Document:

EXHIBIT 10.6.1

                             Dated 28 January 2004

                          GRANITE MORTGAGES 04-1 plc
                               as Current Issuer

                   LAW DEBENTURE CORPORATE SERVICES LIMITED
                 as Current Issuer Corporate Services Provider

                               NORTHERN ROCK PLC
                                 as Originator

                       GRANITE FINANCE HOLDINGS LIMITED

                                 GPCH LIMITED

                                    - and -

               THE LAW DEBENTURE INTERMEDIARY CORPORATION p.l.c.
                               as Share Trustee

              --------------------------------------------------

                      ISSUER CORPORATE SERVICES AGREEMENT

               ------------------------------------------------

                          SIDLEY AUSTIN BROWN & WOOD
                            1 THREADNEEDLE STREET
                               LONDON EC2R 8AW
                           TELEPHONE 020 7360 3600
                           FACSIMILE 020 7626 7937

<PAGE>

                                  CONTENTS

1.    Definitions and Interpretation.......................................1

2.    Nomination of Directors..............................................2

3.    Returns..............................................................3

4.    Administrative Services..............................................3

5.    Confidentiality......................................................4

6.    Remuneration.........................................................5

7.    Non Petition and Limited Recourse....................................5

8.    Termination..........................................................6

9.    Non-Assignment.......................................................7

10.   Non-exclusive........................................................7

11.   Indemnity............................................................7

12.   Governing Law and Jurisdiction, Appropriate Form.....................8

13.   Contracts (Rights of Third Parties) Act 1999.........................8

14.   Notices..............................................................8

                                       i
<PAGE>

THIS AGREEMENT is made on 28 January 2004

BETWEEN:

(1)   GRANITE MORTGAGES 04-1 plc (registered number 4959572) a public limited
      company incorporated under the laws of England and Wales whose
      registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as
      the Current Issuer;

(2)   LAW DEBENTURE CORPORATE SERVICES LIMITED, (registered number 3388362)
      whose registered office is at Fifth Floor, 100 Wood Street, London EC2V
      7EX in its capacity as the Current Issuer Corporate Services Provider;

(3)   NORTHERN ROCK PLC (registered number 3273685) whose registered office is
      at Northern Rock House, Gosforth, Newcastle upon Tyne NE3 4PL as
      Northern Rock;

(4)   GRANITE FINANCE HOLDINGS LIMITED (registered number 4127787) whose
      registered office is at Fifth Floor, 100 Wood Street, London EC2V 7EX as
      Holdings;

(5)   GPCH LIMITED (registered number 4128437) whose registered office is at
      Fifth Floor, 100 Wood Street, London EC2V 7EX as GPCH and, together with
      Holdings and the Current Issuer, the "SPV Companies" and each a "SPV
      Company"); and

(6)   THE LAW DEBENTURE INTERMEDIARY CORPORATION p.l.c. (registered number
      1525148) whose registered office is at Fifth Floor, 100 Wood Street,
      London EC2V 7EX in its capacity as Share Trustee.

WHEREAS:

The Current Issuer Corporate Services Provider has agreed with the other
parties hereto to provide certain corporate services as more fully described
below.

IT IS HEREBY AGREED AS FOLLOWS:

1.    Definitions and Interpretation

      The provisions of:

      (a)   the Master Definitions Schedule as amended and restated by (and
            appearing in Appendix 1 to) the Master Definitions Schedule
            Seventh Amendment and Restatement Deed made on 26 January 2004
            between, among others, the Seller, Funding and the Mortgages
            Trustee, and

      (b)   the Issuer Master Definitions Schedule signed for the purposes of
            identification by Sidley Austin Brown & Wood and Allen & Overy on
            28 January 2004,

      (as the same have been and may be amended, varied or supplemented from
      time to time with the consent of the parties hereto) are expressly and
      specifically incorporated into and shall apply to this Agreement. The
      Issuer Master Definitions Schedule specified above shall prevail to the
      extent that it conflicts with the Master Definitions Schedule.

                                      1
<PAGE>

2.    Nomination of Directors

      (a)   For so long as this Agreement remains in force and subject as set
            out in paragraph (b) below:

            (i)   Northern Rock will be entitled to, and shall, nominate one
                  person willing to serve in the capacity of director for each
                  SPV Company (and Northern Rock shall be deemed to have so
                  nominated Keith McCallum Currie as its first nominee in such
                  capacity) and nothing herein shall require Northern Rock to
                  nominate the same person as director for each SPV Company;
                  and

            (ii)  the Current Issuer Corporate Services Provider will be
                  entitled to, and shall, nominate two persons willing to
                  serve in the capacity of director for each SPV Company (and
                  shall be deemed to have so nominated L.D.C. Securitisation
                  Director No. 1 Limited and L.D.C. Securitisation Director
                  No. 2 Limited as its first nominees in such capacity) and
                  nothing herein shall prevent the Current Issuer Corporate
                  Services Provider from nominating itself as a corporate
                  director for each SPV Company or require the Current Issuer
                  Corporate Services Provider to nominate the same two persons
                  as director for each SPV Company.

      (b)   In relation to any person nominated or deemed to be nominated
            under (a) above, whichever of Northern Rock or the Current Issuer
            Corporate Services Provider nominated that person is referred to
            below as that person's "appointor".

      (c)   In relation to any person nominated or deemed to be nominated
            under (a) above as a director of any SPV Company, that person is
            referred to below as a "Director".

      (d)   Each appointor hereby confirms to the other that, if the person
            nominated or deemed to be nominated by it should resign or retire
            or for any other reason cease to act as Director of any SPV
            Company, it will promptly:

            (i)   procure that such Director shall acknowledge in writing that
                  he has no claim of any nature whatsoever against the SPV
                  Companies;

            (ii)  nominate another person willing to act in the relevant
                  capacity; and

            (iii) procure the consent of that other person to act in that
                  capacity.

      (e)   Each appointor shall procure that each of the persons respectively
            nominated or deemed to be nominated by it from time to time as
            provided above accepts the relevant appointment and acts in the
            relevant capacity without fee or remuneration from any SPV Company
            save that nothing in this Agreement shall prejudice any right to
            remuneration on the part of the Current Issuer Corporate Services
            Provider under Clause 6 hereof.

      (f)   The Share Trustee undertakes and agrees subject to its duties and
            obligations as Share Trustee under the Share Trust Deed dated 19
            March 2001 that it shall exercise its rights as a shareholder of
            Holdings and all rights and powers

                                      2
<PAGE>

            vested in it under the Articles of Association of each SPV Company
            so as to procure that the Board of Directors of each SPV Company
            comprises at all times one nominee of Northern Rock (provided that
            Northern Rock shall have nominated such person to such office) and
            two nominees of the Current Issuer Corporate Services Provider as
            provided under paragraph (a) above.

      (g)   The obligations of the Current Issuer Corporate Services Provider
            under this Agreement and the obligations of each SPV Company under
            the Transaction Documents are, respectively, solely the corporate
            obligations of the Current Issuer Corporate Services Provider and
            the SPV Companies. No recourse shall be had in respect of any
            obligation or claim arising out of or based upon this Agreement or
            any of the Transaction Documents against any employee, officer or
            director of the Current Issuer Corporate Services Provider or the
            SPV Companies save where the claim, demand, liability, cost or
            expense in connection therewith arises from the negligence, wilful
            default or breach of duty of such employee, officer or director of
            the Current Issuer Corporate Services Provider or the SPV
            Companies.

3.    Returns

      Northern Rock undertakes that the person for the time being nominated by
      it as Director of a SPV Company pursuant to Clause 2 shall ensure,
      insofar as he or she is able having regard to the duties imposed on
      directors by law, that (a) all registers, filings and returns required
      to be made by such SPV Company are kept and made in accordance with the
      relevant provisions of English law or the rules of any relevant UK
      regulatory authority and (b) such SPV Company is otherwise in compliance
      with the Companies Act 1985.

4.    Administrative Services

4.1   The Current Issuer Corporate Services Provider shall provide the
      following services (the "Services"):

      (a)   a registered office and administrative office for each SPV
            Company;

      (b)   the services of three persons who will, if required, accept office
            as directors of each SPV Company;

      (c)   the services of a secretary to each SPV Company to perform all the
            duties properly required of a secretary by the directors of such
            SPV Company and the Companies Act 1985 (the "Law");

      (d)   the arrangement of meetings of directors and shareholders of each
            SPV Company in the UK and the preparation of minutes of such
            meetings;

      (e)   the arrangement of annual meetings and any other meetings of the
            shareholders of each SPV Company;

      (f)   the maintenance of the statutory books of each SPV Company and any
            other books and records required by law or ordinarily required by
            an English company and the preparation and issue of share
            certificates;

                                      3
<PAGE>

      (g)   the preparation and submission of any other documents required by
            law to be prepared or filed by each SPV Company including all
            filings to be made with the Registrar of Companies;

      (h)   the provision of book keeping services and preparation of each SPV
            Company's accounts based upon the ledgers and records maintained
            by the Current Issuer Cash Manager;

      (i)   the instruction of each SPV Company's auditors to prepare the
            annual audited financial statements; and

      (j)   the execution of all such agreements, documents and undertakings
            as shall be necessary in connection with the business of each SPV
            Company if so authorised by a valid resolution of the Board of
            Directors of each SPV Company;

4.2   The Current Issuer Corporate Service Provider's duties:

      (a)   The Current Issuer Corporate Service Provider shall at all times
            act in accordance with all reasonable and proper directions,
            orders and instructions given by the Board of Directors of each
            SPV Company.

      (b)   The Current Issuer Corporate Service Provider shall not knowingly
            do or knowingly omit to do anything which would constitute a
            breach of any provisions of the Memorandum and Articles of
            Association of each SPV Company or of any legally binding
            restrictions applying to each such SPV Company. This includes but
            is not limited to any legally binding restrictions applying to
            each SPV Company as a consequence of its being a party to the
            Transaction Documents.

5.    Confidentiality

5.1   The Current Issuer Corporate Services Provider shall not, and hereby
      undertakes to procure that each person nominated or deemed to be
      nominated by the Current Issuer Corporate Services Provider as Director
      of each SPV Company shall not (regardless of whether or not such person
      shall still be in office), at any time disclose to any person, firm or
      company whatsoever (other than the Share Trustee), and shall treat as
      confidential, any information relating to the business, finances or
      other matters of Northern Rock or any SPV Company which such Director
      may have obtained as a result of (in the case of the Current Issuer
      Corporate Services Provider) its role under this Agreement as a Director
      or as employer or principal to any Director or (in the case of any
      Director) such Director's position as Director of each SPV Company, or
      otherwise have become possessed of, and the Current Issuer Corporate
      Services Provider shall use its best endeavours to prevent any such
      disclosure provided however that the provisions of this Clause shall not
      apply:

      (a)   to the disclosure of any information already known to the
            recipient;

      (b)   to the disclosure of any information which is or becomes public
            knowledge otherwise than in breach of this Clause;

                                      4
<PAGE>

      (c)   to any extent that disclosure is required pursuant to any law or
            order of any court or pursuant to any direction, request or
            requirement (whether or not having the force of law) of any
            central bank or any governmental or other regulatory or taxation
            authority (including, without limitation, any official bank
            examiners or regulators or the London Stock Exchange plc or any
            other applicable stock exchange);

      (d)   to the disclosure of any information to professional advisers or
            any of the Rating Agencies who receive the same under a duty of
            confidentiality;

      (e)   to the disclosure of any information with the consent of all the
            parties hereto; and

      (f)   to the disclosure of any information to the Note Trustee.

      and the Current Issuer Corporate Services Provider hereby agrees to
      indemnify and hold harmless Northern Rock and the SPV Companies for all
      losses, damages, expenses, costs, claims and charges arising from or
      caused by any disclosure of information by any of the Current Issuer
      Corporate Services Provider or any Director nominated or deemed to be
      nominated by it which disclosure is made contrary to the provisions of
      this Clause.

5.2   The obligations of the Current Issuer Corporate Services Provider under
      this Clause 5 shall survive the termination of this Agreement.

6.    Remuneration

      The Current Issuer Corporate Services Provider shall be entitled to
      remuneration for the services provided by it under this Agreement of an
      amount to be agreed between the SPV Companies, Northern Rock and the
      Current Issuer Corporate Services Provider (together with Value Added
      Tax thereon) which shall consist of remuneration for corporate services
      hereunder to be borne by the SPV Companies and payable quarterly on
      Payment Dates subject to and in accordance with the Current Issuer
      Priority of Payments. The remuneration to the Current Issuer Corporate
      Services Provider as set forth in this Clause shall apply only in
      respect of this Agreement and the transactions contemplated by the
      Transaction Documents, and the remuneration to the Current Issuer
      Corporate Services Provider in respect of any previous or subsequent
      transaction between the parties shall be as agreed in connection with
      such transaction.

7.    Non Petition and Limited Recourse

7.1   Each of the parties hereto hereby agrees that it shall not institute
      against any of the SPV Companies any winding-up, administration,
      insolvency or similar proceedings in any jurisdiction for so long as any
      sum is outstanding under the Notes of any Issuer or for two years plus
      one day since the last day on which any such sum was outstanding.

7.2   Each of the parties hereto agrees that notwithstanding any other
      provision of this Agreement or any other Transaction Document:

      (a)   in relation to GPCH and/or Holdings, any amount payable by GPCH or
            Holdings to any other party to this Agreement under this Agreement
            shall only

                                      5
<PAGE>

            be payable to the extent that GPCH or, as the case may be,
            Holdings has sufficient funds to pay such amount on such date; and

      (b)   in relation to the Current Issuer:

            (i)   only the Note Trustee may enforce the security created in
                  favour of the Note Trustee under the Current Issuer Deed of
                  Charge in accordance with the provisions thereof;

            (ii)  no sum due or owing to any party to this Agreement from or
                  by the Current Issuer under this Agreement shall be payable
                  by the Current Issuer except to the extent that the Current
                  Issuer has sufficient funds available or (following
                  enforcement of the Current Issuer Security) the Note Trustee
                  has realised sufficient funds from the Current Issuer
                  Security to pay such sum subject to and in accordance with
                  the relevant Current Issuer Priority of Payments and
                  provided that all liabilities of the Current Issuer required
                  to be paid in priority thereto or pari passu therewith
                  pursuant to such Current Issuer Priority of Payments have
                  been paid, discharged and/or otherwise provided for in full;
                  and

            (iii) it shall not take any steps for the purpose of recovering
                  any amount payable by the Current Issuer or enforcing any
                  rights arising out of this Agreement against the Current
                  Issuer otherwise than in accordance with the Current Issuer
                  Deed of Charge.

7.3   The provisions of Clause 6 of the Current Issuer Deed of Charge shall
      prevail in the event that and to the extent that they conflict with the
      provisions of this Clause 7.

8.    Termination

8.1   The appointment of the Current Issuer Corporate Services Provider
      hereunder in relation to each SPV Company shall terminate:

      (a)   upon the expiration of 90 days notice in writing given by the
            Current Issuer Corporate Services Provider or by the relevant SPV
            Company and provided that a substitute corporate services provider
            acceptable to the relevant SPV Company and Northern Rock has been
            appointed in relation to the relevant SPV Company on terms
            substantially the same as those set out in this Agreement and that
            such appointment will be effective not later than the date of the
            termination;

      (b)   immediately if:

            (i)   an order has been made or a resolution has been passed to
                  put the Current Issuer Corporate Services Provider into
                  liquidation (except a voluntary liquidation for the purpose
                  of reconstruction or amalgamation); or

            (ii)  the Current Issuer Corporate Services Provider has broken or
                  is in breach of any of the terms of this Agreement and shall
                  not have remedied such breach within 30 days after service
                  of notice requiring the same to be remedied; or

                                      6
<PAGE>

            (iii) the Current Issuer Corporate Services Provider becomes
                  insolvent; or

            (iv)  the Current Issuer Corporate Services Provider ceases or
                  threatens to cease to carry on its business or a substantial
                  part of its business or stops payment or threatens to stop
                  payment of its debts.

