Document:

Exhibit 4.15

 

Execution Version SHARE  SALE AGREEMENT between DENSELIGHT SEMICONDUCTOR TECHNOLOGY (SHANGHAI)  CO.  LTD.  as Buyer and POET TECHNOLOGIES, INC. as Seller with  respect  to the  acquisition of   all of the  shares in DENSELIGHT SEMICONDUCTORS PTE LTD Dated as of  August 20, 2019

     

     

    

 - II - C O N T E N TS C L A U S E 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. INTERPRETATION...........................................................................................................  4 CONDITIONS   .................................................................................................................. 9 SALE   AND  PURCHASE................................................................................................... 11 PAYMENTS ................................................................................................................... 11 CLOSING   ...................................................................................................................... 12 REIMBURSEMENTS ...................................................................................................... 17 WARRANTIES AND UNDERTAKINGS OF THE BUYER .................................................... 18 WARRANTIES OF THE SELLER ...................................................................................... 20 LIMITATIONS  ON   CLAIMS ............................................................................................ 21 TAX   COVENANT ........................................................................................................... 22 INDEMNITIES  ............................................................................................................... 23 FAIR  RESTRAINTS .........................................................................................................  23   OPTICAL INTERPOSER PRODUCT  CARVE - OUT  AND DENSELIGHT IPR .......................... 24 CONFIDENTIALITY AND ANNOUNCEMENTS ................................................................  25   FURTHER  ASSURANCE ................................................................................................. 26 ASSIGNMENT ............................................................................................................... 27 ENTIRE  AGREEMENT.................................................................................................... 27 VARIATION AND WAIVER ............................................................................................  27 COSTS   .......................................................................................................................... 27 NOTICES ..................................................................................................................... .. 28 SEVERANCE .................................................................................................................. 30 AGREEMENT SURVIVES  CLOSING  ................................................................................ 30 SUCCESSORS ................................................................................................................ 30 COPIES OF AGREEMENT ..............................................................................................  30 RIGHTS AND REMEDIES ...............................................................................................   30 LANGUAGE ..................................................................................................................  30   GOVERNING LAW  AND  JURISDICTION ......................................................................... 31 DEFAULT  INTEREST ...................................................................................................... 31 FORCE   MAJEURE.......................................................................................................... 31 SCHEDULES S CHEDULE 1 – D ENSELIGHT I NFORMATION .......................................................................................... 33 S CHEDULE 2 – C ONDITIONS .............................................................................................................. 35 S CHEDULE 3 – C ONDUCT BETWEEN S IGNING AND C LOSING .................................................................... 39 S CHEDULE 4 – S ELLER ’ S W ARRANTIES ................................................................................................ 41 S CHEDULE 5 – I NTELLECTUAL P ROPERTY R IGHTS ................................................................................... 58 S CHEDULE 6 – P ARTICULARS OF THE P ROPERTIES .................................................................................. 64 S CHEDULE 7 – T AX C OVENANT .......................................................................................................... 65 S CHEDULE 8 – C APITAL E QUIPMENT , I NSTALLATIONS AND I MPROVEMENTS ............................................... 69 S CHEDULE 9 – P AYMENT D ETAILS ...................................................................................................... 70

     

     

    

3 SHARE  SALE AGREEMENT This SHARE SALE AGREEMENT, dated as of August 20 , 2019 (“ Agreement ”), is made between : 1. POET Technologies, Inc . , a company organised under the laws of Ontario, Canada with its principal executive offices at 120 Eglinton Avenue East, Suite 1107 Toronto ON M 4 P 1 E 2 , Canada (“ Seller ”) ; and 2. DenseLight Semiconductor Technology (Shanghai) Co . Ltd . , a company organised under the laws of the People’s Republic of China (“ PRC ”), with its principal executive offices at Room 368 , Section 302 , No . 211 Fute North Road, China (Shanghai) Pilot Free Trade Zone, Shanghai (“ Buyer ”), each a " Party " and jointly, the “ Parties ” . Capitalised terms used herein shall have the respective meanings assigned to such terms in the text of this Agreement or in Section 1 . 1 . RECITALS: (A) WHEREAS, the Seller owns all of the issued and outstanding ordinary shares (“ Sale Shares ”) of Denselight Semiconductors Pte Ltd (being 135 , 042 ordinary shares outstanding as at the date hereof, which number may increase if the Seller undertakes an Intercompany Loan Capitalisation as to be notified to the Buyer on each day of such increase), a company duly incorporated and registered under the laws of Singapore with UEN No . 200004082 G with its registered office at 6 Changi North Street 2 , Singapore 498831 (“ Denselight ”) . (B) WHEREAS, the Sale Shares constitute all the equity interest in Denselight, including all issued and outstanding shares, stock options and other equity - linked securities representing one hundred percent ( 100 % ) equity ownership of Denselight . (C) WHEREAS, in connection with the Transaction, the Parties have also agreed to procure the entry into the Ancillary Agreements . (D) WHEREAS, Seller wishes to sell the Sale Shares to Buyer, and Buyer wishes to purchase the Sale Shares from Seller, on the terms and conditions set forth in this Agreement .

     

     

    

4 NOW, THEREFORE,  the Parties  agree  as follows: A GREED TERMS 1. I NTERPRETATION The definitions and rules of interpretation in this Clause apply in this Agreement . 1 . 1 Definitions : Accounts : the audited financial statements of Denselight as of the Accounts Date comprising the individual accounts of Denselight, including the balance sheet, profit and loss account together with the notes on them, the cash flow statement and the auditor's and directors' reports . ACRA : Accounting and Corporate Regulatory Authority of Singapore . Accounts Date : 31 st December, 2018 . Ancillary Agreements : collectively, (i) the Preferred Supply Agreement ; (ii) the Strategic Cooperation Agreement ; and any and all other ancillary agreements hereto in connection with the Transaction herein . Business : the business of Denselight namely the design, manufacture, and delivery of leading photonic optical light source products and solutions to the communications, medical, instrumentations, industrial, defence, and security industries . Business Day : a day other than a Saturday, Sunday or gazetted public holiday in Singapore, Beijing, PRC and Ontario, Canada when banks are open for business . Buyer’s Warranties : shall mean the warranties as set out in Clause 7 and elsewhere in this Agreement given by the Buyer . Claim : a claim for any breach of this Agreement, excluding any claim under the Tax Covenant and Tax Warranties . Closing : the closing of the sale and purchase of the Sale Shares in accordance with this Agreement . Closing Agenda : a document, in agreed form, identifying the documents to be delivered by the Buyer and Seller at Closing and the business to be conducted at board meetings of Denselight held at Closing . Closing Date : has the meaning given in Clause 5 . 2 , subject to such extension as may be permitted pursuant to Clause 5 . 8 (b) , Clause 5 . 9 (b) or Clause 29 . Conditions : the conditions to Closing, being the matters set out in Schedule 2 . Consideration : the consideration for the Sale Shares to be paid by the Buyer in accordance with Clause 4 , comprising the Purchase Price and the Earn - Out Payment . Control : in relation to a body corporate, the power of a person to secure that the affairs of the body corporate are conducted in accordance with the wishes of that person either : (a) by  means of  the holding  of  shares,  or  the possession  of voting  power, in or   in relation to  that or any  other  body  corporate; or

     

     

    

5 (b) by virtue of any powers conferred by the constitutional or corporate documents, or any other document, regulating that or any other body corporate ; and a Change of Control occurs if a person who controls any corporate body ceases to do so or if another person acquires control of it . Dataroom : means the electronic dataroom which was made accessible to the Buyer for the purpose of due diligence . Denselight : Denselight Semiconductors Pte Ltd, a company duly incorporated and registered under the laws of Singapore with company number 200004082 G with its registered office at 6 Changi North Street 2 , 498831 , Singapore . Director : each person who is a director of Denselight, as set out in Schedule 1 . Disclosed : The following are deemed to be disclosed : (a) all matters and documents contained in the Dataroom (copies of the documents in the Dataroom which are saved in a suitable memory device and delivered to the Buyer within 7 Business Days after the date of this Agreement) ; (b) any matter which would be disclosed as a result of an inspection of the statutory registers and books and minute books of Denselight ; (c) any matters, information or documents available at the public registries which are available for public inspection, including : (ii) (iii ) (i) all information and all documents available for public inspection or in respect of which a search may be made at the Registry of Trade Marks in Singapore ; all information and all documents available for public inspection or in respect of which a search may be made on the records maintained by ACRA in Singapore ; and composite litigation and insolvency searches on the Singapore Judiciary's Integrated Electronic Litigation System ; (d) any matters contained in the current constitution of Denselight ; and (e) any matters disclosed in the Disclosure Letter (if any), in each case if and only to the extent to which such matter has been fairly disclosed in good faith with such particulars as would enable the Buyer to identify the nature and scope of such matter and to make a reasonably informed assessment of such matter . Disclosure  Letter:  Letter(s)  containing  factual disclosure referred  to  in  this   Agreement and  specific disclosures against Warranties. Earn - out Payment:  the  sum  to be paid by  the  Buyer  in  accordance with  Clause  4.2 .   Earn - out Revenues:  has  the meaning  set  out in  Clause 4.2 . Encumbrance : any interest or equity of any person (including any right to acquire, option or right of pre - emption) or any mortgage, charge, pledge, lien, assignment, hypothecation, security interest, title retention or any other security agreement or arrangement .

     

     

    

6 Fundamental Warranties : Warranties of the Seller made in Schedule 4 , Part 1 , paragraphs 1 ( Power to Sell Denselight ) and 2 ( Shares in Denselight ) . Governmental Authority : any supranational, national, federal, state, municipal or local court, administrative body or other governmental or quasi - governmental entity or authority, or any securities exchange, wherever located . Group : in relation to a company (wherever incorporated), that company, any company of which it is a Subsidiary from time to time (its holding company) and any other Subsidiaries from time to time of that company or its holding company . Each company in a Group is a member of the Group . Intellectual Property Rights (IPR) : has the meaning given in Schedule 4 , Part 1 , paragraph 16 . 1 . Intercompany Loan Capitalisation : has the meaning given in Schedule 2 , Part A, paragraph 8 . Insolvency Event : occurs in relation to any person when : (a) it is  unable to pay  its  debts  as  they fall due  or  it  suspends payments due to   its creditors  (including  any class of  creditors)  or all  its liabilities exceed  all its   assets and  such person fails  to  rectify  the  same within  three months of the   occurrence of  such  event; or (b) (i)  an  order  is  granted, (ii)  a  petition  or  application  is  presented  or filed with any  court  of  competent jurisdiction  or  (iii)  a  resolution  is  passed for: (x) ( y) (z) it to  be wound - up; any  arrangement with its creditors  or any  group  of  them under   which  such creditors  are  to  receive less than the  full amounts due to   them; or the  appointment  of a  liquidator, receiver, administrative receiver,   administrator, judicial manager, compulsory  manager,  trustee,   supervisor  or other  similar  or  analogous officer  or  official  to  be   appointed over it or any of its assets,  business  or undertaking. Interim Period : the period from (and including) the date of this Agreement up to (and including) the Closing Date or, if earlier, the termination of this Agreement in accordance with its terms . IRAS : Inland Revenue Authority of Singapore . Losses : any and all damages, losses, liabilities, fines, penalties, costs, charges and expenses (including without limitation all interest paid in respect of any of the foregoing) but excluding special, indirect, incidental or consequential loss or damage of any kind . Management Accounts : the unaudited consolidated balance sheet, the unaudited consolidated profit and loss account and the unaudited cash flow statements of Denselight (including any notes on them) for the first half of 2019 (period of 6 months ended 30 June 2019 ) . Material Contract : has the meaning given in Schedule 4 , Part 1 , paragraph 11 . 1 .

     

     

    

7 PRC : means the People’s Republic of China, excluding, for the purpose of this Agreement only, the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan . Preferred Supply Agreement : means the Preferred Supply Agreement between the Seller and Denselight dated on or about the date hereof, or on a date otherwise agreed between the Parties . Properties : has the meaning given in Schedule 4 , Part 1 , paragraph 18 . 1 . Purchase Price : the sum to be paid by the Buyer in accordance with Clause 4 . 1 . Sale Shares : the shares as defined in the first recital, representing 100 % of the equity ownership of Denselight immediately preceding the Closing Date . SGD, S $ or other customary abbreviations thereof : Singapore dollars, the lawful currency of Singapore . Specified Employees : such employees as specified in writing in a list to be provided by the Buyer to the Seller within 7 Business Days after the date of this Agreement . Strategic Cooperation Agreement : means the Strategic Cooperation Agreement between the Seller and Denselight dated on or about the date hereof, or on a date otherwise agreed between the Parties . Subsidiary : in relation to a company wherever incorporated (a holding company), any company in which the holding company (or persons acting on its behalf) directly or indirectly holds or controls either : (a) a majority of the voting rights exercisable at shareholder meetings of that company ; or (b) the right to appoint or remove a majority of its board of directors, and any company which is a Subsidiary of another company is also a Subsidiary of that company's holding company . Unless the context otherwise requires, the application of the definition of Subsidiary to any company at any time shall apply to the company as it is at that time . Substantiated Claim : a Claim that has been admitted by the Seller or finally adjudicated by an arbitrator, court of competent jurisdiction, or administrative agency . Tax or Taxation:  has the  meaning  set out  in  Schedule  7,  paragraph  1 .   Tax Covenant:  the tax  covenant set  out  in  Schedule 7 . Tax Warranties:  the  Warranties set  out  in  Schedule  4,  Part  2 .   Transferring Employee : has  the meaning  given  in  Clause 5.3(d)(ii) ; Transaction:  the  transaction contemplated by  this Agreement or  any  part of  that   transaction. TSXV:  TSX Venture Exchange,  the  stock  exchange on which the  Seller  is listed. USD, US$ or other customary abbreviations thereof:  United  States dollars,  the   lawful currency  of the  United States  of America. Warranties:  the  warranties given pursuant to  Clauses  7  and  8  and  set out in Schedule  4  by  the Buyer or  Seller  as the case  may be.

     

     

    

8 2. Clause, Schedule and paragraph headings shall not affect the interpretation of this Agreement . 3. References to Clauses and Schedules are to the Clauses of and Schedules to this Agreement and references to paragraphs are to paragraphs of the relevant Schedule . 4. The Schedules form part of this Agreement and shall have effect as if set out in full in the body of this Agreement . Any reference to this Agreement includes the Schedules . 5. A reference to this Agreement or this Share Sale Agreement or to any other agreement or document referred to in this Agreement is a reference to this Agreement or such other agreement or document as varied or novated in accordance with its terms from time to time . 6. Unless the context otherwise requires, words in the singular shall include the plural and the plural shall include the singular . 7. Unless the context otherwise requires, a reference to one gender shall include a reference to the other genders . 8. A person includes a natural person, a corporate or unincorporated body (whether or not having separate legal personality) and that person's successors and permitted assigns . 9. A reference to a party shall include that party's personal representatives, successors and permitted assigns . 10. A reference to a company shall include any company, corporation or other body corporate, wherever and however incorporated or established . 11. A reference to writing or written includes fax but not email (unless otherwise expressly provided in this Agreement) . 12. Any words following the terms including , include , in particular , for example or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms . 13. Unless otherwise provided, a reference to a law is a reference to it as amended, extended or re - enacted from time to time ; provided that, as between the Parties, no such amendment, extension or re - enactment made after the date of this Agreement shall apply for the purposes of this Agreement to the extent that it would impose any new or extended obligation, liability or restriction on, or otherwise adversely affect the rights of, any Party . 14. Any obligation on a Party not to do something includes an obligation not to allow that thing to be done . 15. References to times of day are, unless the context otherwise requires, to Singapore time and references to a day are to a period of twenty - four hours running from midnight on the previous day .

     

     

    

9 2. C ONDITIONS 1. Closing is subject to and conditional upon the Conditions in Schedule 2 , Part A (“ Buyer’s Conditions Precedent ”) and Schedule 2 , Part B (“Seller’s Conditions Precedent ”) being satisfied (or waived pursuant to Clause 2 . 6 ) by the Closing Date . 2. If any of the Conditions are not satisfied in accordance with Clause 2 . 1 , then unless each unfulfilled Condition is waived pursuant to Clause 2 . 6 , the Party entitled to terminate the Agreement for such non - satisfaction pursuant to Clause 2 . 7 may terminate this Agreement by written notice and such termination shall take effect three Business Days after such notice . Upon termination, this Agreement shall cease to have effect except for : (a) the provisions referred to in Clause 2 . 3 ; and (b) subject to the Clause 9 ( Limitations on Claims ), any rights, remedies, obligations or liabilities of the Parties that have accrued under this Agreement up to the date of termination, including the right to claim damages in respect of any breach of this Agreement which existed at or before the date of termination . 3. Following termination of this Agreement, the following Clauses shall expressly continue to have effect in addition to the Parties’ respective rights and obligations under any Clause or provision that expressly or by implications in intended to come into or continue in force on or after termination : Clause  1 ( Interpretation ); Clause  2 ( Conditions ); Clause  14  ( Confidentiality and announcements ); Clause  17  ( Entire agreement );   Clause  18  ( Variation and  waiver );   Clause  19 ( Costs ); Clause  20 ( Notices ); Clause  26  ( Language ); and Clause  27  ( Governing  law  and jurisdiction ). 4. The Buyer shall use all reasonable endeavours (so far as lies within its powers so to do) to ensure that the Conditions set out in Schedule 2 , Part A, paragraphs 2 and 3 and Part B, paragraphs 2 and 4 are satisfied as soon as practicable and in any event no later than five Business Days before the Closing Date . The Seller shall use all reasonable endeavours (so far as lies within its powers so to do) to ensure that the Conditions set out in Schedule 2 , Part A, paragraphs 1 , 4 , 5 , 6 , 7 and 8 and Part B, paragraphs 1 and 3 are satisfied as soon as practicable and in any event no later than five Business Days before the Closing Date .

     

     

    

10 5. The Parties shall cooperate fully in all actions necessary to procure the satisfaction of the Conditions, including (but not limited to) the provision by the Parties of all information reasonably necessary to make any application for consent, notification or filing that the either Party deems to be necessary for their purposes or as requested by any relevant authority, keeping the other Party informed of the progress of any notification or filing and providing such assistance as may reasonably be required . For avoidance of doubt, (i) the Seller is put on notice that for the Buyer to proceed with the Transaction it is required to complete filings or obtain approvals, as the case may be, from relevant PRC regulatory authorities in connection with this Transaction, and (ii) the Buyer is put on notice that the Seller will be required to issue press releases to the public, a circular to its shareholders and filings with the TSXV, each of which would include a disclosure of this Agreement and any other definitive agreements or key parts of them (including where relevant the Ancillary Agreements), but the Seller shall not issue such press releases, circular or filings without consultation in good faith with the Buyer and provided that no information relating to the Buyer and Buyer’s Group shall be included in such press releases, circular or filings without the Buyer’s prior written consent (such consent not to be unreasonably withheld or delayed beyond 3 Business Days) . Notwithstanding anything in this Agreement, the Buyer shall not owe any duty to any of the Seller or its directors, officers and shareholders to ensure that any such press releases, circular, filings or any other document issued by or on behalf of the Seller does not make any untrue statement of a material fact or does not omit to state a material fact necessary in order to make the statement made in such press releases, circular, filings or other document, in the light of the circumstances under which they were made, not misleading . 6. The Buyer may, to such extent it thinks fit (in its absolute discretion) and is legally entitled to do so, waive in whole or in part any of the Conditions in Schedule 2 , Part A by written notice to the Seller ; and the Seller may, to such extent it thinks fit (in its absolute discretion) and is legally entitled to do so, waive in whole or in part any of the Conditions in Schedule 2 , Part B by written notice to the Buyer, provided that the Conditions in Schedule 2 , Part B, paragraphs 1 and 3 may be waived only by the mutual agreement of the Buyer and the Seller . 7. Any non - satisfaction of : (a) each of the Conditions in Schedule 2 , Part A may be relied upon to terminate this Agreement only by the Buyer ; (b) each of the Conditions in Schedule 2 , Part B, paragraphs 2 and 4 may be relied upon to terminate this Agreement only by the Seller ; and (c) each of the Conditions in Schedule 2 , Part B, paragraphs 1 and 3 may be relied upon to terminate this Agreement only by the mutual agreement of the Buyer and the Seller, provided that a Party may not terminate this Agreement upon the non - satisfaction of any Condition if such Condition has not been satisfied or has become incapable of satisfaction as a result of a failure by such Party to comply with its obligations under this Agreement .

     

     

    

11 3. S ALE AND PURCHASE 1. On the terms of this Agreement and subject to the Conditions, the Seller shall sell and the Buyer shall buy from the Seller the Sale Shares, together with all rights that attach (or may in the future attach) to such Sale Shares including, in particular, the right to receive all dividends and distributions declared, made or paid on or after the Closing Date . 2. The Seller covenants with the Buyer that : (a) it has the  right to sell the Sale Shares  on the terms  set  out  in this   Agreement; (b) it  shall  do  all  it  can to  give  the  Buyer  the  full legal  and beneficial  title to  the   Sale  Shares; (c) it  sells its Sale  Shares  free from  all  Encumbrances  on  Closing Date; (d) it shall not require Denselight to issue any share capital (except pursuant to the Intercompany Loan Capitalisation) or create an Encumbrance affecting any unissued shares or debentures or other unissued securities of Denselight ; (e) no commitment has been given to create an Encumbrance affecting the Sale Shares (or any unissued shares or debentures or other unissued securities of Denselight) ; and (f) the execution, delivery and performance by it of this Agreement do not require the approval or consent of, or any filing with, any Governmental Authority or agency in the United States of America, Canada or Singapore SAVE FOR the lodgement of the share transfer with ACRA and e - stamping of the share transfers with IRAS and the review and approval of the Transaction by the TSXV . 4. P AYMENTS 1. Payments . The Buyer shall pay to the Seller a sum of USD twenty eight million (USD 28 , 000 , 000 ), out of which USD twenty six million (USD 26 , 000 , 000 ) is the purchase price for the Sale Shares ( "Purchase Price" ) and USD two million (USD 2 , 000 , 000 ) is the transaction expenses which shall be paid by the Seller to the Buyer’s financial adviser, Oak Capital Investment Company Limited . The payments will be made in accordance with the details in Schedule 9 . 2. Earn - Out Payment . A further USD four million (USD 4 , 000 , 000 . 00 ) (" Earn - out Payment ”) will be paid by the Buyer to the Seller if Denselight achieves earn - out revenues (“ Earn - out Revenues ”) of USD nine million (USD 9 , 000 , 000 . 00 ) or more within the period commencing on January 1 , 2019 and expiring on December 31 , 2019 (“ FY 19 ”) at a gross profit margin level of no less than 57 . 7 % (i . e . , no less than 95 % of that for the financial year commencing on January 1 , 2018 and ended on December 31 , 2018 (“ FY 18 ”)), and for the purpose of recording and recognising Earn - out Revenues and the gross profit margin level of FY 19 , the same principles, methods and standards as applied for the auditor's report of FY 18 for Denselight shall be applied for FY 19 . The Buyer will pay Seller the Earn - out Payment within 3 Business Days after the Earn - out Revenues and gross profit margin have been met as confirmed by Denselight’s auditor in writing .

     

     

    

12 5. C LOSING 1. Closing shall take  place  on  the  Closing  Date at  such  place or  time agreed by  the   Parties. 2. In this  Agreement,  Closing Date  means  on or  before October 31,  2019, or  such other   date mutually  agreed  by  the Parties. 3. The Seller: (a) undertakes to the Buyer that at all times during the Interim Period the Business of Denselight shall be conducted in the manner provided in Schedule 3 ; (b) gives the Buyer the undertakings set out in Schedule 3 during the Interim Period ; (c) shall, up to the Closing Date, procure Denselight to comply with the undertakings set out in Schedule 3 as if it were a party to this Agreement ; (d) shall : (ii) (iii) (i v ) (i) not, and shall procure that none of the members of the Seller’s Group shall, during the Interim Period, either alone or together with any other person, without the prior written consent of the Buyer, directly or indirectly, solicit or endeavour to entice away, offer employment to or employ, or offer or conclude any contract for services with, any employee of Denselight as at the date of this Agreement (except for such employees whose names are set out in a list mutually agreed in writing between the Seller and the Buyer no later than 7 Business Days after the date of this Agreement, or on a date otherwise agreed) ; as soon as reasonably practicable after the date of this Agreement, and in any case no later than 7 Business Days prior to Closing, deliver to the Buyer the termination letter or resignation letter in respect of each such relevant identified employees of Denselight (being a subset of those whose names are set out in the list under Clause 5 . 3 (d)(i) ) (such relevant identified employees, “ Transferring Employees ”) ; deliver to the Buyer a written statement (in a form to be mutually agreed between the Buyer and the Seller) from each Transferring Employee that he/she waives any and all claims which he/she may have against Denselight in connection with his/her employment with Denselight ; and subject to Closing, indemnify and hold harmless the Buyer or, as the Buyer may direct, Denselight from and against any and all Losses which the Buyer or Denselight may at any time and from time to time sustain, incur or suffer as a result of or arising out of the termination of employment of such Transferring Employees ;

     

     

    

13 (e) undertakes to : (i) provide, or procure Denselight to provide, such net working capital information, numbers and such documents as to show in reasonable details the workings of the Seller in preparing such net working capital information for the period from February 3 , 2019 up to the latest date for which such information is available, such latest date not being earlier than 14 days prior to Closing Date ; and (ii) provide such information in paragraph (i) above no later than seven days prior to Closing for the Buyer’s review, so as to allow the Buyer to assess the Seller’s compliance with the Condition in Schedule 2 , Part A, paragraph 4 ( Working Capital ) ; and (f) shall, in respect of the domain name, www . denselight . com (“ Domain Name ”) : (ii) (i) perform acts and execute documents as are necessary, in the opinion of Buyer, to complete the transfer of the Domain Name, as soon as possible but in any case before Closing, to Denselight ; and assist in the resolution of any question raised or request made by any domain name registrar concerning the transfer of the Domain Name to Denselight, until Denselight has absolute control over, and the ability to change without reference to any person, the name of the person reflected as the registrant or owner of the Domain Name, in WHOIS searches carried out at a website operated by the relevant domain name registrar for that Domain Name . 4. At Closing, the Seller shall : (a) transfer the Sale Shares in such form as is necessary for the Buyer to acquire legal ownership of the Sale Shares in accordance with the laws of Singapore ; (b) deliver (or cause to be delivered) all other documents identified in the Closing Agenda as documents to be delivered by the Seller at Closing ; and (c) deliver a certificate, in agreed form, signed by a duly authorised director of the Seller confirming that : (ii) (iii ) (i) at the Closing Date, each of the Fundamental Warranties is true and accurate and not misleading ; at the Closing Date, except as Disclosed, each of the Seller’s warranties in Schedule 4 (other than the Fundamental Warranties) is true and accurate and not misleading in all material respects (with the foregoing materiality standard not to be construed in a manner giving duplicative effect to any materiality standard contained in the terms of such Seller's warranties) ; during the period commencing on the date of this Agreement and ending on the Closing Date, Clause 5 . 3 has been complied with in all material respects ; and

     

     

    

14 (i v) the Conditions in Schedule 2 , Part A, paragraph 4 ( Working Capital ), paragraph 9 ( Seller’s Warranties and Undertakings ) and paragraph 10 ( No Material Adverse Change ) have been complied with . 5. At Closing, the Buyer shall : (a) pay the sums set out in Schedule 9 due to be paid on the Closing Date by transfer of funds for same day value ; (b) deliver (or cause to be delivered) all other documents identified in the Closing Agenda as documents to be delivered by the Buyer at Closing . 6. The Buyer agrees that, on or prior to but with effect from Closing, Denselight shall enter into a Preferred Supply Agreement and a Strategic Cooperation Agreement, substantially in the form agreed between the Parties and governed by Singapore law, which shall contain the following material terms : (a) Preferred Supply Agreement : (ii) (iii) (i v ) ( v i) (i) Denselight shall exert commercially reasonable efforts to reserve and dedicate capacity to meet and satisfy the Seller's commercial volume product sales die demand (and other goods and services, as the case may be), for a period of two years from the Closing Date ; The Seller shall provide Denselight with annual customer demand forecasts, reviewed and updated quarterly ; Denselight will provide reasonable notice of not less than six ( 6 ) months to the Seller if Denselight is unable to meet the supply demands of the Seller . Seller shall not be precluded from manufacturing the products itself or from utilizing alternate suppliers ; The quality metrics of the product to be sold by Denselight to the Seller will be mutually agreed upon from time to time, and will be set out in the Preferred Supply Agreement ; (v) Denselight will provide epitaxial wafer processing services (Fab A, Fab B and APT processing) to the Seller at commercially reasonable terms for the Seller's consigned epitaxial wafers, provided that the services and output is not competitive to or in conflict with Denselight’s products and core business . The output of such services (finished InP active devices based on the Seller's consigned epitaxial wafers) would be for the sole use by the Seller for its optical interposer products, and cannot be marketed or sold by Denselight or its Group ; and Denselight will quote (aa) a preferential cost - plus fixed price for commercial volume product sales components to the Seller for one year after the Closing Date, and (bb) commercially reasonable terms after the first one year, in each case based upon agreed minimum order quantity ; and

     

     

    

15 (b) Strategic Cooperation Agreement (ii) (iii) (i) Upon request by the Seller and mutual agreement on the terms, Denselight shall be a distributor for the Seller and for certain of the Seller's products to companies based in the PRC ; Denselight will continue work on certain development projects identified in the Strategic Cooperation Agreement, with ownership over such projects to be jointly owned with the Seller, until their natural completion, or until end June 2020 , whichever occurs sooner ; Denselight will offer test services to the Seller at a cost - plus basis, subject to capacity availability, for one year after the Closing Date ; and (i v ) The Seller may provide optical interposer solutions to Denselight for Denselight’s sensing market after the Closing, subject to a NRE cost - plus fee at reasonable commercial terms, it being acknowledged by the Parties that in the event of any inconsistency or difference in wording or interpretation between this Agreement and each of the Preferred Supply Agreement and the Strategic Cooperation Agreement in respect of the terms of such Preferred Supply Agreement and the Strategic Cooperation Agreement, each of the Preferred Supply Agreement and the Strategic Cooperation Agreement shall prevail . 7. The Parties may enter into a consultancy services agreement under which Poet will designate Suresh Venkatesan to provide the consultancy services to Buyer or Denselight for an initial period of one year from the Closing Date (subject to extension) . The Parties shall mutually agree on the terms of such consultancy services agreement or any extension thereof . 8. If the Buyer does not comply with its obligations in Clause 5 . 5 in any respect or its obligations in Clause 5 . 6 in any material respect the Seller may (without prejudice to any other rights or remedies it may have) : (a) proceed  to Closing; (b) defer  Closing to  a  date after  the date on which  Closing  would otherwise   have  taken place;  or (c) terminate  this  Agreement by notice in  writing  to  the Buyer. 9. If the Seller does not comply with its obligations in Clause 5 . 3 and/or 5 . 4 in any respect the Buyer may (without prejudice to any other rights or remedies it may have) : (a) proceed  to Closing; (b) defer  Closing to  a  date after  the date on which  Closing  would  otherwise   have  taken place;  or (c) terminate  this  Agreement by notice in  writing  to  the  Seller.

     

     

    

16 10. Employees The Parties acknowledge and agree that it is the commercial intention of the Buyer to retain all the employees of Denselight to the extent reasonably practicable (excluding the Transferring Employees) and, in particular, certain Specified Employees which the Buyer considers to be key to the business of Denselight . 11. Non - Solicitation The Parties agree as follows : (a) All Employees : subject to Closing and Clause 5 . 11 (c) , for a period of twelve ( 12 ) months from the Closing Date, the Seller shall not, and shall procure that none of the members of the Seller’s Group shall, either alone or together with any other person, without the prior written consent of the Buyer (such consent not to be unreasonably withheld or delayed), directly or indirectly, solicit or endeavour to entice away, offer employment to or employ, or offer or conclude any contract for services with : (i) any employee of Denselight as at the Closing Date (excluding any Transferring Employee) ; or (ii) any employee of Denselight who has voluntarily left his or her employment in the 6 - month period immediately preceding the Closing Date ; (b) Specified Employees : subject to Closing and Clause 5 . 11 (c) , for a period of three ( 3 ) years from the Closing Date, the Seller shall not, and shall procure that none of the members of the Seller’s Group shall, either alone or together with any other person, without the prior written consent of the Buyer (such consent not to be unreasonably withheld or delayed), directly or indirectly, solicit or endeavour to entice away, offer employment to or employ, or offer or conclude any contract for services with, any Specified Employee ; (c) nothing in Clauses 5 . 11 (a) and 5 . 11 (b) shall apply : (i) (ii) to solicitations made by job opportunity advertisements directed to the general public rather than targeting any particular employee or Specified Employee ; or with respect to any employee or Specified Employee who has been terminated by its employer, or has voluntarily left his or her employment, more than six ( 6 ) months prior to such solicitation ; and (d) each Party agree that it considers that the restrictions contained in this Clause 5 . 11 are no greater than is reasonable and necessary for the protection of the legitimate business interest of the Buyer but, if any such restriction shall be held to be void but would be valid if deleted in part or reduced in application, such restriction shall apply with such deletion or modification as may be necessary to make it valid and enforceable .

     

     

    

17 6. R EIMBURSEMENTS Capital Equipment 1. The Buyer agrees and accepts that the Seller has advanced funds to Denselight for capital equipment, specialised installation of such capital equipment and capital improvements, as listed in Schedule 8 , for Denselight's benefit since February 3 , 2019 (" Capital Equipment, Installation and Improvement Fees ") . The Parties agree that any further advancement of funds by the Seller for capital equipment, specialised installation of capital equipment and capital improvements during the Interim Period shall require the prior written consent of the Buyer . 2. No later than 1 month prior to the Closing Date, the Seller shall deliver to the Buyer : (a) a list of all capital equipment and installations and the total Capital Equipment, Installation and Improvement Fees expended by the Seller as of Closing Date, together with the purchasing contracts and/or invoices related to the payment of such Capital Equipment, Installation and Improvement Fees ; and (b) a monthly repayment schedule for the Capital Equipment, Installation and Improvement Fees to be reimbursed to the Seller in full by December 1 , 2020 by equal monthly payments commencing on December 1 , 2019 or on the first day of the month immediately following the Closing Date (if the Closing Date is later than December 1 , 2019 ) . 3. The Buyer undertakes to direct Denselight to reimburse the Seller the sum of the Capital Equipment, Installation and Improvement Fees according to the monthly repayment schedule in Clause 6 . 2 (b) . 4. Notwithstanding any other provision in this Agreement, the Parties agree that the Capital Equipment, Installation and Improvement Fees are capped at U . S . Dollars two million and four hundred thousand (USD 2 , 400 , 000 ), and shall only be payable if accompanied by purchasing contracts and/or paid invoices that have been verified in the timely manner and in good faith jointly by Buyer and Seller (or Buyer and Denselight, as the case may be) . Set Off 5. Any sum due to or claimed by the Seller in respect of the Capital Equipment, Installation and Improvement Fees or otherwise in this Agreement may be set off by the Seller against any sum payable by Seller to the Buyer or Denselight under this Agreement or any Ancillary Agreement . 6. Any sum due to the Buyer in respect of a Substantiated Claim for Losses arising from a breach of this Agreement may be set off by the Buyer against any sum payable by the Buyer to the Seller under this Agreement .

     

     

    

18 7. W ARRANTIES A ND U NDERTAKINGS OF T HE B UYER 1. The Buyer warrants to the Seller that : (a) It has full authority and capacity to enter into, execute and deliver this Agreement and to perform its obligations and consummate the transactions contemplated by this Agreement ; (b) Buyer is duly incorporated and validly existing under the laws of the jurisdiction of its incorporation or organisation, having full corporate power and authority to enter into and perform its obligations under this Agreement and to carry out the transactions contemplated by this Agreement (subject to the approvals pursuant to Schedule 2 , Part A, paragraphs 2 and 3 ) ; (c) The Buyer’s obligations under this Agreement are valid, legally binding and enforceable in accordance with its terms ; (d) Buyer is carrying on businesses in material compliance with all applicable laws and regulations ; (e) Its execution and delivery of this Agreement and the performance by Buyer of its obligations and the consummation of the transactions contemplated by this Agreement have been duly authorised by all necessary corporate or other action of Buyer (subject to the approvals pursuant to Schedule 2 , Part A, paragraphs 2 and 3 ) ; (f) There are no material claims, actions and/or proceedings pending or threatened against the Buyer that would materially restrict or affect the Buyer’s ability to perform its obligations under this Agreement ; and (g) Neither the execution nor performance by the Buyer of this Agreement nor any transactions contemplated under this Agreement will violate any provision of its constitutive documents, any order, writ, injunction or decree of any regulatory authority of the PRC applicable to the Buyer or its assets, or any agreement or instrument to which the Buyer is a party or by which the Buyer or its assets are bound . (h) Insolvency (i) The Buyer :  is not insolvent or unable to pay its debts within the meaning of the insolvency legislation applicable to the Buyer ; and  has not  stopped paying  its debts as they  fall due. (ii) No step  has  been taken in  any  jurisdiction to initiate  any  process  by   or  under which:  the ability of the creditors of the Buyer to take any action to enforce their debts is suspended, restricted or prevented ;  some or all of the creditors of the Buyer accept, by agreement or in pursuance of a court order, an amount less than the sums owing to them in satisfaction of those sums with a view to preventing the dissolution of the Buyer ;

     

     

    

19  a person is appointed to manage the affairs, business and assets of the Buyer on behalf of its creditors ; or  the holder of a charge over all or any of the assets of the Buyer is appointed to control the business and/or all or any assets of the Buyer . (iii ) No process has been instituted which could lead to the Buyer being dissolved and its assets being distributed among its creditors, shareholders or other contributors . (i) Disputes and investigations (i) Neither the  Buyer, nor  any  person for whom the  Buyer  is   vicariously liable:   is engaged in any litigation, administrative, mediation or arbitration proceedings or other proceedings or hearings before any statutory or government body, department, board, agency or authority (except for debt collection in the normal course of business) that would materially restrict or affect the Buyer’s ability to perform its obligations under this Agreement ; or is the subject of any investigation, inquiry or enforcement proceedings by any government, administrative or regulatory body or stock exchange of the PRC that would materially restrict or affect the Buyer’s ability to perform its obligations under this Agreement . (ii) (iii) (i v) No director of the Buyer is, to the extent that it relates to the business of the Buyer, engaged in or subject to any of the matters mentioned in Clause 7 . 1 (i)(i) above . No proceedings, investigation or inquiry as are mentioned in paragraph Clause 7 . 1 (i)(i) or (ii) above have been threatened or are pending, and as far as the Buyer is aware there are no circumstances likely to give rise to any such proceedings, investigation or inquiry . The Buyer is not affected by any existing or pending judgments or rulings and has not given any undertakings arising from legal proceedings to any court, governmental agency, regulator, third party or authority that would materially restrict or affect the Buyer’s ability to perform its obligations under this Agreement . 2. The Seller enters into this Agreement on the basis of, and in reliance on, the Buyer’s Warranties set forth in this Clause 7 . The Buyer warrants and represents to the Seller that each Buyer’s Warranty is true and not misleading on the date of this Agreement . 3. The Buyer’s Warranties are deemed to be repeated on each day up to and including the Closing Date and any reference made to the date of this Agreement (whether express or implied) in relation to any Buyer’s Warranty shall be construed, in relation to any such repetition, as a reference to each such day .

     

     

    

20 4. The Buyer shall not do or omit to do anything which would, at any time before or at Closing, be inconsistent with any of the Buyer’s Warranties, breach any Buyer’s Warranty or make any Buyer’s Warranty untrue or misleading . 5. If at any time during the Interim Period, the Buyer becomes aware that a Buyer’s Warranty has been breached, is untrue or is misleading, or has a reasonable expectation that any of those things might occur, it must immediately notify the Seller in writing of the occurrence and in sufficient detail to enable the Seller to make an accurate assessment of the situation . 6. If at any time during the Interim Period it becomes apparent that a Buyer’s Warranty in Clause 7 . 1 has been breached such that the Buyer’s ability to perform its obligations under this Agreement is materially restricted or affected, the Seller may (without prejudice to any other rights it may have in relation to the breach) : (a) terminate this Agreement by notice in writing to the Buyer ; or (b) proceed to Closing . 7. Each of the Warranties is separate and, unless specifically provided, is not limited by reference to any other Warranty or any other provision of this Agreement . 8. W ARRANTIES OF THE S ELLER 1. Save as Disclosed, the Buyer enters into this Agreement on the basis of, and in reliance on, the Warranties set forth on Schedule 4 . 2. The Seller warrants and represents to the Buyer that each of the Seller’s Warranties is true and not misleading on the date of this Agreement . 3. The Seller’s Warranties are deemed to be repeated on each day up to and including the Closing Date and any reference made to the date of this Agreement (whether expressed or implied) in relation to any such Warranty shall be construed, in relation to any such repetition, as a reference to each such day . 4. The Seller shall not do or omit to do anything which would, at any time before or at Closing, be inconsistent with any of the Seller’s Warranties, breach any such Warranty or make any such Warranty untrue or misleading . 5. If at any time during the Interim Period, the Seller becomes aware that a Seller’s Warranty has been breached, is untrue or is misleading, or has a reasonable expectation that any of those things might occur, it must immediately notify the Buyer in writing of the occurrence and in sufficient detail to enable the Buyer to make an accurate assessment of the situation . 6. If at any time during the Interim Period it becomes apparent that a Fundamental Warranty or a Warranty in Schedule 4 , Part 1 , paragraphs 4 ( Information ), 5 ( Compliance with Laws ), 6 ( Licences and Consents ), 8 ( Disputes and Investigations ), 13 ( Insolvency ), 16 ( Intellectual Property ), 17 ( Employment ), 19 ( Accounts ), 20 ( Financial and other Records ) and 22 ( Changes since Accounts Date ) has been breached, the Buyer may (without prejudice to any other rights it may have in relation to the breach) : (a) terminate this Agreement by notice in writing to the Seller ; or (b) proceed to Closing .

