Document:

Exhibit 4.2

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      00000                     [design graphic]
  NUMBER-NUMERO                                                 SHARES-ACTIONS
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               [Zarlink logo]                     ZARLINK
                                                  S E M I C O N D U C T O R

COMMON SHARES
ACTIONS ORDINAIRES

See reverse for certain definitions
Voir certaines definitions au verso

CONTINUED UNDER THE CANADA BUSINESS CORPORATIONS ACT
PROROGEE SOUS L'AUTORITE DE LA LOI CANADIENNE SUR LES SOCIETES PAR ACTIONS

THIS CERTIFIES THAT
CECI  ATTESTE QUE

[Zarlink logo]

is the registered holder of
est le detenteur inscrit de

[Graphic of
woman with globe]

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CUSIP 989139 10 0
-----------------

Countersigned and Registered                                 Halifax
Contresigne et immatricule                                   Montreal
COMPUTERSHARE TRUST COMPANY OF CANADA                        Toronto
SOCIETE DE FIDUCIE COMPUTERSHARE DU CANADA                   Calgary
Transfer Agent and Registrar                                 Vancouver
Agent de transfert et agent comptable des registres

By:
Par:

----------------------------------------------------
              Authorized Officer-Signataire autorise

Countersigned and Registered
Contresigne et immatricule
COMPUTERSHARE TRUST COMPANY, INC.                      Denver, Colorado
Transfer Agent and Registrar                           New York, New York
Agent de transfert et agent comptable des registres

By:
Par:

----------------------------------------------------
              Authorized Officer-Signataire autorise

         FULLY PAID AND NON-ASSESSABLE COMMON SHARES WITHOUT PAR VALUE
                               IN THE CAPITAL OF

                           ZARLINK SEMICONDUCTOR INC.

transferable on the books of the Corporation by the registered holder hereof in
person or by attorney duly authorized upon surrender of this certificate
properly endorsed. This certificate is not valid until countersigned by the
Transfer Agent and registered by the Registrar of the Corporation.

      In Witness Whereof, the Corporation has caused this certificate to be
signed by its duly authorized officers.

                                     COMMON

         ACTIONS ORDINARIES ENTIEREMENT LIBEREES ET NON-COTISABLES SANS
                          VALEUR AU PAIR DU CAPITAL DE

                           ZARLINK SEMICONDUCTOR INC.

ces actions sont transferables dans les livres de la Societe par le detenteur
inscrit personnellement ou par son mandataire dument autorise sur remise de ce
certificat dument endosse. Ce certificat ne sera valide que lorsque contresigne
par l'agent de transfert et immatricule par l'agent comptable des registres de
la Societe.

      En foi de quoi, la Societe a fait signer ce certificat par ses dirigeants
dument autorises.

                                   ORDINAIRES

                         Dated:
                         Date:_________________________

President and Chief Executive Officer                            Secretary

President et chef de la direction                                Secretaire

THIS CERTIFICATE IS TRANSFERABLE AT THE PRINCIPAL OFFICES OF COMPUTERSHARE TRUST
COMPANY OF CANADA IN HALIFAX, MONTREAL, TORONTO, CALGARY AND VANCOUVER, CANADA
AND AT COMPUTERSHARE TRUST COMPANY, INC. IN DENVER, COLORADO AND NEW YORK, NEW
YORK.

CE CERTIFICAT EST TRANSFERABLE AUX BUREAUX PRINCIPAUX DE SOCIETE DE FIDUCIE
COMPUTERSHARE DU CANADA A HALIFAX, MONTREAL, TORONTO, CALGARY ET VANCOUVER,
CANADA ET A COMPUTERSHARE TRUST COMPANY, INC. A DENVER, COLORADO ET A NEW YORK,
NEW YORK.

<PAGE>

THE CLASS OF SHARES THAT THIS CERTIFICATE REPRESENTS HAS RIGHTS, PRIVILEGES,
RESTRICTIONS AND CONDITIONS ATTACHED THERETO AND THE CORPORATION WILL FURNISH TO
A SHAREHOLDER, ON DEMAND AND WITHOUT CHARGE, A FULL COPY OF THE TEXT OF THE
RIGHTS, PRIVILEGES, RESTRICTIONS AND CONDITIONS ATTACHED TO EACH CLASS
AUTHORIZED TO BE ISSUED.

LA CATEGORIE D'ACTIONS QUE CE CERTIFICAT REPRESENTE EST ASSORTIE DE DROITS,
PRIVILEGES, RESTRICTIONS ET CONDITIONS; SUR DEMANDE, LA SOCIETE FOURNIRA
GRATUITEMENT A TOUT ACTIONNAIRE LE TEXTE INTEGRAL DES DROITS, PRIVILEGES,
RESTRICTIONS ET CONDITIONS ATTACHES A CHAQUE CATEGORIE DONT L' EMISSION EST
AUTORISEE.

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The following abbreviations shall be construed as though the words set forth
below opposite each abbreviation were written out in full where such
abbreviation appears:

TEN COM
TEN ENT
JT TEN

(Name) CUST (Name) UNIF
GIFT MIN ACT (State)

-  as tenants in common
-  as tenants by the entireties
-  as joint tenants with right of survivorship and
-  not as tenants in common
-  (Name) as Custodian for (Name) under the
-  (State) Uniform Gifts to Minors Act

Additional abbreviations may also be used though not in the above list.

Les abreviations ci-dessous sont considerees, aux fins des presentes, comme l'
equivalent des mots et expressions en regard desquels elles paraissent
ci-dessous, et comme si ces mots et expressions etaient ecrits en toutes
lettres:

TEN COM
TEN ENT
JT TEN

(Nom) CUST (Nom) UNIF
GIFT MIN ACT (Etat)

-  proprietaires communs
-  proprietaires de la communaute conjugale
-  proprietaires conjoints avec droit de survie et non a titre de proprietaires
   communs
-  (Nom) en qualite de gardien pour (Nom) en vertu de la loi (d' Etat) intitulee
   "Uniform Gifts to Minors Act"

D'autres abreviations, ne figurant pas dans la liste ci-dessus, peuvent aussi
etre utilisees.
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NOTICE: The signature to this assignment must correspond with the name as
written upon the face of the certificate in every particular, without alteration
or enlargement or any change whatever.

Please insert social insurance number, social security number or other tax
identifying number of transferee.

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                     |                                     |
                     |                                     |
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Indiquer le numero d'assurance sociale, le numero de securite sociale ou autre
numero d'identification aux fins de l'impot du cessionnaire.

      For value received, the undersigned hereby sells, assigns and transfers
unto

      Pour valeur recue, le soussigne vend, cede et transporte, par les
presentes, a

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

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                                                                         Shares
-------------------------------------------------------------------------Actions
of the Capital Stock represented by the within certificate, and does hereby
irrevocably constitute and appoint

du capital-actions representees par ce certificat et constitue par les presentes

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Attorney to transfer the said Stock on the Books of the within named Corporation
with full power of substitution in the premises.

son mandataire irrevocable, avec plein droit de delegation des pouvoirs
conferes, pour le transfert de ce certificat titre au registre officiel des
actions.

Date ___________________________________________

Signature  _____________________________________

AVIS: La signature de ce transfert doit correspondre en tous points au nom porte
au recto de ce certificat sans y rien changer, ajouter ou retrancher.

                                      -15-EXHIBIT 4.3

                     CONFORMED COMPOSITE COPY OF ARTICLES OF
                           ZARLINK SEMICONDUCTOR INC.,
                               AS AMENDED TO DATE
                           (Corporation No. 030203-1)

1 - Name of Corporation

ZARLINK SEMICONDUCTOR INC.

2 - The place in Canada where the registered office is to be situated

City of Kanata, Province of Ontario

3 - The classes and any maximum number of shares that the corporation is
authorized to issue

One class of common shares.
An unlimited number of Preferred Shares issuable in series.
See Schedule 1 attached.

4 - Restrictions, if any, on share transfers

None

5 - Number (or minimum and maximum number) of directors

There shall be a minimum of five (5) and a maximum of fifteen (15) directors of
the Corporation.

6 - Restrictions, if any, on business the corporation may carry on

No restrictions

7 - Other provisions, if any

The directors of the Corporation may appoint one or more directors, who shall
hold office for a term expiring not later than the close of the next annual
meeting of shareholders of the Corporation, provided that

(i) the total number of directors of the Corporation immediately after such
appointment shall not exceed the maximum number set forth in the articles of the
Corporation, and

(ii) the total number of directors so appointed by the directors shall not
exceed one-third of the number of directors elected at the previous annual
meeting of shareholders of the Corporation.

                                      -16-
<PAGE>

                                   SCHEDULE 1

PART 1 - PREFERRED SHARES
-------------------------

A. The number of shares the Corporation is authorized to issue is hereby
increased by creating an unlimited number of Preferred Shares issuable in
series;

B. The rights, privileges, conditions, restrictions, limitations and
prohibitions attaching to the Preferred Shares of the Corporation as a class are
as follows:

(i) the directors of the Corporation may, at any time and from time to time,
issue the Preferred Shares in one or more series, each series to consist of such
number of shares as may before issuance thereof be fixed by the directors;

(ii) the directors of the Corporation may (subject as hereinafter provided) from
time to time before issuance determine the designation, rights, privileges,
restrictions and conditions to attach to the Preferred Shares of each series
including, without limiting the generality of the foregoing, the rate, amount or
method of calculation of preferential dividends, whether cumulative or
non-cumulative or partially cumulative, and whether such rate, amount or method
of calculation shall be subject to change or adjustment in the future, the
currency or currencies of payment, the date or dates and place or places of
payment thereof and the terms and conditions of redemption, the rights of
retraction, if any, vested in the holder of Preferred Shares of such series, and
the prices and the other terms and conditions of any rights of retraction and
whether any additional rights of retraction may be vested in such holders in the
future, voting rights and conversion rights (if any) and any sinking fund,
purchase fund or other provisions attaching to the Preferred Shares of such
series, the whole subject to the issue by the Director, Corporations Branch,
Department of Consumer and Corporate Affairs, of a certificate of amendment in
respect of articles of amendment in prescribed form to designate a series of
shares;

(iii) when any fixed cumulative dividends or amounts payable on a return of
capital are not paid in full, the Preferred Shares of all series shall
participate rateably in respect of such dividends including accumulations, if
any, in accordance with the amounts which would be payable on the Preferred
Shares if all such dividends were declared and paid in full, and on any return
of capital in accordance with the sums which would be payable on such return of
capital if all amounts so payable were paid in full;

(iv) the Preferred Shares shall be entitled to preference over the common shares
of the Corporation (the "Common Shares") and any other shares of the Corporation
ranking junior to the Preferred Shares with respect to the payment of dividends
and may also be given such other preferences over the Common Shares and any
other shares of the Corporation ranking junior to the Preferred Shares as may be
fixed by the directors of the Corporation as to the respective series authorized
to be issued;

(v) the Preferred Shares of each series shall rank on a parity with the
Preferred Shares of every other series with respect to priority in payment of
dividends and in the distribution of assets in the event of liquidation,
dissolution or winding-up of the Corporation, whether voluntary or involuntary;

                                      -17-
<PAGE>

(vi) in the event of the liquidation, dissolution or winding-up of the
Corporation or other distribution of assets of the Corporation among
shareholders for the purpose of winding-up its affairs, the holders of the
Preferred Shares shall, before any amount shall be paid to or any property or
assets of the Corporation distributed among the holders of the Common Shares or
any other shares of the Corporation ranking junior to the Preferred Shares, be
entitled to receive (a) an amount equal to the amount of the redemption price
specified therefor, together with, in the case of cumulative Preferred Shares,
all unpaid cumulative dividends (which for such purpose shall be calculated as
if such cumulative dividends were accruing from day to day for the period from
the expiration of the last period for which cumulative dividends have been paid
up to and including the date of distribution) and in the case of non-cumulative
Preferred Shares, all declared and unpaid non-cumulative dividends, and (b) if
such liquidation, dissolution, winding-up or distribution shall be voluntary, an
additional amount equal to the premium, if any, which would have been payable on
the redemption of the said Preferred Shares if they had been called for
redemption by the Corporation on the date of liquidation, dissolution,
winding-up or distribution and, if said Preferred Shares could not be redeemed
on such date, then an additional amount equal to the greatest premium, if any,
which would have been payable on the redemption of said Preferred Shares;

(vii) no dividends shall at any time be declared or paid on or set apart for
payment on the Common Shares or any other shares of the Corporation ranking
junior to the Preferred Shares unless all dividends up to and including the
dividend payable for the last completed period for which such dividends shall be
payable on each series of Preferred Shares then issued and outstanding shall
have been declared and paid or set apart for payment at the date of such
declaration or payment or setting apart for payment on the Common Shares or such
other shares of the Corporation ranking junior to the Preferred Shares nor shall
the Corporation call for redemption or redeem or purchase for cancellation or
reduce or otherwise pay off any of the Preferred Shares (less than the total
amount then outstanding) or any Common Shares or any other shares of the
Corporation ranking junior to the Preferred Shares unless all dividends up to
and including the dividend payable for the last completed period for which such
dividends shall be payable on each series of the Preferred Shares then issued
and outstanding shall have been declared and paid or set apart for payment at
the date of such call for redemption, purchase, reduction or other payment;

(viii) the Preferred Shares of any series may be purchased for cancellation or
made subject to redemption by the Corporation at such times and at such prices
and upon such other terms and conditions as may be specified in the rights,
privileges, restrictions and conditions attaching to the Preferred Shares of
such series as set forth in the resolution of the board of directors of the
Corporation and certificate of amendment relating to such series;

(ix) the approval of the holders of the Preferred Shares, given in the manner
described in paragraph (x) below, shall be required (a) for the creation of any
new shares ranking prior to or on a parity with the Preferred Shares and (b) if,
but only so long as, any dividends are in arrears on any outstanding series of
Preferred Shares, for the issuance of any additional series of Preferred Shares
or of any share ranking prior to or on a parity with the Preferred Shares; and

(x) the provisions of paragraph (i) to (ix), inclusive, and of this paragraph
(x) may be repealed, altered, modified, amended or varied in whole or in part
only with the prior approval of the holders of the Preferred Shares given in the
manner hereinafter specified in addition to any other approval required by the
Canada Business Corporations Act or any other applicable statutory

                                      -18-
<PAGE>

provision of like or similar effect, from time to time in force. The approval of
the holders of the Preferred Shares with respect to any and all matters
hereinbefore referred to may be given by at least 66 2/3% of the votes cast at a
meeting of the holders of the Preferred Shares duly called for that purpose and
held upon at least 21 days' notice at which the holders of a majority of the
outstanding Preferred Shares are present or represented by proxy. If at any such
meeting the holders of a majority of the outstanding Preferred Shares are not
present or represented by proxy within one-half an hour after the time appointed
for such meeting, then the meeting shall be adjourned to such date being not
less than 30 days later and to such time and place as may be appointed by the
chairman of the meeting and not less than 21 days' notice shall be given of such
adjourned meeting but it shall not be necessary in such notice to specify the
purpose for which the meeting was originally called. At such adjourned meeting
the holders of the Preferred Shares present or represented by proxy may transact
the business for which the meeting was originally called and a resolution passed
thereat by not less than 66 2/3% of the votes cast at such adjourned meeting and
the conduct thereof shall be from time to time prescribed by the by-laws of the
Corporation with respect to meetings of shareholders. On every poll taken at
every such meeting or adjourned meeting every holder of Preferred Shares shall
be entitled to one vote in respect of each Preferred Share held by him.

                                      -19-
<PAGE>

PART 2 - $2.00 CUMULATIVE REDEEMABLE CONVERTIBLE PREFERRED SHARES, 1983 R & D
-----------------------------------------------------------------------------
SERIES
------

A. The directors of the Corporation hereby fix the number of shares for the
first series of the Preferred Shares at 2,240,000 shares;

B. The directors of the Corporation hereby determine that the designation of the
first series of the Preferred Shares is $2.00 Cumulative Redeemable Convertible
Preferred Shares, 1983 R & D Series (hereinafter called the "1983 R & D Series
Shares") and that the rights, privileges, restrictions and conditions attaching
to the 1983 R & D Series Shares (in addition to the rights, privileges,
conditions, restrictions, limitations and prohibitions attaching to the
Preferred Shares as a class) shall be as follows:

                                    ARTICLE 1
                                 Interpretation

1.1 Definitions
    -----------

"Business Day" means any day other than a Saturday, Sunday or statutory holiday;

"cash dividend paid in the ordinary course" means cash dividends declared and
payable on the Common Shares in any financial year of the Corporation to the
extent that such dividends do not exceed the greater of (i) 100% of the
consolidated net income of the Corporation, before extraordinary items, for the
immediately preceding financial year of the Corporation as determined by the
auditors of the Corporation in accordance with generally accepted accounting
principles in Canada and (ii) 5% of the average value at which the Common Shares
were carried in the capital stock account of the Corporation in the year;

"close of business" means the normal closing hour of the principal office in the
City of Toronto of the transfer agent and registrar;

"Common Shares" means the Common Shares of the Corporation;

"Conversion Price" at any date means $19.25 per share (being at a rate of 1.2987
Common Shares per 1983 R & D Series Share) unless such price shall have been
adjusted in accordance with the provisions of Section 3.4 in which event it
shall mean the adjusted price in effect at such time;

"Current Market Price per Common Share" at any date means the weighted average
closing price per Common Share at which the Common Shares have traded on The
Toronto Stock Exchange during 20 consecutive trading days (on each of which at
least 500 Common Shares were traded in board lots) ending on the fifth trading
day before such date;

"Date of Conversion" has the meaning given to that expression in Section 3.2;

"Directors" means the board of directors of the Corporation and reference
without more to action by the Directors shall mean action by the Directors as a
board or by any authorized committee thereof;

"Expiry Time" means the close of business in Ottawa, Canada on December 31,
1988;

                                      -20-
<PAGE>

"herein", "hereto", "hereunder", "hereof", "hereby" and similar expressions mean
or refer to these 1983 R & D Series Share provisions and not to any particular
Section, subsection, subdivision or portion hereof, and the expressions
"Article", "Section" and "subsection", followed by a number and/or a letter mean
and refer to the specified Article, Section or subsection hereof;

"Holder" means the registered holder of any 1983 R & D Series Shares;

"Notice of Redemption" means a notice in writing given, as hereinafter provided,
by the Corporation to the holders of 1983 R & D Series Shares setting forth the
Redemption Price, the Current Market Price per Common Share, the Conversion
Price (each as at the date of such notice), the place at which redemption is to
take place, and, if part only of the 1983 R & D Series Shares is to be redeemed,
the number thereof to be redeemed;

"Redemption Date" means the date fixed by the Directors for redemption of 1983 R
& D Series Shares set forth in the Notice of Redemption;

"Redemption Price" means the price per 1983 R & D Series Share, including
accrued and unpaid dividends, specified in Section 4.1 or 4.2, as the case may
be;

"transfer agent and registrar" means the person or persons from time to time
appointed by the Directors as the transfer agent and registrar in Canada for the
1983 R & D Series Shares.

1.2 Words importing the singular number only include the plural and vice versa
and words importing any gender include all genders.

1.3 All dollar amounts referred to herein shall be in lawful money of Canada.

1.4 The division of these 1983 R & D Series Share provisions into Articles,
Sections, subsections, clauses, subclauses or other subdivisions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation hereof.

1.5 In the event that any date upon which any dividends on the 1983 R & D Series
Shares are payable by the Corporation, or upon or by which any other action is
required to be taken by the Corporation hereunder is not a Business Day, then
such dividend shall be payable or such other action shall be required to be
taken on or by the next succeeding day which is a Business Day.

                                    ARTICLE 2
                                    Dividends

2.1 The Holders shall be entitled to receive, and, subject to Section 2.3, the
Corporation shall pay, as and when declared by the Directors out of moneys of
the Corporation available for the payment of dividends, fixed cumulative
preferential cash dividends at the rate of $2.00 per 1983 R & D Series Share per
annum accruing in the case of each such share from the date of issue and payable
in equal quarterly instalments of $0.50 on the last day of March, June,
September and December in each year with the first such dividend to be paid, if
declared, on the first such payment date after the date of issue. Cheques drawn
on a Canadian chartered bank and payable at par at any branch in Canada of such
bank shall be issued in respect of such dividends to the Holders entitled
thereto. If on any dividend payment date dividends payable on such date are not
paid in full on all the 1983 R & D Series Shares then issued and outstanding,
such dividends or the unpaid part thereof shall be paid on a subsequent date or
dates as determined by the

                                      -21-
<PAGE>

Directors. The Holders shall not be entitled to any dividends other than or in
excess of the cash dividends herein provided for. A dividend which is
represented by a cheque which has not been presented for payment within six
years after it was issued or that otherwise remains unclaimed for a period of
six years from the date it was declared to be payable and set apart for payment
shall be forfeited to the Corporation.

2.2 The amount of the dividend for any period which is less than a full calendar
quarter with respect to any 1983 R & D Series Share:

(a) which is issued, redeemed, purchased or converted; or

(b) where assets of the Corporation are distributed to the Holders pursuant to
the conditions in that respect attaching to the Preferred Shares as a class;

shall be equal to the amount rounded to the nearest 1/100th of one cent
calculated by multiplying $0.50 by a fraction of which the numerator is the
number of days in such quarter such share has been outstanding (including the
dividend payment date at the beginning of such quarter if such share was
outstanding on that date and excluding the dividend payment date at the end of
such quarter if such share was outstanding on that date or the date on which
such dividend became payable, as the case may be) and the denominator is the
number of days in such quarter (including the dividend payment date at the
beginning thereof and excluding the dividend payment date at the end thereof).

