Document:

EXHIBIT 10.2

THIS  CONVERTIBLE NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS  AMENDED,  OR ANY STATE  SECURITIES  OR BLUE SKY  LAWS,  AND MAY NOT BE SOLD,
OFFERED  FOR  SALE,  TRANSFERRED,  PLEDGED,  OR  HYPOTHECATED  UNLESS  IT  IS SO
REGISTERED OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.

                           MILITARY RESALE GROUP, INC.
                               8% CONVERTIBLE NOTE

Principal Amount:   $50,000                                       August 7, 2002

         MILITARY RESALE GROUP,  INC., a New York  corporation  (the "Company"),
for value  received,  hereby  promises to pay to Eastern  Investment  Trust,  or
assigns  ("Holder"),  on July 30, 2003,  the principal  amount of Fifty Thousand
Dollars  ($50,000)  (or so much  thereof  as shall  not  have  been  prepaid  or
surrendered  for  conversion)  in such coin or currency of the United  States of
America  as at the time of  payment  shall be legal  tender  for the  payment of
public and private  debts,  together  with  interest  (computed  on the basis of
360-day year of twelve  30-day  months) on the unpaid  portion of the  principal
amount  hereof at the annual  rate of eight  percent  (8%) from the date  hereof
until the date such unpaid  portion of such  principal  amount shall have become
due and payable.

         Section 1.        DEFINITIONS.

                  Section 1.01. TERMS DEFINED. The terms defined in this Section
1.01  (except as herein  otherwise  expressly  provided  or unless  the  context
otherwise  requires)  for all purposes of this  Convertible  Note shall have the
respective meanings specified in this Section 1.01.

                  COMMON  STOCK.  The term "Common  Stock"  means  shares of the
Company's  Common  Stock,  par value $.0001 per share.

                  COMPANY. The term "Company" means MILITARY RESALE GROUP, INC.,
a New York corporation, and any  successor corporation to the Company (including
the corporation surviving any subsequent merger).

                  CURRENT CONVERSION PRICE. The term "Current Conversion  Price"
means the Conversion Price as most recently adjusted pursuant to Section 3.06.

                  EVENT OF DEFAULT.  The term "Event of Default" means any event
specified in Section  2.01,  continued for the period of time, if any, and after
the giving of notice, if any, therein designated.

                                       8
<PAGE>

                  MATURITY.  The term  "Maturity" when used with respect to this
Convertible Note means the date on which the principal (and premium,  if any) of
this Convertible Note becomes due and payable as herein provided, whether at (a)
July 30, 2003, (b) declaration of acceleration or (c) otherwise.

                  REGISTRATION  STATEMENT.  The  term  "Registration  Statement"
means a  Registration  Statement  on Form  SB-2  filed by the  Company  with the
Securities and Exchange  Commission pursuant to which the shares of Common Stock
issuable  upon  conversion of this  Convertible  Note are  registered  under the
Securities Act.

                  SECURITIES ACT. The term "Securities Act" means the Securities
Act of 1933, as amended.

         Section 2.        REMEDIES.

                  Section 2.01. EVENTS OF DEFAULT.  An "Event of Default" occurs
if one or more of the  following  shall  happen (for any reason  whatsoever  and
whether such  happening  shall be voluntary or  involuntary  or come about or be
effected by operation of law or pursuant to or in compliance  with any judgment,
decree  or  order  of  any  court  or  any  order,  rule  or  regulation  of any
administrative or governmental body):

                           (a)      if default  be made in the  punctual payment
of the principal of (or premium,  if any) or interest on this  Convertible  Note
when and as the same shall become due and payable; or

                           (b)      the  Registration  Statement is not declared
effective by the  Securities and Exchange  Commission on or before  December 30,
2002, or such  Registration  Statement does not remain effective for at least 90
days; or

                           (c)      the   Company   pursuant  to or  within  the
meaning of any Bankruptcy  Law: (i) commences a voluntary case, (ii) consents to
the entry of an order for relief against it in an involuntary case, (iii) to the
appointment  of a Custodian of it or for any  substantial  part of its property,
(iv) makes a general assignment for the benefit of its creditors; or

                           (d)      a court of competent jurisdiction  enters an
order or decree under any  Bankruptcy  Law that:  (i) is for relief  against the
Company in an involuntary  case, (ii) appoints a Custodian of the Company or for
any  substantial  part of its  property,  (iii)  orders the  liquidation  of the
Company; and the order or decree remains unstayed and in effect for 30 days.

                  The term  "Bankruptcy  Law" means Title 11,  U.S.  Code or any
similar  federal or state law for the relief of  debtors.  The term  "Custodian"
means any  receiver,  trustee,  assignee,  liquidator,  sequestrator  or similar
official under any Bankruptcy Law.

                  Section 2.02. REMEDIES.  In case any one or more of the Events
of Default specified in Section 2.01 shall have occurred and be continuing,  the
Holder of this Convertible

                                       9
<PAGE>

Note may proceed to protect and enforce its rights by suit in equity,  action at
law or by other  appropriate  proceedings  or  both,  whether  for the  specific
performance of any covenant or agreement  contained in this  Convertible Note or
in aid of the exercise of any power  granted in this  Convertible  Note,  or may
proceed to enforce the payment of this  Convertible Note or to enforce any other
legal or equitable right of the Holder of this Convertible Note.

                  Section 2.03. REMEDIES CUMULATIVE.  No remedy herein conferred
upon the Holder of this  Convertible  Note is  intended to be  exclusive  of any
other remedy and each and every such remedy shall be cumulative  and shall be in
addition to every other remedy given  hereunder or now or hereafter  existing at
law or in equity or by statute or otherwise.

                  Section  2.04.  ENFORCEMENT.  If there  shall be any  Event of
Default under this Convertible Note and this Convertible Note shall be placed in
the hands of an  attorney  for  collection,  or shall be  collected  through any
court,  including any bankruptcy court, the Company promises to pay to the order
of the Holder  hereof the Holder's  reasonable  attorneys'  fees and court costs
incurred in  collecting  or  attempting  to collect or securing or attempting to
secure this  Convertible  Note or enforcing the holder's  rights with respect to
any collateral securing this Convertible Note, to the extent allowed by the laws
of the  State of New York or any  state in which  any  collateral  for this Note
shall be situated.

         Section 3.         CONVERSION.

                  Section 3.01.     RIGHT OF CONVERSION, CONVERSION PRICE.

                            Subject to and upon  compliance  with the provisions
of this Section 3,  following  the date the  Registration  Statement is declared
effective by the Securities and Exchange  Commission,  the Holder shall have the
right,  at his option,  at any time during usual  business  hours to convert the
principal and accrued interest of this Convertible Note owned by the Holder into
fully paid and  nonassessable  shares of Common Stock that have been  registered
under the Securities Act pursuant to the Registration  Statement, at the rate of
$0.50 of principal  for each share of Common Stock  (provided,  that the closing
price per share of Common Stock,  as reported on the OTC Bulletin  Board, on the
date of conversion,  is at least $0.75 per share,  or if such price is less than
$0.75 per share, a proportionate  reduction to the $0.50 price,  but in no event
less than $0.25 per share,  so that the Holder will be able to immediately  sell
such  shares on the OTC  Bulletin  Board and receive a 50% rate of return on the
principal amount of this Note) (the "Conversion  Price"),  which price per share
shall be payable by surrender of this Convertible Note.

                  Section 3.02.     MANNER OF EXERCISE.

                            (a)     In order to exercise the  conversion  right,
the Holder of this Convertible Note shall surrender this Convertible Note at the
office of the Company,  accompanied by written notice to the Company stating (i)
that the Holder  elects to convert  this  Convertible  Note or, if less than the
entire principal amount of this Convertible Note is to be converted, the portion
thereof (a multiple of $1,000) to be converted, and (ii) the name or names (with
addresses) in which the certificate or  certificates  for shares of Common Stock
issuable on

                                       10

<PAGE>

such conversion shall be issued.  Convertible  Notes  surrendered for conversion
shall be accompanied by proper assignment thereof to the Company or in blank for
transfer if the shares are to be issued in a name other than that of the Holder.

                            (b)     In the event this  Convertible Note which is
converted  in part only,  upon such  conversion  the Company  shall  execute and
deliver to the Holder, at the expense of the Company,  a new Convertible Note of
authorized denominations in principal amount equal to the unconverted portion of
this Convertible Note.

                  Section 3.03.     ISSUANCE  OF  SHARES   OF  COMMON  STOCK  ON
CONVERSION.

                            (a)     As promptly as practicable after the receipt
of such notice and the  surrender of this  Convertible  Note as  aforesaid,  the
Company shall issue, at its expense,  and shall deliver to the Holder, or on his
written  order,  at the  aforesaid  office of the Company (i) a  certificate  or
certificates  for the number of full shares of Common  Stock  issuable  upon the
conversion of this Convertible Note (or specified portion  thereof),  and (ii) a
certificate or certificates  for any fractional  shares of Common Stock issuable
upon conversion of this Convertible  Note (or specified  portion thereof) or, at
the Company's option, cash in lieu of scrip for any fraction of a share to which
the Holder is entitled upon conversion as provided in Section 3.05.

                            (b)     Such conversion shall be deemed to have been
effected  immediately  prior to the close of business  on the date  ("Conversion
Date") on which the  Company  shall  have  received  both  such  notice  and the
surrendered  Convertible  Note as aforesaid,  and at such time the rights of the
Holder of this  Convertible  Note shall cease and the Person or Persons in whose
name or names any certificate or  certificates  for shares of Common Stock shall
be issuable  upon such  conversion  shall be deemed to have become the holder or
the Holder of record of the shares represented thereby.

                            (c)     In  the  event this Convertible Note is con-
verted in whole or in part  into  shares of Common  Stock  pursuant  to  Section
3.01(b)  hereof,  the  certificates  representing  such shares shall  contain an
appropriate   legend  indicating  that  the  shares   represented   thereby  are
"restricted securities" within the meaning of the Securities Act, and may not be
transferred  unless registered under the Securities Act or transferred  pursuant
to an exemption therefrom.

                  Section 3.04.  NO  ADJUSTMENTS  FOR INTEREST OR DIVIDENDS.  No
payment or adjustment shall be made by or on behalf of the Company on account of
any interest  accrued on this  Convertible Note surrendered for conversion or on
account of any cash  dividends  on the shares of Common  Stock  issued upon such
conversion  which were  declared  for  payment to the Holder of shares of Common
Stock of record as of a date  prior to the  Conversion  Date.  All  payments  of
accrued  interest on this  Convertible  Note shall be made in cash or additional
stock at the Conversion Price, at the Holder's option.

                  Section 3.05.  FRACTIONAL SHARES. The Company,  at its option,
may  issue

                                       11

<PAGE>

fractional  shares of Common Stock upon any conversion of this  Convertible Note
or, in lieu of any fraction of a share of Common Stock to which any Holder would
otherwise be entitled  upon  conversion of this  Convertible  Note (or specified
portions thereof), the Company may pay a cash adjustment for such fraction in an
amount equal to same fraction of the Conversion Price per share.

                  Section 3.06.     ADJUSTMENT OF CONVERSION PRICE. The  Conver-
sion  Price shall be adjusted as set forth in this section.

                            (a)     In the event that the Company shall make any
distribution  of its assets upon or with respect to its shares of Common  Stock,
as a liquidating or partial  liquidating  dividend,  or other than as a dividend
payable out of earnings or any surplus legally available for dividends under the
laws  of the  state  of  incorporation  of  the  Company,  the  Holder  of  this
Convertible  Note,  upon the  exercise of his right to convert  after the record
date for such  distribution  or, in the absence of a record date, after the date
of such  distribution,  receive,  in addition to the shares  subscribed for, the
amount of such  assets  (or,  at the option of the  Company,  a sum equal to the
value  thereof  at the  time of  distribution  as  determined  by the  Board  of
Directors  in its sole  discretion)  which  would have been  distributed  to the
Holder if he had exercised his right to convert  immediately prior to the record
date for such  distribution  or, in the  absence of a record  date,  immediately
prior to the date of such distribution.

