Document:

Exhibit 10.1

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”), is made on December 20, 2019 among ASHFORD INC., a corporation organized under the laws of the State of Nevada and having its principal place of business at Dallas, Texas, ASHFORD HOSPITALITY SERVICES, LLC, a limited liability company organized under the laws of the State of Delaware and having its principal place of business at Dallas, Texas (hereinafter, the “Company”) and JEREMY WELTER, an individual residing in Dallas, Texas (the “Executive”).

 

RECITALS:

 

WHEREAS, Ashford Hospitality Advisors, LLC, Ashford Inc. and the Executive are parties to a certain Amended and Restated Employment Agreement (the “Original Agreement”), dated September 13, 2017;

 

WHEREAS, the Company, Ashford Inc. and the Executive desire to amend and restate the Original Agreement upon the terms and conditions specified herein.

 

NOW, THEREFORE, the Company, Ashford Inc. and the Executive, in consideration of the respective covenants set out below, hereby agree as follows:

 

1.                                      EMPLOYMENT.

 

(a)                                 POSITIONS.  During the Term (defined below), the Executive shall be employed by the Company to serve as Co-President and Chief Operating Officer of the Company and Ashford Inc., as well as Chief Operating Officer of Ashford Hospitality Trust, Inc. (“Ashford Trust”) and Braemar Hotels & Resorts Inc. (“Braemar”).  In addition to the foregoing, the Executive shall serve the subsidiaries and affiliates of the Company, Ashford Inc., Ashford Trust, Braemar and any other entities advised by the Company in these or other offices and capacities, including as a consultant to such entities, in each case upon the reasonable request of the Company.  If the Executive’s service in one or more of such additional capacities is terminated, the Executive’s compensation provided herein shall not be reduced for so long as the Executive otherwise remains employed by the Company under the terms of this Agreement.

 

(b)                                 RESPONSIBILITIES.  The Executive’s principal employment duties and responsibilities shall be those duties and responsibilities customary for the positions of Co-President and Chief Operating Officer and such other executive duties and responsibilities as the Chief Executive Officer of the Company (the “AINC CEO”) or the Board of Directors of Ashford Inc. (the “AINC Board”) shall from time to time reasonably assign to the Executive.  With respect to Ashford Trust and Braemar, the Executive shall be required to follow all directives of the AINC CEO relating to the performance of the Company’s responsibilities pursuant to the applicable advisory agreements with each of Ashford Trust and Braemar, as may be amended, unless doing so would conflict with his fiduciary duties to Ashford Trust or Braemar, as applicable. The Executive shall report directly to the AINC CEO or such person(s) as the AINC CEO may designate from time to time.

 

 

(c)                                  EXTENT OF SERVICES. Except for illnesses and vacation periods, the Executive shall devote substantially all of his working time and attention and his best efforts to the performance of his duties and responsibilities under this Agreement and shall not be otherwise employed. However, the Executive may (i) make any passive investments where he is not obligated or required to, and shall not in fact, devote material managerial efforts, (ii) participate in charitable, academic or community activities or in trade or professional organizations, (iii) hold directorships in charitable or non-profit organizations, or (iv) subject to AINC CEO and AINC Board approval (which approval shall not be unreasonably withheld or withdrawn), hold directorships in for profit companies, except only that the AINC CEO or the AINC Board shall have the right to limit such services as a director or such participation whenever the AINC CEO or the AINC Board shall reasonably believe that the time spent on such activities infringes in any material respect upon the time required by the Executive for the performance of his duties under this Agreement or is otherwise incompatible with those duties.

 

2.                                      TERM. Upon the full execution and delivery hereof, this Agreement shall become effective and shall continue for a Term ending on December 31, 2020 (the “Initial Termination Date”) unless it is sooner terminated pursuant to Section 6; provided, however, that this Agreement shall be automatically extended for one additional year on the Initial Termination Date and on each subsequent anniversary of the Initial Termination Date, unless either the Company or the Executive elect not to extend the Term of this Agreement by notifying the other party in writing of such election not less than one hundred twenty (120) days prior to the expiration of the then current Term. For purposes of this Agreement, “Term” shall mean the actual duration of the Executive’s employment hereunder, taking into account any extension pursuant to this Section 2 or early termination of employment pursuant to Section 6.

 

3.                                      SALARY. The Company shall pay the Executive a Base Salary which shall be payable in periodic installments, less statutory deductions and withholdings, according to the Company’s normal payroll practices. Effective as of (and retroactive to) August 1, 2019, the Executive’s base salary shall be SEVEN HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($725,000) per year. The AINC Board or a compensation committee duly appointed by the AINC Board (the “Compensation Committee”) shall thereafter review the Executive’s Base Salary annually to determine within its sole discretion whether and to what extent the Executive’s salary may be increased, but in no event shall it be decreased (for the purposes of this Agreement, the term “Base Salary” shall mean the amount established and adjusted from time to time pursuant to this Section 3).

 

4.                                      ANNUAL INCENTIVE AWARDS.

 

(a)                                 INCENTIVE BONUS. The Executive shall be entitled to receive an annual cash incentive bonus (the “Incentive Bonus”) for each calendar year during the Term of this Agreement based on the level of accomplishment of management and performance objectives as established by the AINC CEO, the AINC Board or the Compensation Committee. Except as otherwise provided in Section 7, if the Executive is not employed for the full calendar year, the Executive shall be paid a pro-rated Incentive Bonus in an amount equal to the product of (x) the amount of the Incentive Bonus for the calendar year to which the Executive would have been entitled if the Executive had remained employed for the entire calendar year and (y) a fraction, the numerator of which is the number of days in the applicable calendar year for which the Executive was employed

 

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through the last day of his employment and the denominator of which is the three hundred sixty-five (365) days of the calendar year. The targeted Incentive Bonus for the period commencing August 1, 2019, is 75% to 175% of Base Salary (as determined by the Compensation Committee), and in no event shall such targeted Incentive Bonus be decreased. The Incentive Bonus shall be paid as soon as reasonably practical following each calendar year but not later than June 1st of the following year.

 

(b)                                 INCENTIVE, SAVINGS AND RETIREMENT PLANS. During the Term, the Executive shall be entitled to participate in all other short- and long-term incentive plans, stock and option plans, long term incentive partnership (“LTIP”) plans, practices, policies and other programs, and all savings and retirement plans, practices, policies and programs, in each case that are applicable generally to senior executives of the Company or Ashford Inc., as may be adopted, or amended from time to time, by the Compensation Committee, including, without limitation, equity incentive programs of other companies advised by Ashford Inc.

 

5.                                      BENEFITS.

 

(a)                                 VACATION. The Executive will be entitled to paid vacation in conformance with the Company’s vacation policy for senior executives but in no event less than four (4) weeks of paid vacation per calendar year. Vacation time not used within the calendar year will not carry forward. The Executive shall not be entitled to cash in lieu of any unused vacation time except as provided herein.

 

(b)                                 SICK LEAVE. The Executive shall be entitled to paid sick leave in accordance with the sick leave policies of the Company in effect for other senior executive officers.

 

(c)                                  EMPLOYEE BENEFITS. The Executive and his spouse and eligible dependents, if any, and their respective designated beneficiaries where applicable, will be eligible for and entitled to participate in other benefits maintained by the Company or Ashford Inc. for its senior executive officers, as such benefits may be modified from time to time and for all such employees, such as, without limitation, any medical, dental, vision, pension, 401(k), deferred compensation, accident, disability, and life insurance benefits, on a basis not less favorable than that applicable to other senior executives of the Company or Ashford Inc. The Executive will also be entitled to appropriate office space, administrative support, secretarial assistance, and such other facilities and services as are suitable to the Executive’s positions and as required for the performance of the Executive’s duties.

 

(d)                                 EXPENSES. The Executive will be entitled to reimbursement of all reasonable expenses, in accordance with the Company’s policy as in effect from time to time and on a basis not less favorable than that applicable to other senior executives of the Company or Ashford Inc., including, without limitation, telephone (including in-home, office and cellular telephone, DSL and/or wi-fi costs), travel and entertainment expenses incurred by the Executive in connection with the business of the Company, promptly upon the presentation by the Executive of supporting receipts or documentation.

 

(e)                                  D&O INSURANCE COVERAGE. During and for a period three (3) years after the Term, the Executive shall be entitled to director and officer insurance coverage for his acts and

 

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omissions while an officer of the Company, Ashford Inc., Ashford Trust, Braemar and other entities advised by Ashford Inc. on a basis no less favorable to him than the coverage provided current officers or directors.

 

6.                                      TERMINATION.  The employment of the Executive by the Company and this Agreement (except as otherwise provided herein) shall terminate upon the occurrence of any of the following:

 

(a)                                 DEATH OR DISABILITY. Immediately upon death or Disability of the Executive. As used in this Agreement, “Disability” shall mean an inability to perform the essential functions of his duties, with or without reasonable accommodation, for a period of 90 consecutive days or a total of one hundred eighty (180) days, during any three hundred sixty-five (365)-day period, in either case as a result of incapacity due to mental or physical illness which is determined to be total and permanent. A determination of Disability shall be made by a physician satisfactory to both the Executive (or his guardian) and the Company, provided that if the Executive and the Company do not agree on a physician, the Executive (or his guardian) and the Company shall each select a physician and these two together shall select a third physician, whose determination as to Disability shall be binding on all parties. The appointment of one or more individuals to carry out the offices or duties of the Executive during a period of the Executive’s inability to perform such duties and pending a determination of Disability shall not be considered a breach of this Agreement by the Company.

 

(b)                                 FOR CAUSE. At the election of the Company, for Cause, immediately upon written notice by the Company to the Executive unless the Executive fully corrects the circumstances constituting Cause within the cure periods provided below, if applicable. For purposes of this Agreement, “Cause” for termination shall be deemed to exist solely in the event of the following:

 

(i)     The conviction of the Executive of, or the entry of a plea of guilty or nolo contendere by the Executive to, a felony (exclusive of a conviction, plea of guilty or nolo contendere arising under a statutory provision imposing criminal liability upon the Executive on a PER SE basis due to any offices held by the Executive pursuant to the terms of this Agreement, so long as any act or omission of the Executive with respect to such matter was not taken or omitted in contravention of any applicable policy or directive of the AINC CEO or the AINC Board except as permitted in Section 1(b));

 

(ii)     willful breach of duty of loyalty which is materially detrimental to the Company, Ashford Inc. or any entity advised by the Company, except as permitted in Section 1(b), which is not cured to the reasonable satisfaction of the AINC CEO or the AINC Board within thirty (30) days following written warning to the Executive from the AINC CEO or the AINC Board describing the alleged circumstances, provided that if there is an inconsistency in directives given by the AINC Board as compared to a directive from the AINC CEO, the AINC Board directives shall control;

 

(iii)     willful failure to perform or adhere to explicitly stated duties or guidelines of employment or to follow the lawful directives of the AINC CEO or

 

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the AINC Board, except as permitted in Section 1(b), which continues for thirty (30) days after written warning to the Executive that it will be deemed a basis for a “For Cause” termination, provided that if there is an inconsistency in directives given by the AINC Board as compared to a directive from the AINC CEO, the AINC Board directives shall control;

 

(iv)     gross negligence or willful misconduct in the performance of the Executive’s duties (which is not cured by the Executive within thirty (30) days after written warning from the AINC CEO);

 

(v)      the Executive’s willful commission of an act of dishonesty resulting in material economic or financial injury to the Company, Ashford Inc. or any entity advised by the Company or willful commission of fraud; or

 

(vi)     the Executive’s chronic absence from work for reasons other than illness which is not cured to the reasonable satisfaction of the AINC CEO within thirty (30) days following written warning to the Executive from the AINC CEO describing the alleged circumstances.

 

For purposes of this Section, no act, or failure to act, on the Executive’s part will be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without a reasonable belief that the Executive’s act, or failure to act, was in the best interest of the Company, Ashford Inc. or the entities advised by the Company, as applicable.  Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the AINC Board, a directive of the AINC CEO, or based upon the advice of outside counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company, Ashford Inc. or the entities advised by the Company, as applicable.

 

(c)                                  WITHOUT CAUSE OR GOOD REASON. At the election of the Company, without Cause, and at the election of the Executive, without Good Reason, in either case upon sixty (60) days’ prior written notice to the Executive or to the Company, as the case may be; provided, however, that if the Executive gives notice, without Good Reason, the Company may waive all or a portion of the sixty (60) days’ written notice and accelerate the effective date of the termination.

 

(d)                                 FOR GOOD REASON.  At the election of the Executive, for Good Reason, which is not cured by the Company within thirty (30) days after written notice from the Executive to the Company setting forth a description of the circumstances constituting Good Reason. For purposes of this Agreement, “Good Reason” shall mean any of the following actions, omissions or events occurring without the Executive’s prior written consent:

 

(i)                                     the assignment to the Executive of any title, duties, responsibilities, directives or reporting requirements inconsistent with Section 1(b) or with his position as Co-President and Chief Operating Officer of the Company or Ashford Inc., or any material diminishment, on a cumulative basis, of the Executive’s overall duties, responsibilities, or status, including failure of Ashford Inc. or the Company to

 

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recommend to the board of directors of each of Ashford Trust and Braemar that the Executive serve as the Chief Operating Officer of such entities;

 

(ii)                                  a reduction by the Company in the Executive’s annual Base Salary or targeted Incentive Bonus;

 

(iii)                               the requirement by the Company that the principal place of business at which the Executive performs his duties be changed to a location outside the greater Dallas metropolitan area; or

 

(iv)                              any material breach by the Company of any provision of this Agreement.

 

(e)                                  NOTICE OF TERMINATION. Any termination by the Company for Cause, or by the Executive for Good Reason, shall be communicated by Notice of Termination to the other parties hereto given in accordance with Section 16(a) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (iii) if the Date of Termination (as defined below) is other than the date of receipt of such notice, specifies the termination date (provided that the date specified shall not be more than thirty (30) days after the giving of the notice). The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive or the Company, respectively, hereunder or preclude the Executive or the Company, respectively, from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

 

(f)                                   DATE OF TERMINATION. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified in the notice (provided that the date specified shall not be more than thirty (30) days after the giving of the notice), as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the Date of Termination shall be the date on which the Company notifies the Executive of such termination or such later date specified in such notice, (iii) if the Executive’s employment is terminated by the Executive without Good Reason, the Date of Termination shall be the date on which the Executive notifies the Company of such termination or such later date specified in such notice, unless otherwise agreed by the Company and the Executive, and (iv) if the Executive’s employment is terminated by reason of death or Disability or non-renewal of this Agreement, the Date of Termination shall be the date of death or Disability of the Executive or the Agreement’s non-renewal date, as the case may be.

 

7.                                      EFFECTS OF TERMINATION.

 

(a)                                 TERMINATION BY THE COMPANY WITHOUT CAUSE; OR NON-RENEWAL BY THE COMPANY. If the employment of the Executive should terminate by reason

 

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of (i) termination by the Company for any reason (other than Cause) or (ii) the Company’s failure to renew this Agreement, then all compensation and benefits for the Executive shall be as follows:

 

(i)     The Executive shall be paid, in a single lump sum payment within thirty (30) days after the Date of Termination, the aggregate amount of (A) the Executive’s earned but unpaid Base Salary and accrued but unpaid vacation through the Date of Termination, and any Incentive Bonus required to be paid to the Executive pursuant to Section 4(a) above for the prior calendar year to the extent not previously paid, and reimbursement of all expenses through the Date of Termination as required pursuant to Section 5(d) hereof (the “Accrued Obligations”), and (B) three (3) (the “Severance Multiple”) times the sum of (x) the Base Salary in effect on the Termination Date plus (y) the average Incentive Bonus received by the Executive for the three complete calendar years or such lesser number of calendar years as the Executive has been employed by the Company) immediately prior to the Termination Date (the “Severance Payment”).

 

(ii)     At the time when incentive bonuses are paid to the Company’s other senior executives for the calendar year of the Company in which the Date of Termination occurs, the Executive shall be paid a pro-rated Incentive Bonus in an amount equal to the product of (x) the amount of the Incentive Bonus to which the Executive would have been entitled if the Executive’s employment had not been terminated, and (y) a fraction, the numerator of which is the number of days in the applicable calendar year for which the Executive was employed through the Date of Termination and the denominator of which is the three hundred sixty-five (365) days of the calendar year (a “Pro-Rated Bonus”).

 

(iii)     The Company will allow the Executive and his dependents, at the Company’s cost, to continue to participate for a period of thirty-six (36) months following the Date of Termination in the Company’s medical, dental and vision plan in effect as of the Date of Termination. The Company’s payment of this medical coverage will be made monthly during this period of coverage. To the extent such medical benefits are taxable to the Executive, such benefits will not affect benefits to be provided in any other taxable year, and such amounts are intended to meet the requirements of Treasury Regulation Section 1.409A-3(i)(1)(iv)(A) as “in-kind benefits”. In addition, the Company will reimburse the Executive for a period of thirty-six (36) months following the Date of Termination for the cost of coverage for life insurance and long-term disability insurance, based upon the level of such benefits that were provided to the Executive under the Company’s life insurance and long-term disability plans in effect as of the Date of Termination, which reimbursements will be paid within seven (7) days after the Executive pays any applicable premium. (The amount of any such reimbursements may not affect the expenses eligible for reimbursement in any other year. Such reimbursements are intended to meet the requirements of Treasury Regulation Section 1.409A-3(i)(1)(iv)(A).) (Collectively, these welfare benefits under (iii) are referred to as the “Other Benefits”). If the Executive engages in regular employment after his termination of employment with any organization, any employee welfare benefits received by the Executive in consideration of such employment which are similar in nature to the Other Benefits

 

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provided by the Company will relieve the Company of its obligation under this Section 7(a)(iii) to provide comparable benefits to the extent of the benefits so received, and such benefit hereunder shall be forfeited.

 

(iv)     Any annual performance shares, restricted shares, LTIP units or options awarded under Section 4(b) hereof shall immediately vest. Without limiting the foregoing, it is agreed that if the Executive’s employment is terminated pursuant to this Section 7(a), all outstanding stock options, restricted stock, LTIP units, and other equity awards granted to the Executive under any of the Company’s equity incentive plans (or awards substituted therefore covering the securities of a successor company) shall become immediately vested and exercisable in full.  Likewise, all outstanding stock options, restricted stock, LTIP units and other equity awards granted to the Executive under any of the equity incentive plans of any entity advised by Ashford Inc. shall become immediately vested and exercisable in full to the extent provided in such plans and consistent with the vesting terms of such awards.  Further, the Company agrees that upon a termination by the Company without cause or a non-renewal by the Company, to the extent any LTIP units held by Executive have yet to reach the economic equivalent of common units, the LTIP units shall be fully vested (as provided above) but shall continue to be subject to the earn-up provisions of the organizational documents of the issuer, and the Company shall take all reasonable efforts to cause such LTIP units to fully earn-up in accordance with such provisions.

 

(b)                                 TERMINATION BY THE EXECUTIVE WITH GOOD REASON. In the event that the Executive’s employment is terminated by the Executive with Good Reason, the Company will pay the Executive the same Accrued Obligations, Severance Payment, Pro-Rated Bonus, Other Benefits and accelerated vesting, all as provided in Sections 7(a)(i) (ii), (iii) and (iv) above at the times as provided in such sections.  Without limiting the foregoing, it is agreed that if the Executive’s employment is terminated pursuant to this Section 7(b), all outstanding stock options, restricted stock, LTIP units and other equity awards granted to the Executive under any of the Company’s equity incentive plans (or awards substituted therefore covering the securities of a successor company) shall become immediately vested and exercisable in full.  Likewise, all outstanding stock options, restricted stock, LTIP units and other equity awards granted to the Executive under any of the equity incentive plans of any entity advised by Ashford Inc. shall become immediately vested and exercisable in full to the extent provided in such plans and consistent with the vesting terms of such awards.  Further, the Company agrees that upon a termination by the Executive with Good Reason, to the extent any LTIP units held by Executive have yet to reach the economic equivalent of common units, the LTIP units shall be fully vested (as provided above) but shall continue to be subject to the earn-up provisions of the organizational documents of the issuer, and the Company shall take all reasonable efforts to cause such LTIP units to fully earn-up in accordance with such provisions.

 

(c)                                  TERMINATION BY EXECUTIVE WITHOUT GOOD REASON. If the Executive’s employment is terminated by the Executive without Good Reason including a resignation by the Executive without Good Reason and including an election not to renew this Agreement by the Executive, the Company will pay the Executive the Accrued Obligations as provided in Section 7(a)(i) above but the Executive shall not be entitled to the Severance Payment,

 

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Pro-rated Bonus and accelerated vesting set forth in Sections 7(a)(i), (ii) and (iv) hereof; provided, however, the Company shall allow the Executive and his dependents, at the Company’s cost, during the Non-Compete Period (hereinafter defined), to continue to participate in the Company’s Other Benefits in effect as of the Date of Termination as provided and paid in the manner set forth in Section 7(a)(iii), but only through the expiration of the Non-Compete Period. If the Executive engages in regular employment after his Date of Termination with any organization, any employee welfare benefits received by the Executive in consideration of such employment which are similar in nature to the Other Benefits provided by the Company will relieve the Company of its obligation under this Section 7(c) to provide comparable benefits to the extent of the benefits so received, and such benefit hereunder shall be forfeited.  In addition, subject to the Executive honoring the non-compete covenant in Section 10(a) hereof, the Company shall pay the Executive a non-compete payment (the “Non-Compete Payment”) equal to the Severance Payment determined with a Severance Multiple equal to one (1).  Subject to the Executive honoring the non-compete covenant in Section 10(a) hereof, the Non-Compete Payment shall be paid monthly over the one-year Non-Compete Period following the Date of Termination in equal monthly installments of one-twelfth (1/12th) of the Non-Compete Payment.

 

(d)                                 TERMINATION BY THE COMPANY FOR CAUSE. If the Executive’s employment is terminated by the Company for Cause, the Company will pay the Executive the Accrued Obligations as provided in Section 7(a)(i) above but the Executive shall not be entitled to the Severance Payment, Pro-Rated Bonus, the Other Benefits and accelerated vesting set forth in Sections 7(a)(i), (ii), (iii) and (iv) hereof.

 

(e)                                  TERMINATION FOR DEATH OR DISABILITY. If the employment of the Executive should terminate by reason of death or Disability of the Executive, then, the Company will pay the Executive the same Accrued Obligations, Severance Payment, Pro-Rated Bonus, Other Benefits and accelerated vesting, all as provided in Sections 7(a)(i) (ii), (iii) and (iv) above at the times as provided in such sections; provided, however, the Severance Multiple for calculation of the Severance Payment shall be one (1). Without limiting the foregoing, it is agreed that if the Executive’s employment is terminated pursuant to this Section 7(e), all outstanding stock options, restricted stock, LTIP units and other equity awards granted to the Executive under any of the Company’s equity incentive plans (or awards substituted therefore covering the securities of a successor company) shall become immediately vested and exercisable in full.  Likewise, all outstanding stock options, restricted stock, LTIP units and other equity awards granted to the Executive under any of the equity incentive plans of any entity advised by Ashford Inc. shall become immediately vested and exercisable in full to the extent provided in such plans and consistent with the vesting terms of such awards.  Further, the Company agrees that upon a termination by reason of death or disability of the Executive, to the extent any LTIP units held by Executive have yet to reach the economic equivalent of common units, the LTIP units shall be fully vested (as provided above) but shall continue to be subject to the earn-up provisions of the organizational documents of the issuer, and the Company shall take all reasonable efforts to cause such LTIP units to fully earn-up in accordance with such provisions.

 

(f)                                   TERMINATION OF AUTHORITY. Immediately upon the Date of Termination or upon the expiration of this Agreement, notwithstanding anything else to the contrary contained herein or otherwise, the Executive will stop serving the functions of his terminated or expired positions, and shall be without any of the authority or responsibility for such positions.  On request

 

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of the AINC Board at any time following the termination of the Executive’s employment by the Company for Cause or by the Executive without Good Reason (including Executive’s termination of his employment after a Change in Control (as defined herein) or an election by the Executive not to renew this Agreement), the Executive agrees to resign immediately from the AINC Board, if then a member, and from the board of any other entity advised by the Company.

 

(g)                                  RELEASE OF CLAIMS. As a condition of Executive’s entitlement to the Severance Payment, Pro-Rated Bonus, Non-Compete Payment and Other Benefits provided by this Agreement, the Executive shall be required to execute the terms of a waiver and release of claims against the Company substantially in the form attached hereto as Exhibit “A” (as may be modified consistent with the purposes of such waiver and release to reflect changes in law following the date hereof) (the “Release”) within the applicable time period provided in the Release (the “Applicable Release Period”); and shall forfeit all payments hereunder if it is not so timely executed; provided, however, that in any case where the first and last days of the Applicable Release Period are in two separate taxable years, any payments required to be made to Executive that are treated as deferred compensation for purposes of Code Section 409A shall be made in the later taxable year, promptly following the conclusion of the Applicable Release Period.

 

(h)                                 CODE SECTION 409A AND TERMINATION PAYMENTS.  All payments provided under this Agreement shall be subject to this Section 7(h). Notwithstanding anything herein to the contrary, to the extent that the AINC Board reasonably determines, in its sole discretion, that any payment or benefit to be provided under this Agreement to or for the benefit of Executive would be subject to the additional tax imposed under Section 409A(a)(1)(B) of the Code or a successor or comparable provision, the commencement of such payments and/or benefits shall be delayed until the earlier of (i) the date that is six (6) months following the Date of Termination or (ii) the date of Executive’s death (such date is referred to herein as the “Distribution Date”), provided, if at such time Executive is a “specified employee” of the Company (as defined in Treasury Regulation Section 1.409A-1(i)) and if amounts payable under this Agreement are on account of an “involuntary separation from service” (as defined in Treasury Regulation Section 1.409A-1(m)), Executive shall receive payments during the six-month period immediately following the Date of Termination equal to the lesser of (x) the amount payable under this Agreement, as the case may be, or (y) two (2) times the compensation limit in effect under Code Section 401(a)(17) for the calendar year in which the Termination Date occurs (with any amounts that otherwise would have been payable under this Agreement during such six (6)-month period being paid on the first regular payroll date following the six (6)-month anniversary of the Date of Termination).  In the event that the AINC Board determines that the commencement of any of the employee benefits to be provided under this Agreement are to be delayed pursuant to the preceding sentence, the Company shall require Executive to bear the full cost of such employee benefits until the Distribution Date at which time the Company shall reimburse Executive for all such costs. Finally, for the purposes of this Agreement, amounts payable under this Agreement shall be deemed not to be a “deferral of compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation Sections 1.409A-1(b)(4) (“short-term deferrals”) and (b)(9) (“separation pay plans,” including the exception under subparagraph (iii)) and other applicable provisions of Treasury Regulation Section 1.409A-1 through A-6.

 

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8.                                      CHANGE OF CONTROL.

 

(a)                                 CHANGE OF CONTROL. For purposes of this Agreement, a “Change of Control” will be deemed to have taken place upon the occurrence of any of the following events:

 

(i)                                                       any “person” (as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as modified in Section 12(d) and 14(d) of the Exchange Act) other than (A) Ashford Inc. or any of its subsidiaries or any of its officers or directors, (B) any employee benefit plan of Ashford Inc. or the Company or any of their subsidiaries, (C) a company owned, directly or indirectly, by stockholders of Ashford Inc. in substantially the same proportions as their ownership of Ashford Inc., or (D) an underwriter temporarily holding securities pursuant to an offering of such securities, becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of Ashford Inc. representing thirty percent (30%) or more of the shares of voting stock of Ashford Inc. then outstanding;

 

(ii)                                                    the consummation of any merger, reorganization, business combination or consolidation of the Company, Ashford Inc. or one of the subsidiaries of the Company or Ashford Inc. with or into any other company, other than a merger, reorganization, business combination or consolidation which would result in the holders of the voting securities of the Company or Ashford Inc., as applicable, outstanding immediately prior thereto holding securities which represent immediately after such merger, reorganization, business combination or consolidation more than fifty percent (50%) of the combined voting power of the voting securities of Ashford Inc. or the surviving company or the parent of such surviving company;

 

(iii) the consummation of the sale or disposition by Ashford Inc. of all or substantially all of Ashford Inc.’s assets, other than a sale or disposition if the holders of the voting securities of Ashford Inc. outstanding immediately prior thereto hold securities immediately thereafter which represent more than fifty percent (50%) of the combined voting power of the voting securities of the acquiror, or parent of the acquiror, of such assets; or the stockholders of Ashford Inc. approve a plan of complete liquidation or dissolution of Ashford Inc.; or

 

(iv)                                                individuals who, as of the Effective Date, constitute the AINC Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the AINC Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election to the Board was approved or recommended to stockholders of Ashford Inc. by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an election contest with respect to the election or removal of directors or other solicitation of proxies or consents by or on behalf of a person other than the AINC Board.

 

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(b)                                 CERTAIN BENEFITS UPON A CHANGE OF CONTROL.

 

If a Change of Control occurs during the Term and the Executive’s employment is terminated by the Company without Cause (or not renewed by the Company) or by the Executive for any reason on or before the one (1) year anniversary of the effective date of the Change of Control, then the Executive shall be entitled to the Accrued Obligations, Pro-Rated Bonus, Other Benefits and accelerated vesting, all as provided in Sections 7(a)(i), (ii), (iii) and (iv) above at the times as provided in such sections. In addition, the Executive shall be entitled to a Severance Payment determined and paid in accordance with Section 7(a)(i) above; provided, however, the Severance Multiple will be three (3). Without limiting the foregoing, it is agreed that if the Executive’s employment is terminated pursuant to this Section 8(b) by the Company without Cause (or not renewed by the Company) or by the Executive for any reason, all outstanding stock options, restricted stock, LTIP units and other equity awards granted to the Executive under any of the Company’s equity incentive plans (or awards substituted therefore covering the securities of a successor company) shall become immediately vested and exercisable in full. Likewise, all outstanding stock options, restricted stock, LTIP units and other equity awards granted to the Executive under any of the equity incentive plans of any entity advised by Ashford Inc. shall become immediately vested and exercisable in full.  All payments under this Section 8(b) are subject to the restrictions set forth in Section 7(h) and may be delayed as set forth in Section 7(h) in order to satisfy the requirements of Section 409A of the Internal Revenue Code.

