Document:

Exhibit 4.5
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                                                                              1A

                                    Schedule
                                    --------

The Articles of the Corporation are amended as follows:

1.   to  increase  the  authorized  capital of the  Corporation  by  creating an
     unlimited number of Exchangeable Shares without nominal or par value.

so that after giving effect to the  amendments  set out in this  paragraph,  the
classes and any maximum  number of shares that the  Corporation is authorized to
issue are:

     (a)  an unlimited number of Common Shares without nominal or par value; and

     (b)  an unlimited  number of  Exchangeable  Shares  without  nominal or par
          value.

2.   to  delete in their  entirety  the  rights,  privileges,  restrictions  and
     conditions  set out in the  Articles of the  Corporation  and  substituting
     therefor the rights,  privileges,  restrictions and conditions attaching to
     the Common Shares and Exchangeable Shares as follows:

A. The rights,  privileges,  restrictions and conditions attaching to the Common
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Shares are as follows:
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     (i)     Voting
             ------

     The holders of Common  Shares shall be entitled to notice of, to attend and
     to one  vote per  share  held at any  meeting  of the  shareholders  of the
     Corporation  (other  than  meetings  of a class or  series of shares of the
     Corporation other than the Common Shares as such).

     (ii)    Dividends
             ---------

     The holders of Common Shares shall be entitled to receive  dividends as and
     when declared by Board of Directors of the Corporation on the Common Shares
     as a class,  subject to prior  satisfaction of all  preferential  rights to
     dividends  attached  to all  shares  of  other  classes  of  shares  of the
     Corporation  ranking  in  priority  to the  Common  Shares  in  respect  of
     dividends; and

     (iii)   Remaining Property on Dissolution
             ---------------------------------

     The  holders  of  Common  Shares  shall  be  entitled  in the  event of any
     liquidation,   dissolution  or  winding-up  of  the  Corporation,   whether
     voluntary or  involuntary,  or any other  distribution of the assets of the
     Corporation  among its  shareholders  for the  purpose  of  winding-up  its
     affairs,  and subject to prior  satisfaction of all preferential  rights to
     return of capital on dissolution attached to all shares of other classes of
     shares of the  Corporation  ranking in  priority  to the  Common  Shares in
     respect of return of capital on dissolution,  to share  rateably,  together
     with  the  holders  of the  shares  of any  other  class of  shares  of the
     Corporation  ranking equally with the Common Shares in respect of return of
     capital on dissolution,  in such assets of the Corporation as are available
     for distribution.

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                                                                              1B

B.  The  rights,  privileges,  restrictions  and  conditions  attaching  to  the
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Exchangeable Shares (the "Exchangeable Share Provisions") are as follows:
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                                    ARTICLE 1
                                    ---------
                                 INTERPRETATION
                                 --------------

1.1  For the purposes of these provisions:

     (a)  "Act" means the Business Corporations Act (Ontario), as amended;

     (b)  "Affiliate"  has the meaning  ascribed  thereto in the  Securities Act
          (Ontario);

     (c)  "Board of Directors" means the Board of Directors of the Corporation;

     (d)  "Business Day" means any day on which  commercial  banks are generally
          open for business in Toronto, Ontario, other than a Saturday, a Sunday
          or a day observed as a holiday in Toronto,  Ontario  under the laws of
          the Province of Ontario or the federal laws of Canada;

     (e)  "Common  Shares"  means  the  common  shares  in  the  capital  of the
          Corporation;

     (f)  "Corporation" means MG Holdings Inc., a corporation incorporated under
          the Act;

     (g)  "Current  Market Price" means,  in respect of a Monaco Common Share on
          any  date,  (i) if the  Monaco  Common  Shares  are  listed on a stock
          exchange or  automated  quotation  system,  the  quotient  obtained by
          dividing  (a) the  aggregate of the Daily Value of Trades for each day
          during the period of 5  consecutive  trading days ending not more than
          three trading days before such date;  by (b) the  aggregate  volume of
          Monaco Common Shares used to calculate such Daily Value of Trades; and
          (ii) if the Monaco Common Shares are not listed on a stock exchange or
          automated  quotation  system,  the fair market value of such shares as
          determined by the board of directors of Monaco;

     (h)  "Daily Value of Trades" means,  in respect of the Monaco Common Shares
          on any trading  day,  the product of (a) the volume  weighted  average
          price of Monaco  Common  Shares on such stock  exchange  or  automated
          quotation  system on which the  Monaco  Ordinary  Shares are listed or
          quoted,  as the  case  may be,  as may be  selected  by the  board  of
          directors of Monaco for such purpose on such date,  as  determined  by
          Bloomberg  L.P. or other  reputable,  third party  information  source
          selected by the board of  directors of Monaco;  and (b) the  aggregate
          volume  of  Monaco  Common  Shares  traded  on such day on such  stock
          exchange or  automated  quotation  system and used to  calculate  such
          volume  weighted  average price;  provided that any such selections by
          the board of directors of Monaco shall be conclusive and binding;

     (i)  "Dividend  Amount" means an amount equal to, and in full  satisfaction
          of, all declared and unpaid dividends on an Exchangeable Share held by

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                                                                              1C

          a holder on any dividend  record date which occurred prior to the date
          of purchase of such share by Monaco from such Holder;

     (j)  "Effective  Date"  means  July 8,  2004 or such  other  date as may be
          designated by the Board of Directors;

     (k)  "Exchange  Agreement"  means the  agreement  made  among  Monaco,  the
          Corporation and SVFI and dated as of the Effective Date;

     (l)  "Exchangeable  Shares" mean the non-voting  exchangeable shares in the
          capital   of  the   Corporation,   having  the   rights,   privileges,
          restrictions and conditions set forth herein;

     (m)  "Holder" means,  when used with reference to the Exchangeable  Shares,
          the  holders  of  Exchangeable  Shares  shown from time to time in the
          register  maintained by or on behalf of the  Corporation in respect of
          the Exchangeable Shares;

     (n)  "Liquidation  Amount" has the meaning  ascribed thereto in Section 5.1
          of these Exchangeable Share Provisions;

     (o)  "Liquidation  Call Purchase Price" has the meaning ascribed thereto in
          Section 6.1;

     (p)  "Liquidation  Call Right" has the meaning  ascribed thereto in Section
          6.1;

     (q)  "Liquidation  Date" has the meaning ascribed thereto in Section 8.1 of
          these Exchangeable Share Provisions;

     (r)  "Monaco" means Monaco Group Inc., a corporation  established under the
          laws of the State of Delaware;

     (s)  "Monaco Call Notice" has the meaning  ascribed  thereto in Section 8.3
          of these Exchangeable Share Provisions;

     (t)  "Monaco  Common  Shares" means the shares of common stock of Monaco as
          constituted on the Effective Date;

     (u)  "Monaco Dividend  Declaration  Date" means the date on which the board
          of  directors of Monaco  declares  any  dividend on the Monaco  Common
          Shares;

     (v)  "Monaco Shareholders" means holders of Monaco Common Shares;

     (w)  "Optional  Redemption" has the meaning ascribed thereto in Section 4.1
          of these Exchangeable Share Provisions;

     (x)  "Redemption  Call Purchase Price" has the meaning  ascribed thereto in
          Section 7.1(a);

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                                                                              1D

     (y)  "Redemption  Call Right" has the meaning  ascribed  thereto in Section
          7.1(a);

     (z)  "Redemption Date" means any date selected by the Corporation as a date
          for the completion of an Optional Redemption of Exchangeable Shares as
          set out in Section 4.2;

     (aa) "Redemption Price" means US$1.25 per Exchangeable Share;

     (bb) "Retracted  Shares" has the meaning ascribed thereto in Section 8.1(a)
          of these Exchangeable Share Provisions;

     (cc) "Retraction  Call Right" has the meaning  ascribed  thereto in Section
          8.1(c) of these Exchangeable Share Provisions;

     (dd) "Retraction  Date" has the meaning  ascribed thereto in Section 8.1(b)
          of these Exchangeable Share Provisions;

     (ee) "Retraction  Price" has the meaning  ascribed thereto in Section 8.1of
          these Exchangeable Share Provisions;

     (ff) "Retraction  Request" has the meaning  ascribed thereto in Section 8.1
          of these Exchangeable Share Provisions;

     (gg) "Person" includes any individual,  firm,  partnership,  joint venture,
          venture capital fund, limited liability company,  unlimited  liability
          company,  association,  trust, SVFI,  executor,  administrator,  legal
          personal representative,  estate, group, body corporate,  corporation,
          unincorporated association or organization, syndicate or other entity,
          whether or not having legal status;

     (hh) "SVFI"  means Sweet  Valley  Foods Inc.,  a  corporation  incorporated
          pursuant to the laws of the Province of Ontario; and

     (ii) "United  States" or "U.S."  means the United  States of  America,  its
          territories  and  possessions,  any State of the United States and the
          District of Columbia.

