Document:

Exhibit
10.2

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
10.2

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
10.2Unassociated Document

    VOTING
AND EXCHANGE TRUST AGREEMENT

     

    THIS
VOTING AND EXCHANGE TRUST AGREEMENT is entered into as of July 6, 2009, by and
between JAG Media Holdings, Inc., a corporation incorporated under the laws of
the State of Nevada ("JAG"),
CardioGenics ExchangeCo Inc., an Ontario corporation ("ExchangeCo"),
and WeirFoulds LLP, an Ontario limited liability partnership ("Trustee").

     

    WHEREAS,
pursuant to a share purchase agreement dated effective as of May 22, 2009 by and
between JAG, ExchangeCo, CardioGenics Inc. ("CardioGenics")
and Yahia Gawad (such agreement as it may be amended or restated is hereinafter
referred to as the "Share
Purchase Agreement"), the parties agreed that on or prior to the
Effective Date (as defined in the Share Purchase Agreement), JAG and ExchangeCo
would execute and deliver a Voting and Exchange Trust Agreement, a Support
Agreement and such other terms and conditions as may be agreed to by the parties
to the Share Purchase Agreement acting reasonably.

     

    AND
WHEREAS, pursuant to the Share Purchase Agreement, each issued and outstanding
common share of CardioGenics, excluding 161,269 common shares of CardioGenics
owned by a minority shareholder (a "CardioGenics
Common Share") will be exchanged for the applicable number shares of JAG
Common Stock or, at the option of the CardioGenics
shareholders,  exchangeable shares of ExchangeCo in accordance with
the terms of the Share Purchase Agreement (the "Exchangeable
Shares");

     

    AND
WHEREAS, on or prior to the Effective Date, the Articles of Incorporation of
ExchangeCo shall be amended to set forth the rights, privileges, restrictions
and conditions attaching to the Exchangeable Shares (collectively, the "Exchangeable
Share Provisions"), and a copy of the amendment to be filed with respect
to such Articles of Incorporation is attached hereto as Exhibit A;

     

    AND
WHEREAS, JAG is to provide voting rights in JAG to each holder (other than JAG
and its Subsidiaries) from time to time of Exchangeable Shares, such voting
rights per Exchangeable Share to be equivalent to the voting rights per share of
JAG Common Stock;

     

    AND
WHEREAS, JAG is to grant to and in favor of the holders (other than JAG and its
subsidiaries) from time to time of Exchangeable Shares the right, in the
circumstances set forth herein, to require JAG to purchase from each such holder
all or any part of the Exchangeable Shares held by the holder;

     

    AND
WHEREAS, the parties desire to make appropriate provision and to establish a
procedure whereby voting rights in JAG shall be exercisable by holders (other
than JAG and its subsidiaries) from time to time of Exchangeable Shares by and
through the Trustee, which will hold legal title to and a share certificate in
respect of one (1) share of JAG Series 1 Preferred Stock (the "JAG
Special Voting Stock") to which voting rights attach for the benefit of
such holders of Exchangeable Shares, which series of preferred stock shall be
created on, or prior to, the Effective Date, and the rights, privileges,
restrictions and conditions with respect to the JAG Special Voting Stock are set
forth in Exhibit B attached hereto;

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 2 -

     

    AND
WHEREAS, the rights to require JAG or, at the option of JAG, JAG Holdco, to
purchase Exchangeable Shares from the holders thereof (other than JAG and its
subsidiaries) shall be exercisable by such holders from time to time of
Exchangeable Shares by and through the Trustee, which will hold legal title to
such rights for the benefit of such holders;

     

    AND
WHEREAS, these recitals and any statements of fact in this agreement are made by
JAG and ExchangeCo and not by the Trustee;

     

    NOW
THEREFORE, in consideration of the respective covenants and agreements provided
in this agreement and for other good and valuable consideration (the receipt and
sufficiency of which are hereby acknowledged), the parties agree as
follows:

     

    ARTICLE
I

    DEFINITIONS
AND INTERPRETATION

     

    
      	
              1.1 

            	
              Definitions

            

    

     

    In this
agreement, the following terms shall have the following meanings:

     

    "Act" has the meaning in the
recitals hereto;

     

    "Aggregate Equivalent Vote
Amount" means, with respect to any matter, proposition or question on
which holders of JAG Common Stock are entitled to vote, consent or otherwise
act, the product of (i) the number of shares of Exchangeable Shares issued and
outstanding and held by Holders multiplied by (ii) the Equivalent Vote
Amount.

     

    "Arrangement" has the meaning
provided in the recitals hereto.

     

    "Automatic Exchange Rights"
means the benefit of the obligation of JAG to effect the automatic exchange of
shares of JAG Common Stock for Exchangeable Shares pursuant to Section 5.12
hereof.

     

    "Board of Directors" means the
Board of Directors of ExchangeCo.

     

    "Business Day" has the meaning
provided in the Exchangeable Share Provisions.

     

    "CardioGenics" has the meaning
in the recitals hereto.

     

    "Equivalent Vote Amount" means,
with respect any matter, proposition or question on which holders of JAG Common
Stock are entitled to vote, consent or otherwise act, the number of votes to
which a holder of one share of JAG Common Stock is entitled with respect to such
matter, proposition or question.

     

    "ExchangeCo" has the meaning in
the recitals hereto.

     

    "Exchange Put Right" has the
meaning provided in the Exchangeable Share Provisions.

     

    "Exchange Right" has the
meaning provided in Section 5.1(b) hereof.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 3 -

     

    "Exchangeable Share
Consideration" has the meaning provided in the Exchangeable Share
Provisions.

     

    "Exchangeable Share Price" has
the meaning provided in the Exchangeable Share Provisions.

     

    "Exchangeable Share Provisions"
has the meaning provided in the recitals hereto.

     

    "Exchangeable Shares" has the
meaning provided in the recitals hereto.

     

    "Holder Votes" has the meaning
provided in Section 4.2 hereof.

     

    "Holders" means the registered
holders from time to time of Exchangeable Shares, other than JAG and its
Subsidiaries.

     

    "Insolvency Event" means the
institution by ExchangeCo of any proceeding to be adjudicated a bankrupt or
insolvent or to be dissolved or wound-up, or the consent of ExchangeCo to the
institution of bankruptcy, insolvency, dissolution or winding-up proceedings
against it, or the filing of a petition, answer or consent seeking dissolution
or winding-up under any bankruptcy, insolvency or analogous laws, including
without limitation the Companies Creditors Arrangement Act (Canada) and the
Bankruptcy and Insolvency Act (Canada), and the failure by ExchangeCo to contest
in good faith any such proceedings commenced in respect of ExchangeCo within 15
days of becoming aware thereof, or if so contested the adjudication that
ExchangeCo is bankrupt or insolvent or is to be dissolved or wound-up, or the
consent by ExchangeCo to the filing of any such petition or to the appointment
of a receiver, or the making by ExchangeCo of a general assignment for the
benefit of creditors, or the admission in writing by ExchangeCo of its inability
to pay its debts generally as they become due, or ExchangeCo's not being
permitted, pursuant to liquidity or solvency requirements of applicable law, to
redeem any Retracted Shares pursuant to Section 6.5 of the Exchangeable Share
Provisions.

     

    "JAG" has the meaning in the
recitals hereto.

     

    "JAG Common Stock" has the
meaning provided in the Exchangeable Share Provisions.

     

    "JAG Consent" has the meaning
provided in Section 4.2 hereof.

     

    "JAG Holdco" means a subsidiary
of JAG (other than ExchangeCo) established by JAG for the purpose of purchasing
Exchangeable Shares and delivering JAG Common Stock as provided for in this
Agreement, the Exchangeable Share Provisions or the Support
Agreement.

     

    "JAG Meeting" has the meaning
provided in Section 4.2 hereof.

     

    "JAG Special Voting Stock" has
the meaning provided in the recitals hereto.

     

    "JAG Stock Options" means the
outstanding (and committed to be issued) options entitling the holders to
acquire upon exercise thereof up to 2,750,000 shares of JAG Common Stock in the
aggregate.

     

    "Liquidation Call Right" has
the meaning provided in the Exchangeable Share Provisions.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 4 -

     

    "Liquidation Event" has the
meaning provided in subsection 5.12(b) hereof.

     

    "Liquidation Event Effective
Time" has the meaning provided in subsection 5.12(c) hereof.

     

    "List" has the meaning provided
in Section 4.6 hereof.

     

    "Officer's Certificate" means,
with respect to JAG or ExchangeCo, as the case may be, a certificate signed by
any one of the Chairman of the Board, the Vice-Chairman of the Board (if there
be one), the President or any Vice-President of JAG or ExchangeCo, as the case
may be.

     

    "Person" includes an
individual, body corporate, partnership, company, unincorporated syndicate or
organization, trust, trustee, executor, administrator and other legal
representative.

     

    "Plan of Arrangement" has the
meaning provided in the Exchangeable Share Provisions.

     

    "Redemption Call Right" has the
meaning provided in the Exchangeable Share Provisions.

     

    "Retracted Shares" has the
meaning provided in Section 5.7 hereof.

     

    "Retraction Call Right" has the
meaning provided in the Exchangeable Share Provisions.

     

    "Share Purchase Agreement" has
the meaning in the recitals hereto.

     

    "Successor" has the meaning
provided in subsection 11.1 (a) hereof.

     

    "Support Agreement" means that
certain support agreement made as of even date hereof by and between JAG and
ExchangeCo.

     

    "Trust" means the trust created
by this agreement.

     

    "Trust Estate" means the Voting
Share, any other securities, the Exchange Put Right, the Exchange Right, the
Automatic Exchange Rights and any money or other property which may be held by
the Trustee from time to time pursuant to this agreement.

     

    "Trustee" means WeirFoulds LLP
and, subject to the provisions of Article 10 hereof, includes any successor
trustee or permitted assigns.

     

    "Voting Rights" means the
voting rights attached to the Voting Share.

     

    "Voting Share" means the one
share of JAG Special Voting Stock, U.S. $0.01 par value, issued by JAG to and
deposited with the Trustee, which entitles the holder of record to a number of
votes at meetings of holders of JAG Common Stock equal to the Aggregate
Equivalent Vote Amount.

     

    
      	
              1.2 

            	
              Interpretation
      Not Affected by Headings,
Etc.

            

    

     

    The
division of this agreement into articles, sections and paragraphs and the
insertion of headings are for convenience of reference only and shall not affect
the construction or interpretation of this agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 5 -

     

    
      	
              1.3 

            	
              Number,
      Gender, Etc.

            

    

     

    Words
importing the singular number only shall include the plural and vice versa.
Words importing the use of any gender shall include all genders.

     

    
      	
              1.4 

            	
              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.

     

    
      	
              1.5 

            	
              Payments

            

    

     

    All
payments to be made hereunder will be made without interest and less any tax
required by Canadian law to be deducted or withheld.

     

    ARTICLE
II

    PURPOSE
OF AGREEMENT

     

    The
purpose of this agreement is to create the Trust for the benefit of the Holders,
as herein provided. The Trustee will hold the Voting Share in order to enable
the Trustee to exercise the Voting Rights and will hold the Exchange Put Right,
the Exchange Right and the Automatic Exchange Rights in order to enable the
Trustee to exercise such rights, in each case as trustee for and on behalf of
the Holders as provided in this agreement.

     

    ARTICLE
III

    VOTING
SHARE

     

    
      	
              3.1 

            	
              Issuance
      and Ownership of the Voting
Share

            

    

     

    On the
Effective Date, JAG will issue to and deposit with the Trustee the Voting Share
to be hereafter held of record by the Trustee as trustee for and on behalf of,
and for the use and benefit of, the Holders and in accordance with the
provisions of this agreement. JAG hereby acknowledges receipt from the Trustee
as trustee for and on behalf of the Holders of good and valuable consideration
(and the adequacy thereof) for the issuance of the Voting Share by JAG to the
Trustee. During the term of the Trust and subject to the terms and conditions of
this agreement, the Trustee shall possess and be vested with full legal
ownership of the Voting Share and shall be entitled to exercise all of the
rights and powers of an owner with respect to the Voting Share, provided that
the Trustee shall:

     

    
      	
               
      

            	
              (a)

            	
              hold
      the Voting Share and the legal title thereto as trustee solely for the use
      and benefit of the Holders in accordance with the provisions of this
      agreement; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              except
      as specifically authorized by this agreement, have no power or authority
      to sell, transfer, vote or otherwise deal in or with the Voting Share, and
      the Voting Share shall not be used or disposed of by the Trustee for any
      purpose other than the purposes for which this Trust is created pursuant
      to this agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 6 -

     

    
      	
              3.2 

            	
              Legended
      Share Certificates

            

    

     

    ExchangeCo
will cause each certificate representing Exchangeable Shares to bear an
appropriate legend notifying the Holders of their right to instruct the Trustee
with respect to the exercise of the Voting Rights with respect to the
Exchangeable Shares held by a Holder.

     

    
      	
              3.3 

            	
              Safe
      Keeping of Certificate

            

    

     

    The
certificate representing the Voting Share shall at all times be held in safe
keeping by the Trustee or its agent.

     

    
      	
              3.4 

            	
              Holders'
      Benefit

            

    

     

    For
greater certainty, the Trustee holds the benefit of the Voting Rights for the
Holders, but all other rights in respect of the Voting Share, including without
limitation any rights to receive dividends on the Voting Share, are for benefit
of JAG.

     

    ARTICLE
IV

    EXERCISE
OF VOTING RIGHTS

     

    
      	
              4.1 

            	
              Voting
      Rights

            

    

     

    The
Trustee, as the holder of record of the Voting Share, shall be entitled to all
of the Voting Rights, including the right to consent to or to vote in person or
by proxy the Voting Share, on any matter, question or proposition whatsoever
that may properly come before the stockholders of JAG at a JAG Meeting or in
connection with a JAG Consent (in each case, as hereinafter defined). The Voting
Rights shall be and remain vested in and exercised by the Trustee. Subject to
Section 7.15 hereof, the Trustee shall exercise the Voting Rights only on the
basis of instructions received pursuant to this Article 4 from Holders entitled
to instruct the Trustee as to the voting thereof at the time at which a JAG
Consent is sought or a JAG Meeting is held. To the extent that no instructions
are received from a Holder with respect to the Voting Rights to which such
Holder is entitled, the Trustee shall not exercise or permit the exercise of
such Holder's Voting Rights.

     

    
      	
              4.2 

            	
              Number
      of Votes

            

    

     

    With
respect to all meetings of stockholders of JAG at which holders of shares of JAG
Common Stock are entitled to vote (a "JAG
Meeting") and with respect to all written consents sought by JAG from its
stockholders including the holders of shares of JAG Common Stock (a "JAG
Consent"), each Holder shall be entitled to instruct the Trustee to cast
and exercise, in the manner instructed, a number of votes equal to the
Equivalent Vote Amount for each Exchangeable Share owned of record by such
Holder on the record date established by JAG or by applicable law for such JAG
Meeting or JAG Consent, as the case may be, (the "Holder
Votes") in respect of each matter, question or proposition to be voted on
at such JAG Meeting or to be consented to in connection with such JAG
Consent.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 7 -

     

    
      	
              4.3 

            	
              Mailings
      to Shareholders

            

    

     

    With
respect to each JAG Meeting and JAG Consent, the Trustee will use its reasonable
efforts to mail or cause to be mailed (or otherwise communicate in the same
manner as JAG utilizes in communications to holders of JAG Common Stock, subject
to the Trustee's ability to provide this method of communication and upon being
advised in writing of such method) to each of the Holders named in the List on
the same day as the initial mailing or notice (or other communication) with
respect thereto is given by JAG to its stockholders:

     

    
      	
               
      

            	
              (a)

            	
              a
      copy of such notice, together with any proxy or information statement and
      related materials to be provided to holders of JAG Common
      Stock;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      statement of the number of Holder Votes which the Holder is entitled to
      exercise;

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      statement that such Holder is entitled to instruct the Trustee as to the
      exercise of the Holder Votes with respect to such JAG Meeting or JAG
      Consent, as the case may be, or, pursuant to Section 4.7 hereof, to attend
      such JAG Meeting and to exercise personally the Holder Votes
      thereat;

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      statement as to the manner in which such instructions may be given to the
      Trustee, including an express indication that instructions may be given to
      the Trustee to give:

            

    

     

    
      	
               
      

            	
              (i)

            	
              a
      proxy to such Holder or such Holder's designee to exercise personally the
      Holder Votes; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              a
      proxy to a designated agent or other representative of the management of
      JAG to exercise such Holder Votes;

            

    

     

    
      	
               
      

            	
              (e)

            	
              a
      statement that if no voting instructions are received from the Holder, the
      Holder Votes to which such Holder is entitled will not be
      exercised;

            

    

     

    
      	
               
      

            	
              (f)

            	
              a
      form of direction whereby the Holder may so direct and instruct the
      Trustee as contemplated herein; and

            

    

     

    
      	
               
      

            	
              (g)

            	
              a
      statement of (i) the time and date by which such instructions must be
      received by the Trustee in order to be binding upon it, which in the case
      of a JAG Meeting shall not be earlier than the close of business on the
      Business Day prior to such meeting, and (ii) the method for revoking or
      amending such instructions.

