Document:

surge_0607-ex1001.htm

     Exhibit
10.1

     

     

    August
17, 2007

     

    Surge
Global Energy Inc.

    12220 El
Camino Real

    Suite
410

    San
Diego, CA 92130 USA

    Fax:
858-704-5011

    

    Attention:
Mr. David Perez, Chief Executive Officer and Chairman of the Board

     

    and
to

     

    Mr. David
Perez

    12220 El
Camino Real

    Suite
410

    San
Diego, CA 92130 USA

    Fax:
858-704-5011

    

    Dear
Sirs:

     

    Re:    Agreement
to Vote

     

    For good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by both Surge Global Energy Inc. and David Perez (the
"Securityholders") and in consideration of the entering into by Signet Energy
Inc. ("Signet") of the arrangement agreement dated August , 2007 among Signet,
Pan Orient Energy Corp., Andora Energy Corporation ("Andora"), 1337686 Alberta
Ltd. and Valiant Trust Company (the "Arrangement Agreement") relating to the
combination of the businesses of Andora and Signet (the "Proposed Transaction"),
Signet, Andora and the Securityholders agree as follows:

     

    Unless
otherwise defined herein capitalized terms shall have the meanings ascribed
thereto in the Arrangement Agreement.

     

    1.    Ownership
of Shares

     

    Signet
and Andora understand that the Securityholders are the beneficial owner,
directly or indirectly or exercise voting control over, of at least the number
of common shares (the "Shares") of Signet, set forth on page 5
hereof.

     

    In
addition to the foregoing, the term "Shares" will be deemed to also include any
stock dividend, stock split, recapitalization, reclassification, combination or
exchange of shares of capital stock of Signet on, of, or affecting the
Securityholder's Shares or after the date of this Agreement.

     

    2.    Revocation
of Previous Proxies

     

    The
Securityholders hereby revoke any and all previous proxies with respect to the
Securityholders' Shares.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3.    Covenants
of the Securityholders

     

    The
Securityholders covenant and agree with Signet and Andora that, until the
Release Date, as defined below, to the extent the Proposed Transaction is
effected as set forth in the Arrangement Agreement and provided the board of
directors of Signet have received a written fairness opinion from their
financial advisors indicating that the transaction is fair from a financial
point of view to the shareholders of Signet, the Securityholders
shall:

     

    
      	
                    (a)  

            	
              attend
      (either in person or by proxy) any meeting of the securityholders of
      Signet convened for the purposes of considering the Proposed Transaction
      (including any adjournments and postponements thereof), and at such
      meeting, vote all of the Shares in favour of the Proposed Transaction and
      all matters related thereto;

            

    

     

    
      	
                    (b)  

            	
              vote
      against (i) any extraordinary corporate transaction, such as a merger,
      rights offering, reorganization, recapitalization, or liquidation
      involving Signet other than the Proposed Transaction and any transaction
      related thereto, (ii) a sale or transfer of a material amount of assets of
      Signet or the issuance of any securities of Signet (other than pursuant to
      the Signet's incentive share option plan), or (iii) any action that is
      reasonably likely to impede, interfere with, delay, postpone, or adversely
      affect in any material respect the Proposed
  Transaction;

            

    

     

    
      	
                    (c)  

            	
              not
      sell, transfer, assign, pledge, or otherwise dispose of, or enter into any
      agreement or understanding relating to the sale, transfer, assignment or
      other disposition of the Shares or permit any affiliate of the
      Securityholders to do any of the
foregoing;

            

    

     

    
      	
                    (d)  

            	
              not
      exercise any rights of dissent or appraisal in respect of any resolution
      approving the Proposed Transaction or any aspect thereof or matter related
      thereto, and not to exercise any other securityholder or optionholder
      rights or remedies available at common law or pursuant to the  Business
      Corporations Act  (Alberta) or in any manner delay,
      hinder, prevent, interfere with or challenge the Proposed
      Transaction;

            

    

     

    
      	
                    (e)  

            	
              promptly
      notify Signet upon any of undersigned's representations or warranties
      contained in this Agreement becoming untrue or incorrect in any material
      respect prior to the Release Date, and for the purposes of this provision,
      each representation and warranty shall be deemed to be given at and as of
      all times during such period (irrespective of any language which suggests
      that it is only being given as at the date hereof);
  and

            

    

     

    
      	
                    (f)  

            	
              deposit
      such number of their Shares into escrow on such terms and only to the
      extent as may be required by any stock exchange or other regulatory body
      in respect to the Proposed
Transaction.