                                    ARTICLE 2
                                    ---------
             AUTHORIZED NUMBER OF EXCHANGEABLE SHARES AND RANKING OF
             -------------------------------------------------------
                               EXCHANGEABLE SHARES
                               -------------------

2.1  The Corporation is authorized to issue an unlimited  number of Exchangeable
     Shares without nominal or par value.

2.2  The Exchangeable Shares shall,  subject to the following,  be entitled to a
     preference  over the Common Shares and any other shares  ranking  junior to
     the  Exchangeable  Shares with respect to the payment of dividends  and the
     distribution  of  assets in the event of the  liquidation,  dissolution  or
     winding-up of the  Corporation,  whether  voluntary or involuntary,  or any
     other  distribution of the assets of the Corporation among its shareholders
     for the purpose of winding up its affairs;  provided  that  notwithstanding

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                                                                              1E

     such  ranking  the  Corporation  shall  not be  restricted  in any way from
     repaying indebtedness of the Corporation to Monaco from time to time.

                                    ARTICLE 3
                                    ---------
                                    DIVIDENDS
                                    ---------

3.1  A holder of an  Exchangeable  Share  shall be  entitled  to receive and the
     Board of  Directors  shall,  subject  to  applicable  law,  on each  Monaco
     Dividend Declaration Date, declare a dividend on each Exchangeable Share:

     (a)  in the case of a cash dividend  declared on the Monaco Common  Shares,
          in an amount in cash for each Exchangeable Share equal to the Canadian
          Dollar  equivalent of the cash dividend declared on each Monaco Common
          Share on the Monaco Dividend Declaration Date;

     (b)  in the case of a stock  dividend  declared on the Monaco Common Shares
          to be paid in Monaco  Common  Shares,  by the issue or transfer by the
          Corporation   of  such   number  of   Exchangeable   Shares  for  each
          Exchangeable  Share as is equal to the number of Monaco  Common Shares
          to be paid on each Monaco  Common  Share  unless in lieu of such stock
          dividend  the  Corporation   elects  to  effect  a  corresponding  and
          contemporaneous  and  economically  equivalent  (as  determined by the
          Board  of  Directors)  subdivision  of  the  outstanding  Exchangeable
          Shares; or

     (c)  in the case of a  dividend  declared  on the Monaco  Common  Shares in
          property  other than cash or Monaco  Common  Shares,  in such type and
          amount of property  for each  Exchangeable  Share as is the same as or
          economically equivalent to (to be determined by the Board of Directors
          as contemplated by Section 3.4 hereof) the type and amount of property
          declared as a dividend on each Monaco Common Share.

     Such  dividends  shall be paid out of  money,  assets  or  property  of the
     Corporation  properly  applicable  to the payment of  dividends,  or out of
     authorized  but unissued  shares of the  Corporation,  as  applicable.  The
     Holders of Exchangeable Shares shall not be entitled to any dividends other
     than or in excess of the dividends referred to in this Section 3.1.

3.2  Cheques of the  Corporation  payable at par at any branch of the bankers of
     the  Corporation   shall  be  issued  in  respect  of  any  cash  dividends
     contemplated  by Section  3.1(a) hereof and the sending of such a cheque to
     each  holder of an  Exchangeable  Share  shall  satisfy  the cash  dividend
     represented  thereby  unless  the  cheque  is  not  paid  on  presentation.
     Certificates   registered  in  the  name  of  the   registered   holder  of
     Exchangeable  Shares shall be issued or transferred in respect of any stock
     dividends  contemplated by Section 3.1 (b) hereof and the sending of such a
     certificate to each holder of an Exchangeable Share shall satisfy the stock
     dividend  represented  thereby.  Such other type and amount of  property in
     respect of any  dividends  contemplated  by Section 3.1 (c) hereof shall be
     issued,  distributed or transferred by the Corporation in such manner as it
     shall determine and the issuance,  distribution or transfer  thereof by the
     Corporation  to each  holder of an  Exchangeable  Share  shall  satisfy the

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                                                                              1F

     dividend  represented  thereby. No holder of an Exchangeable Share shall be
     entitled  to  recover  by  action  or  other  legal  process   against  the
     Corporation  any dividend that is represented by a cheque that has not been
     duly presented to the  Corporation's  bankers for payment or that otherwise
     remains  unclaimed  for a period of six years  from the date on which  such
     dividend was payable.

3.3  The record date for the determination of the Holders of Exchangeable Shares
     entitled  to receive  payment of, and the payment  date for,  any  dividend
     declared on the  Exchangeable  Shares under Section 3.1 hereof shall be the
     same dates as the  record  date and  payment  date,  respectively,  for the
     corresponding  dividend  declared on the Monaco Common  Shares.  The record
     date for the  determination of the Holders of Exchangeable  Shares entitled
     to  receive   Exchangeable  Shares  in  connection  with  any  subdivision,
     redivision or change of the Exchangeable Shares under Section 3.1(b) hereof
     and the effective date of such  subdivision  shall be the same dates as the
     record and payment date, respectively, for the corresponding stock dividend
     declared on the Monaco Common Shares.

3.4  If on any  payment  date for any  dividends  declared  on the  Exchangeable
     Shares under  Section 3.1 hereof the  dividends are not paid in full on all
     of the Exchangeable Shares then outstanding, any such dividends that remain
     unpaid shall be paid on a subsequent date or dates  determined by the Board
     of Directors on which the Corporation shall have sufficient moneys,  assets
     or property properly applicable to the payment of such dividends.

3.5  The  Board of  Directors  shall  determine,  in good  faith and in its sole
     discretion,  economic  equivalence  for the purposes of Section 3.1 hereof,
     and  each  such  determination  shall  be  conclusive  and  binding  on the
     Corporation and its shareholders.  In making each such  determination,  the
     following factors shall,  without excluding other factors determined by the
     Board of Directors to be relevant, be considered by the Board of Directors:

     (a)  in the case of any stock  dividend  or other  distribution  payable in
          Monaco Common  Shares,  the number of such shares issued in proportion
          to the number of Monaco Common Shares previously outstanding;

     (b)  in the case of the issuance or distribution of any rights,  options or
          warrants  to  subscribe  for or  purchase  Monaco  Common  Shares  (or
          securities  exchangeable for or convertible into or carrying rights to
          acquire Monaco Common Shares),  the relationship  between the exercise
          price of each such right,  option or warrant  and the  Current  Market
          Price; and

     (c)  in the case of the  issuance  or  distribution  of any  other  form of
          property  (including  without  limitation  any shares or securities of
          Monaco of any class  other than  Monaco  Common  Shares,  any  rights,
          options or warrants  other than those  referred  to in Section  3.5(b)
          hereof,  any  evidences  of  indebtedness  of Monaco or any  assets of
          Monaco), the relationship between the fair market value (as determined
          by the Board of Directors  acting  reasonably)  of such property to be
          issued or distributed with respect to each  outstanding  Monaco Common
          Share and the Current Market Price of a Monaco Common Share.

<PAGE>

                                                                              1G

                                    ARTICLE 4
                                    ---------
              REDEMPTION OF EXCHANGEABLE SHARES BY THE CORPORATION
              ----------------------------------------------------

4.1  Subject to applicable law, and the Redemption Call Right, and upon not less
     than 30 days prior notice given to the Holders of the Exchangeable  Shares,
     the Corporation may redeem some or all of the then outstanding Exchangeable
     Shares  (such  redemption  being  an  "Optional  Redemption")  on any  date
     selected  by the Board of  Directors  for an  Optional  Redemption  for the
     Redemption  Price,  and payment of the  Redemption  Price per  Exchangeable
     Share shall be satisfied in full in all cases by the Corporation delivering
     an amount in cash equal to the Redemption Price, in accordance with Section
     4.3 of these Exchangeable  Share Provisions.  In case only part of the then
     outstanding  Exchangeable  Shares  are  at any  time  to be  redeemed,  the
     Exchangeable  Shares to be redeemed  shall be redeemed pro rata,  excluding
     fractions, from the holdings of all shareholders of Exchangeable Shares.

