Document:

Exhibit 10.1

 

EXECUTION
COPY

 

SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement ) is entered into on July 29, 2009, by
and among The Children’s Place Retail Stores, Inc., a Delaware corporation
(the “Company”), on the one hand, and Ezra Dabah (“Dabah”) and
each of the additional parties listed on Annex A attached hereto (each,
a “Seller” and, together with Dabah, the “Sellers”), on the other
hand.  The Company and the Sellers are
sometimes hereinafter referred to each individually as a “Party” and
collectively as the “Parties.”

 

WHEREAS, the Sellers own
certain shares of the Common Stock, par value $0.10 per share, of the Company
(“Common Stock”) as set forth on Annex A attached hereto under
the column “Shares Owned as of the Date Hereof;”

 

WHEREAS, the Sellers desire
to sell to the Company, and the Company is willing to purchase from the
Sellers, an aggregate of 2,451,315 shares of Common Stock held by the Sellers
as set forth on Annex A attached hereto under the column “Number of
Shares to be Sold at Closing” (the “Shares”), upon the terms and subject
to the conditions set forth in this Agreement;

 

WHEREAS, the Sellers desire
to have the option to have an aggregate of 2,452,258 shares of Common Stock
held by the Sellers as set forth on Annex A attached hereto under the
column “Registrable Shares,” registered pursuant to the Securities Act of 1933,
as amended, and the rules and regulations promulgated by the Securities
and Exchange Commission thereunder (the “Securities Act”), for sale
pursuant to an underwritten public offering; and

 

WHEREAS, the Company has
received all the necessary consents and approvals of its lenders in order to
execute this agreement and consummate the purchase of the Shares.

 

NOW, THEREFORE, in consideration
of the mutual representations, warranties, covenants and agreements herein
contained, the Parties agree as follows:

 

ARTICLE
I

 

PURCHASE
AND SALE OF SHARES

 

Section 1.1  Purchase
and Sale of Shares.  Upon the terms
and subject to the conditions set forth in this Agreement, the Sellers agree to
sell, grant, convey, assign, transfer and deliver to the Company, and the
Company agrees to purchase and acquire from the Sellers (the “Sale”), at
the Closing (as defined below), all right, title and interest in and to the
Shares, free and clear of any Liens (as defined below).  In consideration for the Sale, at the
Closing, the Company shall pay each Seller an amount in cash equal to $28.88
per share, multiplied by the number of Shares to be sold by such Seller at
Closing (the “Purchase Price”).

 

Section 1.2  Closing.  Subject to the satisfaction of the conditions
set forth in Article IV, the Company and the Sellers shall
consummate the sale of the Shares at a closing (the “Closing”) to take
place at the offices of Weil, Gotshal & Manges LLP, located at 767
Fifth Avenue, New York, New York, on August 3, 2009, at 10:00 a.m.,
New York Time, or at such other time and place or on such other date as the
Sellers and the Company may mutually agree to in writing (such date and time of
Closing being herein collectively referred to as the “Closing Date”).  At the Closing, (i) the Sellers will
deliver or cause to be delivered to the Company the Shares (through book entry
transfer or duly endorsed or accompanied by stock powers duly executed in blank
to the extent the Shares are in certificated form) and (ii) the Company
shall deliver the Purchase Price pursuant to Section 1.1 to the
Sellers by wire transfer of 

 

 

immediately available funds
to an account designated in writing by the Sellers one (1) Business Day
(as defined below) prior to the Closing Date.

 

ARTICLE
II

 

REPRESENTATIONS
AND WARRANTIES

 

Section 2.1 Sellers’
Representations and Warranties.  The Sellers represent and warrant to the
Company, on a joint and several basis, that the statements contained in this Section 2.1
are true, correct and complete as of the date of this Agreement and will be
true, correct and complete as of the Closing Date (as though made as of the
Closing Date).

 

(a) The
Agreement.  This Agreement has been
duly authorized, executed and delivered by the Sellers.  This Agreement constitutes the legal, valid
and binding obligation of the Sellers, enforceable against the Sellers in
accordance with its terms and conditions. 
Except for filings and notices required under the Exchange Act and
pursuant to customary margin accounts, the Sellers need not give any notice to,
make any filing with, or obtain any authorization, consent or approval of any
person or entity, including, without limitation, any government or governmental
entity or agency, in order to execute and deliver this Agreement or consummate
the transactions contemplated by this Agreement.

 

(b) Ownership
of Shares.  The Sellers hold of
record and/or beneficially own the Shares as set forth on Annex A and,
except for such shares which are pledged pursuant to customary margin accounts,
such shares are free and clear of any mortgage, deed of trust, pledge,
hypothecation, lien, charge, covenant, condition, easement, encumbrance,
option, warrant, claim, demand, interest or any other title defect, charge or
restriction of any kind (each, a “Lien”).  The Sellers will hold of record and/or
beneficially own the Shares as set forth on Annex A, and, as of the
Closing, such shares shall be free and clear of any Liens.  The Sellers are not a party to any option,
warrant, purchase right or other contract or commitment (other than this
Agreement) that could require the Sellers to sell, transfer, or otherwise
dispose of any of the Shares.

 

(c) All
Authorizations Obtained.  The Sellers
have the legal right and power, and all authorizations and approvals required
by law to enter into this Agreement, to sell, transfer and deliver all of the
Shares pursuant to this Agreement and to comply with his other obligations hereunder.

 

(d) Non-Contravention;
No Further Authorizations or Approvals Required.  The execution and delivery by the Sellers of,
and the performance by the Sellers of their obligations under, this Agreement (i) will
not conflict with or constitute a breach of, or default under, with or without
notice or the passage of time, any other agreement or instrument to which any
of the Sellers is a party or by which any of the Sellers are or may be bound or
under which any of the Sellers are or may be entitled to any right or benefit, (ii) will
not result in any violation of any statute, law, regulation, order or decree
applicable to the Sellers of any court, regulatory body, administrative agency,
governmental body, arbitrator or other authority having jurisdiction over any
of the Sellers or their respective properties, except in the case of clauses (i) and
(ii) as would not individually or in the aggregate be reasonably expected
to impair in any material respect the ability of the Sellers to consummate the
transactions contemplated by this Agreement, or (iii) will not result in
the imposition or creation of any Lien upon or with respect to the Shares.  No consent, approval, authorization or other
order of, or registration or filing with, any court or other governmental
authority or agency, is required for the consummation by any of the Sellers of
the transactions contemplated in this Agreement, except such as (A) have
been obtained or made in connection with the Sale and are in full force and
effect and (B) will be obtained or made in connection with the
underwritten offering contemplated in Section 5.2(a) hereof
under the Securities Act, applicable state securities or blue sky laws and from
FINRA and the Nasdaq Stock Market.

 

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(e) No
Further Consents, etc.  No consent,
approval or waiver is required under any instrument or agreement to which any
of the Sellers are a party or by which any of the Sellers are or may be bound
or under which any of the Sellers are or may be entitled to any right or
benefit, in connection with the offering, sale or purchase by the Company of
any of the Shares which may be sold by the Sellers under this Agreement or the
consummation by any of the Sellers of any of the other transactions contemplated
hereby.

 

(f) Brokers.
Except as disclosed on Schedule 2.1(f), the Sellers have no liability to
pay any fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement.

 

(g) Experience
and Information.  Each of the Sellers
has experience as investors in securities of companies and have such knowledge
and experience in financial or business matters to be capable of evaluating the
merits and risks of the Sale pursuant to this Agreement and protecting his, her
or its own interests in connection with such Sale.  The Sellers have had an opportunity to ask
questions and receive answers from the Company regarding the terms and
conditions of the Sale and the business, properties, prospects and financial
condition of the Company and to obtain any additional information requested and
has received and considered all information the Sellers deem relevant to make
an informed decision regarding the Sale.

 

Section 2.2  The Company’s
Representations and Warranties.  The Company represents and warrants to the
Sellers that the statements contained in this Section 2.2 are
correct and complete as of the date of this Agreement and will be correct and
complete as of the Closing Date (as though made as of the Closing Date).

 

(a) The
Agreement.  The Agreement has been
duly authorized, executed and delivered by the Company.  This Agreement constitutes the legal, valid
and binding obligation of the Company, enforceable against the Company in
accordance with its terms and conditions. 
The Company need not give any notice to, make any filing with, or obtain
any authorization, consent, or approval of any person or entity, including,
without limitation, any government or governmental entity or agency in order to
execute and deliver this Agreement or consummate the transactions contemplated
by this Agreement.

 

(b) All
Authorizations Obtained.  The Company
has the legal right and power, and all authorizations and approvals required by
law and under its charter or by-laws or other organizational documents to enter
into this Agreement, to purchase all of the Shares pursuant to this Agreement
and to comply with its other obligations hereunder.

 

(c) 
Non-Contravention; No Further Authorizations or Approvals Required.  The execution and delivery by the Company of,
and the performance by the Company of its obligations under, this Agreement (i) will
not result in any default under, or require the consent of any other party to,
the charter or by-laws or other organizational documents of the Company, (ii) will
not conflict with or constitute a breach of, or default under, with or without
notice or the passage of time, any other agreement or instrument to which the
Company is or may be a party or by which it is or may be bound or under which
it is entitled to any right or benefit and (iii) will not result in any
violation of any statute, law, regulation, order or decree applicable to the
Company of any court, regulatory body, administrative agency, governmental
body, arbitrator or other authority having jurisdiction over the Company or its
properties, except in the case of clauses (ii) and (iii) as would not
individually or in the aggregate be reasonably expected to impair in any
material respect the ability of the Company to consummate the transactions
contemplated by this Agreement.  No
consent, approval, authorization or other order of, or registration or filing
with, any court or other governmental authority or agency, is required for the
consummation by the 

 

3

 

Company
of the transactions contemplated in this Agreement, except such as (A) have
been obtained or made in connection with the Sale and are in full force and
effect and (B) will be obtained or made in connection with the
underwritten offering contemplated in Section 5.2(a) hereof,
under the Securities Act, applicable state securities or blue sky laws and from
FINRA (as defined below) and the Nasdaq stock market.

 

(d) Brokers’ Fees.  The Company has no liability to pay any fees
or commissions to any broker, finder, or agent with respect to the transactions
contemplated by this Agreement for which the Sellers could become liable or
obligated.

 

ARTICLE
III

 

COVENANTS

 

Section 3.1  Further
Assurances.  The Sellers and the
Company hereby agree to execute and deliver such certificates, instruments and
other documents, and to take all other actions, as may be reasonably requested
by the other Party in order to carry out, evidence or give effect to the
transactions contemplated by this Agreement, including, without limitation, the
Sale.

 

Section 3.2 Expenses. Except as
otherwise expressly provided herein, the Sellers and the Company shall each pay
their own expenses (including, without limitation, legal expenses) incurred in
connection with the transactions contemplated by this Agreement, including,
without limitation, the Sale.

 

Section 3.3  Standstill; Non-Disparagement; Voting.

 

(a)  During the
Standstill Period, the Sellers agree that neither they nor any of their
affiliates, agents, associates or representatives shall, unless specifically
invited in writing by the Company, directly or indirectly, in any manner:

 

(i) acquire, offer or
propose to acquire or agree to acquire, directly or indirectly, alone or in
concert with others, by purchase or otherwise, any direct or indirect
beneficial interest in any voting securities of the Company or direct or
indirect rights, warrants or options to acquire, or securities convertible into
or exchangeable for, any voting securities of the Company (other than the purchase
of Common Stock in connection with the exercise of any outstanding stock
options and the acquisition of Common Stock pursuant to deferred stock awards
held by Dabah as of the date hereof, or by way of stock dividends or other
distributions or offerings made available to holders of Common Stock generally
on a pro rata basis, provided that any such securities so received will
be subject to the provisions of this Section 3.3);

 

(ii) make, or in any
way participate in, directly or indirectly, alone or in concert with others,
any “solicitation” of “proxies” to vote (as such terms are used in the proxy rules of
the Securities and Exchange Commission (the “SEC”) promulgated pursuant
to Section 14 of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), or seek to advise or influence in any manner whatsoever any Person
with respect to the voting of, any voting securities of the Company;

 

(iii) form, join or in
any way participate in a “group” within the meaning of Section 13(d)(3) of
the Exchange Act with respect to any voting securities of the Company;

 

4

 

(iv) acquire, offer to
acquire or agree to acquire, directly or indirectly, alone or in concert with
others, by purchase, exchange or otherwise, (i) any of the assets,
tangible or intangible, of the Company or any of its affiliates or (ii) direct
or indirect rights, warrants or options to acquire any assets of the Company or
any of its affiliates;

 

(v) arrange, or in any
way participate, directly or indirectly, in any financing for the purchase of
any voting securities of the Company or any securities convertible into or
exchangeable or exercisable for any voting securities or assets of the Company;

 

(vi) otherwise act,
alone or in concert with others, to seek to propose to the Company or any of
its stockholders any merger, business combination, restructuring,
recapitalization or other transaction to or with the Company or otherwise seek,
alone or in concert with others, to control, change or influence the
management, board of directors or policies of the Company or nominate any
person as a director who is not nominated by the then incumbent directors, or
propose any matter to be voted upon by the stockholders of the Company;

 

(vii) take any action that
might result in the Company having to make a public announcement regarding any
of the matters referred to in clauses (i) through (vi) of this Section 3.3(a);
or

 

(viii) request a waiver
from the Company in connection with, or announce an intention to do, or enter
into any arrangement or understanding or discussions with others to do, any of
the actions restricted or prohibited under clauses (i) through (vi) of
this Section 3.3(a).

 

(b) From
and after the date hereof, neither the Sellers nor the Company nor any of its
officers or directors shall make, or cause to be made, any statement or
announcement that relates to and constitutes an ad hominem attack on or
otherwise disparages, the other Party (and, in the case of the Company, its
current or future officers or directors); provided, however, that
this non-disparagement provision shall not in any way prevent the Company or
the Sellers from disclosing any information to their attorneys or in response
to a lawful subpoena or court order requiring disclosure of such information or
otherwise disclosing any information as required by law; provided, further,
that this non-disparagement provision shall not in any way restrict Dabah or
his agents in their statements to other directors of the Company or at meetings
of the Company’s board of directors, during his membership on the board of
directors.

 

(c) The
Sellers shall abstain from voting all shares of Common Stock which they are
entitled to vote at the 2009 Annual Meeting of Stockholders of the Company, or
any adjournments thereof (the “2009 Meeting”), or vote all such shares
in favor of the election of each of the directors nominated by the Company’s
board of directors at the 2009 Meeting; in any case, the Sellers shall be
present at the 2009 Meeting, either in person or by proxy.  The Sellers shall abstain from voting all
shares of Common Stock which they are entitled to vote, or vote all such shares
in opposition, with respect to any proposal (whether by proxy solicitation or
otherwise) that is not recommended by the Board at the 2009 Meeting or any
meeting of stockholders up to and including the 2010 Annual Meeting of
Stockholders, provided the Standstill Period is then in effect.

 

(d) 
“Standstill Period” shall mean twelve (12) months from the date of this
Agreement; provided that if the Offering is not consummated due to the
failure of the Company to comply with any of its material obligations pursuant
to this Agreement, then the Standstill Period shall terminate on the date
specified by Dabah as the date of termination of the Offering.

 

5

 

Section 3.4  Director
Resignations.  On the Closing Date,
Dabah and Stanley Silverstein shall each deliver to the Company their
resignations from the Board of Directors of the Company, effective as of the
Closing Date, in form and substance reasonably acceptable to the Company.

 

Section 3.5  SEC Filings.  The Sellers covenant to timely file a Form 4
and an amendment to Schedule 13D with the SEC reporting the execution of this
Agreement and the consummation of the transactions hereby, each in accordance
with the Exchange Act.

 

Section 3.6 Transfer of
Common Stock.  The Sellers
shall select, in their sole discretion, the particular shares of Common Stock
(including Common Stock received upon the exercise of stock options or the
vesting of deferred stock awards (such stock, “Compensation Stock”))
that will be transferred to the Company in the Sale and the shares that will
constitute Registrable Shares, provided that all Compensation Stock
shall constitute Registrable Shares.  The
Company shall treat the Sellers’ identification of Common Stock as Shares or
Registrable Shares consistently for all purposes.

 

ARTICLE IV

 

CONDITIONS
TO OBLIGATION TO CLOSE

 

Section 4.1  Conditions
to Obligation to Close.  The
obligation of each of the Company and the Sellers to consummate the Sale is
subject to satisfaction of the following conditions at and as of the Closing: (i) with
respect to the obligations of the Company, the representations and warranties
set forth in Section 2.1 above, and with respect to the obligations
of the Sellers, the representations and warranties set forth in Section 2.2
above, shall be true and correct in all material respects at and as of the
Closing Date as if such representations and warranties had been made on and as
of the Closing Date, (ii) there shall not be any injunction, judgment,
order decree or ruling in effect prohibiting or otherwise preventing
consummation of the transactions contemplated under this Agreement, and (iii) with
respect to the obligations of the Company, Dabah and Stanley Silverstein shall
have delivered the resignations described in Section 3.4 to the
Company.

 

ARTICLE V

 

REGISTRATION OF COMMON
STOCK

 

Section 5.1 Certain Defined
Terms.  For purposes of this
Agreement, the following terms shall have the meanings specified in this Section 5.1.

 

“Affiliate” means,
with respect to any Person, any Person who, directly or indirectly through one
or more intermediaries, controls, is controlled by or is under common control
with any Person.

 

“Business Day” means
a day other than a Saturday, Sunday or other day on which commercial banks are
authorized or required to close under the laws of the United States or the
State of New York.

 

“FINRA” means the
Financial Industry Regulatory Authority.

 

“Person” or “person”
means any individual, corporation, partnership, limited liability company,
joint venture, association, joint-stock company, trust, unincorporated
organization or government or other agency or political subdivision thereof.

 

6

 

“register,”
“registered” and “registration” refer to a registration effected
by preparing and filing a registration statement in compliance with the
Securities Act, and the declaration or ordering of the effectiveness of such
registration statement.