            

    

     

    Forthe
purposes of this letter agreement (this “Agreement”), "Release Date" means the
earlier of: (i) the time at which the Proposed Transaction becomes effective
(the "Effective Time") on the date on which the Proposed Transaction becomes
effective (the "Effective Date"), which is to be no later than September 15,
2007 unless extended by mutual agreement by the parties to this Agreement; or
(ii) the date of the termination of the Arrangement Agreement.

     

    4.    Representations
and Warranties of the Securityholders

     

    Each of
the Securityholders hereby covenants, represents and warrants to Signet and
Andora that:

     

    
      	
                    (a)  

            	
              the
      Securityholder is the legal and beneficial owner of, or exercises control
      or direction over, the number of Shares set forth on page 5 hereof, set
      forth opposite its name, free and clear of all claims, liens, charges,
      encumbrances and security interests;
and

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
                    (b)  

            	
              the
      Securityholder is duly authorized to execute and deliver this Agreement
      and this letter is a valid and binding agreement, enforceable against the
      Securityholder in accordance with its terms, and the consummation by the
      Securityholder of the transaction contemplated hereby will not constitute
      a material violation or breach of or default under, or conflict with, any
      contract, commitment, agreement, understanding or arrangement of any kind
      to which the Securityholder will be a party and by which the
      Securityholder will be bound at the time of such
    consummation.

            

    

     

    All of
the representations and warranties contained in this section 4 shall be valid
and true as if recited and repeated as at the Effective Time of the Proposed
Transaction.

     

    5.    Representations
and Warranties of Signet

     

    Each of
Signet and Andora hereby represents and warrants to and covenants with the
Securityholders, as representations and warranties that will survive completion
of the transactions contemplated hereby, that it is duly authorized to execute
and deliver this Agreement, this Agreement has been duly executed and delivered
by it and, upon acceptance by the Securityholders, this Agreement will be a
valid and binding agreement, enforceable against it in accordance with its terms
and neither the execution of this Agreement nor the consummation by it of the
transactions contemplated hereby will constitute a violation or breach of or
default under, or conflict with, any restriction of any kind or any contract,
commitment, agreement, understanding or arrangement to which it is a party and
by which it is bound. Each of Signet and Andora covenants and agrees that it
shall comply, in all material respects, with the terms and conditions contained
in the Arrangement Agreement.

     

    6.    Termination

     

    In the
event that the Arrangement Agreement is terminated in accordance with the
respective terms thereof, this Agreement shall immediately terminate. In
addition, in the event the terms of this Agreement and/or the obligations of the
Securityholders’ hereunder would reasonably be expected to expose any
Securityholder to a claim for a breach of a duty, fiduciary or otherwise, such
Securityholder may terminate this Agreement upon written notice to the other
parties hereto.

     

    7.    Amendment

     

    Except as
expressly set forth herein, this Agreement constitutes the entire agreement
between the parties and may not be modified, amended, altered or supplemented
except upon the execution and delivery of a written agreement executed by each
of the parties hereto.

     

    8.    Assignment

     

    No party
to this Agreement may assign any of its rights or obligations under this
Agreement without the prior written consent of the other parties.

