Document:

Exhibit 4.7

 

	
  GESCHÄFTSFÜHRER

  DIENSTVERTRAG

  	
   

  	
  SERVICE CONTRACT FOR

  MANAGING DIRECTOR

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Zwischen

  	
   

  	
  between

  
	
   

  	
   

  	
   

  
	
  Zentaris GmbH, vertreten durch die Gesellschafter-versammlung,
  Weismüllerstraße 50, 60314 Frankfurt am Main

  	
   

  	
  Zentaris GmbH, represented by its shareholders’
  meeting, Weismüllerstraße 50, 60314 Frankfurt am Main

  
	
   

  	
   

  	
   

  
	
  -
  nachstehend “Gesellschaft”
  genannt -

  	
   

  	
  -
  hereinafter referred to as the “Company”-

  
	
   

  	
   

  	
   

  
	
  vertreten
  durch die Gesellschafterversammlung

  	
   

  	
  represented
  by the shareholders’ meeting

  
	
   

  	
   

  	
   

  
	
  und

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
  Herrn Matthias Seeber, Flughafenstr. 6b, 60528
  Frankfurt am Main

  	
   

  	
  Mr Matthias Seeber, Flughafenstr. 6b, 60528
  Frankfurt am Main

  
	
   

  	
   

  	
   

  
	
   - nachstehend “Geschäftsführer” -

  	
   

  	
   - hereinafter “Managing Director” -

  

 

 

	
   Artikel 1 -
  Aufgabenbereich und Pflichten

  	
   

  	
  Article 1 - Position and Scope of Duties

  
	
   

  	
   

  	
   

  
	
  1.1       Herr Seeber ist mit Wirkung zum 1. Juli 2003 zum Geschäftsführer der
  Gesellschaft bestellt worden. Mit diesem Vertrag wird ein Dienstverhältnis
  zwischen den Parteien geschlossen. In seiner Funktion ist der Geschäftsführer
  neben dem Vorsitzenden der Geschäftsführung für die Leitung der Gesellschaft
  sowie - auf Verlangen der Gesellschafter - der Tochter- und
  Beteiligungsgesellschaften verantwortlich. Er vertritt die Gesellschaft
  gemeinsam mit einem anderen Geschäftsführer oder einem Prokuristen.

  	
   

  	
  1.1        Mr Seeber has been appointed Managing Director of the Company
  effective 1 July 2003. By way of this contract, the parties enter into a
  service relationship. In his capacity as managing director, he is besides the
  Chairman of the Management Board responsible for the management of the
  Company and - upon request of the shareholders - of subsidiaries and
  associated companies. He represents the company together with a further
  Managing Director or the “Pro-kurist” (authorized signatory).

   

  
	
   

  	
   

  	
   

  
	
  1.2       Die
  Gesellschafter behalten sich das Recht vor, jederzeit weitere Geschäftsführer
  zu bestellen und/oder andere und/oder weitere Tätigkeiten dem Geschäftsführer
  zuzuweisen oder Zuweisungen aufzuheben.

  	
   

  	
  1.2       The shareholders may, at any time, appoint additional managers
  (“Geschäftsführer”) and/or assign different and/or additional
  responsibilities to the Managing Director or to cancel responsibilities.

  

 

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  Der Geschäftsführer wird
  seine Pflichten mit der Sorgfalt eines or-dentlichen Kaufmanns nach Maß-gabe
  der Bestimmungen dieses Vertrages, des Gesellschaftsvertrages, der
  Geschäftsordnung, der allgemeinen Richtlinien und besonderen Anweisungen der
  Gesell-schafter und der Gesetze erfüllen und dabei den Belangen der
  Ge-sellschaft in wirtschaftlicher, finan-zieller und organisatorischer Hinsicht
  Sorge tragen.

  	
   

  	
  1.3       The Managing Director shall perform his duties as managing director
  by observing the diligence of a prudent businessman in accordance with the
  provisions of this Service Contract, the Company’s Articles of Associa tion,
  the Standing Orders for the Management Board, the general and specific
  directives or instruc tions given by the shareholders, and in accordance
  with the law. He will act in keeping with the economic, financial and organizational
  concerns of the company.

  
	
   

  	
   

  	
   

  
	
  1.4       Der Geschäftsführer nimmt die Rechte und Pflichten des Arbeit-gebers
  im Sinne der arbeits- und sozialrechtlichen Vorschriften wahr.

  	
   

  	
  1.4       The Managing Director will see to his rights and obligations of an
  employer according to labour and social law.

  
	
   

  	
   

  	
   

  
	
  Artikel 2 - Nebentätigkeiten

  	
   

  	
  Article 2 - Other Activities

  
	
   

  	
   

  	
   

  
	
  Der Geschäftsführer verpflichtet sich, seine ganze Arbeitszeit und
  Arbeits-kraft der Gesellschaft zu widmen. Es ist ihm während der Dauer dieses
  Vertra-ges nicht gestattet, eine bezahlte oder

  	
   

  	
  The Managing Director shall devote his full working time and ability
  to the Company’s business. Any other activity for or without remuneration
  including any part time work, is 

  

 

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  unbezahlte Tätigkeit auszuüben ein-schließlich einer
  Teilzeitbeschäftigung, es sei denn, es liegt eine ausdrückliche vorherige
  schriftliche Zustimmung der Gesellschafter vor. Die Erteilung oder Nichterteilung
  einer solchen Zustimmung steht in dem freien Ermessen der Gesellschafter.

  	
   

  	
  subject to the explicit prior written consent of the shareholders.
  The shareholders may refuse to grant such consent without giving reasons
  therefore.

  
	
   

  	
   

  	
   

  
	
  Artikel 3 - Genehmigungsbedürftige Geschäfte

  	
   

  	
  Article 3 - Transactions Subject to Consent

  
	
   

  	
   

  	
   

  
	
  Für alle Geschäfte, die über die regulä-re Tätigkeit der Gesellschaft
  hinausge-hen, bedarf der Geschäftsführer der vorherigen schriftlichen
  Zustimmung der Gesellschafter. Näheres, insbeson-dere der Umfang der
  zustimmungs-pflichtigen Geschäfte, ergibt sich aus der Geschäftsordnung der
  Geschäftsführung.

  	
   

  	
  The Managing Director shall obtain the prior written approval of the
  shareholders to effect any transactions outside the usual scope of business.
  Details, particularly with respect to such transactions that require consent
  of the Quotaholders ́ meeting, are evident from the management guidelines.

