Document:

IntelGenx Technologies Corp.: Exhibit 4.1 - Filed by newsfilecorp.com

DRAFT 

TRUST INDENTURE 

 

between 

INTELGENX TECHNOLOGIES CORP. 

and 

TSX Trust Company 

providing for the issue of 
Convertible Unsecured
Subordinated Debentures 

Dated as of July •, 2017 

TABLE OF CONTENTS 

	  	  	Page
      
	  	  	  
	ARTICLE
      1 INTERPRETATION 	1
      
	  	  	  
	     1.1
      	Definitions
      	1
      
	     1.2
      	Meaning
      of “Outstanding” 	7
      
	     1.3
      	Interpretation
      	7
      
	     1.4
      	Headings,
      etc. 	8
      
	     1.5
      	Day
      Not a Business Day 	8
      
	     1.6
      	Applicable
      Law 	8
      
	     1.7
      	Conflict
      	8
      
	     1.8
      	Currency
      	8
      
	     1.9
      	Severability
      	8
      
	     1.10
      	Successors
      and Assigns 	8
      
	     1.11
      	Benefits
      of Indenture 	8
      
	     1.12
      	Schedules
      	9
      
	  	  	  
	ARTICLE
      2 THE DEBENTURES 	9
      
	  	  	  
	     2.1
      	Limit
      of Debentures 	9
      
	     2.2
      	Terms
      of Debentures 	9
      
	     2.3
      	Execution
      of Debentures 	15
      
	     2.4
      	Certification
      	15
      
	     2.5
      	Interim
      Debentures or Certificates 	16
      
	     2.6
      	Mutilation,
      Loss, Theft or Destruction 	16
      
	     2.7
      	Concerning
      Interest 	17
      
	     2.8
      	Debentures
      to Rank Pari Passu 	17
      
	     2.9
      	Payments
      of Amounts Due on Maturity 	17
      
	     2.10
      	Payment
      of Interest 	18
      
	     2.11
      	Withholding
      Tax 	19
      
	  	  	  
	ARTICLE
      3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP 	20
      
	  	  	  
	     3.1
      	Fully
      Registered Debentures 	20
      
	     3.2
      	Global
      Debentures 	20
      
	     3.3
      	Transferee
      Entitled to Registration 	23
      
	     3.4
      	No
      Notice of Trusts 	23
      
	     3.5
      	Registers
      Open for Inspection 	23
      
	     3.6
      	Exchanges
      of Debentures 	23
      
	     3.7
      	Closing
      of Registers 	24
      
	     3.8
      	Charges
      for Registration, Transfer and Exchange 	24
      
	     3.9
      	Ownership
      of Debentures 	24
      
	     3.10
      	NCI
      Letter of Instructions 	25
      
	  	  	  
	ARTICLE
      4 REDEMPTION AND PURCHASE OF DEBENTURES 	25
      
	  	  	  
	     4.1
      	Applicability
      of Article 	25
      
	     4.2
      	Partial
      Redemption 	26
      
	     4.3
      	Notice
      of Redemption 	27
      

	     4.4
      	Debentures
      Due on Redemption Dates 	27
      
	     4.5
      	Deposit
      of Redemption Monies or Common Shares 	27
      
	     4.6
      	Right
      to Repay Redemption Price in Common Shares 	28
      
	     4.7
      	Failure
      to Surrender Debentures Called for Redemption 	30
      
	     4.8
      	Purchase
      of Debentures by the Corporation 	31
      
	     4.9
      	Right
      to Repay Principal Amount in Common Shares 	31
      
	     4.10
      	Cancellation
      of Debentures Redeemed 	34
      
	  	  	  
	ARTICLE
      5 SUBORDINATION OF DEBENTURES 	34
      
	  	  	  
	     5.1
      	Applicability
      of Article 	34
      
	     5.2
      	Order
      of Payment 	35
      
	     5.3
      	Subrogation
      to Rights of Holders of Senior Indebtedness 	35
      
	     5.4
      	Obligation
      to Pay Not Impaired 	35
      
	     5.5
      	No
      Payment if Senior Indebtedness in Default 	36
      
	     5.6
      	Payment
      on Debentures Permitted 	36
      
	     5.7
      	Confirmation
      of Subordination 	37
      
	     5.8
      	Knowledge
      of Debenture Trustee 	37
      
	     5.9
      	Debenture
      Trustee May Hold Senior Indebtedness 	37
      
	     5.10
      	Rights
      of Holders of Senior Indebtedness Not Impaired 	37
      
	     5.11
      	Altering
      the Senior Indebtedness 	37
      
	     5.12
      	Additional
      Indebtedness 	38
      
	     5.13
      	Right
      of Debentureholder to Convert Not Impaired 	38
      
	     5.14
      	Invalidated
      Payments 	38
      
	  	  	  
	ARTICLE
      6 CONVERSION OF DEBENTURES 	38
      
	  	  	  
	     6.1
      	Applicability
      of Article 	38
      
	     6.2
      	Revival
      of Right to Convert 	38
      
	     6.3
      	Manner
      of Exercise of Right to Convert 	39
      
	     6.4
      	Adjustment
      of Conversion Price 	41
      
	     6.5
      	No
      Requirement to Issue Fractional Common Shares 	44
      
	     6.6
      	Corporation
      to Reserve Common Shares 	45
      
	     6.7
      	Cancellation
      of Converted Debentures 	45
      
	     6.8
      	Certificate
      as to Adjustment 	45
      
	     6.9
      	Notice
      of Special Matters 	45
      
	     6.10
      	Protection
      of Debenture Trustee 	46
      
	  	  	  
	ARTICLE
      7 COVENANTS OF THE CORPORATION 	46
      
	  	  	  
	     7.1
      	To
      Pay Principal, Premium (if any) and Interest 	46
      
	     7.2
      	To
      Pay Debenture Trustee’s Remuneration 	46
      
	     7.3
      	To
      Give Notice of an Event of Default 	47
      
	     7.4
      	Preservation
      of Existence, etc. 	47
      
	     7.5
      	Keeping
      of Books 	47
      
	     7.6
      	Annual
      Certificate of Compliance 	47
      
	     7.7
      	Performance
      of Covenants of Debenture Trustee 	47
      
	     7.8
      	Reporting
      Issuer and Listing Status 	47
      
	     7.9
      	Maximum
      Amount of Debentures 	48
      
	  	  	  
	ARTICLE
      8 DEFAULT 	48
      

2 

	     8.1
      	Events
      of Default 	48
      
	     8.2
      	Notice
      of Events of Default 	49
      
	     8.3
      	Waiver
      of Default 	49
      
	     8.4
      	Enforcement
      by the Debenture Trustee 	50
      
	     8.5
      	No
      Suits by Debentureholders 	51
      
	     8.6
      	Application
      of Monies by Debenture Trustee 	52
      
	     8.7
      	Notice
      of Payment by Debenture Trustee 	53
      
	     8.8
      	Debenture
      Trustee May Demand Production of Debentures 	53
      
	     8.9
      	Remedies
      Cumulative 	53
      
	     8.10
      	Judgment
      Against the Corporation 	53
      
	     8.11
      	Immunity
      of Directors and Others 	53
      
	  	  	  
	ARTICLE
      9 SATISFACTION AND DISCHARGE 	54
      
	  	  	  
	     9.1
      	Cancellation
      and Destruction 	54
      
	     9.2
      	Non-Presentation
      of Debentures 	54
      
	     9.3
      	Repayment
      of Unclaimed Monies or Common Shares 	54
      
	     9.4
      	Discharge
      	55
      
	     9.5
      	Satisfaction
      	55
      
	     9.6
      	Continuance
      of Rights, Duties and Obligations 	57
      
	  	  	  
	ARTICLE
      10 COMMON SHARE INTEREST PAYMENT ELECTION 	58
      
	  	  	  
	     10.1
      	Common
      Share Interest Payment Election 	58
      
	  	  	  
	ARTICLE
      11 SUCCESSORS 	60
      
	  	  	  
	     11.1
      	Restrictions
      on Merger and Sale of Certain Assets, etc. 	60
      
	     11.2
      	Vesting
      of Powers in Successor 	60
      
	  	  	  
	ARTICLE
      12 COMPULSORY ACQUISITION 	61
      
	  	  	  
	     12.1
      	Definitions
      In this Article 12: 	61
      
	     12.2
      	Offer
      for Debentures 	61
      
	     12.3
      	Offeror’s
      Notice to Dissenting Debentureholders 	61
      
	     12.4
      	Delivery
      of Debenture Certificates 	62
      
	     12.5
      	Payment
      of Consideration to Debenture Trustee 	62
      
	     12.6
      	Consideration
      to be held in Trust 	62
      
	     12.7
      	Completion
      of Transfer of Debentures to Offeror 	62
      
	     12.8
      	Communication
      of Offer to Trust 	63
      
	  	  	  
	ARTICLE
      13 MEETINGS OF DEBENTUREHOLDERS 	63
      
	  	  	  
	     13.1
      	Right
      to Convene Meeting 	63
      
	     13.2
      	Notice
      of Meetings 	63
      
	     13.3
      	Chair
      	64
      
	     13.4
      	Quorum
      	64
      
	     13.5
      	Power
      to Adjourn 	64
      
	     13.6
      	Show
      of Hands 	64
      
	     13.7
      	Poll
      	65
      
	     13.8
      	Voting
      	65
      

3 

	     13.9 	Proxies 	65 
	     13.10 	Persons
      Entitled to Attend Meetings 	66
  
	     13.11 	Powers Exercisable by
      Extraordinary Resolution 	66 
	     13.12 	Meaning of
      “Extraordinary Resolution” 	68
  
	     13.13 	Powers Cumulative 	68 
	     13.14 	Minutes
    	68
  
	     13.15 	Instruments in Writing
    	69 
	     13.16 	Binding
      Effect of Resolutions 	69
  
	     13.17 	Evidence of Rights of
      Debentureholders 	69 
	  	  	  
	ARTICLE 14 NOTICES 	69 
	  	  	  
	     14.1 	Notice to the Corporation
      	69 
	     14.2
      	Notice to
      Debentureholders 	70
  
	     14.3 	Notice to Debenture Trustee
      	70 
	     14.4
      	Mail Service
      Interruption 	70
  
	  	  	  
	ARTICLE 15
      CONCERNING THE DEBENTURE TRUSTEE 	71
  
	  	  	  
	     15.1
      	No Conflict
      of Interest 	71
  
	     15.2 	Replacement of Debenture
      Trustee 	71 
	     15.3
      	Duties of
      Debenture Trustee 	72
  
	     15.4 	Reliance Upon Declarations,
      Opinions, etc. 	73 
	     15.5
      	Evidence and
      Authority to Debenture Trustee, Opinions, etc 	73
  
	     15.6 	Officer’s Certificates
      Evidence 	75 
	     15.7
      	Experts,
      Advisers and Agents 	75
  
	     15.8 	Debenture Trustee May Deal
      in Debentures 	75 
	     15.9
      	Investment
      of Monies Held by Debenture Trustee 	75
  
	     15.10 	Debenture Trustee Not
      Ordinarily Bound 	76 
	     15.11 	Debenture
      Trustee Not Required to Give Security 	76
  
	     15.12 	Debenture Trustee Not Bound
      to Act on the Corporation’s Request 	76 
	     15.13 	Conditions
      Precedent to Debenture Trustee’s Obligations to Act Hereunder 	77
  
	     15.14 	Authority to Carry on
      Business 	77 
	     15.15 	Compensation
      and Indemnity 	77
  
	     15.16 	Anti-Money Laundering
	78 
	     15.17 	Acceptance
      of Trust 	79
  
	     15.18 	Privacy 	79 
	     15.19 	Force
      Majeure 	79
  
	  	  	  
	ARTICLE 16
      SUPPLEMENTAL INDENTURES 	80
  
	  	  	  
	     16.1
      	Supplemental
      Indentures 	80
  
	  	  	  
	ARTICLE 17
      EXECUTION AND FORMAL DATE; RIGHTS OF RESCISSION; CONCERNING THIS TRUST
      INDENTURE 	81
  
	  	  	  
	     17.1
      	Execution
      	81
  
	     17.2 	Formal Date 	81 
	     17.3
      	Concerning
      this Trust Indenture 	81
  

4 

TRUST INDENTURE 

THIS INDENTURE is made this •th day of July,
2017. 

	BETWEEN: 	INTELGENX TECHNOLOGIES CORP., a
      corporation incorporated under the laws of Delaware 
	  	           
                         
                       (hereinafter
      referred to as the “Corporation”) 
	  	  
	AND: 	TSX TRUST COMPANY, a trust company
      incorporated under the federal laws of Canada 
	  	           
                       (hereinafter
      referred to as the “Debenture Trustee”) 

WHEREAS the Corporation deems it necessary to create and
issue the Debentures (as defined below) in the manner herein provided; 

AND WHEREAS the Corporation is duly authorized to create
and issue the Debentures to be issued as herein provided; 

AND WHEREAS when certified by the Debenture Trustee and
issued as in this Indenture (as defined below) provided, all necessary steps in
relation to the Corporation will have been duly enacted and other proceedings
taken and conditions complied with to make the creation and issue of the
Debentures proposed to be issued hereunder legal, valid and binding on the
Corporation in accordance with the laws relating to the Corporation; 

AND WHEREAS the foregoing recitals are made as
representations and statements of fact by the Corporation and not by the
Debenture Trustee; 

NOW THEREFORE THIS AGREEMENT WITNESSES that for good and
valuable consideration mutually given and received, the receipt and sufficiency
of which is hereby acknowledged, it is hereby covenanted, agreed and declared as
follows: 

	ARTICLE 1 
	INTERPRETATION 

	1.1 	
      Definitions

In the recitals, in this Indenture and in the Debentures,
unless there is something in the subject matter or context inconsistent
therewith or unless otherwise expressly provided, including, without limitation,
as expressly provided in any indenture supplemental hereto, the following terms
will have the following meanings set out below: 

	 	1.1.1 	
      “1933 Act” means the United States Securities
      Act of 1933, as amended;

	 	 	 
	 	1.1.2 	
      “90% Redemption Right” has the meaning attributed
      thereto in Section 2.2(k)(vii);

	 	 	 
	 	1.1.3 	
      “90% Redemption Right Notice” has the meaning
      attributed thereto in Section 2.2(k)(vii);

- 2 - 

	 	1.1.4 	
      “this Trust Indenture”, “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;

	 	 	 
	 	1.1.5 	
      “Acceptance Notice” has the meaning attributed
      thereto in Section 2.2(k)(iii);

	 	 	 
	 	1.1.6 	
      “affiliate” of a Person means any Person or
      company that would be deemed to be an affiliated entity of such Person
      within the meaning of Regulation 45-106 — Prospectus Exemptions, as same
      may be replaced or amended from time to time;

	 	 	 
	 	1.1.7 	
      “Applicable Securities Legislation” means
      applicable securities laws (including rules, regulations, policies,
      blanket orders, rulings and instruments enacted thereunder) in the
      provinces of British Columbia, Alberta, Manitoba, Ontario or Québec; and
      under the 1933 Act and applicable United States securities laws;

	 	 	 
	 	1.1.8 	
      “Auditor of the Corporation” means an independent
      firm of chartered accountants duly appointed as auditor of the
      Corporation;

	 	 	 
	 	1.1.9 	
      “Beneficial Holder” means any Person who holds a
      beneficial interest in a Global Debenture as shown on the books of the
      Depositary or a Depositary Participant;

	 	 	 
	 	1.1.10 	
      “Business Day” means any day other than a
      Saturday, a Sunday, a statutory holiday in the Province of Québec, the
      Province of Ontario or the State of New York, or any other day on which
      banks are not open for business in Montréal, Québec, Toronto, Ontario or
      New York, New York;

	 	 	 
	 	1.1.11 	
      “Change of Control” means the acquisition by any
      Person, or group of Persons acting jointly or in concert (within the
      meaning given to these terms in Regulation 62-104 – Take-over bids and
      issuer bids), of voting control or direction over an aggregate of
      662⁄3% or more of the then outstanding Common Shares and securities
      convertible into or carrying the right to acquire Common Shares;

	 	 	 
	 	1.1.12 	
      “Change of Control Purchase Date” has the meaning
      attributed thereto in Section 2.2(k)(v);

	 	 	 
	 	1.1.13 	
      “Code” means the United States Internal Revenue
      Code of 1986, as amended;

	 	 	 
	 	1.1.14 	
      “Common Share Interest Payment Election” has the
      meaning attributed thereto in Section 10.1(a);

	 	 	 
	 	1.1.15 	
      “Common Share Interest Payment Election Notice”
      has the meaning attributed thereto in Section
10.1(a);

- 3 - 

	 	1.1.16 	
      “Common Share Redemption Right” has the meaning
      attributed thereto in Section 4.6(a);

	 	 	 
	 	1.1.17 	
      “Common Share Repayment Right” has the meaning
      attributed thereto in Section 4.9(a);

	 	 	 
	 	1.1.18 	
      “Common Shares” means the common shares in the
      capital of the Corporation;

	 	 	 
	 	1.1.19 	
      “Conversion Price” means $1.35 per Common Share as
      same may be adjusted, from time to time, in accordance with the provisions
      of Article 5;

	 	 	 
	 	1.1.20 	
      “Corporation” means IntelGenx Technologies Corp.
      until a successor replaces it pursuant to the applicable provisions of
      this Indenture, and thereafter “Corporation” shall mean such
      successor Corporation;

	 	 	 
	 	1.1.21 	
      “Counsel” means, as the case may be, a firm of
      barristers or solicitors retained by the Debenture Trustee or retained by
      the Corporation and acceptable to the Debenture Trustee, acting
      reasonably;

	 	 	 
	 	1.1.22 	
      “Current Market Price” means, as of any date, the
      volume weighted average trading price per Common Share on the TSXV for the
      20 consecutive trading days ending on the fifth trading day before such
      date (if the Common Shares are not listed thereon, then on such stock
      exchange on which the Common Shares are listed as may be selected for such
      purpose by the Directors; or if the Common Shares are not listed on any
      stock exchange, then on the over-the-counter market); the volume weighted
      average trading price will be determined by dividing the aggregate sale
      price of all Common Shares sold on the said exchange or market, as the
      case may be, during the said 20 consecutive trading days, by the total
      number of Common Shares so sold;

	 	 	 
	 	1.1.23 	
      “Date of Conversion” has the meaning attributed
      thereto in Section 6.3(b);

	 	 	 
	 	1.1.24 	
      “Debenture Offer” has the meaning attributed
      thereto in Section 2.2(k)(i);

	 	 	 
	 	1.1.25 	
      “Debenture Trustee” means TSX Trust Company or its
      successor or successors for the time being as trustee hereunder;

	 	 	 
	 	1.1.26 	
      “Debentureholders” or “holders” means the
      Persons for the time being entered in the register for Debentures as
      registered holders of Debentures;

	 	 	 
	 	1.1.27 	
      “Debentures” means the Debentures issued hereunder
      and the Debentures designated as “8.00% Convertible Unsecured Subordinated
      Debentures”, having the terms described in Article 2;

	 	 	 
	 	1.1.28 	
      “Defeased Debentures” has the meaning attributed
      thereto in Section 9.6(b);

	 	 	 
	 	1.1.29 	
      “Depositary” means, with respect to the Debentures
      issuable or issued in the form of one or more Global Debentures, the
      Person designated as depositary by the Corporation pursuant to the terms
      hereof;

- 4 - 

	 	1.1.30 	
      “Depositary Participant” means a broker, dealer,
      bank, other financial institution or other Person for whom from time to
      time a Depositary effects book-entry settlement for a Global Debenture
      deposited with the Depositary;

	 	 	 
	 	1.1.31 	
      “Directors” means the directors of the Corporation
      and reference to action “by the Directors” means action by the Directors
      of the Corporation;

	 	 	 
	 	1.1.32 	
      “Event of Default” has the meaning attributed
      thereto in Section 8.1;

	 	 	 
	 	1.1.33 	
      “Expiry Date” has the meaning attributed thereto
      in Section 2.2(k)(ii);

	 	 	 
	 	1.1.34 	
      “Expiry Time” has the meaning attributed thereto
      in Section 2.2(k)(ii);

	 	 	 
	 	1.1.35 	
      “Extraordinary Resolution” has the meaning
      attributed thereto in Section 13.12;

	 	 	 
	 	1.1.36 	
      “First Call Date” has the meaning attributed
      thereto in Section 2.2(c);

	 	 	 
	 	1.1.37 	
      “Freely Tradeable” means Common Shares which (i)
      are issuable without the necessity of filing a registration statement, a
      prospectus or any other similar offering document (other than such
      prospectus or similar offering document that has already been filed) under
      Applicable Securities Legislation and such issue does not constitute a
      sale requiring registration under the 1933 Act or a distribution (other
      than a distribution already qualified by prospectus or similar offering
      document) or constitutes an exempt sale or distribution under Applicable
      Securities Legislation; and (ii) can be traded by the holder thereof
      without any restriction under Applicable Securities Legislation and stock
      exchange rules, such as restricted periods or hold periods, except in the
      case of an affiliate sale (within the meaning of the 1933 Act) or a
      “control distribution” as defined under Applicable Securities
      Legislation;

	 	 	 
	 	1.1.38 	
      “Fully Registered Debentures” means Debentures
      registered as to both principal and interest;

	 	 	 
	 	1.1.39 	
      “Global Debenture” means a Debenture that is
      issued to and registered in the name of the Depositary, or its nominee,
      pursuant to Section 2.2(i) for purposes of being held by or on behalf of
      the Depositary as custodian for participants in the Depositary’s
      book-entry only registration system;

	 	 	 
	 	1.1.40 	
      “Governmental Entity” means: (a) any
      multinational, federal, provincial, state, regional, municipal, local or
      other government, governmental or public department, central bank, court,
      tribunal, arbitral body, commission, commissioner, board, bureau or
      agency, domestic or foreign; (b) any subdivision, agent, commission,
      commissioner, board, or authority of any of the foregoing; (c) any
      self-regulatory authority, including the TSXV; or (d) any
      quasigovernmental or private body exercising any regulatory, expropriation
      or taxing authority under or for the account of any of the
    foregoing;

	 	 	 
	 	1.1.41 	
      “IFRS” means International Financial Reporting
      Standards determined with reference to CPA Canada Handbooks, as amended
      from time to time;

- 5 - 

	 	1.1.42 	
      “Interest Obligation” means the obligation of the
      Corporation to pay interest on the Debentures, as and when the same
      becomes due;

	 	 	 
	 	1.1.43 	
      “Interest Payment Date” means respectively, June
      30 and December 31;

	 	 	 
	 	1.1.44 	
      “Internal Procedures” has the meaning ascribed
      thereto in Section 2.4;

	 	 	 
	 	1.1.45 	
      “Maturity Account” has the meaning attributed
      thereto in Section 2.9;

	 	 	 
	 	1.1.46 	
      “Maturity Date” means June 30, 2020;

	 	 	 
	 	1.1.47 	
      “Maturity Notice” has the meaning attributed
      thereto in Section 4.9(b);

	 	 	 
	 	1.1.48 	
      “Offer Price” has the meaning attributed thereto
      in Section 2.2(k)(i);

	 	 	 
	 	1.1.49 	
      “Officer’s Certificate” means a certificate of the
      Corporation signed by any one of the Directors or any one authorized
      officer of the Corporation, on behalf of the Corporation, in such
      capacity, and not in his or her personal capacity;

	 	 	 
	 	1.1.50 	
      “Person” includes any individual, firm,
      partnership, joint venture, association, trust, trustee, executor,
      administrator, legal personal representative, estate, group, corporation,
      unincorporated association or organization, Governmental Entity, syndicate
      or other entity, whether or not having legal status and whether acting in
      an individual, fiduciary or other capacity;

	 	 	 
	 	1.1.51 	
      “Redemption Date” has the meaning attributed
      thereto in Section 4.3;

	 	 	 
	 	1.1.52 	
      “Redemption Notice” has the meaning attributed
      thereto in Section 4.3;

	 	 	 
	 	1.1.53 	
      “Redemption Price” means, in respect of the
      Debentures, the amount, excluding interest, payable on the Redemption Date
      fixed for said Debentures, which amount may be payable by the issuance of
      Freely Tradeable Common Shares as provided for in Section 4.6;

	 	 	 
	 	1.1.54 	
      “Second Call Date” has the meaning attributed
      thereto in Section 2.2(c);

	 	 	 
	 	1.1.55 	
      “Senior Indebtedness” means the principal, premium
      (if any), interest (if any) or any other amounts payable thereunder (if
      any) on:

	 	(i) 	
      all indebtedness, liabilities and obligations of the
      Corporation (other than the Debentures), whether outstanding on the date
      of this Indenture or thereafter created, incurred, assumed or guaranteed
      in the normal course or in connection with the acquisition by the
      Corporation of any businesses, properties or other assets or for monies
      borrowed or raised by whatever means (including, without limitation, by
      means of commercial paper, bankers’ acceptances, letters of credit, debt
      instruments, revolving credit facilities, bank debt and financial leases,
      and any liability evidenced by bonds, debentures, notes or similar
      instruments) by the Corporation or others including, without limitation,
      any Subsidiary of the Corporation for payment of which the Corporation is responsible or liable,
whether absolutely or contingently; and 

	 	 	
       
	 	(ii) 	
      renewals, extensions, restructurings, refinancings and
        refundings of any such indebtedness, liabilities or
        obligations.

- 6 - 

	 	 	
unless in each case it is provided by
the terms of the instrument creating or evidencing such indebtedness,
liabilities or obligations that such indebtedness, liabilities or obligations
are pari passu with or subordinate in right of payment to Debentures that
by their terms are subordinated; 

    
	 	 	
       
	 	1.1.56 	
      “Shareholders” means holders of Common Shares and
      “Shareholder” means any one of them;

	 	 	 
	 	1.1.57 	
      “Subsidiary” means, with respect to any Person,
      (a) any corporation, association or other business entity (other than a
      partnership, joint venture or limited liability company) of which 50% or
      more of the total voting securities entitled (without regard to the
      occurrence of any contingency) to vote in the election of directors,
      managers or trustees thereof is at the time of determination owned or
      controlled, directly or indirectly, by such Person or one or more of the
      other Subsidiaries of that Person or a combination thereof and (b) any
      partnership, joint venture or limited liability company of which 50% or
      more of the capital accounts, distribution rights, total equity and voting
      interests or general and limited partnership interests, as applicable, are
      owned or controlled, directly or indirectly, by such Person or one or more
      of the other Subsidiaries of that Person or a combination thereof, whether
      in the form of membership, general, special or limited partnership
      interests or otherwise and such Person owns or controls, directly or
      indirectly, 50% or more of the total equity and voting rights of the
      general partner of such entity;

	 	 	 
	 	1.1.58 	
      “Successor” has the meaning attributed thereto in
      Section 11.1;

	 	 	 
	 	1.1.59 	
      “Tax Act” means the Income Tax Act
      (Canada), and the regulations thereunder, as amended;

	 	 	 
	 	1.1.60 	
      “trading day” means, with respect to the TSXV or
      other market for securities on which the Debentures are listed in
      Montréal, Québec or Toronto, Ontario, any day on which such exchange or
      market is open for trading or quotation;

	 	 	 
	 	1.1.61 	
      “TSXV” means the TSX Venture Exchange Inc. or its
      successor or successors;

	 	 	 
	 	1.1.62 	
      “United States” means the United States of
      America, its territories and possessions, any state of the United States
      and the District of Columbia;

	 	 	 
	 	1.1.63 	
      “Withholding Taxes” has the meaning attributed
      thereto in Section 2.11(a); and

	 	 	 
	 	1.1.64 	
      “Written Direction of the Corporation” means an
      instrument in writing signed by any one authorized Director or officer of
      the Corporation.

- 7 - 

	1.2 	
      Meaning of “Outstanding”

Debentures certified and delivered by the Debenture Trustee
hereunder are deemed to be outstanding until it is cancelled, converted,
redeemed or delivered to the Debenture Trustee for cancellation, conversion or
redemption and monies, Common Shares and/or other property, as the case may be,
for the payment thereof will have been set aside under Article 9, provided that:

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

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

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

	 	(i) 	
      for the purpose of determining whether the Debenture
      Trustee shall be protected in relying on any such vote, consent,
      acquisition or other instrument or action, or on the holders of Debentures
      present or represented at any meeting of Debentureholders, only the
      Debentures which the Debenture 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 Corporation shall not be so disregarded if the pledgee
      shall establish to the satisfaction of the Debenture Trustee the pledgee’s
      right to vote such Debentures, sign consents, requisitions or other
      instruments or take such other actions in his or her discretion free from
      the control of the Corporation or a Subsidiary of the
  Corporation.