 

9.                                      CONFIDENTIAL INFORMATION. The Executive recognizes and acknowledges that the Executive has and will have access to confidential and proprietary information of the Company, Ashford Inc. and any entity advised by the Company, which, in each case, constitute valuable, special, and unique assets of such entity. The term “Confidential Information” as used in this Agreement shall mean all proprietary information which is known only to the Executive, the Company, Ashford Inc., any entity advised by the Company, other employees of the Company, or others in a confidential relationship with the Company, Ashford Inc. or any entity advised by Ashford Inc., and relating to the business of the Company, Ashford Inc. or such other entity, as applicable (including, without limitation, information regarding clients, customers, pricing policies, methods of operation, proprietary company programs, sales, acquisitions, products, profits, costs, conditions (financial or other), cash flows, key personnel, formulae, product applications, technical processes, and trade secrets, as such information may exist from time to time), which the Executive acquired or obtained by virtue of work performed for the Company, or which the Executive may acquire or may have acquired knowledge of during the performance of said work.

 

The Executive acknowledges that the Company has put in place certain policies and practices to keep such Confidential Information secret, including disclosing the information only on a need-to-know basis. The Executive further acknowledges that the Confidential Information has been developed or acquired by the Company through the expenditure of substantial time, effort, and money and provides the Company with an advantage over competitors who do not know such Confidential Information. Finally, the Executive acknowledges that such Confidential Information, if revealed to or used for the benefit of the Company’s competitors or in a manner contrary to the Company’s interests, would cause extensive and immeasurable harm to the Company and to the Company’s competitive position.

 

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The Executive shall not, during the Term or at any time thereafter, use for personal gain or detrimentally to the Company all or any part of the Confidential Information, or disclose or make available all or any part of the Confidential Information to any person, firm, corporation, association, or any other entity for any reason or purpose whatsoever, directly or indirectly, except as may be required pursuant to his employment hereunder, unless and until such Confidential Information becomes publicly available other than as a consequence of the breach by the Executive of his confidentiality obligations hereunder. Notwithstanding the foregoing, Executive shall not be restricted from disclosing or using Confidential Information that: (i) is or becomes generally available to the public other than as a result of an unauthorized disclosure by Executive or his agent; (ii) becomes available to Executive in a manner that is not in contravention of applicable law from a source (other than the Company, Ashford Inc. or an entity advised by the Company or the affiliated entities of such entities or one of its or their officers, employees, agents or representatives) that is not known by Executive, after reasonable investigation, to be bound by a confidential relationship with the Company, Ashford Inc. or an entity advised by the Company or the affiliated entities of such entities or by a confidentiality or other similar agreement; or (iii) is required to be disclosed by law, court order or other legal process; provided, however, that in the event disclosure is required by law, court order or legal process, Executive shall provide the Company, if legally permissible, with prompt notice of such requirement as set forth below in this Section 9.

 

The Executive acknowledges that the Confidential Information shall remain at all times the exclusive property of the Company, and no license is granted. In the event of the termination of his employment, whether voluntary or involuntary and whether by the Company or the Executive, or within seven (7) business days of the Company’s request under any other circumstances, the Executive shall deliver to the Company all Confidential Information, in any form whatsoever, including electronic formats, and shall not take with him any Confidential Information or any reproductions (in whole or in part) or extracts of any items relating to the Confidential Information. The Company acknowledges that prior to his employment with the Company, the Executive has lawfully acquired extensive knowledge of the industries in which the Company engages in business including, without limitation, markets, valuation methods and techniques, capital markets, investor relationships and similar items, and that the provisions of this Section 9 are not intended to restrict the Executive’s use of such previously acquired knowledge.

 

In the event that the Executive receives a request or is required (by deposition, interrogatory, request for documents, subpoena, civil investigative demand or similar process) to disclose all or any part of the Confidential Information, the Executive agrees, if legally permissible, to (a) promptly notify the Company of the existence, terms and circumstances surrounding such request or requirement, (b) consult with the Company on the advisability of taking legally available steps to resist or narrow such request or requirement and (c) assist the Company in seeking a protective order or other appropriate remedy; provided, however, that the Executive shall not be required to take any action in violation of applicable laws. In the event that such protective order or other remedy is not obtained or that the Company waives compliance with the provisions hereof, the Executive shall not be liable for such disclosure unless disclosure to any such tribunal was caused by or resulted from a previous disclosure by the Executive not permitted by this Agreement.

 

By this Agreement, the Company is providing the Executive with rights that the Executive did not previously have.  In exchange for the foregoing and the additional terms agreed to in this

 

13

 

Agreement, the Executive agrees that: (i) he is being provided with access to Confidential Information to which he has not previously had access; and (ii) all goodwill developed with the Company’s clients, customers and other business contacts by the Executive is the exclusive property of the Company.  The Executive waives and releases any claim that he should be able to use, for the benefit of any competing person or entity, Confidential Information that was previously received or developed by the Executive while working for the Company, Ashford Inc. or any entity advised by the Company.

 

10.                               NON-COMPETITION, NON-SOLICITATION AND NON-INTERFERENCE.

 

(a)                                 NON-COMPETITION. During the Term and any Non-Compete Period (hereinafter defined), the Executive will not, directly or indirectly, either as a principal, agent, employee, employer, stockholder or partner engage in any “Competitive Business”; PROVIDED, HOWEVER, the foregoing shall not prohibit or limit the Executive’s right to pursue and maintain passive investments allowed pursuant to Section 1(c) hereof.

 

For purposes of this Section 10(a), “Competitive Business” means acquiring, investing in or with respect to, owning, leasing, managing or developing hotel properties in the United States or in any international market in which the Company or any clients it advises conduct such business or originating or acquiring loans in respect of hotel properties in the United States or in any international market in which the Company or any clients it advises conduct such business, in each case, where the Executive had duties or performed services for the Company, which the parties stipulate is a reasonable geographic area because of the scope of the Company’s operations and the Executive’s employment with the Company.  The Executive may not avoid the purpose and intent of this restriction by engaging in conduct within the geographically limited area from a remote location through means such as telecommunications, written correspondence, computer generated or assisted communications, or other similar methods.

 

For purposes of this Section 10(a), the “Non-Compete Period” shall mean the period ending on the first anniversary of his Date of Termination.

 

The Executive acknowledges that the services provided by the Executive are of a special, unique, and extraordinary nature. The Executive further acknowledges that his work and experience with the Company will enhance his value to a Competitive Business, and that the nature of the Confidential Information to which the Executive has immediate access and will continue to have access during the course of his employment makes it difficult, if not impossible, for him to engage in any Competitive Business without disclosing or utilizing the Confidential Information. The Executive further acknowledges that his work and experience with the Company places him in a position of trust with the Company.

 

(b)                                 NON-SOLICITATION OF EMPLOYEES. The Executive covenants and agrees that (i) during the Term, and (ii) during the period ending on the first anniversary of his Date of Termination, he shall not, without the prior written consent of the Company, directly or indirectly, whether for his own account or on behalf of any person, firm, corporation, partnership, association or other entity or enterprise, solicit, recruit, hire or cause to be hired any employees of the Company or any of its affiliates, or any person who was an employee of the Company during the six months preceding the Executive’s Date of Termination, or solicit or encourage any employee of the

 

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Company or any of its affiliates to leave the employment of the Company or any of such affiliates, as applicable.  The parties hereto agree that (i) the placement of general advertisements that may be targeted to a particular geographic or technical area but which are not targeted directly or indirectly towards any employees, officers, agents or representatives of the Company (or any successor entity) shall not be deemed a breach of this Section 10(b) and (ii) the employment or engagement of such persons by an entity that is not controlled by Executive and whom Executive did not encourage, solicit or induce or in any manner attempt to encourage, solicit or induce to terminate his or her employment with the Company shall not be deemed a breach of this Section 10(b).

 

(c)                                  NON-INTERFERENCE WITH COMPANY OPPORTUNITIES.  The Executive understands and agrees that all business opportunities with which he is involved during his employment with the Company constitute valuable assets of the Company and its affiliated entities, and may not be converted to Executive’s own use or converted by Executive for the use of any person, firm, corporation, partnership, association or other entity or enterprise.  Accordingly, Executive agrees that during the Term, Executive shall not, directly or indirectly, whether for his own account or on behalf of any person, firm, corporation, partnership, association or other entity or enterprise, interfere with, solicit, pursue, or in any manner make use of any such business opportunities.

 

(d)                                 REASONABLE RESTRAINTS. The Executive agrees that restraints imposed upon him pursuant to this Section are necessary for the reasonable and proper protection of the Company and its subsidiaries and affiliates, and that each and every one of the restraints is reasonable in respect to subject matter, length of time and geographic area. The parties further agree that, in the event that any provision of this Section shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law.

 

11.                               NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company and for which the Executive may qualify, nor shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company. Amounts which are vested benefits or which the Executive is otherwise entitled to receive under any plan, policy, practice or program of or any contract agreement with the Company at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or program or contract or agreement except as explicitly modified by this Agreement. Notwithstanding anything in this Agreement or any such plan, policy, practice or program noted above to the contrary, the timing of all payments pursuant to this Agreement or any such plan, policy, practice or program shall be subject to the timing rules specified in Section 7(h) of this Agreement.

 

12.                               FULL SETTLEMENT. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may have against the Executive or others. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the

 

15

 

Executive under any of the provisions of this Agreement and except as expressly provided, such amounts shall not be reduced whether or not the Executive obtains other employment. The Company agrees to pay as incurred (within thirty (30) days following the Company’s receipt of an invoice from the Executive), to the full extent permitted by law, all reasonable legal fees and expenses which the Executive or his beneficiaries may reasonably incur as a result of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the validity or enforceability of, or liability under, any provision of this Agreement or any guarantee of performance thereof (including as a result of any contest by the Executive or his beneficiaries about the amount of any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the applicable Federal rate provided for in Section 7872(f)(2)(a) of the Code to the extent permitted by 409A. The preceding sentence shall not apply with respect to any such contest if the court having jurisdiction over such contest determines that the Executive’s claim in such contest is frivolous or maintained in bad faith. This reimbursement obligation shall remain in effect following the Executive’s termination of employment for the applicable statute of limitations period relating to any such claim, and the amount of reimbursements hereunder during any tax year shall not affect the expenses eligible for reimbursement in any other tax year. Such reimbursements are intended to comply with Treasury Regulation Section 1.409A-3(i)(1)(iv)(A).

 

13.                               DISPUTES.

 

(a)                                 EQUITABLE RELIEF. The Executive acknowledges and agrees that upon any breach by the Executive of his obligations under Sections 9 or 10 hereof, the Company will have no adequate remedy at law, and accordingly will be entitled to specific performance and other appropriate injunctive and equitable relief.  In the event an enforcement remedy is sought under Section 10 hereof, the time periods provided for in that Section shall be extended by one day for each day the Executive failed to comply with the restriction at issue.

 

(b)                                 ARBITRATION. Excluding only requests for equitable relief by the Company under Section 13(a) of this Agreement, in the event that there is any claim or dispute arising out of or relating to this Agreement, or the breach thereof, and the parties hereto shall not have resolved such claim or dispute within sixty (60) days after written notice from one party to the other setting forth the nature of such claim or dispute, then such claim or dispute shall be settled exclusively by binding arbitration in Dallas, Texas in accordance with the Commercial Arbitration Rules of the American Arbitration Association by an arbitrator mutually agreed upon by the parties hereto or, in the absence of such agreement, by an arbitrator selected according to such Rules. Notwithstanding the foregoing, if either the Company or the Executive shall request, such arbitration shall be conducted by a panel of three arbitrators, one selected by the Company, one selected by the Executive and the third selected by agreement of the first two, or, in the absence of such agreement, in accordance with such Rules. Neither party shall have the right to claim or recover punitive damages. Judgment upon the award rendered by such arbitrator(s) shall be entered in any Court having jurisdiction thereof upon the application of either party.

 

14.                               INDEMNIFICATION. The Company will indemnify the Executive, to the maximum extent permitted by applicable law, against all costs, charges and expenses incurred or sustained by the Executive, including the cost of legal counsel selected and retained by the Executive in connection with any action, suit or proceeding to which the Executive may be made a party by reason of the Executive being or having been an officer, director, or employee of the

 

16

 

Company or any subsidiary or affiliate of the Company, any entity advised by the Company or any new platform or entity to be created by, or spun-off from, Ashford Inc., Braemar or Ashford Trust. The Company’s obligations under this Section 14 shall be in addition to any other indemnification rights to which the Executive may be entitled.

 

15.                               COOPERATION IN FUTURE MATTERS. The Executive hereby agrees that, for a period of one (1) year following his termination of employment, he shall cooperate with the Company’s reasonable requests relating to matters that pertain to the Executive’s employment by the Company, including, without limitation, providing information or limited consultation as to such matters, participating in legal proceedings, investigations or audits on behalf of the Company, or otherwise making himself reasonably available to the Company for other related purposes. Any such cooperation shall be performed at times scheduled taking into consideration the Executive’s other commitments, including business and family matters, and the Executive shall be compensated at a reasonable hourly or PER DIEM rate to be agreed by the parties to the extent such cooperation is required on more than an occasional and limited basis. The Executive shall not be required to perform such cooperation to the extent it conflicts with any requirements of exclusivity of services for another employer or otherwise, nor in any manner that in the good faith belief of the Executive would conflict with his rights under or ability to enforce this Agreement.

 

16.                               GENERAL.

 

(a)                                 NOTICES. All notices and other communications hereunder shall be in writing or by written telecommunication, and shall be deemed to have been duly given if delivered personally or if sent by overnight courier or by certified mail, return receipt requested, postage prepaid or sent by written telecommunication or telecopy, to the relevant address set forth below, or to such other address as the recipient of such notice or communication shall have specified to the other party hereto in accordance with this Section 16(a).

 

	
If to the Company, to:
    	
 
    	
Ashford Hospitality Services, LLC
    
	
 
    	
 
    	
14185 Dallas Parkway, Suite 1100
    
	
 
    	
 
    	
Dallas, Texas 75254
    
	
 
    	
 
    	
Attn: Monty J. Bennett
    
	
 
    	
 
    	
 
    
	
with a copy to:
    	
 
    	
Ashford Inc.
    
	
 
    	
 
    	
14185 Dallas Parkway, Suite 1100
    
	
 
    	
 
    	
Dallas, Texas 75254
    
	
 
    	
 
    	
Attn: General Counsel
    
	
 
    	
 
    	
 
    
	
and
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Ashford Inc.
    
	
 
    	
 
    	
14185 Dallas Parkway, Suite 1100
    
	
 
    	
 
    	
Dallas, Texas 75254
    
	
 
    	
 
    	
Attn: Lead Director
    

 

If to the Executive, at his last residence shown on the records of the Company,

 

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with a copy to:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

Any such notice shall be effective (i) if delivered personally, when received, (ii) if sent by overnight courier, when receipted for, and (iii) if mailed, two (2) days after being mailed as described above.

 

(b)                                 SEVERABILITY. If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired.

 

(c)                                  WAIVERS. No delay or omission by either party hereto in exercising any right, power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privilege.

 

(d)                                 COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. In making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

 

(e)                                  ASSIGNS. This Agreement shall be binding upon and inure to the benefit of the Company’s successors and the Executive’s personal or legal representatives, executors, administrators, heirs, distributees, devisees and legatees. This Agreement shall not be assignable by the Executive, it being understood and agreed that this is a contract for the Executive’s personal services. This Agreement shall not be assignable by the Company except in connection with a transaction involving the succession by a third party to all or substantially all of the Company’s business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise), in which case such successor shall assume this Agreement and expressly agree to perform this Agreement in the same manner and to the same extent as the Company would be required to perform it in the absence of a succession; however such assignment by the Company shall not affect Executive’s rights as described in Section 8. For all purposes under this Agreement, the term “Company” shall include any successor to the Company’s business and/or assets that executes and delivers the assumption agreement described in the immediately preceding sentence or that becomes bound by this Agreement by operation of law.

 

(f)                                   ENTIRE AGREEMENT. This Agreement contains the entire understanding of the parties, supersedes all prior agreements and understandings, including the Original Agreement, whether written or oral, relating to the subject matter hereof, and may not be amended except by a written instrument hereafter signed by the Executive and the Company.

 

(g)                                  GOVERNING LAW. This Agreement and the performance hereof shall be construed and governed in accordance with the laws of the State of Texas, without giving effect to principles of conflicts of law. Jurisdiction and venue shall be solely in the federal or state courts of Dallas County, Texas. This provision should not be read as a waiver of any right to removal to federal court in Dallas County.

 

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(h)                                 CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. The headings of sections of this Agreement are for convenience of reference only and shall not affect its meaning or construction.

 

(i)                                     PAYMENTS AND EXERCISE OF RIGHTS AFTER DEATH. Any amounts due hereunder after the Executive’s death shall be paid to the Executive’s designated beneficiary or beneficiaries, whether received as a designated beneficiary or by will or the laws of descent and distribution. The Executive may designate a beneficiary or beneficiaries for all purposes of this Agreement, and may change at any time such designation, by notice to the Company making specific reference to this Agreement. If no designated beneficiary survives the Executive or the Executive fails to designate a beneficiary for purposes of this Agreement prior to his death, all amounts thereafter due hereunder shall be paid, as and when payable, to his spouse, if she survives the Executive, and otherwise to his estate.

 

(j)                                    CONSULTATION WITH COUNSEL. The Executive acknowledges that he has had a full and complete opportunity to consult with counsel or other advisers of his own choosing concerning the terms, enforceability and implications of this Agreement, and that the Company has not made any representations or warranties to the Executive concerning the terms, enforceability and implications of this Agreement other than as are reflected in this Agreement.

 

(k)                                 WITHHOLDING. Any payments provided for in this Agreement shall be paid net of any applicable tax withholding required under federal, state or local law.

 

(l)                                     NON-DISPARAGEMENT. The Executive agrees that, during the Term and thereafter including following Executive’s termination of employment for any reason) he will not make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage the Company or its affiliates or their respective officers, directors, employees, advisors, businesses or reputations. The Company agrees that, during the Term and thereafter (including following Executive’s termination of employment for any reason), the Company’s directors, officers or other employees will not make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may directly or indirectly, disparage Executive or his family or his business or reputation; provided, however, the Company shall have no liability for any communication by its employees (other than its officers) that violates this non-disparagement clause, unless an officer of the Company is made aware of such communication and fails to take appropriate action to enforce this non-disparagement clause on behalf of the Company.  Notwithstanding the foregoing, nothing in this Agreement shall preclude either Executive or the Company from making truthful statements or disclosures that are required by applicable law, regulation, or legal process. Notwithstanding the foregoing, nothing in this Agreement prohibits Executive from reporting possible violations of federal law or regulation to any government agency or entity or making the other disclosure protected under whistleblower provisions of law. Executive does not need prior authorization to make such reports or disclosures and is not required to notify the Company that he has made any such report or disclosure.

 

(m)                             CODE SECTION 409A. It is the intention of the parties to this Agreement that no payment or entitlement pursuant to this Agreement will give rise to any adverse tax consequences

 

19

 

to the Executive under Section 409A of the Code.  The Agreement shall be interpreted to that end and, consistent with that objective and notwithstanding any provision herein to the contrary, the Company may unilaterally take any action it deems necessary or desirable to amend any provision herein to avoid the application of or excise tax under Section 409A.  Further, no effect shall be given to any provision herein in a manner that reasonably could be expected to give rise to adverse tax consequences under that provision.

 

[SIGNATURE PAGE FOLLOWS]

 

20

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused this Agreement to be duly executed under seal as of the date first above written.

 

 

	
 
    	
ASHFORD   HOSPITALITY SERVICES, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deric S. Eubanks
    
	
 
    	
Name:
    	
Deric   S. Eubanks
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ASHFORD   INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert G. Haiman
    
	
 
    	
Name:
    	
Robert   G. Haiman
    
	
 
    	
Title:
    	
EVP,   General Counsel & Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Jeremy Welter
    
	
 
    	
 JEREMY WELTER
    
				

 

 

EXHIBIT “A”

 

RELEASE AND WAIVER

 

THIS RELEASE AND WAIVER (the “Termination Release”) is made as of the        day of                    , 20       by JEREMY WELTER (the “Executive”).

 

WHEREAS, the Executive, ASHFORD INC. and the Company have entered into an Amended and Restated Employment Agreement (the “Agreement”) dated as of December 20, 2019 and providing certain compensation and severance amounts upon the Executive’s termination of employment; and

 

WHEREAS, the Executive has agreed, pursuant to the terms of the Agreement, to execute a release and waiver in the form set forth in this Termination Release in consideration of the Company’s agreement to provide the compensation and severance amounts upon the Executive’s termination of employment set out in the Agreement; and

 

WHEREAS, the Company and the Executive desire to settle all rights, duties and obligations between them, including without limitation all such rights, duties, and obligations arising under the Agreement or otherwise out of the Executive’s employment by the Company;

 

NOW THEREFORE, intending to be legally bound and for good and valid consideration the sufficiency of which is hereby acknowledged, the Executive agrees as follows:

 

1.                                      QUALIFYING TERMINATION PAYMENTS AND CONDITIONS.  The Executive and the Company acknowledge and agree that the Date of Termination is                    , 20   .  Payment of the compensation and severance amounts contained in the Agreement is subject to Executive’s execution and non-revocation of the Termination Release and is due pursuant to the terms described in the Agreement.  Consistent with the revocation period described below, no such payment will be due sooner than eight days following the date that Executive executes the Termination Release.

 

2.                                      GENERAL RELEASE BY EXECUTIVE.

 

(a)                                 The Executive knowingly and voluntarily releases, acquits, covenants not to sue and forever discharges the Company, and its respective owners, parents, stockholders, predecessors, successors, assigns, agents, directors, officers, employees, representatives, divisions and subsidiaries (collectively, the “Releasees”) from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, damages, causes of action, suits, rights, costs, losses, debts and expenses of any nature whatsoever, known or unknown, suspected or unsuspected, foreseen or unforeseen, matured or unmatured (collectively, the “Claims”), against them which the Executive or any of his heirs, executors, administrators, successors and assigns ever had, now has or at any time hereafter may have, own or hold by reason of any matter, fact, or cause whatsoever from the beginning of time up to and including the date of this Termination Release, including without limitation all claims arising under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, the Employee Retirement Income Security Act of 1974, Texas Labor Code Section 21.001, et seq. (Texas Employment Discrimination); Texas Labor Code Section 61.001, et seq. (Texas Pay Day Act);

 

 

Texas Labor Code Section 62.002, et seq. (Texas Minimum Wage Act); Texas Labor Code Section 201.001, et seq. (Texas Unemployment Compensation Act); Texas Labor Code Section 401.001, et seq., specifically Section 451.001 formerly codified as Article 8307c of the Revised Civil Statutes (Texas Workers’ Compensation Act and Discrimination Issues); and Texas Genetic Information and Testing Law, each as amended, or any other federal, state or local laws, rules, regulations, judicial decisions or public policies now or hereafter recognized.  Expressly excluded from this General Release are Claims which cannot be waived by law.

 

(b)                                 The Executive represents that he has not filed or permitted to be filed against any of the Releasees, any complaints, charges or lawsuits and covenants and agrees that he will not seek or be entitled to any personal recovery in any court or before any governmental agency, arbitrator or self-regulatory body against any of the Releasees arising out of any matters set forth in Section 1(a) hereof. Nothing herein shall prevent the Executive from seeking to enforce his rights under the Agreement. The Executive does not hereby waive or release his rights to any benefits under the Company’s employee benefit plans to which he is or will be entitled pursuant to the terms of such plans in the ordinary course.

 

3.                                      ADEA RELEASE BY EXECUTIVE.  The Executive hereby completely and forever releases and irrevocably discharges the Releasees, from any and all Claims arising under the Age Discrimination in Employment Act (“ADEA”) on or before the date the Executive signs this Termination Release (the “ADEA Release”), and hereby acknowledges and agrees that: (i) this Termination Release, including the ADEA Release, was negotiated at arm’s length; (ii) this Termination Release, including the ADEA Release, is worded in a manner that the Executive fully understands; (iii) the Executive specifically waives any rights or claims under the ADEA; (iv) the Executive knowingly and voluntarily agrees to all of the terms set forth in this Termination Release, including the ADEA Release; (v) the Executive acknowledges and understands that any claims under the ADEA that may arise after the date of this Termination Release are not waived; and (vi) the rights and claims waived in this Termination Release, including the ADEA Release, are in exchange for consideration over and above anything to which the Executive was already entitled.

 

4.                                      GENERAL RELEASE BY COMPANY.  The Company and its affiliates each does hereby fully, finally and completely release Executive from any and all Claims of any kind or nature arising out of the Executive’s employment with the Company arising from, relating to, or in any way connected with any facts or events occurring on or before the date of the Termination Release, provided, however, that the Executive is not released or discharged from his continuing obligations contained in the Termination Release, the Agreement, or in any other agreement with the Company.

 

5.                                      NON-DISPARAGEMENT. The Executive covenants and agrees he will not make statements or representations, or otherwise communicate, directly or indirectly, in writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage the Company or its affiliates or their respective officers, directors, employees, advisors, businesses or reputations. Notwithstanding the foregoing, nothing herein or in the Agreement shall preclude the Executive from making truthful statements or disclosures that are required by applicable law, regulation or legal process.  The Company covenants and agrees its directors, officers and other employees will not make statements or representations, or otherwise communicate, directly or indirectly, in

 

A-2

 

writing, orally, or otherwise, or take any action which may, directly or indirectly, disparage Executive or his family or his business or reputation; provided, however, the Company shall have no liability for any communication by its employees (other than its officers) that violates this non-disparagement clause, unless an officer of the Company is made aware of such communication and fails to take appropriate action to enforce this non-disparagement clause on behalf of the Company.  Notwithstanding the foregoing, nothing herein or in the Agreement shall preclude the Executive or the Company’s officers and directors from making truthful statements or disclosures that are required by applicable law, regulation, or legal process.

 

6.                                      REAFFIRMATION OF CONTINUING OBLIGATIONS. Nothing in this Termination Release shall be deemed to affect or relieve the Executive from any continuing obligation contained in any other agreement with the Company or the Company’s rights with respect thereto.  The Executive specifically acknowledges and reaffirms his continuing non-competition and non-solicitation obligations to the Company under the Agreement.  The Executive further acknowledges that this reaffirmation is material to this Termination Release, and the Executive acknowledges and agrees that his continuing non-competition and non-solicitation obligations under the Agreement are reasonable and enforceable and that he will not challenge or violate these covenants.

 

7.                                      MODIFICATION; WAIVER.  No modification or addition hereto or waiver or cancellation of any provision hereof shall be valid except by a writing signed by the party to be charged therewith.  No delay on the part of any party to this Termination Release in exercising any right or privilege provided hereunder or by law shall impair, prejudice or constitute a waiver of such right or privilege.

 

8.                                      SEVERABILITY.  If any provision contained in this Termination Release is determined to be void, illegal or unenforceable, in whole or in part, then the other provisions contained herein shall remain in full force and effect as if the provision which was determined to be void, illegal or unenforceable had not been contained herein.

 

9.                                      COSTS.  The parties hereto agree that each party shall pay its respective costs, including attorney’s fees, if any, associated with this Termination Release.

 

10.                               FULLY UNDERSTOOD; PAYMENTS RECEIVED.  By signing this Termination Release, the Executive acknowledges and affirms that he has read and understands the foregoing Termination Release, agreed to the terms of the Release Agreement, and acknowledges receipt of a copy of the Termination Release.  The Executive also hereby acknowledges and affirms the sufficiency of the compensation and severance amounts recited herein.  The Executive further acknowledges that upon receipt of the compensation and severance amounts recited herein, he shall not be entitled to any further payment, compensation or remuneration of any kind from the Company, with respect to the Executive’s employment with the Company or otherwise.

 

11.                               ENTIRE AGREEMENT.  This Termination Release contains the entire agreement between the Executive and the Company and supersedes any and all prior understandings or agreements with respect to the subject matter hereof, whether written or oral, except as set forth herein and with respect to any of the Executive’s continuing obligations contained elsewhere

 

A-3

 

(including those contained in the Agreement), which shall continue and remain in full force and effect per the terms of those covenants.

 

ACKNOWLEDGMENT. The Company has advised the Executive to consult with an attorney of his choosing prior to signing this Termination Release and the Executive hereby represents to the Company that he has been offered an opportunity to consult with an attorney prior to signing this Termination Release. The Company has also advised the Executive that Executive has up to twenty-one days to consider and sign the Termination Release and up to seven days after signing in which to revoke acceptance by giving notice to                                      at                                      by personal delivery or by mail postmarked no later than the seventh (7th) day after the Executive signs the Termination Release.  The Executive acknowledges and agrees that any changes in the terms of this Termination Release, whether material or immaterial, after the date upon which the Executive first received this Termination Release shall not affect or restart the above-referenced twenty-one day consideration period.

 

[SIGNATURE PAGE FOLLOWS]

 

A-4

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have executed this Termination Release under seal as of the day and year first above written.

 

 

	
 
    	
ASHFORD   HOSPITALITY SERVICES, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 Deric S. Eubanks
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ASHFORD   INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
Robert   G. Haiman
    
	
 
    	
Title:
    	
EVP,   General Counsel & Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EXECUTIVE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
JEREMY   WELTEREX-4.1

 Exhibit 4.1 
  

					
	

	 	             Industry Canada
	 	    Industrie Canada

  

					
	 Restated Certificate
 of
Incorporation
	 	                                     
   	  	 Certificat
 de constitution
à jour

			
	 Canada Business
 Corporations
Act
	 		  	 Loi canadienne sur
 les
sociétés par actions

  

					
	 PROMETIC LIFE SCIENCES INC./

PROMETIC SCIENCES DE LA VIE INC.
	 	 	  	307730-6
	 		 
	  

Name of corporation-Dénomination de la société
	 		  	  

Corporation number-Numéro de la société

	 		 
	I hereby certify that the articles of incorporation of the above-named corporation were restated under section 180 of the Canada Business Corporations Act as set out in
the attached restated articles of incorporation.	 	                    	  	Je certifie que les statuts constitutifs de la société susmentionnée ont été mis à jour en vertu de 1’article 180 de la
Loi canadienne sur les sociétés par actions, tel qu’il est indiqué dans les statuts mis à jour ci-joints.
	 