  
	
   

  	
   

  	
   

  
	
  Artikel 4 - Erfindungen

  	
   

  	
  Article 4 - Inventions

  
	
   

  	
   

  	
   

  
	
  4.1       Alle Rechte an Erfindungen, un-abhängig von ihrer Patent- oder
  Gebrauchsmusterschutzfähigkeit, an technischen Verbesserungsvor-

  	
   

  	
  4.1       All rights pertaining to inventions, whether patentable or not, and
  to proposals for technical improvements made and to 

  

 

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  schlägen und an Computersoftware, die von dem
  Geschäftsführer während der Dauer dieses Ver-trages gemacht und entwickelt
  werden (insgesamt im Folgenden “Erfindungen” genannt) stehen ausschließlich
  der Gesellschaft zu, ohne dass eine zusätzliche Vergü-tung gezahlt wird. Der
  Geschäfts-führer hat die Gesellschaft oder eine von ihr benannte Person unverzüglich
  über Erfindungen in Kenntnis zu setzen und die Gesell-schaft bei der
  Erlangung von Pa-tentschutz oder sonstigen gewerblichen Schutzrechten auf
  Wunsch zu unterstützen.

  	
   

  	
  computer software developed by the Managing
  Director (hereinafter jointly called “Inventions”) during the term of this
  Service Contract shall be deemed acquired by the Company without paying extra
  compensation therefore. The Managing Director shall inform the Company or a
  person designated by the Company of any Inventions immediately in writing and
  shall assist the Company in acquiring patent or other industrial property
  rights, if the Company so desires.

  
	
   

  	
   

  	
   

  
	
  4.2       Der vorstehende Absatz 4.1 gilt für alle Erfindungen, gleichgültig

  	
   

  	
  4.2       Subsection 4.1 above shall apply to any Inventions no matter whether

  
	
   

  	
   

  	
   

  
	
  (a)     ob
  sie im Zusammenhang mit einem Geschäftszweig der Gesellschaft stehen oder
  nicht,

  	
   

  	
  (a)        they are related to the business of the Company or not,

  
	
   

  	
   

  	
   

  
	
  (b)        ob sie auf Erfahrungen der

  	
   

  	
  (b)        they are based on experience 

  

 

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  Gesellschaft beruhen oder nicht,

  	
   

  	
  and Know-how of the Company or not, or

  
	
   

  	
   

  	
   

  
	
  (c)        ob sie aus der dem Geschäftsführer bei der Gesellschaft obliegenden
  Tätigkeit ent-standen sind oder nicht, oder

  	
   

  	
  (c)        they are emanated from such duties of activities as are to be
  performed by the Managing Director within the Company, or

  
	
   

  	
   

  	
   

  
	
  (d)        ob sie während der betriebs-üblichen Arbeitszeit oder au-ßerhalb der
  Arbeitszeit ge-macht worden sind.

  	
   

  	
  (d)        they are materialized during or outside normal business hours of the
  Company.

   

  
	
   

  	
   

  	
   

  
	
  4.3       Die Rechte der Gesellschaft an den ihr gemäß diesem Vertrag
  zuste-henden Erfindungen werden durch Änderungen dieses Vertrages und seiner
  Beendigung nicht berührt.

  	
   

  	
  4.3       The Company’s right to Inventions acquired hereunder shall in no way
  be affected by any amendments to or the termination of this Service Contract.

  
	
   

  	
   

  	
   

  
	
  Artikel 5 — Vergütung

  	
   

  	
  Article 5 - Remuneration

  
	
   

  	
   

  	
   

  
	
  5.1       Der Geschäftsführer erhält ein Bruttojahresgehalt von EUR 175.000, 00
  (einhundertfünf-undsiebzigtausend) zahlbar in

  	
   

  	
  5.1        The Managing Director shall be entitled to a gross annual salary in
  the amount of EUR 175,000.00 (one hundred 

  

 

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  zwölf gleichen monatlichen Beträgen am Ende eines
  Monats. Das Bruttojahresgehalt wird jährlich mit Wirkung zum Beginn eines
  Kalenderjahres angepasst.

  	
   

  	
  seventy-five thousand) to be paid at the end of
  each month in 12 equal monthly instalments. The annual salary will be revised
  yearly to be effective at the beginning of each calendar year.

  
	
   

  	
   

  	
   

  
	
  5.2       Der Geschäftsführer hat zusätzlich Anspruch auf einen jährlichen
  Bonus, sofern die betriebswirtschaftlichen Ergebnisse der Gesellschaft einen
  solchen rechtfertigen. Bei der Bemessung des Bonus wird neben dem
  wirtschaftlichen Erfolg der Gesellschaft auch das Erreichen individueller
  Ziele, die jähr-lich zwischen den Parteien festzulegen sind, berücksichtigt.
  Für das Geschäftsjahr 2006 soll, sofern die betriebswirtschaftlichen Ergebnisse
  der Gesellschaft dies rechtfertigen, ein Bonus in Höhe von € 50.000 gezahlt
  werden.

  	
   

  	
  5.2       The Managing Director shall additionally be entitled to an annual
  bonus, if the economic results of the company justify payment of such bonus.
  Bonus attainment will be assessed according to the economic success of the
  Company as well as the achievement of individual objectives as set forth between
  the parties on an annual basis. For fiscal year 2006 the Managing Director
  shall be entitled to a bonus of € 50,000, if the economic results of the
  company justify payment of such bonus.

  
	
   

  	
   

  	
   

  
	
  5.3        Durch Zahlung der oben genannten Vergütung sind alle Tätigkeiten des
  Geschäftsführers nach die-

  	
   

  	
  5.3       By payment of the above mentioned remuneration, all activities which
  the Managing Director has

  

 

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  sem Vertrag abgegolten. Insbesondere hat der
  Geschäftsführer keinen Anspruch auf Bezahlung von Überstunden oder Wochenendarbeit.

  	
   

  	
  to perform under this Service Contract shall be
  compensated. In particular, the Managing Director shall not be entitled to
  any additional compensation of overtime work or work during weekends.

  
	
   

  	
   

  	
   

  
	
  Artikel 6 - Nebenleistungen

  	
   

  	
  Article 6 - Other Benefits

  
	
   

  	
   

  	
   

  
	
  6.1       Reisekosten und sonstige notwendigen Auslagen, die von dem Geschäftsführer
  im Interesse der Gesellschaft aufgewendet werden, werden dem Geschäftsführer
  im Rahmen des in Deutschland steuerrechtlich Zulässigen erstattet.

  	
   

  	
  6.1       Travel expenses and other necessary expenses incurred by the Managing
  Director in the furtherance of the Company’s business shall be reimbursed
  according to the guidelines of the Company and within the framework of the
  principles applicable in Germany for tax purposes.