8.2   This agreement shall terminate automatically on the date falling 90 days
      after the later of the date on which the Mortgages Trust Deed terminates
      or the date on which all of the Current Issuer Secured Obligations have
      been discharged in full.

8.3   Termination of the appointment of the Current Issuer Corporate Services
      Provider under this Clause 8 shall be without prejudice to the rights of
      any party in respect of any antecedent claim against or breach of the
      terms of this Agreement by the Current Issuer Corporate Services
      Provider.

9.    Non-Assignment

      The rights and obligations of the parties hereto are personal and, save
      in the case of the Current Issuer in accordance with the Current Issuer
      Deed of Charge, shall not be capable of assignment.

10.   Non-exclusive

      The Current Issuer Corporate Services Provider and the Directors shall
      be at liberty to provide services of a like nature to any other persons
      it may think fit whether for its own account or that of any other
      person.

      Neither the Current Issuer Corporate Services Provider nor any other
      person affiliated with the Current Issuer Corporate Services Provider
      shall in consequence of the appointment of the Current Issuer Corporate
      Services Provider hereunder or in consequence of any transaction entered
      into by any SPV Company with the Current Issuer Corporate Services
      Provider be liable to account to the SPV Companies for any profits
      (whether disclosed or not) accruing to the Current Issuer Corporate
      Services Provider from or by virtue of any such transaction.

      The Current Issuer Corporate Services Provider shall be entitled to
      charge and receive remuneration in accordance with its usual charging
      policies for any legal advice initiated by and rendered to any SPV
      Company, subject, in the case of any SPV Company, to the limited
      recourse provisions set out in Clause 7.

11.   Indemnity

      Northern Rock undertakes to indemnify and hold harmless the Current
      Issuer Corporate Services Provider, the Directors and the Share Trustee
      against all actions, proceedings, accounts, claims or demands and any
      costs and expenses incurred in connection therewith which may be brought
      or made or threatened to be brought or made against either the Current
      Issuer Corporate Services Provider, the Directors or the Share Trustee
      in connection with the affairs of any SPV Company unless any such
      liability shall have arisen solely due to the fraud, wilful misconduct
      or gross negligence of the Current Issuer Corporate Services Provider,
      the Directors or the Share Trustee. This indemnity shall continue in
      force notwithstanding the termination of this Agreement.

                                      7
<PAGE>

12.   Governing Law and Jurisdiction, Appropriate Form

12.1  This Agreement is governed by, and shall be construed in accordance
      with, the laws of England and Wales.

12.2  Each of the parties hereto irrevocably agrees that the courts of England
      shall have jurisdiction to hear and determine any suit, action or
      proceeding, and to settle any disputes, which may arise out of or in
      connection with this Agreement and, for such purposes, irrevocably
      submits to the jurisdiction of such courts.

12.3  Each of the parties hereto irrevocably waives any objection which it
      might now or hereafter have to the courts of England being nominated as
      the forum to hear and determine any proceedings and to settle any
      disputes, and agrees not to claim that any such court is not a
      convenient or appropriate forum.

13. Contracts (Rights of Third Parties) Act 1999

      A person who is not a party to this Agreement may not enforce any of its
      terms under the Contracts (Rights of Third Parties) Act 1999, but this
      shall not affect any right or remedy of a third party which exists or is
      available apart from that Act.

14.   Notices

      Any notices to be given and any correspondence or communication to be
      delivered or forwarded pursuant to this Agreement shall be sufficiently
      served, delivered or forwarded if sent by prepaid airmail or by
      facsimile transmission and shall be deemed to be given (in the case of
      facsimile transmission at 10.00am on the next business day in the place
      of receipt following despatch) or (in the case of the post) three (3)
      days after the despatch thereof and shall be sent:

      (a)  in the case of the Current Issuer Corporate Services Provider, to
           its office specified against its name at the commencement of this
           Agreement, fax number 020 7606 0643, marked for the attention of
           Sharon Tyson;

      (b)  in the case of each SPV Company, to its office specified against
           its name at the commencement of this Agreement fax number 020 7606
           0643, marked for the attention of Sharon Tyson with a copy to
           Northern Rock to its office specified against its name at the
           commencement of this Agreement, fax number 0191 279 4694, marked
           for the attention of Keith Currie; and

      (c)  in the case of the Share Trustee, to its office specified against
           its name at the commencement of this Agreement fax number 020 7606
           0643, marked for the attention of Sharon Tyson.

IN WITNESS WHEREOF the parties hereto have executed this Agreement the date
first above written:

                                      8
<PAGE>

                               EXECUTION PAGE

<TABLE>
<CAPTION>
The Current Issuer

<S>                                      <C>
Executed by
GRANITE MORTGAGES 04-1 PLC
as follows:                                By
Signed for and on its behalf by one          ---------------------------------------
of its duly authorised                       for and on behalf of LDC Securitisation
attorneys/signatories                        Director No.1 Limited

                                         Name
                                             ----------------------------------------

The Current Issuer Corporate Services Provider

Executed by
LAW DEBENTURE CORPORATE
SERVICES LIMITED
as follows:                                By
Signed for and on its behalf by one          ----------------------------------------
of its duly authorised                       Duly Authorised Attorney/Signatory
attorneys/signatories
                                         Name
                                             ----------------------------------------

The Share Trustee

Executed by
LAW DEBENTURE INTERMEDIARY
CORPORATION PLC
as follows:                                By
Signed for and on its behalf by one          ----------------------------------------
of its duly authorised                       Duly Authorised Attorney/Signatory
attorneys/signatories
                                         Name
                                             ----------------------------------------

Holdings

Executed by
GRANITE FINANCE HOLDINGS LIMITED
as follows:                                By
Signed for and on its behalf by one          ----------------------------------------
of its duly authorised                       for and on behalf of LDC Securitisation
attorneys/signatories                        Director No.1 Limited

                                         Name
                                             ----------------------------------------

GPCH Limited

Executed by
GPCH LIMITED
as follows:                                By
Signed for and on its behalf by one          ----------------------------------------
of its duly authorised                       for and on behalf of LDC Securitisation
attorneys/signatories                        Director No.1 Limited

                                         Name
                                             ----------------------------------------

                                        9
<PAGE>

The Originator

Executed by
NORTHERN ROCK PLC
as follows:                                By
Signed for and on its behalf by one          ----------------------------------------
of its duly authorised                       Duly Authorised Attorney/Signatory
attorneys/signatories
                                         Name
                                             ----------------------------------------
</TABLE>

                                        10<PAGE>

                                                                  CONFORMED COPY
                                IMAX CORPORATION

                          9 5/8% SENIOR NOTES DUE 2010

                               PURCHASE AGREEMENT

                                                               November 19, 2003

CREDIT SUISSE FIRST BOSTON LLC,
  As Representative of the Several Purchasers,
    Eleven Madison Avenue,
      New York, N.Y. 10010-3629

Dear Sirs:

         1. Introductory. IMAX Corporation, a corporation incorporated under the
federal laws of Canada (the "COMPANY"), proposes, subject to the terms and
conditions stated herein, to issue and sell to the several initial purchasers
named in Schedule A hereto (the "PURCHASERS") U.S.$160,000,000 principal amount
of its 9 5/8% Senior Notes due 2010 (the "OFFERED SECURITIES") to be issued
under an indenture (the "INDENTURE"), dated as of the Closing Date (as defined
below), between the Company, the guarantors named therein (each, a "GUARANTOR,"
and collectively the "GUARANTORS") and U.S. Bank National Association, as
trustee (the "TRUSTEE"). The Offered Securities will be irrevocably and
unconditionally guaranteed (the "GUARANTEES") as to payment of principal,
premium, if any, interest and Special Interest (as defined in the Indenture), if
any, on a senior basis, jointly and severally by each of the Guarantors. The
United States Securities Act of 1933 is herein referred to as the "SECURITIES
ACT."

         The holders of the Offered Securities will be entitled to the benefits
of a Registration Rights Agreement to be dated December 4, 2003, among the
Company, the Guarantors and the Purchasers (the "REGISTRATION RIGHTS
AGREEMENT"), pursuant to which the Company agrees to file a registration
statement with the Securities and Exchange Commission (the "COMMISSION")
registering the resale of the Exchange Securities (as defined in the
Registration Rights Agreement), under the Securities Act.

         The Company and the Guarantors hereby agree with the several Purchasers
as follows:

         2. Representations and Warranties of the Company and the Guarantors.
The Company and each of the Guarantors severally represent and warrant to, and
agree with, the several Purchasers that:

                  (a) A preliminary offering circular and an offering circular
         relating to the Offered Securities to be offered by the Purchasers have
         been prepared by the Company. Such preliminary offering circular dated
         November 12, 2003 (the "PRELIMINARY OFFERING CIRCULAR") and offering
         circular (the "OFFERING CIRCULAR"), as supplemented as of the date of
         this Agreement, together with the documents incorporated by reference
         therein are hereinafter collectively referred to as the "OFFERING
         DOCUMENT". On the date of this Agreement, the Offering Document does
         not include any untrue statement of a material fact or omit to state
         any material fact necessary in order to make the statements therein, in
         the light of the circumstances under which they were made, not
         misleading. The preceding sentence does not apply to statements in or
         omissions from the Offering Document based upon written information
         furnished to the Company by any Purchaser through Credit Suisse

                                       1
<PAGE>

         First Boston LLC ("CSFB") specifically for use therein, it being
         understood and agreed that the only such information is that described
         as such in Section 7(b) hereof. Except as disclosed in the Offering
         Document, on the date of this Agreement, the Company's Annual Report on
         Form 10-K/A most recently filed with the Commission and all subsequent
         reports which have been filed by the Company with the Commission or
         sent to shareholders pursuant to the Securities Exchange Act of 1934
         (the "EXCHANGE ACT") do not include any untrue statement of a material
         fact or omit to state any material fact necessary to make the
         statements therein, in the light of the circumstances under which they
         were made, not misleading. Such documents, when they were filed with
         the Commission, conformed in all material respects to the requirements
         of the Exchange Act and the rules and regulations of the Commission
         thereunder.

                  (b) The Company has been duly amalgamated and is an existing
         corporation in good standing under the federal laws of Canada, with
         corporate power and authority to own its properties and conduct its
         business as described in the Offering Document; and the Company is duly
         qualified or registered to do business as a foreign corporation in good
         standing in all other jurisdictions in which its ownership or lease of
         property or the conduct of its business requires such qualification or
         registration, except where the failure to be so qualified or registered
         or to be in good standing would not reasonably be expected to have a
         material adverse effect on the condition (financial or other),
         business, properties or results of operations of the Company and its
         subsidiaries taken as a whole ("MATERIAL ADVERSE EFFECT").

                  (c) Each of the Guarantors has been duly incorporated or
         organized and is an existing corporation or other business
         organization, as the case may be, in good standing under the laws of
         the jurisdiction of its incorporation, with power and authority
         (corporate and other) to own its properties and conduct its business as
         described in the Offering Document; and each of the Guarantors is duly
         qualified to do business as a foreign corporation in good standing in
         all other jurisdictions in which its ownership or lease of property or
         the conduct of its business requires such qualification or
         registration, except where the failure to be so qualified or registered
         or to be in good standing would not reasonably be expected to have a
         Material Adverse Effect; all of the issued and outstanding capital
         stock or other ownership interests of each of the Guarantors has been
         duly authorized and, in the case of each Guarantor that is a
         corporation, validly issued and is fully paid and nonassessable; and
         the capital stock or other ownership interests of each Guarantor owned
         by the Company, directly or through subsidiaries, is owned free from
         liens, encumbrances and defects.

                  (d) The Indenture has been duly authorized by the Company; the
         Offered Securities have been duly authorized by the Company; and when
         the Offered Securities are delivered and paid for pursuant to this
         Agreement on the Closing Date (as defined below) and duly authenticated
         by the Trustee in accordance with the terms of the Indenture, the
         Indenture will have been duly executed and delivered by the Company,
         such Offered Securities will have been duly executed, issued and
         delivered and will conform in all material respects to the description
         thereof contained in the Offering Document and the Indenture and,
         assuming the due authentication of the Offered Securities by the
         Trustee, such Offered Securities will constitute valid and legally
         binding obligations of the Company, enforceable in accordance with
         their terms, subject, as to enforcement, as to the effect of any
         applicable bankruptcy, insolvency (including, without limitation, all
         laws relating to fraudulent transfers), reorganization, moratorium or
         similar laws affecting the enforcement of creditors' rights generally
         and subject to the effect of general principles of equity, including,
         without limitation, concepts of materiality, reasonableness, good faith
         and fair dealing (regardless of whether enforcement is considered in a
         proceeding in equity or at law).

                  (e) On the Closing Date, the Indenture will have been duly
         authorized by each Guarantor, and the Guarantee to be endorsed on the
         Offered Securities by each Guarantor will have been duly authorized by
         the applicable Guarantor. When the Offered Securities have been duly

                                       2
<PAGE>

         authorized, executed and authenticated in accordance with the Indenture
         and are delivered to and paid for by the Purchasers in accordance with
         the terms of this Agreement on the Closing Date and the Guarantees are
         endorsed on the Offered Securities, the Indenture will have been duly
         executed and delivered by each Guarantor, the Guarantee of each
         Guarantor endorsed on the Offered Securities will have been duly
         executed, issued and delivered by such Guarantor and the Indenture and
         the Guarantee will constitute valid and legally binding obligations of
         such Guarantor, enforceable in accordance with their terms, subject, as
         to enforcement, as to the effect of any applicable bankruptcy,
         insolvency (including, without limitation, all laws relating to
         fraudulent transfers), reorganization, moratorium or similar laws
         affecting the enforcement of creditors' rights generally and subject to
         the effect of general principles of equity, including, without
         limitation, concepts of materiality, reasonableness, good faith and
         fair dealing (regardless of whether enforcement is considered in a
         proceeding in equity or at law).

                  (f) No consent, approval, authorization, or order of, or
         filing with, any governmental agency or body or any court in Canada or
         the United States by the Company and the Guarantors is required for the
         consummation of the transactions contemplated by this Agreement and the
         Registration Rights Agreement in connection with the issuance and sale
         of the Offered Securities and the Guarantees, except (i) for those that
         have, as of the date hereof, been obtained or made, (ii) for any
         filings with Canadian securities regulatory authorities of trade
         reports and copies of any offering memorandum used to effect sales of
         the Offered Securities or Exchange Securities (as defined in the
         Registration Rights Agreement) on a private placement basis in Canada,
         (iii) as required under the Securities Act and the United States Trust
         Indenture Act of 1939, as amended (the "TRUST INDENTURE ACT"), in
         connection with the Registration Rights Agreement, (iv) as required
         under applicable state securities or blue sky laws and (v) where the
         failure to obtain such consent would not reasonably be expected to have
         a Material Adverse Effect.

                  (g) Except as disclosed in the Offering Document, under
         current Canadian federal and Ontario laws and regulations, all
         interest, principal, premium, if any, and other payments due or made on
         the Offered Securities may be paid by the Company to the holder thereof
         in United States dollars or Canadian dollars that may be converted into
         foreign currency and freely transferred out of Canada and no such
         payments made to holders thereof who are Holders as defined in the
         Offering Circular under the heading "Certain Federal Income Tax
         Considerations -- Canadian Federal Income Tax Considerations" will be
         subject to income, withholding or other taxes under the laws and
         regulations of Canada or Ontario and all such payments will otherwise
         be free and clear of any other Canadian federal or Ontario tax, duty,
         withholding or deduction and without the necessity of obtaining any
         Canadian federal or Ontario governmental authorization.