	1.3 	
      Interpretation

In this Indenture: 

	 	(a) 	
      words importing the singular number or masculine gender
      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 or Sections refer, unless
      otherwise specified, to sections, subsections or clauses of this
      Indenture; and

- 8 - 

	 	(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.

	1.4 	
      Headings, etc.

The division of this Indenture into Articles and Sections, the
provision of a table of contents and the insertion of headings are for
convenience of reference only and will not affect the construction or
interpretation of this Indenture. 

	1.5 	
      Day Not a Business Day

In the event that any day on or before which any action
required to be taken hereunder is not a Business Day, then such action will be
taken on or before the requisite time on the next succeeding day that is a
Business Day. 

	1.6 	
      Applicable Law

This Indenture and the Debentures will be governed by and
construed in accordance with the laws of the Province of Québec and the federal
laws of Canada applicable therein. For the purpose of all legal proceedings,
this Indenture will be deemed to have been performed in the Province of Québec
and the courts of the Province of Québec will have jurisdiction to entertain any
action arising under this Agreement. The Corporation attorns to the jurisdiction
of the courts of Province of Québec. 

	1.7 	
      Conflict

In the event of a conflict or inconsistency between a provision
in the body of this Indenture and in the Debentures issued hereunder, the
provision in the body of this Indenture will prevail to the extent of the
inconsistency. 

	1.8 	
      Currency

All dollar amounts expressed in this Indenture and in the
Debentures are in lawful money of Canada and all payments required to be made
hereunder and thereunder will be made in Canadian dollars. 

	1.9 	
      Severability

Each of the provisions in this Indenture is distinct and
severable and a declaration of invalidity or unenforceability of any such
provision or part thereof by a court of competent jurisdiction will not affect
the validity or enforceability of any of the other provisions hereof. 

	1.10 	
      Successors and Assigns

All covenants and agreements in this Indenture by the
Corporation bind its successors and permitted assigns, whether expressed or not.

	1.11 	
      Benefits of Indenture

Nothing in this Indenture or in the Debentures, express or
implied, gives to any Person, other than the parties hereto and their successors
hereunder, any paying agent, the holders of Debentures, the Directors and the holders of Common Shares, any
benefit or any legal or equitable right, remedy or claim under this Indenture.

- 9 - 

	1.12 	
Schedules

The following Schedules form part of this Indenture: 

Schedule A — FORM OF DEBENTURE 

Schedule B — FORM OF REDEMPTION NOTICE

Schedule C — FORM OF MATURITY NOTICE

Schedule D — FORM OF COMMON SHARE
INTEREST PAYMENT ELECTION NOTICE 

Schedule E — FORM OF NOTICE OF
CONVERSION 

	ARTICLE 2 
	THE DEBENTURES 

	2.1 	
      Limit of Debentures

The Debentures authorized to be issued hereunder shall be
limited to no more than $10,000,000 aggregate principal amount and shall be
designated as “8,00% Convertible Unsecured Subordinated Debts due [June 30,
2020]”. 

The Debenture Trustee has been appointed as transfer agent and
registrar of the Debentures. 

	2.2 	
      Terms of Debentures

	 	(a) 	
      Maturity Date. The Debentures will mature on June
      30, 2020.

	 	 	 
	 	(b) 	
      Interest. The Debentures will bear interest from,
      and including, the date of issue at the rate of 8.00% per annum, payable
      in equal semi-annual payments in arrears on June 30 and December 31 of
      each year, the first such payment falling due on December 31, 2017 and the
      last such payment falling due on June 30, 2020, 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 semi-annually. The first
      interest payment will include interest accrued from and including •, 2017
      to but excluding December 31, 2017 and will be in an amount equal to $•
      per $1,000 principal amount of the Debentures.

	 	 	 
	 	(c) 	
      Redemption. The Debentures are redeemable in
      accordance with the terms of Article 4, provided that the Debentures may
      not be redeemed by the Corporation prior to June 30, 2018 (the “First
      Call Date”), except in the event of the satisfaction of certain
      conditions after a Change of Control has occurred as provided herein. On
      or after the First Call Date, but prior to June 30, 2019 (the “Second
      Call Date”), the Debentures may be redeemed at the Corporation’s sole
      option, in whole or in part, from time to time on notice as provided for
      in Section 4.3 at a Redemption Price equal to the principal amount of
      the Debentures; provided that the Current Market Price on the date
on which such notice of redemption is given is not less than 125% of the
Conversion Price and the Corporation will have provided to the Debenture Trustee
an Officer’s Certificate confirming such Current Market Price. In addition
thereto, at the time of redemption, the Corporation will pay to the holder
accrued and unpaid interest up to but not including the Redemption Date. On or
after the Second Call Date and prior to the Maturity Date, the Debentures may be
redeemed at the Corporation’s sole option, in whole or in part, from time to
time on notice as provided for in Section 4.3, at a Redemption Price equal to
the principal amount of the Debentures, irrespective of the Current Market
Price. In addition thereto, at the time of redemption, the Corporation will pay
to the holder accrued and unpaid interest up to but not including the Redemption
Date. The Redemption Notice for the Debentures will be substantially in the form
of Schedule B. 

- 10 - 

	 	(d) 	
      Priority. The Debentures will be subordinated to
      the Senior Indebtedness of the Corporation in accordance with the
      provisions of Article 5.

	 	 	 
	 	(e) 	
      Conversion. Upon and subject to the provisions and
      conditions of Article 6, the holder of each Debenture will have the right
      at such holder’s option, prior to the close of business on the earlier of
      the Maturity Date and, if called for redemption, the Redemption Date of
      the Debentures by notice to the holders of Debentures in accordance with
      Sections 2.2(c) and 4.3 (the earlier of which will be the “Maturity Date”
      for the purposes of Article 6 in respect of the Debentures), to convert
      any part, which is $1,000 or an integral multiple thereof, of the
      principal amount of such Debenture into Common Shares at the Conversion
      Price in effect on the Date of Conversion. Notwithstanding the foregoing,
      no Debenture may be converted during the last five Business Days preceding
      an Interest Payment Date.

	 	 	 
	 	(f) 	
      Conversion Price. The Conversion Price in effect
      on the date hereof for each Common Share to be issued upon the conversion
      of Debentures will be equal to $1.35 such that approximately 740 Common
      Shares will be issued for each $1,000 principal amount of Debentures so
      converted, subject to the terms of Section 6.4. The Conversion Price is
      subject to adjustment pursuant to the provisions of Section 6.4.
      Debentureholders converting their Debentures will receive accrued and
      unpaid interest from, and including, the last Interest Payment Date prior
      to the Date of Conversion (or the date of issue if converting prior to the
      first Interest Payment Date) to, but excluding, the Date of Conversion.
      Notwithstanding the foregoing, no Debenture may be converted on an
      Interest Payment Date or the Maturity Date, or during the 5 Business Days
      preceding either event.

	 	 	 
	 	(g) 	
      Payment in Common Shares. On redemption or on
      maturity of the Debentures, the Corporation may, at its sole option and
      subject to the provisions of Sections 4.6 and 4.9, as applicable, and
      subject to any applicable regulatory approvals, elect to satisfy its
      obligation to pay all or a portion of the aggregate principal amount of
      the Debentures by issuing and delivering Freely Tradeable Common Shares to
      such holders of Debentures. If the Corporation elects to exercise such
      option, it will provide details in the Redemption Notice or deliver a
      maturity notice (the “Maturity Notice”) to the holders of the
      Debentures substantially in the form of Schedule C. Interest accrued and
      unpaid on the Debentures to but not including the Redemption Date or the
Maturity Date will be paid in cash, subject to Section 2.2(j) . 

- 11 - 

	 	(h) 	
      Form of Debentures. The Debentures will be issued
      in denominations of $1,000 and integral multiples of $1,000, may be issued
      in certificated or uncertificated form and will be dated as of the date of
      this Indenture. Each Debenture certificate will be issued in substantially
      the form set out in Schedule A with such insertions, omissions,
      substitutions or other variations as 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
      the 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 Director or officer of the
      Corporation executing such Debenture in accordance with Section 2.3, as
      conclusively evidenced by his or her execution of an Debenture. Each
      Debenture will also bear such distinguishing letters and numbers as the
      Debenture Trustee approves. Notwithstanding the foregoing, an Debenture
      may be in such other form or forms as may, from time to time, be 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.

	 	 	 
	 	(i) 	
      Global Debentures. The Debentures will be issued
      as Global Debentures. The Depositary for the Debentures will be CDS
      Clearing and Depositary Services Inc. The Global Debentures will be
      registered in the name of CDS & Co. (or any nominee of the
      Depositary). No Beneficial Holder will receive definitive certificates
      representing their interest in Debentures except as provided in Section
      3.2. A Global Debenture may be exchanged for Debentures in registered form
      that are not Global Debentures, or transferred to and registered in the
      name of a person other than the Depositary for such Global Debentures or a
      nominee thereof as provided in Section 3.2. The Global Debentures shall
      bear the following legends:

“This Debenture is a Global Debenture
within the meaning of the Indenture herein referred to and is registered in the
name of a Depository or a nominee thereof. This Debenture may not be transferred
to or exchanged for Debentures registered in the name of any Person other than
the Depository or a nominee thereof and no such transfer may be registered
except in the limited circumstances described in the Indenture. Every Debenture
authenticated and delivered upon registration of, transfer of, or in exchange
for, or in lieu of, this Debenture shall be a Global Debenture subject to the
foregoing, except in such limited circumstances described in the Indenture. 

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

- 12 - 

	 	(j) 	
      Interest Payment Election. Subject to the
      provisions and conditions of Article 10, the Corporation may elect, from
      time to time, to satisfy all or any part of its Interest Obligation on the
      Debentures on any Interest Payment Date by issuing and delivering Freely
      Tradeable Common Shares to such holders of Debentures. If the Corporation
      elects to exercise such option, it will deliver a Common Share Interest
      Payment Election Notice to the holders of the Debentures substantially in
      the form of Schedule D.

	 	 	 
	 	(k) 	
      Change of Control. Upon the occurrence of a Change
      of Control and subject to the provisions and conditions of this Section
      2.2(k), the Corporation will be obligated to offer to purchase all
      Debentures then outstanding. The terms and conditions of such obligation
      are set forth below:

	 	(i) 	
      Within 30 days following the occurrence of a Change of
      Control, the Corporation will deliver to the Debenture Trustee a notice in
      writing 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 together with an offer in
      writing (the “Debenture Offer”) to purchase all of the Debentures
      then outstanding from the holders thereof at a price per Debenture equal
      to 101% of the principal amount thereof together with accrued and unpaid
      interest thereon up to but excluding the Change of Control Purchase Date
      (as defined below) (the “Offer Price”). The Debenture Trustee will
      promptly, but no later than three Business Days thereafter, deliver, by
      prepaid mail a notice of the Change of Control (in a form prepared by the
      Corporation) together with the Debenture Offer to the holders of all
      Debentures then outstanding, at their addresses appearing in the registers
      of holders of Debentures maintained by the Debenture Trustee.

	 	 	 
	 	(ii) 	
      The Debenture Offer will specify the date (the “Expiry
      Date”) and time (the “Expiry Time”) on which the Debenture
      Offer expires which date and time will not, unless otherwise required by
      Applicable Securities Legislation, be earlier than the close of business
      on the 35th day and not later than the close of business on the
      60th day following the date on which such Debenture Offer is
      delivered or mailed by or on behalf of the Debenture Trustee as provided
      above.

	 	 	 
	 	(iii) 	
      The Debenture Offer will specify that the Debenture Offer
      may be accepted by the holders of Debentures by tendering the Debentures
      so held by them to the Debenture Trustee at its principal offices in
      Toronto, Ontario at or before the Expiry Time together with an acceptance
      notice (the “Acceptance Notice”) in form and substance
acceptable to the Debenture Trustee. 

- 13 - 

	 	(iv) 	
      The Debenture Offer will state that holders of Debentures
      may accept the Debenture Offer in respect of all or a portion (in a
      minimum amount of $1,000 principal amount and multiples thereof) of their
      Debentures.

	 	 	 
	 	(v) 	
      The Debenture Offer will specify a date (the “Change
      of Control Purchase Date”) no later than the third Business Day
      following the Expiry Date on which the Corporation will take up and pay
      for all Debentures duly tendered in acceptance of the Debenture
    Offer.

	 	 	 
	 	(vi) 	
      The Corporation will, on or before 10:00 a.m. (Montréal
      time), on the Business Day immediately prior to the Change of Control
      Purchase Date pay to the Debenture Trustee by wire transfer or such other
      means as may be acceptable to the Debenture Trustee, an amount of money
      sufficient to pay the aggregate Offer Price in respect of all Debentures
      duly tendered to the Debenture Offer (less applicable Withholding Taxes,
      if any). The Debenture Trustee, on behalf of the Corporation, will pay the
      Offer Price to the holders of Debentures in the respective amounts to
      which they are entitled in accordance with the Debenture Offer as
      aforesaid.

	 	 	 
	 	(vii) 	
      If 90% or more of the aggregate principal amount of
      Debentures issued under the Indenture outstanding on the date the
      Corporation provides notice of the Change of Control have been tendered to
      the Corporation pursuant to the Debenture Offer, the Corporation will have
      the right (the “90% Redemption Right”), but not the obligation,
      upon written notice (the “90% Redemption Right Notice”) provided to
      the Debenture Trustee within 10 days following the Expiry Date, to elect
      to redeem all the Debentures remaining outstanding at the Offer Price and
      on the other terms and conditions provided herein. Upon receipt of such
      notice by the Debenture Trustee, the Debenture Trustee will promptly
      provide written notice (in a form prepared by the Corporation) to each
      holder of outstanding Debentures (other than those that have accepted the
      Debenture Offer) that:

	 	(A) 	
      the Corporation has exercised the 90% Redemption Right
      and is purchasing all outstanding Debentures effective as at the Change of
      Control Purchase Date at the Offer Price;

	 	 	 
	 	(B) 	
      such holder will surrender its Debentures to the
      Debenture Trustee within 30 days after the sending of such notice;
    and

	 	 	 
	 	(C) 	
      the rights of such holder under the terms of the
      Debentures and this Indenture will cease to be effective as of the Change
      of Control Purchase Date provided the Corporation has, on or before the
      date on which the Corporation delivers the 90% Redemption Notice to the
      Debenture Trustee, paid the aggregate Offer Price to, or to the order of,
      the Debenture Trustee and thereafter such holder’s Debentures will not be
      considered to be outstanding and such holder will not have any rights hereunder except to
receive such Offer Price to which such holder is entitled upon surrender and
delivery of such holder’s Debentures in accordance with the Indenture. 

- 14 - 

	 	(viii) 	
      The Corporation will, on or before 10:00 a.m. (Montréal
      time), on the Business Day immediately prior to the date on which the
      Corporation delivers the 90% Redemption Right Notice, pay to the Debenture
      Trustee by wire transfer or such other means as may be acceptable to the
      Debenture Trustee, an amount of money sufficient to pay the aggregate
      Offer Price in respect of all Debentures to be redeemed pursuant to the
      90% Redemption Right (less applicable Withholding Taxes, if any). The
      Debenture Trustee, on behalf of the Corporation, will pay the Offer Price
      to the holders of Debentures in the respective amounts to which they are
      entitled in accordance with the exercise of the 90% Redemption Right as
      aforesaid upon surrender and delivery of such holders’
  Debentures.

	 	 	 
	 	(ix) 	
      The Debentures in respect of which the Corporation has
      made payment to the Debenture Trustee in accordance with the terms of this
      Section 2.2(k) (or the portion thereof tendered in acceptance of the
      Debenture Offer) will thereafter no longer be considered to be outstanding
      under this Indenture. The Corporation will also deposit with the Debenture
      Trustee a sum of money sufficient to pay any charges or expenses which may
      be incurred by the Debenture Trustee in connection with the Debenture
      Offer and the exercise of the 90% Redemption Right if applicable. All
      Debentures in respect of which payment of the Offer Price has been so made
      will be cancelled by the Debenture Trustee.

	 	 	 
	 	(x) 	
      In the event that only a portion of the principal amount
      of a Debenture is tendered by a holder thereof in acceptance of the
      Debenture Offer, the Corporation shall, as applicable, execute and deliver
      to the Debenture Trustee and the Debenture Trustee shall certify and
      deliver to the holder, as applicable, without charge to such holder, a
      certificate representing the principal amount of the Debenture not so
      tendered in acceptance of the Debenture Offer, or in the case of an
      uncertificated Debenture, update the register in accordance with its
      Internal Procedures.

	 	(l) 	
      Listing. The Corporation will use commercially
      reasonable efforts to maintain the listing and posting for trading of the
      Debentures on the TSXV or such other exchange on which the Common Shares
      are listed and posted for trading, and to maintain the Corporation’s
      status as a “reporting issuer not in default” under Applicable Securities
      Legislation and to remain subject to, and in compliance with, reporting
      obligations under either Section 13 or Section 15(d) of the United
      States Securities Exchange Act of 1934, as amended; provided that the
      foregoing covenant shall not prevent or restrict the Corporation from
      carrying out a transaction to which Article 11 would apply if carried out
      in compliance with Article 11, respectively, even if as a result of such
      transaction the Common Shares or the Debentures, as the case may be, cease
      to be listed on the TSXV or on another stock exchange recognized by
      relevant securities regulatory authorities or the Corporation ceases to be
      a “reporting issuer”.

- 15 - 

	 	(m) 	
      Documents to Debenture Trustee. The Debenture
      Trustee will be provided with the documents and instruments referred to
      below prior to the issuance of any Debentures:

		− 	
      a Written Direction of the Corporation requesting
      certification and delivery of such Debentures and setting forth delivery
      instructions; 

	 	  	
       

		− 	
      an opinion of Counsel, in form and substance satisfactory
      to the Debenture Trustee, acting reasonably, to the effect that all
      requirements imposed by the Indenture or by law in connection with the
      proposed issue of Debentures have been complied with, subject to the
      delivery of certain documents or instruments specified in such opinion;
      and 

	 	  	
       

		− 	
      an Officer’s Certificate certifying that the Corporation
      is not in default under this Indenture, that the terms and conditions for
      the certification and delivery of Debentures (including those set forth in
      Section 15.5), have been complied with subject to the delivery of any
      documents or instruments specified in such Officer’s Certificate and that
      no Event of Default exists or will exist upon such certification and
      delivery. 

	2.3 	
      Execution of Debentures

All certificated Debentures will be signed (either manually or
by facsimile signature) by any one Director or any one authorized officer of the
Corporation, on behalf of the Corporation, holding office at the time of
signing. A facsimile signature upon a certificated Debenture is for all purposes
of this Indenture deemed to be the signature of the person whose signature it
purports to be. Notwithstanding that any person whose signature, either manual
or in facsimile, appears on a certificated Debenture as Director or an
authorized officer of the Corporation, on behalf of the Corporation, may no
longer hold such office at the date of the Debenture or at the date of the
certification and delivery thereof, such certificated Debenture will be valid
and binding upon the Corporation and entitled to the benefits of this Indenture.

	2.4 	
      Certification

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

The certificate of the Debenture Trustee signed on the
certificated Debentures, or interim Debentures hereinafter mentioned, or the
completion of its Internal Procedures as detailed below, will not be construed
as a representation or warranty by the Debenture 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 Debenture Trustee will in no
respect be liable or answerable for the use made of the Debentures or interim
Debentures or any of them or the proceeds thereof. The certificate of the
Debenture Trustee signed on the Debentures or interim Debentures, or the
completion of its Internal Procedures as detailed below, will, however, be a
representation and warranty by the Debenture Trustee that the Debentures or
interim Debentures have been duly certified by or on behalf of the
Debenture Trustee pursuant to the provisions of this Indenture. 

- 16 - 

A Debenture that is not evidenced by a certificate shall, for
all purposes of this Indenture, be deemed to have been duly certified by the
Debenture Trustee if the Debenture Trustee has, in respect to such Debenture,
completed all Internal Procedures such that the particulars of such Debenture
are entered in the register in respect of the Debentures. For this purpose,
“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 in
respect of the Debentures at any time, the minimum number of the Debenture
Trustee’s internal procedures customary at such time for the entry, change or deletion made to be complete under the
operating procedures followed at such time by the Debenture Trustee. 

	2.5 	
      Interim Debentures or
  Certificates

Pending the delivery of definitive Debentures of any series to
the Debenture Trustee, the Corporation may issue and the Debenture Trustee may
certify in lieu thereof interim Debentures in such forms and in such
denominations and signed in such manner as provided herein, entitling the
holders thereof to definitive Debentures of the series when the same are ready
for delivery; or the Corporation may execute and the Debenture Trustee may
certify a temporary Debenture for the whole principal amount of Debentures of
the series then authorized to be issued hereunder, as the Corporation and the
Debenture Trustee may approve, entitling the holders thereof to definitive
Debentures of the series when the same are ready for delivery; and, when so
issued and certified, such interim or temporary Debentures or interim
certificates will, for all purposes but without duplication, rank in respect of
this Indenture equally with Debentures duly issued hereunder and, pending the
exchange thereof for definitive Debentures, the holders of the interim or
temporary Debentures or interim certificates will be deemed without duplication
to be Debentureholders and entitled to the benefit of this Indenture to the same
extent and in the same manner as though the said exchange had actually been
made. Forthwith after the Corporation has delivered the definitive Debentures to
the Debenture Trustee, the Debenture Trustee will cancel such temporary
Debentures, if any, and will call in for exchange all interim Debentures or
certificates that were issued and forthwith after such exchange will cancel the
same. No charge will be made by the Corporation or the Debenture Trustee to the
holders of such interim or temporary Debentures or interim certificates for the
exchange thereof. 

	2.6 	
      Mutilation, Loss, Theft or
  Destruction

In case any of the Debenture certificates issued hereunder
become mutilated, lost, stolen or destroyed, the Corporation, in its discretion,
may issue, and thereupon the Debenture Trustee will certify and deliver, a new
Debenture upon surrender and cancellation of the mutilated Debenture, or in the
case of a lost, stolen or destroyed Debenture, in lieu of and in substitution
for the same, and the substituted Debenture will be in a form approved by the
Debenture Trustee and will 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 will furnish to the Corporation and to the Debenture
Trustee such evidence of the loss, theft or destruction of the Debenture as is
satisfactory to them in their discretion and will also furnish a surety bond and
an indemnity satisfactory to them in their discretion. The applicant will pay
all reasonable expenses incidental to the issuance of any substituted Debenture
payable to the Corporation and the Debenture Trustee.. 

- 17 - 

	2.7 	
      Concerning Interest

	 	(a) 	
      All Debentures issued hereunder, whether originally or
      upon transfer, exchange or in substitution for previously issued
      Debentures which are interest bearing, will, bear interest (i) from and
      including their issue date, or (ii) from and including the last Interest
      Payment Date in respect of which interest has become due and payable on
      the outstanding Debentures, whichever is later, to but excluding the next
      Interest Payment Date.

	 	 	 
	 	(b) 	
      Interest for any period of less than six months will be
      computed on the basis of a year of 360 days. Subject to Section 2.2(b) in
      respect of the method for calculating the amount of interest to be paid on
      the Debentures on the first Interest Payment Date in respect thereof,
      whenever interest is computed on the basis of a 365 or 366 day year, the
      yearly rate of interest to which the rate used in such calculation is
      equivalent is the rate so used multiplied by the actual number of days in
      the calendar year in which the same is to be ascertained and divided by
      365 or 366, as applicable. The rates of interest under this Agreement are
      nominal rates, and not effective rates or yields. The principle of deemed
      reinvestment of interest does not apply to any interest calculation under
      this Agreement.

	 	 	 
	 	(c) 	
      The Debenture Trustee shall be entitled to rely on the
      calculations of the Corporation with regards to the calculation of
      interest.

	2.8 	
      Debentures to Rank Pari
Passu

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

	2.9 	
      Payments of Amounts Due on
  Maturity

Except as may otherwise be provided herein or in any
supplemental indenture in respect of Debentures and subject to Section 4.9,
payments of amounts due upon maturity of the Debentures will be made in the
following manner. The Corporation will establish and maintain with the Debenture
Trustee an account created for such purposes (the “Maturity Account”) for
the Debentures. The Maturity Account will be maintained by and be subject to the
control of the Debenture Trustee for the purposes of this Indenture. On or
before 10:00 a.m. (Montréal time) on the Business Day immediately prior to each
maturity date for Debentures outstanding from time to time under this Indenture,
the Corporation will deliver by certified cheque or wire transfer to the
Debenture Trustee for deposit in the Maturity Account an amount calculated by
the Corporation to be sufficient to pay the cash amount payable in respect of
the Debentures (including the principal amount together with any accrued and
unpaid interest thereon less applicable Withholding Taxes, if any). The
Debenture Trustee, on behalf of the Corporation, will pay to each holder
entitled to receive payment the principal amount of and premium (if any) and
accrued and unpaid interest on the Debenture (less applicable Withholding Taxes,
if any), upon surrender of the Debenture at any branch of the Debenture Trustee
designated for such purpose from time to time by the Corporation and the
Debenture Trustee. The delivery of such funds to the Debenture Trustee for
deposit to the Maturity Account will satisfy and discharge the liability of the
Corporation for the Debentures to which the delivery of funds relates to the
extent of the amount delivered (plus the amount of any tax withheld or deducted
as aforesaid and remitted to the proper tax authority) 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. The Debenture Trustee shall make payments hereunder only to the extent
that it has been funded. 

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	2.10 	
      Payment of Interest

	 	(a) 	
      With respect to any interest due on Debentures (except at
      maturity, on conversion or on redemption, when interest may at the option
      of the Corporation be paid upon surrender of such Debenture) the
      Corporation, either directly or through the Debenture Trustee or any agent
      of the Debenture Trustee, will send or forward by prepaid ordinary mail,
      electronic transfer of funds, or other means acceptable to the parties,
      payment of such interest (less applicable Withholding Taxes, if any) to
      the order of the registered holder of such Debenture appearing on the
      registers maintained by the Debenture Trustee at the close of business on
      the fifth Business Day prior to the applicable Interest Payment Date and
      addressed to the holder at the holder’s last address appearing on the
      register, unless such holder otherwise directs. If payment is made by
      cheque, such cheque will be forwarded at least three Business Days prior
      to each date on which interest becomes due (and, if such cheques are to be
      mailed by the Debenture Trustee, the Corporation will deliver to the
      Debenture Trustee the amount required to be paid by the Debenture Trustee
      one Business Day prior to the date on which the Debenture Trustee is
      required to mail such cheques) and if payment is made by other means (such
      as electronic transfer of funds, provided the Debenture Trustee will
      receive confirmation of receipt of funds prior to being able to wire funds
      to holders), such payment will be made in a manner whereby the holder
      receives credit for such payment on the date such interest on such
      Debenture becomes due. The Corporation hereby authorizes and directs the
      Debenture Trustee to make payments via electronic transfer when it is so
      requested to do so by any holder. The mailing of such cheque or the making
      of such payment by other means will, to the extent of the sum represented
      thereby, plus the amount of any tax withheld or deducted as aforesaid and
      remitted to the proper tax authority, satisfies and discharges all
      liability for interest on such Debenture, unless in the case of payment by
      cheque, such cheque is not paid at par on presentation. In the event of
      non-receipt of any cheque for or other payment of interest by the person
      to whom it is so sent as aforesaid, the Corporation or the Debenture
      Trustee will issue to such person a replacement cheque or other payment
      for the amount upon being furnished with such evidence of non-receipt as
      it reasonably requires and upon being funded and indemnified to its
      satisfaction. Notwithstanding the foregoing, if the Corporation is
      prevented by circumstances beyond its control (including, without
      limitation, any interruption in mail service) from making payment of any
      interest due on each Debenture in the manner provided above, the
      Corporation may make payment of such interest or make such interest
      available for payment in any other manner acceptable to the Debenture
      Trustee with the same effect as though payment had been made in the manner
      provided above.

