Document:

separationagremment.htm

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SEPARATION
      AND DISTRIBUTION AGREEMENT

     

    by
      and among

     

    ENTERTAINMENT
      SUBCO AB, INC.,

     

    ALLIANCE
      DISTRIBUTION HOLDINGS S.ÀR.L,

     

    4414608
      CANADA INC.,

     

    3217920
      NOVA SCOTIA COMPANY,

     

    4437497
      CANADA INC.,

     

    4437641
      CANADA INC.,

     

    CW
      MEDIA HOLDINGS INC.,

     

    ALLIANCE
      ATLANTIS EQUICAP CORPORATION,

     

    4414641
      CANADA INC.,

     

    and

     

    CW
      MEDIA INC.

     

    

     

    Dated
      as of August 15, 2007

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

     

                                                                 Page

     

    
      	
              ARTICLE
                I

            	
               

            	 
	
                  DEFINITIONS
                AND
                INTERPRETATION

            	 	 
	
                  Section
                1.1.

            	
              General

            	
                  2

            
	
                  Section
                1.2.

            	
              References;
                Interpretation

            	
                    38

            
	
                  Section
                1.3.

            	
              Schedules
                and Exhibits

            	
                    38

            
	
              ARTICLE
                II

            	
               

            	 
	
                  THE
                SEPARATION

            	 	 
	
                  Section
                2.1.

            	
              General

            	
                    40

            
	
                  Section
                2.2.

            	
              Transfer
                of Assets

            	
                    41

            
	
                  Section
                2.3.

            	
              Assumption
                and Satisfaction of Liabilities; Litigation

            	
                    43

            
	
                  Section
                2.4.

            	
              Intercompany
                Accounts and Arrangements

            	
                    44

            
	
                  Section
                2.5.

            	
              Limitation
                of Liability

            	
                    44

            
	
                  Section
                2.6.

            	
              Transfers
                Not Effected On or Prior to the Effective Time; Transfers Deemed
                Effective
                as of the Effective Time

            	
                          

                    45

            
	
                  Section
                2.7.

            	
              Conveyancing
                and Assumption Instruments

            	
                    47

            
	
                  Section
                2.8.

            	
              Further
                Assurances

            	
                    47

            
	
                  Section
                2.9.

            	
              Novation
                of Liabilities

            	
                    48

            
	
                  Section
                2.10.

            	
              Guarantees;
                Letters of Credit

            	
                    49

            
	
                  Section
                2.11.

            	
              Tax
                Liabilities

            	
                    50

            
	
                  Section
                2.12.

            	
              Disclaimer
                of Representations and Warranties

            	
                    51

            
	
                  Section
                2.13.

            	
              Effectiveness
                of Transfers

            	
                    52

            
	
              ARTICLE
                III

            	 	 
	
                  CERTAIN
                ACTIONS AT OR PRIOR TO THE TRANSFERS

            	 	 
	
                  Section
                3.1.

            	
              Resignations

            	
                    52

            
	
                  Section
                3.2.

            	
              Ancillary
                Agreements

            	
                    52

            
	
              ARTICLE
                IV

            	 	 
	
                  CERTAIN
                COVENANTS

            	 	 
	
                  Section
                4.1.

            	
              No
                Solicit

            	
                    52

            
	
                  Section
                4.2.

            	
              Corporate
                Names and Other Parties’ Trademarks

            	
                    53

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

              

                  
      
      

                            Page              
    

      

    

    

    
      	
                  Section
                4.3.

            	
              Auditors
                and Audits; Annual and Quarterly Financial Statements and
                Accounting

            	
                    53

            
	
                  Section
                4.4.

            	
              Administration
                of Separation Expenses

            	
                    54

            
	
                  Section
                4.5.

            	
              Cooperation

            	
                    55

            
	
                  Section
                4.6.

            	
              Tax
                Step-Up

            	
                    55

            
	
              ARTICLE
                V

            	 	 
	
                  EMPLOYEE
                MATTERS

            	 	 
	
                  Section
                5.1.

            	
              General

            	
                    55

            
	
                  Section
                5.2.

            	
              Savings
                Plans

            	
                    57

            
	
                  Section
                5.3.

            	
              Health
                and Welfare Plans

            	
                    58

            
	
                  Section
                5.4.

            	
              Continuation
                of Employment

            	
                    58

            
	
                  Section
                5.5.

            	
              Individual
                Employee Agreements

            	
                    59

            
	
                  Section
                5.6.

            	
              Post-Effective
                Time Bonus Awards

            	
                    59

            
	
                  Section
                5.7.

            	
              Severance
                Benefits

            	
                    59

            
	
                  Section
                5.8.

            	
              Vacation

            	
                    59

            
	
                  Section
                5.9.

            	
              COBRA/HIPPA

            	
                    59

            
	
              ARTICLE
                VI

            	 	 
	
                  INDEMNIFICATION

            	 	 
	
                  Section
                6.1.

            	
              Release
                of Pre-Transfer Claims

            	
                    60

            
	
                  Section
                6.2.

            	
              Indemnification

            	
                    62

            
	
                  Section
                6.3.

            	
              Procedures
                for Indemnification

            	
                    62

            
	
                  Section
                6.4.

            	
              Cooperation
                in Defense and Settlement

            	
                    64

            
	
                  Section
                6.5.

            	
              Indemnification
                Payments

            	
                    65

            
	
                  Section
                6.6.

            	
              Contribution

            	
                    65

            
	
                  Section
                6.7.

            	
              Indemnification
                Obligations Net of Insurance Proceeds and Other Amounts

            	
                    65

            
	
                  Section
                6.8.

            	
              Additional
                Matters; Survival of Indemnities

            	
                    68

            
	
              ARTICLE
                VII

            	 	 
	
                  CONFIDENTIALITY;
                ACCESS TO INFORMATION

            	 	 
	
                  Section
                7.1.

            	
              Corporate
                Information Repository

            	
                    68

            
	
                  Section
                7.2.

            	
              Access
                to Information

            	
                    68

            
	
                  Section
                7.3.

            	
              Disposition
                of Information

            	
                    68

            
	
                  Section
                7.4.

            	
              Witness
                Services

            	
                    70

            
	
                  Section
                7.5.

            	
              Reimbursement;
                Other Matters

            	
                    70

            
	
                  Section
                7.6.

            	
              Confidentiality

            	
                    70

            
	
                  Section
                7.7.

            	
              Privileged
                Matters

            	
                    71

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

              

                  
      
      

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                  Section
                7.8.

            	
              Ownership
                of Information

            	
                    73

            
	
                  Section
                7.9.

            	
              Other
                Agreements

            	
                    73

            
	
              ARTICLE
                VIII

            	 	 	 
	
                  DISPUTE
                RESOLUTION

            	 	 	 
	
                  Section
                8.1.

            	
              Negotiation

            	
                     74

            	 
	
                  Section
                8.2.

            	
              Arbitration

            	
                     74

            	 
	
                  Section
                8.3.

            	
              Waiver
                of Time-Based Defenses

            	
                     75

            	 
	
                  Section
                8.4.

            	
              Continuity
                of Service and Performance

            	
                     75

            	 
	
                  Section
                8.5.

            	
              Costs

            	
                     75

            	 
	
              ARTICLE
                IX

            	 	 	 
	
                  INSURANCE

            	 	 	 
	
                  Section
                9.1.

            	
              Policies
                and Rights Included Within Assets

            	
                     75

            	 
	
                  Section
                9.2.

            	
              Claims
                Made Tail Policies

            	
                     76

            	 
	
                  Section
                9.3.

            	
              Occurrence
                Based Policies

            	
                     76

            	 
	
                  Section
                9.4.

            	
              Administration;
                Other Matters

            	
                     77

            	 
	
                  Section
                9.5.

            	
              Cooperation

            	
                     78

            	 
	
              ARTICLE
                X

            	 	 	 
	
                  MISCELLANEOUS

            	 	 	 
	
                  Section
                10.1.

            	
              Complete
                Agreement; Construction

            	
                     79

            	 
	
                  Section
                10.2.

            	
              Counterparts

            	
                     79

            	 
	
                  Section
                10.3.

            	
              Survival
                of Agreements

            	
                     79

            	 
	
                  Section
                10.4.

            	
              Expenses

            	
                     79

            	 
	
                  Section
                10.5.

            	
              Notices

            	
                     79

            	 
	
                  Section
                10.6.

            	
              Waivers

            	
                     81

            	 
	
                  Section
                10.7.

            	
              Amendments

            	
                     81

            	 
	
                  Section
                10.8.

            	
              Assignment

            	
                     81

            	 
	
                  Section
                10.9.

            	
              Successors
                and Assigns

            	
                     82

            	 
	
                  Section
                10.10.

            	
              Certain
                Termination and Amendment Rights

            	
                     82

            	 
	
                  Section
                10.11.

            	
              Payment
                Terms

            	
                     82

            	 
	
                  Section
                10.12.

            	
              No
                Circumvention

            	
                     83

            	 
	
                  Section
                10.13.

            	
              Subsidiaries

            	
                     83

            	 
	
                  Section
                10.14.

            	
              Third-Party
                Beneficiaries

            	
               

            	       83	 
	
                  Section
                10.15.

            	
              Title
                and Headings

            	
               

            	       83 	 
	
                  Section
                10.16.

            	
              Exhibits
                and Schedules

            	
               

            	       83         	 
	
                  Section
                10.17.

            	
              Governing
                Law

            	
               

            	       83     	 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

                

                    
      
      

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                  Section
                10.18.

            	
              Consent
                to Jurisdiction

            	
                     83

            
	
                  Section
                10.19.

            	
              Specific
                Performance

            	
                     84

            
	
                  Section
                10.20.

            	
              Bulk
                Sales Laws

            	
                     84

            
	
                  Section
                10.21.

            	
              Severability

            	
                     84

            
	
                  Section
                10.22.

            	
              Force
                Majeure

            	
                     84

            
	
                  Section
                10.23.

            	
              Interpretation

            	
                     85

            
	
                  Section
                10.24.

            	
              No
                Duplication; No Double Recovery

            	
                     85

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SEPARATION
      AND DISTRIBUTION AGREEMENT

     

    SEPARATION
      AND DISTRIBUTION AGREEMENT (this “Agreement”), dated as of August 15,
      2007 (the “Closing Date”, by and among Entertainment Subco AB, Inc.
      (“Entertainment”), Alliance Distribution Holdings S.àr.l
      (“International”), 4414608 Canada Inc. (“Movie”), 3217920 Nova
      Scotia Company (“Movie Finco”),CW Media Holdings Inc. (“STV”),
      4437497 Canada Inc. (“Production”), 4437641 Canada Inc.
      (“Propinquity”), Alliance Atlantis Equicap Corporation
      (“ShelterCo”), 4414641 Canada Inc. (“CanCo”), CW Media Inc., a
      wholly owned subsidiary of CanCo and those parties listed on Schedule 1
      (the “Additional Parties”) (“CW Media”, and together with
      Entertainment, International, Movie, Movie Finco, Production, Propinquity,
      STV,
      ShelterCo, CW Media and the Additional Parties, the “Parties” and each, a
“Party”).

     

    W
      I T N E S S E T H:

     

    WHEREAS,
      on August 15, 2007, AA Acquisition Corp. (“AcquireCo”) acquired (the
“Acquisition”) all of the shares in the capital of Alliance Atlantis
      Communications Inc., a corporation existing under the laws of Canada (the
“Predecessor”),  pursuant to and on the terms and conditions
      set forth in that certain Arrangement Agreement, dated as of January 10, 2007
      (as amended), by and between AcquireCo and the Predecessor (the “Arrangement
      Agreement”);

     

    WHEREAS,
      certain restructuring transactions (the “Restructuring”) in connection
      with the Predecessor have taken place and certain other restructuring
      transactions will take place, all as set forth in steps 33 to 68.02, 111 to
      134.1 and 135.2 to 135.4 of the Steps Memorandum attached as Exhibit A hereto
      (the “Steps Memo”) and pursuant to the applicable Ancillary
      Agreements;

     

    WHEREAS,
      as part of the Restructuring, AcquireCo has been amalgamated with the
      Predecessor and certain other corporations to continue as CW Media;

     

    WHEREAS,
      immediately following the Acquisition and the Restructuring, CW Media, acting
      through its direct and indirect Subsidiaries, will continue to conduct a number
      of businesses, including (i) the Entertainment Business, (ii) the International
      Distribution Business, (iii) the Movie Distribution Business, (iv) the
      Production Business (as defined herein), (v) the Propinquity Business, (vi)
      the
      Specialty Television Business, and (vii) the Shelter Business (each, a
“Business”, and together, the “Businesses”);

     

    WHEREAS,
      the Board of Directors of CW Media has determined that it is appropriate,
      desirable and in the best interests of CW Media and its shareholder to separate
      the operations of CW Media into seven separate companies as set forth in the
      Steps Memo, including the New Entities, each of which shall own and conduct,
      directly or indirectly, its Corresponding Business;

     

    WHEREAS,
      in order to effect such separation, the Board of Directors of CW Media has
      determined that it is appropriate, desirable and in the best interests of CW
      Media and its shareholder to enter into a series of transactions as set forth
      in
      steps 136, 137, 139 to 144, 145 to 148 and 153 to 161 of the Steps Memo and
      pursuant to the applicable Ancillary Agreements, whereby one or more members
      of
      each Group will, collectively, own all of such Group’s

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    Corresponding
      Assets and assume (or retain) all of such Group’s Corresponding Liabilities, and
      the STV Group will own all of the equity and debt interests in CanCo and will
      indirectly own all of the equity and debt interests in CW Media (such
      transactions, as they may be amended or modified from time to time,
      collectively, the “Plan of Separation”);

     

    WHEREAS,
      each of the Parties has determined that it is necessary and desirable, prior
      to
      the Effective Time (as defined herein), to allocate and transfer to the
      applicable Group those Assets, and to allocate and assign to the applicable
      Party or its Group responsibility for those Liabilities, in respect of the
      activities of the Corresponding Businesses of such Group and to allocate among
      the Groups those Assets and Liabilities in respect of other businesses and
      activities of CW Media and its current and former Subsidiaries;

     

    WHEREAS,
      each of the Parties has determined that it is necessary and desirable to set
      forth the principal corporate transactions required to effect the Plan of
      Separation and to set forth other agreements that will govern certain other
      matters following the Effective Time.

     

    NOW,
      THEREFORE, in consideration of the foregoing and the mutual agreements,
      provisions and covenants contained in this Agreement, the Parties hereby agree
      as follows:

     

    ARTICLE
      I

     

    

     

    DEFINITIONS
      AND INTERPRETATION

     

    Section
      1.1.                                General.  As
      used in this Agreement, the following terms shall have the following
      meanings:

     

    (1)           “AA
      Benefit Plans” have the meaning set forth in Schedule
      5.1(b).

     

    (2)           “AA
      DPSP” shall have the meaning set forth in Schedule
      5.1(b).

     

    (3)           “AA
      Group RRSP” shall have the meaning set forth in Schedule
      5.1(b).

     

    (4)           “AA
      Plans” shall have the meaning set forth in Section 5.1(b).

     

    (5)           “AA
      Savings Plan” shall have the meaning set forth in Schedule
      5.1(b).

     

    (6)           “AcquireCo”
      shall have the meaning set forth in the recitals.  References to
      AcquireCo in this Agreement may also be read as references to CW Media, as
      successor to AcquireCo by amalgamation.

     

    (7)           “Action”
      shall mean any demand, action, claim, suit, countersuit, arbitration, inquiry,
      subpoena, proceeding or investigation by or before any Governmental Entity
      or
      any arbitration or mediation tribunal.

     

    (8)           “Additional
      Parties” shall have the meaning set forth in the preamble.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (9)           “Affiliate”
      shall mean, when used with respect to a specified Person, a Person that directly
      or indirectly, through one or more intermediaries, controls, is controlled
      by,
      or is under common control with such specified Person.  For the
      purposes of this definition, “control”, when used with respect to any specified
      Person, shall mean the possession, directly or indirectly, of the power to
      direct or cause the direction of the management and policies of such Person,
      whether through the ownership of voting securities or other interests, by
      Contract or otherwise.  It is expressly agreed that no Party or member
      of any Group shall be deemed to be an Affiliate of another Party or member
      of
      such other Party’s Group by reason of having one or more directors or officers
      in common.

     

    (10)           “Agreement
      Disputes” shall have the meaning set forth in Section 8.1.

     

    (11)           “Ancillary
      Agreements” shall mean all of the written Contracts, instruments,
      assignments or other arrangements (other than this Agreement) entered into
      in
      connection with the transactions contemplated hereby, including those listed
      on
Schedule 1.1(11).

     

    (12)           “Arrangement
      Agreement” shall have the meaning set forth in the recitals.

     

    (13)           “Assets”
      shall mean assets, properties, claims and rights (including goodwill), wherever
      located (including in the possession of vendors or other third parties or
      elsewhere), of every kind, character and description, whether real, personal
      or
      mixed, tangible, intangible or contingent, in each case whether or not recorded
      or reflected or required to be recorded or reflected on the Records or financial
      statements of any Person, including the following:

     

    (i)           all
      accounting and other legal and business books, records, ledgers and files
      whether printed, electronic or written;

     

    (ii)           all
      apparatuses, computers and other electronic data processing and communications
      equipment, fixtures, machinery, equipment, furniture, office equipment,
      automobiles, trucks, aircraft and other transportation equipment, special and
      general tools, test devices, prototypes and models and other tangible personal
      property;

     

    (iii)           all
      inventories of products, goods, materials, parts, raw materials and
      supplies;

     

    (iv)           all
      interests in real property of whatever nature, including easements, whether
      as
      owner, mortgagee or holder of a Security Interest in real property, lessor,
      sublessor, lessee, sublessee or otherwise;

     

    (v)           all
      interests in any shares or other equity interests of any Subsidiary or any
      other
      Person, all bonds, notes, debentures or other securities issued by any
      Subsidiary or any other Person, all loans, advances or other extensions of
      credit or capital contributions to any Subsidiary or any other Person and all
      other investments in securities of any Person;

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (vi)           all
      license Contracts, leases of personal property, open purchase orders for raw
      materials, supplies, parts or services, unfilled orders for the manufacture
      and
      sale of products and other Contracts or commitments;

     

    (vii)           the
      benefit of all deposits, letters of credit and performance and surety
      bonds;

     

    (viii)                      all
      written (including in electronic form) technical information, data,
      specifications, research and development information, engineering drawings
      and
      specifications, operating and maintenance manuals, and materials and analyses
      prepared by consultants and other third parties;

     

    (ix)           all
      Intellectual Property;

     

    (x)           all
      Software;

     

    (xi)           all
      cost information, sales and pricing data, customer prospect lists, supplier
      records, customer and supplier lists, customer and vendor data, correspondence
      and lists, product data and literature, artwork, design, development and
      business process files and data, vendor and customer drawings, specifications,
      quality records and reports and other books, records, studies, surveys, reports,
      plans and documents;

     

    (xii)           all
      prepaid expenses, trade accounts and other accounts and notes
      receivables;

     

    (xiii)                      all
      rights under Contracts, all claims or rights against any Person, choses in
      action or similar rights, whether accrued or contingent;

     

    (xiv)                      all
      rights under insurance policies and all rights in the nature of insurance,
      indemnification or contribution;

     

    (xv)           all
      licenses, permits, approvals and authorizations which have been issued by any
      Governmental Entity;

     

    (xvi)                      all
      cash or cash equivalents, bank accounts, lock boxes and other deposit
      arrangements;

     

    (xvii)                      all
      interest rate, currency, commodity or other swap, collar, cap or other hedging
      or similar Contracts or arrangements; and

     

    (xviii)                      all
      Policies.

     

    (14)           “Assume”
      shall have the meaning set forth in Section
      2.3 and “Assumption” shall have a corresponding
      meaning.

     

    (15)           “Business”
      shall have the meaning set forth in the recitals.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (16)           “Business
      Day” means any day that is not a Saturday, a Sunday or any other day on
      which banks are required or authorized by Law to be closed in the City of
      Toronto, the City of Winnipeg or the City of New York.

     

    (17)           “Business
      Entity” shall mean any corporation, partnership, limited liability company
      or other entity which may legally hold title to Assets.

     

    (18)           “Cash”
      means cash or cash equivalents as determined in accordance with Canadian
      generally accepted accounting principles.

     

    (18A)                      “Closing
      Agenda” means the Work Plan and Closing Agenda dated August 15, 2007 setting
      out the documents to be tabled or exchanged in connection with the transactions
      contemplated by the Steps Memo.

     

    (19)           “Closing
      Date” shall have the meaning set forth in the preamble.

     

    (20)           “Code”
      shall mean the United States Internal Revenue Code of 1986, as
      amended.

     

    (21)           “Confidential
      Information” shall mean all Information, data or material, including (i)
      earnings reports and forecasts, (ii) macro-economic reports and forecasts,
      (iii)
      business plans, (iv) general market evaluations and surveys and (v) financing
      and credit-related information, (vi) specifications, ideas and concepts for
      products and services, (vii) quality assurance policies, procedures and
      specifications, (viii) customer information, (ix) Software, (x) training
      materials and information and (xi) all other know-how, methodology, procedures,
      techniques and trade secrets related to design, development and operational
      processes, in each case concerning a Party and/or its Subsidiaries which, prior
      to or following the Effective Time, has been disclosed by a Party or its
      Subsidiaries to another Party or its Subsidiaries, in written, oral (including
      by recording), electronic, or visual form to, or otherwise has come into the
      possession of, the other, including pursuant to the access provisions of Section 7.1 or Section
      7.2 or any other provision of this
      Agreement (except to the extent that such information can be shown to have
      been
      (i) in the public domain through no fault of such Party or its Subsidiaries
      or
      (ii) lawfully acquired from other sources by such Party or its Subsidiaries
      to
      which it was furnished; provided, however, in the case of clause
      (ii) that, to the furnished Party’s knowledge, such sources did not provide such
      information in breach of any confidentiality obligations).

     

    (22)           “Consents”
      shall mean any consents, waivers or approvals from, or notification requirements
      to, any Person other than a Governmental Entity.

     

    (23)           “Continuing
      Arrangements” shall mean those arrangements set forth on Schedule
      1.1(23).

     

    (24)           “Contract”
      shall mean any agreement, contract, obligation, indenture, instrument, lease,
      promise, arrangement, commitment or undertaking (whether written or oral and
      whether express or implied) other than a Plan.

     

    (25)           “Conveyancing
      and Assumption Instruments” shall mean, collectively, the various Contracts
      and other documents entered into to effect the Transfer of Assets and
      the

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    Assumption
      of Liabilities in the manner contemplated by this Agreement and the Plan of
      Separation, or otherwise relating to, arising out of or resulting from the
      transactions contemplated by this Agreement, which shall be, as applicable,
      in
      substantially the forms as the applicable Parties thereto reasonably
      agree.

     

    (26)           “Corporate
      Division” shall mean (i) the business and operations of the “Corporate and
      Other” segment of CW Media as described in the Predecessor’s Annual Information
      Form dated March 5, 2007 for the fiscal year ended December 31, 2006, as filed
      with Canadian securities regulatory authorities, (ii) any other business
      conducted primarily through Assets of CW Media prior to the Effective Time
      that
      are not Corresponding Assets of any Group and (iii) any corporate or services
      functions for the shared benefit of any or all of the Businesses (and/or
      Groups), including Human Resources, Payroll, Procurement, Facilities, Financial
      Accounting and Management, Information Technology Services, Security,
      Telecommunications, Accounts Payable, Treasury, Tax, Risk Management,
      Compliance, Legal, Public and Regulatory Affairs, Investor Relations, Corporate
      Communications, Internal Corporate Communications, Visual Communications, and
      Media Services, to the extent that they are such shared functions.

     

    (27)           “Corporate
      Information” shall mean any Information relating to the Corporate Division
      prior to the Closing Date.

     

    (28)           “Corporate
      Information Repository” shall mean the archives of Corporate Information, in
      electronic and paper based form, as applicable.

     

    (29)           “Corporate
      Retention and Severance Liabilities” shall mean all Liabilities in respect
      of (i) bonuses accrued for the period in the Predecessor’s financial year up to
      and including the Closing Date for the employees listed in Schedule 1.1(29), (ii) the written retention agreements between
      the Predecessor and its Subsidiaries and any such employees, and (iii) the
      termination or alleged termination of any such employees that occurs prior
      to or
      as a result of or in connection with or following the consummation of the
      transactions contemplated by this Agreement, including any amounts required
      to
      be paid (including any payroll or other Taxes), and the costs of providing
      benefits and bonuses, including bonuses accrued up to the date of termination,
      under any applicable severance, separation, redundancy, termination or similar
      plan, program, practice, contract, agreement, law or regulation (such benefits
      to include any medical or other welfare benefits, outplacement benefits or
      any
      other benefits under a Plan, accrued vacation and Taxes).

     

    (30)           “Corresponding
      Assets” shall mean (i) with respect to Entertainment or the Entertainment
      Group, the Entertainment Assets, (ii) with respect to International or the
      International Group, the International Distribution Assets, (iii) with respect
      to Movie or the Movie Group, the Movie Distribution Assets, (iv) with respect
      to
      Production or the Production Group, the Production Assets, (v) with respect
      to
      Propinquity or the Propinquity Group, the Propinquity Assets, (vi) with respect
      to STV or the STV Group, the Specialty Television Assets, and (vii) with respect
      to ShelterCo or the Shelter Group, the Sheltered Assets.

     

    (31)           “Corresponding
      Benefit Plans” shall have the meaning set forth in Section 5.3(a).

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (32)           “Corresponding
      Business” shall mean (i) with respect to Entertainment or the Entertainment
      Group, the Entertainment Business, (ii) with respect to International or the
      International Group, the International Distribution Business, (iii) with respect
      to Movie or the Movie Group, the Movie Distribution Business, (iv) with respect
      to Production or the Production Group, the Production Business, (v) with respect
      to Propinquity or the Propinquity Group, the Propinquity Business, (vi) with
      respect to STV or the STV Group, the Specialty Television Business, and (vii)
      with respect to ShelterCo or the Shelter Group, the Shelter
      Business.

     

    (33)           “Corresponding
      DPSP” shall have the meaning set forth in Section 5.2(a).

     

    (34)           “Corresponding
      Employees” shall mean (i) with respect to Entertainment or the Entertainment
      Group, the Entertainment Employees, (ii) with respect to International or the
      International Group, the International Employees, (iii) with respect to Movie
      or
      the Movie Group, the Movie Employees, (iv) with respect to Production or the
      Production Group, the Production Employees, (v) with respect to Propinquity
      or
      the Propinquity Group, the Propinquity Employees, and (vi) with respect to
      STV
      or the STV Group, the STV Employees.

     

    (35)           “Corresponding
      Former Employees” shall mean (i) with respect to Entertainment or the
      Entertainment Group, the Former Entertainment Employees, (ii) with respect
      to
      International or the International Group, the Former International Employees,
      (iii) with respect to Movie or the Movie Group, the Former Movie Employees,
      (iv)
      with respect to Production or the Production Group, the Former Production
      Employees, (v) with respect to Propinquity or the Propinquity Group, the Former
      Propinquity Employees, and (vi) with respect to STV or the STV Group, the Former
      STV Employees.

     

    (36)           “Corresponding
      Group” shall mean (i) with respect to the Entertainment Business, the
      Entertainment Group, (ii) with respect to the International Distribution
      Business, the International Group, (iii) with respect to the Movie Distribution
      Business, the Movie Group, (iv) with respect to the Production Business, the
      Production Group, (v) with respect to the Propinquity Business, the Propinquity
      Group, (vi) with respect to the Specialty Television Business, the STV Group
      and
      (vii) with respect to the Shelter Business, the Shelter Group.

     

    (37)           “Corresponding
      Group RRSP” shall have the meaning set forth in Section 5.2(b).

     

    (38)           “Corresponding
      Indemnitee” shall mean, with respect to any New Entity (or its Group), each
      member of such New Entity’s Group and each of their Affiliates and each member
      of such Group’s and their respective Affiliates’ respective directors, officers,
      employees and agents and each of the heirs, executors, successors and assigns
      of
      any of the foregoing.

     

    (39)           “Corresponding
      Liabilities” shall mean (i) with respect to Entertainment or the
      Entertainment Group, the Entertainment Liabilities, (ii) with respect to
      International or the International Group, the International Distribution
      Liabilities, (iii) with respect to Movie or the Movie Group, the Movie
      Distribution Liabilities, (iv) with respect to Production or the Production
      Group, the Production Liabilities, (v) with respect to Propinquity or the
      Propinquity Group, the Propinquity Liabilities, (vi) with respect to STV or
      the
      STV Group, the Specialty

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Television
      Liabilities, and (vii) with respect to ShelterCo or the Shelter Group, the
      Sheltered Liabilities.

     

    (40)           “Corresponding
      Savings Plan” shall have the meaning set forth in Section 5.2(b).

     

    (41)           “Corresponding
      Shared Policies” shall mean, with respect to any New Entity (or its Group),
      all Policies, current or past, that relate to the Corresponding Business of
      such
      New Entity, other than Policies that are Corresponding Assets of such New
      Entity.

     

    (42)           “CW
      Media” shall have the meaning set forth in the preamble and for the
      avoidance of doubt shall include, where applicable, AcquireCo and other
      predecessors to CW Media.

     

    (43)           “D&O
      Tail Policies” shall have the meaning set forth in Section 9.2(a).

     

    (44)           “Dispute
      Notice” shall have the meaning set forth in Section 8.1.

     

    (45)           “DPSP”
      shall mean a “deferred profit sharing plan” (as defined in the Income Tax
      Act (Canada)).

     

    (46)           “Effective
      Time” shall mean the time that is immediately after the completion of the
      transaction described in Step 161 in the Steps Memo.

     

    (47)           “Employee
      Agreements” shall have the meaning set forth in Section 5.4.

     

    (48)           “Entertainment”
      shall have the meaning set forth in the preamble.

     

    (49)           “Entertainment
      Assets” shall mean:

     

    (i)           the
      ownership interests in all Business Entities in the Entertainment
      Group;

     

    (ii)           all
      Entertainment Contracts, any rights or claims arising thereunder, and any other
      rights or claims or contingent rights or claims primarily relating to or arising
      from any Entertainment Asset or the Entertainment Business;

     

    (iii)           subject
      to Article IX, any rights of any member of
      the Entertainment Group under any Policies, including any rights thereunder
      arising after the Closing Date in respect of any Policies that are occurrence
      policies;

     

    (iv)           any
      and all Assets owned or held immediately prior to the commencement of the
      implementation of the Plan of Separation by CW Media or any of its Subsidiaries
      (including, prior to the Effective Time, by any Group) (A) that comprise or
      comprised or relate or related primarily to the Entertainment Business or (B)
      that comprise or comprised the

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Corporate
      Division and either (x) are or were more related to the Entertainment Business
      than the other Businesses, or (y) for which the Entertainment Business has
      or
      had principal use or responsibility;

     

    (v)           the
      Assets set forth on Schedule 1.1(49)(v)
      and
      any and all Assets that are expressly contemplated by this Agreement or any
      Ancillary Agreement as Assets which have been or are to be Transferred to
      Entertainment or any other member of the Entertainment Group;

     

    (vi)           any
      and all furnishings and office equipment located at a physical site of which
      the
      ownership or leasehold interest is being Transferred to Entertainment or a
      Subsidiary of Entertainment; provided, that personal computers shall be
      Transferred to the Party or Subsidiary of the Party that, following the
      Effective Time, employs the applicable employee who, prior to the Effective
      Time, used such personal computer; and

     

    (vii)           any
      Cash owned by any member of the Entertainment Group that is not a wholly-owned
      Subsidiary of Entertainment.

     

    Notwithstanding
      the foregoing, the Entertainment Assets shall not include (i) any Cash, except
      as provided in clause (vi) of this Section 1.1(49), or (ii)
      any Assets that are
      expressly contemplated by this Agreement or any Ancillary Agreement (or the
      Schedules hereto or thereto) as Assets to be retained by or Transferred to
      any
      member of a Group other than the Entertainment Group.

     

    In
      the
      event of any inconsistency or conflict which may arise in the application or
      interpretation of any of the foregoing provisions, for the purpose of
      determining what is and is not an Entertainment Asset, any item explicitly
      included on a Schedule referred to in this Section
      1.1(49) shall take priority over any provision of the text
      hereof.

     

    (50)           “Entertainment
      Business” shall mean (i) the business of producing and distributing the
“CSI” television programming conducted primarily through the members of the
      Entertainment Group prior to the Effective Time and (ii) the businesses and
      operations of Business Entities acquired or established by or for the
      Entertainment Group or any of its Subsidiaries after the date of this
      Agreement.

     

    (51)           “Entertainment
      Contracts” shall mean the following Contracts to which CW Media or any of
      its Affiliates is a party or by which it or any of its Affiliates or any of
      their respective Assets is bound, whether or not in writing, except for any
      such
      Contract or part thereof (i) that is expressly contemplated not to be
      Transferred by any member of any Group other than the Entertainment Group to
      the
      Entertainment Group or (ii) that is expressly contemplated to be Transferred
      to
      (or remain with) any member of any Group other than the Entertainment Group,
      in
      each case, pursuant to any provision of this Agreement or any Ancillary
      Agreement:

     

    (i)           any
      Contract entered into in the name of, or expressly on behalf of, any division,
      business unit or member of the Entertainment Group;

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (ii)           any
      Contract that relates primarily to the Entertainment Business;

     

    (iii)           any
      Contract or part thereof, that is otherwise expressly contemplated pursuant
      to
      this Agreement (including pursuant to Section
      2.2(c)) or any of the Ancillary Agreements to be assigned to any
      member of the Entertainment Group;

     

    (iv)           any
      guarantee, indemnity, representation or warranty of or in favour of any member
      of the Entertainment Group; and

     

    (v)           the
      Contracts listed on Schedule 1.1(51).

     

    (52)           “Entertainment
      Employee” shall mean an active employee or an employee on vacation or on a
      leave of absence (including under the Canada Labour Code, the
Employment Standards Act (Ontario) or other applicable legislation) who
      is employed by, is to be employed effective immediately after the Effective
      Time
      (regardless of whether such employee accepts employment) by or will be employed
      by Entertainment or any member of the Entertainment Group, or otherwise
      primarily provides or provided services for the Entertainment Business,
      including those employees of the Predecessor and its Subsidiaries listed on
      Schedule 1.1(52).  For the
      avoidance of doubt, Entertainment Employee shall include such employees who,
      as
      of the Closing Date, are receiving short-term or long-term disability benefits
      or workers’ compensation benefits and, unless otherwise specified herein, any
      Former Entertainment Employees but shall not, during the term of the Transition
      Services Agreement, include the employees listed in Exhibit B to the Transition
      Services Agreement.

     

    (53)           “Entertainment
      Group” shall mean Entertainment together with each Person that is a
      Subsidiary of Entertainment after the Effective Time, and shall include those
      entities identified as such on Schedule 1.1(53).

     

    (54)           “Entertainment
      Liabilities” shall mean:

     

    (i)           any
      and all Liabilities, including Liabilities for Taxes, that are expressly
      contemplated by this Agreement or any Ancillary Agreement (or the Schedules
      hereto or thereto, including Schedule 1.1(54)(i)
      and
      Schedule 2.11 hereto) as Liabilities to be Assumed by any member of the
      Entertainment Group, and all obligations and Liabilities expressly Assumed
      by
      any member of the Entertainment Group under this Agreement or any of the
      Ancillary Agreements;

     

    (ii)           any
      and all Liabilities, including Liabilities for Taxes, that relate or related
      primarily to:

     

    (a)           the
      operation or conduct of the Entertainment Business (including the use of any
      and
      all Trademarks in association with the operation or conduct of the Entertainment
      Business), as conducted at any time prior to, on or after the Effective Time
      (including any Liability relating to, arising out of or resulting from any
      act
      or failure to act by any director, officer, employee, agent or representative
      with respect to the

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    Entertainment
      Business and guarantees or indemnities of or in favour of the Entertainment
      Business or a member of the Entertainment Group);

     

    (b)           the
      operation or conduct of any business conducted by any member of the
      Entertainment Group at any time after the Effective Time (including any
      Liability relating to, arising out of or resulting from any act or failure
      to
      act by any director, officer, employee, agent or representative with respect
      to
      the Entertainment Business); or

     

    (c)           any
      Entertainment Employee or any Former Entertainment Employee (other than a
      Corresponding Employee or a Corresponding Former Employee of a Group other
      than
      the Entertainment Group) in respect of the period prior to, on or after the
      Effective Time;

     

    (iii)           any
      and all Liabilities of the Corporate Division that either (x) are or were more
      related to the Entertainment Business than any other Business, or (y) for which
      the Entertainment Business has or had principal use or
      responsibility;

     

    (iv)           any
      Liabilities relating to, arising out of or resulting from any indebtedness
      (including debt securities and asset-backed debt) of any member of the
      Entertainment Group or indebtedness (regardless of the issuer of such
      indebtedness) primarily relating to the Entertainment Business or any
      indebtedness (regardless of the issuer of such indebtedness) secured primarily
      by any of the Entertainment Assets (including any Liabilities relating to,
      arising out of or resulting from a claim by a holder of any such indebtedness,
      in its capacity as such);

     

    (v)           those
      Separation Expenses allocated to the Entertainment Group in accordance with
      Schedule 1.1(123);

     

    (vi)           such
      percentage of the Residual Liabilities that, together with the percentages
      of
      Residual Liabilities forming part of the International Distribution Liabilities,
      the Movie Distribution Liabilities, the Production Liabilities and the
      Propinquity Liabilities, equals 50%;

     

    (vii)           those
      Corporate Retention and Severance Liabilities and Executive Retention and
      Severance Liabilities allocated to the Entertainment Group in accordance with
      Schedule 1.1(123);

     

    (viii)                      all
      Liabilities of CW Media or any of its Subsidiaries (which Subsidiaries were
      Subsidiaries of CW Media immediately prior to the commencement of the Plan
      of
      Separation) relating to, arising out of or resulting from any Action with
      respect to the Plan of Separation made or brought by any third party against
      any
      Party or any member of any Party’s respective Group (which, for the avoidance of
      doubt, excludes any Action by a Party or member of such Party’s Group, on the
      one hand, against

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    another
      Party or member of such other Party’s Group, on the other hand) and primarily
      relating to the Entertainment Business;

     

    (ix)           all
      Liabilities arising under or relating to any Entertainment
      Contracts;

     

    (x)           all
      Liabilities for Taxes that are classified as and deemed to be Entertainment
      Liabilities in Schedule 2.11.

     

    Notwithstanding
      anything to the contrary herein, the Entertainment Liabilities shall not
      include:

     

    
      	
               

            	
              (x)

            	
              any
                Liabilities that are expressly contemplated by this Agreement or
                any
                Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities
                to
                be retained or Assumed by any member of a Group other than the
                Entertainment Group or for which any such Party is liable pursuant
                to this
                Agreement or such Ancillary Agreement;
                and

            

    

     

    
      	
               

            	
              (y)

            	
              any
                Contracts expressly Assumed by any member of a Group other than the
                Entertainment Group under this Agreement or any of the Ancillary
                Agreements.

            

    

     

    (55)           “Executive
      Retention and Severance Liabilities” shall mean all Liabilities in respect
      of (i) bonuses accrued for the period in the Predecessor’s financial year up to
      and including the Closing Date for the employees listed in Schedule 1.1(55), (ii) the written retention agreements between
      the Predecessor and any such employees, and (iii) the termination or alleged
      termination of any such employees that occurs prior to or as a result of or
      in
      connection with or following the consummation of the transactions contemplated
      by this Agreement, including any amounts required to be paid (including any
      payroll or other Taxes), and the costs of providing benefits and bonuses,
      including bonuses accrued up to the date of termination, under any applicable
      severance, separation, redundancy, termination or similar plan, program,
      practice, contract, agreement, law or regulation (such benefits to include
      any
      medical or other welfare benefits, outplacement benefits or any other benefits
      under a Plan, accrued vacation and Taxes).

     

    (56)           “Force
      Majeure” shall mean, with respect to a Party, an event beyond the control of
      such Party (or any Person acting on its behalf), which by its nature could
      not
      have been foreseen by such Party (or such Person), or, if it could have been
      foreseen, was unavoidable, and includes acts of God, storms, floods, riots,
      pandemics, fires, sabotage, civil commotion or civil unrest, interference by
      civil or military authorities, acts of war (declared or undeclared) or armed
      hostilities or other national or international calamity or one or more acts
      of
      terrorism or failure of energy sources or distribution facilities.

     

    (57)           “Former
      Entertainment Employee” shall mean any former employee of the Entertainment
      Group or the Predecessor and its Subsidiaries who primarily provided services
      to
      the Entertainment Business in the month prior to the former employee’s
      termination of employment.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (58)           “Former
      International Employee” shall mean any former employee of the International
      Distribution Group or the Predecessor and its Subsidiaries who primarily
      provided services to the Entertainment Business in the month prior to the former
      employee’s termination of employment.

     

    (59)           “Former
      Movie Employee” shall mean any former employee of the Movie Distribution
      Group or the Predecessor and its Subsidiaries who primarily provided services
      to
      the Movie Distribution Business in the month prior to the former employee’s
      termination of employment.

     

    (60)           “Former
      Production Employee” shall mean any former employee of the Production Group
      or the Predecessor and its Subsidiaries who primarily provided services to
      the
      Production Business in the month prior to the former employee’s termination of
      employment.

     

    (61)           “Former
      Propinquity Employee” shall mean any former employee of the Propinquity
      Group or the Predecessor and its Subsidiaries who primarily provided services
      to
      the Propinquity Business in the month prior to the former employee’s termination
      of employment.

     

    (62)           “Former
      STV Employee” shall mean any former employee of the STV Group or the
      Predecessor and its Subsidiaries who primarily provided services to the
      Specialty Television Business in the month prior to the former employee’s
      termination of employment.

     

    (63)           “Governmental
      Approvals” shall mean any notices or reports to be submitted to, or other
      filings to be made with, or any consents, registrations, approvals, permits
      or
      authorizations to be obtained from, any Governmental Entity.

     

    (64)           “Governmental
      Entity” shall mean any nation or government, any state, province,
      municipality or other political subdivision thereof and any entity, body,
      agency, commission, department, board, bureau or court, whether domestic,
      foreign or multinational, exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to government and any
      executive official thereof.

     

    (65)           “Group”
      shall mean any of the Entertainment Group, the International Group, the Movie
      Group, the Production Group, the Propinquity Group, the STV Group, or the
      Shelter Group, as the context requires.

     

    (66)           “Guaranty
      Release” shall have the meaning set forth in Section 2.10(b).

     

    (67)           “Income
      Taxes” shall mean any federal, provincial, municipal or foreign taxes (i)
      based upon, measured by or calculated with respect to net income, income as
      specially defined, earnings, profits or selected items of income, earnings
      or
      profits (including capital gains taxes and minimum taxes), or (ii) based upon,
      measured by or calculated with respect to multiple bases (including corporate
      franchise taxes) if one or more of the bases on which such taxes may be based,
      measured by or calculated with respect to, is described in (i), in each case
      together with any interest, penalties or additions to such taxes.

     

    (68)           “Indemnifiable
      Loss” and “Indemnifiable Losses” shall mean any and all damages,
      losses, deficiencies, Liabilities, obligations, penalties, judgments,
      settlements, claims,

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    Taxes,
      payments, fines, interest, assessments, reassessments, costs and expenses
      (including the costs and expenses of any and all Actions and demands,
      assessments, reassessments, judgments, settlements and compromises relating
      thereto and the reasonable costs and expenses of attorneys’, accountants’,
      consultants’ and other professionals’ fees and expenses incurred in the
      investigation or defense thereof or the enforcement of rights hereunder),
      excluding special, consequential, indirect, punitive damages (other than
      special, consequential, indirect and/or punitive damages awarded to any third
      party against an indemnified party.