                  (h) The execution, delivery and performance of the Indenture,
         this Agreement and the Registration Rights Agreement by the Company and
         each of the Guarantors, and the issuance and sale of the Offered
         Securities and the Guarantees and compliance with the terms and
         provisions thereof will not result in a breach or violation of any of
         the terms and provisions of, or constitute a default under, (i) any
         statute, any rule, regulation or order of any governmental agency or
         body or any court, domestic or foreign, having jurisdiction over the
         Company or any Guarantor or any of their properties, (ii) any material
         agreement or instrument to which the Company or any such Guarantor is a
         party or by which the Company or any such Guarantor is bound or to
         which any of the properties of the Company or any such Guarantor is
         subject, or (iii) the charter or by-laws of the Company or any such
         Guarantor, except in the case of clauses (i) and (ii), where such
         breach, violation or default would not individually or in the
         aggregate, reasonably be expected to have a Material Adverse Effect,
         and the Company and each Guarantor has full power and authority to
         authorize, issue and sell the Offered Securities or the Guarantees, as
         applicable, as contemplated by this Agreement.

                                       3
<PAGE>

                  (i) This Agreement has been duly authorized, executed and
         delivered by the Company and, on the Closing Date, will have been duly
         ratified by each of the Guarantors.

                  (j) Except as disclosed in the Offering Document, the Company
         and its subsidiaries have good and marketable title to all real
         properties and all other properties and assets owned by them, in each
         case free from liens, encumbrances, mortgages, pledges, security
         interests, restrictions and defects that would materially affect the
         value thereof or materially interfere with the use made or to be made
         thereof by them, except as would not reasonably be expected to have a
         Material Adverse Effect; and except as disclosed in the Offering
         Document, the Company and its subsidiaries hold any leased real or
         personal property under valid and enforceable leases with no exceptions
         that would materially interfere with the use made or to be made thereof
         by them, except as would not reasonably be expected to have a Material
         Adverse Effect.

                  (k) The Company and its subsidiaries possess adequate
         certificates, authorities or permits issued by appropriate U.S.,
         Canadian and foreign governmental agencies or bodies necessary to
         conduct the business now operated by them in all material respects. The
         Company and its subsidiaries have not received any notice of
         proceedings relating to the revocation or modification of any such
         certificate, authority or permit that would, individually or in the
         aggregate, reasonably be expected have a Material Adverse Effect.

                  (l) No labor dispute with the employees of the Company or any
         subsidiary exists or, to the knowledge of the Company, is imminent,
         which, in either case, would have a Material Adverse Effect.

                  (m) Except as disclosed in the Offering Document, the Company
         and its subsidiaries own, possess or can acquire on reasonable terms,
         adequate trademarks, trade names and other rights to inventions,
         know-how, patents, copyrights, confidential information and other
         intellectual property (collectively, "INTELLECTUAL PROPERTY RIGHTS")
         necessary to conduct the business now operated by them, or presently
         employed by them, or as proposed to be conducted by them as described
         in the Offering Circular and have not received any notice of
         infringement of or conflict with asserted rights of others with respect
         to any intellectual property rights or of any facts or circumstances
         that would render the intellectual property rights invalid or
         inadequate to protect the interests of the Company or any of its
         subsidiaries therein that, if determined adversely to the Company or
         any of its subsidiaries, would reasonably be expected to, individually
         or in the aggregate, have a Material Adverse Effect.

                  (n) Except as disclosed in the Offering Document, neither the
         Company nor any of its subsidiaries is in violation of any statute,
         rule, regulation, decision or order of any governmental agency or body
         or any court, domestic or foreign, relating to the use, disposal or
         release of hazardous or toxic substances or relating to the protection
         or restoration of the environment or human exposure to hazardous or
         toxic substances (collectively, "ENVIRONMENTAL LAWS"), owns or operates
         any real property contaminated with any substance that is subject to
         any environmental laws, is liable for any off-site disposal or
         contamination pursuant to any environmental laws, or is subject to any
         claim relating to any environmental laws, which violation,
         contamination, liability or claim would individually or in the
         aggregate have a Material Adverse Effect; and the Company is not aware
         of any pending investigation which might lead to such a claim.

                  (o) Except as disclosed in the Offering Document, there are no
         pending actions, suits, proceedings, inquiries or investigations
         against or affecting the Company, any of its subsidiaries or any of
         their respective properties that, if determined adversely to the
         Company or any of its subsidiaries, would reasonably be expected to,
         individually or in the aggregate, have a Material Adverse Effect, or
         would materially and adversely affect the ability of the Company to
         perform its

                                       4
<PAGE>

         obligations under the Indenture, this Agreement or the Registration
         Rights Agreement, or which are otherwise material in the context of the
         sale of the Offered Securities; and no such actions, suits or
         proceedings are threatened or, to the Company's knowledge,
         contemplated.

                  (p) The consolidated financial statements of the Company
         included in the Offering Document, together with the related notes,
         present fairly in all material respects the financial position of the
         Company and its consolidated subsidiaries as of the dates shown and
         their results of operations and cash flows for the periods shown, and,
         except as otherwise disclosed in the Offering Document, such financial
         statements have been prepared in conformity with the generally accepted
         accounting principles in the United States applied on a consistent
         basis throughout the periods involved.

                  (q) Except as disclosed in the Offering Document, since the
         date of the latest audited financial statements of the Company included
         in the Offering Document there has been no material adverse change, nor
         any development or event involving a prospective material adverse
         change, in the condition (financial or other), business, properties or
         results of operations of the Company and its subsidiaries taken as a
         whole, and, except as disclosed in or contemplated by the Offering
         Document, there has been no dividend or distribution of any kind
         declared, paid or made by the Company on any class of its capital
         stock.

                  (r) The Company is subject to the reporting requirements of
         either Section 13 or Section 15(d) of the Exchange Act and files
         reports with the Commission on the Electronic Data Gathering, Analysis,
         and Retrieval (EDGAR) system.

                  (s) Neither the Company nor any of the Guarantors is an
         open-end investment company, unit investment trust or face-amount
         certificate company that is or is required to be registered under
         Section 8 of the United States Investment Company Act of 1940 (the
         "INVESTMENT COMPANY ACT"); and neither the Company nor any Guarantor is
         and, after giving effect to the offering and sale of the Offered
         Securities and the application of the proceeds thereof as described in
         the Offering Document, will be required to register as an "investment
         company" as defined in the Investment Company Act.

                  (t) No securities of the same class (within the meaning of
         Rule 144A(d)(3) under the Securities Act) as the Offered Securities are
         listed on any national securities exchange registered under Section 6
         of the Exchange Act or quoted in a U.S. automated inter-dealer
         quotation system.

                  (u) Subject to compliance by the Purchasers with the
         representations, warranties and procedures set forth in Section 4 of
         this Agreement, the offer and sale of the Offered Securities and the
         Guarantees to the Purchasers in the manner contemplated by this
         Agreement will be exempt from the registration requirements of the
         Securities Act by reason of Section 4(2) thereof and Regulation S
         thereunder; and it is not necessary to qualify an indenture in respect
         of the Offered Securities under the Trust Indenture Act.

                  (v) None of the Company, the Guarantors, nor any of their
         respective affiliates, nor any person acting on its or their behalf
         (provided that no representation is made with respect to the Purchasers
         and their affiliates) (i) has, within the six-month period prior to the
         date hereof, offered or sold the Offered Securities, or any security of
         the same class or series as the Offered Securities or (ii) has offered
         or will offer or sell the Offered Securities (A) in the United States
         by means of any form of general solicitation or general advertising
         within the meaning of Rule 502(c) under the Securities Act, including,
         but not limited to, articles, notices or other communications published
         in any newspaper, magazine, or similar medium or broadcast over
         television or radio, or any seminar or meeting whose attendees have
         been invited by any general solicitation or general advertising or (B)
         with respect to any such securities sold in reliance on Rule 903 of
         Regulation S ("REGULATION S")

                                       5
<PAGE>

         under the Securities Act, by means of any directed selling efforts
         within the meaning of Rule 902(c) of Regulation S. The Company, each of
         the Guarantors and each of their respective affiliates and any person
         acting on its or their behalf have complied and will comply with the
         offering restrictions requirement of Regulation S. Neither the Company
         nor any Guarantor has entered and neither will enter into any
         contractual arrangement with respect to the distribution of the Offered
         Securities except for this Agreement.

                  (w) The proceeds to the Company from the offering of the
         Offered Securities will not be used to purchase or carry any margin
         security.

                  (x) The entities listed on Schedule B hereto are the only
         subsidiaries (as defined in the Offering Circular), direct or indirect,
         of the Company.

                  (y) On the Closing Date, the Indenture will conform in all
         material respects to the requirements of the Trust Indenture Act, and
         the rules and regulations of the Commission applicable to an indenture
         which is qualified thereunder, other than the requirements relating to
         the eligibility of the trustee.

                  (z) The Exchange Securities will, when issued, have been duly
         authorized by the Company; and when the Exchange Securities are issued,
         executed and authenticated in accordance with the terms of the Exchange
         Offer (as defined in the Registration Rights Agreement) and the
         Indenture, the Exchange Securities will be entitled to the benefits of
         the Indenture and will be the valid and legally binding obligations of
         the Company, subject, as to enforcement, as to the effect of any
         applicable bankruptcy, insolvency (including, without limitation, all
         laws relating to fraudulent transfers), reorganization, moratorium or
         similar laws affecting the enforcement of creditors' rights generally
         and subject to the effect of general principles of equity, including,
         without limitation, concepts of materiality, reasonableness, good faith
         and fair dealing (regardless of whether enforcement is considered in a
         proceeding in equity or at law).

                  (aa) The Guarantee to be endorsed on the Exchange Securities
         by each Guarantor will, when issued, have been duly authorized by the
         Guarantor; and when issued, will have been duly executed and delivered
         by each such Guarantor. When the Exchange Securities have been issued,
         executed, authenticated and delivered in accordance with the terms of
         the Exchange Offer and the Indenture and the Guarantee of each
         Guarantor is endorsed on the Exchange Securities, the Guarantee of each
         Guarantor endorsed on the Exchange Securities will constitute valid and
         legally binding obligations of such Guarantor, enforceable in
         accordance with its terms, subject, as to enforcement, as to the effect
         of any applicable bankruptcy, insolvency (including, without
         limitation, all laws relating to fraudulent transfers), reorganization,
         moratorium or similar laws affecting the enforcement of creditors'
         rights generally and subject to the effect of general principles of
         equity, including, without limitation, concepts of materiality,
         reasonableness, good faith and fair dealing (regardless of whether
         enforcement is considered in a proceeding in equity or at law).

                  (bb) The Registration Rights Agreement has been duly
         authorized by the Company and, on the Closing Date, will have been duly
         authorized by the Guarantors and will have been duly executed and
         delivered by the Company and each of the Guarantors. When the
         Registration Rights Agreement has been duly executed and delivered, the
         Registration Rights Agreement will be a valid and binding agreement of
         the Company and each of the Guarantors, enforceable against the Company
         in accordance with its terms, subject, as to enforcement, as to the
         effect of any applicable bankruptcy, insolvency (including, without
         limitation, all laws relating to fraudulent transfers), reorganization,
         moratorium or similar laws affecting the enforcement of creditors'
         rights generally and subject to the effect of general principles of
         equity, including, without

                                       6
<PAGE>

         limitation, concepts of materiality, reasonableness, good faith and
         fair dealing (regardless of whether enforcement is considered in a
         proceeding in equity or at law), and except that rights to
         indemnification or contribution may not be enforceable due to the
         application of federal or state securities laws or public policy
         relating thereto.

                  (cc) Neither the Company nor any of its subsidiaries is (i) in
         violation of its respective charter or by-laws or (ii) in default in
         the performance of any obligation, agreement, covenant or condition
         contained in any indenture, loan agreement, mortgage, lease or other
         agreement or instrument to which the Company or any of its subsidiaries
         is a party or by which the Company or any of its subsidiaries or their
         respective property is bound, except for such violations (other than
         the case of the Company's charter or by-laws) or defaults that would
         not be reasonably expected to have a Material Adverse Effect.

                  (dd) Except for the Registration Rights Agreement, there are
         no contracts, agreements or understandings between the Company or any
         Guarantor and any person granting such person the right to require the
         Company to file a registration statement under the Securities Act with
         respect to any securities of the Company or any Guarantor or to require
         the Company or any Guarantor to include such securities with the
         Securities registered pursuant to any Registration Statement.

                  (ee) Neither the Company nor any of the Guarantors nor any
         agent thereof acting on the behalf of them has taken, and none of them
         will take, any action that might cause this Agreement or the issuance
         or sale of the Offered Securities to violate Regulation T, Regulation U
         or Regulation X of the Board of Governors of the Federal Reserve
         System.

                  (ff) No "nationally recognized statistical rating
         organization" as such term is defined for purposes of Rule 436(g)(2)
         under the Securities Act (i) has imposed (or has informed the Company
         that it is considering imposing) any condition (financial or otherwise)
         on the Company's retaining any rating assigned to the Company, any
         securities of the Company or (ii) has indicated to the Company that it
         is considering (a) the downgrading, suspension, or withdrawal of, or
         any review for a possible change that does not indicate the direction
         of the possible change in, any rating so assigned or (b) any change in
         the outlook for any rating of the Company or any securities of the
         Company.

                  (gg) The Offered Securities and Guarantees offered and sold in
         reliance on Regulation S have been and will be offered and sold only in
         offshore transactions.

                  (hh) The sale of the Offered Securities and the Guarantees
         pursuant to Regulation S is not part of a plan or scheme to evade the
         registration provisions of the Securities Act.

                  (ii) The Company maintains and will maintain disclosure
         controls and procedures (as defined as Rule 13a-14 of the Exchange Act)
         designed to ensure that information required to be disclosed by the
         Company in the reports that it files or submits under the Exchange Act
         is recorded, processed, summarized and reported in accordance with the
         Exchange Act and the rules and regulations thereunder. The Company has
         carried out and will carry out evaluations, under the supervision and
         with the participation of the Company's management, of the
         effectiveness of the design and operation of the Company's disclosure
         controls and procedures in accordance with Rule 13a-15 of the Exchange
         Act.

                  (jj) Except as would not reasonably be expected to have a
         Material Adverse Effect, the Company and its subsidiaries are in
         compliance with, and conduct their businesses in conformity with, all
         applicable U.S. and Canadian federal, state, provincial, local and
         foreign

                                       7
<PAGE>

         laws, rules and regulations, including all export control rules and
         regulations, and all applicable ordinances, judgments, decrees, orders,
         units and injunctions of any court or governmental agency or body or
         the Toronto Stock Exchange or NASDAQ National Market.

                  (kk) The Company's existing backlog of orders is as described
         in the Offering Document; except as described in the Offering Document
         and to the knowledge of the Company, all such orders are valid and
         binding and in full force and effect with respect to the Company,
         except where the failure of such orders to be valid and binding or in
         full force and effect would not reasonably be expected to have a
         Material Adverse Effect.

