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<SEC-DOCUMENT>0000718940-05-000051.txt : 20051213
<SEC-HEADER>0000718940-05-000051.hdr.sgml : 20051213
<ACCEPTANCE-DATETIME>20051213160728
ACCESSION NUMBER:		0000718940-05-000051
CONFORMED SUBMISSION TYPE:	6-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20051213
FILED AS OF DATE:		20051213
DATE AS OF CHANGE:		20051213

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BCE INC
		CENTRAL INDEX KEY:			0000718940
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				99999999
		STATE OF INCORPORATION:			A8
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		6-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08481
		FILM NUMBER:		051261171

	BUSINESS ADDRESS:	
		STREET 1:		1000 DE LA GAUCHETIERE OUEST
		STREET 2:		BUREAU 4100 MONTREAL
		CITY:			QUEBEC CANADA
		STATE:			A8
		ZIP:			H3B 4Y7
		BUSINESS PHONE:		5143977000

	MAIL ADDRESS:	
		STREET 1:		1000 DE LA GAUCHETIERE OUEST
		STREET 2:		BUREAU 4100 MONTREAL
		CITY:			QUEBEC CANADA
		STATE:			A8
		ZIP:			H3B 4Y7

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	BELL CANADA ENTERPRISES INC
		DATE OF NAME CHANGE:	19880111
</SEC-HEADER>
<DOCUMENT>
<TYPE>6-K
<SEQUENCE>1
<FILENAME>bceform6k.htm
<DESCRIPTION>MATERIAL CHANGE REPORT RE: BELL GLOBEMEDIA
<TEXT>
<HTML>
<HEAD>
<TITLE>AutoCoded Document</TITLE>
</HEAD>
<BODY>
<div align="right">
  <HR style="MARGIN-TOP: -2px" align=center width="100%" color=#000000 noShade
SIZE=4>
  <HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=1>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p align="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B><font size="4">SECURITIES
    AND EXCHANGE COMMISSION</font><br>
    WASHINGTON, D.C. 20549</B><br>
    </FONT></p>
  <P ALIGN="center"><FONT size="4" FACE="Arial, Helvetica, sans-serif"><B>FORM
    6-K</B></FONT></P>
  <p>&nbsp;</p>
  <p>&nbsp; </p>
  <P ALIGN="center"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><B>REPORT
    OF FOREIGN PRIVATE ISSUER </B></FONT></P>
  <P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">Pursuant
    to Rule 13a-16 or 15d-16 under<br>
    the Securities Exchange Act of 1934</font></P>
  <P ALIGN="center">&nbsp;</P>
  <table width="94%" border="0">
    <tr>
      <td width="53%"><font size="2" face="Arial, Helvetica, sans-serif">For the
        month of: <b>December 2005</b></font></td>
      <td width="47%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">Commission
          File Number: <b>1-8481</b></font></div></td>
    </tr>
  </table>
  <P ALIGN="center">&nbsp; </P>
  <P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>BCE
    Inc.<br>
    </B><I>(Translation of Registrant&#146;s name into English)</I></FONT></P>
  <font size="2" face="Arial, Helvetica, sans-serif">
  <!-- MARKER FORMAT-SHEET="Para Flush" -->
  </font>
  <P ALIGN="center"><FONT SIZE="2" face="Arial, Helvetica, sans-serif"><B>1000,
    rue de La Gaucheti&egrave;re Ouest, Bureau 3700, Montr&eacute;al, Qu&eacute;bec
    H3B 4Y7, (514) 870-8777<br>
    </B><I>(Address of principal executive offices)</I></FONT></P>
  <P ALIGN="LEFT">&nbsp;</P>
  <blockquote>
    <p align="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"> Indicate
      by check mark whether the Registrant files or will file annual reports under
      cover of Form 20-F or Form 40-F.</FONT> </P>
  </blockquote>
  <table width="80%" border="0" cellpadding="0" cellspacing="0">
    <tr>
      <td width="10%" align="right">&nbsp;</td>
      <td width="32%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">Form
        20-F</font></td>
      <td width="8%"><font size="2" face="Arial, Helvetica, sans-serif"><br>
        </font> <hr align="left" width=100% size=1 noshade color=BLACK> </td>
      <td width="32%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">Form
        40-F</font></td>
      <td width="9%" valign="bottom"><div align="center"><font size="2" face="Arial, Helvetica, sans-serif">X
          </font></div>
        <HR align="left" WIDTH=100% SIZE=1 NOSHADE COLOR=BLACK></td>
      <td width="9%" valign="bottom"> <div align="center"></div></td>
    </tr>
  </table>
  <p>&nbsp;</p>
  <blockquote>
    <p align="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif">Indicate
      by check mark whether the Registrant by furnishing the information contained
      in this Form is also thereby furnishing the information to the Commission
      pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.<br>
      </FONT></p>
  </blockquote>
  <font size="2" face="Arial, Helvetica, sans-serif"> </font>
  <table width="85%" border="0" cellpadding="0" cellspacing="0">
    <tr>
      <td width="20%" align="right">&nbsp;</td>
      <td width="18%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">Yes</font></td>
      <td width="8%"><font size="2" face="Arial, Helvetica, sans-serif"><br>
        </font> <hr width=100% size=1 color=BLACK noshade> </td>
      <td width="27%" align="right"><font size="2" face="Arial, Helvetica, sans-serif">No</font></td>
      <td width="9%"> <div align="center"><font size="2" face="Arial, Helvetica, sans-serif">X
          </font></div>
        <HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></td>
      <td width="14%"> <div align="center"></div></td>
    </tr>
  </table>
  <P ALIGN="LEFT">&nbsp;</P>
  <table width="96%" border="0" cellpadding="0" cellspacing="0">
    <tr>
      <td width="75%"> <blockquote>
          <p><font size="2" face="Arial, Helvetica, sans-serif">If "Yes" is marked,
            indicate below the file number assigned to the Registrant in connection
            with Rule 12g3-2(b): 82-_____.</font></p>
        </blockquote></td>
    </tr>
  </table>
  <P ALIGN="LEFT">&nbsp;</P>
  <blockquote>
    <p align="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif">Notwithstanding
      any reference to BCE&#146;s Web site on the World Wide Web in the documents
      attached hereto, the information contained in BCE&#146;s site or any other
      site on the World Wide Web referred to in BCE&#146;s site is not a part
      of this Form 6-K and, therefore, is not filed with the Securities and Exchange
      Commission.</FONT> </p>
  </blockquote>
  <p>&nbsp;</p>
  <HR style="MARGIN-TOP: -2px" align=center width="100%" color=#000000 noShade
SIZE=1>
  <HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
  <p>&nbsp;</p>
  <div align="center"><FONT SIZE="2"><B><font face="Arial, Helvetica, sans-serif">FORM
    51-102F3</font></B><font face="Arial, Helvetica, sans-serif"> </font></FONT><font face="Arial, Helvetica, sans-serif"><font size="2">
    </font></font></div>
  <P ALIGN="CENTER"><font size="2" face="Arial, Helvetica, sans-serif"><B>MATERIAL
    CHANGE REPORT UNDER<br>
    NATIONAL INSTRUMENT 51-102</B></font></P>
  <P ALIGN="LEFT">&nbsp;</P>
  <table width="99%" border="0">
    <tr>
      <td width="10%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>1.</b></font></font></td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>
        <u>Name and Address of Company </u></b></font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
          name of the company is BCE Inc. (&#147;BCE&#148;), the head office of
          which is located at 1000, rue de La Gaucheti&egrave;re Ouest, Bureau
          3700, Montr&eacute;al, Qu&eacute;bec, H3B 4Y7.</font> </div></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>2.
        </b></font></font></td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b><u>Date
        of Material Change </u></b></font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2">December
        2, 2005. </font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>3.
        </b></font></font></td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b><u>News
        Release </u></b></font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">A
          news release with respect to the material change referred to in this
          report was issued on December 2, 2005 and disseminated on newswires
          in Canada and the United States and posted on the BCE website at www.bce.ca.</font>
        </div></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>4.
        </b></font></font></td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b><u>Summary
        of Material Change </u></b></font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">On
          December 2, 2005, BCE and The Woodbridge Company Limited (&#147;Woodbridge&#148;)
          announced a recapitalization and new ownership structure for Bell Globemedia
          Inc. (&#147;Bell Globemedia&#148;). The recapitalization, which is expected
          to be completed in January 2006, involves additional borrowing by Bell
          Globemedia and a return of capital of $607 million to BCE and Woodbridge.
          The new ownership structure, which is expected to take place in the
          third quarter of 2006 assuming regulatory approvals have been obtained,
          involves the Torstar Corporation (&#147;Torstar&#148;) and Teachers&#146;
          Private Capital, the private investment arm of the Ontario Teachers&#146;
          Pension Plan (&#147;Teachers&#148;), becoming shareholders of Bell Globemedia.</font>
        </div></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">BCE
          currently owns 68.5 percent of Bell Globemedia&#146;s outstanding shares
          and Woodbridge owns 31.5 percent. Under the new shareholder structure,
          Woodbridge will own 40 percent of Bell Globemedia and BCE, Teachers
          and Torstar will each own 20 percent. At the closing, Teachers and Torstar
          will each purchase its interest in Bell Globemedia from BCE for $283
          million each and Woodbridge will purchase its additional 8.5 percent
          interest from BCE for $120 million. BCE is expected to receive cash
          proceeds of approximately $1.3 billion, including $607 million as a
          return of capital.</font> </div></td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td><font face="Arial, Helvetica, sans-serif"><font size="2"><b>5. </b></font></font></td>
      <td><font face="Arial, Helvetica, sans-serif"><font size="2"><b><u>Full
        Description of Material Change </u></b></font></font></td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">BCE
          and Woodbridge, as the current shareholders of Bell Globemedia, announced
          on December 2, 2005 that Torstar and Teachers will join them as</font>
        </div></td>
    </tr>
  </table>
  <P ALIGN="LEFT">&nbsp;</P>
  <P ALIGN="LEFT">&nbsp;</P>
  <HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
  <p>&nbsp;</p>
  <p align="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151;
    2 &#151;</FONT> </p>
  <p align="center">&nbsp;</p>
  <table width="99%" border="0">
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">shareholders
          in Bell Globemedia, subject to regulatory approval and other closing
          conditions. Bell Globemedia&#146;s assets include the CTV television
          network, The Globe and Mail and interests in fifteen specialty television
          services.</font></p>
        <p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">BCE
          currently owns 68.5 percent of Bell Globemedia&#146;s outstanding shares
          and Woodbridge, together with its affiliate 1565117 Ontario Limited
          (&#147;1565117&#148;), owns 31.5 percent. Under the new shareholder
          structure, Woodbridge will own 40 percent of Bell Globemedia and BCE,
          Teachers and Torstar will each own 20 percent. At the closing, which
          is expected to take place in the third quarter of 2006 assuming regulatory
          approvals have been obtained, Teachers and Torstar will each purchase
          its interest in Bell Globemedia from BCE for $283 million each and Woodbridge
          will purchase its additional 8.5 percent interest from BCE for $120
          million.</font> </p>
        <p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">At
          the time of closing, Torstar, Teachers and Woodbridge will each invest
          in Bell Globemedia on the same financial valuation, which anticipates
          an enterprise value in the range of $2.6 billion to $2.7 billion and
          an equity value of $1.413 billion.</font> </p>
        <p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">In
          conjunction with the agreement to make these ownership changes, Bell
          Globemedia will restructure its capital on a basis more appropriate
          to ongoing operations through additional borrowing and a return of capital
          to BCE and Woodbridge. The recapitalization is expected to be completed
          in January 2006.</font></p>
        <p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
          recapitalization of Bell Globemedia and the sale of its shares to Torstar,
          Teachers and Woodbridge will see BCE receive total cash proceeds of
          approximately $1.3 billion, comprising $607 million as a return of capital,
          which is expected to be received by BCE in January 2006, and $686 million
          at the closing of the new ownership structure. Together with its remaining
          20 percent interest in Bell Globemedia, these transactions value BCE&#146;s
          pre-recapitalization interest in Bell Globemedia at approximately $1.575
          billion.</font> </p>
        <p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">BCE
          views the transactions as an effective means to reduce the amount of
          capital that BCE has invested in Bell Globemedia while at the same time
          allowing BCE to leverage its continued access to Bell Globemedia&#146;s
          content for BCE&#146;s growth platforms &#150; wireless, Internet and
          television. BCE will continue to consolidate Bell Globemedia until the
          closing of the new ownership structure, at which time BCE will equity
          account for its 20% interest in Bell Globemedia.</font><font size="2" face="Arial, Helvetica, sans-serif">
          </font> </p>
        <p align="LEFT"><font size="2" face="Arial, Helvetica, sans-serif">The
          transaction will have no effect on Bell Globemedia&#146;s senior leadership,
          operations or mix of business.</font> </p>
        <p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
          transactions are subject to a number of approvals and closing conditions,
          including approval by the Canadian Radio-television and Telecommunications
          Commission (&#147;CRTC&#148;) and the Competition Bureau. Filings to
          commence the review process are expected to be made promptly and decisions
          are anticipated in 2006. In addition, Bell Globemedia expects to obtain
          the necessary</font></p></td>
    </tr>
  </table>
  <p align="center">&nbsp;</p>
  <font size="2" face="Arial, Helvetica, sans-serif"> </font>
  <P ALIGN="LEFT">&nbsp;</P>
  <HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
  <P ALIGN="LEFT">&nbsp;</P>
  <font size="2" face="Arial, Helvetica, sans-serif"> </font>
  <P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">&#151;
    3 &#151;</font> </P>
  <font size="2" face="Arial, Helvetica, sans-serif"> </font>
  <P ALIGN="LEFT">&nbsp; </P>
  <font size="2" face="Arial, Helvetica, sans-serif"> </font>
  <table width="99%" border="0">
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">incremental
          bank debt in December and make the cash distributions by way of return
          of capital to BCE and Woodbridge in January 2006.</font> </div></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><p><font face="Arial, Helvetica, sans-serif"><font size="2"><b><font size="1">Forward
          Looking Statements</font></b></font></font></p>
        <p align="justify"><font size="1" face="Arial, Helvetica, sans-serif">Certain
          statements made in this material change report, including, but not limited
          to, the expected closing of the transactions referred to herein (including
          the changes in ownership of Bell Globemedia and its return of capital
          to BCE and Woodbridge) and the anticipated future business prospects
          of Bell Globemedia, and other statements that are not historical facts,
          are forward-looking and are subject to important risks, uncertainties
          and assumptions. The results or events predicted in these forward-looking
          statements may differ materially from actual results or events.</font></p>
        <p align="justify"><font size="1" face="Arial, Helvetica, sans-serif">Factors
          that could cause results or events to differ materially from current
          expectations include, among other things, the fact that the expected
          closing of the transactions referred to in this material change report
          is subject to a number of approvals and closing conditions, including
          approval by the CRTC and the Competition Bureau, the ability of Bell
          Globemedia to obtain the necessary incremental bank debt financing referred
          to in this material change report, the ability of Bell Globemedia to
          pay the necessary portion of such incremental bank financing to BCE
          and Woodbridge and other closing conditions that are customary in a
          transaction of this nature. Other factors that could cause results or
          events to differ materially from current expectations also include,
          among other things, the fact that Bell Globemedia&#146;s future business
          prospects are subject to a number of risks and assumptions including:
          Bell Globemedia&#146;s dependence on advertising which in turn is affected
          by competitive pressures, including Bell Globemedia&#146;s ability to
          attract and retain viewers and readers, and by general economic and
          market conditions; competitive pressures in the specialty and conventional
          television markets and increased competition for fewer print customers;
          the fact that most of Bell Globemedia&#146;s advertising contracts are
          short-term contracts that advertisers can cancel on short notice; increasing
          fragmentation in television markets; the development and adoption of
          new media distribution technologies; and the impact of pending or future
          litigation, adverse changes in laws or regulations, and adverse regulatory
          initiatives and proceedings, including decisions by the CRTC including
          those that might adversely affect Bell Globemedia&#146;s broadcast licences.</font></p>
        <p align="justify"><font size="1" face="Arial, Helvetica, sans-serif">For
          additional information with respect to certain of these and other factors,
          please refer to BCE&#146;s annual information form for the year ended
          December 31, 2004 dated March 2, 2005 filed with the U.S. Securities
          and Exchange Commission, under Form 40-F, and filed with the Canadian
          provincial securities regulatory authorities. The forward-looking statements
          contained in this material change report represent BCE&#146;s expectations
          as of December 2, 2005 and, accordingly, are subject to change after
          such date. However, BCE disclaims any intention and assumes no obligation
          to update or revise any forward-looking statements, whether as a result
          of new information, future events or otherwise.</font></p></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>6.
        </b></font></font></td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b><u>Reliance
        on Subsection 7.1(2) or (3) of National Instrument 51-102 </u></b></font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2">Not
        applicable. </font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>7.