 

“Registrable Shares”
means, at any time, the Common Stock of the Company beneficially owned by the
Sellers on the date hereof and shares underlying stock options held by Dabah,
after giving effect to the Sale as provided herein.

 

Section 5.2 Registration.

 

(a) The Company shall
file a Registration Statement on Form S-3 ASR (or other appropriate form
for which the Company is eligible) to effect the registration under the
Securities Act of the Registrable Shares in a firm commitment underwritten
offering (together with related options granted to the underwriter of such
offering, the “Offering”) no earlier than September 8, 2009 and no
later than September 30, 2009 and shall use all commercially reasonable
efforts to cause the same to be declared effective by the SEC as promptly as
reasonably practicable after such filing; provided, however,
that:

 

(i) the
Company shall be permitted to defer the filing (but not the preparation) of the
registration statement for a period of up to 30 days from September 30,
2009 if the Company or any of its Subsidiaries are engaged in confidential
negotiations or other confidential business activities or are otherwise in
possession of material non-public information of the Company, the disclosure of
which would be required in such registration statement (but would not be
required if such registration statement were not filed), and the Board of
Directors of the Company determines in good faith that such disclosure would be
detrimental to the Company and its stockholders (a “Significant Company
Development”).  A deferral of the
filing of a registration statement pursuant to this Section 5.2(a)(i) shall
be lifted, and the registration statement shall be filed forthwith, if, in the
case of a deferral pursuant to the preceding sentence, the negotiations or
other activities are disclosed or terminated or the information is no longer
material or has been publicly disclosed. 
In order to defer the filing of the registration statement the Company
shall promptly (but in any event within ten (10) days), upon determining
to seek such deferral, deliver to the Sellers a certificate signed by an
executive officer of the Company stating that the Company is deferring such
filing pursuant to this Section 5.2(a)(i) and a general
statement of the reason for such deferral and an approximation of the
anticipated delay.  The Company may defer
the filing of the registration statement pursuant to this Section 5.2(a)(i) only
once; and

 

(ii) the
Sellers shall be permitted to require the Company to defer the filing (but not
the preparation) of the registration statement for a period of up to 30 days
from September 30, 2009 if the Sellers so determine in their sole
discretion.  In order to defer the filing
of the registration statement the Sellers shall promptly (but in any event
within ten (10) days), upon determining to seek such deferral, deliver to
the Company a certificate signed by a representative of the Sellers stating
that the Sellers are deferring such filing pursuant to this Section 5.2(a)(ii) and
a general statement of the reason for such deferral and an approximation of the
anticipated delay.  The Sellers may defer
the filing of the registration statement only once.

 

(b) The Company, the underwriters and the
Sellers shall reasonably cooperate to determine the precise date of filing of
the registration statement. The Company shall be entitled to select the
underwriters for the Offering and shall offer Moelis & Company LLC (“Moelis”)
the role of co-manager for the Offering. If Moelis elects to participate in the
Offering, the Company will, and will cause the lead underwriter to, provide
Moelis with full access to all information and data relating to the Offering,
including the “selling book,” and shall allow Moelis to fully participate in
the underwriting process and decision-making for the Offering.

 

7

 

(c) No Seller may
include securities in the registration statement filed pursuant to the terms of
this Agreement unless such Seller (i) agrees to sell such Seller’s
Registrable Shares on the basis provided in the underwriting arrangements
described herein and (ii) completes and executes all reasonable
questionnaires, powers of attorney, indemnities, underwriting agreements,
custody agreements, and other documents reasonably required under the terms of
such underwriting arrangements.

 

(d) No securities to be sold for the account of
any Person other than the Sellers shall be included in the registration
statement pursuant to the terms of this Agreement.

 

(e) Notwithstanding the foregoing, the Parties
agree that nothing in this Agreement creates any obligation on the part of any
Seller to sell shares in the Offering, and any and all of the Sellers shall have
the right at any time to elect not to sell any Registrable Shares in the
Offering or otherwise and shall have the right to sell any or all of the
Registrable Shares outside of the Offering pursuant to Rule 144 under the
Securities Act, in private transactions or otherwise.

 

Section 5.3 Company
“Lock-up”.  To the
extent required by the managing underwriter of the Offering, the Company in
connection with the Offering, to enter into a “lock-up” agreement on customary
terms and for such duration as shall be agreed between the Company and the
managing underwriter.

 

Section 5.4 Registration
Procedures.  To effect
the registration and the sale of the Registrable Shares in the Offering in
accordance with the terms hereof, and pursuant hereto, the Company will use
commercially reasonable efforts to:

 

(a) prepare and file
with the SEC such amendments, post-effective amendments and supplements to such
registration statement and the prospectus used in connection therewith as may
be necessary to keep such registration statement effective for a sufficient
period of time to consummate the Offering and comply with the provisions of the
Securities Act with respect to the Offering; provided that the Company
will not be required to keep such registration statement effective if the
Offering is not consummated within forty-five (45) days after the initial
effective date of such registration statement;

 

(b) furnish to the
Sellers and the underwriter of the Offering such number of copies of such
registration statement, each amendment and supplement thereto, the prospectus
included in such registration statement (including each preliminary
prospectus), any prospectus supplements, any preliminary prospectus
supplements, any free-writing prospectus, any documents incorporated by reference
therein and such other documents as the Sellers or such underwriter may
reasonably request in order to consummate the Offering;

 

(c) use its
commercially reasonable efforts to register or qualify the Registrable Shares
under the other securities or blue sky laws of the jurisdictions as the
managing underwriter reasonably requests, use its commercially reasonable
efforts to keep each such registration or qualification (or exemption
therefrom) effective for a sufficient period of time to consummate the Offering
and do any and all other acts and things which may be reasonably necessary or
advisable to consummate the Offering in such jurisdictions (provided, however,
that the Company will not be required to (i) qualify generally to do
business in any jurisdiction where it would not otherwise be required to
qualify but for this subparagraph or (ii) consent to general service of
process or become subject to taxation in any such jurisdiction);

 

(d) promptly notify the
Sellers and the underwriter (i) when a prospectus or any prospectus
supplement or post-effective amendment has been filed and, with respect to the
registration statement or any post-effective amendment, when the same has
become effective, (ii) of the issuance by any state securities or other
regulatory authority of any order suspending the qualification or exemption
from qualification of any of the Registrable Shares under state securities or
“blue sky” laws or the initiation of

 

8

 

any proceedings for that purpose and (iii) of
the happening of any event which makes any statement made (A) in a
registration statement untrue or which requires the making of any changes in
such registration statement so that they will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, and (B) in
a prospectus, prospectus supplement or free-writing prospectus untrue or which
requires the making of any changes in such prospectus, prospectus supplement or
free-writing prospectus so that they will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements, in the light of the circumstances under which they were made, not
misleading, and, as promptly as practicable thereafter, prepare and file with
the SEC and furnish a supplement or amendment to such prospectus so that, as
thereafter deliverable to the purchasers of such Registrable Shares, such
prospectus will not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading;

 

(e) the Company shall
cooperate with the Sellers, any underwriter, and any of their respective
attorneys, accountants or other agents or representatives to enable them to
perform reasonable and satisfactory due diligence on the Company and its
operations in connection with the Offering;

 

(f) enter into an underwriting agreement
containing representations, warranties, covenants and agreements (including,
without limitation, indemnities), conditions and other terms and conditions as
are reasonable and customary for public offerings of similar size and scope as
the Offering;

 

(g) furnish to the
Sellers a signed counterpart of (i) the opinion letter or opinion letters
of counsel to the Company and (ii) the comfort letter or comfort letters
from the Company’s independent public accountants, delivered to the underwriter
of the Offering, or a letter entitling the Sellers to rely on such opinion
letters or comfort letters as if they were addressed to the Sellers;

 

(h) cause the
Registrable Shares to be listed on each securities exchange, if any, on which
the Company Stock sold in the Offering is then listed;

 

(j) reasonably
cooperate with the Sellers and each underwriter participating in the
disposition of such Registrable Shares and their respective counsel in
connection with any filings required to be made with the FINRA;

 

(k) during the period
when the prospectus is required to be delivered under the Securities Act,
promptly file all documents required to be filed with the SEC pursuant to
Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act;

 

(l) notify the Sellers
promptly of any request by the SEC for the amending or supplementing of such
registration statement or prospectus or for additional information;

 

(m) prepare and file
with the SEC promptly any amendments or supplements to such registration
statement or prospectus which, in the opinion of counsel for the Company or the
managing underwriter, is required in connection with the Offering;

 

(n) enter into such
agreements as are customary in connection with the Offering; and

 

(o) advise the Sellers,
promptly after it shall receive notice or obtain knowledge thereof, of the
issuance of any stop order by the SEC suspending the effectiveness of such
registration statement or the initiation or threatening of any proceeding for
such purpose and promptly use its best efforts to prevent

 

9

 

the issuance of any stop order or to obtain its
withdrawal at the earliest possible moment if such stop order should be issued.

 

Section 5.5 Registration
Expenses.  All
expenses incident to the Company’s performance of or compliance with this Article V,
including, without limitation, all registration and filing fees, all fees and
expenses associated with filings required to be made with the FINRA, as may be
required by the rules and regulations of the FINRA, fees and expenses of
compliance with securities or “blue sky” laws, printing expenses (including
expenses of printing certificates for the Registrable Shares in a form eligible
for deposit with Depository Trust Company and of printing prospectuses if the
printing of prospectuses is requested by the underwriter), messenger and
delivery expenses, the Company’s internal expenses (including, without
limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), listing fees, fees and expenses of counsel for the
Company and its independent certified public accountants (including the
expenses of any special audit or “cold comfort” letters required by or incident
to such performance) (all such expenses being herein called “Registration
Expenses”) will be borne by the Company whether or not any registration
statement becomes effective; provided, however, that in no event
shall Registration Expenses include any underwriting discounts, commissions or
fees attributable to the sale of the Registrable Shares or any counsel,
accountants or other persons retained or employed by the Sellers or any taxes
imposed on the Sellers under applicable law with respect to the sale and
delivery of the Registrable Securities in connection with an underwritten
offering, all of which fees and expenses will be the sole responsibility of the
Sellers.

 

ARTICLE VI

 

INDEMNIFICATION

 

Section 6.1            Indemnification.

 

(a)  From and after the
Closing Date, the Company shall indemnify and hold harmless each of the Sellers
and their respective attorneys, advisors, agents, trustees and representatives
(each, a “Seller Indemnified Party” and together the “Seller
Indemnified Parties”) from and against all losses, liabilities, claims,
demands, judgments, damages fines, suits, actions, costs and expenses,
including reasonable attorney’s fees actually imposed on, sustained, incurred
or suffered by, or asserted against the Seller Indemnified Parties (“Losses”)
by any third-party (including through derivative actions and claims against the
Seller Indemnified Parties by the persons identified by Dabah and the Committee
of Concerned Shareholders of The Childrens’ Place (the “Committee”) as
nominees for election to the Company’s Board of Directors at the Company’s 2009
Annual Meeting (the “Nominees”), each member of the Committee and each
of the participants in the Committee’s solicitation of proxies in connection
with the Company’s 2009 Annual Meeting, and each of their respective
affiliates, heirs, executors, administrators, trustees, attorneys, agents,
representatives and advisors, including without limitation, legal, financial,
and public relations advisors and proxy solicitors) arising out of (i) the
execution and delivery of this Agreement or consummation of the transactions
contemplated by this Agreement, except to the extent that such Loss results,
directly or indirectly, from Dabah’s intentional or willful misconduct, (ii) the
proxy solicitation (and all matters related thereto) conducted by the Sellers
in connection with the Company’s 2009 Annual Meeting, or (iii) based upon,
arising out of, related to or resulting from (A) any untrue or alleged
untrue statement of a material fact contained in any registration statement or
any amendment thereof or supplement thereto, or any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading or (B) any untrue or alleged untrue
statement of a material fact contained in any prospectus, preliminary
prospectus, free-writing prospectus or any amendment thereof or supplement
thereto, or any omission or alleged omission of a material fact required to be
stated therein or necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading, except
insofar as any such statements are

 

10

 

made in reliance upon and in
conformity with information furnished in writing to the Company by the Sellers
for use therein, unless, in the case of clause (iii), to the extent that
indemnification is prohibited as a matter of law.

 

(b)  From and after the
Closing Date, the Sellers shall indemnify the Company and its employees,
advisors, agents, representatives, directors and officers and each Person who
controls the Company (within the meaning of the Securities Act or the Exchange
Act), on a joint and several basis, against any and all Losses resulting from (x) any
untrue statement or alleged untrue statement of a material fact contained in
the registration statement or any amendment thereof or supplement thereto, or
any omission or alleged omission of a material fact required to be stated
therein or necessary to make the statements therein not misleading or (y) any
untrue or alleged untrue statement of a material fact contained in any
prospectus, preliminary prospectus, free-writing prospectus or any amendment
thereof or supplement thereto, or any omission or alleged omission of a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading, but only to
the extent that such untrue statements or alleged untrue statement or omission
or alleged omission is contained in any information or affidavit so furnished
in writing by any of the Sellers specifically for inclusion in the registration
statement, except to the extent that indemnification is not permitted as a
matter of law; provided, that such liability will be limited to the net
amount received by the Sellers from the sale of Registrable Shares pursuant to
such registration statement.

 

(c)  In connection with
any indemnification provided for in this Section 6.1, the Party
seeking indemnification (the “Indemnitee”) will give the other Party
(for purposes of this section, the “Indemnitor”) prompt written notice
that the Indemnitee has suffered or incurred, or may suffer or incur, any
Losses for which it may be entitled to indemnification under this Section 6.1,
and the facts constituting the basis for, or relating to, such claim and the
projected amount of such Losses (in each case, in reasonable detail) and with
respect to any action made or commenced by a third party for which indemnification
is being sought (a “Third-Party Claim”), such notice will be given no
later than thirty (30) calendar days following receipt by the Indemnitee of
written notice of such Third-Party Claim. The failure by any Indemnitee to so
notify the applicable Indemnitor will not relieve such Indemnitor of any
Liability under this Agreement except to the extent that such failure
prejudices such Indemnitor in any material respect. The Indemnitee will deliver
to the Indemnitor as promptly as practicable, and in any event within five (5) business
days after Indemnitee’s receipt, copies of all notices, court papers and other
documents received by the Indemnitee relating to any Third-Party Claim.

 

(d)  After receipt of a
notice pursuant to Section 6.1(c) with respect to any
Third-Party Claim, the Indemnitor will be entitled, if it so elects, to take
control of the defense and investigation with respect to such Third-Party Claim
and to employ and engage attorneys reasonably satisfactory to the Indemnitee to
handle and defend such claim, at the Indemnitor’s cost, risk and expense, upon
written notice to the Indemnitee of such election.  The Indemnitor will not settle any
Third-Party Claim that is the subject of indemnification without the written
consent of the Indemnitee, which consent will not be unreasonably withheld,
conditioned or delayed; provided, however, that, after reasonable
notice, the Indemnitor may settle a claim without the Indemnitee’s consent if
such settlement (i) makes no admission or acknowledgment of liability or
culpability with respect to the Indemnitee and (ii) includes a complete
release of the Indemnitee. The Indemnitee will cooperate in all reasonable
respects with the Indemnitor and its attorneys in the investigation, defense,
trial and settlement of any lawsuit or action with respect to such claim and
any appeal arising therefrom (including the filing in the Indemnitee’s name of
appropriate cross-claims and counterclaims). 
The Indemnitee may, at its own cost, participate in any investigation,
trial and defense of any Third-Party Claim controlled by the Indemnitor and any
appeal arising therefrom, including participating in the process with respect
to the potential settlement or compromise thereof.  If  the
Indemnitee has been advised by counsel that there may be one or more legal
defenses available to the Indemnitee that conflict with those available to, or
that are not available to, the Indemnitor (“Separate Legal Defenses”),
or that there may be actual or potential differing or conflicting interests
between the Indemnitor and the Indemnitee in the conduct of the defense of such
Third-Party Claim, the Indemnitee 

 

11

 

will have the right, at the
expense of the Indemnitor, to engage separate counsel reasonably acceptable to
the Indemnitor, and the Indemnitor will not have the right to control the
defense or investigation of such Separate Legal Defenses available to such
Indemnitee.  If, pursuant to the
preceding sentence, the Indemnitee is entitled to separate legal counsel at the
expense of the Company, the Company shall advance all expenses incurred by the
Indemnitee in defense of or settlement of any claim that may be subject to a
right of indemnification hereunder within 30 days after the receipt by the
Company of a statement or statements by the Indemnitee requesting such advance
or advances from time to time, whether prior to or after the final disposition
of the claim.  If the Company is the
Indemnitor, the Company shall not be required to advance or pay the fees and
expenses of more than one counsel (plus appropriate local counsel) for the
Sellers.  If the Sellers are the
Indemnitor, the Sellers shall not be required to advance or pay the fees and
expenses of more than one counsel (plus appropriate local counsel) for all
Indemnitees.

 

(e)  If, after receipt
of a notice pursuant to Section 6.1(c), the Indemnitor does not
undertake to defend any such claim within thirty (30) days of receipt of such
notice, the Indemnitee may, but will have no obligation to, contest any lawsuit
or action with respect to such claim, and the Indemnitor will be bound by the
result obtained with respect thereto by the Indemnitee. The Indemnitee may not
settle any lawsuit or action with respect to which the Indemnitee is entitled
to indemnification hereunder without the consent of the Indemnitor, which
consent will not be unreasonably withheld, conditioned or delayed.

 

(f) The indemnification provided for under this
Agreement will remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnitee or any officer, director or controlling
Person of such Indemnitee and will survive the transfer of securities.

 

(g) The right of the Sellers to the
indemnification provided herein shall be cumulative of, and in addition to, any
and all rights to which the Sellers may otherwise be entitled by contract or as
a matter of law or equity and shall extend to such Sellers’ successors, assigns
and legal representatives.  The Company
hereby covenants and agrees that it will not amend, modify or terminate or seek
to amend, modify or terminate any of the provisions of any of the
organizational documents or agreements of the Company in effect as of the date
hereof in any manner that limits the right to indemnification to which the
Sellers would otherwise be entitled thereunder, including, without limitation,
under Article Twelve of the Amended and Restated Certificate of
Incorporation of the Company, dated July 29, 2008 (the “Certificate of
Incorporation”) and Article VI of the Fourth Amended and Restated
Bylaws of the Company (the “Bylaws”).