     

    (69)           “Indemnifying
      Party” shall have the meaning set forth in Section 6.3(b).

     

    (70)           “Indemnitee”
      shall mean any Corresponding Indemnitee of any New Entity.

     

    (71)           “Indemnity
      Payment” shall have the meaning set forth in Section 6.7(a).

     

    (72)           “Information”
      shall mean information, whether or not patentable or copyrightable, in written,
      oral, electronic or other tangible or intangible forms, stored in any medium,
      including studies, reports, records, books, contracts, instruments, surveys,
      discoveries, ideas, concepts, know-how, techniques, designs, specifications,
      drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data,
      computer data, disks, diskettes, tapes, computer programs or other software,
      marketing plans, customer names, communications by or to attorneys (including
      attorney-client privileged communications), memos and other materials prepared
      by attorneys or under their direction (including attorney work product),
      communications and materials otherwise related to or made or prepared in
      connection with or in preparation for any legal proceeding, and other technical,
      financial, employee or business information or data.

     

    (73)           “Insurance
      Proceeds” shall mean those monies (i) received by an insured from an
      insurance carrier or (ii) paid by an insurance carrier on behalf of an insured,
      in either case net of any applicable premium adjustment, retrospectively-rated
      premium, deductible, retention, or cost of reserve paid or held by or for the
      benefit of such insured.

     

    (74)           “Insured
      Claims” shall mean those Liabilities that, individually or in the aggregate,
      are covered within the terms and conditions of any of the Shared Policies,
      whether or not subject to deductibles, co-insurance, uncollectibility or
      retrospectively-rated premium adjustments.

     

    (75)           “Intellectual
      Property” shall mean all intellectual property and industrial property
      rights of any kind or nature, including all Canadian, U.S. and foreign (i)
      patents, patent applications, patent disclosures, and all related continuations,
      continuations-in-part, divisionals, reissues, re-examinations, substitutions
      and
      extensions thereof, (ii) Trademarks, (iii) copyrights and copyrightable subject
      matter, (iv) rights of publicity, (v) moral rights and rights of attribution
      and
      integrity, (vi) rights in Software, (vii) trade secrets and all other
      confidential information, know-how, inventions, proprietary processes, formulae,
      models and methodologies, (viii) rights of privacy and rights to personal
      information, (ix) telephone numbers and Internet protocol addresses, (x) all
      rights in the foregoing and in other similar intangible assets, (ix)
      all

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    applications
      and registrations for the foregoing and (xii) all rights and remedies against
      past, present, and future infringement, misappropriation, or other violation
      of
      the foregoing.

     

    (76)           “Intermediate
      Transfers” shall have the meaning set forth in Section 2.2(a)(ii).

     

    (77)           “International”
      shall have the meaning set forth in the preamble.

     

    (78)           “International
      Distribution Assets” shall mean:

     

    (i)           the
      ownership interests in all Business Entities in the International
      Group;

     

    (ii)           all
      International Distribution Contracts, any rights or claims arising thereunder,
      and any other rights or claims or contingent rights or claims primarily relating
      to or arising from any International Distribution Asset or the International
      Distribution Business;

     

    (iii)           subject
      to Article IX, any rights of any member of
      the International Group under any Policies, including any rights thereunder
      arising after the Closing Date in respect of any Policies that are occurrence
      policies;

     

    (iv)           any
      and all Assets owned or held immediately prior to the commencement of the
      implementation of the Plan of Separation by CW Media or any of its Subsidiaries
      (including, prior to the Effective Time, by any Group) (A) that comprise or
      comprised or relate or related primarily to the International Distribution
      Business or (B) that comprise or comprised the Corporate Division and either
      (x)
      are or were more related to the International Distribution Business than any
      other Business, or (y) for which the International Distribution Business has
      or
      had principal use or responsibility;

     

    (v)           the
      Assets set forth on Schedule 1.1(78)(v)
      and
      any and all Assets that are expressly contemplated by this Agreement or any
      Ancillary Agreement as Assets which have been or are to be Transferred to
      International or any other member of the International Group;

     

    (vi)           any
      and all furnishings and office equipment located at a physical site of which
      the
      ownership or leasehold interest is being Transferred to International or a
      Subsidiary of International; provided, that personal computers shall be
      Transferred to the Party or Subsidiary of the Party that, following the
      Effective Time, employs the applicable employee who, prior to the Effective
      Time, used such personal computer; and

     

    (vii)           any
      Cash owned by any member of the International Group that is not a wholly-owned
      Subsidiary of International.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Notwithstanding
      the foregoing, the International Distribution Assets shall not include (i)
      any
      Cash, except as provided in clause (vii) of this Section 1.1(78), or any
      Assets that are
      expressly contemplated by this Agreement or any Ancillary Agreement (or the
      Schedules hereto or thereto) as Assets to be retained by or Transferred to
      any
      member of a Group other than the International Group.

     

    In
      the
      event of any inconsistency or conflict which may arise in the application or
      interpretation of any of the foregoing provisions, for the purpose of
      determining what is and is not a International Distribution Asset, any item
      explicitly included on a Schedule referred to in this Section 1.1(78) shall take priority over any
      provision of the text hereof.

     

    (79)           “International
      Distribution Business” shall mean (i) the business of the international
      (i.e., non-Canadian) distribution of the programs and films of the Canadian
      film
      library of the Predecessor (and its Subsidiaries immediately prior to the
      Effective Time) conducted primarily through the members of International Group
      prior to the Effective Time and (ii) the businesses and operations of Business
      Entities acquired or established by or for International or any of its
      Subsidiaries after the date of this Agreement.

     

    (80)           “International
      Distribution Contracts” shall mean the following Contracts to which CW Media
      or any of its Affiliates is a party or by which it or any of its Affiliates
      or
      any of their respective Assets is bound, whether or not in writing, except
      for
      any such Contract or part thereof (i) that is expressly contemplated not to
      be
      Transferred by any member of a Group other than the International Group to
      the
      International Group or (ii) that is expressly contemplated to be Transferred
      to
      (or remain with) any member of a Group other than the International Group,
      in
      each case, pursuant to any provision of this Agreement or any Ancillary
      Agreement:

     

    (i)           any
      Contract entered into in the name of, or expressly on behalf of, any division,
      business unit or member of the International Group;

     

    (ii)           any
      Contract that relates primarily to the International Distribution
      Business;

     

    (iii)           any
      Contract or part thereof, that is otherwise expressly contemplated pursuant
      to
      this Agreement (including pursuant to Section
      2.2(c)) or any of the Ancillary Agreements to be assigned to any
      member of the International Group;

     

    (iv)           any
      guarantee, indemnity, representation or warranty of or in favour of any member
      of the International Group; and

     

    (v)           the
      Contracts listed on Schedule 1.1(65).

     

    (81)           “International
      Distribution Liabilities” shall mean:

     

    (i)           any
      and all Liabilities, including Liabilities for Taxes, that are expressly
      contemplated by this Agreement or any Ancillary Agreement (or

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    the
      Schedules hereto or thereto, including Schedule 1.1(81)(i)
      and
      Schedule 2.11 hereto) as Liabilities to be Assumed by any member of the
      International Group, and all obligations and Liabilities expressly Assumed
      by
      any member of the International Group under this Agreement or any of the
      Ancillary Agreements;

     

    (ii)           any
      and all Liabilities, including Liabilities for Taxes, that relate or related
      primarily to:

     

    (a)           the
      operation or conduct of the International Distribution Business (including
      the
      use of any and all Trademarks in association with the operation or conduct
      of
      the International Distribution Business), as conducted at any time prior to,
      on
      or after the Effective Time (including any Liability relating to, arising out
      of
      or resulting from any act or failure to act by any director, officer, employee,
      agent or representative with respect to the International Distribution Business
      and guarantees or indemnities of or in favour of the International Distribution
      Business or a member of the International Group);

     

    (b)           the
      operation or conduct of any business conducted by any member of the
      International Group at any time after the Effective Time (including any
      Liability relating to, arising out of or resulting from any act or failure
      to
      act by any director, officer, employee, agent or representative with respect
      to
      the International Distribution Business); or

     

    (c)           any
      International Employee or any Former International Employee (other than a
      Corresponding Employee or a Corresponding Former Employee of a Group other
      than
      the International Group) in respect of the period prior to, on or after the
      Effective Time;

     

    (iii)           any
      and all Liabilities of the Corporate Division that either (x) are or were more
      related to the International Distribution Business than any other Business,
      or
      (y) for which the International Distribution Business has or had principal
      use
      or responsibility;

     

    (iv)           any
      Liabilities relating to, arising out of or resulting from any indebtedness
      (including debt securities and asset-backed debt) of any member of the
      International Group or indebtedness (regardless of the issuer of such
      indebtedness) primarily relating to the International Distribution Business
      or
      any indebtedness (regardless of the issuer of such indebtedness) secured
      primarily by any of the International Distribution Assets (including any
      Liabilities relating to, arising out of or resulting from a claim by a holder
      of
      any such indebtedness, in its capacity as such);

     

    (v)           such
      percentage of the Residual Liabilities that, together with the percentages
      of
      Residual Liabilities forming part of the Entertainment

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    Liabilities,
      the Movie Distribution Liabilities, the Production Liabilities and the
      Propinquity Liabilities, equals 50%;

     

    (vi)           all
      Liabilities of CW Media or any of its Subsidiaries (which Subsidiaries were
      Subsidiaries of CW Media immediately prior to the commencement of the
      implementation of the Plan of Separation) relating to, arising out of or
      resulting from any Action with respect to the Plan of Separation made or brought
      by any third party against any Party or any member of any Party’s respective
      Group (which, for the avoidance of doubt, excludes any Action by a Party or
      member of such Party’s Group, on the one hand, against another Party or member
      of such other Party’s Group, on the other hand) and primarily relating to the
      International Distribution Business;

     

    (vii)           all
      Liabilities arising under or relating to any International Distribution
      Contracts; and

     

    (viii)                      all
      Liabilities for Taxes that are classified as and deemed to be International
      Distribution Liabilities in Schedule 2.11.

     

    Notwithstanding
      anything to the contrary herein, the International Distribution Liabilities
      shall not include:

     

    
      	
               

            	
              (x)

            	
              any
                Liabilities that are expressly contemplated by this Agreement or
                any
                Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities
                to
                be retained or Assumed by any member of a Group other than the
                International Group or for which any member of such Group is liable
                pursuant to this Agreement or such Ancillary Agreement;
                and

            

    

     

    
      	
               

            	
              (y)

            	
              any
                Contracts expressly Assumed by any member of a Group other than the
                International Group under this Agreement or any of the Ancillary
                Agreements.

            

    

     

    (82)           “International
      Employee” shall mean an active employee or an employee on vacation or on a
      leave of absence (including under the Canada Labour Code, the
Employment Standards Act (Ontario) or other applicable legislation) who
      is employed by, is to be employed effective immediately after the Effective
      Time
      (regardless of whether such employee accepts employment) by or will be employed
      by International or any member of the International Group or otherwise primarily
      provides or provided services for the International Distribution Business,
      including those employees of the Predecessor and its Subsidiaries listed in
      Schedule 1.1(82).  For the
      avoidance of doubt, International Employee shall include such employees who,
      as
      of the Closing Date, are receiving short-term or long-term disability benefits
      or workers’ compensation benefits and, unless otherwise specified herein, any
      Former International Employees but shall not, during the term of the Transition
      Services Agreement, include the employees listed in Exhibit B to the Transition
      Services Agreement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (83)           “International
      Group” shall mean International together with each Person that is a
      Subsidiary of International after the Effective Time, and shall include those
      entities identified as such on Schedule 1.1(83).

     

    (84)           “Law”
      shall mean any Canadian, U.S. or other federal, national, supranational, state,
      provincial, local or similar statute, law, ordinance, regulation, rule, code,
      order, requirement or rule of law (including common law).

     

    (85)           “Liabilities”
      shall mean any and all debts, liabilities, costs, expenses and obligations,
      whether accrued or fixed, absolute or contingent, matured or unmatured, reserved
      or unreserved, or determined or determinable, including those arising under
      any
      Law, claim, demand, Action, whether asserted or unasserted, or order, writ,
      judgment, injunction, decree, stipulation, determination or award entered by
      or
      with any Governmental Entity and those arising under any Contract or any fines,
      damages or equitable relief which may be imposed and including all costs and
      expenses related thereto.

     

    (86)           “Liable
      Party” shall have the meaning set forth in Section 2.9(b).

     

    (87)           “Movie”
      shall have the meaning set forth in the preamble.

     

    (88)           “Movie
      and Entertainment Plans” shall have the meaning set forth in Section 5.1(c).

     

    (89)           “Movie
      Distribution Assets” shall mean:

     

    (i)           the
      ownership interests in all Business Entities in the Movie Group;

     

    (ii)           all
      Movie Distribution Contracts, any rights or claims arising thereunder, and
      any
      other rights or claims or contingent rights or claims primarily relating to
      or
      arising from any Movie Distribution Asset or the Movie Distribution
      Business;

     

    (iii)           subject
      to Article IX, any rights of any member of
      the Movie Group under any Policies, including any rights thereunder arising
      after the Closing Date in respect of any Policies that are occurrence
      policies;

     

    (iv)           any
      and all Assets owned or held immediately prior to the commencement of the
      implementation of the Plan of Separation by CW Media or any of its Subsidiaries
      (including, prior to the Effective Time, by any Group) (A) that comprise or
      comprised or relate or related primarily to the Movie Distribution Business
      or
      (B) that comprise or comprised the Corporate Division and either (x) are or
      were
      more related to the Movie Distribution Business than any other Business, or
      (y)
      for which the Movie Distribution Business has or had principal use or
      responsibility;

     

    (v)           the
      Assets set forth on Schedule 1.1(89)(v)
      and
      any and all Assets that are expressly contemplated by this Agreement or any
      Ancillary

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    Agreement
      as Assets which have been or are to be Transferred to Movie or any other member
      of the Movie Group;

     

    (vi)           any
      and all furnishings and office equipment located at a physical site of which
      the
      ownership or leasehold interest is being Transferred to Movie or a Subsidiary
      of
      Movie; provided, that personal computers shall be Transferred to the
      Party, or Subsidiary of the Party that, following the Effective Time, employs
      the applicable employee who, prior to the Effective Time, used such personal
      computer; and

     

    (vii)           any
      Cash owned by any member of the Movie Group that is not a wholly-owned
      Subsidiary of Movie.

     

    Notwithstanding
      the foregoing, the Movie Distribution Assets shall not include (i) any Cash,
      except as provided in clause (vii) of Section
      1.1(89), or (ii) any Assets that are
      expressly contemplated by this Agreement or any Ancillary Agreement (or the
      Schedules hereto or thereto) as Assets to be retained by or Transferred to
      any
      member of a Group other than the Movie Group.

     

    In
      the
      event of any inconsistency or conflict which may arise in the application or
      interpretation of any of the foregoing provisions, for the purpose of
      determining what is and is not a Movie Distribution Asset, any item explicitly
      included on a Schedule referred to in this Section 1.1(89) shall take priority over any
      provision of
      the text hereof.

     

    (90)           “Movie
      Distribution Business” shall mean (i) the business of motion picture
      distribution in Canada conducted primarily through the members of Movie Group
      prior to the Effective Time and (ii) the businesses and operations of Business
      Entities acquired or established by or for Movie or any of its Subsidiaries
      after the date of this Agreement.

     

    (91)           “Movie
      Distribution Contracts” shall mean the following Contracts to which CW Media
      or any of its Affiliates is a party or by which it or any of its Affiliates
      or
      any of their respective Assets is bound, whether or not in writing, except
      for
      any such Contract or part thereof (i) that is expressly contemplated not to
      be
      Transferred by any member of a Group other than the Movie Group to the Movie
      Group or (ii) that is expressly contemplated to be Transferred to (or remain
      with) any member of a Group other than the Movie Group, in each case, pursuant
      to any provision of this Agreement or any Ancillary Agreement:

     

    (i)           any
      Contract entered into in the name of, or expressly on behalf of, any division,
      business unit or member of the Movie Group;

     

    (ii)           any
      Contract that relates primarily to the Movie Distribution Business;

     

    (iii)           any
      Contract or part thereof, that is otherwise expressly contemplated pursuant
      to
      this Agreement (including pursuant to Section
      2.2(c)) or any of the Ancillary Agreements to be assigned to any
      member of the Movie Group;

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (iv)           any
      guarantee, indemnity, representation or warranty of or in favour of any member
      of the Movie Group; and

     

    (v)           the
      Contracts listed on Schedule 1.1(91).

     

    (92)           “Movie
      Distribution Liabilities” shall mean:

     

    (i)           any
      and all Liabilities, including Liabilities for Taxes, that are expressly
      contemplated by this Agreement or any Ancillary Agreement (or the Schedules
      hereto or thereto, including Schedule 1.1(92)(i)
      and
Schedule 2.11 hereto) as Liabilities to be Assumed by any member of the
      Movie Group, and all obligations and Liabilities expressly Assumed by any member
      of the Movie Group under this Agreement or any of the Ancillary
      Agreements;

     

    (ii)           any
      and all Liabilities, including Liabilities for Taxes, that relate or related
      primarily to:

     

    (a)           the
      operation or conduct of the Movie Distribution Business (including the use
      of
      any and all Trademarks in association with the operation or conduct of the
      Movie
      Distribution Business), as conducted at any time prior to, on or after the
      Effective Time (including any Liability relating to, arising out of or resulting
      from any act or failure to act by any director, officer, employee, agent or
      representative with respect to the Movie Distribution Business and guarantees
      or
      indemnities of or in favour of the Movie Distribution Business or a member
      of
      the Movie Group);

     

    (b)           the
      operation or conduct of any business conducted by any member of the Movie Group
      at any time after the Effective Time (including any Liability relating to,
      arising out of or resulting from any act or failure to act by any director,
      officer, employee, agent or representative with respect to the Movie
      Distribution Business); or

     

    (c)           any
      Movie Employee or any Former Movie Employee (other than a Corresponding Employee
      or a Corresponding Former Employee of a Group other than the Movie Group) in
      respect of the period prior to, on or after the Effective Time;

     

    (iii)           any
      and all Liabilities of the Corporate Division that either (x) are or were more
      related to the Movie Distribution Business than any other Business, or (y)
      for
      which the Movie Distribution Business has or had principal use or
      responsibility;

     

    (iv)           any
      Liabilities relating to, arising out of or resulting from any indebtedness
      (including debt securities and asset-backed debt) of any member of the Movie
      Group or indebtedness (regardless of the issuer of such indebtedness) primarily
      relating to the Movie Distribution Business

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    or
      any
      indebtedness (regardless of the issuer of such indebtedness) secured primarily
      by any of the Movie Distribution Assets (including any Liabilities relating
      to,
      arising out of or resulting from a claim by a holder of any such indebtedness,
      in its capacity as such);

     

    (v)           such
      percentage of the Residual Liabilities that, together with the percentages
      of
      Residual Liabilities forming part of the Entertainment Liabilities, the
      International Distribution Liabilities, the Production Liabilities and the
      Propinquity Liabilities, equals 50%;

     

    (vi)           all
      Liabilities of CW Media or any of its Subsidiaries (which Subsidiaries were
      Subsidiaries of CW Media immediately prior to the commencement of the
      implementation of the Plan of Separation) relating to, arising out of or
      resulting from any Action with respect to the Plan of Separation made or brought
      by any third party against any Party or any member of any Party’s respective
      Group (which, for the avoidance of doubt, excludes any Action by a Party or
      member of such Party’s Group, on the one hand, against another Party or member
      of such other Party’s Group, on the other hand) and primarily relating to the
      Movie Distribution Business;

     

    (vii)           all
      Liabilities arising under or relating to any Movie Distribution Contracts;
      and

     

    (viii)                      all
      Liabilities for Taxes that are classified as and deemed to be Movie Distribution
      Liabilities in Schedule 2.11.

     

    Notwithstanding
      anything to the contrary herein, the Movie Distribution Liabilities shall not
      include:

     

    
      	
               

            	
              (x)

            	
              any
                Liabilities that are expressly contemplated by this Agreement or
                any
                Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities
                to
                be retained or Assumed by any member of a Group other than the Movie
                Group
                or for which any member of such Group is liable pursuant to this
                Agreement
                or such Ancillary Agreement; and

            

    

     

    
      	
               

            	
              (y)

            	
              any
                Contracts expressly Assumed by any member of a Group other than the
                Movie
                Group under this Agreement or any of the Ancillary
                Agreements.

            

    

     

    (93)           “Movie
      Employee” shall mean an active employee or an employee on vacation or on a
      leave of absence (including under the Canada Labour Code, the
Employment Standards Act (Ontario) or other applicable legislation) who
      is employed by, is to be employed effective immediately after the Effective
      Time
      (regardless of whether such employee accepts employment) by or will be employed
      by Movie or any member of the Movie Group or otherwise primarily provides or
      provided services for the Movie Distribution Business, including those employees
      of the Predecessor and its Subsidiaries listed in Schedule 1.1(93).  For the avoidance of doubt,
      Movie Employee shall include such employees who, as of the Closing Date,
      are

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    receiving
      short-term or long-term disability benefits or workers’ compensation benefits
      and, unless otherwise specified herein, any Former Movie Employees but shall
      not, during the term of the Transition Services Agreement, include the employees
      listed in Exhibit B to the Transition Services Agreement.

     

    (94)           “Movie
      Group” shall mean Movie together with each Person that is a Subsidiary of
      Movie after the Effective Time, and shall include those entities identified
      as
      such on Schedule 1.1(94).

     

    (95)           “New
      Entity” shall mean any of Entertainment, International, Movie, Production,
      Propinquity, STV or ShelterCo.

     

    (96)           “Non-Liable
      Party” shall have the meaning set forth in Section 2.9(a).

     

    (97)           “Other
      Party Marks” shall have the meaning set forth in Section 4.2(a).

     

    (98)           “Person”
      shall mean any natural person, firm, individual, corporation, business trust,
      joint venture, association, company, limited liability company, unlimited
      liability company, partnership or other organization or entity, whether
      incorporated or unincorporated, or any Governmental Entity.

     

    (99)           “Party”
      or “Parties” shall have the meaning set forth in the
      preamble.

     

    (100)                      “Plan”
      means any employee benefit plan, program, policy, practices, undertaking,
      agreement or other arrangement under which benefits are to be provided or
      payments are to be made to any current or former employee, service provider,
      Person working on contract, officer or director (or any beneficiary, dependent
      or spouse of any such Person) that is sponsored or maintained by any Person,
      whether funded or unfunded, insured or uninsured, to which any Person
      contributes or is obligated to contribute or to which any Person has, or will
      have, any Liability or contingent Liability, whether or not written, including
      any employee welfare benefit plan within the meaning of Section 3(1) of ERISA,
      any employee pension benefit plan within the meaning of Section 3(2) of ERISA
      (whether or not such plan is subject to ERISA) and any bonus, incentive,
      deferred compensation, vacation, stock purchase, stock option, severance,
      employment, change of control or fringe benefit plan, program, agreement or
      policy, other than in each case statutory benefit plans.

     

    (101)                      “Plan
      of Separation” shall have the meaning set forth in the
      recitals.

     

    (102)                      “Policies”
      shall mean insurance policies and insurance Contracts of any kind (other than
      life and benefits policies or Contracts and policies or Contracts in respect
      of
      a Plan), including primary, excess and umbrella policies, comprehensive general
      liability policies, director and officer liability, fiduciary liability,
      automobile, aircraft, property and casualty, short-term and long-term
      disability, and employee dishonesty insurance policies, bonds and self-insurance
      and captive insurance company arrangements, together with the rights, benefits
      and privileges thereunder.

     

    (103)                      “Predecessor”
      shall have the meaning set forth in the recitals.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    (104)                      “Prime
      Rate” shall have the meaning set forth in Section 10.11(a).

     

    (105)                      “Production”
      shall have the meaning set forth in the preamble.

     

    (106)                      “Production
      Assets” shall mean:

     

    (i)           the
      ownership interests in all Business Entities in the Production
      Group;

     

    (ii)           all
      Production Contracts, any rights or claims arising thereunder, and any other
      rights or claims or contingent rights or claims primarily relating to or arising
      from any Production Asset or the Production Business;

     

    (iii)           subject
      to Article IX, any rights of any member of
      the Production Group under any Policies, including any rights thereunder arising
      after the Closing Date in respect of any Policies that are occurrence
      policies;

     

    (iv)           any
      and all Assets owned or held immediately prior to the commencement of the
      implementation of the Plan of Separation by CW Media or any of its Subsidiaries
      (including, prior to the Effective Time, by any Group) (A) that comprise or
      comprised or relate or related primarily to the Production Business or (B)
      that
      comprise or comprised the Corporate Division and either (x) are or were more
      related to the Production Business than the other Businesses, or (y) for which
      the Production Business has or had principal use or responsibility;

     

    (v)           the
      Assets set forth on Schedule 1.1(106)(v)
      and any and all Assets that are expressly contemplated by this Agreement or
      any
      Ancillary Agreement as Assets which have been or are to be Transferred to
      Production or any other member of the Production Group; 

     

    (vi)           any
      and all furnishings and office equipment located at a physical site of which
      the
      ownership or leasehold interest is being Transferred to Production or a
      Subsidiary of Production; provided, that personal computers shall be
      Transferred to the Party or Subsidiary of the Party that, following the
      Effective Time, employs the applicable employee who, prior to the Effective
      Time, used such personal computer; and

     

    (vii)           any
      Cash owned by any member of the Production Group that is not a wholly-owned
      Subsidiary of Production.

     

    Notwithstanding
      the foregoing, the Production Assets shall not include (i) any Cash, except
      as
      provided in clause (vii) of this Section
      1.1(106), or (ii) any Assets that are
      expressly contemplated by this Agreement or any Ancillary Agreement (or the
      Schedules hereto or thereto) as Assets to be retained by or Transferred to
      any
      member of a Group other than the Production Group.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    In
      the
      event of any inconsistency or conflict which may arise in the application or
      interpretation of any of the foregoing provisions, for the purpose of
      determining what is and is not an Production Asset, any item explicitly included
      on a Schedule referred to in this Section 1.1(106) (shall take priority over any
      provision
      of the text hereof.

     

    (107)                      “Production
      Business” shall mean (i) the business of holding the rights to the programs
      and films of the Canadian film library of the Predecessor (and its Subsidiaries
      immediately prior to the  Effective Time) conducted primarily through
      the members of the Production Group prior to the Effective Time and (ii) the
      businesses and operations of Business Entities acquired or established by or
      for
      Production or any of its Subsidiaries after the date of this
      Agreement.

     

    (108)                      “Production
      Contracts” shall mean the following Contracts to which CW Media or any of
      its Affiliates is a party or by which it or any of its Affiliates or any of
      their respective Assets is bound, whether or not in writing, except for any
      such
      Contract or part thereof (i) that is expressly contemplated not to be
      Transferred by any member of any Group other than the Production Group to the
      Production Group or (ii) that is expressly contemplated to be Transferred to
      (or
      remain with) any member of any Group other than the Production Group, in each
      case, pursuant to any provision of this Agreement or any Ancillary
      Agreement:

     

    (i)           any
      Contract entered into in the name of, or expressly on behalf of, any division,
      business unit or member of the Production Group;

     

    (ii)           any
      Contract that relates primarily to the Production Business;

     

    (iii)           any
      Contract or part thereof, that is otherwise expressly contemplated pursuant
      to
      this Agreement (including pursuant to Section
      2.2(c)) or any of the Ancillary Agreements to be assigned to any
      member of the Production Group;

     

    (iv)           any
      guarantee, indemnity, representation or warranty of or in favour of any member
      of the Production Group; and

     

    (v)           the
      Contracts listed on Schedule 1.1(108).

     

    (109)                      “Production
      Employee” shall mean an active employee or an employee on vacation or on a
      leave of absence (including under the Canada Labour Code, the
Employment Standards Act (Ontario) or other applicable legislation) who
      is employed by, is to be employed effective immediately after the Effective
      Time
      (regardless of whether such employee accepts employment) by or will be employed
      by Production or any member of the Production Group or otherwise primarily
      provides or provided services for the Production Business, including those
      employees of the Predecessor and its Subsidiaries listed in Schedule
      1.1(109).  For the avoidance
      of doubt, Production Employee shall include such employees who, as of the
      Closing Date, are receiving short-term or long-term disability benefits or
      workers’ compensation benefits and, unless otherwise specified herein, any
      Former Production Employees.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    (110)                      “Production
      Group” shall mean Production  together with each Person that is a
      Subsidiary of Production after the Effective Time, and shall include those
      entities identified as such on Schedule 1.1(110).

     

    (111)                      “Production
      Liabilities” shall mean:

     

    (i)           any
      and all Liabilities, including Liabilities for Taxes, that are expressly
      contemplated by this Agreement or any Ancillary Agreement (or the Schedules
      hereto or thereto, including Schedule 1.1(111)(i)
      and Schedule 2.11 hereto) as Liabilities to be Assumed by any member of
      the Production Group, and all obligations and Liabilities expressly Assumed
      by
      any member of the Production Group under this Agreement or any of the Ancillary
      Agreements;

     

    (ii)           any
      and all Liabilities, including Liabilities for Taxes, that relate or related
      primarily to:

     

    (a)           the
      operation or conduct of the Production Business (including the use of any and
      all Trademarks in association with the operation or conduct of the Production
      Business), as conducted at any time prior to, on or after the Effective Time
      (including any Liability relating to, arising out of or resulting from any
      act
      or failure to act by any director, officer, employee, agent or representative
      with respect to the Production Business and guarantees or indemnities of or
      in
      favour of the Production Business or a member of the Production
      Group);

     

    (b)           the
      operation or conduct of any business conducted by any member of the Production
      Group at any time after the Effective Time (including any Liability relating
      to,
      arising out of or resulting from any act or failure to act by any director,
      officer, employee, agent or representative with respect to the Production
      Business); or

     

    (c)           any
      Production Employee or any Former Production Employee (other than a
      Corresponding Employee or a Corresponding Former Employee of a Group other
      than
      the Production Group) in respect of the period prior to, on or after the
      Effective Time;

     

    (iii)           any
      and all Liabilities of the Corporate Division that either (x) are or were more
      related to the Production Business than any other Business, or (y) for which
      the
      Production Business has or had principal use or responsibility;

     

    (iv)           any
      Liabilities relating to, arising out of or resulting from any indebtedness
      (including debt securities and asset-backed debt) of any member of the
      Production Group or indebtedness (regardless of the issuer of such indebtedness)
      primarily relating to the Production Business or any indebtedness (regardless
      of
      the issuer of such indebtedness) secured primarily by any of the Production
      Assets (including any Liabilities

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    relating
      to, arising out of or resulting from a claim by a holder of any such
      indebtedness, in its capacity as such);

     

    (v)           such
      percentage of the Residual Liabilities that, together with the percentages
      of
      Residual Liabilities forming part of the Entertainment Liabilities, the
      International Distribution Liabilities, the Movie Distribution Liabilities
      and
      the Propinquity Liabilities, equals 50%;;

     

    (vi)           all
      Liabilities of CW Media or any of its Subsidiaries (which Subsidiaries were
      Subsidiaries of CW Media immediately prior to the commencement of the Plan
      of
      Separation) relating to, arising out of or resulting from any Action with
      respect to the Plan of Separation made or brought by any third party against
      any
      Party or any member of any Party’s respective Group (which, for the avoidance of
      doubt, excludes any Action by a Party or member of such Party’s Group, on the
      one hand, against another Party or member of such other Party’s Group, on the
      other hand) and primarily relating to the Production Business;

     

    (vii)           all
      Liabilities arising under or relating to any Production Contracts;
      and

     

    (viii)                      all
      Liabilities for Taxes that are classified as and deemed to be Production
      Liabilities in Schedule 2.11.

     

    Notwithstanding
      anything to the contrary herein, the Production Liabilities shall not
      include:

     

    
      	
               

            	
              (x)

            	
              any
                Liabilities that are expressly contemplated by this Agreement or
                any
                Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities
                to
                be retained or Assumed by any member of a Group other than the Production
                Group or for which any such Party is liable pursuant to this Agreement
                or
                such Ancillary Agreement; and

            

    

     

    
      	
               

            	
              (y)

            	
              any
                Contracts expressly Assumed by any member of a Group other than the
                Production Group under this Agreement or any of the Ancillary
                Agreements.

            

    

     

    (112)                      “Propinquity”
      shall have the meaning set forth in the preamble.

     

    (113)                      “Propinquity
      Assets” shall mean: 

     

    (i)           the
      ownership interests in all Business Entities in the Propinquity
      Group;

     

    (ii)           all
      Propinquity Contracts, any rights or claims arising thereunder, and any other
      rights or claims or contingent rights or claims primarily relating to or arising
      from any Propinquity Asset or the Propinquity Business;

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    (iii)           subject
      to Article IX, any rights of any member of
      the Propinquity Group under any Policies, including any rights thereunder
      arising after the Closing Date in respect of any Policies that are occurrence
      policies;

     

    (iv)           any
      and all Assets owned or held immediately prior to the Effective Time by CW
      Media
      or any of its Subsidiaries (including, prior to commencement of the
      implementation of the Plan of Separation, by any Group) (A) that comprise or
      comprised or relate or related primarily to the Propinquity Business or (B)
      that
      comprise or comprised the Corporate Division and either (x) are or were more
      related to the Propinquity Business than the other Businesses, or (y) for which
      the Propinquity Business has or had principal use or
      responsibility;

     

    (v)           the
      Assets set forth on Schedule 1.1(113)(v)
      and any and all Assets that are expressly contemplated by this Agreement or
      any
      Ancillary Agreement as Assets which have been or are to be Transferred to
      Propinquity or any other member of the Propinquity Group; and

     

    (vi)           any
      and all furnishings and office equipment located at a physical site of which
      the
      ownership or leasehold interest is being Transferred to Propinquity or a
      Subsidiary of Propinquity; provided, that personal computers shall be
      Transferred to the Party or Subsidiary of the Party that, following the
      Effective Time, employs the applicable employee who, prior to the Effective
      Time, used such personal computer; and

     

    (vii)           any
      Cash owned by any member of the Propinquity Group that is not a wholly-owned
      Subsidiary of Propinquity.

     

    Notwithstanding
      the foregoing, the Propinquity Assets shall not include (i) any Cash, except
      as
      provided in clause (vii) of this Section
      1.1(113), or (ii) any Assets that are
      expressly contemplated by this Agreement or any Ancillary Agreement (or the
      Schedules hereto or thereto) as Assets to be retained by or Transferred to
      any
      member of a Group other than the Propinquity Group.

     

    In
      the
      event of any inconsistency or conflict which may arise in the application or
      interpretation of any of the foregoing provisions, for the purpose of
      determining what is and is not an Propinquity Asset, any item explicitly
      included on a Schedule referred to in this Section 1.1(113)shall take priority over any
      provision of
      the text hereof.

     

    (114)                      “Propinquity
      Business” shall mean (i) the business of holding the Canadian music
      publishing rights of the Predecessor (and its Subsidiaries immediately prior
      to
      the Effective Time), which are administered by Sony/ATV, conducted primarily
      through the members of the Propinquity Group prior to the Effective Time and
      (ii) the businesses and operations of Business Entities acquired or established
      by or for Propinquity or any of its Subsidiaries after the date of this
      Agreement.

     

    (115)                      “Propinquity
      Contracts” shall mean the following Contracts to which CW Media or any of
      its Affiliates is a party or by which it or any of its Affiliates or any of
      their

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    respective
      Assets is bound, whether or not in writing, except for any such Contract or
      part
      thereof (i) that is expressly contemplated not to be Transferred by any member
      of any Group other than the Propinquity Group to the Propinquity Group or (ii)
      that is expressly contemplated to be Transferred to (or remain with) any member
      of any Group other than the Propinquity Group, in each case, pursuant to any
      provision of this Agreement or any Ancillary Agreement:

     

    (i)           any
      Contract entered into in the name of, or expressly on behalf of, any division,
      business unit or member of the Propinquity Group;

     

    (ii)           any
      Contract that relates primarily to the Propinquity Business;

     

    (iii)           any
      Contract or part thereof, that is otherwise expressly contemplated pursuant
      to
      this Agreement (including pursuant to Section
      2.2(c)) or any of the Ancillary Agreements to be assigned to any
      member of the Propinquity Group;

     

    (iv)           any
      guarantee, indemnity, representation or warranty of or in favour of any member
      of the Propinquity Group; and

     

    (v)           the
      Contracts listed on Schedule 1.1(115).

     

    (116)                      “Propinquity
      Employee” shall mean an active employee or an employee on vacation or on a
      leave of absence (including under the Canada Labour Code, the
Employment Standards Act (Ontario) or other applicable legislation) who
      is employed by, is to be employed effective immediately after the Effective
      Time
      (regardless of whether such employee accepts employment) by or will be employed
      by Propinquity or any member of the Propinquity Group or otherwise primarily
      provides or provided services for the Propinquity Business, including those
      employees of the Predecessor and its Subsidiaries listed in Schedule
      1.1(116).  For the avoidance
      of doubt, Propinquity Employee shall include such employees who, as of the
      Closing Date, are receiving short-term or long-term disability benefits or
      workers’ compensation benefits and, unless otherwise specified herein, any
      Former Propinquity Employees.

     

    (117)                      “Propinquity
      Group” shall mean Propinquity together with each Person that is a Subsidiary
      of Propinquity after the Effective Time, and shall include those entities
      identified as such on Schedule 1.1(117).

     

    (118)                      “Propinquity
      Liabilities” shall mean:

     

    (i)           any
      and all Liabilities, including Liabilities for Taxes, that are expressly
      contemplated by this Agreement or any Ancillary Agreement (or the Schedules
      hereto or thereto, including Schedule 1.1(118)(i)
      and Schedule 2.11 hereto) as Liabilities to be Assumed by any member of
      the Propinquity Group, and all obligations and Liabilities expressly Assumed
      by
      any member of the Propinquity Group under this Agreement or any of the Ancillary
      Agreements;

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    (ii)           any
      and all Liabilities, including Liabilities for Taxes, that relate or related
      primarily to:

     

    (a)           the
      operation or conduct of the Propinquity Business (including the use of any
      and
      all Trademarks in association with the operation or conduct of the Propinquity
      Business), as conducted at any time prior to, on or after the Effective Time
      (including any Liability relating to, arising out of or resulting from any
      act
      or failure to act by any director, officer, employee, agent or representative
      with respect to the Propinquity Business and guarantees or indemnities of or
      in
      favour of the Propinquity Business or a member of the Propinquity
      Group);

     

    (b)           the
      operation or conduct of any business conducted by any member of the Propinquity
      Group at any time after the Effective Time (including any Liability relating
      to,
      arising out of or resulting from any act or failure to act by any director,
      officer, employee, agent or representative with respect to the Propinquity
      Business); or

     

    (c)           any
      Propinquity Employee or any Former Propinquity Employee (other than a
      Corresponding Employee or a Corresponding Former Employee of a Group other
      than
      the Propinquity Group) in respect of the period prior to, on or after the
      Effective Time;

     

    (iii)           any
      and all Liabilities of the Corporate Division that either (x) are or were more
      related to the Propinquity Business than any other Business, or (y) for which
      the Propinquity Business has or had principal use or
      responsibility;

     

    (iv)           any
      Liabilities relating to, arising out of or resulting from any indebtedness
      (including debt securities and asset-backed debt) of any member of the
      Propinquity Group or indebtedness (regardless of the issuer of such
      indebtedness) primarily relating to the Propinquity Business or any indebtedness
      (regardless of the issuer of such indebtedness) secured primarily by any of
      the
      Propinquity Assets (including any Liabilities relating to, arising out of or
      resulting from a claim by a holder of any such indebtedness, in its capacity
      as
      such);

     

    (v)           such
      percentage of the Residual Liabilities that, together with the percentages
      of
      Residual Liabilities forming part of the Entertainment Liabilities, the
      International Distribution Liabilities, the Movie Distribution Liabilities
      and
      the Production Liabilities, equals 50%;

     

    (vi)           all
      Liabilities of CW Media or any of its Subsidiaries (which Subsidiaries were
      Subsidiaries of CW Media immediately prior to the commencement of the Plan
      of
      Separation) relating to, arising out of or resulting from any Action with
      respect to the Plan of Separation made or brought by any third party against
      any
      Party or any member of any Party’s

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    respective
      Group (which, for the avoidance of doubt, excludes any Action by a Party or
      member of such Party’s Group, on the one hand, against another Party or member
      of such other Party’s Group, on the other hand) and primarily relating to the
      Propinquity Business;

     

    (vii)           all
      Liabilities arising under or relating to any Propinquity Contracts;
      and

     

    (viii)                      all
      Liabilities for Taxes that are classified as and deemed to be Propinquity
      Liabilities in Schedule 2.11.

     

    Notwithstanding
      anything to the contrary herein, the Propinquity Liabilities shall not
      include:

     

    
      	
               

            	
              (x)

            	
              any
                Liabilities that are expressly contemplated by this Agreement or
                any
                Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities
                to
                be retained or Assumed by any member of a Group other than the Propinquity
                Group or for which any such Party is liable pursuant to this Agreement
                or
                such Ancillary Agreement; and

            

    

     

    
      	
               

            	
              (y)

            	
              any
                Contracts expressly Assumed by any member of a Group other than the
                Propinquity Group under this Agreement or any of the Ancillary
                Agreements.

            

    

     

    (119)                      “Records”
      shall mean any Contracts, documents, books, records, ledgers or files, whether
      printed, electronic or written.

     

    (120)                      “Residual
      Liabilities” shall mean any Liabilities of the Predecessor and its
      Subsidiaries that are not Entertainment Liabilities, International Distribution
      Liabilities, Movie Distribution Liabilities, Production Liabilities, Propinquity
      Liabilities, Sheltered Liabilities or Specialty Television Liabilities,
      including:

     

    (i)           any
      of the Liabilities set forth on Schedule 1.1(120)(i);

     

    (ii)           any
      and all Liabilities of CW Media or any of its Subsidiaries (which Subsidiaries
      were Subsidiaries of CW Media immediately prior to the Effective Time) relating
      to, arising out of or resulting from any Action with respect to the Plan of
      Separation made or brought by any third party or Governmental Agency against
      any
      Party or any member of any Party’s respective Group (which, for the avoidance of
      doubt, excludes any Action by a Party or member of such Party’s Group, on the
      one hand, against another Party or member of such other Party’s Group, on the
      other hand), other than Liabilities relating to Taxes;

     

    (iii)           any
      and all Liabilities relating to, arising out of or resulting from any (x) claims
      for indemnification by any current or former directors, officers or employees
      of
      CW Media or any of its current or former Subsidiaries, in their capacities
      as
      such, or (y) claims for breach of

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    fiduciary
      duties brought against any current or former directors, officers or employees
      of
      CW Media or any of its current or former Subsidiaries, in their capacities
      as
      such, in each case, relating to any acts, omissions or events on or prior to
      the
      Effective Time;

     

    (iv)           any
      and all costs or expenses actually incurred by any Party (or their respective
      Groups) in connection with obtaining Consents or Governmental Approvals or
      fulfilling conditions required to consummate a deferred Transfer or Assumption,
      as required by Section 2.6; and

     

    (v)           any
      Liabilities for Taxes that are classified as and deemed to be Residual
      Liabilities in Schedule 2.11;

     

    except,
      in the case of each of clauses (ii), (iii) and (iv) above, for any Liability
      that is otherwise specified to be a Corresponding Liability of any Group
      (ignoring for purposes of this clause any references to Residual Liabilities
      in
      the definitions of such terms), as the case may be, or otherwise specifically
      allocated to any Party or Parties under this Agreement or any Ancillary
      Agreement and, for the avoidance of doubt, except for the Corporate Retention
      and Severance Liabilities and the Executive Retention and Severance
      Liabilities.

