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IMAX CORPORATION




EXHIBIT 4.3




EXECUTION COPY




REGISTRATION RIGHTS AGREEMENT




          This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of February 9, 1999,
by and among Imax Corporation, a corporation organized under the laws of Canada (the
“Company”), Wasserstein Perella Partners, L.P., a Delaware limited partnership
(“WPLP”), Wasserstein Perella Offshore Partners, L.P., a Delaware limited partnership
(“WPOP”), WPPN, Inc., a Delaware corporation (“WPPN”), the Michael J. Biondi Voting
Trust (together with WPLP, WPOP and WPPN, “WP”), Bradley J. Wechsler (“Wechsler”)
and Richard L. Gelfond (“Gelfond” and, together with Wechsler, the “GW
Shareholders”).




W I T N E S S E T H:




          WHEREAS, WP is the beneficial holder of common shares of the Company (“Common
Shares”);




          WHEREAS, the GW Shareholders are the beneficial holders of Common Shares and options to
purchase Common Shares (“Options”); and




          WHEREAS, contemporaneously herewith, the parties are entering into a Second Amended and
Restated Shareholders’ Agreement (the “1999 Shareholders’ Agreement”) and the parties are
entering into an Amended and Restated Standstill Agreement (the “1999 Standstill
Agreement”).




          NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth
herein and for other good and valuable consideration, the receipt and legal sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:




          Section 1. Definitions.





     The terms set forth below shall have the following definitions:




     “1999 Shareholders’ Agreement” has the meaning set forth in the Recitals hereto.




     “1999 Standstill Agreement” has the meaning set forth in the Recitals hereto.




     “Advice” has the meaning set forth in Section 3(c) hereof.









 



 

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     “Affiliate” of any Person means a Person that directly, or indirectly through
one or more intermediaries, controls, is controlled by or is under common control with such
Person, and, in the case of a Person who is a natural person, such natural person’s family,
including any child, stepchild, grandchild, parent, stepparent, grandparent, spouse,
sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or
sister-in-law, and shall include adoptive relationships, and any personal representatives.
A Person shall be deemed to “control” (including the correlative meanings, the terms
“controlling”, “controlled by”, and “under common control with”) another Person if the
controlling Person possesses, directly or indirectly, the power to direct or cause the
direction of the management or policies of the controlled Person, whether through ownership
of voting securities, by contract or otherwise.




     “Best Efforts” shall mean an undertaking by a party to perform or satisfy an
obligation or duty or otherwise act in a manner reasonably calculated to obtain the intended
result by action not disproportionate, unreasonably burdensome or otherwise unreasonable
under the circumstances; provided, that the foregoing shall not include efforts
which require the performing party to, among other things, expend any funds in an amount
disproportionate, unreasonably burdensome or otherwise unreasonable under the circumstances
or to institute litigation.




     “Business Day” means a day of the year other than a day on which banks are
authorized or obligated to be closed in New York, New York.




     “Canadian Offering” has the meaning set forth in Section 3(a)(1) hereof.




     “Commission” has the meaning set forth in Section 3(b)(1) hereof.




     “Common Shares” has the meaning set forth in the Recitals hereto.




     “Company” has the meaning set forth in the introductory paragraph hereto.




     “Demand Notice” has the meaning set forth in Section 3(b)(1) hereof.




     “Demand Registration” has the meaning set forth in Section 3(b)(1) hereof.




     “Exchange Act” has the meaning set forth in Section 3(f)(1) hereof.




     “Gelfond” has the meaning set forth in the introductory paragraph hereto.




     “GW Shareholders” has the meaning set forth in the introductory paragraph
hereto.




     “Inspectors” has the meaning set forth in Section 3(c)(14) hereof.




     “IPO Closing” means the closing of the Company’s initial public offering of
Common Shares.









 



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     “IPO Shares” means the Liquidation Shares and the Common Shares, including
Common Shares subject to Options and warrants, beneficially owned by the parties on the date
of the IPO Closing, subject to adjustment to reflect any stock dividend, stock split,
reverse stock split, recapitalization or other similar transaction after the date of the IPO
Closing.




     “Liquidation Notice” has the meaning set forth in Section 2(c).




     “Liquidation Shares” has the meaning set forth in the 1999 Shareholders’
Agreement.




     “Majority Amount” has the meaning set forth in Section 3(a) hereof.




     “NASD” means the National Association of Securities Dealers, Inc.




     “Note Purchase Agreement” means the Note Purchase Agreement, dated as of
January 3, 1994, by and among WPOP, WPLP and the Company, as amended.




     “Options” has the meaning set forth in the Recitals hereto.




     “Person” means any individual, corporation, partnership, joint venture, trust,
unincorporated or governmental organization or any agency or political subdivision thereof.




     “Piggyback Registration” has the meaning set forth in Section 3(a) hereof.




     “Proposed Registration” has the meaning set forth in Section 3(a) hereof.




     “Records” has the meaning set forth in Section 3(c) hereof.




     “Registrable Securities” means the Common Shares (including the Common Shares
issuable upon exercise of options and all WP Shares), but with respect to any such Common
Share, only so long as such Common Share continues to be a Restricted Security or the holder
of such share is an Affiliate of the Company.




     “Registration Expenses” has the meaning set forth in Section 3(e) hereof.




     “Restricted Security” means a Common Share, (or a Common Share issuable upon
exercise of an Option) until such time as such Common Share or Option (i) has been
effectively registered under the Securities Act or qualified for distribution in Canada
pursuant to Canadian law in circumstances exempt under the Securities Act or when the
Securities Act does not apply and disposed of in accordance with the registration statement
or prospectus, as the case may be, covering it, (ii) has been sold publicly pursuant to Rule
144 under the Securities Act (or any similar provision in force, including any similar
provision under the Securities Act or under any relevant Canadian law), or (iii)
has been otherwise transferred and the Company has delivered a new









 



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certificate or other
evidence of ownership for it not subject to any legal or other restriction and not bearing a
legend restricting its transfer without registration or an exemption therefrom.




     “Securities” means the Common Shares, including the Common Shares issuable upon
exercise of the Options.




     “Securities Act” means the Securities Act of 1933, as amended.




     “Shareholders” means the GW Shareholders together with WP.




     “Subsidiary” means any corporation or other entity of which securities or other
ownership interests having ordinary voting power to elect a majority of the Board of
Directors of their equivalents of such Person shall, at the time as of which any
determination is being made, be owned by the Company, either directly or through
Subsidiaries.




     “Wechsler” has the meaning set forth in the introductory paragraph hereto.