        </b></font></font></td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b><u>Omitted
        Information</u> </b></font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2">Not
        applicable. </font></font></td>
    </tr>
  </table>
  <P ALIGN="LEFT"><font size="2" face="Arial, Helvetica, sans-serif"><BR>
    </font><font face="Arial, Helvetica, sans-serif"> </font></P>
  <P ALIGN="LEFT">&nbsp;</P>
  <HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
  <P ALIGN="LEFT">&nbsp;</P>
  <P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151;
    4 &#151;</FONT></P>
  <P ALIGN="center">&nbsp;</P>
  <table width="99%" border="0">
    <tr>
      <td width="10%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>8.</b></font></font></td>
      <td width="90%"><font face="Arial, Helvetica, sans-serif"><font size="2"><b>
        <u>Executive Officer </u></b></font></font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">For further
        information contact Martine Turcotte, Chief Legal Officer, (514) 870-4637.</font></td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%">&nbsp;</td>
    </tr>
    <tr>
      <td width="10%">&nbsp;</td>
      <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">DATED
        this 12<sup>th</sup> day of December, 2005.</font></td>
    </tr>
  </table>
  <br>
  <font size="2" face="Arial, Helvetica, sans-serif"> </font><font face="Arial, Helvetica, sans-serif">
  </font>
  <table width="99%" border="0">
    <tr>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td><p><font size="2" face="Arial, Helvetica, sans-serif"></font></p>
        <p>&nbsp;</p></td>
    </tr>
    <tr>
      <td width="45%">&nbsp;</td>
      <td width="10%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">Per:</font></div></td>
      <td width="45%"><font size="2" face="Arial, Helvetica, sans-serif"><em>(signed)
        Martine Turcotte</em></font></td>
    </tr>
    <tr>
      <td width="45%">&nbsp;</td>
      <td width="10%">&nbsp;</td>
      <td width="45%"><HR NOSHADE COLOR="Black" SIZE="1"></td>
    </tr>
    <tr>
      <td>&nbsp;</td>
      <td>&nbsp;</td>
      <td><font size="2" face="Arial, Helvetica, sans-serif">Martine Turcotte<br>
        Chief Legal Officer</font></td>
    </tr>
  </table>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
  <p>&nbsp;</p>
  <p>&nbsp;</p>
  <p><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B><u>EXECUTION COPY</u></B></FONT></p>
  <p>&nbsp; </p>
</div>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>BELL GLOBEMEDIA
  INC.<br>
  </B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; and
  &#151;<br>
  </FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>BCE INC.<br>
  </B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; and
  &#151;<br>
  </FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>THE WOODBRIDGE
  COMPANY LIMITED<br>
  </B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; and
  &#151;<br>
  </FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>1565117
  ONTARIO LIMITED<br>
  </B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; and
  &#151;<br>
  </FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ONTARIO
  TEACHERS&#146; PENSION PLAN BOARD<br>
  </B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; and
  &#151;<br>
  </FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>TORSTAR
  CORPORATION<br>
  </B></FONT></P>
<P ALIGN="CENTER">&nbsp;</P>
<hr width=100% size=1 color=BLACK noshade>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="4" FACE="Arial, Helvetica, sans-serif"><B>RECAPITALIZATION
  AGREEMENT</B></FONT></P>
<hr width=100% size=1 color=BLACK noshade>
<P ALIGN="CENTER">&nbsp;</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>December
  1, 2005</B></FONT></P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>TABLE
  OF CONTENTS</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="left"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  1</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">INTERPRETATION</font></strong></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>2</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Definitions</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">2</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Certain
      Rules of<b> </b>Interpretation</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">15</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Prior Approval
      of CRTC</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">16</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.4</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Actions
      by the Corporation</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">16</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.5</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Woodbridge
      &#150; Joint and Several Liability</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">16</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.6</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Purchasers
      &#150; Several<b> </b>Liability</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">17</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.7</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font><font size="2" face="Arial, Helvetica, sans-serif">Knowledge</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">17</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.8</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Entire
      Agreement</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">17</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.9</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Waiver</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">18</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.10</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Governing
      Law</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">18</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.11</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Submission
      to Jurisdiction</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">18</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.12</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Accounting
      Principles</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">18</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.13</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Invalidity
      of Provisions</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">19</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">1.14</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Third Party
      Beneficiaries</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">19</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <font size="2" face="Arial, Helvetica, sans-serif"><strong>ARTICLE 2</strong></font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">RECAPITALIZATION
      TRANSACTIONS</font></strong></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>19</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">2.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Refinancing
      and Distribution Transactions</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">19</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">2.2 </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Share Purchase<b>
      </b>Transactions</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">21</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <font size="2" face="Arial, Helvetica, sans-serif"><strong>ARTICLE 3</strong></font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><strong>REPRESENTATIONS
      AND WARRANTIES OF THE PARTIES</strong></font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>23</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">3.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Organization</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">23</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">3.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Corporate
      Power, Due Authorization, Enforceability and No Violation</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">23</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">3.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Third Party
      Consents</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">25</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">3.4</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Litigation</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">25</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE 4</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b>ADDITIONAL
      REPRESENTATIONS AND WARRANTIES OF THE</b> <strong>CORPORATION</strong></font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>25
        </strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">4.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Capitalization
      of the Corporation</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">26
        </font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <font size="2" face="Arial, Helvetica, sans-serif"><strong>ARTICLE 5</strong></font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">ADDITIONAL
      REPRESENTATIONS AND WARRANTIES OF THE CORPORATION IN FAVOUR OF TEACHERS
      AND TORSTAR</font></strong></td>
    <td width="5%" valign="bottom"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>26</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Subsidiaries
      and Equity Investments</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">27</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Organization
      of Subsidiaries</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">27
        </font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Capitalization
      of Subsidiaries</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">27</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.4</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Financial
      Statements and Contingent Liabilities</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">28</font></div></td>
  </tr>
</table>
<P ALIGN="left"><font size="2" face="Arial, Helvetica, sans-serif"> </font></P>
<P ALIGN="left">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="left"><FONT size="2" FACE="Arial, Helvetica, sans-serif"></FONT></P>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; ii
  &#151;</FONT> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.5 </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Absence
      of Certain Changes or Events</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">28</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.6</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Absence
      of Dividends and Distributions</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">28</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.7</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Absence
      of Undisclosed Liabilities</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">28</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.8</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Absence
      of Guarantees</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">28</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.9</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> CRTC Licenses
      and Other Governmental Authorizations</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">29</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.10</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Material
      Contracts</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">29</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.11</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Title to
      Assets</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">29</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.12</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Fixed Assets</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">30</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.13</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Government
      Grants</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">30</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.14</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Litigation</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">30</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.15</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Real Property</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">30</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.16</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Environmental</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">32</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.17</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Tax Matters</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">33</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.18</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Employment<b>
      </b>Matters</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">33</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.19</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Collective
      Agreements</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">34</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.20</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Employee
      Plans</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">34</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.21</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Intellectual<b>
      </b>Property</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">36</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.22</font></td>
    <td width="80%"> <p align="left"><font size="2" face="Arial, Helvetica, sans-serif">Websites
        and Domain Names</font></p></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">36</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.23</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Compliance
      with Laws</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">37
        </font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.24 </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Restrictive
      Covenants</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">37</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.25</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Insurance</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">37</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.26</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Non-Arm's
      Length Transactions</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">38</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">5.27</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Books and
      Records</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">38</font></div></td>
  </tr>
</table>
<p><font size="2" face="Arial, Helvetica, sans-serif"><br>
  <strong>ARTICLE 6</strong></font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">ADDITIONAL
      REPRESENTATIONS AND WARRANTIES OF BCE</font></strong></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>38</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">6.1 </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Title to
      Purchased<b> </b>Shares</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">38</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">6.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Residence
      of BCE</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">39</font></div></td>
  </tr>
</table>
<p><font size="2" face="Arial, Helvetica, sans-serif"><br>
  <strong>ARTICLE 7</strong></font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">ADDITIONAL
      REPRESENTATIONS AND WARRANTIES OF WOODBRIDGE</font></strong></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>39
        </strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">7.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Availability
      of Funds</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">39</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">7.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Foreign
      Investment Review</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">39</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">7.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Purchaser
      an Accredited Investor</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">39</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">7.4</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Registered
      and Beneficial Ownership</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">39
        </font></div></td>
  </tr>
</table>
<p><br>
  <font size="2" face="Arial, Helvetica, sans-serif"><strong>ARTICLE 8</strong></font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><strong>ADDITIONAL
      REPRESENTATIONS AND WARRANTIES OF TEACHERS</strong></font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>40</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">8.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Availability
      of Funds</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">40</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">8.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Foreign
      Investment Review</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">40</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">8.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Purchaser
      an Accredited Investor</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">40</font></div></td>
  </tr>
</table>
<p><font size="2" face="Arial, Helvetica, sans-serif"> </font></p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p>&nbsp; </p>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; iii
  &#151;</FONT></P>
<P ALIGN="center">&nbsp;</P>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>ARTICLE 9</strong>
  </font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">ADDITIONAL
      REPRESENTATIONS AND WARRANTIES OF TORSTAR</font></strong></td>
    <td width="5%"><div align="right"><strong><font size="2" face="Arial, Helvetica, sans-serif">40</font></strong></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">9.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Availability
      of Funds</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">40
        </font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">9.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Foreign
      Investment Review</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">41</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">9.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Purchaser
      an Accredited Investor</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">41</font></div></td>
  </tr>
</table>
<p><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>ARTICLE 10</strong></FONT></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">NON-WAIVER;
      SURVIVAL</font></strong></td>
    <td width="5%"><div align="right"><strong><font size="2" face="Arial, Helvetica, sans-serif">41</font></strong></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">10.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Non-Waiver</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">41</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">10.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Nature
      and Survival</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">41</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <font size="2" face="Arial, Helvetica, sans-serif"><strong>ARTICLE 11</strong></font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">COVENANTS
      OF THE PARTIES</font></strong></td>
    <td width="5%"><div align="right"><strong><font size="2" face="Arial, Helvetica, sans-serif">42</font></strong></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Positive
      Covenants</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">42</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Commercial
      Arrangements</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">43</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Agreement
      Regarding Names</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">43</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.4</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">CRTC<b>
      </b>Matters</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">44</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.5</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Competition
      Act<b> </b>Matters</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">46</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.6</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">League<b>
      </b>Approvals</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">47</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.7</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Transaction
      Approvals</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">48</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">11.8</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Negative<b>
      </b>Covenants</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">50</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE 12</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">CONDITIONS
      PRECEDENT</font></strong></td>
    <td width="5%"><div align="right"><strong><font size="2" face="Arial, Helvetica, sans-serif">51</font></strong></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">12.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Conditions
      for the Benefit of Parties</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">51</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE 13</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">INDEMNIFICATION</font></strong></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>54</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">13.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Indemnifications
      for Breaches of Covenants and Warranty, etc.</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">54</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">13.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Limitations
      &#150; All Parties</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">54</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">13.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Indemnification
      Procedures for Third Person Claims</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">55</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">13.4</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> BCE Indemnification
      of the Corporation</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">56</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">13.5</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Indemnification
      Claims</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">57</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <font size="2" face="Arial, Helvetica, sans-serif"><strong>ARTICLE 14</strong></font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">DISPUTE
      RESOLUTION AND ARBITRATION</font></strong></td>
    <td width="5%"><div align="right"><strong><font size="2" face="Arial, Helvetica, sans-serif">57</font></strong></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">14.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Dispute
      Resolution and Arbitration Procedure</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">57</font></div></td>
  </tr>
</table>
<p><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE 15</B></FONT></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><strong><font size="2" face="Arial, Helvetica, sans-serif">TERMINATION</font></strong></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>58</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">15.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Closing
      Time</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">58</font></div></td>
  </tr>
</table>
<P ALIGN="left"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B> </B></FONT></P>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p>&nbsp;</p>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#151; iv
  &#151;</FONT></P>
<div align="left"><font size="2" face="Arial, Helvetica, sans-serif"> </font>
</div>
<P ALIGN="left"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B><br>
  ARTICLE 16</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b>GENERAL</b></font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif"><strong>58</strong></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Place
      of Closing</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">58</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.2</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Expenses</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">58</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.3</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Public
      Notices</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">59</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.4</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Notices</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">59
        </font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.5</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Assignment</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">62</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.6</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Further
      Assurances</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">63</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.7 </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">No Offering
      Memorandum</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">63</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.8</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Language</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">63</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">16.9</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Counterparts</font></td>
    <td width="5%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">63</font></div></td>
  </tr>
</table>
<P ALIGN="left"><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>SCHEDULES</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="25%"><font size="2" face="Arial, Helvetica, sans-serif">Schedule
      14.1</font></td>
    <td width="60%"><font size="2" face="Arial, Helvetica, sans-serif">&#150;
      Dispute Resolution and Arbitration Procedures</font></td>
    <td width="5%">&nbsp;</td>
  </tr>
</table>
<P ALIGN="left"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B> </B></FONT></P>
<P ALIGN="left">&nbsp;</P>
<P ALIGN="left">&nbsp;</P>
<P ALIGN="left">&nbsp;</P>
<P ALIGN="left">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="left">&nbsp;</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="left">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif"><strong>THIS
      RECAPITALIZATION AGREEMENT</strong> is made December 1, 2005</font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%"><font size="2" face="Arial, Helvetica, sans-serif"><strong>B
      E T W E E N:</strong></font></td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp; </font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif"><strong>BELL
      GLOBEMEDIA INC.</strong></font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif">&#151;
      and &#151; </font> </td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif"><b>BCE
      INC. </b> </font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif">&#151;
      and &#151;</font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif"><b>THE
      WOODBRIDGE COMPANY LIMITED</b></font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif">&#151;
      and &#151; </font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1565117
      ONTARIO LIMITED</b></font> </td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif">&#151;
      and &#151;</font> </td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif"><b>ONTARIO
      TEACHERS&#146; PENSION PLAN BOARD</b></font></td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%">&nbsp;</td>
  </tr>
  <tr>
    <td width="25%">&nbsp;</td>
    <td width="75%"><font size="2" face="Arial, Helvetica, sans-serif">&#151;
      and &#151;</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>TORSTAR CORPORATION</b></font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p><font size="2" face="Arial, Helvetica, sans-serif"> </font><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>RECITALS:</B></FONT></p>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">A.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">BCE
        owns 2,740,000,000 Shares (being 68.5% of the outstanding Shares) and
        Woodbridge owns 1,260,000,000 Shares (being 31.5% of the outstanding Shares)
        on the date hereof.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">B.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">To
        accommodate the interests of its current shareholders and to further the
        best interests of the Corporation, management of the Corporation has developed
        a recapitalization plan to increase the leverage of the Corporation, return
        capital to the current shareholders of the Corporation and to introduce
        two new shareholders, all on the terms and conditions of this Agreement.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">C.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">No
        shareholder of the Corporation is acquiring legal or effective control
        of the Corporation as a result of the Transactions contemplated by this
        Agreement.</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 2 -</font></p>
<p>&nbsp; </p>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW
  THEREFORE</B> in consideration of the mutual covenants and agreements contained
  in this Agreement and other good and valuable consideration (the receipt and
  sufficiency of which are hereby acknowledged), the Parties hereto agree as follows.</font>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  1</B></FONT></P>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>INTERPRETATION</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Definitions</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">In this Agreement:</font></td>
  </tr>
</table>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;1565117&#148;</strong>
  means 1565117 Ontario Limited, a corporation incorporated under the laws of
  Ontario, its successors and permitted assigns; </FONT></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Act&#148;</strong>
  means the <I>Business Corporations Act</I> (Ontario), as the same may be amended
  from time to time </FONT><font size="2" face="Arial, Helvetica, sans-serif">and
  any successor legislation thereto; </font> </P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Affected
  Principal&#148;</strong> and<strong> &#147;Affected Principals&#148; </strong>have
  the meanings attributed thereto in section 14.1.1; </FONT></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Agreement&#148;</strong>
  means this Recapitalization Agreement, including all schedules to, and instruments
  supplementing or amending or confirming, this Agreement and references to <strong>&#147;Article&#148;</strong>
  or <strong>&#147;section&#148; </strong>mean and refer to the specified Article
  or section of this Agreement; </FONT></P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;ARC&#148;</strong>
  means an advance ruling certificate;</FONT> </P>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Arm's Length"</strong>
  has the meaning attributed thereto under the Tax Act; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"BCE"</strong> means
  BCE Inc., a corporation incorporated under the laws of Canada, its successors
  and permitted assigns;</font> </p>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;BCE
  Distribution&#148;</strong> has the meaning attributed thereto in section 2.1.2.6;
  </FONT></P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Bell
  Trade-marks License&#148;</strong> has the meaning attributed thereto in section
  11.3.1; </FONT></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Benefit
  Plans&#148;</strong> means any and all employment benefits relating to disability
  or wage continuation during a period of absence from work (including sick leave,
  short-term disability, long-term disability and workers compensation), vacation
  and vacation pay, severance and termination pay, separation from</FONT> </P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 3 -</font></P>
<P ALIGN="LEFT">&nbsp; </P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif">service
  benefits, hospitalization, health, medical or dental treatments or expenses,
  life insurance, death or survivor&#146;s benefits and supplementary employment
  insurance, in each case regardless of whatever or not such benefits are insured,
  self-insured, or administrative services only;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Books
  and Records&#148;</strong> means all books and records of the Corporation and
  its Subsidiaries, including financial, personnel, corporate, operations and
  sales books, books of account, sales and purchase records, lists of suppliers
  and customers, formulae, business reports, plans and projections and all other
  documents, surveys, plans, files, records, correspondence, and other data and
  information, financial or otherwise including all data and information stored
  on computer-related or other electronic media;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Broadcasting
  Act&#148;</strong> means the <I>Broadcasting Act</I> (Canada), as the same may
  be amended from time to time and any successor legislation thereto;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Business
  Day&#148;</strong> means any day, other than Saturday, Sunday or any statutory
  holiday in the Province of Ontario or the Province of Quebec;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Claims&#148;</strong>
  means all claims, demands, actions, suits, causes of action, assessments or
  reassessments, damages, losses, charges, judgments, debts, costs, interest,
  liabilities or expenses, including reasonable professional fees and all costs
  incurred in investigating or pursuing any of the foregoing or any proceeding
  relating to any of the foregoing;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"><strong>"Closing"</strong>
means the completion of the Share Purchase Transactions at the Closing Time; </font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Closing
  Date&#148;</strong> means the fifth Business Day after the day on which the
  last Transaction Approval is obtained;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Closing
  Time&#148;</strong> means 10:00 a.m., Toronto time, on the Closing Date or such
  other time on such date as the Parties may agree as the time at which the Closing
  shall take place;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Collective
  Agreements&#148;</strong> means all collective agreements, letters of understanding,
  letters of intent and similar agreements with any Union relating to any Employees
  by which the Corporation or any of its Subsidiaries, is bound or which imposes
  any obligations upon the Corporation or any of its Subsidiaries;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Commercial
  Arrangements Framework Agreement&#148;</strong> means the agreement between
  the Corporation and BCE to be executed and delivered upon the execution of this
  Agreement, in a form acceptable to the Parties, each acting reasonably; </FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 4 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Commissioner&#148;</strong>
  means the Commissioner of Competition appointed under the Competition Act;</FONT>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Compensation
  Plans&#148;</strong> means any and all employment benefits relating to bonus,
  incentive pay or compensation, performance compensation, deferred compensation,
  profit sharing or deferred profit sharing, share purchase, share option, stock
  appreciation, phantom stock, employee loans or any other type of arrangement,
  other than a Pension Plan or Benefit Plan, providing for compensation or benefits
  additional to base pay or salary;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Competition
  Act&#148; </strong>means the <I>Competition Act </I>(Canada), as the same may
  be amended from time to time and any successor legislation thereto, and includes
  the notifiable transaction regulations thereunder;</FONT> </P>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Competition Act
  Approval"</strong> means either:</font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="5%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">that
        the Commissioner shall have issued an ARC pursuant to section 102 of the
        Competition Act in respect of the Share Purchase Transactions, and shall
        not have revoked or threatened to revoke such certificate; or</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="5%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> that:</font>
    </td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(i)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        the waiting period under section 123 of the Competition Act shall have
        expired or the Commissioner shall have waived the notification obligations
        of the Parties under section 113(c) of the Competition Act, and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(ii)
      </font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">the
        Commissioner shall have advised the Parties in writing that the Commissioner
        does not intend to make an application under Part VIII of the Competition
        Act for an order in respect of the Share Purchase Transactions and any
        terms and conditions attached to such advice shall be acceptable to the
        Parties, and the Commissioner shall not have revoked or threatened to
        revoke such written advice or modified or threatened to modify any of
        the terms and conditions attaching to it such that these terms and conditions
        are no longer acceptable to the Parties;</font> </div></td>
  </tr>
</table>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>&#147;Contracts&#148;</strong>
  means all contracts, licenses, leases, agreements, commitments, permits, entitlements
  and engagements; </font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 5 -</font></p>
<p>&nbsp;</p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>&#147;Control&#148;</strong>
  means:</font> </p>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(a)
      </font></td>
    <td width="85%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">when
        applied to the relationship between a Person and a corporation, the beneficial
        ownership by such Person at the relevant time of shares of such corporation
        carrying more than the greater of 50% of the voting rights ordinarily
        exercisable at meetings of shareholders of such corporation and the percentage
        of voting rights ordinarily exercisable at meetings of shareholders of
        such corporation that are sufficient to elect a majority of the directors
        of such corporation; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(b)
      </font></td>
    <td width="85%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">when
        applied to the relationship between a Person and a partnership or joint
        venture, the beneficial ownership by such Person at the relevant time
        of more than 50% of the ownership interests of the partnership or joint
        venture in circumstances where it can reasonably be expected that such
        Person has the power to direct the affairs of the partnership or joint
        venture;</font></div></td>
  </tr>
</table>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif">and the
  words<strong> &#147;Controlled by&#148;</strong>, and similar words have corresponding
  meanings; provided that a Person who Controls a corporation, partnership or
