Document:

Energy Fuels Inc.: Exhibit 4.1 - Filed by newsfilecorp.com

Execution Copy 

 

 

AMENDED AND RESTATED 

  CONVERTIBLE DEBENTURE INDENTURE

DATED AS OF AUGUST 4, 2016 

AMONG 

ENERGY FUELS INC., 

BNY TRUST COMPANY OF CANADA, 
AS CANADIAN TRUSTEE 

AND 

THE BANK OF NEW YORK MELLON, 
AS U.S. TRUSTEE 

PROVIDING FOR THE ISSUE OF DEBENTURES 

 

 

CROSS-REFERENCE TABLE 

	TIA Sections 	 	Indenture Sections
    
	  	 	  
	310(a)(1) 	 	       
           15.8 
	       (a)(2) 	 	       
           15.8 
	       (a)(3) 	 	       
           15.1 
	       (a)(4) 	 	       
           N.A. 
	       (a)(5) 	 	       
           15.8 
	       (b) 	 	       
           15.3, 15.5 
	311(a) 	 	       
           15.5 
	       (b) 	 	       
           15.5 
	312(a) 	 	       
           3.5 
	       (b) 	 	       
           3.6 
	       (c) 	 	       
           3.6 
	313(a) 	 	       
           15.4 
	       (b) 	 	       
           15.4 
	       (c) 	 	       
           15.4 
	       (d) 	 	       
           15.4 
	314(a) 	 	       
           7.6, 7.8 
	       (b) 	 	       
           N.A. 
	       (c)(1) 	 	       
           1.20, 1.21 
	       (c)(2) 	 	       
           1.20, 1.21 
	       (c)(3) 	 	       
           N.A. 
	       (d) 	 	       
           N.A. 
	       (e) 	 	       
           1.21 
	315(a) 	 	       
           15.1(b), 15.2(a) 
	       (b) 	 	       
           8.2 
	       (c) 	 	       
           15.1(b) 
	       (d) 	 	       
           15.1(c), 15.2(e) 
	       (e) 	 	       
           8.14 
	316(a)(last sentence) 	 	       
           1.2 
	       (a)(1)(A) 	 	       
           8.7 
	       (a)(1)(B) 	 	       
           8.3 
	       (a)(2) 	 	       
           13.13 
	       (b) 	 	       
           8.13 
	       (c) 	 	       
           1.22 
	317(a)(1) 	 	       
           8.4 
	       (a)(2) 	 	       
           8.4 
	       (b) 	 	       
           2.4 
	318(a) 	 	       
           1.19 

N.A. means not applicable 
Note: This Cross-Reference table
shall not, for any purpose, be deemed to be part of this Indenture. 

TABLE OF CONTENTS 

	ARTICLE 1 INTERPRETATION
    	1 
	  	  	  
	       
                 1.1 	Definitions 	1 
	           
             1.2 	Meaning of “Outstanding” 	10 
	       
                 1.3 	Interpretation: 	11 
	           
             1.4 	Headings, Etc. 	11 
	       
                 1.5 	Time of Essence 	11 
	           
             1.6 	Monetary References 	12 
	       
                 1.7 	Invalidity, Etc. 	12 
	           
             1.8 	Language 	12 
	       
                 1.9 	Successors and Assigns 	12 
	           
             1.10 	Severability 	12 
	       
                 1.11 	Entire Agreement 	12 
	           
             1.12 	Benefits of Indenture 	12 
	       
                 1.13 	Applicable Law and Attornment
    	12 
	           
             1.14 	Currency of Payment 	13 
	       
                 1.15 	Non-Business Days 	13 
	           
             1.16 	Accounting Terms 	13 
	       
                 1.17 	Calculations 	13 
	           
             1.18 	Schedules 	13 
	       
                 1.19 	Incorporation by Reference of
      Trust Indenture Act 	14 
	           
             1.20 	Certificate and Opinion as to Conditions
      Precedent 	14 
	       
                 1.21 	Statements Required in
      Certificate or Opinion 	14 
	           
             1.22 	Record Dates 	15 
	  	  	  
	ARTICLE 2 THE DEBENTURES 	15 
	  	  	  
	           
             2.1 	Limit of Debentures 	15 
	       
                 2.2 	Terms of Debentures of any
      Series 	15 
	           
             2.3 	Form of Debentures 	17 
	       
                 2.4 	Paying Agent, Registrar and
      Conversion Agent 	17 
	           
             2.5 	Form and Terms of Initial Debentures 	18 
	       
                 2.6 	Certification and Delivery of
      Debentures 	27 
	           
             2.7 	Issue of Global Debentures 	28 
	       
                 2.8 	Execution of Debentures 	29 
	           
             2.9 	Certification 	30 
	       
                 2.10 	Interim Debentures or
      Certificates 	30 
	           
             2.11 	Mutilation, Loss, Theft or Destruction 	31 
	       
                 2.12 	Concerning Interest 	31 
	           
             2.13 	Debentures to Rank Pari Passu 	31 
	       
                 2.14 	Payments of Amounts Due on
      Maturity 	32 
	           
             2.15 	Payment of Interest 	32 
	       
                 2.16 	Tax Gross Up 	33 
	           
             2.17 	FATCA 	36 

(ii) 

	ARTICLE 3 REGISTRATION,
      TRANSFER, EXCHANGE AND OWNERSHIP 	36 
	  	  	  
	           
             3.1 	Definitive Debentures 	36 
	               
         3.2 	Global Debentures 	36 
	           
             3.3 	Transferee Entitled to
      Registration 	38 
	               
         3.4 	No Notice of Trusts 	39 
	           
             3.5 	Registers Open for Inspection
    	39 
	               
         3.6 	Debentureholder Communication 	39 
	           
             3.7 	Exchanges of Debentures 	39 
	               
         3.8 	Closing of Registers 	40 
	           
             3.9 	Charges for Registration,
      Transfer and Exchange 	40 
	               
         3.10 	Ownership of Debentures 	40 
	  	  	  
	ARTICLE 4 REDEMPTION AND PURCHASE OF DEBENTURES
    	41 
	  	  	  
	               
         4.1 	Applicability of Article 	41 
	           
             4.2 	Partial Redemption 	42 
	               
         4.3 	Notice of Redemption 	42 
	           
             4.4 	Debentures Due on Redemption
      Dates 	43 
	               
         4.5 	Deposit of Redemption Monies or Common Shares
    	43 
	           
             4.6 	Right to Repay Redemption Price
      in Common Shares 	44 
	               
         4.7 	Failure to Surrender Debentures Called for
      Redemption 	46 
	           
             4.8 	Cancellation of Debentures
      Redeemed 	47 
	               
         4.9 	Purchase of Debentures by the Corporation 	47 
	           
             4.10 	Right to Repay Principal Amount
      in Common Shares 	47 
	  	  	  
	ARTICLE 5 SUBORDINATION OF
      DEBENTURES 	50 
	  	  	  
	           
             5.1 	Applicability of Article 	50 
	               
         5.2 	Order of Payment 	50 
	           
             5.3 	Subrogation to Rights of
      Holders of Senior Indebtedness 	52 
	               
         5.4 	Obligation to Pay Not Impaired 	52 
	           
             5.5 	No Payment if Senior
      Indebtedness in Default 	52 
	               
         5.6 	Payment on Debentures Permitted 	53 
	           
             5.7 	Confirmation of Subordination
    	53 
	               
         5.8 	Knowledge of Trustees 	54 
	           
             5.9 	Trustees May Hold Senior
      Indebtedness 	54 
	               
         5.10 	Rights of Holders of Senior Indebtedness Not
      Impaired 	54 
	           
             5.11 	Altering the Senior
      Indebtedness 	54 
	               
         5.12 	Additional Indebtedness 	54 
	           
             5.13 	Right of Debentureholder to
      Convert Not Impaired 	54 
	               
         5.14 	Invalidated Payments 	54 
	           
             5.15 	Contesting Security 	55 
	               
         5.16 	Trustees Not Fiduciaries for Holders of Senior
      Indebtedness 	55 
	  	  	  
	ARTICLE 6 CONVERSION OF DEBENTURES 	55 
	  	  	  
	               
         6.1 	Applicability of Article 	55 
	           
             6.2 	Notice of Expiry of Conversion
      Privilege 	55 

(iii) 

	             
           6.3 	Revival of Right to Convert 	56 
	         
               6.4 	Manner of Exercise of
      Right to Convert 	56 
	               
         6.5 	Adjustment of Conversion Price 	57 
	           
             6.6 	No Requirement to Issue
      Fractional Common Shares 	63 
	               
         6.7 	Corporation to Reserve Common Shares 	63 
	           
             6.8 	Cancellation of Converted
      Debentures 	63 
	               
         6.9 	Certificate as to Adjustment 	64 
	           
             6.10 	Notice of Special Matters 	64 
	               
         6.11 	Protection of Trustees 	64 
	           
             6.12 	U.S. Securities Laws 	65 
	  	  	  
	ARTICLE 7 COVENANTS OF THE
      CORPORATION 	65 
	  	  	  
	           
             7.1 	To Pay Principal, Premium (if
      any) and Interest 	65 
	               
         7.2 	To Pay Trustees’ Remuneration 	65 
	           
             7.3 	To Give Notice of Default 	65 
	               
         7.4 	Preservation of Existence, etc. 	65 
	           
             7.5 	Keeping of Books 	66 
	               
         7.6 	Annual Certificate of Compliance; Reporting 	66 
	           
             7.7 	Performance of Covenants by
      Trustees 	66 
	               
         7.8 	SEC Reports 	66 
	           
             7.9 	No Dividends on Common Shares
      if Event of Default 	67 
	               
         7.10 	Maintain Listing 	67 
	  	  	  
	ARTICLE 8 DEFAULT 	67 
	  	  	  
	               
         8.1 	Events of Default 	67 
	           
             8.2 	Notice of Events of Default 	69 
	               
         8.3 	Waiver of Default 	69 
	           
             8.4 	Enforcement by the Trustee 	69 
	               
         8.5 	No Suits by Debentureholders 	70 
	           
             8.6 	Application of Monies by
      Trustees 	71 
	               
         8.7 	Control by Majority 	72 
	           
             8.8 	Notice of Payment by Trustees
    	72 
	               
         8.9 	Trustees May Demand Production of Debentures
	73 
	           
             8.10 	Remedies Cumulative 	73 
	               
         8.11 	Judgment Against the Corporation 	73 
	           
             8.12 	Immunity of Directors, Officers
      and Others 	73 
	               
         8.13 	Rights of Holders to Receive Payment 	73 
	           
             8.14 	Undertaking for Costs 	73 
	  	  	  
	ARTICLE 9 SATISFACTION AND
      DISCHARGE 	74 
	  	  	  
	           
             9.1 	Cancellation and Destruction
	74 
	               
         9.2 	Non-Presentation of Debentures 	74 
	           
             9.3 	Repayment of Unclaimed Monies
      or Common Shares 	74 
	               
         9.4 	Discharge 	75 
	           
             9.5 	Satisfaction 	75 
	               
         9.6 	Continuance of Rights, Duties and Obligations
    	77 

(iv) 

	ARTICLE 10 COMMON SHARE
      INTEREST PAYMENT ELECTION 	78 
	  	  	  
	           
             10.1 	Common Share Interest Payment
      Election 	78 
	  	  	  
	ARTICLE 11 SUCCESSORS 	81 
	  	  	  
	           
             11.1 	Corporation may Consolidate,
      Etc., Only on Certain Terms 	81 
	               
         11.2 	Successor Substituted 	82 
	  	  	  
	ARTICLE 12 COMPULSORY ACQUISITION 	82 
	  	  	  
	               
         12.1 	Definitions 	82 
	           
             12.2 	Offer for Debentures 	83 
	               
         12.3 	Offeror’s Notice to Dissenting Debentureholders
    	83 
	           
             12.4 	Delivery of Debenture
      Certificates 	84 
	               
         12.5 	Payment of Consideration to Trustees 	84 
	           
             12.6 	Consideration to be Held in
      Trust 	84 
	               
         12.7 	Completion of Transfer of Debentures to Offeror
    	84 
	           
             12.8 	Communication of Offer to Trust
    	85 
	  	  	  
	ARTICLE 13 MEETINGS OF
      DEBENTUREHOLDERS 	85 
	  	  	  
	           
             13.1 	Right to Convene Meeting 	85 
	               
         13.2 	Notice of Meetings 	85 
	           
             13.3 	Chairman 	87 
	               
         13.4 	Quorum 	87 
	           
             13.5 	Power to Adjourn 	87 
	               
         13.6 	Show of Hands 	88 
	           
             13.7 	Poll 	88 
	               
         13.8 	Voting 	88 
	           
             13.9 	Proxies 	88 
	               
         13.10 	Persons Entitled to Attend Meetings 	89 
	           
             13.11 	Powers Exercisable by
      Extraordinary Resolution 	89 
	               
         13.12 	Meaning of “Extraordinary Resolution” 	91 
	           
             13.13 	Amendments, Supplements and
      Waivers Requiring Consent of Each Holder 	92 
	               
         13.14 	Powers Cumulative 	92 
	           
             13.15 	Minutes 	93 
	               
         13.16 	Instruments in Writing 	93 
	           
             13.17 	Binding Effect of Resolutions
    	93 
	               
         13.18 	Evidence of Rights of Debentureholders 	93 
	           
             13.19 	Concerning Serial Meetings 	93 
	               
         13.20 	Trustees’ Rights and Obligations 	94 
	  	  	  
	ARTICLE 14 NOTICES 	94 
	  	  	  
	               
         14.1 	Notice to Corporation 	94 
	           
             14.2 	Notice to Debentureholders 	94 
	               
         14.3 	Notice to Trustees 	95 
	           
             14.4 	Mail Service Interruption 	95 

(v) 

	ARTICLE 15 CONCERNING THE TRUSTEES 	95 
	  	  	  
	               
         15.1 	General 	95 
	           
             15.2 	Certain Rights of Trustees 	96 
	               
         15.3 	Replacement of Trustees 	97 
	           
             15.4 	Reports by Trustees to Holders
    	98 
	               
         15.5 	Trustee May Deal in Debentures 	98 
	           
             15.6 	Investment of Monies Held by
      Trustees 	99 
	               
         15.7 	Trustee Not Required to Give Security 	99 
	           
             15.8 	Eligibility 	99 
	               
         15.9 	Compensation and Indemnity 	100 
	           
             15.10 	Acceptance of Trust 	100 
	               
         15.11 	Attorney-in-Fact 	100 
	           
             15.12 	Privacy Laws 	101 
	               
         15.13 	Force Majeure 	101 
	           
             15.14 	Anti-Money Laundering 	102 
	               
         15.15 	Conditions Precedent to Trustees’ Obligations
      to Act Hereunder 	102 
	  	  	  
	ARTICLE 16 SUPPLEMENTAL INDENTURES 	103 
	  	  	  
	               
         16.1 	Supplemental Indentures 	103 
	           
             16.2 	Conformity with Trust Indenture
      Act 	104 
	  	  	  
	ARTICLE 17 EXECUTION 	104 
	  	  	  
	           
             17.1 	Execution 	104 
	  	  	  
	SCHEDULE “A” 	1 
	SCHEDULE “B” 	1 
	SCHEDULE “C” 	1 
	SCHEDULE “D” 	2 
	SCHEDULE “D” 	1 
	SCHEDULE “E” 	2 
	SCHEDULE “E” 	1 
	  	  	  
	Schedule “A” - 	     Form
      of Debenture 	  
	Schedule “B” - 	     Form of Redemption
      Notice 	  
	Schedule “C” - 	     Form
      of Maturity Notice 	  
	Schedule “D” - 	     Form of Notice of
      Conversion 	  
	Schedule “E” - 	     Form
      of Put Right Exercise Notice 	  

(vi) 

THIS AMENDED AND RESTATED CONVERTIBLE DEBENTURE INDENTURE
made as of the 4th day of August, 2016. 

AMONG: 

ENERGY FUELS INC., a corporation
existing under the laws of Ontario and having its head office in Lakewood,
Colorado (hereinafter called “ENERGY FUELS” or the “Corporation”) 

BNY TRUST COMPANY OF CANADA, a
trust company having an office in the City of Toronto, in the Province of
Ontario (hereinafter called the “Canadian Trustee”) 

and 

THE BANK OF NEW YORK MELLON, a
New York banking corporation organized and existing under the laws of the State
of New York (hereinafter called the “U.S. Trustee”) 

WITNESSETH THAT: 

WHEREAS The Corporation and the Canadian Trustee are
parties to the Indenture, dated as of July 24, 2012 (the “Original Indenture”)
under which the Corporation issued $22,000,000 aggregate principal amount of
Floating Rate Convertible Unsecured Subordinated Debentures due 2017 (the
“Original Debentures”). The Corporation, the Canadian Trustee and the U.S.
Trustee, with the consent of the registered owners of the Original Debentures
given pursuant to the Original Indenture wish to amend and restate the Original
Indenture to read in its entirety as set forth in this Indenture (and to amend
and restate the Original Debentures as provided herein); and 

WHEREAS this Indenture is subject to, and shall be
governed by, the provisions of the Trust Indenture Act that are required to be a
part of and govern indentures qualified under the Trust Indenture Act (as
defined herein). 

NOW THEREFORE THIS INDENTURE WITNESSES that in
consideration of the respective covenants and agreements contained herein and
for other good and valuable consideration (the receipt and sufficiency of which
are acknowledged), the Corporation, the Canadian Trustee and the U.S. Trustee
covenant and agree, for the benefit of each other and for the equal and rateable
benefit of the holders, as follows: 

ARTICLE 1 
INTERPRETATION 

	1.1 	
      Definitions

In this Indenture and in the Debentures, unless there is
something in the subject matter or context inconsistent therewith, the
expressions following shall have the following meanings, namely: 

	 	(a) 	
      “this Indenture”, “this Convertible Debenture
      Indenture”, “hereto”, “herein”, “hereby”,
      “hereunder”, “hereof” and similar expressions refer to this
      Indenture and not to any particular Article, Section, subsection, clause,
      subdivision or other portion hereof and include any and every instrument
  supplemental or ancillary hereto;

- 2 - 

	 	(b) 	
      “Additional Amounts” has the meaning ascribed
      thereto in Section 2.17(a);

	 	 	
       

	 	(c) 	
      “Additional Debentures” means Debentures of any
      one or more series, other than the Initial Debentures, issued under this
      Indenture;

	 	 	
       

	 	(d) 	
      “Applicable Period” means any period announced by
      the Board of Directors as a period of time for which a cash dividend or
      distribution will be declared and paid by the Corporation to the holders
      of all or substantially all of the outstanding Common Shares;

	 	 	
       

	 	(e) 	
      “Applicable Rate” has the meaning ascribed thereto
      in Section 2.5(c)(ii);

	 	 	
       

	 	(f) 	
      “Applicable Securities Legislation” means
      applicable securities laws (including rules, regulations, policies and
      instruments) in each of the provinces of Canada;

	 	 	
       

	 	(g) 	
      “arm’s length person” means a Person who is an
      “affiliate” as such term is defined in the Business Corporations
      Act (Ontario);

	 	 	
       

	 	(h) 	
      “Auditors of the Corporation” means an independent
      firm of chartered accountants duly appointed as auditors of the
      Corporation;

	 	 	
       

	 	(i) 	
      “Beneficial Holder” means any Person who holds a
      beneficial interest in a Global Debenture as shown on the books of the
      Depository or a Depository Participant;

	 	 	
       

	 	(j) 	
      “Board of Directors” means the board of directors
      of the Corporation or any committee thereof;

	 	 	
       

	 	(k) 	
      “Business Day” means any day other than a
      Saturday, Sunday or any other day that the Canadian Trustee in Toronto,
      Ontario or the U.S. Trustee in New York, New York is not generally open
      for business;

	 	 	
       

	 	(l) 	
      “Canadian Taxes” has the meaning ascribed thereto
      in Section 2.17(a);

	 	 	
       

	 	(m) 	
      “Canadian Trustee” means BNY Trust Company of
      Canada, a trust company having an office in the City of Toronto, in the
      Province of Ontario, or its successor(s) or assign(s) for the time being
      as Canadian Trustee hereunder;

	 	 	
       

	 	(n) 	
      “Change of Control” means (i) any transaction
      (whether by purchase, merger or otherwise) whereby a Person or Persons
      acting jointly or in concert directly or indirectly acquires the right to
      cast, at a general meeting of shareholders of the Corporation, more than
      50% of the votes that may be ordinarily case at a general meeting; (ii)
      the amalgamation, consolidation or merger of the Corporation with or into
      any other Person or any merger of another Person into the Corporation
      unless the holders of voting securities of the Corporation immediately
      prior to such amalgamation, consolidation or merger hold securities
      representing 50% or more of the voting control or direction of the
      Corporation or the successor entity upon completion of the amalgamation,
      consolidation or merger; or (iii) any
conveyance, transfer, lease, sale or other disposition of all or
      substantially all of the Corporation’s and its Subsidiaries’ assets and
  properties, taken as a whole, to another arm’s length Person;

- 3 - 

	 	(o) 	
      “Change of Control Conversion Price” has the
      meaning ascribed thereto in Section 2.5(k)(ii);

	 	 	
       

	 	(p) 	
      “Change of Control Notice” has the meaning
      ascribed thereto in Section 2.5(k)(i);

	 	 	
       

	 	(q) 	
      “Change of Control Purchase Date” has the meaning
      ascribed thereto in Section 2.5(k)(i);

	 	 	
       

	 	(r) 	
      “Change of Control Purchase Offer” has the meaning
      ascribed thereto in Section 2.5(k)(i);

	 	 	
       

	 	(s) 	
      “Common Shares” means common shares in the capital
      of the Corporation, as such common shares are constituted on the date of
      execution and delivery of this Indenture; provided that in the event of a
      change or a subdivision, revision, reduction, combination or consolidation
      thereof, any reclassification, capital reorganization, consolidation,
      amalgamation, arrangement, merger, sale or conveyance or liquidation,
      dissolution or winding-up, or such successive changes, subdivisions,
      redivisions, reductions, combinations or consolidations,
      reclassifications, capital reorganizations, consolidations, amalgamations,
      arrangements, mergers, sales or conveyances or liquidations, dissolutions
      or windings-up, then, subject to adjustments, if any, having been made in
      accordance with the provisions of Section 6.5, “Common Shares”
      shall mean the shares or other securities or property resulting from such
      change, subdivision, redivision, reduction, combination or consolidation,
      reclassification, capital reorganization, consolidation, amalgamation,
      arrangement, merger, sale or conveyance or liquidation, dissolution or
      winding-up;

	 	 	
       

	 	(t) 	
      “Common Share Bid Request” means a request for
      bids to purchase Common Shares (to be issued by the Corporation on the
      Common Share Delivery Date) made by the Trustees in accordance with the
      Common Share Interest Payment Election Notice and which shall make the
      acceptance of any bid conditional upon the acceptance of sufficient bids
      to result in aggregate proceeds from such issue and sale of Common Shares
      which, together with the cash payments by the Corporation in lieu of
      fractional Common Shares, if any, equal the Interest Obligation;

	 	 	
       

	 	(u) 	
      “Common Share Delivery Date” means a date, not
      more than 90 days and not less than five Business Days prior to the
      applicable Interest Payment Date, upon which Common Shares are issued by
      the Corporation and delivered to the Trustees for sale pursuant to Common
      Share Purchase Agreements;

	 	 	
       

	 	(v) 	
      “Common Share Interest Payment Election” means an
      election to satisfy an Interest Obligation on the applicable Interest
      Payment Date in the manner described in the Common Share Interest Payment
      Election Notice;

- 4 - 

	 	(w) 	
      “Common Share Interest Payment Election Amount”
      means the sum of the amount of the aggregate proceeds resulting from the
      sale of Common Shares on the Common Share Delivery Date pursuant to
      acceptable bids obtained pursuant to the Common Share Bid Requests,
      together with any amount paid by the Corporation in respect of fractional
      Common Shares pursuant to Section 10.1(g), that is equal to the aggregate
      amount of the Interest Obligation in respect of which the Common Share
      Interest Payment Election Notice was delivered;

	 	 	
       

	 	(x) 	
      “Common Share Interest Payment Election Notice”
      means a written notice made by the Corporation to the Trustees
      specifying:

	 	(i) 	
      the Interest Obligation to which the election
    relates;

	 	 	
       

	 	(ii) 	
      the Common Share Interest Payment Election
  Amount;

	 	 	
       

	 	(iii) 	
      the investment banks, brokers or dealers through which
      the Trustees shall seek bids to purchase the Common Shares and the
      conditions of such bids, which may include the minimum number of Common
      Shares, minimum price per Common Share, timing for closing for bids and
      such other matters as the Corporation may specify; and

	 	 	
       

	 	(iv) 	
      that the Trustees shall accept through the investment
      banks, brokers or dealers selected by the Corporation only those bids
      which comply with such notice;

	 	(y) 	
      “Common Share Proceeds Investment” has the meaning
      attributed thereto in Section 10.1(h);

	 	 	
       

	 	(z) 	
      “Common Share Purchase Agreement” means an
      agreement in customary form among the Corporation, the Trustees and the
      Persons making acceptable bids pursuant to a Common Share Bid Request,
      which complies with all applicable laws, including the U.S. Securities
      Laws, Applicable Securities Legislation and the rules and regulations of
      any stock exchange on which the Debentures or Common Shares are then
      listed;

	 	 	
       

	 	(aa) 	
      “Common Share Redemption Right” has the meaning
      attributed thereto in Section 4.6(a);

	 	 	
       

	 	(bb) 	
      “Common Share Repayment Right” has the meaning
      attributed thereto in Section 4.10(a);

	 	 	
       

	 	(cc) 	
      “Conversion Price” means the dollar amount for
      which each Common Share may be issued from time to time upon the
      conversion of Debentures or any series of Debentures which are by their
      terms convertible in accordance with the provisions of Article
6;

	 	 	
       

	 	(dd) 	
      “Counsel” means a barrister or solicitor or firm
      of barristers or solicitors retained or employed by the Trustees or
      retained or employed by the Corporation and reasonably acceptable to the
      Trustees;

- 5 - 

	 	(ee) 	
      “Current Market Price” means, generally, the
      volume weighted average trading price of the Common Shares on the Toronto
      Stock Exchange, if the Common Shares are listed on the Toronto Stock
      Exchange, for the 20 consecutive trading days ending on the fifth trading
      day preceding the applicable date. If the Common Shares are not listed on
      the Toronto Stock Exchange, reference shall be made for the purpose of the
      above calculation to the principal securities exchange or market on which
      the Common Shares are listed or quoted, or if no such prices are available
      “Current Market Price” shall be the fair value of a Common Share as
      reasonably determined by the Board of Directors;

	 	 	
       

	 	(ff) 	
      “Date of Conversion” has the meaning ascribed
      thereto in Section 6.4(b);

	 	 	
       

	 	(gg) 	
      “Debenture Liabilities” has the meaning ascribed
      thereto in Section 5.1;

	 	 	
       

	 	(hh) 	
      “Debentureholders” or “holders” means the
      Persons for the time being entered in the register for Debentures as
      registered holders of Debentures or any transferees of such Persons by
      endorsement or delivery;

	 	 	
       

	 	(ii) 	
      “Debentures” means the debentures, notes or other
      evidence of indebtedness of the Corporation issued and certified
      hereunder, or deemed to be issued and certified hereunder, including,
      without limitation, the Initial Debentures, and for the time being
      outstanding, whether in definitive or interim form;

	 	 	
       

	 	(jj) 	
      “Defeased Debentures” has the meaning ascribed
      thereto in Section 9.6(b);

	 	 	
       

	 	(kk) 	
      “Definitive Debenture” means a certificated
      Debenture fully registered in the name of the holder thereof;

	 	 	
       

	 	(ll) 	
      “Depository” means, with respect to the Debentures
      of any series, the Person designated as depository by the Corporation
      pursuant to Section 2.2(m) and, in the case of the Initial Debentures, the
      Depository shall initially be the CDS Clearing and Depository Services
      Inc. (“CDS”);

	 	 	
       

	 	(mm) 	
      “Depository Participant” means a broker, dealer,
      bank, other financial institution or other Person for whom, from time to
      time, a Depository effects book entry for a Global Debenture deposited
      with the Depository;

	 	 	
       

	 	(nn) 	
      “Energy Fuels” or the “Corporation” means
      Energy Fuels Inc. and includes any successor to or of Energy Fuels which
      shall have complied with the provisions of Article 11;

	 	 	
       

	 	(oo) 	
      “Event of Default” has the meaning ascribed
      thereto in Section 8.1;

	 	 	
       

	 	(pp) 	
      “Excluded Holder” has the meaning ascribed thereto
      in Section 2.17(a);

	 	 	
       

	 	(qq) 	
      “Extraordinary Resolution” has the meaning
      ascribed thereto in Section 13.12;

	 	 	
       

	 	(rr) 	
      “Freely Tradeable” means, in respect of shares of
      capital of any class of any corporation, shares which: (i) are issuable
      without the necessity of filing a prospectus or any other similar offering
      document (other than such prospectus or similar offering document that has already been filed)
      under Applicable Securities Legislation and such issue does not constitute
      a distribution (other than a distribution already qualified by prospectus
      or similar offering document) under Applicable Securities Legislation; and
      (ii) can be traded by the holder thereof without any restriction under
      Applicable Securities Legislation, such as hold periods, except in the
      case of a control distribution (as defined in National Instrument 45-102 –
      “Resale of Securities” of the Canadian Securities Administrators), or a
      transaction or series of transaction incidental to a control
  distribution;

- 6 - 

	 	(ss) 	
      “generally accepted accounting principles” or
      “GAAP” means generally accepted accounting principles from time to
      time approved by the Canadian Institute of Chartered Accountants
      (including as further described in Section 1.16);

	 	 	
       

	 	(tt) 	
      “Global Debenture” means a Debenture that is
      issued to and registered in the name of the Depository, or its nominee,
      pursuant to Section 2.7 for purposes of being held by or on behalf of the
      Depository as custodian for participants in the Depository’s book-entry
      only registration system;

	 	 	
       

	 	(uu) 	
      “Global Debenture Legend” means the legend
      identified as such in Schedule “A”;

	 	 	
       

	 	(vv) 	
      “Government Obligations” means securities issued
      or guaranteed by the Government of Canada or any province
  thereof;

	 	 	
       

	 	(ww) 	
      “Guarantees” means any guarantee, undertaking to
      assume, endorse, contingently agree to purchase, or to provide funds for
      the payment of, or otherwise become liable in respect of, any
      indebtedness, liability or obligation of any Person;

	 	 	
       

	 	(xx) 	
      “Holders’ Request” means an instrument signed in
      one or more counterparts by holders of not less than 25% of the aggregate
      principal amount of all outstanding Debentures requesting or directing the
      Trustees to take or refrain from taking the action or proceeding specified
      therein;

	 	 	
       

	 	(yy) 	
      “IFRS” means International Financial Reporting
      Standards;

	 	 	
       

	 	(zz) 	
      “Indenture” means this instrument as originally
      executed or as it may from time to time be supplemented or amended by one
      or more indentures supplemental hereto entered into pursuant to the
      applicable provisions hereof, including, for all purposes of this
      instrument and any such supplemental indenture, the provisions of the
      Trust Indenture Act that are deemed to be a part of and govern this
      instrument and any such supplemental indenture, respectively;

	 	 	
       

	 	(aaa) 	
      “Initial Debentures” means the Original
      Debentures, as amended and restated pursuant to this Indenture, designated
      as “Floating Rate Convertible Unsecured Subordinated Debentures” and
      described in Section 2.5;

	 	 	
       

	 	(bbb) 	
      “Interest Account” has the meaning ascribed
      thereto in Section 10.1(h);

- 7 - 

		(ccc) 	
      “Interest Obligation” means the obligation of the
      Corporation to pay interest on the Debentures, as and when the same
      becomes due; 

	 	  	
       

		(ddd) 	
      “Interest Payment Date” means a date specified in
      a Debenture as the date on which interest on such Debenture shall become
      due and payable; 

	 	  	
       

	 	(eee) 	
      “Interest Period” means the period commencing on
      the date of issue of the Initial Debentures to but excluding the first
      Interest Payment Date and thereafter the period from and including an
      Interest Payment Date to and excluding the next Interest Payment Date;
    

	 	  	
       

	 	(fff) 	
      “Maturity Account” means an account or accounts
      required to be established by the Corporation (and which shall be
      maintained by and subject to the control of the Trustees) for each series
      of Debentures issued pursuant to and in accordance with this Indenture;
      

	 	  	
       

	 	(ggg) 	
      “Maturity Date” means the date specified for
      maturity of any Debentures; 

	 	  	
       

	 	(hhh) 	
      “Maturity Notice” has the meaning ascribed thereto
      in Section 2.5(h); 

	 	  	
       

		(iii) 	
      “MI 62-104” means Multilateral Instrument 62-104 –
      Take-Over Bids and Issuer Bids of the Canadian Securities Administrators;
      

	 	  	
       

	 	(jjj) 	
      “Offer Price” has the meaning ascribed thereto in
      Section 2.5(k)(i); 

	 	  	
       

	 	(kkk) 	
      “Offeror’s Notice” has the meaning ascribed
      thereto in Section 12.3; 

	 	  	
       

		(lll) 	
      “Officers’ Certificate” means a certificate of the
      Corporation signed by any two authorized officers or directors of the
      Corporation, in their capacities as officers or directors of the
      Corporation, and not in their personal capacities; 

	 	  	
       

	 	(mmm)	
      “Payor” has the meaning ascribed thereto
      in Section 2.17(a); 

	 	  	
       

	 	(nnn) 	
      “Periodic Offering” means an offering of
      Debentures of a series from time to time, the specific terms of which
      Debentures, including, without limitation, the rate or rates of interest,
      if any, thereon, the stated maturity or maturities thereof and the
      redemption provisions, if any, with respect thereto, are to be determined
      by the Corporation upon the issuance of such Debentures from time to time;
      

	 	  	
       

	 	(ooo) 	
      “Person” includes an individual, corporation,
      company, partnership, joint venture, association, trust, trustee,
      unincorporated organization or government or any agency or political
      subdivision thereof (and for the purposes of the definition of “Change of
      Control”, in addition to the foregoing, “Person” shall include any
      syndicate or group that would be deemed to be a “Person” under MI
      62-104); 

	 	  	
       

	 	(ppp) 	
      “Put Date” shall mean June 30, 2017; 

	 	  	
       

	 	(qqq) 	
      “Put Price” has the meaning ascribed thereto in
      Section 2.5(l)(i) hereof; 

	 	  	
       

	 	(rrr) 	
      “Put Right” has the meaning ascribed thereto in
      Section 2.5(l)(i) hereof; 

- 8 - 

	 	(sss) 	
      “Total Put Price” has the meaning ascribed thereto
      in Section 2.5(l)(i) hereof

	 	 	
       

	 	(ttt) 	
      “Redemption Date” has the meaning ascribed thereto
      in Section 4.3;

	 	 	
       

	 	(uuu) 	
      “Redemption Notice” has the meaning ascribed
      thereto in Section 4.3;

	 	 	
       

	 	(vvv) 	
      “Redemption Price” means, in respect of a
      Debenture, the amount payable on the Redemption Date, which amount may be
      payable by the issuance of Freely Tradeable Common Shares as provided for
      in Section 4.6;

	 	 	
       

	 	(www) 	
      “SEC” means the United States Securities and
      Exchange Commission;

	 	 	
       

	 	(xxx) 	
      “Senior Creditor” means a holder or holders of
      Senior Indebtedness and includes any representative or representatives,
      agent or agents or trustee or trustees of any such holder or
    holders;

	 	 	
       

	 	(yyy) 	
      “Senior Indebtedness” means all obligations,
      liabilities and indebtedness of the Corporation and its Subsidiaries,
      whether outstanding on the date of this Indenture or thereafter created,
      incurred, assumed or guaranteed which would, in accordance with IFRS, be
      classified upon a consolidated statement of financial position of the
      Corporation as liabilities of the Corporation and its Subsidiaries and,
      whether or not so classified, includes (without duplication): (a)
      indebtedness of the Corporation or its Subsidiaries for borrowed money;
      (b) obligations of the Corporation or its Subsidiaries evidenced by bonds,
      debentures, commercial paper, notes or other similar instruments; (c)
      obligations of the Corporation or its Subsidiaries arising pursuant or in
      relation to bankers’ acceptances, letters of credit and letters of
      guarantee, financial leases, performance bonds and surety bonds (including
      payment and reimbursement obligations in respect thereof) or indemnities
      issued in connection therewith; (d) obligations of the Corporation or its
      Subsidiaries under any swap, hedging or other similar contracts or
      arrangements; (e) obligations of the Corporation or its Subsidiaries under
      Guarantees, indemnities, assurances, legally binding comfort letters or
      other contingent obligations relating to the Senior Indebtedness or other
      obligations of any other Person which would otherwise constitute Senior
      Indebtedness within the meaning of this definition; (f) all indebtedness
      of the Corporation or its Subsidiaries representing the deferred purchase
      price of any property or assets including, without limitation, purchase
      money mortgages; (g) indebtedness to trade creditors; (h) all renewals,
      extensions, restructurings, refundings and refinancings of any of the
      foregoing; (i) all accrued and unpaid interest, fees and other amounts in
      respect of any of the foregoing; and (j) all costs and expenses incurred
      by or on behalf of any Senior Creditor in enforcing payment or collection
      of any such Senior Indebtedness, including enforcing any security interest
      securing the same, provided that “Senior Indebtedness” shall not
      include any indebtedness that would otherwise be Senior Indebtedness if it
      is expressly stated to be subordinate to or rank pari passu with
      the Debentures;

	 	 	
       

	 	(zzz) 	
      “Senior Security” means all mortgages, liens,
      pledges, charges (whether fixed or floating), security interests,
      hypothecs or other encumbrances of any kind, contingent or absolute, held
      by or on behalf of any Senior Creditor and in
any manner securing any Senior Indebtedness. Solely for the
      purposes of determining whether a Senior Security exists for the purposes
      of this Indenture, a Person shall be deemed to be the owner of any
      property which it has acquired or holds subject to a conditional sale or
      capital lease or other title retention agreement and any lease in the
      nature thereof (excluding, for the avoidance of doubt, operating leases)
      and such retention of title by another Person shall constitute a Senior
  Security;

- 9 - 

	 	(aaaa) 	
      “Serial Meeting” has the meaning ascribed thereto
      in Section 13.2(b)(i);

	 	 	
       

	 	(bbbb) 	
      “Subsidiary” has the meaning ascribed thereto in
      the Securities Act (Ontario);

	 	 	
       

	 	(cccc) 	
      “Tax Act” means the Income Tax Act
      (Canada), and the regulations thereunder as amended from time to
      time;

	 	 	
       

	 	(dddd) 	
      “Tax Proceedings” has the meaning ascribed thereto
      in Section 2.17(f);

	 	 	
       

	 	(eeee) 	
      “Time of Expiry” means the time of expiry of
      certain rights with respect to the conversion of Debentures under Article
      6 or under Section 2.5(g) with respect to the Initial Debentures which is
      to be set forth separately in the form and terms for each series of
      Debentures which by their terms are to be convertible;

	 	 	
       

	 	(ffff) 	
      “Total Offer Price” has the meaning ascribed
      thereto in Section 2.5(k)(i);

	 	 	
       

	 	(gggg) 	
      “trading day” means, with respect to the Toronto
      Stock Exchange or other market for securities, any day on which such
      exchange or market is open for trading or quotation;

	 	 	
       

	 	(hhhh) 	
      “Trust Indenture Act” means the United States
      Trust Indenture Act of 1939, as amended;

	 	 	
       

	 	(iiii) 	
      “Trustee” or “Trustees” means the party or
      parties named as the Canadian Trustee and the U.S. Trustee in this
      Indenture until a successor or assign to either or both of such Trustees
      shall have become such pursuant to the applicable provisions of this
      Indenture, and, thereafter, means each such successor or assign Trustee
      hereunder and, unless the context otherwise requires, a reference to “a
      Trustee” or “the Trustee” means either of the Trustees;

	 	 	
       

	 	(jjjj) 	
      “United States” or “U.S.” means the United
      States of America, its territories and possessions, any state of the
      United States and the District of Columbia;

	 	 	
       

	 	(kkkk) 	
      “U.S. Securities Laws” means all applicable
      securities legislation in the United States, including, without
      limitation, the 1934 Act and the rules and regulations promulgated
      thereunder, the 1933 Act and the rules and regulations promulgated
      thereunder and any applicable state securities laws;

	 	 	
       

	 	(llll) 	
      “U.S. Trustee” means The Bank of New York Mellon,
      a New York banking corporation organized and existing under the laws of
      the State of New York, or its successor(s) or assign(s) for the time being
      as U.S. Trustee hereunder;

- 10 - 

	 	(mmmm) 	
      “UxC U308 Weekly Indicator Price” refers to the Ux
      Weekly Indicator (Spot Price) published by the Ux Consulting Company, LLC;
      

	 	  	
       

		(nnnn) 	
      “VWAP” means for the Common Shares the per Common
      Share volume- weighted average price on the Toronto Stock Exchange (or if
      the Common Shares are no longer traded on the Toronto Stock Exchange, on
      such other exchange as the Common Shares are then traded) in respect of
      the period from the scheduled open of trading until the scheduled close of
      trading of the primary trading session on such trading day. In each case,
      the “VWAP” will be determined without regard to after hours trading or any
      other trading outside of the primary trading session; 

	 	  	
       

		(oooo) 	
      “Written Direction of the Corporation” means an
      instrument in writing signed by any one officer or director of the
      Corporation; 

	 	  	
       

	 	(pppp) 	
      “1933 Act” means the United States Securities Act
      of 1933, as amended; 

	 	  	
       

		(qqqq) 	
      “1934 Act” means the United States Securities
      Exchange Act of 1934, as amended; and 

	 	  	
       

	 	(rrrr) 	
      “90% Redemption Right” has the meaning ascribed
      thereto in Section 2(k)(iii). 

All other terms used in this Indenture that are defined by the
Trust Indenture Act or defined by Trust Indenture Act reference to another
statute and that are not otherwise defined herein have the meanings assigned to
them by such definitions. 

	1.2 	
      Meaning of
“Outstanding”

Every Debenture certified and delivered by the Trustees
hereunder shall be deemed to be outstanding until it is cancelled, converted or
redeemed or delivered to the Trustees for cancellation, conversion or redemption
or monies and/or Common Shares, as the case may be, for the payment thereof
shall have been set aside under Section 9.2, provided that: 

	 	(a) 	
      Debentures which have been partially redeemed, purchased
      or converted shall be deemed to be outstanding only to the extent of the
      unredeemed, unpurchased or unconverted part of the principal amount
      thereof;

	 	 	 
	 	(b) 	
      when a new Debenture has been issued in substitution for
      a Debenture which has been lost, stolen or destroyed, only one of such
      Debentures shall be counted for the purpose of determining the aggregate
      principal amount of Debentures outstanding; and

	 	 	 
	 	(c) 	
      for the purposes of any provision of this Indenture
      entitling holders of outstanding Debentures to vote, sign consents,
      requisitions or other instruments or take any other action under this
      Indenture, or to constitute a quorum of any meeting of Debentureholders,
      Debentures owned directly or indirectly, legally or equitably, by the
      Corporation or any of its affiliates shall be disregarded except
    that:

	 	(i) 	
      for the purpose of determining whether the Trustees shall
      be protected in relying on any such vote, consent, requisition or other
      instrument or action, or on the holders of Debentures present or
      represented at any meeting of Debentureholders, only the Debentures which the Trustees
  knows are so owned shall be so disregarded; and

- 11 - 

	 	(ii) 	
      Debentures so owned which have been pledged in good faith
      other than to the Corporation or any of its affiliates shall not be so
      disregarded if the pledgee shall establish to the satisfaction of the
      Trustees the pledgee’s right to vote such Debentures, sign consents,
      requisitions or other instruments or take such other actions in his
      discretion free from the control of the Corporation or any of its
      affiliates.

	1.3 	
      Interpretation:

In this Indenture: 

	 	(a) 	
      words importing the singular number or masculine gender
      shall include the plural number or the feminine or neuter genders, and
      vice versa;

	 	 	 
	 	(b) 	
      all references to Articles and Schedules refer, unless
      otherwise specified, to articles of and schedules to this
  Indenture;

	 	 	 
	 	(c) 	
      all references to Sections refer, unless otherwise
      specified, to Sections, subsections or clauses of this
Indenture;

	 	 	 
	 	(d) 	
      words and terms denoting inclusiveness (such as “include”
      or “includes” or “including”), whether or not so stated, are not limited
      by and do not imply limitation of their context or the words or phrases
      which precede or succeed them;

	 	 	 
	 	(e) 	
      reference to any agreement or other instrument in writing
      means such agreement or other instrument in writing as amended, modified,
      replaced or supplemented from time to time;

	 	 	 
	 	(f) 	
      unless otherwise indicated, reference to a statute shall
      be deemed to be a reference to such statute as amended, re-enacted or
      replaced from time to time; and

	 	 	 
	 	(g) 	
      unless otherwise indicated, time periods within which a
      payment is to be made or any other action is to be taken hereunder shall
      be calculated by including the day on which the period commences and
      excluding the day on which the period ends.

	1.4 	
      Headings, Etc.

The division of this Indenture into Articles and Sections, the
provision of a Table of Contents and the insertion of headings are for
convenience of reference only and shall not affect the construction or
interpretation of this Indenture or of the Debentures. 

	1.5 	
      Time of Essence

Time shall be of the essence of this Indenture. 

- 12 - 

	1.6 	
      Monetary References

Whenever any amounts of money are referred to herein, such
amounts shall be deemed to be in lawful money of Canada unless otherwise
expressed. 

	1.7 	
      Invalidity, Etc.

Any provision hereof which is prohibited or unenforceable shall
be ineffective only to the extent of such prohibition or unenforceability,
without invalidating the remaining provisions hereof. 

	1.8 	
      Language

Each of the parties hereto hereby acknowledges that it has
consented to and requested that this Indenture and all documents relating
thereto, including the form of Debenture attached hereto as Schedule “A”, be
drawn up in the English language only. 

	1.9 	
      Successors and
Assigns

All covenants and agreements of the Corporation in this
Indenture and the Debentures shall bind its successors and assigns, whether so
expressed or not. All covenants and agreements of the Trustees in this Indenture
shall bind their respective successors. 

	1.10 	
      Severability

In case any provision in this Indenture or in the Debentures
shall be invalid, illegal or unenforceable, such provision shall be deemed to be
severed herefrom or therefrom and the validity, legality and enforceability of
the remaining provisions shall not in any way be affected, prejudiced or
impaired thereby. 