     

    (121)                      “Restricted
      Person” shall have the meaning set forth in Section 4.1.

     

    (122)                      “Security
      Interest” shall mean any mortgage, security interest, pledge, lien, charge,
      claim, option, right to acquire, voting or other restriction, right-of-way,
      covenant, condition, easement, encroachment, restriction on transfer, or other
      encumbrance of any nature whatsoever, excluding restrictions on transfer under
      securities Laws.

     

    (123)                      “Separation
      Expenses” shall mean the fees, costs and expenses (including third party
      fees, costs and expenses and employment-related costs and expenses) set forth
      on
Schedule 1.1(123) incurred by any of
      the Parties on a non-recurring basis directly as a result of the Acquisition
      and
      the Plan of Separation.

     

    (124)                      “Separation
      Transfers” shall have the meaning set forth in Section 2.2(a)(iii).

     

    (125)                      “Shared
      Contract” shall have the meaning set forth in Section 2.2(c)(i).

     

    (126)                      “Shared
      Policies” shall mean, without duplication, all Corresponding Shared Policies
      of any New Entity.

     

    (127)                      “Shelter
      Business” shall mean the business operated by the Shelter
      Group.

     

    (128)                      “Shelter
      Group” shall mean ShelterCo together with each Person that is a Subsidiary
      of ShelterCo after the Effective Time, and shall include those entities
      identified as such on Schedule 1.1(128).

     

    (129)                      “Shelter
      Transfer” shall have the meaning set forth in Section 2.2(a)(iv).

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    (130)                      “ShelterCo”
      shall have the meaning set forth in the preamble.

     

    (131)                      “Sheltered
      Assets” shall mean the ownership interests in all Business Entities in the
      Shelter Group and all Assets held immediately prior to the Effective Time by
      any
      such Business Entity.  Notwithstanding the foregoing, the Sheltered
      Assets shall not include any Assets that are expressly contemplated by this
      Agreement or any Ancillary Agreement (or the Schedules hereto or thereto) as
      Assets to be retained by or Transferred to any member of any Group other than
      the Shelter Group.

     

    (132)                      “Sheltered
      Liabilities” shall mean all Liabilities, including Liabilities for Taxes,
      held immediately prior to the Effective Time by any Business Entity in the
      Shelter Group and all Liabilities for Taxes that are classified as and deemed
      to
      be Sheltered Liabilities in Schedule 2.11.  Notwithstanding the
      foregoing, the Sheltered Liabilities shall not include any Liabilities that
      are
      expressly contemplated by this Agreement or any Ancillary Agreement (or the
      Schedules hereto or thereto) as Liabilities to be retained by or Assumed by
      any
      member of any Group other than the Shelter Group or for which any such Party
      is
      liable pursuant to this Agreement or such Ancillary Agreement other than
      guarantees or indemnities of or in favour of the Shelter Business or
      a  member of the Shelter Group that are retained or Assumed by a
      member of another Group.

     

    (133)                      “Software”
      shall mean all computer programs (whether in source code, object code, or other
      form), algorithms, databases, compilations and data, and technology supporting
      the foregoing, and all documentation, including flowcharts and other logic
      and
      design diagrams, technical, functional and other specifications, and user and
      training materials related to any of the foregoing.

     

    (134)                      “Specialty
      Television Assets” shall mean all Assets of CW Media or its Subsidiaries
      other than the Corresponding Assets of any Group other than the STV Group,
      including:

     

    (i)           the
      ownership interests in CW Media and all Business Entities in the STV
      Group;

     

    (ii)           all
      Specialty Television Contracts, any rights or claims arising thereunder, and
      any
      other rights or claims or contingent rights or claims primarily relating to
      or
      arising from any Specialty Television Asset or the Specialty Television
      Business;

     

    (iii)           subject
      to Article IX, any rights of any member of
      the STV Group under any Policies, including any rights thereunder arising after
      the STV Closing Date in respect of any Policies that are occurrence
      policies;

     

    (iv)           any
      and all Assets owned or held immediately prior to the commencement of the
      implementation of the Plan of Separation by CW Media or any of its Subsidiaries
      (including, prior to the Closing Date, by any Group) (A) that comprise or
      comprised or relate or related primarily to the Specialty Television Business
      or
      (B) that comprise or comprised the Corporate Division and either (x) are or
      were
      more related to the Specialty

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    Television
      Business than any other Business, or (y) for which the Specialty Television
      Business has or had principal use or responsibility;

     

    (v)           the
      Assets set forth on Schedule 1.1(134)(vi)
      and any
      and all Assets that are expressly contemplated by this Agreement or any
      Ancillary Agreement as Assets which have been or are to be Transferred to STV
      or
      any other member of the STV Group;

     

    (vi)           any
      and all furnishings and office equipment located at a physical site of which
      the
      ownership or leasehold interest is being Transferred to STV or a subsidiary
      of
      STV; provided, that personal computers shall be Transferred to the Party
      or Subsidiary of the Party that, following the Effective Time, employs the
      applicable employee who, prior to the Effective Time, used such personal
      computer; and

     

    (vii)           all
      Cash owned by any member of the STV Group that is not a wholly-owned Subsidiary
      of STV.

     

    Notwithstanding
      the foregoing, the Specialty Television Assets shall not include (i) any Cash,
      except as provided in clause (vii) of this
Section 1.1(134);
      or (ii) any Assets
      that are expressly contemplated by this Agreement or any Ancillary Agreement
      (or
      the Schedules hereto or thereto) as Assets to be retained by or Transferred
      to
      any member of a Group other than the STV Group.

     

    In
      the
      event of any inconsistency or conflict which may arise in the application or
      interpretation of any of the foregoing provisions, for the purpose of
      determining what is and is not a Specialty Television Asset, any item explicitly
      included on a Schedule referred to in this Section 1.1(134) shall take priority over any
      provision of
      the text hereof.

     

    (135)                      “Specialty
      Television Business” shall mean (i) the business of owning and operating
      specialty television broadcasting channels, including those businesses regulated
      by the Canadian Radio-television and Telecommunications Commission, conducted
      primarily through the members of the STV Group prior to the Effective Time
      and
      (ii) the businesses and operations of Business Entities acquired or established
      by or for STV or any of its Subsidiaries after the date of this
      Agreement.

     

    (136)                      “Specialty
      Television Contracts” shall mean the following Contracts to which CW Media
      or any of its Affiliates is a party or by which it or any of its Affiliates
      or
      any of their respective Assets is bound, whether or not in writing, except
      for
      any such Contract or part thereof (i) that is expressly contemplated not to
      be
      Transferred by any member of any Group other than the STV Group to the STV
      Group
      or (ii) that is expressly contemplated to be Transferred to (or remain with)
      any
      member of any Group other than the STV Group, pursuant to any provision of
      this
      Agreement or any Ancillary Agreement:

     

    (i)           any
      Contract entered into in the name of, or expressly on behalf of, any division,
      business unit or member of the STV Group;

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

    (ii)           any
      Contract that relates primarily to the Specialty Television
      Business;

     

    (iii)           any
      Contract or part thereof, that is otherwise expressly contemplated pursuant
      to
      this Agreement (including pursuant to Section
      2.2(c)) or any of the Ancillary Agreements to be assigned to any
      member of the STV Group;

     

    (iv)           any
      guarantee, indemnity, representation or warranty of or in favour of any member
      of the STV Group; and

     

    (v)           the
      Contracts listed on Schedule 1.1(136).

     

    (137)                      “Specialty
      Television Liabilities” shall mean:

     

    (i)           any
      and all Liabilities, including Liabilities for Taxes, that are expressly
      contemplated by this Agreement or any Ancillary Agreement (or the Schedules
      hereto or thereto, including Schedule 1.1(137)(i)
      or
Schedule 2.11 hereto) as Liabilities to be Assumed by any member of the
      STV Group, and all obligations and Liabilities expressly Assumed by any member
      of the STV Group under this Agreement or any of the Ancillary
      Agreements;

     

    (ii)           any
      and all Liabilities, including Liabilities for Taxes, that relate or related
      primarily to:

     

    (a)           the
      operation or conduct of the Specialty Television Business (including the use
      of
      any and all Trademarks in association with the operating or conduct of the
      Specialty Television Business), as conducted at any time prior to, on or after
      the Effective Time (including any Liability relating to, arising out of or
      resulting from any act or failure to act by any director, officer, employee,
      agent or representative with respect to the Specialty Television Business and
      guarantees or indemnities of or in favour of the STV Business or a member of
      the
      STV Group);

     

    (b)           the
      operation or conduct of any business conducted by any member of the STV Group
      at
      any time after the Effective Time (including any Liability relating to, arising
      out of or resulting from any act or failure to act by any director, officer,
      employee, agent or representative with respect to the Specialty Television
      Business); or

     

    (c)           any
      STV Employee or any Former STV Employee (other than a Corresponding Employee
      or
      a Corresponding Former Employee of a Group other than the STV Group) in respect
      of the period prior to, on or after the Effective Time;

     

    (iii)           any
      and all Liabilities of the Corporate Division that either (x) are or were more
      related to the Specialty Television Business than any other

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    Business,
      or (y) for which the Specialty Television Business has or had principal use
      or
      responsibility;

     

    (iv)           any
      Liabilities relating to, arising out of or resulting from any indebtedness
      (including debt securities and asset-backed debt) of any member of the STV
      Group
      or indebtedness (regardless of the issuer of such indebtedness) primarily
      relating to the Specialty Television Business or any indebtedness (regardless
      of
      the issuer of such indebtedness) secured primarily by any of the Specialty
      Television Assets (including any Liabilities relating to, arising out of or
      resulting from a claim by a holder of any such indebtedness, in its capacity
      as
      such);

     

    (v)           those
      Separation Expenses allocated to the STV Group in accordance with Schedule
      1.1(123);

     

    (vi)           50%
      of the Residual Liabilities;

     

    (vii)           those
      Corporate Retention and Severance Liabilities and Executive Retention and
      Severance Liabilities allocated to the STV Group in accordance with Schedule
      1.1(123);

     

    (viii)                      all
      Liabilities of CW Media or any of its Subsidiaries (which Subsidiaries were
      Subsidiaries of CW Media immediately prior to the commencement of the Plan
      of
      Separation) relating to, arising out of or resulting from any Action with
      respect to the Plan of Separation made or brought by any third party against
      any
      Party or any member of any Party’s respective Group (which, for the avoidance of
      doubt, excludes any Action by a Party or member of such Party’s Group, on the
      one hand, against another Party or member of such other Party’s Group, on the
      other hand) and primarily relating to the Specialty Television
      Business;

     

    (ix)           all
      Liabilities arising under or relating to any Specialty Television Contracts;
      and

     

    (x)           all
      Liabilities for Taxes that are classified as and deemed to be Specialty
      Television Liabilities in Schedule 2.11.

     

    Notwithstanding
      anything to the contrary herein, the Specialty Television Liabilities shall
      not
      include:

     

    
      	
               

            	
              (x)

            	
              any
                Liabilities that are expressly contemplated by this Agreement or
                any
                Ancillary Agreement (or the Schedules hereto or thereto) as Liabilities
                to
                be retained or Assumed by any member of any Group other than the
                STV Group
                or for which any such Group is liable pursuant to this Agreement
                or such
                Ancillary Agreement; and

            

    

     

    
      	
               

            	
              (y)

            	
              any
                Contracts expressly Assumed by any member of any Group other than
                the STV
                Group under this Agreement or any of the Ancillary
                Agreements.

            

    

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (138)

            	
              “Specialty
                Television Transfer” shall have the meaning set forth in Section
                2.2(a)(i).

            

    

     

    (139)                      “STV”
      shall have the meaning set forth in the preamble.

     

    (140)                      “STV
      Employee” shall mean an active employee or an employee on vacation or on a
      leave of absence (including under the Canada Labour Code, the
Employment Standards Act (Ontario) or other applicable legislation) who
      is employed by, is to be employed effective immediately after the Effective
      Time
      (regardless of whether such employee accepts employment) by or will be employed
      by STV or any member of the STV Group or otherwise primarily provides or
      provided services for the Specialty Television Business, including those
      employees of the Predecessor and its Subsidiaries listed in Schedule
      1.1(140).  For the avoidance
      of doubt, STV Employee shall include, during the term of the Transition Services
      Agreement, the employees listed in Exhibit B to the Transition Services
      Agreement and shall include such employees who, as of the Closing Date, are
      receiving short-term or long-term disability benefits or workers’ compensation
      benefits and, unless otherwise specified herein, any Former STV
      Employees.

     

    (141)                      “STV
      Group” shall mean STV together with each Person that is a Subsidiary of STV
      after the Effective Time, and shall include those entities identified as such
      on
Schedule 1.1(141).

     

    (142)                      “Steps
      Memo” shall have the meaning set forth in the recitals.

     

    (143)                      “Subsidiary”
      shall mean with respect to any Person (i) a corporation, fifty percent (50%)
      or
      more of the voting or capital stock of which is, as of the time in question,
      directly or indirectly owned by such Person and (ii) any other partnership,
      joint venture, association, joint stock company, trust, unincorporated
      organization or other entity in which such Person, directly or indirectly,
      owns
      fifty percent (50%) or more of the equity economic interest thereof or has
      the
      power to elect or direct the election of fifty percent (50%) or more of the
      members of the governing body of such entity or otherwise has control over
      such
      entity (e.g., as the managing partner of a partnership).

     

    (144)                      “Taxes”
      shall mean all taxes, duties, fees, premiums, assessments, imposts, levies
      and
      other charges of any kind whatsoever imposed by any Governmental Entity or
      payable under any Laws, together with all interest, penalties, fines, additions
      to tax or other additional amounts imposed in respect thereof, including those
      levied on, or measured by, or referred to as gross receipts, capital,
      alternative, net worth, transfer, land transfer, sales, goods and services,
      harmonized sales, use, value-added, excise, stamp, withholding, business,
      franchising, property, employer health, payroll, employment, health, social
      services, education and social security taxes, Income Taxes, all surtaxes,
      all
      customs duties and import and export taxes, all license, franchise and
      registration fees and all employment insurance, health insurance, workers’
compensation and Canada, Québec and other government pension plan premiums or
      contributions.

     

    (145)                      “Tax
      Contest” shall mean any proceeding, investigation, audit, reassessment,
      objection, appeal or claim now pending, threatened or which may arise in
      the

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    future
      in
      connection with Taxes that are disputed by the taxpayer and which may result
      in
      a Liability.

     

    (146)                      “Tax
      Return” shall mean all returns, reports, declarations, elections, notices,
      filings, forms,  information returns, statements and other documents
      (whether in tangible, electronic or other form) and including any amendments,
      schedules, attachments, supplements, appendices and exhibits thereto, made,
      prepared, filed or required to be made, prepared or filed in respect of
      Taxes.

     

    (147)                      “Tax
      Step-Up” means the increase in the cost of non-depreciable capital property
      under paragraphs 88(1)(c) and (d) of the Income Tax Act (Canada)
      available to AcquireCo and its successors on (i) the amalgamation referred
      to in
      Step 120 in the Steps Memo (in respect of non-depreciable capital property
      owned
      by the Predecessor), (ii) the amalgamation referred to in Step 129 in the Steps
      Memo (in respect of non-depreciable capital property owned by Alliance Atlantis
      Productions Ltd.) or (iii) on the amalgamation referred to in Step 134 in the
      Steps Memo (in respect of non-depreciable capital property owned by Alliance
      Atlantis Broadcasting Inc.).

     

    (148)                      “Third-Party
      Claim” shall have the meaning set forth in Section 6.3(b).

     

    (149)                      “Third-Party
      Proceeds” shall have the meaning set forth in Section 6.7(a).

     

    (150)                      “Trademarks”
      shall mean all Canadian, U.S. and foreign trade-marks or service marks (whether
      or not registered), corporate names, trade names, domain names, logos, slogans,
      designs, trade dress and other similar designations of source or origin,
      together with the goodwill symbolized by any of the foregoing.

     

    (151)                      “Transfer”
      shall have the meaning set forth in Section
      2.2(a)(i).

     

    (152)                      “Transition
      Date” shall have the meaning set forth in Section 5.3(a).

     

    (153)                      “Transition
      Services Agreement” means the transition services agreement dated as of the
      date of this Agreement between CW Media, certain members of the Movie Group
      and
      certain other parties.

     

    (154)                      “Unallocated
      Expenses” means those fees, costs and expenses designated as Unallocated
      Expenses in accordance with Schedule 1.1(123).

     

    (155)                      “2007
      Internal Control Audit and Management Assessments” shall have the meaning
      set forth in Section 4.3(a).

     

    Section
      1.2.                                References;
      Interpretation.  References in this Agreement to any gender
      include references to all genders, and references to the singular include
      references to the plural and vice versa.  Unless the context otherwise
      requires, the words “include”, “includes” and “including” when used in this
      Agreement shall be deemed to be followed by the phrase “without
      limitation”.  Unless the context otherwise requires, references in
      this Agreement to Articles, Sections, Annexes, Exhibits

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    and
      Schedules shall be deemed references to Articles and Sections of, and Annexes,
      Exhibits and Schedules to this Agreement.  Unless the context
      otherwise requires, the words “hereof”, “hereby” and “herein” and words of
      similar meaning when used in this Agreement refer to this Agreement in its
      entirety and not to any particular Article, Section or provision of this
      Agreement.

     

    Section
      1.3.                                Schedules
      and Exhibits.  The schedules and exhibits to this Agreement,
      listed below, are an integral part of this Agreement:

     

    
      	
              Schedule

            	
              Description

            
	
              1

            	
              Additional
                Parties

            
	
              1.1(11)

            	
              Ancillary
                Agreements

            
	
              1.1(23)

            	
              Continuing
                Arrangements

            
	
              1.1(29)

            	
              Corporate
                Retention and Severance Liabilities

            
	
              1.1(49)(v)

            	
              Entertainment
                Assets

            
	
              1.1(51)

            	
              Entertainment
                Contracts

            
	
              1.1(52)

            	
              Entertainment
                Employees

            
	
              1.1(53)

            	
              Entertainment
                Entities

            
	
              1.1(54)(i)

            	
              Entertainment
                Liabilities

            
	
              1.1(55)

            	
              Executive
                Retention and Severance Liabilities

            
	
              1.1(78)(v)

            	
              International
                Assets

            
	
              1.1(80)(v)

            	
              International
                Contracts

            
	
              1.1(81)(i)

            	
              International
                Liabilities

            
	
              1.1(82)

            	
              International
                Employees

            
	
              1.1(83)

            	
              International
                Entities

            
	
              1.1(89)(v)

            	
              Movie
                Distribution Assets

            
	
              1.1(91)

            	
              Movie
                Contracts

            
	
              1.1(92)(i)

            	
              Movie
                Liabilities

            
	
              1.1(93)

            	
              Movie
                Employees

            
	
              1.1(94)

            	
              Movie
                Entities

            
	
              1.1(106)(v)

            	
              Production
                Assets

            
	
              1.1(108)

            	
              Production
                Contracts

            
	
              1.1(109)

            	
              Production
                Employees

            
	
              1.1(110)

            	
              Production
                Entities

            
	
              1.1(111)(i)

            	
              Production
                Liabilities

            

    

    
      
              

           
      

                            
                          
    

        
        

      

      
        39

        
          

        

      

      
        
        

      

    

    

    
      	
              1.1(113)(v)

            	
              Propinquity
                Assets

            
	
              1.1(115)

            	
              Propinquity
                Contracts

            
	
              1.1(116)

            	
              Propinquity
                Employees

            
	
              1.1(117)

            	
              Propinquity
                Entities

            
	
              1.1(118)(i)

            	
              Propinquity
                Liabilities

            
	
              1.1(120)(i)

            	
              Residual
                Liabilities

            
	
              1.1(123)

            	
              Separation
                Expenses

            
	
              1.1(128)

            	
              Shelter
                Entities

            
	
              1.1(132)

            	
              Shelter
                Contracts and Liabilities

            
	
              1.1(134)(v)

            	
              Specialty
                Television Assets

            
	
              1.1(136)

            	
              Specialty
                Television Contracts

            
	
              1.1(137)(i)

            	
              Specialty
                Television Liabilities

            
	
              1.1(140)

            	
              Specialty
                Television Employees

            
	
              1.1(141)

            	
              Specialty
                Television Entities

            
	
              2.5

            	
              Terminated
                Inter-Corporate Contracts and Arrangements

            
	
              2.11

            	
              Allocation
                of Tax Liabilities

            
	
              5.1(b)

            	
              AA
                Plans

            
	
              5.1(c)

            	
              Movie
                and Entertainment Plans

            

    

    

    
      	
              Exhibit

            	
              Description

            
	
              A

            	
              Steps
                Memo dated August 15, 2007

            

    

    

    ARTICLE
      II

     

    

     

    THE
      SEPARATION

     

    Section
      2.1.                                General.  Subject
      to the terms and conditions of this Agreement, the Parties shall consummate,
      and
      shall cause their respective Affiliates to consummate, the transactions
      contemplated hereby and by the Ancillary Agreements.  It is the intent
      of the Parties that after consummation of the transactions contemplated hereby
      and by the Ancillary Agreements in the order contemplated by and otherwise
      in
      accordance with the Steps Memo, subject to Section
      2.6, members of each Group

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

    will
      conduct such Group’s Corresponding Business, own or hold all of CW Media’s and
      its Subsidiaries’ right, title and interest in and to such Group’s Corresponding
      Assets and Assume directly or indirectly (or retain) such Group’s Corresponding
      Liabilities.

     

    Section
      2.2.                                Transfer
      of Assets.

     

    (a)           On
      or prior to the Effective Time and to the extent not already completed, the
      Parties shall (and shall cause their respective Affiliates to) take all actions
      necessary or advisable to (i) effect the transactions set forth in steps 135
      to
      161 of the Steps Memo and (ii) enter into the associated applicable Ancillary
      Agreements listed under the heading “Post-Restructuring Agreements” on the
      Closing Agenda and consummate the transactions contemplated thereby (but, for
      the avoidance of doubt, shall not oblige STV to exercise any of the put rights
      referred to in step 138 and steps 161.1 to 161.4 of the Steps
      Memo).  In particular, and without limiting the
      foregoing:

     

    (i)           CW
      Media shall directly or indirectly transfer, contribute, assign and convey
      or
      cause to be transferred, contributed, assigned and conveyed (“Transfer”)
      to CW Media or a member of the STV Group that is a Subsidiary of CW Media all
      of
      CW Media’s and its Subsidiaries’ right, title and interest in and to the
      Specialty Television Assets to the extent not already held by a member of the
      STV Group (the “Specialty Television Transfer”).  The Specialty
      Television Transfer may be made in a single Transfer or a series of Transfers,
      provided that following such Transfer or series of Transfers, CW Media directly
      or indirectly owns all of the Specialty Television Assets.

     

    (ii)           CW
      Media shall directly or indirectly Transfer to CanCo all of CW Media’s and its
      Subsidiaries’ right, title and interest in and to the Corresponding Assets of
      each Group other than the STV Group and the Shelter Group to the extent not
      already held by a member of a Group (other than the STV Group and the Shelter
      Group), in accordance with, and for the consideration provided for under
      (including assumption of certain Liabilities), the applicable Ancillary
      Agreements listed under the heading “Post-Restructuring Agreements —
Intermediate Transfers” on the Closing Agenda (the “Intermediate
      Transfers”).  The Intermediate Transfers may be made in a single
      Transfer or a series of Transfers that reaches the same result.

     

    (iii)           Following
      the Intermediate Transfers, CanCo shall directly or indirectly Transfer to
      each
      Group, other than the STV Group and the Shelter Group, all of CanCo’s and its
      Subsidiaries’ right, title and interest in and to the Corresponding Assets of
      such Group to the extent not already held by a member of a Group (other than
      the
      STV Group and the Shelter Group), in accordance with, and for the consideration
      provided for under (including assumption of certain Liabilities), the applicable
      Ancillary Agreements listed under the heading “Post-Restructuring Agreements
—

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    Separation
      Transfers” on the Closing Agenda (together with the Intermediate Transfers, the
“Separation Transfers”).  The Separation Transfers may be made
      in a single Transfer or a series of Transfers that reaches the same
      result.

     

    (iv)           CW
      Media shall, directly or indirectly, Transfer to ShelterCo all of CW Media’s and
      its Subsidiaries’ right, title and interest in and to the Sheltered Assets to
      the extent not already held by a member of the Shelter Group (the “Shelter
      Transfer”).  The Shelter Transfer may be made in a single Transfer
      or a series of Transfers, provided that following such Transfer or series of
      Transfers, ShelterCo directly or indirectly owns all of the Sheltered
      Assets.

     

    (b)           Unless
      otherwise agreed to by the Parties or as otherwise set forth in an Ancillary
      Agreement, each Party shall be entitled to designate the Business Entity within
      such Party’s respective Group to which any Assets are to be Transferred pursuant
      to this Section 2.2 or Section
      2.6.

     

    (c)           Treatment
      of Shared Contracts.  Without limiting the generality of the
      obligations set forth in Sections 2.2(a) and 2.2(b):

     

    (i)           Unless
      the Parties otherwise agree or the benefits of any Contract described in
Section 2.2(c)(i) are expressly conveyed to the applicable Party (or its
      Group) pursuant to an Ancillary Agreement, (A) any Contract at least one of
      the
      parties to which is a third party (that is, other than the Predecessor or any
      of
      its Subsidiaries) that is a Corresponding Asset of a Group but inures in part
      to
      the benefit or burden of any member of any other Group, as the case may be,
      (each, a “Shared Contract”), shall be assigned in part to the applicable
      member(s) of the applicable Groups, if so assignable and to be assigned as
      provided in Section 2.2(a), or appropriately
      amended so that each of the Parties or the members of their respective Groups
      shall be entitled to the rights and benefits, and shall Assume the related
      portion of any Liabilities, inuring to their Corresponding Businesses;
provided, however, that (x) in no event shall any member of any
      Group be required to assign (or amend) any Shared Contract in its entirety
      or to
      assign a portion of any Shared Contract (including any Policy) which is not
      assignable (or cannot be amended) by its terms (including any terms imposing
      consents or conditions on an assignment where such consents or conditions have
      not been obtained or fulfilled), (y) if any Shared Contract cannot be so
      partially assigned by its terms or otherwise, or cannot be amended or if such
      assignment or amendment would impair the benefit the parties thereto derive
      from
      such Shared Contract, the Parties shall, and shall cause each of their
      respective Subsidiaries to, take such other reasonable and permissible actions
      to cause a member of each Group to receive the benefit of that portion of each
      Shared Contract that relates to the Corresponding Business of such

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    Group,
      as
      the case may be (in each case, to the extent so related) as if such Shared
      Contract had been assigned to (or amended to allow) a member of the applicable
      Group pursuant to this Section 2.2  and to bear the burden of
      the corresponding Liabilities (including any Liabilities that may arise by
      reason of such arrangement) as if such Liabilities had been Assumed by a member
      of the applicable Group pursuant to Section 2.3 and (z) no such
      assignment or amendment shall be undertaken if such assignment or amendment
      could adversely affect the Tax Step-Up.

     

    (ii)           Each
      of the Parties shall, and shall cause the members of its Group to, (A) treat
      for
      purposes of all Taxes the portion of each Shared Contract inuring to its
      Corresponding Business as Assets owned by, and/or Liabilities of, as applicable,
      such Party or such members of its Group, as applicable, not later than the
      Effective Time and (B) neither report nor take any position with respect to
      Taxes (on a Tax Return or otherwise) inconsistent with such treatment (unless
      required by a change in applicable Tax Law or good faith resolution of a Tax
      Contest relating to Taxes).

     

    Nothing
      in this Section 2.2(c) shall require any member of any Group to make any
      material payment (except to the extent advanced, Assumed or agreed in advance
      to
      be reimbursed by any member of the other Group), incur any material obligation
      or grant any material concession for the benefit of any member of any other
      Group in order to effect any assignment, amendment or other transaction
      contemplated by this Section 2.2(c).

    

    Section
      2.3.                                Assumption
      and Satisfaction of Liabilities; Litigation.

     

    (a)           Except
      as otherwise expressly set forth in any Ancillary Agreement, from and after
      the
      Effective Time, to the extent not already completed, each Party shall, or shall
      cause a member of its respective Group to, accept, assume (or, as applicable,
      retain) and perform, discharge and fulfill, in accordance with their respective
      terms (“Assume”) all of its Corresponding Liabilities, in each case,
      regardless of (A) when or where such Liabilities arose or arise, (B) whether
      the
      facts upon which they are based occurred prior to, on or subsequent to the
      Effective Time, (C) where or against whom such Liabilities are asserted or
      determined and (D) regardless of whether arising from or alleged to arise from
      negligence, recklessness, violation of Law, fraud or misrepresentation by any
      member of any Group, as the case may be, or any of their past or present
      respective directors, officers, employees, agents, Subsidiaries or
      Affiliates.

     

    (b)           If
      any New Entity that is not assigned the responsibility for assuming and
      controlling the defense of an Action pursuant to the Schedules to this Agreement
      but has Liability or indemnification obligations arising out of such Action,
      (i)
      such New Entity shall have the right to employ separate counsel and to
      participate in the defense, compromise, or settlement thereof, at its own
      expense; (ii) in any event, such New Entity shall cooperate with the defending
      party in such defense and make available to the defending party all witnesses,
      pertinent Information, materials and information in such New Entity’s possession
      or under such New Entity’s control relating thereto as are reasonably required
      by the defending party; and (iii)

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

    neither
      the defending party nor such New Entity may settle, compromise or consent to
      entry of any judgment with respect to such Action without the consent of the
      other, which consent shall not be unreasonably withheld, conditioned or
      delayed.

     

    Section
      2.4.                                Intercompany
      Accounts and Arrangements.  

     

    (a)           Subject
      to the terms of the Ancillary Agreements, all intercompany receivables,
      payables, loans and accounts, if any, between any member of one Group, on the
      one hand, and any member of another Group, on the other hand:

     

    (i)           which
      exist and are reflected in the accounting records of the relevant Parties as
      of
      the Effective Time and which were generated in the ordinary course of business
      consistent with past practice after June 30, 2007, shall remain outstanding
      and
      be settled in the ordinary course in accordance with the terms applicable
      thereto; and

     

    (ii)           which
      exist at the Effective Time, other than those described in clause (i) of this
Section 2.4(a), and that are not settled as part of
      the transactions described or referred to in the Steps Memo, if any, shall
      be
      forgiven.

     

    (b)           As
      between any two Parties (and the members of their respective Groups) all
      payments and reimbursements received after the Effective Time by any Party
      (or
      member of its Group) that relate to a Corresponding Business, a Corresponding
      Asset  or a Corresponding Liability of another Party (or member of its
      Group) shall be held by such Party in trust for the use and benefit of the
      Party
      (or member of its Group) entitled thereto (at the expense of the Party or member
      of its Group entitled thereto) and, promptly upon receipt by such Party (or
      member of its Group) of any such payment or reimbursement, such Party shall
      pay
      (or cause the applicable member of its Group to pay) over to the applicable
      Party (or member of its Group) the amount of such payment or
      reimbursement.

     

    Section
      2.5.                                Limitation
      of Liability.  

     

    (a)           No
      Party (or member of its Group) shall have any Liability to any other Party
      (or
      member of its Group) arising from or relating to any inaccuracy in any
      information exchanged or provided pursuant to this Agreement which is an
      estimate or forecast, or which is based upon an estimate or
      forecast.

     

    (b)           Subject
      to Section 2.5(c), no Party (or member of
      its Group) shall be liable to any other Party (or member of its Group) based
      upon, arising out of or resulting from any Contract, arrangement, course of
      dealing or understanding existing on or prior to the Effective Time between
      a
      Party (or a member of its Group) and any other Party or Parties (or members
      of
      their Group or Groups) and each Party (or member of its Group) hereby terminates
      any and all Contracts, arrangements, course of dealings or understandings
      between or among it and any other Party (or member of its Group) effective
      as of
      the Effective Time, including the Contracts

     

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

    set
      forth
      on Schedule 2.5, and any Liability thereunder, whether or not in writing,
      is hereby irrevocably cancelled, released and waived.  No such
      terminated Contract, arrangement, course of dealing or understanding (including
      any provision thereof which purports to survive termination) shall be of any
      further force or effect after the Effective Time.

     

    (c)           The
      provisions of Section 2.5(b) shall not apply
      to any of the following Contracts, arrangements, course of dealings or
      understandings (or to any of the provisions thereof):

     

    (i)           this
      Agreement (including intercompany receivables, payables loans and accounts,
      which shall be dealt with in accordance with Section
      2.4), any Ancillary Agreement, any Continuing Arrangements or any
      Contract entered into in connection herewith or in order to consummate the
      transactions contemplated hereby or thereby or by the Plan of
      Separation;

     

    (ii)           any
      agreements, arrangements, commitments or understandings to which any Person
      other than the Parties and their respective Affiliates is a party (it being
      understood that to the extent that the rights and obligations of the Parties
      and
      the members of their respective Groups under any such Contracts constitute
      Corresponding Assets or Corresponding Liabilities of any Group, such Contracts
      shall be assigned or retained pursuant to Article
      II); and

     

    (iii)           any
      agreements, arrangements, commitments or understandings to which any
      non-wholly-owned Subsidiary of AcquireCo or any New Entity is a
      party.

     

    Section
      2.6.                                Transfers
      Not Effected On or Prior to the Effective Time; Transfers Deemed Effective
      as of
      the Effective Time.

     

    (a)           To
      the extent that any Transfers contemplated by this Article II shall not have been consummated on
      or prior to the Effective Time, the Parties shall cooperate to effect such
      Transfers as promptly following the Effective Time as shall be practicable,
      provided that no such Transfer shall be made if such Transfer could adversely
      affect the Tax Step-Up.  Nothing herein shall be deemed to require the
      Transfer of any Assets or the Assumption of any Liabilities which by their
      terms
      or operation of Law cannot be Transferred; provided, however, that
      the Parties and their respective Subsidiaries shall cooperate and use
      commercially reasonable efforts to seek to obtain any necessary Consents or
      Governmental Approvals and to satisfy any necessary conditions for the Transfer
      of all Assets and Assumption of all Liabilities contemplated to be Transferred
      and Assumed pursuant to this Article
      II.  In the event that any such Transfer of Assets or
      Assumption of Liabilities has not been consummated, from and after the Effective
      Time (i) the Party retaining or a member of whose Group has retained such Asset
      shall thereafter hold or cause to be held such Asset for the use and benefit
      of
      the Party or the

     

    
      
        
        

      

      
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    member
      of
      its Group entitled thereto (at the expense of the Person entitled thereto)
      and
      (ii) the Party intended or the member of whose Group is intended to Assume
      such
      Liability shall, or shall cause the applicable member of its Group to, pay
      or
      reimburse the Party or the member of its Group retaining such Liability for
      all
      amounts paid or incurred in connection with the retention of such
      Liability.  In addition, the Party or the member of its Group
      retaining such Asset or Liability shall, insofar as reasonably possible and
      to
      the extent permitted by applicable Law, treat or cause to be treated such Asset
      or Liability in the ordinary course of business in accordance with past practice
      and take such other actions as may be reasonably requested by the Party or
      the
      member of its Group to which such Asset is to be Transferred or by the Party
      or
      the member of its Group Assuming such Liability (at the expense of the
      requesting Party) in order to place such Party or the member of its Group,
      insofar as reasonably possible, in the same position as if such Asset or
      Liability had been Transferred or Assumed as contemplated hereby and so that
      all
      the benefits and burdens relating to such Asset or Liability, including
      possession, use, risk of loss, potential for gain, and dominion, control and
      command over such Asset or Liability, are to inure from and after the Effective
      Time to the member or members of the Group entitled to the receipt of such
      Asset
      or required to Assume such Liability.  In furtherance of the
      foregoing, the Parties agree that, as of the Effective Time, each Party and
      its
      Group shall be deemed to have acquired complete and sole beneficial ownership
      over all of the Assets, together with all rights, powers and privileges incident
      thereto, and shall be deemed to have Assumed in accordance with the terms of
      this Agreement all of the Liabilities, and all duties, obligations and
      responsibilities incident thereto, which such Party and its Group is entitled
      to
      acquire or required to Assume pursuant to the terms of this
      Agreement.

     

    (b)           If
      and when the Consents, Governmental Approvals and/or conditions, the absence
      or
      non-satisfaction of which caused the deferral of Transfer of any Asset or
      deferral of the Assumption of any Liability pursuant to Section 2.6(a), are obtained or satisfied, the
      Transfer, assignment, Assumption or novation of the applicable Asset or
      Liability shall be effected in accordance with and subject to the terms of
      this
      Agreement and/or the applicable Ancillary Agreement, provided that no such
      Transfer shall be made if such Transfer could adversely affect the Tax
      Step-Up.

     

    (c)           If
      any Party or any member of its Group owns any Asset that was owned by (or was
      obtained by such Party or any member of its Group pursuant to a right owned
      by)
      CW Media or its Subsidiaries immediately prior to the Effective Time, that,
      although not Transferred pursuant to this Agreement, is agreed by the owner
      of
      such Asset and another Party or a member of its Group in their reasonable,
      good
      faith judgment to be an Asset that more properly belongs to the other Party’s
      Group, or an Asset that is necessary for the operation of the Corresponding
      Business of such Group, as each was operated prior to the Effective Time, then
      the owner of such Asset shall, as applicable, (i) Transfer any such Asset to
      the
      Party or a member of its Group identified as the appropriate transferee and
      following such Transfer, such Asset shall be a Corresponding Asset of the
      transferee’s Group, or (ii) grant such mutually agreeable rights with respect to
      such Asset to permit such continued use, subject to, and consistent with this
      Agreement, including with respect to Assumption of associated Liabilities,
      provided that no action referred to in clause (i) or (ii) of this Section 2.6(c) shall be taken if such action
      could adversely affect the Tax Step-Up.

     

    
      
        
        

      

      
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    (d)           After
      the Effective Time, each Party and its Group may receive mail, packages and
      other communications properly belonging to another Party or its
      Group.  Accordingly, at all times after the Effective Time, each Party
      authorizes the other applicable Party and its Group to receive and open all
      mail, packages and other communications received by such other Party or its
      Group and not unambiguously intended for such Party, any member of such Party’s
      Group or any of their officers or directors, and to the extent that they do
      not
      relate to the business of the receiving Party or its Group, the receiving Party
      shall promptly deliver such mail, packages or other communications (or, in
      case
      the same relate to both businesses, copies thereof) to the other Party as
      provided for in Section 10.5.  The
      provisions of this Section 2.6(d) are not
      intended to, and shall not, be deemed to constitute an authorization by any
      Party or its Group to permit the other to accept service of process on its
      behalf and no Party is or shall be deemed to be the agent of any other Party
      for
      service of process purposes.

     

    (e)           Each
      Party shall, and shall cause the members of its respective Group to, (i) treat
      for all Income Tax purposes (A) the deferred Assets as assets having been
      Transferred to and owned by the Party or members of its Group entitled to such
      Assets not later than the Effective Time and (B) the deferred Liabilities as
      liabilities having been Assumed and owed by the Person intended to be subject
      to
      such Liabilities not later than the Effective Time and (ii) neither report
      nor
      take any Tax position (on a Tax Return or otherwise) inconsistent with such
      treatment (unless required by a change in applicable Tax Law or good faith
      resolution of a Tax Contest relating to Taxes).

     

    Section
      2.7.                                Conveyancing
      and Assumption Instruments.  In connection with, and in
      furtherance of, the Transfers of Assets and the acceptance and Assumptions
      of
      Liabilities contemplated by this Agreement, to the extent any such Transfer
      or
      Assumption is not reflected in or provided for under an Ancillary Agreement
      listed on Schedule 1.9, the Parties shall execute or cause to be
      executed, by the appropriate entities, Conveyancing and Assumption Instruments
      as and when necessary to evidence the valid and effective Assumption by the
      applicable Party or the applicable member of its Group of its Assumed
      Liabilities and the valid Transfer to the applicable Party or member of such
      Party’s Group of all right, title and interest in and to its accepted Assets, in
      substantially the form contemplated hereby for Transfers and Assumptions to
      be
      effected pursuant to Ontario Laws or the Laws of such other jurisdiction as
      are
      appropriate for a given Transfer, in such other form as the Parties shall
      reasonably agree, including the Transfer of real property with deeds as may
      be
      appropriate, provided that no such action shall be taken if such action could
      adversely affect the Tax Step-Up.  The Transfer of capital stock shall
      be effected by means of executed stock powers and notation on the stock record
      books of the corporation or other legal entities involved, or by such other
      means as may be required in the relevant jurisdiction to Transfer title to
      stock
      and, only to the extent required by applicable Law, by notation on public
      registries.

     

    Section
      2.8.                                Further
      Assurances.

     

    (a)           In
      addition to and without limiting the actions specifically provided for elsewhere
      in this Agreement, including Section 2.6,
      each of the Parties shall cooperate with each

     

    
      
        
        

      

      
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    other
      and
      use (and will cause their respective Subsidiaries and other Group members to
      use) commercially reasonable efforts, on and after the Effective Time, to take,
      or to cause to be taken, all actions, and to do, or to cause to be done, all
      things reasonably necessary on its part under applicable Law or contractual
      obligations to consummate and make effective the transactions contemplated
      by
      this Agreement and the Ancillary Agreements, provided that no such action shall
      be taken or thing done if such action or thing could adversely affect the Tax
      Step-Up.

     

    (b)           Without
      limiting the foregoing, and subject to Section
      2.6, on and after the Effective Time, each Party shall cooperate with
      the other Parties, and without any further consideration, but at the expense
      of
      the requesting Party from and after the Effective Time, to execute and deliver,
      or use commercially reasonable efforts to cause to be executed and delivered,
      all Contracts, indentures and other instruments, including instruments of
      Transfer, and to make all filings with Governmental Entities, and to obtain
      all
      Consents and/or Governmental Approvals, and any required permits or licenses,
      and to take all such other actions as such Party may reasonably be requested
      to
      take by any other Party or member of its Group from time to time, consistent
      with the terms of this Agreement and the Ancillary Agreements, in order to
      effectuate the provisions and purposes of this Agreement and the Ancillary
      Agreements and the Transfers of the applicable Assets and the assignment and
      Assumption of the applicable Liabilities and the other transactions contemplated
      hereby and thereby.  Without limiting the foregoing, each Party will,
      at the reasonable request, cost and expense of any other Party, take such other
      actions as may be reasonably necessary to vest in such other Party or member
      of
      its Group good and marketable title to the Assets allocated to such Party under
      this Agreement or any of the Ancillary Agreements, free and clear of any
      Security Interest, if and to the extent it is practicable to do
      so.  Notwithstanding the provisions of this Section 2.8(b), no action shall be taken or
      thing done if such action or thing could adversely affect the Tax
      Step-Up.

     

    Section
      2.9.                                Novation
      of Liabilities.

     

    (a)           Each
      Party, at the request of another Party, shall use its commercially reasonable
      efforts to obtain, or to cause to be obtained, any Consent, substitution or
      amendment required to novate or assign all obligations under Contracts, licenses
      and other obligations or Liabilities for which a member of such Party’s Group
      and a member of another Party’s Group are jointly or severally liable and that
      do not constitute Liabilities of such requesting Party as provided in this
      Agreement (such requesting Party, the “Non-Liable Party”), or to obtain
      in writing the unconditional release of all parties to such arrangements (other
      than any member of the Group who Assumed or retained such Liability as set
      forth
      in this Agreement), so that, in any such case, the members of the applicable
      Group will be solely responsible for such Liabilities; provided,
however, that no Party shall be obligated to pay any consideration
      therefor to any third party from whom any such Consent, substitution or
      amendment is requested (unless such Party is fully reimbursed by the Non-Liable
      Party).