  joint venture shall be deemed to Control a corporation, partnership or joint
  venture (the <strong>&#147;Second-mentioned Person&#148;</strong>) which is
  Controlled by the Second-mentioned Person and so on;</FONT> </P>
<div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Corporation"</strong>
  means Bell Globemedia Inc., a corporation incorporated under the laws of Ontario,
  its successors and permitted assigns; </font> </div>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Corporation
  Third Party Consents&#148;</strong> means the consents, approvals, orders, authorizations,
  notifications and filings required to be obtained in connection with the execution,
  delivery and performance of this Agreement, or any of the other documents and
  agreements to be delivered hereunder, by the Corporation, as disclosed in writing
  by the Corporation on or prior to the date hereof;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"><strong>"CRTC"</strong> means
the Canadian Radio-television and Telecommunications Commission or any successor
body thereto; </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;CRTC
  Application&#148;</strong> means the application to the CRTC for approval of
  the Share Purchase Transactions, as provided in section 11.4;</FONT></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 6 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"> <strong>&#147;CRTC
  Approval&#148;</strong> means the approval of the CRTC of the Share Purchase
  Transactions on the terms set forth in the CRTC Application; provided, however,
  that approval of the CRTC Application that is subject to a condition precedent
  shall not be effective until such condition precedent has actually been satisfied;</FONT>
</P>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"CRTC Request"</strong>
  has the meaning attributed thereto in section 11.4.5; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"CRTC Submission"</strong>
  has the meaning attributed thereto in section 11.4.5; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"CTV"</strong> means
  CTV Inc., a corporation incorporated under the laws of Ontario, its successors
  and permitted assigns; </font> </p>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;CTV
  Notes&#148;</strong> means the $150,000,000 of 10-year, 7.15% notes issued by
  CTV on July 30, 1999;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Demand
  Operating Facility&#148;</strong> means the $25,000,000 demand operating facility
  made as of July 28, 2003 between The Toronto-Dominion Bank and the Corporation,
  as amended or supplemented;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"><strong>"Disputes"</strong>
has the meaning attributed thereto in section 14.1.1; </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Employees&#148;
  </strong>means all individuals employed or retained by the Corporation or any
  of its Subsidiaries including, for greater certainty, those employees of the
  Corporation or any of its Subsidiaries on long-term disability leave or other
  absence;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Employee
  Plans&#148;</strong> means all plans, arrangements, agreements, programs, policies,
  practices or undertakings, whether oral or written, formal or informal, funded
  or unfunded, registered or unregistered relating to any:</FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif">Pension
      Plans; </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> Benefit
      Plans; or</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> Compensation
      Plans;</font></td>
  </tr>
</table>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif">to which
  the Corporation or any of its Subsidiaries is a party to or bound by or under
  which the Corporation or any of its Subsidiaries has, or will have, any liability
  or contingent liability with respect to any Employees or former Employees (or
  any dependants or beneficiaries of any such Employees or former Employees),
  individuals working on contract or other individuals providing services to the
  Corporation or any of its Subsidiaries of a kind normally provided by employees;
  </FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 7 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Encumbrances&#148;</strong>
  means any pledge, lien, charge, security interest, lease, title retention agreement,
  mortgage, restriction, development or similar agreement, easement, right-of-way,
  title defect, option or adverse claim or encumbrance of any kind or character
  whatsoever and <strong>&#147;Encumbered&#148; </strong>has a similar extended
  meaning;</FONT> </P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Environment&#148;</strong>
  means the environment or natural environment as defined in any Environmental
  Laws and includes air, surface water, ground water, land surface, soil, subsurface
  strata, any sewer system and the environment in the workplace;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Environmental
  Approvals&#148;</strong> means all legally binding permits, certificates, approvals,
  licenses, authorizations, consents, agreements, instructions, directions, registrations
  or approvals issued, granted, conferred or required by Governmental Authorities
  pursuant to Environmental Laws with respect to the operations, business or assets
  of the Corporation or any of its Subsidiaries;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Environmental
  Laws&#148; </strong>means all Laws relating in full or in part to the Environment
  or health and safety, and includes those Laws relating to the storage, generation,
  use, handling, manufacture, processing, labeling, advertising, sale, display,
  transportation, treatment, reuse, recycling, Release and disposal of Hazardous
  Substances;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Environmental
  Reports&#148;</strong> means all of the Phase I and Phase II environmental assessments
  in the possession of the Corporation and its Subsidiaries relating to Real Property;</FONT>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Existing
  Shareholder Agreement&#148;</strong> means the amended and restated unanimous
  shareholder agreement in respect of the Corporation made effective as of January
  1, 2001 between BCE, The Thomson Corporation, Thomson Canada Limited, Woodbridge
  and the Corporation, as amended or supplemented;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Fair
  Market Value&#148;</strong> means the fair market value as determined by the
  board of directors of the Corporation in consultation with such advisors as
  the board of directors requires in the circumstances and as certified to the
  Parties in writing by the board of directors of the Corporation as a fair and
  reasonable determination of the fair market value;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Financial
  Statements&#148;</strong> means the audited consolidated financial statements
  of the Corporation for the fiscal year ended December 31, 2004 and the unaudited
  consolidated financial statements of the Corporation for the ten month period
  ended October 31, 2005, true copies of which have been disclosed in writing
  by the Corporation to the Purchasers on or prior to the date hereof; </FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 8 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Fixed
  Assets&#148;</strong> means the fixed assets, machinery, equipment, fixtures,
  furniture, furnishings, vehicles, material handling equipment, implements and
  spare parts owned or used or held by the Corporation or any of its Subsidiaries,
  including any which are in storage or in transit, and other tangible property
  and facilities used by the Corporation or any of its Subsidiaries, whether located
  in or on its premises or elsewhere;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Governmental
  Authority&#148;</strong> means any government, regulatory authority, governmental
  department, agency, commission (including the CRTC), board, tribunal, bureau,
  governmental instrumentality, Crown corporation, or court or other law, rule
  or regulation-making entity having or purporting to have jurisdiction on behalf
  of any nation, or any province or state or other subdivision thereof or any
  municipality, district or other subdivision thereof;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Governmental
  Authorizations&#148;</strong> means all authorizations, approvals (including
  Competition Act Approval, CRTC Approval and Environmental Approvals), orders,
  consents, directives, notices, licenses (including licenses from the CRTC),
  permits, variances, registrations or similar rights issued to, or required by,
  the Corporation or any of its Subsidiaries in connection with their respective
  businesses by any Governmental Authority;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Hazardous
  Substance&#148;</strong> means any pollutant, contaminant, waste of any nature,
  hazardous substance, hazardous material, toxic substance, prohibited substance,
  dangerous substance or dangerous good as defined, judicially interpreted or
  identified in any Environmental Laws, including any asbestos, asbestos-containing
  materials, solvents and petroleum hydrocarbons;</FONT> </P>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Indemnified Party"</strong>
  has the meaning attributed thereto in section 13.1; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Indemnifying Party"</strong>
  has the meaning attributed thereto in section 13.1; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Independent Directors"</strong>
  has the meaning attributed thereto in the Shareholder Agreement; </font> </p>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Intellectual
  Property&#148;</strong> means all material patents, copyrights, Trade-marks,
  and industrial designs (including registrations of and applications for all
  of the foregoing in any jurisdiction and renewals, divisions, extensions and
  reissues, where applicable, relating thereto), trade secrets, confidential information,
  technology (including rights with respect to computer software) and all other
  material intellectual property rights of any kind owned or used by the Corporation
  or any of its Subsidiaries in connection with their respective businesses; </FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 9 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Laws&#148;</strong>
  means all applicable laws, including common law, statutes, by-laws, rules, regulations,
  orders, ordinances, protocols, codes, guidelines, treaties, policies, notices,
  decrees, directions and judgments or other requirements of any Governmental
  Authority;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"><strong>"Leagues" </strong>means
the NHL and the NBA collectively, and <strong>"League"</strong> means either of
them; </font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;League
  Approvals&#148;</strong> means the NHL Approval and the NBA Approval collectively,
  and<strong> &#147;League Approval&#148;</strong> means either of them;</FONT>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;League
  Letters&#148;</strong> means the NHL Letter and the NBA Letter collectively,
  and <strong>&#147;League Letter&#148;</strong> means either of them;</FONT>
</P>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"League Request"</strong>
  has the meaning attributed thereto in section 11.6.6; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"League Submission"</strong>
  has the meaning attributed thereto in section 11.6.6; </font> </p>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Leased
  Real Property&#148;</strong> means all material premises used by the Corporation
  or any of its Subsidiaries in the operation of their respective businesses which
  are leased, subleased, licensed or otherwise occupied, but not owned, by the
  Corporation or any of its Subsidiaries and the interest of the Corporation or
  any of its Subsidiaries in all plants, buildings, structures, fixtures, erections,
  improvements, easements, rights-of-way, spur tracks and other appurtenances
  situate on or forming part of such premises;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Long-term
  Debt of CTV&#148;</strong> means, at any time, collectively:</FONT> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="85%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        the amounts outstanding under the amended and restated loan agreement
        made as of July 30, 1999 among CTV and the lenders named therein, as amended,
        including accrued interest and any prepayment or other fees or expenses
        payable under the terms thereof; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="85%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        the amounts outstanding under the CTV Notes, including accrued interest
        and any prepayment, make whole or other fees or expenses payable under
        the terms thereof;</font> </div></td>
  </tr>
</table>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Material
  Adverse Effect&#148;</strong> means any event, change, circumstance or effect
  that is, or could reasonably be expected to be, individually or in the aggregate,
  materially adverse to the financial condition, assets, business, operations
  or results of operations of the Corporation and its Subsidiaries on a consolidated
  basis;</FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 10 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"> <strong>&#147;Material
  Contracts&#148;</strong> means any Contract of the Corporation or any of its
  Subsidiaries that is material to the Corporation and its Subsidiaries on a consolidated
  basis, including those material Contracts relating to:</FONT> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> long-term
      and bank indebtedness;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> co-ownership,
      joint venture or partnership arrangements;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> program
      supply;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(d)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> distribution
      or carriage agreements;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(e)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> printing;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(f)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> Real Property
      Leases; and</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(g)</font></td>
    <td width="85%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        to the extent not disclosed in any of clause (a) to (f) above, matters
        outside the ordinary course of business of the Corporation or its Subsidiary,
        as the case may be;</font></div></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif"><strong>"MLSE"</strong>
  means Maple Leaf Sports & Entertainment Ltd., a corporation amalgamated under
  the laws of Ontario, its successors and permitted assigns; </font></P>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif"><strong>"NBA"</strong>
  means the National Basketball Association and any successors thereto;</font>
</P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;NBA
  Approval&#148;</strong> means the consent of the National Basketball Association
  to the changes in the indirect ownership of MLSE and the Toronto Raptors as
  a result of the Share Purchase Transactions;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;NBA
  Letter&#148;</strong> means letter agreement dated July 1, 2003 among, <I>inter
  alia</I>, the Corporation, BCE, Woodbridge Parent, 1565117, MLSE and the NBA
  with respect to certain direct and indirect transfers of BCE&#146;s and the
  Corporation&#146;s ownership interest in MLSE;</FONT> </P>
<div align="justify">
  <p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"New Credit Facilities"</strong>
    means the new credit facilities of the Corporation described in the Refinancing
    Commitment; </font></p>
  <p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"NHL"</strong>
    means the National Hockey League and any successors thereto; </font> </p>
</div>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;NHL
  Approval&#148;</strong> means the consent of the NHL to the changes in the indirect
  ownership of MLSE and the Toronto Maple Leafs as a result of the Share Purchase
  Transactions; </FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 11 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;NHL
  Letter&#148;</strong> means the letter agreement dated July 1, 2003 among, <I>inter
  alia</I>, the Corporation, BCE, Woodbridge Parent, 1565117, MLSE and the NHL
  with respect to certain indirect transfers of BCE&#146;s and the Corporation&#146;s
  ownership interest in MLSE;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Occupational
  Health and Safety Laws&#148;</strong> means the <I>Occupational Health and Safety
  Act</I> (Ontario), as amended from time to time and any successor legislation
  thereto, the <I>Workplace Safety and Insurance Act </I>(Ontario), as amended
  from time to time and any successor legislation thereto, or such other similar
  federal or provincial legislation relating in full or in part to the protection
  of employee health and safety as may be applicable;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Owned
  Real Property&#148;</strong> means all freehold lands which are owned or purported
  to be owned, in fee simple, by the Corporation or any of its Subsidiaries, including
  all plants, buildings, structures, fixtures, erections, improvements, easements,
  rights-of-way, spur tracks and other appurtenances situate on or forming part
  of such lands;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Parties&#148;</strong>
  means the Corporation, BCE, Woodbridge Parent, 1565117, Teachers and Torstar
  collectively, and <strong>&#147;Party&#148;</strong> means any one of them;</FONT>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Pension
  Plans&#148;</strong> means any and all benefits relating to retirement or retirement
  savings including, without limitation, pension plans (whether or not such plans
  are registered or unregistered, funded or unfunded), pensions or supplemental
  pensions, &#147;registered retirement savings plans&#148; (as defined in the
  Tax Act), &#147;registered pension plans&#148; (as defined in the Tax Act) and
  &#147;retirement compensation arrangements&#148; (as defined in the Tax Act);</FONT>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Permitted
  Encumbrances&#148;</strong> means the Encumbrances disclosed in writing by the
  Corporation to each other Party on or prior to the date hereof;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Person&#148;</strong>
  means any individual, sole proprietorship, partnership, firm, entity, unincorporated
  association, unincorporated syndicate, unincorporated organization, trust, corporation,
  limited liability company, unlimited liability company, Governmental Authority
  and a natural Person in such Person&#146;s capacity as trustee, executor, administrator
  or other legal representative;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Purchased
  Shares&#148;</strong> means, collectively, the Woodbridge Shares, the Teachers
  Shares and the Torstar Shares; </FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 12 -</font></p>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Purchasers&#148;</strong>
  means Woodbridge Parent, Teachers and Torstar collectively, and &#147;<B>Purchaser</B>&#148;
  means any one of them;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"><strong>"Real Property"</strong>
means the Owned Real Property and the Leased Real Property;</font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Real
  Property Leases&#148; </strong>means those agreements to lease, leases, subleases
  or licenses or other agreements or rights pursuant to which the Corporation
  or any of its Subsidiaries uses or occupies any Leased Real Property;</FONT>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Refinancing
  Commitment&#148;</strong> means the commitment letter dated November 16, 2005
  between The Toronto-Dominion Bank and the Corporation with respect to the Refinancing
  Debt, a true copy of which has been provided by the Corporation to each other
  Party on or prior to the date hereof;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Refinancing
  and Distribution Transactions&#148;</strong> means, collectively:</FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the establishment
      of the New Credit Facilities;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the issuance
      of the notice of redemption of the CTV Notes;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the borrowing
      of the Refinancing Debt;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(d)</font></td>
    <td width="85%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        the subscription by the Corporation for shares of CTV or the loan by the
        Corporation to CTV or a combination thereof referred to in section 2.1.2.4;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(e)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the repayment
      of the Long-term Debt of CTV;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(f)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the BCE
      Distribution; and</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(g)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the Woodbridge
      Distribution; </font></td>
  </tr>
</table>
<P ALIGN="LEFT"><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Refinancing
  Debt"</strong> has the meaning attributed thereto in section 2.1.2.1;</font></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Release&#148;</strong>
  has the meaning attributed thereto in any Environmental Laws and includes any
  sudden, intermittent or gradual release, spill, leak, pumping, addition, pouring,
  emission, emptying, discharge, injection, escape, leaching, disposal, dumping,
  deposit, spraying, burial, abandonment, incineration, seepage, placement or
  introduction, whether accidental or intentional;</FONT></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 13 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Shareholder
  Agreement&#148;</strong> means the shareholder agreement between the Parties
  to be executed and delivered at Closing, in a form acceptable to the Parties,
  each acting reasonably; </FONT></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Shares&#148;</strong>
  means the Class A common shares of the Corporation; </FONT></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Share
  Purchase Price&#148;</strong> has the meaning attributed thereto in section
  2.2.1; </FONT></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Share
  Purchase Transactions&#148;</strong> means, collectively:</FONT> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the Woodbridge
      Share Purchase;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the Teachers
      Share Purchase; and</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the Torstar
      Share Purchase;</font></td>
  </tr>
</table>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Subsidiary&#148;</strong>
  means, with respect to any Person, a subsidiary within the meaning of the Act
  and any partnership or joint venture Controlled by such Person;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Tax
  Act&#148;</strong> means the <I>Income Tax Act</I> (Canada), as the same may
  be amended from time to time and any successor legislation thereto;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Tax
  Returns&#148;</strong> means, all returns, reports, declarations, elections,
  notices, filings, information returns and statements filed or required to be
  filed in respect of Taxes;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Taxes&#148;</strong>
  includes, all taxes, duties, fees, premiums, assessments, imposts, levies and
  other charges of any kind whatsoever imposed by any Governmental Authority,
  together with all interest, penalties, fines, additions to tax or other additional
  amounts imposed in respect thereof, including those levied on, or measured by,
  or referred to as income, gross receipts, profits, capital, transfer, land transfer,
  sales, goods and services, harmonized sales, use, value-added, excise, stamp,
  withholding, business, franchising, property, employer health, payroll, employment,
  health, social services, education and social security taxes, all surtaxes,
  all customs duties and import and export taxes, all license, franchise and registration
  fees and all employment insurance, health insurance and Canada, Quebec and other
  government pension plan premiums or contributions;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"><strong>"Teachers"</strong>
means Ontario Teachers' Pension Plan Board, its successors and permitted assigns;
</font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Teachers
  Shares&#148;</strong> has the meaning attributed thereto in section 2.2.3.1;
  </FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 14 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Teachers
  Share Purchase&#148; </strong>means the share purchase described in section
  2.2.3.1; </FONT></P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#147;<strong>Teachers
  Share Purchase Price&#148;</strong> has the meaning attributed thereto in section
  2.2.3.1; </FONT></P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Torstar&#148;</strong>
  means Torstar Corporation, a corporation incorporated under the laws of Ontario,
  its successors and permitted assigns;</FONT> </P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Torstar
  Shares&#148; </strong>has the meaning attributed thereto in section 2.2.4.1;
  </FONT></P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Torstar
  Share Purchase&#148;</strong> means the share purchase described in section
  2.2.4.1;</FONT></P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"> <strong>&#147;Torstar
  Share Purchase Price&#148; </strong>has the meaning attributed thereto in section
  2.2.4.1; </FONT></P>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif">&#147;<B>Trade-marks</B>&#148;
  means trade-marks, brand names, internet domain names, trade names, slogans,
  URLs, </FONT><font size="2" face="Arial, Helvetica, sans-serif">designs, graphics,
  logos and other indicia of origin, whether or not registered and the goodwill
  associated therewith; </font></P>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Transactions"
  </strong>means, collectively, the Refinancing and Distribution Transactions
  and the Share Purchase Transactions;</font> </P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Transaction
  Approvals&#148;</strong> means, collectively:</FONT> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> Competition
      Act Approval;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> CRTC Approval;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the League
      Approvals; and </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="5%"><font size="2" face="Arial, Helvetica, sans-serif">(d)</font></td>
    <td width="85%"><font size="2" face="Arial, Helvetica, sans-serif"> the Corporation
      Third Party Consents;</font></td>
  </tr>
</table>
<br>
<font size="2" face="Arial, Helvetica, sans-serif"> <strong>"Transferee"</strong>
has the meaning attributed thereto in Section 11.6.7;</font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Union&#148;</strong>
  means any union, trade union or association that may qualify as a union or trade
  union pursuant to the terms of the <I>Labour Relations Act</I> (Ontario), as
  the same may be amended from time to time and any successor legislation thereto,
  or any other similar provincial or federal legislation relating in full or in
  part to union activity as may be applicable;</FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 15 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"> <strong>&#147;Woodbridge&#148;</strong>
  means, collectively, Woodbridge Parent and 1565117 and their respective successors
  and permitted assigns;</FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"><strong>"Woodbridge Distribution"</strong>
has the meaning attributed thereto in section 2.1.2.6;</font>
<P ALIGN="justify"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><strong>&#147;Woodbridge
  Parent&#148;</strong> means The Woodbridge Company Limited, a corporation incorporated
  under the laws of Ontario, its successors and permitted assigns;</FONT> </P>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Woodbridge Shares"</strong>
  has the meaning attributed thereto in section 2.2.2.1; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Woodbridge Share
  Purchase"</strong> means the share purchase described in section 2.2.2.1; </font></p>
<p><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Woodbridge Share
  Purchase Price"</strong> has the meaning attributed thereto in section 2.2.2.1;
  and </font></p>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Workopolis
  Partnership Agreement"</strong> means the amended and restated partnership agreement
  dated as of January 1, 2000 among Toronto Star Newspapers Limited, 3911322 Canada
  Inc., Gesca Ltd. and Bell Globemedia Publishing Inc., as amended or supplemented.</font>
</p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.2</b></font></td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Certain
      Rules of Interpretation</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;In
      this Agreement and the Schedules:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">1.2.1</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> <strong>Time
      of Essence</strong> &#151; time is of the essence of this Agreement;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">1.2.2</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>Currency
        </b>&#151; except as expressly provided in this Agreement, all amounts
        in this Agreement are stated and shall be paid in Canadian currency;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">1.2.3</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>Headings
        and Table of Contents </b>&#151; The inclusion of headings and a table
        of contents in this Agreement are for convenience of reference only and
        shall not affect the construction or interpretation hereof;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">1.2.4</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>Gender
        and Number </b>&#151; In this Agreement, unless the context otherwise
        requires, words importing the singular include the plural and vice versa
        and words importing gender include all genders;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">1.2.5</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>Consent
        </b>&#151; whenever a provision of this Agreement requires an approval
        or consent by a Party to this Agreement and notification of such approval
        or consent is not delivered within the</font></div></td>
  </tr>
</table>
<P ALIGN="left">&nbsp;</P>
<P ALIGN="left">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 16 -</font></P>
<P ALIGN="left">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">applicable
        time limit, then, unless otherwise specified, the Party whose consent
        or approval is required shall be conclusively deemed to have withheld
        its approval or consent;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">1.2.6
        &nbsp;&nbsp;&nbsp;&nbsp;<b>Calculation of Time </b>&#151; unless otherwise
        specified, time periods within or following which any payment is to be
        made or act is to be done shall be calculated by excluding the day on
        which the period commences and including the day on which the period ends
        and by extending the period to the next Business Day following if the
        last day of the period is not a Business Day;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">1.2.7
        &nbsp;&nbsp;&nbsp;&nbsp;<b>Business Day </b>&#151; whenever any payment
        is to be made or action to be taken under this Agreement is required to
        be made or taken on a day other than a Business Day, such payment shall
        be made or action taken on the next Business Day following such day; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">1.2.8
        &nbsp;&nbsp;&nbsp;&nbsp;<b>Inclusion </b>&#151; where the word &#147;including&#148;
        or &#147;includes&#148; appears in this Agreement, it means &#147;including
        (or includes) without limitation&#148;.</font></div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.3</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>Prior Approval of
      CRTC</b></font></td>
  </tr>
</table>
<P ALIGN="LEFT"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Parties agree that they will take no actions pursuant to this Agreement which
  require the prior approval of the CRTC unless and until such approval has been
  obtained.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.4</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Actions
      by the Corporation</b></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  of BCE and Woodbridge shall cause, to the extent of its respective legal rights,
  the Corporation to execute all documents and to take all actions as are necessary
  to satisfy and fulfill the obligations, conditions and covenants required to
  be satisfied or fulfilled by the Corporation under this Agreement. The Corporation
  shall cause its wholly-owned Subsidiaries and, to the extent of its legal rights,
  its other Subsidiaries, to execute all documents and take all actions as are
  necessary to satisfy and fulfill the obligations, conditions and covenants required
  to be satisfied or fulfilled by Subsidiaries of the Corporation under this Agreement.</font>
</p>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.5</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Woodbridge
      &#150; Joint and Several Liability</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
  of the obligations and liabilities of Woodbridge hereunder and under any instrument
  or document delivered pursuant to this Agreement, including the representations
  and warranties contained herein, and in any such other instrument or document,
  are and shall be deemed to be, joint and several obligations and liabilities
  of Woodbridge Parent and 1565117. </font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 17 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.6</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Purchasers
      &#150; Several Liability</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
  to section 1.5, all of the obligations and liabilities of each of the Purchasers
  hereunder and under any instrument or document delivered pursuant to this Agreement,
  including without limitation, the representations and warranties contained herein,
  and in any such other instrument or document delivered by any Purchaser, are
  and shall be deemed to be several, and not joint, obligations and liabilities
  of the respective Purchaser.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.7
      </b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Knowledge</b></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
  reference to the knowledge of any Party shall mean to the best of the knowledge,
  information and belief of the senior officers of such Party, including the senior
  officers of its Subsidiaries, who are primarily responsible for the matter,
  but excluding in the case of BCE, the senior officers of the Corporation and
  its Subsidiaries.</font> </p>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.8</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Entire
      Agreement</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  Agreement and the agreements and other documents to be delivered pursuant to
  this Agreement constitute the entire agreement pertaining to the subject matter
  of this Agreement and supersede all prior agreements, understandings, negotiations
  and discussions, whether oral or written, between any of the Parties. There
  are no warranties, conditions, representations or other agreements between any
  of the Parties in connection with the subject matter of this Agreement except
  as specifically set forth in this Agreement and any document delivered pursuant
  to this Agreement. No reliance is placed on any representation, warranty, opinion,
  advice or assertion of fact made by any Party to this Agreement or its directors,
  officers, employees and agents, to any other Party to this Agreement or its
  directors, officers, employees and agents, except to the extent that any such
  representation, warranty, opinion, advice or assertion of fact has been reduced
  to writing and included as a term of this Agreement and none of the Parties
  has been induced to enter into this Agreement by reason of any representation,
  warranty, opinion, advice or assertion of fact that has not been reduced to
  writing and included as a term of this Agreement or any document delivered pursuant
  to this Agreement. Accordingly, there shall be no liability, either in tort
  or in contract, assessed in relation to any such representation, warranty, opinion,
  advice or assertion of fact, except to the extent contemplated above. No supplement,
  modification or amendment or termination of this Agreement shall be binding
  unless executed in writing by the Parties to be bound thereby. </font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 18 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.9</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Waiver</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
  waiver of any condition or other provision or of any breach of any provision
  of this Agreement shall be effective or binding unless made in writing and signed
  by the Party purporting to give such waiver and, unless otherwise provided in
  such written waiver, shall be limited to the specific condition or other provision
  or breach waived. No waiver by any Party of any conditions or other provisions
  or of any breach of any term, covenant, representation or warranty contained
  in this Agreement, in one or more instances, shall be deemed to be or construed
  as a further or continuing waiver of any other condition or provision (whether
  or not similar) or of any breach of any other term, covenant, representation
  or warranty contained in this Agreement.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.10</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Governing
      Law</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  Agreement shall be governed by and construed in accordance with the laws of
  the Province of Ontario and the laws of Canada applicable therein and shall
  be treated, in all respects, as an Ontario contract.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.11</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Submission
      to Jurisdiction</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
  to Article 14, any suit, action or proceeding against any Party or any of its
  assets arising out of or relating to this Agreement may be brought in a competent
  court of the Province of Ontario, and each Party hereby irrevocably and unconditionally
  attorns and submits to the non-exclusive jurisdiction of such court over the
  subject matter of any such suit, action or proceeding. Subject to Article 14,
  each Party irrevocably waives and agrees not to raise any objection it might
  now or hereafter have to any such suit, action or proceeding in any such court
  including any objection that the place where such court is located is an inconvenient
  forum or that there is any other suit, action or proceeding in any other place
  relating in whole or in part to the same subject matter.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.12</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Accounting
      Principles</B></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
  references to generally accepted accounting principles means to principles recommended,
  from time to time, in the Handbook of the Canadian Institute of Chartered Accountants
  and all accounting terms not otherwise defined in this Agreement have the meanings
  assigned to them in accordance with Canadian generally accepted accounting principles.
