Sept 9, 2019 – Management Staffing Changes

Dear Shareholder,

Sage Properties Corp. (“Sage”) wishes to advise that Scott McCourquodale has stepped down as CEO and Sage board member effective August 30, 2019.   Mr. McCourquodale served in these roles at Sage for approximately three years. The board of directors of Sage thanks Mr. McCourquodale for his contributions to the company and wishes him well on his future endeavours. Sage does not expect to obtain a replacement for Mr. McCourquodale. The board of directors believes it can carry out its current value maximizing mandate within the current management team.

If you have any questions, please contact Sage at 403-478-9661 or by email at info@sageproperties.ca.

Sincerely yours,

Sandra Jory, CPA, CA
Board Chair
Sage Properties Corp.

Sept 14, 2019 – Notice of Annual Meeting

Notice of Annual and Special Meeting of Shareholders to be held on Saturday, September 14, 2019

The annual and special meeting (the “Meeting“) of the holders (the “Shareholders“) of Class A Common Shares (“Shares“) of Sage Properties Corp. (“Sage“) will be held in the Piper Ballroom located at the Executive Royal Hotel Edmonton Airport, 8450 Sparrow Dr, Leduc, AB, T9E 7G4 on Saturday, September 14, 2019 at 1:00 pm (Mountain Daylight Time) to:

  1. receive and consider Sage’s financial statements for the fiscal year ended March 31, 2019, together with the report of the auditors;
  2. to fix the number of directors to be elected at six;
  3. elect six directors;
  4. appoint the auditors and authorize the directors to fix the auditors remuneration;
  5. consider and, if thought advisable, with or without variation, to approve a special resolution, the full text of which is set forth in Appendix A to the management information circular (“Information Circular“) accompanying this notice, to amend the Share redemption provisions contained in Sage’s Articles of the Corporation, as further described in the Information Circular; and
  6. transact such other business as may properly be brought before the Meeting or any adjournment thereof.

Each Share entitled to be voted at the Meeting will entitle the holder to one vote at the Meeting and each Shareholder shall be permitted to vote their Shares, or any portion thereof, in favour of each of the resolutions that are considered at the Meeting.

The record date (the “Record Date“) for the determination of Shareholders entitled to receive notice of and to vote at the Meeting is August 19, 2019. Only Shareholders whose names have been entered in the register of Shareholders on the close of business on that date will be entitled to receive notice of and to vote at the Meeting, provided that, to the extent a holder of Shares transfers the ownership of any Shares after the Record Date and the transferee of such Shares establishes ownership of such Shares and demands, not later than ten (10) days before the Meeting, to be included in the list of Shareholders eligible to vote at the Meeting, such transferee will be entitled to vote such Shares at the Meeting.

A Shareholder may attend the Meeting in person or may be represented by proxy. Shareholders who are unable to attend the Meeting or any adjournment or postponement thereof in person are requested to date, sign and return the accompanying form of proxy for use at the Meeting or any adjournment thereof. To be effective, the enclosed proxy must be received by Alliance Trust Company, 1010, 407 – 2nd Street SW, Calgary, Alberta, T2P 2Y3. Alternatively, you may vote by internet using the 12 digit control number located at the bottom of your proxy at www.alliancetrust.ca/shareholders or by facsimile to 403-237-6181 at least 48 hours (excluding Saturdays, Sundays and holidays) prior to the time set for the Meeting or any adjournment thereof. A person appointed as a proxyholder need not be a Shareholder. Shareholders who are planning on returning the accompanying form of proxy are encouraged to review the Information Circular and the form of proxy, including all instructions thereon, carefully before submitting the proxy form(s).

Dated at the City of Leduc, in the Province of Alberta, this 22nd day of August 2019.

Yours very truly,

(signed) “Sandra Jory“Sandra Jory
Chair of the Board of Directors
Sage Properties Corp.

August 19, 2019

Dear Shareholder,

This email is to inform you that the notice of the annual meeting and information circular package is expected to be mailed out to shareholders this week.

As a reminder, the annual meeting will be held at 1:00 PM MT on Saturday, September 14, 2019, in the Piper Ballroom located inside the Royal Hotel Edmonton Airport in Leduc, AB.  The specific details of the matters proposed to be put before the meeting are set forth in the management information circular packages that you will be receiving.

Thank you and we look forward to seeing you at the upcoming meeting.  If you have any questions, please contact SAGE at 403-478-9661 or by email at info@sageproperties.ca.

Sincerely yours,

Sandra Jory, CPA, CA
Board Chair
Sage Properties Corp.

July 15, 2019

Dear Shareholder,

We would like to take this time to present you with the following updates for Sage Properties Corp. (“Sage”).

A. STRATEGIC PLAN UPDATE – ANNUAL GENERAL MEETING (AGM)
Sage has hired an advisory firm to assist with the development of Sage’s divestiture strategy. The board will be providing a further update to its shareholders regarding the plan at its AGM which will be held at the Executive Royal Inn, Leduc, Alberta on September 14, 2019.  Further details, including the information circular, will be mailed to shareholders this August.

B. PRINCE OF PEACE LUTHERAN SCHOOL (“POP School”)
As a purchase agreement with Rocky View Schools (RVS) was not attained, Sage commenced marketing of the school through a direct mailing campaign to educational institutions throughout Alberta. As a result of the campaign, Sage has engaged with several interested parties, including organizing tours of the property. Please note that RVS new lease agreement for the POP School comes into effect on September 1, 2019. The new lease includes an 18-month termination clause for either RVS or Sage.

