Document:

EXHIBIT 4.5

  

   

  

   

  

  
    

    

    

    

    
      
        

    

     

    

    

    

    

    

    

    

    
      

      

      

      

      

      
        
          

      

      
        SCHEDULE RE
            SECTION “D” OF ARTICLES OF AMENDMENT

            

            TRANSALTA CORPORATION (the “Corporation”)

         

            

        The Articles of the Corporation are amended pursuant to Section 27 of the Canada Business
            Corporations Act to create a new series of First Preferred Shares in the capital of the Corporation designated as “Cumulative Redeemable Rate Reset First Preferred Shares, Series G”.  The Corporation is authorized to issue 6,600,000
          Cumulative Redeemable Rate Reset First Preferred Shares, Series G shares.  The rights, privileges, restrictions and conditions attaching to the Cumulative Redeemable Rate Reset First Preferred Shares, Series G shall be as set out in the Schedule
          “A” attached hereto.

        The Articles of the Corporation are amended pursuant to Section 27 of the Canada Business
            Corporations Act to create a new series of First Preferred Shares in the capital of the Corporation designated as “Cumulative Redeemable Floating Rate First Preferred Shares, Series H”.  The Corporation is authorized to issue 6,600,000
          Cumulative Redeemable Floating Rate First Preferred Shares, Series H shares.  The rights, privileges, restrictions and conditions attaching to the Cumulative Redeemable Floating Rate First Preferred Shares, Series H shall be as set out in the
          Schedule “B” attached hereto.

         

        

        
          
            

        

        

        

        SCHEDULE “A”

          

        

            SERIES G FIRST PREFERRED SHARES

         

              

        The seventh series of First Preferred Shares of the Corporation shall consist of 6,600,000 shares designated as Cumulative
          Redeemable Rate Reset First Preferred Shares, Series G (the “Series G Preferred Shares”).  In addition to the rights, privileges, restrictions and conditions attaching to the First Preferred Shares as a
          class, the rights, privileges, restrictions and conditions attaching to the Series G Preferred Shares shall be as follows:

        
          
            	1.	
                    Interpretation

                  

          

        

        
          
            	

                  	(a)	
                    In these Series G Preferred Share provisions, the following expressions have the meanings indicated:

                  

          

        

        
          
            	

                  	(i)	
                    “Annual Fixed Dividend Rate” means, for any Subsequent Fixed Rate Period, the annual rate of interest (expressed as a percentage rounded to
                      the nearest one hundred-thousandth of one percent (with 0.000005% being rounded up)) equal to the sum of the Government of Canada Yield on the applicable Fixed Rate Calculation Date and 3.80%;

                  

          

        

        
          
            	

                  	(ii)	
                    “Bloomberg Screen GCAN5YR Page” means the display designated as page “GCAN5YR<INDEX>” on the
                      Bloomberg Financial L.P. service or its successor service (or such other page as may replace the GCAN5YR<INDEX> page on that service or its successor service) for purposes of displaying Government of Canada bond yields;

                  

          

        

        
          
            	

                  	(iii)	
                    “Book-Based System” means the record entry securities transfer and pledge system administered by the System Operator in accordance with the
                      operating rules and procedures of the System Operator in force from time to time and any successor system thereof;

                  

          

        

        
          
            	

                  	(iv)	
                    “Book-Entry Holder” means the person that is the beneficial holder of a Book-Entry Share;

                  

          

        

        
          
            	

                  	(v)	
                    “Book-Entry Shares” means the Series G Preferred Shares held through the Book-Based System;

                  

          

        

        
          
            	

                  	(vi)	
                    “Business Day” means a day on which chartered banks are generally open for business in both Calgary, Alberta and Toronto, Ontario;

                  

          

        

        
          
            	

                  	(vii)	
                    “CDS” means CDS Clearing and Depository Services Inc. or any successor thereof;

                  

          

        

        
          
            	

                  	(viii)	
                    “Common Shares” means the common shares of the Corporation;

                  

          

        

        
          
            	

                  	(ix)	
                    “Definitive Share” means a fully registered, typewritten, printed, lithographed, engraved or otherwise produced share certificate
                      representing one or more Series G Preferred Shares;

                  

          

        

        
          
            
              
                	 	
                        (x)

                      	
                        “Dividend Payment Date” means the last day of March, June, September and December, in each year; provided that, if such date is not a Business Day, the
                          applicable Dividend Payment Date will be the next succeeding Business Day;

                      

              

               

              

              
                
                  

              

              

          

        

        
          
            	

                  	(xi)	
                    “First Preferred Shares” means the first preferred shares of the Corporation;

                  

          

        

        
          
            	

                  	(xii)	
                    “Fixed Rate Calculation Date” means, for any Subsequent Fixed Rate Period, the 30th day prior to the first day of such Subsequent Fixed
                      Rate Period;

                  

          

        

        
          
            	

                  	(xiii)	
                    “Floating Quarterly Dividend Rate” means, for any Quarterly Floating Rate Period, the annual rate of interest (expressed as a percentage
                      rounded to the nearest one hundred-thousandth of one percent (with 0.000005% being rounded up)) equal to the sum of the T-Bill Rate on the applicable Floating Rate Calculation Date and 3.80%;

                  

          

        

        
          
            	

                  	(xiv)	
                    “Floating Rate Calculation Date” means, for any Quarterly Floating Rate Period, the 30th day prior to the first day of such Quarterly
                      Floating Rate Period;

                  

          

        

        
          
            	

                  	(xv)	
                    “Global Certificate” means the global certificate representing outstanding Book-Entry Shares;

                  

          

        

        
          
            	

                  	(xvi)	
                    “Government of Canada Yield” on any date means the yield to maturity on such date (assuming semi-annual compounding) of a Canadian dollar
                      denominated non-callable Government of Canada bond with a term to maturity of five years as quoted as of 10:00 a.m. (Toronto time) on such date and that appears on the Bloomberg Screen GCAN5YR Page on such date; provided that if such
                      rate does not appear on the Bloomberg Screen GCAN5YR Page on such date, then the Government of Canada Yield shall mean the arithmetic average of the yields quoted to the Corporation by two registered Canadian investment dealers
                      selected by the Corporation as being the annual yield to maturity on such date, compounded semi-annually, that a non-callable Government of Canada bond would carry if issued, in Canadian dollars in Canada, at 100% of its principal
                      amount on such date with a term to maturity of five years;

                  

          

        

        
          
            	

                  	(xvii)	
                    “Initial Fixed Rate Period” means the period from and including the date of issue of the Series G Preferred Shares to but excluding
                      September 30, 2019;

                  

          

        

        
          
            	

                  	(xviii)	
                    “Liquidation” means the liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, or any other
                      distribution of assets of the Corporation among its shareholders for the purpose of winding up its affairs;

                  

          

        

        
          
            	

                  	(xix)	
                    “Participants” means the participants in the Book-Based System;

                  

          

        

        
          
            
              
                	 	
                        (xx)

                      	
                        “Pro Rated Dividend” means the amount determined by multiplying the amount of the dividend payable for a Quarter in which a Liquidation, conversion or
                          redemption is to occur by four and multiplying that product by a fraction, the numerator of which is the number of days from and including the Dividend Payment Date immediately preceding the date fixed for Liquidation, conversion
                          or redemption to but excluding such date and the denominator of which is 365 or 366, depending upon the actual number of days in the applicable year;

                      

              

               

              

              
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                  	(xxi)	
                    “Quarter” means a three-month period ending on a Dividend Payment Date;

                  

          

        

        
          
            	

                  	(xxii)	
                    “Quarterly Commencement Date” means the last day of March, June, September and December in each year, commencing September 30, 2019;

                  

          

        

        
          
            	

                  	(xxiii)	
                    “Quarterly Floating Rate Period” means the period from and including a Quarterly Commencement Date to but excluding the next succeeding
                      Quarterly Commencement Date;

                  

          

        

        
          
            	

                  	(xxiv)	
                    “Series G Conversion Date” means September 30, 2019, and September 30 in every fifth year thereafter;

                  

          

        

        
          
            	

                  	(xxv)	
                    “Series H Preferred Shares” means the Cumulative Redeemable Floating Rate First Preferred Shares, Series H of the Corporation;

                  

          

        

        
          
            	

                  	(xxvi)	
                    “Subsequent Fixed Rate Period” means, for the initial Subsequent Fixed Rate Period, the period from and including September 30, 2019, to
                      but excluding September 30, 2024, and for each succeeding Subsequent Fixed Rate Period means the period from and including the day immediately following the last day of the immediately preceding Subsequent Fixed Rate Period to but
                      excluding September 30 in the fifth year thereafter;

                  

          

        

        
          
            	

                  	(xxvii)	
                    “System Operator” means CDS or its nominee or any successor thereof; and

                  

          

        

        
          
            	

                  	(xxviii)	
                    “T-Bill Rate” means, for any Quarterly Floating Rate Period, the average yield expressed as an annual rate on 90 day Government of Canada
                      treasury bills, as reported by the Bank of Canada, for the most recent treasury bills auction preceding the applicable Floating Rate Calculation Date.

                  

          

        

        
          
            	

                  	(b)	
                    The expressions “on a parity with”, “ranking prior to”, “ranking
                        junior to” and similar expressions refer to the order of priority in the payment of dividends or in the distribution of assets in the event of any Liquidation.

                  

          

        

        
          
            	

                  	(c)	
                    If any day on which any dividend on the Series G Preferred Shares is payable by the Corporation or on or by which any other action is required to be taken by the Corporation is
                      not a Business Day, then such dividend shall be payable and such other action may be taken on or by the next succeeding day that is a Business Day.

                  

          

        

        
          
            	2.	
                    Dividends

                  

          

        

        
          
            
              
                	 	
                        (a)

                      	
                        During the Initial Fixed Rate Period, the holders of the Series G Preferred Shares shall be entitled to receive and the Corporation shall pay, as and when declared by the board of directors of the
                          Corporation, out of the moneys of the Corporation properly applicable to the payment of dividends, fixed cumulative preferential cash dividends at an annual rate of $1.325 per share, payable quarterly on each Dividend Payment Date
                          in each year.  The first dividend, if declared, shall be payable on December 31, 2014, and, notwithstanding the foregoing, shall be in 

                        

                      

              

               

              

              
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                        the amount per share determined by multiplying $1.325 by the number of days in the period from and including the date of issue of the Series G Preferred Shares to but excluding, December 31, 2014, and dividing that product by
                          365.

                      

              

            

          

        

        
          
            	

                  	(b)	
                    During each Subsequent Fixed Rate Period, the holders of the Series G Preferred Shares shall be entitled to receive and the Corporation shall pay, as and when declared by the
                      Board of Directors, out of the moneys of the Corporation properly applicable to the payment of dividends, fixed cumulative preferential cash dividends, payable quarterly on each Dividend Payment Date, in the amount per share
                      determined by multiplying one-quarter of the Annual Fixed Dividend Rate for such Subsequent Fixed Rate Period by $25.00.

                  

          

        

        
          
            	

                  	(c)	
                    On each Fixed Rate Calculation Date, the Corporation shall determine the Annual Fixed Dividend Rate for the ensuing Subsequent Fixed Rate Period.  Each such determination shall,
                      in the absence of manifest error, be final and binding upon the Corporation and upon all holders of Series G Preferred Shares.  The Corporation shall, on each Fixed Rate Calculation Date, give written notice of the Annual Fixed
                      Dividend Rate for the ensuing Subsequent Fixed Rate Period to the registered holders of the then outstanding Series G Preferred Shares.  Each such notice shall be given by electronic transmission, by facsimile transmission or by
                      ordinary unregistered first class prepaid mail addressed to each holder of Series G Preferred Shares at the last address of such holder as it appears on, the books of the Corporation or, in the event of the address of any holder not
                      so appearing, to the address of such holder last known to the Corporation.

                  

          

        

        
          
            	

                  	(d)	
                    If a dividend has been declared for a Quarter and a date is fixed for a Liquidation, redemption or conversion that is prior to the Dividend Payment Date for such Quarter, a Pro
                      Rated Dividend shall be payable on the date fixed for such Liquidation, redemption or conversion instead of the dividend declared, but if such Liquidation, redemption or conversion does not occur, then the full amount of the dividend
                      declared shall be payable on the originally scheduled Dividend Payment Date.

                  

          

        

        
          
            	

                  	(e)	
                    If the dividend payable on any Dividend Payment Date is not paid in full on such date on all of the Series G Preferred Shares then outstanding, such dividend or the unpaid part of
                      it shall be paid on a subsequent date or dates to be determined by the Board of Directors on which the Corporation shall have sufficient moneys properly applicable, under the provisions of any applicable law and under the provisions
                      of any trust indenture securing bonds, debentures or other securities of the Corporation, to the payment of the dividend.

                  

          

        

        
          
            	

                  	(f)	
                    Cheques of the Corporation payable in lawful money of Canada at par at any branch of the Corporation’s bankers in Canada may be issued in respect of the dividends (less any tax
                      required to be deducted) and payment of the cheques shall satisfy such dividends, or payments in respect of dividends may be made in any other manner determined by the Corporation.

                  

          

        

        
          
            
              
                	 	
                        (g)

                      	
                        The holders of the Series G Preferred Shares shall not be entitled to any dividend other than as specified in this paragraph (2).

                      

              

               

              

              
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            	3.	
                    Purchase for Cancellation.