	 	 	 
	 	(b) 	
      Notwithstanding Section 2.10(a), for Debentures
      represented, in whole or in part, by a Global Debenture, all payments of
      interest on the Global Debenture will be made by electronic funds transfer
      to the Depositary or its nominee for
subsequent payment to Beneficial Holders of interests in that Global
Debenture, unless the Corporation and the Depositary otherwise agree. The
Corporation will pay such funds to the Debenture Trustee on or before 10:00 a.m.
(Montréal time) on the Business Day immediately prior to the applicable Interest
Payment Date. None of the Corporation, the Debenture Trustee or any agent of the
Debenture Trustee for any Debenture issued as a Global Debenture will be liable
or responsible to any person for any aspect of the records related to or
payments made on account of beneficial interests in any Global Debenture or for
maintaining, reviewing, or supervising any records relating to such beneficial
interests. 

- 19 - 

	2.11 	
      Withholding Tax

	 	(a) 	
      The Corporation, either directly or through the Debenture
      Trustee, is entitled to deduct and withhold an amount in respect of any
      applicable taxes or similar charges (including interest, penalties or
      similar amounts in respect thereof) (“Withholding Taxes”) imposed
      or levied by or on behalf of: (a) the Canadian government or of any
      Province or territory thereof or any authority or agency having power to
      tax, including pursuant to the Tax Act; or, (b) imposed or levied by or on
      behalf of the United States government or any state or subdivision thereof
      or any authority or agency having power to tax, including pursuant to the
      Code, from any payment (or portion thereof), including by the issuance of
      Common Shares, to be made on or in connection with the Debentures and,
      provided that the Corporation, or the Debenture Trustee, as the case may
      be, forthwith remits such Withholding Taxes to such government, authority
      or agency and files all required forms in respect thereof and promptly
      provides copies of such remittance and filing to the Debenture Trustee or
      the relevant Debentureholder, the amount of any such Withholding Taxes
      will be considered an amount paid in satisfaction of the Corporation’s
      obligations under the Debentures and there is no obligation on the
      Corporation to gross-up amounts paid or credited to a holder or any other
      Person in respect of such Withholdings Taxes.

	 	 	 
	 	(b) 	
      The Corporation will provide the Debenture Trustee or the
      relevant Debentureholder with copies of receipts or other communications
      relating to the remittance of such Withholding Taxes or the filing of such
      forms received from such government, authority or agency promptly after
      receipt thereof.

	 	 	 
	 	(c) 	
      To the extent that the amount so required to be deducted
      or withheld from any payment by the Corporation in respect of the
      Debentures exceeds the cash portion (if any) of the amounts otherwise
      payable in respect of the Debentures, the Corporation is hereby authorized
      to facilitate the sale or otherwise dispose of such portion of the
      consideration payable in respect of the Debentures (including any Common
      Shares required to be delivered by the Corporation) as is necessary to
      provide sufficient funds to the Corporation to enable it to comply with
      such Withholding Taxes requirement.

	 	 	 
	 	(d) 	
      The Corporation authorizes the Debenture Trustee to
      convert or cause to be converted through an agent or affiliate, the
      Canadian dollar cash payment on account of interest, premium, if any, or
      principal payable to a holder in respect of the Debentures, into United
      States dollars, at the rate of conversion available to the Debenture
      Trustee on the date the funds are converted, if the holder
  so provides a written direction to the Debenture Trustee
requesting its receipt in United States dollars. By providing the written
request, the holder will have acknowledged and agreed that the exchange rate for
one Canadian dollar expressed in United States dollars will be based on the
exchange rate available to the Debenture Trustee on the date the funds are
converted. Holders electing to have their payments paid in United States dollars
will have further acknowledged and agreed that any change to the currency
exchange rates of the United States or Canada will be at the sole risk of the
holder 

- 20 - 

 

	 	(e) 	
      At any time, the Debenture Trustee may request direction
      from the Corporation in writing as to any tax reporting requirements under
      this Indenture and the Debenture Trustee may rely on the tax reporting
      requirements provided by the Corporation. The Debenture Trustee shall at
      all times be indemnified and held harmless by the Corporation from and
      against any personal liabilities of the Debenture Trustee incurred in
      connection with the failure of the Corporation or its agents, to report,
      remit or withhold taxes. This indemnification shall survive the
      resignation or removal of the Debenture Trustee and the termination of
      this Indenture solely to the extent that such liabilities have been
      incurred in connection with taxation years occurring during the term of
      this Indenture.

	ARTICLE 3 
	REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP
  

	3.1 	
      Fully Registered
Debentures

	 	(a) 	
      With respect to Debentures issuable, in whole or in part,
      as Fully Registered Debentures, the Corporation will cause to be kept by
      and at the principal office of the Debenture Trustee in Toronto, Ontario
      and by the Debenture Trustee or such other registrar as the Corporation,
      with the approval of the Debenture Trustee may appoint at such other place
      or places, if any, as may be specified in the Debentures of such series or
      as the Corporation may designate with the approval of the Debenture
      Trustee, a register in which will 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 will be noted on the Debentures
      by the Debenture Trustee or other registrar unless a new Debenture is
      issued upon such transfer.

	 	 	 
	 	(b) 	
      No transfer of a Fully Registered Debenture will be valid
      unless made on such register referred to in Section 3.1(a) by the
      registered holder or such holder’s executors, administrators or other
      legal representatives or a mandatary duly appointed by an instrument in
      writing in form and execution satisfactory to the Debenture Trustee or
      other registrar upon surrender of the Debentures together with a duly
      executed form of transfer acceptable to the Debenture Trustee and upon
      compliance with such other reasonable requirements as the Debenture
      Trustee or other registrar may prescribe.

	3.2 	
      Global Debentures

	 	(a) 	
      With respect to Debentures issuable in whole or in part
      as one or more Global Debentures, the Corporation will cause to be kept by
      and at the principal offices of the Debenture Trustee in Toronto, Ontario
      and by the Debenture Trustee or such other registrar as the Corporation, with the approval of the
Debenture Trustee, may appoint at such other place or places, if any, as the
Corporation may designate with the approval of the Debenture Trustee, a register
in which will be entered the name and address of the holder of each such Global
Debenture (being the Depositary, or its nominee, for such Global Debenture) as
holder thereof and particulars of the Global Debenture held by it, and of all
transfers thereof. If any Debentures are at any time not Global Debentures, the
provisions of Section 3.1 will govern with respect to registrations and
transfers of such Debentures. 

- 21 - 

	 	(b) 	
      Beneficial interests in the Global Debentures will not be
      shown on the register or records maintained by the Debenture Trustee, but
      will be represented through book-entry accounts of participants on behalf
      of the beneficial owners of such Global Debenture. None of the
      Corporation, the Debenture Trustee or any other paying agent will have the
      responsibility or liability for any aspects of the records relating to or
      payments made by any Depositary or any participant on account of the
      beneficial interest in any Global Debenture.

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

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

	 	 	 
	 	(ii) 	
      Global Debentures may be transferred at any time after
      (i) the Corporation or the Depositary for such Global Debentures has
      notified the Debenture Trustee that the Depositary is unwilling or unable
      to continue as Depositary for such Global Debentures, or (ii) the
      Depositary ceases to be eligible to be a Depositary pursuant to the terms
      hereof, provided in each case that at the time of such transfer the
      Corporation has not appointed a successor Depositary for such Global
      Debentures;

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

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

- 22 - 

 

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

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

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

	 	(i) 	
      the Corporation and the Debenture Trustee may deal with
      the Depositary for all purposes (including paying interest on the
      Debentures) as the sole holder of Debentures and the authorized
      representative of the Beneficial Holders;

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

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

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

	 	(e) 	
      Whenever a notice or other communication is required to
      be provided to Debentureholders, unless and until definitive
      certificate(s) have been issued to Beneficial Holders pursuant to this
      Section 3.2, the Debenture Trustee will provide all such notices and
      communications to the Depositary and the Depositary will deliver such
      notices and communications to such Beneficial Holders in accordance with
      Applicable Securities Legislation. Upon the termination of the book-entry
      only registration system on the occurrence of one of the conditions
      specified in Section 3.2(c), the Depositary will notify all Depositary
      Participants, who will in turn notify all applicable Beneficial Holders of
      the availability of definitive Debenture certificates. Upon surrender by
      the Depositary of the Global Debentures and receipt of new registration
      instructions from the Depositary, the Debenture Trustee will deliver the
      definitive Debenture certificates for such Fully Registered Debentures to
      the holders thereof in accordance with the new registration instructions
      and, thereafter, the registration and transfer of such Fully Registered
      Debentures will be governed by Section 3.1 and the remaining Sections of
      this Article 3.

- 23 - 

	3.3 	
      Transferee Entitled to
  Registration

The transferee of a Debenture is entitled, after the
appropriate form of transfer is lodged with the Debenture 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 Corporation and the transferor or any previous holder of such Debenture,
save in respect of equities of which the Corporation is required to take notice
by statute or by order of a court of competent jurisdiction. 

	3.4 	
      No Notice of Trusts

Neither the Corporation nor the Debenture Trustee nor any
registrar will be bound to take notice of or see to the execution of any trust
whether express, implied or constructive, in respect of any Debenture, and may
transfer the same on the direction of the person registered as the holder
thereof, whether named as trustee or otherwise, as though that person were the
beneficial owner thereof. 

	3.5 	
      Registers Open for
Inspection

The registers referred to in Sections 3.1 and 3.2 will at all
reasonable times be open for inspection by the Corporation, the Debenture
Trustee or any Debentureholder. Every registrar, including the Debenture
Trustee, will from time to time when requested so to do by the Corporation or by
the Debenture Trustee, in writing, furnish the Corporation or the Debenture
Trustee, as the case may be, with a list of names and addresses of holders of
registered Debentures entered on the register kept by them and showing the
principal amount of the Debentures held by each such holder, provided the
Debenture Trustee is entitled to charge a reasonable fee to provide such a list.

	3.6 	
      Exchanges of
Debentures

	 	(a) 	
      Subject to Section 3.8, Debentures in any authorized form
      or denomination, other than Global Debentures, may be exchanged for
      Debentures in any other authorized form or denomination, of the same
      series and date of maturity, bearing the same interest rate and of the
      same aggregate principal amount as the Debentures so exchanged.

	 	 	 
	 	(b) 	
      In respect of exchanges of Debentures permitted by
      Section 3.6(a), Debentures of any series may be exchanged only at the
      principal offices of the Debenture Trustee in 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 Corporation with the approval of the Debenture Trustee.
      Any Debenture certificates tendered for exchange will be surrendered to
      the Debenture Trustee. The Corporation will execute and the Debenture
      Trustee will certify all Debenture certificates necessary to carry out
      exchanges as aforesaid. All Debenture certificates surrendered for
      exchange will 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 will be deemed to have been selected or called for redemption in the
      same manner.

- 24 - 

	3.7 	
      Closing of Registers

	 	(a) 	
      Neither the Corporation nor the Debenture Trustee nor any
      registrar will be required to:

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

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

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

	 	(b) 	
      Subject to any restriction herein provided, the
      Corporation with the approval of the Debenture Trustee may at any time
      close any register for any series of Debentures, other than those kept at
      the principal offices of the Debenture 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 will be deemed to be registered on such other register. Notice
      of such transfer will 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 Debenture Trustee or other registrar, except
as otherwise herein provided, may make a reasonable charge 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 Debenture Trustee and the
Corporation), and payment of such charges and reimbursement of the Debenture
Trustee or other registrar for any stamp taxes or governmental or other charges
required to be paid will 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 will be made to a
Debentureholder 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 of that
      series;

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

	 	 	 
	 	(c) 	
      for any exchange of any Debenture resulting from a
      partial redemption under Section 4.2.

	3.9 	
      Ownership of
Debentures

	 	(a) 	
      Unless otherwise required by law, the person in whose
      name any registered Debenture is registered will for all the purposes of
      this Indenture be and be deemed to be the owner thereof and payment of or on account of
the principal of such Debenture and interest thereon will be made to such
registered holder. 

- 25 - 

	 	(b) 	
      The registered holder for the time being of any
      registered Debenture will be entitled to the principal, premium, if any,
      and/or interest evidenced by such instruments, respectively, free from all
      equities or rights of set-off or counterclaim between the Corporation and
      the original or any intermediate holder thereof and all persons may act
      accordingly and the receipt of any such registered holder of any such
      principal, premium or interest will be a good discharge to the Corporation
      and/or the Debenture Trustee for the same and neither the Corporation nor
      the Debenture Trustee will be bound to inquire into the title of any such
      registered holder.

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

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

	3.10 	
      NCI Letter of Instructions

Notwithstanding anything to the contrary set out herein, all
physical Debenture certificates issued to the Depositary may be surrendered to
the Debenture Trustee for an electronic position on the register of
Debentureholders to be maintained by the Debenture Trustee in accordance with
Section 3.2. All Debentures maintained in such electronic position will be valid
and binding obligations of the Corporation, entitling the registered holders
thereof to the same benefits as those registered holders who hold Debentures in
physical form. This Indenture and the provisions contained herein will apply,
mutatis mutandis, to such Debentures held in such electronic position. It
is understood and agreed by the parties that, unless the Debenture Trustee is
otherwise not in a position to perform electronic conversions, in every instance
where Debentures held in an electronic position through the Depositary are to be
converted in whole or in part, such Debentures being converted shall not be
certificated, and it shall be sufficient for the Debenture Trustee to convert
such Debentures upon receiving either a conversion notice in the form of
Schedule E executed by the Depositary or an NCI Letter of Instructions in a form
agreed upon by the Debenture Trustee and the Depositary, or such other form that
they may require from time to time. 

	ARTICLE 4 
	REDEMPTION AND PURCHASE OF DEBENTURES
  

	4.1 	
      Applicability of
Article

	 	(a) 	
      Subject to compliance with Applicable Securities
      Legislation, including regulatory approval, the Corporation has the right
      at its option to redeem, either in whole at any time or in part from time
      to time before maturity, either by payment of
money, by issuance of Freely Tradeable Common Shares as provided in
Section 4.6 or any combination thereof, Debentures issued hereunder which by
their terms are made so redeemable (subject, however, to any applicable
restriction on the redemption of Debentures including as set out in Section
2.2(c)) at such rate or rates of premium, if any, and on such date or dates and
in accordance with such other provisions as determined at the time of issue of
such Debentures and as expressed in this Indenture, in the Debentures, or in a
supplemental indenture authorizing or providing for the issue thereof. 

- 26 - 

	 	(b) 	
      Subject to compliance with Applicable Securities
      Legislation, including regulatory approval, the Corporation also has the
      right at its option to repay, either in whole or in part, on maturity,
      either by payment of money in accordance with Section 2.9, by issuance of
      Freely Tradeable Common Shares as provided in Section 4.9 or any
      combination thereof, any Debentures issued hereunder which by their terms
      are made so repayable on maturity (subject, however, to any applicable
      restriction on the repayment of the principal amount of the Debentures) at
      such rate or rates of premium, if any, and on such date or dates and in
      accordance with such other provisions as determined at the time of issue
      of such Debenture and expressed in this Indenture, in the Debentures, or
      in a supplemental indenture authorizing or providing for the issue
      thereof.

	4.2 	
      Partial Redemption

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

- 27 - 

	4.3 	
      Notice of Redemption

Notice of redemption (the “Redemption Notice”) of the
Debentures will be given to the holders of the Debentures to be redeemed not
more than 60 days nor, subject to Section 4.6(b), less than 30 days prior to the
date fixed for redemption (the “Redemption Date”) in the manner provided
in Section 14.2. Every such notice will specify the aggregate principal amount
of Debentures called for redemption, the Redemption Date, the Redemption Price
and the places of payment and it will state that interest upon the principal
amount of Debentures called for redemption will cease to be payable from and
after the Redemption Date. In addition, if all the outstanding Debentures are to
be redeemed, the Redemption Notice will specify in the case of a Global
Debenture, that the redemption will take place in such manner as may be agreed
upon by the Depositary, the Debenture Trustee and the Corporation. 

	4.4 	
      Debentures Due on Redemption
  Dates

Notice having been given as provided in Section 4.3, the
Debentures so called for redemption will thereupon be and become due and payable
at the Redemption Price, together with accrued interest to but excluding the
Redemption Date, on the Redemption Date specified in such notice, in the same
manner and with the same effect as if it were the date of maturity specified in
such Debentures, anything therein or herein to the contrary notwithstanding; and
from and after such Redemption Date, if the monies necessary to redeem, or the
Common Shares to be issued to redeem, such Debentures will have been deposited
as provided in Section 4.5 and affidavits or other proof satisfactory to the
Debenture Trustee as to the publication and/or mailing of such notices will have
been lodged with it, interest upon the Debentures will cease. If any question
arises as to whether any notice has been given as above provided and such
deposit made, such question will be decided by the Debenture Trustee whose
decision will be final and binding upon all parties in interest. 

	4.5 	
      Deposit of Redemption Monies or Common
    Shares

	 	(a) 	
      Redemption of Debentures will be provided for by the
      Corporation paying and/or depositing with the Debenture Trustee or any
      paying agent to the order of the Debenture Trustee, on or before 10:00
      a.m. Montréal time on the Business Day immediately prior to the Redemption
      Date specified in such notice, such sums of money, by wire transfer or
      such other means as may be acceptable to the Debenture Trustee and/or
      arranging for the issuance of such certificates or electronic deposits
      representing such Common Shares, or both as the case may be, as may be
      sufficient to pay the Redemption Price of the Debentures so called for
      redemption, plus accrued and unpaid interest thereon up to but excluding
      the Redemption Date.

	 	 	 
	 	(b) 	
      The Corporation will also deposit with the Debenture
      Trustee a sum of money sufficient to pay any charges or expenses which may
      be incurred by the Debenture Trustee in connection with such redemption.
      Every such deposit is irrevocable. From the sums so deposited, or
      certificates so deposited, or both, the Debenture Trustee will pay or
      cause to be paid, or issue or cause to be issued, to the holders of such
      Debentures so called for redemption, upon surrender of such Debentures,
      the principal, premium (if any) and interest (if any) to which they are
      respectively entitled on redemption (less applicable Withholding Taxes, if
      any).

- 28 - 

	4.6 	
      Right to Repay Redemption Price in Common
      Shares

	 	(a) 	
      Subject to the other provisions of this Section 4.6 and
      applicable regulatory approval, the Corporation may, at its option, in
      exchange for or in lieu of paying the Redemption Price in money, elect to
      satisfy its obligation to pay all or any portion of the Redemption Price
      by issuing and delivering to holders on the Redemption Date that number of
      Freely Tradeable Common Shares obtained by dividing the Redemption Price
      or an applicable portion thereof, to be satisfied by the issuance and
      delivery of Freely Tradeable Common Shares, by 95% of the Current Market
      Price on the Redemption Date (the “Common Share Redemption
      Right”),

	 	 	 
	 	(b) 	
      The Corporation will exercise the Common Share Redemption
      Right by so specifying in the Redemption Notice which will be delivered to
      the Debenture Trustee and the holders of Debentures not more than 60 days
      and not less than 30 days prior to the Redemption Date. The Redemption
      Notice will also specify the aggregate principal amount of Debentures in
      respect of which it is exercising the Common Share Redemption
  Right.

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

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

	 	 	 
	 	(ii) 	
      the listing of such additional Freely Tradeable Common
      Shares on each stock exchange on which the Common Shares are then
      listed;

	 	 	 
	 	(iii) 	
      the Corporation being a reporting issuer in good standing
      under Applicable Securities Legislation where the distribution of such
      Freely Tradeable Common Shares occurs;

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

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

	 	 	 
	 	(vi) 	
      the receipt by the Debenture Trustee of an opinion of
      Counsel to the effect that such Common Shares have been duly authorized
      and, when issued and delivered pursuant to the terms of this Indenture in
      payment of the Redemption Price, will be validly issued as fully paid and
      non-assessable, that conditions (i) and (ii) above have been satisfied and
      that, relying exclusively on certificates of good standing or lists of
      reporting issuers not in default issued by the relevant securities
      authorities, condition (iii) above is satisfied, except that the opinion
      in respect of condition (iii) need not be expressed with respect
to those provinces where such certificates or lists are not issued. 

- 29 - 

If the foregoing conditions are not satisfied prior to the
close of business on the Business Day preceding the Redemption Date, the
Corporation will pay the Redemption Price in cash in accordance with Section 4.5
unless the Debentureholders waive the conditions which are not satisfied by way
of Extraordinary Resolution. 

	 	(d) 	
      In the event that the Corporation duly exercises its
      Common Share Redemption Right, the Corporation will on or before 10:00
      a.m. (Montréal time) on the Business Day immediately prior to the
      Redemption Date, deliver to, or arrange through its transfer agent for
      Common Shares, for delivery for and on account of the holders, upon the
      due presentation and surrender of the Debentures to the Debenture Trustee,
      the Freely Tradeable Common Shares to which such holders are entitled.
      From the Common Shares so deposited in addition to amounts payable by the
      Debenture Trustee pursuant to Section 4.5, the Debenture Trustee will,
      upon the due presentation and surrender of the Debentures, pay or cause to
      be paid to the holders of such Debentures the Redemption Price of the
      Debentures called for redemption in the amounts to which they are
      respectively entitled on the Redemption Date plus accrued and unpaid
      interest thereon up to but excluding the Redemption Date (less applicable
      Withholding Taxes, if any) and deliver to such holders the Common Shares
      to which such holders are entitled.

	 	 	 
	 	(e) 	
      No fractional Common Shares will be delivered upon the
      exercise of the Common Share Redemption Right but, in lieu thereof, the
      Corporation will pay to the Debenture Trustee for the account of the
      holders, at the time contemplated in Section 4.5(a), the cash equivalent
      thereof determined on the basis of the Current Market Price of the Common
      Shares on the Redemption Date (less applicable Withholding Taxes, if
      any).

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

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

- 30 - 

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

	 	 	 
	 	(i) 	
      The Corporation will from time to time promptly pay, or
      cause to be paid, all taxes and charges which may be imposed by the laws
      of Canada or any province thereof (except income tax, Withholding Tax or
      security transfer tax, if any) which will be payable with respect to the
      issuance or delivery of Freely Tradeable Common Shares to holders upon
      exercise of the Common Share Redemption Right pursuant to the terms of the
      Debentures and of this Indenture.

	 	 	 
	 	(j) 	
      If the Corporation elects to satisfy its obligation to
      pay all or any portion of the Redemption Price by issuing Freely Tradeable
      Common Shares in accordance with this Section 4.6 and if the Redemption
      Price (or any portion thereof) to which a holder is entitled is subject to
      Withholding Taxes and the amount of the cash payment of the Redemption
      Price, if any, is insufficient to satisfy such Withholding Taxes, the
      Debenture Trustee, on the Written Direction of the Corporation but for the
      account of the holder, will sell, or cause to be sold through the
      investment banks, brokers or dealers specified by the Corporation, out of
      the Freely Tradeable Common Shares issued by the Corporation for the
      account of such holder for this purpose, such specified number of Freely
      Tradeable Common Shares that together with the cash payment of the
      Redemption Price, if any, is sufficient to yield net proceeds (after
      payment of all costs) to cover the amount of taxes required to be withheld
      or deducted, and will remit same on behalf of the Corporation to the
      proper tax authorities within the period of time prescribed for this
      purpose under applicable laws.

	 	 	 
	 	(k) 	
      Interest accrued and unpaid on the Debentures on the
      Redemption Date will be paid (less applicable Withholding Taxes, if any)
      to holders of Debentures, in cash, in the manner contemplated in Section
      4.5, subject to Article 10.

	4.7 	
      Failure to Surrender Debentures Called for
      Redemption

In case the holder of any Debenture called for redemption fails
on or before the Redemption Date to surrender such holder’s Debenture, or has
not within such time accepted payment of the redemption monies payable, or taken
delivery of certificates representing such Common Shares issuable in respect
thereof, or given such receipt therefor, if any, as the Debenture Trustee may
require, such redemption monies may be set aside in trust, or such certificates
may be held in trust without interest, either in the deposit department of the
Debenture Trustee or in a Canadian chartered bank, and such setting aside will
for all purposes be deemed a payment to the Debentureholder of the sum or Common
Shares so set aside and, to that extent, the Debenture will thereafter not be
considered as outstanding hereunder. The Debentureholder will have no other
right thereunder except to receive payment of the Redemption Price of such
Debenture plus any accrued but unpaid interest thereon to but excluding the
Redemption Date out of the monies so paid and deposited, or take delivery of the
certificates so deposited, or both, as the case may be, less applicable
Withholding Taxes, if any, upon surrender and delivery of such holder’s
Debenture. In the event that any money, or certificates for Common Shares,
required to be deposited hereunder with the Debenture Trustee or any depositary
or paying agent on account of principal, premium, if any, or interest, if any,
on Debentures issued hereunder will remain so deposited for a period of six years
from the Redemption Date, then, subject to any applicable law regarding
unclaimed property, such monies or certificates for Common Shares, together with
any accumulated interest thereon or any dividend or distribution paid thereon,
will at the end of such period be paid over or delivered over by the Debenture
Trustee or such depositary or paying agent to the Corporation on its demand, and
thereupon the Debenture Trustee will not be responsible to Debentureholders for
any amounts owing to them and subject to applicable law, thereafter the holder
of a Debenture in respect of which such money was so repaid to the Corporation
will have no rights in respect thereof except to obtain payment of the money or
Common Shares due from the Corporation.

- 31 - 

	4.8 	
      Purchase of Debentures by the
  Corporation

Unless otherwise specifically provided with respect to the
Debentures, the Corporation, if it is not at the time in default hereunder, may,
at any time and from time to time, purchase Debentures in the market (which
includes purchases from or through an investment dealer or a firm holding
membership on a recognized stock exchange) or by tender or by private contract,
at any price. All Debentures so purchased will be delivered to the Debenture
Trustee and cancelled and no Debentures will be issued in substitution therefor.
If, upon an invitation for tenders, more Debentures are tendered at the same
lowest price that the Corporation is prepared to accept, the Debentures to be
purchased by the Corporation will be selected by the Debenture Trustee on a
pro rata basis or in such other manner consented to by the TSXV or such
other exchange on which the Debentures may be listed and posted for trading
which the Debenture Trustee considers appropriate, from the Debentures tendered
by each tendering Debentureholder who tendered at such lowest price. For this
purpose the Debenture 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 will 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 only
a part is purchased, upon surrender of such Debenture for payment, will be
entitled to receive, without expense to such holder, one or more new Debentures
for the unpurchased part so surrendered, and the Debenture Trustee will certify
and deliver such new Debenture or Debentures upon receipt of the Debenture so
surrendered or, with respect to a Global Debenture, the Debenture Trustee will
make notations on the Global Debenture (or in the case of an uncertificated
Global Debenture, in accordance with the Debenture Trustee’s Internal
Procedures) of the principal amount thereof so purchased. 

	4.9 	
      Right to Repay Principal Amount in Common
      Shares

	 	(a) 	
      Subject to the other provisions of this Section 4.9 and
      applicable regulatory approval, the Corporation may, at its option, in
      exchange for or in lieu of paying all or any portion of the principal
      amount of the Debentures outstanding in money, elect to satisfy its
      obligation to repay all or any portion of the principal amount of the
      Debentures outstanding by issuing and delivering to holders on the
      Maturity Date, for each $1,000 due, that number of Freely Tradeable Common
      Shares obtained by dividing $1,000 by 95% of the Current Market Price of
      the Common Shares (the “Common Share Repayment Right”) on the
      Maturity Date.

	 	 	 
	 	(b) 	
      The Corporation will exercise the Common Share Repayment
      Right by so specifying in the Maturity Notice, which will be delivered to
      the Debenture Trustee and the holders of Debentures not more than 60 days
      and not less than 30 days prior to the Maturity
Date.

- 32 - 

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

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

	 	 	 
	 	(ii) 	
      the listing of such additional Freely Tradeable Common
      Shares on each stock exchange on which the Common Shares are then
      listed;

	 	 	 
	 	(iii) 	
      the Corporation being a reporting issuer in good standing
      under Applicable Securities Legislation where the distribution of such
      Freely Tradeable Common Shares occurs;

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

	 	 	 
	 	(v) 	
      the receipt by the Debenture Trustee of an Officer’s
      Certificate stating that conditions (i), (ii), (iii) and (iv) above have
      been satisfied and setting forth the number of Common Shares to be
      delivered for each $1,000 principal amount of Debentures and the Current
      Market Price of the Common Shares on the Maturity Date in accordance with
      the provisions of Section 4.9(a); and

	 	 	 
	 	(vi) 	
      the receipt by the Debenture Trustee of an opinion of
      Counsel to the effect that such Common Shares have been duly authorized
      and, when issued and delivered pursuant to the terms of this Indenture in
      payment of the principal amount of the Debentures outstanding will be
      validly issued as fully paid and non-assessable, that conditions (i) and
      (ii) above have been satisfied and that, relying exclusively on
      certificates of good standing or list of reporting issuers in default
      issued by the relevant securities authorities, condition (iii) above is
      satisfied, except that the opinion in respect of condition (iii) need not
      be expressed with respect to those provinces where such certificates or
      lists are not issued.