            

    

     

    The
materials referred to above are to be provided by JAG to the Trustee, but shall
be subject to review and comment by the Trustee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 8 -

     

    For the
purpose of determining Holder Votes to which a Holder is entitled in respect of
any such JAG Meeting or JAG Consent, the number of Exchangeable Shares owned of
record by the Holder shall be determined at the close of business on the record
date established by JAG or by applicable law for purposes of determining
stockholders entitled to vote at such JAG Meeting or to give written consent in
connection with such JAG Consent. JAG will notify the Trustee in writing of any
decision of the board of directors of JAG with respect to the calling of any
such JAG Meeting or the seeking of any such JAG Consent and shall provide all
necessary information and materials to the Trustee in each case promptly and in
any event in sufficient time to enable the Trustee to perform its obligations
contemplated by this Section 4.3.

     

    
      	
              4.4 

            	
              Copies
      of Stockholder Information

            

    

     

    JAG will
deliver to the Trustee copies of all proxy materials, (including notices of JAG
Meetings, but excluding proxies to vote shares of JAG Common Stock), information
statements, reports (including without limitation all interim and annual
financial statements) and other written communications that are to be
distributed from time to time to holders of JAG Common Stock in sufficient
quantities and in sufficient time so as to enable the Trustee to send those
materials to each Holder, to the extent possible, at the same time as such
materials are first sent to holders of JAG Common Stock. The Trustee will mail
or otherwise send to each Holder, at the expense of JAG, copies of all such
materials (and all materials specifically directed to the Holders or to the
Trustee for the benefit of the Holders by JAG) received by the Trustee from JAG,
to the extent possible, at the same time as such materials are first sent to
holders of JAG Common Stock. The Trustee will make copies of all such materials
available for inspection by any Holder at the Trustee's principal transfer
office in the city of Toronto.

     

    
      	
              4.5 

            	
              Other
      Materials

            

    

     

    Immediately
after receipt by JAG or any stockholder of JAG of any material sent or given
generally to the holders of JAG Common Stock by or on behalf of a third party,
including without limitation dissident proxy and information circulars (and
related information and material) and tender and exchange offer circulars (and
related information and material), JAG shall use its reasonable best efforts to
obtain and deliver to the Trustee copies thereof in sufficient quantities so as
to enable the Trustee to forward such material (unless the same has been
provided directly to Holders by such third party) to each Holder as soon as
possible thereafter. As soon as practicable after receipt thereof, the Trustee
will mail or otherwise send to each Holder, at the expense of JAG, copies of all
such materials received by the Trustee from JAG. The Trustee will also make
copies of all such materials available for inspection by any Holder at the
Trustee's principal transfer office in the city of Toronto.

     

    
      	
              4.6 

            	
              List
      of Persons Entitled to Vote

            

    

     

    ExchangeCo
shall, (i) prior to each annual, general or special JAG Meeting or the seeking
of any JAG Consent and (ii) forthwith upon each request made at any time by the
Trustee in writing, prepare or cause to be prepared a list (a "List")
of the names and addresses of the Holders arranged in alphabetical order and
showing the number of Exchangeable Shares held of record by each such Holder, in
each case at the close of business on the date specified by the Trustee in such
request or, in the case of a List prepared in connection with a JAG Meeting or a
JAG Consent, at the close of business on the record date established by JAG or
pursuant to applicable law for determining the holders of JAG Common Stock
entitled to receive notice of and/or to vote at such JAG Meeting or to give
consent in connection with such JAG Consent. Each such List shall be delivered
to the Trustee promptly after receipt by ExchangeCo of such request or the
record date for such meeting or seeking of consent, as the case may be, and in
any event within sufficient time as to enable the Trustee to perform its
obligations under this agreement. JAG agrees to give ExchangeCo written notice
(with a copy to the Trustee) of the calling of any JAG Meeting or the seeking of
any JAG Consent, together with the record dates therefor, sufficiently prior to
the date of the calling of such meeting or seeking of such consent so as to
enable ExchangeCo to perform its obligations under this Section
4.6.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 9 -

     

    
      	
              4.7 

            	
              Entitlement
      to Direct Votes

            

    

     

    Any
Holder named in a List prepared in connection with any JAG Meeting or any JAG
Consent will be entitled (i) to instruct the Trustee in the manner described in
Section 4.3 hereof with respect to the exercise of the Holder Votes to which
such Holder is entitled or (ii) to attend such meeting and personally to
exercise thereat (or to exercise with respect to any written consent), as the
proxy of the Trustee, the Holder Votes to which such Holder is
entitled.

     

    
      	
              4.8 

            	
              Voting
      by Trustee, and Attendance of Trustee Representative, at
      Meeting

            

    

     

    In
connection with each JAG Meeting and JAG Consent, the Trustee shall exercise,
either in person or by proxy, in accordance with the instructions received from
a Holder pursuant to Section 4.3 hereof, the Holder Votes as to which such
Holder is entitled to direct the vote (or any lesser number thereof as may be
set forth in the instructions); provided, however, that such written
instructions are received by the Trustee from the Holder prior to the time and
date fixed by it for receipt of such instructions in the notice given by the
Trustee to the Holder pursuant to Section 4.3 hereof.

     

    The
Trustee shall cause such representatives as are empowered by it to sign and
deliver, on behalf of the Trustee, proxies for Voting Rights to attend each JAG
Meeting. Upon submission by a Holder (or its designee) of identification
satisfactory to the Trustee's representatives, and at the Holder's request, such
representatives shall sign and deliver to such Holder (or its designee) a proxy
to exercise personally the Holder Votes as to which such Holder is otherwise
entitled hereunder to direct the vote, if such Holder either:

     

    
      	
               
      

            	
              (i)

            	
              has
      not previously given the Trustee instructions pursuant to Section 4.3
      hereof in respect of such JAG Meeting,
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              submits
      to the Trustee's representatives written revocation of any such previous
      instructions.

            

    

     

    At such
JAG Meeting, the Holder exercising such Holder Votes shall have the same rights
as the Trustee to speak at the meeting in respect of any matter, question or
proposition, to vote by way of ballot at the meeting in respect of any matter,
question or proposition and to vote at such meeting by way of a show of hands in
respect of any matter, question or proposition.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    - 10 -

     

    
      	
              4.9 

            	
              Distribution
      of Written Materials

            

    

    Any
written materials to be distributed by the Trustee to the Holders pursuant to
this agreement shall be delivered or sent by mail (or otherwise communicated in
the same manner as JAG utilizes in communications to holders of JAG Common Stock
subject to the Trustee's ability to provide this method of communication and
upon being advised in writing of such method) to each Holder at its address as
shown on the books of ExchangeCo. ExchangeCo shall provide or cause to be
provided to the Trustee for this purpose, on a timely basis and without charge
or other expense:

     

    
      	
               
      

            	
              (a)

            	
              current
      lists of the Holders; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              on
      the request of the Trustee, mailing labels to enable the Trustee to carry
      out its duties under this
agreement.

            

    

     

    The
materials referred to above are to be provided by ExchangeCo to the Trustee, but
shall be subject to review and comment by the Trustee.

     

    
      	
              4.10 

            	
              Termination
      of Voting Rights

            

    

     

    Except as
otherwise provided herein or in the Exchangeable Share Provisions, all of the
rights of a Holder with respect to the Holder Votes exercisable in respect of
the Exchangeable Shares held by such Holder, including the right to instruct the
Trustee as to the voting of or to vote personally such Holder Votes, shall be
deemed to be surrendered by the Holder to JAG, and such Holder Votes and the
Voting Rights represented thereby shall cease immediately, upon the delivery by
such Holder to the Trustee of the certificates representing such Exchangeable
Shares in connection with the exercise by the Holder of the Exchange Put Right
or the Exchange Right or the occurrence of the automatic exchange of
Exchangeable Shares for shares of JAG Common Stock, as specified in Article 5
hereof (unless in any case JAG or JAG Holdco shall not have delivered the
Exchangeable Share Consideration deliverable in exchange therefor to the Trustee
for delivery to the Holders), or upon the redemption of Exchangeable Shares
pursuant to Article 6 or Article 7 of the Exchangeable Share Provisions, or upon
the effective date of the liquidation, dissolution or winding-up of ExchangeCo
or any other distribution of the assets of ExchangeCo among its shareholders for
the purpose of winding up its affairs pursuant to Article 5 of the Exchangeable
Share Provisions, or upon the purchase of Exchangeable Shares from the holder
thereof by JAG pursuant to the exercise by JAG of the Retraction Call Right, the
Redemption Call Right or the Liquidation Call Right.

     

    ARTICLE
V

    EXCHANGE
RIGHT AND AUTOMATIC EXCHANGE

     

    
      	
              5.1 

            	
              Grant
      and Ownership of the Exchange Put Right, Exchange Right and Automatic
      Exchange Right

            

    

     

    JAG
hereby grants to the Trustee as trustee for and on behalf of, and for the use
and benefit of, the Holders:

     

    
      	
               
      

            	
              (a)

            	
              the
      Exchange Put Right;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      right (the "Exchange
      Right"), upon the occurrence and during the continuance of an
      Insolvency Event, to require JAG to purchase from each or any Holder all
      or any part of the Exchangeable Shares held by the Holders, provided that,
      upon exercise of such right, JAG may, at its option, cause JAG Holdco to
      purchase such shares; and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 11 -

     

    
      	
               
      

            	
              (c)

            	
              the
      Automatic Exchange Rights, all in accordance with the provisions of this
      agreement and the Exchangeable Share Provisions, as the case may be. JAG
      hereby acknowledges receipt from the Trustee as trustee for and on behalf
      of the Holders of good and valuable consideration (and the adequacy
      thereof) for the grant of the Exchange Put Right, the Exchange Right and
      the Automatic Exchange Rights by JAG to the Trustee. During the term of
      the Trust and subject to the terms and conditions of this agreement, the
      Trustee shall possess and be vested with full legal ownership of the
      Exchange Put Right, the Exchange Right and the Automatic Exchange Rights
      and shall be entitled to exercise and enforce for the benefit of the
      Holders all of the rights and powers of an owner with respect to the
      Exchange Put Right, the Exchange Right and the Automatic Exchange Rights,
      provided that the Trustee shall:

            

    

     

    
      	
               
      

            	
              (d)

            	
              hold
      the Exchange Put Right, the Exchange Right and the Automatic Exchange
      Rights and the legal title thereto as trustee solely for the use and
      benefit of the Holders in accordance with the provisions of this
      agreement; and except as specifically authorized by this agreement, have
      no power or authority to exercise or otherwise deal in or with the
      Exchange Put Right, the Exchange Right or the Automatic Exchange Rights,
      and the Trustee shall not exercise any such rights for any purpose other
      than the purposes for which this Trust is created pursuant to this
      agreement.

            

    

     

    
      	
              5.2 

            	
              Legended
      Share Certificates

            

    

     

    ExchangeCo
will cause each certificate representing Exchangeable Shares to bear an
appropriate legend notifying the Holders of:

     

    
      	
               
      

            	
              (a)

            	
              of
      their right to instruct the Trustee with respect to the exercise of the
      Exchange Put Right and the Exchange Right in respect of the Exchangeable
      Shares held by a Holder;

            

    

     

    
      	
               
      

            	
              (b)

            	
              of
      the Automatic Exchange Rights; and

            

    

     

    
      	
               
      

            	
              (c)

            	
              that
      none of their Exchangeable Shares may be registered for resale prior to
      six (6) months after the Effective
Date.

            

    

     

    
      	
              5.3 

            	
              General
      Exercise of Exchange Put Right and the Exchange
    Right

            

    

     

    The
Exchange Put Right and the Exchange Right shall be and remain vested in and
exercised by the Trustee. Subject to Section 7.14 hereof, the Trustee shall
exercise the Exchange Put Right and the Exchange Right only on the basis of
instructions received pursuant to this Article 5 from Holders entitled to
instruct the Trustee as to the exercise thereof. To the extent that no
instructions are received from a Holder with respect to the Exchange Put Right
and the Exchange Right, the Trustee shall not exercise or permit the exercise of
the Exchange Put Right and the Exchange Right.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 12 -

     

    
      	
              5.4 

            	
              Purchase
      Price

            

    

     

    The
purchase price payable by JAG (or JAG Holdco, in the case of a purchase by JAG
Holdco) for each Exchangeable Share to be purchased by JAG or JAG Holdco (as the
case may be) (i) under the Exchange Put Right shall be the amount determined
under the Exchangeable Share Provisions; and (ii) under the Exchange Right shall
be an amount equal to the Exchangeable Share Price on the last Business Day
prior to the day of closing of the purchase and sale of such Exchangeable Share
under the Exchange Right. In connection with each exercise of the Exchange
Right, JAG will provide to the Trustee an Officer's Certificate setting forth
the calculation of the applicable Exchangeable Share Price for each Exchangeable
Share. The applicable Exchangeable Share Price for each such Exchangeable Share
so purchased may be satisfied only by JAG's issuing and delivering or causing to
be issued and delivered to the Trustee, on behalf of the relevant Holder, the
applicable Exchangeable Share Consideration representing the total applicable
Exchangeable Share Price.

     

    
      	
              5.5 

            	
              Exercise
      Instructions for Exchange
Right

            

    

     

    Subject
to the terms and conditions herein set forth, a Holder shall be entitled, upon
the occurrence and during the continuance of an Insolvency Event, to instruct
the Trustee to exercise the Exchange Right with respect to all or any part of
the Exchangeable Shares registered in the name of such Holder on the books of
ExchangeCo. To cause the exercise of the Exchange Right by the Trustee, the
Holder shall deliver to the Trustee, in person or by certified or registered
mail, at its principal transfer offices in Toronto, Ontario or at such other
places in Canada as the Trustee may from time to time designate by written
notice to the Holders, the certificates representing the Exchangeable Shares
which such Holder desires JAG to purchase, duly endorsed in blank, and
accompanied by such other documents and instruments as may be required to effect
a transfer of Exchangeable Shares under applicable law and the by-laws of
ExchangeCo and such additional documents and instruments as the Trustee may
reasonably require, together with:

     

    
      	
               
      

            	
              (a)

            	
              a
      duly completed form of notice of exercise of the Exchange Right, contained
      on the reverse of or attached to the Exchangeable Share certificates,
      stating:

            

    

     

    
      	
               
      

            	
              (i)

            	
              that
      the Holder thereby instructs the Trustee to exercise the Exchange Right so
      as to require JAG to purchase from the Holder the number of Exchangeable
      Shares specified therein,

            

    

     

    
      	
               
      

            	
              (ii)

            	
              that
      such Holder has good title to and owns all such Exchangeable Shares to be
      acquired by JAG free and clear of all liens, claims, encumbrances,
      security interests and adverse claims or
  interests,

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      names in which the certificates representing JAG Common Stock issuable in
      connection with the exercise of the Exchange Right are to be issued,
      and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      names and addresses of the persons to whom the Exchangeable Share
      Consideration should be delivered;
and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 13 -

     

    
      	
               
      

            	
              (b)

            	
              payment
      (or evidence satisfactory to the Trustee, ExchangeCo and JAG of payment)
      of the taxes (if any) payable as contemplated by Section 5.8 of this
      Agreement.

            

    

     

    If only a
part of the Exchangeable Shares represented by any certificate or certificates
delivered to the Trustee are to be purchased by JAG under the Exchange Right, a
new certificate for the balance of such Exchangeable Shares shall be issued to
the Holder at the expense of ExchangeCo.

     

    
      	
              5.6 

            	
              Delivery
      of Exchangeable Share Consideration; Effect of
    Exercise

            

    

     

    Promptly
after receipt of the certificates representing the Exchangeable Shares which the
Holder desires JAG to purchase under the Exchange Put Right or the Exchange
Right (together with such documents and instruments of transfer and a duly
completed form of notice of exercise of the Exchange Put Right or the Exchange
Right), duly endorsed for transfer to JAG (or JAG Holdco as JAG may direct), the
Trustee shall notify JAG and ExchangeCo of its receipt of the same, which notice
to JAG and ExchangeCo shall constitute exercise of the Exchange Put Right or the
Exchange Right by the Trustee on behalf of the Holder of such Exchangeable
Shares, and JAG shall immediately thereafter deliver or cause to be delivered to
the Trustee, for delivery to the Holder of such Exchangeable Shares (or to such
other persons, if any, properly designated by such Holder), the Exchangeable
Share Consideration deliverable in connection with the exercise of the Exchange
Put Right or the Exchange Right; provided, however, that no such delivery shall
be made unless and until the Holder requesting the same shall have paid (or
provided evidence satisfactory to the Trustee, ExchangeCo and JAG of the payment
of) the taxes (if any) payable as contemplated by Section 5.8 of this agreement.
Immediately upon the giving of notice by the Trustee to JAG and ExchangeCo of
the exercise of the Exchange Put Right or the Exchange Right, as provided in
this Section 5.6, (i) the closing of the transaction of purchase and sale
contemplated by the Exchange Put Right or the Exchange Right shall be deemed to
have occurred, (ii) JAG shall be required to take all action necessary to permit
it to occur, including delivery to the Trustee of the relevant Exchangeable
Share Consideration, no later than the close of business on the third Business
Day following the receipt by the Trustee of notice, certificates and other
documents as aforesaid and (iii) the Holder of such Exchangeable Shares shall be
deemed to have transferred to JAG (or JAG Holdco as JAG may direct) all of its
right, title and interest in and to such Exchangeable Shares and the related
interest in the Trust Estate, shall cease to be a holder of such Exchangeable
Shares and shall not be entitled to exercise any of the rights of a holder in
respect thereof, other than the right to receive his proportionate part of the
total purchase price therefor, unless such Exchangeable Share Consideration is
not delivered by JAG to the Trustee by the date specified above, in which case
the rights of the Holder shall remain unaffected until such Exchangeable Share
Consideration is delivered by JAG and any cheque included therein is paid.
Concurrently with such Holder ceasing to be a holder of Exchangeable Shares, the
Holder shall be considered and deemed for all purposes to be the holder of the
shares of JAG Common Stock delivered to it pursuant to the Exchange Put Right or
the Exchange Right. Notwithstanding the foregoing, until the Exchangeable Share
Consideration is delivered to the Holder, the Holder shall be deemed to still be
a holder of the sold Exchangeable Shares for purposes of the Voting Rights with
respect thereto.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 14 -

     

    
      	
              5.7 

            	
              Exercise
      of Exchange Right Subsequent to
  Retraction

            

    

     

    In the
event that a Holder has exercised its right under Article 6 of the Exchangeable
Share Provisions to require ExchangeCo to redeem any or all of the Exchangeable
Shares held by the Holder (the "Retracted
Shares") and is notified by ExchangeCo pursuant to Section 6.6 of the
Exchangeable Share Provisions that ExchangeCo will not be permitted as a result
of liquidity or solvency provisions of applicable law to redeem all such
Retracted Shares, subject to receipt by the Trustee of written notice to that
effect from ExchangeCo and provided that JAG shall not have exercised the
Retraction Call Right with respect to the Retracted Shares and that the Holder
has not revoked the retraction request delivered by the Holder to ExchangeCo
pursuant to Section 6.1 of the Exchangeable Share Provisions, the retraction
request will constitute and will be deemed to constitute notice from the Holder
to the Trustee instructing the Trustee to exercise the Exchange Right with
respect to those Retracted Shares which ExchangeCo is unable to redeem. In any
such event, ExchangeCo hereby agrees with the Trustee and in favour of the
Holder immediately to notify the Trustee of such prohibition against
ExchangeCo's redeeming all of the Retracted Shares and immediately to forward or
cause to be forwarded to the Trustee all relevant materials delivered by the
Holder to ExchangeCo or to the transfer agent of the Exchangeable Shares
(including without limitation a copy of the retraction request delivered
pursuant to Section 6.1 of the Exchangeable Share Provisions) in connection with
such proposed redemption of the Retracted Shares, and the Trustee will thereupon
exercise the Exchange Right with respect to the Retracted Shares which
ExchangeCo is not permitted to redeem and will require JAG to purchase such
shares in accordance with the provisions of this Article 5.

