Document:

exv10w4

 

EXHIBIT 10.4

          REGISTRATION
RIGHTS AGREEMENT, dated as of l, 2007 (this “Agreement”), among
Photowatt Technologies Inc., a corporation organized under the Canada Business Corporations Act
(the “Corporation”), and ATS Automation Tooling Systems Inc., a corporation organized under
the Business Corporations Act (Ontario) (“ATS”).

R E C I T A L S

          WHEREAS the Corporation is offering shares of common stock of the Corporation pursuant to an
underwritten public offering (the “Offering”).

          WHEREAS the Corporation and ATS are entering into this Agreement to provide for certain rights
and obligations with respect to the common shares of the Corporation held by ATS.

          NOW, THEREFORE, in consideration of the mutual agreements, covenants and conditions
hereinafter set forth, the parties agree as follows:

          SECTION 1. Definitions. (a) As used in this Agreement, the following terms shall have the following meanings:

          “Affiliate” shall have the meaning specified in Rule 12b-2 under the Exchange Act, as
such rule is currently in effect.

          “Business Day” means any day except a Saturday, Sunday or other day on which
commercial banks in the Province of Ontario are authorized or required by law or executive order to
close.

          “Canadian Prospectus” means a prospectus (including a short form prospectus) prepared
in accordance with applicable Canadian Securities Laws for the purposes of qualifying securities
for distribution or distribution to the public, as the case may be, in any Province or Territory of
Canada.

          “Canadian Securities Commissions” means the applicable securities commission or
securities regulatory authority in each of the Provinces and Territories of Canada.

          “Canadian Securities Laws” means, collectively, the applicable securities laws of each
of the Provinces and Territories of Canada and the respective regulations and rules made under
those securities laws together with all applicable policy statements, blanket orders and rulings of
the Canadian Securities Commissions.

          “Capital Stock” means, with respect to any Person at any time, any and all shares,
interests, participations or other equivalents (however designated, whether voting or non-voting)
of capital stock, partnership interests (whether general or limited), limited liability company
interests or equivalent ownership interests in such Person.

          “Commission” means the U.S. Securities and Exchange Commission or any successor
agency.

 

 

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          “Common Shares” means the shares of common stock of the Corporation and any securities
of the Corporation into which such shares may be converted or exchanged.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder, all as the same shall be in effect from
time to time.

          “Law” means any federal, state, provincial, local or foreign statute, law, ordinance,
regulation, rule, code, order, other requirement or rule of law.

          “New Securities” means any Capital Stock of the Corporation, whether now authorized or
not, and rights, options or warrants to purchase such Capital Stock, and securities of any type
whatsoever that are, or may become, convertible into or exchangeable or exercisable for Capital
Stock of the Corporation; provided that the term “New Securities” does not include (i)
securities of the Corporation issued to its employees, consultants, officers or directors of the
Corporation, or which have been reserved for issuance, pursuant to any employee stock option,
restricted stock, stock purchase, stock bonus plan, or other similar stock agreement or arrangement
approved by the board of directors of the Corporation, (ii) securities of the Corporation issued in
connection with any stock split, stock dividend or recapitalization of the Corporation, (iii)
securities of the Corporation issued upon the conversion or exchange of convertible or exchangeable
securities of the Corporation that are outstanding as of the date of this Agreement, (iv) any
right, option or warrant to acquire any security convertible into or exchangeable or exercisable
for the securities excluded from the definition of New Securities pursuant to subclause (i) above
if issued pursuant to any employee stock option, restricted stock, stock purchase, stock bonus plan
or other similar stock agreement or arrangement approved by the board of directors or (v)
securities of the Corporation outstanding on the date hereof.

          “Permitted Transferee” means a Shareholder who has acquired rights under this
Agreement pursuant to Section 14(b) hereof.

          “Person” means any individual, partnership, firm, corporation, association, trust,
unincorporated organization or other entity, as well as any syndicate or group that would be deemed
to be a person under Section 13(d)(3) of the Exchange Act.

          “Primary Shares” means, at any time, the authorized but unissued Common Shares;
provided, however, that for the purposes of Section 2, the term “Primary Shares”
shall include Common Shares held by officers and directors of the Corporation.

          “Prospectus” means the Corporation’s prospectus included in the Corporation’s
registration statement on Form F-1 (File No. 333-137044), as declared effective by the Commission.

          The terms “register”, “registered” and “registration” shall refer to a
registration effected by preparing and filing a registration statement in compliance with the
Securities Act, and the declaration or ordering of the effectiveness of such registration
statement.

          In addition, unless inconsistent with the context: (i) the term “registration” and any
references to the act of registering include the qualification under Canadian Securities Laws

 

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of a Canadian Prospectus in respect of a distribution or distribution to the public, as the
case may be, of securities; (ii) the term “registered” as applied to any securities includes a
distribution or distribution to the public, as the case may be, of securities so qualified; (iii)
the terms “registration statement” includes a Canadian Prospectus; and (iv) any references to a
registration statement having become effective, or similar references, shall include a Canadian
Prospectus for which a final receipt has been obtained from the relevant Canadian Securities
Commissions.