2.3 Dividend payments shall be adjusted to avoid payments of a fraction of a
cent.

2.4 The Holders as of the record date for any dividend declared to be payable on
the 1983 R & D Series Shares shall be entitled to such dividend notwithstanding
that such share is converted after such record date and before the payment date
of such dividend and the registered holder of any share issued upon conversion
of a 1983 R & D Series Share shall be entitled to any dividend declared to be
payable to holders of such shares of record on any date after the Date of
Conversion. Subject as aforesaid, upon the conversion of any 1983 R & D Series
Share the Corporation shall make no payment or adjustment on account of any
dividends on the 1983 R & D Series Share so converted or on account of any
dividends on the Common Shares issuable upon such conversion.

                                    ARTICLE 3
                          Conversion into Common Shares

3.1 Each 1983 R & D Series Share shall be convertible at any time up to but not
after the close of business on December 31, 1988 or, in the case of any
Preferred Share, 1983 R & D Series called for redemption, up to but not after
the close of business on the third business day prior to the Redemption Date,
whichever is earlier, into fully paid and non-assessable Common Shares on the
basis of dividing the quotient obtained by $25.00 by the Conversion Price in
effect on the Date of Conversion.

3.2 In order to exercise the conversion right, a Holder shall present and
surrender to the transfer agent and registrar for the Common Shares the
respective certificates representing such 1983 R & D Series Shares together with
written notice of conversion (which shall be and be deemed to be irrevocable)
signed by such Holder stating that he elects to convert such 1983 R & D Series
Shares at the Conversion Price. Such notice of conversion shall also state the
name or names

                                      -22-
<PAGE>

(with addresses) in which the certificate or certificates for Common Shares
which shall be issuable on such conversion shall be issued. If any of the Common
Shares into which such 1983 R & D Series Shares are to be converted are to be
issued to a person or persons other than the Holder of such 1983 R & D Series
Shares, the signature of such Holder on such notice of conversion shall be
guaranteed in a manner satisfactory to the transfer agent and registrar and such
notice of conversion shall be accompanied by payment to the transfer agent and
registrar of any transfer tax which may be payable by reason thereof. The date
of receipt by the transfer agent and registrar of certificates representing such
1983 R & D Series Shares and such notice of conversion is herein referred to as
the "Date of Conversion" of such 1983 R & D Series Shares.

As promptly as practicable after the Date of Conversion, the Corporation shall
issue or cause to be issued and deliver or cause to be delivered to the Holder
who has exercised the conversion right in respect of any 1983 R & D Series
Shares, or on his written order, a certificate or certificates in the name or
names of the person or persons specified in the applicable notice of conversion
for the number of Common Shares deliverable upon the conversion of such 1983 R &
D Series Shares and provision shall be made in respect of any fraction of a
share as provided in Section 3.3. Such conversion shall be deemed to have been
effected immediately prior to the close of business on the Date of Conversion
and at such time the rights of the Holder of such 1983 R & D Series Shares as
such Holder shall, subject to the provisions of Section 3.4, cease and the
person or persons in whose name or names any certificate or certificates for
Common Shares shall be deliverable upon such conversion shall be deemed to have
thereupon become the holder or holders of record of the Common Shares
represented thereby; provided, however, that no exercise of the conversion right
on any date when the share transfer registers for Common Shares of the
Corporation shall be closed shall be effective to constitute the person or
persons entitled to receive the Common Shares upon such conversion as the holder
or holders of record of such Common Shares on such date, but such exercise shall
be effective to constitute the person or persons entitled to receive such Common
Shares as the holder or holders of record thereof for all purposes at the close
of business on the next succeeding day on which such share transfer registers
are open and such conversion shall be at the Conversion Price in effect at the
close of business on such next succeeding day.

Upon surrender to the transfer agent and registrar of any certificate
representing more than the number of 1983 R & D Series Shares which are to be
converted, the holder thereof shall be entitled to receive, without expense to
such holder, one or more new certificates for the number of unconverted 1983 R &
D Series Shares represented by the certificate surrendered.

3.3 Notwithstanding anything herein contained, the Corporation shall in no case
be required to issue a fraction of a Common Share upon the conversion of any
1983 R & D Series Share. In lieu thereof, the Corporation shall pay to the
Holder by cheque an amount equal to the then current market value of such
fractional interest computed (to the nearest cent) on the basis of the last
board lot sale price on The Toronto Stock Exchange, on the trading day next
preceding the Date of Conversion, or, if the Common Shares are not listed on The
Toronto Stock Exchange, on such stock exchange on which the Common Shares are
listed as may be selected for such purpose by the Directors. If the Common
Shares are not listed on any stock exchange, the current market value of such
fractional interest shall be determined by the Directors.

3.4 The Conversion Price and the number of Common Shares into which each 1983 R
& D Series Share may be converted shall be subject to adjustment from time to
time as follows:

                                      -23-
<PAGE>

(1) If and whenever at any time prior to the Expiry Time the Corporation shall
(i) issue Common Shares to the holders of all or substantially all of its Common
Shares by way of a stock dividend (other than the issue of Common Shares as a
stock dividend in lieu of a cash dividend paid in the ordinary course), (ii)
subdivide its outstanding Common Shares into a greater number of shares, or
(iii) consolidate its outstanding Common Shares into a lesser number of shares,
the Conversion Price shall be proportionately adjusted so that a Holder who has
not exercised the conversion right prior to the record date for such dividend or
the effective date of such subdivision or consolidation shall be entitled to
receive and shall accept upon the exercise of such right at any time on or after
such record date or effective date, in lieu of (or, in the case of a dividend or
distribution referred to in clause (i) above, in addition to) the number of
Common Shares which he is otherwise entitled to receive at the time he exercises
the conversion right, the aggregate number of Common Shares that such Holder
would have been entitled to receive as a result of such dividend, distribution,
subdivision or consolidation if, on the record date or effective date thereof,
he had been the registered holder of the number of Common Shares that he is
otherwise entitled to receive at the time he exercises the conversion right. Any
dividend or distribution on the Common Shares of the Corporation in Common
Shares shall be deemed to have been issued or made immediately prior to the time
of the record date for such dividend or distribution for purposes of calculating
the number of outstanding Common Shares under subsections (2) and (3) below.
Such adjustments shall be made successively whenever any event listed above
shall occur.

(2) If and whenever at any time prior to the Expiry Time the Corporation shall
fix a record date for the issuance of options, rights or warrants to the holders
of all or substantially all its Common Shares entitling them, for a period
expiring not more than 45 days after such record date, to subscribe for or
purchase Common Shares (or securities convertible or exchangeable into Common
Shares, other than 1983 R & D Series Shares) at a price per share (or having a
conversion or exchange price per share) which is less than 95% of the Current
Market Price per Common Share on such record date, the Conversion Price shall be
and be deemed to be adjusted immediately after the close of business on such
record date so that it shall equal the price determined by multiplying the
Conversion Price in effect on such record date by a fraction, of which the
numerator shall be the total number of Common Shares outstanding at the close of
business on such record date plus a number of Common Shares equal to the number
arrived at by dividing the aggregate price of the total number of additional
Common Shares so offered (or the aggregate conversion or exchange price of the
convertible or exchangeable securities so offered) by such Current Market Price
per Common Share and of which the denominator shall be the total number of
Common Shares outstanding at the close of business on such record date plus the
total number of additional Common Shares offered for subscription or purchase
(or into which the convertible or exchangeable securities so offered are
convertible or exchangeable, as the case may be). Common Shares owned by or held
for the account of the Corporation shall be deemed not to be outstanding for the
purpose of any such computation. Such adjustment shall be made successively
whenever such record date is fixed. To the extent that such options, rights or
warrants are not so issued or such option, rights or warrants are not exercised
prior to the expiration thereof, the Conversion Price shall thereupon be
readjusted in accordance with the foregoing determination to the Conversion
Price which would then be in effect based upon the number of Common Shares (or
securities convertible or exchangeable into Common Shares) actually delivered
upon the exercise of such options, rights or warrants.

(3) If and whenever at any time prior to the Expiry Time the Corporation shall
fix a record date for the making of a distribution to the holders of all or
substantially all of its Common Shares of

                                      -24-
<PAGE>

(i) shares of any class other than Common Shares whether of the Corporation or
any other corporation (other than shares distributed to the holders of Common
Shares as a stock dividend in lieu of a cash dividend paid in the ordinary
course), (ii) evidences of its indebtedness, (iii) assets (other than as cash
dividends paid in the ordinary course) or (iv) of options, rights or warrants
(excluding those referred to in subsection (2) above), then in each such case
the Conversion Price shall be and be deemed to be adjusted immediately after the
close of business on such record date so that it shall equal the price
determined by multiplying the Conversion Price in effect on such record date by
a fraction, of which the numerator shall be the total number of Common Shares
outstanding at the close of business on such record date multiplied by the
Current Market Price per Common Share on such record date, less the fair market
value (as determined by the board of directors, whose determination shall be
conclusive) of said shares or evidences of indebtedness or assets or options,
rights or warrants so distributed, and of which the denominator shall be the
total number of Common Shares outstanding at the close of business on such
record date multiplied by such Current Market Price per Common Share. Common
Shares owned by or held for the account of the Corporation shall be deemed not
to be outstanding for the purpose of any such computation. Such adjustment shall
be made successively whenever such a record date is fixed. To the extent that
such distribution is not so made, the Conversion Price shall thereupon be
readjusted in accordance with the foregoing determination to the Conversion
Price which would then be in effect based upon the fair market value of said
shares or evidences of indebtedness or assets or options, rights or warrants
actually distributed.

(4) No adjustments of the Conversion Price shall be made pursuant to clause (i)
of subsection (1) or pursuant to subsections (2) and (3) above if the Holders
are permitted to participate in such dividend or distribution on the Common
Shares in Common Shares or in the issue of such options, rights, warrants or
such distribution, as the case may be, as though and to the same effect as if
they had converted their 1983 R & D Series Shares into Common Shares prior to
the record date for such dividend or distribution or the issue of such options,
rights or warrants or such distribution, as the case may be.

(5) In any case in which this Section shall require that an adjustment shall
become effective immediately after a record date for an event, the Corporation
may defer until the occurrence of such event (i) issuing to the Holder of any
1983 R & D Series Shares converted after such record date and before the
occurrence of such event the additional Common Shares issuable upon such
conversion by reason of the adjustment required by such event over and above the
Common Shares issuable upon such conversion before giving effect to such
adjustment and (ii) paying to such Holders in cash the current market value of
any fractional interest in such Common Shares to which he is entitled pursuant
to Section 3.3; provided, however, that the Corporation shall deliver to such
holder an appropriate instrument evidencing such holder's rights to receive such
additional Common Shares and cash payments upon the occurrence of the event
requiring such adjustment.

(6) No adjustment in the Conversion Price shall be required unless such
adjustment would require an increase or decrease of at least one percent in such
price; provided, however, that any adjustments which by reason of this
subsection (6) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment.

3.5 The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment in the Conversion Price as above
provided, lodge with the transfer agent and registrar, a certificate of the
chief financial officer specifying the nature of the event

                                      -25-
<PAGE>

requiring the adjustment and the amount of the adjustment thereby necessitated
and setting forth in reasonable detail the method of calculation and the facts
upon which such calculation is based, which certificate and the amount of the
adjustment therein specified shall be verified by an opinion of the
Corporation's auditors and, when so verified shall be conclusive and binding on
all parties in interest. The Corporation shall forthwith give notice of such
adjustment to each Holder, which notice shall specify the Conversion Price after
such adjustment and the event requiring such adjustment.

3.6 In the event that the Corporation shall determine to:

(1) declare on its Common Shares any cash dividend per share which when added to
the sum of the last four cash dividends per share paid on its Common Shares
would exceed the sum of such last four cash dividends per share by more than
50%;

(2) declare on its Common Shares any dividends payable in shares of the
Corporation (other than a stock dividend in lieu of a cash dividend paid in the
ordinary course) or make any other distribution on its Common Shares (other than
a cash dividend);

(3) offer for subscription pro rata to the holders of all or substantially all
of its Common Shares any additional securities or shares of any class
convertible into or exchangeable for Common Shares or issue any other options,
rights or warrants to all or substantially all of such holders;

(4) effect a reclassification or change of the Common Shares of the nature
referred to in Section 3.7 or an amalgamation or merger of the Corporation with
or into any other corporation or a sale, transfer or other disposition of all or
substantially all of the assets of the Corporation; or

(5) proceed with a voluntary or involuntary dissolution, liquidation or
winding-up of the Corporation;

then, in each such case, the Corporation shall give notice to each Holder of the
action proposed to be taken and the date on which (a) the books of the
Corporation shall close or a record shall be taken for such dividend,
distribution, subscription rights or other options, rights or warrants or (b)
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition, dissolution, liquidation or winding-up shall take place, as the
case may be, provided that the Corporation shall only be required to specify in
such notice such particulars of such action as shall have been fixed and
determined at the date on which such notice is given. Such notice shall also
specify the date as of which the holders of Common Shares of record shall
participate in such dividend, distribution, subscription rights or other
options, rights or warrants, or shall be entitled to exchange their Common
Shares for securities or other property deliverable upon such reclassification,
change, amalgamation, merger, sale, transfer or other disposition, dissolution,
liquidation or winding-up as the case may be. Such written notice shall be
given, with respect to the actions described in subsections (1), (2) and (3)
above, not less than 15 days and, with respect to the actions described in
subsections (4) and (5) above, not less than 30 days, in each case prior to the
record date or the date on which the Corporation's transfer books are to be
closed with respect thereto.

3.7 In the event of any reclassification of or change in the Common Shares
(other than a change as a result of a subdivision or consolidation), or in the
event of any amalgamation of the Corporation with, or merger of the Corporation
into, any other corporation (other than an amalgamation or merger in which the
Corporation is the continuing corporation and which does

                                      -26-
<PAGE>

not result in any reclassification or change of the Common Shares), or in the
event of any sale, transfer or other disposition of all or substantially all of
the assets of the Corporation, the Holder of each 1983 R & D Series Share then
outstanding shall be entitled to receive and shall accept upon the conversion of
a 1983 R & D Series Share at any time on the effective date or thereafter (until
the expiration of the conversion right of such Holder), in lieu of the Common
Shares which he is otherwise entitled to receive at the time he exercises the
conversion right, the kind and amount of shares and other securities and
property that such Holder would have been entitled to receive as a result of
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition if, on the effective date thereof, he had been the registered holder
of the number of Common Shares that he is otherwise entitled to receive at the
time he exercises the conversion right subject to such adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article. The provisions of this Section 3.7 shall similarly apply to
successive reclassifications, changes, amalgamations, mergers, sales, transfers
or other dispositions.

3.8 All 1983 R & D Series Shares surrendered upon the exercise of the conversion
right shall be cancelled by the transfer agent and registrar and the number
thereof shall not be restored to the status of authorized but unissued shares.

3.9 As a condition precedent to the taking of any action which would require an
adjustment to the Conversion Price, the Corporation shall take any corporate
action which may, in the opinion of counsel, be necessary in order that the
Corporation shall have unissued and reserved the number of authorized Common
Shares to which the Holders are entitled on the full exercise of their
conversion rights in accordance with the provisions hereof.

3.10 If any Common Shares reserved or to be reserved for the purpose of
conversion of the 1983 R & D Series Shares hereunder, require registration with
or approval of any governmental authority under any Canadian or Provincial law
before such shares may be validly issued upon conversion, the Corporation will
take such action as may be necessary to secure such registration or approval, as
the case may be.

                                    ARTICLE 4
                             Redemption and Purchase

4.1 Subject to the provisions of Section 4.2, the Corporation may not redeem any
1983 R & D Series Shares prior to January 1, 1989. Thereafter, subject to the
provisions of any applicable law and to the provision of the conditions
attaching to the Preferred Shares as a class relating to liquidation,
dissolution, winding up and distribution of assets, the Corporation may, at its
option, redeem the 1983 R & D Series Shares in whole at any time or in part from
time to time by lot or in such manner as the Directors shall determine on
payment for each such share to be redeemed of $25.00 plus accrued and unpaid
dividends.

4.2 If the Current Market Price per Common Share on the date Notice of
Redemption is given is greater than 125% of the Conversion Price, the
Corporation may, at its option, on or after January 1, 1987 redeem the 1983 R &
D Series Shares in whole at any time or in part from time to time by lot or in
such manner as the directors shall determine on payment for each such share to
be redeemed of $25.00 plus a redemption premium of $1.00 per share if the
Redemption Date is on or prior to December 31, 1987 and of $0.50 per share if
the Redemption Date is after December 31, 1987 and on or prior to December 31,
1988, plus accrued and unpaid dividends to

                                      -27-
<PAGE>

the date of redemption. The Corporation shall on such date file with the
transfer agent and registrar a certificate under the hand of its chief financial
officer certifying as to the Current Market Price per Common Share and the
Conversion Price then in effect.

4.3 A Notice of Redemption shall be given by the Corporation not less than 30
days prior to the date fixed for redemption to each Holder of 1983 R & D Series
Shares to be redeemed. Accidental failure or omission to give such notice to one
or more of such Holders shall not affect the validity of such redemption. On and
after the Redemption Date, the Corporation shall pay or cause to be paid to or
to the order of the Holders of the 1983 R & D Series Shares to be redeemed the
Redemption Price on presentation and surrender at the place of redemption of the
respective certificates representing such shares. Such payment shall be made by
cheque drawn on a Canadian chartered bank and payable at par at any branch in
Canada of such bank. Such shares in respect of which the Redemption Price has
been paid as aforesaid shall thereupon be redeemed. If less than all the 1983 R
& D Series Shares represented by any certificate shall be redeemed, a new
certificate for the balance shall be issued. From and after the Redemption Date,
the Holders of the 1983 R & D Series Shares called for redemption shall cease to
be entitled to dividends or to exercise any of the rights of Holders in respect
thereof unless payment of the Redemption Price shall not be made in accordance
with the foregoing provisions, in which case the rights of the Holders shall
remain unimpaired. The Corporation shall have the right at any time after
mailing a Notice of Redemption to deposit the Redemption Price of the shares
thereby called for redemption, or such part thereof as at the time of deposit
has not been claimed by the shareholders entitled thereto, in any Canadian
chartered bank or trust company in Canada specified in the Notice of Redemption
or in a subsequent notice to the Holders in respect of which the deposit is
made, in a special account for the Holders of such shares, and upon such deposit
being made or upon the Redemption Date, whichever is later, the 1983 R & D
Series Shares in respect of which such deposit shall have been made shall be
deemed to be redeemed and the rights of each Holder shall be limited to
receiving, without interest, his proportionate part of the Redemption Price so
deposited upon presentation and surrender of the certificates representing his
shares so redeemed. Any interest on such deposit shall belong to the
Corporation.

4.4 Subject to the provisions of any applicable law and to Article 5, the
Corporation may, in addition to its right to redeem 1983 R & D Series Shares as
provided above, purchase at any time all or from time to time any number of the
outstanding 1983 R & D Series Shares in the open market or pursuant to tenders
received by the Corporation upon invitation for tenders addressed to all Holders
of the 1983 R & D Series Shares at the lowest price or prices at which in the
opinion of the Directors such shares are obtainable but not exceeding the
applicable Redemption Price plus any premium on redemption which would be
required to be paid by the Corporation if the Corporation were then able to
effect a redemption plus reasonable costs of purchase. If upon any invitation
for tenders the Corporation receives tenders, for 1983 R & D Series Shares at
the same price in an aggregate number greater than the number for which the
Corporation is prepared to accept tenders, the shares to be purchased shall be
selected from the shares offered at such price as nearly as may be pro rata,
disregarding fractions, according to the number of 1983 R & D Series Shares
offered in each such tender, in such manner as the Directors in their sole
discretion shall determine.

                                      -28-
<PAGE>

                                    ARTICLE 5
                                  Purchase Fund

5.1 The Corporation shall make all reasonable efforts to purchase in each
calendar quarter, commencing with the calendar quarter beginning on January 1,
1989, 1% of the 1983 R & D Series Shares outstanding at the close of business on
December 31, 1988 at a price not exceeding the Redemption Price plus reasonable
costs of purchase.

5.2 To the extent that, notwithstanding the making of all reasonable efforts,
the Corporation is unable to purchase such number of 1983 R & D Series Shares in
any calendar quarter, such purchase obligation shall carry forward to the
succeeding calendar quarters in the same calendar year and to the extent not
satisfied at the end of such calendar year shall thereupon be extinguished. The
Corporation shall not be required to purchase any 1983 R & D Series Shares if
and so long as such purchase would be contrary to any applicable law or to the
provisions of Section 6.1. 1983 R & D Series Shares redeemed or purchased by the
Corporation pursuant to Article 4 may be applied by the Corporation in the year
of redemption as a credit against its purchase obligations in that year.