     

    (b)           If
      the Parties are unable to obtain, or to cause to be obtained, any such required
      Consent, release, substitution or amendment, the Non-Liable Party or a member
      of
      such Non-Liable Party’s Group shall continue to be bound by such Contract,
      license or other obligation that does not constitute a Liability of such
      Non-Liable Party and, unless not permitted

     

    
      
        
        

      

      
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    by
      Law or
      the terms thereof, as agent or subcontractor for such Party, the Party who,
      or
      whose Group member, was intended to Assume or retain such Liability as set
      forth
      in this Agreement (the “Liable Party”) shall, or shall cause a member of
      its Group to, directly pay, perform and discharge fully all the obligations
      or
      other Liabilities of such Non-Liable Party or member of such Non-Liable Party’s
      Group thereunder from and after the Effective Time.  The Liable Party
      shall indemnify (in accordance with the provisions of Article VI) each Non-Liable Party and each
      member of such Non-Liable Party’s Group and hold each of them harmless against
      any Liabilities (other than Liabilities of such Non-Liable Party or such
      Non-Liable Party’s Group) arising in connection therewith; provided, that
      the Liable Party shall have no obligation to indemnify any Non-Liable Party
      or
      any member of such Non-Liable Party’s Group with respect to any matter to the
      extent caused by any knowing violation of Law, fraud or misrepresentation in
      connection therewith in which such Non-Liable Party or any member of such
      Non-Liable Party’s Group has engaged.  The Non-Liable Party shall,
      without further consideration, promptly pay and remit, or cause to be promptly
      paid or remitted, to the Liable Party or to another member of the Liable Party’s
      Group, all money, rights and other consideration received by it or any member
      of
      its Group in respect of such performance by the Liable Party or any member
      of
      such Liable Party’s Group (unless any such consideration is an Asset of such
      Non-Liable Party pursuant to this Agreement).  If and when any such
      Consent, release, substitution or amendment shall be obtained or such agreement,
      lease, license or other rights or obligations shall otherwise become assignable
      or able to be novated, the Non-Liable Party shall promptly Transfer or cause
      to
      be Transferred all rights, obligations and other Liabilities thereunder of
      any
      member of such Non-Liable Party’s Group to the Liable Party or to another member
      of the Liable Party’s Group without payment of any further consideration and the
      Liable Party, or another member of such Liable Party’s Group, without the
      payment of any further consideration, shall Assume such rights and Liabilities,
      provided that no such Transfer shall be made if such Transfer could adversely
      affect the Tax Step-Up.

     

    Section
      2.10.                                Guarantees;
      Letters of Credit.

     

    (a)           As
      soon as reasonably practicable after the Effective Time, each Party shall (with
      the reasonable cooperation of the other applicable Parties) use its commercially
      reasonable efforts (which shall include offering to provide equivalent
      guarantees, indemnities or letters of credit) to have any member of any Group
      other than such Party’s Group removed as guarantor or indemnitor of or obligor
      for (or provide for a replacement letter of credit with respect to existing
      letters of credit) any Corresponding Liability of such Party’s Group, including
      in respect of those guarantees, indemnities and letters of credit set forth
      on
Schedule 2.10(a)(i), to the extent that they relate primarily to
      Corresponding Liabilities of such Party’s Group.

     

    (b)           To
      the extent required to obtain a release from a guaranty or indemnity (a
“Guaranty Release”) of any Party or a member of such Party’s Group, the
      other Parties (and the members of their respective Groups) in respect of which
      such guaranty or indemnity is or relates primarily to a Corresponding Liability
      shall execute a guaranty or indemnity agreement in the form of the existing
      guaranty or indemnity, except to the extent that such existing guaranty or
      indemnity contains representations, covenants or other terms or provisions
      either (A) with which such other Parties, as the case may be, would be
      reasonably unable to comply or (B) which would be reasonably expected to be
      breached.

     

    
      
        
        

      

      
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    (c)           If
      any Party is unable to obtain, or to cause to be obtained, any such required
      removal or replacement as set forth in clauses (a) and (b) of this Section 2.10, (i) the Party which is (or whose
      Group member is) the relevant beneficiary shall indemnify and hold harmless
      the
      guarantor or obligor for any Indemnifiable Loss arising from or relating thereto
      (in accordance with the provisions of Article
      VI) and shall or shall cause one of its Subsidiaries, as agent or
      subcontractor for such guarantor or obligor to pay, perform and discharge fully
      all the obligations or other Liabilities of such guarantor or obligor thereunder
      and (ii) each Party agrees not to renew or extend the term of, increase its
      obligations under, or Transfer to a third party, any loan, guarantee, lease,
      contract or other obligation for which another Party or a member of such other
      Party’s Group is or may be liable unless all obligations of such other Party and
      the other members of such other Party’s Group with respect thereto are thereupon
      terminated by documentation reasonably satisfactory in form and substance to
      such other Party; provided, however, with respect to leases, in
      the event a Guaranty Release is not obtained and such Party wishes to extend
      the
      term of such guaranteed lease, then such Party shall have the option of
      extending the term if it provides such security as is reasonably satisfactory
      to
      the guarantor under such guaranteed lease.

     

    Section
      2.11.                                Tax
      Liabilities .  

     

    (a)           The
      Parties agree to allocate Liabilities related to Taxes in the manner set forth
      in Schedule 2.11.  If there is any inconsistency between the
      provisions of Schedule 2.11 and the provisions of the rest of this
      Agreement or any Ancillary Agreement with respect to matters related to Taxes,
      Schedule 2.11 shall control.

     

    (b)           With
      respect to any Tax Return filed by any member of a Group (the “­Filing
      Group" after the Closing Date that reflects or reports transactions or
      events that give rise to Liabilities for Taxes that the Filing Group intends
      to
      claim are Liabilities for Taxes for which another Group (the “Responsible
      Group”) is responsible hereunder, the position taken in such Tax Return with
      respect to such Liability will be determined in consultation with the
      Responsible Group and the Tax Return shall be presented to such Group for review
      and comment at least 30 days in advance of the date on which it intends to
      file
      the Tax Return or such lesser number of days as is practical in the
      circumstances.  If the Responsible Group objects to the position
      proposed to be taken by the Filing Group, then such parties will negotiate
      in
      good faith to determine the position to be taken; provided, however that if
      the
      Responsible Group provides an opinion of Tax counsel (nationally recognized
      in
      the relevant jurisdiction) to the effect that there is a reasonable basis for
      such position in law or administrative practice, then such position shall be
      taken in the Tax Return provided that such filing position is not prejudicial
      to
      other tax filing positions taken by the Filing Group.  If the Filing
      Group agrees to amend its proposed filing position, the Responsible Group shall
      acknowledge it is responsible for Liabilities for Taxes arising from such
      amended position. Except as provided herein, all other Tax Returns shall be
      prepared solely by the party liable for the filing of such Tax Return by
      applicable law.  Failure to comply with the provisions of this Section
      2.11(b) shall not relieve the Responsible Group for Liability for Taxes for
      which it is responsible.

     

    
      
        
        

      

      
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    (c)           Anything
      in this Agreement to the contrary notwithstanding, where any refund of Taxes
      would be a Corresponding Asset of a Group (the “Claiming Group”), such
      Group shall have the right to initiate any claim for a refund of such
      Taxes.  The Group that would otherwise receive the refund (the
“Other Group”) shall reasonably co-operate in all respects in such
      application including filing amended Tax Returns, provided that such application
      does not prejudice the tax position of the Other Group.  The Claiming
      Group shall reimburse the Other Group for any reasonable costs or expenses
      incurred by the Other Group in providing such co-operation.

     

    (d)           Canco
      and its subsidiaries will make US tax elections, including under Section 338
      and
      7701 of the Internal Revenue Code of 1986, as amended, with respect to the
      acquisition of the Predecessor as directed by Entertainment provided that such
      elections do not have an adverse effect on CW Investments Co. or its
      subsidiaries.

     

    Section
      2.12.                                Disclaimer
      of Representations and Warranties.  EACH OF THE PARTIES (ON BEHALF
      OF ITSELF AND EACH MEMBER OF ITS GROUP) UNDERSTANDS AND AGREES THAT, EXCEPT
      AS
      EXPRESSLY SET FORTH HEREIN, IN ANY ANCILLARY AGREEMENT OR IN ANY CONTINUING
      ARRANGEMENT, NO PARTY TO THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR ANY OTHER
      AGREEMENT OR DOCUMENT CONTEMPLATED BY THIS AGREEMENT, ANY ANCILLARY AGREEMENTS
      OR OTHERWISE, IS REPRESENTING OR WARRANTING IN ANY WAY AS TO THE ASSETS,
      BUSINESSES, INFORMATION OR LIABILITIES CONTRIBUTED, TRANSFERRED OR ASSUMED
      AS
      CONTEMPLATED HEREBY OR THEREBY, AS TO ANY CONSENTS OR GOVERNMENTAL APPROVALS
      REQUIRED IN CONNECTION HEREWITH OR THEREWITH, AS TO THE VALUE OR FREEDOM FROM
      ANY SECURITY INTERESTS OF, OR ANY OTHER MATTER CONCERNING, ANY ASSETS OF SUCH
      PARTY, OR AS TO THE ABSENCE OF ANY DEFENSES OR RIGHT OF SETOFF OR FREEDOM FROM
      COUNTERCLAIM WITH RESPECT TO ANY ACTION OR OTHER ASSET, INCLUDING ACCOUNTS
      RECEIVABLE, OF ANY PARTY, OR AS TO THE LEGAL SUFFICIENCY OF ANY CONTRIBUTION,
      ASSIGNMENT, DOCUMENT, CERTIFICATE OR INSTRUMENT DELIVERED HEREUNDER TO CONVEY
      TITLE TO ANY ASSET OR THING OF VALUE UPON THE EXECUTION, DELIVERY AND FILING
      HEREOF OR THEREOF.  EXCEPT AS MAY EXPRESSLY BE SET FORTH HEREIN OR IN
      ANY ANCILLARY AGREEMENT, ALL SUCH ASSETS ARE BEING TRANSFERRED ON AN “AS IS,”
“WHERE IS” BASIS (AND, IN THE CASE OF ANY REAL PROPERTY, BY MEANS OF A QUITCLAIM
      OR SIMILAR FORM DEED OR CONVEYANCE) AND THE RESPECTIVE TRANSFEREES SHALL BEAR
      THE ECONOMIC AND LEGAL RISKS THAT (I) ANY CONVEYANCE SHALL PROVE TO BE
      INSUFFICIENT TO VEST IN THE TRANSFEREE GOOD TITLE, FREE AND CLEAR OF ANY
      SECURITY INTEREST AND (II) ANY NECESSARY CONSENTS OR GOVERNMENTAL APPROVALS
      ARE
      NOT OBTAINED OR THAT ANY REQUIREMENTS OF LAWS OR JUDGMENTS ARE NOT COMPLIED
      WITH.

     

    
      
        
        

      

      
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    Section
      2.13.                                Effectiveness
      of Transfers.  The Specialty Television Transfer, the Intermediate
      Transfers, the Separation Transfers and the Shelter Transfer shall be deemed
      to
      occur in the order specified in the Steps Memo.

     

    ARTICLE
      III

     

    

     

    CERTAIN
      ACTIONS AT OR PRIOR TO THE TRANSFERS

     

    Section
      3.1.                                Resignations.  After
      the effective time of the Plan of Arrangement, the Parties shall take all
      necessary steps to cause all of the employees of CW Media and any employees
      of
      its Affiliates to resign, effective as of the Closing Date, from all positions
      as officers or directors of any member of each Group in which they serve
      (excluding any Corresponding Employees of such Group) and such employees will
      be
      replaced as of the Closing Date with officers and directors designated by the
      members of such Group.  

     

    Section
      3.2.                                Ancillary
      Agreements.  On or prior to the Effective Time, each of the
      Parties shall enter into, and/or (where applicable) shall cause a member or
      members of their respective Group to enter into, the Ancillary Agreements to
      which each is a party and any other Contracts reasonably necessary or
      appropriate in connection with the transactions contemplated hereby and thereby.
      

     

    ARTICLE
      IV

     

    

     

    CERTAIN
      COVENANTS

     

    Section
      4.1.                                No
      Solicit.  For and during the twenty-four (24) month period
      following the Effective Time, none of the New Entities nor any member of their
      respective Groups (or any director, officer, employee, agent or other
      representative of any such person acting on behalf of such person) will, without
      the prior written consent of the other applicable Party, either directly or
      indirectly, on their own behalf or in the service or on behalf of others,
      solicit, aid, induce or encourage any Restricted Person (as defined below)
      of
      any other Party’s respective Group to leave his or her employment;
provided, however, that nothing in this Section 4.1 shall be deemed to prohibit
      any
      general solicitation for employment through advertisements and search firms
      not
      specifically directed at employees of such other applicable Party;
provided, that the applicable Party shall not encourage or advise such
      firm to approach any such employee.  “Restricted Person” means
      any person employed by any Party or any of its Subsidiaries (or any other member
      of its Group) as of the Effective Time.

     

    
      
        
        

      

      
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    Section
      4.2.                                Corporate
      Names and Other Parties’ Trademarks.  Except as otherwise
      specifically provided for in Section 4.2(b)
      or Section 4.2(c) or as otherwise permitted
      under any Ancillary Agreement:

     

    (a)           Subject
      to Section 4.2(b), as soon as a Party ceases
      to be an Affiliate of any other Party, such Party and the members of its Group
      shall cease to (i) make any use of any Trademarks that consist of or include
      (A)
      the Trademarks of such other Party or its Group or (B)

     

    any
      Trademarks related primarily thereto including any Trademarks confusingly
      similar thereto or dilutive thereof (with respect to each Party, such Trademarks
      of the other Party and members of the other Party’s Group, the “Other Party
      Marks”), and (ii) hold themselves out as having any affiliation with any
      such other Party or members of its Group (except as permitted pursuant to the
      terms of any Continuing Arrangement).

     

    (b)           As
      soon as reasonably practicable after a Party ceases to be an Affiliate of any
      other Party, but in any event within six (6) months thereafter, such Party
      and
      the members of its Group shall cease to make any use of any corporate names
      or
      trade names that consist of or include the Other Party Marks.  Any use
      by any of the Parties or any of their Subsidiaries or Affiliates of any of
      the
      Other Party Marks as permitted in this Section 4.2
      is subject to their compliance with the quality control requirements and
      guidelines in effect for the Other Party Marks as of the Effective
      Time.

     

    (c)           Notwithstanding
      the foregoing requirements of Section
      4.2(b), if any Party or any member of a Party’s Group exercised good
      faith efforts to comply with Section 4.2(b)
      but is unable, due to regulatory or other circumstance beyond its control,
      to
      effect a corporate name change or to cancel a trade name in compliance with
      applicable Law such that an Other Party Mark remains in such Party’s or its
      Group member’s corporate name or trade name, then the relevant Party or its
      Group member will not be deemed to be in breach hereof if it continues to
      exercise good faith efforts to effectuate such name change or name cancellation
      and does effectuate such name change or name cancellation within nine (9) months
      after ceasing to be an Affiliate of the owner of such Other Party Mark, and,
      in
      such circumstances, such Party or Group member may continue to include in its
      assets and other materials references to the Other Party Mark that is in such
      Party’s or Group member’s corporate name or trade name which includes references
      to “Alliance Atlantis” as applicable, but only to the extent necessary to
      identify such Party or Group member and only until such Party’s or Group
      member’s corporate name or trade name can be changed to remove and eliminate
      such references or cancelled as the case may be.

     

    Section
      4.3.                                Auditors
      and Audits; Annual and Quarterly Financial Statements and
      Accounting.  Each Party agrees that for one year following the
      Effective Time (and with the consent of the other applicable Party, which
      consent shall not be unreasonably withheld, conditioned or delayed, during
      any
      period of time after such one year period reasonably requested by such
      requesting Party so long as there is a reasonable business purpose for such
      request) and in any event solely with respect to the preparation and audit
      of
      each of the Party’s financial statements for the year ended December 31, 2007,
      the printing,

     

    
      
        
        

      

      
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    filing
      and public dissemination of such financial statements, the audit of each Party’s
      internal control over financial reporting and management’s assessment thereof
      and management’s assessment of each Party’s disclosure controls and procedures,
      if required, in each case made as of December 31, 2007; provided, that in
      the event that any Party changes its auditors within two (2) years of the
      Effective Time, then such Party may request reasonable access on the terms
      set
      forth in this Section 4.4 for a period of up
      to ninety (90) days from such change; provided, further, that,
      notwithstanding the foregoing, access of the type described in this Section 4.4 shall be afforded by and to each of
      the Parties hereto (from time to time following the Effective Time), as
      applicable, to the extent reasonably necessary to respond (and for the limited
      purpose of responding) to any written request or official comment from a
      Governmental Entity:

     

    (a)           Annual
      Financial Statements.  Each Party shall provide or provide access
      to the other Party on a timely basis all information reasonably required to
      meet
      its schedule for the preparation, printing, filing, and public dissemination
      of
      its annual financial statements and for the assessment of the disclosure
      controls and procedures, internal control over financial reporting and auditing
      standards as such other Party reasonably requires to comply with applicable
      Canadian and United States securities disclosure laws (the “2007 Internal
      Control Audit and Management Assessments”).  Without limiting the
      generality of the foregoing, each Party will provide all required financial
      and
      other Information with respect to itself and its Subsidiaries to its auditors
      in
      a sufficient and reasonable time and in sufficient detail to permit its auditors
      to take all steps and perform all reviews necessary to provide sufficient
      assistance to each other Party’s auditors with respect to information to be
      included or contained in such other Party’s annual financial statements and to
      permit such other Party’s auditors and management to complete the 2007 Internal
      Control Audit and Management Assessments, if required.

     

    (b)           Access
      to Personnel and Records.  Each Party shall authorize its
      respective auditors to make reasonably available to each other Party’s auditors
      both the personnel who performed or are performing the annual audits of such
      audited Party and work papers related to the annual audits of such audited
      Party, in all cases within a reasonable time prior to such audited Party’s
      auditors’ opinion date, so that the other Parties’ auditors are able to perform
      the procedures that they reasonably consider necessary to take responsibility
      for the work of such audited Party’s auditors as it relates to their auditors’
report on such other Party’s financial statements, all within sufficient time to
      enable such other Party to meet its timetable for the printing, filing and
      public dissemination of its annual financial statements.  Each such
      audited Party shall make reasonably available to such other Parties’ auditors
      and management its personnel and Records in a reasonable time prior to such
      other Parties’ auditors’ opinion date and other Parties’ management’s assessment
      date so that such other Parties’ auditors and other Parties’ management are able
      to perform the procedures they reasonably require to conduct the 2007 Internal
      Control Audit and Management Assessments.

     

    Section
      4.4.                                Administration
      of Separation Expenses.  Each New Entity shall be jointly
      responsible for administering and managing matters relating to the payment
      of
      the Separation Expenses to the extent that such New Entity or any member of
      its
      Group is responsible under this Agreement for the payment or satisfaction of
      such Separation Expenses, and any decisions with respect to such administration
      or management shall require the consent of each such New Entity to the extent
      that they affect such New Entity or any member of its Group.

     

    
      
        
        

      

      
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    Section
      4.5.                                Cooperation.  From
      the Effective Time until 180 days thereafter, the Parties shall, and shall
      cause
      each of their respective Affiliates and employees to (i) provide reasonable
      cooperation and assistance to each other Party in connection with the completion
      of the Plan of Separation, (ii) provide knowledge transfer regarding its
      applicable Business or the historical business of the Predecessor and its
      Subsidiaries and (iii) assist each Party in the orderly and efficient transition
      in becoming an independent company, in each case at no additional cost to the
      Party requesting such assistance other than for the actual out-of-pocket costs
      (which shall not include the costs of salaries and benefits of employees of
      the
      cooperating and assisting Party or any pro rata portion of overhead or other
      costs of employing such employees which would have been incurred by such
      employees’ employer regardless of the employees’ service with respect to the
      foregoing) incurred by any cooperating and assisting Party, if
      applicable.  The cooperation and assistance provided for in this Section 4.5 shall not be required to the extent
      that such cooperation and assistance would result in an undue burden on the
      cooperating and assisting Party or would unreasonably interfere with any of
      its
      employees’ normal functions and duties.  In furtherance of, and
      without limiting, the foregoing, each Party shall make reasonably available
      those employees with particular knowledge of any function or service of which
      another Party was not allocated the employees involved in such function or
      service in connection with the Plan of Separation (including, employee benefits
      functions, risk management, etc.).

     

    Section
      4.6.                                Tax
      Step-Up.  After the Effective Time, each Party covenants and
      agrees that it and each of its Affiliates shall not take any action or enter
      into any transaction if the taking of such action or the entering into of such
      transaction would preclude the application of the Tax Step-Up to any
      non-depreciable capital property of the Predecessor, Alliance Atlantis
      Broadcasting Inc. or Alliance Atlantis Productions Ltd.  

     

    ARTICLE
      V

     

    

     

    EMPLOYEE
      MATTERS

     

    Section
      5.1.                                General.

     

    (a)           Employment
      Liabilities.  Without limiting the generality of any other
      provisions of this Agreement, as of the Effective Time, except as expressly
      provided in this Agreement and the Transition Services Agreement, each New
      Entity shall Assume or retain and hereby agrees to pay, perform, fulfill and
      discharge, in due course in full all Liabilities with respect to the employment
      or termination of employment of all of its Corresponding Employees and their
      respective dependents and beneficiaries.

     

    (b)           AA
      Plans.  Except as otherwise provided in this Article V, Movie, International, Entertainment,
      Production, Propinquity and ShelterCo shall not Assume any obligations under
      or
      Liabilities with respect to, and they shall not receive any right or interest
      in
      the Assets of, any of the Plans which are sponsored or maintained by CW Media
      and STV or

     

    
      
        
        

      

      
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    their
      Affiliates (excluding Movie, Entertainment, International, Production,
      Propinquity and ShelterCo and their respective Subsidiaries), including the
      Plans set forth on Schedule 5.1(b) (“AA Plans”) other than the
      Movie and Entertainment Plans.  Each of CW Media and STV shall assume
      or retain, or cause their respective Subsidiaries to assume or retain, as the
      case may be, sponsorship of, and all obligations with respect to, each AA
      Plan.  Notwithstanding the foregoing provisions of this Section 5.1(b), (i) if there are any
      Liabilities relating to Entertainment Employees (or their eligible spouses,
      beneficiaries and dependants) in respect of their participation in or
      entitlement under an AA Plan which are in addition to or in excess of the Assets
      held by CW Media or STV in respect of such Persons under an AA Plan,
      Entertainment shall Assume all such Liabilities; (ii) if there are any
      Liabilities relating to International Employees (or their eligible spouses,
      beneficiaries and dependants) in respect of their participation in or
      entitlement under an AA Plan which are in addition to or in excess of the Assets
      held by CW Media or STV in respect of such Persons under an AA Plan,
      International shall Assume all such Liabilities; (iii) if there are any
      Liabilities relating to Movie Employees (or their eligible spouses,
      beneficiaries and dependants) in respect of their participation in or
      entitlement under an AA Plan which are in addition to or in excess of the Assets
      held by CW Media or STV in respect of such Persons under an AA Plan, Movie
      shall
      Assume all such Liabilities; (iv) if there are any Liabilities relating to
      Production Employees (or their eligible spouses, beneficiaries and dependants)
      in respect of their participation in or entitlement under an AA Plan which
      are
      in addition to or in excess of the Assets held by CW Media or STV in respect
      of
      such Persons under an AA Plan, Production shall Assume all such Liabilities;
      and
      (v) if there are any Liabilities relating to Propinquity Employees (or their
      eligible spouses, beneficiaries and dependants) in respect of their
      participation in or entitlement under an AA Plan which are in addition to or
      in
      excess of the Assets held by CW Media or STV in respect of such Persons under
      an
      AA Plan, Propinquity shall Assume all such Liabilities.

     

    (c)           Movie
      and Entertainment Plans.  CW Media and the STV Group shall not
      Assume or retain any obligations under or Liabilities with respect to, and
      they
      shall not receive any right or interest in the Assets of, any of the Plans
      which
      are sponsored or maintained primarily for Movie Employees, Production Employees,
      Propinquity Employees, International Employees or Entertainment Employees
      (“Movie and Entertainment Plans”, including the Plans set forth on
Schedule 5.1(c)).  Each of Movie, Entertainment, Production,
      Propinquity and International shall Assume or retain, or cause their respective
      Subsidiaries to Assume or retain, as the case may be, sponsorship of, and all
      obligations with respect to, each Movie and Entertainment
      Plan.  Notwithstanding the foregoing provisions of this Section 5.1(c), if there are any Liabilities
      relating to STV Employees (or their eligible spouses, beneficiaries and
      dependants) in respect of their participation in or entitlement under a Movie
      and Entertainment Plan which are in addition to or in excess of the Assets
      held
      by Movie, Entertainment, International, Production and Propinquity in respect
      of
      such Persons under a Movie and Entertainment Plan, STV shall Assume or retain
      such Liabilities.

     

    (d)           Participation
      in AA Plans.  All Movie Employees, Entertainment Employees,
      Production Employees, Propinquity Employees and International Employees (and
      their eligible spouses, beneficiaries and dependents) will cease, effective
      as
      of the Effective Time, to actively participate in and accrue benefits under
      each
      of the AA Plans.  CW Media and STV and their respective Subsidiaries
      shall take all necessary actions to effect such cessation of

     

    
      
        
        

      

      
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    active
      participation of Movie Employees, Entertainment Employees, Production Employees,
      Propinquity Employees and International Employees (and their eligible spouses,
      beneficiaries and dependents) under the AA Plans.

     

    (e)           Participation
      in Movie and Entertainment Plans.  All STV Employees (and their
      eligible spouses, beneficiaries and dependents) will cease, effective as of
      the
      Effective Time, to actively participate in and accrue benefits under each of
      the
      Movie and Entertainment Plans.  Entertainment, International, Movie,
      Production and Propinquity and their respective Subsidiaries shall take all
      necessary actions to effect such cessation of active participation of STV
      Employees (and their eligible spouses, beneficiaries and dependents) under
      the
      Movie and Entertainment Plans.

     

    Section
      5.2.                                Savings
      Plans.

     

    (a)           DPSPs.  Effective
      as at the Effective Time, each New Entity shall establish or cause to be
      established a DPSP for its Corresponding Employees who participated in the
      AA
      DPSP prior to the Effective Time (each, a “Corresponding DPSP”) and
      Corresponding Employees shall cease to actively participate in and accrue
      benefits under the AA DPSP.  As soon as practicable after the
      Effective Time, CW Media shall cause the individual account balances of
      Corresponding Employees held under the AA DPSP to be transferred from the AA
      DPSP to the applicable Corresponding DPSP.  Each New Entity shall
      provide the same investment options under the Corresponding DPSP as the options
      offered under the AA DPSP immediately prior to the Effective
      Time.  The individual account balances of Corresponding Employees held
      under the AA DPSP shall be transferred in-kind from the AA DPSP to the
      Corresponding DPSP, unless otherwise agreed by CW Media and the Corresponding
      Business.  Upon such transfer, the relevant New Entity, the relevant
      Corresponding Business and the relevant Corresponding DPSP shall Assume all
      Liabilities with respect to all amounts transferred from the AA DPSP to such
      Corresponding DPSP in respect of the relevant Corresponding Employees and each
      of CW Media, its Affiliates (for the avoidance of doubt, other than such
      Corresponding Business) and the AA DPSP shall be relieved of all such
      Liabilities.

     

    (b)           Group
      RRSPs.  Effective as at the Effective Time, each New Entity shall
      assume or cause to be assumed sponsorship of the portion of the AA Group RRSP
      that relates to its Corresponding Employees (each such portion
      a  “Corresponding Group RRSP”; the Corresponding DPSP and
      Corresponding Group RRSP established by each New Entity shall be referred to
      as
      the “Corresponding Savings Plan” in respect of such New Entity and its
      Group).  More specifically, at the Effective Time CW Media shall
      resign as agent of the Corresponding Employees of each of the New Entities
      and
      its Group under the AA Group RRSP and each New Entity and its Corresponding
      Business shall takes all steps necessary to be appointed as the agent of its
      Corresponding Employees under its Corresponding Group RRSP as at the Effective
      Time.  Upon such assumption of sponsorship, each New Entity and its
      Corresponding Business and its Corresponding Group RRSP shall Assume all
      Liabilities with respect to all amounts transferred from the AA Group RRSP
      to
      such Corresponding Group RRSP in respect of the Corresponding Employees of
      such
      New Entity and its Group and each of CW Media, its Affiliates (for the avoidance
      of doubt, other than such Corresponding Business) and the AA Group RRSP shall
      be
      relieved of all such Liabilities.

     

    
      
        
        

      

      
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    (c)           Records.  CW
      Media shall provide or cause to be provided to each Corresponding Business
      copies of personnel and other records of CW Media and its Subsidiaries with
      respect to its Corresponding Employees (including records of any agent or
      representative), pertaining to the AA Savings Plan as the Corresponding Business
      may reasonably request in order to administer its Corresponding Savings
      Plan.

     

    Section
      5.3.                                Health
      and Welfare Plans.

     

    (a)           Corresponding
      Benefit Plans.  Effective as of the Effective Time, each New
      Entity shall establish or cause to be established or otherwise provide or cause
      to be provided non-pension benefit plans (the “Corresponding Benefit
      Plans”) to provide non-pension benefits on and after the Effective Time for
      its Corresponding Employees (and their eligible spouses, beneficiaries and
      dependants) who participated in the AA Benefits Plans prior to the Effective
      Time.  Each New Entity shall waive or cause to be waived any
      pre-existing medical condition or other restriction that would prevent immediate
      and full participation of any Corresponding Employee in its Corresponding
      Benefit Plans.  For the avoidance of doubt, Corresponding Employees
      who are on short-term disability or long-term disability as at the Effective
      Time shall be enrolled in and receive benefits under the Corresponding Benefit
      Plans for the Group to which they are Corresponding Employees, on and after
      the
      Effective Time.

     

    (b)           Claims.  Claims
      incurred by the Corresponding Employees (and their eligible spouses,
      beneficiaries and dependants) prior to the Effective Time shall be payable
      under
      the terms of the AA Benefit Plans, and claims incurred by the Corresponding
      Employees (and their eligible spouses, beneficiaries and dependants) on and
      after the Effective Time shall be payable under the terms of the Corresponding
      Benefit Plans established or provided in respect of such Corresponding
      Employees.  For purposes of the foregoing in relation to claims under
      the AA Benefit Plans or any Corresponding Benefit Plans, a claim shall be deemed
      to have been incurred on the date on which the event giving rise to such claim
      occurred and, in particular: (i) with respect to a death or dismemberment claim,
      shall be deemed to be the date of the death or dismemberment; (ii) with respect
      to an extended health care claim including dental and medical treatments, shall
      be deemed to be the date of the treatment; and (iii) with respect to a
      prescription drug or vision care claim, shall be deemed to be the date that
      the
      prescription was filled.

     

    (c)           Adjustment.  If
      it is determined following the Effective Time that there are any surpluses,
      deficits, experiences gains or experience losses in respect of the AA Benefit
      Plans as at the Effective Time, any such surpluses, deficits, experiences gains
      or experience losses, as applicable, shall be shared by the New Entities
      proportionately on a per employee basis.

     

    Section
      5.4.                                Continuation
      of Employment.  To the extent that a New Entity and the members of
      its Group are not already employing any of their Corresponding Employees, such
      New Entity shall continue, or shall cause the members of its Corresponding
      Group
      to continue, the employment of any such Corresponding Employees on terms and
      conditions which are substantially comparable in the aggregate to those
      currently available to such Corresponding Employees.

     

    
      
        
        

      

      
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    Section
      5.5.                                Individual
      Employee Agreements.  Each New Entity and its Corresponding Group
      shall Assume or retain exclusive responsibility for all individual employment,
      retention, termination, severance and other similar agreements (collectively,
      “Employee Agreements”) in respect of any of its Corresponding
      Employees.  As at the Effective Time, each New Entity shall Assume all
      Employee Agreements in respect of its Corresponding Employees.  Each
      of CW Media and the New Entities will cooperate to take all reasonable steps
      and
      fulfill all of their respective obligations under applicable Law, including
      obtaining any prior approvals or consents, or engaging in any prior discussions
      or consultations, on a timely basis, in connection with the Transfer and
      Assumption of all Liabilities relating to such Employee Agreements.

     

    Section
      5.6.                                Post-Effective
      Time Bonus Awards.  Each New Entity shall Assume or retain or
      cause to be Assumed or retained all Liabilities for all bonus awards that
      are

     

    payable
      to its Corresponding Employees for the performance periods that end at and
      after
      the Effective Time.  

     

    Section
      5.7.                                Severance
      Benefits.  Each New Entity shall Assume or retain or cause to be
      Assumed or retained all Liabilities in respect of the termination or alleged
      termination of any of its Corresponding  Employees (excluding any
      employees listed on Schedule 1.1(29)
      and Schedule 1.1(55)) that
      occurs prior to or as a result of or in connection with or following the
      consummation of the transactions contemplated by this Agreement, including
      any
      amounts required to be paid (including any payroll or other taxes), and the
      costs of providing benefits and bonuses, including bonuses accrued up to the
      date of termination, under any applicable severance, separation, redundancy,
      termination or similar plan, program, practice, contract, agreement, law or
      regulation (such benefits to include any medical or other welfare benefits,
      outplacement benefits or any other benefits under a Plan, accrued vacation
      and
      taxes).

     

    Section
      5.8.                                Vacation.  Each
      New Entity shall Assume or retain or cause to be Assumed or retained all
      Liabilities with respect to the accrued, unused vacation of any of its
      Corresponding Employees.  

     

    Section
      5.9.                                COBRA/HIPPA.  Effective
      at the Effective Time, the Movie Group and the Entertainment Group shall be
      responsible for administering compliance with the health care continuation
      requirements of COBRA, the certificate of creditable coverage requirements
      of
      HIPAA, and the corresponding provisions of the Movie and Entertainment Plans
      with respect to Movie Employees and Entertainment Employees and their covered
      dependents who incur a COBRA qualifying event or loss of coverage under the
      Movie and Entertainment Plans at any time.  

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    

     

    INDEMNIFICATION

     

    Section
      6.1.                                Release
      of Pre-Transfer Claims.

     

    (a)           Except
      (i) as provided in Section 6.1(b), (ii) as
      may be otherwise expressly provided in this Agreement, any Ancillary Agreement
      or any Continuing Arrangements and (iii) for any matter for which any Party
      is
      entitled to indemnification or contribution pursuant to this Article VI, each Party, for itself and each
      member of its respective Group, their respective Affiliates and all Persons
      who
      at any time prior to the Effective Time were directors, officers, agents or
      employees of any member of the their Group (in their respective capacities
      as
      such), in each case, together with their respective heirs, executors,
      administrators, successors and assigns, do hereby remise, release and forever
      discharge the other Parties and the other members of such other Parties’ Groups,
      their respective Affiliates and all Persons who at any time prior to the
      Effective Time were shareholders, directors, officers, agents or employees
      of
      any member of such other Parties (in their respective capacities as such),
      in
      each case, together with their respective heirs, executors, administrators,
      successors and assigns, from any and all Liabilities whatsoever, whether at
      Law
      or in equity (including any right of contribution), whether arising under any
      Contract, by operation of Law or otherwise, existing or arising from any acts
      or
      events occurring or failing to occur or alleged to have occurred or to have
      failed to occur or any conditions existing or alleged to have existed on or
      before the Effective Time, other than in connection with the Plan of Separation
      and any of the other transactions contemplated hereunder and under the Ancillary
      Agreements.

     

    (b)           For
      the avoidance of doubt, nothing contained in Section
      6.1(a) shall impair or otherwise affect any right of any Party, and as
      applicable, a member of the Party’s Group to enforce this Agreement, any
      Ancillary Agreement, any Continuing Arrangements or any agreements,
      arrangements, commitments or understandings contemplated in this Agreement,
      any
      Ancillary Agreement or any Continuing Arrangements to continue in effect after
      the Effective Time.  In addition, nothing contained in Section 6.1(a)shall release any person
      from:

     

    (i)           any
      Liability Assumed, Transferred or allocated to a Party or a member of such
      Party’s Group pursuant to or contemplated by, or any other Liability of any
      member of such Group under, this Agreement or any Ancillary Agreement including,
      with respect to any New Entity, a Corresponding Liability of such New
      Entity;

     

    (ii)           any
      Liability for the sale, lease, construction or receipt of goods, property or
      services purchased, obtained or used in the ordinary course of business by
      a
      member of one Group from a member of any other Group prior to the Effective
      Time;

     

    
      
        
        

      

      
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    (iii)           any
      Liability for unpaid amounts for products or services or refunds owing on
      products or services due on a value-received basis for work done by a member
      of
      one Group at the request or on behalf of a member of another Group;

     

    (iv)           any
      Liability provided in or resulting from any other Contract or understanding
      that
      is entered into after the Effective Time between any Party (and/or a member
      of
      such Party’s Group), on the one hand, and any other Party or Parties (and/or a
      member of such Party’s Group or Parties’ Groups), on the other
      hand;

     

    (v)           any
      Liability with respect to any Continuing Arrangements; or

     

    (vi)           any
      Liability that the Parties may have with respect to indemnification or
      contribution pursuant to this Agreement or otherwise for claims brought against
      the Parties by third Persons, which Liability shall be governed by the
      provisions of this Article VI and, if
      applicable, the appropriate provisions of the Ancillary Agreements.

     

    In
      addition, nothing contained in Section
      6.1(a) shall release CW Media from indemnifying any director, officer or
      employee of any New Entity who was a director, officer or employee of CW Media
      or any of its Affiliates on or prior to the Effective Time or the Closing Date,
      as the case may be, to the extent such director, officer or employee is or
      becomes a named defendant in any Action with respect to which he or she was
      entitled to such indemnification pursuant to then existing
      obligations.

     

    (c)           Each
      Party shall not, and shall not permit any member of its Group to, make, any
      claim or demand, or commence any Action asserting any claim or demand, including
      any claim of contribution or any indemnification, against any other Party or
      any
      member of any other Party’s Group, or any other Person released pursuant to Section 6.1(a), with respect to any Liabilities
      released pursuant to Section
      6.1(a).

     

    It
      is the
      intent of each Party, by virtue of the provisions of this Section 6.1, to provide for a full and complete
      release and discharge of all Liabilities existing or arising from all acts
      and
      events occurring or failing to occur or alleged to have occurred or to have
      failed to occur and all conditions existing or alleged to have existed on or
      before the Effective Time, whether known or unknown, between or among any Party
      (and/or a member of such Party’s Group), on the one hand, and any other Party or
      Parties (and/or a member of such Party’s Group or Parties’ Groups), on the other
      hand (including any contractual agreements or arrangements existing or alleged
      to exist between or among any such members on or before the Effective Time),
      except as specifically set forth in Section
      6.1(a) and Section
      6.1(b).  At any time, at the reasonable request of any other
      Party, each Party shall cause each member of its respective Group and, to the
      extent practicable, each other Person on whose behalf it released Liabilities
      pursuant to this Section 6.1 to execute and
      deliver releases reflecting the provisions hereof.

     

    
      
        
        

      

      
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    Section
      6.2.                                Indemnification.  Except
      as otherwise specifically set forth in any provision of this Agreement, each
      Party shall and shall cause the other members of its Group to indemnify, defend
      and hold harmless the Corresponding Indemnitees of other Groups from and against
      any and all Indemnifiable Losses of such Corresponding Indemnitees arising
      out
      of, by reason of or otherwise in connection with (a) the Corresponding
      Liabilities of such Party and of any member of its Group and (b) any breach
      by
      such Party or any member of its Group of any provision of this Agreement or
      any
      Ancillary Agreement unless such Ancillary Agreement expressly provides for
      separate and exclusive indemnification therein, in which case any such
      indemnification claims shall be made thereunder.  Notwithstanding
      anything to the contrary herein, (a) each member of each of the Movie Group
      and
      the Production Group shall be jointly and severally responsible for the
      indemnification obligations of each member of each such Group under this Section 6.2 and (b) each member of each
      of the Entertainment Group, the Propinquity Group and the International Group
      shall be jointly and severally responsible for the indemnification obligations
      of each member of each such Group under this Section
      6.2.

     

    Section
      6.3.                                Procedures
      for Indemnification.

     

    (a)           An
      Indemnitee shall give the Indemnifying Party notice of any matter that an
      Indemnitee has determined has given or is reasonably likely to give rise to
      a
      right of indemnification under this Agreement (other than a Third-Party Claim
      which shall be governed by Section 6.3(b)),
      within thirty (30) days of such determination, stating the amount of the
      Indemnifiable Loss claimed, if known, and method of computation thereof, and
      containing a reference to the provisions of this Agreement in respect of which
      such right of indemnification is claimed by such Indemnitee or arises;
provided, however, that the failure to provide such notice shall
      not release the Indemnifying Party from any of its obligations except and solely
      to the extent the Indemnifying Party shall have been actually prejudiced as
      a
      result of such failure.

     

    (b)           If
      a claim or demand is made against an Indemnitee by any Person who is not a
      party
      to this Agreement or an Affiliate of a party to this Agreement or an Indemnitee
      is the subject of an audit or other review by a Governmental Entity related
      to
      its Taxes under which it is reasonably likely that the Governmental Entity
      will
      take a position which would give rise to a Liability for Taxes (a
“Third-Party Claim”) as to which such Indemnitee is or may be entitled to
      indemnification pursuant to this Agreement, such Indemnitee shall notify the
      Party which is or may be required pursuant to this Article VI or pursuant to any Ancillary
      Agreement to make such indemnification (the “Indemnifying Party”) in
      writing, and in reasonable detail, of the Third-Party Claim promptly (and in
      any
      event within thirty (30) days) after receipt by such Indemnitee of written
      notice of the Third-Party Claim; provided, however, that the
      failure to provide notice of any such Third-Party Claim pursuant to this
      sentence shall not release the Indemnifying Party from any of its obligations
      except and solely to the extent the Indemnifying Party shall have been actually
      prejudiced as a result of such failure.  Thereafter, the Indemnitee
      shall deliver to the Indemnifying Party, promptly (and in any event within
      five
      (5) Business Days) after the Indemnitee’s receipt thereof, copies of all notices
      and documents (including court papers) received by the Indemnitee relating
      to
      the Third-Party Claim.

     

    
      
        
        

      

      
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    (c)           An
      Indemnifying Party shall be entitled (but shall not be required) to assume
      and
      control the defense of any Third-Party Claim, at such Indemnifying Party’s own
      cost and expense and by such Indemnifying Party’s own counsel, if it gives
      notice of its intention to do so to the applicable Indemnitees within thirty
      (30) days of the receipt of such notice from such Indemnitees.  After
      notice from an Indemnifying Party to an Indemnitee of its election to assume
      the
      defense of a Third-Party Claim, such Indemnitee shall have the right to employ
      separate counsel and to participate in the defense, compromise, or settlement
      thereof, at its own expense and, in any event, shall cooperate with the
      Indemnifying Party in such defense and make available to the Indemnifying Party,
      at the Indemnifying Party’s expense, all witnesses, pertinent Information,
      materials and information in such Indemnitee’s possession or under such
      Indemnitee’s control relating thereto as are reasonably required by the
      Indemnifying Party; provided, however, that in the event of an
      actual or potential conflict of interest between the Indemnifying Party and
      the
      applicable Indemnitee(s), if the Indemnifying Party has elected to assume the
      defense of the Third-Party Claim, such Indemnitee(s) shall be entitled to
      retain, at the Indemnifying Party’s reasonable cost and expense, separate
      counsel as required by the applicable rules of professional conduct with respect
      to such matter; provided, further, that if the Indemnifying Party
      has elected to assume the defense of the Third-Party Claim but has specified,
      and continues to assert, any reservations or exceptions in such notice, then,
      in
      any such case, the reasonable fees and expenses of one separate counsel for
      all
      Indemnitees shall be borne by the Indemnifying Party.