     

     

    

21 7. Warranties qualified by the expression so far as the Seller is aware or to the best of the knowledge and information of the Seller (or any similar expression) are deemed to include the actual awareness and knowledge of the Seller's directors and of Suresh Venkatesan, Thomas Raymond Mika and Rajan Rajgopal, in each case having made such due and careful inquiries as are reasonable in the circumstances before giving the relevant Warranty . 8. Each of the Warranties is separate and, unless specifically provided, is not limited by reference to any other Warranty or any other provision of this Agreement . 9. L IMITATIONS  ON C LAIMS 1. Nothing in this Agreement operates to limit or exclude any liability for fraud, willful misconduct, willful concealment or intentional misrepresentation by the Seller . Liability for a Claim that arises as a result of fraud, willful misconduct, willful concealment or intentional misrepresentation by the Seller shall be limited to the Loss suffered by the Buyer . 2. Other than as set forth in Clause 9 . 1 , this Clause limits the liability of the Seller in relation to any Claim for breach of this Agreement including, without limitation, any Claims for breach of the terms, conditions, Warranties, representations, covenants and any indemnities (including, without limitation the Indemnities under Clause 11 ) but excluding any claim under the Tax Covenant and Tax Warranties . 3. Other than as set forth in Clause 9 . 1 , the maximum aggregate liability of the Seller in respect of any and all Claims (other than Claims in respect of a breach of a Fundamental Warranty) shall not exceed USD 13 , 000 , 000 , being 50 % of the Consideration, plus (without double - counting) interest pursuant to Clause 28 , provided that the maximum aggregate liability of the Seller in respect of any and all Claims described in Clauses 9 . 3 and 9 . 4 shall not exceed the Consideration plus (without double - counting) interest pursuant to Clause 28 . 4. Fundamental Warranty : Other than as set forth in Clause 9 . 1 , the maximum aggregate liability of the Seller in respect of any and all Claims in respect of a breach of a Fundamental Warranty shall not exceed the Consideration plus (without double - counting) interest pursuant to Clause 28 , provided that the maximum aggregate liability of the Seller in respect of any and all Claims described in Clauses 9 . 3 and 9 . 4 shall not exceed the Consideration plus (without double - counting) interest pursuant to Clause 28 . 9 . 5 De Minimis Claims : The Seller shall not be liable in respect of any Claim (other than Claims made in respect of a breach of a Fundamental Warranty or Claims made pursuant to Clause 9 . 6 ) made against it unless the aggregate amount of damages or payment to which the Buyer would, but for this Clause 9 . 5 , be entitled under such Claim and any and all other Claims, whether or not arising from the same or similar fact, matter or circumstance, exceeds USD 250 , 000 .

     

     

    

22 6. Capital Equipment : In the case of any single Claim arising from a breach of the Seller’s Warranty in Schedule 4 , Part 1 , paragraph 14 . 3 . 1 ( good working order ) (and not any other clause of this Agreement), with respect to existing capital equipment as at the date hereof (but excluding any capital equipment purchased on or after 3 February 2019 ) (“ Existing Capital Equipment ” for the purpose of this Clause), the Seller shall not be liable in respect of any such Claim unless the amount of damages or payment to which the Buyer would, but for this Clause 9 . 6 , be entitled under such Claim exceeds USD 250 , 000 . For the avoidance of doubt, any Claim with respect to Existing Capital Equipment arising from a breach of any other Warranty other than Schedule 4 , Part 1 , paragraph 14 . 3 . 1 shall not be bound by this Clause 9 . 6 . 7. Where the aggregate amount of damages in respect of all Claims made against the Seller referred to in Clause 9 . 5 above exceeds USD 250 , 000 , the Seller shall be liable only for the amount of damages in excess of such amount for all such Claims . 8. Where the aggregate amount of damages in respect of all Claims made against the Seller referred to in Clause 9 . 6 above exceeds USD 250 , 000 , the Seller shall be liable only for the amount of damages in excess of such amount for all such Claims . 9. The Seller is not liable for any Claim to the extent that the Claim : (a) relates to matters Disclosed ; or (b) relates to any matter specifically and fully provided for in the Accounts . 10. The Seller is not liable for a Claim unless the Buyer has given the Seller notice in writing of the Claim, summarising the nature of the Claim as far as it is known to the Buyer and the amount claimed, within : (a) in  the case of a  Claim  made  in connection with  the  Fundamental   Warranties, the  period  of  five (5) years beginning with  the  Closing Date; (b) in  the case of a claim  under  the Tax  Covenant  or  Tax  Warranties, the  period   of  five (5) years beginning with  the  Closing Date; and (c) in  all  other cases,  the  period  of  eighteen (18) months beginning  with  the   Closing Date. 1 0 . 11. The survival limitations set forth in Clause 9 . 10 above do not apply to any Claim that arises or is delayed as a result of fraud, wilful misconduct or wilful concealment by the Seller . 12. The Buyer is not entitled to recover damages or otherwise obtain restitution more than once in respect of the same Loss . T AX C OVENANT The provisions  of  Schedule  7  apply in  this  Agreement  in  relation to Taxation.

     

     

    

23 11. I NDEMNITIES 1. Subject to Clause 9 , the Seller undertakes to indemnify, and to keep indemnified, the Buyer and Denselight against all Losses, which may be suffered or incurred by any of them and which arise directly or indirectly in connection with any material inaccuracy in or material breach of any Warranties made by the Seller under this Agreement . 2. A claim under this Clause 11 shall include : (a) an amount in respect of all costs and expenses incurred by the Buyer or Denselight (as the case may be) in bringing such claim ; and (b) any amount necessary to ensure that, after any Taxation of the payment, the Buyer or Denselight, as the case may be, is left with the same amount it would have had if the payment was not subject to Taxation . 12. F AIR R ESTRAINTS 1. In this clause, the following words and expressions shall have the following meanings : Restricted Business: Restricted Customer: 12 . 2 The Buyer covenants that it shall procure that Denselight and Denselight's Group shall not, without the Seller’s consent, at any time during the period of two ( 2 ) years commencing on the Closing Date carry on or be engaged in a Restricted Business . REDACTED  - COMPETITIVELY SENSITIVE   INFORMATION REDACTED  - COMPETITIVELY SENSITIVE   INFORMATION

     

     

    

24 13. O PTICAL  I NTERPOSER  P RODUCT  C ARVE - O UT  AND  D ENSELIGHT IPR 1. In this clause, the following words and expressions shall have the following meanings : Optical Interposer Technology : such novel dielectric waveguide technology that is owned by the Seller, that allows the integration of customized or specifically designed electronic and photonic devices into a single multi - chip module . 2. For the avoidance of doubt, as agreed by the Parties, the Optical Interposer Technology is not the subject of the Transaction save as expressly provided for under this Agreement . The Seller reserves all its rights (including all Intellectual Property Rights) to the Optical Interposer Technology and nothing in this Agreement shall be construed to transfer any ownership interest in the Optical Interposer Technology or the rights thereto to the Buyer or Denselight . Any Restricted Customer who is at Closing, or who has been at any time during the period of two ( 2 ) years immediately preceding the Closing Date, a client or customer of, or in the habit of dealing with, Denselight, Seller or any member of the Seller’s Group, in respect of the Optical Interposer Technology, shall be insofar as between the Seller, the Buyer and Denselight, the sole customer of the Seller and the Seller's Group for the Optical Interposer Technology . " Restricted Customer " shall have the meaning ascribed to it in Clause 12 . 1 . 3. In furtherance of Clause 13 . 2 , the Buyer covenants that it shall procure that Denselight and any member of Denselight’s Group shall direct any and all queries, notices, correspondences, enquiries, invitations, offers and other communications whether electronic, teleconference or otherwise from the Restricted Customers so caught by Clause 13 . 2 to the Seller for further attention, and to refrain from actively engaging with said Restricted Customer in relation to the Optical Interposer Technology as much as reasonably possible in the circumstances . 4. Denselight IPR : Parties acknowledge and agree that, with the exception of the Optical Interposer Technology, Denselight shall own all rights, title and interests (including Intellectual Property Rights) in all products, technologies, processes and Know - how used by or on behalf of Denselight as at the Closing Date REDACTED  - COMPETITIVELY  SENSITIVE INFORMATION

     

     

    

25 14. C ONFIDENTIALITY AND ANNOUNCEMENTS 1. Subject to the provisions of this Clause 14 (including without limitation to Clause 14 . 6 ), the Parties agree that the transaction contemplated by the terms hereof shall remain and be kept confidential, and that any press release or announcement to third parties shall be made by mutual agreement of the Parties only or as required by applicable securities laws . 2. Buyer undertakes to Seller that it shall : (a) keep confidential the terms of this Agreement and all confidential information or trade secrets in its possession concerning the technology, business, affairs, customers, clients or suppliers of Seller ; (b) not disclose any of the information referred in Clause 14 . 2 (a) in whole or in part to any third party, except as expressly permitted by this Clause 14 ; and (c) not make any use of any of the information referred in Clause 14 . 2 (a) , other than to the extent necessary for the purpose of exercising or performing its rights and obligations under this Agreement . 3. Nothing in this Agreement shall be construed as imposing on the Buyer an obligation to keep confidential, or restrict its use after Closing, of any Intellectual Property Rights owned by Denselight . 4. Notwithstanding any other provision of this Agreement, no Party is required to keep confidential or to restrict its use of any information that : (a) is or becomes public knowledge or otherwise generally available to the public (other than as a direct or indirect result of the information being disclosed in breach of this Agreement) ; (b) that the Parties agree in writing is not confidential ; or (c) was, is or becomes available to the receiving party on a non - confidential basis from a person who, to the receiving Party's knowledge, is not bound by a confidentiality agreement with the disclosing party or otherwise prohibited from disclosing the information to the receiving Party . 5. Any of the Parties may disclose any information that it is otherwise required to keep confidential under this Clause 14 : (a) to those of its employees, officers, consultants, representatives or advisers (or those of any member of its Group) who need to know such information to enable them to advise on this Agreement, or to facilitate the Transaction, PROVIDED THAT the Party making the disclosure informs the recipient of the confidential nature of the information before disclosure and procures that each recipient shall, in relation to the information disclosed to him, comply with the obligations set out in this Clause 14 as if the recipient were that party . The Party making a disclosure under this Clause shall, at all times, be liable for any failure by its recipients to comply with the obligations set out in this Clause ; (b) with the prior consent in writing of the other Party ;

     

     

    

26 (c) to confirm either that the Transaction has taken place, or the Closing Date, but without otherwise revealing any other terms of the Transaction or making any other announcement ; or (d) to the extent that the disclosure is required : (ii) (iii) (i v ) (i) by the laws of any jurisdiction to which the disclosing party is subject ; by an order of any court of competent jurisdiction, or any regulatory, judicial, governmental or similar body, or any taxation authority or securities exchange of competent jurisdiction, provided that such order falls within the legal scope of authorization or remit of such court, body, authority or exchange ; to make any filing with, or obtain any authorisation from, a regulatory, governmental or similar body, tax authority or securities exchange of competent jurisdiction ; under any arrangements in place under which negotiations relating to terms and conditions of employment are conducted ; or (v) to protect the disclosing party's interest in any legal proceedings, 1 5 . PROVIDED that in each case (and to the extent it is legally permitted to do so) the Party making the disclosure gives the other Party as much notice of such disclosure as possible . 6. Subject to Clause 14 . 7 , no Party shall make, or permit any person to make, any public announcement, communication or circular (an announcement) concerning this Agreement or the Transaction without the prior written consent of the other Party (such consent not to be unreasonably withheld or delayed) . 7. Nothing in Clause 14 . 6 shall prevent any Party from making an announcement required by law or any Governmental Authority (including, without limitation, any relevant securities exchange), or by any court or other authority of competent jurisdiction provided that the party required to make the announcement consults with the other Party and takes into account the reasonable requests of the other Party in relation to the content of such announcement before it is made . 8. This Clause shall continue to have effect for the period of two ( 2 ) years following the Closing Date . F URTHER ASSURANCE The Parties shall (at their own expense) promptly execute and deliver such documents and perform such acts as the other Party may reasonably require from time to time for the purpose of giving full effect to this Agreement .

     

     

    

27 16. A SSIGNMENT 1. Subject to the further provisions of this Clause 16 , no Party shall assign, transfer, mortgage, charge, declare a trust of, or deal in any other manner with any or all of its rights and obligations under this Agreement (or any other document referred to in it), with the exception that the Buyer may, and the Seller shall take all such actions as are reasonably required for the Buyer to, novate all of the Buyer’s rights, benefits and obligations under or in connection with this Agreement to a direct or indirect affiliate by written notice at least five Business Days prior to Closing, subject to the Buyer issuing a guarantee in favour of the Seller in respect of and as surety for all of the assignee's obligations under this Agreement . 2. Each Party confirms it is acting on its own behalf and not for the benefit of any other person . 17. E NTIRE AGREEMENT 1. This Agreement constitutes the entire agreement between the Parties and supersede and extinguish all previous discussions, correspondence, negotiations, drafts, agreements, promises, assurances, warranties, representations and understandings between them, whether written or oral, relating to their subject matter . 2. Nothing in this Agreement operates to limit or exclude any liability for fraud or intentional misrepresentation by the Seller . 18. V ARIATION  AND WAIVER 1. No variation of this Agreement shall be effective unless it is in writing and signed by the Parties (or their authorised representatives) . 2. A waiver of any right or remedy under this Agreement or by law is only effective if it is given in writing . Any such waiver shall apply only to the circumstances for which it is given and shall not be deemed a waiver of any subsequent breach or default . 3. A failure or delay by a party to exercise any right or remedy provided under this Agreement or by law shall not constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict any further exercise of that or any other right or remedy . No single or partial exercise of any right or remedy provided under this Agreement or by law shall prevent or restrict the further exercise of that or any other right or remedy . 19. C OSTS 1. Save as otherwise stated in this Agreement each Party shall pay its own costs and expenses incurred in connection with the Transaction, including the negotiation, preparation and execution of this Agreement (and any documents referred to in it) . 2. Subject to Clause 19 . 3 , if Closing does not take place by the Closing Date for any reason whatsoever, the Buyer shall pay through Jingtian & Gongcheng, the fees and expenses and taxes thereon of the relevant third party consultants appointed by the Buyer (being Deloitte and Touche, Jingtian & Gongcheng, Allen & Gledhill LLP and Blake, Cassels & Graydon LLP only) (such fees and expenses and taxes thereon, “ Diligence Fees ” for the purpose of this Clause 19 ) .

     

     

    

28 3. If Closing does not take place by the Closing Date solely due to the Seller being unable to obtain the shareholder approval referred to in Schedule 2 , Part B, paragraph 1 , the Seller shall pay the fees of the relevant third party consultants appointed by the Buyer and reimburse the Buyer for the Diligence Fees . 4. If Closing takes place by the Closing Date, the Transaction's Diligence Fees only shall be paid for by the financial advisors to the Transaction, Oak Capital Investment Company Limited and its parent company China Prosper Group, notwithstanding Clause 19 . 1 . 5. The Buyer shall be responsible to attend to stamping and to pay stamp duty on the Transaction . 20. N OTICES 1. A notice given to a Party under or in connection with this Agreement : (a) shall be in writing and in English (or be accompanied by an accurate translation into English) ; (b) shall be signed by or on behalf of the Party giving it ; (c) shall be sent to the relevant Party for the attention of the person and to the address or fax number specified in Clause 20 . 2 , or to such other address, fax number or person as that party may notify to the other in accordance with Clause 20 . 3 ; (d) shall be :  delivered by hand;  sent by fax;  sent by pre - paid recorded delivery or special delivery ; or  sent by airmail or by reputable international overnight courier (if the notice is to be served by post to an address outside the country from which it is sent) ; and  is  deemed received  as  set  out  in  Clause 20.4 . 2. The addresses  and  fax numbers for service  of  notices are: Seller Poet Technologies Inc. (a) address: 120 Eglinton Avenue East, Ste 1107, Toronto, Ontario M4P 1E2, Canada (b) for the attention of:  Suresh Venkatesan (c) fax number: 416 - 861 - 0749 with  copy to: - Poet Technologies Inc.  (US Office) (a) address:  780 Montague Exp., Ste 107m San Jose, CA 95131, USA (b) for the attention of:  Thomas Mika

     

     

    

29 Buyer DenseLight Semiconductor Technology (Shanghai) Co. Ltd. (a) address:  1901, China  World  Office  2, No. 1  Jian  Guo Men Wai  Ave., Beijing   100004, China (b) for the attention of: Jianxiong  Li  (Julian  Lee)  (c) fax number: +86 10 6530 5235 with  copy  to Buyer's  financial adviser: - Oak Capital Investment Company Limited (a) address : 14 th Floor, South China Building 1 - 3 Wyndham Street, Central, Hong Kong (b) for the attention of : Ms . Grace Cheung, Secretarial Manager (c) fax number : ( 852 ) 2868 - 0708 3. A Party may change its details for service of notices in Clause 20 . 2 by giving notice in writing to the other Party . Any change notified pursuant to this Clause shall take effect at 9 . 00 am on the later of : (a) the date (if any) specified in the notice as the effective date for the change ; or (b) five Business Days after deemed receipt of the notice of change . 4. Delivery of a notice is deemed to have taken place (provided that all other requirements in this Clause 20 have been satisfied) : (a) if  delivered by hand,  on  signature  of a  delivery receipt  or  at  the time the   notice is  left  at the address; (b) if  sent  by  fax,  at the  time of transmission; (c) if sent by pre - paid airmail to an address outside the country from which it is  sent,  at  9.00 am  on the seventh Business  Days after posting; (d) if sent by reputable international overnight courier to an address outside the country from which it is sent, on signature of a delivery receipt or at the time the notice is left at the address ; or (e) if deemed receipt under the previous paragraphs of this Clause 20 . 4 would occur outside business hours (meaning 9 . 00 am to 5 . 30 pm Monday to Friday on a day that is not a public holiday in the place of deemed receipt), at 9 . 00 am on the day when business next starts in the place of deemed receipt . For the purposes of this Clause, all references to time are to local time in the place of deemed receipt . 3. To prove service, it is sufficient to prove that : (a) if delivered by hand or by reputable international overnight courier, the notice was delivered to the correct address ; (b) if sent by fax, a transmission report was received confirming that the notice was successfully transmitted to the correct fax number .

     

     

    

30 2 1 . 2 2 . 2 3 . 2 4 . 2 5 . 2 6 . 6. This Clause 20 does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution . 7. A notice given under or in connection with this Agreement is not valid if sent by email . S EVERANCE If any provision or part - provision of this Agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable . If such modification is not possible, the relevant provision or part - provision shall be deemed deleted . Any modification to or deletion of a provision or part - provision under this Clause shall not affect the validity and enforceability of the rest of this Agreement . A GREEMENT SURVIVES  C LOSING This Agreement (other than obligations that have already been fully performed) remains in full force after Closing . S UCCESSORS This Agreement (and the documents referred to in it) are made for the benefit of the Parties and their successors and permitted assigns, and the rights and obligations of the Parties under this Agreement shall continue for the benefit of, and shall be binding on, their respective successors and permitted assigns . C OPIES  OF A GREEMENT The Seller and Denselight shall each receive an original signed copy of this Agreement and the Buyer shall receive four ( 4 ) original signed copies of this Agreement . R IGHTS AND REMEDIES Except as expressly provided in this Agreement, the rights and remedies provided under this Agreement are in addition to, and not exclusive of, any rights or remedies provided by law . Unless otherwise stated, nothing in this Agreement is intended to grant to any third party any right to enforce any term of this Agreement or to confer on any third party any benefits under this Agreement save that the Seller expressly reserves all rights and remedies it may have and may bring an action directly against Denselight in respect of Denselight’s obligations and liabilities under this Agreement and/or an Ancillary Agreement without or without first commencing any action against the Buyer . L ANGUAGE This Agreement is written both in English and Chinese and the both language versions shall have equal force . However, in the event there is any discrepancy between the English and Chinese versions of this Agreement, the English version shall prevail .

     

     

    

31 2 8 . 27. G OVERNING LAW AND  JURISDICTION 1. This Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non - contractual disputes or claims) are governed by and construed in accordance with the laws of the PRC . 2. All disputes, disagreements, controversies or claims arising out of or in connection with this Agreement in any manner whatsoever, whether direct or indirect, including without limitation respecting its formation, execution, validity, application, interpretation, performance, breach, termination, enforcement and the damages and/or other remedies resulting from breach, non - performance or non - compliance with this Agreement and/or any dispute regarding non - contractual obligations arising out of this Agreement shall be referred to and finally resolved by arbitration administered by the Hong Kong International Arbitration Centre (“ HKIAC ”) under the HKIAC Administered Arbitration Rules in force when the Notice of Arbitration is submitted . None of the arbitrators appointed under the authority of this Agreement shall be a citizen or national of any of the Parties to this Agreement . The law of this arbitration clause shall be PRC laws, the seat of arbitration shall be Hong Kong, or such other place as may be agreed to by the Parties . The arbitration proceedings shall be conducted in the English language . D EFAULT I NTEREST If the Seller or the Buyer defaults in the payment when due of any sum payable under this Agreement its liability shall be increased to include interest on such sum from the date when such payment is due (in the case of damages, from the date on which the Loss arises) until the date of actual payment (after as well as before judgment) at a rate per annum of 8 per cent . Such interest shall accrue from day to day . 29. F ORCE M AJEURE 1. "Event of Force Majeure" means, in relation to a Party, any event or circumstance, or combination of events or circumstances : (a) that is beyond the reasonable control of that Party ; (b) that substantially prevents or delays such Party from fulfilling its obligations under this Agreement ; and (c) the effects of which could not have been reasonably foreseen and prevented, overcome, remedied or mitigated in whole or in part by that Party through the exercise of diligence and reasonable care, including but not limited to acts of God, acts of civil or military authority, sabotage, terrorism, war, pandemic or other government action, civil disturbance or riot, strike, national emergency, flood, earthquake, fire or other natural catastrophe, restraint by court order or public or Governmental Authority (so long as the affected Party has not applied for or assisted in the application for, and has opposed where and to the extent reasonable, such restraint), provided that the lack, insufficiency or non - availability of funds shall not constitute an Event of Force Majeure .

     

     

    

32 2. Either Party shall be excused from any delay or failure in performance required hereunder if caused by reason of any Event of Force Majeure . The obligations and rights of the Party so excused shall be extended on a day - to - day basis for the time period equal to the period of such excusable interruption . The Party affected by an Event of Force Majeure may suspend the performance of its obligations under this Agreement until any disruption resulting from such Event of Force Majeure has been resolved . However, such Party shall make every effort to eliminate any obstacles resulting from the Event of Force Majeure, thereby minimizing to the greatest extent possible its adverse effects, as well as any resulting Losses . 3. If an Event of Force Majeure continues for more than 60 days, then the Parties shall consult in good faith with each other to agree on what action should be taken with respect to the Transaction . If such reason or contingency continues for another 180 days, then either Party may terminate this Agreement by giving the other Party a written notice . This Agreement has been entered into  on the  date stated  at the  beginning  of it.

     

     

    

33 Item Description Company Name DENSELIGHT  SEM  I CONDUCTORSPTE LTD Incorporation (a) Incorporation   Date 11 May 2000 (b) Registration No. 200004082G (c)  Company Type Pr i vate Company Lim i t ed by Shares (d)  Registered Office 6  Chang i  North  Street  2  S i ngapore 498831 (e)  Principal Activities 1 . Sem i conductor Wafer Fabr i cat i on 2 . Assemb l y and Test i ng of Sem i conduct ors Current  Share Capital Structure S$48 , 347 , 451.02 compr i s i ng 107 , 728 ord i nary shares   US$1 ,  390,608  . 15  compr  i s i ng 27 , 314  ord i nary shares ( subject  to  i ncrease  i n  shares  pursuant to   l nt  ercompany  Loan   Cap i t a l i sat i on ) S$48 , 347 , 451.02 compr i s i ng 107 , 728 ord i nary shares   US$1 ,  390,608  . 15  compr  i s i ng 27 , 314  ord i nary shares ( subject  to  i ncrease  i n  shares  pursuant to   l nt  ercompany  Loan   Cap i t a l i sat i on ) NA (a)  Issued Capital (b)  Paid - Up Capital (c)  Preference Shares (if any) Current Officers (a) Directors Thomas  Raymond M i ka   Rajan Rajgopa l Suresh Venkatesan Schedule  1  - Denselight Information DENSELIGHT  SEMICONDUCTORS  PTE LTD

     

     

    

34 (b) Secretaries Anthony Anne Catharine (c) Auditors Veronica  L & Associates C h a rg e s (i n c l ud i n g   Debentures) NIL Financial Year End 31 December

     

     

    

35 Schedule  2  – Conditions A. 2. 3. 4. 5. 6. BUYER’S  CONDITIONS PRECEDENT The obligations of the Buyer to effect the Transaction under this Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following Conditions (any of which may be waived, in writing, exclusively by the Buyer) : 1. S HAREHOLDER AND  B OARD  A PPROVAL  OF  D ENSELIGHT 1. The Buyer having received from the Seller the approval by the Board of Directors of Denselight in relation to the transfer of shares of Denselight by the Seller to the Buyer, validly passed in accordance with the constitutional documents of Denselight and such approval remaining in full force and effect as at Closing . 2. The Buyer having received the resignation letters of Suresh Venkatesan and Thomas Raymond Mika from the board of Denselight, expressed to be effective as of the Closing Date, such resignation letters to state that they waive any and all claims which they may have against Denselight, in connection with such resignation or otherwise . A PPROVAL  OF  B UYER ’ S S HAREHOLDERS The Buyer having received requisite approval from its shareholders as at the Closing Date, in accordance with prevalent laws and its constitutive documents, of the Transaction and this Agreement and related Ancillary Agreements . A PPROVAL AND  F ILING  IN PRC All the approvals or filings as required under the laws and regulations of the PRC for the purpose of this Transaction, as specified below, having been duly obtained or made and such approvals and filings remaining in force and effect as at Closing, including the approval or filing at the National Development and Reform Commission, Ministry of Commerce or State Administration of Foreign Exchange or their competent local counterparts . W ORKING  C APITAL Any changes in Denselight’s net working capital from February 3 , 2019 to the Closing having arisen only from operations in the normal course of business . S ELLER ’ S D ELIVERABLES The Buyer having received from the Seller all the documents and items as set out in the Closing Agenda in the agreed form . JTC L EASE The Buyer having received a written consent or waiver by or on behalf of JTC Corporation of any right or provision in the lease agreement in respect of the JTC Standard Factory at A 20524 A at 6 Changi North Street 2 S 498831 which entitles JTC Corporation to terminate such lease agreement, or to declare there to have been a breach or default thereunder by Denselight, as a result of or in connection with the change in control of Denselight arising from the Transaction on terms reasonably acceptable to the Buyer and :

     

     

    

36 (a) if such consent or waiver is subject to any conditions, such conditions to the extent they are required to be satisfied on or prior to Closing being so satisfied to the reasonable satisfaction of the Buyer ; and (b) such consent or waiver remaining in full force and effect as at Closing and not having been amended, cancelled, revoked or withdrawn . 8. 1 0 . 7. E MPLOYMENT 1. The Buyer having received a written employment agreement with each Specified Employee in a form agreeable to the Buyer containing such confidentiality, intellectual property, non - competition and non - solicitation clauses on terms reasonably acceptable to the Buyer and incorporating such code of conduct and business ethics statements as are reasonably acceptable to the Buyer and such agreement remaining in full force and effect as at Closing and not having been amended, repudiated, rescinded or terminated (the form of such employment agreement to be agreed between the Buyer and the Seller no later than 14 days before the Closing Date) . 2. None of the Specified Employees having been terminated or having been given a notice of termination (whether for cause or otherwise) from their employment with Denselight . C APITALISATION OF I NTERCOMPANY L OAN The Buyer having received from the Seller and/or Denselight evidence that the entire outstanding intercompany loan, as of the date falling no earlier than ten Business Days prior to the Closing Date, from the Seller or any other member of the Seller’s Group to Denselight having been capitalised wholly and finally into shares in Denselight (such capitalisation, “ Intercompany Loan Capitalisation ”) . 9. S ELLER ’ S  W ARRANTIES AND U NDERTAKINGS 1. The Seller’s Warranties being true and accurate in all respects (without giving effect to any materiality qualifications contained therein) as at the date hereof and as at the Closing Date as if made on the Closing Date (except that, in each case, Warranties that are made as at a specified date shall have been true and correct only on such date), save as Disclosed . 2. The Seller having in all material respects performed or complied with each of the Seller’s undertakings in this Agreement which are required to be performed or complied by them on or prior to the Closing Date . N O M ATERIAL A DVERSE C HANGE There not having occurred any material adverse change in the business, operations, assets, position (financial, trading or otherwise) or profits of Denselight or any event or circumstance that would reasonably be likely to result in such a material adverse change excluding, in any such case, any event, circumstance or change resulting from : (a) changes in stock markets, interest rates, exchange rates, commodity prices or other general economic conditions which affects, or is reasonably likely to affect, all companies carrying on similar businesses, except to the extent that such changes have a materially disproportionate adverse effect on Denselight compared to other participants in similar businesses ; or (b) changes in laws, regulations or accounting practices .

     

     

    

37 1 1 . N O I NJUNCTION There being no decree, determination, injunction, judgement or other order entered or issued by any court or Governmental Authority of competent jurisdiction which has the effect of restraining or otherwise prohibiting consummation of the Transaction and which remains in force and effect as at the Closing Date .

     

     

    

38 B. 1. 2. 3. SELLER’S  CONDITIONS PRECEDENT The obligations of the Seller to effect the Transaction under this Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following Conditions (any of which may be waived, in writing, exclusively by Seller provided that paragraphs 1 and 3 shall only be waived by the mutual agreement of the Buyer and the Seller) : S ELLER ’ S  S HAREHOLDER  A PPROVAL The shareholders of the Seller having approved the Transaction and such approval remaining in full force and effect as at Closing . B UYER ’ S D ELIVERABLES The Seller having received from the Buyer all the documents and information as set out in the Closing Agenda including duly completed and executed instruments of share transfer of the Sale Shares to the Buyer, signed by the Buyer and undated . A PPROVAL  IN  C ANADA The grant  and  receipt,  in  terms satisfactory to the Seller, of  all  regulatory approvals,   third  party  consents,  authorisations  or  similar clearances  which are  required by  TSXV   to  approve  the  transactions contemplated herein for Closing  as  listed below:  TSXV Final Approval.

     

     

    

39 Schedule  3  - Conduct between Signing and Closing 1. 2. 3. The Seller undertakes to  ensure that at all  times during  the  Interim Period,  the   Business shall be conducted  in the manner  provided  in  this Schedule. Denselight  shall carry  on  the Business  in the  normal course. The Seller shall  ensure  that  Denselight  shall not (without  the  consent  of the  Buyer,   such consent not to be unreasonably withheld  or delayed): (a) dispose of any assets used or required for the operation of the Business, or enter into an agreement to do so ; (b) allot or issue (or agree to allot or issue) any shares or other securities (except pursuant to the Intercompany Loan Capitalisation), or repurchase or redeem (or agree to repurchase or redeem) any of its shares ; (c) pass any resolution of its members or shareholders, save as required for a transaction arising from or connected to this Agreement ; (d) borrow any sum ; (e) enter into any lease, lease hire or hire purchase agreement or agreement for payment on deferred terms that is out of the ordinary course of business of Denselight ; (f) pay any dividend or make any other distribution of its assets ; (g) provide  or  agree  to  provide  any non - contractual benefit  to  any  director,   officer,  employee  or their dependents; (h) dismiss any of its  employees (except for  the  Transferring Employees)  or   employ or  engage (or offer  to employ or  engage)  any individual; (i) create or  agree  to create any  Encumbrance  over any of  its assets  or  its   undertaking; (j) give  or  agree to give  any  financial  or  performance guarantee,  or  any similar   security  or indemnity; (k) institute, settle  or  agree to settle  any  legal proceedings; (l) grant, modify, terminate or permit the lapse of any Intellectual Property Rights or enter into any agreement relating to any such rights ; (m) incur any liabilities to the Seller, other than trading liabilities incurred in the normal course of business ; (n) enter into any agreement with any trade union or any agreement that relates to any works council, or modify any subsisting agreement ; (o) vary the terms on which it holds any of the Properties or settle any rent review ; (p) incur any capital expenditure or financial obligations, make any investments, make any changes to the compensation structure for its personnel, or enter into transactions having a value in excess of USD 100 , 000 individually or, when aggregated with any other expenditure, obligation, investment, change or transaction arising from the same or substantially the same fact, matter or circumstance, in excess of USD 200 , 000 in aggregate, without the Buyer’s prior written consent ;

     

     

    

40 (q) make any payment or incur any liability (actual or contingent) where the amount payable or incurred exceeds USD 100 , 000 individually or, when aggregated with any other payment or liability arising from the same or substantially the same fact, matter or circumstance, in excess of USD 200 , 000 in aggregate, without the Buyer’s prior written consent ; or (r) make any material changes to the accounting standards, procedures, policies or principles by reference to which its accounts are drawn up . 4. 5. 6. Denselight shall, at its own cost, maintain in force insurance policies that have limits of indemnity at least equal to and the other terms of which are no less favourable than, those policies of insurance maintained by Denselight at the date of this Agreement . Denselight shall use its best endeavours to maintain the trade and trade connections of Denselight . No amendment, other than one made solely to comply with legislative requirements, shall be made to any agreements or arrangements for the payment of pensions or other benefits on retirement : (a) to  present  or  former directors, officers  or  employees  of  Denselight; or (b) to the  dependents  of any  of those people. 7. 8. Denselight shall, at the Buyer's request and Denselight’s expense, provide the Buyer with such information or documents as it may reasonably require relating to the terms of employment or any other matter concerning any employee of Denselight, body of such employees or their representatives in the period prior to the Closing Date . Denselight shall, at Denselight’s expense, provide the Buyer with : (a) all financial information (including monthly management accounts, margin analysis, variance analysis, reasonability analysis and weekly payments approval report) which Denselight provides to the Seller (in its capacity as a shareholder of Denselight) consistent with Denselight’s past practice, as soon as reasonably practicable and no later than when such information is provided to the Seller ; (b) online remote access to view the company bank account and payments data of Denselight, as soon as reasonably practicable after the date hereof ; and (c) online remote access to view the Quickbooks accounting system of Denselight, as soon as reasonably practicable after the date hereof .

     

     

    

41 Schedule  4  - Seller’s Warranties   Part 1. General Warranties 1. P OWER TO SELL D ENSELIGHT 1. Subject to the approval pursuant to Schedule 2 , Part B, paragraph 1 , the Seller has taken all necessary action and has all requisite power and authority to enter into and perform this Agreement and the other documents referred to in it in accordance with their respective terms . 2. This Agreement and the other documents referred to in it constitute (or shall constitute when executed) valid, legal and binding obligations on the Seller in the terms of the Agreement and such other documents . 3. Compliance with the terms of this Agreement and the documents referred to in it shall  not  breach  or  constitute  a  default under any  of  the following: 1. any  provision  of the  Seller’s constitutional documents; or 2. any agreement or  instrument to  which the  Seller  is a party or  by which  it  is   bound;  or 3. any  order, judgment, decree  or other  restriction applicable  to the Seller. 4. No proceeding is currently taking place or pending or, so far as the Seller is aware, threatened, in writing, against it or any of its assets which could reasonably be expected to (a) result in the issuance of an order restraining, enjoining or otherwise prohibiting or making illegal the performance by it of its obligations under this Agreement ; or (b) have the effect of delaying, frustrating or preventing it from performing its obligations under this Agreement . 5. No Insolvency Event has occurred or is continuing in relation to the Seller . 2 S HARES IN D ENSELIGHT 1. Denselight is a  company duly incorporated  and  validly existing under  the  laws of   Singapore. 2. The Sale Shares constitute the whole of the issued share capital of Denselight and are  fully paid. 3. The Seller  is  the sole legal and beneficial  owner of the  Sale Shares. 4. Denselight  does not have any Subsidiaries. 5. The Sale Shares are free  from  all  Encumbrances  on  Closing Date. 6. No right has been granted to any person to require Denselight to issue any share capital and no Encumbrance has been created in favour of any person affecting any unissued shares or debentures or other unissued securities of Denselight . 7. No commitment has been given to create an Encumbrance affecting the Seller’s Sale Shares (or any unissued shares or debentures or other unissued securities of Denselight) or for any of them to issue any share capital and no person has claimed any rights in connection with any of those things . 8. Denselight : 1. has not agreed to acquire any securities of any corporation ;

     

     

    

42 2. is not and has not agreed to become a member of any partnership or other unincorporated association, joint venture or consortium (other than recognised trade associations) ; 3. does not have, outside its country of incorporation, any branch or permanent establishment ; or 4. has not issued any securities that are convertible into shares . 9. At no time has Denselight : 1. purchased, redeemed or repaid any of its own share capital ; or 2. given any financial assistance in contravention of any applicable law or regulation . 10. All dividends or distributions declared, made or paid by Denselight have been declared, made or paid in accordance with Denselight’s constitutional documents, all applicable legislation and any agreements or arrangements made with any third party regulating the payment of dividends and distributions . 3. C ONSTITUTIONAL AND CORPORATE DOCUMENTS 1. The copies of the constitutional and corporate documents of Denselight that have been Disclosed are true, accurate and complete in all respects and copies of all the resolutions and agreements required to be annexed to or incorporated in those documents by the applicable law are annexed or incorporated . 2. All statutory books and registers of Denselight have been properly kept, are in Denselight’s possession or control, are up - to - date, are maintained in accordance with applicable laws on a proper and consistent basis and no notice or allegation that any of them is incorrect or should be rectified has been received . 3. All returns, particulars, resolutions and other documents which Denselight is required by law to file with, or deliver to, any authority in any jurisdiction (including, in particular, any authority responsible for maintaining a register of companies) have been correctly made up and filed or, as the case may be, delivered . 4. I NFORMATION 1. All information contained in the Dataroom and all information provided by the Seller and its advisers to the Buyer and its advisers in the course of negotiating the Transaction is : (a) complete, accurate, not untrue and not misleading ; and (b) do not omit to provide any information necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading . 2. The particulars relating to Denselight in this Agreement are accurate and not misleading . 3. There is no information that has not been Disclosed which, if Disclosed, might reasonably affect the willingness of the Buyer to buy the Sale Shares on the terms of this Agreement .

     

     

    

43 5. C OMPLIANCE WITH LAWS 1. Denselight has at all times conducted its business in accordance with all applicable laws and regulations . Denselight has not received any written notice from any Governmental Authority that it is in violation of, or in default with respect to, any law of any jurisdiction in which it has operations and, so far as the Seller is aware, there is no fact, matter or circumstance that is reasonably likely to give rise to such violation or default . 2. None of the Directors or officers of Denselight has been party to the use of any of the assets of Denselight for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity or to the making of any direct or indirect unlawful payment to government officials or employees from such assets . 6. L ICENCES AND CONSENTS 1. Denselight has all necessary licenses, consents, permits and authorities required to carry on its business in the places and in the manner in which such business is carried on at the date of this Agreement, all of which are valid and subsisting . 2. So far as the Seller is aware, there is no reason why any of the licenses, consents, permits and authorities referred to in paragraph 6 . 1 above may be suspended, cancelled, revoked or not renewed on the same terms . 3. In connection with the grant from the Singapore Economic Development Board with reference number S 16 - 1220 - RISC - II (T 1 ) and the grant from the Singapore Economic Development Board under the Industrial Postgraduate Programme with reference number S 16 - 1508 - IPP - II, so far as the Seller is aware, all of Denselight’s undertakings and obligations under such grants up to the date of this Agreement have been fully satisfied and all potential liabilities under such grants have been disclosed in the financial statements of Denselight (including in the Accounts and in the Management Accounts) . Besides the aforementioned grants, Denselight does not have any outstanding government grants from any Governmental Authority under which it has any outstanding liabilities, undertakings or obligations . 7. I NSURANCE 1. The insurance policies maintained by or on behalf of Denselight at the date of this Agreement : 1. provide full indemnity cover against all Losses and liabilities including business interruption and other risks that are normally insured against by a person carrying on the same type of business as Denselight ; and 2. are in full force and effect, are not void or voidable and nothing has been done or not done which could make any of them void or voidable and Closing will not terminate, or entitle any insurer to terminate, any such policy . 2. The particulars of the insurance policies Disclosed in the Dataroom are accurate and not misleading . There are no material outstanding claims under, or in respect of the validity of, any of those policies and so far as the Seller is aware, there are no circumstances likely to give rise to any claim under those policies . 3. No written notice of cancellation or non - renewal of the insurance policies maintained by or on behalf of Denselight at the date of this Agreement has been received .