     

    
      	
              5.8 

            	
              Stamp
      or Other Transfer Taxes

            

    

     

    Upon any
sale of Exchangeable Shares to JAG pursuant to the Exchange Put Right, the
Exchange Right or the Automatic Exchange Rights, the share certificate or
certificates representing JAG Common Stock to be delivered in connection with
the payment of the total purchase price therefor shall be issued in the name of
the Holder of the Exchangeable Shares so sold or in such names as such Holder
may otherwise direct in writing without charge to the holder of the Exchangeable
Shares so sold, provided, however, that such Holder:

     

    
      	
               
      

            	
              (a)

            	
              shall
      pay (and none of JAG, ExchangeCo, JAG Holdco, CardioGenics or the Trustee
      shall be required to pay) any documentary, stamp, transfer or other
      similar taxes that may be payable in respect of any transfer involved in
      the issuance or delivery of such shares to a person other than such
      Holder; or

            

    

     

    
      	
               
      

            	
              (b)

            	
              shall
      have established to the satisfaction of the Trustee, JAG and CardioGenics
      that such taxes, if any, have been
paid.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 15 -

     

    JAG,
ExchangeCo, JAG Holdco and the Trustee (as directed in writing by JAG) shall be
entitled to deduct and withhold from any consideration otherwise payable under
this Agreement to any Holder such amounts as JAG, ExchangeCo, JAG Holdco or the
Trustee is required or permitted to deduct and withhold with respect to such
payment under the Income Tax Act (Canada), the United States Internal Revenue
Code of 1986 or any provision of provincial, state, local or foreign tax law, in
each case as amended or succeeded unless such Holder provides to JAG and the
Trustee certificates or such other assurances as are provided for under the
Income Tax Act (Canada), the United States Internal Revenue Code of 1986 or such
other applicable taxation provisions. To the extent that amounts are so
withheld, such withheld amounts shall be treated for all purposes as having been
paid to the Holder in respect of which such deduction and withholding was made,
provided that such withheld amounts are actually remitted to the appropriate
taxing authority as and when required. To the extent that the amount so required
or permitted to be deducted or withheld from any payment to a Holder exceeds the
cash portion, if any, of the consideration otherwise payable to the Holder, JAG,
ExchangeCo, JAG Holdco and the Trustee are hereby authorized to sell or
otherwise dispose of such portion of the consideration as is necessary to
provide sufficient funds to JAG, ExchangeCo, JAG Holdco or the Trustee, as the
case may be, to enable it to comply with such deduction or withholding
requirement and JAG, ExchangeCo, JAG Holdco or the Trustee, as the case may be,
shall notify the Holder and remit to such Holder any unapplied balance of the
net proceeds of such sale.

     

    
      	
              5.9 

            	
              Notice
      of Insolvency Event

            

    

     

    Immediately
upon the occurrence of an Insolvency Event or any event which with the giving of
notice or the passage of time or both would be an Insolvency Event, ExchangeCo
and JAG shall give written notice thereof to the Trustee. As soon as practicable
after receiving notice from ExchangeCo or JAG of the occurrence of an Insolvency
Event, the Trustee will mail to each Holder, at the expense of JAG, a notice of
such Insolvency Event in the form provided by JAG, which notice shall contain a
brief statement of the right of the Holders with respect to the Exchange
Right.

     

    
      	
              5.10 

            	
              Qualification
      of JAG Common Stock

            

    

     

    JAG
covenants with the Trustee for the benefit of Holders that if any shares of JAG
Common Stock to be issued and delivered pursuant to the Exchange Put Right, the
Exchange Right or the Automatic Exchange Rights require registration or
qualification with or approval of or the filing of any document including any
prospectus or similar document, the taking of any proceeding with or the
obtaining of any order, ruling or consent from any governmental or regulatory
authority under any Canadian or United States federal, provincial or state law
or regulation or pursuant to the rules and regulations of any regulatory
authority, or the fulfillment of any other legal requirement (collectively, the
"Applicable
Laws") before such shares may be issued and delivered by JAG to the
initial holder thereof (other than ExchangeCo) or in order that such shares may
be freely traded thereafter (other than any restrictions on transfer by reason
of a holder being a "control person" of JAG for purposes of Canadian provincial
securities law or an "affiliate" of JAG for purposes of United States federal or
state securities law), JAG will in good faith expeditiously take all such
actions and do all such things as are necessary to cause such shares of JAG
Common Stock to be and remain duly registered, qualified or approved to the
extent expressly provided in the Share Purchase Agreement. JAG represents and
warrants that it has in good faith taken all actions and done all things as are
necessary under Applicable Laws as they exist on the date hereof to cause the
shares of JAG Common Stock to be issued and delivered pursuant to the Exchange
Put Right, the Exchange Right and the Automatic Exchange Rights and to be freely
tradeable thereafter (other than restrictions on transfer by reason of a holder
being a "control person" of JAG for the purposes of Canadian provincial
securities law or an "affiliate" of JAG for the purposes of United States
federal or state securities law). JAG will in good faith expeditiously take all
such actions and do all such things as are necessary to cause all shares of JAG
Common Stock to be delivered pursuant to the Exchange Put Right, the Exchange
Right or the Automatic Exchange Rights to be listed, quoted or posted for
trading on all stock exchanges and quotation systems on which such shares are
listed, quoted or posted for trading at such time.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 16 -

     

    
      	
              5.11 

            	
              Reservation
      of Shares of JAG Common
Stock

            

    

     

    JAG
hereby represents, warrants and covenants with the Trustee for the benefit of
the Holders that, on or prior to the Effective Date, and thereafter as required,
it will irrevocably reserve for issuance and will at all times keep available,
free from pre-emptive and other rights, out of its authorized and unissued
capital stock such number of shares of JAG Common Stock:

     

    
      	
               
      

            	
              (a)

            	
              as
      is equal to the sum of

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      number of Exchangeable Shares issued and outstanding from time to time,
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      number of shares of JAG Common Stock issuable pursuant to the JAG Stock
      Options outstanding on the date hereof;
and

            

    

     

    
      	
               
      

            	
              (b)

            	
              as
      are now and may hereafter be required to enable and permit ExchangeCo to
      meet its obligations hereunder, under the Certificate of Incorporation of
      JAG, under the Support Agreement, under the Exchangeable Share Provisions
      and under any other security or commitment pursuant to the Arrangement
      with respect to which JAG may now or hereafter be required to issue shares
      of JAG Common Stock (the “Exchangeable
      Share Reservation”).

            

    

     

    As each
Exchangeable Share is exchanged for the applicable number of shares of JAG
Common Stock, the Exchangeable Share Reservation shall promptly be reduced by
the number of shares of JAG Common Stock issued in connection with any such
exchange.

     

    
      	
              5.12 

            	
              Automatic
      Exchange on Liquidation of
JAG

            

    

     

    
      	
               
      

            	
              (a)

            	
              JAG
      will give the Trustee written notice of each of the following events at
      the time set forth below:

            

    

     

    
      	
               
      

            	
              (i)

            	
              in
      the event of any determination by the board of directors of JAG to
      institute voluntary liquidation, dissolution or winding-up proceedings
      with respect to JAG or to effect any other distribution of assets of JAG
      among its stockholders for the purpose of winding-up its affairs, at least
      60 days prior to the proposed effective date of such liquidation,
      dissolution, winding-up or other distribution;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              immediately,
      upon the earlier of

            

    

     

    
      	
               
      

            	
              (A)

            	
              receipt
      by JAG of notice of, and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 17 -

     

    
      	
               
      

            	
              (B)

            	
              JAG
      otherwise becoming aware of any threatened or instituted claim, suit,
      petition or other proceedings with respect to the involuntary liquidation,
      dissolution or winding-up of JAG or to effect any other distribution of
      assets of JAG among its stockholders for the purpose of winding up its
      affairs.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Immediately
      following receipt by the Trustee from JAG of notice of any event (a "Liquidation
      Event") contemplated by Section 5.12(a) above, the Trustee will
      give notice thereof to the Holders. Such notice will be provided by JAG to
      the Trustee and shall include a brief description of the automatic
      exchange of Exchangeable Shares for shares of JAG Common Stock provided
      for in Section 5.12(c) below.

            

    

     

    
      	
               
      

            	
              (c)

            	
              In
      order that the Holders will be able to participate on a pro rata basis
      with the holders of JAG Common Stock in the distribution of assets of JAG
      in connection with a Liquidation Event, immediately prior to the effective
      time (the "Liquidation
      Event Effective Time") of a Liquidation Event, all of the then
      outstanding Exchangeable Shares shall be automatically exchanged for
      shares of JAG Common Stock. To effect such automatic exchange, JAG or, at
      the option of JAG, JAG Holdco, shall be deemed to have purchased each
      Exchangeable Share outstanding immediately prior to the Liquidation Event
      Effective Time and held by Holders, and each Holder shall be deemed to
      have sold the Exchangeable Shares held by it at such time, for a purchase
      price per share equal to the Exchangeable Share Price applicable at such
      time. In connection with such automatic exchange, JAG will provide to the
      Trustee an Officer's Certificate setting forth the calculation of the
      Exchangeable Share Price for each Exchangeable
  Share.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      closing of the transaction of purchase and sale contemplated by Section
      5.12(c) above shall be deemed to have occurred immediately prior to the
      Liquidation Event Effective Time, and each Holder of Exchangeable Shares
      shall be deemed to have transferred to JAG or JAG Holdco, as the case may
      be, all of the Holder's right, title and interest in and to such
      Exchangeable Shares and the related interest in the Trust Estate and shall
      cease to be a holder of such Exchangeable Shares, and JAG or JAG Holdco,
      as the case may be, shall deliver to the Holder the Exchangeable Share
      Consideration deliverable upon the automatic exchange of Exchangeable
      Shares. Concurrently with such Holder's ceasing to be a holder of
      Exchangeable Shares, the Holder shall be considered and deemed for all
      purposes to be the holder of the shares of JAG Common Stock issued to it
      pursuant to the automatic exchange of Exchangeable Shares for JAG Common
      Stock, and the certificates held by the Holder previously representing the
      Exchangeable Shares exchanged by the Holder with JAG or JAG Holdco, as the
      case may be, pursuant to such automatic exchange shall thereafter be
      deemed to represent the shares of JAG Common Stock issued to the Holder by
      JAG or JAG Holdco, as the case may be, pursuant to such automatic
      exchange. Upon the request of a Holder and the surrender by the Holder of
      Exchangeable Share certificates deemed to represent shares of JAG Common
      Stock, duly endorsed in blank and accompanied by such instruments of
      transfer as JAG may reasonably require, JAG or JAG Holdco, as the case may
      be, shall deliver or cause to be delivered to the Holder certificates
      representing the shares of JAG Common Stock of which the Holder is the
      holder. Notwithstanding the foregoing, until each Holder is actually
      entered on the register of holders of JAG Common Stock, such Holder shall
      be deemed to still be a holder of the transferred Exchangeable Shares for
      purposes of all Voting Rights with respect
  thereto.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 18 -

     

    ARTICLE
VI

    RESTRICTIONS
ON ISSUANCE OF JAG SPECIAL VOTING STOCK

     

    6.1                          
During the term of this agreement, JAG will not issue any shares of JAG Special
Voting Stock in addition to the Voting Share.

     

    ARTICLE
VII

    CONCERNING
THE TRUSTEE

     

    
      	
              7.1 

            	
              Powers
      and Duties of the Trustee

            

    

     

    The
rights, powers and authorities of the Trustee under this agreement, in its
capacity as trustee of the Trust, shall include:

     

    
      	
               
      

            	
              (a)

            	
              receipt
      and deposit of the Voting Share from JAG as trustee for and on behalf of
      the Holders in accordance with the provisions of this
      agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              granting
      proxies and distributing materials to Holders as provided in this
      agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              voting
      the Holder Votes in accordance with the provisions of this
      agreement;

            

    

     

    
      	
               
      

            	
              (d)

            	
              receiving
      the grant of the Exchange Put Right and the Exchange Right and the
      Automatic Exchange Rights from JAG as trustee for and on behalf of the
      Holders in accordance with the provisions of this
    agreement;

            

    

     

    
      	
               
      

            	
              (e)

            	
              exercising
      the Exchange Put Right and the Exchange Right and enforcing the benefit of
      the Automatic Exchange Rights, in each case in accordance with the
      provisions of this agreement, and in connection therewith receiving from
      Holders Exchangeable Shares and other requisite documents and distributing
      to such Holders the shares of JAG Common Stock and cheques, if any, to
      which such Holders are entitled upon the exercise of the Exchange Put
      Right and the Exchange Right or pursuant to the Automatic Exchange Rights,
      as the case may be;

            

    

     

    
      	
               
      

            	
              (f)

            	
              holding
      title to the Trust Estate;

            

    

     

    
      	
               
      

            	
              (g)

            	
              investing
      any moneys forming, from time to time, a part of the Trust Estate as
      provided in this agreement;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 19 -

     

    
      	
               
      

            	
              (h)

            	
              taking
      action at the direction of a Holder or Holders to enforce the obligations
      of JAG under this agreement; and

            

    

     

    
      	
               
      

            	
              (i)

            	
              taking
      such other actions and doing such other things as are specifically
      provided in this agreement.

            

    

     

    In the
exercise of such rights, powers and authorities, the Trustee shall have (and is
granted) such incidental and additional rights, powers and authority not in
conflict with any of the provisions of this agreement as the Trustee, acting in
good faith and in the reasonable exercise of its discretion, may deem necessary,
appropriate or desirable to effect the purpose of the Trust. Any exercise of
such discretionary rights, powers and authorities by the Trustee shall be final,
conclusive and binding upon all persons. For greater certainty, the Trustee
shall have only those duties as are set out specifically in this agreement. The
Trustee in exercising its rights, powers, duties and authorities hereunder shall
act honestly and in good faith with a view to the best interests of the Holders
and shall exercise the care, diligence and skill that a reasonably prudent
trustee would exercise in comparable circumstances. The Trustee shall not be
bound to give any notice or do or take any act, action or proceeding by virtue
of the powers conferred on it hereby unless and until it shall be specifically
required to do so under the terms hereof nor shall the Trustee be required to
take any notice of, or to do or to take any act, action or proceeding as a
result of any default or breach of any provision hereunder, unless and until
notified in writing of such default or breach, which notices shall distinctly
specify the default or breach desired to be brought to the attention of the
Trustee and in the absence of such notice the Trustee may for all purposes of
this agreement conclusively assume that no default or breach has been made in
the observance or performance of any of the representations, warranties,
covenants, agreements or conditions contained herein.

     

    
      	
              7.2 

            	
              No
      Conflict of Interest

            

    

     

    The
Trustee represents to ExchangeCo and JAG that at the date of execution and
delivery of this agreement there exists no material conflict of interest in the
role of the Trustee as a fiduciary hereunder and the role of the Trustee in any
other capacity. The Trustee shall, within 90 days after it becomes aware that
such a material conflict of interest exists, either eliminate such material
conflict of interest or resign in the manner and with the effect specified in
Article 10 hereof. If, notwithstanding the foregoing provisions of this Section
7.2, the Trustee has such a material conflict of interest, the validity and
enforceability of this agreement shall not be affected in any manner whatsoever
by reason only of the existence of such material conflict of interest. If the
Trustee contravenes the foregoing provisions of this Section 7.2, any interested
party may apply to the superior court of the province in which ExchangeCo has
its registered office for an order that the Trustee be replaced as trustee
hereunder.