                                    ARTICLE 6
            Restrictions on Dividends, Issue and Retirement of Shares

6.1 So long as any of the 1983 R & D Series Shares are outstanding, the
Corporation shall not, without the approval of the holders of 66 2/3% of the
1983 R & D Series Shares:

(a) declare, pay or set apart for payment any dividends (other than stock
dividends in shares of the Corporation ranking junior to the 1983 R & D Series
Shares) on any shares of the Corporation ranking junior to the 1983 R & D Series
Shares;

(b) redeem, purchase or make any capital distribution on or in respect of any
shares ranking junior to the 1983 R & D Series Shares (except out of the net
cash proceeds of a substantially concurrent issue of shares of the Corporation
ranking junior to the 1983 R & D Series Shares);

(c) redeem, purchase or otherwise retire for value less than all of the 1983 R &
D Series Shares;

(d) except pursuant to a purchase obligation or in connection with the exercise
of a retraction privilege attaching to shares of the Corporation heretofore or
hereafter issued, redeem, purchase or make any capital distribution on or in
respect of any other shares of the Corporation ranking on a parity with the 1983
R & D Series Shares in respect of the payment of dividends and the distribution
of assets in the event of the liquidation, dissolution or winding-up of the
Corporation, whether voluntary or involuntary, or in the event of any other
distribution of assets of the Corporation among its shareholders for the purpose
of winding-up its affairs; or

(e) issue any shares ranking prior to or on a parity with the 1983 R & D Series
Shares, except any series of shares of the same class which the Corporation may
be under an obligation, contingent or otherwise, to issue at the date of issue
of the R & D Series Shares;

unless in each such case all dividends on the outstanding 1983 R & D Series
Shares and on all other shares ranking on a parity with or in priority to the
1983 R & D Series Shares accrued up to and including the dividend payable on the
last preceding date for payment of dividends on the

                                      -29-
<PAGE>

1983 R & D Series Shares and on all other shares ranking on a party with or in
priority to the 1983 R & D Series Shares shall have been declared and paid or
set apart for payment.

                                    ARTICLE 7
                                  Voting Rights

7.1 Except as provided by Section 7.2 and in the provisions attaching to the
Preferred Shares as a class, the holders of 1983 R & D Series Shares shall not
be entitled as such to receive notice of or to attend or to vote at any meeting
of shareholders of the Corporation.

7.2 If the Corporation from time to time fails to pay in aggregate eight
quarterly cumulative preferential dividends on the 1983 R & D Series Shares on
the dates on which the same should be paid, whether or not there are any monies
of the Corporation properly applicable to the payment of dividends, then so long
as any dividends on such shares remain in arrears, the Holders shall be entitled
to receive notice of and to attend all meetings of the shareholders of the
Corporation at which it is proposed that directors will be elected and shall be
entitled at each such meeting to vote separately as a class to elect one
director, if the number of directors of the Corporation is ten or less, or two
directors, if the number of directors is more than ten. Under such
circumstances, each Preferred Share, 1983 R & D Share shall carry one vote.

                                    ARTICLE 8
                                  Miscellaneous

8.1 The rights, privileges, restrictions and conditions attaching to the 1983 R
& D Series Shares may be repealed, altered, modified, amended or varied in whole
or in part only with the prior approval of the Holders given in the manner
provided in Section 8.2 in addition to any other approval required by the Canada
Business Corporations Act or any other applicable statutory provision of like or
similar effect, from time to time in force.

8.2 The approval of the Holders with respect to any and all matters hereinbefore
referred to may be given by at least 66 2/3% of the votes cast at a meeting of
the Holders duly called for that purpose and held upon at least 21 days' notice,
at which the Holders of a majority of the outstanding 1983 R & D Series Shares
are present or represented by proxy. If at any such meeting the Holders of a
majority of the outstanding 1983 R & D Series Shares are not present or
represented by proxy within one-half an hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being not less than 30
days later and to such time and place as may be appointed by the chairman of the
meeting and not less than 21 days' notice shall be given of such adjourned
meeting but it shall not be necessary in such notice to specify the purpose for
which the meeting was originally called. At such adjourned meeting the Holders
present or represented by proxy shall constitute a quorum and may transact the
business for which the meeting was originally called and a resolution passed
thereat by not less than 66 2/3% of the votes cast at such adjourned meeting
shall be effective notwithstanding that the holders of a majority of the
outstanding 1983 R & D Series Shares are not present or represented by proxy and
the conduct thereof shall be from time to time prescribed by the by-laws of the
Corporation with respect to meetings of shareholders. On every poll taken at
every such meeting or adjourned meeting every Holder shall be entitled to one
vote in respect of each 1983 R & D Series Share held by him.

                                      -30-
<PAGE>

8.3 Any notice required or permitted to be given to a Holder shall be mailed by
letter, postage prepaid, or delivered to such Holder at his address as it
appears on the records of the Corporation or in the event of the address of any
such shareholder not so appearing then to the last known address of such
shareholder. The accidental failure to give notice to one or more of such
Holders shall not affect the validity of any action requiring the giving of
notice by the Corporation. Any notice given as aforesaid shall be deemed to be
given on the date upon which it is mailed or delivered.

                                      -31-
<PAGE>

PART 3 - $1.50 SERIES A CUMULATIVE CONVERTIBLE REDEEMABLE RETRACTABLE PREFERRED
-------------------------------------------------------------------------------
SHARES
------

A. The directors of the Corporation hereby fix the number of shares for the
second series of the Preferred Shares at 871,581 shares;

B. The directors of the Corporation hereby determine that the designation of the
second series of the Preferred Shares is $1.50 Series A Cumulative Convertible
Redeemable Retractable Preferred Shares (hereinafter called the "Series A
Preferred Shares") and that the rights, privileges, restrictions and conditions
attaching to the Series A Preferred Shares (in addition to the rights,
privileges, conditions, restrictions, limitations and prohibitions attaching to
the Preferred Shares as a class) shall be as follows:

                                    ARTICLE 1
                                 Interpretation

1.1 Definitions
    -----------

"Business Day" means any day other than a Saturday, Sunday or statutory holiday;

"cash dividend paid in the ordinary course" means cash dividends declared and
payable on the Common Shares in any financial year of the Corporation to the
extent that such dividends do not exceed the greater of (i) 100% of the
consolidated net income of the Corporation, before extraordinary items, for the
immediately preceding financial year of the Corporation as determined by the
auditors of the Corporation in accordance with generally accepted accounting
principles and (ii) 5% of the average value at which the Common Shares were
carried in the capital stock account of the Corporation in the year;

"close of business" means the normal closing hour of the principal office in the
City of Toronto of the transfer agent and registrar;

"Common Shares" means the Common Shares of the Corporation;

"Consolidated Net Tangible Assets" at any date means the total of the amount of
assets of the Corporation and its subsidiaries shown on the most recent annual
audited consolidated financial statements of the Corporation and its
subsidiaries or, if more recent, unaudited quarterly consolidated financial
statements of the Corporation and its subsidiaries, less all amounts shown
thereon or reflected in such total amount of assets for goodwill, patents,
amortization or deferral of debt discounts or debt or share issuance expenses,
capitalized development or research and development expenditures, deferred
income taxes, deferred foreign exchange gains or losses and other items of an
intangible nature, and after deducting all liabilities of the Corporation and
its subsidiaries other than contingent liabilities, as shown on such statements
arrived at on a consolidated basis in accordance with generally accepted
accounting principles in Canada, or determined in accordance with the guidelines
of the Canadian Institute of Chartered Accountants in effect at the time such
financial statements are published; provided that any changes in generally
accepted accounting principles in Canada made subsequent to February 25, 1983
will be applied prospectively for the purpose of calculating Consolidated Net
Tangible Assets;

                                      -32-
<PAGE>

"Conversion Price" at any date means $25.00 per share (being at a rate of 1.0
Common Shares per Series A Preferred Share) unless such price shall have been
adjusted in accordance with the provisions of Section 3.4 in which event it
shall mean the adjusted price in effect at such time;

"Current Market Price per Common Share" at any date means the weighted average
closing price per Common Share at which the Common Shares have traded on The
Toronto Stock Exchange during 20 consecutive trading days (on each of which at
least 500 Common Shares were traded in board lots) ending on the fifth trading
day before such date;

"Date of Conversion" has the meaning given to that expression in Section 3.2;

"Directors" means the board of directors of the Corporation and reference
without more to action by the Directors shall mean action by the Directors as a
board or by any authorized committee thereof;

"Expiry Date" means November 1, 1989;

"Expiry Time" means 4:00 o'clock in the afternoon (Ottawa time) on the Expiry
Date;

"herein", "hereto", "hereunder", "hereof", "hereby" and similar expressions mean
or refer to these Series A Preferred Share provisions and not to any particular
Section, subsection, subdivision or portion hereof, and the expressions
"Article", "Section" and "subsection", followed by a number and/or a letter mean
and refer to the specified Article, Section or subsection hereof;

"Holder" means the registered holder of any Series A Preferred Shares;

"Notice of Redemption" means a notice in writing given, as hereinafter provided,
by the Corporation to the holders of Series A Preferred Shares setting forth the
Redemption Price, the Current Market Price per Common Share, the Conversion
Price (each as at the date of such notice), the place at which redemption is to
take place, and, if part only of the Series A Preferred Shares is to be
redeemed, the number thereof to be redeemed;

"Redemption Date" means the date fixed by the Directors for redemption of Series
A Preferred Shares set forth in the Notice of Redemption;

"Redemption Price" means $25.00 per Series A Preferred Share plus accrued and
unpaid dividends to and including the relevant Redemption Date;

"Retraction Date" means November 1, 1989 in the case of a redemption required
pursuant to Section 7.1(a), and the 10th day following receipt of a Retraction
Notice in the case of a redemption required pursuant to Section 7.1(b);

"Retraction Event" means the occurrence of any one or more of the following:

(a) the Corporation is in arrears in the payment of cumulative preferential
dividends on the Series A Preferred Shares to the extent of four quarterly
instalments of preferential dividends whether or not there are any monies of the
Corporation properly applicable to the payment of dividends and whether or not
declared;

                                      -33-
<PAGE>

(b) any breach of, failure to observe or perform, or default under, any
provision of Sections 6.1 and 6.2 hereof; or

(c) the failure by the Corporation to pay the Retraction Price on the Retraction
Date to a Holder who has exercised a retraction privilege set forth in Section
7.1;

"Retraction Price" means $25.00 per Series A Preferred Share plus accrued and
unpaid dividends to and including the relevant Retraction Date;

"Shareholders' Equity" means, at any time, the aggregate of retained earnings or
deficit and contributed surplus of the Corporation and its subsidiaries and the
amount paid-up on issued and outstanding shares of the Corporation, as set forth
from time to time on the Corporation's most-recent annual audited consolidated
financial statements, or, if more recent, its unaudited quarterly consolidated
financial statements, arrived at on a consolidated basis in accordance with
generally accepted accounting principles in Canada, as determined in accordance
with the guidelines of the Canadian Institute of Chartered Accountants in effect
at the time such determination is made, less amounts that are deducted or
excluded from the assets of the Corporation and its subsidiaries as shown or
reflected in such financial statements in determining Consolidated Net Tangible
Assets; provided, however, that any changes in generally accepted accounting
principles made subsequent to February 25, 1983 will be applied prospectively
for the purpose of calculating "Shareholders' Equity"; and

"transfer agent and registrar" means the person or persons from time to time
appointed by the Directors as the transfer agent and registrar in Canada for the
Series A Preferred Shares.

1.2 Words importing the singular number only include the plural and vice versa
and words importing any gender include all genders.

1.3 All dollar amounts referred to herein shall be in lawful money of Canada.

1.4 The division of these Series A Preferred Share provisions into Articles,
Sections, subsections, clauses, subclauses or other subdivisions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation hereof.

1.5 In the event that any date upon which any dividends on the Series A
Preferred Shares are payable by the Corporation, or upon or by which any other
action is required to be taken by the Corporation hereunder is not a Business
Day, then such dividend shall be payable or such other action shall be required
to be taken on or by the next succeeding day which is a Business Day.

                                    ARTICLE 2
                                    Dividends

2.1 The Holders shall be entitled to receive, and, subject to Section 2.3, the
Corporation shall pay, as and when declared by the Directors out of moneys of
the Corporation available for the payment of dividends, fixed cumulative
preferential cash dividends at the rate of $1.50 per Series A Preferred Share
per annum accruing in the case of each such share from the date of issue and
payable in equal quarterly instalments of $0.375 on the last day of March, June,
September and December in each year with the first such dividend to be paid, if
declared, on the first such payment date after the date of issue. Cheques drawn
on a Canadian chartered bank and payable at par at any branch in Canada of such
bank shall be issued in respect of such dividends to the

                                      -34-
<PAGE>

Holders entitled thereto. If on any dividend payment date dividends payable on
such date are not paid in full on all the Series A Preferred Shares then issued
and outstanding, such dividends or the unpaid part thereof shall be paid on a
subsequent date or dates as determined by the Directors. The Holders shall not
be entitled to any dividends other than or in excess of the cash dividends
herein provided for. A dividend which is represented by a cheque which has not
been presented for payment within six years after it was issued or that
otherwise remains unclaimed for a period of six years from the date it was
declared to be payable and set apart for payment shall be forfeited to the
Corporation.

2.2 The amount of the dividend for any period which is less than a full calendar
quarter with respect to any Series A Preferred Share:

(a) which is issued, redeemed, purchased or converted; or

(b) where assets of the Corporation are distributed to the Holders pursuant to
the conditions in that respect attaching to the Preferred Shares as a class;

shall be equal to the amount rounded to the nearest 1/100th of one cent
calculated by multiplying $0.375 by a fraction of which the numerator is the
number of days in such quarter such share has been outstanding (including the
dividend payment date at the beginning of such quarter if such share was
outstanding on that date and excluding the dividend payment date at the end of
such quarter if such share was outstanding on that date or the date on which
such dividend became payable, as the case may be) and the denominator is the
number of days in such quarter (including the dividend payment date at the
beginning thereof and excluding the dividend payment date at the end thereof).

2.3 Dividend payments shall be adjusted to avoid payments of a fraction of a
cent.

2.4 (1) In lieu of the dividends payable in cash pursuant to Section 2.1 and
subject to the provisions of this Section and Section 6.3, the Corporation shall
be entitled, at its election from time to time to issue out of authorized but
unissued Common Shares, on the dividend payment dates referred to in Section
2.1, Common Shares at the current market value equal in aggregate to the amount
of the cash dividend otherwise payable.

(2) In lieu of the dividends payable in cash pursuant to Section 2.1, Holders
who are resident in Canada and such other jurisdictions, if any, as may be
determined by the Directors shall be entitled to elect to receive from time to
time, and if such election is made the Corporation shall issue out of authorized
but unissued Common Shares, on the dividend payment dates referred to in Section
2.1, fixed cumulative preferential dividends in the form of Common Shares at the
current market value equal in aggregate to the amount of the cash dividend
otherwise payable. The election to receive stock dividends in lieu of cash
dividends provided for in this subsection may be made by a Holder delivering to
the transfer agent and registrar an "Election to Receive Stock Dividends" in
such form as shall be prescribed by the Directors (copies of which form will be
available at the principal transfer officers of the transfer agent and
registrar), duly completed and signed by the Series A Holder and shall specify
the number of Series A Preferred Shares in respect of which such election is
made. All questions as to the form and validity of any "Election to Receive
Stock Dividends" will be determined by the transfer agent and registrar. If an
"Election to Receive Stock Dividends" has been received by the transfer agent
and registrar from a Holder, on any subsequent record date ("record date" in
respect of any dividend declared by the

                                      -35-
<PAGE>

Directors means the date fixed by the Directors for the purpose of determining
Holders entitled to receive payment of such dividend) for dividends payable
pursuant to Section 2.1, such Holder shall be deemed to have elected and shall
be entitled to receive fixed cumulative preferential dividends in the form of
Common Shares on such Series A Preferred Shares in lieu of the cash dividends
payable pursuant to Section 2.1 on such Series A Preferred Shares until such
Holder shall deliver to the transfer agent and registrar a "Revocation of
Election to Receive Stock Dividends" in such form as shall be prescribed by the
Directors (copies of which form will be available at the aforesaid offices of
the transfer agent and registrar) duly completed and signed by the Holder. A
Holder who has delivered a "Revocation of Election to Receive Stock Dividends"
shall, on any subsequent record date for dividends payable pursuant to Section
2.1, be entitled to receive, subject to the provisions of Section 2.4(1), the
cash dividends payable pursuant to Section 2.1 on his Series A Preferred Shares
until such Holder shall again elect to receive stock dividends in lieu of such
cash dividends pursuant to this subsection, in which event all of the provisions
of this subsection shall again apply.

Notwithstanding the foregoing, the Company shall not be obligated to issue any
fixed cumulative preferential dividends in the form of Common Shares in lieu of
the cash dividends payable pursuant to Section 2.1 if and to the extent that
such issuance would be contrary to any provision contained in any instrument
evidencing indebtedness of the Corporation or to any applicable law.

(3) All Common Shares issued as stock dividends pursuant to this Section shall
be and be deemed to be fully paid and non-assessable and issuance thereof to the
Holders entitled thereto shall satisfy such dividends.

(4) The manner of determination of the current market value of a Common Share
shall be prescribed by resolution of the Directors. The current market value of
a Common Share for the purpose of calculating the number of Common Shares to be
issued as stock dividends on any dividend payment date shall be determined as
being equal to the Current Market Price per Common Share as at the date that is
five Business Days immediately preceding the dividend payment date (excluding
such dividend payment date) for the payment of such dividends.

(5) In the event that a Holder shall be entitled to a fraction of a Common Share
as a stock dividend, the Company shall in lieu thereof pay the cash equivalent
for such fraction.

2.5 The Holders as of the record date for any dividend declared to be payable on
the Series A Preferred Shares shall be entitled to such dividend notwithstanding
that such share is converted after such record date and before the payment date
of such dividend and the registered holder of any share issued upon conversion
of a Series A Preferred Share shall be entitled to any dividend declared to be
payable to holders of such shares of record on any date after the Date of
Conversion. Subject as aforesaid, upon the conversion of any Series A Preferred
Share the Corporation shall make no payment or adjustment on account of any
dividends on the Series A Preferred Share so converted or on account of any
dividends on the Common Shares issuable upon such conversion.

                                      -36-
<PAGE>

                                    ARTICLE 3
                          Conversion into Common Shares

3.1 Each Series A Preferred Share shall be convertible at any time up to but not
after the close of business on the Expiry Date into fully paid and
non-assessable Common Shares on the basis of the quotient obtained by dividing
$25.00 by the Conversion Price.

3.2 In order to exercise the conversion right, a Holder shall present and
surrender to the transfer agent and registrar for the Common Shares the
respective certificates representing such Series A Preferred Shares together
with written notice of conversion (which shall be and be deemed to be
irrevocable) signed by such holder stating that he elects to convert such Series
A Preferred Shares at the Conversion Price. Such notice of conversion shall also
state the name or names (with addresses) in which the certificate or
certificates for Common Shares which shall be issuable on such conversion shall
be issued. If any of the Common Shares into which such Series A Preferred Shares
are to be converted are to be issued to a person or persons other than the
Holder of such Series A Preferred Shares, the signature of such Holder on such
notice of conversion shall be guaranteed in a manner satisfactory to the
transfer agent and registrar and such notice of conversion shall be accompanied
by payment to the transfer agent and registrar of any transfer tax which may be
payable by reason thereof. The date of receipt by the transfer agent and
registrar of certificates representing such Series A Preferred Shares and such
notice of conversion is herein referred to as the "Date of Conversion" of such
Series A Preferred Shares.

As promptly as practicable after the Date of Conversion, the Corporation shall
issue or cause to be issued and deliver or cause to be delivered to the Holder
who has exercised the conversion right of any Series A Preferred Shares, or on
his written order, a certificate or certificates in the name or names of the
person or persons specified in the applicable notice of conversion for the
number of Common Shares deliverable upon the conversion of such Series A
Preferred Shares and provision shall be made in respect of any fraction of a
share as provided in Section 3.3. Such conversion shall be deemed to have been
effected immediately prior to the close of business on the Date of Conversion
and at such time the rights of the holder of such Series A Preferred Shares as
such holder shall, subject to the provisions of Section 3.4, cease and the
person or persons in whose name or names any certificate or certificates for
Common Shares shall be deliverable upon such conversion shall be deemed to have
thereupon become the holder or holders of record of the Common Shares
represented thereby; provided, however, that no exercise of the conversion right
on any date when the share transfer registers for Common Shares of the
Corporation shall be closed shall be effective to constitute the person or
persons entitled to receive the Common Shares upon such conversion as the holder
or holders of record of such Common Shares on such date, but such surrender
shall be effective to constitute the person or persons entitled to receive such
Common Shares as the holder or holders of record thereof for all purposes at the
close of business on the next succeeding day on which such share transfer
registers are open and such conversion shall be at the Conversion Price in
effect at the close of business on such next succeeding day.

Upon surrender to the transfer agent and registrar of any certificate
representing more than the number of Series A Preferred Shares which are to be
converted, the holder thereof shall be entitled to receive, without expense to
such holder, one or more new certificates for the number of unconverted Series A
Preferred Shares represented by the certificate surrendered.

                                      -37-
<PAGE>

3.3 Notwithstanding anything herein contained, the Corporation shall in no case
be required to issue a fraction of a Common Share upon the conversion of any
Series A Preferred Share. If any fractional interest in a Common Share would,
except for the provisions of this Section, be deliverable upon the conversion of
any Series A Preferred Share, the Corporation shall issue or cause to be issued
to the holder of such surrendered Series A Preferred Share a non-voting and
non-dividend bearing scrip certificate or certificates transferable by delivery
entitling the holder thereof and of other similar certificates aggregating one
full Common Share, upon surrender of such certificates for consolidation at such
place in Canada as may be designated therein, to obtain from the Corporation a
full Common Share and to receive a share certificate therefor, as well as a
further scrip certificate representing the excess, if any, over one full Common
Share of the scrip certificates surrendered for consolidation. Such scrip
certificates shall be in such form and shall be subject to such terms and
conditions as the Corporation may determine and shall provide that the same
shall be null and void on and after a date to be fixed by the directors of the
Corporation, but no such date shall be less than one year following the date of
issue of the scrip certificate concerned. In lieu of issuing scrip certificates
as aforesaid, the Corporation may adjust any fractional interest of a Common
Share by the payment by cheque of an amount equal to the then current market
value of such fractional interest computed (to the nearest cent) on the basis of
the last board lot sale price on The Toronto Stock Exchange, on the trading day
next preceding the Conversion Date, or, if the Common Shares are not listed on
The Toronto Stock Exchange, on such stock exchange on which the Common Shares
are listed as may be selected for such purpose by the Directors. If the Common
Shares are not listed on any stock exchange, the current market value of such
fractional interest shall be determined by the Directors.