 

ARTICLE VII

 

MISCELLANEOUS

 

Section 7.1  Mutual
Releases.

 

(a) Each Seller does
hereby expressly fully release and forever discharge the Company, its
subsidiaries, affiliates, successors and assigns, its and their respective
current and former officers, directors, employees and agents and each of its
and their respective successors and assigns (each individually, a “Company
Released Party”) from any and all rights, claims, causes of action,
warranties, demands, debts, obligations, liabilities, costs, attorneys’ fees,
expenses, suits, losses, and causes of action (“Claims”) of any kind or
nature whatsoever whether asserted or unasserted, that such Seller has had,
could have had or may have had against a Company Released Party from the
beginning of time to the date of this Agreement.  The Sellers hereby irrevocably covenant to
refrain from asserting any claim or demand, or commencing, instituting or
causing to be commenced, any proceeding of any kind against any Company
Released Party based upon any such Claim. 
Notwithstanding the foregoing, Dabah is not releasing the Company from
any of the Company’s obligations owed to Mr. Dabah under the Amended 

 

12

 

and Restated Employment
Agreement between the Company and Dabah, dated as of May 12, 2006 (the “Employment
Agreement”), the Letter Agreement between the Company and Dabah, dated April 8,
2008, the Indemnity Agreement between Dabah and the Company, dated as of June 27,
2008, any of the Company’s employee benefit plans in which Dabah participates
or is a beneficiary, any directors’ and officers’ insurance maintained by the
Company, the Certificate of Incorporation or the Bylaws, and nothing herein
shall limit the Sellers’ right to enforce the terms of this Agreement.

 

(b) The Company, for
itself and on behalf of each Company Released Party, does hereby expressly
fully release and forever discharge each of the Sellers (each individually, a “Seller
Released Party”) from any and all Claims of any kind or nature whatsoever
whether asserted or unasserted, that each Company Released Party has had, could
have had or may have had against each Seller Released Party from the beginning
of time to the date of this Agreement. 
The Company, on behalf of itself and the Company Released Parties,
hereby irrevocably covenants to refrain from asserting any claim or demand, or
commencing, instituting or causing to be commenced, any proceeding of any kind
against the Sellers based upon any such Claim.

 

(c) The parties hereto
hereby acknowledge and agree that the Company Released Parties and the  Seller Released Parties are intended third
party beneficiaries of the provisions of this Section 7.1 and may
take any and all action to enforce the obligations and agreements of the
releasing parties set forth herein.

 

(d) The
Company agrees that it will exchange a mutual release in the form annexed
hereto as Schedule 7.1(d) with each Nominee, each member of the
Committee and each participant in the Committee’s solicitation of proxies in
connection with the Company’s 2009 Annual Meeting who provides such a release
to the Company within twenty-one (21) days of the date hereof.

 

Section 7.2  Public
Announcements.  Each Party
shall consult with the other before issuing any press release or making any
public announcement or statement with respect to this Agreement or the other
Party and shall not issue any such press release or make any such public
announcement or statement without the prior written consent of the other Party
with respect to the substance (but not the exact language) of such press
release, announcement or statement, which consent shall not be unreasonably
withheld, delayed or conditioned; provided, however, that the Company
may, without the prior consent of the other Party hereto, issue any such press
release or make any such public announcement or statement as may be required by
law or the rules and regulations of the Nasdaq if the Company first
notifies and (if practicable) consults with the Sellers regarding the timing
and substance of such press release or public announcement or statement, and
the Sellers may, without the prior consent of the other Parties hereto, make
any filings as may be required by the federal securities laws if the Sellers
first notify and (if practicable) consults with the Company regarding the
timing and substance of such filing.

 

Section 7.3  Entire
Agreement; Amendment.  This
Agreement constitutes the entire agreement among the Parties and supersedes any
prior understandings, agreements, or representations by or among the Parties,
written or oral, to the extent they relate in any way to the subject matter
hereof; provided, that nothing set forth herein shall have any effect on
the outstanding obligations of the Parties set forth in that certain Amended
and Restated Employment Agreement, dated as of May 12, 2006, between the
Parties. Neither this Agreement nor any provision hereof may be amended,
changed or waived other than by a written instrument signed by the Party
against who enforcement of any such amendment, change or waiver is sought.

 

Section 7.4  Notices. All demands,
notices, requests, consents, and communications hereunder shall be in writing
and shall be deemed to have been duly given if delivered personally or by
courier service, messenger, facsimile or, if duly deposited in the mails, by
certified or registered mail, postage prepaid-return receipt requested, and
shall be deemed to have been duly given or made: (a) upon delivery, 

 

13

 

if delivered personally or
by courier service or messenger, in each case with record of receipt; (b) upon
transmission with confirmed delivery, if sent by facsimile or telecopy; or (c) when
received after being sent by certified or registered mail, postage pre-paid,
return receipt requested, to the following addresses or such other addresses as
may be furnished hereafter by notice in writing, to the following parties:

 

	
  If
  to the Company:

  
	
   

  
	
  The
  Children’s Place Retail Stores, Inc.

  
	
  915
  Secaucus Road

  
	
  Secaucus,
  New Jersey 07094

  
	
  Attn: Chuck
  Crovitz, Chief Executive Officer

  
	
   

  
	
  With
  a copy (which shall not constitute notice) to:

  
	
   

  
	
  Weil,
  Gotshal and Manges LLP 

  767 Fifth Ave. 

  New York, New York 10153 

  Fax: 212-310-8007 

  Attn: Michael J. Aiello, Esq.

  
	
   

  
	
  If
  to the Sellers:

  
	
   

  
	
  Ezra
  Dabah

  
	
  120
  Central Park South

  
	
  New
  York, New York 10019

  
	
   

  
	
  With
  a copy (which shall not constitute notice) to:

  
	
  Cadwalader,
  Wickersham & Taft LLP 

  One World Financial Center 

  New York, New York 10281 

  Fax: 212-504-6666 

  Attn: Dennis J. Block, Esq.

  

 

Section 7.5 Succession and
Assignment.  This
Agreement shall be binding upon and inure to the benefit of the Parties named
herein and their respective successors (including heirs, executors and
administrators) and permitted assigns. 
No Party may assign either this Agreement or any of his, her, or its
rights, interests, or obligations hereunder without the prior written approval
of the other Party; provided, however, that the Company may (i) assign
any or all of its rights and interests hereunder to one or more of its
wholly-owned subsidiaries and (ii) designate one or more of its
wholly-owned subsidiaries to perform its obligations hereunder (in any or all
of which cases the Company nonetheless shall remain responsible for the
performance of all of its obligations hereunder).  This Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors
(including heirs, executors and administrators) and permitted assigns, except
as specifically provided in Article VI and Article VII hereof.

 

Section 7.6  Counterparts.  This Agreement may be executed in one or more
counterparts (including by means of facsimile), each of which shall be deemed
an original but all of which together shall constitute one and the same
instrument.

 

14

 

Section 7.7  Governing Law.  This Agreement shall be governed by and
construed in accordance with the domestic laws of the State of New York without
giving effect to any choice or conflict of law provision or rule (whether
of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York.

 

Section 7.8  Additional Sales.  It is understood and agreed that Yaacov
Dabah, Eva Yagoda or Renee Dabah & Eva Yagoda co-tteee Trust fbo
Moshe, Chana, Yaacov Dabah u/a dtd 11/01/1998 will be entitled to sell 17,280
shares of Common Stock held by them in the Offering, in which case they will
execute joinders to this Agreement.

 

* * * *

 

[Remainder
of Page Intentionally Left Blank]

 

15

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date
first above written.

 

	
   

  	
  THE CHILDREN’S PLACE
  RETAIL STORES, INC.

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Charles Crovitz

  
	
   

  	
  Title: Interim Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EZRA DABAH

  
	
   

  	
  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RENEE DABAH

  
	
   

  	
  

  
	
   

  	
   

  
	
   

  	
  R
  SILVERSTEIN & R DABAH CO-TTEE EVA DABAH TRUST U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  R
  SILVERSTEIN & R DABAH CO-TTEE JOIA DABAH TRUST U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  

 

 

	
   

  	
  R
  SILVERSTEIN & R DABAH CO-TTEE MOSHE DABAH TRUST U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  R
  SILVERSTEIN & R DABAH CO-TTEE CHANA DABAH TRUST U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  R
  SILVERSTEIN & R DABAH CO-TTEE YAACOV DABAH TRUST U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Dabah

  
	
   

  	
  Title: Co-Trustee

  

 

 

	
   

  	
  RENEE DABAH &
  JOIA DABAH CO-TTEE MORDECHAI YAACOV YAGODA TRUST U/A DTD 08/06/2002

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Joia Dabah Kazam

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JOIA KAZAM &
  RENEE DABAH CO-TTEE RACHEL CHANA YAGODA TRUST U/A DTD 08/06/2002

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Joia Dabah Kazam

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  

 

 

	
   

  	
  RENEE DABAH &
  JOIA DABAH CO-TTEE YAEL BRACHA YAGODA TRUST U/A DTD 9/12/2003

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Joia Dabah Kazam

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RAINE SILVERSTEIN TTEE
  RENEE DABAH TTEE FBO EVA DABAH U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RAINE SILVERSTEIN TTEE
  RENEE DABAH TTEE FBO JOIA DABAH U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  

 

 

	
   

  	
  RAINE SILVERSTEIN TTEE
  RENEE DABAH TTEE FBO MOSHE DABAH U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RAINE SILVERSTEIN TTEE
  RENEE DABAH TTEE FBO CHANA DABAH U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  RAINE SILVERSTEIN TTEE
  RENEE DABAH TTEE FBO YAACOV DABAH U/A DTD 02/02/1997

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Raine Silverstein

  
	
   

  	
  Title: Co-Trustee

  
	
   

  	
   

  
	
   

  	
  

  
	
   

  	
  Name: Renee Dabah

  
	
   

  	
  Title: Co-TrusteeExhibit 4.1

 

ARTICLES OF ARRANGEMENT OF THE REGISTRANT.

 

 

 

 Industry Canada     Industrie Canada

 

 

	
  Certificate of Arrangement

  	
   

  	
  Certificat
  d’arrangement

  
	
   

  	
   

  	
   

  
	
  Canada Business Corporations Act

  	
   

  	
  Loi
  canadienne sur les sociétés par actions

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Suncor Energy Inc.

  	
   

  	
  241769-3

  
	
   

  	
   

  	
   

  
	
  Suncor Énergie Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Petro-Canada

  	
   

  	
  267612-5

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name of CBCA
  corporation(s) involved - 

  	
   

  	
  Corporation number – Numéro de la société

  
	
  Dénomination(s) de
  la (des) société(s)

  	
   

  	
   

  
	
  L C S A
  concernée(s)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  I hereby certify that the arrangement set out in the
  attached articles of arrangement, involving the above-referenced
  corporation(s), has been effected under section 192 of the Canada Business Corporations Act.

  	
   

  	
  Je certifie que l’arrangement mentionné dans les
  clauses d’arrangement annexées, concernant la (les) société(s) susmentionnée(s),
  a pris effet en vertu de l’article 192 de la Loi
  canadienne sur les sociétés par actions

  
	
   

  	
   

  	
   

  
	
   

  	
  

  	
   

  	
   

  	
  August 1, 2009 / le l août
  2009

  
	
  Richard G Shaw

  	
   

  	
  Date of
  Arrangement - Date de l’arrangement

  
	
  Director - Directeur

  	
   

  	
   

  
	
   

  	
   

  	
   

  
							

 

 

 

	
  

  	
  Industry
  Canada 

  	
  Industrie
  Canada 

  	
  FORM 14.1

  	
  FORMULAIRE 14.1

  
	
   

  	
  Canada
  Business

  Corporations Act

  	
  Loi
  canadienne sur les

  sociétés par actions

  	
  ARTICLES OF ARRANGEMENT

  (SECTION 192)

  	
  CLAUSES D’ARRANGEMENT

  (ARTICLE 192)

  

 

	
   1 -- Name of the applicant corporation(s) -
  Dénomination sociale de la(des) requérante(s) 

   

  Suncor Energy Inc.

  Petro-Canada

  	
   2 -- Corporation No.(s) - N°(s) de
  la(des) société(s)

   

  2417693

  2676125

  
	
   

  	
   

  
	
   3 --
  Name of the corporation(s) the articles of which are amended, if
  applicable

  Dénomination sociale de la(des) société(s) dont les statuts sont modifiés,
  le cas échéant

   

  N/A

  	
   4 -- Corporation No.(s) - N°(s) de
  la(des) société(s)

  
	
   

  	
   

  
	
   5 --
  Name of the corporation(s) created by amalgamation, if applicable

  Dénomination sociale de la(des) société(s) issue(s) de la(des)
  fusion(s), le cas échéant

   

  Suncor Energy Inc.

  	
   6 -- Corporation No.(s) - N°(s) de
  la(des) société(s)

  4490339

   

  
	
   

  	
   

  
	
  7 -- Name of the dissolved corporation(s),
  if applicable

  Dénomination sociale de la(des) société(s) dissoute(s), le cas échéant

   

  N/A

  	
   8 -- Corporation No.(s) - N°(s) de
  la(des) société(s)

  
	
   

  	
   

  
	
  9 -- Name of other corporations involved, if
  applicable

  Dénomination sociale des autres sociétés en cause, le cas échéant

   

  see attached Schedule 1

   

  	
   10
  -- Corporation No.(s) or Jurisdiction of Incorporation 

  N°(s) de la(des) société(s)/ou loi sous le régime de laquelle elle est
  constituée

  

11 -- In
accordance with the order approving the arrangement - Conformément aux termes
de l’ordonnance approuvant l‘arrangement

 

	
  a. o

  	
  The
  articles of the above named corporation(s) are amended in accordance
  with the attached plan of arrangement Les statuts de la(des) société(s) susmentionnée(s) sont
  modifiés en conformité avec le plan d’arrangement ci-joint

  
	
   

  	
   

  
	
   

  	
  The
  name of                                                                                 
  is changed to                                                                               

  
	
   

  	
   

  
	
   

  	
  La dénomination
  sociale de                                                                   
  est modifiée pour                                                                 

  
	
   

  	
   

  
	
  b. 

  	
  The
  following bodies corporate are amalgamated in accordance with the attached
  plan of arrangement Les personnes morales suivantes sont fusionnées conformément
  au plan d’arrangement ci-joint

  
	
   

  	
   

  
	
  c. o

  	
  The
  above named corporation(s) is(are) liquidated and dissolved in
  accordance with the attached plan of arrangement La(les) société(s) susmentionnée(s) est(sont)
  liquidée(s) et dissoute(s) conformément au plan d’arrangement
  ci-joint

  
	
   

  	
   

  
	
  d. 

  	
  The
  plan of arrangement attached hereto, involving the above named body(ies),
  corporate is hereby effected Le plan d’arrangement ci-joint portant sur
  la(les) personne(s) morale(s) susmentionnée(s) prend effet

  
	
   

  	
   

  
	
   

  	
  The
  following corporations are amalgamated: Suncor Energy Inc., Petro-Canada,
  7208782 Canada Inc., 4525752 Canada Inc., 7208821 Canada Inc. and 7208663
  Canada Inc.

  
	
   

  	
   

  
	
   

  	
  For additional Information concerning the amalgamated corporation,
  Suncor Energy Inc., see attached Schedule 2

  

 

 

 

	
  Signature

  	
  Printed
  Name - Nom en lettres moulées

  	
   

  	
  12 --
  Capacity of - En qualité de

  	
  13 -- Tel. No. - N° de tél.

  
	
  

  	
   

  Janice
  B. Odegaard

  	
   

  	
   

  Vice
  President, Corp. Secretary, Suncor

  	
   

  (403) 269-8151

  
	
  Hugh
  L. Hooker

  	
   

  	
  Corporate
  Secretary, Petro Canada

  	
   

  
	
  FOR DEPARTMENTAL USE ONLY - A L’USAGE DU MINISTERE
  SEULEMENT

  
	
   

  
	
  Aug 01 2009

  
	
   

  
	
   

  
	
  IC 3189 (2003/06)

  	
  

  

 

 

SCHEDULE
1 TO

ARTICLES OF ARRANGEMENT

 

9.             Name of other corporations
involved, if applicable:

 

	
  7208782 Canada Inc.

  	
  720878-2

  
	
  4525752 Canada Inc.

  	
  452575-2

  
	
  7208821 Canada Inc.

  	
  720882-1

  
	
  7208863 Canada Inc.

  	
  720886-3

  

 

 

SCHEDULE 2 TO

ARTICLES OF ARRANGEMENT

 

1.             NAME OF THE AMALGAMATED
CORPORATION:

 

Suncor Energy Inc.

 

2.             THE PROVINCE OR TERRITORY IN CANADA WHERE THE
REGISTERED OFFICE IS TO BE SITUATED:

 

Alberta

 

3.             THE CLASSES AND ANY MAXIMUM NUMBER OF SHARES
THAT THE CORPORATION IS AUTHORIZED TO ISSUE:

 

Suncor Energy Inc. is authorised to issue: (A) an unlimited number
of preferred shares issuable in series designated as Senior Preferred Shares; (B) an
unlimited number of preferred shares issuable is series designated as Junior
Preferred Shares; and (C) an unlimited number of common shares.  The rights, privileges, restrictions and
conditions attaching to shares of Suncor Energy Inc. shall be as set forth in
Schedule A to the Plan of Arrangement.

 

4.             RESTRICTIONS, IF ANY, ON SHARE
TRANSFERS:

 

The restrictions on the transfer of shares of Suncor Energy Inc. shall
be as set forth in Schedule B to the Plan of Arrangement.

 

5.             NUMBER (OR MINIMUM AND MAXIMUM
NUMBER) OF DIRECTORS:

 

Minimum: 8           Maximum: 15

 

6.             RESTRICTIONS, IF ANY, ON BUSINESS
THE CORPORATION MAY CARRY ON:

 

There shall be no restrictions on the business Suncor Energy Inc. may
carry on or on the powers it may exercise.