4.2  In any case of a redemption  of  Exchangeable  Shares under this Article 4,
     the Corporation  shall,  at least 30 days before the applicable  Redemption
     Date,  send or cause to be sent to each  holder  of  Exchangeable  Shares a
     notice in writing of the redemption by the Corporation of the  Exchangeable
     Shares held by such holder (a "Redemption Notice").

4.3  On or within five (5) Business  Days  following the  applicable  Redemption
     Date, the Corporation shall deliver or cause to be delivered to the Holders
     of the  Exchangeable  Shares to be redeemed the  Redemption  Price for each
     such Exchangeable Share upon presentation and surrender of the certificates
     representing such Exchangeable  Shares,  together with such other documents
     and  instruments  as may be required  to effect a transfer of  Exchangeable
     Shares under the Act and the by-laws of the Corporation and such additional
     documents and instruments as the Corporation may reasonably require, at the
     registered  office of the  Corporation or at any office as may be specified
     by the Corporation in such notice.  On and after the applicable  Redemption
     Date, the Holders of the  Exchangeable  Shares called for redemption  shall
     cease to be Holders of such  Exchangeable  Shares and shall not be entitled
     to exercise any of the rights of Holders in respect thereof, other than the
     right to receive  Redemption Price,  unless payment of the total Redemption
     Price for such Exchangeable  Shares shall not be made upon presentation and
     surrender of certificates in accordance with the foregoing  provisions,  in
     which case the rights of the  Holders  shall  remain  unaffected  until the
     total Redemption Price has been paid in the manner  hereinbefore  provided.
     If only part of the Exchangeable  Shares represented by any certificate are
     to be redeemed,  a new  certificate  for the balance shall be issued at the
     expense of the Corporation.

4.4  Notwithstanding  the  foregoing  provisions  of Sections  4.1, 4.2 and 4.3,
     Holders of  Exchangeable  Shares shall have until the 10th day  immediately
     preceding the Redemption Date  referenced in a Redemption  Notice to elect,
     by written  notice to the  Corporation to exercise their rights to exchange
     the  Exchangeable  Shares for Monaco Common  Shares in accordance  with the
     Exchange  Agreement,  failing which the Corporation shall proceed to effect
     the redemption of the Exchangeable  Shares in accordance with Sections 4.1,
     4.2 and 4.3.

<PAGE>

                                                                              1H

                                    ARTICLE 5
                                    ---------
                           DISTRIBUTION ON LIQUIDATION
                           ---------------------------

5.1  In  the  event  of  the  liquidation,  dissolution  or  winding-up  of  the
     Corporation  or any other  distribution  of the  assets of the  Corporation
     among its shareholders for the purpose of winding up its affairs,  a holder
     of  Exchangeable  Shares shall be entitled,  subject to applicable  law, to
     receive from the assets of the Corporation in respect of each  Exchangeable
     Share held by such holder on the effective date (the "Liquidation Date") of
     such liquidation, dissolution, winding-up or other distribution, before any
     distribution of any part of the assets of the Corporation among the holders
     of the Common Shares or any other shares ranking junior to the Exchangeable
     Shares,  an amount per share (the  "Liquidation  Amount") equal to US$1.25,
     which shall be satisfied in full by the  Corporation  delivering or causing
     to  be  delivered  to  such  holder  two  (2)  Monaco  Common  Shares  (the
     "Liquidation  Amount")  plus an amount  equal to all  declared  and  unpaid
     dividends  on each  such  Exchangeable  Share  held by such  holder  on any
     dividend record date which occurred prior to the Liquidation.

5.2  On or promptly after the Liquidation Date, the Corporation shall deliver or
     cause  to be  delivered  to the  Holders  of the  Exchangeable  Shares  the
     Liquidation  Amount for each such Exchangeable  Share upon presentation and
     surrender  of  the  certificates  representing  such  Exchangeable  Shares,
     together with such other  documents and  instruments  as may be required to
     effect a transfer of  Exchangeable  Shares under the Act and the by-laws of
     the  Corporation  and such  additional  documents  and  instruments  as the
     Corporation  may  reasonably  require,  at  the  registered  office  of the
     Corporation  or at any office as may be  specified  by the  Corporation  by
     notice to the  Holders  of the  Exchangeable  Shares.  Payment of the total
     Liquidation  Amount for such Exchangeable  Shares shall be made by delivery
     to each  holder,  at the address of the holder  recorded in the register of
     Holders  of the  Exchangeable  Shares  maintained  by or on  behalf  of the
     Corporation  or by holding  for  pick-up  by the  holder at the  registered
     office of the  Corporation or at any office of the Transfer Agent as may be
     specified  by the  Corporation  by notice to the  Holders  of  Exchangeable
     Shares, on behalf of the Corporation,  of certificates  representing Monaco
     Common  Shares  (which  securities  shall be duly  issued as fully paid and
     non-assessable  and  shall  be  free  and  clear  of  any  lien,  claim  or
     encumbrance),  less any amounts  withheld on account of tax  required to be
     deducted and withheld  therefrom.  On and after the  Liquidation  Date, the
     Holders  of the  Exchangeable  Shares  shall  cease to be  Holders  of such
     Exchangeable Shares and shall not be entitled to exercise any of the rights
     of Holders in respect  thereof,  other than: (i) the right to receive their
     proportionate part of the total Liquidation  Amount,  unless payment of the
     total  Liquidation  Amount for such  Exchangeable  Shares shall not be made
     upon  presentation  and surrender of  certificates  in accordance  with the
     foregoing provisions,  in which case the rights of the Holders shall remain
     unaffected until the total  Liquidation  Amount has been paid in the manner
     hereinbefore  provided;  and (ii) the right to  receive  any  declared  and
     unpaid dividends on such Exchangeable Shares.

5.3  After the  Corporation  has satisfied its obligations to pay the Holders of
     the  Exchangeable  Shares the  Liquidation  Amount per  Exchangeable  Share

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                                                                              1I

     pursuant  to  Section  5.1 of these  Exchangeable  Share  Provisions,  such
     Holders shall not be entitled to share in any further  distribution  of the
     assets of the Corporation.

                                    ARTICLE 6
                                    ---------
                          MONACO LIQUIDATION CALL RIGHT
                          -----------------------------

6.1  Monaco shall have the overriding right (the "Liquidation  Call Right"),  in
     the event of and notwithstanding the proposed  liquidation,  dissolution or
     winding-up of the  Corporation or any other  distribution  of the assets of
     the Corporation  among its  shareholders  for the purpose of winding up its
     affairs,  pursuant to Article 5 of these Exchangeable Share Provisions,  to
     purchase  from all but not less  than all of the  holders  of  Exchangeable
     Shares (other than any holder of Exchangeable  Shares which is Monaco or an
     Affiliate of Monaco) on the  Liquidation  Date all but not less than all of
     the Exchangeable Shares held by each such holder on payment by Monaco of an
     amount per Exchangeable Share (the "Liquidation Call Purchase Price") equal
     to two times the Current  Market Price of a Monaco Common Share on the last
     Business  Day prior to the  Liquidation  Date,  which shall be satisfied in
     full by Monaco  delivering  or causing to be  delivered  to such holder two
     Monaco  Common  Shares,  plus  any  Dividend  Amount.  In the  event of the
     exercise of the  Liquidation  Call Right by Monaco,  each  holder  shall be
     obligated to sell all the Exchangeable  Shares held by the holder to Monaco
     on  the  Liquidation  Date  on  payment  by  Monaco  to the  holder  of the
     Liquidation  Call Purchase Price for each such share,  and the  Corporation
     shall have no obligation to pay any  Liquidation  Amount or Dividend Amount
     to the holders of such shares so purchased by Monaco.

