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CLASSIFICATION SHEET

This document relates to the following request:


10 March 2010

References: VCO/GYVN/IAKNQ9610001 M-COAA

Sharpsburg Holdings Limited (Luxembourg) SCS


Heinz Finance (Luxembourg) SARL

I. Key ~opics: SCS-SARJ, structure, Financial on-lending activity, Functional currency, Participation

exemption
2. Name of the advisor : PwC

-----J
__ _

_J

I
I
I

-2:_Corporate group's name, or fund sponsor: Heinz


4. Name of the project: Project Summer
5. Amount intended to be invested: Aeeroximatel)'. USD 5.7 Billion
6. Date of receipt:

BUREAU D'IMPOSITION SOC. 6


t:NTREE

10 MARS 2010

For the attention of Mr Marius Kohl


Administration des Contributions Directes
Bureau d'Imposition des Societes VI
18, rue du Fort Wedell
L - 2982 Luxembourg

PriccwatcrhouseCoopcrs
Socic1e a responsablli1e llmitce
Reviscur d'entrcpriscs
400, route d'Esch

B.P. 1443
L-1014 Luxembourg
Telephone +352 494848-1
Facsimile +-352 494848-2900
www.pwc.com/lu
info@lu.pwc.com

BUREAU D'IMPOSITION SOC. 6

ENTREE

10 March 2010

1 OMARS 2010
References: VCO/GYVN/1AKA/Q96l0001 M-COAA

Sharpsburg Holdings Limited (Luxembourg) SCS


Heinz Finance (Luxembourg) SARL

Dear Mr Kohl,
In our capacity as tax consultant for the Heinz group (the "Group") we have previously
discussed, on November 25, 2009, the tax treatment applicable to the transactions
foreseen/implemented by our client within the scope of Project Summer (the
"Restructuring").
This letter aims at confirming the conclusions reached previously and will serve as a basis for
the preparation of the tax returns of the Luxembourg entities of the Group.

A.

Background

A. l

Background

1.

H.J. Heinz ("Heinz") is an American company headquartered in Pittsburgh,


Pennsylvania, which manufactures food products in several plants located around the
world. Heinz is listed and traded on the New York stock exchange.

A.2

Restructuring

2.

Prior to the restructuring, Heinz did not have any Luxembourg entities.

3.

The relevant steps of the restructuring from a Luxembourg tax perspective together with a
simplified organization chart upon the completion of the restructuring are attached in
Appendix 1.

R.C.S. Luxembourg B 65 477 TVA 1.U 17564447

4.

The scope of the restructuring at this stage included, inter alia, the transfer of two
participations, one in Heinz Canada Holdings ULC ("Heinz Canada") and another in
Heinz Ireland Holdings Ltd ("Heinz Ireland"), to a recently formed Luxembourg
holding company, Heinz Finance (Luxembourg) S.a r.1. ("Lux SARL").

5.

The restructuring also included the incorporation of two Gibraltar companies, Sharpsburg
Holdings Ltd ("GibCol") and Goodwood Holdings Ltd ("GibCo2"), which
subsequently formed a new Luxembourg entity, Sharpsburg Holdings Limited
(Luxembourg) SCS, ("Lux SCS"). Following the completion of the restructuring, Lux
SCS holds 100% of the shares in Lux SARL.

6.

See articles of Association of Lux SARL and Lux SCS respectively in Appendix 2.

B.

Luxembourg tax treatment

8.1

Luxembourg tax residency of Lux SARL

7.

According to Article 159 of the Luxembourg Income Tax Law ("LITL"), capital
companies that have either their registered office or their place of central administration
in Luxembourg are subject to corporate income tax in Luxembourg on their worldwide
profits. Article 159 LlTL provides that a "societe a responsabilite limitee" qualifies as a
capital company.

8.

Lux SARL was formed as a "societe a responsabilit6 limitee". Lux SARL has its statutory
seat in Luxembourg and has its place of central administration in Luxembourg since the
meetings of the boards of managers and shareholder's meetings will regularly and
physically take place in Luxembourg, the management decisions will be effectively taken
in Luxembourg and the accounting records will be kept in Luxembourg.

9.

Consequently, Lux SARL will be considered to be Luxembourg tax resident within the
meaning of Article 159 LITL and within the meaning of the double tax treaties concluded
by Luxembourg. A Luxembourg tax residency certificate for Lux SARL will therefore be
issued by the Luxembourg tax authorities upon request.

B.2 Debt to equity ratio at the level of Lux SARL


10.

It is the practice of the Luxembourg tax authorities to accept that participations held by
Luxembourg companies arc financed by intra-group debt up to 85%.

11.

At this stage, it was foreseen that only two participations were contributed down the
chain to Lux SARL: Participations in Heinz Canada and Heinz Ireland, collectively
referred to as the "Participations".

12.

Upon the completion of the restructuring, the Luxembourg thin-capitalization rules were
fully respected as the participation in Heinz Canada was financed by a maximum of 85%
debt ("USD-NP3").

(2)

8.3 Financial on-lending activities of Lux SARL


13.

Following the transfer of a CAD denominated note receivable towards Heinz Canada
from Lux SCS to Lux SARL ("NPl-CAD") in exchange of a new note payable
denominated in USO ("NP2-USD"), Lux SARL is performing lending activities financed
by borrowings for a nominal amount of approximately USO 1.4 billion.

14.

Considering the financing activities of Lux SARL, and the fact that the financing
structure may potentially result in a foreign exchange I credit exposure at the level of Lux
SARL, the latter will be required to realize an appropriate and acceptable profit margin
on its financing o n-lending activities in view of Articles 56 LITL and 164 (3) LITL.

15.

The net remuneration (after the deduction of all charges incurred by Lux SARL,
including the possible foreign tax credits) earned by Lux SARL in the financing activity
ofNPl-CAD and NP2-USD will be considered as being appropriate as long as it realizes
a minimum net remuneration of 0.0625% calculated on the average principal amount of
NPl-CAD.

16.

The level of the spread may be reviewed if the principal amounts of the loans and
receivables involved in the financial on-lending activity would change significantly.
Additionally, in the absence of any foreign exchange I credit exposure at the level of Lux
SARL in the future, the net taxable margin at the level of the latter may be reduced up to
0.03125%.

8.4 Priority equity allocation at the level of Lux SARL


17.

At a later stage it is intended that Lux SARL performs further financing activities. These
activities will be performed by funds derived from distributions from subsidiaries or new
intra-group loans.

18.

For practical reasons, for corporate income tax, municipal business tax and net wealth tax
purposes, the entirety of the debt at the level of Lux SARL will be considered as
financing by priority other assets than the participations qualifying for the participation
exemption regime. Thus, the participations qualifying for the participation exemption
regime will be deemed to be financed by priority by equity.

19.

The allocation of the sources of financing will be confirmed in a board resolution at the
level of Lux SARL.

8.5

Consecutive transactions

20.

In the framework of the restructuring, the shares of Heinz Canada and Heinz Ireland as
well as NPl-CAD, were transferred down the chain to Lux SARL via the execution of
several consecutive transactions.

21.

Given that all the transactions took place on the same date or within a short time frame
(i.e. a few days), no appreciation in value will be recognized on any of the abovementioned assets. Hence, no taxable capital gain will be recognized in Luxembourg upon
the execution of said transactions.

(3)

B.6 Application of the Luxembourg participation exemption regime


B.6.1 Participation in Heinz Canada
22.

Following the completion of the restructuring steps, Lux SARL owns all of the shares in
the capital of Heinz Canada. Heinz Canada is a British Columbia Unlimited Liability
Company incorporated under the British Columbia Business Corporations Act. For your
infonnation, we enclose a copy of the Articles of Association ("the Articles") of Heinz
Canada in Appendix 3.

23.

Pursuant to the provisions of the Articles and on the basis of the key features to
distinguish between the Luxembourg tax transparent and opaque entities (please refer to
Appendix 4 for further detail in this respect), Heinz Canada will be considered as an
opaque company comparable to a Luxembourg limited liability company. Furthermore,
Heinz Canada is a fully taxable company (i.e. subject to tax at a minimum rate of 10.5%
on a taxable basis similar to a Luxembourg company) resident in Canada.

24.

Based on the characteristics of the preferred shares issued by Heinz Canada, they will be
considered as equity instruments for corporate income tax, municipal business tax and net
wealth tax purposes. Please refer to Appendix 5 for the characteristics and tax treatment
of these preferred shares.

25.

Based on the above, at the level of Lux SARL the participation in Heinz Canada will
benefit from the Luxembourg participation exemption regime on dividends (including
both ordinary shares and preferred shares) and capital gains in accordance with Article
166 LITL and Grand Ducal Decree of 21 December 200 I, provided that the remaining
conditions regarding holding period (12-months) and significance of the participation (at
least 10% or acquisition price of EUR 1.2 Million for dividends and EUR 6 Million and
for capital gains) are fulfilled.

26.

Similarly, the said participation will benefit from the Luxembourg part1c1pation
exemption regime for net wealth tax pursuant to Article 60 of the Property and Securities
Valuation Act.

27.

Furthermore, the recapture rules will apply to interest expenses linked to the financing of
the participation held by Lux SARL in Heinz Canada.

28.

Please refer for further details in Appendix 6.

B.6.2 Participation in Heinz Ireland


29.

The share capital of Heinz Ireland is divided into I 06 ordinary shares.

30.

Prior to the restructuring, Heinz Credit LLC ("HCC") was the beneficial owner of 106
ordinary shares representing the entirety of the share capital of Heinz Ireland as follows:
105 ordinary shares were held directly by HCC while 1 ordinary share was contributed by
HJH Overseas LLC ("HJH"), a Delaware limited liability company, to a Trust to the
benefit of HCC.

(4)

31.

In the scope of the restructuring, the entirety of the beneficial interest of HCC in Heinz
Ireland was transferred, through a series of consecutive share transfers down the chain to
Lux SCS and immediately after to Lux SARL.

32.

Therefore, upon the completion of the restructuring steps, Lux SARL received the
economical ownership of 106 ordinary shares of Heinz Ireland: 105 ordinary shares
directly held by Lux SARL and I ordinary share contributed by HJH to a Trust in the
benefit of Lux SARL.

33.

Under article 11 of the Adaptation Law (Steueranpassungsgesetz) the concept of"owner"


for tax purposes is the person/entity that holds the economical ownership of a good. In
other words, goods that have been transferred under a fiduciary agreement arc
considered, for Luxembourg tax purposes, owned by the Principal as long as he preserves
the economical rights over such goods, independently of the legal property having been
transferred.

34.

Based on the above, Lux SARL will be considered to hold for corporate income tax,
municipal business tax and net wealth tax purposes the entirety of the I 06 ordinary shares
in Heinz Ireland. Accordingly, any dividends paid by Heinz Ireland, or capital gains
derived upon the disposal of the shares in Heinz Ireland, will be treated as income in the
hands of Lux SARL only.

35.

Moreover, given that Heinz Ireland is a company covered by Article 2 of the EU


Parent/Subsidiary Directive, the Luxembourg participation exemption regime on
dividends received and capital gains will be available in accordance with Article 166
LITL and Grand Ducal Decree of 21 December 2001 provided that the remaining
conditions regarding the holding period ( 12-months) and significance of the participation
(at least 10% or acquisition price of EUR 1.2 Million for dividends and EUR 6 Million
for capital gains) arc fulfilled.

36.

Similarly, the said participation will benefit from the Luxembourg participation
exemption regime for net wealth tax pursuant to Article 60 of the Property and Securities
Valuation Act.

B.7 W ithholdin g tax on dividends payments made by L ux SARL to Lux SCS


37.

Dividend payments made by Lux SARL to Lux SCS will be regarded for Luxembourg
tax purposes as payments made directly to the non-resident shareholders of Lux SCS, i.e.
GibCo 1 and GibCo2.

38.

Accordingly, under Article 147 LITL, the dividends attributed to GibCol and GibCo 2
will be exempt from withholding tax at the level of Lux SARL, provided that on the date
on which the income is made available, GibCo 1 and GibCo2 (undertake to) hold (through
Lux SCS) a participation of at least I 0%, or with an acquisition price 9f at least EUR 1.2
million in the share capital of Lux SARL, for an uninterrupted period of at least 12
months.

(5)

39.

For further analysis, please refer to Appendix 6 - Section 1: Participation exemption


regime for withholding tax and Appendix 7 - Section D: Luxembourg sourced income
and withholding tax.

B.8 Tax treatment of Lux SCS and its partners


40.

Lux SCS is considered as a tax transparent entity for Luxembourg tax purposes and will
therefore n'ot be subject to corporate income tax or net wealth tax in its own name.

41.

Lux SCS will not have any office space, equipment, bank account or any other tangible
presence in Luxembourg. The activity of Lux SCS will be limited to the mere holding of
the shares in Lux SARL and the holding of NP2-USD and NP3-USD notes. In view of
the above, Lux SCS will not be deemed to operate a commercial activity in Luxembourg
(through a permanent establishment).

42.

Neither of the shareholders of Lux SCS (GibCo 1 and GibCo2) arc resident in
Luxembourg and they do not hold their interests in Lux SCS through a permanent
establishment in Luxembourg. Given that neither the shareholders nor Lux SCS will have
any tangible presence in Luxembourg, GibCo l and GibCo2 will not be deemed to have a
fixed place of business in Luxembourg.

43.

Accordingly, neither Lux SCS nor its partners will be subject to corporate income tax,
municipal business tax and net wealth tax in Luxembourg.

44.

Please refer to Appendix 7 for further analysis of Lux SCS and its shareholders.

B.9 Functional currency of Lux SCS and Lux SARL


45.

The statutory accounts and share capital of both Lux SCS and Lux SARL are
denominated in USD. For Luxembourg income tax and net wealth tax purposes USD will
be the functional currency of Lux SCS and Lux SARL as from the date of their
incorporation.

46.

This implies that as of the financial year 2009 the tax returns of Lux SCS and Lux SARL
will be entirely established in USD on the basis of the USD denominated statutory
accounts of these respective companies. Only the final taxable basis of both Lux SCS and
Lux SARL will be converted in EUR to compute the tax due, by using the EUR I USD
exchange rate prevailing as of the closing date of the relevant financial year of these
respective companies.

47.

Given that Lux SARL holds both a NPl-CAD receivable and a NP2-USD payable, any
foreign exchange gain on this financing activity will be fully taxable in Luxembourg.
Likewise, any foreign exchange losses arising from the transactions will be tax
deductible.

(6)

48.

As it is envisaged that Lux SARL will conclude hedging agreements covering some of
the potential foreign exchange risks (i.e. hedging agreements will cover interest on NP 1CAD but not the principal amount), foreign exchange gains I losses arising at the level of
Lux SARL in respect of the interest on NP I-CAD will not create Luxembourg tax
consequences.

49.

If a later stage the hedging agreement is extended to cover as well the principal amount of
NPl -CAD, no Luxembourg tax consequences will be generated at the level of Lux
SARL.

B.10 Net Wealth Tax for Lux SARL


50.

Pursuant to paragraph 1 (2a) of the Net Wealth Tax ("NWT") law, Luxembourg capital
companies are subject to net wealth tax on their net operating assets as determined on l st
January of the year for which the net wealth tax is computed.

51.

Accordingly and although Lux SARL has an accounting year ending April 30 of each
year, Lux SARL will use December 31 as the closing date for purposes of determining its
net wealth tax liability.

52.

Given that Lux SARL was incorporated on December 2, 2009, the net wealth tax for
20 I 0 will be computed on the basis of the opening balance sheet as of the date of its
incorporation.

53.

In future years and given the fact that Lux SARL has accounting years different from the
calendar years, the net wealth tax for Lux SARL will be computed on the basis of interim
accounts as at December 31 of the accounting year in question.

54.

According to 14 of Property and Securities Valuation Act ("BewG"), receivables


should be reported at their nominal value, unless specific circumstances justify a higher
or a lower valuation. Given that Lux SARL should be seen as intermediary financing
entity and its financing on-lending activities should always be preserved, economically
speaking, at all times (i.e., having a perfect matching between the receivable and the
liability) and NP I-CAD receivable represent a long term asset it will be acceptable that
for purposes of 14 BewG there will be no revaluation of NPl -CAD to a value higher
than its acquisition value.

(7)

Taking into account the importance of the above for our client, we kindly ask you to
communicate us written confirmation of the above treatment or your remarks on the
contemplated structure.
We remain at your disposal should you need any further information and would like to thank
you for the attention that you will give to our request.

Appendix 1:
Appendix 2:
Appendix 3:
Appendix 4:
Appendix 5:
Appendix 6:
Appendix 7:

Relevant steps an
mplified organization chart upon the completion of the restructuring.
Articles of Association of Sharpsburg Holding Limited (Luxembourg) SCS and Heinz Finance
(Luxembourg) SARL.
Articles of Association of Heinz Canada Holdings, ULC.
Qualification of Heinz Canada Holdings ULC as an opaque entity.
Analysis of Preferred shares issued by Heinz Canada Holdings ULC.
Luxembourg participation exemption regime.
Tax treatment of Lux SCS and its shareholders.

171is tax agreement is based on the facts as presented lO PricewaterhouseCoopers S.a r.I. as at the date the advice was given. 71le agreement is

dependent on specific facts and circumstances and may not be appropriate lO any party other than the one for which it was prepared. 111is tax
agreement was prepared with only the interests of Heinz in mind, and was not planned or carried out in contemplation ofany use by any other
party. PricewaterhouseCoopers

S.a r.I., its partners, employees and or agents, neither owe nor accept any duty ofcare or any responsibility to

any other party, whether in contract or in tort (including without limitation, negligence or breach ofstatutory duty) however arising. and shall
not be liable in respect ofany loss, damage or expense of whatever nature which is caused to any other party.

(8)

Appendix 1
Relevant steps of the restructuring
For the purpose of this restructuring, a series of transactions have been undertaken. We
describe below the steps relevant from a Luxembourg tax perspective:
STEP 1: On January 21, 2009, following the amalgamation of two group companies, Heinz
Canada Holdings Ltd ("Heinz Canada") was fonned. Shortly thereafter, on January 22, 2009,
Heinz Canada converted into a British Columbia Unlimited Liability Company.

STEP 2: On January 23, 2009 Heinz Credit US ("HCC") lent CAD 1.5 billion to Heinz
Canada. Heinz Canada issued a note ("NPl -CAD") to HCC to evidence its indebtedness.
STEP 3: On November 16, 2009, HCC incorporated a new Gibraltar limited company,
Sharpsburg Holdings Ltd ("GibCol", or "Gerant Commandite"). Subsequently, on November
19, 2009, Sharpsburg Holdings Ltd incorporated a new Gibraltar limited company, Goodwood
Holdings Ltd ("GibCo2", or "limited shareholder").
STEP 4: On December 2, 2009 GibCol and GibCo2 fonned Sharpsburg Holdings Limited
(Luxembourg) SCS ("Lux SCS") with a share capital of USD 25,000. GibCo2 owns 85% and
GibCo1owns15% of the shares in Lux SCS.
STEP 5: On the same day Lux SCS formed Heinz Finance (Luxembourg) SARL ("Lux
SARL") with a share capital of USD 25,000.
Contributions down the chain (Step 6 to Step 11): The contributions down the chain of both
(i) Heinz Canada shares and (ii) NPl-CAD, to Lux SARL were perfonned as follows:

i. All the transactions were perfonned at fair market value;


ii. All the transactions were denominated in USD. The exchange rate agreed by the
parties was equivalent to a fixed exchange rate of USD 1 = CAD 0.936330 applicable
on December 18, 2009.
STEP 6: On December 21, 2009 HCC transferred all the shares in Heinz Canada and
NPl-CAD with an aggregate total value of USO 5.5 billion to GibCol in exchange for
additional shares equal to USD 5.5 billion.
STEP 7: On December 22, 2009 GibCo 1 transferred a percentage of Heinz Canada and
NPl-CAD (sufficient to equate to 85% ownership in Lux SCS) to GibCo2 in exchange for
additional shares equal to USD 4,675,000,000.
STEP 8: On December 23, 2009 GibCo I transferred the remaining shares of Heinz Canada
(not transferred to GibCo2 in the previous step) to Lux SCS in exchange for additional shares
equal to a 15% interest (i.e. USD 825,000,000).

(9)

fJR/CEWAifRf-IOUsE(mPERS fl
STEP 9: On the same day GibCo2 transferred its interest in Heinz Canada and NPl -CAD
received in Step 7 to Lux SCS in exchange for additional shares equal to an 85% interest (i.e.
USO 4,675,000,000).

STEP 10: On the same day Lux SCS transferred NPl-CAD received from GibCol and GibCo2
in the preceding steps to Lux SARL in exchange for a new note payable denominated in USD
in amount ofUSD 1,405,010,622 ("NP2-USD")
STEP 11: On the same day Lux SCS transferred the shares of Heinz Canada received from
GibCo 1 and GibCo2 in the preceding steps to Lux SARL in exchange for additional shares
equal to USD 614,248,407 and a new note payable denominated in USD in amount of
USO 3,480,740,971 ("NP3-USD")

Contributions down the chain (Step 12 to Step 16): The contributions down the chain of the
Heinz Ireland shares were performed as follows:
i. All the transactions were performed at fair market value;
ii. The value of the Heinz Ireland shares was denominated at USD 190,000,000;
iii. All the transactions were denominated in USD.

STEP 12: On February 15, 2010, HCC contributed all of its shares in Heinz Ireland ("Ireland
shares") 1 to GibCo 1 as equity (no new shares of Gibco 1 were issued).
STEP 13: On the same day, GibCol transferred 85% of the Ireland shares2 to GibCo2 as equity
(no new shares of GibCo2 were issued).

STEP 14: On February 16, 2010, GibCo 1 transferred its remaining 15% interest in Heinz
Ireland3, to Lux SCS in exchange for the issuance of one additional share and share premium.

STEP 15: On the same day, GibCo2 transferred its 85% interest in Heinz Ireland4 to Lux SCS
in exchange for the issuance of one additional share and share premium.

STEP 16: On the same day, Lux SCS contributed the Ireland shares received5 from GibCol
and GibCo2 in the immediately preceding steps to Lux SARL in exchange for the issuance of
one additional share and share premium.
As a result of this transaction Lux SARL received the economical ownership of 106 ordinary
shares of Heinz Ireland: 105 ordinary shares directly owned by Lux SARL and 1 ordinary share
contributed by HJH to a Trust in the benefit of Lux SARL.

Prior to the restructuring steps, HCC was the beneficial owner of the entirety I 06 ordinary shares in the share capital in Heinz
Ireland: I 05 ordinary shares were held directly by I ICC while I ordinary share was contributed by HJ H Overseas LLC ("HJI I")
to a Trust to the benefit of HCC.
2

Ireland shares were represented by 90 ordinary shares directly owned GibCo I.

The interests in Heinz Ireland were represented by 15 ordinary shares directly owned by GibCo I and I ordinary share
contributed by HJH to a Trust to the benefit of GibCo I.
4

The interests in Heinz Ireland were represented by 90 ordinary shares directly owned by GibCo2.

Ireland shares were represented by I 05 ordinary shares directly owned by Lux SCS and one ordinary share contributed by
HJH to a Trust to the benefit of Lux SCS.

(10)

Simplified organization chart of the restructuring

Heinz

Heinz Transatlantic

Heinz Credit LLC (US)

GIB 1

100 %
GIB2

15 %
85%
' '\

NP2-USD
Lux SARL

I
I

NP3-USD

,,
NP1-CAD ',

85%-15% Debt-E

ity

100% Equity-financed

''

Heinz Holdings Canada

Heinz Ireland Holdings Ltd

Worldwide subsidiaries

Other Irish companies

(11)

Appendix 2
Articles of Association of Sharpsburg Holdings Limited (Luxembourg) SCS
Articles of Association of Heinz Finance (Luxembourg) SARL

(12)

Certified to be a true and rlht .


Of tho '
" I O,v
or gtnal by the unders"'" '"J
Henri Hl:!LLINCKX, notary pt.w11c
' '"
rosldlng In luxambourg.
Luxembourg, trie ()

Sharpsburg Holdings Limited (Luxembourg) SCS


Societe en commandite simple
Siege social:

5 rue Guillaume Kroll,


L-1882 Luxembourg

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CONSTITUTION DE SOCIETE DU 2 DECEMBRE 2009

No

In the year two thousand and nine, on the second day of December.
Before Us, MaTtre Henri Hellinckx , notary residing in Luxembourg.
THERE APPEARED:
1.Sharpsburg Holdings Limited, a company incorporated under the laws of Gibraltar
and having its registered office at 57/63 Line Wall Road, Gibraltar, duly represented by
John Crowe, executive, residing in 4 Linden Place, Sewickley PA 15143, USA, acting in
his capacity as director of Sharpsburg Holdings Limited; and
2.
Goodwood Holdings Limited, a company incorporated under the laws of
Gibraltar and having its registered office at 57/63 Line Wall Road, Gibraltar, duly
represented by John Crowe, executive, residing in 4 Linden Place, Sewickley PA 15143,
USA, by virtue of a power of attorney, given in Gibraltar on 1st December 2009.
The said proxy, after having been signed ne varietur by the appearing persons and
the undersigned notary, shall remain attached to the present deed to be filed at the
same time with the registration authorities.
Such appearing parties, acting in their respective capacities, have requested the
undersigned notary to record the following articles of incorporation (the Articles) of a
company, which they declare to establish as follows:
Article 1.
There exists among the subscribers of the unlimited shares (parts de commandite)
and the limited shares (parts de commanditaire) and all those persons or entities who
may become owners of the shares hereafter issued, a company in the form of a
societe en commandite simple (the Company).
Sharpsburg Holdings Limited shall be the general partner (gerant commandite) of
the Company (the Gerant Commandite).
The holder(s) of limited shares (associe(s) commanditaire(s)) shall be referred to as
the Limited Shareholder(s ), the holder(s) of unlimited shares (associe(s)
commandite(s)) shall be referred to as the Unlimited Shareholder(s) and th9 holders

of the limited shares and the unlimited shares will be referred to Individually as a
Shareholder and collectively as the Shareholders.
Article~.

The Company is incorporated for an unlimited period of time. The Company shall not
terminalo by (i) tht3 dissolution, bankruptcy or insolvency, or any similar procedure as
well as fhe death or the suspension of civil rights of any Unlimited Shareholder or (ii)
the resignation as Gerant Commandlte of an Unlimited Shareholder.
'

Article 3.
The Company exists under the name of "Sharpsburg
(Luxembourg) SCS".

Holdings

Limited

Article 4.
The object of the Company Is to carry out all transactions pertaining directly or
indirectly to the acquisition of participating interests in any Luxembourg or foreign
companies belonging to the members of the same group of companies to which the
Company belongs in whatever form and the administration, management, control and
development of those participating interests.
The Company may borrow in any form, except by way of public offer. Furthermore, the
Company may undertake financing operations by and through transactions pertaining
directly or indirectly to the maintenance, administration, management, control and
development of participating interests with companies belonging to the members of the
same group of companies to which the Company belongs, including, without limitation,
the granting of loans and facilities to these companies, the granting of any assistance,
advanc0s or guarantees to these companies.
The Company may also carry out any such transactions, which are directly or indirectly
connected with its corporate purpose.

Article 5.
The registered office of the Company is established in Luxembourg-City, Grand
Duchy of Luxembourg. Branches or other offices may be established either in
Luxembourg or abroad by a resolution of the Gerant Commandit.e.
In the event that the Gerant Commandite determines that extraordinary political,
economic or social developments have occurred or are imminent that interfere or are
likely to interfere with the normal activities of the Company at its registered office, or
with the ease of communication between such office and persons abroad, the
registered office may be temporarily transferred abroad until the complete cessation
of these extraordinary circumstances; such temporary measures shall have no effect
on the nationality of the Company which, notwithstanding the temporary transfer of its
registered office, will remain a Luxembourg societe en commandite simple.

Article 6.
The subscribed and issued capital of the Company is set at USO 25,000 (twenty five
thousand US Dollars) and represented by 25,000 (twenty five thousand) shares with a
2

par value of USO 1 (one .US D9llar) each, of which 21,000 (twenty one thousand)
shares are A shares held by the Limited Shareholder(s) (the A Shares or Limited
Shares) (parts de commanditaire), each A Share being not paid lij), and 4,000 (four
thousand) shares are B shares held by the Gerant Commandite (ttie B Shares or
Unlimited Shares) (parts de command/le), each B Share being notpaid up.
The Unlimited Shares and the Limited Shares will be individually referred to as a
Share and collectively as the Shares.
New shareholders may be admitted only with the unanimous consent of all the
Shareholders.
The issued capital of the Company may be increased or reduced by a decision of the
general meeting of the Shareholders.
The Company's subscribed capital is divided into A and B Shares which have (on a
per part basis) equal voting, dividend and liquidation rights. The A Shares and the B
Shares shall always vote collectively and never vote as a class.
Article 7.

The Company recognises only one holder per Share; in case a Share is held by more
than one person, the Company has the right to suspend the exercise of all rights
attached to that Share until one person has been appointed or designated by the joint
holders as the sole owner in relation to the Company.
Unpaid amounts, if any, on issued and outstanding Shares may be called at any time
at the discretion of the Garant Commandite, provided however that calls shall be
made on all the Shares in the same proportion and at the same time. Any sum, the
payment of which is in arrear, automatically attracts interest in favour of the Company
at the rate of ten per cent. ( 10%) per year calculated from the date when the payment
was due until the date of the actual payment. Each time unpaid amount of the par
value of the Shares is paid up, the paid up amount of the Shares shall increase
automatically and article 6 of these Articles shall be amended accordingly .
Shares are transferable, may be pledged or otherwise encumbered only with the
unanimous consent of all the Shareholders. Transfers of Shares shall be made in
accordance with article 1690 of the Luxembourg Civil Code.
A share register will be kept at the registered office of the Compar.y, where it will be
available for inspection by any Shareholder of the Company. Such register shall set
forth the name of each Shareholder, its residence or elected domicile, the number of
Shares held by it, the amounts paid in on such Shares (if any), the transfer(s) of
Shares and the dates of such transfer(s). The ownership of the Shares will be
established by the entry in the share register.
Article 8.

The holders of Limited Shares are only liable for the debts and losses of the Company
up to the amount of the capital contributions that they have promised to make to the
Company.

...
The holders of Unlimited Shares shall be jointly and severally liable with the Company
for the obligations of the Company and their liability shall be unlimited.
Article ;,.

An annual general meeting of the Shareholders approving the annual accounts of the
Compar.y shall be held in Luxembourg at the registered office of the Company, or at
~uch other place in Luxembourg as may be specified in the notice of meeting.
Other ordinary or extraordinary meetings of the Shareholders may be held at such
place ari'd time as may be specified in the respective notices of meeting.

Resolutions of Shareholders can, instead of being passed at general meetings, be


passed in writing by all the Shareholders. In this case, each Shareholder shall be sent
an explicit draft of the resolution(s) to be passed, and shall vote in writing (such vote
to be evidenced by letter or telefax or electronic mail (e-mail) transmission). For the
avoidance of doubt, any reference in these Articles to resolutions taken at a general
meeting of the Shareholders shall also include a reference to resolutions of the
Shareholders passed in writing in accordance with this article 9.
,

Article 10.