                  

          

        

        Subject to the provisions of paragraphs (5) and (9) and subject to such provisions of the Canada

            Business Corporations Act as may be applicable, the Corporation may at any time or times purchase (if obtainable) for cancellation all or any part of the Series G Preferred Shares outstanding from time to time:

        
          
            	

                  	(a)	
                    through the facilities of any stock exchange on which the Series G Preferred Shares are listed,

                  

          

        

        
          
            	

                  	(b)	
                    by invitation for tenders addressed to all the holders of record of the Series G Preferred Shares outstanding, or

                  

          

        

        
          
            	

                  	(c)	
                    in any other manner,

                  

          

        

        at the lowest price or prices at which, in the opinion of the Board of Directors, such shares are obtainable.  If upon any
          invitation for tenders under the provisions of this paragraph (3) more Series G Preferred Shares are tendered at a price or prices acceptable to the Corporation than the Corporation is willing to purchase, the Corporation shall accept, to the
          extent required, the tenders submitted at the lowest price and then, if and as required, the tenders submitted at the next progressively higher prices, and if more shares are tendered at any such price than the Corporation is prepared to
          purchase, then the shares tendered at such price shall be purchased as nearly as may be pro rata (disregarding fractions) according to the number of Series G Preferred Shares so tendered by each of the holders of Series G Preferred Shares who
          submit tenders at that price.  From and after the date of purchase of any Series G Preferred Shares under the provisions of this paragraph (3), the shares so purchased shall be restored to the status of authorized but unissued shares.

        
          
            	4.	
                    Redemption

                  

          

        

        
          
            	

                  	(a)	
                    The Series G Preferred Shares shall not be redeemable prior to September 30, 2019.  Subject to the provisions of paragraph (8), on September 30, 2019, and on September 30 in every
                      fifth year thereafter, the Corporation, upon giving notice as herein provided, may redeem all or any part of the Series G Preferred Shares by the payment of an amount in cash for each share to be redeemed equal to $25.00 (such amount
                      being the “redemption amount”) plus all accrued and unpaid dividends thereon to but excluding the date fixed for redemption (the whole constituting the “cash
                        redemption price”).  For the purposes of subsection 191(4) of the Income Tax Act (Canada) or any successor or replacement provision of similar effect, the amount specified in respect
                      of each Series G Preferred Share is $25.00.

                  

          

        

        
          
            
              
                	 	
                        (b)

                      	
                        In any case of redemption of Series G Preferred Shares under the provisions of this paragraph (4), the Corporation shall, at least 30 days and not more than 60 days before the date specified for
                          redemption, mail to each person who at the date of mailing is a registered holder of Series G Preferred Shares to be redeemed a written notice of the intention of the Corporation to redeem such Series G Preferred Shares.  Such
                          notice shall be mailed in a prepaid letter addressed to each such holder at the holder’s address as it appears on the books of the Corporation or, in the event of the address of any such holder not so appearing, to the last known
                          address of such holder; provided, however, that accidental failure to give any such notice to one or more of such holders shall not

                        

                      

              

              

                
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                          affect the validity of such redemption.  Such notice shall set out the cash redemption price and the date on which redemption is to take place and, if part only of the Series G Preferred Shares
                            held by the person to whom it is addressed is to be redeemed, the number so to be redeemed.  On or after the date so specified for redemption the Corporation shall pay or cause to be paid to or to the order of the registered
                            holders of the Series G Preferred Shares to be redeemed the cash redemption price on presentation and surrender at the head office of the Corporation or any other place designated in such notice of the certificates for the
                            Series G Preferred Shares called for redemption, subject to the provisions of paragraph (14).  Such payment shall be made by cheque payable at par at any branch of the Corporation’s bankers in Canada.  Such Series G Preferred
                            Shares shall then be and be deemed to be redeemed and shall be restored to the status of authorized but unissued shares.  If a part only of the shares represented by any certificate shall be redeemed, a new certificate for the
                            balance shall be issued at the expense of the Corporation.  From and after the date specified in any such notice, the Series G Preferred Shares called for redemption shall cease to be entitled to dividends and the holders shall
                            not be entitled to exercise any of the rights of holders in respect thereof unless payment of the cash redemption price shall not be made upon presentation of certificates in accordance with the foregoing provisions, in which
                            case the rights of the holders shall remain unaffected.  The Corporation shall have the right, at any time after the mailing of notice of its intention to redeem any Series G Preferred Shares, to deposit the cash redemption
                            price of the shares so called for redemption, or of such of the shares represented by certificates that have not at the date of such deposit been surrendered by the holders in connection with such redemption, to a special
                            account in any chartered bank or any trust company in Canada named in such notice, to be paid without interest to or to the order of the respective holders of such Series G Preferred Shares called for redemption upon
                            presentation and surrender to such bank or trust company of the certificates representing such shares.  Upon such deposit being made or upon the date specified for redemption in such notice, whichever is the later, the Series G
                            Preferred Shares in respect of which such deposit shall have been made shall then be and be deemed to be redeemed and shall be restored to the status of authorized but unissued shares and the rights of the holders after such
                            deposit or such redemption date shall be limited to receiving without interest their proportionate part of the total cash redemption price so deposited against presentation and surrender of the certificates held by them
                            respectively.  Any interest allowed on any such deposit shall belong to the Corporation and any unclaimed funds remaining on deposit on the sixth anniversary date of the redemption shall be returned to the Corporation.  Subject
                            to such provisions of the Canada Business Corporations Act as may be applicable, in case a part only of the then outstanding Series G Preferred Shares is at any time to be redeemed, the shares so to be redeemed shall be selected
                            by lot in such manner as the Board of Directors or the transfer agent and registrar, if any, appointed by the Corporation in respect of such shares shall decide, or, if the Board of Directors so decides, such shares may be
                            redeemed pro rata (disregarding fractions).

                        

                

              

            

          

        

        
          
            	5.	
                    Conversion into Series H Preferred Shares

                  

          

        

        
          
            
              
                	 	
                        (a)

                      	
                        The Series G Preferred Shares shall not be convertible prior to September 30, 2019.  Holders of Series G Preferred Shares shall have the right to convert on

                        

                      

              

               

              

              
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                        each Series G Conversion Date, subject to the provisions hereof, all or any of their Series G Preferred Shares into Series H Preferred Shares on the basis of one Series H Preferred Share for each Series G Preferred Share.  The
                          Corporation shall, not more than 60 days and not less than 30 days prior to the applicable Series G Conversion Date, give notice in writing in accordance with the provisions of subparagraph 2(c) to the then registered holders of
                          the Series G Preferred Shares of the conversion right provided for in this paragraph (5), which notice shall set out the Series G Conversion Date and instructions to such holders as to the method by which such conversion right may
                          be exercised.  On the 30th day prior to each Series G Conversion Date, the Corporation shall give notice in writing to the then registered holders of the Series G Preferred Shares of the Annual Fixed Dividend Rate for the Series G
                          Preferred Shares for the next succeeding Subsequent Fixed Rate Period and the Floating Quarterly Dividend Rate for the Series H Preferred Shares for the next succeeding Quarterly Floating Rate Period.  Such notice shall be
                          delivered in accordance with the provisions of subparagraph (2)(c).

                      

              

            

          

        

        
          
            	

                  	(b)	
                    If the Corporation gives notice as provided in paragraph (4) to the holders of the Series G Preferred Shares of the redemption of all of the Series G Preferred Shares, then the
                      right of a holder of Series G Preferred Shares to convert such Series G Preferred Shares shall terminate effective on the date of such notice and the Corporation shall not be required to give the notice specified in subparagraph (a)
                      of this paragraph (5).

                  

          

        

        
          
            	

                  	(c)	
                    Holders of Series G Preferred Shares shall not be entitled to convert their shares into Series H Preferred Shares if the Corporation determines that there would remain outstanding
                      on a Series G Conversion Date less than 1,000,000 Series H Preferred Shares, after having taken into account all Series G Preferred Shares tendered for conversion into Series H Preferred Shares and all Series H Preferred Shares
                      tendered for conversion into Series G Preferred Shares, and the Corporation shall give notice in writing thereof in accordance with the provisions of subparagraph (2)(c) to all affected registered holders of the Series G Preferred
                      Shares at least seven days prior to the applicable Series G Conversion Date and shall issue and deliver, or cause to be delivered, prior to such Series G Conversion Date, at the expense of the Corporation, to such holders of Series G
                      Preferred Shares who have surrendered for conversion any certificate or certificates representing Series G Preferred Shares, certificates representing the Series G Preferred Shares represented by any certificate or certificates so
                      surrendered.

                  

          

        

        
          
            
              
                	 	
                        (d)

                      	
                        If the Corporation determines that there would remain outstanding on a Series G Conversion Date less than 1,000,000 Series G Preferred Shares, after having taken into account all Series G Preferred
                          Shares tendered for conversion into Series H Preferred Shares and all Series H Preferred Shares tendered for conversion into Series G Preferred Shares, then all of the remaining outstanding Series G Preferred Shares shall be
                          converted automatically into Series H Preferred Shares on the basis of one Series H Preferred Share for each Series G Preferred Share on the applicable Series G Conversion Date and the Corporation shall give notice in writing
                          thereof in accordance with the provisions of subparagraph (2)(c) to the then registered holders of such remaining Series G Preferred Shares at least seven days prior to the Series G Conversion Date.

                      

              

               

              

              
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                  	(e)	
                    The conversion right may be exercised by a holder of Series G Preferred Shares by notice in writing, in a form satisfactory to the Corporation (the “Series G Conversion Notice”), which notice must be received by the transfer agent and registrar for the Series G Preferred Shares at the principal office in Toronto or Calgary of such transfer agent and registrar not
                      earlier than the 30th day prior to, but not later than 5:00 p.m. (Toronto time) on the 15th day preceding, a Series G Conversion Date.  The Series G Conversion Notice shall Indicate the number of Series G Preferred Shares to be converted and shall be accompanied by payment or evidence of payment of
                      applicable taxes.  Once received by the transfer agent and registrar on behalf of the Corporation, the election of a holder to convert is irrevocable.  Except in the case where the Series H Preferred Shares are in the Book-Based
                      System, if the Series H Preferred Shares are to be registered in a name or names different from the name or names of the registered holder of the Series G Preferred Shares to be converted, the Series G Conversion Notice shall contain
                      written notice in form and execution satisfactory to such transfer agent and registrar directing the Corporation to register the Series H Preferred Shares in some other name or names (the “Series H
                        Transferee”) and stating the name or names (with addresses) accompanied by payment to the transfer agent and any registrar of any transfer taxes which may be payable by reason thereof, and a written declaration, if required
                      by the Corporation or by applicable law, as to the residence and share ownership status of the Series H Transferee and such other matters as may be required by such law in order to determine the entitlement of such Series H Transferee
                      to hold such Series H Preferred Shares.

                  

          

        

        
          
            	

                  	(f)	
                    If all remaining outstanding Series G Preferred Shares are to be converted into Series H Preferred Shares on the applicable Series G Conversion Date as provided for in
                      subparagraph (d) of this paragraph (5), the Series G Preferred Shares that holders have not previously elected to convert shall be converted on the Series G Conversion Date into Series H Preferred Shares and the holders thereof shall
                      be deemed to be holders of Series H Preferred Shares at 5:00 p.m. (Toronto time) on the Series G Conversion Date and shall be entitled, upon surrender during regular business hours at the principal office in Toronto or Calgary of the
                      transfer agent and registrar of the Corporation of the certificate or certificates representing Series G Preferred Shares not previously surrendered for conversion, to receive a certificate or certificates representing the same number
                      of Series H Preferred Shares in the manner and subject to the provisions of this paragraph (5) and paragraph (14).

                  

          

        

        
          
            
              
                	 	
                        (g)

                      	
                        Subject to subparagraph (h) of this paragraph (5) and paragraph (14), as promptly as practicable after the Series G Conversion Date the Corporation shall deliver or cause to be delivered
                          certificates representing the Series H Preferred Shares registered in the name of the holders of the Series G Preferred Shares to be converted, or as such holders shall have directed, on presentation and surrender at the principal
                          office in Toronto or Calgary of the transfer agent and registrar for the Series G Preferred Shares of the certificate or certificates for the Series G Preferred Shares to be converted.  If only a part of such Series G Preferred
                          Shares represented by any certificate shall be converted, a new certificate for the balance shall be issued at the expense of the Corporation.  From and after the date specified in any Series G Conversion Notice, the Series G
                          Preferred Shares converted into Series H Preferred Shares shall cease to be

                        

                      

              

               

              

              
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                        outstanding and shall be restored to the status of authorized but unissued shares, and the holders thereof shall cease to be entitled to dividends and shall not be entitled to exercise any of the
                          rights of holders in respect thereof unless the Corporation shall fail, subject to paragraph (14), to deliver to the holders of the Series G Preferred Shares to be converted share certificates representing the Series H Preferred
                          Shares into which such shares have been converted.

                      

              

            

          

        

        
          
            	

                  	(h)	
                    The obligation of the Corporation to issue Series H Preferred Shares upon conversion of any Series G Preferred Shares shall be deferred during the continuance of any one or more
                      of the following events:

                  

          

        

        
          
            	

                  	(i)	
                    the issuing of such Series H Preferred Shares is prohibited pursuant to any agreement or arrangement entered into by the Corporation to assure its solvency or continued operation;

                  

          

        

        
          
            	

                  	(ii)	
                    the issuing of such Series H Preferred Shares is prohibited by law or by any regulatory or other authority having jurisdiction over the Corporation that is acting in conformity
                      with law; or

                  

          

        

        
          
            	

                  	(iii)	
                    for any reason beyond its control, the Corporation is unable to issue Series H Preferred Shares or is unable to deliver Series H Preferred Shares.