6.2  To exercise the Liquidation Call Right,  Monaco must notify the Corporation
     of Monaco's  intention  to exercise  such right at least 45 days before the
     Liquidation  Date in the case of a voluntary  liquidation,  dissolution  or
     winding-up of the  Corporation or any other  voluntary  distribution of the
     assets of the Corporation among its shareholders for the purpose of winding
     up its affairs, and at least five Business Days before the Liquidation Date
     in the case of an involuntary liquidation, dissolution or winding-up of the
     Corporation  or any other  involuntary  distribution  of the  assets of the
     Corporation  among its  shareholders  for the  purpose  of  winding  up its
     affairs.  The Corporation will notify the holders of Exchangeable Shares as
     to whether or not Monaco has exercised the Liquidation Call Right forthwith
     after the expiry of the period  during  which the same may be  exercised by
     Monaco.  If  Monaco  exercises  the  Liquidation  Call  Right,  then on the
     Liquidation  Date Monaco will purchase and the holders will sell all of the
     Exchangeable  Shares  then  outstanding  for a price per share equal to the
     Liquidation Call Purchase Price.

6.3  For the  purposes of  completing  the purchase of the  Exchangeable  Shares
     pursuant to the Liquidation Call Right, Monaco shall deposit or cause to be
     deposited with Corporation on or before the Liquidation Date,  certificates
     representing  the  aggregate  number of Monaco  Common  Shares which Monaco
     shall deliver or cause to be delivered pursuant to Section 6.1 and a cheque
     or cheques of Monaco  payable at par at any branch of the bankers of Monaco
     representing the aggregate Dividend Amount, if any, in payment of the total
     Liquidation  Call Purchase  Price,  in each case less any amounts  withheld

<PAGE>

                                                                              1J

     pursuant  to section  14.2.  Provided  that  Monaco has  complied  with the
     immediately  preceding  sentence,  on and  after the  Liquidation  Date the
     holders  of the  Exchangeable  Shares  shall  cease  to be  holders  of the
     Exchangeable Shares and shall not be entitled to exercise any of the rights
     of holders in respect thereof (including,  without  limitation,  any rights
     under  the  Exchange  Agreement),  other  than the right to  receive  their
     proportionate  part of the total  Liquidation  Call Purchase Price,  unless
     payment of the total  Liquidation  Call Purchase Price for the Exchangeable
     Shares  shall  not  be  made  upon  presentation  and  surrender  of  share
     certificates  in accordance  with the following  provisions of this Section
     6.3, in which case the rights of the holders shall remain  unaffected until
     the total  Liquidation  Call  Purchase  Price  has been paid in the  manner
     herein  provided.  Upon  surrender to the  Corporation  of a certificate or
     certificates  representing  Exchangeable  Shares,  together with such other
     documents  and  instruments  as may be  required  to effect a  transfer  of
     Exchangeable   Shares  under  the  Act  and  such   additional   documents,
     instruments  and payments as the Corporation  may reasonably  require,  the
     holder of such surrendered certificate or certificates shall be entitled to
     receive in exchange therefor, and the Corporation on behalf of Monaco shall
     transfer to such holder,  the Monaco  Common Shares to which such holder is
     entitled and as soon as reasonably  practicable  thereafter the Corporation
     shall deliver to such holder  certificates  representing  the Monaco Common
     Shares to which the  holder is  entitled  and a cheque or cheques of Monaco
     payable at par at any  branch of the  bankers  of Monaco  representing  the
     remaining  portion,  if any, of the total  Liquidation Call Purchase Price,
     and when received by the Corporation, all dividends and other distributions
     with  respect to such  Monaco  Common  Shares  with a record date after the
     Liquidation  Date and before the date of the transfer of such Monaco Common
     Shares to such holder,  less any amounts withheld pursuant to Section 14.2.
     If Monaco  does not  exercise  the  Liquidation  Call  Right in the  manner
     described  above, on the Liquidation  Date the holders of the  Exchangeable
     Shares will be entitled to receive in  exchange  therefor  the  Liquidation
     Amount  otherwise  payable  by  the  Corporation  in  connection  with  the
     liquidation,   dissolution   or  winding-up  of  the   Corporation  or  any
     distribution of the assets of the Corporation  among its  shareholders  for
     the  purpose  of  winding  up its  affairs  pursuant  to Article 5 of these
     Exchangeable Share Provisions.

                                    ARTICLE 7
                                    ---------
                          MONACO REDEMPTION CALL RIGHT
                          ----------------------------

7.1  In  addition to  Monaco's  rights  contained  in these  Exchangeable  Share
     Provisions,  including,  without  limitation,  the  Retraction  Call Right,
     Monaco  shall have the  following  rights in  respect  of the  Exchangeable
     Shares:

     (a)  Monaco shall have the overriding right (the "Redemption Call Right "),
          notwithstanding  the proposed redemption of the Exchangeable Shares by
          the  Corporation  pursuant to Article 4, to purchase  from all but not
          less than all of the holders of  Exchangeable  Shares  (other than any
          holder of  Exchangeable  Shares  which is Monaco  or an  Affiliate  of
          Monaco)  on the  Redemption  Date  all but not  less  than  all of the
          Exchangeable  Shares held by each such holder which are the subject of
          a  Redemption  Notice on payment by Monaco to each holder of an amount
          per  Exchangeable  Share (the "Redemption Call Purchase Price ") equal

<PAGE>

                                                                              1K

          to two times the Current  Market Price of a Monaco Common Share on the
          last  Business  Day  prior  to the  Redemption  Date,  which  shall be
          satisfied in full by Monaco  delivering  or causing to be delivered to
          such holder two Monaco Common Shares, plus any Dividend Amount. In the
          event of the  exercise of the  Redemption  Call Right by Monaco,  each
          holder shall be obligated to sell all the Exchangeable  Shares held by
          the  holder to Monaco on the  Redemption  Date on payment by Monaco to
          the holder of the Redemption  Call Purchase Price for each such share,
          and the Corporation  shall have no obligation to redeem, or to pay any
          Dividend Amount in respect of, such shares so purchased by Monaco.

     (b)  To  exercise  the  Redemption  Call  Right,  Monaco  must  notify  the
          Corporation  of Monaco's  intention to exercise such right at least 60
          days  before the  Redemption  Date.  The  Corporation  will notify the
          holders  of the  Exchangeable  Shares as to  whether or not Monaco has
          exercised the Redemption  Call Right forthwith after the expiry of the
          period  during which the same may be  exercised  by Monaco.  If Monaco
          exercises the Redemption  Call Right,  on the  Redemption  Date Monaco
          will purchase and the holders will sell all of the Exchangeable Shares
          then  outstanding  for a price per share equal to the Redemption  Call
          Purchase Price.

     (c)  For the purposes of completing the purchase of the Exchangeable Shares
          pursuant to the Redemption  Call Right,  Monaco shall deposit or cause
          to be deposited with the Corporation on or before the Redemption Date,
          certificates representing the aggregate number of Monaco Common Shares
          which  Monaco  shall  deliver  or cause to be  delivered  pursuant  to
          Section 7.1(a) and a cheque or cheques of Monaco payable at par at any
          branch of the bankers of Monaco  representing  the aggregate  Dividend
          Amount,  if any,  in payment  of the total  Redemption  Call  Purchase
          Price,  in each case less any  amounts  withheld  pursuant  to section
          14.2. Provided that Monaco has complied with the immediately preceding
          sentence,  on  and  after  the  Redemption  Date  the  holders  of the
          Exchangeable  Shares  shall  cease to be holders  of the  Exchangeable
          Shares  and shall not be  entitled  to  exercise  any of the rights of
          holders in respect thereof (including,  without limitation, any rights
          under the Exchange  Agreement),  other than the right to receive their
          proportionate part of the total Redemption Call Purchase Price, unless
          payment  of  the  total   Redemption   Call  Purchase  Price  for  the
          Exchangeable  Shares shall not be made upon presentation and surrender
          of share  certificates in accordance with the following  provisions of
          this  Section  7.1(c),  in which case the rights of the holders  shall
          remain  unaffected  until the total Redemption Call Purchase Price has
          been  paid  in the  manner  herein  provided.  Upon  surrender  to the
          Corporation of a certificate or certificates representing Exchangeable
          Shares,  together with such other  documents and instruments as may be
          required to effect a transfer of Exchangeable Shares under the Act and
          such additional documents, instruments and payments as the Corporation
          may reasonably require, the holder of such surrendered  certificate or
          certificates  shall be entitled to receive in exchange  therefor,  and
          the Corporation on behalf of Monaco shall transfer to such holder, the
          Monaco  Common  Shares to which such holder is entitled and as soon as
          reasonably  practicable  thereafter the  Corporation  shall deliver to
          such holder  certificates  representing  the Monaco  Common  Shares to