The notice period with respect to the invitation to a Shareholders' meeting is of eight
(8) days prior to such meeting as set forth in article 11 and the quorum, which shall
apply with respect to the meetings of the Shareholders consists in the presence or
represe:1tation of fifty per cent. (50%) of the Shares.
Each Sl1are is entitled to one vote. A Shareholder may act at any Shareholders
meeting by appointing another person, whether a Shareholder or not, as his proxy in
writing whether in original or by telegram, telex, telefax or e-mail.
Except as otherwise required by the law dated 1O August 1915 on commercial
compar.iss, as amended (the Companies Act) or by these Articles, resolutions at a
Shareholders meeting will be passed by a simple majority of those present or
represented.
Article 11.

The Shareholders' meetings shall be convened by the Gerant Commandite pursuant


to a notice setting forth the agenda and sent by registered mail at least eight (8) days
prior to the meeting to each Shareholder at the Shareholder's address on record in
the Company's share register.
If all the Shareholders are present or represented at a meeting of the Shareholders,
and if they state that they have been informed of the agenda of the meeting, the
meeting may be held without prior notice.
The Gerant Commandite may determine all reasonable conditions that must be
fulfilled by the Shareholders for them to participate in any Shareholders meeting.

..

Article 12.

Any regularly constituted meeting of Shareholders of the Company shall represent the
entire body of Shareholders of the Company.
Article 13.

The Company shall be managed by the Garant Commandite who shall be an


Unlimited Shareholder.
The Garant Commandite is vested with the broadest powers to perform all acts of
administration, disposition and other acts in the Company's interest which are not
expressly reserved by the Companies 1915 or by these Articles to the meeting of the
Shareholders.
The Garant Commandite shall namely have the power on behalf and in the name of
the Company, with full power of substitution, to subscribe to shares or other securities,
to carry out any and all of the purposes of the Company and to perform all acts and
enter into and perform all contracts and other undertakings that it may deem
necessary, advisable or useful or incidental thereto. Except as otherwise expressly
provided, the Garant Commandlte shall have full authority In Its discretion to exercise,
on behalf of and in the name of the Company, all rights and pov.iers necessary or
convenient to carry out the purposes of the Company.
The Gerant Commandite may sub-delegate its powers for specific tasks to one or
several ad hoc agents. The Gerant Commandite will determine this agent's
responsibilities and remuneration (if any), the duration of the period of representation
and any other relevant conditions of his agency.
The Limited Shareholders shall not take any action relating to the management of the
Company (acte de .gestion). Nevertheless, this prohibition Is not directed against the
opinions, recommendations, acts of supervision and authorizations given to the
Garant Commandite for the acts exceeding its powers.
Article 14.

The Company shall be bound by the corporate signature of the Gerant Commandite
or by the individual or joint signatures of any other persons to whom authority shall
have been delegated by the Gerant Commandite as the Garant Commandite shall
determine in its discretion, except that such authority may not be conferred to a
Limited Shareholder of the Company.
Article 15.

The accounting year of the Company shall begin on 1 May of each year and it shall
terminate on the 30 April of the following year.
Article 16.

These Articles may be amended from time to time by a generc:I meeting of the
Shareholders, subject to the quorum and majority requirements set out by article 1O of
these Articles.
5

Article 17.

All matters not governed by these Articles shall be determined by application of the
provisions of Luxembourg law, and, in particular, of the Companies Act.
Article 18.

The Company's annual accounts, which are composed of the balance sheet and the
profit and loss accounts, are established by the Garant Commandite and shall be
submitted to the approval of the annual general meeting of the Shareholders.
The grc~s profits of the Company stated in the annual accounts, after deduction of
general ~xpenses, amortisation and expenses represent the annual net profit. The
general meeting of the Shareholders approving the annual accounts shall determine
how the annual net profits will be disposed of. In addition, the general meeting of the
Shareholders approving the annual accounts may decide to make distributions out of
the distributable reserves of the Company (including share premium), within the limits
set forth by applicable law.
A genei"al meeting of the Shareholders may decide to declare and pay interim
dividends taken from the net profits of the Company and the distributable reserves of
the Comp.any (including share premium), within the limits set forth by applicable law.
In addition, the Gerant Commandite shall have the authority to declare and pay
interim dividends taken from the net profits of the Company or the distributable
reserves of the Company (including share premium), within the limits set forth by
applicab!e law. The Garant Commandite shall determine the terms and conditions of
the declaration and payment of the interim dividend, and it shall in particular
determine the amount to be paid, the payment date and the nature of the payment (I.e.
in cash or in kind).
Article '19.

At the time of winding up of the Company, the liquidation will be carried out by the
Garant Commandite.
Upon liquidation of the Company, the assets of the Company, after satisfaction of or
provision for all liabilities, shall be distributed to the Shareholders pro rata to the
number of Shares held by them.

SUBSCRIPTION AND PAYMENT

The articles of incorporation of the Company having thus been established, the
parties appearing hereby declare that they subscribe to the 25,000 (twenty five
thousand) Shares, with a par value of USO 1 (one US Dollar) each representing the
total sub~cribed capital as follows:
1.
and

Sharpsburg Holdings Limited, prenamed,: 4,000 (four thousand) B Shares;

2.
Goodwood Holdings Limited, prenamed,: 21,000 (twenty-one thousand) A
Shares;
6

Total:
Shares.

25,000 (twenty-five thousand)

All these Shares are not paid up by each of the Shareholders, and unpaid amounts on
the Shares may be called in accordance with article 7 of the Article!>.
TRANSITORY PROVISIONS
The first financial year shall begin today and it shall end on 30 April

2o 1O.

STATEMENT COSTS
The approximate amount of costs, expenses, salaries or charges, in whatever form it
may be, Incurred or charged to the Company as a result of its formation, is
approximately evaluated at EUR 1,500.EXTRAORDINARY GENERAL MEETING
The above named parties, representing the entirety of the subscribed capital,
considering themselves to be duly convened, have proceeded to hold an
extraordinary general meeting (the Meeting) of the Shareholders and having stated
that the Meeting is regularly constituted, have passed the following resolutions by
unanimous vote:
1.
The Company's registered office shall be at 5 rue Guillaume Kroll, L-1882
Luxembourg.
The undersigned notary who understands and speaks English, states herewith that at
the request of the above appearing parties, the present deed is worded in English
followed by a French version. At the request of the same appearing persons in case
of divergences between English and the French texts, the English version will be
prevailing.
Whereof the present notarial deed was drawn up in Luxembourg, on the day named
at the beginning of this document.
The document having been read to the persons appearing, all of whom are known to
the notary by their surnames, names, civil status and residences, the said persons
appearing signed together with the notary the present deed.

Suit la traduction franyaise du texte qui precede.


L'an deux mi lie neuf, le deuxieme jour du mois de decembre.
Par devant Nous, Maitre Henri Hellinckx, Notaire, de residence

a Luxembo:.irg.

ONT COMPARU:
1.Sharpsburg Holdings Limited, une societe de droit de Gibraltar, avac siege social au
57/63 Line Wall Road, Gibraltar, ici dOment representee par John Cro-we, cadre,
demeurant
4 Linden Place, Sewickley PA 15143, USA, agissant en sa qualite
d'administrateur de Sharpsburg Holdings Limited ; et

"'

,
.

'

:.

2.Goodwood Holdings Limited, une societe de droit de Gibraltar, avec siege social au
57/63 L'.:1e Wall Road, Gibraltar, ici dGment representee par M. John Crowe, cadre,
r}emeur:..!nt a 4 Linden Place, Sewickley PA 15143, USA,en vertu d'une procuration
,~mise a Gibraltar le 1er decembre 2009.
Ladite ~:rocuration, apres avoir ete paraphee et signee ne varietur par les parties
<;omparantes et le notaire instrumentaire, restera annexee au present acte pour etre
soumisa avec lul aux formalltes de l'enre~istremen t.

Lesquell~s

parties comparantes, es-qualite en vertu de laquelle elles agissent, ont


requis IP. notaire instrumentaire d'arreter les statuts (les Statuts) d'une societe qu'ils
declare11t constituer comme suit:

ij
.

..

Article 1.

II est btabli entre les souscripteurs de parts de commandite et de parts de


commanditalre, ainsi que toute personne physique ou morale susceptible de devenir
proprietaires des parts emises ci-apres, une soclete sous la forme d'une societe en
commai:dite simple (la Societe).
Sharpsburg Holdings Limited sera le gerant commandite de la Societe (le Gerant
Commandite).
Les prcprietalres de parts de commanditaire (associes commanditaires) seront
cfesigncs ci-apres comme Associes Commanditaires, les proprietaires de parts de
commandite (associes commandites) seront designes comme les Associes
Commandites et les proprietaires de parts de commandltalre et de parts de
comma11dites seront designes lndividuellement comme un Associe et collectivement
comme les Assoc!es.
Article 2.
La Sociote est constituee pour une duree illimitee. La vie de la Societe ne cessera
pas a la suite (i) de la dissolution, la faillite ou la deconfiture, ou toute autre procedure
slmilairn ainsl que le deces ou la suspension des droits clvils de tout Assocle
Commandite ou (ii) de la demission d'un Associe Commandlte en tant que Garant
Commandite.
Article 3.
La Societe est constituee sous la raison sociale de "Sharpsburg Holdings Limited
(Luxembourg) SCS".
Article 4.
L'objet de la Societe est de mener a bien toute transaction directement ou
indirectement liee a !'acquisition et/ou la detention de participations dans des
entreprises luxernbourgeoises ou etrangeres appartenant aux membres du meme
groupe de societes auquel la Societe appartient de quelque maniere, ainsi qu'a
!'administration, a la gestion, au controle et au developpement de ces participations.

La Soclete peut emprunter sous toute forme, excepte par offre pul:ilique. En outre, la
Societe peut entreprendre des operations de financement via des 'lransactions liees
directement ou indirectement l'entretien, l'admiriistration, la gestion, le controle et le
developpement de participations aupres de societes appartenant aux membres du
meme groupe de societes auquel la Societe appartient y .compris, sans etre limite a,
l'octroi de prets et de credits a ces societes, et la fourniture de toute forme d'aide,
...
d'avances ou de garanties a ces societes.
La Societe peut egalement mener toute transaction lie~ directement ou non
objet social.

a son

Article 5.

Le siege social de la Societe est etabli a Luxembourg-Ville, Grand-Duche du


Luxembourg. Des succursales ou autres implantations peuvent etre etablies soit au
Luxembourg soit a l'etranger sur decision du Garant Commandite.
Dans le cas ou le Gerant Commandite decide que des circonstances politiques,
economiques ou sociales exceptionnelles, declarees ou imminentes, entravent ou
sont susceptibles d'entraver les activites normales de la Societe dans les locaux de
son siege social, de perturber les communications entre ledit siege social et les
personnes se trouvant a l'etranger, le siege social peut etre momentanement
transfere a l'etranger jusqu'a la cessation complete de cas circonstances
exceptionnelles; ce type de mesure provisoire n'affectera pas la nationalite de la
Societe qui, nonobstant le transfert provisoire de son siege social, demeurera une
societe en commandite simple de droit luxembourgeois.
Article 6.

Le capital souscrit et emis de la Societe est fixe a 25.000 USO (vingt-cinq mille dollars
des Etats-Unis d'Amerique), reparti en 25.000 (vingt-cinq mille) parts ayant une valeur
nominale de 1 USO (un dollar des Etats-Unis d'Amerique), dont 21.000 (vingt-et-un
mille) parts sont des parts de classe A detenues par le lies Associe(s)
Commanditaire(s) (les Parts A ou Parts de Commanditaires), aucune Part A n'etant
liberee, et 4.000 (quatre mille) parts sont des parts de classe B detenues par le
Gerant Commandite (les Parts B ou Parts de Commandites), aucune Part B n'etant
liberee.
Les Parts de Commandites et les Parts de Commanditaires seront designees
individuellement par la Part et collectivement par les Parts.
De nouveaux associes peuvent etre admis avec !'accord unc=.nime de taus les
Associes.
Le capital emis par la Societe peut faire l'objet d'augmentations
decision de l'assemblee generale des Associes.

o~

de recuction:J sur

Le capital social est reparti en Parts A et B qui possedent (sur une base unitaire) des
droits de vote, des droits a dividende et des droits de liquidation egaux. Les
detenteurs de Part(s) A et de Parts B voteront toujours collectivement et jamais par
classe.

Article 7.
La Societe ne reconnait qu'un seul proprietaire par Part; dans le cas ou une Part est
detenue par plus d'une personne, la Societe se reserve le droit de suspendre
l'exercico de !'ensemble des droits attaches a cette Part jusqu'a ce qu'une seule
porsonne ait ete nommee ou designee par la communaute des detenteurs de la Part
comme :.on proprietaire unique envers la Societe.
Lf)s eve.ituels montants non-liberes au titre des Parts emises et en circulation
pouvent &tre appeles a tout moment et ce, a !'appreciation du Garant Commandite, a
la condition cependant que les appels de fonds soient effectues sur !'ensemble des
F':1rts, dtns la meme proportion et au meme moment. Toute somme dont le payement
est effec;_ue avec retard genere automatiquement des interets de retard en faveur de
lcl Societ:!! au taux de dix pour cent (10%) l'an, calcules partir de la date d'exigibilite
de:: ladite somme et jusqu'a la date du paiement effectif de la somme due. Chaque fois
qu'un montant impaye de la valeur nominale des Parts est libere, le montant libere
des Parts sera automatiquement augmente et l'artlcle 6 des presents Statuts devra
etre modifie en consequence.

Les Parts sont cesslbles, peuvent etre gagees ou grevees uniquement avec l'accord
unanimc de tous les Associes. La cession de Parts doit etre faite conformement a
!'article 1690 du Code Civil luxembourgeois.
Un registre de parts sera conserve au siege social de la Societe, ou ii pourra etre
consulte par tout Associe de la Societe. Ce registre devra mentionner le nom de
chaque Associe, son lieu de residence ou son domicile, le nombre de Parts qu'il
d6tient, las montants payes correspondant ces Parts (le cas echeant). !es cessions
de Parts et les dates de ces cessions. La propriete des Parts sera etablie par une
entree cNrespondante dans le registre de parts.

Articles .
Les provietaires de Parts de Commanditaires sont responsables pour !es dettes et
pertes di:: la Societe uniquement hauteur de leur engagement d'apport au capital de
la Societ~.

Les proprietaires de Parts de Commandites seront conjointement et separement


respons9bles avec la Societe pour les obligations de la Societe et leur responsabilite
sera illimitee.
Article 9.
Une assemblee generale annuelle des Associes aura lieu au Luxembourg, au siege
social de la Societe a Luxembourg, ou en un autre endroit au Luxembourg qui sera
indique dans la lettre de convocation.
D'autres assemblees ordinaires ou extraordinaires d'Associes peuvent etre tenues
aux lie4x, dates et 'heures qui seront indiques dans les lettres de convocation
respecfr1as auxdites reunions.
Les reso:utions d'Associes peuvent, au lieu d'etre prises en assemblees generales,
etre pas:-.ees par 6crit par !'ensemble des Associes. Dans ce cas, chaque Associe
racevra l.m projet explicite de resolution(s) adopter et votera par ecrit (un tel vote

10

devant etre envoye par courrler, telefax ou e-mail). Pour eviter tout doute, toute
reference dans les presents Statuts a des resolution~ prises ~ une assemblee
generale des Associes devra egalement comporter une reference a des resolutions
d'Associes adoptees par ecrit conformement au present ~rticle 9.

Article 10.
Les delais d'avis de convocation se rapportant a une assemblee des Associes est de
huit (8) jours precedant pareille assemblee et les regles de quorum qui sont
appliquer en ce qui concerne les assemblees des Associes consistent en la presence
ou la representation de cinquante pour cent (50%) des Parts.

Chaque Part donne droit a un vote. Un Associe peut se faire representer a une
assemblee des Associes en designant par un ecrit, soit original, soit par telecopie,
telegramme ou telex, une autre personne, Associe ou non, comma son representant
titulalre d'une procuration.
Sauf dispositions contraires contenues dans la loi du 10 aoOt 1915 sur les societes
commerciales, telle que modifiee (la Loi de 1915) ou dans les presents Statuts, les
resolutions des assemblees d'Associes seront adoptees a la simple majorite des
presents ou representes.

Article 11.
Les assemblees des Associes seront convoquees par le Garant Commandite, sous la
forme d'un avis indiquant l'ordre du jour et envoye par courrier recommande au mains
huit (8) jours avant la date fixee pour l'assemblee a chaque Associe, a l'adresse
figurant au registre des associes de la Societe.
SI tous les Associes sont presents ou representes lors d'une assemblee d'Assocles et
s'lls declarent avoir ete informes de l'ordre du jour de la reunion, l'assemblee peut
avolr lieu sans avis de convocation prealable.
Le Garant Commandite peut determiner les conditions legitimes auxqueiles doivent
se conformer les Associes afln de pouvolr prendre part a toutes les assemblees
d'Associes.

Article 12.
Toute assemblee d'Associes de la Soclete regulierement constituee represente la
totalite de la masse des Associes de la Societe.

Article 13.
La Societe sera gen~e par le Gerant Commandite qui sera un Associe Commandlte.
Le Garant Commandite est investi des pouvoirs les plus larges qui lui permettent
d'effectuer tous les actes d'administration, de disposition et autres dans l'interet de la
Societe et qui ne sont pas expressement reserves, d'apres la Loi de 1915 ou d'apres
les presents Statuts, a l'assemblee des Associes.
Le Garant Commandite aura notamment le pouvoir, au nom et pour le compte de la
Societe, avec pouvoir de substitution, de souscrire des parts et autres titres, de mettre
11

.- - - -- - - -- - -\:

~---------~

en ~uvre tout ou partie de l'objet social de la Societe et d'executer tous les actes et
conclure tous les contrats et autres operations reputes necessaires, opportuns, utiles
ou accessoires a cet effet. Sauf dispositions expresses contraires, le Gerant
Commandite aura, et aura tout pouvoir d'exercer a sa discretion, au nom et pour le
compte de la Societe, taus les droits et pouvoirs necessaires ou opportuns pour
mem:lr a bien les objectifs de la Societe.
Le Gerant Commandite peut deleguer ses competences pour des operations
speci(iques a un ou plusieurs mandataires ad hoc. Le Garant Commandite
determinera les responsabilites du mandataire et sa remuneration (si le mandat est
remul\ere), la duree de la periode de representation et n'importe quelles autres
condi~:ons pertinentes de ce mandat.
' '.

Les I ssocies Commanditaires n'entreprendront aucune action liee a la gestion de la


Socie.e (acte de gestion). Cependant, cette interdiction ne s'applique pas aux avis,
reco171mandations, actes de gestion et autorisations donnes au Garant Commandite
pour lcs actes depassant ses competences.

Articl.e 14.
La Societe sera engagee par la signature du Garant Commandite ou par la signature
individuelle ou les signatures conjointes et solidaires des autres personnes
auxquelles le Garant Commandite aura delegue le pouvoir de signature. Le Gerant
Commandite prendra cette decision selon sa propre appreciation, a la reserve pres
qu'un tel pouvoir de signature ne peut etre confere a un Associe Commanditaire de la
Societe.

Artide 15.
L'exercice social de la Societe debutera le 1er mai de chaque annee et se terminera
le 30 c;vril de l'annee suivante.

Articl~

16.

Les p1esents Slatuts peuvent faire l'objet de modifications periodiques adoptees lors
d'une assemblee generale des Associt.~s. sous reserve du respect des exigences de
quon m et de majorite definies par I'article 1O des presents Statuts.

Article 17.
"I

Les 0 1Jestions non-regies par les presents Statuts seront reglees par les dispositions
conte'nues dans la legislation luxembourgeoise et, en particulier, dans la Loi de 1915.

Article 18.
Les comptes annuels de la Societe, qui sont composes du bilan et du compte de
pertes et profits, sont etablis par le Gerant Commandite et doivent etre soumis a
!'approbation de l'assemblee generale annuelle des Associes.
Les profits bruts de la Societe figurant dans les comptes annuels, deduction faite des
frais generaux, amortissements et charges, constituent le benefice net annuel.
L'assemblee generale des Associes approuvant les comptes annuels devra
determiner !'affectation du solde de ce benefice net annuel. De plus, l'assemblee
12

- - - - - - - -- ------ - - -- - -

-~

generale des Associes approuvant les comptes annuels peut decider de faire des
distributions a partir des reserves distribuables de la Societe (y compris la prime
d'emission), dans les limites prevues par la loi a'pplicable.
~.';

..

.. ..,,
_

Une assemblee generals des Associes peut decider de declarer et verser des
dividendes interimaires a partir du benefice net et des reserves pistribu.ables de la
Societe (y compris la prime d'emission), dans les limites prevues par la Joi applicable.
En outre, le Gerant Commandite ~ura le pouvoir de declarer et ver~er des .dividendes
interimaires a partir du benefice net et des reserves distribuables de la Societe (y
compris la prime d'emission), dans Jes limites prevues par la lol applicable. Le Gerant
Commandite determinera les conditions generales de la declaration et du versement
du dividends interimaire, et plus particulierement le montant devant etre paye, la date
et la nature du paiement (par example en numeraire ou en nature).

Article 19.
Au moment de la dissolution de la Societe, la liquidation sera menee par le Gerant
Commandite.
Lors de la liquidation de la Societe et une fois que toutes les dettes auront ete reglees
ou provisionnees, les actifs de la Societe seront distribues aux Associes
proportionnellement au nombre de Parts qu'ils detiennent.

SOUSCRIPTION ET LIBERATION
Les statuts de la Societe ayant ete ainsi constitues, les parties declarent souscrire les
25.000 (vingt-cinq mille) Parts, ayant une valeur nominale de 1 USO (un dollar des
Etats-Unis d'Amerique) chacune, representant la totalite du capital social de la fa9on
suivante:
1.
Sharpsburg Holdings Limited, precite :
(quatre mille) Parts B; et

4.000

Goodwood Holdings Limited, precite :


2.
(vingt-et-un mille) Parts A ;

21.000

25.000

Total:
cinq mille) Parts.

(vingt-

Toutes ces Parts ne sont pas liber986 par chacun des Associes, et les montants
- impayes sur les Parts peuvent ~tre appeles conformement a !'article 7 des Statuts.

DISPOSITION TRANSITOIRE
Le premier exercice social commence aujourd'hui et finit le 30 avril 2010.

DECLARATION - FRAIS
Le montant approximatif des coats, depenses, salaires ou charges, sous quelque
forme que ce solt imputes ou factures a la Societe a !'occasion de sa constitution est
estime a environ EUR 1.500.-

13

ASSEMBLEE GENERALE CONSTITUTIVE

Les parties ci-dessus designees, representant la totalite du capital souscrit,


consic.l~~rant qu'elles ont ete dument convoquees, ont tenu une assemblee generale
extraordinaire (l'Assemblee) des Associes et, ayant declare l'Assemblee
regulie1ement constituee, ant adopte la resolution unique suivante l'unanimite:

1.
Le siege social de la Societe est etabli au 5 rue Guillaume Kroll, L-1882
Luxem':)Qurg.

Le notaire soussigne qui comprend et parle l'anglais declare que, sur requete des
parties presentes ci-dessus mentionnees, le present acte a ete redige en anglais et
sera suivi d'une version fran9aise. A la demande des memes. parties presentes, en
cas de divergence entre les textes anglais et fran9ais, la version anglaise prevaudra.
Dant aste, fait et passe

a Luxembourg, date qu'en tete des presentes.

Lecturn du document ayant ete donnee aux personnes presentes, dont !es noms,
prenoms, etats civils et domiciles respectifs sont connus du notaire, lesdites
personnes presentes ont devant le notaire signe ensemble le present acte.

14

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Heinz Finance (Luxembourg) S.a r.l., Societe a


responsabilite limitee.
Siege social: L-2557 Luxembourg, 9A, rue Robert Stumper.
R.C.S. Luxembourg B 149.974.

STATUTES
In the year two thousand and nine, on the second day of December,
Before, Maitre Henri Hellinckx, notary residing in Luxembourg.
THERE APPEARED:
Sharpsburg Holdings Limited (Luxembourg) SCS, a limited partnership incorporated under the laws
of Luxembourg, having its registered office at 5 rue Guillaume Kroll, L-1882 Luxembourg, in the
process of being registered with the Luxembourg Trade and Companies' Register,
here represented by John Crowe, executive, residing in 4, Linden Place, Sewickley PA 15143,
United States of America, acting in his capacity as director of Sharpsburg Holdings Limited, acting
itself in its capacity as gerant commandite of Sharpsburg Holdings Limited (Luxembourg) SCS.
Such appearing party, in the capacity in which it acts, has requested the undersigned notary, to state
as follows the articles of association of a private limited liability company (societe a responsabilite
limitee), which is hereby incorporated.

Ar t. 1. Name. There exists a private lim ited liability company (societe responsabilite limitee) by
the name of "Heinz Finance (Luxembourg) S.a r.I." (the Company).
Ar t. 2. Corporate object. The object of the Company is to carry out all transactions pertaining
directly or indirectly to the acquisition of participations in Luxembourg and foreign companies, in
any form whatsoever, the administration, management, control and development of those
participations and the performance of any and all treasury functions related thereto.
The Company may use its funds to establish, manage, develop and dispose of its assets as they may
be composed from time to time, to acquire, invest in and dispose of any kinds of property, tangible
and intangible, movable and immovable, and namely but not limited to, its portfolio of securities of
whatever origin, to participate in the creation, acquisition, development and control of any
enterprise, to acquire, by way of investment, subscription, underwriting or option, securities, to
realise them by way of sale, transfer, exchange or otherwise and to develop them.
The Company may borrow in any form, except by way of public offer. It may issue by way of
private placement only, notes, bonds and debentures and any kind of debt securities in registered
form and subject to transfer restrictions. The Company may lend funds including the proceeds of any
borrowings and/or issues of debt securities to its subsidiaries or affiliated companies.
The Company may give guarantees and grant security in favour of third parties to secure its
obligations and the obligations of companies in which the Company has a direct or indirect
participation or interest and to companies which form part of the same group of companies as the
Company and it may grant any assistance to such companies, including, but not limited to, assistance

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in the management awl the development of such companies and their portfolio, financial assistance,
loans, a<lvancen or gm;.rantees. It may pledge, transfer, encumber or otherwise create security over
some or all its.<;ssets.
The Company may carry out any commercial, industrial, financial, personal, and real estate
operations, which are directly or indirectly connected with its corporate purpose or which may
favour its development.
Art. 3. Duration. The Company is formed for an unlimited period of time.
Art. 4. Registered office. The registered office is established in the municipality of Luxembourg.
It may be transferred to any other place in the Grand Duchy of Luxembourg by means of a resolution
of an extraordinary gcrteral meeting of its shareholders. It may be transferred within the boundaries
of the manicipality by a resolution of the manager/boa~<l of managers of the Company.

'.
The Company may ha ie offices and branches, both in Luxembourg and abroad.
Art. 5. Share capital. The Company's subscribed share capital is fixed at USD 25,000 (twenty five
thousand US Dollars), represented by 25,000 (twenty five thousand) shares having a nominal value
of USO 1 (one US Dollar) per share each.
Art. 6. Amcn<lments to the share capital. The share capital may be changed at any time by a
decision of the sole shareholder or by decision of the shareholder meeting, in accordance with article
15 of these articles of association.
Art. 7. Profit sharing. Each share entitles the holder thereof to participate in the distributions made
by the Company, whether by dividend or otherwise, out of profits and distributable reserves
(including share premium) available to that effect, in direct proportion to the number of shares in
existence.
Art. 8. Indivisible shares. Towards the Company, the Company's shares arc indivisible, and only
one owner is admitted per share. Joint co-owners have to appoint a sole person as their representative
towards the Company.
Art. 9. Transfer of sli l!rcs. In case of a sole shareholder, the Company's shares held by the sole
shareholder arc.freely .ransferable.
In case of multiple shareholders, the transfer of shares inter vivos to third parties must be authorised
by the general meeting of the shareholders who represent at least three-quarters of the paid-in capital
of the Company. No such authorisation is required for a transfer of shares among the shareholders.
The transfer of shares mortis causa to third parties must be accepted by the shareholders who
represent three-quarters of the rights belonging to the surviving shareholders.
The requirements of a1ticles 189 and 190 of the Luxembourg act dated I 0 August 1915 on
commercial companies, as amended (the Companies Act) wi ll apply.
Art. 10. Redemption of shares. The Company shall have power to acquire shares in its own capilal
provided that the Company has sufficient distributable reserves (including share premium) and
profits to that effect.
The acquisition and disposal by the Company of shares held by it in its own share capital shall take
place by virtue of a resolution of and on the terms and conditions to be decided upon by the sole

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shareholder or the general meeting of the shareholders. The quorum and majority requirements
applicable for amendments to the articles of association shall apply in accordanc~ with article 15 of
these articles of association.

Art. 11. Death, suspension of civil rights, Insolvency or bankruptcy of the shareholders. The
death, suspension of civil rights, insolvency or bankruptcy of the sole sharehold~r or of one of.the
shareholders will not tenninate the Company to an end.