     

    9.    Disclosure

     

    Prior to
first public disclosure of the existence and terms and conditions of this
Agreement, neither of the parties hereto shall disclose the existence of this
Agreement or any details hereof, or the possibility of the Proposed Transaction
or any terms or conditions or other information concerning the Proposed
Transaction to any person other than the Securityholder’s advisors, without the
prior written consent of the other party hereto, except to the extent required
by law. The existence and terms and conditions of this Agreement may be
disclosed by Signet and Andora in the press release issued in connection with
the execution of the Arrangement Agreement, and other public disclosure
documents in accordance with applicable securities legislation.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    10.    Further
Assurances

     

    Subject
to the terms and conditions herein, the Securityholders and Signet agree to use
commercially reasonable efforts to take, or cause to be taken, all action and to
do, or cause to be done, all things necessary, proper or advisable under
applicable laws and regulations, to consummate the transactions contemplated by
this Agreement and the Arrangement Agreement.

     

    11.    Notice

     

    Any
notice, document or other communication required or permitted to be given to the
parties under this Agreement shall be in writing and be either hand delivered or
faxed (with a following letter) as follows:

     

    
      	
                    (a)  

            	
              to
      the Securityholders at the address and fax number listed on the first page
      of this Agreement;

            

    

     

    
      	
                    (b)  

            	
              to
      Signet:

            

    

     

    
      	 
      	
              Signet Energy
      Inc. 

            
	 
      	
              2600, 144 - 4th
      Avenue SW 

            
	 
      	
              Calgary, AB T2P
      3N4 

            
	 
      	 
      
	 
      	
              Attention: Executive Chairman and
      Chief Executive Officer 

            
	 
      	
              Fax: (403)
      440-1114; 

            

    

     

    
      	
                    (c)  

            	
              to
      Andora:

            

    

     

    
      	 
      	
              Andora
      Energy Corporation

            
	 
      	
              700, 602 - 12th
      Avenue SW

            
	 
      	
              Calgary,
      AB T2R 1J3

            
	 
      	 
      
	 
      	
              Attention:
      Chief Executive Officer

            
	 
      	
              Fax:
      (403) 451-1553;

            

    

     

    and shall
be deemed to be received by the party to whom such notice is given on the date
of delivery or transmission.

     

    12.    Successors

     

    This
Agreement will be binding upon, enure to the benefit of and be enforceable by
the Securityholders and their respective successors.

     

    13.    Time
of the Essence

     

    Time
shall be of the essence of this Agreement.

     

    14.    Applicable
Law

     

    This
Agreement shall be governed by and construed in accordance with the laws of the
Province of Alberta and the laws of Canada applicable therein and the courts of
such Province shall have exclusive jurisdiction over any dispute hereunder, to
which jurisdiction the parties attorn.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    15.    Counterpart
Execution

     

    This
Agreement may be signed by fax and in counterparts, which, together, shall be
deemed to constitute one valid and binding agreement and delivery of such
counterparts may be effected by means of telecopier.

     

    
      	 
      	
              Yours
      truly, 

            
	 
      	 
      
	 
      	
              SIGNET ENERGY
      INC. 

            
	 
      	 
      
	 
      	
              Per: /s/ C.W.
      Leigh
      Cassidy                                                     

            
	 
      	
                    
      C.W. Leigh Cassidy 

            
	 
      	
                     Executive
      Chairman and Chief Executive Officer 

            
	 
      	 
      
	 
      	
              ANDORA ENERGY
      CORPORATION 

            
	 
      	 
      
	 
      	
              Per:                                                                                               
      

            
	 
      	
                    
      Name: 

            
	 
      	
                    
      Title: 

            

    

     

    Acceptance by the
Securityholders

     

    The
foregoing is hereby accepted as of and with effect from the date first above
written and the undersigned hereby confirms that the undersigned beneficially
owns or exercises control or direction over:

     

    
      	
                                 
      11,350,000                           
      Shares; 

            	
              SURGE
      GLOBAL ENERGY
      INC.                                         
       

            
	 
      	
              Name of
      Securityholder 

            
	 
      	 
      
	 
      	
              12220 El Camino Real, Suite
      410 

            
	 
      	
              San Diego, CA 92130 USA Fax:
      858.704.5011 

            
	 
      	 
      
	 
      	
              Signatures of authorized
      signatories on behalf of  

            
	 
      	
              SURGE GLOBAL
      ENERGY INC. 