     

     

    

44 8. D ISPUTES AND I NVESTIGATIONS 1. Neither Denselight and the Seller, nor any person for whom Denselight is vicariously liable : 1. is engaged in any litigation, administrative, mediation or arbitration proceedings or other proceedings or hearings before any statutory or government body, department, board, agency or authority (except for debt collection in the normal course of business) which has been served on Denselight ; or 2. is the subject of any investigation, inquiry or enforcement proceedings by any government, administrative or regulatory body . 2. No director of Denselight is, to the extent that it relates to the business of Denselight, engaged in or subject to any of the matters mentioned in paragraph 8 . 1 above which has been served on the Director . 3. No proceedings, investigation or inquiry as are mentioned in paragraph 8 . 1 or paragraph 8 . 2 above have been threatened or are pending which have been served on Denselight, and there are no circumstances likely to give rise to any such proceedings, investigation or inquiry . 4. Denselight is not affected by any existing or pending judgments or rulings and have not given any undertakings arising from legal proceedings to any court, Governmental Authority, agency, regulator or third party which has been served on Denselight . 9. D EFECTIVE PRODUCTS AND SERVICES 1. Denselight has  not manufactured  or  sold  any  products  which  were,  at the  time they   were  manufactured  or  sold,  faulty  or  defective  or  did  not  comply with: 1. any  warranties  or  representations expressly  or  impliedly  made  by  or on  behalf   of  Denselight; or 2. all laws,  regulations, standards  and  requirements applicable to  the products. 10. A NTI - TRUST 1. The definition in this paragraph applies in this Agreement : Anti - trust Law : the national and directly effective legislation of any jurisdiction which governs the conduct of companies or individuals in relation to restrictive or other anti - competitive agreements or practices (including, but not limited to, cartels, pricing, resale pricing, market sharing, bid rigging, terms of trading, purchase or supply and joint ventures), dominant or monopoly market positions (whether held individually or collectively) and the control of acquisitions or mergers . 2. Denselight is not engaged in any agreement, arrangement, practice or conduct which amounts to an infringement of the Anti - trust Law of any jurisdiction in which Denselight conducts business and no Director is engaged in any activity which would be an offence or infringement under any such Anti - trust Law .

     

     

    

45 11. C ONTRACTS 1. The definition in this paragraph applies in this Agreement . Material Contract : an agreement or arrangement to which Denselight is a party and which is of material importance to the business, profits or assets of Denselight or involves consideration payable by or to Denselight in excess of SGD 30 , 000 , singly . 2. All Material Contracts have been Disclosed . 3. Except for the agreements and arrangements Disclosed, Denselight is not a party to or subject to any agreement or arrangement which : 1. is not  in  the ordinary and  usual course  of Business of Denselight; 2. restricts  the  freedom  of  Denselight to  carry on the whole  or  any part of  the   Business in  any  part  of  the  world in  such manner  as  it  thinks fit; 3. involves agency  or distributorship; 4. involves partnership, joint venture, consortium, joint development,   shareholders  or  similar arrangements; 5. requires Denselight to  pay  any  commission, finders' fee, royalty  or  the like; 6. is not on  arm's length terms; or 7. is for the supply of goods and/or services by or to Denselight on terms under which retrospective or future discounts, price reductions or other financial incentives are given . 4. Each Material Contract is in full force and effect and binding on the parties to it . Denselight has not defaulted under or breached a Material Contract and, so far as the Seller is aware : 1. no other party to a Material Contract has defaulted under or breached such a contract ; and 2. no such default or breach by Denselight or any other party is likely or has been threatened . 2. No notice of termination of a Material Contract has been received or served by Denselight and there are no grounds for determination, rescission, avoidance, repudiation or a material change in the terms of any such contract . 12. F INANCE AND GUARANTEES 1. Full particulars of all money borrowed by Denselight (including full particulars of the terms on which such money has been borrowed) have been Disclosed . Except for such financial indebtedness Disclosed, there is no financial indebtedness in the nature of borrowings of Denselight . 2. Denselight has no outstanding loan capital and has not loaned any money that has not been repaid and there are no debts owing to Denselight other than debts that have arisen in the normal course of the Business . 3. With the exception of the Capital Equipment, Installation and Improvement Fees referred to in Clause 6 which shall be repaid by Denselight to the Seller in accordance with this Agreement, Denselight has no outstanding loan capital and has not loaned any money that has not been repaid from the Seller or the Seller's Group .

     

     

    

46 4. Denselight has not : 1. factored any of its debts or discounted any of its debts or engaged in financing of a type which would not need to be shown or reflected in the Accounts ; or 2. waived any right of set - off it may have against any third party . 5. Denselight is not subject to any arrangement for receipt or repayment of any grant, subsidy or financial assistance from any Governmental Authority . 6. Except for the Unlimited Guarantee dated 17 May 2019 and the Security Deed dated 17 May 2019 , each given in favour of Espresso Capital Ltd, Denselight has not given any guarantee, indemnity or security interest in respect of any obligation or liability of any person which remains outstanding . 13. I NSOLVENCY 1. Denselight : 1. is not insolvent or unable to pay its debts within the meaning of the insolvency legislation applicable to Denselight ; and 2. has not stopped paying its debts as they fall due . 2. No step has been taken in any jurisdiction to initiate any process by or under which : 13 . 2 . 1 the ability of the creditors of Denselight to take any action to enforce their debts is suspended, restricted or prevented ; 2. some or all of the creditors of Denselight accept, by agreement or in pursuance of a court order, an amount less than the sums owing to them in satisfaction of those sums with a view to preventing the dissolution of Denselight ; 3. a person is appointed to manage the affairs, business and assets of Denselight on behalf of its creditors ; or 4. the holder of a charge over all or any of the assets of Denselight is appointed to control the business and/or all or any assets of Denselight . 13 . 3 No process has been instituted which could lead to Denselight being dissolved and its assets being distributed among its creditors, shareholders or other contributors . 14. A SSETS 1. Denselight is the full legal and beneficial owner of and has good marketable title to all the assets included in the Accounts and any assets acquired since the Accounts Date, and all other assets used by Denselight except for those disposed of since the Accounts Date in the normal course of business . 2. The assets of Denselight comprise all the assets necessary for the continuation of the Business in the manner in which it is carried on at the date of this Agreement . 3. The plant, machinery, equipment and vehicles and other assets used in connection with the Business: 1. are in  good working order; 2. have  been regularly  and  properly  maintained;

     

     

    

47 3. are  capable  and will  continue  to  be capable  of  doing  the work  for  which  they   were designed; 4. are adequate  for,  and are not  surplus to,  the current or  proposed   requirements  of Denselight; 5. are owned  by  Denselight with  good  and valid title,  free  from  Encumbrances;   and 6. are in the  possession or under  the  control  of Denselight. 15. E NVIRONMENT 1. The definitions in this paragraph apply in this Agreement . Environment : the natural and man - made environment including all or any of the following media : air (including air within buildings and other natural or man - made structures above or below the ground), water, land, and any ecological systems and living organisms (including man) supported by those media . EHS Laws : all applicable laws, statutes, regulations and legislation in Singapore and all relevant judgments, decisions and injunctions of any court or tribunal in Singapore, and legally binding codes of practice and guidance notes to the extent that they relate to or apply to the Environment or to the health and safety of any person in Singapore which are under the purview of the Ministry of Environment and Water Resources, the National Environment Agency of Singapore and the Singapore Civil Defence Force and any other Governmental Authority under applicable laws (in particular the Environmental Protection and Management Act ( Cap . 94 A) and the Environmental Public Health Act ( Cap . 95 )) . EHS Matters : all matters relating to the occurrence of the following in Singapore which will adversely impact the Business of Denselight and which are not rectifiable by Denselight (such that Denselight would not be subject to any liability or penalty, monetary or otherwise) within 7 days from the receipt by Denselight of written notice of such matters from the Ministry of Environment and Water Resources, the National Environment Agency of Singapore and/or the Singapore Civil Defence Force : (f) (a) material pollution  or  contamination  of the Environment; (b) the  presence, disposal, release, spillage, deposit, escape, discharge, leak,   migration  or  emission of Hazardous Substances  or Waste; (c) the material  exposure  of  any person to  any  Hazardous Substances  or Waste; (d) the health and safety of any person being materially affected, including any major accidents, injuries, illnesses and diseases ; (e) the creation or existence of any noise, vibration, odour, radiation, common law or statutory nuisance or other adverse impact on the Environment which substantially exceeds the limits allowed under applicable Singapore laws and regulations ; or the condition, protection, maintenance, remediation, reinstatement, restoration or replacement of the Environment or any part of it . Harm:  harm to the  Environment,  and  in  the case of a man, this  includes offence   caused to  any of  his senses  or  material harm to his property.

     

     

    

48 Hazardous Substances : any material, substances or organism which, alone or in combination with others, is capable of causing Harm, including radioactive substances and materials containing asbestos which substantially exceeds the limits allowed for these substances and materials and organisms under applicable Singapore laws and regulations . Waste : any waste, including any by - product of an industrial process and anything that is discarded, disposed of, spoiled, abandoned, unwanted or surplus, irrespective of whether it is capable of being recovered or recycled or has any value . 1. Denselight has at all times operated in material compliance with all EHS Laws in force from time to time and there are no facts or circumstances that may lead to any breach of or liability under any EHS Laws or any claim or liability in respect of EHS Matters which are not rectifiable by Denselight (such that Denselight would not be subject to any liability or penalty, monetary or otherwise) within 7 days of the receipt by Denselight of written notice of such matters from any Governmental Authority in relation to such liability . 2. There are no Hazardous Substances at, on or under, nor have any Hazardous Substances been emitted, escaped or migrated from the Property in contravention of the EHS laws . 3. Denselight has not or, to the best of the knowledge and information of Denselight and the Seller, is not likely to have any actual or potential liability under any EHS Laws which are not fully rectifiable by Denselight (such that Denselight would not be subject to any liability or penalty, monetary or otherwise) within 7 days of the receipt of written notice in relation to such liability . 16 I NTELLECTUAL PROPERTY 1. The definition in this paragraph applies in this Agreement . Intellectual Property Rights : patents, utility models, rights to inventions, copyright and related rights, trademarks and service marks, business names and domain names, rights in get - up and trade dress, goodwill and the right to sue for passing off or unfair competition, rights in designs, rights in computer software, database rights, rights to use, and protect the confidentiality of, confidential information (including know - how and trade secrets), mask works, and all other intellectual property rights, in each case whether registered or unregistered and including all applications and rights to apply for and be granted, renewals or extensions of, and rights to claim priority from, such rights and all similar or equivalent rights or forms of protection which subsist or will subsist now or in the future in any part of the world . Know - how : confidential, industrial and/or commercial information and techniques in any form including drawings, formulae, test results, reports, project reports and testing procedures, instruction and training manuals, tables of operating conditions, market forecasts, lists and particulars of customers and suppliers . “ Know - how ” shall be deemed to include all information, materials, user documentation and training documents relating to any and all aspects of the Intellectual Property Rights set out in Schedule 5 .

     

     

    

49 2. The Intellectual Property Rights and the processes employed by Denselight do not and did not infringe any rights or interests of third parties (including Intellectual Property Rights) and Denselight’s use or commercialisation of such Intellectual Property Rights or any part thereof in a manner consistent with the manner they were used or commercialized by Denselight in the last three years does not and will not, infringe any Intellectual Property Rights or other proprietary right of any third party, constitute misappropriation or unlawful disclosure or use of any third party’s trade secrets or confidential information or give rise to any liability to pay royalty or other compensation . 3. Complete and accurate particulars are set out in Part 1 and Part 2 of Schedule 5 respectively of all registered Intellectual Property Rights (including applications for such rights) and material unregistered Intellectual Property Rights owned, used or held for use by Denselight . 4. Except as Disclosed, Denselight is the sole legal and beneficial owner of (or applicant for) the Intellectual Property Rights set out in Part 1 and Part 2 of Schedule 5 , free from all Encumbrances . 5. Denselight does not require any Intellectual Property Rights other than those set out in Part 1 and Part 2 of Schedule 5 in order to carry on the Business . Schedule 5 collectively constitute all of the Intellectual Property Rights necessary for Denselight’s conduct of or use for, its business in the manner in and to the extent to which they are presently conducted without the need for Denselight to acquire or license any other Intellectual Property Rights . 6. The Intellectual Property Rights set out in Part 1 and Part 2 of Schedule 5 are valid, subsisting and enforceable and nothing has been done or not been done as a result of which any of them has ceased or is likely to cease to be valid, subsisting or enforceable . In particular : 1. all application and renewal fees and other steps required for the maintenance or protection of such rights have been duly paid or taken ; 2. all confidential information (including know - how and trade secrets) owned or used by Denselight has been kept confidential and has not been disclosed to third parties (other than parties who have signed written confidentiality undertakings in respect of such information, details of which are set out in the Disclosure Letter) ; 3. to the best of the knowledge and information of Denselight and the Seller, no mark, trade name or domain name identical or similar to any such rights has been registered or is being used by any person in the same or a similar business to that of Denselight, in any country in which Denselight has registered or is using that mark, trade name or domain name ; 4. there are and have been no claims, challenges, disputes or proceedings, pending or, to the best of the knowledge and information of Denselight and the Seller, threatened, in relation to the ownership, validity or use of such rights ; and

     

     

    

50 16 . 6 . 5 Denselight has not transferred ownership of or granted any exclusive rights in, and will not be obliged to transfer ownership of or grant any exclusive rights in the Intellectual Property Rights set out in Part 1 and Part 2 of Schedule 5 to any third party . No licenses to any such Intellectual Property Rights had been granted by Denselight to any third party save for those non - exclusive licenses granted in the ordinary course of Denselight’s business or otherwise as Disclosed . 7. Nothing is due to be done within thirty days of this Agreement, the omission of which would jeopardise the maintenance or prosecution of any of the Intellectual Property Rights owned or used by Denselight, which are registered or the subject of an application for registration . 8. Save as Disclosed, to the best of the knowledge and information of Denselight and the Seller, there has been no material infringement by any third party of any Intellectual Property Rights set out in Part 1 and Part 2 of Schedule 5 , nor any third party material breach of confidence or actionable act of unfair competition in relation to the business or assets of Denselight, and no such material infringement, material breach of confidence or actionable act of unfair competition is current or anticipated . 9. Save as Disclosed, a Change of Control of Denselight will not result in the termination of or materially affect any Intellectual Property Rights set out in Schedule 5 . 10. Save as Disclosed, the activities of Denselight and of any licensee of Intellectual Property Rights granted by Denselight : 1. have not materially infringed, do not materially infringe and, to the best of the knowledge of Denselight and the Seller, are not likely to materially infringe the Intellectual Property Rights of any third party ; 2. have not constituted, do not constitute and, to the best of the knowledge of Denselight and the Seller, are not likely to constitute any material breach of confidence, passing off or actionable act of unfair competition ; and 3. have not given and do not give rise to any obligation to pay any royalty, fee, compensation or any other sum whatsoever to a third party . 11. Know - how : There has been and is no misuse of Know - how by Denselight and Denselight has not made any disclosure of Know - how to any person except properly and in the ordinary and usual course of business and on the basis that such disclosure is to be treated as being of a confidential character .

     

     

    

51 17 E MPLOYMENT 1. The name of each person who is a Director of Denselight as at the date of this Agreement is set out in Schedule 1 . 2. The details of all individuals employed (including employees of Denselight who are on secondment, maternity leave or other statutory leave or absent due to ill - health or for any other reason) by Denselight and the principal terms of their contracts and details of all individuals who are providing services to Denselight under an agreement which is not a contract of employment with Denselight (including, in particular, where the individual acts as a consultant or is on secondment from an employer which is not a member of the Seller's Group) and the particulars of the terms on which the individual provides services have been Disclosed to the Buyer . 3. With the exception of the individuals set out in the Disclosure Letter, no notice to terminate the contract of employment of any employee of Denselight (whether given by the relevant employer or by the employee) is pending, outstanding or threatened and, so far as the Seller is aware, no dispute is otherwise outstanding between Denselight and any of its current or former employees relating to their employment, its termination or any reference given by Denselight regarding them . 4. No offer of employment has been made by Denselight to any individual which has not yet been accepted or which has been accepted but where the individual's employment has not yet started . 5. Denselight is not a party to, bound by or proposing to introduce any redundancy payment scheme in addition to statutory redundancy pay, nor is there any agreed procedure for redundancy selection . 6. Denselight is not a party to, bound by or proposing to introduce any incentive scheme (including, without limitation, any share option arrangement, profit sharing, commission or bonus scheme) . 7. Denselight has not incurred any material actual or contingent liability in connection with any termination of employment of its employees (including redundancy or severance payments), or for failure to comply with any order for the reinstatement or re - engagement of any employee . 8. Denselight has not incurred any material liability for failure to provide information or to consult with employees under any applicable employment legislation in Singapore . 9. Denselight has not made or agreed to make a payment, or provided or agreed to provide a benefit to a present or former director, officer or employee, or to their dependents in connection with the actual or proposed termination or suspension or variation of an employment contract . 10. True, complete and accurate copies of the following have been Disclosed : 1. all contracts, handbooks, policies and other documents which apply to the employees ; and 2. all agreements or arrangements with any trade union, employee representative body or body of employees and their representatives (whether binding or not) and details of any unwritten agreements or arrangements which may affect any employee .

     

     

    

52 11. Denselight is not involved in any material industrial or trade dispute or negotiation regarding a claim with any trade union or other group or organisation representing employees and there is nothing likely to give rise to such a dispute or claim . 12. So far as the Seller is aware, no liability has been incurred by Denselight for breach of any written contract of service or for services, for redundancy payments (including protective awards), loss of office or for compensation for wrongful dismissal or unfair dismissal or for failure to comply with any order for the reinstatement or re - engagement of any employee . 13. Denselight complies with all material obligations under all written employment contracts, all written codes of conduct and practice relevant to conditions of service and all documented relations between Denselight and its employees . All social security and insurance related payments in respect of all past and present Denselight employees (including with respect to the Singapore Central Provident Fund) have been fully paid and accrued according to Singapore laws . 14. Denselight has entered into employment contracts with each employee on such terms substantially set out in the sample employment contracts included in the Dataroom, LDD Folder, documents titled “LDD 17 a Factory staff template” or “LDD 17 b Mark V Dyson LOO 12 . 06 . 2018 – Sample” (as applicable to the role and function of such employee), with such modifications which are suitable for the role and function of such employee . Where relevant, Denselight has included in employment contracts with each employee such terms as are required to (a) ensure that Denselight’s confidential information are safeguarded from disclosure and (b) ensure that any intellectual property rights created by such employee during his/her employment with Denselight are owned fully and finally by Denselight (or its lawful assigns) . 18 P ROPERTY 1. The definition in this paragraph apply in this Agreement . Properties : all those properties identified in Schedule 6 and Property means any one of them or any part or parts of them . 2. Schedule 6 sets forth true, complete and accurate particulars of, and includes all information needed to identify, the Properties owned, used or occupied by Denselight . Except for the Properties, Denselight (a) does not owns any real property or lease, sub - lease, license or otherwise occupies any real property as a lessee, sub - lessee, licensee or otherwise ; and (b) has not entered into a written agreement or other binding commitment to buy or sell or otherwise acquire, or lease, any land or premises or any other related real property interest that remains outstanding in any respect . 3. All the Properties are actively used by Denselight in connection with the Business . 4. The Property is leased by JTC Corporation to Denselight and pursuant to the lease agreement, Denselight is solely legally and beneficially entitled and has a good and marketable title, to the Properties . The Properties are each exclusively occupied by Denselight .

     

     

    

53 5. Save as Disclosed, the Properties are free from claims, liabilities, third party rights, private rights to restrict the use of any Property (other than any right to restrict use in accordance with the terms of any lease under which a Property is held), rights of occupation, options, rights to acquire, rights of first refusal, financial obligations (including public financial obligations), security interests, public rights and public restrictions . 6. There are appurtenant to each Property, all rights necessary for their current use and enjoyment (without restriction as to time or otherwise) . Access to each Property is over public roads maintained at public expense and such roads immediately about each Property at each point where access is gained . 7. Denselight has not received or is aware of any notice, order or proposal, which would adversely affect the value or use or enjoyment of any of the Properties, or access to or from any of them . 8. There are currently no material disputes relating to or affecting any of the Properties . 9. The current use of each of the Properties is authorised under the applicable law and regulations in Singapore and any permissions authorising that use are unconditional, permanent and not personal . There has been no breach of any applicable law or regulation, or default under any agreement, in respect of any of the Properties and, so far as the Seller is aware, there is no fact, matter or circumstance that is reasonably likely to give rise to any such breach or default . 10. Each of the Properties is in a good state of repair and condition and is fit for the current use . 19 A CCOUNTS 1. The Accounts have been prepared in accordance with the accounting standards, policies, principles and practices generally accepted in Singapore and in accordance with the law of Singapore . 2. The Accounts have been audited by an auditor of good repute qualified in Singapore and the auditor has given an auditor's certificate without qualification in respect of the Accounts . 3. The Accounts : 1. make proper and adequate provision or reserve for all bad and doubtful debts, obsolete or slow - moving stock and for depreciation on fixed assets ; 2. do not overstate the value of current or fixed assets ; 3. do not understate, or fail to disclose fully, any liabilities (whether actual or contingent) ; and 4. are not affected by any unusual or non - recurring items . 4. The Accounts give a true and fair view of the state of affairs of Denselight as at the Accounts Date and of the profit and loss of Denselight for the financial year ended on that date . 5. The Accounts contain either provision adequate to cover, or full particulars in notes of, all Taxation (including deferred taxation) and other liabilities (whether quantified, contingent, disputed or otherwise) of Denselight as at the Accounts Date .

     

     

    

54 6. The Accounts have been filed in accordance with the requirements of applicable law . 7. The Accounts have been prepared on a basis consistent with the audited accounts of Denselight for the two prior accounting periods without any change in accounting policies used . 8. The Management Accounts have been prepared on a basis consistent with that employed in preparing the Accounts and fairly represent, and do not misstate, the assets and liabilities and the profit and losses of Denselight as at, and for such period ending on, such date on which they have been prepared . 9. There are no liabilities or obligations of Denselight, whether accrued, absolute, determined or contingent that would be required to be reflected or reserved against, except for liabilities or obligations disclosed and provided for in the Accounts or Management Accounts (or in the notes thereto) . 10. The intercompany loans from the Seller and members of the Seller’s Group to Denselight are non - trade in nature, unsecured and interest - free . 20 F INANCIAL AND OTHER RECORDS 1. All financial and other records of Denselight : 20 . 1 . 1 have been properly prepared and maintained ; 20 . 1 . 2 constitute an accurate record of all matters that ought to appear in them ; 20 . 1 . 3 do not contain any material inaccuracies or discrepancies ; and 20 . 1 . 4 are in the possession of Denselight . 2. No notice has been received or allegation made that any of the records referred to in paragraph 20 . 1 above are incorrect or should be rectified . 3. All statutory records, including the accounting records, required to be kept or filed by Denselight have been properly kept or filed and comply with all requirements of applicable legislation . 4. Denselight maintains such financial internal controls, policies and procedures over its disclosures and financial reporting, which : (a) are reasonably designed to ensure that information required to be disclosed by Denselight is recorded and reported on a timely basis ; (b) are reasonably effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the Singapore Financial Reporting Standards in force from time to time ; (c) ensure that records are maintained in reasonable detail so as to accurately and fairly reflect the transactions and disposition of assets of Denselight ; (d) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with the Singapore Financial Reporting Standards in force from time to time ; and (e) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use or disposition of Denselight’s assets that could have a material effect on its financial statements .

     

     

    

55 22 21 A GREEMENTS  WITH  R ELATED  P ARTIES , ETC 1. There is no outstanding indebtedness (other than trade credit arising in the normal course of business) owing by Denselight, on the one hand, to any member of the Seller’s Group or any Director or any persons or entities controlled by any of them, on the other hand (or vice versa) . 2. There is no outstanding contract or transaction between Denselight, on the one hand, and any member of the Seller’s Group or any Director or any persons or entities controlled by any of them, on the other hand except for the investment by Rajan Rajgopal in certain Convertible Debentures offered by the Seller . 3. All loans, debts and borrowings given by any member of the Seller’s Group to Denselight prior to the Closing Date were properly and validly authorised and consented to by the relevant member of the Seller’s Group . C HANGES SINCE  A CCOUNTS D ATE Since  the  Accounts Date: 22 .1 . 1 22 .1 . 2 22 .1 . 3 Denselight has  conducted  the  Business in the normal  course and as a  going concern; there has  been no material adverse  change  in  the  turnover, financial   position  or  prospects  of  Denselight; and none of  the  events  set  out  in  Schedule  3  have occurred  or  taken   place,  except pursuant to this Agreement.

     

     

    

56 Part  2 Tax Warranties 1. Payment of Tax All Taxes which have been or are deemed to have been assessed or imposed on Denselight or the Sale Shares in Singapore, or have been required to be withheld from any payment made by Denselight to another person : (a) which are  due  and  payable,  have  been  paid  by  the  final  date  for payment  by   Denselight or  Seller (where applicable); and (b) which are  not yet payable but  become  payable before Closing, shall be  paid   by  the  due date. The Seller in  relation to  Denselight have not entered into any agreement or   arrangement  which  extends  the  period for assessment  or  payment  of any Taxes. 2. Withholding Tax To the best of the knowledge and information of the Seller, any obligation on Denselight under any relevant Singapore law relating to Tax to withhold amounts at source which has been expressly made known to Denselight and the Seller has been complied with . 3. No additional taxes To the best of the knowledge and information of the Seller, with respect to any period prior to Closing, the Seller and Denselight have not and will not become liable to pay any additional Taxes, interest, penalty, charge, fee or other like amount imposed or made on or in respect of the failure to file a return in respect of or to pay any Taxes . 4. Copies Accurate All copies of any information, notices, computation or returns submitted by Denselight in respect of any Tax under Singapore Law which have been supplied by the Seller or its advisers to the Buyer are true and complete and updated copies of the originals . 5. Records of assets Denselight maintains and has retained for the period required by law and will provide to the Buyer all records and accounts required to be kept under the Income Tax Act (Cap . 134 ) of Singapore .

     

     

    

57 6. Stamp duty To the best of the knowledge and information of the Seller, all transfer, sales, use, documentary, registration, stamp duty and other similar tax payable in Singapore to the Inland Revenue Authority of Singapore in respect of any agreement or transaction to which the Seller in relation to Denselight is or has been a party, or by which Denselight derives, has derived or will derive a substantial benefit or acquire a property in Singapore, have been duly paid . No lease or other document chargeable with stamp duty is unstamped or insufficiently stamped . No event has occurred as a result of which any duty has or will become payable, from which Denselight may have obtained relief or which has not been duly paid by Denselight . 7. Unabsorbed Tax Losses Denselight has in its Accounts unabsorbed tax losses . To the best of the knowledge and information of the Seller, in connection with the change in majority shareholder of Denselight to the Seller in 2016 : (c) (a) the business of Denselight remained substantially the same following such change ; (b) such change was not for the purpose of deriving tax benefits or obtaining tax advantage ; and there is no fact, matter or circumstance that is reasonably likely to give rise to the Inland Revenue Authority of Singapore revoking the approval granted to Denselight in 2016 to carry forward such unabsorbed tax losses . 8. Capitalisation of Intercompany Loan To the best of the knowledge and information of the Seller, with respect to the Intercompany Loan Capitalisation, neither the Seller nor Denselight is or will become liable to pay any additional Taxes, interest, penalty, charge, fee or other like amount imposed or made on or in respect of the failure to file a return in respect of or to pay any Taxes .

     

     

    

58 Description Number Cu r re  nt Status Active Patents 1 Active I nactive Patents - g r anted patents - pub l ishe  d patents 9 44 L a  pse  d  as  t  he   y  had  not   been rene w ed T ot a l 54 No . Tit l e Count r y Patent  No . Date  of Grant Status Active  G r anted  P a t e n t s 1 Optoe  l ect     ro    nic Asse mb l y   fo r Opt ica l Coup l ing USA US10107975 10 / 23 / 18 Active Sc h e dul e 5 - Int e ll ec t u a l P ro p e r ty R i g h ts P a r t 1 . Reg i s t e r ed Int e ll ect u a l P roperty R i g h ts De nse li ght ' s o w ned patents number a tota l of 54 , w h i ch co v e rs va r i o us aspects of Eng i nee r i ng and Manufacturing Process F l o w of photonics product s , including ( 1 ) mate r i a l st r uct ure , and de v i ce des i g n and simu l atio n , ( 2 ) mate r i a l s processing and device w afer fa b r icat i o n , ( 3 ) device asse mb ly, test and packaging , ( 4 ) re l ia b il it y and qua l i t y assura nce , and ( 5 ) product characte r i zat i o n and a pp li cat i o n test . Th i s i s o rga n i zed into Act i v e patents and I nactive Pate nts , i . e . , those that w e r e granted and pub li she d but have l a pse d as a res u l t of not ha v i ng been rene w ed , as fo l l o w s : RE D A C TE D  - COM PETITI V EL Y S EN S ITI V E INF O R M ATI O N

     

     

    

59 REDACTED  - COMPETITIVELY SENSITIVE INFORMATION

     

     

    

60 REDACTED  - COMPETITIVELY SENSITIVE  INFORMATION

     

     

    

61 REDACTED  - COMPETITIVELY  SENSITIVE INFORMATION

     

     

    

62 REDACTED  - COMPETITIVELY SENSITIVE INFORMATION

     

     

    

Part 2 . Material unregistered Intellectual Property Rights Unregistered IPR is managed as know - how and trade secret which includes, but is not limited to all aspects of design, masks and mask works, fabrication, assembly and build, test and characterization, reliability management and applications of photonics devices, components, assemblies and systems . (a) 63

     

     

    

64 No . I t em Descrip ti o n 1 Address 6  Chang i  North  Street  2 ,  S i ng  apore 498831 2 Muk i m Number A20524A 3 L essor J TCCorpo r at i on 4 L essee Dense li ght  Sem i conduct  o r s  Pte Ltd 5 Terms Standa r d J TCterms Sc h  e dul  e  6  - Parti c ul arsof  th  e Pr o p ert i es

     

     

    

65 Schedule  7  - Tax Covenant 1. I NTERPRETATION The following definitions and rules of interpretation apply in this Tax Covenant . Definitions : Event : includes (without limitation), the earning, receipt or accrual for any Tax purpose of any income, profit or gains, the incurring of any Loss or expenditure, and any transaction (including the execution and completion of this Agreement), event, act or omission whatsoever, and any reference to an Event occurring on or before a particular date shall include Events that, for Tax purposes, are deemed to have, or are treated or regarded as having, occurred on or before that date . Liability for Tax: (a) any liability of Denselight to make an actual payment of, or in respect of, or on account of, Tax whether or not the same is primarily payable by Denselight and whether or not Denselight has, or may have, any right of reimbursement against any other person, in which case, the amount of the Liability for Tax will be the amount of the actual payment ; (b) the loss of or failure to obtain, for any reason, any right to a repayment of tax that has been taken into account in the Accounts, in which case, the amount of the Liability for Tax will be the amount of the repayment ; and (c) the use or setting off of any Relief arising to Denselight after Closing in circumstances where, but for such set off or use, Denselight would have had a liability to make a payment of or in respect of Tax for which the Buyer would have been able to make a claim against the Seller under this Tax Covenant, in which case, the amount of the Liability for Tax will be the amount of Tax for which the Seller would have been liable but for the setting off or use . 2. Relief : includes any loss, relief, allowance, credit, exemption or set off for Tax or any deduction in computing income, profits or gains for the purposes of Tax and any right to a repayment of Tax (including any repayment supplement or interest in respect of it) or to a payment in respect of Tax . Tax : all forms of tax and charges, duties, imposts, contributions, levies, withholdings or liabilities wherever chargeable in Singapore and any penalty, fine, surcharge, interest, charges or costs relating to it . Tax Claim : any assessment, notice, demand, letter or other document issued or action taken by or on behalf of the Inland Revenue Authority of Singapore or equivalent Tax Authority in Singapore, self - assessment or other occurrence from which it appears that Denselight or the Buyer is or may be subject to a Liability for Tax . Tax Authority : means the Inland Revenue Authority of Singapore or any official authority, body or official authorised under Singapore Law to impose, assess or collect Tax in Singapore or elsewhere . References to gross receipts, income, profits or gains earned, accrued or received shall include any gross receipts, income, profits or gains deemed, for any Tax purpose, to have been or treated or regarded as earned, accrued or received .

     

     

    

66 3. 4. Any stamp duty charged on any document (or in the case of a document that is outside Singapore, any stamp duty that would be charged on the document if it were brought into Singapore) that is necessary to establish the title of Denselight to any asset, and any interest, fine or penalty relating to the stamp duty, shall be deemed to be a liability of Denselight to make an actual payment of Tax because of an Event arising on the last day on which it would have been necessary to pay the stamp duty to avoid any liability to interest or penalties arising on it . C OVENANT Subject to the provisions of this Tax Covenant, the Seller covenants to pay to the Buyer an amount equal to any : (a) Liability for Tax resulting from, or by reference to, any Event occurring on or before Closing involving Denselight on or before Closing (including any Event in connection with the Intercompany Loan Capitalisation), whether or not that liability was discharged on or before Closing ; (b) Liability for Tax which arises solely due to the relationship for Tax purposes before Closing of Denselight with any person, whether arising before or after Closing ; and (c) Costs and expenses (including legal costs on a full indemnity basis), properly incurred by the Buyer or Denselight in connection with any Liability for Tax, any Tax Claim or taking or defending any action under this Schedule . 5. P AYMENT DATE AND INTEREST Payment by  the  Seller in respect  of any  liability under  this  Schedule  must  be made  in cleared  and immediately available funds on: (a) in the case of a Liability for Tax that involves an actual payment of or in respect of Tax, the later of seven Business Days before the due date for payment and seven Business Days after the date on which the Buyer serves notice on the Seller requesting payment ; (b) in a case that falls within paragraph (c) of the definition of Liability for Tax, the date on which the Tax saved by Denselight is or would have been required to be paid to the relevant Tax Authority ; or (c) in any other case, seven Business Days following the date on which the Buyer serves notice on the Seller requesting payment, 6. but in each case no later than the due date as stated in the notice issued by the Tax Authority . If any amount due from the Seller under this Tax Covenant is not paid on the date specified in paragraph 5 , then, in addition to the extent that the Seller’ liability under paragraph 4 includes interest and penalties to compensate the Buyer for the late payment, the amount due shall bear interest (to accrue on a daily basis before and after any judgment) at the rate of 2 % per annum above DBS Prime Lending Rate, compounded monthly on the last day of each calendar month ; from the day following the due date up to, and including, the day of actual payment of those sums .

     

     

    

67 7. E XCLUSIONS The covenant contained in paragraph 4 above shall not cover any Liability for Tax to the  extent that: (a) specific provision or reserve (other than a provision for deferred tax) for the liability is made in the Accounts ; (b) the Liability for Tax was paid on or before the date of the Accounts and the Accounts reflected that payment ; (c) it arises or is increased only as a result of any change in the law or rates of Tax (other than a change targeted specifically at countering a tax avoidance scheme) coming into force after Closing or the withdrawal of any extra - statutory concession previously made by a Tax Authority after Closing (provided that this paragraph 7 (c) will not apply to any payment under paragraph 4 ) ; and (d) the Buyer is compensated for the Liability for Tax under any other provision of this Agreement . 8. L IMITATIONS (a) The liability of the Seller under paragraph 4 will terminate on the fifth ( 5 th) anniversary of the Closing Date provided that the liability of the Seller under paragraph 4 , and under this Agreement, for fraud, intentional misrepresentation or willful intent to evade tax, shall not be limited or excluded notwithstanding anything in this Agreement . (b) The Limitations on Claims as set out in Clause 9 of this Agreement shall not apply to any claims and payments in relation to Tax Covenants under this Schedule 7 . 9. R ECOVERY FROM THIRD PARTIES (a) Where the Seller has paid an amount under paragraph 4 for any Liability for Tax and the Buyer or Denselight recovers from some other person that is not the Buyer or Denselight any amount for any Liability for Tax, the Buyer shall or shall procure that Denselight shall account to the Seller for the lesser of : (ii) (i) any amount recovered (including any related interest or related repayment supplement) less any Tax suffered in respect of that amount and any costs and expenses incurred in recovering that amount ; and the amount paid by the Seller under paragraph 4 in respect of the Liability for Tax in question . (b) It has been Disclosed to the Buyer that Denselight has in its Accounts unabsorbed tax losses . To the best of the knowledge and information of Denselight and the Seller, it has been Disclosed to the Buyer that there is a possibility that the Inland Revenue Authority of Singapore will deem these unabsorbed tax losses void and inapplicable if one of two conditions are not met : that the business of Denselight remains substantially the same and that there is no change of majority shareholders .

     

     

    

68 10. C ONDUCT OF  T AX  C LAIMS (a) Subject to paragraph 9 , if the Buyer becomes aware of a Tax Claim, the Buyer shall give or procure that notice in writing is given to the Seller as soon as reasonably practicable, provided that giving that notice shall not be a condition precedent to the Seller’s liability under this Tax Covenant . (b) If the Seller becomes aware of a Tax Claim, it shall notify the Buyer in writing as soon as reasonably practicable, and, on receipt of the notice, the Buyer shall be deemed to have given the Seller notice of the Tax Claim in accordance with the provisions of paragraph 10 (a) . (c) The Buyer will take into account any reasonable representations in relation to the Tax Claim that are made in writing by the Seller within ten Business Days of notice having been given (or deemed to have been given) under paragraph 10 (a) or 10 (b) but shall otherwise be free to pay or settle the Tax Claim on such terms as the Buyer, in its absolute discretion, considers fit . 11. G ROSSING  UP (a) All amounts due under this Tax Covenant from the Seller to the Buyer shall be paid in full without any set - off, counterclaim, deduction or withholding (other than any deduction or withholding of tax required by law) . If any deductions or withholdings are required by law to be made from any of the sums payable under this Tax Covenant, the Seller shall pay to the Buyer any sum as will, after the deduction or withholding is made, leave the Buyer with the same amount as it would have been entitled to receive without that deduction or withholding . (b) If the Buyer incurs, or would have incurred, but for the use of a Relief, a Tax liability which results from, or is calculated by reference to, any sum paid under this Tax Covenant, the amount payable will be increased by any amount that will ensure that, after payment of the Tax liability, the Buyer is left with a net sum equal to the sum it would have received had no such Tax liability arisen . 12. G ENERAL All payments made by the Seller to the Buyer or by the Buyer to the Seller in accordance with this Tax Covenant will be treated, to the extent possible, as an adjustment to the Consideration for the Sale Shares .