	1.11 	
      Entire Agreement

This Indenture and all supplemental indentures and Schedules
hereto and thereto, and the Debentures issued hereunder and thereunder, together
constitute the entire agreement between the parties hereto with respect to the
indebtedness created hereunder and thereunder and under the Debentures and
supersedes as of the date hereof all prior memoranda, agreements, negotiations,
discussions and term sheets (including the Original Indenture), whether oral or
written, with respect to the indebtedness created hereunder or thereunder and
under the Debentures. 

	1.12 	
      Benefits of
Indenture

Nothing in this Indenture or in the Debentures, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, any paying agent, the holders of Debentures, the Senior
Creditors (to the extent provided in Article 5 only), and (to the extent
provided in Section 8.12) the holders of Common Shares, any benefit or any legal
or equitable right, remedy or claim under this Indenture. 

	1.13 	
      Applicable Law and
  Attornment

This Indenture, any supplemental indenture and the Debentures
shall be governed by and interpreted in accordance with the laws of the Province
of Ontario and the federal laws of Canada applicable therein and shall be treated in all respects as
Ontario contracts; provided that the immunities, protections, indemnities and
standards of care of the U.S. Trustee in connection with its administration of
this Indenture and with the Debentures shall be governed by and construed in
accordance with the laws of the State of New York. With respect to any suit,
action or proceedings relating to this Indenture, any supplemental indenture or
any Debenture, the Corporation, the Trustees and each holder irrevocably submit
and attorn to the non-exclusive jurisdiction of the courts of the Province of
Ontario. The parties hereto hereby waive any right they may have to require a
trial by jury of any proceeding commenced in connection herewith. 

- 13 - 

	1.14 	
      Currency of Payment

Unless otherwise indicated in a supplemental indenture with
respect to any particular series of Debentures, all payments to be made under
this Indenture or a supplemental indenture shall be made in Canadian dollars.

	1.15 	
      Non-Business Days

Whenever any payment to be made hereunder shall be due, any
period of time would begin or end, any calculation is to be made or any other
action is to be taken on, or as of, or from a period ending on, a day other than
a Business Day, such payment shall be made, such period of time shall begin or
end, such calculation shall be made and such other action shall be taken, as the
case may be, unless otherwise specifically provided herein, on or as of the next
succeeding Business Day without any additional interest, cost or charge to the
Corporation. 

	1.16 	
      Accounting Terms

Except as hereinafter provided or as otherwise indicated in
this Indenture, all calculations required or permitted to be made hereunder
pursuant to the terms of this Indenture shall be made in accordance with GAAP.
For greater certainty, GAAP shall include any accounting standards, including
IFRS, that may from time to time be approved for general application by the
Canadian Institute of Chartered Accountants. 

	1.17 	
      Calculations

The Corporation shall be responsible for making all
calculations called for hereunder including, without limitation, calculations of
Current Market Price. The Corporation shall make such calculations in good faith
and, absent manifest error, the Corporation’s calculations shall be final and
binding on holders and the Trustees. The Corporation will provide a schedule of
its calculations to the Trustees and the Trustees shall be entitled to rely
conclusively on the accuracy of such calculations without independent
verification. 

	1.18 	
      Schedules

The following Schedules are incorporated into and form part of
this Indenture: 

	Schedule “A” - 	Form of Debenture 
	Schedule “B” - 	Form of Redemption Notice 
	Schedule “C” - 	Form of Maturity Notice 
	Schedule “D” - 	Form of Notice of Conversion

- 14 - 

In the event of any inconsistency between the provisions of any
Section of this Indenture and the provisions of the Schedules which form a part
hereof, the provisions of this Indenture shall prevail to the extent of the
inconsistency. 

	1.19 	
      Incorporation by Reference of Trust Indenture
      Act

If any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by any of Sections 310 to 317 of the Trust
Indenture Act through operation of Section 318(c) thereof on any Person, the
duties so imposed by the Trust Indenture Act shall control. For purposes of this
Indenture, “obligor” of the Debentures means the Corporation and any other
obligor of the Debentures. All other Trust Indenture Act terms used in this
Indenture that are defined by the Trust Indenture Act, defined in the Trust
Indenture Act by reference to another statute or defined by rules or regulations
of the SEC have the meanings assigned to them by such definitions. 

	1.20 	
      Certificate and Opinion as to Conditions
      Precedent

Upon any request or application by the Corporation to the
Trustees to take any action under this Indenture, the Corporation shall furnish
to the Trustees: 

(i)     an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and 

(ii)     an opinion
of Counsel stating that all such conditions precedent have been complied with.

Any Officers’ Certificate may be based, insofar as it relates
to legal matters, upon an opinion of Counsel, unless the officer signing such
certificate knows, or in the exercise of reasonable care should know, that such
opinion of Counsel with respect to the matters upon which such Officers’
Certificate is based are erroneous. Any opinion of Counsel may be based and may
state that it is so based, insofar as it relates to factual matters, upon an
Officers’ Certificate stating that the information with respect to such factual
matters is in the possession of the Corporation, unless the counsel signing such
opinion of Counsel knows, or in the exercise of reasonable care should know,
that the Officers’ Certificate with respect to the matters upon which such
opinion of Counsel is based are erroneous. 

	1.21 	
      Statements Required in Certificate or
      Opinion

Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture must include: 

	 	(i) 	
      a statement that each person signing the certificate or
      opinion has read the covenant or condition and the related
    definitions;

	 	 	 
	 	(ii) 	
      a brief statement as to the nature and scope of the
      examination or investigation upon which the statement or opinion contained
      in the certificate or opinion is based;

- 15 - 

	 	(iii) 	
      a statement that, in the opinion of each such person,
      that person has made such examination or investigation as is necessary to
      enable the person to express an informed opinion as to whether or not such
      covenant or condition has been complied with; and

	 	 	 
	 	(iv) 	
      a statement as to whether or not, in the opinion of each
      such person, such condition or covenant has been complied
  with.

	1.22 	
      Record Dates

If the Corporation shall solicit from the holders any request,
demand, authorization, direction, notice, consent, waiver or other action, the
Corporation may, at its option, by or pursuant to a certified resolution, fix in
advance a record date, which need not be the date provided in Section 316(c) of
the Trust Indenture Act to the extent it would otherwise be applicable, for the
determination of such holders entitled to provide such request, demand,
authorization, direction, notice, consent, waiver or other action, but the
Corporation shall have no obligation to do so. Any such record date shall be the
record date specified in or pursuant to such certified resolution. 

If such a record date is fixed, such request, demand,
authorization, direction, notice, consent, waiver or other action may be given
before or after such record date, but only the holders of record at the close of
business on such record date shall be deemed to be holders for the purposes of
determining whether holders of the requisite proportion of Debentures then
outstanding have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other act, and for this
purpose the Debentures then outstanding shall be computed as of such record
date. 

ARTICLE 2 
THE DEBENTURES 

	2.1 	
      Limit of Debentures

Subject to the limitation in respect of the Initial Debentures
set out in Section 2.5(a), the aggregate principal amount of Debentures
authorized to be issued under this Indenture is unlimited, but Debentures may be
issued only upon and subject to the conditions and limitations herein set forth.

	2.2 	
      Terms of Debentures of any
  Series

The Debentures may be issued in one or more series. There shall
be established herein or in or pursuant to one or more indentures supplemental
hereto, prior to the initial issuance of Debentures of any particular series:

	 	(a) 	
      the designation of the Debentures of the series (which
      need not include the term “Debentures”), which shall distinguish the
      Debentures of the series from the Debentures of all other
series;

	 	 	 
	 	(b) 	
      any limit upon the aggregate principal amount of the
      Debentures of the series that may be certified and delivered under this
      Indenture (except for Debentures certified and delivered upon registration
      of, transfer of, amendment of, or in exchange for, or in lieu of, other Debentures of the
      series pursuant to Sections 2.10, 3.2, 3.3, 3.6, Article 4 and Article
  6);

- 16 - 

	 	(c) 	
      the date or dates on which the principal of the
      Debentures of the series is payable;

	 	 	
       

	 	(d) 	
      the rate or rates at which the Debentures of the series
      shall bear interest, if any, the date or dates from which such interest
      shall accrue, on which such interest shall be payable and on which record
      date, if any, shall be taken for the determination of holders to whom such
      interest shall be payable and/or the method or methods by which such rate
      or rates or date or dates shall be determined;

	 	 	
       

	 	(e) 	
      the place or places where the principal of and any
      interest on Debentures of the series shall be payable or where any
      Debentures of the series may be surrendered for registration of transfer
      or exchange;

	 	 	
       

	 	(f) 	
      the right, if any, of the Corporation to redeem
      Debentures of the series, in whole or in part, at its option and the
      period or periods within which, the price or prices at which and any terms
      and conditions upon which, Debentures of the series may be so
    redeemed;

	 	 	
       

	 	(g) 	
      the obligation, if any, of the Corporation to redeem,
      purchase or repay Debentures of the series pursuant to any mandatory
      redemption, sinking fund or analogous provisions or at the option of a
      holder thereof and the price or prices at which, the period or periods
      within which, the date or dates on which, and any terms and conditions
      upon which, Debentures of the series shall be redeemed, purchased or
      repaid, in whole or in part, pursuant to such obligations;

	 	 	
       

	 	(h) 	
      if other than denominations of $1,000 and any integral
      multiple thereof, the denominations in which Debentures of the series
      shall be issuable;

	 	 	
       

	 	(i) 	
      subject to the provisions of this Indenture, any
      trustees, Depositories, authenticating or paying agents, transfer agents
      or registrars or any other agents with respect to the Debentures of the
      series;

	 	 	
       

	 	(j) 	
      any other events of default or covenants with respect to
      the Debentures of the series;

	 	 	
       

	 	(k) 	
      whether and under what circumstances the Debentures of
      the series will be convertible into or exchangeable for securities of any
      Person;

	 	 	
       

	 	(l) 	
      the form and terms of the Debentures of the
  series;

	 	 	
       

	 	(m) 	
      if applicable, that the Debentures of the series shall be
      issuable in whole or in part as one or more Global Debentures and, in such
      case, the Depository or Depositories for such Global Debentures in whose
      name the Global Debentures will be registered, and any circumstances other
      than or in addition to those set forth in Section 3.2 or those applicable
      with respect to any specific series of Debentures, as the case may be, in
      which any such Global Debenture may be exchanged for Definitive
      Debentures, or transferred to and registered in the
name of a Person other than the Depository for such Global
  Debentures or a nominee thereof;

- 17 - 

	 	(n) 	
      applicable restrictions on transfer, conversion and
      exchange pursuant to and in accordance with the requirements of Applicable
      Securities Legislation, U.S. Securities Laws and other applicable
      securities laws;

	 	 	 
	 	(o) 	
      if other than Canadian currency, the currency in which
      the Debentures of the series are issuable; and

	 	 	 
	 	(p) 	
      any other terms of the Debentures of the series (which
      terms shall not be inconsistent with the provisions of this
    Indenture).

All Debentures of any one series shall be substantially
identical, except as may otherwise be established herein or by or pursuant to a
resolution of the Board of Directors, Officers’ Certificate or in an indenture
supplemental hereto. All Debentures of any one series need not be issued at the
same time and may be issued from time to time, including pursuant to a Periodic
Offering, consistent with the terms of this Indenture, if so provided herein, by
or pursuant to such resolution of the Board of Directors, Officers’ Certificate
or in an indenture supplemental hereto. 

	2.3 	
      Form of Debentures

Except in respect of the Initial Debentures, the form of which
is provided for herein, the Debentures of each series shall be substantially in
such form or forms (not inconsistent with this Indenture) as shall be
established herein or by or pursuant to one or more resolutions of the Board of
Directors (or to the extent established pursuant to, rather than set forth in, a
resolution of the Board of Directors, in an Officers’ Certificate detailing such
establishment) or in one or more indentures supplemental hereto, in each case
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have imprinted or
otherwise reproduced thereon such legend or legends or endorsements, not
inconsistent with the provisions of this Indenture, as may be required to comply
with any law or with any rules or regulations pursuant thereto or with any rules
or regulations of any securities exchange or securities regulatory authority or
to conform to general usage, all as may be determined by the directors or
officers of the Corporation executing such Debentures on behalf of the
Corporation, as conclusively evidenced by their execution of such Debentures.

	2.4 	
      Paying Agent, Registrar and Conversion
      Agent

The Corporation may appoint one or more paying agents, one or
more registrars and one or more conversion agents, in which case each reference
in this Indenture to the Trustees in respect of the obligations of the Trustees
to be performed by that agent will be deemed to be references to that the agent.
In each case the Corporation and the Trustees will enter into an appropriate
agreement with the agent implementing the provisions of this Indenture relating
to the obligations of the Trustees to be performed by the agent and the related
rights. The Corporation initially appoints the Canadian Trustee as paying agent,
registrar and conversion agent, and all functions related thereto shall occur at
the principal office of the Canadian Trustee in Toronto, Ontario. The
Corporation may change the paying agent, registrar or conversion agent without
prior notice to the holders, provided that neither the Corporation nor any of
its affiliates may act as paying agent, registrar or conversion agent. 

- 18 - 

The Corporation will require each paying agent other than the
Trustees to agree in writing that the paying agent will hold in trust for the
benefit of the holders or the Trustees all money held by the paying agent for
the payment of principal of and interest on the Debentures and will promptly
notify the Trustees of any default by the Corporation in making any such
payment. The Corporation at any time may require a paying agent to pay all money
held by it to the Trustees and account for any funds disbursed, and the Trustees
may at any time during the continuance of any payment default, upon written
request to a paying agent, require the paying agent to pay all money held by it
to the Trustees and to account for any funds disbursed. Upon doing so, the
paying agent will have no further liability for the money so paid over to the
Trustees.

	2.5 	
      Form and Terms of Initial
  Debentures

	 	(a) 	
      The Initial Debentures are limited to an aggregate
      principal amount of $22,000,000 and designated as “Floating Rate
      Convertible Unsecured Subordinated Debentures”.

	 	 	 
	 	(b) 	
      The Initial Debentures shall be dated as of the date of
      issue of the Initial Debentures and shall mature on December 31, 2020 (the
      “Maturity Date” for the Initial Debentures).

	 	 	 
	 	(c) 	
      

	 	(i) 	
      The Initial Debentures shall bear interest at the
      Applicable Rate from the date of issue, calculated and payable in
      semi-annual payments in arrears on the 30th day of June and the
      31st day of December in each year computed on the basis of a
      365-day year. Interest shall be payable at the Applicable Rate for each
      Interest Period from and including the last Interest Payment Date to, but
      excluding the next Interest Payment Date and the last such payment
      (representing interest payable from the last Interest Payment Date to the
      Maturity Date of the Initial Debentures) will fall due on December 31,
      2020. Interest shall accrue on amounts in default at the Applicable Rate,
      compounded semi-annually, computed on the basis of a 365-day year. For
      certainty, the first interest payment will include interest accrued and
      unpaid from and including the date of issue of the Initial Debentures, up
      to, but excluding, the first Interest Payment Date.

	 	 	 
	 	(ii) 	
      The interest rate for the Initial Debentures during each
      Interest Period (the “Applicable Rate”) shall be not less than
      8.50% per annum and not more than 13.50% per annum and shall fluctuate at
      a rate per annum from Interest Period to Interest Period, based on the
      simple average of the Ux Weekly Indicator (Spot Price) (the “UxC U3O8
      Weekly Indicator Price”) published by the Ux Consulting Company, LLC
      during the applicable Interest Period according to the table
  below:

	 	UxC U308 Weekly Indicator 	 	Annual Interest
      Rate 	 
	 	Price (in US$) 	 	  	 
	 	Up to $54.99 	 	8.50% 	 
	 	$55.00 – $59.99 	 	9.00% 	 
	 	$60.00 – $64.99 	 	9.50% 	 
	 	$65.00 – $69.99 	 	10.00% 	 
	 	$70.00 – $74.99 	 	10.50% 	 
	 	$75.00 – $79.99 	 	11.00% 	 
	 	$80.00 – $84.99 	 	11.50% 	 
	 	$85.00 – $89.99 	 	12.00% 	 
	 	$90.00 – $94.99 	 	12.50% 	 
	 	$95.00 – $99.99 	 	13.00% 	 
	 	$100 and above 	 	13.50% 	 

- 19 - 

	 	(iii) 	
      For each Interest Period terminating on June 30, the
      Applicable Rate shall be determined based on the simple average of the UxC
      U3O8 Weekly Indicator Price from January 1 to but excluding June 15 of
      that year. For each Interest Period terminating on December 31, the
      interest rate applicable to such period shall be determined based on the
      simple average of the UxC U3O8 Weekly Indicator Price from July 1 to but
      excluding December 15 of that year. In the case of a conversion of
      Debentures, a Redemption or a Change of Control, the Applicable Rate shall
      be based on the simple average of the UxC U3O8 Weekly Indicator Price from
      the first date of the applicable semi-annual period to the date that is 15
      days before the Date of Conversion, Redemption Date or the date of the
      Change of Control Notice, as applicable.

	 	 	 
	 	(iv) 	
      In the event that the UxC U3O8 Weekly Indicator Price
      ceases to exist, calculations will be based on another widely recognized
      uranium average price such as TradeTech, LLC or Bloomberg, to be
      determined by the Corporation.

	 	 	 
	 	(v) 	
      Any payment required to be made on any day that is not a
      Business Day will be made on the next succeeding Business Day.

	 	 	 
	 	(vi) 	
      The record dates for the payment of interest on the
      Initial Debentures will be the close of business on the Business Day
      immediately preceding the applicable Interest Payment
  Date.

	 	(d) 	
      At any time prior to the Maturity Date of the Initial
      Debentures, provided that the Current Market Price at the time of the
      Redemption Notice is at least 125% of the Conversion Price, the Initial
      Debentures may be redeemed at the option of the Corporation in whole or in
      part from time to time on notice as provided for in Section 4.3 at a
      Redemption Price equal to 100% (expressed as a percentage of their
      principal amount) plus accrued and unpaid interest thereon up to (but
      excluding) the Redemption Date. In connection with the redemption of the
      Initial Debentures pursuant to this Section 2.5(d), the Corporation may,
      at its option and subject to the provisions of Section 4.6 and subject to
      regulatory or stock exchange approval, elect to satisfy its obligation to
      pay all or a portion of the aggregate Redemption Price of the Initial
      Debentures to be redeemed by issuing and delivering to the holders of such
      Initial Debentures, such number of Freely Tradeable Common Shares as is
      obtained by dividing the principal amount of such Initial Debentures by
      95% of the Current Market Price in effect on the Redemption Date. If the
      Corporation elects to exercise such option, it shall so specify and
      provide details in the Redemption Notice. Any accrued and unpaid interest
      on such Initial Debentures to be redeemed will be paid in cash.
  The Redemption Notice for the Initial Debentures shall be
  substantially in the form of Schedule “B”.

- 20 - 

	 	(e) 	
      In addition, at any time after June 30, 2019 and prior to
      the Maturity Date of the Initial Debentures, the Initial Debentures may be
      redeemed at the option of the Corporation in whole or in part from time to
      time on notice as provided for in Section 4.3 at a Redemption Price equal
      to 101% (expressed as a percentage of their principal amount) plus accrued
      and unpaid interest thereon up to (but excluding) the Redemption Date.
      Notwithstanding anything in this Indenture to the contrary, in connection
      with the redemption of the Initial Debentures pursuant to this Section
      2.5(e), the Redemption Price (including accrued and unpaid interest) shall
      be paid in cash only. The Redemption Notice for the Initial Debentures
      shall be substantially in the form of Schedule “B”.

	 	 	 
	 	(f) 	
      The Initial Debentures will be subordinated to the Senior
      Indebtedness of the Corporation in accordance with the provisions of
      Article 5. In accordance with Section 2.13, the Initial Debentures will
      rank pari passu with each other series of Debentures issued under
      this Indenture or under indentures supplemental to this Indenture
      (regardless of their actual date or terms of issue) and, except as
      prescribed by law, with all other existing and future subordinated and
      unsecured indebtedness of the Corporation, other than Senior
      Indebtedness.

	 	 	 
	 	(g) 	
      Upon and subject to the provisions and conditions of
      Article 6 and Section 3.9, the holder of each Initial Debenture shall have
      the right at such holder’s option, at any time prior to the close of
      business on the earlier of (i) the Business Day immediately preceding the
      Maturity Date of the Initial Debentures; or (ii) the fifth Business Day
      immediately preceding the Redemption Date if the Initial Debentures are
      called for redemption by notice to the holders of Initial Debentures in
      accordance with Sections 2.5(d) and 4.3 (the earlier of which will be the
      “Time of Expiry” for the purposes of Article 6 in respect of the
      Initial Debentures), to convert any part, being $1,000 or an integral
      multiple thereof, of the principal amount of a Debenture into Common
      Shares at the Conversion Price in effect on the Date of Conversion. To the
      extent a redemption is a redemption in part only of the Initial
      Debentures, such right to convert, if not exercised prior to the
      applicable Time of Expiry, shall survive as to any Initial Debentures not
      redeemed or converted and be applicable to the next succeeding Time of
      Expiry.

The Conversion Price in effect on the
date hereof for each Common Share to be issued upon the conversion of Initial
Debentures shall be equal to $4.15 such that approximately 240.96 Common Shares
shall be issued for each $1,000 principal amount of Initial Debentures so
converted. Except as provided below, no adjustment in the number of Common
Shares to be issued upon conversion will be made for dividends or distributions
on Common Shares issuable upon conversion, the record date for the payment of
which precedes the date upon which the holder becomes a holder of Common Shares
in accordance with Article 6, or for interest accrued on Initial Debentures
surrendered. No fractional Common Shares will be issued, and holders will
receive a cash payment in satisfaction of any fractional interest based on the
Current Market Price as of the Date of Conversion, provided, however, that the
Corporation shall not be required to make any payment of less than $5.00. The Conversion Price
applicable to, and the Common Shares, securities or other property receivable on
the conversion of, the Initial Debentures is subject to adjustment pursuant to
the provisions of Section 6.5. The Conversion Price will not be adjusted for
accrued interest on the Debentures.

- 21 - 

Holders converting Debentures shall
receive accrued and unpaid interest thereon from the period of the last Interest
Payment Date prior to the Date of Conversion to the date that is one Business
Day prior to the Date of Conversion. 

Notwithstanding any other provisions
of this Indenture, if a Debenture is surrendered for conversion on an Interest
Payment Date or during the five preceding Business Days, the Person or Persons
entitled to receive Common Shares in respect of the Debenture so surrendered for
conversion shall not become the holder or holders of record of such Common
Shares until the Business Day following such Interest Payment Date.

A Debenture in respect of which a
holder has accepted a notice in respect of a Change of Control Purchase Offer
pursuant to the provisions of Section 2.5(k) may be surrendered for conversion
only if such notice is withdrawn in accordance with this Indenture. 

	 	(h) 	
      On redemption or maturity of the Initial Debentures, the
      Corporation may, at its option and subject to the provisions of Section
      2.5, Section 4.6 and Section 4.10, as applicable, and subject to
      regulatory or stock exchange approval, elect to satisfy its obligation to
      pay all or a portion of the aggregate principal amount of the Initial
      Debentures due on redemption or maturity, by issuing and delivering to
      such holders of Initial Debentures Freely Tradeable Common Shares pursuant
      to the provisions of Sections 4.6 and 4.10, as applicable. If the
      Corporation elects to exercise such option, it shall provide details in
      the Redemption Notice or deliver a maturity notice (the “Maturity
      Notice”) to the holders of the Initial Debentures in substantially the
      form of Schedule “C” and provide the necessary details. Any accrued and
      unpaid interest on such Initial Debentures to be redeemed or repaid will
      be paid in cash.

	 	 	 
	 	(i) 	
      The Initial Debentures shall be issued in denominations
      of $1,000 and integral multiples of $1,000. Each Initial Debenture and the
      certificate of the Trustees endorsed thereon shall be issued in
      substantially the form set out in Schedule “A” (provided that Initial
      Debentures issued in the form of Definitive Debentures shall be issued
      without the Global Debenture Legend and without the “Schedule of Exchanges
      of Interests in the Global Note” attached thereto), with such insertions,
      omissions, substitutions or other variations as shall be required or
      permitted by this Indenture, and may have imprinted or otherwise
      reproduced thereon such legend or legends or endorsements, not
      inconsistent with the provisions of this Indenture, as may be required to
      comply with any law or with any rules or regulations pursuant thereto or
      with any rules or regulations of any securities exchange or securities
      regulatory authority or to conform with general usage, all as may be
      determined by the Board of Directors executing such Initial Debenture in
      accordance with Section 2.8, as conclusively evidenced by their execution
      of an Initial Debenture. Each Initial Debenture shall additionally bear
      such distinguishing letters and numbers as
the Trustees shall approve. Notwithstanding the foregoing, an Initial Debenture
may be in such other form or forms as may, from time to time, be, approved by a
resolution of the Board of Directors, or as specified in an Officers’
Certificate. 

- 22 - 

The Initial Debentures may be
engraved, lithographed, printed, mimeographed or typewritten or partly in one
form and partly in another.

The Initial Debentures shall be issued
in the form of one or more Global Debentures and/or one or more Definitive
Debentures at the option of the Corporation. 

The Global Debentures will be
registered in the name of the Depository which, as of the date hereof, shall be
CDS Clearing and Depository Services Inc. (or any nominee of the Depository). No
Beneficial Holder will receive definitive certificates representing their
interest in Debentures except as provided in this Section 2.5(i) and Section
3.2. A Global Debenture may be exchanged for Definitive Debentures, or
transferred to and registered in the name of a Person other than the Depository
for such Global Debentures or a nominee thereof, as provided in Section 3.2.

The Definitive Debentures will be
registered in the names of each holder thereof as provided in Section 3.1. A
Definitive Debenture may be exchanged, or transferred to and registered in the
name of a Person other than the registered holder thereof, as provided in
Section 3.2. 

	 	(j) 	
      Upon and subject to the provisions of Article 10, the
      Corporation may elect, from time to time, subject to any required
      regulatory or stock exchange approval, to satisfy all or part of its
      Interest Obligation on the Initial Debentures on any Interest Payment Date
      (including, for greater certainty, following conversion or upon maturity
      or redemption) by delivering: (i) cash, (ii) Freely Tradeable Common
      Shares; or (iii) a combination of (i) and (ii) to the Trustees pursuant to
      the Common Share Interest Payment Election.

	 	 	 
	 	(k) 	
      Within 30 days following the occurrence of a Change of
      Control, and subject to the provisions and conditions of this Section
      2.5(k), the Corporation shall be obligated to make the Change of Control
      Purchase Offer in writing to holders of the Initial Debentures then
      outstanding. The terms and conditions of such obligation are set forth
      below:

	 	(i) 	
      Within 30 days following the occurrence of a Change of
      Control, the Corporation shall deliver to the Trustees, and the Trustees
      shall promptly deliver to the holders of the Initial Debentures, a notice
      stating that there has been a Change of Control and specifying the date on
      which such Change of Control occurred and the circumstances or events
      giving rise to such Change of Control (a “Change of Control
      Notice”) together with an offer in writing (the “Change of Control
      Purchase Offer”) to, at the option of the holder of the Initial
      Debentures, either: (i) purchase, on the Change of Control Purchase Date
      (as defined below), all (or any portion actually tendered to such offer) of the Initial
      Debentures then outstanding from the holders thereof made in accordance
      with the requirements of Applicable Securities Legislation and U.S.
      Securities Laws at a price per Initial Debenture equal to 100% of the
      principal amount thereof (the “Offer Price”) plus accrued and
      unpaid interest on such Initial Debentures up to, but excluding, the
      Change of Control Purchase Date (collectively, the “Total Offer
      Price”); or (ii) convert the Initial Debentures into Common Shares at
      the Change of Control Conversion Price. If such Change of Control Purchase
      Date is after a record date for the payment of interest on the Initial
      Debentures but on or prior to an Interest Payment Date, then the interest
      payable on such date will be paid to the holder of record of the
      Debentures on the relevant record date in cash. The “Change of Control
      Purchase Date” shall be the date that is 30 Business Days after the
      date that the Change of Control Notice and Change of Control Purchase
  Offer are delivered to holders of Initial Debentures.

- 23 - 

	 	(ii) 	
      The Change of Control Conversion Price will be calculated
      as follows:

	 	COCCP 	= 	ECP/(1+(CP x (c/t))) where: 
	 	 	 	 
	 	COCCP 	= 	is the Change of Control Conversion Price;
  
	 	 	 	 
	 	ECP 	= 	is the Conversion Price in effect on the date
      of the Change of Control; 
	 	  	  	
	 	CP 	= 	30.0%; 
	 	 	 	 
	 	c 	= 	the number of days from and including the date
      of the Change of Control to but excluding the Maturity Date; and 
	 	  	  	
	 	t 	= 	the number of days from and including the
      issuance date to but excluding the Maturity Date. 

	 	(iii) 	
      If 90% or more in aggregate principal amount of the
      Initial Debentures outstanding on the date the Corporation provides the
      Change of Control Notice and the Change of Control Purchase Offer to
      holders of the Initial Debentures have been tendered for purchase pursuant
      to the Change of Control Purchase Offer on or before the expiration
      thereof, the Corporation has the right upon written notice provided to the
      Trustees within 10 days following the expiration of the Change of Control
      Purchase Offer, to redeem all the Initial Debentures remaining outstanding
      on the expiration of the Change of Control Purchase Offer at the Total
      Offer Price as at the Change of Control Purchase Date (the “90%
      Redemption Right”).

	 	 	 
	 	(iv) 	
      Upon receipt of notice that the Corporation has exercised
      or is exercising the 90% Redemption Right and is acquiring the remaining
      Initial Debentures, the Trustees shall promptly provide written notice to
      each Debentureholder that did not previously accept the Offer
  that:

	 	(A) 	
      the Corporation has exercised the 90% Redemption Right
      and is purchasing all outstanding Initial Debentures effective on the
      expiry of the Change of Control Purchase Offer at the Total
  Offer Price, and shall include a calculation of the amount
      payable to such holder as payment of the Total Offer Price as at the
  Change of Control Purchase Date;

- 24 - 

	 	(B) 	
      each such holder must transfer their Initial Debentures
      to the Corporation on the same terms as those holders that accepted the
      Change of Control Purchase Offer and must send their respective Initial
      Debentures, duly endorsed for transfer, to the Trustees within 10 days
      after the sending of such notice; and

	 	 	 
	 	(C) 	
      the rights of such holder under the terms of the Initial
      Debentures and this Indenture cease to be effective as of the date of
      expiry of the Change of Control Purchase Offer provided the Corporation
      has, on or before the time of notifying the Trustees of the exercise of
      the 90% Redemption Right, paid the Total Offer Price to, or to the order
      of, the Trustees and thereafter the Initial Debentures shall not be
      considered to be outstanding and the holder shall not have any right
      except to receive such holder’s Total Offer Price upon surrender and
      delivery of such holder’s Initial Debentures in accordance with the
      Indenture.

	 	(v) 	
      The Corporation shall, on or before 11:00 a.m., Toronto
      time, on the Business Day immediately prior to the Change of Control
      Purchase Date, deposit with the Trustees or any other paying agent to the
      order of the Trustees, such sums of money as are sufficient to pay the
      Total Offer Price of the Initial Debentures to be purchased or redeemed by
      the Corporation on the Change of Control Purchase Date, provided the
      Corporation may elect to satisfy this requirement by providing the
      Trustees with a certified cheque or wire transfer for such amounts
      required under this Section 2.5(k)(v) post-dated to the date of expiry of
      the Change of Control Purchase Offer. The Corporation shall also deposit
      with the Trustees a sum of money sufficient to pay any charges or expenses
      which may be incurred by the Trustees in connection with such purchase.
      Every such deposit shall be irrevocable. From the sums so deposited, the
      Trustees shall pay or cause to be paid to the holders of such Initial
      Debentures, the Total Offer Price to which they are entitled on the
      Corporation’s purchase.

	 	 	 
	 	(vi) 	
      In the event that one or more of such Initial Debentures
      being purchased in accordance with this Section 2.5(k) becomes subject to
      purchase in part only, upon surrender of such Initial Debentures for
      payment of the Total Offer Price, the Corporation shall execute and the
      Trustees shall certify and deliver without charge to the holder thereof or
      upon the holder’s order, one or more new Initial Debentures for the
      portion of the principal amount of the Initial Debentures not
      purchased.

	 	 	 
	 	(vii) 	
      Initial Debentures for which holders have accepted the
      Change of Control Purchase Offer and Initial Debentures which the
      Corporation has elected to redeem in accordance with this Section 2.5(k)
      shall become due and payable at the Total Offer Price on the Change of
      Control Purchase Date, in the same manner and with the same effect as if it were
      the date of maturity specified in such Initial Debentures, anything
      therein or herein to the contrary notwithstanding, and from and after the
      Change of Control Purchase Date, if the money necessary to purchase or
      redeem, or the Common Shares necessary to purchase or redeem, the Initial
      Debentures shall have been deposited as provided in this Section 2.5(k)
      and affidavits or other proofs as to the publication and/or mailing of
      such notices shall have been lodged with it, interest on the Initial
      Debentures shall cease. If any question shall arise as to whether any
      notice has been given as above provided and such deposit made, such
      question shall be decided by the Trustees whose decision shall be final
  and binding upon all parties.

- 25 - 

	 	(viii) 	
      In case the holder of any Initial Debenture to be
      purchased or redeemed in accordance with this Section 2.5(k) shall fail on
      or before the Change of Control Purchase Date to so surrender such
      holder’s Initial Debenture or shall not within such time accept payment of
      the monies payable, to take delivery of certificates representing such
      Common Shares issuable in respect thereof, or give such receipt therefor,
      if any, as the Trustees may require, such monies may be set aside in
      trust, or such certificates may be held in trust, without interest, either
      in the deposit department of the Trustees or in a chartered bank, and such
      setting aside shall for all purposes be deemed a payment to the
      Debentureholder of the sum or the Common Shares so set aside and the
      Debentureholder shall have no other right except to receive payment of the
      monies so paid and deposited, or take delivery of the certificates so
      deposited, or both, upon surrender and delivery of such holder’s Initial
      Debenture. In the event that any money or certificates representing Common
      Shares required to be deposited hereunder with the Trustees or any
      depository or paying agent on account of principal, premium, if any, or
      interest, if any, on Initial Debentures issued hereunder shall remain so
      deposited for a period of five years less one day from the Change of
      Control Purchase Date, then such monies, or certificates representing
      Common Shares, together with any distributions paid thereon, shall at the
      end of such period be paid over or delivered over by the Trustees or such
      depository or paying agent to the Corporation and the Trustees shall not
      be responsible to Debentureholders for any amounts owing to them.
      Notwithstanding the foregoing, the Trustees will pay any remaining funds
      deposited hereunder prior to the expiry of five years less one day after
      the Change of Control Purchase Date to the Corporation upon receipt from
      the Corporation of an unconditional letter of credit from a Canadian
      chartered bank in an amount equal to or in excess of the amount of the
      remaining funds. If the remaining funds are paid to the Corporation prior
      to the expiry of five years less one day after the Change of Control
      Purchase Date, the Corporation shall reimburse the Trustees for any
      amounts required to be paid by the Trustees to a holder of a Debenture
      pursuant to the Change of Control Purchase Offer after the date of such
      payment of the remaining funds to the Corporation but prior to five years
      less one day after the Change of Control Purchase
Date.

- 26 - 

	 	(ix) 	
      Subject to the provisions above related to Initial
      Debentures purchased in part, all Initial Debentures redeemed and paid
      under this Section 2.5(k) shall forthwith be delivered to the Trustees and
      cancelled and no Initial Debentures shall be issued in substitution
      therefor.

	 	(l) 	
      Holders of the Initial Debentures shall have a right to
      require the Corporation to purchase up to 20% of the Initial Debentures on
      the following terms and conditions:

	 	(i) 	
      Each holder of Initial Debentures shall have the right
      (the “Put Right”) to require the Corporation to purchase up to 20%
      of the Initial Debentures held by such holder on the Put Date at a price
      equal to 100% of the principal amount thereof (the “Put Price”)
      plus accrued and unpaid interest (less any tax required by law to be
      deducted) on such Initial Debentures up to, but excluding, the Put Date
      (collectively, the “Total Put Price”).

	 	 	 
	 	(ii) 	
      To exercise the Put Right, a holder of Initial Debentures
      must deliver to the Trustees, not less than 10 Business Days prior to the
      Put Date, written notice of the holder’s exercise of the Put Right in the
      form attached as Schedule “E” hereto together with (A) the Initial
      Debentures with respect to which the right is being exercised, duly
      endorsed for transfer, or (B) if the Initial Debentures have been issued
      as Global Debentures, a duly endorsed form of transfer.

	 	 	 
	 	(iii) 	
      The Corporation shall, on or before 11:00 a.m., Toronto
      time on the Business Day immediately prior to the Put Date, deposit with
      the Trustees or any paying agent to the order of the Trustees, such sums
      of money as are sufficient to pay the Total Put Price of the Initial
      Debentures to be purchased by the Corporation on the Put Date, provided
      the Corporation may elect to satisfy this requirement by providing the
      Trustees with a certified cheque for such amounts post-dated to the Put
      Date or the Corporation may satisfy this requirement by an electronic
      funds transfer of such sums of money on the Business Day prior to the Put
      Date.

	 	 	 
	 	(iv) 	
      Upon surrender of any Initial Debentures for payment of
      the Total Put Price, the portion of the Initial Debentures that are
      purchased pursuant to the Put Right shall forthwith be cancelled and the
      Corporation shall execute and the Trustees shall certify and deliver
      without charge to the holder thereof or upon the holder’s order, one or
      more new Initial Debentures for the portion of the principal amount of the
      Initial Debentures not purchased.

	 	 	 
	 	(v) 	
      If the holder of any Initial Debenture to be purchased
      pursuant to a Put Right shall fail on or before the Put Date to surrender
      such holder’s Initial Debenture or duly endorsed form of transfer or shall
      not within such time accept payment of the moneys payable, or give such
      receipt therefor, if any, as the Trustees may require, such moneys may be
      set aside in trust without interest, either on deposit with the Trustees
      or in a chartered bank for the benefit of the Trustees, and such setting aside shall
for all purposes be deemed a payment to the holder of the Initial Debentures of
the sum so set aside and the Initial Debentures that were so purchased shall
thereafter not be considered as outstanding hereunder and the holder of such
Initial Debentures shall have no other right in respect of such purchased
Initial Debentures except to receive payment of the moneys so paid and
deposited, upon surrender and delivery of such holder’s Initial Debenture, of
the Total Put Price. If any money required to be deposited hereunder with the
Trustees or any depositary or paying agent on account of principal or interest,
if any, on Initial Debentures issued hereunder shall remain so deposited for a
period of ten years from the Put Date, then to the extent permitted by law, such
moneys, together with any accumulated interest thereon, shall at the end of such
period be paid over or delivered over by the Trustees or such depositary or
paying agent to the Corporation and the Trustees shall not be responsible to
holder of the Initial Debentures for any amounts owing to them. 

- 27 - 

	 	(m) 	
      The Company shall comply with the requirements of Rule
      13e-4 under the 1934 Act and any other securities laws and regulations
      thereunder to the extent those laws and regulations are applicable in
      connection with the repurchase of the Notes as a result of a Change of
      Control Purchase Offer or pursuant to the Put Right. To the extent that
      the provisions of any securities laws or regulations conflict with the
      Change of Control Purchase Offer or Put Right provisions of this
      Indenture, the Company shall comply with the applicable securities laws
      and regulations and shall not be deemed to have breached its obligations
      under Section 2.5(k) or 2.5(l) hereof by virtue of such
  compliance.

	2.6 	
      Certification and Delivery of
    Debentures

The Corporation may from time to time request the Trustees to
certify and deliver Initial Debentures or Additional Debentures of any series by
delivering to the Trustees the documents referred to below in this Section 2.6
whereupon the Trustees shall certify such Debentures and cause the same to be
delivered in accordance with the Written Direction of the Corporation referred
to below or pursuant to such procedures acceptable to the Trustees as may be
specified from time to time by a Written Direction of the Corporation. The
maturity date, issue date, interest rate (if any) and any other terms of the
Debentures of such series, other than with respect to the Initial Debentures,
shall be set forth in or determined by or pursuant to such Written Direction of
the Corporation and procedures. In certifying such Debentures, the Trustees
shall be entitled to receive and shall be fully protected in relying upon,
unless and until such documents have been superseded or revoked: 

	 	(a) 	
      an Officers’ Certificate and/or executed supplemental
      indenture by or pursuant to which the form and terms of the Additional
      Debentures were established;

	 	 	 
	 	(b) 	
      a Written Direction of the Corporation requesting
      certification and delivery of Debentures and setting forth delivery
      instructions, provided that, with respect to Additional Debentures of a
      series subject to a Periodic Offering:

- 28 - 

	 	(i) 	
      such Written Direction of the Corporation may be
      delivered by the Corporation to the Trustees prior to the delivery to the
      Trustees of such Additional Debentures of such series for certification
      and delivery;

	 	 	 
	 	(ii) 	
      the Trustees shall certify and deliver Additional
      Debentures of such series for original issue from time to time, in an
      aggregate principal amount not exceeding the aggregate principal amount,
      if any, established for such series, pursuant to a Written Direction of
      the Corporation or pursuant to procedures acceptable to the Trustees as
      may be specified from time to time by a Written Direction of the
      Corporation;

	 	 	 
	 	(iii) 	
      the maturity date or dates, issue date or dates, interest
      rate or rates (if any) and any other terms of Additional Debentures of
      such series shall be determined by an executed supplemental indenture or
      by Written Direction of the Corporation or pursuant to such procedures;
      and

	 	 	 
	 	(iv) 	
      if provided for in such procedures, such Written
      Direction of the Corporation may authorize certification and delivery
      pursuant to oral or electronic instructions from the Corporation which
      oral or electronic instructions shall be promptly confirmed in
    writing;

	 	(c) 	
      an opinion of Counsel, in form and substance satisfactory
      to the Trustees, acting reasonably, to the effect that all requirements
      imposed by this Indenture and by law in connection with the proposed issue
      of the Debentures have been complied with, subject to the delivery of
      certain documents or instruments specified in such opinion, and that upon
      the execution and authentication of the Debentures, the Debentures will be
      valid and binding obligations of the Corporation, enforceable in
      accordance with their terms; and

	 	 	 
	 	(d) 	
      an Officers’ Certificate (which Officers’ Certificate
      shall be in such form that satisfies all applicable laws) certifying that
      the Corporation is not in default under this Indenture, that the terms and
      conditions for the certification and delivery of the Debentures (including
      those set forth in Section 15.5), have been complied with subject to the
      delivery of any documents or instruments specified in such Officers’
      Certificate and that no Event of Default exists or will exist upon such
      certification and delivery.

	2.7 	
      Issue of Global
Debentures

	 	(a) 	
      The Corporation may specify that the Debentures of a
      series are to be issued in whole or in part as one or more Global
      Debentures registered in the name of a Depository, or its nominee,
      designated by the Corporation in the Written Direction of the Corporation
      delivered to the Trustees at the time of issue of such Debentures, and in
      such event the Corporation shall execute and the Trustees shall certify
      and deliver one or more Global Debentures that
shall:

	 	(i) 	
      represent an aggregate amount equal to the principal
      amount of the outstanding Debentures of such series to be represented by
      one or more Global Debentures;

- 29 - 

	 	(ii) 	
      be delivered by the Trustees to such Depository or
      pursuant to such Depository’s instructions; and

	 	 	 
	 	(iii) 	
      bear a legend substantially to the following
    effect:

UNLESS THIS CERTIFICATE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC.
(“CDS”) TO ENERGY FUELS INC. (THE “ISSUER”) OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN
RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY PAYMENT IS
MADE TO CDS & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER HEREOF,
CDS & CO., HAS A PROPERTY INTEREST IN THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HEREIN AND IT IS A VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO
HOLD, TRANSFER OR DEAL WITH THIS CERTIFICATE. 

TRANSFERS OF THIS DEBENTURE SHALL BE
LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CDS & CO. OR
TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE.” 

	 	(b) 	
      Each Depository designated for a Global Debenture must,
      at the time of its designation and at all times while it serves as such
      Depository, be a clearing agency registered or designated under the
      securities legislation of the jurisdiction where the Depository has its
      principal offices.

	 	 	 
	 	(c) 	
      Global Debentures issued to the Depository may be
      surrendered to the Trustees for an electronic position on the register of
      Debentureholders to be maintained by the Trustees in accordance with
      Section 3.2(a). All Debentures maintained in such electronic position will
      be valid and binding obligations of the Corporation, entitling the
      registered holders thereof to the same benefits as those registered
      holders who hold Debentures in physical form. This Indenture and the
      provisions contained herein will apply, mutatis mutandis, to such
      Debentures held in such electronic position.

	 	 	 
	 		
      The Debentures and the Common Shares issuable upon
      conversion thereof have not been and will not be registered under the 1933
      Act or under any state securities laws.

	2.8 	
      Execution of
Debentures

All Debentures shall be signed (either manually or by
electronic signature) by any one authorized director or officer of the
Corporation holding office at the time of signing. An electronic signature upon
a Debenture shall for all purposes of this Indenture be deemed to be the
signature of the Person whose signature it purports to be. 

- 30 - 

Notwithstanding that any Person whose signature, either manual
or electronic, appears on a Debenture as a director or officer may no longer
hold such office at the date of the Debenture or at the date of the
certification and delivery thereof, such Debenture shall be valid and binding
upon the Corporation and entitled to the benefits of this Indenture. 

	2.9 	
      Certification

No Debenture shall be issued or, if issued, shall be obligatory
or shall entitle the holder to the benefits of this Indenture, until it has been
manually certified by or on behalf of the Trustees substantially in the form set
out in this Indenture, in the relevant supplemental indenture, or in some other
form approved by the applicable Trustee. Such certification on any Debenture
shall be conclusive evidence that such Debenture is duly issued, is a valid
obligation of the Corporation and the holder is entitled to the benefits hereof.

The certificate of the applicable Trustee signed on the
Debentures, or interim Debentures hereinafter mentioned, shall not be construed
as a representation or warranty by the Trustees as to the validity of this
Indenture or of the Debentures or interim Debentures or as to the issuance of
the Debentures or interim Debentures and the Trustees shall in no respect be
liable or answerable for the use made of the Debentures or interim Debentures or
any of them or the proceeds thereof. The certificate of the applicable Trustee
on the Debentures or interim Debentures shall, however, be a representation and
warranty by the applicable Trustee that the Debentures or interim Debentures
have been duly certified by or on behalf of the applicable Trustee pursuant to
the provisions of this Indenture. 