                  

          

        

        
          
            	

                  	(i)	
                    The Corporation reserves the right not to deliver Series H Preferred Shares to any person that the Corporation or its transfer agent and registrar has reason to believe is a
                      person whose address is in, or that the Corporation or its transfer agent and registrar has reason to believe is a resident of, any jurisdiction outside Canada if such delivery would require the Corporation to take any action to
                      comply with the securities laws of such jurisdiction.  In those circumstances, the Corporation shall hold, as agent of any such person, all or the relevant number of Series H Preferred Shares, and the Corporation shall attempt to sell
                      such Series H Preferred Shares to parties other than the Corporation and its affiliates on behalf of any such person.  Such sales (if any) shall be made at such times and at such prices as the Corporation, in its sole discretion, may
                      determine.  The Corporation shall not be subject to any liability for failure to sell Series H Preferred Shares on behalf of any such person at all or at any particular price or on any particular day.  The net proceeds received by the
                      Corporation from the sale of any such Series H Preferred Shares shall be delivered to any such person, after deducting the costs of sale and any applicable withholding taxes, by cheque or in any other manner determined by the
                      Corporation.

                  

          

        

        
          
            	6.	
                    Liquidation, Dissolution or Winding-up

                  

          

        

        In the event of a Liquidation, the holders of the Series G Preferred Shares shall be entitled to receive $25.00 per Series G
          Preferred Share plus all accrued and unpaid dividends thereon, which for such purpose shall be calculated on a pro rata basis for the period from and including the last Dividend Payment Date on which dividends on the Series G Preferred Shares
          have been paid to but excluding the date of such Liquidation, before any amount shall be paid or any property or assets of the Corporation shall be distributed to the holders of the Common Shares or to the holders of any other shares ranking
          junior to the Series G Preferred Shares in any respect.  After payment to the holders of the Series G Preferred Shares of the amount so 

        
          Page 9 of 28

          
            

        

        payable to them, they shall not, as such, be entitled to share in any further distribution of the property or assets of the
          Corporation.

        
          
            	7.	
                    Voting Rights

                  

          

        

        The holders of the Series G Preferred Shares shall not be entitled to receive notice of or to attend any meeting of the
          shareholders of the Corporation and shall not be entitled to vote at any such meeting unless and until the Corporation fails to pay in the aggregate six quarterly dividends on the Series G Preferred Shares pursuant to paragraph (2) hereof on the
          dates when the same should be paid, whether or not consecutive, and whether or not such dividends have been declared and whether or not there are any moneys of the Corporation properly applicable to the payment of dividends; thereafter, but only
          for so long as any dividends on the Series G Preferred Shares remain in arrears, the holders of the Series G Preferred Shares shall be entitled to one vote for each full $25.00 of subscription price of the Series G Preferred Shares held by them
          and in addition shall be entitled, voting separately and exclusively as a combined class with the holders of all series of First Preferred Shares who at such time are entitled to vote for the election of directors, to elect two members of the
          board of directors if the board consists of less than sixteen directors or three members of the board of directors if the board consists of sixteen or more directors.  Notwithstanding anything contained in the by-laws of the Corporation, the term
          of office of all persons who may be directors of the Corporation at any time when the right to elect directors shall accrue to the holders of the Series G Preferred Shares as provided in this paragraph or who may be appointed as directors
          thereafter and before a meeting of shareholders shall have been held shall terminate upon the election of directors at the next annual meeting of shareholders or at a special meeting of shareholders which may be held for the purpose of electing
          directors at any time after the accrual of such right to elect directors upon not less than 21 days’ written notice and which shall be called by the Secretary of the Corporation upon the written request of the holders of record of at least
          one-tenth of the aggregate subscription price of the then outstanding First Preferred Shares then entitled to vote for the election of directors; in default of the calling of such special meeting by the Secretary within five days after the making
          of such request such meeting may be called by any holder of record of First Preferred Shares then entitled to vote for the election of directors.  Any vacancy occurring among the members of the board elected to represent the holders of any First
          Preferred Shares in accordance with the foregoing provisions of this paragraph may be filled by the board with the consent and approval of a remaining director elected to represent the holders of First Preferred Shares but if there be no such
          remaining director the board may elect sufficient members to fill the vacancy or vacancies.  Whether or not such vacancies are so filled by the board, the holders of record of at least one-tenth of the aggregate subscription price of the then
          outstanding First Preferred Shares entitled to vote for the election of directors shall have the right to require the Secretary of the Corporation to call a meeting of the holders of First Preferred Shares entitled to vote for the election of
          directors for the purpose of filling the vacancies or replacing all or any of the persons filling such vacancies who have been appointed by the directors when there is no director in office who has been elected to represent the holders of the
          First Preferred Shares entitled to vote for the election of directors.  Notwithstanding anything contained in the by-laws of the Corporation, (1) upon any termination of the said right to elect directors, the term of office of the directors
          elected or appointed to represent the holders of First Preferred Shares entitled to vote for the election of directors shall forthwith terminate and (2) it shall not be necessary for a person to be a holder of First Preferred Shares in order to
          qualify for election or appointment as a director of the Corporation to represent the holders of First Preferred Shares as described hereunder.

        
          Page 10 of 28

          
            

        

        
          
            	8.	
                    Restrictions on Partial Redemption or Purchase

                  

          

        

        So long as any of the Series G Preferred Shares are outstanding, the Corporation shall not call for redemption, purchase, reduce
          or otherwise pay for less than all the Series G Preferred Shares and all other preferred shares then outstanding ranking prior to or on a parity with the Series G Preferred Shares with respect to payment of dividends unless all dividends up to
          and including the dividends payable on the last preceding dividend payment dates on all such shares then outstanding shall have been declared and paid or set apart for payment at the date of such call for redemption, purchase, reduction or other
          payment.

        
          
            	9.	
                    Restrictions on Payment of Dividends and Reduction of Junior Capital

                  

          

        

        So long as any of the Series G Preferred Shares are outstanding, the Corporation shall not:

        
          
            	

                  	(a)	
                    declare, pay or set apart for payment any dividends (other than stock dividends in shares of the Corporation ranking junior to the Series G Preferred Shares) on the Common Shares
                      or any other shares of the Corporation ranking junior to the Series G Preferred Shares with respect to payment of dividends; or

                  

          

        

        
          
            	

                  	(b)	
                    call for redemption of, purchase, reduce the stated capital maintained by the Corporation or otherwise pay for any shares of the Corporation ranking junior to the Series G
                      Preferred Shares with respect to repayment of capital or with respect to payment of dividends;

                  

          

        

        unless all dividends up to and including the dividends payable on the last preceding dividend payment dates on the Series G
          Preferred Shares and on all other preferred shares ranking prior to or on a parity with the Series G Preferred Shares with respect to payment of dividends then outstanding shall have been declared and paid or set apart for payment at the date of
          any such action referred to in subparagraphs 9(a) and (b).

        
          
            	10.	
                    Issue of Additional Preferred Shares

                  

          

        

        No class of shares may be created or issued ranking as to repayment of capital or payment of dividends prior to or on a parity
          with the Series G Preferred Shares without the prior approval of the holders of the Series G Preferred Shares given as specified in paragraph (11), nor shall the number of Series G Preferred Shares be increased without such approval; provided,
          however, that nothing in this paragraph (10) shall prevent the Corporation from creating additional series of First Preferred Shares and, if all dividends then payable on the Series G Preferred Shares and Series H Preferred Shares shall have been
          paid or set apart for payment, from issuing additional series of First Preferred Shares without such approval.

        
          
            	11.	
                    Sanction by Holders of Series G Preferred Shares

                  

          

        

        The approval of the holders of the Series G Preferred Shares with respect to any and all matters referred to in these share
          provisions may be given in writing by all of the holders of the Series G Preferred Shares outstanding or by resolution duly passed and carried by not less than two-thirds of the votes cast on a poll at a meeting of the holders of the Series G
          Preferred Shares duly called and held for the purpose of considering the subject matter of such resolution and at which holders of not less than a majority of all Series G Preferred Shares then outstanding are present in person or represented by
          proxy in accordance with the by-laws of the Corporation; provided, however, that if at any such meeting, when originally held, the holders of at least a majority of all Series G Preferred Shares then outstanding are not present in person or 

        
          Page 11 of 28

          
            

        

        so represented by proxy within 30 minutes after the time fixed for the meeting, then the meeting shall be adjourned to such date,
          being not less than 15 days later, and to such time and place as may be fixed by the chairman of such meeting, and at such adjourned meeting the holders of Series G Preferred Shares present in person or so represented by proxy, whether or not
          they hold a majority of all Series G Preferred Shares then outstanding, may transact the business for which the meeting was originally called, and a resolution duly passed and carried by not less than two-thirds of the votes cast on a poll at
          such adjourned meeting shall constitute the approval of the holders of the Series G Preferred Shares.  Notice of any such original meeting of the holders of the Series G Preferred Shares shall be given not less than 15 days prior to the date
          fixed for such meeting and shall specify in general terms the purpose for which the meeting is called, and notice of any such adjourned meeting shall be given not less than 10 days prior to the date fixed for such adjourned meeting, but it shall
          not be necessary to specify in such notice the purpose for which the adjourned meeting is called.  The formalities to be observed with respect to the giving of notice of any such original meeting or adjourned meeting and the conduct of it shall
          be those from time to time prescribed in the by-laws of the Corporation with respect to meetings of shareholders.  On every poll taken at any such original meeting or adjourned meeting, each holder of Series G Preferred Shares present in person
          or represented by proxy shall be entitled to one vote for each of the Series G Preferred Shares held by such holder.

        
          
            	12.	
                    Tax Election

                  

          

        

        The Corporation shall elect, in the manner and within the time provided under subsection 191.2(1) of the Income Tax Act (Canada) or any successor or replacement provision of similar effect, to pay tax at a rate, and shall take all other action necessary under such Act, such that no holder of Series G Preferred Shares shall be
          required to pay tax on dividends received on the Series G Preferred Shares under section 187.2 of such Act or any successor or replacement provision of similar effect.  Nothing in this paragraph shall prevent the Corporation from entering into an
          agreement with a taxable Canadian corporation with which it is related to transfer all or a portion of the Corporation’s liability for tax under section 191.1 of the Income Tax Act (Canada) to that
          taxable Canadian corporation in accordance with the provisions of section 191.3 of such Act.

        
          
            	13.	
                    Withholding Tax

                  

          

        

        Notwithstanding any other provision of these share provisions, the Corporation may deduct or withhold from any payment,
          distribution, issuance or delivery (whether in cash or in shares) to be made pursuant to these share provisions any amounts required or permitted by law to be deducted or withheld from any such payment, distribution, issuance or delivery and
          shall remit any such amounts to the relevant tax authority as required.  If the cash component of any payment, distribution, issuance or delivery to be made pursuant to these share provisions is less than the amount that the Corporation is so
          required or permitted to deduct or withhold, the Corporation shall be permitted to deduct and withhold from any non-cash payment, distribution, issuance or delivery to be made pursuant to these share provisions any amounts required or permitted
          by law to be deducted or withheld from any such payment, distribution, issuance or delivery and to dispose of such property in order to remit any amount required to be remitted to any relevant tax authority.  Notwithstanding the foregoing, the
          amount of any payment, distribution, issuance or delivery made to a holder of Series G Preferred Shares pursuant to these share provisions shall be considered to be the amount of the payment, distribution, issuance or delivery received by such
          holder plus any amount deducted or withheld pursuant to this paragraph (13).  Holders of Series G Preferred Shares shall be responsible for all 

        
          Page 12 of 28

          
            

        

        withholding taxes under Part XIII of the Income Tax Act (Canada) in respect of any
          payment, distribution, issuance or delivery made or credited to them pursuant to these share provisions and shall indemnify and hold harmless the Corporation on an after-tax basis for any such taxes imposed on any payment, distribution, issuance
          or delivery made or credited to them pursuant to these share provisions.

        
          
            	14.	
                    Book-Based System

                  

          

        

        
          
            	

                  	(a)	
                    Subject to the provisions of subparagraphs (b) and (c) of this paragraph (14) and notwithstanding the provisions of paragraphs (1) through (13) of these share provisions, the
                      Series G Preferred Shares shall be evidenced by a single fully registered Global Certificate representing the aggregate number of Series G Preferred Shares issued by the Corporation which shall be held by, or on behalf of, the System
                      Operator as custodian of the Global Certificate for the Participants and registered in the name of “CDS & CO.” (or in such other name as the System Operator may use from time to time as its
                      nominee for purposes of the Book-Based System), and registrations of ownership, transfers, surrenders and conversions of Series G Preferred Shares shall be made only through the Book-Based System.  Accordingly, subject to subparagraph
                      (c) of this paragraph (14), no beneficial holder of Series G Preferred Shares shall receive a certificate or other instrument from the Corporation or the System Operator evidencing such holder’s ownership thereof, and no such holder
                      shall be shown on the records maintained by the System Operator except through a book-entry account of a Participant acting on behalf of such holder.

                  

          

        

        
          
            	

                  	(b)	
                    Notwithstanding the provisions of paragraphs (1) through (13), so long as the System Operator is the registered holder of the Series G Preferred Shares:

                  

          

        

        
          
            	

                  	(i)	
                    the System Operator shall be considered the sole owner of the Series G Preferred Shares for the purposes of receiving notices or payments on or in respect of the Series G
                      Preferred Shares or the delivery of Series H Preferred Shares and certificates therefor upon the exercise of rights of conversion; and

                  

          

        

        
          
            	

                  	(ii)	
                    the Corporation, pursuant to the exercise of rights of redemption or conversion, shall deliver or cause to be delivered to the System Operator, for the benefit of the beneficial
                      holders of the Series G Preferred Shares, the cash redemption price for the Series G Preferred Shares or certificates for Series H Preferred Shares against delivery to the Corporation’s account with the System Operator of such
                      holders’ Series G Preferred Shares.