            
	 
      	 
      
	 
      	
              /s/
      David Perez                                                        

            
	 
      	
              David
      Perez, Chairman & Director 

            
	 
      	 
      
	 
      	 
      
	
                                   
      850,000                           
        Shares; 

            	
              /s/
      David Perez                                                                           
      

            
	 
      	
              DAVID
      PEREZ  

            
	 
      	 
      
	 
      	
              12220
      El Camino Real, Suite 410

              San Diego, CA 92130 USA Fax:
      858.704.5011 

            

    

     

     

    5surge_0607-ex1002.htm

    Exhibit
10.2

     

    FIRST
SUPPLEMENTAL TRUST INDENTURE

     

    This
First Supplemental Trust Indenture is entered into as of the 17th day of
August, 2007 between:

     

    SIGNET ENERGY INC., a
corporation incorporated under the laws of the Province of Alberta and having
its head office in the City of Calgary, in the Province of Alberta (hereinafter
called " Signet
"),

    

    - and
-

     

    SURGE GLOBAL ENERGY, INC., a
corporation existing under the laws of the State of Delaware (hereinafter called
" Surge US
")

    

    and

    

    VALIANT TRUST COMPANY, a trust
company existing under the laws of the Province of Alberta having an office in
the City of Calgary, in the Province of Alberta (hereinafter called the " Debenture Trustee
")

     

     

    WITNESSETH
THAT:

     

    WHEREAS
Signet and Surge US and the Debenture Trustee entered into an trust indenture
(the "Indenture") dated
November 15, 2005 to provide for the creation and issuance of
debentures;

     

    AND
WHEREAS the Indenture provides that the Debenture Trustee may enter into
indentures supplemental to the Indenture;

     

    AND
WHEREAS The Corporation has entered into a letter of intent dated May 15, 2007
(the "Letter of Intent")
with Andora Energy Corporation (" Andora ") and Pan Orient
Energy Corp. relating to the proposed combination of the businesses of Andora
and Signet (the " Business
Combination ") and Signet and Andora anticipate the execution of an
arrangement agreement (the "
Arrangement Agreement ") setting forth all of the terms and conditions of
such business combination as contemplated by the Letter of Intent and as further
agreed upon by Signet and Andora;

     

    AND
WHEREAS, in connection with approving the Business Combination, the parties wish
to amend the terms of the Debentures to provide the Debentureholders with an
opportunity to participate in such Business Combination, to receive earlier
payment of the Principal Sum and Interest in respect of such Debentures or to
continue to hold such Debentures in accordance with the terms and conditions of
the Trust Indenture;

     

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

     

    NOW
THEREFORE it is hereby covenanted, agreed and declared as follows:

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
1

    INTERPRETATION

     

    1.1    Definitions

     

    In this
Amendment (including the recitals and schedules hereto, if any), the following
initially capitalized terms have the meanings set forth below and such meanings
shall supersede, as applicable, the meanings provided thereto in the Trust
Indenture. Initially capitalized terms used herein and not otherwise defined
herein have the meanings ascribed thereto in the Trust Indenture.

     

    
      	
              (a)   

            	
              "Amendment", "Amendment to Trust
      Indenture", "hereto", "herein", "hereby", "hereunder", "hereof" and similar
      expressions refer to this Amendment to Trust Indenture and not to any
      particular Article, Section, Subsection, Clause, subdivision or other
      portion hereof;

            

    

     

    
      	
              (b)   

            	
              "Andora Common Shares"
      means common shares of Andora;

            

    

     

    
      	
              (c)
        

            	
              "Conversion Price" means
      the price at which a Common Share may be issued from time to time after
      the Effective Date and prior to the Maturity Date on the conversion of the
      Principal Sum of a Debenture pursuant to Section 5.1(e), which is
      currently Cdn. $1.00 per Common Share, subject to adjustments in
      accordance with the provisions of Article 8 of the Trust Indenture, in
      which case it shall mean the adjusted price in effect at such
      time;

            

    

     

    
      	
              (d)
        

            	
              "Conversion Right" means
      the right of a Debentureholder to convert the Principal Sum into Common
      Shares pursuant to Section 5.1(a) or Section 5.1(e) hereof as
      applicable;