  
 Director - Directeur
	 	 	  	 May 19, 1998/le 19 mai
1998
  
 Effective Date of Restatement –

Date d’entrée en vigueur de la mise a jour

  
 

 

									
	 

  
	 	 Consumer and
 Corporate Affairs Canada
	 	 Consommation et
 Affaires commerciales
Canada
	 	 FORM 7

RESTATED ARTICLES OF

INCORPORATION
 (SECTION
180)
	 	 FORMULE 7

STATUTS CONSTITUTES
 MIS À
JOUR
 (ARTICLE 180)

		 	 Canada Business
 Corporations Act
	 	 Loi régissant les sociétiés

par actions de régime fédéral
	 		 	

  

			
	 1 — Name of corporation —
Dénomination de la société
	 	Corporation No. — N° de la société
		 
	 PROMETIC LIFE SCIENCES INC./

PROMETIC SCIENCES DE LA VIE INC.
	 	
307730-6

					
	 	 	 
	 2 — The place in Canada where the registered office is situated
	 		 	Lieu au Canada où est situé le siège social
			
	 Metropolitan Region of Montreal,

Province of Quebec, Canada
  
	 	            	 	
	 3 — The classes and any maximum number of
shares that the corporation is authorized to issue
	 	 	 	Catégories et tout nombre maximal d’actions que la société est autorisée à émettre
			
	 See Schedule 1 annexed hereto forming an integral part of these articles.

 
	 		 	
	 4 — Restrictons, if any, on share
transfers
	 	 	 	Restrictions sur le transfert des actions, s’il y a lieu
			
	 None
  
	 		 	
	 5 — Number (or minimum and maximum number) of
directors
	 	 	 	Nombre (ou nombre minimal et maximal) d’administrateurs
	 Minimum: 3     Maximum: 15
	 		 	
	 6 — Restrictions, if any, on business the
corporation may carry on
	 	 	 	Limites imposées à I’activité commerciale de la société, s’il y a lieu
			
	 None
  
	 		 	
	 7 — Other provsions, if any
	 	 	 	Autres dispositions, s’il y a lieu
			
	 None
	 		 	

  

			
	The foregoing restated articles of incorporation correctly set out, without substantive change, the corresponding provisions of the articles of incorporation as amended and supersede the original
articles of incorporation.	  	Cette mise à jour des statuts constitutifs démontre exactement, sans changement substantiel, les dispositions correspondantes des statuts constitutifs modifiés qui remplacent
les statuts constitutifs originaux.

															
	Signature	 	Date	 	 	 	 	 	 	 	 	  	FOR DEPARTMENTAL USE ONLY —
	 
      

	 	D - J	 	M	 	Y - A	  	À L’USAGE DU MINISTÈRE SEULEMENT
	 	 	1  	 	4  	 	0  	 	5  	 	9  	 	8  	  	
	 Title — Titre

 
      

	 	 	 	 	 	 	 	 	 	 	 	 	  	 Filed — Déposée

 7530-21-936-1389 (01-93) 46 

	
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation

  

 S C H E D U L E 1 

TO THE RESTATED ARTICLES OF INCORPORATION 

The Corporation is authorized to issue an unlimited number of Subordinate Voting Shares, 20,000,000 Multiple Voting Shares and an unlimited
number of Preferred Shares issuable in series. 
 SUBORDINATE VOTING SHARES AND MULTIPLE VOTING SHARES: 

The Subordinate Voting Shares and the Multiple Voting Shares shall have the following rights, privileges, restrictions and conditions: 

 

	1.	 VOTING RIGHTS 

 

	 	1.1	 The holders of the Subordinate Voting Shares shall be entitled to one (1) vote for each Subordinate Voting
Share held by them at all meetings of shareholders. 

  

	 	1.2	 Subject to the other provisions of this Schedule 1, the holders of the Multiple Voting Shares shall be entitled
to ten (10) votes for each Multiple Voting Share held by them at all meetings of shareholders. 

  

	2.	 LIQUIDATION, DISSOLUTION OR OTHER DISTRIBUTION OF ASSETS 

In the event of the voluntary or involuntary liquidation, dissolution, winding-up or
other distribution of assets of the Corporation, the holders of the Subordinate Voting Shares and of the Multiple Voting Shares shall be entitled to receive the remaining property of the Corporation, pari passu, to the exclusion of the
holders of shares of any other class; 
  

	3.	 DIVIDENDS 

The holders of the Subordinate Voting Shares and of the Multiple Voting Shares shall be entitled, pari passu, subject to
the other provisions of this Schedule 1, to receive such dividends as may be declared by the directors of the Corporation from time to time. 
  

	4.	 CONVERTIBILITY 

 

	 	4.1	 The holders of the Multiple Voting Shares shall have the right, at any time, to require that the Corporation
exchange Multiple Voting Shares into Subordinate Voting Shares, on the basis of one (1) Subordinate Voting Share for each Multiple Voting Share to be exchanged. Such exchange shall be completed by the remittance to the Corporation of a written
notice to that effect together with the share certificates duly endorsed for transfer to the Corporation. 

	
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation

- 2 - 
  

	 	4.2	 The issued and outstanding Multiple Voting Shares shall automatically convert and be exchanged into Subordinate
Voting Shares by each holder of Multiple Voting Shares if such holder of Multiple Voting Shares desires to transact such shares following the completion by the Corporation of a public offering. 

 

	5.	 AMENDMENTS SUBJECT TO CONFIRMATION BY ARTICLES OF AMENDMENT 

Subject to confirmation by articles of amendment and the issue of a Certificate of Amendment, the director or directors of the
Corporation may, at any time or times or from time to time, adopt a resolution or resolutions whereby the terms hereof and of the foregoing paragraphs may be altered, amended or repealed or the application thereof suspended in any particular case
and changes made in the rights, privileges, restrictions and conditions attached to one or more classes of shares of the Corporation, but no such resolution shall have any force or effect until after it has been sanctioned by the vote of the holders
of at least sixty-six and two thirds percent (66 2/3%) in value of the voting shares then outstanding and of at least sixty-six and two thirds percent (66 2/3%) in value
of shares of each class affected by such amendment, in each case voting separately as a class at a meeting or meetings specially called for such purpose. 
  

	6.	 ADDITIONAL RIGHTS OF SUBORDINATE VOTING SHARES 

SEE “APPENDIX A” ATTACHED HERETO FOR ADDITIONAL RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS PERTAINING TO THE SUBORDINATE VOTING
SHARES. 
 PREFERRED SHARES: 

The Preferred Shares are issuable in series and shall have the following rights, privileges, restrictions and conditions: 

 

	1.	 The directors of the Corporation may at any time and from time to time issue the Preferred Shares in one or
more series, each series to consist of such number of shares as may before issuance thereof be determined by the directors. 

	
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation

- 3 - 
  

	2.	 Subject to the provisions of paragraph 10, the holders of the Preferred Shares shall not, as such, have any
voting rights for the election of directors or for any other purpose nor shall they be entitled to attend shareholders’ meetings. 

  

	3.	 The directors of the Corporation may (subject as hereinafter provided) from time to time fix before issuance
the designation, rights, restrictions, conditions and limitations to be attached to the Preferred Shares of each series including, without limiting the generality of the foregoing, the rate, amount or method of calculation of preferential dividends,
whether or not cumulative or non-cumulative or partially cumulative, and whether such rate, amount or method of calculation shall be subject to change or adjustment in the future, the currency or currencies of
payment, the date or dates and place or places of payment thereof and the date or dates from which such preferential dividends shall accrue, the redemption price and terms and conditions of redemption, the rights of retraction, if any, vested in the
holders of Preferred Shares of such series, and the prices and the other terms and conditions of any rights of retraction, and whether any additional rights of retraction may be vested in such holders in the future, conversion rights (if any) or
other provisions attaching to the Preferred Shares of such series, the whole subject to the issue by the Director, Industry Canada, of a certificate of amendment in respect of articles of amendment in prescribed form to designate a series of shares.

  

	4.	 When any fixed cumulative dividends or amounts payable on a return of capital are not paid in full, the
Preferred Shares of all series shall participate rateably in respect of such dividends including accumulations, if any, in accordance with the sums which would be payable on the Preferred Shares if all such dividends were declared and paid in full,
and on any return of capital in accordance with the sums which would be payable on such return of capital if all sums so payable were paid in full. 

  

	5.	 The Preferred Shares shall be entitled to preference over the other classes of shares of the Corporation with
respect to the payment of dividends and may also be given such other preferences over the other classes of shares of the Corporation as may be fixed by the directors of the Corporation as to the respective series authorized to be issued.

  

	6.	 The Preferred Shares of each series shall rank on a parity with the Preferred Shares of every other series with
respect to priority in payment of dividends and in the distribution of assets in the event of liquidation, dissolution or winding-up of the Corporation whether voluntary or involuntary. 

 

	7.	 In the event of the liquidation, dissolution or winding-up of the
Corporation or other distribution of assets of the Corporation among shareholders for the purpose of winding-up its affairs, the holders of the Preferred Shares shall, before any amount shall be paid to or any
property or assets of the Corporation distributed among the holders of 

	
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation

- 4 - 
  

	 	
the other classes of shares of the Corporation, be entitled to receive (i) an amount equal to the amount paid up on such shares, together with, in the case of cumulative dividends,
all unpaid cumulative dividends (which for such purpose shall be calculated as if such cumulative dividends were accruing from day to day for the period from the expiration of the last period for which cumulative dividends have been paid up to and
including the date of distribution) and, in the case of non-cumulative dividends, all declared and unpaid non-cumulative dividends, and (ii) if such
liquidation, dissolution, winding-up or distribution shall be voluntary, an additional amount equal to the premium, if any, which would have been payable on the redemption of the said Preferred Shares,
respectively, if they had been called for redemption by the Corporation on the date of distribution and, if said Preferred Shares could not be redeemed on such date, then an additional amount equal to the greatest premium, if any, which would have
been payable on the redemption of said Preferred Shares, respectively. 

  

	8.	 No dividends shall at any time be declared or paid on or set apart for payment on any shares of the Corporation
ranking junior to the Preferred Shares unless all dividends up to and including the dividend payable for the last completed period for which such dividends shall be payable on each series of Preferred Shares then issued and outstanding shall have
been declared and paid or set apart for payment at the date of such declaration or payment or setting apart for payment on such shares of the Corporation ranking junior to the Preferred Shares nor, unless any such requirement is waived as part of
the conditions, restrictions and limitations attaching to a particular series of Preferred Shares, shall the Corporation call for redemption or redeem or purchase for cancellation or reduce or otherwise pay off any of the Preferred Shares (less than
the total amount then outstanding) or any shares of the Corporation ranking junior to the Preferred Shares unless all dividends up to and including the dividend payable for the last completed period for which such dividends shall be payable on each
series of the Preferred Shares then issued and outstanding shall have been declared and paid or set apart for payment at the date of such call for redemption, purchase, reduction or other payment. 

 

	9.	 The Preferred Shares of any series may be purchased for cancellation or made subject to redemption by the
Corporation at such times and at such prices and upon such other terms and conditions as may be specified in the rights, privileges, restrictions and conditions attaching to the Preferred Shares of such series as set forth in the resolution of the
board of directors of the Corporation and certificate of amendment relating to such series. 

  

	10.	 The provisions of paragraphs 1 to 9, inclusive, and of this paragraph 10 may be deleted or varied in whole
or in part by a Certificate of Amendment, but only with the prior approval of the holders of the Preferred Shares given as hereinafter specified in addition to any other approval required by the Canada Business Corporations Act (or any other

	
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation

- 5 - 
  

	 	
statutory provision of like or similar effect, from time to time in force). The approval of the holders of the Preferred Shares with respect to any and all matters hereinbefore referred to may be
given by at least 2/3 of the votes cast at a meeting of the holders of the Preferred Shares duly called for that purpose and held upon at least 21 days’ notice at which the holders of a majority of the outstanding Preferred Shares are present
or represented by proxy. If at any such meeting the holders of a majority of the outstanding Preferred Shares are not present or represented by proxy within one-half hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being not less than 30 days later and to such time and place as may be appointed by the chairman and not less than 21 days’ notice shall be given of such adjourned meeting but it shall
not be necessary in such notice to specify the purpose for which the meeting was originally called. At such adjourned meeting the holders of Preferred Shares present or represented by proxy may transact the business for which the meeting was
originally called and a resolution passed thereat by not less than 2/3 of the votes cast at such adjourned meeting shall constitute the authorization of the holders of the Preferred Shares referred to above. The formalities to be observed in respect
of the giving of notice of any such meeting or adjourned meeting and the conduct thereof shall be those from time to time prescribed by the by-laws of the Corporation with respect to meetings of shareholders.
On every poll taken at every such meeting or adjourned meeting every holder of Preferred Shares shall be entitled to one vote in respect of each Preferred Share held. 

					
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation
	 		 	

  

 A P P E N D I X A 

TO SCHEDULE 1 OF THE RESTATED ARTICLES OF INCORPORATION 

ADDITIONAL RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS PERTAINING TO THE SUBORDINATE VOTING SHARES 

The following Section is added to the Schedule 1 to the Restated Articles of Incorporation of the Corporation: 

1.    The Subordinate Voting Shares shall also be subject to the following additional rights, privileges, restrictions and conditions:

  

	1.1	 For the purposes of paragraphs 1.1 to 1.9: 

 

	 	(a)	 “affiliate” has the meaning assigned by the Securities Act (Quebec) as amended from time to time;

  

	 	(b)	 “associate” has the meaning assigned by the Securities Act (Quebec) as amended from time to time;

  

	 	(c)	 “Conversion Period” means the period of time commencing on the eighth day after the Offer Date and
terminating on the Expiry Date; 

  

	 	(d)	 “Converted Shares” means Multiple Voting Shares resulting from the conversion of Subordinate Voting
Shares into Multiple Voting Shares pursuant to paragraph 1.2; 

  

	 	(e)	 “Exclusionary Offer” means an offer to purchase Multiple Voting Shares that: 

(i)    must, by reason of applicable securities legislation or the requirements of a stock exchange on which the Multiple
Voting Shares are listed, be made to all holders of Multiple Voting Shares who are in a province of Canada to which the requirement applies, and 

(ii)    is not made concurrently with an offer to purchase Subordinate Voting Shares that is identical to the offer to
purchase Multiple Voting Shares, in terms of price per share and percentage of outstanding shares to be taken up exclusive of shares owned immediately prior to the offer by the Offeror, and in all other material respects (except with respect to the
conditions that may be attached to the offer for Multiple Voting Shares), and that has no condition attached other than the right not to take up and pay for shares tendered if no 

					
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation
	 	- 2 -	 	

  

 
shares are purchased pursuant to the offer for Multiple Voting Shares, and for the purposes of this definition if an offer to purchase Multiple Voting Shares is not an Exclusionary Offer as
defined above but would be an Exclusionary Offer if it were not for sub-clause (ii), the varying of any term of such offer shall be deemed to constitute the making of a new offer unless an identical variation
concurrently is made to the corresponding offer to purchase Subordinate Voting Shares provided; however, that the offer shall be an Exclusionary Offer notwithstanding any concurrent offer made to the holders of Subordinate Voting Shares, if the
conditions of sub-clause 1.1 (e) (i) are met and there exists no public market for the Multiple Voting Shares; 
  

	 	(f)	 “Expiry Date” means the last date upon which holders of Multiple Voting Shares may accept an
Exclusionary Offer; 

  

	 	(g)	 “Offer Date” means the date on which an Exclusionary Offer is made; 

 

	 	(h)	 “Offeror” means a person or company that makes an offer to purchase Multiple Voting Shares (the
“bidder”), and includes any associate or affiliate of the bidder or any person or company that is disclosed in the offering document to be acting jointly or in concert with the bidder; and 

 

	 	(j)	 “transfer agent” means the transfer agent for the time being of the Multiple Voting Shares.

  

	1.2	 Subject to paragraph 1.5, if an Exclusionary Offer is made, each outstanding Subordinate Voting Share shall be
convertible into one Multiple Voting Share at the option of the holder during the Conversion Period. The conversion right may be exercised by notice in writing given to the transfer agent accompanied by the share certificate or certificates
representing the Subordinate Voting Shares which the holder desires to convert, and such notice shall be executed by such holder, or by his attorney duly authorized in writing, and shall specify the number of Subordinate Voting Shares which the
holder desires to have converted. The holder shall pay any governmental or other tax imposed on or in respect of such conversion. Upon receipt by the transfer agent of such notice and share certificate or certificates, the Corporation shall issue a
share certificate representing fully-paid Multiple Voting Shares as above prescribed and in accordance with paragraph 1.4. If less than all of the Subordinate Voting Shares represented by any share certificate are to be converted, the holder shall
be entitled to receive a new share certificate representing in the aggregate the number of Subordinate Voting Shares represented by the original share certificate which are not to be converted. 

 

	1.3	 An election by a holder of Subordinate Voting Shares to exercise the conversion right provided for in paragraph
1.2 shall be deemed to also constitute irrevocable elections by such holder (A) to deposit the Converted Shares pursuant to the Exclusionary Offer 

					
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation
	 	- 3 -	 	

  

	 	
(subject to such holder’s right to subsequently withdraw the shares from the offer) and (B) to exercise the right to convert into Subordinate Voting Shares all Converted Shares (i) in
respect of which such holder exercises his right of withdrawal from the Exclusionary Offer, (ii) which are not otherwise ultimately taken up under the Exclusionary Offer, or (iii) which are ultimately taken up under the Exclusionary Offer
(this latter election shall be deemed to be an irrevocable joint election by such holder and the Offeror). Any conversion into Subordinate Voting Shares, pursuant to such deemed election, of Converted Shares in respect of which the holder exercises
his right of withdrawal from the Exclusionary Offer shall become effective at the time such right of withdrawal is exercised. If the right of withdrawal is not exercised, any conversion into Subordinate Voting Shares pursuant to such deemed election
shall become effective, 

  

	 	(a)	 in respect of an Exclusionary Offer which is completed, immediately following the time by which the Offeror is
required by applicable securities legislation to take up and pay for all shares to be acquired by the Offeror under the Exclusionary Offer; and 

  

	 	(b)	 in respect of an Exclusionary Offer which is abandoned or withdrawn, at the time at which the Exclusionary
Offer is abandoned or withdrawn. 

  

	1.4	 No share certificates representing Converted Shares shall be delivered to the holders of the shares before such
shares are deposited pursuant to the Exclusionary Offer; the transfer agent, on behalf of the holders of the Converted Shares, shall deposit pursuant to the Exclusionary Offer a certificate or certificates representing the Converted Shares. Upon
completion of the offer, the transfer agent shall deliver to the holders entitled thereto all consideration paid by the Offeror for their Converted Shares pursuant to the offer. When Converted Shares are converted into Subordinate Voting Shares
pursuant to paragraph 1.3, the transfer agent shall deliver to the holders entitled thereto share certificates representing the Subordinate Voting Shares resulting from the conversion. The Corporation shall make all arrangements with the transfer
agent necessary or desirable to give effect to this paragraph 1.4. 

  

	1.5	 Subject to paragraph 1.6, the conversion right provided for in paragraph 1.2 shall not come into effect if
there exists a public market for the Multiple Voting Shares and: 

  

	 	(a)	 prior to the time at which the offer is made there is delivered to the transfer agent and to the Secretary of
the Corporation a certificate or certificates signed by or on behalf of one or more shareholders of the Corporation owning in the aggregate, as at the time the Exclusionary Offer is made, more than 50% of the aggregate of the then outstanding shares
of the class or classes that are the subject of the Exclusionary Offer, exclusive of shares owned immediately prior to the Exclusionary Offer by the Offeror, which certificate or certificates shall confirm, in the case of each such shareholder, that
such shareholder shall not: 

 (i)    tender any shares in acceptance of any Exclusionary Offer without
giving the transfer agent and the Secretary of the Corporation written notice of such acceptance or intended acceptance at least seven days prior to the Expiry Date, 

					
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation
	 	- 4 -	 	

  

 (ii)    make any Exclusionary Offer, 

(iii)    act jointly or in concert with any person or company that makes any Exclusionary Offer, or 

(iv)    transfer any shares of any of the classes of shares that are the subject of the Exclusionary Offer, directly or
indirectly, during the time at which any Exclusionary Offer is outstanding without giving the transfer agent and the Secretary of the Corporation written notice of such transfer or intended transfer at least seven days prior to the Expiry Date,
which notice shall state, if known to the transferor, the names of the transferees and the number and class or classes of shares transferred or to be transferred to each transferee; 

or 
  

	 	(b)	 as of the end of the seventh day after the Offer Date there has been delivered to the transfer agent and to the
Secretary of the Corporation a certificate or certificates signed by or on behalf of one or more shareholders of the Corporation owning in the aggregate more than 50 % of the aggregate of the then outstanding shares of the class or classes that
are the subject of the Exclusionary Offer, exclusive of shares owned immediately prior to the Exclusionary Offer by the Offeror, which certificate or certificates shall confirm, in the case of each such shareholder: 

(i)    the number of shares of any of the classes of shares that are the subject of the Exclusionary Offer owned by the
shareholder, 
 (ii)    that such shareholder is not making the offer and is not an associate or affiliate of, or acting
jointly or in concert with, the person or company making the offer, 
 (iii)    that such shareholder shall not tender
any shares in acceptance of the offer, including any varied form of the offer, without giving the transfer agent and the Secretary of the Corporation written notice of such acceptance or intended acceptance at least seven days prior to the Expiry
Date, and 
 (iv)    that such shareholder shall not transfer any shares of any of the classes of shares that are the
subject of the Exclusionary Offer, directly or 

					
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation
	 	- 5 -	 	

  

 indirectly, prior to the Expiry Date without giving the transfer agent and the Secretary of
the Corporation written notice of such transfer or intended transfer at least seven days prior to the Expiry Date, which notice shall state, if known to the transferor, the names of the transferees and the number and class or classes of shares
transferred or to be transferred to each transferee; 
 or 
  

	 	(c)	 as of the end of the seventh day after the Offer Date a combination of certificates that comply with either
clause (a) OR (b) from shareholders of the Corporation owning in the aggregate more than 50% of the aggregate of the then outstanding shares of the class or classes that are the subject of the Exclusionary Offer, exclusive of shares owned
immediately prior to the Exclusionary Offer by the Offeror, has been delivered to the transfer agent and to the Secretary of the Corporation. 

  

	1.6	 If a notice referred to in sub-clause 1.5(a)(i), 1.5 (a)(iv),
1.5(b)(iv) is given and the conversion right provided for in paragraph 1.2 has not come into effect, the transfer agent shall either forthwith upon receipt of the notice or forthwith after the seventh day following the Offer Date, whichever is
later, determine the number of shares of any of the classes of shares that are the subject of the Exclusionary Offer in respect of which there are subsisting certificates that comply with either clause 1.5(a) or 1.5(b). For the purpose of this
determination, certificates in respect of which such a notice has been filed shall not be regarded as subsisting insofar as the shares to which the notice relates are concerned; the transfer that is the subject of any notice referred to in sub-clause 1.5(a)(iv) or 1.5(b)(iv) shall be deemed to have already taken place at the time of the determination; and the transferee in the case of any notice referred to in
sub-clause 1.5(a)(iv) or 1.5(b)(iv) shall be deemed to be a person or company from whom the transfer agent does not have a subsisting certificate unless the transfer agent is advised of the identity of the
transferee, either by such notice or by the transferee in writing, and such transferee is a person or company from whom the transfer agent has a subsisting certificate. If the aggregate number of shares of the class or classes that are the subject
of the Exclusionary Offer so determined does not exceed 50% of the aggregate of the number of then outstanding shares of the class or classes that are the subject of the Exclusionary Offer, exclusive of shares owned immediately prior to the offer by
the Offeror, paragraph 1.5 shall cease to apply and the conversion right provided for in paragraph 1.2 shall be in effect for the remainder of the Conversion Period. 

 

	1.7	 As soon as reasonably possible after the seventh day after the Offer Date, the Corporation shall send to each
holder of Subordinate Voting Shares a notice advising the holders as to whether they are entitled to convert their Subordinate Voting Shares into Multiple Voting Shares and the reasons therefor. If such notice discloses that they are not so entitled
but it is subsequently determined that they are so entitled by virtue of paragraph 1.6 or otherwise, the Corporation shall forthwith send another notice to them advising them of that fact and the reasons therefor. 

					
	 PROMETIC LIFE SCIENCES INC.

Restated Articles of Incorporation
	 	- 6 -	 	

  

	1.8	 If a notice referred to in paragraph 1.7 discloses that the conversion right has come into effect, the notice
shall: 

  

	 	(a)	 include a description of the procedure to be followed to effect the conversion and to have the Converted Shares
tendered under the offer; 

  

	 	(b)	 include the information set out in paragraph 1.3 hereof; and 

 

	 	(c)	 be accompanied by a copy of the offer and all other material sent to holders of the shares that are the subject
of the Exclusionary Offer in respect of the offer, and as soon as reasonably possible after any additional material, including a notice of variation, is sent to the holders of the shares that are the subject of the Exclusionary Offer in respect of
the offer, the Corporation shall send a copy of such additional material to each holder of Subordinate Voting Shares. 

  

	1.9	 Prior to or forthwith after sending any notice referred to in paragraph 1.7, the Corporation shall cause a
press release to be issued to a Canadian national news-wire service, describing the contents of the notice. 

			
	 

	 	 Industry
Canada                                        
            Industrie Canada

  

			
	Certificate of Amendment	  	Certificat de Modification
		
	 Canada Business
 Corporations
Act
	  	 Loi canadienne sur
 les
sociètès par actions

  

					
	PROMETIC LIFE SCIENCES INC./	 		 	
			
	PROMETIC SCIENCES DE LA VIE INC.	 		 	 307730-6

			
	                                     
                                         
  	 		 	                                     
                                         

	Name of Corporation-Denomination de la société	 		 	Corporation number-Numéro de la société
			
	I hereby certify that the articles of the above-named corporation were amended:	 		 	Je certifie que les statuts de la société susmentionnée ont été modifiés:
			
	 a)  under section 13 of the Canada Business Corporations Act in
accordance with the attached notice;
	 	☐	 	 a)  en vertu de l’article 13 de la Loi canadienne sur les
sociétés par actions, conformément à l’avis ci-joint;

			
	 b)  under section 27 of the Canada Business Corporations Act as set out
in the attached articles of amendment designating a series of shares;
	 	☒	 	 b)  en vertu de l’article 27 de la Loi canadienne sur les
sociétés par actions, tel qu’il est indiqué dans les clauses modificatrices ci-jointes désignant une série d’actions;

			
	 c)  under section 179 of the Canada Business Corporations Act as set out
in the attached articles of amendment;
	 	☐	 	 c)  en vertu de l’article 179 de la Loi canadienne sur les
sociétés par actions, tel qu’il est indiqué dans les clauses modificatrices ci-jointes;

			
	 d)  under section 191 of the Canada Business Corporations Act as set out
in the attached articles of reorganization;
	 	☐	 	 d)  en vertu de l’article 191 de la Loi canadienne sur les
sociétés par actions, tel qu’il est indiqué dans les clauses de réorganisation ci-jointes;

			
	 

	 		 	February 16, 2000 / le 16 février 2000
			
	 Director - Directeur
	 		 	Date of Amendment - Date de modification

 
  
 

 

									
	 

	 	 Industry Canada
  

Canada Business
 Corporations Act
	  	 Industrie Canada
  

Loi canadienne sur

les sociétés par actions
	  	 FORM 4

ARTICLES OF AMENDMENT

(SECTION 27 OR 177)
	  	 FORMULE 4

CLAUSES MODIFICATRICES (ARTICLES 27 OU 177)

  

			
	 1 - Name of corporation - Dénomination de la
société
  
 PROMETIC LIFE SCIENCES INC./

PROMETIC SCIENCES DE LA VIE INC.
	  	 2 - Corporation No. - N° de la société

 
 3077306

		
	3 - The articles of the above-named corporation are amended as follows:	  	Les statuts de la société mentionnée ci-dessus sont modifiés de la facon suivante:
		
	By creating the first 2 series of Preferred Shares forming part of the authorized share capital of the Corporation, consisting of a maximum of 1,050,000 shares designated as “Preferred Shares Series A” and a maximum of
950,000 shares designated as “Preferred Shares Series B”. In addition to the preferences, rights, privileges, conditions and restrictions attached to all Preferred Shares as a class, the preferences, rights, privileges, conditions and
restrictions attached to the Preferred Shares Series A and Preferred Shares Series B are described in Schedule A attached hereto forming an integral part of these Articles of Amendment.	  	