     

     

    

69 Schedule  8  – Capital Equipment, Installations and Improvements

     

     

    

70 Schedule 9  – Payment Details REDACTED  - CONFIDENTIAL INFORMATION

     

     

    

DENSELIGHT SEMICONDUCTORS  PTE  LTD  SHARE  SALE  AGREEMENT |  SIGNATURE PAGE N am e : SIGNATURE PAGE OF SHARE SALE AGREEMENT IN WITNESS WHEREOF,  the  Parties  have duly executed  this  Agreement  as of  the  date  first   written above. BUYER: DenseLight Semiconductor Technology (Shanghai) Co. Ltd. /s/ By: Li Jianxiong Title: Legal Representative

     

     

    

DENSELIGHT SEMICONDUCTORS  PTE  LTD  SHARE  SALE  AGREEMENT |  SIGNATURE PAGE N am e :   Title: SIGNATURE PAGE OF SHARE SALE AGREEMENT IN WITNESS WHEREOF,  the  Parties  have duly executed  this  Agreement  as of  the  date  first   written above. SELLER: POET Technologies, Inc. /s/ By: Suresh Venkatesan   CEOExhibit 4.17

 

POET  TECHNOLOGIES INC. and TSX TRUST COMPANY CONVERTIBLE DEBENTURE INDENTURE Providing for the  Issue of   Convertible Debentures April  3, 2019 WSLEGAL \ 076624 \ 00009 \ 21944090v9

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 TABLE OF CONTENTS ARTICLE  1 INTERPRETATION............................................................................................. 1 1.1 Definitions.............................................................................................................. 1 1.2 Meaning  of  "Outstanding"  ..................................................................................... 8 1.3 Interpretation.......................................................................................................... 9 1.4 Headings,  etc........................................................................................................ 10 1.5 Time of Essence ................................................................................................... 10 1.6 Monetary  References  ........................................................................................... 10 1.7 Invalidity, etc.  ...................................................................................................... 10 1.8 Language.............................................................................................................. 10 1.9 Successors and  Assigns........................................................................................ 10 1.10 Severability  .......................................................................................................... 10 1.11 Entire Agreement ................................................................................................. 10 1.12 Benefits  of  Indenture............................................................................................  11 1.13 Applicable  Law  and  Attornment.......................................................................... 11 1.14 Currency of  Payment  ........................................................................................... 11 1.15 Non - Business Days .............................................................................................. 11 1.16 Accounting  Terms................................................................................................ 11 1.17 Calculations.......................................................................................................... 11 1.18 Schedules  ............................................................................................................. 12 ARTICLE  2 THE DEBENTURES........................................................................................... 12 2.1 Form and  Terms of  Debentures  ........................................................................... 12 2.2 Non - Certificated Deposit  ..................................................................................... 18 2.3 Execution  of Debentures...................................................................................... 19 2.4 Authentication...................................................................................................... 20 2.5 Interim Debenture  Certificates............................................................................. 20 2.6 Mutilation,  Loss,  Theft or  Destruction  ................................................................ 21 2.7 Concerning Interest .............................................................................................. 21 2.8 Debentures  to  Rank  Pari  Passu  ............................................................................ 22 2.9 Payments  of  Amounts  Due on Maturity .............................................................. 22 2.10 Payment  of  Interest  .............................................................................................. 22 2.11 Canadian Legend  ................................................................................................. 23 2.12 U.S. Legend  ......................................................................................................... 24 ARTICLE  3  REGISTRATION, TRANSFER, EXCHANGE  AND  OWNERSHIP............ 26 3.1 Fully  Registered  Debentures................................................................................ 26 3.2 Transfer and Exchange  of  Restricted  Debentures................................................ 26  3.3 Transferee  Entitled to  Registration  ...................................................................... 27 3.4 No Notice  of Trusts.............................................................................................. 27 3.5 Registers  Open for Inspection.............................................................................. 27 3.6 Exchanges  of Debentures..................................................................................... 27 3.7 Closing of Registers ............................................................................................. 28 3.8 Charges  for  Registration, Transfer and Exchange  ............................................... 28  3.9 Ownership  of Debentures .................................................................................... 29 - i -

     

     

    

- i i - WSLEGAL \ 076624 \ 00009 \ 21944090v9 TABLE OF CONTENTS (continued) P age ARTICLE  4  PURCHASE  OF DEBENTURES....................................................................... 30 4.1 Put Right  upon Closing of  DenseLight Transaction  ............................................ 30 4.2 Purchase  of  Debentures  by  the Company ............................................................ 32 ARTICLE 5 SUBORDINATION OF DEBENTURES .......................................................... 32 5 . 1 Applicability of Article ........................................................................................ 32 5 . 2 Order of Payment ................................................................................................. 33 5 . 3 Subrogation to Rights of Holders of Senior Indebtedness ................................... 34 5 . 4 Obligation to Pay Not Impaired ........................................................................... 34 5 . 5 Payment on Debentures Permitted ....................................................................... 35 5 . 6 Knowledge of Trustee .......................................................................................... 35 5 . 7 Trustee May Hold Senior Indebtedness ............................................................... 35 5 . 8 Rights of Holders of Senior Indebtedness Not Impaired ..................................... 35 5 . 9 Altering the Senior Indebtedness ......................................................................... 35 5 . 10 Additional Indebtedness ....................................................................................... 36 5 . 11 Right of Debentureholder to Convert Not Impaired ............................................ 36 5 . 12 Invalidated Payments ........................................................................................... 36 5 . 13 Contesting Security .............................................................................................. 36 ARTICLE 6 CONVERSION OF DEBENTURES .................................................................. 36 6.1 Applicability of Article ........................................................................................ 36 6.2 Notice of Expiry of Conversion  Privilege  ........................................................... 37 6.3 Revival  of  Right  to  Convert ................................................................................. 37 6.4 Manner  of Exercise of  Right  to Convert.............................................................. 37 6.5 Adjustment of Conversion Price .......................................................................... 39 6.6 Rules  Regarding  Calculation of Adjustment ....................................................... 44  6.7 Notice of Adjustment ........................................................................................... 47 6.8 No Action after  Notice......................................................................................... 48 6.9 Protection  of Trustee............................................................................................ 48 ARTICLE  7  COVENANTS  OF THE  COMPANY  ................................................................ 48 7.1 To Pay Principal and Interest ............................................................................... 48 7.2 To Pay  Trustee's Remuneration  ........................................................................... 48 7.3 To  Give Notice  of Default ................................................................................... 49 7.4 Preservation of Existence, etc. ............................................................................. 49 7.5 Keeping  of  Books  ................................................................................................ 49 7.6 Annual Certificate  of  Compliance  ....................................................................... 49 7.7 Performance  of Covenants................................................................................... 49 7.8 Maintain  Listing................................................................................................... 50 7.9 Insurance .............................................................................................................. 50 7.10 No Dividends  or  Distributions  ............................................................................. 50 7.11 Withholding Matters ............................................................................................ 50 7.12 SEC Reporting Status  .......................................................................................... 51

     

     

    

 - 3 - WSLEGAL \ 076624 \ 00009 \ 21944090v9 TABLE OF CONTENTS (continued) P age ARTICLE  8  DEFAULT  ............................................................................................................ 51 8.1 Events  of  Default  ................................................................................................. 51 8.2 Notice of  Events  of Default ................................................................................. 53 8.3 Waiver of  Default  ................................................................................................ 53 8.4 Enforcement by the Trustee ................................................................................. 54 8.5 No Suits  by  Debentureholders  ............................................................................. 55 8.6 Application  of  Monies  by Trustee ....................................................................... 56 8.7 Notice of  Payment  by  Trustee.............................................................................. 57 8.8 Trustee  May Demand Production of Debentures................................................. 57  8.9 Remedies Cumulative  .......................................................................................... 57 8.10 Judgment Against  the Company .......................................................................... 57 ARTICLE  9  SATISFACTION AND DISCHARGE  .............................................................. 58 9.1 Cancellation and  Destruction............................................................................... 58 9.2 Non - Presentation  of  Debentures  .......................................................................... 58 9.3 Repayment  of Unclaimed  Monies  ....................................................................... 58 9.4 Discharge  ............................................................................................................. 59 9.5 Satisfaction........................................................................................................... 59 9.6 Continuance  of  Rights,  Duties  and  Obligations................................................... 61 ARTICLE  10  MEETINGS  OF DEBENTUREHOLDERS.................................................... 62 10.1 Right to Convene Meeting ................................................................................... 62 10.2 Notice of Meetings............................................................................................... 62 10.3 Chairman.............................................................................................................. 63 10.4 Quorum  ................................................................................................................ 63 10.5 Power to Adjourn ................................................................................................. 64 10.6 Show of Hands ..................................................................................................... 64 10.7 Poll ....................................................................................................................... 64 10.8 Voting .................................................................................................................. 64 10.9 Proxies..................................................................................................................  64 10.10     Persons  Entitled to Attend  Meetings.................................................................... 65 10.11    Powers Exercisable  by  Extraordinary Resolution................................................ 65 10.12    Meaning  of  "Extraordinary  Resolution" .............................................................. 67 10.13   Powers  Cumulative .............................................................................................. 68 10.14   Minutes ............................................................................................................. ... 68 10.15   Instruments  in Writing ......................................................................................... 68 10.16    Binding Effect  of Resolutions.............................................................................. 69 10.17    Evidence  of  Rights Of Debentureholders  ............................................................ 69 ARTICLE  11  NOTICES  ........................................................................................................... 69 11.1 Notice to Company .............................................................................................. 69 11.2 Notice to  Debentureholders  ................................................................................. 69 11.3 Notice to Trustee.................................................................................................. 70

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 TABLE OF CONTENTS (continued) - i v - P age 11.4 Mail Service Interruption ..................................................................................... 70 ARTICLE  12  CONCERNING  THE TRUSTEE .................................................................... 70 12.1 No  Conflict of  Interest  ......................................................................................... 70 12.2 Replacement  of Trustee ....................................................................................... 71 12.3 Duties  of Trustee.................................................................................................. 72 12.4 Reliance  Upon Declarations, Opinions,  etc. ........................................................ 72 12.5 Evidence and  Authority  to  Trustee,  Opinions,  etc. .............................................. 72  12.6 Officer's Certificates Evidence  ............................................................................ 73 12.7 Experts,  Advisers and  Agent................................................................................ 74 The  Trustee may:  ............................................................................................................. 74  12.8 Trustee  May  Deal  in  Debentures  ......................................................................... 74 12.9 Trustee Not  Ordinarily Bound ............................................................................. 74 12.10    Trustee Not Required  to Give Security................................................................ 75 12 . 11 Conditions Precedent to Trustee's Obligations to Act Hereunder ....................... 75 12 . 12 Authority to Carry on Business ............................................................................ 75 12 . 13 Compensation and Indemnity .............................................................................. 75 12 . 14 Acceptance of Trust ............................................................................................. 76 12 . 15 Third Party Interests ............................................................................................. 76 12 . 16 Anti - Money Laundering ...................................................................................... 76 12 . 17 Privacy Laws ........................................................................................................ 77 12 . 18 Force Majeure ...................................................................................................... 77 ARTICLE  13  SUPPLEMENTAL INDENTURES  ................................................................. 78 13.1 Supplemental  Indentures...................................................................................... 78 ARTICLE  14  EXECUTION AND FORMAL  DATE............................................................. 79 14.1 Execution  ............................................................................................................. 79 14.2 Formal  Date ......................................................................................................... 79 SCHEDULE  "A"  FORM  OF  DEBENTURE  ........................................................................... 1 SCHEDULE "B" FORM  OF  TRANSFER  ............................................................................... 1 SCHEDULE  "C"  CONVERSION FORM................................................................................ 1  SCHEDULE  "D"  FORM  OF DECLARATION  FOR  REMOVAL  OF LEGEND............... 1 SCHEDULE "E" FORM  OF  PUT EXERCISE NOTICE  ...................................................... 1

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 CONVERTIBLE DEBENTURE INDENTURE This Indenture is made  as of  April  3, 2019, between: BETWEEN: POET TECHNOLOGIES INC. a  corporation  existing  under  the  laws  of the  Province  of  Ontario  (the " Company ") AND TSX TRUST COMPANY a trust company existing  under  the  laws  of  Canada  (the " Trustee ") RECITALS The Company  wishes  to  create and issue  the  Debentures (as herein defined)  in the  manner   and subject  to the  terms  and  conditions  of this Indenture; FOR  VALUE  RECEIVED ,  the  parties agree as follows: ARTICLE  1   INTER P RETATION 1. Definitions In  this Indenture and  in the  Debentures, unless there is  something in the subject matter or context   inconsistent therewith,  the expressions following shall  have  the following  meanings, namely: (a) " 90% Redemption  Right " has the meaning ascribed  thereto  in  Section 2.1(h)(ii) ; (b) " this Indenture ", " hereto ", " herein ", " hereby ", " hereunder ", " hereof " and similar expressions refer to this Indenture and not to any particular Article, Section, subsection, clause, subdivision or other portion hereof and include any and every instrument supplemental or ancillary hereto ; (c) " Adjustment Period " means the period commencing on the date of issue of the Debentures and ending at the Time of Expiry ; (d) " Applicable Securities Legislation " means applicable securities laws (including rules, regulations, policies and instruments) in each of the provinces and territories of Canada ; (e) " Auditors of the Company " means an independent firm of chartered accountants duly appointed as auditors of the Company ; (f) " Authenticated " means: (i) with respect to the issuance of a Debenture Certificate,   one  which has been  duly  signed  by  the Company  and certified  by  the signature of

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 2 - an authorized signatory of the Trustee ; (ii) with respect to the issuance of an Uncertificated Debenture, one in respect of which the Trustee has completed all Internal Procedures such that the particulars of such Uncertificated Debenture as required by Section 2 . 4 are entered in the register of holders of Debentures, "Authenticate" and "Authentication" have the appropriate correlative meanings ; (g) " Beneficial Holder " means any person who holds a beneficial interest in a Debenture that is represented by a Debenture Certificate or an Uncertificated Debenture registered in the name of CDS or its nominee, for the purposes of being held by or on behalf of CDS as custodian for Participants ; (h) " Board of Directors " means the board of directors of the Company or any committee thereof ; (i) " Business Day " means any day other than a Saturday, Sunday or any other day that   the  Trustee  in Toronto,  Ontario is  not generally open for business; (j) " Change of Control " means : (i) any event as a result of or following which a Person or group of Persons acting jointly or in concert within the meaning of Applicable Securities Legislation, beneficially owns or exercises control or direction over an aggregate of more than 50 % of the then outstanding Common Shares ; or (ii) the sale or other transfer of all or substantially all of the consolidated assets of the Company, unless in any case the holders of voting securities of the Company immediately prior to such sale, merger, reorganization or other similar transaction hold securities representing 50 % or more of the voting control or direction in the Company or the successor entity upon completion of such sale, merger, reorganization or other similar transaction ; (k) " Change  of  Control  Notice "  has  the meaning  ascribed thereto  in subsection   2.1(h)(i) ; (l) " Change  of  Control  Offer "  has  the meaning  ascribed thereto  in subsection   2.1(h)(i) ; (m) " Change of Control Purchase Date " has the meaning ascribed thereto in subsec tion 2 . 1 (h)(i) ; (n) " Common Shares " means the common shares in the capital of the Company, as such common shares are constituted on the date of execution and delivery of this Indenture ; provided that in the event of a change or a subdivision, redivision, reduction, combination or consolidation thereof, any reclassification, capital reorganization, amalgamation, arrangement, merger, sale or conveyance or liquidation, dissolution or winding - up, or such successive changes, subdivisions, redivisions, reductions, combinations or consolidations, reclassifications, capital reorganizations, amalgamations, arrangements, mergers, sales or conveyances or liquidations, dissolutions or windings - up, then, subject to adjustments, if any, having been made in accordance with the provisions of Section 6 . 5 , "Common Shares" shall mean the shares or other securities or property resulting from such

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 3 - change, subdivision, redivision, reduction, combination or consolidation, reclassification, capital reorganization, amalgamation, arrangement, merger, sale or conveyance or liquidation, dissolution or winding - up ; (o) " Conversion Price " means the Original Conversion Price, as may be adjusted in accordance with the terms and conditions of this Indenture ; (p) " Company "  means POET  Technologies Inc.; (q) " Counsel " means a barrister or solicitor or firm of barristers or solicitors retained or employed by the Trustee or retained or employed by the Company and reasonably acceptable to the Trustee ; (r) " Current Market Price " of the Common Shares at any date means the 20 day VWAP ending on the seventh trading day before such date ; provided further that if the Common Shares are not then listed or traded on any Stock Exchange, then the Current Market Price shall be determined by a firm of independent chartered accountants selected by the directors of the Company ; (s) " Date  of  Conversion "  has the  meaning ascribed thereto  in  subsection 6.4(g) ; (t) " Debenture Certificate " means  a  certificate  evidencing  Debentures  substantially   in the  form attached as  Schedule "A" hereto; (u) " Debentureholders " or " holders " means the Persons for the time being entered in the register for Debentures as registered holders of Debentures ; (v) " Debentures " means the unsecured convertible debentures issued and Authenticated hereunder, or deemed to be issued and Authenticated hereunder, and described in Section 2 . 1 and for the time being outstanding, whether in definitive, uncertificated or interim form ; (w) " Defeased  Debentures "  has  the meaning  ascribed thereto  in  subsection 9.6(b) ; (x) " DenseLight Transaction " means the sale transaction, announced by the Company February 4 , 2019 , of all of the issued and outstanding shares of DenseLight Semiconductor Pte . Ltd . , a wholly - owned Subsidiary of the Company ; (y) " Depository " or " CDS " means CDS Clearing and Depository Services Inc . and its successors in interest ; (z) " Event  of  Default " has  the meaning  ascribed thereto  in  Section 8.1 ; ( a a ) " Extraordinary  Resolution "  has  the meaning ascribed  thereto  in  Section 10.12 ; (bb) " Fully Registered Debentures "  means  Debentures registered as  to both principal   and interest;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 4 - ( c c ) " Global Debenture " means a Debenture that is issued to and registered in the name of the Depository, or its nominee, for purposes of being held by or on behalf of the Depository as custodian for participants in the Depository’s book - entry only registration system ; (dd) " Guarantees " means any guarantee, undertaking to assume, endorse, contingently agree to purchase, or to provide funds for the payment of, or otherwise become liable in respect of, any indebtedness, liability or obligation of any Person ; ( e e ) " IFRS " means International Financial Reporting  Standards  issued  by   the   International  Accounting  Standards Board; (ff) " Interest  Obligation " means the  obligation  of the Company to  pay  interest on the   Debentures, as and when  the  same becomes due; (gg) " Interest Payment  Date " means a date specified in a  Debenture as  the  date  on   which interest  on  such Debenture  shall  become  due  and payable; (hh) " Interest Record  Date "  has  the meaning  ascribed thereto  in  Section 2.1(d) ; (ii) " Internal Procedures " means in respect of the making of any one or more entries to, changes in or deletions of any one or more entries in the register of Debentureholders at any time (including without limitation original issuance or registration of transfer of ownership) the minimum number of the Trustee's internal procedures customary at such time for the entry, change or deletion made to be complete under the operating procedures followed at the time by the Trustee, it being understood that neither preparation and issuance shall constitute part of such procedures for any purpose of this definition ; (jj) " Issue Date "  means April 3, 2019; (kk) " Legended Securities "  has the meaning  ascribed thereto  in  Section 2.12(a) ; (ll) " Lien " means with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other security party to or of such Person under any conditional sale or other title retention agreement, upon or with respect to any property of such Person ; (mm) " Maturity Account " means an account or accounts required to be established by the Company (and which shall be maintained by and subject to the control of the Trustee) for the Debentures issued pursuant to and in accordance with this Indenture ; (nn) " Maturity Date "  means  April  3, 2021; (oo) " Maturity Date Payment " has  the meaning  ascribed thereto  in  Section 2.1(c) ;

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 5 - (pp) " Maximum Monthly Put Right  Amount "  has  the meaning  ascribed thereto  in   Sec tion 4.1(e) ; (qq) " Monthly Put Right Deadline " has the meaning ascribed thereto in Section 4.1(c). (rr) " NI  62 - 104 " means National  Instrument  62 - 104  Take - Over  Bids and  Issuer Bids ; (ss) " Offer Price " has  the meaning  ascribed thereto  in  subsection 2.1(h)(i) ; (tt) " Offering " means the private placement offering by the Company of up to $14,000,000  aggregate  principal amount of  Debentures; (uu) " Officer's Certificate " means a certificate of the Company signed by any authorized officer or director of the Company, in their capacity as an officer or director of the Company, and not in their personal capacity ; (vv) " Original Conversion  Price "  means  a conversion  price  of  $0.40  per Unit; ( w w) " Participant " means  a  Person recognized  by  CDS as  a  participant  in the  non - certificated  inventory system  administered  by CDS; (x x ) " Payment Date "  has the  meaning ascribed thereto  in  Section 4.1(d) . ( yy ) " Person " includes an individual, company, partnership, joint venture, association, trust, trustee, unincorporated organization or government or any agency or political subdivision thereof or other entity (and for the purposes of the definition of " Change of Control ", in addition to the foregoing, " Person " shall include any syndicate or group that would be deemed to be a " Person " under NI 62 - 104 ) ; (z z ) " Put Date " has  the meaning  ascribed thereto  in  Section 4.1(a). ( a a a ) " Put Price " has  the meaning  ascribed thereto  in  Section 4.1(a). (bbb) " Put  Right "  has  the meaning  ascribed thereto  in  Section 4.1(a). ( c c c ) " Put Right Notice " has  the meaning  ascribed thereto  in  Section 4.1(b) . (ddd) " Regulation  S " means Regulation  S adopted  by  the  SEC  under the  U.S. Securities   Act; ( e e e ) " Restricted Debenture " means a definitive Debenture Certificate that bears the U.S. Legend; ( f ff) " SEC "  has the meaning  ascribed thereto  in  Section 7.12 ; (ggg) " Senior Creditor " means a holder or holders of Senior Indebtedness and includes any representative or representatives, agent or agents or trustee or trustees of any such holder or holders ;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 6 - (hhh) " Senior Indebtedness " means all obligations, liabilities and indebtedness of the Company and its Subsidiaries (other than trade payables), whether outstanding on the date of this Indenture or thereafter created, incurred, assumed or guaranteed which would, in accordance with IFRS, be classified upon a consolidated statement of financial position of the Company as liabilities of the Company and its Subsidiaries and, whether or not so classified, includes (without duplication) : (a) indebtedness of the Company or its Subsidiaries for borrowed money ; (b) obligations of the Company or its Subsidiaries evidenced by bonds, debentures, commercial paper, notes or other similar instruments ; (c) obligations of the Company or its Subsidiaries arising pursuant or in relation to bankers' acceptances, letters of credit and letters of guarantee, financial leases, performance bonds and surety bonds (including payment and reimbursement obligations in respect thereof) or indemnities issued in connection therewith ; (d) obligations of the Company or its Subsidiaries under any swap, hedging or other similar contracts or arrangements ; (e) obligations of the Company or its Subsidiaries under guarantees relating to the Senior Indebtedness ; (f) all indebtedness of the Company or its Subsidiaries representing the deferred purchase price of any property or assets including, without limitation, purchase money mortgages ; (g) all renewals, extensions, restructurings, refundings and refinancings of any of the foregoing ; (h) all accrued and unpaid interest, fees and other amounts in respect of any of the foregoing ; and (i) all costs and expenses incurred by or on behalf of any Senior Creditor in enforcing payment or collection of any such Senior Indebtedness, including enforcing any security interest securing the same, provided that " Senior Indebtedness " shall not include any indebtedness that would otherwise be Senior Indebtedness if it is expressly stated to be subordinate to or rank pari passu with the Debentures ; (iii) " Senior Security " means all mortgages, liens, pledges, charges (whether fixed or floating), security interests, hypothecs or other encumbrances of any kind, contingent or absolute, held by or on behalf of any Senior Creditor and in any manner securing any Senior Indebtedness . Solely for the purposes of determining whether a Senior Security exists for the purposes of this Indenture, a Person shall be deemed to be the owner of any property which it has acquired or holds subject to a conditional sale or capital lease or other title retention agreement and any lease in the nature thereof (excluding, for the avoidance of doubt, operating leases) and such retention of title by another Person shall constitute a Senior Security ; (jjj) " Stock Exchange " means : (i) the TSX - V ; (ii) if the Common Shares are not then listed on the TSX - V, such other Canadian stock exchange as may be selected by the directors of the Company for such purpose ; or (iii) if the Common Shares are not then listed on any Canadian stock exchange, the over - the - counter market ; (kkk) " Subsidiary " has  the meaning  ascribed thereto  in the  Securities Act (Ontario); (lll) " Tax Act "  means the  Income  Tax Act  (Canada),  as amended; (mmm)" Time  of Expiry "  has  the meaning  ascribed  thereto in  subsection 2.1(f) ;

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 7 - (nnn) " Total  Offer Price "  has  the meaning  ascribed thereto  in  subsection 2.1(h)(i) ; (ooo) " Total  Put  Price "  has  the meaning  ascribed  thereto in  Section 4.1(a) . (ppp) " trading  day "  means,  with  respect  to the Stock  Exchange,  any day  on which  such   exchange  or  market is open  for trading  or quotation; (qqq) " Transaction Instruction " means a written or electronic order signed or deemed to be signed by the holder or the Depository entitled to request that one or more actions be taken, or such other form as may be reasonably acceptable to the Trustee, requesting one or more such actions to be taken in respect of an Uncertificated Debenture ; ( r rr) " Trustee " means TSX  Trust  Company,  or  its successor  or successors for the time   being as trustee hereunder; (sss) " TSX - V " means  the  TSX Venture Exchange; (ttt) " Uncertificated  Debenture " means  any  Debenture  which is  not evidenced  by  a   Debenture Certificate; (uuu) " Unclaimed Funds Return Date " has  the meaning  ascribed thereto  in clause   2.1(h)(vii) ; (vvv) " United  States " or  " U.S. "  means the United States of  America, its territories and   possessions,  any state  of  the  United States and  the  District  of Columbia; (www) " Units " means the units issuable upon conversion of the Debentures at the Conversion Price in accordance with Article 6 , with each such Unit being comprised of one ( 1 ) Unit Share and one ( 1 ) Warrant ; (xxx)  " Unit  Shares "  means  the Common  Shares comprising part  of a Unit; ( y y y ) " Unrestricted Debentures "  means collectively  Unrestricted Physical Debentures   and Unrestricted Uncertificated Debentures; (z z z ) " Unrestricted Physical Debenture "  means a definitive  Debenture Certificate that   does  not  bear  the  U.S. Legend; (aaaa) " Unrestricted Uncertificated  Debenture " means  an Uncertificated Debenture   that  is  not  marked  to  bear  the  U.S. Legend; (bbbb) " U.S. Accredited  Investor "  means an "accredited  investor"  as such term is defined   in Rule  501(a)  of Regulation  D promulgated  under the  U.S. Securities Act; (cccc) " U.S. Legend "  has the meaning  ascribed thereto  in  Section 2.12 ; (dddd) " U.S. Person " has  the meaning  set forth  in Rule 902(k) of  Regulation S;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 8 - (eeee) " U . S . Purchaser " means an original purchaser of Debentures who was, at the time of purchase : (i) a person purchasing the Debentures in the United States or a U . S . Person ; (ii) a person purchasing Debentures on behalf of, or for the account or benefit of, any person in the United States or a U . S . Person ; (iii) a person that received an offer to purchase the Debentures while in the United States ; or (iv) a person that was in the United States at the time such person's buy order was made or the subscription for the Debentures was executed or delivered ; ( f fff) " U.S. Securities Act " means the United States Securities Act of 1933, as amended,   and  the  rules and regulations promulgated thereunder; (gggg) " U . S . Exchange Act " means the United States Securities Exchange Act of 1934 , as amended, and the rules and regulations promulgated thereunder ; (hhhh) " VWAP " means the per share volume weighted average trading price of the Common Shares for the applicable consecutive day period (which must be calculated utilizing days in which the Common Shares actually trade) on the Stock Exchange as reported by Bloomberg L . P .; (iiii) " Warrant Indenture " means the indenture dated the date hereof, between the Company and TSX Trust Company governing the terms and conditions of the Warrants comprising the Units issuable upon conversion of the Debentures in accordance with Sec tion 2 . 1 (f) and Article 6 hereof ; (jjjj) " Warrant Shares "  means the  Common Shares issuable  upon the  exercise  of the   Warrants; (kkkk) " Warrants " means the Common Share purchase warrants which comprise part of the Units issuable upon conversion of the Debentures in accordance with Article 6 hereof, each such Warrant being exercisable into one Common Share at an exercise price per Common Share equal to $ 0 . 50 , for a period of four ( 4 ) years from the Issue Date ; (llll) " Withholding Taxes " has the meaning ascribed to it in Section 7 . 11 ; and (mmmm) " Written Direction of the Company " means an instrument in writing signed  by  any  one  officer  or  director  of the Company. 2. Meaning  of "Outstanding" Every Debenture Authenticated and delivered or electronically deposited by the Trustee shall be deemed to be outstanding until it is cancelled, converted or redeemed or delivered to the Trustee for cancellation, conversion or redemption for monies and/or Units, as the case may be, or the payment thereof shall have been set aside under Section 9 . 2 , provided that : (a) Debentures which have been partially redeemed, purchased or converted shall be deemed to be outstanding only to the extent of the unredeemed, unpurchased or unconverted part of the principal amount thereof ;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 9 - (b) when a new Debenture has been issued in substitution for a Debenture which has been lost, stolen or destroyed, only one of such Debentures shall be counted for the purpose of determining the aggregate principal amount of Debentures outstanding ; and (c) for the purposes of any provision of this Indenture entitling holders of outstanding Debentures to vote, sign consents, requisitions or other instruments or take any other action under this Indenture, or to constitute a quorum of any meeting of Debentureholders, Debentures owned directly or indirectly, legally or equitably, by the Company or any of its Subsidiaries shall be disregarded except that : (i) for the purpose of determining whether the Trustee shall be protected in relying on any such vote, consent, requisition or other instrument or action, or on the holders of Debentures present or represented at any meeting of Debentureholders, only the Debentures which the Trustee knows are so owned shall be so disregarded ; and (ii) Debentures so owned which have been pledged in good faith other than to the Company shall not be so disregarded if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right to vote such Debentures, sign consents, requisitions or other instruments or take such other actions in his discretion free from the control of the Company or a Subsidiary of the Company . 3. Interpretation In  this Indenture: (a) words importing the singular number or masculine gender shall include the plural number or the feminine or neuter genders, and vice versa ; (b) all references to Articles and Schedules refer, unless otherwise specified, to articles of and schedules to this Indenture ; (c) all references to Sections refer, unless otherwise specified, to Sections, subsections or clauses of this Indenture ; (d) words and terms denoting inclusiveness (such as "include" or "includes" or "including"), whether or not so stated, are not limited by and do not imply limitation of their context or the words or phrases which precede or succeed them ; (e) reference to any agreement or other instrument in writing means such agreement or other instrument in writing as amended, modified, replaced or supplemented from time to time ; (f) unless otherwise indicated, reference  to a statute  shall  be  deemed  to be a  reference   to such statute  as  amended, re - enacted  or  replaced from  time to  time; and

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 10 - (g) unless otherwise indicated, time periods within which a payment is to be made or any other action is to be taken hereunder shall be calculated by including the day on which the period commences and excluding the day on which the period ends . 4. Headings, etc. The division of this Indenture into Articles and Sections, the provision of a Table of Contents and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Indenture or of the Debentures . 5. Time  of  Essence Time shall be of the essence of this Indenture . 6. Monetary References Whenever any amounts of money are referred to herein, such amounts shall be deemed to be in lawful money of Canada unless otherwise expressed . 7. Invalidity, etc. Any provision hereof which is prohibited or unenforceable shall be ineffective only to the extent of such prohibition or unenforceability, without invalidating the remaining provisions hereof . 8. Language Each of the parties hereto hereby acknowledges that it has consented to and requested that this Indenture and all documents relating thereto, including, without limiting the generality of the foregoing, the form of Debenture attached hereto as Schedule "A", be drawn up in the English language only . 9. Successors and Assigns All covenants and agreements of the Company in this Indenture and the Debentures shall bind its successors and assigns, whether so expressed or not . All covenants and agreements of the Trustee in this Indenture shall bind its successors . 10. Severability In case any provision in this Indenture or in the Debentures shall be invalid, illegal or unenforceable, such provision shall be deemed to be severed herefrom or therefrom and the validity, legality and enforceability of the remaining provisions shall not in any way be affected, prejudiced or impaired thereby . 11. Entire Agreement This Indenture and all supplemental indentures and Schedules hereto and thereto, and the Debentures issued hereunder and thereunder, together constitute the entire agreement between the parties hereto with respect to the indebtedness created hereunder and thereunder and under the

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 11 - Debentures and supersedes as of the date hereof all prior memoranda, agreements, negotiations, discussions and term sheets, whether oral or written, with respect to the indebtedness created hereunder or thereunder and under the Debentures . 12. Benefits  of Indenture Nothing in this Indenture or in the Debentures, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any paying agent, the holders of Debentures, and the holders of Common Shares, any benefit or any legal or equitable right, remedy or claim under this Indenture . 13. Applicable  Law  and Attornment This Indenture, any supplemental indenture and the Debentures shall be governed by and interpreted in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein and shall be treated in all respects as Ontario contracts and with respect to any suit, action or proceedings relating to this Indenture, any supplemental indenture or any Debenture, the Company, the Trustee and each holder irrevocably submit and attorn to the non - exclusive jurisdiction of the courts of the Province of Ontario . 14. Currency  of Payment Unless otherwise indicated in a supplemental indenture with respect to any particular series of Debentures, all payments to be made under this Indenture or a supplemental indenture shall be made in Canadian dollars . 15. Non - Business Days Whenever any payment to be made hereunder shall be due, any period of time would begin or end, any calculation is to be made or any other action is to be taken on, or as of, or from a period ending on, a day other than a Business Day, such payment shall be made, such period of time shall begin or end, such calculation shall be made and such other action shall be taken, as the case may be, unless otherwise specifically provided herein, on or as of the next succeeding Business Day without any additional interest, cost or charge to the Company . 16. Accounting Terms Except as hereinafter provided or as otherwise indicated in this Indenture, all calculations required or permitted to be made hereunder pursuant to the terms of this Indenture shall be made in accordance with IFRS . For greater certainty, IFRS shall include any accounting standards that may from time to time be approved for general application by the Canadian Institute of Chartered Accountants . 17. Calculations The Company shall be responsible for making all calculations called for hereunder including, without limitation, calculations of the Conversion Price, the Current Market Price and the Current Market Price for Interest . The Company shall make such calculations in good faith and, absent

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 12 - manifest error, the Company's calculations shall be final and binding on holders and the Trustee . The Company will provide a schedule of its calculations to the Trustee and the Trustee shall be entitled to rely conclusively on the accuracy of such calculations without independent verification . 18. Schedules (a) The following Schedules  are incorporated  into and  form part  of this  Indenture:  Schedule "A" – Form  of Debenture Schedule "B" – Form  of Transfer Schedule "C" – Form of Notice of Conversion Schedule "D" – Form of Declaration for Removal of Legend Schedule "E" – Form of Put Exercise Notice (b) In the event of any inconsistency between the provisions of any Section of this Indenture and the provisions of the Schedules which form a part hereof, the provisions of this Indenture shall prevail to the extent of the inconsistency . ARTICLE  2   THE DEBENTURES 1. Form and Terms  of Debentures (a) The Debentures authorized for issue and which may be Authenticated and delivered under this Indenture are limited to an aggregate principal amount of up to $ 14 , 000 , 000 , may only be issued upon and subject to the conditions and limitations set forth herein and shall be designated as " 12 . 00 % Unsecured Convertible Debentures" . (b) The Debentures shall be issued in denominations of $ 1 , 000 and integral multiples of $ 1 , 000 . Each Debenture and the certificate of the Trustee endorsed thereon shall be issued in substantially the form set out in Schedule "A" , with such insertions, omissions, substitutions or other variations as shall be required or permitted by this Indenture, and may have imprinted or otherwise reproduced thereon such legend or legends or endorsements, not inconsistent with the provisions of this Indenture, as may be required to comply with any law or with any rules or regulations pursuant thereto or with any rules or regulations of any securities exchange or securities regulatory authority or to conform with general usage, all as may be determined by the Board of Directors executing such Debenture in accordance with Section 2 . 3 , as conclusively evidenced by their execution of a Debenture . Each Debenture shall additionally bear such distinguishing letters and numbers as the Trustee shall approve . Notwithstanding the foregoing, a Debenture may be in such other form or forms as may, from time to time, be approved by a resolution of the Board of

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 13 - Directors, including as Uncertificated Debentures in accordance with Section 2 . 2 , or as specified in an Officer's Certificate . The Debentures may be engraved, lithographed, printed, mimeographed or typewritten or partly in one form and partly in another . The Debentures shall be issued in the form of definitive Debenture Certificates or as Uncertificated Debentures (unless a U . S . Legend applies), and shall bear the U . S . Legend, if applicable . (c) The Debentures shall be dated as of the Issue Date and shall mature on the Maturity Date . Subject to the terms and conditions hereof, the outstanding principal amount of the Debentures shall be repaid by the Company to the Debentureholders on the Maturity Date, together with all accrued and unpaid interest on the outstanding principal (the " Maturity Date Payment ") . (d) The Debentures shall bear interest from and including the Issue Date at the rate of 12 . 00 % per annum (based on a year of 365 days), payable in equal monthly payments on the third day of each calendar month (or the first Business Day after such date if not a Business Day) provided that : (i) the first interest payment will be payable on May 3 , 2019 and will be equal to $ 10 . 00 per $ 1 , 000 principal amount of Debentures ; and (ii) the last payment shall fall due on the Maturity Date payable after as well as before maturity and after as well as before default, with interest on amounts in default at the same rate, compounded annually . Any payment required to be made on any day that is not a Business Day will be made on the next succeeding Business Day . The record date for the payment of interest on the Debentures will be the last day of each calendar month (or the first Business Day after such date if not a Business Day) (the " Interest Record Date ") . (e) At any time following the closing of the DenseLight Transaction and prior to the Maturity Date, holders of Debentures shall have a right to require the Company to purchase their Debentures in accordance with the provisions and conditions of Sec tion 4 . 1 . (f) In accordance with and subject to the provisions and conditions of Article 6 and Section 3 . 7 , the holder of each Debenture shall have the right at such holder's option, at any time following November 1 , 2019 and prior to 5 : 00 p . m . (Eastern time) on the earlier of : (i) the Business Day immediately preceding the Maturity Date (the " Time of Expiry ") ; and (ii) if subject to repurchase in accordance with the terms hereof, on the last Business Day immediately preceding the payment date applicable to such repurchase, subject to the satisfaction of certain conditions set forth herein, to convert all or any portion, being at a minimum $ 1 , 000 or an integral multiple thereof, of the principal amount of a Debenture into Units at the Conversion Price in effect on the Date of Conversion . The Conversion  Price  in  effect  on the  date hereof  for  each  Unit to be  issued  upon   the conversion of Debentures  shall  be  equal  to $0.40  such  that 2,500  Units shall be

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 14 - issued for each $ 1 , 000 . 00 principal amount of Debentures so converted . Except as provided in Section 6 . 5 , no adjustment in the number of Units to be issued upon conversion will be made for dividends or distributions on Common Shares issuable upon conversion, the record date for the payment of which precedes the date upon which the holder becomes a holder of Unit Shares in accordance with Article 6 . No fractional Unit Shares or Warrants will be issued and such fractions will be rounded down to the nearest whole Unit Share and Warrant without the payment of any compensation to the holder . The Conversion Price is subject to adjustment pursuant to the provisions of Section 6 . 5 . Debentureholders converting their Debentures will receive, in addition to the applicable number of Units, accrued and unpaid interest (less any taxes required to be deducted from such interest) in respect of the Debentures surrendered for conversion up to but excluding the Date of Conversion from, and including, the most recent Interest Payment Date in accordance with Section 6 . 4 (j) . For clarity, payment of such interest may, at the option of the Company, be paid on the next regularly scheduled Interest Payment Date following the Date of Conversion . Holders of Debentures surrendered for conversion on the opening of business on the Interest Payment Date will receive the monthly interest payable on such Debentures on the corresponding Interest Payment Date notwithstanding the conversion . The Conversion Price will not be adjusted for accrued interest . Notwithstanding any other provisions of this Indenture, if a Debenture is surrendered for conversion on an Interest Payment Date the Person or Persons entitled to receive Units in respect of the Debenture so surrendered for conversion shall not become the holder or holders of record of the Common Shares and Warrants forming part of such Units until the Business Day following such Interest Payment Date and, for clarity, any interest payable on such Debentures will be for the account of the holder of record of such Debentures at the close of business on the relevant Interest Record Date . A Debenture in respect of which a holder has accepted a Change of Control Offer pursuant to the provisions of subsection 2 . 1 (h) may be surrendered for conversion only if such acceptance is withdrawn in accordance with this Indenture . (g) The Company shall on or before 11 : 00 a . m . (Toronto time) on the earlier of A) the Business Day immediately preceding the Interest Payment Date or B) the Business Day immediately preceding the date that cheques are to be mailed in accordance with Section 2 . 10 , satisfy its Interest Obligation on the Debentures on any Interest Payment Date by delivering immediately available funds by wire transfer to the Trustee . (h) In connection with a Change of Control, and subject to the provisions and conditions of this subsection 2 . 1 (h), the Company shall be obligated to offer to