.;
'
. \
Art. 12. Management. The Company is managed by one or more managers. Eaqh man~ger sha.Jl be
assigned either an A or a B signatory power. If several managers have been appointed, they will
constitute a board of managers. The manager(s) need not to be shareholders. The manager(s) are
appointed, revoked and replaced by a decision of the general meeting of the shareholders, adopted by
shareholders owning more than half of the share capital.
The managers with a B signatory power shall be professionally residing in Luxembourg. In the event
that a manager does not fulfil any longer the residency requirements relating to the grant of the B
signatory power, the relevant manager shall inform the board of managers and the board of managers
shall convene as soon as practically possible a general meeting of shareholders to modify the
signatory powers of the manager accordingly.
The general meeting of the shareholders may at any time and ad nutum (without cause) dismiss and
replace the manager or, in case of multiple managers, any one of them.
All powers not expressly reserved by law or the present articles of association to the general meeting
of shareholders fall within the power of the manager, or in case of multiple managers, of the board of
managers.
The Company shall be bound by the sole signature of its sole manager, and, in case of multiple
managers, by the joint signatures of a manager with an A signatory pow~r and a manager with a B
signatory power.
The manager, or in case of multiple managers, any manager with an A signatory power and any
manager with a B signatory power acting jointly may sub-delegate their powers for specific tasks to
one or several ad hoc agents. The manager, or in case of multiple managers, the delegating managers
with an A signatory power and a B signatory power, will determine this agent's responsibilities and
remuneration (if any), the duration of the period ofrepresentation and any other relevant conditions
of his agency.
In the case of multiple managers, the board of managers can deliberate or act validly, with respect to
any matters, only if (a) more than two-thirds of all managers are present or represented and (b) at
least 2 (two) managers are present at the meeting of the board of managers.
In the case of multiple managers, the resolutions of the board of managers shall be adopted, with
respect to any matters, by the affirmative vote of two-thirds of the managers present or represented.
The meetings are held at the place, the day and the hour specified in the convening notice. Meetings
are held, as a rule, in the city of Luxembourg and under no circumstances shall any meeting of the
board of managers be held outside the Grand Duchy of Luxembourg. The notice.may be waived by
the consent in writing or by telefax or telegram or telex or e-mail transmission o: each ;nanager. No
separate notice is required for meetings held at times and places specified in a schedule previously
adopted by resolution of the board of managers.
In the case of multiple managers, written notice of any meeting of the board of r.1anagers will be
given to all managers, in writing or by telefax or electronic mail (e-mail), at least 24 (twenty-four)

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hours in advance of fr,e hour set for such meeting, except in circumstances of emergency. A meeting
of the board of manar,ers can be convened by any mariager individually. This notice may be waived
if all the mana~crs arc present or represented, and if they state that they have been informed on the
agenda of the meeting. Separate notice shall not be required for individual meetings held at times
and places prc:;~ribed in a schedule previously adopted by a resolution of the board of managers.
A man~ger may act at a meeting o f the board of managers by appointing in writing or by telefax or
electronic maii (e-mai:) another manager as his proxy. A manager may also participate in a meeting
of the board of: manag,~rs by conference call, videoconfcrence or by other similar means of
communication allowing all tht: managers taking part in the meeting to be identified and to
deliberate, provided tt~at the conference call shall be initiated from Luxembourg. The participation
by a manager in a meeting by conference call, vidcoconference or by other similar means of
communication mentioned above shall be deemed to be a participation in person at such meeting and
the meeting shall be deemed to be held in Luxembourg, at the place where the conference call is
initiated. The decisions of the board of managers will be recorded in minutes to be held at the
registered office of the Company and to be signed by the managers attending. Proxies, if any, will
remain attached to the minutes of the relevant meeting.
Notwithstanding the foregoing, a resolution of the board of managers may also be passed in writing
in which case the minutes shall consist of one or several documents containing the resolutions and
signed by each and ev .!ry manager. The date of such circular resolutions shall be the date of the last
signature. A meeting of the board of managers held by way of such circular resolutions is deemed to
be held in Lux~mbourci.
1

A rt. 13. Liability of the manager(s). The manager or the managers (as the case may be) assume, by
reason d'his/tirdr position, no personal liability in relation to any commitment validly made by
him/them in th\: name of the Company.
The Company rnay, s11i>jcct to applicable law, indemnify any manager and his heirs, executors and
administrators, against expenses reasonably incurred by him/her/it in connection with any action, suit
or proceeding to which he/her/it may be made a party by reason of him/her/it being or having been a
manager of the Company or, at his/her/its request, of any other corporation of which the Company is
a shareholder or creditor and from which he/she/it is not entitled to be indemnified, except in relation
to matters as to which he/her/it shall be finally adjudged in such action, suit or proceeding to be
liable for gross negligence or misconduct.
In the event of a settlement, indemnification shall be provided only in connection with such matters
covered by the settlement as to which the Company is advised by counsel that the person to be
indemnified did not commit such a breach of duty. The foregoing right of indemnification shall not
exclude other rights to which he/she/it may be entitled.

Art. 14. General meetings of the shareholders. An annual general meeting of the shareholdcr(s)
shall be held at the registered office of the Company, or at such other place in the municipality of its
registered office as may be specified in the notice of meeting.
Other general meeting~ of the sharcholder(s) may be held at such place and time as may be specified
in the rcspecti'l(e notices of meeting. General meetings shall be held, as a rule, in Luxembourg.
As long as the Company has no more than twenty-five (25) shareholders, resolutions of shareholder
(s) can, instead of being passed at general meetings, be' passed in writing by all the shareholders. In
this case, each .shareholder shall be sent an explicit draft of the resolution(s) to be passed, and shall
vote in writing (such vote to be evidenced by letter or telefax or electronic mail (e-mail)
transmission).

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Art. 15. Shareholders' voting rights, quorum and majority. The sole shareholder assumes all
powers conferred to the general meeting of the shareholders.
ln case of multiple shareholders, each shareholder may take part in collective decisions irrespectively
of the number of shares, which he owns. Each shareholder has voting rights commensurate with his
shareholding. Collective decisions are only validly taken insofar as they are adopted by shareholders
owning more than half of the share capital.
However, resolutions to alter the articles of association of the Company may only be adopted by the
majority in number of the shareholders owning at least three quarters of the Company's share capital
and the nationality of the Company can only be changed by unanimous vote, subject to the
provisions of the Companies Act.

Art. 16. Financial year. T he accounting year of the Company shall begin on the 1st May of each
year and it shall terminate on the 30th April of the following year.
Art. 17. Financial statements. Each year, with reference to 30th April, the Company's accounts are
established and the manager, or in case of multiple managers, the board of managers prepare an
inventory including an indication of the value of the Company's assets and liabilities.
Each shareholder may inspect the above inventory and balance sheet at the Company's registered
office.

Art. 18. Appropriation of profits, reserves. The gross profits of the Company stated in the annual
accounts, after deduction of general expenses, amortisation and expenses represent the net profit. An
amount equal to five per cent. (5%) of the net profits of the Company is allocated to a statutory
reserve, until this reserve amounts to ten per cent. (10%) of the Company's nominal share capital.
The general meeting shall detennine how the remainder of the annual net profits will be disposed of.
In addition, the general meeting approving the annual accounts may decide to make distributions out
of the distributable reserves of the Company (including share premium), within the limits set forth by
applicable law.
A general meeting of shareholders may decide to declare and pay interim dividends taken from the
net profits of the Company and the distributable reserves of the Company (including share
premium), within the limits set forth by applicable law. In addition, the manager, or in case of
multiple managers, the board of managers shall have the authority to declare and pay interim
dividends taken from the net profits of the Company or the distributable reserves of the Company
(including share premium), within the limits set forth by applicable law. The manager, or in case of
multiple managers, the board of managers shall determine the terms and conditions of the declaration
and payment of the interim dividend, and it shall in particular determine the amount to be paid, the
payment date and the nature of the payment (i.e. in cash or in kind).

Art. 19. Liquidation. At the time of winding up of the company the liquidation will be carried out
by one or several liquidators, shareholders or not, appointed by the shareholders who shall determine
their powers and remuneration.
Upon liquidation of the Company, the assets of the Company, after satisfaction of or provision for all
liabilities, shall be distributed to the shareholders pro rata to the number of shares held by them.

Art. 20. Statutory auditor - External auditor. In accordance with article 200 of the Companies
Act, the Company needs only to be audited by a statutory auditor if it has more than 25 (twenty-five)
shareholders. An external auditor needs to be appointed whenever the exemption provided by article
69 (2) of the Luxembourg act dated 19 December 2002 on the trade and companies register and on
the accounting and financial accounts of companies does not apply.

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Art. 21. Reference to legal provisions. Reference is made to the provisions of the Companies Act
for all matters for which no specific provision is made in these articles of association.

Subscription and Payment


The appearing party hereby declares that it subscribes to the 25,000 (twenty five thousand) shares
having a nominal value of USO 1 (one US Dollar) each representing the total subscribed share

capital of the Company.


All these shares have :1een fully paid up by means of a' 0ontribution in cash in an aggregate amount
of USO 25,00li (twen::y five thousand US Dollars), so tlrnt the same sum is at the free disposal of the
Ccmpan:,.', cvi_c cncc o f which has been given to the undersigned by means of a blocking certificate
and the ilotary ~xpres~'.-y acknowledges the availability of the funds so paid.
,

The contributi0n in ca'.lh in an aggregate amow1t of 25,000 (twenty five thousand US Dollars) made
to the Compan'y is to jj'i.; allocated to the nominal sharecapital of the Company.
!.

T ransitory Provisions
The first financial year shall begin today and it shall end on 30 April 20 l 0.

Estimate of costs
The expenses, costs, remunerations and charges in any form whatsoever, which shall be borne by the
Company as a result of the present deed are estimated to be approximately EUR 1,500.-.

Extraordinar y General Meeting


Immediately after the incorporation, the sole shareholder representing the entire subscribed capital of
the Company Lave herewith adopted the following resolutions:
1. the number '.}f mam.3ers is set at 2 (two). The meeting appoints as managers of the Company for
an unlimited pr,:iod of time:

- Mr Emanuele Vare, Gtnployee at Heinz as European Treasury Director, born on 21 March 1967 in
Milan (Italy), whose prnfessional address is at Via Cascina bel Casule 7 20141 Milan (Italy) as
manager with an A signatory power; and
- Ms Yannick Poos, employee, born on 19 April 1968 ir1 Libramont (Belgium), whose professional
address is at 5, rue Guillaume Kroll, L-1882 Luxembourg, as manager with a B signatory power;
2. the registered office is established at 9A rue Robert Stiimper, L-2557 Luxembourg.
The undersigned notary who understands and speaks English, states herewith that on request of the
above appearing party, the present deed is worded in English, followed by a French version; at the
request of the same appearing party, in case of discrepancies between the English and the French
text, the English version will be prevailing.
Whereof the present notarial deed is drawn in Luxembourg, on the date stated above.
Ir. witness whereof We, the undersigned notary, have set our hand and seal on the date and year first
hereabo'.'c mentioned.

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The document having been read to the proxyholder of the appearing party, the proxyholder(s) of the
appearing party signed together with Us, the notary, the present original deed.

Suit la version fran~aise du texte qui precede:


L'an deux mille neuf, le deuxieme jour du mois de decembre.
Par-devant Maltre Henri Hellinckx, notaire de residence aLuxembourg:
ACOMPARU:

'.

Sharpsburg Holdings Limited (Luxembourg) SCS, une societe en corn.mandite s'imple de droit.
luxembourgeois, ayant son siege social au 5 rue .Guillaume Kroll, L-1882 LuXefTlbourg'<~t en cours
d'immatriculation aupres du Rcgistre de Commerce ct des Societes de Luxembourg;

ici represente par John Crowe, cadre, residant a4 Linden Place, Sewickley PA 15143, USA, agissant
en sa qualite d'administrateur de Sharpsburg Holdings Limited, agissant ellc-mcme au titre de gerant
commandite de Sharpsburg Holdings Limited (Luxembourg) SCS.
Ladite partie comparante, aux termes de la capacite avec laquelle elle agit, a requis le notaire
instrumentant d'arrcter ainsi qu'il suit Jes statuts d'unc societe aresponsabilitc limitce qu'elle declare
constitucr en vertu du present actc.
Art. 1 er Norn. II existe une societe aresponsabilite limitee, prenant Ia denomination de "Heinz
Finance (Luxembourg) S.a r.I." (ci-apres, la Societe).
Art. 2. Objet social. L'objet social de la Societe est l'accomplissement de toutes Jes operations se
rapportant directement OU indirectemcnt a la prise de participations dans des societes
luxcmbourgeoises OU ctrangcres, sous quelque forme que ce soit, ainsi que )'administration, Ia
gestion, le controlc ct le developpement de ccs participations ainsi quc la realisation de tout type de
fonctions de tresorerie qui y sont liees.

La Societe peut utiliser ses fonds pour constitucr, administrer, developper et vcndre ses portefeuilles
d'actifs tel qu'ils seront constitues au fil du temps, acquerir, investir dans ct vendre toutc sorte de
proprietes, corporelles ou incorporelles, mobilieres ou immobilieres, notamment, mais non Iimite a
des portefeuilles de valeurs mobilieres de toute origine, pour participer a la creation, ]'acquisition, le
dcvcloppement et le controlc de toute cntreprise, pour acquerir, par voie d'investissemcnt, de
souscription ou d'option des valeurs mobilieres, pour en disposer par voic de vcr.tc, transfert,
echange OU autrement et pour Jes deveJopper.
La Societe peut empruntcr, sous quclque forme que cc soit, sauf par voie d'offre publique. Elle pcut
proceder, uniquement par voie de placement prive, a]'emission de titres, obligations, hons de caissc
et tous titres de dettes sous forme nominative ct soumise ades restrictions de transfert. La Societe
peut accorder tous credits, y compris le produit de prets et/ou emissions de valeurs mobilieres, a ses
filiales ou societes affilices.
La Societe peut consentir des garanties ou des surctes au profit de tierces pcrsonnes afin de garantir
ses obligations ct Jes obligations de societes dans lesquelles elle a une participation ou un interet
directs ou indirects et toute societe faisant pa1tie du mcme groupe de socictes que Ia Societe et elle
pcut assister financierement ccs societes pour, y compris mais non limite a, gerer ct developper ces
societes et leur portefeuille par des prets, avances et garanties. Elle peut nantir, hypothequer, ceder,
grever de charges toute ou partie de ses avoirs ou creer, de toute autre maniere, des sfuetes portant
sur toute ou partie de ses avoirs.

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'

La Soci6te pet:i. accon:plir tout<.:s !es operations commerciales, industrielles, financieres, mobilicrcs
et immobiliere:s, se rapportant directement ou indirectcment a son objet social ou susceptibles de
favoriser son dcveloppcment. '

Art. 3. Duree. La Soc.icte est constituee pour unc duree illimitee.


Art. 4. Siege social. Le siege social est etabli

aLuxembourg.

II peut etre transfere en tout autre lieu du Grand-Duchc de Luxembourg par simple decision d'une
assemblee generale e;<iraordinairc des associes. II peut etre transfere a l'interieur de la commune par
unc decision du gerant/conseil de gerance.
La Societe peur ouvrir des bureaux et succursales dans tous autres lieux du pays ainsi qu'a l'etrangcr.

Art. 5. Capital i;ociaJ_.. Le capital social de la Soci6t6 est fixe ala sommc de 25.000 USD (vingt-cinq
mi Ile dollars d:fi Etat~: Unis d'Ameriquc) rcprcscnte par 25.000 (vingt-cinq mil le) parts socialcs d'unc
valeur.11ominat1: de l :..rso (un dollar des Etats-Unis d'Amerique) chacune.
Art. 6. r"todi~cation rlu capital social. Le capital social pourra atout moment etre modifie
moyen11ant decision di; l'associe unique sinon de l'asscmblee des associes, conformcment al'article
15 des presents statut~.
Art. 7. Participation aux benefices. Chaquc part soci<.ile permct a son proprietaire de participer aux
distributions faites par la Societc, qu'il s'agisse de dividcndcs OU autre, apartir des benefices et
reserves distriquables.(y compris la prime d'emission) disponibles acct cffct, proportionnellemcnt au
nombre des parts existantes.
Art. 8. Parts sGciales indivisibles. Les parts socialcs sont indivisibles a l'cgard de la Societe qui ne
reconnait qu'uu seul proprietairc pour chacune d'clles. Les coproprietaires indivis de parts sociales
sont tem;s de se faire rt:presenter aupres de la Societe par une seule et memc personne.
Art. 9. Transfcrt de parts sociales. Toutcs cessions de parts socialcs dctcnucs par l'associe unique
sont librcs.
En cas de pluralite d'associes, la cession de parts sociales inter vivos ades tiers non-associes doit ctre
autorisc~ par l'.1sscmbl6c generale des assocics rcprcsentant au moins trois quarts du capital social.
Une te!I.: auto~~sation :1'cst pas requise pour unc cession de parts socialcs entre associes.
La cession de parts sociales mortis causa ades tiers non-associes doit etrc acccptee par les associes
qui representent trois quarts des droits appartcnant aux survivants.
.
.
Les exigences des artides 189 et 190 de la loi du I 0 aoGt 1915 sur Jes societes commercial es, telle
que modifiee (la Loi dc 1915) doivent etre respectees.

Art. 10. Rachat de parts socialcs. La Socictc pourra ac.querir ses propres parts sociales pourvu quc
la Societe dispose acette fin de reserves distribuables (y compris la prime d'emission) OU des fonds
suffisants.

..
L'acquisition et la disposition par la Societe de parts sociales detenues par cllc dans son propre
capital social ne pourra avoir lieu qu'en vertu d'une resolution et conformement aux conditions qui
seront decidees par unc assemblee generale de l'associe unique/des assocics. Les exigences de
quorum ct de majorite applicables aux modifications des statuts en vertu de l'article 15 des statuts
sont d'application.

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Art. 11. Deces, Interdiction, faillite ou deconfiture des associes. Le deces, !'interdiction, Ia faillite
ou Ia deconfiture de l'associe unique, sinon d'un des associes, ne mcttcnt pas fin a Ia Societe.
Art. 12. Gerance. La Socicte est gen~e par un ou plusieurs gerants. Chaquc g6rant se verra attribucr
un pouvoir de signature A ou un pouvoir de signature B. Si plusieurs gerants ont ete de.si'gnes, ils
fonncront un conseil de gerance. Le ou Jes gcrant(s) n'ont pas besoin d'etre associes. Le ou Jes
gerants sont designes, revoques ct remplaces par l'asscmblee generale des associ'es, par une
resolution adoptee par des associes representant plus de la moitie du capital social
Les gerants ayant un pouvoir de signature B doivcnt resider professionnellement aLuxembourg.
Dans l'hypothese OU un gerant ne remplit plus Jes criteres de residence lies a l'odroi du pouvoir de
signature B, le gerant en question doit en informer le conseil de gerance et le conseil de gerance doit
convoquer des que possible une assemblee generalc des associes visant a modifier Jes pouvoirs de
signature du gerant concerne.
L'assemblce gencralc des associes peut a tout moment et ad nutum (sans justifier d'une raison)
revoquer et remp]acer le gerant, OU Si p]usieurs gerants Ont ete nomrnes, n'importc Jequel des gerants.
Tous Jes pouvoirs non exprcssemcnt reserves par la loi OU les presents statuts a l'asscmblee generale
des associes sont de la competence du gerant ou, en cas de pluralite de gerants, de la competence du
conseil de gerance.
La Societe scra engagec par la seule signature de son gerant unique et, en cas de pluralite de gerants,
par les signatures conjointes d'un gerant avec pouvoir de signature A et d'un gerant avec pouvoir de
signature B.
Le gerant unique ou, en cas de pluralite de gerants, tout gerant disposant d'un pouvoir de signature A
et tout gerant disposant d'un pouvoir de signature B agissant conjointement peuvent deleguer leurs
competences pour des operations specifiques a un ou plusieurs mandataires ad hoc. Le gerant unique
ou, en cas de pluralite de gerants, les gerants qui deleguent disposant d'un pouvoir de sit:,'tlature A et
d'un pouvoir de signature B dctermineront la responsabilite du mandataire et sa remuneration (si le
mandat est remunere), la duree de la periode de representation et n'importe quell cs autres conditions
pertinentes de ce mandat.
En cas de pluralite de gcrants, le conseil de gerancc peut deliberer ou agir valablement, eu egard a
toutes les matieres, seulement si (a) plus de deux tiers de tous Jes gerants sont presents ou representes
et (b) au moins 2 (deux) gerants sont presents ala reunion du conseil de gerance.
En cas de pluralite de gerants, les decisions du conseil de gerance seront prises, eu egard a toutes Jes
maticres, ala majorit6 des dcux tiers des gerants presents ou represcntes ayant vote positivement.
Les reunions se tiennent au lieu, jour et heure indiques dans la convocation. Les reunions se
deroulent, en general, dans la ville de Luxembourg ct aucune reunion du conscil de gerance ne
pourra en aucun cas avoir lieu al'exterieur du Grand-Duche de Luxembourg. II peut etre renoncc a la
convocation de l'accord de chaque gerant donn6 par ecrit, telefax, telegramme, telex ou e-mail.
Aucune convocation speciale n'est requise pour des reunions tenues en des lieux et temps indiques
dans un document prealablement approuve par une resolution du conseil de gera:1ce.

En cas de pluralitc de gerants, avis ecrit de toutc reunion du conseil de gcrance sera dom1e tousles
gerants par ecrit ou telecopie ou courriel (e-mail), au moins 24 (vingt-quatre) hcures avant l'heure
prevue pour la reunion, sauf s'il y a urgence. Unc reunion du conseil de gerance pourra ctre
convoquee par tout gerant individuellemcnt. On pourra passer outre cctte convocation si les gerants
sont presents ou representes au conseil de gcrance et s'ils declarent avoir ete infonnes de l'ordre du
jour. Une convocation speciale nc sera pas requisc pour une reunion du conseil de gerar.ce se tenant

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aune heure et aun en<lroit determines clans une resolution prealablement adoptee par le conseil de
gerance.
Tout gerant pctma se faire representer en designant par ecrit ou par telecopie ou courriel (e-mail) un
autre gerant ccmme su1 mandataire. Tout gerant peut participer a une reunion du conseil de gcrance
par conf~rence~ teleph1;;.ique, visioconference ou par ou par tout autre moyen similaire de
communfoation.permcttant atous Jes gerants qui prennent part ala reunion d'etre identifies ct de
deliberer. La p:u-ticipa;ion d'un gerant aune reunion du conseil de gerance par conference
telephonique, 'fisiocovference ou.par ou par tout autre moyen similaire de communication auquel est
fait reference ci-dess1J:; .:;era consideree comme une participation en personne a la reunion et la
reunion sera ccnse avvir ete tenue au siege social. Les decisions du conseil de gerance seront
consignees dans un proces-verbal qui sera conserve au siege social de la Societe et signe par les
gerants presents au conseil de gerance. Les procurations, s'il yen a, serontjointes au proces-verbal
de la reunion. '
Nonobstant les dispositions qui precedent, une decision du conseil de gerance peut egalement etre
prise par voic circulafre et resulter d'un seul ou de plusieurs documents contenant les resolutions et
signes par tous les membres du conseil de gerance sans exception. La date d1une telle decision
circulaire sera la datepe la demiere signature. Une reunion du conseil de gerance tenue par voie
circulaire sera consideree comme ayant ete tenue aLuxembourg.
Art. 13. Responsabilite des gerants. Le ou les gerants (selon le cas) ne contractent, a raison de leur
fonction, aucunc obligi:ltion personnelle relativement aux engagements regul ierement pris par eux au
nom de la Societe.
Sous reserve c"~ la Joi ::pplicablc, la Societe peut indemniser tout gerant ainsi que ses heritiers,
executeurs et a<lministrateurs, des frais qu'il a encourus raisonnablement dans le cadre d'une action,
d'un pro~es ou d'une procedure auquel il peut devenir partie du fait qu'il est ou a ete un gerant de la
Societe cu, as:; demallde, d'une autre societc de capitaux dont la Societe est actionnaire ou
creancicre et dont ii n'cst pas autorise a recevoir une indemnisation, sauf au titre de questions pour
lesquelles cette action, ce proces ou cette procedure aboutit a un jugement definitif le declarant
responsable pour faute grave (gross negligence) ou mauvaise gestion (misconduct).
En cas de protocole transactionnel, l'indemnisation n'est offcrte qu'au titre des questions couvertes
par la transaction pour lesquelles un avocat a avise la Societe que la personne a indemniser n'a pas
commis une telle violation d'obligation. Le droit a indemnisation qui precede n'exclut pas les autres
droits auxquels cette personn.e p,eut avoir droit.
Art. 14. Assemblees generale des associes. Une assemblee generale annuelle des associes se tiendra
au siege social de la Societe ou a tout autre endroit de la commune de son siege social apreciser dans
la convocation al'assemblee.
D'autres assemblees generates de l'associe unique ou des associes peuvent etre tenues aux lieux et
places indique!J dans IJ convocation. Les assemblees generales se tiennent generalement a
Luxembourg.
Tant quc la Societe n':1 pas plus de vingt-cinq (25) associes, les resolutions de l'associe unique ou des
associes poun-ont, au lieu d'etre prises lors d'assemblees generales, etre prises par ecrit par tous les
associes. Dans cette hypothese, un projet explicite de la resolution ou des resolutions aprendre devra
etre env0ye achaque associe, et chaque associe votcra par ecrit (ces votes pomTont ctre produits par
lettre, telecopie, OU COUrrieJ (e-mail)).
Art. 15. Droits de vote des assocics, quorum ct majorite. L'associe unique exerce Jes pouvoirs
devolus al'assernblee des associes.

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En cas de pluralite des associes, chaque associe peut participer aux decisions collectives.quel que
soit le nombre de parts qui lui appartiennent. Chaque associe a un nombre de voix egal au nombre de
parts qu'il possede ou represente. En cas de pluralitc d'associes, les decisions collectives ne sont
valablemcnt prises que pour autant qu'elles ont ete adoptees par des associes representant plus de la
moitie du capital social.
Cependant, lcs resolutions modifiant lcs statuts de la Societe ne pourront etre prises que de l'accord
de la majorite en nombre des associes representant au moins Jes trois quarts du capital social et la
nationalite de la Societe ne pourra etre changee que de l'accord unanime de tousles associes, sous
reserve des dispositions de la Loi de 1915.

Art. 16. Annee sociale. L'annee sociale de la Societe commence le I er mai de chaque annee et se
termine le 30 avril de l'annee suivante.
Art. 17. Comptes annucls. Chaque annee, au 30 avril, Jes comptcs sont arrctcs et, suivant le cas, le
gerant ou, en cas de pluralite de gerants, le conseil de gerance dresse un inventaire comprenant
l'indication des actifs et passifs de la Societe.
Chaque associe peut prendre connaissance de l'inventaire et du bilan au siege social de la Societe.

Art. 18. Distribution des benefices, reserves. Les profits bruts de la Societe figurant dans les
comptes annuels, deduction faite des frais generaux, amortissements et charges, constituent le
benefice net. Sur le benefice net, il est preleve cinq pour cent (5%) pour la constitution d'un fonds de
reserve jusqu'a ce que celui-ci atteigne dix pour cent (10%) du capital social de la Soci6te.
L'assemblee generale decide de !'affectation du solde restant du benefice net annuel. De plus,
l'assemblee generale approuvant Jes comptes annuels peut decider de faire des distributions a partir
des reserves distribuables de la Societe (y compris la prime d'cmission), dans les limites prevues par
la Loi applicable.
Une assemblee generate des associes peut decider de declarer et verser des dividendes interimaires a
partir du benefice net et des reserves distribuables de la Societe (y compris la prime d'emission),
dans les limites prevues par la loi applicable. En outre, le gerant unique ou, en cas de pluralite de
gerants, le conseil de gerance aura le pouvoir de declarer et verser des dividendes interimaires a
partir du benefice net et des reserves distribuables de la Societe (y compris la prime d'emission),
dans les limitcs prcvues par la Joi applicable. Le gerant unique ou, en cas de pluralite de gerants, le
conseil de gerance determinera les conditions generales de la declaration et du versement du
dividende interimaire, et plus particulierement le montant devant etre paye, la date et la nature du
paiement (par exemple en numeraire ou en nature).

Art. 19. Liquidation. Lors de la dissolution de la Societe, la liquidation sera faitc par un ou
plusieurs liquidateurs, associes ou non, nommes par les associes qui fixeront leurs pouvoirs et leurs
emoluments.
Lors de la liquidation de la Societe et une fois que toutes Jes dettes auront ete reglees ou
provisionnees, les actifs de la Societe seront distribues aux associes proportionnellement au nombre
de parts qu'ils detiennent.

Art. 20. Commissaire aux comptcs - Reviscur d'entrcprises. Conformement a l'article 200 de la
Loi de 1915, la Societe doit etre controlee par un commissaire aux comptes seulement si elle a plus
de 25 (vingt-cinq) associes. Un reviseur d'entreprises doit etre nomme si l'exemption prevue a
!'article 69 (2) de la loi du 19 decembre 2002 concem ant le registre de commerce et des societes ainsi
que la comptabilite et lcs comptes annuels des cntreprises n'est pas applicable.
Art. 21. Reference aux dispositions Iegales. Pour tout ce qui n'est pas regle par les presents statuts,

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Memorial C

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Jes associes s'en referent aux dispositions legales de la Loi de 1915.

Souscription et Liberation
La partie cornparante declare qu'elle souscrit les 25.000 (vingt-cinq mille) parts social es ayant une
valeur nominale de 1 USO (un dollar des Etats-Unis d'Amerique) chacune, representant la totalitc du
capital social de la Socicte.
Toutes ces parts socia{cs ont ete entierement liberees au moyen d'un apport en numeraire d'un
montant de 25:000 USO (vingt-cinq mille dollars des Etats-Unis d'Amerique), de fayon ace quc
laditc somme !:oit a la jbrc disposition de la Societc, preuve ayant ete donnec au moycn d'un
certificat de blocage. l.c notaire confirme exprcsscmcnt la disponibilitc des fonds ainsi verses.
'}.

L'appori. en nu111crairc :i'un montant total de 25.000 USD (vingt-cinq millc dollars des Etats-Unis
d'Amerique) fa:~ en fa1cur de la Societe doit ctrc affcct6 au capital social nominal de la Socicte.
.

'

Dispositions transitoires

Le premier exercicc social commence aujourd'hui ct prend fin le 30 avril 20 l 0.

Evaluation des frais


Le montant des frais, depenses, remunerations ou charges, sous quelquc forme que ce soit qui
incombent a la Societc ou qui sont mis asa charge en raison de sa constitution, s'eleve a
approximativement EUR 1.500.-.

Assemblee generate constitutive


Immediatement apres la constitution de la Societe, l'associe unique reprcscntant la totalite du capital
souscrit a pris ks resoiutions suivantes:
I. le nom.bre de gcrani ~ est fixc a 2 (deux). Sont nomm6s par l'assemblec pour unc periode
indetenninee:

(i) Monsieur Emanuel: Vare, employe chez Heinz en tant que Directeur Financier Europeen, ne le
21mars1967 aMilan (Italic), rcsidant professionncllement au Via Cascina be! Casule 7, 20141
Milan (Italic), en tant quc gerant avec pouvoir de signature A;
(ii) Madame Yimnick Poos, employee, ne le 19 avril 1968 a Libramont (Belgique), residant
professionnellemcnt au 5, rue Guillaume Kroll, L-1882 Luxembourg, en tant quc gerant avec
pouvoir de signature B; ct
2. le siege social de la societe est etabli au 9A, rue Robert Stiimper, L-2557 Luxembourg.
Le notaire soussignc, qui a personnellement la connaissance de la langue anglaise, declare quc la
partie comparante l'a requis de documenter le present acte en langue anglaisc, suivi d'une version
fran9aise, et, en cas de divergence entre le texte anglais et le texte fran9ais, le texte anglais fera foi.
Dont acte, fait et passc aLuxembourg, date qu'en tcte des presentes.
Et apres lecture: faite et interpretation donnee au mandutaire de la partie comparante, celui-ci a signe
Jc present acte avec le notaire.

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Page 13of13

Memorial C

Signe: J. CROWE et H. HELLINCKX.

Enregistrc Luxembourg A.C., le 7 decembre 2009. Relation: LAC/2009/52539. Re9u soixantequinze euros (75,- EUR).

Le Receveur (signe): F. SANDT.


POUR COPIE CONFORME, delivree aux fins de la publication au Memorial, R~~ueil des Societes
et Associations.
.~ , . '
'

Luxembourg, le 14 decembre 2009.

..

Henri HELLINCKX .

Reference de publication: 2010000396/423.


(090194224) Depose au registre de commerce et des societes de Luxembourg, le 17 de~embre 2009.

file://C:\Documents and Settings\kosmatci\Loca! Settings\Temp\notesEA3 12D\2010 0... 09/03/20 10

Appendix 3
Articles of Association of Heinz Canada Holdings ULC

(13)

Date and Time: January 22, 2009 09:09 AM Pacific Time

BRITISH
COLUMBIA
1lic Sm Place on Earth

Ministry
of Finance.
BC Registry Services

='. Mailing Address:


.:.. PO BOX 9431 Stn Prov Govt.
i..
Victoria BC V8W9V3
.: www.corporateonline.gov.bc.ca
.' , l . '

Location:
: . . . .
2nd Fl~r - 940 ~i_fnshard St
'.
Victoria'BC
<"
:: '
250 358-86Z6 .;!.
I .;
. ..
'

Notice of Alteration
(.
Converting a BC Company
to a.BC Unlimited Liabi_lity Company:~

... "

'

FORM48

BUSINESS CORPORATIONS ACT


Sections 257 and 51.31

NOTICE OF ALTERATION FROM A BC COMPANY TO BECOME A BC UNLIMITED UABILITY COMPANY

Incorporation Number:

Name of Company:

BC0843912

HEINZ CANADA HOLDINGS LTD.