                  (ll) Provided that a Purchaser is a Holder as defined in the
         Offering Circular under the heading "Certain Federal Income Tax
         Considerations -- Canadian Federal Income Tax Considerations" and does
         not provide services in Canada, no stamp tax or other issuance, goods
         and services or transfer taxes or duties and no capital gains, income,
         withholding or other taxes are payable by or on behalf of the
         Purchasers to any Canadian federal or Ontario taxing authority in
         connection with (A) the creation, issuance, sale and delivery of the
         Offered Securities to the Purchasers in the manner contemplated in this
         Agreement, the Registration Rights Agreement and the Indenture; or (B)
         the resale and delivery of such Offered Securities by the Purchasers
         outside of Canada in the manner contemplated in this Agreement, the
         Registration Rights Agreement and the Indenture.

                  (mm) The Company and each Guarantor has filed all foreign,
         federal, state, provincial and local tax returns that are required to
         be filed by it or has requested extensions thereof, except where the
         failure to so file such returns would not reasonably be expected to
         have a Material Adverse Effect and has paid all taxes required to be
         paid by it and any other assessment, interest, fine or penalty levied
         against it, to the extent that any of the foregoing is material and due
         and payable, except as would not reasonably be expected to have a
         Material Adverse Effect.

                  (nn) The accountants who audited the financial statements of
         the Company included in the Offering Document are independent public
         accountants as required by the Securities Act and the Rules and
         Regulations (as defined below) and are independent with respect to the
         Company within the meaning of the Canada Business Corporations Act.

                  (oo) No withholding tax imposed under the federal laws of
         Canada or the laws of Ontario will be payable in respect of the payment
         or crediting of the commissions contemplated by this Agreement by the
         Company to a Purchaser that is not, and is not deemed to be, a resident
         of Canada for the purposes of the Income Tax Act (Canada), or of any
         interest or deemed interest on the resale of Offered Securities by a
         Purchaser to U.S. residents provided that the Purchaser deals at arm's
         length with the Company (as such term is understood for purposes of the
         Income Tax Act (Canada)), and that such commissions are payable in
         respect of services rendered by the Purchaser wholly outside of Canada
         that are performed in the ordinary course of business carried on by the
         Purchaser outside of Canada that includes the performance of such
         services for a fee;

                  (pp) No goods and services tax imposed under the federal laws
         of Canada or retail sales taxes imposed under the laws of the Province
         of Ontario will be payable by the Company or collectable by a Purchaser
         in respect of the payment of commissions as contemplated by this
         Agreement to a Purchaser that is a non-resident of Canada, provided
         that such commissions are in respect of services performed by a
         Purchaser wholly outside of Canada.

         3. Purchase, Sale and Delivery of Offered Securities . On the basis of
the representations, warranties and agreements herein contained, but subject to
the terms and conditions herein set forth, the Company agrees to sell to the
Purchasers, and the Purchasers agree, severally and not jointly, to purchase
from the Company, at

                                       8
<PAGE>

a purchase price of 100% of the principal amount thereof plus accrued interest
from December 4, 2003, to the Closing Date (as hereinafter defined) in the
respective principal amounts set forth opposite the names of the several
Purchasers in Schedule A hereto. As compensation for the services rendered by
the Purchasers to the Company in respect of the issuance and sale of the Offered
Securities, the Company will pay to the Purchasers a commission of 2.69% of the
principal amount thereof sold to the Purchasers under this Agreement.

         The Company will deliver against payment of the purchase price the
Offered Securities in the form of one or more permanent global Securities in
definitive form (the "GLOBAL SECURITIES") deposited with the Trustee as
custodian for The Depository Trust Company ("DTC") and registered in the name of
Cede & Co., as nominee for DTC. Interests in any permanent global Securities
will be held only in book-entry form through DTC, except in the limited
circumstances described in the Offering Document. Payment for the Offered
Securities shall be made by the Purchasers in Federal (same day) funds by
official check or checks or wire transfer to an account at a bank acceptable to
CSFB drawn to the order of the Company at the office of Skadden, Arps, Slate,
Meagher & Flom LLP, Four Times Square, New York, NY 10036 at 9:00 A.M. (New York
time), on December 4, 2003, or at such other time not later than seven full
business days thereafter as CSFB and the Company determine, such time being
herein referred to as the "CLOSING DATE", against delivery to the Trustee as
custodian for DTC of the Global Securities representing all of the Securities.
The Global Securities will be made available for checking at the above office of
Skadden, Arps, Slate, Meagher & Flom LLP at least 24 hours prior to the Closing
Date.

         4. Representations by Purchasers; Resale by Purchasers.

                  (a) Each Purchaser severally represents and warrants to the
         Company that it is an "accredited investor" within the meaning of
         Regulation D under the Securities Act.

                  (b) Each Purchaser severally acknowledges that the Offered
         Securities have not been registered under the Securities Act and may
         not be offered or sold within the United States or to, or for the
         account or benefit of, U.S. persons except in accordance with
         Regulation S or pursuant to an exemption from the registration
         requirements of the Securities Act. Each Purchaser severally
         acknowledges that offers and sales of Offered Securities have and will
         be made by the Purchasers or their affiliates who are qualified to do
         so in the jurisdiction in which such offers or sales are made. Each
         Purchaser severally represents and agrees that it has offered and sold
         the Offered Securities, and will offer and sell the Offered Securities
         (i) as part of its distribution at any time and (ii) otherwise until 40
         days after the later of the commencement of the offering and the
         Closing Date, only in accordance with Rule 903 or Rule 144A under the
         Securities Act ("RULE 144A"). Accordingly, neither such Purchaser nor
         its affiliates, nor any persons acting on its or their behalf, have
         engaged or will engage in any directed selling efforts with respect to
         the Offered Securities , and such Purchaser, its affiliates and all
         persons acting on its or their behalf have complied and will comply
         with the offering restrictions requirement of Regulation S. Each
         Purchaser severally agrees that, at or prior to confirmation of the
         sale of the Offered Securities, other than a sale pursuant to Rule
         144A, such Purchaser will have sent to each distributor, dealer or
         person receiving a selling concession, fee or other remuneration that
         purchases the Offered Securities from it during the restricted period a
         confirmation or notice to substantially the following effect:

                  "The Securities covered hereby have not been registered under
         the U.S. Securities Act of 1933 (the "Securities Act") and may not be
         offered or sold within the United States or to, or for the account or
         benefit of, U.S. persons (i) as part of their distribution at any time
         or (ii) otherwise until 40 days after the later of the date of
         commencement of the offering and the closing date, except in either
         case in accordance with Regulation S (or Rule 144A if available) under
         the Securities Act. Terms used above have the meanings given to them by
         Regulation S."

                  Terms used in this subsection (b) have the meanings given to
         them by Regulation S.

                                       9
<PAGE>

                  (c) Each Purchaser severally agrees that it and each of its
         affiliates has not entered and will not enter into any contractual
         arrangement with respect to the distribution of the Offered Securities
         except for any such arrangements with the other Purchasers or
         affiliates of the other Purchasers or with the prior written consent of
         the Company.

                  (d) Each Purchaser severally agrees that it and each of its
         affiliates has not and will not offer or sell the Offered Securities in
         the United States by means of any form of general solicitation or
         general advertising within the meaning of Rule 502(c) under the
         Securities Act, including, but not limited to (i) any advertisement,
         article, notice or other communication published in any newspaper,
         magazine or similar media or broadcast over television or radio, or
         (ii) any seminar or meeting whose attendees have been invited by any
         general solicitation or general advertising. Each Purchaser severally
         agrees, with respect to resales made in reliance on Rule 144A of any of
         the Offered Securities, to deliver either with the confirmation of such
         resale or otherwise prior to settlement of such resale a notice to the
         effect that the resale of such Offered Securities has been made in
         reliance upon the exemption from the registration requirements of the
         Securities Act provided by Rule 144A.

                  (e) Each of the Purchasers severally represents and agrees
         that (i) it has not offered or sold and prior to the expiry of a period
         of six months from the closing date, will not offer or sell any Offered
         Securities to persons in the United Kingdom except to persons whose
         ordinary activities involve them in acquiring, holding, managing or
         disposing of investments (as principal or agent) for the purposes of
         their businesses or otherwise in circumstances which have not resulted
         and will not result in an offer to the public in the United Kingdom
         within the meaning of the Public Offers of Securities Regulations 1995;
         (ii) it has only communicated or caused to be communicated and will
         only communicate or cause to be communicated any invitation or
         inducement to engage in investment activity (within the meaning of
         section 21 of the Financial Services and Markets Act 2000 (the "FSMA"))
         received by it in connection with the issue or sale of any Offered
         Securities in circumstances in which section 21(1) of the FSMA does not
         apply to the Company; and (iii) it has complied and will comply with
         all applicable provisions of the FSMA with respect to anything done by
         it in relation to the Offered Securities in, from or otherwise
         involving the United Kingdom.

                  (f) Each Purchaser severally represents, warrants and agrees
         to and with the Company that: (i) it will not offer or resell any of
         the Offered Securities in any province or territory of Canada so as to
         give rise to any requirement on the part of the Company or any
         Guarantor to file a prospectus in any such province or territory; (ii)
         any offers or resales of Offered Securities made to Canadian residents
         will be made only to residents of those provinces defined as "Private
         Placement Provinces" in the final confidential Canadian Offering
         Memorandum and only to the categories of exempt purchasers referred to
         therein pursuant to available prospectus exemptions; and (iii) in
         making any offers and resales of Offered Securities in such provinces,
         it will comply with all applicable securities laws, rules, regulations,
         instruments, policy statements and notices in such provinces
         (collectively, "Provincial Securities Laws") at all relevant times
         including, without limitation, any applicable dealer registration
         requirements. Each Purchaser severally agrees to indemnify and save
         harmless the Company and each Guarantor, their officers, directors,
         shareholders, agents and employees from and against any and all claims,
         demands, suits, proceedings, expenses, losses, obligations, fees,
         expenses and liabilities of whatever nature arising, whether directly
         or indirectly, as a consequence of any breach by or failure to comply,
         on the part of, such Purchaser with the foregoing.

                  (g) Each Purchaser that offers or resells any Offered
         Securities to residents of Canada shall promptly notify the Company in
         writing of all details concerning any such offers or

                                       10
<PAGE>

         resales as may be required by the Company in order to enable it to
         fulfill any notice, filing or other obligation arising from such sales
         under applicable Provincial Securities Laws in a timely fashion.

         5. Certain Agreements of the Company and the Guarantors. The Company
and each of the Guarantors severally agree with the several Purchasers that:

                  (a) Prior to the completion of the resale of the Offered
         Securities by the Purchasers, which shall be evidenced by written
         notice by CSFB upon request by the Company, the Company will advise
         CSFB promptly of any proposal to amend or supplement the Offering
         Document and will not effect such amendment or supplementation without
         CSFB's consent (which such consent shall not be unreasonably withheld);
         provided, however, this provision shall not prohibit the Company from
         complying in a timely manner with its disclosure obligations under
         applicable securities legislation and the requirements of any relevant
         stock exchange, with respect to events that occur after the date of
         this Agreement. If, at any time prior to the earlier of (i) the
         completion of the resale of the Offered Securities by the Purchasers,
         which shall be evidenced by written notice by CSFB upon request by the
         Company and (ii) the effectiveness of the Shelf Registration Statement
         (as defined in the Registration Rights Agreement), any event occurs as
         a result of which the Offering Document as then amended or supplemented
         would include an untrue statement of a material fact or omit to state
         any material fact necessary in order to make the statements therein, in
         the light of the circumstances under which they were made, not
         misleading, or if it is necessary at any such time to amend or
         supplement the Offering Document to comply with any applicable law, the
         Company promptly will notify CSFB of such event and promptly will
         prepare, at its own expense, an amendment or supplement which will
         correct such statement or omission or effect such compliance. Upon
         receipt of a notice pursuant to this Section 5(a), each Purchaser shall
         forthwith discontinue any use of the Offering Document in connection
         with the offer or sale of the Offered Securities until such Purchaser
         has received an amendment or supplement pursuant to this Section 5(a)
         or until such Purchaser is advised by the Company in writing that the
         use of the then-exiting Offering Document may be resumed. Neither
         CSFB's consent to, nor the Purchasers' delivery to offerees or
         investors of, any such amendment or supplement shall constitute a
         waiver of any of the conditions set forth in Section 6.

                  (b) The Company will furnish to CSFB copies of any Preliminary
         Offering Circular, the Offering Document and all amendments and
         supplements to such documents, in each case as soon as available and in
         such quantities as CSFB reasonably requests, and the Company will
         furnish to CSFB on the Closing Date, one copy of the Offering Document
         certified by a duly authorized officer of the Company. At any time when
         the Company is not subject to Section 13 or 15(d) of the Exchange Act
         and is not exempt from reporting pursuant to Rule 12g3-2(b) under the
         Exchange Act, the Company will promptly furnish or cause to be
         furnished to CSFB upon request (and, upon request, to each of the other
         Purchasers) and, upon request of holders and prospective purchasers of
         the Offered Securities, to such holders and purchasers, copies of the
         information required to be delivered to holders and prospective
         purchasers of the Offered Securities pursuant to Rule 144A(d)(4) under
         the Securities Act (or any successor provision thereto) in order to
         permit compliance with Rule 144A in connection with resales by such
         holders of the Offered Securities. The Company will pay the expenses of
         printing and distributing to the Purchasers all such documents.

                  (c) Each of the Company and the Guarantors will use its
         reasonable best efforts to arrange for the qualification of the Offered
         Securities and the Guarantees for sale and the determination of their
         eligibility for investment under the laws of such jurisdictions in the
         United States as CSFB designates and will continue such qualifications
         in effect so long as required for the resale of the Offered Securities
         by the Purchasers, provided that the Company will not be required to
         qualify as a foreign corporation or to file a general consent to
         service of process in any such state,

                                       11
<PAGE>

         which it is not so qualified or to subject itself to taxation in
         respect of doing business in any jurisdiction in which it is not
         otherwise so subject.

                  (d) During the period of two years after the Closing Date, the
         Company will, upon request, furnish to CSFB, each of the other
         Purchasers and any holder of Offered Securities a copy of the
         restrictions on transfer applicable to the Offered Securities.

                  (e) During the period of two years after the Closing Date, the
         Company will not, and, to the best of its ability, will not permit any
         of its affiliates (as defined in Rule 144 under the Securities Act) to,
         resell any of the Offered Securities that have been reacquired by it,
         if after such resale, the Offered Securities would be "restricted
         securities" as defined in Rule 144A.

                  (f) During the period of two years after the Closing Date, the
         Company will not be or become, an open-end investment company, unit
         investment trust or face-amount certificate company that is or is
         required to be registered under Section 8 of the Investment Company
         Act.

                  (g) The Company will pay all expenses (together with VAT where
         applicable) incidental to the performance of its obligations under this
         Agreement, the Indenture and Registration Rights Agreement, including
         (i) the fees and expenses of the Trustee and its professional advisers;
         (ii) all expenses in connection with the execution, issue,
         authentication, packaging and initial delivery of the Offered
         Securities, the Guarantees and, as applicable, the Exchange Securities
         (as defined in the Registration Rights Agreement), the preparation and
         printing by the Company of this Agreement, the Registration Rights
         Agreement, the Offered Securities, the Guarantees, the Indenture, the
         Offering Document and amendments and supplements thereto, and any other
         document relating to the issuance, offer, sale and delivery of the
         Offered Securities, the Guarantees and as applicable, the Exchange
         Securities; (iii) the cost of listing the Offered Securities and
         qualifying the Offered Securities and Guarantees for trading in The
         PortalSM Market ("PORTAL") and any expenses incidental thereto; (iv)
         for any expenses (including the reasonable fees and disbursements of
         counsel) incurred in connection with qualification of the Offered
         Securities, the Guarantees or the Exchange Securities for sale under
         the laws of such jurisdictions in the United States and Canada as CSFB
         designates (subject to Section 5(c)) and the printing of memoranda
         relating thereto; (v) for any fees charged by investment rating
         agencies for the rating of the Securities or the Exchange Securities,
         and (vi) for expenses incurred in distributing preliminary offering
         circulars and the Offering Document (including any amendments and
         supplements thereto) to the Purchasers. The Company will also pay or
         reimburse the Purchasers (to the extent incurred by them) for all
         travel expenses of the Purchasers and the Company's officers and
         employees and any other expenses of the Purchasers and the Company in
         connection with attending or hosting meetings with prospective
         purchasers of the Offered Securities from the Purchasers.