          “Registrable Shares” means the Common Shares held from time to time by the
Shareholders. For purposes of this Agreement, any Registrable Shares shall cease to be Registrable
Shares (i) when they have been registered under the Securities Act (the registration statement in
connection therewith has been declared effective) and disposed of pursuant to such effective
registration statement, (ii) when they are sold by a Person in a transaction in which the rights
under the provisions of this Agreement are neither transferred nor assigned, or (iii) when they
have been sold or distributed pursuant to Rule 144 (including, without limitation, Rule 144(k)).

          “Registration Expenses” means all out-of-pocket expenses incident to the Corporation’s
performance of, or compliance with, Sections 2, 3 and 4, including, without limitation, all
registration and filing fees (including filing fees with respect to the National Association of
Securities Dealers, Inc.), all fees and expenses of complying with applicable securities Laws
(including reasonable fees and disbursements of underwriters’ counsel in connection with any “blue
sky” memorandum or survey), all printing expenses, all internal expenses, all “road show” and
marketing expenses, all listing fees, all registrars’ and transfer agents’ fees, the fees and
disbursements of counsel for the Corporation and of its independent public accountants, including
the expenses of any special audits and/or “comfort” letters required by or incident to such
performance and compliance, the reasonable fees and disbursements of one outside counsel retained
by the holders holding Common Shares being registered (which counsel shall be satisfactory to the
holders of a majority of the Registrable Shares being registered), but excluding Selling Expenses,
if any, which shall be borne by the holders holding Common Shares being registered, in all cases.

          “Rule 144” shall mean Rule 144 as promulgated by the Commission under the Securities
Act, as such Rule may be amended from time to time, or any similar successor rule that may be
promulgated by the Commission.

          “Rule 145” shall mean Rule 145 as promulgated by the Commission under the Securities
Act, as such Rule may be amended from time to time, or any similar successor rule that may be
promulgated by the Commission.

          “Rule 415” shall mean Rule 415 as promulgated by the Commission under the Securities
Act, as such Rule may be amended from time to time, or any similar successor rule that may be
promulgated by the Commission.

          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission promulgated thereunder, all as the same shall be in effect from time
to time.

 

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          “Selling Expenses” means all underwriting discounts, commissions or brokers’
commissions and applicable transfer taxes incurred in connection with the sale or other disposition
of Common Shares or other securities for or on behalf of a holder’s account.

          “Shareholder” means ATS, or any holder of Common Shares to whom the registration
rights conferred by this Agreement have been transferred in compliance with Section 14 hereof, so
long as such Person holds Common Shares (each such Person a “Shareholder” and, collectively, the
“Shareholders”).

          “Specified Assignee” means a Shareholder who has acquired rights under this Agreement
pursuant to Section 14(a) hereof.

          “Subsidiary” of any party shall mean any corporation, partnership, joint venture,
association or other business entity of which such party now or hereafter owns, directly or
indirectly, securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other governing body thereof.

          “Voting Interest” of the Corporation means one Common Share and any other share or
unit of Capital Stock issued by the Corporation, the holders of which are ordinarily, in the
absence of contingencies, entitled to one vote in the election of the Corporation’s directors (or
Persons performing similar functions), or the approval of its management and policies, even if the
right to vote has been suspended by the occurrence of a contingency.

          SECTION 2. Request for Registration. (a) At any time after the date 180 days after the date of the Prospectus, if the Corporation
shall receive from any Shareholder (in such capacity, a “Requesting Shareholder”), a
written request that the Corporation effect any registration under the Securities Act, and/or,
mutatis mutandis, under Canadian Securities Laws, with respect to the sale and
distribution of all or a part representing not less than 5% of the Registrable Shares in a public
offering (calculated at the time that the written request is received by the Corporation), then if
(x) in the case of a request in relation to the Securities Act, the then outstanding Commission has
not prior to the date of such request (the “Demand Date”) declared effective a shelf registration
statement with respect to all of the Registrable Shares (a “Shelf Registration Statement”) pursuant
to Rule 415, or (y) in the case of a request in relation to Canadian Securities Laws, the Canadian
Securities Commissions have not prior to the date of such request (also, the “Demand Date”) issued
a final receipt for a base shelf prospectus with respect to all of the Registrable Shares pursuant
to National Instrument 44-102 (Shelf Distributions) which is effective as of the Demand Date, the
Corporation will:

     (i) promptly give written notice of the proposed registration, qualification or
compliance to each of the other Shareholders (collectively, the “Non-Requesting
Shareholders”); and

     (ii) as soon as practicable but in any event within 90 days, use its reasonable best
efforts to effect such registration (including, without limitation, the execution of an
undertaking to file post-effective amendments, appropriate qualification under applicable
securities Laws, including, without limitation, “blue sky” laws or Canadian Securities Laws,
and appropriate compliance with applicable regulations issued under the Securities

 

