Document:

Exhibit 10.2

                                    AGREEMENT

                              for a Supply of Water

                                     between

                             MIDDLESEX WATER COMPANY

                                     and the

                                 CITY OF RAHWAY

                  --------------------------------------------
                        Entered into as of April 1, 2006
                  --------------------------------------------

<PAGE>

         This Agreement  (hereinafter referred to as the "Agreement") is entered
into as of this 1st day of April 2006 between:

         MIDDLESEX  WATER COMPANY,  a public utility and  corporation  organized
         under the laws of the State of New Jersey,  with offices at 1500 Ronson
         Road, Iselin, New Jersey (hereinafter referred to as "Middlesex")

and the

         CITY OF RAHWAY, a municipal corporation of the State of New Jersey with
         its principal  offices located at City Hall Plaza,  Rahway,  New Jersey
         07065 (hereinafter referred to as "Rahway").

                              W I T N E S S E T H:

         WHEREAS, Middlesex owns and operates a public water supply system; and

         WHEREAS,  Rahway has requested that Middlesex  provide it with a supply
of water for private and public use; and

         WHEREAS, this Agreement is designed to set for the terms and conditions
between the parties relating to a supply of water.

         Now  therefore,  in  consideration  of the  premises  and of the mutual
covenants herein contained, the parties agree that:

1.       Supply of Water.
         ---------------

         Middlesex  agrees to supply  Rahway  with water,  and Rahway  agrees to
accept such water upon the terms and conditions set forth herein.

2.       Term.
         ----

         The  term of this  Agreement  shall  be ten  (10)  years  from the date
hereof.  Except as  otherwise  provided  herein,  or as the parties may mutually
agree upon,  service shall  terminate on a date that is ten (10) years following
the date hereof.

         The terms of the Agreement shall remain in effect after the termination
date and any  periods of  renewal of the  Agreement,  unless  written  notice of
intention  to  terminate  the  Agreement is given by either party at least three
hundred  sixty-five (365) days prior to the end of any such period. In the event
that such notice has not been given,  the Agreement shall remain in effect until
the earlier of (a) renewal or  modification  of the Agreement by consent of both
parties,  or (b) a date no less than three hundred  sixty-five  (365) days after
the date that either party provides written notification of termination.

                                      -2-
<PAGE>

3.       Rates.
         -----

         Rahway  shall pay  Middlesex at a rate which is the sum of (a) the rate
for Service  Under  Contract  pursuant  to Rate  Schedule  No. 5 of  Middlesex's
tariff,  currently  at the rate of  $1,476.72  per  million  gallons  (Exhibit A
attached  hereto),  and (b) the rate for  Transmission  Service pursuant to Rate
Schedule  No. 8 of  Middlesex's  tariff,  currently  at the rate of  $50.00  per
million gallons (Exhibit B attached hereto);  or as applicable rates and tariffs
may be established and/or changed from time to time with the approval of the New
Jersey  Board of Public  Utilities  ("BPU") as  required  by law.  (Such rate is
hereinafter  referred to as the "Contract  Rate.") Rahway shall pay Middlesex at
the said Contract  Rate for the greater of the Daily  Minimum  quantity of water
(as defined below in paragraph 7) or for all water  delivered to Meter  Stations
(as defined below in paragraph 5 (Meter  Stations/Points  of Delivery) up to and
including the Allowable Excess as determined under paragraph 8 (a). Rahway shall
pay Middlesex the applicable Peaking Charges,  set forth in paragraph 8, for all
water in excess of the Allowable Excess,  subject to the provisions of paragraph
9 hereof.

4.       Delivery System.
         ---------------

         Water to be supplied  by  Middlesex  hereunder  shall be  delivered  to
Rahway  through   Middlesex's  water   transmission   system  and  all  existing
interconnections  located on such transmission  system as existed at the date of
this Agreement and such other  interconnections as may be reasonably agreed upon
from time to time.

5.       Meter Stations/Points of Delivery.
         ---------------------------------

         The parties  understand  and agree that delivery  shall be made through
such points of delivery into the Rahway system as may be reasonably  agreed upon
from time to time by the parties (hereinafter  referred to as "Meter Stations").
Water so supplied shall be metered at the Meter  Stations.

6.       Meters, Services and Other Appurtenances.
         ----------------------------------------

         Middlesex  shall  furnish,  install  and  maintain at its own cost such
service  connections and meters as it shall deem necessary for connection to the
Meter  Stations.  The meters and  service  pipes  shall  remain the  property of
Middlesex.  Middlesex  shall  maintain and verify the accuracy of said meters at
least annually,  and Rahway,  at its sole cost, shall have the right to test the
meters at the Meter Stations by a certified meter

                                      -3-
<PAGE>

technician at any reasonable time upon written notice to Middlesex. Rahway shall
provide for  furnishing,  installing  and  maintaining at its own cost all other
piping,  fittings,  valves,  meter pits or vaults and  appurtenances,  including
pressure reducing stations, necessary to take water from Middlesex.

7.       Minimum Payment Obligation.

         (a) Rahway shall be obligated to pay for the Daily Minimum  quantity of
water at the Contract Rate. "Daily Minimum" shall mean:

                  (i)      One hundred thousand (100,000) gallons of water a day
                           (0.10 million gallons per day (mgd)), or

                  (ii)     Such greater amount as may be elected under paragraph
                           7 (b) of this Agreement.

         (b) At any time  during the term of this  Agreement,  Rahway may elect,
upon written  notification to Middlesex,  to increase the Daily Minimum quantity
of water to a greater quantity of water (hereinafter referred to as the "Revised
Daily  Minimum").  Once such an  election is made by Rahway,  the Revised  Daily
Minimum quantity of water shall remain in effect for a period of at least twelve
(12) months from the effective date of such election  unless  further  increased
pursuant to this  Agreement.  At the end of such twelve (12) month  period,  the
Revised  Daily  Minimum shall remain in effect unless Rahway shall further amend
(increase or decrease)  the Revised Daily  Minimum.  Each such election to amend
shall be on written  notice to Middlesex and shall remain in effect for a period
of twelve (12) months from the effective  date of such election  unless  further
increased pursuant to this Agreement. Any election to decrease the Revised Daily
Minimum  shall not be reduced below the initial  amount of one hundred  thousand
(100,000)  gallons  of  water  a day  specified  in  paragraph  7(a)(i)  of this
Agreement.

8.       Peaking Charges.
         ---------------

         (a) The  total  daily  quantity  of water  taken by Rahway at the Meter
Stations may exceed the Daily  Minimum or the Revised Daily Minimum by up to 50%
on a 24-hour basis without  affecting the Contract  Rate.  The quantity of water
taken in the peak hour  multiplied  by 24 may  exceed  the Daily  Minimum or the
Revised Daily Minimum by up to 100% without  affecting the Contract  Rate.  Such
excess quantities of water are known as the "Allowable Excess".

                                      -4-
<PAGE>

         (b) If the quantity of water taken in a 24-hour period shall exceed the
Daily  Minimum or the Revised Daily  Minimum by more than 50%,  ("Daily  Peaking
Excess"),  Rahway shall pay for such Daily Peaking  Excess at a rate (the "Daily
Peaking Rate") determined by the following formula:

                  (i)      A  fraction  (the  numerator  of which is the  actual
                           daily  usage;  and the  denominator  of  which is the
                           applicable  Daily  Minimum or Revised  Daily  Minimum
                           then in effect  multiplied by 1.5)  multiplied by the
                           Contract Rate. For example, if the actual daily usage
                           is .25 million gallons,  and the Daily Minimum is .10
                           million gallons and the Contract Rate is

                           $1,500.00:
                                 .25        x    Contract Rate
                           ---------
                           .10 x 1.5

                           1.67             x    $1,500.00 = $2,505.00 (Daily
                                                                        Peaking
                                                                          Rate)

                           In this  example,  the charge  for the Daily  Peaking
                           Excess would be $250.00 calculated as follows:

                           .25   -   .15 (Allowable Excess) = .10 (Daily Peaking
                                                                         Excess)
                           .10   x   $2,505.00 = $250.50

         (c) If  the  quantity  of  water  supplied  in the  maximum  peak  hour
multiplied  by 24 shall exceed the Daily Minimum or the Revised Daily Minimum by
more than 100%,  ("Hourly  Peaking  Excess")  Rahway  shall pay for such  Hourly
Peaking  Excess with a charge (the "Hourly  Peaking  Charge")  determined by the
following  formula:

                           (i)      A fraction  (the  numerator  of which is the
                                    quantity  of water  supplied  in the maximum
                                    peak  hour   multiplied   by  24;   and  the
                                    denominator of which is the applicable Daily
                                    Minimum or  Revised  Daily  Minimum  then in
                                    effect  multiplied by 2.0) multiplied by the
                                            ----------
                                    Contract Rate.

                                    For  example,   if  the  quantity  of  water
                                    supplied in the maximum peak hour multiplied
                                    by 24 equals .30  million  gallons;  and the

                                      -5-
<PAGE>

                                    Daily Minimum is .10 million gallons and the
                                    Contract Rate is

                                    $1,500.00:
                                          .30     x    Contract Rate
                                    ---------
                                      .10 x 2

                                         1.50     x    $1,500.00 = $2,250.00
                                                       (Hourly Peaking Charge)

                                    In this example,  the charge for such Hourly
                                    Peaking   Excess  would  be   calculated  as
                                    follows:

                                    300,000 gal. / 24 = 12,500

                                    200,000 gal. / 24 = 8,333

                                    Calculated maximum

                                    Peak hour excess =
                                                     12,500 - 8,333 = 4,167 gal.

                                    Hourly Peaking Charge x Calculated Max. Peak
                                    Hour Excess

                                    $2,250 mgd                   4,167 gal.
                                    $2,250 mgd            x    .004167

                                       = $9.375 for such Hourly Peaking Excess

                                    A similar calculation would be made for each
                                    day there is an Hourly Peaking  Excess,  but
                                    there shall not be more than one such Hourly
                                    Peaking Charge in each 24-hour period.

         (d) In no instance,  and under no  conditions,  shall the daily 24-hour
quantity of water  supplied and purchased  under this  Agreement  exceed One (1)
million  gallons,  nor shall the maximum  hourly flow exceed the rate of Two (2)
million gallons per day, unless otherwise agreed in writing by the parties.

         (e) Notwithstanding  anything herein to the contrary, the obligation of
Middlesex to supply water under this  Agreement  beyond the Daily Minimum or the
Revised Daily  Minimum,  as the case may be, is subject to Middlesex  having the
supply and capacity to provide such amounts.