            

    

     

    
      	
              (e)
        

            	
              "Court Approval" means
      the issuance of the final order of the Court of Queen’s Bench of Alberta
      approving the arrangement pursuant to the Arrangement
      Agreement;

            

    

     

    
      	
              (f) 
        

            	
              "Effective Date" means
      the date that the arrangement pursuant to Section 193 of the Business Corporations
      Act (Alberta) and as contemplated by the Arrangement Agreement
      becomes effective under the  Business
      Corporations Act (Alberta);

            

    

     

    
      	
              (g)
        

            	
              "Effective Time" means
      12:01 a.m. on the Effective Date;

            

    

     

    
      	
              (h)
        

            	
              "Election to Convert"
      means an election to convert that sets forth the Principal Sum in respect
      of which the Conversion Right set forth in Section 5.1(a) is being
      exercised, the address of the Debentureholder which is to appear on the
      Share Register of the Corporation and the address where the new Debenture,
      if any, representing the unconverted portion of its Debenture may be
      sent;

            

    

     

    
      	
              (i) 
        

            	
              "Election to Receive
      Payment" means an election to receive payment in accordance with
      Section 7.2(a) that sets forth the Principal Sum in respect of which the
      right set forth in Section 7.2(a) is being exercised, the address of the
      Debentureholder which payment is to be sent and the address where the new
      Debenture, if any, representing the unconverted portion of the Debenture
      is to be sent;

            

    

     

    
      	
              (j) 
        

            	
              "Modified Conversion
      Price" means the price at which a Common Share may be issued from
      time to time prior to the Effective Date on the conversion of the
      Principal Sum of a Debenture, which is
  $0.7692307;

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              (k)   

            	
              "Shareholder Approval"
      means the approval of not less than 66 2⁄3% of the outstanding Common Shares
      present in person or by proxy at a duly called and convened meeting of the
      holders of Common Shares; and

            

    

     

    
      	
              (l) 
        

            	
              "Termination Date" means,
      if applicable, the date of public dissemination of a news release relating
      to the termination of the Letter of Intent or Arrangement Agreement or the
      failure to meet any of the conditions set forth in the Letter of Intent or
      Arrangement Agreement such that the Business Combination is terminated,
      abandoned or aborted.

            

    

     

    ARTICLE
2

    AMENDMENT
TO CONVERSION RIGHT

     

    2.1    Conversion
Right

     

    The
Conversion Right set forth in Section 5.1 of the Trust Indenture is hereby
deleted in its entirety and replaced with the following:

     

    
      	
              (a)
        

            	
              Upon
      and subject to the terms and conditions of this Article 5, each
      Debentureholder shall have the right, at its option, at any time and from
      time to time prior to 5:00 p.m. (Calgary time) on the Business Day
      immediately preceding the Effective Date, to elect to convert, immediately
      prior to the Effective Time on the Effective Date, the Principal Sum of
      its Debentures, in whole or in multiples of Cdn. $1,000, into fully paid
      and non-assessable Common Shares at the Modified Conversion Price in
      effect on the Conversion Date.

            

    

     

    
      	
              (b)
        

            	
              The
      exercise of the Conversion Right provided in Section 5.1(a) shall be
      conditional upon:

            

    

     

    
      	
              (i) 
        

            	
              Shareholder
      Approval of the Business
Combination;

            

    

     

    
      	
              (ii)
        

            	
              Court
      Approval of the Business Combination;
and

            

    

     

    
      	
              (iii)  

            	
              satisfaction
      (or waiver) of all conditions precedent to completion of the Business
      Combination set forth in the Arrangement
  Agreement.

            

    

     

    In the
event that the Letter of Intent or Arrangement Agreement is terminated for any
reason or the conditions set forth in this Section 5.1(b) are not satisfied, the
Election to Convert of the Debentureholder pursuant to Section 5.1(a) shall be
deemed to be rescinded as of such Termination Date.