     

    
      	
              7.3 

            	
              Dealings
      with Transfer Agents, Registrars,
Etc.

            

    

     

    ExchangeCo
and JAG irrevocably authorize the Trustee, from time to time, to:

     

    
      	
               
      

            	
              (a)

            	
              consult,
      communicate and otherwise deal with the respective registrars and transfer
      agents, and with any such subsequent registrar or transfer agent, of the
      Exchangeable Shares and JAG Common Stock;
and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 20 -

     

    
      	
               
      

            	
              (b)

            	
              requisition,
      from time to time,

            

    

     

    
      	
               
      

            	
              (i)

            	
              from
      any such registrar or transfer agent any information
      readily   available from the records maintained by it which
      the Trustee may   reasonably require for the discharge of
      its duties and responsibilities   under this agreement,
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              from
      the transfer agent of JAG Common Stock, and any subsequent transfer agent
      of such shares, to complete the exercise from time to time of the Exchange
      Put Right, the Exchange Right and the Automatic Exchange Rights in the
      manner specified in Article 5 hereof, the share certificates issuable upon
      such exercise.

            

    

     

    ExchangeCo
and JAG irrevocably authorize their respective registrars and transfer agents to
comply with all such requests. JAG covenants that it will supply its transfer
agent with duly executed share certificates for the purpose of completing the
exercise from time to time of the Exchange Put Right, the Exchange Right and the
Automatic Exchange Rights, in each case pursuant to Article 5
hereof.

     

    
      	
              7.4 

            	
              Books
      and Records

            

    

     

    The
Trustee shall keep available for inspection by JAG and ExchangeCo, at the
Trustee's principal transfer office in Toronto, Ontario, correct and complete
books and records of account relating to the Trustee's actions under this
agreement, including without limitation all information relating to mailings and
instructions to and from Holders and all transactions pursuant to the Voting
Rights, the Exchange Put Right, the Exchange Right and the Automatic Exchange
Rights for the term of this agreement. So long as the Voting Share is on deposit
with the Trustee, and as requested from time to time by JAG and ExchangeCo, the
Trustee shall transmit to JAG and ExchangeCo a brief report, dated as of the
preceding December 31 of the applicable year, with respect to:

     

    
      	
               
      

            	
              (a)

            	
              the
      property and funds comprising the Trust Estate as of that
      date;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      number of exercises of the Exchange Put Right and the Exchange Right, if
      any, and the aggregate number of Exchangeable Shares received by the
      Trustee on behalf of Holders in consideration of the issue and delivery by
      JAG of shares of JAG Common Stock in connection with the Exchange Put
      Right and the Exchange Right, during the calendar year ended on such date;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              all
      other actions taken by the Trustee in the performance of its duties under
      this agreement which it had not previously
  reported.

            

    

     

    
      	
              7.5 

            	
              Income
      Tax Returns and Reports

            

    

     

    ExchangeCo
shall, to the extent necessary, prepare and file appropriate United States and
Canadian income tax returns and any other returns or reports as may be required
by applicable law or pursuant to the rules and regulations of any securities
exchange or other trading system through which the Exchangeable Shares are
traded and, in connection therewith, may obtain the advice and assistance of
such experts as ExchangeCo may consider necessary or advisable. At JAG's
discretion, JAG may retain such experts for purposes of providing such advice
and assistance upon it becoming aware of any obligation to report or withhold
and remit any amounts pursuant to this section.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 21 -

     

    
      	
              7.6

            	
              Indemnification
      Prior to Certain Actions by
Trustee

            

    

     

    The
Trustee shall exercise any or all of the rights, duties, powers or authorities
vested in it by this agreement at the request, order or direction of any Holder
upon such Holder's furnishing to the Trustee reasonable funding, security and
indemnity against the costs, expenses and liabilities which may be incurred by
the Trustee therein or thereby; provided that no Holder shall be obligated to
furnish to the Trustee any such funding, security or indemnity in connection
with the exercise by the Trustee of any of its rights, duties, powers and
authorities with respect to the Voting Share pursuant to Article 4 hereof,
subject to Section 7.15 hereof, and with respect to the Exchange Put Right and
the Exchange Right pursuant to Article 5 hereof, subject to Section 7.15
hereof, and with respect to the Automatic Exchange Rights pursuant to Article 5
hereof. None of the provisions contained in this agreement shall require the
Trustee to expend or risk its own funds or otherwise incur financial liability
in the exercise of any of its rights, powers, duties or authorities unless
funded, given funds, security and indemnified as aforesaid.

     

    
      	
              7.7

            	
              Actions
      by Holders

            

    

     

    No Holder
shall have the right to institute any action, suit or proceeding or to exercise
any other remedy authorized by this agreement for the purpose of enforcing any
of its rights or for the execution of any trust or power hereunder unless the
Holder has requested the Trustee to take or institute such action, suit or
proceeding and furnished the Trustee with the funding, security and indemnity
referred to in Section 7.6 hereof and the Trustee shall have failed to act
within a reasonable time thereafter. In such case, but not otherwise, the Holder
shall be entitled to take proceedings in any court of competent jurisdiction
such as the Trustee might have taken; it being understood and intended that no
one or more Holders shall have any right in any manner whatsoever to affect,
disturb or prejudice the rights hereby created by any such action, or to enforce
any right hereunder or under the Voting Rights, the Exchange Put Right, the
Exchange Right or the Automatic Exchange Rights, except subject to the
conditions and in the manner herein provided, and that all powers and trusts
hereunder shall be exercised and all proceedings at law shall be instituted, had
and maintained by the Trustee, except only as herein provided, and in any event
for the equal benefit of all Holders.

     

    
      	
              7.8

            	
              Reliance
      upon Declarations

            

    

     

    The
Trustee shall not be considered to be in contravention of any of its rights,
powers, duties and authorities hereunder if, when required, it acts and relies
in good faith upon lists, mailing labels, notices, statutory declarations,
certificates, opinions, reports or other papers or documents furnished pursuant
to the provisions hereof or required by the Trustee to be furnished to it in the
exercise of its rights, powers, duties and authorities hereunder, and such
lists, mailing labels, notices, statutory declarations, certificates, opinions,
reports or other papers or documents comply with the provisions of Section 7.9
hereof, if applicable, and with any other applicable provisions of this
agreement.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 22 -

     

    
      	
              7.9

            	
              Evidence
      and Authority to Trustee

            

    

     

    ExchangeCo
and/or JAG shall furnish to the Trustee evidence of compliance with the
conditions provided for in this agreement relating to any action or step
required or permitted to be taken by ExchangeCo and/or JAG or the Trustee under
this agreement or as a result of any obligation imposed under this agreement,
including, without limitation, in respect of the Voting Rights or the Exchange
Put Right, the Exchange Right or the Automatic Exchange Rights and the taking of
any other action to be taken by the Trustee at the request of or on the
application of ExchangeCo and/or JAG forthwith if and when:

     

    
      	
               
      

            	
              (a)

            	
              such
      evidence is required by any other section of this agreement to be
      furnished to the Trustee in accordance with the terms of this Section 7.9;
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Trustee, in the exercise of its rights, powers, duties and authorities
      under this agreement, gives ExchangeCo and/or JAG written notice requiring
      it to furnish such evidence in relation to any particular action or
      obligation specified in such
notice.

            

    

     

    Such
evidence shall consist of an Officer's Certificate of ExchangeCo and/or JAG or a
statutory declaration or a certificate made by persons entitled to sign an
Officer's Certificate stating that any such condition has been complied with in
accordance with the terms of this agreement.

     

    Whenever
such evidence relates to a matter other than the Voting Rights or the Exchange
Put Right, the Exchange Right or the Automatic Exchange Rights, and except as
otherwise specifically provided herein, such evidence may consist of a report or
opinion of any solicitor, auditor, accountant, appraiser, valuator, engineer or
other expert or any other person whose qualifications give authority to a
statement made by him, provided that, if such report or opinion is furnished by
a director, officer or employee of ExchangeCo and/or JAG, it shall be in the
form of an Officer's Certificate or a statutory declaration.

     

    Each
statutory declaration, certificate, opinion or report furnished to the Trustee
as evidence of compliance with a condition provided for in this agreement shall
include a statement by the person giving the evidence:

     

    
      	
               
      

            	
              (i)

            	
              declaring
      that such person has read and understands the provisions of this agreement
      relating to the condition in
question;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              describing
      the nature and scope of the examination or investigation upon which such
      person based the statutory declaration, certificate, statement or opinion;
      and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              declaring
      that such person has made such examination or investigation as such person
      believes is necessary to enable such person to make the statements or give
      the opinions contained or expressed
therein.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 23 -

     

    
      	
              7.10

            	
              Experts,
      Advisers and Agents

            

    

     

    The
Trustee may:

     

    
      	
               
      

            	
              (a)

            	
              in
      relation to these presents act and rely on the opinion or advice of or
      information obtained from or prepared by any solicitor, auditor,
      accountant, appraiser, valuer, engineer or other expert, whether retained
      by the Trustee or by ExchangeCo and/or JAG or otherwise, and may employ
      such assistants as may be necessary to the proper determination and
      discharge of its powers and duties and determination of its rights
      hereunder and may pay proper and reasonable compensation for all such
      legal and other advice or assistance as aforesaid;
  and

            

    

     

    
      	
               
      

            	
              (b)

            	
              employ
      such agents and other assistants as it may reasonably require for the
      proper determination and discharge of its powers and duties hereunder, and
      may pay reasonable remuneration for all services performed for it (and
      shall be entitled to receive reasonable remuneration for all services
      performed by it) in the discharge of the trusts hereof and compensation
      for all disbursements, costs and expenses made or incurred by it in the
      determination and discharge of its duties hereunder and in the management
      of the Trust.

            

    

     

    
      	
              7.11

            	
              Investment
      of Moneys Held by Trustee

            

    

     

    Unless
otherwise provided in this agreement, any moneys held by or on behalf of the
Trustee which under the terms of this agreement may or ought to be invested or
which may be on deposit with the Trustee or which may be in the hands of the
Trustee, may be invested and reinvested in the name or under the control of the
Trustee in securities in which, under the laws of the Province of Ontario,
trustees are authorized to invest trust moneys; provided that such securities
are stated to mature within two years after their purchase by the Trustee, and
the Trustee shall so invest such moneys on the written direction of ExchangeCo.
Pending the investment of any moneys as hereinbefore provided, such moneys may
be deposited in the name of the Trustee in any chartered bank in Canada or, with
the consent of ExchangeCo, in the deposit department of any loan or trust
company authorized to accept deposits under the laws of Canada or any province
thereof at the rate of interest then current on similar deposits.

     

    
      	
              7.12

            	
              Trustee
      Not Required to Give
Security

            

    

     

    The
Trustee shall not be required to give any bond or security in respect of the
execution of the trusts, rights, duties, powers and authorities of this
agreement or otherwise in respect of the premises.

     

    
      	
              7.13

            	
              Trustee
      Not Bound to Act on Request

            

    

     

    Except as
in this agreement otherwise specifically provided, the Trustee shall not be
bound to act in accordance with any direction or request of ExchangeCo and/or
JAG or of the directors thereof until a duly authenticated copy of the
instrument or resolution containing such direction or request shall have been
delivered to the Trustee, and the Trustee shall be empowered to act and rely
upon any such copy purporting to be authenticated and believed by the Trustee to
be genuine.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 24 -

     

    
      	
              7.14

            	
              Conflicting
      Claims

            

    

     

    If
conflicting claims or demands are made or asserted with respect to any interest
of any Holder in any Exchangeable Shares, including any disagreement between the
heirs, representatives, successors or assigns succeeding to all or any part of
the interest of any Holder in any Exchangeable Shares resulting in conflicting
claims or demands being made in connection with such interest, then the Trustee
shall be entitled, at its sole discretion, to refuse to recognize or to comply
with any such claim or demand. In so refusing, the Trustee shall not exercise
any Voting Rights, Exchange Put Right, Exchange Right or Automatic Exchange
Rights subject to such conflicting claims or demands and, in so doing, the
Trustee shall not be or become liable to any person on account of such election
or its failure or refusal to comply with any such conflicting claims or demands.
The Trustee shall be entitled to continue to refrain from acting and to refuse
to act until:

     

    
      	
               
      

            	
              (a)

            	
              the
      rights of all adverse claimants with respect to the Voting Rights,
      Exchange Put Right, Exchange Right or Automatic Exchange Rights subject to
      such conflicting claims or demands have been adjudicated by a final
      judgment of a court of competent jurisdiction;
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              all
      differences with respect to the Voting Rights, the Exchange Put Right,
      Exchange Right or Automatic Exchange Rights subject to such conflicting
      claims or demands have been conclusively settled by a valid written
      agreement binding on all such adverse claimants, and the Trustee shall
      have been furnished with an executed copy of such
    agreement.

            

    

     

    If the
Trustee elects to recognize any claim or comply with any demand made by any such
adverse claimant, it may in its discretion require such claimant to furnish such
surety bond or other security satisfactory to the Trustee as it shall deem
appropriate fully to indemnify it as between all conflicting claims or
demands.

     

    
      	
              7.15

            	
              Acceptance
      of Trust

            

    

     

    The
Trustee hereby accepts the Trust created and provided for by and in this
agreement and agrees to perform the same upon the terms and conditions herein
set forth and to hold all rights, privileges and benefits conferred hereby and
by law in trust for the various persons who shall from time to time be Holders,
subject to all the terms and conditions herein set forth.

     

    ARTICLE
VIII

    COMPENSATION

     

    JAG and
ExchangeCo jointly and severally agree to pay to the Trustee reasonable
compensation for all of the services rendered and actions taken by it under this
agreement and will reimburse the Trustee for all reasonable expenses (including
but not limited to taxes, compensation paid to experts, agents and advisors, and
travel expenses) and disbursements, including the cost and expense of any suit
or litigation of any character and any proceedings before any governmental
agency, reasonably incurred by the Trustee in connection with its rights and
duties under this agreement; provided that JAG and ExchangeCo shall have no
obligation to reimburse the Trustee for any expenses or disbursements paid,
incurred or suffered by the Trustee in any suit or litigation in which the
Trustee is determined to have acted in bad faith or with negligence or willful
misconduct.  The Trustee shall be obligated to provide only one
account or invoice to ExchangeCo from time to time in connection with its
appointment hereunder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 25 -

     

    ARTICLE
IX

    INDEMNIFICATION
AND LIMITATION OF LIABILITY

     

    
      	
              9.1

            	
              Indemnification
      of the Trustee

            

    

     

    JAG and
ExchangeCo jointly and severally agree to indemnify and hold harmless the
Trustee and each of its partners, officers, employees and agents appointed and
acting in accordance with this agreement (collectively, the "Indemnified
Parties") against
all claims, losses, damages, costs, penalties, fines and reasonable expenses
(including reasonable expenses of the Trustee's legal counsel) which, without
fraud, negligence, willful misconduct or bad faith on the part of such
Indemnified Party, may be paid, incurred or suffered by the Indemnified Party by
reason of or as a result of the Trustee's acceptance or administration of the
Trust, its compliance with its duties set forth in this agreement, or any
written or oral instructions delivered to the Trustee by JAG or ExchangeCo
pursuant hereto. In no case shall JAG or ExchangeCo be liable under this
indemnity for any claim against any of the Indemnified Parties unless JAG and
ExchangeCo shall be notified by the Trustee of the written assertion of a claim
or of any action commenced against the Indemnified Parties, promptly after any
of the Indemnified Parties shall have received any such written assertion of a
claim or shall have been served with a summons or other first legal process
giving information as to the nature and basis of the claim. Subject to (ii)
below, JAG and ExchangeCo shall be entitled to participate at their own expense
in the defense and, if JAG or ExchangeCo so elect at any time after receipt of
such notice, either of them may assume the defense of any suit brought to
enforce any such claim. The Trustee shall have the right to employ separate
counsel in any such suit and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of the Trustee unless: (i)
the employment of such counsel has been authorized by JAG or ExchangeCo, such
authorization not to be unreasonably withheld; or (ii) the named parties to any
such suit include both the Trustee and JAG or ExchangeCo and the Trustee shall
have been advised by counsel acceptable to JAG or ExchangeCo that there may be
one or more legal defenses available to the Trustee that are different from or
in addition to those available to JAG or ExchangeCo and that an actual or
potential conflict of interest exists (in which case JAG and ExchangeCo shall
not have the right to assume the defense of such suit on behalf of the Trustee,
but shall be liable to pay the reasonable fees and expenses of counsel for the
Trustee). This indemnity shall survive the resignation or removal of the Trustee
and the termination of the trust.