3.4 The Conversion Price and the number of Common Shares into which each Series
A Preferred Share may be converted shall be subject to adjustment from time to
time as follows:

(1) If and whenever at any time prior to the Expiry Time the Corporation shall
(i) issue Common Shares to the holders of all or substantially all of its Common
Shares by way of a stock dividend (other than the issue of Common Shares as a
stock dividend in lieu of a cash dividend paid in the ordinary course), (ii)
subdivide its outstanding Common Shares into a greater number of shares, or
(iii) consolidate its outstanding Common Shares into a lesser number of shares,
the Conversion Price shall be proportionately adjusted so that a Holder who has
not exercised the conversion right prior to the record date for such dividend or
the effective date of such subdivision or consolidation shall be entitled to
receive and shall accept upon the exercise of such right at any time on or after
such record date or effective date, in lieu of (or, in the case of a dividend or
distribution referred to in clause (i) above, in addition to) the number of
Common Shares which he is otherwise entitled to receive at the time he exercises
the conversion right, the aggregate number of Common Shares that such Holder
would have been entitled to receive as a result of such dividend, distribution,
subdivision or consolidation if, on the record date or effective date thereof,
he had been the registered holder of the number of Common Shares that he is
otherwise entitled to receive at the time he exercises the conversion right. Any
dividend or distribution on the Common Shares of the Corporation in Common
Shares shall be deemed to have been issued or made immediately prior to the time
of the record date for such dividend or distribution for purposes of calculating
the number of outstanding Common Shares under subsections (2) and (3) below.
Such adjustments shall be made successively whenever any event listed above
shall occur.

(2) If and whenever at any time prior to the Expiry Time the Corporation shall
fix a record date for the issuance of options, rights or warrants to the holders
of all or substantially all of its

                                      -38-
<PAGE>

Common Shares entitling them, for a period expiring not more than 75 days after
such record date, to subscribe for or purchase Common Shares (or securities
convertible or exchangeable into Common Shares, other than Series A Preferred
Shares) at a price per share (or having a conversion or exchange price per
share) which is less than 95% of the Current Market Price per Common Share on
such record date, the Conversion Price shall be and be deemed to be adjusted
immediately after the close of business on such record date so that it shall
equal the price determined by multiplying the Conversion Price in effect on such
record date by a fraction, of which the numerator shall be the total number of
Common Shares outstanding at the close of business on such record date plus a
number of Common Shares equal to the number arrived at by dividing the aggregate
price of the total number of additional Common Shares so offered (or the
aggregate conversion or exchange price of the convertible or exchangeable
securities so offered) by such Current Market Price per Common Share and of
which the denominator shall be the total number of Common Shares outstanding at
the close of business on such record date plus the total number of additional
Common Shares offered for subscription or purchase (or into which the
convertible or exchangeable securities so offered are convertible or
exchangeable, as the case may be). Common Shares owned by or held for the
account of the Corporation shall be deemed not to be outstanding for the purpose
of any such computation. Such adjustment shall be made successively whenever
such record date is fixed. To the extent that such options, rights or warrants
are not so issued or such option, rights or warrants are not exercised prior to
the expiration thereof, the Conversion Price shall thereupon be readjusted in
accordance with the foregoing determination to the Conversion Price which would
then be in effect based upon the number of Common Shares (or securities
convertible or exchangeable into Common Shares) actually delivered upon the
exercise of such options, rights or warrants.

(3) If and whenever at any time prior to the Expiry Time the Corporation shall
fix a record date for the making of a distribution to the holders of all or
substantially all of its Common Shares of (i) shares of any class other than
Common Shares whether of the Corporation or any other corporation (other than
shares distributed to the holders of Common Shares as a stock dividend in lieu
of a cash dividend paid in the ordinary course) or (ii) evidences of its
indebtedness or (iii) assets (other than as a cash dividend paid in the ordinary
course) or (iv) of options, rights or warrants (excluding those referred to in
subsection (2) above), then in each such case the Conversion Price shall be and
be deemed to be adjusted immediately after the close of business on such record
date so that it shall equal the price determined by multiplying the Conversion
Price in effect on such record date by a fraction, of which the numerator shall
be the total number of Common Shares outstanding at the close of business on
such record date multiplied by the Current Market Price per Common Share on such
record date, less the fair market value (as determined by the board of
directors, whose determination shall be conclusive) of said shares or evidences
of indebtedness or assets or options, rights or warrants so distributed, and of
which the denominator shall be the total number of Common Shares outstanding at
the close of business on such record date multiplied by such Current Market
Price per Common Share. Common Shares owned by or held for the account of the
Corporation shall be deemed not to be outstanding for the purpose of any such
computation. Such adjustment shall be made successively whenever such a record
date is fixed. To the extent that such distribution is not so made, the
Conversion Price shall thereupon be readjusted in accordance with the foregoing
determination to the Conversion Price which would then be in effect based upon
the fair market value of said shares or evidences of indebtedness or assets or
options, rights or warrants actually distributed.

(4) No adjustments of the Conversion Price shall be made pursuant to clause (i)
of subsection (1) or pursuant to subsections (2) and (3) above if the Holders
are permitted to participate in such

                                      -39-
<PAGE>

dividend or distribution on the Common Shares in Common Shares or in the issue
of such options, rights, warrants or such distribution, as the case may be, as
though and to the same effect as if they had converted their Series A Preferred
Shares into Common Shares prior to the record date for such dividend or
distribution or the issue of such options, rights or warrants or such
distribution, as the case may be.

(5) In any case in which this Section shall require that an adjustment shall
become effective immediately after a record date for an event, the Corporation
may defer until the occurrence of such event (i) issuing to the Holder of any
Series A Preferred Shares converted after such record date and before the
occurrence of such event the additional Common Shares issuable upon such
conversion by reason of the adjustment required by such event over and above the
Common Shares issuable upon such conversion before giving effect to such
adjustment and (ii) delivering to such holder a scrip certificate or
certificates in lieu of any fractional interest to which he is entitled pursuant
to Section 3.3; provided, however, that the Corporation shall deliver to such
holder an appropriate instrument evidencing such holder's rights to receive such
additional Common Shares and scrip certificate or certificates, upon the
occurrence of the event requiring such adjustment.

(6) No adjustment in the Conversion Price shall be required unless such
adjustment would require an increase or decrease of at least one percent in such
price; provided, however, that any adjustments which by reason of this
subsection (6) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment.

3.5 The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment in the Conversion Price as above
provided, lodge with the transfer agent and registrar, a certificate of the
chief financial officer specifying the nature of the event requiring the
adjustment and the amount of the adjustment thereby necessitated and setting
forth in reasonable detail the method of calculation and the facts upon which
such calculation is based, which certificate and the amount of the adjustment
therein specified shall be verified by an opinion of the Corporation's auditors
and, when so verified shall be conclusive and binding on all parties in
interest. The Corporation shall forthwith give notice of such adjustment to each
Holder, which notice shall specify the Conversion Price after such adjustment
and the event requiring such adjustment.

3.6 In the event that the Corporation shall determine to:

(1) declare on its Common Shares any cash dividend per share which when added to
the sum of the last four cash dividends per share paid on its Common Shares
would exceed the sum of such last four cash dividends per share by more than
50%;

(2) declare on its Common Shares any dividends payable in shares of the
Corporation (other than a stock dividend in lieu of a cash dividend paid in the
ordinary course) or make any other distribution on its Common Shares (other than
a cash dividend);

(3) offer for subscription pro rata to the holders of all or substantially all
of its Common Shares any additional securities or shares of any class
convertible into or exchangeable for Common Shares or issue any other options,
rights or warrants to all or substantially all of such holders;

                                      -40-
<PAGE>

(4) effect a reclassification or change of the Common Shares of the nature
referred to in Section 3.7 or an amalgamation or merger of the Corporation with
or into any other corporation or a sale, transfer or other disposition of all or
substantially all of the assets of the Corporation; or

(5) proceed with a voluntary or involuntary dissolution, liquidation or
winding-up of the Corporation;

then, in each such case, the Corporation shall give notice to each Holder of the
action proposed to be taken and the date on which (a) the books of the
Corporation shall close or a record shall be taken for such dividend,
distribution, subscription rights or other options, rights or warrants, or (b)
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition, dissolution, liquidation or winding-up shall take place, as the
case may be, provided that the Corporation shall only be required to specify in
such notice such particulars of such action as shall have been fixed and
determined at the date on which such notice is given. Such notice shall also
specify the date as of which the holders of Common Shares of record shall
participate in such dividend, distribution, subscription rights or other
options, rights or warrants, or shall be entitled to exchange their Common
Shares for securities or other property deliverable upon such reclassification,
change, amalgamation, merger, sale, transfer or other disposition, dissolution,
liquidation or winding-up as the case may be. Such written notice shall be
given, with respect to the actions described in subsections (1), (2) and (3)
above, not less than 15 days and, with respect to the actions described in
subsections (4) and (5) above, not less than 30 days, in each case prior to the
record date or the date on which the Corporation's transfer books are to be
closed with respect thereto.

3.7 In the event of any reclassification of or change in the Common Shares
(other than a change as a result of a subdivision or consolidation), or in the
event of any amalgamation of the Corporation with, or merger of the Corporation
into, any other corporation (other than an amalgamation or merger in which the
Corporation is the continuing corporation and which does not result in any
reclassification or change of the Common Shares), or in the event of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation, the Holder of each Series A Preferred Share then outstanding shall
be entitled to receive and shall accept upon the conversion of a Series A
Preferred Share at any time on the effective date or thereafter (until the
expiration of the conversion right of such Holder), in lieu of the Common Shares
which he is otherwise entitled to receive at the time he exercises the
conversion right, the kind and amount of shares and other securities and
property that such Holder would have been entitled to receive as a result of
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition if, on the effective date thereof, he had been the registered holder
of the number of Common Shares that he is otherwise entitled to receive at the
time he exercises the conversion right, subject to such adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article. The provisions of this Section 3.7 shall similarly apply to
successive reclassifications, changes, amalgamations, mergers, sales, transfers
or other dispositions.

3.8 All Series A Preferred Shares surrendered upon the exercise of the
conversion right shall be cancelled by the transfer agent and registrar and the
number thereof shall not be restored to the status of authorized but unissued
shares.

3.9 As a condition precedent to the taking of any action which would require an
adjustment to the Conversion Price, the Corporation shall take any corporate
action which may, in the opinion

                                      -41-
<PAGE>

of counsel, be necessary in order that the Corporation shall have unissued and
reserved the number of authorized Common Shares to which the Holders are
entitled on the full exercise of their conversion rights in accordance with the
provisions hereof.

3.10 If any Common Shares reserved or to be reserved for the purpose of
conversion of the Series A Preferred Shares hereunder, require registration with
or approval of any governmental authority under any Canadian or Provincial law
before such shares may be validly issued upon conversion, the Corporation will
take such action as may be necessary to secure such registration or approval, as
the case may be.

                                    ARTICLE 4
                             Redemption and Purchase

4.1 Subject to the provisions of Section 4.2, the Corporation may not redeem any
Series A Preferred Shares prior to the Expiry Date. Thereafter, subject to the
provisions of any applicable law and to the provision of the conditions to the
Preferred Shares as a class relating to liquidation, dissolution, winding up and
distribution of assets, the Corporation may, at its option, redeem the Series A
Preferred Shares in whole at any time or in part from time to time by lot or in
such manner as the Directors shall determine on payment for each such share to
be redeemed of the Redemption Price.

4.2 If the Current Market Price per Common Share on the date Notice of
Redemption is given is greater than 125% of the Conversion Price, the
Corporation may, at its option, after May 1, 1986 redeem the Series A Preferred
Shares in whole or in part from time to time by lot in such manner as the
directors shall determine on payment for each such share to be redeemed of the
Redemption Price. The Corporation shall on such date file with the transfer
agent and registrar a certificate under the hand of its chief financial officer
certifying as to the Current Market Price per Common Share and the Conversion
Price then in effect.

4.3 A Notice of Redemption shall be given by the Corporation not less than 30
days prior to the date fixed for redemption to each Holder of Series A Preferred
Shares to be redeemed. Accidental failure or omission to give such notice to one
or more of such Holders shall not affect the validity of such redemption. On and
after the Redemption Date, the Corporation shall pay or cause to be paid to or
to the order of the Holders of the Series A Preferred Shares to be redeemed the
Redemption Price on presentation and surrender at the place of redemption of the
respective certificates representing such shares. Such payment shall be made by
cheque drawn on a Canadian chartered bank and payable at par at any branch in
Canada of such bank. Such shares in respect of which the Redemption Price has
been paid as aforesaid shall thereupon be redeemed. If less than all the Series
A Preferred Shares represented by any certificate shall be redeemed, a new
certificate for the balance shall be issued. From and after the Redemption Date,
the Holders of the Series A Preferred Shares called for redemption shall cease
to be entitled to dividends or to exercise any of the rights of Holders in
respect thereof unless payment of the Redemption Price shall not be made in
accordance with the foregoing provisions, in which case the rights of the
Holders shall remain unimpaired. The Corporation shall have the right at any
time after mailing a Notice of Redemption to deposit the Redemption Price of the
shares thereby called for redemption, or such part thereof as at the time of
deposit has not been claimed by the shareholders entitled thereto, in any
Canadian chartered bank or trust company in Canada specified in the Notice of
Redemption or in a subsequent notice to the Holders in respect of which the
deposit is made, in a special account for the Holders of such shares, and upon
such

                                      -42-
<PAGE>

deposit being made or upon the Redemption Date, whichever is later, the Series A
Preferred Shares in respect of which such deposit shall have been made shall be
deemed to be redeemed and the rights of each Holder shall be limited to
receiving, without interest, his proportionate part of the Redemption Price so
deposited upon presentation and surrender of the certificates representing his
shares so redeemed. Any interest on such deposit shall belong to the
Corporation.

4.4 Subject to the provisions of any applicable law and to Article 5, the
Corporation may, in addition to its right to redeem Series A Preferred Shares as
provided above, purchase at any time all or from time to time any number of the
outstanding Series A Preferred Shares in the open market or pursuant to tenders
received by the Corporation upon invitation for tenders addressed to all Holders
at the lowest price or prices at which in the opinion of the Directors such
shares are obtainable but not exceeding the Redemption Price plus reasonable
costs of purchase. If upon any invitation for tenders, the Corporation receives
tenders for Series A Preferred Shares at the same price in an aggregate number
greater than the number for which the Corporation is prepared to accept tenders,
the shares to be purchased shall be selected from the shares offered at such
price as nearly as may be pro rata, disregarding fractions, according to the
number of Series A Preferred Shares offered in each such tender, in such manner
as the Directors in their sole discretion shall determine.

                                    ARTICLE 5
                                  Purchase Fund

5.1 The Corporation shall make all reasonable efforts to purchase in each
calendar quarter, commencing with the calendar quarter beginning on January 1,
1990, 1% of the Series A Preferred Shares outstanding at the close of business
on the Expiry Date at a price not exceeding the Redemption Price plus reasonable
costs of purchase.

5.2 To the extent that, notwithstanding the making of all reasonable efforts,
the Corporation is unable to purchase such number of Series A Preferred Shares
in any calendar quarter, such purchase obligation shall carry forward to the
succeeding calendar quarters in the same calendar year and to the extent not
satisfied at the end of such calendar year shall thereupon be extinguished. The
Corporation shall not be required to purchase any Series A Preferred Shares if
and so long as such purchase would be contrary to any applicable law or to the
provisions of Article 6 hereof. Series A Preferred Shares redeemed or purchased
by the Corporation pursuant to Article 4 may be applied by the Corporation in
the year of redemption as a credit against its purchase obligations in that
year.

                                    ARTICLE 6
            Restrictions on Dividends, Issue and Retirement of Shares

6.1 So long as any of the Series A Preferred Shares are outstanding, the
Corporation shall not, without the approval of the holders of 66 2/3% of the
Series A Preferred Shares:

(a) declare, pay or set apart for payment any dividends (other than stock
dividends in shares of the Corporation ranking junior to the Series A Preferred
Shares) on any shares of the Corporation ranking junior to the Series A
Preferred Shares;

                                      -43-
<PAGE>

(b) redeem, purchase or make any capital distribution on or in respect of any
shares ranking junior to the Series A Preferred Shares (except out of the net
cash proceeds of a substantially concurrent issue of shares of the Corporation
ranking junior to the Series A Preferred Shares);

(c) redeem, purchase or otherwise retire for value less than all of the Series A
Preferred Shares; or

(d) except pursuant to a purchase obligation or in connection with the exercise
of a retraction privilege attaching to shares of the Corporation heretofore or
hereafter issued, redeem, purchase or make any capital distribution on or in
respect of any other shares of the Corporation ranking on a parity with the
Series A Preferred Shares in respect of the payment of dividends and the
distribution of assets in the event of the liquidation, dissolution or
winding-up of the Corporation, whether voluntary or involuntary, or in the event
of any other distribution of assets of the Corporation among its shareholders
for the purpose of winding-up its affairs;

unless in each such case (i) all dividends on the outstanding Series A Preferred
Shares and on all other shares ranking on a parity with or in priority to the
Series A Preferred Shares accrued up to and including the dividend payable on
the last preceding date for payment of dividends on the Series A Preferred
Shares and on all other shares ranking on a party with or in priority to the
Series A Preferred Shares shall have been declared and paid or set apart for
payment, (ii) the Corporation is not in default in payment of the Retraction
Price to a Holder who has exercised the retraction privilege pursuant to Article
7, (iii) the Corporation has not received a Retraction Notice pursuant to
Section 7.1(b) in respect of which the Retraction Price has not then been paid,
and (iv) immediately after such action, Shareholders' Equity is not less than
$225,000,000.

6.2 So long as any of the Series A Preferred Shares are outstanding the
Corporation will not, except with the approval of the holders of 66 2/3% of the
Series A Preferred Shares, create or issue any shares ranking prior to or on a
parity with the Series A Preferred Shares unless immediately after such action,
Consolidated Net Tangible Assets are at least equal to two times the amount of
the stated capital of the Series A Preferred Shares and all shares ranking prior
to or on a parity with the Series A Preferred Shares.

6.3 Notwithstanding Section 2.4, the Corporation shall not be entitled to issue
Common Shares in lieu of dividends payable in cash pursuant to Section 2.4
unless such Common Shares to be issued under such section are, at the time of
issue thereof, (i) listed for trading on The Toronto Stock Exchange and (ii)
tradeable by a Holder on such stock exchange free from any registration or
qualification requirement or resale restriction (other than a resale restriction
affecting a Holder by reason of the number of Series A Preferred Shares and
other securities of the Corporation held by such holder or such holder being in
a special relationship with the Corporation).

                                    ARTICLE 7
                                   Retraction

7.1 Each Holder shall be entitled to elect that the Corporation redeem, at the
Retraction Price, all of the Series A Preferred Shares held by such Holder:

(a) on the Expiry Date; and

(b) on the 10th day following receipt by the Corporation of a written notice
(hereinafter called a "Retraction Notice") from that holder certifying that a
Retraction Event occurred.

                                      -44-
<PAGE>

7.2 The Corporation shall, not more than 60 days and not less than 30 days prior
to the Expiry Date, give written notice of the right provided for in paragraph
(a) of Section 7.1 hereof to the Holders. Such notice shall set out the
Retraction Price and particulars of the procedure to be followed by any Holder
wishing to exercise such right, including the time, place and manner of exercise
of such right as hereinafter set out. A Holder who elects to have the
Corporation redeem all or any part of the Series A Preferred Shares registered
in the name of such Holder must, prior to the close of business on the Expiry
Date, deposit the certificate or certificates representing the Series A
Preferred Shares which such Holder desires to have redeemed with transfer agent
and registrar and must, at the time of such deposit, have signified his election
and the number of shares which he desires to have redeemed by (i) completing the
Holder's election in the panel, if any, contained on the certificates for Series
A Preferred Shares or (ii) completing and depositing concurrently with the
deposit of certificates referred to above a notice of election in the form
provided for that purpose by the Corporation.

7.3 Subject to Section 7.4 hereof, the Corporation shall redeem on the
Retraction Date the number of Series A Preferred Shares for which certificates
have been deposited and with respect to which the Holders have signified their
election as aforesaid by paying to the Holders entitled thereto the Retraction
Price. Such payment shall be made by cheque payable at par at any branch in
Canada of the Corporation's bankers. The Series A Preferred Shares in respect of
which such payment is made shall be deemed to have been redeemed on the
Retraction Date and the holders thereof shall cease to be entitled to dividends
or to exercise any of the rights of holders thereof, unless payment of the
Retraction Price is not made as aforesaid, in which event the rights of the
holders of such shares shall remain unimpaired.