                            (b)     In  case  at any time the Company shall sub-
divide its  outstanding  shares of Common Stock into a greater number of shares,
the Current  Conversion  Price in effect  immediately  prior to such subdivision
shall be proportionately reduced and conversely,  in case the outstanding shares
of Common  Stock of the  Company  shall be  combined  into a  smaller  number of
shares,  the  Current  Conversion  Price  in  effect  immediately  prior to such
combination shall be proportionately increased.

                            (c)     If any capital  reorganization  or  reclass-
ification of the capital stock of the Company, or consolidation or merger of the
Company  with  another  corporation,  or the sale,  transfer  or lease of all or
substantially  all of its assets to another  corporation,  shall be  effected in
such a way that the  holder  of  shares of Common  Stock  shall be  entitled  to
receive  shares,  securities or assets with respect to or in exchange for shares
of Common Stock, then, as a condition of such reorganization,  reclassification,
consolidation,  merger or sale,  the  Company or such  successor  or  purchasing
corporation,  as the case may be, shall execute an amendment to this Convertible
Note  providing  that the Holder of this  Convertible  Note shall have the right
thereafter and until the expiration of the period of  convertibility  to convert
this Convertible  Note into the kind and amount of shares,  securities or assets
receivable upon such reorganization, reclassification,  consolidation, merger or
sale by a holder  of the  number  of shares of  Common  Stock  into  which  this
Convertible   Note  might  have  been  converted   immediately   prior  to  such
reorganization,  reclassification,  consolidation,  merger or sale,  subject  to
adjustments  which shall be as nearly  equivalent as may be  practicable  to the
adjustments provided for in this Section 3.

                            (d)     Upon such adjustment of the Conversion Price
pursuant to the

                                       12
<PAGE>

provisions of this Section 3.06, the number of shares  issuable upon  conversion
of this  Convertible  Note  shall be  adjusted  to the  nearest  full  amount by
multiplying a number equal to the Conversion Price in effect  immediately  prior
to such  adjustment  by the  number  of shares of  Common  Stock  issuable  upon
exercise of this  Convertible  Note  immediately  prior to such  adjustment  and
dividing the product so obtained by the adjusted Conversion Price.

                  Section 3.07.     COVENANT TO RESERVE SHARES FOR CONVERSION.

                            The  Company  covenants  that  it  will at all times
reserve and keep  available out of its authorized  shares of Common Stock,  such
number  of  shares  of  Common  Stock  as  shall  then be  deliverable  upon the
conversion of this  Convertible  Note. All shares of Common Stock which shall be
deliverable shall be duly and validly issued and fully paid and nonassessable.

                  Section 3.08. NOTICE OF CHANGE OF CONVERSION  PRICE.  Whenever
the Conversion Price is adjusted, as herein provided, the Company shall promptly
send to the Holder a certificate  of a firm of  independent  public  accountants
(who may be the accountants  regularly  employed by the Company) selected by the
Board of Directors  setting forth the Conversion Price after such adjustment and
setting forth a brief  statement of the facts  requiring such  adjustment.  Such
certificate shall be conclusive evidence of the correctness of such adjustment.

         Section 4.         MISCELLANEOUS.

                  Section 4.01. OPTIONAL PREPAYMENTS. The Company shall have the
privilege, at any time and from time to time prior to Maturity, upon at least 90
days prior written  notice to the Holder,  of prepaying this  Convertible  Note,
either  in  whole  or in  part,  by  payment  of the  principal  amount  of this
Convertible Note, or portion thereof to be prepaid, and accrued interest thereon
to the date of such prepayment,  without premium or penalty; provided,  however,
that nothing in this Section 4.01 shall prohibit the Holder from converting this
Convertible  Note in accordance  with Section 3 hereof after the date of receipt
of notice of prepayment  and prior to the date of receipt in cash of all amounts
to be prepaid.

                  Section 4.02.     GOVERNING  LAW. This Convertible  Note shall
be construed in accordance  with the laws of the State of New York applicable to
contracts entered into and to be performed wholly within said State.

                  Section  4.03.  SUCCESSORS  AND  ASSIGNS.  All the  covenants,
stipulations,  promises and agreements in this  Convertible Note contained by or
on behalf of the  Company  shall bind its  successors  and  assigns,  whether so
expressed or not.

                  Section  4.04.  COURSE OF  DEALING;  NO  WAIVER.  No course of
dealing  between  the Company  and the Holder  shall  operate as a waiver of any
right of the  Holder and no delay on the part of the  Holder in  exercising  any
right hereunder shall so operate.

                  Section  4.05.  WAIVER  OF  COMPLIANCE.  Any  term,  covenant,
agreement or condition  hereof may be amended,  or  compliance  therewith may be
waived (either generally or

                                       13
<PAGE>

in a particular  instance and either  retroactively  or  prospectively),  if the
Company shall have obtained the agreement or consent in writing of the Holder.

                  Section 4.06.     OTHER PROVISIONS. The Company waives demand,
presentment,  protest, notice of dishonor and any other form of notice, that may
be required to hold the Company liable on this Note.

         IN WITNESS WHEREOF, the undersigned has caused this Convertible Note to
be  signed  in  its  corporate  name  by  one of  its  officers  thereunto  duly
authorized, and to be dated as of the date first written above.

                                             MILITARY RESALE GROUP, INC.

                                             By: /s/ Edward T. Whelan
                                                 -------------------------------
                                                 Edward T. Whelan
                                                 Chief Executive Officer

                                       14<PAGE>
                                                                     Exhibit 4.5

                                   SCHEDULE A

                 PROVISIONS ATTACHING TO THE EXCHANGEABLE SHARES

         The Exchangeable Shares shall have the following rights, privileges,
         restrictions and conditions:

1.       INTERPRETATION

(1)      For the purposes of these share provisions:

         "AFFILIATE" of any person means any other person dealing directly or
         indirectly controlling, controlled by, or under common control of that
         person. For the purposes of this definition, "control" (including, with
         correlative meaning, the terms "controlled by" and "under common
         control of") as applied to any person, means the possession by another
         person, directly or indirectly, of the power to direct or cause the
         direction of the management and policies of that first mentioned
         person, whether through the ownership of voting securities, by contract
         or otherwise.

         "AGENCY" means any domestic or foreign court, tribunal, federal, state,
         provincial or local government or governmental agency or authority or
         other regulatory authority (including the TSX and the NYSE) or
         administrative agency or commission (including the Ontario Securities
         Commission and the SEC) or any elected or appointed public official.

         "AGENT" means any chartered bank or trust company in Canada selected by
         the Corporation for the purposes of holding some or all of the
         Liquidation Amount or Redemption Price in accordance with section 5 or
         section 7, respectively.

         "BOARD OF DIRECTORS" means the board of directors of the Corporation.

         "BLACK-OUT PERIOD" means the period beginning on the last day of each
         fiscal quarter of LCE and ending at 5:00 p.m. (Toronto time) on the
         first business day following the public announcement of LCE's operating
         results for such fiscal quarter (inclusive).

         "BUSINESS DAY" means any day on which commercial banks are open for
         business in Toronto, Ontario and New York, New York other than a
         Saturday, a Sunday or a day observed as a holiday in Toronto, Ontario
         under the laws of the Province of Ontario or the federal laws of Canada
         or in New York, New York, under the laws of the State of New York or
         the federal laws of the United States of America.

         "CALLCO LLC" means Loews Cineplex U.S. Callco, LLC, a limited liability
         company incorporated under the laws of Delaware and a wholly-owned
         subsidiary of LCE.

         "CALLCO ULC" means Loews Cineplex Canada Callco, ULC an unlimited
         liability company incorporated under the laws of Nova Scotia and a
         wholly-owned subsidiary of LCE.

         "CALLCO CALL NOTICE" has the meaning ascribed thereto in section 6(3)
         of these share provisions.

         "CANADIAN DOLLAR EQUIVALENT" means, in respect of an amount expressed
         in a currency other than Canadian dollars (the "FOREIGN CURRENCY
         AMOUNT"), at any date, the product obtained by multiplying:

         (a)      the Foreign Currency Amount; by
<PAGE>
                                      -2-

         (b)      the noon spot exchange rate on such date for such foreign
                  currency expressed in Canadian dollars as reported by the Bank
                  of Canada or, in the event such spot exchange rate is not
                  available, such spot exchange rate on such date for such
                  foreign currency expressed in Canadian dollars as may be
                  deemed by the Board of Directors to be appropriate for such
                  purpose, which determination shall be conclusive and binding
                  on all persons.

         "COMMON SHARES" means the Class A Retractable Common Shares in the
         capital of the Corporation held.

         "CORPORATION" means Loews Cineplex Entertainment Corporation Canada, a
         corporation incorporated under the laws of Ontario.

         "CURRENT MARKET PRICE" means, in respect of a share of LCE Stock on any
         date, the Canadian Dollar Equivalent of the average of the closing
         prices of the shares of LCE Stock during a period of 20 consecutive
         trading days ending not more than three trading days before such date
         on the NYSE, or, if the shares of LCE Stock are not then listed on the
         NYSE, on such other stock exchange or automated quotation system on
         which the shares of LCE Stock are listed or quoted, as the case may be,
         as may be selected by the Board of Directors for such purpose;
         provided, however, that if in the opinion of the Board of Directors the
         public distribution or trading activity of the shares of LCE Stock
         during such period does not create a market that reflects the fair
         market value of the shares of LCE Stock, then the Current Market Price
         of a share of LCE Stock shall be determined by the Board of Directors,
         in good faith and in its sole discretion, and provided further that any
         such selection, opinion, or determination by the Board of Directors
         shall be conclusive and binding on all persons.

         "DIVIDEND AMOUNT" means an amount equal to, and in full satisfaction
         of, all declared and unpaid dividends on an Exchangeable Share held by
         a holder on any dividend record date which occurred prior to the date
         of purchase, redemption or other acquisition of such share by Callco
         ULC, Callco LLC or LCE from such holder pursuant to section 5(1),
         section 6(1) or section 7(1).

         "EXCHANGE RIGHT" has the meaning ascribed thereto in the Voting and
         Exchange Trust Agreement.

         "EXCHANGEABLE SHARES" means the non-voting, exchangeable shares in the
         capital of the Corporation, having the rights, privileges, restrictions
         and conditions set forth herein.

         "EXCHANGEABLE SHARE VOTING EVENT" means any matter in respect of which
         holders of Exchangeable Shares are entitled to vote as shareholders of
         the Corporation (other than an Exempt Exchangeable Share Voting Event)
         and excluding the exercise of voting rights through the Trustee.

         "EXEMPT EXCHANGEABLE SHARE VOTING EVENT" means any matter in respect of
         which holders of Exchangeable Shares are entitled to vote as
         shareholders of the Corporation in order to approve or disapprove, as
         applicable, any change to, or in the rights of the holders of, the
         Exchangeable Shares, where the approval or disapproval, as applicable,
         of such change would be required to maintain the economic equivalence
         of the Exchangeable Shares and the shares of LCE Stock.

         "HOLDER" means, when used with reference to the Exchangeable Shares, a
         holder of Exchangeable Shares shown from time to time in the register
         maintained by or on behalf of the Corporation in respect of the
         Exchangeable Shares.

         "INCLUDING" means "including without limitation" and "INCLUDES" means
         "includes without limitation".

         "LCE" means Loews Cineplex Entertainment Corporation, a corporation
         incorporated under the laws of Delaware and the parent company of
         Callco ULC and Callco LLC.

         "LCE CONTROL TRANSACTION" means any merger, amalgamation,
         reorganization, arrangement, take-over bid or tender offer, material
         sale of assets, shares or rights or interests therein or thereto or
         similar transactions or events involving LCE, or any proposal to do so.
<PAGE>
                                      -3-

         "LCE DIVIDEND DECLARATION DATE" means the date on which the board of
         directors of LCE declares any dividend or other distribution on the
         shares of LCE Stock that would require a corresponding payment or other
         distribution to be made in respect of the Exchangeable Shares.