  
 

 
 IC 3069 (2/96)
  

 

 SCHEDULE “A” 

The Preferred Shares Series A shall, in addition to the rights, privileges, restrictions and conditions attaching to the Preferred Shares as
a class (collectively, the “Preferred Shares Class Provisions”) carry and be subject to the following rights, privileges, restrictions and conditions (collectively, the “Preferred Shares Series
A Provisions”): 
  

	1.	 INTERPRETATION 

 

	1.1	 Defined Terms 

The following words and phrases whenever used in the Preferred Shares Series A Provisions shall have the following meanings, unless there be
something in the context otherwise inconsistent therewith: 
  

	 	(a)	 “Business Day” shall mean a day other than a Saturday, a Sunday or any other day that is
treated as a holiday in the municipality where the Corporation’s registered office in Canada is situated; 

  

	 	(b)	 “Conversion Basis” at any time shall mean the number of Subordinate Voting Shares of the
Corporation into which at such time 1 Preferred Share Series A shall be convertible in accordance with the provisions of Article 4 of these Preferred Shares Series A Provisions; 

 

	 	(c)	 “Conversion Price” shall mean $0.50; 

 

	 	(d)	 “Dividend Payment Date” shall mean the
1st days of January, April, July and October in each calendar year; 

  

	 	(e)	 “Dividend Rate” shall mean 12% per year, calculated monthly; 

 

	 	(f)	 “Dividend Reinvestment and Stock Purchase Plans” shall mean any plan or plans in effect from
time to time pursuant to which, among other things, the holders of the Corporation’s outstanding Subordinate Voting Shares may: 

  

	 	(i)	 purchase with reinvested dividends at not less than 75% of a specified average market price, additional
Subordinate Voting Shares to be issued from treasury; 

  

	 	(ii)	 make optional payments to be applied to the purchase of Subordinate Voting Shares to be issued from treasury at
100% of a specified average market price of Subordinate Voting Shares; or 

  

	 	(iii)	 receive additional Subordinate Voting Shares as stock dividends by electing to receive dividends in Subordinate
Voting Shares in lieu of ordinary cash dividends being based on not less than 75% of a specified average market price of Subordinate Voting Shares, 

or any analogous plan or plans; 

 - 2 - 
  

	 	(g)	 “Equivalent Conversion Price” at any time shall mean the quotient obtained by dividing the sum
of $1.00 by the Conversion Basis in effect at such time; 

  

	 	(h)	 “Holder’s Conversion Option Period” shall have the meaning attributed to it by paragraph
4.2.2.1; 

  

	 	(i)	 “Market Price” of the Subordinate Voting Shares at any date shall mean the weighted average
trading prices per share of the Subordinate Voting Shares on The Toronto Stock Exchange (or, if the Subordinate Voting Shares are not listed on The Toronto Stock Exchange, on such stock exchange on which such shares are listed as may be selected for
that purpose by the directors) during the 20 most recent trading days on which there have been trades immediately prior to such date; provided that if the Subordinate Voting Shares are not listed on any stock exchange, the market price of the
Subordinate Voting Shares shall be determined by the directors, which determination shall be conclusive; 

  

	 	(j)	 “Multiple Voting Shares” shall mean Multiple Voting Shares of the Corporation, as such shares
were constituted on January 31, 2000 and shares of any other class resulting from any reclassification or change of such shares; 

  

	 	(k)	 “Notice of the Corporation” shall have the meaning attributed to it by paragraph 4.2.1;

  

	 	(l)	 “Notice of the Trustee” shall have the meaning attributed to it by paragraph 4.2.2;

  

	 	(m)	 “Subordinate Voting Shares” shall mean Subordinate Voting Shares of the Corporation as such
shares were constituted on January 31, 2000 and shares of any other class resulting from any reclassification or change of such shares; and 

  

	 	(n)	 “Trust Funds” shall have the meaning attributed to it by paragraph 4.2.1.

  

	1.2	 Reference to Statutes 

Any reference in the Preferred Shares Series A Provisions to any statute shall be deemed to be a reference to such statute as amended or re-enacted from time to time. 
  

	1.3	 Canadian Funds 

All amounts payable pursuant hereto shall be payable in lawful money of Canada. 

 

	1.4	 Non-Business Day 

If any day on which any dividend on the Preferred Shares Series A is payable or by which any other action is required to be taken hereunder is
not a Business Day, then such dividend shall be payable or such other action shall be required to be taken on the next succeeding day that is a Business Day. 

  
 - 3 - 

	1.5	 Herein, hereto, etc. 

The words “herein”, “hereto”, “hereof and similar words refer, unless the context clearly indicates the contrary, to
the whole of the Preferred Shares Series A Provisions and not to any particular Article, subsection or paragraph thereof. 
  

	1.6	 Number and Gender 

Words importing the singular number only shall include the plural and vice-versa, words importing the use of any gender shall include all
genders and words importing persons shall include firms and corporations and vice versa. 
  

	2.	 DIVIDENDS 

  

	2.1	 Payment of Dividends 

The holders of Preferred Shares Series A shall be entitled to receive, and the Corporation shall pay thereon, as and when declared by the board
of directors out of moneys properly applicable to the payment of dividends, cumulative preferential cash dividends (in priority to the Multiple Voting Shares, the Subordinate Voting Shares and any other shares ranking junior to the Preferred Shares
Series A) in the amounts determined from time to time in accordance with the provisions hereof. Such dividends on the Preferred Shares Series A shall accrue on a
day-to-day basis from and including the date of issue thereof and shall be payable on each Dividend Payment Date to the holders of record at the close of business on the
third (3rd) Business Day immediately preceding such Dividend Payment Date by cheques drawn on a Canadian chartered bank and payable at par at any branch in Canada of such bank and the delivery of
such cheques shall satisfy and discharge all liability for such dividends to the extent of the sums represented thereby, unless such cheques are not paid on due presentation. If on any Dividend Payment Date dividends payable on such date are not
paid in full on all the Preferred Shares Series A then issued and outstanding, such dividends or the unpaid part thereof shall be paid on a subsequent date or dates determined by the directors on which the Corporation shall have sufficient moneys
properly applicable, under the provisions of any applicable law. The holders of the Preferred Shares Series A shall not be entitled to any dividends other than or in excess of the dividends provided for in this Article 2. 

 

	2.2	 Amount of Dividends 

  

	2.2.1	 Subject as hereinafter provided, the amount of the dividend payable on any Dividend Payment Date on any
Preferred Share Series A then outstanding shall be equal to the amount (rounded to the nearest $0.01) calculated by applying the relevant Dividend Rate for the dividend period ending on the day immediately preceding such Dividend Payment Date to the
sum of $1.00. 

  

	2.2.2	 The dividend payable on any Dividend Payment Date or any other date as herein provided to any holder of
Preferred Shares Series A shall be calculated by multiplying the amount of the dividend payable on such date on each such share by the total number of Preferred Shares Series A held by such holder and rounding to the nearest $0.01.

  

	2.2.3	 For the purposes of calculating the amount of the dividend payable on April 1, 2000, the Dividend Rate for
the dividend period ending on April 1, 2000 shall be the Dividend 

 - 4 - 
  

	 	
Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in such dividend period and the denominator of which is number of days in the stub
quarter. 

  

	2.2.4	 For the purposes of calculating the amount of the dividend payable on any day other than a Dividend Payment
Date, the period beginning on the immediately preceding Dividend Payment Date (or, prior to the first regular Dividend Payment Date, the date of issue of the Preferred Shares Series A) and ending on the day immediately preceding the date of such
dividend payment shall be deemed to be a dividend period and the Dividend Rate for such deemed dividend period shall be the Dividend Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in
such deemed dividend period and the denominator of which is the number of days in the stub quarter in which such deemed dividend period is included. 

  

	3.	 PURCHASE FOR CANCELLATION 

3.1     The Corporation may, subject to the provisions of the Canada Business Corporations Act, purchase Preferred Shares Series A
at the best possible price obtainable in the open market and upon such terms and conditions as may be freely negotiated with shareholders from time to time. Any Preferred Shares Series A so repurchased shall be cancelled. 

 

	4.	 CONVERSION AND REDEMPTION PRIVILEGE 

 

	4.1	 Conversion at Option of Holder 

 

	4.1.1	 A holder of Preferred Shares Series A may choose at any time to demand the conversion of all but not less than
all amounts paid up with respect to the Preferred Shares Series A by converting the entire amount paid up on such shares held by such holder, plus, at the holder’s option, all or a portion of the unpaid dividends accumulated thereon, if any,
into fully paid and non-assessable Subordinate Voting Shares of the Corporation, on a conversion basis established (i) in respect of the amounts paid up with respect to the Preferred Shares, by dividing
the amount paid up on such shares by the Conversion Price and (ii) in respect of the unpaid dividends accumulated thereon, by dividing the amount of unpaid dividends accumulated in respect of which a holder made an election to convert for the
then outstanding Preferred Shares Series A to be converted by the Market Price, as of the Dividend Payment Date of the dividend payment period during which each such unpaid dividend amount became due. 

 

	4.1.2	 The conversion right provided for in paragraph 4.1.1 may be exercised by the holder of Preferred Shares Series
A by sending to the Corporation’s transfer agent, at its principal place of business in the cities of Montreal or Toronto, the Preferred Shares Series A certificate to be converted and a notice of the exercise of the conversion right, which
notice shall have been duly signed by the holder of Preferred Shares Series A certificate and shall specify (i) the number of Preferred Shares Series A being converted; (ii) the value of the amounts paid up in respect thereon;
(iii) the value of dividends accumulated and unpaid being converted if any; and (iv) the directions for registration and delivery of the Subordinate Voting Shares to be issued (failing which the transfer agent of the Corporation shall use
the holder’s last known name and address in its registers). If applicable, the holder of Preferred Shares Series A shall provide, together with the aforementioned items, any transfer tax or other tax which may be exigible with respect to such
conversion if the Subordinate Voting Shares 

 - 5 - 
  

	 	
resulting from the conversion are to be issued to persons other than the holder of the converted Preferred Shares Series A. A surrender to the Corporation’s transfer agent, made by the
holder of Preferred Shares Series A to be converted, in accordance with this subsection 4.1 and including the duly completed and signed conversion notice shall be deemed to constitute a contract between the holder of Preferred Shares Series A and
the Corporation pursuant whereto (i) the holder of Preferred Shares Series A subscribes for the number of Subordinate Voting Shares the holder of Preferred Shares Series A is entitled to receive pursuant to the conversion, (ii) the holder
of Preferred Shares Series A releases the Corporation from any liability with respect to the converted Preferred Shares Series A, and (iii) the Corporation agrees that such surrender of the Preferred Shares Series A for conversion constitutes
payment in full of the subscription price for the Subordinate Voting Shares to be issued upon the conversion, the whole with effect as of the date of the conversion at the holder’s option as provided hereby. 

 

	4.1.3	 As soon as possible after the notice of conversion is received by the Corporation, it shall issue and deliver
or cause to be issued and delivered to holders of Preferred Shares Series A certificates so surrendered for conversion, or to their written order, one or more certificates registered in the name of the person or persons indicated in the conversion
notice, which certificate(s) shall represent the number of Subordinate Voting Shares resulting from the conversion of the Preferred Shares Series A surrendered for such purpose. The conversion into Subordinate Voting Shares shall be deemed to have
been made immediately prior to the close of business on the date of receipt by the Corporation of the conversion notice and, as of that moment, (i) the rights of the holder of converted Preferred Shares Series A, in such capacity, shall cease
to exist, (ii) the person or persons in whose name one or more certificates representing the Subordinate Voting Shares must be registered and delivered following the conversion shall be deemed to have become registered holders of the
Subordinate Voting Shares represented by the certificate(s) and (iii) any unpaid dividends not converted shall be paid to such holder in full and in cash by the Corporation forthwith. However, if the Corporation’s transfer books for the
said Subordinate Voting Shares are closed on such date, the Corporation shall not be obligated to issue or cause to be issued any Subordinate Voting Shares until the date on which such transfer books are
re-opened, and the holder of Preferred Shares Series A having effected the conversion shall not be deemed to have become the holder of the Subordinate Voting Shares to which the conversion entitles him as long
as the said transfer books shall not have been re-opened. 

  

	4.2	 Redemption Offer by Corporation 

 

	4.2.1	 The Corporation may choose at any time after February 28, 2003, upon the giving to the Corporation’s
transfer agent of a notice as hereinafter provided for, to offer to redeem all or part of the then outstanding Preferred Shares Series A, plus all unpaid dividends accumulated thereon. The notice of the Corporation to its transfer agent (the
“Notice of the Corporation”) shall set forth (i) the date of redemption (which shall not be a date which occurs less than sixty (60) Business Days and no more than ninety (90) Business Days after the date of the
giving of the Notice of the Corporation); (ii) the number of Preferred Shares Series A plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that the holders of Preferred Shares Series A have
a choice to either accept the redemption for cash 

 - 6 - 
  

	 	
from the Corporation or elect to convert, with respect to the corresponding amounts, the Preferred Shares Series A and all or, at the holder’s option, part of the dividends accumulated
thereon, into Subordinate Voting Shares; (iv) the fact that holders of Preferred Shares Series A have twenty (20) Business Days from the date of giving of the Notice of the Trustee as described below to make their choice and (v) the
fact that if the Preferred Share Series A certificates are not surrendered to the Corporation’s transfer agent, together with a duly completed notice for the exercise of the conversion right completed as provided for by paragraph 4.1.2 hereof,
by the expiry of such twentieth (20th) Business Day, such holder shall be deemed to have chosen payment in cash. The Notice of the Corporation shall be accompanied by the tender by the
Corporation, to its transfer agent, in trust, of the amounts required to effect payment for the redemption of the number of Preferred Shares Series A stated in the Notice of the Corporation, plus unpaid dividends accumulated thereon (the
“Trust Funds”). 

  

	4.2.2	 As soon as possible after the receipt of the Notice of the Corporation and of the Trust Funds, the
Corporation’s transfer agent shall deliver to holders of Preferred Shares Series A a notice (a “Notice of the Trustee”), which notice shall set forth (i) the date of redemption stated in the Notice of the Corporation;
(ii) the number of Preferred Shares Series A plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that holders of Preferred Shares Series A have a choice to either accept redemption for
cash from the Corporation or elect to convert, with respect to the corresponding amounts, the Preferred Shares Series A and all or, at the holder’s option, part of the dividends accumulated thereon, into Subordinate Voting Shares; (iv) the
fact that holders of Preferred Shares Series A have twenty (20) Business Days from the date of giving of the Notice of the Trustee to make their choice; (v) the fact that if a Preferred Share Series A is not surrendered to the
Corporation’s transfer agent, together with a duly completed form for the exercise of the conversion right, by the expiry of such delay, such holder shall be deemed to have chosen redemption for cash and (vi) that upon such surrender of
the Preferred Shares Series A for conversion such a holder of Preferred Shares Series A has the right to obtain the certificates representing the Subordinate Voting Shares resulting from the conversion or the cash, as applicable. Upon reception of
the Notice of the Trustee, a holder of Preferred Shares Series A shall then have the option: 

4.2.2.1    to refuse the Corporation’s cash redemption offer, in which case such holder must surrender for conversion
the corresponding number of Preferred Shares Series A held by him, by sending to the Trustee, at its principal place of business in the cities of Montreal or Toronto, within twenty (20) Business Days of the giving of the Notice of the Trustee
(the “Holders Conversion Option Period”) the Preferred Shares Series A, surrendered for conversion together with a notice of exercise of the conversion right, completed as provided for by paragraph 4.1.2 hereof which notice shall
have been duly signed and completed by the Holder of Preferred Shares Series A; or 
 4.2.2.2    to accept the
Corporation’s cash redemption offer, in which case no further actions or steps are required of such holder in order to indicate his choice. 
  

	4.2.3	 If a holder of Preferred Shares Series A has not surrendered for conversion the Preferred Shares Series A held
by him pursuant to the provisions of paragraph 4.2.2.1 above within the Holder’s Conversion Option Period, such holder shall be deemed not to have exercised the option referred to in paragraph 4.2.2.1 and shall thereafter be deemed to have
exercised the option referred to in paragraph 4.2.2.2. 

  

 - 7 - 
  

	4.2.4	 If a holder of Preferred Shares Series A has exercised the option provided in paragraph 4.2.2.1, the
Corporation’s transfer agent shall, within ten (10) Business Days following the Holder’s Conversion Option Period, upon receipt of the holder’s Preferred Shares Series A certificates tendered by such holder together with a notice
of conversion completed in the same manner as set out in paragraph 4.1.2 above, deliver to the holders of Preferred Shares Series A certificates so surrendered for conversion, or to their written order, one or more certificates registered in the
name of the person or persons indicated by such holders of Preferred Shares Series A, which certificate(s) shall represent such number of Subordinate Voting Shares resulting from the conversion of the Preferred Shares Series A as is obtained
(i) in respect of the amounts paid up with respect to the Preferred Shares Series A by dividing the number of Preferred Shares Series A being converted by the Conversion Price and (ii) in respect of the unpaid dividends accumulated thereon
by dividing the amount of unpaid dividends accumulated on the Preferred Shares Series A being converted by the Market Price as of the Dividend Payment Date of the dividend payment period during which each such unpaid dividend amount became due. If
only a portion of the amount paid up or unpaid dividends on the Preferred Shares Series A certificates surrendered for conversion is to be converted, the holders of such Preferred Shares Series A shall be entitled to receive, at no cost,
concurrently with the surrender of any Preferred Share Series A certificates of which only a portion has been converted, one or more Preferred Shares Series A certificates representing the amount paid up thereon and a cash payment representing the
unpaid dividends accumulated in respect of the surrendered Preferred Shares Series A. The conversion into Subordinate Voting Shares shall be deemed to have been made immediately prior to the close of business on the date of conversion and, as of
that moment, (i) the rights (except as regards any part of the Preferred Shares Series A which has not been converted) of the holders of converted Preferred Shares Series A, in such capacity, shall cease to exist up to the value of the paid up
capital so converted and unpaid dividends thereon, and (ii) the person or persons in whose name one or more certificates representing the Subordinate Voting Shares must be registered and delivered following the conversion shall be deemed to
have become a registered holder or registered holders of the Subordinate Voting Shares represented by the certificate(s). However, if the Corporation’s transfer books for the said Subordinate Voting Shares are closed on the date of conversion,
the Corporation shall not be obligated to issue or cause to be issued any Subordinate Voting Shares until the date on which such transfer books are re-opened, and the holder of Preferred Shares Series A having
effected the conversion shall not be deemed to have become the holder of the Subordinate Voting Shares to which the conversion entitles him as long as the said transfer books shall not have been re-opened.

  

	4.2.5	 If a holder of Preferred Shares Series A has exercised the option provided by paragraph 4.2.2.2, the Trustee
shall, within ten (10) Business Days following the Holder’s Conversion Option Period, send to such holder of Preferred Shares Series A a notice which shall set forth (i) that the holder is deemed to have accepted the
Corporation’s offer of redemption for cash; (ii) the amount paid up in respect of outstanding Preferred Shares Series A (including unpaid dividends accumulated thereon) which is thus redeemed, (iii) the fact that such holder has the
right to receive 

 - 8 - 
  

	 	
a certified cheque, bank draft or money order for such amounts from the Trust Funds of the Corporation’s transfer agent and (iv) that in order to receive payment of the amounts to be
repaid by the Corporation, the holder of Preferred Shares Series A must surrender for cancellation his Preferred Share Series A certificate(s) at the principal offices of the Corporation’s transfer agent in the cities of Montreal or Toronto.
Upon receipt of the Preferred Shares Series A certificates from such holders, the Corporation’s transfer agent shall deliver to the holders of Preferred Shares Series A certificates so surrendered for cancellation, or to their written order,
from the Trust Funds, certified cheques, bank drafts or money orders made out in the respective names of the holders of Preferred Shares Series A or in the name of the person or persons indicated by the holder of Preferred Shares Series A. If only a
portion of the amount paid up or unpaid dividends on the Preferred Shares Series A certificates surrendered for cancellation is to be redeemed, the holders of such Preferred Shares Series A shall be entitled to receive, at no cost, concurrently with
the surrender of the Preferred Shares Series A certificates of which only a portion is to be redeemed, one or more Preferred Shares Series A certificates representing the amount of the surrendered Preferred Shares Series A certificates which has not
been redeemed. The redemption of Preferred Shares Series A certificates shall be deemed to be made immediately prior to the close of business on the date of redemption and as of that moment, the rights (except as regards any part of Preferred Shares
Series A not repaid or unpaid dividends) of the holders of cancelled Preferred Shares Series A, in such capacity, shall cease to exist up to the value of the paid up capital and any dividends thereon so repaid. 

 

	4.3	 Effect of Conversion of Preferred Shares Series A 

 

	4.3.1	 If the Preferred Shares Series A are duly converted in accordance with the provisions hereof, the Subordinate
Voting Shares subscribed for shall be issued as fully paid and non-assessable Subordinate Voting Shares and the person to whom such Subordinate Voting Shares are issued shall become the holder of record of
such Subordinate Voting Shares on the date of conversion unless the transfer registers of the Trustee for the Subordinate Voting Shares shall be closed on such date, in which case the Subordinate Voting Shares subscribed for shall be deemed to have
been issued and such person shall be deemed to have become the holder of record of such Subordinate Voting Shares on the date on which such transfer registers are reopened. 

 

	4.3.2	 If any fractional interests in a Subordinate Voting Share would, except for the provisions of this paragraph
4.3.2, be deliverable to a holder of Preferred Shares Series A upon his conversion of Preferred Shares Series A after adding the sum of the Subordinate Voting Shares to which such holder of Preferred Shares Series A would be entitled upon such
exercise, the Corporation shall make a cash payment equal to the Market Price of the fraction of the Subordinate Voting Share not so issued. 

  

	4.4	 Cancellation of Surrendered Preferred Shares Series A Certificates 

All Preferred Shares Series A certificates surrendered to the Corporation’s transfer agent for redemption or conversion shall be cancelled
by the transfer agent. The transfer agent shall, if required by the Corporation, furnish the Corporation with a certificate identifying the Preferred Shares Series A certificates so cancelled and the number of Subordinate Voting Shares which could
have been or were acquired pursuant to each cancelled Preferred Shares Series A certificate deemed to have been cancelled. 

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	4.5	 Entitlement to Dividends 

A holder of Preferred Shares Series A on the record date for any dividend declared payable on such share on the Dividend Payment Date will be
entitled to such dividend notwithstanding that such share is converted after such record date and before the payment date of such dividend, and the registered holder of any Subordinate Voting Share resulting from any conversion shall be entitled to
rank equally with the registered holders of all other Subordinate Voting Shares in respect of all dividends declared payable to holders of Subordinate Voting Shares of record on any date after the date of conversion. Subject as aforesaid, no payment
or adjustment will be made on account of any dividend, accrued or otherwise, on the Preferred Shares Series A converted or the Subordinate Voting Shares resulting from any conversion. 

 

	5.	 RESTRICTIONS ON PAYMENT OF DIVIDENDS AND RETIREMENT OF SHARES 

5.1    So long as any of the Preferred Shares Series A are outstanding, the Corporation shall not, without the prior sanction of the
holders thereof given in the same manner as specified for the amendment of the Preferred Shares Class Provisions: 
  

	 	(a)	 declare or pay or set apart for payment any dividends (other than share dividends in shares ranking junior to
the Preferred Shares Series A) on the Subordinate Voting Shares, the Multiple Voting Shares or any other shares of the Corporation ranking junior to the Preferred Shares Series A with respect to payment of dividends, or 

 

	 	(b)	 call for redemption, purchase, acquire for value or reduce any shares of the Corporation ranking junior to the
Preferred Shares Series A with respect to repayment of capital or with respect to payment of dividends, 

 unless all dividends up to and
including the dividend payable on the last preceding Dividend Payment Date on all Preferred Shares Series A and other preferred shares ranking on a parity with the said shares with respect to payment of dividends then outstanding, shall have been
declared and paid or made available for payment at the date of any such action referred to in the foregoing paragraphs (a) and (b) and unless there shall remain, after the conclusion of any such action referred to in the foregoing paragraphs
(a) and (b), sufficient funds for the redemption of all then issued and outstanding Preferred Shares Series A. 
  

	6.	 CREATION OR ISSUE OF ADDITIONAL PREFERRED SHARES 

6.1    At any time when any of the Preferred Shares Series A are outstanding, the Corporation shall not, without the prior sanction of the
holders of 662/3% of the Preferred Shares Series A given as specified in the Preferred Shares Class Provisions, create, issue or sell any other shares ranking prior to the Preferred Shares
Series A with respect to the payment of dividends or repayment of capital. 

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	7.	 AMENDMENTS 

7.1    The provisions of sections 1 to 7, inclusive, of the Preferred Shares Series A Provisions may be repealed, altered, modified,
amended or amplified only with the sanction of the holders of the Preferred Shares Series A given as specified in the Preferred Shares Class Provisions, in addition to any other approval required by the Canada Business Corporations Act.

  
 (551856.5) 

 The Preferred Shares Series B shall, in addition to the rights, privileges, restrictions and
conditions attaching to the Preferred Shares as a class (collectively, the “Preferred Shares Class Provisions”) carry and be subject to the following rights, privileges, restrictions and conditions (collectively, the
“Preferred Shares Series B Provisions”): 
  

	1.	 INTERPRETATION 

 

	1.1	 Defined Terms 

The following words and phrases whenever used in the Preferred Shares Series B Provisions shall have the following meanings, unless there be
something in the context otherwise inconsistent therewith: 
  

	 	(a)	 “Business Day” shall mean a day other than a Saturday, a Sunday or any other day that is
treated as a holiday in the municipality where the Corporation’s registered office in Canada is situated; 

  

	 	(b)	 “Conversion Basis” at any time shall mean the number of Subordinate Voting Shares of the
Corporation into which at such time 1 Preferred Share Series B shall be convertible in accordance with the provisions of Article 4 of these Preferred Shares Series B Provisions; 

 

	 	(c)	 “Conversion Price” shall mean $0.60; 

 

	 	(d)	 “Dividend Payment Date” shall mean the
1st days of January, April, July and October in each calendar year; 

  

	 	(e)	 “Dividend Rate” shall mean 12% per year, calculated monthly; 

 

	 	(f)	 “Dividend Reinvestment and Stock Purchase Plans” shall mean any plan or plans in effect from
time to time pursuant to which, among other things, the holders of the Corporation’s outstanding Subordinate Voting Shares may: 

  

	 	(i)	 purchase with reinvested dividends at not less than 75% of a specified average market price, additional
Subordinate Voting Shares to be issued from treasury; 

  

	 	(ii)	 make optional payments to be applied to the purchase of Subordinate Voting Shares to be issued from treasury at
100% of a specified average market price of Subordinate Voting Shares; or 

  

	 	(iii)	 receive additional Subordinate Voting Shares as stock dividends by electing to receive dividends in Subordinate
Voting Shares in lieu of ordinary cash dividends being based on not less than 75% of a specified average market price of Subordinate Voting Shares, 

or any analogous plan or plans; 
  

	 	(g)	 “Equivalent Conversion Price” at any time shall mean the quotient obtained by dividing the sum
of $1.00 by the Conversion Basis in effect at such time; 

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	 	(h)	 “Holder’s Conversion Option Period” shall have the meaning attributed to it by paragraph
4.2.2.1; 

  

	 	(i)	 “Market Price” of the Subordinate Voting Shares at any date shall mean the weighted average
trading prices per share of the Subordinate Voting Shares on The Toronto Stock Exchange (or, if the Subordinate Voting Shares are not listed on The Toronto Stock Exchange, on such stock exchange on which such shares are listed as may be selected for
that purpose by the directors) during the 20 most recent trading days on which there have been trades immediately prior to such date; provided that if the Subordinate Voting Shares are not listed on any stock exchange, the market price of the
Subordinate Voting Shares shall be determined by the directors, which determination shall be conclusive; 

  

	 	(j)	 “Multiple Voting Shares” shall mean Multiple Voting Shares of the Corporation, as such shares
were constituted on January 31, 2000 and shares of any other class resulting from any reclassification or change of such shares; 

  

	 	(k)	 “Notice of the Corporation” shall have the meaning attributed to it by paragraph 4.2.1;

  

	 	(l)	 “Notice of the Trustee” shall have the meaning attributed to it by paragraph 4.2.2;

  

	 	(m)	 “Subordinate Voting Shares” shall mean Subordinate Voting Shares of the Corporation as such
shares were constituted on January 31, 2000 and shares of any other class resulting from any reclassification or change of such shares; and 

  

	 	(n)	 “Trust Funds” shall have the meaning attributed to it by paragraph 4.2.1.

  

	1.2	 Reference to Statutes 

Any reference in the Preferred Shares Series B Provisions to any statute shall be deemed to be a reference to such statute as amended or re-enacted from time to time. 
  

	1.3	 Canadian Funds 

All amounts payable pursuant hereto shall be payable in lawful money of Canada. 

 

	1.4	 Non-Business Day 

If any day on which any dividend on the Preferred Shares Series B is payable or by which any other action is required to be taken hereunder is
not a Business Day, then such dividend shall be payable or such other action shall be required to be taken on the next succeeding day that is a Business Day. 
  

	1.5	 Herein, hereto, etc. 

The words “herein”, “hereto”, “hereof” and similar words refer, unless the context clearly indicates the
contrary, to the whole of the Preferred Shares Series B Provisions and not to any particular Article, subsection or paragraph thereof. 

 - 3 - 
  

	1.6	 Number and Gender 

Words importing the singular number only shall include the plural and vice-versa, words importing the use of any gender shall include all
genders and words importing persons shall include firms and corporations and vice versa. 
  

	2.	 DIVIDENDS 

  

	2.1	 Payment of Dividends 

The holders of Preferred Shares Series B shall be entitled to receive, and the Corporation shall pay thereon, as and when declared by the board
of directors out of moneys properly applicable to the payment of dividends, cumulative preferential cash dividends (in priority to the Multiple Voting Shares, the Subordinate Voting Shares and any other shares ranking junior to the Preferred Shares
Series B) in the amounts determined from time to time in accordance with the provisions hereof. Such dividends on the Preferred Shares Series B shall accrue on a
day-to-day basis from and including the date of issue thereof and shall be payable on each Dividend Payment Date to the holders of record at the close of business on the
third (3rd) Business Day immediately preceding such Dividend Payment Date by cheques drawn on a Canadian chartered bank and payable at par at any branch in Canada of such bank and the delivery of
such cheques shall satisfy and discharge all liability for such dividends to the extent of the sums represented thereby, unless such cheques are not paid on due presentation. If on any Dividend Payment Date dividends payable on such date are not
paid in full on all the Preferred Shares Series B then issued and outstanding, such dividends or the unpaid part thereof shall be paid on a subsequent date or dates determined by the directors on which the Corporation shall have sufficient moneys
properly applicable, under the provisions of any applicable law. The holders of the Preferred Shares Series B shall not be entitled to any dividends other than or in excess of the dividends provided for in this Article 2. 

 

	2.2	 Amount of Dividends 

  

	2.2.1	 Subject as hereinafter provided, the amount of the dividend payable on any Dividend Payment Date on any
Preferred Share Series B then outstanding shall be equal to the amount (rounded to the nearest $0.01) calculated by applying the relevant Dividend Rate for the dividend period ending on the day immediately preceding such Dividend Payment Date to the
sum of $1.00. 