     “Working Capital Facility” has the meaning set forth in the Note Purchase
Agreement.




     “WP” has the meaning set forth in the introductory paragraph hereto.




     “WP Shares “ has the meaning set forth in the 1999 Shareholders’ Agreement.




     “WPLP” has the meaning set forth in the introductory paragraph hereto.




     “WPOP” has the meaning set forth in the introductory paragraph thereto.



          Section 2. Issuance of Securities; Share Certificates; Miscellaneous Agreements




          (a) Legend. (i) The Company shall be entitled to affix to each certificate evidencing
Restricted Securities held by a party to this Agreement a legend in substantially the following
form:





THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED. NO TRANSFER OF SUCH SECURITIES MAY BE MADE UNLESS SUCH TRANSFER IS
MADE IN CONNECTION WITH AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR PURSUANT TO AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT OR SUCH ACT DOES NOT APPLY.



          (ii) In the event that any Securities held by a party to this Agreement shall cease to be
Restricted Securities, the Company shall, upon the written request of the holder











 



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thereof, issue to
such holder a new certificate evidencing such Securities without the legend required by Section
2(a) endorsed thereon.




          (b) Exclusive Right to Negotiate. In the event that (i) the GW Shareholders own at
least 25% of the IPO Shares owned by them at the time of the IPO Closing, (ii) WP has received cash
distributions in an amount such that on a compounded annual basis it shall have received a return
on its original investment in the Company (including amounts invested to purchase securities
pursuant to the Working Capital Facility) as well as a 30% compounded annual return on such
investment (and such distributions shall not be subject to return by it to the Company) and (iii)
WP, rather than the Board of Directors of the Company, initiates the sale of the Company as an
entirety, the Company shall give the GW Shareholders written notice thereof. WP agrees that for 60
days after receipt by the GW Shareholders of such written notice it will not solicit, initiate or
encourage submission of inquiries, proposals or offers or negotiate with any party other than the
GW Shareholders with regard to the sale of the Company and that for 120 days after receipt by the
GW Shareholders of such written notice it will not enter into any agreement for any such sale to
any party other than the GW Shareholders.




          (c) Liquidating Rights of GW Shareholders. If the GW Shareholders desire to exercise
the rights set forth in this Section 2(c), they shall send written notice of such desire to the
Company and WP between March 1 and March 31 of any of 1999, 2000 or 2001 (the “Liquidation
Notice”). The GW Shareholders shall only be entitled to send one Liquidation Notice pursuant
to this Section 2(c). The Company shall then use its Best Efforts to cause at its option either
(i) the sale of the Company within a period of 180 days from its receipt of such Liquidation
Notice, which in the case of a sale to WP or an Affiliate of WP, or in the case of a sale in a
transaction where the fees to be received by WP or an Affiliate of WP are not customary fees
charged by comparable entities for similar services, shall be at a price per Common Share deemed to
be fair by a nationally recognized investment banking firm that is not Affiliated with WP or any
Person holding an interest in any fund of WP, (ii) the filing of a registration statement pursuant
to the Securities Act within a period of 120 days from its receipt of such Liquidation Notice
pursuant to which the GW Shareholders may sell all of their Securities; or (iii) subject to
applicable Canadian law, the Company to purchase all of the GW Shareholders’ Securities for cash
within the time and at the fair market value thereof determined as set forth below. The Company
shall have 30 days after receipt of such Liquidation Notice to notify the GW Shareholders in
writing which of the foregoing provisions it will use Best Efforts to comply with.




          If the Company elects to use Best Efforts to pursue the purchase of the Securities as set
forth in clause (iii) above, the GW Shareholders shall have 10 days from their receipt of such
notice from the Company to notify the Company in writing of what they believe to be the fair market
value of such Securities. The Company shall have 10 days from its receipt of such notice from the
GW Shareholders to notify the GW Shareholders in writing that it does not concur with their
determination of the fair market value for such Securities. If the Company notifies the GW
Shareholders in writing within such period that it objects to such valuation, the GW Shareholders
shall have an additional 30 days to notify the Company of the fair market value of the Securities
as
determined by a nationally recognized investment banking firm selected by the GW Shareholders. The
GW Shareholders shall include with such notification a










 



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copy of the valuation opinion delivered to
them by such investment banking firm. The Company shall have 10 days from the receipt of such
notification and valuation opinion to notify the GW Shareholders in writing that it does not concur
with the fair market value for such Securities as set forth in such opinion. If the Company
notifies the GW Shareholders in writing within such period that it objects to such valuation, it
shall have an additional 30 days to notify the GW Shareholders of the fair market value of the
Securities as determined by a nationally recognized investment banking firm selected by the
Company. The Company shall include with such notification a copy of the valuation opinion
delivered to it by such investment banking firm. If the fair market value of the Securities as
determined by the nationally recognized investment banking firm selected by the Company is greater
than or equal to 95% of the fair market value of the Securities as determined by the nationally
recognized investment banking firm selected by the GW Shareholders, the fair market value of the
Securities shall be equal to half of the sum of the fair market values of such Securities as set
forth in such opinions. If the provisions of the preceding sentence do not apply and if within 10
days of the GW Shareholders’ receipt of notice from the Company of the fair market value of the
Securities as determined by the nationally recognized investment banking firm selected by the
Company, the GW Shareholders and the Company are still unable to agree on such fair market value,
then the two investment banking firms will select a third investment banking firm who will have 30
days to deliver its opinion to the Company and the GW Shareholders as to its determination of the
fair market value of the Securities. The determination by such third investment banking firm shall
be conclusive and binding on the Company and the GW Shareholders; provided that in no event
will such value be less than the value determined by the investment banking firm selected by the
Company or more than the value determined by the investment banking firm selected by the GW
Shareholders. All determinations of the value of the GW Shareholders’ Securities made by
investment banking firms in connection with the Company’s election to purchase the GW Shareholders’
Securities pursuant to this Section 2(c) shall value such Securities by reference to such
Securities’ pro rata portion of the going concern equity value of the Company as of the date of
such determination, considered in the context of a hypothetical purchase of the Company negotiated
between a willing buyer and a willing seller, neither of whom is under a compulsion to act, without
any discount for a minority interest, transfer restrictions, illiquidity or other similar factors.
The GW Shareholders shall bear the fees, costs and expenses of the investment banking firm retained
by them and WP shall bear the fees, costs and expenses of the investment banking firm retained by
the Company. The fees, costs and expenses of the third investment banking firm, if any, shall be
borne 50% by WP, on the one hand, and 50% by the GW Shareholders, on the other hand. The Company
shall be obligated to purchase the Securities on a date no later than 10 days after the fair market
value thereof is agreed to as set forth above.