     

    
      	
              (c)
        

            	
              If
      the Debentureholder elects to convert some or all of the Principal Sum of
      its Debentures into Common Shares pursuant to Section 5.1(a), no cash
      payment or other adjustment will be made for accrued interest on the
      Principal Sum of the converted Debenture. Instead, accrued interest will
      be deemed paid by the Common Shares (or Andora Common Shares received in
      accordance with the Arrangement Agreement) received by the Debentureholder
      on conversion. Delivery to the Debentureholder of the full number of
      Common Shares into which the Principal Sum of the Debenture is convertible
      (or Andora Common Shares received in accordance with the Arrangement
      Agreement) will thus be deemed:

            

    

     

    
      	
              (i) 
        

            	
              to
      satisfy the Corporation's obligation to pay the Principal Sum of the
      Debenture; and

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	
              (ii)
        

            	
              to
      satisfy the Corporation's obligation to pay accrued and unpaid Interest up
      to the Conversion Date.

            

    

     

    
      	
              (d)
        

            	
              Subject
      to Section 5.5, a Debentureholder may exercise its Conversion Right
      pursuant to Section 5.1(a) by delivering a duly completed Election to
      Convert together with the original Debenture(s) to the Trustee prior to
      5:00 p.m. (Calgary time) on the Business Day immediately preceding the
      Effective Date.

            

    

     

    
      	
              (e)
        

            	
              Upon
      and subject to the terms and conditions of this Article 5, each
      Debentureholder shall have the right, at its option, at any time and from
      time to time (i) after 5:00 p.m. (Calgary time) on the Business Day
      immediately preceding the Effective Date or (ii) after the Termination
      Date and, in each case, prior to the Maturity Date, to convert the
      Principal Sum of its Debentures, in whole or in multiples of Cdn. $1,000,
      into fully paid and non-assessable Common Shares at the Conversion Price
      in effect on the Conversion Date.

            

    

     

    
      	
              (f)
        

            	
              If
      the Debentureholder elects to convert some or all of the Principal Sum of
      its Debentures into Common Shares pursuant to Section 5.1(e), the
      Debentureholder shall receive:

            

    

     

    
      	
              (i)    

            	
              Common
      Shares; and

            

    

     

    
      	
              (ii)   

            	
              cash
      in an amount equal to all accrued and unpaid Interest (including overdue
      Interest) on the Principal Sum so converted up to the Conversion
      Date.

            

    

     

    
      	
              (g)  

            	
              Subject
      to Section 5.5, a Debentureholder may exercise its Conversion Right
      pursuant to Section 5.1(e) by surrendering its Debenture to the Trustee
      and giving notice to the Corporation and the Trustee at any time and from
      time to time (i) after 5:00 p.m. (Calgary time) on the Business Day
      immediately preceding the Effective Date or (ii) after the Termination
      Date and, in each case prior to the Maturity Date, specifying the
      following:

            

    

     

    
      	
              (i) 
        

            	
              the
      Principal Sum in respect of which the Conversion Right pursuant to Section
      5.1(e) is being exercised;

            

    

     

    
      	
              (ii)
        

            	
              the
      address of the Debentureholder which is to appear on the Share Register of
      the Corporation;

            

    

     

    
      	
              (iii)  

            	
              the
      address where the new Debenture, if any, representing the unconverted
      portion of its Debenture may be sent;
and

            

    

     

    
      	
              (iv)  

            	
              the
      number of Common Shares the Debentureholder is currently the beneficial
      owner of.

            

    

     

    
      	 
      	
              (h)  
      

            	
              Notwithstanding
      Section 5.1(a) of the Trust Indenture as amended hereby, if the
      Arrangement Agreement so provides, the conversion of Debentures which a
      Debentureholder has elected to convert pursuant to Section 5.1(a) may
      occur at the Effective Time, as part of the arrangement contemplated by
      the Arrangement Agreement and in the order specified therein, provided
      that such adjustment of the effective time of the conversion of such
      Debentures substantially preserves, and does not impair, in the reasonable
      opinion of the board of directors of the Corporation, any material right,
      power or entitlement of the Debentureholders under the Trust Indenture as
      amended hereby.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    2.2   Deemed
Conversion of Exchanged Debentures

     

    Section
5.3 of the Trust Indenture is hereby deleted in its entirety and replaced with
the following:

     

    Upon the
exercise of the Exchange Right pursuant to Section 6.1(a), Surge US shall, as
the resultant Debentureholder, be deemed to have exercised its Conversion Right
pursuant to Section 5.1(e).

