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                                                                   Exhibit 10.29

DEBENTURE

Issued to:        ROYNAT CAPITAL INC.
                  40 KING STREET WEST, 26TH FLOOR
                  TORONTO, ONTARIO

                  FACSIMILE NO. (416) 933-2783

                       REGAL GREETINGS & GIFTS CORPORATION
                            939 EGLINTON AVENUE EAST
                                TORONTO, ONTARIO
                                     M4G 2L6
                             FACSIMILE NO. (      )

                                    DEBENTURE
                                    ---------

$7,000,000                                                    December  14, 2001

1.       Regal Greetings & Gifts Corporation (the "Company") for value received
hereby promises to pay to RoyNat Capital Inc. ("RoyNat"), at its address
specified above, the principal amount of Seven Million Dollars ($7,000,000) in
the manner hereinafter provided, together with all other moneys which may from
time to time be owing hereunder or pursuant hereto.

2.       PRINCIPAL PAYMENTS. Subject to the provisions of this Debenture, the
principal amount of this Debenture shall become due and payable by twelve (12)
quarterly instalments, each in the amount of $150,000, payable on the 15th day
of the last month of each quarterly period from and including January 15, 2004
to and including October 15, 2006 and the balance of the said principal amount,
together with interest thereon and all other monies owing hereunder, shall
become due and payable on the 15th day of January, 2007.

3.       INTEREST. Interest shall be payable on the 15th day of each month on
the balance from time to time outstanding of the principal amount of this
Debenture, any overdue interest and any other monies due and payable hereunder,
both before and after maturity, default or judgment, at 12% per annum (the "Loan
Rate") calculated and compounded monthly, computed from the respective dates of
advance of the moneys by RoyNat to the Company until payment in full of all
moneys owing hereunder. The first interest payment date shall be the 15th day of
the month in which the first advance is made by RoyNat hereunder or, if the
first advance is made after the 15th day of a month, the first interest payment
date shall be the 15th day of the next succeeding month. At the option of
RoyNat, interest accrued may be deducted from proceeds of advances hereunder.

4.       REDEMPTION. This Debenture shall be non-redeemable, in whole or in
part, unless RoyNat, in its sole and absolute discretion and on terms
satisfactory to it in all respects, determines otherwise.

5.       PARTIAL PAYMENTS. In case less than the total principal amount of this
Debenture is redeemed at any time, the principal amount so redeemed shall be
credited against the principal payable hereunder in inverse order of maturity.

6.       SECURITY. As security for the payment of the principal, interest and
all other moneys from time to time payable under this Debenture, and the
performance by the Company of all its obligations hereunder and to better secure
the principal, interest and other monies from time to time secured hereunder,
but subject to Permitted Encumbrances and to the exception as to leaseholds
hereinafter contained, the Company hereby grants a security interest in and
grants, assigns, mortgages and charges, as and by way of a first, fixed and
specific mortgage and charge to and in favour of RoyNat:

         (a)      all real and immoveable property, both freehold and leasehold,
                  now owned or hereafter acquired by the Company, together with
                  all buildings, erections, fixed machinery and fixed equipment
                  presently situated thereon or which may at any time hereafter
                  be constructed or placed thereon or used in connection
                  therewith, including without limitation the property described
                  in Schedule "B" hereto;

         (b)      all furniture, machinery, equipment, vehicles, accessories and
                  other tangible personal property (other than Inventory) now
                  owned or hereafter acquired by the Company or in respect of
                  which the Company now or hereafter has any right, title or
                  interest, together with any proceeds of sale or disposition
                  thereof, and including without limitation the property
                  described in Schedule "C" hereto.

         And for the same consideration and purposes and subject to the same
exceptions, the Company hereby charges as and by way of a first floating charge
to and in favour of RoyNat the undertaking of the Company and all its property
and assets for the time being, both present and future, and of whatsoever nature
and wherever situate (other than property and assets from time to time
effectively subjected to the fixed and specific mortgages and charges created
hereby or by any instrument supplemental hereto).

         Provided that such floating charge shall not prevent the Company from
time to time until the security hereby constituted shall have become enforceable
from selling, leasing or otherwise disposing of the property, rights and assets
included in such floating charge or from making expenditures with a view to the
expansion of its business or from giving security constituting Permitted
Encumbrances, all in the ordinary course of its business and subject to the
provisions of this Debenture. Notwithstanding any other provision of this
Debenture except as provided in the foregoing sentence, the security interests
constituted hereby and by any supplemental security granted to RoyNat shall not
be subordinate to, nor is there any intention to subordinate such security
interests to, any Permitted Encumbrances or security interests held by others.

         All security interests created by this Debenture attach immediately
upon execution of the Debenture. The attachment of the floating charge has not
been postponed and the floating charge shall attach to any particular property
intended to be subject to it as soon as the Company has rights in such property.

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         All property and assets of the Company whether specifically charged or
subjected to the floating charge are hereinafter referred to as the "Mortgaged
Premises".

7.       EXCEPTION AS TO LEASEHOLDS. It is hereby declared that the last day of
any term of years reserved by any lease or sublease, verbal or written, or any
agreement therefor, now held or hereafter acquired by the Company is excepted
out of the Mortgaged Premises, but the Company shall stand possessed of any such
reversion upon trust to assign and dispose thereof as RoyNat may direct.

8.       PAYMENTS AND NOTICE. Any payments not received by RoyNat by two o'clock
p.m. on a Business Day shall be deemed to have been received on the next
Business Day. Any notice required or desired to be given hereunder or under any
Offer of Finance or under any instrument supplemental hereto shall be in writing
and may be given by personal delivery, by facsimile or other means of electronic
communication or by sending the same by registered mail, postage prepaid, to
RoyNat or to the Company at their respective addresses set out above and, in the
case of electronic communication, to the facsimile numbers set out above. Any
notice so delivered shall be conclusively deemed given when personally delivered
and any notice sent by facsimile or other means of electronic transmission shall
be deemed to have been delivered on the Business Day following the sending of
the notice, and any notice so mailed shall be conclusively deemed given on the
third Business Day following the day of mailing, provided that in the event of a
known disruption of postal service, notice shall not be given by mail. Any
address for notice or payments herein referred to may be changed by notice in
writing given pursuant hereto.

9.       COVENANTS.

         (a)      This Debenture is issued subject to and with the benefit of
                  all the covenants, terms and conditions in Schedule "A" hereto
                  which Schedule forms a part hereof.

         (b)      In addition to such covenants, terms and conditions, the
                  Company covenants with RoyNat that so long as this Debenture
                  remains outstanding the Company shall:

                  (i)      execute and deliver all such documents as may be
                           necessary to maintain in force the pre-authorized
                           payment system specified in the Offer of Finance;

                  (ii)     not permit the breach of any financial or other
                           material covenant of the Company made in favour of
                           the Bank of Nova Scotia or any other senior operating
                           lender of the Company;

                  (iii)    maintain Consolidated Working Capital at a minimum
                           ratio of 1.75:1;

                  (iv)     not enter into any transaction (whether by way of
                           reconstruction, reorganization, consolidation,
                           amalgamation, merger, transfer, sale, lease or
                           otherwise) whereby all or substantially all of its
                           undertaking or assets (including all or part of the
                           Mortgaged Premises) would become the property of any
                           other person or any person resulting or continuing
                           from such transaction without the prior written
                           consent of RoyNat. For the purposes of this
                           Debenture, person is to be broadly interpreted and
                           shall include an individual, a company, a
                           partnership, a trust, an unincorporated organization,
                           a joint venture, and the executors, administrators or
                           other legal representatives of an individual in such
                           capacity;

                  (v)      not, nor shall it permit any of its subsidiaries to,
                           create, incur, assume or suffer to be created,
                           incurred or assumed, or otherwise become directly or
                           indirectly liable upon or in respect of, or suffer to
                           exist, Funded Indebtedness, unless RoyNat otherwise
                           consents in writing; and

                  (vi)     not act or fail to act in any way which would result
                           in any breach of the covenants set out in Section
                           2.1.10 of the unanimous shareholders agreement
                           between the Company, RoyNat, MDC Corporation Inc.,
                           RGG Acquisition Inc. and McGuggan LLP dated as of
                           December 14, 2001.

10.      OFFER OF FINANCE. This Debenture is being issued by the Company to
RoyNat pursuant to the terms of a certain letter agreement between RGG
Acquisition Inc. and RoyNat dated December 5, 2001 (such letter agreement
including any amendments thereto being herein called the "Offer of Finance").
All terms and conditions of the Offer of Finance shall remain in full force and
effect, except to the extent inconsistent with the provisions of this Debenture.

11.      MAXIMUM RECOVERY. If any amounts, whether on account of interest, fees,
bonus or additional consideration, becomes payable to or is received by RoyNat
pursuant to this Debenture, the Offer of Finance, any other security document or
other agreement which would exceed the maximum amount recoverable under
applicable law on moneys advanced by RoyNat:

         (a)      any amounts so payable shall be reduced and are hereby limited
                  to the maximum amount recoverable under applicable law;

         (b)      any amounts so received by RoyNat shall, at RoyNat's option,
                  either be returned to the Company or, notwithstanding Section
                  4 hereof, be deemed to have been received by RoyNat as a
                  partial redemption of this Debenture and shall be credited
                  against principal payable hereunder in inverse order of
                  maturity; and

         (c)      if paragraph (a) requires the reduction in an amount or
                  amounts payable to RoyNat, RoyNat in its sole discretion shall
                  determine which amount or amounts shall be reduced to ensure
                  compliance with this Section 11.

12.      EXTENSIONS AND AMENDMENTS. Any agreement for the extension of the time
of payment of the moneys hereby secured or any part thereof made at, before or
after maturity, and prior to the execution of a discharge or release of this
Debenture, or any agreement for altering the term, rate of interest (whether
increased or decreased), the amount of the principal payments hereunder or any
other covenant or condition hereof, need not be registered in any office of
public record but shall be effectual and binding upon the Company and upon every
subsequent mortgagee, chargee, encumbrancer or other person claiming an interest
in the Mortgaged Premises or any part thereof when executed by the Company and
delivered to RoyNat.

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13.      RECEIPT. The Company hereby acknowledges receipt of a true copy of this
Debenture and, to the extent permitted by law, waives all rights to receive from
RoyNat a copy of any financing statement or financing change statement filed, or
any verification statement received, at any time in respect of this Debenture or
any supplemental or collateral security granted to RoyNat.