  

	2.2.2	 The dividend payable on any Dividend Payment Date or any other date as herein provided to any holder of
Preferred Shares Series B shall be calculated by multiplying the amount of the dividend payable on such date on each such share by the total number of Preferred Shares Series B held by such holder and rounding to the nearest $0.01.

  

	2.2.3	 For the purposes of calculating the amount of the dividend payable on April 1, 2000, the Dividend Rate for
the dividend period ending on April 1, 2000 shall be the Dividend Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in such dividend period and the denominator of which is number of
days in the stub quarter. 

  

	2.2.4	 For the purposes of calculating the amount of the dividend payable on any day other than a Dividend Payment
Date, the period beginning on the immediately preceding 

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Dividend Payment Date (or, prior to the first regular Dividend Payment Date, the date of issue of the Preferred Shares Series B) and ending on the day immediately preceding the date of such
dividend payment shall be deemed to be a dividend period and the Dividend Rate for such deemed dividend period shall be the Dividend Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in
such deemed dividend period and the denominator of which is the number of days in the stub quarter in which such deemed dividend period is included. 

  

	3.	 PURCHASE FOR CANCELLATION 

3.1    The Corporation may, subject to the provisions of the Canada Business Corporations Act, purchase Preferred Shares Series B at
the best possible price obtainable in the open market and upon such terms and conditions as may be freely negotiated with shareholders from time to time. Any Preferred Shares Series B so repurchased shall be cancelled. 

 

	4.	 CONVERSION AND REDEMPTION PRIVILEGE 

 

	4.1	 Conversion at Option of Holder 

 

	4.1.1	 A holder of Preferred Shares Series B may choose at any time to demand the conversion of all but not less than
all amounts paid up with respect to the Preferred Shares Series B by converting the entire amount paid up on such shares held by such holder, plus, at the holder’s option, all or a portion of the unpaid dividends accumulated thereon, if any,
into fully paid and non-assessable Subordinate Voting Shares of the Corporation, on a conversion basis established (i) in respect of the amounts paid up with respect to the Preferred Shares, by dividing
the amount paid up on such shares by the Conversion Price and (ii) in respect of the unpaid dividends accumulated thereon, by dividing the amount of unpaid dividends accumulated in respect of which a holder made an election to convert for the
then outstanding Preferred Shares Series B to be converted by the Market Price, as of the Dividend Payment Date of the dividend payment period during which each such unpaid dividend amount became due. 

 

	4.1.2	 The conversion right provided for in paragraph 4.1.1 may be exercised by the holder of Preferred Shares Series
B by sending to the Corporation’s transfer agent, at its principal place of business in the cities of Montreal or Toronto, the Preferred Shares Series B certificate to be converted and a notice of the exercise of the conversion right, which
notice shall have been duly signed by the holder of Preferred Shares Series B certificate and shall specify (i) the number of Preferred Shares Series B being converted; (ii) the value of the amounts paid up in respect thereon;
(iii) the value of dividends accumulated and unpaid being converted if any; and (iv) the directions for registration and delivery of the Subordinate Voting Shares to be issued (failing which the transfer agent of the Corporation shall use
the holder’s last known name and address in its registers). If applicable, the holder of Preferred Shares Series B shall provide, together with the aforementioned items, any transfer tax or other tax which may be exigible with respect to such
conversion if the Subordinate Voting Shares resulting from the conversion are to be issued to persons other than the holder of the converted Preferred Shares Series B. A surrender to the Corporation’s transfer agent, made by the holder of
Preferred Shares Series B to be converted, in accordance with this subsection 4.1 and including the duly completed and signed conversion notice shall be deemed to constitute a contract between the holder of Preferred Shares Series B and the
Corporation pursuant whereto (i) the holder of Preferred Shares 

 - 5 - 
  

	 	
Series B subscribes for the number of Subordinate Voting Shares the holder of Preferred Shares Series B is entitled to receive pursuant to the conversion, (ii) the holder of Preferred Shares
Series B releases the Corporation from any liability with respect to the converted Preferred Shares Series B, and (iii) the Corporation agrees that such surrender of the Preferred Shares Series B for conversion constitutes payment in full of
the subscription price for the Subordinate Voting Shares to be issued upon the conversion, the whole with effect as of the date of the conversion at the holder’s option as provided hereby. 

 

	4.1.3	 As soon as possible after the notice of conversion is received by the Corporation, it shall issue and deliver
or cause to be issued and delivered to holders of Preferred Shares Series B certificates so surrendered for conversion, or to their written order, one or more certificates registered in the name of the person or persons indicated in the conversion
notice, which certificate(s) shall represent the number of Subordinate Voting Shares resulting from the conversion of the Preferred Shares Series B surrendered for such purpose. The conversion into Subordinate Voting Shares shall be deemed to have
been made immediately prior to the close of business on the date of receipt by the Corporation of the conversion notice and, as of that moment, (i) the rights of the holder of converted Preferred Shares Series B, in such capacity, shall cease
to exist, (ii) the person or persons in whose name one or more certificates representing the Subordinate Voting Shares must be registered and delivered following the conversion shall be deemed to have become registered holders of the
Subordinate Voting Shares represented by the certificate(s) and (iii) any unpaid dividends not converted shall be paid to such holder in full and in cash by the Corporation forthwith. However, if the Corporation’s transfer books for the
said Subordinate Voting Shares are closed on such date, the Corporation shall not be obligated to issue or cause to be issued any Subordinate Voting Shares until the date on which such transfer books are
re-opened, and the holder of Preferred Shares Series B having effected the conversion shall not be deemed to have become the holder of the Subordinate Voting Shares to which the conversion entitles him as long
as the said transfer books shall not have been re-opened. 

  

	4.2	 Redemption Offer by Corporation 

 

	4.2.1	 The Corporation may choose at any time after February 28, 2003, upon the giving to the Corporation’s
transfer agent of a notice as hereinafter provided for, to offer to redeem all or part of the then outstanding Preferred Shares Series B, plus all unpaid dividends accumulated thereon. The notice of the Corporation to its transfer agent (the
“Notice of the Corporation”) shall set forth (i) the date of redemption (which shall not be a date which occurs less than sixty (60) Business Days and no more than ninety (90) Business Days after the date of the
giving of the Notice of the Corporation); (ii) the number of Preferred Shares Series B plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that the holders of Preferred Shares Series B have
a choice to either accept the redemption for cash from the Corporation or elect to convert, with respect to the corresponding amounts, the Preferred Shares Series B and all or, at the holder’s option, part of the dividends accumulated
thereon, into Subordinate Voting Shares; (iv) the fact that holders of Preferred Shares Series B have twenty (20) Business Days from the date of giving of the Notice of the Trustee as described below to make their choice and (v) the
fact that if the Preferred Share Series B certificates are not surrendered to the Corporation’s 

 - 6 - 
  

	 	
transfer agent, together with a duly completed notice for the exercise of the conversion right completed as provided for by paragraph 4.1.2 hereof, by the expiry of such twentieth (20th) Business Day, such holder shall be deemed to have chosen payment in cash. The Notice of the Corporation shall be accompanied by the tender by the Corporation, to its transfer agent, in trust, of
the amounts required to effect payment for the redemption of the number of Preferred Shares Series B stated in the Notice of the Corporation, plus unpaid dividends accumulated thereon (the “Trust Funds”). 

 

	4.2.2	 As soon as possible after the receipt of the Notice of the Corporation and of the Trust Funds, the
Corporation’s transfer agent shall deliver to holders of Preferred Shares Series B a notice (a “Notice of the Trustee”), which notice shall set forth (i) the date of redemption stated in the Notice of the Corporation;
(ii) the number of Preferred Shares Series B plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that holders of Preferred Shares Series B have a choice to either accept redemption for
cash from the Corporation or elect to convert, with respect to the corresponding amounts, the Preferred Shares Series B and all or, at the holder’s option, part of the dividends accumulated thereon, into Subordinate Voting Shares; (iv) the
fact that holders of Preferred Shares Series B have twenty (20) Business Days from the date of giving of the Notice of the Trustee to make their choice; (v) the fact that if a Preferred Share Series B is not surrendered to the
Corporation’s transfer agent, together with a duly completed form for the exercise of the conversion right, by the expiry of such delay, such holder shall be deemed to have chosen redemption for cash and (vi) that upon such surrender of
the Preferred Shares Series B for conversion such a holder of Preferred Shares Series B has the right to obtain the certificates representing the Subordinate Voting Shares resulting from the conversion or the cash, as applicable. Upon reception of
the Notice of the Trustee, a holder of Preferred Shares Series B shall then have the option: 

4.2.2.1    to refuse the Corporation’s cash redemption offer, in which case such holder must surrender for conversion
the corresponding number of Preferred Shares Series B held by him, by sending to the Trustee, at its principal place of business in the cities of Montreal or Toronto, within twenty (20) Business Days of the giving of the Notice of the Trustee
(the “Holders Conversion Option Period”) the Preferred Shares Series B, surrendered for conversion together with a notice of exercise of the conversion right, completed as provided for by paragraph 4.1.2 hereof which notice shall
have been duly signed and completed by the Holder of Preferred Shares Series B; or 
 4.2.2.2    to accept the
Corporation’s cash redemption offer, in which case no further actions or steps are required of such holder in order to indicate his choice. 
  

	4.2.3	 If a holder of Preferred Shares Series B has not surrendered for conversion the Preferred Shares Series B held
by him pursuant to the provisions of paragraph 4.2.2.1 above within the Holder’s Conversion Option Period, such holder shall be deemed not to have exercised the option referred to in paragraph 4.2.2.1 and shall thereafter be deemed to have
exercised the option referred to in paragraph 4.2.2.2. 

  

	4.2.4	 If a holder of Preferred Shares Series B has exercised the option provided in paragraph 4.2.2.1, the
Corporation’s transfer agent shall, within ten (10) Business Days following the Holder’s Conversion Option Period, upon receipt of the holder’s Preferred Shares Series B certificates tendered by such holder together with a notice

 - 7 - 
  

	 	
of conversion completed in the same manner as set out in paragraph 4.1.2 above, deliver to the holders of Preferred Shares Series B certificates so surrendered for conversion, or to their written
order, one or more certificates registered in the name of the person or persons indicated by such holders of Preferred Shares Series B, which certificate(s) shall represent such number of Subordinate Voting Shares resulting from the conversion of
the Preferred Shares Series B as is obtained (i) in respect of the amounts paid up with respect to the Preferred Shares Series B by dividing the number of Preferred Shares Series B being converted by the Conversion Price and (ii) in
respect of the unpaid dividends accumulated thereon by dividing the amount of unpaid dividends accumulated on the Preferred Shares Series B being converted by the Market Price as of the Dividend Payment Date of the dividend payment period during
which each such unpaid dividend amount became due. If only a portion of the amount paid up or unpaid dividends on the Preferred Shares Series B certificates surrendered for conversion is to be converted, the holders of such Preferred Shares Series B
shall be entitled to receive, at no cost, concurrently with the surrender of any Preferred Share Series B certificates of which only a portion has been converted, one or more Preferred Shares Series B certificates representing the amount paid up
thereon and a cash payment representing the unpaid dividends accumulated in respect of the surrendered Preferred Shares Series B. The conversion into Subordinate Voting Shares shall be deemed to have been made immediately prior to the close of
business on the date of conversion and, as of that moment, (i) the rights (except as regards any part of the Preferred Shares Series B which has not been converted) of the holders of converted Preferred Shares Series B, in such capacity, shall
cease to exist up to the value of the paid up capital so converted and unpaid dividends thereon, and (ii) the person or persons in whose name one or more certificates representing the Subordinate Voting Shares must be registered and delivered
following the conversion shall be deemed to have become a registered holder or registered holders of the Subordinate Voting Shares represented by the certificate(s). However, if the Corporation’s transfer books for the said Subordinate Voting
Shares are closed on the date of conversion, the Corporation shall not be obligated to issue or cause to be issued any Subordinate Voting Shares until the date on which such transfer books are re-opened, and
the holder of Preferred Shares Series B having effected the conversion shall not be deemed to have become the holder of the Subordinate Voting Shares to which the conversion entitles him as long as the said transfer books shall not have been re-opened. 

  

	4.2.5	 If a holder of Preferred Shares Series B has exercised the option provided by paragraph 4.2.2.2, the Trustee
shall, within ten (10) Business Days following the Holder’s Conversion Option Period, send to such holder of Preferred Shares Series B a notice which shall set forth (i) that the holder is deemed to have accepted the
Corporation’s offer of redemption for cash; (ii) the amount paid up in respect of outstanding Preferred Shares Series B (including unpaid dividends accumulated thereon) which is thus redeemed, (iii) the fact that such holder has the
right to receive a certified cheque, bank draft or money order for such amounts from the Trust Funds of the Corporation’s transfer agent and (iv) that in order to receive payment of the amounts to be repaid by the Corporation, the holder
of Preferred Shares Series B must surrender for cancellation his Preferred Share Series B certificate(s) at the principal offices of the Corporation’s transfer agent in the cities of Montreal or Toronto. Upon receipt of the Preferred Shares
Series B certificates from such holders, the Corporation’s transfer agent shall deliver to the holders of Preferred Shares Series B 

 - 8 - 
  

	 	
certificates so surrendered for cancellation, or to their written order, from the Trust Funds, certified cheques, bank drafts or money orders made out in the respective names of the holders of
Preferred Shares Series B or in the name of the person or persons indicated by the holder of Preferred Shares Series B. If only a portion of the amount paid up or unpaid dividends on the Preferred Shares Series B certificates surrendered for
cancellation is to be redeemed, the holders of such Preferred Shares Series B shall be entitled to receive, at no cost, concurrently with the surrender of the Preferred Shares Series B certificates of which only a portion is to be redeemed, one or
more Preferred Shares Series B certificates representing the amount of the surrendered Preferred Shares Series B certificates which has not been redeemed. The redemption of Preferred Shares Series B certificates shall be deemed to be made
immediately prior to the close of business on the date of redemption and as of that moment, the rights (except as regards any part of Preferred Shares Series B not repaid or unpaid dividends) of the holders of cancelled Preferred Shares Series B, in
such capacity, shall cease to exist up to the value of the paid up capital and any dividends thereon so repaid. 

  

	4.3	 Effect of Conversion of Preferred Shares Series B 

 

	4.3.1	 If the Preferred Shares Series B are duly converted in accordance with the provisions hereof, the Subordinate
Voting Shares subscribed for shall be issued as fully paid and non-assessable Subordinate Voting Shares and the person to whom such Subordinate Voting Shares are issued shall become the holder of record of
such Subordinate Voting Shares on the date of conversion unless the transfer registers of the Trustee for the Subordinate Voting Shares shall be closed on such date, in which case the Subordinate Voting Shares subscribed for shall be deemed to have
been issued and such person shall be deemed to have become the holder of record of such Subordinate Voting Shares on the date on which such transfer registers are reopened. 

 

	4.3.2	 If any fractional interests in a Subordinate Voting Share would, except for the provisions of this paragraph
4.3.2, be deliverable to a holder of Preferred Shares Series B upon his conversion of Preferred Shares Series B after adding the sum of the Subordinate Voting Shares to which such holder of Preferred Shares Series B would be entitled upon such
exercise, the Corporation shall make a cash payment equal to the Market Price of the fraction of the Subordinate Voting Share not so issued. 

  

	4.4	 Cancellation of Surrendered Preferred Shares Series B Certificates 

All Preferred Shares Series B certificates surrendered to the Corporation’s transfer agent for redemption or conversion shall be cancelled
by the transfer agent. The transfer agent shall, if required by the Corporation, furnish the Corporation with a certificate identifying the Preferred Shares Series B certificates so cancelled and the number of Subordinate Voting Shares which could
have been or were acquired pursuant to each cancelled Preferred Shares Series B certificate deemed to have been cancelled. 
  

	4.5	 Entitlement to Dividends 

A holder of Preferred Shares Series B on the record date for any dividend declared payable on such share on the Dividend Payment Date will be
entitled to such dividend notwithstanding that such share is converted after such record date and before the payment date of such dividend, and the registered holder of any Subordinate Voting Share resulting from

 - 9 - 
  

 
any conversion shall be entitled to rank equally with the registered holders of all other Subordinate Voting Shares in respect of all dividends declared payable to holders of Subordinate Voting
Shares of record on any date after the date of conversion. Subject as aforesaid, no payment or adjustment will be made on account of any dividend, accrued or otherwise, on the Preferred Shares Series B converted or the Subordinate Voting Shares
resulting from any conversion. 
  

	5.	 RESTRICTIONS ON PAYMENT OF DIVIDENDS AND RETIREMENT OF SHARES 

5.1    So long as any of the Preferred Shares Series B are outstanding, the Corporation shall not, without the prior sanction of the
holders thereof given in the same manner as specified for the amendment of the Preferred Shares Class Provisions: 
  

	 	(a)	 declare or pay or set apart for payment any dividends (other than share dividends in shares ranking junior to
the Preferred Shares Series B) on the Subordinate Voting Shares, the Multiple Voting Shares or any other shares of the Corporation ranking junior to the Preferred Shares Series B with respect to payment of dividends, or 

 

	 	(b)	 call for redemption, purchase, acquire for value or reduce any shares of the Corporation ranking junior to the
Preferred Shares Series B with respect to repayment of capital or with respect to payment of dividends, 

 unless all dividends up to and
including the dividend payable on the last preceding Dividend Payment Date on all Preferred Shares Series B and other preferred shares ranking on a parity with the said shares with respect to payment of dividends then outstanding, shall have been
declared and paid or made available for payment at the date of any such action referred to in the foregoing paragraphs (a) and (b) and unless there shall remain, after the conclusion of any such action referred to in the foregoing paragraphs
(a) and (b), sufficient funds for the redemption of all then issued and outstanding Preferred Shares Series B. 
  

	6.	 CREATION OR ISSUE OF ADDITIONAL PREFERRED SHARES 

6.1    At any time when any of the Preferred Shares Series B are outstanding, the Corporation shall not, without the prior sanction of the
holders of 662/3% of the Preferred Shares Series B given as specified in the Preferred Shares Class Provisions, create, issue or sell any other shares ranking prior to the Preferred Shares
Series B with respect to the payment of dividends or repayment of capital. 
  

	7.	 AMENDMENTS 

7.1    The provisions of sections 1 to 7, inclusive, of the Preferred Shares Series B Provisions may be repealed, altered, modified,
amended or amplified only with the sanction of the holders of the Preferred Shares Series B given as specified in the Preferred Shares Class Provisions, in addition to any other approval required by the Canada Business Corporations Act.

  
 (567096.2) 

									
	 

	 	  
   Industry Canada 

 
	 	Industrie Canada	  	
					
		 	 Certificate of Amendment
  

Canada Business Corporations Act
	 		  	 Certificat de modification
  

Loi canadienne sur les sociétés par actions
	  	

  

							
	PROMETIC LIFE SCIENCES INC./	 	 	 	 	 	 
	 			 
	PROMETIC SCIENCES DE LA VIE INC.	 		 	307730-6	 	 
	 			 
	  
	 		 	  
	 	 
	Name of Corporation-Denomination de la société	 		 	Corporation number-Numéro de la société	 	 
	 			 
	I hereby certify that the articles of the above-named corporation were amended:	 		 	Je certifie que les statuts de la société susmentionnée ont été modifies:	 	 
	 			 
	 a)  under section 13 of the
Canada Business Corporations Act in accordance with the attached notice;
	 	☐	 	 a)  en vertu de l’article 13 de la Loi canadienne sur les sociétés
par actions, conformément à l’avis ci-joint;
	 	 
	 			 
	 b)  under section 27 of the
Canada Business Corporations Act as set out in the attached articles of amendment designating a series of shares;
	 	☐	 	 b)  en vertu de l’article 27 de la Loi canadienne sur les sociétés
par actions, tel qu’il est indiqué dans les clauses modificatrices ci-jointes désignant une série d’actions;
	 	 
	 			 
	 c)  under section 179 of the
Canada Business Corporations Act as set out in the attached articles of amendment;
	 	☒	 	 c)  en vertu de l’article 179 de la Loi canadienne sur les sociétés
par actions, tel qu’il est indiqué dans les clauses modificatrices ci-jointes;
	 	 
	 			 
	 d)  under section 191 of the
Canada Business Corporations Act as set out in the attached articles of reorganization;
	 	☐	 	 d)  en vertu de l’article 191 de la Loi canadienne sur les sociétés
par actions, tel qu’il est indiqué dans les clauses de réorganisation ci-jointes;
	 	 
	 			 
	 

	 		 	May 15, 2008 / le 15 mai 2008	 	 
	 			 
	 Richard G. Shaw

Director - Directeur
	 	 	 	Date of Amendment - Date de modification	 	 

  
 

 

									
	 

	  	 Industry Canada
  
	  	 Industrie Canada
  
	  	ELECTRONIC TRANSACTION REPORT	  	RAPPORT DE LA TRANSACTION ELECTRONIQUE
					
		  	 Canada Business
 Corporations Act
	  	 Loi canadienne sur les
 sociétés
par actions
	  	ARTICLES OF AMENDMENT (SECTIONS 27 OR 177)	  	 CLAUSES MODIFICATRICES (ARTICLES 27 OU 177)

  

					
	Processing Type - Mode de traitement:
            E-Commerce/Commerce-É	  	 
		 	
	1. Name of Corporation - Dénomination de la société	  	2. Corporation No. - N° de la société	  	
		 	
	 PROMETIC LIFE SCIENCES INC./
 PROMETIC SCIENCES
DE LA VIE INC.
	  	307730-6	  	 
	 	 	
	3. The articles of the above-named corporation are amended as follows:	  		  	
		
	Les statuts de la société mentionneé ci-dessus sont modifiés de la facon suivante:	  	

 Schedule 1 (including its Appendix A) to the Restated Articles of Incorporation dated May 19, 1998, and Schedule
“A” to the Articles of Amendment dated February 16, 2000, both containing a description of the share capital of the Corporation are hereby repealed and replaced by the following Schedule 1. 

S C H E D U L E 1 
 TO THE
ARTICLES OF AMENDMENT 
 The Corporation is authorized to issue an unlimited number of Common Shares and an unlimited number of Preferred Shares issuable in
series. The first 2 series of Preferred Shares forming part of the authorized share capital of the Corporation, consist of a maximum of 1,050,000 shares designated as “Preferred Shares Series A” and a maximum of 950,000 shares designated
as “Preferred Shares Series B”. 
 COMMON SHARES: 

The Common Shares shall have the following rights, privileges, restrictions and conditions: 

1.    VOTING RIGHTS 
 The holders of Common
Shares shall be entitled to one (1) vote for each Common Share held by them at all meetings of shareholders. 
 2.    LIQUIDATION,
DISSOLUTION OR OTHER DISTRIBUTION OF ASSETS 
 In the event of the voluntary or involuntary liquidation, dissolution,
winding-up or other distribution of assets of the Corporation, the holders of Common Shares shall be entitled to receive the remaining property of the Corporation, pari passu, to the exclusion of the holders
of shares of any other class. 
 3.    DIVIDENDS 

The holders of Common Shares shall be entitled, pari passu, subject to the other provisions of this Schedule 1, to receive such dividends as may be declared by
the directors of the Corporation from time to time. 
 4.    AMENDMENTS SUBJECT TO CONFIRMATION BY ARTICLES OF AMENDMENT 

Subject to confirmation by articles of amendment and the issue of a Certificate of Amendment, the director or directors of the Corporation may, at any time or
times or from time to time, adopt a resolution or resolutions whereby the terms hereof and of the foregoing paragraphs may be altered, amended or repealed or the application thereof suspended in any particular case and changes made in the rights,
privileges, restrictions and conditions attached to one or more classes of shares of the Corporation, but no such resolution shall have any force or effect until after it has been sanctioned by the vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) in value of the voting shares then outstanding and of at least sixty-six and two-thirds percent (66 2/3%) in value of shares of each class affected by such amendment, in each case voting separately as a class at a meeting or meetings specially called for such purpose. 

 PREFERRED SHARES: 

The Preferred Shares are issuable in series and shall have the following rights, privileges, restrictions and conditions: 

1.    The directors of the Corporation may at any time and from time to time issue the Preferred Shares in one or more series, each series
to consist of such number of shares as may before issuance thereof be determined by the directors. 
 2.    Subject to the provisions of
paragraph 10, the holders of the Preferred Shares shall not, as such, have any voting rights for the election of directors or for any other purpose nor shall they be entitled to attend shareholders’ meetings. 

3.    The directors of the Corporation may (subject as hereinafter provided) from time to time fix before issuance the designation,
rights, restrictions, conditions and limitations to be attached to the Preferred Shares of each series including, without limiting the generality of the foregoing, the rate, amount or method of calculation of preferential dividends, whether or not
cumulative or non-cumulative or partially cumulative, and whether such rate, amount or method of calculation shall be subject to change or adjustment in the future, the currency or currencies of payment, the
date or dates and place or places of payment thereof and the date or dates from which such preferential dividends shall accrue, the redemption price and terms and conditions of redemption, the rights of retraction, if any, vested in the holders of
Preferred Shares of such series, and the prices and the other terms and conditions of any rights of retraction, and whether any additional rights of retraction may be vested in such holders in the future, conversion rights (if any) or other
provisions attached to the Preferred Shares of such series, the whole subject to the issue by the Director, Industry Canada, of a certificate of amendment in respect of articles of amendment in prescribed form to designate a series of shares. 

4.    When any fixed cumulative dividends or amounts payable on a return of capital are not paid in full, the Preferred Shares of all
series shall participate rateably in respect of such dividends including accumulations, if any, in accordance with the sums which would be payable on the Preferred Shares if all such dividends were declared and paid in full, and on any return of
capital in accordance with the sums which would be payable on such return of capital if all sums so payable were paid in full. 

5.    The Preferred Shares shall be entitled to preference over the other classes of shares of the Corporation with respect to the payment
of dividends and may also be given such other preferences over the other classes of shares of the Corporation as may be fixed by the directors of the Corporation as to the respective series authorized to be issued. 

6.    The Preferred Shares of each series shall rank on a parity with the Preferred Shares of every other series with respect to priority
in payment of dividends and in the distribution of assets in the event of liquidation, dissolution or winding-up of the Corporation whether voluntary or involuntary. 

7.    In the event of the liquidation, dissolution or winding-up of the Corporation or other
distribution of assets of the Corporation among shareholders for the purpose of winding-up its affairs, the holders of the Preferred Shares shall, before any amount shall be paid to or any property or assets
of the Corporation distributed among the holders of the other classes of shares of the Corporation, be entitled to receive (i) an amount equal to the amount paid up on such shares, together with, in the case of cumulative dividends, all unpaid
cumulative dividends (which for such purpose shall be calculated as if such cumulative dividends were accruing from day to day for the period from the expiration of the last period for which cumulative dividends have been paid up to and including
the date of distribution) and, in the case of non-cumulative dividends, all declared and unpaid non-cumulative dividends, and (ii) if such liquidation, dissolution,
winding-up or distribution shall be voluntary, an additional amount equal to the premium, if any, which would have been payable on the redemption of the said Preferred Shares, respectively, if they had been
called for redemption by the Corporation on the date of distribution and, if said Preferred Shares could not be redeemed on such date, then an additional amount equal to the greatest premium, if any, which would have been payable on the redemption
of said Preferred Shares, respectively. 
 8.    No dividends shall at any time be declared or paid on or set apart for payment on any
shares of the Corporation ranking junior to the Preferred Shares unless all dividends up to and including the dividend 

 
payable for the last completed period for which such dividends shall be payable on each series of Preferred Shares then issued and outstanding shall have been declared and paid or set apart for
payment at the date of such declaration or payment or setting apart for payment on such shares of the Corporation ranking junior to the Preferred Shares nor, unless any such requirement is waived as part of the conditions, restrictions and
limitations attached to a particular series of Preferred Shares, shall the Corporation call for redemption or redeem or purchase for cancellation or reduce or otherwise pay off any of the Preferred Shares (less than the total amount then
outstanding) or any shares of the Corporation ranking junior to the Preferred Shares unless all dividends up to and including the dividend payable for the last completed period for which such dividends shall be payable on each series of the
Preferred Shares then issued and outstanding shall have been declared and paid or set apart for payment at the date of such call for redemption, purchase, reduction or other payment. 

9.    The Preferred Shares of any series may be purchased for cancellation or made subject to redemption by the Corporation at such times
and at such prices and upon such other terms and conditions as may be specified in the rights, privileges, restrictions and conditions attached to the Preferred Shares of such series as set forth in the resolution of the board of directors of the
Corporation and certificate of amendment relating to such series. 
 10.    The provisions of paragraphs 1 to 9, inclusive, and of this
paragraph 10 may be deleted or varied in whole or in part by a Certificate of Amendment, but only with the prior approval of the holders of the Preferred Shares given as hereinafter specified in addition to any other approval required by the
Canada Business Corporations Act (or any other statutory provision of like or similar effect, from time to time in force). The approval of the holders of the Preferred Shares with respect to any and all matters hereinbefore referred to may be given
by at least 2/3 of the votes cast at a meeting of the holders of the Preferred Shares duly called for that purpose and held upon at least 21 days’ notice at which the holders of a majority of the outstanding Preferred Shares are present or
represented by proxy. If at any such meeting the holders of a majority of the outstanding Preferred Shares are not present or represented by proxy within one-half hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being not less than 30 days later and to such time and place as may be appointed by the chairman and not less than 21 days’ notice shall be given of such adjourned meeting but it shall
not be necessary in such notice to specify the purpose for which the meeting was originally called. At such adjourned meeting the holders of Preferred Shares present or represented by proxy may transact the business for which the meeting was
originally called and a resolution passed thereat by not less than 2/3 of the votes cast at such adjourned meeting shall constitute the authorization of the holders of the Preferred Shares referred to above. The formalities to be observed in respect
of the giving of notice of any such meeting or adjourned meeting and the conduct thereof shall be those from time to time prescribed by the by-laws of the Corporation with respect to meetings of shareholders.
On every poll taken at every such meeting or adjourned meeting every holder of Preferred Shares shall be entitled to one (1) vote in respect of each Preferred Share held. 