 

7.             OTHER PROVISIONS, IF ANY

 

See Schedule C to the Plan of Arrangement.

 

8.             THE AMALGAMATION HAS BEEN APPROVED PURSUANT
TO THAT SECTION OR  SUBSECTION OF
THE ACT WHICH IS INDICATED AS FOLLOWS:

 

Section 192

 

9.             NAME OF THE AMALGAMATING CORPORATIONS AND
THEIR CORPORATE ACCESS NUMBERS ARE:

 

	
  Suncor Energy Inc.

  	
  2417693

  
	
  Petro-Canada

  	
  2676125

  
	
  7208782 Canada Inc.

  	
  720878-2

  
	
  4525752 Canada Inc.

  	
  452575-2

  
	
  7208821 Canada Inc.

  	
  720882-1

  
	
  7208863 Canada Inc.

  	
  720886-3

  

 

 

SCHEDULE 1.1 (a)

 

PLAN OF ARRANGEMENT

 

INVOLVING

 

SUNCOR ENERGY INC., PETRO-CANADA,

CERTAIN SUBSIDIARIES OF

SUNCOR ENERGY INC. AND PETRO-CANADA,

THE SHAREHOLDERS OF SUNCOR ENERGY INC.

AND THE SHAREHOLDERS OF PETRO-CANADA

 

made pursuant to

 

Section 192 of the Canada Business Corporations Act

 

ARTICLE I

 

INTERPRETATION

 

1.1      Definitions

 

In
this Plan of Arrangement the following terms shall have the respective meanings
set out below and grammatical variations of such terms shall have corresponding
meanings:

 

‘‘Aggregate Petro-Canada Shareholder Elected Amount’’ has
the meaning set forth in subsection 2.3(b) of this Plan of Arrangement;

 

‘‘Aggregate Suncor Shareholder Elected Amount’’ has
the meaning set forth in subsection 2.4(b) of this Plan of Arrangement;

 

‘‘Amalco’’ means the corporation continuing
as a successor to the Amalgamating Corporations under the CBCA following the
effectiveness of the Arrangement contemplated hereby;

 

‘‘Amalco Shares’’ means common shares in the
capital of Amalco;

 

‘‘Amalgamating Corporations’’ means Suncor,
Petro-Canada, Subco 1, Subco 2, Subco 3 and Subco 4;

 

‘‘Arrangement’’ means the arrangement under
section 192 of the CBCA on the terms and subject to the conditions set out in
this Plan of Arrangement, subject to any amendments or variations thereto made
in accordance with Section 8.3 of the Arrangement Agreement or ARTICLE V
hereof or made at the direction of the Court in the Final Order;

 

‘‘Arrangement Agreement’’ means the agreement
made as of March 22, 2009 between Suncor and Petro-Canada, as amended,
supplemented or restated in accordance therewith prior to the Effective Date,
providing for, among other things, the Arrangement;

 

‘‘Arrangement Resolution’’ means the special
resolution passed by the Suncor Shareholders at the Suncor Shareholders’
Meeting and by the Petro-Canada Shareholders at the Petro-Canada Shareholders’
Meeting substantially in the form of Schedule 1.1(b) to the Arrangement
Agreement;

 

‘‘Articles of Arrangement’’ means the
articles of arrangement of Suncor and Petro-Canada in respect of the Arrangement,
required by the CBCA to be sent to the Director after the Final Order is made;

 

‘‘associates’’ has the meaning assigned to
such term in section 9 of the Petro-Canada
Public Participation Act;

 

 

‘‘business day’’ means any day, other than a
Saturday, a Sunday or a statutory holiday, in the Province of Alberta;

 

‘‘CBCA’’ means the Canada Business Corporations Act, R.S.C. 1995, c. C-44, as
amended;

 

‘‘Certificate’’ means the certificate of
arrangement giving effect to the Arrangement, issued pursuant to subsection 192(7) of
the CBCA after the Articles of Arrangement have been filed;

 

‘‘Court’’ means the Court of Queen’s Bench of
Alberta;

 

‘‘Depositary’’ means Computershare Investor
Services Inc. at its offices set out in the Letter of Transmittal and Election
Form;

 

‘‘Director’’ means the Director appointed
pursuant to section 260 of the CBCA;

 

‘‘Dissenting Petro-Canada Shareholder’’ means
a Petro-Canada Shareholder who dissents in respect of the Arrangement in strict
compliance with Section 3.2;

 

‘‘Dissenting Suncor Shareholder’’ means a
Suncor Shareholder who dissents in respect of the Arrangement in strict
compliance with Section 3.1;

 

‘‘Effective Date’’ means the date shown in
the Certificate issued by the Director;

 

‘‘Effective Time’’ means 12:01 a.m.
(Calgary time) on the Effective Date;

 

‘‘Eligible Petro-Canada Shareholder’’ means
a Petro-Canada Shareholder who is an individual and not a corporation,
partnership or trust and who is not a Non-Resident Petro-Canada Shareholder or
a Dissenting Petro-Canada Shareholder;

 

‘‘Eligible Suncor Shareholder’’ means
a Suncor Shareholder who is an individual and not a corporation, partnership or
trust and who is not a Non-Resident Suncor Shareholder or a Dissenting Suncor
Shareholder;

 

‘‘Excess
Shares’’ has the meaning set forth in subsection 2.2(f)(xv)(H)(I) of
this Plan of Arrangement;

 

‘‘Filed Letter of Transmittal’’ means
a duly completed Letter of Transmittal and Election Form deposited with
the Depositary on or before the Petro-Canada Election Deadline, in respect of a
Letter of Transmittal and Election Form filed by a Petro-Canada
Shareholder, or the Suncor Election Deadline, in respect of a Letter of
Transmittal and Election Form filed by a Suncor Shareholder;

 

‘‘Final Order’’ means the
order of the Court approving the Arrangement, as such order may be amended at
any time prior to the Effective Date or, if appealed, then unless such appeal
is withdrawn or denied, as affirmed;

 

‘‘Interim Order’’ means an
order of the Court, as the same may be amended, containing declarations and
directions in respect of the notice to be given and the conduct of the Suncor
Shareholders’ Meeting and the Petro-Canada Shareholders’ Meeting with respect
to the Arrangement;

 

‘‘Letter of Transmittal and Election Form’’ means
the Letter of Transmittal and Election Form for use by Suncor Shareholders
and Petro-Canada Shareholders to be delivered in connection with the
Arrangement;

 

‘‘Non-Resident’’ means a person (within the
meaning of the Tax Act but, for greater certainty, not including a partnership)
who is not resident in Canada for the purposes of the Tax Act;

 

‘‘Non-Resident Petro-Canada Shareholder’’ means
a Petro-Canada Shareholder that is a Non-Resident;

 

‘‘Non-Resident Suncor Shareholder’’ means a
Suncor Shareholder that is a Non-Resident;

 

 

‘‘Original Petro-Canada Shareholder Elected Amount’’ has
the meaning set forth in subsection 2.3(b) of this Plan of Arrangement;

 

‘‘Original Suncor Shareholder Elected Amount’’ has
the meaning set forth in subsection 2.4(b) of this Plan of Arrangement;

 

‘‘Person’’ includes an individual, firm,
trust, partnership, association, corporation, joint venture, trustee, executor,
administrator, legal representative or government (including any Governmental
Entity);

 

‘‘Petro-Canada’’ means Petro-Canada, a
corporation existing under the CBCA;

 

‘‘Petro-Canada Electing Shareholders’’
means Petro-Canada Shareholders who are Eligible Petro-Canada
Shareholders and who, subject to pro-ration under subsection 2.3(b), elect to
transfer all (but not less than all) of their Petro-Canada Shares to Subco 2 in
consideration for Subco 1 Non-Voting Shares in accordance with subsection 2.3
of this Plan of Arrangement;

 

‘‘Petro-Canada Election Deadline’’ means 4:30 p.m.
(Calgary time) on the date specified in the Letter of Transmittal and Election
Form;

 

‘‘Petro-Canada Exchange Ratio’’ means 1.28
Amalco Shares for each Petro-Canada Share or Subco 1 Non-Voting Share, as the
case may be;

 

‘‘Petro-Canada Shareholder’’ means a holder
of Petro-Canada Shares;

 

‘‘Petro-Canada Shareholders’ Meeting’’
means such meeting or meetings of the Petro-Canada Shareholders,
including any adjournment thereof, that is to be convened as provided by the
Interim Order to consider, and if deemed advisable approve, the Arrangement;

 

‘‘Petro-Canada Shares’’ means the common
shares in the capital of Petro-Canada issued and outstanding immediately prior
to the Effective Date;

 

‘‘Petro-Canada Transfer Limit’’ has the
meaning set forth in subsection 2.3(b) of this Plan of Arrangement;

 

‘‘Reduced Petro-Canada Shareholder Elected Amount’’ has
the meaning set forth in subsection 2.3(b) of this Plan of Arrangement;

 

‘‘Reduced Suncor Shareholder Elected Amount’’ has
the meaning set forth in subsection 2.4(b) of this Plan of Arrangement;

 

‘‘Subco 1’’ means 7208782 Canada Inc., a
corporation incorporated under the CBCA and a subsidiary of Suncor;

 

‘‘Subco 1 Non-Voting Shares’’ means the Class B
common non-voting shares in the capital of Subco 1;

 

‘‘Subco 2’’ means 4525752 Canada Inc., a
corporation incorporated under the CBCA and a subsidiary of Subco 1;

 

‘‘Subco 2 Shares’’ means the common shares in
the capital of Subco 2;

 

‘‘Subco 3’’ means 7208821 Canada Inc., a
corporation incorporated under the CBCA and a subsidiary of Petro-Canada;

 

‘‘Subco 3 Non-Voting Shares’’ means the Class B
common non-voting shares in the capital of Subco 3;

 

‘‘Subco 4’’ means 7208863
Canada Inc., a corporation incorporated under the CBCA and a subsidiary of
Subco 3;

 

‘‘Subco 4 Shares’’ means common shares in the
capital of Subco 4;

 

‘‘Suncor’’ means Suncor Energy Inc., a
corporation existing under the CBCA;

 

‘‘Suncor Electing Shareholders’’ means
Suncor Shareholders who are Eligible Suncor Shareholders and who, subject to
pro-ration under subsection 2.4(b), elect to transfer all (but
not less than all) of their Suncor Shares to Subco 4 in consideration for Subco
3 Non-Voting Shares in accordance with subsection 2.4 of this Plan of
Arrangement;

 

‘‘Suncor Election Deadline’’ means
4:30 p.m. (Calgary time) on the date specified in the Letter of
Transmittal and Election Form;

 

‘‘Suncor Exchange Ratio’’ means
1.00 Amalco Share for each Suncor Share or Subco 3 Non-Voting Share, as the
case may be;

 

‘‘Suncor Shareholder’’ means a holder of
Suncor Shares;

 

‘‘Suncor Shareholder Rights Plan’’ means
Suncor’s amended and restated Shareholder Rights Plan dated April 24, 2008;

 

‘‘Suncor Shareholders’ Meeting’’ means such
meeting or meetings of the Suncor Shareholders, including any adjournment
thereof, that is to be convened as provided by the Interim Order to consider,
and if deemed advisable approve, the Arrangement;

 

‘‘Suncor Shares’’ means the common shares in
the capital of Suncor issued and outstanding immediately prior to the Effective
Date;

 

‘‘Suncor SRP Rights’’ means rights under the
Suncor Shareholder Rights Plan;

 

‘‘Suncor Transfer Limit’’ has the meaning set
forth in subsection 2.4(b) of this Plan of Arrangement; and

 

‘‘Tax Act’’ means the Income Tax Act, R.S.C. 1985, c. 1 (5th
Supp.), as amended, including the regulations promulgated thereunder, as
amended from time to time.

 

Any
capitalized terms used but not defined herein shall have the meaning ascribed
to such terms in the Arrangement Agreement.

 

1.2      Sections and Headings

 

The division of this Plan of
Arrangement into sections and the insertion of headings are for reference
purposes only and shall not affect the interpretation of this Plan of
Arrangement. Unless otherwise indicated, any reference in this Plan of
Arrangement to a section or a schedule refers to the specified section of or
schedule to this Plan of Arrangement.

 

1.3      Number and Gender

 

In
this Plan of Arrangement, unless the contrary intention appears, words
importing the singular include the plural and vice versa; and words importing
gender shall include all genders.

 

 

ARTICLE
II

ARRANGEMENT

 

2.1      Binding Effect

 

This
Plan of Arrangement will become effective at, and be binding at and after, the
Effective Time on: (a) the Amalgamating Corporations; (b) all Suncor
Shareholders; and (c) all Petro-Canada Shareholders.

 

2.2      Arrangement

 

Commencing
at the Effective Time, the following shall occur and shall be deemed to occur
in the following order without any further act or formality:

 

(a)      the Suncor Shareholder Rights Plan shall
terminate and cease to have any further force or effect and the Suncor SRP
Rights shall be cancelled;

 

(b)      subject to Section 2.3, the Petro-Canada
Shares held by each Petro-Canada Electing Shareholder who so elects in a Filed
Letter of Transmittal with respect to such Petro-Canada Shares shall be sold,
assigned and transferred by such Petro-Canada Electing Shareholder directly to Subco
2, as principal, free of any claims (in consideration for Subco 1 Non-Voting
Shares to be issued by Subco 1 to the Petro-Canada Electing Shareholder in
accordance with subsection 2.2(c));

 

(c)      Subco 1 shall issue Subco 1 Non-Voting Shares
to the Petro-Canada Electing Shareholders whose Petro-Canada Shares have been
transferred to Subco 2 in accordance with subsection 2.2(b) on the basis
of one Subco 1 Non-Voting Share for each Petro-Canada Share so sold, assigned
and transferred to Subco 2 and Subco 2 shall issue an equal number of Subco 2
Shares to Subco 1 in consideration for Subco 1 issuing the Subco 1 Non-Voting
Shares to the Petro-Canada Electing Shareholders;

 

(d)     subject to Section 2.4, the Suncor
Shares held by each Suncor Electing Shareholder who so elects in a Filed Letter
of Transmittal with respect to such Suncor Shares shall be sold, assigned and
transferred by such Suncor Electing Shareholder directly to Subco 4, as
principal, free of any claims (in consideration for Subco 3 Non-Voting Shares
to be issued by Subco 3 to the Suncor Electing Shareholder in accordance with
subsection 2.2(e));

 

(e)     Subco 3 shall issue Subco 3 Non-Voting Shares to the Suncor Electing
Shareholders whose Suncor Shares have been transferred to Subco 4 in accordance
with subsection 2.2(d) on the basis of one Subco 3 Non-Voting Share for
each Suncor Share so sold, assigned and transferred to Subco 4 and Subco 4
shall issue an equal number of Subco 4 Shares to Subco 3 in consideration for
Subco 3 issuing the Subco 3 Non-Voting Shares to the Suncor Electing
Shareholders;

 

(f)      the Amalgamating Corporations shall be amalgamated and continued as one
corporation under the CBCA in accordance with the following:

 

(i)         Name. The name of Amalco shall be ‘‘Suncor Energy Inc.’’;

 

(ii)        Registered
Office. The registered office of
Amalco shall be located at P.O. Box 38, 112 - 4th Avenue S.W., Calgary,
Alberta, T2P 2V5;

 

(iii)       Business and
Powers. There shall be no
restrictions on the business Amalco may carry on or on the powers it may exercise;

 

 

(iv)     Share Provisions. Amalco is authorized to issue: (A) an
unlimited number of preferred shares issuable in series designated as Senior
Preferred Shares; (B) an unlimited number of preferred shares issuable in
series designated as Junior Preferred Shares; and (C) an unlimited number
of Amalco Shares. The rights, privileges, restrictions and conditions attaching
to shares of Amalco shall be as set forth in Schedule A hereto;

 

(v)      Restrictions on
Transfer. The
restrictions on the transfer of shares of Amalco shall be as set forth in
Schedule B hereto;

 

(vi)     Other
Restrictions. The additional
restrictions on Amalco shall be as set forth in Schedule C hereto;

 

(vii)    Amendment
of Restrictions on Repeal of Legislation.

 

(A)     On the date section 9(1)(a) of the Petro-Canada Public Participation Act, as amended from time
to time, and any other provisions contained in such Act relating to limitations
on individual ownership of voting shares of Amalco is repealed and not replaced
with other constraints on the issue, transfer or ownership of voting shares by
individual Persons, Schedule B hereto and all references thereto shall be
deleted in their entirety. For greater certainty, this provision shall not
apply in the event section 9(1)(a) of the Petro-Canada
Public Participation Act, as amended from time to time, is amended
but not repealed or if such provision is repealed but is replaced with other
provisions constraining the issue, transfer, ownership or voting of voting
shares;

 

(B)        On the date the Petro-Canada Public
Participation Act, as amended from time to time, is repealed in its
entirety and not replaced with other constraints on Amalco, Schedules B and C
hereto and all references thereto shall be deleted in their entirety; and

 

(C)        Amalco shall, within 30 days of the
amendments or repeal provided in this section becoming effective, send each
holder of Amalco Shares notice thereof;

 

(viii)    Directors and Officers.