14.      BINDING EFFECT, GOVERNING LAW AND HEADINGS. These presents are binding
upon the parties hereto and their respective successors and assigns. This
Debenture shall be governed by and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable therein. The division of
this Debenture into sections and the insertion of headings are for convenience
of reference only and shall not affect the construction or interpretation of
this Debenture.

15.      INVALIDITY, ETC. Each of the provisions contained in this Debenture is
distinct and severable and a declaration of invalidity, illegality or
unenforceability of any such provision or part thereof by a court of competent
jurisdiction shall not affect the validity or enforceability of any other
provision of Debenture.

16.      INTEREST CALCULATION. Interest payable on the Debenture shall be
payable both before and after demand, default and judgment at the Loan Rate with
interest on overdue interest at the same rate. For the purposes of THE INTEREST
ACT (Canada), the yearly rate of interest to which the rate of interest per
annum is payable on or is in respect of amounts owing on the Debenture shall be
calculated on the basis of a 365 day year.

17.      TRANSFERS. This Debenture and the rights hereunder are transferable by
RoyNat without the consent of the Company. In the event that RoyNat effects a
partial transfer of this Debenture, RoyNat shall advise the Company of the name,
address and facsimile number of the transferee, the portion of this Debenture
transferred and the date of transfer and the Company shall forthwith thereafter
issue RoyNat and the transferee a replacement Debenture with terms identical to
this Debenture (save for the principal amount owing) without cost or charge to
RoyNat or the transferee, and this Debenture shall thereafter be deemed
surrendered. RoyNat and any transferee hereof shall be entitled to the rights
evidenced by this Debenture free from all equities or rights of set-off or
counterclaim between the Corporation and the original or any intermediate holder
of this Debenture.

FOR ALBERTA AND SASKATCHEWAN

18.      WAIVER OF CERTAIN LEGISLATION. The Company hereby declares and
covenants that:

         (a)      THE LAND CONTRACTS (ACTIONS) ACT (Saskatchewan) shall have no
                  application to any action as defined in THE LAND CONTRACTS
                  (ACTIONS) ACT with respect to this Debenture, any of the
                  Mortgaged Premises or any supplemental or collateral security
                  granted to RoyNat;

         (b)      THE LIMITATION OF CIVIL RIGHTS ACT (Saskatchewan) shall have
                  no application to: (i) this Debenture; (ii) any indenture,
                  instrument or agreement entered into by the Company, at any
                  time hereafter, supplemental, collateral or ancillary hereto
                  or in implementation of this Debenture or the Offer of Finance
                  and involving the payment by the Company of money or the
                  liability of the Company to pay money; (iii) any mortgage,
                  charge or other security for the payment of the money made,
                  given or created by this Debenture; (iv) any instrument or
                  agreement entered into by the Company at any time hereafter,
                  renewing or extending or collateral to this Debenture or any
                  other security given to RoyNat by the Company; or (v) the
                  rights, powers or remedies of RoyNat or a Receiver or any
                  other person under this Debenture or under any other security
                  granted by the Company to RoyNat or instrument or agreement
                  collateral, supplemental or ancillary hereto or referred to in
                  this Debenture; and

         (c)      to the extent permitted by law, the Company expressly waives
                  its rights under the ALBERTA INSURANCE ACT and THE FIRE
                  PREVENTION (METROPOLIS) ACT, 1774 (GEO III, Ch. 78).

FOR BRITISH COLUMBIA

19.      RIGHT OF CONSOLIDATION.

         (a)      The right of consolidation shall apply to this Debenture
                  notwithstanding Section 31 of the PROPERTY LAW ACT of British
                  Columbia or any similar statutory provision in force from time
                  to time.

         (b)      For the purposes of Section 203 of the LAND TITLE ACT (British
                  Columbia), the floating charge hereby created over the
                  Borrower's real and immovable property, both freehold and
                  leasehold, shall become a fixed charge thereon upon the
                  earlier of:

                  (i)      the occurrence of an event described in Sections
                           9(e), (f), (g) or (h) of Schedule "A" hereto; or

                  (ii)     RoyNat taking any action pursuant to Section 10 of
                           Schedule "A" hereto to enforce and realize on the
                           security hereby constituted.

         IN WITNESS WHEREOF the Company has executed this Debenture.

                                             REGAL GREETINGS & GIFTS CORPORATION

                                             By:
                                                --------------------------------
                                                Name:  Anthony R. Calandra
                                                Title: Vice-President

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                                  SCHEDULE "A"
                                  ------------

1.       THE COMPANY HEREBY DECLARES, COVENANTS AND AGREES THAT IT:

         (a)      AS TO TITLE - is the sole legal and beneficial owner of the
                  Mortgaged Premises and owns the same free of all encumbrances
                  other than Permitted Encumbrances;

         (b)      FURTHER ASSURANCES - shall at its expense on the request of
                  RoyNat, execute and deliver to RoyNat such further assurances
                  and documents as RoyNat may require to perfect RoyNat's
                  security on all or any part of the Mortgaged Premises, or to
                  specifically charge any or all of the property then subject to
                  the floating charge created hereby;

         (c)      PAY COSTS - shall pay all costs and expenses (including legal
                  fees and disbursements on a solicitor and own client basis) of
                  RoyNat incidental to or which in any way relates to this
                  Debenture or its enforcement including (i) the preparation,
                  execution and filing of this Debenture and any instruments
                  postponing, discharging, amending, extending or supplemental
                  to this Debenture or any security required by any Offer of
                  Finance ("RoyNat's Security"); (ii) perfecting and keeping
                  perfected RoyNat's Security; (iii) maintaining the intended
                  priority of RoyNat's Security on all or any part of the
                  Mortgaged Premises; (iv) taking, recovering or possessing the
                  Mortgaged Premises; (v) taking any actions or other
                  proceedings to enforce the remedies provided herein or
                  otherwise in relation to this Debenture or the Mortgaged
                  Premises, or by reason of a default hereunder or the
                  non-payment of the moneys hereby secured; (vi) taking
                  proceedings, giving notices and giving responses required
                  under any applicable law concerning or relating to RoyNat's
                  Security, including compliance with the provisions of
                  applicable bankruptcy, insolvency, personal property security
                  and mortgage enforcement legislation; (vii) any inspections
                  required to be made to the Mortgaged Premises, or the review
                  of any plans, specifications or other documentation which may
                  require the approval or consent of RoyNat; (viii) responding
                  to or participating in proceedings in the nature of those
                  described in Sections 9(e), (f) and (g) hereof; and (ix)
                  obtaining the advice of counsel and other advisors in relation
                  to the foregoing;

                  all such costs and expenses and other monies payable
                  hereunder, together with interest at the Loan Rate, shall be
                  payable on demand and shall upon being incurred by RoyNat be
                  secured hereby and constitute a charge on the Mortgaged
                  Premises and any proceeds of realization;

         (d)      TO PAY RENTS AND TAXES - shall pay all rents, taxes and
                  assessments lawfully imposed upon the Mortgaged Premises or
                  any part thereof and upon the income and profits of the
                  Company when the same become due and payable, shall show to
                  RoyNat on request receipts for such payment;

         (e)      TO MAINTAIN CORPORATE EXISTENCE AND SECURITY - shall maintain
                  its corporate existence, shall keep the Mortgaged Premises in
                  good condition and repair, shall maintain the security hereby
                  created as a valid and effective security at all times so long
                  as any moneys are outstanding hereunder, shall carry on and
                  conduct its business in a proper and efficient manner and in
                  accordance with all applicable law, shall not materially alter
                  the kind of business carried on by it, shall advise RoyNat
                  promptly in writing of any proposed change in its name, shall
                  observe and perform all of its obligations under leases,
                  licences and other agreements to which it is a party so as to
                  preserve and protect the Mortgaged Premises and the income
                  therefrom, and shall keep proper books of accounts with
                  correct entries of all transactions in relation to its
                  business. The Company acknowledges, covenants and agrees that
                  if it amalgamates with any other company or companies, then
                  (i) the Mortgaged Premises and the security interests created
                  by this Debenture will extend to and include all the property
                  and assets of the amalgamated Company and to any property or
                  assets of the amalgamated Company thereafter owned or
                  acquired, (ii) the term "Company", where used in this
                  Debenture, will extend to and include the amalgamated Company;

         (f)      NOT TO SELL - shall not, except as otherwise permitted
                  hereunder, remove, destroy, lease, sell or otherwise dispose
                  of any of the Mortgaged Premises; provided that the Company
                  may sell or otherwise dispose of furniture, machinery,
                  equipment, vehicles and accessories which have become worn out
                  or damaged or otherwise unsuitable for their purposes on
                  condition that it shall substitute therefor, subject to the
                  lien hereof and free from prior liens or charges, property of
                  equal value so that the security hereby constituted shall not
                  thereby be in any way reduced or impaired;

         (g)      NO OTHER LIENS - shall not create, assume or suffer to exist
                  any charge, lien, security interest or encumbrance upon any
                  Mortgaged Premises ranking or purporting to rank in priority
                  to or pari passu with the security interest created hereunder,
                  other than Permitted Encumbrances; provided that no provision
                  hereof shall be construed as a subordination or postponement
                  of the security interest created hereunder to or in favour of
                  any other charge, lien, security interest or encumbrance,
                  whether or not it is a Permitted Encumbrance;

         (h)      TO HOLD PROCEEDS OF UNAUTHORIZED SALE IN TRUST - in the event
                  the Mortgaged Premises or any part thereof are sold or
                  disposed of prior to the full discharge of this Debenture by
                  RoyNat, in any manner not authorized by this Debenture, shall
                  hold all proceeds of such sale or disposition received by the
                  Company as trustee for RoyNat until the Company has been fully
                  released from this Debenture by RoyNat;

         (i)      TO INSURE - shall keep insured the Mortgaged Premises with
                  reputable insurers approved by RoyNat in such amounts against
                  loss or damage by fire and other causes or perils as RoyNat
                  may reasonably require and shall pay all premiums necessary
                  for such purposes as the same shall become due. All policies
                  of insurance issued in respect of the Mortgaged Premises and
                  all proceeds thereof are hereby assigned to RoyNat as security
                  for the Company's obligations hereunder. Each policy of
                  insurance shall show RoyNat as loss payee, as its interest may
                  appear, shall contain such mortgage clauses as RoyNat may
                  require, shall be in terms satisfactory to RoyNat and, at the
                  request of RoyNat, shall be delivered to and held by RoyNat
                  subject to the rights of holders of Permitted Encumbrances;

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         (j)      TO FURNISH PROOFS - shall forthwith on the happening of any
                  loss or damage furnish at its expense all necessary proofs and
                  do all necessary acts to enable RoyNat to obtain payment of
                  the insurance moneys subject to the rights of holders of
                  Permitted Encumbrances;