          Section 3. Registration Rights.




          (a) Piggyback Registration Rights.




          (1) Right to Piggyback. Subject to the last sentence of this paragraph (1), whenever
the Company proposes to register any Common Shares under the Securities Act, other than a
registration statement on Form S-4 or S-8 (or any successor forms or comparable foreign
forms) or filed in connection with an exchange offer or an offering of securities solely to the
Company’s existing stockholders (a “Proposed Registration”) and the registration form to be
used










 



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may be used for the registration of the Registrable Securities (a “Piggyback
Registration”), the Company will give prompt written notice to WP and the GW Shareholders of
its intention to effect such a registration and will, subject to Section 3(a)(2) hereof, include in
such Piggyback Registration all Registrable Securities with respect to which the Company has
received written requests for inclusion therein from WP and the GW Shareholders within 15 days
after receipt of the Company’s notice, provided that if, at any time after giving written
notice of its intention to register any Common Shares and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall determine for
any reason not to register or to delay registration of such shares, the Company may, at its
election, give written notice of such determination to each holder of Registrable Securities and,
thereupon, (a) in the case of a determination not to register, shall be relieved of its obligation
to register any Registrable Securities in connection with such registration, and (b) in the case of
delay in registering, shall be permitted to delay registering any Registrable Securities for the
same period as the delay in registering such other shares. Except as may otherwise be provided in
this Agreement, Registrable Securities with respect to which such request for registration has been
received will be registered by the Company and offered to the public pursuant to this Section 3 on
the same terms and subject to the same conditions applicable to similar securities of the Company
included in the Proposed Registration.




          If the Company proposes, in conjunction with a Piggyback Registration, to file a prospectus
with any Canadian securities regulatory authority or otherwise to qualify the Common Shares for
distribution in any province of Canada (a “Canadian Offering”), each holder of Registrable
Securities shall be entitled, subject to applicable Canadian securities law, to participate in such
Canadian Offering to the same extent and on the same terms and conditions (before, during and after
the Canadian Offering), mutatis mutandis, as such holder is entitled to participate
in the Piggyback Registration under this Agreement.




          (2) Priority of Piggyback Registrations. If the managing underwriter or underwriters
advise the Company in writing that in its or their opinion the number or type of securities
proposed to be sold in a registration statement exceeds the number or type which can be sold in
such offering (a) at a price reasonably related to the then current market value of such
securities, or (b) without otherwise materially and adversely affecting the entire offering, then
the Company will include in such registration the number or type of Registrable Securities which,
in the opinion of such underwriter or underwriters, can be sold as follows: (i) first, the
securities that the Company proposes to sell for its own account or is required to register on
behalf of any Person exercising demand registration rights, and (ii) second, to the extent that the
number of securities described in clause (i) above is less than the number of securities that the
Company has been advised can be sold in such offering without the adverse effect referred to above,
the Registrable Securities of WP and the GW Shareholders which have been requested to be included
in such registration under this Section 3(a) and all Common Shares requested to be included by
third parties exercising rights similar to those granted in this Section 3(a), on a pro rata basis
(which, in the case of Common Shares, shall be based on the number of shares of Common Shares then
owned by each holder of Registrable Securities and each such other party assuming exercise
of all of their exchange, conversion and subscription rights with respect to all securities of the
Company).











 



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          (3) Selection of Underwriters. If any Piggyback Registration is an underwritten
offering, the Company will select a managing underwriter or underwriters to administer the
offering, which managing underwriter or underwriters will be of nationally recognized standing and
which will be reasonably acceptable (A) to WP (after consultation with the GW Shareholders) if the
Piggyback Registration is being made in connection with the exercise by WP of its Demand
Registration Rights under Section 3(b), (B) to the GW Shareholders (after consultation with WP) if
such Piggyback Registration is being made in connection with the exercise by the GW Shareholders of
their Demand Registration rights under Section 3(b), (C) if the foregoing clauses (A) and (B) do
not apply, to WP (after consultation with the GW Shareholders), so long as WP is a participant in
such underwritten offering and either (i) holds at least 75% of the IPO Shares held by it at the
time of the IPO Closing or (ii) holds more of the Securities (in each case assuming exercise of all
exchange, conversion or subscription rights with respect to all securities of the Company then held
by it) than any other holder, or (D) if the foregoing clauses (A), (B) and (C) do not apply, to
persons holding a majority of each type of the Registrable Securities to be included in such
registration statement (a “Majority Amount”).




          (b) Demand Registration Rights.




          (1) Right to Demand. WP or the GW Shareholders may make a written request to the
Company for registration with the Securities and Exchange Commission (the “Commission”)
under and in accordance with the provisions of the Securities Act of all or part of its Registrable
Securities. Within 10 days after receipt of any such request, the Company will serve written
notice (the “Demand Notice”) of such registration request to WP and the GW Shareholders and
the Company will include in such registration all Registrable Securities of WP and the GW
Shareholders with respect to which the Company has received written requests for inclusion therein
within 15 Business Days after the receipt by the applicable holder of the Demand Notice. All
requests made pursuant to this Section 3(b)(1) (each, a “Demand Registration”) will specify
the aggregate number and type of the Registrable Securities to be registered and will also specify
the intended methods of disposition thereof. WP shall be entitled to four Demand Registrations and
the GW Shareholders shall be entitled to two Demand Registrations.




          (2) Priority on Demand Registrations. If the managing underwriter or underwriters of
a Demand Registration (or, in the case of a Demand Registration not being underwritten, if (A) WP
(after consultation with the GW Shareholders) if such Demand Registration is being made at the
request of WP pursuant to Section 3(b), (B) the GW Shareholders (after consultation with WP) if
such Demand Registration is being made at the request of the GW Shareholders pursuant to Section
3(b), (C) if the foregoing clauses (A) and (B) do not apply, WP so long as WP either (i) holds at
least 75% of the IPO Shares held by it at the time of the IPO Closing or (ii) holds more of the
Securities (in each case assuming exercise of all exchange, conversion and subscription rights with
respect to all securities of the Company) than any other holder or (D) if the foregoing clauses
(A), (B) and (C) do not apply, a Majority Amount of each type of holders registering Registrable
Securities therein) advise the Company in writing
that in its or their opinion the number or type of securities proposed to be sold in such Demand
Registration exceeds the number which can be sold in such offering (a) at a price










 



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reasonably
related to the then current market value of such securities, or (b) without otherwise materially
and adversely affecting the entire offering, then the Company will include in such registration
only the number or type of securities which, in the opinion of such underwriter or underwriters (or
holders, as the case may be) can be sold in such offering without the adverse effect referred to
above, (x) first, Registrable Securities requested to be included in such offering by the party or
parties exercising a right to a Demand Registration, and (y) second, other securities of the
Company proposed to be included in such offering, in accordance with the priorities then existing
among the Company and the holders of such other securities.