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 15 - purchase, and/or  replace  all  of the  Debentures  then  outstanding.  The terms  and   conditions  of  such obligation are set forth below: (i) Not less than 30 days following the occurrence of a Change of Control, the Company shall deliver to the Trustee, and the Trustee shall promptly deliver to the holders of the Debentures, a notice stating that there has been a Change of Control and specifying the date on which such Change of Control occurred and the circumstances or events giving rise to such Change of Control (a " Change of Control Notice "), together with a cash offer in writing (the " Change of Control Offer ") to purchase on the Change of Control Purchase Date (as defined below), all (or any portion actually tendered to such offer) of the Debentures then outstanding from the holders thereof made in accordance with the requirements of Applicable Securities Legislation at a price equal to 100 % of the principal amount of the Debenture (the " Offer Price ") plus accrued and unpaid interest on such Debentures up to, but excluding, the Change of Control Purchase Date (collectively, the " Total Offer Price ") . If the Change of Control results in a new or continuing reporting issuer, a Debentureholder may elect, in lieu of payment from the Company of the Total Offer Price in respect of the Debentures held by it (or any portion thereof), to convert such Debentures into one or more replacement debentures of the resulting issuer, on substantially the same terms as the Debentures, in the aggregate principal amount of 100 % of the aggregate principal amount of such Debentures plus accrued and unpaid interest on such debentures . Upon receipt of a Change of Control Notice, a Debentureholder may also elect to convert all or any portion of the Debentures held by it into Units at the Conversion Price in accordance with the terms hereof at any time after November 1 , 2019 and on or prior to the last Business Day prior to the Change of Control Purchase Date . The " Change of Control Purchase Date " shall be the date that is 30 Business Days after the date that the Change of Control Notice and Change of Control Offer are delivered to holders of Debentures . Subject to Applicable Securities Legislation and Stock Exchange requirements the Company shall have no obligation to file or prepare any registration statement, prospectus or similar document in order to permit any Debentureholder to exercise such right . (ii) If 90 % or more in aggregate principal amount of Debentures outstanding, calculated on the date the Company provides the Change of Control Notice to holders of the Debentures, have been surrendered for purchase pursuant to the Change of Control Offer on the expiration thereof, the Company has the right upon written notice provided to the Trustee within 10 days following the expiration of the Change of Control Offer, to redeem all the Debentures remaining outstanding on the expiration of the Change of Control Offer at the Total Offer Price as at the Change of Control Purchase Date (the " 90 % Redemption Right ") .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 16 - (iii) Upon receipt of notice that the Company has exercised or is exercising the 90 % Redemption Right and is acquiring the remaining Debentures, the Trustee shall promptly provide written notice, such form of notice to be provided to it by the Company, to each Debentureholder that did not previously accept the Change of Control Offer that : (A) the Company has exercised the 90 % Redemption Right and is purchasing all outstanding Debentures as of the expiry of the Change of Control Offer at the Total Offer Price, and shall include a calculation of the amount payable to such holder as payment of the Total Offer Price as at the Change of Control Purchase Date ; (B) each such holder must surrender their Debentures to the Trustee on the same terms as those holders that accepted the Change of Control Offer and must send their respective Debentures, duly endorsed for transfer, to the Trustee within 10 days after the sending of such notice ; and (C) the rights of such holder under the terms of the Debentures and this Indenture cease to be effective as of the date of expiry of the Change of Control Offer provided the Company has, on or before the time of notifying the Trustee of the exercise of the 90 % Redemption Right, paid the Total Offer Price to, or to the order of, the Trustee and thereafter the Debentures shall not be considered to be outstanding and the holder shall not have any right except to receive such holder's aggregate Total Offer Price upon surrender and delivery of such holder's Debentures in accordance with the Indenture . (iv) The Company shall, on or before 11 : 00 a . m . (Toronto time) on the Business Day immediately prior to the Change of Control Purchase Date, deposit with the Trustee or any paying agent to the order of the Trustee by wire transfer, such sums of money as may be sufficient to pay the aggregate Total Offer Price of the Debentures to be purchased or redeemed by the Company on the Change of Control Purchase Date . The Company shall also deposit with the Trustee a sum of money sufficient to pay any charges or expenses which may be incurred by the Trustee in connection with such purchase . Every such deposit shall be irrevocable . From the sums so deposited, in respect of the aggregate Total Offer Price, the Trustee shall pay or cause to be paid to the holders of such Debentures, the Total Offer Price to which they are entitled (less any tax required by law to be deducted in respect of accrued and unpaid interest) . (v) In  the event that one  or  more  of  such Debentures  being purchased in   accordance  with this subsection  2.1(h)  becomes subject to purchase in part

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 17 - only, upon surrender of such Debentures for payment of the Total Offer Price, the Company shall execute and the Trustee shall Authenticate and deliver without charge to the holder thereof or upon the holder's order, one or more new Debentures for the portion of the principal amount of the Debentures not purchased . (vi) Debentures for which holders have accepted the Change of Control Offer and Debentures which the Company has elected to redeem in accordance with this subsection 2 . 1 (h) shall become due and payable at the Total Offer Price on the Change of Control Purchase Date, in the same manner and with the same effect as if it were the date of maturity specified in such Debentures, anything therein or herein to the contrary notwithstanding, and from and after the Change of Control Purchase Date, if the money necessary to purchase or redeem the Debentures shall have been deposited as provided in this subsection 2 . 1 (h) and affidavits or other proofs satisfactory to the Trustee as to the publication and/or mailing of such notices shall have been lodged with it, interest on the Debentures shall cease . If any question shall arise as to whether any notice has been given as above provided and such deposit made, such question shall be decided by the Trustee whose decision shall be final and binding upon all parties in interest . (vii) In case the holder of any Debenture to be purchased or redeemed in accordance with this subsec tion 2 . 1 (h) shall fail on or before the Change of Control Purchase Date to so surrender such holder's Debenture or shall not within such time accept payment of the monies payable or give such receipt therefor, if any, as the Trustee may require, such monies may be set aside in trust, without interest, either in the deposit department of the Trustee or in a chartered bank, and such setting aside shall for all purposes be deemed a payment to the Debentureholder of the sum so set aside and the Debentureholder shall have no other right except to receive payment of the monies so paid and deposited upon surrender and delivery of such holder's Debenture . In the event that any money required to be deposited hereunder with the Trustee or any depository or paying agent on account of the principal and/or the interest (if any) on Debentures issued hereunder shall remain so deposited for a period of four years from the Change of Control Purchase Date, then, subject to any applicable law regarding unclaimed property, such monies together with any accumulated interest thereon, or any distributions paid thereon, shall at the end of such period be paid over or delivered over by the Trustee or such depository or paying agent to the Company upon the Company's request and the Trustee shall not be responsible to Debentureholders for any amounts owing to them . Notwithstanding the foregoing, the Trustee will pay any remaining funds deposited hereunder on that date which is four years after the Change of Control Purchase Date (the " Unclaimed Funds Return Date ") to the Company upon receipt from the Company of an unconditional letter of credit from a Canadian chartered bank in an amount equal to or in excess of the amount of the remaining funds .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 18 - (viii) Subject to the provisions above related to Debentures purchased in part, all Debentures redeemed and paid under this subsection 2 . 1 (h) shall forthwith be delivered to the Trustee and cancelled and no Debentures shall be issued in substitution therefor . 2. Non - Certificated Deposit (a) Subject  to the  provisions hereof, at  the  Company's  option,  Debentures  may be   issued and registered  in the  name  of  CDS  or  its  nominee and: (i) the  deposit  of  which  may be  confirmed  electronically  by  the Trustee to a   particular Participant through CDS; and (ii) shall  be  identified  by  a specific  CUSIP/ISIN as requested  by  the Company   from CDS  to identify each  specific series  of Debentures. (b) If the Company issues Debentures in a non - certificated format, Beneficial Holders of such Debentures registered and deposited with CDS shall not receive Debenture Certificates in definitive form and shall not be considered owners or holders thereof under this Indenture or any supplemental indenture . Beneficial interests in Debentures registered and deposited with CDS will be represented only through the non - certificated inventory system administered by CDS . Transfers of Debentures registered and deposited with CDS between Participants shall occur in accordance with the rules and procedures of CDS . Neither the Company nor the Trustee shall have any responsibility or liability for any aspects of the records relating to or payments made by CDS or its nominee, on account of the beneficial interests in Debentures registered and deposited with CDS . Nothing herein shall prevent the Beneficial Holders of Debentures registered and deposited with CDS from voting such Debentures using duly executed voting instruction forms . (c) All references herein to actions by, notices given or payments made to Debentureholders shall, where the Debentures are held through CDS, refer to actions taken by, or notices given or payments made to, CDS upon instruction from the Participants in accordance with its rules and procedures . For the purposes of any provision hereof requiring or permitting actions with the consent of or the direction of the Debentureholders evidencing a specified percentage of the aggregate Debentures outstanding, such direction or consent may be given by Beneficial Holders acting through CDS and the Participants owning Debentures evidencing the requisite percentage of the Debentures . The rights of a Beneficial Holder whose Debentures are held in CDS through Participants shall be established by law and agreements between such holders and CDS and the Participants upon instructions from the Participants . Each of the Trustee and the Company may deal with CDS for all purposes (including the making of payments for principal or interest) as the authorized representative of the respective Debentures and such dealing with CDS shall constitute satisfaction or performance, as applicable, of their respective obligations hereunder .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 19 - (d) For so long as the Debentures are held through CDS, if any notice or other communication is required to be given to Debentureholders, the Trustee will give such notices and communications to CDS in accordance with Section 11 . 2 . (e) If CDS resigns or is removed from its responsibility as Depository and the Company is unable or does not wish to locate a qualified successor, CDS shall provide the Trustee with instructions for registration of the Debentures in the names and in the amounts specified by CDS and the Company shall issue and the Trustee shall Authenticate and deliver the aggregate principal amount of Debentures then outstanding in the form of definitive Debentures Certificates representing such Debentures . (f) The rights of Beneficial Holders who hold securities entitlements in respect of the Debentures through non - certificated inventory system administered by CDS shall be limited to those established by applicable law and agreements between the Depository and the Participants and between such Participants and the Beneficial Holders who hold securities entitlements in respect of the Debentures through the non - certificated inventory system administered by CDS, and such rights must be exercised through a Participant in accordance with the rules and procedures of the Depository . (g) Notwithstanding anything  herein  to the  contrary,  none of the Company nor the   Trustee  nor  any  agent thereof shall  have  any  responsibility or liability for: (i) the electronic records maintained by the Depository relating to any ownership interests or other interests in the Debentures or the depository system maintained by the Depository, or payments made on account of any ownership interest or any other interest of any Person in any Debenture represented by an electronic position in the non - certificated inventory system administered by CDS (other than the Depository or its nominee) ; (ii) for  maintaining,  supervising  or  reviewing  any  records  of the Depository or   any Participant  relating  to  any such  interest; or (iii) any advice or representation made or given by the Depository or those contained herein that relate to the rules and regulations of the Depository or any action to be taken by the Depository on its own direction or at the direction of any Participant . 2.3 Execution  of Debentures All Debenture Certificates shall be signed (either manually or by facsimile or other electronic signature) by any one authorized director or officer of the Company holding office at the time of signing . A facsimile or electronic signature upon a Debenture shall for all purposes of this Indenture be deemed to be the signature of the Person whose signature it purports to be . Notwithstanding the foregoing, if any Person whose signature, either manual or in facsimile or electronic form, appears on a Debenture as a director or officer no longer holds such office at the date of the Debenture or at the date of the certification and delivery thereof, such Debenture shall

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 20 - be valid and binding upon and enforceable against the Company and entitled to the benefits of this Indenture . 4. Authentication (a) No Debenture shall be issued or, if issued, shall be obligatory or shall entitle the holder to the benefits of this Indenture, until it has been Authenticated by or on behalf of the Trustee substantially in the form set out in this Indenture, in a relevant supplemental indenture, or in some other form approved by the Trustee . Such Authentication on any Debenture shall be conclusive evidence that such Debenture is duly issued, is a valid and binding obligation of the Company enforceable against the Company and the holder is entitled to the benefits hereof . (b) The Authentication of the Trustee of the Debentures, or interim Debentures hereinafter mentioned, shall not be construed as a representation or warranty by the Trustee as to the validity of this Indenture or of the Debentures or interim Debentures or as to the issuance of the Debentures or interim Debentures and the Trustee shall in no respect be liable or answerable for the use made of the Debentures or interim Debentures or any of them or the proceeds thereof . The Authentication of the Trustee on the Debentures or interim Debentures shall, however, be a representation and warranty by the Trustee that the Debentures or interim Debentures have been duly Authenticated by or on behalf of the Trustee pursuant to the provisions of this Indenture . (c) The Trustee shall Authenticate Uncertificated Debentures (whether upon original issuance, exchange, registration of transfer or otherwise) by completing its Internal Procedures and the Company shall, and hereby acknowledges that it shall, thereupon be deemed to have duly and validly issued such Uncertificated Debentures hereunder and that the holder or holders are entitled to the benefits of this Indenture . The register shall be final and conclusive evidence as to all matters relating to Uncertificated Debentures with respect to which this Indenture requires the Trustee to maintain records or accounts . In case of differences between the register at any time and any other time the register at the later time shall be controlling, absent manifest error and such Uncertificated Debentures are binding on the Company . 5. Interim Debenture Certificates Pending the delivery of definitive Debentures of any series to the Trustee, the Company may issue and the Trustee may Authenticate in lieu thereof interim Debentures in such forms and in such denominations and signed in such manner as provided herein, entitling the holders thereof to definitive Debentures of the series when the same are ready for delivery ; or the Company may execute and the Trustee may Authenticate a temporary Debenture for the whole principal amount of Debentures of the series then authorized to be issued hereunder and deliver the same to the Trustee and thereupon the Trustee may issue its own interim certificates in such form and in such amounts, not exceeding in the aggregate the principal amount of the temporary Debenture so delivered to it, as the Company and the Trustee may approve entitling the holders thereof to

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 21 - definitive Debentures of the series when the same are ready for delivery ; and, when so issued and Authenticated, such interim or temporary Debentures or interim certificates shall, for all purposes but without duplication, rank in respect of this Indenture equally with Debentures duly issued hereunder and, pending the exchange thereof for definitive Debenture Certificates, the holders of the interim or temporary Debentures or interim certificates shall be deemed without duplication to be Debentureholders and entitled to the benefit of this Indenture to the same extent and in the same manner as though the said exchange had actually been made . Forthwith after the Company shall have delivered the definitive Debenture Certificates to the Trustee, the Trustee shall cancel such temporary Debentures, if any, and shall call in for exchange all interim Debenture Certificates that shall have been issued and forthwith after such exchange shall cancel the same . No charge shall be made by the Company to the holders of such interim or temporary Debentures Certificates for the exchange thereof . 6. Mutilation, Loss, Theft  or Destruction In case any of the Debentures issued hereunder shall become mutilated or be lost, stolen or destroyed, the Company, in its discretion, may issue, and thereupon the Trustee shall Authenticate and deliver, a new Debenture upon surrender and cancellation of the mutilated Debenture, or in the case of a lost, stolen or destroyed Debenture, in lieu of and in substitution for the same, and the substituted Debenture shall be in a form approved by the Trustee and shall be entitled to the benefits of this Indenture and rank equally in accordance with its terms with all other Debentures issued or to be issued hereunder . In case of loss, theft or destruction the applicant for a substituted Debenture shall furnish to the Company and to the Trustee such evidence of the loss, theft or destruction of the Debenture as shall be satisfactory to them in their discretion and shall also furnish an indemnity and surety bond satisfactory to them in their discretion . The applicant shall pay all reasonable expenses incidental to the issuance of any substituted Debenture . 7. Concerning Interest (a) Except as may otherwise be provided in this Indenture or in a Written Direction of the Company and subject to Section 2 . 1 (d) with respect to the calculation of interest in respect of the initial interest payment to be paid on the Debentures, all Debentures issued hereunder, whether originally or upon exchange or in substitution for previously issued Debentures which are interest bearing, shall bear interest (i) from and including the Issue Date, or (ii) from and including the last Interest Payment Date to which interest shall have been paid or made available for payment on the outstanding Debentures, whichever shall be the later, in all cases, to and excluding the next Interest Payment Date . (b) Unless otherwise specifically provided in the terms of the Debentures, interest shall be computed on the basis of a year of 365 days . With respect to any series of Debentures, whenever interest is computed on the basis of a year (the " deemed year ") which contains fewer days than the actual number of days in the calendar year of calculation, such rate of interest shall be expressed as a yearly rate for purposes of the Interest Act (Canada) by multiplying such rate of interest by the actual number of days in the calendar year of calculation and dividing it by the number of days in the deemed year .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 22 - 8. Debentures  to  Rank Pari Passu The Debentures will be direct unsecured subordinated obligations of the Company . Each Debenture will rank pari passu with each other Debenture and subject to statutory preferred exceptions, with all other present and future subordinated and unsecured indebtedness of the Company, other than Senior Indebtedness, to the extent that such other existing and future subordinated unsecured indebtedness of the Company is subordinated on the same terms . 9. Payments  of  Amounts Due on Maturity Payments of amounts due upon maturity of the Debentures will be made in the following manner . The Company will establish and maintain with the Trustee a Maturity Account for each series of Debentures . Each such Maturity Account shall be maintained by and be subject to the control of the Trustee for the purposes of this Indenture . On or before 11 : 00 a . m . (Toronto time) on the Business Day immediately prior to each Maturity Date for Debentures outstanding from time to time under this Indenture, the Company will deliver to the Trustee a wire transfer for deposit in the applicable Maturity Account in an amount sufficient to pay the cash amount payable in respect of such Debentures (including the Maturity Date Payment together with any accrued and unpaid interest thereon less any tax required by law to be deducted) . The Trustee, on behalf of the Company, will pay to each holder entitled to receive payment of the principal and the interest (if any) on the Debenture, upon surrender of the Debenture at the Toronto office of the Trustee designated for such purpose from time to time by the Company and the Trustee . The delivery of such funds to the Trustee for deposit to the applicable Maturity Account will satisfy and discharge the liability of the Company for the Debentures to which the delivery of funds relates to the extent of the amount delivered (plus the amount of any tax deducted as aforesaid) and such Debentures will thereafter to that extent not be considered as outstanding under this Indenture and such holder will have no other right in regard thereto other than to receive out of the money so delivered or made available the amount to which it is entitled . 10. Payment  of  Interest Subject to the provisions of Section 2 . 1 (g) , as interest becomes due on each Debenture (except, subject to certain exceptions set forth herein including conversion, when interest may at the option of the Company be paid upon surrender of such Debenture), the Company, either directly or through the Trustee or any agent of the Trustee, shall send or forward by prepaid ordinary mail, electronic transfer of funds or such other means as may be agreed to by the Trustee, payment of such interest (less any tax required to be withheld therefrom) to the order of the registered holder of such Debenture appearing on the registers maintained by the Trustee at the close of business on the applicable Interest Record Date and addressed to the holder at the holder's last address appearing on the register, unless such holder otherwise directs . If payment is made by cheque, such cheque shall be forwarded at least three days prior to each date on which interest becomes due and if payment is made by other means (such as electronic transfer of funds, provided the Trustee must receive confirmation of receipt of funds prior to being able to wire funds to holders), such payment shall be made in a manner whereby the holder receives credit for such payment on the Interest Payment Date . The Trustee shall only mail in advance of any Interest Payment Date if it is already in clear receipt of the funds which it is forwarding . The mailing of such cheque or the making of such payment by other means shall, to the extent of the sum represented thereby, plus the amount

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 23 - of any tax withheld as aforesaid, satisfy and discharge all liability for interest on such Debenture, unless in the case of payment by cheque, such cheque is not paid at par on presentation . In the event of non - receipt of any cheque for or other payment of interest by the Person to whom it is so sent as aforesaid, the Company will issue to such Person a replacement cheque or other payment for a like amount upon being furnished with such evidence of non - receipt as it shall reasonably require and upon being indemnified to its satisfaction . Notwithstanding the foregoing, if the Company is prevented by circumstances beyond its control (including, without limitation, any interruption in mail service) from making payment of any interest due on each Debenture in the manner provided above, the Company may make payment of such interest or make such interest available for payment in any other manner acceptable to the Trustee with the same effect as though payment had been made in the manner provided above . In respect of Uncertificated Debentures, all payments of cash interest shall be made by wire funds transfers made payable : (i) to the Depository or its nominee, unless the Company and CDS otherwise agree ; or (ii) if the Company wishes to have the Trustee act as interest paying agent, to the Trustee by no later than 11 : 00 a . m . on the Business Day prior to the Interest Payment Date for subsequent payment to the Depositary for payment to Beneficial Holders of the applicable Uncertificated Debenture via its participants . None of the Company, the Trustee or any agent of the Trustee for any Debenture issued as an Uncertificated Debenture will be liable or responsible to any Person for any aspect of the records related to or payments made on account of beneficial interests in any Uncertificated Debenture or for maintaining, reviewing, or supervising any records relating to such beneficial interests . For greater certainty, it is acknowledged and agreed that under no circumstances will the Trustee be responsible for any tax withholding which may be required in connection with the Debentures . It is further acknowledged and agreed that any tax withholding in connection with the Uncertificated Debentures will be done by Participants of CDS, in accordance with their customary practices and procedures . 2.11 Canadian  Legend The certificates or other instruments representing the Debentures, and the certificates representing any Unit Shares or Warrants issued upon conversion of such Debentures, if issued prior to the expiration of the applicable hold period, will bear the following legend in accordance with Applicable Securities Legislation : "UNLESS PERMITTED BY SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE AUGUST 4 , 2019 . " And, if required by the policies of the TSX - V, the certificates or ownership statements representing the Debentures (and any replacement certificate or ownership statement issued prior to the expiration of the applicable hold periods), if any, will bear a legend substantially in the following form : "WITHOUT THE PRIOR WRITTEN APPROVAL OF TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 24 - APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL AUGUST 4 , 2019 . " 12. U.S. Legend (a) The Debentures and the Common Shares and Warrants issuable upon conversion thereof have not been and will not be registered under the U . S . Securities Act or any state securities laws . To the extent that Debentures are issued to U . S . Purchasers, such Debentures and all Common Shares and Warrants issuable on conversion thereof (together, the " Legended Securities ") shall bear the following legend (the " U . S . Legend ") until such time as the same is no longer required under applicable requirements of the U . S . Securities Act or state securities laws : "THE SECURITIES REPRESENTED HEREBY [IN THE CASE OF DEBENTURES AND WARRANTS : AND THE SECURITIES ISSUABLE UPON CONVERSION OR EXERCISE HEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 , AS AMENDED (THE "SECURITIES ACT"), OR ANY LAWS OF ANY STATE OF THE UNITED STATES . THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR THE BENEFIT OF POET TECHNOLOGIES INC . (THE "CORPORATION") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U . S . SECURITIES ACT PROVIDED BY : ( 1 ) RULE 144 THEREUNDER, IF AVAILABLE ; OR ( 2 ) RULE 144 A THEREUNDER, IF AVAILABLE, AND IN BOTH CASES, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)( 1 ) OR (D) ABOVE, THE SELLER FURNISHES TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR SUCH OTHER EVIDENCE IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO SUCH EFFECT . DELIVERY OF THIS CERTIFICATE MAY NOT

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 25 - CONSTITUTE " G OO D DEL IVERY" IN S ETT L E M E NT O F   TRANSACTIONS ON STOCK EXCHANGES IN CANADA." provided, that if such Legended Securities are being transferred in compliance with the requirements of Rule 904 of Regulation S under the U . S . Securities Act and subject to the expiry of any hold or restricted period under Canadian securities laws, the above legend may be removed by providing a declaration to the transfer agent for the applicable securities to the following effect (or as the Company may prescribe from time to time) (together with any other evidence required by the transfer agent for the applicable securities, which may, without limitation, include an opinion of counsel of recognized standing reasonably satisfactory to the Company, to the effect that such legend is no longer required under the applicable requirements of the U . S . Securities Act) : "The undersigned (a) acknowledges that the sale of of POET Technologies Inc . (the " Corporation ") to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933 , as amended (the " U . S . Securities Act "), and (b) certifies that ( 1 ) the undersigned is not an "affiliate" (as that term is defined in Rule 405 under the U . S . Securities Act) of the Corporation (other than an officer or director of the Corporation who is an affiliate solely by virtue of holding such position), ( 2 ) the offer of such securities was not made to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (B) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States, ( 3 ) neither the seller nor any affiliate of the seller nor any person acting on any of their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities, ( 4 ) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144 (a)( 3 ) under the U . S . Securities Act), ( 5 ) the seller does not intend to replace such securities with fungible unrestricted securities and ( 6 ) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S under the U . S . Securities Act, is part of a plan or scheme to evade the registration provisions of the U . S . Securities Act . Terms used herein have the meanings given to them by Regulation S under the U . S . Securities Act . " (b) The parties hereto hereby acknowledge and agree that the Legended Securities may not be reoffered, or resold, pledged or otherwise transferred except : (i) to the Company ; (ii) outside the United States in accordance with Rule 904 of Regulation S and in compliance with applicable local laws and regulations ; (iii) in compliance with the exemption from registration under the U . S . Securities Act provided by (A) Rule 144 under the U . S . Securities Act, if available or (B) Rule 144 A under the U . S . Securities Act, if available, and, in each case, in accordance with applicable

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 26 - state securities laws ; or (iv) in another transaction that does not require registration under the U . S . Securities Act or any applicable state securities laws . (c) If required by the U . S . Securities Act or any applicable state securities laws, certificates representing Debentures issued pursuant to transfers of Debentures shall bear the legend set forth in Section 2 . 12 (a) above and the Company will provide direction to the Trustee to affix such legends to the applicable Debenture Certificates . ARTICLE  3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP 1. Fully Registered Debentures (a) With respect to Debentures issuable as Fully Registered Debentures, the Company shall cause to be kept by and at the principal offices of the Trustee in Toronto, Ontario and by the Trustee or such other registrar as the Company, with the approval of the Trustee, may appoint at such other place or places, if any, as may be specified in the Debentures of such series or as the Company may designate with the approval of the Trustee, a register in which shall be entered the names and addresses of the holders of Fully Registered Debentures and particulars of the Debentures held by them respectively and of all transfers of Fully Registered Debentures . Such registration shall be noted on the Debentures by the Trustee or other registrar unless a new Debenture shall be issued upon such transfer . (b) No transfer of a Fully Registered Debenture shall be valid unless made on such register referred to in subsection 3 . 1 (a) by the registered holder or such holder's executors, administrators or other legal representatives or an attorney duly appointed by an instrument in writing in form and executed in a manner satisfactory to the Trustee or other registrar upon surrender of the Debentures together with a duly executed form of transfer acceptable to the Trustee upon compliance with such other reasonable requirements as the Trustee or other registrar may prescribe, or unless the name of the transferee shall have been noted on the Debenture by the Trustee or other registrar . 2. Transfer and Exchange  of  Restricted Debentures (a) Transfer and Exchange of Restricted Debentures for Unrestricted Physical Debentures . A Restricted Debenture may be exchanged by the holder thereof for an Unrestricted Physical Debenture or transferred to a Person who takes delivery thereof in the form of an Unrestricted Physical Debenture if the Trustee receives a certificate from such holder in the form of Schedule "B" – Form of Transfer, including the certification in item (B) or (C)(i), and an opinion of counsel (or, if applicable, other evidence of exemption) in form reasonably satisfactory to the Company which provides for the removal of the U . S . Legend .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 27 - (b) Transfer and Exchange  of  Restricted Debentures  for  Restricted Debentures. A Restricted Debenture may be exchanged by the holder thereof for a Restricted Debenture or transferred to a Person who takes delivery thereof in the form of a Restricted Debenture if the Trustee receives a certificate from such holder in the form of Schedule "B" – Form of Transfer, and an opinion of counsel or other evidence of exemption in form reasonably satisfactory to the Company which does not provide for the removal of the U . S . Legend . 3. Transferee Entitled  to Registration The transferee of a Debenture shall be entitled, after the appropriate form of transfer is lodged with the Trustee or other registrar and upon compliance with all other conditions in that behalf required by this Indenture or by law, to be entered on the register as the owner of such Debenture free from all equities or rights of set - off or counterclaim between the Company and the transferor or any previous holder of such Debenture, save in respect of equities of which the Company is required to take notice by statute or by order of a court of competent jurisdiction . Upon surrender for registration of transfer of Debentures, the Company shall issue and thereupon the Trustee shall Authenticate and deliver a new Debenture Certificate or confirm the electronic deposit of Uncertificated Debentures of like tenor in the name of the designated transferee and register such transfer in accordance with Section 3 . 1 (b) . If less than all the Debentures evidenced by the Debenture Certificate(s) or Uncertificated Debentures so surrendered are transferred, the transferor shall be entitled to receive, in the same manner, a new Debenture Certificate or electronically deposited Uncertificated Debentures registered in his name evidencing the Debentures not transferred . 4. No Notice  of Trusts Neither the Company nor the Trustee nor any registrar shall be bound to take notice of or see to the execution of any trust (other than that created by this Indenture) whether express, implied or constructive, in respect of any Debenture, and may transfer the same on the direction of the Person registered as the holder thereof, whether named as trustee or otherwise, as though that Person were the beneficial owner thereof . 5. Registers Open  for  Inspection The register referred to in Section 3 . 1 shall at all reasonable times be open for inspection by the Company, the Trustee or any Debentureholder . Every registrar, including the Trustee, shall from time to time when requested so to do by the Company, in writing, furnish the Company with a list of names and addresses of holders of registered Debentures entered on the register kept by them and showing the principal amount and serial numbers of the Debentures held by each such holder, provided the Trustee shall be entitled to charge a reasonable fee to the Company to provide such a list . 6. Exchanges  of Debentures (a) Subject  to  Sections  3.1 and  3.7 ,  Debentures  in any  authorized  form or   denomination,  other  than Uncertificated Debentures,  may be  exchanged for

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 28 - Debentures in any other authorized form or denomination, of the same series and date of maturity, bearing the same interest rate and of the same aggregate principal amount as the Debentures so exchanged . (b) In respect of exchanges of Debentures permitted by subsection 3 . 6 (a) , Debentures of any series may be exchanged only at the principal offices of the Trustee in the city of Toronto, Ontario or at such other place or places, if any, as may be specified in the Debentures of such series and at such other place or places as may from time to time be designated by the Company with the approval of the Trustee . Any Debentures tendered for exchange shall be surrendered to the Trustee . The Company shall execute and the Trustee shall certify all Debentures necessary to carry out exchanges as aforesaid . All Debentures surrendered for exchange shall be cancelled . (c) Debentures issued in exchange for Debentures which at the time of such issue have been selected or called for redemption at a later date shall be deemed to have been selected or called for redemption in the same manner and shall have noted thereon a statement to that effect . 7. Closing  of Registers (a) Neither  the Company nor the  Trustee  nor  any  registrar shall  be  required to: (i) issue, make transfers or exchanges or convert any Fully Registered Debentures between the Interest Record Date and any Interest Payment Date for such Debentures ; (ii) make  transfers  or  exchanges  of, or convert  any  Debentures,  on or one   Business  Day prior to the  Change  of Control  Purchase Date; or (iii) make  transfers, exchanges,  or  conversions  of  any  Debentures  on the   Maturity Date. (b) Subject to any restriction herein provided, the Company with the approval of the Trustee may at any time close the register of Debentures, other than those kept at the principal offices of the Trustee in Toronto, Ontario, and transfer the registration of any Debentures registered thereon to another register (which may be an existing register) and thereafter such Debentures shall be deemed to be registered on such other register . Notice of such transfer shall be given to the holders of such Debentures . 3.8 Charges  for  Registration, Transfer and Exchange For each Debenture exchanged, registered, transferred or discharged from registration, the Trustee or other registrar, except as otherwise herein provided, may make a reasonable charge to the Company for its services and in addition may charge a reasonable sum for each new Debenture issued (such amounts to be agreed upon from time to time by the Trustee and the Company), and payment of such charges and reimbursement of the Trustee or other registrar for any stamp taxes

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 29 - or governmental or other charges required to be paid shall be made by the party requesting such exchange, registration, transfer or discharge from registration as a condition precedent thereto . Notwithstanding the foregoing provisions, no charge shall be made to the Debentureholders hereunder : (a) for any exchange, registration, transfer or discharge from registration of any Debenture applied for within a period of two months from the date of the first delivery of Debentures ; (b) for any exchange of any interim or temporary Debenture or interim certificate that has been issued under Section 2 . 5 for a definitive Debenture ; or (c) for  any  exchange of  an Uncertificated Debenture  as  contemplated  in  Sec tion 3.1 . 9. Ownership  of Debentures (a) Unless otherwise required by law, the Person in whose name any registered Debenture is registered shall for all purposes of this Indenture be and be deemed to be the owner thereof and payment of or on account of the principal and/or the interest (if any) thereon shall be made to such registered holder . (b) The registered holder for the time being of any registered Debenture shall be entitled to the principal and/or the interest (if any) evidenced by such instruments, respectively, free from all equities or rights of setoff or counterclaim between the Company and the original or any intermediate holder thereof and all Persons may act accordingly and the receipt of any such registered holder for any such principal and/or the interest (if any) shall be a good discharge to the Trustee, any registrar and to the Company for the same and none shall be bound to inquire into the title of any such registered holder . (c) Where Debentures are registered in more than one name, the principal and/or the interest (if any) from time to time payable in respect thereof may, upon the delivery of such reasonable requirements as the Trustee may prescribe, be paid to the order of any one of such holders, failing written instructions from them to the contrary, and the receipt of any one of such holders therefor shall be a valid discharge, to the Trustee, any registrar and to the Company . (d) In the case of the death of one or more joint holders of any Debenture the principal and/or the interest (if any) payable thereon may upon the transfer of such Debenture be paid to the order of the survivor or survivors of such registered holders and the receipt of any such survivor or survivors therefor shall be a valid discharge to the Trustee and any registrar and to the Company .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 30 - ARTICLE  4   PURCHASE  OF DEBENTURES 1. Put  Right upon Closing  of DenseLight Transaction Upon the closing of the DenseLight Transaction and subject to the provisions and conditions of this Section 4 . 1 , holders of Debentures shall have a right to require the Company to purchase their Debentures . The terms and conditions of such right are set forth below : (a) Following the closing of the DenseLight Transaction and prior to the Maturity Date, each holder of Debentures shall have the right (the " Put Right ") to require the Company to purchase, on the last day of each calendar month (or the first Business Day after such date if not a Business Day) (each, a " Put Date "), all or any part of such holder's outstanding Debentures in accordance with the requirements of Applicable Securities Legislation in cash at a price equal to the principal amount thereof (the " Put Price ") plus accrued and unpaid interest, if any, on such Debentures up to, but excluding, the Put Date (collectively, the " Total Put Price "), in accordance with and subject to the terms of this Section 4 . 1 . If less than the full principal amount of such Debentures is being put to the Company, such amount must be $ 1 , 000 or integral multiples thereof . (b) The Company will, as soon as practicable, and in any event no later than three Business Days after the closing of the DenseLight Transaction, give written notice to the Trustee of the closing of the DenseLight Transaction . The Trustee will, as soon as practicable thereafter, and in any event no later than two Business Days after receiving notice from the Company of the closing of the DenseLight Transaction, provide written notice to the holders of Debentures of the closing of the DenseLight Transaction (the " Put Right Notice ") . The Put Right Notice shall be prepared by the Company and shall include (i) a brief description of the DenseLight Transaction ; and (ii) details of the Put Right under the terms of this Indenture . (c) To exercise the Put Right, the applicable holder of Debentures must deliver to the Trustee, not less than five Business Days prior to the applicable Put Date (such date, in each calendar month, the " Monthly Put Right Deadline "), written notice of such holder's intent to exercise such right in the form attached hereto as Schedule "E", together with the Debentures with respect to which the Put Right is being exercised, duly endorsed for transfer or, with respect to a Global Debenture, such Depository shall deliver such Global Debenture to the Trustee who shall make notations on the Global Debenture of the principal amount thereof with respect to which the right is being exercised . For greater certainty, any Debentures delivered subsequent to the Monthly Put Right Deadline shall be deemed to have been delivered for purchase by the Company pursuant to the Put Right in the next calendar month . (d) Debentures for which holders have exercised the Put Right shall become due and payable at the Total Put Price on the third Business Day following each Put Date

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 31 - (each, a " Payment Date "), in the same manner and with the same effect as if the Put Date were the date of maturity specified in such Debentures . Notwithstanding anything therein or herein to the contrary, and from and after such Put Date, if the funds necessary to purchase or redeem the Debentures shall have been deposited as provided in Sec tion 4 . 1 (h) and affidavits or other proofs satisfactory to the Trustee as to the publication and/or mailing of such notices shall have been lodged with it, interest on the Debentures shall cease . If any question shall arise as to whether any notice has been given as above provided and such deposit made, such question shall be decided by the Trustee whose decision shall be final and binding upon all parties in interest . (e) The maximum aggregate principal amount of Debentures that may be surrendered by holders of Debentures for purchase by the Company pursuant to the Put Right in any calendar month is $ 1 , 000 , 000 (the " Maximum Monthly Put Right Amount ") . (f) If the Total Put Price of the Debentures delivered to the Trustee during a calendar month to be purchased by the Company pursuant to the Put Right on the Put Date applicable to such calendar month exceeds the Maximum Monthly Put Right Amount, the Debentures to be purchased or redeemed by the Company from each holder under this Section 4 . 1 shall be reduced on a pro rata basis (in the minimum amount of $ 1 , 000 or multiples of $ 1 , 000 ) such that the Total Put Price to be paid by the Company for such Debentures shall be equal to the Maximum Monthly Put Right Amount . (g) In the event that one or more of such Debentures being purchased in accordance with this Section 4 . 1 becomes subject to purchase in part only, (i) if such Debentures are not in the form of a Global Debenture, upon surrender of such Debentures for payment of the Total Put Price, the Company shall execute and the Trustee shall certify and deliver without charge to the holder thereof or upon the holder's order, one or more new Debentures for the portion of the principal amount of the Debentures not purchased, or (ii) with respect to a Global Debenture, the Depository shall deliver such Global Debenture to the Trustee who shall make notations on the Global Debenture of the principal amount thereof so purchased . (h) The Company shall, on or before 11 : 00 a . m . (Toronto time) on the Business Day immediately prior to each Payment Date, deposit with the Trustee or any paying agent to the order of the Trustee, such funds as may be sufficient to pay the Maximum Monthly Put Right Amount or such lesser principal amount of Debentures as have been delivered to the Trustee for purchase by the Company prior to the applicable Monthly Put Right Deadline . The Company shall satisfy this requirement by providing the Trustee or paying agent with an electronic funds transfer for such amounts required under this Section 4 . 1 . To the extent requested by the Trustee, the Company shall also deposit with the Trustee funds sufficient to pay any charges or expenses which may be reasonably incurred by the Trustee in connection with such purchase and/or redemption, as the case may be . From the sums so deposited, the Trustee shall pay or cause to be paid to the holders of such

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 32 - Debentures, the Total Put Price to which they are entitled on the Company's purchase or redemption . The Trustee shall not be responsible for calculating the amount owing but shall be entitled to rely on the Written Direction of the Company specifying the payments to be made . (i) Subject to the provisions above related to Debentures purchased in part, all Debentures redeemed and paid under this Section 4 . 1 shall forthwith be delivered to the Trustee and cancelled and no Debentures shall be issued in substitution therefor . (j) The Company  will  comply with  all Applicable  Securities  Legislation  in the event   that the Company is required to repurchase Debentures pursuant to this Section 4.1 . 2. Purchase  of  Debentures by the Company (a) Subject to regulatory approval, unless otherwise specifically provided with respect to a particular series of Debentures, the Company may, if it is not at the time in default hereunder and provided that no Event of Default has occurred and is continuing, at any time and from time to time, purchase Debentures in the market (which shall include purchases from or through an investment dealer or a firm holding membership on a recognized stock exchange) or by tender or by contract, at any price . All Debentures so purchased will be delivered to the Trustee and shall be cancelled and no Debentures shall be issued in substitution therefor . (b) If, upon an invitation for tenders, more Debentures are tendered at the same lowest price than the Company is prepared to accept, the Debentures to be purchased by the Company shall be selected by the Trustee on a pro rata basis from the Debentures tendered by each tendering Debentureholder who tendered at such lowest price . For this purpose the Trustee may make, and from time to time amend, regulations with respect to the manner in which Debentures may be so selected, and regulations so made shall be valid and binding upon all Debentureholders, notwithstanding the fact that as a result thereof one or more of such Debentures become subject to purchase in part only . The holder of a Debenture of which a part only is purchased, upon surrender of such Debenture for payment, shall be entitled to receive, without expense to such holder, one or more new Debentures for the unpurchased part so surrendered, and the Trustee shall Authenticate and deliver such new Debenture or Debentures upon receipt of the Debenture so surrendered or, with respect to an Uncertificated Debenture, the Depository shall electronically deposit the unpurchased part so surrendered . ARTICLE  5   SUBORDINATION  OF DEBENTURES 5.1 Applicability  of Article The indebtedness, liabilities and obligations of the Company hereunder (except as provided in Section 12 . 13 ) or under the Debentures, whether on account of principal, premium, if any, interest or otherwise, but excluding the issuance of Unit Shares and Warrants upon any conversion