7.4 If the redemption by the Corporation of all Series A Preferred Shares
required to be redeemed on the Retraction Date would be contrary to applicable
law, the Corporation shall be obligated to redeem only the maximum number of
Series A Preferred Shares (rounded to the next lower multiple of 1,000 shares)
which the Corporation is then permitted to redeem. Such redemptions will be made
on a pro rata basis as nearly as may be possible, disregarding fractions, in
proportion to the number of Series A Preferred Shares deposited for redemption
by each such holder.

7.5 If the redemption by the Corporation of all Series A Preferred Shares
required to be redeemed on the Retraction Date under Section 7.4 hereof would be
contrary to applicable law, then the Corporation shall redeem on a pro rata
basis in the manner contemplated by Section 7.4 hereof on each dividend payment
date thereafter the number of such Series A Preferred Shares (rounded, except
for the final redemption of any number of shares less than 1,000, to the next
lower multiple of 1,000 shares) as the Corporation is then permitted to redeem
until all such Series A Preferred Shares have been redeemed.

7.6 Upon any redemption of part but not all Series A Preferred Shares
represented by any certificate(s) deposited as aforesaid, the Corporation shall
issue to the Holder a new certificate representing the number of Series A
Preferred Shares not redeemed and remaining outstanding.

7.7 The election of any Holder to require the Corporation to redeem any Series A
Preferred Shares shall be irrevocable upon receipt by the transfer agent and
registrar of the certificates for the shares to be redeemed and the
signification of election of the Holder as aforesaid.

                                      -45-
<PAGE>

                                    ARTICLE 8
                        Conversion into a Further Series

8.1 For the purposes of these rights, privileges, restrictions and conditions:

(i) "Earlier Series" means the Series A Preferred Shares;

(ii) "Further Series" means any series of the Preferred Shares other than the
Earlier Shares if designated by the Corporation.

8.2 The Corporation may, at its option, designate a Further Series for the
purposes of this Article 8, provided that the Corporation shall not issue any
such Further Series unless:

(i) the Corporation shall obtain an amendment to its Articles determining the
designation and the rights, privileges, restrictions and conditions of such
series and fixing the number of shares in such series as a number at least equal
to the number of shares of the Earlier Series outstanding at the close of
business on the day prior to the effective date of the Articles of Amendment
designating such series;

(ii) the rights, privileges, restrictions and conditions attaching to the
Further Series shall be, mutatis mutandis, the same in all material respects as
the rights, privileges, restrictions and conditions attaching to the Earlier
Series, except that:

(a) the rate of dividends on the Further Series may be greater or less than the
rate of dividends on the Earlier Series;

(b) a period may be established during which the shares of a Further Series will
not be redeemable at the option of the Corporation;

(c) a redemption price or scale of redemption prices may be established for each
Further Series for any period or periods higher than the Redemption Price or
scale of redemption prices applicable to the Earlier Series for any such period
or periods;

(d) there need not be a conversion privilege attaching to the Further Series;
and

(e) any right, privilege, restriction or condition attaching to the Earlier
Series which, at the time of designation of a Further Series, has expired or
become ineffective need not be attached to that Further Series;

(iii) the Corporation shall, at the time of designation of a Further Series,
have used or use its best efforts to qualify the shares of that Further Series
for distribution or distribution to the public, as the case may be, in all
provinces of Canada in which there are holders of shares of the Earlier Series
whose addresses appear in the books of the Corporation to be in such provinces
or in which there is a stock exchange upon which shares of the Earlier Series
are listed unless, with respect to any province, the Corporation shall have
received an opinion of counsel to the effect that the conversion of the Earlier
Series into a Further Series and the subsequent trading of shares of the Further
Series by the holders thereof are exempt from the requirements of the securities
laws of such province restricting the distribution or distribution to the
public, as the case may require, of securities; and

                                      -46-
<PAGE>

(iv) the Corporation shall, at the time of designation of a Further Series, have
used or use its best efforts to have such Further Series listed on each stock
exchange on which the Earlier Series is listed at such time.

The Corporation shall be entitled but not required to rely on an opinion of
counsel with respect to its compliance with any one or more of the foregoing
conditions.

8.3 (a) If the Corporation has designated a Further Series and is entitled to
issue such series, then so long as any shares of the Earlier Series remain
outstanding a holder of shares of the Earlier Series shall have the right, at
his option, to convert the shares of the Earlier Series into fully-paid and
non-assessable shares of the Further Series on a share-for-share basis, at any
time on and after the date on which the Articles of Amendment designating the
Further Series become effective and on or before the earlier of:

(i) the close of business on the third business day prior to the Redemption Date
for the Earlier Series; or

(ii) the close of business on the day prior to the date upon which the election
of the holder to require the Corporation to redeem the Earlier Series becomes
irrevocable;

as the case may be.

(b) If a holder of any shares of the Earlier Series exercises the right of
conversion attaching thereto, between the time when the Company gives notice of
redemption affecting any of the shares registered in the name of that holder and
the close of business on the third business day prior to the Redemption Date,
the holder shall be deemed to have exercised such right of conversion first with
respect to a number of shares up to the number of shares of that holder so
called for redemption and thereafter with respect to the balance, if any, of the
shares of which that holder has elected to convert, unless at the time of
exercise of such right of conversion the holder has given written instructions
to the contrary to the transfer agent and registrar.

8.4 (a) The conversion right provided for in this Article 8 may be exercised by
notice in writing given to the transfer agent and registrar, accompanied by the
certificate or certificates representing the shares of the Earlier Series in
respect of which the holder thereof desires to exercise such right of
conversion. The notice shall be signed by such holder and shall specify the
number of shares of the Earlier Series which the holder desires to have
converted and the name or names in which the shares resulting from such
conversion are to be registered. If less than all of the shares of the Earlier
Series represented by any certificate or certificates accompanying any such
notice are to be converted, the holder shall be entitled to receive a new
certificate without charge representing the shares of the Earlier Series
comprised in the certificate or certificates surrendered as aforesaid which are
not to be converted. Upon the conversion of any shares of the Earlier Series
there shall be no payment or adjustment by the Corporation or by any holder of
shares of the Earlier Series on account of any dividends either on the shares of
the Earlier Series so converted or on the shares of a Further Series resulting
from such conversion. On any conversion of shares of the Earlier Series the
share certificates representing shares resulting therefrom shall be issued in
the name of the registered holder of the shares of the Earlier Series converted
or, subject to payment by the registered holder of any stock transfer or other
applicable taxes, in such name or names as such registered holder may direct in
writing (either in the notice above referred to or otherwise).

                                      -47-
<PAGE>

(b) The right of a registered holder of shares of the Earlier Series to convert
the same into shares of a Further Series shall be deemed to have been exercised,
and the registered holder of the shares of the Earlier Series to be converted
(or any person or person in whose name or names such registered holder of shares
of the Earlier Series shall have directed the issuance of further certificates)
shall be deemed to have become a holder of the Further Series specified of
record for all purposes on the later of the date of surrender of the
certificates representing the shares of the Earlier Series to be converted
together with the notice in writing referred to in subsection (a) of this
Section, or the date upon which such right may first be exercised pursuant to
Section 8.3, notwithstanding any delay in the delivery of the certificates
representing the shares of a Further Series into which such shares of the
Earlier Series have been converted.

8.5 The Further Series shall not be reclassified, consolidated, sub-divided,
converted, exchanged for shares of another class or series, nor shall the
rights, privileges, restrictions and conditions attaching thereto be otherwise
changed, except with the approval of the holders of the Earlier Series given as
specified in Article 10.3.

8.6 Except in connection with the exercise of a conversion right attaching to
the Earlier Series to convert into a Further Series, the Corporation shall not
issue any shares of a Further Series.

                                    ARTICLE 9
                                  Voting Rights

9.1 Except as provided in the provisions attaching to the Preferred Shares as a
class, the holders of Series A Preferred Shares shall not be entitled as such to
receive notice of or to attend or to vote at any meeting of shareholders of the
Corporation.

                                   ARTICLE 10
                                  Miscellaneous

10.1 The rights, privileges, restrictions and conditions attaching to the Series
A Preferred Shares may be repealed, altered, modified, amended or varied in
whole or in part only with the prior approval of the Holders given in the manner
provided in Section 10.2 in addition to any other approval required by the
Canada Business Corporations Act or any other applicable statutory provision of
like or similar effect, from time to time in force.

10.2 The approval of the Holders with respect to any and all matters
hereinbefore referred to may be given by at least 66 2/3% of the votes cast at a
meeting of the Holders duly called for that purpose and held upon at least 21
days' notice, at which the Holders of a majority of the outstanding Series A
Preferred Shares are present or represented by proxy. If at any such meeting the
Holders of a majority of the outstanding Series A Preferred Shares are not
present or represented by proxy within one-half an hour after the time appointed
for such meeting, then the meeting shall be adjourned to such date being not
less than 30 days later and to such time and place as may be appointed by the
chairman of the meeting and not less than 21 days' notice shall be given of such
adjourned meeting but it shall not be necessary in such notice to specify the
purpose for which the meeting was originally called. At such adjourned meeting
the Holders present or represented by proxy shall constitute a quorum and may
transact the business for which the meeting was originally called and a
resolution passed thereat by not less than 66 2/3% of the votes cast at such
adjourned meeting shall be effective notwithstanding that the Holders of a
majority of the Series A Preferred Shares are not present or represented by
proxy and the

                                      -48-
<PAGE>

conduct thereof shall be from time to time prescribed by the by-laws of the
Corporation with respect to meetings of shareholders. On every poll taken at
every such meeting or adjourned meeting every Holder shall be entitled to one
vote in respect of each Series A Preferred Share held by him.

10.3 Any notice required or permitted to be given to a Holder shall be mailed by
letter, postage prepaid, or delivered to such Holder at his address as it
appears on the records of the Corporation or in the event of the address of any
such Holder not so appearing then to the last known address of such Holder. The
accidental failure to give notice to one or more of such shareholders shall not
affect the validity of any action requiring the giving of notice by the
Corporation. Any notice given as aforesaid shall be deemed to be given on the
date upon which it is mailed or delivered.

                                      -49-
<PAGE>

PART 4 - SERIES B CONVERTIBLE REDEEMABLE PREFERRED SHARES
---------------------------------------------------------

A. The directors of the Corporation hereby fix the number of shares for the
third series of the Preferred Shares at 631,400 shares;

B. The directors of the Corporation hereby determine that the designation of the
third series of the Preferred Shares is Series B Convertible Redeemable
Preferred Shares (hereinafter called the "Series B Preferred Shares") and that
the rights, privileges, restrictions and conditions attaching to the Series B
Preferred Shares (in addition to the rights, privileges, conditions,
restrictions, limitations and prohibitions attaching to the Preferred Shares as
a class) shall be as follows:

                                    ARTICLE 1
                                 Interpretation

1.1 Definitions
    -----------

"Business Day" means any day other than a Saturday, Sunday or statutory holiday;

"close of business" means the normal closing hour of the principal office in the
City of Toronto of the transfer agent and registrar;

"Common Shares" means the Common Shares of the Corporation;

"Conversion Rate" at any date means one Common Share per Series B Preferred
Share unless such rate has been adjusted in accordance with the provisions of
Section 2.4;

"Directors" means the board of directors of the Corporation and reference
without more to action by the Directors shall mean action by the Directors as a
board or by any authorized committee thereof;

"herein", "hereto", "hereunder", "hereof", "hereby" and similar expressions mean
or refer to these Series B Preferred Share provisions and not to any particular
Section, subsection, subdivision or portion hereof, and the expressions
"Article", "Section" and "subsection", followed by a number and/or a letter mean
and refer to the specified Article, Section or subsection hereof;

"Holder" means the registered holder of any Series B Preferred Shares;

"Notice of Redemption" means a notice in writing given, as hereinafter provided,
by the Corporation to the holders of Series B Preferred Shares setting forth the
Redemption Price, the place at which redemption is to take place, and, if part
only of the Series B Preferred Shares is to be redeemed, the number thereof to
be redeemed;

"Redemption Date" means the date fixed by the Directors for redemption of Series
B Preferred Shares set forth in the Notice of Redemption;

"Redemption Price" means $8.07 per Series B Preferred Share; and

"transfer agent and registrar" means the person or persons from time to time
appointed by the Directors as the transfer agent and registrar in Canada for the
Series B Preferred Shares.

                                      -50-
<PAGE>

1.2 Words importing the singular number only include the plural and vice versa
and words importing any gender include all genders.

1.3 All dollar amounts referred to herein shall be in lawful money of Canada.

1.4 The division of these Series B Preferred Share provisions into Articles,
Sections, subsections, clauses, subclauses or other subdivisions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation hereof.

1.5 In the event that any date upon or by which any action is required to be
taken by the Corporation is not a Business Day, then such action shall be
required to be taken on or by the next succeeding day which is a Business Day.

                                    ARTICLE 2
                          Conversion into Common Shares

2.1 Each Series B Preferred Share shall be convertible at any time up to but not
after the close of business on September 6, 1989 into fully paid and
non-assessable Common Shares on the basis of one Common Share for each Series B
Preferred Share in respect of which the conversion privilege is exercised.

2.2 In order to exercise the conversion right, a Holder shall present and
surrender to the transfer agent and registrar the respective certificates
representing such Series B Preferred Shares together with written notice of
conversion (which shall be and be deemed to be irrevocable) signed by such
holder stating that he elects to convert such Series B Preferred Shares. Such
notice of conversion shall also state the name or names (with addresses) in
which the certificate or certificates for Common Shares which shall be issuable
on such conversion shall be issued. If any of the Common Shares into which such
Series B Preferred Shares are to be converted are to be issued to a person or
persons other than the Holder of such Series B Preferred Shares, the signature
of such Holder on such notice of conversion shall be guaranteed in a manner
satisfactory to the transfer agent and registrar and such notice of conversion
shall be accompanied by payment to the transfer agent and registrar of any
transfer tax which may be payable by reason thereof. The date of receipt by the
transfer agent and registrar of certificates representing such Series B
Preferred Shares and such notice of conversion is herein referred to as the
"Date of Conversion" of such Series B Preferred Shares.

As promptly as practicable after the Date of Conversion, the Corporation shall
issue or cause to be issued and deliver or cause to be delivered to the Holder
who has exercised the conversion right of any Series B Preferred Shares, or on
his written order, a certificate or certificates in the name or names of the
person or persons specified in the applicable notice of conversion for the
number of Common Shares deliverable upon the conversion of such Series B
Preferred Shares. Such conversion shall be deemed to have been effected
immediately prior to the close of business on the Date of Conversion and at such
time the rights of the holder of such Series B Preferred Shares as such holder
shall, subject to the provisions of Section 2.4, cease and the person or persons
in whose name or names any certificate or certificates for Common Shares shall
be deliverable upon such conversion shall be deemed to have thereupon become the
holder or holders of record of the Common Shares represented thereby; provided,
however, that no exercise of the conversion right on any date when the share
transfer registers for Common Shares shall be closed shall be effective to
constitute the person or persons entitled to receive the

                                      -51-
<PAGE>

Common Shares upon such conversion as the holder or holders of record of such
Common Shares on such date, but such surrender shall be effective to constitute
the person or persons entitled to receive such Common Shares as the holder or
holders of record thereof for all purposes at the close of business on the next
succeeding day on which such share transfer registers are open.

Upon surrender to the transfer agent and registrar of any certificate
representing more than the number of Series B Preferred Shares which are to be
converted, the holder thereof shall be entitled to receive, without expense to
such holder, one or more new certificates for the number of unconverted Series B
Preferred Shares represented by the certificate surrendered.

2.3 Notwithstanding anything herein contained, the Corporation shall in no case
be required to issue a fraction of a Common Share upon the conversion of any
Series B Preferred Share. If any fractional interest in a Common Share would,
except for the provisions of this Section, be deliverable upon the conversion of
any Series B Preferred Share, the Corporation shall issue or cause to be issued
to the holder of such surrendered Series B Preferred Share a non-voting and
non-dividend bearing scrip certificate or certificates transferable by delivery
entitling the holder thereof and of other similar certificates aggregating one
full Common Share, upon surrender of such certificates for consolidation at such
place in Canada as may be designated therein, to obtain from the Corporation a
full Common Share and to receive a share certificate therefor, as well as a
further scrip certificate representing the excess, if any, over one full Common
Share of the scrip certificates surrendered for consolidation. Such scrip
certificates shall be in such form and shall be subject to such terms and
conditions as the Corporation may determine and shall provide that the same
shall be null and void on and after a date to be fixed by the directors of the
Corporation, but no such date shall be less than one year following the date of
issue of the scrip certificate concerned. In lieu of issuing scrip certificates
as aforesaid, the Corporation may adjust any fractional interest of a Common
Share by the payment by cheque of an amount equal to the then current market
value of such fractional interest computed (to the nearest cent) on the basis of
the last board lot sale price on The Toronto Stock Exchange, on the trading day
next preceding the Conversion Date, or, if the Common Shares are not listed on
The Toronto Stock Exchange, on such stock exchange on which the Common Shares
are listed as may be selected for such purpose by the Directors. If the Common
Shares are not listed on any stock exchange, the current market value of such
fractional interest shall be determined by the Directors.

2.4 The Conversion Rate and the number of Common Shares into which each Series B
Preferred Share may be converted shall be subject to adjustment from time to
time if and whenever at any time prior to September 6, 1989 the Corporation
shall (i) subdivide its outstanding Common Shares into a greater number of
shares, or (ii) consolidate its outstanding Common Shares into a lesser number
of shares, the Conversion Rate shall be proportionately adjusted so that a
Holder who has not exercised the conversion right prior to the effective date of
such subdivision or consolidation shall be entitled to receive and shall accept
upon the exercise of such right at any time on or after such record date or
effective date, in lieu of the number of Common Shares which he is otherwise
entitled to receive at the time he exercises the conversion right, the aggregate
number of Common Shares that such Holder would have been entitled to receive as
a result of such subdivision or consolidation if, on the record date or
effective date thereof, he had been the registered holder of the number of
Common Shares that he is otherwise entitled to receive at the time he exercises
the conversion right. Such adjustments shall be made successively whenever any
event listed above shall occur.

                                      -52-
<PAGE>

2.5 The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment in the Conversion Rate as above provided,
lodge with the transfer agent and registrar, a certificate of the chief
financial officer specifying the nature of the event requiring the adjustment
and the amount of the adjustment thereby necessitated and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based, which certificate and the amount of the adjustment therein
specified shall be verified by an opinion of the Corporation's auditors and,
when so verified shall be conclusive and binding on all parties in interest. The
Corporation shall forthwith give notice of such adjustment to each Holder, which
notice shall specify the Conversion Rate after such adjustment and the event
requiring such adjustment.

2.6 In the event of any reclassification of or change in the Common Shares
(other than a change as a result of a subdivision or consolidation), or in the
event of any amalgamation of the Corporation with, or merger of the Corporation
into, any other corporation (other than an amalgamation or merger in which the
Corporation is the continuing corporation and which does not result in any
reclassification or change of the Common Shares), or in the event of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation, the Holder of each Series B Preferred Share then outstanding shall
be entitled to receive and shall accept upon the conversion of a Series B
Preferred Share at any time on the effective date or thereafter (until the
expiration of the conversion right of such Holder), in lieu of the Common Shares
which he is otherwise entitled to receive at the time he exercises the
conversion right, the kind and amount of shares and other securities and
property that such Holder would have been entitled to receive as a result of
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition if, on the effective date thereof, he had been the registered holder
of the number of Common Shares that he is otherwise entitled to receive at the
time he exercises the conversion right, subject to such adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article. The provisions of this Section 2.6 shall similarly apply to
successive reclassifications, changes, amalgamations, mergers, sales, transfers
or other dispositions.

2.7 All Series B Preferred Shares surrendered upon the exercise of the
conversion right shall be cancelled by the transfer agent and registrar and the
number thereof shall not be restored to the status of authorized but unissued
shares.

2.8 As a condition precedent to the taking of any action which would require an
adjustment to the Conversion Rate, the Corporation shall take any corporate
action which may, in the opinion of counsel, be necessary in order that the
Corporation shall have unissued and reserved the number of authorized Common
Shares to which the Holders are entitled on the full exercise of their
conversion rights in accordance with the provisions hereof.

2.9 If any Common Shares reserved or to be reserved for the purpose of
conversion of the Series B Preferred Shares hereunder, require registration with
or approval of any governmental authority under any Canadian or Provincial law
before such shares may be validly issued upon conversion, the Corporation will
take such action as may be necessary to secure such registration or approval, as
the case may be.

                                      -53-
<PAGE>

                                    ARTICLE 3
                                   Redemption

3.1 Subject to the provisions of any applicable law and to the provision of the
conditions to the Preferred Shares as a class relating to liquidation,
dissolution, winding up and distribution of assets, the Corporation may, at its
option, redeem the Series B Preferred Shares in whole at any time or in part
from time to time in such manner as the Directors shall determine on payment of
the Redemption Price for each such share to be redeemed.