          (3) Selection of Underwriters. If any Demand Registration is an underwritten
offering, (A) WP (after consultation with the GW Shareholders) if such Demand Registration is being
made at the request of WP pursuant to Section 3(b), (B) the GW Shareholders (after consultation
with WP) if such Demand Registration is being made at the request of the GW Shareholders pursuant
to Section 3(b), (C) if the foregoing clauses (A) and (B) do not apply, WP (after consultation with
the GW Shareholders), so long as WP is a participant in such underwritten offering and either (i)
holds at least 75% of the IPO Shares held by it at the time of the IPO Closing or (ii) holds more
of the Securities (in each case assuming exercise of all exchange, conversion and subscription
rights with respect to all securities of the Company) than any other holder or (D) if the foregoing
clauses (A), (B) and (C) do not apply, the holders of a Majority Amount of each type of the
Registrable Securities to be included in such Demand Registration will select a managing
underwriter or underwriters to administer the offering.




          (c) Registration Procedures. With respect to any Piggyback or Demand Registration,
the Company will, as expeditiously as practicable:





     (1) prepare and file with the Commission a registration statement which includes the
Registrable Securities and use its best efforts to cause such registration statement to
become effective; provided that before filing a registration statement or prospectus
or any amendments or supplements thereto, including documents incorporated by reference
after the initial filing of the registration statement, the Company will furnish to the
holders of the Registrable Securities covered by such Registration Statement and the
underwriters, if any, draft copies of all such documents proposed to be filed at least five
(5) business days prior thereto, which documents will be subject to the reasonable review of
such holders and underwriters, and the Company will not file any registration statement or
amendment thereto or any prospectus or any supplement thereto (including such documents
incorporated by reference) to which (A) WP (after consultation with the GW Shareholders), if
such registration is a Demand Registration being made at the request of WP pursuant to
Section 3(b), (B) the GW Shareholders (after consultation with WP), if such registration is
a Demand Registration being made at the request of the GW Shareholders pursuant to Section
3(b), (C) if the foregoing clauses (A) and (B) do not apply, WP so long as WP is a
participant in such underwritten offering and either (i) holds at least 75% of the IPO
Shares held by it at the time of the IPO Closing or (ii) holds more of the Securities (in
each case assuming exercise of all exchange, conversion and
subscription rights with respect to all securities of the Company then held by it) than any
other holder or (D) if the foregoing clauses (A), (B) and (C) do not apply, holders of a
Majority Amount of each type of the Registrable Securities covered by such registration









 



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statement or the underwriters, if any, shall reasonably object, and will notify each holder
of the Registrable Securities of any stop order issued or threatened by the Commission in
connection therewith and take all reasonable actions required to prevent the entry of such
stop order or to remove it if entered;





          (2) prepare and file with the Commission such amendments and post-effective amendments
to the registration statement as may be necessary to keep the registration statement
effective for a period of not less than 90 days (or such shorter period which will terminate
when all Registrable Securities covered by such registration statement have been sold or
withdrawn, but not prior to the expiration of the 90-day period referred to in Section 4(3)
of the Securities Act and Rule 174 thereunder, if applicable); cause the prospectus to be
supplemented by any required prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 under the Securities Act; and comply with the provisions of the
Securities Act applicable to it with respect to the disposition of all securities covered by
such registration statement during the applicable period in accordance with intended methods
of disposition by the sellers thereof set forth in such registration statement or supplement
to the prospectus. The Company shall not be deemed to have used its best efforts to keep a
registration statement effective during the applicable period if it voluntarily takes any
action that would result in selling holders of the Registrable Securities covered thereby
not being able to sell such Registrable Securities during that period unless such action is
required under applicable law;




          (3) furnish to any holder of Registrable Securities included in such registration
statement and the underwriter or underwriters, if any, without charge, at least one signed
copy of the registration statement and any post-effective amendment thereto, upon request,
and such number of conformed copies thereof and such number of copies of the prospectus
(including each preliminary prospectus) and any amendments or supplements thereto, and any
documents incorporated by reference therein, as such holder or underwriter may request in
order to facilitate the disposition of the Registrable Securities being sold by such holder
(it being understood that the Company consents to the use of the prospectus and any
amendment or supplement thereto by each holder holding Registrable Securities covered by the
registration statement and the underwriter or underwriters, if any, in connection with the
offering and sale of the Registrable Securities covered by the prospectus or any amendment
or supplement thereto); provided that before filing a registration statement or
prospectus or any amendment or supplements thereto, the Company will furnish to one counsel
selected by (A) WP (after consultation with the GW Shareholders) if such registration is a
Demand Registration being made at the request of WP pursuant to Section 3(b), (B) the GW
Shareholders (after consultation with WP), if such registration is a Demand Registration
being made at the request of the GW Shareholders pursuant to Section 3(b), (C) if the
foregoing clauses (A) and (B) do not apply, WP so long as WP is a participant in such
underwritten offering and either (i) holds at least 75% of the IPO Shares held by it at the
time of the IPO Closing or (ii) holds more
of the Securities (in each case assuming exercise of all exchange, conversion and
subscription rights with respect to all securities of the Company then held by it) than any
other holder or (D) if the foregoing clauses (A), (B) or (C) do not apply, the holders of a
Majority Amount of each type of the Registrable Securities covered by such registration









 



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statement, copies of all documents proposed to be filed which documents will be subject to
the review and comments of such counsel;




     (4) notify each holder of Registrable Securities included in such registration
statement, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act, when the Company becomes aware of the occurrence of any event as a
result of which the prospectus included in such registration statement (as then in effect)
contains any untrue statement of a material fact or omits to state a material fact necessary
to make the statements therein (in the case of the prospectus or any preliminary prospectus,
in light of the circumstances under which they were made) not misleading and, as promptly as
practicable thereafter, prepare and file with the Commission and furnish a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading;




     (5) use its Best Efforts to cause all Registrable Securities included in such
registration statement to be listed, by the date of the first sale of Registrable Securities
pursuant to such registration statement, on each securities exchange on which the Common
Shares are then listed or proposed to be listed, if any;