         (k)      INSPECTION BY ROYNAT - shall allow any employees or third
                  parties retained by RoyNat at any reasonable time to enter the
                  premises of the Company to inspect the Mortgaged Premises,
                  including without limitation the right to undertake soil,
                  ground water, environmental or other tests, measurements or
                  surveys in, on or below the Mortgaged Premises, and to inspect
                  the books and records of the Company and make extracts
                  therefrom, and shall permit RoyNat prompt access to such other
                  persons as RoyNat may deem necessary or desirable for the
                  purposes of inspecting or verifying any matters relating to
                  any part of the Mortgaged Premises or the books and records of
                  the Company, provided that any information so obtained shall
                  be kept confidential, save as required by RoyNat in exercising
                  its rights hereunder or pursuant to any applicable law or
                  court order. The Company shall pay all costs and expenses of
                  third parties (including legal fees and disbursements on a
                  solicitor and own client basis) retained by RoyNat for
                  purposes of inspection under this Section 1(k);

         (l)      DELIVER FINANCIAL STATEMENTS - shall deliver to RoyNat within
                  90 days of the close of each financial year of the Company one
                  copy of the audited annual financial statements for that year,
                  including the balance sheet and statements of income, retained
                  earnings and changes in financial position accompanied by the
                  report of the Company's auditors, and such other statements or
                  reports as may be required by RoyNat in the Offer of Finance,
                  and within 15 days after each month, one copy of the interim
                  financial statements signed by an authorized officer of the
                  Company, all of which financial statements shall be prepared
                  in accordance with generally accepted accounting principles;
                  and shall at the same time deliver to RoyNat copies of all
                  management reports prepared by the auditors of the Company
                  together with any other statements stipulated in the Offer of
                  Finance;

         (m)      NOT TO CREATE CERTAIN CHARGES - without the prior written
                  consent of RoyNat, shall not create or suffer to exist any
                  charge or encumbrance over all or any portion of the Mortgaged
                  Premises ranking or purporting to rank prior to or pari passu
                  with the charges hereof, other than Permitted Encumbrances,
                  and shall not permit any subsidiary to mortgage, charge or
                  otherwise encumber any of its property or assets or issue any
                  bonds, debentures, shares or other securities, except to the
                  Company;

         (n)      NOT TO REMOVE - prior to the removal of any of the Mortgaged
                  Premises from the province in which it is situated at the date
                  of this Debenture or to leasehold property, the Company shall
                  effect such further registrations and obtain such other
                  consents and give such other security, at the sole cost and
                  expense of the Company, as may be required or desirable to
                  protect or preserve the security hereby created, and the
                  Company shall forthwith notify RoyNat of the intended removal
                  and the action proposed to be taken.

         (o)      NO ACTIONS - has received no notice of and has no knowledge of
                  any pending, potential or threatened litigation or claim for
                  judicial or administrative action which would adversely affect
                  the Mortgaged Premises or their use or market value;

         (p)      COMPLIANCE WITH ENVIRONMENTAL LAWS -

                  (i)      shall conduct and maintain its business, operations
                           and the Mortgaged Premises so as to comply in all
                           respects with all applicable Environmental Laws,
                           including obtaining all necessary licenses, permits,
                           consents and approvals required to own or operate the
                           Mortgaged Premises and the business carried out on,
                           at or from the Mortgaged Premises;

                  (ii)     except as specifically permitted by RoyNat in
                           writing, the Company shall not permit or suffer to
                           exist, Contaminants or dangerous or potentially
                           dangerous conditions in, on or below the Mortgaged
                           Premises including, without limitation, any
                           polychlorinated biphenyls, radio-active substances,
                           underground storage tanks, asbestos or urea
                           formaldehyde foam insulation;

                  (iii)    has no knowledge of the existence of Contaminants or
                           dangerous or potentially dangerous conditions at, on
                           or under the Mortgaged Premises or any properties in
                           the vicinity of the Mortgaged Premises which could
                           affect the Mortgaged Premises or the market value
                           thereof or in levels that exceed the standards in
                           Environmental Laws;

                  (iv)     has no knowledge of the Mortgaged Premises, or any
                           portion thereof, having been used for the disposal of
                           waste;

                  (v)      has not given or received, nor does it have an
                           obligation to give, any notice, claim, communication
                           or information regarding any past, present, planned
                           or threatened treatment, storage, disposal, presence,
                           release or spill of any Contaminant at, on, under or
                           from the Mortgaged Premises or any property in the
                           vicinity of the Mortgaged Premises, including any
                           notice pursuant to any Environmental Laws or any
                           environmental report or audit. The Company shall
                           notify RoyNat promptly and in reasonable detail upon
                           receipt of any such claim, notice, communication or
                           information or if the Company becomes aware of any
                           violation or potential violation of the Company of
                           any Environmental Laws and shall describe therein the
                           action which the Company intends to take with respect
                           to such matter;

                  (vi)     shall at the Company's expense establish and maintain
                           a system to assure and monitor continued compliance
                           with, and to prevent the contravention of,
                           Environmental Laws, which system shall include
                           periodic reviews of such compliance system and the
                           Company shall provide an annual report to RoyNat
                           regarding the Company's environmental performance,
                           and the effectiveness of such system;

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                                      -3-

                  (vii)    shall promptly advise RoyNat in writing of any
                           material adverse change in the environmental or other
                           legal requirements affecting the Company or the
                           Mortgaged Premises upon the Company becoming aware of
                           any such change, and the Company shall provide RoyNat
                           with a copy of any of the orders, by-laws, agreements
                           or other documents pursuant to which any such change
                           is effected or documented;

                  (viii)   shall at the Company's expense promptly take or cause
                           to be taken any and all necessary remedial or
                           clean-up action in response to the presence, storage,
                           use, disposal, transportation, release or discharge
                           of any Contaminant in, on, under or about any of the
                           Mortgaged Premises, or used by the Company, in
                           compliance with all material laws including, without
                           limitation, Environmental Laws, and in accordance
                           with the orders and directions of all applicable
                           federal, state, provincial, municipal and local
                           governmental authorities;

                  (ix)     shall deliver to RoyNat a true and complete copy of
                           all environmental audits, evaluations, assessments,
                           studies or tests relating to the Mortgaged Premises
                           or the Company now in its possession or control or
                           forthwith after the completion thereof, or upon such
                           materials coming into the Company's possession or
                           control;

                  (x)      shall at the Company's expense, if reasonably
                           requested by RoyNat in writing, retain an
                           environmental consultant acceptable to RoyNat, acting
                           reasonably, to undertake environmental tests and to
                           prepare a report or audit with respect to the
                           Mortgaged Premises and deliver same to RoyNat for its
                           review; and

                  (xi)     shall indemnify and save harmless RoyNat, its
                           officers, directors, employees, agents and
                           shareholders from and against all losses,
                           liabilities, damages or costs (including legal fees
                           and disbursements on a solicitor and own client
                           basis) suffered including, without limitation, the
                           cost or expense of any environmental investigation,
                           the preparation of any environmental or similar
                           report, and the costs of any remediation arising from
                           or relating to any breach of the foregoing covenants
                           of this Section 1(p), any breach by the Company or
                           any other person now or hereafter having an interest
                           in the Mortgaged Premises which is asserted or
                           claimed against RoyNat; the presence, in any form, of
                           any Contaminant on or under the Mortgaged Premises,
                           or the discharge, release, spill or disposal of any
                           contaminant by the Company, which is asserted or
                           claimed against any of these indemnified persons.
                           This indemnity shall survive the payment in full of
                           all amounts secured hereunder and the discharge of
                           this Debenture. RoyNat shall hold the benefit of this
                           indemnity in trust for those indemnified persons who
                           are not parties to this Debenture.

2.       WAIVER OF COVENANTS. RoyNat may waive in writing any breach by the
Company of any of the provisions contained in this Debenture or any default by
the Company in the observance or performance of any covenant or condition
required to be observed or performed by the Company hereunder, provided that no
such waiver or any other act, failure to act or omission by RoyNat shall extend
to or be taken in any manner to affect any subsequent breach or default or the
rights of RoyNat resulting therefrom.

3.       PERFORMANCE OF COVENANTS BY ROYNAT. If the Company shall fail to
perform any covenant on its part herein contained, RoyNat may in its absolute
discretion perform any such covenant capable of being performed by it, but
RoyNat shall be under no obligation to do so. If any such covenant requires the
payment of money or if the Mortgaged Premises or any part thereof shall become
subject to any charge ranking in priority to the lien hereof, RoyNat may in its
absolute discretion make such payment and/or pay or discharge such charge, but
shall be under no obligation to do so. All sums so paid by RoyNat, together with
interest at the Loan Rate, shall be payable by the Company on demand and shall
constitute a charge upon the Mortgaged Premises. No such performance or payment
shall relieve the Company from any default hereunder or any consequences of such
default.

4.       APPOINTMENT OF MONITOR. If in the opinion of RoyNat, acting reasonably,
a material adverse change has occurred in the financial condition of the
Company, or if RoyNat in good faith believes that the ability of the Company to
pay any of its obligations to RoyNat or to perform any other covenant contained
herein has become impaired or if an event of default has occurred, RoyNat may by
written notice to the Company, appoint a monitor (the "Monitor") to investigate
any or a particular aspect of the Company or its business and affairs for the
purpose of reporting to RoyNat. The Company shall give the Monitor its full
co-operation, including full access to facilities, assets and records of the
Company and to its creditors, customers, contractors, officers, directors,
employees, auditors, legal counsel and agents. The Monitor shall have no
responsibility for the affairs of the Company nor shall it participate in the
management of the Company's affairs and shall incur no liability in respect
thereof or otherwise in connection with the Company, its business and affairs or
the Mortgaged Premises. The Monitor shall act solely on behalf of RoyNat and
shall have no contractual relationship with the Company as a consultant or
otherwise. The appointment of a Monitor shall not be regarded as an act of
enforcement of this Debenture. All reasonable fees and expenses of the Monitor
(including legal fees and disbursements on a solicitor and own client basis)
shall be paid by the Company upon submission to it of a written invoice
therefor. RoyNat may at its option upon the occurrence of an event of default
appoint or seek to have appointed the Monitor as Receiver, receiver and manager,
liquidator, or trustee in bankruptcy of the Company or the Mortgaged Premises or
any part thereof.