  
	
   

  	
   

  	
   

  
	
  6.2     Die
  Gesellschaft wird dem Geschäftsführer einen Dienstwagen entsprechend der bei
  der Gesellschaft geltenden Richtlinie für geschäftliche und private Zwecke
  zur Verfügung stellen. Alle Steuern, die durch das Recht des Geschäftsführers
  zur Privatnutzung des

  	
   

  	
  6.2       The Company shall provide the Managing Director with a company car
  according to the Company’s guideline for business and private use. The value
  of the private use per month as determined by the German tax regulations for
  the particular type of car shall

  

 

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  Dienstwagens entstehen, werden von dem
  Geschäftsführer getragen. Alle sonstigen Kosten des Dienstwagens (Betriebs-
  und Unterhaltungskosten) trägt die Gesellschaft. Im Fall einer Freistellung
  ist der Wagen zurückzugeben, ohne dass der Geschäftsführer ein
  Zurückbehaltungsrecht oder Nutzungsausfallansprüche hätte.

  	
   

  	
  constitute additional compensation to the Managing
  Director which will be subject to wage withholding tax. The costs of
  maintenance and use of the company car shall be borne by the Company. In case
  of a release from work the Company may take back the car at any time. In this
  case, the Managing Director shall have no right of retention and no damage
  compensation claim.

  
	
   

  	
   

  	
   

  
	
  Artikel 7 - Arbeitsverhinderung

  	
   

  	
  Article 7 - Inability to Perform Duties

  
	
   

  	
   

  	
   

  
	
  7.1       Der Geschäftsführer ist verpflichtet, der Gesellschaft jede
  Arbeitsverhinderung und ihre voraussichtliche Dauer unverzüglich anzuzeigen.
  Auf Verlangen sind die Gründe der Arbeitsverhinderung mitzuteilen.

  	
   

  	
  7.1      In
  case the Managing Director shall be unable to perform his duties under this
  Service Contract, he shall inform the Company of such absence and its
  prospective duration without delay. Upon request, he shall inform the Company
  for the reasons of such absence.

  
	
   

  	
   

  	
   

  
	
  7.2     Im
  Falle unverschuldeter Arbeits-

  	
   

  	
  7.2       In
  the event of incapacity to perform

  

 

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  unfähigkeit durch Krankheit oder Unfall erhält der
  Geschäftsführer bei Vorlage entsprechender ärztlicher Bescheinigungen für die
  Dauer von bis zu einem Jahr, längstens bis zur Beendigung dieses
  Dienstvertrages, sein monatliches Brutto-Grundgehalt gemäß Artikel 5 (5.1)
  dieses Vertrages weiter. Stirbt der Geschäftsführer während der Dauer dieses
  Dienstvertrages, so erhalten seine unterhaltsberechtigten Hinterbliebenen für
  einen Zeitraum von drei Monaten sein monatliches BruttoGrundgehalt gemäß
  Artikel 5 (5.1) dieses Vertrages.

  	
   

  	
  the duties under this Service Contract due to
  illness or accident and without the Managing Director ́s fault, he shall be
  entitled to a continuation of his monthly gross base salary according to Article 5.1
  of this Service Contract for a duration of up to one year or, if earlier,
  until the end of this Service Agreement, provided the relevant doctor’s
  certificates are furnished. If the Managing Director dies during the term of
  this Agreement, his dependents can claim to be paid his monthly gross base
  salary according to Article 5.1 of this Service Contract for a duration
  of three months.

  
	
   

  	
   

  	
   

  
	
  Artikel 8 – Urlaub

  	
   

  	
  Article 8 – Vacation

  
	
   

  	
   

  	
   

  
	
  8.1       Der Geschäftsführer hat Anspruch auf einen Urlaub von 30
  Arbeitstagen; Samstage werden dabei nicht mitgerechnet.

  	
   

  	
  8.1       The Managing Director shall be entitled to an annual vacation of 30
  working days excluding Saturdays.

  

 

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  8.2       Der
  Zeitpunkt seines Urlaubes ist unter Berücksichtigung der betrieblichen
  Notwendigkeiten und den persönlichen Wünschen des Geschäftsführers in
  Abstimmung mit den Gesellschaftern festzulegen.

  	
   

  	
  8.2       The
  time of vacation shall be determined in agreement with the shareholders,
  thereby taking into consideration the personal wishes of the Managing
  Director and the interests of the Company.

  
	
   

  	
   

  	
   

  
	
  Artikel 9 – Verschwiegenheitspflicht

  	
   

  	
  Article 9 – Confidentiality

  
	
   

  	
   

  	
   

  
	
  9.1       Der
  Geschäftsführer verpflichtet sich, alle ihm anvertrauten oder sonst
  bekanntgewordenen geschäftliche, betrieblichen oder technischen
  Informationen, die sich auf die Gesellschaft oder deren Konzerngesellschaften
  beziehen und vertraulichen Charakter haben, Dritten nicht zu offenbaren und nicht
  für seine eigenen Zwecke zu verwenden. Dies gilt insbesondere hinsichtlich
  der Einzelheiten der Betriebsorganisation, hinsichtlich der Beziehungen zu
  Kunden und Auftraggebern und des technischen Know-How. Diese Verpflichtung
  gilt sowohl während der Dauer dieses Anstel-

  	
   

  	
  9.1       The
  Managing Director shall not disclose to any third party or use for personal
  gain, any confidential technical or other business information which has been
  entrusted to him, or which has otherwise become known to the Managing
  Director and which relates to the Company or to any of its affiliated
  companies. In particular, no information may be disclosed concerning the
  organization of the business, the relation with customers and suppliers and
  the Company’s know-how. This obligation shall not expire upon termination of
  the Service Contract but shall continue to

  

 

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  lungsverhältnisses als auch nach seiner
  Beendigung.

  	
   

  	
  remain in force thereafter.

  
	
   

  	
   

  	
   

  
	
  9.2       Geschäftliche
  Unterlagen aller Art, einschließlich der auf dienstliche Angelegenheiten und
  Tätigkeiten sich beziehenden persönlichen Aufzeichnungen, sind sorgfältig
  aufzubewahren und dürfen nur zu geschäftlichen Zwecken verwendet werden. Das
  Anfertigen von Abschriften oder Auszügen sowie das Kopieren von Zeichnungen,
  Kostenberechnungen, Statistiken und ähnlichem und andere Ge-schäftsunterlagen
  ist nur für dienstliche Zwecke zulässig.

  	
   

  	
  9.2       Business
  records of any kind, including private notes concerning Company affairs and
  activities, shall be carefully kept and shall be used only for business
  purposes. No copies or extract or duplicates of drawings, calculations,
  statistics and the like nor of any other business records may be copied or
  extracted for purposes other than for the Company’s business.

