##### 



EXHIBIT 1.1

|                 |  |                         
|---------------- |  | ------------------------
|Industry Canada  |  | Industrie Canada        
|                 |  |                         
|Certificate      |  | Certificat              
|of Incorporation |  | de constitution         
|                 |  |                         
|Canada Business  |  | Loi canadienne sur      
|Corporations Act |  | les sociétés par actions

|                                                                                                                                                                     |  |                                                                                                                                                                            
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|4130910 CANADA INC.                                                                                                                                                  |  | 413091-0                                                                                                                                                                   
|                                                                                                                                                                     |  |                                                                                                                                                                            
|                                                                                                                                                                     |  |                                                                                                                                                                            
|                                                                                                                                                                     |  |                                                                                                                                                                            
|Name of corporation -Dénomination de la société                                                                                                                      |  | Corporation number-Numéro de la société                                                                                                                                    
|                                                                                                                                                                     |  |                                                                                                                                                                            
|I hereby certify that the above-named
corporation, the articles of incorporation of
which are attached, was incorporated under
the Canada Business Corporations Act. |  | Je certifie que la société susmentionnée, dont
les statuts constitutifs sont joints, a été
constituée en société en vertu de laLoi canadienne sur les sociétés par actions.
|                                                                                                                                                                     |  |                                                                                                                                                                            
|(-s-)                                                                                                                                                                |  | April28, 2003 /le28 avril 2003                                                                                                                                             
|                                                                                                                                                                     |  |                                                                                                                                                                            
|Director - Directeur                                                                                                                                                 |  | Date of Incorporation - Date de constitution                                                                                                                               





---



##### 



CANADA BUSINESS
CORPORATIONS ACTFORM 1
ARTICLES OF INCORPORATION
(SECTION 6)



|1 - |  | Name of the Corporation                                                                                     
|--- |  | ------------------------------------------------------------------------------------------------------------
|   
|    |  | 4130910 CANADA INC.                                                                                         
|   
|2 - |  | The province or territory in Canada where the registered office is situated                                 
|   
|    |  | Province of Quebec                                                                                          
|   
|3 - |  | The classes and any maximum number of shares that the Corporation is
authorized to issue                    
|   
|    |  | See the provisions of Schedule 1 which form an integral part of the
articles of incorporation.              
|   
|4 - |  | Restrictions, if any, on share transfers                                                                    
|   
|    |  | Restrictions, if any, are stated in Schedule 1 which form an integral
part of the articles of incorporation.
|   
|5 - |  | Number (or minimum and maximum number) of directors                                                         
|   
|    |  | A minimum of one (1) director and a maximum of fifteen (15) directors.                                      
|   
|6 - |  | Restrictions, if any, on the business the Corporation may carry on                                          
|   
|    |  | None.                                                                                                       
|   
|7 - |  | Other provisions, if any                                                                                    
|   
|    |  | None.                                                                                                       
|   
|8 - |  | Incorporators                                                                                               

| |                 |  |                                                                    
| | --------------- |  | -------------------------------------------------------------------
| | Name            |  | Address                                                            
|
| | Claire Zikovsky |  | 1155 René-Lévesque Blvd. West, 40th Floor
Montreal, Quebec

H3B 3V2





---



##### 



-2-

|                          |  |                
|------------------------- |  | ---------------
|Date                      |  | Signature      
|                          |  |                
|April     ,2003           |  |                
|                          |  | Claire Zikovsky
|                          |  |                
|                         
|FOR DEPARTMENTAL USE ONLY
|                          |  |                
|Corporation No.           |  | Filed          





---



##### 



SCHEDULE 1



|1 - |  | The classes and any maximum number of shares that the Corporation is
authorized to issue
|--- |  | ----------------------------------------------------------------------------------------
|   
|    |  | Unlimited number of common shares.                                                      



| |  | 1. | The common shares shall have attached thereto the following
rights, privileges, restrictions and conditions:
| |  | -- | ------------------------------------------------------------------------------------------------------------

|
|
|
|
|
|
|





---



##### 



CANADA BUSINESS
CORPORATIONS ACTFORM 3
NOTICE OF REGISTERED OFFICE OR
NOTICE OF CHANGE OF ADDRESS
OF REGISTERED OFFICE
(SECTION 19)



|1 - |  | Name of the Corporation                                                                     
|--- |  | --------------------------------------------------------------------------------------------
|   
|    |  | 4130910 CANADA INC.                                                                         
|   
|2 - |  | Corporation No.                                                                             
|   
|    |  | 4130910                                                                                     
|   
|3 - |  | Province or territory in Canada where the registered office is situated
(or to be situated).
|   
|    |  | Province of Quebec                                                                          
|   
|4 - |  | Street address of registered office                                                         
|   
|    |  | 1250 René-Lévesque Blvd. West                                                               
|    |  | 38th Floor                                                                                  
|    |  | Montréal, Québec H5A 1K3                                                                    
|   
|5 - |  | Effective date of change                                                                    
|   
|    |  | Not applicable                                                                              
|   
|6 - |  | Previous address of registered office                                                       
|   
|    |  | Not applicable                                                                              





---



##### 



- 2 -

|                          |  |                
|------------------------- |  | ---------------
|Date                      |  | Signature      
|                          |  |                
|April     , 2003          |  |                
|                          |  |                
|7 -     Capacity of       |  |                
|                          |  | Printed Name   
|                          |  |                
|Incorporator              |  | Claire Zikovsky
|                         
|FOR DEPARTMENTAL USE ONLY
|                          |  |                
|Filed                     |  |                





---



##### 



CANADA BUSINESS
CORPORATIONS ACTFORM 6
NOTICE OF DIRECTORS,
NOTICE OF CHANGE OF DIRECTORS OR
NOTICE OF CHANGE OF ADDRESS OF A
PRESENT DIRECTOR
(SECTIONS 106 and 113(1))



|1 - |  | Name of the Corporation                                   
|--- |  | ----------------------------------------------------------
|   
|    |  | 4130910 CANADA INC.                                       
|   
|2 - |  | Corporation No.                                           
|   
|    |  | 413091-0                                                  
|   
|3 - |  | The following persons became directors of this Corporation

| |  |                         |  |                                               
| |  | ----------------------- |  | ----------------------------------------------
| |  | Effective date:         |  | Not applicable                                
| |  |                         |  |                                               
| |  | Name                    |  | André Tremblay                                
| |  |                         |  |                                               
| |  | Residential address     |  | 227 Outremont Avenue
Outremont, Québec
H2V 3L9
| |  |                         |  |                                               
| |  | Resident Canadian - Y/N |  | Y                                             



|4 - |  | The following persons ceased to be directors of this Corporation
|--- |  | ----------------------------------------------------------------

| |  |                     |  |               
| |  | ------------------- |  | --------------
| |  | Effective date:     |  | Not applicable
| |  |                     |  |               
| |  | Name                |  |               
| |  |                     |  |               
| |  | Residential address |  |               





---



##### 



- 2 -



|5 - |  | The directors of this Corporation now are
|--- |  | -----------------------------------------

| |  |                         |  |                     
| |  | ----------------------- |  | --------------------
| |  | Name                    |  | André Tremblay      
| |  |                         |  |                     
| |  | Residential address     |  | 227 Outremont Avenue
| |  |                         |  | Outremont, Québec   
| |  |                         |  | H2V 3L9             
| |  |                         |  |                     
| |  | Resident Canadian - Y/N |  | Y                   



|6 - |  | Change of address of a present director
|--- |  | ---------------------------------------

| |  |                            |  |               
| |  | -------------------------- |  | --------------
| |  | Effective date:            |  | Not applicable
| |  |                            |  |               
| |  | Name                       |  |               
| |  |                            |  |               
| |  | Former residential address |  |               
| |  |                            |  |               
| |  | New residential address    |  |               

|                          |  |                
|------------------------- |  | ---------------
|Date                      |  | Signature      
|                          |  |                
|April     ,2003           |  |                
|                          |  |                
|7 -     Capacity of       |  |                
|                          |  | Printed Name   
|                          |  |                
|Incorporator              |  | Claire Zikovsky
|                          |  |                
|                         
|FOR DEPARTMENTAL USE ONLY
|                          |  |                
|Filed                     |  |                





---



##### 



|                 |  |                         
|---------------- |  | ------------------------
|Industry Canada  |  | Industrie Canada        
|                 |  |                         
|Certificate      |  | Certificat              
|of Amendment     |  | de modification         
|                 |  |                         
|Canada Business  |  | Loi canadienne sur      
|Corporations Act |  | les sociétés par actions
|                 |  |                         

|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------- |  | --------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|MICROCELL TÉLÉCOMMUNICATIONS INC./                                              |  |                                                                                                                                          |  |                                                                           |  |                                        
|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|MICROCELL TÉLÉCOMMUNICATIONS INC.                                               |  |                                                                                                                                          |  |                                                                           |  | 413091-0                               
|                                                                                |  |                                                                                                                                          |  |                                                                          
|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|Name of corporation -Dénomination de la société                                 |  |                                                                                                                                          |  |                                                                           |  | Corporation number-Numéro de la société
|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|I hereby certify that the articles of the above-named corporation were amended: |  |                                                                                                                                          |  | Je certifie que les statuts de la société susmentionnée ont été modifiés:
|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|a)                                                                              |  | under section 13 of the Canada
Business Corporations Actin
accordance with the attached notice;                                          |  | o                                                                         |  | a)                                      |  | en vertu de larticle 13 de la Loi
canadienne sur les sociétés par
actions,conformément à lavis ci-joint;                                                                 
|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|b)                                                                              |  | under section 27 of the Canada
Business Corporations Actas set out in
the attached articles of amendment
designating a series of shares; |  | o                                                                         |  | b)                                      |  | en vertu de larticle 27 de la Loi
canadienne sur les sociétés par
actions, tel quil est indiqué dans les
clauses modificatrices ci-jointes
désignant une série dactions;
|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|c)                                                                              |  | under section 179 of the Canada
Business Corporations Actas set out in
the attached articles of amendment;                               |  | þ                                                                         |  | c)                                      |  | en vertu de larticle 179 de la Loi
canadienne sur les sociétés par
actions, tel quil est indiqué dans les
clauses modificatrices ci-jointes;                             
|                                                                                |  |                                                                                                                                          |  |                                                                           |  |                                         |  |                                                                                                                                                                            
|d)                                                                              |  | under section 191 of the Canada
Business Corporations Actas set out in
the attached articles of reorganization;                          |  | o                                                                         |  | d)                                      |  | en vertu de larticle 191 de la Loi
canadienne sur les sociétés par
actions, tel quil est indiqué dans les
clauses de réorganisation ci-jointes;                          

|                     |  |                                         
|-------------------- |  | ----------------------------------------
|(-s-)                |  | May 1, 2003 / le 1 mai 2003             
|Director - Directeur |  | Date of Amendment - Date de modification





---



##### 



CANADA BUSINESS
CORPORATIONS ACTFORM 4
ARTICLES OF AMENDMENT
(SECTION 27 OR 177)



|1 - |  | Name of the Corporation                                            
|--- |  | -------------------------------------------------------------------
|   
|    |  | 4130910 CANADA INC.                                                
|   
|2 - |  | Corporation No.                                                    
|   
|    |  | 413091-0                                                           
|   
|3 - |  | The articles of the above-named Corporation are amended as follows:



| | Section 1 of the articles of incorporation be and the same is hereby
deleted and replaced by the following:
| | -----------------------------------------------------------------------------------------------------------
|
| | 1 -                                                                                                        
|
| |                                                                                                            

|                          |  |               
|------------------------- |  | --------------
|Date                      |  | Signature     
|                          |  |               
|April 30, 2003            |  |               
|                          |  |               
|                          |  | Printed Name  
|Capacity of               |  |               
|                          |  |               
|Director                  |  | André Tremblay
|                          |  |               
|                         
|FOR DEPARTMENTAL USE ONLY
|                          |  |               
|Filed                     |  |               





---



##### 



|                                 |  |                                            
|-------------------------------- |  | -------------------------------------------
|Industry Canada                  |  | Industrie Canada                           
|                                 |  |                                            
|Certificate of Arrangement       |  | Certificat darrangement                   
|                                 |  |                                            
|Canada Business Corporations Act |  | Loi canadienne sur les sociétés par actions

|                                                     |  |                                                    
|---------------------------------------------------- |  | ---------------------------------------------------
|MICROCELL TELECOMMUNICATIONS
INC.                    |  | 413091-0                                           
|                                                     |  |                                                    
|                                                     |  |                                                    
|                                                     |  |                                                    
|Name CBCA corporation(s) involved -                  |  | Corporation number-Numéro de la société            
|Dénomination de la (des) société(s)                  |  |                                                    
|I.C.S.A. concernée(s)                                |  |                                                    
|                                                     |  |                                                    
|I hereby certify that the arrangement set out in the |  | Je certifie que larrangement mentionné dans les   
|attached articles of arrangement, involving the      |  | clauses darrangement annenées, concernant la      
|above-mentioned corporation(s), has been effected    |  | (les) société(s) susmentionnée(s), a pris effet en 
|under section 192 of the Canada Business             |  | vertu de larticle 192 de la Loi Canadienne sur les
|Corporations Act.                                    |  | sociétés par actions.                              
|                                                     |  |                                                    
|(-s-)                                                |  | May 1, 2003 / le 1 mai 2003                        
|                                                    
|Director - Directeur                                 |  | Date of Amendment - Date de modification           





---



##### 



- 2 -

|                 |  |                        |  |                         |  |                      
|---------------- |  | ---------------------- |  | ----------------------- |  | ---------------------
|Industry Canada  |  | Industrie Canada       |  | FORM 14.1               |  | FORMULE 14.1         
|                 |  |                        |  | ARTICLES OF ARRANGEMENT |  | CLAUSES DARRANGEMENT
|Canada Business  |  | Loi canadienne sur les |  | (SECTION 192)           |  | (ARTICLE 192)        
|Corporations Act |  | sociétés par actions   |  |                         |  |                      

|                                  |  |                                                                                   |  |      |  |                                                              
|--------------------------------- |  | --------------------------------------------------------------------------------- |  | ---- |  | -------------------------------------------------------------
|1 -                               |  | Name of applicant corporation(s)  Dénomination de la (des) requérante(s)         |  | 2 -  |  | Corporation No(s).                                           
|                                  |  |                                                                                   |  |      |  | No(s) de la(des) société(s)                                  
|MICROCELL TELECOMMUNICATIONS INC. |  | 413091-0                                                                         
|(formerly 4130910 Canada Inc.)    |  |                                                                                   |  |     
|                                 
|3 -                               |  | Name of the corporation(s) the articles of which are amended, if applicable       |  | 4 -  |  | Corporation No(s).                                           
|                                  |  | Dénomination de la(des) société(s) dont les statuts sont modifies, le cas échéant |  |      |  | No(s) de la(des) société(s)                                  
|                                  |  | 413091-0                                                                         
|MICROCELL TELECOMMUNICATIONS INC. |  |                                                                                  
|(formerly 4130910 Canada Inc.)    |  |                                                                                   |  |     
|                                 
|5 -                               |  | Name of the corporation(s) created by amalgamation, if applicable                 |  | 6 -  |  | Corporation No(s).                                           
|                                  |  | Dénomination de la(des) société(s) issue(s) de la(des) fusion(s), le cas échéant  |  |      |  | No(s) de la(des) société(s)                                  
|                                 
|7 -                               |  | Name of the dissolved corporation(s), if applicable                               |  | 8 -  |  | Corporation No(s).                                           
|                                  |  | Dénomination de la(des) société(s) dissoute(s), le cas échéant                    |  |      |  | No(s) de la(des) société(s)                                  
|                                 
|9 -                               |  | Name of other bodies corporate involved, if applicable                            |  | 10 - |  | Corporation No(s). or jurisdiction of incorporation          
|                                  |  | Dénomination des autres personnes morales en cause, le cas échéant                |  |      |  | No(s) de la(des) société(s)/ou loi sous le regime de laquelle
|                                  |  |                                                                                   |  |      |  | elle est constituée                                          

|     |  |                                                                                                                     |  |   |  |                                                                                                                  
|---- |  | ------------------------------------------------------------------------------------------------------------------- |  | - |  | -----------------------------------------------------------------------------------------------------------------
|11 - |  | In accordance with the order approving the arrangement                                                              |  |   |  | Conformément aux termes de lordonnance approuvant larrangement                                                 
|     |  |                                                                                                                     |  |   |  |                                                                                                                  
|(a)  |  | the articles of the above-named corporation(s) are amended in accordance with the attached plan of arrangement      |  | þ |  | les statuts de la(des) sociétés susmentionnée(s) sont modifies en conformité avec le plan darrangement ci-joint:
|     |  |                                                                                                                     |  |   |  |                                                                                                                  
|(b)  |  | the following bodies corporate are amalgamated in accordance with
the attached plan of arrangement                  |  | o |  | les personnes morales suivantes sont fusionnées conformément au plan darrangement ci-joint                      
|     |  |                                                                                                                     |  |   |  |                                                                                                                  
|(c)  |  | the above-named corporation(s) is(are) liquidated and dissolved in
accordance with the attached plan of arrangement |  | o |  | la(les) sociétés susmentionnée(s) est(sont) liquidées et dissoute(s) conformément au plan darrangement ci-joint 
|     |  |                                                                                                                     |  |   |  |                                                                                                                  
|(d)  |  | the plan of arrangement attached hereto, involving the above-named
body(ies), corporate is hereby effected          |  | þ |  | le plan darrangement ci-joint portant sur la(les) personnes(s) morale(s) susmentionnée(s) prend effet           

|     |  |           |  |                                                            
|---- |  | --------- |  | -----------------------------------------------------------
|Date |  | Signature |  | Title  Titre                                              
|     |  |           |  |                                                            
|     |  |           |  |                                                            
|     |  |           |  | FOR DEPARMENTAL USE ONLY  À LUSAGE DU MINISTÈRE SEULEMENT
|     |  |           |  | Filed  Déposée                                            
|     |  |           |  |                                                            





---



##### 



PLAN OF ARRANGEMENT
UNDER SECTION 192
OF THE CANADA BUSINESS CORPORATIONS ACT

WHEREAS2861399 Canada Inc. (formerly known as Microcell Telecommunications
Inc.) received the sanction of the Superior Court of the Province of Quebec on
March 18th, 2003 (Sanction Order) in respect of a plan of reorganization and
of compromise and arrangement dated February 17, 2003 under the Companies
Creditors Arrangement Act(Canada) and the Canada Business Corporations Act
(CBCA) in respect of such corporation and certain of its subsidiaries (as
amended, the Microcell Plan);

WHEREASthe Microcell Plan provides for, inter alia, the incorporation of the
Applicant (as defined herein) pursuant to the CBCA and the appointment, as the
last step of the transactions contemplated by the Microcell Plan and
immediately prior to the Microcell Plan becoming effective, of a new board of
directors of the Applicant, the members of which shall be appointed with
staggered terms;

WHEREASthe present Plan of Arrangement is required to give effect to such
appointment of directors of the Applicant as contemplated by the Microcell
Plan.

ARTICLE 1.
INTERPRETATION

Section 1.1.     Definitions

In this Plan of Arrangement, unless there is something in the subject matter or
context inconsistent therewith, the following terms shall have the respective
meanings set out below and grammatical variations of such terms shall have
corresponding meanings:



| |  | Applicant means Microcell Telecommunications Inc. (formerly known as
4130910 Canada Inc.), a corporation incorporated pursuant to the CBCA.                                                                                                                                                                           
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Arrangement means an arrangement in respect of the Applicant under
section 192 of the CBCA on the terms and subject to the conditions set
out in this Plan of Arrangement, subject to any amendments or variations
thereto made in accordance with Article 3 or made at the direction of the
Court in the Final Order.
|
| |  | Arrangement Resolution means a resolution of the sole director of the
Applicant approving the Arrangement and the filing of the Articles of
Arrangement.                                                                                                                                                              
|
| |  | Articles of Arrangement means the articles of arrangement of the
Applicant in respect of the Arrangement to be filed with the Director,
effective on the Effective Date.                                                                                                                                              
|
| |  | Articles of Incorporation means the articles of incorporation of the
Applicant dated April 28, 2003.                                                                                                                                                                                                                  
|
| |  | Board means the board of directors of the Applicant, from time to time.                                                                                                                                                                                                                                               
|
| |  | CBCA has the meaning set forth in the preamble to this Plan of
Arrangement.                                                                                                                                                                                                                                           





---



##### 



- 2 -



| |  | Certificate means the certificate of arrangement giving effect to the
Arrangement, issued pursuant to subsection 192(7) of the CBCA, and dated
the Effective Date.                                                                                      
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Court means the Superior Court of Quebec, District of Montreal.                                                                                                                                                                                         
|
| |  | Director mean the Director appointed pursuant to section 260 of the
CBCA.                                                                                                                                                                               
|
| |  | Effective Date means the date of implementation of the Microcell Plan.                                                                                                                                                                                  
|
| |  | Effective Time has the meaning ascribed to such term in Section 2.2.                                                                                                                                                                                    
|
| |  | Final Order means the order of the Court approving the Arrangement as
such order may be amended by the Court at any time prior to the Effective
Date.                                                                                                   
|
| |  | Microcell Plan has the meaning ascribed thereto in the preamble to this
Plan of Arrangement; a copy of the Microcell Plan, as implemented, is
part of the corporate records of the Corporation maintained in accordance
with the provisions of the CBCA.
|
| |  | Sanction Order has the meaning ascribed thereto in the preamble to this
Plan of Arrangement.                                                                                                                                                            

Section 1.2.      Sections and Headings

The division of this Plan of Arrangement into sections and the insertion of
headings are for reference purposes only and shall not affect the
interpretation of this Plan of Arrangement.

Section 1.3.      Number, Gender and Persons

In this Plan of Arrangement, unless the context otherwise requires, words
importing the singular number include the plural and vice versa and words
importing any gender include all genders.

ARTICLE 2.
ARRANGEMENT

Section 2.1.      Binding Effect

This Plan of Arrangement will become effective at, and be binding as at and
after, the Effective Time.

Section 2.2.     Arrangement



|(1) |  | The Articles of Incorporation are amended as at the first moment in time
on the Effective Date by replacing the Schedule 1 attached to the Articles
of Incorporation by a new Schedule 1 in the form of the Schedule 1
attached to this Plan of Arrangement as Schedule A.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | The Articles of Incorporation are further amended on the Effective Date
and at such moment in time as is contemplated by the sequence of
transactions provided in Section 3.2 of the Microcell Plan, being
immediately prior to the effectiveness of the Microcell          





---



##### 



- 3 -



|    |  | Plan (the Effective Time) by deleting the words A minimum of one (1)
director and a maximum of eleven (11) directors in Section 5 of such articles
titled Number (or minimum and maximum numbers of directors) and adding
therein the words Eleven (11) directors.                                                                                                                                                                                                                                                                                                               
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(3) |  | (a)     After giving effect to the amendment
described in Section 2.2(2) above, effective
at the Effective Time, and without any
further act, corporate approvals or other
formality, the individuals listed in the
attached Schedule B shall be appointed to
the Board.                                                                                                                                                                                                                                                                                                               
|   
|    |  | (b)     The Board shall be divided into two groups: a first group (Group A)
to consist of six directors appointed to hold office for a stated term
expiring at the close of the third annual meeting of shareholders
following the Effective Date and a second group (Group B) to consist of
five directors appointed to hold office for a stated term expiring at the
close of the second annual meeting of shareholders following the
Effective Date. Schedule B identifies, in respect of each individual
listed therein, whether such individual is part of Group A or Group B.
|   
|(4) |  | (a)     After giving effect to the amendments described in Section 2.2(2) and
(3) above, the Articles of Incorporation are further amended as at the
Effective Time by deleting the word None in Section 7 of such Articles
titled Other provisions, if any and adding therein the words Schedule 2
is hereby incorporated in the Articles, whereupon the Articles of
Incorporation shall be further amended to include a Schedule 2, in the
form of the Schedule 2 attached to this Plan of Arrangement as Schedule
C.                                                          
|   
|    |  | (b)     For the purpose of section 1.2 of Schedule 2 to be attached to the
articles of the Applicant pursuant to Section 2.2(4)(a) above, the
following individuals shall be deemed to have been nominated and elected
by holders of First Preferred Voting Shares (as defined in Schedule 2)
(or First Voting Units (as defined in Schedule 2), as the case may be):
Messrs. André Bureau, Jim Continenza, Christian Dubé, Gary Goertz, Robert
Latham, Paul McFarlane and Berl Nadler.                                                                                                  

ARTICLE 3.
AMENDMENTS

Section 3.1.      Amendments to Plan of Arrangement

The Applicant reserves the right to amend, modify and/or supplement this Plan
of Arrangement at any time and from time to time prior to the Effective Date,
provided that each such amendment, modification and/or supplement must be (i)
set out in writing and (ii) filed with and approved by the Court.