     (6) make generally available to its security holders an earnings statement satisfying
the provisions of Section 11(a) of the Securities Act no later than 45 days after the end of
the 12-month period beginning with the first day of the Company’s first fiscal quarter
commencing after the effective date of the registration statement, which earnings statement
shall cover said 12-month period;




     (7) make every reasonable effort to obtain the withdrawal of any order suspending the
effectiveness of the registration statement at the earliest possible moment;




     (8) if requested by the managing underwriter or underwriters or any holder of
Registrable Securities covered by the registration statement, promptly incorporate in a
prospectus supplement or post-effective amendment such information as the managing
underwriter or underwriters or such holder requests to be included therein, including,
without limitation, with respect to the number of Registrable Securities, being sold by such
holder to such underwriter or underwriters, the purchase price being paid therefor by such
underwriter or underwriters and with respect to any other terms of the underwritten offering
of the Registrable Securities to be sold in such offering; and promptly make all required
filings of such prospectus supplement or post-effective amendment;




     (9) as promptly as practicable after filing with the Commission of any document which
is incorporated by reference into a registration statement, deliver a copy of such document
to each holder of Registrable Securities covered by such registration statement;









 



12



     (10) on or prior to the date on which the registration statement is declared effective,
use its Best Efforts to register or qualify, and cooperate with the holders of Registrable
Securities included in such registration statement, the underwriter or underwriters, if any,
and their counsel, in connection with the registration or qualification of the Registrable
Securities covered by the registration statement for offer and sale under the securities or
blue sky laws of each state and other jurisdiction as any such holder or underwriter
reasonably requests in writing, to use its best efforts to keep each such registration or
qualification effective, including through new filings, or amendments or renewals, during
the period such registration statement is required to be kept effective and to do any and
all other acts or things necessary or advisable to enable the disposition in all such
jurisdictions of the Registrable Securities covered by the applicable registration
statement; provided that the Company will not be required to qualify generally to do
business in any jurisdiction where it is not then so qualified or to take any action which
would subject it to general service of process in any such jurisdiction where it is not then
so subject;




     (11) cooperate with the holders of Registrable Securities covered by the registration
statement and the managing underwriter or underwriters, if any, to facilitate the timely
preparation and delivery of certificates (not bearing any restrictive legends) representing
securities to be sold under the registration statement, and enable such securities to be in
such denominations and registered in such names as the managing underwriter or underwriters,
if any, or such holders may request;




     (12) use its Best Efforts to cause the Registrable Securities covered by the
registration statement to be registered with or approved by such other governmental agencies
or authorities as may be necessary to enable the seller or sellers thereof or the
underwriter or underwriters, if any, to consummate the disposition of such securities;




     (13) enter into such customary agreements (including, without limitation, an
underwriting agreement in customary form) and take all such other actions (A) WP (after
consultation with the GW Shareholders), if such registration is a Demand Registration being
made at the request of WP pursuant to Section 3(b), (B) the GW Shareholders (after
consultation with WP) if such registration is a Demand Registration being made at the
request of the GW Shareholders pursuant to Section 3(b), (C) if the foregoing clauses (A) or
(B) do not apply, WP so long as WP is a participant in such underwritten offering and either
(i) holds at least 75% of the IPO Shares held by it at the time of the IPO Closing or (ii)
holds more of the Securities (in each case assuming exercise of all exchange, conversion and
subscription rights with respect to all securities of the Company then held by it) than any
other holder or (D) if the foregoing clauses (A), (B) and (C) do not apply, the holders of a
Majority Amount of each type of the Registrable Securities being sold or
the underwriters retained by the holders participating in an underwritten public offering,
if any, reasonably request in order to expedite or facilitate the disposition of such
Registrable Securities;




     (14) make available for inspection by any holder of Registrable Securities included in
such registration statement, any underwriter participating in any disposition









 



13



pursuant to
such registration statement, and any attorney, accountant or other agent retained by any
such seller or underwriter (collectively, the “Inspectors”), all financial and other
records, pertinent corporate documents and properties of the Company (collectively, the
“Records”) as shall be reasonably necessary to enable the Inspectors to exercise
their due diligence responsibility, and cause the Company’s officers, directors and
employees to supply all information reasonably requested by any such Inspector in connection
with such registration statement; provided that Records which the Company
determines, in good faith, to be confidential and which it notifies the Inspectors are
confidential shall not be disclosed to the Inspectors unless (i) the disclosure of such
Records is necessary to avoid or correct a misstatement or omission in the registration
statement or (ii) the release of such records is ordered pursuant to a subpoena or other
order from a court of competent jurisdiction; provided further,
however, that any decision not to disclose information pursuant to clause (i) shall
be made after consultation with counsel for the Company and counsel for such Inspectors; and
each holder of Registrable Securities included in such registration statement agrees that it
will, upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give notice to the Company and allow the Company, at the Company’s expense to
undertake appropriate action to prevent disclosure of the Records deemed confidential;




     (15) use its Best Efforts to obtain a cold comfort letter from the Company’s
independent public accountants and an opinion of outside counsel to the Company, each in
customary form and covering such matters of the type customarily covered by cold comfort
letters or opinions of counsel, as the case may be, as (A) WP, if such registration is a
Demand Registration being made at the request of WP pursuant to Section 3(b), (B) the GW
Shareholders, if such registration is a Demand Registration being made at the request of the
GW Shareholders pursuant to Section 3(b), (C) if the foregoing clauses (A) and (B) do not
apply, WP so long as WP is a participant in such underwritten Offering and either (i) holds
at least 75% of the IPO Shares held by it at the time of the IPO Closing or (ii) holds more
of the Securities (in each case assuming exercise of all exchange, conversion and
subscription rights with respect to all securities of the Company then held by it) than any
other holder or (D) if the foregoing clauses (A), (B) and (C) do not apply, the holders of a
Majority Amount of each type of the Registrable Securities being sold reasonably request;




     (16) cooperate with each seller of Registrable Securities and each underwriter
participating in the disposition of such Registrable Securities and their respective counsel
in connection with any filings required to be made with the NASD; and




     (17) use its reasonable efforts to take all other steps necessary to effect the
registration of the Registrable Securities contemplated hereby.



          Each holder of Registrable Securities, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3(c)(4) will forthwith discontinue
disposition of the Registrable Securities until such holder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(c)(4) or until it is advised in
writing (the “Advice”) by the Company that the use of the prospectus may be resumed and has










 



14



received copies of any additional or supplemental filings which are incorporated by reference in
the prospectus, and, if so directed by the Company, such holder will, or will request the managing
underwriter or underwriters, if any, to deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies then in such holder’s possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such notice. In the event
the Company shall give any such notice, the time periods mentioned in Section 3(c)(2) shall be
extended by the number of days during the period from and including the date of the giving of such
notice to and including the date when each seller of Registrable Securities covered by each
registration statement shall have received the copies of the supplemented or amended prospectus
contemplated by Section 3(c)(4) or the Advice.