9.       Exceptions for Special Circumstances
         ------------------------------------

         Notwithstanding  anything to the contrary herein, the parties recognize
that at  different  times  during the year,  Rahway  experiences  a problem with
excess chloride in its

                                      -6-
<PAGE>

water (the "Chloride Issue").  In addition,  at different times during the year,
Rahway  experiences an additional passing flow problem whereby it is required to
cease  taking,  or decrease  the amount of, water which it may legally take from
the Rahway River (the "Passing Flow Issue").

         In the event  that  Rahway  is  experiencing  either of these  problems
throughout the year and properly  notifies  Middlesex of such problems,  and the
expected  duration of the same,  then and in such event,  Middlesex  agrees that
Rahway  shall be obligated to pay for the amount of water needed to address each
such problem according to the following schedule:

         (a) For the daily  amount of water used for the  Chloride  Issue during
the period  from  October 1 - April 30,  Rahway  shall pay for such water at the
Contract Rate set forth herein without regard to any additional  Peaking Charges
as set forth in paragraph 8 hereof.

         (b) For the  daily  amount of water  used for the  Passing  Flow  Issue
during the period from October 1 - April 30,  Rahway shall pay for such water at
the Contract  Rate set forth herein  without  regard to any  additional  Peaking
Charges as set forth in paragraph 8 hereof.

         (c) For the daily  amount of water used for the  Chloride  Issue during
the period from May 1 -  September  30,  Rahway  shall pay for such water at the
Contract Rate set forth herein without regard to any additional  Peaking Charges
as set forth in paragraph 8 hereof,  provided  that the amount of water used for
the Chloride Issue does not exceed one million  gallons per day. For any amounts
of water used in excess of one  million  gallons per day,  Rahway  shall pay for
such excess at a Daily Peaking Rate as determined under paragraph 8 hereof.

         (d) For the  daily  amount of water  used for the  Passing  Flow  Issue
during the period from May 1 - September  30, Rahway shall pay for such water in
accordance  with the  provisions of  paragraphs 7 and 8 herein,  except that the
amount charged as the Daily Peaking Rate shall not exceed and shall be capped at
the rate for one million gallons under the  Consumption  Charges as set forth in
Rate  Schedule No. 1 - General  Water  Service - GS (the "Retail  Rate") then in
effect under the applicable  Middlesex  Tariff. As

                                      -7-
<PAGE>

of the date of the Agreement, the Retail Rate is the equivalent of $2,938.70 per
million gallons of water used.

10.      Payment.
         -------

         The terms are net cash on presentation of invoice.

11.      Combined Charge.
         ---------------

         Payments for water (in excess of the Daily Minimum or the Revised Daily
Minimum and  adjustments of the Daily Minimum or the Revised Daily Minimum under
paragraph  7) shall be  determined  on the  basis of the  combined  total  daily
quantity of water supplied through all the Meter Stations as determined by meter
readings at said Meter Stations.

12.      Meter Readings.
         --------------

         Middlesex  will read the meters daily (at a regular hour  determined by
Middlesex)  for  all  water  supplied  to  Rahway  at  each  connection  then in
operation.

13.      Definitions.
         -----------

         Where the words "daily" or "24 hours" are used in this  contract,  they
shall refer to the 24-hour period between the daily meter readings.

14.      Quality.
         -------

         All water  delivered  to Rahway by  Middlesex  under this  Agreement is
intended  to comply with all Federal  and State  primary  requirements  for safe
drinking water.

15.      Scheduling.
         ----------

         Middlesex shall have the right to modify its rate of delivery to manage
its system requirements in accordance with accepted operating procedures. Rahway
shall give Middlesex  reasonable  advance notice of any  anticipated  departures
from its then normal usage.

16.      Exceptions for Emergencies.
         --------------------------

         The Daily Minimum or Revised Daily Minimum payment obligation shall not
be  affected  in the event that the amount of water  supplied  by  Middlesex  to
Rahway exceeds the daily or hourly  limitations  established herein for not more
than twenty-four (24) hours in case of documented fire or main break emergencies
experienced  by Rahway  and for not more that five (5) days in the case of other
exceptional circumstances experienced by Rahway requiring an emergency supply of
water,  provided  Middlesex is promptly

                                      -8-
<PAGE>

notified that any such emergency exists. It is at the sole reasonable discretion
of Middlesex to determine if such  requests meet the criteria of an emergency as
contemplated in this Agreement.

17.      Excused Performance.
         -------------------

         Middlesex  agrees to provide a  continuous,  regular and  uninterrupted
supply of water at the Meter Stations,  subject to delays in initiating  service
or interruptions in service by reasons of acts of God, accident,  strike,  legal
process, or other cause beyond its control, or failure, refusal, or delay on the
part of any  governmental  or  regulatory  body having  jurisdiction  in issuing
permits,  approvals,  authorizations,   licenses,  rights-of-way  or  the  like.
Middlesex  shall not be liable  for  damages  to Rahway by reason of  inadequate
pressure  or  volume  or  quality  or  failure  to  provide  water for any cause
whatsoever  provided  that the same  does not  arise  out of the  negligence  of
Middlesex.  In the event of an interruption in service  Middlesex  agrees to act
diligently within the bounds of normal operating procedures to return service to
normal.

18.      Indemnification.
         ---------------

         Rahway shall completely indemnify,  protect and save harmless Middlesex
from  any  and  all  costs,  expenses,  liability,  losses,  claims,  suits  and
proceedings of any nature whatsoever arising out of the water service by Rahway.
However, as to claims involving water quality, this paragraph is intended not to
apply to water until after it is delivered to Rahway system,  i.e.,  after water
is supplied through points of delivery referred to in paragraph 5.

         Middlesex shall completely indemnify,  protect and save harmless Rahway
from all costs,  expenses,  liability,  losses, claims, suits and proceedings of
any nature whatsoever caused by any breach by Middlesex of its obligations under
this Agreement.

         Notwithstanding anything herein to the contrary, each party's aggregate
liability to the other arising out of or in connection with this Agreement shall
not exceed an amount equal to two times one year's gross revenues required to be
paid by Rahway to  Middlesex  based  upon the Daily  Minimum  or  Revised  Daily
Minimum in effect at the time of the  occurrence  giving rise to the  liability,
and each party hereby  releases the other from any liability in excess  thereof.
This  paragraph  is not  intended to limit  either  party's  liability  to third
parties.

                                      -9-
<PAGE>

19.      Regulatory Approvals.
         --------------------

         This  Agreement  shall be filed with and subject to approval by the BPU
and the New Jersey Department of Environmental  Protection as may be required by
law.
         Middlesex  shall  expeditiously  initiate the said filings for the said
approvals.  Both parties  agree to cooperate and act in good faith in connection
with obtaining these and any other regulatory authorizations.

20.      Miscellaneous.
         -------------

         To  the  extent  not  inconsistent  with  this  Agreement,   all  other
provisions of Middlesex's tariff shall be deemed to govern service hereunder.

         This Agreement  shall be governed by and interpreted in accordance with
the laws of the State of New Jersey.

                                      -10-
<PAGE>

         IN WITNESS  WHEREOF,  the parties have caused this Agreement to be duly
executed as of the day and year first written above.

                                                     MIDDLESEX WATER COMPANY

ATTEST:
                                                     By: /s/ Dennis W. Doll
                                                        -------------------
                                                     Dennis W. Doll
                                                     President
/s/ Kenneth J. Quinn
--------------------
Kenneth J. Quinn
Secretary

                                                     CITY OF RAHWAY
ATTEST:

                                                     By: /s/ James J. Kennedy
                                                         --------------------
/s/ Jean D. Kuc                                      James J. Kennedy
---------------
Jean D. Kuc                                          Mayor
City Clerk

                                      -11-Exhibit 10.31

 

Exhibit 10.31

GENIZON BIOSCIENCES INC.

(As Issuer)

- and -

COMPUTERSHARE TRUST COMPANY OF CANADA

(as Trustee)

SECURED CONVERTIBLE DEBENTURE INDENTURE

Bearing formal date of March 24, 2006

STIKEMAN ELLIOTT LLP

 

 

     THIS INDENTURE is entered into on this 27th day of March, 2006

	 	 	 
	BETWEEN:

	 	COMPUTERSHARE TRUST COMPANY OF CANADA (the “Trustee”), a trust
company organized and existing under the laws of Canada, having
its head office at Toronto, Ontario, and a place of business at
1500 University Street, Suite 700, Montreal, Québec, H3A 3S8;
	 
	 	 
	AND:

	 	GENIZON BIOSCIENCES INC. (the “Corporation”), a corporation
incorporated under the laws of Canada, having its head office and
principal place of business at 880 McCaffrey, St. Laurent,
Québec, H4T 2C7;

RECITALS:

WHEREAS the Corporation is desirous of creating and issuing convertible debentures to be issued in
the manner set forth herein;

WHEREAS the Corporation is authorized to create and issue the Debentures (as defined hereinafter)
as provided hereunder;

WHEREAS all things necessary have been done and performed to make the Debentures, once certified by
the Trustee and issued in accordance with the terms of the present Indenture, legal, valid and
binding obligations of the Corporation with the benefits and subject to the terms of this
Indenture;

NOW THEREFORE the parties hereto, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, hereby covenant and agree as follows.