  
	
   

  	
   

  	
   

  
	
  9.3       Bei
  Beendigung des Anstellungs-verhältnisses hat der Geschäftsführer von sich aus
  alle in seinem Besitz befindlichen Geschäftsunterlagen sowie Abschriften und
  Kopien davon herauszugeben; dem Geschäftsführer steht kein
  Zurückbehaltungsrecht zu.

  	
   

  	
  9.3       Upon
  termination of this Service Contract, the Managing Director shall return all
  business records and copies thereof. The Managing Director shall have no
  right of retention.

  

 

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  Artikel 10 - Vertragsdauer und Kündigung

  	
   

  	
  Article 10 - Term of Employment and Notice

  
	
   

  	
   

  	
   

  
	
  10.1     Dieser
  Vertrag ist fest für fünf Jahre abgeschlossen, beginnend mit dem
  Bestellungsdatum nach Art. 1.1 dieses Vertrages. Das Anstellungsverhältnis
  endet jedoch spätestens mit Ablauf des Monats, in dem der Geschäftsführer das
  65. Lebensjahr vollendet, ohne dass es einer Kündigung bedarf.

  	
   

  	
  10.1     This
  Service Contract is entered into a fixed-term period of five years, starting from the beginning of the
  appointment according to Art. 1.1. It shall, however, end without the need to
  give notice not later than the expiry of the month during which the Managing
  Director attains age of 65.

  
	
   

  	
   

  	
   

  
	
  10.2     Nach
  Beendigung des Befristungszeitraums nach Art. 10.1 wandelt sich das
  Dienstverhältnis in einen unbefristeten Vertrag. Jede Partei ist dann
  berechtigt, den Vertrag mit einer Frist von 6 Monaten zum Monatsende zu
  kündigen.

  	
   

  	
  10.2     After
  the fixed-term period under Art.10.1, this Service Contract will turn
  indefinite. In this case, either party will be entitled to terminate this
  Contract by giving 6 months prior notice effective to the end of any calendar
  month.

  
	
   

  	
   

  	
   

  
	
  10.3     Im
  Falle der Kündigung des Dienstverhältnisses nach Art. 10.2 ist die
  Gesellschaft berechtigt, den Geschäftsführer für die 6-monatige Restlaufzeit
  des Vertrages von seinen Dienstpflichten unter Fort-

  	
   

  	
  10.5     In
  case this Contract has been terminated according to Art. 10.2, the Company is
  entitled to relieve the Managing Director from work at any time. In this case
  the Company shall continue

  

 

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  zahlung seines Gehaltes zu entbinden. In diesem
  Falle kann die Gesellschaft dem Geschäftsführer das Recht einräumen, sich auch
  bereits während der Kündigungsfrist eine neue Beschäftigung zu suchen. Sollte
  er eine neue Beschäftigung aufnehmen, entfällt ab diesem Zeitpunkt die
  Pflicht der Gesellschaft zur Zahlung des Gehalts.

  	
   

  	
  to pay the salary to the Managing Director for a
  period of 6 months after the notice has become effective. In case the Company
  admits the Managing Director to start a new employment within the
  cancellation period the Company shall be relieved from its obligation to pay
  said salary from the date of the new employment.

  
	
   

  	
   

  	
   

  
	
  10.4     Die
  Kündigung bedarf der Schriftform, wobei Telefax und sonstige
  telekommunikative Übermittlungswege i. S. von § 127 Abs.2 BGB ausreichen.

  	
   

  	
  10.4     Notice
  of termination must be given in writing; fax or any other telecommunication device
  within the meaning of Sec. 127 para. 2 German Civil Code will suffice.

  
	
   

  	
   

  	
   

  
	
  10.5     Im
  Falle der Kündigung durch die Gesellschaft oder Æterna Zentaris Inc. erhält
  der Geschäftsführer eine Abfindung. Diese ist unabhängig von eventuellen
  Zahlungen gemäß Art. 10.3 und ist in jedem Fall vollständig und zusätzlich zu
  zahlen. Sie beläuft sich auf 12 Brut-tomonatsgehälter, wenn nicht ein Fall
  des Art. 10.6 vorliegt. Wenn die Voraus-

  	
   

  	
  10.5     In
  case of termination by the Company or Æterna Zentaris Inc, the Company is
  obliged to pay the Managing Director a compensation for termination in an
  amount equal to twelve (12) months of the gross annual salary, unless Art.
  10.6 applies. This compensation is independent

  

 

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  setzungen der Art. 10.6, 10.7 gegeben sind, kommt
  nur diese Sonderabfindung zum tragen, in allen anderen Fällen der
  Vertragskündigung durch die Gesellschaft oder Æterna Zentaris Inc greift nur
  dieser Art. 10.5.

  	
   

  	
  of the potential payments under Art. 10.3 above
  and becomes due fully and in addition to these potential payments. For the
  avoidance of doubt, in case Arts. 10.6 and 10.7 apply, only this Special
  Compensation has to be paid. In all other cases of termination by the Company
  or Æterna Zentaris Inc only this Art. 10.5 applies.

  
	
   

  	
   

  	
   

  
	
  10.6 Der Geschäftsführer hat Anspruch auf eine “Sonderabfindung”, wenn beide der
  folgenden Bedingungen erfüllt sind: i) es kommt zu einer “Change of Control” und ii) der Vertrag
  wird innerhalb von zwölf (12) Monaten nach einer “Change of Control” gegen den Willen des Geschäftsführers
  durch Æterna Zentaris Inc. oder die Gesellschaft (es sei denn, “aus einem triftigen Grund”) oder durch
  den Geschäftsführer aus “gutem Grund”
  gekündigt.

  	
   

  	
  10.6 The Managing Director will be entitled to a “Special compensation” if both conditions
  occur: i) there is a “change of control”,
  and ii) this Contract is terminated, except for “cause”, within a period of twelve (12) months following a “change of control”, involuntarily at the
  request of Æterna Zentaris Inc. or the Company or by the Managing Director
  for “good reason”.

  
	
   

  	
   

  	
   

  
	
  10.7  Begriffserklärungen:

  	
   

  	
  10.7  Definitions:

  

 

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  a)  Eine “Sonderabfindung” bezeichnet eine Einmalzahlung, die achtzehn
  (18) Monatsraten i) des Jahresbruttogehalts, ii) des maximalen Betrages des
  Bonus, auf den der Geschäftsführer in dem Jahr Anspruch gehabt hätte, in dem
  die “Change of Control” erfolgt
  ist, und iii) der Zusatzleistungen, berechnet auf Jahresbasis, einschließlich
  eines Zuschusses für das Dienstfahrzeug, jedoch unter Aus-schluss der
  Betriebskosten, sowie etwaiger Aktienoptionen, entspricht.