     

    
      	
              9.2

            	
              Limitation
      of Liability

            

    

     

    The
Trustee shall not be held liable for any loss which may occur by reason of
depreciation of the value of any part of the Trust Estate or any loss incurred
on any investment of funds pursuant to this agreement, except to the extent that
such loss is attributable to the fraud, negligence, willful misconduct or bad
faith on the part of the Trustee.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 26 -

     

    ARTICLE
X

    CHANGE
OF TRUSTEE

     

    
      	
              10.1

            	
              Resignation

            

    

     

    The
Trustee, or any trustee hereafter appointed, may at any time resign by giving
written notice of such resignation to JAG and ExchangeCo specifying the date on
which it desires to resign, provided that such notice shall never be given less
than 60 days before such desired resignation date unless JAG and ExchangeCo
otherwise agree and provided further that such resignation shall not take effect
until the date of the appointment of a successor trustee and the acceptance of
such appointment by the successor trustee. Upon receiving such notice of
resignation, JAG and ExchangeCo shall promptly appoint a successor trustee by
written instrument, in duplicate, one copy of which shall be delivered to the
resigning trustee and one copy to the successor trustee. Failing acceptance by a
successor trustee, a successor trustee may be appointed by an order of the
superior court of the province in which ExchangeCo has its registered office
upon application of one or more of the parties hereto.

     

    
      	
              10.2

            	
              Removal

            

    

     

    The
Trustee, or any trustee hereafter appointed, may be removed with or without
cause, at any time on 60 days prior notice by written instrument executed by JAG
and ExchangeCo, in duplicate, one copy of which shall be delivered to the
trustee so removed and one copy to the successor trustee; provided that, in
connection with such removal, provision is made for a replacement trustee
similar to that contemplated in Section 10.1.

     

    
      	
              10.3

            	
              Successor
      Trustee

            

    

     

    Any
successor trustee appointed as provided under this agreement shall execute,
acknowledge and deliver to JAG and ExchangeCo and to its predecessor trustee an
instrument accepting such appointment. Thereupon the resignation or removal of
the predecessor trustee shall become effective and such successor trustee,
without any further act, deed or conveyance, shall become vested with all the
rights, powers, duties and obligations of its predecessor under this agreement,
with like effect as if originally named as trustee in this agreement. However,
on the written request of JAG and ExchangeCo or of the successor trustee, the
trustee ceasing to act shall, upon payment of any amounts then due it pursuant
to the provisions of this agreement, execute and deliver an instrument
transferring to such successor trustee all the rights and powers of the trustee
so ceasing to act. Upon the request of any such successor trustee, JAG,
ExchangeCo and such predecessor trustee shall execute any and all instruments in
writing for more fully and certainly vesting in and confirming to such successor
trustee all such rights and powers.

     

    
      	
              10.4

            	
              Notice
      of Successor Trustee

            

    

     

    Upon
acceptance of appointment by a successor trustee as provided herein, JAG and
ExchangeCo shall cause to be mailed notice of the succession of such trustee
hereunder to each Holder specified in a List. If JAG or ExchangeCo shall fail to
cause such notice to be mailed within 10 days after acceptance of appointment by
the successor trustee, the successor trustee shall cause such notice to be
mailed at the expense of JAG and ExchangeCo.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 27 -

     

    ARTICLE
XI

    SUCCESSORS

     

    
      	
              11.1

            	
              Certain
      Requirements in Respect of Combination,
  Etc.

            

    

     

    Neither
JAG nor ExchangeCo shall enter into any transaction (whether by way of
reconstruction, reorganization, consolidation, merger, transfer, sale, lease or
otherwise) whereby all or substantially all of its undertaking, property and
assets would become the property of any other Person or, in the case of a
merger, of the continuing corporation resulting therefrom, but may do so
if:

     

    
      	
               
      

            	
              (a)

            	
              such
      other Person or continuing corporation (the "Successor"),
      by operation of law, becomes, without further action, bound by the terms
      and provisions of this agreement or, if not so bound, executes, prior to
      or contemporaneously with the consummation of such transaction an
      agreement supplemental hereto and such other instruments (if any) as are
      satisfactory to the Trustee and in the opinion of legal counsel to the
      Trustee are necessary or advisable to evidence the assumption by the
      Successor of liability for all moneys payable and property deliverable
      hereunder, the covenant of such Successor to pay and deliver or cause to
      be delivered the same and its agreement to observe and perform all the
      covenants and obligations of JAG or ExchangeCo, as the case may be, under
      this agreement; and

            

    

     

    
      	
               
      

            	
              (b)

            	
              such
      transaction shall, to the satisfaction of the Trustee and in the opinion
      of legal counsel to the Trustee, be upon such terms which substantially
      preserve and do not impair in any material respect any of the rights,
      duties, powers and authorities of the Trustee or of the Holders
      hereunder.

            

    

     

    
      	
              11.2

            	
              Vesting
      of Powers in Successor

            

    

     

    Whenever
the conditions of Section 11. 1 hereof have been duly observed and performed,
the Trustee, if required by Section 11.1 hereof, the Successor and JAG or
ExchangeCo, as the case may be, shall execute and deliver the supplemental
agreement provided for in Article 12 hereof, and thereupon the Successor shall
possess and from time to time may exercise each and every right and power of JAG
or ExchangeCo, as the case may be, under this agreement in the name of JAG or
ExchangeCo, as the case may be, or otherwise and any act or proceeding by any
provision of this agreement required to be done or performed by the board of
directors or any officers of JAG or ExchangeCo may be done and performed with
like force and effect by the directors or officers of such
Successor.

     

    
      	
              11.3

            	
              Wholly-owned
      Subsidiaries

            

    

     

    Nothing
herein shall be construed as preventing the amalgamation or merger of any
wholly-owned subsidiary of JAG with or into JAG or the winding-up, liquidation
or dissolution of any wholly-owned subsidiary of JAG provided that all of the
assets of such subsidiary are transferred to JAG or another wholly-owned
subsidiary of JAG, and any such transactions are expressly permitted by this
Article 11.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 28 -

     

    ARTICLE
XII

    AMENDMENTS
AND SUPPLEMENTAL AGREEMENTS

     

    
      	
              12.1

            	
              Amendments,
      Modifications, Etc.

            

    

     

    Subject
to Sections 12.2 and 12.4, this agreement may not be amended, modified or waived
except by an agreement in writing executed by ExchangeCo, JAG and the Trustee
and approved by the Holders in accordance with Section 10.2 of the Exchangeable
Share Provisions. No amendment to or modification or waiver of any of the
provisions of this agreement otherwise permitted hereunder shall be effective
unless made in writing and signed by all of the parties hereto.

     

    
      	
              12.2

            	
              Ministerial
      Amendments

            

    

     

    Notwithstanding
the provisions of Section 12.1 hereof, the parties to this agreement may in
writing, at any time and from time to time, without the approval of the Holders,
amend or modify this agreement for the purposes of:

     

    
      	
               
      

            	
              (a)

            	
              adding
      to the covenants of any or all of the parties hereto for the protection of
      the Holders hereunder subject to the receipt by the Trustee of an opinion
      of its counsel that the addition of the proposed covenant is not
      prejudicial to the interests of the holders as a whole or the
      Trustee;

            

    

     

    
      	
               
      

            	
              (b)

            	
              making
      such amendments or modifications not inconsistent with this agreement as
      may be necessary or desirable with respect to matters or questions which,
      in the opinion of the board of directors of each of JAG and ExchangeCo and
      in the opinion of the Trustee and its counsel, having in mind the best
      interests of the Holders as a whole, it may be expedient to make, provided
      that such boards of directors and the Trustee and its counsel shall be of
      the opinion that such amendments and modifications will not be prejudicial
      to the interests of the Holders as a
whole;

            

    

     

    
      	
               
      

            	
              (c)

            	
              making
      such changes or corrections which, on the advice of counsel to ExchangeCo,
      JAG and the Trustee, are required for the purpose of curing or correcting
      any ambiguity or defect or inconsistent provision or clerical omission or
      mistake or manifest error; provided that the Trustee and its counsel and
      the board of directors of each of ExchangeCo and JAG shall be of the
      opinion that such changes or corrections will not be prejudicial to the
      interests of the Holders as a whole;
or

            

    

     

    
      	
               
      

            	
              (d)

            	
              making
      such changes as may be necessary or appropriate to implement or give
      effect to any assignment or assumption made pursuant to Section 14.9
      hereof.

            

    

     

    
      	
              12.3

            	
              Meeting
      to Consider Amendments

            

    

     

    ExchangeCo,
at the request of JAG, shall call a meeting or meetings of the Holders for the
purpose of considering any proposed amendment or modification requiring approval
pursuant hereto. Any such meeting or meetings shall be called and held in
accordance with the by-laws of ExchangeCo, the Exchangeable Share Provisions and
all applicable laws.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 29 -

     

    
      	
              12.4

            	
              Changes
      in Capital of JAG and
ExchangeCo

            

    

     

    At all
times after the occurrence of any event effected pursuant to Section 2.7 or
Section 2.8 of the Support Agreement, as a result of which either JAG Common
Stock or the Exchangeable Shares or both are in any way changed, this agreement
shall forthwith be amended and modified as necessary in order that it shall
apply with full force and effect, mutatis mutandis, to all new securities into
which JAG Common Stock or the Exchangeable Shares or both are so changed, and
the parties hereto shall execute and deliver a supplemental agreement giving
effect to and evidencing such necessary amendments and
modifications.

     

    
      	
              12.5

            	
              Execution
      of Supplemental Agreements

            

    

     

    From time
to time, ExchangeCo (when authorized by a resolution of its Board of Directors),
JAG (when authorized by a resolution of its board of directors) and the Trustee
may, subject to the provisions of these presents, and they shall, when so
directed by these presents, execute and deliver by their proper officers,
agreements or other instruments supplemental hereto, which thereafter shall form
part hereof, for any one or more of the following purposes:

     

    
      	
               
      

            	
              (a)

            	
              evidencing
      the succession of any Successors to JAG and the covenants of and
      obligations assumed by each such Successor in accordance with the
      provisions of Article 11 and the successor of any successor trustee in
      accordance with the provisions of Article
10;

            

    

     

    
      	
               
      

            	
              (b)

            	
              making
      any additions to, deletions from or alterations of the provisions of this
      agreement or the Voting Rights, the Exchange Right or the Automatic
      Exchange Rights which, in the opinion of the Trustee and its counsel, will
      not be prejudicial to the interests of the Holders as a whole or are in
      the opinion of counsel to the Trustee necessary or advisable in order to
      incorporate, reflect or comply with any legislation the provisions of
      which apply to JAG, ExchangeCo, the Trustee or this
    agreement;

            

    

     

    
      	
               
      

            	
              (c)

            	
              to
      implement or give effect to any assignment or assumption made pursuant to
      Section 14.9 hereof; and

            

    

     

    
      	
               
      

            	
              (d)

            	
              for
      any other purposes not inconsistent with the provisions of this agreement,
      including without limitation to make or evidence any amendment or
      modification to this agreement as contemplated hereby, provided that, in
      the opinion of the Trustee and its counsel, the rights of the Trustee and
      the Holders as a whole will not be prejudiced
  thereby.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 30 -

     

    ARTICLE
XIII

    TERMINATION

     

    
      	
              13.1

            	
              Term

            

    

     

    This
agreement and the Trust created hereby shall become effective on the Effective
Date and the Trust shall continue until the earliest to occur of the following
events:

     

    
      	
               
      

            	
              (a)

            	
              no
      outstanding Exchangeable Shares are held by a
  Holder;

            

    

     

    
      	
               
      

            	
              (b)

            	
              each
      of ExchangeCo and JAG elects in writing to terminate the Trust and such
      termination is approved by the Holders of the Exchangeable Shares in
      accordance with Section 10.1 of the Exchangeable Share Provisions;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              21
      years after the death of the last survivor of the descendants of Her
      Majesty Queen Elizabeth II of the United Kingdom of Great Britain and
      Northern Ireland living on the date of the creation of the
      Trust.

            

    

     

    
      	
              13.2

            	
              Survival
      of Agreement

            

    

     

    This
agreement shall survive any termination of the Trust and shall continue until
there are no Exchangeable Shares outstanding held by a Holder; provided,
however, that the provisions of Articles 8 and 9 hereof shall survive any such
termination of this agreement.

     

    ARTICLE
XIV

    GENERAL

     

    
      	
              14.1

            	
              Severability

            

    

     

    If any
provision of this agreement is held to be invalid, illegal or unenforceable, the
validity, legality or enforceability of the remainder of this agreement shall
not in any way be affected or impaired thereby, and the agreement shall be
carried out as nearly as possible in accordance with its original terms and
conditions.

     

    
      	
              14.2

            	
              Inurement

            

    

     

    This
agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns and to the benefit of the
Holders.

     

    
      	
              14.3

            	
              Notices
      to Parties

            

    

     

    All
notices and other communications between the parties hereunder shall be in
writing and shall be deemed to have been given if delivered personally or by
confirmed telecopy to the parties at the following addresses (or at such other
address for such party as shall be specified in like notice):

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 31 -

     

    
      	
               
      

            	
              (a)

            	
              if
      to JAG:

            

    

     

    6865 S.W.
18th
Street, Suite B13

    Boca
Raton, FL  33433

    Attention:
Mr. Thomas J. Mazzarisi, CEO

    Fax:  (866)
654-2837

    

    
      	
               
      

            	
              (b)

            	
              if
      to ExchangeCo to:

            

    

     

    6295
Northam Drive, Unit No. 8

    Mississauga,
ON  L4V 1H8

    Attention:
Brian S. Sterling, President

    Fax:  (905)
673-9865

    

    
      	
               
      

            	
              (c)

            	
              if
      to the Trustee to:

            

    

     

    1600 -
130 King Street West

    The
Exchange Tower

    Toronto,
Ontario M5X 1J5 Canada

    Attention:
Sanjay M. Joshi, Partner

    Fax:  (416)
861-0445

    

    Any
notice or other communication given personally shall be deemed to have been
given and received upon delivery thereof, and if given by telecopy shall be
deemed to have been given and received on the date of receipt thereof unless
such day is not a Business Day in which case it shall be deemed to have been
given and received upon the immediately following Business Day.

     

    
      	
              14.4

            	
              Notice
      to Holders

            

    

     

    Any and
all notices to be given and any documents to be sent to any Holders may be given
or sent to the address of such Holder shown on the register of Holders of
Exchangeable Shares in any manner permitted by the Exchangeable Share Provisions
and shall be deemed to be received (if given or sent in such manner) at the time
specified in such Exchangeable Share Provisions, the provisions of which
Exchangeable Share Provisions shall apply mutatis mutandis to notices or
documents as aforesaid sent to such Holders.

     

    
      	
              14.5

            	
              Risk
      of Payments by Post

            

    

     

    Whenever
payments are to be made or documents are to be sent to any Holder by the
Trustee, by ExchangeCo or by JAG or by such Holder to the Trustee or to JAG or
ExchangeCo, the making of such payment or sending of such document sent through
the mail shall be at the risk of ExchangeCo or JAG, in the case of payments made
or documents sent by the Trustee or ExchangeCo or JAG, and the Holder, in the
case of payments made or documents sent by the Holder.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 32 -

     

    
      	
              14.6

            	
              Counterparts

            

    

     

    This
agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which taken together shall constitute one and the same
instrument.

     

    
      	
              14.7

            	
              Jurisdiction

            

    

     

    This
agreement shall be construed and enforced in accordance with the laws of the
Province of Ontario and the federal laws of Canada applicable
therein.

     

    
      	
              14.8

            	
              Attornment

            

    

     

    JAG
agrees that any action or proceeding arising out of or relating to this
agreement may be instituted in the courts of Ontario, waives any objection which
it may have now or hereafter to the venue of any such action or proceeding,
irrevocably submits to the jurisdiction of such courts in any such action or
proceeding, agrees to be bound by any judgment of such courts and agrees not to
seek, and hereby waives, any review of the merits of any such judgment by the
courts of any other jurisdiction and hereby appoints ExchangeCo at its
registered office in the Province of Ontario as JAG's attorney for service of
process.

     

    
      	
              14.9

            	
              Permitted
      Assignment

            

    

     

    JAG may
assign any or all of its rights and obligations under this Agreement to JAG
Holdco, provided that each of JAG and JAG Holdco shall thereafter, jointly and
severally, be liable for the performance by JAG Holdco of the obligations of JAG
pursuant to this Agreement. Any and all of the obligations of JAG may be
performed and satisfied by JAG Holdco, except that nothing in this Section 14.9
will permit any change to the rights, privileges, restrictions and conditions
attaching to the Voting Share or Exchangeable Shares or to the Exchange Right,
Exchange Put Right or Automatic Exchange Rights.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 33 -

     

    IN
WITNESS WHEREOF, the parties hereby have caused this agreement to be duly
executed as of the date first above written.

     

    
      
        
          
            
              	 
      	
                      JAG
      Media Holdings, Inc.

                    
	 
      	 
      
	
                      Per: 
      

                    	/s/
      Thomas J.
      Mazzarisi
	 
      	
                      Name:  Thomas
      J. Mazzarisi

                    
	 
      	
                      Title:  Chairman
      & CEO

                    
	 
      	 
      
	 
      	
                      CardioGenics
      Exchangeco Inc.

                    
	 
      	 
      
	
                      Per: 
      

                    	/s/
      Brian S.
      Sterling
	 
      	
                      Name:  Brian
      S. Sterling

                    
	 
      	
                      Title:  President

                    
	 
      	 
      
	 
      	
                      WeirFoulds
      LLP

                    
	 
      	 
      
	
                      Per: 
      

                    	/s/
      Sanjay M.
      Joshi  
	 
      	
                      Name:  Sanjay
      M. Joshi

                    
	 
      	
                      Title:  Partner

                    

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 34 -

     

    EXHIBIT
A

    

    AMENDED
ARTICLES OF INCORPORATION

    

    OF

    

    CARDIOGENICS
EXCHANGECO INC.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 35 -

     

    SHARE
CAPITAL AND OTHER PROVISIONS

    TO
BE INCLUDED IN THE ARTICLES OF INCORPORATION OF CARDIOGENICS

    EXCHANGECO
INC.