Name Reservation Number:

Name Reserved:

NR8624006

HEINZ CANADA HOLDINGS ULC

The alteration is to take effect at the time that this application is filed with the Registrar.
CHANGE OF NAME OF COMPANY
From:

To:

HEINZ CANADA HOLDINGS LTD.

HEINZ CANADA HOLDINGS ULC

BC0.S(3912 P<ige: 1 of 1

DUPLICATE

.{~~i
}

Number: BC0843912

t$
+",;:.~
~ ...

:lt ;

BRITlSH

COLUMBIA
1he Bcsc Pla.c.e on Earth

CERTIFICATE
OF
' .
"

CHANGE OF NAME
..

..
..

'

...

Bf:J.SINESS CORPORATIONS ACT

'l'

:~~;;~
,,

.\

-.. .
\'

. ..;.
~

'

I He:-dby c~. ; :~ify th; .=.8EINZ CANADA HOLDINGS LTD. changed its name to HEINZ CANADA
HOLDlNGf; ULC c J January. 22, 2009 at 09:06 AM Pacific Time.

Issued under my hand at Victoria, British Columbia


On January 22, 2009

~
RON TOWNSHEND

Registrar of Companies
Province of British Columbia
Canada

'.

'

.,

.. ..

".

~ . BRITISH

( . . . . COLUMBlA
The Bat Plc on Eanli

Ministry
ofFlnance
BC Registry Services

locaflOi):; .~

Malling Address:
PO BOX 9431 Sin Prov Govt.
' ' "./Ict9rla BC VBW 9V3
www.corporaleonllne.gov.bc.ca

.. ..
2nd Floor 940 Bfan1>hard St.
Victoria BC
'
250 3566626

CERTIFIED COPY
Of a Document llled with tho Province of
British Columbia Registrar of Companies

Notice of Articles
BUSINESS CORPORATIONS ACT

~
RON TOWNSHEND
January 22, 2009

~1t:n1lmiWMm~~~k,~&~1ili~ii"VTu~~~li~llWb.B~~}~!f!~lr~~,l~~A1&w.1~~111~~i.~D\~~~~r&~I~~~\~~~~ll

NOTICE OF ARTICLES

An unlimited liability company must set out on the face of each share certificate the fo!!owing statement:
"The shareholders of this company are jointly and severally liable to satisfy t he debts and liabilities of this
company to the extent provided in section 51 .3 of the Business Corporations Act."
Name of Company:

HEINZ CANADA HOLDINGS ULC.

m!i~~~Wr~~m~~1t~iMl"~*JJ~llkJ1Jii~~~liif~m~~1~rRJ~WAlfB~l'~~'~ll{~mr.r~~1~u~~,,l{~~lWJ~~ffi~1~~~~~1~~~~~1
REGISTERED OFFICE INFORMATION
Malling Address:
SUITE 1700, PARK PLACE
666 BURRARD STREET
VANCOUVER BC V6C 2X8

CANADA

Delivery Address:

SUITE 1700, PARK PLACE


666 BURRARD STREET
VANCOUVER BC V6C 2X8

CANADA

~~~~~~~11:8.llll\T.~~!.~~~~t~,.B~~~!~~~~~f~~~M~~~~~~~$f~~~D.~%l~D~~~ilt'.f~LV~~t.'.Wt11!,~..
RECORDS OFFICE INFORMATION
Mailing Address:
SUITE 1700, PARK PLACE
666 BURRARD STREET
1. . , NCOUVER BC V6C 2X8

CANADA

Delivery Address:

SUITE 1700, PARK PLACC:


666 BURRARD STREET
VANCOUVER BC V6C 2X8
CANADA

BC084~912

Page: 1of2

I
I

~'

~w&~W#.~~WMl~~1~tJ.-~~tl~~r&.r~~~~~~~~~~;J;~~~m~:~~~r~~.1.?z.J11li~~~~Th~U~j,f~~~~~1:~~1~~~~1i.~~1~i(@Ji~~~~1~~~~~4;~wJ1
OIRECTO~ INFO:~MATIO :~

..

Last Nam~, First'~ame; l iiddle Nam~:

G)l11)bino.;..;.-:.1na

:>: . :L~

~.-'

.........
Del ivcq~ Address:
57 SIR WILLIAMS LANE
TORONTO ON M9A 1V2 .
CANAt1A

M~iling P1~:dress ""

6'7 SIR Wl~.LIAM: :.ANE


TORONT'..':' ON ''9A 1W
CANADA
' ..;1 .

Delivery Address:
2324 REBECCA STREET
OAKVILLE ON L6L 2A8
CANADA

Malling Acldress:
2324 REBECCA STREET
'OAKVILLE ON L6l2AO
'CANADA

Last Name, First ~ame, 11t:ld dle Name:


Wollaston, Jon

Delivery Address:
1 STRATHCONA AVENUE
TORONTO ON M4K 1K6
CANADA

Mailing Address:
i STRATHCONA AVENUE
.TORONTO ON M4K '1 K6
CANADA

i
i
i'
I

tM~~~~Tur1~~i;iffir~i1i~~~i~~~uNitJ~~t~llf.1~i~fi~~~1lli~t~~li~{~~rt%~~~tfj~~~~~~~~~r~~~~~~m[.~~~f~1r~~i~~~~:c~1~&~~1~~f~li~~~r~~&~~[~~~?r~

-~IHOfil~ED.S.H.~aRE.SIJ:nU..c:_T.u_R_Ep- -- - - - - - . . - - - - - - - - - - - - - 1.

No Maximc;,1

Common Shares

Without Par Value

Without Special Aigl'its or


Restfictions attached
._...,..,......
.

_ _ __ _ _ _ __

--.in
uu
:.r.--.o.~~; 9--.-Jl'l1loll

2,

No ~;1aximu:11

Class A Freferred Sham~

,. -_ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ __

Without Par Value


With Special Rights or
Restrictions attached

.
i

BC06~9 12

Page: 2 of 2

:.
, .

ARTICLES

.::

HEINZ CANADA HOLDINGS LTD.


(the "Company'')

:- "' .

The Company will have as its Articles on amalgamation the


. ,following
. . Articles:
., .

"'J.,'

. ...

Dat~ of signinit.iq

Signature and full name of a Director of the


pany

.: ~ .

, , '
'

.
,

January 2L 2009

'

',(

.. . ./

.
'

Recognition No.
ARTICLES
HEINZ CANADA HOLDINGS LTD.
(the "Company")

PARTl
INTERPRETATION
1.1

Definitions

In these Articles, unless the context otherwise requires:


(1)

"appropriate person", has the .meaning assigned in the Securities Transfer Act;

(2)

"board of directors'', "directors" and 11 board11 mean the cfu-ectors or sole director 0.
the Company for the time being;

(3)

"Business Corporations Act" means the Business Corpuraticr.s Act (Bri\ls.11 Cch:mbia)
from time to time in force and all amendments thereto and includes ::!ll reg:~ations
and amendments thereto made pursuant to that Act;

(4)

"Interpretation Act'' means the Inlerpretlltion Act (British Columbia) from time to
time in force and all amendments thereto and includes all rcgulatior.s and
amendments thereto made pursuant to that Act;

(5)

"legal personal representative" means the personal or other legal representative of a


shareholder;

(6)

"protected purchaser" has the meaning assigned in the Securities Transfer Act;

'

'

I".

'

.'.\S

.:

:~

;i

..
.
.,.

'

...

,,

H.

...

<.
~

'"'
.-.

...

'f

..

means ~e shareholder's address as recorded

(7)

"~~gister~;d addre$s" of a shareholder


in the ce1.':.tral securities register;

(8)

"seal" mf.ans the seal of the Company, if any.:

(9)

"Securit'ii!s Act"

means the Securities Act .(Bil'tish Columbia) from time to time m.force

a11d all ;:::;),endments thereto


IJtde PU: suant ta tl~t Act;

and include~'_;u regulations and amendments thereto


..

"t~.::uriti~? legisl~tion" m~a..'115 statutes. 't~nce~g the regulation of securities


fr~.rkets

.:,

(11)

_:m,.d tradfr,:g in secur,i.ties and the regulations, rules, forms and schedules
t..:::ler n (:se statute~, all as amended from time to time, and the blanket rulings and
1
c./Jers, :' amenck!d from time to time, issued by the securities commissions or
sJ.:rlilar : ! gulatory authorities appointed under or pursuant to those statutes;
"C.madi;-. \ securili.::s,legis!ation11 means thl>. securities legislation in any province or
b:.:Titory -,f Canadn and includes the Securities Act; and 11U.S. securities legislation11
:i:1::;ians tl'., ~ -securities legislation i...1 the federal juri'5cliction of the United States and in
a.1:.1 statp of the United States and includes the Securities Act of 1933 and the
S:~euritier.; Exchange Act of 1934;
11

Sec1tritfa9

Transfer Acf1 means the Securities Transfer Act (British Columbia) from

time to tlme in force and all amendments thereto and includes all regulations and
amendments thereto made pursuant to that Act.

1.2

Business Corporations Act and Interpretation Act Definitions Applicable

The definitions in the Business Corporaf:Wns Act and the definitions and rules of construction
in the Interpretation Act, with the necessary changes, so far as applicable, and unless the
context requires otherwise, apply to these Articles as if they were an enacbnent If there is a
conflict bi:.tween a definition in the Business Corporations Act and a definition or rule in the
Interpretation Act relating to a term used in ther.i:: Articles, the definition in the Business
Co:porations Act Nill prevail in relation to the use of the term in these Articles. If there is a
conflict or inco\ :sistency i:>etween these Articles and the Business Corporations Act, the
Buriness C.-Jrporal-.Jns Act will prevail.

PART2
SHARES AND SHARE CERTIFICATES

2.:i

Au.tltoriz~:d Share Stl'ucture

Toe authodzed ~hare structure of the Company consists of shares of the class or classes and
se~'ies, if any, described in the Notice of Articles of the Company.
2.2

Fo1m of Ghare Certificate

Ea.::h share certificate issued by the Company must comply with, and be signed as required
by, the Business Corporations Act.
-2-

2.3

Shareholder Entitled to Ce~icate.9r Acknowledgment

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Unless the shares of which the shareholder is the registered owner are uncer~cated shares,.
each shareholder is entitled, without charge, to (a) one share certificate ;Jpresen~g the'
shares of each class or series of shares registered in the shareholF!er's nam.e. or (b) .a non7
transferable written acknowledgment of . the. shareholder's right to obtail) such . a share.
certificate, provided that in respect of a share held jointlyby severcil person~t the Cqmpany
is not bound to issue more than one share. certificate or acknowledgment a11~ delivry of a
share certificate or an acknowledgment to one of several joint sivueholde~~ or to:. a duly
authorized agent of one of the joint shareholders will be sufficient delivery to aU.
2.4

Delivery by Mail

Any share certificate or non-transferable written acknowledgment of a shareholder's right to


obtain a share certificate may be sent to the shareholder by mail at the shareholder's
registered address and neither the Company nor any director, officer or agent of the
Company is liable for any loss to the shareholder because the share certificate or
acknowledgement is lost in the mail or stolen.
2.5

Replacement of Worn Out or Defaced Certificate or Acknowledgement

If the directors are satisfied that a share certificate or a non-transferable written


acknowledgment of the shareholder's right to obtain a share certificate i::l worn out or
defaced, they must, on production to them of the share certificate or ackn0wledgment, as
the case may be, and on such other terms, if any, as they think fit:
(1)

order the share certificate or acknowledgment, as the case may be, to be CC\11celled;
and

(2)

issue a replacement share certificate or acknowledgment, as the case may be.

2.6

Replacement of Lost, Pestroyed or Wrongfully Taken Certificate

If a person entitled to a share certificate claims that the share certificate has been lost,

destroyed or wrongfully taken, the Company must issue a new share certificate, if that
person:
(1)

so requests before the Company has notice that the share certificate has been
acquired by a protected purchaser;

(2)

provides the Company with an indemnity bond sufficient in ilie Company's


judgement to protect the Company from any loss that the Company may suffer by
issuing a new certificate; and

(3)

satisfies any other reasonable require:ments imposed by the directors.

A person entitled to a share certificate may not assert against the Company a claim for a
new share certificate where a share certificate has been lost, apparently destroyed or
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wr.ongfo_.~y tak<, : l,f that p8 son fails to notify the Company of that fact within a reasonable
u:ae aft~~ that i ~uson ha:; notice of it and the Company registers a transfer of the shares
n~preSeJ'.", :;~d by _,., .\e certific..ate before receiving a rco~ce of the loss, apparent destruction or
w1',ongfr;~ iaking,. )f the shar.e certifka~e.

,.,.
2./

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Ri!t:OVe!J f New Share Certificate

If, after the iss1~':! of a n~~v share certificate, a potected purchaser of the original share
certificate prese.:.~.ts the original share certificate. (or the registration of transfer, then in
addition :o any ;:ights on any ind~ty bond, t!1e. Company may recover the new share
certificate from r;: person to whom it was issued: or any person taking under that person
other tha:' a prot.~cted purchaser.

2.6

Sr1iittinfY~$hare

Certificates

If a share.."lolder surrenders a share certificate to the Company with a written request that
the Company i:.;sue in the shareholder's name two or more share certificates, each
representing a cpecified number of shares and _in the aggregate repJ:esenting t..h.e same
m:.rnber of share.'1as represented by the share certificate so surrendered, the Company must
cC:U1cel t'.v: sun :ndered share certificate and i,ssue replacement share certificates in
ac::ordar. :~ with ~hat request.
:..'

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Tnere m :'.st be r..id to the Company, in relation t<) the is!;ue of any share certificate under
Ar!:ides :.5, 2.6 c: 2.8, the amount, if any and which must not exceed the amount prescribed
under the Busin.e(s Corporations Act, determined by the directors.
2.10

R.ecognitfan of Trusts

Except as requitFltl by law or statute or these Artides, no person will be recognized by the
Company as ho:kling any share upon any trust, and the Company is not bound by or
compelled in any way to recognize (even when having notice thereof) any equitable,
contingent, futui;:~ or partial interest in any share or !racti~n of a share or (except as reqwred
by law or statutci or these .Articles or as ordered by a court of competent jurisdiction) any
other rights in r!:spect of any shara except an absolute right to the entirety thereof in the
shareholder.

PART3
ISSUE OF SHARES
3.1

D.\1ectors Authorized

Sul~ect t<)-~'.!le

Bi!sitiess Corporations Act and the rights, if any, of the holders of issued shares
of the Ce::npany, the Company may issue, allot, sell or otherwise dispose of the unissued
shares, and issur:!d shares held by the Company, at the times, to the persons, including
_directors,.i.n the 1r1ar.ner, on the termsand condil'ions and for the issue prices (including any
preiirlum.at whic'~1 shares with par value may be issued) that the directors may determine.
4-'

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The issue price for a share with par value must be equal to or greater than 4e par value o(
the share.
'

...

3.2

Commissions and Discounts

The Company may at any time pay a reasonable commission or allow a reasonable d,iscount
to any person in consideration of that person purchasing or agreeing to purchase shares of
the Company from the Company or any other person or procuring or agreeing to procure
purchasers for shares of ~e Company.

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3.3

B'rokerage

The Company may pay such brokerage fee or other consideration as may be lawful for or in
connection with the sale or placement of its securities.

3.4

Conditions of Issue

Except as provided for by the Business Corporations Ad, no share may be is:;ued uGtil it is
fully paid. A share is fully paid when:
(1)

consideration is provided to the Company for the issue of the share by one or more
of the following:
(a)

past services performed for the Company;

(b)

property;

(c)

money; and

(2)

the value of the consideration received by the Company equals or exceeds the issue
price set for the share under Article 3.1.

3.5

Share Purchase Warrants and Rights

Subject to the Business Corporations Act, the Company may issue share purchase warrants,
options and rights upon such terms and conditions as the directors determine, which share
purchase warrants, options and rights may be issued alone or in conjunction with
debentures, debenture stock, bonc?.s, shares or any other secu.".ities issued er r.reated by the
Company from time to time.

PART4
SHARE REGISTERS
4.1

Central Securities Register

As required by and subject to the Business Corporations Act, the Company mnst maintain a
central securities register. The directors may, subject to the Business Corporations Act, appoint
an agent to maintain the central securitiet; register. The directors may also appoint one or
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more agents, in:.:luding the agent which keeps the central securities register, as transfer
agent for its shri-es or any class or series of its shares, as the case may be, and the same or
another ilgent a:; registrar for its shares or sucl1 class or series of its shares, as the case may
b. The c.lirecto":s may terminate such appoir,tment of any agent at any time and may
a:~point ::nother lgent in ita place.
I:

4.2

;.

c.:~osing _1.egister

.t, .

1 ~ ~e CoL. ~1any ix 'lSt not at any time dose its centn:l. securities register.
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PARTS

SHARE TRANSFERS
5.1

. )I

Rc-:gisteri :ig Transfers

Subject' t~ the B~siness Corporations Act, a transfer of a share of the Company must not be
registered unless the Company or the transfer agent or registrar for the class or series of
share to be transferred has received:

(1)

in the ca~e of a share certificate that has been issued by the Company in respect of
the share to be traJ:lSferred, that share certificate and a written instrument of transfer
(which may be on a separate document or endorsed on the share certificate) made by
the shareholder or other appropriate persm1 or by an agent who has actual authority
to act on ):>ehalf of that person;

(2)

in the case of a non-transferable written acknowledgment of the shareholder's right


to obtain a share certificate that has been issued by the Company in respect of the
s:.\are to b transfetred, a written instrument of transfer, that directs that the transfer
o;. fue sl'~res be registered, made by the shareholder or other appropriate person or
b/ an agi:. lt who has actual authority to act on behalf of that person;
ir .J1e ca . of a share that !s an uncertificat ~d share, a written instrument of transfer,
tb: t dire<.'J; that t:hi> transfer of the share be registered, made by the shareholder or
o'.!.~er aF! opriate person or by an agent wh> has actual authority to act on behalf of
tl'.ot pers:: .:l; and

(4)

such oth(!)' evidence, if any, as the Company or the transfer agent or registrar for the
class or series of share to be transferred may require to prove the title of the
transferor or the transferor's right to transfer the share, that the written instrument of
transfer is genuine and authorized and that the transfer is rightful or to a protected
purchaser.

5.2

Form of Instrument of Transfer

The instrument of transfer in respect of any share. of the Company must be either in the
form, if any, on the back of the Company's share certificates or in any other form that may
be approved by the directors or the transfer agent for the class or series of shares to be
transferred.
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5.3

Tr.a nsferor Remains Shareholder ' ,

Except to the extent that the Business Corporations Act otherwise provides, tlte transferor of
shares .is deemed to remain the holder of the shares until the. name of the. transferee i&.
entered in a securities register of the Company in respect of the transfer.

5.4

. ll .

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Signing of Instrument of Transfer


'r ".

If a shareholder, or his or her duly authorized attorney; signs an.instrumel}t-of transfer in


respect of shares registered in the name of the shareholder, the signed instru.;o:l.ent of transfer
constitutes a complete and sufficient authority to the Company' and its directors.; officers
and agents to register the number of shares specified in the instrument of transfer or
specified in any other manner, or, if no number is specified, all the shares represented by the
share certificates or set out in the written acknowledgments deposited with the instrument
of transfer:

(1)

in the name of the person named as transferee in that instrument of transfer; or

(2)

if no person is named as transferee in that instrument of transfer, in the name of the


person on whose behalf the instrument is deposited for the purpose of having the
transfer registered.

5.5

Enquiry as to Title Not Required

Neither the Company nor any director, officer or agent of the Company is bonnd to inquire
into the title of the person named in the instrument of transfer as transferee or, if no person
is named as transferee in the instrument of transfer, of the person on whose behalf the
instrument is deposited for the purpose of having the transfer registered or is liable for any
claim related to registering the transfer by the shareholder or by any intermediate cwner or
holder of the shares, of any interest in the shares, of any' share certificate representing such
shares or of any written acknowledgment of a right to obtain a share certificate for such

~~.

5.6

Transfer Fee

There must be paid to the Company, in relation lo the registration of any traru:fer, the
amount, if any, determined by the directors.

PART6
TRANSMISSION OF SHARES
6.1

Legal Personal Representative Reccgnized on Death

In the case of the death of a shareholder, the legal personal represeutative of the
shareholder, or in the case of shares registered in the shareholder's name and the name of
another person in joint tenancy, the surviving joint holder, will be the only person
recognized by the Company as having any title to the shareholder's interest in the shares.
Before recognizing a person as a legal personal representative of a shareholder., the directors
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IY require th~' original grant of probate or letters of administration or a court certified


copy of them
the original or a court certified or authenticated copy of the grant of
representation, -,vill, order or other instrument or other evidence of the death under which
title to the sharet.i or securities is claimed to vest.

or

6.2

ru ghts O.~ Legal Personal Representative

The legal personal representative of a shareholder has the same rights, privileges and
obligations that ~.ittach to the shares held by the shareholder, including the right to transfer
the shar~s in ai:cordance with these Articles, if appropriate evidence of appointment or
ir.c'Umb~.ucy wK}.rin the meaning of the Securities Transfer Act has been deposited with the
Company. This} Article c:2 does not apply in the .case of the death of a shareholder with
rei>pect f.v sharE registred in the shareholder's ltame and the name of another person in
jo~nt ten..~1cy.

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PART ?
ACQUISITION OF COMPANY'S SHARES
'?.:J.

(,.:t:,mpanJ Authorized to Purchase or Othel'wise Acquire Shares

Subject tJ Arti,i.! 7.2, the special rights or restricticns attached to the shares of any class or
series of shares and the B~siness Corporations Act, the Company may, if authorized by the
directors, purchli.se or otherwise acquire any of its shares at the price and upon the terms
determined by the directors.
7.2

No Purchase, Redemption or Other AcquiGition When Insolvent

The Company must not make a payment or provide any other consideration to purchase,
redeem or other<Nise acquire any of its shares if there are reasonable grounds for believing
that:

(1)

the Comt- any is insolvent; or

(2)

nwking t '.1 e payment or providing the cousideration would render the O:impany
inr,olwmt.

7.3

S~e

and ./oting of Purchased, Redeemed or Otherwise Acquired Shares

If :he Company retains a share redeemed, purchased or otherwise acquired by it, the
Company may st?ll, gift or otherwise dispose of the share, but, while such share is held by
th~ Company, it
(1)

is l l.Ot entitled to vo~ the share at a meeting of its shareholders;

(2)

must not pay a dividend in respect of the share; and

(3)

must not make any other distribution in respect of the share.


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PARTS
BORROWING POWERS

8.1

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Borrowing Powers

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The Company, if authorized by the director~, may:


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(1)

borrow money in the manner and amount, on the security, from the sources and on
the terms and conditions that the directors consider appropriate;
.1
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(2)

issue bonds, debentures and other debt obligations either outright'or as security for
any liability or obligation of the Company or any oth~r person and at such discounts
or premiums and on such other terms as the directors consider appropriate;

(3)

guarantee the repayment of money by any other person or the performance of any
obligation of any other person; and

(4)

mortgage, charge, whether by way of specific or floating charge, grant a security


interest in, or give other security on, the whole or any part of the present and future
assets and undertaking of the Company.

PART9
ALTERATIONS

9.1

Alteration of Authorized Share Structure

Subject to Article 9.2 and the Business Corporations Act, the Company may by directors'
resolution, unless an alteration to the Company's Notice of Articles would be required, in
which case by ordinary resolution:
(1)

create one or more classes or series of shares or, if none of the shares of a class or
series of shares are allotted or issued, eliminate that class or series of shares;

(2)

increase, reduce or eliminate the maxim.um number of shares that the Company is
authorized to issue out of any class or series of shares or establish a maximum
number of shares that the Company is authorized to issue out of any class or series
of shares for which no maximum is established;

(3)

subdivide or consolidate all or any of its unissued, or fully paid issued, shares;

(4)

if the Company is authorized to isSl.!e shares of a class of shares with par value:
(a)

decrease the par value of thoze shares; or

(b)

if none of the shares of that class of shares are allotted or issurd, incre:ise the
par value of those shares;

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(S)

:-:! or any of its Unissued, or fully paid issued, shares with paI value into
,\ ;;h out par value or any of its unis;,;c.ed shares without par value into shares
1

\ :.h pa:' ':llue;

c_ ,.mge

~ '..:ires

{t)

a ~it!r th~

(':"

r, ..terwis alter its sr.ares or authorized sh:::.;:e structure when required or permitted
t~: 'do so '\r the Business Corporations Act;

:lentifyir.r; name of any of its sharts; or

cu\d, if ariplicab;,'_:, alter its Notice of Articles and, il applicable, its Articles, accordingly.
. .. ,

9.2

\1

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Special T<'. ights or Restrictions

Subject to the Budness Corporations Act, the Company may by ordinary resolution:

'

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(1)

create special rights or restrictions for, and attach those special rights or restrictions
to, the sh,i.res of any class or series of shares, whether or not arly or all of those shares
have been issued; or

(2)

vary or d!?lete any special rights or restrictions attached to the shares of any class or
s<:ries of 1:hares, whether or not any or all of those shares have been issued;

and alter i'.s Articles and Notice of Articles accordingly.

9.:.\

C. i"nge : Name

The Com;:any m.,y by dire~tors' resolution authorize an alteration to its Notice of Articles in
order to <.hange i !.s name.

9.4

O i.; 1er At: ~rations

If the Busi;:.ess Q,.porations Act does not specify th e type of resolution and these Articles do
not specif/ anofr er type of resolution, the Company may by ordinary resolution alter these
Articles.

PART l O
MEETINGS OF SHAREHOLDERS

10.1

Annual General Meetings

Unless an annual general meeting is deferred or waived in accordance with the Business
Corporations Ad, the Company must hold its first annual general meeting within 18 months
after the ~ate on, which it was incorporated or otherwise recognized, and after that must
hold an arm al r,eneral meeting at least once in each calendar year and not more than 15
months after the last annual reference date at such lime and place as may be determined by
the directors.

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10.2

Resolution Instead of Annual General Meetin g

If all the shareholders who are entitled ~ vote at an annual general meetin9 cons~t by a
unanimous resolution to all of the business that is required to be transacted at that annual
general meeting, the annual general meeting is deemed to have been held on.the date of the
unanimous resolution. The shareholders mU.St, in any unanimous' resolution passed under
this Article 10.2, select as the Company's annual reference date a date that would be
appropriate for the holding of the applicable annual general meeting.

10.3

Calling of Meetings of Shareholders

The directors may, at any time, call a meeting of shareholders, to be held at such time and
place as may be determined by the directors.
10.4

Notice for Meetin gs of Shareholders

The Company must send notice of the date, time and location of any meeting of
shareholders (including, without limitation, any notice specifying the intenticn to propose a
resolution as an exceptional resolution, a special resolution or a special separate resolution,
and any notice to consider approving an amalgamation into a foreign jurisdict_ion, an
arrangement or the adoption of an amalgamation agreement, and any notice of a general
meeting, class meeting or series meeting), in the manner provided in these Articles, or in
such other manner, if any, as may be prescribed by ordinary resolution (whether previous
notice of the resolution has been given or not), to each shareholder entitled to attend the
meeting, to each director and to the auditor of the Company, unless these Articles otherwise
provide, at least the following number of days before the meeting:

(1)

if and for so long as the Company is a public company, 21 days;

(2)

otherwise, 10 days.

10.5

Record Date for Notice

The di~ectors may set a date as the record date for the purpose of determining shareholders
entitled to notice of any meeting of shareholders. The record date must not p::ecede the date
on which the meeting is to be held by more than two months or, in the case of a general
meeting requisitioned by sharehold ers under the Business Corporations Act, by more than
four months. The record date must not precede the date on whic.h the mec.ing is held by
fewer than:
(1)

if and for so long as the Company is ,.l public company, 21 days;

(2)

otherwise, 10 days.

If no record date is set, the record date is 5 p .m. on the day immediately preceding the first
date on which the notice is sent or, if no notice is sent, the beginning of the me?.ting.

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Re cord I::'iate for Votjng

The directors mny set a da'te as the record date fol' the purpose of determini..'lg shareholders
entitled ~c vote ;~t any me~ting of shareholders. The record date must not precede the date
en whk.h the 1~\'eting is to be held by more than two months or, in the case of a general
n:keting requi.:jl :oned by shareholders under the f3usiness Corporations Act, by more than
fcv.:r mc1~1.1;hs. jj \O recozd date is set, the r ecord . date is 5 p.m. on the day immediately
p l':'cedh1-" the f)._:it date or;. which the notice is sent or, if no notice:: is sent, the beginning of
tly:: meef :g.
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'lure .,;~,

Give NC',~ice anrl Waiver of Noth:.:

The acd,_.mtal ;~dssion t~::iend noti~e of any me~ting of shareholders to, or the non-receipt
of any !\~,,ice by_. ~,ny of thQ person.<; entitled to noti.ce does not invalidate any proceedings at
that meei.lng. /\;ij person entitled to notice of a meeting of shareholders may, in writing or
otherwise, waive~ that entitlement or agree to reduce the period of that notice. Attendance of
a person at a mc'.ting of shareholders is a waive:r of entitlement to notice of the meeting
unless that pe:5on attends the meeting for the express purpose of objecting to the
transaction of any business on the grounds that the meeting is not lawfully called.
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1018

Notice of Special Business at Meetings of Shareholders

If a meetiug of r.hareholders is to consider special business within the meaning of Article


11.1, the notice of meeting must:
(1)

state the general nature of the special business; and

(2)

sp~~cial business includes considering, approving, ratifying, adopting or


auihorizh1g any document or the signing of or giving of effect to any document,
hi~"'e atta hed to it :l copy of the document or state t11at a copy of the document will
br.. wailat l.e for inspection by shareholders:

10.9

if the

(a.

a~ the Company's records office, or at such other reasonably accessible


ioration in British Columbia as is specified in the notice; and

(F

lh :ing statuto1y business hours on my one or more specified days before the
d:.1:;r set for the holding of the me~ting.

Notice of Dissent Rights

The Company must send to each of its shareholders, whether or not their shares carry the
right to vote, a notice of any meeting of shareholders at which a resolution entitling
shareholders to dissent is to be considered specifying the date of the meeting and containing
a statement advising of the right to send a notice of dissent together with a copy of the
proposed resolu~on at least the following number of days before the meeting:

(1)

ii and for so long as the Company is a public company, 21 days;


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(2)

o~erwise, 10 days.

PARTll

;.

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! ..

PROCEEDINGS AT MEETINGS OF SHAREHOLDERS !\ ~


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11.1

Special Business

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At a meeting of sh~reholders, the followingbusiness is special busfuess:

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is

(1)

at a meeting of shareholders that ic; not an annual general meetintau busfuess


special business except business relating to the conduct of or voting at the me"e_ting; ,

(2)

at an annual general meeting, all business is special business except for the
following:

11.2

(a)

business relating to the conduct of or voting at the meeting;

(b)

consideration of any financial statements of the Company presented to the


meeting;

(c)

consideration of any reports of the directors or auditor;

(d)

the setting or changing of the number of directors;

(e)

the election or appointment of directors;

(f)

the appointment of an auditor;

(g)

the setting of the remuneration of an auditor;

(h)

business arising out of a report of the directors not requiring the passing of a
special resolution or an exceptional resolution;

(i}

any other business which, t:.nder these Articles or the Busine:;s Corporations
Act, may be transacted at a meeting of shareholders without prior notice of
the business being given to the shareholders.

Special Majority

The majority of votes required for the Company to pass a special resolution at a general
meeting of shareholders is two-thirds of the votes cast on the resolution.
11.3

Quorum

Subject to the special rights or restrictions attached to the shares of any ciaos or series of
sha:es and to Article 11.4, the quorum for the transaction of business at a meeting of
sharehoiders is two persc;ms who are, or who represent by proxy, shareholders who, in the
aggregate, hold at least 5% of the issued sh:ires entitled to be voted at the meeting.
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C-Pe Sh<~,.cholder :.1ay Constitute Quorum

If there is only O~le shareholder entitled to vote at:-. meeting of shareholders:


(1)

the quorum is one person who is, or who represents by proxy, that shareholder, and

(2)

that shar~holder, present in person or by proxy, may constitute the meeting.

11.5

Persons ;;ntitled to Attend Meeting

In addition to tr.,ose perso;ns 1:11ho are entitled to vo,te at a meeting of shareholders, the only
other pe:n:ons e.i\titled to be present at the meeting are .the directors, the president {li any),
thi:: secretary {if any), the assistant secretary {if <iny), any lawyer for the Company, the
at.:ditor of the C:.mpany, any persons invited to be present at the meeting by the directors or
by the c::air of the meeting and any persons entitled or required under the Business
C;;porafi: ns Act or these kticles tc be present at the meeting; but if any of those persons
dc:es attc .d the :.!eeting, that person is not to be counted in the quorum and is not entitled
to vote a:. the mr' ~ting unless that person is a shareholder or proxy holder entitled to vote at
tl1emeeL:g.
11:6

R.~ :iuire.!. ;cnt of Quorum

N<> buswcss, ot.!i ~ than i:he election of a chair of ihe meeting and the acljoumment of the
meeting,' may be rransacted at any meeting of shareholders unless a quorum of shareholders
entitled to vote ~s present at the commencement of the meeting, but such quorum need not
be present throui~hout the meeting.
11.7

Lack of Quorum

lf, within one-hi.'.:if hour fiom the time set for the holding of a meeting of shareholders, a
quorum is not p1"'!sent:

(1)

in the c<\se of a general meeting requisitioned by shareholders, the meeting is.


dissolved, ap.d

(2)

in rhe case of any other meeting of shareholders, the meeting stands adjourned to the
same day in the next week at the same time and place.

11.8

L<.ck of Quorum at Succeeding Meeting

If, at the. meetir.5 to which the meeting referred to in Article 11.7(2) was adjourned, a
quorum :s .not pr~sent within one-half hour fyom the time set for the holding of the meeting,
the pers.o n or persons present and being, or representing by proxy, one or more
sha!'ehokicrs entitled to attend and vote at the meeting constitute a quorum.

11.9

Ouir

The following irtdividual is entitled to preside as chair at a meeting of shareholders:


-14-

. ~~

'I

~I~

:'J

(-

'

(1)

the chair of the board, if any; or

(2)

if the chair of the board is absen~ t?r unwilling to .act as chair of th~ meeting, the
president, if any.
'..

"\..

11.10 Selection of Alternate Chair

:ro

If, at any meeting of shareholders, there is.


chair of th~ board or president.present within
15 minutes after the time set for holding the meeting, or if the chair of the' board and the
president are unwilling to act as chair of the meeting, or if the chair of the board and the
president have advised the secretary, if any, or any director present at the meeting, that they
will not be present at the meeting, the diiectors present must choose one of theifiiumbei:"t o
be chair of the meeting or if all of the directors present decline to take the chair or fail to so
choose or if no director is present, the shareholders entitled to vote at the mo:!eting who are
present in person or by proxy may choose any person present at the meeting to chair the
meeting.
11.11 Adjournments
The chair of a meeting of shareholders may, and~ so directed by the meeting must, adjourn
the meeting from time to time and from place to place, but no business may be trans:tcted at
any adjourned meeting other than the bus!ness left unfinished at the meeting from which
the adjournment took place.
11.12 Notice of Adjourned Meetiug
It is not necessary to give any notice of an adjourned meeting of shareholders er of the
business to be transacted at an adjourned meeting of shareholders except that, when a
meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as
in the case of the original meeting.

11.13 Decisions by Show of Hands or Poll


Subject to the Business Corporations Act, every motion put to a vote at a meeting of
shareholders will be decided on a show of hands unless a poll, before or. on the dedaration
of the result of the vote by show of hands, is directed by the chair or demanded !:>y any
shareholder entitled to vote who is present in person or by proxy.
11.14 Declaration of Result
The chair of a meeting of shareholders must declare to the meeting the decision on every
question in accordance with the result of the show of hands or the poll, as the case may be,
and that decision must be entered in the minutes of the meeting. A declaration of t~'l<? chair
that a resolution is carried by the necess~ry majority or is defeated is, u::.less a poll i5
directed by the chair or demanded under Article 11.13, conclusive evidence without proof of
the number or proportion of the votes recorded in favour of or against the res )}~ti.on.

-15-

..

11..15 h1otion :eed Not be Seconded


I'.') mof:.-:t pro}. .)sed at a :iheeting of shareholder:; need be seconded tlnless the chair of the

m :?eting :.i les b. ierwise, and the chair of any meeting of shareholders is entitled to propose
o :;econ ~ a moi: -;u.
r,-

1 : 16 l
. .

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,,.

' .

In the ca:i:! of ar:...equality of votes, .t he chair of a n1eeting of shareholders does not, either on
a show cS~han'~: or on a J..id:ll, have a second or ca'3tlng vote in addition to the vote or votes
to which the chali may be entitled as a shareholdeA
11.17 Manner )f Taking Poll
Subject ro. Artid~ 11.18, if?. poll is duly demanded at a meeting of shareholders:

(1)

the poll rimst be taken:


(a)

ai:the meeting, or within seven days after the date of the meeting, as the chair
of the meeting directs; and

(b}

in the manner, at the time and at the place that the chair of the meeting
~Lects;

...

(1.1

e.>resl,.t"t;; of the.p oll is deemed to be the decision of the meeting at which the poll is
d .:mancl1 i; and
'

(3)

e 1.l dcrru:_1d for the: poll may be withdrawn by the person who demanded it.

li..18

[ cmand :or Poll 0~1 Adjournment

A poll d ~.nande.;,>: at a meE:ting of shareholders or. a question of adjournment must be taken


immediat:E'Jy at foe meeting.

11.19 Chair Must Resolve Dispute

In the case of an :; dispute as to the admission or rejection of a vote given on a poll, the chair
of the meeting must determine the dispute, and his or her determination made in good faith
is final and conclusive.
11.20 Casting of Votes
On a poll, a shareholder entitled to more than one vote need not cast all the votes in the
same way.
11.21

~o Dem~md for

Pon on Election of Chair

N o poll rnay be demanded in respect of the vote by. which a chair of a meeting of
sha:eholc:~rs is e~~cted.

- 16. .

' . .
.
.
The demand for a poll at a meeting of shareholders does not, unless the chair, of the m,eeting
so rul~, prevent the c~ntinuati()n of the In:eeting for the transaci:ion of any.1business other
than the question on which a poll has been demanded.

11.22 Demand for Poll Not to Prevent Continuance of Meeting

. .

11.23 Retention of Ballots and Proxies

.'' .

The Company must, for at least three months after a JI1eeting of shareholders, keep each
ballot cast on a poll and each proxy voted at the meeting, and, d~ring th;:lt p eriod, make
them available for inspection during normal business hours by any shareholder or
proxyholder entitled to vote at the meeting. At the end of such three mqnth period, the
Company may destroy such ballots and proxies.

PART 12
VOTES OF SHAREHOLDERS

12.1

Number of Votes by Shareholder or by Shares

Subject to any special rights or restrictions attached to any shares and to t.he restictions
imposed on joint shareholders under Article 12.3:
(1)

on a vote by show of hands, every person present who is a shareholder or proxy


holder and entitled to vote on the matter h<ls one vote; and

(2)

on a poll, every shareholder entitled to vote on the matter has one vote in respect of
each share entitled to be voted on the matter and held by that shareholder and may
exercise that vote either in person or by proxy.

12.2

Votes of Persons in Representative Capacity

A person who is not a shareholder may vote at a meeting of shareholders, whether on a


show of hands or on a poll, and may appoint a proxy holder to act at the meeting, if, before
doing so, the person satisfies the chair of the meeting, or the directors, that the person is a
legal personal representative or a trustee in bankruptcy for a shareholder who is entitled to
vote at the meeting.
12.3

Votes by Joint Holders

If there are joint shareholders registered in respect of any share:

(1)

any one of the joint shareholders may vote at any meeting of shareholders,
personally or by proxy/ in respect of the share as if that joint sharehok:er were solely
entitled to it; or

(2)

if more than one of the joint shareholders is present at any meeting of shareholders,
personally or by proxy, and more than one of them votes in respect of tha~ share,
~ 17-

....

.,...

...

then only the vote of the joint shareholder present whose name stands first on the
central sc~urities register in respect of the sluu-e will be counted.
12.4

Legal Pe; :;onal Reptesentatives as Joint Shareholders

Two or rnure leg.al personal representatives of a sh~reholder in whose sole name any share
is 1egiste.ed are, for the purposes of Article 12.3, deemed to be joint shareholders registered
in ?:espec.; 'Jf thar.; hare.

l:l.5

....

.:(''

,,-

R; ~>res~!J, ' )live of ~, Corporate Shareho Ide.:


.

If ,, corp ,:ation .1at is not a subsi.d iary of the co:npany is a shareholder, that corporation
may apf<'J.i.nt a .'!.rson to a~ as its representative at any meeting of shareholders of the
Company. and: i

(1}

(2)

fo; that purpose, the instrument appointing a representative must be received:

(<!)

at the registered office of the Company or at any other place specified, in the
notice calling the meeting, for the receipt of proxies, at l east the number of
business days specified in the notice for the receipt of proxies, or if np
rntmber of days is specified, two business days before the day set for the
holding of the meeting or any adjoul'ned meeting; or

(b)

at the meeting or any adjourned meeting, by the chair of the meeting or


a<ljoumed meeting or by a person designated by the chair of the meeting or
adjourned meeting;

if a

repr~..: entative is appointed under

this Article 12.5:

(~)

tb, representative is entitled to exe:dse in respect of and at that meeting the


sa. ne rights on behalf of the corporntion that the representative represents as
fr ~ corporalion could exercise ii it were a shareholder who is an individual,
i:H .luding, without limitation, the right to appoint a proxy holder; and

(c)

l.11 :epresentative, if present at the meeting, is to be counted for the purpose


of orming a quorum and is deemed to be a shareholder present in person at
th.; meeting.

Evidence of the 1:.ppointment of any such representative may be sent to the Company by
written instrument, fax or any other method of transmitting legibly recorded messages.
12.6

When Proxy Holder Need Not Be Shareholder

A person must not be appointed as a proxy holder unless the person is a shareholder,
although a person who is not a shareholder may be appointed as a proxy holder if:

(1)

the person appointing the proxy holder is a corporation or a representative of a


corporation.appointed under Article 12.5;
-18-

.,. ~ (2)

(3)

the Company has at the time of ~e meeting for which the proxy J:.'tolder i~ to be
appointed only one shareholder entitled to vote at the meetln'g;
.
'

..
.
'0
the shareholders present in per~on 'or by pro:xy at and .entitlecf ~o vot~ at the
meeting for which the proxy holder is to be appointed, by a <r'e soluhon on
which the proxy holder is not .entitled to v pte but in. respect.;,r.>f wh,!ch th~:
proxy holder is to be counted in the quorum, permit the proxy h9lder to attend and vote at the meetingi or

.1<
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,

'

'

' 4)

'