                  

          

        

        
          
            
              
                	 	
                        (c)

                      	
                        If the Corporation determines that the System Operator is no longer willing or able to discharge properly its responsibilities with respect to the Book-Based System and the Corporation is unable to
                          locate a qualified successor or the Corporation elects, or is required by applicable law, to withdraw the Series G Preferred Shares from the Book-Based System, then subparagraphs (a) and (b) of this paragraph (14) shall no longer
                          be applicable to the Series G Preferred Shares and the Corporation shall notify Book-Entry Holders through the System Operator of the occurrence of any such event or election and of the availability of Definitive Shares to
                          Book-Entry Holders.  Upon surrender by the System Operator of the Global Certificate to the transfer agent and registrar for the

                        

                      

              

               

              

              
                Page 13 of 28

                
                  

              

              
                	 	
                        

                        

                      	
                        Series G Preferred Shares accompanied by registration instructions for re-registration, the Corporation shall execute and deliver Definitive Shares.  The Corporation shall not be liable for any
                          delay in delivering such instructions and may conclusively act and rely on and shall be protected in acting and relying on such instructions.  Upon the issuance of Definitive Shares, the Corporation shall recognize the registered
                          holders of such Definitive Shares and the Book-Entry Shares for which such Definitive Shares have been substituted shall be void and of no further effect.

                      

              

            

          

        

        
          
            	

                  	(d)	
                    The provisions of paragraphs (1) through (13) and the exercise of rights of redemption and conversion, with respect to Series G Preferred Shares are subject to the provisions of
                      this paragraph (14), and to the extent that there is any inconsistency or conflict between such provisions, the provisions of this paragraph (14) shall prevail.

                  

          

        

        
          
            	15.	
                    Wire or Electronic Transfer of Funds

                  

          

        

        Notwithstanding any other right, privilege, restriction or condition attaching to the Series G Preferred Shares, the Corporation
          may, at its option, make any payment due to registered holders of Series G Preferred Shares by way of a wire or electronic transfer of funds to such holders.  If a payment is made by way of a wire or electronic transfer of funds, the Corporation
          shall be responsible for any applicable charges or fees relating to the making of such transfer.  As soon as practicable following the determination by the Corporation that a payment is to be made by way of a wire or electronic transfer of funds,
          the Corporation shall provide a notice to the applicable registered holders of Series G Preferred Shares at their respective addresses appearing on the books of the Corporation.  Such notice shall request that each applicable registered holder of
          Series G Preferred Shares provide the particulars of an account of such holder with a chartered bank in Canada to which the wire or electronic transfer of funds shall be directed.  If the Corporation does not receive account particulars from a
          registered holder of Series G Preferred Shares prior to the date such payment is to be made, the Corporation shall deposit the funds otherwise payable to such holder in a special account or accounts in trust for such holder.  The making of a
          payment by way of a wire or electronic transfer of funds or the deposit by the Corporation of funds otherwise payable to a holder in a special account or accounts in trust for such holder shall be deemed to constitute payment by the Corporation
          on the date thereof and shall satisfy and discharge all liabilities of the Corporation for such payment to the extent of the amount represented by such transfer or deposit.

        
          
            	16.	
                    Amendments

                  

          

        

        The provisions attaching to the Series G Shares may be deleted, varied, modified, amended or amplified by articles of amendment
          with such approval as may then be required by the Canada Business Corporations Act, with-
          any such approval to be given in accordance with paragraph (11) and with any required approvals of any stock exchanges on which the Series G Shares may be listed.

          

        

        
          Page 14 of 28

          
            

        

        Schedule “B”

          

            SERIES H FIRST PREFERRED SHARES

        The eighth series of First Preferred Shares of the Corporation shall consist of 6,600,000 shares designated as Cumulative
          Redeemable Floating Rate First Preferred Shares, Series H (the “Series H Preferred Shares”).  In addition to the rights, privileges, restrictions and conditions attaching to the First Preferred Shares as a
          class, the rights, privileges, restrictions and conditions attaching to the Series H Preferred Shares shall be as follows:

        
          
            	1.	
                    Interpretation

                  

          

        

        
          
            	

                  	(a)	
                    In these Series H Preferred Share provisions, the following expressions have the meanings indicated:

                  

          

        

        
          
            	

                  	(i)	
                     “Annual Fixed Dividend Rate” means, for any Subsequent Fixed Rate Period, the annual rate of interest (expressed as a percentage rounded
                      to the nearest one hundred-thousandth of one percent (with 0.000005% being rounded up)) equal to the sum of the Government of Canada Yield on the applicable Fixed Rate Calculation Date and 3.80%;

                  

          

        

        
          
            	

                  	(ii)	
                    “Bloomberg Screen GCAN5YR Page” means the display designated as page “GCAN5YR<INDEX>” on the Bloomberg Financial L.P. service or its
                      successor service (or such other page as may replace the GCAN5YR<INDEX> page on that service or its successor service) for purposes of displaying Government of Canada bond yields;

                  

          

        

        
          
            	

                  	(iii)	
                    “Book-Based System” means the record entry securities transfer and pledge system administered by the System Operator in accordance with the
                      operating rules and procedures of the System Operator in force from time to time and any successor system thereof;

                  

          

        

        
          
            	

                  	(iv)	
                    “Book-Entry Holder” means the person that is the beneficial holder of a Book-Entry Share;

                  

          

        

        
          
            	

                  	(v)	
                    “Book-Entry Shares” means the Series H Preferred Shares held through the Book-Based System;

                  

          

        

        
          
            	

                  	(vi)	
                    “Business Day” means a day on which chartered banks are generally open for business in both Calgary, Alberta and Toronto, Ontario;

                  

          

        

        
          
            	

                  	(vii)	
                    “CDS” means CDS Clearing and Depository Services Inc. or any successor thereof;

                  

          

        

        
          
            	

                  	(viii)	
                    “Common Shares” means the common shares of the Corporation;

                  

          

        

        
          
            	

                  	(ix)	
                    “Definitive Share” means a fully registered, typewritten, printed, lithographed, engraved or otherwise produced share certificate
                      representing one or more Series H Preferred Shares;

                  

          

        

        
          
            
              
                	 	
                        (x)

                      	
                        “Dividend Payment Date” means the last day of March, June, September and December, in each year; provided that, if such date is not a Business Day, the
                          applicable Dividend Payment Date will be the next succeeding Business Day;

                      

              

               

              

              
                Page 15 of 28

                
                  

              

            

          

        

        
          
            	

                  	(xi)	
                    “First Preferred Shares” means the first preferred shares of the Corporation;

                  

          

        

        
          
            	

                  	(xii)	
                    “Fixed Rate Calculation Date” means, for any Subsequent Fixed Rate Period, the 30th day prior to the first day of such Subsequent Fixed Rate Period;

                  

          

        

        
          
            	

                  	(xiii)	
                    “Floating Quarterly Dividend Rate” means, for any Quarterly Floating Rate Period, the annual rate of interest (expressed as a percentage
                      rounded to the nearest one hundred-thousandth of one percent (with 0.000005% being rounded up)) equal to the sum of the T-Bill Rate on the applicable Floating Rate Calculation Date and 3.80%;

                  

          

        

        
          
            	

                  	(xiv)	
                    “Floating Rate Calculation Date” means, for any Quarterly Floating Rate Period, the 30th day prior to the first day of such Quarterly Floating Rate Period;

                  

          

        

        
          
            	

                  	(xv)	
                    “Global Certificate” means the global certificate representing outstanding Book-Entry Shares;

                  

          

        

        
          
            	

                  	(xvi)	
                    “Government of Canada Yield” on any date means the yield to maturity on such date (assuming semi-annual compounding) of a Canadian dollar
                      denominated non-callable Government of Canada bond with a term to maturity of five years as quoted as of 10:00 a.m. (Toronto time) on such date and that appears on the Bloomberg Screen GCAN5YR Page on such date; provided that if such
                      rate does not appear on the Bloomberg Screen GCAN5YR Page on such date, then the Government of Canada Yield shall mean the arithmetic average of the yields quoted to the Corporation by two registered Canadian investment dealers
                      selected by the Corporation as being the annual yield to maturity on such date, compounded semi-annually, that a non-callable Government of Canada bond would carry if issued, in Canadian dollars in Canada, at 100% of its principal
                      amount on such date with a term to maturity of five years;

                  

          

        

        
          
            	

                  	(xvii)	
                    “Liquidation” means the liquidation, dissolution or winding-up of the Corporation, whether voluntary or involuntary, or any other
                      distribution of assets of the Corporation among its shareholders for the purpose of winding up its affairs;

                  

          

        

        
          
            	

                  	(xviii)	
                    “Participants” means the participants in the Book-Based System;

                  

          

        

        
          
            	

                  	(xix)	
                    “Pro Rated Dividend” means the amount determined by multiplying the amount of the dividend payable for a Quarter in which a Liquidation,
                      conversion or redemption is to occur by four and multiplying that product by a fraction, the numerator of which is the number of days from and including the Dividend Payment Date immediately preceding the date fixed for Liquidation,
                      conversion or redemption to but excluding such date and the denominator of which is 365 or 366, depending upon the actual number of days in the applicable year;

                  

          

        

        
          
            
              
                	 	
                        (xx)

                      	
                        “Quarter” means a three-month period ending on a Dividend Payment Date;

                      

              

               

              

              
                Page 16 of 28

                
                  

              

            

          

        

        
          
            	

                  	(xxi)	
                    “Quarterly Commencement Date” means the last day of March, June, September and December in each year, commencing September 30, 2019;

                  

          

        

        
          
            	

                  	(xxii)	
                    “Quarterly Floating Rate Period” means the period from and including a Quarterly Commencement Date to but excluding the next succeeding
                      Quarterly Commencement Date;

                  

          

        

        
          
            	

                  	(xxiii)	
                    “Series G Preferred Shares” means the Cumulative Redeemable Rate Reset First Preferred Shares, Series G of the Corporation;

                  

          

        

        
          
            	

                  	(xxiv)	
                    “Series H Conversion Date” means September 30, 2024, and September 30 in every fifth year thereafter;

                  

          

        

        
          
            	

                  	(xxv)	
                    “Subsequent Fixed Rate Period” means, for the initial Subsequent Fixed Rate Period, the period from and including September 30, 2019, to
                      but excluding September 30, 2024, and for each succeeding Subsequent Fixed Rate Period means the period from and including the day immediately following the last day of the immediately preceding Subsequent Fixed Rate Period to but
                      excluding September 30 in the fifth year thereafter;

                  

          

        

        
          
            	

                  	(xxvi)	
                    “System Operator” means CDS or its nominee or any successor thereof; and

                  

          

        

        
          
            	

                  	(xxvii)	
                    “T-Bill Rate” means, for any Quarterly Floating Rate Period, the average yield expressed as an annual rate on 90 day Government of Canada
                      treasury bills, as reported by the Bank of Canada, for the most recent treasury bills auction preceding the applicable Floating Rate Calculation Date.

                  

          

        

        
          
            	

                  	(b)	
                    The expressions “on a parity with”, “ranking prior to”, “ranking junior to” and similar expressions refer to the order of priority in the payment of dividends or in the
                      distribution of assets in the event of any Liquidation.

                  

          

        

        
          
            	

                  	(c)	
                    If any day on which any dividend on the Series H Preferred Shares is payable by the Corporation or on or by which any other action is required to be taken by the Corporation is
                      not a Business Day, then such dividend shall be payable and such other action may be taken on or by the next succeeding day that is a Business Day.

                  

          

        

        
          
            	2.	
                    Dividends

                  

          

        

        
          
            
              
                	 	
                        (a)

                      	
                        During each Quarterly Floating Rate Period, the holders of the Series H Preferred Shares shall be entitled to receive and the Corporation shall pay, as and when declared by the board of directors of
                          the Corporation, out of the moneys of the Corporation properly applicable to the payment of dividends, cumulative preferential cash dividends, payable on each Dividend Payment Date, in the amount per share determined by
                          multiplying the Floating Quarterly Dividend Rate for such Quarterly Floating Rate Period by $25.00 and multiplying that product by a fraction, the numerator of which is the actual number of days in such Quarterly Floating Rate
                          Period and the denominator of which is 365 or 366, depending on the actual number of days in the applicable year.

                      

              

               

              

              
                Page 17 of 28

                
                  

              

            

          

        

        
          
            	

                  	(b)	
                    On each Floating Rate Calculation Date, the Corporation shall determine the Floating Quarterly Dividend Rate for the ensuing Quarterly Floating Rate Period.  Each such
                      determination shall, in the absence of manifest error, be final and binding upon the Corporation and upon all holders of Series H Preferred Shares.  The Corporation shall, on each Floating Rate Calculation Date, give written notice of
                      the Floating Quarterly Dividend Rate for the ensuing Quarterly Floating Rate Period to the registered holders of the then outstanding Series H Preferred Shares.  Each such notice shall be given by electronic transmission, by facsimile
                      transmission or by ordinary unregistered first class prepaid mail addressed to each holder of Series H Preferred Shares at the last address of such holder as it appears on the books of the Corporation or, in the event of the address
                      of any holder not so appearing, to the address of such holder last known to the Corporation.

                  

          

        

        
          
            	

                  	(c)	
                    If a dividend has been declared for a Quarter and a date is fixed for a Liquidation, redemption or conversion that is prior to the Dividend Payment Date for such Quarter, a Pro
                      Rated Dividend shall be payable on the date fixed for such Liquidation, redemption or conversion instead of the dividend declared, but if such Liquidation, redemption or conversion does not occur, then the full amount of the dividend
                      declared shall be payable on the originally scheduled Dividend Payment Date.