                  (h) In connection with the offering, until CSFB shall have
         notified the Company and the other Purchasers of the completion of the
         resale of the Offered Securities, neither the Company nor any of its
         affiliates has or will, either alone or with one or more other persons,
         bid for or purchase for any account in which it or any of its
         affiliates has a beneficial interest any Offered Securities or attempt
         to induce any person to purchase any Offered Securities; and neither it
         nor any of its affiliates will make bids or purchases for the purpose
         of creating actual, or apparent, active trading in, or of raising the
         price of, the Offered Securities .

                  (i) Except as contemplated by this Agreement and the
         Registration Rights Agreement, for a period of 90 days after the date
         of the initial offering of the Offered Securities by the Purchasers,
         the Company will not offer, sell, contract to sell, pledge or otherwise
         dispose of, directly or indirectly, or file with the Commission a
         registration statement under the Act relating to, any United States
         dollar-denominated debt securities issued or guaranteed by the Company
         and having a

                                       12
<PAGE>

         maturity of more than one year from the date of issue, or publicly
         disclose the intention to make any such offer, sale, pledge,
         disposition or filing, without the prior written consent of CSFB, which
         consent shall not be unreasonably withheld or delayed. Each of the
         Company will not at any time offer, sell, contract to sell, pledge or
         otherwise dispose of, directly or indirectly, any securities under
         circumstances where such offer, sale, pledge, contract or disposition
         would cause the exemption afforded by Section 4(2) of the Securities
         Act or the safe harbor of Regulation S thereunder to cease to be
         applicable to the offer and sale of the Offered Securities.

                   (j) The Company will indemnify and hold harmless the
         Purchasers against any documentary, stamp or similar issuance tax,
         including any interest and penalties, on the creation, issuance and
         sale of the Offered Securities and on the execution and delivery of
         this Agreement. All payments to be made by the Company hereunder shall
         be made without withholding or deduction for or on account of any
         present or future taxes, duties or governmental charges imposed under
         the laws of Canada or the laws of Ontario whatsoever unless the Company
         is compelled by law to deduct or withhold such taxes, duties or
         charges. In that event, the Company shall pay such additional amounts
         as may be necessary in order that the net amounts received after such
         withholding or deduction shall equal the amounts that would have been
         received if no withholding or deduction had been made, except where
         such deduction or withholding was required because the Purchaser is, or
         is deemed to be, a resident of Canada, does not deal at arm's length
         with the Company or has rendered services to the Company in Canada.

         6. Conditions of the Obligations of the Purchasers. The obligations of
the several Purchasers to purchase and pay for the Offered Securities will be
subject to the accuracy of the representations and warranties on the part of the
Company and the Guarantors herein, to the accuracy of the statements of officers
of the Company and the Guarantors made pursuant to the provisions hereof, to the
performance by the Company and the Guarantors of their obligations hereunder and
to the following additional conditions precedent:

                  (a) The Purchasers shall have received a letter, dated the
         date of this Agreement, of PricewaterhouseCoopers LLP, confirming that
         they are independent public accountants within the meaning of the
         Securities Act and the applicable published rules and regulations
         thereunder ("RULES AND REGULATIONS") and to the effect that:

                           (i) in their opinion the consolidated financial
                  statements examined by them and included in the Offering
                  Document, as prepared in accordance U.S. generally accepted
                  accounting principles, comply as to form in all material
                  respects with the applicable accounting requirements of the
                  Securities Act and the related published Rules and
                  Regulations;

                           (ii) they have performed the procedures specified by
                  the American Institute of Certified Public Accountants for a
                  review of interim financial information as described in
                  Statement of Auditing Standards No. 100, Interim Financial
                  Information and as described in Statement of Auditing
                  Standards No. 71, Interim Financial Information, on any
                  unaudited financial statements included in the Offering
                  Document;

                           (iii) on the basis of the review referred to in
                  clause (ii) above, a reading of the latest available interim
                  consolidated financial statements of the Company, inquiries of
                  officials of the Company who have responsibility for financial
                  and accounting matters and other specified procedures, nothing
                  came to their attention that caused them to believe that:

                                     (A) the unaudited financial statements
                           included in the Offering Document do not comply as to
                           form in all material respects with the applicable

                                       13
<PAGE>

                           accounting requirements of the Securities Act and the
                           related published Rules and Regulations or any
                           material modifications should be made to such
                           unaudited financial statements for them to be in
                           conformity with U.S. generally accepted accounting
                           principles;

                                    (B) at the date of the latest available
                           balance sheet read by such accountants, or at a
                           subsequent specified date not more than three
                           business days prior to the date of this Agreement,
                           there was any change in the share capital or any
                           increase in short-term indebtedness or long-term debt
                           of the Company and its consolidated subsidiaries or,
                           at the date of the latest available balance sheet
                           read by such accountants, there was any decrease in
                           consolidated net current assets or net assets, as
                           compared with amounts shown on the latest balance
                           sheet included in the Offering Document; or

                                    (C) for the period from the closing date of
                           the latest income statement included in the Offering
                           Document to the closing date of the latest available
                           income statement read by such accountants there were
                           any decreases, as compared with the corresponding
                           period of the previous year and with the period of
                           corresponding length ended the date of the latest
                           income statement included in the Offering Document,
                           in consolidated net sales, net operating income,
                           income before extraordinary items, net income or in
                           the ratio of earnings to fixed charges;

                  except in all cases set forth in clauses (B) and (C) above for
                  changes, increases or decreases which the Offering Document
                  disclose have occurred or may occur or which are described in
                  such letter; and

                            (iv) they have compared specified dollar amounts (or
                  percentages derived from such dollar amounts) and other
                  financial information contained in the Offering Document (to
                  the extent that such dollar amounts, percentages and other
                  financial information are derived from the general accounting
                  records of the Company and its subsidiaries subject to the
                  internal controls of the Company's accounting system or are
                  derived directly from such records by analysis or computation)
                  with the results obtained from inquiries, a reading of such
                  general accounting records and other procedures specified in
                  such letter and have found such dollar amounts, percentages
                  and other financial information to be in agreement with such
                  results, except as otherwise specified in such letter.

                  (b) Subsequent to the execution and delivery of this
         Agreement, there shall not have occurred (i) any change, or any
         development or event involving a prospective change, in the condition
         (financial or other), business, properties or results of operations of
         the Company and its subsidiaries taken as one enterprise which, in the
         reasonable judgment of a majority in interest of the Purchasers
         including CSFB, is material and adverse and makes it impractical or
         inadvisable to proceed with completion of the offering or the sale of
         and payment for the Offered Securities; (ii) any downgrading in the
         rating of any debt securities of the Company by any "nationally
         recognized statistical rating organization" (as defined for purposes of
         Rule 436(g) under the Securities Act), or any public announcement that
         any such organization has under surveillance or review its rating of
         any debt securities of the Company (other than an announcement with
         positive implications of a possible upgrading, and no implication of a
         possible downgrading, of such rating) or any announcement that the
         Company has been placed on negative outlook; (iii) any change in U.S.,
         Canada, or international financial, political or economic conditions or
         currency exchange rates or exchange controls as would, in the
         reasonable judgment of a majority in interest of the Purchasers
         including CSFB, be likely to prejudice materially the success of the
         proposed issue, sale or distribution of the Offered Securities, whether
         in the primary market or in respect of dealings in the

                                       14
<PAGE>

         secondary market, (iv) any material suspension or material limitation
         of trading in securities generally on the New York Stock Exchange or
         the NASDAQ National Market, or any setting of minimum prices for
         trading on such exchange, or any suspension of trading of any
         securities of the Company on any exchange or in the over-the-counter
         market; (v) any banking moratorium declared by U.S. Federal or New York
         authorities; (vi) any major disruption of settlements of securities or
         clearance services in the United States or (vii) any attack on,
         outbreak or escalation of hostilities or act of terrorism involving the
         United States or Canada, any declaration of war by Congress, the
         Canadian Prime Minister and/or Parliament or any other national or
         international calamity or emergency if, in the reasonable judgment of a
         majority in interest of the Purchasers including CSFB, the effect of
         any such attack, outbreak, escalation, act, declaration, calamity or
         emergency makes it impractical or inadvisable to proceed with
         completion of the offering or sale of and payment for the Offered
         Securities.

                  (c) The Purchasers shall have received an opinion, dated the
         Closing Date, of Shearman & Sterling LLP, special United States counsel
         for the Company and the Guarantors, that:

                           (i) This Agreement has been duly authorized, executed
                  and delivered by each of David Keighley Productions 70MM Inc.,
                  IMAX II U.S.A. Inc., IMAX Minnesota Holding Co., IMAX Scribe
                  Inc., IMAX Theatre Holding Co., IMAX Theatre Holdings (OEI)
                  Inc., IMAX Theatre Management Company, IMAX U.S.A. Inc.,
                  Ridefilm Corporation, IMAX (Titanic) Inc., IMAX Film Holding
                  Co., IMAX Pictures Corporation, Immersive Entertainment Inc.,
                  IMAX Providence General Partner Co., IMAX Providence Limited
                  Partner Co., IMAX Theatre Holding (California I) Co., IMAX
                  Theatre Holding (California II) Co., IMAX Theatre Holding
                  (Nyack I) Co., IMAX Theatre Holding (Nyack II) Co., Panda
                  Productions Inc. and Strategic Sponsorship Corporation (each,
                  a "DELAWARE CORPORATE SUBSIDIARY" and, together, the "DELAWARE
                  CORPORATE Subsidiaries") and by Nyack Theatre LLC (the "NEW
                  YORK SUBSIDIARY"), and assuming (i) the due authorization,
                  execution and delivery of this Agreement by the Company and
                  IMAX Sandde Animation Inc., IMAX Space Ltd., IMAX Theatre
                  Services Ltd., Mitey Cinema Inc., Mountainview Theatre
                  Management Ltd., Starboard Theatres Ltd., Wire Frame Films
                  Ltd., 1329507 Ontario Inc., 924689 Ontario Inc., IMAX
                  (Titanica) Ltd., IMAX Music Ltd., IMAX Theatre Holding
                  (Broussard) Inc., Tantus Films Ltd., Tantus II Films Ltd. and
                  RPM Pictures Ltd. (each, a "CANADIAN SUBSIDIARY" and,
                  together, the "CANADIAN SUBSIDIARIES") under the laws of
                  Ontario and Alberta and the federal laws of Canada applicable
                  therein ("CANADIAN LAW"), (ii) the due authorization,
                  execution and delivery by Miami Theatre LLC, Sacramento
                  Theatre LLC and IMAX Chicago Theatre LLC (each, a "DELAWARE
                  LLC SUBSIDIARY" and together, the "DELAWARE LLC SUBSIDIARIES")
                  under the laws of Delaware and (iii) the due authorization,
                  execution and delivery by each of the Non-Delaware
                  Subsidiaries (as defined below) under the laws of each of
                  their respective jurisdictions of incorporation or formation,
                  as applicable, this Agreement (to the extent that execution
                  and delivery are governed by the laws of the State of New
                  York) has been executed and delivered by the Company and each
                  of the Guarantors;

                           (ii) The Registration Rights Agreement has been duly
                  authorized, executed and delivered by each of the Delaware
                  Corporate Subsidiaries and the New York Subsidiary, and
                  assuming (i) the due authorization, execution and delivery of
                  the Registration Rights Agreement by the Company and each of
                  the Canadian Subsidiaries under Canadian Law, (ii) the due
                  authorization, execution and delivery of the Registration
                  Rights Agreement by the Delaware LLC Subsidiaries under the
                  laws of Delaware and (iii) the due authorization, execution
                  and delivery of the Registration Rights Agreement by the
                  Non-Delaware Subsidiaries under the laws of each of their
                  respective jurisdictions of incorporation or formation, as
                  applicable, the Registration Rights Agreement (to the extent

                                       15
<PAGE>

                  that execution and delivery are governed by the laws of the
                  State of New York) has been executed and delivered by the
                  Company, each of the Canadian Subsidiaries, each of the
                  Delaware LLC Subsidiaries and each of the Non-Delaware
                  Subsidiaries, and constitutes a valid and binding instrument
                  of the Company and each of the Guarantors, enforceable against
                  the Company and each of the Guarantors in accordance with its
                  terms, subject, as to enforcement, as to the effect of any
                  applicable bankruptcy, insolvency (including, without
                  limitation, all laws relating to fraudulent transfers),
                  reorganization, moratorium or similar laws affecting the
                  enforcement of creditors' rights generally and subject to the
                  effect of general principles of equity, including, without
                  limitation, concepts of materiality, reasonableness, good
                  faith and fair dealing (regardless of whether enforcement is
                  considered in a proceeding in equity or at law), and except
                  that rights to indemnification or contribution may not be
                  enforceable due to the application of federal or state
                  securities laws or public policy relating thereto;

                           (iii) The Indenture has been duly authorized,
                  executed and delivered by each of the Delaware Corporate
                  Subsidiaries and the New York Subsidiary, and assuming (i) the
                  due authorization, execution and delivery of the Indenture by
                  the Company and each of the Canadian Subsidiaries under
                  Canadian Law, (ii) the due authorization, execution and
                  delivery of the Indenture by each of the Delaware LLC
                  Subsidiaries under the laws of Delaware, (iii) the due
                  authorization, execution and delivery of the Indenture by each
                  of the Non-Delaware Subsidiaries under the laws of each of
                  their respective jurisdictions of incorporation or formation,
                  as applicable, and (iv) due authorization, execution, and
                  delivery of the Indenture by the Trustee, the Indenture (to
                  the extent that execution and delivery are governed by the
                  laws of the State of New York) has been executed and delivered
                  by the Company and each of the Guarantors and constitutes a
                  valid and binding instrument of the Company and each of the
                  Guarantors, enforceable against the Company and each of the
                  Guarantors in accordance with its terms, subject, as to
                  enforcement, as to the effect of any applicable bankruptcy,
                  insolvency (including, without limitation, all laws relating
                  to fraudulent transfers), reorganization, moratorium or
                  similar laws affecting the enforcement of creditors' rights
                  generally and subject to the effect of general principles of
                  equity, including, without limitation, concepts of
                  materiality, reasonableness, good faith and fair dealing
                  (regardless of whether enforcement is considered in a
                  proceeding in equity or at law);

                           (iv) The Offered Securities conform to the
                  description thereof contained in the Offering Document and
                  assuming the due authorization, execution and delivery of the
                  Offered Securities by the Company under Canadian Law, and
                  assuming the due authentication of the Offered Securities by
                  the Trustee in the manner described in its certificate (which
                  fact such counsel need not have determined by an inspection of
                  the Offered Securities), the Offered Securities (to the extent
                  that execution and delivery are governed by the laws of the
                  State of New York) have been executed and delivered by the
                  Company and constitute valid and binding obligations of the
                  Company, enforceable against the Company in accordance with
                  their terms, subject, as to enforcement, as to the effect of
                  any applicable bankruptcy, insolvency (including, without
                  limitation, all laws relating to fraudulent transfers),
                  reorganization, moratorium or similar laws affecting the
                  enforcement of creditors' rights generally and subject to the
                  effect of general principles of equity, including, without
                  limitation, concepts of materiality, reasonableness, good
                  faith and fair dealing (regardless of whether enforcement is
                  considered in a proceeding in equity or at law);