	2.10 	
      Interim Debentures or
  Certificates

Pending the delivery of Definitive Debentures of any series to
the applicable Trustee, the Corporation may issue and the applicable Trustee
certify in lieu thereof interim Debentures in such forms and in such
denominations and signed in such manner as provided herein, entitling the
holders thereof to Definitive Debentures of the series when the same are ready
for delivery; or the Corporation may execute and the applicable Trustee certify
a temporary Debenture for the whole principal amount of Debentures of the series
then authorized to be issued hereunder and deliver the same to the applicable
Trustee and thereupon the applicable Trustee may issue its own interim
certificates in such form and in such amounts, not exceeding in the aggregate
the principal amount of the temporary Debenture so delivered to it, as the
Corporation and the Trustees may approve entitling the holders thereof to
Definitive Debentures of the series when the same are ready for delivery; and,
when so issued and certified, such interim or temporary Debentures or interim
certificates shall, for all purposes but without duplication, rank in respect of
this Indenture equally with Debentures duly issued hereunder and, pending the
exchange thereof for Definitive Debentures, the holders of the interim or
temporary Debentures or interim certificates shall be deemed without duplication
to be Debentureholders and entitled to the benefit of this Indenture to the same
extent and in the same manner as though the said exchange had actually been
made. Forthwith after the Corporation shall have delivered the Definitive
Debentures to the applicable Trustee, the applicable Trustee shall cancel such
temporary Debentures, if any, and shall call in for exchange all interim
Debentures or certificates that shall have been issued and forthwith after such
exchange shall cancel the same. No charge shall be made by the Corporation or
the applicable Trustee to the holders of such interim or temporary Debentures or
interim certificates for the exchange thereof. All interest paid upon interim or
temporary Debentures or interim certificates shall be noted thereon as a condition precedent to
such payment unless paid by cheque to the registered holders thereof. 

- 31 - 

	2.11 	
      Mutilation, Loss, Theft or
    Destruction

In case any of the Debentures issued hereunder shall become
mutilated or be lost, stolen or destroyed, the Corporation, in its discretion,
may issue, and thereupon the applicable Trustee shall certify and deliver, a new
Debenture upon surrender and cancellation of the mutilated Debenture, or in the
case of a lost, stolen or destroyed Debenture, in lieu of and in substitution
for the same, and the substituted Debenture shall be in a form approved by the
Trustees and shall be entitled to the benefits of this Indenture and rank
equally in accordance with its terms with all other Debentures issued or to be
issued hereunder. In case of loss, theft or destruction the applicant for a
substituted Debenture shall furnish to the Corporation and to the Trustees such
evidence of the loss, theft or destruction of the Debenture as shall be
satisfactory to them in their discretion and shall also furnish an indemnity and
surety bond satisfactory to them in their discretion. The applicant shall pay
all reasonable expenses incidental to the issuance of any substituted Debenture.

	2.12 	
      Concerning
Interest

	 	(a) 	
      All Debentures issued hereunder, whether originally or
      upon exchange or in substitution for previously issued Debentures which
      are interest bearing, shall bear interest (i) from and including their
      issue date, or (ii) from and including the last Interest Payment Date to
      which interest shall have been paid or made available for payment on the
      outstanding Debentures of that series, whichever shall be the later, or,
      in respect of Debentures subject to a Periodic Offering, from and
      including their issue date or from and including the last Interest Payment
      Date to which interest shall have been paid or made available for payment
      on such Debentures, in all cases, to and excluding the next Interest
      Payment Date.

	 	 	 
	 	(b) 	
      Unless otherwise specifically provided in the terms of
      the Debentures of any series, interest for any period shall be computed on
      the basis of a year of 365 days and the actual number of days elapsed in
      such period. With respect to any series of Debentures, for the purposes
      disclosure under the Interest Act (Canada), whenever interest is
      computed on the basis of a year (the “deemed year”) which contains
      fewer days than the actual number of days in the calendar year of
      calculation, such rate of interest shall be expressed as a yearly rate for
      purposes of the Interest Act (Canada) by multiplying such rate of
      interest by the actual number of days in such calendar year of calculation
      and dividing it by the number of days in the deemed
year.

	2.13 	
      Debentures to Rank Pari
  Passu

The Debentures will be direct unsecured obligations of the
Corporation. Each Debenture of the same series of Debentures will rank pari
passu with each other Debenture of the same series (regardless of their
actual date or terms of issue) and, subject to statutory preferred exceptions,
with all other present and future subordinated and unsecured indebtedness of the
Corporation, other than Senior Indebtedness. 

- 32 - 

	2.14 	
      Payments of Amounts Due on
  Maturity

Except as may otherwise be provided herein or in any
supplemental indenture in respect of any series of Debentures and subject to
Section 4.10, payments of amounts due upon maturity of the Debentures will be
made in the following manner. The Corporation will establish and maintain with
the Trustees a Maturity Account for each series of Debentures. Each such
Maturity Account shall be maintained by and be subject to the control of the
Trustees for the purposes of this Indenture. On or before 11:00 a.m. (Toronto
time) on the Business Day immediately prior to each Maturity Date for Debentures
outstanding from time to time under this Indenture, the Corporation will deliver
to the Trustees a certified cheque or wire transfer for deposit in the
applicable Maturity Account in an amount sufficient to pay the cash amount
payable in respect of such Debentures (including the principal amount together
with any accrued and unpaid interest thereon). The Trustees, on behalf of the
Corporation, will pay to each holder entitled to receive payment the principal
amount of and premium (if any) and accrued and unpaid interest on the Debenture,
upon surrender of the Debenture at any branch of the Trustees designated for
such purpose by the Corporation and the Trustees. The delivery of such funds to
the Trustees for deposit to the applicable Maturity Account will satisfy and
discharge the liability of the Corporation for the Debentures to which the
delivery of funds relates to the extent of the amount delivered and such
Debentures will thereafter to that extent not be considered as outstanding under
this Indenture and such holder will have no other right in regard thereto other
than to receive out of the money so delivered or made available the amount to
which it is entitled. 

	2.15 	
      Payment of Interest

The following provisions shall apply to Debentures, except as
otherwise provided in Section 2.5(c) or specified in a resolution of the Board
of Directors, an Officers’ Certificate or a supplemental indenture relating to a
particular series of Additional Debentures: 

	 	(a) 	
      As interest becomes due on each Debenture (except,
      subject to certain exceptions set forth herein including in Section 2.5,
      on conversion or on redemption, when interest may at the option of the
      Corporation be paid upon surrender of such Debenture), the Corporation,
      either directly or through the Trustees or any agent of the Trustees,
      shall send or forward by prepaid ordinary mail, electronic transfer of
      funds or such other means as may be agreed to by the Trustees, payment of
      such interest to the order of the registered holder of such Debenture
      appearing on the registers maintained by the Trustees at the close of
      business on the fifth Business Day prior to the applicable Interest
      Payment Date and addressed to the holder at the holder’s last address
      appearing on the register, unless such holder otherwise directs. If
      payment is made by cheque, such cheque shall be forwarded at least three
      days prior to each date on which interest becomes due and if payment is
      made by other means (such as electronic transfer of funds, provided the
      Trustees must receive confirmation of receipt of funds prior to being able
      to wire funds to holders), such payment shall be made in a manner whereby
      the holder receives credit for such payment on the date such interest on
      such Debenture becomes due. The mailing of such cheque or the making of
      such payment by other means shall, to the extent of the sum represented
      thereby, satisfy and discharge all liability for interest on such
      Debenture, unless in the case of payment by cheque, such cheque is not
      paid at par on presentation. In the event of non-receipt of any cheque for
      or other payment of interest by the Person to whom it is so sent as
      aforesaid, the Corporation, either directly or through the Trustees or
      any agent of the Trustees, will issue to such Person a replacement cheque
      or other payment for a like amount upon being furnished with such evidence
      of non-receipt as they shall reasonably require and upon being indemnified
      to their satisfaction. Notwithstanding the foregoing, if the Corporation
      is prevented by circumstances beyond its control (including, without
      limitation, any interruption in mail service) from making payment of any
      interest due on each Debenture in the manner provided above, the
      Corporation may make payment of such interest or make such interest
      available for payment in any other manner acceptable to the Trustees,
      acting reasonably, with the same effect as though payment had been made in
  the manner provided above.

- 33 - 

	 	(b) 	
      All payments of interest on the Global Debenture shall be
      made by electronic funds transfer or certified cheque made payable to the
      Depository or its nominee on the day interest is payable for subsequent
      payment to Beneficial Holders of the applicable Global Debenture, unless
      the Corporation, the Trustees and the Depository otherwise agree. None of
      the Corporation, the Trustees or any agent of the Trustees for any
      Debenture issued as a Global Debenture will be liable or responsible to
      any Person for any aspect of the records related to or payments made on
      account of beneficial interests in any Global Debenture or for
      maintaining, reviewing, or supervising any records relating to such
      beneficial interests.

	2.16 	
      Tax Gross Up

	 	(a) 	
      Unless otherwise expressly provided in the terms of the
      Debentures, all payments made by the Corporation, Depository, a Depository
      Participant or a financial intermediary having an account with any
      Depository Participant making such payment (the “Payor”) under or
      with respect to the Debentures (including for greater certainty and
      without limitation, the delivery of Common Shares or other property in
      connection with the exercise of a conversion of Debentures), to a holder
      will be made free and clear of and without withholding or deduction for or
      on account of any present or future tax, duty, levy, impost, assessment or
      other governmental charge including penalties, interest and other
      liabilities related thereto imposed or levied by or on behalf of the
      Government of Canada or of any province or territory thereof or by any
      authority or agency therein or thereof having power to tax (hereinafter
      “Canadian Taxes”), unless there is an obligation on the Payor to
      withhold or deduct Canadian Taxes by law or by the interpretation or
      administration thereof. Notwithstanding anything to the contrary contained
      herein or in any Debenture, if the Payor is so required to withhold or
      deduct any amount for or on account of Canadian Taxes from any payment
      made under or with respect to the Debentures, the Corporation will pay on
      behalf of each holder as additional interest such additional amounts
      (“Additional Amounts”) as may be necessary so that the net amount
      received by each holder after such withholding or deduction (and after
      deducting any Canadian Taxes on such Additional Amounts) will not be less
      than the amount the holder would have received if such Canadian Taxes had
      not been withheld or deducted. However, no Additional Amounts will be
      payable with respect to a payment made to a holder (such holder, an
      “Excluded Holder”) in respect of the beneficial owner
      thereof which is subject to such Canadian Taxes by reason of such holder
      being a resident, domicile or national of, or engaged in business or
      maintaining a permanent establishment or other presence in, or otherwise
      having some present or former connection with Canada or any province or
      territory thereof otherwise than by the mere holding of Debentures or the
  receipt of payments thereunder.

- 34 - 

	 	(b) 	
      The Corporation will make payment of all Additional
      Amounts to each Payor and each Payor will:

	 	(i) 	
      make such withholding or deduction;

	 	 	 
	 	(ii) 	
      remit the full amount deducted or withheld to the
      relevant authority in accordance with applicable law; and

	 	 	 
	 	(iii) 	
      provide to the holders of Debentures copies of tax
      receipts and other documents evidencing such payment by the Corporation in
      a timely fashion.

	 	(c) 	
      The Corporation will indemnify and hold harmless each
      holder (other than an Excluded Holder), and, within 10 Business Days upon
      a written request in respect thereof, reimburse each such holder for the
      amount, excluding any payment of Additional Amounts by the Corporation,
      of:

	 	(i) 	
      any Canadian Taxes so levied or imposed and paid by such
      holder as a result of payments made under or with respect to the
      Debentures;

	 	 	 
	 	(ii) 	
      any liability (including penalties, interest and
      expenses) arising therefrom or with respect thereto; and

	 	 	 
	 	(iii) 	
      any Canadian Taxes imposed with respect to any
      reimbursement under clause (i) or (ii) in this paragraph, but excluding
      any such Canadian Taxes on such holder’s net income and such indemnity
      will survive the termination or discharge of this Indenture and the
      payment of all amounts under or with respect to the Debenture
      indefinitely.

	 	(d) 	
      Wherever in this Indenture there is mentioned, in any
      context, the payment of principal (and premium, if any), interest or any
      other amount payable under or with respect to a Debenture, such mention
      shall be deemed to include mention of the payment of Additional Amounts to
      the extent that, in such context, Additional Amounts are, were or would be
      payable in respect thereof.

	 	 	 
	 	(e) 	
      If Canadian Taxes are or were required to be withheld or
      deducted in respect of amounts payable or paid by any Payor from any
      payment to be made or made hereunder pursuant to applicable law or by the
      interpretation or administration thereof, such Payor shall provide the
      Corporation with notice in writing that such withholding or deduction is
      or was required and certifying all of the facts and circumstances
      supporting the conclusion that such withholding or deduction is or was
      required. Such certificate shall constitute prima facie evidence of
    the Corporation’s obligation to pay the Additional Amounts
  required under Section 2.16(b).

- 35 - 

	 	(f) 	
      If Canadian Taxes are required to be withheld or deducted
      from any payment made hereunder pursuant to applicable law or by the
      interpretation or administration thereof and the Corporation is required
      to pay Additional Amounts to a holder pursuant to this Section 2.16, or
      indemnify a holder under Section 2.16(c), the holder shall use its
      commercially reasonable efforts to cooperate with the Corporation in
      taking any action to dispute, object to or appeal the liability of the
      holder for Canadian Taxes or in claiming a refund of amounts remitted as
      Canadian Taxes (or any objection or appeal in connection therewith)
      (collectively, “Tax Proceedings”).

Without limiting the generality of the
foregoing: 

	 	(i) 	
      The holder agrees that the Corporation shall, at its own
      expense, have the right to initiate and conduct and have carriage and
      control of the Tax Proceedings and where necessary for the purposes of the
      Tax Act in the name of, and on behalf of, the holder.

	 	 	 
	 	(ii) 	
      The holder shall use its commercially reasonable efforts
      to do all acts and sign all documents that may be necessary or desirable
      in order to initiate or conduct the Tax Proceedings where such Tax
      Proceedings need to be initiated or conducted in the name of, or on behalf
      of, the holder.

	 	 	 
	 	(iii) 	
      If the holder receives a refund of any amount with
      respect to Canadian Taxes (including interest, on such refund, if any) for
      which the Corporation grossed up the holder, the holder shall forthwith
      pay the amount of any such refund (including interest, on such refund, if
      any less any applicable withholding tax), to such extent, to the
      Corporation and hereby assigns the right to any such refund, to such
      extent, to the Corporation.

	 	 	 
	 		
      For certainty, the holder shall provide any information
      regarding itself and/or its beneficial owners to the Corporation as may be
      desirable or necessary to permit the Corporation to comply with its
      withholding obligations and advance any Tax Proceedings. To the extent the
      holder incurs any reasonable expense or liability in connection with its
      activities pursuant to this Section 2.16(e), the Corporation shall
      reimburse and indemnify the holder within two Business Days of request by
      the holder. The Corporation shall not disclose any information provided
      herein without the express written consent of the holder, and shall not
      use any information provided under this Section 2.16 for any purpose other
      than in connection with the Tax Proceedings.

	 	(g) 	
      In order to assist the Corporation in complying with this
      Section 2.16, the Trustees will request from the Depository and provide to
      the Corporation within two Business Days of each record date, a list of
      Depository participants who hold Debentures as of the record
  date.

- 36 - 

	2.17 	
      FATCA

The Corporation agrees (i) to provide the Trustees with such
reasonable information as it has in its possession to enable the Trustees to
determine whether any payments pursuant to the Indenture are subject to the
withholding requirements described in Section 1471(b) of the U.S. Internal
Revenue Code of 1986 (the “Code”) or otherwise imposed pursuant to Sections 1471
through 1474 of the Code and any regulations, or agreements thereunder or
official interpretations thereof (“Applicable Law”), and (ii) that the Trustees
shall be entitled to make any withholding or deduction from payments under the
Indenture to the extent necessary to comply with Applicable Law, for which the
Trustees shall not have any liability. 

ARTICLE 3 
REGISTRATION, TRANSFER, EXCHANGE AND
OWNERSHIP 

	3.1 	
      Definitive
Debentures

	 	(a) 	
      With respect to each series of Debentures issuable as
      Definitive Debentures, the Corporation shall cause to be kept at the
      principal office of the Trustees or such other registrar as the
      Corporation, with the approval of the Trustees, may appoint at such other
      place or places, if any, as may be specified in the Debentures of such
      series or as the Corporation may designate with the approval of the
      Trustees, a register in which shall be entered the names and addresses of
      the holders of Definitive Debentures and particulars of the Debentures
      held by them respectively and of all transfers of Definitive Debentures.
      Such registration shall be noted on the Debentures by the Trustees or
      other registrar unless a new Debenture shall be issued upon such
      transfer.

	 	 	 
	 	(b) 	
      No transfer of a Definitive Debenture shall be valid
      unless made on such register referred to in Section 3.1(a) by the
      registered holder or such holder’s executors, administrators or other
      legal representatives or an attorney duly appointed by an instrument in
      writing in form and executed in a manner satisfactory to the Trustees or
      other registrar upon surrender of the Debentures together with a duly
      executed form of transfer acceptable to the Trustees and upon compliance
      with such other reasonable requirements as the Trustees or other registrar
      may prescribe, or unless the name of the transferee shall have been noted
      on the Debenture by the Trustees or other
registrar.

	3.2 	
      Global
Debentures

	 	(a) 	
      With respect to each series of Debentures issuable in
      whole or in part as one or more Global Debentures, the Corporation shall
      cause to be kept by and at the principal office of the Canadian Trustee in
      Toronto, Ontario or such other registrar as the Corporation, with the
      approval of the Trustees, may appoint at such other place or places, if
      any, as the Corporation may designate with the approval of the Trustees, a
      register in which shall be entered the name and address of the holder of
      each such Global Debenture (being the Depository, or its nominee, for such
      Global Debenture) as holder thereof and particulars of the Global
      Debenture held by it, and of all transfers
thereof.

- 37 - 

	 	(b) 	
      Notwithstanding any other provision of this Indenture, a
      Global Debenture may not be transferred by the registered holder thereof
      and accordingly, no definitive certificates shall be issued to Beneficial
      Holders except in the following circumstances or as otherwise specified in
      a resolution of the Board of Directors, Officers’ Certificate or
      supplemental indenture relating to a particular series of Additional
      Debentures:

	 	(i) 	
      Global Debentures may be transferred by a Depository to a
      nominee of such Depository or by a nominee of a Depository to such
      Depository or to another nominee of such Depository or by a Depository or
      its nominee to a successor Depository or its nominee;

	 	 	 
	 	(ii) 	
      Global Debentures may be transferred at any time after
      the Depository for such Global Debentures (i) has notified the Trustees,
      or the Corporation has notified the Trustees, that it is unwilling or
      unable to continue as Depository for such Global Debentures, or (ii)
      ceases to be eligible to be a Depository under Section 2.7(b), provided
      that at the time of such transfer the Corporation has not appointed a
      successor Depository for such Global Debentures;

	 	 	 
	 	(iii) 	
      Global Debentures may be transferred at any time after
      the Corporation has determined, in its sole discretion, to terminate the
      book-entry only registration system in respect of such Global Debentures
      and has communicated such determination to the Trustees in
  writing;

	 	 	 
	 	(iv) 	
      Global Debentures may be transferred at any time after an
      Event of Default has occurred and is continuing with respect to the
      Debentures of the series issued as a Global Debenture, provided that
      Beneficial Holders representing, in the aggregate, not less than 25% of
      the aggregate principal amount of the Debentures of such series advise the
      Depository in writing, through the Depository Participants, that the
      continuation of the book-entry only registration system for such series of
      Debentures is no longer in their best interest and also provided that at
      the time of such transfer the Event of Default has not been waived
      pursuant to Section 8.3;

	 	 	 
	 	(v) 	
      Global Debentures may be transferred or exchanged for
      definitive certificates at any time after a Depository has determined, in
      its sole discretion, that such transfer or exchange is required to effect
      conversion and/or redemption rights in accordance with the terms hereof
      and has communicated such determination to the Trustees in
  writing;

	 	 	 
	 	(vi) 	
      Global Debentures may be transferred if required by
      applicable law; or

	 	 	 
	 	(vii) 	
      Global Debentures may be transferred if the book-entry
      only registration system ceases to exist.

	 	(c) 	
      With respect to the Global Debentures, unless and until
      definitive certificates have been issued to Beneficial Holders pursuant to
      Section 3.2(b):

- 38 - 

	 	(i) 	
      the Corporation and the Trustees may deal with the
      Depository for all purposes (including paying interest on the Debentures)
      as the sole holder of such series of Debentures and the authorized
      representative of the Beneficial Holders;

	 	 	 
	 	(ii) 	
      the rights of the Beneficial Holders shall be exercised
      only through the Depository and shall be limited to those established by
      law and agreements between such Beneficial Holders and the Depository or
      the Depository Participants;

	 	 	 
	 	(iii) 	
      the Depository will make book-entry transfers among the
      Depository Participants; and

	 	 	 
	 	(iv) 	
      whenever this Indenture requires or permits actions to be
      taken based upon instruction or directions of Debentureholders evidencing
      a specified percentage of the outstanding Debentures, the Depository shall
      be deemed to be counted in that percentage only to the extent that it has
      received instructions to such effect from the Beneficial Holders or the
      Depository Participants, and has delivered such instructions to the
      Trustees.

	 	(d) 	
      Whenever a notice or other communication is required to
      be provided to Debentureholders, unless and until definitive
      certificate(s) have been issued to Beneficial Holders pursuant to this
      Section 3.2, the Trustees shall provide all such notices and
      communications to the Depository and the Depository shall deliver such
      notices and communications to such Beneficial Holders in accordance with
      U.S. Securities Laws and Applicable Securities Legislation. Upon the
      termination of the book-entry only registration system on the occurrence
      of one of the conditions specified in Section 3.2(b) with respect to a
      series of Debentures issued hereunder, the Trustees shall notify all
      applicable Depository Participants and Beneficial Holders, through the
      Depository, of the availability of Definitive Debenture certificates. Upon
      surrender by the Depository of the certificate(s) representing the Global
      Debentures and receipt of new registration instructions from the
      Depository, the Trustees shall deliver the Definitive Debenture
      certificates for such Debentures to the holders thereof in accordance with
      the new registration instructions and thereafter, the registration and
      transfer of such Debentures will be governed by Section 3.1 and the
      remaining Sections of this Article 3.

	3.3 	
      Transferee Entitled to
  Registration

The transferee of a Debenture shall be entitled, after the
appropriate form of transfer is lodged with the Trustees or other registrar and
upon compliance with all other conditions in that regard required by this
Indenture or by law, to be entered on the register as the owner of such
Debenture free from all equities or rights of set-off or counterclaim between
the Corporation and the transferor or any previous holder of such Debenture,
save in respect of equities of which the Corporation is required to take notice
by statute or by order of a court of competent jurisdiction. 

- 39 - 

	3.4 	
      No Notice of Trusts

Neither the Corporation nor the Trustees nor any registrar
shall be bound to take notice of or see to the execution of any trust (other
than that created by this Indenture) whether express, implied or constructive,
in respect of any Debenture, and may transfer the same on the direction of the
Person registered as the holder thereof, whether named as trustee or otherwise,
as though that Person were the beneficial owner thereof. 

	3.5 	
      Registers Open for
  Inspection

The registers referred to in Sections 3.1 and 3.2 shall at all
reasonable times be open for inspection by the Corporation, the Trustees or any
Debentureholder. Every registrar, including the Trustees, shall preserve in as
current a form as is reasonably practicable the most recent list available to it
of the names and addresses of holders of Debentures and shall otherwise comply
with Section 312(a) of the Trust Indenture Act. Every registrar, including the
Trustees, shall from time to time when requested so to do by the Corporation or
by the Trustees, in writing, furnish the Corporation or the Trustees, as the
case may be, with a list of names and addresses of holders of registered
Debentures entered on the register kept by them and showing the principal amount
and serial numbers of the Debentures held by each such holder, provided the
Trustees shall be entitled to charge a reasonable fee to provide such a
list.

	3.6 	
      Debentureholder
  Communication

The rights of holders to communicate with other holders with
respect to the Indenture or the Debentures are as provided by the Trust
Indenture Act, and the Corporation and the Trustees shall comply with the
requirements of Section 312(b) of the Trust Indenture Act. Neither the
Corporation nor the Trustees will be held accountable by reason of any
disclosure of information as to names and addresses of holders made pursuant to
the Trust Indenture Act. 

	3.7 	
      Exchanges of
Debentures

	 	(a) 	
      Subject to Sections 3.1, 3.2 and 3.7, Debentures in any
      authorized form or denomination, other than Global Debentures, may be
      exchanged for Debentures in any other authorized form or denomination, of
      the same series and date of maturity, bearing the same interest rate and
      of the same aggregate principal amount as the Debentures so
    exchanged.

	 	 	 
	 	(b) 	
      In respect of exchanges of Debentures permitted by
      Section 3.7(a), Debentures of any series may be exchanged only at the
      principal office of the Trustees or at such other place or places, if any,
      as may be specified in the Debentures of such series and at such other
      place or places as may from time to time be designated by the Corporation
      with the approval of the Trustees. Any Debentures tendered for exchange
      shall be surrendered to the Trustees. The Corporation shall execute and
      the Trustees shall certify all Debentures necessary to carry out exchanges
      as aforesaid. All Debentures surrendered for exchange shall be
      cancelled.

	 	 	 
	 	(c) 	
      Debentures issued in exchange for Debentures which at the
      time of such issue have been selected or called for redemption at a later
      date shall be deemed to have been selected or called for redemption in the same manner and
shall have noted thereon a statement to that effect. 

- 40 - 

	3.8 	
      Closing of
Registers

	 	(a) 	
      Neither the Corporation nor the Trustees nor any
      registrar shall be required to:

	 	(i) 	
      make transfers or exchanges or convert any Definitive
      Debentures on any Interest Payment Date for such Debentures or during the
      five preceding Business Days;

	 	 	 
	 	(ii) 	
      make transfers or exchanges of, or convert any Debentures
      on the day of any selection by the Trustees of Debentures to be redeemed
      or during the five preceding Business Days; or

	 	 	 
	 	(iii) 	
      make exchanges of any Debentures which will have been
      selected or called for redemption unless upon due presentation thereof for
      redemption such Debentures shall not be
redeemed.

	 	(b) 	
      Subject to any restriction herein provided, the
      Corporation with the approval of the Trustees may at any time close any
      register for any series of Debentures, other than those kept at the
      principal office of the Trustees, and transfer the registration of any
      Debentures registered thereon to another register (which may be an
      existing register) and thereafter such Debentures shall be deemed to be
      registered on such other register. Notice of such transfer shall be given
      to the holders of such Debentures.

	3.9 	
      Charges for Registration, Transfer and
      Exchange

For each Debenture exchanged, registered, transferred or
discharged from registration, the Trustees or other registrar, except as
otherwise herein provided, may make a reasonable charge for their services and
in addition may charge a reasonable sum for each new Debenture issued (such
amounts to be agreed upon from time to time by the Trustees and the
Corporation), and payment of such charges and reimbursement of the Trustees or
other registrar for any stamp taxes or governmental or other charges required to
be paid shall be made by the party requesting such exchange, registration,
transfer or discharge from registration as a condition precedent thereto.
Notwithstanding the foregoing provisions, no charge shall be made to a
Debentureholder hereunder: 

	 	(a) 	
      for any exchange of any interim or temporary Debenture or
      interim certificate that has been issued under Section 2.10 for a
      Definitive Debenture;

	 	 	 
	 	(b) 	
      for any exchange of a Global Debenture as contemplated in
      Section 3.2.

	3.10 	
      Ownership of
Debentures

	 	(a) 	
      Prior to the registration of any transfer, the
      Corporation, the Person in whose name any Debenture is registered shall
      for all purposes of this Indenture be and be deemed to be the owner
      thereof and payment of or on account of the principal
of and premium, if any, on such Debenture and interest
  thereon shall be made to such registered holder.

- 41 - 

	 	(b) 	
      The registered holder for the time being of any
      registered Debenture shall be entitled to the principal, premium, if any,
      and/or interest evidenced by such instruments, respectively, free from all
      equities or rights of set-off or counterclaim between the Corporation and
      the original or any intermediate holder thereof and all Persons may act
      accordingly and the receipt of any such registered holder for any such
      principal, premium, if any, or interest shall be a good discharge to the
      Trustees, any registrar and to the Corporation for the same and none shall
      be bound to inquire into the title of any such registered
holder.

	 	 	 
	 	(c) 	
      Where Debentures are registered in more than one name,
      the principal, premium, if any, and interest from time to time payable in
      respect thereof may be paid to the order of all such holders, failing
      written instructions from them to the contrary, and the receipt of any one
      of such holders therefor shall be a valid discharge, to the Trustees, any
      registrar and to the Corporation.

	 	 	 
	 	(d) 	
      In the case of the death of one or more joint holders of
      any Debenture the principal, premium, if any, and interest from time to
      time payable thereon may be paid to the order of the survivor or survivors
      of such registered holders and the receipt of any such survivor or
      survivors therefor shall be a valid discharge to the Trustees and any
      registrar and to the Corporation.

ARTICLE 4 
REDEMPTION AND PURCHASE OF DEBENTURES

	4.1 	
      Applicability of
Article

Subject to regulatory and stock exchange approval, Sections
2.5(d) and 2.5(e) and Article 5, the Corporation shall have the right at its
option to redeem, either in whole at any time or in part from time to time
before maturity, either by payment of money, by issuance of Freely Tradeable
Common Shares as provided in Section 4.6 or any combination thereof, any
Debentures issued hereunder of any series which by their terms are made so
redeemable (subject, however, to any applicable restriction on the redemption of
Debentures of such series) at such rate or rates of premium, if any, and on such
date or dates and in accordance with such other provisions as shall have been
determined at the time of issue of such Debentures and as shall have been
expressed in this Indenture, in the Debentures, in an Officers’ Certificate, or
in a supplemental indenture authorizing or providing for the issue thereof, or
in the case of Additional Debentures issued pursuant to a Periodic Offering, in
the Written Direction of the Corporation requesting the certification and
delivery thereof. 

Subject to regulatory and stock exchange approval and Article
5, the Corporation shall also have the right at its option to repay, either in
whole or in part, on maturity, either by payment of money in accordance with
Section 2.14, by issuance of Freely Tradeable Common Shares as provided in
Section 4.10 or any combination thereof, any Debentures issued hereunder of any
series which by their terms are made so repayable on maturity (subject however,
to any applicable restriction on the repayment of the principal amount of the
Debentures of such series) at such rate or rates of premium, if any, and on such
date or dates and in accordance with such other provisions as shall have been determined at the time of issue of such Debenture and
shall have been expressed in this Indenture, in the Debentures, in an Officers’
Certificate, or in a supplemental indenture authorizing or providing for the
issue thereof, or in the case of Additional Debentures issued pursuant to a
Periodic Offering, in the Written Direction of the Corporation requesting the
certification and delivery thereof. 

- 42 - 

	4.2 	
      Partial Redemption

If less than all the Debentures of any series for the time
being outstanding are at any time to be redeemed, or if a portion of the
Debentures being redeemed are being redeemed for cash and a portion of such
Debentures are being redeemed by the payment of Freely Tradeable Common Shares
pursuant to Section 4.6, the Debentures to be so redeemed shall be selected by
the Trustees on a pro rata basis to the nearest multiple of $1,000 in accordance
with the principal amount of the Debentures registered in the name of each
holder or in such other manner as the Trustees deems equitable, subject to the
approval of the Toronto Stock Exchange or such other exchange on which the
Debentures are then listed, as may be required from time to time. Unless
otherwise specifically provided in the terms of any series of Debentures, no
Debenture shall be redeemed in part unless the principal amount redeemed is
$1,000 or a multiple thereof. For this purpose, the Trustees may make, and from
time to time vary, regulations with respect to the manner in which such
Debentures may be drawn for redemption and regulations so made shall be valid
and binding upon all holders of such Debentures notwithstanding that as a result
thereof one or more of such Debentures may become subject to redemption in part
only or for cash only. In the event that one or more of such Debentures becomes
subject to redemption in part only, upon surrender of any such Debentures for
payment of the Redemption Price, together with interest accrued to but excluding
the Redemption Date, the Corporation shall execute and the Trustees shall
certify and deliver without charge to the holder thereof or upon the holder’s
order one or more new Debentures for the unredeemed part of the principal amount
of the Debenture or Debentures so surrendered or, with respect to a Global
Debenture, the Trustees shall make notations on the Global Debenture of the
principal amount thereof so redeemed. Unless the context otherwise requires, the
terms “Debenture” or “Debentures” as used in this Article 4 shall be deemed to
mean or include any part of the principal amount of any Debenture which in
accordance with the foregoing provisions has become subject to redemption. 

	4.3 	
      Notice of
Redemption

Notice of redemption (the “Redemption Notice”) of any
series of Debentures shall be given to the holders of the Debentures so to be
redeemed not more than 60 days nor less than 30 days prior to the date fixed for
redemption (the “Redemption Date”) in the manner provided in Section
14.2. Every such notice shall specify the aggregate principal amount of
Debentures called for redemption, the Redemption Date, the Redemption Price and
the places of payment and shall state that interest upon the principal amount of
Debentures called for redemption shall cease to be payable from and after the
Redemption Date. In addition, unless all the outstanding Debentures are to be
redeemed, the Redemption Notice shall specify: 

	 	(a) 	
      the distinguishing letters and numbers of the registered
      Debentures which are to be redeemed (or of such thereof as are registered
      in the name of such Debentureholder);

- 43 - 

	 	(b) 	
      in the case of a published notice, the distinguishing
      letters and numbers of the Debentures which are to be redeemed or, if such
      Debentures are selected by terminal digit or other similar system, such
      particulars as may be sufficient to identify the Debentures so
      selected;

	 	 	 
	 	(c) 	
      in the case of a Global Debenture, that the redemption
      will take place in such manner as may be agreed upon by the Depository,
      the Trustees and the Corporation; and

	 	 	 
	 	(d) 	
      in all cases, the principal amounts of such Debentures
      or, if any such Debenture is to be redeemed in part only, the principal
      amount of such part.

In the event that all Debentures to be
redeemed are registered Debentures, publication shall not be required. 

	4.4 	
      Debentures Due on Redemption
  Dates

Notice having been given as aforesaid, all the Debentures so
called for redemption shall thereupon be and become due and payable at the
Redemption Price, together with accrued interest to but excluding the Redemption
Date, on the Redemption Date specified in such notice, in the same manner and
with the same effect as if it were the date of maturity specified in such
Debentures, anything therein or herein to the contrary notwithstanding, and from
and after such Redemption Date, if the monies necessary to redeem, or the Common
Shares to be issued to redeem, such Debentures shall have been deposited as
provided in Section 4.5 and affidavits or other proof satisfactory to the
Trustees as to the publication and/or mailing of such notices shall have been
lodged with them, interest upon the Debentures shall cease. If any question
shall arise as to whether any notice has been given as above provided and such
deposit made, such question shall be decided by the Trustees whose decision
shall be final and binding upon all parties in interest. 

	4.5 	
      Deposit of Redemption Monies or Common
      Shares

Redemption of Debentures shall be provided for by the
Corporation depositing with the Trustees or any paying agent to the order of the
Trustees, on or before 11:00 a.m. (Toronto time) on the Business Day immediately
prior to the Redemption Date specified in such notice, such sums of money, or
certificates representing such Common Shares, or both as the case may be, as may
be sufficient to pay the Redemption Price of the Debentures so called for
redemption, plus accrued and unpaid interest thereon up to but excluding the
Redemption Date, provided the Corporation may elect to satisfy this requirement
by providing the Trustees with a certified cheque or wire transfer for such
amounts required under this Section 4.5 post-dated to the Redemption Date. The
Corporation shall also deposit with the Trustees a sum of money sufficient to
pay any charges or expenses which may be incurred by the Trustees in connection
with such redemption. Every such deposit shall be irrevocable. From the sums so
deposited, or certificates so deposited, or both, the Trustees shall pay or
cause to be paid, or issue or cause to be issued, to the holders of such
Debentures so called for redemption, upon surrender of such Debentures, the
principal, premium (if any) and interest (if any) to which they are respectively
entitled on redemption. 

- 44 - 

	4.6 	
      Right to Repay Redemption Price in Common
      Shares

	 	(a) 	
      Subject to the receipt of any required regulatory and
      stock exchange approvals, Section 2.5(e) and the other provisions of this
      Section 4.6, the Corporation may, at its option, in exchange for or in
      lieu of paying the Redemption Price in money, elect to satisfy its
      obligation to pay all or any portion of the Redemption Price by issuing
      and delivering to holders on the Redemption Date that number of Freely
      Tradeable Common Shares obtained by dividing the aggregate principal
      amount of the outstanding Debentures (or applicable portion thereof to be
      satisfied by the issuance and delivery of Freely Tradeable Common Shares)
      by 95% of the then Current Market Price of the Common Shares on the
      Redemption Date (the “Common Share Redemption Right”); provided
      that, subject to the ability of the Corporation to exercise the Common
      Share Interest Payment Election in accordance with Article 10, all accrued
      and unpaid interest thereon shall be payable to the holder in
  cash.

	 	 	 
	 	(b) 	
      The Corporation shall exercise the Common Share
      Redemption Right by so specifying in the Redemption Notice, which shall be
      delivered to the Trustees and the holders of Debentures not more than 60
      days and not less than 40 days prior to the Redemption Date, and shall
      also specify the aggregate principal amount of Debentures in respect of
      which it is exercising the Common Share Redemption Right in such
      notice.

	 	 	 
	 	(c) 	
      The Corporation’s right to exercise the Common Share
      Redemption Right shall be conditional upon the following conditions being
      met on the Business Day preceding the Redemption
Date:

	 	(i) 	
      the issuance of the Common Shares on the exercise of the
      Common Share Redemption Right shall be made in accordance with U.S.
      Securities Laws and Applicable Securities Legislation and such Common
      Shares shall be issued as Freely Tradeable Common Shares;

	 	 	 
	 	(ii) 	
      such additional Freely Tradeable Common Shares shall be
      listed or conditionally approved for listing on each stock exchange on
      which the Common Shares are then listed, the Toronto Stock Exchange or
      national securities exchange or quoted in an inter-dealer quotation system
      of any registered national securities association;

	 	 	 
	 	(iii) 	
      the Corporation shall be a reporting issuer in good
      standing under Applicable Securities Legislation;

	 	 	 
	 	(iv) 	
      no Event of Default shall have occurred and be
      continuing;

	 	 	 
	 	(v) 	
      the Trustees shall have received an Officers’ Certificate
      stating that conditions (i), (ii), (iii) and (iv) above have been
      satisfied and setting forth the number of Common Shares to be delivered
      for each $1,000 principal amount of Debentures and the Current Market
      Price of the Common Shares on the Redemption Date;
and

- 45 - 

	 	(vi) 	
      the Trustees shall have received an opinion of Counsel to
      the effect that such Common Shares have been duly authorized and, when
      issued and delivered pursuant to the terms of this Indenture in payment of
      the Redemption Price, will be validly issued as fully paid and
      non-assessable, that conditions (i) and (ii) above have been
    satisfied.

If the foregoing conditions are not
satisfied prior to the close of business on the Business Day preceding the
Redemption Date, the Corporation shall pay the Redemption Price entirely in cash
in accordance with Section 4.5 unless the Debentureholder waives the conditions
which are not satisfied. In the event that the Corporation duly exercises its
Common Share Redemption Right, upon presentation and surrender of the Debentures
for payment on the Redemption Date, at any place where a register is maintained
pursuant to Article 3 or any other place specified in the Redemption Notice, the
Corporation shall on or before 11:00 a.m. (Toronto time) on the Business Day
immediately prior to the Redemption Date make the delivery to the Trustees for
delivery to and on account of the holders, of certificates representing the
Freely Tradeable Common Shares to which such holders are entitled. 

	 	(d) 	
      No fractional Freely Tradeable Common Shares shall be
      delivered upon the exercise of the Common Share Redemption Right but, in
      lieu thereof, the Corporation shall pay to the Trustees for the account of
      the holders, at the time contemplated in this Section 4.6, the cash
      equivalent thereof determined on the basis of the Current Market Price of
      the Common Shares on the Redemption Date, provided, however, that the
      Corporation shall not be required to make any payment of less than
      $5.00.

	 	 	 
	 	(e) 	
      A holder shall be treated as the shareholder of record of
      the Freely Tradeable Common Shares issued on due exercise by the
      Corporation of its Common Share Redemption Right effective immediately
      after the close of business on the Redemption Date, and shall be entitled
      to all substitutions therefor, all income earned thereon or accretions
      thereto and all dividends or distributions (including distributions and
      dividends in kind) thereon and arising thereafter, and in the event that
      the Trustees receives the same, they shall hold the same in trust for the
      benefit of such holder.

	 	 	 
	 	(f) 	
      The Corporation shall at all times reserve and keep
      available out of its authorized Common Shares (if the number thereof is or
      becomes limited), solely for the purpose of issue and delivery upon the
      exercise of the Corporation’s Common Share Redemption Right as provided
      herein, and shall issue to Debentureholders to whom Freely Tradeable
      Common Shares will be issued pursuant to exercise of the Common Share
      Redemption Right, such number of Freely Tradeable Common Shares as shall
      be issuable in such event. All Freely Tradeable Common Shares which shall
      be so issuable shall be duly and validly issued as fully paid and non-
      assessable.

	 	 	 
	 	(g) 	
      The Corporation shall comply with all U.S. Securities
      Laws and Applicable Securities Legislation regulating the issue and
      delivery of Freely Tradeable Common Shares upon exercise of the Common
      Share Redemption Right and shall cause to be listed and posted for trading such Common
      Shares on each stock exchange on which the Common Shares are then
  listed.

- 46 - 

	 	(h) 	
      The Corporation shall from time to time promptly pay, or
      make provision satisfactory to the Trustees for the payment of, all taxes
      and charges which may be imposed by the laws of Canada or any province
      thereof (except income tax, if any) which shall be payable with respect to
      the issuance or delivery of Freely Tradeable Common Shares to holders upon
      exercise of the Common Share Redemption Right pursuant to the terms of the
      Debentures and of this Indenture.

	4.7 	
      Failure to Surrender Debentures Called for
      Redemption

In case the holder of any Debenture so called for redemption
shall fail on or before the Redemption Date to so surrender such holder’s
Debenture, or shall not within such time accept payment of the redemption monies
payable, or take delivery of certificates representing such Common Shares
issuable in respect thereof, or give such receipt therefor, if any, as the
Trustees may require, such redemption monies may be set aside in trust, or such
certificates may be held in trust without interest, either in the deposit
department of the Trustees or in a chartered bank, and such setting aside shall
for all purposes be deemed a payment to the Debentureholder of the sum or Common
Shares so set aside and, to that extent, the Debenture shall thereafter not be
considered as outstanding hereunder and the Debentureholder shall have no other
right except to receive payment out of the monies so paid and deposited, or take
delivery of the certificates so deposited, or both, upon surrender and delivery
of such holder’s Debenture of the Redemption Price, as the case may be, of such
Debenture, plus any accrued but unpaid interest thereon to but excluding the
Redemption Date. In the event that any money, or certificates representing
Common Shares, required to be deposited hereunder with the Trustees or any
depository or paying agent on account of principal, premium, if any, or
interest, if any, on Debentures issued hereunder shall remain so deposited for a
period of five years less one day from the Redemption Date, then such monies or
certificates representing Common Shares, together with any distribution paid
thereon, shall at the end of such period be paid over or delivered over by the
Trustees or such depository or paying agent to the Corporation on its demand,
and thereupon the Trustees shall not be responsible to Debentureholders for any
amounts owing to them and, subject to applicable law, thereafter the holder of a
Debenture in respect of which such money was so repaid to the Corporation shall
have no rights in respect thereof except to obtain payment of the money or
certificates due from the Corporation, subject to any limitation period provided
by the laws of Ontario. Notwithstanding the foregoing, the Trustees will pay any
remaining funds prior to the expiry of five years less one day after the
Redemption Date to the Corporation upon receipt from the Corporation, of an
unconditional letter of credit denominated and payable in the currency or
currency unit in which the Debentures are payable and in an amount equal to or
in excess of the amount of the remaining funds. If the remaining funds are paid
to the Corporation prior to the expiry of five years less one day after the
Redemption Date, the Corporation shall reimburse the Trustees for any amounts
required to be paid by the Trustees to a holder of a Debenture pursuant to the
redemption after the date of such payment of the remaining funds to the
Corporation but prior to five years less one day after the redemption. 

- 47 - 

	4.8 	
      Cancellation of Debentures
  Redeemed

Subject to the provisions of Sections 4.2 and 4.9 as to
Debentures redeemed or purchased in part, all Debentures redeemed and paid under
this Article 4 shall forthwith be delivered to the Trustees and cancelled and no
Debentures shall be issued in substitution for those redeemed. 

	4.9 	
      Purchase of Debentures by the
      Corporation

Unless otherwise specifically provided with respect to a
particular series of Debentures, the Corporation may, if it is not at the time
in default hereunder, at any time and from time to time, purchase Debentures in
the market (which shall include purchases from or through an investment dealer
or a firm holding membership on a recognized stock exchange) or by tender or by
contract or otherwise, at any price. All Debentures so purchased will be
delivered to the Trustees and shall be cancelled and no Debentures shall be
issued in substitution therefor. 

If, upon an invitation for tenders, more Debentures are
tendered at the same lowest price than the Corporation is prepared to accept,
the Debentures to be purchased by the Corporation shall be selected by the
Trustees on a pro rata basis or in such other manner as consented to by the
Toronto Stock Exchange or such other exchange on which the Debentures are then
listed which the Trustees consider appropriate, or in accordance with
requirements, policies or procedures of the Depository, if applicable, from the
Debentures tendered by each tendering Debentureholder who tendered at such
lowest price. For this purpose the Trustees may make, and from time to time
amend, regulations with respect to the manner in which Debentures may be so
selected, and regulations so made shall be valid and binding upon all
Debentureholders, notwithstanding the fact that as a result thereof one or more
of such Debentures become subject to purchase in part only. The holder of a
Debenture of which a part only is purchased, upon surrender of such Debenture
for payment, shall be entitled to receive, without expense to such holder, one
or more new Debentures for the unpurchased part so surrendered, and the Trustees
shall certify and deliver such new Debenture or Debentures upon receipt of the
Debenture so surrendered or, with respect to a Global Debenture, the Trustees
shall make notations on the Global Debenture of the principal amount thereof so
purchased. 

	4.10 	
      Right to Repay Principal Amount in Common
      Shares

	 	(a) 	
      Subject to the receipt of any required regulatory and
      stock exchange approvals and the other provisions of this Section 4.10,
      the Corporation may, at its option, in exchange for or in lieu of repaying
      the Debentures in money, elect to satisfy its obligation to repay the
      principal amount of all or any portion of the principal amount of the
      Debentures outstanding, by issuing and delivering to holders on the
      Maturity Date of such Debentures that number of Freely Tradeable Common
      Shares obtained by dividing the principal amount of the Debentures (or
      applicable portion thereof to be satisfied by the issuance and delivery of
      Freely Tradeable Common Shares) by 95% of the then Current Market Price of
      the Common Shares on the Maturity Date (the “Common Share Repayment
      Right”); provided that all accrued and unpaid interest thereon shall
      be payable to the holder in cash.