                  

          

        

        
          
            	

                  	(d)	
                    If the dividend payable on any Dividend Payment Date is not paid in full on such date on all of the Series H Preferred Shares then outstanding, such dividend or the unpaid part of
                      it shall be paid on a subsequent date or dates to be determined by the Board of Directors on which the Corporation shall have sufficient moneys properly applicable, under the provisions of any applicable law and under the provisions
                      of any trust indenture securing bonds, debentures or other securities of the Corporation, to the payment of the dividend.

                  

          

        

        
          
            	

                  	(e)	
                    Cheques of the Corporation payable in lawful money of Canada at par at any branch of the Corporation’s bankers in Canada may be issued in respect of the dividends (less any tax
                      required to be deducted) and payment of the cheques shall satisfy such dividends, or payments in respect of dividends may be made in any other manner determined by the Corporation.

                  

          

        

        
          
            	

                  	(f)	
                    The holders of the Series H Preferred Shares shall not be entitled to any dividend other than as specified in this paragraph (2).

                  

          

        

        
          
            	3.	
                    Purchase for Cancellation

                  

          

        

        Subject to the provisions of paragraphs (5) and (8) and subject to such provisions of the Canada

            Business Corporations Act as may be applicable, the Corporation may at any time or times purchase (if obtainable) for cancellation all or any part of the Series H Preferred Shares outstanding from time to time:

        
          
            	

                  	(a)	
                    through the facilities of any stock exchange on which the Series H Preferred Shares are listed,

                  

          

        

        
          
            
              
                	 	
                        (b)

                      	
                        by invitation for tenders addressed to all the holders of record of the Series H Preferred Shares outstanding, or

                      

              

               

              

              
                Page 18 of 28

                
                  

              

            

          

        

        
          
            	

                  	(c)	
                    in any other manner,

                  

          

        

        at the lowest price or prices at which, in the opinion of the Board of Directors, such shares are obtainable.  If upon any
          invitation for tenders under the provisions of this paragraph (3) more Series H Preferred Shares are tendered at a price or prices acceptable to the Corporation than the Corporation is willing to purchase, the Corporation shall accept, to the
          extent required, the tenders submitted at the lowest price and then, if and as required, the tenders submitted at the next progressively higher  prices, and if more
          shares are tendered at any such price than the Corporation is prepared to purchase, then the shares tendered at such price shall be purchased as nearly as may be pro rata (disregarding fractions) according to the number of Series H Preferred
          Shares so tendered by each of the holders of Series H Preferred Shares who submit tenders at that price.  From and after the date of purchase of any Series H Preferred Shares under the provisions of this paragraph (3), the shares so purchased
          shall be restored to the status of authorized but unissued shares.

        
          
            	4.	
                    Redemption

                  

          

        

        
          
            	

                  	(a)	
                    Subject to the provisions of paragraph (8), the Corporation, upon giving notice as herein provided, may redeem all or any part of the Series H Preferred Shares by the payment of
                      an amount in cash for each share to be redeemed equal to:

                  

          

        

        
          
            	

                  	(i)	
                    $25.00 in the case of a redemption on a Series H Conversion Date on or after September 30, 2024, or

                  

          

        

        
          
            	

                  	(ii)	
                    $25.50 in the case of a redemption on any other date after September 30, 2024 that is not a Series H Conversion Date, (such amount being the “redemption

                        amount”) plus, in the case of each of (i) and (ii), all accrued and unpaid dividends thereon, which for such purpose shall be calculated on a pro rata basis for the period from and including the last Dividend Payment Date on
                      which dividends on the Series H Preferred Shares have been paid to but excluding the date fixed for redemption (the whole constituting the “cash redemption price”).  For the purposes of
                      subsection 191(4) of the Income Tax Act (Canada) or any successor or replacement provision of similar effect, the amount specified in respect of each Series H Preferred Share is $25.00.

                  

          

        

        
          
            
              
                	 	
                        (b)

                      	
                        In any case of redemption of Series H Preferred Shares under the provisions of this paragraph (4), the Corporation shall, at least 30 days and not more than 60 days before the date specified for
                          redemption, mail to each person who at the date of mailing is a registered holder of Series H Preferred Shares to be redeemed a written notice of the intention of the Corporation to redeem such Series H Preferred Shares.  Such
                          notice shall be mailed in a prepaid letter addressed to each such holder at the holder’s address as it appears on the books of the Corporation or, in the event of the address of any such holder not so appearing, to the last known
                          address of such holder; provided, however, that accidental failure to give any such notice to one or more of such holders shall not affect the validity of such redemption.  Such notice shall set out the cash redemption price and
                          the date on which redemption is to take place and, if part only of the Series H Preferred Shares held by the person to whom it is addressed is to be redeemed, the number so to be redeemed.  On or after the date so specified for
                          redemption the Corporation shall pay or cause to be paid to or to the order of the registered holders of the Series H Preferred Shares to be redeemed

                        

                      

              

               

              

              
                Page 19 of 28

                
                  

              

              
                	 	
                        

                        

                      	
                        the cash redemption price on presentation and surrender at the head office of the Corporation or any other place designated in such notice of the certificates for the Series H Preferred Shares
                          called for redemption, subject to the provisions of paragraph (14).  Such payment shall be made by cheque payable at par at any branch of the Corporation’s bankers in Canada.  Such Series H Preferred Shares shall then be and be
                          deemed to be redeemed and shall be restored to the status of authorized but unissued shares.  If a part only of the shares represented by any certificate shall be redeemed, a new certificate for the balance shall be issued at the
                          expense of the Corporation.  From and after the date specified in any such notice, the Series H Preferred Shares called for redemption shall cease to be entitled to dividends and the holders shall not be entitled to exercise any
                          of the rights of holders in respect thereof unless payment of the cash redemption price shall not be made upon presentation of certificates in accordance with the foregoing provisions, in which case the rights of the holders shall
                          remain unaffected.  The Corporation shall have the right, at any time after the mailing of notice of its intention to redeem any Series H Preferred Shares, to deposit the cash redemption price of the shares so called for
                          redemption, or of such of the shares represented by certificates that have not at the date of such deposit been surrendered by the holders in connection with such redemption, to a special account in any chartered bank or any trust
                          company in Canada named in such notice, to be paid without interest to or to the order of the respective holders of such Series H Preferred Shares called for redemption upon presentation and surrender to such bank or trust company
                          of the certificates representing such shares.  Upon such deposit being made or upon the date specified for redemption in such notice, whichever is the later, the Series H Preferred Shares in respect of which such deposit shall
                          have been made shall then be and be deemed to be redeemed and shall be restored to the status of authorized but unissued shares and the rights of the holders after such deposit or such redemption date shall be limited to receiving
                          without interest their proportionate part of the total cash redemption price so deposited against presentation and surrender of the certificates held by them respectively.  Any interest allowed on any such deposit shall belong to
                          the Corporation and any unclaimed funds remaining on deposit on the sixth anniversary date of the redemption shall be returned to the Corporation.  Subject to such provisions of the Canada Business Corporations Act as may be
                          applicable, in case a part only of the then outstanding Series H Preferred Shares is at any time to be redeemed, the shares so to be redeemed shall be selected by lot in such manner as the Board of Directors or the transfer agent
                          and registrar, if any, appointed by the Corporation in respect of such shares shall decide, or, if the Board of Directors so decides, such shares may be redeemed pro rata (disregarding fractions).

                      

              

            

          

        

        
          
            	5.	
                    Conversion into Series G Preferred Shares

                  

          

        

        
          
            
              
                	 	
                        (a)

                      	
                        The Series H Preferred Shares shall not be convertible prior to September 30, 2024.  Holders of Series H Preferred Shares shall have the right to convert on each Series H Conversion Date, subject to
                          the provisions hereof, all or any of their Series H Preferred Shares into Series G Preferred Shares on the basis of one Series G Preferred Share for each Series H Preferred Share.  The Corporation shall, not more than 60 days and
                          not less than 30 days prior to the applicable Series H Conversion Date, give notice in writing in accordance with the provisions in subparagraph 2(b) to the then registered holders of the Series H

                        

                      

              

               

              

              
                Page 20 of 28

                
                  

              

              
                	 	

                      	
                        Preferred Shares of the conversion right provided for in this paragraph (5), which notice shall set out the Series H Conversion Date and instructions to such holders as to the method by which such
                          conversion right may be exercised.  On the 30th day prior to each Series H Conversion Date, the Corporation shall give notice in writing to the then registered holders of the Series H Preferred Shares of the Annual Fixed Dividend
                          Rate for the Series G Preferred Shares for the next succeeding Subsequent Fixed Rate Period and the Floating Quarterly Dividend Rate for the Series H Preferred Shares for the next succeeding Quarterly Floating Rate Period.  Such
                          notice shall be delivered in accordance with the provisions of subparagraph (2)(b).

                      

              

            

          

        

        
          
            	

                  	(b)	
                    If the Corporation gives notice as provided in paragraph (4) to the holders of the Series H Preferred Shares of the redemption of all of the Series H Preferred Shares, then the
                      right of a holder of Series H Preferred Shares to convert such Series H Preferred Shares shall terminate effective on the date of such notice and the Corporation shall not be required to give the notice specified in subparagraph (a)
                      of this paragraph (5).

                  

          

        

        
          
            	

                  	(c)	
                    Holders of Series H Preferred Shares shall not be entitled to convert their shares into Series G Preferred Shares if the Corporation determines that there would remain outstanding
                      on a Series H Conversion Date less than 1,000,000 Series G Preferred Shares, after having taken into account all Series H Preferred Shares tendered for conversion into Series G Preferred Shares and all Series G Preferred Shares
                      tendered for conversion into Series H Preferred Shares, and the Corporation shall give notice in writing thereof in accordance with the provisions of subparagraph (2)(b) to all affected registered holders of the Series H Preferred
                      Shares at least seven days prior to the applicable Series H Conversion Date and shall issue and deliver, or cause to be delivered, prior to such Series H Conversion Date, at the expense of the Corporation, to such holders of Series H
                      Preferred Shares who have surrendered for conversion any certificate or certificates representing Series H Preferred Shares, certificates representing the Series H Preferred Shares represented by any certificate or certificates so
                      surrendered.

                  

          

        

        
          
            	

                  	(d)	
                    If the Corporation determines that there would remain outstanding on a Series H Conversion Date less than 1,000,000 Series H Preferred Shares, after having taken into account all
                      Series H Preferred Shares tendered for conversion into Series G Preferred Shares and all Series G Preferred Shares tendered for conversion into Series H Preferred Shares, then all of the remaining outstanding Series H Preferred Shares
                      shall be converted automatically into Series G Preferred Shares on the basis of one Series G Preferred Share for each Series H Preferred Share on the applicable Series H Conversion Date and the Corporation shall give notice in writing
                      thereof in accordance with the provisions of subparagraph (2)(b) to the then registered holders of such remaining Series H Preferred Shares at least seven days prior to the Series H Conversion Date.

                  

          

        

        
          
            
              
                	 	
                        (e)

                      	
                        The conversion right may be exercised by a holder of Series H Preferred Shares by notice in writing, in a form satisfactory to the Corporation (the “Series H Conversion Notice”), which notice must
                          be received by the transfer agent and registrar for the Series H Preferred Shares at the principal office in Toronto or Calgary of such transfer agent and registrar not earlier than the 30th day prior to, but not later than 5:00
                          p.m. (Toronto time) on the 15th day preceding, a Series H

                      

              

               

              

              
                Page 21 of 28

                
                  

              

              
                	 	
                        

                        

                      	
                        Conversion Date.  The Series H Conversion Notice shall indicate the number of Series H Preferred Shares to be converted and shall be accompanied by payment or evidence of payment of applicable
                          taxes.  Once received by the transfer agent and registrar on behalf of the Corporation, the election of a holder to convert is irrevocable.  Except in the case where the Series G Preferred Shares are in the Book-Based System, if
                          the Series G Preferred Shares are to be registered in a name or names different from the name or names of the registered holder of the Series H Preferred Shares to be converted, the Series H Conversion Notice shall contain written
                          notice in form and execution satisfactory to such transfer agent and registrar directing the Corporation to register the Series G Preferred Shares in some other name or names (the “Series H Transferee”) and stating the name or
                          names (with addresses) accompanied by payment to the transfer agent and any registrar of any transfer taxes which may be payable by reason thereof, and a written declaration, if required by the Corporation or by applicable law, as
                          to the residence and share ownership status of the Series H Transferee and such other matters as may be required by such law in order to determine the entitlement of such Series H Transferee to hold such Series G Preferred Shares.

                      

              

            

          

        

        
          
            	

                  	(f)	
                    If all remaining outstanding Series H Preferred Shares are to be converted into Series G Preferred Shares on the applicable Series H Conversion Date as provided for in
                      subparagraph (d) of this paragraph (5), the Series H Preferred Shares that holders have not previously elected to convert shall be converted on the Series H Conversion Date into Series G Preferred Shares and the holders thereof shall
                      be deemed to be holders of Series G Preferred Shares at 5:00 p.m. (Toronto time) on the Series H Conversion Date and shall be entitled, upon surrender during regular business hours at the
                      principal office in Toronto or Calgary of the transfer agent and registrar of the Corporation of the certificate or certificates representing Series H Preferred Shares not previously surrendered for conversion, to receive a
                      certificate or certificates representing the same number of Series G Preferred Shares in the manner and subject to the provisions of this paragraph (5) and paragraph (14).