         "LCE STOCK" means the Class A common stock of LCE and any other
         security into which such shares may be changed.

         "LIQUIDATION AMOUNT" has the meaning ascribed thereto in section 5(1)
         of these share provisions.

         "LIQUIDATION CALL RIGHT" has the meaning ascribed thereto in
         section 5(4) of these share provisions.

         "LIQUIDATION CALL PURCHASE PRICE" has the meaning ascribed thereto in
         section 5(4) of these share provisions.

         "LIQUIDATION DATE" has the meaning ascribed thereto in section 5(1) of
         these share provisions.

         "NULLIFIED SHARES" means those Exchangeable Shares acquired by LCE or
         its affiliates as a result of: (i) a holder's retraction of the
         Exchangeable Shares; (ii) the exercise of the Retraction Call Right;
         (iii) the redemption of Exchangeable Shares; (iv) the exercise of the
         Redemption Call Right; (v) the liquidation, dissolution or winding up
         of the Corporation; (vi) the exercise of the Liquidation Call Right;
         (vii) the exercise of the Exchange Right; or (viii) the exercise of the
         Automatic Exchange Right, all as contemplated by these share
         provisions, the Support Agreement and the Voting and Exchange Right
         Agreement.

         "NON-RESIDENT" has the meaning ascribed thereto in the Tax Act.

         "NYSE" means the New York Stock Exchange or its successor or, if the
         shares of LCE Stock are not then listed or admitted for trading on the
         NYSE, the principal exchange on which the shares of LCE Stock are then
         listed or admitted for trading, or if the shares of LCE Stock are not
         then listed or admitted for trading on any U.S. stock exchange but are
         quoted on the Nasdaq Stock Market's National Market, the Nasdaq Stock
         Market's National Market, or if the shares of LCE Stock are neither
         listed nor admitted to trading on any U.S. stock exchange nor quoted on
         the Nasdaq Stock Market's National Market, the over-the-counter market.

         "OBCA" means the Business Corporations Act (Ontario), as now in effect
         and as it may be amended from time to time.

         "OFFERING" means the initial public offering of the Exchangeable Shares
         by the Corporation.

         "PERSON" includes any individual, firm, partnership, limited
         partnership, joint venture, venture capital fund, limited liability
         company, unlimited liability company, association, trust, trustee,
         executor, administrator, legal personal representative, estate, group,
         body corporate, corporation, unincorporated association or
         organization, Agency, syndicate or other entity, whether or not having
         legal status.

         "PURCHASE PRICE" has the meaning ascribed thereto in section 6(3) of
         these share provisions.

         "REDEMPTION CALL RIGHT" has the meaning ascribed thereto in section
         7(4) of these share provisions.

         "REDEMPTION CALL PURCHASE PRICE" has the meaning ascribed thereto in
         section 7(4) of these share provisions.

                   "REDEMPTION DATE" means the date, if any, established by the
                   Board of Directors for the redemption by the Corporation of
                   all but not less than all of the outstanding Exchangeable
                   Shares pursuant to section 7 of these share provisions, which
                   date shall be no earlier than the _________ 2017, unless:

         (a)      there are fewer than _____ Exchangeable Shares outstanding
                  (other than Nullified Shares), as such number of shares may be
                  adjusted as deemed appropriate by the Board of Directors to
                  give effect to any subdivision or consolidation of, or stock
                  dividend on, the Exchangeable Shares, any issue or
                  distribution of rights to acquire Exchangeable Shares or
                  securities exchangeable for or
<PAGE>
                                      -4-

                   convertible into Exchangeable Shares, any issue or
                   distribution of other securities or rights or evidences of
                   indebtedness or assets, or any other capital reorganization
                   or other transaction affecting the Exchangeable Shares, in
                   which case the Board of Directors may accelerate such
                   redemption date to such date prior to _________, 2017 as it
                   may determine, upon at least 60 days' prior written notice to
                   the holders of the Exchangeable Shares and the Trustee;

         (b)      an LCE Control Transaction occurs, in which case, provided
                  that the Board of Directors determines, in good faith and in
                  its sole discretion, that it is not reasonably practicable to
                  substantially replicate the terms and conditions of the
                  Exchangeable Shares in connection with such LCE Control
                  Transaction and that the redemption of all but not less than
                  all of the outstanding Exchangeable Shares is necessary to
                  enable the completion of such LCE Control Transaction in
                  accordance with its terms, the Board of Directors may
                  accelerate such redemption date to such date prior to _______,
                  2017 as it may determine, upon such number of days' prior
                  written notice to the holders of the Exchangeable Shares and
                  the Trustee as the Board of Directors may determine to be
                  reasonably practicable in such circumstances (it being
                  understood, without limiting the discretion of the Board of
                  Directors to make the foregoing determinations, that the Board
                  of Directors shall be entitled to make the foregoing
                  determinations and accelerate such redemption date in
                  accordance with this clause if the potential acquiror informs
                  LCE that it is not willing to replicate the terms and
                  conditions of the Exchangeable Shares in the LCE Control
                  Transaction or indicates that its willingness to do so is
                  conditioned upon a modification of the terms of the LCE
                  Control Transaction);

         (c)      an Exchangeable Share Voting Event is proposed, in which case,
                  provided that the Board of Directors has determined, in good
                  faith and in its sole discretion, that it is not reasonably
                  practicable to accomplish the business purpose intended by the
                  Exchangeable Share Voting Event, which business purpose must
                  be bona fide and not for the primary purpose of causing the
                  occurrence of a Redemption Date, in any other commercially
                  reasonable manner that does not result in an Exchangeable
                  Share Voting Event, the Redemption Date shall be the business
                  day prior to the record date for any meeting or vote of the
                  holders of the Exchangeable Shares to consider the
                  Exchangeable Share Voting Event, and the Board of Directors
                  shall give such number of days' prior written notice of such
                  redemption to the registered holders of the Exchangeable
                  Shares and the Trustee as it may determine to be reasonably
                  practicable in such circumstances;

         (d)      an Exempt Exchangeable Share Voting Event is proposed and
                  holders of the Exchangeable Shares fail to take the necessary
                  action at a meeting or other vote of holders of Exchangeable
                  Shares to approve or disapprove, as applicable, the Exempt
                  Exchangeable Share Voting Event, in which case the Redemption
                  Date shall be the business day following the day on which the
                  holders of the Exchangeable Shares failed to take such action
                  and the Board of Directors shall give such number of days'
                  prior written notice of such possible redemption to the
                  registered holders of such Exchangeable Shares as the Board of
                  Directors may determine to be reasonably practicable in such
                  circumstances; or

         (e)      Canadian tax legislation is amended and becomes effective such
                  that the holding of shares of LCE Stock would not be
                  considered foreign property for the purposes of the Tax Act
                  and that the exchange of Exchangeable Shares for LCE Stock
                  would not be a taxable event for Canadian income tax purposes,
                  in which case the Board of Directors may accelerate such
                  Redemption Date to such date prior to _______, 2017 as it may
                  determine, upon at least 60 days' prior written notice to the
                  holders of the Exchangeable Shares and the Trustee;

         provided, however, that the accidental failure or omission to give any
         notice of redemption under clauses (a) through (e) above to less than
         10% of the holders of Exchangeable Shares shall not affect the validity
         of any such redemption.

         "REDEMPTION PRICE" has the meaning ascribed thereto in section 7(1) of
         these share provisions.

         "RETRACTED SHARES" has the meaning ascribed thereto in section 6(1)(a)
         of these share provisions.
<PAGE>
                                      -5-

         "RETRACTION CALL RIGHT" has the meaning ascribed thereto in
         section 6(1)(c) of these share provisions.

         "RETRACTION DATE" has the meaning ascribed thereto in section 6(1) of
         these share provisions.

         "RETRACTION PRICE" has the meaning ascribed thereto in section 6(1) of
         these share provisions.

         "RETRACTION REQUEST" has the meaning ascribed thereto in section 6(1)
         of these share provisions.

         "SEC" means the U.S. Securities and Exchange Commission.

         "SECURITIES ACT" means the Securities Act (Ontario) and the rules,
         regulations and policies, national instruments, notices and blanket
         rulings made thereunder, as amended.

         "SUPPORT AGREEMENT" means the agreement made among LCE, Callco ULC,
         Callco LLC and the Corporation pursuant to which LCE will agree to take
         any necessary steps to maintain the economic equivalency of the
         Exchangeable Shares and the shares of LCE Stock.

         "TAX ACT" means the Income Tax Act (Canada), as amended.

         "TRANSFER AGENT" means _______ or such other person as may from time to
         time be appointed by the Corporation as the registrar and transfer
         agent for the Exchangeable Shares.

         "TRUSTEE" means the trustee chosen by LCE to act as trustee under the
         Voting and Exchange Trust Agreement, being a corporation organized and
         existing under the laws of Canada or any Province thereof and
         authorized to carry on the business of a trust company in all the
         provinces of Canada, and any successor trustee appointed under the
         Voting and Exchange Trust Agreement.

         "TSX" means the Toronto Stock Exchange or its successor.

         "VOTING AND EXCHANGE TRUST AGREEMENT" means an agreement to be made
         among LCE, the Corporation and the Trustee in connection with the
         Offering pursuant to which one special share of voting stock of LCE
         will be held by the Trustee for the benefit of the holders of
         Exchangeable Shares.

2.       RANKING OF EXCHANGEABLE SHARES

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

3.       DIVIDENDS

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

         (a)      in the case of a cash dividend declared on the shares of LCE
                  Stock, the cash dividend in U.S. funds or in an amount equal
                  to the Canadian Dollar Equivalent of the cash dividend
                  declared on each share of LCE Stock on the LCE Dividend
                  Declaration Date;

         (b)      in the case of a stock dividend declared on the shares of LCE
                  Stock to be paid in shares of LCE Stock, by the issue or
                  transfer by the Corporation of such number of Exchangeable
                  Shares for each Exchangeable Share as is equal to the number
                  of shares of LCE Stock to be paid on each share of LCE Stock,
                  unless in lieu of such stock dividend the Corporation elects
                  to effect a corresponding and contemporaneous and economically
                  equivalent subdivision of the outstanding Exchangeable Shares
                  whereby each Exchangeable Share before the subdivision becomes
                  a number of
<PAGE>
                                      -6-

                  Exchangeable Shares as is equal to the sum of (i) a share of
                  LCE Stock and (ii) the number of shares of LCE Stock to be
                  paid as a stock dividend on each share of LCE Stock; or

         (c)      in the case of a dividend declared on the shares of LCE Stock
                  in property other than cash or shares of LCE Stock, in such
                  type and amount of property for each Exchangeable Share as is
                  the same as or economically equivalent (to be determined by
                  the Board of Directors as contemplated by section 3(5) hereof)
                  to the type and amount of property declared as a dividend on
                  each share of LCE Stock.

         Such dividends shall be paid out of money, assets or property of the
Corporation properly applicable to the payment of dividends, or out of
authorized but unissued shares of the Corporation, as applicable. The holders of
Exchangeable Shares shall not be entitled to any dividends other than or in
excess of the dividends referred to in this section 3(1).

         In the event the Board of Directors elects to effect a subdivision of
the outstanding Exchangeable Shares in accordance with paragraph 3(1)(b) above,
such subdivision shall become effective on the effective date for the dividend
declared on the shares of LCE Stock without any further act or formality on the
part of the Board of Directors or the holders of Exchangeable Shares. No
approval of the holders of Exchangeable Shares to an amendment to the articles
of the Corporation shall be required to give effect to such subdivision.