	 	 	 
	 	(b) 	
      The Corporation shall exercise the Common Share Repayment
      Right by so specifying in the Maturity Notice, which shall be delivered to
      the Trustees and the holders of Debentures not more than 60 days and not
      less than 40 days prior to the Maturity Date, and which shall also specify the aggregate
      principal amount of Debentures in respect of which it is exercising the
  Common Share Repayment Right on the Maturity Date.

- 48 - 

	 	(c) 	
      The Corporation’s right to exercise the Common Share
      Repayment Right shall be conditional upon the following conditions being
      met on the Business Day preceding the Maturity
Date:

	 	(i) 	
      the issuance of the Common Shares on the exercise of the
      Common Share Repayment Right shall be made in accordance with U.S.
      Securities Laws and Applicable Securities Legislation and such Common
      Shares shall be issued as Freely Tradeable Common Shares;

	 	 	 
	 	(ii) 	
      such additional Freely Tradeable Common Shares shall be
      listed or conditionally approved for listing on each stock exchange on
      which the Common Shares are then listed, the Toronto Stock Exchange, a
      national securities exchange or quoted in an inter-dealer quotation system
      of any registered national securities association;

	 	 	 
	 	(iii) 	
      the Corporation shall be a reporting issuer in good
      standing under Applicable Securities Legislation in at least one
      jurisdiction of Canada;

	 	 	 
	 	(iv) 	
      no Event of Default shall have occurred and be
      continuing;

	 	 	 
	 	(v) 	
      the Trustees shall have received an Officers’ Certificate
      stating that conditions (i), (ii), (iii) and (iv) above have been
      satisfied and setting forth the number of Common Shares to be delivered
      for each $1,000 principal amount of Debentures and the Current Market
      Price of the Common Shares on the Maturity Date; and

	 	 	 
	 	(vi) 	
      the Trustees shall have received an opinion of Counsel to
      the effect that such Common Shares have been duly authorized and, when
      issued and delivered pursuant to the terms of this Indenture in payment of
      the principal amount of the Debentures outstanding will be validly issued
      as fully paid and non-assessable, that conditions (i) and (ii) above have
      been satisfied.

If the foregoing conditions are not
satisfied prior to the close of business on the Business Day preceding the
Maturity Date, the Corporation shall pay the principal amount of the Debentures
outstanding entirely in cash in accordance with Section 2.14, unless the
Debentureholder waives the conditions which are not satisfied. The Corporation
may not change the form of components or percentages of consideration to be paid
for the Debentures once it has given the notice required to be given to
Debentureholders hereunder, except as described in the preceding sentence. When
the Corporation determines the actual number of Common Shares to be issued
pursuant to the exercise of its Common Share Repayment Right, it will issue a
press release on a national newswire disclosing the Current Market Price and
such actual number of Common Shares. 

- 49 - 

	 	(d) 	
      In the event that the Corporation duly exercises its
      Common Share Repayment Right, upon presentation and surrender of the
      Debentures for payment on the Maturity Date, at any place where a register
      is maintained pursuant to Article 3 or any other place specified in the
      Maturity Notice, the Corporation shall on or before 11:00 a.m. (Toronto
      time) on the Business Day immediately prior to the Maturity Date make the
      delivery to the Trustees for delivery to and on account of the holders, of
      certificates representing the Freely Tradeable Common Shares to which such
      holders are entitled. The Corporation shall also deposit with the Trustees
      a sum of money sufficient to pay any charges or expenses which may be
      incurred by the Trustees in connection with the Common Share Repayment
      Right. Every such deposit shall be irrevocable. From the certificates so
      deposited in addition to amounts payable by the Trustees pursuant to
      Section 2.14, the Trustees shall pay or cause to be paid, to the holders
      of such Debentures, upon surrender of such Debentures, the principal
      amount of and premium (if any) on the Debentures to which they are
      respectively entitled on maturity and deliver to such holders the
      certificates to which such holders are entitled. The delivery of such
      certificates to the Trustees will satisfy and discharge the liability of
      the Corporation for the Debentures to which the delivery of certificates
      relates to the extent of the amount delivered (plus the amount of any
      certificates sold to pay applicable taxes in accordance with this Section
      4.10) and such Debentures will thereafter to that extent not be considered
      as outstanding under this Indenture and such holder will have no other
      right in regard thereto other than to receive out of the certificates so
      delivered, the certificate(s) to which it is entitled.

	 	 	 
	 	(e) 	
      No fractional Freely Tradeable Common Shares shall be
      delivered upon the exercise of the Common Share Repayment Right but, in
      lieu thereof, the Corporation shall pay to the Trustees for the account of
      the holders, at the time contemplated in Section 4.10(d), the cash
      equivalent thereof determined on the basis of the Current Market Price of
      the Common Shares on the Maturity Date, provided, however, that the
      Corporation shall not be required to make any payment of less than
      $5.00.

	 	 	 
	 	(f) 	
      A holder shall be treated as the shareholder of record of
      the Freely Tradeable Common Shares issued on due exercise by the
      Corporation of its Common Share Repayment Right effective immediately
      after the close of business on the Maturity Date, and shall be entitled to
      all substitutions therefor, all income earned thereon or accretions
      thereto and all dividends or distributions (including distributions and
      dividends in kind) thereon and arising thereafter, and in the event that
      the Trustees receives the same, they shall hold the same in trust for the
      benefit of such holder.

	 	 	 
	 	(g) 	
      The Corporation shall at all times reserve and keep
      available out of its authorized Common Shares (if the number thereof is or
      becomes limited), solely for the purpose of issue and delivery upon the
      exercise of the Corporation’s Common Share Repayment Right as provided
      herein, and shall issue to Debentureholders to whom Freely Tradeable
      Common Shares will be issued pursuant to exercise of the Common Share
      Repayment Right, such number of Freely Tradeable Common Shares as shall be
      issuable in such event. All Freely Tradeable Common
  Shares which shall be so issuable shall be duly and validly
  issued as fully paid and non- assessable.

- 50 - 

	 	(h) 	
      The Corporation shall comply with all Applicable
      Securities Legislation and U.S. Securities Laws regulating the issue and
      delivery of Freely Tradeable Common Shares upon exercise of the Common
      Share Repayment Right and shall cause to be listed and posted for trading
      such Freely Tradeable Common Shares on each stock exchange on which the
      Common Shares are then listed.

	 	 	 
	 	(i) 	
      The Corporation shall from time to time promptly pay, or
      make provision satisfactory to the Trustees for the payment of, all taxes
      and charges which may be imposed by the laws of Canada or any province
      thereof (except income tax, if any) which shall be payable with respect to
      the issuance or delivery of Freely Tradeable Common Shares to holders upon
      exercise of the Common Share Repayment Right pursuant to the terms of the
      Debentures and of this Indenture.

ARTICLE 5 
SUBORDINATION OF DEBENTURES 

	5.1 	
      Applicability of
Article

The indebtedness, liabilities and obligations of the
Corporation hereunder (except as provided in Section 15.16) or under the
Debentures, whether on account of principal, premium, if any, interest or
otherwise, but excluding the issuance of Common Shares upon any conversion
pursuant to Article 6, upon any redemption pursuant to Article 4, or at maturity
pursuant to Article 4 (collectively, the “Debenture Liabilities”), shall
be subordinated and postponed and subject in right of payment, to the extent and
in the manner hereinafter set forth in the following Sections of this Article 5,
to the full and final payment of all Senior Indebtedness, and each holder of any
such Debenture by his acceptance thereof agrees to and shall be bound by the
provisions of this Article 5; provided that the Trustees’ rights to
compensation, reimbursement of expenses and indemnification under Section 15.9
are not subordinated to the payment of Senior Indebtedness. 

	5.2 	
      Order of Payment

In the event of any insolvency or bankruptcy proceedings, or
any receivership, liquidation, reorganization or other similar proceedings
relative to the Corporation, or to its property or assets, or in the event of
any proceedings for voluntary liquidation, dissolution or voluntary winding-up
of the Corporation, whether or not involving insolvency or bankruptcy, or any
marshalling of the assets and liabilities of the Corporation: 

	 	(a) 	
      all Senior Indebtedness shall first be paid in full, or
      provision made for such payment, before any payment is made on account of
      Debenture Liabilities;

	 	 	 
	 	(b) 	
      any payment or distribution of assets of the Corporation,
      whether in cash, property or securities, to which the holders of the
      Debentures or the Trustees on behalf of such holders would be entitled
      except for the provisions of this Article 5, shall be paid or delivered by
      the trustee in bankruptcy, receiver, assignee for the benefit of
      creditors, or other liquidating agent making such payment or distribution,
      directly to the holders of Senior Indebtedness or their
      representative or representatives, or to the trustee or trustees under any
      indenture pursuant to which any instruments evidencing any of such Senior
      Indebtedness may have been issued, to the extent necessary to pay all
      Senior Indebtedness in full after giving effect to any concurrent payment
      or distribution, or provision therefor, to the holders of such Senior
  Indebtedness;

- 51 - 

	 	(c) 	
      the Senior Creditors or a receiver or a receiver-manager
      of the Corporation or of all or part of its assets or any other
      enforcement agent may sell, mortgage or otherwise dispose of the
      Corporation’s assets in whole or in part, free and clear of all Debenture
      Liabilities and without the approval of the Debentureholders or the
      Trustees or any requirement to account to the Trustees or the
      Debentureholders; and

	 	 	 
	 	(d) 	
      the rights and priority of the Senior Indebtedness and
      the subordination pursuant hereto shall not be affected
  by:

	 	(i) 	
      whether or not the Senior Indebtedness is
  secured;

	 	 	 
	 	(ii) 	
      the time, sequence or order of creating, granting,
      executing, delivering of, or registering, perfecting or failing to
      register or perfect any security notice, caveat, financing statement or
      other notice in respect of the Senior Security;

	 	 	 
	 	(iii) 	
      the time or order of the attachment, perfection or
      crystallization of any security constituted by the Senior
  Security;

	 	 	 
	 	(iv) 	
      the taking of any collection, enforcement or realization
      proceedings pursuant to the Senior Security;

	 	 	 
	 	(v) 	
      the date of obtaining of any judgment or order of any
      bankruptcy court or any court administering bankruptcy, insolvency or
      similar proceedings as to the entitlement of the Senior Creditors, or any
      of them or the Debentureholders or any of them to any money or property of
      the Corporation;

	 	 	 
	 	(vi) 	
      the failure to exercise any power or remedy reserved to
      the Senior Creditors under the Senior Security or to insist upon a strict
      compliance with any terms thereof;

	 	 	 
	 	(vii) 	
      whether any Senior Security is now perfected, hereafter
      ceases to be perfected, is avoidable by any trustee in bankruptcy or like
      official or is otherwise set aside, invalidated or lapses;

	 	 	 
	 	(viii) 	
      the date of giving or failing to give notice to or making
      demand upon the Corporation; or

	 	 	 
	 	(ix) 	
      any other matter whatsoever.

- 52 - 

	5.3 	
      Subrogation to Rights of Holders of Senior
      Indebtedness

Subject to the prior payment in full of all Senior
Indebtedness, the holders of the Debentures shall be subrogated to the rights of
the holders of Senior Indebtedness to receive payments or distributions of
assets of the Corporation to the extent of the application thereto of such
payments or other assets which would have been received by the holders of the
Debentures but for the provisions hereof until the principal of, premium, if
any, and interest on the Debentures shall be paid in full, and no such payments
or distributions to the holders of the Debentures of cash, property or
securities, which otherwise would be payable or distributable to the holders of
the Senior Indebtedness, shall, as between the Corporation, its creditors other
than the holders of Senior Indebtedness, and the holders of Debentures, be
deemed to be a payment by the Corporation to the holders of the Senior
Indebtedness or on account of the Senior Indebtedness, it being understood that
the provisions of this Article 5 are and are intended solely for the purpose of
defining the relative rights of the holders of the Debentures, on the one hand,
and the holders of Senior Indebtedness, on the other hand. 

The Trustees, for themselves and on behalf of each of the
Debentureholders, hereby waive any and all rights to require a Senior Creditor
to pursue or exhaust any rights or remedies with respect to the Corporation or
any property and assets subject to any Senior Security or in any other manner to
require the orderly disposition of property, assets or security in connection
with the exercise by the Senior Creditors of any rights, remedies or recourses
available to them. 

	5.4 	
      Obligation to Pay Not
  Impaired

Nothing contained in this Article 5 or elsewhere in this
Indenture or in the Debentures is intended to or shall impair, as between the
Corporation, its creditors other than the holders of Senior Indebtedness, and
the holders of the Debentures, the obligation of the Corporation, which is
absolute and unconditional, to pay to the holders of the Debentures the
principal of, premium, if any, and interest on the Debentures, as and when the
same shall become due and payable in accordance with their terms, or affect the
relative rights of the holders of the Debentures and creditors of the
Corporation other than the holders of the Senior Indebtedness, nor shall
anything herein or therein prevent the Trustees or the holder of any Debenture
from exercising all remedies otherwise permitted by applicable law upon default
under this Indenture, subject to the rights, if any, under this Article 5 of the
holders of Senior Indebtedness. 

	5.5 	
      No Payment if Senior Indebtedness in
      Default

Upon the maturity of any Senior Indebtedness by lapse of time,
acceleration or otherwise, or any other enforcement of any Senior Indebtedness,
then, except as provided in Section 5.8, all such Senior Indebtedness shall
first be paid in full, or shall first have been duly provided for, before any
payment is made on account of the Debenture Liabilities. 

In case of a circumstance constituting a default or event of
default with respect to any Senior Indebtedness permitting (whether at that time
or upon notice, lapse of time, or satisfaction of any other condition precedent)
a Senior Creditor to demand payment or accelerate the maturity thereof where the
notice of such default or event of default has been given by or on behalf of the
holders of Senior Indebtedness to the Corporation or the Corporation otherwise
has knowledge thereof, unless and until such default or event of default shall
have been cured or waived or shall have ceased to exist, no payment (by purchase
of Debentures or otherwise) shall be made by the Corporation (except as provided in Section 5.8) with respect to
the Debenture Liabilities and neither the Trustees nor the holders of Debentures
shall be entitled to demand, institute proceedings for the collection of (which
shall, for certainty include proceedings related to an adjudication or
declaration as to the insolvency or bankruptcy of the Corporation and other
similar creditor proceedings), or receive any payment or benefit (including
without limitation by set-off, combination of accounts or otherwise in any
manner whatsoever) on account of the Debentures after the happening of such a
default or event of default (except as provided in Section 5.8), and unless and
until such default or event of default shall have been cured or waived or shall
have ceased to exist, such payments shall be held in trust for the benefit of,
and, if and when such Senior Indebtedness shall have become due and payable,
shall be paid over to, the holders of the Senior Indebtedness or their
representative or representatives or to the trustee or trustees under any
indenture under which any instruments evidencing an amount of the Senior
Indebtedness remaining unpaid until all such Senior Indebtedness shall have been
paid in full, after giving effect to any concurrent payment or distribution to
the holders of such Senior Indebtedness. 

- 53 - 

The fact that any payment hereunder is prohibited by this
Section 5.5 shall not prevent the failure to make such payment from being an
Event of Default hereunder. 

	5.6 	
      Payment on Debentures
  Permitted

Nothing contained in this Article 5 or elsewhere in this
Indenture, or in any of the Debentures, shall affect the obligation of the
Corporation to make, or prevent the Corporation from making, at any time except
as prohibited by Sections 5.2 or 5.5, any payment of principal of or, premium,
if any, or interest on the Debentures. The fact that any such payment is
prohibited by Sections 5.2 or 5.5 shall not prevent the failure to make such
payment from being an Event of Default hereunder. Nothing contained in this
Article 5 or elsewhere in this Indenture, or in any of the Debentures, shall
prevent the conversion of the Debentures or, except as prohibited by Sections
5.2 or 5.5, the application by the Trustees of any monies deposited with the
Trustees hereunder for the purpose, to the payment of or on account of the
Debenture Liabilities. 

	5.7 	
      Confirmation of
  Subordination

Each holder of Debentures by his acceptance thereof authorizes
and directs the Trustees on his behalf to take such action as may be necessary
or appropriate to effect the subordination as provided in this Article 5 and
appoints the Trustees his attorney-in-fact for any and all such purposes. Upon
request of the Corporation, and upon being furnished an Officers’ Certificate
stating that one or more named Persons are Senior Creditors and specifying the
amount and nature of the Senior Indebtedness of such Senior Creditor, the
Trustees shall enter into a written agreement or agreements with the Corporation
and the Person or Persons named in such Officers’ Certificate providing that
such Person or Persons are entitled to all the rights and benefits of this
Article 5 as a Senior Creditor and for such other matters, such as an agreement
not to amend the provisions of this Article 5 and the definitions herein without
the consent of such Senior Creditor, as the Senior Creditor may reasonably
request. Such agreement shall be conclusive evidence that the indebtedness
specified therein is Senior Indebtedness, however, nothing herein shall impair
the rights of any Senior Creditor who has not entered into such an agreement.

- 54 - 

	5.8 	
      Knowledge of
Trustees

Notwithstanding the provisions of this Article 5 or any
provision in this Indenture or in the Debentures contained, the Trustees will
not be charged with knowledge of any Senior Indebtedness or of any default in
the payment thereof, or of the existence of any Event of Default or any other
fact that would prohibit the making of any payment of monies to or by the
Trustees, or the taking of any other action by the Trustees, unless and until
the a responsible officer of a Trustee has received written notice thereof from
the Corporation, any Debentureholder or any Senior Creditor. 

	5.9 	
      Trustees May Hold Senior
  Indebtedness

Subject to Section 15.5, the Trustees are entitled to all the
rights set forth in this Article 5 with respect to any Senior Indebtedness at
the time held by them, to the same extent as any other holder of Senior
Indebtedness, and nothing in this Indenture deprives the Trustees of any of
their rights as a holder.

	5.10 	
      Rights of Holders of Senior Indebtedness Not
      Impaired

No right of any present or future holder of any Senior
Indebtedness to enforce the subordination herein will at any time or in any way
be prejudiced or impaired by any act or failure to act on the part of the
Corporation or by any non-compliance by the Corporation with the terms,
provisions and covenants of this Indenture, regardless of any knowledge thereof
which any such holder may have or be otherwise charged with. 

	5.11 	
      Altering the Senior
  Indebtedness

The holders of the Senior Indebtedness have the right to
extend, renew, modify or amend the terms of the Senior Indebtedness or any
security therefor and to release, sell or exchange such security and otherwise
to deal freely with the Corporation, all without notice to or consent of the
Debentureholders or the Trustees and without affecting the liabilities and
obligations of the parties to this Indenture or the Debentureholders. 

	5.12 	
      Additional
Indebtedness

This Indenture does not restrict the Corporation from incurring
additional indebtedness for borrowed money or other obligations or liabilities
(including Senior Indebtedness) or mortgaging, pledging or charging its
properties to secure any indebtedness or obligations or liabilities. 

	5.13 	
      Right of Debentureholder to Convert Not
      Impaired

The subordination of the Debentures to the Senior Indebtedness
and the provisions of this Article 5 do not impair in any way the right of a
Debentureholder to convert its Debentures pursuant to Article 6. 

	5.14 	
      Invalidated
Payments

In the event that any of the Senior Indebtedness shall be paid
in full and subsequently, for whatever reason, such formerly paid or satisfied
Senior Indebtedness becomes unpaid or unsatisfied, the terms and conditions of
this Article 5 shall be reinstated and the provisions of this Article 5 shall again be operative until all Senior
Indebtedness is repaid in full, provided that such reinstatement shall not give
the Senior Creditors any rights or recourses against the Trustees or the
Debentureholders for amounts paid to the Debentureholders subsequent to such
payment or satisfaction in full and prior to such reinstatement. 

- 55 - 

	5.15 	
      Contesting Security

The Trustees, for themselves and on behalf of the
Debentureholders, agrees that they shall not contest or bring into question the
validity, perfection or enforceability of any of the Senior Indebtedness, the
Senior Security, or the relative priority of the Senior Security. 

	5.16 	
      Trustees Not Fiduciaries for Holders of Senior
      Indebtedness

The Trustees shall not be deemed to owe any fiduciary duty to
the holders of Senior Indebtedness and shall not be liable to any such holders
if the Trustees shall in good faith mistakenly pay over or distribute to holders
of Debentures or to the Corporation or to any other person cash, property or
securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article or otherwise. With respect to the holders of Senior
Indebtedness, the Trustees undertake to perform or to observe only such of its
covenants or obligations as are specifically set forth in this Article Five and
no implied covenants or obligations with respect to holders of Senior
Indebtedness shall be read into this Indenture against the Trustees.

ARTICLE 6 
CONVERSION OF DEBENTURES 

	6.1 	
      Applicability of
Article

Any Debentures issued hereunder of any series which by their
terms are convertible (subject, however, to any applicable restriction of the
conversion of Debentures of such series) will be convertible into Common Shares
or other securities of the Corporation (subject to applicable restrictions on
transfer imposed by U.S. Securities Laws), at such conversion rate or rates, and
on such date or dates and in accordance with such other provisions as shall have
been determined at the time of issue of such Debentures and shall have been
expressed in this Indenture (including Sections 2.5(f), 2.5(j) and 3.7 hereof),
in such Debentures, in an Officers’ Certificate, or in a supplemental indenture
authorizing or providing for the issue thereof. 

Such right of conversion shall extend only to the maximum
number of whole Common Shares into which the aggregate principal amount of the
Debenture or Debentures surrendered for conversion at any one time by the holder
thereof may be converted. Fractional interests in Common Shares shall be
adjusted for in the manner provided in Section 6.6. 

	6.2 	
      Notice of Expiry of Conversion
    Privilege

Notice of the expiry of the conversion privileges of the
Debentures shall be given by or on behalf of the Corporation, not more than 60
days and not less than 40 days prior to the date fixed for the Time of Expiry,
in the manner provided for in Section 14.2. 

- 56 - 

	6.3 	
      Revival of Right to
  Convert

If the redemption of any Debenture called for redemption by the
Corporation is not made or the payment of the purchase price of any Debenture
which has been tendered in acceptance of an offer by the Corporation to purchase
Debentures for cancellation is not made, in the case of a redemption upon due
surrender of such Debenture or in the case of a purchase on the date on which
such purchase is required to be made, as the case may be, then, provided the
Time of Expiry has not passed, the right to convert such Debentures shall revive
and continue as if such Debenture had not been called for redemption or tendered
in acceptance of the Corporation’s offer, respectively. 

	6.4 	
      Manner of Exercise of Right to
    Convert

	 	(a) 	
      The holder of a Debenture desiring to convert such
      Debenture in whole or in part into Common Shares shall surrender such
      Debenture to the Canadian Trustee at its principal office in Toronto,
      Ontario, together with the conversion notice attached hereto as Schedule
      “D” or any other written notice in a form satisfactory to the Trustees, in
      either case duly executed by the holder or his executors or administrators
      or other legal representatives or his or their attorney duly appointed by
      an instrument in writing in form and executed in a manner satisfactory to
      the Trustees, exercising his right to convert such Debenture in accordance
      with the provisions of this Article 6; provided that with respect to a
      Global Debenture, the obligation to surrender a Debenture to the Canadian
      Trustee shall be satisfied if the Canadian Trustee makes notation on the
      Global Debenture of the principal amount thereof so converted and the
      Trustees are provided with all other documentation which they may request.
      Thereupon such Debentureholder or, subject to payment of all applicable
      stamp or security transfer taxes or other governmental charges and
      compliance with all reasonable requirements of the Trustees, his
      nominee(s) or assignee(s) shall be entitled to be entered in the books of
      the Corporation as at the Date of Conversion (or such later date as is
      specified in Section 6.4(b)) as the holder of the number of Common Shares
      into which such Debenture is convertible in accordance with the provisions
      of this Article 6 and, as soon as practicable thereafter, the Corporation
      shall deliver to such Debentureholder or, subject as aforesaid, his
      nominee(s) or assignee(s), a certificate or certificates for such Common
      Shares.

	 	 	 
	 	(b) 	
      For the purposes of this Article, a Debenture shall be
      deemed to be surrendered for conversion on the date (herein called the
      “Date of Conversion”) on which it is so surrendered when the register of
      the Trustees are open and in accordance with the provisions of this
      Article 6 or, in the case of a Global Debenture which the Trustees
      received notice of and all necessary documentation in respect of the
      exercise of the conversion rights and, in the case of a Debenture so
      surrendered by post or other means of transmission, on the date on which
      it is received by the Trustees at one of their principal offices specified
      in Section 6.4(a); provided that if a Debenture is surrendered for
      conversion on a day on which the register of Common Shares or Debentures
      is closed, the Person or Persons entitled to receive Common Shares shall
      become the holder or holders of record of such Common Shares as at the
      date on which such registers are next
reopened.

- 57 - 

	 	(c) 	
      Any part, being $1,000 or an integral multiple thereof,
      of a Debenture in a denomination in excess of $1,000 may be converted as
      provided in this Article 6 and all references in this Indenture to
      conversion of Debentures shall be deemed to include conversion of such
      parts.

	 	 	 
	 	(d) 	
      The holder of any Debenture of which only a part is
      converted shall, upon the exercise of his right of conversion surrender
      such Debenture to the Canadian Trustee in accordance with Section 6.4(a),
      and the Canadian Trustee shall cancel the same and shall without charge
      forthwith certify and deliver to the holder a new Debenture or Debentures
      in an aggregate principal amount equal to the unconverted part of the
      principal amount of the Debenture so surrendered or, with respect to a
      Global Debenture, the Canadian Trustee shall make notations on the Global
      Debentures of the principal amount thereof so converted.

	 	 	 
	 	(e) 	
      Holders converting Debentures shall receive accrued and
      unpaid interest thereon from the period of the last Interest Payment Date
      prior to the Date of Conversion to the date that is one Business Day prior
      to the Date of Conversion. The Common Shares issued upon such conversion
      shall rank only in respect of distributions or dividends declared in
      favour of shareholders of record on and after the Date of Conversion or
      such later date as such holder shall become the holder of record of such
      Common Shares pursuant to Section 6.4(b), from which applicable date they
      will for all purposes be and be deemed to be issued and outstanding as
      fully paid and non-assessable Common Shares.

	6.5 	
      Adjustment of Conversion
  Price

	 	(a) 	
      If and whenever at any time prior to the Time of Expiry
      the Corporation shall (i) subdivide or redivide the outstanding Common
      Shares into a greater number of shares, (ii) reduce, combine or
      consolidate the outstanding Common Shares into a smaller number of shares,
      or (iii) issue Common Shares to the holders of all or substantially all of
      the outstanding Common Shares by way of a dividend or distribution (other
      than the issue of Common Shares to holders of Common Shares who have
      elected to receive dividends or distributions in the form of Common Shares
      in lieu of cash dividends or cash distributions paid in the ordinary
      course on the Common Shares), the Conversion Price in effect on the
      effective date of such subdivision, redivision, reduction, combination or
      consolidation or on the record date for such issue of Common Shares by way
      of a dividend or distribution, as the case may be, shall in the case of
      any of the events referred to in (i) and (iii) above be decreased in
      proportion to the number of outstanding Common Shares resulting from such
      subdivision, redivision or dividend, or shall, in the case of any of the
      events referred to in (ii) above, be increased in proportion to the number
      of outstanding Common Shares resulting from such reduction, combination or
      consolidation. Such adjustment shall be made successively whenever any
      event referred to in this Section 6.5(a) shall occur. Any such issue of
      Common Shares by way of a dividend or distribution shall be deemed to have
      been made on the record date for the dividend or distribution for the
      purpose of calculating the number of outstanding Common Shares under
      subsections (c) and (d) of this Section 6.5.

- 58 - 

	 	(b) 	
      If and whenever at any time prior to the Time of Expiry
      the Corporation shall fix a record date for the payment of a cash dividend
      or distribution to the holders of all or substantially all of the
      outstanding Common Shares in respect of any Applicable Period, the
      Conversion Price shall be adjusted immediately after such record date so
      that they shall be equal to the price determined by multiplying the
      Conversion Price in effect on such record date by a fraction, of which the
      denominator shall be the Current Market Price per Common Share on such
      record date and of which the numerator shall be the Current Market Price
      per Common Share on such record date minus the amount in cash per Common
      Share distributed to holders of Common Shares, provided that the
      Conversion Price so adjusted is not less than $2.60, which represents the
      closing trading price of the Common Shares on the Toronto Stock Exchange
      on July 4, 2016, less the maximum permitted discount pursuant to the
      policies of the Toronto Stock Exchange. Such adjustment shall be made
      successively whenever such a record date is fixed. To the extent that any
      such cash dividend or distribution is not paid, the Conversion Price shall
      be re-adjusted to the Conversion Price which would then be in effect if
      such record date had not been fixed.

	 	 	 
	 	(c) 	
      If and whenever at any time prior to the Time of Expiry
      the Corporation shall fix a record date for the issuance of options,
      rights or warrants to all or substantially all the holders of its
      outstanding Common Shares entitling them, for a period expiring not more
      than 45 days after such record date, to subscribe for or purchase Common
      Shares (or securities convertible into Common Shares) at a price per share
      (or having a conversion or exchange price per share) less than 95% of the
      Current Market Price of a Common Share on such record date, the Conversion
      Price shall be adjusted immediately after such record date so that it
      shall equal the price determined by multiplying the Conversion Price in
      effect on such record date by a fraction, of which the numerator shall be
      the total number of Common Shares outstanding on such record date plus a
      number of Common Shares equal to the number arrived at by dividing the
      aggregate price of the total number of additional Common Shares offered
      for subscription or purchase (or the aggregate conversion or exchange
      price of the convertible securities so offered) by such Current Market
      Price per Common Share, and of which the denominator shall be the total
      number of Common Shares outstanding on such record date plus the total
      number of additional Common Shares offered for subscription or purchase
      (or into which the convertible securities so offered are convertible).
      Such adjustment shall be made successively whenever such a record date is
      fixed. To the extent that any such options, rights or warrants are not so
      issued or any such options, rights or warrants are not exercised prior to
      the expiration thereof, the Conversion Price shall be re- adjusted to the
      Conversion Price which would then be in effect if such record date had not
      been fixed or to the Conversion Price which would then be in effect based
      upon the number of Common Shares (or securities convertible into Common
      Shares) actually issued upon the exercise of such options, rights or
warrants were included in such fraction, as the case may be.

- 59 - 

	
       
	
      (d) 
	
      If and whenever at any time prior to the Time of Expiry,
      there is a reclassification of the Common Shares or a capital
      reorganization of the Corporation other than as described in Section
      6.5(a) or a consolidation, amalgamation,
arrangement, binding share exchange, merger of the Corporation with or
      into any other Person or other entity or acquisition of the Corporation or
      other combination pursuant to which the Common Shares are converted into
      or acquired for cash, securities or other property; or a sale or
      conveyance of the property and assets of the Corporation as an entirety or
      substantially as an entirety to any other Person (other than a direct or
      indirect wholly-owned subsidiary of the Corporation) or other entity or a
      liquidation, dissolution or winding-up of the Corporation, any holder of a
      Debenture who has not exercised its right of conversion prior to the
      effective date of such reclassification, capital reorganization,
      consolidation, amalgamation, arrangement, merger, share exchange,
      acquisition, combination, sale or conveyance or liquidation, dissolution
      or winding-up, upon the exercise of such right thereafter, shall be
      entitled to receive and shall accept, in lieu of the number of Common
      Shares then sought to be acquired by it, such amount of cash or the number
      of shares or other securities or property of the Corporation or of the
      Person or other entity resulting from such merger, amalgamation,
      arrangement, acquisition, combination or consolidation, or to which such
      sale or conveyance may be made or which holders of Common Shares receive
      pursuant to such liquidation, dissolution or winding-up, as the case may
      be, that such holder of a Debenture would have been entitled to receive on
      such reclassification, capital reorganization, consolidation,
      amalgamation, arrangement, merger, share exchange, acquisition,
      combination, sale or conveyance or liquidation, dissolution or winding-up,
      if, on the record date or the effective date thereof, as the case may be,
      the holder had been the registered holder of the number of Common Shares
      sought to be acquired by it and to which it was entitled to acquire upon
      the exercise of the conversion right. If determined appropriate by the
      Board of Directors, to give effect to or to evidence the provisions of
      this Section 6.5(d), the Corporation, its successor, or such purchasing
      Person or other entity, as the case may be, shall, prior to or
      contemporaneously with any such reclassification, capital reorganization,
      consolidation, amalgamation, arrangement, merger, share exchange,
      acquisition, combination, sale or conveyance or liquidation, dissolution
      or winding-up, enter into an indenture which shall provide, to the extent
      possible, for the application of the provisions set forth in this
      Indenture with respect to the rights and interests thereafter of the
      holder of Debentures to the end that the provisions set forth in this
      Indenture shall thereafter correspondingly be made applicable, as nearly
      as may reasonably be, with respect to any cash, shares or other securities
      or property to which a holder of Debentures is entitled on the exercise of
      its acquisition rights thereafter. Any indenture entered into between the
      Corporation and the Trustees pursuant to the provisions of this Section
      6.5(d) shall be a supplemental indenture entered into pursuant to the
      provisions of Article 16. Any indenture entered into between the
      Corporation, any successor to the Corporation or such purchasing Person or
      other entity and the Trustees shall provide for adjustments which shall be
      as nearly equivalent as may be practicable to the adjustments provided in
      this Section 6.5(d) and which shall apply to successive reclassifications,
      capital reorganizations, amalgamations, consolidations, mergers, share
      exchanges, acquisitions, combinations, sales or conveyances. For greater
      certainty, nothing in this Section 6.5(d) shall affect or reduce the
      requirement for any Person to make a Change of Control Purchase Offer or
      any payment in connection therewith in accordance with Section 2.5, and
      notice of any transaction to which this Section 6.5(d)
    applies shall be given in accordance with Section 6.10.

- 60 - 

	 	(e) 	
      If the Corporation shall make a distribution to all or
      substantially all of the holders of Common Shares of shares in the capital
      of the Corporation, other than Common Shares, or evidences of indebtedness
      or other assets of the Corporation, including securities (but excluding
      (x) any issuance of rights or warrants for which an adjustment was made
      pursuant to Section 6.5(c), and (y) any dividend or distribution paid
      exclusively in cash for which an adjustment was made pursuant to Section
      6.5(b)) (the “Distributed Securities”), then in each such case
      (unless the Corporation distributes such Distributed Securities to the
      holders of Debentures on such dividend or distribution date (as if each
      holder had converted such Debenture into Common Shares immediately
      preceding the record date with respect to such distribution)) the
      Conversion Price in effect immediately preceding the record date fixed for
      the dividend or distribution shall be adjusted so that the same shall
      equal the price determined by multiplying the Conversion Price in effect
      immediately preceding such record date by a fraction of which the
      denominator shall be the five day VWAP for the Common Shares immediately
      prior to the record date and of which the numerator shall be the five day
      VWAP for the Common Shares for the first five trading days that occur
      immediately following such record date. Such adjustment shall be made
      successively whenever any such distribution is made and shall become
      effective five Business Days immediately after the record date. In the
      event that such dividend or distribution is not so paid or made, the
      Conversion Price shall again be adjusted to be the Conversion Price that
      would then be in effect if such dividend or distribution had not been
      declared.

Notwithstanding the foregoing, if the
securities distributed by the Corporation to all holders of its Common Shares
consist of capital stock of, or similar equity interests in, a Subsidiary or
other business of the Corporation (the “Spinoff Securities”), the
Conversion Price shall be adjusted, unless the Corporation makes an equivalent
distribution to the holders of Debentures, so that the same shall be equal to
the rate determined by multiplying the Conversion Price in effect on the record
date fixed for the determination of shareholders entitled to receive such
distribution by a fraction, the denominator of which shall be the sum of (A) the
weighted average trading price of one Common Share over the 20 consecutive
trading day period (the “Spinoff Valuation Period”) commencing on and
including the fifth trading day after the date on which ex-dividend trading
commences for such distribution on the Toronto Stock Exchange, or such other
national or regional exchange or market on which the Common Shares are then
listed or quoted and (B) the product of (i) the weighted average trading price
(calculated in substantially the same way as the Current Market Price is
calculated for the Common Shares) over the Spinoff Valuation Period of the
Spinoff Securities or, if no such prices are available, the fair market value of
the Spinoff Securities as reasonably determined by the Board of Directors (which
determination shall be conclusive and shall be evidenced by an Officers’
Certificate delivered to the Trustees) multiplied by (ii) the number of Spinoff
Securities distributed in respect of one Common Share and the numerator of which
shall be the weighted average trading price of one Common Share
over the Spinoff Valuation Period, such adjustment to become effective
immediately preceding the opening of business on the 25th trading day after the
date on which ex-dividend trading commences; provided, however, that the
Corporation may in lieu of the foregoing adjustment elect to make adequate
provision so that each holder of Debentures shall have the right to receive upon
conversion thereof the amount of such Spinoff Securities that such holder of
Debentures would have received if such Debentures had been converted on the
record date with respect to such distribution. 

- 61 - 

	 	(f) 	
      If any issuer bid made by the Corporation or any of its
      Subsidiaries for all or any portion of Common Shares shall expire, then,
      if the issuer bid shall require the payment to shareholders of
      consideration per Common Share having a fair market value (determined as
      provided below) that exceeds the Current Market Price per Common Share on
      the last date (the “Expiration Date”) tenders could have been made
      pursuant to such issuer bid (as it may be amended) (the last time at which
      such tenders could have been made on the Expiration Date is hereinafter
      sometimes called the “Expiration Time”), the Conversion Price shall
      be adjusted so that the same shall equal the rate determined by
      multiplying the Conversion Price in effect immediately preceding the close
      of business on the Expiration Date by a fraction of which (i) the
      denominator shall be the sum of (A) the fair market value of the aggregate
      consideration (the fair market value as determined by the Board of
      Directors, whose determination shall be conclusive evidence of such fair
      market value and which shall be evidenced by an Officers’ Certificate
      delivered to the Trustees) payable to shareholders based on the acceptance
      (up to any maximum specified in the terms of the issuer bid) of all Common
      Shares validly tendered and not withdrawn as of the Expiration Time (the
      Common Shares deemed so accepted, up to any such maximum, being referred
      to as the “Purchased Common Shares”) and (B) the product of the
      number of Common Shares outstanding (less any Purchased Common Shares and
      excluding any Common Shares held in the treasury of the Corporation) at
      the Expiration Time and the Current Market Price per Common Share on the
      Expiration Date and (ii) the numerator of which shall be the product of
      the number of Common Shares outstanding (including Purchased Common Shares
      but excluding any Common Shares held in the treasury of the Corporation)
      at the Expiration Time multiplied by the Current Market Price per Common
      Share on the Expiration Date, such increase to become effective
      immediately preceding the opening of business on the day following the
      Expiration Date. In the event that the Corporation is obligated to
      purchase Common Shares pursuant to any such issuer bid, but the
      Corporation is permanently prevented by applicable law from effecting any
      or all such purchases or any or all such purchases are rescinded, the
      Conversion Price shall again be adjusted to be the Conversion Price which
      would have been in effect based upon the number of Common Shares actually
      purchased, if any. If the application of this clause (f) of Section 6.5 to
      any issuer bid would result in a decrease in the Conversion Price, no
      adjustment shall be made for such issuer bid under this clause
  (f).

- 62 - 

	 		
      For purposes of this Section 6.5(f), the term “issuer
      bid” shall mean an issuer bid under Applicable Securities Legislation or a
      take-over bid under Applicable Securities Legislation by a Subsidiary of
      the Corporation for the Common Shares and all references to “purchases” of
      Common Shares in issuer bids (and all similar references) shall mean and
      include the purchase of Common Shares in issuer bids and all references to
      “tendered Common Shares” (and all similar references) shall mean and
      include Common Shares tendered in issuer bids.

	 	 	 
	 	(g) 	
      In any case in which this Section 6.5 shall require that
      an adjustment shall become effective immediately after a record date for
      an event referred to herein, the Corporation may defer, until the
      occurrence of such event, issuing to the holder of any Debenture converted
      after such record date and before the occurrence of such event the
      additional Common Shares issuable upon such conversion by reason of the
      adjustment required by such event before giving effect to such adjustment;
      provided, however, that the Corporation shall deliver to such holder an
      appropriate instrument evidencing such holder’s right to receive such
      additional Common Shares upon the occurrence of the event requiring such
      adjustment and the right to receive any distributions made on such
      additional Common Shares declared in favour of holders of record of Common
      Shares on and after the Date of Conversion or such later date as such
      holder would, but for the provisions of this Section 6.5(f), have become
      the holder of record of such additional Common Shares pursuant to Section
      6.4(b).

	 	 	 
	 	(h) 	
      The adjustments provided for in this Section 6.5 are
      cumulative and shall apply to successive subdivisions, redivisions,
      reductions, combinations, consolidations, distributions, issues or other
      events resulting in any adjustment under the provisions of this Section
      6.5, provided that, notwithstanding any other provision of this Section
      6.5, no adjustment of the Conversion Price shall be required unless such
      adjustment would require an increase or decrease of at least 1% in the
      Conversion Price then in effect; provided however, that any adjustments
      which by reason of this Section 6.5(g) are not required to be made shall
      be carried forward and taken into account in any subsequent
    adjustment.

	 	 	 
	 	(i) 	
      For the purpose of calculating the number of Common
      Shares outstanding, Common Shares owned by or for the benefit of the
      Corporation shall not be counted.

	 	 	 
	 	(j) 	
      In the event of any question arising with respect to the
      adjustments provided in this Section 6.5, such question shall be
      conclusively determined by a firm of nationally recognized chartered
      accountants appointed by the Corporation and acceptable to the Trustees
      (who may be the Auditors of the Corporation); such accountants shall have
      access to all necessary records of the Corporation and such determination
      shall be binding upon the Corporation, the Trustees and the
      Debentureholders.

	 	 	 
	 	(k) 	
      In case the Corporation shall take any action affecting
      the Common Shares other than action described in this Section 6.5, which
      in the opinion of the Board of Directors, would materially affect the
      rights of Debentureholders, the Conversion Price shall be adjusted in such
      manner and at such time, by action of the Board
of Directors, subject to the prior written consent of the
      Toronto Stock Exchange or such other exchange on which the Debentures are
      then listed, as the Board of Directors, in their sole discretion may
      determine to be equitable in the circumstances. Failure of the directors
      to make such an adjustment shall be conclusive evidence that they have
      determined that it is equitable to make no adjustment in the
  circumstances.

- 63 - 

	 	(l) 	
      Subject to the prior written consent of the Toronto Stock
      Exchange or such other exchange on which the Debentures are then listed,
      no adjustment in the Conversion Price shall be made in respect of any
      event described in Sections 6.5(a), 6.5(b), 6.5(c), 6.5(e) or 6.5(f) other
      than the events described in Section 6.5(a)(i) or (a)(ii) if the holders
      of the Debentures are entitled to participate in such event on the same
      terms mutatis mutandis as if they had converted their Debentures
      prior to the effective date or record date, as the case may be, of such
      event.

	 	 	 
	 	(m) 	
      Except as stated above in this Section 6.5, no adjustment
      will be made in the Conversion Price for any Debentures as a result of the
      issuance of Common Shares at less than the Current Market Price for such
      Common Shares on the date of issuance or the then applicable Conversion
      Price.

	6.6 	
      No Requirement to Issue Fractional Common
      Shares

The Corporation shall not be required to issue fractional
Common Shares upon the conversion of Debentures pursuant to this Article. If
more than one Debenture shall be surrendered for conversion at one time by the
same holder, the number of whole Common Shares issuable upon conversion thereof
shall be computed on the basis of the aggregate principal amount of such
Debentures to be converted. If any fractional interest in a Common Share would,
except for the provisions of this Section, be deliverable upon the conversion of
any principal amount of Debentures, the Corporation shall, in lieu of delivering
any certificate representing such fractional interest, make a cash payment to
the holder of such Debenture of an amount equal to the fractional interest which
would have been issuable multiplied by the Current Market Price, provided,
however, that the Corporation shall not be required to make any payment of less
than $5.00. 

	6.7 	
      Corporation to Reserve Common
  Shares

The Corporation covenants with the Trustees that it will at all
times reserve and keep available out of its authorized Common Shares (if the
number thereof is or becomes limited), solely for the purpose of issue upon
conversion of Debentures as in this Article 6 provided, and conditionally allot
to Debentureholders who may exercise their conversion rights hereunder, such
number of Common Shares as shall then be issuable upon the conversion of all
outstanding Debentures. The Corporation covenants with the Trustees that all
Common Shares which shall be so issuable shall be duly and validly issued as
fully-paid and non-assessable. 

	6.8 	
      Cancellation of Converted
  Debentures

Subject to the provisions of Section 6.4 as to Debentures
converted in part, all Debentures converted in whole or in part under the
provisions of this Article 6 shall be forthwith delivered to and cancelled by the Trustees and no Debenture shall be issued
in substitution for those converted. 

- 64 - 

	6.9 	
      Certificate as to
  Adjustment

The Corporation shall from time to time immediately after the
occurrence of any event which requires an adjustment or readjustment as provided
in Section 6.5, deliver an Officers’ Certificate to the Trustees specifying the
nature of the event requiring the same and the amount of the adjustment
necessitated thereby and setting forth in reasonable detail the method of
calculation and the facts upon which such calculation is based, which
certificate and the amount of the adjustment specified therein shall be verified
by an opinion of a firm of nationally recognized chartered accountants appointed
by the Corporation and acceptable to the Trustees (who may be the Auditors of
the Corporation) and shall be conclusive and binding on all parties in interest.
When so approved, the Corporation shall, except in respect of any subdivision,
redivision, reduction, combination or consolidation of the Common Shares,
forthwith give notice to the Debentureholders in the manner provided in Section
14.2 specifying the event requiring such adjustment or readjustment and the
results thereof, including the resulting Conversion Price; provided that, if the
Corporation has given notice under this Section 6.9 covering all the relevant
facts in respect of such event and if the Trustees approve, no such notice need
be given under this Section 6.9. 

	6.10 	
      Notice of Special
Matters

The Corporation covenants with the Trustees that so long as any
Debenture remains outstanding, it will give notice to the Trustees, and to the
Debentureholders in the manner provided in Section 14.2, of its intention to fix
a record date for any event referred to in Sections 6.5(a), 6.5(b), 6.5(c) or
6.5(e) (other than the subdivision, redivision, reduction, combination or
consolidation of its Common Shares) which may give rise to an adjustment in the
Conversion Price, and, in each case, such notice shall specify the particulars
of such event and the record date and the effective date for such event;
provided that the Corporation shall only be required to specify in such notice
such particulars of such event as shall have been fixed and determined on the
date on which such notice is given. Such notice shall be given not less than 14
days in each case prior to such applicable record date. 