ARTICLE 1

INTERPRETATION

1.1 Definitions

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

	(a)	 	“Affiliate” has the meaning attributed to such term in the Canada Business Corporations Act
as the same may be amended from time to time and any successor legislation thereto;

 

 

  -2-  

	(b)	 	“Agreement” or “Indenture” means this agreement and all schedules attached to this agreement,
in each case as they may be amended or supplemented from time to time, and the expressions
“hereof”, “herein”, “hereto”, “hereunder”, “hereby” and similar expressions refer to this
agreement, and unless otherwise indicated, references to Articles and sections are to Articles
and sections in this agreement;
	 
	(c)	 	“Business” means the discovery of genes associated with common diseases and drug response, as
well as research activities downstream of these discoveries and other genetic research;
	 
	(d)	 	“Business Day” means any day, other than Saturday, Sunday or any statutory holiday in the
Province of Québec;
	 
	(e)	 	“Canadian Resident Holder” means a person that is a resident in Canada who is an individual,
partnership, trust or corporation which is not (i) a public company (as such term is defined
in the Income Tax Act (Canada)) or (ii) a company controlled by non-residents of Canada or
public companies (as such term is defined in the Income Tax Act (Canada));
	 
	(f)	 	“Class G Preferred Shares” means the class “G” convertible voting preferred shares created
pursuant to the amendment of the articles of the Corporation immediately prior to the First
Closing;
	 
	(g)	 	“Class H Preferred Shares” means the class “H” convertible subordinate voting preferred
            shares created pursuant to the amendment of the articles of the Corporation immediately prior
to the First Closing;
	 
	(h)	 	“Closing” means, as applicable, the First Closing Date, the Second Closing Date or the Third
Closing Date;
	 
	(i)	 	“Conversion Discount” has the meaning ascribed to it in Section 5.1 hereof;
	 
	(j)	 	“Corporation” means Genizon BioSciences Inc., a corporation incorporated under the laws of
Canada;
	 
	(k)	 	“Counsel to the Corporation” means Stikeman Elliott LLP;
	 
	(l)	 	“Debenture” means any Debenture of the Corporation created, issued and certified hereunder
and from time to time being outstanding;
	 
	(m)	 	“Debentureholder Instrument” means a direction addressed to the Trustee and signed by the
Debentureholders holding a minimum of 662/3% of the aggregate principal amount of outstanding
Debentures;
	 
	(n)	 	“Debentureholders”, “Holder of a Debenture” or “Holder” means, at any given time, the
registered holder(s) of Debentures at such time;

 

-3-

	(o)	 	“Documents” means this Indenture, the Debentures, the Subscription Agreement and the Security
Documents;
	 
	(p)	 	“Event of Default” has the meaning ascribed to it in Section 10.1 hereof;
	 
	(q)	 	“First Closing Date” means March 27, 2006;
	 
	(r)	 	“Illumina” means Illumina, Inc., a company organized and existing under the laws of the State
of Delaware, United States;
	 
	(s)	 	“Illumina Debenture” has the meaning ascribed to it in Section 9.1 hereof;
	 
	(t)	 	“Illumina Warrants” has the meaning ascribed thereto in Section 9.2 hereof;
	 
	(u)	 	“Indebtedness” includes, for any Person:

	 	(i)	 	obligations for borrowed money;
	 
	 	(ii)	 	obligations under letters of credit or letters of guarantee or obligations to
financial institutions who issued such letters of credit or letters of guarantee for
the account of such Person;
	 
	 	(iii)	 	obligations under banker’s acceptances; and
	 
	 	(iv)	 	obligations under derivative instruments.

	(v)	 	“Intellectual Property” means any trade mark, copyright, industrial design, patent, goodwill,
invention, trade name, trade secret, trade process, license, permit, franchise, know how and
any other intellectual property right of the Corporation, including any application or
registration relating thereto, if any, and any improvements and modifications thereto as well
as rights in any claim against third parties in connection with the protection of any such
intellectual property rights or infringement thereto, in Canada or abroad;
	 
	(w)	 	“Interest Payment Date” means the two semi-annual interest payment dates set forth on the
first page of each Debenture, which shall be the date that is 6 months following the issuance
of such Debenture and the date of the issuance of such Debenture, respectively;
	 
	(x)	 	“Lien” means any security interest, lien, charge, pledge, encumbrance, prior claim, hypothec,
mortgage, adverse claim or any other arrangement or condition that in substance secures
payment or performance of an obligation and includes a title retention agreement of any nature
or kind;
	 
	(y)	 	“Liquidity Event” means any of the following: (i) the completion of a public offering of
shares of the Corporation; (ii) the sale or disposition of all or substantially all of the
issued and outstanding shares in the share capital of the Corporation for cash proceeds or, if
the acquirer is a public company, for consideration consisting, in whole or in part, of shares
of the acquirer listed on a nationally recognized stock exchange or quoted on a quotation
system; (iii) the sale or disposition of all or substantially all of the assets of the
Corporation for cash proceeds or, if the acquirer is a public company, for consideration
consisting, in whole or in part, of shares of the acquirer listed on a

 

-4-

	 	 	nationally recognized
stock exchange or quoted on a quotation system; or (iv) the consolidation, merger or
reorganization or the acquisition of the Corporation by another entity following which the
shareholders of the Corporation own less than 50% of the voting securities of the surviving
corporation or its parent corporation (i.e., a change of control) listed on a nationally
recognized stock exchange or quoted on a quotation system;
	 
	(z)	 	“Major Event of Default” means any Event of Default under either of Section 10.1(a), 10.1(b),
10.1(c) or 10.1(d);
	 
	(aa)	 	“Maturity Date” means the earlier of the following dates: (i) (A) with respect to Debentures
issued on the First Closing Date, the date that is 24 months after the First Closing Date, (B)
with respect to Debentures issued on the Second Closing Date, the date that is 24 months after
the Second Closing Date, or (C) with respect to Debentures issued on the Third Closing Date,
the date that is 24 months after the Third Closing Date; and (ii) the date on which an Event
of Default occurs;
	 
	(bb)	 	“Non-Canadian Resident Holder” means a person that is not a Canadian Resident Holder;
	 
	(cc)	 	“Offering” means the issue of the Debentures in accordance with the terms and conditions of
this Indenture;
	 
	(dd)	 	“Ordinary Debentureholder Instrument” means a direction addressed to the Trustee and signed
by the Debentureholders holding a minimum of 50% of the aggregate principal amount of
outstanding Debentures;
	 
	(ee)	 	“Part XIII Tax” has the meaning ascribed to it in Article 3 hereof;
	 
	(ff)	 	“Permitted Encumbrances” means the following Liens:

	 	(i)	 	the Security Documents to be granted in accordance with the provisions
hereof;
	 
	 	(ii)	 	Liens existing under the Senior Indebtedness;
	 
	 	(iii)	 	the reservation in the original grant of an immovable from the Crown;
	 
	 	(iv)	 	Liens which are customary, inchoate or minor property Liens incurred in the
ordinary course of business for debts which are not overdue and which, in the
aggregate, do not significantly reduce the value of the property or significantly
impair the use for which it was intended;

 

-5-

	 	(v)	 	title defects or irregularities which are of a minor nature and in the
aggregate will not substantially impair the use of the property affected by any such
title defect or irregularity for the purposes for which it is held by the Corporation,
nor substantially diminish the Liens created under the Security Documents;
	 
	 	(vi)	 	the pledges or deposits made pursuant to laws relating to workmen’s
compensation or similar laws, or deposits made in good faith in connection with
offers, tenders, leases or contracts (excluding, however, the borrowing of money or
the repayment of money borrowed), deposits of cash or securities in order to secure
appeal bonds or bonds required in respect of judicial proceedings;
	 
	 	(vii)	 	Liens for taxes or assessments not yet due or for which payment is not yet
delinquent;
	 
	 	(viii)	 	Liens for taxes or assessments, due or past due and payable, the validity of which
is being contested in good faith by the Corporation by appropriate proceedings timely
instituted; provided, however, that where taxes must be paid or deposited in whole or
in part subject to resolution of such contest in order to stay enforcement of such
Lien, such taxes or required part thereof shall have been so paid or deposited;
	 
	 	(ix)	 	Liens for services performed for or materials delivered to the Corporation
for which payment is not yet delinquent, and attachments, judgments and other similar
Liens arising in connection with services performed or materials delivered; provided,
however, that the execution or other enforcement of such Liens is effectively stayed
and the claims secured thereby are being contested in good faith by appropriate
proceedings and for which the Corporation has deposited with the Trustee a letter of
credit or a suretyship satisfactory to the Trustee in an amount sufficient to pay in
principal, interest and costs whatever may be owing should such contestation be
unsuccessful;
	 
	 	(x)	 	Liens resulting from security given under any securitization or monetization
of assets program in accordance with standard market practice;
	 
	 	(xi)	 	Liens securing Purchase Money Obligations provided such Liens charge only the
asset subject to the Purchase Money Obligations; and
	 
	 	(xii) 	 	Liens existing as at the date hereof.

	(gg)	 	“Permitted Indebtedness” means:

	 	(i)	 	the outstanding obligations under the Debentures; and
	 
	 	(ii)	 	the Senior Indebtedness;

 

-6-

	(hh)	 	“Person” means any individual, partnership, limited partnership, joint venture, syndicate,
sole proprietorship, company or corporation, with or without share capital, unincorporated
association, trust, trustee, executor, administrator or other legal personal representative,
regulatory body or agency, government or governmental agency, authority or entity however
designated or constituted;
	 
	(ii)	 	“Purchase Money Obligations” means the outstanding balance of the purchase price of equipment
incurred to finance the acquisition thereof;
	 
	(jj)	 	“Second Closing Date” means the date on which the Corporation issues Debentures pursuant to
this Indenture for the second time;
	 
	(kk)	 	“Security Documents” means the deed of hypothec dated March 24, 2006 between the Corporation
and the Trustee, as further described in Article 6 hereof;
	 
	(ll)	 	“Senior Indebtedness” means (i) the $7 million loan by La Financière du Québec
(Investissement Québec) to the Corporation pursuant to an Offre de Prêt accepted by the
Corporation on January 9, 2004; (ii) the $2.625 million loan by La Financière du Québec
(Investissement Québec) pursuant to an Offre de Prêt accepted by the Corporation on July 18,
2002; (iii) the credit facilities in the aggregate amount of $4.5 million granted by Royal
Bank of Canada to the Corporation pursuant to a letter agreement dated December 7, 2005
consisting of two demand facilities for research and development (R&D) tax credit financing;
and (iv) a future capital lease or term loan with a financial institution for an amount not
exceeding $3 million, consisting of R&D equipment credit facilities; including any renewal or
refinancing of any of items (i) to (iv) above;
	 
	(mm)	 	“Shares” means the Class G Preferred Shares and the Class H Preferred Shares;
	 
	(nn)	 	“Subscription Agreement” means the Subscription Agreement to be entered into as of each
Closing Date between the Corporation and each Holder;
	 
	(oo)	 	“Third Closing Date” means the date on which the Corporation issues Debentures pursuant to
this Indenture for the third time which shall be no later than 120 days following the First
Closing Date or such later date as may be agreed upon by the Corporation and the investors
subscribing for Debentures to be issued on the Third Closing Date;
	 
	(pp)	 	“Trustee” means Computershare Trust Company of Canada, or any successor trustee pursuant to
Section 13.2;

 

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1.2 Meaning of “outstanding”

     Any Debenture certified and delivered by the Trustee hereunder shall be deemed to be
outstanding until it is cancelled or delivered to the Trustee for cancellation, or a new Debenture
is issued in substitution therefor under the provisions hereof, or monies for the payment thereof
have been set aside according to the provisions of Section 15.2 hereof, provided that:

	(a)	 	Where a new Debenture has been issued in substitution for a Debenture which has been
mutilated, lost, stolen or destroyed, only the new Debenture shall be counted for the purpose
of determining the aggregate principal amount of Debentures outstanding;
	 
	(b)	 	Debentures that have been partially redeemed, repaid or converted shall be deemed to be
outstanding only to the extent of the unredeemed, unrepaid or unconverted portion of the
principal amount thereof; and
	 
	(c)	 	For the purpose of any provision of this Indenture entitling Debentureholders to vote, sign
consents, requisitions or other instruments or take any action under this Indenture or to
constitute a quorum at any meeting of Debentureholders, Debentures owned directly or
indirectly by the Corporation or any Affiliate thereof, shall be disregarded.