  </font></p>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 19 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.13</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Invalidity
      of Provisions</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  of the provisions contained in this Agreement is distinct and severable and
  a declaration of invalidity or unenforceability of any such provisions or part
  thereof by a court of competent jurisdiction shall not affect the validity or
  enforceability of any other provisions hereof. The Parties shall engage in good
  faith negotiations to replace any provision which is declared invalid or unenforceable
  with a valid and enforceable provision, the economic and substantive effect
  of which shall come as close as possible to that of the invalid or unenforceable
  provision which it replaces.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>1.14</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Third
      Party Beneficiaries</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Party intends that this Agreement shall not benefit or create any right or cause
  of action in or on behalf of any Person, other than the Parties, and no Person
  other than the Parties shall be entitled to rely on the provisions hereof in
  any action, suit, proceeding, hearing or other forum.</font> <br>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  2</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>RECAPITALIZATION
  TRANSACTIONS</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>2.1</b></font></td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Refinancing
      and Distribution Transactions</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
        Parties acknowledge that prior to the execution of this Agreement, the
        Corporation has entered into the Refinancing Commitment.</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation
        shall use best efforts to promptly complete the Refinancing and Distribution
        Transactions at or as soon as practicable following the execution of this
        Agreement in accordance, in all material respects, with the terms and
        conditions of the Refinancing Commitment and the steps set out in this
        section 2.1 and in the order indicated below:</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;<b>Establishment of New Credit Facilities by the
        Corporation</b> &#151; The Corporation shall establish the New Credit
        Facilities in all material respects as provided for in the Refinancing
        Commitment;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Notice of Redemption of CTV Notes </b>&#151;
        Upon execution of the New Credit Facilities, CTV shall issue to each holder
        of the CTV Notes a written notice of the redemption of the CTV Notes in
        accordance with the terms of such notes;</font></div></td>
  </tr>
</table>
<p><b><font size="2" face="Arial, Helvetica, sans-serif"></font></b> </p>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 20 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Borrowing of Refinancing Debt by the
        Corporation </b>&#151; The Corporation shall terminate the Demand Operating
        Facility and shall borrow under the New Credit Facilities the amounts
        required to make the payments provided for under 2.1.2.4, 2.1.2.5 and
        2.1.2.6 below, without duplication (the &#147;<b>Refinancing Debt</b>&#148;);</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.2.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Subscription by the Corporation or Loan
        to CTV </b>&#151; The Corporation shall use a portion of the proceeds
        of the borrowing referred to in 2.1.2.3 above, which amount shall equal
        the payment provided for in 2.1.2.5 below, to subscribe for common shares
        of CTV or to make a loan to CTV or some combination thereof, and shall
        use a portion of the proceeds of the borrowing to pay all of the fees
        and expenses incurred by the Corporation in respect of borrowing the Refinancing
        Debt;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.2.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Repayment of Long-term Debt of CTV</b>
        &#151; CTV shall use the proceeds of the subscription or loan or combination
        thereof referred to in 2.1.2.4 above to repay all of the Long-term Debt
        of CTV and to pay all of the fees and expenses incurred by CTV in respect
        of borrowing the Refinancing Debt and repaying the Long-term Debt of CTV;
        and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.2.6
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Distributions by the Corporation</b>
        &#151; BCE and Woodbridge shall approve a special resolution of the Corporation,
        and the Corporation shall use a portion of the proceeds of the borrowing
        referred to in 2.1.2.3 above, to make a return of capital by way of a
        reduction in the stated capital of the Shares in the amount of $607,250,000
        to BCE (the &#147;<b>BCE Distribution</b>&#148;), of $85,325,274 to Woodbridge
        Parent and of $193,921,076 to 1565117 (together, the &#147;<b>Woodbridge
        Distribution</b>&#148;). Upon payment of each of the BCE Distribution
        and the Woodbridge Distribution, BCE and Woodbridge shall each receive
        a certificate from the Chief Financial Officer of the Corporation (including
        all necessary financial information supporting such certificate) in form
        and substance satisfactory to BCE and Woodbridge, each acting reasonably,
        confirming that the Corporation is legally permitted to make such distributions.</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
        Corporation shall execute and deliver such documents as may be necessary
        to complete the Refinancing and Distribution Transactions.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.1.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is
        a condition precedent to the completion of the Share Purchase Transactions
        that the Refinancing and Distribution Transactions shall have been completed
        on or prior to February 28,</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 21 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2006
        in accordance, in all material respects, with the terms and conditions
        of the Refinancing Commitment and the steps set out in section 2.1 and
        each of the Purchasers and BCE shall have received a certificate from
        the Corporation confirming the foregoing, signed for and on behalf of
        the Corporation by a senior officer thereof.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>2.2</b></font></td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Share
      Purchase Transactions</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>2.2.1</b></font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Share
      Purchase Price</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        aggregate price (the &#147;<b>Share Purchase Price</b>&#148;) to be paid
        by the Purchasers to BCE for the Purchased Shares shall be $685,195,257.
        For greater certainty, each Purchaser shall pay BCE the same price per
        Share hereunder.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>2.2.2</b></font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Woodbridge
      Share Purchase</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Subject
      to the provisions of this Agreement, at the Closing Time:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Purchase and Sale of Woodbridge Shares
        </b>&#150; BCE shall sell and Woodbridge Parent shall purchase 340,000,000
        Shares (being 8.5% of the outstanding Shares after giving effect to the
        Share Purchase Transactions) (the <b>&#147;Woodbridge Shares</b>&#148;)
        for $120,085,767 (the &#147;<b>Woodbridge Share Purchase Price</b>&#148;);</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Payment of Woodbridge Share Purchase
        Price </b>&#150; Woodbridge Parent shall pay and satisfy the Woodbridge
        Share Purchase Price by wire transfer of immediately available funds to
        an account or accounts designated by BCE;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Transfer and Delivery of the Woodbridge
        Shares </b>&#150; BCE shall transfer and deliver to Woodbridge Parent
        share certificates representing the Woodbridge Shares duly endorsed in
        blank for transfer, or accompanied by irrevocable security transfer powers
        of attorney duly executed in blank, in either case by the holders of record,
        and the Corporation shall take such steps as may be necessary to enter
        Woodbridge Parent upon the books of the Corporation as the holder of the
        Woodbridge Shares and to issue one or more share certificates to Woodbridge
        Parent representing the Woodbridge Shares; and</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.2.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Other Documents</b> &#150; BCE, Woodbridge
        and the Corporation shall execute and deliver such documents as may be
        necessary to complete the purchase and sale of the</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 22 -</font></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Woodbridge
        Shares, including the Shareholder Agreement and a notice of termination
        of the Existing Shareholder Agreement.</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>2.2.3</b></font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Teachers
      Share Purchase</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Subject
      to the provisions of this Agreement, at the Closing Time:</font> </td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.3.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Purchase and Sale of Teachers Shares</b>
        &#150; BCE shall sell and Teachers shall purchase 800,000,000 Shares (being
        20.0% of the outstanding Shares after giving effect to the Share Purchase
        Transactions) (the &#147;<b>Teachers Shares</b>&#148;) for $282,554,745
        (the &#147;<b>Teachers Share Purchase Price</b>&#148;);</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.3.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Payment of Teachers Share Purchase Price
        </b>&#150; Teachers shall pay and satisfy the Teachers Share Purchase
        Price by wire transfer of immediately available funds to an account or
        accounts designated by BCE;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.3.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Transfer and Delivery of the Teachers
        Shares </b>&#150; BCE shall transfer and deliver to Teachers one or more
        share certificates representing the Teachers Shares duly endorsed in blank
        for transfer, or accompanied by irrevocable security transfer powers of
        attorney duly executed in blank, in either case by the holders of record,
        and the Corporation shall take such steps as may be necessary to enter
        Teachers upon the books of the Corporation as the holder of the Teachers
        Shares and to issue one or more share certificates to Teachers representing
        the Teachers Shares; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.3.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Other Documents </b>&#150; BCE, Teachers
        and the Corporation shall execute and deliver such documents as may be
        necessary to complete the purchase and sale of the Teachers Shares, including
        the Shareholder Agreement.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>2.2.4</b></font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Torstar
      Share Purchase</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Subject
      to the provisions of this Agreement, at the Closing Time:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.4.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Purchase and Sale of Torstar Shares </b>&#150;
        BCE shall sell and Torstar shall purchase 800,000,000 Shares (being 20.0%
        of the outstanding Shares after giving effect to the Share Purchase Transactions)
        (the &#147;<b>Torstar Shares</b>&#148;) for $282,554,745 (the &#147;<b>Torstar
        Share Purchase Price</b>&#148;);</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 23 -</font></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.4.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b><b>Payment of Torstar Share Purchase
        Price </b>&#150; Torstar shall pay and satisfy the Torstar Share Purchase
        Price by wire transfer of immediately available funds to an account or
        accounts designated by BCE;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.4.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b><b>Transfer and Delivery of the Torstar
        Shares </b>&#150; BCE shall transfer and deliver to Torstar one or more
        share certificates representing the Torstar Shares duly endorsed in blank
        for transfer, or accompanied by irrevocable security transfer powers of
        attorney duly executed in blank, in either case by the holders of record,
        and the Corporation shall take such steps as may be necessary to enter
        Torstar upon the books of the Corporation as the holder of the Torstar
        Shares and to issue one or more share certificates to Torstar representing
        the Torstar Shares; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">2.2.4.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b></b><b>Other Documents </b>&#150; BCE,
        Torstar and the Corporation shall execute and deliver such documents as
        may be necessary to complete the purchase and sale of the Torstar Shares,
        including the Shareholder Agreement.</font></div></td>
  </tr>
</table>
<br>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  3</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>REPRESENTATIONS
  AND WARRANTIES OF THE PARTIES</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  as disclosed in writing on or prior to the date hereof, each Party represents
  and warrants to and in favour of each other Party the matters set out below
  applicable to it and acknowledges that each other Party is relying upon such
  representations and warranties in connection with the Transactions.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>3.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Organization</b></font></td>
  </tr>
</table>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
  the case of each Party other than Teachers, the Party has been duly incorporated,
  is validly subsisting and has full corporate power and authority to own its
  properties and conduct its business as currently owned and conducted. Teachers
  is a corporation without share capital continued and existing under the <I>Teachers&#146;
  Pension Act </I>(Ontario) and has full power and authority to administer the
  Ontario Teachers&#146; Pension Plan and manage the pension fund established
  to provide benefits thereunder.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>3.2</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b> Corporate
      Power, Due Authorization, Enforceability and No Violation</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Party has the requisite corporate power
        and authority to enter into this Agreement and to perform its obligations
        hereunder.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 24 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="3"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution and delivery of this Agreement
        and any other documents and agreements required by this Agreement to be
        delivered by the Party have been duly authorized and no other corporate
        proceeding on its part is necessary to authorize this Agreement or any
        other documents or agreements required by this Agreement to be delivered
        by the Party.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="3"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Agreement constitutes a valid and binding
        obligation of the Party enforceable against it in accordance with its
        terms, and at the Closing Time, the other documents and agreements required
        by this Agreement to be delivered by the Party will constitute valid and
        binding obligations of the Party, subject to, in each case, limitations
        with respect to enforcement imposed by law in connection with bankruptcy
        or similar proceedings or relating to the enforcement of creditors&#146;
        rights generally and to the extent that certain remedies are in the discretion
        of the court from which they are sought.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="3"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The execution and delivery by the Party
        of this Agreement and any other documents and agreements required by this
        Agreement to be delivered by the Party and the performance by the Party
        of its obligations thereunder will not:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.4.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;result, with or without the passage of time,
        in a violation or breach of, require any consent to be obtained under
        or give rise to any termination, purchase or sale right or payment obligation
        under any provision of:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.4.1.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the case of each Party other than Teachers,
        the certificate of incorporation, articles, by-laws, or other charter
        documents of the Party;</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.4.1.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the case of Teachers, the <i>Teachers&#146;
        Pension Act </i>(Ontario), or any documents or instruments governing the
        establishment and organization of Teachers or its powers;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.4.1.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any Laws, judgments or decrees applicable
        to the Party, subject to obtaining any of the Transaction Approvals applicable
        to the Party, except to the extent that the violation or breach of, or
        failure to obtain any consent under, any Laws, would not (x) have a Material
        Adverse Effect, (y) enjoin, restrict or prohibit any of the Transactions,
        or (z) prevent the Party from fulfilling all of its obligations set out
        in or arising from this Agreement; or</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp; </P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 25 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.4.1.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any contract, agreement, license, franchise
        or permit to which the Party is bound or subject to or is the beneficiary
        of, subject to obtaining any of the Transaction Approvals applicable to
        the Party, except to the extent that the violation or breach of, or failure
        to obtain any consent under any contract, agreement, license, franchise
        or permit would not (x) have a Material Adverse Effect; (y) enjoin, restrict
        or prohibit any of the Transactions, or (z) prevent any Party from fulfilling
        all of its obligations set out in or arising from this Agreement; or</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="70%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">3.2.4.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;result in the imposition of any Encumbrance
        upon any of the assets of the Corporation or any of its Subsidiaries other
        than Permitted Encumbrances.</font></div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>3.3</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Third
      Party Consents</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
  than Competition Act Approval, CRTC Approval, League Approvals and the Corporation
  Third Party Consents, there are no consents, approvals, orders, authorizations,
  notifications or filings required to be obtained in connection with the execution,
  delivery and performance of this Agreement, or any of the other documents and
  agreements to be delivered hereunder, by the Party.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>3.4</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Litigation</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
  is no suit, action, litigation, investigation, claim, complaint, grievance or
  proceeding, including appeals and applications for review, in progress, or,
  to the knowledge of the Party, pending or threatened before any Governmental
  Authority or arbitration panel which if determined adversely to the Party would:</font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">3.4.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;enjoin,
      restrict or prohibit the Transactions; or </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">3.4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prevent
      the Party from fulfilling all of its obligations set out in or arising from
      this Agreement.</font></td>
  </tr>
</table>
<P ALIGN="center"><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE 4 </B></FONT></P>
<P ALIGN="center"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ADDITIONAL
  REPRESENTATIONS AND WARRANTIES OF THE CORPORATION</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  as disclosed in writing on or prior to the date hereof, the Corporation represents
  and warrants to and in favour of each other Party the matters set out below
  and acknowledges that each </font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 26 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">other Party
  is relying upon such representations and warranties in connection with the Share
  Purchase Transactions.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>4.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Capitalization
      of the Corporation</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">4.1.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has provided to each other
        Party an accurate description of the authorized and issued capital of
        the Corporation.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;4.1.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the outstanding Shares have been
        duly authorized and validly issued and are fully paid and non-assessable.</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">4.1.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as provided for in this Agreement,
        there are no authorized, issued or outstanding options, warrants or other
        rights to purchase shares or other securities of the Corporation, no authorized,
        issued or outstanding securities or obligations convertible into or exchangeable
        for shares or other securities of the Corporation and no agreements, understandings
        or commitments (contingent or otherwise) to authorize or issue such options,
        warrants, rights, securities or obligations.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">4.1.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No holder of securities issued by the Corporation
        has any right to compel the Corporation to register or otherwise qualify
        such securities for public sale in Canada or the United States.</font></div></td>
  </tr>
</table>
<P ALIGN="center"><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE 5</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ADDITIONAL
  REPRESENTATIONS AND WARRANTIES OF THE CORPORATION IN</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>FAVOUR
  OF TEACHERS AND TORSTAR</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  as disclosed in writing on or prior to the date hereof, the Corporation represents
  and warrants to and in favour of each of Teachers and Torstar the matters set
  out below. Torstar acknowledges and agrees with each other Party that notwithstanding
  any of the representations and warranties in this Article 5, the Corporation
  has not provided Torstar with any confidential information regarding The Globe
  and Mail newspaper, all print and electronic publications related thereto or
  any of its online operations nor with any confidential information regarding
  MLSE. Notwithstanding the foregoing sentence, the Corporation acknowledges and
  agrees that each of Teachers and Torstar is relying upon all of the representations
  and warranties in this Article 5 in connection with the Teachers Share Purchase
  and the Torstar Share Purchase, respectively.</font> </P>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 27 -</font></p>
<p>&nbsp; </p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Subsidiaries
      and Equity Investments</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">5.1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
      Corporation has provided to Teachers and Torstar an accurate list of the
      Subsidiaries of the Corporation and does not have any other Subsidiaries
      and is not a partner in any partnerships.</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">5.1.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
      Corporation has provided to Teachers and Torstar an accurate list of the
      equity investments of the Corporation and its Subsidiaries with a book value
      of $250,000 or more.</font></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.2</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Organization
      of Subsidiaries</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Subsidiary of the Corporation has been duly incorporated, is validly subsisting
  and has full corporate power and authority to own its properties and conduct
  its business as currently owned and conducted.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.3</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Capitalization
      of Subsidiaries</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.3.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has provided to Teachers
        and Torstar an accurate description of the authorized and issued capital
        of the Subsidiaries of the Corporation. There are no authorized, issued
        or outstanding options, warrants or other rights to purchase shares or
        other securities of Subsidiaries of the Corporation, no authorized, issued
        or outstanding securities or obligations convertible into or exchangeable
        for shares or other securities of Subsidiaries of the Corporation and
        no agreements, understandings or commitments (contingent or otherwise)
        to authorize or issue such options, warrants, rights, securities or obligations.</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.3.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the outstanding shares of the Subsidiaries
        have been duly authorized and validly issued and are fully paid and non-assessable.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.3.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has provided to Teachers
        and Torstar an accurate description of the Corporation&#146;s direct and
        indirect ownership interest in each of its Subsidiaries.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.3.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No holder of securities issued by a Subsidiary
        of the Corporation has any right to compel such Subsidiary to register
        or otherwise qualify such securities for public sale in Canada or the
        United States.</font> </div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 28 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.4</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Financial
      Statements and Contingent Liabilities</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.4.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Financial Statements have been prepared
        in accordance with Canadian generally accepted accounting principles,
        subject, in the case of any unaudited financial statements, to the absence
        of notes and to customary year-end adjustments.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.4.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Financial Statements present fairly,
        in all material respects, the consolidated financial position and results
        of operations and cash flows of the Corporation and its Subsidiaries on
        a consolidated basis as of the dates thereof and for the periods covered
        thereby, subject, in the case of any unaudited financial statements, to
        customary year-end adjustments. The reserves and accrued liabilities disclosed
        on or reflected in the Financial Statements are sufficient in all material
        respects to provide for the liabilities in respect of which they have
        been established.</font> </div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.5</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Absence
      of Certain Changes or Events</b></font></td>
  </tr>
</table>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  as contemplated by or permitted under this Agreement, since December 31, 2004
  the business of the Corporation and its Subsidiaries has been conducted only
  in the ordinary course of business of such entity and there has not occurred
  any event that has had a Material Adverse Effect.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.6</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Absence
      of Dividends and Distributions</b></font></td>
  </tr>
</table>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
  than as disclosed in the Financial Statements or as contemplated by or permitted
  under this Agreement, since December 31, 2004 the Corporation has not declared
  or paid any dividend or made any distribution, whether in cash, in stock or
  <I>in specie</I>, on any of its outstanding shares.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.7</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Absence
      of Undisclosed Liabilities</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
  than as disclosed in the Financial Statements or as contemplated by or permitted
  under this Agreement, since December 31, 2004 the Corporation and its Subsidiaries
  have not incurred any liabilities (whether accrued, absolute, contingent or
  otherwise) except liabilities incurred in the ordinary course of business that
  would not have a Material Adverse Effect.</font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.8</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Absence
      of Guarantees</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  as contemplated by or permitted under this Agreement and except for guarantees
  or indemnities made by the Corporation or any Subsidiary in respect of another
  Subsidiary or the Corporation, neither the Corporation nor any of its Subsidiaries
  has given or agreed to give, or is a party or bound by, any guarantee or indemnity
  in respect of indebtedness or other financial obligations of any </font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 29-</font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">Person or
  any other commitment by which the Corporation or any Subsidiary is, or is contingently,
  responsible for such indebtedness or other obligations.</font> <font size="2" face="Arial, Helvetica, sans-serif">
  </font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.9</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>CRTC
      Licenses and Other Governmental Authorizations</B></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.9.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has made available to Teachers
        and Torstar true and complete copies of each license from the CRTC issued
        to the Corporation or any of its Subsidiaries.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.9.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation and its Subsidiaries own,
        possess or have obtained and are in material compliance with all Governmental
        Authorizations, including all licenses from the CRTC, necessary to conduct
        their respective businesses as now conducted in compliance with all Laws.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.9.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Governmental Authorizations, including
        all necessary licenses from the CRTC, are in full force and effect in
        accordance with their terms and there have been no material violations
        thereof and no proceedings are pending (other than renewal proceedings
        as a result of expirations in accordance with the terms thereof) or, to
        the knowledge of the Corporation, threatened, which could result in their
        revocation or limitation.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>5.10</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> Material Contracts</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.10.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has provided to Teachers
        and Torstar a complete and accurate list of the Material Contracts, all
        of which are in full force and effect unamended, except where the failure
        to be in full force and effect and unamended would not have a Material
        Adverse Effect.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;5.10.2
        &nbsp;&nbsp;&nbsp;&nbsp;The Corporation has made available to Teachers
        and Torstar true and complete copies of all Material Contracts.</font>
      </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.10.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No default exists (or, but for the passage
        of time or the giving of notice, would exist) under any Material Contract
        on the part of the Corporation or any of its Subsidiaries or, to the knowledge
        of the Corporation, on the part of any other party to such contracts other
        than defaults that would not have a Material Adverse Effect.</font> </div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.11</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Title
      to Assets</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  of the Corporation and its Subsidiaries is the sole beneficial owner of all
  of its assets and interests in assets, real and personal, with good and valid
  title, free and clear of all </font></P>
<P ALIGN="justify">&nbsp;</P>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 30 -</font></p>
<p>&nbsp;</p>
<p><font size="2" face="Arial, Helvetica, sans-serif">Encumbrances other than
  Permitted Encumbrances or Encumbrances that would not have a Material Adverse
  Effect.</font> </p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.12</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Fixed
      Assets</B></font></td>
  </tr>
</table>
<P ALIGN="LEFT"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Fixed Assets are in good condition, repair and (where applicable) working order,
  having regard to their use and age.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.13</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Government
      Grants</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
  are no contracts or agreements relating to grants or other forms of financial
  assistance, including loans with interest at below market rates, received by
  the Corporation or any of its Subsidiaries from any Governmental Authority.</font>
</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.14</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Litigation</B></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.14.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no suit, action, litigation, investigation,
        claim, complaint, grievance or proceeding, including appeals and applications
        for review, in progress, or, to the knowledge of the Corporation pending
        or threatened against or relating to the Corporation or any of its Subsidiaries
        before any Governmental Authority or arbitration panel, which, if determined
        adversely to the Corporation or Subsidiary would: (i) have a Material
        Adverse Effect; (ii) enjoin, restrict or prohibit any of the Transactions;
        or (iii) prevent the Corporation from fulfilling all of its obligations
        set out in or arising from this Agreement or any of the other documents