     

    (d)           If
      an Indemnifying Party elects not to assume responsibility for defending a
      Third-Party Claim, or fails to notify an Indemnitee of its election as provided
      in Section 6.3(c), such Indemnitee may
      defend such Third-Party Claim at the reasonable cost and expense of the
      Indemnifying Party.  If the Indemnitee is conducting the defense
      against any such Third-Party Claim, the Indemnifying Party shall cooperate
      with
      the Indemnitee in such defense and make available to the Indemnitee, at the
      Indemnifying Party’s expense, all witnesses, pertinent Information, material and
      information in such Indemnifying Party’s possession or under such Indemnifying
      Party’s control relating thereto as are reasonably required by the
      Indemnitee.

     

    (e)           Subject
      to Section 6.3(j), unless the Indemnifying
      Party has failed to assume the defense of the Third-Party Claim in accordance
      with the terms of this Agreement, no Indemnitee may settle or compromise any
      Third-Party Claim without the consent of the Indemnifying Party, which consent
      shall not be unreasonably withheld, conditioned or delayed.

     

    (f)           In
      the case of a Third-Party Claim, no Indemnifying Party shall consent to entry
      of
      any judgment or enter into any settlement of the Third-Party Claim without
      the
      consent of the Indemnitee if the effect thereof is to permit any injunction,
      declaratory judgment, other order or other non-monetary relief to be entered,
      directly or indirectly, against any Indemnitee or if such judgment or settlement
      does not absolutely, forever and unconditionally release the Indemnitee from
      any
      further claims arising out of the allegations underlying the Third-Party
      Claim.

     

    (g)           In
      the case of any claim or demand made by or Action brought or initiated by a
      Party or a member of its Group that is related primarily to or arises out of
      any
      Business other than the Corresponding Business of such Party, such Party shall
      promptly notify the

     

    
      
        
        

      

      
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    Corresponding
      Group of such Business of such claim, demand or Action and such notified party
      shall be entitled (but shall not be required) to assume and control the
      prosecution of such claim, demand or Action, at such party’s own cost and
      expense and by such party’s own counsel, if it gives notice of its intention to
      do so to the notifying party by the later of thirty (30) days of receiving
      notice of such claim, demand or Action and thirty (30) days from the Closing
      Date.  If such notified party elects not to assume responsibility for
      prosecuting such a claim, demand or Action, such notifying party shall prosecute
      such claim, demand or Action at the cost and expense of such notified party
      (such costs and expenses to be paid with thirty (30) days of the presentation
      of
      an invoice therefor).

     

    (h)           Absent
      fraud or willful misconduct by an Indemnifying Party and except as otherwise
      expressly agreed to in any other agreement among the Parties or any of their
      Affiliates, the indemnification provisions of this Article VI shall be the sole and exclusive
      remedy of an Indemnitee for any monetary or compensatory damages or losses
      resulting from any breach of this Agreement and each Indemnitee expressly waives
      and relinquishes any and all rights, claims or remedies such Person may have
      with respect to the foregoing other than under this Article VI against any Indemnifying
      Party.

     

    (i)           In
      the case of a Third Party Claim made in connection with a Tax Contest involving
      an Indemnitee such that the Indemnitee is required by Law to make a payment
      to
      any Person (a “Third Party” for the purposes of this paragraph) with respect to
      such Third Party Claim before the completion of settlement negotiations or
      related legal proceedings or in connection with an objection to any reassessment
      of Taxes, the Indemnitee may make such payment and the Indemnifying Party shall,
      forthwith after demand by the Indemnitee, reimburse the Indemnitee for any
      such
      payment.  If the amount of any Liability under the Third Party Claim
      in respect of which such a payment was made, as finally determined, is less
      than
      the amount that was paid by the Indemnifying Party to the Indemnitee, the
      Indemnitee shall, forthwith after receipt of the difference from the Third
      Party, pay such difference to the Indemnifying Party, together with, for greater
      certainty, any refund interest received by the Indemnitee from the Third Party,
      less any Taxes payable in respect of such refund interest, including any
      withholding taxes.

     

    (j)           If
      an Indemnifying Party has elected to assume responsibility for defending a
      Third-Party Claim made in connection with a Tax Contest involving an Indemnitee
      and such Indemnitee subsequently determines that it would be in the best
      interests of such Indemnitee to settle such Tax Contest in whole or in part,
      such Tax Contest may be so settled, in whole or in part, without the consent
      of
      the Indemnifying Party, provided that such Indemnitee provides the Indemnifying
      Party with a release of the Indemnifying Party’s obligations with respect to
      such Third Party Claim to the extent of such settlement.

     

    Section
      6.4.                                Cooperation
      in Defense and Settlement.

     

    (a)           With
      respect to any Third-Party Claim that implicates two or more Parties in a
      material fashion due to the allocation of Liabilities, responsibilities for
      management of defense and related indemnities pursuant to this Agreement or
      any
      of the Ancillary Agreements, the applicable Parties agree to use reasonable
      best
      efforts to cooperate fully and maintain a joint

     

    
      
        
        

      

      
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    defense
      (in a manner that will preserve for both Parties the attorney-client privilege,
      joint defense or other privilege with respect thereto).  The Party
      that is not responsible for managing the defense of such Third-Party Claims
      shall, upon reasonable request, be consulted with respect to significant matters
      relating thereto and may, if necessary or helpful, retain counsel to assist
      in
      the defense of such claims.

     

    (b)           Each
      of the New Entities agrees that at all times from and after the Effective Time,
      if an Action is commenced by a third party (or any member of such Party’s
      respective Group) with respect to which one or more named Parties (or any member
      of such Party’s respective Group) is a nominal defendant and/or such Action is
      otherwise not a Liability allocated to such named Party under this Agreement
      or
      any Ancillary Agreement, then the other Party or Parties shall use commercially
      reasonable efforts to cause such nominal defendant to be removed from such
      Action.

     

    Section
      6.5.                                Indemnification
      Payments.  Indemnification required by this Article VI shall be made by payments of the
      amount thereof during the course of the investigation or defense, as and when
      bills are received or an Indemnifiable Loss or Liability incurred or as
      otherwise required under Section
      6.3(i).

     

    Section
      6.6.                                Contribution.

     

    (a)           If
      the indemnification provided for in Section
      6.2 is unavailable to, or insufficient to hold harmless an Indemnitee
      under this Agreement or any Ancillary Agreement in respect of any Liabilities
      referred to herein or therein, then each Indemnifying Party shall contribute
      to
      the amount paid or payable by such Indemnitee as a result of such Liabilities
      in
      such proportion as is appropriate to reflect the relative fault of the
      Indemnifying Party and the Indemnitee in connection with the actions or
      omissions that resulted in Liabilities as well as any other relevant equitable
      considerations.

     

    (b)           The
      Parties agree that it would not be just and equitable if contribution pursuant
      to this Section 6.6 were determined by a pro
      rata allocation or by any other method of allocation that does not take account
      of the equitable considerations referred to in Section 6.6(a).  The amount paid or
      payable by an Indemnitee as a result of the Liabilities referred to in Section 6.6(a) shall be deemed to include,
      subject to the limitations set forth above, any legal or other fees or expenses
      reasonably incurred by such Indemnitee in connection with investigating any
      claim or defending any Action.  No Person guilty of fraud or
      fraudulent misrepresentation shall be entitled to contribution from any Person
      who was not guilty of such fraud or fraudulent misrepresentation.

     

    Section
      6.7.                                Indemnification
      Obligations Net of Insurance Proceeds and Other Amounts.

     

    (a)           Any
      Indemnifiable Loss subject to indemnification or contribution pursuant to this
      Article VI, will be calculated (i) net of
      Insurance Proceeds that actually reduce

     

    
       

      
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    the
      amount of the Indemnifiable Loss and (ii) net of any proceeds received by the
      Indemnitee from any third party for indemnification for such Liability that
      actually reduce the amount of the Indemnifiable Loss (“Third-Party
      Proceeds”).  Accordingly, the amount which any Indemnifying Party
      is required to pay pursuant to this Article
      VI to any Indemnitee pursuant to this Article VI will be reduced by any Insurance
      Proceeds or Third-Party Proceeds theretofore actually recovered by or on behalf
      of the Indemnitee in respect of the related Indemnifiable Loss.  If an
      Indemnitee receives a payment required by this Agreement from an Indemnifying
      Party in respect of any Indemnifiable Loss (an “Indemnity Payment”) and
      subsequently receives Insurance Proceeds or Third-Party Proceeds, then the
      Indemnitee will pay to the Indemnifying Party an amount equal to the excess
      of
      the Indemnity Payment received over the amount of the Indemnity Payment that
      would have been due if the Insurance Proceeds or Third-Party Proceeds had been
      received, realized or recovered before the Indemnity Payment was
      made.

     

    (b)           An
      insurer who would otherwise be obligated to pay any claim shall not be relieved
      of the responsibility with respect thereto or, solely by virtue of the
      indemnification and contributions provisions hereof, have any subrogation rights
      with respect thereto.  The Indemnitee shall use commercially
      reasonable efforts to seek to collect or recover any third-party Insurance
      Proceeds and any Third-Party Proceeds (other than Insurance Proceeds under
      an
      arrangement where future premiums are adjusted to reflect prior claims in excess
      of prior premiums) to which the Indemnified Party is entitled in connection
      with
      any Indemnifiable Loss for which the Indemnified Party seeks contribution or
      indemnification pursuant to this Article VI;
provided, that the Indemnitee’s inability to collect or recover
      any such
      Insurance Proceeds or Third-Party Proceeds shall not limit the Indemnifying
      Party’s obligations hereunder.

     

    (c)           In
      respect of the receipt of an Indemnity Payment, the Indemnitee agrees to make
      and file, on a timely basis, an election under subsection 12(2.2), 13(7.4)
      or
      53(2.1) of the

     

    Income
      Tax Act (Canada) and any corresponding provisions of any provincial taxing
      statutes, to the extent applicable, to reduce the cost or capital cost of
      property or the amount of the reimbursed outlay or expense, as applicable,
      by
      the amount of the Indemnity Payment.

     

    (d)           If
      an Indemnity Payment is made by an Indemnifying Party to an Indemnitee in
      respect of a claim made in connection with an Indemnifiable Loss (referred
      to in
      this Section 6.7(d) as the “Claim Amount”)
      and the incurring of such Claim Amount by the Indemnitee constitutes an outlay
      or expense which is deductible in whole or in part in computing the income
      of
      the Indemnitee for income tax purposes, then the Indemnity Payment shall be
      adjusted with retroactive effect in accordance with the following
      rules:

     

    (i)           if,
      taking into account an election made pursuant to Section 6.7(c), the Indemnity Payment is
      required to be included in computing the income of the Indemnitee for income
      tax
      purposes to the same extent that the Claim Amount is deductible in computing
      the
      income of the Indemnitee, then no adjustment shall be required to be made to
      the
      Indemnity Payment;

     

    
      
        
        

      

      
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    (ii)           if,
      taking into account an election made pursuant to Section 6.7(c), the Indemnity Payment is not
      required to be included in computing the income of the Indemnitee for income
      tax
      purposes or is required to be included in computing such income to a lesser
      extent than the Claim Amount is deductible in computing the income of the
      Indemnitee, then the Indemnitee shall, within a reasonable time after the
      expiration of all limitation periods during which a reassessment may be made
      or
      an appeal filed in respect of an income tax assessment recognizing or giving
      effect to the deduction, pay to the Indemnifying Party an amount equal to the
      benefit available to the Indemnified Party resulting from the deduction in
      computing income; and

     

    (iii)           if,
      taking into account an election made pursuant to Section 6.7(c), the Indemnity Payment is
      required to be included in computing the income of the Indemnitee for income
      tax
      purposes to a greater extent than the Claim Amount is deductible in computing
      the income of the Indemnified Party, then the Indemnifying Party shall pay
      to
      the Indemnitee an additional amount such that the total net amount received
      by
      the Indemnitee, after deducting the amount of income taxes payable by the
      Indemnitee on such total amount, calculated without regard to any deductions,
      offsets, credits or other benefits available to and claimed or deducted by
      the
      Indemnitee in computing its income, taxable income or tax, equals the net cost
      to the Indemnitee of the Claim Amount.

     

    (e)           If
      an Indemnity Payment is made by an Indemnifying Party to an Indemnitee in
      respect of a Claim Amount and the incurring of such Claim Amount by the
      Indemnitee does not constitute an outlay or expense which is deductible in
      whole
      or in part in computing the income of the Indemnitee for income tax purposes,
      then the Indemnity Payment shall be adjusted with retroactive effect in
      accordance with the following rules:

     

    (i)           if,
      taking into account an election made pursuant to Section 6.7(c), the Indemnity Payment is not
      required to be included in computing the income of the Indemnitee for income
      tax
      purposes, then no adjustment shall be required to be made to the Indemnity
      Payment; and

     

    (ii)           if,
      taking into account an election made pursuant to Section 6.7(c), the Indemnity Payment is
      required to be included in computing the income of the Indemnitee for income
      tax
      purposes, then the Indemnifying Party shall pay to the Indemnified Party such
      additional amounts such that the total net amount received by the Indemnitee,
      after deducting the amount of income taxes payable by the Indemnitee on such
      total amount, calculated without regard to any deductions, offsets, credits
      or
      other benefits available to and claimed or deducted by the Indemnitee in
      computing its income, taxable income or tax, equals the net cost to the
      Indemnitee of the Claim Amount.

     

    
      
        
        

      

      
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    Section
      6.8.                                Additional
      Matters; Survival of Indemnities.

     

    (a)           The
      indemnity and contribution agreements contained in this Article VI shall remain operative and in full
      force and effect, regardless of (i) any investigation made by or on behalf
      of
      any Indemnitee; (ii) the knowledge by the Indemnitee of Indemnifiable Losses
      for
      which it might be entitled to indemnification or contribution hereunder; and
      (iii) any termination of this Agreement.

     

    (b)           The
      rights and obligations of each Party and their respective Indemnitees under
      this
Article VI shall survive the sale or other
      Transfer by any Party or its respective Subsidiaries of any Assets or businesses
      or the assignment by it of any Liabilities.

     

    ARTICLE
      VII

     

    

     

    CONFIDENTIALITY;
      ACCESS TO INFORMATION

     

    Section
      7.1.                                Corporate
      Information Repository.

     

    (a)           CW
      Media shall cause the creation of, shall maintain, and shall provide access
      to
      the Corporate Information Repository.

     

    (b)           Each
      of the New Entities other than STV shall identify and provide to STV, solely
      for
      inclusion in the Corporate Information Repository, and STV shall include, any
      Corporate Information in its possession, custody or control that does not relate
      solely to (i) it, any member of its Group, the conduct of its Business or any
      liability for which it is solely responsible pursuant to this Agreement, or
      (ii)
      any Ancillary Agreement to which it or a member of its Group is a
      Party.  STV shall use commercially reasonable efforts to place into
      the Corporate Information Repository any Corporate Information in its
      possession, custody or control that does not relate solely to STV, any member
      of
      the STV Group or the conduct of the Specialty Television
      Business.  Such Corporate Information includes Information contained
      on personal computers, shared storage devices, office paper files, and off-site
      file storage sites.

     

    Section
      7.2.                                Access
      to Information.  (i)  Other than in circumstances in
      which indemnification is sought pursuant to Article
      VI (in which event the provisions of such Article will govern), from
      and
      after the Effective Time, each of the Parties shall on reasonable notice afford
      to each other and their respective authorized accountants, counsel and other
      designated representatives reasonable access during normal business hours,
      subject to applicable privacy laws and appropriate restrictions for classified,
      privileged or confidential information and to preserve the completeness and
      integrity of the Information, to the personnel, properties, and Information
      of
      such Party and its Subsidiaries (including the Corporate Information Repository)
      insofar as such access is reasonably required by the other Party and relates
      to
      (x) such other Party or the conduct of its

     

    
      
        
        

      

      
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    business
      prior to the Effective Time or (y) any Ancillary Agreement to which each of
      the
      Parties requesting such access and the Party requested to grant such access
      are
      Parties.  Nothing in this Section
      7.2 shall require any Party to violate any agreement with any third
      party regarding the confidentiality of confidential and proprietary information
      relating to that third party or its business; provided, however,
      that in the event that a Party is required to disclose any such information,
      such Party shall use commercially reasonable efforts to seek to obtain such
      third party Consent to the disclosure of such information.  With
      respect to access to Information contained in the Corporate Information
      Repository, the Parties agree and acknowledge that such access (including any
      searches for specific Information in the Corporate Information Repository,
      and
      the making of copies thereof), may be conducted directly by a Party’s employees
      or its designees subject to appropriate confidentiality obligations,
provided that STV, in its capacity as operator of the Corporation
      Information Repository, shall take reasonable and prudent measures in connection
      with such access and related activities to preserve the integrity and
      confidentiality of the Corporate Information Repository and the Information
      contained therein.

     

    (b)           Each
      Party agrees that it shall preserve and keep, or cause to be preserved and
      kept,
      all original books and records in respect of the Corporate Division in the
      possession of such Party or members of its Group for a period of ten (10) years
      from the Closing Date.  Following such ten (10) year period, before
      any Party or members of their respective Groups shall dispose of any of such
      books and records, such Party shall give at least 90 days’ prior written notice
      of such intention to dispose to the other Parties, and the other Parties shall
      be given an opportunity, at their cost and expense, to remove and retain all
      or
      any part of such books and records as they may elect.

     

    (c)           Any
      Information provided by or on behalf of or made available by or on behalf of
      any
      other Party hereto pursuant to this Article
      VII shall be on an “as is,” “where is” basis and no Party is making any
      representation or warranty with respect to such Information or the completeness
      thereof.

     

    Section
      7.3.                                Disposition
      of Information.

     

    (a)           Each
      Party acknowledges that Information in its or in a member of its Group’s
      possession, custody or control as of the Effective Time may include Information
      owned by another Party or a member of another Party’s Group and not related to
      (i) it or its Business or (ii) any Ancillary Agreement to which it or any member
      of its Group is a Party.

     

    (b)           Notwithstanding
      such possession, custody or control, such Information shall remain the property
      of such other Party or member of such other Party’s Group.  Each Party
      agrees, subject to legal holds and other legal requirements and obligations,
      (i)
      that any such Information is to be treated as Confidential Information of the
      Party or Parties to which it relates and handled in accordance with Section 7.6 (except that such Information will
      not be used for any purpose) and (ii) to use commercially reasonable efforts
      within a reasonable time to (1) purge such Information from its databases,
      files
      and other systems and not retain any copy of such Information (including, if
      applicable, by transferring such Information to the Party to which such
      Information belongs), or (2) if such purging is not practicable, to encrypt
      or
      otherwise make unreadable or inaccessible such Information.

     

    
      
        
        

      

      
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    Section
      7.4.                                Witness
      Services.  At all times from and after the Effective Time, each of
      the New Entities shall use its commercially reasonable efforts to make available
      to the others, upon reasonable written request, its and any member of its
      Group’s officers, directors, employees and agents as witnesses to the extent
      that (i) such Persons may reasonably be required to testify in connection with
      the prosecution or defense of any Action or Tax Contest in which the requesting
      Party may from time to time be involved (except for claims, demands or Actions
      or Tax Contest between members of each Group) and (ii) there is no conflict
      in
      the Action between the requesting Party and such New Entity or its Group, as
      applicable.  A Party providing, or whose Group is providing, a witness
      to another Party under this Section 7.4
      shall be entitled to receive from the recipient of such services, upon the
      presentation of invoices therefor, payments for such amounts, relating to
      disbursements and other out-of-pocket expenses (which shall not include the
      costs of salaries and benefits of employees who are witnesses or any pro rata
      portion of overhead or other costs of employing such employees which would
      have
      been incurred by such employees’ employer regardless of the employees’ service
      as witnesses), as may be reasonably incurred and properly paid under applicable
      Law.

     

    Section
      7.5.                                Reimbursement;
      Other Matters.  Except to the extent otherwise contemplated by
      this Agreement or any Ancillary Agreement, a Party providing, or whose Group
      is
      providing, Information or access to Information to another Party under this
Article VII shall be entitled to receive from
      the recipient, upon the presentation of invoices therefor, payments for such
      amounts, relating to supplies, disbursements and other out-of-pocket expenses,
      as may be reasonably incurred in providing such Information or access to such
      Information.

     

    Section
      7.6.                                Confidentiality.

     

    (a)           Notwithstanding
      any termination of this Agreement, for a period of five (5) years from the
      Effective Time the Parties shall hold, and shall cause each of their respective
      Subsidiaries to hold, and shall each cause their respective officers, employees,
      agents, consultants and advisors to hold, in strict confidence, and not to
      disclose or release or use, without the prior written consent of the other
      Parties, any and all Confidential Information (as defined herein) concerning
      any
      other Party or the other Party’s Group; provided, that the Parties may
      disclose, or may permit disclosure of, Confidential Information (i) to their
      respective auditors, attorneys, financial advisors, bankers and other
      appropriate consultants and advisors who have a need to know such information
      and are informed of their obligation to hold such information confidential
      to
      the same extent as is applicable to the Parties and in respect of whose failure
      to comply with such obligations, the applicable Party will be responsible,
      (ii)
      if the Parties or any of their respective Subsidiaries are required or compelled
      to disclose any such Confidential Information by judicial or administrative
      process or by other requirements of Law or stock exchange rule, (iii) as
      required in connection with any legal or other proceeding by one Party against
      any other Party, (iv) as necessary in order to permit a Party to prepare and
      disclose its financial statements, Tax Returns or other required disclosures;
      (v) if and to the extent such Confidential Information has at the time become
      public knowledge other than by act or omission of the disclosing Party; (vi)
      if
      and to the extent the disclosing Party has at the time received such
      Confidential Information from a third party that the disclosing Party reasonably
      believes not to

     

    
      
        
        

      

      
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    have
      any
      confidentiality obligations to the Party to whom the Confidential Information
      relates; or (vii) if such Confidential Information is independently developed
      by
      the disclosing Party without reference to or reliance on any Confidential
      Information.  Notwithstanding the foregoing, in the event that any
      demand or request for disclosure of Confidential Information is made pursuant
      to
      clause (ii) above, each Party, as applicable, shall promptly notify the other
      of
      the existence of such request or demand and shall provide the other a reasonable
      opportunity to seek an appropriate protective order or other remedy, which
      such
      Parties will cooperate in obtaining.  In the event that such
      appropriate protective order or other remedy is not obtained, the Party whose
      Confidential Information is required to be disclosed shall or shall cause the
      other applicable Party or Parties to furnish, or cause to be furnished, only
      that portion of the Confidential Information that is legally required to be
      disclosed and shall take commercially reasonable steps to ensure that
      confidential treatment is accorded such information.

     

    (b)           Notwithstanding
      anything to the contrary set forth herein, Confidential Information of any
      Party
      rightfully in the possession of and used by any other Party in the operation
      of
      its Business as of the Effective Time may continue to be used by such Party
      in
      possession of the Confidential Information in and only in the operation of
      the
      Corresponding Business of such Party; provided, that such use is not
      competitive in nature to any such other Parties, and may be used only so long
      as
      the Confidential Information is maintained in confidence and not disclosed
      in
      violation of Section 7.6(a) , except that
      Confidential Information may be disclosed to third parties other than those
      listed in Section 7.6(a), provided
      that such disclosure to such other third parties and any associated use of
      such
      information must be pursuant to a written agreement containing confidentiality
      obligations at least as protective of the Parties rights to Confidential
      Information as those contained in this Agreement.  Such continued
      right to use may not be transferred (directly or indirectly) to any third party
      without the prior written consent of the applicable Party.

     

    (c)           Each
      of the New Entities acknowledges that it and the other members of its Group
      may
      have in their possession confidential or proprietary information of third
      parties that was received under confidentiality or non-disclosure agreements
      with such third party while part of the Predecessor and its
      Subsidiaries.  Each of the New Entities will hold, and will cause the
      other members of its Group and their respective representatives to hold, in
      strict confidence the confidential and proprietary information of third parties
      to which they or any other member of their Group have access, in accordance
      with
      the terms of any agreements entered into prior to the Effective Time between
      one
      or more of the Predecessor and its Subsidiaries (whether acting through, on
      behalf of, or in connection with, the separated Businesses) and such third
      parties to the extent that such New Entity or any member of its Group is aware
      of such terms of such agreements.

     

    Section
      7.7.                                Privileged
      Matters.

     

    (a)           The
      Parties recognize that legal and other professional services that have been
      and
      will be provided prior to the Effective Time have been and will be rendered
      for
      the collective benefit of each of the Predecessor and its Subsidiaries and
      the
      Groups, and that each of

     

    
      
        
        

      

      
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    the
      Predecessor and its Subsidiaries and the Groups should be deemed to be the
      client with respect to such pre-separation services for the purposes of
      asserting all privileges which may be asserted under applicable
      Law.

     

    (b)           The
      Parties recognize that legal and other professional services will be provided
      following the Effective Time which will be rendered solely for the benefit
      of
      one of CW Media and the New Entities.  With respect to such
      post-separation services, the Parties agree that each New Entity shall be
      entitled, in perpetuity, to control the assertion or waiver of all privileges
      in
      connection with privileged information which relates solely to the Corresponding
      Business of such New Entity or to the subject matter of any claims constituting
      Corresponding Liabilities of such New Entity, now pending or which may be
      asserted in the future by such New Entity or a third party, in each case
      regardless of which of CW Media or the New Entities has possession or control
      of
      the privileged information.

     

    (c)           The
      Parties agree that they shall have a shared privilege, with equal right to
      assert or waive, subject to the restrictions in this Section 7.7, with respect to all privileges not
      allocated pursuant to the terms of Section
      7.7(b).  All privileges relating to any Actions or other
      matters which involve two or more of the New Entities in respect of which two
      or
      more of such Parties retain any responsibility or Liability under this
      Agreement, shall be subject to a shared privilege among them.

     

    (d)           No
      Party may waive any privilege which could be asserted under any applicable
      Law,
      and in which any other Party has a shared privilege, without the consent of
      the
      other Party, which shall not be unreasonably withheld, conditioned or delayed,
      or as provided in Section 7.7(e) or Section
      7.7(f) below.  Consent shall
      be in writing, or shall be deemed to be granted unless written objection is
      made
      within twenty (20) days after notice upon the other Party requesting such
      consent.

     

    (e)           In
      the event of any litigation or dispute between or among any of the Parties,
      or
      any members of their respective Groups, either such Party may waive a privilege
      in which the other Party or member of such Group has a shared privilege, without
      obtaining the consent of the other Party; provided, that such waiver of a
      shared privilege shall be effective only as to the use of information with
      respect to the litigation or dispute between the relevant Parties and/or the
      applicable members of their respective Groups, and shall not operate as a waiver
      of the shared privilege with respect to third parties.

     

    (f)           If
      a dispute arises between or among the Parties or their respective Subsidiaries
      regarding whether a privilege should be waived to protect or advance the
      interest of any Party, each Party agrees that it shall negotiate in good faith,
      shall endeavor to minimize any prejudice to the rights of the other Parties,
      and
      shall not unreasonably withhold consent to any request for waiver by another
      Party.  Each Party specifically agrees that it will not withhold
      consent to waiver for any purpose except to protect its own legitimate
      interests.

     

    (g)           Upon
      receipt by any Party or by any Subsidiary thereof of any subpoena, discovery
      or
      other request which arguably calls for the production or disclosure of
      information subject to a shared privilege or as to which another Party has
      the
      sole right hereunder to assert a

     

    
      
        
        

      

      
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    privilege,
      or if any Party obtains knowledge that any of its or any of its Subsidiaries’
current or former directors, officers, agents or employees have received any
      subpoena, discovery or other requests which arguably calls for the production
      or
      disclosure of such privileged information, such Party shall promptly notify
      the
      other Party or Parties of the existence of the request and shall provide the
      other Party or Parties a reasonable opportunity to review the information and
      to
      assert any rights it or they may have under this Section 7.7 or otherwise to prevent the
      production or disclosure of such privileged information.

     

    (h)           The
      transfer of all Information pursuant to this Agreement is made in reliance
      on
      the agreement of the Parties as set forth in Section
      7.6 and Section 7.7, to maintain the
      confidentiality of privileged information and to assert and maintain all
      applicable privileges.  The access to information being granted
      pursuant to Section 6.3, Section
      7.1 and Section 7.2 hereof, the agreement to provide
      witnesses and individuals pursuant to Section
      6.3 and Section 7.4 hereof, the
      furnishing of notices and documents and other cooperative efforts contemplated
      by Section 6.3 hereof, and the transfer of
      privileged information between and among the Parties and their respective
      Subsidiaries pursuant to this Agreement shall not be deemed a waiver of any
      privilege that has been or may be asserted under this Agreement or
      otherwise.

     

    Section
      7.8.                                Ownership
      of Information.  Any information owned by one Party or any of its
      Subsidiaries that is provided to a requesting Party pursuant to this Article VII shall be deemed to remain the
      property of the providing Party.  Unless specifically set forth
      herein, nothing contained in this Agreement shall be construed as granting
      or
      conferring rights of license or otherwise in any such information.

     

    Section
      7.9.                                Other
      Agreements.  The rights and obligations granted under this Article VII are subject to any specific
      limitations, qualifications or additional provisions on the sharing, exchange
      or
      confidential treatment of information set forth in any Ancillary
      Agreement.

     

    
      
        
        

      

      
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    ARTICLE
      VIII

     

    

     

    DISPUTE
      RESOLUTION

     

    Section
      8.1.                                Negotiation.  In
      the event of a controversy, dispute or claim arising out of, in connection
      with,
      or in relation to the interpretation, performance, nonperformance, validity
      or
      breach of this Agreement or otherwise arising out of, or in any way related
      to
      this Agreement or the transactions contemplated hereby, including any claim
      based upon contract, tort, statute or constitution (but excluding any
      controversy, dispute or claim arising out of any Contract relating to the use
      or
      lease of real property if any third party is a necessary party to such
      controversy, dispute or claim) (collectively, “Agreement Disputes”), the
      Party asserting the Agreement Dispute shall deliver to the other Party or
      Parties a written notice of such Agreement Dispute (“Dispute
      Notice”).  Following receipt of the Dispute Notice, the general
      counsels of the relevant Parties and/or such other executive officer designated
      by the relevant Party shall negotiate for a reasonable period of time to settle
      such Agreement Dispute; provided, that such reasonable period shall not,
      unless otherwise agreed by the relevant Parties in writing, exceed thirty (30)
      days from the time of receipt of the Dispute Notice.

     

    Section
      8.2.                                Arbitration.  If
      the Agreement Dispute has not been resolved for any reason after thirty (30)
      days have elapsed from the receipt by a Party of a Dispute Notice, such
      Agreement Dispute shall be referred to and determined by arbitration before
      a
      single arbitrator to be administered by ADR Chambers Inc., based in the City
      of
      Toronto, in accordance with its Arbitration Rules and the Ontario
International Commercial Arbitration Act, R.S.O. 1990 c. I.9 (the
“Arbitration Act”).  The seat of the arbitration shall be
      Ontario and hearings shall be conducted in the City of Toronto.  A
      Party to the arbitration (the “Appellant”) may appeal an award on a
      question of law or a question of mixed fact and law by delivering a written
      notice of appeal (“Notice of Appeal”) to the party opposite (the
“Appeal Respondent”) within ten (10) days of receipt of the
      award.  With the Notice of Appeal, the Appellant shall name three
      persons whom the Appellant is prepared to nominate as appeal arbitrators, each
      of such persons to be a former appellate judge of the Ontario Court of Appeal
      or
      the Supreme Court of Canada (an “Appeal Arbitrator”).  Within
      seven (7) days of the receipt of the Notice of Appeal, the Appeal Respondent
      shall by written notice to the Appellant select one or more of the three (3)
      persons named by the Appellant or provide the Appellant with a list of three
      (3)
      persons who are Appeal Arbitrators.  Within seven (7) days of receipt
      of the Appeal Respondent’s list, by written notice to the Appeal Respondent, the
      Appellant shall select one or more of such persons and/or provide a further
      list
      of three Appeal Arbitrators.  The Parties shall continue to exchange
      lists of three (3) Appeal Arbitrators in this fashion until three (3) Appeal
      Arbitrators are selected.  If the parties are unable to agree upon
      three (3) Appeal Arbitrators within twenty (20) days of the receipt by the
      Appeal Respondent of the Notice of Appeal, each party shall appoint one (1)
      Appeal Arbitrator, and the two (2) Appeal Arbitrators thus appointed shall
      appoint a third Appeal Arbitrator.  Where the two (2) Appeal
      Arbitrators fail to agree on the third Appeal Arbitrator within ten (10) days
      of
      their appointment, either Party may provide copies of the exchanged lists to
      ADR
      Chambers Inc. which shall appoint the third Appeal Arbitrator.  Where
      an appeal is taken, the award of the Appeal

     

    
      
        
        

      

      
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    Arbitrators
      shall be final and binding upon the Parties and there shall be no further right
      of appeal.  The award of the Appeal Arbitrators shall be an arbitral
      award under the Arbitration Act.  Arbitration in accordance with the
      provisions of this Section 8.2 shall be the
      sole dispute resolution mechanism in respect of any Agreement Dispute except
      it
      is not incompatible with this arbitration agreement for any Party to request,
      before or during the arbitral proceedings, from a competent court any interim,
      provisional or conservatory relief and for the court to grant such
      relief.  The Parties undertake as a general principle to keep
      confidential all information concerning the existence of the arbitration, all
      awards or appeals in the arbitration, all materials in the proceedings created
      or used for the purpose of the arbitration, and all materials and information
      produced during the arbitration and not in the public domain (“Confidential
      Arbitration Information”) save and to the extent that disclosure may be
      required of a Party by legal duty, to protect or pursue a legal right or to
      enforce or set aside an award in a bona fide Action before a competent
      court.  Each Party shall obtain and deposit with the arbitrator a
      signed confidentiality undertaking from its legal counsel, independent experts
      and consultants regarding the Confidential Arbitration Information.

     

    Section
      8.3.                                Waiver
      of Time-Based Defenses.  The relevant Parties shall not assert the
      defenses of statute of limitations and laches arising during the period
      beginning after the date of receipt of the Dispute Notice, and any contractual
      time period or deadline under this Agreement or any Ancillary Agreement to
      which
      such Agreement Dispute relates occurring after the Dispute Notice is received
      shall not be deemed to have passed until such Agreement Dispute has been
      resolved.

     

    Section
      8.4.                                Continuity
      of Service and Performance.  Unless otherwise agreed in writing,
      the Parties will continue to provide service and honor all other commitments
      under this Agreement and each Ancillary Agreement during the course of dispute
      resolution pursuant to the provisions of this Article VIII with respect to all matters not
      subject to such dispute resolution.

     

    Section
      8.5.                                Costs.  Except
      as otherwise may be provided in any Ancillary Agreement, the costs of any
      mediation or arbitration pursuant to this Article
      VIII shall be borne by the Party or Parties in such proportion as the
      arbitrator determines based on the facts and circumstances.

     

    ARTICLE
      IX

     

    

     

    INSURANCE

     

    Section
      9.1.                                Policies
      and Rights Included Within Assets.  With respect to any New
      Entity, the Corresponding Assets of such New Entity shall include any and all
      rights of an insured Party under each of the Corresponding Shared Policies
      of
      such New Entity, subject to the terms of such Corresponding Shared Policies
      and
      any limitations or obligations of such New Entity contemplated by this Article IX, specifically including rights of
      indemnity and the right to be

     

    
      
        
        

      

      
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    defended
      by or at the expense of the insurer, with respect to all alleged wrongful acts,
      claims, suits, actions, proceedings, injuries, losses, liabilities, damages
      and
      expenses incurred or claimed to have been incurred prior to the Closing Date
      by
      any Party in or in connection with the conduct of the Corresponding Business
      of
      such New Entity or, to the extent any claim is made against such New Entity
      or
      any member of its Group, the conduct of other Businesses, and which alleged
      wrongful acts, claims, suits, actions, proceedings, injuries, losses,
      liabilities, damages and expenses may arise out of an insured or insurable
      occurrence or wrongful act under one or more of such Corresponding Shared
      Policies; provided, however, that nothing in this Section 9.1 shall be deemed to constitute
      (or
      to reflect) an assignment of such Corresponding Shared Policies, or any of
      them,
      to such New Entity.

     

    Section
      9.2.                                Claims
      Made Tail Policies.

     

    (a)           CW
      Media shall purchase Directors and Officers Liability Insurance Policies from
      reputable and financially sound carriers expiring six years from the Effective
      Time and providing at least the same coverage and amount and containing terms
      and conditions that are no less favourable to the covered persons in respect
      of
      claims or events that existed or occurred at or prior to the Effective Time
      under the current policies of directors’ and officers’ liability insurance
      maintained prior to the Effective Time by CW Media and its Subsidiaries
      (“D&O Tail Policies”); provided, that CW Media shall not be
      obligated to pay aggregate premiums for any 12-month period in excess of 200%
      of
      the amount paid by CW Media for coverage for the most recently completed
      calendar year, and shall instead reduce the amount of coverage only to the
      extent necessary to reduce aggregate annual premiums to this maximum
      amount.  Such D&O Tail Policies shall cover the New Entities and
      the insured persons thereof.  Premiums actually paid by CW Media in
      respect of D&O Tail Policies shall be treated as Separation Expenses and
      dealt with in accordance with Schedule 1.1(123).  CW Media shall provide each New
      Entity with copies of the D&O Tail Policies within a reasonable time after
      the Policies are issued.

     

    (b)           To
      the extent that CW Media is unable to obtain the D&O Tail Policies, then,
      with respect to claims based on wrongful acts on or before the Effective Time,
      CW Media shall use commercially reasonable efforts to secure alternative
      insurance arrangements on the applicable standalone insurance policies for
      each
      New Entity to provide benefits on terms and conditions (including policy limits)
      in favour of such New Entity and the insured persons thereof no less favourable
      than the benefits (including policy limits) that were to be afforded by the
      D&O Tail Policies.  With respect to such alternative insurance
      arrangements, CW Media, and each New Entity shall be responsible for premiums
      actually paid by CW Media and the New Entities collectively under their
      applicable standalone insurance policies in the same proportion that such New
      Entity is responsible for the Residual Liabilities hereunder.  CW
      Media shall not under any circumstances purchase any such alternative coverage
      containing an exclusion for claims based on wrongful acts up to and including
      the Closing Date to the extent such exclusion would preclude coverage for any
      New Entity other than STV and/or the insured persons thereof, but would not
      preclude coverage for CW Media, STV and/or the insured persons
      thereof.

     

    Section
      9.3.                                Occurrence
      Based Policies.  With respect to the Shared Policies owned by a
      Party (or any member of

     

    
      
        
        

      

      
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    its
      Group) of automobile liability, general liability and other occurrence-based
      insurance, for claims that occur prior to the Closing Date, such Party will
      continue to provide the other Parties with access to such Shared Policies and
      shall reasonably cooperate with such other Parties and take commercially
      reasonable actions as may be necessary or advisable to assist such other Parties
      in submitting such claims to which such Shared Policies are responsive;
provided, that such other Parties shall be responsible for any
      deductibles or co-payments legally due and owing relating to such
      claims.  Notwithstanding anything in the preceding sentence, no Party
      shall be required to maintain any Shared Policy beyond its current
      terms.

     

    Section
      9.4.                                Administration;
      Other Matters.

     

    (a)           Administration.  Except
      as otherwise provided in Section 9.3 hereof,
      from and after the Effective Time, with respect to any Shared Policies owned
      by
      a Party (or any member of its Group), such Party shall be responsible for the
      following administrative functions: (i) the accounting for premiums,
      retrospectively-rated premiums, defense costs, indemnity payments, deductibles
      and retentions, as appropriate, under the terms and conditions of each of the
      Shared Policies, (ii) the reporting to excess insurance carriers of any losses
      or claims which may cause the per-occurrence, per claim or aggregate limits
      of
      any Shared Policy to be exceeded, (iii) the distribution of Insurance Proceeds
      as contemplated by this Agreement and (iv) the processing of claims made under
      the Shared Policies, including the reporting of claims to the insurance
      carriers, management and defense of claims and providing for appropriate
      releases upon settlement of claims, with respect to Corresponding Liabilities
      of
      each Group; provided, that the retention of such responsibilities by such
      Party is in no way intended to limit, inhibit or preclude any right to insurance
      coverage for any Insured Claim of a named insured under such Policies as
      contemplated by the terms of this Agreement; provided, further,
      that such Party’s retention of the administrative responsibilities for the
      Shared Policies shall not relieve the Party submitting any Insured Claim of
      the
      primary responsibility for reporting such Insured Claim accurately, completely
      and in a timely manner or of such Party’s authority to settle any such Insured
      Claim within any period permitted or required by the relevant Policy; and
provided, further, that each Party and its Group shall bear the
      costs of such administration in the same proportion as such Party and its Group
      bears responsibility for Residual Liabilities, except that such Party and its
      Group shall not be responsible for such costs from and after (i) such time
      as
      such Party’s Group no longer receives any benefits under such Shared Policy,
      (ii) such Shared Policy is terminated or (iii) such Party has elected, after
      giving reasonable notice, that such Party’s Group shall no longer receive any
      benefits from such Shared Policy.  Each Party may discharge its
      administrative responsibilities under this Section
      9.4 by contracting for the provision of services by independent
      parties.  Each of the applicable Parties shall pay any costs relating
      to defending its respective Insured Claims under Shared Policies to the extent
      such costs including defense, out-of-pocket expenses, and pro rata allocations
      of direct and indirect costs of employees or agents of the administrative Party
      related to the administration responsibilities under this Section 9.4(a) are not covered under such
      Policies.  Each of the Parties shall be responsible for obtaining or
      reviewing the appropriateness of releases upon settlement of its respective
      Insured Claims under Shared Policies.

     

    (b)           Policy
      Limitations.  All claims made by any Party under any Shared Policy
      must be made in good faith and not for the purpose of avoiding the application
      or effect of

     

    
      
        
        

      

      
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    any
      limitations or restrictions of such Shared Policy.  Except as set
      forth in this Section 9.4, CW Media and the
      New Entities shall not be liable to one another for claims not reimbursed by
      insurers for any reason not within the control of such New Entity, including
      coinsurance provisions, deductibles, quota share deductibles, self-insured
      retentions, bankruptcy or insolvency of an insurance carrier, Shared Policy
      limitations or restrictions, any coverage disputes, any failure to timely claim
      by CW Media or a New Entity or any defect in such claim or its
      processing.  It is expressly understood that the foregoing shall not
      limit any Party’s liability to any other Party for indemnification pursuant to
Article VI.

     

    (c)           Allocation
      of Insurance Proceeds.  Except as otherwise provided in Section 9.3, Insurance Proceeds received with
      respect to claims, costs and expenses under any Shared Policy shall be paid
      to
      or on behalf of the Party that owns such Shared Policy, which shall thereafter
      pay the Insurance Proceeds, as appropriate, to each New Entity with respect
      to
      its Corresponding Liabilities.  Payment of the allocable portions of
      indemnity costs of Insurance Proceeds resulting from such Policies will be
      made
      to the appropriate Party upon receipt from the insurance carrier.  In
      the event that the aggregate limits on any Shared Policies are exceeded by
      the
      aggregate of outstanding Insured Claims by two or more of the relevant Parties,
      such Parties agree to allocate the Insurance Proceeds received thereunder based
      upon their respective percentage of the total of their bona fide claims which
      were covered under such Shared Policy, and the Parties shall make such payments
      to each other as required to effect this allocation.  Each of the
      Parties shall take all commercially reasonable steps to recover from all other
      responsible parties in respect of an Insured Claim to the extent coverage limits
      under a Shared Policy have been exceeded or would be exceeded as a result of
      such Insured Claim.