(2)      Cheques of the Corporation payable at par at any branch of the bankers
         of the Corporation shall be issued in respect of any cash dividends
         contemplated by section 3(1)(a) hereof and the sending of such cheque
         to each holder of an Exchangeable Share shall satisfy the cash dividend
         represented thereby unless the cheque is not paid on presentation.
         Certificates registered in the name of the registered holder of
         Exchangeable Shares shall be issued or transferred in respect of any
         stock dividends contemplated by section 3(1)(b) hereof and the sending
         of such a certificate to each holder of an Exchangeable Share shall
         satisfy the stock dividend represented thereby. Such other type and
         amount of property in respect of any dividends contemplated by section
         3(1)(c) hereof shall be issued, distributed or transferred by the
         Corporation in such manner as it shall determine and the issuance,
         distribution or transfer thereof by the Corporation to each holder of
         an Exchangeable Share shall satisfy the dividend represented thereby.
         No holder of an Exchangeable Share shall be entitled to recover by
         action or other legal process against the Corporation any dividend that
         is represented by a cheque that has not been duly presented to the
         Corporation's bankers for payment or that otherwise remains unclaimed
         for a period of six years from the date on which such dividend was
         payable.

(3)      The record date for the determination of the holders of Exchangeable
         Shares entitled to receive payment of, and the payment date for, any
         dividend declared on the Exchangeable Shares under section 3(1) hereof
         shall be the same dates as the record date and payment date,
         respectively, for the corresponding dividend declared on the shares of
         LCE Stock. The record date for the determination of the holders of
         Exchangeable Shares entitled to receive Exchangeable Shares in
         connection with any subdivision, redivision or change of the
         Exchangeable Shares under section 3(1)(b) hereof and the effective date
         of such subdivision shall be the same dates as the record and payment
         date, respectively, for the corresponding stock dividend declared on
         the shares of LCE Stock.

(4)      If on any payment date for any dividends declared on the Exchangeable
         Shares under section 3(1) hereof the dividends are not paid in full on
         all of the Exchangeable Shares then outstanding, any such dividends
         that remain unpaid shall be paid on a subsequent date or dates
         determined by the Board of Directors on which the Corporation shall
         have sufficient moneys, assets or property properly applicable to the
         payment of such dividends.

(5)      The Board of Directors shall determine, in good faith and in its sole
         discretion, economic equivalence for the purposes of these share
         provisions, including section 3(1) hereof, and each such determination
         shall be conclusive and binding on the Corporation and its
         shareholders. In making each such determination, the following factors
         shall, without excluding other factors determined by the Board of
         Directors to be relevant, be considered by the Board of Directors:

         (a)      in the case of any stock dividend or other distribution
                  payable in shares of LCE Stock, the number of such shares
                  issued in proportion to the number of shares of LCE Stock
                  previously outstanding;
<PAGE>
                                      -7-

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

         (c)      in the case of the issuance or distribution of any other form
                  of property (including any shares or securities of LCE of any
                  class other than shares of LCE Stock, any rights, options or
                  warrants other than those referred to in section 3(5)(b)
                  hereof, any evidences of indebtedness of LCE or any assets of
                  LCE) the relationship between the fair market value (as
                  determined by the Board of Directors in the manner above
                  contemplated) of such property to be issued or distributed
                  with respect to each outstanding share of LCE Stock and the
                  Current Market Price of a share of LCE Stock;

         (d)      in the case of any subdivision, redivision or change of the
                  then outstanding shares of LCE Stock into a greater number of
                  shares of LCE Stock or the reduction, combination,
                  consolidation or change of the then outstanding shares of LCE
                  Stock into a lesser number of shares of LCE Stock or any
                  amalgamation, merger, reorganization or other transaction
                  affecting shares of LCE Stock, the effect thereof upon the
                  then outstanding shares of LCE Stock; and

         (e)      in all such cases, whether the general taxation consequences
                  of the relevant event to holders of Exchangeable Shares may
                  differ from the taxation consequences to holders of shares of
                  LCE Stock as a result of differences between taxation laws of
                  Canada and the United States (except for any differing
                  consequences arising as a result of differing marginal
                  taxation rates and without regard to the individual
                  circumstances of holders of Exchangeable Shares), and if such
                  differences exist, whether any change can be made to the
                  relevant event that would reduce or remove such differences,
                  provided that any such change shall not, in the sole
                  discretion of the board of directors, have any negative
                  financial impact on LCE.

4.       CERTAIN RESTRICTIONS

         So long as any of the Exchangeable Shares are outstanding, the
Corporation shall not at any time without, but may at any time with, the
approval of the holders of the Exchangeable Shares given as specified in
section 9(2) of these share provisions:

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

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

         (c)      redeem or purchase any other shares of the Corporation ranking
                  equally with the Exchangeable Shares with respect to the
                  payment of dividends or the distribution of assets in the
                  event of the liquidation, dissolution or winding-up of the
                  Corporation, whether voluntary or involuntary, or any other
                  distribution of the assets of the Corporation among its
                  shareholders for the purpose of winding up its affairs;

         (d)      issue any Exchangeable Shares other than: (i) pursuant to any
                  shareholder rights plan or equity incentive plan adopted by
                  the Board of Directors; (ii) by way of stock dividend to the
                  holders of such Exchangeable Shares; or (iii) by way of any
                  subdivision of Exchangeable Shares under the provisions of
                  paragraph 3(1)(b) herein; or

         (e)      issue any shares of the Corporation ranking equally with, or
                  superior to, the Exchangeable Shares other than by way of
                  stock dividends to the holders of such Exchangeable Shares.

         The restrictions in section 4(a), (b), (c) and (d) hereof shall not
apply at any time when all the dividends on the outstanding Exchangeable Shares
corresponding to dividends declared and paid to date on the shares of LCE Stock
shall have been declared and paid on the Exchangeable Shares.
<PAGE>
                                      -8-

5.       DISTRIBUTION ON LIQUIDATION

(1)      In the event of the liquidation, dissolution or winding-up of the
         Corporation or any other distribution of the assets of the Corporation
         among its shareholders for the purpose of winding up its affairs,
         subject to the exercise by Callco ULC or Callco LLC of the Liquidation
         Call Right, a holder of Exchangeable Shares shall be entitled, subject
         to applicable law, to receive from the assets of the Corporation in
         respect of each Exchangeable Share held by such holder on the effective
         date (the "LIQUIDATION DATE") of such liquidation, dissolution,
         winding-up or other distribution, before any distribution of any part
         of the assets of the Corporation among the holders of the Common Shares
         or any other shares ranking junior to the Exchangeable Shares, an
         amount per share (the "LIQUIDATION AMOUNT") equal to the Current Market
         Price of a share of LCE Stock on the last business day prior to the
         Liquidation Date, which shall be satisfied in full by the Corporation
         delivering or causing to be delivered to such holder one share of LCE
         Stock (which on issue will be admitted to listing and trading by the
         NYSE (subject to official notice of issuance)), plus an amount equal to
         the Dividend Amount.

(2)      On or promptly after the Liquidation Date, and provided the Liquidation
         Call Right has not been exercised by Callco ULC or Callco LLC, the
         Corporation shall pay or cause to be paid to the holders of the
         Exchangeable Shares the Liquidation Amount for each such Exchangeable
         Share upon presentation and surrender of the certificates representing
         such Exchangeable Shares, together with such other documents and
         instruments as may be required to effect a transfer of Exchangeable
         Shares under the OBCA and the articles and by-laws of the Corporation
         and such additional documents, instruments and payments as the Transfer
         Agent or the Corporation may reasonably require, at the registered
         office of the Corporation or at any office of the Transfer Agent as may
         be specified by the Corporation by notice to the holders of the
         Exchangeable Shares. Payment of the Liquidation Amount for such
         Exchangeable Shares shall be made by transferring or causing to be
         transferred to each holder the shares of LCE Stock to which such holder
         is entitled and by delivering to such holder, at the address of such
         holder recorded in the register of shareholders of the Corporation for
         the Exchangeable Shares or by holding for pick-up by such holder at the
         registered office of the Corporation or at any office of the Transfer
         Agent as may be specified by the Corporation by notice to the holders
         of Exchangeable Shares, on behalf of the Corporation certificates
         representing shares of LCE Stock (which shares shall be duly issued as
         fully paid and shall be free and clear of any lien, claim or
         encumbrance other than any lien, claim or encumbrance imposed by the
         action of a holder of Exchangeable Shares or its affiliates) and a
         cheque of the Corporation payable at par at any branch of the bankers
         of the Corporation in respect of the Dividend Amount, in each case less
         any amounts withheld on account of tax required to be deducted and
         withheld therefrom. On and after the Liquidation Date, the holders of
         the Exchangeable Shares shall cease to be holders of such Exchangeable
         Shares and shall not be entitled to exercise any of the rights of
         holders in respect thereof (including any rights under the Voting and
         Exchange Trust Agreement), other than the right to receive the
         Liquidation Amount, unless payment of the total Liquidation Amount for
         such Exchangeable Shares shall not be made upon presentation and
         surrender of share certificates in accordance with the foregoing
         provisions, in which case the rights of the holders shall remain
         unaffected until the Liquidation Amount has been paid in the manner
         hereinbefore provided. The Corporation shall have the right at any time
         after the Liquidation Date to transfer or cause to be issued or
         transferred to, and deposited in a custodial account with, the Agent
         the Liquidation Amount in respect of the Exchangeable Shares
         represented by certificates that have not at the Liquidation Date been
         surrendered by the holders thereof, such Liquidation Amount to be held
         by the Agent as trustee for and on behalf of, and for the use and
         benefit of, such holders. Upon such deposit being made, the rights of a
         holder of Exchangeable Shares after such deposit shall be limited to
         receiving its proportionate part of the Liquidation Amount for such
         Exchangeable Shares so deposited, without interest, and when received
         by the Agent, all dividends and other distributions with respect to the
         shares of LCE Stock to which such holder is entitled with a record date
         after the date of such deposit and before the date of transfer of such
         shares of LCE Stock to such holder (in each case less any amounts
         withheld on account of tax required to be deducted and withheld
         therefrom) against presentation and surrender of the certificates for
         the Exchangeable Shares held by them in accordance with the foregoing
         provisions.

(3)      After the Corporation has satisfied its obligations to pay the holders
         of the Exchangeable Shares the Liquidation Amount per Exchangeable
         Share pursuant to section 5(1) of these share provisions, such holders
         shall not be entitled to share in any further distribution of the
         assets of the Corporation.
<PAGE>
                                      -9-

(4)      Callco ULC and Callco LLC shall each have the overriding right (the
         "LIQUIDATION CALL RIGHT"), in the event of and notwithstanding the
         proposed liquidation, dissolution or winding-up of the Corporation or
         any other distribution of the assets of the Corporation for the purpose
         of winding up its affairs pursuant to this Article 5, to purchase from
         all but not less than all of the holders of Exchangeable Shares (other
         than any holder of Nullified Shares) on the Liquidation Date all but
         not less than all of the Exchangeable Shares held by each such holder
         on payment by Callco ULC or Callco LLC, as the case may be, to each
         such holder of an amount per Exchangeable Share (the "LIQUIDATION CALL
         PURCHASE PRICE") equal to the sum of (i) the Current Market Price of a
         share of LCE Stock on the last business day prior to the Liquidation
         Date, which shall be satisfied in full by Callco ULC or Callco LLC, as
         the case may be, delivering or causing to be delivered to such holder
         one share of LCE Stock plus (ii) any Dividend Amount. In the event of
         the exercise of the Liquidation Call Right by Callco ULC or Callco LLC,
         as the case may be, each holder (other than holders of Nullified
         Shares) shall be obligated to sell all the Exchangeable Shares held by
         the holder to Callco ULC or Callco LLC, as the case may be, on the
         Liquidation Date on payment by Callco ULC or Callco LLC, as the case
         may be, to the holder of the Liquidation Call Purchase Price for each
         such share, and the Corporation shall have no obligation to pay any
         Liquidation Call Purchase Price to the holders of such shares so
         purchased by Callco ULC or Callco LLC, as the case may be.