In addition, the Corporation covenants with the Trustees that
so long as any Debenture remains outstanding, it will give notice to the
Trustees, and to the Debentureholders in the manner provided in Section 14.2, at
least 30 days prior to the effective date of any transaction referred to in
Section 6.5(d) stating the consideration into which the Debentures will be
convertible after the effective date of such transaction. 

	6.11 	
      Protection of
Trustees

Subject to Section 15.1(d), the Trustees: 

	 	(a) 	
      shall not at any time be under any duty or responsibility
      to any Debentureholder to determine whether any facts exist which may
      require any adjustment in the Conversion Price, or with respect to the
      nature or extent of any such adjustment when made, or with respect to the
      method employed in making the same;

- 65 - 

	 	(b) 	
      shall not be accountable with respect to the validity or
      value (or the kind or amount) of any Common Shares or of any shares or
      other securities or property which may at any time be issued or delivered
      upon the conversion of any Debenture; and

	 	 	 
	 	(c) 	
      shall not be responsible for any failure of the
      Corporation to make any cash payment or to issue, transfer or deliver
      Common Shares or share certificates upon the surrender of any Debenture
      for the purpose of conversion, or to comply with any of the covenants
      contained in this Article 6.

	6.12 	
      U.S. Securities
Laws

Any conversion of Debentures into Common Shares or other
securities of the Corporation shall be effected in accordance with U.S.
Securities Laws. 

ARTICLE 7 
COVENANTS OF THE CORPORATION 

The Corporation hereby covenants and agrees with the Trustees
for the benefit of the Trustees and the Debentureholders, that so long as any
Debentures remain outstanding: 

	7.1 	
      To Pay Principal, Premium (if any) and
      Interest

The Corporation will duly and punctually pay or cause to be
paid to every Debentureholder the principal of, premium (if any) and interest
accrued on the Debentures of which it is the holder on the dates, at the places
and in the manner mentioned herein and in the Debentures. 

	7.2 	
      To Pay Trustees’
  Remuneration

The Corporation will pay the Trustees reasonable remuneration
for their services as trustees hereunder and will repay to the Trustees on
demand all monies which shall have been paid by the Trustees in connection with
the execution of the trusts hereby created and such monies including the
Trustees’ remuneration, shall be payable out of any funds coming into the
possession of the Trustees in priority to payment of any principal of the
Debentures or interest or premium thereon. Such remuneration shall continue to
be payable until the trusts hereof be finally wound up and whether or not the
trusts of this Indenture shall be in the course of administration by or under
the direction of a court of competent jurisdiction. 

	7.3 	
      To Give Notice of
Default

The Corporation shall notify the Trustees immediately upon
obtaining knowledge of any default or Event of Default hereunder, and in any
event within 30 days after the Corporation becomes aware or should reasonably
become aware of the occurrence of a default or Event of Default hereunder, an
Officers’ Certificate setting forth the details of the default, and the action
which the Corporation proposes to take with respect thereto. 

	7.4 	
      Preservation of Existence,
  etc.

Subject to the express provisions hereof, the Corporation will
carry on and conduct its activities, and cause its Subsidiaries to carry on and
conduct their businesses, in a business-like manner and in accordance with good business practices; and, subject to the
express provisions hereof, it will do or cause to be done all things necessary
to preserve and keep in full force and effect its existence and rights. 

- 66 - 

	7.5 	
      Keeping of Books

The Corporation will keep or cause to be kept proper books of
record and account, in which full and correct entries shall be made of all
financial transactions and the assets and business of the Corporation in
accordance with generally accepted accounting principles. 

	7.6 	
      Annual Certificate of Compliance;
      Reporting

	 	(a) 	
      The Corporation will deliver to the Trustees within 120
      days after the end of each fiscal year a certificate from the principal
      executive officer, principal financial officer or principal accounting
      officer of the Corporation stating whether or not such officer knows of
      any default with respect to the Debentures that occurred during such
      period. If the signer know of any default, the certificate shall describe
      the default, its status and what such the Corporation is taking or
      proposes to take with respect thereto. The Corporation also shall comply
      with Section 314(a)(4) of the Trust Indenture Act.

	 	 	 
	 	(b) 	
      The Corporation shall deliver to the Trustees such
      additional information, documents and other reports as is required by
      Section 314 of the Trust Indenture Act.

	7.7 	
      Performance of Covenants by
  Trustees

If the Corporation shall fail to perform any of its covenants
contained in this Indenture, the Trustees may notify the Debentureholders of
such failure on the part of the Corporation or may itself perform any of the
covenants capable of being performed by it, but shall be under no obligation to
do so or to notify the Debentureholders. All sums so expended or advanced by the
Trustees shall be repayable as provided in Section 7.2. No such performance,
expenditure or advance by the Trustees shall be deemed to relieve the
Corporation of any default hereunder. 

	7.8 	
      SEC Reports

To the extent required by the Trust Indenture Act, the
Corporation shall file with the Trustees within 30 days after it files them with
the SEC, copies of its annual report and the information, documents and other
reports (or copies of such portions of any of the foregoing as the SEC may by
rules and regulations prescribe) that the Corporation is required to file with
the SEC pursuant to Sections 13 and 15(d) of the Exchange Act. Delivery of such
reports, information and documents to the Trustees are for informational
purposes only and the Trustees’ receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Corporation’s compliance with any
of its covenants hereunder (as to which the Trustees is entitled to rely
exclusively on Officers’ Certificates). The Corporation also shall comply with
the other provisions of Section 314(a) of the Trust Indenture Act. 

- 67 - 

	7.9 	
      No Dividends on Common Shares if Event of
      Default

The Corporation shall not declare or pay any dividend to the
holders of its issued and outstanding Common Shares after the occurrence of an
Event of Default unless and until such default shall have been cured or waived
or shall have ceased to exist. 

	7.10 	
      Maintain Listing

The Corporation will use reasonable commercial efforts to
maintain the listing of the Common Shares and the Debentures on the Toronto
Stock Exchange, and to maintain the Corporation’s status as a “reporting issuer”
not in default of the requirements of the Applicable Securities Legislation;
provided that the foregoing covenant shall not prevent or restrict the
Corporation from carrying out a transaction to which Article 11 would apply if
carried out in compliance with Article 11 even if as a result of such
transaction the Corporation ceases to be a “reporting issuer” in all or any of
the provinces of Canada or the Common Shares or Debentures cease to be listed on
the Toronto Stock Exchange or any other stock exchange. 

ARTICLE 8 
DEFAULT 

	8.1 	
      Events of Default

Each of the following events constitutes, and is herein
sometimes referred to as, an “Event of Default”: 

	 	(a) 	
      failure for 10 days to pay interest on the Debentures
      after such interest is due;

	 	 	 
	 	(b) 	
      failure to pay principal or premium, if any, when due on
      the Debentures whether at maturity, upon redemption, by declaration or
      otherwise;

	 	 	 
	 	(c) 	
      default in the delivery, when due, of all cash and any
      Common Shares or other consideration, payable on conversion, redemption or
      maturity of the Debentures, which default continues for 15 days;

	 	 	 
	 	(d) 	
      default in the observance or performance of any covenant
      or condition of the Indenture by the Corporation and the failure to cure
      (or obtain a waiver for) such default for a period of 60 days after notice
      in writing has been given by the Trustees or from holders of not less than
      25% in aggregate principal amount of the Debentures to the Corporation
      specifying such default and requiring the Corporation to rectify such
      default or obtain a waiver for same;

	 	 	 
	 	(e) 	
      if a decree or order of a Court having jurisdiction is
      entered adjudging the Corporation a bankrupt or insolvent under the
      Bankruptcy and Insolvency Act (Canada) or any other bankruptcy,
      insolvency or analogous laws, or issuing sequestration or process of
      execution against, or against any substantial part of, the property of the
      Corporation, or appointing a receiver of, or of any substantial part of,
      the property of the Corporation or ordering the winding-up or liquidation
      of its affairs, and any such decree or order continues unstayed and in
      effect for a period of 60 days;

- 68 - 

	 	(f) 	
      if the Corporation institutes proceedings to be
      adjudicated a bankrupt or insolvent, or consents to the institution of
      bankruptcy or insolvency proceedings against it under the Bankruptcy
      and Insolvency Act (Canada) or any other bankruptcy, insolvency or
      analogous laws, or consents to the filing of any such petition or to the
      appointment of a receiver of, or of any substantial part of, the property
      of the Corporation or makes a general assignment for the benefit of
      creditors, or admits in writing its inability to pay its debts generally
      as they become due;

	 	 	 
	 	(g) 	
      if a resolution is passed for the winding-up or
      liquidation of the Corporation except in the course of carrying out or
      pursuant to a transaction in respect of which the conditions of Section
      11.1 are duly observed and performed;

	 	 	 
	 	(h) 	
      if, after the date of this Indenture, any proceedings
      with respect to the Corporation are taken with respect to a compromise or
      arrangement, with respect to creditors of the Corporation generally, under
      the applicable legislation of any jurisdiction; or

	 	 	 
	 	(i) 	
      any failure by the Corporation to comply with the terms
      of any indebtedness of the Corporation or its Subsidiaries in an aggregate
      amount of at least $10,000,000 (or the foreign currency equivalent) where
      such failure to comply results in an acceleration of such indebtedness
      prior to maturity.

then: (x) in each and every such event listed above, the
Trustees may, in their discretion, and shall, upon receipt of a request in
writing signed by the holders of not less than 25% in principal amount of the
Debentures then outstanding, subject to the provisions of Section 8.3, by notice
in writing to the Corporation declare the principal of and interest and premium,
if any, on all Debentures then outstanding and all other monies outstanding
hereunder to be due and payable and the same shall thereupon forthwith become
immediately due and payable to the Trustees, and on the occurrence of an Event
of Default under Sections 8.1(e), 8.1(f), 8.1(g) or 8.1(h), the principal of and
interest and premium, if any, on all Debentures then outstanding hereunder and
all other monies outstanding hereunder, shall automatically without any
declaration or other act on the part of the Trustees or any Debentureholder
become immediately due and payable to the Trustees and, in either case, upon
such amounts becoming due and payable in either (x) or (y) above, the
Corporation shall forthwith pay to the Trustees for the benefit of the
Debentureholders such principal, accrued and unpaid interest and premium, if
any, and interest on amounts in default on such Debenture and all other monies
outstanding hereunder, together with subsequent interest at the rate borne by
the Debentures on such principal, interest, premium and such other monies from
the date of such declaration or event until payment is received by the Trustees,
such subsequent interest to be payable at the times and places and in the manner
mentioned in and according to the tenor of the Debentures. Such payment when
made shall be deemed to have been made in discharge of the Corporation’s
obligations hereunder and any monies so received by the Trustees shall be
applied in the manner provided in Section 8.6. 

For greater certainty, for the purposes of this Section 8.1, a
series of Debentures shall be in default in respect of an Event of Default if
such Event of Default relates to a default in the payment of principal, premium,
if any, or interest on the Debentures of such series in which case references to
Debentures in this Section 8.1 refer to Debentures of that particular series.

For purposes of this Article 8, where the Event of Default
refers to an Event of Default with respect to a particular series of Debentures
as described in this Section 8.1, then this Article 8 shall apply mutatis mutandis to the Debentures of such series
and references in this Article 8 to the Debentures shall mean Debentures of the
particular series and references to the Debentureholders shall refer to the
Debentureholders of the particular series, as applicable. 

- 69 - 

	8.2 	
      Notice of Events of
  Default

If an Event of Default shall occur and be continuing the
Trustees shall, within 30 days after it receives written notice of the
occurrence of such Event of Default, give notice of such Event of Default to the
Debentureholders in the manner provided in Section 14.2, provided that
notwithstanding the foregoing, unless the Trustees shall have been requested to
do so by the holders of at least 25% of the principal amount of the Debentures
then outstanding, the Trustees shall not be required to give such notice if the
Trustees in good faith shall have determined that the withholding of such notice
is in the best interests of the Debentureholders and shall have so advised the
Corporation in writing. Notice to holders under this Section 8.2 will be given
in the manner and to the extent provided in Section 313(c) of the Trust
Indenture Act. 

	8.3 	
      Waiver of Default

Upon the occurrence of an Event of Default hereunder, the
holders of the Debentures shall have the power (in addition to the powers
exercisable by Extraordinary Resolution as hereinafter provided) by requisition
in writing by the holders of more than 50% of the principal amount of Debentures
then outstanding, to instruct the Trustees to waive any Event of Default and to
cancel any declaration made by the Trustees pursuant to Section 8.1 and the
Trustees shall thereupon waive the Event of Default and cancel such declaration,
or either, upon such terms and conditions as shall be prescribed in such
requisition; provided that notwithstanding the foregoing if the Event of Default
has occurred by reason of the non-observance or non-performance by the
Corporation of any covenant applicable only to one or more series of Debentures,
then the holders of more than 50% of the principal amount of the outstanding
Debentures of that series shall be entitled to exercise the foregoing power and
the Trustees shall so act and it shall not be necessary to obtain a waiver from
the holders of any other series of Debentures. 

	8.4 	
      Enforcement by the
Trustee

Subject to the provisions of Section 8.3 and to the provisions
of any Extraordinary Resolution that may be passed by the Debentureholders, if
the Corporation shall fail to pay to the Trustees, forthwith after the same
shall have been declared to be due and payable under Section 8.1, the principal
of and premium (if any) and interest on all Debentures then outstanding,
together with any other amounts due hereunder, the Trustees may in their
discretion and shall upon receipt of a request in writing signed by the holders
of not less than 25% in principal amount of the Debentures then outstanding and
upon being funded and indemnified to its reasonable satisfaction against all
costs, expenses and liabilities to be incurred, proceed in their names as
Trustees hereunder to obtain or enforce payment of such principal of and premium
(if any) and interest on all the Debentures then outstanding together with any
other amounts due hereunder by such proceedings authorized by this Indenture or
by law or equity as the Trustees in such request shall have been directed to
take, or if such request contains no such direction, or if the Trustees shall
act without such request, then by such proceedings authorized by this Indenture
or by suit at law or in equity as the Trustees shall deem expedient. 

- 70 - 

The Trustees shall be entitled and empowered, either in their
own names or as trustees of an express trust, or as attorney-in-fact for the
holders of the Debentures, or in any one or more of such capacities, to file
such proof of debt, amendment of proof of debt, claim, petition or other
document as may be necessary or advisable in order to have the claims of the
Trustees (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustees, their agents and counsel, and any
other amounts due the Trustees under Section 15.9) and of the holders of the
Debentures allowed in any insolvency, bankruptcy, liquidation or other judicial
proceedings relative to the Corporation or its creditors or relative to or
affecting its property. The Trustees are hereby irrevocably appointed (and the
successive respective holders of the Debentures by taking and holding the same
shall be conclusively deemed to have so appointed the Trustees) the true and
lawful attorneys-in-fact of the respective holders of the Debentures with
authority to make and file in the respective names of the holders of the
Debentures or on behalf of the holders of the Debentures as a class, subject to
deduction from any such claims of the amounts of any claims filed by any of the
holders of the Debentures themselves, any proof of debt, amendment of proof of
debt, claim, petition or other document in any such proceedings and to receive
payment of any sums becoming distributable on account thereof, and to execute
any such other papers and documents and to do and perform any and all such acts
and things for and on behalf of such holders of the Debentures, as may be
necessary or advisable in the opinion of the Trustees, in order to have the
respective claims of the Trustees and of the holders of the Debentures against
the Corporation or its property allowed in any such proceeding, and to receive
payment of or on account of such claims; provided, however, that subject to
Section 8.3, nothing contained in this Indenture shall be deemed to give to the
Trustees, unless so authorized by Extraordinary Resolution, any right to accept
or consent to any plan of reorganization or otherwise by action of any character
in such proceeding to waive or change in any way any right of any
Debentureholder. 

The Trustees shall also have the power at any time and from
time to time to institute and to maintain such suits and proceedings as it may
be advised shall be necessary or advisable to preserve and protect its interests
and the interests of the Debentureholders. 

All rights of action hereunder may be enforced by the Trustees
without the possession of any of the Debentures or the production thereof on the
trial or other proceedings relating thereto. Any such suit or proceeding
instituted by the Trustees shall be brought in the name of the Trustees as
trustees of an express trust, and any recovery of judgment shall be for the
rateable benefit of the holders of the Debentures subject to the provisions of
this Indenture. In any proceeding brought by the Trustees (and also any
proceeding in which a declaratory judgment of a court may be sought as to the
interpretation or construction of any provision of this Indenture, to which the
Trustees shall be a party) the Trustees shall be held to represent all the
holders of the Debentures, and it shall not be necessary to make any holders of
the Debentures parties to any such proceeding. 

	8.5 	
      No Suits by
  Debentureholders

No holder of any Debenture shall have any right to institute
any action, suit or proceeding at law or in equity for the purpose of enforcing
payment of the principal of or interest on the Debentures or for the execution
of any trust or power hereunder or for the appointment of a liquidator or
receiver or for a receiving order under the Bankruptcy and Insolvency Act
(Canada) or to have the Corporation wound up or to file or prove a claim in any
liquidation or bankruptcy proceeding or for any other remedy hereunder, unless:
(a) such holder shall previously have given to the Trustees written notice of the happening of an Event of Default
hereunder; and (b) the Debentureholders by Extraordinary Resolution or by
written instrument signed by the holders of at least 25% in principal amount of
the Debentures then outstanding shall have made a request to the Trustees and
the Trustees shall have been afforded reasonable opportunity to proceed to
exercise the powers hereinbefore granted or to institute an action, suit or
proceeding in its name for such purpose; and (c) the Debentureholders or any of
them shall have furnished to the Trustees, when so requested by the Trustees,
sufficient funds and security and indemnity satisfactory to it against the
costs, expenses and liabilities to be incurred therein or thereby; and (d) the
Trustees shall have failed to act within a 60 days after such notification,
request, receipt of sufficient funds, security and offer of indemnity and such
notification, request, receipt of sufficient funds, security and offer of
indemnity are hereby declared in every such case, at the option of the Trustees,
to be conditions precedent to any such proceeding or for any other remedy
hereunder by or on behalf of the holder of any Debentures and (e) the holders of
more than 50% in aggregate principal amount of the Outstanding Debentures do not
give the Trustees a direction that, in the opinion of the Trustees, is
inconsistent with the request within such 60-day period. 

- 71 - 

For purposes of Section 8.4 of this Indenture and this Section
8.6, the Trustees shall comply with Section 316(a) of the Trust Indenture Act in
making any determination of whether the holders of the required aggregate
principal amount of Outstanding Debentures of a particular series have concurred
in any request or direction of the Trustees to pursue any remedy available to
the Trustees or the holders with respect to this Indenture or the Debentures of
that series or otherwise under the law. 

A holder may not use this Indenture to prejudice the rights of
another holder of Debentures of the same series or to obtain a preference or
priority over such other holder (it being understood that the Trustees do not
have any affirmative duty to ascertain whether or not such actions or
forbearances are unduly prejudicial to such holders). 

	8.6 	
      Application of Monies by
  Trustees

	 	(a) 	
      Except as herein otherwise expressly provided, any monies
      received by the Trustees from the Corporation pursuant to this Article 8,
      or as a result of legal or other proceedings or from any trustee in
      bankruptcy or liquidator of the Corporation, shall be applied, together
      with any other monies in the hands of the Trustees available for such
      purpose, as follows:

	 	 	 	 
	 		(i) 	
      first, in payment or in reimbursement to the Trustees of
      their compensation, costs, charges, expenses, borrowings, advances or
      other monies furnished or provided by or at the instance of the Trustees
      in or about the execution of their trusts under, or otherwise in relation
      to, this Indenture (including but not limited to Section 15.9), with
      interest thereon as herein provided;

	 	 	 	 
	 		(ii) 	
      second, but subject as hereinafter in this Section 8.6
      provided, in payment, rateably and proportionately to the holders of
      Debentures, of the principal of and premium (if any) and accrued and
      unpaid interest and interest on amounts in default on the Debentures which
      shall then be outstanding in the priority of principal first and then
      premium and then accrued and unpaid interest and interest on amounts in
      default unless otherwise directed by Extraordinary Resolution and in that case in such
      order or priority as between principal, premium (if any) and interest as
  may be directed by such resolution; and

- 72 - 

	 	(iii) 	
      third, in payment of the surplus, if any, of such monies
      to the Corporation or its assigns;

	 		
      provided, however, that no payment shall be made pursuant
      to clause (ii) above in respect of the principal, premium, if any, or
      interest on any Debenture held, directly or indirectly, by or for the
      benefit of the Corporation or any Subsidiary (other than any Debenture
      pledged for value and in good faith to a Person other than the Corporation
      or any Subsidiary but only to the extent of such Person’s interest
      therein) except subject to the prior payment in full of the principal,
      premium (if any) and interest (if any) on all Debentures which are not so
      held.

	 	 	 
	 	(b) 	
      The Trustees shall not be bound to apply or make any
      partial or interim payment of any monies coming into their hands if the
      amount so received by them, after reserving thereout such amount as the
      Trustees may think necessary to provide for the payments mentioned in
      Section 8.6(a), is insufficient to make a distribution of at least 2% of
      the aggregate principal amount of the outstanding Debentures, but it may
      retain the money so received by it and invest or deposit the same as
      provided in Section 15.10 until the money or the investments representing
      the same, with the income derived therefrom, together with any other
      monies for the time being under its control shall be sufficient for the
      said purpose or until it shall consider it advisable to apply the same in
      the manner hereinbefore set forth. The foregoing shall, however, not apply
      to a final payment in distribution hereunder.

	8.7 	
      Control by Majority

The holders of a majority in aggregate principal amount of the
outstanding Debentures may direct the time, method and place of conducting any
proceeding for any remedy available to the Trustees or exercising any trust or
power conferred on the Trustees. However, the Trustees may refuse to follow any
direction that conflicts with law or the Indenture, that may involve the
Trustees in personal liability, or that the Trustees determine in good faith may
be unduly prejudicial to the rights of holders of Debentures not joining in the
giving of such direction, and may take any other action it deems proper that is
not inconsistent with any such direction received from holders of Debentures.

	8.8 	
      Notice of Payment by
  Trustees

Not less than 15 days’ notice shall be given in the manner
provided in Section 14.2 by the Trustees to the Debentureholders of any payment
to be made under this Article 8. Such notice shall state the time when and place
where such payment is to be made and also the liability under this Indenture to
which it is to be applied. After the day so fixed, unless payment shall have
been duly demanded and have been refused, the Debentureholders will be entitled
to interest only on the balance (if any) of the principal monies, premium (if
any) and interest due (if any) to them, respectively, on the Debentures, after
deduction of the respective amounts payable in respect thereof on the day so
fixed. 

- 73 - 

	8.9 	
      Trustees May Demand Production of
      Debentures

The Trustees shall have the right to demand production of the
Debentures in respect of which any payment of principal, interest or premium
required by this Article 8 is made and may cause to be endorsed on the same a
memorandum of the amount so paid and the date of payment, but the Trustees may,
in their discretion, dispense with such production and endorsement, upon such
indemnity being given to it and to the Corporation as the Trustees shall deem
sufficient. 

	8.10 	
      Remedies Cumulative

No remedy herein conferred upon or reserved to the Trustees, or
upon or to the holders of Debentures is intended to be exclusive of any other
remedy, but each and every such remedy shall be cumulative and shall be in
addition to every other remedy given hereunder or now existing or hereafter to
exist by law or by statute. 

	8.11 	
      Judgment Against the
  Corporation

The Corporation covenants and agrees with the Trustees that, in
case of any judicial or other proceedings to enforce the rights of the
Debentureholders, judgment may be rendered against it in favour of the
Debentureholders or in favour of the Trustees as trustees for the
Debentureholders for any amount which may remain due in respect of the
Debentures and premium (if any) and the interest thereon and any other monies
owing hereunder. 

	8.12 	
      Immunity of Directors, Officers and
      Others

The Debentureholders and the Trustees hereby waive and release
any right, cause of action or remedy now or hereafter existing in any
jurisdiction against any past, present or future officer, director or employee
of the Corporation or holder of Common Shares of the Corporation or of any
successor for the payment of the principal of or premium or interest on any of
the Debentures or on any covenant, agreement, representation or warranty by the
Corporation contained herein or in the Debentures. 

	8.13 	
      Rights of Holders to Receive
  Payment

Notwithstanding any other provision of this Indenture, the
right of any holder of a Debenture to receive payment of the principal of or
interest on such Debenture or to bring suit for the enforcement of any such
payment, on or after the respective due dates expressed in the Debenture, shall
not be impaired or affected without the consent of the holder. 

	8.14 	
      Undertaking for
Costs

In any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustees for any action taken,
suffered or omitted by it as Trustees, a court may require any party litigant in
such suit to file an undertaking to pay the costs of such suit, and may assess
costs, including attorneys fees, against any such party litigant, in the manner
and to the extent provided in the Trust Indenture Act; provided that
neither this Section nor the Trust Indenture Act shall be deemed to authorize
any court to require such an undertaking or to make such an assessment in any
suit instituted by the Corporation or in any suit for the enforcement of the
right to convert any Debenture in accordance with Article 6. 

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ARTICLE 9 
SATISFACTION AND DISCHARGE 

	9.1 	
      Cancellation and
  Destruction

All Debentures shall forthwith after payment thereof be
delivered to the Trustees and cancelled by them. All Debentures cancelled or
required to be cancelled under this or any other provision of this Indenture
shall be destroyed by the Trustees and, if required by the Corporation, the
Trustees shall furnish to it a destruction certificate setting out the
designating numbers of the Debentures so destroyed. 

	9.2 	
      Non-Presentation of
  Debentures

In case the holder of any Debenture shall fail to present the
same for payment on the date on which the principal of, premium (if any) or the
interest thereon or represented thereby becomes payable either at maturity or
otherwise or shall not accept payment on account thereof and give such receipt
therefor, if any, as the Trustees may require: 

	 	(a) 	
      the Corporation shall be entitled to pay or deliver to
      the Trustees and direct them to set aside; or

	 	 	 
	 	(b) 	
      in respect of monies or Common Shares in the hands of the
      Trustees which may or should be applied to the payment of the Debentures,
      the Corporation shall be entitled to direct the Trustees to set aside;
      or

	 	 	 
	 	(c) 	
      if the redemption was pursuant to notice given by the
      Trustees, the Trustees may themselves set aside;

the monies or Common Shares, as the case may be, in trust to be
paid to the holder of such Debenture upon due presentation or surrender thereof
in accordance with the provisions of this Indenture; and thereupon the principal
of, premium (if any) or the interest payable on or represented by each Debenture
in respect whereof such monies or Common Shares, if applicable, have been set
aside shall be deemed to have been paid and the holder thereof shall thereafter
have no right in respect thereof except that of receiving delivery and payment
of the monies or Common Shares, if applicable, so set aside by the Trustees upon
due presentation and surrender thereof, subject always to the provisions of
Section 9.3. 

	9.3 	
      Repayment of Unclaimed Monies or Common
      Shares

Subject to applicable law, any monies or Common Shares, if
applicable, set aside under Section 9.2 and not claimed by and paid to holders
of Debentures as provided in Section 9.2 within five years less one day after
the date of such setting aside shall be repaid and delivered to the Corporation
by the Trustees and thereupon the Trustees shall be released from all further
liability with respect to such monies or Common Shares, if applicable, and
thereafter the holders of the Debentures in respect of which such monies or
Common Shares, if applicable, were so repaid to the Corporation shall have no
rights in respect thereof except to obtain payment and delivery of the monies or
Common Shares, if applicable, from the Corporation. Notwithstanding the
foregoing, the Trustees will pay any remaining funds prior to the expiry of five
years less one day after the setting aside described in Section 9.4 to the
Corporation upon receipt from the Corporation, of an unconditional letter of
credit denominated and payable in the currency or currency unit in which the
Debentures are payable and in an amount equal to or in excess of the amount of
the remaining funds. If the remaining funds are paid to the Corporation prior to
the expiry of five years less one day after such setting aside, the Corporation
shall reimburse the Trustees for any amounts so set aside which are required to
be paid by the Trustees to a holder of a Debenture after the date of such
payment of the remaining funds to the Corporation but prior to five years less
one day after such setting aside. 

- 75 - 

	9.4 	
      Discharge

The Trustees shall at the written request of the Corporation
release and discharge this Indenture and execute and deliver such instruments as
it shall be advised by Counsel are requisite for that purpose and to release the
Corporation from its covenants herein contained (other than pursuant to the
provisions relating to the indemnification of the Trustees), upon proof
(delivery to the Trustees of an opinion of Counsel and an Officers’ Certificate
stating that all conditions precedent herein provided relating to the discharge
of this Indenture have been complied with) being given to the reasonable
satisfaction of the Trustees that the principal of, premium (if any) and
interest (including interest on amounts in default, if any), on all the
Debentures and all other monies payable or Common Shares issuable hereunder have
been paid, satisfied or delivered that all the Debentures having matured or
having been duly called for redemption, payment of the principal of and interest
(including interest on amounts in default, if any) on such Debentures and of all
other monies payable hereunder has been duly and effectually provided for in
accordance with the provisions hereof. 

	9.5 	
      Satisfaction

	 	(a) 	
      The Corporation shall be deemed to have fully paid,
      satisfied and discharged all of the outstanding Debentures of any series
      and the Trustees, at the expense of the Corporation, shall execute and
      deliver proper instruments acknowledging the full payment, satisfaction
      and discharge of such Debentures, when, with respect to all of the
      outstanding Debentures or all of the outstanding Debentures of any series,
      as applicable:

	 	 	 	 	 
	 		(i) 	
      the Corporation has deposited or caused to be deposited
      with the Trustees as trust funds or property in trust for the purpose of
      making payment on such Debentures, an amount in money or Common Shares, if
      applicable, sufficient to pay, satisfy and discharge the entire amount of
      principal of, premium, if any, and interest, if any, to maturity, or any
      repayment date or Redemption Dates, or any Change of Control Purchase
      Date, or upon conversion or otherwise as the case may be, of such
      Debentures;

	 	 	 	 	 
	 		(ii) 	
      the Corporation has deposited or caused to be deposited
      with the Trustees as trust property in trust for the purpose of making
      payment on such Debentures:

	 	 	 	 	 
	 			(A) 	
      if the Debentures are issued in Canadian dollars, such
      amount in Canadian dollars of direct obligations of, or obligations
    the principal and interest of which are guaranteed by, the
  Government of Canada or Common Shares, if applicable; or

- 76 - 

	 	(B) 	
      if the Debentures are issued in a currency or currency
      unit other than Canadian dollars, cash in the currency or currency unit in
      which the Debentures are payable and/or such amount in such currency or
      currency unit of direct obligations of, or obligations the principal and
      interest of which are guaranteed by, the Government of Canada or the
      government that issued the currency or currency unit in which the
      Debentures are payable or Common Shares, if
applicable;

	 		
      as will, together with the income to accrue thereon and
      reinvestment thereof, be sufficient to pay and discharge the entire amount
      of principal of, premium, if any on, and accrued and unpaid interest to
      maturity or any repayment date, as the case may be, of all such
      Debentures; or

	 	 	 
	 	(iii) 	
      all Debentures authenticated and delivered (other than
      (A) Debentures which have been destroyed, lost or stolen and which have
      been replaced or paid as provided in Section 2.11 and (B) Debentures for
      whose payment has been deposited in trust and thereafter repaid to the
      Corporation as provided in Section 9.3) have been delivered to the
      Trustees for cancellation;

so long as in any such event: 

	 	(i) 	
      the Corporation has paid, caused to be paid or made
      provisions to the satisfaction of the Trustees for the payment of all
      other sums payable or which may be payable with respect to all of such
      Debentures (together with all applicable expenses of the Trustees in
      connection with the payment of such Debentures); and

	 	 	 
	 	(ii) 	
      the Corporation has delivered to the Trustees an opinion
      of Counsel and an Officers’ Certificate stating that all conditions
      precedent herein provided relating to the payment, satisfaction and
      discharge of all such Debentures have been complied
with.

Any deposits with the Trustees referred to in this Section 9.5
shall be irrevocable, subject to Section 9.6, and shall be made under the terms
of an escrow and/or trust agreement in form and substance satisfactory to the
Trustees and which provides for the due and punctual payment of the principal
of, premium, if any, and interest on the Debentures being satisfied. 

	 	(b) 	
      Upon the satisfaction of the conditions set forth in this
      Section 9.5 with respect to all the outstanding Debentures, or all the
      outstanding Debentures of any series, as applicable, the terms and
      conditions of the Debentures, including the terms and conditions with
      respect thereto set forth in this Indenture (other than those contained in
      Article 2 and Article 4 and the provisions of Article 1 pertaining to
      Article 2 and Article 4) shall no longer be binding upon or applicable to
      the Corporation.

- 77 - 

	 	(c) 	
      Any funds or obligations deposited with the Trustees
      pursuant to this Section 9.5 shall be denominated in the currency or
      denomination of the Debentures in respect of which such deposit is
      made.

	 	 	 
	 	(d) 	
      If the Trustees are unable to apply any money or
      securities in accordance with this Section 9.5 by reason of any legal
      proceeding or any order or judgment of any court or governmental authority
      enjoining, restraining or otherwise prohibiting such application, the
      Corporation’s obligations under this Indenture and the affected Debentures
      shall be revived and reinstated as though no money or securities had been
      deposited pursuant to this Section 9.5 until such time as the Trustees are
      permitted to apply all such money or securities in accordance with this
      Section 9.5, provided that if the Corporation has made any payment in
      respect of principal of, premium, if any, or interest on Debentures or, as
      applicable, other amounts because of the reinstatement of its obligations,
      the Corporation shall be subrogated to the rights of the holders of such
      Debentures to receive such payment from the money or securities held by
      the Trustees.

	9.6 	
      Continuance of Rights, Duties and
      Obligations

	 	(a) 	
      Where trust funds or trust property have been deposited
      pursuant to Section 9.5, the holders of Debentures and the Corporation
      shall continue to have and be subject to their respective rights, duties
      and obligations under Article 2 and Article 4.

	 	 	 
	 	(b) 	
      In the event that, after the deposit of trust funds or
      trust property pursuant to Section 9.5 in respect of a series of
      Debentures (the “Defeased Debentures”), any holder of any of the
      Defeased Debentures from time to time converts its Debentures to Common
      Shares or other securities of the Corporation in accordance with Section
      2.5(d) (in respect of Initial Debentures or the comparable provision of
      any other series of Debentures), Article 6 or any other provision of this
      Indenture, the Trustees shall upon receipt of a Written Direction of the
      Corporation return to the Corporation from time to time the proportionate
      amount of the trust funds or other trust property deposited with the
      Trustees pursuant to Section 9.5 in respect of the Defeased Debentures
      which is applicable to the Defeased Debentures so converted (which amount
      shall be based on the applicable principal amount of the Defeased
      Debentures being converted in relation to the aggregate outstanding
      principal amount of all the Defeased Debentures). In addition, the
      Corporation shall deliver to the Trustees an opinion of Counsel and an
      Officers’ Certificate stating that all conditions precedent herein
      provided relating to the payment, satisfaction and discharge of the
      Defeased Debentures have been complied with.

	 	 	 
	 	(c) 	
      In the event that, after the deposit of trust funds or
      trust property pursuant to Section 9.5, the Corporation is required to
      make a Change of Control Purchase Offer to purchase any outstanding
      Debentures pursuant to Section 2.5(k) (in respect of Initial Debentures or
      the comparable provision of any other series of Debentures), in relation
      to Initial Debentures or to make an offer to purchase Debentures pursuant
      to any other similar provisions relating to any other series of
      Debentures, the Corporation shall be entitled to direct the Trustees to
      use trust money or trust property deposited with the Trustees pursuant to
Section 9.5 for the purpose of paying to any holders of Defeased Debentures who
have accepted any such offer of the Corporation the Total Offer Price payable to
such holders in respect of such Change of Control Purchase Offer in respect of
Initial Debentures (or the total offer price payable in respect of an offer
relating to any other series of Debentures). Upon receipt of a Written Direction
from the Corporation, the Trustees shall be entitled to pay to such holder from
such trust money or trust property deposited with the Trustees pursuant to
Section 9.5 in respect of the Defeased Debentures which is applicable to the
Defeased Debentures held by such holders who have accepted any such offer to the
Corporation (which amount shall be based on the applicable principal amount of
the Defeased Debentures held by accepting offerees in relation to the aggregate
outstanding principal amount of all the Defeased Debentures). In addition, the
Corporation shall deliver to the Trustees an opinion of Counsel and an Officers’
Certificate stating that all conditions precedent herein provided relating to
the payment, satisfaction and discharge of the Defeased Debentures have been
complied with. 

- 78 - 

ARTICLE 10 
COMMON SHARE INTEREST PAYMENT ELECTION

	10.1 	
      Common Share Interest Payment
    Election

	 	(a) 	
      Provided that no Event of Default has occurred or is
      continuing under this Indenture and that all applicable regulatory and
      stock exchange approvals have been obtained (including any required
      approval of any stock exchange on which the Debentures or Common Shares
      are then listed), the Corporation shall have the right, from time to time
      to make a Common Share Interest Payment Election in respect of any
      Interest Obligation by delivering a Common Share Interest Payment Election
      Notice to the Trustees no later than the earlier of (i) the date required
      by applicable law or the rules of any stock exchange on which the
      Debentures or Common Shares are then listed, and (ii) the day which is 15
      Business Days prior to the Interest Payment Date to which the Common Share
      Interest Payment Election relates. Such Common Share Interest Payment
      Election Notice shall provide that all or a portion of the Interest
      Obligation may be paid by the Corporation in Common Shares, and if only a
      portion of the Interest Obligation is to be paid in Common Shares, the
      Common Share Interest Payment Election shall state such portion to be paid
      in Common Shares and such portion to be paid in cash.

	 	 	 
	 	(b) 	
      Upon receipt of a Common Share Interest Payment Election
      Notice, the Trustees shall, in accordance with this Article 10 and such
      Common Share Interest Payment Election Notice, deliver Common Share Bid
      Requests to the investment banks, brokers or dealers identified by the
      Corporation, in its absolute discretion, in the Common Share Interest
      Payment Election Notice. In connection with the Common Share Interest
      Payment Election, the Trustees shall: (i) accept delivery of the Common
      Shares from the Corporation and process the Common Shares in accordance
      with the Common Share Interest Payment Election Notice; (ii) accept bids
      with respect to, and consummate sales of, such Common Shares, each as the
      Corporation shall direct in its absolute discretion through the investment
      banks, brokers or dealers identified by the Corporation in the
      Common Share Interest Payment Election Notice; (iii) invest the proceeds
      of such sales on the direction of the Corporation in Government
      Obligations which mature prior to an applicable Interest Payment Date and
      use such proceeds to pay the Interest Obligation in respect of which the
      Common Share Interest Payment Election Notice was made; and (iv) perform
      any other action necessarily incidental thereto as directed by the
      Corporation in its absolute discretion. The Common Share Interest Payment
      Election Notice shall direct the Trustees to solicit and accept only, and
      each Common Share Bid Request shall provide that the acceptance of any bid
      is conditional on the acceptance of sufficient bids to result in aggregate
      proceeds from such issue and sale of Common Shares which, together with
      the cash payments by the Corporation in lieu of fractional Common Shares,
      if any, equal the Interest Obligation on the Common Share Delivery
  Date.

- 79 - 

	 	(c) 	
      The Common Share Interest Payment Election Notice shall
      provide for, and all bids shall be subject to, the right of the
      Corporation, by delivering written notice to the Trustees at any time
      prior to the consummation of such delivery and sale of the Common Shares
      on the Common Share Delivery Date, to withdraw the Common Share Interest
      Payment Election (which shall have the effect of withdrawing each related
      Common Share Bid Request), whereupon the Corporation shall be obliged to
      pay in cash the Interest Obligation in respect of which the Common Share
      Interest Payment Election Notice has been delivered.

	 	 	 
	 	(d) 	
      Any sale of Common Shares pursuant to this Article 10 may
      be made to one or more Persons whose bids are solicited, but all such
      sales with respect to a particular Common Share Interest Payment Election
      shall take place concurrently on the Common Share Delivery Date.

	 	 	 
	 	(e) 	
      The amount received by a holder of a Debenture in respect
      of the Interest Obligation or the entitlement thereto will not be affected
      by whether or not the Corporation elects to satisfy the Interest
      Obligation pursuant to a Common Share Interest Payment Election.

	 	 	 
	 	(f) 	
      The Trustees shall inform the Corporation promptly
      following receipt of any bid or bids for Common Shares solicited pursuant
      to the Common Share Bid Requests. The Trustees shall accept such bid or
      bids as the Corporation, in its absolute discretion, shall direct by
      Written Direction of the Corporation, provided that the aggregate proceeds
      of all sales of Common Shares resulting from the acceptance of such bids,
      together with the amount of any cash payment by the Corporation in lieu of
      any fractional Common Shares, on the Common Share Delivery Date, must be
      equal to the related Common Share Interest Payment Election Amount in
      connection with any bids so accepted, the Corporation, the Trustees (if
      required by the Corporation in its absolute discretion) and the applicable
      bidders shall, not later than the Common Share Delivery Date, enter into
      Common Share Purchase Agreements and shall comply with all Applicable
      Securities Legislation and U.S. Securities Laws, including the securities
      rules and regulations of any stock exchange on which the Debentures or
      Common Shares are then listed. The Corporation shall pay all fees and
      expenses in connection with the Common Share Purchase Agreements including the fees and commissions
      charged by the investment banks, brokers and dealers and the fees of the
      Trustees.

- 80 - 

	 	(g) 	
      Provided that: (i) all conditions specified in each
      Common Share Purchase Agreement to the closing of all sales thereunder
      have been satisfied, other than the delivery of the Common Shares to be
      sold thereunder against payment of the purchase price thereof; and (ii)
      the purchasers under each Common Share Purchase Agreement shall be ready,
      willing and able to perform thereunder, in each case on the Common Share
      Delivery Date, the Corporation shall, on the Common Share Delivery Date,
      deliver to the Trustees the Common Shares to be sold on such date, an
      amount in cash equal to the value of any fractional Common Shares and an
      Officers’ Certificate to the effect that all conditions precedent to such
      sales, including those set forth in this Indenture and in each Common
      Share Purchase Agreement, have been satisfied. Upon such deliveries, the
      Trustees shall consummate such sales on such Common Share Delivery Date by
      the delivery of the Common Shares to such purchasers against payment to
      the Trustees in immediately available funds of the purchase price therefor
      in an aggregate amount equal to the Common Share Interest Payment Election
      Amount (less any amount attributable to any fractional Common Shares),
      whereupon the sole right of a holder of Debentures to receive such
      holder’s portion of the Common Share Interest Payment Election Amount will
      be to receive same from the Trustees out of the proceeds of such sales of
      Common Shares plus any amount received by the Trustees from the
      Corporation attributable to any fractional Common Shares in full
      satisfaction of the Interest Obligation and the holder will have no
      further recourse to the Corporation in respect of the Interest
      Obligation.

	 	 	 
	 	(h) 	
      The Trustees shall, on the Common Share Delivery Date,
      use the sale proceeds of the Common Shares (together with any cash
      received from the Corporation in lieu of any fractional Common Shares) to
      purchase, on the direction of the Corporation in writing, Government
      Obligations which mature prior to the applicable Interest Payment Date and
      which the Trustees are required to hold until maturity (the “Common
      Share Proceeds Investment”) and shall, on such date, deposit the
      balance, if any, of such sale proceeds in an account established by the
      Corporation (and which shall be maintained by and subject to the control
      of the Trustees) (the “Interest Account”) for such Debentures. The
      Trustees shall hold such Common Share Proceeds Investment (but not income
      earned thereon) under its exclusive control in an irrevocable trust for
      the benefit of the holders of the Debentures. At least one Business Day
      prior to the Interest Payment Date, the Trustees shall deposit amounts
      from the proceeds of the Common Share Proceeds Investment in the Interest
      Account to bring the balance of the Interest Account to the Common Share
      Interest Payment Election Amount. On the Interest Payment Date, the
      Trustees shall pay the funds held in the Interest Account to the holders
      of record of the Debentures on the Interest Payment Date and, provided
      that there is no Event of Default, shall remit amounts, if any, in respect
      of income earned on the Common Share Proceeds Investment or otherwise in
      excess of the Common Share Interest Payment Election Amount to the
      Corporation.

- 81 - 

	 	(i) 	
      Neither the making of a Common Share Payment Election nor
      the consummation of sales of Common Shares on a Common Share Delivery Date
      shall (i) result in the holders of the Debentures not being entitled to
      receive on the applicable Interest Payment Date cash in an aggregate
      amount equal to the Interest Obligation payable on such date or (ii)
      entitle such holders to receive any Common Shares in satisfaction of such
      Interest Obligation.

	 	 	 
	 	(j) 	
      No fractional Common Shares will be issued in
      satisfaction of interest but in lieu thereof the Corporation will satisfy
      such fractional interest by a cash payment equal to the market price of
      such fractional interest provided, however, that the Corporation shall not
      be required to make any payment of less than
$5.00.

ARTICLE 11 
SUCCESSORS 

	11.1 	
      Corporation may Consolidate, Etc., Only on Certain
      Terms

	 	(a) 	
      The Corporation may not, without the consent of the
      holders, consolidate with or amalgamate or merge with or into any Person
      (other than a directly or indirectly wholly-owned Subsidiary of the
      Corporation) or sell, convey, transfer or lease all or substantially all
      of the properties and assets of the Corporation to another Person (other
      than a directly or indirectly wholly-owned Subsidiary of the Corporation)
      unless:

	 	 	 	 
	 		(i) 	
      the Person formed by such consolidation or into which the
      Corporation is amalgamated or merged, or the Person which acquires by
      sale, conveyance, transfer or lease all or substantially all of the
      properties and assets of the Corporation is a corporation, organized and
      existing under the laws of Canada or any province or territory thereof or
      the laws of the United States or any state thereof and such corporation
      (if other than the Corporation or the continuing corporation resulting
      from the amalgamation of the Corporation with another corporation under
      the laws of Canada or any province or territory thereof) expressly
      assumes, by an indenture supplemental hereto, executed and delivered to
      the Trustees, in form satisfactory to the Trustees, the obligations of the
      Corporation under the Debentures and this Indenture and the performance or
      observance of every covenant and provision of this Indenture and the
      Debentures required on the part of the Corporation to be performed or
      observed and the conversion rights shall be provided for in accordance
      with Article 6, by supplemental indenture satisfactory in form to the
      Trustees, executed and delivered to the Trustees, by the Person (if other
      than the Corporation or the continuing corporation resulting from the
      amalgamation of the Corporation with another corporation under the laws of
      Canada or any province or territory thereof) formed by such consolidation
      or into which the Corporation shall have been merged or by the Person
      which shall have acquired the Corporation’s
assets;

- 82 - 

	 	(ii) 	
      after giving effect to such transaction, no Event of
      Default, and no event which, after notice or lapse of time or both, would
      become an Event of Default, shall have occurred and be continuing;
    and

	 	 	 
	 	(iii) 	
      if the Corporation or the continuing corporation
      resulting from the amalgamation or merger of the Corporation with another
      Person under the laws of Canada or any province or territory thereof or
      the laws of the United States or any state thereof will not be the
      resulting, continuing or surviving corporation, the Corporation shall
      have, at or prior to the effective date of such consolidation,
      amalgamation, merger or sale, conveyance, transfer or lease, delivered to
      the Trustees an Officers’ Certificate and an opinion of Counsel, each
      stating that such consolidation, merger or transfer complies with this
      Article and, if a supplemental indenture is required in connection with
      such transaction, such supplemental indenture complies with this Article,
      and that all conditions precedent herein provided for relating to such
      transaction have been complied with.