     

    SHARE
CAPITAL

     

    PROVISIONS
ATTACHING TO THE COMMON SHARES

     

    The
common shares ("Common
Shares") in the capital of the Corporation shall have attached thereto
the following rights, privileges, restrictions and conditions:

     

    Dividends

     

    Subject
to the prior rights of the Exchangeable Shares and any other shares ranking
prior to the Common Shares, holders of Common Shares have a right to receive
dividends when declared by the Board of Directors out of property of the
Corporation legally available therefor.

     

    Liquidation

     

    Subject
to the prior rights of the Exchangeable Shares and any other shares ranking
prior to the Common Shares, the holders of Common Shares shall, upon any
liquidation, dissolution or winding-up of the Corporation, whether voluntary or
involuntary, or other distribution of the assets of the Corporation for the
purpose of winding-up its affairs, be entitled to receive the remaining property
and assets of the Corporation.

     

    Voting

     

    The
holders of the Common Shares shall be entitled to receive notice of and to
attend all meetings of shareholders (other than separate meetings of other
classes or series of shares), and shall be entitled to one vote for each Common
Share held.

     

    PROVISIONS
ATTACHING TO THE EXCHANGEABLE SHARES

     

    The
Exchangeable Shares in the capital of the Corporation shall have the following
rights, privileges, restrictions and conditions:

     

    ARTICLE
XV

    INTERPRETATION

     

    
      	
              15.1

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

            

    

     

    "Act" means the Business
Corporations Act (Ontario), as amended, consolidated or re-enacted from time to
time.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 36 -

     

    "Aggregate Equivalent Vote
Amount" means, with respect to any matter, proposition or question on
which holders of JAG Common Stock are entitled to vote, consent or otherwise
act, the product of (i) the number of Exchangeable Shares then issued and
outstanding and held by holders (other than JAG and its Subsidiaries) multiplied
by (ii) the number of votes to which a holder of one share of JAG Common Stock
is entitled with respect to such matter, proposition or question.

     

    "Automatic Redemption Date"
means the date for the automatic redemption by the Corporation of Exchangeable
Shares pursuant to Article 7 of these share provisions, which date shall be the
first to occur of (a) the date, if any, selected pursuant to this clause (a) by
the Board of Directors of the Corporation, such date to be no earlier than the
tenth anniversary of the Effective Date, (b) the date selected by the Board of
Directors of the Corporation (such date to be no earlier than the third
anniversary of the Effective Date of the Arrangement) at a time when less than
10% of the number of Exchangeable Shares issuable on the Effective Date (other
than Exchangeable Shares held by JAG and its Subsidiaries, and 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 issuance or distribution of rights to acquire
Exchangeable Shares or securities exchangeable for or convertible into or
carrying rights to acquire 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 involving or affecting the
Exchangeable Shares), are outstanding, (c) the Business Day prior to the record
date for any meeting or vote of the shareholders of the Corporation to consider
any matter on which the holders of Exchangeable Shares would be entitled to vote
as shareholders of the Corporation, but excluding any meeting or vote as
described in clause (d) below, or (d) the Business Day following the day on
which the holders of Exchangeable Shares fail to take the necessary action at a
meeting or other vote of holders of Exchangeable Shares, if and to the extent
such action is required, to approve or disapprove, as applicable, any change to,
or in the rights of the holders of, Exchangeable Shares, if the approval or
disapproval, as applicable, of such change would be required to maintain the
economic and legal equivalence of the Exchangeable Shares and the JAG Common
Stock.

     

    "Board of Directors" means the
board of directors of the Corporation and any committee thereof acting within
its authority.

     

    "Business Day" means any day
other than a Saturday, a Sunday or a day when banks are not open for business in
Toronto, Ontario.

     

    "CardioGenics" means
CardioGenics Inc., a corporation organized and existing under the
Act.

     

    "Common Shares" means the
common shares in the capital of the Corporation.

     

    "Corporation" means CardioGenics Exchangeco Inc.,
a corporation organized and existing under the Act and includes any
successor corporation.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 37 -

     

    "Current Market Price" means,
in respect of a share of JAG Common Stock on any date, the average of the
closing sale prices per share (computed and rounded to the third decimal point)
of shares of JAG Common Stock during the period of 20 consecutive trading days
ending not more than five trading days before such date on the OTC Bulletin
Board (“OTCBB”), or, if JAG Common Stock is not then traded on the OTCBB, on
such other principal U.S. stock exchange or automated quotation system on which
the JAG Common Stock is then 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 JAG Common Stock during such period does not create a market which
reflects the fair market value of a share of JAG Common Stock, then the Current
Market Price of a share of JAG Common Stock shall be determined by the Board of
Directors based upon the advice of such qualified independent financial advisors
as the Board of Directors may deem to be appropriate, and provided further than
any such selection, opinion or determination by the Board of Directors shall be
conclusive and binding.

     

    "Effective Date" the date
hereof.

     

    "Exchange Put Date" has the
meaning provided in Section 8.2.

     

    "Exchange Put Right" has the
meaning provided in Section 8.1.

     

    "Exchangeable Share
Consideration" means, with respect to each Exchangeable Share, for any
acquisition of or redemption of or distribution of assets of the Corporation in
respect of or purchase pursuant to these share provisions, the Support Agreement
or the Voting and Exchange Trust Agreement:

     

    
      	
               
      

            	
              (a)

            	
              the
      Current Market Price of one share of JAG Common Stock deliverable in
      connection with such action;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      cheque or cheques payable at par at any branch of the bankers of the payor
      in the amount of all declared, payable and unpaid, and all undeclared but
      payable, cash dividends deliverable in connection with such action;
      and

            

    

     

    
      	
               
      

            	
              (c)

            	
              such
      stock or other property constituting any declared and unpaid, and all
      undeclared but payable, non-cash dividends deliverable in connection with
      such action,

            

    

     

    provided
that (i) that part of the consideration which represents (a) above, shall be
fully paid and satisfied by the delivery of one share of JAG Common Stock, such
share to be duly issued as a fully paid and non-assessable share, (ii) that part
of the consideration which represents (c), above, shall be fully paid and
satisfied by delivery of such non-cash items, and (iii) any such consideration
shall be delivered free and clear of any lien, claim, encumbrance, security
interest or adverse claim or interest less any tax required to be deducted and
withheld therefrom and without interest.

     

    "Exchangeable Share Price"
means, for each Exchangeable Share, an amount equal to the aggregate
of:

     

    
      	
               
      

            	
              (a)

            	
              the
      Current Market Price of a share of JAG Common Stock;
  plus

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 38 -

     

    
      	
               
      

            	
              (b)

            	
              an
      additional amount equal to the full amount of all cash dividends declared,
      payable and unpaid, on such Exchangeable Share;
  plus

            

    

     

    
      	
               
      

            	
              (c)

            	
              an
      additional amount equal to all dividends declared and payable on JAG
      Common Stock which have not been declared on Exchangeable Shares in
      accordance herewith; plus

            

    

     

    
      	
               
      

            	
              (d)

            	
              an
      additional amount representing non-cash dividends declared, payable and
      unpaid, on such Exchangeable Share.

            

    

     

    "Exchangeable Shares" means the
Exchangeable Shares of the Corporation having the rights, privileges,
restrictions and conditions set forth herein.

     

    "JAG" means JAG Media Holdings,
Inc., a corporation organized and existing under the laws of the State of Nevada
and includes any successor corporation or any corporation in which the holders
of JAG Common Stock hold securities resulting from the application of Section
2.7 of the Support Agreement;

     

    "JAG Call Notice" has the
meaning provided in Section 6.3.

     

    "JAG Common Stock" means the
shares of common stock of JAG, with a par value of U.S. $0.00001 per share,
having voting rights of one vote per share, and any other securities resulting
from the application of Section 2.7 of the Support Agreement.

     

    "JAG Dividend Declaration Date"
means the date on which the board of directors of JAG declares any dividend on
the JAG Common Stock.

     

    "JAG Holdco" has the meaning
provided in the Voting and Exchange Trust Agreement.

     

    "JAG Special Share" means the
one share of Special Voting Stock of JAG, with a par value of U.S. $0.01, and
having voting rights at meetings of holders of JAG Common Stock equal to the
Aggregate Equivalent Voting Amount.

     

    "Liquidation Amount" has the
meaning provided in Section 5.1.

     

    "Liquidation Call Right" has
the meaning provided in the Articles of Incorporation of the
Corporation.

     

    "Liquidation Call Purchase
Price" has the meaning provided in the Articles of Incorporation of the
Corporation.

     

    "Liquidation Date" has the
meaning provided in Section 5.1.

     

    "Purchase Price" has the
meaning provided in Section 6.3.

     

    "Redemption Call Purchase
Price" has the meaning provided in the Articles of Incorporation of the
Corporation.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 39 -

     

    "Redemption Call Right" has the
meaning provided in the Articles of Incorporation of the
Corporation.

     

    "Redemption Price" has the
meaning provided in Section 7.1.

     

    "Retracted Shares" has the
meaning provided in subsection 6.1 (a).

     

    "Retraction Call Right" has the
meaning provided in subsection 6.1 (c).

     

    "Retraction Date" has the
meaning provided in subsection 6.1 (b).

     

    "Retraction Price" has the
meaning provided in Section 6.1.

     

    "Retraction Request" has the
meaning provided in Section 6.1.

     

    "Subsidiary", in relation to
any person, means any body corporate, partnership, joint venture, association or
other entity of which more than 50% of the total voting power of shares of stock
or units of ownership or beneficial interest entitled to vote in the election of
directors (or members of a comparable governing body) is owned or controlled,
directly or indirectly, by such person.

     

    "Support Agreement" means the
Support Agreement between JAG and the Corporation, made as of the Effective
Date.

     

    "Transfer Agent" means the duly
appointed transfer agent for the time being of the Exchangeable Shares, and, if
there is more than one such transfer agent, then the principal Canadian transfer
agent.

     

    "Trustee" means the Trustee
appointed under the Voting and Exchange Trust Agreement, and any successor
trustee.

     

    "Voting and Exchange Trust
Agreement" means the Voting and Exchange Trust Agreement among the
Corporation, JAG and the Trustee, made as of the Effective Date.

     

    ARTICLE
XVI

    RANKING
OF EXCHANGEABLE SHARES

     

    16.1                        
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.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 40 -

     

    ARTICLE
XVII

    DIVIDENDS

     

    17.1    
                    A
holder of an Exchangeable Share shall be entitled to receive and the Board of
Directors shall, subject to applicable law, on each JAG Dividend Declaration
Date, declare a dividend on each Exchangeable Share (a) in the case of a cash
dividend declared on the JAG Common Stock, in an amount in cash for each
Exchangeable Share equal to the cash dividend declared on each share of JAG
Common Stock, (b) in the case of a stock dividend declared on the JAG Common
Stock to be paid in JAG Common Stock, in such number of Exchangeable Shares for
each Exchangeable Share as is equal to the number of shares of JAG Common Stock
to be paid on each share of JAG Common Stock, (c) in the case of a dividend
declared on the JAG Common Stock in property other than cash or securities of
JAG, in such type and amount of property for each Exchangeable Share as is the
same as the type and amount of property declared as a dividend on each share of
JAG Common Stock or (d) in the case of a dividend declared on the JAG Common
Stock to be paid in securities of JAG other than JAG Common Stock, in such
number of either such securities or economically equivalent securities of the
Corporation, as the Board of Directors determines, for each Exchangeable Share
as is equal to the number of securities of JAG to be paid on each share of JAG
Common Stock. Such dividends (less any tax required to be deducted and withheld
from 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.

     

    17.2      
                  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
subsection 3.1 (a) hereof and the sending of such a cheque to each holder of an
Exchangeable Share (less any tax required to be deducted and withheld from such
dividends paid or credited by the Corporation) shall satisfy the cash dividends
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
subsections 3.1 (b) or (d) hereof and the sending of such a certificate to each
holder of an Exchangeable Share shall satisfy the stock dividend represented
thereby or dividend payable in other securities represented thereby. Such other
type and amount of property in respect of any dividends contemplated by
subsection 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. In all cases, any such dividends
shall be subject to any reduction or adjustment for tax required to be deducted
and withheld from such dividends, and the Corporation shall be entitled to
liquidate some of the property which would otherwise be deliverable in payment
of such dividends to a particular holder of Exchangeable Shares to fund any
statutory withholding obligation. No holder of an Exchangeable Share shall be
entitled to recover by action or other legal process against the Corporation any
dividend which is represented by a cheque that has not been duly presented to
the Corporation's bankers for payment or which otherwise remains unclaimed for a
period of six years from the date on which such dividend was
payable.

     

    17.3      
                  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 JAG Common Stock.

     

    17.4      
                  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 which 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.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    - 41 -

     

    17.5                      Except
as provided in this Article 3, the holders of Exchangeable Shares shall not be
entitled to receive dividends in respect thereof.

     

    ARTICLE
XVIII

    CERTAIN
RESTRICTIONS

     

    18.1                      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 Article 10 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 any such
      other shares ranking junior to the Exchangeable
  Shares;

            

    

     

    
      	
               
      

            	
              (b)

            	
              redeem
      or purchase or make any capital distribution in respect of Common Shares
      or any other shares ranking junior to the Exchangeable Shares with respect
      to the payment of dividends or on any liquidation
      distribution;

            

    

     

    
      	
               
      

            	
              (c)

            	
              redeem
      or purchase any other shares of the Corporation ranking equally with the
      Exchangeable Shares with respect of the payment of dividends or on any
      liquidation distribution; or

            

    

     

    
      	
               
      

            	
              (d)

            	
              amend
      the articles or by-laws of the Corporation, in either case in any manner
      that would affect the rights or privileges of the holders of the
      Exchangeable Shares.

            

    

     

    The
restrictions in subsections 4.1 (a), 4.1 (b) and 4.1 (c) above shall not apply
if all dividends on the outstanding Exchangeable Shares corresponding to
dividends declared with a record date on or following the Effective Date on the
JAG Common Stock shall have been declared on the Exchangeable Shares and paid in
full. Nothing herein shall be interpreted to restrict the Corporation from
issuing additional Common Shares or Exchangeable Shares.

     

    ARTICLE
XIX

    DISTRIBUTION
ON LIQUIDATION

     

    19.1                      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, provided that neither JAG nor JAG
Holdco shall have exercised 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 of such liquidation, dissolution or winding-up (the "Liquidation Date"), before
any distribution of any part of the assets of the Corporation to the holders of
the Common Shares or any other shares ranking junior to the Exchangeable Shares,
an amount equal to the Exchangeable Share Price applicable on the last Business
Day prior to the Liquidation Date (the "Liquidation Amount") in
accordance with Section 5.2.  In connection with payment of the
Liquidation Amount, the Corporation shall be entitled to liquidate some of the
JAG Common Stock which would otherwise be deliverable as Exchangeable Share
Consideration to the particular holder of Exchangeable Shares in order to fund
any statutory withholding tax obligation.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 42 -

     

    19.2                      Within
10 Business Days after the Liquidation Date, and subject to the exercise by JAG
or JAG Holdco of the Liquidation Call Right, the Corporation shall cause to be
delivered 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
applicable law and the by-laws of the Corporation and such additional documents
and instruments as the Transfer Agent 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 in Schedule A hereto or by notice to the holders of
the Exchangeable Shares. Payment of the total Liquidation Amount for such
Exchangeable Shares shall be made by delivery to each holder, at the address of
the holder recorded in the securities register of the Corporation for the
Exchangeable Shares 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 in Schedule A hereto or by notice to the holders of
Exchangeable Shares, on behalf of the Corporation of the Exchangeable Share
Consideration representing the total Liquidation Amount. 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, other than the right to receive their
proportionate part of the total 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 total Liquidation Amount has been paid in the manner
hereinbefore provided. The Corporation shall have the right at any time on or
after the Liquidation Date to deposit or cause to be deposited the Exchangeable
Share Consideration in respect of the Exchangeable Shares represented by
certificates that have not at the Liquidation Date been surrendered by the
holders thereof in a custodial account or for safe keeping, in the case of
non-cash items, with any chartered bank or trust company in Canada. Upon such
deposit being made, the rights of the holders of Exchangeable Shares after such
deposit shall be limited to receiving their proportionate part of the total
Liquidation Amount for such Exchangeable Shares so deposited, against
presentation and surrender of the said certificates held by them, respectively,
in accordance with the foregoing provisions. Upon such payment or deposit of
such Exchangeable Share Consideration, the holders of the Exchangeable Shares
shall thereafter be considered and deemed for all purposes to be the holders of
the JAG Common Stock delivered to them. Notwithstanding the foregoing, until
such payment or deposit of such Exchangeable Share Consideration, the holder
shall be deemed to still be a holder of Exchangeable Shares for purposes of all
voting rights with respect thereto under the Voting and Exchange Trust
Agreement.

     

    19.3                      After
the Corporation has satisfied its obligations to pay the holders of the
Exchangeable Shares the Liquidation Amount per Exchangeable Share, such holders
shall not be entitled to share in any further distribution of the assets of the
Corporation.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 43 -

     

    19.4                      If
JAG or JAG Holdco exercises the Liquidation Call Right, each holder of
Exchangeable Shares shall be obligated to sell the Exchangeable Shares held by
such holder to JAG or JAG Holdco, as the case may be, on the Liquidation Date on
payment to such holder by JAG or JAG Holdco, as the case may be, of the
Exchangeable Share Consideration representing the Liquidation Call Purchase
Price for each Exchangeable Share.