5.       APPLICATION OF INSURANCE PROCEEDS. Any insurance moneys received by
RoyNat pursuant to Sections 1(i) and/or 1(j) above may at the option of RoyNat
be applied to rebuilding or repairing the Mortgaged Premises, or be paid to the
Company, or any such moneys or any insurance moneys received by RoyNat upon the
death of any person whose life is insured under any policy of insurance assigned
to RoyNat as security for the obligations of the Company hereunder may be
applied in the sole discretion of RoyNat, in whole or in part, to the repayment
of the principal amount hereby secured or any part thereof whether then due or
not, with any partial payments to be credited against principal instalments
payable hereunder in inverse order of their maturity dates.

6.       NO MERGER OR NOVATION. The taking of any judgment or the exercise of
any power of seizure or sale shall not operate to extinguish the liability of
the Company to perform its obligations hereunder or to pay the moneys hereby
secured, shall not operate as a merger of any covenant herein contained or
affect the right of RoyNat to interest at the Loan Rate in effect from time to
time hereunder, and the acceptance of any payment or other security shall not
constitute or create any novation. The execution and delivery of this Debenture
or of any instruments or documents supplemental hereto shall not operate as a
merger of any representation,

<Page>
                                      -4-

warranty, term, condition or other provision contained in any other obligation
or indebtedness of the Company to RoyNat or under any Offer of Finance.

7.       SECURITY IN ADDITION. The security hereby constituted is in addition to
any other security now or hereafter held by RoyNat. The taking of any action or
proceedings or refraining from so doing, or any other dealings with any other
security for the moneys secured hereby, shall not release or affect the charges
created hereby.

8.       PARTIAL DISCHARGES. RoyNat may in its sole discretion grant partial
discharges or releases of security in respect of any of the Mortgaged Premises
on such terms and conditions as it shall deem fit and no such partial discharges
or releases shall affect the remainder of the security constituted hereby nor
shall it alter the obligations of the Company hereunder.

9.      EVENTS OF DEFAULT. The whole of the principal balance remaining unpaid
together with interest and all other moneys secured by this Debenture shall, at
the option of RoyNat, become immediately due and payable and the security hereby
created shall become enforceable in each of the following events (each event
being herein called an "event of default"):

         (a)      if the Company defaults in payment of the principal of or
                  interest on this Debenture or on any other indebtedness of the
                  Company to RoyNat when the same becomes due;

         (b)      if the Company defaults in the performance or observance of
                  any of the covenants contained in Section 9(b) of the
                  Debenture or in Sections 1(f), (g), (k), (m) or (n) of this
                  Schedule or Section 4 of this Schedule;

         (c)      if the Company defaults in the performance or observance of
                  any other covenant or condition herein contained and such
                  default shall continue for 10 days after written notice
                  thereof to the Company by RoyNat;

         (d)      if there is any material misrepresentation or misstatement
                  contained in any certificate or document delivered by an
                  officer or director of the Company in connection with this
                  Debenture or in connection with any other agreement, document,
                  certificate or instrument of any kind whatsoever delivered at
                  any time by the Company to RoyNat;

         (e)      if the Company institutes any proceeding or takes any
                  corporate action or executes any agreement or notice of
                  intention to authorize its participation in or commencement of
                  any proceeding (i) seeking to adjudicate it a bankrupt or
                  insolvent, or (ii) seeking liquidation, dissolution, winding
                  up, restructuring, reorganization, arrangement, protection,
                  relief or composition of it or any of its property or debt or
                  making a proposal with respect to it under any law relating to
                  bankruptcy, insolvency, reorganization or compromise of debts
                  or other similar laws (including, without limitation, any
                  application under the COMPANIES' CREDITORS ARRANGEMENT ACT or
                  any reorganization, arrangement or compromise of debt under
                  the laws of its jurisdiction of incorporation or
                  organization);

         (f)      the Company becomes bankrupt or insolvent or commits an act of
                  bankruptcy, or any proceeding is commenced against or
                  affecting the Company:

                  (i)      seeking to adjudicate it a bankrupt or insolvent;

                  (ii)     seeking liquidation, dissolution, winding up,
                           restructuring, reorganization, arrangement,
                           protection, relief or composition of it or any of its
                           property or debt or making a proposal with respect to
                           it under any law relating to bankruptcy, insolvency,
                           reorganization or compromise of debts or other
                           similar laws (including, without limitation, any
                           reorganization, arrangement or compromise of debt
                           under the laws of its jurisdiction of incorporation
                           or organization); or

                  (iii)    seeking appointment of a receiver, receiver and
                           manager, liquidator, trustee, agent, custodian or
                           other similar official for it or for any part of its
                           properties and assets, including the Mortgaged
                           Premises or any part thereof;

         (g)      any order or judgment is issued by a court granting any of the
                  relief referred to in Section 9(f) hereof;

         (h)      if an encumbrancer or secured creditor shall appoint a
                  receiver or agent or other similar official over any part of
                  the Mortgaged Premises, or take possession of any part of the
                  Mortgaged Premises or if any execution, distress or other
                  process of any court becomes enforceable against any of the
                  property of the Company, or a distress or like process is
                  levied upon any of such property;

         (i)      if the Company takes any corporate proceedings for its
                  dissolution, liquidation or amalgamation with another company
                  or if the corporate existence of the Company shall be
                  terminated by expiration, forfeiture or otherwise;

         (j)      if a default occurs under any agreement supplemental hereto or
                  under any other security previously, now or hereafter granted
                  to RoyNat by the Company or any guarantor of the obligations
                  of the Company or should any party to any agreement
                  supplemental or collateral hereto fail to carry out or observe
                  any covenant or condition on its part to be observed or
                  performed and such default continues for 10 days after written
                  notice thereof to the Company by RoyNat;

         (k)      if RoyNat, in good faith and upon commercially reasonable
                  grounds, believes that the prospect of payment or performance
                  of any of the obligations is or is about to be impaired or
                  that the Mortgaged Premises or any part thereof is or is about
                  to be placed in jeopardy;

         (l)      if Voting Control of the Company shall change without the
                  prior written consent of RoyNat; or

         (m)      if a default, breach, material misrepresentation or material
                  misstatement occurs or is made, or is permitted to occur or to
                  be made, under any agreement, promissory note, debt
                  obligation, guarantee or otherwise now or hereafter granted by
                  or entered into by the Company to or with RoyNat, any other
                  bank, financial institution or other lender.

<Page>
                                      -5-

10.      ENFORCEMENT. Upon the happening of any event of default, RoyNat may
exercise any rights, powers or remedies available to RoyNat at law or in equity
or under applicable legislation and, in addition, shall have the following
rights, powers and remedies:

         (a)      to enter upon and take possession of all or any part of the
                  Mortgaged Premises;

         (b)      to hold, use, repair, preserve and maintain all or any part of
                  the Mortgaged Premises and make such replacements thereof and
                  additions thereto as RoyNat shall deem advisable;

         (c)      to exercise all powers necessary to the performance of all
                  functions provided for herein including without limitation the
                  powers to purchase on credit, to borrow money in the Company's
                  name or in its own name and to advance its own money to the
                  Company at such rates of interest as it may deem reasonable;

         (d)      to sell, for cash or credit or part cash and part credit,
                  lease or dispose of or otherwise realize upon all or any part
                  of the Mortgaged Premises whether by public auction or by
                  private sale for New Brunswick, (whether pursuant to the Power
                  of Sale contained in the PROPERTY ACT, 1973 R.S.N.B., c-P-19,
                  or otherwise) or lease in such manner as RoyNat in its
                  absolute discretion may determine, provided that it shall not
                  be incumbent on RoyNat to sell, lease or dispose of the said
                  property but that it shall be lawful for RoyNat peaceably to
                  use and possess the same without hindrance or interruption by
                  the Company, or any other person or persons whomsoever, and to
                  receive income from such property and to convey, transfer and
                  assign to a purchaser or purchasers the title to any
                  undertaking, property and assets so sold and provided further
                  that in the case of a sale on credit RoyNat shall only be
                  liable to account to the Company, any subsequent encumbrancers
                  and others for moneys actually received by RoyNat;

         (e)      to appoint by instrument in writing any person or persons to
                  be a Receiver of all or any portion of the undertaking,
                  property and assets hereby charged, to fix the Receiver's
                  remuneration and to remove any Receiver so appointed and
                  appoint another or others in his stead; and

         (f)      to apply to any court of competent jurisdiction for the
                  appointment of a Receiver of all or any portion of the
                  undertaking, property and assets hereby charged.

11.      POWERS OF RECEIVER.

         (a)      Any Receiver shall have all of the powers of RoyNat set out in
                  Section 10 of this Schedule and, in addition, shall have the
                  following powers:

                  (i)      to carry on the business of the Company and to enter
                           into any compromise or arrangement on behalf of the
                           Company; and

                  (ii)     with the prior written consent of RoyNat to borrow
                           money in his name or in the Company's name, for the
                           purpose of carrying on the business of the Company
                           and for the preservation and realization of the
                           undertaking, property and assets of the Company
                           including, without limitation, the right to pay
                           persons having prior charges or encumbrances on
                           properties on which the Company may hold charges or
                           encumbrances, with any amount so borrowed and any
                           interest thereon to be a charge upon the Mortgaged
                           Premises in priority to this Debenture;

         (b)      Any Receiver appointed pursuant to the provisions hereof shall
                  be deemed to be an agent of the Company for the purposes of:

                  (i)      carrying on and managing the business and affairs of
                           the Company, and

                  (ii)     establishing liability for all of the acts or
                           omissions of the Receiver while acting in any
                           capacity hereunder and RoyNat shall not be liable for
                           such acts or omissions,

provided that, without restricting the generality of the foregoing, the Company
irrevocably authorizes RoyNat to give instructions to the Receiver relating to
the performance of its duties as set out herein.

12.      APPLICATION OF MONEYS. All moneys actually received by RoyNat or by the
Receiver pursuant to Sections 10 and 11 of this Schedule shall be applied:

         (a)      first, in payment of claims, if any, of secured creditors of
                  the Company, including any claim of the Receiver pursuant to
                  Section 11(a), ranking in priority to the charges created by
                  this Debenture as directed by RoyNat or the Receiver;

         (b)      second, in payment of all costs, charges and expenses of and
                  incidental to the appointment of the Receiver (including legal
                  fees and disbursements on a solicitor and its own client
                  basis) and the exercise by the Receiver or RoyNat of all or
                  any of the powers granted to them under this Debenture,
                  including the reasonable remuneration of the Receiver or any
                  agent or employee of the Receiver or any agent of RoyNat and
                  all outgoings properly paid by the Receiver or RoyNat in
                  exercising their powers as aforesaid;

         (c)      third, in or towards the payment to RoyNat of all moneys due
                  to it by the Company in such order as RoyNat in its sole
                  discretion may determine;

         (d)      fourth, in or towards the payment of the obligation of the
                  Company to persons, if any, with charges or security interests
                  against the Mortgaged Premises ranking subsequent to those in
                  favour of RoyNat; and

         (e)      fifth, subject to applicable law, any surplus shall be paid to
                  the Company.