  	
   

  	
  a)  The “Special compensation” means a lump sum of the equivalent of
  eighteen (18) months of i) the gross annual salary, ii) the maximum amount of
  the bonus to which the Managing Director would have been entitled in the year
  during which a “change of control” occurred
  and iii) the benefits, calculated on a yearly basis, including car allowance
  but excluding operating costs and excluding any stock options

  
	
   

  	
   

  	
   

  
	
  b)  Eine “Change of Control” erfolgt beim Kauf oder bei der Übernahme
  des in Aktien ausgedrückten Eigentumsrechts an der Æterna Zentaris Inc.,
  welches in jedem Fall fünfzig Prozent (50%) oder mehr der Stimmrechte im
  Zusammenhang mit den zu diesem Zeitpunkt ausstehenden Wertpapieren der Æterna
  Zentaris Inc. umfasst, oder bei Übertragung aller begebenen und ausstehenden
  Aktien der Gesellschaft oder der Æterna Zentaris Inc an einen neuen
  Eigentümer.

  	
   

  	
  b)  A “change
  of control” occurred upon the purchase or the acquisition of the
  beneficial interest in securities of Æterna Zentaris Inc. representing in any
  circumstances fifty percent (50%) or more of the voting rights attaching to
  the then outstanding securities of Æterna Zentaris Inc. or the transfer of
  all issued and outstanding shares of the Company or Æterna Zentaris Inc to a
  new owner.

  

 

16

 

	
  c)  Eine Kündigung des Vertrages gegen
  den Willen des Geschäftsführers “aus einem
  triftigen Grund” schließt die folgenden Fälle ein: Wenn der
  Geschäftsführer einen Betrug, einen Diebstahl, eine Unterschlagung oder eine
  andere, ähnlich gelagerte kriminelle Handlung begeht oder sich bei der
  Erfüllung seiner Pflichten eines schwerwiegenden Fehlverhaltens oder einer
  groben Fahrlässigkeit schuldig gemacht hat.

  	
   

  	
  c)  Involuntary termination of the
  contract “for cause” includes
  the following: if the Managing Director commits any fraud, theft,
  embezzlement ot other criminal act of a similar nature and if the Managing
  Director is guilty of serious misconduct or wilful negligence in the
  performance of his duties.

  
	
   

  	
   

  	
   

  
	
  d)  Ein “guter Grund” liegt
  vor, wenn ohne ausdrückliche schriftliche Einverständniserklärung des
  Geschäftsführers irgendeiner der folgenden Tatbestände eintritt: i) eine
  wesentliche Minderung der Gesamtbezüge des Geschäftsfüh-rers; ii) eine
  wesentliche Minderung oder Änderung der Pflichten, Befugnisse, Aufgaben oder
  Verantwortlichkeiten des Geschäftsführers oder eine Änderung der Geschäfts-
  oder Betriebsstruktur der Gesellschaft oder der Æterna Zentaris Inc, die sich
  in wesentlichem Umfang auf die Befugnisse oder die

  	
   

  	
  d)  “Good
  reason” means the occurrence, without the Managing Director ́s
  express written consent, of any of the following acts: i) a material
  reduction of the Managing Director ́s total compensation; ii) a material
  reduction or change in the Managing Director ́s duties, authority,
  responsibilities, accountability or a change in the business or corporate
  structure of the Company or Æterna Zentaris Inc which materially affects the
  Managing Director ́s authority, compensation or ability to perform duties or
  responsibilities;

  

 

17

 

	
  Bezüge des Geschäftsführers oder auf seine Fähigkeit zur Ausübung
  seiner Pflichten und Aufgaben auswirkt; und iii) eine erzwungene Versetzung.

  	
   

  	
  and iii) a force relocation.

  
	
   

  	
   

  	
   

  
	
  Artikel 11- Weitere Bestimmungen

  	
   

  	
  Article 11- Final Provisions

  
	
   

  	
   

  	
   

  
	
  11.1     Änderungen
  oder Ergänzungen, dieses Vertrages bedürfen der Schriftform.

  	
   

  	
  11.1     Any
  amendments of or additions of this Service Contract shall be made in writing
  in order to be effective.

  
	
   

  	
   

  	
   

  
	
  11.2     Dieser
  Vertrag und seine Auslegung unterliegen deutschem Recht und deutschem
  Gerichtsstand am Sitz der Gesellschaft. Bei Auslegungszweifeln entscheidet die
  deutsche Fassung dieses zweisprachigen Vertragstextes.

  	
   

  	
  11.2     This
  Service Contract and its interpretation are governed by German law. The place
  of jurisdiction shall be the corporate seat of the Company. In cases of
  doubt, the German version of this bilingual Contract shall prevail.

  
	
   

  	
   

  	
   

  
	
  11.3     Dieser
  Vertrag enthält die gesamte Vereinbarung zwischen den Par-teien. Bereits
  getroffene Vereinba-rungen zwischen den Parteien über ein Arbeits oder
  Dienstverhältnis

  	
   

  	
  11.3     This
  Service Contract represents the entire agreement and understanding of the
  parties. This Contract supersedes and replaces all other previously issued
  contracts

  

 

18

 

	
  werden hiermit aufgehoben. Über diesen Vertrag
  hinausgehende schriftliche oder mündliche Ab-sprachen sind nicht getroffen
  worden.

  	
   

  	
  regarding the employment between the parties. No
  written or verbal agreements outside this Contract have been made.

  
	
   

  	
   

  	
   

  
	
  11.4     Dieser
  Vertrag ersetzt den Geschäftsführerdienstvertrag zwischen den Parteien vom
  01.07.2003.

  	
   

  	
  11.4     This
  contract replaces the Service Contract for Managing Director between the
  parties dated July 01, 2003.

  
	
   

  	
   

  	
   

  
	
  Datum:

  	
   

  	
  Date:

  
	
   

  	
   

  	
   

  
	
  Gesellschaft Geschäftsführer

  	
   

  	
  Company

  
	
   

  	
   

  	
   

  
	
  Geschäftsführer

  	
   

  	
  Managing director

  

 

19Exhibit 4.8

 

AMENDMENT # 1 TO THE SERVICE CONTRACT FOR MANAGING
DIRECTOR

ENTERED INTO ON December 9th, 2008

 

	
  BETWEEN:

  	
  ÆTERNA
  ZENTARIS GmbH,
  Weismüllerstraße 50, 60314 Frankfurt am Main

  
	
   

  	
   

  
	