     

    ARTICLE
XX

    RETRACTION
OF EXCHANGEABLE SHARES BY HOLDER

     

    20.1                      A
holder of Exchangeable Shares shall be entitled at any time, subject to
applicable law and the exercise by JAG or JAG Holdco of the Retraction Call
Right (which, if exercised by JAG or JAG Holdco, shall be binding on the holder
of Exchangeable Shares) and otherwise upon compliance with 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 for an amount equal to
the Exchangeable Share Price applicable on the last Business Day prior to the
Retraction Date (the "Retraction Price") which as
set forth in Section 6.4, shall be fully paid and satisfied by the delivery by
or on behalf of the Corporation of the Exchangeable Share Consideration
representing such holder's Retraction Price. In connection with payment of the
Retraction Price, the Corporation shall be entitled to liquidate some of the JAG
Common Stock that would otherwise be deliverable as Exchangeable Share
Consideration to the particular holder of Exchangeable Shares in order to fund
any statutory withholding tax obligation. 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 in
Schedule A hereto or 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 such other
documents and instruments as may be required to effect a transfer of
Exchangeable Shares under applicable law and the by-laws of the Corporation and
such additional documents and instruments as the Transfer Agent may reasonably
require, and together with a duly executed statement (the "Retraction Request") in the
form of Schedule "A" 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;

            

    

     

    
      	
               
      

            	
              (b)

            	
              stating
      the Business Day on which the holder desires to have the Corporation
      redeem the Retracted Shares (the "Retraction Date"),
      provided that the Retraction Date shall be not less than five Business
      Days nor more than 10 Business Days after the date on which the Retraction
      Request is received by the Transfer Agent as agent for the Corporation and
      further provided that, in the event that no such Business Day is specified
      by the holder in the Retraction Request, the Retraction Date shall be
      deemed to be the tenth Business Day after the date on which the Retraction
      Request is received by the Transfer Agent;
and

            

    

     

    
      	
               
      

            	
              (c)

            	
              acknowledging
      the overriding right (the "Retraction Call Right")
      of JAG or JAG Holdco 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
      in accordance with the Retraction Call Right on the terms and conditions
      set out in Section 6.3 below.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 44 -

     

    20.2                      Subject
to the exercise by JAG or JAG Holdco of the Retraction Call Right, upon receipt
by the Transfer Agent in the manner specified in Section 6.1 hereof of a
certificate or certificates representing the number of Exchangeable Shares which
the holder desires to have the Corporation redeem, together with a Retraction
Request, and provided that the Retraction Request is not revoked by the holder
in the manner specified in Section 6.6, the Corporation shall redeem the
Retracted Shares effective at the close of business on the Retraction Date and
shall cause to be delivered to such holder the total Retraction Price with
respect to such shares in accordance with Section 6.4 hereof. If only a part of
the Exchangeable Shares represented by any certificate are redeemed or purchased
by JAG or JAG Holdco 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.

     

    20.3                      Upon
receipt by the Corporation of a Retraction Request, the Corporation shall
immediately notify JAG and JAG Holdco thereof. In order to exercise the
Retraction Call Right, JAG or JAG Holdco must notify the Corporation in writing
of its determination to do so (the "JAG Call Notice") within two
Business Days of such notification. If JAG or JAG Holdco does not so notify the
Corporation within such two Business Days, the Corporation will notify the
holder as soon as possible thereafter that neither JAG nor JAG Holdco will
exercise the Retraction Call Right. If JAG or JAG Holdco delivers the JAG Call
Notice within such two Business Days, and provided that the Retraction Request
is not revoked by the holder in the manner specified in Section 6.6 hereof, the
Retraction Request shall thereupon be considered only to be an offer by the
holder to sell the Retracted Shares to JAG or JAG Holdco, as the case may be, in
accordance with the Retraction Call Right. In such event, the Corporation shall
not redeem the Retracted Shares and JAG or JAG Holdco, as the case may be, shall
purchase from such holder and such holder shall sell to JAG or JAG Holdco, as
the case may be, on the Retraction Date the Retracted Shares for a purchase
price per share (the "Purchase
Price") equal to the Retraction Price, which as set forth in Section 6.4
hereof, shall be fully paid and satisfied by the delivery by or on behalf of JAG
or JAG Holdco, as the case may be, of the Exchangeable Share Consideration
representing such holder's Purchase Price. For the purposes of completing a
purchase pursuant to the Retraction Call Right, JAG or JAG Holdco, as the case
may be, shall deposit with the Transfer Agent, on or before the Retraction Date,
the Exchangeable Share Consideration representing the total Purchase Price.
Provided that such Exchangeable Share Consideration has been so deposited with
the Transfer Agent, 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 JAG or JAG Holdco, as the case may be, does
not deliver a JAG Call Notice within two Business Days or otherwise comply with
these Exchangeable Share provisions in respect thereto, and provided that
Retraction Request is not revoked by the holder in the manner specified in
Section 6.6 hereof, the Corporation shall redeem the Retracted Shares on the
Retraction Date and in the manner otherwise contemplated in this Article
6.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 45 -

     

    20.4                      Subject
to receipt by the Corporation of a Retraction Request, the Corporation, JAG or
JAG Holdco, 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
securities register 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 in Schedule A hereto
or by notice to the holders of Exchangeable Shares, the Exchangeable Share
Consideration representing the total Retraction Price or the total Purchase
Price, as the case may be, and such delivery of such Exchangeable Share
Consideration to the Transfer Agent shall be deemed to be payment of and shall
satisfy and discharge all liability for the total Retraction Price or total
Purchase Price, as the case may be, except as to any cheque included therein
which is not paid on due presentation.

     

    20.5                      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,
other than the right to receive such holder's proportionate part of the total
Retraction Price or total Purchase Price, as the case may be, unless upon
presentation and surrender of certificates in accordance with the foregoing
provisions, payment of the total Retraction Price or the total Purchase Price,
as the case may be, shall not be made, in which case the rights of such holder
shall remain unaffected until the Exchangeable Share Consideration representing
the total Retraction Price or the total 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 Exchangeable Share Consideration representing
the total Retraction Price or the total 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 JAG or JAG
Holdco shall thereafter be considered and deemed for all purposes to be a holder
of the JAG Common Stock delivered to it. Notwithstanding the foregoing, until
such payment of such Exchangeable Share Consideration to the holder, the holder
shall be deemed to still be a holder of Exchangeable Shares for purposes of all
voting rights with respect thereto under the Voting and Exchange Trust
Agreement.

     

    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 liquidity
or solvency requirements or other provisions of applicable law. If the
Corporation believes that on any Retraction Date it would not be permitted by
any of such provisions to redeem the Retracted Shares tendered for redemption on
such date, and provided that neither JAG nor JAG Holdco shall 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 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 liquidity or solvency requirements or
other provisions of applicable law, the Corporation shall redeem 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. Provided that the Retraction
Request is not revoked by the holder in the manner specified in Section 6.6
hereof, the holder of any such Retracted Shares not redeemed by the Corporation
pursuant to Section 6.2 hereof as a result of liquidity or solvency requirements
or applicable law shall be deemed by giving the Retraction Request to require
JAG or JAG Holdco, as the case may be, to purchase such Retracted Shares from
such holder on the Retraction Date or as soon as practicable thereafter on
payment by JAG or JAG Holdco, as the case may be, to such holder of the Purchase
Price for each such Retracted Share, all as more specifically provided in the
Voting and Exchange Trust Agreement, and JAG shall make such
purchase.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 46 -

     

    20.6                      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 JAG or JAG Holdco, as the case may be, shall be deemed to have been
revoked.

     

    ARTICLE
XXI

    REDEMPTION
OF EXCHANGEABLE SHARES BY THE CORPORATION

     

    21.1                      Subject
to applicable law, and if neither JAG or JAG Holdco exercises the Redemption
Call Right (which, if exercised, shall be binding on the holders of Exchangeable
Shares), the Corporation shall on the Automatic Redemption Date redeem the whole
of the then outstanding Exchangeable Shares for an amount equal to the
Exchangeable Share Price applicable on the last Business Day prior to the
Automatic Redemption Date (the "Redemption Price") which, as
set forth in Section 7.3 hereof, shall be fully paid and satisfied by the
delivery by or on behalf of the Corporation of the Exchangeable Share
Consideration representing the total Redemption Price. In connection with
payment of the Exchangeable Share Consideration representing the Redemption
Price, the Corporation shall be entitled to liquidate some of the JAG Common
Stock which would otherwise be deliverable as Exchangeable Share Consideration
to the particular holder of Exchangeable Shares in order to fund any statutory
withholding tax obligation.

     

    21.2                      In
any case of a redemption of Exchangeable Shares under this Article 7, the
Corporation, or the Transfer Agent on behalf of the Corporation, shall, at least
45 days before an Automatic Redemption Date or before a possible Automatic
Redemption Date which may result from a failure of the holders of Exchangeable
Shares to take necessary action as described in clause (d) of the definition of
Automatic Redemption Date send or cause to be sent to each holder of
Exchangeable Shares a notice in writing of the redemption or possible redemption
by the Corporation or the purchase by JAG or JAG Holdco under the Redemption
Call Right, as the case may be, of the Exchangeable Shares held by such holder.
Such notice shall set out the Redemption Price or the Redemption Call Purchase
Price, as the case may be, the Automatic Redemption Date and, if applicable,
particulars of the Redemption Call Right. In the case of any notice given in
connection with a possible Automatic Redemption Date, such notice will be given
contingently and will be withdrawn if the contingency does not
occur.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 47 -

     

    21.3                      On
or after the Automatic Redemption Date, and subject to the exercise by JAG or
JAG Holdco of the Redemption Call Right, the Corporation shall cause to be
delivered to the holders of the Exchangeable Shares to be redeemed the
Exchangeable Share Consideration representing the Redemption Price for each such
Exchangeable Share upon presentation and surrender 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
applicable law and the by-laws of the Corporation and such additional documents
and instruments as the Transfer Agent may reasonably require. Payment of the
total Redemption Price for such Exchangeable Shares shall be made by delivery to
each holder, at the address of the holder recorded in the securities register or
at any office of the Transfer Agent as may be specified by the Corporation in
such notice, on behalf of the Corporation, of the Exchangeable Share
Consideration representing the total Redemption Price. On and after the
Automatic 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, other
than the right to receive their proportionate part of the Exchangeable Share
Consideration representing the total Redemption Price, unless payment of the
Exchangeable Share Consideration representing the total 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 Exchangeable Share
Consideration representing the total 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 deposit or cause to be deposited the Exchangeable Share
Consideration with respect to the Exchangeable Shares 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, in a custodial account or for safe keeping, in
the case of non-cash items, with any chartered bank or trust company in Canada
named in such notice. Upon the later of such deposit being made and the
Automatic 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 Automatic Redemption Date, as the case may be,
shall be limited to receiving their proportionate part of the Exchangeable Share
Consideration representing the total Redemption Price for such Exchangeable
Shares so deposited, against presentation and surrender of the said certificates
held by them, respectively, in accordance with the foregoing provisions. Upon
such payment or deposit of such Exchangeable Share Consideration, the holders of
the Exchangeable Shares shall thereafter be considered and deemed for all
purposes to be holders of the JAG Common Stock delivered to them.
Notwithstanding the foregoing, until such payment or deposit of such
Exchangeable Share Consideration is made, the holder shall be deemed to still be
a holder of Exchangeable Shares for purposes of all voting rights with respect
thereto under the Voting and Exchange Trust Agreement.

     

    21.4                      If
JAG or JAG Holdco exercises the Redemption Call Right, each holder of
Exchangeable Shares shall be obligated to sell all the Exchangeable Shares held
by such holder to JAG or JAG Holdco, as the case may be, on the Automatic
Redemption Date against payment to such holder by JAG of the Exchangeable Share
Consideration representing the Redemption Call Purchase Price for each such
share.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 48 -

     

    ARTICLE
XXII

    EXCHANGE
PUT RIGHT

     

    22.1                      Upon
and subject to the terms and conditions contained in these share provisions and
the Voting and Exchange Trust Agreement:

     

    
      	
               
      

            	
              (a)

            	
              a
      holder of Exchangeable Shares shall have the right (the "Exchange Put Right") at
      any time to require JAG to purchase all or any part of the Exchangeable
      Shares of the holder, provided that, upon the exercise of such right, JAG
      may, at its option, cause JAG Holdco to purchase such shares;
      and

            

    

     

    
      	
               
      

            	
              (b)

            	
              upon
      the exercise by the holder of the Exchange Put Right the holder shall be
      required to sell to JAG or JAG Holdco, as the case may be, and JAG shall
      be required to purchase, or cause JAG Holdco to purchase, from the holder,
      that number of Exchangeable Shares in respect of which the Exchange Put
      Right is exercised, in consideration of the payment by JAG or JAG Holdco,
      as the case may be, of the Exchangeable Share Price applicable thereto
      (which shall be the Exchangeable Share Price applicable on the last
      Business Day prior to receipt of notice required under Section 8.2 hereof)
      and delivery by or on behalf of JAG or JAG Holdco, as the case may be, of
      the Exchangeable Share Consideration representing the total applicable
      Exchangeable Share Price. In connection with payment of the Exchangeable
      Share Consideration, the Corporation shall be entitled to liquidate some
      of the JAG Common Stock which would otherwise be deliverable to the
      particular holder of Exchangeable Shares in order to fund any statutory
      withholding tax obligation.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 49 -

     

    22.2                      The
Exchange Put Right provided in Section 8.1 hereof and in Article 5 of the Voting
and Exchange Trust Agreement may be exercised at any time by notice in writing
given by the holder to and received by the Trustee (the date of such receipt,
the "Exchange Put Date") and accompanied by presentation and surrender of the
certificates representing such Exchangeable Shares, together with such documents
and instruments as may be required to effect a transfer of Exchangeable Shares
under the Act and the by-laws of the Corporation and such additional documents
and instruments as the Trustee may reasonably require, at the principal transfer
offices in Toronto, Ontario of the Trustee, or at such other office or offices
of the Trustee or of other persons designated by the Trustee for that purpose as
may from time to time be maintained by the Trustee for that purpose. Such notice
may be (i) in the form of the panel, if any, on the certificates representing
Exchangeable Shares, (ii) in the form of the notice and election contained in
any letter of transmittal distributed or made available by the Corporation for
that purpose, or (iii) in other form satisfactory to the Trustee (or such other
persons aforesaid), shall stipulate the number of Exchangeable Shares in respect
of which the right is exercised (which may not exceed the number of shares
represented by certificates surrendered to the Trustee), shall be irrevocable
unless the exchange is not completed in accordance herewith and with the Voting
and Exchange Trust Agreement and shall constitute the holder's authorization to
the Trustee (and such other persons aforesaid) to effect the exchange on behalf
of the holder.

     

    22.3                      The
completion of the sale and purchase referred to in Section 8.1 hereof shall be
required to occur, and JAG shall be required to take all actions on its part
necessary to permit it to occur, not later than the close of business on the
third Business Day following the Exchange Put Date.

     

    22.4                      The
surrender by the holder of Exchangeable Shares under Section 8.2 hereof shall
constitute the representation, warranty and covenant of the holder that the
Exchangeable Shares so surrendered are sold free and clear of any lien,
encumbrance, security interest or adverse claim or interest.

     

    22.5                      If
a part only of the Exchangeable Shares represented by any certificate are to be
sold and purchased pursuant to the exercise of the Exchange Put Right, a new
certificate for the balance of such Exchangeable Shares shall be issued to the
holder at the expense of the Corporation.

     

    22.6                      Upon
receipt by the Trustee of the notice, certificates and other documents or
instruments required by Section 8.2, the Trustee shall deliver or cause to be
delivered, on behalf of JAG or JAG Holdco, as the case may be, and subject to
receipt by the Trustee from JAG or JAG Holdco, as the case may be, of the
applicable Exchangeable Share Consideration, to the relevant holder at the
address of the holder specified in the notice or by holding for pick-up by the
holder at any office of the Trustee (or other persons aforesaid) maintained for
that purpose, the Exchangeable Share Consideration representing the total
applicable Exchangeable Share Price, within the time stipulated in Section 8.3
hereof. Delivery by JAG or JAG Holdco, as the case may be, to the Trustee of
such Exchangeable Share Consideration shall be deemed to be payment of and shall
satisfy and discharge all liability for the total applicable Exchangeable Share
Price, except as to any cheque included therein which is not paid on due
presentation.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 50
-

     

    22.7                      On
and after the close of business on the Exchange Put Date, the holder of the
Exchangeable Shares in respect of which the Exchange Put Right is exercised
shall not be entitled to exercise any of the rights of a holder in respect
thereof, other than the right to receive the total applicable Exchangeable Share
Price, unless upon presentation and surrender of certificates in accordance with
the foregoing provisions, payment of the Exchangeable Share Consideration shall
not be made, in which case the rights of such holder shall remain unaffected
until such payment has been made. On and after the close of business on the
Exchange Put Date provided that presentation and surrender of certificates and
payment of the Exchangeable Share Consideration has been made in accordance with
the foregoing provisions, the holder of the Exchangeable Shares so purchased by
JAG or JAG Holdco, as the case may be, shall thereafter be considered and deemed
for all purposes to be a holder of the JAG Common Stock delivered to it.
Notwithstanding the foregoing, until payment of the Exchangeable Share
Consideration to the holder, the holder shall be deemed to still be a holder of
Exchangeable Shares for purposes of all voting rights with respect thereto under
the Voting and Exchange Trust Agreement.