13.      RESTRICTION ON COMPANY AND ITS OFFICERS AND DIRECTORS. Upon the Company
receiving notice from RoyNat of the taking of possession of the Mortgaged
Premises or the appointment of a Receiver, all the powers, functions, rights and
privileges of each of

<Page>
                                      -6-

the directors and officers of the Company with respect to the properties,
business and undertaking of the Company shall cease unless specifically
continued by the written consent of RoyNat.

14.      DISCHARGE AND SATISFACTION. Upon payment by the Company to RoyNat of
all moneys hereby secured, these presents shall cease and become null and void
and the Mortgaged Premises shall revest in the Company without any
acknowledgement or formality, but RoyNat shall upon the request and at the
expense of the Company, execute and deliver to the Company a full release and
discharge.

15.      NO OBLIGATION TO ADVANCE. Neither the issue and delivery of this
Debenture nor the advance of any funds hereunder shall obligate RoyNat to
advance any further funds hereunder or otherwise make credit available to the
Company, nor will RoyNat have any liability for any failure or delay on its part
to exercise any rights hereunder.

16.      LIMITED POWER OF ATTORNEY. The Company hereby appoints RoyNat as the
Company's attorney, with full power of substitution, in the name and on behalf
of the Company, to execute, deliver and do all such acts, deeds, leases,
documents, transfers, demands, conveyances, assignments, contracts, assurances,
consents, financing statements and things as the Company has agreed to execute,
deliver and do hereunder, under any Offer of Finance or otherwise, or as may be
required by RoyNat or any Receiver to give effect to this Debenture or in the
exercise of any rights, powers or remedies hereby conferred on RoyNat or any
Receiver, and generally to use the name of the Company in the exercise of all or
any of the rights, powers or remedies hereby conferred on RoyNat or any
Receiver. This appointment, being coupled with an interest, shall not be revoked
by the insolvency, bankruptcy, dissolution, liquidation or other termination of
the existence of the Company or for any other reason.

17.      INTERPRETATION. As used herein the following expressions shall have the
following meanings:

         (a)      "Business Day" means any day except Saturday, Sunday or a
                  statutory holiday.

         (b)      "Capital Lease Obligations" means the obligations of the
                  Company to pay rent or other amounts under a lease of (or
                  other agreement conveying the right to use) real or personal
                  property, which obligations are to be paid over a term
                  (including the initial term and the term of all renewal
                  options) which could (if all such renewal options were to be
                  exercised) exceed 36 months, or which obligations are required
                  to be classified and accounted for as a capital lease on a
                  balance sheet of the Company under generally accepted
                  accounting principles;

         (c)      "Contaminant" means any solid, liquid, gas, odour, heat,
                  sound, smoke, waste, vibration, radiation or combination of
                  any of them resulting directly or indirectly from human
                  activities that may cause: (i) impairment of the quality of
                  the natural environment for any use that can be made of it,
                  (ii) injury or damage to property or to plant or animal life,
                  (iii) harm or material discomfort to any person, (iv) an
                  adverse affect on the health of any person, (v) impairment of
                  the safety of any person, (vi) rendering any property or plant
                  or animal life unfit for use by man, (vii) loss of enjoyment
                  of normal use of property, or (viii) interference with the
                  normal conduct of business, and includes any pollutant or
                  contaminant as defined in any applicable Environmental Laws
                  and any biological, chemical or physical agent which is
                  regulated, prohibited, restricted or controlled.

         (d)      "Contingent Liabilities" of the Company at any time means the
                  amount of all indebtedness and liabilities, contingent or
                  otherwise, of any other person at such time,

                           (i) guaranteed, directly or indirectly, in any manner
                           by the Company including, without limitation, (A) by
                           procuring the issue of letters of credit or other
                           similar instruments for the benefit of that other
                           person, (B) by endorsement of bills of exchange
                           (otherwise than for collection or deposit in the
                           ordinary course of business), or (C) by the other
                           person assigning debts of the Company (whether or not
                           represented by an instrument) with recourse to the
                           Company;

                           (ii) in effect guaranteed, directly or indirectly, by
                           the Company through an agreement, contingent or
                           otherwise:

                                    (A) to purchase such indebtedness or
                                    liabilities or to advance or supply funds
                                    for the payment or purchase of such
                                    indebtedness or liabilities;

                                    (B) to purchase, sell or lease (as lessee or
                                    lessor) property, products, materials or
                                    supplies or to purchase or sell services in
                                    circumstances where it can reasonably be
                                    assumed that the purpose of such agreement
                                    was to provide funds to the debtor to enable
                                    the debtor to make payment of such
                                    indebtedness or liabilities or to provide
                                    goods or services to the debtor to enable it
                                    to satisfy other liabilities, regardless of
                                    the delivery or non-delivery of the
                                    property, products, materials or supplies or
                                    the provision or non-provision of the
                                    services, including take or pay or
                                    throughput agreements; or

                                    (C) to make any loan, advance, capital
                                    contribution to or other investment in the
                                    other Person for the purpose of assuring a
                                    minimum equity, asset base, working capital
                                    or other balance sheet condition at any date
                                    or to provide funds for the payment of any
                                    liability, dividend or return of capital; or

                           (iii) secured by any lien upon property owned by the
                           Company, even though the Company has not assumed or
                           become liable for the payment of such indebtedness or
                           liabilities.

         (e)      "Environmental Laws" means the common law and all applicable
                  federal, provincial, local, municipal, governmental or
                  quasi-governmental laws, rules, regulations, licences, orders,
                  permits, decisions or requirements concerning Contaminants,
                  occupational or public health and safety or the environment
                  and any other order, injunction, judgment, declaration, notice
                  or demand issued thereunder;
<Page>
                                      -7-

         (f)      "Funded Indebtedness" means, with respect to the Company at
                  any particular time, the following:

                           (i) indebtedness for money borrowed and indebtedness
                           represented by notes payable and drafts accepted
                           representing extensions of credit (including, as
                           regards any note or draft issued at a discount, the
                           face amount of such note or draft);

                           (ii) all obligations (whether or not with respect to
                           the borrowing of money) which are evidenced by bonds,
                           debentures, notes or other similar instruments or not
                           so evidenced but which would be considered to be
                           indebtedness for borrowed money in accordance with
                           generally accepted accounting principles;

                           (iii) all indebtedness upon which interest charges
                           are customarily paid;

                           (iv) Capital Lease Obligations and all other
                           indebtedness issued or assumed as full or partial
                           payment for property or services or by way of capital
                           contribution;

                           (v) any Contingent Liability relating to an
                           obligation of a type referred to in (a) to (d) above;
                           and

                           (vi) any of the foregoing amounts in respect of any
                           subsidiary of the Company;

                  other than indebtedness owing to (i) RoyNat under the
                  Debenture or under any security agreements and instruments
                  granted by the Company to RoyNat as security for same, (ii)
                  Bank of Nova Scotia in connection with the operating facility
                  granted to the Company pursuant to a Commitment Letter dated
                  December, 2001 and (iii) MDC Corporation Inc. under a
                  promissory note dated December 14, 2001; for greater
                  certainty, trade payables, expenses accrued in the ordinary
                  course of business, customer advance payments and deposits
                  received in the ordinary course of business do not constitute
                  Funded Indebtedness;

         (g)      "Inventory" means property of the Company held for sale
                  including products purchased for resale, finished goods, work
                  in process and raw materials but not including any property
                  not intended to be directly incorporated in finished goods or
                  products to be sold."

         (h)      "Loan Rate" means the rate of interest specified in Section 3
                  of the Debenture.

         (i)      "Permitted Encumbrances" means any of the following:

                  (i)      liens for taxes, assessments, governmental charges or
                           levies not at the time due;

                  (ii)     easements, rights of way or other similar rights in
                           land existing at the date of this Debenture which in
                           the aggregate do not materially impair the usefulness
                           in the business of the Company of the property
                           subject thereto;

                  (iii)    rights reserved to or vested in any municipality or
                           governmental or other public authority by the terms
                           of any lease, licence, franchise, grant or permit, or
                           by any statutory provision, to terminate the same or
                           to require annual or other periodic payments as a
                           condition to the continuance thereof;

                  (iv)     any lien or encumbrance the validity of which is
                           being contested by the Company in good faith and in
                           respect of which either there shall have been
                           deposited with RoyNat cash in an amount sufficient to
                           satisfy the same or RoyNat shall be otherwise
                           satisfied that its interests are not prejudiced
                           thereby;

                  (v)      any reservations, limitations, provisos and
                           conditions expressed in any original grant from the
                           Crown;

                  (vi)     title defects or irregularities which, in the opinion
                           of counsel to RoyNat, are of a minor nature and in
                           the aggregate shall not materially impair the
                           usefulness in the business of the Company of the
                           property subject thereto; and

                  (vii)    validly perfected security given by the Company to
                           any senior operating lender of the Company to which
                           this Debenture has been subordinated on any assets of
                           the Company.

         (j)      "Receiver" shall include one or more of a receiver,
                  receiver-manager or receiver and manager of all or a portion
                  of the undertaking, property and assets of the Company
                  appointed by RoyNat pursuant to this Debenture or by a court
                  of competent jurisdiction.

         (k)      "RoyNat" means RoyNat Inc., its successors and assigns and,
                  where applicable, includes those for whom it acts as nominee
                  or agent.

         (l)      "Voting Control" means the ownership of a sufficient number of
                  outstanding shares of a corporation to elect a majority of its
                  directors; and "Voting Control of the Company" means the
                  Voting Control of the Company stated in the Offer of Finance
                  or such different Voting Control as shall have been effected
                  with the prior written consent of RoyNat.

         (m)      "Working Capital" of a company means the ratio of its current
                  assets to its current liabilities calculated in accordance
                  with generally accepted accounting principles with any dissent
                  as to the calculation thereof being conclusively resolved by
                  RoyNat; and "Consolidated Working Capital" means the Working
                  Capital of the Company and all its subsidiaries calculated on
                  a consolidated basis.<Page>

                                                                   Exhibit 10.30

THE SALE, TRANSFER, ASSIGNMENT, PLEDGE OR ENCUMBRANCE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE OR INSTRUMENT IS SUBJECT TO THE TERMS AND
CONDITIONS OF A SHAREHOLDERS' AGREEMENT DATED AS OF THE DATE HEREOF, AMONG REGAL
ACQUISITION CORP. AND CERTAIN OTHER SIGNATORIES THERETO.