        or Agreements required by this Agreement to be delivered.</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.14.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is not presently outstanding against
        the Corporation or any of its Subsidiaries any assessment, judgment, decree,
        injunction, rule or order of any Governmental Authority or arbitrator
        that would have a Material Adverse Effect.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>5.15</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> Real Property</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has provided to Teachers
        and Torstar a complete and accurate list of the Owned Real Property and
        the Leased Real Property.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">5.15.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
      for Permitted Encumbrances:</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 31 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Corporation and its Subsidiaries are
        the beneficial owners of the Owned Real Property in fee simple with good
        and marketable title thereto free and clear of all Encumbrances;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the buildings, structures, erections, improvements
        and fixtures situate on or used in connection with the Owned Real Property
        are in good condition, repair and (where applicable) working order, having
        regard to their use and age and such assets have been regularly maintained
        and the Corporation and its Subsidiaries have such rights of entry and
        exit to and from the Real Properties as are reasonably necessary to carry
        on their respective businesses thereon;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;there are no material agreements or understandings
        between any landlord and tenant, or sublandlord and subtenant, other than
        as contained in the Real Property Leases, pertaining to the rights and
        obligations of the parties thereto;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;neither the Corporation nor any of its Subsidiaries
        has any material option, right of first refusal or other similar contractual
        right relating to the Leased Real Property other than as set forth in
        the Real Property Leases;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;neither the Corporation nor any of its Subsidiaries
        has waived, or omitted to take any action in respect of any rights under
        any of the Real Property Leases other than any waiver or omission that
        would not have a Material Adverse Effect;</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.6
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;no Person has any right to purchase any
        of the Owned Real Property, and no Person other than the Corporation or
        any of its Subsidiaries is using or has any right to use, as tenant, or
        is in possession or occupancy of, any material part of the Real Property;</font>
      </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.7
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;neither the Corporation nor any of its Subsidiaries
        has granted any option, right of first refusal or other similar contractual
        rights with respect to any of the Owned Real Property or any part thereof;</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.8
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;neither the Corporation nor any of its Subsidiaries
        has received any written notice of non-compliance with current zoning
        regulations that would affect its respective business in any material
        respect; and</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 32 -</font>
</p>
<P ALIGN="LEFT">&nbsp; </P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.15.2.9
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;neither the Corporation nor any of its Subsidiaries
        has received any written notice of any expropriation or condemnation or
        similar proceeding pending or threatened against the Owned Real Property
        or any part thereof that would affect its respective business in any material
        respect.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.16</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b> Environmental</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.16.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has made available to Teachers
        and Torstar true and complete copies of each Environmental Report.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.16.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly disclosed in the Environmental
        Reports and except for any matters that would not have a Material Adverse
        Effect:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.16.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;neither the Corporation nor any of its Subsidiaries
        nor any of the Real Property is in violation of any Environmental Law
        which violation, to the knowledge of the Corporation, requires or may
        reasonably be expected to require any work, remediation, monitoring, repairs,
        construction, change in business practices or operations, or expenditures;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.16.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;neither the Corporation nor any of its Subsidiaries
        has received any written demand or written notice with respect to a breach
        of or liability under, whether actual or alleged, any Environmental Laws;</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.16.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Corporation has no knowledge of any
        change in the terms and conditions of any Environmental Approvals or any
        renewal, modification, revocation, reissuance, alteration, transfer or
        amendment of such Environmental Approvals, or any review or issuance by,
        or approval of, any Governmental Authority of such Environmental Approvals
        in connection with the execution or delivery of this Agreement; and</font>
      </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.16.2.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to the knowledge of the Corporation, there
        are no expenses, penalties or costs to be incurred, or already accruing,
        by the Corporation or any of its Subsidiaries or in connection with the
        Owned Real Property and there is no reasonable basis for any claim against
        the Corporation or any of its Subsidiaries, in each case under any Environmental
        Laws or with respect to any Hazardous Substances.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 33 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.16.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties in this
        section 5.16 are the only representations and warranties applicable to
        environmental matters.</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.17</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Tax
      Matters</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.17.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation and each of its Subsidiaries
        has timely filed all Tax Returns required to be filed by it, has withheld
        Tax as required from all amounts paid or payable by it and remitted such
        Tax to the appropriate Governmental Authority and has timely paid, or
        caused to be timely paid, all amounts of Taxes due and payable by it as
        of the date hereof.</font> </div></td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> </b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.17.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adequate provisions have been made in the
        Financial Statements for all Taxes payable in respect of the business
        or assets of the Corporation and its Subsidiaries or otherwise for all
        periods up to the date of the most recent balance sheet comprising part
        of the Financial Statements.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.17.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Corporation nor any of its Subsidiaries
        has received any written notification that any issues involving Taxes
        have been raised (and are currently pending) by the Canada Revenue Agency
        or any other taxing authority in connection with any Taxes payable by
        it or Tax Return filed or required to be filed by it that would have a
        Material Adverse Effect.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.17.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Corporation nor any of its Subsidiaries
        will be subject to any Tax in respect of the Refinancing and Distribution
        Transactions in and of themselves, other than in respect of any interest
        received or receivable by the Corporation on any interest-bearing loan
        to CTV referred to in section 2.1.2.4. Based on current Laws and Canada
        Revenue Agency administrative practice, interest paid or payable by the
        Corporation on the Refinancing Debt will be deductible by the Corporation
        in computing its income for purposes of the Tax Act and any applicable
        provincial corporate or income tax legislation.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.17.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation is not a public corporation
        for purposes of the Tax Act or any applicable provincial corporate or
        income tax legislation.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>5.18</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> Employment Matters</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.18.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no written or oral contracts of
        employment entered into with any Employees earning in excess of $250,000
        per year other than contracts which are terminable on the giving of reasonable
        notice in accordance with applicable Laws.</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp; </P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 34 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.18.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation and its Subsidiaries are
        being operated in material compliance with all Laws relating to employees,
        including employment standards, Occupational Health and Safety Laws, human
        rights, labour relations and pay equity.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.18.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation and its Subsidiaries are
        not required to make severance, termination or similar payments to any
        employee as a result of the transactions contemplated by this Agreement.</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>5.19</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> Collective Agreements</b></font></td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.19.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has provided to Teachers
        and Torstar a complete and accurate list of all Collective Agreements.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.19.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has made available to Teachers
        and Torstar true and complete copies of all Collective Agreements.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.19.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no outstanding or, to the knowledge
        of the Corporation, threatened labour tribunal proceedings of any kind,
        including any proceedings which could result in certification of a trade
        union as bargaining agent for any Employees or dependent contractors not
        already covered by a Collective Agreement.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.19.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the knowledge of the Corporation, there
        are no threatened or apparent union organizing activities involving any
        Employees or dependent contractors not already covered by a Collective
        Agreement.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.19.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There is no strike or lock out occurring
        or, to the knowledge of the Corporation, threatened affecting the Corporation
        or any of its Subsidiaries.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.19.6
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Corporation nor any of its Subsidiaries
        has any unresolved grievances or pending arbitration cases outstanding
        or any labour problems that may lead to an interruption of operations
        at any location other than unresolved grievances, pending arbitration
        cases outstanding or labour problems that would not have a Material Adverse
        Effect.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>5.20</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> Employee Plans</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation has made available true
        and complete copies of all material Employee Plans or, where oral, written
        summaries of the material terms of such Employee Plans.</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp; </P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 35 -</font></P>
<p><font size="2" face="Arial, Helvetica, sans-serif"> </font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Employee Plans are established, registered
        (where required), qualified, administered and invested, in material compliance
        with: (i) the terms thereof; (ii) all applicable Laws; and (iii) the applicable
        Collective Agreements.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All material obligations to or under the
        Employee Plans (whether pursuant to the terms thereof, any Laws or the
        Collective Agreements) have been satisfied and there are no outstanding
        defaults or violations thereunder by the Corporation or any of its Subsidiaries
        other than defaults or violations that would not have a Material Adverse
        Effect.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the Employee Plans provide for benefit
        increases or the acceleration of funding obligations that are contingent
        upon or will be triggered by the entering into of this Agreement or any
        of the other documents or agreements required by this Agreement to be
        delivered or the completion of the Transactions.</font></div></td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All employer or employee payments, contributions
        or premiums required to be remitted, paid to or in respect of each Employee
        Plan have been paid or remitted in material compliance with the terms
        thereof, all Laws and the Collective Agreements, and no Taxes, penalties
        or fees are owing under any Employee Plan.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.6
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No event has occurred with respect to any
        registered Employee Plan which would result in the revocation of the registration
        of such Employee Plan or entitle any Person, without the consent of the
        Corporation or one of its Subsidiaries, to wind-up or terminate any Employee
        Plan, in whole or in part, or which could otherwise reasonably be expected
        to adversely affect the Tax status of any such plan.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.7
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Pension Plan is being funded in material
        compliance with the terms thereof, all Laws and the Collective Agreements.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.8
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No material changes have occurred or have
        been promised in respect of any Employee Plan since the date of the most
        recent financial, accounting, actuarial or other report, as applicable,
        issued in connection with any Employee Plan, which could reasonably be
        expected to materially adversely affect the relevant report (including
        rendering it misleading in any material respect) except for changes in
        general economic and market conditions.</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 36 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.9
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no withdrawals or transfers
        of assets from any Employee Plan otherwise than in accordance with the
        terms of the applicable Employee Plan, Collective Agreements and all Laws.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.10
        &nbsp;&nbsp;&nbsp;&nbsp;All benefits under any Employee Plan which provides
        benefits beyond retirement or other termination of service to Employees
        or former Employees (or to the beneficiaries or dependants of such Employees
        or former Employees) have been properly accrued on the relevant Financial
        Statements in accordance with Canadian generally accepted accounting principles.</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.20.11
        &nbsp;&nbsp;&nbsp;&nbsp;None of the Employee Plans requires or permits
        a retroactive increase in premiums or payments, and the level of insurance
        reserves, if any, under any insured Employee Plan are reasonable and sufficient
        to provide for all incurred but unreported claims.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>5.21</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> Intellectual Property</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.21.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where any Intellectual Property owned by
        the Corporation or any of its Subsidiaries is registered, all steps have
        been taken, including payment of fees and filing of documentation, that
        are necessary to maintain such registrations in good standing.</font>
      </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.21.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the Corporation nor any of its Subsidiaries
        has received written notice, that its use of any of the Intellectual Property
        infringes upon or breaches the intellectual property rights of any other
        Person, may result in a default or give rise to a right of termination,
        cancellation or acceleration of any obligation or loss of any benefit
        under any Material Contract.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.21.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no claims, oppositions, conflicts,
        proceedings, or investigations against any Person, or, to the knowledge
        of the Corporation, any breaches, interferences, infringements, violations
        or appropriations by any Person, relating to any of the Intellectual Property.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.21.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation and its Subsidiaries have
        the right to use all of the Intellectual Property which is necessary to
        conduct their respective businesses as currently conducted in all material
        respects.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>5.22</b></font></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b> Websites and Domain
      Names</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.22.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The content of the internet websites which
        form part of the Intellectual Property complies with all applicable Laws
        in all material respects.</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 37 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.22.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No internet domain name which forms part
        of the Intellectual Property was registered or acquired, or has been used,
        for an unlawful purpose or in bad faith, including primarily for the purpose
        of:</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">5.22.2.1
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;disrupting the business of a competitor;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.22.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;selling or transferring the domain name
        to the owner of a Trade-mark which is identical to or confusingly similar
        to the domain name registration or to a competitor of such owner;</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.22.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preventing the owner of a Trade-mark from
        reflecting the Trade-mark in a corresponding domain name registration;
        or</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">5.22.2.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;attempting to attract, for commercial gain,
        internet users to a particular website by creating a likelihood of confusion
        with the Trade-mark of another Person.</font></div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.23</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Compliance
      with Laws</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Corporation and its Subsidiaries are being operated in compliance with all applicable
  Laws in all material respects.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.24</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Restrictive
      Covenants</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Corporation and its Subsidiaries are not party to or bound or affected by any
  commitment, agreement or document, other than the Existing Shareholder Agreement,
  containing any covenant expressly limiting its ability to compete in any material
  respect in any line of business after the Closing on substantially the same
  basis as presently carried on.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.25</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Insurance
      </b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Corporation and its Subsidiaries maintain such policies of insurance (under
  BCE&#146;s umbrella coverage or otherwise), issued by responsible insurers,
  as are appropriate to its operations, property and assets, in such amounts and
  against such risks as are prudent for owners of comparable businesses, properties
  and assets. All such policies of insurance are in full force and effect and
  neither the Corporation nor any of its Subsidiaries are in material default,
  as to the payment of premium or otherwise, under the terms of any such policy.</font>
</P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 38 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.26</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Non-Arm&#146;s
      Length Transactions</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  for Contracts made solely between the Corporation and any Subsidiary or between
  any of the Subsidiaries of the Corporation, there are no Contracts between the
  Corporation or any of its Subsidiaries and any Person with whom the Corporation
  or any Subsidiary is not dealing, at the date hereof, at Arm&#146;s Length,
  other than Contracts entered into in the ordinary course of business on terms
  no less favourable to the Corporation and its Subsidiaries than are available
  from an Arm&#146;s Length party.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>5.27</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Books
      and Records</b></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
  Books and Records fairly and correctly disclose in all material respects the
  financial position of the Corporation and its Subsidiaries and all financial
  transactions relating to the businesses carried on by the Corporation and its
  Subsidiaries have been accurately recorded in such Books and Records.</font>
  <br>
</p>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  6 </B></FONT></P>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ADDITIONAL
  REPRESENTATIONS AND WARRANTIES OF BCE</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE
  represents and warrants to and in favour of each other Party the matters set
  out below and acknowledges that each other Party is relying upon such representations
  and warranties in connection with the Share Purchase Transactions.</font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>6.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Title
      to Purchased Shares</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
  to the completion of the Share Purchase Transactions, BCE is the beneficial
  and registered owner of 2,740,000,000 Shares, including the Purchased Shares.
  All of the Purchased Shares are validly issued, fully paid and non-assessable
  and are owned by BCE free and clear of all Encumbrances other than any restrictions
  on transfer contained in the articles of the Corporation and the Existing Shareholder
  Agreement. At or prior to the Closing Time, such restrictions will have been
  complied with or terminated and, at the Closing Time, BCE will have full legal
  right, power and authority to sell the Purchased Shares to the Purchasers free
  of all Encumbrances. Except as provided in this Agreement and the Existing Shareholder
  Agreement, there are no outstanding options, rights, entitlements, understandings
  or commitments (contingent or otherwise) to acquire the Purchased Shares from
  BCE.</font> </P>
<P ALIGN="justify">&nbsp;</P>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 39 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>6.2</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Residence
      of BCE</b></font></td>
  </tr>
</table>
<P ALIGN="LEFT"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE
  is not a non-resident of Canada under the Tax Act.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> <br>
</font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  7</B></FONT> </P>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ADDITIONAL
  REPRESENTATIONS AND WARRANTIES OF WOODBRIDGE</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Woodbridge
  represents and warrants to and in favour of each other Party the matters set
  out below and acknowledges that each other Party is relying upon such representations
  and warranties in connection with the Share Purchase Transactions.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>7.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Availability
      of Funds</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
  payable under the terms of this Agreement, Woodbridge Parent will have the funds
  required to pay and satisfy the Woodbridge Share Purchase Price.</font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>7.2</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Foreign
      Investment Review</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Neither
        Woodbridge Parent nor 1565117 is:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">7.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a non-Canadian for the purposes of the <em>Investment
        Canada Act</em> (Canada); or</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>
        </b>7.2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;controlled in fact by any non-Canadian
        or non-Canadian for the purposes of the <i>Investment Canada Act</i> (Canada).</font></div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>7.3</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Purchaser
      an Accredited Investor</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Woodbridge
  Parent is an &#147;accredited investor&#148; within the meaning of paragraph
  (m) of the definition of accredited investor in section 1.1 of National Instrument
  45-106 &#151; Prospectus and Registration Exemptions.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>7.4</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Registered
      and Beneficial Ownership</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
  to the completion of the Share Purchase Transactions, Woodbridge Parent and
  1565117 are the beneficial and registered owners of 385,000,000 Shares and 875,000,000
  Shares, respectively.</font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 40 -</font></P>
<P ALIGN="justify">&nbsp; </P>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  8</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ADDITIONAL
  REPRESENTATIONS AND WARRANTIES OF TEACHERS</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Teachers
  represents and warrants to and in favour of each other Party the matters set
  out below and acknowledges that each other Party is relying upon such representations
  and warranties in connection with the Share Purchase Transactions.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>8.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Availability
      of Funds</b></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
  payable under the terms of this Agreement, Teachers will have the funds required
  to pay and satisfy the Teachers Share Purchase Price.</font> </p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>8.2</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Foreign
      Investment Review</B></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">Teachers
      is not:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">8.2.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
      non-Canadian for the purposes of the <i>Investment Canada Act </i>(Canada);
      or</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">8.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;controlled in fact by a non-Canadian or
        non-Canadian for the purposes of the <i>Investment Canada Act</i> (Canada).</font></div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>8.3</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Purchaser
      an Accredited Investor</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Teachers
  is an &#147;accredited investor&#148; within the meaning of paragraph (i) of
  the definition of accredited investor in section 1.1 of National Instrument
  45-106 &#151; Prospectus and Registration Exemptions.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> <br>
</font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  9</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ADDITIONAL
  REPRESENTATIONS AND WARRANTIES OF TORSTAR</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Torstar
  represents and warrants to and in favour of each other Party the matters set
  out below and acknowledges that each other Party is relying upon such representations
  and warranties in connection with the Share Purchase Transactions.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>9.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Availability
      of Funds</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
  payable under the terms of this Agreement, Torstar will have the funds required
  to pay and satisfy the Torstar Share Purchase Price.</font> </P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 41 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>9.2</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Foreign
      Investment Review</B></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">Torstar
      is not:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">9.2.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
      non-Canadian for the purposes of the <i>Investment Canada Act</i> (Canada).;
      or</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;9.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;controlled in fact by any non-Canadian or
        non-Canadian for the purposes of the <i>Investment Canada Act</i> (Canada).</font></div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>9.3</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Purchaser
      an Accredited Investor</b></font></td>
  </tr>
</table>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Torstar
  is an &#147;accredited investor&#148; within the meaning of paragraph (m) of
  the definition of accredited investor in section 1.1 of National Instrument
  45-106 &#151; Prospectus and Registration Exemptions.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B><br>
  ARTICLE 10</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>NON-WAIVER;
  SURVIVAL</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>10.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Non-Waiver</b></font></td>
  </tr>
</table>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
  investigations made by or on behalf of any Party at any time shall have the
  effect of waiving, diminishing the scope or otherwise affecting any representation
  or warranty made by any other Party in or pursuant to this Agreement.</font>
</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>10.2</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b> Nature
      and Survival </b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">10.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to section 10.2.2, all representations
        and warranties contained in this Agreement shall survive the Closing and
        the completion of the Transactions.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">10.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All representations and warranties contained
        in this Agreement shall survive until the first anniversary of the Closing
        Date, except for the representations and warranties:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">10.2.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;concerning environmental matters set out
        in section 5.16, which shall survive until the fifth anniversary of the
        Closing Date; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">10.2.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;made in respect of any particular Person
        relating to a particular Tax in respect of a particular event or taxation
        year, including those set out in section 5.17, which shall survive for
        a period of 90 days after the date the relevant Governmental Authority
        shall</font> </div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp; </p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 42 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">no
        longer be entitled to assess or reassess liability for that particular
        Tax against the Person to or in respect of whom such representations and
        warranties are made (or against a non-Arm&#146;s Length Person who is
        liable for the particular Tax) in respect of any such event or taxation
        year, having regard, without limitation, to any waivers given by that
        Person in respect of any taxation year.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">10.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the limitations set out
        in section 10.2.2, any Claim which is based on representations and warranties
        set out in sections 3.1, 3.2, 4.1, 5.2, 5.3, 6.1 or 7.4 or on an intentional
        misrepresentation or fraud, may be brought at any time.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp; </P>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  11</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>COVENANTS
  OF THE PARTIES</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>11.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Positive
      Covenants </b></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
  than as contemplated by or permitted under this Agreement or as otherwise agreed
  by all of the Parties in writing, at all times prior to the Closing Date, the
  Corporation shall:</font> </p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.1.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;permit any of the other Parties and their
        respective representatives, without interference to the ordinary conduct
        of business of the Corporation and its Subsidiaries, to have access during
        normal business hours to the Books and Records and the properties and
        assets used by the Corporation and its Subsidiaries and to management
        of the Corporation and its Subsidiaries, in order to enable confirmation
        of the matters warranted in Article 3, Article 4 and Article 5 as they
        relate to the Corporation and its Subsidiaries, provided that the Corporation
        and its Subsidiaries shall not be required to disclose any information
        to any of the other Parties where prohibited by any Laws or agreement.