 

(A)    Minimum and Maximum. The directors of Amalco shall, until otherwise changed in accordance
with the CBCA, consist of a minimum number of eight and a maximum number of
fifteen directors;

 

(B)     Initial Directors. The number of directors on the board of directors shall initially be
set at twelve. The initial directors of Amalco immediately following the
amalgamation shall be the individuals whose names appear below:

 

	
  Name

  	
   

  	
  Residency

  
	
   

  	
   

  	
   

  
	
  John T.
  Ferguson

  	
   

  	
  Canadian

  
	
  Richard L. George

  	
   

  	
  Canadian

  
	
  Mel E. Benson

  	
   

  	
  Canadian

  
	
  Brian A. Canfield

  	
   

  	
  American

  
	
  W. Douglas Ford

  	
   

  	
  American

  
	
  Paul Haseldonckx

  	
   

  	
  German

  
	
  John R. Huff

  	
   

  	
  American

  
	
  Brian F. MacNeill

  	
   

  	
  Canadian

  
	
  Maureen McCaw

  	
   

  	
  Canadian

  
	
  Michael W. O’Brien

  	
   

  	
  Canadian

  
	
  James W. Simpson

  	
   

  	
  American

  
	
  Eira M. Thomas

  	
   

  	
  Canadian

  

 

 

The initial directors shall
hold office until the next annual meeting of the shareholders of Amalco or
until their successors are elected or appointed. The actual number of directors
within the minimum and maximum number set out in subsection 2.2(f)(viii)(A) may
be determined from time to time by resolution of the directors. Any vacancy on
the board of directors resulting from an increase in the number of directors as
so determined may be filled by resolution of the directors;

 

(C)     Initial Officers. The initial officers of Amalco shall be as follows:

 

	
  Name

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
  Neil J. Camarta

  	
   

  	
  Executive Vice President,
  Natural Gas

  
	
  Bart Demosky

  	
   

  	
  Chief Financial Officer

  
	
  Terrence J. Hopwood

  	
   

  	
  Senior Vice President and
  General Counsel

  
	
  Boris J. Jackman  

  	
   

  	
  Executive Vice President,
  Refining and Marketing

  
	
  Peter S. Kallos

  	
   

  	
  Executive Vice President,
  International and Offshore

  
	
  Sue Lee

  	
   

  	
  Senior Vice President,
  Human Resources and Public Affairs

  
	
  Mark Little 

  	
   

  	
  Senior Vice President,
  Strategy and Integration

  
	
  Mike MacSween

  	
   

  	
  Senior Vice President,
  In-Situ

  
	
  Kevin Nabholz

  	
   

  	
  Executive Vice President,
  Major Projects

  
	
  E.F.H. Roberts

  	
   

  	
  Senior Vice President,
  Integration

  
	
  Andrew Stephens

  	
   

  	
  Senior Vice President,
  Business Services

  
	
  Jay Thornton

  	
   

  	
  Executive Vice President,
  Supply, Energy Trading and Renewables

  
	
  Steven W. Williams

  	
   

  	
  Chief Operating Officer

  

 

(ix)       Stated Capital. For the purposes of the CBCA, the aggregate stated capital attributable
to the Amalco Shares issued pursuant to the Arrangement shall be the aggregate
of the paid-up capital for the purposes of the Tax Act of the Suncor Shares,
the Petro-Canada Shares, the Subco 1 Non-Voting Shares and the Subco 3
Non-Voting Shares immediately before the amalgamation, less the amount of any
paid-up capital for the purposes of the Tax Act of the Suncor Shares or the
Petro-Canada Shares that are cancelled on the amalgamation pursuant to
subsections 2.2(f)(xv)(A), (xv)(B), or (xv)(G);

 

(x)        By-laws. The by-laws of Amalco shall be the same as
those of Suncor, mutatis mutandis;

 

(xi)       Effect of
Amalgamation. The provisions
of subsections 186(b), (c), (d), (e) and (f) of the CBCA shall apply
to the amalgamation with the result that:

 

(A)     the property of each amalgamating corporation
(other than shares of an Amalgamating Corporation held by another Amalgamating
Corporation and an amount receivable by an Amalgamating Corporation from
another Amalgamating Corporation) shall continue to be the property of Amalco;

 

(B)       Amalco shall continue to be liable for the obligations of each
amalgamating corporation (other than an amount owing by an Amalgamating
Corporation to another Amalgamating Corporation);

 

(C)       any existing cause of action, claim or
liability to prosecution of an Amalgamating Corporation shall be unaffected;

 

 

(D)       any civil, criminal or administrative action
or proceeding pending by or against an Amalgamating Corporation may be
continued to be prosecuted by or against Amalco; and

 

(E)        a conviction against, or ruling, order or
judgment in favour of or against, an Amalgamating Corporation may be enforced
by or against Amalco;

 

(xii)        Articles. The Articles of Arrangement filed to give effect to the Arrangement
shall be deemed to be the articles of amalgamation of Amalco and the
Certificate issued in respect of such Articles of Arrangement by the Director
under the CBCA shall be deemed to be the certificate of amalgamation of Amalco;

 

(xiii)       Inconsistency
with Laws. To the extent
any of the provisions of this Plan of Arrangement is deemed to be inconsistent
with applicable Laws, this Plan of Arrangement shall be automatically adjusted
to remove such inconsistency;

 

(xiv)       Auditors. The initial auditors of Amalco will be PricewaterhouseCoopers LLP, who
shall continue in office until the close of business of the first annual
meeting of the holders of Amalco Shares, and the directors of Amalco are
authorized to fix the remuneration of such auditors; and

 

(xv)        Exchange
and Cancellation of Shares. On the amalgamation:

 

(A)     each Suncor Share held by a Dissenting Suncor
Shareholder who has validly exercised such shareholder’s rights of dissent
pursuant to Section 3.1 and which rights of dissent remain valid
immediately prior to the Effective Time shall be cancelled and become an
entitlement to be paid the fair value of such Suncor Share and the Dissenting
Suncor Shareholder shall cease to have any rights as a Suncor Shareholder other
than the right to be paid the fair value of such Suncor Share by Amalco in
accordance with Section 3.1;

 

(B)       each Petro-Canada Share held by a Dissenting Petro-Canada Shareholder
who has validly exercised such shareholder’s rights of dissent pursuant to Section 3.2
and which rights of dissent remain valid immediately prior to the Effective
Time shall be cancelled and become an entitlement to be paid the fair value of
such Petro-Canada Share and the Dissenting Petro-Canada Shareholder shall cease
to have any rights as a Petro-Canada Shareholder other than the right to be
paid the fair value of such Petro-Canada Share by Amalco in accordance with Section 3.2;

 

(C)       each Suncor Share (other than Suncor Shares held by an Amalgamating
Corporation or Dissenting Suncor Shareholders) will be converted, without any
act or formality on the part of the holder thereof, into that number of fully
paid and non-assessable Amalco Shares equal to the Suncor Exchange Ratio, and
the name of each such Suncor Shareholder will be removed from the register of
holders of Suncor Shares and added to the register of holders of Amalco Shares;

 

(D)      each Petro-Canada Share (other than Petro-Canada Shares held by an
Amalgamating Corporation or Dissenting Petro-Canada Shareholders) will be
converted, without any act or formality on the part of the holder thereof, into
that number of fully paid and non-assessable Amalco Shares equal to the
Petro-Canada Exchange Ratio, and the name of each such Petro-Canada Shareholder
will be removed from the register of holders of Petro-Canada Shares and added
to the register of holders of Amalco Shares;

 

 

(E)       each Subco 1 Non-Voting Share will be converted, without any act or
formality on the part of the holder thereof, into that number of fully paid and
non-assessable Amalco Shares equal to the Petro-Canada Exchange Ratio, and the
name of each such holder of Subco 1 Non-Voting Shares will be removed from the
register of holders of Subco 1 Non-Voting Shares and added to the register of
holders of Amalco Shares;

 

(F)       each Subco 3 Non-Voting Share will be converted, without any act or
formality on the part of the holder thereof, into that number of fully paid and
non-assessable Amalco Shares equal to the Suncor Exchange Ratio, and the name
of each such holder of Subco 3 Non-Voting Shares will be removed from the
register of holders of Subco 3 Non-Voting Shares and added to the register of
holders of Amalco Shares;

 

(G)       each share of an Amalgamating Corporation
held by another Amalgamating Corporation will be cancelled without any payment
of capital in respect thereof; and

 

(H)      in connection with the issuance and registration of Amalco Shares
pursuant to subsections 2.2(f)(xv)(C), (D), (E), and (F), if the board of
directors of Petro-Canada or the board of directors of Suncor determine that
any person, together with any associates of that person, would hold,
beneficially own or control, directly or indirectly, otherwise than by way of
security only, in the aggregate more than 20% of the outstanding Amalco Shares
immediately after the Effective Time:

 

(I)        Amalco
shall not register or otherwise recognize the issuance of any Amalco Shares to
such person or any associate of that person that are in excess of 20% of the
outstanding Amalco Shares immediately after the Effective Time (the ‘‘Excess
Shares’’);

 

(II)       the Excess Shares shall be registered in the
name of one or more trustees to be designated by Petro-Canada (and agreed to by
Suncor, acting reasonably) prior to the Effective Time and Amalco after the
Effective Time and Amalco shall be entitled to sell or redeem the Excess Shares
in accordance with Sections 5, 6 and 7of Schedule B to this Plan of Arrangement
and Amalco shall be entitled to rely on the provisions set forth in Schedule B
to this Plan of Arrangement in connection with the sale or redemption of the
Excess Shares which shall apply mutatis
mutandis in these circumstances; and

 

(III)     as long as the Excess Shares are held,
beneficially owned or controlled by a person or associates of that person that
hold, beneficially own or control, directly or indirectly, otherwise than by
way of security only, in the aggregate more than 20% of the outstanding Amalco
Shares, no person may, in person or by proxy, exercise the right to vote any of
the Excess Shares and none of the Excess Shares shall be entitled to any
dividend or other distribution and any entitlement to such dividend or other
distribution shall be forfeited.

 

For
purposes of this subsection 2.2(f)(xv)(H), the term ‘‘person’’ shall have the
meaning set forth in the Petro-Canada Public
Participation Act.

 

 

2.3      Petro-Canada Electing
Shareholders

 

With respect to the election
that may be made by an Eligible Petro-Canada Shareholder pursuant to subsection
2.2(b):

 

(a)      subject to subsection 2.3(b), each Eligible
Petro-Canada Shareholder shall be entitled to make such election by depositing
with the Depositary, prior to the Petro-Canada Election Deadline, a validly
completed and duly signed Letter of Transmittal and Election Form indicating
such holder’s election, together with certificates representing such holder’s
Petro-Canada Shares;

 

(b)      the maximum number of Petro-Canada Shares
that may be elected by all Eligible Petro-Canada Shareholders to be transferred
to Subco 2 shall not exceed 15% of the number of issued and outstanding
Petro-Canada Shares as of the Petro-Canada Election Deadline (the ‘‘Petro-Canada
Transfer Limit’’). In the event the aggregate number of Petro-Canada
Shares in respect of which Petro-Canada Electing Shareholders have validly and
duly deposited elections with the Depositary pursuant to subsection 2.3(a) to
transfer to Subco 2 (the ‘‘Aggregate Petro-Canada Shareholder Elected Amount’’) exceeds
the Petro-Canada Transfer Limit, then the number of Petro-Canada Shares which a
particular Petro-Canada Electing Shareholder has otherwise elected to be
transferred to Subco 2 in the Filed Letter of Transmittal of such Petro-Canada
Electing Shareholder (the ‘‘Original Petro-Canada Shareholder Elected Amount’’) shall
be reduced to such number of whole Petro-Canada Shares (with all fractions
being rounded down to the nearest whole number of Petro-Canada Shares) (the ‘‘Reduced
Petro-Canada Shareholder Elected Amount’’) as is equal to the
following formula:

 

	
  Petro-Canada
  Transfer Limit

  	
  x  Original Petro-Canada Shareholder

  
	
  Aggregate Petro-Canada
  Shareholder Elected Amount

  	
             Elected Amount

  
			

 

and each such Petro-Canada
Electing Shareholder shall (i) be deemed to have elected to transfer to
Subco 2 such number of Petro-Canada Shares as is equal to the Reduced
Petro-Canada Shareholder Elected Amount of such Petro-Canada Electing
Shareholder and (ii) be deemed to have not elected to transfer to Subco 2
the balance of the Petro-Canada Shares in respect of which the Petro-Canada
Electing Shareholder otherwise elected in the Filed Letter of Transmittal and
such Petro-Canada Shares shall be converted to Amalco Shares upon the
Arrangement in accordance with subsection 2.2(f)(xv)(D) and all such elections made in the Filed Letters of Transmittal shall be amended
accordingly; and

 

(c)     any Petro-Canada Shares held by an Eligible Petro-Canada Shareholder
who: (i) does not deposit with the Depositary a validly completed and duly
signed Letter of Transmittal and Election Form prior to the Petro-Canada
Election Deadline, (ii) otherwise fails to comply with the requirements of
subsection 2.3(a) and the Letter of Transmittal and Election Form or (iii) fails
to elect to exchange the Petro-Canada Shares held by such Petro-Canada Eligible
Shareholder as contemplated by subsections 2.2(b) and 2.2(c), shall be
converted to Amalco Shares upon the Arrangement in accordance with subsection
2.2(f)(xv)(D).

 

2.4      Suncor Electing Shareholders

 

With
respect to the election that may be made by an Eligible Suncor Shareholder
pursuant to subsection 2.2(d):

 

(a)      subject to subsection 2.4(b), each Eligible Suncor Shareholder shall be
entitled to make such election by depositing with the Depositary, prior to the
Suncor Election Deadline, a validly completed and duly signed Letter of Transmittal
and Election Form indicating such holder’s election, together with
certificates representing such holder’s Suncor Shares;

 

 

(b)      the maximum number of Suncor Shares that may
be elected by all Eligible Suncor Shareholders to be transferred to Subco 4
shall not exceed 15% of the number of issued and outstanding Suncor Shares as
of the Suncor Election Deadline (the ‘‘Suncor Transfer Limit’’). In the event the
aggregate number of Suncor Shares in respect of which Suncor Electing
Shareholders have validly and duly deposited elections with the Depositary
pursuant to subsection 2.4(a) to transfer to Subco 4 (the ‘‘Aggregate
Suncor Shareholder Elected Amount’’) exceeds the Suncor Transfer
Limit, then the number of Suncor Shares which a particular Suncor Electing
Shareholder has otherwise elected to be transferred to Subco 4 in the Filed
Letter of Transmittal of such Suncor Electing Shareholder (the ‘‘Original
Suncor Shareholder Elected Amount’’) shall be reduced to such number
of whole Suncor Shares (with all fractions being rounded down to the nearest
whole number of Suncor Shares) (the ‘‘Reduced Suncor Shareholder Elected Amount’’) as
is equal to the following formula:

 

	
  Suncor Transfer
  Limit

  	
   

  	
  x  Original Suncor Shareholder

  
	
  Aggregate Suncor
  Shareholder Elected Amount

  	
   

  	
    Elected Amount

  

 

And each such Suncor
Electing Shareholder shall (i) be deemed to have elected to transfer to
Subco 4 such number of Suncor Shares as is equal to the Reduced Suncor
Shareholder Elected Amount of such Suncor Electing Shareholder and (ii) be
deemed to have not elected to transfer to Subco 4 the balance of the Suncor
Shares in respect of which the Suncor Electing Shareholder otherwise elected in
the Filed Letter of Transmittal and such Suncor Shares shall be converted to
Amalco Shares upon the Arrangement in accordance with subsection 2.2(f)(xv)(C) and
all such elections made in the Filed Letters of Transmittal shall be amended
accordingly; and

 

(c)      any Suncor Shares held by an Eligible Suncor Shareholder who: (i) does
not deposit with the Depositary a validly completed and duly signed Letter of
Transmittal and Election Form prior to the Suncor Election Deadline, (ii) otherwise
fails to comply with the requirements of subsection 2.4(a) and the Letter
of Transmittal and Election Form, or (iii) fails to elect to exchange the
Suncor Shares held by such Suncor Eligible Shareholder as contemplated by
subsections 2.2(d) and 2.2(e), shall be converted to Amalco Shares upon
the Arrangement in accordance with subsection 2.2(f)(xv)(C).

 

2.5      Transfer of Petro-Canada Shares to Subco 2

 

With
respect to each Petro-Canada Electing Shareholder, upon the transfer of
Petro-Canada Shares to Subco 2 pursuant to Section 2.2(b) and the
issuance of Subco 1 Non-Voting Shares to the Petro-Canada Electing Shareholder
pursuant to Section 2.2(c):

 

(a)      such Petro-Canada Electing Shareholder shall
cease to be the holder of the Petro-Canada Shares so transferred to Subco 2 and
the name of such Petro-Canada Electing Shareholder shall be removed from the
register of holders of Petro-Canada Shares in respect of the Petro-Canada
Shares transferred to Subco 2;Subco 2 shall become the holder of such
Petro-Canada Shares and shall be added to the register of holders of
Petro-Canada Shares; and

 

(b)      the name of such Petro-Canada Electing Shareholder shall be added to
the register of holders of Subco 1 Non-Voting Shares.

 

2.6      Transfer of Suncor Shares to Subco 4

 

With respect to each Suncor
Electing Shareholder, upon the transfer of Suncor Shares to Subco 4 pursuant to
Section 2.2(d) and the issuance of Subco 3 Non-Voting Shares to the
Suncor Electing Shareholder pursuant to Section 2.2(e):

 

 

(a)      such Suncor Electing Shareholder shall cease to be the holder of the
Suncor Shares so transferred to Subco 4 and the name of such Suncor Electing
Shareholder shall be removed from the register of holders of Suncor Shares in
respect of the Suncor Shares transferred to Subco 4;

 

(b)      Subco 4 shall become the holder of such Suncor Shares and shall be
added to the register of holders of Suncor Shares; and

 

(c)      the name of such Suncor Electing Shareholder shall be added to the
register of holders of Subco 3 Non-Voting Shares.

 

 

2.7      Notice of Pro-Ration

 

In the event the
Petro-Canada Transfer Limit or the Suncor Transfer Limit is exceeded, Amalco
shall issue a press release following the Effective Time as to the proportion
of Suncor Shares or Petro-Canada Shares, as applicable, in respect of which
elections by Suncor Electing Shareholders or Petro-Canada Electing Shareholders
were reduced.

 

2.8      Stated Capital

 

Upon issuance in accordance
with the Arrangement:

 

(a)      the aggregate stated capital of the Subco 1 Non-Voting Shares issued to
Electing Petro-Canada Shareholders pursuant to subsection 2.2(c) shall be
set at an amount equal to the aggregate paid-up capital for the purposes of the
Tax Act of the Petro-Canada Shares transferred to Subco 2 pursuant to
subsection 2.2(b); and

 

(b)      the aggregate stated capital of the Subco 3 Non-Voting Shares issued to
Electing Suncor Shareholders pursuant to subsection 2.2(e) shall be set at
an amount equal to the aggregate paid-up capital for the purposes of the Tax
Act of the Suncor Shares transferred to Subco 4 pursuant to subsection 2.2(d).