     

    ARTICLE
XXIII

    VOTING
RIGHTS

     

    23.1                      Except
as required by applicable law and the provisions 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.

     

    ARTICLE
XXIV

    AMENDMENT
AND APPROVAL

     

    24.1                      The
rights, privileges, restrictions and conditions attaching to the Exchangeable
Shares may be added to, changed or removed but, except as hereinafter provided,
only with the approval of the holders of the Exchangeable Shares given as
hereinafter specified.

     

    24.2                      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 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 be evidenced by resolution passed by not
less than 66 2/3% of the votes cast on such resolution by persons represented in
person or by proxy at a meeting of holders of Exchangeable Shares (excluding
Exchangeable Shares beneficially owned by JAG or its Subsidiaries) duly called
and held at which the holders of at least 20% of the outstanding Exchangeable
Shares at that time are present or represented by proxy. If at any such meeting
the holders of at least 20% 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 10 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 66 2/3% of the votes cast on
such resolution by persons represented in person or by proxy at such meeting
(excluding Exchangeable Shares beneficially owned by JAG or its Subsidiaries)
shall constitute the approval or consent of the holders of the Exchangeable
Shares. For the purposes of this Section, any spoiled votes, illegible votes,
defective votes and abstinences shall be deemed to be votes not
cast.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 51
-

     

    ARTICLE
XXV

    RECIPROCAL
CHANGES, ETC. IN RESPECT OF JAG COMMON STOCK

     

    
      	25.1	
              (a) 

            	
              Each
      holder of an Exchangeable Share acknowledges that the Support Agreement
      provides, in part, that JAG will
not:

            

    

     

    
      	
               
      

            	
              (i)

            	
              issue
      or distribute shares of JAG Common Stock (or securities exchangeable for
      or convertible into or carrying rights to acquire shares of JAG Common
      Stock) to the holders of all or substantially all of the then outstanding
      shares of JAG Common Stock by way of stock dividend or other distribution;
      or

            

    

     

    
      	
               
      

            	
              (ii)

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

            

    

     

    
      	
               
      

            	
              (iii)

            	
              issue
      or distribute to the holders of all or substantially all of the then
      outstanding shares of JAG Common Stock (A) shares or securities of JAG of
      any class other than JAG Common Stock (other than shares convertible into
      or exchangeable for or carrying rights to acquire shares of JAG Common
      Stock), (B) rights, options or warrants other than those referred to in
      subsection 11.1 (a) (ii) above, (C) evidences of indebtedness of JAG or
      (D) assets of JAG;

            

    

     

    unless

     

    
      	
               
      

            	
              (iv)

            	
              one
      or both of JAG and the Corporation is permitted under applicable law to
      issue or distribute the economic equivalent on a per share basis of such
      rights, options, warrants, securities, shares, evidences of indebtedness
      or other assets to the holders of the Exchangeable Shares;
    and

            

    

     

    
      	
               
      

            	
              (v)

            	
              one
      or both of JAG and the Corporation shall issue or distribute the economic
      equivalent on a per share basis of such rights, options, warrants,
      securities, shares, evidences of indebtedness or other assets
      simultaneously to the holders of the Exchangeable
  Shares.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Each
      holder of an Exchangeable Share acknowledges that the Support Agreement
      further provides, in part, that JAG will
not:

            

    

     

    
      	
               
      

            	
              (i)

            	
              subdivide,
      redivide or change the then outstanding shares of JAG Common Stock into a
      greater number of shares of JAG Common Stock;
or

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 52 -

     

    
      	
               
      

            	
              (ii)

            	
              reduce,
      combine or consolidate or change the then outstanding shares of JAG Common
      Stock into a lesser number of shares of JAG Common Stock;
    or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              reclassify
      or otherwise change the shares of JAG Common Stock or effect an
      amalgamation, merger, reorganization or other transaction involving or
      affecting the shares of JAG Common
Stock;

            

    

     

    unless

     

    
      	
               
      

            	
              (iv)

            	
              the
      Corporation is permitted under applicable law to simultaneously make the
      same or an economically equivalent change to, or in the rights
      of  the holders of, the Exchangeable Shares;
  and

            

    

     

    
      	
               
      

            	
              (v)

            	
              the
      same or an economically equivalent change is simultaneously made to, or in
      the rights of the holders of, the Exchangeable
  Shares.

            

    

     

    The
Support Agreement further provides, in part, that, with the exception of certain
ministerial amendments, 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 Article 10 of these share provisions.

     

    ARTICLE
XXVI

    ACTIONS
BY THE CORPORATION UNDER SUPPORT AGREEMENT

     

    26.1                      The
Corporation will take all such actions and do all such things as shall be necessary
or advisable to perform and comply with and to ensure performance and compliance
by JAG with all provisions of the Support Agreement, the Voting Trust and
Exchange Agreement and JAG's Certificate of Incorporation applicable to the
Corporation and JAG, respectively, in accordance with the terms thereof
including, without limitation, taking all such actions and doing all such things
as shall be necessary or advisable to enforce to the fullest extent possible for
the direct benefit of the Corporation all rights and benefits in favour of the
Corporation under or pursuant thereto.

     

    26.2                      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, the Voting Trust and Exchange Agreement or JAG's Certificate
of Incorporation without the approval of the holders of the Exchangeable Shares
given in accordance with Section 10.2 hereof other than such amendments, waivers
and/or forgiveness as may be necessary or advisable for the purpose
of:

     

    
      	
               
      

            	
              (a)

            	
              adding
      to the covenants of the other party or parties to such agreement for the
      protection of the Corporation or the holders of Exchangeable Shares;
      or

            

    

     

    
      	
               
      

            	
              (b)

            	
              making
      such provisions or modifications not inconsistent with such agreement or
      certificate as may be necessary or desirable with respect to matters or
      questions arising thereunder which, in the opinion of the Board of
      Directors, it may be expedient to make, provided that the Board of
      Directors shall be of the 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

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 53
-

     

    
      	
               
      

            	
              (c)

            	
              making
      such changes in or corrections to such agreement or certificate 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
      that the Board of Directors shall be of the opinion, after consultation
      with counsel, that such changes or corrections will not be prejudicial to
      the interests of the holders of the Exchangeable
  Shares.

            

    

     

    ARTICLE
XXVII

    LEGEND

     

    27.1                      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 provisions of the Articles of the
Corporation relating to the Liquidation Call Right, the Retraction Call Right
and the Redemption Call Right, and the Voting and Exchange Trust Agreement
(including the provisions with respect to the voting rights and exchange
provisions thereunder).

     

    ARTICLE
XXVIII

    MISCELLANEOUS

     

    28.1                      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 mail (postage prepaid) or by telecopy or by delivery to
the registered office of the Corporation and addressed to the attention of the
President. 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.

     

    28.2                      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, redemption or exchange of Exchangeable Shares shall be made by
registered mail (postage prepaid) or by delivery to such office of the Transfer
Agent as may be specified by the Corporation, addressed to the attention of the
President 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 Transfer Agent, and the method of any such
presentation and surrender of certificates shall be at the sole risk of the
holder.

     

    28.3                      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 mail (postage prepaid) or by delivery to the address
of the holder recorded in the securities register of the Corporation or, in the
event of the address of any such holder not being so recorded, then at the last
address of such holder known to the Corporation. Any such notice, request or
other communication, if given by mail, shall be deemed to have been given and
received on the fifth 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 or intended to be
taken by the Corporation.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 54 -

     

    28.4                      For
greater certainty, the Corporation shall not be required for any purpose under
these share provisions to recognize or take account of persons who are not so
recorded in such securities register.

     

    28.5                      All
Exchangeable Shares acquired by the Corporation upon the redemption or
retraction thereof shall be cancelled.

     

    28.6                      For
greater certainty, any payments to the holders of Exchangeable Shares shall be
net of applicable taxes, if any, and the payor shall not be obliged to gross up
or increase the amount of such payment which would otherwise be made to take
into account such taxes. Any such taxes which have been withheld or deducted by
the payor thereof shall be remitted to the applicable tax authority within the
time required for such remittance.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
"A"

    RETRACTION
REQUEST

     

    To:                        CardioGenics
ExchangeCo Inc. (the "Corporation")

     

    And
To:                JAG
Media Holdings, Inc. ("JAG")

     

    And
To:                CardioGenics
CallCo Inc. ("JAG
Holdco")

     

    This
request is given pursuant to Article 6 of the provisions (the "Share Provisions") attaching
to the Exchangeable Shares of the Corporation and all capitalized words and
expressions used in this request which are defined in the Share Provisions have
the meaning attributed to such words and expressions in such Share
Provisions.

     

    The
undersigned hereby notifies the Corporation that, subject to the Retraction Call
Right referred to below, the undersigned requests the Corporation to redeem in
accordance with Article 6 of the Share Provisions:

     

    
      	
               
      

            	
              [__]:

            	
              all
      share(s) represented by the accompanying certificate(s);
  or

            

    

     

    
      	
               
      

            	
              [__]:

            	
              __________
      share(s) only.

            

    

     

    The
undersigned hereby notifies the Corporation that the Retraction Date shall be
_____________________.

     

    
      	
              NOTE:

            	
              The
      Retraction Date must be a Business Day and must not be less than five
      Business Days nor more than 10 Business Days after the date upon which
      this notice and the accompanying shares are received at any office of the
      Transfer Agent as may be specified in this Retraction Request or as may be
      specified by the Corporation by notice to the holders of the Exchangeable
      Shares. In the event that no such Business Day is correctly specified
      above, the Retraction Date shall be deemed to be the tenth Business Day
      after the date on which this request is received by the
      Corporation.

            

    

     

    The
undersigned acknowledges the Retraction Call Right of JAG and JAG Holdco (as
defined in the Share Provisions) to purchase all but not less than all the
Retracted Shares from the undersigned and that this request shall be deemed to
be a revocable offer by the undersigned to sell the Retracted Shares to JAG or
JAG Holdco, 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. If neither JAG or JAG
Holdco, as the case may be, determines to exercise the Retraction Call Right,
the Corporation will notify the undersigned of such fact as soon as possible.
This retraction request, and offer to sell the Retracted Shares to JAG or JAG
Holdco, as the case may be, may be revoked and withdrawn by the undersigned by
notice in writing given to the Corporation at any time before the close of
business on the Business Date immediately preceding the Retraction
Date.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 2
-

     

    The
undersigned acknowledges that if, as a result of liquidity or solvency
provisions of applicable law, the Corporation is unable to redeem all Retracted
Shares, the undersigned will be deemed to have exercised the Exchange Right (as
defined in the Voting and Exchange Trust Agreement) so as to require JAG to
purchase, or cause JAG Holdco to purchase, the unredeemed Retracted
Shares.

     

    The
undersigned hereby represents and warrants to the Corporation and JAG that the
undersigned has good title to, and owns, the share(s) represented by the
accompanying certificate free and clear of all liens, claims, encumbrances,
security interests and adverse claims or interests.

     

    
      
        
          
            
              
                	 
      	 
      	 
      	 
      	 
      
	
                        (Date)

                      	 
      	
                        (Signature
      of Shareholder)

                      	 
      	
                        (Guarantee
      of
Signature)

                      

              

            

          

        

      

    

    

    
      	
               
      

            	
              [__]

            	
              Please
      check box if the legal or beneficial owner of the Retracted Shares is a
      non-resident of Canada.

            

    

     

    
      	
               
      

            	
              [__]

            	
              Please
      check box if the securities and any cheque(s) or other non-cash assets
      resulting from the retraction of the Retracted Shares are to be held for
      pick-up by the shareholder at the principal transfer offices of Equity
      Transfer & Trust Company (the "Transfer Agent") in Toronto, Ontario,
      failing which the securities and any cheque(s) or other non-cash assets
      will be delivered to the shareholder in accordance with the share
      provisions.

            

    

     

    
      	
              NOTE:

            	
              This
      panel must be completed and the accompanying share certificate(s),
      together with such additional documents as the Transfer Agent may require,
      must be deposited with the Transfer Agent at its principal transfer
      offices in Toronto, Ontario. The securities and any cheque(s) or other
      non-cash assets resulting from the retraction or purchase of the Retracted
      Shares will be issued and registered in, and made payable to, or
      transferred into, respectively, the name of the shareholder as it appears
      on the register of the Corporation and the securities, cheque(s) and other
      non-cash assets resulting from such retraction or purchase will be
      delivered to the shareholder in accordance with the Share
      Provisions.

            

    

     

    
      
        
          
            
              
                
                  
                    	 
      	 
      	 
      
	
                            Name
      of Person in Whose Name Securities

                          	 
      	
                            Date

                          
	
                            or
      Cheque(s) or Other Non-cash Assets Are

                          	 
      	 
      
	
                            To
      Be Registered, Issued or Delivered

                          	 
      	 
      
	
                            (please
      print)

                          	 
      	 
      
	 
      	 
      	 
      
	
                            Street
      Address or P.O. Box

                          	 
      	
                            Signature
      of Shareholder

                          
	 
      	 
      	 
      
	
                            City,
      Province

                          	 
      	
                            Signature
      Guaranteed
by

                          

                  

                

              

            

          

        

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 3
-

     

    
      	
              NOTE:

            	
              If
      this retraction request is for less than all of the share(s) represented
      by the accompanying certificate, a certificate representing the remaining
      shares of the Corporation will be issued and registered in the name of the
      shareholder as it appears on the register of the Corporation or its lawful
      transferee.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 4
-

     

    EXHIBIT
B

    

    RIGHTS,
PRIVILEGES, RESTRICTIONS AND CONDITIONS

    

    WITH
RESPECT TO

    

    JAG
SPECIAL VOTING STOCK

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 5
-

     

    The
designation of the Series 1 Preferred Stock including the powers, preferences,
rights, qualifications, limitations and restrictions are as
follows:

    

    1. INITIAL SERIES OF PREFERRED STOCK.
The Corporation’s initial series of preferred stock shall be designated
as “Series 1 Preferred
Stock” and the initial number of shares constituting such series shall
be one (1).

    

    2. DIVIDENDS. Neither the
holder nor, if different, the owner of the Series 1 Preferred Stock shall be
entitled to receive dividends in its capacity as holder or owner
thereof.

    

    3. VOTING RIGHTS. Subject to
paragraph 7 hereof, the holder of record of the Series 1 Preferred Stock
shall be entitled to all of the voting rights, including the right to vote in
person or by proxy, of the Series 1 Preferred Stock on any matters, questions,
proposals or propositions whatsoever that may properly come before the
shareholders of the Corporation at a meeting of the shareholders or in
connection with a consent of the shareholders.

    

    4. LIQUIDATION
PREFERENCE. Upon any voluntary or involuntary liquidation,
dissolution or winding-up of the Corporation, the holder of the Series 1
Preferred Stock shall be entitled to receive out of the assets of the
Corporation available for distribution to the shareholders, an amount equal to
$0.01 before any distribution is made on the common stock of the Corporation or
any other stock ranking junior to the Series 1 Preferred Stock as to
distribution of assets upon liquidation, dissolution or winding-up.

    

    5. RANKING. The Series 1
Preferred Stock shall, with respect to rights on liquidation, winding up and
dissolution, rank (i) senior to all classes of common stock of the
Corporation and (ii) junior to any other class or series of capital stock
of the Corporation.

    

    6. REDEMPTION. The Series 1
Preferred Stock shall not be subject to redemption, except that at such time as
no exchangeable shares (“Exchangeable
Shares”) of CardioGenics Exchangeco Inc. (other than Exchangeable Shares
owned by the Corporation and its affiliates) shall be outstanding, and no shares
of stock, debt, options or other agreements which could give rise to the
issuance of any Exchangeable Shares to any person (other than the Corporation
and its affiliates) shall exist, the Series 1 Preferred Stock shall
automatically be redeemed and canceled, for an amount equal to $0.01 per share
due and payable upon such redemption. Upon any such redemption or other purchase
or acquisition of the Series 1 Preferred Stock by the Corporation, the Series 1
Preferred Stock shall be deemed retired and may not be reissued.

     

    7. OTHER
PROVISIONS. Pursuant to the terms of the certain Voting and Exchange
Trust Agreement dated July 6, 2009 by and among the Corporation, CardioGenics
Exchangeco Inc. and WeirFoulds
LLP,
as such agreement may be amended, modified or supplemented from time to time
(the “Trust
Agreement”):

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    - 6
-

     

    (a)
during the term of the Trust Agreement, the Corporation may not, without the
consent of the holders of the Exchangeable Shares (as defined in the Trust
Agreement), issue any shares of its Series I Preferred Stock in addition to the
one (1) share of Series 1 Preferred Stock issued to the trustee pursuant to the
Trust Agreement;

     

    (b) the
Series 1 Preferred Stock entitles the holder of record to a number of votes at
meetings of holders of common shares of the Corporation equal to the number of
Exchangeable Shares outstanding from time to time (other than the Exchangeable
Shares held by the Corporation and its affiliates);

     

    (c) the
Trustee (as defined in the Trust Agreement) shall exercise the votes held by the
Series 1 Preferred Stock pursuant to and in accordance with the Trust
Agreement;

     

    (d) the
voting rights attached to the Series 1 Preferred Stock shall terminate pursuant
to and in accordance with the Trust Agreement; and

     

    (e) the
powers, designations, preferences and relative, participating, optional and
other special rights, and the qualifications, limitations and restrictions of
such Series 1 Preferred Stock shall be otherwise provided in the Trust
Agreement.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]