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ARTICLE 4.
FURTHER ASSURANCES

Section 4.1.      Further Assurances

Notwithstanding that the transactions and events set out herein shall occur and
be deemed to occur in the order set out in this Plan of Arrangement without any
further act or formality, the Applicant may make, do and execute, or cause to
be made, done and executed, all such further acts, deeds, agreements,
transfers, assurances, instruments or documents as may reasonably be required
in order to further document or evidence any of the transactions or events set
out herein.





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SCHEDULE A
TO THE PLAN OF ARRANGEMENT UNDER SECTION 192
OF THE CANADA BUSINESS CORPORATIONS ACT

FORM OF SCHEDULE 1 TO THE ARTICLES OF THE APPLICANT

See attached.





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SCHEDULE I



| |  | GENERAL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | A)     Definitions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | In this Schedule I, the following terms and expressions shall have the
meaning ascribed thereto, unless specifically otherwise stated:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | 1933 Act means the United States Securities Act of 1933, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Act means the Canada Business Corporations Actand the Regulations
enacted thereunder as amended from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | affiliate has the meaning ascribed to affiliated companies in the
Securities Act(Quebec) as amended from time to time, provided that for
purposes of applying the definition, any partnership will be considered
to be a company the shareholders of which are the shareholders of its
general partner or managing partner.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Articles means the articles of incorporation of the Corporation to
which are attached this Schedule I.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | Asset Disposition means, with respect to any Reference Entity, the
sale, lease, license, transfer, assignment or other disposition of, or
the expropriation, condemnation, destruction or other loss of, all or any
portion of its business, assets, rights, revenues or property, real,
personal or mixed, tangible or intangible, whether in one transaction or
a series of transactions pursuant to which the disposing party shall
receive, in payment thereof, cash or a cash equivalent, other than (i)
inventory sold in the ordinary course of business upon customary credit
terms, (ii) sales of scrap or obsolete material or equipment which are
not material in the aggregate, (iii) sales or other dispositions of
assets which are not in the ordinary course of business or leases of real
property or personal property (under which a Reference Entity is party),
in any such case, which have a Fair Market Value less than Cdn$2,000,000
for any transaction and less than Cdn$2,000,000 for all such series of
transactions in any fiscal year and which are no longer used or useful in
the business, (iv) licenses granted to third parties in the ordinary
course of business, and (v) property sold to another Reference Entity.
In the case of an expropriation, condemnation, destruction or other loss
of any property, any insurance proceeds or other indemnity received as a
result of such event may be used within the 90-day period following the
receipt of such insurance proceeds or other indemnity to replace the
property so disposed of and such sale or disposition will not constitute
an Asset Disposition.
|
| |  | associate has the meaning ascribed thereto in the Securities Act
(Quebec) as amended from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                





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| |  | Average Common Share Price means, as at any particular date, the
weighted average trading price on the TSX (or if not listed on the TSX,
on any other Recognized Exchange on which such shares are traded) per
share of the Class A Restricted Voting Shares and Class B Non-Voting
Shares during the twenty (20) consecutive trading days ending five (5)
trading days prior to such date.                                                                                                                                                                                                                                                                                         
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Board means the board of directors of the Corporation as appointed from
time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Business Day means a day, other than Saturday, Sunday or a statutory
holiday, on which banks are generally open for business in Montreal,
Quebec, Toronto, Ontario and New York, New York.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Canadian means a Canadian within the meaning of such term in the
Canadian Telecommunications Common Carrier Ownership and Control
Regulations SOR/94-667 enacted pursuant to the Telecommunications Act.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Canadian Ownership and Control Provisions means Canadian ownership and
control provisions established in the Telecommunications Act, in the
Radiocommunications Act, and related regulations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Capital Expenditures means, for any period, all consolidated
expenditures of the Reference Entities (whether paid in cash or accrued
as a liability, including the portion of Capital Lease Obligations
originally incurred during such period that are capitalized) during such
period that, in conformity with GAAP, are included in capital
expenditures, additions to property, plant or equipment or comparable
items, but excluding for the restoration, repair or replacement of any
fixed or capital asset that was destroyed or damaged, in whole or in
part, in an amount not exceeding any insurance proceeds received in
connection with such destruction or damage.
|
| |  | Capital Lease Obligations means the obligations of the Reference
Entities to pay rent or other amounts under any lease (or other
arrangement conveying the right to use) of real or personal property, or
a combination thereof, which obligations are required to be classified
and accounted for as capital leases on the consolidated balance sheet of
the Corporation under GAAP, and the amount of such obligations shall be
the capitalized amount thereof determined in accordance with GAAP.                                                                                                                                                                                
|
| |  | Class A Restricted Voting Shares has the meaning ascribed thereto in
Section 1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Class B Non-Voting Shares has the meaning ascribed thereto in Section
2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Constrained Class means persons who are not Canadians.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Corporation means Microcell Telecommunications Inc., formerly 4130910
Canada Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Corporation Transaction Notice means a written notice from the
Corporation to each person who, at the date of such mailing or delivery
or on the record date fixed for such purpose, is the person registered in
the records of the Corporation as the holder of the                                                                                                                                                                                                                                                                                                                                                                                                                





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| |  | Transaction Shares to be redeemed, converted or exchanged, as the case
may be. Such notice shall be delivered to, or mailed by ordinary prepaid
post addressed to, the last address of such holder as it appears in the
records of the Corporation, or in the event of the address of any such
holder not appearing in the records of the Corporation, then to the last
address of such holder known to the Corporation, at least ten (10)
Business Days before the date specified for redemption, conversion or
exchange, as the case may be. Such notice shall describe the redemption,
conversion or exchange being effected, as the case may be, the date on
which same is to take place and, if part only of the Transaction Shares
held by the person to whom it is addressed is to be redeemed, converted
or exchanged, as the case may be, the number thereof to be so redeemed,
converted or exchanged, as the case may be.                            
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Credit Facilities means, collectively, the credit agreements governing
the Tranche A Exit Facility, Tranche B Debt and Tranche C Debt,
respectively, as amended, restated or supplemented from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | Distress Preferred Shares means shares that qualify as distress
preferred shares for purposes of the ITA.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | EBITDA means operating income (loss) of the Corporation excluding
restructuring charges, impairment of intangible assets, depreciation and
amortization, all calculated in accordance with GAAP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | ECF EBITDA means operating income (loss) plus, to the extent deducted
in calculating operating income (loss), non-cash restructuring charges,
impairment of intangible assets, depreciation and amortization, all as
calculated in accordance with GAAP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Effective Date means the date upon which the Plan is implemented and
becomes effective in accordance with its terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Equity Securities means any and all shares, interests, participations,
rights in, or other equivalents (however designated and whether voting
and non-voting) of a Reference Entitys capital, whenever issued,
including any interest in a partnership, limited partnership or other
similar entity and any beneficial interest in a trust, and any and all
rights, warrants, options or other rights exchangeable for or convertible
into any of the foregoing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Excess Cash Flow means, for any fiscal year of the Corporation,
consolidated ECF EBITDA of the Reference Entities for such period minus
the sum (without duplication) of (i) scheduled principal payments made by
the Reference Entities in respect of the Tranche B Debt during such
period and scheduled principal payments made by the Reference Entities in
respect of the Tranche C Debt during such period, (ii) principal payments
made by the Reference Entities during such period under the Tranche A
Exit Facility (including, under any Permitted Additional Exit Facility
Debt), to the extent that such payments result in a corresponding
decrease in the commitment amounts under the Tranche A Exit Facility,
(iii) the principal portion of scheduled payments made by the Reference
Entities on Capital Lease Obligations to the extent such Capital Lease
Obligations and payments are permitted under the Tranche A Exit Facility
and the





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| |  | Tranche B Debt, (iv) cash interest paid by the Reference Entities in
respect of such fiscal year, (v) Capital Expenditures made by the
Reference Entities during such fiscal year to the extent permitted by the
Tranche A Exit Facility and the Tranche B Debt and (vi) cash taxes
applicable to such fiscal year paid or payable by the Reference Entities
prior to the date of determination.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Fair Market Value means (a) with respect to any asset or group of
assets (other than a marketable security) at any date, the value of the
consideration obtainable in a sale of such asset at such date assuming a
sale by a willing seller to a willing purchaser dealing at arms length
and arranged in an orderly manner over a reasonable period of time having
regard to the nature and characteristics of such asset, or, if such asset
shall have been the subject of a relatively contemporaneous appraisal by
an independent third party appraiser, the basic assumptions underlying
which have not materially changed since its date, the value set forth in
such appraisal, and (b) with respect to any marketable security at any
date, the closing sale price of such marketable security on the Business
Day next preceding such date, or, if there is no such closing sale price
of such marketable security, the final price for the purchase of such
marketable security at face value quoted on such business day by a
leading financial institution.
|
| |  | First Instruments means the First Preferred Voting Shares, First Voting
Units, First Preferred Non-Voting Shares and First Non-Voting Units,
collectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | First Non-Voting Unit means a First Unit which includes a First
Preferred Non-Voting 2 Share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | First Notes means a series of subordinated convertible 9% notes of the
Corporation in an amount equal to the aggregate FPS Redemption Price
included in the First Units issuable pursuant to a certain First Unit
Indenture between the Corporation and Computershare Trust Company of
Canada as trustee to be dated the Effective Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | First Preferred Non-Voting Shares has the meaning ascribed thereto in
Subsection 3.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | First Preferred Non-Voting 2 Shares has the meaning ascribed thereto in
Subsection 3.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |  | First Preferred Voting Shares has the meaning ascribed thereto in
Subsection 3.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | First Preferred Voting 2 Shares has the meaning ascribed thereto in
Subsection 3.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | First Unit means a unit consisting of a First Note together with one
First Preferred Voting 2 Share or one First Preferred Non-Voting 2 Share,
as the case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | First Voting Unit means a First Unit which includes a First Preferred
Voting 2 Share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | FPS Accretion Amount means, as at any particular date, the amount equal
to: the product obtained by the multiplication of (X) 0.045 by (Y) the
FPS Redemption Price as                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  





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| |  | of the end of the immediately preceding semi-annual period (as calculated
from time to time).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | FPS Redemption Price means $15.00 per First Preferred Voting Share or
per First Preferred Non-Voting Share as adjusted from time to time as set
forth herein, as the case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | FPS2 Redemption Price means $0.0001 per First Preferred Voting 2 Share
or per First Preferred Non-Voting 2 Share, as the case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Fundamental Transaction means any amalgamation, arrangement, capital
reorganization or other form of business combination of the Corporation
with or into any other corporation resulting in (i) any reclassification
or exchange of the outstanding Class A Restricted Voting Shares or Class
B Non-Voting Shares, as the case may be, into other shares or securities
of the Corporation or (ii) an adjustment in the number of the outstanding
Class A Restricted Voting Shares or Class B Non-Voting Shares, as the
case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Funded Debt means obligations in respect of borrowed money, whether
arising under credit agreements, notes, debentures or other debt
instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | GAAP means generally accepted accounting principles in Canada as in
effect from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Grandfathered Holder has the meaning set forth in Section 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Holder Transaction Notice means a written notice to the transfer agent
of the Transaction Shares executed by the person registered in the
records of the Corporation as the holder of the Transaction Shares, or by
his or her attorney duly authorized in writing and specifying the number
of Transaction Shares which the holder thereof desires to have exchanged
or converted, as the case may be, and accompanied by: (a) if share
certificates were issued to such holder, the share certificate or
certificates representing the Transaction Shares which such holder
desires to exchange or convert; (b) letters of transmittal, directions,
transfers, powers of attorney and other documentation duly completed and
executed by the person registered in the records of the Corporation as
the holder of the Transaction Shares to be exchanged or converted or by
his or her attorney duly authorized in writing as is specified by the
transfer agent for the Transaction Shares, acting reasonably, as being
required to give full effect to the exchange or conversion; (c) a
statement as to the class or series of shares into which the Transaction
Shares are being exchanged or converted; and (d) a duly completed and
executed Residency Declaration, if applicable.
|
| |  | Initial Issue Price means an amount of $15.00 per New Instrument.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | In-the-Money means that, as of any particular trading day, the Class A
Restricted Voting Shares and Class B Non-Voting Shares continue to be
listed and posted for trading on a Recognized Exchange and the Average
Common Share Price as of such                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         





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| |  | trading day is equal to or in excess of the then current FPS Redemption
Price or SPS Redemption Price, as the case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | ITA means the Income Tax Act(Canada) and the regulations enacted
thereunder, as amended from time to time.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Liquidation Event means a winding-up, liquidation or dissolution of the
Corporation or any other distribution of its assets for the purpose of
winding-up its affairs or otherwise.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | Mandatory Payments shall have the meaning ascribed thereto in Section
6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Maximum Aggregate
Holdings means an aggregate of 331/3% of the total
number of Voting Shares (or such other percentage of the total number of
Voting Shares that may be permitted to be held by or on behalf of persons


in the Constrained Class under the Canadian Ownership and Control
Provisions without resulting in a contravention of the Canadian Ownership
and Control Provisions applicable to any telecommunications common
carrier in which the Corporation has an ownership interest), which is the
total number of Voting Shares that may be held from time to time by or on
behalf of persons in the Constrained Class.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Net Proceeds means, (a) with respect to any Asset Disposition, the
gross amount received by the Reference Entities from such Asset
Disposition, including proceeds of any insurance policies received by the
Reference Entities in connection with such Asset Disposition and amounts
received by the Reference Entities pursuant to any expropriation
proceeding or condemnation proceeding in connection with such Asset
Disposition, minus the sum of (i) the amount, if any, of all Taxes paid
or payable by the Reference Entities directly resulting from such Asset
Disposition (including the amount, if any, estimated by the relevant
Reference Entity in good faith at the time of such Asset Disposition for
Taxes payable by the Reference Entities on or measured by net income or
gain resulting from such Asset Disposition, taking into account any Tax
losses or credits available or to be available to the Reference Entities
at the time such Taxes are payable that are not used to offset other
income or gains), and (ii) the reasonable out-of-pocket costs and
expenses incurred by the Reference Entities in connection with such Asset
Disposition (including reasonable brokerage commissions and customary
fees and expenses of counsel, investment bankers, accountants and other
advisors paid to a Person other than an affiliate of the Reference
Entities), and (b) with respect to any issuance of equity securities, the
gross amount received by the Reference Entities from such issuance of
equity securities, minus the reasonable out-of-pocket costs and expenses
incurred by the Reference Entities in connection with such issuance of
equity securities (including reasonable, legal, accounting, underwriting
and brokerage fees and expenses paid to a Person other than an affiliate
of the Reference Entities). For greater certainty, Net Proceeds in
respect of the issuance of Equity Securities by a Reference Entity to
another Reference Entity shall be nil.
|
| |  | New Instruments means the First Instruments and the Second Instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              





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| |  | Non-Canadian Secured Creditors means holders of First Preferred
Non-Voting Shares and Second Preferred Non-Voting Shares entitled
pursuant to the terms of the Plan to convert in the aggregate, each on a
pro ratabasis, either (i) up to 30,000 First Preferred Non-Voting Shares
into 30,000 First Preferred Voting Shares, (ii) 30,000 Second Preferred
Non-Voting Shares into 30,000 Second Preferred Voting Shares or (iii) a
combination of the above not exceeding 30,000 shares in the aggregate.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Non-Voting Shares means, collectively, the Class B Non-Voting Shares,
First Preferred Non-Voting Shares, First Preferred Non-Voting 2 Shares,
Second Preferred Non-Voting Shares and Second Preferred Non-Voting 2
Shares and Non-Voting Share means any one of such shares.                                                                                                                                                                                                                            
|
| |  | Permitted Additional Exit Facility Debt means secured indebtedness, in
an aggregate principal amount not exceeding an amount equal to
Cdn$75,000,000 less the principal amount of the Tranche A Exit Facility
on the Effective Date, incurred by Solutions at any time after such date,
by way of an increase in the commitments under the Tranche A Exit
Facility.                                                                                                                                       
|
| |  | Plan means the plan of reorganization and of compromise and arrangement
with respect to Microcell Telecommunications Inc. (to be designated
2861399 Canada Inc.) as of the Effective Date and certain of its
subsidiaries filed pursuant to the Companies Creditors Arrangement Act
and the Act.                                                                                                                                                                                                         
|
| |  | Radiocommunications Act the Radiocommunications Act(Canada) R.S.C., c.
R-2 and the regulations thereunder, as amended from time to time.                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | Recognized Exchange means the TSX or any prescribed Canadian stock
exchange within the meaning of the ITA.                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Reference Entities means the Corporation and its subsidiaries, other
than Unrestricted Subsidiaries.                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Regulations means the regulations under the Act as now enacted or as
the same may from time to time be amended, varied, replaced, restated,
re-enacted or supplemented.                                                                                                                                                                                                                                                                                                                                   
|
| |  | Required Amounts shall have the meaning ascribed thereto in Section 6.                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Residency Declaration means a declaration by a person attesting whether
such person is Canadian or non-Canadian, in the form approved by the
Corporation from time to time;                                                                                                                                                                                                                                                                                                                               
|
| |  | SEC means the United States Securities and Exchange Commission.                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Second Instruments means Second Preferred Voting Shares, Second Voting
Units, Second Preferred Non-Voting Shares and Second Non-Voting Units.                                                                                                                                                                                                                                                                                                                                                             
|
| |  | Second Non-Voting Unit means a Second Unit which includes a Second
Preferred Non-Voting 2 Share.                                                                                                                                                                                                                                                                                                                                                                                                          





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| |  | Second Notes means a new series of subordinated convertible 9% notes of
the Corporation in an amount equal to the aggregate SPS Redemption Price,
included in the Second Units issuable pursuant to a certain Second Unit
Indenture between the Corporation and Computershare Trust Company of
Canada as trustee to be dated the Effective Date.                                                                                                                                                                                                                                                                                                                                                                                             
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Second Preferred Non-Voting Shares has the meaning ascribed thereto in
Subsection 4.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Second Preferred Non-Voting 2 Shares has the meaning ascribed thereto
in Subsection 4.5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Second Preferred Voting Shares has the meaning ascribed thereto in
Subsection 4.2.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Second Preferred Voting 2 Shares has the meaning ascribed thereto in
Subsection 4.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Second Unit means a unit consisting of a Second Note together with one
Second Preferred Voting 2 Share or one Second Preferred Non-Voting 2
Share, as the case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | Second Voting Unit means a Second Unit which includes a Second
Preferred Voting 2 Share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Solutions means Microcell Solutions Inc., a corporation resulting from
the amalgamation pursuant to the Act of 4130880 Canada Inc., Microcell
Connexions Inc., Microcell Solutions Inc., Microcell Capital Inc.,
Microcell Labs Inc., Microcell i5 Inc. and Masq Inc. on the date of
implementation of the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | SPS Accretion Amount means, as at any particular date, the amount equal
to the product obtained by the multiplication of (X) 0.045 by (Y) the SPS
Redemption Price as of the end of the immediately preceding semi-annual
period (as calculated from time to time).                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | SPS Redemption Price means $15.00 per Second Preferred Voting Share or
per Second Preferred Non-Voting Share (as adjusted from time to time as
provided herein), as the case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | SPS2 Redemption Price means $0.0001 per Second Preferred Voting 2 Share
or per Second Preferred Non-Voting 2 Share, as the case may be.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Taxes means all taxes, charges, fees, levies, imposts and other
assessments, including all income, sales, use, goods and services, value
added, capital, capital gains, alternative, net worth, transfer, profits,
withholding, payroll, employer health, excise, real property and personal
property taxes, and any other taxes, customs duties, fees, assessments,
or similar charges in the nature of a tax, including Canada Pension Plan
and provincial pension plan contributions, unemployment insurance
payments and workers compensation premiums, together with any
instalments with respect thereto, and any interest, fines and penalties
with respect thereto, imposed by any governmental authority (including
federal, state,





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##### 



- 14 -



| |  | provincial, municipal and foreign governmental authorities), and whether
disputed or not.                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | Telecommunications Act means the Telecommunications Act(Canada) S.C.
1993, c. 38 and the regulations thereunder, as amended from time to time.                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | Tranche A Exit Facility means the secured revolving credit facility in
the aggregate principal amount of at least $25,000,000 and not more than
$75,000,000 established in favour of Solutions pursuant to a certain
credit agreement to be dated the Effective Date between inter alia,
Solutions and JP Morgan Chase Bank as Agent, as amended, restated or
supplemented from time to time, and includes any hedging arrangements
entered into by Solutions in accordance with the provisions of such
credit agreement.
|
| |  | Tranche B Debt means the certain term loan to be made to consisting of
a Canadian dollar series and a U.S. dollar series pursuant to a certain
credit agreement to be dated the Effective Date between, inter alia,
Solutions and JP Morgan Chase Bank as Agent, as amended, restated or
supplemented from time to time.                                                                                                                                                                                                 
|
| |  | Tranche C Debt means the secured non-revolving term loans in the
aggregate principal amount of no more than $50,000,000 to be issued by
Solutions pursuant to a certain Credit Agreement to be dated the
Effective Date between, inter alia, Solutions and JP Morgan Chase Bank as
Agent, as amended, restated or supplemented from time to time.                                                                                                                                                                        
|
| |  | Transfer Agent means the transfer agent from time to time for such type
or class of securities of the Corporation as the context may require.                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Transaction Shares means shares of any class or series in the capital
of the Corporation being redeemed, exchanged or converted, as the case
may be, pursuant to any of the provisions hereof.                                                                                                                                                                                                                                                                                                                           
|
| |  | TSX means the Toronto Stock Exchange, a division of TSX Inc. through
which the senior listing operations of TSX Group Inc. are conducted.                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | Unrestricted Subsidiaries means Inukshuk Internet Inc. and Telcom
Investments Inc. (but only for so long as the sole activity of Telcom
Investments Inc. is serving as general partner of GSM Capital Partners)
and any other subsidiary of the Corporation identified as such from time
to time in the financial reports of the Corporation.                                                                                                                                                                            
|
| |  | Voting Shares means, collectively, the Class A Restricted Voting
Shares, First Preferred Voting Shares, First Preferred Voting 2 Shares,
Second Preferred Voting Shares and Second Preferred Voting 2 Shares and
Voting Share means any one of such shares.                                                                                                                                                                                                                                                            
|
| |  | Warrants means, collectively, the 2005 warrants and 2008 warrants
issued by the Corporation pursuant to certain warrant indentures between
the Corporation and Computershare Trust Company of Canada, as trustee,
each to be dated as of the Effective Date.                                                                                                                                                                                                                                                             





---



##### 



- 15 -



| |  | B)     Notices                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | On or after the date specified for a redemption, conversion or exchange
in any Corporation Transaction Notice, the Corporation shall give effect
to the proposed redemption, conversion or exchange, as the case may be,
upon presentation and surrender of the certificates for the Transaction
Shares so affected at the registered office of the Corporation or at such
other place or places as may be specified in such notice, and such
certificates shall thereupon be cancelled, and the Transaction Shares
represented thereby shall thereupon be redeemed, converted or exchanged,
as the case may be. From and after the date specified in such notice,
the holders of the Transaction Shares called for redemption, exchange or
conversion, as the case may be, shall not be entitled to exercise any of
the rights of the holders thereof, except the right to receive the
consideration for such redemption, exchange or conversion, as the case
may be, unless the Corporation shall not proceed with such transaction,
in which case the rights of the holders of such Transaction Shares shall
remain unaffected. On or before the date specified in such notice, the
Corporation shall have the right to deposit such consideration with any
trust company in Canada named in the notice, to be remitted to or to the
order of the respective holders of such Transaction Shares upon
presentation and surrender of the certificates representing the same and,
upon such deposit being made or upon the date specified for redemption,
conversion or exchange, as the case may be, whichever is later, the
Transaction Shares in respect whereof such deposit shall have been made,
shall be deemed to be redeemed, exchanged or converted, as the case may
be, and the rights of the respective holders thereof, after such deposit
or after such date, as the case may be, shall be limited to receiving the
consideration to which they are entitled in respect of their respective
Transaction Shares against presentation and surrender of the certificates
representing such Transaction Shares.