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(4)

the Company is a public company or is a pre-existing reporting company'


which has the Statutory Reporting Company Provisions as part 0 these
Articles or to which the Statutory Reporting Company Provisions apply.

12.7

When Proxy Provisions Do Not Apply to the Company

If and for so long as the Company is a public company or is a pre-existing reporting


company which has the Statutory Reporting Company Provisions as part of these Articles or
to which the Statutory Reporting Company Provisions apply, Articles 12.8 to 12.16 apply
only insofar as they are not inconsistent with any Canadian securities legislation applicable
to the Company, any U.S. securities legislation applicable to the Company or any rules of an
exchange on which securities of the Company are listed.

12.8

Appointment of Proxy Holders

Every shareholder of the Company, including a corporation that is a shareholder but not a
subsidiary of the Company, entitled to vote at a meeting of shareholders may, by proxy,
appoint one or more proxy holders to attend and act at. the meeting in the marmer, to the
extent and with the powers conferred by the proxy.
12.9

Alternate Proxy Holders

A shareholder may appoint one or more a!temate proxy holders to act in


absent proxy holder.

~he

place of an

12.10 Deposit of Proxy


A proxy for a meeting of shareholders must:
(1)

be received at the registered office of the Company or at any other pfoce specified, in
the notice calling the meeting, for the receipt of proxies, at least lhe number of
business days specified in the notice, or if no number of days is specified, two
buciness days before the day set for the holding of the meeting or any adjourned
meeting; or

(2)

unless the notice provides otherwise, be received, at the meeting or any adjourned
meeting, by the chair of the meeting or adjourned meeting or by a person designated
by the chair of the meeting or adjocrned meeting.
-19 -

'

"'

.,,

A proxy may be Si!nt to the Company by written instrument, fax or any other method of
transmitting legi';iy recorded messages.
12.11 Validity of Proxy Vote
A vote gi:en in ~.ccordance with the te:ms of a prnxy is valid notwithstanding the death or
incapaci~r of the :;hareholder giving the proxy and <despite the revocation of the proxy or the
revocatio1 ~ of th~~ authority under which the proxy is given, unless notice in writing of that
death, irn:e:pacil)' er revocation is received:

(1)

at the re~')stered office of the Company, at any time up to and including the last
buDiness iay before the day set for the h 1)lding of the meeting or any adjourned
~~eting ~~which the proxy is to be used; 01

(2)

at. :he mc~ting or any adjourned meeting, by the chair of the meeting or adjourned
ntr:eting, be.fore any vote in respect of which the proxy has been given has been

ta ~'en.
1~.12

Fi:irm of l wxy

A proxy, whethE.: for a specified meeting or otherwise, must be either in the following form
or in any other !t..:m approved by the directors or the chair of the meeting:

[name of company]
(the "Company")

The undersigned, being a shareholder of the Company, hereby appoints [name] or, failing
that person, [na~r,e), as proxy holder for the undersigned to attend, act and vote for and on
behalf of the un::iersigned at the meeting of shareholders of the Company to be held on
[month, C.iq, yea:] and at auy adjournment of that meeting.
Number o{ share.: in respect of which this proxy is given (if no number is specified, thE:n this
proxy is given :n respect of all shares registe:ed in the name of the undersigned):

Signed [month, day, year]


I

[Signature of shareholder]

[Name of shareholder - printed]

20 ..

......

;:

..

,.

12.13 Revocation of Proxy

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Subject to Article 12.14, every pro':<}' may be revoked by an insfrumenfin writing that iS
received:

.....

l:. !

(1)

at the registered office of the Company at any time up to and including .the last'
business day before the day set for the holding of the meeting or any adjourned.
meeting at which tl1e proxy is to be used; or

(2)

'

'

. ..

'

........

at the meeti.itg or any adjourned meeting, by the chair of the meeting or adjourned
meeting, before any vote in respect of which the proxy has been given has been
taken.

12.14 Revocation of Proxy Must Be Signed


An instrument referred to in Article 12.13 must be signed as follows:

(1)

if the shareholder for whom the proxy holder is appointed is an individual, the
instrument must be signed by the shareholder or his or her legal personal
representative or trustee in bankruptcy;

(2)

if the shareholder for whom the proxy holder is appointed is a corporation, the
instrument must be signed by the corporation or by a repr~sentativC! appobted for
the corporation under Article 12.5.

12.15 Chair May Determine Validity of Proxy.


The chair of any meeting of shareholders may determine whether or not a p:oxy def osited
for use at the meeting, which may not strictly comply with the requirements of this Part 12
as to form, execution, accompanying docwnentation, time of filing or otherwise, shall be
valid for use at the meeting, and any si.ich determination made in good failh shall be final,
conclusive and binding upon the meeting.
12.16 Production of Evidence of Authority to Vote
The chair of any meeting of shareholders may, but need not, inquire into the authority of
any person to vote at the meeting and may, but need not, demand fron that person
production of evidence as to the existence of the authority to vote.

PART13
DIRECTORS
13.l

First Directors; Number of Directors

The first directors are the persons designated as directors of the Company h the Notice of
Articles that applies to the Company when it is recognized under the Busir.e ;s Corr~1tations
Act. The number of directors, excluding additional directors appoin~ed under A.rticl6 '.:.4.8, is
set at:
. 21-

(I)

r;~ "~ecn. paragrapns (2) and('3), the number of directors that is equal to the number
c. ~he Cc .1pany's first directors;
r

C:

J:\

(":
1.,

(b:,.
(3)

i:. i1e C.: "tpany is;;_public company, the greater of three and the most recently set of:
..,

..-~

'

ti ~!- number

of directors set by ordh-.ary resolution (whether or not previous

.:lee of th.: resolution was given); :.i~d


. .;'
. .
..
i':

tleI number of directors set under Ar.i.icle


14.4;
.
(.

if the Co. '1pany is not a public company, tli~ inost recently set of:
(a)

t~ ~;:)

number of directors set by ordir.ary resolution (whether or not previous

r._:iti.ce of the t-esolution was given); and


(b)

13.2

the number of directors set tmder ArLicle 14.4.

Change b Number of Directors


.,

If the nu:r.ber of directors is set under Articles 13.1 ~2)(a) or 13.1(3)(a):


(1)

(2)

th : shar,,>1olders may elect or appoint the directors needed to fill any vacancies in
~:.. ~ boar' :->f directors up to that numbel';
L :1e sh: :!holders do not elect or appoint the directors needed to fill any vacancies
~d of db~ctors up to lhat number contemporaneously with the setting of
tl~"t nur.ber, then the directors, subjecl. to Article 14.8, may appoint, 01 the
s! mrehoh. ers may elect or appoint, directors to fill those vacancies.

.;.:. i.he he.

13.3

D i:recto.r:.' Acts Valid Despite Vacancy

An act or ? rocee l t:ng of the directors is not invalid merely because fewer than the number of
directors ~et or o herwise r(:quired under these Articles is in offic~.

13.4

Qualificelions of Directors

A directer is no ~ required to hold a share of the Company as qualification for his or her
office but must be qualified as required by the Business Corporations Act to become, act or
continue to act as a director.
13.5

Remune:ation of Directors

The directors are entitled to the remuneration for acting as directors, if any, as the directors
may from. time to time determine. U the directors so decide, the remuneration of the
c:Lrector.::~ if any, will be determined by the shareholders. That remuneration may be in
addition :o any .salary or other remuneration paid to any officer or employee of lhe
Company as sucii, who is also a director.
- 22-

13.6

Reimbursement of Expens~ of D~qctors


~

The Company must reimburse each director for the reasonable expenses that he or she may
incur in and about the business of the Company.
.
..
.
.
.
''
' ..
"
13.7 Special Remuneration for Director~
. ~
.

. -.

'

.t"

-~ '

If any director performs any professional. or other setvices for the Company that in the
opinion of the directors are outside the ordinary duties. of a direc,,to'r, or i.f.ipy ~~ctor ~s~...
otherwise specially occupied in or about the Company's busin~ss, .~e or s~1e may b~ paid
remuneration fixed by the directors, or, at the option of that director, fixed by ordinary
resolution, and such remuneration may be either in addition to, or in substitution for, any
other remuneration that he or she may be entitled to receive.
13.8

Gratuity, Pension or Allowance on Retirement of Director

Unless otherwise determined by ordinary resolution, the directors on behalf of the


Company may pay a gratuity or pension or allowance on retirement to any di".ector who has
held any salaried office or place of profit with the Company or to his or her spouse or
dependants and may make contnbutions lo :my fund and pay premiums for the purchase or
provision of any such gratuity, pension or allowance.

PART14
ELECTION AND REMOVAL OF DIRECTORS

14.1

Election at Annual General Meeting

At every annual general meeting and in every unanimous resolution contemplated by


Article 10.2:

(1)

the shareholders entitled to vote at the annual general meeting for the election of
directors must elect, or in the unanimous resolution appoint, a board of directors
consisting of the number of directors for the time being set under these Articles; and

(2)

all the directors cease to hold office immediately before the election or appointment
of directors under paragraph (1), but are eligible for re-election or re-u~,?ointrr~~nt

14.2

Consent to be a Director

No election, appointment or designation 0 an individual as a director is valk .!tnless:

(1)

that individ~al consents to be a di::ector in the manner provided for :.n. the Business

Corporations Act;,
(2)

that individual is elected or appojnted at a meeting at which the individual is


present and the individual does not .refuse, at the meeting, tobe a dire':'tor; or

- 23-

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.... .
v;i,th resf~ct to first 'd irectors, the

(3)

designa~on

is otherwise valid under tl1e Busi.ness

Corporati:ms Act.
14.3

Fa iltue t<..Elect or Appoint Directors


:,' '

If: .

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. '. ,

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..

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',....

t .'.~ C9m ..;my failsfOhold an i:II\Ilual gene.r.11 ~ee:ting, and all the shareholders who
CJ : " enti'..;.tl to vo'.~.. at an ~rmual gene1;.;:\ meeting fail. to pass the unanimous

"'.,

r. :oh:i.ti~ :,~..conterri.1;.~~ted

(:../..
~

by.Article 10.2, oh..or before the date py which the annual


1erah ..'eting is ,t.,~,quired to be held und1;-~ the Business Corporations A.r.t; or

t ~ .. sha:: ;..,Jlders fa~lr at the annual genera! meeting or in the unanimous resolution

c itemp r.ed by .f.tti.cle 10.2, to elect or ap1;oint a."1y director&;


t

"Ill

then each direct< r then in office continues to hold office until the earlier of:

(3)

when his or her successor is elected or appointed; and

(4)

when he or she otherwise ceases to hold ot5ce under the Business Corporati.ons Act or
these Artdes.

14A

Places of Retiring Directors Not Filled

then~ should be an P.l~ction of directors, the


places of any of ~he retiring directors are not filled by that election, those retirin& directors
who are 1tot r~lected and who are asked by the newly elected directors to continue in
of.flee wiH. if wL;;,;:1g to do so, continue in office to complete the number of directors for the
time beil:g set p ~~-uant to t;hese Articles until fuxth::r new directors are elected at a meeting
of ~~hare! ,ldets )nvened :or that purpose. If any such election or continuance of directors
d1J~'3 not ~ ?.Sttlt .i the elecUon or confutuance of ti te number of directors for the time being
sE::.~ purs'\.. ~.'.1.t lo '.'. ' $C? Artid~.s, the number of direc:to:s of the Company is deemed to be set at
~1-. ~ nUJl":, r of d; :.ctors actaci11y elected or continu 1~d in office.

If, at any meetfog of shareholders at which

1~.S

r:

.ector ;,fay FilJ Casual Vacancies

Ar::y cast:<il vaca; .;y occurring in the board of direc~ors may be filled by the directors.

14.6

Remaining Directors' Power to Act

The directors may act notwithstanding any vacancy in the board of directors, but if the
Company has fe.,..rer directors in office than the number set pursuant to these Articles as the
quorum of directors, the directors may only act for the purpose of appointing directors up
to that number or of calling a meeting of shareholders for the purpose of filling any
vacancies on the board of directors or, subject to the Business Corporations Act, for any other
purpose.

-24-

14.7

Shareholders May Fill Va.~~ncies :.:

"

'" .

. ."i ...

'

: :....

: !t

Ii ilie to~pany.-ha~ no .dire~tors or fewer ~~rectors hi otfii~ lli~ ili~~nu~be~~~et p~~ant-,t;,


these Articles as the quonim of direct?rs, ~: s~areh?lders_ may e~;.t or ap~f>,1;l1t.di:i:;.~ors .tol"
fill any ~ac~cies ~n the board.of cljrectors.. .

.~l' .
s.
~ .
:n .

14:8 Additional Directors


I"':

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. . :i_;

~f~

Notwi~tanding Articles 13.1 a~d 13.2, betw7en annual_ge~er.~l: ~ee~9s1,~r un1~~0~~'< .


resolutions contemplated by Article 10.2, the directors ~y appomt.one or more add1tion.cil' :
directors, but the number of additional directors appointed undel' this Artj.cfo 14.8 must not
at any time exceed:

(1)

one-third of the number of fust directors, if, at the time of the appointments, one or
more of the first directors have not yet completed their first term of office; or

(2)

in any other case, one-third of the number of the current directors who were elected
or appointed as directors other than under this Article 14.8.

Any director so appointed ceases to hold office immediately before the next election or
appointment of directors under Article 14.1(1), but is eligible for re-election or reappointrnent.
14.9

Ceasing to be a Director

A director ceases to be a director when:


(1)

the term of office of the director expires;

(2)

the director dies;

(3)

the director resigns as a director by notice in writing provided to the Compc>11y or a


lawyer for the Company; or

(4)

the director is removed from office pursuant to Articles 14.10 or14.11.

14.10 Removal of Director by Sharehold.7rs

The Company may remove any director before the expiration of his or her t fa"In of office by
special resolution. In that event, the shareholders may elect, or appoir.t by ordinary
resolution, a dixector to fill t...'le resulting vacancy. If the shareholders do not elect or appoint
a director to fill the resulting vacancy c:ontemporaneously with the removal, then the
directors may appoint or the shareholders may elect, or appoint by ordinar." resoktion, a
director to fill that vacancy.

- 25-

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'....
.

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14..1.1

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Hi~.mova::iqf Diredor:by Diredors


~

'-

'.

'

'

The dir~~~cors m;~y remove 'any director before the expiration of his or her term of office if
the director is cc~wict:ed of an indictable offence, ~1r if the director ceases to be qualified to
act as a W..Cector of a company and does not promp-dy resign, and the directors may appoint
a director to fill t1.1e resulting vacancy.

PARTIS
\,

15.1

Appoint:

t~nt

.. .

ALTERNATE DIKliCTORS

of Alt-emate Di.rector

1 .

Any director (ru. 11appointor11) may by notice in writing received by the Company appoint:
ar.y pers-n (an ', ppointef!11} who is qualified to act as a director to be his or her alternate to
ac ~ in hi> er her , .~ace at ms.:t:ings of the directors 0.r committees of the directors at which the
a;,pointr .~ is nc present unless (in the case of an appointee who is not a director) the
dirc.ctorc .Jave 1 ~asonably disapproved the appci.1bnent of such person as an alternate
dhector ;:ld ha\ _. given notice to that effect to his or her appointor within a reasonable time
afl.8r the .::>tice c:- . appointment: is received by the Cumpany.

E.,,ery alt<!rnate c:~irector so appointed is ent:i.lled to notice.of meetings of the dixectors and of
corrun.ittt"X!s of fr_:? directol's of which his or her appointer is a member and to attend and
vote as a directo.1 at any St:ch meetings at which hi~ or her appoint:or is not present
15.3

Ai:ernatc for More Than One Director At!ending Meetings

A persor may b::~ appointed as an alternate diru:tor by more than one director, and an
alternate directo :

(1)

will be cr.:.unted in determining the quonu-.:.1 for a meeting of directors once for each
of his or ! 1er appointors and, in the case of r.n appointee who is also a director, once
more in t..at capacity;

(2)

ha:; a ser .rate vote at a meeting of directors for each of his or her appointow and, ~n
the case .<. : an appointee who is also a din~cior, an additional vote in that capacity;

(3)

wlil be ccanted in determining the quorui."11 for a meeting of a cottunittee of di.rectors


o:ice for. c<ich of his or her appointors who is a member of that conunittee' and, in the
ca:;e of alt appointee who is .also a member 0f that committee as a director, once more
ir.. that capacity;

(4.)

ha~ a seF ::u ate vote at a meeting of a committee of directors for each of his or her
appointers who is a member of that committee and, in the case of an appointee who
i<J ruso a member of that committee as a director, an additiorial vote in that capacity.

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15.4

Consent Resolu tions

'

ro~.

...

.I.,.':

llJ
rff

,.

Every alt~mate director, if authorized by fl.17 notice appointing h~ or her, m~.Y si~\ri place
of his or her appointor any resolutions to be consented .toin writing."
.
15.5

Alternate Director Not an Agen t

Every alternate director is deemed n ot to be:the agent of his or her appointor."

15.6

Revocation of Appointment of Alternate Director

An appointor may at any time, by notice in writing received by the Company, revoke the
appointment of an alternate director ap pointed by him or her.
15.7

Ceasing to be an Alternate Director

The appointment of an alternate director ceases when:


(1)

his or her appointor ceases to be a director and is not promptly re-elected or reappointed;

(2)

the alternate director dies;

(3)

the alternate director resigns as an altern ate director by notice in wrH~ .1g provjded to
the Company or a lawyer for the Company;

(4)

the alternate director ceases to be qualified to act as a director; or

(5)

his or her appointer revokes the appointment of the alternate.director.

15.8

Remu neration and Expenses of Alte.rnate Director

The Company may reimburse an alternate director for the reasonable expenses that would
be properly. reimbursed if he or she were a director, and the alternate director is entitled to
receive from the Company such proportion, if any, of the remuneration otherwise payable
to the appointor as the appointor may from time to time direct.

PART16
POWERS AND DUTIES OF DIRECTORS
16.1

Powers of Mi\Ilagemen t

The dir&tors must, subject to the Business Corporations Act and thase Artir:es, ma.~1age or
supervise the management of the busin~:;s and affairs of the Company and. k:ve the
authority to exercise all such powers of the Company as are not, by the Busir...?ss Cor;::;ratioru
Act or by these Articles, required to be exercised by the shareholder~ of the C mpar.y..

-27-

'"

11; 2
..

.(..poin.~~!~nt of A~Qmey of Company


tI

Ci! dir~~.-.>rs 1i. '::: from tii:1e to rune, by po~er of .x=torney or other instrument, tuLder seal ii
s ... :reqt1~~:d, by;C''.:w, ap1:~int i:u'Y .P~rs~1~ .to _be ..~1.e a~omey of the Company for such
r,p.post':! . and:. in such _powers, .authorities and 1J.1SCretions (not exceeding those vested in
q_: exerd.:.ble b~ . he d.ireciors under these Article."_ md ex_cepting the power to fill vacancies
n'..) te t>r: :. d of :.,,;:eclors, t;, remoye .a director, to C:~ge the membershj.p of, or fill vacancies
~~',-my <.:' . ~rrmitt, ~ of the ,Alrectore, ~r. appoint. or r ~~nove '?fficers appointed by the direct-ors
al;\~ to d~;:lare .< _'fidends) and for such period, ru.;.d wit;.'l ~uch remuneration and subject to
such con,ditions r.;s the directors may think fit. Any f;uch power of attorney may contain such
provisions for tl .e protect.on or convenien ce of pr:rsons dealing with such attorney a.3 the
duectors ihink f. !;. Any su,eh attorney may be authorized by the directors to sub-delegate all
or any of the powers, authorities and discretions for the time being vested in him or her.

PART17
INTERESTS OF DIRECTORS AND OFFICERS
17.1

Cbligatil'n to Account for Profits

A diredcr or scl.ior officer who holds a disclosable interest (as that term is used in the
B11.siness Corpor~ i.ons Act) irt a conttact or transaction into which the Company has entered
or pr.:>pc:!,es to t:' :\ter is liable to account to the Company for any profit that a!=crues to the
cfo ector : : senic officer ur;der or asa 1:esult of th:! contract or transaction only if and to the
f',, ent p :,Jide:~ . \ the Bus~ness Corporations Ad.
,

1:.z

{ stric~i

.1S 01\

V\.';ing by 'Reason of lnieI ~3t

P. di:t'ecL: whc holds a <lisclosable int~rest in tt contrJ.ct or transaction into which the
C.,~npru:1 / has~!

::c red or F:oposes to enter is not e.~titled to vote on any directors' resolution
tr.. appro :: that ontract o:: transc.<.:tion, unless all the directors have a disclosable int-erest in
th:.t conn-act or .r ansactio:;., , in which case any o: all of those directors may vote on such
resolutic;,.

17 .3

hl~ereste.

l Directo1 Counted in Quorum

A director who holds a disclosable interest in a contract or transaction into which the
Company has entered or proposes to enter and who is present at the meeting of directors at
which the contract or transaction is considered for approval may be counted in the quorum
at the meeting whether or not the director votes on any or all of the resolutions considered
at the meeting.
17.4

D;sclos1:1re of Conflict of Interest or Property

A director or Sel.~iGr officer who holds any office or possesses any properly, right or interest
that couid resuL directly or indireclly, in the creation of a duty or interest that materially
ccnflicts -.rith fo;.t individual's duty or interest as a director or senior officer, must disclose
t1'2 nature and t::. tent of the conflict as required by the Business Corp~rations Act.
.1

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17.5

Director Holding Other Office in the Company

A director may hold any office or place of profit with the Company, other th_an the.office of
auditor of the Company, in addition to his or her office of director tor the period and on the
terms (as to remuneration or otherwise) that the directors may determine.

17.6

''

No Disqualification

.1':

No director or intended director is disqualified by his or .her-.office ftom con.tMcting ~th the:; .
Company either with regard to the holdingof any office or .place of profit the director holds .
with the Company or as vendor, purchaser or otherwise, and no contract ~r transaction
entered into by or on behalf of the Company in which a director is in any way interested is
liable to be voided for that reason.

17.7

Professional Services by Di!'ector or Officer

Subject to the Business Corporations Act, a director or officer, or any person in w hich ~
director or officer has an interest, may act in a professional cap:icity for the Company,
except as auditor of the Company, and the director or officer or such person is entitled to
remuneration for professional services as if that director or officer were not a director er
officer.

17.8

Director or Officer in Other Corporations

A director or officer may be or become a director, officer or employee of, or otherwise


intereste<l in, any person in which the Company may be interested as a shareholder or
otherwise, and, subject to the Business Corporations Ad, the director or officer is not
accountable to the Company for any remi:neration or other benefits received by him or her
as director, officer or employee of, or from his or her interest in, such other person.

PART18
PROCEEDINGS OF DffiECTORS

18.1

Meetings of Directors

The directors may meet together for the conduct of business, adjoum and otr. !rwise legulat2
their meetings as they think fit, and meetings of the directors helc! at regul;::: interV'ils may
be held at the place, alt the time anc! on the notice, if any, as the directors m y from time to
time determine.

18.2

Voting at Meetings

Questions arising at any meeting of directors are to be decided by a majority of vote.:; and, in
the case of an equality of votes, the chair of the meeting does not have a second er ~asting
vote.

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18.3

Chair of .'.\.1eetings

The follcwing ir.~uv;dual is entitled to preside as ch.air at a meeting of directors:


(1)

tht! chair ~1i the board, if any;

(2)

i::- the a!:- :ence of C1c chair of the board, the pl'esident, if any, if the president is a
<! .'ector.; .r

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a .' otht. director chosen by the dir~ctors if.:


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18.4

i ..her

"r;

the -:.hair of 'the board nor tl~e pre.sident, if a director, is present at the
after thefime set for holding the meeting;

1.- . :~ting w~'.fon 15 :minutes


1-:.;

.-

(i ~;

r: '.!her the 'iliair of the board nor the president, if a director, is v.rilling to
d uir the m1~etirlg; or
..:

(c)

th:! chair of the board and the president, if a director, have advised the
sc:,-:retary, if any, or any other director, that they will not be present at the
r:teeting.

~foeting!1

by Telephone or Other CommW\ications Medium

A director may y,articipatc in a meeting of the direcl>:>rs or of any committee of the directors:

(1)

in person;

(2)

by telepr.~me; or

(3)

wiih the ;onsent of all directors who wish to participate in the meeting, by other
cc,runur..'. ::ations medium;

if ,:ll dfr ..:tors ~ .rticipati.;g in the meeting, whe:ber in person, or by telephone or other
C:':': ~w' ation : medium, are able to communi.::ate with each other. A director who
p..Ucipt<.s in ;- meeting in a manner contempbtcd by this Article 18.4 is deemed for all
p:irpose.: if the 1.siness Corporations Ad and thes0 Articles to be present at the meeting and
to have c.:;reeJ t. participat~ in that manner.
16.5

Cal.ling o:: Meetings

A director may, and the secretary or an assistant secreta..7 of the Company, if any, on the
request of a director must, call a meeting of the directors at any time.
18.6

N otice of Meetings

Other than for m~etings held at regular intervals as determined by the directors pursuant to
Article 18.1 or as provided in Article 18.7, reasonable notice of each meeting of the <lirectors,

-30-

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;
.
.
'
specifying the place, day arid time of that m\?eting fil"l\St ~ ~ven~ach of.~J dir~rs anci:
the alternate directors by any method-set o~t in Article 24.1 or oral\y:or by tej_~.p.hon~.
~ -:

18.7

!(

When Notice Not Required

It is not necessary to give notice of


director if:

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1.~

ame~ting of the diredors to.a directo?6r an ;i\~rnat~V

~r:'

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r"1

(1)

the meeting is to be held immediately following a meeting'of sharehtilders-a~ which ,


that di.rector was elected or appointed, or is the meeting of the dii:~tors at which
that director is appointed; or

(2)

the director or alternate director, as the case may be, has waived notice of the
meeting.

18.8

Meeting Valid Despite Failure .to Give Notice

The accidental omission to give notice of any meeting of directors to, or the non-receipt of
any notice by, any director or alternate director, does not invalidate any proceedings at that
meeting.
18.9

Waiver of Notice of Meetings

Any director or alternate director may send to the Company a document signed by him or
her waiving notice of any past, present or future meeting or meetings of the directors and
may at any time withdraw that waiver with respect to meetings held after that witherawal.
After sending a waiver with respect to all future meetings u.nd until d1at waiver is
withdrawn, no notice of any meeting of the directors need be given to tk1.t dir~ctor or,
unless the director otherwise requires by notice in writing to the Compan;!, to hi,; or her
alternate director, and all meetings of the directors so held are deemed not to be improperly
called or constituted by reason of notice nnt having been given to such direc~or or alternate
di.rector.
Attendance of a director or alternate director at a meeting of the directors is a wuiver of
notice of the meeting, unless that director or alternate director att:Gnds the w.eeting for the
express purpose of objecting to the transaction 'of any business on the grounds that the
meeting is not lawfully called.

18.10 Quorum

The quorum necessary for the transaction of the business of the directors m.3.Y be set by the
directors and, if not so set, is deemed to be set at two directors or, if the number of directors
is set at one, is deemed to be set at one director, and that director may constitute a meeting.

-31-

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H;,11 ': 1<.lldity:. )' Acts W~~ere Appointment Dei~.!dive


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Sc.bject .t o.Jhe Bi ;i!ness Corporations Act, an act of. ;~ director or.officer is not invalid merely
b.::~ause an ir:-:,e.gularity .in the election or appointment or a defect in the qualification of
that clire~tor or o.:.ficer.

Jf

18:12 Co,nsent ).~esolution.s in Writfog

A lesoluifon of 1:1e directcrs or of any committee'::if the .directors may be passed without a
mQeting:

(1)

in all cas::?s, jf each ,of the directors entitleci",to vote on the resolution consents to it in
'
writing; c.c
''

(2)

i~i the Cii~~~- of a resolution to approve a ~Otlltact Or transaction in respect of which a


dil ector 1.<\s disclos?.d that he or she has or may have a disclosable irlterest, if each of
tl~ othe1. 1irectors who have not made su.~h a disclosme consents in writing to the
r1 :_;olutio;;. .

'

A conser:t in Wl'l in.g und.z,; this Article 18.12 may be by any written instrument, fax, e-mail
any o'~,'er m<::'... \od of tri.i<:ismitting legibly recorded messages in which the consent of the
d1 -.2ctor ;:~ evidf.:: ~ed, whe~her or not the signaturn of the director is included irl the record.
A 1~onse; !: irl WJ. ::ing may .be irl two or more coi.:1 tterparts which together are deemed to
cor.::;tituf~ one ~<: 1sent .in writing. A resolution of ',:he directors or of any committee of the
dir~ctors
is effective on fue date stated in the
. ...'.~asse<l/n accord;mce with th.is Article 18.12
.
cc.msent in. writfr:.g or on the latest date stated er, any counterpart and is deemed to be a
proceedi...1g at a meeting of the directors or of the committee of the dllectors and to be as
valid and effecti,,e as if it had been passed at a meeting of the directors or of the committee
of the directors that satisfies all the requirements of the Business Corporations Act and all the
requirements of t-~1ese Artides relating to meeting-J of the directors or of a committee of the
diri:ctors.

01.

'

'

PART19
EXECUTIVE AND OTHER COMMITTEES

19.1

Appoint :,ent and Powers of Executive Committee

The directors may, by resolution, appoint an executive committee consisting of the director
or direct<,;!s that"they consider appropriate, and du.ring the intervals between meetings of
th: boarciof dircdors all of the directors' powers are delegated to the executive committee,
except:

(1)

th~

power to fill vacancies in the board of directors;

(2;,.

tli (:

powN1 to remove a directo1;

(3)

the powe;'- to change the membership of, or. fill vacancies in, any committee of the
directors; a.nd

. 32-

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(4)

le<.
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such other p~wers, if any, as may' be set out iri the' res~lution or: any subsequent'
directors' resolution.

;.

19.2

Appointment and Powers of Other Committees

'

'

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The directors may, by n~solutio~: .

.....

..
appoint one or ~ore conucittees (other than the ~xeeutiv~ commi~e) consisting' of
'

(1)

the director or directors that they co,nsider appropriate;


(2)

'l

delegate to a committee appointed 'u uder paragraph (1) any of the ditectors'' powers,
except
{a)

the power to fill vacancies in the board of directors;

(b)

the power to remove a director;

(c)

the power to change the membership of, or fill vacancies in, ar:y com:nittee of
the directors; and

(d)

the power to appoint or remove officers appointed by the dire~tors; an:l

(3)

make any delegation referred to in paragraph (2) subject to the cond: jons
the resolution or any subsequent directors' resolution.

19.3

Obligations of Committees

s~.. out

in

Any conunittee appointed under Articles 19.1 or 19.2, rn the exercise of the powers
delegated to it, must:

(1)

conform to any rules that may from time to time be imposed on it by the directors;
and

(2)

report every act or thing done in exercise of those powers at such time!; as the
directors may require.

19.4

Powers of Board

The directors may, at any time, with respect to a committee appointed under Articles 19.1 or
19.2:
(1)

revoke or alter the authority given lo the committee, or override a de ':ieion rc~de by
the committee, except as to acts done before such r~vocation, alter<:.:don or
overriding;

(2)

terminate the appointment of, or change the membership of, the comr.:.Lttee; r;J

(3)

fill vacancies in the committee.

..

-33-

19.5

C ;mr.iit~

:?\ .

:-= Meetirz,&

.\ '

5 _, *ct : Art:: : 19.3(J) and u.."'lless the direct.)XS otherwis~ provide in the resolution
~: ,,oinb . '~ the . .mmittee or in any subsequent :esolution, with respect to a committee
a:,;.ointc- und1.; ..:\rticles UH or 19.2:
' .
.
( ~!,,:

com.: :,tee may~meet and adjourn as it L'1.inks proper;

l . com _..;tteli? ma:r:.elect a chair of its n ..::etingo but, if no chair of a meeting is


ei.:-cted, c if at a m2eting the chair of the ;. :.'_eeting is not present with.in 15 minutes
a:tcr the -~Jne set fcr holding the meeting, tl;,e directors present who are members of
th~ comn:: ittee may c~oose one of their nun~ber t~ chair the meeting;

(3)

a r.i.ajoriL} of the members of the committ'~ constitutes a quorum of the committee;


and

(4)

question:> arising at any meeting of the committee are determined by a majority of


votes of the members present, and in the Cse of an equality of votes, the chair of the
m eeting l'ioes not have a second or casting vote.

PAR'f 20
OFFICERS
2G.1

X: ~ ':!dor::-May Ap:p:>int Officer:;

diri:-: ors :; -.y, from time to time, appoint such officers, if any, as the directors
df.:1.ermir : and t} ~ directorn may, at any time, terir.;;tate any such appointment.

T.'-..~

2(:.:-!
'fr~

P. 1ctio.1.1 , Duties ;.nd Powerc; of Officers


dil'e

)TS

m<. , for each officer:

(1)

d ~~:ermin ,

(2)

d<~l~gate ; .:>, the officer any of the powers e-..<ercisable by the directors on such terms
and concti ;ions and with such restrictions ~ the directors think fit; and

(3)

revoke, withdraw, alter or vary all or any of the functions, duties and powers of the
officer.

20.3

QualificaHons

the functions and duties of the oiiicer;

No officer may be appointed unless that officer is qualified in accordance with the Business
C.Orporati.ons Act. One person may hold more than one position as an officer of the Company.
Any person aPt-1ointed as the chair of the board or as a managing director must be a
director. -~Y oth~r officer need not be a director.

-34-

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.,

20.4

Remuneration and Tenns of Appo.i ntment

,.

-=!

.t .

All appointments of officers are to be made on the terms and conditio~s and at the
remuneration (whether by way of salary, fee, commission, participation in profits or
otherwise) that the directors think fit and a re subject to . termination at the pleasure of the
directors, and an officer may in addition to 's ch remuneration be entitled to receive; after he
or she ceases to !told such office or leaves .the.employment of the Company, a pension or
gratuity.

PART21
INDEMNIFICATION
21.1

"

Definitions

Jn this Article 21:

(1)

eligible penalty11 means a judgment, p enalty or fine awarded or iinJmsed in, or an


amount paid in settlement of, an eli&ible proceeding;

(2)

11

11

eligible proceeding" means a legal proceeding or investigative action, whether


current, tlueatened, pending or completed, in which a director, former director or
alternate director of the Company (an "eligible party11) or any of the heirs and legal
personal representatives of t.l-ie eligible party, by reason of the eligible party being or
having been a director or alternate 1i.i.rector of the Company:
(a)

is or may be joined as a party; or

(b)

is or may be liable for or ;n respect of a judgment, penalty or fine in, or


expenses related to, the proceeding;

(3)

"expenses" h as the meaning set out in the Business Corporations Act.

21.2

Mandatory Indeumification of Directors

Subject to the Business Corporations Act, the Company must indemnify a cirector, former
director or alternate director of the Company and his or her heirs and legal p.::rsonal
representatives against all eligible penalties to which such person is or Jrut)' be li<'.~:a, anc
the Company must, after the final dispos~tion of an eligible proc:?eding, F:' the c.Y.penses
actually and reasonably incurred by such person in respect of that proceedi.": . Each .-;!irecto:
and alternate director is deemed to have r.::.ntracted with the Company on ~ 1~ tenr.: of th<"'
indemnity contained in this Article 21.2.

21.3

Permitted Indemnification

Subject to any restrictions in the Business Corporations Act, the Company may il'l.demnify any
person.

-35-

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21.4

Non~Coi ,pliance ""rith Business

Corporati:.'ns Act

The failure of a director, alternate director or officer of the Company to comply with the
Business Corpomions Act or these Articles or, if ai;plicabl~, any former Companies Act or
former Articles; . ioes not invalidate any indemnity'to which he or she is entitled under this
Part 21.
2:l..5

C<;mpar:. .. May Purchase Insurance

T: ,::. Cot . .-any ;. ~Y purcb:.se and ii.1.aintain instmn::.::e for the benefit of any person (or his or
b " hein .r legr.1 p~rsonal representatives) who:
I;

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w a. . director_. c.tltematl:? director, offic '?l', employee or aeent of the Company;

!.- ur wa::~ l directo1'., alternate director, officer, employee or agent of a corporation at


a ;:me w. en the co!poraticn is or was an aJiiliate of the Company;

,.,

,.

..

..

-iU-est of -the Company, is or ,,,as a director, alternate cliiector, officer,


en:ploye~' or agent of a corporation or of ~ partnership, trust, joint venture or other
m'lincorp0rated entity;

(" ) '

a~

(4)

at the r~~uest of the Company, holds or held a position equivalent to that of a


director, .:iltemate director oz officer of a partnership, trust, joint venture or other
un..incorp.)rated entity;

the

1~

a3ainst auy Iiabllity incurred by him or her us such di.J:ector, alternate director, officer,
employee or ag(::nt or person who holds or held such equivalent position.

PART 2~~
DIVIDENDS

22,:1_

P ..:meni.

;r Divide11ds Subject to Special Jaghts

T:1:: pro\ ,ions <. this Part ?2 are subject to the rig,.; ts, if any, of shareholders holding shares
w ;'h spc: :11 rigl. : as to di'ridends.
22..2

I: darat: : n of Di-vldends

Subject !-o the Bt &i11.ess Coi'porations /let, the direc!:ors may from time to time declare and
aui:horiz~ paymei\t of such dividends as they may consider appropriate.
22.3

No Notice Require~

The directors need not give notice to any shareholder of any declaration under Article 22.2.

- 36-

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22.4

Record Date

,,

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The directors may set a date as lhe record date for the purpose of determining shareholders .
entitled to receive payment of a dividend. The record date must not prect!'Je the ltlate on
which the dividend is to be pa.i d by -more than two months. If no. recordiirlate iS.'{ret, the
record date is 5 p.m. on the date on :which the directora pass the:-resoluti,o~l decl.'~g the:
dividend.

22.5 Manner -o~ Paying Dividend

,, .:

"
A resolution declaring a dividend may direct payment of the dividend wholly or partly in
money or by the distribution of specific assets or of fully paid shares or of bonds, debentures
or other securities of the Company or any other corporation, or in any one or more of those
ways.
22.6

Settlement of Difficulties

U any difficulty arises in regard to a distribution under Article 22.5, the directors ~y settle
the difficulty as they deem advisable, and, in particular, may:
(1)

set the value for distribution of specific assets;

(2)

determine that money in substitution for all or any part of the specific assets to
which any shareholders are entitled may be paid to any shareholders on the basis of
the value so fixed in order to adjust the rights of all parties; and

(3)

vest any such specific assets in trustees for the persons entitled to the d.i.vidend.

22.7

When Dividend Payable

Any dividend may be made payable bn such date as is fixed by the directors.

22.8

Dividends to be Paid in Accordance with Number of Shares

All dividends on shares of any class or seriP.s of shares must be declared and _paid ac~ording
to the number of such shares held.
22.9

Receipt by Joint Shareholde-rs

I1 several persons are joint shareholders of any share, any one of them may give an eJ'fective
receipt for a."1y dividend, bonu s or other money payable in respect of the sham.
22.10 Dividend Bears No Interest
No dividend bears interest against the Company.

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If a divic..t:nd to .\lhlch a shareholder is entitled indudes a fraction of the smallest monetary
unit of the curre.1 .:::y of the dividend, that fraction r~\ay be disregarded in making payment of
,'\"(

the dividend arn:~ that pay~_nent represents full pay~r.ent of the dividend.

22.12 Payment _of Divide~ds

Any div~tjend o~ other dist;dbuti.on payable in m1y.1ey in respect of shar~s may be paid by
chzque, !l'.ade P;'-yable to .the order of the persori to whom it is ::;ent, and mailed to the
registered addre.;3 of the shareholder, or in the 'E;e of joint shareholders, to the registered
address e.: the j~: .a t shareholder who is first namt:!d on the central securities register, or to
the pers0n and .~ the address the shareholder or joint shareholders may direct in tAIIiting.
Th<-! mail::<lg of:: tch cheqt:.e will, to the extent of fue sum represented by the cheque (plus
the amo.:.nt of .he tax required by law to be <li:::ducted), discharge all liability for the
dividend unless,;uch chel1ue is n ot paid on presentation or the amount of tax so deducted is
nc:: paid ~;i the c::~propriate taxing authority.
22..:1.3

({ ; itali.2 ;lion of Re:tained Earnings or Smplus

;'!i.twitl: .:mclli-.; anything contained in these A.rt.des, the directors may from time to time
Ci: ~1ltalli: . any r, itlned earr.ings o~ surplus of th~ Company and may from time to time
i.smte, as rlly :p: d, shares or any bon.ds, debentures or other securities of the Company as a
di.ridenu 1epres:..1ti.ng the ro;tained earnings or surplus so capitalized or any part thereof.
PARTZ:~

ACCOUNTING RECORDS AND AUDITOR

23.1

Recording of Financial Affairs

The dire-:-::ors m !.lst cause adequate accounting rr::cords to be kept to record properly the
financial affairs ,. nd condition of the Company and to comply with the Business Corporations
Act.
23.2

fospectil: ,, of Accounting Records

Unless the d.iredors dete.rmine otherwise, or unless otherwise determined by ordinary


resolutioP, no s.hareholde:r of the Company is entitled to inspect or obtain a copy of any
accountir1g recotds of the Company.
.
23;>

R~mune.ntion

of Auditor