                  

          

        

        
          
            	

                  	(g)	
                    Subject to subparagraph (h) of this paragraph (5) and paragraph (14), as promptly as practicable after the Series H Conversion Date the Corporation shall deliver or cause to be
                      delivered certificates representing the Series G Preferred Shares registered in the name of the holders of the Series H Preferred Shares to be converted, or as such holders shall have directed, on presentation and surrender at the
                      principal office in Toronto or Calgary of the transfer agent and registrar for the Series H Preferred Shares of the certificate or certificates for the Series H Preferred Shares to be converted.  If only a part of such Series H
                      Preferred Shares represented by any certificate shall be converted, a new certificate for the balance shall be issued at the expense of the Corporation.  From and after the date specified in any Series H Conversion Notice, the Series
                      H Preferred Shares converted into Series G Preferred Shares shall cease to be outstanding and shall be restored to the status of authorized but unissued shares, and the holders thereof shall cease to be entitled to dividends and shall
                      not be entitled to exercise any of the rights of holders in respect thereof unless the Corporation, subject to paragraph (14) shall fail to deliver to the holders of the Series H Preferred Shares to be converted share certificates
                      representing the Series G Preferred Shares into which such shares have been converted.

                  

          

        

        
          
            

            

            
              Page 22 of 28

              
                

            

            
              
                	 	
                        (h)

                      	
                        The obligation of the Corporation to issue Series G Preferred Shares upon conversion of any Series H Preferred Shares shall be deferred during the continuance of any one or more of the following
                          events:

                      

              

            

          

        

        
          
            	

                  	(i)	
                    the issuing of such Series G Preferred Shares is prohibited pursuant to any agreement or arrangement entered into by the Corporation to assure its solvency or continued operation;

                  

          

        

        
          
            	

                  	(ii)	
                    the issuing of such Series G Preferred Shares is prohibited by law or by any regulatory or other authority having jurisdiction over the Corporation that is acting in conformity
                      with law; or

                  

          

        

        
          
            	

                  	(iii)	
                    for any reason beyond its control, the Corporation is unable to issue Series G Preferred Shares or is unable to deliver Series G Preferred Shares.

                  

          

        

        
          
            	

                  	(i)	
                    The Corporation reserves the right not to deliver Series G Preferred Shares to any person that the Corporation or its transfer agent and registrar has reason to believe is a
                      person whose address is in, or that the Corporation or its transfer agent and registrar has reason to believe is a resident of any jurisdiction outside Canada if such delivery would require the Corporation to take any action to comply
                      with the securities laws of such jurisdiction.  In those circumstances, the Corporation shall hold, as agent of any such person, all or the relevant number of Series G Preferred Shares, and the Corporation shall attempt to sell such
                      Series G Preferred Shares to parties other than the Corporation and its affiliates on behalf of any such person.  Such sales (if any) shall be made at such times and at such prices as the Corporation, in its sole discretion, may
                      determine.  The Corporation shall not be subject to any liability for failure to sell Series G Preferred Shares on behalf of any such person at all or at any particular price or on any particular day.  The net proceeds received by the
                      Corporation from the sale of any such Series G Preferred Shares shall be delivered to any such person, after deducting the costs of sale and any applicable withholding taxes, by cheque or in any other manner determined by the
                      Corporation.

                  

          

        

        
          
            	6.	
                    Liquidation, Dissolution or Winding-up

                  

          

        

        In the event of a Liquidation, the holders of the Series H Preferred Shares shall be entitled to receive $25.00 per Series H
          Preferred Share plus all accrued and unpaid dividends thereon, which for such purpose shall be calculated on a pro rata basis for the period from and including the last Dividend Payment Date on which dividends on the Series H Preferred Shares
          have been paid to but excluding the date of such Liquidation, before any amount shall be paid or any property or assets of the Corporation shall be distributed to the holders of the Common Shares or to the holders of any other shares ranking
          junior to the Series H Preferred Shares in any respect.  After payment to the holders of the Series H Preferred Shares of the amount so payable to them, they shall not, as such, be entitled to share in any further distribution of the property or
          assets of the Corporation.

        
          
            	7.	
                    Voting Rights

                  

          

        

        The holders of the Series H Preferred Shares shall not be entitled to receive notice of or to attend any meeting of the
          shareholders of the Corporation and shall not be entitled to vote at any such meeting unless and until the Corporation fails to pay in the aggregate six quarterly 

        
          Page 23 of 28

          
            

        

        dividends on the Series H Preferred Shares pursuant to paragraph (2) hereof on the dates when the same should be paid, whether or
          not consecutive, and whether or not such dividends have been declared and whether or not there are any moneys of the Corporation properly applicable to the payment of dividends; thereafter, but only for so long as any dividends on the Series H
          Preferred Shares remain in arrears, the holders of the Series H Preferred Shares shall be entitled to one vote for each full $25.00 of subscription price of the Series H Preferred Shares held by them and in addition shall be entitled, voting
          separately and exclusively as a combined class with the holders of all series of First Preferred Shares who at such time are entitled to vote for the election of directors, to elect two members of the board of directors if the board consists of
          less than sixteen directors or three members of the board of directors if the board consists of sixteen or more directors.  Notwithstanding anything contained in the by-laws of the Corporation, the term of office of all persons who may be
          directors of the Corporation at any time when the right to elect directors shall accrue to the holders of the Series H Preferred Shares as provided in this paragraph or who may be appointed as directors thereafter and before a meeting of
          shareholders shall have been held shall terminate upon the election of directors at the next annual meeting of shareholders or at a special meeting of shareholders which may be held for the purpose of electing directors at any time after the
          accrual of such right to elect directors upon not less than 21 days’ written notice and which shall be called by the Secretary of the Corporation upon the written request of the holders of record of at least one-tenth of the aggregate
          subscription price of the then outstanding First Preferred Shares then entitled to vote for the election of directors; in default of the calling of such special meeting by the Secretary within five days after the making of such request such
          meeting may be called by any holder of record of First Preferred Shares then entitled to vote for the election of directors.  Any vacancy occurring among the members of the board elected to represent the holders of any First Preferred Shares in
          accordance with the foregoing provisions of this paragraph may be filled by the board with the consent and approval of a remaining director elected to represent the holders of First Preferred Shares but if there be no such remaining director the
          board may elect sufficient members to fill the vacancy or vacancies.  Whether or not such vacancies are so filled by the board, the holders of record of at least one-tenth of the aggregate subscription price of the then outstanding First
          Preferred Shares entitled to vote for the election of directors shall have the right to require the Secretary of the Corporation to call a meeting of the holders of First Preferred Shares entitled to vote for the election of directors for the
          purpose of filling the vacancies or replacing all or any of the persons filling such vacancies who have been appointed by the directors when there is no director in office who has been elected to represent the holders of the First Preferred
          Shares entitled to vote for the election of directors.  Notwithstanding anything contained in the by-laws of the Corporation, (1) upon any termination of the said right to elect directors, the term of office of the directors elected or appointed
          to represent the holders of First Preferred Shares entitled to vote for the election of directors shall forthwith terminate and (2) it shall not be necessary for a person to be a holder of First Preferred Shares in order to qualify for election
          or appointment as a director of the Corporation to represent the holders of First Preferred Shares as described hereunder.

        
          
            	8.	
                    Restrictions on Partial Redemption or Purchase

                  

          

        

        So long as any of the Series H Preferred Shares are outstanding, the Corporation shall not call for redemption, purchase, reduce
          or otherwise pay for less than all the Series H Preferred Shares and all other preferred shares then outstanding ranking prior to or on a parity with the Series H Preferred Shares with respect to payment of dividends unless all dividends up to
          and including the dividends payable on the last preceding dividend payment dates on all such shares then outstanding shall have been declared and paid or set apart for payment at the date of such call for redemption, purchase, reduction or other
          payment.

        
          Page 24 of 28

          
            

        

        
          
            	9.	
                    Restrictions on Payment of Dividends and Reduction of Junior Capital

                  

          

        

        So long as any of the Series H Preferred Shares are outstanding, the Corporation shall not:

        
          
            	

                  	(a)	
                    declare, pay or set apart for payment any dividends (other than stock dividends in shares of the Corporation ranking junior to the Series H Preferred Shares) on the Common Shares
                      or any other shares of the Corporation ranking junior to the Series H Preferred Shares with respect to payment of dividends; or

                  

          

        

        
          
            	

                  	(b)	
                    call for redemption of, purchase, reduce the stated capital maintained by the Corporation or otherwise pay for any shares of the Corporation ranking junior to the Series H
                      Preferred Shares with respect to repayment of capital or with respect to payment of dividends;

                  

          

        

        
          	

                	

                	
                  unless all dividends up to and including the dividends payable on the last preceding dividend payment dates on the Series H Preferred Shares and on all other preferred shares
                    ranking prior to or on a parity with the Series H Preferred Shares with respect to payment of dividends then outstanding shall have been declared and paid or set apart for payment at the date of any such action referred to in
                    subparagraphs 9(a) and (b). 

                

        

         

        

        
          
            	10.	
                    Issue of Additional Preferred Shares

                  

          

        

        No class of shares may be created or issued ranking as to repayment of capital or payment of dividends prior to or on a parity
          with the Series H Preferred Shares without the prior approval of the holders of the Series H Preferred Shares given as specified in paragraph (11), nor shall the number of Series H Preferred Shares be increased without such approval; provided,
          however, that nothing in this paragraph (10) shall prevent the Corporation from creating additional series of First Preferred Shares and, if all dividends then payable on the Series G Preferred Shares and Series H Preferred Shares shall have been
          paid or set apart for payment, from issuing additional series of First Preferred Shares without such approval.

        
          
            	11.	
                    Sanction by Holders of Series H Preferred Shares

                  

          

        

        The approval of the holders of the Series H Preferred Shares with respect to any and all matters referred to in these share
          provisions may be given in writing by all of the holders of the Series H Preferred Shares outstanding or by resolution duly passed and carried by not less than two-thirds of the votes cast on a poll at a meeting of the holders of the Series H
          Preferred Shares duly called and held for the purpose of considering the subject matter of such resolution and at which holders of not less than a majority of all Series H Preferred Shares then outstanding are present in person or represented by
          proxy in accordance with the by-laws of the Corporation; provided, however, that if at any such meeting, when originally held, the holders of at least a majority of all Series H Preferred Shares then outstanding are not present in person or so
          represented by proxy within 30 minutes after the time fixed for the meeting, then the meeting shall be adjourned to such date, being not less than 15 days later, and to such time and place as may be fixed by the chairman of such meeting, and at
          such adjourned meeting the holders of Series H Preferred Shares present in person or so represented by proxy, whether or not they hold a majority of all Series H Preferred Shares then outstanding, may transact the business for which the meeting
          was originally called, and a resolution duly passed and carried by not less than two-thirds of the votes cast on a poll at such adjourned meeting shall constitute the approval of the holders of the Series H Preferred Shares, Notice of any such
          original meeting of the holders of the Series H Preferred Shares shall be given not less than 15 days prior to the 

        
          Page 25 of 28

          
            

        

        date fixed for such meeting and shall specify in general terms the purpose for which the meeting is called, and notice of any such
          adjourned meeting shall be given not less than 10 days prior to the date fixed for such adjourned meeting, but it shall not be necessary to specify in such notice the purpose for which the adjourned meeting is called.  The formalities to be
          observed with respect to the giving of notice of any such original meeting or adjourned meeting and the conduct of it shall be those from time to time prescribed in the by-laws of the Corporation with respect to meetings of shareholders.  On
          every poll taken at any such original meeting or adjourned meeting, each holder of Series H Preferred Shares present in person or represented by proxy shall be entitled to one vote for each of the Series H Preferred Shares held by such holder.

        
          
            	12.	
                    Tax Election

                  

          

        

        The Corporation shall elect, in the manner and within the time provided under subsection 191.2(1) of the Income Tax Act (Canada) or any successor or replacement provision of similar effect, to pay tax at a rate, and shall take all other action necessary under such Act, such that no holder of Series H Preferred Shares shall be
          required to pay tax on dividends received on the Series H Preferred Shares under section 187.2 of such Act or any successor or replacement provision of similar effect.  Nothing in this paragraph shall prevent the Corporation from entering into an
          agreement with a taxable Canadian corporation with which it is related to transfer all or a portion of the Corporation’s liability for tax under section 191.1 of the Income Tax Act (Canada) to that
          taxable Canadian corporation in accordance with the provisions of section 191.3 of such Act.

        
          
            	13.	
                    Withholding Tax

                  

          

        

        Notwithstanding any other provision of these share provisions, the Corporation may deduct or withhold from any payment,
          distribution, issuance or delivery (whether in cash or in shares) to be made pursuant to these share provisions any amounts required or permitted by law to be deducted or withheld from any such payment, distribution, issuance or delivery and
          shall remit any such amounts to the relevant tax authority as required.  If the cash component of any payment, distribution, issuance or delivery to be made pursuant to these share provisions is less than the amount that the Corporation is so
          required or permitted to deduct or withhold, the Corporation shall be permitted to deduct and withhold from any non-cash payment, distribution, issuance or delivery to be made pursuant to these share provisions any amounts required or permitted
          by law to be deducted or withheld from any such payment, distribution, issuance or delivery and to dispose of such property in order to remit any amount required to be remitted to any relevant tax authority.  Notwithstanding the foregoing, the
          amount of any payment, distribution, issuance or delivery made to a holder of Series H Preferred Shares pursuant to these share provisions shall be considered to be the amount of the payment, distribution, issuance or delivery received by such
          holder plus any amount deducted or withheld pursuant to this paragraph (13).

        Holders of Series H Preferred Shares shall be responsible for all withholding taxes under Part XIII of the Income Tax Act (Canada) in respect of any payment, distribution, issuance or delivery made or credited to them pursuant to these share provisions and shall indemnify and hold harmless the Corporation on an
          after-tax basis for any such taxes imposed on any payment, distribution, issuance or delivery made or credited to them pursuant to these share provisions.