---



##### 



- 16 -



|   |  | The classes and maximum number of shares that the Corporation is
authorized to issue are:                                                                                                                                  
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | An unlimited number of Class A Restricted Voting Shares;                                                                                                                                                                   
|  
|   |  | An unlimited number of Class B Non-Voting Shares;                                                                                                                                                                          
|  
|   |  | An unlimited number of First Preferred Shares, issuable in series as
First Preferred Voting Shares, First Preferred Non-Voting Shares, First
Preferred Voting 2 Shares and First Preferred Non-Voting 2 Shares; and        
|  
|   |  | An unlimited number of Second Preferred Shares, issuable in series as
Second Preferred Voting Shares, Second Preferred Non-Voting Shares,
Second Preferred Voting Series 2 Shares and Second Preferred Non-Voting 2
Shares.
|  
|1. |  | CLASS A RESTRICTED VOTING SHARES                                                                                                                                                                                           
|  
|   |  | Subject to the Articles, the Class A Restricted Voting Shares shall have
attached thereto the rights, privileges, restrictions and conditions set
forth in this Section 1.                                                 



| | 1.1. |  | Voting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |      |  | Subject to the restrictions contained in Section 5 and subject to the Articles, each Class A
Restricted Voting Share entitles the holder to receive notice of,
to attend and to exercise (in person or by proxy) one vote at any
meeting of shareholders of the Corporation (except meetings at
which only holders of another specified class or series of shares
are entitled to vote pursuant to the provisions hereof or pursuant
to the Act).                                                                                                                                                                  
|
| | 1.2. |  | Dividends.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |      |  | Subject to Section 6, the Board
may declare and cause to be paid dividends to the holders of the
Class A Restricted Voting Shares from any assets at the time
properly applicable to the payment of dividends, pari passuwith
the holders of the Class B Non-Voting Shares, on a per share basis.
For purposes of the foregoing, the payment of dividends by way of
a stock dividend in Class A Restricted Voting Shares on Class A
Restricted Voting Shares and in Class B Non-Voting Shares on Class
B Non-Voting Shares in the same number per share shall be
considered to be a pari passupayment of dividends.
|
| | 1.3. |  | Liquidation Event.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| |      |  | Subject always to the prior rights of the holders of the First
Preferred Shares and the Second Preferred Shares, the holders of
the Class A Restricted Voting Shares shall be entitled to receive
the remaining assets of the Corporation upon any Liquidation Event,
pari passuwith the holders of the Class B Non-Voting Shares, on a
per share basis.                                                                                                                                                                                                                                                           





---



##### 



- 17 -



| | 1.4 |  | Exchange.
| | --- |  | ---------

| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | ----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1.4.1 |  | Each Class A Restricted Share may be exchanged
into one Class B Non-Voting Share, at any time and from time
to time, upon delivery by the holder of such Class A
Restricted Share of a duly completed and executed Holder
Transaction Notice. If applicable, upon receipt by the
transfer agent of such notice, the Corporation shall issue or
cause to be issued a share certificate representing fully paid
Class B Non-Voting Shares.                                                                                                                                                                                                                                                                                                                                    
| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 1.4.2 |  | The Corporation shall not subdivide its Class A
Restricted Voting Shares into a greater number of shares or
issue in exchange for such Class A Restricted Voting Shares a
greater number of Class A Restricted Voting Shares without,
concurrently therewith, effecting a subdivision or exchange of
the Class B Non-Voting Shares in the same proportion; and the
Corporation shall not reduce the number of Class A Restricted
Voting Shares by combination or consolidation of shares or
issue in exchange for its outstanding Class A Restricted
Voting Shares a smaller number of Class A Restricted Voting
Shares without effecting concurrently therewith a combination,
consolidation or exchange of shares of the Class B Non-Voting
Shares in the same proportion.



|2. |  | CLASS B NON-VOTING SHARES                                                                                                                                          
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | Subject to the Articles, the Class B Non-Voting Shares shall have
attached thereto the rights, privileges, conditions and restrictions set
forth in this Section 2.



| | 2.1. |  | Voting.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |      |  | The holders of the Class B Non-Voting Shares shall be entitled to
receive notice of and to attend any meeting of shareholders at
which the holders of Class A Restricted Voting Shares are entitled
to vote. Notwithstanding the foregoing, the Class B Non-Voting
Shares shall not entitle the holders thereof to any voting rights
either to vote at any meeting of the shareholders of the
Corporation or to sign a resolution in writing, except as otherwise
expressly provided in these Articles or in the Act and subject to
the restrictions contained in Section 5.                                       
|
| | 2.2. |  | Dividends.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |      |  | Subject to Section 6, the Board may declare and cause to be paid
dividends to the holders of the Class B Non-Voting Shares from any
assets at the time properly applicable to the payment of dividends,
pari passuwith the holders of the Class A Restricted Voting
Shares, on a per share basis. For purposes of the foregoing, the
payment of dividends by way of a stock dividend in Class A
Restricted Voting Shares on Class A Restricted Voting Shares and in
Class B Non-Voting Shares on Class B Non-Voting Shares in the same
number per share shall be considered to be a pari passupayment of
dividends.





---



##### 



- 18 -



| | 2.3. |  | Liquidation Event.                                                                                                                                                                                                                                                                                                                                      
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |      |  | Subject always to the prior rights of the holders of the First
Preferred Shares and the Second Preferred Shares, the holders of
the Class B Non-Voting Shares shall be entitled to receive the
remaining assets of the Corporation upon any Liquidation Event,
pari passuwith the holders of the Class A Restricted Voting
Shares, on a per share basis.
|
| | 2.4. |  | Exchange.                                                                                                                                                                                                                                                                                                                                               

| |       |  |                                                                                                                                                                
| | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.4.1 |  | Each Class B Non-Voting Share may be or will be,
as the case may be, exchanged for one Class A Restricted
Voting Share, subject to the provisions of Section 7:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | at the option of the holder
exercisable at any time and from time to time by giving
a Holder Transaction Notice accompanied by a Residency
Declaration whereby such holder attests that it is
Canadian. Upon receipt by the transfer agent of such
notice and, if applicable, Residency Declaration, the
Corporation shall issue or cause to be issued a share
certificate representing fully paid Class A Restricted
Voting Shares;           
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | (b) |  | automatically, if and to the extent
that the Canadian Ownership and Control Provisions are
amended or repealed such that persons in the Constrained
Class are permitted to hold Class A Restricted Voting
Shares without resulting in a contravention of the
Canadian Ownership and Control Provisions provided,
however, that no exchange shall occur until at least 1%
of the then outstanding Class B Non-Voting Shares can be
exchanged; or
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | (c) |  | in the circumstances described in
paragraph 2.5 hereof, but only in the manner set out
therein.                                                                                                                                                                                                                                                                                                                                                

| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | ----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.4.2 |  | The Corporation shall not subdivide the Class B
Non-Voting Shares into a greater number of shares or issue in
exchange for the Class B Non-Voting Shares a greater number of
Class B Non-Voting Shares without, concurrently therewith,
effecting a subdivision or exchange of the Class A Restricted
Voting Shares in the same proportion; and the Corporation
shall not reduce the number of Class B Non-Voting Shares by
combination or consolidation of shares or issue in exchange
for its outstanding Class B Non-Voting Shares a smaller number
of Class B Non-Voting Shares without effecting concurrently
therewith a combination, consolidation or exchange of shares
of the Class A Restricted Voting Shares in the same
proportion.





---



##### 



- 19 -



| | 2.5. |  | Coattails.
| | ---- |  | ----------

| |       |  |                                                                                                 
| | ----- |  | ------------------------------------------------------------------------------------------------
| | 2.5.1 |  | In paragraphs 2.5.2 through 2.5.8 hereof, the
following terms shall have the following meanings:

| |  |                                                                                                                                                                                               
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Conversion Period means the period of time commencing on
the eighth day after the Offer Date and terminating on the
Expiry Date;                                                            
| |  |                                                                                                                                                                                               
| |  | Converted Shares means Class A Restricted Voting Shares
resulting from the conversion of Class B Non-Voting Shares
into Class A Restricted Voting Shares pursuant to paragraph
2.5.2 hereof;
| |  |                                                                                                                                                                                               
| |  | Exclusionary Offer means an offer to purchase Class A
Restricted Voting Shares that:                                                                                                        

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | must, by reason of applicable
securities legislation or the requirements of the TSX or
the requirements of the Act, be made to all or
substantially all holders of Class A Restricted Voting
Shares who are in a province of Canada to which the
requirements apply; and                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | (b) |  | is not made concurrently with an
offer to purchase Class B Non-Voting Shares that is
identical to the offer to purchase Class A Restricted
Voting Shares in terms of price per share and percentage
of outstanding shares to be taken up exclusive of shares
owned immediately prior to the offer by the Offeror, and
in all other material respects (except with respect to
the conditions that may be attached to the offer for
Class A Restricted Voting Shares), and that has no
condition attached thereto other than the right not to
take up and pay for Class B Non-Voting Shares tendered
if no Class A Restricted Voting Shares are purchased
pursuant to the offer for Class A Restricted Voting
Shares;

| |  |                                                                                                                                                                                                                                                                                                                                                                                      
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | for the purposes of this definition, if an offer to purchase
Class A Restricted Voting Shares would be an Exclusionary
Offer but for the provisions of clause (b), the varying of
any term of such offer shall be deemed to constitute the
making of a new offer unless an identical variation
concurrently is made to the corresponding offer to purchase
Class B Non-Voting Shares;
| |  |                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Expiry Date means the last date upon which holders of Class
A Restricted Voting Shares may accept an Exclusionary Offer;                                                                                                                                                                                                                                                           
| |  |                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Offer Date means the date on which an Exclusionary Offer is
made;                                                                                                                                                                                                                                                                                                                  
| |  |                                                                                                                                                                                                                                                                                                                                                                                      
| |  | Offeror means a person or company that makes an offer to
purchase Class A Restricted Voting Shares (the bidder), and
includes any associate or affiliate of the bidder or any
person or company that is acting                                                                                                                                                                   





---



##### 



- 20 -

| |  |                                                                                                                      
| |  | ---------------------------------------------------------------------------------------------------------------------
| |  | jointly or in concert with the bidder (whether or not
disclosed in the offering document relating to such offer);
and

| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.5.2 |  | Subject to paragraph 2.5.5 hereof, if an
Exclusionary Offer is made, each outstanding Class B
Non-Voting Share shall be convertible into one fully paid
Class A Restricted Voting Share at the option of the holder
thereof exercisable by giving a Holder Transaction Notice at
any time during the Conversion Period accompanied by: (a) the
share certificate or certificates representing the Class B
Non-Voting Shares which the holder desires to convert; and (b)
the letters of transmittal, directions, transfers, powers of
attorney and other documentation duly executed by the holder
or by his or her attorney duly authorized in writing as is
specified by the Transfer Agent for the Class A Restricted
Voting Shares, acting reasonably, as being required to give
full effect to the reconversion into Class B Non-Voting Shares
of the Converted Shares as contemplated by paragraphs 2.5.3
and 2.5.4. Upon receipt by the Transfer Agent of such notice
and share certificate or certificates, the Corporation shall
issue or cause to be issued a share certificate representing
fully-paid Class A Restricted Voting Shares as prescribed
above and in accordance with paragraph 2.5.4. If less than
all of the Class B Non-Voting Shares represented by any share
certificate are to be converted, the holder shall be entitled
to receive a new share certificate representing in the
aggregate the number of Class B Non-Voting Shares represented
by the original share certificate which are not to be
converted.
| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |       |  | Notwithstanding the conversion rights provided for under this
paragraph 2.5.2, no holder of Class B Non-Voting Shares shall
be entitled to exercise such conversion right if the Offeror
under any Exclusionary Offer is acting in concert with such
holder, is an associate or an affiliate of such holder or if
under any applicable securities laws the shares of such
holder and the Offeror are deemed to be held by the same
person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | 2.5.3 |  | An election by a holder of Class B Non-Voting
Shares to exercise the conversion right provided for in
paragraph 2.5.2 shall be deemed to also constitute irrevocable
elections by such holder (i) to deposit the Converted Shares
in acceptance of the Exclusionary Offer (subject to such
holders rights to subsequently withdraw the shares from the
offer in accordance with the terms thereof and applicable
law); and (ii) to exercise the right to convert into Class B
Non-Voting Shares all Converted Shares in respect of which
such holder exercises his or her right of withdrawal from the
Exclusionary Offer or which are not otherwise ultimately taken
up and paid for under the Exclusionary Offer. Any conversion
of Converted Shares into Class B Non-Voting Shares pursuant to
such deemed election in respect of which the holder exercises
his or her right of withdrawal from the Exclusionary Offer
shall become effective at the time such right of withdrawal is
exercised. If the right of withdrawal is                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          





---



##### 



- 21 -

| |  |  |                                                                                                                                 
| |  |  | --------------------------------------------------------------------------------------------------------------------------------
| |  |  | not exercised, any conversion into Class B Non-Voting Shares
pursuant to such deemed election shall become effective as
follows:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                    
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | in respect of an Exclusionary Offer
which is completed, any shares which are not otherwise
ultimately taken up and paid for under the Exclusionary
Offer, immediately following the time by which the
Offeror is required under applicable securities
legislation to take up and pay for all shares to be
acquired by the Offeror under the Exclusionary Offer;
and
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                    
| |  | (b) |  | in respect of an Exclusionary Offer
which is abandoned or withdrawn, at the time at which
the Exclusionary Offer is abandoned or withdrawn.                                                                                                                                                                                                                        

| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.5.4 |  | No share certificates representing Converted
Shares shall be delivered to or to the order of the holders of
such shares before such shares are deposited pursuant to the
Exclusionary Offer; the Transfer Agent, on behalf of the
holders of the Converted Shares, shall deposit pursuant to the
Exclusionary Offer a certificate or certificates representing
the Converted Shares. Upon completion of the Exclusionary
Offer, the Transfer Agent shall deliver or cause to be
delivered to the holders entitled thereto all consideration
paid by the Offeror pursuant to the Exclusionary Offer in
respect of the Converted Shares. If Converted Shares are
converted into Class B Non-Voting Shares in accordance with
the deemed election in paragraph 2.5.3, the Transfer Agent
shall deliver to the holders entitled thereto a share
certificate representing the Class B Non-Voting Shares
resulting from the conversion. The Corporation shall make all
arrangements with the Transfer Agent necessary or desirable to
give effect to this paragraph 2.5.4.
| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | 2.5.5 |  | Subject to paragraph 2.5.6 hereof, the
conversion right provided for in paragraph 2.5.2 hereof shall
not come into effect if:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) |  | prior to the time at which the
Exclusionary Offer is made there is delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate, as at the time the Exclusionary Offer is
made, more than 50% of the then outstanding Class A
Restricted Voting Shares, exclusive of shares owned
immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder, that such
shareholder shall not:

| |     |  |                                                                                                                                                                                                                                        
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) |  | tender any shares in
acceptance of the Exclusionary Offer without
giving the Transfer Agent and the Secretary of the
Corporation written notice of such acceptance or
intended acceptance at least seven days prior to
the Expiry Date;





---



##### 



- 22 -

| |  |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (ii)  |  | make any Exclusionary
Offer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (iii) |  | act jointly or in
concert with any person or company that makes any
Exclusionary Offer; or                                                                                                                                                                                                                                                                                                                                                                                                                
| |  |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (iv)  |  | transfer any Class A
Restricted Voting Shares, directly or indirectly,
during the time at which any Exclusionary Offer is
outstanding without giving the Transfer Agent and
the Secretary of the Corporation written notice of
such transfer or intended transfer at least seven
days prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of Class A
Restricted Voting Shares transferred or to be
transferred to each transferee;

| |    | 
| | -- | 
| | or | 

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) |  | as of the end of the seventh day
after the Offer Date, there has been delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate more than 50% of the then outstanding
Class A Restricted Voting Shares, exclusive of shares
owned immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder:

| |  |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | ----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i)   |  | the number of Class A
Restricted Voting Shares owned by the shareholder;                                                                                                                                                                                                                                                                                                                                              
| |  |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | (ii)  |  | that such shareholder is
not making the Exclusionary Offer and is not an
associate or affiliate of, or acting jointly or in
concert with, the person or company making the
offer;                                                                                                                                                                                                                                     
| |  |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | (iii) |  | that such shareholder
shall not tender any shares in acceptance of the
offer, including any varied form of the offer,
without giving the Transfer Agent and the
Secretary of the Corporation written notice of
such acceptance or intended acceptance at least
seven days prior to the Expiry Date; and                                                                                                               
| |  |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | (iv)  |  | that such shareholder
shall not transfer any Class A Restricted Voting
Shares, directly or indirectly, prior to the
Expiry Date without giving the Transfer Agent and
the Secretary of the Corporation written notice of
such transfer or intended transfer at least seven
days prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of Class A





---



##### 



- 23 -

| |  |                                                                              
| |  | -----------------------------------------------------------------------------
| |  | Restricted Voting Shares transferred or to be
transferred to each transferee;

| |   
| | --
| | or

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) |  | as of the end of the seventh day
after the Offer Date a combination of certificates that
comply with either clause (a) or (b) from shareholders
of the Corporation owning in the aggregate more than 50%
of the then outstanding Class A Restricted Voting
Shares, exclusive of shares owned immediately prior to
the Offer Date by the Offeror, has been delivered to the
Transfer Agent and to the Secretary of the Corporation.

| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.5.6 |  | If a notice referred to in sub-clause
2.5.5(a)(i), 2.5.5(a)(iv), 2.5.5(b)(iii) or 2.5.5(b)(iv)
hereof is given and the conversion right provided for in
paragraph 2.5.2 hereof has not come into effect, the Transfer
Agent shall either forthwith upon receipt of the notice or
forthwith after the seventh day following the Offer Date,
whichever is later, determine the number of Class A Restricted
Voting Shares in respect of which there are subsisting
certificates that comply with either clause 2.5.5(a) or
2.5.5(b) hereof. For the purpose of this determination,
certificates in respect of which such a notice has been filed
shall not be regarded as subsisting insofar as the Class A
Restricted Voting Shares to which the notice relates are
concerned; the transfer that is the subject of any notice
referred to in sub-clause 2.5.5(a)(iv) or 2.5.5(b)(iv) hereof
shall be deemed to have already taken place at the time of the
determination; and the transferee in the case of any notice
referred to in sub-clause 2.5.5(a)(iv) or 2.5.5(b)(iv) hereof
shall be deemed to be a person or company from whom the
Transfer Agent does not have a subsisting certificate unless
the Transfer Agent is advised of the identity of the
transferee, either by such notice or by the transferee in
writing, and such transferee is a person or company from whom
the Transfer Agent has a subsisting certificate. If the
number of Class A Restricted Voting Shares so determined does
not exceed 50% of the number of then outstanding Class A
Restricted Voting Shares, exclusive of shares owned
immediately prior to the offer by the Offeror, paragraph 2.5.5
hereof shall cease to apply and the conversion right provided
for in paragraph 2.5.2 hereof shall be in effect for the
remainder of the Conversion Period.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | As soon as reasonably possible after the seventh day after
the Offer Date, the Corporation shall send to each holder of
Class B Non-Voting Shares a notice advising the holders as to
whether they are entitled to convert their Class B Non-Voting
Shares into Class A Restricted Voting Shares and the reasons
therefor. If such notice discloses that they are not so
entitled but it is subsequently determined that they are so
entitled by virtue of paragraph 2.5.6 or otherwise, the
Corporation shall forthwith send another notice to them
advising them of that fact and the reasons





---



##### 



- 24 -

| |  |                                                                                                                                  
| |  | ---------------------------------------------------------------------------------------------------------------------------------
| |  | therefor. Failure to send such notice will not adversely
affect the rights of the holders of Class B Non-Voting Shares
hereunder.

| |  |                                                                                                                       
| |  | ----------------------------------------------------------------------------------------------------------------------
| |  | If a notice referred to in paragraph 2.5.6 discloses that the
conversion right has come into effect, the notice shall:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | include a description of the
procedure to be followed to effect the conversion and to
have the Converted Shares tendered under the offer;                                                                                                                                                                                                                                                                                                                  
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (b) |  | include the information set out in
paragraph 2.5.3 hereof; and                                                                                                                                                                                                                                                                                                                                                                                             
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | (c) |  | be accompanied by a copy of the
Exclusionary Offer and all other material sent to
holders of Class A Restricted Voting Shares in respect
of such offer, and as soon as reasonably possible after
any additional material, including any notice of
variation, is sent to the holders of Class A Restricted
Voting Shares in respect of the offer, the Corporation
shall send a copy of such additional material to each
holder of Class B Non-Voting Shares.

| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 2.5.7 |  | Forthwith after sending any notice referred to
in paragraph 2.5.6, the Corporation shall cause a press
release to be issued to a Canadian national news-wire service,
describing the contents of the notice.                                                                                                                                                                                                                     
| |       |  |                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | 2.5.8 |  | Notwithstanding the provisions of the Act, in
the event that any Converted Shares are reconverted into Class
B Non-Voting Shares pursuant to the provisions of paragraph
2.5.3 above, the stated capital account in respect of such
Class B Non-Voting Shares shall be increased by the amount by
which the stated capital account maintained for such shares
was reduced by the conversion of such shares into Converted
Shares.



|3. |  | FIRST PREFERRED SHARES                                                                                                                                                                                                                                                                                                                                                                                                                                 
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | Subject to the Articles, the First Preferred Shares shall have attached
thereto the rights, privileges, restrictions and conditions set forth in
this Section 3.                                                                                                                                                                                                                                                                                       
|  
|   |  | The First Preferred Shares shall be issued in the following series, each
series to consist of an unlimited number of shares: First Preferred
Voting Shares, First Preferred Voting 2 Shares, First Preferred
Non-Voting Shares and First Preferred Non-Voting 2 Shares. The First
Preferred Shares of all series shall rank on parity with each other with
respect to the payment of dividends and the distribution of assets upon a
Liquidation Event.
|  
|   |  | If the First Preferred Shares are determined to be taxable preferred
shares other than short term preferred shares (as such terms are
respectively defined in the ITA), the Corporation will make an election
under Subsection 191.2(1) of the ITA to increase its tax liability under
Part VI.1 of the ITA to 40% or such other rate required so that no holder
of                                                                                





---



##### 



- 25 -



| |  | such shares would be required to pay tax under Part IV.1 of the ITA on
dividends on such shares.
| |  | ------------------------------------------------------------------------------------------------



| | 3.1. |  | Anti-Layering
| | ---- |  | -------------



| |  | Provided there remain outstanding First Instruments of any type or class
representing in the aggregate an Initial Issue Price in excess of
$75,000,000, the approval: (i) by written resolution signed by holders of
First Instruments representing a majority of the First Instruments then
outstanding (measured by reference to their redemption price or face
amount, as applicable) or (ii) by a majority of votes cast by the holders
of First Instruments represented in person or by proxy at a meeting
called for such purpose will be required before the Corporation and its
subsidiaries either (X) issue any shares ranking prior to or pari passu
with the First Preferred Shares other than any series of First Preferred
Shares forming part of First Units issued upon redemption of First
Preferred Shares, or (Y) incur Funded Debt (other than as permitted under
the Credit Facilities, First Units or Second Units), as a result of which
the aggregate consolidated Funded Debt of the Corporation (other than
Funded Debt of Unrestricted Subsidiaries) would be in excess of 4.0 times
consolidated annual EBITDA (other than EBITDA of Unrestricted
Subsidiaries), calculated on a pro formabasis based upon the
consolidated EBITDA (other than EBITDA of Unrestricted Subsidiaries) for
the four (4) consecutive quarters ended as at the fiscal quarter-end
immediately prior to the date of the resolution of the Board approving
such incurrence.
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | 3.2. |  | First Preferred Voting Shares
| | ---- |  | -----------------------------

| |       |  |        
| | ----- |  | -------
| | 3.2.1 |  | Voting.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Subject to the restrictions contained in Section 5: (a) each First Preferred Voting Share entitles
the holder to receive notice of, to attend and to exercise one vote
(in person or by proxy) at any meeting of holders of First
Preferred Shares as a class or at any meeting of holders of First
Preferred Voting Shares as a series; and (b) each holder of First
Preferred Voting Shares is entitled to vote together with the
holders of the Class A Restricted Voting Shares on an as
converted basis, on any matter on which holders of the Class A
Restricted Voting Shares are entitled to vote.

| |       |  |           
| | ----- |  | ----------
| | 3.2.2 |  | Dividends.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The holders of the First Preferred Voting Shares shall be entitled
to fixed, non-cumulative, preferred dividends at the rate of 9% per
annum calculated on the FPS Redemption Price, payable, if declared
and subject to Section 6, in cash
semi-annually, in arrears, on the 1st day of June and December of
each year, commencing on June 1, 2003. All dividends declared on
the First Preferred Voting Shares and on the First Preferred
Non-Voting Shares shall be declared and paid at the same time, and
in equal amounts, share for share, without any preference or
priority of one series over another but in priority to the payment
of any dividend on the Class A Restricted Voting Shares, Class B
Non-Voting Shares or any series of Second Preferred Shares.