                                    WARRANTS

                                   To Acquire
                                  Common Shares

                       REGAL GREETINGS & GIFTS CORPORATION

CLASS A WARRANTS
Certficate No. A-1                                       No. of Warrants: 11,000

         THIS CERTIFIES that, for the sum of $1.00 now paid by RoyNat and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, RoyNat is the registered holder of the number of warrants
specified above (subject to adjustment as hereinafter provided) (the "WARRANTS")
of Regal Greetings & Gifts Corporation, each of which entitles the Holder, upon
payment of the Exercise Price to acquire one (1) Common Share in the capital of
the Corporation (subject to adjustment as hereinafter provided), on and subject
to the terms and conditions set forth below.

1.       DEFINITIONS. In this Warrant Certificate, capitalized terms and phrases
shall, if not defined herein, have the meaning ascribed to them in the
Shareholders Agreement and, unless there is something in the subject matter or
context inconsistent herewith, the following terms shall have the following
meanings, respectively:

         "COMMON SHARES" means common shares in the capital of the Corporation,
         as such shares are constituted on the date hereof and, in the event
         there shall occur a change/event in respect of or affecting the Common
         Shares referred to in Article 6 (whether or not such change/event shall
         result in an adjustment in the Exercise Price) (including a
         redesignation, reclassification, subdivision, redivision, reduction,
         combination or consolidation), the term "Common Shares" shall mean the
         shares, other securities or other property resulting from such
         change/event to which the holder hereof is entitled upon conversion;

         "CORPORATION" means Regal Greetings & Gifts Corporation, a corporation
         incorporated under the laws of Canada, and its successors and permitted
         assigns;

         "EXERCISE PRICE" means the sum of One Hundredth of a Dollar ($0.01) in
         Canadian funds, subject to adjustment as provided herein;

<Page>

         "FULLY DILUTED" means the number of Common Shares outstanding at any
         time including any stock dividends which have been declared but not
         issued and assuming all securities which are convertible or
         exchangeable directly or indirectly into such Common Shares are
         converted or exchanged into Common Shares and all options, warrants or
         rights to acquire directly or indirectly such Common Shares shall be
         treated as if exercised;

         "HOLDER" means RoyNat or such other Person who at any time and from
         time to time is the registered holder of Warrants;

         "PERSON" is to be broadly interpreted and shall include an individual,
         a company, a partnership, a trust, an unincorporated organization, a
         joint venture, the government of a country or any political subdivision
         thereof, or an agency or department of any such government, and the
         executors, administrators or other legal representatives of an
         individual in such capacity.

         "ROYNAT" means RoyNat Capital Inc., a corporation incorporated under
         the laws of Canada;

         "ROYNAT DEBENTURE" means the debenture of even date issued by the
         Corporation to RoyNat in the principal amount of $7,000,000.

         "SHAREHOLDERS AGREEMENT" means the unanimous shareholders agreement
         dated as of the date hereof between the Corporation, RoyNat, RGG
         Acquisition, Inc., MDC Corporation Inc. and McGuggan LLP;

         "SUBSCRIPTION FORM" means the form of subscription annexed hereto as
         Schedule A;

         "WARRANTS" has the meaning given on the first page hereof;

         "WARRANT CERTIFICATE" means this warrant certificate and any deed or
         instrument supplemental or ancillary hereto and any schedules hereto or
         thereto and not to any particular article, section, subsection, clause,
         subclause or other portion hereof.

2.       CONDITIONS. Each Warrant entitles the Holder to purchase, at any time
and from time one (1) Common Share at a price per Common Share equal to the
Exercise Price, all subject to the adjustments hereinafter provided.

3.       EXERCISE OF WARRANTS Should the Holder desire to exercise any Warrants
to purchase Common Shares, the Holder shall be required to deliver to the
Corporation a completed Subscription Form, substantially in the form attached
hereto as Schedule A, duly executed by the Holder, and payment to the
Corporation for the account of the Corporation, by cash or by certified or bank
cashier's cheque, of the purchase price for the number of Common Shares being
purchased (computed to the nearest whole cent, and one-half of a cent being
rounded up). The Common Shares issuable upon the exercise of Warrants shall be
deemed to be issued to the Holder on the basis set out herein on the date on
which a duly executed Subscription Form and related payment is received by the
Corporation at the principal address of the Corporation (or such other office or
agency of the Corporation as it may designate in writing to the Holder at the

<Page>
                                      -3-

address of such Holder appearing on the books of the Corporation), provided such
date is a Business Day and in the event that it is not, then on the next
Business Day (the "EXERCISE DATE") and the Holder shall be entered on the books
of the Corporation as at the Exercise Date as the Holder of such number of
Common Shares. The Corporation shall, as soon as practicable, and in any event
within five (5) Business Days following the Exercise Date, deliver to the Holder
or to such Person as it may designate in the Subscription Form, a certificate
for the Common Shares which the Holder, or such Person as it may designate in
the Subscription Form, is entitled to receive, in accordance with the provisions
of this Warrant. In the event that at any time the Holder exercises Warrants to
purchase all of the Common Shares which it is entitled to purchase upon exercise
of all of the Warrants evidenced by this Warrant Certificate, following receipt
by the Holder, or such Person as it designated, of all such Common Shares which
the Holder, or such Person as it designated, is entitled to receive pursuant
hereto, the Warrants shall be deemed to be surrendered. In the event that at any
time the Holder exercises Warrants to purchase some, but not all, of the Common
Shares which it is entitled to purchase hereunder, a replacement Warrant
Certificate with terms identical to this Warrant Certificate (save for the
number of Warrants and Common Shares which may be subscribed for and purchased),
reflecting the remaining number of Warrants and Common Shares which the Holder
is entitled to purchase shall be issued to the Holder without charge or cost to
the Holder and this Warrant Certificate shall thereafter be deemed surrendered.

4.       NOT A SHAREHOLDER Nothing in this certificate or in the holding of
Warrants evidenced hereby shall be construed as conferring upon the Holder any
right or interest whatsoever as a shareholder of the Corporation.

5.       NO FRACTIONAL SHARES Notwithstanding any provisions to the contrary
herein, the Corporation shall not be required to issue any fractional shares in
the capital of the Corporation (unless such fractional shares arise from a
consolidation of shares) in connection with any exercise of Warrants, and in the
event that the calculation of the number of Common Shares issuable upon such
exercise results in a number which includes a fraction of whole shares, then the
Corporation shall in lieu of issuing any fractional shares in the capital of the
Corporation, pay to the Holder, or to such Person as it may designate in the
relevant Subscription Form, an amount of lawful money of Canada equal (computed
to the nearest whole cent, and one-half of a cent being rounded up) to the
appropriate fraction of the Exercise Price within five (5) Business Days
following the Exercise Date.

6.       ADJUSTMENTS AND RULES

6.1      ADJUSTMENT TO EXERCISE PRICE The rights of the Holder, including the
number of Common Shares to which it is entitled upon the exercise of the
Warrants and the Exercise Price therefor, will be adjusted as provided in, and
in accordance with the provisions of, this Warrant Certificate.
<Page>
                                      -4-

6.1.1    COMMON SHARE REORGANIZATION If at any time while Warrants remains
outstanding, the Corporation:

         (1)      issues Common Shares or securities exchangeable for or
                  convertible into Common Shares to all or substantially all the
                  holders of the Common Shares as a stock dividend;

         (2)      makes a distribution on its outstanding Common Shares payable
                  in Common Shares or securities exchangeable for or convertible
                  into Common Shares;

         (3)      subdivides, redivides or changes its outstanding Common Shares
                  into a greater number of shares; or

         (4)      consolidates, reduces, combines or changes its outstanding
                  Common Shares into a smaller number of shares,

(any of such events being called a "COMMON SHARE REORGANIZATION"), the Holder,
upon exercising any Warrant on or after the record date or effective date of
such Common Share Reorganization (whichever is earlier), will be entitled to
receive in lieu of the number of Common Shares to which the Holder was
theretofore entitled upon such exercise, the number of Common Shares which the
Holder would have been entitled to receive as a result of such Common Share
Reorganization if, on the record date or effective date thereof (as the case may
be), the Holder had been the registered holder of the number of Common Shares to
which the Holder was theretofore entitled upon exercise of such Warrant, without
the Holder making any additional payment or giving any other consideration
therefor.

6.1.2    SPECIAL DISTRIBUTION If at any time while Warrants remain outstanding,
the Corporation fixes a record date for or effects the issue or the distribution
to all or substantially all of the holders of Common Shares of:

         (1)      shares of the Corporation of any class other than Common
                  Shares;

         (2)      rights, options or warrants to acquire shares or securities
                  exchangeable for or convertible into shares or property or
                  other assets of the Corporation;

         (3)      evidence of indebtedness; or

         (4)      any property or other assets,

<Page>
                                      -5-

and if such issuance or distribution does not constitute a Common Share
Reorganization or a Top-up Offering (any of such non-excluded events being
called a "SPECIAL DISTRIBUTION"), the Holder, upon exercising any Warrant on or
after the record date or effective date of such Special Distribution (whichever
is earlier), will be entitled to receive, in addition to the number of Common
Shares to which the Holder is entitled upon such exercise, the shares, rights,
options, warrants, evidences of indebtedness or property or other assets which
the Holder would have been entitled to receive as a result of such Special
Distribution if, on the record date or effective date therefor (as the case may
be), the Holder had been the registered holder of the number of Common Shares to
which the Holder is entitled upon the exercise of such Warrant, without the
Holder making any additional payment or giving any other consideration therefor.
No Special Distribution shall be carried into effect unless all necessary steps
shall have been taken to so entitle the Holder to the foregoing.