     

    (d)           Allocation
      of Aggregate Deductibles.  In the event that two or more Parties
      have bona fide claims under any Shared Policy for which an aggregate deductible
      is payable, the Parties agree that the aggregate amount of the deductible paid
      shall be borne by the Parties in the same proportion which the Insurance
      Proceeds received by each such Party bears to the total Insurance Proceeds
      received under the applicable Shared Policy, and the Parties shall make such
      payments to each other as required to effect this allocation.

     

    (e)           Effective
      as of the Closing Date, each New Entity shall be responsible for the full amount
      of the deductible for their respective general liability and automobile
      liability claims.

     

    Section
      9.5.                                Cooperation.  The
      Parties agree to use their commercially reasonable efforts to cooperate with
      respect to the various insurance matters contemplated by this Agreement,
      including with respect to joint defense arrangement in the absence of any actual
      or potential conflict of interest.

     

    
      
        
        

      

      
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    ARTICLE
      X

     

    

     

    MISCELLANEOUS

     

    Section
      10.1.                                Complete
      Agreement; Construction.  This Agreement, including the Exhibits
      and Schedules, and the Ancillary Agreements and Continuing Arrangements shall
      constitute the entire agreement between the Parties with respect to the subject
      matter hereof and shall supersede all previous negotiations, commitments and
      writings with respect to such subject matter.  In the event of any
      inconsistency between this Agreement and any Schedule hereto, the Schedule
      shall
      prevail.  In the event and to the extent that there shall be a
      conflict between the provisions of this Agreement and the provisions of any
      Ancillary Agreement or Continuing Arrangement, such Ancillary Agreement or
      Continuing Arrangement shall control; provided, that with respect to any
      Conveyancing and Assumption Instrument (including any contribution agreement,
      asset or stock transfer agreement, asset or stock purchase agreement or any
      similar agreement entered into in order to effectuate the Plan of Separation),
      this Agreement shall control unless it is specifically stated in such
      Conveyancing and Assumption Instrument that it controls over this
      Agreement.

     

    Section
      10.2.                                Counterparts.  This
      Agreement may be executed in more than one counterparts including, in respect
      of
      the Additional Parties, one or more counterparts of Schedule 1, all of which
      shall be considered one and the same agreement, and shall become effective
      when
      one or more such counterparts have been signed by each of the Parties and
      delivered to the other Parties.

     

    Section
      10.3.                                Survival
      of Agreements.  Except as otherwise contemplated by this Agreement
      or any Ancillary Agreement, all covenants and agreements of the Parties
      contained in this Agreement and each Ancillary Agreement shall survive the
      Effective Time and remain in full force and effect in accordance with their
      applicable terms.

     

    Section
      10.4.                                Expenses.  Except
      as otherwise provided (i) in this Agreement (including with respect to
      Separation Expenses) or (ii) in any Ancillary Agreement, each Party shall bear
      its own out-of-pocket fees and expenses and internal fees, costs and expenses
      incurred or to be incurred by such Party or member of such Party’s Group, and
      shall reimburse any other Party to the extent such Party has paid such costs
      and
      expenses on behalf of the responsible Party).

     

    Section
      10.5.                                Notices.  In
      this Section 10.5, a reference:

     

    (1)           To
      “CanWest” means in care of:

     

    CanWest
      MediaWorks Inc.

     

    31st
      Floor, 201 Portage Avenue

     

    
      
        
        

      

      
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    CanWest
      Global Place

     

    Winnipeg,
      MB  R3B 3L7

     

    Attention:                                General
      Counsel

     

    Fax:                      (204)
      947-9841

     

    E-mail:                      rleipsic@canwest.com

     

    with
      a
      copy (which shall not constitute Notice) to:

     

    Osler,
      Hoskin & Harcourt LLP

     

    Box
      50,
      One First Canadian Place

     

    Toronto,
      ON  M5X 1B8

     

    Attention:                                Linda
      Robinson

     

    Fax:           (416)
      862-6666

     

    E-mail:                      lrobinson@osler.com:

     

    (2)           To
      “GSCP” means in care of:

     

    GS
      Capital Partners AA Investment LLC

     

    85
      Broad
      Street

     

    New
      York,
      NY 10004

     

    U.S.A.

     

    Attention:                                Gerry
      Cardinale

     

    Fax
      No.:                      212-357-5505

     

    E-mail:                      gerry.cardinale@gs.com

     

    with
      a
      copy (which shall not constitute Notice) to:

     

    GS
      Capital Partners VI, L.P.

     

    One
      New
      York Plaza

     

    38th
      Floor

     

    New
      York,
      NY 10004

     

    U.S.A.

     

    Attention:                                Ben
      Adler

     

    Fax
      No.:                      212-482-3820

     

    Email:                                ben.adler@gs.com

     

    (3)           To
      “Edgestone” means in care of:

     

    
      
        
        

      

      
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    Edgestone
      Capital Partners, Inc.

     

    The
      Exchange Tower

     

    130
      King
      Street West

     

    Suite
      600, Box 187

     

    Toronto,
      ON   M5X 1A6

     

    Attention:                                Sandra
      Cowan

     

    Fax
      No.:                      (416)
      860-9838

     

    Email:

     

    All
      notices, requests, claims, demands and other communications under this Agreement
      and, to the extent applicable and unless otherwise provided therein, under
      each
      of the Ancillary Agreements shall be in writing and shall be given or made
      (and
      shall be deemed to have been duly given or made upon receipt) by delivery in
      person, by overnight courier service, by facsimile with receipt confirmed
      (followed by delivery of an original via overnight courier service) or by
      registered or certified mail (postage prepaid) to the respective Parties at
      the
      following addresses (or at such other address for a Party as shall be specified
      in a notice given in accordance with this Section
      10.5):

    To
      CW
      Media:  to CanWest and to GSCP

     

    To
      any
      member of Entertainment Group:  to GSCP

     

    To
      any
      member of International Group:  to GSCP

     

    To
      any
      member of Movie Group:  to GSCP and to Edgestone

     

    To
      any
      member of Production Group:  to GSCP and to Edgestone

     

    To
      any
      member of Propinquity Group:  to GSCP and to Edgestone

     

    To
      any
      member of Shelter Group:  to CanWest and to GSCP

     

    To
      any
      member of STV Group:  to CanWest and to GSCP

     

    Section
      10.6.                                Waivers.  The
      failure of any Party to require strict performance by any other Party of any
      provision in this Agreement will not waive or diminish that Party’s right to
      demand strict performance thereafter of that or any other provision
      hereof.

     

    Section
      10.7.                                Amendments.  Subject
      to the terms of Section 10.10 hereof, this
      Agreement may not be modified or amended except by an agreement in writing
      signed by each of the Parties.

     

    Section
      10.8.                                Assignment.  Except
      as otherwise provided for in this Agreement, this Agreement shall not be
      assignable, in whole or in part, by any Party without the prior written consent
      of the other Parties, and any attempt to assign any rights or obligations
      arising under this Agreement without such consent shall be void;
provided, that (i) a Party may assign this Agreement to an Affiliate of
      such Party

     

    
      
        
        

      

      
        81

        
          

        

      

      
        
        

      

    

    and
      (ii)
      a Party may assign this Agreement in connection with a merger transaction in
      which such Party is not the surviving entity or the sale by such Party of all
      or
      substantially all of its Assets; provided, that the surviving entity of
      such merger or the transferee of such Assets shall agree in writing, reasonably
      satisfactory to each of the New Entities, to be bound by the terms of this
      Agreement as if named as a “Party” hereto; and provided further, that any
      such permitted assignment shall not release the assignor from its obligations
      under this Agreement.

     

    Section
      10.9.                                Successors
      and Assigns.  The provisions of this Agreement and the obligations
      and rights hereunder shall be binding upon, inure to the benefit of and be
      enforceable by (and against) the Parties and their respective successors and
      permitted transferees and assigns.

     

    Section
      10.10.                                Certain
      Termination and Amendment Rights.  This Agreement may not be
      terminated except by an agreement in writing signed by each New
      Entity.  Notwithstanding the foregoing, this Agreement may be
      terminated or amended only as among any Parties that remain Affiliates, so
      long
      as such amendment does not adversely affect any Party that is no longer an
      Affiliate, in which case, only with the consent of such Party.

     

    Section
      10.11.                                Payment
      Terms.  (ii)  Except as expressly provided to the
      contrary in this Agreement or in any Ancillary Agreement, any amount to be
      paid
      or reimbursed by any Party (and/or a member of such Party’s Group), on the one
      hand, to any other Party or Parties (and/or a member of such Party’s Group or
      Parties’ Groups), on the other hand, under this Agreement, shall be paid or
      reimbursed at least five (5) days prior to the date such amount is due by the
      payee Party to the applicable third-party creditor with respect to such
      Liability (or if there is no third-party creditor with respect to the relevant
      Liability, within thirty (30) days after presentation of an invoice or written
      demand therefore setting forth, or accompanied by, reasonable documentation
      or
      other reasonable explanation supporting such amount).  To the extent
      that the payor Party does not pay such amounts to the payee Party when such
      payments are due (as described in the preceding sentence above), interest shall
      accrue on such amounts owed at a rate per annum from time to time equal to
      the
      annual rate of interest used by Bank of Nova Scotia as its reference rate of
      interest for Canadian dollar denominated demand loans to commercial customers
      in
      Canada and referred to by such bank as its “prime rate” (the “Prime
      Rate”), calculated for the actual number of days elapsed from the date such
      payment is due to the payee Party.  With respect to amounts received
      by the payee Party for payment to a third party, the payee Party shall, upon
      receipt, deposit such amounts into an interest bearing bank account and the
      interest accruing on such amounts shall be held for the benefit of the payor
      Party and paid to the payor Party following payment by the payee Party to the
      third party of the amounts owed.

     

    (b)           In
      the event of a dispute or disagreement with respect to all or a portion of
      any
      amounts requested by any Party (and/or a member of such Party’s Group) as being
      payable, the payor Party shall be entitled to withhold payment for any disputed
      portion of such amounts; provided, that in the event that following the
      resolution of such dispute it is determined that the payor Party (and/or a
      member of the payor Party’s Group) was responsible for all or a portion of the
      amount withheld by the payor Party, the payor Party shall repay (or cause to
      be
      repaid) such

     

    
      
        
        

      

      
        82

        
          

        

      

      
        
        

      

    

    amounts
      to the payee Party, which amounts shall bear interest at a rate per annum from
      time to time equal to the Prime Rate, calculated for the actual number of days
      elapsed, accrued from the date on which such payment was withheld by the payor
      Party.

     

    Section
      10.12.                                No
      Circumvention.  The Parties agree not to directly or indirectly
      take any actions, act in concert with any Person who takes an action, or cause
      or allow any member of any such Party’s Group to take any actions (including the
      failure to take a reasonable action) such that the resulting effect is to
      materially undermine the effectiveness of any of the provisions of this
      Agreement or any Ancillary Agreement (including adversely affecting the rights
      or ability of any Party to successfully pursue indemnification, contribution
      or
      payment pursuant to Article
      VI).

     

    Section
      10.13.                                Subsidiaries.  Each
      of the Parties shall cause to be performed, and hereby guarantees the
      performance of, all actions, agreements and obligations set forth herein to
      be
      performed by any Subsidiary of such Party or by any entity that becomes a
      Subsidiary of such Party on and after the Closing Date and shall cause such
      Subsidiary to enter into such agreements (including becoming a direct party
      to
      this Agreement where to do so would not violate Law or cause such Subsidiary
      to
      be in default of any other agreements) or take such actions as are necessary
      to
      fulfill the purposes of this Agreement, provided that, for the avoidance
      of doubt, no Party shall be responsible for the performance of any Subsidiary
      which is a member of a different Group than such Party.

     

    Section
      10.14.                                Third-Party
      Beneficiaries.  Except (i) as provided in Article VI relating to Indemnitees and for
      the
      release under Section 6.1 of any Person
      provided therein, (ii) as provided in Section
      9.2 relating to insured persons and (iii) as specifically provided in
      any Ancillary Agreement, this Agreement is solely for the benefit of the Parties
      and should not be deemed to confer upon third parties any remedy, claim,
      liability, reimbursement, claim of action or other right in excess of those
      existing without reference to this Agreement.

     

    Section
      10.15.                                Title
      and Headings.  Titles and headings to sections herein are inserted
      for the convenience of reference only and are not intended to be a part of
      or to
      affect the meaning or interpretation of this Agreement.

     

    Section
      10.16.                                Exhibits
      and Schedules.  The Exhibits and Schedules shall be construed with
      and as an integral part of this Agreement to the same extent as if the same
      had
      been set forth verbatim herein.

     

    Section
      10.17.                                Governing
      Law.  This Agreement shall be governed by and construed in
      accordance with the internal Laws, and not the Laws governing conflicts of
      Laws,
      of the Province of Ontario and the laws of Canada applicable
      therein.

     

    Section
      10.18.                                Consent
      to Jurisdiction.  Subject to the provisions of Article VIII hereof, each of the Parties
      irrevocably submits to the exclusive jurisdiction of courts of the Province
      of
      Ontario, for the

     

    
      
        
        

      

      
        83

        
          

        

      

      
        
        

      

    

    purposes
      of any suit, action or other proceeding to compel arbitration or for provisional
      relief in aid of arbitration in accordance with Article VIII or to prevent irreparable harm,
      and to the non-exclusive jurisdiction of the courts of the Province of Ontario
      for the enforcement of any award issued thereunder.  Each of the
      Parties further agrees that service of any process, summons, notice or document
      by registered mail to such Party’s respective address set forth above shall be
      effective service of process for any action, suit or proceeding in the courts
      of
      the Province of Ontario with respect to any matters to which it has submitted
      to
      jurisdiction in this Section
      10.18.  Each of the Parties irrevocably and unconditionally
      waives any objection to the laying of venue of any action, suit or proceeding
      arising out of this Agreement or the transactions contemplated hereby in the
      courts of the Province of Ontario, and hereby further irrevocably and
      unconditionally waives and agrees not to plead or claim in any such court that
      any such action, suit or proceeding brought in any such court has been brought
      in an inconvenient forum.

     

    Section
      10.19.                                Specific
      Performance.  The Parties agree that irreparable damage would
      occur in the event that the provisions of this Agreement were not performed
      in
      accordance with their specific terms.  Accordingly, it is hereby
      agreed that the Parties shall be entitled to an injunction or injunctions to
      enforce specifically the terms and provisions hereof in any court of Canada,
      the
      United States or any province or state having jurisdiction, this being in
      addition to any other remedy to which they are entitled at law or in
      equity.

     

    Section
      10.20.                                Bulk
      Sales Laws.  In respect of the transactions contemplated by this
      Agreement, none of the Parties shall require any of the other Parties to comply,
      or to assist with compliance, with the requirements of the Bulk Sales
      Act (Ontario) or section 6 of the Retail Sales Tax Act (Ontario)
      or any equivalent or corresponding provisions under any other applicable
      Laws.

     

    Section
      10.21.                                Severability.  In
      the event any one or more of the provisions contained in this Agreement should
      be held invalid, illegal or unenforceable in any respect, the validity, legality
      and enforceability of the remaining provisions contained herein and therein
      shall not in any way be affected or impaired thereby.  The Parties
      shall endeavor in good faith negotiations to replace the invalid, illegal or
      unenforceable provisions with valid provisions, the economic effect of which
      comes as close as possible to that of the invalid, illegal or unenforceable
      provisions.

     

    Section
      10.22.                                Force
      Majeure.  No Party (or any Person acting on its behalf) shall have
      any liability or responsibility for failure to fulfill any obligation (other
      than a payment obligation) under this Agreement or, unless otherwise expressly
      provided therein, any Ancillary Agreement, so long as and to the extent to
      which
      the fulfillment of such obligation is prevented, frustrated, hindered or delayed
      as a consequence of circumstances of Force Majeure.  A Party claiming
      the benefit of this provision shall, as soon as reasonably practicable after
      the
      occurrence of any such event:  (a) notify the other applicable Parties
      of the nature and extent of any such Force Majeure condition and (b) use due
      diligence to remove any such causes and resume performance under this Agreement
      as soon as feasible.

     

    
      
        
        

      

      
        84

        
          

        

      

      
        
        

      

    

    Section
      10.23.                                Interpretation.  The
      Parties have participated jointly in the negotiation and drafting of this
      Agreement.  This Agreement shall be construed without regard to any
      presumption or rule requiring construction or interpretation against the Party
      drafting or causing any instrument to be drafted.

     

    Section
      10.24.                                No
      Duplication; No Double Recovery.  Nothing in this Agreement is
      intended to confer to or impose upon any Party a duplicative right, entitlement,
      obligation or recovery with respect to any matter arising out of the same facts
      and circumstances.

     

    
      
        
        

      

      
        85

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed,
      both below and on Schedule 1, as of the day and year first above
      written.

     

    

     

    ENTERTAINMENT
      SUBCO AB, INC.

    

     

    By:   "Gerry
      Cardinale"

      
        

      

    

    Name: 
      Gerry Cardinale

    Title: 
      Managing Director

     

     

    ALLIANCE
      DISTRIBUTION HOLDINGS S.ÀR.L

     

    

     

    By     "John
      Bowman"

      
        

      

    

    Name: 
      John Bowman

    Title: 
      Managing Director

     

     

     

    4414608
      CANADA INC.

    
 

     

    By: 
      "Gerry Cardinale"          

      
        
Name: 
        Gerry Cardinale

    

    Title: 
      Managiing Director

     

    3217920
      NOVA SCOTIA COMPANY

     

    

     

    By: 
      "Sumit Raipal"        

      
        
          

        

      

    

    Name: 
      Sumit Rajpal

    Title: 
      Vice President

     

     

    4437497
      CANADA INC.

     

     

    By:    "Sumit
      Raipal"        

      
        
          

        

      

    

    Name: 
      Sumit Rajpal

    Title: 
      Vice President

     

    
       

    

    
 

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

     

    

                                          
      4437641 CANADA INC.

     

    By:   "Gerry
      Cardinale"          

      
        

      

    

    Name: 
      Gerry Cardinale

    Title: 
      Managing Director

     

     

    CW
      MEDIA
      HOLDINGS INC.

    
 

     

    By: 
      "Riva Richard"          

      
        

      

    

    Name: 
      Riva Richard

    Title: 
      Secretary

                                    

     

                                                                                                           
      By:  "Richard
      Leipsic"           

    
      
        

      

      Name: 
        Richard Leipsic

      Title: 
        Vice President

    

     

    

     

    

                                    ALLIANCE
      ATLANTIS
      EQUICAP CORPORATION

    

     

    By: 
      "Karen Beckles"          

      
        

      

    

    Name: 
      Karen Beckles

    Title: 
      Vice President - Finance

     

     

    4414641
      CANADA INC.

     

    
       

      By: 
        "Riva Richard"          

      
        

      

      Name: 
        Riva Richard

      Title: 
        Secretary

                                      

       

                                                                                                             
        By:  "Richard
        Leipsic"           

      
        
          

        

        Name: 
          Richard Leipsic

        Title: 
          Vice President

      

    

    
 

     

    
       

    

    CW
      MEDIA
      INC.

     

    
      By: 
        "Riva Richard"          

      
        

      

      Name: 
        Riva Richard

      Title: 
        Secretary

                                      

       

                                                                                                             
        By:  "Richard
        Leipsic"           

      
        
          

        

        Name: 
          Richard Leipsic

        Title: 
          Vice President

      

     

    

     

    

     

     

    
      
        
        

      

      
        87privizationagreement.htm

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

              

                  EXECUTION
            COPY      
      

                  
      
    

      

    

    

     

    CANWEST
      MEDIAWORKS INC.

     

    -
      and
      -

     

    CWMW
      TRUST

     

    -
      and
      -

     

    CANWEST
      MEDIAWORKS (CANADA) INC.

     

    -
      and
      -

     

    CANWEST
      MEDIAWORKS LIMITED PARTNERSHIP

     

    -
      and
–

     

    CANWEST
      MEDIAWORKS INCOME FUND

     

    
      

       

      

       

      

    

     

    PRIVATIZATION
      AGREEMENT

     

    May
      25, 2007

     

    
      

       

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

                                                                                              Page

      
        	
                ARTICLE
                  1

              	 	 
	
                    INTERPRETATION

              	
                 

              	        2
	
                    1.1

              	
                Definitions

              	
                        2

              
	
                    1.2

              	
                Currency

              	
                        7

              
	
                    1.3

              	
                Sections
                  and Headings

              	
                        8

              
	
                    1.4

              	
                Interpretation

              	
                        8

              
	
                    1.5

              	
                Entire
                  Agreement

              	
                        8

              
	
                    1.6

              	
                Time
                  of Essence

              	
                        8

              
	
                    1.7

              	
                Applicable
                  Law

              	
                        8

              
	
                    1.8

              	
                Severability

              	
                        8

              
	
                    1.9

              	
                Successors
                  and Assigns

              	
                        9

              
	
                    1.10

              	
                Amendment
                  and Waivers

              	
                        9

              
	
                    1.11

              	
                No
                  Strict Construction

              	
                        9

              
	
                    1.12

              	
                Statutory
                  References

              	
                        9

              
	
                    1.13

              	
                Business
                  Day

              	
                        9

              
	
                    1.14

              	
                Schedules

              	
                        9

              
	
                ARTICLE
                  2

              	 	 
	
                    THE
                  TRANSACTION

              	
                        

              	        9
	
                    2.1

              	
                Transaction
                  Steps

              	
                        9

              
	
                    2.2

              	
                Allocation
                  of Income and Capital Gains to Unitholders

              	
                        11

              
	
                    2.3

              	
                Fiduciary
                  Duty

              	
                        12

              
	
                    2.4

              	
                Information
                  Circular; Meeting

              	
                        12

              
	
                    2.5

              	
                Approval
                  Under Securityholders’ Agreement

              	
                        13

              
	
                    2.6

              	
                Closing

              	
                        13

              
	
                ARTICLE
                  3

              	 	 
	
                    REPRESENTATIONS
                  AND WARRANTIES

              	
                 

              	        14
	
                    3.1

              	
                Representations
                  and Warranties of the Parties

              	
                        14

              
	
                    3.2

              	
                Representations
                  and Warranties of Fund

              	
                        14

              
	
                    3.3

              	
                Representations
                  and Warranties of Limited Partnership

              	
                        15

              
	
                    3.4

              	
                Expiry
                  of Representations and Warranties

              	
                        15

              

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                ARTICLE
                  4

              	 	 
	
                    COVENANTS

              	
                 

              	        15 
	
                    4.1

              	
                Ordinary
                  Course of Business

              	
                        15

              
	
                    4.2

              	
                Ordinary
                  Course Covenants of Partnership

              	
                        16

              
	
                    4.3

              	
                Cooperation
                  of Fund and Trust

              	
                        16

              
	
                    4.4

              	
                Financing

              	
                        17

              
	
                    4.5

              	
                Trustees’,
                  Directors’ and Officers’ Insurance and Indemnities

              	
                        17

              
	
                    4.6

              	
                Winding-Up
                  and Termination

              	
                        17

              
	
                    4.7

              	
                Satisfaction
                  of Conditions

              	
                        17

              
	
                    4.8

              	
                Consultation

              	
                        17

              
	
                    4.9

              	
                Amendment
                  of Performance Unit Plan

              	
                        17

              
	
                ARTICLE
                  5

              	 	 
	
                    CLOSING
                  CONDITIONS

              	
                 

              	        18 
	
                    5.1

              	
                Mutual
                  Conditions Precedent

              	
                        18

              
	
                    5.2

              	
                Conditions
                  in Favour of CanWest, General Partner and Limited
                  Partnership

              	
                        18

              
	
                    5.3

              	
                Conditions
                  in Favour of Fund and Trust

              	
                        19

              
	
                ARTICLE
                  6

              	 	 
	
                    TERMINATION

              	
                 

              	        19
	
                    6.1

              	
                Termination

              	
                        19

              
	
                    6.2

              	
                Effect
                  of Termination

              	
                        20

              
	
                    6.3

              	
                Expenses

              	
                        21

              
	
                    6.4

              	
                Remedies

              	
                        24

              
	
                ARTICLE
                  7

              	 	 
	
                   MISCELLANEOUS

              	
                 

              	        22
	
                    7.1

              	
                Notices

              	
                        22

              
	
                    7.2

              	
                Further
                  Assurances

              	
                        23

              
	
                    7.3

              	
                Limited
                  Liability

              	
                        23

              
	
                    7.4

              	
                Counterparts

              	
                        24

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    PRIVATIZATION
      AGREEMENT

     

    THIS
      AGREEMENT is made as of the 25th
      day of May,
      2007

     

    BETWEEN:

     

    CANWEST
      MEDIAWORKS INC., a corporation incorporated under the laws of
      Manitoba

     

    (“CanWest”)

     

    -
      and
–

     

    CWMW
      TRUST, a trust created under the laws of Ontario

     

    (“Trust”)

     

    -
      and
      -

     

    CANWEST
      MEDIAWORKS (CANADA) INC., a corporation incorporated under the federal
      laws of Canada

     

    (“General
      Partner”)

     

    -
      and
      -

     

    CANWEST
      MEDIAWORKS LIMITED PARTNERSHIP, a limited partnership created under the
      laws of Ontario by its general partner, CanWest MediaWorks (Canada)
      Inc.

     

    (“Limited
      Partnership”)

     

    -
      and
–

     

    CANWEST
      MEDIAWORKS INCOME FUND, a trust created under the laws of
      Ontario

     

    (“Fund”)

     

    RECITALS:

     

    
      	
              A.

            	
              CanWest
                and Trust are the limited partners of Limited
                Partnership.

            

    

     

    
      	
              B.

            	
              CanWest
                owns 158,262,703 Class B LP Units.

            

    

     

    
      	
              C.

            	
              Fund
                indirectly owns, through Trust, 55,000,000 Class A LP
                Units.

            

    

     

    
      	
              D.

            	
              General
                Partner is the general partner of Limited
                Partnership.

            

    

     

    
      	
              E.

            	
              CanWest
                owns 158,262,703 GP Shares and 914 Preferred Shares of General
                Partner.

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
              F.

            	
              Fund
                owns 55,000,000 GP Shares and no Preferred Shares of General
                Partner.

            

    

     

    
      	
              G.

            	
              Subject
                to the terms and conditions of this Agreement: (i) Limited
                Partnership intends to purchase for cancellation all of the Class
                A LP
                Units; (ii) General Partner intends to purchase for cancellation all
                of the GP Shares held by Fund; (iii) Trust intends to redeem all of
                the Trust Units and to purchase for cancellation all of the outstanding
                aggregate principal amount of Trust Notes plus accrued and unpaid
                interest; and (iv) Fund intends to redeem all of the
                Units.

            

    

     

    
      	
              H.

            	
              Mr.
                Richard Leipsic, a trustee of Fund appointed by CanWest in accordance
                with
                the terms of the Fund Declaration of Trust, declared his conflict
                of
                interest in respect of the proposed transaction as the Senior Vice
                President and General Counsel of CanWest and did not participate
                in any
                deliberations of the board of trustees of Fund (the trustees of Fund
                other
                than Mr. Leipsic being collectively referred to as the “Fund
                Board”) nor vote in respect of any resolution relating to the
                proposed transaction.

            

    

     

    
      	
              I.

            	
              The
                Fund Board has determined that as of the date hereof the Transaction
                is
                fair to Unitholders and is in the best interests of Fund and Unitholders
                and to support the Transaction and has resolved to recommend that
                Unitholders vote in favour of the Special Resolution approving the
                Transaction at the Meeting.

            

    

     

    THEREFORE
      the Parties agree as follows:

     

    ARTICLE
      1

     

    INTERPRETATION

     

    1.1            Definitions

     

    In
      this
      Agreement:

     

    “Account”
      has the meaning ascribed thereto in the Performance Unit Plan;

     

    “Agreement”
      means this agreement, including all schedules hereto, and all amendments or
      restatements as permitted hereunder;

     

    “Business
      Day” means a day, other than a Saturday or Sunday, on which the
      principal commercial banks in the Cities of Toronto and Winnipeg are open for
      business during normal banking hours;

     

    “CanWest
      Global” means CanWest Global Communications Corp., a corporation
      established under the laws of Canada;

     

    “CanWest
      MediaWorks Publications” means CanWest MediaWorks Publications Inc., a
      corporation established under the laws of Canada;

     

    “Class
      A LP Units” means the Class A units of Limited
      Partnership;

     

    “Class
      B LP Units” means the Class B units of Limited
      Partnership;

     

    “Closing”
      has the meaning ascribed thereto in Section 2.6;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    “Closing
      Date” has the meaning ascribed thereto in Section 2.6;

     

    “Commitment
      Letter” means the commitment letter dated as of May 25, 2007
      between The Bank of Nova Scotia and Limited Partnership providing for the
      Short-Term Credit Facility and the other credit facilities described
      therein;

     

    “Effective
      Time” means 10:00 a.m. (Toronto time) on the Closing Date or such other
      time as may be agreed to in writing by the Parties;

     

    “Excess
      Distribution Amount” means the amount of any distribution declared on a
      Unit in a month in excess of the Monthly Distribution;

     

    “Expense
      Distribution” means the distribution to be made by Limited Partnership
      to Trust in accordance with Section 5.3 and Section 5.4 of the Limited
      Partnership Agreement and Section 6.3 of this
      Agreement as contemplated in Section 2.1(a)(v);

     

    “Fairness
      Opinion” has the meaning ascribed thereto in Section 3.2(a);

     

    “Final
      Monthly Distribution” has the meaning ascribed thereto in Section 2.1(a)(v);

     

    “Final
      Redemption Date” means July 12, 2007 or such other date agreed to
      by the Parties in writing;

     

    “Fund
      Board” has the meaning ascribed thereto in the recitals;

     

    “Fund
      Declaration of Trust” means the amended and restated declaration of
      trust of Fund made as of the 13th day of
      October,
      2005, as that declaration of trust may be supplemented, amended, restated or
      replaced from time to time in accordance with its terms;

     

    “Fund
      Entity” has the meaning ascribed thereto in the Performance Unit
      Plan;

     

    “Fund
      Material Documents” means collectively: (a) the Fund Declaration of
      Trust; (b) the Trust Declaration of Trust; (c) the Trust Note Indenture; (c)
      the
      Securityholders’ Agreement; (d) the Liquidity and Exchange Agreement; (e) the
      Limited Partnership Agreement; and (f) the Performance Unit Plan;

     

    “Governmental
      Entity” means any: (a) multinational, federal, provincial, state,
      regional, municipal, local or other government, governmental or public
      department, central bank, court, tribunal, arbitral body, commission, board,
      bureau or agency, domestic or foreign; (b) self-regulatory organization, stock
      exchange or securities market including without limitation the TSX; (c) any
      subdivision, agent, commission, board, or authority of any of the foregoing;
      or
      (d)  any quasi-governmental or private body exercising any regulatory,
      expropriation or taxing authority under or for the account of any of the
      foregoing;

     

    “GP
      Shares” means the common shares of General Partner;

     

    “Indemnified
      Persons” has the meaning ascribed thereto in Section 4.5(b);

     

    “Indemnity
      Agreements” have the meaning ascribed thereto in Section 4.5(b);

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    “Independent
      Committee” means the special committee of independent trustees
      of  Fund established to consider the proposal by CanWest in connection
      with the Transaction, consisting of Wayne M.E. McLeod (Chair), Sheelagh D.
      Whittaker and The Hon. Peter M. Liba;

     

    “Information
      Circular” means the notice of Meeting and the
      accompanying management information circular to be sent to Unitholders in
      connection with the Meeting, as the same may be amended, supplemented or
      otherwise modified in accordance with this Agreement;

     

    “Law”
      or “Laws” means all codes and conventions, laws, by-laws,
      statutes, rules, regulations, principles of law and equity, orders, rulings,
      ordinances, judgments, injunctions, determinations, awards, decrees, regulatory
      policies or other requirements of a Governmental Entity and the terms and
      conditions of any permit, and the term “applicable” with
      respect to such Laws and in a context that refers to one or more Parties, means
      such Laws as are applicable to such Party or its business, undertaking, property
      or securities and emanate from a person having jurisdiction over the Party
      or
      Parties or its or their business, undertaking, property or
      securities;

     

    “Limited
      Partnership Agreement” means the limited partnership agreement dated
      September 7, 2005 pursuant to which Limited Partnership was established, as
      amended and restated by an amended and restated limited partnership agreement
      dated October 13, 2005, as the same may be supplemented, amended, restated
      or
      replaced from time to time in accordance with its terms;

     

    “Limited
      Partnership Existing Credit Facilities” means the existing $825 million
      non-revolving term credit facility and the $175 million revolving term credit
      facility of Limited Partnership;

     

    “Liquidity
      and Exchange Agreement” means the liquidity and exchange agreement
      among Fund, Trust, General Partner, Limited Partnership and CanWest dated
      October 13, 2005, as the same may be supplemented, amended, restated or replaced
      from time to time in accordance with its terms;

     

    “LP
      Unit Consideration” means an amount equal to $9.00 multiplied by the
      number of Units outstanding at the Effective Time;

     

    “Material
      Adverse Effect” means any change, effect, event, development,
      occurrence or state of facts: (a) that is, or would reasonably be expected
      to
      be, material and adverse to the business, operations, results of operations,
      liabilities (including contingent liabilities), obligations (whether absolute,
      accrued, conditional or otherwise) capital, properties, assets or financial
      condition of Partnership; (b) that would materially impair Fund or Trust’s
      ability to perform their respective obligations under this Agreement in any
      material respect; (c) that would, or would reasonably be expected to prevent
      or
      materially impair or impede the ability of Fund to qualify as a mutual fund
      trust for purposes of the Tax Act or as a unit trust under paragraph 108(2)(a)
      of the Tax Act; or (d) that would, or would reasonably be expected to cause
      Fund
      or Trust to become subject to tax under Part X11.2 of the Tax Act; other than
      any change, effect, event, development, occurrence or state of facts relating
      to: (i) any change in general economic conditions in Canada or any

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    change
      in
      Canadian securities, financial, banking or currency exchange markets; (ii)
      any
      change in the trading volume or market price of the Units primarily resulting
      from a change, effect, event, development or occurrence excluded from the
      definition of Material Adverse Effect under clauses (i), (iii), (iv), (v) or
      (vi) hereof; (iii) any change or development resulting from any act of terrorism
      or any outbreak of hostilities or war (or any escalation or worsening thereof)
      or any natural disaster; (iv) any change or development affecting the Canadian
      newspaper or related industries generally or the specific industries in which
      Partnership operates; (v) the announcement of the entering into of this
      Agreement or the Transaction; or (vi) any change, effect, event, development,
      occurrence or state of facts initiated by or at the direction of CanWest or
      CanWest Global, or arising as a result of the negligence or misconduct of
      CanWest or CanWest Global or the failure by CanWest or CanWest Global to take
      any action that it is required to take pursuant to any agreement between CanWest
      and CanWest Global, on the one hand, and Limited Partnership, Trust or Fund
      on
      the other hand; provided, however, that any such change referred to in clauses
      (i), (iii) or (iv) above does not primarily relate only to (or have the effect
      of primarily relating only to) Partnership or disproportionately adversely
      affect Partnership compared to other companies or other entities operating
      in
      Canada in the industries in which Partnership operates;

     

    “material
      fact” has the meaning ascribed thereto under the Securities
      Act;

     

    “Meeting”
      means the special meeting of the Unitholders, including any adjournment or
      postponement thereof, to be called and held to consider the
      Transaction;

     

    “Misrepresentation”
      has the meaning ascribed thereto under the Securities Act;

     

    “Monthly
      Distribution” means the regular monthly distribution to Unitholders not
      to exceed $0.0771 per Unit per month;

     

    “Notice”
      has the meaning ascribed thereto in Section 7.1;

     

    “Outside
      Date” means July 31, 2007 or such other date as agreed to in
      writing between the Parties;

     

    “OSC
      Rule 61-501” means Ontario Securities Commission Rule 61-501 –
Insider Bids, Issuer Bids, Business Combination and Related Party
      Transactions;

     

    “Participant”
      has the meaning ascribed thereto in the Performance Unit Plan;

     

    “Partnership”
      means Limited Partnership, its general partner, General Partner, and its
      subsidiaries, including, for greater certainty, CanWest MediaWorks Publications
      and any subsidiaries of CanWest MediaWorks Publications;

     

    “Party”
      means a signatory to this Agreement;

     

    “Performance
      Modifier” has the meaning ascribed thereto in the Performance Unit
      Plan;

     

    “Performance
      Unit Plan” means Fund’s Performance Unit Plan effective October 11,
      2005, as amended from time to time in accordance with its terms;

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Performance
      Units” means Performance Units granted under the Performance Unit
      Plan;

     

    “Person” includes
      any individual, firm, partnership, limited partnership, limited liability
      partnership, joint venture, venture capital fund, limited liability company,
      unlimited liability company, association, trust, trustee, heir, executor,
      administrator, legal personal representative, estate, group, body corporate,
      corporation, unincorporated association or organization, Governmental Entity,
      syndicate or other entity, whether or not having legal status;

     

    “Post-Closing
      Fund Trustee” has the meaning ascribed thereto in Section 4.6(a);

     

    “Preferred
      Shares” means the preferred shares of General Partner;

     

    “Redemption
      Units” has the meaning ascribed thereto in the Performance Unit
      Plan;

     

    “Regulation
      Q-27” means the Autorité des marchés financiers (Quebec) Regulation 27
– Respecting Protection of Minority Securityholders in the Course
      of Certain
      Transactions;

     

    “Securities
      Act” means the Securities Act (Ontario);

     

    “Securities
      Regulatory Authorities” means the TSX and the appropriate securities
      commission or similar regulatory authority in each of the provinces and
      territories of Canada;

     

    “Securityholders’
      Agreement” means the securityholders’ agreement between Fund, Trust,
      General Partner, Limited Partnership and CanWest dated October 13, 2005, as
      the
      same may be supplemented, amended, restated, or replaced from time to time
      in
      accordance with its terms;

     

    “Short-Term
      Credit Facility” means the short-term credit facility in the amount of
      up to $1,300,000,000 contemplated by the Commitment Letter;

     

    “SIFT
      Proposals” means the changes to the taxation of publicly traded trusts
      announced on October 31, 2006 by the Minister of Finance and incorporated in
      draft legislation dated December 21, 2006 and Notice of Ways and Means Motion
      dated March 27, 2007;

     

    “Special
      Resolution” means a Special Resolution (as defined in the Fund
      Declaration of Trust) of the Unitholders approving the Transaction, such
      resolution to be substantially in the form attached as Schedule A to this
      Agreement, with such modifications and amendments as may be satisfactory to
      Limited Partnership and Fund, acting reasonably;

     

    “Stub
      Period Distribution” means if the Closing Date occurs on a date that is
      on or following the tenth Business Day of any month, an amount per Unit equal
      to
      the product of $0.0771 multiplied by a fraction, the numerator of which is
      the
      number of days that have elapsed in the month in which the Closing Date occurs,
      including the first day of the month and the Closing Date, and the denominator
      of which is the total number of days in the month in which the Closing Date
      occurs;

     

    “Tax
      Act” means the Income Tax Act (Canada);

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Total
      Stub Period Distribution” has the meaning ascribed thereto in
      Section 2.1(a)(v);

     

    “Transaction”
      means the transactions contemplated by this Agreement, including those described
      in Section 2.1;

     

    “Transaction
      Consideration” means an amount equal to the Unit
      Redemption Price multiplied by the number of Units outstanding at the Effective
      Time;

     

    “Trust
      Declaration of Trust” means the amended and restated declaration of
      trust of Trust made as of the 13th day of
      October,
      2005 as that declaration of trust may be supplemented, amended, restated or
      replaced from time to time in accordance with its terms;

     

    “Trust
      Note Consideration” has the meaning ascribed thereto in Section 2.1(a)(viii);

     

    “Trust
      Note Indenture” means the indenture between Trust, as issuer, and
      Computershare Trust Company of Canada, as indenture trustee, dated October
      13,
      2005, which governs the Trust Notes as that indenture may be supplemented,
      amended, restated or replaced from time to time in accordance with its
      terms;

     

    “Trust
      Notes” means the issued and outstanding Series 1 Notes of
      Trust;

     

    “Trust
      Units” means the issued and outstanding trust units of
      Trust;

     

    “TSX”
      means the Toronto Stock Exchange;

     

    “Unitholder
      Approval” means: (a) approval of the Special Resolution by 662⁄3% of
      the votes cast by the Unitholders present in person or represented by proxy
      at
      the Meeting in accordance with the Fund Declaration of Trust; and
      (b) minority approval of the Special Resolution within the meaning of OSC
      Rule 61-501 and Regulation Q-27;

     

    “Unitholders”
      means the registered or beneficial holders of the issued and outstanding Units
      prior to the redemption of Units contemplated in Section 2.1(b)(iii), as the context requires;

     

    “Unit
      Redemption Price” means an amount per Unit equal to the sum of: (a)
      $9.00; and (b) the Stub Period Distribution, if any;

     

    “Units”
      means the issued and outstanding trust units of Fund; and

     

    “Valuation”
      has the meaning ascribed thereto in Section 3.2(b).

     

    
      	
              1.2

            	
              Currency

            

    

     

    Unless
      otherwise indicated, all dollar amounts in this Agreement are expressed in
      Canadian funds.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    1.3           Sections
      and Headings

     

    The
      division of this Agreement into Articles and Sections, the insertion of headings
      and the inclusion of a table of contents are for reference purposes only and
      shall not affect the interpretation of this Agreement.  Unless otherwise
      indicated, any reference in this Agreement to an Article, a Section or a
      Schedule refers to the specified Article or Section of, or Schedule to, this
      Agreement.

     

    
      	
              1.4

            	
              Interpretation

            

    

     

    In
      this
      Agreement, words importing the singular number only shall include the plural
      and
vice versa and words importing gender shall include all genders.
 Wherever the word “include” or any grammatical variation appears in this
      Agreement, it shall be deemed to be followed by the phrase “without
      limitation”.

     

    
      	
              1.5

            	
              Entire
                Agreement

            

    

     

    This
      Agreement, together with the documents to be delivered pursuant to this
      Agreement, constitutes the entire agreement between the Parties concerning
      the
      Transaction and supersedes all prior agreements, understandings, negotiations
      and discussions, whether written or oral.  There are no conditions,
      covenants, agreements, representations, warranties, indemnities or other
      provisions, express or implied, collateral, statutory or otherwise, relating
      to
      the subject matter of this Agreement except as provided in this
      Agreement.

     

    
      	
              1.6

            	
              Time
                of Essence

            

    

     

    Time
      shall be of the essence of this Agreement.

     

    
      	
              1.7

            	
              Applicable
                Law

            

    

     

    This
      Agreement shall be construed, interpreted and enforced in accordance with,
      and
      the respective rights and obligations of the Parties shall be governed by,
      the
      Laws of the Province of Ontario and the federal Laws of Canada applicable in
      that province, and each Party unconditionally submits to the non-exclusive
      jurisdiction of the courts of the Province of Ontario.

     

    
      	
              1.8

            	
              Severability

            

    

     

    If
      any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by any rule or Law, or public policy, all other conditions and
      provisions of this Agreement shall nevertheless remain in full force and effect
      so long as the economic or legal substance of the transactions contemplated
      hereby is not affected in any manner materially adverse to any Party. Upon
      such
      determination that any term or other provision is invalid, illegal or incapable
      of being enforced, the Parties hereto shall negotiate in good faith to modify
      this Agreement so as to effect the original intent of the Parties as closely
      as
      possible in an acceptable manner to the end that the transactions contemplated
      hereby are fulfilled to the fullest extent possible.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    1.9           Successors
      and Assigns

     

    This
      Agreement shall enure to the benefit of and shall be binding on, and enforceable
      by, the Parties and, where the context so permits, their respective successors
      and permitted assigns.  No Party may assign any of its rights or
      obligations hereunder without the prior written consent of the other
      Parties.