        
          Page 26 of 28

          
            

        

        
          
            	14.	
                    Book-Based System

                  

          

        

        
          
            	

                  	(a)	
                    Subject to the provisions of subparagraphs (b) and (c) of this paragraph (14) and notwithstanding the provisions of paragraphs (1) through (13) of these share provisions, the
                      Series H Preferred Shares shall be evidenced by a single fully registered Global Certificate representing the aggregate number of Series H Preferred Shares issued by the Corporation which shall be held by, or on behalf of, the System
                      Operator as custodian of the Global Certificate for the Participants and registered in the name of “CDS & CO.” (or in such other name as the System Operator may use from time to time as its nominee for purposes of the Book-Based
                      System), and registrations of ownership, transfers, surrenders and conversions of Series H Preferred Shares shall be made only through the Book-Based System.  Accordingly, subject to subparagraph (c) of this paragraph (14), no
                      beneficial holder of Series H Preferred Shares shall receive a certificate or other instrument from the Corporation or the System Operator evidencing such holder’s ownership thereof, and no such holder shall be shown on the records
                      maintained by the System Operator except through a book-entry account of a Participant acting on behalf of such holder.

                  

          

        

        
          
            	

                  	(b)	
                    Notwithstanding the provisions of paragraphs (1) through (13), so long as the System Operator is the registered holder of the Series H Preferred Shares:

                  

          

        

        
          
            	

                  	(i)	
                    the System Operator shall be considered the sole owner of the Series H Preferred Shares for the purposes of receiving notices or payments on or in respect of the Series H
                      Preferred Shares or the delivery of Series G Preferred Shares and certificates therefor upon the exercise of rights of conversion; and

                  

          

        

        
          
            	

                  	(ii)	
                    the Corporation, pursuant to the exercise of rights of redemption or conversion, shall deliver or cause to be delivered to the System Operator, for the benefit of the beneficial
                      holders of the Series H Preferred Shares, the cash redemption price for the Series H Preferred Shares or certificates for Series G Preferred Shares against delivery to the Corporation’s account with the System Operator of such
                      holders’ Series H Preferred Shares.

                  

          

        

        
          
            	

                  	(c)	
                    If the Corporation determines that the System Operator is no longer willing or able to discharge properly its responsibilities with respect to the Book-Based System and the
                      Corporation is unable to locate a qualified successor or the Corporation elects, or is required by applicable law, to withdraw the Series H Preferred Shares from the Book-Based System, then subparagraphs (a) and (b) of this paragraph
                      (14) shall no longer be applicable to the Series H Preferred Shares and the Corporation shall notify Book-Entry Holders through the System Operator of the occurrence of any such event or election and of the availability of Definitive
                      Shares to Book-Entry Holders.  Upon surrender by the System Operator of the Global Certificate to the transfer agent and registrar for the Series H Preferred Shares accompanied by registration instructions for re-registration, the
                      Corporation shall execute and deliver Definitive Shares.  The Corporation shall not be liable for any delay in delivering such instructions and may conclusively act and rely on and shall be protected in acting and relying on such
                      instructions.  Upon the issuance of Definitive Shares, the Corporation shall recognize the registered holders of such Definitive Shares and the Book-Entry 

                    

                  

          

        

        
          
            
              
                Page 27 of 28

                
                  

              

               

              

              
                	

                      	

                      	
                        Shares for which such Definitive Shares have been substituted shall be void and of no further effect.

                      

              

               

              

              
                	 	
                        (d)

                      	
                        The provisions of paragraphs (1) through (13) and the exercise of rights of redemption and conversion with respect to Series H Preferred Shares are subject to the provisions of this paragraph (14),
                          and to the extent that there is any inconsistency or conflict between such provisions, the provisions of this paragraph (14) shall prevail.

                      

              

            

          

        

        
          
            	15.	
                    Wire or Electronic Transfer of Funds

                  

          

        

        Notwithstanding any other right, privilege, restriction or condition attaching to the Series H Preferred Shares, the Corporation
          may, at its option, make any payment due to registered holders of Series H Preferred Shares by way of a wire or electronic transfer of funds to such holders.  If a payment is made by way of a wire or electronic transfer of funds, the Corporation
          shall be responsible for any applicable charges or fees relating to the making of such transfer.  As soon as practicable following the determination by the Corporation that a payment is to be made by way of a wire or electronic transfer of funds,
          the Corporation shall provide a notice to the applicable registered holders of Series H Preferred Shares at their respective addresses appearing on the books of the Corporation.  Such notice shall request that each applicable registered holder of
          Series H Preferred Shares provide the particulars of an account of such holder with a chartered bank in Canada to which the wire or electronic transfer of funds shall be directed.  If the Corporation does not receive account particulars from a
          registered holder of Series H Preferred Shares prior to the date such payment is to be made, the Corporation shall deposit the funds otherwise payable to such holder in a special account or accounts in trust for such holder.  The making of a
          payment by way of a wire or electronic transfer of funds or the deposit by the Corporation of funds otherwise payable to a holder in a special account or accounts in trust for such holder shall be deemed to constitute payment by the Corporation
          on the date thereof and shall satisfy and discharge all liabilities of the Corporation for such payment to the extent of the amount represented by such transfer or deposit.

        
          
            	16.	
                    Amendments

                  

          

        

        The provisions attaching to the Series H Shares may be deleted, varied, modified, amended or amplified by articles of amendment
          with such approval as may then be required by the Canada Business Corporations Act, with any such approval to be given in accordance with paragraph (11) and with
          any required approvals of any stock exchanges on which the Series H Shares may be listed.

      

       

      

      

      Page 28 of 28EXHIBIT 4.8

   

    

  

  

  
    TRANSALTA CORPORATION

    SHARE UNIT PLAN

    
      
        
          	
                  1.

                	
                  The Plan

                

        

         

            

      

    

    1.1          The share unit plan of TransAlta Corporation
        pursuant to which share units can be granted was established effective January 1, 2013, and is hereby amended and restated effective January 1, 2017.

    
      	
              2.

            	
              Purpose

            

    

     

          

    2.1          The purpose of the Plan is to promote a greater
        alignment of interests between designated officers and employees of the Corporation or its affiliates and holders of common shares of the Corporation generally by offering such officers and employees the opportunity to receive cash remuneration
        calculated in reference to the market value of the Shares and any applicable performance achievements, which amount of cash remuneration may then be applied towards the purchase of Shares on the open market.

    
      	
              3.

            	
              Definitions

            

    

     

          

    Whenever used herein:

    
      
        	

              	(a)	
                “Base Pay” means the base salary actually paid to a Participant, while designated as a Participant, during a fiscal year but excludes any payments for periods of deemed employment or salary continuance;

              

      

    

    
      
        	

              	(b)	
                “Board” means the Board of Directors of TransAlta;

              

      

    

    
      
        	

              	(c)	
                “CEO” means the Chief Executive Officer of TransAlta;

              

      

    

    
      
        	

              	(d)	
                “Change of Control” means the occurrence after the effective date of this Plan of any of the following:

              

      

    

    
      
        	

              	(i)	
                the sale to or acquisition by a Holder (except TransAlta or a Subsidiary) of assets of TransAlta or its Subsidiaries having a fair market value greater than 50% of the fair market value of the assets of TransAlta and its Subsidiaries
                  on a consolidated basis determined as of the date of the completion of the transaction or series of integrated transactions, whether such sale or acquisition occurs by way of a reorganization, recapitalization, consolidation,
                  amalgamation, arrangement, merger, transfer, sale, business combination or similar transaction or series of integrated transactions;

              

      

    

    
      
        	

              	(ii)	
                any Holder becoming the beneficial owner, directly or indirectly, of 50% or more of the voting securities of TransAlta, except for any such acquisition (i) by TransAlta or a Subsidiary, or (ii) by any underwriter or underwriters
                  temporarily holding voting securities pursuant to an offering of such voting securities;

              

      

    

    
      Page 1 of 8

      
        

    

    

    

    
      
        	

              	(iii)	
                any reorganization, recapitalization, consolidation, amalgamation, arrangement, merger, transfer, sale, business combination or other similar transaction or series of integrated transactions involving TransAlta, its Subsidiaries or its
                  shareholders, where record holders of the voting securities of TransAlta immediately prior to such transaction or series of transactions hold less than 50% of the voting securities of TransAlta or of the continuing entity following the
                  completion of such transaction or series of transactions; or

              

      

    

    
      
        	

              	(iv)	
                a change in the composition of the Board such that individuals who are members of the Board (the “incumbent board”) cease for any reason to constitute at least 50% of the Board, and for this purpose a new director will be considered a
                  member of the incumbent board if the appointment or nomination for election of such new director was approved by at least a majority of the incumbent board;

              

      

    

    
      
        	

              	(e)	
                “Committee” means the Human Resources Committee of the Board;

              

      

    

    
      
        	

              	(f)	
                “Corporation” means TransAlta Corporation or its Subsidiaries as the context dictates;

              

      

    

    
      
        	

              	(g)	
                “Holder” means a person, a group of persons or persons acting jointly or in concert or persons associated or affiliated, within the meaning of the Securities Act (Ontario), with any of them;

              

      

    

    
      
        	

              	(h)	
                “Incentive Compensation Level” means the target level of Share Unit Award, expressed as a percentage of base salary, assigned to a Participant’s role;

              

      

    

    
      
        	

              	(i)	
                “Participant” means a non-union employee who has been designated as a Participant by the Committee upon the advice of the CEO;

              

      

    

    
      
        	

              	(j)	
                “Performance Cycle” means a period of three fiscal years of TransAlta;

              

      

    

    
      
        	

              	(k)	
                “Performance Level(s)” means the actual levels of achievement of the Performance Metric(s) achieved by TransAlta;

              

      

    

    
      
        	

              	(l)	
                “Performance Metric(s)” means the standards or criteria, including target performance level(s), to which a Participant’s opportunity for payment under the Plan, and with respect to PSUs, is established;

              

      

    

    
      
        	

              	(m)	
                “Performance Share Units (“PSUs”)” means Units that vest based on the passage of time as well as Performance Level(s);

              

      

    

    
      
        	

              	(n)	
                “Plan” means this TransAlta Corporation Share Unit Plan, as amended or restated from time to time;

              

      

    

    
      
        	

              	(o)	
                “Restricted Share Units (“RSUs”)” means Units that vest based solely on the passage of time;

              

      

    

    
      Page 2 of 8

      
        

    

    

    

    
      
        	

              	(p)	
                “Retirement” means any circumstance (whether related to resignation, termination or otherwise) that results in a Participant meeting the criteria for retirement under a retirement plan of TransAlta or any of its Subsidiaries;

              

      

    

    
      
        	

              	(q)	
                “Share Unit Agreement” means the agreement approved by TransAlta and signed by the Participant relating to the grant of Units under the Plan as such Share Unit Agreement may be amended from time to time;

              

      

    

    
      
        	

              	(r)	
                “Share Unit Award” means the amount allocated to a Participant, expressed in dollars and calculated in accordance with Section 7 herein;

              

      

    

    
      
        	

              	(s)	
                “Share Unit Grant” means the number of Units a Participant receives at the beginning of the Performance Cycle;

              

      

    

    
      
        	

              	(t)	
                “Shares” means the common shares in the capital of the Corporation and includes any shares of the Corporation into which such common shares have been converted, reclassified, redesigned, subdivided, consolidated, exchanged or otherwise
                  changed;

              

      

    

    
      
        	

              	(u)	
                “Subsidiary” means any corporation that is a subsidiary of TransAlta (as such term is defined in the Securities Act (Ontario), in force from time to time), including any joint venture
                  partnership or limited partnership, which is directly or indirectly controlled by TransAlta;

              

      

    

    
      
        	

              	(v)	
                “Target Performance” means the target level of performance for the applicable Performance Metric(s) in the Performance Cycle;

              

      

    

    
      
        	

              	(w)	
                “Tax Laws” means any applicable legislation prescribing and assessing taxes, interest and withholdings based on income and includes the Income Tax Act (Canada), as amended from time to time
                  and the U.S. Internal Revenue Code of 1986, as amended from time to time, and the Regulations promulgated thereunder, existing case law and the Board’s understanding of the current published administrative policies and assessing practices
                  of the applicable taxing authority;

              

      

    

    
      
        	

              	(x)	
                “TransAlta” means TransAlta Corporation or its Subsidiaries as the context dictates;

              

      

    

    
      
        	

              	(y)	
                “TSX” means the Toronto Stock Exchange;

              

      

    

    
      
        	

              	(z)	
                “Termination Date” means a Participant’s last day of active employment and does not include any period of reasonable, contractual or statutory notice or any period deemed employment or salary continuance;

              

      

    

    
      
        	

              	(aa)	
                “Unit(s)” means a notional Share in TransAlta where one Unit equals the value of one Share;

              

      

    

    
      
        	

              	(bb)	
                “Vesting Date” means the date upon which the Participant is entitled to the Units, as approved by the Board or, where applicable, the CEO and as set forth in the applicable Share Unit Agreement; and

              

      

    

    
      Page 3 of 8

      
        

    

    

    

    
      
        	

              	(cc)	
                “Vested Units” means the number of Units originally granted plus any and all applicable dividend equivalents, and as adjusted by any and all applicable Performance Level(s) provided that such adjustment does not exceed 200%.

              

      

    

    
      	
              4.

            	
              Administration

            

    

     

          

    4.1          This Plan shall be administered by the Board.
        The Board shall have the right to delegate the administration and operation of the Plan, in whole or in part, to the Committee. Whenever used herein, or in the applicable Share Unit Agreement, the term “Board” shall be deemed to include the
        Committee. The Board shall act by vote or written consent of a majority of its members. Whenever the Plan authorizes the Board to take any action, make any determination or decision or form any opinion, then any such action, determination, decision
        or opinion by or of the Board shall be in the absolute discretion of the Board. The Board may correct any defect or supply any omission or reconcile any inconsistency in the Plan, in the manner and to the extent the Board deems, in its sole and
        absolute discretion, necessary or desirable. All determinations and interpretations made by the Board shall be binding upon all Participants and upon their legal and personal representatives and beneficiaries.