3.2 A Notice of Redemption shall be given by the Corporation not less than 15
days prior to the date fixed for redemption to each Holder of Series B Preferred
Shares to be redeemed. Accidental failure or omission to give such notice to one
or more of such Holders shall not affect the validity of such redemption. On and
after the Redemption Date, the Corporation shall pay or cause to be paid to or
to the order of the Holders of the Series B Preferred Shares to be redeemed the
Redemption Price on presentation and surrender at the place of redemption of the
respective certificates representing such shares. Such payment shall be made by
cheque drawn on a Canadian chartered bank and payable at par at any branch in
Canada of such bank. Such shares in respect of which the Redemption Price has
been paid as aforesaid shall thereupon be redeemed. If less than all the Series
B Preferred Shares represented by any certificate shall be redeemed, a new
certificate for the balance shall be issued. From and after the Redemption Date,
the Holders of the Series B Preferred Shares called for redemption shall cease
to be entitled to exercise any of the rights of Holders in respect thereof
unless payment of the Redemption Price shall not be made in accordance with the
foregoing provisions, in which case the rights of the Holders shall remain
unimpaired. The Corporation shall have the right at any time after mailing a
Notice of Redemption to deposit the Redemption Price of the shares thereby
called for redemption, or such part thereof as at the time of deposit has not
been claimed by the shareholders entitled thereto, in any Canadian chartered
bank or trust company in Canada specified in the Notice of Redemption or in a
subsequent notice to the Holders in respect of which the deposit is made, in a
special account for the Holders of such shares, and upon such deposit being made
or upon the Redemption Date, whichever is later, the Series B Preferred Shares
in respect of which such deposit shall have been made shall be deemed to be
redeemed and the rights of each Holder shall be limited to receiving, without
interest, his proportionate part of the Redemption Price so deposited upon
presentation and surrender of the certificates representing his shares so
redeemed. Any interest on such deposit shall belong to the Corporation.

                                    ARTICLE 4
                                  Voting Rights

4.1 Except as provided in the provisions attaching to the Preferred Shares as a
class, the holders of Series B Preferred Shares shall not be entitled as such to
receive notice of or to attend or to vote at any meeting of shareholders of the
Corporation.

                                    ARTICLE 5
                                  Miscellaneous

5.1 The rights, privileges, restrictions and conditions attaching to the Series
B Preferred Shares may be repealed, altered, modified, amended or varied in
whole or in part only with the prior approval of the Holders given in the manner
provided in Section 5.2 in addition to any other

                                      -54-
<PAGE>

approval required by the Canada Business Corporations Act or any other
applicable statutory provision of like or similar effect, from time to time in
force.

5.2 The approval of the Holders with respect to any and all matters hereinbefore
referred to may be given by at least 66 2/3% of the votes cast at a meeting of
the Holders duly called for that purpose and held upon at least 21 days' notice,
at which the Holders of a majority of the outstanding Series B Preferred Shares
are present or represented by proxy. If at any such meeting the Holders of a
majority of the outstanding Series B Preferred Shares are not present or
represented by proxy within one-half an hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being not less than 30
days later and to such time and place as may be appointed by the chairman of the
meeting and not less than 21 days' notice shall be given of such adjourned
meeting but it shall not be necessary in such notice to specify the purpose for
which the meeting was originally called. At such adjourned meeting the Holders
present or represented by proxy shall constitute a quorum and may transact the
business for which the meeting was originally called and a resolution passed
thereat by not less than 66 2/3% of the votes cast at such adjourned meeting
shall be effective notwithstanding that the Holders of a majority of the Series
B Preferred Shares are not present or represented by proxy and the conduct
thereof shall be from time to time prescribed by the by-laws of the Corporation
with respect to meetings of shareholders. On every poll taken at every such
meeting or adjourned meeting every Holder shall be entitled to one vote in
respect of each Series B Preferred Share held by him.

5.3 Any notice required or permitted to be given to a Holder shall be mailed by
letter, postage prepaid, or delivered to such Holder at his address as it
appears on the records of the Corporation or in the event of the address of any
such Holder not so appearing then to the last known address of such Holder. The
accidental failure to give notice to one or more of such shareholders shall not
affect the validity of any action requiring the giving of notice by the
Corporation. Any notice given as aforesaid shall be deemed to be given on the
date upon which it is mailed or delivered.

                                      -55-
<PAGE>

PART 5 - SERIES C CONVERTIBLE REDEEMABLE PREFERRED SHARES
---------------------------------------------------------

A. The directors of the Corporation hereby fix the number of shares for the
fourth series of the Preferred Shares at 800,000 shares;

B. The directors of the Corporation hereby determine that the designation of the
third series of the Preferred Shares is Series C Convertible Redeemable
Preferred Shares (hereinafter called the "Series C Preferred Shares") and that
the rights, privileges, restrictions and conditions attaching to the Series C
Preferred Shares (in addition to the rights, privileges, conditions,
restrictions, limitations and prohibitions attaching to the Preferred Shares as
a class) shall be as follows:

                                    ARTICLE 1
                                 Interpretation

1.1 Definitions
    -----------

"Business Day" means any day other than a Saturday, Sunday or statutory holiday;

"close of business" means the normal closing hour of the principal office in the
City of Toronto of the transfer agent and registrar;

"Common Shares" means the Common Shares of the Corporation;

"Conversion Rate" at any date means one Common Share per Series C Preferred
Share unless such rate has been adjusted in accordance with the provisions of
Section 2.4;

"Directors" means the board of directors of the Corporation and reference
without more to action by the Directors shall mean action by the Directors as a
board or by any authorized committee thereof;

"herein", "hereto", "hereunder", "hereof", "hereby" and similar expressions mean
or refer to these Series C Preferred Share provisions and not to any particular
Section, subsection, subdivision or portion hereof, and the expressions
"Article", "Section" and "subsection", followed by a number and/or a letter mean
and refer to the specified Article, Section or subsection hereof;

"Holder" means the registered holder of any Series C Preferred Shares;

"Notice of Redemption" means a notice in writing given, as hereinafter provided,
by the Corporation to the holders of Series C Preferred Shares setting forth the
Redemption Price, the place at which redemption is to take place, and, if part
only of the Series C Preferred Shares is to be redeemed, the number thereof to
be redeemed;

"Redemption Date" means the date fixed by the Directors for redemption of Series
C Preferred Shares set forth in the Notice of Redemption;

"Redemption Price" means $8.07 per Series C Preferred Share; and

"transfer agent and registrar" means the person or persons from time to time
appointed by the Directors as the transfer agent and registrar in Canada for the
Series C Preferred Shares.

                                      -56-
<PAGE>

1.2 Words importing the singular number only include the plural and vice versa
and words importing any gender include all genders.

1.3 All dollar amounts referred to herein shall be in lawful money of Canada.

1.4 The division of these Series C Preferred Share provisions into Articles,
Sections, subsections, clauses, subclauses or other subdivisions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation hereof.

1.5 In the event that any date upon or by which any action is required to be
taken by the Corporation hereunder is not a Business Day, then such action shall
be required to be taken on or by the next succeeding day which is a Business
Day.

                                    ARTICLE 2
                          Conversion into Common Shares

2.1 Each Series C Preferred Share shall be convertible at any time up to but not
after the close of business on September 6, 1989 into fully paid and
non-assessable Common Shares on the basis of one Common Share for each Series C
Preferred Share in respect of which the conversion privilege is exercised.

2.2 In order to exercise the conversion right, a Holder shall present and
surrender to the transfer agent and registrar the respective certificates
representing such Series C Preferred Shares together with written notice of
conversion (which shall be and be deemed to be irrevocable) signed by such
holder stating that he elects to convert such Series C Preferred Shares. Such
notice of conversion shall also state the name or names (with addresses) in
which the certificate or certificates for Common Shares which shall be issuable
on such conversion shall be issued. If any of the Common Shares into which such
Series C Preferred Shares are to be converted are to be issued to a person or
persons other than the Holder of such Series C Preferred Shares, the signature
of such Holder on such notice of conversion shall be guaranteed in a manner
satisfactory to the transfer agent and registrar and such notice of conversion
shall be accompanied by payment to the transfer agent and registrar of any
transfer tax which may be payable by reason thereof. The date of receipt by the
transfer agent and registrar of certificates representing such Series C
Preferred Shares and such notice of conversion is herein referred to as the
"Date of Conversion" of such Series C Preferred Shares.

As promptly as practicable after the Date of Conversion, the Corporation shall
issue or cause to be issued and deliver or cause to be delivered to the Holder
who has exercised the conversion right of any Series C Preferred Shares, or on
his written order, a certificate or certificates in the name or names of the
person or persons specified in the applicable notice of conversion for the
number of Common Shares deliverable upon the conversion of such Series C
Preferred Shares. Such conversion shall be deemed to have been effected
immediately prior to the close of business on the Date of Conversion and at such
time the rights of the holder of such Series C Preferred Shares as such holder
shall, subject to the provisions of Section 2.4, cease and the person or persons
in whose name or names any certificate or certificates for Common Shares shall
be deliverable upon such conversion shall be deemed to have thereupon become the
holder or holders of record of the Common Shares represented thereby; provided,
however, that no exercise of the conversion right on any date when the share
transfer registers for Common Shares shall be closed shall be effective to
constitute the person or persons entitled to receive the

                                      -57-
<PAGE>

Common Shares upon such conversion as the holder or holders of record of such
Common Shares on such date, but such surrender shall be effective to constitute
the person or persons entitled to receive such Common Shares as the holder or
holders of record thereof for all purposes at the close of business on the next
succeeding day on which such share transfer registers are open.

Upon surrender to the transfer agent and registrar of any certificate
representing more than the number of Series C Preferred Shares which are to be
converted, the holder thereof shall be entitled to receive, without expense to
such holder, one or more new certificates for the number of unconverted Series C
Preferred Shares represented by the certificate surrendered.

2.3 Notwithstanding anything herein contained, the Corporation shall in no case
be required to issue a fraction of a Common Share upon the conversion of any
Series C Preferred Share. If any fractional interest in a Common Share would,
except for the provisions of this Section, be deliverable upon the conversion of
any Series C Preferred Share, the Corporation shall issue or cause to be issued
to the holder of such surrendered Series C Preferred Share a non-voting and
non-dividend bearing scrip certificate or certificates transferable by delivery
entitling the holder thereof and of other similar certificates aggregating one
full Common Share, upon surrender of such certificates for consolidation at such
place in Canada as may be designated therein, to obtain from the Corporation a
full Common Share and to receive a share certificate therefor, as well as a
further scrip certificate representing the excess, if any, over one full Common
Share of the scrip certificates surrendered for consolidation. Such scrip
certificates shall be in such form and shall be subject to such terms and
conditions as the Corporation may determine and shall provide that the same
shall be null and void on and after a date to be fixed by the directors of the
Corporation, but no such date shall be less than one year following the date of
issue of the scrip certificate concerned. In lieu of issuing scrip certificates
as aforesaid, the Corporation may adjust any fractional interest of a Common
Share by the payment by cheque of an amount equal to the then current market
value of such fractional interest computed (to the nearest cent) on the basis of
the last board lot sale price on The Toronto Stock Exchange, on the trading day
next preceding the Conversion Date, or, if the Common Shares are not listed on
The Toronto Stock Exchange, on such stock exchange on which the Common Shares
are listed as may be selected for such purpose by the Directors. If the Common
Shares are not listed on any stock exchange, the current market value of such
fractional interest shall be determined by the Directors.

2.4 The Conversion Rate and the number of Common Shares into which each Series C
Preferred Share may be converted shall be subject to adjustment from time to
time if and whenever at any time prior to September 6, 1989 the Corporation
shall (i) subdivide its outstanding Common Shares into a greater number of
shares, or (ii) consolidate its outstanding Common Shares into a lesser number
of shares, the Conversion Rate shall be proportionately adjusted so that a
Holder who has not exercised the conversion right prior to the effective date of
such subdivision or consolidation shall be entitled to receive and shall accept
upon the exercise of such right at any time on or after such record date or
effective date, in lieu of the number of Common Shares which he is otherwise
entitled to receive at the time he exercises the conversion right, the aggregate
number of Common Shares that such Holder would have been entitled to receive as
a result of such subdivision or consolidation if, on the record date or
effective date thereof, he had been the registered holder of the number of
Common Shares that he is otherwise entitled to receive at the time he exercises
the conversion right. Such adjustments shall be made successively whenever any
event listed above shall occur.

                                      -58-
<PAGE>

2.5 The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment in the Conversion Rate as above provided,
lodge with the transfer agent and registrar, a certificate of the chief
financial officer specifying the nature of the event requiring the adjustment
and the amount of the adjustment thereby necessitated and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based, which certificate and the amount of the adjustment therein
specified shall be verified by an opinion of the Corporation's auditors and,
when so verified shall be conclusive and binding on all parties in interest. The
Corporation shall forthwith give notice of such adjustment to each Holder, which
notice shall specify the Conversion Rate after such adjustment and the event
requiring such adjustment.

2.6 In the event of any reclassification of or change in the Common Shares
(other than a change as a result of a subdivision or consolidation), or in the
event of any amalgamation of the Corporation with, or merger of the Corporation
into, any other corporation (other than an amalgamation or merger in which the
Corporation is the continuing corporation and which does not result in any
reclassification or change of the Common Shares), or in the event of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation, the Holder of each Series C Preferred Share then outstanding shall
be entitled to receive and shall accept upon the conversion of a Series C
Preferred Share at any time on the effective date or thereafter (until the
expiration of the conversion right of such Holder), in lieu of the Common Shares
which he is otherwise entitled to receive at the time he exercises the
conversion right, the kind and amount of shares and other securities and
property that such Holder would have been entitled to receive as a result of
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition if, on the effective date thereof, he had been the registered holder
of the number of Common Shares that he is otherwise entitled to receive at the
time he exercises the conversion right, subject to such adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article. The provisions of this Section 2.6 shall similarly apply to
successive reclassifications, changes, amalgamations, mergers, sales, transfers
or other dispositions.

2.7 All Series C Preferred Shares surrendered upon the exercise of the
conversion right shall be cancelled by the transfer agent and registrar and the
number thereof shall not be restored to the status of authorized but unissued
shares.

2.8 As a condition precedent to the taking of any action which would require an
adjustment to the Conversion Rate, the Corporation shall take any corporate
action which may, in the opinion of counsel, be necessary in order that the
Corporation shall have unissued and reserved the number of authorized Common
Shares to which the Holders are entitled on the full exercise of their
conversion rights in accordance with the provisions hereof.

2.9 If any Common Shares reserved or to be reserved for the purpose of
conversion of the Series C Preferred Shares hereunder, require registration with
or approval of any governmental authority under any Canadian or Provincial law
before such shares may be validly issued upon conversion, the Corporation will
take such action as may be necessary to secure such registration or approval, as
the case may be.

                                      -59-
<PAGE>

                                    ARTICLE 3
                                   Redemption

3.1 Subject to the provisions of any applicable law and to the provision of the
conditions to the Preferred Shares as a class relating to liquidation,
dissolution, winding up and distribution of assets, the Corporation may, at its
option, redeem the Series C Preferred Shares in whole at any time or in part
from time to time in such manner as the Directors shall determine on payment of
the Redemption Price for each such share to be redeemed.

3.2 A Notice of Redemption shall be given by the Corporation not less than 15
days prior to the date fixed for redemption to each Holder of Series C Preferred
Shares to be redeemed. Accidental failure or omission to give such notice to one
or more of such Holders shall not affect the validity of such redemption. On and
after the Redemption Date, the Corporation shall pay or cause to be paid to or
to the order of the Holders of the Series C Preferred Shares to be redeemed the
Redemption Price on presentation and surrender at the place of redemption of the
respective certificates representing such shares. Such payment shall be made by
cheque drawn on a Canadian chartered bank and payable at par at any branch in
Canada of such bank. Such shares in respect of which the Redemption Price has
been paid as aforesaid shall thereupon be redeemed. If less than all the Series
C Preferred Shares represented by any certificate shall be redeemed, a new
certificate for the balance shall be issued. From and after the Redemption Date,
the Holders of the Series C Preferred Shares called for redemption shall cease
to be entitled to exercise any of the rights of Holders in respect thereof
unless payment of the Redemption Price shall not be made in accordance with the
foregoing provisions, in which case the rights of the Holders shall remain
unimpaired. The Corporation shall have the right at any time after mailing a
Notice of Redemption to deposit the Redemption Price of the shares thereby
called for redemption, or such part thereof as at the time of deposit has not
been claimed by the shareholders entitled thereto, in any Canadian chartered
bank or trust company in Canada specified in the Notice of Redemption or in a
subsequent notice to the Holders in respect of which the deposit is made, in a
special account for the Holders of such shares, and upon such deposit being made
or upon the Redemption Date, whichever is later, the Series C Preferred Shares
in respect of which such deposit shall have been made shall be deemed to be
redeemed and the rights of each Holder shall be limited to receiving, without
interest, his proportionate part of the Redemption Price so deposited upon
presentation and surrender of the certificates representing his shares so
redeemed. Any interest on such deposit shall belong to the Corporation.

                                    ARTICLE 4
                                  Voting Rights

4.1 Except as provided in the provisions attaching to the Preferred Shares as a
class, the holders of Series C Preferred Shares shall not be entitled as such to
receive notice of or to attend or to vote at any meeting of shareholders of the
Corporation.

                                    ARTICLE 5
                                  Miscellaneous

5.1 The rights, privileges, restrictions and conditions attaching to the Series
C Preferred Shares may be repealed, altered, modified, amended or varied in
whole or in part only with the prior approval of the Holders given in the manner
provided in Section 5.2 in addition to any other

                                      -60-
<PAGE>

approval required by the Canada Business Corporations Act or any other
applicable statutory provision of like or similar effect, from time to time in
force.

5.2 The approval of the Holders with respect to any and all matters hereinbefore
referred to may be given by at least 66 2/3% of the votes cast at a meeting of
the Holders duly called for that purpose and held upon at least 21 days' notice,
at which the Holders of a majority of the outstanding Series C Preferred Shares
are present or represented by proxy. If at any such meeting the Holders of a
majority of the outstanding Series C Preferred Shares are not present or
represented by proxy within one-half an hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being not less than 30
days later and to such time and place as may be appointed by the chairman of the
meeting and not less than 21 days' notice shall be given of such adjourned
meeting but it shall not be necessary in such notice to specify the purpose for
which the meeting was originally called. At such adjourned meeting the Holders
present or represented by proxy shall constitute a quorum and may transact the
business for which the meeting was originally called and a resolution passed
thereat by not less than 66 2/3% of the votes cast at such adjourned meeting
shall be effective notwithstanding that the Holders of a majority of the Series
C Preferred Shares are not present or represented by proxy and the conduct
thereof shall be from time to time prescribed by the by-laws of the Corporation
with respect to meetings of shareholders. On every poll taken at every such
meeting or adjourned meeting every Holder shall be entitled to one vote in
respect of each Series C Preferred Share held by him.

5.3 Any notice required or permitted to be given to a Holder shall be mailed by
letter, postage prepaid, or delivered to such Holder at his address as it
appears on the records of the Corporation or in the event of the address of any
such Holder not so appearing then to the last known address of such Holder. The
accidental failure to give notice to one or more of such shareholders shall not
affect the validity of any action requiring the giving of notice by the
Corporation. Any notice given as aforesaid shall be deemed to be given on the
date upon which it is mailed or delivered.

                                      -61-
<PAGE>

PART 6 - SERIES D CONVERTIBLE REDEEMABLE PREFERRED SHARES
---------------------------------------------------------

A. The directors of the Corporation hereby fix the number of shares for the
fifth series of the Preferred Shares at 272,700 shares;

B. The directors of the Corporation hereby determine that the designation of the
fifth series of the Preferred Shares is Series D Convertible Redeemable
Preferred Shares (hereinafter called the "Series D Preferred Shares") and that
the rights, privileges, restrictions and conditions attaching to the Series D
Preferred Shares (in addition to the rights, privileges, conditions,
restrictions, limitations and prohibitions attaching to the Preferred Shares as
a class) shall be as follows:

                                    ARTICLE 1
                                 Interpretation

1.1 Definitions
    -----------

"Business Day" means any day other than a Saturday, Sunday or statutory holiday;

"close of business" means the normal closing hour of the principal office in the
City of Toronto of the transfer agent and registrar;

"Common Shares" means the Common Shares of the Corporation;

"Conversion Rate" at any date means one Common Share per Series D Preferred
Share unless such rate has been adjusted in accordance with the provisions of
Section 2.4;

"Directors" means the board of directors of the Corporation and reference
without more to action by the Directors shall mean action by the Directors as a
board or by any authorized committee thereof;

"herein", "hereto", "hereunder", "hereof", "hereby" and similar expressions mean
or refer to these Series D Preferred Share provisions and not to any particular
Section, subsection, subdivision or portion hereof, and the expressions
"Article", "Section" and "subsection", followed by a number and/or letter mean
and refer to the specified Article, Section or subsection hereof;

"Holder" means the registered holder of any Series D Preferred Shares;

"Notice of Redemption" means a notice in writing given, as hereinafter provided,
by the Corporation to the holders of Series D Preferred Shares setting forth the
Redemption Price, the place at which redemption is to take place, and, if part
only of the Series D Preferred Shares is to be redeemed, the number thereof to
be redeemed;

"Redemption Date" means the date fixed by the Directors for redemption of Series
D Preferred Shares set forth in the Notice of Redemption;

"Redemption Price" means $6.25 per Series D Preferred Share; and

"transfer agent and registrar" means the person or persons from time to time
appointed by the Directors as the transfer agent and registrar in Canada for the
Series D Preferred Shares.

                                      -62-
<PAGE>

1.2 Words importing the singular number only include the plural and vice versa
and words importing any gender include all genders.

1.3 All dollar amounts referred to herein shall be in lawful money of Canada.

1.4 The division of these Series D Preferred Share provisions into Articles,
Sections, subsections, clauses, subclauses or other subdivisions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation hereof.

1.5 In the event that any date upon or by which any action is required to be
taken by the Corporation hereunder is not a Business Day, then such action shall
be required to be taken on or by the next succeeding day which is a Business
Day.