If the foregoing conditions are not
satisfied prior to the close of business on the Business Day preceding the
Maturity Date, the Corporation will pay the principal amount of the Debentures
outstanding in cash in accordance with Section 2.9, unless the Debentureholders
waive the conditions which are not satisfied by way of Extraordinary Resolution.

	 	(d) 	
      In the event that the Corporation duly exercises its
      Common Share Repayment Right, the Corporation will on or before 10:00 a.m.
      (Montréal time) on the Maturity Date, deliver to the Debenture Trustee or
      will arrange through its transfer agent for the Common Shares, for
      delivery to and on account of the holders, upon the due presentation and
      surrender of the Debentures, the Freely Tradeable Common Shares to which
      such holders are entitled. The Corporation will also deposit with the
      Debenture Trustee a sum of money sufficient to pay any charges or expenses
      which may be incurred by the Debenture Trustee in connection with the
      Common Share Repayment Right. Every such deposit will be irrevocable. From
      the Common Shares so deposited in addition to amounts payable by
the Debenture Trustee pursuant to Section 2.9, the Debenture Trustee will pay or
cause to be paid, to the holders of such Debentures upon surrender of such
Debentures, the principal amount of and premium (if any) on the Debentures to
which they are respectively entitled on maturity and deliver to such holders the
Common Shares to which such holders are entitled. The delivery of such Common
Shares to the Debenture Trustee will satisfy and discharge the liability of the
Corporation for the Debentures to which the delivery of Common Shares relates to
the extent of the amount delivered (plus the amount remitted to the proper tax
authority obtained from any Freely Tradeable Common Shares sold to pay
applicable taxes in accordance with Section 4.9(j)) 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 Common Shares so delivered, the Common Shares to which it is
entitled. 

- 33 - 

	 	(e) 	
      No fractional Common Shares will be delivered upon the
      exercise of the Common Share Repayment Right but, in lieu thereof, the
      Corporation will pay to the Debenture Trustee for the account of the
      holders, at the time contemplated in Section 2.9, the cash equivalent
      thereof determined on the basis of the Current Market Price of the Common
      Shares on the Maturity Date (less applicable Withholding Taxes, if
      any).

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

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

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

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

- 34 - 

	 	(j) 	
      If the Corporation elects to satisfy its obligation to
      pay all or any portion of the principal amount of Debentures due on
      maturity by issuing Freely Tradeable Common Shares in accordance with this
      Section 4.9 and if the principal amount (or any portion thereof) to which
      a holder is entitled is subject to Withholding Taxes and the amount of the
      cash payment of the principal amount due on maturity, if any, is
      insufficient to satisfy such Withholding Taxes, the Debenture Trustee, on
      the Written Direction of the Corporation but for the account of the holder
      (i) will sell, or cause to be sold, through the investment banks, brokers
      or dealers specified by the Corporation, out of the Freely Tradeable
      Common Shares issued by the Corporation for the account of such holder for
      this purpose, such number of Freely Tradeable Common Shares that together
      with the cash component of the principal amount due on maturity is
      sufficient to yield net proceeds (after payment of all costs) to cover the
      amount of taxes required to be withheld, and (ii) will remit such amount
      withheld on behalf of the Corporation to the proper tax authorities within
      the period of time prescribed for this purpose under applicable
    laws.

	 	 	 
	 	(k) 	
      Certificates representing Freely Tradeable Common Shares
      issued in respect of the Common Share Repayment Right may have imprinted
      or otherwise reproduced thereon such legend or legends or endorsements as
      may be required to comply with any law or with any rules or regulations
      pursuant thereto or with any rules or regulations of any securities
      exchange or securities regulatory authority or to conform to general
      usage.

	 	 	 
	 	(l) 	
      Subject to Article 10, interest accrued and unpaid on the
      Debentures on the Maturity Date will be paid (less applicable Withholding
      Taxes, if any) to holders of Debentures, in cash, in the manner
      contemplated in Section 2.10.

	4.10 	
      Cancellation of Debentures
  Redeemed

Subject to the provisions of Sections 4.2 and 4.8 as to
Debentures redeemed or purchased in part, all Debentures redeemed and paid under
this Article 4 will forthwith be delivered to the Debenture Trustee and
cancelled and no Debentures will be issued in substitution therefor. 

	ARTICLE 5 
	SUBORDINATION OF DEBENTURES

	5.1 	
      Applicability of Article

The indebtedness evidenced by the Debentures issued hereunder
which by their terms are subordinate, including the principal thereof and
interest thereon, will be subordinate 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 prior payment in full, of all Senior Indebtedness of the
Corporation and each holder of any Debenture by his acceptance thereof agrees to
and will be bound by the provisions of this Article 5. 

- 35 - 

	5.2 	
      Order of Payment

Upon any distribution of the assets of the Corporation on any
dissolution, winding-up, total liquidation or reorganization of the Corporation
(whether in bankruptcy, insolvency or receivership proceedings, or upon an
“assignment for the benefit of creditors” or any other marshalling of the assets
and liabilities of the Corporation, or otherwise) or any sale of all or
substantially all of the assets of the Corporation: 

	 	(a) 	
      all Senior Indebtedness will first be paid in full, or
      provision made for such payment, before any payment is made on account of
      the principal of or interest on the indebtedness evidenced by the
      Debentures; and

	 	 	 
	 	(b) 	
      any payment or distribution of assets of the Corporation,
      whether in cash, property or securities, to which the holders of the
      Debentures or the Debenture Trustee on behalf of such holders would be
      entitled except for the provisions of this Article 5, will 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.

	5.3 	
      Subrogation to Rights of Holders of Senior
      Indebtedness

Subject to the payment in full of all Senior Indebtedness, the
holders of the Debentures will be subrogated to the rights of the holders of
Senior Indebtedness to receive payments or distributions of assets of the
Corporation to the extent of the application thereto of such payments or other
assets which would have been received by the holders of the Debentures but for
the provisions hereof until the principal of and interest on the Debentures has
been 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, will, as between the
Corporation, its creditors other than the holders of Senior Indebtedness, and
the holders of Debentures, be deemed to be a payment by the Corporation to the
holders of the Senior Indebtedness or on account of the Senior Indebtedness, it
being understood that the provisions of this Article 5 are and are intended
solely for the purpose of defining the relative rights of the holders of the
Debentures, on the one hand, and the holders of Senior Indebtedness, on the
other hand. 

	5.4 	
      Obligation to Pay Not
Impaired

Nothing contained in this Article 5 or elsewhere in this
Indenture or in the Debentures is intended to impair, as between the
Corporation, its creditors other than the holders of Senior Indebtedness, and
the holders of the Debentures, the obligation of the Corporation, which is
absolute and unconditional, to pay to the holders of the Debentures the
principal and interest on the Debentures, as and when the same becomes due and
payable in accordance with their terms; or affect the relative rights of the
holders of the Debentures and creditors of the Corporation other than the
holders of the Senior Indebtedness; or will anything herein or therein prevent
the Debenture 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
in respect of cash, property or securities of the Corporation received upon the
exercise of any such remedy. 

- 36 - 

	5.5	No Payment if Senior Indebtedness in
      Default

	 	(a) 	
      Upon the maturity of any Senior Indebtedness by lapse of
      time, acceleration or otherwise, then, all principal of and interest on
      all such matured Senior Indebtedness will first be paid in full, or will
      first have been duly provided for, before any payment is made on account
      of principal of or interest on the Debentures.

	 	 	 
	 	(b) 	
      In case of default with respect to any Senior
      Indebtedness permitting the holders thereof to accelerate the maturity
      thereof, unless and until such default will have been cured or waived or
      ceased to exist, no payment (by purchase of Debentures or otherwise) will
      be made by the Corporation with respect to the principal of or interest on
      the Debentures and neither the Debenture Trustee nor the holders of
      Debentures will be entitled to demand, institute proceedings for the
      collection of, or receive any payment or benefit (including without
      limitation by set-off, combination of accounts, realization of security or
      otherwise in any manner whatsoever) on account of the Debentures after the
      happening of such a default (except as provided in Section 5.8), and
      unless and until such default has been cured or waived or has ceased to
      exist, such payments will be held in trust for the benefit of, and, if and
      when such Senior Indebtedness becomes due and payable, will be paid over
      to, the holders of the Senior Indebtedness or their representative or
      representatives or to the trustee or trustees under any indenture under
      which any instruments evidencing an amount of the Senior Indebtedness
      remaining unpaid until all such Senior Indebtedness has been paid in full,
      after giving effect to any concurrent payment or distribution to the
      holders of such Senior Indebtedness.

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

	5.6 	
      Payment on Debentures
Permitted

Nothing contained in this Article 5 or elsewhere in this
Indenture, or in any of the Debentures, will affect the obligation of the
Corporation to make, or prevent the Corporation from making, at any time except
during the pendency of any dissolution, winding up or liquidation of the
Corporation or reorganization proceedings specified in Section 5.2 affecting the
affairs of the Corporation, any payment of principal of or interest on the
Debentures, except that the Corporation will not make any such payment other
than as contemplated by this Article 5, if it is in default in payment of any
Senior Indebtedness permitting the holder thereof to accelerate the maturity
thereof. The fact that any such payment is prohibited by this Section 5.6 will
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, will prevent the conversion of the Debentures or
the application by the Debenture Trustee of any monies deposited with the
Debenture Trustee hereunder for the purpose, to the payment of or on account of
the principal of or interest on the Debentures. 

- 37 - 

	5.7 	
      Confirmation of
Subordination

Each holder of Debentures by its acceptance thereof authorizes
and directs the Debenture Trustee on its behalf to take such action, relying on
the advice of Counsel, as may be necessary or appropriate to effect the
subordination as provided in this Article 5 and appoints the Debenture Trustee
its attorney-in-fact for any and all such purposes. Upon request of the
Corporation, and upon being furnished an Officer’s Certificate stating that one
or more named persons are holders of Senior Indebtedness, or the representative
or representatives of such holders, or the trustee or trustees under which any
instrument evidencing such Senior Indebtedness may have been issued, and
specifying the amount and nature of such Senior Indebtedness, the Debenture
Trustee will enter into a written agreement or agreements with the Corporation
and the person or persons named in such Officer’s Certificate providing that
such person or persons are entitled to all the rights and benefits of this
Article 5 as the holder or holders, representative or representatives, or
trustee or trustees of the Senior Indebtedness specified in such Officer’s
Certificate and in such agreement. Such agreement will be conclusive evidence
that the indebtedness specified therein is Senior Indebtedness; however, nothing
herein will impair the rights of any holder of Senior Indebtedness who has not
entered into such an agreement. 

	5.8 	
      Knowledge of Debenture
Trustee

Notwithstanding the provisions of this Article 5, the Debenture
Trustee will not be charged with knowledge of the existence of any fact that
would prohibit the making of any payment of monies to or by the Debenture
Trustee, or the taking of any other action by the Debenture Trustee, unless and
until the Debenture Trustee has received written notice thereof from the
Corporation, any Debentureholder or any holder or representative of any class of
Senior Indebtedness or on its behalf. 

	5.9 	
      Debenture Trustee May Hold Senior
    Indebtedness

The Debenture 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 Debenture Trustee of any of its rights as such
holder. 

	5.10 	
      Rights of Holders of Senior Indebtedness Not
      Impaired

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

	5.11 	
      Altering the Senior
Indebtedness

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

- 38 - 

	5.12 	
      Additional Indebtedness

This Indenture does not restrict the Corporation or any
Subsidiary from incurring additional indebtedness, including indebtedness that
ranks senior to the Debentures, or mortgaging, pledging or charging its
properties to secure any indebtedness. 

	5.13 	
      Right of Debentureholder to Convert Not
      Impaired

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

	5.14 	
      Invalidated Payments

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

	ARTICLE 6 
	CONVERSION OF DEBENTURES 

	6.1 	
      Applicability of
Article

	 	(a) 	
      Debentures issued hereunder are convertible into Freely
      Tradeable Common Shares or other securities, at such conversion rate or
      rates, and on such date or dates and in accordance with such other
      provisions as have been determined at the time of their issuance, as same
      may be amended from time to time, in a supplemental indenture.

	 	 	 
	 	(b) 	
      Such right of conversion will extend only to the maximum
      number of whole Common Shares into which the aggregate principal amount of
      the Debenture or Debentures surrendered for conversion at any one time by
      the holder thereof may be converted. Fractional interests in Common Shares
      will be dealt with in the manner provided in Section
6.5.

	6.2 	
      Revival of Right to
Convert

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

- 39 - 

	6.3 	
      Manner of Exercise of Right to
  Convert

	 	(a) 	
      The holder of a Debenture desiring to convert such
      Debenture in whole or in part into Common Shares will surrender such
      Debenture to the Debenture Trustee at its principal office in Toronto,
      Ontario together with the conversion notice in the form attached hereto as
      Schedule E or any other written notice in a form satisfactory to the
      Debenture Trustee, in either case duly executed by the holder or his
      executors or administrators or other legal representatives or his or their
      attorney duly appointed by an instrument in writing in form and executed
      in a manner satisfactory to the Debenture Trustee, exercising his right to
      convert such Debenture in accordance with the provisions of this Article
      6; provided that with respect to a Global Debenture, the obligation to
      surrender a Debenture to the Debenture Trustee will be satisfied if the
      Debenture Trustee makes notation on the Global Debenture (or in the case
      of an uncertificated Global Debenture, in accordance with the Debenture
      Trustee’s Internal Procedures) of the principal amount thereof so
      converted and the Debenture Trustee is provided with all other
      documentation which it may reasonably request. Thereupon, the principal of
      the Debenture shall become due and payable to such Debentureholder and
      such principal amount shall be discharged and satisfied in full without
      any further action by the holder or the Corporation by the making of any
      cash payment required to be made under Section 6.5 and, as to the balance,
      by being applied as payment in full of the Conversion Price for the number
      of whole Common Shares into which such Debenture is convertible in
      accordance with the provisions of this Article 6. Upon such discharge and
      satisfaction, such Debentureholder or, subject to payment of all
      applicable stamp or security transfer taxes or other governmental charges
      and compliance with all reasonable requirements of the Debenture Trustee,
      his nominee(s) or assignee(s) will be entitled to be entered in the books
      of the Corporation as at the Business Day immediately after the Date of
      Conversion (or such later date as is specified in Section 6.3(b)) as the
      holder of the number of Common Shares into which such Debenture is
      convertible in accordance with the provisions of this Article 6 and, as
      soon as practicable thereafter, the Corporation will, as need be, deliver,
      or cause its transfer agent to deliver to such Debentureholder or, subject
      as aforesaid, his nominee(s) or assignee(s), a certificate or certificates
      for such Common Shares and make or cause to be made any payment of
      interest to which such holder is entitled in accordance with Section
      6.3(e) hereof.

	 	 	 
	 	(b) 	
      For the purposes of this Article 6, a Debenture will be
      deemed to be surrendered for conversion on the date on which it is so
      surrendered in accordance with the provisions of this Article 6 or, in the
      case of a Global Debenture, on the date on which the Debenture Trustee
      received notice of and all necessary documentation, provided the
      documentation is received in good order, 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
      Debenture Trustee at its office specified in Section 6.3(a); provided that
      if a Debenture is surrendered for conversion on a day on which the
      register of Debentures is closed, the Debentures will be deemed to be
      surrendered as at the date on which such register is next reopened (in
      each case, the “Date of Conversion”).

- 40 - 

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

	 	 	 
	 	(d) 	
      Upon a holder of any Debenture exercising the right of
      conversion in respect of only a part of the Debenture and surrendering
      such Debenture to the Debenture Trustee, in accordance with Section 6.3(a)
      the Debenture Trustee will cancel the same and will without charge
      forthwith certify and deliver to the holder a new Debenture or Debentures
      in an aggregate principal amount equal to the unconverted part of the
      principal amount of the Debenture so surrendered or, with respect to a
      Global Debenture, the Debenture Trustee will make notations on the Global
      Debenture of the principal amount thereof so converted.

	 	 	 
	 	(e) 	
      The holder of a Debenture surrendered for conversion in
      accordance with this Section 6.3 will be entitled to receive accrued and
      unpaid interest in respect thereof from the last Interest Payment Date
      prior to conversion (or the date of issue of the Debentures if there has
      not yet been an Interest Payment Date) to, but excluding, the Date of
      Conversion and the Common Shares issued upon such conversion will rank
      only in respect of dividends declared in favour of Shareholders of record
      on and after the Business Day immediately after the Date of Conversion or
      such later date as such holder becomes the holder of record of such Common
      Shares pursuant to Section 6.3(b), from which applicable date they will
      for all purposes be and be deemed to be issued and outstanding as fully
      paid and non-assessable Common Shares. Where the Depositary is the
      registered holder of the Debenture, the Debenture Trustee shall accept
      delivery of and act upon a Depositary letter of instruction in place of a
      conversion notice signed by the registered holder, containing all
      pertinent conversion information and accompanied by a panel for Debenture
      principal markdown by the Debenture Trustee, or such other documentation
      submitted by the Depositary which the Debenture Trustee may deem
      satisfactory to effect the conversion being requested.

	 	 	 
	 	(f) 	
      In the event of a conversion of Debentures into Freely
      Tradeable Common Shares where the holder is subject to Withholding Taxes,
      the Debenture Trustee, on the Written Direction of the Corporation but for
      the account of the holder, will sell, or cause to be sold through the
      investment banks, brokers or dealers selected by the Corporation, out of
      the specified amount of Freely Tradeable Common Shares issued by the
      Corporation for this purpose, such number of Freely Tradeable Common
      Shares that together with any cash payment in lieu of fractional Common
      Shares or interest accrued and payable on the Debentures then converted,
      if any, is sufficient to yield net proceeds (after payment of all costs)
      to cover the amount of taxes required to be withheld, and will remit such
      amount withheld on behalf of the Corporation to the proper tax authorities
      within the period of time prescribed for this purpose under applicable
      laws.

	 	 	 
	 	(g) 	
      Notwithstanding any other provision of this Article 6, no
      Debenture may be converted during the five Business Day preceding an
      Interest Payment Date or the Maturity Date.

- 41 - 

	6.4 	
      Adjustment of Conversion
Price

The Conversion Price in effect at any date will be subject to
adjustment from time to time as set forth below. 

	 	(a) 	
      If at any time prior to the Maturity Date the
      Corporation

	 	(i) 	
      subdivides or redivides the outstanding Common Shares
      into a greater number of Common Shares,

	 	 	 
	 	(ii) 	
      reduces, combines or consolidates the outstanding Common
      Shares into a smaller number of Common Shares, or

	 	 	 
	 	(iii) 	
      issues Common Shares or securities exchangeable or
      convertible into Common Shares to the holders of all or substantially all
      of the outstanding Common Shares by way of a dividend or distribution or
      otherwise (other than the issue of Common Shares to holders of Common
      Shares who have elected to receive dividend or distributions in the form
      of Common Shares in lieu of cash dividends or distributions paid in the
      ordinary course on the Common Shares);

then the Conversion Price in effect on
the effective date of such subdivision, redivision, reduction, combination or
consolidation or on the record date for such issue of Common Shares by way of a
dividend or distribution or otherwise, as the case may be, will, in the case of
any of the events referred to in (i) and (iii) above be decreased in proportion
to the number of outstanding Common Shares resulting from such subdivision,
redivision, or issue by way of dividend or distribution or otherwise; or will,
in the case of any of the events referred to in (ii) above, be increased in
proportion to the number of outstanding Common Shares resulting from such
reduction, combination or consolidation. Such adjustment will be made
successively whenever any event referred to in this Section 6.4(a) occurs. Any
such issue of Common Shares by way of a dividend or distribution will be deemed
to have been made on the record date for the dividend or distribution for the
purpose of calculating the number of outstanding Common Shares under subsections
(b) and (c) of this Section 6.4. 

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

- 42 - 

	 	(c) 	
      If at any time prior to the Maturity Date the Corporation
      fixes a record date for the making of a dividend or distribution to all or
      substantially all the holders of its outstanding Common Shares of (i)
      Common Shares or other securities of any class other than Common Shares,
      (ii) rights, options or warrants (excluding, rights, options or warrants
      entitling the holders thereof for a period of not more than 45 days to
      subscribe for or purchase Common Shares or securities convertible into
      Common Shares), (iii) evidences of its indebtedness, or (iv) any property
      or other assets then, in each such case, the Conversion Price will be
      adjusted immediately after such record date so that it equals the price
      determined by multiplying the Conversion Price in effect on such record
      date by a fraction, of which the numerator is the total number of Common
      Shares outstanding on such record date multiplied by the Current Market
      Price per Common Share on such record date, less the fair market value (as
      determined by the Directors, acting reasonably, which determination will
      be conclusive) of such Common Shares or rights, options or warrants or
      evidences of indebtedness or assets or cash actually distributed, and of
      which the denominator will be the total number of Common Shares
      outstanding on such record date multiplied by such Current Market Price
      per Common Share. Such adjustment will be made successively whenever such
      a record date is fixed. To the extent that such dividend or distribution
      is not so made, the Conversion Price will be readjusted to the Conversion
      Price which would then be in effect if such record date had not been fixed
      or to the Conversion Price which would then be in effect based upon such
      Common Shares or other securities or rights, options or warrants or
      evidences of indebtedness or assets actually distributed, as the case may
      be.

	 	 	 
	 	(d) 	
      If at any time prior to the Maturity Date, there is a
      reclassification of the Common Shares or a capital reorganization of the
      Corporation (other than as described in Section 6.4(a)) or a
      consolidation, merger, arrangement, acquisition or business combination of
      the Corporation with or into any other Person or other entity; or a sale
      or conveyance of the property and assets of the Corporation as an entirety
      or substantially as an entirety to any other Person or other entity or a
      liquidation, dissolution or winding-up of the Corporation, or similar
      transaction, any holder of a Debenture who has not exercised its right of
      conversion prior to the effective date of such reclassification, capital
      reorganization, consolidation, merger, arrangement, acquisition, business
      combination, sale or conveyance, liquidation, termination, dissolution,
      winding-up, or similar transaction, upon the exercise of such right
      thereafter, will be entitled to receive and will accept, in lieu of the
      number of Common Shares then sought to be acquired by it, the number
    of Common Shares or other securities or property of the
Corporation or of the Person or other entity resulting from such
reclassification, capital reorganization, consolidation, merger, arrangement,
acquisition or business combination or to which such sale or conveyance may be
made or which holders of Common Shares receive pursuant to such liquidation,
termination, dissolution or winding-up, as the case may be, that such holder of
a Debenture would have been entitled to receive on such reclassification,
capital reorganization, consolidation, arrangement, merger, acquisition,
business combination, sale or conveyance or liquidation, termination,
dissolution or winding-up, or similar transaction, if on the record date or the
effective date thereof, as the case may be, the holder had been the registered
holder of the number of Common Shares sought to be acquired by it and to which
it was entitled to acquire upon the exercise of the conversion right. If
determined appropriate by the Directors to give effect to or to evidence the
provisions of this Section 6.4(d), the Corporation, its successor, or such
purchasing Person or other entity, as the case may be, will, prior to or
contemporaneously with any such reclassification, capital reorganization,
consolidation, merger, arrangement, acquisition, business combination, sale or
conveyance or liquidation, termination, dissolution or winding-up, or similar
transaction, enter into an indenture which provides, to the extent reasonably
possible, for the application of the provisions set forth in this Indenture with
respect to the rights and interests thereafter of the holder of Debentures to
the end that the provisions set forth in this Indenture will thereafter
correspondingly be made applicable, as nearly as reasonably possible, with
respect to any Common Shares or other securities or property to which a holder
of Debentures is entitled on the exercise of its conversion rights thereafter.
Any indenture entered into between the Corporation and the Debenture Trustee
pursuant to the provisions of this Section 6.4(d) will be a supplemental
indenture entered into pursuant to the provisions of Article 16. Any indenture
entered into between the Corporation, any successor to the Corporation or such
purchasing Person or other entity and the Debenture Trustee will provide for
adjustments which will be as nearly equivalent as may be practicable to the
adjustments provided in this Section 6.4(d) and which will apply to successive
reclassifications, capital reorganizations, consolidations, mergers,
arrangements, acquisitions, business combinations, sales or conveyances and to
any successive liquidation, termination, dissolution or winding-up, or similar
transaction.

- 43 - 

	 	(e) 	
      In any case in which this Section 6.4 requires that an
      adjustment will become effective immediately after a record date for an
      event referred to herein, the Corporation may defer, until the occurrence
      of such event, issuing to the holder of any Debenture converted after such
      record date and before the occurrence of such event the additional Common
      Shares issuable upon such conversion by reason of the adjustment required
      by such event before giving effect to such adjustment; provided, however,
      that the Corporation will deliver to such holder an appropriate instrument
      evidencing such holder’s right to receive such additional Common Shares
      upon the occurrence of the event requiring such adjustment and the right
      to receive any dividends paid or distributions made on such additional
      Common Shares declared in favour of holders of record of Common Shares on
      and after the Business Day immediately after the Date of Conversion or
      such later date as such holder would, but for the provisions of this
      Section 6.4(e), have become the holder of record of such additional Common
      Shares pursuant to Section 6.3(b).

- 44 - 

	 	(f) 	
      The adjustments provided for in this Section 6.4 are
      cumulative and will apply to successive subdivisions, redivisions,
      reductions, combinations, consolidations, dividends, distributions, issues
      or other events resulting in any adjustment under the provisions of this
      Section; provided however that, notwithstanding any other provision of
      this Section, no adjustment of the Conversion Price will be required
      unless such adjustment would require an increase or decrease of at least
      1% in the Conversion Price then in effect; provided, further, that any
      adjustments which by reason of this Section 6.4(f) are not required to be
      made will be carried forward and taken into account in any subsequent
      adjustment.

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

	 	 	 
	 	(h) 	
      In the event of any question arising with respect to the
      adjustments provided in this Section 6.4, such question will be
      conclusively determined by a firm of nationally recognized chartered
      accountants appointed by the Corporation (who may be the Auditor of the
      Corporation); such accountants will have access to all necessary records
      of the Corporation and such determination will be binding upon the
      Corporation, the Debenture Trustee, and the Debentureholders, absent
      manifest error.

	 	 	 
	 	(i) 	
      In case the Corporation takes any action affecting the
      Common Shares other than action described in this Section 6.4, which in
      the opinion of the Directors, would materially affect the rights of
      Debentureholders (including their conversion rights), the Conversion Price
      and the Common Shares issuable upon conversion of the Debentures will be
      adjusted in such manner and at such time, by action of the Directors,
      subject to the prior written consent of the TSXV or such other exchange on
      which the Debentures and the Common Shares are then listed, as the
      Directors in their discretion may determine to be equitable in the
      circumstances. Failure of the Directors to make such an adjustment will be
      conclusive evidence that they have determined that it is equitable to make
      no adjustment in the circumstances.

	 	 	 
	 	(j) 	
      Subject to the prior written consent of the TSXV or such
      other exchange on which the Debentures may be listed and posted for
      trading, no adjustment in the Conversion Price will be made in respect of
      any event described in Sections 6.4(a), 6.4(b) or 6.4(c) other than the
      events described in 6.4(a)(i) or 6.4(a)(ii) if the holders of the
      Debentures are entitled to participate in such event on the same terms
      mutatis mutandis as if they had converted their Debentures prior to
      the effective date or record date, as the case may be, of such
    event.

	 	 	 
	 	(k) 	
      Except as stated above in this Section 6.4, no adjustment
      will be made in the Conversion Price of any Debenture as a result of the
      issuance of Common Shares at less than the Current Market Price for such
      Common Shares on the date of issuance or the then applicable Conversion
      Price.

	6.5 	
      No Requirement to Issue Fractional Common
      Shares

The Corporation will not be required to issue fractional Common
Shares upon the conversion of Debentures pursuant to this Article 6. If more
than one Debenture is surrendered for conversion at one time by the same holder, the number of whole Common
Shares issuable upon conversion thereof will be computed on the basis of the
aggregate principal amount of such Debentures to be converted. If any fractional
interest in a Common Share would, except for the provisions of this Section 6.5,
be deliverable upon the conversion of any principal amount of Debentures, the
Corporation will, in lieu of delivering any certificate representing such
fractional interest, make a cash payment to the holder of such Debenture of an
amount equal to the fractional interest which would have been issuable
multiplied by the Current Market Price of the Common Shares on the Date of
Conversion (less applicable Withholding Taxes, if any). 