    4.2          The Board shall at its sole and absolute
        discretion (i) grant Units to Participants; (ii) interpret and administer the Plan; (iii) establish, amend and rescind any rules and regulations relating to the Plan; (iv) establish conditions relating to the vesting of Units; (v) set, waive and
        amend Performance Metric(s); (vi) approve Performance Level(s); and (vii) make any and all other determinations that the Board deems necessary or desirable for the administration of the Plan. The Board shall approve all Incentive Compensation
        Levels for all Participants.

    4.3          Notwithstanding the foregoing, the CEO has the
        delegated authority to grant Units to Participants below the CEO’s direct reports up to an annual maximum grant value of one million dollars in the aggregate.

    4.4          To the extent that any Unit granted to a
        Participant results in adverse or unanticipated consequences under any Tax Laws, such Unit shall be subject to such additional rules and requirements as specified by the Board from time to time in order to comply with the Tax Laws or to minimize
        the impact of the Tax Laws. If any provision of the Plan contravenes any Tax Laws or could cause the Participant to incur any tax, interest or penalties, then the Board may, in its sole discretion and without the Participant’s consent, modify such
        provision to (i) comply with, or avoid being subject to, such Tax Laws, or to avoid incurring taxes, interest or penalties under the Tax Laws, and otherwise (ii) maintain, to the maximum extent practicable, the original intent and economic benefit
        to the Participant of the applicable provision without materially increasing the cost to the Corporation or contravening Tax Laws. However, the Corporation shall have no obligation to modify the Plan or any Unit and does not guarantee that Units
        will not be subject to taxes, interest and penalties under Tax Laws.

    4.5          Units granted hereunder shall be evidenced by a
        Share Unit Agreement signed by the Participant, which agreement shall be similar in form and substance to the one attached herein as Appendix “A” to the Plan, as amended from time to time.

    
      	
              5.

            	
              Eligibility and Participation

            

    

     

          

    5.1          The individuals who may be eligible to
        participate in the Plan are non-union employees of TransAlta who, upon the advice of the CEO, are designated as Participants by the Board. Notwithstanding anything to the contrary herein, the Board shall determine when and to

    
      Page 4 of 8

      
        

    

    

    

    what extent individuals otherwise eligible for consideration shall become or cease to be Participants for purposes of this Plan and shall
      determine when, and under what circumstances, any individual shall be considered to have terminated employment for purposes of the Plan.

    5.2          The Plan does not grant to any Participant the
        right to be or to continue to be employed by TransAlta or any of its Subsidiaries. Further, the Plan does not grant to any Participant the right to receive any Share Unit Award except in accordance with the Plan. The use of the Plan to determine
        any or all of a Participant’s compensation is entirely at the discretion of the Board. The awarding of a Share Unit Award to a Participant is a matter to be determined solely in the discretion of the Board. This Section 5.2 applies notwithstanding
        any other provision of the Plan.

    5.3          The participation in the Plan by any
        Participant shall not have any effect on any executive employment agreement entered into between an executive and the Corporation. If any terms of such executive employment agreement in any way conflict with the terms of this Plan, the terms of the
        executive employment agreement will supersede this Plan.

    
      	
              6.

            	
              Determination of Share Unit Grants

            

    

     

          

    6.1          The Board shall convert a specified cash amount
        to a number of Units on the basis of the closing price of the Shares on the TSX, or on such other exchange on which the Shares may be listed, on the date immediately preceding the date of grant. To the extent required for securities law reporting
        requirements, such closing price will also be used to represent the Units’ fair market value.

    6.2          With respect to PSUs, no later than 60 days
        after the commencement of the Performance Cycle, and after consultation with the CEO, the Board shall approve the applicable Performance Metric(s) and Incentive Compensation Levels.

    6.3          When the Corporation declares a dividend on
        Shares, the Participant shall be granted additional Units, or fractional Units as the case may be, with such number of additional Units or fractional Units being determined by converting the cash value of the dividends attributable to the Units to
        a number of Units or fractional Units, on the basis of the closing price of the Shares on the TSX, or on such other exchange on which the Shares may be listed, on the trading day on which the dividends were paid on the Shares.

    6.4          The Corporation, or an independent
        administrator as designated by the Corporation, shall maintain a notional account on behalf of each Participant and the number of Units granted to each Participant, including those granted in lieu of dividends, shall be credited to the
        Participant’s account.

    
      	
              7.

            	
              Determination of Share Unit Awards

            

    

     

          

    7.1          Upon the Vesting Date and subject to Section 8,
        the Participant shall be entitled to receive their Share Unit Award equal to:

    
      
        	

              	(i)	
                the number of Vested Units, multiplied by

              

      

    

    
      
        	

              	(ii)	
                the value of a Share on the Vesting Date, being the closing price of the Shares on the TSX on the trading day immediately prior to the Vesting Date. Provided that if the Shares are not listed on the TSX, the value of

              

      

    

    
      Page 5 of 8

      
        

    

    

    

    a Share on the Vesting Date shall be established by the Board based on a price per Unit of any other public
      exchange on which the Shares are listed, or if the Shares are not listed on any public exchange, by the Board acting in good faith

    7.2          With respect to PSUs, no later than 60 days
        after the end of the Performance Cycle, the Board shall approve the Performance Level(s) achieved by TransAlta as it relates to the Performance Metric(s) provided that the maximum Performance Level(s) applicable to PSUs equals 200% of Target
        Performance, subject to any Board discretion and any and all adjustments made by the Board.

    7.3          Provided that the information required to
        determine the Performance Level(s) has been approved by the Board, TransAlta shall within 90 days of the end of the Performance Cycle pay to the Participant an amount equal to the Share Unit Award calculated in accordance with Section 7.1, subject
        to Section 8, less any applicable taxes or other deductions which TransAlta is required by law to make, with respect to the Participant’s Share Unit Award.

    7.4          Notwithstanding the foregoing, the payment of
        any Share Unit Award shall be subject to the satisfaction of the condition precedents that such Participant refrain from engaging in any activity which, in the opinion of the Board or the CEO, is inimical or contrary to the bests interests of
        TransAlta.

    
      	
              8.

            	
              Purchase of Shares

            

    

     

          

    8.1          Except where not permitted by law, the
        Corporation may specify that a Share Unit Award in respect of a Participant is to be applied towards the purchase of Shares on the open market, in which case the Corporation shall designate a broker who is independent of the Corporation and who
        acts as an agent for the Participant to purchase Shares on the open market. The Corporation shall, as soon as practicable, transfer to the broker the Share Unit Award, less the deduction of applicable taxes and other source deductions. The broker
        shall then purchase Shares in its sole discretion and shall control the time, amount and manner of all purchases of Shares and notify the Participant or the Participant’s personal representative, as applicable, and the Corporation of: (a) the
        aggregate purchase price for the Shares, (b) the purchase price per Share, and (c) the amount of any related brokerage commission. The cash value remaining after the purchase of the Shares will be paid to the Participant no later than 90 days
        following the Vesting Date. The Corporation shall pay all brokerage commissions in connection with the purchase of the Shares.

    
      	
              9.

            	
              Ceasing to be an Employee

            

    

     

          

    9.1          Subject to Section 5.3 and unless otherwise
        determined by the Board, if the employment of a Participant is terminated by reason of Retirement or death prior to the Vesting Date, then the Participant, or the Participant’s designated representative in the case of death, shall be paid their
        Share Unit Award as calculated by multiplying the number of non-vested Units in the Participant’s account by a fraction where the numerator shall be the number of months between the Grant Date and the Termination Date and the denominator shall be
        the number of months between Grant Date and Vesting Date, which shall then be multiplied by the closing share price on the Termination Date. With respect to PSUs, the Performance Level(s) achieved at the end of the quarter preceding the
        Participant’s Termination Date shall also be applied. Subject to Section 5.3 and unless otherwise determined by the Board, if the employment of a Participant is terminated by reason of Retirement or death following the Vesting Date but prior to the
        Share Unit

    
      Page 6 of 8

      
        

    

    

    

    Award being paid out, then the Participant, or the Participant’s designated representative in the case of death, shall be paid their Share Unit Award in accordance
      with Section 7.

    9.2          Subject to Section 5.3 and unless otherwise
        determined by the Board, if the employment of a Participant is terminated by reason of termination without cause, other than in the case of a Retirement, prior to the Vesting Date, then the Participant shall be paid their Share Unit Award as
        calculated by multiplying the number of non-vested Units in the Participant’s account by a fraction where the numerator shall be the number of months between the Grant Date and the Termination Date and the denominator shall be the number of months
        between Grant Date and Vesting Date, which shall then be multiplied by the closing share price on the Termination Date. With respect to PSUs, the lower of target and Performance Level(s) achieved at the end of the quarter preceding the
        Participant’s Termination Date shall also be applied. Subject to Section 5.3 and unless otherwise determined by the Board, if the employment of a Participant is terminated by reason of termination without cause, other than in the case of a
        Retirement, following the Vesting Date but prior to the Share Unit Award being paid out, then the Participant, shall be paid their Share Unit Award in accordance with Section 7.

    9.3          Subject to Section 5.3 and unless otherwise
        determined by the Board, if the employment of a Participant is terminated by reason of voluntary resignation, other than in the case of a Retirement, or termination with cause prior to the Share Unit Award being paid, regardless if the Units have
        vested, then the Participant will forfeit their Share Unit Award(s).

    9.4          Notwithstanding the foregoing, if a Participant
        holds share units issued as a result of the deferral provisions as per the Corporation’s Trading and Sales Incentive Plan, and if termination by reason of Retirement occurs, then the Participant’s applicable share units shall be treated in
        accordance with the Trading and Sales Incentive Plan.

    
      	
              10.

            	
              Anti-Dilution

            

    

     

          

    10.1          If the number of outstanding Shares of the
        Corporation shall be increased or decreased as a result of a share split, consolidation or re-capitalization and not as a result of the issuance of Shares for additional consideration or by way of share or stock dividend, the Board shall make the
        appropriate adjustments to the number of Units held by a Participant. Any determinations by the Board as to the required adjustments shall be made in its sole discretion and all such adjustments shall be conclusive and binding for all purposes
        under the Plan.

    
      	
              11.

            	
              Change of Control

            

    

     

          

    11.1          Subject to Section 5.3, in the event of a
        Change of Control, such as a proposed merger or amalgamation of TransAlta with one or more other corporations, an offer by any person to purchase all of the outstanding Shares of TransAlta, a sale or distribution of all or substantially all of
        TransAlta’s assets to any other person or any arrangement or corporate reorganization not otherwise provided for herein, the Board shall, in a fair and equitable manner, determine the manner in which Share Unit Awards shall be calculated for all
        Participants. The Board may make such adjustments to the Plan and to any Units outstanding under the Plan as the Board may, in its sole discretion, consider appropriate in the circumstances to prevent substantial dilution or enlargement of the
        rights granted to Participants hereunder, including making appropriate provisions for the adjustment of the number of Units held by a Participant and the continuance of the Plan following a Reorganization or vesting, redemption and termination of
        all Units granted to a Participant and using such adjustment in respect of specific performance criteria. Any determinations by the Board as to the required adjustments upon a Change of Control, shall be

    
      Page 7 of 8

      
        

    

    
    made in its sole discretion and all such adjustments shall be conclusive and binding for all purposes under the Plan.

    
      	
              12.

            	
              Rights of a Participant to Continued Employment

            

    

     

          

    12.1          Neither the selection of any person as a
        Participant nor the granting of any Units to any Participant under the Plan shall (i) confer upon such Participant any right to continue as an employee of the Corporation or any of its subsidiaries or associated or affiliated entities, or (ii) be
        construed as a guarantee that the Participant will continue as an employee of the Corporation or any of its subsidiaries or associated or affiliated entities, as the case may be.

    
      	
              13.

            	
              Rights of a Participant to Receive Shares

            

    

     

          

    13.1          No person entitled to Units hereunder shall,
        by virtue of the grant of Units have any entitlement to receive any Shares or have any rights of a shareholder of the Corporation.

    
      	
              14.

            	
              Transferability

            

    

     

          

    14.1          All Units and all benefits accruing to any
        Participant in accordance with the terms and conditions of the Plan shall be neither transferable nor assignable unless specifically provided herein. During the lifetime of a Participant, the Share Unit Award for any Units granted hereunder shall
        only enure to the benefit of such Participant and in the event of the death of a Participant, to the person or persons to whom the Participant’s Units under the Plan pass by the Participant’s will or applicable law.

    
      	
              15.

            	
              Amendment and Termination of Plan

            

    

     

          

    15.1          The Board may, at any time, suspend or
        terminate the Plan. The Board may also at any time amend or revise the terms of the Plan, provided that no such amendment or revision shall in any manner materially adversely affect any rights of any Participant under the Plan theretofore granted
        under the Plan without such Participant’s consent.

    
      	
              16.

            	
              Withholding of Tax

            

    

     

          

    16.1          The Corporation shall be entitled to deduct
        from any payment under the Plan, including the Share Unit Award, the amount of any tax, withholding, interest or penalty applicable to such payment or may require any Participant to pay such amount to the Corporation prior to and as a condition of
        making such payment.

    
      	
              17.

            	
              Interpretation

            

    

     

          

    17.1          This Plan will be governed by and construed in
        accordance with the laws of the Province of Alberta and the laws of Canada applicable therein.

    

    

    

    

    Page 8 of 8

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