<PAGE>

                                                                              1L

          which the holder is entitled and a cheque or cheques of Monaco payable
          at  par at any  branch  of the  bankers  of  Monaco  representing  the
          remaining portion, if any, of the total Redemption Call Purchase Price
          and  when  received  by  the  Corporation,  all  dividends  and  other
          distributions  with respect to such Monaco Common Shares with a record
          date after the Redemption  Date and before the date of the transfer of
          such Monaco  Common Shares to such holder,  less any amounts  withheld
          pursuant to section 14.2.  If Monaco does not exercise the  Redemption
          Call Right in the manner  described  above, on the Redemption Date the
          holders of the  Exchangeable  Shares  will be  entitled  to receive in
          exchange  therefor  the  redemption  price  otherwise  payable  by the
          Corporation  in connection  with the  redemption  of the  Exchangeable
          Shares pursuant to Article 4 of these Exchangeable Share Provisions.

                                    ARTICLE 8
                                    ---------
                   RETRACTION OF EXCHANGEABLE SHARES BY HOLDER
                   -------------------------------------------

8.1  A holder of Exchangeable  Shares shall be entitled at any time,  subject to
     the  exercise by Monaco of the  Retraction  Call Right and  otherwise  upon
     compliance  with,  and subject  to, the  provisions  of this  Article 8, to
     require the  Corporation  to redeem any or all of the  Exchangeable  Shares
     registered  in the name of such holder for an amount per share equal to two
     times  the  Current  Market  Price  of a  Monaco  Common  Share on the last
     Business Day prior to the Retraction Date (the "Retraction  Price"),  which
     shall be satisfied in full by Monaco  delivering or causing to be delivered
     to such holder two Monaco Common  Shares,  together with, on the designated
     payment date therefor, the full amount of all declared and unpaid dividends
     on any such  Exchangeable  Share held by such holder on any dividend record
     date  which  occurred  prior  to  the  Retraction   Date.  To  effect  such
     redemption, the holder shall present and surrender at the registered office
     of  the  Corporation  the  certificate  or  certificates  representing  the
     Exchangeable  Shares  which  the  holder  desires  to have the  Corporation
     redeem,  together  with such  other  documents  and  instruments  as may be
     required to effect a transfer of Exchangeable Shares under the Act and such
     additional  documents,  instruments  and  payments as the  Corporation  may
     reasonably  require,  and  together  with a duly  executed  statement  (the
     "Retraction Request") in such form as may be acceptable to the Corporation:

     (a)  specifying that the holder desires to have all or any number specified
          therein of the Exchangeable  Shares represented by such certificate or
          certificates (the "Retracted Shares") redeemed by the Corporation;

     (b)  stating  the  Business  Day on which the  holder  desires  to have the
          Corporation  redeem the  Retracted  Shares  (the  "Retraction  Date"),
          provided that the  Retraction  Date shall be not less than 10 Business
          Days  nor more  than 15  Business  Days  after  the date on which  the
          Retraction Request is received by the Corporation and further provided
          that,  in the event  that no such  Business  Day is  specified  by the
          holder in the Retraction Request,  the Retraction Date shall be deemed
          to be the 15th  Business  Day after  the date on which the  Retraction
          Request is received  by the  Corporation  and subject  also to Section
          8.8; and

<PAGE>

                                                                              1M

     (c)  acknowledging  the overriding  right (the  "Retraction Call Right") of
          Monaco  to  purchase  all but not less than all the  Retracted  Shares
          directly  from the holder  and that the  Retraction  Request  shall be
          deemed to be a  revocable  offer by the  holder to sell the  Retracted
          Shares to Monaco in accordance  with the Retraction  Call Right on the
          terms and conditions set out in Section 8.3 hereof.

8.2  Provided  that Monaco has not  exercised the  Retraction  Call Right,  upon
     receipt by the  Corporation  in the manner  specified  in Section  8.1 of a
     certificate or certificates  representing  the number of Retracted  Shares,
     together  with a  Retraction  Request,  and  provided  that the  Retraction
     Request is not  revoked by the  holder in the manner  specified  in Section
     8.7, the  Corporation  shall redeem the Retracted  Shares  effective at the
     close of business on the Retraction  Date and shall comply with Section 8.4
     hereof.  If  only a part  of the  Exchangeable  Shares  represented  by any
     certificate is redeemed (or purchased by Monaco  pursuant to the Retraction
     Call Right), a new certificate for the balance of such Exchangeable  Shares
     shall be issued to the holder at the expense of the Corporation.

8.3  Subject  to  the  provisions  of  this  Article  8,  upon  receipt  by  the
     Corporation of a Retraction  Request,  the  Corporation  shall  immediately
     notify Monaco  thereof and shall provide to Monaco a copy of the Retraction
     Request. In order to exercise the Retraction Call Right, Monaco must notify
     the  Corporation of its  determination  to do so (the "Monaco Call Notice")
     within five Business Days of  notification  to Monaco by the Corporation of
     the receipt by the  Corporation of the Retraction  Request.  If Monaco does
     not so notify the  Corporation  within such five  Business Day period,  the
     Corporation  will  notify the holder as soon as  possible  thereafter  that
     Monaco will not exercise the Retraction  Call Right. If Monaco delivers the
     Monaco Call Notice within such five Business Day period,  and provided that
     the Retraction Request is not revoked by the holder in the manner specified
     in Section 8.7, the Retraction  Request shall  thereupon be considered only
     to be an offer by the  holder  to sell the  Retracted  Shares  to Monaco in
     accordance with the Retraction  Call Right. In such event,  the Corporation
     shall not redeem the Retracted  Shares and Monaco shall  purchase from such
     holder  and such  holder  shall sell to Monaco on the  Retraction  Date the
     Retracted  Shares for a purchase  price (the  "Purchase  Price")  per share
     equal to the Retraction  Price per share,  which shall be satisfied in full
     by the Corporation delivering or causing to be delivered to such holder two
     Monaco Common Shares for each Exchangeable  Share presented and surrendered
     by the holder plus on the designated  payment date therefor,  to the extent
     not paid by the  Corporation on the designated  payment date therefor,  any
     Dividend  Amount.  To the extent that Monaco  pays the  Dividend  Amount in
     respect  of the  Retracted  Shares,  the  Corporation  shall no  longer  be
     obligated  to pay any  declared  and  unpaid  dividends  on such  Retracted
     Shares. For the purpose of completing a purchase pursuant to the Retraction
     Call Right,  on the  Retraction  Date Monaco shall  transfer or cause to be
     issued or  transferred  to the  holder of the  Retracted  Shares the Monaco
     Common  Shares to which such holder is entitled.  Provided  that Monaco has
     complied with the  immediately  preceding  sentence and Section 8.4 hereof,
     the closing of the purchase and sale of the  Retracted  Shares  pursuant to
     the Retraction  Call Right shall be deemed to have occurred as at the close
     of  business  on  the  Retraction  Date  and,  for  greater  certainty,  no
     redemption by the Corporation of such Retracted  Shares shall take place on
     the  Retraction  Date.  In the event that  Monaco does not deliver a Monaco
     Call Notice  within such five  Business Day period,  and provided  that the

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                                                                              1N

     Retraction  Request is not revoked by the holder in the manner specified in
     Section  8.7, the  Corporation  shall  redeem the  Retracted  Shares on the
     Retraction Date and in the manner otherwise contemplated in this Article 8.