 

2.9      Evidence of Ownership of Shares

 

The issuance of the Subco 1
Non-Voting Shares to the Electing Petro-Canada Shareholders pursuant to
subsection 2.2(c) and the issuance of the Subco 3 Non-Voting Shares to the
Electing Suncor Shareholders pursuant to subsection 2.2(e) shall be
evidenced through additions to the share registries maintained on behalf of
Subco 1 in respect of the Subco 1 Non-Voting Shares and Subco 3 in respect of
the Subco 3 Non-Voting Shares and no certificates will be issued for such
securities as part of the Plan of Arrangement.

 

ARTICLE III

RIGHTS OF DISSENT

 

3.1      Rights of Dissent for Suncor
Shareholders

 

Suncor Shareholders may
exercise rights of dissent with respect to the Suncor Shares held by such
Suncor Shareholder pursuant to and in the manner set forth in section 190 of
the CBCA and this Section 3.1 in connection with the Arrangement; provided
that, notwithstanding subsection 190(5) of the CBCA, the written objection
to the Arrangement Resolution referred to in subsection 190(5) of the CBCA
must be received by Suncor not later than 5:00 p.m. (Calgary time) on the
second business day immediately preceding the Suncor Shareholders’ Meeting.
Suncor Shareholders who duly exercise such rights of dissent and who:

 

 

(a)      are ultimately entitled to be
paid fair value for their Suncor Shares shall be deemed not to have exchanged
their Suncor Shares for Amalco Shares pursuant to the Arrangement, to the
extent the fair value therefor is paid by Amalco, and such Suncor Shares shall
be cancelled in accordance with the Arrangement and will not be exchanged for
Amalco Shares in accordance with the Arrangement; or

 

(b)      are ultimately not entitled, for any reason, to be
paid fair value for their Suncor Shares shall be deemed to have participated in
the Arrangement on the same basis as a non-dissenting holder of Suncor Shares
who is not a Suncor Electing Shareholder and shall receive Amalco Shares in
exchange for their Suncor Shares on the basis determined in accordance with
subsection 2.2(f)(xv)(C),

 

but
in no case shall Amalco or any other Person be required to recognize such
holders as Suncor Shareholders after the Effective Time, and the names of such
Suncor Shareholders shall be deleted from the registers of Suncor Shareholders
at the Effective Time.

 

3.2      Rights of Dissent for Petro-Canada Shareholders

 

Petro-Canada Shareholders
may exercise rights of dissent with respect to the Petro-Canada Shares held by
such Petro-Canada Shareholder pursuant to and in the manner set forth in
section 190 of the CBCA and this Section 3.2 in connection with the
Arrangement; provided that, notwithstanding subsection 190(5) of the CBCA,
the written objection to the Arrangement Resolution referred to in subsection
190(5) of the CBCA must be received by Petro-Canada not later than 5:00 p.m.
(Calgary time) on the second business day immediately preceding the
Petro-Canada Shareholders’ Meeting. Petro-Canada Shareholders who duly exercise
such rights of dissent and who:

 

(a)     are ultimately entitled to be paid fair value for their Petro-Canada
Shares shall be deemed not to have exchanged their Petro-Canada Shares for
Amalco Shares pursuant to the Arrangement, to the extent the fair value
therefor is paid by Amalco, and such Petro-Canada Shares shall be cancelled in
accordance with the Arrangement and will not be exchanged for Amalco Shares in
accordance with the Arrangement; or

 

(b)    are ultimately not entitled, for any reason, to be paid fair value for
their Petro-Canada Shares shall be deemed to have participated in the
Arrangement on the same basis as a non-dissenting holder of Petro-Canada Shares
who is not a Petro-Canada Electing Shareholder and shall receive Amalco Shares
in exchange for their Petro-Canada Shares on the basis determined in accordance
with subsection 2.2(f)(xv)(D),

 

but in no case shall Amalco
or any other Person be required to recognize such holders as Petro-Canada
Shareholders after the Effective Time, and the names of such Petro-Canada
Shareholders shall be deleted from the registers of Petro-Canada Shareholders
at the Effective Time.

 

 

ARTICLE IV

CERTIFICATES AND
FRACTIONAL SHARES

 

4.1      Issuance of Certificates
Representing Amalco Shares

 

Upon surrender to the
Depositary for cancellation of a certificate which immediately prior to the
Effective Time represented one or more Suncor Shares or Petro-Canada Shares
that were (i) exchanged for Subco 3 Non-Voting Shares or Subco 1
Non-Voting Shares; and/or (ii) converted into one or more Amalco Shares
under the Arrangement, together with such other documents and instruments as
would have been required to effect the transfer of the shares formerly
represented by such certificate under the CBCA and the by-laws of Suncor or
Petro-Canada, as applicable, and such additional documents and instruments as
the Depositary may reasonably require, the holder of such surrendered
certificate shall be entitled to receive in exchange therefor, and the
Depositary shall deliver to such holder, a certificate representing that number
(rounded in accordance with Section 4.3) of Amalco Shares which such
holder has the right to receive (together with any dividends or distributions
with respect thereto pursuant to Section 4.2), and the certificate so
surrendered shall forthwith be cancelled. In the event of a transfer of
ownership of Suncor Shares or Petro-Canada Shares that is not registered in the
transfer records of Suncor or Petro-Canada, as applicable, a certificate
representing the proper number of Amalco Shares may be issued to the transferee
if the certificate representing such Suncor Shares or Petro-Canada Shares, as
applicable, is presented to the Depositary, accompanied by all documents
required to evidence and effect such transfer. Until surrendered as
contemplated by this Section 4.1, each certificate which immediately prior
to the Effective Time represented Suncor Shares or Petro-Canada Shares that
were exchanged for Subco 3 Non-Voting Shares or Subco 1 Non-Voting Shares;
and/or converted into Amalco Shares shall be deemed at all times after the
Effective Time to represent only the right to receive upon such surrender (i) the
certificate representing Amalco Shares as contemplated by this Section 4.1,
and (ii) any dividends or distributions with a record date after the
Effective Time theretofore paid or payable with respect to Amalco Shares as
contemplated by Section 4.2.

 

4.2      Distributions with Respect to Unsurrendered
Certificates

 

No dividends or other
distributions declared or made after the Effective Time with respect to Amalco
Shares with a record date after the Effective Time shall be paid to the holder
of any unsurrendered certificate which immediately prior to the Effective Time
represented outstanding Suncor Shares or Petro-Canada Shares that were
exchanged pursuant to the Arrangement unless and until the holder of record of
such certificate shall surrender such certificate in accordance with Section 4.1.
Subject to applicable Law, at the time of such surrender of any such
certificate, there shall be paid to the holder of record of the certificates
representing whole Suncor Shares or Petro-Canada Shares, without interest, (i) the
amount of dividends or other distributions with a record date after the
Effective Time theretofore paid with respect to such whole Amalco Share, and (ii) on
the appropriate payment date, the amount of dividends or other distributions
with a record date after the Effective Time but prior to surrender and a
payment date subsequent to surrender payable with respect to such whole Amalco
Share, as the case may be.

 

4.3      No Fractional Shares

 

No certificates or scrip
representing fractional Amalco Shares shall be issued upon the surrender for
exchange of certificates pursuant to Section 4.1 and no dividend, stock
split or other change in the capital structure of Amalco shall relate to any
such fractional security and such fractional interests shall not entitle the
owner thereof to exercise any rights as a security holder of Amalco. In lieu of
any fractional Amalco Shares, a shareholder otherwise entitled to a fractional
interest in an Amalco Share, shall receive the nearest whole number of Amalco
Shares as applicable (with fractions equal to exactly 0.5 being rounded up).

 

 

4.4      Lost Certificates

 

In the event any certificate which immediately prior
to the Effective Time represented one or more outstanding Suncor Shares or
Petro-Canada Shares that were exchanged pursuant to the Arrangement shall have
been lost, stolen or destroyed, upon the making of an affidavit of that fact by
the Person claiming such certificate to be lost, stolen or destroyed,
the Depositary will issue in exchange for such lost, stolen or destroyed
certificate, one or more certificates representing one or more Amalco Shares
(and any dividends or distributions with respect thereto pursuant to Section 4.2)
deliverable in accordance with such holder’s Letter of Transmittal and Election
Form. When authorizing such payment in exchange for any lost, stolen or
destroyed certificate, the Person to whom certificates representing Amalco
Shares are to be issued shall, as a condition precedent to the issuance
thereof, give a bond satisfactory to Amalco and its transfer agents in such sum
as Amalco may direct or otherwise indemnify Amalco in a manner satisfactory to
Amalco against any claim that may be made against Amalco with respect to the
certificate alleged to have been lost, stolen or destroyed.

 

4.5      Extinction of Rights

 

Subject to any applicable
legislation relating to unclaimed personal property, any certificate which
immediately prior to the Effective Time represented outstanding Suncor Shares
or Petro-Canada Shares that are exchanged pursuant to the Arrangement and not
deposited with all
other instruments required by Section 4.1
on or prior to the sixth anniversary of the Effective Date, shall cease to
represent a claim or interest of any kind or nature as a shareholder of Amalco.
On such date, the Amalco Shares to which the former registered holder of the
certificate referred to in the preceding sentence was ultimately entitled shall
be deemed to have been surrendered to Amalco, together with all entitlements to dividends, distributions and interest thereon held for
such former registered holder.

 

4.6      Withholding Rights

 

Amalco and the Depositary
shall be entitled to deduct and withhold from any dividend or consideration
otherwise payable to any holder of Suncor Shares or Petro-Canada Shares, such
amounts as Amalco or the Depositary are required or permitted to deduct and
withhold with respect to such payment under the Tax Act, the U.S. Tax Code or
any provision of provincial, state, local or foreign Tax Law, in each case as
amended. To the extent that amounts are so withheld, such withheld amounts
shall be treated for all purposes hereof as
having been paid to the holder of the shares in respect of which such deduction
and withholding was made, provided that such withheld amounts are actually
remitted to the appropriate taxing authority. To the extent that the amount so
required or permitted to be deducted or withheld from any payment to a holder
exceeds the cash component, if any, of the consideration otherwise payable to
the holder, Amalco and the Depositary are hereby authorized to sell or
otherwise dispose of such portion of the Amalco Shares otherwise issuable to
the holder as is necessary to provide sufficient funds to Amalco or the
Depositary, as the case may be, to enable it to comply with such deduction or
withholding requirement and Amalco or the Depositary shall notify the holder
thereof and remit the applicable portion of the net proceeds of such sale to
the appropriate taxing authority.

 

ARTICLE
V

AMENDMENTS

5.1      Amendments to Plan of
Arrangement

 

(a)      Suncor and Petro-Canada may amend, modify
and/or supplement this Plan of Arrangement at any time and from time to time
prior to the Effective Time, provided that each such amendment, modification
and/or supplement must (i) be set out in writing, (ii) be approved by
Suncor and Petro-Canada, (iii) filed with the Court and, if made following
the Suncor Shareholders’ Meeting or Petro-Canada Shareholders’ Meeting,
approved by the Court and (iv) communicated to Petro-Canada Shareholders
and Suncor Shareholders, as applicable, if and as required by the Court.

 

 

(b)      Any amendment, modification or supplement to
this Plan of Arrangement may be proposed by Suncor or Petro-Canada at any time
prior to the Suncor Shareholders’ Meeting or Petro-Canada Shareholders’ Meeting
(provided that the other Party shall have consented thereto in writing) with or
without any other prior notice or communication, and if so proposed and
accepted by the Persons voting at the Suncor Shareholders’ Meeting or Petro-Canada
Shareholders’ Meeting (other than as may be required under the Interim Order),
shall become part of this Plan of Arrangement for all purposes.

 

(c)      Any amendment, modification or supplement to this Plan of Arrangement
that is approved or directed by the Court following the Suncor Shareholders’
Meeting or Petro-Canada Shareholders’ Meeting shall be effective only if (i) it
is consented to in writing by each of Suncor and Petro-Canada (in each case,
acting reasonably), and (ii) if required by the Court, it is consented to
by Suncor Shareholders or Petro-Canada Shareholders, as applicable, voting in
the manner directed by the Court.

 

(d)      Any amendment, modification or supplement to this Plan of Arrangement
may be made following the Effective Date unilaterally by Amalco, provided that
it concerns a matter which, in the reasonable opinion of Amalco, is of an
administrative nature required to better give effect to the implementation of
this Plan of Arrangement and is not adverse to the economic interest of any
former Suncor Shareholders or Petro-Canada Shareholders.

 

ARTICLE VI

FURTHER ASSURANCES

 

6.1      Notwithstanding

 

Notwithstanding
that the transactions and events set out herein shall occur and shall be deemed
to occur in the order set out in this Plan of Arrangement without any further
act or formality, each of the Parties to the Arrangement Agreement shall make,
do and execute, or cause to be made, done and executed, all such further acts, deeds, agreements, transfers, assurances,
instruments or documents as may reasonably be required by either of them in
order further to document or evidence any of the transactions or events set out
herein.

 

 

SCHEDULE A TO PLAN OF ARRANGEMENT

SHARE TERMS

 

1.        AMALCO SHARES

 

The rights, privileges,
restrictions and conditions attaching to the common shares of Amalco (the ‘‘Amalco
Shares’’) are as follows:

 

1.1      Voting

 

Holders
of Amalco Shares shall be entitled to receive notice of and to attend any
meeting of the shareholders of Amalco and shall be entitled to one vote in
respect of each Amalco Share held at such meeting, except a meeting of holders
of a particular class or series of shares other than Amalco Shares who are
entitled to vote separately as a class or series at such meeting.

 

1.2      Dividends

 

Subject
to the rights, privileges, restrictions and conditions attaching to any other
class of shares of Amalco ranking in priority to or ratably with the Amalco
Shares, holders of Amalco Shares shall be entitled to receive dividends if, as
and when declared by the directors of Amalco out of the assets of Amalco
properly applicable to the payment of dividends in such amounts and payable in
such manner as the directors of Amalco may from time to time determine.

 

1.3      Liquidation

 

In
the event of the liquidation, dissolution or winding up of Amalco or any other
distribution of the property or assets of Amalco among its shareholders for the
purpose of winding up its affairs, holders of Amalco Shares shall, subject to
the rights of the holders of any other class of shares of Amalco entitled to
receive the property or assets of Amalco upon such a liquidation, dissolution,
winding up or other distribution in priority to or ratably with holders of
Amalco Shares, be entitled to receive the remaining property and assets of
Amalco.

 

2.        SENIOR PREFERRED SHARES

 

The Senior Preferred Shares,
as a class, shall have attached thereto the following rights, privileges,
restrictions and conditions:

 

2.1      Directors’ Right to Issue in One or
More Series

 

The
Senior Preferred Shares may be issued at any time or from time to time in one
or more series. Before any shares of a series are issued, the board of
directors of Amalco shall fix the number of shares that will form such series
and shall, subject to the limitations set out in the Articles, determine the
designation, rights, privileges, restrictions and conditions to be attached to
the Senior Preferred Shares of such series, the whole subject to the filing
with the Director (as defined in the Canada
Business Corporations Act (the ‘‘Act’’)) of Articles of Amendment containing
a description of such series including the rights, privileges, restrictions and
conditions determined by the board of directors of Amalco.

 

 

2.2      Ranking of the Senior Preferred
Shares

 

The Senior Preferred Shares
of each series shall rank on a parity with the Senior Preferred Shares of every
other series with respect to dividends and return of capital and shall be
entitled to a preference over the Junior Preferred Shares and the Amalco Shares
of Amalco and over any other shares ranking junior to the Senior Preferred
Shares with respect to priority in payment of dividends and in the distribution
of assets in the event of the liquidation, dissolution or winding-up of Amalco,
whether voluntary or involuntary, or any other distribution of the assets of
Amalco among its shareholders for the purpose of winding up its affairs. If any
cumulative dividends, whether or not declared, or declared non-cumulative
dividends or amounts payable on return of capital are not paid in full in
respect of any series of the Senior Preferred Shares, the Senior Preferred
Shares of all series shall participate rateably in respect of such dividends in
accordance with the sums that would be payable on such shares if all such
dividends were declared and paid in full, and in respect of such return of
capital in accordance with the sums that would be payable on such return of
capital if all sums so payable were paid in full; provided,
however, that if there are insufficient assets to satisfy in full all such claims as aforesaid, the claims of the holders of the Senior
Preferred Shares with respect to return of capital shall be paid and satisfied
first and any assets remaining thereafter shall be applied towards the payment
and satisfaction of claims in respect of dividends. The Senior Preferred Shares
of any series may also be given such other preferences not inconsistent with
the rights, privileges, restrictions and conditions attached to the Senior
Preferred Shares as a class over the Junior Preferred Shares and the Amalco
Shares of Amalco and over any other shares ranking junior to the Senior
Preferred Shares as may be determined in the case of such series of Senior
Preferred Shares.

 

2.3      Voting Rights

 

Except
as hereinafter referred to or as required by law or unless provision is made in
the Articles relating to any series of Senior Preferred Shares that such series
is entitled to vote, the holders of the Senior Preferred Shares as a class
shall not be entitled as such to receive notice of, to attend or to vote at any
meeting of the shareholders of Amalco.

 

2.4      Amendment with Approval of
Holders of Senior Preferred Shares

 

The
rights, privileges, restrictions and conditions attached to the Senior
Preferred Shares as a class may be added to, changed or removed but only with
the approval of the holders of the Senior Preferred Shares given as hereinafter
specified.

 

2.5      Approval of Holders of the
Senior Preferred Shares

 

The
approval of the holders of the Senior Preferred Shares to add to, change or
remove any right, privilege, restriction or condition attaching to the Senior
Preferred Shares as a class or in respect of any other matter requiring the
consent of the holders of the Senior Preferred Shares may be given in such
manner as may then be required by law, subject to a minimum requirement that
such approval be given by resolution signed by all the holders of the Senior
Preferred Shares or passed by the affirmative vote of at least 2/3 of the votes cast at a meeting of the holders
of the Senior Preferred Shares duly called for that purpose.