1.3 Schedules

     The following are the schedules attached to this Indenture which shall, for all purposes of
this Indenture, form an integral part hereof:

     Schedule 2.3 — Form of Debentures.

1.4 Headings

     The division of this Indenture into Articles and Sections and the inclusion of headings are
for convenience of reference only and shall not affect the construction or interpretation of this
Indenture.

1.5 Gender and Number

     In this Indenture, unless the context otherwise requires, any reference to gender includes all
genders and words importing the singular number only include the plural and vice versa.

1.6 Currency

     Except where otherwise expressly provided, all amounts in this Indenture are stated and shall
be paid in lawful money of Canada.

 

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1.7 Generally Accepted Accounting Principles

     In this Indenture, except to the extent otherwise expressly provided, references to “generally
accepted accounting principles” or “GAAP” mean, at any time, all accounting principles recommended
in the Handbook of the Canadian Institute of Chartered Accountants at the relevant time applied on
a consistent basis.

1.8 Invalidity of Provisions

     Each of the provisions contained in this Indenture is distinct and severable from the others
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.

1.9 Entire Agreement

     This Indenture supersedes all prior agreements between the parties with respect to the subject
matter dealt with herein and constitutes the entire agreement between the parties pertaining to the
subject matter hereof.

1.10 Waiver, Amendment

     Except as expressly provided in this Indenture, no amendment or waiver of this Indenture shall
be binding unless executed in writing by the party to be bound thereby. No waiver of any provision
of this Indenture shall constitute a waiver of any other provision nor shall any waiver of any
provision of this Indenture constitute a continuing waiver unless otherwise expressly provided.

1.11 Non-Business Days

     Whenever any payment to be made hereunder shall be stated to be due or any other actions to be
taken hereunder shall be stated to be required to be taken on a day other than a Business Day, such
payment shall be made and such other action shall be taken on the next succeeding Business Day.

1.12 Formal Date of Agreement

     For reference purposes only, this Agreement can be referred to as bearing the formal date of
March 24, 2006 notwithstanding its actual date of execution.

1.13 Governing Law

     This Indenture shall be governed by and construed in accordance with the laws of the Province
of Québec and the federal laws of Canada applicable therein.

 

-9-

ARTICLE 2

ISSUE OF DEBENTURES

2.1 Creation and Limit of Issue of Debentures

     The Debentures created and issued hereunder are limited to an aggregate principal amount of
$25,000,000. The Debentures may be issued on the First Closing Date, the Second Closing Date or the
Third Closing Date, subject to compliance with the provisions and restrictions hereinafter set
forth.

2.2 Designation and Terms of Debentures

	(a)	 	The Debentures shall be designated “Secured Convertible Debentures”.
	 
	(b)	 	The Debentures shall be issued as fully registered debentures and shall be dated the date of
their issue and shall mature at the Maturity Date. Provided no Liquidity Event has occurred
prior to the Maturity Date, the Corporation will return, at the Maturity Date, 112.5% of the
principal amount of the outstanding Debentures, directly to the registered Holders of
Debentures, in lawful money of Canada, together with accrued and unpaid interest thereon (for
a total two year cash-on-cash return of 30%). No notice of repayment shall be required to be
given by the Corporation.
	 
	(c)	 	The outstanding principal amount of each Debenture issued hereunder shall bear interest, for
the first calendar year after the Closing Date on which such Debenture was issued, at the
annual rate of 5% and, for the second calendar year after the Closing Date on which such
Debenture was issued, at the annual rate of 12.5%, and will be paid semi-annually at each
Interest Payment Date. Any unpaid interest shall bear interest at the same rate per annum
commencing on the date it becomes due to the date it is fully paid, calculated daily and
payable on demand. Interest on the Debentures and on overdue interest shall be paid directly
by the Corporation to the registered Holders of Debentures. Interest unpaid when due shall
bear interest at the same rate, calculated daily, after as well as before default and before
and after demand and judgment.
	 
	(d)	 	The Debentures are secured by the Lien described in Article 6 hereof.
	 
	(e)	 	The Debentures shall be convertible as to any or all outstanding principal amount and
interest thereon in accordance with Article 5 hereof.
	 
	(f)	 	The principal of the outstanding Debentures shall be repayable, and interest thereon shall be
paid, at the address of the Debentureholders as indicated on the register of the Trustee.
	 
	(g)	 	The Debentures shall have the other attributes and be subject to the provisions set out in
this Indenture.

 

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2.3 Form of Debentures

     The Debentures and the certificate of the Trustee shall be substantially in the form set out
in the Schedule 2.3 hereto with such appropriate additions, deletions, substitutions and variations
as may be required or permitted by the terms of this Indenture or as may be required to comply with
any law or the rules of any securities commission as may be determined by the officer of the
Corporation executing any Debenture, such determination to be conclusively evidenced by his or her
execution thereof.

2.4 Rank of Debentures

     Subject to the provisions hereof, the Debentures certified and issued hereunder shall rank
pari passu with one another without discrimination, preference or priority, whatever may be their
respective actual date of issue provided however, that, in the case of Debentures issued at
different times, principal and interest, if any, may, prior to any accelerated payment thereof
pursuant to Section 10.2, be payable at different times. The Debentures will rank senior to all
common and preferred equity of the Corporation and junior to the Senior Indebtedness.

2.5 Issue and execution of Debentures

	(a)	 	The Debentures hereby created shall forthwith upon issuance be executed by the Corporation
and delivered to the Trustee and shall be certified by or on behalf of the Trustee to or upon
the written order of the Corporation without the Trustee receiving any consideration therefor.
	 
	(b)	 	The Debentures shall be signed by at least one officer of the Corporation holding office at
the time of signing. Such signatures on Debentures may be printed or otherwise mechanically
reproduced thereon and Debentures so signed are as valid as if they had been signed manually.
If a Debenture contains a printed or mechanically reproduced signature of a Person, then the
Corporation may issue the Debenture even though the Person has ceased to be an officer of the
Corporation and such Debenture is as valid as if the Person were an officer at the date of its
issue.

2.6 Certification

	(a)	 	No Debenture shall be issued or, if issued, shall be obligatory or entitle the
Debentureholder thereof to the benefit hereof, until it has been certified by or on behalf of
the Trustee substantially in the form of the certificate set out in the Schedule 2.3 hereto or
in some other form approved by the Trustee. Such certification by the Trustee on any Debenture
shall be conclusive evidence that such Debenture has been duly issued hereunder and is a valid
obligation of the Corporation and that the Debentureholder is entitled to the benefits hereof.
	 
	(b)	 	The certificate of the Trustee on the Debentures shall not be construed as a representation
or warranty by the Trustee as to the validity of this Indenture or

 

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	 	 	of the Debentures or as to
the performance of the Corporation of its obligations hereunder (except the due certification
thereof and any other warranties implied by law) and the Trustee shall in no respect be liable
or answerable for the use made of any Debenture or proceeds thereof.

2.7 Registration and Transfer

	(a)	 	The Corporation shall cause to be kept by and at the principal office of the Trustee in the
City of Montreal, a central register and at such other places, if any, as may be designated by
the Corporation and approved by the Trustee, in which shall be entered the names and addresses
of the Debentureholders and particulars of the Debentures held by them respectively. Such
registration shall be noted on the Debentures by the Trustee. No transfer of a Debenture shall
be effective against the Corporation unless made on one of the registers and made by the
Debentureholders or its liquidators of succession or administrators or other legal
representatives or its or their attorney duly appointed by an instrument in form and execution
satisfactory to the Trustee and upon compliance with such requirements prescribed in Section
16.1 hereof and such other requirements as the Trustee may prescribe, and unless such transfer
shall have been duly noted on such Debenture by the Trustee.
	 
	(b)	 	The registered Holder of a Debenture, on whatever register the same may be registered, shall
be entitled to have such Debenture transferred at any of the places at which a register is
kept pursuant to the provision of this Section 2.7. A Debenture may only be transferred on one
of such registers by the registered Debentureholder or its duly appointed mandatary for such
purpose and upon compliance with such other reasonable requirements as the Trustee or other
registrar may prescribe, and upon due notation of such transfer on such Debenture by the
Trustee.
	 
	(c)	 	A transferee of a Debenture shall, after the appropriate form of transfer is lodged with the
Trustee and upon compliance with any requirements prescribed under this Indenture, be entitled
to be entered on a register as the owner of such Debenture.
	 
	(d)	 	Neither the Corporation nor the Trustee shall be bound to take notice of or see to the
execution of any trust, whether express, implied or constructive, in respect of any Debenture,
and any Debenture may be transferred on the direction of the registered Debentureholder
thereof, whether named as trustee or otherwise, as though that person were also the beneficial
owner thereof.
	 
	(e)	 	Except in the case of the register required to be kept at the City of Montreal, the
Corporation shall have the power, at any time, to close any register and, in that event, it
shall transfer the records thereof to another existing register or to a new register and
thereafter the Debentures registered on the closed register shall be deemed to be registered
on such existing or new register, as the case may be. In the event that the register in any
place is closed and the records transferred to a register in another place, notice of such
change shall be given to each

 

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	 	 	Debentureholder registered in the register so closed and the
particulars of such change shall be recorded in the central register required to be kept in
the City of Montreal.
	 
	(f)	 	The Holder of any Debenture shall be entitled to inspect the registers of Debentureholders at
any time during normal business hours of the Trustee and to make extracts therefrom.

2.8 Ownership

     Subject to any applicable law, the person in whose name any Debenture is registered shall, for
all the purposes of this Indenture, be and be deemed to be the owner thereof and payment of or on
account of the principal and interest thereon, shall be made only to or upon the order in writing
of such Person and such payment shall be a good and sufficient discharge of the Corporation, for
the amount paid.