---



##### 



- 26 -

| |       |  |                   
| | ----- |  | ------------------
| | 3.2.3 |  | Liquidation Event.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Upon any Liquidation Event, the holders of the First Preferred
Voting Shares shall be entitled to receive pari passuwith the
holders of the First Preferred Non-Voting Shares, the First
Preferred Voting 2 Shares and First Preferred Non-Voting 2 Shares
and in priority to any payment or distribution in respect of shares
of any other class, an amount per share equal to the FPS Redemption
Price plus any declared but unpaid dividends. In the event of an
insufficiency of assets to pay in full the amounts to which the
holders of First Preferred Voting Shares are entitled upon a
Liquidation Event, the holders of First Preferred Voting Shares,
First Preferred Non-Voting Shares, First Preferred Voting 2 Shares
and First Preferred Non-Voting 2 Shares shall, on a per share
basis, participate rateably in any distribution to holders of First
Preferred Shares, in accordance with the amounts to which they are
respectively entitled upon such Liquidation Event.

| |       |  |            
| | ----- |  | -----------
| | 3.2.4 |  | Conversion.

| |  |                                                                              
| |  | -----------------------------------------------------------------------------
| |  | The First Preferred Voting Shares shall have the following
conversion rights:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | each First Preferred Voting Share will be
convertible into one Class A Restricted Voting Share at the
option of the holder at any time and from time to time,
subject always to the provisions of Section 7, upon delivery of a duly completed and
executed Holder Transaction Notice. If applicable, upon
receipt by the Transfer Agent of such notice, the Corporation
shall issue or cause to be issued a share certificate
representing fully-paid Class A Restricted Voting Shares;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | (b) |  | if at any time prior to the fifth anniversary of
the Effective Date, the Corporation shall complete an offering
of Class A Restricted Voting Shares and/or Class B Non-Voting
Shares for gross proceeds of not less than $150,000,000 and at
a per share price equal to or greater than 200% of the then
current FPS Redemption Price and the proceeds thereof are used
as described in Section 6
hereof, then the First Preferred Voting Shares which remain
outstanding after the application of such proceeds may be
converted, at the option of the Corporation, at any time
thereafter, into Class A Restricted Voting Shares, on a
share-for-share basis, by way of a Corporation Transaction
Notice to such effect; the Corporation Transaction Notice may
be given at any time after the completion of the offering of
the Class A Restricted Voting Shares and/or Class B Non-Voting
Shares provided that the Corporation has applied the proceeds
thereof as described in Section 6 or has set aside the monies for application as therein
provided for;
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | (c) |  | at any time on or after the fifth anniversary of
the Effective Date, each First Preferred Voting Share will
automatically be converted into one Class A Restricted Voting
Share if, on the 25th day (or if such day is not a trading
day, then on the next following trading day) after the date of
the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           





---



##### 



- 27 -

| |  |     |  |                                                                                                                                                                                                                              
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |     |  | press release of the Corporation announcing its quarterly or
annual financial results, as the case may be, the First
Preferred Voting Shares are In-the-Money, by way of a
Corporation Transaction Notice to such effect; and
| |  |     |  |                                                                                                                                                                                                                              
| |  | (d) |  | under the circumstances described in subparagraph
3.2.6(b)(ii).                                                                                                                                                              

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A holder of First Preferred Voting Shares shall not be entitled to
any payment on account of the FPS Redemption Price upon exercise of
any conversion right by such holder or by the Corporation pursuant
to this paragraph 3.2.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | All conversion rights provided for in this paragraph 3.2.4 are
subject to a registration statement having been filed by the
Corporation and having been declared effective by the SEC under the
1933 Act or to an exemption being available under the 1933 Act in
connection with the issuance of shares resulting form the exercise
of such conversion right. If such exemption is not available as of
November 1, 2003, the Corporation will file, on a date not earlier
than November 1, 2003 and not later than December 1, 2003, such a
registration statement with the SEC and will use reasonable
commercial efforts to have the SEC declare such registration
statement effective.

| |       |  |          
| | ----- |  | ---------
| | 3.2.5 |  | Exchange.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Each First Preferred Voting Share may be exchanged for one First
Preferred Non-Voting Share, at the option of the holder, at any
time upon the provision by such holder of a duly completed and
executed Holder Transaction Notice. Upon receipt by the Transfer
Agent of any such notice, the Corporation shall issue or cause to
be issued a share certificate representing fully paid First
Preferred Non-Voting Shares.

| |       |  |            
| | ----- |  | -----------
| | 3.2.6 |  | Redemption.

| |  |                                                                                                                   
| |  | ------------------------------------------------------------------------------------------------------------------
| |  | The First Preferred Voting Shares may be, or will be, as the case
may be, redeemed in the following circumstances:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | at any time, in whole or in part, at the option
of the Corporation, at a price per share equal to the then
current FPS Redemption Price, in cash, provided however that
holders thereof may exercise any conversion rights pursuant to
Section 3.2.4(a) prior to any such redemption;                                                                                                                                                                                                                                                                                           
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | (b) |  | on the tenth anniversary of the Effective Date
(i) the Corporation will redeem all of the First Preferred
Voting Shares at a price per share equal to the then current
FPS Redemption Price, payable in cash or (ii) at the
Corporations option, if the Class A Restricted Voting Shares
and the Class B Non-Voting Shares are then listed and posted
for trading on a Recognized Exchange, the First Preferred
Voting Shares may be redeemed in consideration of the issuance
of such number of Class A Restricted Voting Shares as is equal
to the quotient obtained when the





---



##### 



- 28 -

| |  |                                                                                                                                                                                      
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | FPS Redemption Price as at the tenth anniversary of the
Effective Date is divided by the Average Common Share Price
as of the day before the tenth anniversary of the Effective
Date;

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (c) |  | the Corporation will redeem the First Preferred
Voting Shares prior to the tenth anniversary of the Effective
Date at the then current FPS Redemption Price to the extent
that the Corporation has remaining Excess Cash Flow, proceeds
from Asset Dispositions and proceeds from equity offerings
available for such purpose as provided in Section 6 hereof;                                                                                                                                                                                                                                                                            
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | (d) |  | the First Preferred Voting Shares are redeemable
at any time prior to the tenth anniversary of the Effective
Date, in whole, at the option of the Corporation, upon
satisfaction of the FPS Redemption Price as at the redemption
date by issuing First Voting Units listed on a Recognized
Exchange comprising First Notes having, in the aggregate,
principal amounts equal to the then current FPS Redemption

Price, provided that, concurrently with such redemption, First
Preferred Non-Voting Shares are redeemed pursuant to 3.4.6(d)
and Second Preferred Shares are redeemed pursuant to Section
4.2.6(d) and Section 4.4.6(d).

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Any redemption of First Preferred Voting Shares pursuant to this Section
3.2.6 shall be effected by way of a Corporation Transaction Notice to
such effect sent by the Corporation to each holder of First Preferred
Voting Shares to be redeemed, provided that in the case of a redemption
under paragraph (a) above, the Corporation Transaction Notice shall be
sent at least fifteen (15) Business Days before the date specified for
redemption of First Preferred Voting Shares, during which period the
holders thereof may, if they so elect, exercise the conversion rights
attached to such First Preferred Voting Shares pursuant to Section
3.2.4(a) by way of a Holder Transaction Notice to such effect.
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | So long as any First Preferred Voting Shares remain outstanding, on
November 1st and May 1st of every year, starting on November 1st, 2003,
the FPS Redemption Price shall be increased by an amount equal to the FPS
Accretion Amount and reduced by the amount of any cash dividend that has
been declared and paid in respect of such semi-annual period.                                                                                                                                                                                                                                                                                                                                                           
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | In the event of any redemption or mandatory conversion of First Preferred
Voting Shares other than as at the end of a semi-annual period, the FPS
Redemption Price of the First Preferred Voting Shares to be redeemed or
converted shall be increased by an amount equal to the FPS Accretion
Amount, adjusted on a pro rata basis with reference to the number of days
from the beginning of the then current semi-annual period to the date of
such redemption or conversion and reduced by the amount of any cash
dividend that has been declared and paid on such shares in respect of
such period.                                                                                                               





---



##### 



- 29 -



| | 3.3. |  | First Preferred Voting 2 Shares
| | ---- |  | -------------------------------

| |       |  |        
| | ----- |  | -------
| | 3.3.1 |  | Voting.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Subject to the restrictions contained in Section 5: (a) each First
Preferred Voting 2 Share entitles the holder to receive notice of,
to attend and to exercise one vote (in person or by proxy) at any
meeting of the holders of First Preferred Shares as a class or any
meeting of holders of First Preferred Voting 2 Shares as a series;
and (b) each holder of First Preferred Voting 2 Shares shall be
entitled to vote together with the holders of the Class A
Restricted Voting Shares on a as converted basis on any matter on
which holders of Class A Restricted Voting Shares are entitled to
vote.

| |       |  |                   
| | ----- |  | ------------------
| | 3.3.2 |  | Liquidation Event.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Upon any Liquidation Event, the holders of First Preferred Voting 2
Shares shall be entitled to receive, pari passuwith the holders of
First Preferred Non-Voting 2 Shares, First Preferred Voting Shares
and First Preferred Non-Voting Shares and in priority to any other
class of shares an amount per share equal to the FPS2 Redemption
Price. In the event of an insufficiency of assets to pay in full
the amounts to which the holders of First Preferred Voting 2 Shares
are entitled upon a Liquidation Event, holders of First Preferred
Voting 2 Shares, First Preferred Non-Voting 2 Shares, First
Preferred Voting Shares and First Preferred Non-Voting Shares shall
participate rateably in any distribution to holders of First
Preferred Shares, on a per share basis, in accordance with the
amounts to which they are respectively entitled upon such
Liquidation Event.

| |       |  |            
| | ----- |  | -----------
| | 3.3.3 |  | Redemption.

| |  |                                                                                                                                                                                                                                                                                             
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Each First Preferred Voting 2 Share will be automatically redeemed
at the FPS2 Redemption Price upon the repayment, redemption or
conversion of the First Unit of which it forms part. The First
Preferred Voting 2 Shares shall not be redeemed except as set forth
in this paragraph 3.3.3

| |       |  |           
| | ----- |  | ----------
| | 3.3.4 |  | Dividends.

| |  |                                                                                                                  
| |  | -----------------------------------------------------------------------------------------------------------------
| |  | The holders of First Preferred Voting 2 Shares shall not be
entitled to receive any dividends in respect thereof.



| | 3.4. |  | First Preferred Non-Voting Shares
| | ---- |  | ---------------------------------

| |       |  |        
| | ----- |  | -------
| | 3.4.1 |  | Voting.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The holders of the First Preferred Non-Voting Shares shall be
entitled to receive notice of and to attend any meeting of
shareholders at which the holders of First Preferred Voting Shares
are entitled to vote. Notwithstanding the foregoing, the First
Preferred Non-Voting Shares shall not entitle the holders thereof
to any voting rights either to vote at any meeting of the
shareholders of the Corporation





---



##### 



- 30 -

| |  |                                                                                                                                                                   
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | or to sign a resolution in writing, except as otherwise expressly
provided in these Articles or in the Act and subject to the
restrictions contained in Section 5.

| |       |  |           
| | ----- |  | ----------
| | 3.4.2 |  | Dividends.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The holders of the First Preferred Non-Voting Shares shall be
entitled to fixed, non-cumulative, preferred dividends at the rate
of 9% per annum calculated on the FPS Redemption Price payable, if
declared and subject to Section 6, in cash semi-annually in arrears, on the 1st day of June and
December of each year commencing on June 1, 2003. All dividends
declared on the First Preferred Voting Shares and on the First
Preferred Non-Voting Shares shall be declared and paid at the same
time, and in equal amounts, share for share, without any preference
or priority of one series over another but in priority to the
payment of any dividend on the Class A Restricted Voting Shares,
Class B Non-Voting Shares or any series of Second Preferred Shares.

| |       |  |                   
| | ----- |  | ------------------
| | 3.4.3 |  | Liquidation Event.

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Upon any Liquidation Event, the holders of the First Preferred
Non-Voting Shares shall be entitled to receive, pari passuwith the
holders of First Preferred Voting Shares, First Preferred Voting 2
Shares and First Preferred Non-Voting 2 Shares, and in priority to
any payment or distribution in respect of shares of any other
class, an amount per share equal to the FPS Redemption Price plus
any declared but unpaid dividends. In the event of an
insufficiency of assets to pay in full the amounts to which the
holders of the First Preferred Non-Voting Shares are entitled upon
a Liquidation Event, the holders of First Preferred Voting Shares,
First Preferred Non-Voting Shares, First Preferred Voting 2 Shares
and First Preferred Non-Voting 2 Shares shall participate rateably
in any distribution to holders of First Preferred Shares, in
accordance with the amounts to which they are respectively entitled
upon such Liquidation Event.

| |       |  |            
| | ----- |  | -----------
| | 3.4.4 |  | Conversion.

| |  |                                                                                  
| |  | ---------------------------------------------------------------------------------
| |  | The First Preferred Non-Voting Shares shall have the following
conversion rights:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | each First Preferred Non-Voting Share will be
convertible into one Class B Non-Voting Share at the option of
the holder at any time and upon the provision by such holder
of a duly completed and executed Holder Transaction Notice.
If applicable, upon receipt by the Transfer Agent of such
notice, the Corporation shall issue or cause to be issued a
share certificate representing fully-paid Class B Non-Voting
Shares;
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | (b) |  | if at any time prior to the fifth anniversary of
the Effective Date, the Corporation shall complete an offering
of Class A Restricted Voting Shares and/or Class B Non-Voting
Shares for gross proceeds of not less than $150,000,000 and at
a per share price equal to or greater than 200% of the current
FPS Redemption Price and the proceeds thereof are used as                                                           





---



##### 



- 31 -

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | described in Section 6, the
First Preferred Non-Voting Shares which remain outstanding
after the application of such proceeds may be converted, at
the option of the Corporation, at any time thereafter, into
Class B Non-Voting Shares, on a share-for-share basis, by way
of a Corporation Transaction Notice to such effect; the
Corporation Transaction Notice may be given at any time after
the completion of the offering of Class A Restricted Voting
Shares and/or Class B Non-Voting Shares provided that the
Corporation has applied the proceeds thereof as described in
Section 6 or has set aside
the monies for application as therein provided for;

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (c) |  | at any time on or after the fifth anniversary of
the Effective Date, each First Preferred Non-Voting Share will
automatically be converted into one Class B Non-Voting Share
if on the 25th day (or if such day is not a trading day, then
on the next following trading day) after the date of the press
release of the Corporation announcing its quarterly or annual
financial results, as the case may be, the First Preferred
Non-Voting Shares are In-the-Money, by way of a Corporation
Transaction Notice to such effect; and
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | (d) |  | under the circumstances described in subparagraph
3.4.6(b)(ii).                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | A holder of First Preferred Non-Voting Shares shall not be entitled
to any payment on account of the FPS Redemption Price upon exercise
of any conversion right by each holder or by the Corporation
pursuant to this paragraph 3.4.4.                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | All conversion rights provided for in this paragraph 3.4.4 are
subject to a registration statement having been filed by the
Corporation and having become effective under the 1933 Act or to an
exemption being available under the 1933 Act in connection with the
issuance of shares resulting form the exercise of such conversion
right. If such exemption is not available as of November 1, 2003,
the Corporation will file, on a date not earlier than November 1,
2003 and not later than December 1, 2003, such a registration
statement with the SEC and will use reasonable commercial efforts
to have the SEC declare such registration statement effective.

| |       |  |          
| | ----- |  | ---------
| | 3.4.5 |  | Exchange.

| |  |                                                                                                                                                                            
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Each First Preferred Non-Voting Share may be or will be, as the
case may be, exchangeable for one First Preferred Voting Share,
subject to the provisions of Section 7, if:

| |  |     |  |                                                                                                                                                                                                                                                                                        
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | at the option of the holder exercisable at any
time and from time to time by giving a Holder Transaction
Notice accompanied by a Residency Declaration whereby such
holder attests that it is Canadian. Upon receipt by the
Transfer Agent of such notice and, if applicable, Residency





---



##### 



- 32 -

| |  |                                                                                                                                          
| |  | -----------------------------------------------------------------------------------------------------------------------------------------
| |  | Declaration, the Corporation shall issue or cause to be
issued a share certificate representing fully-paid First
Preferred Voting Shares;

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (b) |  | automatically, if and to the extent that the
Canadian Ownership and Control Provisions are amended or
repealed such that persons in the Constrained Class are
permitted to hold First Preferred Voting Shares without
resulting in a contravention of the Canadian Ownership and
Control Provisions, provided no conversion thereunder shall
occur until at least 1% of the then outstanding First
Preferred Non-Voting Shares can be exchanged; or
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | (c) |  | any of the circumstances described in paragraph
3.4.7 hereof should occur, but only in the manner set out
therein.                                                                                                                                                                                                                                                                                                                                 

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Notwithstanding Section 3.4.5(a), Non-Canadian Secured Creditors
may exchange, by way of a Holder Transaction Notice to such effect,
in the aggregate, each on a pro rata basis, either (i) up to 30,000
First Preferred Non-Voting Shares for 30,000 First Preferred Voting
Shares, (ii) 30,000 Second Preferred Non-Voting Shares for 30,000
Second Preferred Voting Shares, or (iii) a combination of the above
not exceeding 30,000 shares, provided that such exchange would not
contravene the Canadian Ownership and Control Provisions.

| |       |  |            
| | ----- |  | -----------
| | 3.4.6 |  | Redemption.

| |  |                                                                                                                       
| |  | ----------------------------------------------------------------------------------------------------------------------
| |  | The First Preferred Non-Voting Shares may be, or will be, as the
case may be, redeemed in the following circumstances:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | at any time, in whole or in part, at the option
of the Corporation, at a price per share equal to the then
current FPS Redemption Price, in cash, provided however that
holders thereof may exercise any conversion rights prior to
any such redemption;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | (b) |  | on the tenth anniversary of the Effective Date
(i) the Corporation will redeem all of the First Preferred
Non-Voting Shares at a price per share equal to the then
current FPS Redemption Price payable in cash or (ii) at the
Corporations option, if the Class A Restricted Voting Shares
and the Class B Non-Voting Shares are then listed and posted
for trading on a Recognized Exchange, the First Preferred
Non-Voting Shares may be redeemed in consideration of the
issuance of such number of Class B Non-Voting Shares as is
equal to the quotient obtained when the FPS Redemption Price
as at the tenth anniversary of the Effective Date is divided
by the Average Common Share Price as of the day before the
tenth anniversary of the Effective Date;
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |  | (c) |  | the Corporation will redeem the First Preferred
Non-Voting Shares prior to the tenth anniversary of the
Effective Date at the then current FPS Redemption Price to the
extent that the Corporation has remaining Excess                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               





---



##### 



- 33 -

| |  |                                                                                                                                            
| |  | -------------------------------------------------------------------------------------------------------------------------------------------
| |  | Cash Flow, proceeds from Asset Dispositions and proceeds from
equity offerings available for such purposes as provided in
Section 6 hereof;

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (d) |  | the First Preferred Non-Voting Shares are
redeemable at any time prior to the tenth anniversary of the
Effective Date, in whole, at the option of the Corporation,
upon satisfaction of the FPS Redemption Price as at the
redemption date by issuing First Non-Voting Units listed on a
Recognized Exchange comprising First Notes having, in the
aggregate, principal amounts equal to the then current FPS
Redemption Price, provided that, concurrently with such
redemption, First Preferred Voting Shares are redeemed
pursuant to Section 3.2.6(d) and Second Preferred Shares are
redeemed pursuant to Section 4.2.6(d) and Section 4.4.6(d).

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Any redemption of First Preferred Non-Voting Shares pursuant to
this Section 3.4.6 shall be effected by way of a Corporation
Transaction Notice to such effect sent by the Corporation to each
holder of First Preferred Non-Voting Shares to be redeemed,
provided that in the case of a redemption under paragraph (a)
above, the Corporation Transaction Notice shall be sent at least
fifteen (15) Business Days before the date specified for redemption
of First Preferred Non-Voting Shares, during which period the
holders thereof may, if they so elect, exercise the conversion
rights attached to such First Preferred Non-Voting Shares pursuant
to Section 3.4.4(a) by way of a Holder Transaction Notice to such
effect.
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | So long as any First Preferred Non-Voting Shares remain
outstanding, on November 1st and May 1st of every year, starting on
November 1st, 2003, the FPS Redemption Price shall be increased by
an amount equal to the FPS Accretion Amount and reduced by the
amount of any cash dividend that has been declared and paid in
respect of such semi-annual period.                                                                                                                                                                                                                                                                                                                                                                       
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | In the event of any redemption or mandatory conversion of First
Preferred Non-Voting Shares other than as at the end of a
semi-annual period, the FPS Redemption Price of the First Preferred
Non-Voting Shares to be redeemed or converted shall be increased by
an amount equal to the FPS Accretion Amount, adjusted on a pro rata
basis with reference to the number of days from the beginning of
the then current semi-annual period to the date of such redemption
or conversion and reduced by the amount of any cash dividend that
has been declared and paid on such shares in respect of such
period.                                                                                                                       

| |       |  |           
| | ----- |  | ----------
| | 3.4.7 |  | Coattails.

| |  |     |  |                                                                              
| |  | --- |  | -----------------------------------------------------------------------------
| |  | (a) |  | In this Section 3.4.7, the following terms shall
have the following meanings:

| |  |                                                                                                                                    
| |  | -----------------------------------------------------------------------------------------------------------------------------------
| |  | Conversion Period means the period of time commencing on the
eighth day after the Offer Date and terminating on the Expiry Date
;





---



##### 



- 34 -

| |  |                                                                                                                                                                                               
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Converted Shares means First Preferred Voting Shares resulting
from the conversion of First Preferred Non-Voting Shares into First
Preferred Voting Shares pursuant to paragraph (b) hereof;
| |  |                                                                                                                                                                                               
| |  | Exclusionary Offer means an offer to purchase First Preferred
Voting Shares that:                                                                                                           

| |      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i)  |  | must, by reason of applicable
securities legislation or the requirements of the TSX or
the requirements of the Act, be made to all or
substantially all holders of First Preferred Voting
Shares who are in a province of Canada to which the
requirements apply; and                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (ii) |  | is not made concurrently with an
offer to purchase First Preferred Non-Voting Shares that
is identical to the offer to purchase First Preferred
Voting Shares in terms of price per share and percentage
of outstanding shares to be taken up exclusive of shares
owned immediately prior to the offer by the Offeror, and
in all other material respects (except with respect to
the conditions that may be attached to the offer for
First Preferred Voting Shares), and that has no
condition attached thereto other than the right not to
take up and pay for First Preferred Non-Voting Shares
tendered if no First Preferred Voting Shares are
purchased pursuant to the offer for First Preferred
Voting Shares;

| |  |                                                                                                                                                                                                                                                                                                                                                                                            
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | for the purposes of this definition, if an offer to purchase First
Preferred Voting Shares would be an Exclusionary Offer but for the
provisions of clause (ii), the varying of any term of such offer
shall be deemed to constitute the making of a new offer unless an
identical variation concurrently is made to the corresponding offer
to purchase First Preferred Non-Voting Shares;
| |  |                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Expiry Date means the last date upon which holders of First
Preferred Voting Shares may accept an Exclusionary Offer;                                                                                                                                                                                                                                                                    
| |  |                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Offer Date means the date on which an Exclusionary Offer is made;                                                                                                                                                                                                                                                                                                                        
| |  |                                                                                                                                                                                                                                                                                                                                                                                            
| |  | Offeror means a person that makes an offer to purchase First
Preferred Voting Shares (the bidder), and includes any associate
or affiliate of the bidder or any person that is acting jointly or
in concert with the bidder (whether or not disclosed in the
offering document relating to such offer);                                                                                

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) |  | Subject to paragraph (f) hereof, if an
Exclusionary Offer is made, each outstanding First Preferred
Non-Voting Share shall be convertible into one fully paid
First Preferred Voting Share at the option of the holder
thereof exercisable by giving a Holder Transaction Notice any
time during the Conversion Period accompanied by: (a) the
share certificate or certificates representing the First
Preferred Non-Voting Shares which the holder desires to
convert; and (b) the letters of transmittal, directions,





---



##### 



- 35 -

| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | transfers, powers of attorney and other documentation duly
executed by the holder or by his or her attorney duly
authorized in writing as is specified by the Transfer Agent
for the First Preferred Voting Shares, acting reasonably, as
being required to give full effect to the reconversion into
First Preferred Non-Voting Shares of the Converted Shares as
contemplated by paragraphs (d) and (e). Upon receipt by the
Transfer Agent of such notice and share certificate or
certificates, the Corporation shall issue or cause to be
issued a share certificate representing fully-paid First
Preferred Voting Shares as prescribed above and in accordance
with paragraph (e). If less than all of the First Preferred
Non-Voting Shares represented by any share certificate are to
be converted, the holder shall be entitled to receive a new
share certificate representing in the aggregate the number of
First Preferred Non-Voting Shares represented by the original
share certificate which are not to be converted.