                                    ARTICLE 2
                          Conversion into Common Shares

2.1 Each Series D Preferred Share shall be convertible at any time up to but not
after the close of business on May 19, 1991, into fully paid and non-assessable
Common Shares on the basis of one Common Share for each Series D Preferred Share
in respect of which the conversion privilege is exercised.

2.2 In order to exercise the conversion right, a Holder shall present and
surrender to the transfer agent and registrar the respective certificates
representing such Series D Preferred Shares together with written notice of
conversion (which shall be and be deemed to be irrevocable) signed by such
Holder stating that he elects to convert such Series D Preferred Shares. Such
notice of conversion shall also state the name or names (with addresses) in
which the certificate or certificates for Common Shares which shall be issuable
on such conversion shall be issued. If any of the Common Shares into which such
Series D Preferred Shares are to be converted are to be issued to a person or
persons other than the Holder of such Series D Preferred Shares, the signature
of such Holder of such notice of conversion shall be guaranteed in a manner
satisfactory to the transfer agent and registrar and such notice of conversion
shall be accompanied by payment to the transfer agent and registrar of any
transfer tax which may be payable by reason thereof. The date of receipt by the
transfer agent and registrar of certificates representing such Series D
Preferred Shares and such notice of conversion is herein referred to as the
"Date of Conversion" of such Series D Preferred Shares.

As promptly as practicable after the Date of Conversion, the Corporation shall
issue or cause to be issued and deliver or cause to be delivered to the Holder
who has exercised the conversion right of any Series D Preferred Shares, or on
his written order, a certificate or certificates in the name or names of the
person or persons specified in the applicable notice of conversion for the
number of Common Shares deliverable upon the conversion of such Series D
Preferred Shares. Such conversion shall be deemed to have been effected
immediately prior to the close of business on the Date of Conversion and at such
time the rights of the Holder of such Series D Preferred Shares as such Holder
shall, subject to the provisions of Section 2.4, cease and the person or persons
in whose name or names any certificate or certificates for Common Shares shall
be deliverable upon such conversion shall be deemed to have thereupon become the
holder or holders of record of the Common Shares represented thereby; provided,
however, that no exercise of the conversion right on any date when the share
transfer registers for Common Shares shall be closed shall be effective to
constitute the person or persons entitled to receive the

                                      -63-
<PAGE>

Common Shares upon such conversion as the holder or holders of record of such
Common Shares on such date, but such surrender shall be effective to constitute
the person or persons entitled to receive such Common Shares as the holder or
holders of record thereof for all purposes at the close of business on the next
succeeding day on which such share transfer registers are open.

Upon surrender to the transfer agent and registrar of any certificate
representing more than the number of Series D Preferred Shares which are to be
converted, the Holder thereof shall be entitled to receive, without expense to
such Holder, one or more new certificates for the number of unconverted Series D
Preferred Shares represented by the certificate surrendered.

2.3 Notwithstanding anything herein contained, the Corporation shall in no case
be required to issue a fraction of a Common Share upon the conversion of any
Series D Preferred Share. If any fractional interest in a Common Share would,
except for the provision of this Section, be deliverable upon the conversion of
any Series D Preferred Share, the Corporation shall issue or cause to be issued
to the Holder of such surrendered Series D Preferred Share a non-voting and
non-dividend bearing scrip certificate or certificates transferable by delivery
entitling the holder thereof and of other similar certificates aggregating one
full Common Share, upon surrender of such certificates for consolidation at such
place in Canada as may be designated therein, to obtain from the Corporation a
full Common Share and to receive a share certificate therefor, as well as a
further scrip certificate representing the excess, if any, over one full Common
Share of the scrip certificates surrendered for consolidation. Such scrip
certificates shall be in such form and shall be subject to such terms and
conditions as the Corporation may determine and shall provide that the same
shall be null and void on and after a date to be fixed by the Directors of the
Corporation, but no such date shall be less than one year following the date of
issue of the scrip certificate concerned. In lieu of issuing scrip certificates
as aforesaid, the Corporation may adjust any fractional interest of a Common
Share by the payment by cheque of an amount equal to the then current market
value of such fractional interest computed (to the nearest cent) on the basis of
the last board lot sale price on The Toronto Stock Exchange, on the trading day
next preceding the Conversion Date, or if the Common Shares are not listed on
The Toronto Stock Exchange, on such stock exchange on which the Common Shares
are listed as may be selected for such purpose by the Directors. If the Common
Shares are not listed on any stock exchange, the current market value of such
fractional interest shall be determined by the Directors.

2.4 The Conversion Rate and the number of Common Shares into which each Series D
Preferred Share may be converted shall be subject to adjustment from time to
time if and whenever at any time prior to May 19, 1991 the Corporation shall (i)
subdivide its outstanding Common Shares into a greater number of shares, or (ii)
consolidate its outstanding Common Shares into a lesser number of shares, the
Conversion Rate shall be proportionately adjusted so that a Holder who has not
exercised the conversion right prior to the effective date of such subdivision
or consolidation shall be entitled to receive and shall accept upon the exercise
of such right any time on or after such record date or effective date, in lieu
of the number of Common Shares which he is otherwise entitled to receive at the
time he exercises the conversion right, the aggregate number of Common Shares
that such Holder would have been entitled to receive as a result of such
subdivision or consolidation if, on the record date or effective date thereof,
he had been the registered holder of the number of Common Shares that he is
otherwise entitled to receive at the time he exercises the conversion right.
Such adjustments shall be made successively whenever any event listed above
shall occur.

                                      -64-
<PAGE>

2.5 The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment in the Conversion Rate as above provided,
lodge with the transfer agent and registrar, a certificate of the chief
financial officer specifying the nature of the event requiring the adjustment
and the amount of the adjustment thereby necessitated and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based, which certificate and the amount of the adjustment therein
specified shall be verified by an opinion of the Corporation's auditors and,
when so verified shall be conclusive and binding on all parties interest. The
Corporation shall forthwith give notice of such adjustment to each Holder, which
notice shall specify the Conversion Rate after such adjustment and the event
requiring such adjustment.

2.6 In the event of any reclassification of or change in the Common Shares
(other than a change as a result of a subdivision or consolidation, or in the
event of any amalgamation of the Corporation with, or merger of the Corporation
into, any other corporation (other than an amalgamation or merger in which the
Corporation is the continuing corporation and which does not result in any
reclassification or change of the Common Shares), or in the event of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation, the Holder of each Series D Preferred Share then outstanding shall
be entitled to receive and shall accept upon the conversion of a Series D
Preferred Share at any time on the effective date or thereafter (until the
expiration of the conversion right of such Holder), in lieu of the Common Shares
which he is otherwise entitled to receive at the time he exercises the
conversion right, the kind and amount of shares and other securities and
property that such Holder would have been entitled to receive as a result of
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition if, on the effective date thereof, he had been the registered holder
of the number of Common Shares that he is otherwise entitled to receive at the
time he exercises the conversion right, subject to such adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article. The provisions of this Section 2.6 shall similarly apply to
successive reclassifications, changes, amalgamations, mergers, sales, transfers
or other dispositions.

2.7 All Series D Preferred Shares surrendered upon the exercise of the
conversion right shall be cancelled by the transfer agent and registrar and the
number thereof shall not be restored to the status of authorized but unissued
shares.

2.8 As a condition precedent to the taking of any action which would require an
adjustment to the Conversion Rate, the Corporation shall take any corporate
action which may, in the opinion of counsel, be necessary in order that the
Corporation shall have unissued and reserved the number of authorized Common
Shares to which the Holders are entitled on the full exercise of their
conversion rights in accordance with the provisions hereof.

2.9 If any Common Shares reserved or to be reserved for the purpose of
conversion of the Series D Preferred Shares hereunder, require registration with
or approval of any governmental authority under any Canadian or Provincial law
before such shares may be validly issued upon conversion, the Corporation will
take such action as may be necessary to secure such registration or approval, as
the case may be.

                                      -65-
<PAGE>

                                    ARTICLE 3
                                   Redemption

3.1 Subject to the provisions of any applicable law and to the provision of the
conditions to the Preferred Shares as a class relating to liquidation,
dissolution, winding up and distribution of assets, the Corporation may, at its
option, redeem the Series D Preferred Shares in whole at any time or in part
from time to time in such manner as the Directors shall determine on payment of
the Redemption Price for each such share to be redeemed.

3.2 A Notice of Redemption shall be given by the Corporation not less than 15
days prior to the date fixed for redemption to each Holder of Series D Preferred
Shares to be redeemed. Accidental failure or omission to give such notice to one
or more of such Holders shall not affect the validity of such redemption. On and
after the Redemption Date, the Corporation shall pay or cause to be paid to or
to the order of the Holders of the Series D Preferred Shares to be redeemed the
Redemption Price on presentation and surrender at the place of redemption of the
respective certificates representing such shares. Such payment shall be made by
cheque drawn on a Canadian chartered bank and payable at par at any branch in
Canada of such bank. Such shares in respect of which the Redemption Price has
been paid as aforesaid shall thereupon be redeemed. If less than all the Series
D Preferred Shares represented by any certificate shall be redeemed, a new
certificate for the balance shall be issued. From and after the Redemption Date,
the Holders of the Series D Preferred Shares called for redemption shall cease
to be entitled to exercise any of the rights of Holders in respect thereof
unless payment of the Redemption Price shall not be made in accordance with the
foregoing provision, in which case the rights of the Holders shall remain
unimpaired. The Corporation shall have the right at any time after mailing a
Notice of Redemption to deposit the Redemption Price of the shares thereby
called for redemption, or such part thereof as at the time of deposit has not
been claimed by the shareholders entitled thereto, in any Canadian chartered
bank or trust company in Canada specified in the Notice of Redemption or in a
subsequent notice to the Holders in respect of which the deposit is made, in a
special account for the Holders of such shares, and upon such deposit being made
or upon the Redemption Date, whichever is later, the Series D Preferred Shares
in respect of which such deposit shall have been made shall be deemed to be
redeemed and the rights of each Holder shall be limited to receiving, without
interest, his proportionate part of the Redemption Price so deposited upon
presentation and surrender of the certificates representing his shares so
redeemed. Any interest on such deposit shall belong to the Corporation.

                                    ARTICLE 4
                                  Voting Rights

4.1 Except as provided in the provisions attaching to the Preferred Shares as a
class, the Holders of Series D Preferred Shares shall not be entitled as such to
receive notice of or to attend or to vote at any meeting of shareholders of the
Corporation.

                                    ARTICLE 5
                                  Miscellaneous

5.1 The rights, privileges, restrictions and conditions attaching to the Series
D Preferred Shares may be repealed, altered, modified, amended or varied in
whole or in part only with the prior approval of the Holders given in the manner
provided in Section 5.2 in addition to any other

                                      -66-
<PAGE>

approval required by the Canada Business Corporations Act or any other
applicable statutory provision of like or similar effect, from time to time in
force.

5.2 The approval of the Holders with respect to any and all matters hereinbefore
referred to may be given by at least 66 2/3% of the votes cast at a meeting of
the Holders duly called for that purpose and held upon at least 21 days notice,
at which the Holders of a majority of the outstanding Series D Preferred Shares
are present or represented by proxy. If at any such meeting the Holders of a
majority of the outstanding Series D Preferred Shares are not present or
represented by proxy within one-half an hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being less than 30
days later and to such time and place as may be appointed by the chairman of the
meeting and not less than 21 days notice shall be given of such adjourned
meeting but it shall not be necessary in such notice to specify the purpose for
which the meeting was originally called. At such adjourned meeting the Holders
present or represented by proxy shall constitute a quorum and may transact the
business for which the meeting was originally called and a resolution passed
thereat by not less than 66 2/3% of the votes cast at such adjourned meeting
shall be effective notwithstanding that the Holders of a majority of the Series
D Preferred Shares are not present or represented by proxy and the conduct
thereof shall be from time to time prescribed by the by-laws of the Corporation
with respect to meetings of shareholders. On every poll taken at every such
meeting or adjourned meeting every Holder shall be entitled to one vote in
respect of each Series D Preferred Share held by him.

5.3 Any notice required or permitted to be given to a Holder shall be mailed by
letter, postage prepaid, or delivered to such Holder at his address as it
appears on the records of the Corporation or in the event of the address of any
such Holder not so appearing then to the last known address of such Holder. The
accidental failure to give notice to one or more of such shareholders shall not
affect the validity of any action requiring the giving of notice by the
Corporation. Any notice given as aforesaid shall be deemed to be given on the
date upon which it is mailed or delivered.

                                      -67-
<PAGE>

PART 7 - SERIES E CONVERTIBLE REDEEMABLE PREFERRED SHARES
---------------------------------------------------------

A. The directors of the Corporation hereby fix the number of shares for the
sixth series of the Preferred Shares at 149,600 shares;

B. The directors of the Corporation hereby determine that the designation of the
sixth series of the Preferred Shares is Series E Convertible Redeemable
Preferred Shares (hereinafter called the "Series E Preferred Shares") and that
the rights, privileges, restrictions and conditions attaching to the Series E
Preferred Shares (in addition to the rights, privileges, conditions,
restrictions, limitations and prohibitions attaching to the Preferred Shares as
a class) shall be as follows:

                                    ARTICLE 1
                                 Interpretation

1.1 Definitions
    -----------

"Business Day" means any day other than a Saturday, Sunday or statutory holiday;

"close of business" means the normal closing hour of the principal office in the
City of Toronto of the transfer agent and registrar;

"Common Shares" means the Common Shares of the Corporation;

"Conversion Rate" at any date means one Common Share per Series E Preferred
Share unless such rate has been adjusted in accordance with the provisions of
Section 2.4;

"Directors" means the board of directors of the Corporation and reference
without more to action by the Directors shall mean action by the Directors as a
board or by any authorized committee thereof;

"herein", "hereto", "hereunder", "hereof", "hereby" and similar expressions mean
or refer to these Series E Preferred Share provisions and not to any particular
Section, subsection, subdivision or portion hereof, and the expressions
"Article", "Section" and "subsection", followed by a number and/or letter mean
and refer to the specified Article, Section or subsection hereof;

"Holder" means the registered holder of any Series E Preferred Shares;

"Notice of Redemption" means a notice in writing given, as hereinafter provided,
by the Corporation to the holders of Series E Preferred Shares setting forth the
Redemption Price, the place at which redemption is to take place, and, if part
only of the Series E Preferred Shares is to be redeemed, the number thereof to
be redeemed;

"Redemption Date" means the date fixed by the Directors for redemption of Series
E Preferred Shares set forth in the Notice of Redemption;

"Redemption Price" means $7.00 per Series E Preferred Share; and

"transfer agent and registrar" means the person or persons from time to time
appointed by the Directors as the transfer agent and registrar in Canada for the
Series E Preferred Shares.

                                      -68-
<PAGE>

1.2 Words importing the singular number only include the plural and vice versa
and words importing any gender include all genders.

1.3 All dollar amounts referred to herein shall be in lawful money of Canada.

1.4 The division of these Series E Preferred Share provisions into Articles,
Sections, subsections, clauses, subclauses or other subdivisions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation hereof.

1.5 In the event that any date upon or by which any action is required to be
taken by the Corporation hereunder is not a Business Day, then such action shall
be required to be taken on or by the next succeeding day which is a Business
Day.

                                    ARTICLE 2
                          Conversion into Common Shares

2.1 Each Series E Preferred Share shall be convertible at any time up to but not
after the close of business on May 20, 1992, into fully paid and non-assessable
Common Shares on the basis of one Common Share for each Series E Preferred Share
in respect of which the conversion privilege is exercised.

2.2 In order to exercise the conversion right, a Holder shall present and
surrender to the transfer agent and registrar the respective certificates
representing such Series E Preferred Shares together with written notice of
conversion (which shall be and be deemed to be irrevocable) signed by such
Holder stating that he elects to convert such Series E Preferred Shares. Such
notice of conversion shall also state the name or names (with addresses) in
which the certificate or certificates for Common Shares which shall be issuable
on such conversion shall be issued. If any of the Common Shares into which such
Series E Preferred Shares are to be converted are to be issued to a person or
persons other than the Holder of such Series E Preferred Shares, the signature
of such Holder of such notice of conversion shall be guaranteed in a manner
satisfactory to the transfer agent and registrar and such notice of conversion
shall be accompanied by payment to the transfer agent and registrar of any
transfer tax which may be payable by reason thereof. The date of receipt by the
transfer agent and registrar of certificates representing such Series E
Preferred Shares and such notice of conversion is herein referred to as the
"Date of Conversion" of such Series E Preferred Shares.

As promptly as practicable after the Date of Conversion, the Corporation shall
issue or cause to be issued and deliver or cause to be delivered to the Holder
who has exercised the conversion right of any Series E Preferred Shares, or on
his written order, a certificate or certificates in the name or names of the
person or persons specified in the applicable notice of conversion for the
number of Common Shares deliverable upon the conversion of such Series E
Preferred Shares. Such conversion shall be deemed to have been effected
immediately prior to the close of business on the Date of Conversion and at such
time the rights of the Holder of such Series E Preferred Shares as such Holder
shall, subject to the provisions of Section 2.4, cease and the person or persons
in whose name or names any certificate or certificates for Common Shares shall
be deliverable upon such conversion shall be deemed to have thereupon become the
holder or holders of record of the Common Shares represented thereby; provided,
however, that no exercise of the conversion right on any date when the share
transfer registers for Common Shares shall be closed shall be effective to
constitute the person or persons entitled to receive the

                                      -69-
<PAGE>

Common Shares upon such conversion as the holder or holders of record of such
Common Shares on such date, but such surrender shall be effective to constitute
the person or persons entitled to receive such Common Shares as the holder or
holders of record thereof for all purposes at the close of business on the next
succeeding day on which such share transfer registers are open.

Upon surrender to the transfer agent and registrar of any certificate
representing more than the number of Series E Preferred Shares which are to be
converted, the Holder thereof shall be entitled to receive, without expense to
such Holder, one or more new certificates for the number of unconverted Series E
Preferred Shares represented by the certificate surrendered.

2.3 Notwithstanding anything herein contained, the Corporation shall in no case
be required to issue a fraction of a Common Share upon the conversion of any
Series E Preferred Share. If any fractional interest in a Common Share would,
except for the provision of this Section, be deliverable upon the conversion of
any Series E Preferred Share, the Corporation shall issue or cause to be issued
to the Holder of such surrendered Series E Preferred Share a non-voting and
non-dividend bearing scrip certificate or certificates transferable by delivery
entitling the holder thereof and of other similar certificates aggregating one
full Common Share, upon surrender of such certificates for consolidation at such
place in Canada as may be designated therein, to obtain from the Corporation a
full Common Share and to receive a share certificate therefor, as well as a
further scrip certificate representing the excess, if any, over one full Common
Share of the scrip certificates surrendered for consolidation. Such scrip
certificates shall be in such form and shall be subject to such terms and
conditions as the Corporation may determine and shall provide that the same
shall be null and void on and after a date to be fixed by the Directors of the
Corporation, but no such date shall be less than one year following the date of
issue of the scrip certificate concerned. In lieu of issuing scrip certificates
as aforesaid, the Corporation may adjust any fractional interest of a Common
Share by the payment by cheque of an amount equal to the then current market
value of such fractional interest computed (to the nearest cent) on the basis of
the last board lot sale price on The Toronto Stock Exchange, on the trading day
next preceding the Conversion Date, or if the Common Shares are not listed on
The Toronto Stock Exchange, on such stock exchange on which the Common Shares
are listed as may be selected for such purpose by the Directors. If the Common
Shares are not listed on any stock exchange, the current market value of such
fractional interest shall be determined by the Directors.

2.4 The Conversion Rate and the number of Common Shares into which each Series E
Preferred Share may be converted shall be subject to adjustment from time to
time if and whenever at any time prior to May 20, 1992 the Corporation shall (i)
subdivide its outstanding Common Shares into a greater number of shares, or (ii)
consolidate its outstanding Common Shares into a lesser number of shares, the
Conversion Rate shall be proportionately adjusted so that a Holder who has not
exercised the conversion right prior to the effective date of such subdivision
or consolidation shall be entitled to receive and shall accept upon the exercise
of such right at any time on or after such record date or effective date, in
lieu of the number of Common Shares which he is otherwise entitled to receive at
the time he exercises the conversion right, the aggregate number of Common
Shares that such Holder would have been entitled to receive as a result of such
subdivision or consolidation if, on the record date or effective date thereof,
he had been the registered holder of the number of Common Shares that he is
otherwise entitled to receive at the time he exercises the conversion right.
Such adjustments shall be made successively whenever any event listed above
shall occur.

                                      -70-
<PAGE>

2.5 The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment in the Conversion Rate as above provided,
lodge with the transfer agent and registrar, a certificate of the chief
financial officer specifying the nature of the event requiring the adjustment
and the amount of the adjustment thereby necessitated and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based, which certificate and the amount of the adjustment therein
specified shall be verified by an opinion of the Corporation's auditors and,
when so verified shall be conclusive and binding on all parties in interest. The
Corporation shall forthwith give notice of such adjustment to each Holder, which
notice shall specify the Conversion Rate after such adjustment and the event
requiring such adjustment.