The' dire.:.~ors n-~:r set the r~muneration of tl:te auditor of the Company.
-

.1...

:.

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PART24
NOTICES

...

24.1

Method of Giving Notice

Unless the Business Corporations Ad or these Articles provide otherwise, a notice, statement,
report or other record required or permitted by the Business Corporation~ Act .o r these
Articles to be sent by or to a person may ~ ~ent by any one of the following methodS:
(1)

(2)

mail addressed to the person at the applicable address for that person as follows:
(a)

for a record mailed to a shareholder, the shareholder's registered address;

(b)

for a record mailed to a director or officer, the prescribed address for mailing
shown for the director or officer in the records kept by the Company or the
mailing address provided by the recipient for the sending of that record or
records of that class;

(c)

in any other case, the mailing address of the intended recipient;

delivery at the applicable address for that person as follows,


person:

addresse~t

to the

(a)

for a record delivered to a shareholder, the shareholder's regis ~ered address;

(b)

for a record delivered to a director or officer, the prescribed address for


delivery shown for the director or officer in the records kept by the Company
or the delivery address provided by the recipient for the aencling of that
record or records of that class;

(c)

in any other case, the delivery address of the intended recipient;

(3)

unless the intended recipient is the auditor of the Company; sending the record by
fax to the fax number provided by the intended recipient for the sending of that
record or records of that class;

(4)

unless the intended recipient is the auditor of the Company, sending the record byemail to the e-mail address provided by the intended recipient for the sending of that
record or records of that class;

(5)

physical delivery to the inter.ded re:dpient

24.2

Deemed Receipt

A notice, statement, report or other record that is:


(1)

mailed to a person by ordinary :nail to the applicable address f ) t that persor:


referred to in Article 24:1 is deen:ed. to be received by the person t who;:r. it was
~ 39-

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rr;:iled o;- the day, Saturdays, Sundays and holidays excepteq, follmving the date of
JJ> L: iling;
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fr ~ed to person to the fax number provided by that person referred to in Article
L : is: do .ned to 't>c received by the perso~i. to whom it was faxed on the day it was
f, ~d; ar
.,., .

.....

(-.

e taileC: ,0 a peis :1n to the e-mail ad<.lres ~ provided by that person referred to in
/. -icle :::. 1: .is dee1~ ~d to be received by th~ peroon to whom it was e-mailed on the
u. 1 it w ; e-mailec':.
I/

211..3

-.

C.:~tificat !

...

of Sending

A certificate sig; ~d by the ~retary, if any, or oth& officer of the Company or of any other
corporation actir.J in that capacity on behalf of the Company stating that a notice, statement,
report or other :ri.:~cord was sent in accordance with Article 24.1 is conclusive evidence of that
fact.

24.4

Notice toJoint Shareholders

A notice, statement, report or other record may be provided by the: Company to the joint

sh:u-ehol:.lt:irs of '" share by providing such record to the joint shareholder first named in the
ce11tral S(~c: uritie~ :egister in respect of the share.
. ,.

21.3

r.'(l Uce i<fi..egal Penonal R~prescntatives :md Trustees

A iotic~. ~.tatE>.rr. ..1t, report or other record may be provided by the: Company to the persons
e~. .itled a sh.: :. in consequence of the death, bc::nl<ruptcy or incapacity of a shareholder
~': :

(1;

n Uing 1

.~ record, ~ cl.dressed

to them:

(<'.:

b; :tame, by the title of the legal p~.::sonal representative of the deceased or


in.~apacitated shareholder, by the ti.!a of trustee of the bankrupt shareholder
or by any similar description; and

(b)

at the address, ii any, supplied to the Company for that purpose by the
persons claiming to be so entitled; or

(2)

if an address referred to in paragraph (l)(b) has not been supplied to the Company,
by giving the notice in a manner in which it might have been given if the death,
bankruptcy or incapacity had not occurred.

24.6

Undeliv~::cd

Notices

If, on two conse-~utive occasions, a notice, statement, report or other record is sent to a
sl'2.reholder p1!r1,1.la1\t to Article 24.1 and on each of those occasions any such record is
reiumed t>1~ause the shar~.holder cannot be located, the Company shall not be required to
- 40 -

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send any ftirther recordsto the shareholder until the shareholder. ~orms fu~'Company in
writing of. his or her new address.

25.1

PAilT 25.

,..

SEAL

.r

Who May Attest S~al

:.

Except as prqvided in Articles 25.~. anc;l ~.3, the' Company'~ ~~~1, if a;n~~~':znusq_~ot be
impressed on any record except when thatm:-pression is attested by the signMures of:' 1
(1)

any two directors;

(2)

any officer, together with any director;

(3)

if the Company only has one director, that director; or

(4)

any one or more directors or officers or persons as may be determined by the


directors.

25.2

Sealing Copies

For the purpose of certifying under seal a certificate of incumbency of the directors or
officers pf the Company or a true copy of any resolution or other docwnent, despite Artide
25.1, the impression of the seal may be attested by the signature of any director or officer or
the signature of any other person as may be determined by the directors.
25.3

Mechanical Reproduction of Seal

The directors may authorize the seal to be impressed by third parties on share certificates or
bonds, debentures or other securities of the Company as they may determi..1e appropriate
from time to time. To enable the seal to bE; impressed on any share certificates or ~nds,
debentures or other securities of the Company, whether in definitive or interim form, on
which facsimiles of any of the signatures of the directors or officers of the Ccrnpany are, in
accordance with the Business Corporations Ad or these Articles, printed or ot~~wisc
mechanically reproduced, there may be delivered to the person empfoyc I to er.3fave,
lithograph or print such definitive or interim share certificates or bo:lds, del>e." t:urcs ;:r other
securities one or more unmounted dies r~producing the seal and such ;.'<'!rsoru; :is are
authorized under Article 25.1 to attest the Company's seal may h1 writing r.~~t.11orize sud\
person to cause the seal to be impressed n;:i such definitive or interim share certificates or
bonds, debentures or other securities by the use of such dies. Share certific:\tes or bonds,
debentures or other securities to which the seal has been so impressed are for all purposes
deemed to be under and to bear the seal impressed on them

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PART 26
PROHIBITIONS
26.1

Definitio~-.s

In this Part 26:

(1)

"~?.curity' '

(2) ..

11

has the meaning assigned in the 2.ccuritks Act;

t:.ulsfer i :stricted s'!curily 11 means


.1 r

26.2

(a

a :- are of the Company;

(l

a : : urity of t!1e Company convertio;;.; into ~hares of the Company;

(c;." .

a.-.i_, .o ther seturity of the Company.vr.rhich must be subject to restrictions on


tro. isfer in order for the Company to satisfy the requirement for restrictions
01 -. transfer under the "private issuer" exemption of Canadian securities
le;~: slation or under any other exeu:ption from prospectus or registration
re~:.uirements of Canadian securities legislation similar in scope and purpose
to 'l1e "private issuer" exemption.

Applicati0n

Article 26.3 does riot apply to the Company if and for so long as ii: is a public company or a
pre-existing repor ting company which has the Sratutory Reporting Company Provisions as
part of ther.e Articles or to which the Statutory Repoiting Company Provisions apply.
26.3

Consent Required for Transfec of Shares or Transfer Restricted Securities

No share :::>:: othe: transfer restricted security may i;e sold, transferred or otherwise disposed
of withou ~ the cc.:.:sent of the diiectori; and the din.i.:tors are not required to give any reason
for refusi1~g to co. "sent to any such sale, transfer or other disposition.

PART27
CLASS A l'REFERRE-Z> SHARES
authoriz~d to issue an unlimited number of Class A Preferred Shares
without p<:.( valU. (the "Cla5s A Preferred Shares").

The Con!'any is

CL.ASS A PREFEJ.::RED SHARES


The Oass A Prefe:rred Shares shall carry the following special rights or restrictions:

-42-

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27.1

Definitions

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;'.jl"

In these Oass A Preferred Share conditions, the. follo.wing :words and phni.fr.s sha!lJiave the
follow.ing meanings:

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.1

(1)

"Act'' means the Business Cqrpo~~ti~ns Act (British Col~bia}.

(2)

"Class A Redemption Arr_iount" of each ClassA ~referred Share *1eans,. ~bject to


the provisions of Clause (5) of thlsArticle 27.1, the quotient obtained by dividing:

I'

(a)

'

1
"'
i.

the fair market value at the Issue Date of the Transferred Assets, which
amount shall be determined by the Company, minus $1,500,000,000

by

(b)

the number of Oass A Preferred Shares issued by the Company on the Issue
Date in consideration for the transfer of the Transferred Assets.

(3)

"Class A Redemption Price" of each Class A Preferred Share at any particular time
means an amount equal to the sum of the Class A Redemption Amount and all
dividends declared on such share prior to such time which remah'! unpaid. at such
time.

(4)

"Dividend Payment Date" means the last day of the Company's fise<'l year.

(5)

"Designated Amount'' means the amount of $1.00, being the Comp::my's ~st
estimate on the Issue Date of the amount of the Class A Redenption Amom1t.
Unless and until the adjustments provided for hereafter ure requir~d, the Company
shall be entitled to proceed on the basis that the Class A Redemp!fon Amount is an
amount equal to the Designated Amount and to make all pay!.1:mts, whether in
respect of dividends or in respect of the Oass A Redemption Pric(' or otherwise on
that basis.
(a)

If at any time within 90 days after the Issue Date, the Company determines
that the fair market value at the Issue Date of the Transferred Assets is an
amount (the "Final Value") other than the amount determined by the
Company on the Issue Date to be the fair market value of the Transferred
Assets at the Issue Date, the Company shall adjust any and all payments
before or after such time to reflect the actual amount of the Class A
Redemption Amount as determined on the basis of the Fi."lal Value. Any
such adjustment shall be made effective as of the Issue Date, and all
necessary adjustments sha1J be made to any and all payments of dividends or
any other amounts such that, after such adjustments, the Company and the
holders of Class A Prefer~:ed Shares shall be in the same positim as if the
Class A Redemption Am.)1mt had been determined from tl-v~ Issue Date to ~
equal to the amount to hThich the redemption amount is. so inceased or
decreased.
-.
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1r \.he event that at a..'"1y time (x) the Canada Revenue Agency determines, or
U: "a taxing ::.uthority successfully alleges or makes or proposes to make an
a! : .~ssment on the basis that the fr.h market value at the Issue Date of the

:,

r~ 'hlSferred

Assets is an amount other than the amount determined by the


Redemption Amotmt is an amount
1
0: ,1-cr than the Designated Amoun ~ (or, where clause (i) applies, the Final
. " V;..lue), the company shall adjust at.,y and all payments before or after such
tii-te to reflect the actual amount of the Oass A Redemption Amount as
d~.termined by a court of competent jurisdiction or other competent tribunal
a. '.'is agreed between the Company and either the Canada Revenue Agency
04~ ano~er so,mpetent. taxing author; ty, proyided that such o9ligation Jo make
. ,.
ac;,,ustments ~hall be sulaject to the ~ompany (or any successor thereto) and
ar:J shareholder or ~ormer shareholder of the Company ex.1la'usting or
vv; living its right of appeal to a tri9:ma1 or court of competent jurisJiction;
aJ:!Y adjustni,ent required pursua..1t to this clause shall be made effective as of
th~ Issue Date and all necessary adjustments shall be made to any and all
p ?:,rments of dividends or any other amounts such that, after such
a(:htstments, t:he Company and the l:olders of Class A Preferred Shares shall
b.:.: in the !;lame position as if the Class A R,edemption Amount had been
t.!:"..ennined from the Ji:;sue Date to L2 equal to the amount to which the Class
l.
A .~edemption Amotmt is so increated or decreased.
o~ mpany, with the result that the CI.ass A

(t~

(7)

'

..

_.,>.;ue D ..2" mean:; the first date upon which. any Oass A Preferred Shares are
i&:-..ied. .
1

,;:~';:ansfcr 'ecl Assets" :::neans the 100% member~hip interest i.."1

H.J. Heinz
CoOperatief U.A. acquired by the Company from Heinz Credit LLC, a
li.."l\ited li;:,bility company existi."'l.g under fr,e laws of the State of Delaware on the
Iss<te Date.
Ir~vestme, .ts

2'l.2

Non-Vob..1g

Subject to ~he Ac:, except when no other shares of \:he Company are issued and outstanding,
the holders of tl1<! Class A Preferred Shar es shall not be entitled to receive notice of or to
attend any meeti..1 gs of the shareholders of the Company and shall not be entitled lo vote at
any such meetings (except where the holders of :t specified class of shares are entitled to
vote separately as a class as provided in the Act).
27.3

Dividends .

Subject l .'.> the A:.;t, the Cl.ass A Preferred Shares shall be entitled to receive, as and when
dE'.?ared- by the -~X>ard of ~.i.rectors .iri its sole disa:etion but in priority to any paymenf of
divjdend:: on th;! Common Shares, fixed, preferential, non-cumulative, cash dividends equal
to 7% of 'lle Oa: s A Redemption Amount, payable per annum on the Dividend Payment
D<l~~. Th-:! holder.J of the Cl.ass A Preferred Shares shall not be entitled to any dividend other
than or b exce$(: of the non-cumulative cash dividends provided for above. If within 3
months after the ~xpiration of any fiscal year of t:!1e Company the board of directors in its
-44-

..
,

'

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'

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discretion shall ;not have d~clared the said f~~ed preferential 'd ividend or any part thereof on
the Oass A Preferred Shares for such fiscal year then the rights of the holders of the Class A
Preferred Shares to such dividend or any 1,Utded~ed part thereof s~. be .forever
extinguished. For any period which is less than a full year with respect to any Oass A~
Preferred Share which is issued, redeemed or purchased during suCh year~ dividends shall .
be deemed to accrue on_a daily basis and shall be equal to the amount ;calculated by
multiplying 7% of the Oass A RedemptionAmount by a fraction of. which th'Rnumerator is
the number of days in such period (including the day at the beginning of such period and
excluding the day at the end of such period) and of which the denominator is the number of.
days in such year (including the day at the beginning thereof and excludin,g the Di\Tidend
Payment Date at the end thereof). If, by reason of insolvency provisions of applicable law or
for any other reason, on any Dividend Payment Date the dividends declared as of such date
are not paid in full on all of the Class A Preferred Shares then outstanding, such unpaid
dividends shall be paid on a subsequent date or dates determined by the boa1d of d.irectors
of the Company.
27.4

Retraction

(1)

Retraction. Subject to the Act and to the prov1s1ons of Article..; 27.4{~) and
27.4(3)below, a holder of Class A Preferred Shares shall be entitled lo require the
Company to redeem at any time on or after the date of issue the:reof all or any
portion of the Class A Preferred Shares registered in the name of such holder.

(2)

Retraction Procedure. In order to elect to have the Company redeem Class A


Preferred Shares pursuant to the above retraction privilege, a holder of Class A
Preferred Shares must tender to the Company, at its registered office, the certificate
or certificates representing the Cass A Preferred Shares which the holder wishes the
Company to redeem, together with a written request specifying that the holder
desires to have all or a specified number of the shares represented by ouch ce:rtificate
or certificates redeemed by the Company on a retraction date selected by the holder.
Upon receipt of all necessary documentation, the receipt of all or uny portion of
which the Company may waive in its sole discretion, the Company shall, subject to
Article 27.4(3), redeem such Oass A Preferred Shares duly tendered pursuant to this
retraction privilege at a price per share equal to tlie Oass A Redemption Price. The
tender of the certificate or certificr1tes by a holder of Class A Preferred .Shares
pursuant to this Article 27.4(2) shaH be irrevocable unless payment ~)f the dass A
Redemption Price shall not be duly made by the Company to the holci ; r on or before
the retraction date. In the event that payment of the Class A RedempL.m Price is not
made by the Company on or before lhe retraction date, the Company ;hall for;!1with
thereafter return the holder's deposited share certificate or c!!rtificat~~, lo thf< j ~older.
Ii a holder of Class A Preferred Share.q tenders for redemption pursue>.:.~ to th!; above
retraction privilege less than all of the Class A Preferred Shares reprt:r;cnted ~y any
certificate or certificates, at the request of the holder, the Company ::-~tall is!'ue and
deliver to such holder, at the expense of the Company, a new certificm.c representing
the Oass A Preferred Shares which are not being tendered for redeniption. On the
retraction date, the Company shall .<leliver the aggregate dass A Redemption Price
for each Class A Preferred Share so redeemed to the former holder therecf. The
- 45-

,..

.i .'

CJ.nss A i~edemption Price may be satisfie:l, at t11e Company's option, by cheque


p~:)'ablc '.' ii. lawful money of Canada at par at any branch in Canada of the
0Jmpan:: s bankers or by the isi.uance and delivery by the Company to the holder of
a ~ ::iemar ~l promissory note with a priricipal amount equal to the Class A
R"demp~ )n Price ;'or each Class A Preferred Share so redeemed multi.plied by the
n ~nber:c : Class A l:ireferred Shares so red~ed. Upon such payment being made,
c' Clas.-::'\ Prefer.-i?d Shares in respect o:.: which such payment is made shall be
r ' ~emi:: The aag"5 A Pref~ired Shares sd :edeemed shall be cancelled.
1

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:'m an . f after th~ retradi.cin date, the Cl~Lll A Preferred Shares so redeemed shall

c~: se to' .~ entitle<~ "to participate in any C:dribution of 'the assets of the Company

~: 1 the ~;Ider thereof shall not be entitl:'.t.l to exercise any of the other rights of
sbarehol1 \nS in respect thereof unless payment of the Class A Redemption Price
sliau not':)e made on the retraction date, fa which event the rights of such holders
shall remain unaff~cted.

(3)

Retractim1 Subject to Applicable Law. If, as a result of insolvency provisions or other


provisions of applicable law or the specinl rights or restrictions attaching to any
shares of .\ he Company ranking prior to the Class A Preferred Shares, the Company
is not p<~rmitted to redeem all of the Class A Preferred Shares duly tendered
pursuant to the above retraction privilege, the Company shall redeem only the
maximum number of Class A Preferred Shares which the board of directors of the
Compan~' determines the Company is then permitted to redeem. Such redemption
shall be _nade pro rata, disregarding fra.:tions of shares, from each holder of
te: -derecl :::lass A Preferred Shares according to the number of Gass A Preferred
Sf.r:res h : .~dered for redemption by each such holder and, at the request of the
ho!der, 1h Compm.y shall issue and deliver. to each such holder at the expense of
fr..~ Com..:my a new certificate representi.."'1g the Oass A Preferred Shares not
re ~emel'. by lhe Co::npany. So long as th:? board of directors of the Company has
a.: )cl.in r 100 fai~ iii making any of the d?!.erminations referred to above as to the
n::__tbe.r Oass A Preferred Shares whiC:~ the Company is permitted at any one
ti,.~ to :: C.:eem, neither the Company no: the board of directors shall have any
lic..:ility i! 1h e evenf lhat any such deter.mi.v1:.ion proves to be htaccurate.

27.5

Redcmpt:on

(1)

Redemption at Option of Company. Subject to the Act and to the provisions of


Article 27.5(3), the Company may, upon giving notice as hereinafter provided,
redeem at any time the whole or from time to time any part of the then outstanding
Class A Preferred Shares on payment for each Oass A Preferred Share to be
redeemed of an amount equal to the Oass A Redemption Price. The Class A
Preferred Shares so redeemed shall be cancelled.

(2)

Partial Redemption. In case less than all of the Class A Preferred Shares are to be
redeemed at any time, the shares to be redeemed shall be selected by lot or some
oth.~ ranciom selection method in such manner as the board of directcrs of the
Compani.in its sole discretion determines to be equitable, and need not be selected
- 46 -

.,

Ii

.. .
pro rata according to shareholders. . If less than all of the Oass A Preferred Shares
represented by any certificate shall be redeemed, at the request of the holder, a new
certificate representing the balance .of S-u& shares shall
issued ito the: holder
thereof at the expense of the Company upon presentation arid surretaer of.\1ie first.
mentioned certificate.
..

.;r.
Method of Redemption. In a.ny case of redemption of Class A Prefe~ed Sh~es, the
Compa,n y shall, at least one (1) hour before the date and time specified fo~
redemption, give to each holder of Class A Preferred Shares to be r4d.'eemeff:at the1
date and time specified in the notice (hereinafter referred to as a "registered ,holder.
of Gass A Preferred Shares to be redeemed") a notice in writing of t-:\e intention of
the Company to redeem such Class A Preferred Shares, such notice .~o be given as
provided in Article 27.7 hereof. Such notice shall set out the numhr:r of C!ass A
Preferred Shares held by the pernon to whom it is addressed which arc to be
redeemed, the Oass A Redemption Price, the date and time ~pecified for redemption
and the place or places in Canada at which the holder may present anci surrender the
certificates representing such Class A Preferred Shares for redemption. All or any
part of the notice requirements may be waived, by conduct or otherwise, by any
registered holder of Qass A Preferred Shares to be redeemed. On or after the date
and time so specified for redemption, the Company shall pay or cause to be paid to
or to the order of the registered holders of the Class A Preferred Shares to be
redeemed the Oass A Redemption Price of such shares on pr~sentation and
surrender, at the registered office of the Company or at any other plai:e or places in
Canada specified in the notice of redemption, of the certificate or certificates
representing the Oass A Preferred Shares called for redemption. Pay:nent for Class
A Preferred Shares being redeemed may be satisfied, at the Company's option, by
cheque payable in lawful money of Canada at par at any branch in Canada of the
Company's bankers or by the issuance by the Company of a dema:ld promissory
note with a principal amount equal to the Redemption Price for t!ach Class A
Preferred Share so redeemed multiphed by the number of Cass A P~'derred Shares
so redeemed.

be

(3)

From and after the date and time specified for redemption in. :ny notice of
redemption, the Oass A Preferred !3hares called for redemption sh:.)J cease. to be
entitled to participate in any distribution of the assets of the Corr pru1y ;;.1.id the
holders thereof shall not be enlitled to exerdr:;e any 9 the o :er rigl1ts as
shareholders in respect thereof unless payment of the Class A ReC.~mpticn Price
shall not be made upon presentation and surrender of the share certificates in
accordance with the foregoing prolisions, in which case the rights c~ such holders
shall remain unaffected.
27.6

Purchase for Cancellation

The Company may at any time or from time to time purchase for cancellation all or any part
of the then outstanding Oass A Preferred Shares at the lowest price or prices at which, in
the opinion of the board of directors of the Company, such shares are then obtainable but
not exceeding an amount per share equal to the Oass A Redemption Price.
-47-

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Notices

Any notici~, cheq .1.e, notice of redemption or other l.>:mmunicaticn from the Company herein
provided for sha,1 be sent lo the holders of the Clas.> A Preferred Shares in accordance with
Part 24 ot these / rticles.

27.S

Liquida.ti.an, Dissolution or Winding-up

In the event cf the liquidation, dissolution or winding-up of the Company, whether


voluntary or inv ~luntary, subject to the rights of t 1.i : holders of any class of shares ranking
se~ilor to !:it pari ..r.ssu wil:h the Oc:ss A Preferred b1tares, each holder of a Class A Preferred
Sh;:.re sruJ ~ be er itled to receive for ea~h Oass A ?referred Share, the Oass A Redemption
P: .i : e anr' -&
o mo ! prior to ::m y dis::ribution on the C:munon Spares.
2'1.9

P.lority r Dividends

Ti .~ Oa.;~~

A P!. !erred Shares shall rank, as to entitlement to dividends, senior to the

CG,nmor ~;ha.reu.

. 48-

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TABLE OF CONTENTS

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PARTl
INTERPRETAT ION

1.1
1.2

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Definitions .................. .'.........................................................~.:.: ........... :.~::........~-........... :.. 1
~-

Business Corporations Act and Interpretation Act Definitions Applicable ............ 2


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PART2

SHARES AND SHARE CERTIFICATES

2.1
2.2
2.3
2.4
2.5
2.6
2.7

2.8
2.9
2.10

Authorized Share Structure ............................................................................................ 2


Form of Share Certificate ................................................................................................ 2
Shareholder Entitled to Certificate or Acknowledgment. .......................................... 3
Delivery by Mail ............................................................................................................... 3
Replacement of Worn Out or Defaced Certificate or Acknowledgement ............... 3
Replacement of Lost, Destroyed or Wron gfully Taken Certificate .......................... 3
Recovery of New Share Certificate ................................................................................ 4
Splitting Share Certificates ............................................................................................. 4
Certificate Fee ................................................................................................................... 4
Recogrlition of Trusts ...................................................................................................... 4
PART3
ISSUE O F SHARES

3.1

3 .2
3.3
3.4
3.5

Directors Au thorized ....................................................................................................... 4


Conunissions and Discounts .......................................................................................... 5
Brokerage .......................................................................................................................... 5
Conditions of Issue ................................... :...................................................................... 5
Share Purchase Warrants and Righ ts ............................................................................ 5
PART4
SHARE REGISTERS

4.1
4.2

Central Securities Register .......... .'................................................................................... 5


Closing Register ............................................................................................................... 6
PARTS
SHARE TRANSFERS

5.1
5.2
5.3
5.4
5.5

Registering Transfers ............................................................................. :......................... 6


Form of Instrument of Transfer ..................................................................................... 6
Transferor Remains Shareholder .................................................................................. 7
Signing of Instrument of Transfei :..................................................... .......................... 7
Enquiry as to Title Not Required ........................................................ ............ ............. 7
- 49-

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1.1 .

5 , ~J

T 'nsfe -. .}ee...............................'............ :.... /."..................................................................... 7


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6.i
6.2

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PARTG

TRANSMISSION C!' SHARES

()

L': '.;al PE.:' '.;cnal RE.ptesentative Recognized on Death ................................................ 7


Rights o ~ Legal Personal Representative: ...................................................................... 8
..
PART7:1!
ACQUISITION OF COMI'ANY'S SHARES

7.1

7.2

7.3

C.:>mpar./ Authorized to Purchase or Otherwise Acquire Shares ............................ 8


r\: ~ Pure! .ase, Redemption or Other Acquisition When Insolvent ........................... 8
Sale and'\'oting of Purchased, Redeemed or Otherwise Acquired Shares ............. 8
PARTS
BORROWING P OWERS

8.1

130:.rov.:i.r.g Powers ............................................................................................................ 9


.
'
PART9
ALTERATIONS

9.1.
9.7.

9.:-.
9.4.

1!. "erafr,, ~ of Au!..h.orized Share Structu::i: ............................................................;....... 9


S : "-:>cial l, ~hts or ;zestrictions ....................................................................................... 10
C.~'lilge. 'f Name ............................................................................................................ 10
C/i":1er A: erations ........................................................................................................... 10
PARTlO
MEETINGS 01~ SHAr;.EHOLDERS

10.1
10.2
10.3
10.4
10.5

10.6
10.7
10.8
10.a,

Ar.nual (:e.neral Meetings ............................................................................................. 10


Resoluti.i..n Instead of Annual General Meeting ........................................................ 11
C:-.Uing c ; Meetings of Shareholders ........................................................................... 11
Notice fc:( Meetings of Shareholders ........................................................................... 11
Record f)at~ for Notice .................................................................................................. 11
Record Date for Voting ................................................................................................. 12
Failure to Give Nbtice and Waiver of Notice............................................................. 12
Notice o{ Special Business at Meetings of Shareholders .......................................... 12
N otice
o~~o
. ..
.
. issent Righ ts ................................................................................................
12

'

11.1
11.2

PARTll
:: PROCEEDINGS AT MEETINGS OF SHAREHOLDERS

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..............................................................................................................
13
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11.3
11.4

11.5
11.6
11.7
11.8

11.9
11.10
11.11
11.12
11.13
11.14
11.15
11.16
11.17
11.18
11.19

11.20
11.21
11.22
11.23

Quorum ...................................................... :.......................................... - ........................ 13


' .
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One Shareholder May Constitute Quorum ......................................... ~ ........, .............. 14
Persons Entitled to Attend Meeti11g................. .'.......... .'..................... .,.'.:........L ............ 14
Requirement of Quorum ......................................... :.... .'......................; .. ,......... ~............ 14
Lack of Quorum ................................................................................... :: ......... :: ............. 14
Lack of Quorum at Succeeding Meeting ......:................................... :.......... ::: ............ 14
Chair ...............................................\......................:. .. ........ 14
Selection of Alternate Chair.......... :................................................................................ 15
Adjournments ............................................................................... ;................................. 15
Notice of Adjourned Meeting ........................................................ .'.............................. 15
Decisions by Show of Hands or Poll ........................................................................... 15
Declaration of Result ..................................................................................................... 15
Motion Need Not be Second ed .................................................................................... 16
Casting Vote .................................................................................................................... 16
Manner of Taking Poll ................................................................................................... 16
Demand for Poll on Adjournment. .............................................................................. 16
Chair Must Resolve Dispute ......................................................................................... 16
Casting of Votes ............................................................................................................. 16
No Demand for Poll on Election of Chair ................................................................. 16
Demand for Poll Not to Prevent Continuance of Meeting ...................................... 17
Retention of Ballots and Proxies ................................................................................... 17

PART12
VOTES OF SHAREHOLDERS
12.1
12.2
12.3
12.4

12.5
12.6
12.7
12.8
12.9
12.10

12.11
12.12
12.13

12.14
12.15
12.16

Number of Votes by Shareholder or by Shares ......................................................... 17


Votes of Persons in Representative Capacity............................................................. 17
Votes by Joint Holders .................................................................................................. 17
Legal Personal Representatives as Joint Shareholders ............................................. 18
Representative of a Corporate Shareholder ............................................................... 18
When Proxy Holder Need Not Be Shareholder......................................................... 18
When Proxy Provisions Do Not Apply to the Company ......................................... 19
Appointment of Proxy'Holders .................................................................................. 19
Alternate Proxy Holders .............................................................................................. 19
Deposit of Proxy ............................................................................................................. 19
Validity of Proxy Vote .................................................................................................. 10
Form of Proxy .................................................................................................... ............ 20
Revocation of Proxy ...................................................................................................... 21
Revocation of Proxy Must Be Signed ........................................................................ 21
C..nair May Determine Validity of Proxy . ................................................................... 21
Production of Evidence of Authority Vote ............................................................ 21

to

- 51 -

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PAR1'13
DIRECTORS

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I'.::st Dir..r::torsi N:tmber of Directors .......................................................................... 21


t:.:~.ange.-

:N umb,=-:. of Di.rectors................................................................................... 22
[ ....ectG . Acts V~~l.id Despite Vacancy .... ................................................................... 22
( .aJific ).ons of ::1irectors ....................... .................................................................... 22
:i." .nun<..- ::.. tion of ;)irectors ............... ~.; ..... -' .................................................................. 22
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I..:..unbu:. :~ment oi Expei'lSes of Diiector.:>................................................................... 23


$ .~cial ~ ;;muner~.tion for Directors ........................................................................... 23
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PART14 ELEC'i"ION AND REMOVAL OF DIRECTORS

Election ;;.t Annual General Meeting ........ :.................................................................. 23


Consent to be a Director ................................................................................................ 23
Failure to Elect or Appoint Directors .......................................................................... 24
14.4 Pfaces of Retiring Directors Not Filled ....................................................................... 24
14.5 Director~~ May Fill Casual Vacancies ........................................................................... 24
14.6 Remainir..g Directors' Power to Act......... .':....................... :.......................................... 24
14.7 Shnreholders May Fill Vacancies ................................................................................. 25
14.8 A,dditior:;1J Directors ............................................ .......................................................... 25
14.9 c : . asing -;:o be a Director ................................................................................................ 25
14.10 f,-~mova ;. )f Director by Shareholders .......................................................................... 25
H ~ 1 R ~Hlovai..Jf Director by Directors ................................................................................ 26

14,l
14.2
14.3

PARTIS
ALTERNATE DiR~CTORS

E.d
J.5.2
lE,;.3
15.4
15.5
15.6
15.7
15.8

t\ :p oiriL._i.e nt of / J ternate Director ............................................................................. 26


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........................................................................................................ . 26

A.~ernatr. for More Than One Director Attending Meetings ................................... 26


Co;LSent .:.~esolutions ...................................................................................................... 27
Alternate Director Not an Agent ............ :.................................................................... 27
Revocation of Appointment of Alternate Director.................................................... 27
Ceasing to be an Alternate Director ............................................................................ 27
Rez:nuner\,tion and Expenses of Alternate.Director .................................................. 27
.,

PART16 ,..

POWERS AND DUTIES OF DIRECTORS

16.1
16.2

Pov-1ers of Management. ................................................................................................ 27


Appoinh:i.;.e nt of Attorney of Company ...................................................................... 28
- 52 -

PART17
INTERESTS OF DIRECT.ORS AND OFFICERS

17.1
17.2
17.3
17.4
17.5
17.6
17.7
17.8

Obligation to Account for Profits ................................................................................ 28


Restrictions on Voting by Reason of Interest.. ........................................................... 28
Interested Director Counted in Quorum .................................................................... 28
Disclosure of Conflict of Interest or Property ............................................................ 28
Director Holding Other Office in the Company ........................................................ 29
No Disqualification ........................................................................................................ 29
Professional Services by Director or Officer .............................................................. 29
Director or Officer in Other Corporations .................................................................. 29
PART18
PROCEEDINGS OF DffiECTORS

18.1
18.2
18.3
18.4
18.5
18.6
18.7
18.8
18.9
18.10
18.11.
18.12

Meetings of Directors .................................................................................................... 29


Voting at Meetings ......................................................................................................... 29
Olair of Meetings ........................................................................................................... 30
Meetings by Telephone or Other Communications Medium ................................. 30
Calling of Meetings ........................................................................................................ 30
Notice of Meetings ......................................................................................................... 30
When Notice Not Required .......................................................................................... 31
Meeting Valid Despite Failure to Give Notice ........................................................... 31
Waiver of Notice of Meetings ....................................................................................... 31
Quorum ........................................................................................................................... 31
Validity of Acts Where Appointment Defective ....................................................... 32
Consent Resolutions in Writing ................................................................................... 32
PART19
EXECUTIVE AND OTHER COMMTITEES

19.1

19.2
19.3
19.4

19.5

Appointment and Powers of Executive Committee ................................................ 32


Appointment and Powers of Other Committees ...................................................... 33
Obligations of Committees ........................................................................................... 33
Powers of Board ............................................................................................................. 33
Committee Meetings .................................................................. :.................................. 34
Pl~.RT20

OFFICERS

20.1
20.2

20.3
20.4

Directors May Appoint Officers .................................................................................. 34


Functions, Duties and Powers of Officers .................................................................. 34
Qualifications .................................................................................................................. 34
Remuneration and Terms of Appointment.. .............................................................. 35
-53-

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PART21
INDEMNIFICATION

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21. l
21.2
21.3
21.4
21.5

Definitio:1s ....................................................................................................................... 35
M~ndatc..q Indem.nification of Directors .................................................................... 35
Permitted Indenurification ............................................................................................ 35
Non-Coi:1pliance with Business C01porat:ons Act....................................................... 36