2.9 Mutilation, Loss or Destruction of Debentures

     If any Debenture shall become mutilated or be lost, destroyed or stolen, and in the absence of
notice that such Debentures have been acquired by a “bona fide purchaser” within the meaning of the
Canada Business Corporations Act, the Corporation, in its discretion, may issue, and thereupon the
Trustee shall certify and deliver or cause to be delivered, a new Debenture of like date and tenor
upon surrender and cancellation of the mutilated Debenture or, in the case of a lost, destroyed or
stolen Debenture, in lieu of and in substitution for the same, and the new or substituted Debenture
shall be in a form approved by the Trustee and shall be entitled to the benefits of this Indenture
equally with all other Debentures issued or to be issued hereunder. In the case of loss,
destruction or theft, the applicant for a substituted Debenture shall furnish to the Corporation
and to the Trustee such evidence of such loss, destruction or theft as shall be satisfactory to the
Corporation and to the Trustee in their discretion and shall also furnish such indemnity as is
reasonably satisfactory to them. The applicant for a new or substituted Debenture shall pay all
expenses incidental to the issuance of such new or substituted Debenture.

2.10 Payment Agreements for Debentures

     Notwithstanding anything contained in this Indenture to the contrary, the Corporation may
enter into an agreement with a Debentureholder or with the Person for whom such Debentureholder is
acting as nominee providing for the particulars of payment, without presentation or surrender of
the Debenture or notation of payment thereon, to such Debentureholder of the principal amount and
interest on such Debenture and all other money payable hereunder at a place, and by wire transfer
of funds or in such other manner, other than the places or the manner specified in this Indenture.
Any payment of the principal and interest on any such Debenture and other monies payable hereunder
at such other place or in such other manner pursuant to such agreement shall, notwithstanding any
other provision of this Indenture or the Debentures, be valid and binding on the Corporation, the
Trustee and all Debentureholders.

 

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2.11 Computation of Interest

     Interest on the Debentures shall be computed on the basis of a 365 day calendar year. For the
purpose of the Interest Act (Canada), in the case of a leap year, the yearly rate of interest shall
be such rate multiplied by 366 and divided by 365.

ARTICLE 3

PROVISIONS RELATING TO WITTHOLDING TAXES

     All payments to be made by the Corporation under or in connection with the Debentures shall be
made without deduction or withholding for or on account of any tax under Part XIII of the Income
Tax Act (Canada) (“Part XIII Tax”). If any such tax is required to be deducted or withheld from any
such payment, the amount of such payment shall be increased to such amount as is necessary to yield
and remit to the Holder, after provision for payment of such tax, the original amount of such
payment provided, however, that no additional amount shall be payable to the extent that either:
(i) the Holder’s country of residence provides for a reduction or credit against income tax payable
in such country to account for Part XIII Tax; or (ii) the Holder could have reduced or eliminated
Part XIII Tax by taking reasonable measures to structure its investment through another
jurisdiction. Furthermore, the Corporation undertakes to inform the Non-Canadian Resident Holders
of any amendment to Part XIII Tax.

     The Corporation shall also indemnify the Holder in respect of the delay or failure by the
Corporation to make any such payment, including penalties relating thereto or interest thereon.
These gross-up provisions shall not apply to any amounts payable as dividends, deemed dividends or
other distributions on Shares of the share capital of the Corporation or the disposition of such
Shares.

ARTICLE 4

TERMINATION OF OFFERING OR

TAKING UP OF THE REMAINDER OF THE OFFERING

4.1 Termination of the Offering

     Provided that the Corporation has received a written offer, otherwise satisfactory to the
investors investing in Debentures on the First Closing Date (collectively, the “Early Investors”),
to the effect that the Corporation can benefit from an equity offering that is, in the opinion of
the Early Investors, substantially higher than the last price paid for preferred shares of the
Corporation in December 2004 (being $1.54375 per preferred share) and upon agreement by the Holders
representing not less than 662/3% of the then aggregate outstanding principal amount of Debentures,
the Corporation may truncate the Offering at any time prior to the date which is 120 days following
the First Closing Date.

4.2 Right of Early Investors to Invest in the Remainder of the Offering

     Each of the Early Investors shall have the right, in preference and priority to any other
interested purchasers of Debentures who were not Early Investors, to invest in the

 

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remainder of the
Offering at any time during the 120 days following the First Closing Date (the “Early Investors’
Option”). In such a case, the Early Investors’ participation in the remainder of the Offering shall
be calculated proportionally to each Early Investors’ existing investment and the other provisions
of this Indenture, including, without limitation, those of Article 2 and Article 5, shall apply to
the Debentures to be issued pursuant to the exercise of the Early Investors’ Option, with the
necessary adaptations.

ARTICLE 5

CONVERSION OF DEBENTURES

5.1 Conversion Privilege of Debentures

     Subject to and upon compliance with the provisions of Article 5 of the Debentures, upon the
occurrence of a Liquidity Event, the Debentures held by Canadian Resident Holders will be
automatically convertible into fully paid and non-assessable Class G Preferred Shares and the
Debentures held by Non-Canadian Resident Holders will be automatically convertible into fully paid
and non-assessable Class H Preferred Shares, in each case at the conversion ratio and upon
compliance with the procedures set forth in Article 5 of the Debentures.

5.2 Cancellation of Debentures

     Upon delivery to the Corporation of a Debenture surrendered to the Corporation for conversion
and cancellation in accordance with Article 5 of the Debenture, the Corporation shall forthwith
notify the Trustee of such cancellation and the Trustee shall forthwith register such cancellation
in its register of Debentureholders.

ARTICLE 6

SECURITY

     As a general and continuing collateral security for the performance by the Corporation of all
its obligations under this Indenture, the Debentures outstanding from time to time and under the
Security Documents, the Corporation shall grant, in favour of the Trustee, as fondé de pouvoir
(person holding the power of attorney of the Holders), a hypothec on the universality of its
present and future movable assets. The Trustee hereby acknowledges and confirms that said hypothec
shall rank immediately after the Senior Indebtedness.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

7.1 By the Corporation

     The Corporation represents and warrants as follows:

	(a)	 	Incorporation and Status. The Corporation is duly incorporated and organized, and is validly
existing and up-to-date in the filing of all corporate and similar returns under the laws of
Canada. The Corporation is duly registered, licensed or

 

-15-

	 	 	qualified in those jurisdictions where
the Corporation currently carries on business, and is up-to-date in the filing of all
corporate and similar returns;
	 
	(b)	 	Corporate Power. The Corporation has the corporate power and capacity to own or lease its
assets and to carry on its business as the same is presently conducted and to enter into and
carry out its obligations with respect to the transactions contemplated by this Indenture;
	 
	(c)	 	Enforceability. This Indenture, the issue of the Debentures and the Security Documents have
been duly authorized, executed and delivered by the Corporation and each such document
constitutes a legal, valid and binding obligation of the Corporation enforceable in accordance
with their respective terms, subject to the usual exceptions as to bankruptcy and the
availability of equitable remedies;
	 
	(d)	 	No Contravention. Neither the entering into of this Indenture and of the Security Documents,
the issue of Debentures nor the performance by the Corporation of any of its obligations
under, or contemplated by, this Indenture and the Security Documents will contravene, breach
or result in any default under its articles, by-laws, constating documents or other
organizational documents or under any mortgage, lease, agreement, other legally binding
instrument, license, permit, statute, regulation, order, judgment, decree or law to which the
Corporation is a party or by which it may be bound;
	 
	(e)	 	Approvals and Consents. Except as provided for in the Subscription Agreement and except for
the registration of the Security Documents at all relevant registry offices where applicable
laws require such registration, no authorization, consent or approval of, or filing with or
notice to, any governmental agency, regulatory body, court or other Person is required by the
Corporation in connection with the execution, delivery or performance of this Indenture by the
Corporation or of any of the Security Documents by the Corporation or the issue of any of the
Debentures. Without limiting the generality of the foregoing or of any other provision of this
Indenture, all authorizations and exemptions required under applicable law, including from any
securities commission or other regulatory body, have been obtained by the Corporation, or the
requirements to benefit from an exemption have been complied with, in order to allow the
Corporation to issue the Debentures and the underlying Shares upon conversion thereof,
provided certain private placement filings are made together with payment of the requisite
fees to the relevant securities regulatory authorities;
	 
	(f)	 	Title to Assets. The Corporation has good and valid title to its assets charged under the
Security Documents, free and clear of all Liens other than Permitted Encumbrances and except
to the extent the failure to have such title could not reasonably be expected to result in a
material adverse effect on the Corporation.
	 
	(g)	 	Shares. The issuance and delivery of the underlying Shares to be issued on conversion of the
Debentures in accordance with the provisions of Article 5 hereof have been validly authorized
and reserved by all necessary corporate

 

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	 	 	action of the Corporation and shall, upon the
conversion in accordance with the provisions of this Indenture, be validly issued as fully
paid-up and non-assessable Shares in the capital of the Corporation;

7.2 By Trustee

     The Trustee represents and warrants to the Corporation as follows and acknowledges that the
Corporation is relying upon the following representations and warranties in connection with
execution of this Indenture:

	(a)	 	Incorporation and Status of the Trustee. The Trustee is duly incorporated and validly
existing under the laws of its jurisdiction of incorporation;
	 
	(b)	 	Corporate Power of the Trustee and Due Authorization. The Trustee has the corporate power and
capacity to enter into, and to perform its obligations under this Indenture. This Indenture
and the agreements, contracts and instruments required by this Indenture to be delivered by
the Trustee on the date hereof have been duly authorized by the Trustee and have been duly
executed and delivered by the Trustee, and shall be a valid and binding obligation of the
Trustee enforceable in accordance with their respective terms, subject to the usual exceptions
relating to bankruptcy and the availability of equitable remedies.

7.3 Survival of Covenants, Representations and Warranties

     The covenants, representations and warranties contained in this Indenture and in all
certificates and documents delivered pursuant to or contemplated by this Indenture shall survive
the execution of this Indenture and shall continue for so long as any Debenture remains
outstanding, provided, however, that no claim for breach of representation or warranty shall be
valid unless the party against whom such claim is made has been given notice thereof before the
date on which the applicable representation or warranty shall have terminated in accordance with
the foregoing.