        If any consent of any Person or Governmental Authority is required to
        permit the Corporation or any of its Subsidiaries to release any information
        to the Purchasers, the Corporation shall make commercially reasonable
        efforts to obtain, or to cause to be obtained, such consent as soon as
        possible but shall not be required to disclose such information prior
        to receipt of such consent;</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.1.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;conduct the business of the Corporation
        and its Subsidiaries in all material respects in the ordinary course of
        business on a basis consistent with past practice;</font></div></td>
  </tr>
</table>
<p align="justify">&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 43 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.1.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;maintain all of the assets of the Corporation
        and its Subsidiaries in good condition and maintain insurance upon the
        assets of the Corporation and its Subsidiaries and make arrangements for
        replacement insurance to take effect following Closing given that the
        BCE umbrella insurance policies will cease to apply after the Share Purchase
        Transactions;</font> <font size="2" face="Arial, Helvetica, sans-serif"><b>
        </b></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.1.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;maintain the Books and Records in the ordinary
        course of business on a basis consistent with past practice; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.1.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;refrain from taking any actions that would
        cause the representations and warranties of the Corporation in Article
        3, Article 4 and Article 5 to be untrue or incorrect at the Closing Time
        except to the extent such arise from:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">11.1.5.1
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;actions contemplated by or permitted under
      this Agreement; or</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.1.5.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the operation of the business of the Corporation
        and its Subsidiaries in all material respects in the ordinary course of
        business on a basis consistent with past practice.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>11.2</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b> Commercial
      Arrangements</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">11.2.1
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon the execution of this Agreement, the
      Corporation and BCE shall execute the Commercial Arrangements Framework
      Agreement and deliver executed copies to each of the other Parties.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">11.2.2
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If this Agreement is terminated in accordance
      with Article 12 or section 15.1, then the Corporation and BCE shall terminate
      the Commercial Arrangements Framework Agreement.</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>11.3</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b> Agreement
      Regarding Names</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.3.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At or prior to the Closing Time, BCE shall
        cause Bell Canada to, and the Corporation shall, execute, and deliver
        executed copies to each of the other Parties of an amendment to the trade-mark
        license agreement between Bell Canada and the Corporation, dated January
        9, 2001, regarding the use of the &#147;Bell Globemedia&#148; names and
        related marks, logos and domain names including the &#147;bellglobemedia.com&#148;
        domain name (the <b>&#147;Bell Trade-marks License&#148;</b>) to limit
        the term of such license to a 6-month transitional period following the
        Closing Date and to make certain other amendments thereto as are more
        particularly described therein, in a form acceptable to</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 44 -</font>
</P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">the
        Parties, each acting reasonably. Similar amendments shall also be made
        to each other similar trade-mark license agreement between Bell Canada
        and certain of the Corporation&#146;s Subsidiaries and other investee
        companies, dated with their respective dates.<b> </b></font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.3.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At or prior to the Closing Time, BCE shall
        cause Bell Canada:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">11.3.2.1
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to withdraw its existing trade-mark registrations
      for all of its &#147;Bell Globemedia&#148; names, and related marks, logos
      and domain names, from the Canadian Intellectual Property Office; and</font>
    </td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">11.3.2.2
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to covenant not to create, use, exploit, license
      or otherwise deal with any name that includes the word &#147;Globemedia&#148;
      or any derivative thereof, including not opposing or interfering with any
      attempt by the Corporation or an associated company to register same, or
      to authorize, consent to or condone same, except as may be agreed in advance
      and in writing by the Corporation.</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Notwithstanding
        the foregoing, the Corporation agrees that Bell Canada, BCE or their affiliates,
        shall be licensed and entitled to retain and use the &#147;Bell Globemedia&#148;
        names, and related marks, logos and domain names, during a transitional
        period of 6-months immediately following the Closing Date, or on archival
        materials or as may be legally required or in accordance with prudent
        document retention practices. For greater certainty, nothing in this Agreement,
        in the Bell Trademarks License or similar trade-mark license agreements
        between Bell Canada and certain of the Corporation&#146;s Subsidiaries
        and other investee companies, shall interfere, conflict, prohibit or otherwise
        affect, directly or indirectly, Bell Canada&#146;s full and exclusive
        rights to use, exploit, license or otherwise deal with its &#147;Bell&#148;
        names, and related marks, logos and domain names which do not include
        the word &#147;Globemedia&#148;.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td><font size="2" face="Arial, Helvetica, sans-serif"><b>11.4</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b> CRTC
      Matters</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.4.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall, as soon as reasonably
        practicable, prepare and file the CRTC Application. Each of the Parties
        shall at all times cooperate with each other with respect to the CRTC
        Application, provided that the Corporation shall prepare and have control
        over the CRTC Application, including the presentation of the CRTC Application
        at any public hearing held to consider it.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 45 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.4.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall consult with, and
        consider in good faith any suggestions made by, the other Parties, with
        respect to the documentation relating to the CRTC Application. Each other
        Party shall promptly furnish to the Corporation or its counsel such information
        and assistance as the Corporation may reasonably request in order to prepare
        the documentation relating to the CRTC Application.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.4.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall diligently pursue
        the CRTC Approval on the terms set forth in the CRTC Application which
        shall be consistent with the terms of this Agreement. The Corporation
        shall use commercially reasonable efforts to allow BCE to participate
        in any discussion with the CRTC regarding the Commercial Arrangements
        Framework Agreement. The Corporation shall request that the CRTC Application
        be processed by the CRTC on an expedited basis and, to the extent that
        a public hearing is held, the Corporation shall request the earliest possible
        hearing date for the consideration of the CRTC Application.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.4.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall inform the other Parties
        or their respective counsel on a regular basis as to the status of the
        CRTC&#146;s processing of the CRTC Application and shall immediately provide
        each of the other Parties or their respective counsel with copies of any
        correspondence from or to the CRTC.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.4.5
        &nbsp;&nbsp;&nbsp;&nbsp;Each of the Parties shall immediately upon receipt
        by any one of them of any notice, request or correspondence concerning
        the CRTC Application from the CRTC (a &#147;<b>CRTC Request</b>&#148;),
        provide a copy of such CRTC Request to each of the other Parties. The
        Parties shall promptly furnish to the CRTC any additional information
        required or reasonably requested by the CRTC. No later than five Business
        Days prior to any date upon which a filing, submission or response (a
        &#147;<b>CRTC Submission</b>&#148;) is required pursuant to any CRTC Request
        or, where less than five Business Days&#146; notice of the requirement
        or opportunity for such CRTC Submission is given, as soon as reasonably
        practicable, the Party making the CRTC Submission shall provide a copy
        of any proposed CRTC Submission to each of the other Parties, and shall
        consult with such Parties as to the content of the CRTC Submission and
        shall consider in good faith any suggestions made by the other Parties
        concerning such CRTC Submission. The Parties agree that any such CRTC
        Submission shall be consistent with their objective of obtaining CRTC
        Approval.</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp; </P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 46 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>11.5</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b>Competition
      Act Matters</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.5.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall, as soon as reasonably
        practicable, prepare and file with the Commissioner an application for
        an ARC pursuant to section 102 of the Competition Act in respect of the
        transactions contemplated by this Agreement, together with a request that
        a &#147;no-action&#148; letter be issued if an ARC is not issued. Each
        Party shall promptly furnish to the Corporation or its counsel such information
        and assistance as the Corporation may reasonably request in order to prepare
        such application. The Corporation shall consult with, and consider in
        good faith any suggestions made by, the other Parties with respect to
        the ARC application.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.5.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, at any time after the ARC application
        has been submitted to the Commissioner, the Corporation determines that
        neither an ARC nor a waiver under section 113(c) of the Competition Act
        will be issued by the Commissioner, each of Woodbridge Parent and the
        Corporation shall, as soon as practicable, make a short-form pre-merger
        notification filing (unless the Commissioner requests a long-form filing,
        in which case they shall make a long-form filing instead of or in addition
        to a short-form filing) in respect of the Woodbridge Share Purchase.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.5.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall diligently pursue
        Competition Act Approval. The Corporation shall inform the other Parties
        or their counsel on a regular basis as to the status of the Commissioner&#146;s
        consideration of the ARC application and shall provide the other Parties
        or their counsel with copies of any material correspondence from or to
        the Commissioner. The Corporation shall use reasonable commercial efforts
        to allow competition counsel to the other Parties to participate in all
        material discussions with the Commissioner relating to the ARC application.
        For greater certainty, the Corporation shall use reasonable commercial
        efforts to allow BCE or its counsel to participate in any discussion with
        the Commissioner regarding the Commercial Arrangements Framework Agreement.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.5.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each of the Parties shall immediately upon
        receipt by any one of them of any material request for information or
        other communication from the Commissioner relating to the ARC application
        provide a copy (or advise the other parties or their counsel if such is
        not made in writing) of such request to each of the other Parties or their
        counsel. As soon as reasonably practicable thereafter, the Party to whom
        the request was made shall provide its proposed submission or response
        to each of the other Parties or their counsel, shall consult with the
        other Parties or their counsel as to the content of the proposed submission
        or response, and shall consider in good faith any suggestions made by
        the other Parties or their counsel concerning the proposed </font></div></td>
  </tr>
</table>
<P ALIGN="LEFT"><font size="2" face="Arial, Helvetica, sans-serif"><BR>
  </font></P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 47 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">submission
        or response, all with a view to promptly furnishing to the Commissioner
        the information so requested. The Parties agree that any such submission
        or response shall be consistent with their objective of obtaining Competition
        Act Approval.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.5.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, each Party
        reserves the right to limit or restrict the exchange of confidential information
        about such Party pursuant to this section (although, in such cases, external
        counsel shall be allowed access to such information where necessary in
        connection with the pursuit of the Competition Act Approval).</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>11.6</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b>League
      Approvals</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.6.1
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall, as soon as reasonably
        practicable, prepare and file with each League an application for League
        Approval in respect of the Share Purchase Transactions in accordance with
        the applicable League Letter. Each other Party shall promptly furnish
        to the Corporation such information and assistance as the Corporation
        may reasonably request in order to prepare such applications.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.6.2
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall consult with, and
        consider in good faith any suggestions made by the other Parties with
        respect to the documentation relating to the applications for the League
        Approvals. Each other Party shall promptly furnish to the Corporation
        such information and assistance as the Corporation may reasonably request
        in order to prepare the documentation relating to the applications for
        the League Approvals.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.6.3
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall diligently pursue
        the League Approvals on the terms set forth in the applications which
        shall be consistent with the terms of this Agreement.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.6.4
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Parties acknowledge that Teachers is
        the majority shareholder of MLSE and the process for pursuing the League
        Approvals will be conducted in accordance with the terms of any applicable
        agreements governing MLSE.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.6.5
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Corporation shall inform the other Parties
        on a regular basis as to the status of the League Approvals and shall
        provide each of the other Parties with copies of any correspondence from
        or to the Leagues.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.6.6
        &nbsp;&nbsp;&nbsp;&nbsp;Each of the Parties shall immediately upon receipt
        by any one of them of any notice, request or correspondence concerning
        a League Approval from a League (a &#147;<b>League Request</b>&#148;),</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 48 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">provide
        a copy of such League Request to each of the other Parties. The Parties
        shall promptly furnish to the Leagues any additional information required
        or reasonably requested in respect of the League Approvals. No later than
        five Business Days prior to any date upon which a filing, submission or
        response (a &#147;<b>League Submission</b>&#148;), is required pursuant
        to any League Request, or where less than five Business Days&#146; notice
        of the requirement or opportunity for such League Submission is given,
        as soon as reasonably practicable, the Party making the League Submission
        shall provide a copy of the proposed League Submission to each of the
        other Parties, and shall consult with such Parties as to the content of
        the League Submission and shall consider in good faith any suggestions
        made by the other Parties concerning such League Submission. The Parties
        agree that any such League Submission shall be consistent with their objective
        of obtaining the League Approvals.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.6.7
        &nbsp;&nbsp;&nbsp;&nbsp;In the event that a League determines not to provide
        a League Approval in respect of the relevant Transactions or has neither
        approved nor disapproved the relevant Transactions by the time the other
        consents or approvals that are Transaction Approvals are obtained, the
        Parties shall take all reasonable action as is necessary or desirable
        to effectuate the Transactions without such League Approval, including,
        as necessary, by the Corporation assigning its entire ownership interest
        in MLSE to a newly-formed single purpose entity (the &#147;<b>Transferee</b>&#148;)
        owned solely by BCE and Woodbridge as contemplated by and in accordance
        with the relevant League Letter. Any such assignment shall be made on
        fair and reasonable terms reflecting the Fair Market Value of the Corporation&#146;s
        interest in MLSE negotiated in good faith between BCE, Woodbridge and
        the Corporation, which terms shall require, among other things, that the
        Corporation shall continue to diligently pursue such League Approvals
        in respect of the relevant Transactions and that the Transferee shall
        assign such interest in MLSE back to the Corporation when such League
        Approval has been obtained at the same value it acquired such interest
        at.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>11.7</b></font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"><b>Transaction
      Approvals</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.7.1
        &nbsp;&nbsp;&nbsp;&nbsp;Without any limitation on the obligations set
        forth in section 11.4, section 11.5 and section 11.6, the Corporation
        shall diligently pursue all of the Transaction Approvals and the Parties
        shall use their respective commercially reasonable efforts to support
        the Corporation&#146;s pursuit of the Transaction Approvals and shall
        provide such assistance as is commercially reasonable to provide in order
        to obtain the Transaction Approvals, including providing to the Corporation
        all necessary information. No Party (other than the Corporation, as described
        below)</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 49 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">shall
        be obligated to make any payment to any Person or to pay any charge or
        fee or make or incur any additional payment, guarantee or financial contribution
        or arrangement or to institute legal, arbitration or other proceedings
        in connection therewith.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.7.2
        &nbsp;&nbsp;&nbsp;&nbsp;All costs and expenses incurred with respect to
        pursuing the Transaction Approvals shall be borne by the Corporation,
        other than costs and expenses of any advisors, including legal counsel,
        retained by the Purchasers or BCE, which shall be for the account of such
        Purchaser or BCE, as the case may be.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.7.3
        &nbsp;&nbsp;&nbsp;&nbsp;Torstar, Woodbridge Parent and the Corporation
        shall work co-operatively to obtain a waiver from Gesca Ltd. of its rights
        to acquire Bell Globemedia Publishing Inc.&#146;s partnership interest
        in Workopolis in the event that Bell Globemedia Publishing Inc. becomes
        subject to a change of control for the purposes of the Workopolis Partnership
        Agreement as a result of the transactions contemplated by this Agreement
        and upon obtaining such waiver Torstar shall, or shall cause its applicable
        Subsidiary to, waive its rights to acquire such partnership interest.
        In the event that Torstar, Woodbridge Parent and the Corporation are unable
        to obtain a waiver from Gesca Ltd. on terms satisfactory to each of them,
        each of such parties shall work cooperatively to pursue a transaction
        or series of transactions that would achieve the same economic and business
        result as obtaining the waiver from Gesca Ltd. (for example, Torstar exercising
        its right to acquire the partnership interest to hold it for the benefit
        of the Corporation with an agreement to transfer the partnership interest
        back to the Corporation when and if possible), provided that none of these
        parties shall be required to take any action that would have adverse consequences
        for it. In connection with obtaining the required waivers, each of Torstar,
        Woodbridge Parent and the Corporation shall pursue in good faith any consequential
        amendments to the Workopolis Partnership Agreement.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.7.4
        &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any other provision of this Agreement,
        if the condition in section 12.1.1 is not fulfilled solely as a result
        of the Torstar Share Purchase, each Party other than Torstar agrees to
        work together to identify a replacement for Torstar that is acceptable
        to all such Parties, acting reasonably, and thereafter to complete the
        transactions contemplated by this Agreement on the terms and conditions
        set forth in this Agreement. Each Party other than Torstar acknowledges
        and agrees that it will be necessary to enter into a new agreement substantially
        in the form of this Agreement to provide for a replacement for Torstar
        and agree to make such changes to the form of</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 50 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">the
        Agreement as are required to give effect to the replacement party. In
        these circumstances, Torstar agrees that it shall continue to be bound
        by section 11.7.3.</font></div></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>11.8</b></font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>Negative
        Covenants</b></font></div></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
  than as contemplated by or permitted under this Agreement and other than transactions
  solely between the Corporation and any Subsidiary or between any of its Subsidiaries,
  at any time prior to the Closing Date, without the prior written consent of
  the other Parties, the Corporation shall not, directly or indirectly:</font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.8.1
        &nbsp;&nbsp;&nbsp;&nbsp;take any initiative that would amount to a material
        change in the business of the Corporation and its Subsidiaries on a consolidated
        basis;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">11.8.2
      &nbsp;&nbsp;&nbsp;&nbsp;amend its articles, by-laws, constating documents
      or other organizational documents;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.8.3
        &nbsp;&nbsp;&nbsp;&nbsp;declare or pay any dividend or make any distribution,
        whether in cash, in stock or <i>in specie</i>, on any of its outstanding
        shares;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">11.8.4
      &nbsp;&nbsp;&nbsp;&nbsp;repurchase, redeem or otherwise acquire any of its
      securities;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">11.8.5
      &nbsp;&nbsp;&nbsp;&nbsp;issue, grant or sell any of its securities;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">11.8.6
      &nbsp;&nbsp;&nbsp;&nbsp;amalgamate, merge or combine with or into any other
      Person;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">11.8.7
      &nbsp;&nbsp;&nbsp;&nbsp;take or institute any proceedings for winding-up,
      reorganizing or dissolving;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.8.8
        &nbsp;&nbsp;&nbsp;&nbsp;purchase or acquire, in any single transaction
        or series of related transactions, assets or shares of, or other interests
        in, any other Person where the aggregate consideration payable pursuant
        to the transaction, including any indebtedness assumed, exceeds $250,000,000
        as of the effective date of the transaction (in the case of a series of
        related transactions, on the effective date of the first of such transactions);</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.8.9
        &nbsp;&nbsp;&nbsp;&nbsp;sell or dispose of, by conveyance, transfer, lease
        or otherwise, in any single transaction or series of related transactions,
        assets, including shares of, or other interests in, any of its Subsidiaries,
        where the aggregate consideration receivable pursuant to the transaction,
        including any indebtedness assumed, exceeds $250,000,000 as of the effective
        date of the transaction (in the case of a series of related transactions,
        on the effective date of the first of such transactions);</font></div></td>
  </tr>
</table>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 51 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.8.10
        &nbsp;&nbsp;&nbsp;&nbsp;enter into any joint venture or strategic alliance
        in any single transaction or series of related transactions that would
        reasonably be expected to account for more than $150,000,000 of the annual
        revenues of the Corporation and its Subsidiaries on a consolidated basis
        in the first full fiscal year immediately following the effective date
        of the transaction (in the case of a series of related transactions, in
        the first full fiscal year immediately following the effective date of
        the first of such transactions);</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.8.11
        &nbsp;&nbsp;&nbsp;&nbsp;enter into any non-Arm&#146;s Length transactions,
        except transactions entered into in the ordinary course of business on
        terms no less favourable to the Corporation than are available from an
        Arm&#146;s Length party;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">11.8.12
        &nbsp;&nbsp;&nbsp;&nbsp;do indirectly, including through any of its Subsidiaries,
        anything which would not be permitted to be done directly pursuant to
        this section 11.8; or</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">11.8.13 &nbsp;&nbsp;&nbsp;&nbsp;make
      any commitment or agreement to do any of the foregoing.</font></td>
  </tr>
</table>
<br>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  12</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>CONDITIONS
  PRECEDENT</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  obligation of any Party to complete or cause to be completed any of the Share
  Purchase Transactions shall be subject to the satisfaction of, or compliance
  with, at or before the Closing Time, each of the following conditions precedent
  that are expressed for the benefit of such Party. If any of the conditions described
  in this Article 12 has not been fulfilled by the Closing Time, any Party that
  has the benefit of such unfulfilled condition may terminate this Agreement by
  notice in writing to all of the other Parties, in which event all of the Parties
  shall be released from their obligations under this Agreement (other than the
  obligations contained in Article 14 and section 16.2 and section 16.3 which
  shall survive the termination). However, any Party may agree in writing to waive
  compliance with any condition for its benefit in whole or in part, without prejudice
  to their right to recover damages for the breach of any representation, warranty,
  covenant or condition for its benefit contained in this Agreement.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>12.1</b></font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>Conditions
        for the Benefit of Parties</b></font></div></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  following shall be mutual conditions for the benefit of each of the Parties
  other than the Corporation to its obligation to complete the closing of the
  Share Purchase Transactions to which it is a party: </font></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 52 -</font></P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">12.1.1
      &nbsp;&nbsp;&nbsp;&nbsp;<b>Competition Act Approval</b> &#151; Competition
      Act Approval shall have been obtained;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">12.1.2
      &nbsp;&nbsp;&nbsp;&nbsp;<strong>CRTC Approval</strong> &#151; CRTC Approval
      shall have been obtained;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.3
        &nbsp;&nbsp;&nbsp;&nbsp;<b>Representations and Warranties</b> &#151; The
        representations and warranties in this Agreement given to the Party by
        each other Party shall be true and correct in all material respects (provided
        that those representations and warranties that are qualified by materiality
        qualifiers, to the extent so qualified, shall be true and correct) at
        the Closing Time with the same force and effect as if made at the Closing
        Time (to the extent that any such representations and warranties, by their
        terms, are made expressly as of the date hereof or another date, as of
        such other date and except with respect to the representations and warranties
        set forth in Article 5 to the extent such representations and warranties
        are affected by any matter arising after the date of this Agreement);
        and each Party shall have received a certificate from each other Party
        from which it receives representations and warranties pursuant to this
        Agreement confirming the foregoing, signed for and on behalf of the Party
        by a senior officer of the Party; the Corporation shall have the right
        from time to time prior to the Closing Time to supplement or amend its
        written disclosure relating to the representations and warranties set
        forth in Article 5 in respect of any matter arising after the date of
        this Agreement that, if existing at the date of this Agreement, would
        have been required to be disclosed by the Corporation in writing on or
        prior to the date hereof to make the applicable representation and warranty
        true and correct; any such supplement or amendment, upon written notice
        thereof shall be effective to modify this Agreement and the Corporation&#146;s
        previously provided written disclosure, to qualify the representations
        and warranties in Article 5 and to cure any misrepresentation or breach
        of representation and warranty that otherwise might have existed under
        this Agreement for the purpose of the determination of the satisfaction
        of the condition of Closing set forth in this section 12.1.3 (for greater
        certainty, the Parties acknowledge that any such supplement or amendment
        shall not affect the ability of Teachers and Torstar to pursue a claim
        for misrepresentation or breach of representation and warranty as at the
        date of this Agreement and the Parties further acknowledge that any supplement
        or amendment shall not affect the covenants of the Parties set forth in
        Article 11);</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.4
        &nbsp;&nbsp;&nbsp;&nbsp;<b>Performance of Obligations</b> &#151; Each
        other Party shall have performed in all material respects all of its obligations
        arising under this Agreement which are to be performed at or before the
        Closing Time for the benefit of the Party, provided that where covenants
        are for the benefit of the Corporation, such covenants shall be deemed
        to be for the benefit of each other Party; and each</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 53 -</font></P>
<P ALIGN="LEFT">&nbsp; </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Party
        shall have received a certificate from each other Party from which it
        receives a covenant pursuant to this Agreement confirming the foregoing,
        signed for and on behalf of the Party by a senior officer of the Party;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.5
        &nbsp;&nbsp;&nbsp;&nbsp;<b>No Change in Law</b> &#151; No legislation
        (whether by statute, regulation, order-in-council, notice of ways and
        means motion, by-law or otherwise) shall have been enacted, introduced
        or tabled which restricts or prohibits any of the Share Purchase Transactions
        in any material respect;</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.6
        &nbsp;&nbsp;&nbsp;&nbsp;<b>No Action to Restrain </b>&#151; There shall
        be no injunction or restraining order issued preventing, and no pending
        or threatened claim, or proceeding, judicial or administrative or investigation
        against any Party by any Governmental Authority, for the purpose of enjoining
        or preventing the consummation of the Share Purchase Transactions or otherwise
        claiming that this Agreement or the consummation of the Share Purchase
        Transactions is improper or would give rise to proceedings under any Laws;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.7
        &nbsp;&nbsp;&nbsp;&nbsp;<strong>Other Share Purchase Transactions</strong>
        - Each other Share Purchase Transaction shall be concurrently completed;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">12.1.8
      &nbsp;&nbsp;&nbsp;&nbsp;<strong>Legal Opinions</strong> -</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.8.1
        &nbsp;&nbsp;&nbsp;&nbsp;Each of BCE, Woodbridge, Teachers and Torstar
        shall have received a legal opinion in a form satisfactory to them, each
        acting reasonably, from counsel to the Corporation;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.8.2
        &nbsp;&nbsp;&nbsp;&nbsp;Each of the Corporation, Woodbridge, Teachers
        and Torstar shall have received a legal opinion in a form satisfactory
        to them, each acting reasonably, from counsel to BCE;</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.8.3
        &nbsp;&nbsp;&nbsp;&nbsp;Each of the Corporation, BCE, Teachers and Torstar
        shall have received a legal opinion in a form satisfactory to them, each
        acting reasonably, from counsel to Woodbridge;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.8.4
        &nbsp;&nbsp;&nbsp;&nbsp;Each of the Corporation, BCE, Woodbridge and Torstar
        shall have received a legal opinion in a form satisfactory to them, each
        acting reasonably, from counsel to Teachers;</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 54 -</font></P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"> </FONT> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.8.5
        &nbsp;&nbsp;&nbsp;&nbsp;Each of the Corporation, BCE, Woodbridge and Teachers
        shall have received a legal opinion in a form satisfactory to them, each
        acting reasonably, from counsel to Torstar; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">12.1.9
        &nbsp;&nbsp;&nbsp;&nbsp;<b>Closing Documents and Proceedings </b>&#151;
        All documents relating to the authorization and completion of the transactions
        contemplated by this Agreement and all actions taken at or prior to the
        Closing Time in connection with the performance by a Party of its obligations
        under this Agreement shall be satisfactory to each other Party and each
        Party shall have received copies of all such documents and evidence that
        all such actions and proceedings have been taken as it may reasonably
        request.</font></div></td>
  </tr>
</table>
<P ALIGN="center"><br>
  <FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE 13</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>INDEMNIFICATION</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>13.1</b></font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><strong>Indemnifications
        for Breaches of Covenants and Warranty, etc.</strong></font></div></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
  the context requires, any Party in this section 13.1 covenanting and agreeing
  to indemnify another Party is referred to as an &#147;<B>Indemnifying Party</B>&#148;
  and any Party so indemnified is referred to as an &#147;<B>Indemnified Party</B>&#148;.