PREFERRED SHARES SERIES A 
 The Preferred Shares Series A shall,
in addition to the rights, privileges, restrictions and conditions attached to the Preferred Shares as a class (collectively, the “Preferred Shares Class Provisions”) carry and be subject to the following rights, privileges,
restrictions and conditions (collectively, the “Preferred Shares Series A Provisions”): 
 1.    INTERPRETATION 

1.1    Defined Terms 
 The following words and
phrases whenever used in the Preferred Shares Series A Provisions shall have the following meanings, unless there be something in the context otherwise inconsistent therewith: 

(a)    “Business Day” shall mean a day other than a Saturday, a Sunday or any other day that is treated as a holiday in the
municipality where the Corporation’s registered office in Canada is situated; 
 (b)    “Conversion Basis” at any time
shall mean the number of Common Shares of the Corporation into which at such time one (1) Preferred Share Series A shall be convertible in accordance with the provisions of Article 4 of these Preferred Shares Series A Provisions; 

(c)    “Conversion Price” shall mean $0.50; 

 (d)    “Dividend Payment Date” shall mean the 1st days of January, April, July
and October in each calendar year; 
 (e)    “Dividend Rate” shall mean 12% per year, calculated monthly; 

(f)    “Dividend Reinvestment and Stock Purchase Plans” shall mean any plan or plans in effect from time to time pursuant to
which, among other things, the holders of the Corporation’s outstanding Common Shares may: 
 (i)    purchase with reinvested
dividends at not less than 75% of a specified average market price, additional Common Shares to be issued from treasury; 
 (ii)    make
optional payments to be applied to the purchase of Common Shares to be issued from treasury at 100% of a specified average market price of Common Shares; or 

(iii)    receive additional Common Shares as stock dividends by electing to receive dividends in Common Shares in lieu of ordinary cash
dividends being based on not less than 75% of a specified average market price of Common Shares, 
 or any analogous plan or plans; 

(g)    “Equivalent Conversion Price” at any time shall mean the quotient obtained by dividing the sum of $1.00 by the Conversion
Basis in effect at such time; 
 (h)    “Holder’s Conversion Option Period” shall have the meaning attributed to it by
paragraph 4.2.2.1; 
 (i)    “Market Price” of the Common Shares at any date shall mean the weighted average trading prices
per share of the Common Shares on The Toronto Stock Exchange (or, if the Common Shares are not listed on The Toronto Stock Exchange, on such stock exchange on which such shares are listed as may be selected for that purpose by the directors) during
the twenty (20) most recent trading days on which there have been trades immediately prior to such date; provided that if the Common Shares are not listed on any stock exchange, the market price of the Common Shares shall be determined by the
directors, which determination shall be conclusive; 
 (j)    “Notice of the Corporation” shall have the meaning attributed to
it by paragraph 4.2.1; 
 (k)    “Notice of the Trustee” shall have the meaning attributed to it by paragraph 4.2.2; 

(l)    “Common Shares” shall mean Common Shares of the Corporation and shares of any other class resulting from any
reclassification or change of such shares; and 
 (m)    “Trust Funds” shall have the meaning attributed to it by paragraph
4.2.1. 
 1.2    Reference to Statutes 

Any reference in the Preferred Shares Series A Provisions to any statute shall be deemed to be a reference to such statute as amended or re-enacted from time to time. 
 1.3    Canadian Funds 

All amounts payable pursuant hereto shall be payable in lawful money of Canada. 

1.4    Non-Business Day 

If any day on which any dividend on the Preferred Shares Series A is payable or by which any other action is required to be taken hereunder is not a Business
Day, then such dividend shall be payable or such other action shall be required to be taken on the next succeeding day that is a Business Day. 

1.5    Herein, hereto, etc. 
 The words
“herein”, “hereto”, “hereof and similar words refer, unless the context clearly indicates the contrary, to the whole of the Preferred Shares Series A Provisions and not to any particular Article, subsection or paragraph
thereof. 

 1.6    Number and Gender 

Words importing the singular number only shall include the plural and vice-versa, words importing the use of any gender shall include all genders and words
importing persons shall include firms and corporations and vice versa. 
 2.    DIVIDENDS 

2.1    Payment of Dividends 
 The holders of
Preferred Shares Series A shall be entitled to receive, and the Corporation shall pay thereon, as and when declared by the board of directors out of moneys properly applicable to the payment of dividends, cumulative preferential cash dividends (in
priority to the Common Shares and any other shares ranking junior to the Preferred Shares Series A) in the amounts determined from time to time in accordance with the provisions hereof. Such dividends on the Preferred Shares Series A shall accrue on
a day-to-day basis from and including the date of issue thereof and shall be payable on each Dividend Payment Date to the holders of record at the close of business on
the third (3rd) Business Day immediately preceding such Dividend Payment Date by cheques drawn on a Canadian chartered bank and payable at par at any branch in Canada of such bank and the delivery of such cheques shall satisfy and discharge all
liability for such dividends to the extent of the sums represented thereby, unless such cheques are not paid on due presentation. If on any Dividend Payment Date dividends payable on such date are not paid in full on all the Preferred Shares Series
A then issued and outstanding, such dividends or the unpaid part thereof shall be paid on a subsequent date or dates determined by the directors on which the Corporation shall have sufficient moneys properly applicable, under the provisions of any
applicable law. The holders of the Preferred Shares Series A shall not be entitled to any dividends other than or in excess of the dividends provided for in this Article 2. 

2.2    Amount of Dividends 

2.2.1    Subject as hereinafter provided, the amount of the dividend payable on any Dividend Payment Date on any Preferred Share Series A
then outstanding shall be equal to the amount (rounded to the nearest $0.01) calculated by applying the relevant Dividend Rate for the dividend period ending on the day immediately preceding such Dividend Payment Date to the sum of $1.00. 

2.2.2    The dividend payable on any Dividend Payment Date or any other date as herein provided to any holder of Preferred Shares Series A
shall be calculated by multiplying the amount of the dividend payable on such date on each such share by the total number of Preferred Shares Series A held by such holder and rounding to the nearest $0.01. 

2.2.3    For the purposes of calculating the amount of the dividend payable on April 1, 2000, the Dividend Rate for the dividend
period ending on April 1, 2000 shall be the Dividend Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in such dividend period and the denominator of which is number of days in the
stub quarter. 
 2.2.4    For the purposes of calculating the amount of the dividend payable on any day other than a Dividend Payment
Date, the period beginning on the immediately preceding Dividend Payment Date (or, prior to the first regular Dividend Payment Date, the date of issue of the Preferred Shares Series A) and ending on the day immediately preceding the date of such
dividend payment shall be deemed to be a dividend period and the Dividend Rate for such deemed dividend period shall be the Dividend Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in
such deemed dividend period and the denominator of which is the number of days in the stub quarter in which such deemed dividend period is included. 

3.    PURCHASE FOR CANCELLATION 

3.1    The Corporation may, subject to the provisions of the Canada Business Corporations Act, purchase Preferred Shares Series A at the
best possible price obtainable in the open market and upon such terms and conditions as may be freely negotiated with shareholders from time to time. Any Preferred Shares Series A so repurchased shall be cancelled. 

 4.    CONVERSION AND REDEMPTION PRIVILEGE 

4.1    Conversion at Option of Holder 

4.1.1    A holder of Preferred Shares Series A may choose at any time to demand the conversion of all but not less than all amounts paid up
with respect to the Preferred Shares Series A by converting the entire amount paid up on such shares held by such holder, plus, at the holder’s option, all or a portion of the unpaid dividends accumulated thereon, if any, into fully paid and non-assessable Common Shares of the Corporation, on a conversion basis established (i) in respect of the amounts paid up with respect to the Preferred Shares, by dividing the amount paid up on such shares by
the Conversion Price and (ii) in respect of the unpaid dividends accumulated thereon, by dividing the amount of unpaid dividends accumulated in respect of which a holder made an election to convert for the then outstanding Preferred Shares
Series A to be converted by the Market Price, as of the Dividend Payment Date of the dividend payment period during which each such unpaid dividend amount became due. 

4.1.2    The conversion right provided for in paragraph 4.1.1 may be exercised by the holder of Preferred Shares Series A by sending to
the Corporation’s transfer agent, at its principal place of business in the cities of Montreal or Toronto, the Preferred Shares Series A certificate to be converted and a notice of the exercise of the conversion right, which notice shall have
been duly signed by the holder of Preferred Shares Series A certificate and shall specify (i) the number of Preferred Shares Series A being converted; (ii) the value of the amounts paid up in respect thereon; (iii) the value of
dividends accumulated and unpaid being converted if any; and (iv) the directions for registration and delivery of the Common Shares to be issued (failing which the transfer agent of the Corporation shall use the holder’s last known name
and address in its registers). If applicable, the holder of Preferred Shares Series A shall provide, together with the aforementioned items, any transfer tax or other tax which may be exigible with respect to such conversion if the Common Shares
resulting from the conversion are to be issued to persons other than the holder of the converted Preferred Shares Series A. A surrender to the Corporation’s transfer agent, made by the holder of Preferred Shares Series A to be converted, in
accordance with this subsection 4.1 and including the duly completed and signed conversion notice shall be deemed to constitute a contract between the holder of Preferred Shares Series A and the Corporation pursuant whereto (i) the holder of
Preferred Shares Series A subscribes for the number of Common Shares the holder of Preferred Shares Series A is entitled to receive pursuant to the conversion, (ii) the holder of Preferred Shares Series A releases the Corporation from any
liability with respect to the converted Preferred Shares Series A, and (iii) the Corporation agrees that such surrender of the Preferred Shares Series A for conversion constitutes payment in full of the subscription price for the Common Shares
to be issued upon the conversion, the whole with effect as of the date of the conversion at the holder’s option as provided hereby. 

4.1.3    As soon as possible after the notice of conversion is received by the Corporation, it shall issue and deliver or cause to be
issued and delivered to holders of Preferred Shares Series A certificates so surrendered for conversion, or to their written order, one or more certificates registered in the name of the person or persons indicated in the conversion notice, which
certificate(s) shall represent the number of Common Shares resulting from the conversion of the Preferred Shares Series A surrendered for such purpose. The conversion into Common Shares shall be deemed to have been made immediately prior to the
close of business on the date of receipt by the Corporation of the conversion notice and, as of that moment, (i) the rights of the holder of converted Preferred Shares Series A, in such capacity, shall cease to exist, (ii) the person or
persons in whose name one or more certificates representing the Common Shares must be registered and delivered following the conversion shall be deemed to have become registered holders of the Common Shares represented by the certificate(s) and
(iii) any unpaid dividends not converted shall be paid to such holder in full and in cash by the Corporation forthwith. However, if the Corporation’s transfer books for the said Common Shares are closed on such date, the Corporation shall
not be obligated to issue or cause to be issued any Common Shares until the date on which such transfer books are re-opened, and the holder of Preferred Shares Series A having effected the conversion shall not
be deemed to have become the holder of the Common Shares to which the conversion entitles him as long as the said transfer books shall not have been re-opened. 

4.2    Redemption Offer by Corporation 

4.2.1    The Corporation may choose at any time after February 28, 2003, upon the giving to the Corporation’s transfer agent of a
notice as hereinafter provided for, to offer to redeem all or part of the then outstanding Preferred Shares Series A, plus all unpaid dividends accumulated thereon. The notice of the Corporation to its transfer agent (the “Notice of the
Corporation”) shall set forth (i) the date of redemption (which shall not be a date which occurs less than sixty (60) Business Days and no more than ninety (90) Business Days after the date of the giving of the Notice of the
Corporation); (ii) the number of Preferred Shares Series A plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that the holders of Preferred Shares Series A have a choice to either accept
the redemption for cash from the Corporation or elect 

 
to convert, with respect to the corresponding amounts, the Preferred Shares Series A and all or, at the holder’s option, part of the dividends accumulated thereon, into Common Shares;
(iv) the fact that holders of Preferred Shares Series A have twenty (20) Business Days from the date of giving of the Notice of the Trustee as described below to make their choice and (v) the fact that if the Preferred Share Series A
certificates are not surrendered to the Corporation’s transfer agent, together with a duly completed notice for the exercise of the conversion right completed as provided for by paragraph 4.1.2 hereof, by the expiry of such twentieth (20th)
Business Day, such holder shall be deemed to have chosen payment in cash. The Notice of the Corporation shall be accompanied by the tender by the Corporation, to its transfer agent, in trust, of the amounts required to effect payment for the
redemption of the number of Preferred Shares Series A stated in the Notice of the Corporation, plus unpaid dividends accumulated thereon (the “Trust Funds”). 

4.2.2    As soon as possible after the receipt of the Notice of the Corporation and of the Trust Funds, the Corporation’s transfer
agent shall deliver to holders of Preferred Shares Series A a notice (a “Notice of the Trustee”), which notice shall set forth (i) the date of redemption stated in the Notice of the Corporation; (ii) the number of Preferred
Shares Series A plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that holders of Preferred Shares Series A have a choice to either accept redemption for cash from the Corporation or
elect to convert, with respect to the corresponding amounts, the Preferred Shares Series A and all or, at the holder’s option, part of the dividends accumulated thereon, into Common Shares; (iv) the fact that holders of Preferred Shares
Series A have twenty (20) Business Days from the date of giving of the Notice of the Trustee to make their choice; (v) the fact that if a Preferred Share Series A is not surrendered to the Corporation’s transfer agent, together with a
duly completed form for the exercise of the conversion right, by the expiry of such delay, such holder shall be deemed to have chosen redemption for cash and (vi) that upon such surrender of the Preferred Shares Series A for conversion such a
holder of Preferred Shares Series A has the right to obtain the certificates representing the Common Shares resulting from the conversion or the cash, as applicable. Upon reception of the Notice of the Trustee, a holder of Preferred Shares Series A
shall then have the option: 
 4.2.2.1    to refuse the Corporation’s cash redemption offer, in which case such holder must
surrender for conversion the corresponding number of Preferred Shares Series A held by him, by sending to the Trustee, at its principal place of business in the cities of Montreal or Toronto, within twenty (20) Business Days of the giving of
the Notice of the Trustee (the “Holders Conversion Option Period”) the Preferred Shares Series A, surrendered for conversion together with a notice of exercise of the conversion right, completed as provided for by paragraph 4.1.2 hereof
which notice shall have been duly signed and completed by the Holder of Preferred Shares Series A; or 
 4.2.2.2    to accept the
Corporation’s cash redemption offer, in which case no further actions or steps are required of such holder in order to indicate his choice. 

4.2.3    If a holder of Preferred Shares Series A has not surrendered for conversion the Preferred Shares Series A held by him pursuant to
the provisions of paragraph 4.2.2.1 above within the Holder’s Conversion Option Period, such holder shall be deemed not to have exercised the option referred to in paragraph 4.2.2.1 and shall thereafter be deemed to have exercised the option
referred to in paragraph 4.2.2.2. 
 4.2.4    If a holder of Preferred Shares Series A has exercised the option provided in paragraph
4.2.2.1, the Corporation’s transfer agent shall, within ten (10) Business Days following the Holder’s Conversion Option Period, upon receipt of the holder’s Preferred Shares Series A certificates tendered by such holder together
with a notice of conversion completed in the same manner as set out in paragraph 4.1.2 above, deliver to the holders of Preferred Shares Series A certificates so surrendered for conversion, or to their written order, one or more certificates
registered in the name of the person or persons indicated by such holders of Preferred Shares Series A, which certificate(s) shall represent such number of Common Shares resulting from the conversion of the Preferred Shares Series A as is obtained
(i) in respect of the amounts paid up with respect to the Preferred Shares Series A by dividing the number of Preferred Shares Series A being converted by the Conversion Price and (ii) in respect of the unpaid dividends accumulated thereon
by dividing the amount of unpaid dividends accumulated on the Preferred Shares Series A being converted by the Market Price as of the Dividend Payment Date of the dividend payment period during which each such unpaid dividend amount became due. If
only a portion of the amount paid up or unpaid dividends on the Preferred Shares Series A certificates surrendered for conversion is to be converted, the holders of such Preferred Shares Series A shall be entitled to receive, at no cost,
concurrently with the surrender of any Preferred Share Series A certificates of which only a portion has been converted, one or more Preferred Shares Series A certificates representing the amount paid up thereon and a cash payment representing the
unpaid dividends accumulated in respect of the surrendered Preferred Shares Series A. The conversion into Common Shares shall be deemed to have been made immediately prior to the close of business on the date of conversion and, as of that moment,
(i) the rights (except as regards any part of 

 the Preferred Shares Series A which has not been converted) of the holders of converted Preferred Shares
Series A, in such capacity, shall cease to exist up to the value of the paid up capital so converted and unpaid dividends thereon, and (ii) the person or persons in whose name one or more certificates representing the Common Shares must be
registered and delivered following the conversion shall be deemed to have become a registered holder or registered holders of the Common Shares represented by the certificate(s). However, if the Corporation’s transfer books for the said Common
Shares are closed on the date of conversion, the Corporation shall not be obligated to issue or cause to be issued any Common Shares until the date on which such transfer books are re-opened, and the holder of
Preferred Shares Series A having effected the conversion shall not be deemed to have become the holder of the Common Shares to which the conversion entitles him as long as the said transfer books shall not have been
re-opened. 
 4.2.5 If a holder of Preferred Shares Series A has exercised the option provided by paragraph 4.2.2.2,
the Trustee shall, within ten (10) Business Days following the Holder’s Conversion Option Period, send to such holder of Preferred Shares Series A a notice which shall set forth (i) that the holder is deemed to have accepted the
Corporation’s offer of redemption for cash; (ii) the amount paid up in respect of outstanding Preferred Shares Series A (including unpaid dividends accumulated thereon) which is thus redeemed, (iii) the fact that such holder has the
right to receive a certified cheque, bank draft or money order for such amounts from the Trust Funds of the Corporation’s transfer agent and (iv) that in order to receive payment of the amounts to be repaid by the Corporation, the holder
of Preferred Shares Series A must surrender for cancellation his Preferred Share Series A certificate(s) at the principal offices of the Corporation’s transfer agent in the cities of Montreal or Toronto. Upon receipt of the Preferred Shares
Series A certificates from such holders, the Corporation’s transfer agent shall deliver to the holders of Preferred Shares Series A certificates so surrendered for cancellation, or to their written order, from the Trust Funds, certified
cheques, bank drafts or money orders made out in the respective names of the holders of Preferred Shares Series A or in the name of the person or persons indicated by the holder of Preferred Shares Series A. If only a portion of the amount paid up
or unpaid dividends on the Preferred Shares Series A certificates surrendered for cancellation is to be redeemed, the holders of such Preferred Shares Series A shall be entitled to receive, at no cost, concurrently with the surrender of the
Preferred Shares Series A certificates of which only a portion is to be redeemed, one or more Preferred Shares Series A certificates representing the amount of the surrendered Preferred Shares Series A certificates which has not been redeemed. The
redemption of Preferred Shares Series A certificates shall be deemed to be made immediately prior to the close of business on the date of redemption and as of that moment, the rights (except as regards any part of Preferred Shares Series A not
repaid or unpaid dividends) of the holders of cancelled Preferred Shares Series A, in such capacity, shall cease to exist up to the value of the paid up capital and any dividends thereon so repaid. 

4.3 Effect of Conversion of Preferred Shares Series A 
 4.3.1 If
the Preferred Shares Series A are duly converted in accordance with the provisions hereof, the Common Shares subscribed for shall be issued as fully paid and non-assessable Common Shares and the person to whom
such Common Shares are issued shall become the holder of record of such Common Shares on the date of conversion unless the transfer registers of the Trustee for the Common Shares shall be closed on such date, in which case the Common Shares
subscribed for shall be deemed to have been issued and such person shall be deemed to have become the holder of record of such Common Shares on the date on which such transfer registers are reopened. 

4.3.2 If any fractional interests in a Common Share would, except for the provisions of this paragraph 4.3.2, be deliverable to a holder of Preferred Shares
Series A upon his conversion of Preferred Shares Series A after adding the sum of the Common Shares to which such holder of Preferred Shares Series A would be entitled upon such exercise, the Corporation shall make a cash payment equal to the Market
Price of the fraction of the Common Share not so issued. 
 4.4 Cancellation of Surrendered Preferred Shares Series A Certificates 

All Preferred Shares Series A certificates surrendered to the Corporation’s transfer agent for redemption or conversion shall be cancelled by the transfer
agent. The transfer agent shall, if required by the Corporation, furnish the Corporation with a certificate identifying the Preferred Shares Series A certificates so cancelled and the number of Common Shares which could have been or were acquired
pursuant to each cancelled Preferred Shares Series A certificate deemed to have been cancelled. 

 4.5 Entitlement to Dividends 

A holder of Preferred Shares Series A on the record date for any dividend declared payable on such share on the Dividend Payment Date will be entitled to such
dividend notwithstanding that such share is converted after such record date and before the payment date of such dividend, and the registered holder of any Common Share resulting from any conversion shall be entitled to rank equally with the
registered holders of all other Common Shares in respect of all dividends declared payable to holders of Common Shares of record on any date after the date of conversion. Subject as aforesaid, no payment or adjustment will be made on account of any
dividend, accrued or otherwise, on the Preferred Shares Series A converted or the Common Shares resulting from any conversion. 
 5. RESTRICTIONS ON PAYMENT
OF DIVIDENDS AND RETIREMENT OF SHARES 
 5.1 So long as any of the Preferred Shares Series A are outstanding, the Corporation shall not, without the prior
sanction of the holders thereof given in the same manner as specified for the amendment of the Preferred Shares Class Provisions: 
 (a) declare or pay
or set apart for payment any dividends (other than share dividends in shares ranking junior to the Preferred Shares Series A) on the Common Shares or any other shares of the Corporation ranking junior to the Preferred Shares Series A with respect to
payment of dividends, or 
 (b) call for redemption, purchase, acquire for value or reduce any shares of the Corporation ranking junior to the Preferred
Shares Series A with respect to repayment of capital or with respect to payment of dividends, unless all dividends up to and including the dividend payable on the last preceding Dividend Payment Date on all Preferred Shares Series A and other
preferred shares ranking on a parity with the said shares with respect to payment of dividends then outstanding, shall have been declared and paid or made available for payment at the date of any such action referred to in the foregoing paragraphs
(a) and (b) and unless there shall remain, after the conclusion of any such action referred to in the foregoing paragraphs (a) and (b), sufficient funds for the redemption of all then issued and outstanding Preferred Shares Series A. 

6. CREATION OR ISSUE OF ADDITIONAL PREFERRED SHARES 
 6.1 At any
time when any of the Preferred Shares Series A are outstanding, the Corporation shall not, without the prior sanction of the holders of 66 2/3% of the Preferred Shares Series A given as specified in the Preferred Shares Class Provisions,
create, issue or sell any other shares ranking prior to the Preferred Shares Series A with respect to the payment of dividends or repayment of capital. 

7. AMENDMENTS 
 7.1 The provisions of sections 1 to 7, inclusive,
of the Preferred Shares Series A Provisions may be repealed, altered, modified, amended or amplified only with the sanction of the holders of the Preferred Shares Series A given as specified in the Preferred Shares Class Provisions, in addition
to any other approval required by the Canada Business Corporations Act. 
 PREFERRED SHARES SERIES B 

The Preferred Shares Series B shall, in addit ion to the rights, privileges, restrictions and conditions attached to the Preferred Shares as a class
(collectively, the “Preferred Shares Class Provisions”) carry and be subject to the following rights, privileges, restrictions and conditions (collectively, the “Preferred Shares Series B Provisions”): 

1. INTERPRETATION 
 1.1 Defined Terms 

The following words and phrases whenever used in the Preferred Shares Series B Provisions shall have the following meanings, unless there be something in the
context otherwise inconsistent therewith: 
 (a) “Business Day” shall mean a day other than a Saturday, a Sunday or any other day that is treated
as a holiday in the municipality where the Corporation’s registered office in Canada is situated; 
 (b) “Conversion Basis” at any time shall
mean the number of Common Shares of the Corporation into which at such time one (1) Preferred Share Series B shall be convertible in accordance with the provisions of Article 4 of these Preferred Shares Series B Provisions; 

 (c) “Conversion Price” shall mean $0.60; 

(d) “Dividend Payment Date” shall mean the 1st days of January, April, July and October in each calendar year; 

(e) “Dividend Rate” shall mean 12% per year, calculated monthly; 

(f) “Dividend Reinvestment and Stock Purchase Plans” shall mean any plan or plans in effect from time to time pursuant to which, among other things,
the holders of the Corporation’s outstanding Common Shares may: 
 (i) purchase with reinvested dividends at not less than 75% of a specified average
market price, additional Common Shares to be issued from treasury; 
 (ii) make optional payments to be applied to the purchase of Common Shares to be
issued from treasury at 100% of a specified average market price of Common Shares; or 
 (iii) receive additional Common Shares as stock dividends by
electing to receive dividends in Common Shares in lieu of ordinary cash dividends being based on not less than 75% of a specified average market price of Common Shares, or any analogous plan or plans; 

(g) “Equivalent Conversion Price” at any time shall mean the quotient obtained by dividing the sum of $1.00 by the Conversion Basis in effect at
such time; 
 (h) “Holder’s Conversion Option Period” shall have the meaning attributed to it by paragraph 4.2.2.1; 

(i) “Market Price” of the Common Shares at any date shall mean the weighted average trading prices per share of the Common Shares on The Toronto
Stock Exchange (or, if the Common Shares are not listed on The Toronto Stock Exchange, on such stock exchange on which such shares are listed as may be selected for that purpose by the directors) during the twenty (20) most recent trading days
on which there have been trades immediately prior to such date; provided that if the Common Shares are not listed on any stock exchange, the market price of the Common Shares shall be determined by the directors, which determination shall be
conclusive; 
 (j) “Notice of the Corporation” shall have the meaning attributed to it by paragraph 4.2.1; 

(k) “Notice of the Trustee” shall have the meaning attributed to it by paragraph 4.2.2; 

(l) “Common Shares” shall mean Common Shares of the Corporation and shares of any other class resulting from any reclassification or change of such
shares; and 
 (m) “Trust Funds” shall have the meaning attributed to it by paragraph 4.2.1. 

1.2 Reference to Statutes 
 Any reference in the Preferred Shares
Series B Provisions to any statute shall be deemed to be a reference to such statute as amended or re-enacted from time to time. 

1.3 Canadian Funds 
 All amounts payable pursuant hereto shall be
payable in lawful money of Canada. 
 1.4 Non-Business Day 

If any day on which any dividend on the Preferred Shares Series B is payable or by which any other action is required to be taken hereunder is not a Business
Day, then such dividend shall be payable or such other action shall be required to be taken on the next succeeding d ay that is a Business Day. 

 1.5 Herein, hereto, etc. 

The words “herein”, “hereto”, “hereof” and similar words refer, unless the context clearly indicates the contrary, to the whole
of the Preferred Shares Series B Provisions and not to any particular Article, subsection or paragraph thereof. 
 1.6 Number and Gender 

Words importing the singular number only shall include the plural and vice-versa, words importing the use of any gender shall include all genders and words
importing persons shall include firms and corporations and vice versa. 
 2. DIVIDENDS 

2.1 Payment of Dividends 
 The holders of Preferred Shares Series
B shall be entitled to receive, and the Corporation shall pay thereon, as and when declared by the board of directors out of moneys properly applicable to the payment of dividends, cumulative preferential cash dividends (in priority to the Common
Shares and any other shares ranking junior to the Preferred Shares Series B) in the amounts determined from time to time in accordance with the provisions hereof. Such dividends on the Preferred Shares Series B shall accrue on a day-to-day basis from and including the date of issue thereof and shall be payable on each Dividend Payment Date to the holders of record at the close of business on the third
(3rd) Business Day immediately preceding such Dividend Payment Date by cheques drawn on a Canadian chartered bank and payable at par at any branch in Canada of such bank and the delivery of such cheques shall satisfy and discharge all liability for
such dividends to the extent of the sums represented thereby, unless such cheques are not paid on due presentation. If on any Dividend Payment Date dividends payable on such date are not paid in full on all the Preferred Shares Series B then issued
and outstanding, such dividends or the unpaid part thereof shall be paid on a subsequent date or dates determined by the directors on which the Corporation shall have sufficient moneys properly applicable, under the provisions of any applicable law.
The holders of the Preferred Shares Series B shall not be entitled to any dividends other than or in excess of the dividends provided for in this Article 2. 

2.2 Amount of Dividends 
 2.2.1 Subject as hereinafter provided,
the amount of the dividend payable on any Dividend Payment Date on any Preferred Share Series B then outstanding shall be equal to the amount (rounded to the nearest $0.01) calculated by applying the relevant Dividend Rate for the dividend period
ending on the day immediately preceding such Dividend Payment Date to the sum of $1.00. 
 2.2.2 The dividend payable on any Dividend Payment Date or any
other date as herein provided to any holder of Preferred Shares Series B shall be calculated by multiplying the amount of the dividend payable on such date on each such share by the total number of Preferred Shares Series B held by such holder and
rounding to the nearest $0.01. 
 2.2.3 For the purposes of calculating the amount of the dividend payable on April 1, 2000, the Dividend Rate for the
dividend period ending on April 1, 2000 shall be the Dividend Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in such dividend period and the denominator of which is number of days
in the stub quarter. 
 2.2.4 For the purposes of calculating the amount of the dividend payable on any day other than a Dividend Payment Date, the period
beginning on the immediately preceding Dividend Payment Date (or, prior to the first regular Dividend Payment Date, the date of issue of the Preferred Shares Series B) and ending on the day immediately preceding the date of such dividend payment
shall be deemed to be a dividend period and the Dividend Rate for such deemed dividend period shall be the Dividend Rate as defined in paragraph 2.2.1 hereof multiplied by a fraction the numerator of which is the number of days in such deemed
dividend period and the denominator of which is the number of days in the stub quarter in which such deemed dividend period is included. 
 3. PURCHASE FOR
CANCELLATION 
 3.1 The Corporation may, subject to the provisions of the Canada Business Corporations Act, purchase Preferred Shares Series B at the best
possible price obtainable in the open market and upon such terms and conditions as may be freely negotiated with shareholders from time to time. Any Preferred Shares Series B so repurchased shall be cancelled. 