                           (v) The Guarantees have been duly authorized by the
                  Delaware Corporate Subsidiaries and the New York Subsidiary.
                  Assuming (i) the due authorization,

                                       16
<PAGE>

                  execution and delivery of the Guarantees by the Canadian
                  Subsidiaries under Canadian Law, (ii) the due authorization,
                  execution and delivery of the Guarantees by the Delaware LLC
                  Subsidiaries under the laws of Delaware and (iii) the due
                  authorization, execution and delivery of the Guarantees by the
                  Non-Delaware Subsidiaries under the laws of each of their
                  respective jurisdictions of incorporation or formation, as
                  applicable, the Guarantees endorsed on the Offered Securities
                  (to the extent execution and delivery are governed by the laws
                  of the State of New York) have been executed and delivered by
                  the Guarantors and, assuming the Indenture has been executed
                  and the Offered Securities have been duly authenticated by the
                  Trustee in accordance with the terms of the Indenture and
                  delivered to and paid for by the Purchasers in accordance with
                  the terms of this Agreement, will be the valid and legally
                  binding obligations of each Guarantor, enforceable against
                  each Guarantor in accordance with their terms, subject, as to
                  enforcement, as to the effect of any applicable bankruptcy,
                  insolvency (including, without limitation, all laws relating
                  to fraudulent transfers), reorganization, moratorium or
                  similar laws affecting the enforcement of creditors' rights
                  generally and subject to the effect of general principles of
                  equity, including, without limitation, concepts of
                  materiality, reasonableness, good faith and fair dealing
                  (regardless of whether enforcement is considered in a
                  proceeding in equity or at law);

                           (vi) The statements set forth in the Offering
                  Circular under the caption (a) "Description of the Notes",
                  insofar as they purport to constitute a summary of the terms
                  of the Offered Securities, the Indenture and the Registration
                  Rights Agreement described therein, fairly summarize such
                  terms in all material respects, and (b) "Certain Federal
                  Income Tax Considerations - U.S. Federal Income Tax
                  Considerations," insofar as they purport to describe the
                  provisions of the laws or documents referred to therein,
                  fairly summarize such laws or documents in all material
                  respects;

                           (vii) Assuming (a) the accuracy of and compliance
                  with the representations, warranties and covenants of the
                  Company and the Guarantors in this Agreement and (b) the
                  accuracy of and compliance with the representations,
                  warranties and covenants of the Purchasers in this Agreement,
                  no registration of the Offered Securities under the Securities
                  Act and no qualification of an indenture under the Trust
                  Indenture Act with respect thereto, is required in connection
                  with the offer, sale and delivery of the Offered Securities to
                  the Purchasers and the initial resale of the Offered
                  Securities by the Purchasers in the manner contemplated by the
                  this Agreement and the Offering Circular (it being understood
                  that such counsel does not express any opinion as to any
                  subsequent resale of any of the Offered Securities);

                           (viii) Neither the Company nor any of the Guarantors
                  are or, after giving effect to the offering and sale of the
                  Offered Securities, will be required to be registered as an
                  "investment company", as such term is defined in the
                  Investment Company Act;

                           (ix) No consent, approval, authorization, order,
                  registration or qualification of or with any United States
                  federal of New York State court or governmental agency or body
                  is required for the issue and sale of the Offered Securities
                  or the Guarantees by the Company and the Guarantors, the
                  resale of the Offered Securities by the Purchasers or the
                  consummation by the Company and the Guarantors of the
                  transactions contemplated by the Purchase Agreement, the
                  Indenture or the Registration Rights Agreement, except as
                  required under the Securities Act and the Trust Indenture Act
                  in connection with the Registration Rights Agreement and
                  applicable state securities or blue sky laws;

                                       17
<PAGE>

                           (x) The execution, delivery and performance of the
                  Indenture, this Agreement and the Registration Rights
                  Agreement and the issuance and sale of the Offered Securities
                  and the Guarantees and compliance with the terms and
                  provisions thereof will not result in (a) a breach of, or
                  constitute a default under, any of the provisions of the
                  Indenture, dated as of December 4, 1998 between the Company
                  and U.S. Bank Trust National Association, as trustee, relating
                  to the Company's $200,000,000 of aggregate principal amount 7
                  7/8% Senior Notes due December 1, 2005, as supplemented by the
                  First Supplemental Indenture to be dated prior to or on the
                  Closing Date between the Company and U.S. Bank Trust National
                  Association, as trustee, or (b) contravene any United States
                  federal or New York law, rule or regulation applicable to the
                  Company, or any order identified to us by the Company
                  applicable to the Company of any court or of any other United
                  States federal or New York State governmental body or
                  instrumentality having jurisdiction over it or any of its
                  property (it being understood that for the purpose of the
                  opinion in this paragraph (xiii), we are not passing upon
                  compliance with respect to antifraud or similar provisions of
                  any law, rule or regulation); and

                           (xi) Assuming the due authorization, execution and
                  delivery of the this Agreement, the Indenture and the
                  Registration Rights Agreement by the Company under Canadian
                  Law, the submission by the Company to the non-exclusive
                  jurisdiction of the courts of the State of New York pursuant
                  to Section 14 of this Agreement, pursuant to Section 112 of
                  the Indenture and Section 9 of the Registration Rights
                  Agreement is effective. Such counsel shall note that a court
                  of the State of New York or the United States of America
                  sitting in New York County has the power to decline to hear an
                  action based on this Agreement, the Indenture or the
                  Registration Rights Agreement on the ground that the State of
                  New York is an inconvenient forum.

         In addition, such counsel will state in a separate letter that it has
no reason to believe that the Offering Circular, or any amendment or supplement
thereto, as of the date hereof and as of the Closing Date, contained or contains
any untrue statement of a material fact or omitted or omits to state any
material fact required to be stated therein or necessary to make the statements
therein in light of the circumstances under which they were made, not
misleading; it being understood that such counsel need express no opinion as to
the financial statements or other financial data contained in or omitted from
Offering Circular.

                           (d) The Purchasers shall have received an opinion,
         dated such Closing Date, of McCarthy Tetrault LLP, Canadian counsel for
         the Company and the Canadian Subsidiaries, to the effect that:

                           (i) The Company has been duly amalgamated and is
                  validly existing under the federal laws of Canada, with
                  corporate power and authority to own its properties and
                  conduct its business as described in the Offering Circular;
                  and the Company is duly licensed to do business as an
                  extra-provincial corporation in good standing in all Canadian
                  jurisdictions in which its ownership or lease of property or
                  the conduct of its business requires such licenses;

                           (ii) Each of the Canadian Subsidiaries has been duly
                  incorporated and is validly existing under the federal laws of
                  Canada, the laws of Ontario or the laws of Alberta, as the
                  case may be, with corporate power and authority to own its
                  properties and conduct its business as described in the
                  Offering Circular; and each Canadian Subsidiary is duly
                  licensed to do business as an extra-provincial corporation in
                  good standing in all Canadian jurisdictions in which its
                  ownership or lease of property or the conduct of its

                                       18
<PAGE>

                  business requires such license; based solely on an officer's
                  certificate, all of the issued and outstanding capital stock
                  of each Canadian Subsidiary has been duly authorized and
                  validly issued and is fully paid and nonassessable;

                           (iii) Except for those that have been obtained, no
                  authorization, approval, permit, consent, license,
                  registration, filing, order, qualification or exemption of any
                  Canadian federal or Ontario government, governmental
                  instrumentality or court is required for (A) the valid
                  authorization, issuance, sale and delivery by the Company to
                  the Purchasers of the Offered Securities in the United States
                  and (B) the valid execution and delivery of, and the
                  performance by the Company of its obligations, under this
                  Agreement, the Registration Rights Agreement or the Indenture;

                           (iv) The statements set forth in the Offering
                  Circular, under the headings "Risk Factors -- Risks Related to
                  the Notes -- Certain bankruptcy and insolvency laws may impair
                  the trustee's ability to enforce remedies under the notes,"
                  "Risk Factors -- Risks Related to Our Business -- Because we
                  are incorporated in Canada, it may be difficult for you to
                  enforce against us liabilities based solely on U.S. federal
                  securities laws," "Certain Federal Income Tax Considerations
                  -- Canadian Federal Income Tax Considerations," insofar as
                  such statements purport to describe matters of Canadian
                  federal law, provide an accurate summary thereof, in all
                  material respects, subject to the qualifications and
                  limitations referred to therein;

                           (v) The execution, delivery and performance of this
                  Agreement, the Registration Rights Agreement and the
                  Indenture, and the issuance and sale of the Offered Securities
                  to the Purchasers in the United States, in each case, by the
                  Company will not result in a breach or violation, or
                  constitute a default under, any applicable Canadian federal or
                  Ontario statute, rule, or regulation, or the articles or
                  by-laws of the Company, and the Company has the corporate
                  power and authority to authorize, issue and sell the Offered
                  Securities as contemplated by this Agreement, the Registration
                  Rights Agreement and the Indenture;

                           (vi) The execution, delivery and performance of this
                  Agreement, the Registration Rights Agreement and the Indenture
                  and the issuance of the Guarantees, in each case, by each of
                  the Canadian Subsidiaries will not result in a breach or
                  violation, or constitute a default under, any applicable
                  Canadian federal or Ontario statute, rule, or regulation, or
                  the articles or by-laws of each of the Canadian Subsidiaries,
                  and each of the Canadian Subsidiaries has the corporate power
                  and authority to authorize, issue and deliver the Guarantees
                  as contemplated by this Agreement, the Registration Rights
                  Agreement and the Indenture;

                           (vii) To such counsel's knowledge, no order having
                  the effect of ceasing or suspending the distribution of the
                  Offered Securities has been issued by any securities
                  commission or securities regulatory authority in Canada and no
                  proceedings for that purpose have been instituted or are
                  pending;

                           (viii) The Company is not, to such counsel's
                  knowledge, on any list of defaulting reporting issuers
                  maintained under the securities legislation of any Canadian
                  province that provides for a reporting issuer regime;

                           (ix) The Indenture is exempt from the trust indenture
                  requirements of Part VIII of the Canada Business Corporations
                  Act, including the requirement that the trustee under the
                  Indenture be a body corporate incorporated under the laws of
                  Canada or a

                                       19
<PAGE>

                  province and authorized to carry on the business of a trust
                  company. No registration, filing or recording of the Indenture
                  under the federal laws of Canada is necessary in order to
                  preserve or protect the validity or enforceability of the
                  Indenture or the Offered Securities issued thereunder;

                           (x) Except as disclosed in the Offering Document,
                  under current Canadian federal and Ontario laws and
                  regulations, all interest, principal, premium, if any, and
                  other payments due or made on the Offered Securities may be
                  paid by the Company to the holder thereof in United States
                  dollars or Canadian dollars that may be converted into foreign
                  currency and freely transferred out of Canada and no such
                  payments made to holders thereof who are Holders as defined in
                  the Offering Circular under the heading "Certain Federal
                  Income Tax Considerations -- Canadian Federal Income Tax
                  Considerations" will be subject to income, withholding or
                  other taxes under the laws and regulations of Canada or
                  Ontario and all such payments will otherwise be free and clear
                  of any other Canadian federal or Ontario tax, duty,
                  withholding or deduction and without the necessity of
                  obtaining any Canadian federal or Ontario governmental
                  authorization;

                           (xi) Provided that a Purchaser is a Holder as defined
                  in the Offering Circular under the heading "Certain Federal
                  Income Tax Considerations -- Canadian Federal Income Tax
                  Considerations" and does not provide services in Canada, no
                  stamp tax or other issuance, goods and services or transfer
                  taxes or duties and no capital gains, income, withholding or
                  other taxes are payable by or on behalf of the Purchasers to
                  any Canadian federal or Ontario taxing authority in connection
                  with (A) the creation, issuance, sale and delivery of the
                  Offered Securities to the Purchasers in the manner
                  contemplated in this Agreement, the Registration Rights
                  Agreement and the Indenture; or (B) the resale and delivery of
                  such Offered Securities by the Purchasers outside of Canada in
                  the manner contemplated in this Agreement, the Registration
                  Rights Agreement and the Indenture;

                           (xii) A court of competent jurisdiction in the
                  Province of Ontario (an "Ontario Court") would give effect to
                  the choice of the laws of the State of New York ("New York
                  Law") as the proper law governing this Agreement, the
                  Registration Rights Agreement, the Indenture and the Offered
                  Securities provided that such choice of law is bona fide (in
                  the sense that it was not make with a view to avoiding the
                  consequences of the laws of any other jurisdiction) and
                  provided that such choice of New York Law is not contrary to
                  public policy, as that term is applied by an Ontario Court;

                           (xiii) There are no reasons under the laws of the
                  Province of Ontario or the federal laws of Canada applicable
                  therein for avoiding on public policy grounds the choice of
                  New York Law to govern this Agreement, the Registration Rights
                  Agreement, the Indenture or the Offered Securities;

                           (xiv) If this Agreement, the Registration Rights
                  Agreement, the Indenture or the Offered Securities are sought
                  to be enforced in the Province of Ontario in accordance with
                  the laws applicable thereto as chosen by the parties, namely
                  New York Law, and an Ontario Court recognized the choice of
                  New York Law, an Ontario Court would, upon appropriate
                  evidence as to such law being adduced, apply such law in the
                  enforcement of this Agreement, the Registration Rights
                  Agreement, the Indenture or the Offered Securities, provided
                  that none of the provisions of this Agreement, the
                  Registration Rights Agreement, the Indenture or the Offered
                  Securities, as the case may be, or of applicable New York Law
                  is contrary to public policy as that term is applied by an
                  Ontario Court; provided, however, that, in matters of
                  procedure, the laws of the Province of Ontario will be
                  applied, and an Ontario Court will retain discretion to
                  decline to hear such action if it is contrary to public

                                       20
<PAGE>

                  policy, as that term is applied by an Ontario Court, for it to
                  do so; or if it is not the proper forum to hear such an
                  action, or if concurrent proceedings are being brought
                  elsewhere;

                           (xv) The laws of the Province of Ontario and the
                  federal laws of Canada applicable therein permit an action to
                  be brought before an Ontario Court on a final and conclusive
                  judgment in personam of a New York Court respecting the
                  enforcement of this Agreement, the Registration Rights
                  Agreement or the Indenture that is not impeachable as void or
                  voidable or otherwise ineffective under New York Law and for a
                  sum certain if: (a) the New York Court rendering such judgment
                  had jurisdiction over the Company, as recognized by an Ontario
                  Court; (b) such judgment was not obtained by fraud or in a
                  manner contrary to natural justice or other rule of law,
                  whether equitable, legal or statutory, and the enforcement
                  thereof would not be inconsistent with public policy as such
                  term is understood under the laws of the Province of Ontario
                  or contrary to any order made by the Attorney General of
                  Canada under the Foreign Extraterritorial Measures Act
                  (Canada) or by the Competition Tribunal under the Competition
                  Act (Canada); (c) the enforcement of such judgment does not
                  constitute, directly or indirectly, the enforcement of foreign
                  revenue, public or penal laws; and (d) the action to enforce
                  such judgment is commenced within the applicable limitation
                  period;

