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Convertible Secured Debenture Indenture

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Convertible Secured Debenture Indenture CONVERTIBLE SECURED DEBENTURE INDENTURE between MADALENA ENERGY INC. - and - COMPUTERSHARE TRUST COMPANY OF CANADA Providing for the Issue of Convertible Secured Debentures Dated as of July 13, 2016 TABLE OF CONTENTS ARTICLE 1 INTERPRETATION........................................................................................................ 1 1.1 Definitions ............................................................................................................................... 1 1.2 Meaning of "Outstanding" ....................................................................................................... 6 1.3 Headings ................................................................................................................................. 6 1.4 References ............................................................................................................................... 7 1.5 Certain Rules of Interpretation ................................................................................................. 7 1.6 Time of Essence ...................................................................................................................... 7 1.7 Day Not a Business Day .......................................................................................................... 7 1.8 Applicable Law ....................................................................................................................... 7 1.9 Conflict ................................................................................................................................... 8 1.10 Currency .................................................................................................................................. 8 1.11 Accounting Terms ................................................................................................................... 8 1.12 Calculations ............................................................................................................................. 8 1.13 Language ................................................................................................................................. 8 1.14 Severability ............................................................................................................................. 8 1.15 Schedule .................................................................................................................................. 8 1.16 Successors and Assigns ............................................................................................................ 9 1.17 Entire Agreement ..................................................................................................................... 9 1.18 Benefits of Indenture ............................................................................................................... 9 ARTICLE 2 THE DEBENTURES ....................................................................................................... 9 2.1 Limit of Debentures ................................................................................................................. 9 2.2 Form and Terms of the Debentures .......................................................................................... 9 2.3 Issue of Debentures................................................................................................................ 12 2.4 Execution of Debentures ........................................................................................................ 12 2.5 Certification........................................................................................................................... 13 2.6 Mutilation, Loss, Theft or Destruction.................................................................................... 13 2.7 Concerning Interest ................................................................................................................ 13 2.8 Debentures to Rank Pari Passu .............................................................................................. 14 2.9 Payments of Amounts Due on Maturity.................................................................................. 14 2.10 Payment of Interest ................................................................................................................ 15 2.11 Withholding Tax .................................................................................................................... 15 2.12 Canadian Legend on the Debentures and Shares ..................................................................... 16 2.13 U.S. Legend on the Debentures and Shares ............................................................................ 16 ARTICLE 3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP .......................... 17 3.1 Fully Registered Debentures .................................................................................................. 17 3.2 Transferee Entitled to Registration ......................................................................................... 18 3.3 No Notice of Trusts ............................................................................................................... 18 3.4 Registers Open for Inspection ................................................................................................ 18 3.5 Exchanges of Debentures ....................................................................................................... 18 3.6 Closing of Registers ............................................................................................................... 19 3.7 Charges for Registration, Transfer and Exchange ................................................................... 19 3.8 Ownership of Debentures ....................................................................................................... 20 ARTICLE 4 REDEMPTION AND PURCHASE OF DEBENTURES AND CERTAIN PAYMENTS ON MATURITY ........................................................................................................... 20 4.1 Applicability of Article .......................................................................................................... 20 ii 4.2 Partial Redemption ................................................................................................................ 20 4.3 Notice of Redemption ............................................................................................................ 21 4.4 Debentures Due on Redemption Date ..................................................................................... 21 4.5 Deposit of Redemption Monies .............................................................................................. 22 4.6 Failure to Surrender Debentures Called for Redemption ......................................................... 22 4.7 Cancellation of Debentures Redeemed ................................................................................... 22 4.8 Deposit of Maturity Monies ................................................................................................... 23 ARTICLE 5 SECURITY ..................................................................................................................... 23 5.1 Security ................................................................................................................................. 23 5.2 Attachment ............................................................................................................................ 23 5.3 Leases ................................................................................................................................... 24 5.4 Contractual Rights ................................................................................................................. 24 5.5 Liability of Debenture Trustee ............................................................................................... 24 5.6 Share Certificates ................................................................................................................... 24 5.7 Control Agreements ............................................................................................................... 25 5.8 Capital Structure Changes ...................................................................................................... 25 5.9 Permitted Activities ............................................................................................................... 25 5.10 Termination of Rights ............................................................................................................ 25 5.11 Power of Attorney ................................................................................................................. 26 5.12 Mandatory Provisions of Applicable Law .............................................................................. 26 5.13 Waivers of Applicable Laws .................................................................................................. 26 5.14 Further Assurances ................................................................................................................ 26 5.15 Registration ........................................................................................................................... 27 5.16 Discharge .............................................................................................................................. 27 5.17 Partial Discharge ..................................................................................................................
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