- 45 - 

	6.6 	
      Corporation to Reserve Common
  Shares

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

	6.7 	
      Cancellation of Converted
  Debentures

Subject to the provisions of Section 6.3 as to Debentures
converted in part, all Debentures converted in whole or in part under the
provisions of this Article 6 will be forthwith delivered to and cancelled by the
Debenture Trustee and no Debenture will be issued in substitution therefor. 

	6.8 	
      Certificate as to
Adjustment

The Corporation will, from time to time immediately after the
occurrence of any event which requires an adjustment or readjustment as provided
in Section 6.4, deliver an Officer’s Certificate to the Debenture Trustee
specifying the nature of the event requiring the same and the amount of the
adjustment necessitated thereby and setting forth in reasonable detail the
method of calculation and the facts upon which such calculation is based. Until
such Officer’s Certificate is received by the Debenture Trustee, the Debenture
Trustee may act and be protected in acting on the presumption that no adjustment
has been made or is required. The Corporation will, except in respect of any
subdivision, redivision, reduction, combination or consolidation of the Common
Shares, forthwith give notice to the Debentureholders in the manner provided in
Section 14.2 specifying the event requiring such adjustment or readjustment and
the results thereof, including the resulting Conversion Price; provided that if
the Corporation has given notice under Section 6.9 covering all the relevant
facts in respect of such event, no such notice need be given under this Section
6.8. 

	6.9 	
      Notice of Special Matters

The Corporation covenants with the Debenture Trustee that so
long as any Debenture remains outstanding, it will give notice to the Debenture
Trustee, and to the Debentureholders in the manner provided in Section 14.2 and
14.3, of its intention to fix a record date for any event referred to in Section
6.4(a), 6.4(b) or 6.4(c) (other than a subdivision, redivision, reduction,
combination or consolidation of its Common Shares) which may give rise to an
adjustment in the Conversion Price, and, in each case, such notice will specify
the particulars of such event and the record date and the effective date for
such event; provided that the Corporation will only be required to specify in such notice such particulars of such
event as has been fixed and determined on the date on which such notice is
given. Such notice will be given not less than 14 days in each case prior to
such applicable record date. 

- 46 - 

	6.10 	
      Protection of Debenture
Trustee

Subject to Section 15.3, the Debenture Trustee: 

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

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

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

	 	 	 
	 	(d) 	
      The Debenture Trustee may rely upon all certificates and
      other documents filed by the Corporation pursuant to this Article for all
      purposes of the adjustment.

	ARTICLE 7 
	COVENANTS OF THE CORPORATION 

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

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

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

	7.2 	
      To Pay Debenture Trustee’s
  Remuneration

The Corporation will pay the Debenture Trustee reasonable
remuneration for its services as Debenture Trustee hereunder and will pay or
reimburse the Debenture Trustee on demand all reasonable expenses and monies
which have been paid by the Debenture Trustee in connection with the execution
of the trusts hereby created (including the reasonable compensation and
disbursements of its Counsel and all other assistants and advisors not regularly
in its employ) and such monies including the Debenture Trustee’s remuneration,
will be payable out of any funds coming into the possession of the Debenture
Trustee in priority to payment of any principal of and premium (if any) of the
Debentures or interest thereon. Such remuneration will continue to be payable
until the trusts hereof be finally wound up and whether or not the trusts of this Indenture are in the course of
administration by or under the direction of a court of competent jurisdiction.

- 47 - 

	7.3 	
      To Give Notice of an Event of
  Default

The Corporation will notify the Debenture Trustee immediately
upon obtaining knowledge of any Event of Default hereunder. 

	7.4 	
      Preservation of Existence,
etc.

Subject to the express provisions hereof, including Article 11,
the Corporation will carry on and conduct its activities and business, and cause
its Subsidiaries to carry on and conduct their businesses, in a proper,
efficient and business-like manner and in accordance with good business
practices; and, subject to the express provisions hereof, including Article 11,
it will do or cause to be done all things necessary to preserve and keep in full
force and effect its and its Subsidiaries respective existences and rights. 

	7.5 	
      Keeping of Books

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

	7.6 	
      Annual Certificate of
Compliance

The Corporation will deliver to the Debenture Trustee, within
140 days after the end of each calendar year, an Officer’s Certificate as to the
knowledge of such Director or officer of the Corporation who executes the
Officer’s Certificate of the Corporation’s compliance with all conditions and
covenants of this Indenture certifying that after reasonable investigation and
inquiry, the Corporation 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 any steps taken or proposed to be taken to remedy such Event of
Default. 

	7.7 	
      Performance of Covenants of Debenture
    Trustee

If the Corporation fails to perform any of its covenants
contained in this Indenture, then the Debenture Trustee may notify the
Debentureholders of such failure on the part of the Corporation or may itself
perform any of the covenants capable of being performed by it, but (subject to
Sections 8.2 and 15.3) will be under no obligation to do so or to notify the
Debentureholders. All sums so expended or advanced by the Debenture Trustee will
be repayable as provided in Section 7.2. No such performance, expenditure or
advance by the Debenture Trustee will be deemed to relieve the Corporation of
any default hereunder. 

	7.8 	
      Reporting Issuer and Listing
  Status

The Corporation will use commercially reasonable efforts to
ensure that the Common Shares are listed and posted for trading on the TSXV or
such other exchange on which the Common Shares are listed and posted for
trading, to maintain such listing and posting for trading of the Common Shares on the TSXV or such other exchange on which the
Common Shares are listed and posted for trading, and to maintain the
Corporation’s status as a “reporting issuer not in default” under Applicable
Securities Legislation and, subject to and in compliance with, reporting
obligations under either Section 13 or Section 15(d) of the United States Securities Exchange Act of 1934, as amended; provided that the foregoing
covenant shall not prevent or restrict the Corporation from carrying out a
transaction to which Section 2.2(k) or Article 11 would apply if carried out in
compliance with Section 2.2(k) or Article 11, respectively, even if as a result
of such transaction the Common Shares or the Debentures, as the case may be,
cease to be listed on the TSXV or another stock exchange recognized by relevant
securities regulatory authorities or the Corporation ceases to be a “reporting
issuer”.

- 48 - 

	7.9 	
      Maximum Amount of
Debentures

The Corporation will ensure that the Debentures issued
hereunder together with any other securities issued by the Corporation under an
indenture in reliance upon the exemption afforded in Section 304(a)9 of the
United States Trust Indenture Act of 1939, as amended, within the same period of
thirty six (36) consecutive months as any Debenture issued hereunder shall not
exceed more than $10,000,000 in aggregate principal. 

	ARTICLE 8 
	DEFAULT 

	8.1 	
      Events of Default

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

	 	(a) 	
      failure for 30 days to pay interest on the Debentures
      when due;

	 	 	 
	 	(b) 	
      failure to pay principal or premium, if any, on the
      Debentures when due whether at maturity, upon redemption, by declaration
      or otherwise (whether such payment is due in cash, Common Shares or other
      securities or property or a combination thereof);

	 	 	 
	 	(c) 	
      default in the delivery, when due, of all cash and any
      Common Shares or other consideration, payable on conversion with respect
      to the Debentures, and the continuance of any such default for 15
    days;

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

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

- 49 - 

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

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

	 	 	 
	 	(h) 	
      default in the observance or performance of any covenant
      contained in this Indenture by the Corporation and 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 Debenture Trustee or a holder of not less
      than 25% of the aggregate principal amount of the Debentures to the
      Corporation specifying such default and requiring the Corporation to
      remedy (or obtain a waiver for) such default.

In each and every such event the Debenture Trustee may, in its
discretion, but subject to the provisions of this Section, and will, 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 prior funding and
indemnification to its satisfaction, subject to the provisions of Section 8.3,
by notice in writing to the Corporation, declare the principal of and interest
on all Debentures then outstanding and all other monies outstanding hereunder to
be due and payable and the same will forthwith become immediately due and
payable to the Debenture Trustee, and the Corporation will forthwith pay to the
Debenture Trustee for the benefit of the Debentureholders such principal,
accrued and unpaid interest and interest on amounts in default on such
Debentures and all other monies outstanding hereunder, together with subsequent
interest at the rate borne by the Debentures on such principal, interest and
such other monies from the date of such declaration until payment is received by
the Debenture Trustee, such subsequent interest to be payable at the times and
places and in the monies mentioned in and according to the tenor of the
Debentures. Such payment when made will be deemed to have been made in discharge
of the Corporation’s obligations hereunder and any monies so received by the
Debenture Trustee will be applied in the manner provided in Section 8.6. 

	8.2 	
      Notice of Events of
Default

If an Event of Default occurs and is continuing the Debenture
Trustee will, within 30 days after it receives written notice of the occurrence
of such Event of Default, give notice of such Event of Default to the
Debentureholders in the manner provided in Section 14.2, provided that
notwithstanding the foregoing, unless the Debenture Trustee has been requested
to do so by the holders of not less than 25% of the principal amount of the
Debentures then outstanding, the Debenture Trustee will not be required to give
such notice. 

	8.3 	
      Waiver of Default

Upon the happening of any Event of Default hereunder: 

	 	(a) 	
      the holders of the Debentures will 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 Debenture Trustee to waive any
Event of Default and to cancel any declaration made by the Debenture Trustee
pursuant to Section 8.1 and the Debenture Trustee will thereupon waive the Event
of Default and cancel such declaration, or either, upon such terms and
conditions as will be prescribed in such requisition; and 

- 50 - 

	 	(b) 	
      the Debenture 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, will
      have power to waive any Event of Default if, the same has been cured or
      adequate satisfaction made therefor, and in such event to cancel any such
      declaration theretofore made by the Debenture Trustee in the exercise of
      its discretion, upon such terms and conditions as the Debenture Trustee
      may deem advisable.

No such act or omission either of the Debenture Trustee or of
the Debentureholders will extend to or be taken in any manner whatsoever to
affect any subsequent Event of Default or the rights resulting therefrom. 

	8.4 	
      Enforcement by the Debenture
  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 Corporation fails to pay to the Debenture
      Trustee, forthwith after the same has been declared to be due and payable
      under Section 8.1, the principal of and premium (if any) and interest on
      all Debentures then outstanding, together with any other amounts due
      hereunder, the Debenture Trustee may in its discretion and will 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 premium
      (if any) and interest on all the Debentures then outstanding together with
      any other amounts due hereunder by such proceedings authorized by this
      Indenture or by law or equity as the Debenture Trustee in such request
      will have been directed to take, or if such request contains no such
      direction, or if the Debenture Trustee acts without such request, then by
      such proceedings authorized by this Indenture or by suit at law or in
      equity as the Debenture Trustee deems expedient.

	 	 	 
	 	(b) 	
      The Debenture Trustee will be entitled and empowered,
      either in its own name or as Debenture Trustee of an express trust, or as
      mandatary 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 Debenture Trustee and of the holders of the
      Debentures allowed in any insolvency, bankruptcy, liquidation, arrangement
      or other judicial proceedings relative to the Corporation or its creditors
      or relative to or affecting its property. The Debenture Trustee is hereby
      irrevocably appointed (and the successive respective holders of the
      Debentures by taking and holding the same will be conclusively deemed to
      have so appointed the Debenture Trustee) the true and lawful mandatary 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 Debenture Trustee, in order to have the
respective claims of the Debenture Trustee and of the holders of the Debentures
against the Corporation or its property allowed in any such proceeding, and to
receive payment of or on account of such claims; provided, however, that subject
to Section 8.3, nothing contained in this Indenture will be deemed to give to
the Debenture Trustee, unless so authorized by Extraordinary Resolution, any
right to accept or consent to any plan of reorganization, arrangement or
otherwise by action of any character in such proceeding to waive or change in
any way any right of any Debentureholder. 

- 51 - 

	 	(c) 	
      The Debenture Trustee will also have the power at any
      time and from time to time to institute and maintain such suits and
      proceedings as it may be advised are 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
      Debenture 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 Debenture Trustee will be
      brought in the name of the Debenture Trustee as trustee of an express
      trust, and any recovery of judgment will be for the rateable benefit of
      the holders of the Debentures subject to the provisions of this Indenture.
      In any proceeding brought by the Debenture 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 Debenture Trustee will be a party) the Debenture Trustee will be
      held to represent all the holders of the Debentures, and it will 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 will have any right to institute any
action, suit or proceeding at law or in equity for the purpose of enforcing
payment of the principal of or interest on the Debentures or for the execution
of any trust or power hereunder or for the appointment of a liquidator or
receiver or for a receiving order under the Bankruptcy and Insolvency Act
(Canada) or to have the Corporation wound up or to file or prove a claim in any
liquidation or bankruptcy proceeding or for any other remedy hereunder, unless:
(a) such holder has previously given to the Debenture Trustee 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 have made a
request to the Debenture Trustee and the Debenture Trustee has 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 has furnished to
the Debenture Trustee, when so requested by the Debenture 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 Debenture Trustee has 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 Debenture 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. 

- 52 - 

	8.6 	
      Application of Monies by Debenture
  Trustee

	 	(a) 	
      Except as herein otherwise expressly provided, any monies
      received by the Debenture Trustee from the Corporation 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
      Corporation, will be applied, together with any other monies in the hands
      of the Debenture Trustee available for such purpose, as
  follows:

	 	(i) 	
      first, in payment or in reimbursement to the Debenture
      Trustee of its compensation, costs, charges, expenses, borrowings,
      advances or other monies furnished or provided by or at the instance of
      the Debenture 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 (and in the case of
      applicable Withholding Taxes, if any, on behalf of) the holders of
      Debentures, of the principal of and premium (if any) and accrued and
      unpaid interest and interest on amounts in default on the Debentures which
      will then be outstanding in the priority of principal first and then
      premium and then accrued and unpaid interest and interest on amounts in
      default unless otherwise directed by Extraordinary Resolution and in that
      case in such order or priority as between principal, premium (if any) and
      interest as may be directed by such resolution; and

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

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

	 	 	 
	 	(b) 	
      The Debenture Trustee will 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
      Debenture Trustee may think necessary to provide for the payments
      mentioned in Section 8.6(a)(i), is insufficient to make a distribution of
      at least 2% of the aggregate principal amount of the outstanding
      Debentures, but it may retain the money so received by it and invest or
      deposit the same as provided for in Section 15.9 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 will be
sufficient for the said purpose or until it considers it advisable to apply the
same in the manner hereinbefore set forth. The foregoing will, however, not
apply to a final payment in distribution hereunder. 

- 53 - 

	8.7 	
      Notice of Payment by Debenture
  Trustee

Not less than 15 days’ notice will be given in the manner
provided in Section 14.2 by the Debenture Trustee to the Debentureholders of any
payment to be made under this Article 8. Such notice will 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
has been duly demanded and has been refused, the Debentureholders will be
entitled to interest only on the balance (if any) of the principal monies,
premium (if any) and interest due (if any) to them, respectively, on the
Debentures (less applicable Withholding Taxes, if any), after deduction of the
respective amounts payable in respect thereof on the day so fixed. 

	8.8 	
      Debenture Trustee May Demand Production of
      Debentures

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

	8.9 	
      Remedies Cumulative

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

	8.10 	
      Judgment Against the
Corporation

The Corporation covenants and agrees with the Debenture 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 Debenture Trustee, as trustee for the
Debentureholders, for any amount which may remain due in respect of the
Debentures and premium (if any) and the interest thereon and any other monies
owing hereunder. 

	8.11 	
      Immunity of Directors and
Others

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

- 54 - 

	ARTICLE 9 
	SATISFACTION AND DISCHARGE

	9.1 	
      Cancellation and
Destruction

All Debentures will forthwith after payment thereof be
delivered to the Debenture Trustee and cancelled by it. All Debentures cancelled
or required to be cancelled under this or any other provision of this Indenture
will be cancelled by the Debenture Trustee and, if required by the Corporation,
the Debenture Trustee will furnish to it a cancellation certificate setting out
the designating numbers of the Debentures so cancelled. 

	9.2 	
      Non-Presentation of
Debentures

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

	 	(a) 	
      the Corporation will be entitled to pay or deliver to the
      Debenture Trustee and direct it to set aside; or

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

	 	 	 
	 	(c) 	
      if the redemption was pursuant to notice given by the
      Debenture Trustee, the Debenture Trustee may itself set
  aside.

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

	9.3 	
      Repayment of Unclaimed Monies or Common
    Shares

Subject to applicable law, any monies or Common Shares, if
applicable, set aside under Section 9.2 and not claimed by and paid to holders
of Debentures as provided in Section 9.2 within six years after the date of such
setting aside will be repaid and delivered to the Corporation, upon written
request, by the Debenture Trustee and thereupon the Debenture Trustee will be
released from all further liability with respect to such monies or Common
Shares, if applicable, and thereafter the holders of the Debentures in respect
of which such monies or Common Shares, if applicable, were so repaid to the
Corporation will have no rights in respect thereof except to obtain payment and
delivery of the monies or Common Shares, if applicable, from the
Corporation.

- 55 - 

	9.4 	
      Discharge

The Debenture Trustee will at the written request of the
Corporation release and discharge this Indenture and execute and deliver such
instruments as it is advised by Counsel are requisite for that purpose and to
release the Corporation from its covenants herein contained (other than the
provisions relating to the indemnification of the Debenture Trustee), upon proof
being given to the reasonable satisfaction of the Debenture Trustee that the
principal and premium (if any) 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, payment of the principal of and interest
(including interest on amounts in default, if any) on such Debentures and of all
other monies payable hereunder has been duly and effectually provided for in
accordance with the provisions hereof. 

	9.5 	
      Satisfaction

	 	(a) 	
      The Corporation will be deemed to have fully paid,
      satisfied and discharged (a “defeasance”) all of the outstanding
      Debentures and the Debenture Trustee, at the expense of the Corporation,
      will 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 Corporation has deposited or caused to be deposited
      with the Debenture Trustee as trust funds or property in trust for the
      purpose of making payment on such Debentures, an amount in money or Common
      Shares, if applicable, sufficient to pay, satisfy and discharge the entire
      amount of principal, premium, if any, and interest, if any, to maturity or
      any repayment date, Redemption Date, Change of Control Purchase Date or
      upon any conversion or otherwise, as the case may be, of such Debentures;
      or

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

	 	(A) 	
      if all of such 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 any of such Debentures are issued in a currency or
      currency unit other than Canadian dollars, cash in the currency(ies) or
      currency unit(s) in which such Debentures are payable and/or such amount
      in such currency(ies) or currency unit(s) 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 such Debentures are payable, as the case may
    be;

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

- 56 - 

	 	(iii) 	
      the Corporation has paid, caused to be paid or made
      provisions to the satisfaction of the Debenture Trustee for the payment of
      all other sums payable with respect to all of such Debentures (together
      with all applicable expenses of the Debenture Trustee in connection with
      the payment of such Debentures);

	 	 	 
	 	(iv) 	
      the Corporation has delivered to the Debenture Trustee
      either (A) an opinion of Counsel in Canada reasonably acceptable to the
      Debenture Trustee to the effect that, based upon Canadian law then in
      effect (and also taking into account any proposed amendments to Canadian
      law which, if enacted in the form proposed, would have retroactive
      effect), the beneficial owners of the Debentures will not recognize
      income, gain or loss for Canadian federal, provincial or territorial or
      other tax purposes, as a result of the defeasance and will be subject to
      Canadian taxes on the same amounts and in the same manner and at the same
      time as would have been the case if such defeasance had not occurred or
      (B) a ruling directed to the Debenture Trustee received from tax
      authorities of Canada to the same effect as the opinion of Counsel
      described in clause (A) above;

	 	 	 
	 	(v) 	
      the Corporation has delivered to the Debenture 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 the defeasance payment was not made
      by the Corporation with the intent of preferring the Debentureholders over
      the other creditors of the Corporation or with the intent of defeating,
      hindering, delaying or defrauding creditors of the Corporation or others;
      and

	 	 	 
	 	(vi) 	
      no Event of Default shall have occurred and be continuing
      on the date of the defeasance payment.

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

	 	 	 
	 	(b) 	
      Upon the satisfaction of the conditions set forth in this
      Section 9.5 with respect to all the outstanding Debentures, 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, Article 3, Article 4, Article 6, Article 9, Section 8.4 and the
      provisions of Article 1 pertaining to the foregoing provisions) will no
      longer be binding upon or applicable to the
Corporation.

- 57 - 

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

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

	9.6 	
      Continuance of Rights, Duties and
    Obligations

	 	(a) 	
      Where trust funds or trust property have been deposited
      pursuant to Section 9.5, the holders of Debentures and the Corporation
      will continue to have and be subject to their respective rights, duties
      and obligations under Article 2, Article 3, Article 4, Article 6, Article
      9, Section 8.4 and the provisions of Article 1 pertaining to the foregoing
      provisions, as may be applicable.

	 	 	 
	 	(b) 	
      In the event that, after the deposit of trust funds or
      trust property pursuant to Section 9.5 in respect of Debentures (the
      “Defeased Debentures”), any holder of any of the Defeased
      Debentures from time to time converts its Debentures to Common Shares or
      other securities of the Corporation in accordance with Section 2.2(f),
      Article 6 or any other provision of this Indenture, the Debenture Trustee
      will, upon receipt of a Written Direction of the Corporation, return to
      the Corporation from time to time the proportionate amount of the trust
      funds or other trust property deposited with the Debenture Trustee
      pursuant to Section 9.5 in respect of the Defeased Debentures which is
      applicable to the Defeased Debentures so converted (which amount will 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 Corporation is required to
      purchase any outstanding Debentures pursuant to Section 2.2(k), the
      Corporation will be entitled to use any trust money or trust property
      deposited with the Debenture 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 Corporation the Offer Price payable to such holders
      in respect of such offer to purchase the Debentures. Upon receipt of a
      Written Direction of the Corporation, the Debenture Trustee will be
      entitled to pay to such holder from such trust money or trust property
      deposited with the Debenture 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 from the Corporation
      (which amount will be based on the applicable principal amount of the Defeased Debentures held by
holders that accept any such offer in relation to the aggregate outstanding
principal amount of all the Defeased Debentures). 

- 58 - 

	ARTICLE 10 
	COMMON SHARE INTEREST PAYMENT ELECTION
  

	10.1 	
      Common Share Interest Payment
  Election

	 	(a) 	
      The Corporation may, at its sole option, elect to satisfy
      its obligation to pay on an Interest Payment Date the interest then
      payable on account of all, but not less than all, of the Debentures by
      delivering to the holders and the Debenture Trustee not less than 15 days
      and not more than 30 days prior notice to the Interest Payment Date (the
      “Common Share Interest Payment Election Notice”) and, on the
      Interest Payment Date, for each $40 of semi-annual interest amount, by
      issuing and delivering to holders that number of Freely Tradeable, fully
      paid and non-assessable Common Shares obtained by dividing each $40 of
      interest amount by the market price of the Common Shares (as defined by
      the policies of the TSXV) on the date before the public announcement by
      the Corporation of its intention to satisfy its Interest Obligation in
      Common Shares (the “Common Share Interest Payment
  Election”).

	 	 	 
	 	(b) 	
      The Corporation’s right to make a Common Share Interest
      Payment Election shall be conditional upon the following conditions being
      met on the Business Day immediately preceding the Interest Payment
      Date:

	 	(i) 	
      the Common Shares to be issued on exercise of the Common
      Share Interest Payment Election shall be issued from treasury of the
      Corporation and shall be Freely Tradeable and fully paid and non-
      assessable;

	 	 	 
	 	(ii) 	
      the listing or quotation of such Common Shares on the
      TSXV or any successor exchange on which the Common Shares are listed for
      trading;

	 	 	 
	 	(iii) 	
      the Corporation being a reporting issuer or the
      equivalent in good standing or equivalent under Applicable Securities
      Legislation in the Provinces of Canada in which the Debentures have been
      distributed on the date of their issuance;

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

	 	 	 
	 	(v) 	
      the receipt by the Debenture Trustee of an Officers’
      Certificate stating that conditions (i), (ii), (iii) and (iv) above have
      been satisfied and setting forth the number of Shares to be delivered for
      each $40 of interest amount and the Current Market Price of the Shares on
      the date before the public announcement by the Corporation of its
      intention to satisfy its Interest Obligation in Common Shares;
  and

	 	 	 
	 	(vi) 	
      the receipt by the Debenture Trustee (which shall
      distribute to any Holder who so requests) of an opinion of counsel to the
      effect that such Common Shares have been duly authorized and, when issued
      and delivered pursuant to the terms of this Indenture in payment of the
Interest Obligation, will be validly issued as fully paid and non-assessable,
and that conditions (i) and (ii) above have been satisfied. 

- 59 - 

If the foregoing conditions are not
satisfied by the close of business on the Business Day preceding the Interest
Payment Date, the Corporation shall pay in cash the interest that would
otherwise have been satisfied in Common Shares, unless the Debentureholders
waive the conditions which are not satisfied or extends the time by which the
Corporation is to satisfy such conditions by way of Extraordinary Resolution.

	 	(c) 	
      In the event that the Corporation exercises a Common
      Share Interest Payment Election, the Corporation shall on the relevant
      Interest Payment Date deliver to the Debenture Trustee the Common Shares
      and, if applicable, the cash payable in connection therewith.

	 	 	 
	 	(d) 	
      No fractional Common Shares shall be delivered upon the
      exercise of a Common Share Interest Payment Election but, in lieu thereof,
      the Corporation shall pay to the Debenture Trustee for the account of the
      holders the cash equivalent thereof determined on the basis of the Current
      Market Price of the Common Shares on the date before the public
      announcement by the Corporation of its intention to satisfy its Interest
      Obligation in Common Shares.

	 	 	 
	 	(e) 	
      A holder shall be treated as the shareholder of record of
      the Common Shares issued on due exercise by the Corporation of its Common
      Share Interest Payment Election effective immediately after the close of
      business on the Interest Payment Date, and shall be entitled to all
      substitutions therefor, all income earned thereon or accretions thereto
      and all dividends or distributions (including stock dividends and
      dividends or distributions in kind) thereon and arising
  thereafter.

	 	 	 
	 	(f) 	
      The Corporation shall at all times reserve and keep
      available out of its authorized Common Shares (if the number thereof is or
      becomes limited) solely for the purpose of issue and delivery upon the
      exercise of a Common Share Interest Payment Election as provided herein,
      and shall issue to Debentureholders to whom Common Shares will be issued
      pursuant to the exercise of a Common Share Interest Payment Election, such
      number of Common Shares as shall be issuable in such event.

	 	 	 
	 	(g) 	
      The Corporation shall comply with all Applicable
      Securities Legislation regulating the issue and delivery of Freely
      Tradeable Common Shares upon exercise of a Common Share Interest Payment
      Election, shall obtain any regulatory approval in respect thereof as may
      be required pursuant to Applicable Securities Legislation and shall cause
      to be listed and posted for trading such Common Shares as provided in
      Section 10.1(b)(ii).

	 	 	 
	 	(h) 	
      If the Corporation elects to satisfy its obligation to
      pay the interest by issuing Common Shares pursuant to a Common Share
      Interest Payment Election and the delivery of Common Shares to which a
      holder is entitled is subject to Withholding Tax, each Debentureholder
      shall duly satisfy the requirements imposed under Section 2.11 and the
      Corporation shall thereafter attend to the remittance of such Withholding
      Tax pursuant to Section 2.11.

- 60 - 

	ARTICLE 11 
	SUCCESSORS 

	11.1 	
      Restrictions on Merger and Sale of Certain Assets,
      etc.

Subject to the provisions of Article 12, the Corporation will
not enter into any transaction or series of transactions whereby all or
substantially all of its undertaking, property or assets would become the
property of any other Person (herein called a “Successor”) whether by way
of reorganization, consolidation, arrangement, merger, acquisition, transfer,
sale or otherwise, unless: 

	 	(a) 	
      prior to or contemporaneously with the consummation of
      such transaction the Corporation and the Successor have executed such
      instruments and done such things as, in the opinion of Counsel, are
      necessary or advisable to establish that upon the consummation of such
      transaction:

	 	(i) 	
      the Successor will have assumed all the covenants and
      obligations of the Corporation under this Indenture in respect of the
      Debentures;

	 	 	 
	 	(ii) 	
      the Debentures will be valid and binding obligations of
      the Successor entitling the holders thereof, as against the Successor, to
      all the rights of Debentureholders under this Indenture; and

	 	 	 
	 	(iii) 	
      in the case of an entity organized otherwise than under
      the laws of the Province of Québec, will attorn with respect to the
      Indenture to the jurisdiction of the courts of the Province of
    Québec.