 

The
formalities to be observed with respect to the giving of notice of any such
meeting or any adjourned meeting, the quorum required therefor and the conduct
thereof shall be those from time to time prescribed by the by-laws of Amalco
with respect to meetings of shareholders, or if not so prescribed, as required
by the Act as in force at the time of the meeting. On every poll taken at every
meeting of the holders of the Senior Preferred Shares as a class, or at any
joint meeting of the holders of two or more series of Senior Preferred Shares,
each holder of Senior Preferred Shares entitled to vote thereat shall have one
vote in respect of each $1.00 of the issue price of each Senior Preferred Share
held.

 

 

3.         JUNIOR PREFERRED SHARES

 

The
Junior Preferred Shares, as a class, shall have attached thereto the following
rights, privileges, restrictions and conditions:

 

3.1      Directors’ Right to Issue
in One or More Series

 

The Junior Preferred Shares
may be issued at any time or from time to time in one or more series. Before
any shares of a series are issued, the board of directors of Amalco shall fix
the number of shares that will form such series and shall, subject to the
limitations set out in the Articles, determine the designation, rights,
privileges, restrictions and conditions to be attached to the Junior Preferred
Shares of such series, the whole subject to the filing with the Director (as
defined in the Act) of Articles of Amendment containing a description of such
series including the rights, privileges, restrictions and conditions determined
by the board of directors of Amalco.

 

3.2      Ranking of the Junior Preferred Shares

 

The
Junior Preferred Shares of each series shall rank on a parity with the Junior
Preferred Shares of every other series with respect to dividends and return of
capital and shall, subject to the prior rights of the holders of the Senior
Preferred Shares, be entitled to a preference over the Amalco Shares of Amalco
and over any other shares ranking junior to the Junior Preferred Shares with
respect to priority in payment of dividends and in the distribution of assets
in the event of the liquidation, dissolution or winding-up of Amalco, whether
voluntary or involuntary, or any other distribution of the assets of Amalco
among its shareholders for the purpose of winding up its affairs. If any
cumulative dividends, whether or not declared, or declared non-cumulative
dividends or amounts payable on return of capital are not paid in full in
respect of any series of the Junior Preferred Shares, the Junior Preferred
Shares of all series shall participate rateably in respect of such dividends in
accordance with the sums that would be payable on such shares if all such
dividends were declared and paid in full, and in respect of such return of
capital in accordance with the sums that would be payable on such return of
capital if all sums so payable were paid in full; provided, however, that if there are
insufficient assets to satisfy in full all such claims as
aforesaid, the claims of the holders of the Junior Preferred Shares with
respect to return of capital shall be paid and satisfied first and any assets
remaining thereafter shall be applied towards the payment and satisfaction of
claims in respect of dividends. The Junior Preferred Shares of any series may
also be given such other preferences not inconsistent with the rights,
privileges, restrictions and conditions attached to the Junior Preferred Shares
as a class over the Amalco Shares of Amalco and over any other shares ranking
junior to the Junior Preferred Shares as may be determined in the case of such
series of Junior Preferred Shares.

 

3.3      Voting Rights

 

Except
as hereinafter referred to or as required by law or unless provision is made in
the Articles relating to any series of Junior Preferred Shares that such series
is entitled to vote, the holders of the Junior Preferred Shares as a class
shall not be entitled as such to receive notice of, to attend or to vote at any
meeting of the shareholders of Amalco.

 

3.4      Amendment with Approval of Holders of
Junior Preferred Shares

 

The
rights, privileges, restrictions and conditions attached to the Junior
Preferred Shares as a class may be added to, changed or removed but only with
the approval of the holders of the Junior Preferred Shares given as hereinafter
specified.

 

 

3.5      Approval of Holders of the Junior Preferred
Shares

 

The
approval of the holders of the Junior Preferred Shares to add to, change or
remove any right, privilege, restriction or condition attaching to the Junior
Preferred Shares as a class or in respect of any other matter requiring the
consent of the holders of the Junior Preferred Shares may be given in such
manner as may then be required by law, subject to a minimum requirement that
such approval be given by resolution signed by all the holders of the Junior
Preferred Shares or passed by the affirmative vote of at least 2/3 of the votes cast at a meeting of the holders
of the Junior Preferred Shares duly called for that purpose.

 

The
formalities to be observed with respect to the giving of notice of any such
meeting or any adjourned meeting, the quorum required therefor and the conduct
thereof shall be those from time to time prescribed by the by-laws of Amalco
with respect to meetings of shareholders, or if not so prescribed, as required
by the Act as in force at the time of the meeting. On every poll taken at every
meeting of the holders of the Junior Preferred Shares as a class, or at any
joint meeting of the holders of two or more series of Junior Preferred Shares,
each holder of Junior Shares entitled to vote thereat shall have one vote in
respect of each $1.00 of the issue price of each Junior Preferred Share held.

 

4.         INTERPRETATION

 

In this Schedule A, all
terms that are not defined have the meanings attributed to those terms in the Petro-Canada Public Participation Act.

 

 

SCHEDULE B TO PLAN OF ARRANGEMENT

OWNERSHIP AND VOTING RESTRICTIONS

 

1.         Interpretation

 

1.1       In this
Schedule B, all terms that are not defined have the meanings attributed to
those terms in the Petro-Canada Public
Participation Act and:

‘‘directors’
determination’’ and similar expressions mean a determination made by the
directors of Amalco in accordance with section 10;

‘‘excess
voting shares’’ means voting shares held, beneficially owned or controlled in
contravention of the individual share constraint;

‘‘individual
share constraint’’ has the meaning set forth in subsection 2.1;

‘‘principal
stock exchange’’ means, at any time, the stock exchange in Canada on which the
highest volume of voting shares is generally traded at that time, as determined
by the directors of Amalco;

‘‘sell-down
notice’’ has the meaning set forth in subsection 3.1;

‘‘shareholder
default’’ has the meaning set forth in paragraph 3.1(d);

‘‘shareholder’s
declaration’’ means a declaration made in accordance with section 11; and

‘‘suspension’’
has the meaning set forth in subsection 4.1 and ‘‘suspend’’, ‘‘suspended’’ and
similar expressions have corresponding meanings.

 

1.2       The provisions of subsections 9(3) to 9(8) of the Petro-Canada Public Participation Act, as
amended from time to time, are deemed to be incorporated in this Schedule B.
Any provision of this Schedule B that may be read in a manner that is
inconsistent with the Petro-Canada Public
Participation Act shall be read so as to be consistent therewith.

 

1.3       For greater certainty, no person is presumed to be an associate of any
other person for purposes of paragraph 9(5)(g) of the Petro-Canada Public Participation Act solely
by reason that one of them has given the other the power to vote or direct the
voting of voting shares of a class of voting shares at a meeting of the holders
of that class pursuant to a revocable proxy where the proxy is solicited solely
by means of an information circular issued in a public solicitation of proxies
that is made in respect of all voting shares of that
class and in accordance with applicable law.

 

1.4       For the purposes of this Schedule B:

 

(a)      where voting shares of
Amalco are held, beneficially owned or controlled by two or more persons jointly, the
number of voting shares held, beneficially owned or controlled by each such
person shall include the number of voting shares held, beneficially owned or
controlled jointly with such other persons; and

 

(b)      references to shares ‘‘of’’ a person are to shares held, beneficially
owned or controlled, directly or indirectly, otherwise than by way of security
only, by that person.

 

1.5       In this Schedule B, except where the context requires to the contrary,
words importing the singular shall include the plural and vice versa and words
importing gender shall include masculine, feminine and neuter genders.

 

 

2.         Individual Share Constraint

 

2.1       No person, together with the associates of that person, shall hold,
beneficially own or control, directly or indirectly, otherwise than by way of
security only, in the aggregate voting shares to which are attached more than
twenty per cent (20%) of the votes that may ordinarily be cast to elect
directors of Amalco, other than votes that may be so cast by or on behalf of
the Minister. (The foregoing prohibition is referred to in this Schedule B as
the ‘‘individual share constraint’’.)

 

2.2       In the
event that it appears from the central securities register of Amalco that any
person, together with the associates of that person, is in contravention of the
individual share constraint:

 

(a)      Amalco shall not accept any subscription for voting shares from that
person or any associate of that person;

 

(b)     Amalco shall not issue any voting shares to that person or any
associate of that person; and

 

(c)     Amalco shall not register or otherwise recognize the transfer of any
voting shares to that person or any associate of that person.

 

2.3       In the
event of a directors’ determination that any person, together with the associates
of that person, is in contravention of the individual share constraint:

 

(a)     Amalco shall not accept any subscription for voting shares from that
person or any associate of that person;

 

(b)     Amalco shall not issue any voting shares to that person or any
associate of that person;

 

(c)     Amalco shall not register or otherwise recognize the transfer of any
voting shares to that person or any associate of that person;

 

(d)     no person may, in person or by proxy, exercise the right to vote any of
the voting shares of that person or of any associate of that person;

 

(e)     subject to subsection 9.1, Amalco shall not declare or pay any
dividend, and or make any other distribution:

 

(i)        on any of the excess voting shares of that person or of any associate
of that person; or

 

(ii)       if the directors of Amalco determine that the
contravention of the individual share constraint was intentional and that it
would not be inequitable to do so, on all of the voting shares
of that person and of each associate of that person; 

 

and any entitlement to such dividend or other distribution shall be
forfeited; and

 

(f)      Amalco shall send a sell-down notice to the registered holder of the
voting shares of that person and of each associate of that person.

 

2.4       In the event that it appears from the central securities register of
Amalco that, or in the event, of a directors’ determination that, any person,
together with the associates of that person, after any proposed subscription,
issue or transfer of voting shares, would be in contravention of the individual
share constraint, Amalco shall not:

 

 

(a)      accept the proposed subscription for voting shares from;

 

(b)      issue the proposed voting shares to; or

 

(c)      register or otherwise recognize the proposed transfer of any voting
shares to;

 

that person or any associate of that person.

 

2.5       In the event of a directors’ determination that during any period any
person, together with the associates of that person, was in contravention of
the individual share constraint, the directors of Amalco may also determine
that:

 

(a)       any votes cast, in person or by proxy, during that period in respect of
the voting shares of that person or of any associate of that person shall be
disqualified and deemed not to have been cast; and

 

(b)       subject to subsection 9.1, each of that person and the associates of
that person is liable to Amalco to restore to Amalco the amount of any dividend
paid or distribution received during that period on:

 

(i)        the excess voting shares of that person and
of each associate of that person; or

 

(ii)       if the directors of Amalco determine that the contravention of the
individual share constraint was intentional and that it would not be
inequitable to do so, on all
of the voting shares of that
person and of each associate of that person.

 

3.         Sell-Down Notice

 

3.1       Any notice (a ‘‘sell-down notice’’) required to be sent to a registered
holder of voting shares pursuant to paragraph 2.3(f):

 

(a)       shall specify in reasonable detail the nature of the contravention of
the individual share constraint, the number of voting shares determined to be
excess voting shares and the consequences of the contravention specified in
section 2;

 

(b)       shall request an initial or further shareholder’s declaration;

 

(c)       shall specify a date, which shall be not less than 45 days after the
date of the sell-down notice, by which the excess voting shares are to be sold
or disposed of; and

 

(d)       shall state that unless the registered holder either:

 

(i)        sells or otherwise disposes of the excess
voting shares by the date specified in the sell-down notice on a basis that
does not result in any contravention of the individual share constraint and
provides to Amalco, in addition to the shareholder’s declaration requested
pursuant to paragraph 3.1(b), written evidence satisfactory to Amalco of such
sale or other disposition; or

 

(ii)       provides to Amalco, in addition to the shareholder’s declaration
requested pursuant to paragraph 3.1(b), written evidence satisfactory to Amalco
that no such sale or other disposition of excess voting shares is required;

 

such
default (a ‘‘shareholder default’’) shall result in the consequence of
suspension pursuant to section 4 and may result in the consequence of sale in
accordance with section 5 or redemption in accordance with section 6, in each
case without further notice to the registered holder, and shall specify in
reasonable detail the nature and timing of those consequences

 

 

3.2       In the event that, following
the sending of a sell-down notice, written evidence is submitted to Amalco for
purposes of subparagraph 3.1(d)(ii), Amalco shall assess the evidence as soon
as is reasonably practicable and in any event shall give a second notice to the
person submitting the evidence not later than 10 days after the receipt thereof
stating whether the evidence has or has not satisfied Amalco that no sale or
other disposition of excess voting shares is required. If the evidence has so
satisfied Amalco, such sell-down notice shall be cancelled and such second
notice shall so state. If the evidence has not so satisfied Amalco, such second
notice shall reiterate the statements required to be made in such sell-down
notice pursuant to paragraphs 3.1(c) and (d). In either case, the 45 day
period referred to in paragraph 3.1(c) shall be automatically extended to
the end of the 10 day period referred to in this section 3.2 if such 10 day
period extends beyond such 45 day period.

 

4.         Suspension

 

4.1
In the event of a shareholder default in respect of any registered holder of
voting shares, then, without further notice to the registered holder:

 

(a)      all of the voting shares of
the registered holder shall be deemed to be struck from the securities register
of Amalco;

 

(b)      no person may, in person or
by proxy, exercise the right to vote any of such voting shares;

 

(c)      subject to subsection 9.1,
Amalco shall not declare or pay any dividend, or make any other distribution,
on any of such voting shares and any entitlement to such dividend or other
distribution shall be forfeited;

 

(d)      Amalco shall not send any
form of proxy, information circular or financial statements of Amalco or any
other communication from Amalco to any person in respect of such voting shares;
and

 

(e)      no person may exercise any
other right or privilege ordinarily attached to such voting shares.

 

(All
of the foregoing consequences of a shareholder default are referred to in this
Schedule B as a ‘‘suspension’’.) Notwithstanding the foregoing, a registered
holder of suspended voting shares shall have the right to transfer such voting
shares on any securities register of Amalco on a basis that does not result in
contravention of the individual share constraint.

 

4.2
The directors of Amalco shall cancel any suspension of voting shares of a
registered holder and reinstate the registered holder to the securities
register of Amalco for all purposes if they determine that, following the
cancellation and reinstatement, none of such voting shares will be held,
beneficially owned or controlled in contravention of the individual share
constraint. For greater certainty, any such reinstatement shall permit, from
and after the reinstatement, the exercise of all rights and privileges attached
to the voting shares so reinstated but, subject to subsection 9.1, shall have
no retroactive effect.

 

5.         Sale

 

5.1       In the event of a
shareholder default in respect of any registered holder of voting shares,
Amalco may elect by directors’ determination to sell, on behalf of the
registered holder, the excess voting shares thereof, without further notice
thereto, on the terms set forth in this section 5 and section 7.

 

5.2       Amalco may sell any excess
voting shares in accordance with this section 5:

 

(a)      on the principal stock exchange;
or

 

(b)      if there is no principal
stock exchange, on such other stock exchange or organized market on which the
voting shares are then listed or traded as the directors of Amalco shall
determine; or

 

 

(c)      if the voting shares are not
then listed on any stock exchange or traded on any organized market, in such
other manner as the directors of Amalco shall determine.

 

5.3       The net proceeds of sale of
excess voting shares sold in accordance with this section 5 shall be the net
proceeds after deduction of any commission, tax or other cost of sale.

 

5.4       For all purposes of a sale
of excess voting shares in accordance with this section, Amalco is the agent
and lawful attorney of the registered holder and the beneficial owner of the
excess voting shares.

 

6.         Redemption

 

6.1       In the event of a
shareholder default in respect of any registered holder of voting shares and in
the event that the directors of Amalco determine either that Amalco has used
reasonable efforts to sell excess voting shares in accordance with section 5
but that such sale is impracticable or that it is likely that such sale would
have material adverse consequences to Amalco or the holders of voting shares,
Amalco may elect by directors’ determination, subject to applicable law, to
redeem the excess voting shares thereof, without further notice thereto, on the
terms set forth in this section 6 and section 7.

 

6.2       The redemption price paid by
Amalco to redeem any excess voting shares in accordance with this section 6
shall be:

 

(a)     the average of the closing
prices per share of the voting shares on the principal stock exchange (or, if
there is no principal stock exchange or if the requisite trading of voting
shares has not occurred on the principal stock exchange, such other stock
exchange or such other organized market on which such requisite trading has
occurred as the directors of Amalco shall determine) over the last 10 trading
days on which at least one board lot of voting shares has traded on the
principal stock exchange (or such other stock exchange or such other organized
market) in the period ending on the trading day immediately preceding the
redemption date; or

 

(b)      if the requisite trading of
voting shares has not occurred on any stock exchange or other organized market,
on such basis as the directors of Amalco shall determine.

 

7.         Procedures Relating to Sale
and Redemption

 

7.1       In the event of any sale or
redemption of excess voting shares in accordance with section 5 or 6,
respectively, Amalco shall deposit an amount equal to the amount of the net
proceeds of sale or the redemption price, respectively, in a special account in
any bank or trust company in Canada selected by it. The amount of the deposit,
less the reasonable costs of administration of the special account, shall be
payable to the registered holder of the excess voting shares sold or redeemed
on presentation and surrender by the registered holder to that bank or trust
company of the certificate or certificates representing the excess voting
shares. Any interest earned on any amount so deposited shall accrue to the
benefit of Amalco.

 

7.2       From and after any deposit
made pursuant to subsection 7.1, the registered holder shall not be entitled to
any of the remaining rights of a registered holder in respect of the excess
voting shares sold or redeemed, other than the right, to receive the funds so
deposited on presentation and surrender of the certificate or certificates
representing the excess voting shares sold or redeemed.

 

7.3       If a part only of the voting
shares represented by any certificate is sold or redeemed in accordance with
section 5 or 6, respectively, Amalco shall, on presentation and surrender of
such certificate and at the expense of the registered holder, issue a new
certificate representing the balance of the voting shares.