(5)      To exercise the Liquidation Call Right, Callco ULC or Callco LLC, as
         the case may be, must notify the Transfer Agent, as agent for the
         holders of Exchangeable Shares, and the Corporation of the intention of
         Callco ULC or Callco LLC, as the case may be, to exercise such right at
         least 45 days before the Liquidation Date in the case of a voluntary
         liquidation, dissolution or winding-up of the Corporation or any other
         distribution of the assets of the Corporation for the purpose of
         winding up its affairs and at least five business days before the
         Liquidation Date in the case of an involuntary liquidation, dissolution
         or winding-up of the Corporation. The Transfer Agent will notify the
         holders of Exchangeable Shares as to whether or not Callco ULC or
         Callco LLC has exercised the Liquidation Call Right forthwith after the
         expiry of the period during which the same may be exercised by Callco
         ULC or Callco LLC. If Callco ULC or Callco LLC exercises the
         Liquidation Call Right, then on the Liquidation Date, Callco ULC or
         Callco LLC, as the case may be, will purchase and the holders (other
         than holders of Nullified Shares) will sell all of the Exchangeable
         Shares then outstanding for a price per Exchangeable Share equal to the
         Liquidation Call Purchase Price. An exercise by Callco LLC of its
         Liquidation Call Right shall be conditional on the non-exercise of such
         right by Callco ULC, such that if both exercise the right, the exercise
         by Callco LLC shall not be effective and shall be deemed not to have
         occurred.

(6)      For the purposes of completing the purchase of the Exchangeable Shares
         pursuant to the Liquidation Call Right, Callco ULC or Callco LLC, as
         the case may be, shall deposit or cause to be deposited with the
         Transfer Agent, on or before the Liquidation Date, certificates
         representing the aggregate number of shares of LCE Stock deliverable by
         Callco ULC or Callco LLC, as the case may be, and a cheque or cheques
         of Callco ULC or Callco LLC, as the case may be, payable at par at any
         branch of the bankers of Callco ULC or Callco LLC, as the case may be,
         representing the aggregate Dividend Amount, if any, in payment of the
         total Liquidation Call Purchase Price for all holders of Exchangeable
         Shares (other than holders of Nullified Shares). Provided that Callco
         ULC or Callco LLC, as the case may be, has complied with the
         immediately preceding sentence, then on and after the Liquidation Date,
         each holder of Exchangeable Shares (other than holders of Nullified
         Shares) shall cease to be a holder of Exchangeable Shares and shall not
         be entitled to exercise any of the rights of a holder of Exchangeable
         Shares (including, without limitation, any rights under the Voting and
         Exchange Trust Agreement), other than the right to receive, without
         interest, its proportionate part of the total Liquidation Call Purchase
         Price payable by Callco ULC or Callco LLC, as the case may be, upon
         presentation and surrender by such holder of certificates representing
         the Exchangeable Shares held by such holder and the holder shall on and
         after the Liquidation Date be considered and deemed for all purposes to
         be the holder of the shares of LCE Stock to which it is entitled. Upon
         surrender to the Transfer Agent of a certificate or certificates
         representing Exchangeable Shares, together with such other documents
         and instruments as may be required to effect a transfer of Exchangeable
         Shares under the OBCA and the articles and by-laws of the Corporation
         and such additional documents, instruments and payments (including,
         without limitation, any applicable stamp taxes) as the Transfer Agent
         may reasonably require, the holder of such surrendered certificate or
         certificates shall be entitled to receive in exchange therefor, and the
         Transfer Agent on behalf of Callco ULC or Callco LLC, as the case may
         be, shall deliver to such holder, certificates representing the shares
         of LCE Stock to which the holder is entitled and a cheque or cheques of
         Callco ULC or Callco LLC, as the case may be, payable at par
<PAGE>
                                      -10-

         at any branch of the bankers of Callco ULC or Callco LLC, as the case
         may be, in payment of the remaining portion, if any, of the total
         Liquidation Call Purchase Price. If Callco ULC or Callco LLC does not
         exercise the Liquidation Call Right in the manner described above, on
         the Liquidation Date the holders of the Exchangeable Shares will be
         entitled to receive in exchange therefor the Liquidation Amount
         otherwise payable by the Corporation in connection with the
         liquidation, dissolution or winding-up of the Corporation or any other
         distribution of the assets of the Corporation for the purpose of
         winding up its affairs pursuant to this Article 5.

6.       RETRACTION OF EXCHANGEABLE SHARES BY HOLDER

(1)      A holder of Exchangeable Shares shall be entitled at any time, subject
         to the exercise by Callco ULC or Callco LLC of the Retraction Call
         Right and otherwise upon compliance with, and subject to, the
         provisions of this Article 6, to require the Corporation to redeem any
         or all of the Exchangeable Shares registered in the name of such holder
         on a date that is 15 business days after the date on which the
         Retraction Request is received by the Corporation (the "RETRACTION
         DATE"), for an amount per share equal to the Current Market Price of a
         share of LCE Stock on the last business day prior to the Retraction
         Date (the "RETRACTION PRICE"), which shall be satisfied in full by the
         Corporation delivering or causing to be delivered to such holder one
         share of LCE Stock (which on issue will be admitted to listing and
         trading by the NYSE (subject to official notice of issuance)) for each
         Exchangeable Share presented and surrendered by the holder together
         with, on the designated payment date therefor, the Dividend Amount.
         Notwithstanding the foregoing, the Corporation, in its sole discretion,
         may, but shall not be required to, redeem the Retracted Shares on a
         date that is less than 15 business days from the date on which it
         receives a Retraction Request. To effect such redemption, the holder
         shall present and surrender at the registered office of the Corporation
         or at any office of the Transfer Agent as may be specified by the
         Corporation by notice to the holders of Exchangeable Shares the
         certificate or certificates representing the Exchangeable Shares which
         the holder desires to have the Corporation redeem, together with
         documents, instruments and payments as the Transfer Agent or the
         Corporation may reasonably require, and together with a duly executed
         statement (the "RETRACTION REQUEST") in the form of Exhibit 1 hereto or
         in such other form as may be acceptable to the Corporation:

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

         (b)      acknowledging the overriding right (the "RETRACTION CALL
                  RIGHT") of Callco ULC and Callco LLC to purchase all but not
                  less than all the Retracted Shares directly from the holder
                  and that the Retraction Request shall be deemed to be a
                  revocable offer by the holder to sell the Retracted Shares to
                  Callco ULC or Callco LLC, as the case may be, in accordance
                  with the Retraction Call Right on the terms and conditions set
                  out in section 6(3) hereof.

(2)      Provided that Callco ULC or Callco LLC has not exercised the Retraction
         Call Right, upon receipt by the Corporation or the Transfer Agent in
         the manner specified in section 6(1) of a certificate or certificates
         representing the number of Retracted Shares, together with a Retraction
         Request, and provided that the Retraction Request is not revoked by the
         holder in the manner specified in section 6(7), the Corporation shall
         redeem the Retracted Shares effective at the close of business on the
         Retraction Date and shall transfer or cause to be issued or transferred
         to such holder the Retraction Price with respect to such shares plus
         the Dividend Amount, if any, and shall comply with section 6(4) hereof.
         If only a part of the Exchangeable Shares represented by any
         certificate is redeemed (or purchased by Callco ULC or Callco LLC, as
         the case may be, pursuant to the Retraction Call Right), a new
         certificate for the balance of such Exchangeable Shares shall be issued
         to the holder at the expense of the Corporation.

(3)      Subject to the provisions of this Article 6, upon receipt by the
         Corporation or the Transfer Agent of a Retraction Request, the
         Corporation shall immediately notify Callco ULC and Callco LLC thereof.
         In order to exercise the Retraction Call Right, Callco ULC or Callco
         LLC, as the case may be, must notify the Corporation of its
         determination to do so (the "CALLCO CALL NOTICE") within five business
         days of notification to Callco ULC and Callco LLC by the Corporation of
         the receipt by the Corporation of the Retraction Request. If Callco ULC
         or Callco LLC does not so notify the Corporation within such five
<PAGE>
                                      -11-

         business day period, the Corporation will notify the holder as soon as
         possible thereafter that Callco ULC and Callco LLC will not exercise
         the Retraction Call Right. If Callco ULC or Callco LLC delivers the
         Callco Call Notice within such five business day period, and provided
         that the Retraction Request is not revoked by the holder in the manner
         specified in section 6(7), the Retraction Request shall thereupon be
         considered only to be an offer by the holder to sell the Retracted
         Shares to Callco ULC or Callco LLC, as the case may be, in accordance
         with the Retraction Call Right. In such event, the Corporation shall
         not redeem the Retracted Shares and Callco ULC or Callco LLC, as the
         case may be, shall purchase from such holder and such holder shall sell
         to Callco ULC or Callco LLC, as the case may be, on the Retraction Date
         the Retracted Shares for a purchase price (the "PURCHASE PRICE") per
         share equal to the Retraction Price per share, plus, on the designated
         payment date therefor, to the extent not paid by the Corporation on the
         designated payment date therefor, any Dividend Amount. To the extent
         that Callco ULC or Callco LLC, as the case may be, pays the Dividend
         Amount in respect of the Retracted Shares, the Corporation shall no
         longer be obligated to pay any declared and unpaid dividends on such
         Retracted Shares. For the purpose of completing a purchase pursuant to
         the Retraction Call Right, on the Retraction Date, Callco ULC or Callco
         LLC, as the case may be, shall transfer or cause to be issued or
         transferred to the holder of the Retracted Shares the shares of LCE
         Stock to which such holder is entitled. Provided that Callco ULC or
         Callco LLC, as the case may be, has complied with the immediately
         preceding sentence and section 6(4) hereof, the closing of the purchase
         and sale of the Retracted Shares pursuant to the Retraction Call Right
         shall be deemed to have occurred as at the close of business on the
         Retraction Date and, for greater certainty, no redemption by the
         Corporation of such Retracted Shares shall take place on the Retraction
         Date. In the event that Callco ULC or Callco LLC does not deliver a
         Callco Call Notice within such five business day period, and provided
         that the Retraction Request is not revoked by the holder in the manner
         specified in section 6(7), the Corporation shall redeem the Retracted
         Shares on the Retraction Date and in the manner otherwise contemplated
         in this Article 6. An exercise by Callco LLC of its Retraction Call
         Right shall be conditional on the non-exercise of such right by Callco
         ULC, such that if both exercise the right, the exercise by Callco LLC
         shall not be effective and shall be deemed not to have occurred.

(4)      The Corporation or Callco ULC or Callco LLC, as the case may be, shall
         deliver or cause the Transfer Agent to deliver to the relevant holder,
         at the address of the holder recorded in the register of shareholders
         of the Corporation for the Exchangeable Shares or at the address
         specified in the holder's Retraction Request or by holding for pick-up
         by the holder at the registered office of the Corporation or at any
         office of the Transfer Agent as may be specified by the Corporation by
         notice to the holders of Exchangeable Shares, certificates representing
         the shares of LCE Stock (which shares shall be fully paid and shall be
         free and clear of any lien, claim or encumbrance and which on issue
         will be admitted to listing and trading by the NYSE (subject to
         official notice of issuance)) registered in the name of the holder or
         in such other name as the holder may request, and, if applicable and on
         or before the payment date therefor, a cheque payable at par at any
         branch of the bankers of the Corporation, Callco ULC or Callco LLC, as
         the case may be, as applicable, representing the aggregate Dividend
         Amount, in payment of the Retraction Price or Purchase Price, as the
         case may be, in each case less any amounts withheld on account of tax
         required to be deducted and withheld therefrom, and such delivery of
         such certificates and cheques on behalf of the Corporation, Callco ULC
         or Callco LLC, as the case may be, or by the Transfer Agent shall be
         deemed to be payment of and shall satisfy and discharge all liability
         for the Retraction Price or Purchase Price, as the case may be, to the
         extent that the same is represented by such share certificates and
         cheques (plus any tax deducted and withheld therefrom and remitted to
         the proper tax authority).