	 	(b) 	
      no condition or event will exist as to the Corporation
      (at the time of such transaction) or the Successor (immediately after such
      transaction) and after giving full effect thereto or immediately after the
      Successor becomes liable to pay the principal monies, premium, if any,
      interest and other monies due or which may become due hereunder, which
      constitutes or would constitute an Event of Default
  hereunder.

	11.2 	
      Vesting of Powers in
Successor

Whenever the conditions of Section 11.1 have been duly observed
and performed, any Successor formed by or resulting from such transaction will
succeed to, and be substituted for, and may exercise every right and power of
the Corporation under this Indenture with the same effect as though the
Successor had been named as the Corporation herein and thereafter, except in the
case of a lease or other similar disposition of property to the Successor, the
Corporation will be relieved of all obligations and covenants under this
Indenture other than provisions for the indemnity of the Debenture Trustee for
anything occurring prior to the completion of the succession transaction, and
the Debentures forthwith upon the Corporation delivering to the Debenture
Trustee an opinion of Counsel to the effect that the transaction will not result
in any material adverse tax consequences to the Corporation or the Successor.
The Debenture Trustee will, at the expense of the Successor, execute any
documents which it may be advised by Counsel are necessary or advisable for
effecting or evidencing such release and discharge. 

- 61 - 

	ARTICLE 12 
	COMPULSORY ACQUISITION 

	12.1 	
      Definitions In this Article
12:

	 	(a) 	
      “Affiliate” and “Associate” have the same
      respective meanings set forth in the Securities Act (Québec);

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

	 	 	 
	 	(c) 	
      “Offer” means an offer to acquire outstanding
      Debentures;

	 	 	 
	 	(d) 	
      “offer to acquire” has the meaning attributed to
      such term in MI 62-104;

	 	 	 
	 	(e) 	
      “Offeror” means a person, or two or more persons
      acting jointly or in concert, who make an offer to acquire
    Debentures;

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

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

	 	 	 
	 	(h) 	
      “Regulation 62-104” means Regulation 62-104 -
      Take-Over Bids and Issuer Bids;

	12.2 	
      Offer for Debentures

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

	 	(a) 	
      within the time provided in the Offer for its acceptance
      or within 60 days after the date the Offer is made, whichever period is
      the shorter, the Offer is accepted by Debentureholders representing at
      least 90% of the outstanding principal amount of the Debentures, other
      than the Offeror’s Debentures;

	 	 	 
	 	(b) 	
      the Offeror has taken up and paid for the Debentures of
      the Debentureholders who accepted the Offer; and

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

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

	12.3 	
      Offeror’s Notice to Dissenting
    Debentureholders

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

- 62 - 

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

	 	 	 
	 	(b) 	
      the Offeror has taken up and paid for, the Debentures of
      the Debentureholders who accepted the Offer;

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

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

	12.4 	
      Delivery of Debenture
  Certificates

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

	12.5 	
      Payment of Consideration to Debenture
    Trustee

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

	12.6 	
      Consideration to be held in
Trust

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

	12.7 	
      Completion of Transfer of Debentures to
    Offeror

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

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

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	 	(b) 	
      send to each Dissenting Debentureholder who has complied
      with Section 12.4 the consideration to which such Dissenting
      Debentureholder is entitled under this Article 12 (less applicable
      Withholding Taxes, if any); and

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

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

	 	 	 
	 	(ii) 	
      the Debenture Trustee or some other person designated in
      such notice are holding in trust the consideration for such Debentures;
      and

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

and the Debenture Trustee is hereby appointed the agent and
mandatary, and is granted power of attorney of the Dissenting Debentureholders
for the purposes of giving effect to the foregoing provisions including, without
limitation, the power and authority to execute such transfers as may be
necessary or desirable in respect of the book-entry only registration system of
the Depositary. 

	12.8 	
      Communication of Offer to
Trust

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

	ARTICLE 13 
	MEETINGS OF DEBENTUREHOLDERS

	13.1 	
      Right to Convene Meeting

The Debenture Trustee or the Corporation may at any time, and
from time to time, and the Debenture Trustee will, on receipt of a written
request of the Corporation or a written request signed by the holders of not
less than 25% of the principal amount of the Debentures then outstanding and
upon receiving funding and being indemnified to its reasonable satisfaction by
the Corporation or by the Debentureholders signing such request against the
costs which may be incurred in connection with the calling and holding of such
meeting, convene a meeting of the Debentureholders. In the event of the
Debenture Trustee failing, within 30 days after receipt of any such request and
such funding of indemnity, to give notice convening a meeting, the Corporation
or such Debentureholders, as the case may be, may convene such meeting. Every
such meeting will be held in the City of Montréal or at such other place as may
be approved or determined by the Debenture Trustee. 

	13.2 	
      Notice of Meetings

At least 21 days’ notice of any meeting will be given to the
Debentureholders in the manner provided in Section 14.2 and a copy of such
notice will be sent by mail to the Debenture Trustee, unless the meeting has been called by it. Such notice
will state the time when and the place where the meeting is to be held and will
state briefly the general nature of the business to be transacted thereat and it
will 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 13. The accidental
omission to give notice of a meeting to any holder of Debentures will not
invalidate any resolution passed at any such meeting. A holder may waive notice
of a meeting either before or after the meeting. 

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	13.3 	
      Chair

Some person, who need not be a Debentureholder, nominated in
writing by the Debenture Trustee will be chair 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 will choose some person present
to be chairman. 

	13.4 	
      Quorum

Subject to the provisions of Section 13.12, at any meeting of
the Debentureholders a quorum consists 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 is not 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, will be
dissolved, but in any other case the meeting will be adjourned to the same day
in the next week (unless such day is not a Business Day in which case it will be
adjourned to the next following Business Day thereafter) at the same time and
place and no notice will be required to be given in respect of such adjourned
meeting. At the adjourned meeting, the Debentureholders present in person or by
proxy will, subject to the provisions of Section 13.12, constitute a quorum and
may transact the business for which the meeting was originally convened
notwithstanding that they may not represent 25% of the principal amount of the
outstanding Debentures. 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
will be transacted at any meeting unless the required quorum is present at the
commencement of business. 

	13.5 	
      Power to Adjourn

The chair 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. 

	13.6 	
      Show of Hands

Every question submitted to a meeting will, subject to Section
13.7, be decided in the first place by a majority of the votes given on a show
of hands except for votes on Extraordinary Resolutions which will 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 will be conclusive evidence of the fact. The
chair of any meeting is entitled, both on a show of hands and on a poll, to vote
in respect of the Debentures, if any, held by him. 

- 65 - 

	13.7 	
      Poll

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

	13.8 	
      Voting

On a show of hands every person who is present and entitled to
vote, whether as a Debentureholder or as proxy for one or more Debentureholders
or both, will have one vote. On a poll each Debentureholder present in person or
represented by a proxy duly appointed by an instrument in writing will be
entitled to one vote in respect of each $1,000 principal amount of Debentures of
which he will then be the holder. 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 will vote together
in respect of the Debentures of which they are joint holders. 

	13.9 	
      Proxies

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

	 	(a) 	
      the form of the instrument appointing a proxy, which will
      be in writing, and the manner in which the same is 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 Debenture Trustee, the Corporation or the Debentureholder
      convening the meeting, as the case may be, may, in the notice convening
      the meeting, direct and the time, if any, before the holding of the
      meeting or any adjournment thereof by which the same will 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 Corporation or to the Debenture 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 will be binding and effective and the
votes given in accordance therewith will be valid and will be counted. Save as
such regulations may provide and subject to Section 13.10 below, the only persons who will 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, will be Debentureholders and persons
whom Debentureholders have by instrument in writing duly appointed as their
proxies. 

- 66 - 

	13.10 	
      Persons Entitled to Attend
  Meetings

The Corporation and the Debenture Trustee, by their respective
officers and Directors, the Auditor of the Corporation and the legal advisers of
the Corporation, the Debenture Trustee or any Debentureholder may attend any
meeting of the Debentureholders, but will have no vote as such. 

	13.11 	
      Powers Exercisable by Extraordinary
    Resolution

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

	 	(a) 	
      power to authorize the Debenture Trustee to grant
      extensions of time for payment of any principal, premium or interest on
      the Debentures, whether or not the principal, premium, or interest, the
      payment of which is extended, is at the time due or overdue;

	 	 	 
	 	(b) 	
      power to sanction any modification, abrogation,
      alteration, compromise or arrangement of the rights of the
      Debentureholders or the Debenture Trustee (provided that the Debenture
      Trustee shall have given its prior written consent thereto) against the
      Corporation, or against its property, whether such rights arise under this
      Indenture or the Debentures or otherwise;

	 	 	 
	 	(c) 	
      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 will be agreed to by the Corporation and to authorize
      the Debenture Trustee to concur in and execute any indenture supplemental
      hereto embodying any modification, change, addition or omission;

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

	 	 	 
	 	(e) 	
      power to direct or authorize the Debenture 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;

- 67 - 

	 	(f) 	
      subject to Section 8.3(a), power to waive, and direct the
      Debenture Trustee to waive, any default hereunder and/or cancel any
      declaration made by the Debenture Trustee pursuant to Section 8.1 either
      unconditionally or upon any condition specified in such Extraordinary
      Resolution;

	 	 	 
	 	(g) 	
      power to restrain any Debentureholder from taking or
      instituting any suit, action or proceeding permitted by Section 8.5 for
      the purpose of enforcing payment of the principal, premium or interest on
      the Debentures, or for the execution of any trust or power
    hereunder;

	 	 	 
	 	(h) 	
      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 is permitted by Section 8.5, of the costs, charges and expenses
      reasonably and properly incurred by such Debentureholder in connection
      therewith;

	 	 	 
	 	(i) 	
      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 Common Shares or other
      securities of the Corporation;

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

	 	 	 
	 	(k) 	
      power to remove the Debenture Trustee from office and to
      appoint a new Debenture Trustee provided that no such removal will be
      effective unless and until a new Debenture Trustee has become bound by
      this Indenture;

	 	 	 
	 	(l) 	
      power to sanction the exchange of the Debentures for or
      the conversion thereof into Common Shares, bonds, debentures or other
      securities or obligations of the Corporation or of any other Person formed
      or to be formed;

	 	 	 
	 	(m) 	
      power to authorize the distribution in specie of any
      Common Shares or securities received pursuant to a transaction authorized
      under the provisions of Section 13.11(l); and

- 68 - 

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

	13.12 	
      Meaning of “Extraordinary
  Resolution”

	 	(a) 	
      The expression “Extraordinary Resolution” when
      used in this Indenture means, subject as hereinafter in this Article 13
      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 13 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 holders of not less than 662⁄3% of
      the principal amount of the Debentures 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 or on the requisition of
      Debentureholders, will be dissolved, but in any other case it shall be
      adjourned to the same day in the next week (unless such day is not a
      Business Day in which case it will be adjourned to the next following
      Business Day thereafter) at the same time and place and no notice will be
      required to be given in respect of such adjourned meeting. At the
      adjourned meeting the Debentureholders present in person or by proxy will
      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
      662⁄3% of the principal amount of the Debentures present or represented
      by proxy at the meeting and voted upon on a poll will 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 will always be given
      on a poll and no demand for a poll on an Extraordinary Resolution is
      necessary.

	13.13 	
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 will 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. 

	13.14 	
Minutes

Minutes of all resolutions and proceedings at every meeting as
aforesaid will be made and duly entered in books to be from time to time
provided for that purpose by the Corporation, and any such minutes as aforesaid,
if signed by the chairman of the meeting at which such resolutions were passed
or proceedings had, or by the chairman of the next succeeding meeting of the
Debentureholders, will 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 have been made, will 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. 

- 69 - 

	13.15 	
      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 13 provided, may also be taken and exercised by the holders of the
requisite principal amount of all the outstanding Debentures by an instrument in
writing signed in one or more counterparts and the expression “resolution”, or
“Extraordinary Resolution”, as the case may be, when used in this Indenture
includes an instrument so signed. 

	13.16 	
      Binding Effect of
Resolutions

Every resolution and every Extraordinary Resolution passed in
accordance with the provisions of this Article 13 at a meeting of
Debentureholders will be binding upon all the Debentureholders, whether present
at or absent from such meeting, and every instrument in writing signed by
Debentureholders in accordance with Section 13.15 will be binding upon all the
Debentureholders, whether signatories thereto or not, and each and every
Debentureholder and the Debenture Trustee (subject to the provisions for its
indemnity herein contained) will be bound to give effect accordingly to every
such resolution, Extraordinary Resolution and instrument in writing. 

	13.17 	
      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 Debenture Trustee may, in its discretion, require
      proof of execution in cases where it deems proof desirable and may accept
      such proof as it considers proper.

	ARTICLE 14 
	NOTICES 

	14.1 	
      Notice to the
Corporation

	 	(a) 	
      Any notice to the Corporation under the provisions of
      this Indenture will be valid and effective, if delivered or sent via
      facsimile to the Corporation at 6240 Abrams, Ville Saint-Laurent, QC H4S
      1Y2, Attention: Corporate Secretary, Facsimile No.: 514-331-0436, and
      copies delivered to McCarthy Tétrault LLP, 1000 De La Gauchetière Street
      West, Suite 2500, Montréal, QC H4B 0A2, Attention: Clemens Mayr, Facsimile
      No.: 514-875-6246, or if given by registered letter, postage prepaid, to
      such offices and so addressed and if mailed, will be deemed to have been
      effectively given three days following the mailing thereof. The
      Corporation may from time to time notify the Debenture Trustee in writing
      of a change of address which thereafter, until changed by like notice,
      will be the address of the Corporation for all purposes of this
      Indenture.

- 70 - 

	 	(b) 	
      If by reason of any interruption of mail service, actual
      or threatened, any notice to be given to the Corporation would reasonably
      be unlikely to reach its destination by the time notice by mail is deemed
      to have been given pursuant to this Section 14.1, such notice will be
      valid and effective only if delivered or sent via facsimile in accordance
      with this Section 14.1.

	14.2 	
      Notice to
Debentureholders

	 	(a) 	
      All notices to be given hereunder with respect to the
      Debentures will 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 with a copy to the Debenture Trustee and
      will be deemed to have been effectively given three days following the day
      of mailing. Accidental error or omission in giving notice or accidental
      failure to mail notice to any Debentureholder or the inability of the
      Corporation to give or mail any notice due to anything beyond the
      reasonable control of the Corporation will not invalidate any action or
      proceeding founded thereon.

	 	 	 
	 	(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
      Corporation will give such notice by publication at least once in an
      English language daily newspaper of general circulation in
  Canada.

	 	 	 
	 	(c) 	
      Any notice given to Debentureholders by publication will
      be deemed to have been given on the day on which publication has 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 will be
      sufficient notice to all holders of any persons interested in such
      Debenture.

	14.3 	
      Notice to Debenture
Trustee

Any notice to the Debenture Trustee under the provisions of
this Indenture will be valid and effective if delivered to the Debenture Trustee
at its office in the City of Toronto at TSX Trust Company, 200 University
Avenue, Suite 300, Toronto, Ontario M5H 4H1, Attention: Vice President, Trust
Services or if sent by facsimile to facsimile number 416-361-0470, Attention:
Manager, Corporate Trust, or if given by registered letter, postage prepaid, to
such office and so addressed and, if mailed, will be deemed to have been
effectively given three days following the mailing thereof. The Debenture
Trustee may from time to time notify the Corporation in writing of a change of
address which thereafter, until changed by like notice, will be the address of
the Debenture Trustee for all purposes of this Indenture. 

	14.4 	
      Mail Service Interruption

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

- 71 - 

	ARTICLE 15 
	CONCERNING THE DEBENTURE TRUSTEE

	15.1 	
      No Conflict of Interest

The Debenture Trustee represents to the Corporation that at the
date of execution and delivery by it of this Indenture, there exists no material
conflict of interest in the role of the Debenture Trustee as a fiduciary
hereunder but if, notwithstanding the provisions of this Section 15.1, such a
material conflict of interest exists, or hereafter arises, the validity and
enforceability of this Indenture, and the Debentures issued hereunder, will not
be affected in any manner whatsoever by reason only that such material conflict
of interest exists or arises but the Debenture Trustee will, within 90 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 15.2. 

	15.2 	
      Replacement of Debenture
Trustee

	 	(a) 	
      The Debenture Trustee may resign its trust and be
      discharged from all further duties and liabilities hereunder by giving to
      the Corporation 60 days’ notice in writing or such shorter notice as the
      Corporation may accept as sufficient. In the event of the Debenture
      Trustee resigning or being removed or being dissolved, becoming bankrupt,
      going into liquidation or otherwise becoming incapable of acting
      hereunder, the Corporation will forthwith appoint a new Debenture Trustee
      unless a new Debenture Trustee has already been appointed by the
      Debentureholders. Failing such appointment by the Corporation, the
      retiring Debenture Trustee or any Debentureholder may apply to a judge of
      the Superior Court of Justice, Commercial List on such notice as such
      judge may direct at the Corporation’s expense, for the appointment of a
      new Debenture Trustee but any new Debenture Trustee so appointed by the
      Corporation or by the Court will be subject to removal as aforesaid by the
      Debentureholders and the appointment of such new Debenture Trustee will be
      effective only upon such new Debenture Trustee becoming bound by this
      Indenture. Any new Debenture Trustee appointed under any provision of this
      Section 15.2 will be a Corporation authorized to carry on the business of
      a trust company in all of the Provinces of Canada. On any new appointment
      the new Debenture Trustee will be vested with the same powers, rights,
      duties, and responsibilities as if it had been originally named herein as
      Debenture Trustee.

	 	 	 
	 	(b) 	
      Any company into which the Debenture 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 Debenture Trustee will be a party, or any
      company succeeding to the corporate trust business of the Debenture
      Trustee will be the successor Debenture Trustee under this Indenture
      without the execution of any instrument or any further act. Nevertheless,
      upon the written request of the successor Debenture Trustee or of the
      Corporation, the Debenture Trustee ceasing to act will, on receipt of all
      its outstanding fees and disbursements, execute and deliver an instrument
      assigning and transferring to such successor Debenture Trustee, upon the
      terms herein expressed, all the rights, powers and trusts of the Debenture
Trustee so ceasing to act, and will duly assign, transfer and deliver all
property and money held by such Debenture Trustee to the successor Debenture
Trustee so appointed in its place. Should any deed, conveyance or instrument in
writing from the Corporation be required by any new Debenture 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 will on request of said new Debenture Trustee, be made,
executed, acknowledged and delivered by the Corporation. 

- 72 - 

	15.3 	
      Duties of Debenture
Trustee

In the exercise of the rights, duties and obligations
prescribed or conferred by the terms of this Indenture, the Debenture Trustee
will 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. The Debenture Trustee shall not be liable for the failure of
third parties to provide documents or other information in a timely manner. No
duty shall rest with the Debenture Trustee to determine compliance of any
transferor or transferee with applicable securities laws. The Debenture Trustee
shall be entitled to assume that all transfers are legal and proper. 

The Corporation acknowledges that the Debenture Trustee assumes
no responsibility for compliance by the Corporation or by the Debenture Trustee
with the laws of the United States including without limitation the corporate,
securities or tax laws applicable to the Corporation (collectively, the
“Corporation’s Laws”); and the Corporation agrees that all matters pertaining to
the rights and duties of the Debenture Trustee as the transfer agent, registrar
and disbursing agent of the Corporation hereunder shall be determined in
accordance with the laws of the Province of Quebec (other than its conflict of
laws rules) and the federal laws of Canada applicable therein (“Quebec Law”) and
without regard to the Corporation’s Laws, unless the Corporation’s Laws are of
mandatory application to such matters, in which case the Corporation’s Laws
shall govern only to the extent of such mandatory application. In the event that
the Corporation’s Laws are of mandatory application, the Corporation covenants
to promptly provide the Debenture Trustee with an opinion of Counsel describing
such mandatory application. Without limiting the generality of the foregoing,
except as hereinbefore provided, the Corporation agrees that the rights and
duties of the Debenture Trustee with respect to the registration of transfer of
Debentures, the duty of the DebentureTrustee to register a transfer of
Debentures and the assurances that the Trustee may require (including signature
guarantees) that each necessary endorsement on a Debenture certificate is
genuine and authorized shall in each case be governed by the applicable
provisions of an Act respecting the transfer of Securities and the
establishment of security entitlements (Québec), as in effect from time to
time.

The Debenture Trustee shall not be liable for or by reason of
any statements of fact or recitals in this Indenture or the Debenture
certificates (except the representation contained in Section 15.1 or in the
certificate of the Indenture Trustee on the Debenture certificates) or be
required to verify the same, but all such statements or recitals are and shall
be deemed to be made by the Corporation. 

Nothing herein contained shall impose any obligation on the
Debenture Trustee to see to or to require evidence of the registration or filing
(or renewal thereof) of this Indenture or any instrument ancillary or
supplemental hereto. 

- 73 - 

The Debenture Trustee is not to be appointed receiver or
receiver manager of the assets of the Corporation. 

	15.4 	
      Reliance Upon Declarations, Opinions,
  etc.

In the exercise of its rights, duties and obligations hereunder
the Debenture Trustee may, if acting in good faith, 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
Debenture Trustee to be furnished to it in the exercise of its rights and duties
hereunder, if the Debenture Trustee examines such statutory declarations,
opinions, reports or certificates and determines that they comply with Section
15.5, if applicable, and with any other applicable requirements of this
Indenture. The Debenture Trustee may nevertheless, in its discretion, require
further proof in cases where it deems further proof desirable. Without
restricting the foregoing, the Debenture Trustee may rely on an opinion of
Counsel satisfactory to the Debenture Trustee notwithstanding that it is
delivered by a firm which acts as solicitors for the Corporation. Proof of the
execution of an instrument in writing by any Debentureholder may be made by the
certificate of a notary, solicitor or commissioner for oaths, or other officer
with similar powers, that the person signing such instrument acknowledged to him
the execution thereof, or by an affidavit of a witness to such execution or in
any other manner which the Indenture Trustee may consider adequate and in
respect of a corporate Debentureholder, shall include a certificate of
incumbency of such Debentureholder together with a certified resolution
authorizing the person who signs such instrument to sign such instrument. 

	15.5 	
      Evidence and Authority to Debenture Trustee, Opinions,
      etc.

The Corporation will furnish to the Debenture 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
Corporation or the Debenture 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 Debenture Trustee at the request of or on the application of the
Corporation, forthwith if and when (a) such evidence is required by any other
Section of this Indenture to be furnished to the Debenture Trustee in accordance
with the terms of this Section 15.5, or (b) the Debenture Trustee, in the
exercise of its rights and duties under this Indenture, gives the Corporation
written notice requiring it to furnish such evidence in relation to any
particular action or obligation specified in such notice. 

Such evidence will consist of: 

	 	(a) 	
      a certificate made by any one officer or Director of the
      Corporation, stating that any such condition precedent has been complied
      with in accordance with the terms of this Indenture;

	 	 	 
	 	(b) 	
      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

	 	 	 
	 	(c) 	
      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 Auditor of the Corporation whom the Debenture Trustee for such
purposes hereby approves, that such condition precedent has been complied with
in accordance with the terms of this Indenture. 

- 74 - 

Whenever such evidence relates to a matter other than the
certificates 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 or officer or employee of the Corporation, it will be in
the form of a statutory declaration. Such evidence will be, so far as
appropriate, in accordance with the immediately preceding paragraph of this
Section. 

Each statutory declaration, certificate, opinion or report with
respect to compliance with a condition precedent provided for in the Indenture
will 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. 

The Corporation will furnish to the Debenture Trustee at any
time if the Debenture Trustee reasonably so requires, its certificate that the
Corporation 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 Corporation will, whenever the Debenture Trustee so
requires, furnish the Debenture Trustee with evidence by way of statutory
declaration, opinion, report or certificate as specified by the Debenture
Trustee as to any action or step required or permitted to be taken by the
Corporation or as a result of any obligation imposed by this Indenture. 

For certain payments made pursuant to this Indenture, the
Debenture Trustee, if so directed by the Corporation, will be required to make a
“reportable payment” or “withholdable payment” and in such cases the Debenture
Trustee may have the duty to act as a payor or withholding agent, respectively,
that is responsible for any tax withholding and reporting required under
Chapters 3, 4, 24, and 61 of the Code, as will be directed by the Corporation.
The Debenture Trustee will rely solely on the direction of the Corporation as to
which payments with respect to which it is the withholding agent are “reportable
payments” or “withholdable payments” under the Code and as to what withholding
and reporting is required. All parties to this Indenture shall provide an
executed IRS Form W-9 or appropriate IRS Form W-8 (or, in each case, any
successor form) to the Debenture Trustee prior to closing, and shall promptly
update any such form to the extent such form becomes obsolete or inaccurate in
any respect. The Debenture Trustee shall have the right to request from any
party to this Indenture, or any other person entitled to payment hereunder, any
additional forms, documentation or other information as may be reasonably
necessary for the Debenture Trustee to satisfy any reporting and withholding
obligations, delegated to it by the Corporation, under the Code. To the extent
any such forms to be delivered under this Section 15.5 are not provided prior to
or by the time the related payment is required to be made or are determined by the Corporation to be
incomplete and/or inaccurate in any respect, the Debenture Trustee may be
directed by the Corporation to withhold on any such payments hereunder to the
extent the Corporation determines withholding is required under Chapters 3, 4,
24 or 61 of the Code, and shall have no obligation to gross up any such payment.

- 75 - 

	15.6 	
      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 Debenture Trustee deems it necessary or desirable that a matter be proved or
established prior to taking or omitting any action hereunder. the Debenture
Trustee, if acting in good faith, may rely upon an Officer’s Certificate. 

	15.7 	
      Experts, Advisers and
Agents

The Debenture Trustee may: 

	 	(a) 	
      employ or retain and act and rely on the opinion or
      advice of or information obtained from any solicitor, auditor, valuer,
      engineer, surveyor, appraiser or other expert, whether obtained by the
      Debenture Trustee or by the Corporation, or otherwise, and will not be
      liable for acting, or refusing to act, in good faith on any such opinion
      or advice and may pay proper and reasonable compensation for all such
      legal and other advice or assistance as aforesaid; and

	 	 	 
	 	(b) 	
      employ such agents and other assistants as it may
      reasonably require for the proper discharge of its duties hereunder, and
      may pay reasonable remuneration for all services performed for it (and
      will be entitled to receive reasonable remuneration for all services
      performed by it from the Corporation) 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 Debenture Trustee may, but need not be, solicitors for the
      Corporation. The Corporation shall pay or reimburse the Debenture Trustee
      for any reasonable fees, expenses and disbursements of such agents,
      counsel or advisors retained under Section
15.7.

	15.8 	
      Debenture Trustee May Deal in
  Debentures

Subject to Sections 15.1 and 15.3, the Debenture 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
Corporation or otherwise, without being liable to account for any profits made
thereby. 

	15.9 	
      Investment of Monies Held by Debenture
    Trustee

Unless otherwise provided in this Indenture, any monies held by
the Debenture Trustee, which, under the trusts of this Indenture, may or ought
to be invested or which may be on deposit with the Debenture Trustee or which
may be in the hands of the Debenture Trustee, may be invested and reinvested in
the name or under the control of the Debenture Trustee in securities in which,
under the laws of the Province of Québec, trustees are authorized to invest
trust monies, provided that such securities are expressed to mature within two
years or such shorter period selected to facilitate any payments expected to be
made under this Indenture, after their purchase by the Debenture Trustee, and unless and until the
Debenture Trustee has declared the principal of and interest on the Debentures
to be due and payable, the Debenture Trustee will only invest such monies at the
Written Direction of the Corporation given in a reasonably timely manner.
Pending the investment of any monies as hereinbefore provided, such monies may
be deposited in the name of the Debenture Trustee in any Canadian chartered bank
or, with the consent of the Corporation, in the deposit department of the
Debenture Trustee or any other loan or trust company authorized to accept
deposits under the laws of Canada or any Province thereof at the rate of
interest, if any, then current on similar deposits. The Corporation will receive
such chartered bank’s or the Debenture Trustee’s (as the case may be) prevailing
rate for all monies held by it, as may change from time to time. 

- 76 - 

Unless and until the Debenture Trustee has declared the
principal of and interest on the Debentures to be due and payable, and except as
otherwise expressly provided herein, the Debenture Trustee will pay over to the
Corporation all interest, if any, received by the Debenture Trustee in respect
of any investments or deposits made pursuant to the provisions of this Section.

