Organto Foods : Supplemental Information

TABLE OF CONTENTS

ARTICLE 1 INTERPRETATION..............................................................................................

1

1.1

Definitions........................................................................................................................

1

1.2

Meaning of "Outstanding" .............................................................................................

11

1.3

Headings.........................................................................................................................

12

1.4

Time of Essence .............................................................................................................

12

1.5

References ......................................................................................................................

12

1.6

Certain Rules of Interpretation.......................................................................................

12

1.7

Day Not a Business Day.................................................................................................

12

1.8

Applicable Law ..............................................................................................................

12

1.9

Conflict...........................................................................................................................

13

1.10

Currency .....................................................................................................................

13

1.11

Calculations ................................................................................................................

13

1.12

Language ....................................................................................................................

13

1.13

Severability.................................................................................................................

13

1.14

Entire Agreement........................................................................................................

13

1.15

Successors and Assigns ..............................................................................................

14

1.16

Benefits of Indenture ..................................................................................................

14

1.17

Schedules ....................................................................................................................

14

ARTICLE 2 THE DEBENTURES............................................................................................

14

2.1

Limit of Debentures .......................................................................................................

14

2.2

Terms of Debentures of Any Series ...............................................................................

14

2.3

Form of Debentures........................................................................................................

16

2.4

Form and Terms of Initial Debentures ...........................................................................

17

2.5

Certification and Delivery of Additional Debentures ....................................................

23

2.6

Issue of Global Debentures ............................................................................................

24

2.7

Execution of Debentures ................................................................................................

25

2.8

Certification....................................................................................................................

26

2.9

Interim Debentures or Certificates .................................................................................

26

2.10

Mutilation, Loss, Theft or Destruction .......................................................................

27

2.11

Concerning Interest.....................................................................................................

27

2.12

Debentures to Rank Pari Passu..................................................................................

28

2.13

Payments of Amounts Due on Maturity .....................................................................

28

2.14

Payment of Interest.....................................................................................................

29

- 3 -

2.15

Withholding Tax.........................................................................................................

30

ARTICLE 3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP.............

31

3.1

Fully-Registered Debentures..........................................................................................

31

3.2

Global Debentures or Book Based Only Debentures.....................................................

32

3.3

Transferee Entitled to Registration ................................................................................

35

3.4

No Notice of Trusts ........................................................................................................

35

3.5

Registers Open for Inspection ........................................................................................

35

3.6

Exchanges of Debentures ...............................................................................................

36

3.7

Closing of Registers .......................................................................................................

36

3.8

Charges for Registration, Transfer and Exchange .........................................................

37

3.9

Ownership of Debentures...............................................................................................

37

3.10

Non-Certificated Inventory System............................................................................

38

ARTICLE 4 REDEMPTION AND PURCHASE OF DEBENTURES AND CERTAIN

PAYMENTS ON MATURITY..................................................................................................

39

4.1

Applicability of Article ..................................................................................................

39

4.2

Partial Redemption.........................................................................................................

39

4.3

Notice of Redemption ....................................................................................................

40

4.4

Debentures Due on Redemption Date............................................................................

41

4.5

Deposit of Redemption Monies or Shares......................................................................

41

4.6

Right to Repay Redemption Price in Shares ..................................................................

41

4.7

Failure to Surrender Debentures Called for Redemption...............................................

44

4.8

Cancellation of Debentures Redeemed ..........................................................................

45

4.9

Purchase of Debentures by the Corporation...................................................................

45

4.10 Deposit of Maturity Monies .......................................................................................

46

4.11 Right to Repay Principal Amount in Shares...............................................................

46

4.12 Restrictions of Share Redemption Right and Share Repayment Right ......................

49

ARTICLE 5 SUBORDINATION OF DEBENTURES ...........................................................

50

5.1

Applicability of Article ..................................................................................................

50

5.2

Order of Payment ...........................................................................................................

50

5.3

Subrogation to Rights of Senior Creditors .....................................................................

52

5.4

Obligation to Pay Not Impaired .....................................................................................

52

5.5

No Payment if Senior Indebtedness in Default ..............................................................

52

5.6

Payment on Debentures Permitted .................................................................................

53

5.7

Confirmation of Subordination ......................................................................................

54

5.8

Knowledge of Debenture Trustee ..................................................................................

54

- 4 -

5.9

Debenture Trustee May Hold Senior Indebtedness........................................................