  Subject to section 1.5, each Party shall severally, and not jointly and severally,
  indemnify and save harmless, each other Party, on an after-Tax basis to the
  Indemnified Party, effective as and from the Closing Time, from and against
  all Claims which may be made or brought against the Indemnified Party or which
  the Indemnified Party may suffer or incur, directly or indirectly as a result
  of or in connection with any non-fulfilment of any covenant or agreement on
  the part of the Indemnifying Party under this Agreement or any incorrectness
  in or breach of any representation or warranty of the Indemnifying Party contained
  in this Agreement or in any certificate or other document furnished by the Indemnifying
  Party pursuant to this Agreement.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>13.2</b></font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif"><b>Limitations
        &#150; All Parties</b></font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">The obligations of
      indemnification in respect of such Claims described in section 13.1 shall
      be subject to:</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.2.1
        &nbsp;&nbsp;&nbsp;&nbsp;the limitation that no claim for indemnity in
        respect of the breach of any representation or warranty contained in this
        Agreement may be made unless notice of such claim has been given</font></div></td>
  </tr>
</table>
<p>&nbsp; </p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 55 - </font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">to
        the party against whom such claim is made prior to the expiry of the survival
        period applicable to such representation and warranty pursuant to section
        10.2;</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.2.2
        &nbsp;&nbsp;&nbsp;&nbsp;the requirement that the Indemnifying Party shall,
        in respect of any Claim made by any third Person, be afforded an opportunity
        at its sole expense to resist, defend and compromise such Claim, as provided
        in section 13.3;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.2.3
        &nbsp;&nbsp;&nbsp;&nbsp;the limitation that, for Claims made in connection
        with any representation or warranty, the Indemnifying Party shall not
        be required to pay any such amount until the aggregate of such Claims
        exceeds $4,000,000 and upon the aggregate of such Claims exceeding $4,000,000
        the Indemnifying Party shall be required to pay the amount owing in respect
        of all of such Claims, excluding the first $4,000,000;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.2.4
        &nbsp;&nbsp;&nbsp;&nbsp;the limitation that the Indemnifying Party shall
        not be liable for any special, indirect, consequential, punitive or aggravated
        damages; and</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.2.5
        &nbsp;&nbsp;&nbsp;&nbsp;the limitation that, for Claims made or brought
        against the Corporation as a result of or in connection with any incorrectness
        in or breach of any representation or warranty of the Corporation contained
        in Article 5 or in any certificate or other document furnished by the
        Corporation pursuant to this Agreement with respect to such representations
        and warranties, the Corporation shall not be required to pay Teachers
        or Torstar any amount greater than 25% of the Teachers Share Purchase
        Price or 25% of the Torstar Share Purchase Price, as applicable, in respect
        of any such Claims.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>13.3</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Indemnification
      Procedures for Third Person Claims</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.3.1
        &nbsp;&nbsp;&nbsp;&nbsp;In the case of Claims made by a third Person with
        respect to which indemnification is sought, the Indemnified Party shall
        give prompt written notice, and in any event within 20 days, to the Indemnifying
        Party of any such Claims made upon it. In the event of a failure to give
        such notice, such failure shall not preclude the Indemnified Party from
        obtaining such indemnification but its right to indemnification may be
        reduced to the extent that such delay prejudiced the defence of the Claim
        or increased the amount of liability or cost of defence.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.3.2
        &nbsp;&nbsp;&nbsp;&nbsp;The Indemnifying Party shall have the right, by
        notice to the Indemnified Party given not later than 20 days after receipt
        of the notice described in section 13.3.1, to assume the control of the
        defence, compromise or settlement of the Claim, provided that such assumption
        shall, by its terms, be without cost to the Indemnified Party and provided
        the Indemnifying Party acknowledges in</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 56 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">writing
        its obligation to indemnify the Indemnified Party in accordance with and
        subject to the terms contained in this Article 13 in respect of that Claim.</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.3.3
        &nbsp;&nbsp;&nbsp;&nbsp;Upon the assumption of control of any Claim by
        the Indemnifying Party as set out in section 13.3.2, the Indemnifying
        Party shall diligently proceed with the defence, compromise or settlement
        of the Claim at its sole expense, including if necessary, employment of
        counsel reasonably satisfactory to the Indemnified Party and, in connection
        therewith, the Indemnified Party shall cooperate fully, but at the expense
        of the Indemnifying Party with respect to any out-of-pocket expenses incurred,
        to make available to the Indemnifying Party all pertinent information
        and witnesses under the Indemnified Party&#146;s control, make such assignments
        and take such other steps as in the opinion of counsel for the Indemnifying
        Party are reasonably necessary to enable the Indemnifying Party to conduct
        such defence. The Indemnified Party shall also have the right to participate
        in the negotiation, settlement or defence of any Claim at its own expense.
        If, following the assumption of control of any Claim as aforesaid, the
        Indemnifying Party shall fail to diligently proceed with the defence,
        compromise or settlement of the claim at its sole expense as aforesaid,
        the Indemnified Party may do so, in which event the provisions of section
        13.3.5 shall apply to such Claim.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.3.4
        &nbsp;&nbsp;&nbsp;&nbsp;If the Indemnifying Party assumes the defence,
        compromise or settlement of a Claim as set out in section 13.3.2, the
        final determination of any Claim pursuant to this section, including all
        related costs and expenses, will be binding and conclusive upon the Parties
        as to the validity or invalidity, as the case may be, of such Claim against
        the Indemnifying Party.</font> </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">13.3.5
        &nbsp;&nbsp;&nbsp;&nbsp;If the Indemnifying Party does not assume control
        of a Claim as permitted in section 13.3.2, the Indemnified Party shall
        be entitled to make such settlement of the Claim as in its sole discretion
        may appear advisable, and such settlement or any other final determination
        of the Claim shall be binding upon the Indemnifying Party provided that
        the Indemnifying Party shall continue to be entitled to dispute its liability
        for, but not its amount or terms of settlement of, such Claim.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>13.4</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>BCE
      Indemnification of the Corporation</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCE
  shall indemnify and save harmless the Corporation, on an after-Tax basis, effective
  as and from the Closing Time, from and against all Claims which may be made
  or brought against the Corporation as a result of or in connection with any
  incorrectness in or breach of any representation or </font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 57 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">warranty
  of the Corporation contained in Article 5 or in any certificate or other document
  furnished by the Corporation pursuant to this Agreement with respect to such
  representations and warranties, other than Claims as a result of or in connection
  with any Material Contract not provided to BCE by the Corporation. Any Material
  Contract not provided to BCE by the Corporation shall be identified as a non-disclosed
  Material Contract in the Corporation&#146;s written disclosure on or prior to
  the date hereof. The indemnification procedures set forth in section 13.3 shall
  apply, <I>mutatis mutandis</I>, to claims for indemnification made by the Corporation
  against BCE pursuant to this section.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>13.5</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Indemnification
      Claims</B></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  parties agree that this Article 13 sets out the sole and exclusive manner by
  which any Party may seek monetary compensation from any other Party for any
  matter in respect of which such Party may make a Claim under this Agreement.</font><font size="2" face="Arial, Helvetica, sans-serif"><br>
  </font> </p>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  14</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>DISPUTE
  RESOLUTION AND ARBITRATION</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>14.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b> Dispute
      Resolution and Arbitration Procedure</b></font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">14.1.1
        &nbsp;&nbsp;&nbsp;&nbsp;All disputes, disagreements, controversies, questions
        or claims arising out of or relating to this Agreement and, except as
        expressly provided therein, all other agreements entered into pursuant
        to the terms of this Agreement, including, without limitation, with respect
        to its execution, validity, application, interpretation, performance,
        breach, termination or enforcement (&#147;<b>Disputes</b>&#148;), shall
        be promptly brought to the attention of the Chief Executive Officer of
        the Corporation, the Chief Executive Officer of BCE, the President of
        Woodbridge Parent, a Senior Vice-President, Teachers&#146; Private Capital
        of Teachers and the Chief Executive Officer of Torstar (each an &#147;<b>Affected
        Principal</b>&#148; and, collectively, the &#147;<b>Affected </b> <strong>Principals</strong>&#148;),
        in each case, to the extent such Party is a party to the Dispute, who
        shall discuss the matter in good faith and try to resolve the Dispute.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">14.1.2
        &nbsp;&nbsp;&nbsp;&nbsp;If the Affected Principals are unable to agree
        within 10 Business Days after receipt of notice of the Dispute or within
        such shorter time or additional time as they may determine jointly in
        writing, the matter shall ultimately be determined in accordance with
        Schedule 14.1, which sets out the sole and exclusive procedure for the
        resolution of Disputes. The resolution of Disputes pursuant to the terms
        of Schedule 14.1 shall be final and binding upon the Parties, and there
        shall</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 58 -</font>
</p>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">be
        no appeal therefrom, including, without limitation, any appeal to a court
        of law on a question of law, a question of fact, or question of mixed
        fact and law. For greater certainty, the application of subsection 7(2)
        of the <i>Arbitration Act, 1991</i> (Ontario) is expressly excluded.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">14.1.3
        &nbsp;&nbsp;&nbsp;&nbsp;If the Affected Principals are able to resolve
        the Dispute in accordance with section 14.1.1 or a Dispute is resolved
        in accordance with Schedule 14.1, each of the Parties shall cause such
        meetings to be held, votes to be cast, resolutions to be passed, documents
        to be executed and all other things and acts to be done to ensure any
        action resolved to be taken is taken to the fullest extent possible.</font>
      </div></td>
  </tr>
</table>
<br>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  15</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>TERMINATION</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>15.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Closing
      Time</b></font></td>
  </tr>
</table>
<p align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
  the Parties otherwise agree in writing, this Agreement shall terminate if the
  Closing Time has not occurred before 5:00 p.m. (Toronto time) on the date that
  is 12 months after the date of this Agreement.</font><font size="2" face="Arial, Helvetica, sans-serif"><br>
  </font> </p>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>ARTICLE
  16</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>GENERAL</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.1</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Place
      of Closing</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Closing shall take place at the Closing Time at the offices of Torys LLP located
  at 79 Wellington Street West, TD Centre, Toronto, Ontario or at such other place
  as may be agreed upon by the Parties.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.2</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Expenses</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except
  as otherwise provided in this Agreement, all costs and expenses (including the
  fees and disbursements of legal counsel and other advisors) incurred in connection
  with this Agreement and the transactions contemplated hereby shall be paid by
  the Party incurring such costs and expenses.</font> </P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 59 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.3</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Public
      Notices</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
  public notices to third Persons and all other publicity concerning the Transactions
  shall be jointly planned and coordinated by the Parties and no Party shall act
  unilaterally in this regard without the prior approval of the other such Parties,
  such approval not to be unreasonably withheld, except where required to do so
  by Law or by the applicable regulations or policies of any provincial or Canadian
  or other regulatory agency of competent jurisdiction or any stock exchange,
  provided that if so required the Party required shall advise the other Parties
  as promptly as possible and in any event prior to the giving of any notice of
  the timing and content of such required notice. The Corporation hereby acknowledges
  that Torstar is a public company and agrees that to the extent any provision
  of the nondisclosure agreement between the Corporation and Torstar is inconsistent
  with the preceding sentence, such provision of the non-disclosure agreement
  shall be interpreted to give effect to the preceding sentence.</font> </P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.4</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Notices</b></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
  notice or other communication required or permitted to be given hereunder shall
  be in writing and shall be given by prepaid first-class mail, by facsimile or
  other means of electronic communication or by delivery as hereafter provided.
  Any such notice or other communication, if mailed by prepaid first-class mail
  at any time other than during a general discontinuance of postal service due
  to strike, lockout or otherwise, shall be deemed to have been received on the
  fourth Business Day after the post-marked date thereof, or if sent by facsimile
  or other means of electronic communication, shall be deemed to have been received
  on the Business Day following the sending, or if delivered by hand shall be
  deemed to have been received at the time it is delivered to the applicable address
  noted below either to the individual designated below or to an individual at
  such address having apparent authority to accept deliveries on behalf of the
  addressee. Notice of change of address shall also be governed by this section.
  In the event of a general discontinuance of postal service due to strike, lock-out
  or otherwise, notices or other communications shall be delivered by hand or
  sent by facsimile or other means of electronic communication and shall be deemed
  to have been received in accordance with this section. Notices and other communications
  shall be addressed as follows:</font> </P>
<p><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if
  to the Corporation:</font></p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 60 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Bell Globemedia
      Inc.<br>
      9 Channel Nine Court<br>
      Scarborough, Ontario M1S 4B5 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      President and Chief Executive Officer<br>
      Fax No.: (416) 332-5178 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">With a
      copy to:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> Bell Globemedia
      Inc. <br>
      9 Channel Nine Court <br>
      Scarborough, Ontario M1S 4B5 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      Corporate Secretary<br>
      Fax No.: (416) 332-4281 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">with a
      copy to the Corporation's counsel at: </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Torys LLP<br>
      Suite 3000<br>
      79 Wellington Street West<br>
      Box 270, Box 270, Toronto Dominion Centre<br>
      Toronto, Ontario M5K 1N2 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;
      </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      Michael J. Siltala <br>
      Fax No.: (416) 865-7380 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">if to BCE:
      </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;
      </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">BCE Inc.
      <br>
      1000, rue de la Gaucheti&#232;re Ouest <br>
      Bureau 3700 <br>
      Montreal, Qu&#233;bec H3B 4L1 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      Chief Legal Officer <br>
      Fax No.: (514) 870-4953 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">with a
      copy to: </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">BCE Inc.
      <br>
      1000, rue de la Gaucheti&#232;re Ouest <br>
      Bureau 4100 <br>
      Montreal, Qu&#233;bec H3B 5H8 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      Corporate Secretary <br>
      Fax No.: (514) 786-3801 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">if to Woodbridge
      Parent or 1565117:</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 61 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">The Woodbridge
      Company Limited <br>
      65 Queen Street West, Suite 2400 <br>
      Toronto, Ontario M5H 2M5</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      President <br>
      Fax No.: (416) 364-0754</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">with a
      copy Woodbridge's counsel:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Torys LLP<br>
      Suite 3000<br>
      79 Wellington Street West<br>
      Box 270, Toronto Dominion Centre<br>
      Toronto, Ontario M5K 1N2</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      Michael J. Siltala <br>
      Fax No.: (416) 865-7380 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">if to Teachers:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">5650 Yonge
      Street<br>
      North York, Ontario<br>
      M2M 4H5</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      Senior Vice-President, Teachers' Private Capital <br>
      Fax No.: (416) 730-5082 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">with a
      copy to:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">5650 Yonge
      Street<br>
      North York, Ontario<br>
      M2M 4H5</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      General Counsel<br>
      Fax No.: (416) 730-3771</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">with a
      copy to Teacher's counsel:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><p><font size="2" face="Arial, Helvetica, sans-serif">Stikeman
        Elliott LLP<br>
        5300 Commerce Court West<br>
        </font><font size="2" face="Arial, Helvetica, sans-serif">199 Bay Street<br>
        Toronto, Ontario<br>
        M5L 1B9</font></p></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      Jeffrey Singer<br>
      Fax No.: (416) 947-0866</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">if to Torstar:</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 62 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">One Yonge
      Street<br>
      Toronto, Ontario<br>
      M5E 1P9 </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Attention:
      President and Chief Executive Officer<br>
      Fax No.: (416) 814-2789</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">with a
      copy to Torstar&#146;s counsel:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">Osler,
      Hoskin &amp; Harcourt LLP<br>
      P.O. Box 50, 1 First Canadian Place<br>
      Toronto, Ontario<br>
      M5X 1B8</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Attention: Terrence
      R. Burgoyne<br>
      Fax No.: (416) 862-6666</font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
  the foregoing, any notice or other communication required or permitted to be
  given by any Party pursuant to or in connection with the dispute resolution
  and arbitration procedures contained in Schedule 14.1 hereto may only be delivered
  by hand.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  failure to send or deliver a copy of a notice or other communication to the
  referred to counsel, as the case may be, shall not invalidate any notice given
  under this section.</font></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.5</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><b>Assignment</b></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">16.5.1
        &nbsp;&nbsp;&nbsp;&nbsp;Neither this Agreement nor any benefits or burdens
        under this Agreement shall be assignable by any Party without the prior
        written consent of each of the other Parties.</font></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">16.5.2
        &nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, a Purchaser may,
        at any time prior to the Closing Date, assign its rights and benefits
        to any wholly-owned Subsidiary of the Purchaser that delivers to each
        Party an instrument in writing executed by the assignee confirming that
        it is bound by and shall perform all of the obligations of the Purchaser
        under this Agreement as if it were an original signatory; provided that
        no assignment by a Purchaser shall relieve the Purchaser of its obligations
        under this Agreement. In the event of an assignment contemplated above,
        any references to the Purchaser assigning such rights and benefits shall
        be deemed to include the assignee.</font> </div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">16.5.3
        &nbsp;&nbsp;&nbsp;&nbsp;Subject to the foregoing, this Agreement shall
        enure to the benefit of and be binding upon the Parties and their respective
        successors resulting from any amalgamation, merger, arrangement or other
        reorganization of such party or continuance of such party under the laws
        of another jurisdiction, and permitted assigns.</font></div></td>
  </tr>
</table>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 63 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.6</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Further
      Assurances</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Parties shall, with reasonable diligence, do all such things and provide all
  such reasonable assurances as may be required to consummate the transactions
  contemplated by this Agreement, and each Party shall provide such further documents
  or instruments required by any other Party as may be reasonably necessary or
  desirable to effect the purpose of this Agreement and carry out its provisions,
  whether before or after the Closing.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.7</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>No Offering
      Memorandum</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
  Purchaser hereby acknowledges and agrees with each other Party that the Purchaser
  has not received or been provided with any offering memorandum or any other
  document purporting to describe the business and affairs of the Corporation
  that has been prepared primarily for delivery to and review by prospective purchasers
  so as to assist them to make an investment decision in respect of the Purchased
  Shares.</font> </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.8</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Language</B></font></td>
  </tr>
</table>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Parties confirm that it is their wish that this Agreement, as well as any other
  documents relating to this Agreement, including notices, schedules and authorizations,
  have been and shall be drawn up in the English language only. Les parties aux
  pr&eacute;sentes confirment leur volont&eacute; que cette convention, de m&ecirc;me
  que tous les documents, y compris tous avis, c&eacute;dules et autorisations
  s&#146;y rattachant, soient r&eacute;dig&eacute;s en anglais seulement.</font>
</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><b>16.9</b></font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif"><B>Counterparts</B></font></td>
  </tr>
</table>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
  Agreement may be signed in counterparts and each such counterpart shall constitute
  an original document and such counterparts, taken together, shall constitute
  one and the same instrument. </font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="center"><font size="2" face="Arial, Helvetica, sans-serif">- 64 -</font></P>
<P ALIGN="justify">&nbsp;</P>
<P ALIGN="justify"><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN
  WITNESS OF WHICH </B>the Parties have duly executed this Agreement.</font> </P>
<P ALIGN="justify">&nbsp;</P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><p><font size="2" face="Arial, Helvetica, sans-serif"><b>BELL GLOBEMEDIA
        INC.</b></font></p>
      <p>&nbsp;</p></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">By:</font></div></td>
    <td width="45%"><font size="2" face="Arial, Helvetica, sans-serif">(signed)<em>
      Ivan Fecan</em></font></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><HR NOSHADE COLOR="Black" SIZE="1"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Name: Ivan Fecan<br>
      Title: President and Chief Executive Officer</font></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><p><font size="2" face="Arial, Helvetica, sans-serif"><b>BCE INC.</b></font></p>
      <p>&nbsp;</p></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">By:</font></div></td>
    <td width="45%"><font size="2" face="Arial, Helvetica, sans-serif">(signed)<em>
      Michael J. Sabia</em></font></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><HR NOSHADE COLOR="Black" SIZE="1"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Name: Michael J. Sabia<br>
      Title: President and Chief Executive Officer</font></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><p><font size="2" face="Arial, Helvetica, sans-serif"><b>THE WOODBRIDGE
        COMPANY LIMITED</b></font></p>
      <p>&nbsp;</p></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">By:</font></div></td>
    <td width="45%"><font size="2" face="Arial, Helvetica, sans-serif">(signed)<em>
      W. Geoffrey Beattie</em></font></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><HR NOSHADE COLOR="Black" SIZE="1"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Name: W. Geoffrey Beattie<br>
      Title: President</font></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><p><font size="2" face="Arial, Helvetica, sans-serif"><b>1565117 ONTARIO
        LIMITED</b></font></p>
      <p>&nbsp;</p></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">By:</font></div></td>
    <td width="45%"><font size="2" face="Arial, Helvetica, sans-serif">(signed)<em>
      David W. Binet</em></font></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><HR NOSHADE COLOR="Black" SIZE="1"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Name: David W. Binet<br>
      Title: Senior Vice-President</font></td>
  </tr>
</table>
<br>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><p><font size="2" face="Arial, Helvetica, sans-serif"><b>ONTARIO TEACHERS&#146;
        PENSION PLAN BOARD</b></font></p>
      <p>&nbsp;</p></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">By:</font></div></td>
    <td width="45%"><font size="2" face="Arial, Helvetica, sans-serif">(signed)<em>
      Dean Metcalf</em></font></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><HR NOSHADE COLOR="Black" SIZE="1"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Name: Dean Metcalf<br>
      Title: Vice President</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">By:</font></div></td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">&nbsp;</font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><HR NOSHADE COLOR="Black" SIZE="1"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Name: <br>
      Title:</font></td>
  </tr>
</table>
<p>&nbsp;</p>
<P ALIGN="CENTER">&nbsp;</P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p align="center"><font size="2" face="Arial, Helvetica, sans-serif">- 65 -</font></p>
<p>&nbsp;</p>
<table width="99%" border="0">
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><p><font size="2" face="Arial, Helvetica, sans-serif"><b>TORSTAR CORPORATION</b></font></p>
      <p>&nbsp;</p></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%"><div align="right"><font size="2" face="Arial, Helvetica, sans-serif">By:</font></div></td>
    <td width="45%"><font size="2" face="Arial, Helvetica, sans-serif">(signed)<em>
      J. Robert Prichard</em></font></td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="45%"><HR NOSHADE COLOR="Black" SIZE="1"></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Arial, Helvetica, sans-serif">Name: J. Robert Prichard<br>
      Title: President and Chief Executive Officer</font></td>
  </tr>
</table>
<p>&nbsp; </p>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p>&nbsp;</p>
<p>&nbsp;</p>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Schedule
  14.1</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="CENTER"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Dispute
  Resolution and Arbitration Procedure</B></FONT></P>
<p><font size="2" face="Arial, Helvetica, sans-serif">Definitions </font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">1. </font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">In this
      Schedule:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"><strong>"Arbitration
      Act"</strong> has the meaning attributed thereto in paragraph 2;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>Arbitrators</b>&#148;
      means the panel of three arbitrators appointed pursuant to paragraphs 6
      and 7;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>Chair</b>&#148;
      means the chair appointed pursuant to paragraph 7;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(d) </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>Claimant</b>&#148;
      means a Party that commences an arbitration pursuant to paragraph 4;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(e)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>Disputes</b>&#148;
      has the meaning attributed thereto in section 14.1.1 of the Agreement;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(f)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>Notice
      of Arbitration</b>&#148; has the meaning attributed thereto in paragraph
      4;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(g)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>paragraph</b>&#148;
      means a paragraph of this Schedule;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(h)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>Party</b>&#148;
      means a party to a Dispute; and</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(i)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">&#147;<b>Respondent</b>&#148;
        means a Party who is not the Claimant, and the term &#147;<b>Respondents</b>&#148;
        shall, where there is only one Respondent, refer to that Respondent.</font></div></td>
  </tr>
</table>
<br>
<p><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>General</B></FONT></p>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">2.