                           (xvi) To such counsel's knowledge, other than as set
                  out in the Offering Document, there is not pending or
                  threatened any action, suit, proceeding, inquiry, or
                  investigation, to which the Company is a party, or to which
                  the property of the Company is subject, before or brought by
                  any court or governmental agency or body in Canada which,
                  individually or in the aggregate, would result in a Material
                  Adverse Effect, or which would materially and adversely affect
                  the properties or assets of the Company or the consummation of
                  the transactions contemplated in this Agreement, the
                  Registration Rights Agreement and the Indenture or the
                  performance by the Company of its obligations thereunder;

                           (xvii) Each of this Agreement, the Registration
                  Rights Agreement and the Indenture has been duly authorized by
                  all necessary corporate action on the part of the Company and
                  each of the Canadian Subsidiaries to the extent that they are
                  governed by the federal law of Canada or the laws of Ontario
                  and to the extent that execution and delivery are matters
                  governed by Canadian federal or Ontario law, each of this
                  Agreement, the Registration Rights Agreement and the Indenture
                  have been executed and delivered by the Company and each
                  Canadian Subsidiary;

                           (xviii) The Offered Securities have been duly
                  authorized for issuance by all necessary corporate action on
                  the part of the Company, and assuming due authorization and
                  authentication of the Offered Securities by the trustee in
                  accordance with the Indenture and receipt in full of the
                  consideration for the issuance, the Offered Securities have
                  been duly issued and, to the extent that execution and
                  delivery are matters governed by Canadian federal or Ontario
                  law, the global certificate representing the Offered
                  Securities has been duly executed and delivered by the
                  Company;

                           (xix) The Guarantees have been duly authorized by all
                  necessary corporate action on the part of the Canadian
                  Subsidiaries and, to the extent that execution and delivery
                  are matters governed by Canadian federal or Ontario law, the
                  Guarantees have been duly executed and delivered by each of
                  the Canadian Subsidiaries;

                           (xx) No withholding tax imposed under the federal
                  laws of Canada or the laws of Ontario will be payable in
                  respect of the payment or crediting of the commissions

                                       21
<PAGE>

                  contemplated by this Agreement by the Company to a Purchaser
                  that is not, and is not deemed to be, a resident of Canada for
                  the purposes of the Income Tax Act (Canada), or of any
                  interest or deemed interest on the resale of Offered
                  Securities by a Purchaser to U.S. residents provided that the
                  Purchaser deals at arm's length with the Company (as such term
                  is understood for purposes of the Income Tax Act (Canada)),
                  and that such commissions are payable in respect of services
                  rendered by the Purchaser wholly outside of Canada that are
                  performed in the ordinary course of business carried on by the
                  Purchaser outside of Canada that includes the performance of
                  such services for a fee; and

                           (xxi) No goods and services tax imposed under the
                  federal laws of Canada or retail sales taxes imposed under the
                  laws of the Province of Ontario will be payable by the Company
                  or collectable by a Purchaser in respect of the payment of
                  commissions as contemplated by this Agreement to a Purchaser
                  that is a non-resident of Canada, provided that such
                  commissions are in respect of services performed by a
                  Purchaser wholly outside of Canada.

                  In addition, such counsel will state in a separate letter that
         it has no reason to believe that the Offering Circular, or any
         amendment or supplement thereto, as of the date hereof and as of the
         Closing Date, contained any untrue statement of a material fact or
         omitted to state any material fact necessary to make the statements
         therein not misleading; it being understood that such counsel need
         express no view as to the financial statements or other financial or
         statistical data contained in or omitted from the Offering Circular and
         that counsel's view will be based solely on Ontario law and its
         involvement as Canadian counsel.

                  (e) The Purchasers shall have received an opinion, dated the
         Closing Date, of Robert Lister, General Counsel to the Company, that:

                           (i) Each of Delaware Corporate Subsidiaries and each
                  of the Delaware LLC Subsidiaries (together with the Delaware
                  Corporate Subsidiaries, the "DELAWARE SUBSIDIARIES") and the
                  New York Subsidiary have been, to such counsel's knowledge,
                  duly incorporated or formed and is an existing corporation, or
                  other business organization, and is in good standing under the
                  laws of the jurisdiction of its incorporation or organization,
                  as the case may be, with all requisite power and authority
                  (corporate or otherwise) to own its properties and conduct its
                  business as described in the Offering Document; the Company
                  owns all of the issued and outstanding capital stock of each
                  of the Delaware Corporate Subsidiaries.

                           (ii) The execution, delivery and performance of this
                  Agreement, the Registration Rights Agreement, the Indenture
                  and the Guarantees to be endorsed on the by each of the
                  Delaware LLC Subsidiaries have been duly authorized by all
                  necessary corporate or other action on the part of each
                  Delaware LLC Subsidiary;

                           (iii) The execution, delivery and performance of this
                  Agreement, the Registration Rights Agreement and the Indenture
                  and the issuance of the Guarantees, in each case, by each of
                  the Delaware Subsidiaries and the New York Subsidiary will not
                  result in a breach or violation, or constitute a default
                  under, (i) any statute, rule, or regulation, or order of any
                  governmental agency or body or any court, domestic or foreign,
                  having jurisdiction over any Delaware Subsidiary or the New
                  York Subsidiary or any of their respective properties, (ii)
                  any material agreement or instrument to which the Delaware
                  Subsidiary is a part or by which any such Delaware Subsidiary
                  or the New York Subsidiary is subject, or (iii) the charter or
                  by-laws or limited liability company agreement, as applicable,
                  of each of the Delaware Subsidiaries and the New York
                  Subsidiary, except in

                                       22
<PAGE>

                  the case of clauses (i) and (ii), where such breach, violation
                  or default would not individually or in the aggregate,
                  reasonably be expected to have a Material Adverse Effect, and
                  each of the Delaware Subsidiaries and the New York Subsidiary
                  has the full power and authority to authorize, issue and
                  deliver the Guarantees as contemplated by this Agreement, the
                  Registration Rights Agreement and the Indenture;

                           (iv) Other than the Registration Rights Agreement, to
                  such counsel's knowledge after reasonable investigation, there
                  are no contracts, agreements or understandings between the
                  Company or any Guarantor and any person granting such person
                  the right to require the Company or any Guarantor to file a
                  registration statement under the Securities Act with respect
                  to any securities of the Company or any Guarantor or to
                  require the Company or any Guarantor to include such
                  securities with the Securities registered pursuant to any
                  Registration Statement;

                           (v) To such counsel's knowledge, except as disclosed
                  in the Offering Document, there are no pending, threatened or
                  contemplated actions, suits, proceedings, inquiries, or
                  investigations against or affecting any subsidiary or any of
                  their respective properties that, if determined adversely to
                  any subsidiary, would reasonably be expected to, individually
                  or in the aggregate, have a Material Adverse Effect, or would
                  materially and adversely affect the ability of the Company or
                  the Guarantors to perform their obligations under this
                  Agreement, the Registration Rights Agreement and the
                  Indenture;

                  (f) The Purchasers shall have received an opinion, dated the
         Closing Date, of Sirote & Permutt, P.C., special Alabama counsel to
         Sonics Associates, Inc., of Jaburg & Wilk, P.C., special Arizona
         counsel to IMAX Theatre Management (Scottsdale), Inc., of Dann Pecar
         Newman Kleiman, P.C., special Indiana counsel to IMAX Indianapolis LLC,
         of Lionel Sawyer & Collins, special Nevada counsel to IMAX Forum Ride,
         Inc. and of Cameron & Mittleman LLP, special Rhode Island counsel to
         IMAX Rhode Island Limited Partnership (each the "NON-DELAWARE
         GUARANTOR"), that, as applicable:

                           (i) The Non-Delaware Guarantor has been duly
         incorporated or formed and is an existing corporation or other business
         organization, in good standing under the laws of the jurisdiction of
         its incorporation or organization, as the case may be, with all
         requisite power and authority (corporate or otherwise) to own its
         properties and conduct its business as described in the Offering
         Document;

                           (ii) The execution, delivery and performance of this
         Agreement, the Registration Rights Agreement, the Indenture and the
         Guarantee by the Non-Delaware Guarantor have been duly authorized by
         all necessary corporate or other action on the part of the Non-Delaware
         Guarantor; and

                           (iii) The execution, delivery and performance of this
         Agreement, the Registration Rights Agreement and the Indenture, and the
         issuance of the Guarantees, in each case, by the Non-Delaware Guarantor
         will not result in a breach or violation, or constitute a default under
         any U.S. federal or applicable state statute, rule, or regulation, or
         the articles or formation documents or by-laws or organizational
         documents of each of the Non-Delaware Guarantor.

                  (g) The Purchasers shall have received from Skadden, Arps,
         Slate, Meagher & Flom LLP, counsel for the Purchasers, such opinion or
         opinions, dated the Closing Date, with respect to the validity of the
         Offered Securities, the Offering Circular, the exemption from
         registration for the offer and sale of the Offered Securities by the
         Company to the several Purchasers and the resales by the several
         Purchasers as contemplated hereby and other related matters as CSFB may
         reasonably require, and the Company shall have furnished to such
         counsel such documents as they reasonably

                                       23
<PAGE>

         request for the purpose of enabling them to pass upon such matters. In
         rendering such opinion, Skadden, Arps, Slate, Meagher & Flom LLP may
         rely as to the incorporation of the Company and all other matters
         governed by Canadian law upon the opinion of McCarthy Tetrault LLP
         referred to above.

                  (h) The Purchasers shall have received from Osler, Hoskin &
         Harcourt LLP, Canadian counsel for the Purchasers, such opinion, dated
         the Closing Date, with respect to the incorporation of the Company, the
         validity of the Offered Securities and such matters as CSFB may
         reasonably require, and the Company shall have furnished to such
         counsel such documents as they reasonably request for the purpose of
         enabling them to pass on such matters.

                  (i) The Purchasers shall have received a certificate, dated
         the Closing Date, of one of the Co-Chief Executive Officers and the
         Chief Financial Officer of the Company and each Guarantor in which such
         officers, to the best of their knowledge, shall state that the
         representations and warranties of the Company and the Guarantors in
         this Agreement are true and correct as of such Closing Date, that the
         Company and the Guarantors have complied with all agreements and
         satisfied all conditions on its part to be performed or satisfied
         hereunder at or prior to the Closing Date, and that, subsequent to the
         date of this Agreement there has been no material adverse change, nor
         any development or event involving a prospective material adverse
         change, in the condition (financial or other), business, properties or
         results of operations of the Company and the subsidiaries taken as a
         whole except as described in such certificate.

                  (j) The Purchasers shall have received a letter, dated the
         Closing Date, of PricewaterhouseCoopers LLP which meets the
         requirements of subsection (a) of this Section, except that the
         specified date referred to in such subsection will be a date not more
         than three business days prior to the Closing Date for the purposes of
         this subsection.

                  (k) The Registration Rights Agreement shall have been signed
         and delivered on the Closing Date by the Company and each of the
         Guarantors.

         Documents described as being "in the agreed form" are documents which
are in the forms which have been initialed for the purpose of identification by
Skadden, Arps, Slate, Meagher & Flom LLP, copies of which are held by the
Company and CSFB, with such changes as CSFB may approve.

         The Company will furnish the Purchasers with such conformed copies of
such opinions, certificates, letters and documents as the Purchasers reasonably
request. CSFB may in its sole discretion waive on behalf of the Purchasers
compliance with any conditions to the obligations of the Purchasers hereunder,
whether in respect of an Optional Closing Date or otherwise.

         7. Indemnification and Contribution. (a) The Company and the Guarantors
will indemnify and hold harmless each Purchaser, its partners, directors and
officers and each person, if any, who controls such Purchaser within the meaning
of Section 15 of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which such Purchaser may become subject, under
the Securities Act or the Exchange Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in the Offering Document, or any amendment or supplement thereto,
or any related preliminary offering circular or arise out of or are based upon
the omission or alleged omission to state therein a material fact necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, including any losses, claims, damages or
liabilities arising out of or based upon the Company's or any Guarantor's
failure to perform its obligations under Section 5(a) of this Agreement, and
will reimburse each Purchaser for any legal or other expenses reasonably
incurred by such Purchaser in connection with investigating or defending any
such loss, claim, damage, liability or action as such expenses

                                       24
<PAGE>

are incurred; provided, however, that neither the Company nor any of the
Guarantors will be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement in or omission or alleged omission from any of such
documents in reliance upon and in conformity with written information furnished
to the Company by any Purchaser through CSFB specifically for use therein, it
being understood and agreed that the only such information consists of the
information described as such in subsection (b) below; provided, further,
however, that the foregoing indemnity agreement with respect to losses, claims,
damages or liabilities shall not inure to the benefit of any Purchaser (or any
person controlling any Purchaser) with respect to any losses, claims, damages
arising out of or based upon (x) any untrue statement or alleged untrue
statement of any material fact in the Offering Document or (y) the omission or
alleged omission to state in the Offering Document a material fact necessary in
order to make the statements therein, in light of the circumstances under which
they were made, not misleading, if: (1) the Company furnished sufficient copies
of the Offering Document or an amended Offering Document on a timely basis to
permit delivery of the Offering Document or an amended Offering Document to all
persons purchasing notes from the Purchasers in the initial resale of such notes
(such person "Initial Resale Purchasers") at or prior to the written
confirmation of the sale of the Offered Securities to such person; (2) the
Initial Resale Purchaser asserting such losses, claims, damages or liabilities
purchased Offered Securities in the initial resale from the Purchasers and a
copy of the Offering Document or an amended Offering Document was not sent or
given by or on behalf of such Purchaser to such Initial Resale Purchaser; and
(3) the Offering Document or an amended Offering Document would have cured the
defect giving rise to such losses, claims, damages or liabilities.

                  (b) Each Purchaser will severally and not jointly indemnify
and hold harmless the Company, the Guarantors, their respective directors and
officers and each person, if any, who controls the Company or the Guarantors
within the meaning of Section 15 of the Securities Act, against any losses,
claims, damages or liabilities to which the Company may become subject, under
the Securities Act or the Exchange Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material
fact contained in the Offering Document, or any amendment or supplement thereto,
or any related preliminary offering circular, or arise out of or are based upon
the omission or the alleged omission to state therein a material fact required
to be stated therein or necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading, in
each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by such
Purchaser through CSFB specifically for use therein, and will reimburse any
legal or other expenses reasonably incurred by the Company in connection with
investigating or defending any such loss, claim, damage, liability or action as
such expenses are incurred, it being understood and agreed that the only such
information furnished by any Purchaser consists of (i) the following information
in the Offering Document furnished on behalf of each Purchaser: under the
caption "Plan of Distribution" paragraphs three, seven, eleven and thirteen, the
third sentence of the tenth paragraph and the second sentence of the twelfth
paragraph; provided, however, that the Purchasers shall not be liable for any
losses, claims, damages or liabilities arising out of or based upon the
Company's failure to perform its obligations under Section 5(a) of this
Agreement.