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 33 - pursuant to Article 6 (collectively, the " Debenture Liabilities "), shall be subordinated and postponed and subject in right of payment, to the extent and in the manner hereinafter set forth in the following Sections of this Article 5 , to the full and final payment of all Senior Indebtedness, and each holder of any such Debenture by his acceptance thereof agrees to and shall be bound by the provisions of this Article 5 . 2. Order of Payment In the event of any insolvency or bankruptcy proceedings, or any receivership, liquidation, reorganization or other similar proceedings relative to the Company, or to its property or assets, or in the event of any proceedings for voluntary liquidation, dissolution or voluntary winding - up of the Company, whether or not involving insolvency or bankruptcy, or any marshalling of the assets and liabilities of the Company : (a) all Senior Indebtedness shall first be paid in full, or provision made for such payment, before any payment is made on account of Debenture Liabilities ; (b) any payment or distribution of assets of the Company, whether in cash, property or securities, to which the holders of the Debentures or the Trustee on behalf of such holders would be entitled except for the provisions of this Article 5 , shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the benefit of creditors, or other liquidating agent making such payment or distribution, directly to the holders of Senior Indebtedness or their representative or representatives, or to the trustee or trustees under any indenture pursuant to which any instruments evidencing any of such Senior Indebtedness may have been issued, to the extent necessary to pay all Senior Indebtedness in full after giving effect to any concurrent payment or distribution, or provision therefor, to the holders of such Senior Indebtedness ; (c) the Senior Creditors or a receiver or a receiver - manager of the Company or of all or part of its assets or any other enforcement agent may sell, mortgage or otherwise dispose of the Company's assets in whole or in part, free and clear of all Debenture Liabilities and without the approval of the Debentureholders or the Trustee or any requirement to account to the Trustee or the Debentureholders ; and (d) the rights and priority of the Senior Indebtedness and the subordination pursuant hereto shall not be affected by : (i) whether  or  not  the  Senior Indebtedness is secured; (ii) the time, sequence or order of creating, granting, executing, delivering of, or registering, perfecting or failing to register or perfect any security notice, caveat, financing statement or other notice in respect of the Senior Security ; (iii) the time or order  of  the  attachment, perfection  or  crystallization  of  any   security  constituted  by the  Senior Security;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 34 - (iv) the taking of  any  collection, enforcement  or  realization proceedings   pursuant  to the Senior Security; (v) the date of obtaining of any judgment or order of any bankruptcy court or any court administering bankruptcy, insolvency or similar proceedings as to the entitlement of the Senior Creditors, or any of them or the Debentureholders or any of them to any money or property of the Company ; (vi) the failure to exercise any power or remedy reserved to the Senior Creditors under the Senior Security or to insist upon a strict compliance with any terms thereof ; (vii) whether any Senior Security is now perfected, hereafter ceases to be perfected, is voidable by any trustee in bankruptcy or like official or is otherwise set aside, invalidated or lapses ; (viii) the  date  of  giving  or failing to  give notice  to or making demand upon the   Company;  or (ix) any other  matter whatsoever. 3. Subrogation  to  Rights  of  Holders  of  Senior Indebtedness Subject to the prior payment in full of all Senior Indebtedness, the holders of the Debentures shall be subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions of assets of the Company to the extent of the application thereto of such payments or other assets which would have been received by the holders of the Debentures but for the provisions hereof until the principal of, premium, if any, and interest on the Debentures shall be paid in full, and no such payments or distributions to the holders of the Debentures of cash, property or securities, which otherwise would be payable or distributable to the holders of the Senior Indebtedness, shall, as between the Company, its creditors other than the holders of Senior Indebtedness, and the holders of Debentures, be deemed to be a payment by the Company to the holders of the Senior Indebtedness or on account of the Senior Indebtedness, it being understood that the provisions of this Article 5 are and are intended solely for the purpose of defining the relative rights of the holders of the Debentures, on the one hand, and the holders of Senior Indebtedness, on the other hand . The Trustee, for itself and on behalf of each of the Debentureholders, hereby waives any and all rights to require a Senior Creditor to pursue or exhaust any rights or remedies with respect to the Company or any property and assets subject to any Senior Security or in any other manner to require the orderly disposition of property, assets or security in connection with the exercise by the Senior Creditors of any rights, remedies or recourses available to them . 4. Obligation to  Pay  Not Impaired Nothing contained in this Article 5 or elsewhere in this Indenture or in the Debentures is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness, and the holders of the Debentures, the obligation of the Company, which is absolute

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 35 - and unconditional, to pay to the holders of the Debentures the principal of, premium, if any, and interest on the Debentures, as and when the same shall become due and payable in accordance with their terms, or affect the relative rights of the holders of the Debentures and creditors of the Company other than the holders of the Senior Indebtedness, nor shall anything herein or therein prevent the Trustee or the holder of any Debenture from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article 5 of the holders of Senior Indebtedness . 5. Payment on Debentures Permitted Nothing contained in this Article 5 or elsewhere in this Indenture, or in any of the Debentures, shall affect the obligation of the Company to make, or prevent the Company from making, at any time except as prohibited by Sections 5 . 2 , any payment of principal of or, premium, if any, or interest on the Debentures . The fact that any such payment is prohibited by Sections 5 . 2 shall not prevent the failure to make such payment from being an Event of Default hereunder . Nothing contained in this Article 5 or elsewhere in this Indenture, or in any of the Debentures, shall prevent the conversion of the Debentures or, except as prohibited by Sections 5 . 2 , the application by the Trustee of any monies deposited with the Trustee hereunder for the purpose, to the payment of or on account of the Debenture Liabilities . 6. Knowledge  of  Trustee Notwithstanding the provisions of this Article 5 or any provision in this Indenture or in the Debentures contained, the Trustee will not be charged with knowledge of any Senior Indebtedness or of any default in the payment thereof, or of the existence of any Event of Default or any other fact that would prohibit the making of any payment of monies to or by the Trustee, or the taking of any other action by the Trustee, unless and until the Trustee has received written notice thereof from the Company, any Debentureholder or any Senior Creditor . 7. Trustee May  Hold  Senior Indebtedness The Trustee is entitled to all the rights set forth in this Article 5 with respect to any Senior Indebtedness at the time held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in this Indenture deprives the Trustee of any of its rights as such holder . 8. Rights  of  Holders  of  Senior Indebtedness Not Impaired No right of any present or future holder of any Senior Indebtedness to enforce the subordination herein will at any time or in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any non - compliance by the Company with the terms, provisions and covenants of this Indenture, regardless of any knowledge thereof which any such holder may have or be otherwise charged with . 9. Altering the Senior Indebtedness The holders of the Senior Indebtedness have the right to extend, renew, modify or amend the terms of the Senior Indebtedness or any security therefor and to release, sell or exchange such security and otherwise to deal freely with the Company, all without notice to or consent of the

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 36 - Debentureholders or the Trustee and without affecting the liabilities and obligations of the parties to this Indenture or the Debentureholders . 10. Additional Indebtedness This Indenture does not restrict the Company from incurring additional indebtedness for borrowed money or other obligations or liabilities (including Senior Indebtedness) or mortgaging, pledging or charging its properties to secure any indebtedness or obligations or liabilities . 11. Right  of  Debentureholder  to  Convert Not Impaired The subordination of the Debentures to the Senior Indebtedness and the provisions of this Article 5 do not impair in any way the right of a Debentureholder to convert its Debentures pursuant to Article 6 . 12. Invalidated Payments In the event that any of the Senior Indebtedness shall be paid in full and subsequently, for whatever reason, such formerly paid or satisfied Senior Indebtedness becomes unpaid or unsatisfied, the terms and conditions of this Article 5 shall be reinstated and the provisions of this Article 5 shall again be operative until all Senior Indebtedness is repaid in full, provided that such reinstatement shall not give the Senior Creditors any rights or recourses against the Trustee or the Debentureholders for amounts paid to the Debentureholders subsequent to such payment or satisfaction in full and prior to such reinstatement . 13. Contesting Security The Trustee, for itself and on behalf of the Debentureholders, agrees that it shall not contest or bring into question the validity, perfection or enforceability of any of the Senior Indebtedness, the Senior Security, or the relative priority of the Senior Security . ARTICLE  6   CONVERSION  OF DEBENTURES 1. Applicability  of Article (a) Any Debentures issued hereunder will be convertible into Units comprised of Unit Shares and Warrants, at the Conversion Price in accordance with such other provisions as shall have been determined at the time of issue of such Debentures and shall have been expressed in this Indenture (including subsection 2 . 1 (f) and Section 3 . 7 hereof), in such Debentures, in an Officer's Certificate, or in a supplemental indenture authorizing or providing for the issue thereof . (b) Such right of conversion shall extend only to the maximum number of whole Unit Shares and Warrants into which the aggregate principal amount of the Debenture or Debentures surrendered for conversion at any one time by the holder thereof may be converted . Fractional interests in Unit Shares and Warrants shall be adjusted for in the manner provided in Subsection 6 . 1 (c) .

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 37 - (c) The Company shall not be required to issue fractional Unit Shares or fractional Warrants upon the conversion of Debentures into Units pursuant to this Article . Fractional Unit Shares or Warrants will be rounded down to the nearest whole Unit Share and Warrant without the payment of any compensation to the holder . If more than one Debenture shall be surrendered for conversion at one time by the same holder, the number of whole Unit Shares and whole Warrants issuable upon conversion thereof shall be computed on the basis of the aggregate principal amount of such Debentures to be converted . (d) The Company covenants with the Trustee that it will at all times reserve and keep available out of its authorized Common Shares and Warrants (if the number thereof is or becomes limited), solely for the purpose of issue upon conversion of Debentures as in this Article provided, and conditionally allot to Debentureholders who may exercise their conversion rights hereunder, such number of Unit Shares as shall then be issuable upon the conversion of all outstanding Debentures, including such number of Warrant Shares as shall then be issuable upon due exercise of the Warrants in accordance with the terms of the Warrant Indenture . The Company covenants with the Trustee that all Common Shares which shall be so issuable shall be duly and validly issued as fully - paid and non - assessable . 2. Notice  of Expiry of  Conversion Privilege Notice of the expiry of the conversion privileges of the Debentures shall be given by or on behalf of the Company, not more than 60 days and not less than 30 days prior to the Maturity Date, in the manner provided in Section 11 . 2 . 3. Revival  of  Right to Convert If the payment of the purchase price of any Debenture which has been tendered in acceptance of an offer to purchase by the Company pursuant to Section 2 . 1 (h) is not made on the date on which such purchase is required to be made, as the case may be, then, provided the Time of Expiry has not passed, the right to convert such Debentures shall revive and continue as if such Debenture had not been called for redemption or tendered in acceptance of the Company’s offer, respectively . 4. Manner  of  Exercise  of  Right to Convert (a) The holder of a Debenture desiring to convert such Debenture in whole or in part into Units shall surrender such Debenture to the Trustee at its principal office in the City of Toronto, Ontario together with the conversion notice in the form of Schedule "C" or any other written notice in a form satisfactory to the Trustee, duly executed by the holder or his executors or administrators or other legal representatives or his or their attorney duly appointed by an instrument in writing in form and executed in a manner satisfactory to the Trustee, exercising his right to convert such Debenture in accordance with the provisions of this Article ; provided that with respect to an Uncertificated Debenture, registration and surrender of interests in the Debentures will be made only through the Depositary's non - certificated system . Thereupon such Debentureholder or, subject to payment of all

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 38 - applicable stamp or security transfer taxes or other governmental charges and compliance with all reasonable requirements of the Trustee, his nominee(s) or assignee(s) shall be entitled to be entered in the books of the Company as at the Date of Conversion (or such later date as is specified in subsection 6 . 4 (g) ) as the holder of the number of Unit Shares and Warrants, as applicable, comprising the Units into which such Debenture is convertible in accordance with the provisions of this Article and, as soon as practicable thereafter, the Company shall deliver to such Debentureholder or, subject as aforesaid, his nominee(s) or assignee(s), a certificate or certificates for such Common Shares and Warrants or deposit such Unit Shares and Warrants through the Depository's non - certificated system and make or cause to be made any payment of interest to which such holder is entitled in accordance with subsection 6 . 4 (j) . (b) A Beneficial Holder may exercise the right evidenced by a Debenture to receive Unit Shares and Warrants by causing a Participant to deliver to the Depository on behalf of the Beneficial Holder, a notice of such Beneficial Holder's intention to convert the Debentures in a manner acceptable to the Depository . Forthwith upon receipt by the Depository of such notice, the Depository shall deliver to the Trustee a Transaction Instruction confirming its intention to convert Debentures in a manner acceptable to the Trustee, including by electronic means through the non - certificated inventory system . (c) A notice in form acceptable to the Participant from such Beneficial Holder should be provided to the Participant sufficiently in advance so as to permit the Participant to deliver notice to the Depository and for the Depository in turn to deliver notice to the Trustee prior to the Time of Expiry . The Depository will initiate the exercise by way of the Transaction Instruction and the Trustee will execute the exercise by issuing to the Depository through the non - certificated inventory system the Common Shares and Warrants to which the exercising Debentureholder is entitled pursuant to the conversion . (d) By causing a Participant to deliver notice to the Depository, a Debentureholder shall be deemed to have irrevocably surrendered his or her Debentures so exercised and appointed such Participant to act as his or her exclusive settlement agent with respect to the conversion and the receipt of the Common Shares and Warrants in connection with the obligations arising from such conversion . (e) Any notice which the Depository determines to be incomplete, not in proper form, or not duly - executed shall for all purposes be void and of no effect and the exercise to which it relates shall be considered for all purposes not to have been exercised thereby . A failure by a Participant to exercise or to give effect to the settlement thereof in accordance with the Debentureholder's instructions will not give rise to any obligations or liability on the part of the Company or Trustee to the Participant or the Debentureholder . (f) Any  Transaction Instruction referred  to in this  Section  6.4  shall  be  signed  by  the   registered Debentureholder, or its executors or administrators or other legal

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 39 - representatives or an attorney of the registered Debentureholder, duly appointed by an instrument in writing satisfactory to the Trustee but such exercise form need not be executed by the Depository . (g) For the purposes of this Article, subject to Section 3 . 7 , a Debenture shall be deemed to be surrendered for conversion on the date (herein called the " Date of Conversion ") on which it is so surrendered when the register of the Trustee is open and in accordance with the provisions of this Article or, in the case of an Uncertificated Debenture which the Trustee received notice of and all necessary documentation in respect of the exercise of the conversion rights and, in the case of a Debenture so surrendered by mail or other means of transmission, on the date on which it is received by the Trustee at one of its offices specified in subsection 6 . 4 (a) ; provided that if a Debenture is surrendered for conversion on a day on which the register of Common Shares and Warrants is closed, the Person or Persons entitled to receive Unit Shares and Warrants shall become the holder or holders of record of such Unit Shares and Warrants as at the date on which such registers are next reopened . (h) Any part, being $ 1 , 000 or an integral multiple thereof, of a Debenture in a denomination in excess of $ 1 , 000 or an integral multiple thereof may be converted as provided in this Article and all references in this Indenture to conversion of Debentures shall be deemed to include conversion of such parts . (i) The holder of any Debenture of which only a part is converted shall, upon the exercise of his right of conversion surrender such Debenture to the Trustee in accordance with subsection 6 . 4 (a) , and the Trustee shall cancel the same and shall without charge to the Debentureholder forthwith Authenticate and deliver to the holder a new Debenture or Debentures in an aggregate principal amount equal to the unconverted part of the principal amount of the Debenture so surrendered or, with respect to an Uncertificated Debenture, registration and surrender of interests in the Debentures will be made only through the Depositary's non - certificated system . (j) The holder of a Debenture surrendered for conversion in accordance with this Section 6 . 4 shall be entitled to receive accrued and unpaid interest in respect thereof, in cash, up to but excluding the Date of Conversion and the Unit Shares and Warrants issued upon such conversion shall rank only in respect of distributions or dividends declared in favour of shareholders of record on and after the Date of Conversion or such later date as such holder shall become the holder of record of such Common Shares pursuant to subsection 6 . 4 (g) , from which applicable date they will for all purposes be and be deemed to be issued and outstanding as fully paid and non - assessable Common Shares and Warrants . 6.5 Adjustment  of  Conversion Price Subject to the requirements of the Stock Exchange, the Conversion Price in effect at any date shall   be  subject  to  adjustment from  time to time  as  set forth below.

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 40 - (a) If  and  whenever  at  any  time  during  the Adjustment  Period,  the Company shall: (i) fix a record date for the issue of, or issue, Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend or otherwise ; (ii) fix a record date for the distribution to, or make a distribution to, the holders of all or substantially all of the outstanding Common Shares payable in Common Shares or securities exchangeable or exercisable for or convertible into Common Shares ; (iii) subdivide,  re - divide  or change  its  then  outstanding  Common  Shares  into a   greater number  of Common  Shares;  or (iv) reduce, combine  or  consolidate its  then outstanding Common  Shares  into a   lesser number  of Common Shares, (any of such events in Sections 6 . 5 (a)(i), 6 . 5 (a)(ii) , 6 . 5 (a)(iii) and 6 . 5 (a)(iv) above being herein called a " Common Share Reorganization "), then the Conversion Price shall be adjusted on the earlier of the record date on which holders of Common Shares are determined for the purposes of the Common Share Reorganization and the effective date of the Common Share Reorganization to the amount determined by multiplying the Conversion Price in effect immediately prior to such record date or effective date, as the case may be, by a fraction : (i) the numerator of which shall be the number of Common Shares outstanding on such record date or effective date, as the case may be, before giving effect to such Common Share Reorganization ; and (ii) the denominator of which shall be the number of Common Shares which will be outstanding immediately after giving effect to such Common Share Reorganization (including in the case of a distribution of securities exchangeable or exercisable for or convertible into Common Shares, the number of Common Shares that would have been outstanding had such securities been exchanged or exercised for or converted into Common Shares on such date) . To the extent that any adjustment in the Conversion Price occurs pursuant to this Section 6 . 5 (a) as a result of the fixing by the Company of a record date for the distribution of securities exchangeable or exercisable for or convertible into Common Shares, the Conversion Price shall be readjusted immediately after the expiry of any relevant exchange, exercise or conversion right to the Conversion Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right . (b) If  at  any  time during the Adjustment  Period,  the Company shall fix a record  date   for the issue or distribution to the holders of all or substantially all of the

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 41 - outstanding Common Shares of rights, options or warrants pursuant to which such holders are entitled, during a period expiring not more than 45 days after the record date for such issue (such period being the " Rights Period "), to subscribe for or purchase Common Shares or securities exchangeable or exercisable for or convertible into Common Shares at a price per share to the holder (or in the case of securities exchangeable or exercisable for or convertible into Common Shares, at an exchange, exercise or conversion price per share) at the date of issue of such securities of less than 95 % of the Current Market Price of the Common Shares on such record date (any of such events being called a " Rights Offering "), the Conversion Price shall be adjusted effective immediately after the record date for such Rights Offering to the amount determined by multiplying the Conversion Price in effect on such record date by a fraction : (i) the  numerator  of  which  shall be the  aggregate of (1) the number  of  Common  Shares  outstanding on the  record  date for   the  Rights Offering, and (2) the quotient  determined  by dividing (A) either (a) the product of the number of Common Shares offered during the Rights Period pursuant to the Rights Offering and the price at which such Common Shares are offered, or, (b) the product of the exchange, exercise or conversion price of the securities so offered and the number of Common Shares for or into which the securities offered pursuant to the Rights Offering may be exchanged, exercised or converted, as the case may be, by (B) the Current Market Price of the Common Shares as of the record date for the Rights Offering ; and (ii) the denominator of which shall be the aggregate of the number of Common Shares outstanding on such record date and the number of Common Shares offered pursuant to the Rights Offering (including in the case of the issue or distribution of securities exchangeable or exercisable for or convertible into Common Shares the number of Common Shares for or into which such securities may be exchanged, exercised or converted) . If by the terms of the rights, options, or warrants referred to in this Section 6 . 5 (b) , there is more than one purchase, exchange, exercise or conversion price per Common Share, the aggregate price of the total number of additional Common Shares offered for subscription or purchase, or the aggregate exchange, exercise or conversion price of the exchangeable, exercisable or convertible securities so offered, shall be calculated for purposes of the adjustment on the basis of the lowest purchase, exchange, exercise or conversion price per Common Share, as the case may be . Any Common Shares owned by or held for the account of the Company

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 42 - shall be deemed not to be outstanding for the purpose of any such calculation . To the extent that any adjustment in the Conversion Price occurs pursuant to this Section 6 . 5 (b) as a result of the fixing by the Company of a record date for the issue or distribution of rights, options or warrants referred to in this Section 6 . 5 (b) , the Conversion Price shall be readjusted immediately after the expiry of any relevant exchange, exercise or conversion right to the Conversion Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right . To the extent that such Rights Offering is not ultimately so made, the Conversion Price shall then be readjusted to the Conversion Price which would then be in effect if such record date had not been fixed . (c) If at any time during the Adjustment Period the Company shall fix a record date for the issue or distribution to the holders of all or substantially all of the outstanding Common Shares of : (i) shares  of the Company  of  any  class  other  than  Common Shares; (ii) rights, options or warrants to acquire Common Shares or securities exchangeable or exercisable for or convertible into Common Shares (other than rights, options or warrants pursuant to which holders of Common Shares are entitled, during a period expiring not more than 45 days after the record date for such issue, to subscribe for or purchase Common Shares or securities exchangeable or exercisable for or convertible into Common Shares at a price per share (or in the case of securities exchangeable or exercisable for or convertible into Common Shares at an exchange, exercise or conversion price per share) on the record date for the issue of such securities to the holder of at least 95 % of the Current Market Price of the Common Shares on such record date) ; (iii) evidences  of  indebtedness  of the  Company; or (iv) any property  or  other assets  of the Company; and if such issue or distribution does not constitute a Common Share Reorganization or a Rights Offering (any of such non - excluded events being herein called a " Special Distribution "), the Conversion Price shall be adjusted effective immediately after the record date for the Special Distribution to the amount determined by multiplying the Conversion Price by a fraction : (1) the  numerator  of  which  shall be the  difference between (A) the product of the number of Common Shares outstanding on such record date and the Current Market Price of the Common Shares on such record date, and

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 43 - (B) the fair value, as determined by the directors of the Company and subject to approval by the TSXV, to the holders of Common Shares of the shares, rights, options, warrants, evidences of indebtedness or property or assets to be issued or distributed in the Special Distribution, and ( 2 ) the denominator of which shall be the product obtained by multiplying the number of Common Shares outstanding on such record date by the Current Market Price of the Common Shares on such record date . Any Common Shares owned by or held for the account of the Company shall be deemed not to be outstanding for the purpose of such calculation . To the extent that any adjustment in the Conversion Price occurs pursuant to this Section 6 . 5 (c) as a result of the fixing by the Company of a record date for the issue or distribution of rights, options or warrants to acquire Common Shares or securities exchangeable or exercisable for or convertible into Common Shares referred to in this Section 6 . 5 (c), the Conversion Price shall be readjusted immediately after the expiry of any relevant exchange, exercise or conversion right to the amount which would then be in effect based upon the number of Common Shares issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right . (d) If  at  any  time during the Adjustment  Period there shall occur: (i) a reclassification or redesignation of the Common Shares, a change of the Common Shares into other shares or securities or any other capital reorganization involving the Common Shares other than a Common Share Reorganization ; (ii) a consolidation, amalgamation, arrangement or merger of the Company with or into another body corporate which results in a reclassification or redesignation of the Common Shares or a change of the Common Shares into other shares or securities ; or (iii) the  transfer  of the  undertaking  or  assets  of the Company  as an  entirety  or   substantially  as an entirety  to another  corporation  or  entity; (any of such events being called a " Capital Reorganization "), after the effective date of the Capital Reorganization the Debentureholder shall be entitled to receive, and shall accept, for the same aggregate consideration, upon the conversion of the Debentures, in lieu of the number of Units to which the Debentureholder was theretofore entitled upon the conversion of the Debentures, the kind and aggregate number of shares and other securities or property resulting from the Capital Reorganization which the Debentureholder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Debentureholder had been the registered holder of the number of Units which the

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 44 - Debentureholders was theretofore entitled to purchase or receive upon the conversion of the Debentures . If necessary, as a result of any such Capital Reorganization, appropriate adjustments shall be made in the application of the provisions of this Indenture with respect to the rights and interests thereafter of the Debentureholder to the end that the provisions shall thereafter correspondingly be made applicable as nearly as may reasonably be possible in relation to any shares or other securities or property thereafter deliverable upon the conversion of the Debentures . (e) If at any time during the Adjustment Period the Company shall fix a record date for the payment of a cash dividend or distribution to the holders of all or substantially all of the outstanding Common Shares (other than dividends paid in the ordinary course, once initiated under a dividend policy approved by the board of directors), the Conversion Price shall be adjusted immediately after such record date so that it shall be equal to the price determined by multiplying the Conversion Price in effect on such record date by a fraction : (i) the  numerator  of  which  shall be the  difference between (1) the  Current  Market  Price  on  such record date, and (2) the  amount  in  cash  per Common  Share distributed  to  holders  of   Common  Shares, and (ii) the  denominator  of which  shall  be the  Current  Market  Price  on such  record   date. Such adjustment shall be made successively whenever such a record date is fixed . To the extent that any such cash dividend or distribution is not paid, the Conversion Price shall be re - adjusted to the Conversion Price which would then be in effect if such record date had not been fixed . (f) Any adjustment to the exercise price of the Warrants (but for certainty, not the number of Common Shares underlying the Warrants) shall be determined in accordance with the terms of the Warrant Indenture and for greater certainty, such adjustments shall occur whether or not the applicable Debentures have been converted at the time of the event triggering such adjustment . 6. Rules Regarding Calculation  of Adjustment For  the  purposes  of Article 6: (a) Subject  to this  Section  6.6 ,  any  adjustment  made  pursuant  to  Section  6.5  hereof   shall  be made successively  whenever an  event  referred  to  therein  shall occur. (b) If  more than one subsection of  Section  6.5 is applicable  to a single event, the   subsection shall be applied that produces the adjustment most favourable to

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 45 - Debentureholders and  no  single event shall  cause  an adjustment under  more than   one  subsection  of Section  6.5 so as  to  result  in duplication; (c) No adjustment in the Conversion Price shall be required unless such adjustment would result in a change of at least one per cent in the Conversion Price and no adjustment shall be made in the number of Units obtainable upon the conversion of the Debentures unless it would result in a change of at least one one - hundredth of a Unit ; provided, however, that any adjustments which except for the provision of this Section 6 . 6 (c) would otherwise have been required to be made shall be carried forward and taken into account in any subsequent adjustment . Notwithstanding any other provision of Section 6 . 6 hereof, no adjustment pursuant to Section 6 . 5 shall be made which would result in an increase in the Conversion Price or a decrease in the number of Units issuable upon the conversion of the Debentures (except in respect of the Common Share Reorganization described in Section 6 . 5 (a) hereof or a Capital Reorganization described in Section 6 . 5 (d)(ii) hereof) . (d) Subject to the Company receiving approval from the TSXV, no adjustment in the Conversion Price or in the number or kind of securities obtainable upon the conversion of the Debentures shall be made in respect of any event described in Sec tion 6 . 5 hereof if the Debentureholder is entitled to participate in such event on the same terms mutatis mutandis as if the Debentureholder had converted the Debentures prior to or on the record date or effective date, as the case may be, of such event . (e) No adjustment in the Conversion Price or in the number of Units obtainable upon the conversion of the Debentures shall be made pursuant to Section 6 . 5 hereof in respect of (i) the issue from time to time of Warrants and/or Common Shares (including Common Shares underlying the Warrants) pursuant to this Indenture or (ii) the issue from time to time of Common Shares pursuant to any stock option, stock purchase or stock bonus plan in effect from time to time for directors, officers or employees of the Company and/or any subsidiary of the Company, and any such event shall not be deemed to be a Common Share Reorganization, a Rights Offering nor any other event described in Section 6 . 5 hereof . (f) If at any time during the Adjustment Period the Company shall take any action affecting the Common Shares, other than an action or event described in Section 6 . 5 hereof, which in the opinion of the directors of the Company would have a material adverse effect upon the rights of Debentureholders, either the Conversion Price or the number of Units obtainable upon conversion of the Debentures shall be adjusted in such manner and at such time by action by the directors of the Company, in their sole discretion, as may be equitable in the circumstances . Failure of the taking of action by the directors of the Company so as to provide for an adjustment prior to the effective date of any action by the Company affecting the Common Shares shall be deemed to be conclusive evidence that the directors of the Company have determined that it is equitable to make no adjustment in the circumstances .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 46 - (g) If the Company shall set a record date to determine holders of Common Shares for the purpose of entitling such holders to receive any dividend or distribution or any subscription or purchase rights and shall, thereafter and before the distribution to such holders of any such dividend, distribution or subscription or purchase rights, legally abandon its plan to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Conversion Price shall be required by reason of the setting of such record date . (h) In any case in which this Indenture shall require that an adjustment shall become effective immediately after a record date for an event referred to in Section 6 . 5 hereof, the Company may defer, until the occurrence of such event : (i) issuing to the Debentureholder, to the extent that the Debentures are converted after such record date and before the occurrence of such event, the additional Units or other securities issuable upon such conversion by reason of the adjustment required by such event ; and (ii) delivering to the Debentureholder any distribution declared with respect to such additional Units or other securities after such record date and before such event ; provided, however, that the Company shall deliver to the Debentureholder an appropriate instrument evidencing the right of the Debentureholder upon the occurrence of the event requiring the adjustment, to an adjustment in the Conversion Price . (i) In the absence of a resolution of the directors of the Company fixing a record date for a Rights Offering, the Company shall be deemed to have fixed as the record date therefor the date of the issue of the rights, options or warrants issued pursuant to the Rights Offering . (j) If a dispute shall at any time arise with respect to adjustments of the Conversion Price or the number of Units obtainable upon the conversion of the Debentures, such disputes shall be conclusively determined by the Auditors of the Company or if they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by the directors of the Company and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to Section 6 . 5 hereof and shall be binding upon the Company, Trustee and the Debentureholder . (k) As a condition precedent to the taking of any action which would require an adjustment pursuant to Section 6 . 5 hereof, including the Conversion Price and the number or class of Units or other securities which are to be received upon the conversion thereof, the Company shall take any action which may, in the opinion of Counsel to the Company, be necessary in order that the Company may validly and legally issue as fully paid and non - assessable shares all of the Common Shares,

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 47 - Warrants  or other securities  which  the  Debentureholder is entitled  to  receive  in   accordance  with the provisions of this Indenture. (l) If the Company shall take any action affecting the Common Shares and the holders thereof, and, in the opinion of the directors of the Company acting reasonably, the adjustment provisions of Section 6 . 5 are not strictly applicable or, if strictly applicable, would not fairly protect the rights of the holder or the Company in accordance with the intent and purpose of Section 6 . 5 , the provisions of Section 6 . 5 shall be adjusted in such manner, if any, and at such time, by action by the directors of the Company which the directors of the Company, in their discretion, may reasonably determine to be equitable in the circumstances but subject in all cases to any necessary regulatory approval, including approval of the TSXV (or such other stock exchange or quotation system on which the Common Shares are then listed and posted (or quoted) for trading, as applicable) . Failure of the taking of action by the directors of the Company so as to provide for an adjustment on or prior to the effective date of any action by the Company affecting the Common Shares will be conclusive evidence that the board of directors of the Company has determined that it is equitable to make no adjustment in the circumstances . 7. Notice  of Adjustment (a) At least 14 days prior to the effective date or record date, as the case may be, of any event which requires or might require adjustment pursuant to Section 6 . 5 , the Company shall : (i) file with the Trustee an Officer's Certificate specifying the particulars of such event (including the record date or the effective date for such event) and, if determinable, the required adjustment and the computation of such adjustment and setting forth in reasonable detail the method of calculation and the facts upon which such calculation is based, which certificate shall be supported by a certificate of the Auditors of the Company verifying such calculation ; and (ii) give notice to the Debentureholders of the particulars of such event (including the record date or the effective date for such event) and, if determinable, the required adjustment . (b) In case any adjustment for which a notice in Section 6 . 7 (a) has been given is not then determinable, the Company shall promptly after such adjustment is determinable : (i) file with the  Trustee  a computation of  such adjustment; and (ii) give  notice to the  Debentureholders  of the adjustment. (c) The Trustee may and shall be protected in so doing, absent manifest error, act and rely upon certificates of the Company, the Company's Auditor and other documents filed by the Company pursuant to this Section 6 . 7 for all purposes of the adjustment .

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 48 - 8. No Action after Notice The Company covenants with the Trustee that it will not close its books nor take any other corporate action which might deprive a Debentureholder of the opportunity of exercising the rights of acquisition pursuant thereto during the period of 14 days after the giving of the notice set forth in paragraph (ii) of Sections 6 . 7 (a) and 6 . 7 (b) . 9. Protection  of Trustee The Trustee shall not : (a) at any time be under any duty or responsibility to any registered holder of Debentures to determine whether any facts exist that may require any adjustment contemplated by this Article 6 , nor to verify the nature and extent of any such adjustment when made or the method employed in making the same ; (b) be accountable with respect to the validity or value or the kind or amount of any Units or of any other securities or property that may at any time be issued or delivered upon the conversion of the Debentures ; (c) be responsible for any failure of the Company to make any cash payment, to issue, transfer or deliver Units or certificates upon the surrender of any Debentures for the purpose of the conversion of such rights or to comply with any of the covenants contained in Article 7 ; or (d) incur any liability or responsibility whatsoever or be in any way responsible for the consequence of any breach on the part of the Company of any of the representations, warranties or covenants of the Company or any acts or deeds of the agents or servants of the Company . ARTICLE  7   COVENANTS  OF THE COMPANY The Company hereby covenants and agrees with the Trustee for the benefit of the Trustee and the Debentureholders, that so long as any Debentures remain outstanding : 1. To  Pay Principal  and Interest The Company will duly and punctually pay or cause to be paid to every Debentureholder the principal of and interest accrued on the Debentures of which it is the holder on the dates, at the places and in the manner mentioned herein and in the Debentures . 2. To  Pay Trustee's Remuneration The Company will pay the Trustee reasonable remuneration for its services as Trustee hereunder and will repay to the Trustee on demand all monies which shall have been paid by the Trustee in connection with the execution of the trusts hereby created and such monies including the Trustee's remuneration, shall be payable out of any funds coming into the possession of the Trustee in

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 49 - priority to payment of any principal of the Debentures or interest thereon . Such remuneration shall continue to be payable until the trusts hereof be finally wound up and whether or not the trusts of this Indenture shall be in the course of administration by or under the direction of a court of competent jurisdiction . 3. To  Give Notice  of Default The Company shall notify the Trustee immediately upon obtaining knowledge of any default or Event of Default hereunder . CDS shall also receive notice of the default or Event of Default in accordance with Section 8 . 2 and Section 11 . 2 , within 30 days of the Trustee receiving written notification of the Event of Default hereunder . 4. Preservation  of  Existence, etc. Subject to the express provisions hereof, the Company will carry on and conduct its activities, and cause its Subsidiaries to carry on and conduct their businesses, in a business - like manner and in accordance with good business practices ; and, subject to the express provisions hereof, it will do or cause to be done all things necessary to preserve and keep in full force and effect its existence and rights . 5. Keeping  of Books The Company will keep or cause to be kept proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and business of the Company in accordance with generally accepted accounting principles . 6. Annual  Certificate  of  Compliance The Company shall deliver to the Trustee, within 120 days after the end of each calendar year, (and at any reasonable time upon demand by the Trustee) an Officer's Certificate as to the knowledge of such officers of the Company who execute the Officer's Certificate of the Company's compliance with all conditions and covenants in this Indenture certifying that after reasonable investigation and inquiry, the Company has complied with all covenants, conditions or other requirements contained in this Indenture, the non - compliance with which could, with the giving of notice, lapse of time or otherwise, constitute an Event of Default hereunder, or if such is not the case, setting forth with reasonable particulars the circumstances of any failure to comply and steps taken or proposed to be taken to eliminate such circumstances and remedy such Event of Default, as the case may be . 7. Performance  of  Covenants If the Company shall fail to perform any of its covenants contained in this Indenture, the Trustee may notify the Debentureholders of such failure on the part of the Company or may itself perform any of the covenants capable of being performed by it, but shall be under no obligation to do so . All sums so expended or advanced by the Trustee shall be repayable as provided in Section 7 . 2 . No such performance, expenditure or advance by the Trustee shall be deemed to relieve the Company of any default hereunder .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 50 - 7.8 Maintain Listing The Company will use reasonable commercial efforts to maintain the listing of the Common Shares on the TSX - V, and to maintain the Company's status as a "reporting issuer" not in default of the requirements of the Applicable Securities Legislation, provided that nothing in this Section 8. shall operate to prevent the Company from completing a Change of Control transaction that results in its securities ceasing to be listed on the TSX - V . 9. Insurance Each of the Company and its Subsidiaries, if any, shall maintain insurance with respect to its properties and business against such casualties and contingencies, of such types, on such terms and in such amounts as is customary in the case of entities engaged in the same or a similar business and similarly situated . 10. No Dividends  or Distributions The Company shall not declare or pay any dividend to the holders of its issued and outstanding Common Shares or other shares in the capital of the Company after the occurrence of an Event of Default unless and until such default shall have been cured or waived or shall have ceased to exist . 11. Withholding Matters All payments made by or on behalf of the Company under or with respect to the Debentures (including, without limitation, any penalties, interest and other liabilities related thereto) will be made free and clear of and without withholding, or deduction for, or on account of, any present or future tax, duty, levy, impost, assessment or other governmental charge (including, without limitation, penalties, interest and other liabilities related hereto) imposed or levied by or on behalf of the Government of Canada or the United States or elsewhere, or of any province or territory thereof or by any authority or agency therein or thereof having power to tax (" Withholding Taxes "), unless the Company is required by law or the interpretation or administration thereof, to withhold or deduct any amounts for, or on account of Withholding Taxes . If the Company is so required to withhold or deduct any amount for, or on account of, Withholding Taxes from any payment made under or with respect to the Debentures, the Company shall deduct and withhold such Withholding Taxes from any payment to be made or with respect to the Debentures and, provided that the Company forthwith remits such amount to the relevant governmental authority or agency, the amount of any such deduction or withholding will be considered an amount paid in satisfaction of the Company's obligations under the Debentures . There is no obligation on the Company to gross - up or pay additional amounts to a holder of Debentures in respect of such deductions or withholdings . For greater certainty, if any amount is required to be deducted or withheld in respect of Withholding Taxes upon a conversion of a Debenture, the Company shall be entitled to liquidate such number of Common Shares (or other securities) issuable as a result of such conversion as shall be necessary in order to satisfy such requirement . The Company shall provide the Trustee with copies of receipts or other communications relating to the remittance of such withheld amount or the filing of any forms received from such government authority or agency promptly after receipt thereof .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 51 - 12. SEC Reporting Status (a) The Company confirms that as at the date of execution of this Indenture it does not have a class of securities registered pursuant to Section 12 of the U . S . Exchange Act or have a reporting obligation pursuant to Section 15 (d) of the U . S . Exchange Act . (b) The Company covenants that, in the event that (i) any class of its securities shall become registered pursuant to Section 12 of the U . S . Exchange Act or such Company shall incur a reporting obligation pursuant to Section 15 (d) of the U . S . Exchange Act, or (ii) any such registration or reporting obligation shall be terminated by such Company in accordance with the U . S . Exchange Act, such Company shall promptly deliver to the Trustee an Officers' Certificate notifying the Trustee of such registration or termination and such other information as the Trustee may, acting and relying on Counsel, require at the time . The Company acknowledges that the Trustee is relying upon the foregoing representation and covenants in order to meet certain United States Securities and Exchange Commission (the " SEC ") obligations with respect to those clients who are filing with the SEC . ARTICLE 8   DEFAULT 1. Events  of  Default (a) Each of the following events constitutes, and is herein referred to as, an " Event of Default " : (i) failure  for 15  days  to  pay  interest  on the  Debentures when due; (ii) failure to pay principal and other amounts owing, if any, when due on the Debentures whether on the Maturity Date, upon redemption or a Change of Control, by declaration or otherwise (whether such payment is due in cash, Common Shares or other securities or property or a combination thereof) ; (iii) default in the delivery, when due, of any Unit Shares and Warrants or other consideration, payable on conversion with respect to the Debentures, which default continues for 15 days ; (iv) default in the observance or performance of any covenant or condition of the Indenture by the Company and the failure to cure (or obtain a waiver for) such default for a period of 30 days after notice in writing has been given by the Trustee or from holders of not less than 25 % in aggregate principal amount of the Debentures to the Company specifying such default and requiring the Company to rectify such default or obtain a waiver for same ;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 52 - (v) if a decree or order of a Court having jurisdiction is entered adjudging the Company or any Subsidiary a bankrupt or insolvent under the Bankruptcy and Insolvency Act (Canada) or any other bankruptcy, insolvency or analogous laws, or issuing sequestration or process of execution against, or against any substantial part of, the property of the Company or any Subsidiary, or appointing a receiver of, or of any substantial part of, the property of the Company or any Subsidiary or ordering the winding - up or liquidation of its affairs, and any such decree or order continues unstayed and in effect for a period of 60 days ; (vi) if the Company or any Subsidiary institutes proceedings to be adjudicated a bankrupt or insolvent, or consents to the institution of bankruptcy or insolvency proceedings against it under the Bankruptcy and Insolvency Act (Canada) or any other bankruptcy, insolvency or analogous laws, or consents to the filing of any such petition or to the appointment of a receiver of, or of any substantial part of, the property of the Company or any Subsidiary or makes a general assignment for the benefit of creditors, or admits in writing its inability to pay its debts generally as they become due ; (vii) if a resolution  is passed  for the winding - up  or  liquidation of the Company   or any  Subsidiary; or (viii) if, after the date of this Indenture, any proceedings with respect to the Company or any Subsidiary are taken with respect to a compromise or arrangement, with respect to creditors of the Company or any Subsidiary generally, under the applicable legislation of any jurisdiction ; then : (i) in each and every such event listed above, the Trustee may, in its discretion, but subject to the provisions of this Section, and shall, upon receipt of a request in writing signed by the holders of not less than 25 % in principal amount of the Debentures then outstanding (or if the Event of Default shall exist only in respect of one or more series of the Debentures then outstanding, then upon receipt of a request in writing signed by the holders of not less than 25 % in principal amount of the Debentures of such series then outstanding), subject to the provisions of Section 8 . 3 , by notice in writing to the Company declare the principal and the interest, on all Debentures then outstanding and all other monies outstanding hereunder to be due and payable and the same shall thereupon forthwith become immediately due and payable (or, if the Event of Default shall exist only in respect of one or more series of the Debentures then outstanding, then the Trustee may declare due and payable the principal and/or the interest, only with respect to such series of Debentures in respect of which there is an Event of Default) to the Trustee, and (ii) on the occurrence of an Event of Default under clauses 8 . 1 (a)(v), 8 . 1 (a)(vi), or 8 . 1 (a)(vii), the principal and the interest, on all Debentures then outstanding hereunder and all other monies outstanding hereunder, shall automatically without any declaration or other act on the part of the Trustee or any Debentureholder become immediately due and payable to the Trustee and, in either case, upon such amounts becoming due and payable in either (i) or (ii) above, the Company shall