   

  	
  (hereinafter
  referred to as the “Company”)

  
	
   

  	
   

  
	
  AND:

  	
  ÆTERNA
  ZENTARIS INC., a
  Corporation duly incorporated, having its head office at 1405
  Parc-Technologique Blvd., Québec, QC G1P 4P5

  
	
   

  	
   

  
	
   

  	
  (hereinafter
  referred to as the “Corporation”)

  
	
   

  	
   

  
	
  AND:

  	
  MATTHIAS
  SEEBER, domiciled
  at at [civic address redacted
  for privacy reasons],
  Frankfurt am Main

  
	
   

  	
   

  
	
   

  	
  (hereinafter
  referred to as the “Managing Director”
  or the “Executive”)

  

 

WHEREAS the
Company and the Managing Director entered into a service contract for Managing
Director on July 01, 2003;

 

WHEREAS the
service contract referred to in the first paragraph has been replaced by a
further Service Contract for Managing Director (“Service Contract”) on May 18,
2006;

 

WHEREAS the
Managing Director has since been appointed Senior Vice President Administration
and Legal Affairs of the Corporation;

 

AND WHEREAS
it has become appropriate to amend some provisions of the Service Contract in
order to take into account the above-mentioned appointment.

 

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

 

1.                                       Article 2 of the Service Contract shall
now read as follows:

 

The Managing Director shall
devote his full working time and ability to the Company’s business and also to
that of the Company’s parent company, Æterna Zentaris Inc. Any other activity
for or without remuneration including any part time work is subject to the
explicit prior written consent of the shareholders. The shareholders may refuse
to grant such consent without giving reasons therefore. The Company hereby
already consents to the Managing Director’s employment agreement with Æterna
Zentaris Inc. as its Senior Vice President, Administration and Legal Affairs.

 

1

 

2.                                       Article 5 of the Service Contract shall
now read as follows:

 

5.1                                 The
Managing Director shall be entitled to a gross annual salary in the amount of €
221,000 as of January 1, 2009 to be paid according to the Company’s
standard payroll practice. The annual salary will be revised yearly to be
effective on January 1st of each calendar year, starting January 1st, 2010.

 

5.2                                 The
Managing Director shall be
entitled to an annual target bonus, in respect of each full fiscal year of the
Company, which is from January 1 to December 31. The annual target
bonus for the 2008 fiscal year shall be € 52,500 and € 77,000
for the 2009 fiscal year. In all cases, the Managing Director’s eligibility to
such annual bonus is conditional upon the economic success of the Company and
the attainment of annual targets that shall be agreed upon between the Company
and the Managing Director. Actual bonus payments, if any, may be less than or
equal to the target.

 

5.3                                 By payment
of the above mentioned remuneration, all activities, which the Managing
Director has to perform under this Service Contract, shall be compensated. In
particular, the Managing Director shall not be entitled to any additional
compensation of overtime work or work during weekends nor shall he be entitled
to any other salary or bonus from the parent Company. For the avoidance of
doubt, nothing in this Section 5.3 shall be construed to affect Sections
10.5 and 10.6 of the Service Contract as amended by this Amendment # 1 all of
which shall remain in effect independent of the remuneration described in this Section 5.3.

 

3.                                       Sections
10.5 and 10.6 of the Service Contract shall be replaced by the following:

 

10.5                           In case of
termination by the Company or Æterna Zentaris Inc., the Company or Æterna
Zentaris Inc. shall be obliged to pay the Managing Director a compensation for
termination in:

 

(a)                      an amount equivalent
to twelve (12) months of the Managing Director’s annual Base Salary; and

 

(b)                     an amount equivalent to the Annual Bonus
received by the Managing Director for the last completed fiscal year prior to
the termination date; and

 

(c)                      an amount equivalent
to twelve (12) months of the cost of the benefits which were in force at the
time of termination of the Managing Director’s employment, calculated on a
yearly basis, excluding the car allowance and operation costs. However, Stock
Options are expressly excluded from this provision and the Managing Director
shall be treated, in this regard, in accordance with the terms of the Stock
Option Plan of the Corporation.

 

The compensation under this Section 10.5
is independent of the potential payments under Section 10.3 of the Service
Contract and becomes due fully and in addition to these payments.

 

10.6                           Termination of
Employment Following a Change of Control

 

If the employment of the
Managing Director is terminated by the Company or 

Æterna Zentaris Inc. within twelve (12) months following a Change of Control,
without Cause by the Company, Æterna Zentaris Inc. or by the Managing Director
for Good Reason, the whole as defined in Annex 1, the Managing Director shall
receive the following:

 

(a)                      an amount equivalent
to twenty-four (24) months of his annual Base Salary; and

 

(b)                     an amount equivalent to twice the Annual Bonus,
if any, which the Managing Director would have been entitled to receive in the
year during which the Change of Control occurred; and

 

2

 

(c)                      an amount equivalent
to twenty-four (24) months of the cost of the benefits which were in force at
the time of termination of the Managing Director’s employment, calculated on a
yearly basis, including the car allowance, but excluding operation costs.
However, Stock Options are expressly excluded from this provision and the
Managing Director shall be treated, in this regard, in accordance with the
terms of the Stock Option Plan of the Corporation.

 

4.                                       Section 10.7
of the Service Contract shall be deleted.

 

5.                                       For the
avoidance of doubt, Sections 10.1, 10.2, 10.3 and 10.4 of the Service Contract
shall remain unchanged and in full force.

 

6.                                       All other provisions of the Service Contract
remain unchanged and in full force.

 

IN WITNESS WHEREOF the parties hereto have caused this amendment
to be executed on December 9st, 2008.

 

	
  ÆTERNA ZENTARIS GmbH

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ÆTERNA ZENTARIS INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Matthias Seeber

  	
   

  

 

3

 

ANNEX 1

 

CHANGE OF CONTROL PROGRAM (the “Program”)

 

1.                                      Applicability
of the Program

 

The
Executive shall be entitled to the benefit of the Program if both conditions
mentioned below occur:

 

(A)                             there is
a “Change of
Control” of the Corporation, as defined below; and

 

(B)                               The Executive’s employment is terminated,
within twelve (12) months following a Change of Control :

 

(i)                         involuntarily, at the request
of the Corporation or its successors, except “for Cause” or

 

(ii)                      by him, for “Good Reason”.