ARTICLE 8

COVENANTS OF THE CORPORATION

8.1 General Covenants

     The Corporation hereby covenants and agrees that:

	(a)	 	It will duly and punctually pay or cause to be paid, directly to each Debentureholder, the
principal and interest, if any, on the Debentures, on the dates, at the places and in the
manner set forth in this Indenture and the Debentures;
	 
	(b)	 	It will maintain at all times its corporate existence and will carry on and conduct its
business in a proper and efficient manner;

 

-17-

	(c)	 	It will pay to the Trustee reasonable remuneration for its services hereunder and under the
Security Documents and shall repay to the Trustee on demand all reasonable expenditures or
advances incurred by the Trustee in accordance with the present Indenture (including
reasonable fees and expenses of legal counsel) with interest thereon at the same rate of
interest per annum that is applicable to the principal of the Debentures for the first
calendar year after the issuance thereof, and such monies shall be payable out of any funds in
the possession of the Trustee in priority to any Debenture.

8.2 Securities Qualification Requirements

     If any prospectus or other instrument is required to be filed with or any permission is
required to be obtained from any securities regulatory authority or any other step is required
under any federal or provincial law of Canada in respect of any securities which a Debentureholder
is entitled to receive upon conversion of the Debentures, before such conversion may properly and
legally be delivered upon the due exercise thereof, the Corporation covenants that it will take all
such action, at its expense, as is required or appropriate in the circumstances.

8.3 Financial Information

	(a)	 	The Corporation shall deliver to any Holder of Debentures holding at least $1,500,000
principal amount of Debentures:

	 	(i)	 	As soon as practicable, but in any event within thirty (30) days after the
meeting of the Corporation’s board of directors, the report of the chief financial
officer of the Corporation deposited at each said meeting; and
	 
	 	(ii)	 	As soon as practicable, but in any event within forty-five (45) days after
the end of each fiscal quarter, consolidated financial statements of the Corporation
including, the balance sheet, the statement of operations and the statement of cash
flows.

     Furthermore, the Corporation will provide each Debentureholder with all such financial reports
provided to its shareholders, irrespective of the classes of shares, on the same schedule as such
information is provided to said shareholders;

8.4 Other Covenants of the Subscription Agreement

     The Corporation shall comply with any other covenants contained in the Subscription Agreement,
as though the same had been recited herein at length, the Corporation herein acknowledging that all
representations, terms and covenants of the Subscription Agreement are essentials to the execution
of this Indenture and the purchase by any Debentureholder of the Debentures.

 

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8.5 Restriction on Financings

     The Corporation shall not obtain any bank financing or credit facility or issue any bonds,
debentures or similar debt instruments that is not a Permitted Indebtedness without the prior
written consent of each Holder of Debentures holding at least $1,500,000 principal amount of
Debentures, which consent shall not unreasonably be withheld.

ARTICLE 9

PROVISIONS APPLICABLE TO ILLUMINA

9.1 Sale of the Illumina Debenture

     Immediately after the entering into of the Corporation’s first commercial contract, the
Corporation will use its best efforts to find a purchaser for the Debenture issued to Illumina (the
“Illumina Debenture”), with a view to completing the sale of the Illumina Debenture prior to
December 31, 2006, the whole subject to Section 9.2. Upon the transfer to a third party of the
Illumina Debenture, Illumina will forfeit all of its rights under the Illumina Debenture and the
warrants to purchase Class H Preferred Shares (the “Illumina Warrants”) issued to Illumina
concurrently with the issuance of the Illumina Debenture.

9.2 Right of First Refusal

     If at any time following the date hereof, Illumina receives a bona fide offer (the “Third
Party Offer”) by a person (the “Third Party”) dealing at arm’s length with Illumina to purchase or
otherwise acquire all or any part of the Illumina Debenture for a consideration payable in full on
closing, in cash, by certified cheque or wire transfer which Illumina proposes to accept, Illumina
shall deliver a notice in writing (the “Offer”) to the Early Investors (and only to the Early
Investors), offering to sell to the Early Investors the Illumina Debenture, or the portion thereof
that is covered by the Third Party Offer and that Illumina desires to sell (the “Purchased Illumina
Debenture”). The Offer shall specify the aggregate principal amount of Purchased Illumina Debenture
and the price per $1,000 principal amount of Purchased Illumina Debenture, which shall be payable
in cash only, and shall also disclose the name of the Third Party making the Third Party Offer (or
the person who ultimately controls the Third Party, as the case may be), and shall otherwise
contain the same terms and conditions as contained in the Third Party Offer together with a copy
thereof. The Offer shall be irrevocable and shall be open for acceptance in writing by the Early
Investors for a period of ten (10) Business Days (the “Acceptance Delay”) from the date upon which
the Offer was given by Illumina to the Early Investors. If no response is received by Illumina from
any Early Investor within the Acceptance Delay, such Early Investors will be deemed to have refused
the Offer.

     If the Offer is accepted by the Early Investors, such that one or more of the Early Investors
have accepted to purchase all of the Purchased Illumina Debenture, then Illumina shall be bound to
sell, and the Early Investors who have accepted the Offer shall purchase, the Purchased Illumina
Debenture from Illumina upon the terms and

 

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conditions set out in the Offer. Each Early Investor
may, in its acceptance, set forth the aggregate principal amount of Purchased Illumina Debenture
which such Early Investor is willing to purchase pursuant to the Offer, up to the total aggregate
principal amount of Purchase Illumina Debenture being offered to all of the Early Investors.

     In the event that all of the Early Investors accept the Offer, then the Purchased Illumina
Debenture shall be allocated among the Early Investors in accordance with their respective
proportion (the “Designated Portion”) of aggregate principal amount of Debentures held out of the
aggregate principal amount of all Debentures issued to Early Investors at the First Closing Date.

     In the event that one or more of the Early Investors does not accept the Offer within the
Acceptance Delay or rejects the Offer, and those Early Investors who have accepted the Offer (in
this Section 9.2, the “Purchasers”) have indicated in their notices of acceptance that the total
aggregate principal amount of Purchased Illumina Debenture that they are willing to acquire, in the
aggregate, is equal to or exceeds the total aggregate principal amount of the Purchased Illumina
Debenture available for sale pursuant to the Offer, such Purchased Illumina Debenture shall be
allocated among the Purchasers as follows:

	(i)	 	each Purchaser shall be entitled, as an initial allocation, to acquire its Designated
Proportion of the Purchased Illumina Debenture as if all Early Investors had accepted the
Offer; and
	 
	(ii)	 	any principal amount of Purchased Illumina Debenture that remains unallocated shall be
allocated among the Purchasers as nearly as possible in proportion to their Designated
Portion, but so that no such Purchaser shall be bound to take a greater principal amount of
Purchased Illumina Debenture than the maximum number set out in its acceptance of the Offer.

     In the event that the Early Investors have accepted to purchase less than all of the Purchased
Illumina Debenture pursuant to the foregoing, or if the Early Investors do not elect to accept the
Offer within the Acceptance Delay, then Illumina shall be entitled to sell the Purchased Illumina
Debenture to the Third Party pursuant to the Third Party Offer.

     If the provisions of this Section 9.2 are applicable, the Board of Directors of the
Corporation, before consenting to the transfer of the Purchased Illumina Debenture to the Third
Party, shall be entitled to require reasonable proof (to be limited to copies of all documents
delivered in connection with such transfer or otherwise contemplated by this Section 9.2) that the
sale took place in accordance with the foregoing and the Board of Directors of the Corporation
shall refuse to consent to the transfer of the Purchased Illumina Debenture which may have been
sold otherwise than in accordance with the provisions of this Section 9.2.

     Upon any transfer of the Purchased Illumina Debenture or a portion thereof pursuant to this
Section 9.2 (including pursuant to the Third Party Offer or pursuant to the Offer), the transferee
of the Purchased Illumina Debenture shall be entitled to receive

 

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from Illumina the number of
Illumina Warrants to which such transferee would otherwise have been entitled pursuant to the
Subscription Agreement if such transferee had initially subscribed at the First Closing Date for
the aggregate principal amount of Purchased Illumina Debenture transferred to such transferee, with
no fractional Illumina Warrant being transferable.

9.3 Repurchase of the Illumina Debenture by the Corporation

     In the event that no purchaser has been found for the Illumina Debenture by December 15, 2006
or that purchasers have not offered to purchase the full amount of the Illumina Debenture, and that
the Corporation’s cash flow then permits it to do so, the Corporation may, at its option (which
option shall not be unreasonably declined), repurchase the Illumina Debenture at face value or
repurchase the portion not purchased by the purchasers, together with accrued interest thereon, in
which case the Illumina Warrants will automatically and immediately be cancelled. However, such
option may only be exercised by the Corporation once the Early Investors have been given the
opportunity to exercise their right of first refusal pursuant to Section 9.2 above and that they
have declined to exercise such right.

9.4 Rights of Illumina

     In any event contemplated by Sections 9.1 to 9.3 above, Illumina shall have the right to
either (i) accept the transfer or repurchase of the Illumina Debenture, as the case may be; or (ii)
refuse the same and remain the holder of the Illumina Debenture and the Illumina Warrants.

ARTICLE 10

DEFAULT AND ENFORCEMENT

10.1 Events of Default

     There shall be a default hereunder upon the occurrence of any of the following events (herein
called an “Event of Default”):

	(a)	 	if the Corporation fails to repay the principal of any Debenture when the same becomes due;
	 
	(b)	 	if the Corporation fails to pay interest as required pursuant to any Debenture on the
principal of such Debenture;
	 
	(c)	 	if the Corporation contracts any Indebtedness that is or purports to be senior to the
Permitted Indebtedness, without the prior consent of the Debentureholders expressed by
Ordinary Debentureholder Instrument;
	 
	(d)	 	if the Corporation assigns or grants any security or Lien, other than a Permitted
Encumbrance, in respect of its Intellectual Property or any of its other assets in favour of
any third party (other than in the ordinary course of its business), without the prior consent
of the Debentureholders expressed by Ordinary

 

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	 	 	Debentureholder Instrument, which consent shall
not be unreasonably withheld in connection with the licensing of its Intellectual Property
rights to a third party for valuable consideration;
	 
	(e)	 	if any proceedings are instituted by or against the Corporation seeking its liquidation,
dissolution or winding-up;
	 
	(f)	 	if the Corporation files a proposal or makes a general assignment of its property for the
benefit of its creditors or otherwise acknowledges its insolvency;
	 
	(g)	 	if a petition in bankruptcy is filed against the Corporation and such petition is not stayed
or dismissed within thirty (30) days or a trustee or receiver is appointed for the Corporation
pursuant to applicable legislation relating to insolvent persons or an application is filed by
or against the Corporation pursuant to the Companies’ Creditors Arrangement Act (Canada);
	 
	(h)	 	if a seizure (unless such seizure is validly contested) is made or a judgment is executed
against all or a substantial part of the Corporation’s property;
	 
	(i)	 	if the Corporation ceases to be in legal existence or ceases to operate in the ordinary
course of its business; or
	 
	(j)	 	if the Corporation fails to fulfill or comply with the conditions and undertakings set forth
in the Subscription Agreement or any other material undertaking or condition set forth in this
Indenture or the Debentures and such failure to comply continues for a period of fifteen (15)
days following the Corporation’s receipt of a notice to that effect from the Trustee.