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 53 - forthwith pay to the Trustee for the benefit of the Debentureholders such principal and accrued and unpaid interest on such Debenture and all other monies outstanding hereunder, together with subsequent interest at the rate borne by the Debentures on such principal and interest and such other monies from the date of such declaration or event until payment is received by the Trustee, such subsequent interest to be payable at the times and places and in the manner mentioned in and according to the tenor of the Debentures . Such payment when made shall be deemed to have been made in discharge of the Company's obligations hereunder and any monies so received by the Trustee shall be applied in the manner provided in Section 8 . 6 . (b) For greater certainty, for the purposes of this Section 8 . 1 , a series of Debentures shall be in default in respect of an Event of Default if such Event of Default relates to a default in the payment of principal and/or the interest (if any) on the Debentures of such series in which case references to Debentures in this Section 8 . 1 refer to Debentures of that particular series . (c) For purposes of this Article 8 , where the Event of Default refers to an Event of Default with respect to a particular series of Debentures as described in this Section 8 . 1 , then this Article 8 shall apply mutatis mutandis to the Debentures of such series and references in this Article 8 to the Debentures shall mean Debentures of the particular series and references to the Debentureholders shall refer to the Debentureholders of the particular series, as applicable . 2. Notice  of  Events  of  Default If an Event of Default shall occur and be continuing the Trustee shall, within 30 days after it receives written notice of the occurrence of such Event of Default, give notice of such Event of Default to the Debentureholders in the manner provided in Section 11 . 2 , provided that notwithstanding the foregoing, unless the Trustee shall have been requested to do so by the holders of at least 25 % of the principal amount of the Debentures then outstanding, the Trustee shall not be required to give such notice if the Trustee in good faith shall have determined that the withholding of such notice is in the best interests of the Debentureholders and shall have so advised the Company in writing . When notice of the occurrence of an Event of Default has been given and the Event of Default is thereafter cured, notice that the Event of Default is no longer continuing shall be given by the Trustee to the Debentureholders within 15 days after the Trustee receives written notice that the Event of Default has been cured . 3. Waiver of Default (a) Upon the happening of  any  Event  of  Default hereunder: (i) the holders of the Debentures shall have the power (in addition to the powers exercisable by Extraordinary Resolution as hereinafter provided) by requisition in writing by the holders of more than 50 % of the principal amount of Debentures then outstanding, to instruct the Trustee to waive any Event of Default and to cancel any declaration made by the Trustee pursuant to Section 8 . 1 and the Trustee shall thereupon waive the Event of Default

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 54 - and cancel such declaration, or either, upon such terms and conditions as shall be prescribed in such requisition ; provided that notwithstanding the foregoing if the Event of Default has occurred by reason of the non - observance or non - performance by the Company of any covenant applicable only to one or more series of Debentures, then the holders of more than 50 % of the principal amount of the outstanding Debentures of that series shall be entitled to exercise the foregoing power and the Trustee shall so act and it shall not be necessary to obtain a waiver from the holders of any other series of Debentures ; and (ii) the Trustee, so long as it has not become bound to declare the principal and interest on the Debentures then outstanding to be due and payable, or to obtain or enforce payment of the same, shall have power to waive any Event of Default if, in the Trustee's opinion, the same shall have been cured or adequate satisfaction made therefor, and in such event to cancel any such declaration theretofore made by the Trustee in the exercise of its discretion, upon such terms and conditions as the Trustee may deem advisable . (b) No such act or omission either of the Trustee or of the Debentureholders shall extend to or be taken in any manner whatsoever to affect any subsequent Event of Default or the rights resulting therefrom . 4. Enforcement by the Trustee (a) Subject to the provisions of Section 8 . 3 and to the provisions of any Extraordinary Resolution that may be passed by the Debentureholders, if the Company shall fail to pay to the Trustee, forthwith after the same shall have been declared to be due and payable under Section 8 . 1 , the principal of and interest on all Debentures then outstanding, together with any other amounts due hereunder, the Trustee may in its discretion and shall upon receipt of a request in writing signed by the holders of not less than 25 % in principal amount of the Debentures then outstanding and upon being funded and indemnified to its reasonable satisfaction against all costs, expenses and liabilities to be incurred, proceed in its name as trustee hereunder to obtain or enforce payment of such principal of and interest on all the Debentures then outstanding together with any other amounts due hereunder by such proceedings authorized by this Indenture or by law or equity as the Trustee in such request shall have been directed to take, or if such request contains no such direction, or if the Trustee shall act without such request, then by such proceedings authorized by this Indenture or by suit at law or in equity as the Trustee shall deem expedient . (b) The Trustee shall be entitled and empowered, either in its own name or as Trustee of an express trust, or as attorney - in - fact for the holders of the Debentures, or in any one or more of such capacities, to file such proof of debt, amendment of proof of debt, claim, petition or other document as may be necessary or advisable in order to have the claims of the Trustee and of the holders of the Debentures allowed in any insolvency, bankruptcy, liquidation or other judicial proceedings relative to the

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 55 - Company or its creditors or relative to or affecting its property . The Trustee is hereby irrevocably appointed (and the successive respective holders of the Debentures by taking and holding the same shall be conclusively deemed to have so appointed the Trustee) the true and lawful attorney - in - fact of the respective holders of the Debentures with authority to make and file in the respective names of the holders of the Debentures or on behalf of the holders of the Debentures as a class, subject to deduction from any such claims of the amounts of any claims filed by any of the holders of the Debentures themselves, any proof of debt, amendment of proof of debt, claim, petition or other document in any such proceedings and to receive payment of any sums becoming distributable on account thereof, and to execute any such other papers and documents and to do and perform any and all such acts and things for and on behalf of such holders of the Debentures, as may be necessary or advisable in the opinion of the Trustee, which may include acting and relying on Counsel, in order to have the respective claims of the Trustee and of the holders of the Debentures against the Company or its property allowed in any such proceeding, and to receive payment of or on account of such claims ; provided, however, that subject to Section 8 . 3 , nothing contained in this Indenture shall be deemed to give to the Trustee, unless so authorized by Extraordinary Resolution, any right to accept or consent to any plan of reorganization or otherwise by action of any character in such proceeding to waive or change in any way any right of any Debentureholder . (c) 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 . (d) All rights of action hereunder may be enforced by the Trustee without the possession of any of the Debentures or the production thereof on the trial or other proceedings relating thereto . Any such suit or proceeding instituted by the Trustee shall be brought in the name of the Trustee as trustee of an express trust, and any recovery of judgment shall be for the rateable benefit of the holders of the Debentures subject to the provisions of this Indenture . In any proceeding brought by the Trustee (and also any proceeding in which a declaratory judgment of a court may be sought as to the interpretation or construction of any provision of this Indenture, to which the Trustee shall be a party) the Trustee shall be held to represent all the holders of the Debentures, and it shall not be necessary to make any holders of the Debentures parties to any such proceeding . 8.5 No  Suits  by Debentureholders No holder of any Debenture shall have any right to institute any action, suit or proceeding at law or in equity for the purpose of enforcing payment of the principal of or interest on the Debentures or for the execution of any trust or power hereunder or for the appointment of a liquidator or receiver or for a receiving order under the Bankruptcy and Insolvency Act (Canada) or to have the Company wound up or to file or prove a claim in any liquidation or bankruptcy proceeding or for any other remedy hereunder, unless : (a) such holder shall previously have given to the Trustee

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 56 - written notice of the happening of an Event of Default hereunder ; and (b) the Debentureholders by Extraordinary Resolution or by written instrument signed by the holders of at least 25 % in principal amount of the Debentures then outstanding shall have made a request to the Trustee and the Trustee shall have been afforded reasonable opportunity either itself to proceed to exercise the powers hereinbefore granted or to institute an action, suit or proceeding in its name for such purpose ; and (c) the Debentureholders or any of them shall have furnished to the Trustee, when so requested by the Trustee, sufficient funds and security and indemnity satisfactory to it against the costs, expenses and liabilities to be incurred therein or thereby ; and (d) the Trustee shall have failed to act within a reasonable time after such notification, request and offer of indemnity and such notification, request and offer of indemnity are hereby declared in every such case, at the option of the Trustee, to be conditions precedent to any such proceeding or for any other remedy hereunder by or on behalf of the holder of any Debentures . 6. Application of Monies by Trustee (a) Except as herein otherwise expressly provided, any monies received by the Trustee from the Company pursuant to the foregoing provisions of this Article 8 , or as a result of legal or other proceedings or from any trustee in bankruptcy or liquidator of the Company, shall be applied, together with any other monies in the hands of the Trustee available for such purpose, as follows : (i) first, in payment or in reimbursement to the Trustee of its compensation, costs, charges, expenses, borrowings, advances or other monies furnished or provided by or at the instance of the Trustee in or about the execution of its trusts under, or otherwise in relation to, this Indenture, with interest thereon as herein provided ; (ii) second, but subject as hereinafter in this Section 8 . 6 provided, in payment, rateably and proportionately to the holders of Debentures, of the principal of and accrued and unpaid interest on and interest on amounts in default on the Debentures which shall then be outstanding in the priority of principal first and then accrued but unpaid interest and interest on amounts in default unless otherwise directed by Extraordinary Resolution and in that case in such order or priority as between principal and interest as may be directed by such resolution ; and (iii) third, in  payment  of the surplus, if  any,  of  such monies  to the  Company  or   its assigns; provided, however, that no payment shall be made pursuant to clause (b) above in respect of the principal and/or the interest on any Debenture held, directly or indirectly, by or for the benefit of the Company or any Subsidiary (other than any Debenture pledged for value and in good faith to a Person other than the Company or any Subsidiary but only to the extent of such Person's interest therein) except subject to the prior payment in full of the principal and interest on all Debentures which are not so held .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 57 - (b) The Trustee shall not be bound to apply or make any partial or interim payment of any monies coming into its hands if the amount so received by it, after reserving thereout such amount as the Trustee may think necessary to provide for the payments mentioned in subsection 8 . 1 (a), is insufficient to make a distribution of at least 2 % of the aggregate principal amount of the outstanding Debentures, but it may retain the money so received by it and invest or deposit the same until the money or the investments representing the same, with the income derived therefrom, together with any other monies for the time being under its control shall be sufficient for the said purpose or until it shall consider it advisable to apply the same in the manner hereinbefore set forth . The foregoing shall, however, not apply to a final payment in distribution hereunder . 7. Notice  of  Payment by Trustee Not less than 15 days' notice shall be given in the manner provided in Section 11 . 2 by the Trustee to the Debentureholders of any payment to be made under this Article 8 . Such notice shall state the time when and place where such payment is to be made and also the liability under this Indenture to which it is to be applied . After the day so fixed, unless payment shall have been duly demanded and have been refused, the Debentureholders will be entitled to interest only on the balance (if any) of the principal monies and interest due (if any) to them, respectively, on the Debentures, after deduction of the respective amounts payable in respect thereof on the day so fixed . 8. Trustee May Demand Production  of Debentures The Trustee shall have the right to demand production of the Debentures in respect of which any payment of principal or interest required by this Article 8 is made and may cause to be endorsed on the same a memorandum of the amount so paid and the date of payment, but the Trustee may, in its discretion, dispense with such production and endorsement, upon such indemnity being given to it as the Trustee shall deem sufficient . 9. Remedies Cumulative No remedy herein conferred upon or reserved to the Trustee, or upon or to the holders of Debentures is intended to be exclusive of any other remedy, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now existing or hereafter to exist by law or by statute . 10. Judgment Against the Company The Company covenants and agrees with the Trustee that, in case of any judicial or other proceedings to enforce the rights of the Debentureholders, judgment may be rendered against it in favour of the Debentureholders or in favour of the Trustee, as trustee for the Debentureholders, for any amount which may remain due in respect of the Debentures and the interest thereon and any other monies owing hereunder .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 58 - ARTICLE  9   SATISFACTION AND DISCHARGE 1. Cancellation and Destruction All Debentures shall forthwith after payment thereof be delivered to the Trustee and cancelled by it . All Debentures cancelled or required to be cancelled under this or any other provision of this Indenture shall be destroyed by the Trustee and, if required by the Company, the Trustee shall furnish to it a destruction certificate setting out the designating numbers of the Debentures so destroyed . 2. Non - Presentation  of Debentures In case the holder of any Debenture shall fail to present the same for payment on the date on which the principal of or interest thereon or represented thereby becomes payable either at maturity or otherwise or shall not accept payment on account thereof and give such receipt therefor, if any, as the Trustee may require : (a) the Company shall be entitled to pay or deliver to the Trustee and direct it to set aside ; or (b) in respect of monies in the hands of the Trustee which may or should be applied to the payment of the Debentures, the Company shall be entitled to direct the Trustee to set aside ; or (c) if the redemption was pursuant to notice given by the Trustee, the Trustee may itself set aside ; the monies in trust to be paid to the holder of such Debenture upon due presentation or surrender thereof in accordance with the provisions of this Indenture ; and thereupon the principal of or interest thereon payable on or represented by each Debenture in respect whereof such monies have been set aside shall be deemed to have been paid and the holder thereof shall thereafter have no right in respect thereof except that of receiving delivery and payment of the monies so set aside by the Trustee upon due presentation and surrender thereof, subject always to the provisions of Sec tion 9 . 3 . 3. Repayment  of  Unclaimed Monies Subject to applicable law, any monies set aside under Section 9 . 2 and not claimed by and paid to holders of Debentures as provided in Section 9 . 2 within four years after the date of such setting aside shall upon the written demand of the Company be repaid and delivered to the Company by the Trustee and thereupon the Trustee shall be released from all further liability with respect to such monies and thereafter the holders of the Debentures in respect of which such monies were so repaid to the Company shall have no rights in respect thereof except to obtain payment and delivery of the monies from the Company subject to any limitation provided by the laws of the Province of Ontario .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 59 - 4. Discharge The Trustee shall at the written request and expense of the Company release and discharge this Indenture and execute and deliver such instruments as it shall be advised by Counsel are requisite for that purpose and to release the Company 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 and interest (including interest on amounts in default, if any), on all the Debentures and all other monies payable hereunder have been paid or satisfied or that all the Debentures having matured or having been duly called for redemption in the occurrence of a Change of Control, payment of the principal of and interest (including interest on amounts in default, if any) on such Debentures and of all other monies payable hereunder has been duly and effectually provided for in accordance with the provisions hereof . 5. Satisfaction (a) The Company shall be deemed to have fully paid, satisfied and discharged all of the outstanding Debentures and the Trustee, at the expense of the Company, shall execute and deliver proper instruments acknowledging the full payment, satisfaction and discharge of such Debentures, when, with respect to all of the outstanding Debentures : (i) the Company has deposited or caused to be deposited with the Trustee as trust funds or property in trust for the purpose of making payment on such Debentures, an amount in money sufficient to pay, satisfy and discharge the entire amount of the principal and interest to maturity, or any repayment date or any Change of Control Purchase Date or otherwise as the case may be, and payment of present taxes owing and any taxes arising with respect to all deposited funds or other provision for payment in respect of such Debentures ; (ii) the Company has deposited or caused to be deposited with the Trustee as trust property in trust for the purpose of making payment on such Debentures : (A) if the Debentures are issued in Canadian dollars, such amount in Canadian dollars of direct obligations of, or obligations the principal and interest of which are guaranteed by, the Government of Canada ; or (B) if the Debentures are issued in a currency or currency unit other than Canadian dollars, cash in the currency or currency unit in which the Debentures are payable and/or such amount in such currency or currency unit of direct obligations of, or obligations the principal and interest of which are guaranteed by, the Government of Canada or the government that issued the currency or currency unit in which the Debentures are payable ;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 60 - as will be sufficient to pay and discharge the entire amount of the principal of and accrued and unpaid interest to the Maturity Date or any repayment date, as the case may be, of all such Debentures ; or (iii) all Debentures Authenticated and delivered (other than (A) Debentures which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2 . 6 and (B) Debentures for whose payment has been deposited in trust and thereafter repaid to the Company as provided in Section 9 . 3 ) have been delivered to the Trustee for cancellation ; so long as in any such event : (A) the Company has paid, caused to be paid or made provisions to the satisfaction of the Trustee for the payment of all other sums payable or which may be payable with respect to all of such Debentures (together with all applicable fees and expenses of the Trustee in connection with the payment of such Debentures and its duties under this Indenture) ; (B) the Company has delivered to the Trustee an Officer's Certificate stating that all conditions precedent herein provided relating to the payment, satisfaction and discharge of all such Debentures have been complied with ; and (C) the Trustee shall have received an opinion or opinions of Counsel that Debentureholders will not be subject to any additional taxes as a result of the exercise by the Company of the defeasance and that such holders will be subject to taxes, if any, including those in respect of income (including interest and taxable capital gains), on the same amount, in the same manner and at the same time or times as would have been the case if the defeasance option had not been exercised in respect of such Debentures . Any deposits with the Trustee referred to in this Section 9 . 5 shall be irrevocable, subject to Section 9 . 6 , and shall be made under the terms of an escrow and/or trust agreement in form and substance satisfactory to the Trustee and which provides for the due and punctual payment of the principal and/or the interest (if any) on the Debentures being satisfied . Upon the satisfaction of the conditions set forth in this Section 9 . 5 with respect to all the outstanding Debentures, or all the outstanding Debentures of any series, as applicable, the terms and conditions of the Debentures, including the terms and conditions with respect thereto set forth in this Indenture (other than those contained in Article 2 and Article 4 and the provisions of Article 1 pertaining to Article 2 and Article 4 ) shall no longer be binding upon or applicable to the Company .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 61 - Any funds or obligations deposited with the Trustee pursuant to this Section 9 . 5 shall be denominated in the currency or denomination of the Debentures in respect of which such deposit is made . If the Trustee is unable to apply any money in accordance with this Section 9 . 5 by reason of any legal proceeding or any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company's obligations under this Indenture and the affected Debentures shall be revived and reinstated as though no money had been deposited pursuant to this Section 9 . 5 until such time as the Trustee is permitted to apply all such money in accordance with this Section 9 . 5 , provided that if the Company has made any payment in respect of the principal and/or the interest (if any) on Debentures or, as applicable, other amounts because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the holders of such Debentures to receive such payment from the money or securities held by the Trustee . 6. Continuance  of  Rights, Duties and Obligations (a) Where trust funds or trust property have been deposited pursuant to Section 9 . 5 , the holders of Debentures and the Company shall continue to have and be subject to their respective rights, duties and obligations under Article 2 , Article 4 , and Article 5 . (b) Subject to the provisions of Section 9 . 6 (a) , in the event that, after the deposit of trust funds or trust property pursuant to Section 9 . 5 in respect of a series of Debentures (the " Defeased Debentures "), any holder of any of the Defeased Debentures from time to time converts its Debentures to Units or other securities of the Company in accordance with Article 6 or any other provision of this Indenture, the Trustee shall upon receipt of a Written Direction of the Company return to the Company from time to time the proportionate amount of the trust funds or other trust property deposited with the Trustee pursuant to Section 9 . 5 in respect of the Defeased Debentures which is applicable to the Defeased Debentures so converted (which amount shall be based on the applicable principal amount of the Defeased Debentures being converted in relation to the aggregate outstanding principal amount of all the Defeased Debentures) . (c) In the event that, after the deposit of trust funds or trust property pursuant to Section 9 . 5 , the Company is required to make a Change of Control Offer to purchase any outstanding Debentures pursuant to subsection 2 . 1 (h) (in respect of Debentures or the comparable provision of any other series of Debentures), in relation to Debentures or to make an offer to purchase Debentures pursuant to any other similar provisions relating to any other series of Debentures, the Company shall be entitled to use any trust money or trust property deposited with the Trustee pursuant to Section 9 . 5 for the purpose of paying to any holders of Defeased Debentures who have accepted any such offer of the Company the Total Offer Price payable to such holders in respect of such Change of Control Offer in respect of Debentures . Upon

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 62 - receipt of a Written Direction of the Company, the Trustee shall be entitled to pay to such holder from such trust money or trust property deposited with the Trustee pursuant to Section 9 . 5 in respect of the Defeased Debentures which is applicable to the Defeased Debentures held by such holders who have accepted any such offer to the Company (which amount shall be based on the applicable principal amount of the Defeased Debentures held by accepting offerees in relation to the aggregate outstanding principal amount of all the Defeased Debentures) . ARTICLE  10 MEETINGS  OF DEBENTUREHOLDERS 1. Right to Convene Meeting The Trustee or the Company may at any time and from time to time, and the Trustee shall, on receipt of a Written Direction of the Company or a written request signed by the holders of not less than 25 % of the principal amount of the Debentures then outstanding and upon receiving funding and being indemnified to its reasonable satisfaction by the Company or by the Debentureholders signing such request against the costs which may be incurred in connection with the calling and holding of such meeting, convene a meeting of the Debentureholders . In the event of the Trustee failing, within 30 days after receipt of any such request and such funding and indemnity, to give notice convening a meeting, the Company or such Debentureholders, as the case may be, may convene such meeting . Every such meeting shall be held in the City of Toronto or at such other place as may be approved or determined by the Trustee . 2. Notice  of Meetings (a) At least 21 days' notice of any meeting shall be given to the Debentureholders in the manner provided in Section 11 . 2 and a copy of such notice shall be sent by post to the Trustee, unless the meeting has been called by it . Such notice shall state the time when and the place where the meeting is to be held and shall state briefly the general nature of the business to be transacted thereat and it shall not be necessary for any such notice to set out the terms of any resolution to be proposed or any of the provisions of this Article . The accidental omission to give notice of a meeting to any holder of Debentures shall not invalidate any resolution passed at any such meeting . A holder may waive notice of a meeting either before or after the meeting . (b) Subject to Section 10 . 2 (c), the determination as to whether any business to be transacted at a meeting of Debentureholders, or any action to be taken or power to be exercised by instrument in writing under Section 10 . 15 , especially affects the rights of the Debentureholders of one or more series in a manner or to an extent differing in any material way from that in or to which it affects the rights of Debentureholders of any other series (and is therefore an especially affected series) shall be determined by an opinion of Counsel, which shall be binding on all Debentureholders, the Trustee and the Company for all purposes hereof .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 63 - (c) A proposal: (i) to extend the maturity or date of payment of interest of Debentures of any particular series or to reduce the principal amount thereof, or to impair or change any conversion right thereof ; (ii) to modify or terminate any covenant or agreement which by its terms is effective only so long as Debentures of a particular series are outstanding ; or (iii) to  reduce  with  respect  to  Debentureholders  of  any  particular  series  any   percentage stated  in this  Sec tion  10.1 or  Sections  10.4 ,  10.12  and 10.15 ; shall be deemed to especially affect the rights of the Debentureholders of such series in a manner differing in a material way from that in which it affects the rights of holders of Debentures of any other series, whether or not a similar extension, reduction, modification or termination is proposed with respect to Debentures of any or all other series . 3. Chairman Some Person, who need not be a Debentureholder, nominated in writing by the Trustee shall be chairman of the meeting and if no Person is so nominated, or if the Person so nominated is not present within 15 minutes from the time fixed for the holding of the meeting, a majority of the Debentureholders present in Person or by proxy shall choose some Person present to be chairman . 4. Quorum Subject to the provisions of Section 10 . 12 , at any meeting of the Debentureholders a quorum shall consist of Debentureholders present in person or by proxy and representing at least 25 % in principal amount of the outstanding Debentures . If a quorum of the Debentureholders shall not be present within 30 minutes from the time fixed for holding any meeting, the meeting, if summoned by the Debentureholders or pursuant to a request of the Debentureholders, shall be dissolved, but in any other case the meeting shall be adjourned to the same day in the next week (unless such day is not a Business Day in which case it shall be adjourned to the next following Business Day thereafter) at the same time and place to the extent possible and no notice shall be required to be given in respect of such adjourned meeting . At the adjourned meeting, the Debentureholders present in person or by proxy shall, subject to the provisions of Section 10 . 12 , constitute a quorum and may transact the business for which the meeting was originally convened notwithstanding that they may not represent 25 % of the principal amount of the outstanding Debentures or of the Debentures then outstanding of each especially affected series . Any business may be brought before or dealt with at an adjourned meeting which might have been brought before or dealt with at the original meeting in accordance with the notice calling the same . No business shall be transacted at any meeting unless the required quorum is present at the commencement of business .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 64 - 5. Power  to Adjourn The chairman of any meeting at which a quorum of the Debentureholders is present may, with the consent of the holders of a majority in principal amount of the Debentures represented thereat, adjourn any such meeting and no notice of such adjournment need be given except such notice, if any, as the meeting may prescribe . 6. Show  of Hands Every question submitted to a meeting shall, subject to Section 10 . 7 , be decided in the first place by a majority of the votes given on a show of hands except that votes on Extraordinary Resolutions shall be given in the manner hereinafter provided . At any such meeting, unless a poll is duly demanded as herein provided, a declaration by the chairman that a resolution has been carried or carried unanimously or by a particular majority or lost or not carried by a particular majority shall be conclusive evidence of the fact . The chairman of any meeting shall be entitled, both on a show of hands and on a poll, to vote in respect of the Debentures, if any, held by him . 7. Poll On every Extraordinary Resolution, and on any other question submitted to a meeting when demanded by the chairman or by one or more Debentureholders or proxies for Debentureholders, a poll shall be taken in such manner and either at once or after an adjournment as the chairman shall direct . Questions other than Extraordinary Resolutions shall, if a poll be taken, be decided by the votes of the holders of a majority in principal amount of the Debentures and of each especially affected series, if applicable, represented at the meeting and voted on the poll . 8. Voting On a show of hands every Person who is present and entitled to vote, whether as a Debentureholder or as proxy for one or more Debentureholders or both, shall have one vote . On a poll each Debentureholder present in Person or represented by a proxy duly appointed by an instrument in writing shall be entitled to one vote in respect of each $ 1 , 000 principal amount of Debentures of which he shall then be the holder . In the case of any Debenture denominated in a currency or currency unit other than Canadian dollars, the principal amount thereof for these purposes shall be computed in Canadian dollars on the basis of the conversion of the principal amount thereof at the applicable spot buying rate of exchange for such other currency or currency unit as reported by the Bank of Canada at the close of business on the Business Day next preceding the meeting . Any fractional amounts resulting from such conversion shall be rounded to the nearest $ 100 . A proxy need not be a Debentureholder . In the case of joint holders of a Debenture, any one of them present in Person or by proxy at the meeting may vote in the absence of the other or others but in case more than one of them be present in Person or by proxy, they shall vote together in respect of the Debentures of which they are joint holders . 9. Proxies A Debentureholder may be present and vote at any meeting of Debentureholders by an authorized representative . The Company (in case it convenes the meeting) or the Trustee (in any other case) for the purpose of enabling the Debentureholders to be present and vote at any meeting without

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 65 - producing their Debentures, and of enabling them to be present and vote at any such meeting by proxy and of lodging instruments appointing such proxies at some place other than the place where the meeting is to be held may from time to time make and vary such regulations as it shall think fit providing for and governing any or all of the following matters : (a) the form of the instrument appointing a proxy, which shall be in writing, and the manner in which the same shall be executed and the production of the authority of any Person signing on behalf of a Debentureholder ; (b) the deposit of instruments appointing proxies at such place as the Trustee, the Company or the Debentureholder convening the meeting, as the case may be, may, in the notice convening the meeting, direct and the time, if any, before the holding of the meeting or any adjournment thereof by which the same must be deposited ; and (c) the deposit of instruments appointing proxies at some approved place or places other than the place at which the meeting is to be held and enabling particulars of such instruments appointing proxies to be mailed, faxed, or sent by other electronic means before the meeting to the Company or to the Trustee at the place where the same is to be held and for the voting of proxies so deposited as though the instruments themselves were produced at the meeting . Any regulations so made shall be binding and effective and the votes given in accordance therewith shall be valid and shall be counted . Save as such regulations may provide, the only Persons who shall be recognized at any meeting as the holders of any Debentures, or as entitled to vote or be present at the meeting in respect thereof, shall be Debentureholders and Persons whom Debentureholders have by instrument in writing duly appointed as their proxies . 10. Persons Entitled  to  Attend Meetings The Company and the Trustee, by their respective officers and directors, the Auditors of the Company and the legal advisors of the Company, the Trustee or any Debentureholder (and their legal advisors) may attend any meeting of the Debentureholders, but shall have no vote as such . 11. Powers  Exercisable  by Extraordinary Resolution (a) In addition to the powers conferred upon them by any other provisions of this Indenture or by law, a meeting of the Debentureholders shall have the following powers exercisable from time to time by Extraordinary Resolution (subject, in the case of subsections (i), (ii), (iii), (iv), (vi), (xiii), (xiii) and (xiv), to applicable securities laws and regulatory requirements including the prior approval of the TSX - V, if required) : (i) power to authorize the Trustee to grant extensions of time for payment of any the principal and/or the interest on the Debentures, whether or not the principal and/or the interest, the payment of which is extended, is at the time due or overdue ;

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 66 - (ii) power to sanction any modification, abrogation, alteration, compromise or arrangement of the rights of the Debentureholders or the Trustee (subject to the prior consent of the Trustee, such consent not to be unreasonably withheld) against the Company, or against its property, whether such rights arise under this Indenture or the Debentures or otherwise ; (iii) power to assent to any modification of or change in or addition to or omission from the provisions contained in this Indenture or any Debenture which shall be agreed to by the Company and to authorize the Trustee to concur in and execute any indenture supplemental hereto embodying any modification, change, addition or omission ; (iv) power to sanction any scheme for the reconstruction, reorganization or recapitalization of the Company or for the consolidation, amalgamation, arrangement, combination or merger of the Company with any other Person or for the sale, leasing, transfer or other disposition of all or substantially all of the undertaking, property and assets of the Company or any part thereof ; (v) power to direct or authorize the Trustee to exercise any power, right, remedy or authority given to it by this Indenture in any manner specified in any such Extraordinary Resolution or to refrain from exercising any such power, right, remedy or authority ; (vi) power to waive, and direct the Trustee to waive, any default hereunder and/or cancel any declaration made by the Trustee pursuant to Section 8 . 1 either unconditionally or upon any condition specified in such Extraordinary Resolution ; (vii) power, subject to Section 8 . 5 , to restrain any Debentureholder from taking or instituting any suit, action or proceeding for the purpose of enforcing payment of the principal and/or the interest on the Debentures, or for the execution of any trust or power hereunder ; (viii) power to direct any Debentureholder who, as such, has brought any action, suit or proceeding to stay or discontinue or otherwise deal with the same upon payment, if the taking of such suit, action or proceeding shall have been permitted by Section 8 . 5 , of the costs, charges and expenses reasonably and properly incurred by such Debentureholder in connection therewith ; (i x ) power to assent to any compromise or arrangement with any creditor or creditors or any class or classes of creditors, whether secured or otherwise, and with holders of any shares or other securities of the Company ; (x) power to appoint a committee with power and authority (subject to such limitations, if any, as may be prescribed in the resolution) to exercise, and to direct the Trustee to exercise, on behalf of the Debentureholders, such of the powers of the Debentureholders as are exercisable by Extraordinary

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 67 - Resolution or other resolution as shall be included in the resolution appointing the committee . The resolution making such appointment may provide for payment of the expenses and disbursements of and compensation to such committee . Such committee shall consist of such number of Persons as shall be prescribed in the resolution appointing it and the members need not be themselves Debentureholders . Every such committee may elect its chairman and may make regulations respecting its quorum, the calling of its meetings and the filling of vacancies occurring in its number and its procedure generally . Such regulations may provide that the committee may act at a meeting at which a quorum is present or may act by minutes signed by the number of members thereof necessary to constitute a quorum . All acts of any such committee within the authority delegated to it shall be binding upon all Debentureholders . Neither the committee nor any member thereof shall be liable for any loss arising from or in connection with any action taken or omitted to be taken by them in good faith ; ( x i) power to remove the Trustee from office and to appoint a new Trustee or Trustees provided that no such removal shall be effective unless and until a new Trustee or Trustees shall have become bound by this Indenture ; ( x ii) power to sanction the exchange of the Debentures for or the conversion thereof into shares, bonds, debentures or other securities or obligations of the Company or of any other Person formed or to be formed ; ( x iii) power to authorize the distribution in specie of any shares or securities received pursuant to a transaction authorized under the provisions of subsec tion 10 . 11 (a)(xii) ; and ( x iv) power to amend, alter or repeal any Extraordinary Resolution previously passed or sanctioned by the Debentureholders or by any committee appointed pursuant to clause 10 . 11 (a)(x) . 12. Meaning  of  "Extraordinary Resolution" (a) The expression " Extraordinary Resolution " when used in this Indenture means, subject as hereinafter in this Article provided, a resolution proposed to be passed as an Extraordinary Resolution at a meeting of Debentureholders (including an adjourned meeting) duly convened for the purpose and held in accordance with the provisions of this Article at which the holders of not less than 25 % of the principal amount of the Debentures then outstanding, are present in Person or by proxy and passed by the favourable votes of the holders of not less than 66 2 / 3 % of the principal amount of the Debentures present or represented by proxy at the meeting and voted upon on a poll on such resolution . (b) If, at any such meeting, the holders of not less than 25 % of the principal amount of the Debentures then outstanding are not present in Person or by proxy within 30 minutes after the time appointed for the meeting, then the meeting, if convened by

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 68 - or on the requisition of Debentureholders, shall be dissolved but in any other case it shall stand adjourned to such date, being not less than 14 nor more than 60 days later, and to such place and time as may be appointed by the chairman . Not less than 10 days' notice shall be given of the time and place of such adjourned meeting in the manner provided in Section 11 . 2 . Such notice shall state that at the adjourned meeting the Debentureholders present in Person or by proxy shall form a quorum . At the adjourned meeting the Debentureholders present in Person or by proxy shall form a quorum and may transact the business for which the meeting was originally convened and a resolution proposed at such adjourned meeting and passed thereat by the affirmative vote of holders of not less than 66 2 / 3 % of the principal amount of the Debentures present or represented by proxy at the meeting and voted upon on a poll shall be an Extraordinary Resolution within the meaning of this Indenture, notwithstanding that the holders of not less than 25 % in principal amount of the Debentures then outstanding, are not present in Person or by proxy at such adjourned meeting . (c) Votes  on  an  Extraordinary Resolution  shall always  be  given  on a poll  and  no   demand for  a poll on  an Extraordinary Resolution shall  be necessary. 13. Powers Cumulative Any one or more of the powers in this Indenture stated to be exercisable by the Debentureholders by Extraordinary Resolution or otherwise may be exercised from time to time and the exercise of any one or more of such powers from time to time shall not be deemed to exhaust the rights of the Debentureholders to exercise the same or any other such power or powers thereafter from time to time . 14. Minutes Minutes of all resolutions and proceedings at every meeting as aforesaid shall be made and duly entered in books to be from time to time provided for that purpose by the Trustee at the expense of the Company, and any such minutes as aforesaid, if signed by the chairman of the meeting at which such resolutions were passed or proceedings had, or by the chairman of the next succeeding meeting of the Debentureholders, shall be prima facie evidence of the matters therein stated and, until the contrary is proved, every such meeting, in respect of the proceedings of which minutes shall have been made, shall be deemed to have been duly held and convened, and all resolutions passed thereat or proceedings taken thereat to have been duly passed and taken . 15. Instruments in Writing All actions which may be taken and all powers that may be exercised by the Debentureholders at a meeting held as hereinbefore in this Article provided may also be taken and exercised : (i) in the case of an Extraordinary Resolution, by the holders of 66 2 / 3 % of the principal amount of all the outstanding Debentures, by an instrument in writing signed in one or more counterparts and the expression "Extraordinary Resolution" when used in this Indenture shall include an instrument so signed ; and (ii) in the case of any other resolution, by the holder of a majority of the principal

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 69 - amount of all outstanding Debentures, by an instrument in writing signed in one or more counterparts . 16. Binding Effect  of Resolutions Every resolution and every Extraordinary Resolution passed in accordance with the provisions of this Article at a meeting of Debentureholders shall be binding upon all the Debentureholders, whether present at or absent from such meeting, and every instrument in writing signed by Debentureholders in accordance with Section 10 . 15 shall be binding upon all the Debentureholders, whether signatories thereto or not, and each and every Debentureholder, the Company and the Trustee (subject to the provisions for its indemnity herein contained) shall be bound to give effect accordingly to every such resolution, Extraordinary Resolution and instrument in writing . 17. Evidence  of  Rights  Of Debentureholders (a) Any request, direction, notice, consent or other instrument which this Indenture may require or permit to be signed or executed by the Debentureholders may be in any number of concurrent instruments of similar tenor signed or executed by such Debentureholders . (b) The Trustee may, in its discretion, require proof of execution in cases where it deems proof desirable and may accept such proof as it shall consider proper . ARTICLE 11   NOTICES 1. Notice  to Company Any notice to the Company under the provisions of this Indenture shall be valid and effective if delivered or emailed to the Company at : Suite 1107 , 120 Eglinton Avenue East, Toronto, Ontario, Canada M 4 P 1 E 2 , Attention : Kevin Barnes, Email : kb@poet - technologies . com ; or if given by registered letter, postage prepaid, to such offices and so addressed and if mailed, shall be deemed to have been effectively given three days following the mailing thereof . The Company may from time to time notify the Trustee in writing of a change of address which thereafter, until changed by like notice, shall be the address of the Company for all purposes of this Indenture . 2. Notice  to Debentureholders (a) All notices to be given hereunder with respect to the Debentures shall be deemed to be validly given to the holders thereof if sent by first class mail, postage prepaid, by letter or circular addressed to such holders at their post office addresses appearing in any of the registers hereinbefore mentioned and shall be deemed to have been effectively given three days following the day of mailing . Accidental error or omission in giving notice or accidental failure to mail notice to any Debentureholder or the inability of the Company to give or mail any notice due to anything beyond the reasonable control of the Company shall not invalidate any action or proceeding founded thereon .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 70 - (b) If any notice given in accordance with the foregoing paragraph would be unlikely to reach the Debentureholders to whom it is addressed in the ordinary course of post by reason of an interruption in mail service, whether at the place of dispatch or receipt or both, the Company shall give such notice by publication at least once in the city of Toronto (or in such of those cities as, in the opinion of the Trustee, is sufficient in the particular circumstances), each such publication to be made in a daily newspaper of general circulation in the designated city . (c) Any notice given to Debentureholders by publication shall be deemed to have been given on the day on which publication shall have been effected at least once in each of the newspapers in which publication was required . (d) All notices with respect to any Debenture may be given to whichever one of the holders thereof (if more than one) is named first in the registers hereinbefore mentioned, and any notice so given shall be sufficient notice to all holders of any Persons interested in such Debenture . 3. Notice  to Trustee Any notice to the Trustee under the provisions of this Indenture shall be valid and effective if delivered, receipt confirmed, to the Trustee at its office in the City of Toronto, Ontario, at 100 Adelaide Street West, Suite 301 , Toronto, Ontario M 5 H 4 H 1 , Email : tmxestaff - corporatetrust@tmx . com , Attention : Vice President Trust Services and shall be deemed to have been effectively given as at the date of such receipt confirmation or if given by registered letter, postage prepaid, to such office and so addressed and, if mailed, shall be deemed to have been effectively given three days following the mailing thereof . 4. Mail Service Interruption If by reason of any interruption of mail service, actual or threatened, any notice to be given to the Trustee would reasonably be unlikely to reach its destination by the time notice by mail is deemed to have been given pursuant to Section 11 . 3 , such notice shall be valid and effective only if delivered at the appropriate address in accordance with Section 11 . 3 . ARTICLE  12   CONCERNING  THE TRUSTEE 12.1 No Conflict  of Interest The Trustee represents to the Company that to the best of its knowledge at the date of execution and delivery by it of this Indenture there exists no material conflict of interest in the role of the Trustee as a fiduciary hereunder but if, notwithstanding the provisions of this Section 12 . 1 , such a material conflict of interest exists, or hereafter arises, the validity and enforceability of this Indenture, and the Debentures issued hereunder, shall not be affected in any manner whatsoever by reason only that such material conflict of interest exists or arises but the Trustee shall, within 30 days after ascertaining that it has a material conflict of interest, either eliminate such material conflict of interest or resign in the manner and with the effect specified in Section 12 . 2 . The Trustee also serves as the transfer agent for the Common Shares and as Warrant agent under the Warrant