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) |  | Notwithstanding the conversion rights provided
for under paragraph (b) above, no holder of First Preferred
Non-Voting Shares shall be entitled to exercise such
conversion right if the Offeror under any Exclusionary Offer
is acting in concert with such holder, is an associate or an
affiliate of such holder or if under any applicable securities
laws the shares of such holder and the Offeror are deemed to
be held by the same person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (d) |  | An election by a holder of First Preferred
Non-Voting Shares to exercise the conversion right provided
for in paragraph (b) shall be deemed to also constitute
irrevocable elections by such holder (i) to deposit the
Converted Shares in acceptance of the Exclusionary Offer
(subject to such holders rights to subsequently withdraw such
Converted Shares from the Exclusionary Offer in accordance
with the terms thereof and applicable law); and (ii) to
exercise the right to convert into First Preferred Non-Voting
Shares all Converted Shares in respect of which such holder
exercises his or her right of withdrawal from the Exclusionary
Offer or which are not otherwise ultimately taken up and paid
for under the Exclusionary Offer. Any conversion of Converted
Shares into First Preferred Non-Voting Shares pursuant to such
deemed election in respect of which the holder exercises his
or her right of withdrawal from the Exclusionary Offer shall
become effective at the time such right of withdrawal is
exercised. If the right of withdrawal is not exercised, any
conversion into First Preferred Non-Voting Shares pursuant to
such deemed election shall become effective as follows:

| |     |  |                                                                                                                                                                                                                                                                                                                                                                    
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) |  | in respect of an Exclusionary Offer
which is completed, any shares which are not otherwise
ultimately taken up and paid for under the Exclusionary
Offer, immediately following the time by which the
Offeror is required under applicable securities
legislation to take up and pay for all shares to be
acquired by the Offeror under the Exclusionary Offer;
and





---



##### 



- 36 -

| |      |  |                                                                                                                                            
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) |  | in respect of an Exclusionary Offer
which is abandoned or withdrawn, at the time at which
the Exclusionary Offer is abandoned or withdrawn.

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) |  | No share certificates representing Converted
Shares shall be delivered to or to the order of the holders of
such shares before such shares are deposited pursuant to the
Exclusionary Offer; the Transfer Agent, on behalf of the
holders of the Converted Shares, shall deposit pursuant to the
Exclusionary Offer a certificate or certificates representing
the Converted Shares. Upon completion of the Exclusionary
Offer, the Transfer Agent shall deliver or cause to be
delivered to the holders entitled thereto all consideration
paid by the Offeror pursuant to the Exclusionary Offer in
respect of the Converted Shares. If Converted Shares are
converted into First Preferred Non-Voting Shares in accordance
with the deemed election in paragraph (d), the Transfer Agent
shall deliver to the holders entitled thereto a share
certificate representing the First Preferred Non-Voting Shares
resulting from the conversion. The Corporation shall make all
arrangements with the Transfer Agent necessary or desirable to
give effect to this paragraph (e).
| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (f) |  | Subject to paragraph (g) hereof, the conversion
right provided for in paragraph (b) hereof shall not come into
effect if:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) |  | prior to the time at which the
Exclusionary Offer is made there is delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate, as at the time the Exclusionary Offer is
made, more than 50% of the then outstanding First
Preferred Voting Shares, exclusive of shares owned
immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder, that such
shareholder shall not:

| |     |  |                                                                                                                                                                                                                                        
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) |  | tender any shares in
acceptance of the Exclusionary Offer without
giving the Transfer Agent and the Secretary of the
Corporation written notice of such acceptance or
intended acceptance at least seven days prior to
the Expiry Date;
| |     |  |                                                                                                                                                                                                                                        
| | (B) |  | make any Exclusionary
Offer;                                                                                                                                                                                                           
| |     |  |                                                                                                                                                                                                                                        
| | (C) |  | act jointly or in concert
with any person that makes any Exclusionary Offer;
or                                                                                                                                                        
| |     |  |                                                                                                                                                                                                                                        
| | (D) |  | transfer any First
Preferred Voting Share, directly or indirectly,
during the time at which any Exclusionary Offer is
outstanding without giving the Transfer Agent and
the Secretary of the Corporation written notice of
such        





---



##### 



- 37 -

| |  |                                                                                                                                                                                                                                                                    
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | transfer or intended transfer at least seven days
prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of First Preferred
Voting Shares transferred or to be transferred to
each transferee;

| |    |  | 
| | -- |  | 
| | or |  | 

| |      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | ---- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) |  | as of the end of the seventh day
after the Offer Date there has been delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate more than 50% of the then outstanding
First Preferred Voting Shares, exclusive of shares owned
immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder:

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) |  | the number of First
Preferred Voting Shares owned by the shareholder;                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (B) |  | that such shareholder is
not making the Exclusionary Offer and is not an
associate or affiliate of, or acting jointly or in
concert with, the person or company making the
offer;                                                                                                                                                                                                                                                                                                             
| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (C) |  | that such shareholder
shall not tender any shares in acceptance of the
offer, including any varied form of the offer,
without giving the Transfer Agent and the
Secretary of the Corporation written notice of
such acceptance or intended acceptance at least
seven days prior to the Expiry Date; and                                                                                                                                                                                       
| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (D) |  | that such shareholder
shall not transfer any First Preferred Voting
Shares, directly or indirectly, prior to the
Expiry Date without giving the Transfer Agent and
the Secretary of the Corporation written notice of
such transfer or intended transfer at least seven
days prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of First Preferred
Voting Shares transferred or to be transferred to
each transferee;

| |    |  | 
| | -- |  | 
| | or |  | 

| |       |  |                                                                                                                                                                                                                                                                                                                                  
| | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) |  | as of the end of the seventh day
after the Offer Date a combination of certificates that
comply with either clause (i) or (ii) from shareholders
of the Corporation owning in the aggregate more than 50%
of the then outstanding First Preferred Voting Shares,
exclusive of shares owned immediately prior, to the
Exclusionary





---



##### 



- 38 -

| |  |                                                                                                             
| |  | ------------------------------------------------------------------------------------------------------------
| |  | Offer Date by the Offeror, has been delivered to the
Transfer Agent and to the Secretary of the Corporation.

| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (g) |  | If a notice referred to in sub-clause
3.4.7(f)(i)(A) or (D) or 3.4.7(f)(ii)(C) or (D) hereof is
given and the conversion right provided for in paragraph (b)
hereof has not come into effect, the Transfer Agent shall
either forthwith upon receipt of the notice or forthwith after
the seventh day following the Offer Date, whichever is later,
determine the number of First Preferred Voting Shares in
respect of which there are subsisting certificates that comply
with either subparagraph (f)(i) or (f)(ii) hereof. For the
purpose of this determination, certificates in respect of
which such a notice has been filed shall not be regarded as
subsisting insofar as the First Preferred Voting Shares to
which the notice relates are concerned; the transfer that is
the subject of any notice referred to in sub-clause (f)(i)(D)
or (f)(ii)(D) hereof shall be deemed to have already taken
place at the time of the determination; and the transferee in
the case of any notice referred to in sub-clause (f)(i)(D) or
(f)(ii)(D) hereof shall be deemed to be a person from whom the
Transfer Agent does not have a subsisting certificate unless
the Transfer Agent is advised of the identity of the
transferee, either by such notice or by the transferee in
writing, and such transferee is a person from whom the
Transfer Agent has a subsisting certificate. If the number of
First Preferred Voting Shares so determined does not exceed
80% of the number of then outstanding First Preferred Voting
Shares, exclusive of shares owned immediately prior to the
offer by the Offeror, paragraph (f) hereof shall cease to
apply and the conversion right provided for in paragraph (b)
hereof shall be in effect for the remainder of the Conversion
Period.
| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (h) |  | As soon as reasonably possible after the seventh
day after the Offer Date, the Corporation shall send to each
holder of First Preferred Non-Voting Shares a notice advising
the holders as to whether they are entitled to convert their
First Preferred Non-Voting Shares into First Preferred Voting
Shares and the reasons therefor. If such notice discloses
that they are not so entitled but it is subsequently
determined that they are so entitled by virtue of paragraph
(g) hereof or otherwise, the Corporation shall forthwith send
another notice to them advising them of that fact and the
reasons therefor. Failure to send such notice will not
adversely affect the rights of the holders of First Preferred
Non-Voting Shares hereunder.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | (i) |  | If a notice referred to in paragraph (h) hereof
discloses that the conversion right has come into effect, the
notice shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

| |      |  |                                                                                                                                          
| | ---- |  | -----------------------------------------------------------------------------------------------------------------------------------------
| | (i)  |  | include a description of the
procedure to be followed to effect the conversion and to
have the Converted Shares tendered under the offer;
| |      |  |                                                                                                                                          
| | (ii) |  | include the information set out in
paragraph (d) hereof; and                                                                             





---



##### 



- 39 -



| |     | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                           | be accompanied by a copy of the
Exclusionary Offer and all other material sent to
holders of First Preferred Voting Shares in respect of
such offer, and as soon as reasonably possible after any
additional material, including any notice of variation,
is sent to the holders of First Preferred Voting Shares
in respect of the offer, the Corporation shall send a
copy of such additional material to each holder of First
Preferred Non-Voting Shares.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (j) | Forthwith after sending any notice referred to in
paragraph (h) hereof, the Corporation shall cause a press
release to be issued to a Canadian national news-wire service,
describing the contents of the notice.                                                                                                                                                                                                                              
|
| | (k) | Notwithstanding the provisions of the Act, in the
event that any Converted Shares are reconverted into First
Preferred Non-Voting Shares pursuant to the provisions of
paragraph (d) above, the stated capital account in respect of
such First Preferred Non-Voting Shares shall be increased by
the amount by which the stated capital account maintained for
such shares was reduced by the conversion of such shares into
Converted Shares.



|3.5. | First Preferred Non-Voting 2 Shares
|---- | -----------------------------------



| | 3.5.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | Voting.          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------
|
| | The holders of the First Preferred Non-Voting 2 Shares shall be
entitled to receive notice of and to attend any meeting of
shareholders at which the holders of First Preferred Voting Shares
are entitled to vote. Notwithstanding the foregoing, the First
Preferred Non-Voting 2 Shares shall not entitle the holders thereof
to any voting rights either to vote at any meeting of the
shareholders of the Corporation or to sign a resolution in writing,
except as otherwise expressly provided in these Articles and in the
Act and subject to the restrictions contained in Section 5.                                                                                                                                                                                                                                                                                                                
|
| | 3.5.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | Liquidation, etc.
|
| | Upon any Liquidation Event, the holders of the First Preferred
Non-Voting 2 Shares shall be entitled to receive, pari passuwith
the holders of First Preferred Voting 2 Shares, First Preferred
Voting Shares and First Preferred Non-Voting Shares and in priority
to any other class of shares an amount per share equal to the FPS2
Redemption Price. In the event of an insufficiency of assets to
pay in full the amounts to which the holders of the First Preferred
Non-Voting 2 Shares are entitled upon a Liquidation Event, holders
of First Preferred Voting 2 Shares, First Preferred Non-Voting 2
Shares, First Preferred Voting Shares and First Preferred
Non-Voting Shares shall, on a per share basis, participate rateably
in any distribution to the holders of First Preferred Shares, in
accordance with the amounts to which they are respectively entitled
upon such Liquidation Event.





---



##### 



- 40 -



| | 3.5.3                                                                                                                                                                           | Exchange.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | Each First Preferred Non-Voting 2 Share may be or will be, as the
case may be, exchanged for one First Preferred Voting 2 Share,
subject always to the provisions of Section 7:
|
| | (a)                                                                                                                                                                             | at the option of the holder exercisable at any
time and from time to time by giving a Holder Transaction
Notice accompanied by a Residency Declaration whereby such
holder attests that it is Canadian. Upon receipt by the
Transfer Agent of such notice and, if applicable, Residency
Declaration representing the First Non-Voting Units of which
the First Preferred Non-Voting 2 Share form part, the
Corporation shall issue or cause to be issued certificate or
certificates representing First Voting Units;
|
| | (b)                                                                                                                                                                             | automatically, if and to the extent that the
Canadian Ownership and Control Provisions are amended or
repealed such that persons in the Constrained Class are
permitted to hold First Preferred Voting 2 Shares without
resulting in a contravention of the Canadian Ownership and
Control Provisions provided no exchange hereunder may occur
until at least 1% of the then outstanding First Preferred
Non-Voting 2 Shares can be exchanged; or                                                                    
|
| | (c)                                                                                                                                                                             | any of the circumstances described in paragraph
3.5.4 hereof should occur, but only in the manner set out
therein.                                                                                                                                                                                                                                                                                                                                                                                                   
|
| | 3.5.4                                                                                                                                                                           | Coattails.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (a)                                                                                                                                                                             | In this paragraph 3.5.4 hereof, the following
terms shall have the following meanings:                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| | Conversion Period means the period of time commencing on the
eighth day after the Offer Date and terminating on the Expiry Date
;                                            
|
| | Converted Units means First Voting Units resulting from the
conversion of First Non-Voting Units into First Voting Units
pursuant to paragraph (b) hereof;                   
|
| | Exclusionary Offer means an offer to purchase First Voting Units
that:                                                                                                       
|

| | (i)  | must, by reason of applicable
securities legislation or the requirements of the TSX or
the requirements of the Act, be made to all or
substantially all holders of First Voting Units who are
in a province of Canada to which the requirements apply;
and   
| | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) | is not made concurrently with an
offer to purchase First Non-Voting Units that is
identical to the offer to purchase First Voting Units in
terms of price per share and percentage of outstanding
shares to be taken up exclusive of shares owned
immediately





---



##### 



- 41 -



| | prior to the offer by the Offeror , and in all other
material respects (except with respect to the
conditions that may be attached to the offer for First
Voting Units), and that has no condition attached
thereto other than the right not to take up and pay for
First Non-Voting Units tendered if no First Voting
Units are purchased pursuant to the offer for First
Voting Units;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | for the purposes of this definition, if an offer to purchase First
Voting Units would be an Exclusionary Offer but for the provisions
of clause (ii), the varying of any term of such offer shall be
deemed to constitute the making of a new offer unless an identical
variation concurrently is made to the corresponding offer to
purchase First Non-Voting Units;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | Expiry Date means the last date upon which holders of First
Voting Units may accept an Exclusionary Offer;                                                                                                                                                                                                                                                         
|
| | Offer Date means the date on which an Exclusionary Offer is made;                                                                                                                                                                                                                                                                                                  
|
| | Offeror means a person that makes an offer to purchase First
Voting Units (the bidder), and includes any associate or
affiliate of the bidder or any person that is acting jointly or in
concert with the bidder (whether or not disclosed in the offering
document relating to such offer); and                                                                 
|
| | (b)                                                                                                                                                                                                                                                                                                                                                                  
|
| | (c)                                                                                                                                                                                                                                                                                                                                                                  





---



##### 



- 42 -



| |     | such conversion right if the Offeror under any Exclusionary
Offer is acting in concert with such holder, is an associate
or an affiliate of such holder or if under any applicable
securities laws the shares of such holder and the Offeror are
deemed to be held by the same person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (d) | An election by a holder of First Non-Voting Units
to exercise the conversion right provided for in paragraph (b)
shall be deemed to also constitute irrevocable elections by
such holder (i) to deposit the Converted Units in acceptance
of the Exclusionary Offer (subject to such holders rights to
subsequently withdraw such Converted Units from the
Exclusionary Offer in accordance with the terms thereof and
applicable law); and (ii) to exercise the right to convert
into First Non-Voting Units all Converted Units in respect of
which such holder exercises his or her right of withdrawal
from the Exclusionary Offer or which are not otherwise
ultimately taken up and paid for under the Exclusionary Offer.
Any conversion of Converted Units into First Non-Voting Units
pursuant to such deemed election in respect of which the
holder exercises his or her right of withdrawal from the
Exclusionary Offer shall become effective at the time such
right of withdrawal is exercised. If the right of withdrawal
is not exercised, any conversion into First Non-Voting Units
pursuant to such deemed election shall become effective as
follows:
|

| |  | (i)  | in respect of an Exclusionary Offer
which is completed, any shares which are not otherwise
ultimately taken up and paid for under the Exclusionary
Offer, immediately following the time by which the
Offeror is required under applicable securities
legislation to take up and pay for all shares to be
acquired by the Offeror under the Exclusionary Offer;
and
| |  | ---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | (ii) | in respect of an Exclusionary Offer
which is abandoned or withdrawn, at the time at which
the Exclusionary Offer is abandoned or withdrawn.                                                                                                                                                                                                                        
|

| | (e) | No share certificates representing Converted
Units shall be delivered to or to the order of the holders of
such shares before such shares are deposited pursuant to the
Exclusionary Offer; the Transfer Agent, on behalf of the
holders of the Converted Units, shall deposit pursuant to the
Exclusionary Offer a certificate or certificates representing
the Converted Units. Upon completion of the Exclusionary
Offer, the Transfer Agent shall deliver or cause to be
delivered to the holders entitled thereto all consideration
paid by the Offeror pursuant to the Exclusionary Offer in
respect of the Converted Units. If Converted Units are
converted into First Non-Voting Units in accordance with the
deemed election in paragraph (d), the Transfer Agent shall
deliver to the holders entitled thereto a share certificate
representing the First Non-Voting Units resulting from the
conversion. The Corporation shall make all
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



- 43 -



| |  | arrangements with the Transfer Agent necessary or desirable
to give effect to this paragraph (e).
| |  | -------------------------------------------------------------------------------------------------
|

| | (f) | Subject to paragraph (g) hereof, the conversion
right provided for in paragraph (b) hereof shall not come into
effect if:
| | --- | -------------------------------------------------------------------------------------------------------------------------
|

| | (i) |  | prior to the time at which the
Exclusionary Offer is made there is delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate, as at the time the Exclusionary Offer is
made, more than 50% of the then outstanding First Voting
Units, exclusive of shares owned immediately prior to
the Exclusionary Offer by the Offeror, which certificate
or certificates shall confirm, in the case of each such
shareholder, that such shareholder shall not:
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | (A) | tender any shares in
acceptance of the Exclusionary Offer without
giving the Transfer Agent and the Secretary of the
Corporation written notice of such acceptance or
intended acceptance at least seven days prior to
the Expiry Date;                                                                                                                                                                                                                                                   
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (B) | make any Exclusionary
Offer;                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| | (C) | act jointly or in concert
with any person that makes any Exclusionary Offer;
or                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (D) | transfer any First
Preferred Voting 2 Share, directly or indirectly,
during the time at which any Exclusionary Offer is
outstanding without giving the Transfer Agent and
the Secretary of the Corporation written notice of
such transfer or intended transfer at least seven
days prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of First Voting
Units transferred or to be transferred to each
transferee;
|

| | or   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | as of the end of the seventh day
after the Offer Date there has been delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate more than 50% of the then outstanding
First Voting Units, exclusive of shares owned
immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder:





---



##### 



- 44 -



| | (A) | the number of First
Voting Units owned by the shareholder;                                                                                                                                                                                                                                                                                                                                                                                                              
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (B) | that such shareholder is
not making the Exclusionary Offer and is not an
associate or affiliate of, or acting jointly or in
concert with, the person or company making the
offer;                                                                                                                                                                                                                                                                                       
|
| | (C) | that such shareholder
shall not tender any shares in acceptance of the
offer, including any varied form of the offer,
without giving the Transfer Agent and the
Secretary of the Corporation written notice of
such acceptance or intended acceptance at least
seven days prior to the Expiry Date; and                                                                                                                                                                 
|
| | (D) | that such shareholder
shall not transfer any First Voting Units,
directly or indirectly, prior to the Expiry Date
without giving the Transfer Agent and the
Secretary of the Corporation written notice of
such transfer or intended transfer at least seven
days prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of First Voting
Units transferred or to be transferred to each
transferee;
|

| | or |  | 
| | -- |  | 
|

| | (iii) |  | as of the end of the seventh day
after the Offer Date a combination of certificates that
comply with either clause (i) or (ii) from shareholders
of the Corporation owning in the aggregate more than 50%
of the then outstanding First Voting Units, exclusive of
shares owned immediately prior, to the Exclusionary
Offer Date by the Offeror, has been delivered to the
Transfer Agent and to the Secretary of the Corporation.
| | ----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | (g) | If a notice referred to in sub-clause
3.5.4(f)(i)(A) or (D) or 3.5.4(f)(ii)(C) or (D) hereof is given
and the conversion right provided for in paragraph (b) hereof
has not come into effect, the Transfer Agent shall either
forthwith upon receipt of the notice or forthwith after the
seventh day following the Offer Date, whichever is later,
determine the number of First Voting Units in respect of which
there are subsisting certificates that comply with either
clause (f)(i) or (f)(ii) hereof. For the purpose of this
determination, certificates in respect of which such a notice
has been filed shall not be regarded as subsisting insofar as
the First Voting Units to which the notice relates are
concerned; the transfer that is the subject of any notice
referred to in sub-clause (f)(i)(D) or (f)(ii)(D) hereof shall
be deemed to have already taken place at the time of the
determination; and the transferee in the case of any notice
referred to in sub-clause (f)(i)(D) or (f)(ii)(D) hereof shall
be deemed to be a person from whom the Transfer Agent does not
have a subsisting certificate unless the Transfer Agent is
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



- 45 -



| |     | advised of the identity of the transferee, either by such
notice or by the transferee in writing, and such transferee
is a person from whom the Transfer Agent has a subsisting
certificate. If the number of First Voting Units so
determined does not exceed 80% of the number of then
outstanding First Voting Units, exclusive of shares owned
immediately prior to the offer by the Offeror, paragraph (f)
hereof shall cease to apply and the conversion right provided
for in paragraph (b) hereof shall be in effect for the
remainder of the Conversion Period.                                                                                                                                   
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (h) | As soon as reasonably possible after the seventh
day after the Offer Date, the Corporation shall send to each
holder of First Non-Voting Units a notice advising the holders
as to whether they are entitled to convert their First
Non-Voting Units into First Voting Units and the reasons
therefor. If such notice discloses that they are not so
entitled but it is subsequently determined that they are so
entitled by virtue of subparagraph (g) or otherwise, the
Corporation shall forthwith send another notice to them
advising them of that fact and the reasons therefor. Failure
to send such notice will not adversely affect the rights of
the holders of First Non-Voting Units hereunder.
|
| | (i) | If a notice referred to in subparagraph (h)
discloses that the conversion right has come into effect, the
notice shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|

| | (i)   |  | include a description of the
procedure to be followed to effect the conversion and to
have the Converted Units tendered under the offer;                                                                                                                                                                                                                                                                                    
| | ----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii)  |  | include the information set out in
paragraph (d) hereof; and                                                                                                                                                                                                                                                                                                                                                                
|
| | (iii) |  | be accompanied by a copy of the
Exclusionary Offer and all other material sent to
holders of First Voting Units in respect of such offer,
and as soon as reasonably possible after any additional
material, including any notice of variation, is sent to
the holders of First Voting Units in respect of the
offer, the Corporation shall send a copy of such
additional material to each holder of First Non-Voting
Units.
|

| | (j)                                                                                                           | Forthwith after sending any notice referred to in
paragraph (h), the Corporation shall cause a press release to
be issued to a Canadian national news-wire service, describing
the contents of the notice.
| | ------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 3.5.5                                                                                                         | Dividends.                                                                                                                                                                                                
|
| | The holders of First Preferred Non-Voting 2 Shares shall not be
entitled to any dividends in respect thereof.