 

2.                                      Definitions

 

(A)                              For purposes of the Program and unless otherwise defined, the
capitalized terms used herein shall have the following meaning:

 

(i)                         “Person”
includes any individual, firm, partnership, association, trust, trustee,
executor, administrator, legal personal representative, government,
governmental body or authority, corporation, or other incorporated or
unincorporated organization, syndicate or other entity;

 

(ii)                      Subject to the exceptions set out
in Schedule A hereto, a Person shall be deemed the “Beneficial Owner” of or to “Beneficially Own”  (a) any securities of which such Person or any of such
Person’s affiliates or associates, as such terms are defined in National Instrument 45-106 — Prospectus and Registration Exemptions,
is owner at law or in equity; (b) any securities which the Person or any
of such Person’s affiliates or associates has the right to acquire within 60
days (whether such right is exercisable immediately or after the passage of not
more than 60 days thereafter or upon the occurrence of a contingency or the
making of a payment) pursuant to any securities convertible into Voting Shares,
agreement, arrangement, pledge or understanding, whether or not in writing
(other than customary agreements with and between underwriters and/or banking
group and/or selling group members with respect to a distribution of securities
or pledges of securities in the ordinary course of the pledgee’s business); and
(c) any securities that are Beneficially Owned within the meaning of
clauses (i) or (ii) of this Subsection 2(A)(ii) by any other
Person with which such Person is acting jointly or in concert;

 

(iii)                   “Voting
Shares” means the common shares and any other securities the holders
of which are entitled to vote generally on the election of directors of the
Corporation.

 

(B)                                For purposes of the Program, involuntary termination of employment “for Cause”
includes the following:

 

(i)                         if the Executive commits any
fraud, theft, embezzlement or other criminal act of a similar nature; or

 

(ii)                      if the Executive is guilty of
serious misconduct or willful negligence in the performance of his duties.

 

4

 

(C)                               For purposes of the Program, “Good Reason”
means the occurrence, without the Executive’s express written consent, of any
of the following acts:

 

(i)                         a material reduction of the
Executive’s total compensation (including annual Base Salary plus Annual Bonus,
benefits and number of stock options) as in effect on the date of this
Agreement or as same may be increased from time to time ;

 

(ii)                      a material reduction or change in
the Executive’s duties, authority, responsibilities, accountability or a change
in the business or corporate structure of the Corporation which materially
affects his authority, compensation or ability to perform duties or
responsibilities (such as shifting from a policy making position to a policy
implementation position);

 

(iii)                   a forced relocation; or

 

(iv)                  a material change in the terms and
conditions of this Program.

 

(D)                              For purposes of the Program, a “Change of Control” shall be deemed to have
occurred in any of the following circumstances:

 

(i)                         subject to the exceptions set
out in Schedule B hereto, upon the purchase or acquisition, in one or
more transactions, by a Person or one or more Persons who are affiliates of one
another or who are acting jointly or in concert (as such expressions are
defined in the Securities Act (Ontario)) (the “Acquiring Person”) of a beneficial interest
in securities of the Corporation representing in any circumstance fifty percent
(50%) or more of the voting rights attaching to the then outstanding securities
of the Corporation; or

 

(ii)                      upon a sale or other disposition
of all or substantially all of the Corporation’s assets; or

 

(iii)                   upon a plan of liquidation or
dissolution of the Corporation; or

 

(iv)                  if, for any reason, including an
amalgamation, merger or consolidation of the Corporation with or into another
company, the individuals who at the date hereof constitute the Board of
Directors of the Corporation (and any new directors whose appointment by the
Board of Directors of the Corporation or whose nomination for election by the
Corporation’s shareholders was approved by a vote of at least two-thirds (2/3)
of the directors then still in office who either were directors at the date
hereof or whose appointment or nomination for election was previously so
approved) cease to constitute a majority of the members of the Board of
Directors of the Corporation.

 

3.                                      Payment

 

In
the event that the two (2) conditions mentioned in Section 1 above
are met, the Executive shall receive, in a lump sum, at the latest within ten (10) days
of the effective date of the termination of employment, the payment of the
amounts mentioned in Section 6 of the Agreement.

 

Should
the Executive die before he has received the full payments, his estate shall
receive, immediately following his death, a cash amount equal to the unpaid
balance, less required statutory deductions.

 

It
is understood that the Executive will not be required to mitigate the amount of
any payment hereunder by seeking other employment or otherwise.

 

5

 

4.                                      Release

 

The
Executive acknowledges that the full and complete execution of all obligations
undertaken by the Corporation and its successors under the Program, to the
extent the Program becomes applicable pursuant to Section 1 of the
Program, constitutes adequate notice of termination and in consideration and
subject to the full and complete execution of all such obligations, the
Executive agrees to grant the Corporation, its affiliated and related companies
and their respective directors, officers, shareholders, representatives,
employees, successors and assigns, a full and final release and discharge for
all claims, past, present or future, that he has or may have, arising directly
or indirectly from his employment and the termination thereof, whether for
prior notice of termination, severance pay, damages in lieu thereof or for any
other reason.

 

5.                                      General

 

The
Executive’s participation in the Program shall end immediately upon the
termination of his employment with the Corporation or one of its affiliates for
any reason whatsoever. The Program is for an indefinite term commencing on the
date of this Agreement. Furthermore, the Corporation shall have the right prior
to the occurrence of a Change of Control, in its sole discretion, to terminate
the Executive’s participation in the Program at the end of each twelve
(12)-month period commencing on the date of this Agreement by sending him a
written notice of termination at least thirty (30) days prior to the first
anniversary date of this Agreement and of each anniversary date thereafter. For
example, the Corporation would be entitled to exercise its discretion to
terminate the Executive’s participation in the Program if, as of the date of
the notice of termination, there has been during said twelve (12)-month period
a material reduction in the responsibilities of the Executive.

 

6.                                      Successors

 

The
terms and conditions hereof shall bind the Corporation, its successors and
assignees.

 

6

 

Schedule A

 

Exceptions to the definition of “Beneficial
Owner” and “Beneficially Own” (Section 2 (A)(ii) of the Program)

 

A
Person shall not be deemed the “Beneficial Owner”
of or to “Beneficially Own” any
security:

 

(A)                              as a result of such security having been
deposited or tendered pursuant to a take-over bid (as such term is defined in
the Securities Act (Ontario)) made by such Person or
any of such Person’s affiliates or associates or any other Person acting
jointly or in concert with such Person until such deposited or tendered
security is taken up and paid for;

 

(B)                                as a result of entering into an agreement, including a lock-up
agreement, pursuant to which it has been agreed that such security will be
deposited or tendered until such deposited or tendered security is taken up and
paid for;

 