          (d) Holdback Arrangements.




          (1) Restrictions on Public Sale by Holders of Registrable Securities. To the extent
not inconsistent with applicable law, each holder whose Registrable Securities are included in an
underwritten registration statement agrees not to effect any public sale or distribution of the
securities being registered or a similar security of the Company, or any securities convertible
into or exchangeable or exercisable for such securities, including a sale pursuant to Rule 144
under the Securities Act, during the 14 days prior to, and during the 30-day period beginning on,
the effective date of such registration statement, if and to the extent requested by the managing
underwriter or underwriters of such underwritten public offering, other than pursuant to such
underwritten public offering.




          (2) Restrictions on Public Sale by the Company and Others. The Company and the
Shareholders agree (i) not to effect any public sale or distribution of any securities similar to
those being registered, or any securities convertible into or exchangeable or exercisable for such
securities (other than any such sale or distribution of such securities pursuant to registration of
such securities on Form S-4 or S-8 or any successor forms or comparable foreign forms or any such
sale or distribution of such securities in connection with any merger or consolidation involving
the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of the capital equity
or substantially all of the assets of any other Person), during the 14 days prior to, and during
the 30-day period beginning on, the effective date of any registration statement except as part of
such registration statement; and (ii) that any agreement entered into after the date of this
Agreement pursuant to which the Company issues or agrees to issue any privately placed securities
shall contain a provision under which holders of such securities agree not to effect any public
sale or distribution of any such securities during the periods described in (i) above, in each case
including a sale pursuant to Rule 144 (or any similar provision then in force) under the
Securities Act (except as part of any such registration, if permitted); provided,
however, that the provisions of this Section 3(d)(2) shall not prevent the conversion or
exchange of any securities pursuant to their terms into or for other securities.




          (3) Other Registrations. If the Company has previously filed a registration statement
with respect to any of its Registrable Securities, and if such previous registration has not been
withdrawn or abandoned, the Company will not file or cause to be effected any other registration of
any of its Registrable Securities under the Securities Act (except on Form S-4 or S-8 or any
successor forms or comparable foreign forms), whether on its own behalf or at the











 



15



request of any
holder or holders of Registrable Securities, until a period of at least six months has elapsed from
the effective date of such previous registration (provided that in the case of a Demand
Registration such period shall commence on the date the Company is first served the Notice and
shall continue until at least six months have elapsed from the effective date of such Demand
Registration).




          (e) Registration Expenses. All of the costs and expenses of each registration
hereunder, including, without limitation, all registration and filing fees, all fees and expenses
associated with filings required to be made with the NASD (including, if applicable, the fees and
expenses of any “qualified independent underwriter” as such term is defined in Schedule E of the
By-laws of the NASD, and of its counsel), as may be required by the rules and regulations of the
NASD, fees and expenses of compliance with securities or blue sky laws of any jurisdiction
(including reasonable fees and disbursements of counsel in connection with blue sky qualifications
of the Registrable Securities), printing expenses, messenger and delivery expenses, the Company’s
internal expenses (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties), the fees and expenses incurred in connection with
the listing of the securities to be registered on any securities exchange, and fees and
disbursements of counsel for the Company and its independent certified public accountants
(including the expenses of any special audit or comfort letters required by or incident to such
performance), Securities Act liability insurance (if the Company elects to obtain such insurance),
the fees and expenses of any special experts retained by the Company in connection with such
registration, fees and expenses of other persons retained by the Company, reasonable fees and
expenses of one counsel for the holders of the Registrable Securities in connection with each
registration hereunder (but not including any underwriting fees, discounts or commissions
attributable to the sale of Registrable Securities which shall be for the account of such holders)
and any reasonable out-of-pocket expenses of the holders of the Registrable Securities (or agents
who manage their accounts) (all such expenses being herein called “Registration Expenses”),
will be borne by the Company.




          (f) Indemnification; Contribution.




          (1) Indemnification by the Company. The Company agrees to indemnify
and hold harmless each selling holder of Registrable Securities, its officers, directors, agents,
employees, partners and Affiliates and each Person, if any, who controls such selling holder within
the meaning of Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), from and against any and all losses, claims,
damages,
liabilities and expenses (including reasonable costs of investigation) arising out of or based upon
any untrue statement or alleged untrue statement of a material fact contained in any registration
statement or prospectus relating to the Registrable Securities or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or based upon any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as such losses, claims, damages, liabilities or
expenses arise out of, or are based upon, any such untrue statement or omission based upon
information with respect to such selling holder furnished in writing to the Company by such selling
holder expressly for use therein. The Company also agrees to indemnify any underwriters of the
Registrable Securities, their officers, directors, agents,











 



16



employees, partners and Affiliates and
each Person who controls such underwriters on substantially the same basis as that of the
indemnification of the selling holders provided in this Section 3(f).




          (2) Conduct of Indemnification Proceedings. If any action or proceeding (including
any governmental investigation) shall be brought or asserted against any selling holder (or any of
its officers, directors, agents, employees, partners or Affiliates) or any Person controlling any
such selling holder in respect of which indemnity may be sought from the Company, the Company shall
be permitted, unless in the reasonable judgment of such indemnified party a conflict of interest
may exist between such indemnified party and the Company with respect to such claim, to assume the
defense thereof, including the employment of counsel reasonably satisfactory to such selling
holder, and shall assume the payment of all expenses. Whether or not such defense is assumed by
the Company, the Company shall not be liable for any settlement of any such action or proceeding
effected without its written consent (but such consent will not be unreasonably withheld). The
Company will not consent to entry of any judgment or enter into any settlement which does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a release from all liability in respect of such claim or litigation. If the
Company is not entitled to, or elects not to, assume the defense of a claim, it will not be
obligated to pay the fees and expenses of more than one counsel with respect to such claim, unless
in the reasonable judgment of any indemnified party a conflict of interest may exist between such
indemnified party and any other of such indemnified parties with respect to such claim, in which
event the Company shall be obligated to pay the fees and expenses of such additional counsel or
counsels. Any selling holder entitled to indemnification hereunder agrees to give prompt written
notice to the Company after the receipt by such selling holder of any written notice of the
commencement of any action, suit, proceeding or investigation or threat thereof made in writing for
which such selling holder will claim indemnification or contribution pursuant to this Agreement.