      </font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Pursuant
        to section 14.1 of the Agreement, all Disputes which are to be determined
        according to the terms of this Schedule shall be arbitrated in accordance
        with the provisions of the <i>Arbitration Act, 1991</i> (Ontario) (the
        &#147;<b>Arbitration Act</b>&#148;), except to the extent that those provisions
        are modified by the provisions of the Agreement and this Schedule.</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">3.
      </font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">No
        individual shall be appointed to arbitrate a Dispute pursuant to this
        Schedule unless he or she agrees in writing to be bound by the provisions
        of this Schedule.</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp; </p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Commencement
  of Dispute Resolution</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">4.</font></td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">A
        Party may commence a dispute resolution as Claimant by delivering a written
        notice of arbitration (the &#147;<b>Notice of Arbitration</b>&#148;) to
        each of the Respondents.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">5.</font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif"> The Notice
      of Arbitration shall include in the text or in one or more attachments:</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(a) </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">the full
      names, descriptions and addresses of the Parties;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> a demand
      that the Dispute be referred to arbitration pursuant to this Schedule;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> a general
      description of the Dispute;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(d)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> the relief
      or remedy sought; and</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(e)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> the name
      of the person the claimant nominates as an arbitrator.</font></td>
  </tr>
</table>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Arbitration</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">6.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        arbitrator nominated by the Claimant shall be one member of the panel
        of Arbitrators and within 10 days of the receipt or deemed receipt of
        the Notice of Arbitration by all of the Respondents, the Respondents,
        by notice to the Claimant, shall jointly appoint a second arbitrator to
        serve on the panel of Arbitrators who will resolve the Dispute, and the
        arbitrator nominated by the Claimant shall be deemed to have also been
        so appointed.</font></div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">7.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">After
        the Respondents have appointed a second arbitrator pursuant to paragraph
        6, then, within five days of the appointment, the appointees of the Claimant
        and Respondents shall, by notice to the Parties, appoint a third and final
        arbitrator to act as chair of the Arbitrators, failing which a chair shall
        be appointed by a judge of the Superior Court of Justice of Ontario on
        the application of any Party on notice to all of the other parties.</font></div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">8.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Subject
        to the Arbitration Act, the Agreement and this Schedule, the Arbitrators
        may conduct the arbitration in such manner as the Arbitrators consider
        appropriate.</font> </div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="right"><font size="1" face="Arial, Helvetica, sans-serif"><b>Schedule
  14.1 </b>&#151; Page 2</font> </p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp; </P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Interim
  Relief</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">9.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Prior
        to the appointment of the Arbitrators, the Parties may apply to the courts
        for interim relief. A request for interim relief by a Party to a court
        shall not be considered to be incompatible with section 14.1 of the Agreement
        or as a waiver of that provision.</font></div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font size="2" face="Arial, Helvetica, sans-serif">10.</font></td>
    <td><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">At
        the request of any Party, the Arbitrators may take such interim measures
        as the Arbitrators consider necessary in respect of the Dispute, including
        measures for the preservation of assets, the conservation of goods or
        the sale of perishable goods. The Arbitrators may require security for
        the costs of such measures.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Procedures</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">11.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        Arbitrators, after giving the Claimant and all Respondents an opportunity
        to be heard, shall determine the procedures for the arbitration, provided
        that such procedures shall include an opportunity for written submissions
        and responses to written submissions by or on behalf of all Parties, and
        may also include proceedings by way of exchange of oral argument, hearings
        with or without witnesses, and such other procedures as the Arbitrators
        may consider appropriate. Notwithstanding the foregoing, if all Parties
        agree on a code of procedures or on specific matters of procedure, that
        agreement shall be binding on the Arbitrators.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Pleadings</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">12.</font></td>
    <td colspan="2"><font size="2" face="Arial, Helvetica, sans-serif">The following
      shall apply to the arbitration of any Dispute:</font> </td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(a)
      </font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">within
        10 days of the appointment of the Arbitrators, the Claimant shall deliver
        to all the Respondents and the Arbitrators a written statement (the &#147;<b>Statement</b>&#148;)
        concerning the Dispute setting forth, with particularity, the Claimant&#146;s
        position with respect to the Dispute and the material facts upon which
        the Claimant intends to rely;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        within five days after the delivery of the Statement, each Respondent
        shall deliver to the Claimant and the Arbitrators a written response (an
        &#147;<b>Answer</b>&#148;) to the Statement setting forth, with particularity,
        the Respondent&#146;s position on the Dispute and the material facts upon
        which the Respondent intends to rely;</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="right"><font size="1" face="Arial, Helvetica, sans-serif"><b>Schedule
  14.1 </b>&#151; Page 3</font></P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        if any Respondent fails to deliver an Answer within the time limit in
        paragraph 12(b), that Respondent shall be deemed to have waived any right
        to provide an Answer to the Statement and the arbitration may continue
        without further notice to that Respondent;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(d)
      </font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">within
        five days after the earlier of: (i) the day all Answers have been delivered,
        and (ii) the fifth day referred to in paragraph 12(b), the Claimant may
        deliver to all the Respondents and the Arbitrators a written reply (a
        &#147;<b>Reply</b>&#148;) to the Answer of each Respondent, setting forth,
        with particularity, the Claimant&#146;s response, if any, to the Answer;
        and </font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(e)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        within the time limit in paragraph 12(b), a Respondent may also deliver
        to the Claimant, each other Respondent and the Arbitrators a counter-statement
        (a &#147;<b>Counter-Statement</b>&#148;) setting forth, with particularity,
        any additional Dispute for the Arbitrators to decide. Within five days
        of the delivery of a Counter-Statement, the Claimant shall deliver to
        each Respondent and the Arbitrators an Answer to the Counter-Statement.
        If the Claimant fails to deliver an Answer to the Counter-Statement within
        such five day period, the Claimant shall be deemed to have waived any
        right to provide an Answer to the Counter-Statement. Within five days
        after the delivery of an Answer to the Counter-Statement, the Respondents
        may deliver to the Claimant and the Arbitrators a Reply to such Answer.
        Any Dispute submitted to arbitration in accordance with this paragraph
        12(e) shall be governed by, and dealt with as if it were the subject of
        a Statement in accordance with, this Schedule, except that it shall be
        decided by the Arbitrators already appointed, and shall be determined
        by the Arbitrators accordingly.</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Case Conferences</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">13.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">At
        any time after the appointment of the Arbitrators, any Party may apply
        in writing to the Chair to convene a case conference for the determination
        of any preliminary or interlocutory matter or to provide for planning
        and scheduling of the arbitration. The Chair shall convene the case conference
        on the date specified in the application. The Party requesting a case
        conference shall deliver a copy of the application to each other Party
        to the arbitration before delivering the application to the Chair.</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="right"><font size="1" face="Arial, Helvetica, sans-serif"><b>Schedule
  14.1 </b>&#151; Page 4</font></P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">14.</font></td>
    <td colspan="2"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Issues
        to be determined at the first case conference after the completion of
        the steps contemplated by paragraph 12 or the expiry of the time limit
        for any mandatory step not taken by such time shall include the following:</font>
      </div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(a) </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">any request
      for an adjournment of the case conference and the terms, if any, of any
      adjournment; </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(b) </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">the identification
      and narrowing of the issues in the arbitration; </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(c)
      </font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">the
        desirability of the Parties engaging in further settlement negotiations
        or some other dispute resolution process, with or without the assistance
        of a mediator;</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(d)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> fixing
      a date, time and place for the Hearing (as defined in paragraph 15 of this
      Schedule); </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(e) </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">the manner
      of presentation of evidence at the Hearing; and </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(f)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        a timetable for the disclosure by each Party to each other Party of the
        evidence in that Party&#146;s possession, power, or control which is relevant
        to any issue in the Dispute.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>The Hearing</B></FONT></P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">15.</font></td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">At
        the date, time and place fixed at a case conference or, if no case conference
        has been held, at a date, time and place fixed by the Chair within 60
        days of the appointment of the Chair, the Arbitrators shall convene a
        hearing (the &#147;<b>Hearing</b>&#148;). If there has been no case conference,
        the Hearing shall be convened by delivery by the Chair of notice of the
        date, time and place of the Hearing to each Party to the arbitration at
        least 30 days before the date of the Hearing.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">16.</font></td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Unless
        otherwise determined by the Chair, the presentation of a Party&#146;s
        case at the Hearing shall include the delivery of a pre-hearing memorandum
        to the Arbitrators and to each other Party including the following elements:</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(a)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> a statement
      of facts; </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(b)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> a statement
      of each issue to be determined;</font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(c)</font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif"> a statement
      of the applicable law on which the Party relies;</font> </td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<p align="right"><font size="1" face="Arial, Helvetica, sans-serif"><b>Schedule
  14.1</b> &#151; Page 5</font> </p>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="left">&nbsp;</P>
<P ALIGN="left">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">(d) </font></td>
    <td width="80%"><font size="2" face="Arial, Helvetica, sans-serif">a statement
      of the relief requested including the basis for any damages claimed; </font></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(e)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        a statement of the evidence to be presented including the name, capacity
        and expected evidence of each witness to be called, and an estimate of
        the time required for the witness&#146;s direct testimony; and</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">(f)</font></td>
    <td width="80%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">
        an appendix containing all sworn statements or transcripts or portions
        of transcripts on which the Party intends to rely at the Hearing.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><FONT size="2" FACE="Arial, Helvetica, sans-serif">17.</FONT></td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        pre-hearing memorandum of the Claimant shall be delivered not less than
        20 days before the date of the Hearing. The pre-hearing memorandum of
        each Respondent shall be delivered not less than 10 days before the date
        of the Hearing.</font></div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><FONT size="2" FACE="Arial, Helvetica, sans-serif">18.</FONT></td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">At
        the Hearing, the Arbitrators shall consider any evidence as would be admissible
        in a court of law and any other evidence the Arbitrators consider appropriate
        to determine the Dispute. Evidence may be presented in written or oral
        form as the Party presenting the evidence considers appropriate, provided
        that no written statement of any witness shall be accepted by the Arbitrators
        unless each other adverse Party has been given an opportunity at the Hearing
        to cross-examine the witness on the information contained in the written
        statement. The Arbitrators shall determine the applicability of any privilege
        or immunity and the admissibility, relevance, materiality and weight of
        any evidence offered.</font> </div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><FONT size="2" FACE="Arial, Helvetica, sans-serif">19.</FONT></td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        Arbitrators shall have the right to exclude any witness from the Hearing
        during the testimony of any other witness.</font></div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="10%">&nbsp;</td>
    <td width="80%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><FONT size="2" FACE="Arial, Helvetica, sans-serif">20.</FONT></td>
    <td colspan="2"> <div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Despite
        sub-section 28(1) of the Arbitration Act, the Arbitrators shall not, without
        the written consent of all Parties, retain any expert.</font></div></td>
  </tr>
</table>
<p><font size="2" face="Arial, Helvetica, sans-serif"><b>Awards</b></font></p>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">21.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        Arbitrators may make final, interim, interlocutory and partial awards.
        Any award shall be considered to be validly made if it is approved by
        the majority of the Arbitrators, or in the absence of majority approval,
        then by the Chair. An award may grant any remedy or relief which the Arbitrators
        consider just and equitable and consistent with the intention of the Parties
        under the Agreement. The Arbitrators shall state in the award whether
        or not the Arbitrators view the award as final or interim, for purposes
        of any judicial proceedings in connection with such award.</font></div></td>
  </tr>
</table>
<p>&nbsp;</p>
<p>&nbsp;</p>
<P ALIGN="right"><font size="1" face="Arial, Helvetica, sans-serif"><b>Schedule
  14.1 </b>&#151; Page 6</font></P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"> </FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Subject
        to section 39 of the Arbitration Act, the Arbitrators&#146; final award
        shall be made within 30 days of the conclusion of the Hearing.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">22.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">All
        awards for the payment of money shall include prejudgment and postjudgment
        interest in accordance with sections 127 to 130 of the <i>Courts of Justice
        Act</i> (Ontario) with necessary modifications. </font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">23.</font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">All awards
      shall be in writing and shall state reasons.</font> </td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">24.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        Arbitrators may apportion the costs of the arbitration, including the
        reasonable fees and disbursements of the Arbitrators and the legal costs
        and disbursements of the Parties, between or among the Parties in such
        manner as the Arbitrators consider reasonable. In determining the allocation
        of these costs, the Arbitrators shall invite submissions as to costs and
        may consider, among other things, any offer of settlement made by any
        Party during the course of the arbitration.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">25.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Executed
        copies of all awards shall be delivered by the Arbitrators to the Parties
        as soon as is reasonably possible.</font></div></td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">26.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">Subject
        to section 44 of the Arbitration Act, all awards of the Arbitrators shall
        be final and binding on the Parties, and there shall be no appeal of any
        such award whatsoever. The Parties undertake to satisfy any award without
        delay.</font> </div></td>
  </tr>
</table>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><B>Additional
  Matters</B></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<table width="99%" border="0">
  <tr>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif">27.</font></td>
    <td width="90%"><font size="2" face="Arial, Helvetica, sans-serif">All case
      conferences and Hearings shall be conducted in Toronto, Ontario in the English
      language.</font> </td>
  </tr>
  <tr>
    <td width="10%">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">28.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">All
        time limits referred to in this Agreement may be extended by the Chair
        for such period and for such reasons as the Arbitrators in the Arbitrators&#146;
        discretion may determine upon application in writing made to the Arbitrators
        by the Claimant or any Respondent on notice to each other Party to the
        arbitration, either before or within two days after the expiry of the
        relevant time limits and, in the event that the other Party or Parties
        wish to oppose the application, the other Party or Parties shall be given
        an opportunity to make submissions on the application.</font></div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp; </P>
<P ALIGN="right"><FONT size="1" FACE="Arial, Helvetica, sans-serif"><B>Schedule
  14.1 </B>&#151; Page 7</FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="99%" border="0">
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">29.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">All
        notices or other communications required or permitted to be given under
        this Schedule to a Party shall be given in the manner specified in section
        16.4 of the Agreement. All notices or other communications and all other
        documents required or permitted by this Schedule to be given by the Parties
        to the Arbitrators shall be given in accordance with the Arbitrators&#146;
        instructions.</font></div></td>
  </tr>
  <tr>
    <td width="10%" valign="top">&nbsp;</td>
    <td width="90%">&nbsp;</td>
  </tr>
  <tr>
    <td width="10%" valign="top"><font size="2" face="Arial, Helvetica, sans-serif">30.</font></td>
    <td width="90%"><div align="justify"><font size="2" face="Arial, Helvetica, sans-serif">The
        Parties desire that any Dispute should be conducted in strict confidence
        and that there shall be no disclosure to any person of the existence of
        the Dispute or any aspect of the Dispute except as is necessary for the
        resolution of the Dispute. Any case conference or Hearing shall be attended
        only by those persons whose presence, in the opinion of any Party or the
        Arbitrators, is reasonably necessary for the resolution of the Dispute.
        All matters relating to, all evidence presented to, all submissions made
        in the course of, and all documents produced in accordance with this Schedule
        or any order of the Arbitrators or created in the course of or for the
        purposes of an arbitration, as well as any arbitral award, shall be kept
        confidential and shall not be disclosed to any person without the prior
        written consent of all the Parties except in connection with an application
        of a Party under section 46 of the Arbitration Act, as required to enforce
        the arbitral award, by applicable laws, or by an order of an Arbitrator
        made pursuant to a motion or application on notice to all Parties.</font>
      </div></td>
  </tr>
</table>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp; </P>
<P ALIGN="right"><FONT size="1" FACE="Arial, Helvetica, sans-serif"><B>Schedule
  14.1 </B>&#151; Page 8</FONT></P>
<HR style="MARGIN-TOP: -10px" align=center width="100%" color=#000000 noShade
SIZE=4>
<p>&nbsp;</p>
<P ALIGN="center"><FONT FACE="Times New Roman, Times, Serif"><FONT SIZE="3"><B><font size="2" face="Arial, Helvetica, sans-serif">SIGNATURE</font></B></FONT></FONT></P>
<font size="2" face="Arial, Helvetica, sans-serif"> </font>
<p>&nbsp;</p>
<P ALIGN="LEFT"><FONT size="2" FACE="Arial, Helvetica, sans-serif">Pursuant to
  the requirements of the Securities Exchange Act of 1934, the Registrant has
  duly caused this report to be signed on its behalf by the undersigned, thereunto
  duly authorized.</FONT></P>
<P ALIGN="LEFT">&nbsp;</P>
<P ALIGN="LEFT">&nbsp;</P>
<table width="100%" border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="45%"><FONT size="2" FACE="Arial, Helvetica, sans-serif"><b>BCE
      Inc. </b></FONT></td>
    <td width="10%">&nbsp;</td>
  </tr>
  <tr>
    <td width="45%"> <p>&nbsp;</p>
      <p>&nbsp;</p>
      <p>&nbsp;</p></td>
    <td width="45%" valign="bottom"><font size="2" face="Arial, Helvetica, sans-serif"><em>(signed)
      Patricia A. Olah</em><br>
      </font> <hr width=100% size=1 color=BLACK noshade> </td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><br>
      <br>
      <br>
      <br>
      <br>
      </font> </td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="45%"><FONT size="2" FACE="Arial, Helvetica, sans-serif">Patricia
      A. Olah<br>
      Corporate Secretary</FONT></td>
    <td width="10%">&nbsp;</td>
  </tr>
  <tr>
    <td width="45%">&nbsp;</td>
    <td width="45%" valign="bottom"><font size="2" face="Arial, Helvetica, sans-serif">Date:
      December 13, 2005</font></td>
    <td width="10%"><font size="2" face="Arial, Helvetica, sans-serif"><br>
      <br>
      <br>
      </font></td>
  </tr>
</table>
<p>&nbsp;</p>
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