(C)                              as a result of (a) such Person or any of the affiliates or
associates of such Person holding such security provided that the ordinary
business of any such Person (the “Fund  Manager”) includes the management of investment funds for
others and such security is held by the Fund Manager in the ordinary course of
such business in the performance of such Fund Manager’s duties for the account
of any other Person (a “Client”); (b) such
Person (the “Trust  Company”)
being licensed to carry on the business of a trust company under applicable
laws and, as such, acting as trustee or administrator or in a similar capacity
in relation to the estates of deceased or incompetent Persons (each an “Estate  Account”) or in
relation to other accounts (each an “Other  Account”) and holding such security in the ordinary course
of such duties for such Estate Accounts or for such Other Accounts;  (c) such Person (the “Plan  Administrator”)
being the administrator or the trustee of one or more pension funds or plans (a “Plan”) registered under the laws of Canada or any province
thereof or the laws of the United States of America or any state thereof and
such security being held by the Plan Administrator or the Plan in the ordinary
course of such Plan Administrator’s or Plan’s activities; (d) such Person
(the “Crown  Agent”)
being established by statute for purposes that include, and the ordinary
business or activity of such Person includes, the management of investment
funds for employee benefit plans, pension plans or insurance plans of various
public bodies and such security is held by the Crown Agent in the ordinary
course of the management of such investment funds; or (e) such Person
being a Plan and such security being held by the Plan in the ordinary course of
such Plan’s activities; provided, however, that in any of the foregoing cases
the Fund Manager, the Trust Company, the Plan Administrator, the Crown Agent or
the Plan, as the case may be, is not then making or has not then announced a
current intention to make a take-over bid (as such term is defined in the Securities Act (Ontario)), alone or by acting jointly or in
concert with any other Person, other than an offer to acquire the Voting Shares
pursuant to a distribution by the Corporation or by means of market
transactions made in the ordinary course of business of such Person (including
pre-arranged trades entered into in the ordinary course of business of such
Person) executed through the facilities of a stock exchange or organized
over-the-counter-market;

 

(D)                             because such Person is a Client of the same Fund Manager as another
Person on whose account the Fund Manager holds such security, or because such
Person is an Estate Account or an Other Account of the same Trust Company as
another Person on whose account the Trust Company holds such security, or
because such Person is a Plan with the same Plan Administrator as another Plan
on whose account the Plan Administrator holds such security;

 

(E)                               because such Person is a Client of a Fund Manager and such security is
owned at law or in equity by the Fund Manager, or because such Person is an
Estate Account or an Other Account of a Trust Company and such security is
owned at law or in equity by the Trust Company, or because such Person is a
Plan and such security is owned at law or in equity by the Plan Administrator;
or

 

7

 

(F)                               because such Person is the registered holder of securities as a result
of carrying on the business of, or acting as, a nominee of a securities
depositary.

 

8

 

Schedule B

 

Exceptions to the definition of “Acquiring
Person” (Section 2 (D)(i) of the Program)

 

“ACQUIRING PERSON” SHALL
MEAN ANY PERSON WHO IS AT ANY TIME AFTER THE DATE HEREOF THE BENEFICIAL OWNER
OF FIFTY PERCENT (50%) OR MORE OF THE
OUTSTANDING VOTING SHARES OF THE CORPORATION; PROVIDED, HOWEVER, THAT THE TERM
“ACQUIRING PERSON” SHALL NOT INCLUDE:

 

(i)                                     the Corporation or any corporation controlled
by the Corporation;

 

(ii)                                  any Person who
becomes the beneficial owner of fifty percent (50%)
or more of the outstanding Voting Shares as a result of one or any combination
of: (a) a Voting Share Reduction; (b) an Exempt Acquisition; or (c) a
Pro Rata Acquisition; provided, however, that if a Person shall become the
Beneficial Owner of fifty percent (50%)
or more of the outstanding Voting Shares by reason of one or any combination of
a Voting Share Reduction, an Exempt Acquisition or a Pro Rata Acquisition, and
thereafter becomes the Beneficial Owner of an additional one percent of any
Voting Shares then outstanding (otherwise than pursuant to an additional Voting
Share Reduction, Exempt Acquisition or Pro Rata Acquisition), then, as of the
date that such Person becomes a Beneficial Owner of such additional Voting
Shares, such Person shall become an “Acquiring Person”;
or

 

(iii)                               an underwriter or
member of a banking or selling group acting in such capacity that becomes the
Beneficial Owner of fifty percent (50%)
or more of the Voting Shares in connection with a distribution of securities
pursuant to an underwriting agreement with the Corporation;

 

For
purposes of the Program, the capitalized terms used herein shall have the
following meaning:

 

(a)                                “Voting Share Reduction”
means an acquisition or redemption by the Corporation or any corporation
controlled by the Corporation of Voting Shares which, by reducing the number of
Voting Shares outstanding, increases the percentage of Voting Shares
Beneficially Owned by any Person to fifty percent (50%) or more of the Voting
Shares then outstanding;

 

(b)                               “Exempt Acquisition” means an
acquisition whereby a Person became an Acquiring Person by inadvertence and
without any intention to become, or knowledge that it would become, an
Acquiring Person under this Program and, in the event that a waiver is granted
by the Board of Directors, such acquisition shall be deemed not to have occurred
for the purposes hereof. Any such waiver may only be given on the condition
that such Person, within 10 days after the foregoing determination by the Board
of Directors or such later date as the Board of Directors may determine (the “Disposition
Date”), has reduced its Beneficial Ownership of Voting Shares such that the
Person is no longer an Acquiring Person and such waiver shall only be effective
if the reduction has occurred within such 10-day period; [NTD: To
consider whether such an event can ever occur]

 

(c)                                “Pro Rata Acquisition”
means an acquisition by a Person of Voting Shares pursuant to (i) any
dividend reinvestment plan, such purchase plan or other plan of the Corporation
made available to all holders of Voting Shares (other than holders resident in
any jurisdiction where participation in such plan is restricted or impractical
as a result of applicable law); (ii) a stock dividend, a stock split or
other event pursuant to which such Person becomes the Beneficial Owner of
Voting Shares on the same pro rata basis as all other holders of Voting Shares
of the same class or series; (iii) the acquisition or exercise of rights
to purchase Voting Shares distributed to all holders of Voting Shares (other
than holders resident in any jurisdiction where such distribution or exercise
is restricted or impractical as a result of applicable law) by the Corporation
pursuant to a rights offering (but only if such rights are acquired directly
from the Corporation); or (iv) a distribution of Voting Shares or
convertible securities in respect thereof offered pursuant to a prospectus or
by way of a private placement by the Corporation or a conversion or exchange of
any such convertible security, provided that such Person does not thereby
acquire a greater percentage of Voting Shares or convertible securities so
offered than the Person’s percentage of Voting Shares Beneficially Owned immediately
prior to such acquisition.

 

9

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