	 	(b) 	
      For purposes of the foregoing, the sale, conveyance,
      transfer or lease (in a single transaction or a series of related
      transactions) of the properties or assets of one or more Subsidiaries of
      the Corporation (other than to the Corporation or another wholly-owned
      Subsidiary of the Corporation), which, if such properties or assets were
      directly owned by the Corporation, would constitute all or substantially
      all of the properties and assets of the Corporation and its Subsidiaries,
      taken as a whole, shall be deemed to be the sale, conveyance, transfer or
      lease of all or substantially all of the properties and assets of the
      Corporation.

	11.2 	
      Successor
Substituted

Upon any consolidation of the Corporation with, or amalgamation
or merger of the Corporation into, any other Person or any sale, conveyance,
transfer or lease of all or substantially all of the properties and assets of
the Corporation and its Subsidiaries, taken as a whole, in accordance with
Section 11.1, the successor Person formed by such consolidation or into which
the Corporation is amalgamated or merged or to which such sale, conveyance,
transfer or lease is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Corporation under this Indenture with the
same effect as if such successor Person had been named as the Corporation
herein, and thereafter, except in the case of a lease, and except for
obligations the predecessor Person may have under a supplemental indenture
entered into pursuant to Section 11.1(a)(iii), the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the
Debentures. 

ARTICLE 12 
COMPULSORY ACQUISITION 

	12.1 	
      Definitions

In this Article: 

- 83 - 

	 	(a) 	
      “Affiliate” and “Associate” shall have
      their respective meanings set forth in the

	 	 	 
	 		
      Securities Act (Ontario);

	 	 	 
	 	(b) 	
      “Dissenting Debentureholders” means a
      Debentureholder who does not accept an Offer referred to in Section 12.2
      and includes any assignee of the Debenture of a Debentureholder to whom
      such an Offer is made, whether or not such assignee is recognized under
      this Indenture;

	 	 	 
	 	(c) 	
      “Offer” means an offer to acquire outstanding
      Debentures, which is a takeover bid for Debentures within the meaning
      ascribed thereto in MI 62-104, where as of the date of the offer to
      acquire, the Debentures that are subject to the offer to acquire, together
      with the Offeror’s Debentures, constitute in the aggregate 20% or more of
      the outstanding principal amount of the Debentures;

	 	 	 
	 	(d) 	
      “offer to acquire” includes an acceptance of an
      offer to sell;

	 	 	 
	 	(e) 	
      “Offeror” means a Person, or two or more Persons
      acting jointly or in concert, who make an Offer to acquire
    Debentures;

	 	 	 
	 	(f) 	
      “Offeror’s Debentures” means Debentures
      beneficially owned, or over which control or direction is exercised, on
      the date of an Offer by the Offeror, any Affiliate or Associate of the
      Offeror or any Person or company acting jointly or in concert with the
      Offeror; and

	 	 	 
	 	(g) 	
      “Offeror’s Notice” means the notice described in
      Section 12.3.

	12.2 	
      Offer for
Debentures

If an Offer for all of the outstanding Debentures (other than
Debentures held by or on behalf of the Offeror or an Affiliate or Associate of
the Offeror) is made and: 

	 	(a) 	
      within the time provided in the Offer for its acceptance
      or within 120 days after the date the Offer is made, whichever period is
      the shorter, the Offer is accepted by Debentureholders representing at
      least 90% of the outstanding principal amount of the Debentures, other
      than the Offeror’s Debentures;

	 	 	 
	 	(b) 	
      the Offeror is bound to take up and pay for, or has taken
      up and paid for the Debentures of the Debentureholders who accepted the
      Offer; and

	 	 	 
	 	(c) 	
      the Offeror complies with Sections 12.3 and
  12.5;

the Offeror is entitled to acquire, and the Dissenting
Debentureholders are required to sell to the Offeror, the Debentures held by the
Dissenting Debentureholder for the same consideration per Debenture payable or
paid, as the case may be, under the Offer. 

	12.3 	
      Offeror’s Notice to Dissenting
      Debentureholders

Where an Offeror is entitled to acquire Debentures held by
Dissenting Debentureholders pursuant to Section 12.2 and the Offeror wishes to
exercise such right, the Offeror shall send by registered mail within 30 days after the date of termination of the Offer
a notice (the “Offeror’s Notice”) to each Dissenting Debentureholder
stating that: 

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	 	(a) 	
      Debentureholders holding at least 90% of the principal
      amount of all outstanding Debentures, other than Offeror’s Debentures,
      have accepted the Offer;

	 	 	 
	 	(b) 	
      the Offeror is bound to take up and pay for, or has taken
      up and paid for, the Debentures of the Debentureholders who accepted the
      Offer;

	 	 	 
	 	(c) 	
      Dissenting Debentureholders must transfer their
      respective Debentures to the Offeror on the terms on which the Offeror
      acquired the Debentures of the Debentureholders who accepted the Offer
      within 21 days after the date of the sending of the Offeror’s Notice;
      and

	 	 	 
	 	(d) 	
      Dissenting Debentureholders must send their respective
      Debenture certificate(s) to the Trustees within 21 days after the date of
      the sending of the Offeror’s Notice.

	12.4 	
      Delivery of Debenture
  Certificates

A Dissenting Debentureholder to whom an Offeror’s Notice is
sent pursuant to Section 12.3 shall, within 21 days after the sending of the
Offeror’s Notice, send his or her Debenture certificate(s) to the Trustees duly
endorsed for transfer. 

	12.5 	
      Payment of Consideration to
  Trustees

Within 21 days after the Offeror sends an Offeror’s Notice
pursuant to Section 12.3, the Offeror shall pay or transfer to the Trustees, or
to such other Person as the Trustees may direct, the cash or other consideration
that is payable to Dissenting Debentureholders pursuant to Section 12.2. The
acquisition by the Offeror of all Debentures held by all Dissenting
Debentureholders shall be effective as of the time of such payment or transfer.

	12.6 	
      Consideration to be Held in
  Trust

The Trustees, or the Person directed by the Trustees, shall
hold in trust for the Dissenting Debentureholders the cash or other
consideration they or it receives under Section 12.5. The Trustees, or such
Persons, shall deposit cash in a separate account in a Canadian chartered bank,
or other body corporate, any of whose deposits are insured by the Canada Deposit
Insurance Corporation, and shall place other consideration in the custody of a
Canadian chartered bank or such other body corporate. 

	12.7 	
      Completion of Transfer of Debentures to
      Offeror

Within 30 days after the date of the sending of an Offeror’s
Notice pursuant to Section 12.3, the Trustees, if the Offeror has complied with
Section 12.5, shall: 

	 	(a) 	
      do all acts and things and execute and cause to be
      executed all instruments as in the Trustees’ opinion may be necessary or
      desirable to cause the transfer of the Debentures of the Dissenting
      Debentureholders to the Offeror;

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	 	(b) 	
      send to each Dissenting Debentureholder who has complied
      with Section 12.4 the consideration to which such Dissenting
      Debentureholder is entitled under this Article 12; and

	 	 	 
	 	(c) 	
      send to each Dissenting Debentureholder who has not
      complied with Section 12.4 a notice stating
that:

	 	(i) 	
      his or her Debentures have been transferred to the
      Offeror;

	 	 	 
	 	(ii) 	
      the Trustees or some other Person designated in such
      notice are holding in trust the consideration for such Debentures;
    and

	 	 	 
	 	(iii) 	
      the Trustees, or such other Person, will send the
      consideration to such Dissenting Debentureholder as soon as possible after
      receiving such Dissenting Debentureholder’s Debenture certificate(s) or
      such other documents as the Trustees or such other Person may require in
      lieu thereof;

and the Trustees are hereby appointed
the agent and attorney of the Dissenting Debentureholders for the purposes of
giving effect to the foregoing provisions. 

	12.8 	
      Communication of Offer to
  Trust

An Offeror cannot make an Offer for Debentures unless,
concurrent with the communication of the Offer to any Debentureholder, a copy of
the Offer is provided to the Corporation. 

ARTICLE 13 
MEETINGS OF DEBENTUREHOLDERS 

	13.1 	
      Right to Convene
Meeting

The Trustees may at any time and from time to time, and the
Trustees shall, on receipt of a Written Direction of the Corporation or a
written request signed by the holders of not less than 25% of the principal
amount of the Debentures then outstanding and upon receiving funding and being
indemnified to their reasonable satisfaction by the Corporation or by the
Debentureholders signing such request against the costs which may be incurred in
connection with the calling and holding of such meeting, convene a meeting of
the Debentureholders. In the event of the Trustees failing, within 30 days after
receipt of any such request and such funding of indemnity, to give notice
convening a meeting, the Corporation or such Debentureholders, as the case may
be, may convene such meeting. Every such meeting shall be held in Toronto,
Ontario or Denver, Colorado or at such other place as may be approved or
determined by the Trustees, the Corporation or such Debentureholders as convened
in accordance with this Section 13.1. 

	13.2 	
      Notice of
Meetings

	 	(a) 	
      At least 21 days’ notice of any meeting shall be given to
      the Debentureholders in the manner provided in Section 14.2 and a copy of
      such notice shall be sent by post to the Trustees (unless the meeting has
      been called by them) and the Issuer (unless the meeting has been called by
      it). Such notice shall state the time when and the place where the meeting
      is to be held and shall state briefly the general nature of the business
      to be transacted thereat and it shall not be necessary for
  any such notice to set out the terms of any resolution to be
      proposed or any of the provisions of this Article. The accidental omission
      to give notice of a meeting to any holder of Debentures shall not
      invalidate any resolution passed at any such meeting. A holder may waive
  notice of a meeting either before or after the meeting.

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	 	(b) 	
      If the business to be transacted at any meeting by
      Extraordinary Resolution or otherwise, or any action to be taken or power
      exercised by instrument in writing under Section 13.16, especially affects
      the rights of holders of Debentures of one or more series in a manner or
      to an extent differing in any material way from that in or to which the
      rights of holders of Debentures of any other series are affected
      (determined as provided in Sections 13.2(c) and (d)),
  then:

	 	(i) 	
      a reference to such fact, indicating each series of
      Debentures in the opinion of the Trustees so especially affected
      (hereinafter referred to as the “especially affected series”) shall
      be made in the notice of such meeting, and in any such case the meeting
      shall be and be deemed to be and is herein referred to as a “Serial
      Meeting”; and

	 	 	 	 
	 	(ii) 	
      the holders of Debentures of an especially affected
      series shall not be bound by any action taken at a Serial Meeting or by
      instrument in writing under Section 13.16 unless in addition to compliance
      with the other provisions of this Article 13:

	 	 	 	 
	 		(A) 	
      at such Serial Meeting: (I) there are Debentureholders
      present in Person or by proxy and representing at least 25% in principal
      amount of the Debentures then outstanding of such series, subject to the
      provisions of this Article 13 as to quorum at adjourned meetings; and (II)
      the resolution is passed by the affirmative vote of the holders of more
      than 50% (or in the case of an Extraordinary Resolution not less than
      66-2/3%) of the principal amount of the Debentures of such series then
      outstanding voted on the resolution; or

	 	 	 	 
	 		(B) 	
      in the case of action taken or power exercised by
      instrument in writing under Section 13.16, such instrument is signed in
      one or more counterparts by the holders of not less than 66-2/3% in
      principal amount of the Debentures of such series then
  outstanding.

	 	(c) 	
      Subject to Section 13.2(d), the determination as to
      whether any business to be transacted at a meeting of Debentureholders, or
      any action to be taken or power to be exercised by instrument in writing
      under Section 13.16, especially affects the rights of the Debentureholders
      of one or more series in a manner or to an extent differing in any
      material way from that in or to which it affects the rights of
      Debentureholders of any other series (and is therefore an especially
      affected series) shall be determined by an opinion of Counsel, which shall
      be binding on all Debentureholders, the Trustees and the Corporation for
      all purposes hereof.

	 	 	 
	 	(d) 	
      A proposal:

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	 	(i) 	
      to modify or terminate any covenant or agreement which by
      its terms is effective only so long as Debentures of a particular series
      are outstanding;

	 	 	 
	 	(ii) 	
      to extend the maturity of Debentures of any particular
      series or to reduce the principal amount thereof, the rate of interest or
      redemption premium thereon or to impair any conversion right thereof;
      or

	 	 	 
	 	(iii) 	
      shall be deemed to especially affect the rights of the
      Debentureholders of such series in a manner differing in a material way
      from that in which it affects the rights of holders of Debentures of any
      other series, whether or not a similar extension, reduction, modification
      or termination is proposed with respect to Debentures of any or all other
      series.

	13.3 	
      Chairman

Some Person, who need not be a Debentureholder, nominated in
writing by the Trustees shall be chairman of the meeting and if no Person is so
nominated, or if the Person so nominated is not present within 15 minutes from
the time fixed for the holding of the meeting, a majority of the
Debentureholders present in Person or by proxy shall choose some Person present
to be chairman. 

	13.4 	
      Quorum

Subject to the provisions of Section 13.12, at any meeting of
the Debentureholders a quorum shall consist of Debentureholders present in
Person or by proxy and representing at least 25% in principal amount of the
outstanding Debentures and, if the meeting is a Serial Meeting, at least 25% of
the Debentures then outstanding of each especially affected series. If a quorum
of the Debentureholders shall not be present within 30 minutes from the time
fixed for holding any meeting, the meeting, if summoned by the Debentureholders
or pursuant to a request of the Debentureholders, shall be dissolved, but in any
other case the meeting shall be adjourned to the same day in the next week
(unless such day is not a Business Day in which case it shall be adjourned to
the next following Business Day thereafter) at the same time and place and no
notice shall be required to be given in respect of such adjourned meeting. At
the adjourned meeting, the Debentureholders present in Person or by proxy shall,
subject to the provisions of Section 13.12, constitute a quorum and may transact
the business for which the meeting was originally convened notwithstanding that
they may not represent 25% of the principal amount of the outstanding Debentures
or of the Debentures then outstanding of each especially affected series. Any
business may be brought before or dealt with at an adjourned meeting which might
have been brought before or dealt with at the original meeting in accordance
with the notice calling the same. No business shall be transacted at any meeting
unless the required quorum be present at the commencement of business. 

	13.5 	
      Power to Adjourn

The chairman of any meeting at which a quorum of the
Debentureholders is present may, with the consent of the holders of a majority
in principal amount of the Debentures represented thereat, adjourn any such
meeting and no notice of such adjournment need be given except such notice, if
any, as the meeting may prescribe. 

- 88 - 

	13.6 	
      Show of Hands

Every question submitted to a meeting shall, subject to Section
13.7, be decided in the first place by a majority of the votes given on a show
of hands except that votes on Extraordinary Resolutions shall be given in the
manner hereinafter provided. At any such meeting, unless a poll is duly demanded
as herein provided, a declaration by the chairman that a resolution has been
carried or carried unanimously or by a particular majority or lost or not
carried by a particular majority shall be conclusive evidence of the fact. The
chairman of any meeting shall be entitled, both on a show of hands and on a
poll, to vote in respect of the Debentures, if any, held by him. 

	13.7 	
      Poll

On every Extraordinary Resolution, and on any other question
submitted to a meeting when demanded by the chairman or by one or more
Debentureholders or proxies for Debentureholders, a poll shall be taken in such
manner and either at once or after an adjournment as the chairman shall direct.
Questions other than Extraordinary Resolutions shall, if a poll be taken, be
decided by the votes of the holders of a majority in principal amount of the
Debentures and of each especially affected series, if applicable, represented at
the meeting and voted on the poll. 

	13.8 	
      Voting

On a show of hands every Person who is present and entitled to
vote, whether as a Debentureholder or as proxy for one or more Debentureholders
or both, shall have one vote. On a poll each Debentureholder present in Person
or represented by a proxy duly appointed by an instrument in writing shall be
entitled to one vote in respect of each $1,000 principal amount of Debentures of
which he shall then be the holder. In the case of any Debenture denominated in a
currency or currency unit other than Canadian dollars, the principal amount
thereof for these purposes shall be computed in Canadian dollars on the basis of
the conversion of the principal amount thereof at the applicable spot buying
rate of exchange for such other currency or currency unit as reported by the
Bank of Canada at the close of business on the Business Day next preceding the
meeting. Any fractional amounts resulting from such conversion shall be rounded
to the nearest $100. A proxy need not be a Debentureholder. In the case of joint
holders of a Debenture, any one of them present in Person or by proxy at the
meeting may vote in the absence of the other or others but in case more than one
of them be present in Person or by proxy, they shall vote together in respect of
the Debentures of which they are joint holders. 

	13.9 	
      Proxies

A Debentureholder may be present and vote at any meeting of
Debentureholders by an authorized representative. The Trustees, or the
Corporation with the approval of the Trustees, for the purpose of enabling the
Debentureholders to be present and vote at any meeting without producing their
Debentures, and of enabling them to be present and vote at any such meeting by
proxy and of lodging instruments appointing such proxies at some place other
than the place where the meeting is to be held, may from time to time make and
vary such regulations as it shall think fit providing for and governing any or
all of the following matters: 

	 	(a) 	
      the form of the instrument appointing a proxy, which
      shall be in writing, and the manner in which the same shall be executed
      and the production of the authority of any Person signing on behalf of a
      Debentureholder;

- 89 - 

	 	(b) 	
      the deposit of instruments appointing proxies at such
      place as the Trustees, the Corporation or the Debentureholder convening
      the meeting, as the case may be, may, in the notice convening the meeting,
      direct and the time, if any, before the holding of the meeting or any
      adjournment thereof by which the same must be deposited;

	 	 	 
	 	(c) 	
      the deposit of instruments appointing proxies at some
      approved place or places other than the place at which the meeting is to
      be held and enabling particulars of such instruments appointing proxies to
      be mailed, faxed, cabled, telegraphed or sent by other electronic means
      before the meeting to the Corporation or to the Trustees at the place
      where the same is to be held and for the voting of proxies so deposited as
      though the instruments themselves were produced at the meeting;
  and

	 	 	 
	 	(d) 	
      generally for the calling of a meeting of Holders and the
      conduct of business thereat.

Any regulations so made shall be binding and effective and the
votes given in accordance therewith shall be valid and shall be counted. Save as
such regulations may provide, the only Persons who shall be recognized at any
meeting as the holders of any Debentures, or as entitled to vote or be present
at the meeting in respect thereof, shall be Debentureholders and Persons whom
Debentureholders have by instrument in writing duly appointed as their proxies.

	13.10 	
      Persons Entitled to Attend
  Meetings

The Corporation and the Trustees by their respective officers
and directors, the Auditors of the Corporation and the legal advisors of the
Corporation, the Trustees or any Debentureholder may attend any meeting of the
Debentureholders, but shall have no vote as such. 

	13.11 	
      Powers Exercisable by Extraordinary
      Resolution

In addition to the powers conferred upon them by any other
provisions of this Indenture or by law, a meeting of the Debentureholders shall
have the following powers exercisable from time to time by Extraordinary
Resolution, subject to Section 13.13 and subject in the case of the matters in
paragraphs (a), (b), (c), (d) and (l) to receipt of the prior approval of the
Toronto Stock Exchange or such other exchange on which the Debentures are then
listed: 

	 	(a) 	
      power to sanction any modification, abrogation,
      alteration, compromise or arrangement of the rights of the
      Debentureholders or the Trustees against the Corporation, or against their
      property, whether such rights arise under this Indenture or the Debentures
      or otherwise;

	 	 	 
	 	(b) 	
      power to assent to any modification of or change in or
      addition to or omission from the provisions contained in this Indenture or
      any Debenture which shall be agreed to by the Corporation and to authorize
      the Trustees to concur in and execute any indenture supplemental hereto
      embodying any modification, change, addition or omission;

	 	 	 
	 	(c) 	
      power to sanction any scheme for the reconstruction,
      reorganization or recapitalization of the Corporation or for the
      consolidation, amalgamation, arrangement, combination or merger of the Corporation
      with any other Person or for the sale, leasing, transfer or other
      disposition of all or substantially all of the undertaking, property and
      assets of the Corporation or any part thereof, provided that no such
      sanction shall be necessary in respect of any such transaction if the
  provisions of Section 11.1 shall have been complied with;

- 90 - 

	 	(d) 	
      power to direct or authorize the Trustees to exercise any
      power, right, remedy or authority given to it by this Indenture in any
      manner specified in any such Extraordinary Resolution or to refrain from
      exercising any such power, right, remedy or authority;

	 	 	 
	 	(e) 	
      power to waive, and direct the Trustee to waive, any
      default hereunder and/or cancel any declaration made by the Trustees
      pursuant to Section 8.1 either unconditionally or upon any condition
      specified in such Extraordinary Resolution;

	 	 	 
	 	(f) 	
      power to restrain any Debentureholder from taking or
      instituting any suit, action or proceeding for the purpose of enforcing
      payment of the principal, premium or interest on the Debentures, or for
      the execution of any trust or power hereunder;

	 	 	 
	 	(g) 	
      power to direct any Debentureholder who, as such, has
      brought any action, suit or proceeding to stay or discontinue or otherwise
      deal with the same upon payment, if the taking of such suit, action or
      proceeding shall have been permitted by Section 8.5, of the costs, charges
      and expenses reasonably and properly incurred by such Debentureholder in
      connection therewith;

	 	 	 
	 	(h) 	
      power to assent to any compromise or arrangement with any
      creditor or creditors or any class or classes of creditors, whether
      secured or otherwise, and with holders of any shares or other securities
      of the Corporation;

	 	 	 
	 	(i) 	
      power to appoint a committee with power and authority
      (subject to such limitations, if any, as may be prescribed in the
      resolution) to exercise, and to direct the Trustees to exercise, on behalf
      of the Debentureholders, such of the powers of the Debentureholders as are
      exercisable by Extraordinary Resolution or other resolution as shall be
      included in the resolution appointing the committee. The resolution making
      such appointment may provide for payment of the expenses and disbursements
      of and compensation to such committee. Such committee shall consist of
      such number of Persons as shall be prescribed in the resolution appointing
      it and the members need not be themselves Debentureholders. Every such
      committee may elect its chairman and may make regulations respecting its
      quorum, the calling of its meetings, the filling of vacancies occurring in
      its number and its procedure generally. Such regulations may provide that
      the committee may act at a meeting at which a quorum is present or may act
      by minutes signed by the number of members thereof necessary to constitute
      a quorum. All acts of any such committee within the authority delegated to
      it shall be binding upon all Debentureholders. Neither the committee nor
      any member thereof shall be liable for any loss arising from or in
      connection with any action taken or omitted to be taken by them in good
      faith;

- 91 - 

	 	(j) 	
      power to remove the Trustees from office and to appoint a
      new Trustee or Trustees provided that no such removal shall be effective
      unless and until a new Trustee or Trustees shall have become bound by this
      Indenture; and

	 	 	 
	 	(k) 	
      power to amend, alter or repeal any Extraordinary
      Resolution previously passed or sanctioned by the Debentureholders or by
      any committee appointed pursuant to Section
13.11(i).

Notwithstanding the foregoing provisions of this Section 13.11
none of such provisions shall in any manner allow or permit any amendment,
modification, abrogation or addition to the provisions of Article 5 which could
reasonably be expected to detrimentally affect the rights, remedies or recourse
of the priority of the Senior Creditors. 

	13.12 	
      Meaning of “Extraordinary
  Resolution”

	 	(a) 	
      The expression “Extraordinary Resolution” when
      used in this Indenture means, subject as hereinafter in this Article
      provided, a resolution proposed to be passed as an Extraordinary
      Resolution at a meeting of Debentureholders (including an adjourned
      meeting) duly convened for the purpose and held in accordance with the
      provisions of this Article at which the holders of not less than 25% of
      the principal amount of the Debentures then outstanding, and if the
      meeting is a Serial Meeting, at which holders of not less than 25% of the
      principal amount of the Debentures then outstanding of each especially
      affected series, are present in Person or by proxy and passed by the
      favourable votes of the holders of not less than 66 2/3% of the principal
      amount of the Debentures, and if the meeting is a Serial Meeting by the
      affirmative vote of the holders of not less than 66 2/3% of each
      especially affected series, in each case present or represented by proxy
      at the meeting and voted upon on a poll on such resolution.

	 	 	 	 
	 	(b) 	
      If, at any such meeting, the holders of not less than 25%
      of the principal amount of the Debentures then outstanding and, if the
      meeting is a Serial Meeting, 25% of the principal amount of the Debentures
      then outstanding of each especially affected series, in each case are not
      present in Person or by proxy within 30 minutes after the time appointed
      for the meeting, then the meeting, if convened by or on the requisition of
      Debentureholders, shall be dissolved but in any other case it shall stand
      adjourned to such date, being not less than 14 nor more than 60 days
      later, and to such place and time as may be appointed by the chairman. Not
      less than 10 days’ notice shall be given of the time and place of such
      adjourned meeting in the manner provided in Section 14.2. Such notice
      shall state that at the adjourned meeting the Debentureholders present in
      Person or by proxy shall form a quorum. At the adjourned meeting the
      Debentureholders present in Person or by proxy shall form a quorum and may
      transact the business for which the meeting was originally convened and a
      resolution proposed at such adjourned meeting and passed thereat by the
      affirmative vote of holders of not less than 66-2/3% of the principal
      amount of the Debentures and, if the meeting is a Serial Meeting, by the
      affirmative vote of the holders of not less than 66-2/3% of the principal
      amount of the Debentures of each especially affected series, in each case
      present or represented by proxy at the meeting voted upon on a poll shall
      be an Extraordinary Resolution within the meaning of this Indenture,
      notwithstanding that the holders of not less than 25% in principal amount
      of the Debentures then outstanding, and if the meeting is a Serial
      Meeting, holders of not less than 25% of the principal amount of the
      Debentures then outstanding of each especially affected series, are not
  present in Person or by proxy at such adjourned meeting.

- 92 - 

	 	(c) 	
      Votes on an Extraordinary Resolution shall always be
      given on a poll and no demand for a poll on an Extraordinary Resolution
      shall be necessary.

	13.13 	
      Amendments, Supplements and Waivers Requiring
      Consent of Each Holder

Notwithstanding anything in this Indenture to the contrary,
without the consent of each Debentureholder affected, an amendment, supplement
or waiver of or with respect to any provision of this Indenture, whether
pursuant to this Article 13 or otherwise, may not (with respect to any Debenture
held by a non-consenting holder): 

(i)     change the Stated Maturity of the
principal of, or any installment of principal of or interest on, the Debentures,
or reduce the principal amount thereof or the rate of interest thereon or any
premium payable upon the redemption thereof, or reduce the amount of the
principal of an original issue discount security that would be due and payable
upon a declaration of acceleration of the maturity thereof pursuant to this
Indenture, or change any place of payment where, or the coin or currency in
which, the Debentures or any premium or the interest thereon is payable, or
impair the right to institute suit for the enforcement of any such payment on or
after the Stated Maturity thereof (or, in the case of redemption, on or after
the redemption date therefor); 

(ii)     reduce the percentage in principal
amount of the then-outstanding Debentures, the consent of whose holders is
required for any such amendment, supplement or waiver; 

(iii)     modify any of the provisions set
forth in (A) the provisions of this Indenture related to the holder’s
unconditional right to receive principal, premium, if any, and interest on the
Debentures or (B) the provisions of this Indenture related to the waiver of past
Defaults under this Indenture except to increase any such percentage or to
provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each then-outstanding Debenture
affected thereby; 

(iv)     waive a redemption payment with
respect to any Debenture; 

(v)     make any change that adversely
affects the right of any holder to convert the Debenture into shares of Common
Shares or reduce the number of shares of Common Shares receivable upon
conversion pursuant to the terms of this Indenture as in effect on the date
hereof; or 

(vi)     make any change in the foregoing
amendment and waiver provisions of this Indenture. 

	13.14 	
      Powers Cumulative

Any one or more of the powers in this Indenture stated to be
exercisable by the Debentureholders by Extraordinary Resolution or otherwise may
be exercised from time to time and the exercise of any one or more of such powers from time to time shall not be
deemed to exhaust the rights of the Debentureholders to exercise the same or any
other such power or powers thereafter from time to time. 

- 93 - 

	13.15 	
      Minutes

Minutes of all resolutions and proceedings at every meeting as
aforesaid shall be made and duly entered in books to be from time to time
provided for that purpose by the Trustees at the expense of the Corporation, and
any such minutes as aforesaid, if signed by the chairman of the meeting at which
such resolutions were passed or proceedings had, or by the chairman of the next
succeeding meeting of the Debentureholders, shall be prima facie evidence of the
matters therein stated and, until the contrary is proved, every such meeting, in
respect of the proceedings of which minutes shall have been made, shall be
deemed to have been duly held and convened, and all resolutions passed thereat
or proceedings taken thereat to have been duly passed and taken. 

	13.16 	
      Instruments in
Writing

All actions which may be taken and all powers that may be
exercised by the Debentureholders at a meeting held as hereinbefore in this
Article provided may also be taken and exercised by the holders of 66-2/3% of
the principal amount of all the outstanding Debentures and, if the meeting at
which such actions might be taken would be a Serial Meeting, by the holders of
66-2/3% of the principal amount of the Debentures then outstanding of each
especially affected series, by an instrument in writing signed in one or more
counterparts and the expression “Extraordinary Resolution” when used in this
Indenture shall include an instrument so signed. 

	13.17 	
      Binding Effect of
  Resolutions

Every resolution and every Extraordinary Resolution passed in
accordance with the provisions of this Article at a meeting of Debentureholders
shall be binding upon all the Debentureholders, whether present at or absent
from such meeting, and every instrument in writing signed by Debentureholders in
accordance with Section 13.16 shall be binding upon all the Debentureholders,
whether signatories thereto or not, and each and every Debentureholder and the
Trustees (subject to the provisions for its indemnity herein contained) shall be
bound to give effect accordingly to every such resolution, Extraordinary
Resolution and instrument in writing. 

	13.18 	
      Evidence of Rights of
    Debentureholders

	 	(a) 	
      Any request, direction, notice, consent or other
      instrument which this Indenture may require or permit to be signed or
      executed by the Debentureholders may be in any number of concurrent
      instruments of similar tenor signed or executed by such
      Debentureholders.

	 	 	 
	 	(b) 	
      The Trustees may, in their discretion, require proof of
      execution in cases where it deems proof desirable and may accept such
      proof as it shall consider proper.

	13.19 	
      Concerning Serial
Meetings

If in the opinion of Counsel any business to be transacted at
any meeting, or any action to be taken or power to be exercised by instrument in
writing under Section 13.16, does not adversely affect the rights of the holders
of Debentures of one or more series, the provisions of this Article 13 shall apply as if the Debentures of such series were
not outstanding and no notice of any such meeting need be given to the holders
of Debentures of such series. Without limiting the generality of the foregoing,
a proposal to modify or terminate any covenant or agreement which is effective
only so long as Debentures of a particular series are outstanding shall be
deemed not to adversely affect the rights of the holders of Debentures of any
other series. 

- 94 - 

	13.20 	
      Trustees’ Rights and
  Obligations

The Trustees shall be provided with, and will be fully
protected in conclusively relying upon, in addition to the documents required by
Section 1.20 an Officer’s Certificate and an opinion of Counsel stating that the
execution of any amendment, supplement or waiver authorized pursuant to this
Article is authorized or permitted by this Indenture. If the Trustees have
received such an opinion of Counsel, they shall sign the amendment, supplement
or waiver so long as the same does not adversely affect the rights of the
Trustees. The Trustees may, but are not obligated to, execute any amendment,
supplement or waiver that affects the Trustees’ own rights, duties or immunities
under this Indenture. 

ARTICLE 14 
NOTICES 

	14.1 	
      Notice to
Corporation

Any notice to the Corporation under the provisions of this
Indenture shall be valid and effective if delivered to the Corporation at: 225
Union Boulevard, Suite 600, Lakewood, Colorado 80228, Attention: Chief Financial
Officer, and a copy delivered to Borden Ladner Gervais LLP, Scotia Plaza, 40,
King Street West, Toronto, Ontario, M5H 3Y4, Attention: Mark Wheeler, or if
given by registered letter, postage prepaid, to such offices and so addressed
and if mailed, shall be deemed to have been effectively given three days
following the mailing thereof. The Corporation may from time to time notify the
Trustees in writing of a change of address which thereafter, until changed by
like notice, shall be the address of the Corporation for all purposes of this
Indenture. 

	14.2 	
      Notice to
Debentureholders

All notices to be given hereunder with respect to the
Debentures shall be deemed to be validly given to the holders thereof if sent by
first class mail, postage prepaid, by letter or circular addressed to such
holders at their post office addresses appearing in any of the registers
hereinbefore mentioned and shall be deemed to have been effectively given three
days following the day of mailing. Accidental error or omission in giving notice
or accidental failure to mail notice to any Debentureholder or the inability of
the Corporation to give or mail any notice due to anything beyond the reasonable
control of the Corporation shall not invalidate any action or proceeding founded
thereon. 

If any notice given in accordance with the foregoing paragraph
would be unlikely to reach the Debentureholders to whom it is addressed in the
ordinary course of post by reason of an interruption in mail service, whether at
the place of dispatch or receipt or both, the Corporation shall give such notice
by publication at least once in Toronto, Ontario, each such publication to be
made in a daily newspaper of general circulation in the designated city. 

- 95 - 

Any notice given to Debentureholders by publication shall be
deemed to have been given on the day on which publication shall have been
effected at least once in each of the newspapers in which publication was
required. 

All notices with respect to any Debenture may be given to
whichever one of the holders thereof (if more than one) is named first in the
registers hereinbefore mentioned, and any notice so given shall be sufficient
notice to all holders of any Persons interested in such Debenture. 

	14.3 	
      Notice to Trustees

Any notice to the Canadian Trustee under the provisions of this
Indenture shall be valid and effective if delivered to the Canadian Trustee at
its principal office in the City of Toronto, at 320 Bay Street, 11th
Floor, Toronto, Ontario, M5H 4A6, Attention: Vice President, Transaction
Management Group, Facsimile No: 416-360-1711 or if given by registered
letter, postage prepaid, to such office and so addressed and, if mailed, shall
be deemed to have been effectively given three days following the mailing
thereof. Any notice to the U.S. Trustee under the provisions of this Indenture
shall be valid and effective if delivered to the U.S. Trustee at its principal
office in the City of New York, at 101 Barclay Street, Floor 7E, New York, New
York, United States, 10286, Attention: Manager, Global Americas, Facsimile No:
212-815-5366 or if given by registered letter, postage prepaid, to such office
and so addressed and, if mailed, shall be deemed to have been effectively given
three days following the mailing thereof. The Canadian Trustee and the U.S.
Trustee may from time to time notify the Corporation in writing of a change
address which thereafter, until change by like notice, shall be the address of
the Canadian Trustee or the U.S. Trustee, as applicable, for all purposes of
this Indenture. 

	14.4 	
      Mail Service
Interruption

If by reason of any interruption of mail service, actual or
threatened, any notice to be given to the Trustees would reasonably be unlikely
to reach its destination by the time notice by mail is deemed to have been given
pursuant to Section 14.3, such notice shall be valid and effective only if
delivered at the appropriate address in accordance with Section 14.3. 

ARTICLE 15 
CONCERNING THE TRUSTEES 

	15.1 	
      General

(a)     The duties and responsibilities of
the Trustees are as provided by the Trust Indenture Act and are as set forth
herein. Whether or not expressly so provided, every provision of this Indenture
relating to the conduct or affecting the liability of or affording protection to
the Trustees is subject to this Article 15. 

(b)     Except during the continuance of an
Event of Default, the Trustees need perform only those duties that are
specifically set forth in this Indenture and no others, and no implied covenants
or obligations will be read into this Indenture against the Trustees. In case an
Event of Default has occurred and is continuing, the Trustees shall exercise
those rights and powers vested in it by this Indenture, and use the same degree
of care and skill in their exercise, as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs. In the case
of the Canadian Trustee, it shall duly observe and comply with the provisions
of any legislation and regulation which relate to the functions
or role of the Canadian Trustee as fiduciary hereunder. 

- 96 - 

 

(c)     No provision of this Indenture
shall be construed to relieve the Trustees from liability for their own
negligent action, their own negligent failure to act or their own willful
misconduct. 

	15.2 	
      Certain Rights of
Trustees

Subject to Sections 315(a) through (d) of the Trust Indenture
Act: 

(a)     In the absence of bad faith on
their part, the Trustees may conclusively rely, and will be protected in acting
or refraining from acting, upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by them to be genuine and to have been signed or presented by the
proper Person. The Trustees need not investigate any fact or matter stated in
the document, but, in the case of any document which is specifically required to
be furnished to the Trustees pursuant to any provision hereof, the Trustees
shall examine the document to determine whether it conforms to the requirements
of this Indenture (but need not confirm or investigate the accuracy of
mathematical calculations or other facts stated therein). The Trustees, in their
discretion, may make further inquiry or investigation into such facts or matters
as they see fit.

(b)     Before the Trustees act or refrain
from acting, they may require an Officers’ Certificate or an opinion of Counsel
conforming to Sections 1.20 and 1.21 and the Trustees will not be liable for any
action they takes or omits to take in good faith in reliance on the certificate
or opinion. 

(c)     The Trustees may act through its
attorneys and agents and will not be responsible for the misconduct or
negligence of any agent appointed with due care. 

(d)     If an Event of Default occurs and
is continuing, the Trustees will be under no obligation to exercise any of the
rights or powers vested in them by this Indenture at the request or direction of
any of the holders, unless such holders have offered to the Trustees reasonable
security or indemnity satisfactory to them against the loss, liability or
expense that might be incurred by them in compliance with such request or
direction. 

(e)     The Trustees will not be liable for
any action they take or omit to take in good faith that they believe to be
authorized or within their rights or powers or for any action they take or omit
to take in accordance with the direction of the holders in accordance with
Sections 8.1, 8.3 and 8.7 relating to the time, place and manner of conducting
any proceeding for any remedy available to the Trustees, or exercising any trust
or power conferred upon the Trustees, under this Indenture. 

(f)     The Trustees may consult with
counsel of their selection, and the advice of such counsel or any Opinion of
Counsel will be full and complete authorization and protection in respect of any
action taken, suffered or omitted by them hereunder in good faith and in
reliance thereon. 

- 97 - 

(g)     No provision of this Indenture will
require the Trustees to expend or risk their own funds or otherwise incur any
financial liability in the performance of their duties hereunder, or in the
exercise of their rights or powers, unless they receive indemnity satisfactory
to them against any loss, liability or expense. 

(h)     The Trustees shall not be deemed to
have notice of any Default or Event of Default unless an officer of a Trustee
has actual knowledge thereof or unless written notice of any event which is in
fact such a default is received by the a Trustee, and such notice references the
Debentures and this Indenture. 

(i)     The rights, privileges,
protections, immunities and benefits given to the Trustees, including, without
limitation, their right to be indemnified, are extended to, and shall be
enforceable by, the Trustees in their capacities hereunder, and each agent,
custodian and other Person employed to act hereunder; 

(j)     The Trustees may request that the
Corporation deliver an Officers’ Certificate setting forth the names of
individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by
any person authorized to sign an Officers’ Certificate, including any person
specified as so authorized in any such certificate previously delivered and not
superseded; and 

(k)     The Trustees shall not be liable
for any consequential, punitive, indirect or special damages. 

	15.3 	
      Replacement of
Trustees

(a)     (1)     A
Trustee may resign at any time by written notice to the Corporation. 

(2)     The holders pursuant to an
Extraordinary Resolution may remove a Trustee by written notice to the Trustees.

(3)     If a Trustee is no longer eligible
under Section 15.9 or in the circumstances described in Section 310(b) Trust
Indenture Act, any holder that satisfies the requirements of Section 310(b) of
the Trust Indenture Act may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee. 

(4)     The Corporation may remove a
Trustee if: (i) the Trustee is no longer eligible under Section 15.9; (ii) the
Trustee is adjudged a bankrupt or an insolvent; (iii) a receiver or other public
officer takes charge of the Trustee or their property; or (iv) the Trustee
becomes incapable of acting.

A resignation or removal of a Trustee and appointment of a
successor Trustee will become effective only upon the successor Trustee’s
acceptance of appointment as provided in this Section 15.7. 

(b)     If a Trustee has been removed by
the holders, holders pursuant to an Extraordinary Resolution may appoint a
successor Trustee. Otherwise, if a Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any reason, the
Corporation will promptly appoint a successor Trustee. If the successor Trustee
does not deliver its written acceptance within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Corporation or any
Debentureholder may petition any court of competent jurisdiction at the expense
of the Corporation in the case of the Trustee, for the appointment of a
successor Trustee. 

- 98 - 

(c)     Upon delivery by the successor
Trustee of a written acceptance of its appointment to the retiring Trustee and
to the Corporation, (i) the retiring Trustee will transfer all property held by
it as Trustee to the successor Trustee, (ii) the resignation or removal of the
retiring Trustee will become effective, and (iii) the successor Trustee will
have all the rights, powers and duties of the Trustee under this Indenture. Upon
request of any successor Trustee, the Corporation will execute any and all
instruments for fully and vesting in and confirming to the successor Trustee all
such rights, powers and trusts. The Corporation will give notice of any
resignation and any removal of a Trustee and each appointment of a successor
Trustee to all holders, and include in the notice the name of the successor
Trustee and the address of its principal office. 

(d)     Notwithstanding replacement of a
Trustee pursuant to this Section, the Corporation’s obligations under Section
15.9 will continue for the benefit of the retiring Trustee. 

(e)     The Trustees agree to give the
notices provided for in, and otherwise comply with, Section 310(b) of the Trust
Indenture Act. 

	15.4 	
      Reports by Trustees to
  Holders

Within 60 days after each May 15, beginning with May 15, 2017,
the Trustees will mail to each holder, as provided in Section 313(c) of the
Trust Indenture Act, a brief report dated as of such May 15, if required by
Section 313(a) of the Trust Indenture Act. The Trustee shall also comply with
Section 313(b)(2) of the Trust Indenture Act. A copy of each report shall be
filed with each stock exchange upon which the Debentures are listed and with the
SEC as required by Section 313(d) of the Trust Indenture Act. The Corporation
will notify the Trustees when any Debentures are listed on any national
securities exchange and of any delisting thereof. 

	15.5 	
      Trustee May Deal in
  Debentures

The Trustees, in their individual or any other capacity, may
become the owners or pledgees of Debentures and may otherwise deal with the
Corporation or its affiliates with the same rights they would have if they were
not the Trustees. Any paying agent, registrar or conversion agent may do the
same with like rights. However, the Trustees are subject to Sections 310(b) and
311 of the Trust Indenture Act. For purposes of Section 311(b)(4) and (6) of the
Trust Indenture Act: 

(a)     “cash transaction” means any
transaction in which full payment for goods or securities sold is made within
seven days after delivery of the goods or securities in currency or in checks or
other orders drawn upon banks or bankers and payable upon demand; and 

(b)     “self-liquidating paper”
means any draft, bill of exchange, acceptance or obligation which is made,
drawn, negotiated or incurred for the purpose of financing the purchase,
processing, manufacturing, shipment, storage or sale of goods, wares or
merchandise and which is secured by documents evidencing title to,
possession of, or a lien upon, the goods, wares or merchandise or the
receivables or proceeds arising from the sale of the goods, wares or merchandise
previously constituting the security, provided the security is received by the
Trustees simultaneously with the creation of the creditor relationship arising
from the making, drawing, negotiating or incurring of the draft, bill of
exchange, acceptance or obligation.

- 99 - 

	15.6 	
      Investment of Monies Held by
  Trustees

Unless otherwise provided in this Indenture, any monies held by
the Trustees, which, under the trusts of this Indenture, may or ought to be
invested or which may be on deposit with the Trustees or which may be in the
hands of the Trustees, may be invested and reinvested in the name or under the
control of the Trustees in securities in which, under the laws of the Province
of Ontario or the State of New York, trustees are authorized to invest trust
monies, provided that such securities are expressed to mature within two years
or such shorter period selected to facilitate any payments expected to be made
under this Indenture, after their purchase by the Trustees, and unless and until
the Trustees shall have declared the principal of and interest on the Debentures
to be due and payable, the Trustees shall so invest such monies at the Written
Direction of the Corporation given in a reasonably timely manner. Pending the
investment of any monies as hereinbefore provided, such monies may be deposited
in the name of the Trustees in any chartered bank of Canada or the United
States, with the consent of the Corporation, or any other loan or trust company
authorized to accept deposits under the laws of Canada or any Province thereof
or the federal laws of the United States at the rate of interest, if any, then
current on similar deposits. 

Unless and until the Trustees shall have declared the principal
of and interest on the Debentures to be due and payable, the Trustees shall pay
over to the Corporation all interest received by the Trustees in respect of any
investments or deposits made pursuant to the provisions of this Section;
provided that the Trustees shall not be liable for any interest on funds held
uninvested by them. 

	15.7 	
      Trustee Not Required to Give
  Security

The Trustees shall not be required to give any bond or security
in respect of the execution of the trusts and powers of this Indenture or
otherwise in respect of the premises. 

	15.8 	
      Eligibility

This Indenture must always have a Trustee that satisfies the
requirements of Section 310(a) of the Trust Indenture Act and has a combined
capital and surplus of at least $25,000,000 as set forth in its most recent
published annual report of condition.

For so long as required by applicable Canadian law, there shall
be a Canadian Trustee under this Indenture. The Canadian Trustee represents and
warrants to the Corporation that it is a trust company organized under the laws
of Canada or a province thereof and is authorized under such laws and the laws
of each province of Canada to carry on trust business therein. If at any time
the Canadian Trustee shall cease to be eligible in accordance with this Section
15.9, any trustee which is a successor to or is appointed as a replacement of
the Canadian Trustee shall meet the qualifications set out in this Section 15.9.
Notwithstanding any other provision hereof, requirements of the Trust Indenture Act specified herein shall
be applicable to the Canadian Trustee only to the extent applicable by law. 