     

    2.3   Effect
of Exercise of Conversion Right

     

    Section
5.4 of the Trust Indenture is hereby deleted in its entirety and replaced with
the following:

     

    
      	
              (a)   

            	
              Upon
      the exercise of the Conversion Right pursuant to Section 5.1(a), and
      subject to Section 5.5, the Common Shares subscribed for shall be deemed
      to have been issued and the applicable Debentureholder shall be deemed to
      have become the holder of record of such Common Shares immediately prior
      to the Effective Time on the Effective
Date.

            

    

     

    
      	
              (b)   

            	
              Within
      five Business Days of the Effective Date, the Corporation (or its
      successor) shall cause to be delivered to such Debentureholder, as
      specified in the Election to Convert, a share certificate for the
      appropriate number of Andora Common Shares issuable pursuant to the
      Arrangement Agreement, provided that such Debentureholder has surrendered
      its Debenture to the Trustee for cancellation, in whole or in part, as
      applicable.

            

    

     

    
      	
              (c)   

            	
              Upon
      the exercise of the Conversion Right pursuant to Section 5.1(e), and
      subject to Section 5.5, the Common Shares subscribed for shall be deemed
      to have been issued and the applicable Debentureholder shall be deemed to
      have become the holder of record of such Common Shares on the Conversion
      Date unless the transfer registers of the Corporation shall be closed on
      such date (including by application of any Applicable Law), in which case
      the Common Shares subscribed for shall be deemed to have been issued and
      such Debentureholder deemed to have become the holder of record of such
      Common Shares, on the date on which such transfer registers are
      reopened.

            

    

     

    
      	
              (d)   

            	
              Within
      five Business Days of the Conversion Date, the Corporation shall cause to
      be delivered to such Debentureholder, as specified in the notice of
      conversion delivered pursuant to Section 5.1(e), a share certificate for
      the appropriate number of Common Shares acquired provided that such
      Debentureholder has surrendered its Debenture to the Trustee for
      cancellation, in whole or in part, as
  applicable.

            

    

     

    2.4   Expiration
of Conversion Right

     

    Section
5.7 of the Trust Indenture is hereby deleted in its entirety and replaced with
the following:

     

    
      	
              (a)
        

            	
              On
      the Effective Date, the Conversion Right pursuant to Section 5.1(a) shall
      cease and terminate with respect to any amount of the Principal Sum which
      has not been converted except to the extent that a Debentureholder has not
      received certificates representing Andora Common Shares in accordance with
      Section 5.4(b), in which instance such Debentureholder’s rights hereunder
      shall continue until it has received that to which it is entitled
      hereunder.

            

    

     

    
      	
              (b)
        

            	
              On
      the Maturity Date, the Conversion Right pursuant to Section 5.1(e) shall
      cease and terminate with respect to any amount of the Principal Sum which
      has not been converted except to the extent that a Debentureholder has not
      received certificates representing Common Shares in accordance with
      Section 5.4(d), in which instance such Debentureholder’s rights hereunder
      shall continue until it has received that to which it is entitled
      hereunder.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    2.5    Early
Repayment of Principal Sum and Interest

     

    Section
7.2 of the Trust Indenture is hereby deleted in its entirety and replaced with
the following:

     

    
      	
              (a)
        

            	
              Upon
      and subject to the terms and conditions of this Section 7.2, each
      Debentureholder shall have the right, at its option, at any time and from
      time to time prior to 5:00 p.m. (Calgary time) on the Business Day
      immediately preceding the Effective Date, to elect to receive, within 15
      Business Days from the Effective Date, the Principal Sum of its Debentures
      or any part thereof, plus Interest accrued from the last Interest Payment
      Date to the Maturity Date.