(5)      On and after the close of business on the Retraction Date, the holder
         of the Retracted Shares shall cease to be a holder of such Retracted
         Shares and shall not be entitled to exercise any of the rights of a
         holder in respect thereof (including any rights under the Voting and
         Exchange Trust Agreement), other than the right to receive the
         Retraction Price or Purchase Price, as the case may be, unless upon
         presentation and surrender of certificates in accordance with the
         foregoing provisions, payment of the Retraction Price, or Purchase
         Price, as the case may be, as provided in section 6(4) hereof is not
         made, in which case the rights of such holder shall remain unaffected
         until the Retraction Price or Purchase Price, as the case may be, has
         been paid in the manner hereinbefore provided. On and after the close
         of business on the Retraction Date, provided that presentation and
         surrender of certificates and payment of the Retraction Price or
         Purchase Price, as the case may be, has been made in accordance with
         the foregoing provisions, the holder of the Retracted Shares so
         redeemed by the Corporation or purchased by Callco ULC or Callco LLC
         shall thereafter be a holder of the shares of LCE Stock delivered to
         it.
<PAGE>
                                      -12-

(6)      Notwithstanding any other provision of this Article 6, the Corporation
         shall not be obligated to redeem Retracted Shares specified by a holder
         in a Retraction Request to the extent that such redemption of Retracted
         Shares would be contrary to solvency requirements or other provisions
         of applicable law. If the Corporation believes that on any Retraction
         Date it would be prohibited by any of such provisions to redeem the
         Retracted Shares tendered for redemption on such date, and provided
         that Callco ULC or Callco LLC shall not have exercised the Retraction
         Call Right with respect to the Retracted Shares, the Corporation shall
         only be obligated to redeem Retracted Shares specified by a holder in a
         Retraction Request to the extent of the maximum number that may be so
         redeemed (rounded down to a whole number of shares) as would not be
         contrary to such provisions and shall notify the holder and the Trustee
         at least two business days prior to the Retraction Date as to the
         number of Retracted Shares which will not be redeemed by the
         Corporation. In any case in which the Redemption by the Corporation of
         Retracted Shares would be contrary to solvency requirements or other
         provisions of applicable law, the Corporation shall redeem only those
         Retracted Shares in accordance with section 6(2) of these share
         provisions on a pro rata basis and shall issue to each holder of
         Retracted Shares a new certificate, at the expense of the Corporation,
         representing the Retracted Shares not redeemed by the Corporation
         pursuant to section 6(2) hereof. If the Corporation would otherwise be
         obligated to redeem the Retracted Shares pursuant to section 6(2) of
         these share provisions but is not obligated to do so as the result of
         solvency requirements or other provisions of applicable law, the
         Trustee, on behalf of the holders of Retracted Shares which the
         Corporation is not able to redeem as a result of solvency requirements
         or other provisions of applicable law, will, pursuant to the Exchange
         Right under the Voting and Exchange Trust Agreement require LCE to
         purchase such Retracted Shares held by such holder.

(7)      A holder of Retracted Shares may, by notice in writing given by the
         holder to the Corporation before the close of business on the business
         day immediately preceding the Retraction Date, withdraw its Retraction
         Request, in which event such Retraction Request shall be null and void
         and, for greater certainty, the revocable offer constituted by the
         Retraction Request to sell the Retracted Shares to Callco ULC or Callco
         LLC, as the case may be, shall be deemed to have been revoked.

(8)      If a Retraction Date would otherwise be scheduled to occur during the
         Black-out Period, the Retraction Request shall not be completed on that
         date, and shall be completed on the first business day following the
         Black-out Period, which date shall be the Retraction Date for such
         Retraction Request. Notwithstanding the foregoing, a Retraction Request
         may be completed during the Black-out Period if it relates to a holder
         exercising his, her or its Exchange Right under the Voting and Exchange
         Trust Agreement.

(9)      In the event the Retraction Date is expected to occur on the first
         business day after a Black-out Period, the Corporation shall be
         entitled to deliver a notice to the holders of the Retracted Shares no
         later than 9:00 a.m. (Toronto time) on the business day preceding the
         Retraction Date confirming that the retraction of the Retracted Shares
         will occur as at the close of business on the Retraction Date unless
         the holder delivers to the Corporation a notice of withdrawal in
         writing no later than 9:00 a.m. (Toronto time) on the Retraction Date
         and otherwise in accordance with section 6(7) of these share
         provisions.

7.       REDEMPTION OF EXCHANGEABLE SHARES BY THE CORPORATION

(1)      Subject to applicable law, and provided Callco ULC or Callco LLC has
         not exercised the Redemption Call Right, the Corporation shall on the
         Redemption Date redeem all but not less than all of the then
         outstanding Exchangeable Shares for an amount per share (the
         "REDEMPTION PRICE") equal to the Current Market Price of a share of LCE
         Stock on the last business day prior to the Redemption Date, which
         shall be satisfied in full by the Corporation causing to be delivered
         to each holder of Exchangeable Shares one share of LCE Stock for each
         Exchangeable Share held by such holder, together with an amount equal
         to the Dividend Amount.

(2)      In any case of a redemption of Exchangeable Shares under this Article
         7, the Corporation shall, at least 60 days prior to the Redemption Date
         (other than a Redemption Date established in connection with an LCE
         Control Transaction, an Exchangeable Share Voting Event or an Exempt
         Exchangeable Share Voting Event), send or cause to be sent to each
         holder of Exchangeable Shares a notice in writing of the proposed
         redemption by the Corporation or the purchase by Callco ULC or Callco
         LLC under the Redemption Call Right, as the case may be, of the
         Exchangeable Shares held by such holder. In the case of a Redemption
<PAGE>
                                      -13-

         Date established in connection with an LCE Control Transaction, an
         Exchangeable Share Voting Event or an Exempt Exchangeable Share Voting
         Event, the written notice of the redemption by the Corporation or the
         purchase by Callco ULC or Callco LLC under the Redemption Call Right,
         as the case may be, will be sent on or before the Redemption Date, on
         as many days prior written notice as may be determined by the Board of
         Directors to be reasonably practicable in the circumstances. In any
         such case, such notice shall set out the formula for determining the
         Redemption Price, the Redemption Date and, if applicable, particulars
         of the Redemption Call Right.

(3)      On or after the Redemption Date and provided that the Redemption Call
         Right has not been exercised by Callco ULC or Callco LLC, the
         Corporation shall pay or cause to be paid to the holders of the
         Exchangeable Shares to be redeemed the Redemption Price for each such
         Exchangeable Share, upon presentation and surrender at the registered
         office of the Corporation or at any office of the Transfer Agent as may
         be specified by the Corporation in such notice of the certificates
         representing such Exchangeable Shares, together with such other
         documents and instruments as may be required to effect a transfer of
         Exchangeable Shares under the OBCA and the articles of the Corporation
         and such additional documents, instruments and payments as the Transfer
         Agent or the Corporation may reasonably require. Payment of the
         Redemption Price for such Exchangeable Shares shall be made by
         transferring or causing to be issued or transferred to each holder the
         shares of LCE Stock to which such holder is entitled (which on issue
         will be admitted to listing and trading by the NYSE (subject to
         official notice of issuance)) and by delivering to such holder, at the
         address of such holder recorded in the register of shareholders of the
         Corporation for the Exchangeable Shares or by holding for pick-up by
         such holder at the registered office of the Corporation or at any
         office of the Transfer Agent as may be specified by the Corporation in
         such notice, on behalf of the Corporation certificates representing
         shares of LCE Stock (which shares shall be fully paid and shall be free
         and clear of any lien, claim or encumbrance), and, if applicable, a
         cheque of the Corporation payable at par at any branch of the bankers
         of the Corporation in payment of the Dividend Amount, in each case less
         any amounts withheld on account of tax required to be deducted and
         withheld therefrom. On and after the Redemption Date, the holders of
         the Exchangeable Shares called for redemption shall cease to be holders
         of such Exchangeable Shares and shall not be entitled to exercise any
         of the rights of holders in respect thereof (including any rights under
         the Voting and Exchange Trust Agreement), other than the right to
         receive the Redemption Price, unless payment of the Redemption Price
         for such Exchangeable Shares shall not be made upon presentation and
         surrender of certificates in accordance with the foregoing provisions,
         in which case the rights of the holders shall remain unaffected until
         the Redemption Price has been paid in the manner hereinbefore provided.
         The Corporation shall have the right at any time after the sending of
         notice of its intention to redeem the Exchangeable Shares as aforesaid
         to transfer or cause to be issued or transferred to, and deposited
         with, the Agent named in such notice the Redemption Price for the
         Exchangeable Shares (except as otherwise provided in this section 7(3))
         so called for redemption, or of such of the said Exchangeable Shares
         represented by certificates that have not at the date of such deposit
         been surrendered by the holders thereof in connection with such
         redemption, less any amounts withheld on account of tax required to be
         deducted and withheld therefrom, such aggregate Redemption Price to be
         held by the Agent as trustee for and on behalf of, and for the use and
         benefit of, such holders. Upon the later of such deposit being made and
         the Redemption Date, the Exchangeable Shares in respect whereof such
         deposit shall have been made shall be redeemed and the rights of the
         holders thereof after such deposit or Redemption Date, as the case may
         be, shall be limited to receiving their proportionate part of the
         aggregate Redemption Price for such Exchangeable Shares, without
         interest, and when received by the Agent, all dividends and other
         distributions with respect to the shares of LCE Stock to which such
         holder is entitled with a record date after the later of the date of
         such deposit and the Redemption Date and before the date of transfer of
         such shares of LCE Stock to such holder (in each case less any amounts
         withheld on account of tax required to be deducted and withheld
         therefrom), against presentation and surrender of the certificates for
         the Exchangeable Shares held by them in accordance with the foregoing
         provisions.

(4)      Callco ULC and Callco LLC shall each have the overriding right (the
         "REDEMPTION CALL RIGHT"), notwithstanding the proposed redemption of
         the Exchangeable Shares by the Corporation pursuant to this Article 7
         to purchase from all but not less than all of the holders of
         Exchangeable Shares (other than any holder of Nullified Shares) on the
         Redemption Date all but not less than all of the Exchangeable Shares
         held by each such holder on payment by Callco ULC or Callco LLC, as the
         case may be, to each such holder of an amount per Exchangeable Share
         (the "REDEMPTION CALL PURCHASE PRICE") equal to the sum of (i) the
         Current Market Price of a share of LCE Stock on the last business day
         prior to the Redemption
<PAGE>
                                      -14-

         Date, which shall be satisfied in full by Callco ULC or Callco LLC, as
         the case may be, delivering or causing to be delivered to such holder
         one share of LCE Stock, plus (ii) any Dividend Amount. In the event of
         the exercise of the Redemption Call Right by Callco ULC or Callco LLC,
         as the case may be, each holder (other than holders of Nullified
         Shares) shall be obligated to sell all the Exchangeable Shares held by
         the holder to Callco ULC or Callco LLC, as the case may be, on the
         Redemption Date on payment by Callco ULC or Callco LLC, as the case may
         be, to the holder of the Redemption Call Purchase Price for each such
         share, and the Corporation shall have no obligation to redeem, or to
         pay any Dividend Amount in respect of, such shares so purchased by
         Callco ULC or Callco LLC, as the case may be.

(5)      To exercise the Redemption Call Right, Callco ULC or Callco LLC, as the
         case may be, must notify the Transfer Agent, as agent for the holders
         of Exchangeable Shares, and the Corporation of the intention of Callco
         ULC or Callco LLC, as the case may be, to exercise such right at least
         60 days before the Redemption Date, except in the case of a redemption
         occurring as a result of an LCE Control Transaction, an Exchangeable
         Share Voting Event or an Exempt Exchangeable Share Voting Event, in
         which case Callco ULC or Callco LLC, as the case may be, shall so
         notify the Transfer Agent and the Corporation on or before the
         Redemption Date. The Transfer Agent will notify the holders of the
         Exchangeable Shares as to whether or not Callco ULC or Callco LLC, as
         the case may be, has exercised the Redemption Call Right forthwith
         after the expiry of the period during which the same may be exercised
         by Callco ULC or Callco LLC, as the case may be. If Callco ULC or
         Callco LLC, as the case may be, exercises the Redemption Call Right, on
         the Redemption Date, Callco ULC or Callco LLC, as the case may be, will
         purchase and the holders (other than holders of Nullified Shares) will
         sell all of the Exchangeable Shares then outstanding for a price per
         Exchangeable Share equal to the Redemption Call Purchase Price. An
         exercise by Callco LLC of its Redemption Call Right shall be
         conditional on the non-exercise of such right by Callco ULC, such that
         if both exercise the right, the exercise by Callco LLC shall not be
         effective and shall be deemed not to have occurred.