- 100 - 

	15.9 	
      Compensation and
Indemnity

(a)     The Corporation shall pay to the
Trustees from time to time compensation for their services hereunder as agreed
separately by the Corporation and the Trustees, and shall pay or reimburse the
Trustees upon their request for all reasonable expenses, disbursements and
advances incurred or made by the Trustees in the administration or execution of
their duties under this Indenture (including the reasonable and documented
compensation and disbursements of its Counsel and all other advisers and
assistants not regularly in its employ), both before any default hereunder and
thereafter until all duties of the Trustees under this Indenture shall be
finally and fully performed. The Trustees’ compensation shall not be limited by
any law on compensation of a trustee of an express trust. 

(b)     The Corporation hereby indemnifies
and saves harmless the Trustees and its directors, officers and employees from
and against any and all loss, damages, charges, expenses, claims, demands,
actions or liability whatsoever which may be brought against the Trustees or
which they may suffer or incur as a result of or arising out of the performance
of their duties and obligations hereunder save only in the event of the
negligence, wilful misconduct or fraud of the Trustees. This indemnity will
survive the termination or discharge of this Indenture and the resignation or
removal of the Trustees. The Trustees shall notify the Corporation promptly of
any claim for which it may seek indemnity. The Corporation shall defend the
claim and the Trustees shall co-operate in the defence. The Trustees may have
separate Counsel and the Corporation shall pay the reasonable fees and expenses
of such Counsel. The Corporation need not pay for any settlement made without
its consent, which consent must not be unreasonably withheld. This indemnity
shall survive the resignation or removal of the Trustees or the discharge of
this Indenture.

(c)     The Corporation need not reimburse
any expense or indemnify against any loss or liability incurred by the Trustees
through negligence, wilful misconduct or fraud. 

(d)     The Trustees shall have a lien
prior to the Debentures as to all property or funds held by them hereunder for
any amounts owning them or any predecessor Trustees pursuant to this Section
15.9, except with respect to funds held in trust for the benefit of the
Debentureholders. 

	15.10 	
      Acceptance of Trust

The Trustees hereby accepts the trusts in this Indenture
declared and provided for and agree to perform the same upon the terms and
conditions herein set forth and to hold all rights, privileges and benefits
conferred hereby and by law in trust for the various Persons who shall from time
to time be Debentureholders, subject to all the terms and conditions herein set
forth. 

	15.11 	
      Attorney-in-Fact

The Trustees hereby agree to act as the attorneys-in-fact for
the holders of the Debentures to the extent necessary or desirable for the
purposes of this Indenture and each holder by receiving and holding the
Debentures accepts and confirms the appointment of the Trustees as the
attorneys-in- fact of such holder to the extent necessary for the purposes
hereof and in accordance with and subject to the provisions hereof. 

- 101 - 

To the extent necessary and for greater certainty (but without
in any way detracting from custom and usage applicable with regards to the
relationship between the Corporation, the Trustees and the holders of Debentures
hereunder) and subject to any applicable law of public order, the Trustees and
the Corporation hereby agree with regards to the Trustees so acting as the
attorney-in-fact of the holders of Debentures hereunder and each holder of
Debentures by receiving and holding same agrees with the Corporation and the
Trustees that, notwithstanding any other provision hereof and except as may be
otherwise set forth in any request, demand, authorization, direction, notice,
consent, waiver or other action given or taken by holders of Debentures pursuant
to this Indenture, relating thereto, no holder of Debentures shall be liable to
third parties for acts performed by the Trustee (or any other Person appointed
by the Trustees to perform all or any of their rights, powers, trusts or duties
hereunder) during the exercise of their rights, powers and trusts and the
performance of their duties under this Indenture or for injury caused to such
parties by the fault of the Trustees (or any such Person), or for contracts
entered into in favour of such parties, during such performance. For great
certainty, none of the provisions contained in this Indenture shall require the
Trustees to expend or risk their own funds or otherwise incur financial
liability in the performance of any of their duties or in the exercise of any of
their rights or powers unless indemnified. 

	15.12 	
      Privacy Laws

The parties acknowledge that federal and/or provincial
legislation that addresses the protection of individuals’ personal information
(collectively, “Privacy Laws”) applies to certain obligations and
activities under this Indenture. Notwithstanding any other provision of this
Indenture, neither party shall take or direct any action that would contravene,
or cause the other to contravene, applicable Privacy Laws. The Corporation
shall, prior to transferring or causing to be transferred personal information
to the Trustees, obtain and retain required consents of the relevant individuals
to the collection, use and disclosure of their personal information, or shall
have determined that such consents either have previously been given upon which
the parties can rely or are not required under the Privacy Laws. The Trustees
shall use commercially reasonable efforts to ensure that their services
hereunder comply with Privacy Laws. Specifically, the Trustees agree: (a) to
have a designated chief privacy officer; (b) to maintain policies and procedures
to protect personal information and to receive and respond to any privacy
complaint or inquiry; (c) to use personal information solely for the purposes of
providing its services under or ancillary to this Indenture and to comply with
applicable laws and not to use it for any other purpose except with the consent
of or direction from the Corporation or the individual involved or as permitted
by Privacy Laws; (d) not to sell or otherwise improperly disclose personal
information to any third party; and (e) to employ administrative, physical and
technological safeguards to reasonably secure and protect personal information
against loss, theft, or unauthorized access, use or modification. 

	15.13 	
      Force Majeure

The Trustees shall not be personally liable, or held in breach
of this Indenture, if prevented, hindered, or delayed in the performance or
observance of any provision contained herein by reason of act of God, riots,
terrorism, acts of war, epidemics, governmental action or judicial order,
earthquakes, or any other similar causes (including, but not limited to,
mechanical, electronic or communication interruptions, disruptions or
failures). Performance times under this Indenture shall be extended for a period
of time equivalent to the time lost because of any delay that is excusable under
this Section. 

- 102 - 

	15.14 	
      Anti-Money
Laundering

The Trustees shall retain the right not to act and shall not be
liable for refusing to act if, due to a lack of information or for any other
reason whatsoever, the Trustees, in their sole judgment and acting reasonably,
determines that such act might cause them to be in non-compliance with any
applicable anti-money laundering or anti-terrorist legislation, regulation or
guideline. Further, should the Trustees, in their sole judgment and acting
reasonably, determine at any time that they acting under this Indenture has
resulted in their being in non-compliance with any applicable anti-money
laundering or anti-terrorist legislation, regulation or guideline, then they
shall have the right to resign on 10 days’ prior written notice sent to the
Corporation or any shorter period of time as agreed to by the Corporation
provided that: 

	 	(a) 	
      a Trustee’s written notice shall describe the
      circumstances of such non- compliance; and

	 	 	 
	 	(b) 	
      if such circumstances are rectified to such Trustee’s
      satisfaction within such 10-day period, then such resignation shall not be
      effective.

	15.15 	
      Conditions Precedent to Trustees’ Obligations to
      Act Hereunder

The Trustees shall not be bound to give any notice or to do or
take any act, action or proceeding in virtue of the powers conferred on them
hereby unless and until they shall be required so to do under the terms hereof;
nor, subject to any default or Event of Default which may be known by a Trustee,
shall the Trustees be required to take notice of any default or Event of Default
hereunder, unless and until notified in writing of such default or Event of
Default, which notice shall distinctly specify the default or Event of Default
desired to be brought to the attention of a Trustee, and in the absence of such
notice, the Trustees may for all purposes of this Indenture conclusively assume
that the Corporation is not in default hereunder and that no default has been
made with respect to the payment of principal of, premium, if any, Additional
Amount, if any, or interest on Debentures or in the observance or performance of
any of the covenants, agreements or conditions contained herein. Any such notice
shall in no way limit any discretion herein given to the Trustees to determine
whether or not the Trustees shall take action with respect to any default or
Event of Default. 

The Corporation shall provide to the Trustees an incumbency
certificate setting out the names and sample signatures of Persons authorized to
give instructions to the Trustees hereunder. The Trustees shall be entitled to
rely on such certificate until a revised certificate is provided to them
hereunder. The Trustees shall be entitled to refuse to act upon any instructions
given by a party which are signed by any Person other than a Person described in
the incumbency certificate provided to them pursuant to this Section. 

The Trustees shall be entitled to treat a facsimile, pdf or
e-mail communication or communication by other similar electronic means in a
form satisfactory to the Trustees (“Electronic Methods”) from a Person
purporting to be (and whom such Trustees, acting reasonably, believes in good
faith to be) the authorized representative of the Corporation, as sufficient
instructions and authority of the Corporation for the Trustees to act and shall
have no duty to verify or confirm that Person is so authorized. The Trustees
shall have no liability for any losses, liabilities, costs or expenses incurred
by them as a result of such reliance upon or compliance with such instructions
or directions. The Corporation agrees: (i) to assume all risks arising out of
the use of such electronic methods to submit instructions and directions to the
Trustees, including without limitation the risk of the Trustees acting on
unauthorized instructions, and the risk of interception and misuse by third
parties; (ii) that it is fully informed of the protections and risks associated
with the various methods of transmitting instructions to the Trustees and that
there may be more secure methods of transmitting instructions than the method(s)
selected by the Corporation; and (iii) that the security procedures (if any) to
be followed in connection with its transmission of instructions provide to it a
commercially reasonable degree of protection in light of its particular needs
and circumstances. 

- 103 - 

ARTICLE 16 
SUPPLEMENTAL INDENTURES 

	16.1 	
      Supplemental
Indentures

From time to time the Trustees and, when authorized by a
resolution of the Board of Directors of Corporation, the Corporation, may, and
they shall when required by this Indenture, execute, acknowledge and deliver by
their proper officers deeds or indentures supplemental hereto which thereafter
shall form part hereof, for any one or more of the following purposes: 

	 	(a) 	
      providing for the issuance of Additional Debentures under
      this Indenture;

	 	 	 
	 	(b) 	
      adding to the covenants of the Corporation herein
      contained for the protection of the Debentureholders, or of the Debentures
      of any series, or providing for events of default, in addition to those
      herein specified;

	 	 	 
	 	(c) 	
      making such provisions not inconsistent with this
      Indenture as may be necessary or desirable with respect to matters or
      questions arising hereunder, including the making of any modifications in
      the form of the Debentures which do not affect the substance thereof and
      which in the opinion of the Trustees relying on an opinion of Counsel will
      not be prejudicial to the interests of the Debentureholders;

	 	 	 
	 	(d) 	
      evidencing the succession, or successive successions, of
      others to the Corporation and the covenants of and obligations assumed by
      any such successor in accordance with the provisions of this
    Indenture;

	 	 	 
	 	(e) 	
      appointing a successor Depository in the event that (i)
      the Depository has notified the Trustees, or the Corporation has notified
      the Trustees, that it is unwilling or unable to continue as Depository or
      (ii) the Depository ceases to be eligible to be a Depository under Section
      2.7(b);

	 	 	 
	 	(f) 	
      giving effect to any Extraordinary Resolution or any
      amendment, supplement or waiver requiring the consent of each holder
      approved as provided in Article 13;

- 104 - 

	 	(g) 	
      to comply with any requirements of the SEC in connection
      with the qualification of this Indenture under the Trust Indenture Act;
      and

	 	 	 
	 	(h) 	
      for any other purpose not inconsistent with the terms of
      this Indenture.

Unless the supplemental indenture requires the consent or
concurrence of Debentureholders or the holders of a particular series of
Debentures, as the case may be, by Extraordinary Resolution, the consent or
concurrence of Debentureholders or the holders of a particular series of
Debentures, as the case may be, shall not be required in connection with the
execution, acknowledgement or delivery of a supplemental indenture. The
Corporation and the Trustees may amend any of the provisions of this Indenture
related to matters of United States law or the issuance of Debentures into the
United States in order to ensure that such issuances can be made in accordance
with applicable law in the United States without the consent or approval of the
Debentureholders. Further, the Corporation and the Trustees may without the
consent or concurrence of the Debentureholders or the holders of a particular
series of Debentures, as the case may be, by supplemental indenture or
otherwise, make any changes or corrections in this Indenture which it shall have
been advised by Counsel are required for the purpose of curing or correcting any
ambiguity or defective or inconsistent provisions or clerical omissions or
mistakes or manifest errors contained herein or in any indenture supplemental
hereto or any Written Direction of the Corporation provided for the issue of
Debentures, providing that in the opinion of the Trustees (relying upon an
opinion of Counsel) the rights of the Debentureholders are in no way prejudiced
thereby. 

It is not necessary for holders to approve the particular form
of any proposed amendment, supplement or waiver, but is sufficient if their
consent approves the substance thereof.

Prior to executing any supplement or amendment hereto, the
Trustees shall receive an opinion of Counsel stating that such supplement or
amendment is authorized or permitted by this Indenture. 

After an amendment, supplement or waiver becomes effective, the
Corporation will send to the holders affected thereby a notice briefly
describing the amendment, supplement or waiver. The Corporation will send
supplemental indentures to holders upon request. Any failure of the Corporation
to send such notice, or any defect therein, will not, however, in any way impair
or affect the validity of any such supplemental indenture or waiver. 

	16.2 	
      Conformity with Trust Indenture
  Act

Every supplemental indenture executed pursuant to this Article
shall conform to the requirements of the Trust Indenture Act. 

ARTICLE 17 
EXECUTION 

	17.1 	
      Execution

This Indenture may be simultaneously executed in several
counterparts, each of which when so executed shall be deemed to be an original
and such counterparts together shall constitute one and the same instrument.

- 105 - 

IN WITNESS whereof the parties hereto have executed
these presents by the hands of their proper officers in that behalf. 

	 	ENERGY FUELS INC.
  
	 	  	  
	 	  	  
	 	By: 	 
    
	 		Name:  Daniel G. Zang 
	 		Title:  Chief Financial Officer
  

	 	BNY TRUST COMPANY OF CANADA,
      as 
	 	Canadian Trustee 
	 	 	  
	 	 	  
	 	By:  	
	 	 	Name: 
	 	 	Title: 

	 	THE BANK OF NEW YORK MELLON,
      as 
	 	U.S. Trustee 
	 	 	  
	 	 	  
	 	By:  	
	 	 	Name: 
	 	 	Title: 

SCHEDULE “A” 

TO THE AMENDED AND RESTATED 
CONVERTIBLE DEBENTURE
INDENTURE AMONG 

ENERGY FUELS INC., 
BNY TRUST COMPANY OF CANADA 

AND 

THE BANK OF NEW YORK MELLON 
FORM OF DEBENTURE 

 

 

 

SCHEDULE “A” 

FORM OF DEBENTURE 

[GLOBAL DEBENTURE LEGEND] 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF CDS CLEARING AND DEPOSITORY SERVICES INC. (“CDS”) TO ENERGY
FUELS INC. (THE “ISSUER”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME
OF CDS & CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF CDS (AND ANY PAYMENT IS MADE TO CDS & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED HOLDER HEREOF, CDS & CO., HAS A PROPERTY
INTEREST IN THE SECURITIES REPRESENTED BY THIS CERTIFICATE HEREIN AND IT IS A
VIOLATION OF ITS RIGHTS FOR ANOTHER PERSON TO HOLD, TRANSFER OR DEAL WITH THIS
CERTIFICATE. 

TRANSFERS OF THIS DEBENTURE SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CDS & CO. OR TO A SUCCESSOR THEREOF
OR SUCH SUCCESSOR’S NOMINEE. 

CUSIP [•] 
ISIN [•]

$[•] 

No. [•] 

[NAME OF REGISTERED HOLDER] 

ENERGY FUELS INC. 
(A corporation continued under
the laws of Ontario) 

FLOATING RATE CONVERTIBLE UNSECURED SUBORDINATED
DEBENTURES 

ENERGY FUELS INC. (the “Corporation” or the
“Issuer”) for value received hereby acknowledges itself indebted and,
subject to the provisions of the Amended and Restated Convertible Debenture
Indenture (the “Indenture”) dated as of August 4, 2016 among the
Corporation, BNY Trust Company of Canada (the “Canadian Trustee”)
and The Bank of New York Mellon (the “U.S. Trustee”), promises to pay to
the registered holder hereof on December 31, 2020 or on such earlier date as the
principal amount hereof may become due in accordance with the provisions of the
Indenture (any such date, the “Maturity Date”) the principal sum of
[• ($•)] Dollars in lawful money of Canada on
presentation and surrender of this Initial Debenture at the principal office of
the Trustees in accordance with the terms of the Indenture and, subject as
hereinafter provided, to pay interest on the principal amount hereof from the
date hereof, or from the last Interest Payment Date to which interest shall have
been paid or made available for payment hereon, whichever is later, at the
Applicable Rate (based on a 365 day year and the actual number of days elapsed
in that period), in like money, in arrears in semi-annual installments on June
30 and December 31 in each year commencing on December 31, 2012 and the last
payment (representing interest payable from the last Interest Payment Date to,
but excluding, the Maturity Date) to fall due on the Maturity Date and, should
the Corporation at any time make default in the payment of any principal,
premium, if any, or interest, to pay interest on the amount in default at the
same rate, in like money and on the same dates. For certainty, the first
interest payment will include interest accrued from June 30, 2016 to, but
excluding December 31, 2016. For the purposes of disclosure under the
Interest Act (Canada), whenever interest is computed under this Initial Debenture on the basis of a year
(the “deemed year”) which contains fewer days than the actual number of
days in the calendar year of calculation, such rate of interest shall be
expressed as a yearly rate by multiplying such rate of interest by the actual
number of days in such calendar year of calculation and dividing it by the
number of days in the deemed year. 

 A-1 

This Initial Debenture is one of the Floating-Rate Convertible
Unsecured Subordinated Debentures (referred to herein as the “Initial
Debentures”) of the Corporation issued or issuable in one or more series
under the provisions of the Indenture. The Initial Debentures authorized for
issue immediately are limited to an aggregate principal amount of $22,000,000 in
lawful money of Canada. Reference is hereby expressly made to the Indenture for
a description of the terms and conditions upon which the Initial Debentures are
or are to be issued and held and the rights and remedies of the holders of the
Initial Debentures and of the Corporation and of the Trustees, all to the same
effect as if the provisions of the Indenture were herein set forth to all of
which provisions the holder of this Initial Debenture by acceptance hereof
assents. 

The Initial Debentures are issuable only in denominations of
$1,000 and integral multiples thereof. Upon compliance with the provisions of
the Indenture, Debentures of any denomination may be exchanged for an equal
aggregate principal amount of Debentures in any other authorized denomination or
denominations. 

Any part, being $1,000 or an integral multiple thereof, of the
principal of this Initial Debenture, provided that the principal amount of this
Initial Debenture is in a denomination in excess of $1,000, is convertible, at
the option of the holder hereof, upon surrender of this Initial Debenture at the
principal office of the Trustees, at any time prior to the close of business on
the Business Day immediately preceding the Maturity Date or, if this Initial
Debenture is called for redemption on or prior to such date, then, to the extent
so called for redemption, up to but not after the close of business on the fifth
Business Day immediately preceding the date specified for redemption of this
Initial Debenture, into Common Shares (without adjustment for interest accrued
hereon or for dividends or distributions on Common Shares issuable upon
conversion) at a conversion price of $4.15 (the “Conversion Price”) per
Common Share, being a rate of approximately 240.96 Common Shares for each $1,000
principal amount of Initial Debentures, all subject to the terms and conditions
and in the manner set forth in the Indenture. No Initial Debentures may be
converted during the five Business Days preceding and including June 30 and
December 31 in each year, commencing December 31, 2016, as the registers of the
Canadian Trustee will be closed during such periods. The Indenture makes
provision for the adjustment of the Conversion Price in the events therein
specified. No fractional Common Shares will be issued on any conversion but in
lieu thereof, the Corporation will satisfy such fractional interest by a cash
payment equal to the Current Market Price of such fractional interest determined
in accordance with the Indenture. Holders converting Debentures shall receive
accrued and unpaid interest thereon from the period of the last Interest Payment
Date prior to the Date of Conversion to the date that is one Business Day prior
to the Date of Conversion. If a Debenture is surrendered for conversion on an
Interest Payment Date or during the five preceding Business Days, the Person or
Persons entitled to receive Common Shares in respect of the Debentures so
surrendered for conversion shall not become the holder or holders of record of
such Common Shares until the Business Day following such Interest Payment Date.

At any time prior to the Maturity Date of the Initial
Debentures, provided that the Current Market Price of the Common Shares of the
Corporation is at least 125% of the Conversion Price of the Initial Debentures,
the Initial Debentures are redeemable at the option of the Corporation in whole
or in part from time to time at a Redemption Price equal to 100% (expressed as a
percentage of their principal amount) plus accrued and unpaid interest and
otherwise on the terms and conditions described in the Indenture. In connection
with the redemption of the Initial Debentures pursuant to this paragraph, the
Corporation may, on notice as provided in the Indenture, at its option and
subject to any applicable regulatory approval, elect to satisfy its obligation
to pay all or any portion of the applicable Redemption Price by the issue of
that number of Common Shares obtained by dividing the applicable Redemption
Price by 95% of the volume weighted average trading price of the Common Shares on the
Toronto Stock Exchange or such other stock exchange on which the Initial
Debentures may be listed for the 20 consecutive trading days ending five trading
days before the Redemption Date. 

A-2 

In addition, at any time after June 30, 2019 and prior to the
Maturity Date of the Initial Debentures, the Initial Debentures are redeemable
at the option of the Corporation in whole or in part from time to time at a
Redemption Price equal to 101% (expressed as a percentage of their principal
amount) plus accrued and unpaid interest thereon up to (but excluding) the
Redemption Date. Notwithstanding anything in this Debenture or in the Indenture
to the contrary (including any provision of Section 4.6 of the Indenture), in
connection with the redemption of the Initial Debentures pursuant to this
paragraph, the Redemption Price shall be paid in cash. 

Upon the occurrence of a Change of Control of the Corporation,
the Corporation is required to make an offer to purchase all of the Initial
Debentures at a price equal to 100% of the principal amount of such Initial
Debentures plus accrued and unpaid interest (if any) up to, but excluding, the
date the Initial Debentures are so repurchased (the “Change of Control
Purchase Offer”). If 90% or more of the principal amount of all Debentures
outstanding on the date the Corporation provides notice of a Change of Control
to the Trustees have been tendered for purchase pursuant to the Change of
Control Purchase Offer, the Corporation has the right to redeem all the
remaining outstanding Initial Debentures on the same date and at the same price.

If an offer is made for the Initial Debentures which is a
take-over bid for the Initial Debentures within the meaning of applicable
Canadian securities laws and 90% or more of the principal amount of all the
Initial Debentures (other than Initial Debentures held at the date of the offer
by or on behalf of the Offeror, associates or affiliates of the Offeror or
anyone acting jointly or in concert with the Offeror) are taken up and paid for
by the Offeror, the Offeror will be entitled to acquire the Initial Debentures
of those holders who did not accept the offer on the same terms as the Offeror
acquired the first 90% of the principal amount of the Initial Debentures. 

The Corporation may, on notice as provided in the Indenture, at
its option and subject to any applicable regulatory or stock exchange approval,
elect to satisfy the obligation to repay all or any portion of the principal
amount of this Initial Debenture due on the Maturity Date by the issue of that
number of Freely Tradeable Common Shares obtained by dividing the principal
amount of this Initial Debenture (or that portion to be paid for in Common
Shares pursuant to the exercise by the Corporation of the Common Share Repayment
Right), by 95% of the volume weighted average trading price of the Common Shares
on the Toronto Stock Exchange or other stock exchange on which the Debentures
may be listed for the 20 consecutive trading days ending five trading days
before the Maturity Date, provided that all accrued and unpaid interest thereon
shall be payable to the holder in cash. 

Each holder of Initial Debentures shall have a right (the
“Put Right”) to require the Corporation to purchase up to 20% of the
Initial Debentures held by such holder on June 30, 2017 at a price equal to 100%
of the principal amount thereof plus accrued and unpaid interest (less any tax
required by law to be deducted) on such Initial Debentures up to, but excluding,
the Put Date and subject to the terms and conditions of the Indenture. 

The indebtedness evidenced by this Initial Debenture, and by
all other Initial Debentures now or hereafter certified and delivered under the
Indenture, is a direct unsecured obligation of the Corporation, and is
subordinated in right of payment, to the extent and in the manner provided in
the Indenture, to the prior payment in full of all Senior Indebtedness, whether
outstanding at the date of the Indenture or thereafter created, incurred,
assumed or guaranteed. 

The principal hereof may become or be declared due and payable
before the stated maturity in the events, in the manner, with the effect and at
the times provided in the Indenture. 

A-3 

Any payments made by or on behalf of the Corporation under or
with respect to the Debentures (including for greater certainty and without
limitation, the delivery of Common Shares or other property in connection with
the conversion or redemption of Debentures) will be made free and clear of and
without withholding or deduction for or on account of any Canadian Taxes, unless
the Corporation or any other Payor is required to withhold or deduct Canadian
Taxes by applicable law or by the interpretation or administration thereof by
the relevant governmental authority. If the Corporation is so required to
withhold or deduct any amount for or on account of Canadian Taxes from any
payment made under or with respect to the Debentures, the Corporation will cause
the Payor to make such withholding or deduction and will remit the full amount
withheld or deducted to the relevant governmental authority as and when required
by applicable law and the Corporation will pay such Additional Amounts as may be
necessary so that the net amount received by each Debentureholder that is a
non-resident of Canada ("Non-Resident Holder") after such withholding or
deduction will not be less than the amount such NonResident Holder would have
received if such Canadian Taxes had not been withheld or deducted, provided,
however, that no Additional Amounts will be payable with respect to any payment
to an Excluded Holder. 

The Indenture contains provisions making binding upon all
holders of Debentures outstanding thereunder (or in certain circumstances
specific series of Debentures) resolutions passed at meetings of such holders
held in accordance with such provisions and instruments signed by the holders of
a specified percentage of Debentures outstanding (or specific series), which
resolutions or instruments may have the effect of amending the terms of this
Initial Debenture or the Indenture. 

The Indenture contains provisions disclaiming any personal
liability on the part of holders of Common Shares and officers, directors and
employees of the Corporation in respect of any obligation or claim arising out
of the Indenture or this Debenture. 

This Initial Debenture may only be transferred, upon compliance
with the conditions prescribed in the Indenture, in one of the registers to be
kept at the principal office of the Trustees and in such other place or places
and/or by such other registrars (if any) as the Corporation with the approval of
the Trustees may designate. No transfer of this Initial Debenture shall be valid
unless made on the register by the registered holder hereof or his executors or
administrators or other legal representatives, or his or their attorney duly
appointed by an instrument in form and substance satisfactory to the Canadian
Trustee or other registrar, and upon compliance with such reasonable
requirements as the Canadian Trustee and/or other registrar may prescribe and
upon surrender of this Initial Debenture for cancellation. Thereupon a new
Initial Debenture or Initial Debentures in the same aggregate principal amount
shall be issued to the transferee in exchange hereof. 

This Initial Debenture shall not become obligatory for any
purpose until it shall have been certified by the Canadian Trustee under the
Indenture. 

To the extent that the terms and conditions stated in this
Debenture conflict with the terms and conditions of the Indenture, the latter
shall prevail. 

Capitalized words or expressions used in this Initial Debenture
shall, unless otherwise defined herein, have the meaning ascribed thereto in the
Indenture. 

A-4 

IN WITNESS WHEREOF ENERGY FUELS INC. has caused this
Debenture to be signed by its authorized representatives as of the __ day of
________
. 

	 	ENERGY FUELS INC. 
	 	 	 
	 	 	 
	 	By:  	

(FORM OF CANADIAN TRUSTEE’S CERTIFICATE) 

This Initial Debenture is one of the Floating-Rate Convertible
Unsecured Subordinated Debentures due December 31, 2020 referred to in the
Indenture within mentioned. 

BNY TRUST COMPANY OF CANADA 

	By: 	 	 
		(Authorized Officer)  	 

A-5 

[INSERT FORM OF REGISTRATION PANEL ONLY IF THIS IS A GLOBAL
DEBENTURE] 
(FORM OF REGISTRATION PANEL)

(No writing hereon except by Canadian Trustee or other
registrar) 

	Date of Registration 	In Whose Name Registered 	Signature of Canadian Trustee
      
or Other Registrar 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

A-6 

FORM OF ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto _____________________________, whose address and
social insurance number, if applicable, are set forth below, this Initial
Debenture (or $___________
principal amount hereof*) of ENERGY FUELS
INC. standing in the name(s) of the undersigned in the register maintained
by the Corporation with respect to such Initial Debenture and does hereby
irrevocably authorize and direct the Canadian Trustee to transfer such Initial
Debenture in such register, with full power of substitution in the premises.

	Dated:
      __________________________________________________________________________________________________________________________________________________________
	 
	Address of Transferee:
      ______________________________________________________________________________________________________________________________________________
	(Street Address, City, Province and Postal Code)
    
	 
	Social Insurance Number of Transferee, if applicable:
      _______________________________________________________________________________________________________________________

*If less than the full principal amount of the within
Initial Debenture is to be transferred, indicate in the space provided the
principal amount (which must be $1,000 or an integral multiple thereof, unless
you hold an Initial Debenture in a non-integral multiple of $1,000 by reason of
your having exercised your right to exchange upon the making of a Change of
Control Purchase Offer, in which case such Initial Debenture is transferable
only in its entirety) to be transferred. 

	1. 	
      The signature(s) to this assignment must correspond with
      the name(s) as written upon the face of this Initial Debenture in every
      particular without alteration or any change whatsoever. The signature(s)
      must be guaranteed by a Canadian chartered bank or trust company or by a
      member of an acceptable Medallion Guarantee Program. Notarized or
      witnessed signatures are not acceptable as guaranteed signatures. The
      Guarantor must affix a stamp bearing the actual words: “SIGNATURE
      GUARANTEED”.

	 	 
	2. 	
      The registered holder of this Initial Debenture is
      responsible for the payment of any documentary, stamp or other transfer
      taxes that may be payable in respect of the transfer of this
    Debenture.

	Signature of Guarantor: 	 	  
	 	 	 
	 	 	 
	Authorized Officer 	 	Signature of transferring registered holder
  
	  	 	  
	 	 	 
	Name of Institution 	 	  

A-7 

EXHIBIT “1” 

TO CDS GLOBAL DEBENTURE 

ENERGY FUELS INC. 

FLOATING-RATE CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES

DUE DECEMBER 31, 2020 

	Initial Principal Amount: $ [•] 	CUSIP [•] 
	  	ISIN CA [•]

Authorization: ____________________________

ADJUSTMENTS 

	Date 	Amount of 
Increase
    	Amount of 
Decrease
    	New Principal 
Amount
    	Authorization 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

A-8 

SCHEDULE “B” 

TO THE CONVERTIBLE DEBENTURE INDENTURE BETWEEN 

ENERGY FUELS INC., 
BNY TRUST COMPANY OF CANADA 

AND 

THE BANK OF NEW YORK MELLON 
FORM OF REDEMPTION NOTICE

 

 

 

SCHEDULE “B” 

FORM OF REDEMPTION NOTICE 

ENERGY FUELS INC. 

FLOATING-RATE CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES

REDEMPTION NOTICE 

	To: 	Holders of Floating-Rate Convertible Unsecured
      Subordinated Debentures (the “Debentures”) of Energy Fuels Inc.
      (the “Corporation”) 
	  	  
	Note: 	All capitalized terms used herein have the
      meaning ascribed thereto in the Indenture mentioned below, unless
      otherwise indicated. 

Notice is hereby given pursuant to Section 4.3 of the Amended
and Restated Convertible Debenture Indenture (the “Indenture”) dated as
of August 4, 2016 among the Corporation, BNY Trust Company of Canada (the
“Canadian Trustee”) and The Bank of New York Mellon (the “U.S.
Trustee”), that the aggregate principal amount of $[•]
of the $[•] of Debentures outstanding will be redeemed as
of [•] (the “Redemption Date”), pursuant to [Section
2.5(d) of the Indenture ] [Section 2.5(e) of the Indenture], upon payment of a
redemption amount of $[•] for each $1,000 principal amount
of Debentures, being equal to the aggregate of (i) $[•]
(the “Redemption Price”), and (ii) all accrued and unpaid interest hereon
to but excluding the Redemption Date (collectively, the “Total Redemption
Price”). 

The Total Redemption Price will be payable upon presentation
and surrender of the Debentures called for redemption at the following corporate
trust office: 

BNY Trust Company of Canada 
320
Bay Street, 11th Floor, Toronto, Ontario, M5H 4A6 
Attention:
Transaction Management Group 
Facsimile No.: 416-360-1711 

The interest upon the principal amount of Debentures called for
redemption shall cease to be payable from and after the Redemption Date, unless
payment of the Total Redemption Price shall not be made on presentation for
surrender of such Debentures at the above-mentioned principal office on or after
the Redemption Date or prior to the setting aside of the Total Redemption Price
pursuant to the Indenture. 

[Pursuant to Section 4.6 of the Indenture, the Corporation
hereby irrevocably elects to satisfy its obligation to pay
$[•] of the Redemption Price payable to holders of
Debentures in accordance with this notice by issuing and delivering to the
holders that number of Freely Tradeable Common Shares obtained by dividing the
Redemption Price by 95% of the Current Market Price of the Common Shares.] 

No fractional Common Shares shall be delivered upon the
exercise by the Corporation of the above mentioned redemption right but, in lieu
thereof, the Corporation shall pay the cash equivalent thereof determined on the
basis of the Current Market Price of Common Shares on the Redemption Date,
provided, however, that the Corporation shall not be required to make any
payment of less than $5.00. 

In this connection, upon presentation and surrender of the
Debentures for payment on the Redemption Date, the Corporation shall, on the
Redemption Date, make the delivery to the Canadian Trustee, at the
above-mentioned corporate trust office, for delivery to and on account of the
holders, of certificates representing the Freely Tradeable Common Shares to
which holders are entitled together with the cash equivalent in lieu of
fractional Common Shares, cash for all accrued and unpaid interest up to, but
excluding, the Redemption Date, and, if only a portion of the
Debentures are to be redeemed by issuing Freely Tradeable Common Shares, cash
representing the balance of the Redemption Price.] 

B-1 

DATED: ________________

ENERGY FUELS INC.

__________________________________________
(Authorized
Director or Officer of ENERGY FUELS INC.) 

B-2 

SCHEDULE “C” 

TO THE CONVERTIBLE DEBENTURE INDENTURE BETWEEN 

ENERGY FUELS INC., 
BNY TRUST COMPANY OF CANADA 

AND 

THE BANK OF NEW YORK MELLON 
FORM OF MATURITY NOTICE

 

 

 

SCHEDULE “C” 

FORM OF MATURITY NOTICE 

ENERGY FUELS INC. 

FLOATING-RATE CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES

MATURITY NOTICE 

	To: 	Holders of Floating-Rate Convertible Unsecured
      Subordinated Debentures (the “Debentures”) of Energy Fuels Inc.
      (the “Corporation”) 
	  	  
	Note: 	All capitalized terms used herein have the
      meaning ascribed thereto in the Indenture mentioned below, unless
      otherwise indicated. 

Notice is hereby given pursuant to Section 4.10(b) of the
Amended and Restated Convertible Debenture Indenture (the “Indenture”)
dated as of August 4, 2016 among the Corporation and BNY Trust Company of
Canada, as Canadian Trustee (the “Canadian Trustee”) and The Bank
of New York Mellon, as U.S. Trustee (the “U.S. Trustee”), that the
Debentures are due and payable as of December 31, 2020 (the “Maturity
Date”) and the Corporation elects to satisfy its obligation to repay to
holders of Debentures the principal amount of all of the Debentures outstanding
on the Maturity Date, together with all accrued and unpaid interest thereon, by
issuing and delivering to the holders that number of Freely Tradeable Common
Shares equal to the number obtained by dividing such principal amount of the
Debentures and accrued and unpaid interest thereon by 95% of the Current Market
Price of the Common Shares on the Maturity Date. 

No fractional Common Shares shall be delivered on exercise by
the Corporation of the above mentioned repayment right but, in lieu thereof, the
Corporation shall pay the cash equivalent thereof determined on the basis of the
Current Market Price of Common Shares on the Maturity Date, provided, however,
that the Corporation shall not be required to make any payment of less than
$5.00. 

In this connection, upon presentation and surrender of the
Debentures for payment on the Maturity Date, the Corporation shall, on the
Maturity Date, make delivery at the principal office of the Trustees, for
delivery to and on account of the holders, of certificates representing the
Freely Tradeable Common Shares to which holders are entitled together with the
cash equivalent in lieu of fractional Common Shares, and if only a portion of
the Debentures are to be repaid by issuing Freely Tradeable Common Shares, cash
representing the balance of the principal amount, premium (if any) and interest
due on the Maturity Date. 

DATED: ________________

ENERGY FUELS INC.

__________________________________________
(Authorized
Director or Officer of ENERGY FUELS INC.) 

C-1 

SCHEDULE “D” 

TO THE CONVERTIBLE DEBENTURE INDENTURE BETWEEN 

ENERGY FUELS INC., 
BNY TRUST COMPANY OF CANADA 

AND 

THE BANK OF NEW YORK MELLON 
FORM OF NOTICE OF CONVERSION

 

 

 

SCHEDULE “D” 
FORM OF NOTICE OF CONVERSION

CONVERSION NOTICE

	TO: 	ENERGY FUELS INC. 
	 	 
	AND TO: 	BNY TRUST COMPANY OF CANADA 
	 	 
	Note: 	All capitalized terms used herein have the
      meaning ascribed thereto in the Indenture mentioned below, unless
      otherwise indicated. 

The undersigned registered holder of Floating Rate Convertible
Unsecured Subordinated Debentures irrevocably elects to convert such Debentures
(or $[•] principal amount thereof*) in accordance with the
terms of the Indenture referred to in such Debentures and tenders herewith the
Debentures, and, if applicable, directs that the Common Shares of Energy Fuels
Inc. issuable upon a conversion be issued and delivered to the Person indicated
below. (If Common Shares are to be issued in the name of a Person other than the
holder, all requisite transfer taxes must be tendered by the undersigned). 

	Conversion Price:
      _________________________________________________________	 	 
	  	 	 
	Date:
      __________________________________________________________________	 	___________________________________________________________________ 
		 	(Signature of registered
  holder)  

*If less than the full principal amount of the Debentures,
indicate in the space provided the principal amount (which must be $1,000 or
integral multiples thereof). 

	NOTE: 	
      If Common Shares are to be issued in the name of a Person
      other than the holder, the signature must be guaranteed by a chartered
      bank, a trust company or by a member of an acceptable Medallion Guarantee
      Program. The Guarantor must affix a stamp bearing the actual words:
      “SIGNATURE GUARANTEED”. 

(Print name in which Common Shares are to be issued,

delivered and registered) 

	Name:
      ___________________________________________________________________	 
	  	 
	________________________________________________________________________  	 
	(Address) 	 
	 	 
	________________________________________________________________________  	 
	(City, Province and Postal Code) 	 
	 	 
	Name of guarantor:
      _________________________________________________________	 
	 	 
	Authorized signature:
      _______________________________________________________	 

D-1 

SCHEDULE “E” 

TO THE CONVERTIBLE DEBENTURE INDENTURE BETWEEN 

ENERGY FUELS INC., 
BNY TRUST COMPANY OF CANADA 

AND 

THE BANK OF NEW YORK MELLON 
FORM OF PUT RIGHT EXERCISE
NOTICE 

 

 

 

SCHEDULE “E” 
FORM OF PUT RIGHT EXERCISE NOTICE

PUT RIGHT EXERCISE NOTICE

	TO: 	ENERGY FUELS INC. 
	 	 
	AND TO: 	BNY TRUST COMPANY OF CANADA 
	 	 
	Note: 	All capitalized terms used herein have the
      meaning ascribed thereto in the Indenture mentioned below, unless
      otherwise indicated. 

The undersigned registered holder of $[•] aggregate principal
amount of Floating Rate Convertible Unsecured Subordinated Debentures, bearing
Certificate No. [•] of Energy Fuels Inc. (“Corporation”) irrevocably
elects to put $[•]* aggregate principal amount thereof to be purchased by the
Corporation on June 30, 2017 (the “Put Date”) in accordance with the
terms of the Indenture referred to in such Debentures, at a price of $1,000 for
each $1,000 principal amount of Debentures plus all accrued and unpaid interest
thereon (less any tax required by law to be deducted) to, but excluding, the Put
Date (collectively, the “Total Put Price”) and tenders herewith the
Debentures. 

*No more than 20% of the Initial Debentures held may be put to
the Corporation and the amount put must be $1,000 or an integral multiple
thereof. 

THE INTEREST UPON THE PRINCIPAL AMOUNT OF DEBENTURES PUT TO
THE CORPORATION SHALL CEASE TO BE PAYABLE FROM AND AFTER THE PUT DATE UNLESS
PAYMENT OF THE TOTAL PUT PRICE SHALL NOT BE MADE ON PRESENTATION FOR SURRENDER
OF SUCH INITIAL DEBENTURES AT THE ABOVE MENTIONED CORPORATE TRUST OFFICE ON OR
AFTER THE PUT DATE OR PRIOR TO THE SETTING ASIDE OF THE TOTAL PUT PRICE PURSUANT
TO THE INDENTURE. 

	Date:
      __________________________________________________________________	 	___________________________________________________________________
       
		 	(Signature of registered
  holder)  

*If less than the full principal amount of the Debentures,
indicate in the space provided the principal amount (which must be $1,000 or
integral multiples thereof). 

(Print name in which Common Shares are to be issued,

delivered and registered) 

	Name:
      ___________________________________________________________________	 
	  	 
	________________________________________________________________________  	 
	(Address) 	 
	 	 
	________________________________________________________________________  	 
	(City, Province and Postal Code) 	 
	 	 
	Name of guarantor:
      _________________________________________________________	 
	 	 
	Authorized signature:
      _______________________________________________________	 

E-1Energy Fuels Inc.: Exhibit 10.5 - Filed by newsfilecorp.com

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

THIS AGREEMENT is made effective October 1, 2015, as amended
and restated on August 4, 2016, 

BETWEEN: 

ENERGY FUELS INC., a company
incorporated under 
the laws of the Province of Ontario, Canada (“EFI”), 

- and - 

ENERGY FUELS RESOURCES (USA) INC.,

a company incorporated under the laws of the 
State of Delaware, in the
United States of America (“EFRI”), 

(EFI and EFRI are collectively referred
to herein as the “Company”) 

- and - 

STEPHEN P. ANTONY, of the City of
Lakewood, 
in the State of Colorado, in the United States of America, 

(the “Executive”) 

WHEREAS the Executive has been
employed by the Company pursuant to an Employment Agreement dated October 1,
2012 as President and Chief Executive Officer for a three year term commencing
October 1, 2012, and the parties have agreed that effective October 1, 2015 the
original October 1, 2015 version of this Employment Agreement replaced and
superseded the Employment Agreement dated October 1, 2012. In accepting the
terms and conditions of the October 1, 2015 version of this Employment Agreement
the Company and the Executive relinquished all rights under the Employment
Agreement dated October 1, 2012; 

AND WHEREAS, the Executive and
the Company desire to enter into this Amended and Restated Employment Agreement
to amend, restate and replace the original October 1, 2015 version of this
Employment Agreement, 

NOW THEREFORE THIS AGREEMENT
WITNESSETH that in consideration of the foregoing and the mutual covenants and
agreements set out below and other good and valuable consideration, the parties
hereby agree as follows: 

	1. 	
      EMPLOYMENT

1.01     Term. The Company
will employ the Executive for a fixed term of three (3) years commencing October
1, 2015 and ending on September 30, 2018. The Executive’s employment with the Company will automatically terminate on September 30,
2018, subject to any renewal pursuant to Section 3 below, and subject to earlier
termination of his employment pursuant to Section 4 or 5 below. It is understood
that the Executive will be appointed President and Chief Executive Officer of
EFI and EFRI during the term of this Agreement, but that his direct employment
relationship will be as an employee of EFRI. 

2

1.02     Position, Reporting
Relationship, and Responsibilities. The Company will employ the
Executive, and the Executive will serve the Company, in the position of
President and Chief Executive Officer. As President and Chief Executive Officer
the Executive will report to the Board of Directors of EFI (the “Board of
Directors”) and will discharge the responsibilities and exercise the authority
expected of a President and Chief Executive Officer of a public mining company,
and such other responsibilities and authority as may be reasonably assigned to
and vested in the Executive by the Board of Directors. The Executive will hold
an active seat on the Board of Directors as a voting director and will be
entitled to continue as a Director for so long as he remains President and Chief
Executive Officer of the Company. The Executive will serve as a Director with no
additional compensation, and upon his termination of employment for any reason,
the Executive will forthwith resign his position as a member of the Board of
Directors, unless otherwise requested by the Board of Directors and agreed to by
the Executive. 

1.03     Full and Faithful
Service. During the term of the Executive’s employment, the Executive
will serve the Company faithfully honestly, diligently and to the best of the
Executive’s ability. The Executive will, except in the case of illness or
accident, devote all of the Executive’s working time and attention to the
Executive’s responsibilities to the Company and will use the Executive’s best
efforts to promote the interests of the Company. 

1.04     Place of Work. The
Executive will discharge his responsibilities from the Company’s offices located
in Lakewood, Colorado or such other locations as may be mutually agreed by the
Executive and the Board of Directors. The Executive acknowledges that the
position of President and Chief Executive Officer will require him to travel
throughout Canada and the United States of America and to such international
locations as are required to raise and maintain the Company’s profile with
investors. 

	2. 	
      COMPENSATION

2.01     Base Salary. EFRI
will pay the Executive a gross base salary (“Base Salary”) (before statutorily
required deductions) of $390,000 per annum, which shall be paid in accordance
with EFRI’s standard payroll practice. The Compensation Committee of the Board
of Directors will review the Executive’s Base Salary annually, and the Board of
Directors may increase the Base Salary in its discretion having regard to the
remuneration paid to executives in comparable positions in the mining industry
peer group determined by the Board (the “Peer Group”) and increases (if any) in
the cost of living in Colorado. After any such change, the Executive’s new level
of Base Salary shall be the Executive’s Base Salary for purposes of this
Agreement until the effective date of any subsequent change. 

2.02     Annual Performance
Bonus. Within ninety (90) days after the commencement of each fiscal
year the Compensation Committee of the Board of Directors will establish
reasonable corporate and individual performance objectives for the fiscal
year, and a targeted payout formula for the achievement of performance
objectives The performance objectives and targeted payout formula established by
the Board of Directors for any fiscal year will not be considered a precedent
for any subsequent fiscal year, and the Board of Directors will have absolute
discretion to determine the performance objectives and targeted payout formula
for any given fiscal year, provided that the potential payout will be in the
range of 0% to 150% of Base Salary depending upon the Executive’s performance
against the performance objectives established by the Board of Directors. Within
ninety (90) days after the end of each fiscal year the Compensation Committee
will review the Executive’s performance for the fiscal year and consider the
extent to which the performance objectives have been achieved. The Executive’s
entitlement to any annual performance bonus will be assessed and determined by
the Board of Directors in its discretion acting reasonably after reviewing the
recommendations of the Compensation Committee. The Board of Directors will have
final discretion to determine the annual performance bonus, if any, to be paid
to the Executive for the fiscal year and the components of the payout which may
include a cash bonus, stock options, restricted stock units (“RSUs”), or other
forms of equity based compensation, or any combination thereof. The payout
components for any fiscal year will not be considered a precedent for any
subsequent fiscal year, and the Board of Directors will have final discretion to
determine the payout components in any given fiscal year. The Executive’s annual
performance bonus for the fiscal year, if any, will be awarded and paid within
ninety (90) days after the end of the fiscal year provided that the Executive
remains employed on the last day of the fiscal year for which the bonus is
awarded. 