            

    

     

    
      	
              (b)
        

            	
              The
      exercise of the right to receive payment pursuant to Section 7.2(a) shall
      be conditional upon:

            

    

     

    
      	
              (i) 
        

            	
              Shareholder
      Approval of the Business
Combination;

            

    

     

    
      	
              (ii)
        

            	
              Court
      Approval of the Business Combination;
and

            

    

     

    
      	
              (iii)  

            	
              satisfaction
      (or waiver) of all conditions precedent to completion of the Business
      Combination set forth in the Arrangement
  Agreement.

            

    

     

    Upon
satisfaction of the requirements set forth in this Section 7.2(b), the
Corporation shall make payment to each electing Debentureholder of the Principal
Sum and Interest accrued from the last Interest Payment Date to the Maturity
Date in accordance with their Election to Receive Payment. From and after the
Effective Date, the sole right and remedy of the Debentureholder shall be to
receive payment of Principal and Interest in accordance with Section 7.2. In the
event that the Letter of Intent or Arrangement Agreement is terminated for any
reason or the conditions set forth in this Section 7.2(b) are not satisfied, the
Election to Receive Payment of the Debentureholder pursuant to Section 7.2(a)
shall be deemed to be rescinded as of such Termination Date and all such other
rights and entitlements of the Debentureholder pursuant to the Trust Indenture
shall continue in full force and effect.

     

    
      	
              (c)
        

            	
              A
      Debentureholder may exercise its right pursuant to Section 7.2(a) by
      delivering a duly completed Election to Receive Payment, together with the
      original Debenture(s) to the Trustee prior to 5:00 p.m. (Calgary time) on
      the Business Day immediately preceding the Effective
  Date.

            

    

     

    2.6   Effect
of Amendment

     

    
      	
              (a)  

            	
              This
      Amendment to the Trust Indenture shall replace and supersede all sections
      referred to herein and shall be read with the Trust Indenture as one and
      the same agreement governing the Debentures. The Amendment to Trust
      Indenture shall become effective as at and from the time at which an
      Extraordinary Resolution of the Debentureholders is passed in accordance
      with the Trust Indenture approving the amendments to the Trust Indenture
      set forth herein.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    ARTICLE
3

    ADDITIONAL
MATTERS

     

    3.1    Confirmation
of Indenture

     

    The
Indenture, as amended and supplemented by this Supplemental Indenture, is in all
respects confirmed.

     

    3.2    Acceptance
of Trusts

     

    The
Debenture Trustees hereby accepts the trusts in this Supplemental Indenture
declared and provided for and agrees to perform the same upon the terms and
conditions and subject to the provisions set forth in the
Indenture.

     

    3.3    Governing
Law

     

    This
Supplemental Indenture shall be construed in accordance with the laws of the
Province of Alberta and the laws of Canada applicable therein and shall be
treated, in all respects, as an Alberta contract.

     

    3.4    Further
Assurances

     

    The
parties shall, with reasonable diligence, do all such things and provide all
such reasonable assurances as may be required to consummate the transactions
contemplated by this Supplemental Indenture, and each party shall provide such
further documents or instruments required by the other party as may be
reasonably necessary or desirable to effect the purpose of this Supplemental
Indenture and carry out its provisions.

     

    3.5    Counterparts

     

    This
Supplemental Indenture may be executed by the parties in separate counterparts
each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
       

    

    IN WITNESS WHEREOF the parties
hereto have executed these presents under their respective corporate seals and
hands of their proper officers in that behalf.

     

     

    
      	 
      	
              SIGNET
      ENERGY INC.

               

            
	 
      	 
      
	 
      	
              By:___________________________________

               

            
	 
      	 
      
	 
      	
              SURGE
      GLOBAL ENERGY, INC.

               

            
	 
      	 
      
	 
      	
              By:___________________________________

               

            
	 
      	 
      
	 
      	
              VALIANT
      TRUST COMPANY

               

            
	 
      	 
      
	 
      	
              By:___________________________________

               

            
	 
      	 
      
	 
      	
              By:___________________________________

               

            

    

     

     

    8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]