(6)      For the purposes of completing the purchase of the Exchangeable Shares
         pursuant to the Redemption Callco ULC or Callco LLC, as the case may
         be, shall deposit or cause to be deposited with the Transfer Agent, on
         or before the Redemption Date, certificates representing the aggregate
         number of shares of LCE Stock deliverable by Callco ULC or Callco LLC,
         as the case may be, and a cheque or cheques of Callco ULC or Callco
         LLC, as the case may be, payable at par at any branch of the bankers of
         Callco ULC or Callco LLC, as the case may be, representing the
         aggregate Dividend Amount, if any, in payment of the total Redemption
         Call Purchase Price for all holders of Exchangeable Shares (other than
         holders of Nullified Shares). Provided that Callco ULC or Callco LLC,
         as the case may be, has complied with the immediately preceding
         sentence, on and after the Redemption Date each holder of Exchangeable
         Shares (other than holders of Nullified Shares) shall cease to be a
         holder of the Exchangeable Shares and shall not be entitled to exercise
         any of the rights of holders of Exchangeable Shares (including, without
         limitation, any rights under the Voting and Exchange Trust Agreement),
         other than the right to receive, without interest, its proportionate
         part of the total Redemption Call Purchase Price payable by Callco ULC
         or Callco LLC, as the case may be, upon presentation and surrender by
         such holder of certificates representing the Exchangeable Shares held
         by such holder and the holder shall on and after the Redemption Date be
         considered and deemed for all purposes to be the holder of the shares
         of LCE Stock to which it is entitled. Upon surrender to the Transfer
         Agent of a certificate or certificates representing Exchangeable
         Shares, together with such other documents and instruments as may be
         required to effect a transfer of Exchangeable Shares under the OBCA and
         the articles of the Corporation and such additional documents,
         instruments and payments (including, without limitation, any applicable
         stamp taxes) as the Transfer Agent or the Corporation may reasonably
         require, the holder of such surrendered certificate or certificates
         shall be entitled to receive in exchange therefor, and the Transfer
         Agent on behalf of Callco ULC or Callco LLC, as the case may be, shall
         deliver to such holder, certificates representing the shares of LCE
         Stock to which the holder is entitled and a cheque or cheques of Callco
         ULC or Callco LLC, as the case may be, payable at par at any branch of
         the bankers of Callco ULC or Callco LLC, as the case may be, in payment
         of the remaining portion, if any, of the total Redemption Call Purchase
         Price. If Callco ULC or Callco LLC, as the case may be, does not
         exercise the Redemption Call Right in the manner described above, on
         the Redemption Date the holders of the Exchangeable Shares will be
         entitled to receive in exchange therefor the Redemption Price otherwise
         payable by the Corporation in connection with the redemption of the
         Exchangeable Shares pursuant to this Article 7 and together with
         accrued and unpaid dividends on such Exchangeable Shares held by the
         holder on any dividend record date prior to the Redemption Date.
<PAGE>
                                      -15-

8.       VOTING RIGHTS

         Except as required by applicable law and by section 9 hereof, the
holders of the Exchangeable Shares shall not be entitled as such to receive
notice of or to attend any meeting of the shareholders of the Corporation or to
vote at any such meeting. Without limiting the generality of the foregoing, the
holders of the Exchangeable Shares shall not have class votes except as required
by applicable law or these share provisions.

9.       AMENDMENT AND APPROVAL

(1)      The rights, privileges, restrictions and conditions attaching to the
         Exchangeable Shares contained herein may be added to, changed or
         removed only with the approval of the holders of the Exchangeable
         Shares given as hereinafter specified.

(2)      Any approval given by the holders of the Exchangeable Shares to add to,
         change or remove any right, privilege, restriction or condition
         attaching to the Exchangeable Shares or any other matter requiring the
         approval or consent of the holders of the Exchangeable Shares in
         accordance with applicable law shall be deemed to have been
         sufficiently given if it shall have been given in accordance with
         applicable law, subject to a minimum requirement that such approval or
         consent be evidenced by resolution passed by not less than two-thirds
         of the votes cast on such resolution at a meeting of holders of
         Exchangeable Shares duly called and held at which the holders of at
         least 25% of the outstanding Exchangeable Shares at that time are
         present or represented by proxy; provided that if at any such meeting
         the holders of at least 25% of the outstanding Exchangeable Shares at
         that time are not present or represented by proxy within one-half hour
         after the time appointed for such meeting, then the meeting shall be
         adjourned to such date not less than five days thereafter and to such
         time and place as may be designated by the Chairman of such meeting. At
         such adjourned meeting the holders of Exchangeable Shares present or
         represented by proxy thereat may transact the business for which the
         meeting was originally called and a resolution passed thereat by the
         affirmative vote of not less than two-thirds of the votes cast on such
         resolution at such meeting shall constitute the approval or consent of
         the holders of the Exchangeable Shares.

10.      RECIPROCAL CHANGES, ETC. IN RESPECT OF SHARES OF LCE STOCK

(1)      Each holder of an Exchangeable Share acknowledges that the Support
         Agreement provides, in part, that so long as any Exchangeable Shares
         (excluding Nullified Shares) are outstanding, LCE will not without the
         prior approval of the Corporation and the prior approval of the holders
         of the Exchangeable Shares given in accordance with section 9(2) of
         these share provisions:

         (a)      issue or distribute shares of LCE Stock (or securities
                  exchangeable for or convertible into shares of LCE Stock) to
                  the holders of all or substantially all of the then
                  outstanding shares of LCE Stock by way of stock dividend or
                  other distribution, other than an issue of shares of LCE Stock
                  (or securities exchangeable for or convertible into shares of
                  LCE Stock) to holders of shares of LCE Stock (i) who exercise
                  an option to receive dividends in shares of LCE Stock (or
                  securities exchangeable for or convertible into shares of LCE
                  Stock) in lieu of receiving cash dividends, or (ii) pursuant
                  to any dividend reinvestment plan or similar arrangement;
                  provided that, in either case, an equivalent option or plan is
                  available to holders of Exchangeable Shares;

         (b)      issue or distribute rights, options or warrants to the holders
                  of all or substantially all of the then outstanding shares of
                  LCE Stock entitling them to subscribe for or to purchase
                  shares of LCE Stock (or securities exchangeable for or
                  convertible into shares of LCE Stock); or

         (c)      issue or distribute to the holders of all or substantially all
                  of the then outstanding shares of LCE Stock:

                  (i)      shares or securities of LCE of any class other than
                           shares of LCE Stock (other than shares convertible
                           into or exchangeable for shares of LCE Stock);

                  (ii)     rights, options or warrants other than those referred
                           to in section 10(1)(b) above;
<PAGE>
                                      -16-

                  (iii)    evidence of indebtedness of LCE; or

                  (iv)     assets of LCE,

         unless the same or an economic equivalent (as determined by the Board
         of Directors) on a per share basis of such rights, options, securities,
         shares, evidences of indebtedness or other assets is issued or
         distributed simultaneously to holders of the Exchangeable Shares and at
         least seven days prior written notice thereof is given to the holders
         of Exchangeable Shares.

(2)      Each holder of an Exchangeable Share acknowledges that the Support
         Agreement further provides, in part, that so long as any Exchangeable
         Shares (excluding Nullified Shares) are outstanding, LCE will not
         without the prior approval of the Corporation and the prior approval of
         the holders of the Exchangeable Shares given in accordance
         with section 9(2) of these share provisions:

         (a)      subdivide, redivide or change the then outstanding shares of
                  LCE Stock into a greater number of shares of LCE Stock;

         (b)      reduce, combine, consolidate or change the then outstanding
                  shares of LCE Stock into a lesser number of shares of LCE
                  Stock; or

         (c)      reclassify or otherwise change the shares of LCE Stock or
                  effect an amalgamation, merger, reorganization or other
                  transaction affecting the shares of LCE Stock,

         unless the same or an economically equivalent change (as determined by
         the Board of Directors) shall simultaneously be made to, or in, the
         rights of the holders of the Exchangeable Shares and at least seven
         days prior written notice is given to the holders of Exchangeable
         Shares. The Support Agreement further provides, in part, that the
         aforesaid provisions of the Support Agreement shall not be changed
         without the approval of the holders of the Exchangeable Shares given in
         accordance with section 9(2) of these share provisions.

11.      ACTIONS BY THE CORPORATION UNDER SUPPORT AGREEMENT

(1)      The Corporation will take all such actions and do all such things as
         shall be necessary to perform and comply with and to ensure performance
         and compliance by LCE, Callco ULC, Callco LLC and the Corporation with
         all provisions of the Support Agreement applicable to LCE, Callco ULC,
         Callco LLC and the Corporation, respectively, in accordance with the
         terms thereof including taking all such actions and doing all such
         things as shall be necessary to enforce for the direct benefit of the
         Corporation all rights and benefits in favour of the Corporation under
         or pursuant to such agreement.

(2)      The Corporation shall not propose, agree to or otherwise give effect to
         any amendment to, or waiver or forgiveness of its rights or obligations
         under, the Support Agreement without the approval of the holders of the
         Exchangeable Shares given in accordance with section 9(2) of these
         share provisions other than such amendments, waivers and/or forgiveness
         as may be necessary or advisable for the purposes of:

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

         (b)      making such provisions or modifications not inconsistent with
                  such agreement as may be necessary or desirable with respect
                  to matters or questions arising thereunder which, in the good
                  faith opinion of the Board of Directors, it may be expedient
                  to make, provided that the Board of Directors shall be of the
                  good faith opinion, after consultation with counsel, that such
                  provisions and modifications will not be prejudicial to the
                  interests of the holders of the Exchangeable Shares; or

         (c)      making such changes in or corrections to such agreement which,
                  on the advice of counsel to the Corporation, are required for
                  the purpose of curing or correcting any ambiguity or defect or
                  inconsistent provision or clerical omission or mistake or
                  manifest error contained therein, provided
<PAGE>
                                      -17-

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

12.      LEGEND; CALL RIGHTS; WITHHOLDING RIGHTS

(1)      The certificates evidencing the Exchangeable Shares shall contain or
         have affixed thereto a legend in form and on terms approved by the
         Board of Directors, with respect to the Support Agreement, the
         Liquidation Call Right and the Redemption Call Right, the Voting and
         Exchange Trust Agreement (including the provisions with respect to the
         voting rights and automatic exchange thereunder) and the Retraction
         Call Right.

(2)      Each holder of an Exchangeable Share, whether of record or beneficial,
         by virtue of becoming and being such a holder shall be deemed to
         acknowledge each of the Liquidation Call Right, the Retraction Call
         Right and the Redemption Call Right, in each case, in favour of each of
         Callco ULC and Callco LLC and the overriding nature thereof in
         connection with the liquidation, dissolution or winding-up of the
         Corporation or any other distribution of the assets of the Corporation
         among its shareholders for the purpose of winding up its affairs, or
         the retraction or redemption of Exchangeable Shares, as the case may
         be, and to be bound thereby in favour of each of Callco ULC and Callco
         LLC as therein provided.