     

    
      	
              1.10

            	
              Amendment
                and Waivers

            

    

     

    No
      amendment or waiver of any provision of this Agreement shall be binding on
      any
      Party unless consented to in writing by that Party.  No waiver of any
      provision of this Agreement shall constitute a waiver of any other provision,
      nor shall any waiver constitute a continuing waiver unless otherwise expressly
      provided.

     

    
      	
              1.11

            	
              No
                Strict Construction

            

    

     

    The
      language used in this Agreement is the language chosen by the Parties to express
      their mutual intent, and no rule of strict construction shall be applied against
      any Party.

     

    
      	
              1.12

            	
              Statutory
                References

            

    

     

    A
      reference to a statute includes all rules and regulations made pursuant to
      such
      statute and, unless otherwise specified, the provisions of any statute or
      regulation or rule which amends, replaces, supplements or supersedes any such
      statute or any such regulation or rule.

     

    
      	
              1.13

            	
              Business
                Day

            

    

     

    Any
      action or payment required or permitted to be taken or made hereunder on a
      day
      that is not a Business Day may be taken or made on the next following Business
      Day.

     

    
      	
              1.14

            	
              Schedules

            

    

     

    The
      following Schedules are attached to and form part of this
      Agreement:

     

    Schedule
      A                                -           Special
      Resolution

     

    
      	
               

            	
              Schedule
                B

            	
              -

            	
              Form
                of Indemnity Agreement

            

    

     

    

    ARTICLE
      2

     

    THE
      TRANSACTION

     

    
      	
              2.1

            	
              Transaction
                Steps

            

    

     

    
      	
               

            	
              (a)

            	
              At
                the Effective Time the following transaction steps shall occur and
                be
                deemed to occur in the following order, and for greater certainty
                none of
                the following steps shall be deemed to occur unless all such steps
                shall
                have occurred and been completed:

            

    

     

    
      	
               

            	
              (i)

            	
              The
                Liquidity and Exchange Agreement shall be
                terminated.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (ii)

            	
              The
                Securityholders’ Agreement shall be
                terminated.

            

    

     

    
      	
               

            	
              (iii)

            	
              The
                Limited Partnership Agreement shall be amended to provide for the
                income
                allocation described in Section 2.2.

            

    

     

    
      	
               

            	
              (iv)

            	
              Any
                other amendments to the Fund Material Documents or other agreements
                as
                contemplated by Section 4.3 shall be
                made.

            

    

     

    
      	
               

            	
              (v)

            	
              Limited
                Partnership shall distribute in cash to Trust: (A) an amount equal
                to the
                Monthly Distribution, if any, for the month ending prior to the Closing
                Date, if such Monthly Distribution remains unpaid as of the Closing
                Date,
                multiplied by the number of Units outstanding on the record date
                for such
                Monthly Distribution (the “Final Monthly Distribution”);
                (B) the Expense Distribution; and (C) the Stub Period Distribution,
                if
                any, multiplied by the number of Units outstanding at the Effective
                Time
                (the “Total Stub Period
                Distribution”).

            

    

     

    
      	
               

            	
              (vi)

            	
              Limited
                Partnership shall purchase for cancellation all of the issued and
                outstanding Class A LP Units and Class B LP Units, if
                any, held by Trust for an aggregate purchase price
                in cash equal to the LP Unit Consideration.  For greater
                certainty, following such purchase, Trust shall cease to have any
                further
                right to receive any declared and unpaid distributions on the Class
                A LP
                Units or Class B LP Units.

            

    

     

    
      	
               

            	
              (vii)

            	
              General
                Partner shall purchase for cancellation all of the issued and outstanding
                GP Shares held by Fund for an aggregate purchase price in cash of
                $30.00.

            

    

     

    
      	
               

            	
              (viii)

            	
              Trust
                shall pay a cash distribution to Fund equal to the amount, if any,
                by
                which the aggregate of the: (A) Final Monthly Distribution (if any);
                (B)
                Expense Distribution; and (C) Total Stub Period Distribution (if
                any)
                exceeds the interest payable under the Trust Notes for the: (x) month
                ending prior to the Closing Date; and (y) month in which the Closing
                Date
                occurs.

            

    

     

    
      	
               

            	
              (ix)

            	
              Trust
                shall purchase for cancellation all of the aggregate principal amount
                of
                the Trust Notes held by Fund for an aggregate redemption price in
                cash
                equal to the then outstanding aggregate principal amount of Trust
                Notes,
                plus accrued and unpaid interest to the Closing Date (the “Trust
                Note Consideration”).

            

    

     

    
      	
               

            	
              (x)

            	
              Trust
                shall redeem and cancel all of the issued and outstanding Trust Units
                for
                an aggregate redemption price in cash equal to the amount obtained
                when
                the Trust Note Consideration is subtracted from the amount by which
                the
                aggregate of: (A) the LP Unit Consideration; and (B) the distributions
                received by Trust from Limited Partnership pursuant to Section 2.1(a)(v) exceeds (C) the distributions made
                by
                Trust to Fund pursuant to Section 2.1(a)(viii).

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (b)

            	
              On
                the Final Redemption Date the following transaction steps shall occur
                and
                be deemed to occur in the following order, and for greater certainty
                none
                of the following steps shall be deemed to occur unless all such steps
                shall have occurred and been
                completed:

            

    

     

    
      	
               

            	
              (i)

            	
              Fund
                shall pay the Final Monthly Distribution, if any, if such Final Monthly
                Distribution remains unpaid as of the Final Redemption
                Date.

            

    

     

    
      	
               

            	
              (ii)

            	
              The
                Performance Unit Plan shall be amended as contemplated by Section 4.9, Fund Board shall terminate the Performance
                Unit Plan, all Performance Units in a Participant’s Account shall
                immediately vest and each Participant shall receive a cash payment
                from
                the Participant’s employer or Fund Entity to whom the Participant provides
                services in an amount per Performance Unit held by such Participant
                equal
                to the Unit Redemption Price multiplied by the applicable Performance
                Modifier in respect of such Performance Unit, calculated in accordance
                with the terms of the Performance Unit Plan as amended pursuant to
                Section 4.9.

            

    

     

    
      	
               

            	
              (iii)

            	
              Fund
                shall redeem and cancel all of the issued and outstanding Units at
                a price
                in cash per Unit equal to the Unit Redemption Price. For greater
                certainty, Fund may deduct or withhold from the foregoing all amounts
                required by Law to be deducted or withheld from such payment, provided
                that any such amounts so deducted or withheld are remitted as required
                by
                Law.

            

    

     

    
      	
              2.2

            	
              Allocation
                of Income and Capital Gains to
                Unitholders

            

    

     

    
      	
               

            	
              (a)

            	
              The
                income of Limited Partnership for Limited Partnership’s taxation year
                ending December 31, 2007 for purposes of the Tax Act shall be allocated
                to
                Trust in an amount equal to the aggregate amount of all cash distributions
                paid by Limited Partnership to Trust with respect to that taxation
                year
                and on or prior to the Closing Date (which distributions, for greater
                certainty, shall include the Expense Distribution but shall not include
                any portion of the amount paid by Limited Partnership on the purchase
                for
                cancellation of the Class A LP Units and Class B LP Units, if any,
                held by
                Trust).

            

    

     

    
      	
               

            	
              (b)

            	
              In
                connection with the Transaction, Trust and Fund shall make such
                designations and filings for income tax purposes as may be necessary
                to be
                filed or designated on the part of Trust and Fund such that any income
                and
                capital gains realized by Trust and Fund as a result of the Transaction
                shall be allocated to Unitholders pro rata based on the number of
                Units
                held by them at the Effective Time and such that Trust and Fund have
                no
                taxable income as a result of the deductions permitted to each of
                Fund and
                Trust by subsection 104(6) of the Tax Act in respect of such
                designations.

            

    

     

    
      	
               

            	
              (c)

            	
              Other
                than as part of the Transaction, the Parties shall not take any steps
                that
                would result in the income tax consequences to a Unitholder whose
                Units
                are redeemed as part of the Transaction being adversely affected
                by any
                transactions or events involving Trust or Fund that occur subsequent
                to
                such redemption.

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    2.3            Fiduciary
      Duty

     

    Nothing
      contained herein shall be construed to require the Fund Board to take or refrain
      from taking any action that would be inconsistent with its obligation to
      properly discharge its fiduciary duties under applicable Laws and/or the Fund
      Declaration Trust, and the Fund Board may change its recommendation consistent
      with the proper discharge of its fiduciary duties, provided that Fund shall
      have
      notified Limited Partnership regarding its intention to do any of the foregoing
      prior to taking any steps in connection therewith.  Notwithstanding
      the foregoing, nothing in this Section 2.3
      shall limit in any way the obligation of Fund to convene and hold the Meeting
      in
      accordance with Section 2.4 of this Agreement
      unless this Agreement is terminated in accordance with Article 6.

     

    
      	
              2.4

            	
              Information
                Circular; Meeting

            

    

     

    
      	
               

            	
              (a)

            	
              As
                promptly as reasonably practicable after the execution and delivery
                of
                this Agreement, Fund shall in consultation with Limited Partnership:
                (i) establish a record date for, duly call, give notice of, convene
                and hold the Meeting, provided that subject to Section 2.4(f), the
                Meeting
                shall be held no later than July 4, 2007; and (ii) prepare the
                Information Circular, together with any other documents required
                by the
                Fund Declaration of Trust and applicable Laws in connection with
                the
                Meeting.  The Information Circular shall include (among other
                things) the recommendation of the Fund Board that Unitholders vote
                in
                favour of the Special Resolution, the Valuation and the Fairness
                Opinion.  Limited Partnership shall be afforded a reasonable
                opportunity to review the Information Circular and such other documents
                and amendments thereto and Fund will consider (acting reasonably)
                all
                comments, provided that any statements in the Information Circular
                and
                such other documents and amendments relating solely to CanWest Global,
                CanWest, General Partner or Limited Partnership shall be in a form
                satisfactory to Limited Partnership and its advisors acting reasonably
                and
                provided further that the Special Resolution included in the Information
                Circular or any modifications or amendments thereto shall be in the
                form
                attached as Schedule A to this Agreement unless the consent in writing
                of
                Limited Partnership, acting reasonably, to any modification or amendment
                to the Special Resolution shall have been obtained.  Fund will
                file the Information Circular and any other documentation required
                to be
                filed under applicable Laws with Securities Regulatory Authorities
                in all
                jurisdictions where the Information Circular is required to be filed
                by
                Fund and mail or cause to be mailed the Information Circular and
                any other
                documentation required to be mailed under the Fund Declaration of
                Trust or
                applicable Laws in connection with the Meeting to each Unitholder
                and
                holder of Performance Units and each other Person to whom such documents
                are required to be sent under applicable Laws and the Fund Declaration
                of
                Trust. CanWest, General Partner and Limited Partnership will provide
                such
                assistance as Fund may reasonably request in such regard (and in
                respect
                of any amendments to the Information
                Circular).

            

    

     

    
      	
               

            	
              (b)

            	
              Each
                of Limited Partnership and Fund shall proceed diligently, in a coordinated
                fashion and use its reasonable commercial efforts to co-operate in
                the
                preparation of the Information Circular and of any exemptive relief
                applications or orders and

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              any
                other documents deemed reasonably necessary by any of them to discharge
                their respective obligations under applicable
                Laws.

            

    

     

    
      	
               

            	
              (c)

            	
              Each
                of the Parties shall furnish to Fund in writing, on a timely basis,
                all
                information as may be reasonably required to effect the foregoing
                actions,
                and each covenants that no information so furnished by it in writing
                in
                connection with those actions will contain any untrue statement of
                a
                material fact or omit to state a material fact that is required to
                be
                stated or that is necessary to make any statement not misleading
                in the
                light of the circumstances in which it was
                made.

            

    

     

    
      	
               

            	
              (d)

            	
              Each
                of the Parties shall promptly notify the others if at any time before
                the
                Effective Time it becomes aware that there is a Misrepresentation
                in the
                Information Circular or that the Information Circular otherwise requires
                an amendment or supplement.  In any such event, the Parties
                shall cooperate in the preparation of a supplement or amendment to
                the
                Information Circular and, if required, shall cause the same to be
                distributed or otherwise publicly disseminated to Unitholders, holders
                of
                Performance Units and other Persons to whom the Information Circular
                was
                required to be sent under applicable Laws and/or to be filed with
                the
                applicable Securities Regulatory
                Authorities.

            

    

     

    
      	
               

            	
              (e)

            	
              Fund
                shall ensure that the Information Circular complies in all material
                respects with all applicable Laws and, without limiting the generality
                of
                the foregoing, that the Information Circular does not contain a
                Misrepresentation (except with respect to any information relating
                to and
                provided by CanWest, General Partner or Limited Partnership in writing)
                and provides the Unitholders with information in sufficient detail
                to
                permit them to form a reasoned judgement concerning the matters to
                be
                placed before them at the Meeting.

            

    

     

    
      	
               

            	
              (f)

            	
              Other
                than as required for the Fund Board to comply with its fiduciary
                duties
                under applicable Laws and/or the Fund Declaration of Trust or as
                otherwise
                required by applicable Laws or the Fund Declaration of Trust, Fund
                shall
                not adjourn, postpone or cancel (or propose for adjournment, postponement
                or cancellation) the Meeting without Limited Partnership’s prior written
                consent, acting reasonably, provided that Fund shall, subject to
                and in
                accordance with the requirements of the Fund Declaration of Trust
                and
                applicable Laws, adjourn or postpone the Meeting (including taking
                or
                causing to be taken all steps necessary to reconvene any such meeting)
                from time to time at Limited Partnership’s request if: (i) reasonably
                necessary to obtain Unitholder Approval; or (ii) determined to be
                desirable by Limited Partnership, acting
                reasonably.

            

    

     

    
      	
               

            	
              (g)

            	
              If
                requested Fund shall deliver to, or cause to be delivered to, Limited
                Partnership, promptly upon written request: (i) basic lists of all
                registered Unitholders or other security holders of Fund showing
                the name
                and address of each holder and the number of Units, or other securities
                of
                Fund as the case may be, held by each such holder, all as shown on
                the
                records of Fund as of a date that is not more than three Business
                Days
                prior to the date of delivery of such basic lists and a list of
                participants in book-based clearing systems, nominee registered
                Unitholders, or other securities of Fund as the case may be, such
                as
                CDS&Co., and non-registered beneficial owners lists, and securities
                positions and other information andassistance as Limited Partnership
                may
                reasonably request in connection with the consummation of the Transaction;
                and (ii) from time to time, at the request of Limited Partnership,
                acting
                reasonably, updated or supplemental lists setting out any changes
                from the
                list referred to in clause (i) above in the names or addresses of
                the
                registered Unitholders or other security holders or the number of
                Units or
                other securities of Fund held by each such
                holder.

            

    

     

    
      	
               

            	
              (h)

            	
              Fund
                shall solicit proxies in respect of the Special Resolution and shall
                be
                reimbursed by CanWest for any reasonable out-of-pocket expenses it
                incurs
                in connection with such solicitation. CanWest, General Partner and
                Limited
                Partnership shall be permitted, in compliance with applicable Laws,
                to
                solicit proxies on behalf of Fund in respect of the Special Resolution
                unless and until the Fund Board, in accordance with Section 2.3, withdraws or modifies its recommendation
                that Unitholders vote in favour of the Special Resolution.  Fund
                agrees that Limited Partnership and/or CanWest may at CanWest’s expense,
                use the services of dealers and proxy solicitation agents acceptable
                to
                Fund, acting reasonably, to solicit proxies in favour of the Special
                Resolution.  Fund shall be afforded a reasonable opportunity to
                review any scripts or related materials in connection with any such
                proxy
                solicitation and Limited Partnership will consider (acting reasonably)
                all
                comments, Limited Partnership shall advise Fund with respect to proxy
                solicitation reports received from such proxy solicitation agent
                as
                reasonably requested by Fund. Fund shall advise
                Limited Partnership and CanWest with respect to proxy solicitation
                results
                as reasonably requested by Limited Partnership or
                CanWest.

            

    

     

    
      	
              2.5

            	
              Approval
                Under Securityholders’
Agreement

            

    

     

    The
      Parties agree and acknowledge that the consideration and approval of the
      Transaction by the Independent Committee shall be deemed to satisfy the
      provisions of Section 2.7 of the Securityholders’ Agreement.

     

    
      	
              2.6

            	
              Closing

            

    

     

    The
      Closing (the “Closing”) will be held as
      soon as practicable and in any event no later than the Business Day after the
      satisfaction or waiver (subject to applicable Laws) of the conditions (excluding
      conditions that, by their terms, are to be satisfied on the Closing Date, but
      subject to the satisfaction or, where permitted the waiver, of those conditions
      as of the Closing Date) set forth in Article 5, and
      is expected to be held on or before 10:00 a.m. (Toronto time) on July 10,
      2007 or such other time or date as is agreed to in writing by the Parties (the
      “Closing Date”).  The Closing will take place at the
      offices of Osler, Hoskin & Harcourt LLP, 1 First Canadian Place, 100 King
      Street West, Toronto, Ontario, M5X 1B8, on the Closing Date unless another
      place
      is agreed to in writing by the Parties.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    Article
      3

     

    REPRESENTATIONS
      AND WARRANTIES

     

    
      	
              3.1

            	
              Representations
                and Warranties of the
                Parties

            

    

     

    Each
      Party hereby represents and warrants to and in favour of each other Party as
      follows and acknowledges that each other Party is relying upon such
      representations and warranties in connection with the matters contemplated
      by
      this Agreement:

     

    
      	
               

            	
              (a)

            	
              It
                has been duly formed or incorporated, as the case may be, under applicable
                Law, is validly existing and has the requisite power and authority
                to own
                its properties and assets and conduct its business, as applicable,
                as
                currently owned and conducted.

            

    

     

    
      	
               

            	
              (b)

            	
              It
                has the requisite power and authority to execute, deliver and to
                enter
                into this Agreement and to perform its obligations
                hereunder.  The execution, delivery and performance of this
                Agreement by it and the consummation by it of the Transaction have
                been
                duly authorized by its board of directors (or equivalent).  This
                Agreement has been duly executed and delivered by it and constitutes
                a
                valid and binding obligation of it enforceable against it in accordance
                with its terms except to the extent that enforceability of obligations
                and
                the availability of certain remedies hereunder are limited by general
                principles of equity or by bankruptcy, insolvency, fraudulent transfer
                or
                other Laws relating to or affecting creditors’ rights
                generally.

            

    

     

    
      	
              3.2

            	
              Representations
                and Warranties of Fund

            

    

     

    Fund
      hereby represents, warrants and covenants to and in favour of each of CanWest,
      General Partner and Limited Partnership as follows, and acknowledges that each
      of CanWest, General Partner and Limited Partnership is relying upon such
      representations, warranties and covenants in connection with the matters
      contemplated by this Agreement:

     

    
      	
               

            	
              (a)

            	
              the
                Independent Committee and Fund have received the oral opinion (the
                “Fairness Opinion”) of CIBC World Markets Inc., on May
                25, 2007 a (true and complete copy of which, when given in writing,
                will
                be delivered to Limited Partnership by Fund), to the effect that,
                based
                upon and subject to the matters set forth therein, as at May 25,
                2007 the
                consideration being offered to the Unitholders under the Transaction
                is
                fair from a financial point of view, to such Unitholders, and such
                opinion
                has not been withdrawn or modified at the date of this
                Agreement;

            

    

     

    
      	
               

            	
              (b)

            	
              Fund
                has provided to Limited Partnership the draft formal valuation of
                Units
                dated May 25, 2007 prepared by CIBC World Markets Inc. as required
                pursuant to OSC Rule 61-501 and Regulation Q-27 and delivered to the
                Independent Committee (the “Valuation”).  Fund
                covenants to use its reasonable best efforts to deliver to Limited
                Partnership the final version of the Valuation substantially in the
                form
                of the draft Valuation (including the same valuation range for the
                Units
                as contained in the draft Valuation) as soon as practicable after
                the date
                hereof and in any event by no later than May 30,
                2007;

            

    

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (c)

            	
              the
                Fund Board has determined that as of the date hereof the Transaction
                is
                fair to Unitholders and is in the best interests of Fund and Unitholders
                and it is in the best interests of Fund and the Unitholders to support
                the
                Transaction; and

            

    

     

    
      	
               

            	
              (d)

            	
              the
                Fund Board has unanimously passed a resolution recommending, as of
                the
                date hereof, that Unitholders vote in favour of the Special Resolution
                approving the Transaction at the
                Meeting.

            

    

     

    
      	
              3.3

            	
              Representations
                and Warranties of Limited
                Partnership

            

    

     

    Limited
      Partnership hereby represents and warrants to and in favour of each of Fund
      and
      Trust as follows, and acknowledges that each of Fund and Trust is relying upon
      such representations and warranties in connection with the matters contemplated
      by this Agreement:

     

    
      	
               

            	
              (a)

            	
              none
                of the execution and delivery of this Agreement by Limited Partnership,
                the consummation by Limited Partnership of the Transaction nor compliance
                by Limited Partnership with any of the provisions hereof
                will:

            

    

     

    
      	
               

            	
              (i)

            	
              violate,
                conflict with, or result in a breach of any provision of, require
                any
                consent or approval under, or constitute a default (or an event which,
                with notice or lapse of time or both, would constitute a default)
                or
                result in a right of termination or acceleration under, any of the
                terms,
                conditions or provisions of: (A) the constating documents of Limited
                Partnership; or (B) any material contract to which Limited Partnership
                or
                any of its subsidiaries is a party, including without limitation
                any
                contract to which Limited Partnership is a party listed as a “Material
                Contract” in the final prospectus of Fund dated October 7, 2005, other
                than solely with respect to the consummation by Limited Partnership
                of the
                Transaction, the Limited Partnership Existing Credit Facilities,
                which
                will be repaid in full by Limited Partnership on the Closing Date;
                or

            

    

     

    
      	
               

            	
              (ii)

            	
              violate
                any judgment, ruling, order, writ, injunction, award, decree, statute,
                ordinance, rule or regulation applicable to Limited Partnership or
                any of
                its subsidiaries;

            

    

     

    
      	
               

            	
              (b)

            	
              CanWest,
                on behalf of itself, CanWest Global and their respective subsidiaries,
                has
                provided all necessary consents to the Transaction, and none of the
                execution and delivery of this Agreement by Fund and Trust, the
                termination of this Agreement in accordance with its terms, the
                consummation by Fund and Trust of the Transaction nor compliance
                by Fund
                or Trust with any of the provisions hereof will violate, conflict
                with, or
                result in a breach of any provision of, require any further consent
                or
                approval under, or constitute a default (or an event which, with
                notice or
                lapse of time or both, would constitute a default) or result in a
                right of
                termination or acceleration under, any of the terms, conditions or
                provisions of any material contract to which Fund and/or Trust, on
                the one
                hand, and Limited Partnership, CanWest and/or CanWest Global, on
                the other
                hand, is a party, including without limitation any such contract
                listed as
                a “Material Contract” in the final prospectus of Fund dated October 7,
                2005, other than solely with respectto the consummation by Fund or
                Trust
                of the Transaction, the Limited Partnership Existing Credit
                Facilities;

            

    

     

    
      	
               

            	
              (c)

            	
              it
                has entered into the Commitment Letter and delivered to Fund and
                Trust a
                true and correct copy of the Commitment
                Letter;

            

    

     

    
      	
               

            	
              (d)

            	
              the
                Commitment Letter, in the form so delivered, is a legal, valid and
                binding
                obligation of Limited Partnership, except to the extent that
                enforceability of obligations and the availability of certain remedies
                are
                limited by general principles of equity or by bankruptcy, insolvency,
                fraudulent transfer or other Laws relating to or affecting creditors’
                rights generally, and is in full force and effect as of the date
                hereof;

            

    

     

    
      	
               

            	
              (e)

            	
              the
                Short-Term Credit Facility will, when funded in accordance with its
                terms,
                together with existing cash balances of Limited Partnership, be sufficient
                to permit Limited Partnership to pay the aggregate LP Unit Consideration
                payable pursuant to this Agreement, to repay the Limited Partnership
                Existing Credit Facilities and to pay related fees and expenses;
                

            

    

     

    
      	
               

            	
              (f)

            	
              Limited
                Partnership has fully paid any and all commitment fees or other fees
                required by the Commitment Letter that have come due
                as of the date hereof;

            

    

     

    
      	
               

            	
              (g)

            	
              no
                event has occurred as of the date hereof which constitutes a default
                on
                the part of Limited Partnership or any of its subsidiaries under
                the
                Commitment Letter;

            

    

     

    
      	
               

            	
              (h)

            	
              except
                for the conditions set forth in the Commitment Letter, there are
                no other
                conditions precedent to the Short-Term Credit Facility, and as of
                the date
                hereof, Limited Partnership has no reason to believe that it will
                be
                unable to satisfy on a timely basis any term or condition of closing
                to be
                satisfied by it contained in the Commitment
                Letter.

            

    

     

    
      	
              3.4

            	
              Expiry
                of Representations and
                Warranties

            

    

     

    All
      representations and warranties contained in this Agreement and in all
      certificates delivered pursuant to this Agreement shall terminate on the earlier
      of the Effective Time and the termination of this Agreement in accordance with
      its terms.

     

    ARTICLE
      4

     

    COVENANTS

     

    
      	
              4.1

            	
              Ordinary
                Course of Business

            

    

     

    Each
      of
      Fund and Trust hereby agrees that until the earlier of the Effective Time and
      the date on which this Agreement has been terminated in accordance with its
      terms and except to the extent otherwise specifically contemplated by this
      Agreement or required by Law, unless consented to in writing by Limited
      Partnership (such consent not to be unreasonably withheld):

     

    
      	
               

            	
              (a)

            	
              it
                shall act in the ordinary course consistent with past
                practice;

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (b)

            	
              it
                shall not:

            

    

     

    
      	
               

            	
              (i)

            	
              issue,
                or commit to issue, any Units, Trust Units or Trust Notes, or other
                ownership interest in Fund or in Trust (including debt securities),
                except
                as required on the due exercise of any outstanding exchangeable securities
                or other rights or except as required by Fund Declaration of Trust,
                Trust
                Declaration of Trust, the Liquidity and Exchange Agreement or the
                Performance Unit Plan;

            

    

     

    
      	
               

            	
              (ii)

            	
              grant,
                or commit to grant, any options, warrants, exchangeable securities,
                convertible securities or rights to subscribe for, purchase or otherwise
                acquire, exchange into or convert into any Units, Trust Units or
                Trust
                Notes or other ownership interest in Fund or in
                Trust;

            

    

     

    
      	
               

            	
              (iii)

            	
              directly
                or indirectly redeem, purchase or otherwise acquire or commit or
                offer to
                redeem, purchase or otherwise acquire any Unit, Trust Unit, Trust
                Note or
                other ownership interest in Fund or Trust, except as may be required
                under
                Fund Declaration of Trust, Trust Declaration of Trust or the Liquidity
                and
                Exchange Agreement;

            

    

     

    
      	
               

            	
              (iv)

            	
              (A)
                grant to any trustee, officer, director or employee of Fund or of
                Trust an
                increase in compensation in any form, except in the ordinary course
                consistent with past practice and except for payments made to members
                of
                the Independent Committee in consideration for their service on such
                committee not to exceed $50,000 in aggregate per trustee; (B) grant
                any
                general salary increase, except in the ordinary course of business
                consistent with past practice; (C) commit to or make any loan to
                any
                trustee of Fund or Trust; (D) take any action with respect to the
                grant of
                any bonus or similar payment or benefit to, or grant any severance,
                retention, retirement, change of control or termination payment to
                or
                enter into any employment agreement with any trustee of Fund or Trust
                or
                enter into any change of control or retention arrangement, except
                in the
                ordinary course of business; (E) increase any benefits payable under
                its
                current severance, change of control or termination pay policies;
                or (F)
                adopt or amend in any material respect or make any voluntary contribution
                to any pension plan;

            

    

     

    
      	
               

            	
              (v)

            	
              (A)
                (x) adopt any new retention, bonus or similar plan for the benefit
                of
                trustees; or (y) amend, modify or vary the Performance Unit Plan,
                or any
                of the Performance Units or other benefits or entitlements granted
                thereunder; or (B) subject to Section 4.1(b)(iv)(A),
                make
                any payments to trustees not consistent with past
                practice;

            

    

     

    
      	
               

            	
              (vi)

            	
              increase
                the Monthly Distribution or increase any distribution, dividend payment,
                or declare, set aside, or pay any dividend or make any other distribution
                (other than, subject to Section 4.1(b)(vii),
                the
                Monthly Distribution in the ordinary course of business consistent
                with
                past practice) or payment (whether in cash, shares units or property)
                or
                change the current record or payment date for the Monthly Distribution
                exceptfor: (A) any dividend or distribution required to be made by
                Trust
                in connection with the Monthly Distribution; (B) any payment or
                distribution required by the Fund Declaration of Trust to be made,
                whether
                on a redemption of the Units or otherwise, in accordance with its
                terms,
                and (C) any cash payment made in connection with the redemption of
                the
                Units or the termination of Fund or Trust as contemplated by this
                Agreement; and (D) distribution by Trust to Fund of the Expense
                Distribution received by Trust from Limited Partnership pursuant
                to
                Section 6.3 of this
                Agreement;

            

    

     

    
      	
               

            	
              (vii)

            	
              in
                the event Unitholder Approval has been obtained, declare, set aside,
                pay
                or make any Monthly Distribution other than the Monthly Distribution
                for
                the month ending prior to the Closing Date;
                or

            

    

     

    
      	
               

            	
              (viii)

            	
              declare
                any Excess Distribution Amount.

            

    

     

    
      	
              4.2

            	
              Ordinary
                Course Covenants of
                Partnership

            

    

     

    Each
      of
      Limited Partnership and General Partner hereby agrees that until the earlier
      of
      the Effective Time and the date on which this Agreement has been terminated
      in
      accordance with its terms and except to the extent otherwise specifically
      contemplated by this Agreement or required by Law, unless consented to in
      writing by the Fund Board (such consent not to be unreasonably
      withheld):

     

    
      	
               

            	
              (a)

            	
              it
                shall, and shall cause each of its subsidiaries, including, for greater
                certainty, CanWest MediaWorks Publications and any subsidiaries of
                CanWest
                MediaWorks Publications, to conduct its and their respective business
                only
                in and not take or omit to take any action except in, the usual,
                ordinary
                and regular course of business consistent with past practice;
                and

            

    

     

    
      	
               

            	
              (b)

            	
              without
                limiting the generality of the foregoing, it shall take all reasonable
                commercial efforts to ensure, to the extent that it is within its
                ability
                to do so, that a Material Adverse Effect does not
                occur.

            

    

     

    
      	
              4.3

            	
              Cooperation
                of Fund and Trust 

            

    

     

    
      	
               

            	
              (a)

            	
              Each
                of Fund and Trust agree to cooperate with CanWest, General Partner
                and
                Limited Partnership with respect to any tax planning or tax structuring
                proposed by any of CanWest, General Partner or Limited Partnership
                in
                connection with the Transaction, to the extent such tax planning
                or tax
                structuring does not cause prejudice or result in any additional
                costs
                (unless such costs are paid or otherwise indemnified by CanWest)
                to Fund
                or Trust or the Unitholders.

            

    

     

    
      	
               

            	
              (b)

            	
              Each
                of the Parties agree to assist and co-operate with each other, and
                to take
                appropriate steps to amend and/or terminate, the Fund Material Documents
                or any other agreement or instrument as may be necessary or desirable
                in
                any Party’s judgment, acting reasonably, in order to permit the
                Transaction to be completed as contemplated by this Agreement and
                as
                otherwise may be necessary or desirable to give effect to the
                Transaction.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              4.4

            	
              Financing

            

    

     

    Limited
      Partnership shall use commercially reasonable efforts to obtain and effect
      the
      Short-Term Credit Facility on the terms set forth in the Commitment Letter.
      Without limiting the generality of the foregoing, Limited Partnership will
      satisfy, on a timely basis, all covenants, terms, representations and warranties
      applicable to Limited Partnership in the Commitment
      Letter that are within its control and enforce its rights
      under the Commitment Letter. Limited Partnership will keep the Fund Board
      informed with respect to all material activity concerning the status of the
      Short-Term Credit Facility and will give the Fund Board prompt notice of any
      material change with respect to the Short-Term Credit Facility. Without limiting
      the generality of the foregoing, Limited Partnership agrees to notify the Fund
      Board promptly, and in any event within one Business Day, if at any time prior
      to the Effective Time: (i) the Commitment Letter expires or terminates for
      any
      reason, (ii) any event occurs that, with or without notice, lapse of time or
      both, would individually or in the aggregate, constitute a default or breach
      on
      the part of Limited Partnership or any of its subsidiaries under the Commitment
      Letter or any definitive agreement or documentation relating thereto, or if
      Limited Partnership has any reason to believe that it will be unable to satisfy,
      on a timely basis, any term or condition of the Short-Term Credit Facility,
      or
      (iii) any financing source that is a party to the Commitment Letter advises
      Limited Partnership, whether orally or in writing, that such source either
      no
      longer intends to provide or underwrite the Short-Term Credit Facility on the
      terms set forth in the Commitment Letter, or requests amendments to the
      Commitment Letter that are or may be materially adverse to the timely completion
      by Limited Partnership of the Transaction.

     

    
      	
              4.5

            	
              Trustees’,
                Directors’ and Officers’ Insurance and
                Indemnities

            

    

     

    
      	
               

            	
              (a)

            	
              Notwithstanding
                any other term of this Agreement, Fund shall be permitted to secure
                pre-paid non-cancellable trustees’, directors’ and officers’ liability
                insurance coverage, equivalent to the insurance coverage currently
                applicable to such individuals, for the current and former trustees,
                directors and officers of Fund or Trust on a six year “trailing” (or
                “run-off”) basis; and Limited Partnership agrees to reimburse Fund for the
                cost of such insurance coverage.

            

    

     

    
      	
               

            	
              (b)

            	
              From
                and after the Effective Time, Limited Partnership shall indemnify
                the
                current and former trustees of Fund and Trust, and any such individuals
                that were also directors or officers of General Partner or any
                subsidiaries of Limited Partnership or its subsidiaries (collectively,
                the
                “Indemnified Persons”), to substantially the same extent
                to which such Indemnified Persons are indemnified by Fund and Trust
                (and,
                as applicable, General Partner or any subsidiaries of Limited Partnership
                or its subsidiaries) as of the date hereof, including the indemnities
                set
                out in the Fund Declaration of Trust and the Trust Declaration of
                Trust,
                for liabilities and obligations of Fund and Trust and for acts or
                omissions occurring on or prior to, or at or after, the Effective
                Time
                (including acts or omissions occurring in connection with the approval
                of
                this Agreement and consummation of the Transaction), and Limited
                Partnership will execute and deliver an indemnity agreement on or
                prior to
                the Effective Time with each of the Indemnified Persons (collectively,
                the
                “Indemnity Agreements”), substantially in the form of the
                indemnity agreement in Schedule B, to evidence this obligation and
                such
                indemnity agreement shall be in addition to the existing indemnitiesfrom
                Fund, Trust, General Partner, Limited Partnership or any of their
                subsidiaries.

            

    

     

    
      	
               

            	
              (c)

            	
              The
                provisions of this Section 4.5 are intended
                to be for the benefit of, and will be enforceable by, each individual
                referred to therein, his or her heirs and successors and his or her
                legal
                representatives and, for such purpose, Limited Partnership hereby
                confirms
                that it is acting as agent on their
                behalf.

            

    

     

    
      	
               

            	
              (d)

            	
              If
                Limited Partnership or any of its successors or assigns shall at
                any time
                prior to the later of: (i) six years from the Effective Time; and
                (ii) the
                date on which any outstanding claims against the Indemnified Persons
                for
                which indemnification has been sought under the terms hereof have
                been
                fully and finally resolved, have net realizable assets of less than
                $60 million, then CanWest and Limited Partnership shall make proper
                provision so that a Person with net realizable assets of not less
                than
                $60 million shall assume all of the obligations of Limited
                Partnership set forth in the Indemnity Agreements and this Section 4.5 and for greater certainty, the foregoing
                obligation shall terminate on the last day of the foregoing
                period.

            

    

     

    
      	
               

            	
              (e)

            	
              The
                provisions of this Section 4.5 shall survive
                the termination of this Agreement as a result of the occurrence of
                the
                closing of the Transaction.

            

    

     

    
      	
              4.6

            	
              Winding-Up
                and Termination

            

    

     

    
      	
               

            	
              (a)

            	
              The
                Parties acknowledge that immediately prior to the redemption and
                cancellation of the issued and outstanding Units contemplated by
                Section 2.1(b)(iii), Fund will have no
                material assets other than the Transaction Consideration and will
                have no
                material liabilities other than costs, expenses and liabilities associated
                with such redemption and cancellation and the subsequent winding
                up and
                termination of Fund.  The Parties further acknowledge that
                effective immediately following the Effective Time, all members of
                the
                Fund Board (including for these purposes, Mr. Richard Leipsic) shall
                resign and that Limited Partnership shall designate in writing a
                Person
                (the “Post-Closing Fund Trustee”) which shall be
                appointed effective following the Effective Time and immediately
                prior to
                the resignation of the Fund Board (including for these purposes,
                Mr.
                Richard Leipsic) and shall agree to act as trustee of Fund.  All
                liabilities associated with such redemption and cancellation and
                all
                costs, expenses and liabilities associated with the subsequent winding
                up
                and termination of Fund shall be the responsibility of Limited Partnership
                and/or Post-Closing Fund Trustee.

            

    

     

    
      	
               

            	
              (b)

            	
              The
                Parties acknowledge that immediately after the redemption and cancellation
                of the issued and outstanding Trust Units contemplated by Section 2.1(a)(x), Trust will have no material assets
                and will have no material liabilities other than costs, expenses
                and
                liabilities associated with such redemption and cancellation and
                the
                subsequent winding up and termination of Trust. All liabilities associated
                with such redemption and cancellation and all costs, expenses and
                liabilities associated with the subsequent winding up and termination
                of
                Trust shall be the responsibility of Limited Partnership. Limited
                Partnership agrees to take, or cause to be taken, all reasonable
                actions
                and to do, or cause to be done, all thingsreasonably necessary, proper
                or
                advisable in order to complete all administrative matters necessary
                or
                advisable to properly wind-up
                Trust.

            

    

     

    
      	
               

            	
              (c)

            	
              Fund
                and Trust have delivered to Limited Partnership a good faith estimate
                of
                their transaction expenses as of the Closing and shall deliver a
                further
                good faith estimate of such expenses to Limited Partnership three
                Business
                Days prior to Closing.

            

    

     

    
      	
              4.7

            	
              Satisfaction
                of Conditions

            

    

     

    Each
      Party shall use its reasonable commercial efforts to satisfy the conditions
      contained in Article 5 and shall take such measures
      as are lawful and within its power or control to implement the Transaction
      as of
      the Effective Time in accordance with the terms of this Agreement.

     

    
      	
              4.8

            	
              Consultation

            

    

     

    The
      Parties agree to consult with each other wherever practicable in issuing any
      press releases or otherwise making public statements with respect to this
      Agreement, the Transaction and in making any filing with any Governmental Entity
      with respect thereto.  Subject to applicable Laws, each Party shall
      use its reasonable commercial efforts to enable the other Party to review and
      comment on all such press releases prior to the release thereof and shall enable
      the other Party to review and comment on such filings prior to the filing
      thereof.  CanWest and Fund agree to issue jointly a press release with
      respect to the execution of this Agreement as soon as practicable in a form
      acceptable to both of them.  CanWest and Fund each agrees to file a
      copy of this Agreement with the relevant Securities Regulatory Authority as
      required by applicable Laws.  Subject to the terms and conditions
      hereof, each Party agrees not to make any public statement that is inconsistent
      with such press release.

     

    
      	
              4.9

            	
              Amendment
                of Performance Unit Plan

            

    

     

    The
      Fund
      Board shall amend the Performance Unit Plan at the Final Redemption Date as
      follows:

     

    
      	
               

            	
              (a)

            	
              by
                including the following new definition in Section 1.2: “Final Redemption
                Date” has the meaning ascribed to that term in the Privatization Agreement
                dated May 25, 2007 between CanWest MediaWorks Inc., CWMW Trust,
                CanWest MediaWorks (Canada) Inc., CanWest MediaWorks Limited Partnership
                and CanWest MediaWorks Income Fund;

            

    

     

    
      	
               

            	
              (b)

            	
              by
                replacing the definition of “Performance Period” in Section 1.2(y) with
                the following: “Performance Period” means, in respect of each grant of
                Performance Units, the period from the Award Date up to and including
                the
                Final Redemption Date;

            

    

     

    
      	
               

            	
              (c)

            	
              by
                replacing the definition of “Redemption Date” in Section 1.2(cc) with the
                following “Redemption Date” means, in respect of any Redemption Unit, the
                Final Redemption Date; and

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

              

                  -  -      
    

      

    

    
      	
               

            	
              (d)

            	
              Notwithstanding
                Section 6.1 or any other provision of the Performance Unit Plan,
                each
                Participant shall be paid a cash payment equal to the Unit Redemption
                Price for each Redemption Unit credited to the Participant on the
                Final
                Redemption Date, with such amount to be paid on the Final Redemption
                Date
                by the Participant’s employer or the Fund Entity to whom the Participant
                provides services, and after such payment the Participant shall no
                longer
                have any rights under the Performance Unit Plan. For greater certainty,
                the Participant’s employer or the Fund Entity to whom the Participant
                provides services, as the case may be, may deduct or withhold from
                such
                payment all amounts required by applicable Laws to be deducted or
                withheld
                from such payment, provided that any such amounts so deducted or
                withhold
                are remitted as required by applicable
                Laws.

            

    

     

    ARTICLE
      5

     

    CLOSING
      CONDITIONS

     

    
      	
              5.1

            	
              Mutual
                Conditions Precedent 

            

    

     

    The
      obligations of CanWest, General Partner and Limited Partnership on the one
      hand,
      and Fund and Trust, on the other hand, hereunder are subject to the satisfaction
      at or before the Effective Time of the following conditions any of which may
      only be waived in writing by the mutual consent of CanWest, General Partner
      and
      Limited Partnership on the one hand, and Fund and Trust, on the other
      hand:

     

    
      	
               

            	
              (a)

            	
              Unitholder
                Approval shall have been obtained;
                and

            

    

     

    
      	
               

            	
              (b)

            	
              no
                Governmental Entity shall have enacted, issued, promulgated, enforced
                or
                entered any Law which is then in effect and has the effect of making
                the
                Transaction illegal or otherwise preventing or prohibiting the
                consummation of the Transaction.