3

2.03     Benefits. The
Executive will be entitled to participate in the benefit plans offered to the
Company’s employees including 401K Plan, and health and dental insurance. The
benefits will be provided in accordance with and subject to the terms and
conditions of the applicable plan, fund or arrangement relating to such benefits
in effect from time to time. The Executive will have the option during the Term
of this Agreement of purchasing private health and dental insurance in lieu of
participating in the Company’s group insurance plan, in which case the Company
will reimburse the Executive for 80% of the premiums for private coverage up to
a maximum of 80% of the premiums for group coverage provided that the Executive
requests such reimbursement and such reimbursement is made no later than the
last day of the calendar year following the calendar year in which the premium
expense was incurred. The Executive acknowledges that the Company may amend or
terminate the benefits from time to time in the Company’s discretion. The
Executive will apply for key man insurance coverage in the amount of $2,000,000
for the benefit of the Company the premiums for which will be paid for by the
Company.

2.04     Automobile. The
Company will provide the Executive with an automobile (obtained through either
company or individual lease or purchase) for his unrestricted use, and will pay
all reasonable maintenance and operating costs. The automobile will be suitable
for both highway travel and off-road travel to access Company properties.

2.05     Annual Medical. The
Company will reimburse the Executive for the cost of a comprehensive annual
medical examination for each year of this Agreement, provided that the Executive
requests such reimbursement and such reimbursement is made no later than the
last day of the calendar year following the calendar year in which the
examination expense was incurred. The Executive will promptly notify the Board of
Directors if the annual medical examination reveals any condition which may
interfere with the Executive’s ability to perform the essential requirements of
the position of President and Chief Executive Officer, and if requested by the
Board of Directors the Executive will provide the details of the condition and
the potential impact on his ability to perform the essential requirements of his
position to enable the Board of Directors to determine how best to accommodate
the Executive and protect the critical business interests of the Company.

4

2.06     Expenses. The
Company will pay or reimburse the Executive for all business travel, business
development, public relations, conference, entertainment, and other
out-of-pocket expenses of the Executive which are reasonably incurred or paid by
the Executive in the performance of the Executive’s responsibilities upon
presentation of expense statements and receipts or such other supporting
documentation as the Company may reasonably require and subject to the approval
of the Chairman of the Board of Directors in accordance with the Company Travel
& Expense Policy. 

2.07     Vacation. In
addition to any statutory holidays, the Executive will be entitled to take five
(5) weeks paid vacation in each calendar year. Vacation will be taken by the
Executive at such time as may be acceptable to the Board of Directors having
regard to the operations of the Company. Unless provided otherwise in the
Company’s vacation policy applicable to all salaried employees, if the Executive
does not take the full vacation to which the Executive is entitled in any
calendar year, the unused vacation will not be carried over to the next year. If
the Executive’s employment is terminated pursuant to Section 4 or 5, the
Executive will be entitled to receive payment of any outstanding vacation pay
accrued to the effective date of termination of the Executive’s employment. 

2.08     Renewal Bonus. The
Company will pay the Executive a special one-time renewal bonus in the amount of
$100,000 subject to statutory deductions, of which $50,000 will be payable in
cash upon execution of this Agreement and the remainder will be payable in RSUs,
based on the value weighted average price on the NYSE MKT for the five trading
days ending on October 1, 2015. The RSUs will vest as to 50% on January 28,
2016, 25% on January 28, 2017 and the remaining 25% on January 28, 2018, and
upon vesting will entitle the Executive to one common share of the Company for
each RSU without the payment of any additional consideration by the Executive.
Such shares shall bear such legends and shall be subject to such trading
restrictions as may be required by applicable law and stock exchange rules. The
Company will withhold and sell such number of shares issuable on the vesting of
RSUs as required to satisfy its tax withholding requirements. 

	3. 	
      RENEWAL

3.01     Offer to Renew. The
Company may offer to renew this Agreement for a successive fixed term commencing
on October 1, 2018. If the Company wishes to renew this Agreement, the Company
will provide the Executive with notice in writing by not later than July 1,
2018. Such notice will include the Company’s proposals for the length of the
successive fixed term and any changes in the terms and conditions of the
Executive’s employment. The Executive will either communicate his acceptance of
such offer, deliver a counter proposal, or notify the Company that he does not wish to renew this Agreement, within fifteen
(15) days after receipt of such offer. The Company will respond in writing to
any counter proposal the Executive may make within fifteen days (15) after
receipt of such counter proposal. The length of the successive fixed term and
any proposed changes in Base Salary, annual performance bonus, benefits or other
terms and conditions of employment must be agreed upon in writing.

5

3.02     Non-Renewal. In the
event that: 

	(a) 	
      The Company does not offer to renew this
  Agreement,

	 	 	 
	(b) 	
      The Company does offer to renew this Agreement,
    but:

	 	 	 
		(i) 	
      The Executive notifies the Company that he does not wish
      to renew this Agreement, or

	 	 	 
		(ii) 	
      The Executive delivers a counter proposal which is not
      accepted by the Company,

this Agreement will automatically expire and the Executive’s
employment will terminate at the end of the three (3) year fixed term on
September 30, 2018, without any further notice or payment of any kind either by
way of anticipated earnings or damages of any kind except for unpaid Base Salary
and vacation pay accrued to the end of the fixed term. All stock options
previously granted to the Executive that have neither vested nor expired as of
the end of the fixed term on September 30, 2018 will automatically vest and the
Executive will have ninety (90) days from the effective date of termination of
the Executive’s employment to exercise his stock options and thereafter the
Executive’s stock options will expire and the Executive will have no further
right to exercise his stock options. Any period of restriction and other
restrictions imposed on all RSUs shall lapse, and all RSUs shall be immediately
settled and payable, and all other securities awarded shall vest and/or
accelerate in accordance with Article 16 of the EFI Omnibus Equity Incentive
Plan or the comparable provisions of any other equity incentive plan under which
such securities may have been issued. 

	4. 	
      TERMINATION

4.01     Termination for Just
Cause. The Company may terminate the Executive’s employment at any time
for just cause, without notice or payment of any compensation either by way of
anticipated earnings or damages of any kind except for unpaid Base Salary and
accrued cash benefits up to and including the effective date of termination of
the Executive’s employment. The Executive will forfeit any entitlement he may
have to receive any payment of annual performance bonus which, but for the
termination of the Executive’s employment for just cause, would otherwise have
been paid to the Executive pursuant to Section 2.02 above. That payment shall be
made in one lump sum, less required tax withholding, within ten (10) working
days after the effective date of such termination. The Executive will have up to
the earlier of: (i) ninety (90) days from the effective date of termination of
the Executive’s employment; and (ii) the date on which the exercise period of
the particular stock option expires, to exercise only that portion of the stock
options previously granted to the Executive that have not been exercised, but
which have vested, and thereafter the Executive’s stock options will expire and
the Executive will have no further right to exercise the stock options. Any stock
options held by the Executive that are not yet vested at the termination date
immediately expire and are cancelled and forfeited to the Company on the
termination date. Any RSUs held by the Executive that have vested before the
termination date shall be paid (or the shares issuable thereunder issued) to the
Executive. Any RSUs held by the Executive that are not vested at the termination
date will be immediately cancelled and forfeited to the Company on the
termination date. The rights of the Executive upon termination in respect of any
other awards granted to the Executive under any of the Company’s equity
compensation plans shall be as set forth in such plans or in the award agreement
for any such awards, as applicable. “Just cause” will mean any one or more of
the following events: 

6

	(a) 	
      theft, fraud, dishonesty, misappropriation, or wilful
      misconduct by the Executive involving the property, business or affairs of
      the Company or the discharge of the Executive’s responsibilities or the
      exercise of his authority;

	 	 
	(b) 	
      the wilful failure by the Executive to properly discharge
      his responsibilities or to adhere to the policies of the Company after
      notice by the Company of the failure to do so and an opportunity for the
      Executive to correct the failure within thirty (30) days from the receipt
      of such notice;

	 	 
	(c) 	
      the Executive’s gross negligence in the discharge of his
      responsibilities or involving the property, business or affairs of the
      Company to the material detriment of the Company;

	 	 
	(d) 	
      the Executive’s conviction of a criminal or other
      statutory offence that constitutes a felony or which has a potential
      sentence of imprisonment greater than six (6) months or the Executive’s
      conviction of a criminal or other statutory offence involving, in the sole
      discretion of the Board of Directors, moral turpitude;

	 	 
	(e) 	
      the Executive’s breach of a fiduciary duty owed to the
      Company;

	 	 
	(f) 	
      any breach by the Executive of the covenants contained in
      Sections 6 and 7 below;

	 	 
	(g) 	
      the Executive’s refusal to follow the lawful written
      direction of the Board of Directors;

	 	 
	(h) 	
      any conduct of the Executive which, in the opinion of the
      Board of Directors, is materially detrimental or embarrassing to the
      Company;

	 	 
	(i) 	
      any other conduct by the Executive that would constitute
      “just cause” as that term is defined at law.

If the parties disagree as to whether the Company had Just
Cause to terminate the Executive’s employment, the dispute will be submitted to
binding arbitration pursuant to Section 9 below. 

4.02     Termination without Just
Cause. The Company may terminate the Executive’s employment at any time
without just cause by written notice to the Executive specifying the effective
date of termination. As of the effective date of termination, Executive’s
employment and position with the Company shall terminate, and in lieu of
any other severance benefit that would otherwise be payable to Executive: 

7

	(a) 	
      The Company will pay the Executive all accrued
      obligations (“Accrued Obligations”), including outstanding Base Salary,
      accrued vacation pay and any other cash benefits accrued up to and
      including the effective date of termination of the Executive’s employment,
      less required tax withholding, to be paid on the effective date of
      termination of employment, or within no more than five (5) working days
      thereafter, and will reimburse the Executive for all proper expenses
      incurred by the Executive in discharging his responsibilities to the
      Company prior to the effective date of termination of the Executive’s
      employment in accordance with Section 2.06 above.

	 	 	 
	(b) 	
      The Company will provide the Executive with a lump sum
      payment equal to:

	 	 	 
		(i) 	
      two and one-half (21⁄2) times the Executive’s Base Salary,
      plus

	 	 	 
		(ii) 	
      an amount equal to the greater
of:

	 	A. 	
      Two and one-half (21⁄2) times the highest of Executive’s
      last three years’ cash bonus; or

	 	 	 
	 	B. 	
      Fifteen percent (15%) of Executive’s Base Salary in
      effect at the time of such termination,

	 	(iii) 	
      less any amount of Succession Bonus paid to the Executive
      under Section 4.06(a) on or prior to the effective date of termination of
      employment,

	 	 	 
	 	(iv) 	
      less required tax withholding,

to be paid within thirty (30) working
days after the effective date of termination of employment. 

	(c) 	
      The Executive will have up to the earlier of: (i) ninety
      (90) days from the effective date of termination of the Executive’s
      employment; and (ii) the date on which the exercise period of the
      particular stock option expires, to exercise only that portion of the
      stock options previously granted to the Executive that have not been
      exercised, but which have vested, and thereafter the Executive’s stock
      options will expire and the Executive will have no further right to
      exercise the stock options. Any stock options held by the Executive that
      are not yet vested at the termination date immediately expire and are
      cancelled and forfeited to the Company on the termination date. Any RSUs
      held by the Executive that have vested before the termination date shall
      be paid (or the shares issuable thereunder issued) to the Executive. Any
      RSUs held by the Executive that are not vested at the termination date
      will be immediately cancelled and forfeited to the Company on the
      termination date. The rights of the Executive upon termination in respect
      of any other awards granted to the Executive under any of the Company’s
      equity compensation plans shall be as set forth in such plans or in the
      award agreement for any such awards, as
applicable.

8

	(d) 	
      The Company will transfer ownership of the automobile if
      it is owned by the Company to the Executive at no cost to the Executive
      except for any taxable benefit associated with the transfer, or if the
      automobile is leased by the Company for the Executive’s sole use the
      Company will exercise the option to buy-out the lease and will transfer
      ownership of the automobile to the Executive at no cost to the Executive
      except for any taxable benefit associated with the transfer. If the
      Executive personally leases or owns the automobile, the Company will
      exercise the option to buy-out the Executive’s lease and/or pay off the
      balance due to the lender from the Executive so that the Executive obtains
      100% ownership of the automobile. In any case the Executive will be
      responsible for any taxable benefit associated with the transfer of
      ownership of the automobile to the Executive, which the Company may deduct
      from the amounts payable to the Executive under paragraph 4.02 (b)
      above.

	 	 
	(e) 	
      Upon termination, the Company, and any and all companies
      who purchase, whether it be a purchase of the Company or the purchase of
      the Company’s assets, merge or consolidate with the Company, agree to
      reimburse the Executive the full cost of the COBRA continuation rate
      charged for employee and spouse coverage, through the EFRI Health and
      Welfare Plan on a monthly basis, for a period of 30 months beyond the
      Executive’s termination month. The Executive and his spouse may, at their
      choosing, enroll in the COBRA continuation plan through EFRI for the first
      eighteen months following the Executive’s termination month or, if they
      choose, they may enroll in a separate plan of their choosing, by using the
      reimbursement to enroll in medical and prescription insurance of their
      choosing. Reimbursement at the rate described herein will continue for 30
      months beyond the Executive’s termination month, but beginning with the
      nineteenth month, the Executive and his spouse will need to obtain
      coverage from a different source than the COBRA continuation plan through
      EFRI. The reimbursement will be to the Executive and his spouse directly,
      will be non-taxable as a reimbursement of cost for coverage of the
      premiums charged by the insurance carriers for the COBRA continuation
      coverage for the current month of reimbursement. The reimbursed cost of
      COBRA coverage will be indexed annually, and will match the rate charged
      for any month of coverage available by the insurance carrier for Medical,
      Dental, and Optical coverage through EFRI for employee and spouse
      coverage. Both the Executive and his spouse, will have the option of
      purchasing a medical plan separate from the plan offered by
  EFRI.

The foregoing amounts and benefits represent the Company’s
maximum obligations, and other than as set out in this Section 4.02, the
Executive will not be entitled to any further compensation, rights or benefits
in connection with his employment. The payments contemplated in this Section
4.02(a) and (b) (the “Severance Payment”) will be paid by the Company and the
Company will provide the severance compensation contemplated in Sections
4.02(c), (d) and (e) in full satisfaction of any and all entitlement that the
Executive may have to notice of termination or payment in lieu of such notice,
severance pay, and any other payment to which the Executive may otherwise be
entitled pursuant to applicable law. With respect to any amount that becomes
payable to the Executive under this Agreement upon termination of Executive’s
employment with the Company for any reason (including under Sections 4.03, 4.05,
4.06 and 5.01) the provisions of this paragraph will apply,
notwithstanding any other provision of this Agreement to the contrary. To the
extent required under Section 409A of the Internal Revenue Code, (i) such amount
shall be payable only if such termination of Executive’s employment is a
“separation from service,” within the meaning of Code Section 409A, with the
Company and all persons and entities with which the Company would be considered
a single employer under Code Section 414(b) or (c), and (ii) if the Company
determines in good faith that Executive is a “specified employee” within the
meaning of Code Section 409A at the time of Executive’s separation from service,
then (A) any amount that becomes payable to Executive upon such separation from
service and that otherwise would be payable prior to the date that is six months
and one day after the date of Executive’s separation from service (the
“Alternate Payment Date”) shall be payable in a single payment on
the Alternate Payment Date (or, if earlier, within 30 days following the death
of Executive during the period from Executive’s separation from service through
the Alternate Payment Date), with no interest accruing on such amounts from the
date of Executive’s separation from service through the date of payment of such
amount, and (B) any amount that becomes payable to Executive upon Executive’s
separation from service that otherwise would be payable on or after the
Alternate Payment Date shall be payable on the date otherwise specified for
payment in this Agreement. 

9

4.03     Disability. If the
Executive is unable, with or without reasonable accommodation, to perform with
reasonable diligence the ordinary functions and duties of the Executive on a
full-time basis in accordance with the terms of this Agreement by reason of
mental or physical impairment, for a continuous period of one hundred and eighty
(180) days, the Executive will be deemed to be “Disabled”, and the Company may
terminate the Executive’s employment. The providing of service to the Company
for up to two (2) three (3) day periods during the one hundred and eighty (180)
day period of disability will not affect the determination as to whether the
Executive is Disabled and will not restart the one hundred and eighty (180) day
period of disability. If any dispute arises between the parties as to whether
the Executive is Disabled, the Executive will submit to an examination by a
physician selected by the mutual agreement of the Company and the Executive, at
the Company’s expense. The decision of the physician will be certified in
writing to the Company, and will be sent by the Company to the Executive or the
Executive’s legally authorized representative, and will be conclusive for the
purposes of determining whether the Executive is Disabled. If the Executive
fails to submit to a medical examination within twenty (20) days after the
Company’s request, the Executive will be deemed to have voluntarily terminated
his employment. If the Company terminates the Executive’s employment for
disability, the provisions of Sections 4.02(a), (b), (c), (d) and (e) above will
apply, and the Company will pay the Executive the amounts and take the actions
specified in those Sections. Any Base Salary payable to the Executive during the
one hundred and eighty (180) day period of disability will be reduced by the
amount of any disability benefits the Executive receives or is entitled to
receive as a result of any disability insurance policies for which the Company
has paid the premiums. The foregoing amounts represent the Company’s maximum
obligations, and other than as set out in this Section 4.03, the Executive will
not be entitled to any further compensation, rights or benefits in connection
with his employment. 

4.04     Voluntary
Resignation. The Executive may terminate the Executive’s employment with
the Company by providing ninety (90) days advance written notice of resignation.
The Company reserves the right to waive any resignation notice in excess of
ninety (90) days. The Company will pay to the Executive the amounts specified in
Section 4.02(a) above. The Executive will have up to the earlier of: (i) ninety
(90) days from the effective date of resignation; and (ii) the date on which the
exercise period of the particular stock option expires, to exercise only that
portion of the stock options previously granted to the Executive that have not
been exercised, but which have vested, and thereafter the Executive’s stock
options will expire and the Executive will have no further right to exercise the
stock options. Any stock options held by the Executive that are not yet vested
at the resignation date immediately expire and are cancelled and forfeited to
the Company on the resignation date. Any RSUs held by the Executive that have
vested before the resignation date shall be paid (or the shares issuable
thereunder issued) to the Executive. Any RSUs held by the Executive that are not
vested at the resignation date will be immediately cancelled and forfeited to
the Company on the resignation date. The rights of the Executive upon
resignation in respect of any other awards granted to the Executive under any of
the Company’s equity compensation plans shall be as set forth in such plans or
in the award agreement for any such awards, as applicable. The foregoing amounts
represent the Company’s maximum obligations, and other than as set out in this
Section 4.04, the Executive will not be entitled to any further compensation,
rights or benefits in connection with his employment. 

10

4.05     Death. The
Executive’s employment will automatically terminate upon the Executive’s death.
The provisions of Sections 4.02(a), (b), (d) and (e) above will apply, and the
Company will pay the Executive’s Estate the amounts and will take the actions
specified in those Sections on the basis that the date of the Executive’s death
shall be considered to be his termination date for purposes of those sections.
The legal personal representatives of the Executive will have up to the earlier
of: (i)12 months from the date of the Executive’s death; and (ii) the date on
which the exercise period of the particular stock option expires, to exercise
all stock options previously granted to the Executive that have not been
exercised, but which have vested as of the date of the Executive’s death and
thereafter the Executive’s stock options will expire and the Executive will have
no further right to exercise his stock options. All options which have not
vested as of the date of the Executive’s death will be forfeited. Any RSUs held
by the Executive that have vested before the termination date shall be paid (or
the shares issuable thereunder issued) to the Executive’s estate. Any RSUs held
by the Executive that are not vested at the termination date will be immediately
cancelled and forfeited to the Company on the termination date. The rights of
the Executive and the Executive’s estate in respect of any other awards granted
to the Executive under any of the Company’s equity compensation plans shall be
as set forth in such plans or in the award agreement for any such awards, as
applicable. The foregoing amounts represent the Company’s maximum obligations to
the Executive’s Estate, and other than as set out in this Section 4.05, the
Executive’s Estate will not be entitled to any further compensation, rights or
benefits in connection with the Executive’s employment. 

4.06     Succession Bonus/Retirement
after Successor has been Appointed.

	(a) 	
      The Executive will be entitled to a succession bonus (the
      “Succession Bonus”) in the total amount, subject to paragraph 4.06(d)
      below, of $1,350,000, less required tax withholdings, in connection with
      the appointment by the Board of a replacement President and Chief
      Executive Officer for the Company. The Succession Bonus will be paid as to
      one-third upon employment by the Company of a candidate suitable to
    the Board as Chief Operating Officer, as to two-thirds (less
      any portion of the Succession Bonus paid prior thereto) upon Board
      appointment of a candidate as President of the Company, and as to 100%
      (less any portions of the Succession Bonus paid prior thereto) upon Board
      appointment of a candidate as President and Chief Executive officer of the
      Company. As indicated above and below, any amounts paid as Succession
      Bonus will be deducted from amounts otherwise payable to the Executive for
      termination without cause, termination due to disability, upon the death
      of the Executive, or termination or resignation with good reason upon a
  change of control.

11

	(b) 	
      The Executive will retire from the Company upon Board
      appointment of the Executive’s successor as President and Chief Executive
      Officer of the Company.

	 	 
	(c) 	
      Upon retirement after Board appointment of the
      Executive’s successor as President and Chief Executive Officer, under the
      circumstances set out in paragraph (b),

	 	(i) 	
      The provisions of Sections 4.02(a), (d) and (e) above
      will apply, and the Company will pay the Executive the amounts and will
      take the actions specified in those Sections on the basis that the
      Executive’s retirement date shall be considered to be his termination date
      for purposes of those sections; and

	 	 	 
	 	(ii) 	
      all of the stock options previously granted to the
      Executive that have neither vested nor expired will automatically vest and
      become immediately exercisable, and will continue to be exercisable for a
      period of six months after the Executive’s date of retirement, any period
      of restriction and other restrictions imposed on all RSUs shall lapse, all
      RSUs (including without limitation any RSUs issued under paragraph 4.06(d)
      below) shall be immediately settled and payable (or the shares issuable
      thereunder issued), and all other securities awarded under the EFI Omnibus
      Equity Incentive Plan or any other equity incentive plan shall vest and/or
      accelerate effective as of the date of
retirement.

	(d) 	
      Notwithstanding paragraph 4.06(a) above, the Executive
      may, at his sole option, elect to receive all or any portion of the
      amounts payable under paragraph 4.06(a) above, in RSUs. The value of the
      RSUs to be issued (the “RSU Value”) shall equal the cash amount that would
      have been paid had the RSUs not been issued (the “Cash Value”) multiplied
      by 125%. The number of RSUs to be issued will be equal to the RSU Value
      divided by the greater of (a) the value weighted average price of the
      Company’s common shares on the NYSE MKT for the five trading days ending
      on the last trading day prior to the date the payment is due (the “Payment
      Date”); and (b) the closing price of the Company’s common shares on the
      NYSE MKT on the last trading day prior to the Payment Date. All RSUs
      issued shall vest on the next regular vesting day for outstanding RSUs
      previously granted to the Executive, and the shares issued to the
      Executive on such vesting shall be subject to the required tax
      withholdings at the time of share issuance. For purposes of determining
      any amounts paid as Succession Bonus to be deducted from amounts otherwise
      payable to the Executive for termination without cause, termination due to
      disability, upon the death of the Executive, or termination or resignation
      with good reason upon a change of control, the amount to be deducted in
      respect of any payments satisfied by the issuance of RSUs, shall be the Cash Value that
would have been paid had the RSUs not been issued. Notwithstanding any other
provision to the contrary in this Agreement, on any termination or deemed
termination of the Executive under this Agreement for any reason, all RSUs
issued under this paragraph 4.06(d) shall be immediately settled and payable (or
the shares issued thereunder issued). 

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4.07     Full Payment; No Mitigation
Obligation. The Company’s obligation to make the payments provided for
in this Section 4 and otherwise to perform its obligations under this Agreement
shall be subject to any set-off, counterclaim, recoupment, defense or other
claim, right or action which the Company may have against the Executive. 

4.08     Delivery of Release.
Within ten (10) working days after termination of Executive’s employment, and as
a condition for and in consideration of receipt of the payments set forth in
Sections 4.02, 4.03, 4.05, 4.06 or 5.01, the Company shall provide to Executive,
or Executive’s legal representative, a form of written release, which form shall
be satisfactory to the Company and generally consistent with the form of release
used by the Company prior to such termination of employment (the “Release”) and
which shall provide a full release of all claims against the Company and its
corporate affiliates, except where the Executive has been named as a defendant
in a legal action arising out of the performance of Executive’s responsibilities
in which case the Release will exempt any claims which the Executive may have
for indemnity by the Company with respect to any such legal action. As a
condition to and in consideration of the obligation of the Company to make the
payments provided for in such Sections, Executive, or Executive’s legal
representative, shall execute and deliver the Release to the Company within the
time periods provided for in said Release. 

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	5. 	
      CHANGE OF CONTROL

5.01     In the event of a Change of Control of the Company during
the term of this Agreement, or any renewal of this Agreement, if, within twelve
(12) months following the effective date of the Change of Control, the Company,
or its successor, (collectively the Company in this Section 5) terminates the
employment of the Executive, or the Executive resigns from employment with the
Company for Good Reason: 

(a)     The provisions of Section 4.02(a) above will apply, and the
Company will pay the Executive the amounts and take the actions specified
therein; and 

(b)     In addition, provided the Company has not terminated the
Executive’s employment for just cause, and the Executive signs a Release
contemplated by Section 4.08, the provisions of Sections 4.02(b), (d) and (e)
above will apply, and the Company will pay the Executive the amounts and take
the actions specified in those Sections.

5.02     The compensation set out in
this Section 5 represents the Company’s maximum obligations, and other than as
set out herein, the Executive will not be entitled to any other compensation,
rights or benefits in connection with Executive’s employment or the termination
of Executive’s employment.

5.03     For the purposes of this
Agreement, 

	 	(a) 	
      “Change of Control” will mean the happening of any of the
      following events:

	 	(i) 	
      any transaction at any time and by whatever means
      pursuant to which (A) EFI goes out of existence by any means, except for
      any corporate transaction or reorganization in which the proportionate
      voting power among holders of securities of the entity resulting from such
      corporate transaction or reorganization is substantially the same as the
      proportionate voting power of such holders of EFI voting securities
      immediately prior to such corporate transaction or reorganization or (B)
      any Person (as defined in the Securities Act (Ontario)) or any
      group of two or more Persons acting jointly or in concert (other than EFI,
      a wholly-owned Subsidiary of EFI, an Executive benefit plan of EFI or of
      any of its wholly-owned Subsidiaries (as defined in the Securities Act
      (Ontario)), including the trustee of any such plan acting as trustee)
      hereafter acquires the direct or indirect “beneficial ownership” (as
      defined by the Business Corporations Act (Ontario)) of, or acquires
      the right to exercise control or direction over, securities of EFI
      representing 50% or more of EFI’s then issued and outstanding securities
      in any manner whatsoever, including, without limitation, as a result of a
      take-over bid, an exchange of securities, an amalgamation of EFI with any
      other entity, an arrangement, a capital reorganization or any other
      business combination or reorganization;

14

	 	 	(ii) 	
      the sale, assignment or other transfer of all or
      substantially all of the assets of EFI in one or a series of transactions,
      whether or not related, to a Person or any group of two or more Persons
      acting jointly and in concert, other than a wholly-owned Subsidiary of
      EFI; 

	 	 	 	
      

	 	 	(iii) 	
      the dissolution or liquidation of EFI except in
      connection with the distribution of assets of EFI to one or more Persons
      which were wholly- owned Subsidiaries of EFI immediately prior to such
      event; 

	 	 	 	
      

	 	 	(iv) 	
      the occurrence of a transaction requiring approval of
      EFI’s shareholders whereby EFI is acquired through consolidation, merger,
      exchange of securities, purchase of assets, amalgamation, arrangement or
      otherwise by any other Person (other than a short form amalgamation or
      exchange of securities with a wholly-owned Subsidiary of EFI); 

	 	 	 	
      

	 	 	(v) 	
      an event set forth in (i), (ii), (iii) or (iv) has
      occurred with respect to EFRI, in which case the term “EFI” in those
      paragraphs will be read to mean “EFRI” and the phrase “wholly-owned
      Subsidiary(ies)” will be read to mean “ Affiliate(s) or wholly-owned
      Subsidiary(ies)”; or 

	 	 	 	
      

	 	 	(vi) 	
      the Board of Directors of EFI or EFRI passes a resolution
      to the effect that, an event set forth in (i), (ii), (iii), (iii) or (iv)
      above has occurred. 

	 	(b) 	“Good Reason” means, without the written
      agreement of the Executive, there is: 

(i)     a material reduction or diminution
in the level of responsibility, or office of the Executive, provided that before
any claim of material reduction or diminution of responsibility may be relied
upon by the Executive, the Executive must have provided written notice to the
Executive’s supervisor and EFI’s Board of Directors of the alleged material
reduction or diminution of responsibility and have given EFI at least thirty
(30) calendar days within which to cure the alleged material reduction or
diminution of responsibility; 

(ii)     a reduction in the compensation
level of the Executive, taken as a whole, of more than five (5) percent; 

(iii)     a proposed, forced relocation of
Executive to another geographic location greater than fifty (50) miles from the
Executive’s office location at the time a move is requested after a Change of
Control. 

5.04     Upon a Change of Control, in
accordance with Article 16 of the EFI Omnibus Equity Incentive Compensation Plan
all of the stock options previously granted to the Executive that have neither
vested nor expired will automatically vest and become immediately exercisable,
any period of restriction and other restrictions imposed on all RSUs shall
lapse, and all RSUs shall be immediately settled and payable (or the shares
issuable thereunder issued), and all other securities awarded shall vest and/or
accelerate in accordance with Article 16 of the EFI Omnibus Equity Incentive Plan or the comparable provisions of any other
equity incentive plan under which such securities may have been issued.

15

5.05     The Executive will have ninety
(90) days from the effective date of the termination of the Executive’s
employment to exercise any stock options which had vested as of the effective
date of termination and thereafter the Executive’s stock options will expire and
the Executive will have no further right to exercise the stock options. 

	6. 	
      CONFIDENTIALITY

6.01     Position of Trust and
Confidence. The Executive acknowledges that in the course of discharging
his responsibilities as President and Chief Executive Officer of the Company, he
will occupy a position of trust and confidence with respect to the affairs and
business of the Company and its customers and clients, and that he will have
access to and be entrusted with detailed confidential information concerning the
present and contemplated mining and exploration projects, prospects, and
opportunities of the Company. The Executive acknowledges that the disclosure of
any such confidential information to the competitors of the Company or to the
general public would be highly detrimental to the best interests of the Company.
The Executive further acknowledges and agrees that the right to maintain such
detailed confidential information constitutes a proprietary right which the
Company is entitled to protect. 

6.02     “Confidential
Information” means any information disclosed by or on behalf of the
Company to the Executive or developed by the Executive in the performance of his
responsibilities at any time before or after the execution of this Agreement,
and includes any information, documents, or other materials (including, without
limitation, any drawings, notes, data, reports, photographs, audio and/or video
recordings, samples and the like) relating to the business or affairs of the
Company or its respective customers, clients or suppliers that is confidential
or proprietary, whether or not such information: 

	(i) 	
      is reduced to writing;

	 	 
	(ii) 	
      was created or originated by an employee; or

	 	 
	(iii) 	
      is designated or marked as “Confidential” or
      “Proprietary” or some other designation or
marking.

The Confidential Information includes, but is not limited to,
the following categories of information relating to the Company: 

	(a) 	
      information concerning the present and contemplated
      mining, milling, processing and exploration projects, prospects and
      opportunities, including joint venture projects, of the Company;

	 	 
	(b) 	
      information concerning the application for permitting and
      eventual development or construction of the Company’s properties, the
      status of regulatory and environmental matters, the compliance status with
      respect to licenses, permits, laws and regulations, property and title
      matters and legal and litigation matters;

16

	(c) 	
      information of a technical nature such as ideas,
      discoveries, inventions, improvements, trade secrets, now-how,
      manufacturing processes, specifications, writings and other works of
      authorship;

	 	 
	(c) 	
      financial and business information such as the Company’s
      business and strategic plans, earnings, assets, debts, prices, pricing
      structure, volume of purchases or sales, production, revenue and expense
      projections, historical financial statements, financial projections and
      budgets, historical and projected sales, capital spending budgets and
      plans, or other financial data whether related to the Company’s business
      generally, or to particular products, services, geographic areas, or time
      periods;

	 	 
	(d) 	
      supply and service information such as goods and services
      suppliers’ names or addresses, terms of supply or service contracts of
      particular transactions, or related information about potential suppliers
      to the extent that such information is not generally known to the public,
      and to the extent that the combination of suppliers or use of a particular
      supplier, although generally known or available, yields advantages to the
      Company, the details of which are not generally known;

	 	 
	(e) 	
      marketing information, such as details about ongoing or
      proposed marketing programs or agreements by or on behalf of the Company,
      sales forecasts or results of marketing efforts or information about
      impending transactions;

	 	 
	(f) 	
      personnel information relating to employees, contractors,
      or agents, such as personal histories, compensation or other terms of
      employment or engagement, actual or proposed promotions, hirings,
      resignations, disciplinary actions, terminations or reasons therefor,
      training methods, performance, or other employee information;

	 	 
	(g) 	
      customer information, such as any compilation of past,
      existing or prospective customer’s names, addresses, backgrounds,
      requirements, records of purchases and prices, proposals or agreements
      between customers and the Company, status of customer accounts or credit,
      or related information about actual or prospective customers;

	 	 
	(h) 	
      computer software of any type or form and in any stage of
      actual or anticipated development, including but not limited to, programs
      and program modules, routines and subroutines, procedures, algorithms,
      design concepts, design specifications (design notes, annotations,
      documentation, float charts, coding sheets, and the like), source codes,
      object code and load modules, programming, program patches and system
      designs; and

	 	 
	(i) 	
      all information which becomes known to the Executive as a
      result of the Executive’s employment by the Company, which the Executive
      acting reasonably, believes or ought to believe is confidential or
      proprietary information from its nature and from the circumstances
      surrounding its disclosure to the Executive.

6.03     Non-Disclosure. The
Executive, both during his employment and at all times after the termination of
his employment irrespective of the time, manner or cause of termination, will:

17

	(a) 	
      retain in confidence all of the Confidential
      Information;

	 	 
	(b) 	
      refrain from disclosing to any person including, but not
      limited to, customers and suppliers of the Company, any of the
      Confidential Information except for the purpose of carrying out the
      Executive’s responsibilities with the Company, and

	 	 
	(c) 	
      refrain from directly or indirectly using or attempting
      to use such Confidential Information in any way, except for the purpose of
      carrying out the Executive’s responsibilities with the
  Company.

The Executive shall deliver promptly to the Company, at the
termination of the Executive’s employment, or at any other time at the Company’s
request, without retaining any copies, all documents and other material in the
Executive’s possession relating, directly or indirectly, to any confidential
Information. 

It is understood that should the Executive be subject to
subpoena or other legal process to seek the disclosure of such Confidential
Information, the Executive will advise the Company of such process and provide
the Company with the necessary information to seek to protect the Confidential
Information. 

	7. 	
      NON-COMPETITION AND
  NON-SOLICITATION

7.01     Non-Competition. The
Executive acknowledges that the Executive’s services are unique and
extraordinary. The Executive also acknowledges that the Executive’s position
will give the Executive access to confidential information of substantial
importance to the Company and its business. During the “Non-Competition Period”
(as defined below) the Executive will not, whether individually or in
partnership or jointly or in conjunction with any other person, perform services
for a competing business, or establish, control, own a beneficial interest in,
any business in North America that competes with the Company. The
Non-Competition Period will commence on October 1, 2015 and end twelve (12)
months after the effective date of the termination of the Executive’s employment
irrespective of the time, manner or cause of termination. 

7.02     Non-Solicitation.
The Executive agrees that during the Non-Competition Period, the Executive will
not, either individually or in partnership or jointly or in conjunction with any
other person, entity or organization, as principal, agent, consultant,
contractor, employer, employee or in any other manner, directly or indirectly:

	(a) 	
      solicit business from any customer, client or business
      relation of the Company, or prospective customer, client or business
      relation that the Company was actively soliciting, whether or not the
      Executive had direct contact with such customer, client or business
      relation, for the benefit or on behalf of any person, firm or corporation
      operating a business which competes with the Company, or attempt to direct
      any such customer, client or business relation away from the Company or to
      discontinue or alter any one or more of their relationships with the
      Company, or

18

	(b) 	
      hire or offer to hire or entice away or in any other
      manner persuade or attempt to persuade any officer, employee, consultant,
      independent contractor, agent, licensee, supplier, or business relation of
      the Company to discontinue or alter any one of their relationships with
      the Company.

	8. 	
      REMEDIES FOR BREACH OF RESTRICTIVE
  COVENANTS

8.01     The Executive acknowledges that in
connection with the Executive’s employment he will receive or will become
eligible to receive substantial benefits and compensation. The Executive
acknowledges that the Executive’s employment by the Company and all compensation
and benefits from such employment will be conferred by the Company upon the
Executive only because and on the condition of the Executive’s willingness to
commit the Executive’s best efforts and loyalty to the Company, including
protecting the Company’s confidential information and abiding by the
non-competition and non-solicitation covenants contained in this Agreement. The
Executive understands that his obligations set out in Sections 6 and 7 above
will not unduly restrict or curtail the Executive’s legitimate efforts to earn a
livelihood following any termination of his employment with the Company. The
Executive agrees that the restrictions contained in Section 6 above are
reasonable and valid and all defences to the strict enforcement of these
restrictions by the Company are waived by the Executive. The Executive further
acknowledges that a breach or threatened breach by the Executive of any of the
provisions contained in Sections 6 or 7 above would cause the Company
irreparable harm which could not be adequately compensated in damages alone. The
Executive further acknowledges that it is essential to the effective enforcement
of this Agreement that, in addition to any other remedies to which the Company
may be entitled at law or in equity or otherwise, the Company will be entitled
to seek and obtain, in a summary manner, from any Court having jurisdiction,
interim, interlocutory, and permanent injunctive relief, specific performance
and other equitable remedies, without bond or other security being required. In
addition to any other remedies to which the Company may be entitled at law or in
equity or otherwise, in the event of a breach of any of the covenants or other
obligations contained in this Agreement, the Company will be entitled to an
accounting and repayment of all profits, compensation, royalties, commissions,
remuneration or benefits which the Executive directly or indirectly, has
realized or may realize relating to, arising out of, or in connection with any
such breach. Should a court of competent jurisdiction declare any of the
covenants set forth in Sections 6 or 7 unenforceable, the court shall be
empowered to modify and reform such covenants so as to provide relief reasonably
necessary to protect the interests of the Company and the Executive and to award
injunctive relief, or damages, or both, to which the Company may be entitled.

	9. 	
      ARBITRATION

9.01     Dispute. If a
dispute arises between the parties relating to this Agreement or a breach of
this Agreement (the “Dispute”), which cannot be settled through negotiations,
then except as provided under Section 8 in respect of a breach of the
Executive’s obligations under Sections 6 or 7, or otherwise involving equitable
or injunctive relief, the parties will submit the Dispute to binding arbitration
in accordance with the Dispute resolution procedures set forth in this Section.

19

9.02     Arbitration. The
Dispute will be referred to and finally resolved by arbitration, in accordance
with the Colorado Rules of Civil Procedure and, unless the parties mutually
agree on an arbitrator shall be arbitrated by striking from a list of potential
arbitrators provided by the Judicial Arbiter Group in Denver, Colorado. If the
parties are unable to agree on an arbitrator, the arbitrator will be selected
from a list of seven (7) potential arbitrators provided by the Judicial Arbiter
Group in Denver. The Company and the Executive will flip a coin to determine who
will make the first strike. The parties will then alternate striking from the
list until there is one arbitrator remaining, who will be the selected
arbitrator. Unless the parties otherwise agree and subject to the availability
of the arbitrator, the arbitration will be heard within sixty (60) days
following the appointment and the decision will be binding on the parties and
will not be subject to appeal.

9.03     Costs and
Enforcement. The successful party will be entitled to receive their
legal costs, as fixed by and in the discretion of the Arbitrator, from the
unsuccessful party who will also pay the Arbitrator’s fees. Judgment on any
arbitration award may be entered in any Court having proper jurisdiction. 

	10. 	
      GENERAL

10.01     Notices. Any notice
or other communication required or permitted to be given hereunder will be in
writing and will be given by prepaid first class mail, by facsimile or other
means of electronic communication or by hand delivery as hereinafter provided,
except that any notice of termination by the Company under Sections 4 or 5 will
be hand delivered or given by registered mail. Any such notice or other
communication, if mailed by prepaid first class mail at any time other than
during a general discontinuance of postal service due to strike, lock out or
otherwise, will be deemed to have been received on the fourth business day after
the post marked date thereof, or if mailed by registered mail, will be deemed to
have been received on the day such mail is delivered by the post office, or if
sent by facsimile or other means of electronic communication, will be deemed to
have been received on the business day following the sending, or if delivered by
hand will be deemed to have been received at the time it is delivered to the
applicable address noted below either to the individual designated below or to
an individual at such address having apparent authority to accept deliveries on
behalf of the addressee. Notice of change of address will be governed by this
Section. In the event of a general discontinuance of postal service due to
strike, lock out or otherwise, notices or other communications will be delivered
by hand or sent by facsimile or other means of electronic communication and will
be deemed to have been received in accordance with this Section. Notices and
other communications will be addressed as follows: 

	(a) 	If to the Executive: 	Stephen P. Antony 
		 	2641 South Brentwood Court  
		 	Lakewood, Colorado 80228  
	  	  	  
	(b) 	If to the Company: 	Energy Fuels Inc. and Energy Fuels Resources
      (USA) Inc. 
	  	  	The Chairman 
	  	  	Board of Directors 
	  	  	Energy Fuels Inc. 
	 	 	2 Toronto Street, Suite 500  
	 	 	Toronto, Ontario M5C
  2B6  

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10.02     Headings. The
inclusion of headings in this Agreement is for convenience of reference only and
will not affect the construction or interpretation hereof. 

10.03     Invalidity of
Provisions. Each of the provisions in this Agreement is distinct and
severable, and a declaration of invalidity or unenforceability of any such
provision or part thereof by a court of competent jurisdiction shall not affect
the validity or enforceability of any other provision hereof. To the extent
permitted by applicable law, the parties waive any provision of law which
renders any provision of this Agreement invalid or unenforceable in any respect.

10.04     Entire Agreement.
This Agreement constitutes the entire agreement between the parties pertaining
to the subject matter of this Agreement. This Agreement supersedes and replaces
all prior agreements, if any, written or oral, with respect to the Executive’s
employment by the Company and any rights which the Executive may have by reason
of such prior agreement or by reason of the Executive’s prior employment, if
any, by the Company. There are no warranties, conditions or representations
(including any that may be implied by statute) and there are no agreements
between the parties in connection with the subject matter of this Agreement
except as specifically set forth or referred to in this Agreement. No reliance
is placed on any warranty, representation, opinion, advice or assertion of fact
made either prior to, contemporaneous with, or after entering into this
Agreement, or any amendment or supplement thereto, by the Company or its
directors, officers and agents to the Executive, except to the extent that the
same has been reduced to writing and included as a term of this Agreement, nor
has the Executive been induced to enter into this Agreement, or any amendment or
supplement, by reason of any such warranty, representation, opinion, advice or
assertion of fact. Accordingly there shall be no liability, either in tort or in
contract, assessed in relation to any such representation, opinion, advice or
assertion of fact, except to the extent contemplated above. 

10.05     Waiver, Amendment.
Except as expressly provided in this Agreement, no amendment or waiver of this
Agreement will be binding unless executed in writing by the parties to be bound
thereby. No waiver of any provision of this Agreement will constitute a waiver
of any other provision nor shall any waiver of any provision of this Agreement
constitute a continuing waiver unless otherwise expressly provided. 

10.06     Currency. Except as
expressly provided in this Agreement, all amounts in this Agreement are stated
and shall be paid in United States dollars ($US). 

10.07     Employers and Employees Act
Not to Apply. The Company and the Executive agree that Section 2 of the
Employers and Employees Act (Ontario) will not apply to or in respect of
this Agreement or the employment of the Executive hereunder. 

10.08     Governing Law. This
Agreement will be governed by and construed in accordance with the laws of the
State of Colorado. 

21

10.09     Counterparts. This
Agreement may be signed in counterparts and each such counterpart will
constitute an original document and such counterparts, taken together, will
constitute one and the same instrument. 

10.10     Benefit and Binding Nature
of Agreement. This Agreement will enure to the benefit of and be binding
upon the Executive and the Executive’s heirs, executors, legal personal
representatives and administrators, and upon the Company and its subsidiary and
affiliated companies and successors and assigns. 

10.11     Acknowledgment. The
Executive acknowledges that: 

	(a) 	
      The Executive has had sufficient time to review and
      consider this Agreement thoroughly.

	 	 
	(b) 	
      The Executive has read and understands the terms of this
      Agreement and the Executive’s obligations hereunder.

	 	 
	(c) 	
      The Executive has been given an opportunity to obtain
      independent legal advice or other such advice as the Executive may desire
      concerning the interpretation and effect of this
  Agreement.

10.12     Amendment and
Restatement. This Amended and Restated Employment Agreement
amends, restates and replaces the original October 1, 2015 version of this
Employment Agreement. 

IN WITNESS WHEREOF the parties have
executed this Agreement. 

	ENERGY FUELS INC. 	 	ENERGY FUELS RESOURCES (USA) INC. 
	  	 	  
	Per:   	 	Per:   
	  	 	  
	/s/ J. Birks Bovaird	 	/s/ David C. Frydenlund
	Birks Bovaird, Chairman of the Board 	 	David C. Frydenlund, Director and Sr. Vice
  
	  	 	President, General Counsel and Corporate
      Secretary   
	  	 	  
	  	 	  
	  	 	  
	/s/ Mary Anne Martin 	 	/s/ Stephen P. Anthony
	Witness 	 	STEPHEN P. ANTONY

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