C. UTILITIES OWNERSHIP
Over the past year, Sage and the Prince of Peace Village condominium board (“the Village”) held discussions to try to come to a resolution on the utility ownership issues. Unfortunately, a resolution was not obtained and so on April 5, 2019, a court date was scheduled to obtain the court’s assistance to resolve the issues. Prior to the court date, the Village hired new legal counsel who requested a postponement of the court date. Sage agreed to the Village’s request and a new court date is scheduled for August 8, 2019.

D. ALBERTA UTILITIES COMMISSION – RULE 11 WATER APPLICATION
On June 28, 2019, Sage Water Services Corp. (“Sage Water”) submitted a water rate application (the “Application”) to the Alberta Utilities Commission (the “AUC”) to increase its water rates and stabilize its water business operations. The water application forms part of the AUC Rule 11 process, details of which can be found online at www.auc.ab.ca 

E. SUBDIVISION
Sage is in on-going discussions with Rocky View County regarding subdivision.  Based on feedback received from the county, Sage is currently developing a revised proposal with its urban planner, IBI Group, to proceed with the next steps in its subdivision application.
 
F. EMPLOYEE UNIONIZATION
On June 4, 2018, Sage received notice that over 65% of its auxiliary nursing care staff were in favour of unionization and the Alberta Labour Relations Board issued a union certification to the Canadian Union of Public Employees (CUPE). After close to a year of negotiations with CUPE, Sage is pleased to report that both the Board and 100% of Sage’s auxiliary nursing care staff voted to ratify the collective agreement this past May.

If you have any questions or concerns, please contact Sage at (403) 478-9661 or at info@sageproperties.ca

Sincerely yours,

Signed “Sandra Jory”

Sandra Jory, CPA, CA
Board Chair
Sage Properties Corp.

May 3, 2019

Dear Shareholder,

We would like to take this time to present you with the following updates for Sage Properties Corp. (“Sage”).

SEPTEMBER 2019 ANNUAL GENERAL MEETING (AGM) AND ELECTION OF DIRECTORS

The board of directors (“the Board”) would like to thank its shareholders for the feedback received at the 2018 AGM on the process of electing directors. You may recall for past AGMs, the Board put forward a slate of six directors and shareholders had the option to vote “for” or “withhold” for the group of six directors. Based on the feedback received for the 2019 election of directors, the Board will make a recommendation for the election of at least six and up to eight board members and shareholders will then have the option to vote “for” or “withhold” for each individual director (rather than voting for as a group). Please note that shareholders will be receiving the official notice of the 2019 AGM accompanied by an information circular, this summer.

DIRECTOR NOMINEES

The Board is responsible for regularly reviewing the governance needs of Sage, including evaluating the current director’s skill sets and determining if any additional skills are required to execute its mandate. As part of this review, the Board is seeking to supplement the existing complement of expertise with a new Director who has a background in one or more of the following areas: utilities, audit committee experience, and legal expertise. The Board is interested in hearing from the shareholder community with nominations of any individuals with proficiency in these areas. To be considered for inclusion in the information circular and proxy statement of Sage to be sent out in connection with the AGM, nominating shareholders must provide written notice to Sage’s Governance Director, Mr. Reginald Zotzman, at info@Sageproperties.ca or to Suite 410 – 505 8th Avenue SW, Calgary, AB, T2P 1G2 setting forth:

  1. a)  the name and contact information of the nominee;
  2. b)  the principal occupation or employment of the nominee for the last five years as well as the nominee’s qualifications to serve as a director of Sage;
  3. c)  the number of Class A Common Shares which are which are owned beneficially or over which the proposed nominee exercises direction or control; and
  4. d)  any other matter the nominating shareholder believes would be of help to the Governance Director in determining the nominee’s qualifications to serve as a director of Sage.

Sage requests that nominating shareholders provide their Notices no later than May 24, 2019, to provide the Governance Director and the Board adequate time to review all nominations and conduct requisite interviews prior to the finalization of the information circular and proxy statement in respect of the Meeting.

Sage will also accept nominations from the floor at the AGM, but strongly encourages nominations in advance so shareholders are able to properly make an informed decision.

DIRECTOR COMPENSATION

In the spring of 2017, the Board hired HR consultant, the Wynford Group (“Wynford”), to provide a market recommendation for the compensation of its directors. At this time the board approved annual retainers of $50,000/year for the Board Chair and $20,000/year for each non-employee director. At this time, the Board deferred the decision for a variable compensation component until Sage’s mandate was selected by its shareholders at the special meeting held in May 2017. Subsequent to the selection of Sage’s mandate, the Board commenced work on a variable compensation structure with the goal of aligning the board’s interests with that of its shareholders (to maximize value of Sage). In the spring of 2018, the Board re-engaged Wynford, to work with the Board and shareholder consultation committee to make a market recommendation on the variable compensation of its Board members. After receiving both Wynford’s report and feedback from the shareholder committee, the Board approved the Director Compensation policy on January 10, 2019 (see attached policy). A summary of the compensation is as follows:

  • Annual retainer of Board Chair is $25,000 and non-employee directors is $10,000;
  • Annual retainers of $5,000 per year for certain board positions (i.e. Vice Chair of the Board, Chair of the Audit Committee, Corporate Governance Directors, Compensation Directors);
  • Meeting fees ranging from $750 to $1,500 for non-management Directors, and $1,500 to $3,000 for Chair of the Board;
  • A one-time incentive bonus payable for the achievement of Sage’s mandate.

The Board believes that the approved board compensation policy is appropriate given the current market for board compensation and gives Sage the ability to attract and retain qualified board expertise.

If you have any questions or concerns, please do not hesitate to contact me. Signed “Sandra Jory”

Sandra Jory, CPA, CA Board Chair
Sage Properties Corp.