            

    

     

    
      	
              5.2

            	
              Conditions
                in Favour of CanWest, General Partner and Limited
                Partnership

            

    

     

    The
      obligations of CanWest, General Partner and Limited Partnership hereunder are
      subject to the satisfaction at or before the Effective Time of the following
      conditions for the exclusive benefit of CanWest, General Partner and Limited
      Partnership, any of which may be waived in writing by CanWest, General Partner
      and Limited Partnership, collectively:

     

    
      	
               

            	
              (a)

            	
              the
                representations and warranties of each of Fund and Trust contained
                in this
                Agreement shall be true and correct at the Effective Time with the
                same
                force and effect as if such representations and warranties were made
                at
                and as of such time (except to the extent that any such representation
                or
                warranty by its terms, is expressly limited to a specific date, in
                which
                case, as of such specific date) and a certificate dated the Closing
                Date
                to that effect shall have been signed on behalf of each of Fund and
                Trust
                and without personal liability by two trustees of each such Person
                and
                delivered to CanWest, Limited Partnership and General Partner, each
                such
                certificate to be in form and substance satisfactory to CanWest,
                Limited
                Partnership and General Partner, acting
                reasonably;

            

    

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

              

                  -  -      
    

      

    

    
      	
               

            	
              (b)

            	
              each
                of Fund and Trust shall have complied in all material respects with
                and
                performed in all material respects its obligations, covenants and
                agreements hereunder that are to be complied with or performed at
                or
                before the Effective Time, and a certificate dated the Closing Date
                to
                that effect shall have been signed on behalf of each of Fund and
                Trust and
                without personal liability by two trustees of each such Person and
                delivered to CanWest, Limited Partnership and General Partner, each
                such
                certificate to be in form and substance satisfactory to CanWest,
                Limited
                Partnership and General Partner, acting
                reasonably;

            

    

     

    
      	
               

            	
              (c)

            	
              Limited
                Partnership shall have received the funds from the Short-Term Credit
                Facility in the amount contemplated by the Commitment Letter to be
                delivered as of the Closing Date on the terms and conditions set
                forth
                therein;

            

    

     

    
      	
               

            	
              (d)

            	
              there
                shall not have occurred or exist a Material Adverse
                Effect;

            

    

     

    
      	
               

            	
              (e)

            	
              Limited
                Partnership shall not have determined, acting reasonably and based
                on the
                opinion of counsel, that the SIFT Proposals will apply to Fund so
                as to
                result in additional tax payable by Fund prior to January 1,
                2011;

            

    

     

    
      	
               

            	
              (f)

            	
              there
                shall not be pending or threatened in writing any bona fide suit,
                action or proceeding by any Governmental Entity or any other Person:
                (i)
                seeking to prohibit or restrict the consummation of the Transaction
                or
                seeking to obtain from the Parties any material damages directly
                or
                indirectly in connection with the Transaction; or (ii) that is
                reasonably likely to have a Material Adverse Effect;
                and

            

    

     

    
      	
               

            	
              (g)

            	
              each
                of the members of the Fund Board, and each of such individuals who
                is also
                a trustee of Trust and/or who is also a director of General Partner,
                shall
                have resigned from each of such positions effective immediately after
                the
                Effective Time and in the case of the Fund, the Post Closing Fund
                Trustee
                shall have been duly appointed, as sole trustee, effective immediately
                after such applicable resignations.

            

    

     

    CanWest,
      General Partner and Limited Partnership may not rely upon the failure to satisfy
      any of the conditions precedent in Section 5.2
      if the condition precedent would have been satisfied but for a material default
      by any of CanWest, General Partner or Limited Partnership in complying with
      its
      obligations set forth in this Agreement.

     

    
      	
              5.3

            	
              Conditions
                in Favour of Fund and
                Trust

            

    

     

    The
      obligations of Fund and Trust hereunder are subject to the satisfaction at
      or
      before the Effective Time of the following conditions for the exclusive benefit
      of Fund and Trust, any of which may be waived in writing by Fund and Trust,
      collectively:

     

    
      	
               

            	
              (a)

            	
              the
                representations and warranties of each of CanWest, Limited Partnership
                and
                General Partner set forth in: (i) Section 3.1
                of this Agreement shall be true and correct; and (ii) all other Sections
                of this Agreement shall be true and correct except to the extent
                that any
                such breach would not individually or in the aggregate reasonably
                be
                expected to have a material adverse effect on the abilityof any of
                CanWest, Limited Partnership or General Partner to consummate the
                Transactions, in the case of each of clauses (i) and (ii) at the
                Effective
                Time with the same force and effect as if such representations and
                warranties were made at and as of such time (except to the extent
                that any
                such representation or warranty by its terms, is expressly limited
                to a
                specific date, in which case, as of such specific date) and a certificate
                dated the Closing Date to that effect shall have been signed on behalf
                of
                each of CanWest, Limited Partnership and General Partner and without
                personal liability by two senior officers of each such Person and
                delivered to Fund and Trust, each such certificate to be in form
                and
                substance satisfactory to Trust and Fund, acting
                reasonably;

            

    

     

    
      	
               

            	
              (b)

            	
              each
                of CanWest, Limited Partnership and General Partner shall have complied
                in
                all material respects with and performed in all material respects
                its
                obligations, covenants and agreements hereunder that are to be complied
                with or performed at or before the Effective Time, and a certificate
                dated
                the Closing Date to that effect shall have been signed on behalf
                of each
                of CanWest, Limited Partnership and General Partner and without personal
                liability by two senior officers of each such Person and delivered
                to
                Trust and Fund, each such certificate to be in form and substance
                satisfactory to Trust and Fund, acting
                reasonably;

            

    

     

    
      	
               

            	
              (c)

            	
              the
                Indemnity Agreements shall have been duly and validly executed and
                delivered by Limited Partnership;
                and

            

    

     

    
      	
               

            	
              (d)

            	
              Limited
                Partnership shall have made arrangements satisfactory to Fund and
                Trust,
                acting reasonably, to deposit with Fund, or such Person as Fund may
                direct, the Transaction
                Consideration.

            

    

     

    Fund
      and
      Trust may not rely upon the failure to satisfy any of the conditions precedent
      in Section 5.3 if the condition precedent would
      have been satisfied but for a material default by any of Fund or Trust in
      complying with its obligations set forth in this Agreement.

     

    ARTICLE
      6

     

    TERMINATION

     

    
      	
              6.1

            	
              Termination

            

    

     

    This
      Agreement may be terminated and the Transaction may be abandoned at any time
      prior to the Effective Time (notwithstanding any approval of the Special
      Resolution by Unitholders) and, for greater certainty, may not be terminated
      following the Effective Time:

     

    
      	
               

            	
              (a)

            	
              by
                mutual written consent of CanWest and Fund duly authorized by the board of
                directors of CanWest and the Fund
                Board;

            

    

     

    
      	
               

            	
              (b)

            	
              by
                either CanWest or Fund if the Effective Time shall not have occurred
                on or
                before the Outside Date; provided, however, that the right to terminate
                this Agreement under this Section 6.1(b)
                shall not be available to any Party whose failure to fulfill any
                representation, warranty, obligation, covenant or agreement set forth
                in
                this Agreement or other action has been the cause of, or resulted
                in, the
                failure of the Effective Time to occur on or before such
                date;

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (c)

            	
              by
                either CanWest or Fund if any Governmental Entity shall have enacted,
                issued, promulgated, enforced or entered any Law which is then in
                effect
                and has the effect of making the Transaction illegal or otherwise
                preventing or prohibiting the consummation of the
                Transaction;

            

    

     

    
      	
               

            	
              (d)

            	
              by
                either CanWest or Fund if Unitholder Approval is not obtained at
                the
                Meeting or at any adjournment or postponement
                thereof;

            

    

     

    
      	
               

            	
              (e)

            	
              by
                CanWest if the Fund Board fails to recommend the Special Resolution,
                withdraws or modifies in a manner adverse to CanWest, General Partner
                or
                Limited Partnership its approval or recommendation of the Special
                Resolution, this Agreement or the Transaction or shall fail to reaffirm
                such approval or recommendation within three Business Days of receipt
                of
                any written request to do so by
                CanWest;

            

    

     

    
      	
               

            	
              (f)

            	
              by
                CanWest if there shall have occurred or exist a Material Adverse
                Effect or
                if Limited Partnership shall have determined, acting reasonably and
                based
                on the opinion of counsel, that the SIFT Proposals will apply to
                Fund so
                as to result in additional tax payable by Fund prior to January 1,
                2011;

            

    

     

    
      	
               

            	
              (g)

            	
              by
                CanWest, if there has been a breach of or failure to perform any
                representation, warranty, obligation, covenant or agreement on the
                part of
                Fund or Trust set forth in this Agreement, which breach or failure
                to
                perform would cause the conditions set forth in Section 5.2 not to be satisfied on or by the Outside
                Date; or

            

    

     

    
      	
               

            	
              (h)

            	
              by
                Fund, if there has been a breach of or failure to perform any
                representation, warranty, obligation, covenant or agreement on the
                part of
                CanWest, General Partner or Limited Partnership set forth in this
                Agreement, which breach or failure to perform would cause the conditions
                set forth in Section 5.3 not to be
                satisfied on or by the Outside
                Date.

            

    

     

    
      	
              6.2

            	
              Effect
                of Termination

            

    

     

    
      	
               

            	
              (a)

            	
              In
                the event of the termination of this Agreement pursuant to Section
6.1, written notice thereof shall forthwith
                be
                given by the terminating Party to the other Parties specifying the
                provision pursuant to which such termination is
                made.

            

    

     

    
      	
               

            	
              (b)

            	
              In
                the event of the valid termination of this Agreement by CanWest or
                Fund as
                provided in Section 6.1, this Agreement
                shall forthwith become void and have no further effect, and there
                shall be
                no liability or further obligation on the part of either CanWest,
                General
                Partner or Limited Partnership and their respective trustees, directors
                or
                officers, on the one hand, or Fund or Trust and their respective
                trustees,
                directors or officers, on other hand, hereunder, except that the
                provisions of Section 6.3 (Expenses)
                shall remain in full force and effect and shall survive any such
                termination, and liability for any prior breach of this Agreement
                shall
                not be affected.

            

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              6.3

            	
              Expenses

            

    

     

    Each
      Party shall bear and pay all costs, expenses and fees incurred by it in
      connection with the Transaction; provided, however, that in the event that
      Fund
      is not in default of its obligations under this Agreement in any material
      respect, Limited Partnership shall make an Expense Distribution in accordance
      with Sections 5.3 and Section 5.4 of the Limited Partnership Agreement to Trust
      in accordance with Section 2.1 in an amount
      sufficient to allow Fund to pay the reasonable and documented fees and
      out-of-pocket expenses of CIBC World Markets Inc. in respect of the Valuation
      and in respect of the Fairness Opinion and the reasonable and documented
      out-of-pocket costs reasonably incurred by Fund in connection with the
      Transaction, provided further, however, that: (a) in addition to its payment
      obligations in respect of the solicitation of proxies at CanWest’s expense under
      Section 2.4(h), in the event that Fund is not in
      default of its obligations under this Agreement in any material respect,
      Unitholder Approval is obtained at the Meeting, and Closing does not occur
      as a
      result of: (i) the failure of the condition set out in Section 5.2(c) to be satisfied; or (ii) a breach or failure
      to
      perform any representation, warranty, obligation, covenant or agreement on
      the
      part of CanWest, General Partner or Limited Partnership set forth in this
      Agreement, then CanWest shall reimburse Limited Partnership for all reasonable
      and documented out-of-pocket costs reasonably incurred by Limited Partnership
      in
      connection with the Transaction, including the reasonable and documented fees
      and out-of-pocket expenses of CIBC World Markets Inc. in respect of the
      Valuation and in respect of the Fairness Opinion and (b) in the event that
      the
      Fund Board, in accordance with Section 2.3,
      withdraws or modifies its recommendation that Unitholders vote in favour of
      the
      Special Resolution because (i) CIBC World Markets Inc. has rescinded, withdrawn,
      materially changed or failed to confirm on request of Fund, its opinion that
      the
      consideration to be paid to Unitholders under the Transaction is fair, from
      a
      financial point of view, to the Unitholders, or (ii) there shall have been
      a
      change or proposed change in the income tax Laws of Canada or the interpretation
      or administration thereof, which change would, in the reasonable opinion of
      the
      Fund Board, amend, supersede, replace or delay the implementation of the SIFT
      Proposals in any material respect or otherwise materially change or alter the
      tax consequences of the Transaction to Unitholders, and CanWest does not
      terminate this Agreement in accordance with Section 6.1(e), CanWest shall reimburse Limited Partnership
      for all reasonable and documented expenses, reasonably incurred by Limited
      Partnership or reasonably incurred by Fund after the time that the Fund Board
      withdraws or modifies its recommendation.

     

    
      	
              6.4

            	
              Remedies

            

    

     

    The
      Parties acknowledge and agree that an award of money damages may be inadequate
      for any breach of this Agreement by any Party and any such breach would cause
      the non-breaching Parties irreparable harm.  Accordingly, the Parties
      agree that, in the event of any breach or threatened breach of this Agreement
      by
      one of the Parties, the non-breaching Parties will also be entitled, without
      the
      requirement of posting a bond or other security, to equitable relief, including
      injunctive relief and specific performance.  Such remedies will not be
      the exclusive remedies for any breach of this Agreement but will be in addition
      to all other remedies available at Law or equity to each of the
      Parties.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Article
      7

     

    MISCELLANEOUS

     

    
      	
              7.1

            	
              Notices

            

    

     

    Any
      notice, consent or approval required or permitted to be given in connection
      with
      this Agreement (in this Section referred to as a “Notice”)
      shall be in writing and shall be sufficiently given if delivered (whether in
      person, by courier service or other personal method of delivery), or if
      transmitted by facsimile or e-mail:

     

    
      	
               

            	
              (a)

            	
              if
                to CanWest:

            

    

     

    3100
      CanWest Global Place

    201
      Portage Avenue

    Winnipeg,
      MB   R3B 3L7

     

    Attention:                                Richard
      Leipsic, Senior Vice President and General Counsel

    Fax
      number:                                (204)
      947-9841

    E-mail:                                rleipsic@canwest.com

     

    with
      a
      copy to:

     

    Osler,
      Hoskin & Harcourt LLP

    1
      First
      Canadian Place, Box 50

     

    Toronto,
      ON   M5X 1B8

     

    Attention:                                Douglas
      Marshall

    Fax
      number:                                (416)
      862-6666

    E-mail:                                dmarshall@osler.com

    

    
      	
               

            	
              (b)

            	
              if
                to General Partner or Limited
                Partnership:

            

    

     

    1450
      Don
      Mills Road

    Toronto,
      ON   M3B 2X7

     

    Attention:                                President
      and Chief Executive Officer

     

    Fax
      number:                                (416)
      446-5423

     

    with
      a
      copy to:

     

    Osler,
      Hoskin & Harcourt LLP

    1
      First
      Canadian Place, Box 50

     

    Toronto,
      ON   M5X 1B8

     

    Attention:                                Douglas
      Marshall

    Fax
      number:                                (416)
      862-6666

    E-mail:                                dmarshall@osler.com

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

              

                  -  -      
    

      

    

    (c)           if
      to Fund or Trust:

     

    1450
      Don
      Mills Road

    Toronto,
      ON   M3B 2X7

     

    Attention:                                The
      Trustees

    Fax
      number:                                (416)
      446-5423

     

    with
      a
      copy to:

     

    Stikeman
      Elliott LLP,

    5300
      Commerce Court West

    199
      Bay
      Street

    Toronto,
      ON M5L 1B9

     

    Attention:                                Simon
      Romano and Sean Vanderpol

    Fax
      number:                                (416)
      947-0866

    E-mail:                      sromano@stikeman.com
      and svanderpol@stikeman.com

     

    Any
      Notice delivered or transmitted to a Party as provided above shall be deemed
      to
      have been given and received on the day it is delivered or transmitted, provided
      that it is delivered or transmitted on a Business Day prior to 5:00 p.m. local
      time in the place of delivery or receipt.  However, if the Notice is
      delivered or transmitted after 5:00 p.m. local time or if such day is not a
      Business Day then the Notice shall be deemed to have been given and received
      on
      the next Business Day.

     

    Any
      Party
      may, from time to time, change its address by giving Notice to the other Parties
      in accordance with the provisions of this Section.

     

    
      	
              7.2

            	
              Further
                Assurances

            

    

     

    Each
      Party shall, from time to time, and at all times hereafter, at the request
      of
      another Party, but without further consideration, do all such further acts
      and
      execute and deliver all such further documents and instruments as shall
      reasonably be required in order to fully perform and carry out the terms and
      intent hereof.

     

    
      	
              7.3

            	
              Limited
                Liability

            

    

     

    Each
      of
      the Parties hereto acknowledges that the obligations of Fund and Trust under
      this Agreement shall not be personally binding upon any of the trustees of
      Fund
      or Trust, any registered or beneficial holder of securities in such holder’s
      capacity as such or any beneficiary under a plan of which a holder of such
      securities acts as a trustee in such holder’s capacity as such or carrier, and
      that resort shall not be had to, nor shall recourse be sought from, any of
      the
      foregoing or the private property of any of the foregoing in respect of any
      indebtedness, obligation or liability of Fund or Trust arising hereunder, and
      recourse for such indebtedness, obligations or liabilities of Fund or Trust
      shall be limited to, and satisfied only out of, the respective assets held
      in
      trust pursuant to the Fund Declaration of Trust or Trust Declaration of Trust,
      as applicable.  Each of the Parties hereto further acknowledges that
      the liability of the

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

              

                  -  -      
    

      

    

    limited
      partners of Limited Partnership is limited by applicable Laws governing limited
      partnerships.

     

    
      	
              7.4

            	
              Counterparts

            

    

     

    This
      Agreement may be executed in counterparts, each of which shall be deemed to
      be
      an original and both of which shall together constitute one and the same
      instrument.  The Parties may rely on copies of this Agreement which are
      delivered by telecopier or Portable Document Format (PDF) as if such copies
      were
      originals.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF the Parties hereto have caused this Agreement to be
      duly executed as of the date first written above.

     

    
      	
              CANWEST
                MEDIAWORKS INC.

            	 	
              CWMW
                TRUST

            
	
              By:

            	
               
                "John Maguire"

            	
              By:

            	 "John
              Maguire"
	 	
              Name:   John
                Maguire

              Title:    
                Chief Financial Officer

            	 	
              Name: John
                Maguire

              Title:   Trustee

            
	
              By:

            	 "Thomas
              Strike"	 	
              By:

            	 "Thomas
              Strike"
	 	
              Name:   Thomas
                Strike

              Title:      President,
                CanWest MediaWorks International

            	 	
              Name:  Thomas
                Strike

              Title:    Trustee

            
	 	 	 	 
	
              CANWEST
                MEDIAWORKS (CANADA) INC.

            	 	
              CANWEST
                MEDIAWORKS LIMITED PARTNERSHIP by its General Partner, CanWest MediaWorks
                (Canada) Inc.

               

            
	
              By:

            	 "John
              Maguire"	
              By:

            	 "John
              Maguire"
	 	
              Name: John
                Maguire

              Title:   Director

            	 	
              Name: John
                Maguire

              Title:   Director

            
	
              By:

            	 "Thomas
              Strike"	 	
              By:

            	 "Thomas
              Strike"
	 	
              Name:  Thomas
                Strike

              Title:    Director

            	 	
              Name: Thomas
                Strike

              Title:   Director

            
	 	 	 	 	 
	
              CANWEST
                MEDIAWORKS INCOME FUND

            	 	 
	
              By:

            	 "Sheelagh
              Whittaker"	 	 
	 	
              Name:  Sheelagh
                Whittaker

              Title:    Trustee

            	 	 
	
              By:

            	 "Wayne
              McLeod"	 	 	 
	 	
              Name:  Wayne
                McLeod

              Title:    Trustee

            	 	 

    

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    SCHEDULE
      A

     

    FORM
      OF SPECIAL RESOLUTION

     

    BE
      IT RESOLVED as a Special Resolution that:

     

    
      	
              1.

            	
              The
                transactions contemplated in the privatization agreement (the
                “Privatization Agreement”) among CanWest MediaWorks Inc.,
                CWMW Trust, CanWest MediaWorks (Canada) Inc., CanWest MediaWorks
                Limited
                Partnership (the “Limited Partnership”) and CanWest
                MediaWorks Income Fund (the “Fund”) dated May 25, 2007
                (as it may be or may have been amended in accordance with its terms),
                including without limitation the indirect sale of substantially all
                of the
                assets of the Fund to the Limited Partnership and the amendments
                to the
                Fund Material Documents contemplated thereby, are hereby approved,
                ratified and confirmed in all
                respects;

            

    

     

    
      	
              2.

            	
              The
                proposed amendments to the Fund Declaration of Trust as set forth
                in
                Exhibit “A” are hereby approved and authorized, effective as of the
                Effective Time. Any two trustees of the Fund are authorized, without
                further notice to or approval of the Unitholders, to approve such
                other
                amendments to the Fund Declaration of Trust or amendments to or
                terminations of any other Fund Material Document or any other agreement
                or
                instrument as may be necessary or desirable in their discretion in
                order
                to permit the transactions contemplated in the Privatization Agreement
                and
                as otherwise may be necessary or desirable in their discretion in
                order to
                give effect to the transactions contemplated in the Privatization
                Agreement or in order to give effect to this Special
                Resolution.  Without limiting the generality of the foregoing,
                the provisions of Section 5.3 of the Fund Declaration of Trust shall
                not
                apply so as to require the Trustees to declare any distribution in
                contravention of the terms of the Privatization Agreement or prevent
                the
                Trustees from declaring any distribution that is contemplated by
                the terms
                of the Privatization Agreement;

            

    

     

    
      	
              3.

            	
              Any
                two trustees of the Fund be and are hereby authorized and directed
                to
                execute on behalf of the Fund and to deliver and to cause to be delivered,
                all such documents, agreements and instruments and to do or cause
                to be
                done all such other acts and things as they shall determine to be
                necessary or desirable in order to carry out the intent of the foregoing
                resolutions and the matters authorized thereby, such determination
                to be
                conclusively evidenced by the execution and delivery of such documents,
                agreements or instruments or the doing of any such act or
                thing;

            

    

     

    
      	
              4.

            	
              Notwithstanding
                that this resolution has been passed by the Unitholders, the board
                of
                trustees of the Fund, are authorized, without further notice to or
                approval of the Unitholders: (a) to amend the Privatization Agreement
                to
                the extent permitted by the Privatization Agreement; and/or (b) to
                terminate the Privatization Agreement and to not proceed with the
                Transaction to the extent permitted by the Privatization Agreement;
                and

            

    

     

    
      	
              5.

            	
              All
                capitalized terms not otherwise defined in this Special Resolution
                have
                the meanings ascribed thereto in the Information
                Circular.

            

    

     

    

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    EXHIBIT
      “A” TO SCHEDULE A

     

    AMENDMENTS
      TO FUND DECLARATION OF TRUST

     

    Section
      1.1. – Definitions shall be amended to include the
      following:

     

    “Closing
      Date” has the meaning ascribed thereto in the Privatization
      Agreement;

     

    “Final
      Redemption” means the redemption of all outstanding Trust Units in
      consideration of payment of the Unit Redemption Price per Trust
      Unit;

     

    “Final
      Redemption Date” means July 12, 2007 or such other date as agreed
      to in writing by the parties to the Privatization Agreement;

     

    “Privatization
      Agreement” means the privatization agreement dated May 25, 2007 between
      CanWest, the Intermediary Trust, the General Partner, the Partnership and the
      Trust, as amended from time to time in accordance with its
      terms.

     

    “Unit
      Redemption Price” has the meaning ascribed thereto in the Privatization
      Agreement;

     

    “Transaction”
      means the transactions contemplated in the Privatization Agreement;
and

     

    “Trustee”
      means a person who is, in accordance with the provisions hereof, a trustee
      of
      the Trust at that time, including without limitation so long as he she or it
      remains a trustee, and “Trustees” means, at any time, all of
      the persons, each of whom is at that time a Trustee.

     

    Section
      6.6 – Cancellation of all Redeemed Trust Units shall be deleted and
      replaced with the following:

     

    Section
      6.6 – Redemption of Trust Units by the Trust

     

    (a)           With
      the intent that the Trust be wound-up in accordance with section 14.2, the
      Trust
      shall complete the Final Redemption, without further act or formality, on the
      Final Redemption Date.

     

    (b)           The
      Trust shall cause to be forwarded a cheque by first class mail or a wire
      transfer in Canadian currency representing the Unit Redemption Price required
      to
      be made to each Trust Unitholder pursuant to Section 6.6(a).  Payments
      made by the Trust of the applicable Unit Redemption Price are conclusively
      deemed to have been made upon the mailing of a cheque in a postage prepaid
      envelope addressed to the Trust Unitholder unless such cheque is dishonoured
      upon presentment or upon transmission of a wire transfer, as
      applicable.  Upon such payment, the Trust shall be discharged from all
      liability to the former Trust Unitholder in respect of the Trust Units so
      redeemed.  Under no circumstances will interest be paid to any holder
      on any payment to be made hereunder, regardless of any delay in making such
      payment.

     

    (c)           The
      Trust and its agents shall be entitled to deduct and withhold from any
      consideration payable to any Trust Unitholder as a consequence of the
      Final

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    Redemption,
      such amounts as the Trust or any agent is required or permitted to deduct and
      withhold with respect to such payment under the Tax Act, the Code or any other
      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
      Trust Unitholder in respect of which such deduction and withholding was made,
      provided that such withheld amounts are actually remitted to the appropriate
      taxing authority.

     

    (d)           Where
      the Trust redeems Trust Units in connection with the Final Redemption on the
      Final Redemption Date, the Trustees may, in their sole discretion, designate
      to
      the Trust Unitholders any income or capital gain realized by the Trust as a
      result of the Transaction and paid or made payable to the Trust Unitholders
      upon
      the redemption of their Trust Units.

     

    Section
      6.7 – Cancellation of all Redeemed Trust Units shall be added and read
      as follows:

     

    All
      Trust Units that are redeemed under this Article 6 shall be cancelled as of
      12:01 a.m.. on the Final Redemption Date and such Trust Units shall no longer
      be
      outstanding and shall not be reissued.

     

    Section
      7.1 – Number of Trustees shall be replaced with the
      following:

     

    There
      shall be at all times no fewer than one (1) and no more than ten (10) Trustees,
      with the number of Trustees from time to time within such range being fixed
      by
      the Trustees; provided that until otherwise so determined, the number of
      Trustees shall be one (1).

     

    Section
      7.6 – Quorum shall be deleted and replaced with the
      following:

     

    The
      quorum for the transaction of business at any meeting of the Trustees shall
      consist of a majority of the number of Trustees then holding office, and,
      notwithstanding any vacancy among the number of Trustees, a quorum of Trustees
      may exercise all of the powers of the Trustees. In the event that only one
      Trustee has been appointed in accordance with this Declaration of Trust, a
      quorum shall consist of one Trustee.

     

    Section
      8.1 — Qualification of Trustees shall be amended to delete “(c) a person who is
      not an individual” as being disqualified from being a Trustee of the
      Trust;

     

    The
      second paragraph of section 8.5 – Ceasing to Hold Office shall be
      deleted and replaced with the following:

     

    A
      resignation of a Trustee becomes effective at the time a written resignation
      is
      sent to the Trust, or at the time specified in the resignation, whichever is
      later.

     

    Section
      11.2 – Notification of Amendment shall be deleted and replaced with the
      following:

     

    As
      soon as shall be practicable after the making of any amendment without the
      consent of Trust Unitholders pursuant to this Article 11, the Trustees shall
      furnish written notification of the substance of such amendment to each Trust
      Unitholder.  For greater certainty, any amendments to the Declaration
      of Trust made with the consent of Trust Unitholders by Special Resolution shall
      not require notification under this Section 11.2;

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    Section
      14.2 – Termination with the Approval of the Trust Unitholders shall be
      deleted and replaced with the following:

     

    Section
      14.2 – Termination with the Approval of the Trust Unitholders; Termination
      Following the Final Redemption Date

     

    Except
      in respect of the Final Redemption, the Trust Unitholders may vote by Special
      Resolution to terminate the Trust at any meeting of Trust Unitholders duly
      called by the Trustees for the purpose of considering termination of the
      Trust.  Following the approval of such termination, the Trustees shall
      commence to wind up the affairs of the Trust. With respect to the Final
      Redemption, the Trust may be terminated as and when the Trustees in their sole
      discretion may determine following the procedures in Sections 14.8 and 14.9
      hereof.

     

    Section
      14.8 – Responsibility of the Trustees after Sale and Conversion shall
      be deleted replaced with the following:

     

    Section
      14.8 – Responsibility of the Trustees after Sale and
      Conversion

     

    Except
      in respect of the proceeds from the Transaction received on the Closing Date,
      the Trustees shall not invest the proceeds of any sale of investments or other
      assets or cash forming part of the Trust Assets after the date referred to
      in
      Section 14.3 except in a current account in a Canadian chartered bank and,
      after
      such sale, the sole obligation of the Trustees under this Declaration of Trust
      shall be to hold such proceeds or assets in trust for distribution under Section
      14.6.  With respect to the proceeds from the Transaction received on
      the Closing Date, the Trustees shall invest such proceeds in a current account,
      which may be non-interest bearing, in a Canadian chartered bank until the Final
      Redemption Date.

     

    Section
      14.9 – Procedures for Termination Following the Final Redemption Date
      shall be added and read as follows:

     

    Section
      14.9 – Procedures for Termination Following the Final Redemption
      Date

     

    Following
      the Final Redemption Date and after the date on which the Trustees determine
      to
      commence to wind-up the affairs of the Trust, the Trustees shall undertake
      no
      activities except for those which, subject to their sole discretion, are for
      the
      purpose of winding-up the affairs of the Trust and, for this purpose, the
      Trustees shall continue to be vested with and may exercise all or any of the
      powers conferred upon the Trustees under this Declaration of
      Trust.

     

    Section
      16.15 — Authorization of Trustee shall be added and read as
      follows:

     

    Section
      16.15 — Authorization of Trustee

     

    Any
      Trustee is authorized, without further notice to or approval of the Trust
      Unitholders, to approve such other amendments to this Declaration of Trust
      as
      are in his, her or its discretion necessary or desirable in order to permit
      the
      Final Redemption and as

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    otherwise
      may be necessary or desirable in order to give effect to the Transaction and
      the
      Privatization Agreement.

     

    

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    SCHEDULE
      B

     

    FORM
      OF INDEMNITY AGREEMENT

     

    TO:           [Name
      of Trustee]

     

    [address]

     

    WHEREAS[Name
      of Trustee] (the “Indemnified Person”) is a trustee of
[CanWest MediaWorks Income Fund/CWMW Trust] (the
“[Fund/Trust]”) and a director
      of CanWest MediaWorks (Canada)
      Inc. (“GP”) and/or a director or officer of any of their
      respective subsidiaries or any subsidiary of the Limited
      Partnership;

     

    AND
      WHEREAS the Indemnified Person has the benefit of an indemnity and the
      Indemnified Person and CanWest MediaWorks Limited Partnership (the “Limited
      Partnership”) are desirous of setting out more fully the nature
      thereof;

     

    NOW
      THEREFORE, in consideration of the Indemnified Person acting as a
      trustee of the [Fund/Trust] and a director of GP and/or a
      director or officer of any of their respective subsidiaries or any subsidiary
      of
      the Limited Partnership and for other good and valuable consideration (the
      receipt and sufficiency of which is hereby acknowledged by the Limited
      Partnership), the Limited Partnership hereby undertakes and agrees to indemnify
      the Indemnified Person upon and subject to the terms of this Indemnity
      Agreement:

     

    
      	
              1.

            	
              Except
                as otherwise provided in this Agreement, to the maximum extent permitted
                by law, the Limited Partnership shall indemnify and hold harmless
                the
                Indemnified Person from and against any and all liabilities, obligations,
                losses, damages, penalties, actions, suits, costs, expenses or
                disbursements of any kind or nature whatsoever which may be imposed
                on,
                incurred by, or asserted against the Indemnified Person by reason
                of the
                Indemnified Person being or having been a trustee of
                the [Fund/Trust] and/or a director of GP and/or a
                director or officer of any of their respective subsidiaries or any
                subsidiary of the Limited Partnership, provided that the Indemnified
                Person acted honestly and in good faith with a view to the best interests
                of the [Fund/Trust] and/or the Limited Partnership and/or
                their respective subsidiaries, as applicable, and in the case of
                a
                criminal or administrative action or proceeding that is enforced
                by a
                monetary penalty, where the Indemnified Person had reasonable grounds
                for
                believing that his or her conduct was
                lawful.

            

    

     

    
      	
              2.

            	
              Without
                limiting the generality of the foregoing, to the maximum extent permitted
                by law, the Limited Partnership
                shall:

            

    

     

    
      	
               

            	
              (a)

            	
              indemnify
                and save harmless the Indemnified Person from and against all costs,
                charges, expenses, judgments, fines and amounts paid in settlement
                of an
                action provided that no settlement shall be effective without the
                Limited
                Partnership’s prior written consent, acting reasonably, or in satisfaction
                of a judgment actually  incurred by the Indemnified Person in
                connection with any threatened, pending or completed action, suit
                or
                proceeding, whether civil, criminal, administrative, or investigative,
                and
                whether formal or informal, to which the Indemnified Person is made
                a
                party or may be liable for by reason of the Indemnified Person being
                orhaving been a trustee of the [Fund/Trust]
                and/or a director of GP and/or a director or officer of
                any of
                their respective subsidiaries or any subsidiary of the Limited
                Partnership, and

            

    

     

    
      	
               

            	
              (b)

            	
              undertake
                to seek the approval of a court, if required, to indemnify and save
                harmless the Indemnified Person from and against all costs, charges,
                expenses, judgments, fines and amounts paid in settlement of an action
                or
                in satisfaction of a judgment actually incurred by the Indemnified
                Person
                in connection with any threatened, pending or completed action, suit
                or
                proceeding, whether civil, criminal, administrative, or investigative,
                and
                whether formal or informal, in respect of any action, suit or proceedings
                by or on behalf of the [Fund/Trust] and/or GP or any of
                their respective subsidiaries or any subsidiary of the Limited Partnership
                to procure a judgment in its favour to which the Indemnified Person
                is
                made a party or may be liable for by reason of the Indemnified Person
                being or having been a trustee of the [Fund/Trust] and/or
                a director of GP and/or a director or officer of any of their respective
                subsidiaries or any subsidiary of the Limited Partnership, provided
                that
                the Indemnified Person fulfils the conditions set out in Section
1.

            

    

     

    
      	
              3.

            	
              For
                the purposes of any determination pursuant to Sections 1 and 2 hereof,
                the
                Indemnified Person shall be deemed, subject to compelling evidence
                to the
                contrary, to have fulfilled the conditions set out in Section 1, and the Limited Partnership will
                have the
                burden of establishing that the Indemnified Person did not fulfil
                such
                conditions.  The knowledge and/or actions or failure to act of
                any other trustee, director, officer or agent of the
                [Fund/Trust], GP or any of their respective subsidiaries
                or any subsidiary of the Limited Partnership or any other entity
                shall not
                be imputed to the Indemnified Person for the purposes of determining
                the
                right to indemnification under this Indemnity
                Agreement.

            

    

     

    
      	
              4.

            	
              The
                termination of a proceeding by judgment, order, settlement, conviction,
                or
                upon a plea of guilty or its equivalent is not, of itself, determinative
                that the Indemnified Person did not fulfill the conditions set out
                in
                Section 1.

            

    

     

    
      	
              5.

            	
              The
                Indemnified Person shall give notice in writing to the Limited Partnership
                as soon as practicable upon being served with any
                statement of claim, writ, notice of motion,
                indictment, subpoena, investigation order or other document commencing,
                threatening or continuing any claim involving the Indemnified Person
                which
                may result in a claim for indemnification under this Indemnity Agreement,
                and the Limited Partnership agrees to give the Indemnified Person
                notice
                in writing as soon as practicable upon it being served with any statement
                of claim, writ, notice of motion, indictment, subpoena, investigation
                order or other document commencing or continuing any claim involving
                the
                Indemnified Person.  Such notice shall include a description of
                the claim or threatened claim, a summary of the facts giving rise
                to the
                claim or threatened claim and, if possible, an estimate of any potential
                liability arising under the claim or threatened claim. Failure by
                the
                Indemnified Person to so notify Limited Partnership shall not relieve
                the
                Limited Partnership from liability under this Indemnity Agreement
                except
                and only to the extent that the failure to notify materially prejudices
                the Limited Partnership.

            

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

    
      	
              6.

            	
              The
                Limited Partnership shall, at the request of the Indemnified Person,
                advance to the Indemnified Person sufficient funds, or arrange to
                pay on
                behalf of or reimburse the Indemnified Person for any costs, charges
                or
                expenses reasonably incurred by the Indemnified Person in investigating,
                defending, appealing, preparing for, providing evidence in or instructing
                and receiving the advice of the Indemnified Person’s counsel or other
                professional advisors in regard to any claim or other matter for
                which the
                Indemnified Person may be entitled to an indemnity or reimbursement
                under
                this Indemnity Agreement, and such amounts shall be treated as a
                non-interest bearing advance or loan to the Indemnified Person, pending
                approval of the Limited Partnership or the court (if required), to
                the
                payment thereof as an indemnity.  In the event it is ultimately
                determined by a court of competent jurisdiction that the Indemnified
                Person did not fulfil the conditions set out in section 1 above,
                or that
                the Indemnified Person was not entitled to be fully so
                indemnified, such loan or advance, or the appropriate portion thereof
                shall, upon written notice of such determination being given by the
                Limited Partnership to the Indemnified Person detailing the basis
                for such
                determination, be repayable on demand and shall bear interest from
                the
                date of such notice at the prime rate prescribed from time to time
                by The Bank of Nova
                Scotia.

            

    

     

    
      	
              7.

            	
              The
                Limited Partnership hereby agrees to reimburse the Indemnified Person
                for
                all taxes payable by the Indemnified Person under the taxing laws
                of any
                jurisdiction, should the reimbursement of costs, charges and expenses
                under this Indemnity Agreement, including this Section 7, constitute
                a
                taxable benefit to the Indemnified
                Person.

            

    

     

    
      	
              8.

            	
              The
                Indemnification provided by this Indemnity Agreement shall not be
                deemed
                exclusive of any other rights to which the Indemnified Person may
                be
                entitled under any statute, by-law, agreement, vote of shareholders
                or
                otherwise, both as to actions in his or her official capacity and
                as to
                actions in another capacity while holding such office, and shall
                continue
                after he or she has ceased to be a trustee of the
                [Fund/Trust] and/or a director of GP and/or a director or
                officer of any of their respective subsidiaries or any subsidiary
                of the
                Limited Partnership.

            

    

     

    
      	
              9.

            	
              Any
                section, subsection or subdivision or provision of this Indemnity
                Agreement which is or becomes illegal, invalid or unenforceable shall
                be
                severed from this Indemnity Agreement and be ineffective to the extent
                of
                such illegality, invalidity or unenforceability and shall not affect
                or
                impair the remaining provisions
                thereof.

            

    

     

    
      	
              10.

            	
              The
                Limited Partnership hereby waives any right to set off any and all
                existing and future claims against any amounts payable to the Indemnified
                Person hereunder, and agrees to pay such amounts payable hereunder
                regardless of any claim which may be asserted by or on behalf of
                the
                Limited Partnership against the Indemnified
                Person.

            

    

     

    
      	
              11.

            	
              In
                connection with any proceeding in respect of which the Indemnified
                Person
                may be entitled to be indemnified hereunder, the Limited Partnership
                agrees to cooperate in defending the Indemnified Person against such
                proceeding consistent with its obligations under this Indemnity Agreement
                and shall be entitled to control of the defence of any civil claims
                for
                which indemnity is sought with counsel of its choosing, acting
                reasonably.  The Indemnified Party agrees to cooperate fully in
                such defence including, without limitation, the provision of documents,
                attending examinations for discovery,making affidavits, meeting with
                counsel, testifying and divulging to the Limited Partnership all
                information reasonably requested to defend or prosecute the
                claims.

            

    

     

    
      	
              12.

            	
              This
                Indemnity Agreement and the obligations of the Limited Partnership
                hereunder will not be affected, discharged, impaired, mitigated or
                released by reason of any bankruptcy, insolvency, receivership or
                other
                similar proceeding of creditors of the Limited
                Partnership.

            

    

     

    
      	
              13.

            	
              This
                Indemnity Agreement shall be effective as of the date
                hereof.

            

    

     

    
      	
              14.

            	
              This
                Indemnity Agreement may be executed by the parties in counterparts
                and may
                be executed and delivered by facsimile or electronic mail and all
                such
                counterparts and facsimiles together shall constitute one and the
                same
                agreement.

            

    

     

    
      	
              15.

            	
              This
                Indemnity Agreement shall be deemed to have been made in and shall
                be
                construed in accordance with the laws of the Province of Ontario
                and the
                federal laws of Canada applicable therein and the Limited Partnership
                hereby unconditionally attorns to the laws of such jurisdiction and
                to the
                courts of the Province of Ontario.

            

    

     

    
      	
              16.

            	
              This
                Indemnity Agreement and the benefits and obligations of all covenants
                herein contained will be binding upon and enure to the benefit of
                the
                Limited Partnership, its successors and assigns, and the Indemnified
                Person, his or her heirs and personal or other legal
                representatives.  If the Limited Partnership or any of its
                successors or assigns shall at any time prior to the later of: (i)
                six
                years from the date hereof; and (ii) the date on which any outstanding
                claims against the Indemnified Persons for which indemnification
                has been
                sought under the terms hereof have been fully and finally resolved,
                have
                net realizable assets of less than $60 million, then the Limited
                Partnership and CanWest MediaWorks Inc. shall make proper provision
                so
                that an entity with net realizable assets of not less than
                $60 million shall assume all of the obligations of the Limited
                Partnership set forth in this Indemnity Agreement and for greater
                certainty, the foregoing obligation shall terminate on the last day
                of the
                foregoing period.

            

    

     

    
      	
              17.

            	
              The
                obligations under this Indemnity Agreement shall be binding upon
                the
                Limited Partnership and recourse may be had to the partnership property
                of
                the Limited Partnership but not personally binding upon any of the
                directors, officers, limited partners, employees or agents of the
                Limited
                Partnership and no resort shall be had to nor redress, recourse or
                satisfaction sought from the private property of any such
                parties.

            

    

     

    
      	
              18.

            	
              This
                agreement shall be effective when executed by both the Limited Partnership
                and the Indemnified Person.

            

    

     

    
      	
              19.

            	
              Any
                notice, consent or approval required or permitted to be given in
                connection with this Indemnity Agreement (in this Section referred
                to as a
                “Notice”) shall be in writing and shall be sufficiently given if delivered
                (whether in person, by courier service or other personal method of
                delivery), or if transmitted by facsimile or
                e-mail:

            

    

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

    
      	
              (a)

            	
              if
                to the Limited Partnership:

            

    

     

    1450
      Don
      Mills Road

    Toronto,
      ON   M3B 2X7

     

    Attention:                                President
      and Chief Executive Officer

     

    Fax
      number:                                (416)
      446-5423

     

    
      	
               

            	
              (b)

            	
              if
                to Indemnified Person:

            

    

     

    l

     

    Attention:                                l

    Fax
      number:                                l

     

    Any
      Notice delivered or transmitted to a party as provided above shall be deemed
      to
      have been given and received on the day it is delivered or transmitted, provided
      that it is delivered or transmitted on a business day prior to 5:00 p.m. local
      time in the place of delivery or receipt.  However, if the Notice is
      delivered or transmitted after 5:00 p.m. local time in the place of receipt
      or
      if such day is not a business day in the place of receipt then the Notice shall
      be deemed to have been given and received on the next business day in the place
      of receipt.

     

    Any
      party
      may, from time to time, change its address by giving Notice to the other parties
      in accordance with the provisions of this Section 19.

     

    

     

    DATED
      this ______ day of ______________, 2007.

     

    

     

    
      	 	 	
              CANWEST
                MEDIAWORKS LIMITED PARTERNSHIP, by its general partner, CANWEST MEDIAWORKS
                (CANADA) INC.

            
	
              By:

            	 
	 	
              Name:
                l

            
	 	
              Title:
                l

            
	
              By:

            	 
	 	
              Name:
                l

            
	 	
              Title:
                l

            

    

    

     

    
      	 	 	
              CANWEST
                MEDIAWORKS INC.

            
	
              By:

            	 
	 	
              Name:
                l

            
	 	
              Title:
                l

            
	
              By:

            	 
	 	
              Name:
                l

            
	 	
              Title:
                l

            

    

    

     

    
      	 	 	
              INDEMNIFIED
                PERSON

            
	
              By:

            	 
	 	
              Name:
                l

            
	 	
              Title:
                l

            

    

    

     

    

     

    
      
        
        

      

      
        33

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