          (3) Indemnification by Holders of Registrable Securities. Each selling holder of
Registrable Securities agrees to indemnify and hold harmless the Company, its officers, directors,
agents, employees, partners and Affiliates, and each Person, if any, who controls the Company
within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to
the same extent as the foregoing indemnity from the Company to the selling holders of Registrable
Securities, but only with respect to information furnished in writing by such selling holder with
respect to such selling holder expressly for use in any registration statement or prospectus
relating to the Registrable Securities which contained a material misstatement of fact
or omission of a material fact, or any amendment or supplement thereto, or any preliminary
prospectus. In no event shall the liability of any selling holder hereunder be greater in amount
than the dollar amount of the proceeds received by such selling holder upon the sale of the
Registrable Securities giving rise to such indemnification obligation. In case any action or
proceeding shall be brought against the Company or its officers, directors, agents, employees,
partners or Affiliates, or any such controlling Person, in respect of which indemnity may be sought
against any selling holder, such selling holder shall have the rights and duties given to the
Company, and the Company or its officers, directors, agents, employees, partners or Affiliates, or
such controlling Person shall have the rights and duties given to such selling holders by Section
3(f)(2). Each selling holder of Registrable Securities also agrees to











 



17



indemnify and hold harmless
underwriters of the Registrable Securities, their officers, directors, agents, employees, partners
and Affiliates, and each Person who controls such underwriters on substantially the same basis as
that of the indemnification of the Company provided in this Section 3(f)(3).




          (4) Contribution. If the indemnification provided for in this Section 3(f) is
unavailable to the Company, the selling holders or the underwriters in respect of any losses,
claims, damages, liabilities or judgments referred to herein, then each such indemnifying party, in
lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities and judgements in such
proportion as is appropriate to reflect the relative fault of the indemnifying parties and
indemnified parties in connection with such statements or omissions which resulted in such losses,
claims, damages, liabilities or judgments, as well as any other relevant equitable considerations.
The relative fault of such indemnifying party and indemnified parties shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission or alleged omission to state a material fact relates to information supplied by
such party, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission.




          The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 3(f)(4) were determined by pro rata allocation or by any other method of allocation
which does not take account of the equitable consideration referred to in the immediately preceding
paragraph. The amount paid or payable by an indemnified party as a result of the losses, claims,
damages, liabilities, or, judgments referred to in the immediately preceding paragraph shall be
deemed to include, subject to the limitations set forth above, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any
such action or claim. Notwithstanding the provisions of this Section 3(f)(4), no underwriter shall
be required to contribute any amount in excess of the amount by which the total price at which the
Registrable Securities underwritten by it and distributed to the public were offered to the public
exceeds the amount of any damages which such underwriter has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission, and no selling
holder shall be required to contribute any amount in excess of the amount by which the total price
at which the Registrable Securities of such selling holder were offered to the public exceeds the
amount of any damages which such selling holder has otherwise been required to pay by reason of
such untrue or alleged untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.




          (g) Participation in Underwritten Registrations. No holder of Registrable Securities
may participate in any underwritten registration hereunder unless such holder (a) agrees to sell
its securities on the basis provided in any underwriting arrangements approved by the holders as
provided herein and (b) completes and executes all questionnaires, powers of attorneys,
indemnities, underwriting agreements and other documents reasonably required under the terms of
such underwriting arrangements and these registration rights.











 



18




          (h) Rule 144 Etc. The Company covenants that it will file any reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by
the Commission thereunder (or, if the Company is not required to file such reports, it will, upon
the request of any holder of Registrable Securities, make publicly available other information so
long as necessary to permit sales under Rule 144, Rule 144A and Regulation S under the Securities
Act) that it will take such further action as the holders of Registrable Securities may reasonably
request, all to the extent required from time to time to enable the holders of Registrable
Securities to sell Registrable Securities without registration under the Securities Act within the
limitation of the exemptions provided by (a) Rule 144, Rule 144A or Regulation S under the
Securities Act, as such Rules or such Regulation may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the Commission.




          (i) Other Registration Rights. The Company will not grant any Person any demand or
piggyback registration rights with respect to its securities other than registration rights that
would not be inconsistent with the terms of this Section 3. The Company will not have the right to
piggyback on any Demand Registration and the Company will not grant any registration rights that
would permit any Person the right to piggyback on any Demand Registration.




          (j) Termination. This Section 3 shall continue in full force and effect until none of
the Securities are Registrable Securities, except that paragraph (f) shall survive any termination
of this Section 3.










 



19




          Section 4. Miscellaneous.




          (a) Stop Transfer Order. The Company may enter a stop transfer order with the
transfer agent or agents of voting securities against the transfer of voting securities except in
compliance with the requirements of this Agreement. The Company agrees to remove promptly any stop
transfer order with respect to certificates for any voting securities that are no longer subject to
the restrictions contained in this Agreement.




          (b) Binding Effect. Unless otherwise provided herein, the provisions of this
Agreement shall be binding upon and accrue to the benefit of the parties hereto and their
respective successors, assigns and transferees.




          (c) Entire Agreement. This Agreement, together with the 1999 Shareholders’ Agreement
and the 1999 Standstill Agreement, represents the entire understanding and agreement between the
parties hereto with respect to the subject matter hereof and supersedes all prior and
contemporaneous agreements, understandings, negotiations and discussions, whether oral or written,
of the parties, including, without limitation, the Amended and Restated Shareholders’ Agreement,
dated as of June 16, 1994, among WP, the GW Shareholders and the Company.




          (d) Amendments, Etc. This Agreement can be amended, supplemented or changed, and any
provision hereof can be waived, only by written instrument signed by the party against whom
enforcement of any such amendment, supplement, modification or waiver is sought.




          (e) Severability. If any provision of this Agreement is invalid or unenforceable, the
balance of this Agreement shall remain in full force and effect and this Agreement shall be
construed in all respects as if such invalid or unenforceable provision were omitted.




          (f) Descriptive Headings. The descriptive headings of this Agreement are inserted for
convenience only and do not constitute a part of this Agreement.




          (g) Notices. All communications provided for under this Agreement shall be in writing
and shall be delivered by hand, by telecopy, telegram or telex, or by mail (registered or certified
mail, postage prepaid, return receipt requested) to the following addresses, or such other
addresses as shall be given by notice delivered hereunder, and shall be deemed to have been given
on the day of such hand delivery thereof or the third business day after such mailing:



If to WPLP, WPOP, WPPN or

the Michael J. Biondi Voting Trust, to such party:



c/o Wasserstein Perella Management Partners, Inc.