8.4  The  Corporation  or  Monaco,  as the case  may be,  shall  deliver  to the
     relevant  holder,  at the address of the holder recorded in the register of
     shareholders  of the  Corporation  for the  Exchangeable  Shares  or at the
     address  specified  in the  holder's  Retraction  Request or by holding for
     pick-up  by  the  holder  at the  registered  office  of  the  Corporation,
     certificates  representing  the Monaco Common Shares (which shares shall be
     fully paid and shall be free and clear of any lien,  claim or  encumbrance)
     registered  in the name of the  holder or in such  other name as the holder
     may request, and, if applicable and on or before the payment date therefor,
     a cheque payable at par at any branch of the bankers of the  Corporation or
     Monaco,  as applicable,  representing  the aggregate  Dividend  Amount,  in
     payment of the total Purchase Price, in the case of a Retraction Call Right
     or a cheque payable at par at any branch of the bankers of the  Corporation
     or Monaco,  as applicable,  representing the aggregate  Dividend Amount and
     Retraction  Price, in the case of a Retraction  Request,  in each case less
     any amounts withheld on account of tax required to be deducted and withheld
     therefrom,  and such delivery of such certificates and cheques on behalf of
     the  Corporation  or by  Monaco,  as the case may be shall be  deemed to be
     payment of and shall  satisfy and  discharge  all  liability  for the total
     Retraction Price or total Purchase Price, as the case may be, to the extent
     that the same is represented by such share  certificates  and cheques (plus
     any tax  deducted  and  withheld  therefrom  and remitted to the proper tax
     authority).

8.5  On and after the close of business on the  Retraction  Date,  the holder of
     the Retracted  Shares shall cease to be a holder of such  Retracted  Shares
     and shall not be  entitled  to  exercise  any of the  rights of a holder in
     respect thereof,  other than the right to receive its proportionate part of
     the total  Retraction  Price or total Purchase  Price,  as the case may be,
     unless upon  presentation  and surrender of certificates in accordance with
     the  foregoing  provisions,  payment of the total  Retraction  Price or the
     total Purchase  Price, as the case may be, shall not be made as provided in
     Section 8.4 hereof,  in which case the rights of such holder  shall  remain
     unaffected until the total Retraction Price or the total Purchase Price, as
     the case may be, has been paid in the manner hereinbefore  provided. On and
     after  the  close  of  business  on  the  Retraction  Date,  provided  that
     presentation  and  surrender  of  certificates  and  payment  of the  total
     Retraction  Price or the total Purchase Price, as the case may be, has been
     made in  accordance  with  the  foregoing  provisions,  the  holder  of the
     Retracted  Shares so redeemed by the  Corporation  or  purchased  by Monaco
     shall thereafter be a holder of the Monaco Common Shares delivered to it.

8.6  Notwithstanding  any other  provision  of this  Article 8, the  Corporation
     shall not be obligated to redeem  Retracted Shares specified by a holder in
     a Retraction Request to the extent that such redemption of Retracted Shares
     would  be  contrary  to  solvency   requirements  or  other  provisions  of
     applicable law. If the Corporation  believes that on any Retraction Date it
     would not be permitted by any of such  provisions  to redeem the  Retracted
     Shares tendered for redemption on such date, and provided that Monaco shall
     not have exercised the Retraction  Call Right with respect to the Retracted
     Shares,  the Corporation shall only be obligated to redeem Retracted Shares

<PAGE>

                                                                              1O

     specified by a holder in a Retraction  Request to the extent of the maximum
     number that may be so redeemed  (rounded  down to a whole number of shares)
     as would not be contrary to such provisions and shall notify the holder and
     the Trustee at least two Business Days prior to the  Retraction  Date as to
     the  number  of  Retracted  Shares  which  will  not  be  redeemed  by  the
     Corporation.  In any case in which the  redemption  by the  Corporation  of
     Retracted  Shares  would be  contrary  to  solvency  requirements  or other
     provisions of applicable law, the Corporation shall redeem Retracted Shares
     in accordance with Section 8.2 of these  Exchangeable Share Provisions on a
     pro rata basis and shall  issue to each  holder of  Retracted  Shares a new
     certificate, at the expense of the Corporation,  representing the Retracted
     Shares not redeemed by the Corporation  pursuant to Section 8.2 hereof.  If
     the Corporation would otherwise be obligated to redeem the Retracted Shares
     pursuant to Section 8.2 of these  Exchangeable  Share Provisions but is not
     obligated to do so as a result of solvency requirements or other provisions
     of applicable law, Monaco shall,  subject to applicable law,  purchase such
     Retracted  Shares  from such  holder on the  Retraction  Date or as soon as
     practicable  thereafter on payment by Monaco to such holder of the Purchase
     Price for each such Retracted Share, all as more  specifically  provided in
     the Exchange Agreement.

8.7  A holder of Retracted  Shares may, by notice in writing given by the holder
     to the  Corporation  before  the  close of  business  on the  Business  Day
     immediately preceding the Retraction Date, withdraw its Retraction Request,
     in which  event such  Retraction  Request  shall be null and void and,  for
     greater  certainty,  the  revocable  offer  constituted  by the  Retraction
     Request to sell the Retracted Shares to Monaco shall be deemed to have been
     revoked.

8.8  Notwithstanding  any other provisions of this Article 8, if exercise of the
     rights  of the  holders  of the  Exchangeable  Shares,  or any of them,  to
     require the Corporation to redeem any Exchangeable  Shares pursuant to this
     Article 8 on any  Retraction  Date would  require the approval of any stock
     exchange on which the Monaco  Common Shares may then be listed for trading,
     that would be  required to be  delivered  to such  holders of  Exchangeable
     Shares in connection with the exercise of such rights;  and it would not be
     practicable (notwithstanding the reasonable endeavours of Monaco) to obtain
     such approvals in time to enable all or any of such Monaco Common Shares to
     be admitted to trading by such exchange when so delivered,  that Retraction
     Date shall, notwithstanding any other date specified or otherwise deemed to
     be specified in any relevant Retraction Request, be deemed for all purposes
     to be the earlier of (i) the second Business Day immediately  following the
     date the approvals  referred to in this Section 8.8 are obtained,  and (ii)
     the date which is 30  Business  Days  after the date on which the  relevant
     Retraction Request is received by the Corporation,  and references in these
     Exchangeable  Share  Provisions to such  Retraction Date shall be construed
     accordingly.

8.9  Notwithstanding  any other  provisions  of this Article 8, a holder may not
     exercise its rights  pursuant to this Article 8 to require the  Corporation
     to redeem any or all of the Exchangeable  Shares  registered in the name of
     such holder to the extent that the issue of Monaco Common Shares  resulting
     on the exercise of such right would require  registration  under the United
     States Securities Act of 1933, as amended.

<PAGE>

                                                                              1P

                                    ARTICLE 9
                                    ---------
                              CERTAIN RESTRICTIONS
                              --------------------

9.1  So long as any of the Exchangeable Shares are outstanding,  the Corporation
     shall not at any time  without,  but may at any time with,  the approval of
     the Holders of the  Exchangeable  Shares given as specified in Section 12.2
     of these Exchangeable Share Provisions:

     (a)  pay any  dividends on the Common  Shares or any other  shares  ranking
          junior to the Exchangeable  Shares, other than stock dividends payable
          in  Common  Shares  or any such  other  shares  ranking  junior to the
          Exchangeable Shares, as the case may be;

     (b)  redeem or purchase or make any capital  distribution in respect of the
          Common Shares or any other shares ranking  junior to the  Exchangeable
          Shares;

     (c)  redeem or purchase any other shares of the Corporation ranking equally
          with the Exchangeable  Shares with respect to the payment of dividends
          or on any liquidation distribution; or

     (d)  issue any shares,  other than  Exchangeable  Shares or Common  Shares,
          which rank  superior to the  Exchangeable  Shares with  respect to the
          payment of dividends or on any liquidation distribution.

     The  restrictions  in  Sections  9.1(a),  (b) and (c) above  shall  only be
     applicable  if  (i)  dividends  have  been  declared  on  the   outstanding
     Exchangeable  Shares in accordance  with Section 3 and (ii) such  dividends
     have not been paid as provided for herein.

                                   ARTICLE 10
                                   ----------
                            PURCHASE FOR CANCELLATION
                            -------------------------

10.1 Subject to applicable law, the Corporation may at any time and from time to
     time purchase for cancellation  all or any part of the Exchangeable  Shares
     by  private   agreement  with  any  holder  of   Exchangeable   Shares  for
     consideration consisting of cash.

                                   ARTICLE 11
                                   ----------
                                  VOTING RIGHTS
                                  -------------

11.1 Except as required by applicable law and by Article 12 hereof,  the Holders
     of the Exchangeable  Shares shall not be entitled as such to receive notice
     of or to attend any meeting of the  shareholders  of the  Corporation or to
     vote at any such meeting.