 4. CONVERSION AND REDEMPTION PRIVILEGE 

4.1 Conversion at Option of Holder 
 4.1.1 A holder of Preferred
Shares Series B may choose at any time to demand the conversion of all but not less than all amounts paid up with respect to the Preferred Shares Series B by converting the entire amount paid up on such shares held by such holder, plus, at the
holder’s option, all or a portion of the unpaid dividends accumulated thereon, if any, into fully paid and non-assessable Common Shares of the Corporation, on a conversion basis established (i) in
respect of the amounts paid up with respect to the Preferred Shares, by dividing the amount paid up on such shares by the Conversion Price and (ii) in respect of the unpaid dividends accumulated thereon, by dividing the amount of unpaid
dividends accumulated in respect of which a holder made an election to convert for the then outstanding Preferred Shares Series B to be converted by the Market Price, as of the Dividend Payment Date of the dividend payment period during which each
such unpaid dividend amount became due. 
 4.1.2 The conversion right provided for in paragraph 4.1.1 may be exercised by the holder of Preferred Shares
Series B by sending to the Corporation’s transfer agent, at its principal place of business in the cities of Montreal or Toronto, the Preferred Shares Series B certificate to be converted and a notice of the exercise of the conversion right,
which notice shall have been duly signed by the holder of Preferred Shares Series B certificate and shall specify (i) the number of Preferred Shares Series B being converted; (ii) the value of the amounts paid up in respect thereon;
(iii) the value of dividends accumulated and unpaid being converted if any; and (iv) the directions for registration and delivery of the Common Shares to be issued (failing which the transfer agent of the Corporation shall use the
holder’s last known name and address in its registers). If applicable, the holder of Preferred Shares Series B shall provide, together with the aforementioned items, any transfer tax or other tax which may be exigible with respect to such
conversion if the Common Shares resulting from the conversion are to be issued to persons other than the holder of the converted Preferred Shares Series B. A surrender to the Corporation’s transfer agent, made by the holder of Preferred Shares
Series B to be converted, in accordance with this subsection 4.1 and including the duly completed and signed conversion notice shall be deemed to constitute a contract between the holder of Preferred Shares Series B and the Corporation pursuant
whereto (i) the holder of Preferred Shares Series B subscribes for the number of Common Shares the holder of Preferred Shares Series B is entitled to receive pursuant to the conversion, (ii) the holder of Preferred Shares Series B releases
the Corporation from any liability with respect to the converted Preferred Shares Series B, and (iii) the Corporation agrees that such surrender of the Preferred Shares Series B for conversion constitutes payment in full of the subscription
price for the Common Shares to be issued upon the conversion, the whole with effect as of the date of the conversion at the holder’s option as provided hereby. 

4.1.3 As soon as possible after the notice of conversion is received by the Corporation, it shall issue and deliver or cause to be issued and delivered to
holders of Preferred Shares Series B certificates so surrendered for conversion, or to their written order, one or more certificates registered in the name of the person or persons indicated in the conversion notice, which certificate(s) shall
represent the number of Common Shares resulting from the conversion of the Preferred Shares Series B surrendered for such purpose. The conversion into Common Shares shall be deemed to have been made immediately prior to the close of business on the
date of receipt by the Corporation of the conversion notice and, as of that moment, (i) the rights of the holder of converted Preferred Shares Series B, in such capacity, shall cease to exist, (ii) the person or persons in whose name one
or more certificates representing the Common Shares must be registered and delivered following the conversion shall be deemed to have become registered holders of the Common Shares represented by the certificate(s) and (iii) any unpaid
dividends not converted shall be paid to such holder in full and in cash by the Corporation forthwith. However, if the Corporation’s transfer books for the said Common Shares are closed on such date, the Corporation shall not be obligated to
issue or cause to be issued any Common Shares until the date on which such transfer books are re-opened, and the holder of Preferred Shares Series B having effected the conversion shall not be deemed to have
become the holder of the Common Shares to which the conversion entitles him as long as the said transfer books shall not have been re-opened. 

4.2 Redemption Offer by Corporation 
 4.2.1 The Corporation may
choose at any time after February 28, 2003, upon the giving to the Corporation’s transfer agent of a notice as hereinafter provided for, to offer to redeem all or part of the then outstanding Preferred Shares Series B, plus all unpaid
dividends accumulated thereon. The notice of the Corporation to its transfer agent (the “Notice of the Corporation”) shall set forth (i) the date of redemption (which shall not be a 

 
date which occurs less than sixty (60) Business Days and no more than ninety (90) Business Days after the date of the giving of the Notice of the Corporation); (ii) the number of
Preferred Shares Series B plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that the holders of Preferred Shares Series B have a choice to either accept the redemption for cash from the
Corporation or elect to convert, with respect to the corresponding amounts, the Preferred Shares Series B and all or, at the holder’s option, part of the dividends accumulated thereon, into Common Shares; (iv) the fact that holders of
Preferred Shares Series B have twenty (20) Business Days from the date of giving of the Notice of the Trustee as described below to make their choice and (v) the fact that if the Preferred Share Series B certificates are not surrendered to
the Corporation’s transfer agent, together with a duly completed notice for the exercise of the conversion right completed as provided for by paragraph 4.1.2 hereof, by the expiry of such twentieth (20th) Business Day, such holder shall be
deemed to have chosen payment in cash. The Notice of the Corporation shall be accompanied by the tender by the Corporation, to its transfer agent, in trust, of the amounts required to effect payment for the redemption of the number of Preferred
Shares Series B stated in the Notice of the Corporation, plus unpaid dividends accumulated thereon (the “Trust Funds”). 
 4.2.2 As soon as
possible after the receipt of the Notice of the Corporation and of the Trust Funds, the Corporation’s transfer agent shall deliver to holders of Preferred Shares Series B a notice (a “Notice of the Trustee”), which notice shall set
forth (i) the date of redemption stated in the Notice of the Corporation; (ii) the number of Preferred Shares Series B plus the amount of unpaid dividends accumulated thereon which the Corporation is offering to redeem; (iii) that
holders of Preferred Shares Series B have a choice to either accept redemption for cash from the Corporation or elect to convert, with respect to the corresponding amounts, the Preferred Shares Series B and all or, at the holder’s option, part
of the dividends accumulated thereon, into Common Shares; (iv) the fact that holders of Preferred Shares Series B have twenty (20) Business Days from the date of giving of the Notice of the Trustee to make their choice; (v) the fact
that if a Preferred Share Series B is not surrendered to the Corporation’s transfer agent, together with a duly completed form for the exercise of the conversion right, by the expiry of such delay, such holder shall be deemed to have chosen
redemption for cash and (vi) that upon such surrender of the Preferred Shares Series B for conversion such a holder of Preferred Shares Series B has the right to obtain the certificates representing the Common Shares resulting from the
conversion or the cash, as applicable. Upon reception of the Notice of the Trustee, a holder of Preferred Shares Series B shall then have the option: 

4.2.2.1 to refuse the Corporation’s cash redemption offer, in which case such holder must surrender for conversion the corresponding number of Preferred
Shares Series B held by him, by sending to the Trustee, at its principal place of business in the cities of Montreal or Toronto, within twenty (20) Business Days of the giving of the Notice of the Trustee (the “Holders Conversion Option
Period”) the Preferred Shares Series B, surrendered for conversion together with a notice of exercise of the conversion right, completed as provided for by paragraph 4.1.2 hereof which notice shall have been duly signed and completed by the
Holder of Preferred Shares Series B; or 
 4.2.2.2 to accept the Corporation’s cash redemption offer, in which case no further actions or steps are
required of such holder in order to indicate his choice. 
 4.2.3 If a holder of Preferred Shares Series B has not surrendered for conversion the Preferred
Shares Series B held by him pursuant to the provisions of paragraph 4.2.2.1 above within the Holder’s Conversion Option Period, such holder shall be deemed not to have exercised the option referred to in paragraph 4.2.2.1 and shall thereafter
be deemed to have exercised the option referred to in paragraph 4.2.2.2. 
 4.2.4 If a holder of Preferred Shares Series B has exercised the option provided
in paragraph 4.2.2.1, the Corporation’s transfer agent shall, within ten (10) Business Days following the Holder’s Conversion Option Period, upon receipt of the holder’s Preferred Shares Series B certificates tendered by such
holder together with a notice of conversion completed in the same manner as set out in paragraph 4.1.2 above, deliver to the holders of Preferred Shares Series B certificates so surrendered for conversion, or to their written order, one or more
certificates registered in the name of the person or persons indicated by such holders of Preferred Shares Series B, which certificate(s) shall represent such number of Common Shares resulting from the conversion of the Preferred Shares Series B as
is obtained (i) in respect of the amounts paid up with respect to the Preferred Shares Series B by dividing the number of Preferred Shares Series B being converted by the Conversion Price and (ii) in respect of the unpaid dividends
accumulated thereon by dividing the amount of unpaid dividends accumulated on the Preferred Shares Series B being converted by the Market Price as of the Dividend Payment Date of the dividend payment period during which each such unpaid dividend
amount became due. If only a portion of the amount paid up or unpaid dividends on the Preferred Shares Series B certificates surrendered for conversion is to be converted, the holders of such Preferred Shares Series B shall be entitled to receive,
at no cost, concurrently with the surrender of any Preferred Share Series B certificates of which only a portion has 

 
been converted, one or more Preferred Shares Series B certificates representing the amount paid up thereon and a cash payment representing the unpaid dividends accumulated in respect of the
surrendered Preferred Shares Series B. The conversion into Common Shares shall be deemed to have been made immediately prior to the close of business on the date of conversion and, as of that moment, (i) the rights (except as regards any part
of the Preferred Shares Series B which has not been converted) of the holders of converted Preferred Shares Series B, in such capacity, shall cease to exist up to the value of the paid up capital so converted and unpaid dividends thereon, and
(ii) the person or persons in whose name one or more certificates representing the Common Shares must be registered and delivered following the conversion shall be deemed to have become a registered holder or registered holders of the Common
Shares represented by the certificate(s). However, if the Corporation’s transfer books for the said Common Shares are closed on the date of conversion, the Corporation shall not be obligated to issue or cause to be issued any Common Shares
until the date on which such transfer books are re-opened, and the holder of Preferred Shares Series B having effected the conversion shall not be deemed to have become the holder of the Common Shares to which
the conversion entitles him as long as the said transfer books shall not have been re-opened. 
 4.2.5 If a holder
of Preferred Shares Series B has exercised the option provided by paragraph 4.2.2.2, the Trustee shall, within ten (10) Business Days following the Holder’s Conversion Option Period, send to such holder of Preferred Shares Series B a
notice which shall set forth (i) that the holder is deemed to have accepted the Corporation’s offer of redemption for cash; (ii) the amount paid up in respect of outstanding Preferred Shares Series B (including unpaid dividends
accumulated thereon) which is thus redeemed, (iii) the fact that such holder has the right to receive a certified cheque, bank draft or money order for such amounts from the Trust Funds of the Corporation’s transfer agent and
(iv) that in order to receive payment of the amounts to be repaid by the Corporation, the holder of Preferred Shares Series B must surrender for cancellation his Preferred Share Series B certificate(s) at the principal offices of the
Corporation’s transfer agent in the cities of Montreal or Toronto. Upon receipt of the Preferred Shares Series B certificates from such holders, the Corporation’s transfer agent shall deliver to the holders of Preferred Shares Series B
certificates so surrendered for cancellation, or to their written order, from the Trust Funds, certified cheques, bank drafts or money orders made out in the respective names of the holders of Preferred Shares Series B or in the name of the person
or persons indicated by the holder of Preferred Shares Series B. If only a portion of the amount paid up or unpaid dividends on the Preferred Shares Series B certificates surrendered for cancellation is to be redeemed, the holders of such Preferred
Shares Series B shall be entitled to receive, at no cost, concurrently with the surrender of the Preferred Shares Series B certificates of which only a portion is to be redeemed, one or more Preferred Shares Series B certificates representing the
amount of the surrendered Preferred Shares Series B certificates which has not been redeemed. The redemption of Preferred Shares Series B certificates shall be deemed to be made immediately prior to the close of business on the date of redemption
and as of that moment, the rights (except as regards any part of Preferred Shares Series B not repaid or unpaid dividends) of the holders of cancelled Preferred Shares Series B, in such capacity, shall cease to exist up to the value of the paid up
capital and any dividends thereon so repaid. 
 4.3 Effect of Conversion of Preferred Shares Series B 

4.3.1 If the Preferred Shares Series B are duly converted in accordance with the provisions hereof, the Common Shares subscribed for shall be issued as fully
paid and non-assessable Common Shares and the person to whom such Common Shares are issued shall become the holder of record of such Common Shares on the date of conversion unless the transfer registers of the
Trustee for the Common Shares shall be closed on such date, in which case the Common Shares subscribed for shall be deemed to have been issued and such person shall be deemed to have become the holder of record of such Common Shares on the date on
which such transfer registers are reopened. 
 4.3.2 If any fractional interests in a Common Share would, except for the provisions of this paragraph 4.3.2,
be deliverable to a holder of Preferred Shares Series B upon his conversion of Preferred Shares Series B after adding the sum of the Common Shares to which such holder of Preferred Shares Series B would be entitled upon such exercise, the
Corporation shall make a cash payment equal to the Market Price of the fraction of the Common Share not so issued. 
 4.4 Cancellation of Surrendered
Preferred Shares Series B Certificates 
 All Preferred Shares Series B certificates surrendered to the Corporation’s transfer agent for redemption or
conversion shall be cancelled by the transfer agent. The transfer agent shall, if required by the Corporation, furnish the Corporation with a certificate identifying the Preferred Shares Series B certificates so cancelled and the number of Common
Shares which could have been or were acquired pursuant to each cancelled Preferred Shares Series B certificate deemed to have been cancelled. 

 4.5 Entitlement to Dividends 

A holder of Preferred Shares Series B on the record date for any dividend declared payable on such share on the Dividend Payment Date will be entitled to such
dividend notwithstanding that such share is converted after such record date and before the payment date of such dividend, and the registered holder of any Common Share resulting from any conversion shall be entitled to rank equally with the
registered holders of all other Common Shares in respect of all dividends declared payable to holders of Common Shares of record on any date after the date of conversion. Subject as aforesaid, no payment or adjustment will be made on account of any
dividend, accrued or otherwise, on the Preferred Shares Series B converted or the Common Shares resulting from any conversion. 
 5. RESTRICTIONS ON PAYMENT
OF DIVIDENDS AND RETIREMENT OF SHARES 
 5.1 So long as any of the Preferred Shares Series B are outstanding, the Corporation shall not, without the prior
sanction of the holders thereof given in the same manner as specified for the amendment of the Preferred Shares Class Provisions: 
 (a) declare or pay
or set apart for payment any dividends (other than share dividends in shares ranking junior to the Preferred Shares Series B) on the Common Shares or any other shares of the Corporation ranking junior to the Preferred Shares Series B with respect to
payment of dividends, or 
 (b) call for redemption, purchase, acquire for value or reduce any shares of the Corporation ranking junior to the Preferred
Shares Series B with respect to repayment of capital or with respect to payment of dividends, unless all dividends up to and including the dividend payable on the last preceding Dividend Payment Date on all Preferred Shares Series B and other
preferred shares ranking on a parity with the said shares with respect to payment of dividends then outstanding, shall have been declared and paid or made available for payment at the date of any such action referred to in the foregoing paragraphs
(a) and (b) and unless there shall remain, after the conclusion of any such action referred to in the foregoing paragraphs (a) and (b), sufficient funds for the redemption of all then issued and outstanding Preferred Shares Series B. 

6. CREATION OR ISSUE OF ADDITIONAL PREFERRED SHARES 
 6.1 At any
time when any of the Preferred Shares Series B are outstanding, the Corporation shall not, without the prior sanction of the holders of 66 2/3% of the Preferred Shares Series B given as specified in the Preferred Shares Class Provisions,
create, issue or sell any other shares ranking prior to the Preferred Shares Series B with respect to the payment of dividends or repayment of capital. 

7. AMENDMENTS 
 7.1 The provisions of sections 1 to 7, inclusive,
of the Preferred Shares Series B Provisions may be repealed, altered, modified, amended or amplified only with the sanction of the holders of the Preferred Shares Series B given as specified in the Preferred Shares Class Provisions, in addition
to any other approval required by the Canada Business Corporations Act. 
  

							
	Date	  	Name - Nom	  	Signature	  	Capacity of - en qualité
	 2008-05-15
	  	PIERRE LAURIN	  	 	  	AUTHORIZED OFFICER

  
 Page 15 of 15 

 
 

 

					
	

	  	 Industry
	  	 Industrie

	  	 Canada
	  	 Canada

  

			
	  
 Certificate of Amendment
	  	  
 Certificat de modification

	Canada Business Corporations Act	  	Loi canadienne sur les sociétés par actions
	
	 PROMETIC LIFE SCIENCES INC.

                    PROMETIC SCIENCES DE
LA VIE INC.                    

	Corporate name / Dénomination sociale
	
	                            
    307730-6                                
	Corporation number / Numéro de société

  

					
	 I HEREBY CERTIFY that the articles of the above-named corporation are amended under section 178 of the
Canada Business Corporations Act as set out in the attached articles of amendment.
	 		  	JE CERTIFIE que les statuts de la société susmentionnée sont modifiés aux termes de l’article 178 de la Loi canadienne sur les sociétés par actions, tel
qu’il est indiqué dans les clauses modificatrices ci-jointes.

  
 

 
 Marcie Girouard 

 
 Director /
Directeur 
 2013-01-25 

 
 Date of Amendment
(YYYY-MM-DD) 
 Date de modification (AAAA-MM-JJ) 
  

  
 

 

									
	

	 	Industry	  	Industrie	  	Form 4	  	Formulaire 4
	 	Canada	  	Canada	  	Articles of Amendment	  	Clauses modificatrices
	 		  		  	 Canada Business Corporations Act

(CBCA) (s. 27 or 177)
	  	 Loi canadienne sur les sociétés par

actions (LCSA) (art. 27 ou 177)

  

			
	1	 	  
 Corporate name

		 	Dénomination sociale
		 	PROMETIC LIFE SCIENCES INC.
		 	PROMETIC SCIENCES DE LA VIE INC.
	2	 	  
 Corporation number

		 	Numéro de la société
		 	 307730-6

	3	 	The articles are amended as follows
		 	Les statuts sont modifiés de la façon suivante
		
		 	 The corporation amends the description of classes of shares as follows:

La description des catégories d’actions est modifiée comme suit:

See attached schedule / Voir l’annexe ci-jointe

  

			
	4	 	  
 Declaration: I certify that I am a
director or an officer of the corporation.

		 	Déclaration : J’atteste que je suis un administrateur ou un dirigeant de la société.

  

			
		 	Original signed by / Original signé par
		 	 Patrick Sartore

		 	Patrick Sartore
		 	450-781-0115

 

			
		  	  
 Misrepresentation constitutes an
offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for a term not exceeding six months or both (subsection 250(1) of the CBCA).

 
 Faire une fausse déclaration constitue une infraction et son auteur, sur
déclaration de culpabilité par procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un emprisonnement maximal de six mois, ou l’une de ces peines (paragraphe 250(1) de la LCSA).

 
 You are providing information required by the CBCA. Note that both the CBCA and the
Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.

 
 Vous fournissez des renseignements exigés par la LCSA. Il est à noter que
la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils seront stockés dans la banque de renseignements personnels numéro
IC/PPU-049.

  

			
	

	  	IC 3069 (2008/04)

 Schedule / Annexe 

Description of Classes of Shares / Description des catégories d’actions 

By removing the first 2 series of Preferred Shares forming part of the authorized share capital of the Corporation, consisting of a maximum of 1,050,000
shares designated as “Preferred Shares Series A” and a maximum of 950,000 shares designated as “Preferred Shares Series B”, as well as their rights, privileges, restrictions and conditions attached thereto. 

Schedule 1 to the Articles of Amendment dated May 8, 2008 containing a description of the share capital of the Corporation is hereby repealed and
replaced by the following Schedule 1. 
 S C H E D U L E  1 

TO THE ARTICLES OF AMENDMENT 
 The Corporation is authorized to
issue an unlimited number of Common Shares and an unlimited number of Preferred Shares issuable in series. 
 COMMON SHARES: 

The Common Shares shall have the following rights, privileges, restrictions and conditions: 

1. VOTING RIGHTS 
 The holders of Common Shares shall be entitled
to one (1) vote for each Common Share held by them at all meetings of shareholders. 
 2. LIQUIDATION, DISSOLUTION OR OTHER DISTRIBUTION OF ASSETS 

In the event of the voluntary or involuntary liquidation, dissolution, winding-up or other distribution of assets of
the Corporation, the holders of Common Shares shall be entitled to receive the remaining property of the Corporation, pari passu, to the exclusion of the holders of shares of any other class. 

3. DIVIDENDS 
 The holders of Common Shares shall be entitled,
pari passu, subject to the other provisions of this Schedule 1, to receive such dividends as may be declared by the directors of the Corporation from time to time. 

4. AMENDMENTS SUBJECT TO CONFIRMATION BY ARTICLES OF AMENDMENT 

Subject to confirmation by articles of amendment and the issue of a Certificate of Amendment, the director or directors of the Corporation may, at any time or
times or from time to time, adopt a resolution or resolutions whereby the terms hereof and of the foregoing paragraphs may be altered, amended or repealed or the application thereof suspended in any particular case and changes made in the rights,
privileges, restrictions and conditions attached to one or more classes of shares of the Corporation, but no such resolution shall have any force or effect until after it has been sanctioned by the vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) in value of the voting shares then outstanding and of at least sixty-six and two-thirds percent (66 2/3%) in value of shares of each class affected by such amendment, in each case voting separately as a class at a meeting or meetings specially called for such purpose. 

PREFERRED SHARES: 
 The Preferred Shares are issuable in series
and shall have the following rights, privileges, restrictions and conditions: 
 1. The directors of the Corporation may at any time and from time to time
issue the Preferred Shares in one or more series, each series to consist of such number of shares as may before issuance thereof be determined by the directors. 

 2. Subject to the provisions of paragraph 10, the holders of the Preferred Shares shall not, as such, have
any voting rights for the election of directors or for any other purpose nor shall they be entitled to attend shareholders’ meetings. 
 3. The
directors of the Corporation may (subject as hereinafter provided) from time to time fix before issuance the designation, rights, restrictions, conditions and limitations to be attached to the Preferred Shares of each series including, without
limiting the generality of the foregoing, the rate, amount or method of calculation of preferential dividends, whether or not cumulative or non-cumulative or partially cumulative, and whether such rate, amount
or method of calculation shall be subject to change or adjustment in the future, the currency or currencies of payment, the date or dates and place or places of payment thereof and the date or dates from which such preferential dividends shall
accrue, the redemption price and terms and conditions of redemption, the rights of retraction, if any, vested in the holders of Preferred Shares of such series, and the prices and the other terms and conditions of any rights of retraction, and
whether any additional rights of retraction may be vested in such holders in the future, conversion rights (if any) or other provisions attached to the Preferred Shares of such series, the whole subject to the issue by the Director, Industry Canada,
of a certificate of amendment in respect of articles of amendment in prescribed form to designate a series of shares. 
 4. When any fixed cumulative
dividends or amounts payable on a return of capital are not paid in full, the Preferred Shares of all series shall participate rateably in respect of such dividends including accumulations, if any, in accordance with the sums which would be payable
on the Preferred Shares if all such dividends were declared and paid in full, and on any return of capital in accordance with the sums which would be payable on such return of capital if all sums so payable were paid in full. 

5. The Preferred Shares shall be entitled to preference over the other classes of shares of the Corporation with respect to the payment of dividends and may
also be given such other preferences over the other classes of shares of the Corporation as may be fixed by the directors of the Corporation as to the respective series authorized to be issued. 

6. The Preferred Shares of each series shall rank on a parity with the Preferred Shares of every other series with respect to priority in payment of dividends
and in the distribution of assets in the event of liquidation, dissolution or winding-up of the Corporation whether voluntary or involuntary. 

7. In the event of the liquidation, dissolution or winding-up of the Corporation or other distribution of assets of
the Corporation among shareholders for the purpose of winding-up its affairs, the holders of the Preferred Shares shall, before any amount shall be paid to or any property or assets of the Corporation
distributed among the holders of the other classes of shares of the Corporation, be entitled to receive (i) an amount equal to the amount paid up on such shares, together with, in the case of cumulative dividends, all unpaid cumulative
dividends (which for such purpose shall be calculated as if such cumulative dividends were accruing from day to day for the period from the expiration of the last period for which cumulative dividends have been paid up to and including the date of
distribution) and, in the case of non-cumulative dividends, all declared and unpaid non-cumulative dividends, and (ii) if such liquidation, dissolution, winding-up or distribution shall be voluntary, an additional amount equal to the premium, if any, which would have been payable on the redemption of the said Preferred Shares, respectively, if they had been called
for redemption by the Corporation on the date of distribution and, if said Preferred Shares could not be redeemed on such date, then an additional amount equal to the greatest premium, if any, which would have been payable on the redemption of said
Preferred Shares, respectively. 
 8. No dividends shall at any time be declared or paid on or set apart for payment on any shares of the Corporation
ranking junior to the Preferred Shares unless all dividends up to and including the dividend payable for the last completed period for which such dividends shall be payable on each series of Preferred Shares then issued and outstanding shall have
been declared and paid 

 or set apart for payment at the date of such declaration or payment or setting apart for payment on such
shares of the Corporation ranking junior to the Preferred Shares nor, unless any such requirement is waived as part of the conditions, restrictions and limitations attached to a particular series of Preferred Shares, shall the Corporation call for
redemption or redeem or purchase for cancellation or reduce or otherwise pay off any of the Preferred Shares (less than the total amount then outstanding) or any shares of the Corporation ranking junior to the Preferred Shares unless all dividends
up to and including the dividend payable for the last completed period for which such dividends shall be payable on each series of the Preferred Shares then issued and outstanding shall have been declared and paid or set apart for payment at the
date of such call for redemption, purchase, reduction or other payment. 
 9. The Preferred Shares of any series may be purchased for cancellation or made
subject to redemption by the Corporation at such times and at such prices and upon such other terms and conditions as may be specified in the rights, privileges, restrictions and conditions attached to the Preferred Shares of such series as set
forth in the resolution of the board of directors of the Corporation and certificate of amendment relating to such series. 
 10. The provisions of
paragraphs 1 to 9, inclusive, and of this paragraph 10 may be deleted or varied in whole or in part by a Certificate of Amendment, but only with the prior approval of the holders of the Preferred Shares given as hereinafter specified in
addition to any other approval required by the Canada Business Corporations Act (or any other statutory provision of like or similar effect, from time to time in force). The approval of the holders of the Preferred Shares with respect to any and all
matters hereinbefore referred to may be given by at least 2/3 of the votes cast at a meeting of the holders of the Preferred Shares duly called for that purpose and held upon at least 21 days’ notice at which the holders of a majority of the
outstanding Preferred Shares are present or represented by proxy. If at any such meeting the holders of a majority of the outstanding Preferred Shares are not present or represented by proxy within one-half
hour after the time appointed for such meeting, then the meeting shall be adjourned to such date being not less than 30 days later and to such time and place as may be appointed by the chairman and not less than 21 days’ notice shall be given
of such adjourned meeting but it shall not be necessary in such notice to specify the purpose for which the meeting was originally called. At such adjourned meeting the holders of Preferred Shares present or represented by proxy may transact the
business for which the meeting was originally called and a resolution passed thereat by not less than 2/3 of the votes cast at such adjourned meeting shall constitute the authorization of the holders of the Preferred Shares referred to above. The
formalities to be observed in respect of the giving of notice of any such meeting or adjourned meeting and the conduct thereof shall be those from time to time prescribed by the by-laws of the Corporation with
respect to meetings of shareholders. On every poll taken at every such meeting or adjourned meeting every holder of Preferred Shares shall be entitled to one vote in respect of each Preferred Share held. 

					
	 

	 	 Innovation, Science and
 Economic Development
Canada
 Corporations Canada
	  	 Innovation, Sciences et
 Développement
économique Canada
 Corporations Canada

  

			
		
	Certificate of Amendment	 	Certificat de modification
	Canada Business Corporations Act	 	Loi canadienne sur les sociétés par actions

 PROMETIC LIFE SCIENCES INC. 

                    PROMETIC SCIENCES DE
LA VIE INC.                     

Corporate name / Dénomination sociale 

                  
            307730-6                            
   
 Corporation number / Numéro de société 

 

					
	 I HEREBY CERTIFY that the articles of the above-named corporation are amended under section 178 of the Canada
Business Corporations Act as set out in the attached articles of amendment.
	 		  	JE CERTIFIE que les statuts de la société susmentionnée sont modifiés aux termes de l’article 178 de la Loi canadienne sur les sociétés par actions, tel qu’il est
indiqué dans les clauses modificatrices ci-jointes.

  
 

 
 Virginie Ethier 

 
 Director /
Directeur 
 2017-06-01 

 
 Date of amendment
(YYYY-MM-DD) 
 Date de modification (AAAA-MM-JJ) 
  

  
 

 

					
	 

	 	 Innovation, Science and
 Economic Development
Canada
 Corporations Canada
	  	 Innovation, Sciences et
 Développement
économique Canada
 Corporations Canada

  

			
	Form 4	  	Formulaire 4
	Articles of Amendment	  	Clauses modificatrices
	Canada Business Corporations Act	  	Loi canadienne sur les sociétés par
	(CBCA) (s. 27 or 177)	  	actions (LCSA) (art. 27 ou 177)

  

			
		 	  

	 1
	 	Corporate name
		 	Dénomination sociale
		 	PROMETIC LIFE SCIENCES INC.
		 	PROMETIC SCIENCES DE LA VIE INC.
		 	  

	 2
	 	Corporation number
		 	Numéro de la société
	 	 	307730-6
		 	  

	 3
	 	The articles are amended as follows
		 	Les statuts sont modifiés de la façon suivante
		
		 	The corporation amends the other provisions as follows:
		 	Les autres dispositions sont modifiées comme suit:
		 	See attached schedule / Voir l’annexe ci-jointe
		 	
		 	  

	4	 	 Declaration: I certify that I am a
director or an officer of the corporation.

		 	 Déclaration : J’atteste que je suis un administrateur ou un dirigeant de la
société.