2.6 In the event of any reclassification of or change in the Common Shares
(other than a change as a result of a subdivision or consolidation, or in the
event of any amalgamation of the Corporation with, or merger of the Corporation
into, any other corporation (other than an amalgamation or merger in which the
Corporation is the continuing corporation and which does not result in any
reclassification or change of the Common Shares), or in the event of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation, the Holder of each Series E Preferred Share then outstanding shall
be entitled to receive and shall accept upon the conversion of a Series E
Preferred Share at any time on the effective date or thereafter (until the
expiration of the conversion right of such Holder), in lieu of the Common Shares
which he is otherwise entitled to receive at the time he exercises the
conversion right, the kind and amount of shares and other securities and
property that such Holder would have been entitled to receive as a result of
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition if, on the effective date thereof, he had been the registered holder
of the number of Common Shares that he is otherwise entitled to receive at the
time he exercises the conversion right, subject to such adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article. The provisions of this Section 2.6 shall similarly apply to
successive reclassifications, changes, amalgamations, mergers, sales, transfers
or other dispositions.

2.7 All Series E Preferred Shares surrendered upon the exercise of the
conversion right shall be cancelled by the transfer agent and registrar and the
number thereof shall not be restored to the status of authorized but unissued
shares.

2.8 As a condition precedent to the taking of any action which would require an
adjustment to the Conversion Rate, the Corporation shall take any corporate
action which may, in the opinion of counsel, be necessary in order that the
Corporation shall have unissued and reserved the number of authorized Common
Shares to which the Holders are entitled on the full exercise of their
conversion rights in accordance with the provisions hereof.

2.9 If any Common Shares reserved or to be reserved for the purpose of
conversion of the Series E Preferred Shares hereunder, require registration with
or approval of any governmental authority under any Canadian or Provincial law
before such shares may be validly issued upon conversion, the Corporation will
take such action as may be necessary to secure such registration or approval, as
the case may be.

                                      -71-
<PAGE>

                                    ARTICLE 3
                                   Redemption

3.1 Subject to the provisions of any applicable law and to the provision of the
conditions to the Preferred Shares as a class relating to liquidation,
dissolution, winding up and distribution of assets, the Corporation may, at its
option, redeem the Series E Preferred Shares in whole at any time or in part
from time to time in such manner as the Directors shall determine on payment of
the Redemption Price for each such share to be redeemed.

3.2 A Notice of Redemption shall be given by the Corporation not less than 15
days prior to the date fixed for redemption to each Holder of Series E Preferred
Shares to be redeemed. Accidental failure or omission to give such notice to one
or more of such Holders shall not affect the validity of such redemption. On and
after the Redemption Date, the Corporation shall pay or cause to be paid to or
to the order of the Holders of the Series E Preferred Shares to be redeemed the
Redemption Price on presentation and surrender at the place of redemption of the
respective certificates representing such shares. Such payment shall be made by
cheque drawn on a Canadian chartered bank and payable at par at any branch in
Canada of such bank. Such shares in respect of which the Redemption Price has
been paid as aforesaid shall thereupon be redeemed. If less than all the Series
E Preferred Shares represented by any certificate shall be redeemed, a new
certificate for the balance shall be issued. From and after the Redemption Date,
the Holders of the Series E Preferred Shares called for redemption shall cease
to be entitled to exercise any of the rights of Holders in respect thereof
unless payment of the Redemption Price shall not be made in accordance with the
foregoing provision, in which case the rights of the Holders shall remain
unimpaired. The Corporation shall have the right at any time after mailing a
Notice of Redemption to deposit the Redemption Price of the shares thereby
called for redemption, or such part thereof as at the time of deposit has not
been claimed by the shareholders entitled thereto, in any Canadian chartered
bank or trust company in Canada specified in the Notice of Redemption or in a
subsequent notice to the Holders in respect of which the deposit is made, in a
special account for the Holders of such shares, and upon such deposit being made
or upon the Redemption Date, whichever is later, the Series E Preferred Shares
in respect of which such deposit shall have been made shall be deemed to be
redeemed and the rights of each Holder shall be limited to receiving, without
interest, his proportionate part of the Redemption Price so deposited upon
presentation and surrender of the certificates representing his shares so
redeemed. Any interest on such deposit shall belong to the Corporation.

                                    ARTICLE 4
                                  Voting Rights

4.1 Except as provided in the provisions attaching to the Preferred Shares as a
class, the Holders of Series E Preferred Shares shall not be entitled as such to
receive notice of or to attend or to vote at any meeting of shareholders of the
Corporation.

                                    ARTICLE 5
                                  Miscellaneous

5.1 The rights, privileges, restrictions and conditions attaching to the Series
E Preferred Shares may be repealed, altered, modified, amended or varied in
whole or in part only with the prior approval of the Holders given in the manner
provided in Section 5.2 in addition to any other

                                      -72-
<PAGE>

approval required by the Canada Business Corporations Act or any other
applicable statutory provision of like or similar effect, from time to time in
force.

5.2 The approval of the Holders with respect to any and all matters hereinbefore
referred to may be given by at least 66 2/3% of the votes cast at a meeting of
the Holders duly called for that purpose and held upon at least 21 days' notice,
at which the Holders of a majority of the outstanding Series E Preferred Shares
are present or represented by proxy. If at any such meeting the Holders of a
majority of the outstanding Series E Preferred Shares are not present or
represented by proxy within one-half an hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being less than 30
days later and to such time and place as may be appointed by the chairman of the
meeting and not less than 21 days' notice shall be given of such adjourned
meeting but it shall not be necessary in such notice to specify the purpose for
which the meeting was originally called. At such adjourned meeting the Holders
present or represented by proxy shall constitute a quorum and may transact the
business for which the meeting was originally called and a resolution passed
thereat by not less than 66 2/3% of the votes cast at such adjourned meeting
shall be effective notwithstanding that the Holders of a majority of the Series
E Preferred Shares are not present or represented by proxy and the conduct
thereof shall be from time to time prescribed by the by-laws of the Corporation
with respect to meetings of shareholders. On every poll taken at every such
meeting or adjourned meeting every Holder shall be entitled to one vote in
respect of each Series E Preferred Share held by him.

5.3 Any notice required or permitted to be given to a Holder shall be mailed by
letter, postage prepaid, or delivered to such Holder at his address as it
appears on the records of the Corporation or in the event of the address of any
such Holder not so appearing then to the last known address of such Holder. The
accidental failure to give notice to one or more of such shareholders shall not
affect the validity of any action requiring the giving of notice by the
Corporation. Any notice given as aforesaid shall be deemed to be given on the
date upon which it is mailed or delivered.

                                      -73-
<PAGE>

PART 8 - SERIES F CONVERTIBLE REDEEMABLE PREFERRED SHARES
---------------------------------------------------------

A. The directors of the Corporation hereby fix the number of shares for the
seventh series of the Preferred Shares at 220,000 shares;

B. The directors of the Corporation hereby determine that the designation of the
seventh series of the Preferred Shares is Series F Convertible Redeemable
Preferred Shares (hereinafter called the "Series F Preferred Shares") and that
the rights, privileges, restrictions and conditions attaching to the Series F
Preferred Shares (in addition to the rights, privileges, conditions,
restrictions, limitations and prohibitions attaching to the Preferred Shares as
a class) shall be as follows:

                                    ARTICLE 1
                                 Interpretation

1.1 Definitions
    -----------

"Business Day" means any day other than a Saturday, Sunday or statutory holiday;

"close of business" means the normal closing hour of the principal office in the
City of Toronto of the transfer agent and registrar;

"Common Shares" means the Common Shares of the Corporation;

"Conversion Rate" at any date means one Common Share per Series F Preferred
Share unless such rate has been adjusted in accordance with the provisions of
Section 2.4;

"Directors" means the board of directors of the Corporation and reference
without more to action by the Directors shall mean action by the Directors as a
board or by any authorized committee thereof;

"herein", "hereto", "hereunder", "hereof", "hereby" and similar expressions mean
or refer to these Series F Preferred Share provisions and not to any particular
Section, subsection, subdivision or portion hereof, and the expressions
"Article", "Section" and "subsection", followed by a number and/or letter mean
and refer to the specified Article, Section or subsection hereof;

"Holder" means the registered holder of any Series F Preferred Shares;

"Notice of Redemption" means a notice in writing given, as hereinafter provided,
by the Corporation to the holders of Series F Preferred Shares setting forth the
Redemption Price, the place at which redemption is to take place, and, if part
only of the Series F Preferred Shares is to be redeemed, the number thereof to
be redeemed;

"Redemption Date" means the date fixed by the Directors for redemption of Series
F Preferred Shares set forth in the Notice of Redemption;

"Redemption Price" means $3.40 per Series F Preferred Share; and

"transfer agent and registrar" means the person or persons from time to time
appointed by the Directors as the transfer agent and registrar in Canada for the
Series E Preferred Shares.

                                      -74-
<PAGE>

1.2 Words importing the singular number only include the plural and vice versa
and words importing any gender include all genders.

1.3 All dollar amounts referred to herein shall be in lawful money of Canada.

1.4 The division of these Series F Preferred Share provisions into Articles,
Sections, subsections, clauses, subclauses or other subdivisions and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation hereof.

1.5 In the event that any date upon or by which any action is required to be
taken by the Corporation hereunder is not a Business Day, then such action shall
be required to be taken on or by the next succeeding day which is a Business
Day.

                                    ARTICLE 2
                          Conversion into Common Shares

2.1 Each Series F Preferred Share shall be convertible at any time up to but not
after the close of business on January 11, 1992, into fully paid and
non-assessable Common Shares on the basis of one Common Share for each Series F
Preferred Share in respect of which the conversion privilege is exercised.

2.2 In order to exercise the conversion right, a Holder shall present and
surrender to the transfer agent and registrar the respective certificates
representing such Series F Preferred Shares together with written notice of
conversion (which shall be and be deemed to be irrevocable) signed by such
Holder stating that he elects to convert such Series F Preferred Shares. Such
notice of conversion shall also state the name or names (with addresses) in
which the certificate or certificates for Common Shares which shall be issuable
on such conversion shall be issued. If any of the Common Shares into which such
Series F Preferred Shares are to be converted are to be issued to a person or
persons other than the Holder of such Series F Preferred Shares, the signature
of such Holder of such notice of conversion shall be guaranteed in a manner
satisfactory to the transfer agent and registrar and such notice of conversion
shall be accompanied by payment to the transfer agent and registrar of any
transfer tax which may be payable by reason thereof. The date of receipt by the
transfer agent and registrar of certificates representing such Series F
Preferred Shares and such notice of conversion is herein referred to as the
"Date of Conversion" of such Series F Preferred Shares.

As promptly as practicable after the Date of Conversion, the Corporation shall
issue or cause to be issued and deliver or cause to be delivered to the Holder
who has exercised the conversion right of any Series F Preferred Shares, or on
his written order, a certificate or certificates in the name or names of the
person or persons specified in the applicable notice of conversion for the
number of Common Shares deliverable upon the conversion of such Series F
Preferred Shares. Such conversion shall be deemed to have been effected
immediately prior to the close of business on the Date of Conversion and at such
time the rights of the Holder of such Series F Preferred Shares as such Holder
shall, subject to the provisions of Section 2.4, cease and the person or persons
in whose name or names any certificate or certificates for Common Shares shall
be deliverable upon such conversion shall be deemed to have thereupon become the
holder or holders of record of the Common Shares represented thereby; provided,
however, that no exercise of the conversion right on any date when the share
transfer registers for Common Shares shall be closed shall be effective to
constitute the person or persons entitled to receive the

                                      -75-
<PAGE>

Common Shares upon such conversion as the holder or holders of record of such
Common Shares on such date, but such surrender shall be effective to constitute
the person or persons entitled to receive such Common Shares as the holder or
holders of record thereof for all purposes at the close of business on the next
succeeding day on which such share transfer registers are open.

Upon surrender to the transfer agent and registrar of any certificate
representing more than the number of Series F Preferred Shares which are to be
converted, the Holder thereof shall be entitled to receive, without expense to
such Holder, one or more new certificates for the number of unconverted Series F
Preferred Shares represented by the certificate surrendered.

2.3 Notwithstanding anything herein contained, the Corporation shall in no case
be required to issue a fraction of a Common Share upon the conversion of any
Series F Preferred Share. If any fractional interest in a Common Share would,
except for the provision of this Section, be deliverable upon the conversion of
any Series F Preferred Share, the Corporation shall issue or cause to be issued
to the Holder of such surrendered Series F Preferred Share a non-voting and
non-dividend bearing scrip certificate or certificates transferable by delivery
entitling the holder thereof and of other similar certificates aggregating one
full Common Share, upon surrender of such certificates for consolidation at such
place in Canada as may be designated therein, to obtain from the Corporation a
full Common Share and to receive a share certificate therefor, as well as a
further scrip certificate representing the excess, if any, over one full Common
Share of the scrip certificates surrendered for consolidation. Such scrip
certificates shall be in such form and shall be subject to such terms and
conditions as the Corporation may determine and shall provide that the same
shall be null and void on and after a date to be fixed by the Directors of the
Corporation, but no such date shall be less than one year following the date of
issue of the scrip certificate concerned. In lieu of issuing scrip certificates
as aforesaid, the Corporation may adjust any fractional interest of a Common
Share by the payment by cheque of an amount equal to the then current market
value of such fractional interest computed (to the nearest cent) on the basis of
the last board lot sale price on The Toronto Stock Exchange, on the trading day
next preceding the Conversion Date, or if the Common Shares are not listed on
The Toronto Stock Exchange, on such stock exchange on which the Common Shares
are listed as may be selected for such purpose by the Directors. If the Common
Shares are not listed on any stock exchange, the current market value of such
fractional interest shall be determined by the Directors.

2.4 The Conversion Rate and the number of Common Shares into which each Series F
Preferred Share may be converted shall be subject to adjustment from time to
time if and whenever at any time prior to January 11, 1992 the Corporation shall
(i) subdivide its outstanding Common Shares into a greater number of shares, or
(ii) consolidate its outstanding Common Shares into a lesser number of shares,
the Conversion Rate shall be proportionately adjusted so that a Holder who has
not exercised the conversion right prior to the effective date of such
subdivision or consolidation shall be entitled to receive and shall accept upon
the exercise of such right at any time on or after such record date or effective
date, in lieu of the number of Common Shares which he is otherwise entitled to
receive at the time he exercises the conversion right, the aggregate number of
Common Shares that such Holder would have been entitled to receive as a result
of such subdivision or consolidation if, on the record date or effective date
thereof, he had been the registered holder of the number of Common Shares that
he is otherwise entitled to receive at the time he exercises the conversion
right. Such adjustments shall be made successively whenever any event listed
above shall occur.

                                      -76-
<PAGE>

2.5 The Corporation shall from time to time immediately after the occurrence of
any event which requires an adjustment in the Conversion Rate as above provided,
lodge with the transfer agent and registrar, a certificate of the chief
financial officer specifying the nature of the event requiring the adjustment
and the amount of the adjustment thereby necessitated and setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based, which certificate and the amount of the adjustment therein
specified shall be verified by an opinion of the Corporation's auditors and,
when so verified shall be conclusive and binding on all parties in interest. The
Corporation shall forthwith give notice of such adjustment to each Holder, which
notice shall specify the Conversion Rate after such adjustment and the event
requiring such adjustment.

2.6 In the event of any reclassification of or change in the Common Shares
(other than a change as a result of a subdivision or consolidation, or in the
event of any amalgamation of the Corporation with, or merger of the Corporation
into, any other corporation (other than an amalgamation or merger in which the
Corporation is the continuing corporation and which does not result in any
reclassification or change of the Common Shares), or in the event of any sale,
transfer or other disposition of all or substantially all of the assets of the
Corporation, the Holder of each Series F Preferred Share then outstanding shall
be entitled to receive and shall accept upon the conversion of a Series F
Preferred Share at any time on the effective date or thereafter (until the
expiration of the conversion right of such Holder), in lieu of the Common Shares
which he is otherwise entitled to receive at the time he exercises the
conversion right, the kind and amount of shares and other securities and
property that such Holder would have been entitled to receive as a result of
such reclassification, change, amalgamation, merger, sale, transfer or other
disposition if, on the effective date thereof, he had been the registered holder
of the number of Common Shares that he is otherwise entitled to receive at the
time he exercises the conversion right, subject to such adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in
this Article. The provisions of this Section 2.6 shall similarly apply to
successive reclassifications, changes, amalgamations, mergers, sales, transfers
or other dispositions.

2.7 All Series F Preferred Shares surrendered upon the exercise of the
conversion right shall be cancelled by the transfer agent and registrar and the
number thereof shall not be restored to the status of authorized but unissued
shares.

2.8 As a condition precedent to the taking of any action which would require an
adjustment to the Conversion Rate, the Corporation shall take any corporate
action which may, in the opinion of counsel, be necessary in order that the
Corporation shall have unissued and reserved the number of authorized Common
Shares to which the Holders are entitled on the full exercise of their
conversion rights in accordance with the provisions hereof.

2.9 If any Common Shares reserved or to be reserved for the purpose of
conversion of the Series F Preferred Shares hereunder, require registration with
or approval of any governmental authority under any Canadian or Provincial law
before such shares may be validly issued upon conversion, the Corporation will
take such action as may be necessary to secure such registration or approval, as
the case may be.

                                      -77-
<PAGE>

                                    ARTICLE 3
                                   Redemption

3.1 Subject to the provisions of any applicable law and to the provision of the
conditions to the Preferred Shares as a class relating to liquidation,
dissolution, winding up and distribution of assets, the Corporation may, at its
option, redeem the Series F Preferred Shares in whole at any time or in part
from time to time in such manner as the Directors shall determine on payment of
the Redemption Price for each such share to be redeemed.

3.2 A Notice of Redemption shall be given by the Corporation not less than 15
days prior to the date fixed for redemption to each Holder of Series F Preferred
Shares to be redeemed. Accidental failure or omission to give such notice to one
or more of such Holders shall not affect the validity of such redemption. On and
after the Redemption Date, the Corporation shall pay or cause to be paid to or
to the order of the Holders of the Series F Preferred Shares to be redeemed the
Redemption Price on presentation and surrender at the place of redemption of the
respective certificates representing such shares. Such payment shall be made by
cheque drawn on a Canadian chartered bank and payable at par at any branch in
Canada of such bank. Such shares in respect of which the Redemption Price has
been paid as aforesaid shall thereupon be redeemed. If less than all the Series
F Preferred Shares represented by any certificate shall be redeemed, a new
certificate for the balance shall be issued. From and after the Redemption Date,
the Holders of the Series F Preferred Shares called for redemption shall cease
to be entitled to exercise any of the rights of Holders in respect thereof
unless payment of the Redemption Price shall not be made in accordance with the
foregoing provision, in which case the rights of the Holders shall remain
unimpaired. The Corporation shall have the right at any time after mailing a
Notice of Redemption to deposit the Redemption Price of the shares thereby
called for redemption, or such part thereof as at the time of deposit has not
been claimed by the shareholders entitled thereto, in any Canadian chartered
bank or trust company in Canada specified in the Notice of Redemption or in a
subsequent notice to the Holders in respect of which the deposit is made, in a
special account for the Holders of such shares, and upon such deposit being made
or upon the Redemption Date, whichever is later, the Series F Preferred Shares
in respect of which such deposit shall have been made shall be deemed to be
redeemed and the rights of each Holder shall be limited to receiving, without
interest, his proportionate part of the Redemption Price so deposited upon
presentation and surrender of the certificates representing his shares so
redeemed. Any interest on such deposit shall belong to the Corporation.

                                    ARTICLE 4
                                  Voting Rights

4.1 Except as provided in the provisions attaching to the Preferred Shares as a
class, the Holders of Series F Preferred Shares shall not be entitled as such to
receive notice of or to attend or to vote at any meeting of shareholders of the
Corporation.

                                    ARTICLE 5
                                  Miscellaneous

5.1 The rights, privileges, restrictions and conditions attaching to the Series
F Preferred Shares may be repealed, altered, modified, amended or varied in
whole or in part only with the prior approval of the Holders given in the manner
provided in Section 5.2 in addition to any other

                                      -78-
<PAGE>

approval required by the Canada Business Corporations Act or any other
applicable statutory provision of like or similar effect, from time to time in
force.

5.2 The approval of the Holders with respect to any and all matters hereinbefore
referred to may be given by at least 66 2/3% of the votes cast at a meeting of
the Holders duly called for that purpose and held upon at least 21 days' notice,
at which the Holders of a majority of the outstanding Series F Preferred Shares
are present or represented by proxy. If at any such meeting the Holders of a
majority of the outstanding Series F Preferred Shares are not present or
represented by proxy within one-half an hour after the time appointed for such
meeting, then the meeting shall be adjourned to such date being less than 30
days later and to such time and place as may be appointed by the chairman of the
meeting and not less than 21 days' notice shall be given of such adjourned
meeting but it shall not be necessary in such notice to specify the purpose for
which the meeting was originally called. At such adjourned meeting the Holders
present or represented by proxy shall constitute a quorum and may transact the
business for which the meeting was originally called and a resolution passed
thereat by not less than 66 2/3% of the votes cast at such adjourned meeting
shall be effective notwithstanding that the Holders of a majority of the Series
F Preferred Shares are not present or represented by proxy and the conduct
thereof shall be from time to time prescribed by the by-laws of the Corporation
with respect to meetings of shareholders. On every poll taken at every such
meeting or adjourned meeting every Holder shall be entitled to one vote in
respect of each Series E Preferred Share held by him.

5.3 Any notice required or permitted to be given to a Holder shall be mailed by
letter, postage prepaid, or delivered to such Holder at his address as it
appears on the records of the Corporation or in the event of the address of any
such Holder not so appearing then to the last known address of such Holder. The
accidental failure to give notice to one or more of such shareholders shall not
affect the validity of any action requiring the giving of notice by the
Corporation. Any notice given as aforesaid shall be deemed to be given on the
date upon which it is mailed or delivered.

                                      -79-

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