6.1.3    CAPITAL REORGANIZATION If at any time while Warrants remain
outstanding, there is a redesignation or reclassification of the Common Shares
outstanding at any time or change of the Common Shares into other shares or into
other securities (other than a Common Share Reorganization), or a consolidation,
amalgamation or merger of the Corporation with or into any other corporation or
other entity (other than a consolidation, amalgamation or merger which does not
result in any reclassification of the outstanding Common Shares or a change of
the Common Shares into other shares), or a transfer of the undertaking or assets
of the Corporation as an entirety or substantially as an entirety to another
corporation or other entity (any of such events being called a "CAPITAL
REORGANIZATION"), the Holder, upon exercising any Warrant on or after the
effective date of such Capital Reorganization, will be entitled to receive in
lieu of the number of Common Shares to which the Holder was theretofore entitled
upon such exercise, the kind and number of shares, other securities or other
property which the Holder would have been entitled to receive as a result of
such Capital Reorganization if, on the effective date thereof, the Holder had
been the registered holder of the number of Common Shares to which the Holder
was theretofore entitled upon exercise of such Warrant, without the Holder
making any additional payment or giving any other consideration therefor. No
Capital Reorganization shall be carried into effect unless all necessary steps
shall have been taken to so entitle the Holder to the foregoing. If necessary,
appropriate adjustments will be made as a result of any such Capital
Reorganization in the application of the provisions set forth in this Article 6
with respect to the rights and interests thereafter of the Holder to the end
that the provisions set forth in this Article 6 will thereafter correspondingly
be made applicable as nearly as may reasonably be in relation to any shares,
other securities or other property thereafter deliverable upon the exercise of
any Warrant. Any such adjustment must be made by and set forth in an amendment
to this Agreement approved and agreed to, in substance and form, by the Holder
prior to effecting any Capital Reorganization requiring such adjustment.

<Page>
                                      -6-

6.1.4    TOP-UP RIGHT Except in respect of a Common Share Reorganization, if the
Corporation issues Common Shares or rights, options or warrants to acquire
shares or securities exchangeable for or convertible into Common Shares,
including, without limitation, pursuant to any employee share purchase, option
or rights plan of any kind whatsoever (any of such events called being called a
"TOP-UP OFFERING"), then the Holder, upon exercising any Warrant on or after the
occurrence of any particular Top-up Offering , will be entitled to receive
(without the Holder making any additional payment or giving any other
consideration therefor), such number of Common Shares as is equal to the number
of Common Shares to which the Holder would be entitled upon such exercise (but
for the operation of this Section 6.1.4) multiplied by a fraction the numerator
of which shall the number of Common Shares outstanding after giving full effect
to the particular Top-up Offering (calculated on a Fully Diluted basis),
including the number of Common Shares offered pursuant to the Top-up Offering,
or, as the case may be, the number of Common Shares for or into which the
rights, options, warrants or other securities so offered pursuant to the
particular Top-up Offering could be exercised, exchanged or converted, and the
denominator of which shall be the number of Common Shares outstanding
immediately prior to the issuance of securities pursuant to the particular
Top-up Offering (all of which shall be calculated on a Fully Diluted Basis).

         It is hereby acknowledged and agreed that in the event that the
Corporation issues Common Shares to any of its employees pursuant to any
employee share purchase plan established by the Corporation resulting in 20% of
the common shares (determined on an issued and outstanding basis, and not on a
Fully Diluted Basis) of the Corporation being held by such employees, the
Holder, upon exercising all of the warrants issued to the Holder hereunder, will
be entitled to receive (without the Holder making any additional payment or
giving any other consideration therefor), 13,750 Common Shares.

6.2      RULES REGARDING CALCULATION OF ADJUSTMENT

6.2.1    DEEMED AMENDMENT OF AGREEMENT The adjustments provided for in this
Article 6 are cumulative and will be made successively whenever an event
referred to therein occurs, subject to the following Sections of this Section
6.2. After any adjustment pursuant to this Article, the term "Common Shares"
where used in this Agreement shall be interpreted to mean the shares which, as a
result of all previous adjustments pursuant to this Article, the Holder would
have been entitled to receive upon the exercise by the Holder of any Warrant,
and the number of shares indicated in any Subscription Form shall be interpreted
to mean the number of shares which, as a result of all previous adjustments
pursuant to this Article, the Holder would have been entitled to receive upon
the full exercise of this Article 6 entitling the Holder to purchase the number
of shares so indicated. If any question arises with respect to the adjustment
provided for in this Article, such question shall be referred to the auditors of
the Corporation and their determination shall be binding upon the Corporation.

<Page>
                                      -7-

6.2.2    REQUIREMENT FOR THE HOLDER CONSENT NOT AFFECTED The Corporation
acknowledges that, under Section 6.2.6(c) and Article 7 and under various
documentation of even date herewith entered into among the Corporation, the
Holder and other parties, the Corporation is required to obtain the prior
written consent of the Holder before taking certain of the steps referred to in
this Article. The Corporation acknowledges and agrees that the provisions of
this Article do not in any way affect or limit the requirement for such consent
and shall not in any way be deemed to be the consent by the Holder to the taking
of any such step or steps.

6.2.3    MATERIAL EVENTS In case the Corporation after the date of this
Agreement takes any action affecting the Common Shares or holders of Common
Shares, other than an event provided for in Section 6.1, which would materially
affect the rights of the Holder hereunder, the number of Common Shares issuable
upon the exercise of any Warrant and such other rights as may be applicable will
be adjusted in such manner, if any, and at such time, as shall be equitable in
the circumstances. Any such adjustment must be made by and be set forth in an
amendment to this Agreement approved and agreed to, in substance and form, by
the Holder prior to any action being taken which would require such adjustment.

6.2.4    DEEMED RECORD DATE In the absence of a resolution of the directors of
the Corporation fixing a record date for any particular event described in
Section 6.1, the Corporation will be deemed to have fixed as the record date
therefor the date on which such particular event is effected.

6.2.5    NO ADDITIONAL CONSIDERATION The Corporation agree that the purchase
price of Common Shares under any Warrant is nominal and if there occurs any
event which requires or might require adjustment in any of the entitlements of
the Holder pursuant to this Agreement, the Holder may receive any additional
securities, property or other benefits to which it is entitled pursuant hereto
without the Holder making any additional payment or giving any other
consideration therefor.

<Page>
                                      -8-

6.2.6    NOTICE OF ADJUSTMENT OF NUMBER OF COMMON SHARES PURCHASABLE UPON
EXERCISE

         (1)      At least 21 days prior to the effective date or record date,
                  as the case may be, of any event which requires or might
                  require adjustment in any of the rights pursuant to any
                  Warrant, including the number of Common Shares which are
                  issuable upon the exercise of the any Warrant, or such longer
                  period of notice as the Corporation has provided or shall be
                  required to provide holders of Common Shares in respect of any
                  such event, the Corporation shall give notice to the Holder of
                  the particulars of such event and, if determinable, the
                  required adjustment and the computation of such adjustment.

         (2)      In case any adjustment for which a notice in Section 6.2.6(a)
                  has been given is not then determinable, the Corporation shall
                  promptly after such adjustment is determinable give notice to
                  the Holder of the adjustment and the computation of such
                  adjustment.

         (3)      The Corporation shall not undertake or effect any event which
                  requires or might require adjustment in any of the rights
                  pursuant to any Warrant without the prior written consent of
                  the Holder.

6.2.7    FILINGS If the issuance of any Common Shares of the Corporation or
other securities upon the exercise of any Warrant requires any filing with or
registration with or approval of any stock exchange or provincial securities
regulatory authority or any governmental authority in Canada or a province
thereof or compliance with any other requirement under any applicable law before
such shares or securities may be validly issued upon such exercise of the
purchase rights hereunder, the Corporation will take such actions as may be
necessary or desirable to secure such filing, registration, approval or
compliance as the case may be. In the event that the Corporation files a
prospectus or other public offering document following the date hereof, the
Corporation will use its reasonable best efforts to qualify pursuant to such
prospectus or the public offering the distribution of the shares or securities
issuable hereunder.

7.       REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE CORPORATION

7.1      WARRANTIES AND REPRESENTATIONS The Corporation represents and warrants
to the Holder:

         (1)      that it is duly authorized to execute, deliver and perform its
                  obligation under this Warrant Certificate and create and issue
                  the Common Shares issued hereunder and that this Warrant
                  Certificate, when signed and delivered by the Corporation,
                  will be a valid and enforceable obligation of

<Page>
                                      -9-

                  the Corporation enforceable in accordance with the provisions
                  hereof; and

         (2)      that the Common Shares which the Holder is entitled on the
                  full exercise of the Warrants represent 11% of the issued and
                  outstanding Common Shares on a Fully Diluted basis.

7.2      POSITIVE COVENANTS  The Corporation covenants that:

         (1)      it will cause the Common Shares from time to time purchased
                  upon the exercise of any Warrants, and the certificates
                  evidencing such Common Shares, to be duly issued;

         (2)      it shall, for so long as Warrants remain outstanding, have
                  authorized, reserved, allotted and keep available out of its
                  authorized but unissued capital, such number of Common Shares,
                  or such other securities as may be applicable, as shall from
                  time to time be sufficient to effect the exercise of all of
                  the Warrants then outstanding. As a condition precedent to the
                  taking of any action to effect any event described in Section
                  6.1, the Corporation shall take any corporate action which may
                  be necessary or desirable in order that the Corporation shall
                  have unissued and reserved in its authorized capital, and may
                  validly and legally issue as fully paid and non-assessable,
                  the Common Shares or such other securities as may be
                  applicable to which the Holder is entitled to receive on the
                  full exercise of the Warrants; and

         (3)      the shares issued as provided for herein shall be issued as
                  fully paid and non-assessable shares, free from all taxes,
                  liens and charges with respect to the issuance thereof and the
                  Corporation shall take no action which would cause a contrary
                  result.

7.3      NEGATIVE COVENANTS The Corporation shall not, and shall not permit its
subsidiaries to, without the prior written consent of the Holder, take any
action which would require any adjustment provided for in Article 6.

8.       CORPORATION BUY-BACK OPTION In the event that the Corporation purchases
for cancellation some but not all of the Warrants, the Corporation shall issue
and deliver to the Holder a replacement Warrant Certificate with terms identical
to this Warrant Certificate (save for the number of Warrants and Common Shares
which may be subscribed for and purchased), reflecting the remaining number of
Warrants and Common Shares the Holder is entitled to purchase, without cost or
charge to the Holder, and this Warrant Certificate shall thereafter be deemed
surrendered.

<Page>
                                      -10-

9.       EXCHANGE OF WARRANT. This Warrant Certificate is exchangeable, at no
cost to the Holder, upon the surrender hereof by the Holder at the office or
agency of the Corporation referred to in Section 3 hereof, for one or more
Warrant Certificates of like tenor in different denominations, evidencing in the
aggregate the same number of Warrants as the Warrant Certificate being
exchanged.