---



##### 



- 46 -



| | 3.5.6                                                                                                                                                                                                                                                                                  |  | Redemption.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------
|
| | Each First Preferred Non-Voting 2 Share will be automatically
redeemed at the FPS2 Redemption Price upon the repayment or
conversion of the First Unit of which it forms part. The First
Preferred Non-Voting 2 Shares shall not be redeemable except as set
forth in paragraph 3.5.6.
|

| | 3.6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  | Certain Adjustments.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | --------------------
|
| | If the Corporation shall subdivide the Class A Restricted Voting Shares
or Class B Non-Voting Shares into a greater number of shares or shall
issue in exchange for the Class A Restricted Voting Shares or Class B
Non-Voting Shares a greater number of Class A Restricted Voting Shares or
Class B Non-Voting Shares then in such case from and after the effective
date of such subdivision or exchange of shares the conversion or
redemption rate for the First Preferred Shares shall be increased in
proportion to the increase in the number of outstanding Class A
Restricted Voting Shares or Class B Non-Voting Shares resulting from such
subdivision or exchange; and if the Corporation shall reduce the number
of Class A Restricted Voting Shares or Class B Non-Voting Shares by
combination or consolidation of shares or shall issue in exchange for the
outstanding Class A Restricted Voting Shares or Class B Non-Voting Shares
a smaller number of Class A Restricted Voting Shares or Class B
Non-Voting Shares then in each case from and after the effective date of
such combination, consolidation or exchange of shares the conversion or
redemption rate for the First Preferred Shares shall be decreased in
proportion to the decrease in the number of the outstanding Class A
Restricted Voting Shares or Class B Non-Voting Shares resulting from such
combination, consolidation or exchange of shares. In the event of any
Fundamental Transaction and from and after the effective date of each
such Fundamental Transaction, the conversion or redemption rate for the
First Preferred Shares shall be adjusted in proportion to the adjustment
in the number of the outstanding Class A Restricted Voting Shares or
Class B Non-Voting Shares resulting from such Fundamental Transaction or,
if applicable, the conversion or redemption rate of the First Preferred
Shares shall be adjusted so as to provide for a conversion or redemption
into the shares or securities entitled to be received by holders of Class
A Restricted Voting Shares or Class B Non-Voting Shares pursuant to the
Fundamental Transaction.
|
| | The Corporation shall not subdivide any series of First Preferred Shares
into a greater number of shares or issue in exchange for any series of
First Preferred Shares a greater number of First Preferred Shares
without, concurrently therewith, effecting a subdivision or exchange of
all First Preferred Shares and all Second Preferred Shares in the same
proportion; and the Corporation shall not reduce the number of any series
of First Preferred Shares by combination or consolidation of shares or
issue in exchange for any series of First Preferred Shares a smaller
number of First Preferred Shares without effecting concurrently therewith
a combination, consolidation or exchange of shares of all First Preferred
Shares and all Second Preferred Shares in the same proportion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | The Corporation shall not issue fractional shares in satisfaction of the
conversion or redemption rights herein provided for. Where the exercise
of conversion or redemption rights would otherwise result in fractional
shares being issued, the number of shares to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             





---



##### 



- 47 -



| |  | be issued by the Corporation shall be rounded down to the nearest whole
number of shares.
| |  | -----------------------------------------------------------------------------------------



|4. |  | SECOND PREFERRED SHARES                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   |  | Subject to the Articles, the Second Preferred Shares have attached
thereto the rights, privileges, conditions and restrictions set forth in
this Section 4.                                                                                                                                                                                                                                                                                                              
|  
|   |  | The Second Preferred Shares shall be issued in the following series, each
series consisting in a unlimited number of shares: Second Preferred
Voting Shares, Second Preferred Voting 2 Shares, Second Preferred
Non-Voting Shares and Second Preferred Non-Voting 2 Shares. Subject
always to the prior rights of the holders of any class or series of First
Preferred Shares, the Second Preferred Shares of all series shall rank on
parity with each other.          
|  
|   |  | If the Second Preferred Shares are determined to be taxable preferred
shares other than short term preferred shares (as such terms are
respectively defined in the ITA), the Corporation will make an election
under Subsection 191.2(1) of the ITA to increase its tax liability under
Part VI.1 of the ITA to 40% or such other rate required so that no holder
of such shares would be required to pay tax under Part IV.1 of the ITA on
dividends on such shares.



| | 4.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | Anti-Layering
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------
|
| | Provided there remain outstanding Second Instruments of any type or class
representing in the aggregate an Initial Issue Price in excess of
$50,000,000, the approval: (i) by written resolution signed by holders of
Second Instruments representing a majority of Second Instruments then
outstanding (measured by reference to their redemption price or face
amount, as the case may be) or (ii) by a majority of votes cast by the
holders of Second Instruments represented in person or by proxy at a
meeting called for such purpose will be required before the Corporation
and its subsidiaries either (X) issue any shares ranking prior to or pari
passuwith the Second Preferred Shares (other than First Preferred Shares
issued on the Effective Date and other than any series of First Preferred
Shares or Second Preferred Shares forming part of First Units or Second
Units, as the case may be, issued upon redemption of First Preferred
Shares or Second Preferred Shares, respectively), or (Y) incur Funded
Debt (other than as permitted under the Credit Facilities, First Units or
Second Units), as a result of which the aggregate consolidated Funded
Debt of the Corporation (other than Funded Debt of Unrestricted
Subsidiaries) would be in excess of 4.0 times consolidated annual EBITDA
(other than EBITDA of Unrestricted Subsidiaries), calculated on a pro
formabasis based upon the consolidated EBITDA (other than EBITDA of
Unrestricted Subsidiaries) for the four (4) consecutive quarters ended as
at the fiscal quarter-end immediately prior to the date of the resolution
of the Board approving such incurrence.





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##### 



- 48 -



| | 4.2. |  | Second Preferred Voting Shares
| | ---- |  | ------------------------------
|

| | 4.2.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Voting.           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------
|
| | Subject to the restrictions contained in Section 5: (a) each Second
Preferred Voting Share entitles the holder to receive notice of, to
attend and to exercise one vote (in person or by proxy) at any
meeting of holders of Second Preferred Shares as a class or at any
meeting of holders of Second Preferred Voting Shares as a series;
and (b) each holder of Second Preferred Voting Shares shall be
entitled to vote together with the holders of the Class A
Restricted Voting Shares on a as converted basis, on any matter
on which holders of the Class A Restricted Voting Shares are
entitled to vote.                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | 4.2.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Dividends.        
|
| | The holders of the Second Preferred Voting Shares shall be entitled
to fixed, non-cumulative, preferred dividends at the rate of 9% per
annum calculated on the SPS Redemption Price, payable, if declared
and subject to Section 6, in cash semi-annually, in arrears, on the
1st day of June and December of each year, commencing on June 1,
2003. All dividends declared on the Second Preferred Voting Shares
and on the Second Preferred Non-Voting Shares shall be declared and
paid at the same time, and in equal amounts, share-for-share,
without any preference or priority of one series over another. All
such dividends shall be payable always in preference and priority
to any payment of dividends on the Class A Restricted Voting
Shares, Class B Non-Voting Shares, or any other shares ranking
junior to the Second Preferred Shares, but after payment of
dividends to the holders of First Preferred Voting Shares and First
Preferred Non-Voting Shares.                                                           
|
| | 4.2.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Liquidation Event.
|
| | Upon any Liquidation Event, the holders of the Second Preferred
Voting Shares shall be entitled to receive pari passuwith the
holders of the Second Preferred Non-Voting Shares, the Second
Preferred Voting 2 Shares and Second Preferred Non-Voting 2 Shares
and in priority to any payment or distribution in respect of shares
of any other class (other than First Preferred Shares), an amount
per share equal to the SPS Redemption Price plus any declared but
unpaid dividends. In the event of an insufficiency of assets to
pay in full the amounts to which the holders of the Second
Preferred Voting Share are entitled upon a Liquidation Event, the
holders of Second Preferred Voting Shares, Second Preferred
Non-Voting Shares, Second Preferred Voting 2 Shares and Second
Preferred Non-Voting 2 Shares shall, on a per share basis,
participate rateably in any distribution to holders of Second
Preferred Shares, in accordance with the amounts to which they are
respectively entitled upon such Liquidation Event.
|
| | 4.2.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Conversion.       
|
| | The Second Preferred Voting Shares shall have the following
conversion rights:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               





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##### 



- 49 -



| | (a) |  | each Second Preferred Voting Share will be
convertible into one Class A Restricted Voting Share at the
option of the holder at any time and from time to time,
subject always to the provisions of Section 7, upon the
provision of any completed and executed Holder Transaction
Notice. If applicable, upon receipt by the Transfer Agent of
such notice and share certificate or certificates, the
Corporation shall issue or cause to be issued a share
certificate representing fully-paid Class A Restricted Voting
Shares;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (b) |  | if at any time prior to the fifth anniversary of
the Effective Date, the Corporation shall complete an offering
of Class A Restricted Voting Shares and/or Class B Non-Voting
Shares for gross proceeds of not less than $150,000,000 and at
a per share price equal to or greater than 200% of the then
current SPS Redemption Price and the proceeds thereof are used
as described in Section 6 hereof, then the Second Preferred
Voting Shares which remain outstanding after the application
of such proceeds may be converted, at the option of the
Corporation, at any time thereafter, into Class A Restricted
Voting Shares, on a share-for-share basis, by way of a
Corporation Transaction Notice to such effect; the Corporation
Transaction Notice may be given at any time after the
completion of the offering of Class A Restricted Voting Shares
and/or Class B Non-Voting Shares provided that the Corporation
has applied the proceeds thereof as described in Section 6 or
has set aside the monies for application as therein provided
for;
|
| | (c) |  | each Second Preferred Voting Share will
automatically be converted into one Class A Restricted Voting
Share, subject to the Conversion Adjustment, if on the 25th
day (or if such is not a trading day, then on the next
following trading day) after the date of the press release of
the Corporation announcing its quarterly or annual financial
results, as the case may be, at any time on or after the fifth
anniversary of the Effective Date, the Second Preferred Voting
Shares are In-the-Money, by way of a Corporation Transaction
Notice to such effect; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | (d) |  | under the circumstances described in subparagraph
4.2.6(b)(ii).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                



| | A holder of Second Preferred Voting Shares shall not be entitled to
any payment on account of the SPS Redemption Price upon exercise of
any conversion right by such holder or by the Corporation pursuant
to this paragraph 4.2.4.                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | All conversion rights provided for in this paragraph 4.2.4 are
subject to a registration statement having been filed by the
Corporation and having been declared effective by the SEC under the
1933 Act or to an exemption being available under the 1933 Act in
connection with the issuance of shares resulting form the exercise
of such conversion right. If such exemption is not available as of
November 1, 2003, the Corporation will file, on a date not earlier
than November 1, 2003 and not later than December 1, 2003, such a
registration





---



##### 



- 50 -



| | statement with the SEC and will use reasonable commercial efforts
to be the SEC declare such registration statement effective.                                                                                                                                                                                                                                                                             
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 4.2.5                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | Each Second Preferred Voting Share may be exchanged for one Second
Preferred Non-Voting Share, at the option of the holder, at any
time upon the provision of an executed and completed Holder
Transaction Notice. Upon receipt by the Transfer Agent of any such
notice, the Corporation shall issue or cause to be issued a share
certificate representing fully-paid Second Preferred Non-Voting
Shares.
|
| | 4.2.6                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | The Second Preferred Voting Shares may be, or will be, as the case
may be, redeemed in the following circumstances:                                                                                                                                                                                                                                                                                        
|
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (b)                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (c)                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | (d)                                                                                                                                                                                                                                                                                                                                                                                                        





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##### 



- 51 -

|
|
|
|

| | Any redemption of Second Preferred Voting Shares pursuant to this
Section 4.2.6 shall be effected by way of a Corporation Transaction
Notice to such effect sent by the Corporation to each holder of
Second Preferred Voting Shares to be redeemed, provided that in the
case of a redemption under paragraph (a) above, the Corporation
Transaction Notice shall be sent at least fifteen (15) Business
Days before the date specified for redemption of Second Preferred
Voting Shares, during which period the holders thereof may, if they
so elect, exercise the conversion rights attached to such Second
Preferred Voting Shares pursuant to Section 4.2.4(b) by way of a
Holder Transaction Notice to such effect.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | So long as any Second Preferred Voting Shares remain outstanding,
on November 1st and May 1st of every year, starting on November
1st, 2003, the SPS Redemption Price shall be increased by an amount
equal to the SPS Accretion Amount and reduced by the amount of any
cash dividend that has been declared and paid in respect of such
semi-annual period.                                                                                                                                                                                                                                                                                                                                                              
|
| | In the event of any redemption or mandatory conversion of Second
Preferred Voting Shares other than as at the end of a semi-annual
period, the SPS Redemption Price of the Second Preferred Voting
Shares to be redeemed or converted shall be increased by an amount
equal to the SPS Accretion Amount, adjusted on a pro rata basis
with reference to the number of days from the beginning of the then
current semi-annual period to the date of such redemption or
conversion and reduced by the amount of any cash dividend that has
been declared and paid on such shares in respect of such period.                                                                                                                 
|

| | 4.3.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Second Preferred Voting 2 Shares
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------
|
| | 4.3.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Voting.                         
|
| | Subject to the restrictions contained in Section 5: (a) each Second
Preferred Voting 2 Share entitles the holder to receive notice of,
to attend and to exercise one vote (in person or by proxy) at any
meeting of the holders of Second Preferred Shares as a class and on
any meeting of holders of Second Preferred Voting 2 Shares as a
series; and (b) each holder of Second Preferred Voting 2 Shares
shall be entitled to vote together with the holders of the Class A
Restricted Shares, on an as converted basis on any matter on
which holders of Class A Restricted Voting Shares are entitled to
vote.
|
| | 4.3.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Liquidation Event.              
|
| | Upon any Liquidation Event, the holders of Second Preferred Voting
2 Shares shall be entitled to receive, pari passuwith the holders
of Second Preferred Non-Voting 2 Shares, Second Preferred Voting
Shares and Second Preferred Non-Voting Shares and in priority to
any other class of shares an amount per share equal to the SPS2
Redemption Price. In the event of an insufficiency of assets to                                                                                                                                                                                                                





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##### 



- 52 -

|    
|----
|    
|    
|    
|    
|    
|    
|    
|    
|    
|    
|4.4.
|    
|    
|    
|    
|    
|    
|    
|    





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##### 



- 53-



| | 4.4.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Liquidation Event.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | Upon any Liquidation Event, the holders of the Second Preferred
Non-Voting Shares shall be entitled to receive, pari passuwith the
holders of Second Preferred Voting Shares, Second Preferred Voting
2 Shares and Second Preferred Non-Voting 2 Shares, and in priority
to any payment or distribution in respect of shares of any other
series or class (other than the First Preferred Shares), an amount
per share equal to the SPS Redemption Price plus any declared but
unpaid dividends. In the event of an insufficiency of assets to
pay in full the amounts to which the holders of the Second
Preferred Non-Voting Shares are entitled upon a Liquidation Event,
holders of Second Preferred Voting Shares, Second Preferred
Non-Voting Shares, Second Preferred Voting 2 Shares and Second
Preferred Non-Voting 2 Shares shall participate rateably in any
distribution to the holders of Second Preferred Shares, on a per
share basis, in accordance with the amounts to which they are
respectively entitled upon such Liquidation Event.
|
| | 4.4.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  | Conversion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | The Second Preferred Non-Voting Shares shall have the following
conversion rights:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | each Second Preferred Non-Voting Share will be
convertible into one Class B Non-Voting Share at the option of
the holder at any time and upon the provision of a duly
executed and completed Holder Transaction Notice. If
applicable, upon receipt by the Transfer Agent of such notice
and share certificate or certificates, the Corporation shall
issue or cause to be issued a share certificate representing
fully-paid Class B Non-Voting Shares;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | subject to the Conversion Adjustment, if the
Corporation shall complete an offering of Class A Restricted
Voting Shares and/or Class B Non-Voting Shares for gross
proceeds of not less than $150,000,000 and at a per share
price equal to or greater than 200% of the current SPS
Redemption Price and the proceeds thereof are used as
described in Section 6 hereof, then the Second Preferred
Non-Voting Shares which remain outstanding after the
application of such proceeds may be converted, at the option
of the Corporation, at any time prior to the fifth anniversary
of the Effective Date, into Class B Non-Voting Shares, on a
share-for-share basis, by way of a Corporation Transaction
Notice to such effect; the Corporation Transaction Notice may
be given at any time after the completion of the offering of
Class A Restricted Voting Shares and/or Class B Non-Voting
Shares provided that the Corporation has applied the proceeds
thereof as described in Section 6 or has set aside the monies
for application as therein provided for;
|
| | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  | each Second Preferred Non-Voting Share will
automatically be converted into one Class B Non-Voting Share
if on the 25th day (or if such day is not                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   





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##### 



- 54 -



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | a trading day, then on the next following trading day) after
the date of the press release of the Corporation announcing
its quarterly or annual financial results, as the case may
be, at any time on or after the fifth anniversary of the
Effective Date, the Second Preferred Non-Voting Shares are
In-the-Money by way of a Corporation Transaction Notice to
such effect; and                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | under the circumstances described in subparagraph
4.4.6(b)(ii).                                                                                                                                                                                                                                                                                                                                                                                  
|
| | A holder of Second Preferred Non-Voting Shares shall not be
entitled to any payment on account of the FPS Redemption Price upon
exercise of any conversion right by such holder or by the
Corporation pursuant to this paragraph 4.4.4.                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | All conversion rights provided for in this paragraph 4.4.5 are
subject to a registration statement having been filed by the
Corporation and having been declared effective by the SEC under the
1933 Act or to an exemption being available under the 1933 Act in
connection with the issuance of shares resulting form the exercise
of such conversion right. If such exemption is not available as of
November 1, 2003, the Corporation will file, on a date not earlier
than November 1, 2003 and not later than December 1, 2003, such a
registration statement with the SEC and will use reasonable
commercial efforts to be the SEC declare such registration
statement effective.
|
| | 4.4.5                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Exchange                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | Each Second Preferred Non-Voting Share may be or will be, as the
case may be, exchangeable for one Second Preferred Voting Share,
subject to the provisions of Section 7, if:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | at the option of the holder exercisable at any
time and from time to time by giving a Holder Transaction
Notice accompanied by a Residency Declaration whereby such
holder attests that it is Canadian. Upon receipt by the
Transfer Agent of such notice and, if applicable, Residency
Declaration, the Corporation shall issue or cause to be issued
a share certificate representing fully-paid Second Preferred
Voting Shares;               
|
| | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | automatically, if and to the extent that the
Canadian Ownership and Control Provisions are amended or
repealed such that persons in the Constrained Class are
permitted to hold Second Preferred Voting Shares without
resulting in a contravention of the Canadian Ownership and
Control Provisions provided no exchange hereunder shall occur
until at least 1% of the then outstanding Second Preferred
Non-Voting Shares can be exchanged; or
|
| | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  | any of the circumstances described in paragraph
4.4.7 hereof should occur, but only in the manner set out
therein.                                                                                                                                                                                                                                                                                                                               





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##### 



- 55 -



| | Notwithstanding Section 4.4.5(a), Non-Canadian Secured Creditors
may exchange, by way of a Holder Transaction Notice to such effect,
in the aggregate, each on a pro rata basis, either (i) up to 30,000
First Preferred Non-Voting Shares to 30,000 First Preferred Voting
Shares, (ii) 30,000 Second Preferred Non-Voting Shares to 30,000
Second Preferred Voting Shares or (iii) a combination of the above
not exceeding 30,000 shares, provided that such conversion would
not contravene the Canadian Ownership and Control Provisions.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 4.4.6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | The Second Preferred Non-Voting Shares may be, or will be, as the
case may be, redeemed in the following circumstances:                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           





---



##### 



- 56 -



| | Any redemption of Second Preferred Non-Voting Shares pursuant to
this Section 4.4.6 shall be effected by way of a Corporation
Transaction Notice to such effect sent by the Corporation to each
holder of Second Preferred Non-Voting Shares to be redeemed,
provided that in the case of a redemption under paragraph (a)
above, the Corporation Transaction Notice shall be sent at least
fifteen (15) Business Days before the date specified for redemption
of Second Preferred Non-Voting Shares, during which period the
holders thereof may, if they so elect, exercise the conversion
rights attached to such Second Preferred Non-Voting Shares pursuant
to Section 4.4.4(a) by way of a Holder Transaction Notice to such
effect.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | So long as Second Preferred Non-voting Shares remain outstanding,
on November 1st and May 1st of every year, starting on November
1st, 2003, the SPS Redemption Price shall be increased by an amount
equal to the SPS Accretion Amount and reduced by the amount of any
cash dividend that has been declared and paid in respect of such
semi-annual period.                                                                                                                                                                                                                                                                                                                                                                              
|
| | In the event of any redemption or mandatory conversion of Second
Preferred Non-Voting Shares other than as at the end of a
semi-annual period, the SPS Redemption Price of the Second
Preferred Non-Voting Shares to be redeemed or converted shall be
increased by an amount equal to the FPS Accretion Amount, adjusted
on a pro rata basis with reference to the number of days from the
beginning of the then current semi-annual period to the date of
such redemption or conversion and reduced by the amount of any cash
dividend that has been declared and paid on such shares in respect
of such period.                                                                                                                         
|
| | 4.4.7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | Conversion Period means the period of time commencing on the
eighth day after the Offer Date and terminating on the Expiry Date
;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| | Converted Shares means Second Preferred Voting Shares resulting
from the conversion of Second Preferred Non-Voting Shares into
Second Preferred Voting Shares pursuant to paragraph (b) hereof;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| | Exclusionary Offer means an offer to purchase Second Preferred
Voting Shares that:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|

| | (i) |  | must, by reason of applicable
securities legislation or the requirements of the TSX or
the requirements of the Act, be made to all or
substantially all holders of Second Preferred Voting
Shares who are in a province of Canada to which the
requirements apply; and
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



- 57 -



| | (ii) |  | is not made concurrently with an
offer to purchase Second Preferred Non-Voting Shares
that is identical to the offer to purchase Second
Preferred Voting Shares in terms of price per share and
percentage of outstanding shares to be taken up
exclusive of shares owned immediately prior to the offer
by the Offeror , and in all other material respects
(except with respect to the conditions that may be
attached to the offer for Second Preferred Voting
Shares), and that has no condition attached thereto
other than the right not to take up and pay for Second
Preferred Non-Voting Shares tendered if no Second
Preferred Voting Shares are purchased pursuant to the
offer for Second Preferred Voting Shares;
| | ---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | for the purposes of this definition, if an offer to purchase Second
Preferred Voting Shares would be an Exclusionary Offer but for the
provisions of clause (ii), the varying of any term of such offer
shall be deemed to constitute the making of a new offer unless an
identical variation concurrently is made to the corresponding offer
to purchase Second Preferred Non-Voting Shares;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | Expiry Date means the last date upon which holders of Second
Preferred Voting Shares may accept an Exclusionary Offer;                                                                                                                                                                                                                                                                     
|
| | Offer Date means the date on which an Exclusionary Offer is made;                                                                                                                                                                                                                                                                                                                          
|
| | Offeror means a person that makes an offer to purchase Second
Preferred Voting Shares (the bidder), and includes any associate
or affiliate of the bidder or any person that is acting jointly or
in concert with the bidder (whether or not disclosed in the
offering document relating to such offer); and                                                                             
|
| | (b)                                                                                                                                                                                                                                                                                                                                                                                          