		
		 	

			
	 	 	Original signed by / Original signé par
	 	 	 Patrick Sartore

	 	 	Patrick Sartore
	 	 	450-781-0115
	 	 	 

			
		 	
		 	  
 Misrepresentation constitutes an
offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for a term not exceeding six months or both (subsection 250(1) of the CBCA).

		
		 	Faire une fausse déclaration constitue une infraction et son auteur, sur déclaration de culpabilité par procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un
emprisonnement maximal de six mois, ou l’une de ces peines (paragraphe 250(1) de la LCSA).
		
		 	You are providing information required by the CBCA. Note that both the CBCA and the Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.
		
		 	Vous fournissez des renseignements exigés par la LCSA. Il est à noter que la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils
seront stockés dans la banque de renseignements personnels numéro IC/PPU-049.

  

			
	

	  	IC 3069 (2008/04)

 Schedule / Annexe 

Other Provisions / Autres dispositions 

The directors may appoint one or more additional directors, who shall hold office for a term expiring not later than the close of the next annual meeting of
shareholders, but the total number of directors so appointed may not exceed one third of the number of directors elected at the previous annual meeting of shareholders. 

					
	

	 	 Innovation, Science and
 Economic Development
Canada
 Corporations Canada
	  	 Innovation, Sciences et
 Développement
économique Canada
 Corporations Canada

  

			
		
	Certificate of Amendment	 	Certificat de modification
	Canada Business Corporations Act	 	Loi canadienne sur les sociétés par actions

 PROMETIC LIFE SCIENCES INC. 

                    PROMETIC SCIENCES DE
LA VIE INC.                     

Corporate name / Dénomination sociale 

                  
            307730-6                            
   
 Corporation number / Numéro de société 

 

			
	 I HEREBY CERTIFY that the articles of the above-named corporation are amended under section 178 of the Canada
Business Corporations Act as set out in the attached articles of amendment.
	  	JE CERTIFIE que les statuts de la société susmentionnée sont modifiés aux termes de l’article 178 de la Loi canadienne sur les sociétés par actions, tel qu’il est
indiqué dans les clauses modificatrices ci-jointes.

  
 

 
 Cheryl Ringor 

 
 Deputy Director /
Directeur adjoint 
 2018-11-13 

 
 Date of amendment
(YYYY-MM-DD) 
 Date de modification (AAAA-MM-JJ) 
  

  
 

 

					
	

	 	 Innovation, Science and
 Economic Development
Canada
 Corporations Canada
	  	 Innovation, Sciences et
 Développement
économique Canada
 Corporations Canada

  

					
		 	Form 4	  	Formulaire 4
	                    	 	Articles of Amendment	  	Clauses modificatrices
		 	Canada Business Corporations Act	  	Loi canadienne sur les sociétés par
		 	(CBCA) (s. 27 or 177)	  	actions (LCSA) (art. 27 ou 177)

  

			
		 	  

	1	 	Corporate name
		 	Dénomination sociale
		 	PROMETIC LIFE SCIENCES INC.
		 	PROMETIC SCIENCES DE LA VIE INC.
		 	  

	2	 	Corporation number
		 	Numéro de la société
	 	 	307730-6
		 	  

	3	 	The articles are amended as follows
		 	Les statuts sont modifiés de la façon suivante
		
		 	The corporation amends the description of classes of shares as follows:
		 	La description des catégories d’actions est modifiée comme suit:
		 	See attached schedule / Voir l’annexe ci-jointe
		
		 	
		 	  

	4	 	Declaration: I certify that I am a director or an officer of the corporation.
		 	Déclaration : J’atteste que je suis un administrateur ou un dirigeant de la société.

  

			
	 	 	Original signed by / Original signé par
	 	 	 Pierre Laurin

	 	 	Pierre Laurin
	 	 	450-781-0115

  

			
		 	  

		 	 Misrepresentation constitutes an offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for
a term not exceeding six months or both (subsection 250(1) of the CBCA).
  
 Faire une
fausse déclaration constitue une infraction et son auteur, sur déclaration de culpabilité par procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un emprisonnement maximal de six mois, ou
l’une de ces peines (paragraphe 250(1) de la LCSA).
  
 You are providing
information required by the CBCA. Note that both the CBCA and the Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.

 
 Vous fournissez des renseignements exigés par la LCSA. Il est à noter que
la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils seront stockés dans la banque de renseignements personnels numéro
IC/PPU-049.

  

			
	

	  	IC 3069 (2008/04)

 Schedule / Annexe 

Description of Classes of Shares / Description des catégories d’action 

Schedule 1 to the Articles of Amendment dated January 25, 2013 containing the description of the share capital of the Corporation is hereby repealed and
replaced by the following Schedule 1. 
 S C H E D U L E  1 

TO THE ARTICLES OF AMENDMENT 
 The Corporation is authorized to
issue an unlimited number of Common Shares and an unlimited number of Preferred Shares issuable in series. 
 COMMON SHARES: 

The Common Shares shall have the following rights, privileges, restrictions and conditions: 

1.    VOTING RIGHTS 
 The holders of Common
Shares shall be entitled to one (1) vote for each Common Share held by them at all meetings of shareholders. 
 2.    LIQUIDATION,
DISSOLUTION OR OTHER DISTRIBUTION OF ASSETS 
 In the event of the voluntary or involuntary liquidation, dissolution,
winding-up or other distribution of assets of the Corporation, the holders of Common Shares shall be entitled to receive the remaining property of the Corporation, pari passu, to the exclusion of the holders
of shares of any other class. 
 3.    DIVIDENDS 

The holders of Common Shares shall be entitled, pari passu, subject to the other provisions of this Schedule 1, to receive such dividends as may be declared by
the directors of the Corporation from time to time. 
 4.    AMENDMENTS SUBJECT TO CONFIRMATION BY ARTICLES OF AMENDMENT 

Subject to confirmation by articles of amendment and the issue of a Certificate of Amendment, the director or directors of the Corporation may, at any time or
times or from time to time, adopt a resolution or resolutions whereby the terms hereof and of the foregoing paragraphs may be altered, amended or repealed or the application thereof suspended in any particular case and changes made in the rights,
privileges, restrictions and conditions attached to one or more classes of shares of the Corporation, but no such resolution shall have any force or effect until after it has been sanctioned by the vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) in value of the voting shares then outstanding and of at least sixty-six and two-thirds percent (66 2/3%) in value of shares of each class affected by such amendment, in each case voting separately as a class at a meeting or meetings specially called for such purpose. 

 PREFERRED SHARES: 

The Preferred Shares are issuable in series and shall have the following rights, privileges, restrictions and conditions: 

1.    The directors of the Corporation may at any time and from time to time issue the Preferred Shares in one or more series, each series
to consist of such number of shares as may before issuance thereof be determined by the directors. 
 2.    Subject to the provisions of
paragraph 10, the holders of the Preferred Shares shall not, as such, have any voting rights for the election of directors or for any other purpose nor shall they be entitled to attend shareholders’ meetings. 

3.    The directors of the Corporation may (subject as hereinafter provided) from time to time fix before issuance the designation,
rights, restrictions, conditions and limitations to be attached to the Preferred Shares of each series including, without limiting the generality of the foregoing, the rate, amount or method of calculation of preferential dividends, whether or not
cumulative or non-cumulative or partially cumulative, and whether such rate, amount or method of calculation shall be subject to change or adjustment in the future, the currency or currencies of payment, the
date or dates and place or places of payment thereof and the date or dates from which such preferential dividends shall accrue, the redemption price and terms and conditions of redemption, the rights of retraction, if any, vested in the holders of
Preferred Shares of such series, and the prices and the other terms and conditions of any rights of retraction, and whether any additional rights of retraction may be vested in such holders in the future, conversion rights (if any) or other
provisions attached to the Preferred Shares of such series, the whole subject to the issue by the Director, Industry Canada, of a certificate of amendment in respect of articles of amendment in prescribed form to designate a series of shares. 

4.    When any fixed cumulative dividends or amounts payable on a return of capital are not paid in full, the Preferred Shares of all
series shall participate rateably in respect of such dividends including accumulations, if any, in accordance with the sums which would be payable on the Preferred Shares if all such dividends were declared and paid in full, and on any return of
capital in accordance with the sums which would be payable on such return of capital if all sums so payable were paid in full. 

5.    The Preferred Shares shall be entitled to preference over the other classes of shares of the Corporation with respect to the payment
of dividends and may also be given such other preferences over the other classes of shares of the Corporation as may be fixed by the directors of the Corporation as to the respective series authorized to be issued. 

6.    The Preferred Shares of each series shall rank on a parity with the Preferred Shares of every other series with respect to priority
in payment of dividends and in the distribution of assets in the event of liquidation, dissolution or winding-up of the Corporation whether voluntary or involuntary. 

 7.    In the event of the liquidation, dissolution or
winding-up of the Corporation or other distribution of assets of the Corporation among shareholders for the purpose of winding-up its affairs, the holders of the
Preferred Shares shall, before any amount shall be paid to or any property or assets of the Corporation distributed among the holders of the other classes of shares of the Corporation, be entitled to receive (i) an amount equal to the amount
paid up on such shares, together with, in the case of cumulative dividends, all unpaid cumulative dividends (which for such purpose shall be calculated as if such cumulative dividends were accruing from day to day for the period from the expiration
of the last period for which cumulative dividends have been paid up to and including the date of distribution) and, in the case of non-cumulative dividends, all declared and unpaid non-cumulative dividends, and (ii) if such liquidation, dissolution, winding-up or distribution shall be voluntary, an additional amount equal to the premium, if any,
which would have been payable on the redemption of the said Preferred Shares, respectively, if they had been called for redemption by the Corporation on the date of distribution and, if said Preferred Shares could not be redeemed on such date, then
an additional amount equal to the greatest premium, if any, which would have been payable on the redemption of said Preferred Shares, respectively. 

8.    No dividends shall at any time be declared or paid on or set apart for payment on any shares of the Corporation ranking junior to
the Preferred Shares unless all dividends up to and including the dividend payable for the last completed period for which such dividends shall be payable on each series of Preferred Shares then issued and outstanding shall have been declared and
paid or set apart for payment at the date of such declaration or payment or setting apart for payment on such shares of the Corporation ranking junior to the Preferred Shares nor, unless any such requirement is waived as part of the conditions,
restrictions and limitations attached to a particular series of Preferred Shares, shall the Corporation call for redemption or redeem or purchase for cancellation or reduce or otherwise pay off any of the Preferred Shares (less than the total amount
then outstanding) or any shares of the Corporation ranking junior to the Preferred Shares unless all dividends up to and including the dividend payable for the last completed period for which such dividends shall be payable on each series of the
Preferred Shares then issued and outstanding shall have been declared and paid or set apart for payment at the date of such call for redemption, purchase, reduction or other payment. 

9.    The Preferred Shares of any series may be purchased for cancellation or made subject to redemption by the Corporation at such times
and at such prices and upon such other terms and conditions as may be specified in the rights, privileges, restrictions and conditions attached to the Preferred Shares of such series as set forth in the resolution of the board of directors of the
Corporation and certificate of amendment relating to such series. 
 10.    The provisions of paragraphs 1 to 9, inclusive, and of this
paragraph 10 may be deleted or varied in whole or in part by a Certificate of Amendment, but only with the prior approval of the holders of the Preferred Shares given as hereinafter specified in addition to any other approval required by the
Canada Business Corporations Act (or any other statutory provision of like or similar effect, from time to time in force). The approval of the holders of the Preferred Shares with respect to any and all matters hereinbefore referred to may be given
by at least 2/3 of the votes cast at a meeting of the holders of the Preferred Shares duly called for that purpose and held upon at least 21 days’ notice at which the holders of a majority of the outstanding Preferred Shares are present or
represented by proxy. If at any such meeting the holders of a majority of the outstanding Preferred Shares are not present or represented by proxy within one-half hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being not less than 30 days later 

 
and to such time and place as may be appointed by the chairman and not less than 21 days’ notice shall be given of such adjourned meeting but it shall not be necessary in such notice to
specify the purpose for which the meeting was originally called. At such adjourned meeting the holders of Preferred Shares present or represented by proxy may transact the business for which the meeting was originally called and a resolution passed
thereat by not less than 2/3 of the votes cast at such adjourned meeting shall constitute the authorization of the holders of the Preferred Shares referred to above. The formalities to be observed in respect of the giving of notice of any such
meeting or adjourned meeting and the conduct thereof shall be those from time to time prescribed by the by-laws of the Corporation with respect to meetings of shareholders. On every poll taken at every such
meeting or adjourned meeting every holder of Preferred Shares shall be entitled to one vote in respect of each Preferred Share held. 
 SERIES A PREFERRED
SHARES 
 The Series A Preferred Shares shall, in addition to the rights, privileges, restrictions and conditions attached to the Preferred Shares as a
class, carry and be subject to the following designations, rights, privileges, restrictions and conditions: 
 Section 1. INTERPRETATION 

(1)    Defined Terms. The following definitions and interpretation rules apply in these Series A Preferred Share Terms: 

Business Day means a day, other than a Saturday or Sunday, on which banks in Montreal, Québec are open for the general transaction of business. 

Canadian Securities Laws means all applicable securities laws in each of the provinces and territories of Canada emanating from Governmental Authorities
including the respective rules and regulations made thereunder together with applicable published national and local instruments, policy statements, notices, blanket rulings and orders of the Securities Commissions, all discretionary rulings and
orders, if any, of the Securities Commissions and the TSX Rules. 
 CBCA means the Canada Business Corporations Act. 

Change of Control Event means the occurrence of any of the following events: (i) a capital reorganization of the Corporation, (ii) a consolidation,
amalgamation, arrangement or merger of the Corporation with or into any other person (other than an affiliate of the Corporation); (iii) a sale, lease, exclusive license, transfer, exchange or other disposition of all or substantially all or
conveyance of the property directly or indirectly owned or held by the Corporation to any other person (other than an affiliate of the Corporation); (iv) the occurrence of any transaction or event as a result of which any person (or group of
persons) purchases or acquires legal or beneficial ownership, either directly or indirectly, of more than 50% of the voting power of the outstanding voting securities of the Corporation; (v) a liquidation, dissolution or winding-up of the Corporation; or (vi) another similar transaction. 
 Common Shares means the common shares in the
capital of the Corporation. 

 Control, Controlling or Controlled means, in respect of a particular person, the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ability to exercise voting power, by contract or otherwise (excluding, for avoidance of doubt, solely on account of any
changes in management or the board of directors) made from time to time). 
 Governmental Authority means any United States, Canadian or other:
(a) multinational, federal, provincial, state, regional, municipal, local or other government, governmental or public department, central bank, court, tribunal, arbitral body, bureau or agency, domestic or foreign; (b) any subdivision,
agent, commission, board, or authority of any of the foregoing; or (c) any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing, and any stock exchange
or self-regulatory authority and, for greater certainty, includes the Securities Commissions, the TSX and Market Regulation Services Inc. 
 Holders means
the holders of the Series A Preferred Shares. 
 Law means Canadian Securities Laws, US Securities Laws and all other statutes, regulations, statutory
rules, orders, by-laws, codes, ordinances, decrees, the terms and conditions of any grant of approval, permission, authority or license, or any judgment, order, decision, ruling, award, policy or guideline, of
any Governmental Authority, and the term applicable with respect to such Laws and in the context that refers to one or more persons, means that such Laws apply to such person or persons or its or their business, undertaking, property or securities
and emanate from a Governmental Authority having jurisdiction over the person or persons or its or their business, undertaking, property or securities. 

Preferred Share Terms means the rights, privileges, restrictions and conditions attached to the Preferred Shares as a class. 

Redeem or Redeemable or Redemption means the redemption of Series A Preferred Shares, in accordance with these Series A Preferred Share Terms. 

Redemption Amount means the consideration per Common Share (cash or otherwise), received by some or all holders of Common Shares upon the occurrence of a
Change of Control Event. If the holders of Common Shares have the right to elect the kind or amount of consideration receivable upon the occurrence of a Change of Control Event, then the Holders shall have the right to make a similar election upon
redemption with respect to the securities or property that the Holder will receive upon redemption. 
 Redemption Date means the date that Series A
Preferred Shares are Redeemed, in accordance with these Series A Preferred Share Terms, which, for greater certainty, must be concurrently to, or after, the effective date of a Change of Control Event. 

Redemption Notice has the meaning given to it in Section 5(2). 

Securities Commissions means, collectively, the securities commissions or other securities regulatory authorities in each of the provinces and territories of
Canada in which the Corporation is a reporting issuer. 
 Series A Preferred Share Terms the rights, privileges, restrictions and conditions attached to the
Series A Preferred Shares as a series. 

 TSX means the Toronto Stock Exchange. 

TSX Rules means the TSX Corporation Manual. 
 US Securities Laws
means all applicable U.S. federal and state securities laws including the respective rules and regulations made thereunder together with applicable rules, policies, notices, discretionary rulings and orders issued by applicable securities regulatory
authorities having application, all as the same are in effect at the date hereof. 
 (2)    Where a Redemption Date falls on a day that
is not a Business Day, the relevant Redemption shall occur on the day that is the next day that is a Business Day. 
 Section 2. LIQUIDATION,
DISSOLUTION OR OTHER DISTRIBUTION OF ASSETS 
 In the event of the voluntary or involuntary liquidation, dissolution,
winding-up or other distribution of assets of the Corporation, the Holders shall be entitled to receive property of the Corporation, with a value that equals to the amount that would have been received had the
Holders been pari passu with the holders of Common Shares with respect to the remaining property of the Corporation (grossed up to include the Holders), such amount distributable to the Holders in priority to the distribution of the remaining
property of the Corporation to the holders of Common Shares. 
 Section 3. DIVIDENDS 

The Holders shall be entitled, pari passu with the holders of Common Shares, to receive such dividends as may be declared by the directors of the Corporation
on the Common Shares from time to time. 
 Section 4. RESTRICTIONS ON TRANSFER 

The Holders may not transfer, sell or trade the Series A Preferred Shares, except to affiliates of Holders, an “accredited investor” (as such term is
defined in National Instrument 45-106 – Prospectus Exemptions) or otherwise permitted under Canadian Securities Laws or US Securities Laws. For greater certainty, this provision does not restrict or
otherwise limit the Holders’ right to pledge, mortgage, hypothecate or encumber the Series A Preferred Shares that it holds. 
 Section 5.
REDEMPTION UPON A CHANGE OF CONTROL EVENT 
 (1)    General. Each Series A Preferred Share shall be redeemed by the Corporation upon the
occurrence of a Change of Control Event in accordance with this Section 5, to the extent permitted by Law. 
 (2)    Notice of
Change of Control Event from Corporation. The Corporation shall promptly give notice to the Holders of the occurrence, or the upcoming occurrence, of a Change of Control Event, it being understood that the failure by the Corporation to give such
notice to the Holders shall not in any way, impact, impair or affect the remedies available to the Holders upon the occurrence of a Change of Control Event. 

 (3)    Redemption Notice from Holders. Upon receipt of a notice of the occurrence of a
Change of Control Event in accordance with Section 5(2), each Holder may send a written Redemption notice to the Corporation’s registered office (the “Redemption Notice”) not less than five (5) Business Days prior to the
Redemption Date. Each Redemption Notice shall state: 
 (a)    the number of Series A Preferred Shares held by the Holder that the
Corporation shall Redeem on the Redemption Date; 
 (b)    the Redemption Date; 

(c)    the method of payment to the Holder and payment details; 

(d)    the form of consideration (cash or otherwise) to the extent an election is available to the holders of Common Shares; and 

(e)    if the Holder holds shares in certificated form, that the Holder is to surrender to the Corporation, in the manner and at the place
designated, its certificate or certificates representing the Series A Preferred Shares to be Redeemed. 
 (4)    Redemption. The
Corporation shall pay the Holders the Redemption Amount, which shall be no later than five (5) Business Days after the Corporation has received the Redemption Notice. No Redemption under this Section 5 shall occur until a Redemption Notice
shall have been delivered by the Holders under this Section 5. 
 (5)    Surrender of Certificates; Payment. On or before the
applicable Redemption Date, each Holder shall, if such Holder holds the Series A Preferred Shares in certificated form, surrender the certificate or certificates representing such shares to the Corporation, in the manner and at the place designated
in the Redemption Notice, and thereupon the Redemption Amount for such shares shall be payable to the order of the person whose name appears on such certificate or certificates as the owner thereof. In the event that less than all of the Series A
Preferred Shares represented by a certificate are Redeemed, a new certificate, instrument, or book entry representing the unredeemed Series A Preferred Shares shall promptly be issued to such Holder. 

(6)    Additional Rights of the Holders upon a Change of Control Event. In addition to the remedies set out in this Section 5 upon
the occurrence or existence of any Change of Control Event, the Holder may exercise any other right, power or remedy granted to it by the Preferred Share Terms, these Series A Preferred Share Terms or otherwise permitted to it by Law, including by
suit in equity and/or by action at Law. 
 (7)    Rights Subsequent to Redemption. If the Redemption Notice shall have been duly given,
and if on the Redemption Date the Redemption Amount payable upon Redemption of all of the Series A Preferred Shares is paid or tendered for payment, then notwithstanding that any certificates evidencing any of the Series A Preferred Shares so called
for Redemption shall not have been surrendered and all rights with respect to such shares shall forthwith after the Redemption Date terminate, except only the right of the Holders to receive the Redemption Amount without interest upon surrender of
any such certificate or certificates therefor. 

 Section 6. REDEEMED OR OTHERWISE ACQUIRED SHARES 

Any Series A Preferred Shares that are Redeemed or otherwise acquired by the Corporation or any of its subsidiaries shall be automatically and immediately
cancelled and shall not be re-issued. 
 Section 7. WAIVER 

Any of the rights, powers, preferences and other terms of the Series A Preferred Shares set forth herein may be waived on behalf of the Holders by the
affirmative written consent of the Holders. 
 Section 8. NOTICES 

Any notice required or permitted to be given to the Holders shall be mailed, postage prepaid, to the post office address last shown on the records of the
Corporation, or given by electronic communication in compliance with the provisions of the CBCA, and shall be deemed sent upon such mailing or electronic transmission. 

Section 9. AMENDMENTS 
 These Series A Preferred Share Terms
may be repealed, altered, modified, amended or amplified only with the sanction of the Holders given as specified in the Preferred Share Terms, in addition to any other approval required by the CBCA. 

  

					
	

	 	 Innovation, Science and
 Economic Development
Canada
 Corporations Canada
	  	 Innovation, Sciences et
 Développement
économique Canada
 Corporations Canada

  

			
		
	Certificate of Amendment	 	Certificat de modification
	Canada Business Corporations Act	 	Loi canadienne sur les sociétés par actions

 PROMETIC LIFE SCIENCES INC. 

                    PROMETIC SCIENCES DE
LA VIE INC.                     

Corporate name / Dénomination sociale 

                  
            307730-6
                               

Corporation number / Numéro de société 
  

					
	 I HEREBY CERTIFY that the articles of the above-named corporation are amended under section 178 of the Canada
Business Corporations Act as set out in the attached articles of amendment.
	 		  	JE CERTIFIE que les statuts de la société susmentionnée sont modifiés aux termes de l’article 178 de la Loi canadienne sur les sociétés par actions, tel qu’il est
indiqué dans les clauses modificatrices ci-jointes.

  
 

 
 Raymond Edwards 

 
 Director /
Directeur 
 2019-06-28 

 
 Date of amendment
(YYYY-MM-DD) 
 Date de modification (AAAA-MM-JJ) 
  

  
 

 

					
	

	 	 Innovation, Science and

Economic Development Canada

Corporations Canada
	  	 Innovation, Sciences et

Développement économique Canada

Corporations Canada

  

			
	Form 4	  	Formulaire 4
	Articles of Amendment	  	Clauses modificatrices
	Canada Business Corporations Act	  	Loi canadienne sur les sociétés par
	(CBCA) (s. 27 or 177)	  	actions (LCSA) (art. 27 ou 177)

  

			
	1	 	  
 Corporate name

		 	Dénomination sociale
		 	PROMETIC LIFE SCIENCES INC.
		 	 PROMETIC SCIENCES DE LA VIE INC.

	2	 	Corporation number
		 	Numéro de la société
		 	 307730-6

	3	 	The articles are amended as follows
		 	Les statuts sont modifiés de la façon suivante
		
		 	See attached schedule / Voir l’annexe ci-jointe
		
		 	  

	4	 	Declaration: I certify that I am a director or an officer of the corporation.
		 	Déclaration : J’atteste que je suis un administrateur ou un dirigeant de la société.

  

			
		 	Original signed by / Original signé par
		 	 Patrick Sartore

		 	Patrick Sartore
		 	450-781-0115

			
		 	  

	    	 	Misrepresentation constitutes an offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for a term not exceeding six months or both (subsection 250(1) of the CBCA).
		
		 	 Faire une fausse déclaration constitue une infraction et son auteur, sur déclaration de culpabilité par
procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un emprisonnement maximal de six mois, ou l’une de ces peines (paragraphe 250(1) de la LCSA).

 
 You are providing information required by the CBCA. Note that both the CBCA and the
Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.

 
 Vous fournissez des renseignements exigés par la LCSA. Il est à noter que
la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils seront stockés dans la banque de renseignements personnels numéro
IC/PPU-049.

  

			
	

	 	 IC 3069 (2008/04)

 SCHEDULE 

The articles are amended as follows: 
 All the issued and
outstanding Common Shares of the Corporation are consolidated on the basis of a consolidation ratio of one thousand (1,000) pre-consolidation Common Shares for one (1) post-consolidation Common Share (the
“Consolidation”). 
 Where the Consolidation results in a shareholder of the Corporation being entitled to a fractional Common Share that
is equivalent to less than 75% of a whole post-consolidation Common Share, the holder shall be entitled to receive in exchange for such fractional post-consolidation Common Shares a cash payment equal to the number of
pre-consolidation Common Shares held by such holder multiplied by the average closing price of the pre-consolidation Common Shares on the TSX for the five trading days
immediately prior to July 5, 2019 except for amounts of C$5 or less, which shall be retained for the benefit of the Corporation, such payment to be made on presentation and surrender to the Corporation for cancellation of the certificate or
certificates representing the issued and outstanding pre-consolidation Common Shares or an affidavit of loss in lieu thereof. 

Where the Consolidation results in a shareholder of the Corporation being entitled to a fractional Common Share that is equivalent to 75% or more of a whole
post-consolidation Common Share, the number of post-consolidation Common Shares issued to such shareholder shall be rounded up to the nearest whole number of Common Shares. 

					
	

	 	 Innovation, Science and

Economic Development Canada
 Corporations
Canada
	  	 Innovation, Sciences et
 Développement
économique Canada
 Corporations Canada

  

			
		
	Certificate of Amendment	 	Certificat de modification
	Canada Business Corporations Act	 	Loi canadienne sur les sociétés par actions

                    
                    Liminal BioSciences
Inc.                                        

 Corporate name / Dénomination sociale 

                  
            307730-6                            
   
 Corporation number / Numéro de société 

 

					
	 I HEREBY CERTIFY that the articles of the above-named corporation are amended under section 178 of the Canada
Business Corporations Act as set out in the attached articles of amendment.
	 		  	JE CERTIFIE que les statuts de la société susmentionnée sont modifiés aux termes de l’article 178 de la Loi canadienne sur les sociétés par actions, tel qu’il est
indiqué dans les clauses modificatrices ci-jointes.

  
 

 
 Raymond Edwards 

 
 Director /
Directeur 
 2019-10-03 

 
 Date of amendment
(YYYY-MM-DD) 
 Date de modification (AAAA-MM-JJ) 
  

  
 

 

					
	

	 	 Innovation, Science and
 Economic Development
Canada
 Corporations Canada
	  	 Innovation, Sciences et
 Développement
économique Canada
 Corporations Canada

  

					
		 	Form 4	  	Formulaire 4
	                    	 	Articles of Amendment	  	Clauses modificatrices
		 	Canada Business Corporations Act	  	Loi canadienne sur les sociétés par
		 	(CBCA) (s. 27 or 177)	  	actions (LCSA) (art. 27 ou 177)

  

			
	1	 	  
 Corporate name

		 	Dénomination sociale
		 	PROMETIC LIFE SCIENCES INC.
		 	PROMETIC SCIENCES DE LA VIE INC.
	2	 	  
 Corporation number

		 	Numéro de la société
	 	 	307730-6
	3	 	  
 The articles are amended as
follows

		 	Les statuts sont modifiés de la façon suivante
		
		 	The corporation changes its name to:
		 	La dénomination sociale est modifiée pour:
		 	Liminal BioSciences Inc.
		
		 	
	4	 	  
 Declaration: I certify that I am a
director or an officer of the corporation.

		 	Déclaration : J’atteste que je suis un administrateur ou un dirigeant de la société.

  

			
	 	 	Original signed by / Original signé par
	 	 	 Marie Iskra

	 	 	Marie Iskra
	 	 	450-781-0115

  

			
		  	  
 Misrepresentation constitutes an
offence and, on summary conviction, a person is liable to a fine not exceeding $5000 or to imprisonment for a term not exceeding six months or both (subsection 250(1) of the CBCA).

 
 Faire une fausse déclaration constitue une infraction et son auteur, sur
déclaration de culpabilité par procédure sommaire, est passible d’une amende maximale de 5 000 $ et d’un emprisonnement maximal de six mois, ou l’une de ces peines (paragraphe 250(1) de la LCSA).

 
 You are providing information required by the CBCA. Note that both the CBCA and the
Privacy Act allow this information to be disclosed to the public. It will be stored in personal information bank number IC/PPU-049.

 
 Vous fournissez des renseignements exigés par la LCSA. Il est à noter que
la LCSA et la Loi sur les renseignements personnels permettent que de tels renseignements soient divulgués au public. Ils seront stockés dans la banque de renseignements personnels numéro
IC/PPU-049.

  

			
	

	  	IC 3069 (2008/04)

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