                                   ARTICLE 12
                                   ----------
                             AMENDMENT AND APPROVAL
                             ----------------------

12.1 The  rights,  privileges,  restrictions  and  conditions  attaching  to the
     Exchangeable  Shares may be added to,  changed or removed but only with the
     approval of the Holders of the  Exchangeable  Shares  given as  hereinafter
     specified.

<PAGE>

                                                                              1Q

12.2 Any  approval  given by the Holders of the  Exchangeable  Shares to add to,
     change or remove any right,  privilege,  restriction or condition attaching
     to the  Exchangeable  Shares or any other matter  requiring the approval or
     consent of the Holders of the  Exchangeable  Shares shall be deemed to have
     been  sufficiently  given if it shall  have been given in  accordance  with
     applicable  law  subject to a minimum  requirement  that such  approval  be
     evidenced by  resolution  passed by not less than  two-thirds  of the votes
     cast on such resolution at a meeting of Holders of Exchangeable Shares duly
     called  and held at which the  Holders  of at least 10% of the  outstanding
     Exchangeable  Shares  at that time are  present  or  represented  by proxy;
     provided  that if at any  such  meeting  Holders  of at  least  10% of such
     outstanding Exchangeable Shares at that time are not present or represented
     by proxy within  one-half  hour after the time  appointed for such meeting,
     then the meeting  shall be  adjourned to such place and time (not less than
     ten days later) as may be designated  by the Chairman of such  meeting.  At
     such  adjourned  meeting  the  Holders of  Exchangeable  Shares  present or
     represented  by proxy  thereat  may  transact  the  business  for which the
     meeting  was  originally  called  and a  resolution  passed  thereat by the
     affirmative  vote of not less than  two-thirds  of the  votes  cast on such
     resolution at such meeting shall  constitute the approval or consent of the
     Holders of the Exchangeable Shares.

                                   ARTICLE 13
                                   ----------
              RECIPROCAL CHANGES IN RESPECT OF MONACO COMMON SHARES
              -----------------------------------------------------

13.1 Each  holder  of an  Exchangeable  Share  acknowledges  that  the  Exchange
     Agreement  provides,  in part,  that the number of Monaco Common Shares for
     which the  Exchangeable  Shares are  exchangeable  shall be  simultaneously
     adjusted on an economically equivalent basis if Monaco:

     (a)  issues or distributes Monaco Common Shares (or securities exchangeable
          for or  convertible  into or carrying  rights to acquire Monaco Common
          Shares)  to  the  holders  of  all or  substantially  all of the  then
          outstanding Monaco Common Shares by way of stock distribution or other
          distribution,  other  than  an  issue  of  Monaco  Common  Shares  (or
          securities  exchangeable for or convertible into or carrying rights to
          acquire  Monaco Common  Shares) to holders of Monaco Common Shares who
          exercise an option to receive  distributions  in Monaco  Common Shares
          (or securities exchangeable for or convertible into or carrying rights
          to  acquire   Monaco  Common   Shares)  in  lieu  of  receiving   cash
          distributions;

     (b)  issues or  distributes  rights,  options or warrants to the holders of
          all or substantially all of the then outstanding  Monaco Common Shares
          entitling  them to subscribe  for or to purchase  Monaco Common Shares
          (or securities exchangeable for or convertible into or carrying rights
          to acquire Monaco Common Shares); or

     (c)  issues or  distributes to the holders of all or  substantially  all of
          the then outstanding Monaco Common Shares:

<PAGE>

                                                                              1R

          (i)  securities of Monaco of any class other than Monaco Common Shares
               (other than securities  convertible  into or exchangeable  for or
               carrying rights to acquire Monaco Common Shares);

         (ii)  rights,  options or  warrants  other than  those  referred  to in
               Section 13.1(b) above; or

        (iii)  evidences of indebtedness of Monaco,

     (d)  subdivides,  redivides or changes the then  outstanding  Monaco Common
          Shares into a greater number of Monaco Common Shares;

     (e)  reduces, combines, consolidates or changes the then outstanding Monaco
          Common Shares into a lesser number of Monaco Common Shares; or

     (f)  reclassifies or otherwise  changes the Monaco Common Shares or effects
          an amalgamation, merger, reorganization or other transaction affecting
          the Monaco Common Shares.

     The  Exchange  Agreement  further  provides,  in part,  that the  aforesaid
     provisions  of the  Exchange  Agreement  shall not be changed  without  the
     approval of the Holders of the Exchangeable Shares given in accordance with
     Section 12.2 of these Exchangeable Share Provisions.

                                   ARTICLE 14
                                   ----------
               ACTIONS BY THE CORPORATION UNDER exchange AGREEMENT
               ---------------------------------------------------

14.1 The Corporation shall take all such actions and do all such things as shall
     be  necessary  or  advisable  to  perform  and  comply  with and to  ensure
     performance  and  compliance by the  Corporation,  Monaco and SVFI with all
     provisions of the Exchange Agreement applicable to the Corporation,  Monaco
     and SVFI  respectively,  in accordance  with the terms  thereof  including,
     without  limitation,  taking all such  actions and doing all such things as
     shall be necessary or advisable to enforce to the fullest  extent  possible
     for the direct benefit of the Corporation all rights and benefits in favour
     of the Corporation under or pursuant to such agreement.

14.2 The Corporation shall not propose, agree to or otherwise give effect to any
     amendment to, or waiver or forgiveness of its rights or obligations  under,
     the  Exchange  Agreement  without  the  approval  of  the  Holders  of  the
     Exchangeable  Shares  given  in  accordance  with  Section  12.2  of  these
     Exchangeable  Share Provisions  other than such amendments,  waivers and/or
     forgiveness as may be necessary or advisable for the purposes of:

     (a)  adding to the covenants of the other parties to such agreement for the
          protection  of the  Corporation  or the  Holders  of the  Exchangeable
          Shares thereunder;

     (b)  making such provisions or  modifications  not  inconsistent  with such
          agreement as may be necessary or desirable  with respect to matters or
          questions  arising  thereunder which, in the good faith opinion of the
          Board of  Directors,  it may be expedient to make,  provided  that the

<PAGE>

                                                                              1S

          Board  of  Directors  shall  be  of  the  good  faith  opinion,  after
          consultation  with counsel,  that such  provisions  and  modifications
          shall  not be  prejudicial  to the  interests  of the  Holders  of the
          Exchangeable Shares; or

     (c)  making such changes in or corrections to such agreement  which, on the
          advice of counsel to the Corporation,  are required for the purpose of
          curing or correcting any ambiguity or defect or inconsistent provision
          or clerical  omission or mistake or manifest error contained  therein,
          provided  that the  Board  of  Directors  shall  be of the good  faith
          opinion,  after  consultation  with  counsel,  that  such  changes  or
          corrections  shall not be  prejudicial to the interests of the Holders
          of the Exchangeable Shares.

                                   ARTICLE 15
                                   ----------
                     LEGEND; CALL RIGHTS; WITHHOLDING RIGHTS
                     ---------------------------------------

15.1 The certificates  evidencing the Exchangeable  Shares shall contain or have
     affixed  thereto  a legend  in form and on terms  approved  by the Board of
     Directors  with  respect to the Exchange  Agreement,  the  Retraction  Call
     Right, the Liquidation Call Right and the Redemption Call Right.

15.2 Each holder of an Exchangeable  Share, by virtue of becoming and being such
     a holder shall be deemed to  acknowledge  the  Retraction  Call Right,  the
     Liquidation  Call Right and the  Redemption  Call Right in favour of Monaco
     and the  overriding  nature  thereof in  connection  with the  liquidation,
     dissolution  or winding up of the  Corporation,  or the any  retraction  or
     redemption  of  Exchangeable  Shares,  as the case may be,  and to be bound
     thereby in favour of Monaco.