10.2 Acceleration of Maturity upon Default

     Upon the occurrence of an Event of Default which is continuing, the Trustee may, in addition
to all of its other rights and recourses, and shall, in the event of a Major Event of Default, upon
the request of Holders which hold, individually or in the aggregate, Debentures representing an
aggregate principal amount of at least $3,500,000 at the time of the Major Event of Default or, in
the event of any Event of Default, pursuant to a Debentureholder Instrument, send a written notice
to the Corporation requiring the redemption of the principal amount of the outstanding Debentures
and the premium thereon, if any, the payment of unpaid interest accrued on such principal amount
and any interest on unpaid interest and the payment of any amount owed pursuant to this Indenture.
The Corporation shall forthwith pay these amounts to the Trustee on behalf of the Debentureholders.

10.3 Waiver of Default

     The Holders, pursuant to a Debentureholder Instrument, shall have the right to waive any
default or Event of Default, or may cancel any instructions made to the Trustee pursuant to Section
10.2 above.

 

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10.4 Enforcement of Payment and of Security

     Subject to the waiver referred to in Section 10.3, the Trustee may, in its discretion, and
shall, pursuant to a Debentureholder Instrument and upon receiving sufficient funds and being
indemnified to its reasonable satisfaction against all costs, expenses and liabilities to be
incurred, proceed in its name as fondé de pouvoir to obtain or enforce payment of the Debentures
and other monies owing hereunder and realize the rights resulting from the Security Documents or by
law.

10.5 Application of Monies

     Except for any prior claim to the extent required by law, any money received by the Trustee
from any enforcement of the provisions hereof shall forthwith be paid as follows:

	(a)	 	Firstly, to pay or reimburse to the Trustee for the costs, charges, expenses and advances
incurred in the enforcement of the rights hereunder or under the Security Documents;
	 
	(b)	 	Secondly, in payment of accrued and unpaid interest owing on the Debentures and on other sums
due hereunder, on a pro rata basis;
	 
	(c)	 	Thirdly, in repayment of the principal amount of the outstanding Debentures, on a pro rata
basis;
	 
	(d)	 	Fourthly, the surplus, if any, to the Corporation or as it directs.

10.6 Remedies Cumulative

     All rights and remedies provided for hereunder and at law are cumulative.

ARTICLE 11

ACTIONS BY DEBENTUREHOLDERS AND TRUSTEE

11.1 Trustee not Required to Possess Debentures

     All rights of action under this Indenture and the Security Documents may be enforced by the
Trustee without the possession of any of the Debentures or the production thereof at any trial or
other proceedings relative thereto.

11.2 Trustee May Institute All Proceedings

     The Trustee shall be entitled and empowered, either in its own name or as agent or mandatary
of the Debentureholders, 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 claim of the Trustee and of the Debentureholders allowed in any insolvency,
bankruptcy, liquidation or other judicial proceedings relating to the Corporation or its creditors
or relating to or affecting its property. The Trustee is hereby irrevocably appointed (and the
successive respective

 

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Holders of a Debenture by taking and holding the same shall be conclusively
deemed to have so appointed the Trustee) the true and lawful agent or mandatary of the respective
Debentureholders with authority to make and file, in the respective names of the Debentureholders
or on behalf of the Debentureholders as a class, subject to deduction from any such claims of the
amounts of any claims filed by any of the Debentureholders 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
Debentureholders, as may be necessary or advisable in the opinion of the Trustee, in order to have
the respective claims of the Trustee and of the Debentureholders 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 nothing contained in this Indenture shall be deemed to give to the Trustee,
unless so authorized by a Debentureholder Instrument, any right to accept or consent to any plan or
reorganization or otherwise by action of any character in such proceeding to waive or change in any
way any right of any Debentureholder.

     The Trustee 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.

     Any such suit or proceeding instituted by the Trustee may be brought in the name of the
Trustee as agent or mandatary, and any recovery of judgment shall be for the rateable benefit of
the Debentureholders subject to the provisions of this Indenture. In any proceeding brought by the
Trustee (and 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 Trustee shall be a
party) the Trustee shall have the right to represent all the Debentureholders, and it shall not be
necessary to make any Debentureholders parties to any such proceeding.

ARTICLE 12

ADMINISTRATION OF THE MANDATE

12.1 Appointment of Trustee as fondé de pouvoir

     The Corporation hereby irrevocably appoints the Trustee and the Trustee irrevocably accepts,
to act as fondé de pouvoir (“person holding the power of attorney”) as contemplated in Article 2692
of the Civil Code of Québec, on behalf of the present and future Debentureholders, to the extent
necessary or desirable for the purpose of receiving, creating, holding or enforcing any right,
hypothec or security interest created under the Security Documents and hereafter each
Debentureholder, by receiving and accepting a Debenture, shall be deemed to accept and confirm such
appointment of the Trustee as fondé de pouvoir.

 

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12.2 Acceptance

     The Debentureholders hereby empower the Trustee to represent them and all future Holders of
Debentures in the performance of all juridical acts provided for herein and the Trustee, by its
acceptance, binds itself to exercise the powers above-mentioned and agrees to perform the same upon
the terms and conditions herein set forth.

12.3 Sufficiency of Execution of Instruments

     Any order, request, direction, certificate or other instrument to be made or given by the
Corporation under any of the provisions hereof shall, unless otherwise provided, be deemed
sufficiently executed if executed by any officer of the Corporation. The Trustee may receive a
certificate signed by the President, the Secretary or a Vice-President of the Corporation as
sufficient evidence of the adoption of any resolution of the directors or of the shareholders of
the Corporation.

12.4 Trustee May Require Indemnity

     Subject to Section 13.1 hereof, the Trustee shall not be required to take any measure to
enforce this Indenture or any covenant herein contained until furnished with funds for such purpose
or after having been indemnified to its reasonable satisfaction.

12.5 Trustee May Employ Advisors

     The Trustee may employ or retain such agents, counsel and other advisors as it may reasonably
require for the proper discharge of its duties hereunder and may pay reasonable remuneration for
all services performed for it.

12.6 Trustee May Act on Opinion or Advice

     The Trustee may, in relation to this Indenture, act on the opinion or advice of, or on
information obtained from any counsel, notary, valuator, surveyor, engineer, broker, auctioneer,
accountant or other expert, whether retained by the Trustee or by the Corporation or otherwise.

12.7 Trustee May Rely upon Declarations

     In the exercise of its rights and duties, the Trustee may, if it is acting in good faith,
rely, as to the truth of the statements and accuracy of the opinions expressed therein, upon a
statutory declaration, opinion, report or certificate furnished to the Trustee under a provision
hereof or at its request where the Trustee examines the same and determines that it complies with
the applicable requirement, if any, of this Indenture.

12.8 Corporation Shall Provide Evidence of Compliance

     The Corporation shall provide forthwith to the Trustee evidence of compliance with the
conditions precedent provided for in this Indenture relating to the issue, certification and
delivery of Debentures hereunder, the satisfaction and discharge of this

 

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Indenture or the taking of
any other action to be taken by the Trustee at the request of or on the application of the
Corporation. Such evidence shall consist of:

	(a)	 	a statutory declaration or a certificate made by any officer of the Corporation stating that
such conditions precedent have been complied with in accordance with the terms of this
Indenture; and
	 
	(b)	 	in the case of conditions precedent, the compliance with which are by this Indenture subject
to review or examination by Counsel to the Corporation, an opinion of Counsel to the
Corporation that such conditions precedent have been complied with in accordance with the
terms of this Indenture.

     Whenever such evidence relates to a matter other than the certification and delivery of
Debentures and the satisfaction and discharge of this Indenture, such evidence may consist of, or
otherwise be in accordance with, a report or opinion of any solicitor, auditor, accountant,
engineer or appraiser or any other Person whose qualifications give authority to a statement made
by him, but if such report or opinion is furnished by a director, officer or employee of the
Corporation, it shall be in the form of a statutory declaration or a certificate.

12.9 Trustee May Act on Instruments Believed Genuine

     The Trustee shall not be bound to act in accordance with any direction or request of the
Corporation or of its directors until a duly authenticated copy of the instrument or resolution
containing such direction or request shall have been delivered to the Trustee, and the Trustee
shall be empowered to act upon any such copy purporting to be authenticated and believed by the
Trustee to be genuine.

12.10 No Person Dealing with Trustee Need Enquire

     No person dealing with the Trustee shall be concerned to enquire whether the powers that the
Trustee is purporting to exercise have become exercisable, or whether any money remains due upon
the Debentures or to see to the application of any money paid to the Trustee.

12.11 Investment of Funds

     Any money held by the Trustee or other registrar, which under this Indenture may be invested,
shall be invested and reinvested as directed by the Corporation to the Trustee in its name or under
its control in any securities in which presumed sound investments are made under the laws of the
Province of Québec. Pending such investment, such money shall be placed by the Trustee on deposit
at interest at the then current rate in a Canadian bank or trust company.

 

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ARTICLE 13

CONCERNING THE TRUSTEE

13.1 Duty of Trustee

     In the exercise of the powers, rights, duties and obligations prescribed or conferred by the
terms of this Indenture, the Trustee shall act honestly and in good faith with a view to the best
interests of the Debentureholders and shall exercise that degree of care, diligence and skill that
a reasonably prudent person would exercise in comparable circumstances.

