Bowring Gift Shops - July 24, 2007

IN THE MATTER OF the Pension Benefits Act, R.S.O. 1990, c. P.8, as amended (the “PBA”);

AND IN THE MATTER OF a Proposal of the Superintendent of Financial Services to make a Declaration under section 83 of the PBA, respecting the Bowring Gift Shops Pension Plan, Registration Number 488700;

TO:

Tony Karkheck
Senior Vice-President
PricewaterhouseCoopers Inc.
Mississauga Executive Centre
One Robert Speck Parkway
Suite 1100
Mississauga ON L4Z 3M3

Administrator

AND TO:

N. Ashleigh Everett
Authorised Signing Officer
Tereve Holdings Ltd.
800 - 240 Graham Avenue
Winnipeg MB R3C 0J7

Employer

AND TO:

Jerry Henechowicz
The Fuller Landau Group Inc.
151 Bloor Street West, 12th floor
Toronto ON M5S 1S4

Trustee in Bankruptcy

DECLARATION

ON March 21, 2007, the Superintendent of Financial Services (the “Superintendent”) issued a Notice of Proposal to make a declaration under section 83 of the PBA that the Pension Benefits Guarantee Fund (the “Guarantee Fund”) applies to the Bowring Gift Shops Pension Plan (the “Plan”).

ON April 20, 2007, a Request for Hearing before the Financial Services Tribunal was filed by Royal Canadian Securities Limited, a secured creditor of Tereve Holdings Limited, the employer under the Plan, in respect of the Notice of Proposal.

ON June 25, 2007, the Request for Hearing filed by Royal Canadian Securities Limited was withdrawn.

NO other Request for Hearing was delivered to the Financial Services Tribunal within the time prescribed by subsection 89(6) of the PBA regarding the Notice of Proposal to make a Declaration that the Guarantee Fund applies to Plan.

I HEREBY DECLARE, pursuant to sections 83 and 89 of the PBA that the Pension Benefits Guarantee Fund applies to the Plan for the following reasons:

The Plan is registered under the PBA; and
The Plan provides defined benefits that are not exempt from the application of the Pension Benefits Guarantee Fund by the PBA or the Regulations made thereunder;and
The Plan was wound up effective November 19, 2005, and
There are reasonable and probable grounds that the funding requirements of the PBA and regulations cannot be satisfied. Based on the latest actuarial certification, there is an estimated claim against the Guarantee Fund of $630,500 as at July 31, 2006. If funds become available from the estate of the employer, the administrator will be required to make an appropriate refund of any allocation amount received by the Plan from the Pension Benefits Guarantee Fund.