	15.10 	
      Debenture Trustee Not Ordinarily
  Bound

Except as provided in Section 8.2 and as otherwise specifically
provided herein, the Debenture Trustee will not, subject to Section 15.3 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 Corporation of any of
the obligations herein imposed upon the Corporation or of the covenants on the
part of the Corporation herein contained, nor in any way to supervise or
interfere with the conduct of the Corporation’s business, unless the Debenture
Trustee has 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 13, and then only after it has 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 Debenture Trustee be 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 Indenture Trustee and , in the absence of any
such notice, the Indenture Trustee may for all purposes of this Indenture
conclusively assume that no default has been made in the observance or
performance of any of the representations, debentures, covenants, agreements, or
conditions contained herein.

The Debenture Trustee shall not incur any liability or
responsibility whatever or be in any way responsible for the consequence of any
breach on the part of the Corporation of any of the covenants herein contained
or of any acts of any directors, officers, employees, trustees or servants of
the Corporation. 

	15.11 	
      Debenture Trustee Not Required to Give
    Security

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

	15.12 	
      Debenture Trustee Not Bound to Act on the
      Corporation’s Request

Except as in this Indenture otherwise specifically provided,
the Debenture Trustee will not be bound to act in accordance with any direction
or request of the Corporation until a duly authenticated copy of the instrument or resolution containing
such direction or request has been delivered to the Debenture Trustee, and the
Debenture Trustee will be empowered to act upon any such copy purporting to be
authenticated and believed by the Debenture Trustee to be genuine. Should the
Debenture Trustee reasonably request originals of the direction or request, they
shall be provided. 

- 77 - 

	15.13 	
      Conditions Precedent to Debenture Trustee’s
      Obligations to Act Hereunder

The obligation of the Debenture Trustee to commence or continue
any act, action or proceeding for the purpose of enforcing the rights of the
Debenture Trustee and of the Debentureholders hereunder will be conditional upon
the Debentureholders furnishing when required by notice in writing by the
Debenture Trustee, sufficient funds to commence or continue such act, action or
proceeding and an indemnity reasonably satisfactory to the Debenture Trustee to
protect and hold harmless the Debenture Trustee against the costs, charges and
expenses and liabilities to be incurred thereby and any loss and damage it may
suffer by reason thereof. 

None of the provisions contained in this Indenture will require
the Debenture 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 unless indemnified as aforesaid. 

The Debenture 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 Debenture
Trustee the Debentures held by them for which Debentures the Debenture Trustee
will issue receipts. 

	15.14 	
      Authority to Carry on
Business

The Debenture Trustee represents to the Corporation 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 all Provinces and Territories of Canada
but if, notwithstanding the provisions of this Section, it ceases to be so
authorized to carry on business, the validity and enforceability of this
Indenture and the securities issued hereunder will not be affected in any manner
whatsoever by reason only of such event but the Debenture Trustee will, within
90 days after ceasing to be authorized to carry on the business of trust company
in the Province of Québec, either become so authorized or resign in the manner
and with the effect specified in Section 15.2. 

	15.15 	
      Compensation and
Indemnity

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

- 78 - 

	 	(b) 	
      The Corporation hereby indemnifies and saves harmless the
      Debenture Trustee and its directors, officers, agents and employees (the
      “Indemnified Parties”) from and against any and all loss, damages,
      charges, expenses, claims, demands, actions or liability whatsoever which
      may be brought against the Debenture Trustee or which it may suffer or
      incur as a result of or arising out of the performance of its duties and
      obligations hereunder save only in the event of the gross negligent
      failure to act, or the wilful misconduct or bad faith of the Debenture
      Trustee. For greater certainty, the Corporation agrees to indemnify and
      save harmless the Indemnified Parties against and from any present and
      future taxes (other than income taxes), duties, assessments or other
      charges imposed or levied on behalf of any governmental authority having
      the power to tax in connection with the Indenture Trustee’s duties
      hereunder. In addition, the Corporation agrees to reimburse, indemnify and
      save harmless the Indemnified Parties for, against and from all legal fees
      and disbursements (on a substantial indemnity, or solicitor and client,
      basis) incurred by an Indemnified Party if the Corporation commences an
      action, or cross claims or counterclaims, against the Indemnified Party
      and the Indemnified Party is successful in defending such claim. This
      indemnity will survive the termination or discharge of this Indenture and
      the resignation or removal of the Debenture Trustee. The Debenture Trustee
      will notify the Corporation promptly of any claim for which it may seek
      indemnity. The Corporation will defend the claim and the Debenture Trustee
      will co-operate in the defence. The Debenture Trustee may have separate
      counsel and the Corporation will pay the reasonable fees and expenses of
      such Counsel. The Corporation need not pay for any settlement made without
      its consent, which consent will not be unreasonably withheld. This
      indemnity will survive the resignation or removal of the Debenture Trustee
      or the discharge of this Indenture.

	 	 	 
	 	(c) 	
      The Corporation need not reimburse any expense or
      indemnify against any loss or liability incurred by the Debenture Trustee
      through gross negligence or bad faith or wilful misconduct of the
      Debenture Trustee in the execution of its duties
  hereunder.

	15.16 	
      Anti-Money Laundering

	 	(a) 	
      The Corporation hereby represents to the Debenture
      Trustee that any account to be opened by, or interest to held by, the
      Debenture Trustee in connection with this Indenture, for or to the credit
      of such 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 the person signing the declaration hereto agrees to
      complete and execute forthwith a declaration in the Debenture Trustee’s
      prescribed form as to the particulars of such third party.

	 	 	 
	 	(b) 	
      The Debenture 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 Debenture Trustee, in
      its sole judgment, determines that such act might cause it to be in
      non-compliance with any applicable anti-money laundering, anti-terrorist
      or economic sanctions legislation, regulation or guideline. Further,
      should the Debenture 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, anti-terrorist
      or economic sanctions legislation, regulation or guideline, then it shall
      have the right to resign on 10 days written notice to the other parties to this Indenture, provided (i)
that the Debenture Trustee’s written notice shall describe the circumstances of
such non-compliance; and (ii) that if such circumstances are rectified to the
Debenture Trustee's satisfaction within such 10 day period, then such
resignation shall not be effective. 

- 79 - 

	15.17 	
      Acceptance of Trust

The Debenture 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 will
from time to time be Debentureholders, subject to all the terms and conditions
herein set forth. 

	15.18 	
      Privacy

	 	(a) 	
      The parties acknowledge that the Debenture 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 Debenture Trustee manage its servicing
      relationships with such individuals;

	 	 	 
	 	(iii) 	
      to meet the Debenture Trustee’s legal and regulatory
      requirements; and

	 	 	 
	 	(iv) 	
      if social insurance numbers are collected by the
      Debenture Trustee, to perform tax reporting and to assist in verification
      of an individual’s identity for security
purposes.

	 	(b) 	
      The Corporation acknowledges and agrees that the
      Debenture 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 Debenture
      Trustee shall make available on its website, tsxtrust.com or upon request,
      including revisions thereto. The Debenture 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. Further, the Corporation agrees that it shall not
      provide or cause to be provided to the Debenture Trustee any personal
      information relating to an individual who is not a party to this Indenture
      unless that party has assured itself that such individual understands and
      has consented to the aforementioned uses and
disclosures.

	15.19 	
      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 Section. 

- 80 - 

	ARTICLE 16 
	SUPPLEMENTAL INDENTURES 

	16.1 	
      Supplemental Indentures

Subject to any approval that may be required pursuant to the
requirements of the TSXV or such other exchange on which the Common Shares are
listed and posted for trading, from time to time the Debenture Trustee and, when
authorized by a resolution of the Directors, the Corporation, may, and they will
when required by this Indenture, execute, acknowledge and deliver by their
proper officers deeds or indentures supplemental hereto which thereafter will
form part hereof, for any one or more of the following purposes: 

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

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

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

	 	 	 
	 	(d) 	
      giving effect to any Extraordinary Resolution passed as
      provided in Article 13; and

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

Unless this Indenture or the supplemental indenture requires
the consent or concurrence of Debentureholders by Extraordinary Resolution, the
consent or concurrence of Debentureholders will not be required in connection
with the execution, acknowledgement or delivery of a supplemental indenture. The
Corporation and the Debenture Trustee, without the consent or approval of the
Debentureholders, 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. The Debenture Trustee will have the right
to request a legal opinion regarding matters of United States law or the
issuance of Debentures into the United States prior to or concurrently with
making such amendments. Further, the Corporation and the Debenture Trustee may
without the consent or concurrence of the Debentureholders by supplemental
indenture or otherwise, make any changes or corrections in this Indenture which
it has been advised by Counsel are required for the purpose of curing or
correcting any ambiguity or defective or inconsistent provisions or clerical
omissions or mistakes or manifest errors contained herein or in any indenture supplemental hereto or any Written Direction
of the Corporation provided for the issue of Debentures, providing that in the
opinion of the Debenture Trustee (relying upon an opinion of Counsel) the rights
of the Debentureholders are in no way prejudiced thereby. 

- 81 - 

	ARTICLE 17 
	EXECUTION AND FORMAL DATE; RIGHTS OF RESCISSION;
    
	CONCERNING THIS TRUST INDENTURE

	17.1 	
      Execution

This Indenture may be executed and delivered by facsimile and
in counterparts, each of which when so executed and delivered will be deemed to
be an original and such counterparts together constitute one and the same
instrument and notwithstanding their date of execution they are deemed to be
dated as of the date hereof. 

	17.2 	
      Formal Date

For the purpose of convenience this Indenture may be referred
to as bearing the formal date of July •, 2017 irrespective of the actual date of
execution hereof. 

	17.3 	
      Concerning this Trust
Indenture

To the extent of any conflict between the description of the
Debentures in any term sheet, prospectus or other offering document which
qualifies for distribution any Debentures governed by this Trust Indenture, the
terms and conditions of this Trust Indenture shall be take precedence and
govern. 

[Remainder of this page intentionally left blank.] 

IN WITNESS WHEREOF the parties hereto have executed this
Indenture as of the date first written above. 

	INTELGENX TECHNOLOGIES CORP. 
	  	 
	Per: 	 
	                 	Name: 
		Title: 
	 	 
	  	  
	TSX TRUST COMPANY 
	  	 
	Per: 	 
		Name: 
		Title: 
	 	 
	  	 
	Per: 	 
		Name: 
	                 	Title: 

	SCHEDULE A 
	  
	TO THE TRUST INDENTURE BETWEEN 
	INTELGENX TECHNOLOGIES CORP. AND 
	TSX TRUST COMPANY 
	FORM OF DEBENTURE 

This Debenture is a Global Debenture within the meaning of
the Indenture herein referred to and is registered in the name of a Depository
or a nominee thereof. This Debenture may not be transferred to or exchanged for
Debentures registered in the name of any Person other than the Depository or a
nominee thereof and no such transfer may be registered except in the limited
circumstances described in the Indenture. Every Debenture authenticated and
delivered upon registration of, transfer of, or in exchange for, or in lieu of,
this Debenture shall be a Global Debenture subject to the foregoing, except in
such limited circumstances described in the Indenture. 

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

	No. • 	CUSIP • 
	  	ISIN CA • 

INTELGENX TECHNOLOGIES CORP. 

(A corporation existing under the laws of Delaware) 

8.00% Convertible Unsecured Subordinated Debentures Due June 30,
2020 

	Date of Issue: •, 2017 	Maturity Date: June 30, 2020 
	Registered Holder: • 	  

INTELGENX TECHNOLOGIES CORP. (the “Corporation”)
for value received hereby acknowledges itself indebted and, subject to the
provisions of the Trust Indenture (the “Indenture”) dated July •, 2017
between the Corporation and TSX Trust Company (the “Debenture Trustee”),
promises to pay to the registered holder hereof on the maturity date of this
Debenture, as hereinafter described, or on such earlier date as the principal
amount hereof may become due in accordance with the provisions of the
Indenture, the principal amount of in lawful money of Canada, as may be adjusted as set out in
Exhibit 1, on presentation and surrender of this Debenture at the main branch of
the Debenture Trustee in Toronto, Ontario in accordance with the terms of the
Indenture. 

A-2 

$• 

This Debenture is one of the 8.00% Convertible Unsecured
Subordinated Debentures (referred to herein as the “Debentures”) of the
Corporation issued or issuable under the provisions of the Indenture. Reference
is hereby expressly made to the Indenture for a description of the terms and
conditions upon which the Debentures are to be issued and held and the rights
and remedies of the holders of the Debentures and of the Corporation and of the
Debenture 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 maturity date (the “Maturity Date”) for the
Debentures will be June 30, 2020. The Debentures will bear interest at the rate
of 8.00% per annum, payable in equal semi-annual payments, in arrears, on June
30 and December 31 in each year, the first such payment to fall due on December
31, 2017, 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
semi-annually. 

Interest hereon will be payable (less applicable Withholding
Taxes, if any) by cheque mailed by prepaid ordinary mail or by electronic
transfer of funds to the registered holder hereof and, subject to the provisions
of the Indenture, the mailing of such cheque or the sending of the electronic
transfer of funds, as the case may be, will, to the extent of the sum
represented thereby (plus the amount of any tax withheld or deducted and
remitted to the proper tax authority), satisfy and discharge all liability for
interest on this Debenture. 

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. 

The principal of this Debenture is convertible, at the option
of the holder hereof, upon surrender of this Debenture at the principal office
of the Debenture Trustee in Toronto, Ontario, at any time and prior to the close
of business on the Maturity Date or, if this Debenture is called for redemption
on or prior to such date, then up to but not after the close of business on the
last Business Day immediately preceding the date specified for redemption of
this Debenture, into Common Shares at a conversion price of $1.35 (the
“Conversion Price”) per Common Share, being a rate of 740 Common Shares
for each $1,000 principal amount of Debentures, all subject to the terms and
conditions and in the manner set forth in the Indenture. Notwithstanding the
foregoing, no Debenture may be converted during the last five Business Day
preceding an Interest Payment Date or the Maturity Date. Holders of Debentures
converting their Debentures will receive accrued and unpaid interest from and
including the last Interest Payment Date (or the date of issue if there has not
been an Interest Payment Date) to but excluding the Date of Conversion. The
Indenture makes provision for the adjustment of the Conversion Price in the
events therein specified. No fractional Common Shares will be issued on any
conversion but, in lieu thereof, the Corporation will satisfy such fractional
interest by a cash payment equal to the fractional interest multiplied by the Current Market Price of
the Common Shares on the Date of Conversion determined in accordance with the
Indenture. 

A-3 

This Debenture may be redeemed at the option of the Corporation
on the terms and conditions set out in the Indenture at the redemption price
therein and herein set out provided that this Debenture is not redeemable prior
to [June 30, 2018] (the “First Call Date”) except in the event of
the satisfaction of certain conditions after a Change of Control has occurred.
On or after the First Call Date and prior to [June 30, 2019] (the
“Second Call Date”), the Debentures may be redeemed at the option of the
Corporation at the redemption price equal to the principal amount of the
Debentures (the “Redemption Price”) provided the Current Market Price on
the date on which the notice of redemption is given is at least 125% of the
Conversion Price and, in addition thereto, at the time of redemption, the
Corporation will pay to the holder accrued and unpaid interest on the terms and
conditions described in the Indenture. On or after the Second Call Date and
prior to the Maturity Date, the Debentures may be redeemed at the option of the
Corporation at the Redemption Price, irrespective of the Current Market Price of
the Common Shares, and, in addition thereto, at the time of redemption, the
Corporation will pay to the holder accrued and unpaid interest on the terms and
conditions described in the Indenture. The Corporation may, on notice as
provided in the Indenture, at its option and subject to any applicable
regulatory approval, elect to satisfy its obligation to pay all or a portion of
the applicable Redemption Price by the issue of that number of Freely Tradeable
Common Shares obtained by dividing the applicable Redemption Price by 95% of the
Current Market Price of the Common Shares on the Redemption Date. 

Upon the occurrence of a Change of Control of the Corporation,
the Corporation is required to make an offer to purchase all the Debentures at a
price equal to 101% of the principal amount of such Debentures plus accrued and
unpaid interest up to, but excluding, the date the Debentures are so repurchased
(the “Offer”). If 90% or more of the aggregate principal amount of the
Debentures issued under the Indenture outstanding on the date the Corporation
provides notice of a Change of Control to the Debenture Trustee have been
tendered for purchase pursuant to the Offer, the Corporation has the right to
redeem all the remaining outstanding Debentures at the same price. 

The Corporation may, on notice as provided in the Indenture, at
its option and subject to any applicable regulatory approval, elect to satisfy
the obligation to repay all or any portion of the principal amount of this
Debenture due on the Maturity Date by the issue of that number of Freely
Tradeable Common Shares obtained by dividing the principal amount of this
Debenture to be paid for in Common Shares pursuant to the exercise by the
Corporation of the Common Share Repayment Right by 95% of the Current Market
Price on the Maturity Date. 

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 of all Senior Indebtedness, whether outstanding at the date of the
Indenture or thereafter created, incurred, assumed or guaranteed. 

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

The Indenture contains provisions making binding upon all
holders of Debentures outstanding thereunder 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, which resolutions or instruments may have the
effect of amending the terms of this Debenture or the Indenture. 

A-4 

All dollar amounts expressed in this Debenture are in lawful
money of Canada and all payments required to be made hereunder will be made in
Canadian dollars. 

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

If any of the provisions of this Debenture are inconsistent
with the provisions of the Indenture, the provisions of the Indenture will take
precedence and will govern. Capitalized words or expressions used in this
Debenture, unless otherwise defined herein, have the meaning attributed thereto
in the Indenture. 

[Remainder of this page intentionally left blank.] 

A-5 

IN WITNESS WHEREOF IntelGenx Technologies Corp. has
caused this Debenture to be signed by its duly authorized officer as of the
•th day of •. 

	INTELGENX TECHNOLOGIES CORP. 
	 
	Per: 	 
	Name: 	 
	Title: 	 

DEBENTURE TRUSTEE’S CERTIFICATE 

This Debenture is one of the 8.00% Convertible Unsecured
Subordinated Debentures due June 30, 2020 of IntelGenx Technologies Corp.
referred to in the Indenture within mentioned. 

	TSX TRUST COMPANY 
	  	 
	Per: 	 
		Authorized Signatory
  

A-6 

FORM OF ASSIGNMENT 

FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto _______________, whose address and social insurance
number, if applicable, are set forth below, this Debenture (or $
__________principal amount hereof*) of IntelGenx Technologies Corp. standing in
the name(s) of the undersigned in the register maintained with respect to such
Debenture and does hereby irrevocably authorize and direct the Debenture Trustee
to transfer such Debenture in such register, with full power of substitution in
the premises. All dollar amounts expressed in this Form of Assignment are in
lawful money of Canada. 

	Dated: 	 	 
	Address of Transferee: 	 
		 	(Street Address, City,
      Province/State and Postal/Zip Code and Country) 
		 	 	 
	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 will be $1,000 or an integral multiple thereof )
      to be transferred.

The signature(s) to this assignment must correspond with the
name(s) as written upon the face of this [8.00] % Debenture in every
particular without alteration or any change whatsoever. The signature(s) must be
guaranteed by one of the following methods: 

	2. 	
      Canada and the USA: A Medallion Signature
      Guarantee obtained from a member of an acceptable Medallion Signature
      Guarantee Program (STAMP, SEMP, 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”.

	 	 
	3. 	
      Canada: A Signature Guarantee obtained from a
      major Canadian Schedule 1 chartered bank. The Guarantor must affix a stamp
      bearing the actual words “Signature Guaranteed”. Signature Guarantees are
      not accepted from Treasury Branches, Credit Unions or Caisses Populaires
      unless they are members of a Medallion Signature Guarantee
  Program.

	 	 
	4. 	
      Outside North America: For holders located outside
      North America, present the certificate(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.

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

A-7 

Signature of Guarantor 

	 	 	 
	Authorized Officer 	 	Signature of transferring registered holder
  
	 	 	 
	 	 	 
	Name of Institution 	 	  

EXHIBIT 1 

8.00% Convertible Unsecured Subordinated Debentures due [June
30, 2020] 

CUSIP: •/ISIN: CA • 

	Initial Principal Amount 	$• 
	Authorization:
      ____________________________________________________	  

ADJUSTMENTS 

	Date of 
Registration
	Amount of
      
Increase 	Amount of
      
Decrease 	New Principal
      
Amount 	Authorization 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	SCHEDULE B 
	  
	  
	  
	TO THE TRUST INDENTURE BETWEEN 
	INTELGENX TECHNOLOGIES CORP. AND 
	TSX TRUST COMPANY 
	  
	FORM OF REDEMPTION NOTICE 
	  
	INTELGENX TECHNOLOGIES CORP. 
	8.00% CONVERTIBLE UNSECURED SUBORDINATED
      DEBENTURES 
	REDEMPTION NOTICE 

	TO: 	Holders of 8.00% Convertible Unsecured
      Subordinated Debentures (the “Debentures”) of INTELGENX
      TECHNOLOGIES CORP. (the “Corporation”) 
	 	 
	Note: 	All capitalized terms used herein have the
      meaning attributed thereto in the Indenture mentioned below, unless
      otherwise indicated. 

Notice is hereby given pursuant to Section 4.3 of the Trust
Indenture (the “Indenture”) dated July •, 2017 between the Corporation
and TSX Trust Company (the “Debenture Trustee”), that the aggregate
principal amount of $• of the $• of Debentures outstanding will be redeemed as
of • (the “Redemption Date”), upon payment of a redemption amount of $•
per $1,000 principal amount of Debentures (the “Redemption Price”), and
all accrued and unpaid interest hereon to but excluding the Redemption Date
(less applicable Withholding Taxes, if any) (collectively, the “Total
Redemption Price”). All dollar amounts expressed in this Redemption Notice
are in lawful money of Canada and all payments required to be made hereunder
will be made in Canadian dollars. 

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

	 	TSX Trust Company 
	 	200 University Avenue, Suite 300 
	 	Toronto, Ontario M5H 4H1 
	 	  
	 	Attention: Vice President, Trust Services

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

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

B-2 

No fractional Common Shares will be delivered upon the exercise
by the Corporation of the above-mentioned redemption right but, in lieu thereof,
the Corporation will pay the cash equivalent thereof determined on the basis of
the Current Market Price of Common Shares on the Redemption Date (less
applicable Withholding Taxes, if any). 

In connection with the above, the Corporation will, on the
Redemption Date, make the delivery to the Debenture Trustee or will arrange
through its transfer agent for the Common Shares solely in relation to the
issuance of the Common Shares, at the above-mentioned corporate trust office,
for delivery to and on account of the holders upon presentation and surrender of
their Debentures for payment, certificates or facilitate the settlement of
electronic deposits representing the Freely Tradeable Common Shares to which
holders are entitled together with the cash equivalent in lieu of fractional
Common Shares, cash for all accrued and unpaid interest up to, but excluding,
the Redemption Date, and, if only a portion of the Debentures are to be redeemed
by issuing Freely Tradeable Common Shares, cash representing the balance of the
Redemption Price. 

	Date: 	 
	  	 
	  	 
	INTELGENX TECHNOLOGIES CORP. 
	  	 
	Per: 	 
		Name: 
		Title:

	SCHEDULE C 
	 
	TO THE TRUST INDENTURE BETWEEN 
	INTELGENX TECHNOLOGIES CORP. AND 
	TSX TRUST COMPANY 
	 
	FORM OF MATURITY NOTICE 
	 
	INTELGENX TECHNOLOGIES CORP. 
	 
	8.00% CONVERTIBLE UNSECURED SUBORDINATED
      DEBENTURES 
	MATURITY NOTICE 

	TO: 	Holders of 8.00% Convertible Unsecured
      Subordinated Debentures (the “Debentures”) of INTELGENX
      TECHNOLOGIES CORP. (the “Corporation”) 
	 	 
	Note: 	All capitalized terms used herein have the
      meaning attributed thereto in the Indenture mentioned below, unless
      otherwise indicated. 

Notice is hereby given pursuant to Section 4.9(b) of the Trust
Indenture (the “Indenture”) dated July •, 2017 between the Corporation
and TSX Trust Company, as trustee (the “Debenture Trustee”), that the
Debentures are due and payable as of June 30, 2020 (the “Maturity Date”)
and the Corporation elects to satisfy its obligation to pay to holders of
Debentures $• of the $• principal amount of the Debentures outstanding on the
Maturity Date by issuing and delivering to the holders that number of Freely
Tradeable Common Shares equal to the number obtained by dividing such principal
amount of the Debentures by 95% of the Current Market Price of Common Shares on
the Maturity Date. 

No fractional Common Shares will be delivered on exercise by
the Corporation of the above mentioned repayment right but, in lieu thereof, the
Corporation will pay the cash equivalent thereof determined on the basis of the
Current Market Price of Common Shares on the Maturity Date (less applicable
Withholding Taxes, if any). 

In connection with the above, the Corporation will, on the
Maturity Date, make delivery to the Debenture Trustee or will arrange through
its transfer agent for Common Shares solely in relation to the issuance of the
Common Shares, at its principal corporate trust office in Toronto, Ontario for
delivery to and on account of the holders upon presentation and surrender of
their Debentures for payment, certificates or facilitate the settlement of
electronic deposits representing the Freely Tradeable Common Shares to which
holders are entitled together with the cash equivalent in lieu of fractional
Common Shares, cash for all accrued and unpaid interest up to, but excluding,
the Maturity Date and if only a portion of the Debentures are to be repaid by
issuing Freely Tradeable Common Shares, cash representing the balance of the
principal amount and premium (if any) due on the Maturity Date. 

C-2 

	Date: 	 
	  	 
	  	 
	INTELGENX TECHNOLOGIES CORP. 
	  	 
	Per: 	 
		Name: 
		Title:

	SCHEDULE D 
	 
	TO THE TRUST INDENTURE BETWEEN 
	INTELGENX TECHNOLOGIES CORP. AND 
	TSX TRUST COMPANY 
	 
	FORM OF COMMON SHARE INTEREST PAYMENT ELECTION
      NOTICE 
	 
	INTELGENX TECHNOLOGIES CORP. 
	 
	8.00% CONVERTIBLE UNSECURED SUBORDINATED
      DEBENTURES 
	COMMON SHARE INTEREST PAYMENT ELECTION NOTICE
  

	TO: 	Holders of 8.00% Convertible Unsecured
      Subordinated Debentures (the “Debentures”) of INTELGENX
      TECHNOLOGIES CORP. (the “Corporation”) 
	 	 
	Note: 	All capitalized terms used herein have the
      meaning attributed thereto in the Indenture mentioned below, unless
      otherwise indicated. 

Notice is hereby given pursuant to Section 10.1(a) of the Trust
Indenture (the “Indenture”) dated July •, 2017 between the Corporation
and TSX Trust Company, as trustee (the “Debenture Trustee”), that as of •
(the “Interest Payment Date”), interest on the Debentures in respect of
the interest period commencing on • and ending on • (the “Interest
Obligation”) will be due and payable to the Debentureholders under the terms
of the Indenture. The Corporation elects to satisfy its obligation to pay to
holders of Debentures on the Interest Payment Date the Interest Obligation
through the issuance and delivery to the Debentureholders, for each $40 of
interest amount, that number of Freely Tradeable Common Shares obtained by
dividing each $40 of interest amount by the Current Market Price of the Common
Share on the date before the public announcement by the Corporation of its
intention to satisfy its interest Obligation in Common Share, such amount to be
subject to required withholdings and rounding in accordance with the terms and
conditions of the Indenture. 

No fractional Common Shares will be delivered on exercise by
the Corporation of the above mentioned right but, in lieu thereof, the
Corporation will pay the cash equivalent thereof determined on the basis of the
Current Market Price of Common Shares on the Interest Payment Date (less
applicable Withholding Taxes, if any). 

	Date: 	 
	  	 
	  	 
	INTELGENX TECHNOLOGIES CORP. 
	  	 
	Per: 	 
		Name: 
		Title:

	SCHEDULE E 
	  
	TO THE TRUST INDENTURE BETWEEN 
	INTELGENX TECHNOLOGIES CORP. AND 
	TSX TRUST COMPANY 
	  
	FORM OF NOTICE OF CONVERSION 
	CONVERSION NOTICE 

	TO: 	INTELGENX TECHNOLOGIES CORP. 	  
	AND 	TSX TRUST COMPANY, as Debenture Trustee
    	  
	TO: 	  	  
	 	 	 
	
      Note: 
	
      All capitalized terms used herein have the meaning
      attributed thereto in the Trust Indenture between INTELGENX TECHNOLOGIES
      CORP. and TSX Trust Company dated July •, 2017 (the “Indenture”),
      unless otherwise indicated. 