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 71 - Indenture and  the  warrant indenture dated March  21, 2018  between  the Company  and TSX  Trust   Company. 2. Replacement  of  Trustee (a) The Trustee may resign its trust and be discharged from all further duties and liabilities hereunder by giving to the Company 90 days' notice in writing or such shorter notice as the Company may accept as sufficient . If at any time a material conflict of interest exists in the Trustee's role as a fiduciary hereunder the Trustee shall, within 30 days after ascertaining that such a material conflict of interest exists, either eliminate such material conflict of interest or resign in the manner and with the effect specified in this Section 12 . 2 . The validity and enforceability of this Indenture and of the Debentures issued hereunder shall not be affected in any manner whatsoever by reason only that such a material conflict of interest exists . In the event of the Trustee resigning or being removed or being dissolved, becoming bankrupt, going into liquidation or otherwise becoming incapable of acting hereunder, the Company shall forthwith appoint a new Trustee unless a new Trustee has already been appointed by the Debentureholders . Failing such appointment by the Company, the retiring Trustee or any Debentureholder may apply to a judge of the Ontario Superior Court of Justice, on such notice as such judge may direct at the Company's expense, for the appointment of a new Trustee but any new Trustee so appointed by the Company or by the Court shall be subject to removal as aforesaid by the Debentureholders and the appointment of such new Trustee shall be effective only upon such new Trustee becoming bound by this Indenture . Any new Trustee appointed under any provision of this Section 12 . 2 shall be a Company authorized to carry on the business of a trust company in all of the Provinces and Territories of Canada . On any new appointment the new Trustee shall be vested with the same powers, rights, duties and responsibilities as if it had been originally named herein as Trustee . (b) Any company into which the Trustee may be merged or, with or to which it may be consolidated, amalgamated or sold, or any company resulting from any merger, consolidation, sale or amalgamation to which the Trustee shall be a party, or any company which shall purchase all or substantially all of the corporate trust book of business of the Trustee, shall be the successor trustee under this Indenture without the execution of any instrument or any further act . Nevertheless, upon the written request of the successor Trustee or of the Company, the Trustee ceasing to act shall execute and deliver an instrument assigning and transferring to such successor Trustee, upon the trusts herein expressed, all the rights, powers and trusts of the Trustee so ceasing to act, and, upon receipt by the Trustee of payment in full for any outstanding charges due to it, shall duly assign, transfer and deliver all property and money held by such Trustee to the successor Trustee so appointed in its place . Should any deed, conveyance or instrument in writing from the Company be required by any new Trustee for more fully and certainly vesting in and confirming to it such estates, properties, rights, powers and trusts, then any and all such deeds, conveyances and instruments in writing shall on request of said new Trustee, be made, executed, acknowledged and delivered by the Company .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 72 - 3. Duties  of Trustee In the exercise of the rights, duties and obligations prescribed or conferred by the terms of this Indenture, the Trustee shall act honestly and in good faith and exercise that degree of care, diligence and skill that a reasonably prudent trustee would exercise in comparable circumstances . 4. Reliance Upon  Declarations,  Opinions, etc. In the exercise of its rights, duties and obligations hereunder the Trustee may, if acting in good faith, act and rely, as to the truth of the statements and accuracy of the opinions expressed therein, upon statutory declarations, opinions, reports or certificates furnished pursuant to any covenant, condition or requirement of this Indenture or required by the Trustee to be furnished to it in the exercise of its rights and duties hereunder, if the Trustee examines such statutory declarations, opinions, reports or certificates and determines that they comply with Section 12 . 5 , if applicable, and with any other applicable requirements of this Indenture . The Trustee may nevertheless, in its discretion, require further proof in cases where it deems further proof desirable . Without restricting the foregoing, the Trustee may act and rely on an opinion of Counsel satisfactory to the Trustee notwithstanding that it is delivered by a solicitor or firm which acts as solicitors for the Company . 5. Evidence and Authority  to  Trustee,  Opinions,  etc. (a) The Company shall furnish to the Trustee evidence of compliance with the conditions precedent provided for in this Indenture relating to any action or step required or permitted to be taken by the Company or the Trustee under this Indenture or as a result of any obligation imposed under this Indenture, including without limitation, the certification and delivery of Debentures hereunder, the satisfaction and discharge of this Indenture and the taking of any other action to be taken by the Trustee at the request of or on the application of the Company, forthwith if and when (a) such evidence is required by any other Section of this Indenture to be furnished to the Trustee in accordance with the terms of this Section 12 . 5 , or (b) the Trustee, in the exercise of its rights and duties under this Indenture, gives the Company written notice requiring it to furnish such evidence in relation to any particular action or obligation specified in such notice . (b) Such evidence  shall consist of: (i) a certificate made by any one officer or director of the Company, stating that any such condition precedent has been complied with in accordance with the terms of this Indenture ; (ii) in the case of a condition precedent compliance with which is, by the terms of this Indenture, made subject to review or examination by a solicitor, an opinion of Counsel that such condition precedent has been complied with in accordance with the terms of this Indenture ; and (iii) in the case of any such condition precedent compliance with which is subject to review or examination by auditors or accountants, an opinion or report of the Auditors of the Company whom the Trustee for such purposes

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 73 - hereby  approves,  that such  condition precedent  has  been complied  with in   accordance  with the terms of this  Indenture. (c) Whenever such evidence relates to a matter other than the certification and delivery of Debentures and the satisfaction and discharge of this Indenture, and except as otherwise specifically provided herein, such evidence may consist of 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, provided that if such report or opinion is furnished by a director, officer or employee of the Company it shall be in the form of a statutory declaration . Such evidence shall be, so far as appropriate, in accordance with the immediately preceding paragraph of this Section . (d) Each statutory declaration, certificate, opinion or report with respect to compliance with a condition precedent provided for in the Indenture shall include (a) a statement by the Person giving the evidence that he has read and is familiar with those provisions of this Indenture relating to the condition precedent in question, (b) a brief statement of the nature and scope of the examination or investigation upon which the statements or opinions contained in such evidence are based, (c) a statement that, in the belief of the Person giving such evidence, he has made such examination or investigation as is necessary to enable him to make the statements or give the opinions contained or expressed therein, and (d) a statement whether in the opinion of such Person the conditions precedent in question have been complied with or satisfied . (e) The Company shall furnish or cause to be furnished to the Trustee at any time if the Trustee reasonably so requires, its certificate that the Company has complied with all covenants, conditions or other requirements contained in this Indenture, the non - compliance with which would, with the giving of notice or the lapse of time, or both, or otherwise, constitute an Event of Default, or if such is not the case, specifying the covenant, condition or other requirement which has not been complied with and giving particulars of such non - compliance . The Company shall, whenever the Trustee so requires, furnish the Trustee with evidence by way of statutory declaration, opinion, report or certificate as specified by the Trustee as to any action or step required or permitted to be taken by the Company or as a result of any obligation imposed by this Indenture . 12.6 Officer's Certificates Evidence Except as otherwise specifically provided or prescribed by this Indenture, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or omitting any action hereunder, the Trustee, if acting in good faith, may act and rely upon an Officer's Certificate .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 74 - 7. Experts, Advisers and Agent The Trustee may : (a) employ or retain legal counsel and advisors as may reasonably be required for the purpose of determining and discharging its duties and determining its rights under this Indenture and may act and rely on the opinion or advice of or information obtained from any legal counsel, advisors, auditor, valuer, engineer, surveyor, appraiser or other expert, whether obtained by the Trustee or by the Company, or otherwise, and shall not be liable for acting, or refusing to act, in good faith on any such opinion or advice and shall not be responsible for any misconduct on the part of any of them and may pay proper compensation for all such legal and other advice or assistance as aforesaid . The costs of such services shall be added to and become part of the Trustee's remuneration hereunder ; and (b) employ such agents and other assistants as it may reasonably require for the proper discharge of its duties hereunder, and may pay remuneration for all services performed for it (and shall be entitled to receive full remuneration for all services performed by it) in the discharge of the trusts hereof and compensation for all disbursements, costs and expenses made or incurred by it in the discharge of its duties hereunder and in the management of the trusts hereof and any solicitors employed or consulted by the Trustee may, but need not be, solicitors for the Company . 8. Trustee May  Deal  in Debentures Subject to Sections 12 . 1 and 12 . 3 , the Trustee may, in its personal or other capacity, buy, sell, lend upon and deal in the Debentures and generally contract and enter into financial transactions with the Company or otherwise, without being liable to account for any profits made thereby . 9. Trustee Not Ordinarily Bound Except as provided in Section 8 . 2 and as otherwise specifically provided herein, the Trustee shall not, subject to Section 12 . 3 , be bound to give notice to any Person of the execution hereof, nor to do, observe or perform or see to the observance or performance by the Company of any of the obligations herein imposed upon the Company or of the covenants on the part of the Company herein contained, nor in any way to supervise or interfere with the conduct of the Company's business, unless the Trustee shall have been required to do so in writing by the holders of not less than 25 % of the aggregate principal amount of the Debentures then outstanding or by any Extraordinary Resolution of the Debentureholders passed in accordance with the provisions contained in Article 10 , and then only after it shall have been funded and indemnified to its satisfaction against all actions, proceedings, claims and demands to which it may render itself liable and all costs, charges, damages and expenses which it may incur by so doing . The Trustee is not required to take notice of any default hereunder, unless and until notified in writing of such default, which notice shall distinctly specify the default desired to be brought to the attention of the Trustee and, in the absence of any such notice, the Trustee may for all purposes of this Indenture conclusively assume that no default has been made in the observance or

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 75 - performance of any of the representations, debentures, covenants, agreements, or conditions contained herein . 10. Trustee Not Required  to  Give Security The Trustee shall not be required to give any bond or security in respect of the execution of the trusts and powers of this Indenture or otherwise in respect of the premises . 11. Conditions  Precedent  to  Trustee's  Obligations to  Act  Hereunder (a) The obligation of the Trustee to commence or continue any act, action or proceeding for the purpose of enforcing the rights of the Trustee and of the Debentureholders hereunder shall be conditional upon the Debentureholders furnishing when required by notice in writing by the Trustee, sufficient funds to commence or continue such act, action or proceeding and indemnity reasonably satisfactory to the Trustee to protect and hold harmless the Trustee, its officers, directors, employees and agents, against the costs, charges and expenses and liabilities to be incurred thereby and any loss and damage it may suffer by reason thereof . (b) None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers . (c) The Trustee may, before commencing or at any time during the continuance of any such act, action or proceeding require the Debentureholders at whose instance it is acting to deposit with the Trustee the Debentures held by them for which Debentures the Trustee shall issue receipts . 12. Authority to Carry on Business The Trustee represents to the Company that at the date of execution and delivery by it of this Indenture it is authorized to carry on the business of a trust company in each of the provinces and territories of Canada but if, notwithstanding the provisions of this Section 12 . 12 , it ceases to be so authorized to carry on business, the validity and enforceability of this Indenture and the securities issued hereunder shall not be affected in any manner whatsoever by reason only of such event but the Trustee shall, within 90 days after ceasing to be authorized to carry on the business of a trust company in any of the provinces of Canada, either become so authorized or resign in the manner and with the effect specified in Section 12 . 2 . 13. Compensation and Indemnity (a) The Company shall pay to the Trustee from time to time compensation for its services hereunder as agreed separately by the Company and the Trustee, and shall pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in the administration or execution of its duties under this Indenture (including the reasonable and documented compensation and disbursements of its Counsel and all other advisers

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 76 - and assistants not regularly in its employ), both before any default hereunder and thereafter until all duties of the Trustee under this Indenture shall be finally and fully performed . Any fees and expenses of the Trustee in connection herewith shall be paid by the Company within 30 days of issuance of an invoice therefor and, if not so paid, shall bear interest at a rate per annum to the then - current rate of interest charged by the Trustee to its corporate clients . The Trustee's compensation shall not be limited by any law on compensation of a trustee of an express trust . (b) The Company hereby indemnifies and holds the Trustee and its affiliates, their successors and assigns, as well as its and their respective directors, officers, employees and agents, harmless from and against any and all claims, demands, assessments, interest, penalties, actions, suits, proceedings, liabilities, losses, damages, costs and expenses, including, without limiting the foregoing, expert, consultant and counsel fees and disbursements on a solicitor and client basis, arising from or in connection with any actions or omissions that the Trustee or they take pursuant to this Indenture, or is taken on advice and instructions given to the Trustee or them by the Company, or the Company's representatives, including the Company's legal counsel, or counsel consulted by the Trustee or them, provided that any such action or omission is without gross negligence, bad faith, wilful misconduct or fraud . This indemnity shall survive the resignation or removal of the Trustee and the termination or discharge of this Indenture . (c) In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including but not limited to, loss of profit) irrespective of whether the Trustee was advised of the likelihood of such loss or damage and regardless of the form of action . 14. Acceptance  of  Trust The Trustee hereby accepts the trusts in this Indenture declared and provided for and agrees to perform the same upon the terms and conditions herein set forth and to hold all rights, privileges and benefits conferred hereby and by law in trust for the various Persons who shall from time to time be Debentureholders, subject to all the terms and conditions herein set forth . 15. Third Party Interests Each party to this Indenture (in this paragraph referred to as a "representing party") hereby represents to the Trustee that any account to be opened by, or interest to be held by, the Trustee in connection with this Indenture, for or to the credit of such representing party, either (i) is not intended to be used by or on behalf of any third party ; or (ii) is intended to be used by or on behalf of a third party, in which case such representing party hereby agrees to complete, execute and deliver forthwith to the Trustee a declaration, in the Trustee's prescribed form or in such other form as may be satisfactory to it, as to the particulars of such third party . 16. Anti - Money Laundering The Trustee shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the Trustee, in its sole judgment,

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 77 - determines that such act might cause it to be in noncompliance with any applicable anti - money laundering or anti - terrorist or economic sanctions legislation, regulation or guideline . Further, should the Trustee, in its sole judgment, determine at any time that its acting under this Indenture has resulted in its being in non - compliance with any applicable anti - money laundering or anti - terrorist or economic sanctions legislation, regulation or guideline, then it shall have the right to resign on 10 days' prior written notice sent to the Company provided that (i) the Trustee's written notice shall describe the circumstances of such non - compliance ; and (ii) if such circumstances are rectified to the Trustee's satisfaction within such 10 - day period, then such resignation shall not be effective . 17. Privacy  Laws (a) The parties acknowledge that the Trustee may, in the course of providing services hereunder, collect or receive financial and other personal information about such parties and/or their representatives, as individuals, or about other individuals related to the subject matter hereof, and use such information for the following purposes : (i) to provide the  services  required  under  this  Indenture and  other  services that   may  be  requested from  time to time; (ii) to help the Trustee manage its servicing relationships with such individuals; (iii) to  meet  the  Trustee's  legal and  regulatory requirements; and (iv) if Social Insurance Numbers are collected by the Trustee, to perform tax reporting and to assist in verification of an individual's identity for security purposes . (b) Each party acknowledges and agrees that the Trustee may receive, collect, use and disclose personal information provided to it or acquired by it in the course of this Indenture for the purposes described above and, generally, in the manner and on the terms described in its Privacy Code, which the Trustee shall make available on its website or upon request, including revisions thereto . The Trustee may transfer personal information to other companies in or outside of Canada that provide data processing and storage or other support in order to facilitate the services it provides . 12.18  Force Majeure Neither party shall be liable to the other, or held in breach of this Indenture, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act of God, riots, terrorism, acts of war, epidemics, governmental action or judicial order, earthquakes, or any other similar causes (including, but not limited to, mechanical, electronic or communication interruptions, disruptions or failures) . Performance times under this Indenture shall be extended for a period of time equivalent to the time lost because of any delay that is excusable under this Sec tion 12 . 18 .

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 78 - ARTICLE  13   SUPPLEMENTAL INDENTURES 1. Supplemental Indentures (a) Subject to regulatory approvals, from time to time the Trustee and, when authorized by a resolution of the directors of Company, the Company, may, and they shall when required by this Indenture, execute, acknowledge and deliver by their proper officers deeds or indentures supplemental hereto which thereafter shall form part hereof, for any one or more of the following purposes : (i) adding to the covenants of the Company herein contained for the protection of the Debentureholders, or of the Debentures of any series, or providing for events of default, in addition to those herein specified ; (ii) making such provisions not inconsistent with this Indenture as may be necessary or desirable with respect to matters or questions arising hereunder, including the making of any modifications in the form of the Debentures which do not affect the substance thereof and which in the opinion of the Trustee relying on an opinion of Counsel will not be prejudicial to the interests of the Debentureholders ; (iii) evidencing the succession, or successive successions, of others to the Company and the covenants of and obligations assumed by any such successor in accordance with the provisions of this Indenture ; (iv) giving effect  to any Extraordinary  Resolution passed as provided  in  Article  10 ; and (v) for  any  other  purpose  not  inconsistent  with the  terms  of this Indenture. (b) Unless the supplemental indenture requires the consent or concurrence of Debentureholders or the holders of a particular series of Debentures, as the case may be, by Extraordinary Resolution, the consent or concurrence of Debentureholders or the holders of a particular series of Debentures, as the case may be, shall not be required in connection with the execution, acknowledgement or delivery of a supplemental indenture . The Company and the Trustee may amend any of the provisions of this Indenture related to matters of United States law or the issuance of Debentures into the United States in order to ensure that such issuances can be made in accordance with applicable law in the United States without the consent or approval of the Debentureholders . Further, the Company and the Trustee may without the consent or concurrence of the Debentureholders or the holders of a particular series of Debentures, as the case may be, by supplemental indenture or otherwise, make any changes or corrections in this Indenture which it shall have been advised by Counsel are required for the purpose of curing or correcting any ambiguity or defective or inconsistent provisions or clerical omissions or mistakes or manifest errors contained herein or in any indenture supplemental hereto or any Written Direction of the Company providing for the issue of Debentures, provided

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 79 - that in the opinion of the Trustee (relying upon an opinion of Counsel) the rights of   the  Debentureholders  are in no way  prejudiced thereby. ARTICLE  14   EXECUTION AND FORMAL DATE 1. Execution This Indenture may be simultaneously executed in several counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument . 2. Formal Date For the purpose of convenience this Indenture may be referred to as bearing the formal date of April 3 , 2019 irrespective of the actual date of execution hereof . [ The  remainder of  this page has been intentionally left  blank.  Signature pages follow. ]

     

     

    

IN  WITNESS  WHEREOF  the  parties  have  executed  this  Indenture  as  of  the  day  and  y ear  first  above   written. POET  TECHNOLOGIES INC. ೦ 7 By: -------------- Name:  Kevin Barnes Title:  Corporate  Controller  and Treasurer TSX  TRUST COMPANY By : -------------- Name: Title: By : Name:   Title: [Signature Page  - Debenture Indenture ]

     

     

    

- 80 - IN  WITNESS  WHEREOF  the  parties  hereto  have  executed  this  Indenture  under the  hands  of  their   proper  officers  in  that behalf. POET  TECHNOLOGIES INC. By: Authorized  Signing Officer TSX  TRUST COMPANY By: · ೦ I By: ೦ De rri ce Rich ards Ja net S hod lpo eorporate  Trust ""Olll "" IOBI' -

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 SCHEDULE  "A"   FORM  OF DEBENTURE [DEBENTURES LEGEND] UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE AUGUST 4 , 2019 . [Note : If required by Section 2 . 11 , this certificate will have the following legend added hereto : WITHOUT PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL AUGUST 4 , 2019 . [Note : If Debentures are issued to a U . S . Purchaser, this certificate will have the following legend added hereto : THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON CONVERSION OR EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 , AS AMENDED (THE "SECURITIES ACT"), OR ANY LAWS OF ANY STATE OF THE UNITED STATES . THE HOLDER HEREOF, BY PURCHASING THESE SECURITIES, AGREES FOR THE BENEFIT OF POET TECHNOLOGIES INC . (THE "CORPORATION") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM REGISTRATION UNDER THE U . S . SECURITIES ACT PROVIDED BY ( 1 ) RULE 144 THEREUNDER, IF AVAILABLE, OR ( 2 ) RULE 144 A THEREUNDER, IF AVAILABLE, AND IN BOTH CASES, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)( 1 ) OR (D) ABOVE, THE SELLER FURNISHES TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR SUCH OTHER EVIDENCE IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO SUCH EFFECT . DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA . ]

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 No. Ɣ $ Ɣ POET TECHNOLOGIES INC. (A corporation  existing  under the  laws  of  the Province  of Ontario)   12.00%  UNSECURED CONVERTIBLE DEBENTURE DUE April  3, 2021 POET TECHNOLOGIES INC . (the " Corporation ") for value received hereby acknowledges itself indebted and, subject to the provisions of the Convertible Debenture Indenture (the " Indenture ") dated as of April 3 , 2019 between the Corporation and TSX TRUST COMPANY (the " Trustee "), promises to pay to , the registered holder hereof on April 3 , 2021 or on such earlier date as the principal amount hereof may become due in accordance with the provisions of the Indenture (any such date, the " Maturity Date ") the principal sum of Ɣ Dollars ( $ Ɣ ) in lawful money of Canada on presentation and surrender of this Debenture at the office of the Trustee in Toronto, Ontario in accordance with and subject to the terms of the Indenture and, subject as hereinafter provided, to pay interest on the principal amount hereof from, and including, the date hereof, or from the last Interest Payment Date to which interest shall have been paid or made available for payment hereon, whichever is later, at the rate of 12 . 00 % per annum (based on a year of 365 days), in like money, in equal monthly instalments (less any tax required by law to be deducted) on the third day of each calendar month commencing on May 3 , 2019 and the last payment to fall due on the Maturity Date and, should the Corporation at any time make default in the payment of any principal, premium, if any, or interest, to pay interest on the amount in default at the same rate, in like money and on the same dates . For certainty, the first interest payment will be made on May 3 , 2019 and will be equal to $ 10 . 00 for each $ 1 , 000 principal amount of the Debentures . This initial debenture is one of the 12 . 00 % Unsecured Convertible Debentures (referred to herein as the " Debentures ") of the Corporation issued or issuable in one or more series under the provisions of the Indenture . The Debentures authorized for issue immediately are limited to an aggregate principal amount of $ 14 , 000 , 000 in lawful money of Canada, in connection with the Offering . Reference is hereby expressly made to the Indenture for a description of the terms and conditions upon which the Debentures are or are to be issued and held and the rights and remedies of the holders of the Debentures and of the Corporation and of the Trustee, all to the same effect as if the provisions of the Indenture were herein set forth to all of which provisions the holder of this Debenture by acceptance hereof assents . The Debentures are issuable only in denominations of $ 1 , 000 and integral multiples thereof . Upon compliance with the provisions of the Indenture, Debentures of any denomination may be exchanged for an equal aggregate principal amount of Debentures in any other authorized denomination or denominations . Subject to the terms and conditions of the Indenture, the outstanding principal amount of the Debentures shall be repaid by the Company to the Debentureholders on the Maturity Date with a payment equal to 100 % of the outstanding principal sum .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 2 - The Company shall satisfy its Interest Obligation on the Debentures on any Interest Payment Date (including, for greater certainty, following conversion or upon maturity) by delivering cash to the Trustee . Any part, being $ 1 , 000 or an integral multiple thereof, of the principal of this Debenture, provided that the principal amount of this Debenture is in a denomination in excess of $ 1 , 000 , is convertible, at the option of the holder hereof, upon surrender of this Debenture at the principal office of the Trustee in Toronto, Ontario, at any time following November 1 , 2019 and prior to the close of business on the Business Day preceding the Maturity Date or, if called for repurchase pursuant to a Change of Control (as defined in the Indenture) on the last Business Day immediately prior to the payment date, into units (" Units ") consisting of one ( 1 ) common share of the Corporation (the " Common Share ") and one ( 1 ) Common Share purchase warrant (" Warrant ") (without adjustment, except as otherwise described in the Indenture) at a conversion price of $ 0 . 40 per Unit (the " Conversion Price "), being a rate of approximately 2 , 500 Common Shares and 2 , 500 Warrants for each $ 1 , 000 principal amount of Debentures, all subject to the terms and conditions and in the manner set forth in the Indenture . Each one ( 1 ) full Warrant entitles the holder thereof to purchase one ( 1 ) Common Share at a price of $ 0 . 50 per share (subject to adjustment as set forth in the Indenture) for a period of four ( 4 ) years from the date of the Indenture . The Indenture makes provision for the adjustment of the Conversion Price in the events therein specified . No fractional Common Shares or Warrants will be issued on any conversion . If a Debenture is surrendered for conversion on an Interest Payment Date the person or persons entitled to receive Common Shares and Warrants in respect of the Debentures so surrendered for conversion shall not become the holder or holders of record of such Common Shares and Warrants until the Business Day following such Interest Payment Date and, for clarity, any interest payable on such Debentures will be for the account of the holder of record of such Debentures at the close of business on the relevant interest record date . Following the closing of the DenseLight Transaction and prior to the Maturity Date, each holder of Debentures shall have the right to require the Company to purchase, on the last day of each calendar month (or the first Business Day after such date if not a Business Day) (each, a " Put Date "), all or any part of such holder's outstanding Debentures in accordance with the requirements of Applicable Securities Legislation in cash at a price equal to the principal amount thereof plus accrued and unpaid interest, if any, on such Debentures up to, but excluding, the Put Date, in accordance with and subject to the terms of the Indenture . Upon the occurrence of a Change of Control, the holders of the Debentures shall, in their sole discretion, have the right to require the Corporation to, either : (i) purchase the Debentures (the " Change of Control Purchase Option ") at a price equal to 100 % of the principal amount thereof plus accrued and unpaid interest on such principal up to (but excluding) the date the Debentures are so repurchased ; or (ii) if the Change of Control results in a new or continuing issuer that is a "reporting issuer", convert the Debentures into a replacement debenture of the resulting issuer, on substantially the same terms as the Debentures, in the aggregate principal amount of 100 % of the aggregate principal amount of the Debentures held by such Debentureholder . If 90 % or more of the principal amount of all Debentures outstanding on the date the Corporation provides notice of a Change of Control to the Trustee have been surrendered for purchase pursuant to the Change of Control Purchase Option, the Corporation has the right to redeem all the remaining outstanding Debentures on the same date and at the same price .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 3 - The indebtedness evidenced by this Debenture, and by all other Debentures now or hereafter certified and delivered under the Indenture, is a direct unsecured obligation of the Corporation, and is subordinated in right of payment, to the extent and in the manner provided in the Indenture, to the prior payment in full of all Senior Indebtedness, whether outstanding at the date of the Indenture or thereafter created, incurred, assumed or guaranteed . The Indenture contains provisions making binding upon all holders of Debentures outstanding thereunder (or in certain circumstances specific series of Debentures) resolutions passed at meetings of such holders held in accordance with such provisions and instruments signed by the holders of a specified majority of Debentures outstanding (or specific series), which resolutions or instruments may have the effect of amending the terms of this Debenture or the Indenture . The Indenture contains provisions disclaiming any personal liability on the part of holders of Common Shares and officers, directors and employees of the Corporation in respect of any obligation or claim arising out of the Indenture or this Debenture . This Debenture may only be transferred, upon compliance with the conditions prescribed in the Indenture, in one of the registers to be kept at the principal offices of the Trustee in the City of Toronto and in such other place or places and/or by such other registrars (if any) as the Corporation with the approval of the Trustee may designate . No transfer of this Debenture shall be valid unless made on the register by the registered holder hereof or his executors or administrators or other legal representatives, or his or their attorney duly appointed by an instrument in form and substance satisfactory to the Trustee or other registrar, and upon compliance with such reasonable requirements as the Trustee and/or other registrar may prescribe and upon surrender of this Debenture for cancellation . Thereupon a new Debenture or Debentures in the same aggregate principal amount shall be issued to the transferee in exchange hereof . These Debentures and the Common Shares and Warrants underlying these Debentures have not been and will not be registered under the U . S . Securities Act or under the securities laws of any state of the United States . Such securities may not be offered, sold, pledged or otherwise transferred in the United States or to U . S . Persons except in limited circumstances contemplated in the Indenture . If the certificate representing these Debentures contains a U . S . restrictive legend, then the certificates representing the Common Shares and Warrants underlying these Debentures shall bear the same U . S . restrictive legend on such certificates . This Debenture shall not become obligatory for any purpose until it shall have been certified by the Trustee under the Indenture . Capitalized words or expressions used in this Debenture shall, unless otherwise defined herein, have the meaning ascribed thereto in the Indenture . In the event of any inconsistency between the terms of this Debenture and the Indenture, the terms of the Indenture shall govern .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 4 - IN WITNESS WHEREOF POET TECHNOLOGIES INC.  has  caused this  Debenture  to be   signed  by  its authorized  representative  as  of April 3, 2019. POET TECHNOLOGIES INC. By: N a me: Title:

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 TRUSTEE'S CERTIFICATE This Debenture is one of the 12.00% Unsecured Convertible Debentures due April 3, 2021 referred   to in the  Indenture  within mentioned. Dated: April  3, 2019. TSX TRUST COMPANY, as Trustee Toronto, Ontario, Canada By: Authorized  Signatory Countersigned this _ day of , 2019

     

     

    

 WSLEGAL \ 076624 \ 00009 \ 21944090v9 SCHEDULE "B"   FORM  OF TRANSFER FOR VALUE RECEIVED , the undersigned hereby sells, assigns and transfers unto , whose address and social insurance number, if applicable, are set forth below, this Debenture (or $ principal amount hereof*) of POET TECHNOLOGIES INC . (the " Corporation ") standing in the name(s) of the undersigned in the register maintained by the Corporation with respect to such Debenture and does hereby irrevocably authorize and direct the transfer of such Debenture in such register, with full power of substitution in the premises . Dated: Address  of Transferee:  (Street Address,  City, Province  and Postal Code) Social Insurance Number  of  Transferee,  if applicable: *If less than the full principal amount of the within Debenture is to be transferred, indicate in the space provided the principal amount (which must be $ 1 , 000 or an integral multiple thereof, unless you hold an Debenture in a non - integral multiple of $ 1 , 000 by reason of your having exercised your right to exchange pursuant to your election to pursue the Change of Control Purchase Option, in which case such Debenture is transferable only in its entirety) to be transferred . 1. In  the  case  of Restricted  Physical Debentures,  the  undersigned  hereby  represents, warrants and   certifies  that (one  (only)  of the following must be checked): ☐ (A) the  transfer is being  made to the Corporation; ☐ (B) the transfer is being made outside the United States in accordance with Rule 904 of Regulation S under the U . S . Securities Act and in compliance with any applicable local securities laws and regulations, and the holder has provided herewith a certificate in the form of Schedule "D" to the Indenture, ☐ (C) the transfer is being made pursuant to the exemption from the registration requirements of the U . S . Securities Exchange Act provided by (i) Rule 144 under the U . S . Securities Act, if available, or (ii) Rule 144 A under the U . S . Securities Act, if available, and in accordance with applicable state securities laws, or ☐ (D) the  transfer is  being made in  another transaction  that  does  not  require   registration under the U.S. Exchange Act or any applicable state securities laws. 2 . In the case of a transfer in accordance with (C)(i) or (D) above, the Trustee and the Corporation shall first have received an opinion of counsel of recognized standing or other evidence in form and substance reasonably satisfactory to the Corporation and to such effect .

     

     

    

- 2 - 3. The registered holder of these Debentures is responsible for the payment of any documentary, stamp or other transfer taxes that may be payable in respect of the transfer of these Debentures . 4. In the case of Unrestricted Debentures, if the proposed transfer is to, or for the account or benefit of a U . S . Person or to a person in the United States, the undersigned hereby represents, warrants and certifies that the transfer of such securities is being completed pursuant to an exemption from the registration requirements of the U . S . Securities Act and any applicable state securities laws, in which case the undersigned has furnished to the Corporation and the Trustee an opinion of counsel of recognized standing or other evidence in form and substance reasonably satisfactory to the Corporation to such effect . If such Debenture is transferred to, or for the account of benefit of, a U . S . Person or a person in the United States, the certificate representing these Debentures will bear a U . S . restrictive legend restricting the transfer of such securities under applicable U . S . federal and state securities laws . ܆ If  transfer is  to a  U.S. Person  or a  person  in the United  States, check  this box. DATED this day of , 20 . SPACE  FOR  GUARANTEES OF SIGNATURES (BELOW) ) ) ) ) ) Signature  of Transferor ) ) Guarantor's Signature/Stamp ) Name  of Transferor ) REASON FOR TRANSFER – For US Citizens or Residents only (where the individual(s) or corporation receiving the securities is a US citizen or resident) . Please select only one (see instructions below) . ܆ Gift ܆ Estate ܆ Private Sale ܆ Other (or no change  in ownership) CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ CAREFULLY The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever . All securityholders or a legally authorized representative must sign this form . The signature(s) on this form must be guaranteed in accordance with the transfer agent's then - current guidelines and WSLEGAL \ 076624 \ 00009 \ 21944090v9

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 - 3 - requirements at the time of transfer . Notarized or witnessed signatures are not acceptable as guaranteed signatures . As at the time of closing, you may choose one of the following methods (although subject to change in accordance with industry practice and standards) : ܆ Canada and the USA : A Medallion Signature Guarantee obtained from a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP) . Many commercial banks, savings banks, credit unions, and all broker dealers participate in a Medallion Signature Guarantee Program . The Guarantor must affix a stamp bearing the actual words "Medallion Guaranteed", with the correct prefix covering the face value of the certificate . ܆ Canada :  A Medallion Signature Guarantee  with the  correct  prefix  covering  the  face   value  of the certificate. ܆ Outside North America : For holders located outside North America, present the certificates(s) and/or document(s) that require a guarantee to a local financial institution that has a corresponding Canadian or American affiliate which is a member of an acceptable Medallion Signature Guarantee Program . The corresponding affiliate will arrange for the signature to be over - guaranteed . OR The signature(s) of the transferor(s) must correspond with the name(s) as written upon the face of this certificate(s), in every particular, without alteration or enlargement, or any change whatsoever . The signature(s) on this form must be guaranteed by a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP) . Notarized or witnessed signatures are not acceptable as guaranteed signatures . The Guarantor must affix a stamp bearing the actual words : "SIGNATURE GUARANTEED", "MEDALLION GUARANTEED" OR "SIGNATURE & AUTHORITY TO SIGN GUARANTEE", all in accordance with the transfer agent's then current guidelines and requirements at the time of transfer . For corporate holders, corporate signing resolutions, including certificate of incumbency, will also be required to accompany the transfer with a "MEDALLION GUARANTEED" Stamp affixed to the Form of Transfer, with the correct prefix covering the face value of the certificate . REASON FOR TRANSFER – FOR US CITIZENS OR RESIDENTS ONLY Consistent with U . S . IRS regulations, TSX Trust Company is required to request cost basis information from U . S . securityholders . Please indicate the reason for requesting the transfer as well as the date of event relating to the reason . The event date is not the day in which the transfer is finalized but, rather, the date of the event which led to the transfer request (i . e . date of gift, date of death of the securityholder, or the date the private sale took place) .

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 SCHEDULE  "C"   CONVERSION FORM TO: POET TECHNOLOGIES INC. c/o TSX Trust Company 100  Adelaide Street  West, Suite 301   Toronto, Ontario M5H 4H1 The undersigned holder of the within Debentures hereby irrevocably elects to convert his or her Debentures of POET Technologies Inc . (the " Company ") (or $ principal amount thereof*) into Common Shares and Warrants of the Company at the Conversion Price referred to in the attached Debenture Certificate on the terms and conditions set forth in such certificate and the Indenture . * If less than the full principal amount of the Debentures, indicate in the space provided the principal amount (which must be $ 1 , 000 or integral multiples thereof) . If the certificate representing these Debentures contains a U . S . restrictive legend, then the certificates representing the Common Shares and Warrants underlying these Debentures shall bear the same U . S . restrictive legend on such certificates . Once completed and executed, this Exercise Form must be mailed or delivered to POET Technologies Inc . c/o TSX Trust Company, 100 Adelaide Street West, Suite 301 , Toronto, Ontario M 5 H 4 H 1 , Attention : Corporation Actions . DATED this day of , . ) ) ) ) Witness ) ) ) Signature of Debentureholder, to be same as appears on the face of this Debenture Certificate ) ) ) Name  of  Registered Debentureholder ) [ ] Please check  this box if  the  securities  are  to be  delivered at  the  office where  these   Debentures are  surrendered,  failing which  the securities  will  be mailed.

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 SCHEDULE  "D" FORM  OF  DECLARATION  FOR  REMOVAL  OF LEGEND TO: POET TECHNOLOGIES INC. c/o TSX Trust Company 100  Adelaide Street  West, Suite 301   Toronto, Ontario M5H 4H1 The undersigned (a) acknowledges that the sale of POET Technologies Inc . (the " Corporation ") to which this declaration relates is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933 , as amended (the " U . S . Securities Act "), and (b) certifies that ( 1 ) the undersigned is not an "affiliate" (as that term is defined in Rule 405 under the U . S . Securities Act) of the Corporation (other than an officer or director of the Corporation who is an affiliate solely by virtue of holding such position), ( 2 ) the offer of such securities was not made to a person in the United States and either (A) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (B) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States, ( 3 ) neither the seller nor any affiliate of the seller nor any person acting on any of their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities, ( 4 ) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144 (a)( 3 ) under the U . S . Securities Act), ( 5 ) the seller does not intend to replace such securities with fungible unrestricted securities and ( 6 ) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S under the U . S . Securities Act, is part of a plan or scheme to evade the registration provisions of the U . S . Securities Act . Terms used herein have the meanings given to them by Regulation S under the U . S . Securities Act . Dated: By: N a me:   Title:

     

     

    

WSLEGAL \ 076624 \ 00009 \ 21944090v9 SCHEDULE "E" FORM  OF  PUT EXERCISE NOTICE PUT  EXERCISE NOTICE   TO: POET TECHNOLOGIES INC. All capitalized terms used herein  have the meaning ascribed  thereto  in the  Indenture (as defined   below), unless  otherwise indicated. The undersigned registered holder of 12 . 00 % convertible unsecured debentures (the " Debentures ") bearing Certificate No . irrevocably elects to put such Debentures (or $ principal amount thereof*) to POET Technologies Inc . (the " Corporation ") to be purchased by the Corporation on _ (the " Put Date ") in accordance with the terms of the indenture dated April 3 , 2019 (the " Indenture ") between the Corporation and TSX Trust Company, as trustee, at a price of $ 1 , 000 for each $ 1 , 000 principal amount of Debentures plus all accrued and unpaid interest thereon to, but excluding, the Put Date (collectively, the " Total Put Price "), subject to pro rata selection in accordance with the terms of the Indenture, if applicable, and tenders herewith such Debentures . Dated: (Signature  of  Registered Holder) *  If  less than  the  full  principal  amount  of  such Debenture, indicate  in the  space  provided the   principal amount (which  must be $1,000 or  integral multiples thereof). The  Total  Put  Price  will be  payable  upon presentation  and surrender  of such  Debenture  with this   form  on or  after  the third  Business  Day following the  Put Date at  the following  corporate trust   office: TSX Trust Company 100  Adelaide Street  West, Suite 301,   Toronto, Ontario M5H 4H1 Attention:  Vice  President,  Trust Services   Fax:  (416) 361 - 0470 The interest upon the principal amount of such Initial Debenture put to the Corporation will cease to be payable from and after the Put Date unless payment of the Total Put Price is not made on presentation for surrender of such Initial Debenture at the above - mentioned corporate trust office on or after the third Business Day following the Put Date or prior to the setting aside of the Total Put Price pursuant to the Indenture .

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