---



##### 



- 58 -



| |     |  | the number of Second Preferred Non-Voting Shares represented
by the original share certificate which are not to be
converted.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (c) |  | Notwithstanding the conversion rights provided
for under paragraph (b) above, no holder of Second Preferred
Non-Voting Shares shall be entitled to exercise such
conversion right if the Offeror under any Exclusionary Offer
is acting in concert with such holder, is an associate or an
affiliate of such holder or if under any applicable securities
laws the shares of such holder and the Offeror are deemed to
be held by the same person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | (d) |  | An election by a holder of Second Preferred
Non-Voting Shares to exercise the conversion right provided
for in paragraph (b) shall be deemed to also constitute
irrevocable elections by such holder (i) to deposit the
Converted Shares in acceptance of the Exclusionary Offer
(subject to such holders rights to subsequently withdraw such
Converted Shares from the Exclusionary Offer in accordance
with the terms thereof and applicable law); and (ii) to
exercise the right to convert into Second Preferred Non-Voting
Shares all Converted Shares in respect of which such holder
exercises his or her right of withdrawal from the Exclusionary
Offer or which are not otherwise ultimately taken up and paid
for under the Exclusionary Offer. Any conversion of Converted
Shares into Second Preferred Non-Voting Shares pursuant to
such deemed election in respect of which the holder exercises
his or her right of withdrawal from the Exclusionary Offer
shall become effective at the time such right of withdrawal is
exercised. If the right of withdrawal is not exercised, any
conversion into Second Preferred Non-Voting Shares pursuant to
such deemed election shall become effective as follows:
|

| | (i)  |  | in respect of an Exclusionary Offer
which is completed, any shares which are not otherwise
ultimately taken up and paid for under the Exclusionary
Offer, immediately following the time by which the
Offeror is required under applicable securities
legislation to take up and pay for all shares to be
acquired by the Offeror under the Exclusionary Offer;
and
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | in respect of an Exclusionary Offer
which is abandoned or withdrawn, at the time at which
the Exclusionary Offer is abandoned or withdrawn.                                                                                                                                                                                                                        
|

| | (e) |  | No share certificates representing Converted
Shares shall be delivered to or to the order of the holders of
such shares before such shares are deposited pursuant to the
Exclusionary Offer; the Transfer Agent, on behalf of the
holders of the Converted Shares, shall deposit pursuant to the
Exclusionary Offer a certificate or certificates representing
the Converted Shares. Upon completion of the Exclusionary
Offer, the Transfer Agent shall deliver or cause to be
delivered to the holders entitled thereto all consideration
paid by the Offeror pursuant to the Exclusionary Offer in
respect of the Converted Shares. If Converted
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



- 59 -



| |     |  | Shares are converted into Second Preferred Non-Voting Shares
in accordance with the deemed election in paragraph (d), the
Transfer Agent shall deliver to the holders entitled thereto
a share certificate representing the Second Preferred
Non-Voting Shares resulting from the conversion. The
Corporation shall make all arrangements with the Transfer
Agent necessary or desirable to give effect to this paragraph
(e).
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (f) |  | Subject to paragraph (g) hereof, the conversion
right provided for in paragraph (b) hereof shall not come into
effect if:                                                                                                                                                                                                                                                                                                     
|

| | (i) |  | prior to the time at which the
Exclusionary Offer is made there is delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate, as at the time the Exclusionary Offer is
made, more than 50% of the then outstanding Second
Preferred Voting Shares, exclusive of shares owned
immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder, that such
shareholder shall not:
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | (A) |  | tender any shares in
acceptance of the Exclusionary Offer without
giving the Transfer Agent and the Secretary of the
Corporation written notice of such acceptance or
intended acceptance at least seven days prior to
the Expiry Date;                                                                                                                                                                                                                                                              
| | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (B) |  | make any Exclusionary
Offer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| | (C) |  | act jointly or in concert
with any person or company that makes any
Exclusionary Offer; or                                                                                                                                                                                                                                                                                                                                                                                                           
|
| | (D) |  | transfer any Second
Preferred Voting Share, directly or indirectly,
during the time at which any Exclusionary Offer is
outstanding without giving the Transfer Agent and
the Secretary of the Corporation written notice of
such transfer or intended transfer at least seven
days prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of Second Preferred
Voting Shares transferred or to be transferred to
each transferee;
|

| | or   |  |                                                                                                                                                                                                                                                                                                                      
| | ---- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | as of the end of the seventh day
after the Offer Date there has been delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate more than 50% of the then outstanding
Second





---



##### 



- 60 -



| | Preferred Voting Shares, exclusive of shares owned
immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder:
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (A)                                                                                                                                                                                                  
|
| | (B)                                                                                                                                                                                                  
|
| | (C)                                                                                                                                                                                                  
|
| | (D)                                                                                                                                                                                                  
|

|    | or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|    | (iii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | as of the end of the seventh day
after the Offer Date a combination of certificates that
comply with either clause (i) or (ii) from shareholders
of the Corporation owning in the aggregate more than 50%
of the then outstanding Second Preferred Voting Shares,
exclusive of shares owned immediately prior, to the
Exclusionary Offer Date by the Offeror, has been
delivered to the Transfer Agent and to the Secretary of
the Corporation.
|   
|(g) | If a notice referred to in sub-clause
4.4.7(f)(i)(A) or (D) or 4.4.7(f)(ii)(C) or (D) hereof is
given and the conversion right provided for in paragraph (b)
hereof has not come into effect, the Transfer Agent shall
either forthwith upon receipt of the notice or forthwith after
the seventh day following the Offer Date, whichever is later,
determine the number of Second Preferred Voting Shares in
respect of which there are subsisting certificates that comply
with either clause (f)(i) or (f)(ii) hereof. For the purpose
of this determination, certificates in respect of which such a
notice has been filed shall not be regarded as subsisting
insofar as the Second Preferred Voting Shares to which the
notice relates are concerned; the transfer that is the





---



##### 



- 61 -



| |     |  | subject of any notice referred to in sub-clause (f)(i)(D) or
(f)(ii)(D) hereof shall be deemed to have already taken place
at the time of the determination; and the transferee in the
case of any notice referred to in sub-clause (f)(i)(D) or
(f)(ii)(D) hereof shall be deemed to be a person or company
from whom the Transfer Agent does not have a subsisting
certificate unless the Transfer Agent is advised of the
identity of the transferee, either by such notice or by the
transferee in writing, and such transferee is a person or
company from who the Transfer Agent has a subsisting
certificate. If the number of Second Preferred Voting Shares
so determined does not exceed 80% of the number of then
outstanding Second Preferred Voting Shares, exclusive of
shares owned immediately prior to the offer by the Offeror,
paragraph (f) hereof shall cease to apply and the conversion
right provided for in paragraph (b) hereof shall be in effect
for the remainder of the Conversion Period.
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (h) |  | As soon as reasonably possible after the seventh
day after the Offer Date, the Corporation shall send to each
holder of Second Preferred Non-Voting Shares a notice advising
the holders as to whether they are entitled to convert their
Second Preferred Non-Voting Shares into Second Preferred
Voting Shares and the reasons therefor. If such notice
discloses that they are not so entitled but it is subsequently
determined that they are so entitled by virtue of paragraph
(g) above or otherwise, the Corporation shall forthwith send
another notice to them advising them of that fact and the
reasons therefor. Failure to send such notice will not
adversely affect the rights of the holders of Second Preferred
Non-Voting Shares hereunder.                                                                                                                                                                                                                                                          
|
| | (i) |  | If a notice referred to in paragraph (h) above
discloses that the conversion right has come into effect, the
notice shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|

| | (A) |  | include a description of
the procedure to be followed to effect the
conversion and to have the Converted Shares
tendered under the offer;                                                                                                                                                                                                                                                                                                                       
| | --- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (B) |  | include the information
set out in paragraph (d) hereof; and                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | (C) |  | be accompanied by a copy
of the Exclusionary Offer and all other material
sent to holders of Second Preferred Voting Shares
in respect of such offer, and as soon as
reasonably possible after any additional material,
including any notice of variation, is sent to the
holders of Second Preferred Voting Shares in
respect of the offer, the Corporation shall send a
copy of such additional material to each holder of
Second Preferred Non-Voting Shares.





---



##### 



- 62 -



|     | (j)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Forthwith after sending any notice referred to in
paragraph (h) above, the Corporation shall cause a press
release to be issued to a Canadian national news-wire service,
describing the contents of the notice.                                                                                                                                                                                                                                 
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    
|     | (k)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Notwithstanding the provisions of the Act, in the
event that any Converted Shares are reconverted into Second
Preferred Non-Voting Shares pursuant to the provisions of
paragraph (d) above, the stated capital account in respect of
such Second Preferred Non-Voting Shares shall be increased by
the amount by which the stated capital account maintained for
such shares was reduced by the conversion of such shares into
Converted Shares.
|    
|4.5. | Second Preferred Non-Voting 2 Shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|    
|     | 4.5.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Voting.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    
|     | The holders of the Second Preferred Non-Voting 2 Shares shall be
entitled to receive notice of and to attend any meeting of
shareholders at which the holders of Second Preferred Voting Shares
are entitled to vote. Notwithstanding the foregoing, the Second
Preferred Non-Voting 2 Shares shall not entitle the holders thereof
to any voting rights either to vote at any meeting of the
shareholders of the Corporation or to sign a resolution in writing,
except as otherwise expressly provided in these Articles and in the
Act and subject to the restrictions contained in Section 5.                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|     | 4.5.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Liquidation Event.                                                                                                                                                                                                                                                                                                                                                                                                                               
|    
|     | Upon any Liquidation Event, the holders of the Second Preferred
Non-Voting 2 Shares shall be entitled to receive, pari passuwith
the holders of Second Preferred Voting 2 Shares, Second Preferred
Voting Shares and Second Preferred Non-Voting Shares, in priority
to any payment or distribution in respect of any other class or
series of shares (other than First Preferred Shares), an amount per
share equal to the SPS2 Redemption Price. In the event of an
insufficiency of assets to pay in full the amounts to which the
holders of the Second Non-Voting 2 Shares are entitled upon a
Liquidation Event, holders of Second Preferred Voting 2 Shares,
Second Preferred Non-Voting 2 Shares, Second Preferred Voting
Shares and Second Preferred Non-Voting Shares shall participate
rateably in such distribution to the holders of Second Preferred
Shares, on a per share basis, in accordance with the amounts to
which they are respectively entitled upon such Liquidation Event.
|    
|     | 4.5.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Exchange.                                                                                                                                                                                                                                                                                                                                                                                                                                        
|    
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  | Each Second Preferred Non-Voting 2 Share may be
or will be, as the case may be, exchanged for one Second
Preferred Voting 2 Share, subject always to the provisions of
Section 7, if:                                                                                                                                                                                                                                                            





---



##### 



- 63 -



| | (i)   |  | at the option of the holder
exercisable at any time and from time to time by giving
a Holder Transaction Notice accompanied by a Residency
Declaration whereby such holder attests that it is
Canadian. Upon receipt by the Transfer Agent of such
notice and, if applicable, Residency Declaration, the
Corporation shall issue or cause to be issued a
certificate or certificates representing Second Voting
Units;                               
| | ----- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii)  |  | automatically, if and to the extent
that the Canadian Ownership and Control Provisions are
amended or repealed such that persons in the Constrained
Class are permitted to hold Second Preferred Voting 2
Shares without resulting in a contravention of the
Canadian Ownership and Control Provisions provided no
exchange hereunder shall occur until at least 1% of the
then outstanding Second Preferred Non-Voting 2 Shares
can be exchanged; or
|
| | (iii) |  | any of the circumstances described
in paragraph 4.5.4 hereof should occur, but only in the
manner set out therein.                                                                                                                                                                                                                                                                                                                                   
|

| | 4.5.4 |  | Coattails.                                                                                                                                                     
| | ----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (a)   |  | In this paragraph 4.5.4, the following terms
shall have the following meanings:                                                                                
|
| |       |  | Conversion Period means the period of time commencing on
the eighth day after the Offer Date and terminating on the
Expiry Date ;                            
|
| |       |  | Converted Units means Second Voting Units resulting from
the conversion of Second Non-Voting Units into Second Voting
Units pursuant to paragraph (b) hereof;
|
| |       |  | Exclusionary Offer means an offer to purchase Second Voting
Units that:                                                                                      
|

| | (i)  |  | must, by reason of applicable
securities legislation or the requirements of the TSX or
the requirements of the Act, be made to all or
substantially all holders of Second Voting Units who are
in a province of Canada to which the requirements apply;
and                                                                                                                                                                                                                                                                 
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | is not made concurrently with an
offer to purchase Second Non-Voting Units that is
identical to the offer to purchase Second Voting Units
in terms of price per share and percentage of
outstanding shares to be taken up exclusive of shares
owned immediately prior to the offer by the Offeror ,
and in all other material respects (except with respect
to the conditions that may be attached to the offer for
Second Voting Units), and that has no condition attached
thereto other than the right not to take up and





---



##### 



- 64 -



|
|
|
|

| |     |  | for the purposes of this definition, if an offer to purchase
Second Voting Units would be an Exclusionary Offer but for
the provisions of clause (ii), the varying of any term of
such offer shall be deemed to constitute the making of a new
offer unless an identical variation concurrently is made to
the corresponding offer to purchase Second Non-Voting Units;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |     |  | Expiry Date means the last date upon which holders of
Second Voting Units may accept an Exclusionary Offer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |     |  | Offer Date means the date on which an Exclusionary Offer is
made;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |     |  | Offeror means a person that makes an offer to purchase
Second Voting Units (the bidder), and includes any
associate or affiliate of the bidder or any person that is
acting jointly or in concert with the bidder (whether or not
disclosed in the offering document relating to such offer);
and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | (b) |  | Subject to paragraph (f) hereof, if an
Exclusionary Offer is made, each outstanding Second Preferred
Non-Voting 2 Share shall be convertible into one fully paid
Second Preferred Voting 2 Share at the option of the holder
thereof exercisable by giving a Holder Transaction Notice at
any time during the Conversion Period accompanied by: (a) the
share certificate or certificates representing the Second
Non-Voting Units which the holder desires to convert; and (b)
the letters of transmittal, directions, transfers, powers of
attorney and other documentation duly executed by his or her
attorney duly authorized in writing as is specified by the
Transfer Agent for the Second Voting Units, acting reasonably,
as being required to give full effect to the reconversion into
Second Non-Voting Units of the Converted Units as contemplated
by paragraphs (d) and (e). Upon receipt by the Transfer Agent
of such notice and share certificate or certificates, the
Corporation shall issue or cause to be issued a share
certificate representing fully-paid Second Voting Units as
prescribed above and in accordance with paragraph (e). If
less than all of the Second Preferred Non-Voting Shares
represented by any share certificate are to be converted, the
holder shall be entitled to receive a new share certificate
representing in the aggregate the number of Second Non-Voting
Units represented by the original share certificate which are
not to be converted.
|
| | (c) |  | Notwithstanding the conversion rights provided
for under paragraph (b) above, no holder of Second Preferred
Non-Voting Shares shall be entitled to exercise such
conversion right if the Offeror under any Exclusionary Offer
is acting in concert with such holder, is an associate or an
affiliate of such holder or if under any applicable securities
laws the shares of such holder and the Offeror are deemed to
be held by the same person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     





---



##### 



- 65 -



| | (d) |  | An election by a holder of Second Non-Voting
Units to exercise the conversion right provided for in
paragraph (b) shall be deemed to also constitute irrevocable
elections by such holder (i) to deposit the Converted Units
pursuant to the Exclusionary Offer (subject to such holders
rights to subsequently withdraw such Converted Units from the
Exclusionary Offer in accordance with the terms thereof and
applicable law); and (ii) to exercise the right to convert
into Second Non-Voting Units all Converted Units in respect of
which such holder exercises his or her right of withdrawal
from the Exclusionary Offer or which are not otherwise
ultimately taken up and paid for under the Exclusionary Offer.
Any conversion of Converted Units into Second Non-Voting
Units pursuant to such deemed election in respect of which the
holder exercises his or her right of withdrawal from the
Exclusionary Offer shall become effective at the time such
right of withdrawal is exercised. If the right of withdrawal
is not exercised, any conversion into Second Non-Voting Units
pursuant to such deemed election shall become effective as
follows:
| | --- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | (i)  |  | in respect of an Exclusionary Offer
which is completed, any shares which are not otherwise
ultimately taken up and paid for under the Exclusionary
Offer, immediately following the time by which the
Offeror is required under applicable securities
legislation to take up and pay for all shares to be
acquired by the Offeror under the Exclusionary Offer;
and
| | ---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii) |  | in respect of an Exclusionary Offer
which is abandoned or withdrawn, at the time at which
the Exclusionary Offer is abandoned or withdrawn.                                                                                                                                                                                                                        
|

| | (e) |  | No share certificates representing Converted
Units shall be delivered to or to the order of the holders of
such shares before such shares are deposited in acceptance of
the Exclusionary Offer; the Transfer Agent, on behalf of the
holders of the Converted Units, shall deposit pursuant to the
Exclusionary Offer a certificate or certificates representing
the Converted Units. Upon completion of the Exclusionary
Offer, the Transfer Agent shall deliver or cause to be
delivered to the holders entitled thereto all consideration
paid by the Offeror pursuant to the Exclusionary Offer in
respect of the Converted Units. If Converted Units are
converted into Second Non-Voting Units in accordance with the
deemed election in paragraph (d), the Transfer Agent shall
deliver to the holders entitled thereto a share certificate
representing the Second Non-Voting Units resulting from the
conversion. The Corporation shall make all arrangements with
the Transfer Agent necessary or desirable to give effect to
this paragraph (e).
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (f) |  | Subject to paragraph (g) hereof, the conversion
right provided for in paragraph (b) hereof shall not come into
effect if:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   





---



##### 



- 66 -



| | (i) |  | prior to the time at which the
Exclusionary Offer is made there is delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate, as at the time the Exclusionary Offer is
made, more than 50% of the then outstanding Second
Voting Units, exclusive of shares owned immediately
prior to the Exclusionary Offer by the Offeror, which
certificate or certificates shall confirm, in the case
of each such shareholder, that such shareholder shall

not:
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | (A) |  | tender any shares in
acceptance of the Exclusionary Offer without
giving the Transfer Agent and the Secretary of the
Corporation written notice of such acceptance or
intended acceptance at least seven days prior to
the Expiry Date;                                                                                                                                                                                                                                                     
| | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (B) |  | make any Exclusionary
Offer;                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| | (C) |  | act jointly or in concert
with any person or company that makes any
Exclusionary Offer; or                                                                                                                                                                                                                                                                                                                                                                                                  
|
| | (D) |  | transfer any Second
Preferred Voting 2 Share, directly or indirectly,
during the time at which any Exclusionary Offer is
outstanding without giving the Transfer Agent and
the Secretary of the Corporation written notice of
such transfer or intended transfer at least seven
days prior to the Expiry Date, which notice shall
state, if known to the transferor, the names of
the transferees and the number of Second Voting
Units transferred or to be transferred to each
transferee;
|

| | or |  | 
| | -- |  | 
|

| | (ii) |  | as of the end of the seventh day
after the Offer Date there has been delivered to the
Transfer Agent and to the Secretary of the Corporation a
certificate or certificates signed by or on behalf of
one or more shareholders of the Corporation owning in
the aggregate more than 50% of the then outstanding
Second Voting Units, exclusive of shares owned
immediately prior to the Exclusionary Offer by the
Offeror, which certificate or certificates shall
confirm, in the case of each such shareholder:
| | ---- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|

| | (A) |  | the number of Second
Voting Units owned by the shareholder;                                                                                                                      
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (B) |  | that such shareholder is
not making the Exclusionary Offer and is not an
associate or affiliate of, or acting jointly or in
concert with, the person or company making the
offer;





---



##### 



- 67 -



|
|
|
|
|
|

| | or    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (iii) |  | as of the end of the seventh day
after the Offer Date a combination of certificates that
comply with either clause (i) or (ii) from shareholders
of the Corporation owning in the aggregate more than 50%
of the then outstanding Second Voting Units, exclusive
of shares owned immediately prior, to the Exclusionary
Offer Date by the Offeror, has been delivered to the
Transfer Agent and to the Secretary of the Corporation.
|

| | (g) |  | If a notice referred to in sub-clause
4.5.4(f)(i)(A) or (D) or 4.5.4(f)(ii)(C) or (D) hereof is
given and the conversion right provided for in paragraph (d)
hereof has not come into effect, the Transfer Agent shall
either forthwith upon receipt of the notice or forthwith after
the seventh day following the Offer Date, whichever is later,
determine the number of Second Voting Units in respect of
which there are subsisting certificates that comply with
either clause (f)(i) or (f)(ii) hereof. For the purpose of
this determination, certificates in respect of which such a
notice has been filed shall not be regarded as subsisting
insofar as the Second Voting Units to which the notice relates
are concerned; the transfer that is the subject of any notice
referred to in sub-clause (f)(i)(D) or (f)(ii)(D) hereof shall
be deemed to have already taken place at the time of the
determination; and the transferee in the case of any notice
referred to in sub-clause (f)(i)(D) or (f)(ii)(D) hereof shall
be deemed to be a person or company from whom the Transfer
Agent does not have a subsisting certificate unless the
Transfer Agent is advised of the identity of the transferee,
either by such notice or by the transferee in writing, and
such transferee is a person or company from who the Transfer
Agent has a subsisting certificate. If the number of Second
Voting Units so determined does not exceed 50% of the number
of then outstanding Second Voting Units, exclusive of shares
owned immediately prior to the offer by the Offeror, paragraph
(f) hereof
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



- 68 -



| |     |  | shall cease to apply and the conversion right provided for in
paragraph (b) hereof shall be in effect for the remainder of
the Conversion Period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (h) |  | As soon as reasonably possible after the seventh
day after the Offer Date, the Corporation shall send to each
holder of Second Non-Voting Units a notice advising the
holders as to whether they are entitled to convert their
Second Non-Voting Units into Second Voting Units and the
reasons therefor. If such notice discloses that they are not
so entitled but it is subsequently determined that they are so
entitled by virtue of paragraph (g) or otherwise, the
Corporation shall forthwith send another notice to them
advising them of that fact and the reasons therefor. Failure
to send such notice will not adversely affect the rights of
the holders of Second Non-Voting Units hereunder.
|
| | (i) |  | If a notice referred to in subparagraph (h)
discloses that the conversion right has come into effect, the
notice shall:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|

| | (i)   |  | include a description of the
procedure to be followed to effect the conversion and to
have the Converted Units tendered under the offer;                                                                                                                                                                                                                                                                                       
| | ----- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (ii)  |  | include the information set out in
paragraph (d) hereof; and                                                                                                                                                                                                                                                                                                                                                                   
|
| | (iii) |  | be accompanied by a copy of the
Exclusionary Offer and all other material sent to
holders of Second Voting Units in respect of such offer,
and as soon as reasonably possible after any additional
material, including any notice of variation, is sent to
the holders of Second Voting Units in respect of the
offer, the Corporation shall send a copy of such
additional material to each holder of Second Non-Voting
Units.
|

| | (j)                                                                                                                                                                                                                                                                                                                  |  | Forthwith after sending any notice referred to in
paragraph (h), the Corporation shall cause a press release to
be issued to a Canadian national news-wire service, describing
the contents of the notice.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | 4.5.5                                                                                                                                                                                                                                                                                                                |  | Redemption.                                                                                                                                                                                               
|
| | Each Second Preferred Non-Voting 2 Shares will be automatically
redeemed at the SPS2 Redemption Price upon the repayment or
conversion of the Second Note to which it is attached to form a
Second Unit. The Second Preferred Non-Voting 2 Shares shall not
be redeemable except as set forth in this Section 4.5.5.
|
| | 4.5.6                                                                                                                                                                                                                                                                                                                |  | Dividends.                                                                                                                                                                                                
|
| | The holders of Second Preferred Non-Voting 2 Shares shall not be
established to receive any dividends thereon.                                                                                                                                                                                                      