The undersigned registered holder of 8.00% Convertible
Unsecured Subordinated Debentures bearing Certificate No.
______________irrevocably elects to convert such Debentures (or
$_______________principal amount thereof) in accordance with the terms of the
Indenture referred to in such Debentures and tenders herewith the Debentures
and, if applicable, directs that the Common Shares of INTELGENX TECHNOLOGIES
CORP. issuable upon a conversion (or such other securities or property required
to be delivered as provided by the terms of the Indenture) be issued and/or
delivered to the person indicated below. (If Common Shares or other securities
are to be issued in the name of a person other than the holder, all requisite
transfer taxes will be tendered by the undersigned). 

	 	 	 
	Dated 	 	(Signature of Registered Holder)

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

All dollar amounts expressed in this Conversion Notice are in
lawful money of Canada. 

	
      NOTE: 
	
      If Common Shares are to be issued in the name of a person
      other than the holder, the signature will be guaranteed by a Canadian
      Schedule I chartered bank, a trust company or by a member of an acceptable
      Medallion Guarantee Program. The Guarantor must affix a stamp bearing the
      actual words: “SIGNATURE GUARANTEED”, “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 a
      certificate of incumbency, will also be required to accompany the transfer
      unless there is a “SIGNATURE & AUTHORITY TO SIGN GUARANTEE” stamp
      affixed to the form of transfer. 

E-2 

(Print name in which Common Shares are to be issued, delivered
and registered) 

	Name: 
	  
	 
	(Address) 
	  
	 
	(City, Province/State, Postal Code/Zip Code and
      Country) 
	 
	Name of guarantor: 	 
	 	 
	Authorized signature:Exhibit

Exhibit 10.1
Execution Version

JOINDER AGREEMENT NO. 2
THIS JOINDER AGREEMENT NO. 2, dated as of June 29, 2017 (this “Agreement”), by and among CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH (in such capacity, the “Funding Incremental Term Loan Lender”), POST HOLDINGS, INC., a Missouri corporation (the “Borrower”), the GUARANTORS party hereto, and BARCLAYS BANK PLC, as Administrative Agent.
RECITALS:
WHEREAS, reference is hereby made to (a) the Amended and Restated Credit Agreement, dated as of March 28, 2017 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”; the terms defined therein and not otherwise defined herein being used herein as therein defined), by and among the Borrower, the Lenders party thereto from time to time and Barclays Bank PLC, as Administrative Agent and (b) Joinder Agreement No. 1, dated as of May 24, 2017 (“Joinder Agreement No. 1”), by and among Credit Suisse AG, Cayman Islands Branch, as the Funding Incremental Term Loan Lender thereunder, the Borrower, the Guarantors party thereto and Barclays Bank, PLC, as Administrative Agent pursuant to which the Series A Incremental Term Loans (such loans, as defined therein, there “Existing Series A Incremental Term Loans”) were extended to the Borrower on May 24, 2017 (such date, the “Joinder Agreement No. 1 Effective Date”) in accordance with the terms and conditions set forth in Joinder Agreement No. 1;
WHEREAS, subject to the terms and conditions of the Credit Agreement, the Borrower may request new Incremental Term Loan Commitments by entering into one or more Joinder Agreements with Incremental Term Loan Lenders; 
WHEREAS, pursuant to Section 2.14 of the Credit Agreement, (a) the Borrower has requested an Incremental Term Loan Commitment with an Increased Amount Date which is the Joinder Agreement No. 2 Effective Date referred to below in order to finance its pending acquisition of Latimer Newco 2 Limited (the “Pending Acquisition”) pursuant to that certain Agreement for the Sale and Purchase of the Entire Issued Share Capital of Latimer Newco 2 Limited, dated as of April 18, 2017 (such date, the “Acquisition Agreement Date”), (b) any Incremental Term Loans, if made on terms identical to any existing Series of Incremental Term Loans, may constitute a part of such existing Series of Incremental Term Loans and (c) the Borrower has requested that the Incremental Term Loans to be funded pursuant to this Agreement (such loans, the “Tack-On Series A Incremental Term Loans”) be treated as part of the same Series as the Existing Series A Incremental Term Loans and that the Tack-On Series A Incremental Term Loans be fungible (for United States federal income tax purposes) with the Existing Series A Incremental Term Loans; 

1

 

WHEREAS, pursuant to Section 1.09(c) of the Credit Agreement, the Borrower has made an LCA Election with respect to the Pending Acquisition;
WHEREAS, subject to the terms and conditions of the Credit Agreement, this Agreement may, without the consent of any other Lenders, effect such amendments to the Credit Agreement and the other Loan Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of Section 2.14 of the Credit Agreement; and
WHEREAS, the Funding Incremental Term Loan Lender hereby agrees to commit to provide the Tack-On Series A Incremental Term Loans in the amount set forth on Schedule A annexed hereto (the amount set forth on Schedule A annexed hereto, the “Incremental Term Loan Commitment”).
NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as follows:
The Funding Incremental Term Loan Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents (including Joinder Agreement No. 1), together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and that it is sophisticated with respect to decisions to make loans similar to those contemplated to be made hereunder and it is experienced in making loans of such type; (ii) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender or Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.
The Funding Incremental Term Loan Lender hereby agrees to provide the Tack-On Series A Incremental Term Loans on the terms and subject to the conditions set forth below.  The Incremental Term Loan Commitments of the Funding Incremental Term Loan Lender shall terminate in its entirety on the Joinder Agreement No. 2 Effective Date (after giving effect to the incurrence of the Tack-On Series A Incremental Term Loans). 
		
	1.
	Incremental Term Loan Commitment.  The effectiveness of this Agreement and the obligation of the Funding Incremental Term Loan Lender to fund the Tack-On Series A Incremental Term Loans hereunder are subject to the satisfaction of the following conditions (the date on which such conditions are satisfied, the “Joinder Agreement No. 2 Effective Date”):

2

 

(a)  no Default or Event of Default under Section 8.01(f) or Section 8.01(g) of the Credit Agreement shall exist immediately before or immediately after giving effect to the proposed Borrowing contemplated hereby, the extensions of credit to be made on the Increased Amount Date and the application of the proceeds thereof;
(b)  the Borrower shall be in pro forma compliance with (i) the covenant set forth in Section 7.11 of the Credit Agreement as of the Acquisition Agreement Date, (ii) a Consolidated Leverage Ratio not to exceed 6.50:1.00 as of the Acquisition Agreement Date and (iii) a Senior Secured Leverage Ratio not to exceed 3.00:1.00 as of the Acquisition Agreement Date; 
(c)  the representations and warranties of the Borrower and each other Loan Party contained in Sections 5.01(a), 5.01(b), 5.02(a), 5.02(b)(i), 5.14, 5.19, 5.20, 5.21, 5.22 (other than the first or second sentence thereof) and 5.23 of the Credit Agreement shall be true and correct in all material respects as of the Joinder Agreement No. 2 Effective Date to the same extent as though made as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; provided that any representation and warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects; 
(d)  all costs, fees, expenses (including, without limitation, reasonable and invoiced out-of-pocket legal fees and expenses and recording taxes and fees) and other compensation contemplated by that certain Engagement Letter, dated May 10, 2017, among the Borrower and the Arrangers and that certain Fee Letter, dated May 10, 2017, between the Borrower and Credit Suisse Securities (USA) LLC, in each case, payable to the Arrangers, the Administrative Agent and the Funding Incremental Term Loan Lender on the Increased Amount Date and invoiced prior to such date shall, upon the initial borrowing of the Tack-On Series A Incremental Term Loans, have been, or will be substantially simultaneously, paid (which amounts may be offset against the proceeds of the Tack-On Series A Incremental Term Loans); and
(e)  the Administrative Agent’s receipt of the following, each of which shall be originals, facsimiles or “pdf” or similar electronic format (followed promptly by originals) unless otherwise specified:
(i)  an opinion from (A) Lewis Rice LLC, counsel to the Loan Parties, and (B) local or other counsel in each of the jurisdictions listed on Schedule B hereto, in each case as reasonably requested by the Administrative Agent, in the case of each of clauses (A) and (B), in form and substance reasonably satisfactory to the Administrative Agent;

3

 

(ii)  such certificates of resolutions or other action, incumbency certificates and/or other certificates, each properly executed by Responsible Officers (including, solely for purposes of this Section 1(e)(ii), the secretary or assistant secretary of a Loan Party) of each Loan Party, as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer (including, solely for purposes of this Section 1(e)(ii), the secretary or assistant secretary of a Loan Party) thereof authorized to act as a Responsible Officer (including, solely for purposes of this Section 1(e)(ii), the secretary or assistant secretary of a Loan Party) in connection with this Agreement;
(iii)  a certificate executed by the Chief Financial Officer of the Borrower as to the solvency of the Borrower and its Subsidiaries (taken as a whole) on the Increased Amount Date after giving effect to the transactions contemplated hereby;
(iv)  a Committed Loan Notice executed by a Responsible Officer of the Borrower in respect of the Tack-On Series A Incremental Term Loans in accordance with Section 2.02 of the Credit Agreement;
(v) the Borrower shall have paid all accrued and unpaid interest on the Existing Series A Incremental Term Loans up to but not including the Joinder No. 2 Effective Date;
(vi)  a certificate executed by a Responsible Officer (including, solely for purposes of this Section 1(e)(vi), the secretary of the Borrower) of the Borrower as to the compliance with clauses (a), (b) and (c) of this Section 1 on the respective dates as set forth therein; and
(vii)  for each Mortgaged Property, a Flood Determination Form, Borrower Notice and Evidence of Flood Insurance, as applicable.
As used in this Agreement, “Arrangers” means each of Credit Suisse Securities (USA) LLC (together with its affiliates), Barclays Bank PLC, BMO Capital Markets Corp., CoBank, ACB, Coöperatieve Rabobank U.A., New York Branch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and any of its designated affiliates, HSBC Securities (USA) Inc., JPMorgan Chase Bank, N.A. and any of its designated affiliates, Merrill, Lynch, Pierce, Fenner & Smith Incorporated and any of it designated affiliates, Morgan Stanley Senior Funding, Inc., Nomura Securities International, Inc., PNC Bank Capital Markets, RBC Capital Markets,1 SunTrust Robinson Humphrey, Inc., UBS Securities LLC and Wells Fargo Securities, LLC.

____________
1 RBC Capital Markets is a brand name for the capital markets business of Royal Bank of Canada and its affiliates.

4

 

		
	2.
	Applicable Rate.  As set forth in Joinder Agreement No. 1 with respect to the Existing Series A Incremental Term Loans, (a) the Applicable Rate for the Tack-On Series A Incremental Term Loans shall mean, as of any date of determination, 1.25% per annum for any Base Rate Loans that are Tack-On Series A Incremental Term Loans and 2.25% per annum for any Eurodollar Rate Loans that are Tack-On Series A Incremental Term Loans; and (b)notwithstanding anything herein or in the Credit Agreement to the contrary, at no time will the Eurodollar Rate in respect of the Tack-On Series A Incremental Term Loans be deemed to be less than 0.00% per annum. 

		
	 3.
	Principal Payments.

(a)  Amortization.  The Borrower shall make principal payments on the Series A Incremental Term Loans (including the Tack-On Series A Incremental Term Loans) in installments on the dates and in the amounts set forth below:
	
		
	(A) 
Payment 
Date
	(B) 
Scheduled 
Repayment of 
Series A Incremental Term Loans

	September 30, 2017
	$5,500,000

	December 31, 2017
	$5,500,000

	March 31, 2018
	$5,500,000

	June 30, 2018
	$5,500,000

	September 30, 2018
	$5,500,000

	December 31, 2018
	$5,500,000

	March 31, 2019
	$5,500,000

	June 30, 2019
	$5,500,000

	September 30, 2019
	$5,500,000

	December 31, 2019
	$5,500,000

	March 31, 2020
	$5,500,000

	June 30, 2020
	$5,500,000

5

 

	
		
	September 30, 2020
	$5,500,000

	December 31, 2020
	$5,500,000

	March 31, 2021
	$5,500,000

	June 30, 2021
	$5,500,000

	September 30, 2021
	$5,500,000

	December 31, 2021
	$5,500,000

	March 31, 2022
	$5,500,000

	June 30, 2022
	$5,500,000

	September 30, 2022
	$5,500,000

	December 31, 2022
	$5,500,000

	March 31, 2023
	$5,500,000

	June 30, 2023
	$5,500,000

	September 30, 2023
	$5,500,000

	December 31, 2023
	$5,500,000

	March 31, 2024
	$5,500,000

For the avoidance of doubt, from and after the Joinder No. 2 Effective Date, the amortization schedule above amends and restates (in its entirety) the amortization table set forth in Section 3(a) of Joinder Agreement No. 1. 
(b)  Maturity Date.  The Borrower shall repay the Series A Incremental Term Loans (including the Tack-On Series A Incremental Term Loans) in full on May 24, 2024 (the “Series A Incremental Term Loan Maturity Date”).

6

 

		
	4.
	Most Favored Nation Provision.  As set forth in Joinder Agreement No. 1 with respect to the Existing Series A Incremental Term Loans, the yield applicable to each additional Series of Incremental Term Loans incurred pursuant to the Credit Agreement shall be determined by the Borrower and the applicable lenders under such additional Series of Incremental Term Loans as set forth in the applicable Joinder Agreement; provided that the annual yield (as reasonably determined by the Administrative Agent taking into account interest margins, minimum Eurodollar Rate, minimum Base Rate, upfront fees and OID on such term loans with upfront fees and OID equated to interest margins based on assumed four-year life-to-maturity) applicable to such additional Series of Incremental Term Loans will not be more than fifty (50) basis points above the annual yield for the Series A Incremental Term Loans (including the Tack-On Series A Incremental Term Loans) (as reasonably determined by the Administrative Agent consistent with the above (but including only those upfront fees or OID paid generally to all of the Series A Incremental Term Loan Lenders (as defined in Joinder Agreement No. 1) at the time of the incurrence of the Series A Incremental Term Loans)) unless the annual yield with respect to the Series A Incremental Term Loans (including the Tack-On Series A Incremental Term Loans) is increased by an amount equal to the difference between the annual yield with respect to such additional Series of Incremental Term Loans less fifty (50) basis points and the annual yield for the Series A Incremental Term Loans (including the Tack-On Series A Incremental Term Loans).

		
	5.
	Voluntary and Mandatory Prepayments.  The Borrower shall make principal payments on the Series A Incremental Term Loans (including the Tack-On Series A Incremental Term Loans) as set forth in Section 5 of Joinder Agreement No. 1 and, for the avoidance of doubt, all references in Section 5 of Joinder Agreement No. 1 to Series A Incremental Term Loans shall be deemed to include the Tack-On Series A Incremental Term Loans.

		
	6.
	Prepayment Fees (Repricing Events).  The Borrower agrees to pay to each Incremental Term Loan Lender that has Tack-On Series A Incremental Term Loans the prepayment fees applicable to Existing Series A Incremental Term Loans as set forth in Joinder Agreement No. 1 with respect to the Existing Series A Incremental Term Loans and, for the avoidance of doubt, all references in Section 6 of Joinder Agreement No. 1 to Series A Incremental Term Loans shall be deemed to include the Tack-On Series A Incremental Term Loans. 

		
	7.
	Other Fees. The Borrower agrees to pay to the Funding Incremental Term Loan Lender as of the Joinder Agreement No. 2 Effective Date, as fee compensation for the Funding Incremental Term Loan Lender’s Incremental Term Loan Commitment hereunder, an amount equal to 0.25% of the aggregate amount of the Funding Incremental Term Loan Lender’s Incremental Term Loan Commitment, payable to the Funding Incremental Term Loan Lender out of the proceeds of any Loans as and when funded on the date hereof in respect of the Funding Incremental Term Loan Lender’s Incremental Term Loan Commitment hereunder.

7

 

		
	8
	Post-Closing Real Estate Covenant.  The Borrower covenants and agrees that on or before August 31, 2017 (or such later date as may be agreed to by the Administrative Agent in its reasonable discretion with respect to some or all of the Mortgaged Properties that are subject to a Mortgage on the date hereof) it shall:

(i) execute and deliver a modification for each Mortgage on each Mortgaged Property that is subject to a Mortgage on the date hereof (the “Modifications”) in form and substance reasonably satisfactory to the Administrative Agent duly executed by the appropriate Loan Party;
(ii) provide evidence reasonably satisfactory to the Administrative Agent that counterparts of the Modifications are in form suitable for filing or recording in all filing or recording offices that the Administrative Agent may deem reasonably necessary in order to maintain a valid first and subsisting Lien on the property described therein subject to Permitted Prior Liens in favor of the Administrative Agent for the benefit of the Secured Parties and evidence that all filing, documentary, stamp, intangible and recording taxes and fees will be paid upon the recording of the Modifications; and
(iii)  cause to be provided to the Administrative Agent fully paid endorsement(s) to the existing Mortgage Policies reasonably satisfactory the Administrative Agent or other evidence reasonably satisfactory to the Administrative Agent insuring that the priority of the Lien of such Mortgages has not changed and confirming and/or insuring that since the issuance of the existing title insurance policy there has been no change in the condition of title and there are no intervening liens or encumbrances that may then or thereafter take priority over the Lien of such Mortgages (other than Permitted Prior Liens).
		
	9.
	Fungibility.  For the avoidance of doubt and notwithstanding any provision herein to the contrary, on and after the Joinder No. 2 Effective Date, the Existing Series A Incremental Term Loans and the Tack-On Series A Incremental Term Loans shall be deemed to be, and treated as, part of the same Series of Incremental Term Loans (such Series, the “Series A Incremental Term Loans”) for all purposes under the Credit Agreement and each other Loan Document (including Joinder Agreement No. 1 and this Agreement), including for any purposes of any determination of Required Lenders and the application of repayments or prepayments of the Series A Incremental Term Loans as set forth in the Credit Agreement and/or, for the avoidance of doubt, Joinder Agreement No. 1 and this Agreement.  Each of the parties hereto hereby agrees that the Administrative Agent may, in consultation with the Borrower, take any and all action as may be reasonably necessary to ensure that, upon the effectiveness of the making of the Tack-On Series A Incremental Term Loans on the Joinder Agreement No. 2 Effective Date, all such Tack-On Series A Term Loans and all Existing Series A Term Loans shall be deemed to be a single Series of Incremental Term Loans on a pro rata basis.

8

 

		
	10.
	Credit Agreement Governs. Except as set forth in this Agreement, the Tack-On Series A Incremental Term Loans shall otherwise be subject to the provisions of the Credit Agreement and the other Loan Documents (including, to the extent specified herein, Joinder Agreement No. 1).

		
	11.
	Representations and Warranties.  By its execution of this Agreement, the Borrower and each Guarantor hereby represents and warrants that, as of the date hereof:

(a)     each Loan Party has all requisite power and authority to execute, deliver and perform this Agreement and to carry out the transactions contemplated by, and perform its obligations under, this Agreement and, with respect to the Borrower, the Credit Agreement;
(b)    the execution, delivery and performance by each Loan Party of this Agreement and with respect to the Borrower, the Credit Agreement have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any material contract to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Law;
(c)    no material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or with respect to the Borrower, the Credit Agreement, except for the approvals, consents, exemptions, authorizations, actions, notices and filings which have been duly obtained, taken, given or made and are in full force and effect;
(d)    this Agreement has been duly executed and delivered by each Loan Party that is a party hereto.  Each of this Agreement and the Credit Agreement constitutes a legal, valid and binding obligation of each Loan Party to the extent it is a part thereto, enforceable against each Loan Party in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law);
(e)    the representations and warranties contained in Article 5 of the Credit Agreement or any other Loan Document shall be true and correct in all material respects as of the Joinder Agreement No. 2 Effective Date to the same extent as though made as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date; provided that any representation and warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects; and

9

 

(f)    no Event of Default or Default has occurred and is continuing, in each case immediately before and immediately after giving effect to this Agreement and the transactions contemplated hereby.  
		
	12.
	Eligible Assignee.  By its execution of this Agreement, the Funding Incremental Term Loan Lender represents and warrants that it is an Eligible Assignee.

		
	13
	Consents.  For purposes of Section 10.06(b) of the Credit Agreement, the Borrower hereby consents to any assignee of the Funding Incremental Term Loan Lender or any of its Affiliates becoming a Series A Incremental Term Loan Lender (as defined in Joinder Agreement No. 1) in connection with the initial syndication of the Tack-On Series A Incremental Term Loans to the extent the inclusion of such assignee in the syndicate had been disclosed to and agreed to by the Borrower prior to the Joinder Agreement No. 2 Effective Date.

		
	14.
	Notice.  For purposes of the Credit Agreement, the initial notice address of the Funding Incremental Term Loan Lender shall be as set forth below its signature below.

		
	15. 
	Foreign Lenders.  For each Funding Incremental Term Loan Lender that is a Foreign Lender, delivered herewith to the Administrative Agent are such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such Funding Incremental Term Loan Lender may be required to deliver to the Administrative Agent pursuant to Section 3.01(e) of the Credit Agreement.

		
	16.
	No Novation.  By its execution of this Agreement, each of the parties hereto acknowledges and agrees that the terms of this Agreement do not constitute a novation, but, rather, a supplement of the terms of a pre-existing indebtedness and related agreement, as evidenced by the Credit Agreement.

		
	17.
	Recordation of the Tack-On Series A Incremental Term Loans.  Upon execution and delivery hereof, the Administrative Agent will record the Tack-On Series A Incremental Term Loans made by the Funding Incremental Term Loan Lender in the Register.

		
	18.
	Amendment, Modification and Waiver.  This Agreement may not be amended, restated, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

		
	19.
	Entire Agreement.  This Agreement, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and oral, among the parties or any of them with respect to the subject matter hereof.

10

 

		
	20.
	Governing Law; Jurisdiction; Etc.  

THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT, TORT OR OTHERWISE) THAT MAY BE BASED UPON, ARISE OUT OF OR RELATE IN ANY WAY HERETO OR TO THE NEGOTIATION, EXECUTION OR PERFORMANCE THEREOF OR TO THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
THE PROVISIONS OF SECTIONS 10.14(b), (c) AND (d), 10.15, 10.16 AND 10.18 OF THE CREDIT AGREEMENT ARE INCORPORATED BY REFERENCE HEREIN AND MADE A PART HEREOF.
		
	21.
	Loan Document.  This Agreement shall constitute a Loan Document under the terms of the Credit Agreement.

		
	22.
	Reaffirmation.  The Borrower and each Guarantor hereby (a) acknowledges that it has reviewed the terms and provisions of the Credit Agreement and this Agreement and (b) reaffirms, as applicable, its guarantees, pledges, grants of security interests and other obligations under and subject to the terms of each of the Loan Documents to which it is party and agrees that, notwithstanding the effectiveness of this Agreement or any of the transactions contemplated hereby, such guarantees, pledges, grants of security interests and other obligations, and the terms of each of the Loan Documents to which it is a party, as modified or supplemented in connection with this Agreement and the transactions contemplated hereby, are not impaired or affected in any manner whatsoever and shall continue to be in full force and effect and shall continue to secure all the Obligations.  

The Borrower and each Guarantor acknowledges and agrees that each Loan Document to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Agreement or the First Joinder Agreement.
Nothing in this Agreement shall (i) constitute any waiver of any provisions of the Credit Agreement or any other Loan Document unless expressly set forth herein or (ii) be deemed to require the consent of any Guarantor to any future amendments to or waivers of the Credit Agreement or any other Loan Document, in whole or part.

11

 

		
	23.
	Severability.  Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction.  If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

		
	24.
	Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.

		
	25.
	USA PATRIOT Act. Each of the Funding Incremental Term Loan Lender and the Administrative Agent (for itself and not on behalf of the Funding Incremental Term Loan Lender) hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower and each Guarantor, which information includes the name, tax identification number and address of the Borrower and each Guarantor and other information that will allow the Funding Incremental Term Loan Lender or the Administrative Agent, as applicable, to identify the Borrower and each Guarantor in accordance with the Act. The Borrower shall, and shall cause each Guarantor to, promptly following a request by the Administrative Agent or the Funding Incremental Term Loan Lender, provide all documentation and other information that the Administrative Agent or the Funding Incremental Term Loan Lender requests in order to comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including the Act.

[Remainder of page intentionally left blank]

12

 

IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Agreement as of the date first written above.
	
			
	 
	Funding Incremental Term Loan Lender:

	 
	 
	 

	 
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Christopher Day

	 
	Name:
	Christopher Day

	 
	Title:
	Authorized Signatory

	 
	 
	 

	 
	By:
	/s/ Karim Rahimtoola

	 
	Name:
	Karim Rahimtoola

	 
	Title:
	Authorized Signatory

	 
	 
	 

[Signature Page to Joinder Agreement No. 2]

 

	
			
	 
	Borrower:

	 
	 
	 

	 
	POST HOLDINGS, INC.

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Diedre J. Gray

	 
	Name:
	Diedre J. Gray

	 
	Title:
	Senior Vice President, General Counsel
and Chief Administrative Officer, Secretary

	 
	 
	 

	 
	 
	 

	 
	Guarantors:

	 
	 
	 

	 
	AGRICORE UNITED HOLDINGS INC.
ATTUNE FOODS, LLC
CUSTOM NUTRICEUTICAL LABORATORIES, LLC
DYMATIZE ENTERPRISES, LLC
DYMATIZE HOLDINGS, LLC
GOLDEN ACQUISITION SUB, LLC
GOLDEN BOY NUT CORPORATION
GOLDEN BOY PORTALES, LLC
POST ACQUISITION SUB IV, LLC
PREMIER NUTRITION CORPORATION
SUPREME PROTEIN, LLC
TA/DEI-A ACQUISITION CORP.
TA/DEI-B1 ACQUISITION CORP.
TA/DEI-B2 ACQUISITION CORP.
TA/DEI-B3 ACQUISITION CORP.
AMERICAN BLANCHING COMPANY
PRIMO PIATTO, INC.
DAKOTA GROWERS PASTA COMPANY, INC.
DNA DREAMFIELDS COMPANY, LLC
GB ACQUISITION USA, INC.
GOLDEN NUT COMPANY (USA) INC.
NUTS DISTRIBUTOR OF AMERICA INC.

	 
	 
	 

	 
	By:
	/s/ Diedre J. Gray

	 
	Name:
	Diedre J. Gray

	 
	Title:
	Secretary of each above-listed Guarantor

[Signature Page to Joinder Agreement No. 2]

 

	
			
	 
	MFI HOLDING CORPORATION
MICHAEL FOODS, INC.
MICHAEL FOODS GROUP, INC.
MICHAEL FOODS OF DELAWARE, INC.
NATIONAL PASTEURIZED EGGS, INC.
PCB BATTLE CREEK, LLC
POST CONSUMER BRANDS, LLC
POST FOODS, LLC
NATIONAL PASTEURIZED EGGS, LLC
CASA TRUCKING, INC.
CRYSTAL FARMS REFRIGERATED DISTRIBUTION COMPANY
MFI INTERNATIONAL, INC.
MOM BRANDS COMPANY, LLC
MOM BRANDS SALES, LLC
NORTHERN STAR CO.
PAPETTI’S HYGRADE EGG PRODUCTS, INC.
M.G. WALDBAUM COMPANY

	 
	 
	 

	 
	By:
	/s/ Diedre J. Gray

	 
	Name:
	Diedre J. Gray

	 
	Title:
	Assistant Secretary of each above-listed Guarantor

[Signature Page to Joinder Agreement No. 2]

 

	
			
	Consented to by:
	 

	 
	 
	 

	BARCLAYS BANK PLC
as Administrative Agent
	 

	 
	 
	 

	 
	 
	 

	By:
	/s/ Ritam Bhalla
	 

	Name:
	Ritam Bhalla
	 

	Title:
	Director
	 

[Signature Page to Joinder Agreement No. 2]

 

SCHEDULE A 
TO JOINDER AGREEMENT NO. 2

	
			
	Name of Lender
	Type of Commitment
	Amount

	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
	Incremental Term Loan Commitment
	$1,000,000,000

	 
	 
	Total:  $1,000,000,000

[Schedule A to Joinder Agreement No. 2]

 

SCHEDULE B 
JURISDICTIONS
New York
Missouri
Illinois
Minnesota
North Dakota
Nebraska 

[Schedule B to Joinder Agreement No. 2]

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