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

13.      NOTICES

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

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

(3)      Any notice, request or other communication to be given to a holder of
         Exchangeable Shares by or on behalf of the Corporation shall be in
         writing and shall be valid and effective if given by first class mail
         (postage
<PAGE>
                                      -18-

         prepaid) or by delivery to the address of the holder recorded in the
         register of shareholders of the Corporation or, in the event of the
         address of any such holder not being so recorded, then at the last
         known address of such holder. Any such notice, request or other
         communication, if given by mail, shall be deemed to have been given and
         received on the third business day following the date of mailing and,
         if given by delivery, shall be deemed to have been given and received
         on the date of delivery. Accidental failure or omission to give any
         notice, request or other communication to one or more holders of
         Exchangeable Shares shall not invalidate or otherwise alter or affect
         any action or proceeding to be taken by the Corporation pursuant
         thereto.

(4)      In the event of any interruption of mail service immediately prior to a
         scheduled mailing or in the period following a mailing during which
         delivery normally would be expected to occur, LCE intends to make
         reasonable efforts to disseminate any notice by other means, such as
         publication. Except as otherwise required or permitted by law, if post
         offices in Canada or the United States are not open for the deposit of
         mail, any notice which LCE or the Transfer Agent may give will be
         deemed to have been properly given and to have been received by holders
         of Exchangeable Shares if (i) it is given to the TSX for dissemination
         or (ii) it is published once in the National Edition of The Globe and
         Mail and in the daily newspapers of general circulation in each of the
         French and English languages in the City of Montreal, provided that if
         the National Edition of The Globe and Mail is not being generally
         circulated, publication thereof will be made in any other daily
         newspaper of general circulation published in the City of Toronto.

         Notwithstanding any other provision of these share provisions, notices,
         other communications and deliveries need not be mailed if LCE
         determines that delivery thereof by mail may be delayed. Persons
         entitled to any deliveries (including certificates and cheques) which
         are not mailed for the foregoing reason may take delivery thereof at
         the office of the Transfer Agent to which the deliveries were made,
         upon application to the Transfer Agent, until such time as LCE has
         determined that delivery by mail will no longer be delayed. LCE will
         provide notice of any such determination not to mail made hereunder as
         soon as reasonably practicable after the making of such determination
         and in accordance with this section 13(4). Such deliveries in such
         circumstances will constitute delivery to the persons entitled thereto.

14.      DISCLOSURE OF INTERESTS IN EXCHANGEABLE SHARES

         The Corporation shall be entitled to require any holder of an
Exchangeable Share or any person who the Corporation knows or has reasonable
cause to believe holds any interest whatsoever in an Exchangeable Share to
confirm that fact or to give such details as to whom has an interest in such
Exchangeable Share as would be required (if the Exchangeable Shares were a class
of "equity shares" of the Corporation) under section 101 of the Securities Act
or as would be required under the Articles of LCE or any laws or regulations, or
pursuant to the rules or regulations of any regulatory Agency if the
Exchangeable Shares were shares of LCE Stock.

15.      CONSTRAINT ON SHARES

         At no time may non-residents of Canada within the meaning of the Tax
Act ("Non-residents") be the beneficial owners of more than 49% of the
Exchangeable Shares then outstanding. The Board of Directors may require
statutory declarations as to the jurisdictions in which beneficial holders of
Exchangeable Shares are resident. The Board of Directors may also require such
statutory declaration from any person seeking to have a transfer of Exchangeable
Shares registered in its name or to have the Corporation issue to it. If the
Board of Directors becomes aware that the beneficial owners of 49% of the
Exchangeable Shares then outstanding are, or may be, Non-resident or that such a
situation is imminent, the Transfer Agent or registrar shall make a public
announcement thereof and shall not accept a subscription of Exchangeable Shares
from or issue or register a transfer of Exchangeable Shares to a person unless
the person provides a declaration in form and content satisfactory to the Board
of Directors that the person is not a Non-resident. If notwithstanding the
foregoing, the Board of Directors determines that 49% or more of the
Exchangeable Shares are held by Non-residents, the Board of Directors may send a
notice to Non-resident holders of Exchangeable Shares, chosen in inverse order
to the order of acquisition or registration or in such other manner as the Board
of Directors may consider equitable and practicable, requiring them to sell
their Exchangeable Shares or a portion thereof within a specified period of not
less than 60 days. If the holders receiving such notice have not sold the
specified number of Exchangeable Shares or provided the Board of Directors with
satisfactory evidence that they are not Non-residents within such period, the
Board of Directors may, to the extent permitted by the OBCA and the regulations
promulgated thereunder, on behalf of such holders, sell such Exchangeable Shares
as
<PAGE>
                                      -19-

if the Corporation were the owner, and, in the interim, shall suspend the voting
and distribution rights, if any, attached to such Exchangeable Shares. Upon such
sale, the affected holders shall cease to be holders of Exchangeable Shares and
their rights shall be limited to receiving the net proceeds of sale upon
surrender of the certificates representing such Exchangeable Shares. The Board
of Directors may also refuse the issue or transfer of Exchangeable Shares to a
person who may be a Non-resident if such person has failed to furnish to the
Corporation information requested to establish that such person is a Canadian
resident. Unless and until the Board of Directors shall have been required to do
so under the terms hereof, the Board of Directors shall not be bound to do or
take any proceeding or action with respect to this Article 15 by virtue of the
powers conferred on it hereby. The Board of Directors shall not be deemed to
have notice of any violation of this Article 15 unless and until they have been
given written notice of such violation and shall act only as required by these
share provisions. The Board of Directors shall not be required to actively
monitor the residency status of the beneficial holders of the Exchangeable
Shares. It is acknowledged that the Board of Directors cannot monitor whether
the Exchangeable Shares are beneficially owned by Non-residents given that the
Exchangeable Shares are registered in the name of certain depositaries of
securities. The Board of Directors shall not be liable for any violation of the
Non-resident ownership restriction which may occur.

16.      DATE FOR ANY ACTION

         If any date on which any action is required to be taken under this
agreement is not a business day, such action shall be required to be taken on
the next succeeding business day.
<PAGE>
                                    EXHIBIT 1
                               RETRACTION REQUEST

[TO BE PRINTED ON EXCHANGEABLE SHARE CERTIFICATES]

To:      Loews Cineplex Entertainment Canada Corporation ("THE CORPORATION") and
Loews Cineplex Canada Callco, ULC ("CALLCO ULC"), Loews Cineplex U.S. Callco,
LLC ("CALLCO LLC") and Loews Cineplex Entertainment Corporation ("LCE")

         This notice is given pursuant to Article 6 of the provisions (the
"SHARE PROVISIONS") attaching to the Exchangeable Shares of the Corporation
represented by this certificate and all capitalized words and expressions used
in this notice that are defined in the Share Provisions have the meanings
ascribed to such words and expressions in such Share Provisions.

         The undersigned hereby notifies the Corporation that, provided that the
Retraction Call Right referred to below has not been exercised, the undersigned
desires to have the Corporation redeem in accordance with section 6 of the Share
Provisions:

[ ]      all share(s) represented by this certificate; or

[ ]      ________________ share(s) only.

         The Retraction Date shall be the date that is 15 business days after
the date upon which this notice is received by the Corporation, provided that
the Retraction Date may not occur during the period beginning the last day of
each fiscal quarter of LCE and ending at 5:00 p.m. on the first business day
following the public announcement of LCE's operating results for such fiscal
quarter (inclusive) (the "BLACK-OUT PERIOD"). If the Retraction Date would
otherwise be scheduled to occur during the Black-out Period, it will be deemed
to occur on the first business day following the Black-out Period.
Notwithstanding the foregoing, the Black-out Period shall not apply to a
Retraction Date occurring as a result of a holder exercising his, her or its
Exchange Right under the Voting and Exchange Trust Agreement.

         The undersigned acknowledges that the Corporation, in its sole
discretion, may, but shall not be required to, redeem the Retracted Shares on a
date which is less than 15 business days from the date on which it receives a
Retraction Request.

         The undersigned acknowledges the overriding Retraction Call Right of
each of Callco ULC and Callco LLC to purchase all but not less than all the
Retracted Shares from the undersigned and that this notice is and shall be
deemed to be a revocable offer by the undersigned to sell the Retracted Shares
to Callco ULC or Callco LLC, as the case may be, in accordance with the
Retraction Call Right on the Retraction Date for the Retraction Price and on the
other terms and conditions set out in section 6(3) of the Share Provisions. This
Retraction Request, and this offer to sell the Retracted Shares to Callco ULC or
Callco LLC, as the case may be, may be revoked and withdrawn by the undersigned
only by notice in writing given to the Corporation at any time before the close
of business on the business day immediately preceding the Retraction Date.

         The undersigned acknowledges that, in the event a Retraction Date is
scheduled for the first business day after a Black-out Period, the Corporation
may deliver written confirmation to a holder of its previously delivered
Retraction Request no later than 9:00 a.m. (Toronto time) on the business day
preceding the Retraction Date confirming that the retraction of the Retracted
Shares will occur as at the close of business on the Retraction Date unless the
undersigned delivers a notice of withdrawal in accordance with section 6(7) of
the Share Provisions.

         The undersigned acknowledges that if, as a result of solvency
provisions of applicable law, the Corporation is unable to redeem all Retracted
Shares, the Retracted Shares may be exchanged pursuant to the Exchange Right
under the Voting and Exchange Trust Agreement so as to require LCE to purchase
the unredeemed Retracted Shares.

         The undersigned hereby represents and warrants to Callco ULC, Callco
LLC, LCE and the Corporation that the undersigned:

[ ]      is

                      (select one)
[ ]      is not

a non-resident of Canada for purposes of the Income Tax Act (Canada). THE
UNDERSIGNED ACKNOWLEDGES THAT IN THE ABSENCE OF AN INDICATION THAT THE
UNDERSIGNED IS NOT A NON-RESIDENT OF CANADA, WITHHOLDING ON ACCOUNT OF CANADIAN
TAX MAY BE MADE FROM AMOUNTS PAYABLE TO THE UNDERSIGNED ON THE REDEMPTION OR
PURCHASE OF THE RETRACTED SHARES.
<PAGE>
                                       -2-

         The undersigned hereby represents and warrants to Callco ULC, Callco
LLC, LCE and the Corporation that the undersigned has good title to, and owns,
the share(s) represented by this certificate to be acquired by Callco ULC,
Callco LLC, LCE or the Corporation, as the case may be, free and clear of all
liens, claims and encumbrances.

_____________________  ___________________________  ___________________________
(Date)                 (Signature of Shareholder)   (Guarantee of Signature)

[ ]      Please check box if the certificates for shares of LCE Stock and any
cheque(s) resulting from the retraction or purchase of the Retracted Shares are
to be held for pick-up by the shareholder from the Transfer Agent, failing which
such certificates and cheque(s) will be mailed to the last address of the
shareholder as it appears on the register.

NOTE:    This panel must be completed and this certificate, together with such
         additional documents and payments (including, without limitation, any
         applicable Stamp Taxes) as the Transfer Agent may require, must be
         deposited with the Transfer Agent. The securities and any cheque(s)
         resulting from the retraction or purchase of the Retracted Shares will
         be issued and registered in, and made payable to, respectively, the
         name of the shareholder as it appears on the register of the
         Corporation and the certificates for shares of LCE Stock and any
         cheque(s) resulting from such retraction or purchase will be delivered
         to such shareholder as indicated above, unless the form appearing
         immediately below is duly completed.

Date: ________________________________________

Name of Person in Whose Name Securities or Cheque(s)
are to be Registered, Issued or Delivered (please print):

                                             ___________________________________
Street Address or P.O. Box:
                                             ___________________________________
Signature of Shareholder:
                                             ___________________________________
City, Province and Postal Code:
                                             ___________________________________
Signature Guaranteed by:
                                             ___________________________________

NOTE:    If this Retraction Request is for less than all of the shares
         represented by this certificate, a certificate representing the
         remaining share(s) of the Corporation represented by this certificate
         will be issued and registered in the name of the shareholder as it
         appears on the register of the Corporation, unless the Share Transfer
         Power on the share certificate is duly completed in respect of such
         share(s)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]