13.2 Resignation of Trustee and Appointment of New Trustee

     The Trustee may resign and be discharged from all further duties and liabilities hereunder by
giving to the Corporation not less than sixty (60) days’ notice in writing or such shorter notice
as the Corporation may accept as sufficient. The Debentureholders may at any time, pursuant to a
Debentureholder Instrument, remove the Trustee and appoint a new trustee. If at any time a material
conflict of interest in the Trustee’s role hereunder arises, the Trustee shall, within ninety (90)
days after ascertaining that it has such a conflict, either eliminate such conflict or resign in
the manner and with the effect specified in this Section 13.2. In the event of the Trustee
resigning or being removed pursuant to a Debentureholder Instrument or being dissolved, becoming
bankrupt, going into liquidation or otherwise becoming incapable of acting hereunder, the
Corporation shall forthwith appoint a new trustee unless a new trustee has already been appointed
by the Debentureholders; failing such appointment by the Corporation, the retiring Trustee (at the
Corporation’s expense) or any Debentureholder may petition any court of competent jurisdiction for
the appointment of a new trustee, but any new trustee so appointed by the Corporation or by the
court shall be subject to removal as aforesaid by the Debentureholders. Any new trustee appointed
under this Section shall be a corporation authorized to carry on the business of a trust company in
the Province of Québec. On any new appointment, the new trustee shall be vested with the same
powers, rights, duties and obligations as if it had been originally named herein as trustee.

     Any corporation into which the Trustee may be merged or with which it may be consolidated or
amalgamated or any corporation resulting from any merger, consolidation or amalgamation to which
the Trustee shall be a party shall be the successor trustee under this Indenture without the
execution of any instrument or any further act.

13.3 Trustee May Deal in Debentures

     Subject to Section 13.6 hereof, the Trustee may buy, lend upon and deal in the Debentures
either with the Corporation or otherwise, and generally contract and enter into financial
transactions with the Corporation or otherwise, without being liable to account for any profit made
thereby.

 

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13.4 Trustee Not Required to Give Security

     The Trustee shall not be required to give any bond or security with respect of the execution
of its duties or conduct or administration hereunder.

13.5 Protection of Trustee

     By way of supplement to the provisions of any law for the time being relating to trustees, it
is expressly declared and agreed as follows:

	(a)	 	the Trustee shall not be liable for or by reason of any statements of fact or recitals in
this Indenture or in the Debentures (except the representation contained in Section 13.6
hereof and in the certificate of the Trustee on the Debentures) or required to verify the
same, but all such statements or recitals are and shall be deemed to be made by the
Corporation;
	 
	(b)	 	nothing herein contained shall impose any obligation on the Trustee to see or to require
evidence of registration or filing (or renewals thereof) of this Indenture or any instrument
ancillary or supplemental hereto or thereto;
	 
	(c)	 	the Trustee shall not be bound to give any notice of the execution hereof;
	 
	(d)	 	the Trustee shall not incur any liability or responsibility whatever or be in any way
responsible for the consequence of any breach on the part of the Corporation of any of the
covenants contained herein or of any act of the agents or servants of the Corporation; and
	 
	(e)	 	in addition to any right of indemnity given to the Trustee by law, the Corporation shall at
all times indemnify and save harmless the Trustee against all liabilities, losses, damages,
actions, proceedings, costs, claims, expenses and demands in respect of any matter or thing
done or omitted by the Trustee (save only in the event of gross negligence or intentional
fault of the Trustee) in any way related to this Indenture.

13.6 Conflict of Interest

     The Trustee represents to the Corporation that, at the time of the execution and delivery
hereof, no material conflict of interest exists in the Trustee’s role hereunder and agrees that in
the event of a material conflict of interest arising hereafter it will, within ninety (90) days
after ascertaining that it has such material conflict of interest, either eliminate the same or
resign its duties hereunder. If any such material conflict exists or hereafter shall exist, the
validity and enforceability of this Indenture and the Debentures shall not be affected in any
manner whatsoever by reason thereof.

 

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ARTICLE 14

SUPPLEMENTAL INDENTURES

14.1 Supplemental Indentures

     From time to time the Corporation and the Trustee may, without any further approval or consent
of the Debentureholders, subject to the provisions of this Indenture, and they shall, when so
directed by the provisions of 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)	 	adding to the covenants of the Corporation herein contained for the protection of the
Debentureholders or providing for events of default in addition to those herein specified;
	 
	(b)	 	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 hereto or in the form of the Debentures which do not affect the substance
thereof and which, in the opinion of the Trustee, may be expedient to make, provided that the
Trustee shall be of the opinion that such provisions and modifications will not be prejudicial
to the interests of the Debentureholders;
	 
	(c)	 	evidencing the succession, or successive successions of other corporations to the Corporation
and the covenants of and obligations assumed by any such successor in accordance with the
provisions of this Indenture; and
	 
	(d)	 	for any other purpose not inconsistent with the terms of this Indenture provided that, in the
opinion of the Trustee, the rights of the Trustee and of the Debentureholders are not
materially prejudiced thereby.

14.2 Typographical Errors

     The Corporation and the Trustee may correct any typographical or other manifest error in this
Indenture, provided that in the opinion of the Trustee such corrections will not prejudice the
rights of the Trustee or of the Debentureholders hereunder, and may execute all such documents as
may be necessary to correct such errors.

ARTICLE 15

SATISFACTION AND DISCHARGE

15.1 Discharge

     The Trustee shall, at the request and at the cost of the Corporation, release and discharge
this Indenture and execute and deliver such instruments as it shall be advised by Counsel to the
Corporation are requisite for that purpose and to release the

 

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Corporation from its covenants herein
contained (other than the provisions relating to the indemnification of the Trustee), upon proof
being given to the reasonable satisfaction of the Trustee that the principal of all Debentures and
interest thereon (including interest on amounts in default, if any) and all other monies payable
hereunder have been paid or satisfied, or that all the outstanding Debentures having matured, or
having been duly called for redemption pursuant to Section 10.2 and payment thereof and of all
other monies payable hereunder have been duly and effectually provided for.

15.2 Money May be Set Aside For Holders

     In case the Holder of any Debenture shall fail to surrender his Debenture on or after the date
on which the same shall be due and payable, at maturity, or otherwise and the principal or interest
then payable hereunder in respect thereof shall have been duly provided for by the Corporation by
deposit with the paying agent for the time being or the Trustee or other registrar, interest, if
any, accruing in respect thereof shall cease to accrue, from such date, and such money, on the
direction of the Corporation, may be set aside in trust for such holder in a Canadian bank, or the
Trustee may itself so set aside such money and such setting aside shall for all purposes be deemed
a payment to the Debentureholder of the money payable in respect thereof and the Holder shall have
no other right except to receive payment of the money so set aside upon surrender of such
Debenture.

15.3 Prescription

     Notwithstanding any other provision of this Indenture and subject to applicable law, the
Debentures will become void unless presented for payment within three (3) years from the Maturity
Date.

ARTICLE 16

GENERAL MATTERS

16.1 Assignment

     The Debentureholders may not assign the Debentures without (i) obtaining the prior written
consent of the Corporation (which shall not be unreasonably withheld); and (ii) complying with the
right of first refusal set forth in the Third Amended and Restated Shareholders Agreement of the
Corporation dated as of March 27, 2006 (the “Shareholders Agreement”) as if the Debentures were
“Shares” for the purposes of the provisions of the Shareholders Agreement. Furthermore, the Shares
issuable upon conversion under this Indenture shall be subject to the Shareholders Agreement or any
other agreement among all the shareholders of the Corporation governing the affairs of the
Corporation. Notwithstanding the foregoing, the transfer of the Illumina Debenture shall be
governed by the provisions of Article 9 hereof for as long as the provisions of such Article will
apply to the Illumina Debenture.

 

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16.2 Notices

     Any notice or other communication required or permitted to be given hereunder shall be in
writing, and shall be given by facsimile or by hand-delivery, as hereinafter provided. Any such
notice or other communication, if sent by facsimile shall be deemed to have been received on the
Business Day following the sending, or if delivered by hand-delivery, shall be deemed to have been
received at the time it is delivered to the applicable address noted below. Notice of a change of
address shall also be governed by this Section. Notices and other communications shall be addressed
as follows:

	(a)	 	if to the Debentureholders, at their addresses shown on the register kept by the Trustee
pursuant to Section 2.7:
	 
	(b)	 	if to the Corporation:
	 
	 	 	880 McCaffrey

St. Laurent, Québec H4T 2C7
	 
	 	 	Attention of: Claude Lambert, Vice President and Chief Financial Officer

Facsimile: (514) 270-5291
	 
	 	 	with a copy to:
	 
	 	 	Stikeman Elliott LLP

1155 René-Lévesque Boulevard West

Montreal, Québec H3B 3V2
	 
	 	 	Attention of: Franziska Ruf

Facsimile: (514) 397-3222
	 
	(c)	 	if to the Trustee:
	 
	 	 	Computershare Trust Company of Canada

1500 University Street, Suite 700

Montreal, Québec H3A 3S8
	 
	 	 	Attention of: Manager, Corporate Trust

Facsimile: (514) 982-7677

16.3 Time of Essence

     Time is of the essence of this Indenture.

16.4 Further Assurances

     Each of the parties shall promptly do, make, execute, deliver, or cause to be done, made,
executed or delivered, all such further acts, documents and things as the other party hereto may
reasonably require from time to time for the purpose of giving effect to

 

-31-

this Indenture and shall
use reasonable efforts and take all such steps as may reasonably be within its power to implement,
to their full extent, the provisions of this Indenture.

16.5 Counterparts

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

[SIGNATURE PAGE FOLLOWS]

 

 

     IN WITNESS WHEREOF the parties hereto have executed this
Indenture.

	 	 	 	 	 
	GENIZON BIOSCIENCES INC.	 	 
	 
	 	 	 	 
	Per:

	 	(signed)	 	 
	 

	 	 	 	 
	 

	 	Duly Authorized Officer	 	 
	 
	 	 	 	 
	COMPUTERSHARE TRUST COMPANY OF CANADA	 	 
	 
	 	 	 	 
	Per:

	 	(signed)	 	 
	 

	 	 	 	 
	 

	 	Duly Authorized Officer	 	 
	 
	 	 	 	 
	Per:

	 	(signed)	 	 
	 

	 	 	 	 
	 

	 	Duly Authorized Officer	 	 

INTERVENTION

The undersigned hereby intervenes to the present Secured Convertible Debenture Indenture to
acknowledge that it has taken cognizance of the foregoing and accept all of the terms and
provisions thereof applicable to it.

	 	 	 	 	 
	ILLUMINA, INC.	 	 
	 
	 	 	 	 
	Per:

	 	(signed)	 	 
	 

	 	 	 	 
	 

	 	Duly Authorized Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00103-of-00352.parquet"}]]