 

 

7.4       So soon as is reasonably
practicable after, and, in any event, not later than 30 days after, a deposit
made pursuant to subsection 7.1, Amalco shall send a notice to the registered
holder of the excess voting shares sold or redeemed and the notice shall state:

 

(a)      that a specified number of
voting shares has been sold or redeemed, as the case may be;

 

(b)      the amount of the net
proceeds of sale or the redemption price, respectively;

 

(c)      the name and address of the
bank or trust company at which Amalco has made the deposit of the net proceeds
of sale or the redemption price, respectively; and

 

(d)      all other relevant
particulars of the sale or redemption, respectively.

 

7.5       For greater certainty,
Amalco may sell or redeem excess voting shares in accordance with section 5 or
6, respectively, despite the fact that Amalco does not possess the certificate
or certificates representing the excess voting shares at the time of the sale
or redemption. If, in accordance with section 5, Amalco sells excess voting
shares without possession of the certificate or certificates representing the
excess voting shares, Amalco shall issue to the purchaser of such excess voting
shares or its nominee a new certificate or certificates representing the excess
voting shares sold. lf, in accordance with section 5 or section 6, Amalco sells
or redeems excess voting shares without possession of the certificate or
certificates representing the excess voting shares and, after the sale or
redemption, a person establishes that it is a bona fide purchaser of the excess
voting shares sold or redeemed, then, subject to applicable law:

 

(a)      the excess voting shares
held or beneficially owned by the bona fide purchaser are deemed to be, from
the date of the sale or redemption by Amalco, as the case may be, validly
issued and outstanding voting shares in addition to the excess voting shares
sold or redeemed; and

 

(b)      notwithstanding subsection
7.2, Amalco is entitled to the deposit made pursuant to subsection 7.1 and, in
the case of a sale in accordance with section 5, shall add the amount of the
deposit to the stated capital account for the class of voting shares issued.

 

8.         Exceptions

 

8.1
Notwithstanding section 2, the individual share constraint does not apply in
respect of voting shares of Amalco that are held:

 

(a)      by the Minister in trust for
Her Majesty in right of Canada;

 

(b)      by one or more underwriters
solely for the purpose of distributing the voting shares to the public; or

 

(c)      by any person who provides
centralized facilities for the clearing of trades in securities and is acting
in relation to trades in the voting shares solely as an intermediary in the
payment of funds or the delivery of securities, or both.

 

9.         Saving Provisions

 

9.1       Notwithstanding any other
provision of this Schedule B:

 

(a)      the directors of Amalco may determine to pay a
dividend or to make any other distribution on voting shares that would
otherwise be prohibited by any other provision of this Schedule B where the
contravention of the individual share constraint that gave rise to the
prohibition was inadvertent or of a technical nature or it would otherwise be
inequitable not to pay the dividend or make the distribution; and

 

 

(b)      where a dividend has not been paid or any other
distribution has not been made on voting shares as a result of a directors’
determination of a contravention of the individual share constraint, or where
the amount of a dividend or any other distribution has been restored to Amalco
pursuant to paragraph 2.5(b) as a result of a directors’ determination of
a contravention of the individual share constraint, the directors of Amalco
shall declare and pay the dividend, make the distribution, or refund the
restored amount, respectively, if they subsequently determine that no such contravention
occurred.

 

9.2       In the event that Amalco
suspends or redeems voting shares in accordance with section 4 or 6,
respectively, or otherwise redeems, purchases for cancellation or otherwise
acquires voting shares, and the result of such action is that any person and
the associates of that person who, prior to such action, were not in
contravention of the individual share constraint are, after such action, in
contravention, then, notwithstanding any other provision of this Schedule B,
the sole consequence of such action to that person and the associates of that
person, in respect of the voting shares of that person and of the associates of
that person held, beneficially owned or controlled at the time of such action,
shall be that the number of votes attached to those voting shares shall be
reduced to a number that is the largest whole number of votes that may be
attached to the voting shares which that person and the associates of that
person could hold, beneficially own or control from time to time in compliance
with the individual share constraint.

 

9.3       Notwithstanding any other
provision of this Schedule B, a contravention of the individual share
constraint shall have no consequences except those that are expressly provided
for in this Schedule B. For greater certainty but without limiting the
generality of the foregoing:

 

(a)      no transfer, issue or ownership of, and no title to,
voting shares;

 

(b)      no resolution of
shareholders (except to the extent that the result thereof is affected as a
result of a directors’ determination under paragraph 2.5(a)); and

 

(c)      no act of Amalco, including any transfer of property
to or by Amalco; 

 

shall be invalid or
otherwise affected by any contravention of the individual share constraint.

 

10.      Directors’ Determinations

 

10.1     The directors of Amalco
shall have the sole right and authority to administer the provisions of this
Schedule B and to make any determination required or contemplated hereunder. In
so acting, the directors of Amalco shall enjoy, in addition to the powers set
forth in this Schedule B, all of the powers necessary or desirable, in their
opinion, to carry out the intent and purpose of this Schedule B. The directors
of Amalco shall make on a timely basis all determinations necessary for the
administration of the provisions of this Schedule B and, without limiting the
generality of the foregoing, if the directors of Amalco consider that there are
reasonable grounds for believing that a contravention of the individual share
constraint has occurred or will occur, the directors shall make a determination
with respect to the matter. Any directors’ determination that is not
inconsistent with the Petro-Canada Public
Participation Act and other applicable law shall be conclusive,
final and binding except to the extent modified by any subsequent directors’
determination. Notwithstanding the foregoing, the directors of Amalco may
delegate, in whole or in part:

 

(a)      their power to make a
directors’ determination in respect of any particular matter to a committee of
the board of directors; and

 

(b)      any of their other powers
under this Schedule B in accordance with subsection 115(3) or paragraph
121(a) of the Canada Business
Corporations Act.

 

 

10.2     The directors of Amalco
shall make any directors’ determination contemplated by section 2:

 

(a)      after the relevant
shareholder’s declarations have been requested and received by Amalco, only:

 

(i)        on a basis consistent with
those shareholder’s declarations; or

 

(ii)       if the directors of Amalco
are of the opinion that the shareholder’s declarations do not contain adequate
or accurate information and they believe and have reasonable grounds for
believing that they will not be provided with shareholder’s declarations that
do contain adequate and accurate information; or

 

(b)    whether or not any
shareholder’s declaration has been requested or received by Amalco, only if the
directors of Amalco believe and have reasonable grounds for believing that they
have sufficient information to make the directors’ determination, that the
consequences of the directors’ determination would not be inequitable to those
affected by it and that it would be impractical, under all the circumstances,
to request or to await the receipt of any shareholder’s declaration.

 

10.3     In administering the
provisions of this Schedule B, including, without limitation, in making any
directors’ determination in accordance with subsection 10.2 or otherwise, the
directors of Amalco may rely on any information on which the directors consider
it reasonable to rely in the circumstances. Without limiting the generality of
the foregoing, the directors of Amalco may rely upon any shareholder’s
declaration, the securities register of Amalco, the knowledge of any director,
officer or employee of Amalco or any advisor to Amalco and the opinion of
counsel to Amalco.

 

10.4     In administering the
provisions of this Schedule B, including, without limitation, in making any
directors’ determination, the directors shall act honestly and in good faith.
Provided that the directors of Amalco so act, they shall not be liable to
Amalco and neither they nor Amalco shall be liable to any holder or beneficial
owner of voting securities or any other person for, nor with respect to any
matter arising from or related to, any act or omission to act in relation to
this Schedule B. To the extent that, in accordance with subsection 10.1, any
other person exercises the powers of the directors of Amalco under these
provisions, this subsection 10.4 applies mutatis
mutandis.

 

10.5     Any directors’ determination
required or contemplated by this Schedule B shall be expressed and conclusively
evidenced by a resolution duly adopted.

 

11.      Shareholder’s Declarations

 

11.1     For purposes of monitoring
the compliance with and of enforcing the provisions of this Schedule B, the
directors of Amalco may require that any registered holder or beneficial owner,
or any other person of whom it is, in the circumstances, reasonable to make
such request, file with Amalco or its registrar and transfer agent a completed
shareholder’s declaration. The directors of Amalco shall determine from time to
time written guidelines with respect to the nature of the shareholder’s
declaration to be requested, the times at which shareholder’s declarations are
to be requested and any other relevant matters relating to shareholder’s
declarations.

 

11.2     A shareholder’s declaration
shall be in the form from time to time determined by the directors of Amalco
pursuant to subsection 11.1 and, without limiting the generality of the
foregoing, may be required to be in the form of a simple declaration in writing
or a statutory declaration under the Canada
Evidence Act. Without limiting the generality of its contents, any
shareholder’s declaration may be required to contain information with respect
to:

 

 

(a)      whether the person is the
beneficial owner of or controls particular voting securities or whether any
other person is the beneficial owner of or controls those voting securities;
and

 

(b)      whether the person is an
associate of any other person, including whether the person and any other
person act, or are parties to an agreement or an arrangement, a purpose of
which is to require them to act, in concert with respect to their interests,
direct or indirect, in Amalco.

 

 

SCHEDULE C TO PLAN OF ARRANGEMENT

OTHER
RESTRICTIONS

 

	
  1.      INTERPRETATION

  
	
   

  	
   

  	
   

  
	
  1.1    In
  this Schedule C, all terms that are not defined have the meanings attributed
  to those terms in the Petro-Canada Public  Participation
  Act.

  
	
   

  
	
  2.      HEAD OFFICE

  
	
   

  	
   

  	
   

  
	
  2.1     The head office of Amalco shall be
  situated in Calgary, Alberta.

  
	
   

  	
   

  	
   

  
	
  3.      RESTRICTION ON
  SALE OF ASSETS

  
	
   

  	
   

  	
   

  
	
  3.1     Amalco shall not sell, transfer or
  otherwise dispose of, whether by one transaction or event or several related
  transactions or events, all or substantially all of its assets to any one
  person or group of associated persons or to non-residents, otherwise than by
  way of security only in connection with the financing of Amalco.

  
	
   

  	
   

  	
   

  
	
  4.      USE OF
  OFFICIAL LANGUAGES BY THE PUBLIC

  
	
   

  	
   

  	
   

  
	
  4.1     Amalco shall ensure that any member of the
  public can, in either official language, communicate with and obtain
  available services from:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)

  	
  the head office of Amalco;
  and

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  any of the other offices
  or facilities of Amalco and any office or facility of any of the wholly-owned
  subsidiaries of Amalco, where Amalco determines that there is significant
  demand for communications with and services from that office or facility in
  the language.

  
	
   

  	
   

  	
   

  
	
  4.2     Amalco shall adopt from time to time
  policies describing the manner in which Amalco will fulfill the requirements
  of section 4.1.

  

 

 

	
  I hereby certify this to
  be a true copy of

  	
   

  
	
  the original

  	
   order

  	
   

  
	
  Dated this

  	
   5 day of June/07

  	
   

  
	
   

  	
  

  	
   

  
	
  for
  Clerk of the Court

  	
   

  
				

 

Action No. 0901-06284

 

IN THE COURT OF QUEEN’S BENCH OF ALBERTA

JUDICIAL DISTRICT OF CALGARY

 

IN
THE MATTER OF SECTION 192 OF THE CANADA
BUSINESS CORPORATIONS ACT, R.S.C.
1985, c. C-44, AS AMENDED

 

AND
IN THE MATTER OF A PROPOSED ARRANGEMENT INVOLVING SUNCOR ENERGY INC.,
PETRO-CANADA, CERTAIN SUBSIDIARIES OF SUNCOR ENERGY INC. AND PETRO-CANADA, THE
SHAREHOLDERS OF SUNCOR ENERGY INC. AND THE SHAREHOLDERS OF PETRO-CANADA

 

	
  BEFORE
  THE HONOURABLE MADAM

  	
  )

  	
  AT THE
  COURT HOUSE AT CALGARY,

  
	
  JUSTICE
  B.E.C. ROMAINE

  	
  )

  	
  ALBERTA,
  ON FRIDAY, THE 5TH DAY OF JUNE,

  
	
   

  	
  )

  	
  2009

  

 

FINAL ORDER

 

UPON the Joint Petition (the
“Petition”) of Suncor Energy Inc.
(“Suncor”) and Petro-Canada
(collectively, the “Petitioners”)
for an Order approving a proposed arrangement involving, among others, Suncor
and Petro-Canada (the “Arrangement”)
under section 192 of the Canada  Business Corporations Act, R.S.C. 1985, c.
C 44, as amended (the “CBCA”);

 

AND UPON reading the
Petition and the Affidavits of J. Kenneth Alley, the Senior Vice President and
Chief Financial Officer of Suncor, sworn April 28, 2009 and June 4,
2009, and the Affidavits of Ernest F.H. Roberts, the Executive Vice-President and Chief Financial Officer of
Petro-Canada, sworn April 29, 2009 and June 4, 2009;

 

AND UPON hearing counsel for
Suncor and counsel for Petro-Canada;

 

AND UPON being advised that
the Director appointed under the CBCA (the “Director”)
has been served with notice of this application as required by subsection 192(5) of
the CBCA and that the Director does not intend to appear at this application;

 

AND UPON IT APPEARING that
an annual general and special meeting (the “Suncor
Meeting”) of holders of common shares of Suncor (the “Suncor Shareholders”) was called and
conducted in accordance with the Interim Order of this Honourable Court dated April 29,
2009 (the “Interim Order”), that
the required quorum was present at the Suncor Meeting, and that the Suncor
Shareholders approved the Arrangement in the manner and by the requisite
majority provided for in the Interim Order;

 

 

-
2 -

 

AND UPON IT APPEARING that
an annual general and special meeting (the “Petro-Canada
Meeting”) of holders of common shares of Petro-Canada (the “Petro-Canada Shareholders”) was called and
conducted in accordance with the Interim Order, that the required quorum was
present at the Petro-Canada Meeting, and that the Petro-Canada Shareholders
approved the Arrangement in the manner and by the requisite majority provided
for in the Interim Order;

 

AND UPON IT APPEARING that
it is not practicable to effect the transactions contemplated by the
Arrangement under any other provision of the CBCA;

 

AND UPON BEING SATISFIED
based upon the evidence presented that the terms and conditions of the
Arrangement and the procedures relating thereto are fair and reasonable to the
Suncor Shareholders and the Petro-Canada Shareholders and that the Arrangement
ought to be approved;

 

AND UPON BEING ADVISED that
the approval of the Arrangement by this Court will constitute the basis for an
exemption from the registration requirements of the United States Securities
Act of 1933, as amended, pursuant to section 3(a)(10) thereof, with
respect to the shares of the amalgamated corporation to be named Suncor Energy
Inc. to be issued under the Arrangement.

 

IT IS HEREBY ORDERED,
DECLARED, AND DIRECTED THAT:

 

1.             The Plan of
Arrangement proposed by the Petitioners in the form attached as Schedule 1.1 (a) to the Arrangement
Agreement made as of March 22, 2009 between Suncor and Petro-Canada, in
the form as it appears in Appendix “C” to the Joint Information Circular and
Proxy Statement of Suncor and Petro-Canada dated April 29, 2009 is hereby
approved by this Honourable Court under section 192 of the CBCA and will, upon
the filing of the Articles of Arrangement under the CBCA and the issuance of a
certificate of arrangement by the Director, become effective in accordance with
its terms and be binding on each of the Petitioners and all other persons.

 

2.             The terms and
conditions of the Arrangement, and the procedures relating thereto, are fair
and reasonable, substantively and procedurally, to the Suncor Shareholders and
the Petro-Canada Shareholders.

 

3.             The Articles of
Arrangement with respect to the Arrangement shall be filed pursuant to section
192 of the CBCA on such date as Suncor and Petro-Canada determine.

 

4.             The service of
notice of this application, the notices in respect of the Suncor Meeting and of
the Petro-Canada Meeting, and of the Interim Order is hereby deemed good and
sufficient.

 

 

-
3 -

 

5.             Service of this
Order shall be made on all such persons who appeared at this application,
either by counsel or in person, and upon the Director.

 

 

	
   

  	
   

  	
  

  
	
   

  	
   

  	
  J.C.Q.B.A.

  
	
   

  	
   

  	
   

  
	
  ENTERED at Calgary,
  Alberta,

  	
   

  	
   

  
	
  June 5, 2009.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ V.A. BRANDT 

  	
  

  	
   

  	
   

  
	
  CLERK OF THE COURT 

  	
   

  	
   

  
				

 

 

	
   

  	
  Action No. 0901-06284

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IN
  THE COURT OF QUEEN’S BENCH OF ALBERTA

  
	
   

  	
  JUDICIAL DISTRICT OF CALGARY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  IN THE MATTER OF SECTION
  192 OF THE CANADA BUSINESS CORPORATIONS ACT,
  R.S.C. 1985, c. C-44, AS AMENDED

  
	
   

  	
   

  
	
   

  	
  AND IN THE MATTER OF A
  PROPOSED ARRANGEMENT INVOLVING SUNCOR ENERGY INC., PETRO-CANADA, CERTAIN
  SUBSIDIARIES OF SUNCOR ENERGY INC. AND PETRO-CANADA, THE SHAREHOLDERS OF
  SUNCOR ENERGY INC. AND THE SHAREHOLDERS OF PETRO-CANADA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FINAL ORDER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Blake,
  Cassels & Graydon LLP

  
	
   

  	
  Barristers
  & Solicitors

  
	
   

  	
  3500,
  855 Second Street SW

  
	
   

  	
  Calgary,
  Alberta

  
	
   

  	
  T2P
  4J8

  
	
   

  	
   

  
	
   

  	
  Attention:
  A. Webster Macdonald Jr., Q.C. or

  David Tupper

  
	
   

  	
  Telephone:
  (403) 260-9600

  
	
   

  	
  Fax:
  (403) 260-9700

  
	
   

  	
  File
  No. 83862/17

  
	
   

  	
   

  
	
  

  	
  Macleod
  Dixon LLP

  3700, 400 – 3rd Avenue S.W.

  Calgary, Alberta

  T2P 4H2

   

  Attention:
  John J. Marshall, Q.C. or

  Roger F. Smith

  Telephone: (403) 267-8222

  Fax: (403) 264-5973

  File No. 263024

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