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##### 



- 69 -



| | 4.6.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  | Certain Adjustments.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------
|
| | If the Corporation shall subdivide the Class A Restricted Voting Shares
or Class B Non-Voting Shares into a greater number of shares or shall
issue in exchange for the Class A Restricted Voting Shares or Class B
Non-Voting Shares a greater number of Class A Restricted Voting Shares or
Class B Non-Voting Shares then in such case from and after the effective
date of such subdivision or exchange of shares the conversion or
redemption rate for the Second Preferred Shares shall be increased in
proportion to the increase in the number of outstanding Class A
Restricted Voting Shares or Class B Non-Voting Shares resulting from such
subdivision or exchange; and if the Corporation shall reduce the number
of Class A Restricted Voting Shares or Class B Non-Voting Shares by
combination or consolidation of shares or shall issue in exchange for the
outstanding Class A Restricted Voting Shares or Class B Non-Voting Shares
a smaller number of Class A Restricted Voting Shares or Class B
Non-Voting Shares then in each case from and after the effective date of
such combination, consolidation or exchange of shares the conversion or
redemption rate for the Second Preferred Shares shall be decreased in
proportion to the decrease in the number of the outstanding Class A
Restricted Voting Shares or Class B Non-Voting Shares resulting from such
combination, consolidation or exchange of shares. In the event of any
Fundamental Transaction and from and after the effective date of each
such Fundamental Transaction, the conversion or redemption rate for the
Second Preferred Shares shall be adjusted in proportion to the adjustment
in the number of the outstanding Class A Restricted Voting Shares or
Class B Non-Voting Shares resulting from such Fundamental Transaction or,
if applicable, the conversion or redemption rate of the Second Preferred
Shares shall be adjusted so as to provide for a conversion or redemption
into the shares or securities entitled to be received by holders of Class
A Restricted Voting Shares or Class B Non-Voting Shares pursuant to the
Fundamental Transaction.
|
| | The Corporation shall not subdivide any series of Second Preferred Shares
into a greater number of shares or issue in exchange for any series of
Second Preferred Shares a greater number of Second Preferred Shares
without, concurrently therewith, effecting a subdivision or exchange of
all Second Preferred Shares and all First Preferred Shares in the same
proportion; and the Corporation shall not reduce the number of any series
of Second Preferred Shares by combination or consolidation of shares or
issue in exchange for any series of Second Preferred Shares a smaller
number of Second Preferred Shares without effecting concurrently
therewith a combination, consolidation or exchange of shares of all
Second Preferred Shares and all First Preferred Shares in the same
proportion.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| | The Corporation shall not issue fractional shares in satisfaction of the
conversion or redemption rights herein provided for. Where the exercise
of conversion or redemption rights would otherwise result in fractional
shares being issued, the number of shares to be issued by the Corporation
shall be rounded down to the nearest whole number of shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       



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##### 



-70 -



| | 5. |  | CORPORATE STABILITY PROVISIONS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |    |  | Until the second anniversary of the Effective Date (except if varied or
waived by a special resolution of holders of all Voting Shares and
Non-Voting Shares (and all First Units and Second Units, if any are
outstanding), in each case voting on an as converted basis (if
applicable), and as a single class, in person or by proxy at a meeting
called for such purpose and, for greater certainty, at which the voting
limitations provided for herein shall be applicable), no person or
company, acting alone or acting jointly or in concert with any other
person or company with respect to the acquisition, disposition or voting
of securities of the Corporation, shall be permitted to exercise on any
resolution submitted to a vote of holders of securities, voting rights
representing in excess of 20% of the aggregate voting rights exercisable
with respect to the particular resolution, provided that the 20%
limitation contained in this Section 5 shall not apply to any holder of
securities of the Corporation acting alone who, (i) if the Effective Date
had occurred on December 9, 2002, would have held, on such date,
securities of the Corporation which would have entitled it to exercise in
excess of 20% of such aggregate voting rights and (ii) would not, at any
time between December 9, 2002 and the Effective Date, have been entitled
to exercise less than 20% of such aggregate voting rights assuming that
the Effective Date occurred at any time during such period (such holder
being referred to as a Grandfathered Holder).
|
| |    |  | A Grandfathered Holder shall be entitled to exercise on any resolution
submitted to a vote of holders of securities on which the Grandfathered
Holder is entitled to vote, such voting rights as would have been
attached to securities of the Corporation that would have been held by
such Grandfathered Holder if the Effective Date had occurred on December
9, 2002, provided that the Grandfathered Holder holds, on the record date
for the particular meeting, securities that entitle it to exercise more
than 20% of the aggregate voting rights at such meeting but for this
Section 5 and subject in all cases to the Canadian Ownership and Control
Provisions. In the event of any dispute arising as to whether a
particular holder of securities is a Grandfathered Holder entitled to the
benefit of this paragraph, the decision of the chairman of the meeting
acting in good faith shall be final and binding upon such holder. The
burden of proof to establish that any particular holder of securities is
a Grandfathered Holder and continues to be entitled to the benefit of
this paragraph shall rest upon such holder.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |    |  | The 20% limitation contained in this Section 5 shall not apply to any
person or company that makes an offer to acquire all the First
Instruments, Second Instruments, Class A Restricted Voting Shares and
Class B Non-Voting Shares and acquires such number of First Instruments,
Second Instruments, Class A Restricted Voting Shares and Class B
Non-Voting Shares so as to hold thereafter at least 66-2/3% of the equity
securities of the Corporation on a fully-diluted basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|
| | 6. |  | MANDATORY PAYMENTS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |    |  | Subject to applicable law and to the maintenance of a minimum
consolidated cash balance (which shall include all cash, cash equivalent
and short-term investments) of at least $45,000,000, prior to the
Corporations 25% share of any Excess Cash Flow, the                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          





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##### 



-71-



| |  |  | Corporation shall cause the Mandatory Payments to be made from the
following amounts:
| |  |  | -------------------------------------------------------------------------------------

| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | --- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (A) |  | if, at the end of any
fiscal year, the Corporation has a consolidated
cash balance (which, for greater certainty,
includes all cash, cash equivalents and short-term
investments) of at least $45,000,000 (prior to the
Corporations 25% share of any Excess Cash Flow)
and if the Reference Entities have generated
Excess Cash Flow during such fiscal year, then an
amount equal to 75% of the Excess Cash Flow
generated in such fiscal year;
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | (B) |  | an amount equal to any
Net Proceeds in excess of $2,000,000 in the
aggregate in any fiscal year received from an
Asset Disposition and any other Asset Disposition
which generated Net Proceeds during such fiscal
year; and                                                                                                                                                                                                                      
| |  |     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |  | (C) |  | an amount equal to 75% of
any Net Proceeds from the issuance of Equity
Securities other than an issuance of Equity
Securities by one Reference Entity to another
Reference Entity, including any proceeds from the
exercise of any of the Warrants;                                                                                                                                                                                               



| |  |  | provided that:
| |  |  | --------------

| |  |     |  |                                                                                                                                                                                                                                                                        
| |  | --- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (D) |  | any payment on account of
paragraph (A) above from Excess Cash Flow
generated during a fiscal year shall be made on or
before March 31st of the immediately following
fiscal year;                                                                                     
| |  |     |  |                                                                                                                                                                                                                                                                        
| |  | (E) |  | any payment on account of
paragraph (B) above from any Net Proceeds of any
Asset Disposition shall be made within five (5)
Business Days following the receipt of the Net
Proceeds of such Asset Disposition;                                                          
| |  |     |  |                                                                                                                                                                                                                                                                        
| |  | (F) |  | any payment on account of
paragraph (C) above from any Net Proceeds of any
sale or issuance of Equity Securities by a
Reference Entity shall be made within five (5)
Business Days following the receipt of the
proceeds of such sale or issuance of Equity
Securities.

For the purposes hereof:



| | (a) |  | Mandatory Payments shall mean the following
payments, applied sequentially and in the following priority:
| | --- |  | -----------------------------------------------------------------------------------------------------------

|    |  |                                                                                                                           
|--- |  | --------------------------------------------------------------------------------------------------------------------------
|(i) |  | first, subject to paragraph (b)
below, to the permanent rateable prepayment of the
principal amounts outstanding under the





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##### 



- 72 -

| |  |                                                                                                                           
| |  | --------------------------------------------------------------------------------------------------------------------------
| |  | Tranche B Debt , up to a maximum aggregate amount equal
to 25% of the original principal amounts under the
Tranche B Debt;

|       |  |                                                                                                                                                                                                                                                                                                                                                                              
|------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(ii)   |  | second, to the payment of unpaid
accrued interest on the Tranche C Debt;                                                                                                                                                                                                                                                                                                     
|       |  |                                                                                                                                                                                                                                                                                                                                                                              
|(iii)  |  | third, to the declaration and
payment of dividends on the First Preferred Shares;                                                                                                                                                                                                                                                                                            
|       |  |                                                                                                                                                                                                                                                                                                                                                                              
|(iv)   |  | fourth, subject to paragraph (c)
below, until the fifth anniversary of the Effective
Date, on a pro rata basis, to the permanent rateable
prepayment of the Tranche C Debt, up to a maximum
aggregate amount equal to 25% of the original principal
amount of the Tranche C Debt, and the redemption of up
to 75% of the First Preferred Shares issued on the
Effective Date;
|       |  |                                                                                                                                                                                                                                                                                                                                                                              
|(v)    |  | fifth, to the declaration and payment
of dividends on the Second Preferred Shares;                                                                                                                                                                                                                                                                                           
|       |  |                                                                                                                                                                                                                                                                                                                                                                              
|(vi)   |  | sixth, until the fifth anniversary of
the Effective Date, to the redemption of up to 75% of
the number of Second Preferred Shares issued on the
Effective Date;                                                                                                                                                                                                              
|       |  |                                                                                                                                                                                                                                                                                                                                                                              
|(vii)  |  | seventh, after the fifth anniversary
of the Effective Date, on a pro rata basis, to repayment
of the remaining principal amount of Tranche C Debt and
redemption of the remaining First Preferred Shares
issued on the Effective Date; and                                                                                                                                   
|       |  |                                                                                                                                                                                                                                                                                                                                                                              
|(viii) |  | eighth, after the fifth anniversary of the Effective
Date, to redemption of the remaining Second Preferred
Shares issued on the Effective Date.                                                                                                                                                                                                                              



| | (b) |  | If a Mandatory Payment required by paragraph (i)
above would result in the repayment of an amount exceeding 25%
of the aggregate principal original amount of the Tranche B
Debt (theTranche B Tax Threshold Amount) to be repaid on or
before the fifth anniversary of the Effective Date, taking
into account all amortization payments on the Tranche B Debt
and all Mandatory Payments made pursuant to paragraphs (A) and
(C) above (but, for greater certainty, not taking into account
any Mandatory Payments made pursuant to paragraph (B) above,
or any voluntary prepayments) then, notwithstanding paragraph
(i) above, that Mandatory Payment shall not be paid, to the
extent that such amount would cause the Tranche B Tax
Threshold Amount to be exceeded, and shall instead be applied
pursuant to paragraphs (ii) through (viii) above, subject to
the limitations provided therein.
| | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| | (c) |  | If a Mandatory Payment required by paragraph (iv)
above would result in the repayment of an amount exceeding 25%
of the aggregate original                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               





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##### 



- 73 -



| |  |  | principal amount of the Tranche C Loans (the Tranche C Tax
Threshold Amount) to be repaid on or before the fifth
anniversary of the Effective Date, taking into account all
Mandatory Payments made pursuant to paragraphs (A) and (C)
(but, for greater certainty, not taking into account any
Mandatory Payments made pursuant to paragraph (B) above, or
any voluntary prepayments), then, notwithstanding paragraphs
(iv) above, that Mandatory Payment shall not be paid, to the
extent that such amount would cause the Tranche C Tax
Threshold Amount to be exceeded, and shall instead be applied
pursuant to paragraphs (v) through (viii), subject to the
limitations provided therein.
| |  |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|   |  | Any amount remaining after the application of Mandatory Payments above
shall be kept by the Corporation.
|-- |  | --------------------------------------------------------------------------------------------------------
|  
|7. |  | CONSTRAINED CLASS RESTRICTIONS.                                                                         



| |  | 7.1.          Definitions.                                                                                                                                                                                                                                                                                                                                                             
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
| |  | All terms used in this Section 7 which are defined in the Act or the
Regulations shall have the meanings ascribed thereto in the Act or the
Regulations, except a otherwise expressly provided for herein.                                                                                                                                                                             
|
| |  | For the purposes of this Section 7, where a Voting Share is held,
beneficially owned or controlled jointly, and one or more of the joint
holders, beneficial owners or persons controlling the Voting Share is a
member of the Constrained Class, the Voting Share is deemed to be held,
beneficially owned or controlled, as the case may be, by such member of
the Constrained Class.
|

|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                      
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|7.2.  |  | Issue and Transfer Restrictions, Etc.                                                                                                                                                                                                                                                                                                                                                                                
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                      
|7.2.1 |  | The Board shall not issue (provided that a conversion
pursuant to paragraphs 2.5, 3.4.7, 3.5.4, 4.4.7 and 4.5.4 hereof
shall not represent an issue of Voting Shares, as the case may be
for this purpose, although, for certainty, all other conversions
represent such an issue) a Voting Share and shall refuse to register
a transfer of a Voting Share to a person who is a member of the
Constrained Class, if:

| |  |     |  |                                                                                                                                                                                                                                                                                                                                  
| |  | --- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (a) |  | the total number of shares held by or on behalf
of persons in the Constrained Class does not exceed the
Maximum Aggregate Holdings and the issuance or transfer, as
the case may be, of such Voting Shares would cause the number
of shares held by persons in the Constrained Class to exceed
the Maximum Aggregate Holdings; or
| |  |     |  |                                                                                                                                                                                                                                                                                                                                  
| |  | (b) |  | the total number of shares held by or on behalf
of persons in the Constrained Class exceeds the Maximum
Aggregate Holdings and the issuance or transfer, as the case
may be, of such Voting Shares is to a person in the
Constrained Class.                                                                                      





---



##### 



- 74 -

|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|----- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |  | In the event that, for whatever reason, the Maximum Aggregate
Holdings of Voting Shares by members of the Constrained Class is
exceeded, the Corporation shall enjoy the rights and privileges set
out in Section 46 of the Act, subject to the provisions of the Act
and the Regulations namely, that it may sell, as if it were the
owner thereof, any Voting Shares that are owned by members of the
Constrained Class for the purpose of ensuring that the Maximum
Aggregate Holdings of shares by members of the Constrained Class is
not exceeded.                                                                                                                                                                  
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|      |  | The Board may refuse to issue or register a transfer of a Voting
Share if the issue or transfer, as the case may be, is to a person
who may be a member of a Constrained Class and who, in respect of
the issue or registration of the transfer of such Voting Share, as
the case may be, has been requested by the Corporation to furnish
it with any information which may be requested by the directors as
contemplated by subsection 86(1) of the Regulations, and has not
furnished such information.                                                                                                                                                                                                                
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|      |  | Subject to the Act and the Regulations, the Board may establish,
amend or repeal any procedures required to administer the
constrained share provisions set out in this Section 7 and to
require any affidavit, declaration or other statement required
under the Canadian Ownership and Control Provisions.                                                                                                                                                                                                                                                                                                                                                                                                              
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|7.2.2 |  | No shareholder of the Corporation nor any other interested
person shall have any claim or action against the Corporation or
against any director or officer of the Corporation nor shall the
Corporation have any claim or action against any director or officer
of the Corporation arising out of any act (including any omission to
act) performed pursuant to or in intended pursuance of the
provisions of this Section 7 or any breach or alleged breach by the
Corporation of any of the provisions of this Section 7, and, for
greater certainty, no such person shall be liable for any damages or
losses related to or as a consequence of any such act or any such
breach or alleged breach of such provisions.
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|      |  | In the administration of the provisions of this Section 7, the
Board shall have, in addition to the powers explicitly set forth
herein, all of the powers necessary or desirable, to carry out the
intent and purpose hereof, including but not limited to all powers
contemplated by the provisions relating to constrained share
corporations in the Act and the Regulations and all power
contemplated by the Canadian Ownership and Control Provisions with
respect to the ownership of shares of a telecommunications common
carrier, or a carrier holding corporation by non-Canadians.                                                                                                                             
|      |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|7.2.3 |  | In the event of any conflict between the provisions of this
Section 7 and of the provisions in the Act and the Regulations
relating to constrained share corporations or the Canadian Ownership
and Control Provisions with respect to the ownership of shares of a
telecommunications common carrier, or a carrier holding corporation,
the provisions in the Act and Regulations or the Canadian Ownership
and Control Provisions, as the case may be, shall prevail, and the
provisions of this Section 7 shall be deemed to be amended
accordingly and shall be retroactive in effect, as so amended.                                                                                                                 





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##### 



- 75 -

|      |  |                                                                                                                                                                                                                 
|----- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|7.2.4 |  | The Board shall ensure that share certificates in respect of
Voting Shares shall have conspicuously noted thereon a reference to
the constraints contained herein, in accordance with Section 49(10)
of the Act.



|7.2.5 |  | The invalidity or unenforceability of any provision, in whole or in part,
of this Section 7 for any reason shall not affect the validity or
enforceability of any other provision thereof.
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





---



##### 



SCHEDULE B

TO THE PLAN OF ARRANGEMENT OF MICROCELL TELECOMMUNICATIONS INC.


DIRECTORS; TERMS OF DIRECTORS

|                  |  |      
|----------------- |  | -----
|Name              |  | Group
|                  |  |      
|André Bureau      |  | A    
|                  |  |      
|Jim Continenza    |  | B    
|                  |  |      
|Christian Dubé    |  | B    
|                  |  |      
|Gary Goertz       |  | B    
|                  |  |      
|Bob Latham        |  | B    
|                  |  |      
|Berl Nadler       |  | B    
|                  |  |      
|Paul McFarlane    |  | B    
|                  |  |      
|Steven D. Scheiwe |  | A    
|                  |  |      
|Charles Sirois    |  | A    
|                  |  |      
|André Tremblay    |  | A    
|                  |  |      
|Lorie Waisberg    |  | A    
|                  |  |      





---



##### 





SCHEDULE C
TO THE PLAN OF ARRANGEMENT UNDER SECTION 192
OF THE CANADA BUSINESS CORPORATIONS ACT

FORM OF SCHEDULE 2 TO THE ARTICLES OF THE APPLICANT

Section 1.1     Interpretation

In this Schedule 2, the following terms and expressions shall have the
following meaning unless otherwise indicated:

Class A Restricted Voting Shares means Class A Restricted Voting Shares in
the capital of the Corporation.

Effective Date means the date of implementation of the Plan.

First Instruments means the First Preferred Voting Shares, First Voting
Units, First Preferred Non-Voting Shares and First Non-Voting Units,
collectively.

First Non-Voting
Unit means a First Unit which includes a First Preferred
Non-Voting 2 Share.

First Notes means a series of subordinated convertible 9% notes of the
Corporation included in the First Units issuable pursuant to a certain First
Unit Indenture between the Corporation and Computershare Trust Company of
Canada as trustee dated May 1, 2003.

First Preferred Non-Voting
Shares means First Preferred Non-Voting Shares in
the capital of the Corporation.

First Preferred Non-Voting 2
Shares means First Preferred Non-Voting 2 Shares
in the capital of the Corporation.

First Preferred Voting
Shares means First Preferred Voting Shares in the
capital of the Corporation.

First Preferred Voting 2
Shares means First Preferred Voting 2 Shares in the
capital of the Corporation.

First Unit means a unit consisting of a First Note together with one First
Preferred Voting 2 Share or one First Preferred Non-Voting 2 Share, as the case
may be.

First Voting
Instruments means First Preferred Voting Shares and First Voting
Units, collectively.

First Voting Unit means a First Unit which includes a First Preferred Voting
2 Share.





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##### 



- 78 -

Plan means that certain plan of reorganization and of compromise and
arrangement dated February 17, 2003 under the Companies Creditors Arrangement
Act (Canada) and the Canada Business Corporations Act in respect of 2861399
Canada Inc. (formerly known as Microcell Telecommunications Inc.) and certain
of its subsidiaries, as amended.

Second Notes means a series of subordinated convertible 9% notes of the
Corporation included in the Second Units issuable pursuant to a certain Second
Note Indenture between the Corporation and Computershare Trust Company of
Canada as trustee to be dated May 1, 2003.

Second Preferred Non-Voting 2
Shares means First Preferred Non-Voting 2
Shares in the capital of the Corporation.

Second Preferred Voting
Shares means Second Preferred Voting Shares in the
capital of the Corporation.

Second Preferred Voting 2 Shares means First Preferred Voting 2 Shares in the
capital of the Corporation.

Second Unit means a unit consisting of a Second Note together with one Second
Preferred Voting 2 Share or one Second Preferred Non-Voting 2 Share, as the
case may be.

Second Voting Unit
means a Second Unit which includes a Second Preferred Voting 2
Share.Section 1.2 Staggered Terms

At the first meeting of shareholders of the Corporation at which an election of
directors is required and at each annual meeting of shareholders of the
Corporation thereafter, directors shall be elected to the board of directors of
the Corporation to hold office for a stated term expiring at the close of the
second annual meeting of shareholders following their election.

As redemptions of First Preferred Voting Shares (or First Voting Units, as the
case may be) or conversions of First Preferred Voting Shares (or First Voting
Units, as the case may be) into Class A Restricted Voting Shares occur from
time to time, the number of directors nominated and elected to the board of
directors of the Corporation by holders of First Preferred Voting Shares (or
First Voting Units, as the case may be) shall be reduced, effective at the next
annual meeting of the shareholders at which directors nominated and elected by
holders of First Preferred Voting Shares (or First Voting Units, as the case
may be) retire from office, according to the number of First Instruments
outstanding on the date as of which information is provided to shareholders in
the management proxy circular prepared for the meeting of shareholders in
question relative to the aggregate number of First Instruments issued on the
Effective Date, in accordance with the following table:

|                                            |  |                                               |   | 
|------------------------------------------- |  | --------------------------------------------- | - | 
|Percentage of First
Instruments outstanding |  | Number of
Directors nominated and elected    
|as a percentage of
First Instruments issued |  | to the
board of directors by the First Voting
|on the Effective Date                       |  | Instruments                                  
|                                            |  |                                              
|70% or more                                 |  |                                               | 7 | 
|                                            |  |                                               |   | 
|50% to 69.99%                               |  |                                               | 6 | 
|                                            |  |                                               |   | 





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##### 



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|                                            |  |                                               |   | 
|------------------------------------------- |  | --------------------------------------------- | - | 
|                                            |  |                                               |   | 
|Percentage of First
Instruments outstanding |  | Number of
Directors nominated and elected    
|as a percentage of
First Instruments issued |  | to the
board of directors by the First Voting
|on the Effective Date                       |  | Instruments                                  
|                                            |  |                                              
|30% to 49.99%                               |  |                                               | 3 | 
|                                            |  |                                               |   | 
|10% to 29.99%                               |  |                                               | 2 | 
|                                            |  |                                               |   | 
|Less than 10%                               |  |                                               | 0 | 
|                                            |  |                                               |   | 

If holders of the First Preferred Voting Shares (or First Voting Units, as the
case may be) lose the entitlement to elect one or more director(s) in
accordance with the foregoing, holders of Class A Restricted Voting Shares,
Second Preferred Voting Shares (or Second Voting Units, as the case may be)
shall correspondingly be entitled to elect additional director(s) such that the
number of directors of the board of directors of the Corporation shall equal 11

For greater certainty, holders of Class A Restricted Voting Shares and of
Second Preferred Voting Shares (or Second Voting Units, as the case may be),
shall not be entitled to exercise any vote in respect of the election of the
directors to be elected by holders of First Preferred Voting Shares (or First
Voting Units, as the case may be) and holders of First Preferred Voting Shares
(or First Voting Units, as the case may be) shall not be entitled to exercise
any vote in respect of the election of the directors to be elected by holders
of Class A Restricted Voting Shares and of Second Preferred Voting Shares (or
Second Voting Units, as the case may be).