Compan. May Purchase Insurance ... .'..'.~-.:..... :.~ ......... .'................................................ 36
PART22
DIVIDEND:;

22. l
22.2
2/..3

2: 1
22.5
22.6
2~ 7
22.o
22.9
22.10
22.11
22.12
22.13

P. :. men! .)f Dividends Subject to Specia:. Rights ....................................................... 36


D.:darat; ;n of Dividends ..............: ................................................ :.............................. 36
~~ Noti< ~ f{equired .................................. ~ .................................................................... 36
I\ :ord r; r1te............................ ................................................................................... 37
:t{~.:inel;' ," f Payin.g Dividend ......................................................................................... 37
S~~~-~em~ _t of Diffii::ulties ............................................................................................... 37
V\ .i1en Di ;?<lend Payable: ....................................................................................... 37
D~ :iden~ '.' to be f~id in Accordance with Number of Shares ................................. 37
Receipt b; Joint Shareholders ...................................................................................... 37
Dividert(l Bears No Interest ................................... :...................................................... 37
Fractional Dividends ..................................................................................................... 38
Payment of Dividends ................................................................................................... 38
Capitalization of Retain.ed Earnings or Surplus ........................................................ 38
PART23
ACCOUNTING RECORDS'. AND AUDITOR

Recordin,,... of Financial Affairs ..................................................................................... 38


Irn;?ectk
~ of Acwunting Records ............................................................................... 38
23.2.
23.3 R~! :lune1 :Uon of P.uditor ............................................................................................. 38
23.1

PART24
N OTICES

24.1
24.:l
24.3
24.4
24.S.
24.6

lvi~l:hod

c..I Giving Notice .............................................................................................. 39

D~e:.med !(eceipt.............................................................................................................. 39
Ce;-tificalf': of Sending .................................................................................................... 40
Notice to joint Shareholders .......................................................................................... 40
N::>tice to Legal Personal Representatives and Trustees ........................................... 40
Undelivered Notices ...................................................................................................... 40

-54-

PART25
SEAL

25.1
25.2
25.3

Who May Attest Seal ..................................................................................................... 41


Sealing Copies ................................................................................................................ 41
Mechanical Reproduction of SeaL................................................................................ 41
'

PART26
PROHIBITIONS

26.1
26.2
26.3

Deiinitions ........................................................................................................................ 42
Application...................................................................................................................... 42
Consent Required for Transfer of Shares or Transfer Restricted Securities .......... 42
PART27
CLASS A PRF.FERRED SHARES

27.1
27.2
27.3
27.4
27.5
27.6
27.7
27.8
27.9

Definitions ............................................................. :......................................................... 43


Non-Voting ..................................................................................................................... 44
Dividends ..................... :................................................................................................. 44
Retraction ........................................................................................................................ 45
Redemption ..................................................................................................................... t;,6
Purchase for Cancellation ............................................................................................. 47
Notices ............................................................................................................................ 48
Liquidation, Dissolution or Winding-up .................................................................... 48
Priority of Dividends ..................................................................................................... 48

55 -

Appendix 4
Qualification of Heinz Canada Holdings ULC as an opaque entity
A

C haracteristics of opaque entities

Comparison rules
1.

IIcinz Canada Holdings ULC ("Heinz Canada") is a British Columbia Unlimited


Liability Company subject to the British Columbia Business Corporations Act
("Canadian Act"). For your reference, the Articles of Association ("Articles") of Heinz
Canada arc enclosed in Appendix 3.

2.

Under Luxembourg domestic tax law, no specific provisions exist to determine whether
an entity established under foreign laws may be considered as transparent or opaque
entity for Luxembourg tax purposes.

3.

Whereas article 159 LITL deals with opaque entities, article 175 6 LITL directly provides
for a list of transparent entities.

4.

Based on parliamentary documents, the Luxembourg tax regime of an entity is to be


determined depending on the classification of said entity, i.e. either as "societe de
pcrsonnes" (which qualify as transparent entities) or as tax resident entity subject to
7
Luxembourg corporate income tax (which qualify as opaque entities) .

5.

Accordingly, in order to assess the Luxembourg tax treatment of a foreign entity, the
characteristics of this entity should thus be compared to the characteristics of similar
entities governed by Luxembourg law8

According to Article 175 LITL (as modified by the law dated 21 December 2007), arc to be considered as transparent entities
for tax purposes, "Jes socictes en nom collectif, Jes socictcs en commanditc simples, Jes groupcmcnts d'interet economiquc, Jes
groupcmcnts curopcens d'intcrct cconomiquc et Jes societcs civiles" except the non-resident entities covered by Article 2 of the
EU Parent-Subsidiaries Directive or by Article 3 of the EU Merger Directive.
7

Report of the special commission, parliamentary document N 571 (ordinary session of 1967-1968). p.85 (The main example
of the tax resident entity subject to corporate income tax being the Luxembourg "socictc de capitaux").
8

Sec in particular: (i) Parliamentary document num. 571 (ordinary session of 1967-1968), comments on Article 17 (current
Article 14) and (ii) IFA, Livrejubilaire de l'IFA Luxembourg, Section 6-37, 2008.

(14)

6.

7.

8.

The first approach, exposed by the Luxembourg doctrine9, is the entrepreneur approach,
which defines two main criteria that make it possible to define a transparent entity:

The entrepreneur's risk: the partners have to participate in the company's activity,
as if they were carrying on the company's activity in their own name. The
responsibility of the partners is unlimited, meaning that they are liable to an
amount higher than their contribution.

The entrepreneur's initiative: the partners have to participate directly in the


decisions of the company. The decisions must not be taken through the
company' s bodies. However, this does not mean that the partners cannot delegate
their right to a representative appointed by each partner at his sole discretion.

The second approach is based on a German case law of 1930. According to this analysis,
four legal characteristics of a foreign entity should be analyzed to determine in which
category of Luxembourg entity the foreign entity should be classified:

Management of the company: an entity that is managed by its partners ts a


transparent entity. If there is a separate management, then it is opaque.

fmp_lication of the partners in the decision of the entity: [f there is a strong


implication, then it should be transparent otherwise it would be opaque.

Level of liability of the partners: when the partners have an unlimited liability in
principle it should be transparent, whereas it deals with a limited liability it would
be opaque.

The free transferability of the shares of the entity: If the interest in the entity is
subject to the agreement of the partners then the entity in principle should be
transparent, otherwise it should be opaque.

Based on the above, the main characteristics to determine whether Heinz Canada mainly
has the characteristics of an opaque entity, or whether it should be treated as a transparent
entity, should be as follows:

Free transferability of shares;


Decision making process;
Separate Management representation;
Separate legal personality;
Sharing of profits and losses determined at the level of the entity;
Capital divided into shares;
Limited legal liability of the shareholders ...

Alain Steichen, reconnaissance de la personnalite fiscale des entreprises etrangeres, rapport luxembourgeois, cahiers de droit

fiscal international, 1988.

(15)

9.

Heinz Canada will be considered as an opaque entity for Luxembourg tax purposes, if a
majority of the abovementioned criteria are satisfied by Heinz Canada under the
applicable Canadian laws and its Articles of Association.

10.

From the analysis of the Canadian Act and the Articles of Association of Heinz Canada,
the latter has in majority corporate characteristics, and will therefore be considered an
opaque entity ( "societe de capitaux ") for Luxembourg tax purposes (See Section B
below).

B.

Analysis of relevant provisions of Canadian Act and Articles of Heinz Canada

11.

Upon the review of the relevant provisions of the Canadian Act and the Articles of Heinz
Canada, the above mentioned criteria can be analyzed as follows with regard to Heinz
Canada:
Restrictions on tlte transfer ofthe interest in Heinz Canada

12.

In principle, shares in a capital company should be freely transferable. However, under


Luxembourg commercial law, shares in a "societe a responsabilite limitec" or "SARL"
(capital company for Luxembourg tax purposes) are transferable with certain restrictions,
such as prior consent of the other shareholders.

13.

Similar rules apply to Heinz Canada where the transfer of shares is subject to the prior
consent of its Directors. (Part 26(3) of the Articles).
Decision making process at the level ofshareholders ofHeinz Canada

14.

Under the Luxembourg commercial law, the decision making process in a Luxembourg
opaque entity is made in a shareholder meeting, and is as a principle subject to a quorum
and majority rules, whereas the unanimity rule is the principle for a transparent entity.

15.

A decision making process similar as for a Luxembourg opaque entity applies for Heinz
Canada, where ordinary or extraordinary shareholder meetings have to be held respecting
quorum and majority rules (Part 10 to Part 12 of the Articles).
Management of Heinz Canada

16.

In a Luxembourg opaque entity (societe anonyme) the management of the company's


business is conferred to one or several managers or a statutory body, whereas a
transparent entity is managed directly by its members. A managing director may
additionally be appointed for the day-to-day management of an opaque entity.

(16)

17.

The management rules applying to Heinz Canada are similar to those applying to an
opaque entity. Pursuant to the Articles of Association of Heinz Canada, the management
of the company is vested in directors which are elected by the shareholders of the
company, meaning that Heinz Canada is not being managed by its members. Moreover,
Directors of Heinz Canada may elect or appoint other officers of the company with
variable powers and duties (Part 13 to Part 20 of the Articles).

Legal personality ofHeinz Canada


18.

Under the applicable Canadian law, Heinz Canada has legal personality distinct from the
one of its members, and can therefore be a proper party to contracts, sue and be sued and
hold title to property in its own name.

Sharing ofprofits and losses in Heinz Canada


19.

Contrary to the mechanism applying to Luxembourg transparent entities, profits and


losses of a Luxembourg opaque entity are determined at company's level and not directly
shared amongst its shareholders.

20.

The same rules apply to Heinz Canada, as a formal resolution is required to allocate
profits (or losses) to a shareholder. (Part 22 of the Articles).

Capital ofHeinz Canada is divided into shares


21.

As in a Luxembourg opaque entity, the share capital of Heinz Capital is divided into
shares (Part 2 of the Articles).

22.

This is a further indication for the treatment of Heinz Canada as an opaque entity, rather
than as a transparent entitiy.

Liability ofthe members of Heinz Canada


23.

Shareholders of a Luxembourg opaque entity bear a limited liability, meaning that they
are only liable up to the amount of their investment in the Company. By contrast, the
liability of each of the shareholders of Heinz Canada is unlimited in extent, and joint and
several in nature.

24.

Although this is different from a Luxembourg capital company, it is worth to note that
such unlimited liability is restricted to apply only to the specific periods and cases
provided by Part 2.1 of the Canadian Act. (i.e. restricted namely to periods (i) from the
start of the company's liquidation to its dissolution or (ii) only after the company's
dissolution, irrespectively of the company's liquidation).

(17)

25.

Since the potential unlimited liability of the Heinz Canada's shareholders is limited to
specific cases and periods - it is not applicable during any period before the liquidation
and/or dissolution of Heinz Canada - this will not prevent Heinz Canada to be considered
as a capital company for Luxembourg tax purposes.

C.

Conclusion

26.

Given that Heinz Canada has in majority the legal characteristics of Luxembourg capital
companies, and is subject to corporate income tax as a separate entity from its
shareholders, Heinz Canada will be considered as a capital company from a Luxembourg
tax perspective. In addition, Heinz Canada will be considered as a company resident in
Canada for the purposes of the Double Tax Treaty entered into between Canada and the
Grand-Duchy of Luxembourg.

(18)

Appendix 5
Analysis of preferred shares issued by Heinz Canada Holdings ULC
A

Characteristics of the preferred shares issued by Heinz Canada

1.

The share capital of Heinz Canada is divided into common shares and Class A Preferred
shares (the "Preferred shares"). Lux SARL currently holds all of both types of shares in
Heinz Canada.

2.

According to the Articles of Association of Heinz Canada (the " Articles"), the Preferred
shares carry the following special rights or restrictions:

C haracteristics of
the preferred
sha res

Preferred shares issued by Heinz Canada

Maturity date

No.

Dividend
entitlement

The Preferred shares have a preferred return


set at a 7% fixed rate with priority over
dividends payable in respect of common
shares. This return is non-cumulative and there
is no requirement that a dividend be declared
in any given year. Moreover, in case that a
dividend is declared it would have to come
from accumulated profit.

Ranking

The Preferred shares would rank senior to the


common stock but junior to the company's
obligations.

Liquidation
proceeds

Prior to any d istribution on the common


shares, the holders of Class A Prcfe1Tcd Shares
arc entitled to receive for each Class A
Preferred Share an amount equal to its
Redemption price.

Voting rights

No voting rights.

B.

Characterization of preferred shares as equity for Luxembourg tax purposes

3.

Based on the characteristics mentioned above, the Preferred shares issued by Heinz
Canada will be treated as equity for Luxembourg corporate income tax, municipal
business tax and net wealth tax purposes.

(19)

4.

The explanatory note to the income tax reform law no.571 of 1955 (project de Loi on
Article 114 - currently Article 97 - LlTL) points out that the distinction between debt
and equity must be made on the basis of the economic characteristics of the financial
instrument. In particular, the main economic features that characterise a financial
instrument as equity are:

the fact that the payment of the instrument's yield is dependent on the results
of the company (as opposed to a debt instrument which provides for a fixed
return irrespective of the debtor's results); and

a non-privileged ranking over the company's common stock.

5.

Given the fact that the fixed dividend is not cumulative and its approval I declaration is
subject to the existence of retained earnings available for distribution, and at the sole
discretion of the Directors of Heinz Canada, the entitlement of the holders of the
Preferred shares to the fixed dividend is linked to the results of the company.

6.

The preferred non-voting shares have a privileged ranking over the company's common
stock, however, they rank junior to the company's obligations, have a preferential right to
participate in liquidation proceeds and have no maturity.

7.

As a result thereof, the preferred non-voting shares will be regarded as equity for
corporate income tax, municipal business tax and net wealth tax.

(20)

Appendix 6
Luxembourg participation exemption regime
A.

Participation exemption regime for withholding tax

1.

Dividends distributed by a Luxembourg fully taxable resident company are in principle


subject to a 15% withholding tax.

2.

However, Article 147 of the Luxembourg Income Tax Law ("LITL") provides for an
exemption of withholding tax in Luxembourg ifthe following conditions are fulfilled :
( 1) the distributing company is:
a Luxembourg resident collective entity, which is fully taxable and takes one of
the fonns listed in the appendix to the paragraph 10 of Article 166 LITL (see
enclosure); or
a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the fonns listed in the above-mentioned appendix;
(2) the entity receiving the dividends is:
a collective entity falling under Article 2 of the amended version of the Council
directive of 23 July 1990 on the common system of taxation applicable in the
case of parent companies and subsidiaries of different Member States
(90/435/EEC, hereafter the "Parent I Subsidiary Directive"); or
a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the forms listed in the above-mentioned appendix; or
a permanent establishment of a collective entity falling under one of the two
previous categories; or
a collective entity that is resident in a State with which Luxembourg has
concluded a double tax treaty and which is fully liable to a tax corresponding to
Luxembourg corporate income tax, or a domestic permanent establishment of
such entity ; or
a Swiss resident joint-stock company that is subject to Swiss corporate income
tax without benefiting from any exemption; or
a joint-stock company or a cooperative company which is resident in a EEA
Member State (other than a EU Member State) and is fully liable to a tax
corresponding to Luxembourg corporate income tax; or
a permanent establishment of a joint-stock company or of a cooperative
company which is resident in a EEA Member State (other than a EU Member
State);
(21)

and
(3) at the date on which the income is made available, the beneficiary has been holding
or undertakes to hold, directly, for an uninterrupted period of at least 12 months, a
participation of at least 10%, or with an acquisition price of at least EUR 1.2
million in the share capital of the income debtor. If the participation is held through
a tax-transparent entity falling under 1 of Article 175 LITL, this will be regarded
as a direct participation, proportionally to the interest held in the tax-transparent
entity.

B.

Participation exemption regime for dividends received

3.

Dividends received by a Luxembourg fully taxable resident company should, in principle,


be subject to corporate income tax and municipal business tax at the aggregate rate of
28.59% for the year 2009 (for Luxembourg city).

4.

However, Article 166 LITL provides for the exemption of the dividends if the following
conditions are fulfilled:
( 1) the distributing company is:
a collective entity falling under Article 2 of the amended version of the Parent I
Subsidiary Directive; or
a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the forms listed in the appendix to the paragraph 10 of Article 166
LITL; or
a non-resident joint-stock company that is fully liable (in its state of residence)
to a tax corresponding to Luxembourg corporate income tax;
and
(2)

the beneficiary company is:

a Luxembourg resident collective entity, which is fully taxable and takes one of
the forms listed in the appendix to the paragraph 10 of Article 166 LITL; or

a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the forms listed in the above-mentioned appendix; or

a domestic permanent establishment of a collective entity falling under Article 2


of the amended version of the Parent I Subsidiary Directive; or

a domestic permanent establishment of a joint-stock company that is resident in


a State with which Luxembourg has concluded a double tax treaty; or

a domestic permanent establishment of a joint-stock company or of a


cooperative company which is a resident of a EEA Member State (other than a
EU Member State);
(22)

and
(3) at the date on which the income is made available, the beneficiary has been holding
or undertakes to hold, directly, for an uninterrupted period of at least 12 months a
participation in the share capital of the subsidiary of at least 10% or with an
acquisition price of at least EUR 1.2 million. If the participation is held through a
tax-transparent entity falling under 1 of Article 175 LITL, this will be regarded as
direct participation proportionally to the interest held by the Luxembourg holding
company in the tax-transparent entity.
5.

Any expenses incurred during the year in which a dividend is received and which are
connected to the exempt participation may only be deducted insofar as they exceed the
exempt dividend for the year in question (Article 166 LITL).

6.

Additionally, if a write-down in the value of the participation has been booked as a


consequence of the distribution of dividends, this write-down will not be deductible up to
the amount of the exempt dividend.

C.

Participation exemption regime on capital gains

7.

Capital gains realised by Luxembourg fully taxable resident companies on the disposal of
shareholdings should in principle be subject to corporate income tax and municipal
business tax at the aggregate rate of 28.59% for the year 2009 (for Luxembourg city).

8.

However, the Grand-Ducal decree of December 21, 2001 implementing Article 166 LITL
provides that capital gains realised upon the disposal of shareholdings are tax exempt if
the following conditions are fulfilled:
(1) the subsidiary is:

a collective entity falling under Article 2 of the amended version of the Parent I
Subsidiary Directive; or

a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the forms listed in the appendix to the paragraph 10 of Article 166
LITL; or

a non-resident joint-stock company that is fully liable (in its state of residence)
to a tax corresponding to Luxembourg corporate income tax;

(2) the beneficiary company is:

a Luxembourg resident collective entity, which is fully taxable and takes one of
the forms listed in the appendix to the paragraph 10 of Article 166 LITL; or

(23)

a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the forms listed in the above-mentioned appendix; or

a domestic permanent establishment of a collective entity falling under Article 2


of the amended version of the Parent I Subsidiary Directive; or

a domestic permanent establishment of a joint-stock company that is resident in


a State with which Luxembourg has concluded a double tax treaty; or

a domestic permanent establishment of a joint-stock company or of a


cooperative company which is a resident of a EEA Member State (other than a
EU Member State);

and
(3)

at the date on which the disposal takes place, the beneficiary has been holding or
undertakes to hold a qualifying participation for an uninterrupted period of at least
12 months, and during this period the participation held does not fall below l 0%
or an acquisition price of less than EUR 6 million. If the shares are held through a
tax-transparent entity falling under 1 of Article 175 LITL, this requirement must
be fulfilled not by the tax transparent entity itself, but by the beneficiary,
proportional to the interest held by the latter in the tax-transparent entity.

D.

Participation exemption regime for net wealth tax

9.

Luxembourg resident companies are subject each year to net wealth tax, at the rate of
0,5%, assessed on 1 January of each year on the basis of the net operating assets,
determined in accordance with the Property and Securities Valuation Act ("Act").

10.

Paragraph 60 of the this Act provides that certain participations may be excluded from
the net operating assets provided that :
(1) the subsidiary is:

a collective entity falling under Article 2 of the amended version of the Parent I
Subsidiary Directive; or

a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the forms listed in the appendix to the paragraph 4 of 60 of the Act
(see enclosure); or

a non-resident joint-stock company that is fully liable (in its state of residence)
to a tax corresponding to Luxembourg corporate income tax.

(24)

(2) the holding company is:

a Luxembourg resident collective entity, which is fully taxable and takes one of
the forms listed in the appendix to the paragraph 4 of 60 of the Act; or

a Luxembourg resident joint-stock company, which is fully taxable and does not
take one of the forms listed in the above-mentioned appendix; or

a domestic permanent establishment of a collective entity falling under Article 2


of the amended version of the Parent I Subsidiary Directive; or

a domestic permanent establishment of a joint-stock company that is resident in


a State with which Luxembourg has concluded a double tax treaty; or

a domestic permanent establishment of a joint-stock company or of a


cooperative company which is a resident of a BEA Member State (other than a
EU Member State);

and
(3) the direct participation held represents at least 10% of the share capital of the
subsidiary or has an acquisition price of at least EUR 1.2 million at the end of the
financial year preceding the key date for the determination of the taxable base of
the company for net wealth tax. If the participation is held through a taxtransparent entity falling under 1 of Article 175 LITL, this will be regarded as
direct participation, proportionally to the interest held by the Luxembourg holding
company in the tax-transparent entity.
11.

In the case where the participation is exempt from net wealth tax in application of the
above mentioned rules, the debts contracted for the financing of the participation are not
deductible for the purpose of the calculation of the taxable base for net wealth tax.

(25)

Appendix 7
Tax treatment of Lux SCS and its shareholders
A.

Tax transparency of a SCS

1.

According to Article 175 LITL and paragraph 11 bis of the Luxembourg tax Adaptation
Law (the "Steueranpassungs-Gesetz'', hereafter referred to as "StAnpG"), a societe en
commandite simple is not deemed to have a legal personality distinct from that of its
shareholders, and is hence considered as transparent entity for Luxembourg tax purposes.
Accordingly, the shareholders of Lux SCS are considered holding directly the latter's
assets, and realizing their profits pro rata their interest in Lux SCS, regardless of whether
the profits are distributed or not.

B.

Municipal business tax

2.

Notwithstanding the tax transparent character of Lux SCS, according to Article 2 (2) of
the Municipal Business Tax Law ("MBTL") an SCS is itself subject to municipal
business tax on its profits should these profits be derived by a permanent establishment
situated in Luxembourg that performs a "commercial activity".

3.

Article 2 of the MBTL requires two elements to be present, i.e., commercial activity
operated through a permanent establishment in Luxembourg.
Permanent establishment

4.

Paragraph 16 (1) StAnpG defines permanent establishment as follows: a permanent


establishment in the sense of the tax law is every fixed piece of equipment or place,
which serves for the operation of an established business.
Commercial activity

5.

Article 14 (1) LITL defines a commercial enterprise (or activity) as any independent
carried out with a view to profit, on a permanent basis, and with a public benefit. These
requirements are considered as cumulative, and so satisfying only one of them will not
result in the activity being commercial.

(i)

Independent activity

6.

The activity must be carried out by the taxpayer in its own name and on its own behalf,
rather than on behalf of another entity or person. The fact that Lux SCS is a legal entity
with a separate legal personality from its partner's, means that this test should be
satisfied.

(26)

(ii)

Carried out with the view to profit

7.

The activity must be undertaken with the intention of generating a profit. Under the
Luxembourg civil law, companies are deemed to have a profit motive.

(iii) Permanent character of the activity

8.

The notion of "permanence" is connected in Article 2 MBTL to the existence of a


pennanent establishment and refers primarily to intention of the person to carry out a
lasting activity in Luxembourg.

(iv) Public benefit


9.

The commercial activity must be part of the general economic life. In other words, the
enterprise must take part in the provision of goods and services to the market and must be
visible to the public as such.

10.

The jurisprudence of the Luxembourg Conseil d 'Etat has stressed the fact that, in
principle, the activity must be perceivable by third parties in order to qualify. That is to
say, the criteria of participation to the general economic life will generally require a
certain organization, effective publicity and, where appropriate, an office.

Gepragerechtsprechung
11 .

Notwithstanding the provisions of Article 14 (1) LITL, Paragraph 2 (2) of the MBTL
qualifies as commercial any activity carried out by an SCS when at least one of the
general partners is a limited liability company.

12.

However, the official commentaries to the bill of law of 21 December 2001 clearly state
that the "Gepragerechtsprechung" will only apply where the general partner is a resident
limited liability company ("societe de capitaux") or a non-resident limited liability
company that holds the interest in Lux SCS through a permanent establishment in
Luxembourg.

C.

Corporate income tax


Tax residency

I 3.

As mentioned above, Lux SCS is considered as transparent for corporate income tax in
Luxembourg. Accordingly, given that Lux SCS is not subject to tax in Luxembourg, it
will not be a Luxembourg tax resident for the purposes of Article 159 LITL.

14.

Lux SCS is not subject to Luxembourg corporate tax itself, but its shareholders arc
personally subject to tax in respect of their part in the profits of Lux SCS regardless of
whether such profits are effectively distributed or not.

(27)

Absence ofpermanent establishment


15.

In case of non-resident shareholders, their taxation in respect of their part iri the profits of
Lux SCS is to be determined pursuant the rules laid down by Article 156 LITL regarding
the taxation of non-residents.

16.

Pursuant to Article 156 (1) LITL, the commercial income realized by a non-resident
through a permanent establishment located in Luxembourg is treated as Luxembourgsourced income which is therefore subject to Luxembourg corporate income tax.

17.

According to 16 StAnpG, a permanent establishment is defined as a fixed place of


business used with a certain degree of permanence for the exercise of a commercial or
industrial activity in Luxembourg. The definition requires the existence of a tangible
presence in Luxembourg.

18.

Moreover, 16 (2) StAnpG states that a permanent establishment can also be created
when the non-resident acts through a permanent representative in Luxembourg. Provided
that the shareholders in Lux SCS will hold through their foreign (head) office their
interest in Lux SCS, they will not be deemed to act through a permanent representative in
Luxembourg.

19.

To the extent that it has no separate tax personality from its shareholders, Lux SCS will
not be considered as an agent of its shareholders and will therefore not be deemed to
represent a permanent establishment in Luxembourg.

20.

In the framework of the restructuring, GibCo 1 and GibCo2 contributed their


participations in Heinz Canada and Heinz Ireland, as well as NP 1-CAD note, to Lux SCS,
which in tum contributed these assets in the same day to Lux SARL in exchange for
shares and the execution of NP2-USD and NP3-USD notes.

21.

As a result of the above transactions, Lux SCS held for a limited period of time, a
participation in Heinz Canada and Heinz Ireland. Hence, this will not impact the analysis
regarding the Luxembourg tax treatment (both for CIT, MBT and NWT) of the
operations of Lux SCS.

22.

After the completion of the restructuring steps, the activity of Lux SCS will be limited to
the mere holding of the shares in Lux SARL and the holding ofNP2-USD and NP3-USD
notes.

23.

Lux SCS will not have any office space, equipment, bank account or any other tangible
presence in Luxembourg.

24.

Based on the above, GibCol and GibCo2 will not be considered to have a permanent
establishment in Luxembourg for the activities carried out by Lux SCS and therefore will
not be subject to CIT, MBT and NWT in Luxembourg. Under the same circumstances,
Lux SCS will not be deemed to exploit an enterprise in Luxembourg, and will therefore
not be subject to MBT.

(28)

D.

Luxembourg sourced income and withholding tax


Interest payments

25.

For Luxembourg tax purposes, interest payments made by Heinz Finance (Luxembourg)
SARL ("Lux SARL") to Lux SCS will be regarded as payments made directly to the
shareholders of Lux SCS, i.e. directly to Sharpsburg Holdings Ltd ("GibCo l ") and
Goodwood Holdings Ltd ("GibCo 2").

26.

Article 156 (6) LITL covers interest on certain types of profit-related bonds and similar
sccmities. To the extent interest payments arc not linked to the profits of the borrower,
interest income received by the non-resident shareholders of Lux SCS will fall outside of
the scope of Article 156 (6) LITL.

27.

Consequently, the withholding tax due pursuant to Article 146 LITL will not be
applicable.

Dividend payments
28.

For Luxembourg tax purposes, dividend payments made by a Lux SARL to Lux SCS will
be regarded as payments made directly to the shareholders of Lux SCS, i.e. directly to
GibCo 1 and GibCo2.

29.

Pursuant to Article 146 LITL, dividends distributed by a Luxembourg fully taxable


resident company should in principle be subject to a 15% withholding tax.

30.

The question is to determine whether a dividend distribution made to a Gibraltar


company should be subject to Luxembourg domestic withholding tax on dividends or
benefit from the withholding tax exemption provided by Article 147 LITL.

31.

Article 147 LITL provides for a withholding tax exemption in Luxembourg to the extent
the conditions for its application are duly met. Please refer to Appendix 6 for further
information in this respect.

32.

In the case at hand, the main point with respect to companies incorporated under the law
of Gibraltar is whether they are to be considered as falling under Article 2 of the Council
Directive 90/435/EEC dated July 23, t 990 from a Luxembomg tax point of view, and
therefore whether they can benefit from the withholding tax exemption provided for by
Article 147 LITL.

33.

Article 227(4) of the Treaty establishing the European Economic Community (the
"Treaty") expressly provides that the provisions of the Treaty shall apply to the
European territories for whose external relations a Member State is responsible.

34.

The Government of the United Kingdom is responsible for Gibraltar's external relations.

35.

Moreover, Gibraltar was covered at the time of the accession of the United Kingdom to
the European Economic Community on January 1st, 1973.
(29)

36.

Gibraltar was however expressly excluded from the scope of application of European
Union regulations relating to agricultural matters, value added tax harmonisation and
custom union pursuant to Article 28 of the accession Treaty. No other exclusion was
mentioned.

37.

PwC Luxembourg sent a letter to the European Commission on October 16, 1998, asking
to confirm the application of the Council Directives to companies incorporated under the
law of Gibraltar.

38.

PwC Luxembourg received an answer from the European Commission which confirmed
in a letter dated of January 22, 1999 (a copy of which will be provided upon request) that
EU directives apply to Gibraltar as follows: "The European Union (General Direction
XX! - Tax and Customs Union) confirms that Gibraltar, according to the provisions of
Article 227 paragraph 4 of the EC Treaty, is a European State whose foreign relations are
assumed by the United Kingdom. Accordingly, tax directives 90/434, 90/435, 69/335 and
85/303 are applicable to it".

39.

In addition to this confirmation it could be necessary to verify whether Gibraltar


companies are covered by Article 2 of the Council Directive 90/435/EEC dated July 23,
1990. We consider that this should be the case for the following reasons:

40.

Article 2 of the Council Directive 90/435/EEC refers to "companies incorporated under


the Jaws of United Kingdom".

41.

The United Kingdom Foreign and Commonwealth Office issued on November 17, 1988 a
Jetter on Gibraltar companies status with regard to United Kingdom laws (a copy of
which will be provided upon request).

42.

ln that letter it is expressly stated that "nationals", "nationals of member states" or


"nationals of member states and overseas countries and territories" whenever used in the
EEC Treaty are to be understood to refer to, inter alia, British Dependent Territories
Citizens who acquire citizenship from connection with Gibraltar.

43.

indeed, even if Gibraltar companies are not expressly mentioned under Article 2 of the
Council Directive 90/435/EEC, the United Kingdom considers that companies
incorporated under the law of Gibraltar must be regarded as incorporated under the laws
of the United Kingdom for the purpose of the application of Article 2 (a) of the Council
Directive 90/435/EEC and that Gibraltar income tax is analogous to its corporation tax
for the purpose of Article 2(c) of the Council Directive 90/435/EEC.

44.

Excluding Gibraltar companies from the scope of Article 2 of the Council Directive
90/435/EEC dated July 23, 1990 would be contrary to the confirmation received from the
European Commission.

45.

Therefore, both Gibraltar companies are to be considered as covered by Article 2 of the


Council Directive 90/435/EEC dated July 23, 1990 and should therefore fall under the
scope of application of Article 147 LITL.

(30)

46.

Notwithstanding the fact that companies covered by Article 2 of the Council Directive
90/435/EEC are not required to be fully subject to a tax similar to Luxembourg income
tax, they still need to be subject to tax without the possibility of an option or being
exempt. In the case at hand, both Gibraltar Companies are Gibraltar 1992 Companies, i.e.
are normal private companies limited by shares and fully taxable in Gibraltar.

47.

It is to be noted that pursuant to Article 2 (b) of the Council Directive 90/435/EEC, a


"company" of a Member State is in particular defined as a company, which "according to
the tax laws of a Member State is considered to be resident in that State for tax purposes
and, under the terms of a double taxation agreement concluded with a third State, is not
considered to be a resident for tax purposes outside the Community''.

48.

The Gibraltar income tax ordinance defines "ordinarily resident" as:

a company the management and control of whose business is exercised from


Gibraltar; or

a company which carries on business in Gibraltar and the management and


control of which is exercised outside Gibraltar by persons ordinarily resident
within the meaning of the Ordinance.

49.

The Gibraltar Commissioner of Income Tax ("CIT") will presume that a company
incorporated in Gibraltar will be liable to taxation in Gibraltar U!nless it is (i) either a tax
exempt company, or (ii) it is shown that management and control lies outside of Gibraltar
(exercised by non Gibraltar residents). Management and control is judged in accordance
with UK precedent as decided in De Beers Consolidated v Howe (1906) (i.e. control lies
with the head and mind of a company).

50.

Therefore, based on the above and to the extent that GibCo 1 and GibCo2 are tax resident
in Gibraltar, the Council Directive 90/435/EEC is applicable to them for the purposes of
the application of Article 147 LITL.
Di~posal ofthe participations by Lux SCS

51.

Even though Lux SCS is the legal owner of its participations, the future disposal of a
participation by Lux SCS would be viewed as a disposal of the said participation made
directly by the shareholders of Lux SCS, i.e. by GibCol and GibCo2.

(31)

52.

According to Article 156 (8) LITL, capital gains realized by non-residents upon disposal
of a participation are taxable in Luxembourg if the following two conditions are met
cumulatively:

the non-resident was holding an "important participation" in a Luxembourg


company. Article I 00 LITL provides that a shareholding constitutes an important
participation if the seller has held, directly or indirectly (e.g. through a fiduciary
agent), at any time during the 5 last years, a participation of at least 10% in the
company's share capital; and
the disposal of the participation takes place within six months as of the date of
acquisition of said participation.

53.

Therefore, if the disposal of the participation takes place six months after the acquisition
of shares, disposal of the said shares will not be taxable in Luxembourg.

Profit distribution from a SCS


54.

Since Lux SCS has no separate legal personality for Luxembourg tax purposes (Article
175 LITL and Article 11 bis StAnpG) profits distributed by Lux SCS to its shareholders,
i.e. to GibCo 1 and GibCo2, will not fall under the provisions of Article 146 LITL, and
will therefore not be subject to Luxembourg withholding tax.

E.

Tax treatment for net wealth tax purposes

55.

According to Article I of the Luxembourg Net Wealth Tax Law ("NWTL") and Article
11 bis StAnpG, Lux SCS should be regarded as transparent for net wealth tax purposes.
Consequently, Lux SCS will not be subject to net wealth tax in Luxembourg.

56.

The net assets of Lux SCS are in principle subject to net wealth tax at the level of its
respective shareholders. In the case where the shareholders of Lux SCS do not have a
permanent establishment in Luxembourg for their activities performed through Lux SCS,
they will not be liable to net wealth tax in Luxembourg on their interest in the assets of
Lux SCS.

(32)

LE GOUVERNEMENT
DU GRAND-DUCHE DE LUXE M BOURG
Administration des contributions directes
Bureau d'imposition
Societes 6

For the attention of Valery Civilio


PricewaterhouseCoopers
400, route d'Esch
B.P. 1443
L - 1014 Luxembourg

Companies involved :
Sharpsburg Holdings Limited (Luxembourg) SCS - Fiscal number in process
Heinz Finance (Luxembourg) SARL - Fiscal number in process
March 10, 2010

Dear Sir,

Further to your letter dated March 10, 2010 and referenced VCO/GYVN/IAKNQ9610001MCOAA relating to the transactions that the group Heinz would like to conduct, I find the contents
of said letter to be in compliance with current tax legislation and administrative practice.

It is understood that my above confirmation may only be used within the framework of the
transactions contemplated by the above-mentioned letter and that the principles described in
your letter shall not apply ipso facto to other situations.

\
18, rue du Fort Wedell

Tel.: (352) 40.800-3118

Adresse postale

Site Internet

Luxembourg

Fax: (352) 40.800-3100

L-2982 Luxembourg

www.lmpotsdlrects.public.lu