                  (c) Promptly after receipt by an indemnified party under this
Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under subsection (a) or (b) above, notify the indemnifying party of the
commencement thereof; but the failure to notify the indemnifying party shall not
relieve it from any liability that it may have under subsection (a) or (b) above
except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided
further that the failure to notify the indemnifying party shall not relieve it
from any liability that it may have to an indemnified party otherwise than under
subsection (a) or (b) above. In case any such action is brought against any
indemnified party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein and, to
the extent that it may wish, jointly with any other indemnifying party

                                       25
<PAGE>

similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent
of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so
to assume the defense thereof, the indemnifying party will not be liable to such
indemnified party under this Section for any legal or other expenses
subsequently incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation. No indemnifying party
shall, without the prior written consent of the indemnified party (which consent
shall not be unreasonably withheld), effect any settlement of any pending or
threatened action in respect of which any indemnified party is or could have
been a party and indemnity could have been sought hereunder by such indemnified
party unless such settlement includes (i) an unconditional release of such
indemnified party from all liability on any claims that are the subject matter
of such action and (ii) does not include a statement as to or an admission of
fault, culpability or failure to act by or on behalf of any indemnified party.
No indemnified party shall, without the prior written consent of the
indemnifying party, effect any settlement or compromise of, or consent to the
entry of any judgment with respect to any pending or threatened action or claim
in respect of which indemnification or contribution may be sought hereunder
unless such settlement, compromise or judgment (i) includes an unconditional
release of the indemnifying party from all liability on any claims that are the
subject matter of such action and (ii) does not include a statement as to or an
admission of fault, culpability or failure to act by or on behalf of any
indemnifying party, which consent shall not be unreasonably withheld.
Notwithstanding the foregoing sentence, if at any time an indemnified party
shall have requested an indemnifying party to reimburse the indemnified party
for fees and expenses of counsel as contemplated by this Section 7(c), the
indemnified party may effect a settlement or compromise of, or consent to the
entry of any judgment with respect to any pending or threatened action or claim
in respect of which indemnification or contribution may be sought hereunder
without the consent of the indemnifying party and the indemnifying party agrees
that it shall be liable for any settlement of any proceeding effected without
its written consent if (i) such settlement is entered into more than 45 days
after receipt by such indemnifying party of the aforesaid request, (ii) such
indemnifying party shall have received notice of the terms of such settlement at
least 30 days prior to such settlement being entered into and (iii) such
indemnifying party shall not have reimbursed the indemnified party in accordance
with such request prior to the date of such settlement; provided that an
indemnifying party shall not be liable for any such settlement effected without
its consent it such indemnifying party, prior to the date of such settlement,
(1) reimburses such indemnified party in accordance with such request for the
amount of such fees and expenses of counsel as the indemnifying party believes
in good faith to be reasonable, and (2) provides written notice to the
indemnified party that the indemnifying party disputes in good faith the
reasonableness of the unpaid balance of such fees and expenses.

                  (d) If the indemnification provided for in this Section is
unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsection (a) or (b) above (i) in
such proportion as is appropriate to reflect the relative benefits received by
the Company and the Guarantors on the one hand and the Purchasers on the other
from the offering of the Offered Securities or (ii) if the allocation provided
by clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company and the Guarantors on the one
hand and the Purchasers on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities as well
as any other relevant equitable considerations. The relative benefits received
by the Company and the Guarantors on the one hand and the Purchasers on the
other shall be deemed to be in the same proportion as the total net proceeds
from the offering (before deducting expenses) received by the Company bear to
the total discounts and commissions received by the Purchasers from the Company
under this Agreement. The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to
information supplied by the Company or the Guarantors or the Purchasers and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission. The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities
referred to in

                                       26
<PAGE>

the first sentence of this subsection (d) shall be deemed to include any legal
or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any action or claim which is the subject of this
subsection (d). Notwithstanding the provisions of this subsection (d), no
Purchaser shall be required to contribute any amount in excess of the amount by
which the total discounts, fees and commissions received by such Purchaser
exceeds the amount of any damages which such Purchaser has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. The Purchasers' obligations in this subsection (d) to
contribute are several in proportion to their respective purchase obligations
and not joint.

                  (e) The obligations of the Company and the Guarantors under
this Section shall be in addition to any liability which the Company and the
Guarantors may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls any Purchaser within the
meaning of the Securities Act or the Exchange Act; and the obligations of the
Purchasers under this Section shall be in addition to any liability which the
respective Purchasers may otherwise have and shall extend, upon the same terms
and conditions, to each person, if any, who controls the Company within the
meaning of the Securities Act or the Exchange Act.

         8. Default of Purchasers. If any Purchaser or Purchasers default in
their obligations to purchase Offered Securities hereunder and the aggregate
principal amount of Offered Securities that such defaulting Purchaser or
Purchasers agreed but failed to purchase does not exceed 10% of the total
principal amount of Offered Securities, CSFB may make arrangements satisfactory
to the Company for the purchase of such Offered Securities by other persons,
including any of the Purchasers, but if no such arrangements are made by the
Closing Date, the non-defaulting Purchasers shall be obligated severally, in
proportion to their respective commitments hereunder, to purchase the Offered
Securities that such defaulting Purchasers agreed but failed to purchase. If any
Purchaser or Purchasers so default and the aggregate principal amount of Offered
Securities with respect to which such default or defaults occur exceeds 10% of
the total principal amount of Offered Securities and arrangements satisfactory
to CSFB and the Company for the purchase of such Offered Securities by other
persons are not made within 36 hours after such default, this Agreement will
terminate without liability on the part of any non-defaulting Purchaser or the
Company, except as provided in Section 9. As used in this Agreement, the term
"Purchaser" includes any person substituted for a Purchaser under this Section.
Nothing herein will relieve a defaulting Purchaser from liability for its
default.

         9. Survival of Certain Representations and Obligations. The respective
indemnities, agreements, representations, warranties and other statements of the
Company or the Guarantors or their respective officers and of the several
Purchasers set forth in or made pursuant to this Agreement will remain in full
force and effect, regardless of any investigation, or statement as to the
results thereof, made by or on behalf of any Purchaser, the Company or any of
their respective representatives, officers or directors or any controlling
person, and will survive delivery of and payment for the Offered Securities. If
this Agreement is terminated pursuant to Section 8 or if for any reason the
purchase of the Offered Securities by the Purchasers is not consummated, the
Company and the Guarantors shall remain responsible for the reasonable expenses
to be paid or reimbursed by it pursuant to Section 5 and the respective
obligations of the Company and the Guarantors and the Purchasers pursuant to
Section 7 shall remain in effect. If the purchase of the Offered Securities by
the Purchasers is not consummated for any reason other than solely because of
the termination of this Agreement pursuant to Section 8 or the occurrence of any
event specified in clause (iii), (iv), (v), (vi) or (vii) of Section 6(b), the
Company and the Guarantors will reimburse the Purchasers for all reasonable
out-of-pocket expenses (including reasonable fees and disbursements of counsel)
reasonably incurred by them in connection with the offering of the Offered
Securities .

         10. Notices. All communications hereunder will be in writing and, if
sent to the Purchasers will be mailed, delivered or telecopied and confirmed to
the Purchasers, c/o Credit Suisse First Boston LLC, Eleven Madison Avenue, New
York, N.Y. 10010-3629, Attention: Transactions Advisory Group, or, if sent to
the Company or the Guarantors, will be mailed, delivered or telecopied and
confirmed to it at IMAX Corporation,

                                       27
<PAGE>

2525 Speakman Drive, Sheridan Science and Technology Park, Mississauga, Ontario
L5K 1B1, Canada, Attention: General Counsel; provided, however, that any notice
to a Purchaser pursuant to Section 7 will be mailed, delivered or telecopied and
confirmed to such Purchaser.

         11. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the
controlling persons referred to in Section 7, and no other person will have any
right or obligation hereunder, except that holders of Offered Securities shall
be entitled to enforce the agreements for their benefit contained in the second
and third sentences of Section 5(b) hereof against the Company as if such
holders were parties thereto.

          12. Representation of Purchasers. You will act for the several
Purchasers in connection with this purchase, and any action under this Agreement
taken by you will be binding upon all the Purchasers and the Company shall be
authorized to act upon any such action by or on behalf of the Purchasers.

         13. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all such
counterparts shall together constitute one and the same Agreement.

         14. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

         The Company and each of the Guarantors hereby submits to the
non-exclusive jurisdiction of the Federal and state courts in the Borough of
Manhattan in The City of New York in any suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby.

         The obligation of the Company or any of the Guarantors in respect of
any sum due to any Purchaser shall, notwithstanding any judgment in a currency
other than United States dollars, not be discharged until the first business
day, following receipt by such Purchaser of any sum adjudged to be so due in
such other currency, on which (and only to the extent that) such Purchaser may
in accordance with normal banking procedures purchase United States dollars with
such other currency; if the United States dollars so purchased are less than the
sum originally due to such Purchaser hereunder, the Company and each Guarantor
agree, as a separate obligation and notwithstanding any such judgment, to
indemnify such Purchaser against such loss. If the United States dollars so
purchased are greater than the sum originally due to such Purchaser hereunder,
such Purchaser agrees to pay to the Company an amount equal to the excess of the
dollars so purchased over the sum originally due to such Purchaser hereunder.

                            [signature pages follow]

                                       28
<PAGE>

         If the foregoing is in accordance with the Purchasers' understanding of
our agreement, kindly sign and return to us one of the counterparts hereof,
whereupon it will become a binding agreement between the Company, the Guarantors
and the several Purchasers in accordance with its terms.

                               Very truly yours,

                               ISSUER:

                               IMAX Corporation

                               By  /s/  G. Mary Ruby
                                 -----------------------------------
                               Name:    G. Mary Ruby
                               Title:   Sr. Vice President, Legal Affairs

                               By  /s/  Edward MacNeil
                                 -----------------------------------
                               Name: Edward MacNeil
                               Title:   Vice President Finance, Special Projects

                               GUARANTORS:

                               David Keighley Productions 70MM Inc.

                               By  /s/  G. Mary Ruby
                                 -----------------------------------
                               Name:    G. Mary Ruby
                               Title:   Secretary

                               By  /s/  Edward MacNeil
                                 -----------------------------------
                               Name: Edward MacNeil
                               Title: Vice President

                               IMAX II U.S.A. Inc.

                               By  /s/  G. Mary Ruby
                                 -----------------------------------
                               Name:    G. Mary Ruby
                               Title:   Secretary

                               By  /s/  Edward MacNeil
                                 -----------------------------------
                               Name: Edward MacNeil
                               Title: Vice President

                                       29
<PAGE>

                              IMAX Chicago Theatre LLC
                              By its Managing Member
                              IMAX Theatre Holding (California I) Co.

                              By  /s/  G. Mary Ruby
                                -----------------------------------
                              Name:    G. Mary Ruby
                              Title:   Secretary

                              By  /s/  Edward MacNeil
                                -----------------------------------
                              Name: Edward MacNeil
                              Title: Vice President

                              IMAX Forum Ride, Inc.

                              By  /s/  G. Mary Ruby
                                -----------------------------------
                              Name:    G. Mary Ruby
                              Title:   Secretary

                              By  /s/  Edward MacNeil
                                -----------------------------------
                              Name: Edward MacNeil
                              Title: Vice President

                              IMAX Minnesota Holding Co.

                              By  /s/  G. Mary Ruby
                                -----------------------------------
                              Name:    G. Mary Ruby
                              Title:   Secretary

                              By  /s/  Edward MacNeil
                                -----------------------------------
                              Name: Edward MacNeil
                              Title: Vice President

                              IMAX Rhode Island Limited Partnership
                              By its General Partner
                              IMAX Providence General Partner Co.

                              By  /s/  G. Mary Ruby
                                -----------------------------------
                              Name:    G. Mary Ruby
                              Title:   Secretary

                              By  /s/  Edward MacNeil
                                -----------------------------------
                              Name: Edward MacNeil
                              Title: Vice President

                                       30
<PAGE>

                             IMAX Sandde Animation Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Scribe Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Space Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Holding Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       31
<PAGE>

                             IMAX Theatre Holdings (OEI) Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Management Company

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Services Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX U.S.A. Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       32
<PAGE>

                             Miami Theatre LLC
                             By its Managing Member
                             IMAX Theatre Holding (California I) Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Mitey Cinema Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Mountainview Theatre Management Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Nyack Theatre LLC
                             By its Managing Member
                             IMAX Theatre Holding (Nyack I) Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       33
<PAGE>

                             Ridefilm Corporation

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Sacramento Theatre LLC
                             By its Managing Member
                             IMAX Theatre Holding (California I) Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Sonics Associates, Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Starboard Theatres Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       34
<PAGE>

                             Tantus Films Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Wire Frame Films Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             1329507 Ontario Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             924689 Ontario Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       35
<PAGE>

                             IMAX (Titanica) Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX (Titanic) Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Music Ltd.

                             By  /s/  G. Mary Ruby
                                -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Holding (Brossard) Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       36
<PAGE>

                             IMAX Film Holding Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Indianapolis LLC

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Pictures Corporation

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Immersive Entertainment Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       37
<PAGE>

                             IMAX Providence General Partner Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Providence Limited Partner Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Holding (California I) Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Holding (California II) Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       38
<PAGE>

                             IMAX Theatre Holding (Nyack I) Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Holding (Nyack II) Co.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             IMAX Theatre Management (Scottsdale), Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Panda Productions Inc.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       39
<PAGE>

                             Strategic Sponsorship Corporation

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             Tantus II Films Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                             RPM Pictures Ltd.

                             By  /s/  G. Mary Ruby
                               -----------------------------------
                             Name:    G. Mary Ruby
                             Title:   Secretary

                             By  /s/  Edward MacNeil
                               -----------------------------------
                             Name: Edward MacNeil
                             Title: Vice President

                                       40
<PAGE>

The foregoing Purchase Agreement is hereby
 confirmed and accepted as of the date
 first above written.

CREDIT SUISSE FIRST BOSTON LLC

         By  /s/  Thomas C. Davidov
           -------------------------------
         Name:    Thomas C. Davidov
         Title:   Director

         Acting on behalf of itself
         and as the sole Representative
         of the several Purchasers

                                       41
<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
                                                                                   PRINCIPAL AMOUNT OF
                  MANAGER                                                          OFFERED SECURITIES
                  -------                                                          ------------------
<S>                                                                                 <C>
Credit Suisse First Boston LLC........................................               $128,400,000
Jefferies & Company, Inc..............................................                 14,864,000
Wachovia Capital Markets, LLC.........................................                 11,152,000
U.S. Bancorp Piper Jaffray Inc........................................                  5,584,000
                                                                                     ------------
                 Total.......................................                        $160,000,000
                                                                                     ============
</TABLE>

                                      A-1
<PAGE>

                                   SCHEDULE B

                                  SUBSIDIARIES

COMPANY NAME
1329507 Ontario Inc.
924689 Ontario Inc.
Big Frame Theatre Limited Partnership
David Keighley Productions 70 MM Inc.
Imax (Netherlands) B.V.
Imax (Titanic) Inc.
Imax (Titanica) Ltd.
IMAX Chicago Theatre LLC
Imax Entertainment Pte Ltd.
Imax Film Holding Co.
Imax Forum Ride, Inc.
Imax II U.S.A. Inc.
Imax Indianapolis LLC
Imax Japan Inc.
Imax Minnesota Holding Co.
Imax Music Ltd.
Imax Pictures Corporation
Imax Providence General Partner Co.
Imax Providence Limited Partner Co.
Imax Rhode Island Limited Partnership
Imax Sandde Animation Inc.
Imax Scribe Inc.
Imax Space Ltd.
Imax Theatre Holding (Brossard) Inc.
Imax Theatre Holding (California I) Co.
Imax Theatre Holding (California II) Co.
Imax Theatre Holding (Nyack I) Co.
Imax Theatre Holding (Nyack II) Co.
Imax Theatre Holding (OEI), Inc.
Imax Theatre Holding Co.
Imax Theatre Management (Scottsdale), Inc.
Imax Theatre Management Company
Imax Theatre Services Ltd.
Imax U.S.A. Inc.
Immersive Entertainment Inc.
Miami Theatre LLC
Mitey Cinema Inc.
Mountainview Theatre Management Ltd.
Nyack Theatre LLC
Nyack Theatre LLC
Panda Productions Inc.
Ridefilm Corporation
RPM Pictures Ltd.
Sacramento Theatre LLC
Sonics Associates, Inc.
Starboard Theatres Ltd.
Strategic Sponsorship Corporation
Tantus Films Ltd.
Tantus II Films Ltd.
Wire Frame Films Ltd.

                                      B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]