31 West 52nd Street

26th Floor

New York, New York 10019











 



20



Telecopier: (212) 969-7836

Attention: W. Townsend Ziebold



with a copy to:



Stikeman, Elliott

Suite 5300

Commerce Court West

Toronto, Ontario

M5L1B9

Telecopier: (416) 947-0866

Attention: Marvin Yontef/Mihkel Voore



and a copy to:



Skadden, Arps, Slate, Meagher & Flom LLP

919 Third Avenue

New York, NY 10022

Telecopier: (212) 735-2000

Attention: Robert Chilstrom/Avinash Ganatra



If to Wechsler, to:



Bradley J. Wechsler

88 East Middle Patent Road

Bedford, New York 10506



with a copy to:



Shearman & Sterling

599 Lexington Avenue

New York, New York 10022

Telecopier: (212) 848-7179

Attention: Peter D. Lyons



If to Gelfond, to:



Richard L. Gelfond

          2 Squabble Lane

Southampton, New York 11969



with a copy to:



Shearman & Sterling

599 Lexington Avenue

New York, New York 10022











 



21



Telecopier: (212) 848-7179

Attention: Peter D. Lyons



If to the Company, to:



Imax Corporation

110 East 59th Street

Suite 2100

New York, New York 10022

Telecopier: (212) 371-5510

Attention: Chief Executive Officer



With a copy to:



Imax Corporation

2525 Speakman Drive

Mississauga, Ontario

L5K 1B1 Canada

Telecopier: (905) 403-6468

Attention: Corporate Secretary



and a copy to:



McCarthy Tétrault

Suite 4700

Toronto Dominion Bank Tower

Toronto Dominion Centre

Toronto, Ontario

M5K 1E6 Canada

Telecopier: (416) 868-0673

Attention: Garth M. Girvan











 



22



and a copy to:



Shearman & Sterling

599 Lexington Avenue

New York, New York 10022

Telecopier: (212) 848-7179

Attention: Peter D. Lyons



or to such other Persons or at such other addresses as shall be furnished by any such party by like
notice given to the other parties of this Agreement.




          (h) Governing Law; Submission to Jurisdiction. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of New York without regard to principles of
conflicts of laws. Each of the parties hereto hereby irrevocably consents to personal jurisdiction
and venue in any court of the State of New York or any Federal court sitting in the Southern
District of New York for the purposes of any suit, action or other proceeding arising out of this
Agreement or any of the agreements or transactions contemplated hereby, which is brought by or
against such party, and hereby agrees that all claims in respect of any such suit, action or
proceeding may be heard and determined in any such court. Each of the parties hereto hereby
irrevocably consents to the service of process of any of the aforementioned courts in any such
suit, action or proceeding by the mailing of copies thereof by registered or certified mail,
postage prepaid, to such party at its address set forth above, such service to become effective ten
(10) days after such mailing. ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY CLAIM OR ACTION
ARISING OUT OF THIS AGREEMENT OR CONDUCT IN CONNECTION WITH THIS AGREEMENT IS HEREBY WAIVED.




          (i) Injunctive Relief. The Company and the Shareholders recognize that in the event
they fail to perform, observe or discharge any of their respective obligations or liabilities under
this Agreement, no remedy at law will provide adequate relief to the injured parties, and agree
that the injured parties shall be entitled to temporary and permanent injunctive relief in any such
case without the necessity of proving actual damages and without being required to post a bond or
other security.




          (j) Termination. This Agreement shall terminate if at any time WP ceases to own at
least 10% of the IPO Shares owned by them at the time of the IPO Closing, except that (i) the
provisions of Section 2(c) shall terminate on April 1, 2001 and (ii) the provisions of Section 3
hereof shall terminate as provided in Section 3(j), except as otherwise provided therein.




          (k) Limitation of Liability. No personal liability or responsibility of either GW
Shareholder or any partner or shareholder of WP shall at any time be enforceable against either GW
Shareholder or any partner or shareholder of WP on account of any representation, warranty,
undertaking, covenant or agreement made by it hereunder, either express or implied, all such











 



23



personal liability, if any, being expressly waived by each party to this Agreement and by all
Persons claiming by, through or under any such party, provided that any party to this
Agreement making claim hereunder may realize upon the Securities held by either the GW Shareholder
and each partner or shareholder of WP at such time for satisfaction of the same.




          (l) Execution in Counterparts. This Agreement may be executed and delivered
(including by facsimile transmission) in counterparts, each of which shall be deemed an original
and all of which shall constitute one and the same instrument.










 



24




          IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed
as of the day and year first above written.




	 	 	 	 	 	 	 
	 	 	WASSERSTEIN PERELLA PARTNERS, L.P.
	 
	 	 	 	 	 	 
	 	 	By	 	WASSERSTEIN PERELLA MANAGEMENT
	 	 	 	 	CK PARTNERS, INC., its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ W. Townsend Ziebold
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: W. Townsend Ziebold 

Title: Vice President
	 
	 	 	 	 	 	 
	 	 	WASSERSTEIN PERELLA
OFFSHORE PARTNERS,
   L.P.
	 
	 	 	 	 	 	 
	 	 	By	 	WASSERSTEIN PERELLA MANAGEMENT
	 	 	 	 	CK PARTNERS, INC., its General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ W. Townsend Ziebold
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: W. Townsend Ziebold
	 

	 	 	 	 	 	Title: Vice President
	 
	 	 	 	 	 	 
	 	 	 	 	WPPN, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ James C. Kingsbury
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: James C. Kingsbury
	 

	 	 	 	 	 	Title: Treasurer and Secretary
	 
	 	 	 	 	 	 
	 	 	 	 	MICHAEL J. BIONDI VOTING TRUST
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ James C. Kingsbury
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: James C. Kingsbury
	 

	 	 	 	 	 	Title: Attorney-in-Fact
	 
	 	 	 	 	 	 
	 	 	 	 	/s/ Richard L. Gelfond
	 	 	 	 	 
	 	 	 	 	Richard L. Gelfond












 



25


	 	 	 	 	 	 	 
	 	 	 	 	/s/ BradleyJ. Wechsler
	 	 	 	 	 
	 	 	 	 	Bradley J. Wechsler
	 
	 	 	 	 	 	 
	 	 	 	 	IMAX CORPORATION
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John M. Davison
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John M. Davison
	 

	 	 	 	 	 	Title: Director
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Garth M. Girvan
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Garth M. Girvan
	 

	 	 	 	 	 	Title: Director