54

5.10

Rights of Holders of Senior Indebtedness Not Impaired............................................

55

5.11

Altering the Senior Indebtedness................................................................................

55

5.12

Additional Indebtedness .............................................................................................

55

5.13

Right of Debentureholder to Convert Not Impaired...................................................

55

5.14

Invalidated Payments..................................................................................................

55

5.15

Contesting Security.....................................................................................................

55

5.16

Obligations Created by Article 5 ................................................................................

56

5.17

No Set-Off ..................................................................................................................

56

5.18

Amendments to Article 5............................................................................................

56

ARTICLE 6 CONVERSION OF DEBENTURES ..................................................................

56

6.1

Applicability of Article ..................................................................................................

56

6.2

Notice of Expiry of Conversion Privilege......................................................................

57

6.3

Revival of Right to Convert ...........................................................................................

57

6.4

Manner of Exercise of Right to Convert ........................................................................

57

6.5

Adjustment of Conversion Rate .....................................................................................

59

6.6

No Requirement to Issue Fractional Shares ...................................................................

64

6.7

Corporation to Reserve Shares.......................................................................................

64

6.8

Cancellation of Converted Debentures ..........................................................................

65

6.9

Certificate as to Adjustment...........................................................................................

65

6.10

Notice of Special Matters ...........................................................................................

65

6.11

Protection of Debenture Trustee.................................................................................

66

6.12

Payment on Conversion..............................................................................................

66

ARTICLE 7 COVENANTS OF THE CORPORATION........................................................

67

7.1

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

68

7.2

To Pay Debenture Trustee's Remuneration ...................................................................

68

7.3

To Give Notice of Default..............................................................................................

68

7.4

Preservation of Existence, etc. .......................................................................................

68

7.5

Keeping of Books...........................................................................................................

68

7.6

Annual Certificate of Compliance..................................................................................

68

7.7

Performance of Covenants by Debenture Trustee..........................................................

69

7.8

Maintain Listing .............................................................................................................

69

ARTICLE 8 DEFAULT .............................................................................................................

69

8.1

Events of Default............................................................................................................

69

8.2

Notice of Events of Default............................................................................................

71

- 5 -

8.3

Waiver of Default...........................................................................................................

71

8.4

Enforcement by the Debenture Trustee..........................................................................

72

8.5

No Suits by Debentureholders........................................................................................

73

8.6

Application of Monies by Debenture Trustee ................................................................

74

8.7

Notice of Payment by Debenture Trustee ......................................................................

75

8.8

Debenture Trustee May Demand Production of Debentures .........................................

75

8.9

Remedies Cumulative ....................................................................................................

75

8.10

Judgment Against the Corporation .............................................................................

75

8.11

Immunity of Directors, Officers and Others...............................................................

76

ARTICLE 9 SATISFACTION AND DISCHARGE ...............................................................

76

9.1

Cancellation....................................................................................................................

76

9.2

Non-Presentation of Debentures ....................................................................................

76

9.3

Repayment of Unclaimed Monies or Shares..................................................................

77

9.4

Discharge........................................................................................................................

77

9.5

Satisfaction .....................................................................................................................

77

9.6

Continuance of Rights, Duties and Obligations .............................................................

79

ARTICLE 10 SHARE INTEREST PAYMENT ELECTION ................................................

80

10.1

Share Interest Payment Election.................................................................................

80

ARTICLE 11 SUCCESSORS ....................................................................................................

83

11.1

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

83

11.2

Vesting of Powers in Successor..................................................................................

84

ARTICLE 12 COMPULSORY ACQUISITION .....................................................................

85

12.1

Definitions ..................................................................................................................

85

12.2

Offer for Debentures...................................................................................................

85

12.3

Offeror's Notice to Dissenting Shareholders..............................................................

86

12.4

Delivery of Debenture Certificates.............................................................................

86

12.5

Payment of Consideration to Debenture Trustee........................................................

86

12.6

Consideration To Be Held in Trust.............................................................................

87

12.7

Completion of Transfer of Debentures to Offeror......................................................

87

12.8

Communication of Offer to the Corporation ..............................................................

87

ARTICLE 13 MEETINGS OF DEBENTUREHOLDERS.....................................................

88

13.1

Right to Convene Meeting..........................................................................................

88

13.2

Notice of Meetings .....................................................................................................

88

13.3

Chairman ....................................................................................................................

90

13.4

Quorum.......................................................................................................................

90