10.      MUTILATED OR MISSING WARRANTS. Upon receipt of evidence satisfactory to
the Corporation, acting reasonably, of the loss, theft, destruction or
mutilation of this Warrant Certificate and, in the case of any such loss, theft
or destruction, upon delivery of a bond or indemnity satisfactory to the
Corporation, acting reasonably, or, in the case of any such mutilation, upon
surrender or cancellation of this Warrant Certificate, the Corporation (acting
reasonably) will issue to the Holder a new Warrant Certificate of like tenor, in
lieu of this Warrant Certificate, evidencing the same number of Warrants as the
Warrant Certificate being replaced.

11.      REGISTRATION AND TRANSFER OF WARRANT. This Warrant Certificate and the
rights hereunder and the Warrants evidenced by it are transferrable by the
registered holder hereof, without the consent of the Corporation. In the event
that the Holder transfers all of the Warrants, the Holder shall advise the
Corporation of the name, address and facsimile number of the transferee, the
number of Warrants transferred and the date of transfer and the Corporation
shall forthwith thereafter enter the relevant particulars of the transfer in the
appropriate registers of the Corporation and the Corporation shall forthwith
thereafter issue the transferee a replacement Warrant Certificate with terms
identical to this Warrant Certificate (save for the name of the registered
holder), without cost or charge to the Holder or the transferee, and this
Warrant Certificate shall thereafter be deemed surrendered. In the event that
the Holder transfers some but not all of the Warrants, the Holder shall advise
the Corporation of the name, address and facsimile number of the transferee, the
number of Warrants transferred and the date of transfer and the Corporation
shall forthwith thereafter enter the relevant particulars of the transfer in the
appropriate registers of the Corporation and the Corporation shall forthwith
thereafter issue the Holder and transferee a replacement Warrant Certificate
with terms identical to this Warrant Certificate (save for the number of
Warrants and Common Shares which may be subscribed for and purchased and the
name of registered holder, if applicable), reflecting the number of Warrants and
Common Shares the Holder and transferee is entitled to purchase, without cost or
charge to the Holder or the transferee, and this Warrant Certificate shall
thereafter be deemed surrendered. The Corporation shall, at all times while
Warrants are outstanding, maintain at its head office a register in which will
be entered the name, latest known address of the Holder and facsimile number of
the Holder and a register of transfers in which shall be entered the particulars
of all transfers of Warrants. The register shall at all reasonable times be open
for inspection by the Holder. The Corporation may deem and treat the registered
holder of Warrants as the absolute holder and owner of Warrants and the
Corporation shall not be affected by a notice or knowledge to the contrary. The
registered Holder shall be entitled to the rights evidenced by this Warrant
Certificate free from all equities or rights of set-off or counterclaim between
the Corporation and the original or any intermediate holder of this Warrant
Certificate.

<Page>
                                      -11-

12.      NOTICE. Any communication required or permitted to be given under this
Warrant Certificate will be in writing and will be effectively given if (i)
delivered personally, (ii) sent by prepaid courier service or mail, or (iii)
sent prepaid by facsimile transmission or other similar means of electronic
communication, in each case to the address or facsimile number of the relevant
Person. Any communication so given will be deemed to have been given and to have
been received on the day of delivery if so delivered, or on the day of facsimile
transmission or sending by other means of recorded electronic communication
provided that such day is a Business Day and the communication is so delivered
or sent prior to 4:30 p.m. (local time at the place of receipt). Otherwise, such
communication will be deemed to have been given and to have been received on the
following Business Day. Any communication sent by mail will be deemed to have
been given and to have been received on the fifth Business Day following
mailing, provided that no disruption of postal service is in effect. The
Corporation and the Holder may from time to time change their respective
addresses or facsimile numbers for notice by giving notice to the other in
accordance with the provisions of this Section.

13.      ARBITRATION If there is a disagreement or dispute between the
Corporation and the Holder with respect to the Warrants, this Warrant
Certificate or the interpretation thereof, such disagreement or dispute shall be
referred to binding arbitration to be conducted by a single arbitrator, if the
Holder and the Corporation agree upon one, otherwise three arbitrators appointed
as hereinafter set out, pursuant to the provisions of the ARBITRATION ACT, 1991
(Ontario) and any amendment thereto or replacement thereof. If either the
Corporation or the Holder wishes to arbitrate, it shall give written notice of
such intention to the other Person (a "NOTICE OF INTENTION"). The arbitrator
shall be appointed by agreement of the Holder and the Corporation or, in default
of agreement within ten (10) Business Days of service of Notice of Intention,
each of the Holder and the Corporation shall within five (5) Business Days of
the expiry of the aforesaid ten (10) Business Day period, select one arbitrator
and notify the other of its selection, with the third arbitrator to be chosen by
the first two named arbitrators within five (5) Business Days of the expiry of
the aforesaid five (5) Business Day period. If one of such Persons does not so
notify the other of its selection within the prescribed time, then the
arbitrator selected by the other Person in accordance with the above procedure
shall be the sole arbitrator. The arbitration shall be held in the City of
Toronto. The procedure to be followed shall be as agreed by the Holder and the
Corporation or, in default of agreement, determined by the arbitrator(s),
provided, however, that depositions or examinations for discovery will not be
allowed but information may be exchanged by other means. The Holder and the
Corporation will use their best efforts to ensure that the arbitration hearing
is conducted no later than sixty (60) days after the arbitrator is, or
arbitrators are, selected. The final decision of the arbitrator or arbitrators
or any two of the three arbitrators will be furnished to the Holder and the
Corporation in writing and will constitute a conclusive determination of the
issue in question, binding upon the Holder and the Corporation. The fees and
expenses of the arbitration shall be in the discretion of the arbitrator(s).
Judgment upon the award may be entered in any court of competent jurisdiction.

<Page>
                                      -12-

14.      GOVERNING LAW. The Warrants and this Warrant Certificate shall be
governed by and construed in accordance with the laws of the Province of Ontario
and the laws of Canada applicable therein. The reference to such laws shall not,
by conflict of laws rules or otherwise, require the application of the law of
any jurisdiction other than the province of Ontario. The Corporation hereby
irrevocably attorns to the non-exclusive jurisdiction of the courts of the
province of Ontario.

15.      SEVERABILITY. If any one or more of the provisions or parts thereof
contained in this Warrant Certificate should be or become invalid, illegal or
unenforceable in any respect in any jurisdiction, the remaining provisions or
parts thereof contained herein shall be and shall be conclusively deemed to be,
as to such jurisdiction, severable therefrom and:

         (1)      the validity, legality or enforceability of such remaining
                  provisions or parts thereof shall not in any way be affected
                  or impaired by the severance of the provisions or parts
                  thereof severed; and

         (2)      the invalidity, illegality or unenforceability of any
                  provision or part thereof contained in this Warrant in any
                  jurisdiction shall not affect or impair such provision or part
                  thereof or any other provisions of this Warrant Certificate in
                  any other jurisdiction.

16.      HEADINGS. The headings of the sections, subsections, paragraphs,
subparagraphs and clauses of this Warrant Certificate have been inserted for
convenience of reference only and do not define, limit, alter or enlarge the
meaning of any provision of this Warrant Certificate.

17.      NUMBERING OF ARTICLES, ETC. Unless otherwise stated, a reference herein
to a numbered or lettered section, subsection, paragraph, subparagraph or
schedule refers to the section, subsection, paragraph, subparagraph or schedule
bearing that number or letter in this Warrant Certificate.

18.      INTERPRETATION. Whenever used in this Warrant Certificate, words
importing the singular number only shall include the plural, and vice versa, and
words importing the masculine gender shall include the feminine gender. If any
provision in this Warrant Certificate refers to any action taken or to be taken
by the Corporation, or which the Corporation is prohibited from taking, such
provision will be interpreted to include any and all means, direct or indirect,
of taking, or not taking, such action. When used in this Warrant Certificate,
the word "including" (or includes) means "including (or includes) without
limitation". The words "hereon", "hereto", "hereunder", "hereof', "hereby" and
similar words shall mean or refer to this Warrant Certificate and not to any
particular section, paragraph or subparagraph. All references to dollar amounts
contained herein refer to Canadian currency. Time shall in all circumstances be
of the essence.

<Page>
                                      -13-

19.      DAY NOT A BUSINESS DAY. In the event that any day on or before which
any action is required to be taken hereunder is not a Business Day, then such
action shall be required to be taken on or before the requisite time on the next
succeeding day that is a Business Day. If the payment of any amount is deferred
for any period, then such period shall be included for purposes of the
computation of any interest payable hereunder.

20.      BINDING EFFECT. This Warrant Certificate and all of its provisions
shall enure to the benefit of the Holder and its successors and permitted
assigns and shall be binding upon the Corporation and its successors and
permitted assigns. This Warrant Certificate is not assignable by the Corporation
without the prior written consent of the Holder. This Warrant Certificate is
assignable by the Holder.

IN WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be
signed by its duly authorized officers under its corporate seal, and this
Warrant Certificate to be dated as of the 14th day of December, 2001.

                                             REGAL GREETINGS & GIFTS CORPORATION

                                             By:
                                                 -------------------------------
                                             Name: Anthony R. Calandra
                                             Authorized Signing Officer

                                             By:
                                                 -------------------------------
                                             Name:
                                             Authorized Signing Officer

                                  SCHEDULE "A"
                                SUBSCRIPTION FORM

         The undersigned, being the registered holder of the Warrants evidenced
by the Warrant Certificate bearing number A-1 dated as of December 14, 2001
issued by Regal Greetings & Gifts Corporation (the "WARRANT CERTIFICATE") hereby
exercises o Warrants for the purchase of o Common Shares in the capital of Regal
Greetings & Gifts Corporation ("COMMON SHARES") (or such number of Common Shares
or other securities or property to which such exercise of the Warrants entitles
the undersigned in lieu thereof or in addition thereto) and herewith makes
payment of the exercise price in full.

         The undersigned directs that such shares be issued and registered in
the name set out below and that a certificate for such shares be delivered to
the address set out below.

<Page>

         The Corporation is instructed to issue any Warrant Certificate to which
the undersigned may be entitled on partial exercise hereof in the name of the
undersigned and to deliver the same to the address indicated.

NAME OF REGISTERED HOLDER:
                           -----------------------------------------------------

STREET AND NUMBER:
                           -----------------------------------------------------

CITY AND PROVINCE:
                           -----------------------------------------------------

DATE:
                           -----------------------------------------------------

               SIGNATURE OF SIGNING AUTHORITY OF REGISTERED HOLDER

         The aforementioned shares are hereby directed to be issued in the name
of the following and the share certificate therefor are to be delivered to the
following address:

NAME:
         --------------------------------------------

ADDRESS:
         --------------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]