15.3 The  Corporation  and Monaco shall be entitled to deduct and withhold  from
     any  dividend  or  consideration   otherwise   payable  to  any  holder  of
     Exchangeable  Shares such amounts as the  Corporation or Monaco is required
     to deduct and withhold  with  respect to such payment  under the Income Tax
     Act (Canada) or any provision of  provincial,  local or foreign tax law, in
     each case,  as amended.  To the extent that amounts are so  withheld,  such
     withheld  amounts  shall be treated for all purposes  hereof as having been
     paid to the  holder of the  Exchangeable  Shares in  respect  of which such
     deduction and withholding was made, provided that such withheld amounts are
     actually remitted to the appropriate  taxing authority.  To the extent that
     the amount so required  or  permitted  to be deducted or withheld  from any
     payment  to a holder  exceeds  the cash  consideration  otherwise,  if any,
     payable to the holder,  the Corporation and Monaco are hereby authorized to
     sell or  otherwise  dispose  of such  portion  of the  consideration  as is
     necessary to provide  sufficient  funds to the Corporation or Monaco as the
     case may be,  to enable it to comply  with such  deduction  or  withholding
     requirement  and the  Corporation or Monaco shall notify the holder thereof
     and remit any unapplied balance of the net proceeds of such sale.

<PAGE>

                                                                              1T

                                   ARTICLE 16
                                   ----------
                                SPECIFIED AMOUNT
                                ----------------

16.1 The amount specified in respect of each Exchangeable Share for the purposes
     of  subsection  191(4) of the  Income Tax Act  (Canada)  shall be an amount
     equal to the fair  market  value of two (2)  Monaco  Common  Shares  on the
     Effective Date.

                                   ARTICLE 17
                                   ----------
                           NO FRACTIONAL ENTITLEMENTS
                           --------------------------

17.1 Notwithstanding  anything  contained in this Agreement  including,  without
     limitation,  Articles 4 or 5, no holder of an  Exchangeable  Share shall be
     entitled to and neither the Corporation nor Monaco shall deliver  fractions
     of Monaco Common  Shares.  Where the  application of the provisions of this
     Agreement,  including, without limitation, Articles 4 and 5 would otherwise
     result in a holder of Exchangeable  Shares receiving a fraction of a Monaco
     Common Share, such holder of Exchangeable  Shares shall only be entitled to
     receive the nearest whole number of Monaco Common Shares.

                                   ARTICLE 18
                                   ----------
                                     NOTICES
                                     -------

18.1 Any notice,  request or other  communication to be given to the Corporation
     by a holder of  Exchangeable  Shares shall be in writing and shall be valid
     and  effective  if given by mail  (postage  prepaid)  or by  telecopy or by
     delivery to the registered  office of the  Corporation and addressed to the
     attention of the President of the Corporation.  Any such notice, request or
     other communication,  if given by mail, telecopy or delivery, shall only be
     deemed to have been given and received upon actual  receipt  thereof by the
     Corporation.

18.2 Any  presentation  and surrender by a holder of Exchangeable  Shares to the
     Corporation of certificates  representing Exchangeable Shares in connection
     with the  liquidation,  dissolution or winding-up of the Corporation or the
     retraction or redemption of Exchangeable Shares shall be made by registered
     mail  (postage  prepaid)  or by delivery  to the  registered  office of the
     Corporation  or to such office as may be specified by the  Corporation,  in
     each case,  addressed to the attention of the President of the Corporation.
     Any such presentation and surrender of certificates shall only be deemed to
     have been made and to be  effective  upon  actual  receipt  thereof  by the
     Corporation.  Any such  presentation and surrender of certificates  made by
     registered mail shall be at the sole risk of the holder mailing the same.

18.3 Any  notice,  request  or other  communication  to be given to a holder  of
     Exchangeable  Shares by or on behalf of the Corporation shall be in writing
     and shall be valid and effective if given by mail  (postage  prepaid) or by
     delivery  to the  address  of  the  holder  recorded  in  the  register  of
     shareholders of the Corporation or, in the event of the address of any such
     holder  not  being so  recorded,  then at the last  known  address  of such
     holder. Any such notice, request or other communication,  if given by mail,
     shall be deemed to have been given and  received on the third  Business Day
     following the date of mailing and, if given by delivery, shall be deemed to
     have been given and received on the date of delivery. Accidental failure or

<PAGE>

                                                                              1U

     omission to give any notice,  request or other communication to one or more
     Holders of  Exchangeable  Shares shall not invalidate or otherwise alter or
     affect any action or  proceeding  to be taken by the  Corporation  pursuant
     thereto.EXHIBIT 10.1
                                                                    ------------

                       RESEARCH AND DEVELOPMENT AGREEMENT
                                     BETWEEN
             ARTANN LABORATORIES INC, ARMEN SARVAZYAN AND PROUROCARE
                                  MEDICAL INC.

Upon the effective date of this agreement:

1.   Armen Sarvazyan shall be named Chief Scientific  Officer(a consultant - non
     employee) of ProUroCare  Medical Inc. Armen Sarvazyan will be provided with
     the information  and access to the research and  development  process and a
     decision making council, sufficient to be effective in his role.

2.   The Intellectual  Property and know-how  resulting from any new advancement
     of the SGDRE  developed,  for example  the  (position  technology)  will be
     assigned to ProUroCare. ProUroCare must ensure that technology transfer and
     participation  of Artann and Armen  Sarvazyan in continuous  development of
     the SGDRE is covered by the current  agreement  and  understanding  between
     ProUroCare  and  Profile,  and in any way will not present a breach of past
     obligations  of Artann and Armen  Sarvazyan to Profile LLC (formerly  Armed
     LLC).

3.   Artann  Laboratories  shall  be  a  research  and  development  partner  to
     ProUroCare  Medical  Inc. In this  relationship  Artann  shall  support and
     further the development of the Sensor Guided DRE product. Specific material
     engagements will be subject to the separate development  agreements between
     Artann and ProUroCare.

4.   In addition,  Artann shall work on other mutually agreed upon  technologies
     and  products in the field of Urology.  The specific  material  engagements
     will be subject  to  separate  development  agreements  between  Artann and
     ProUroCare.  ProUroCare  shall be assigned  the rights to all  intellectual
     properties  resulting from this work in the area related to the SGDRE.  New
     technology  not related to the SGDRE will be addressed by separate  license
     and royalty agreements.

5.   This  Agreement  shall have an initial  term of 3 years and can be extended
     for a similar term upon mutual consent of all parties to this agreement.

CASH COMPENSATION

An  amount  of  $250,000  shall be paid to  Artann  for the  engagement  in this
research and  development  agreement  and the  assignment  to  ProUroCare of all
patents that  encompasses  new IP developed with respect to the SGDRE.  Payments
shall be made in accordance  with the following  schedule of  performance  based
events:

     o    Effective date (signing) of this agreement                    $ 50,000

     o    Shipment of the SGDRE  Systems in accordance
          with the  Development  Agreement  signed  by
          both   parties.   A  bonus  of  10%  of  the
          milestone  payment  per month  for  delivery
          ahead of  schedule  will be added.  A 10% of
          the  milestone  payment  per month  late fee
          shall be deducted.  The milestone payment is
          due in full if the Development  Agreement is
          terminated by ProUroCare.                                    $ 100,000

<PAGE>

     o    Filing of the patent                                          $ 50,000

     o    Issuance  of  the  patent  (patent  will  be
          assigned to ProUroCare)                                       $ 50,000

WARRANTS

500,000  (five year term)  warrants  shall be issued at the market  price at the
time of issue or $2.00, whichever is lower. The warrants will be vested over the
period of three years according to the following schedule:

     o    100,000 upon execution of this agreement;

     o    200,000 upon  shipment of SGDRE Systems  according to the  Development
          Agreement.  The  200,000  warrant  payment  is  due  in  full  if  the
          Development Agreement is terminated by ProUroCare;

     o    100,000 one year anniversary of the execution date of this agreement.

     o    100,000 two year anniversary of the execution date of this agreement.

The issuance of the last two hundred  warrants is  contingent on the delivery of
clinical units by Minnetronix per the development agreement with ProUroCare.

Note
Warrants will be issued in two names:
90 % in name of Artann Laboratories
10% in name of Vlada International

ARTANN LABORATORIES, INC.               ARMEN SARVAZYAN

By:  /s/Armen Sarvazyan                 By: /s/ Armen Sarvazyan
  ------------------------                -------------------------

Its: Chief Scientist
   -----------------------

PROUROCARE MEDICAL INC.

By: /s/Michael P. Grossman
  ------------------------

Its: President & CEO
   -----------------------

                                       2

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