Convertible Debenture Indenture

  • View
    32

  • Download
    1

Embed Size (px)

DESCRIPTION

CONVERTIBLE DEBENTURE INDENTUREDATED AS OF SEPTEMBER 7, 2012, AMONGLAKE SHORE GOLD CORP. ANDCOMPUTERSHARE TRUST COMPANY OF CANADA PROVIDING FOR THE ISSUE OF DEBENTURES

Text of Convertible Debenture Indenture

  • CONVERTIBLE DEBENTURE INDENTURE

    DATED AS OF SEPTEMBER 7, 2012

    AMONG

    LAKE SHORE GOLD CORP.

    AND

    COMPUTERSHARE TRUST COMPANY OF CANADA

    PROVIDING FOR THE ISSUE OF DEBENTURES

  • ( i )

    TABLE OF CONTENTS

    Page

    ARTICLE 1 INTERPRETATION............................................................................................................................ 11.1 Definitions....................................................................................................................................... 1

    1.2 Meaning of "Outstanding"............................................................................................................ 7

    1.3 Interpretation.................................................................................................................................. 81.4 Headings, Etc.................................................................................................................................. 8

    1.5 Time of Essence .............................................................................................................................. 81.6 Monetary References ..................................................................................................................... 8

    1.7 Invalidity, Etc. ................................................................................................................................ 81.8 Language......................................................................................................................................... 8

    1.9 Successors and Assigns................................................................................................................. 81.10 Severability ..................................................................................................................................... 8

    1.11 Entire Agreement........................................................................................................................... 9

    1.12 Benefits of Indenture ..................................................................................................................... 91.13 Applicable Law and Attornment................................................................................................. 9

    1.14 Currency of Payment..................................................................................................................... 91.15 Non-Business Days........................................................................................................................ 9

    1.16 Accounting Terms.......................................................................................................................... 91.17 Calculations .................................................................................................................................... 9

    1.18 Schedules ...................................................................................................................................... 10

    ARTICLE 2 THE DEBENTURES.......................................................................................................................... 102.1 Limit of Debentures..................................................................................................................... 10

    2.2 Terms of Debentures of any Series ............................................................................................ 102.3 Form of Debentures ..................................................................................................................... 11

    2.4 Form and Terms of Initial Debentures...................................................................................... 122.5 Certification and Delivery of Additional Debentures ............................................................ 19

    2.6 Issue of Global Debentures......................................................................................................... 202.7 Execution of Debentures ............................................................................................................. 21

    2.8 Certification .................................................................................................................................. 212.9 Interim Debentures or Certificates ............................................................................................ 21

    2.10 Mutilation, Loss, Theft or Destruction ...................................................................................... 22

    2.11 Concerning Interest ..................................................................................................................... 222.12 Debentures to Rank Pari Passu .................................................................................................. 23

    2.13 Payments of Amounts Due on Maturity .................................................................................. 232.14 Payment of Interest...................................................................................................................... 23

    2.15 Withholding Tax .......................................................................................................................... 242.16 Right of Rescission....................................................................................................................... 24

    ARTICLE 3 REGISTRATION, TRANSFER, EXCHANGE AND OWNERSHIP ........................................ 253.1 Fully Registered Debentures ...................................................................................................... 25

    3.2 Global Debentures ....................................................................................................................... 253.3 Transferee Entitled to Registration............................................................................................ 27

    3.4 No Notice of Trusts...................................................................................................................... 28

    3.5 Registers Open for Inspection .................................................................................................... 283.6 Exchanges of Debentures............................................................................................................ 28

    3.7 Restrictions on Transfer of U.S. Debentures and U.S. Common Shares Under U.S. Securities Laws ........................................................................................................................................... 28

    3.8 Closing of Registers ..................................................................................................................... 303.9 Charges for Registration, Transfer and Exchange................................................................... 31

    3.10 Ownership of Debentures........................................................................................................... 31

  • ( ii )

    ARTICLE 4 REDEMPTION AND PURCHASE OF DEBENTURES AND CERTAIN PAYMENTS ON MATURITY .............................................................................................................................................................. 32

    4.1 Applicability of Article................................................................................................................ 324.2 Partial Redemption...................................................................................................................... 32

    4.3 Notice of Redemption ................................................................................................................. 33

    4.4 Debentures Due on Redemption Dates .................................................................................... 334.5 Deposit of Redemption Monies or Common Shares............................................................... 34

    4.6 Right to Repay Redemption Price in Common Shares ........................................................... 344.7 Failure to Surrender Debentures Called for Redemption ...................................................... 36

    4.8 Cancellation of Debentures Redeemed..................................................................................... 374.9 Purchase of Debentures by the Corporation............................................................................ 37

    4.10 Right to Repay Principal Amount in Common Shares........................................................... 374.11 Deposit of Maturity Monies ....................................................................................................... 40

    ARTICLE 5 CONVERSION OF DEBENTURES ............................................................................................... 405.1 Applicability of Article................................................................................................................ 405.2 Notice of Expiry of Conversion Privilege................................................................................. 40

    5.3 Revival of Right to Convert ........................................................................................................ 405.4 Manner of Exercise of Right to Convert.................................................................................... 41

    5.5 Adjustment of Conversion Price................................................................................................ 425.6 No Requirement to Issue Fractional Common Shares............................................................ 47

    5.7 Corporation to Reserve Common Shares ................................................................................. 485.8 Cancellation of Converted