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Act or Canadian Securities Laws, as the case may be) as may be so requested and as
would permit or facilitate the sale and distribution of all or such portion of such
Registrable Shares as are specified in such request, together with all or such portion of
the Registrable Shares of the Non-Requesting Shareholder(s) joining in such request as are
specified in a written request received by the Corporation within ten (10) Business Days
after written notice from the Corporation is given under clause 2(a)(i) above;
provided that the Corporation shall not be obligated to effect, or take any action
to effect, any such registration pursuant to this Section 2:

     (A) for a period of up to 120 days, if the board of directors of the
Corporation (1) determines in good faith that (a) it is in possession of material,
nonpublic information concerning an acquisition, merger, recapitalization,
consolidation, reorganization, financing or other material transaction by or of the
Corporation or concerning pending or threatened litigation, and (b) disclosure of
such information would jeopardize any such transaction or litigation and would be
seriously detrimental to the Corporation and (2) delivers written notice to the
Requesting Shareholders and Non-Requesting Shareholders that, in its good faith
judgment, it would not be in the best interests of the shareholders of the
Corporation for such registration to be effected; provided that the
Corporation shall not defer its obligation in this manner more than once in any
twelve-month period;

     (B) in any particular jurisdiction in which the Corporation would be required
to execute a general consent to service of process in effecting such registration,
qualification or compliance, unless the Corporation is already subject to service in
such jurisdiction and except as may be required by the Securities Act or applicable
rules or regulations thereunder or Canadian Securities Laws;

     (C) with respect to any Shareholder (together with its Permitted Transferees
and Specified Assignees), after the Corporation has effected four (4) registrations
pursuant to this Section 2(a); provided, however, that the
substantially concurrent registration of Registrable Shares under the Securities Act
and qualification for distribution of Registrable Shares under Canadian Securities
Laws shall be counted as only one registration of Registrable Shares; provided
further, however, that any request under Section 2(a) shall be deemed
not to have been made if (i) it does not result in a registration that is declared
or ordered effective by the applicable governmental authorities or agencies,
including without limitation, the Commission, and that remains effective for not
less than 30 days (or such shorter period as will terminate when all Registrable
Shares covered by such registration have been sold or withdrawn), or, if such
registration relates to an underwritten offering, such longer period, if any, as in
the opinion of counsel for the underwriters a prospectus is required by law to be
delivered in connection with sales of the Registrable Shares by an underwriter or
dealer (in either case, such period being the “Demand Period”), (ii) (x)
during the Demand Period such registration is terminated by any stop order,
injunction or other order or requirement of any governmental agency or court or (y)
the conditions to closing specified in the underwriting agreement, if any, entered
into

 

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in connection with such registration are not satisfied other than by reason of
a wrongful act, misrepresentation or breach of an applicable underwriting agreement
by the Holders (as defined below), or (iii) the Requesting Shareholders withdraw
their request for registration and bear the Registration Expenses pro
rata on the basis of the number of their shares requested for registration;
or

     (D) if on or prior to the Demand Date, the Corporation has filed with the
Commission a Shelf Registration Statement on Form F-3, and with the Canadian
Securities Commissions a base shelf prospectus pursuant to National Instrument
44-102, covering the Registrable Shares which is being diligently pursued by the
Corporation with the Commission and the Canadian Securities Commissions as of the
Demand Date.

The registration statement filed pursuant to the request of the Requesting Shareholders and any
Non-Requesting Shareholder may, subject to the provisions of Section 2(b) below, include Primary
Shares.

          (b) The Corporation shall be entitled to select the managing underwriter of the underwriting;
provided, however, that any such managing underwriter shall be an investment
banking firm of nationally recognized reputation reasonably acceptable to the selling Shareholders
representing a majority of the Registrable Shares to be included in such registration. The
Requesting Shareholders and the Non-Requesting Shareholders proposing to distribute their
securities through such underwriting (collectively, the “Holders”) shall enter into an
underwriting agreement in customary form with the managing underwriter or underwriters selected for
such underwriting reasonably acceptable to the Corporation. Notwithstanding any other provision of
this Section 2, if the managing underwriter advises the Requesting Shareholders in writing that the
inclusion of all Registrable Shares and/or Primary Shares proposed to be included in such
registration would interfere with the successful marketing (including pricing) of the Registrable
Shares proposed to be included in such registration, then the number of Registrable Shares and/or
Primary Shares to be included in such registration shall be reduced to such number as shall, in the
managing underwriter’s opinion, not be likely to have such an effect, which shall be included in
such registration in the following order:

     (i) first, the Registrable Shares requested to be included in such registration that
are held by the Requesting Shareholders (or, if necessary, such Registrable Shares
pro rata among the holders thereof based upon the number of Registrable
Shares requested to be registered by each such holder);

     (ii) second, the Registrable Shares requested to be included in such registration that
are held by the Non-Requesting Shareholders (or, if necessary, such Registrable Shares
pro rata among the holders thereof based upon the number of Registrable
Shares requested to be registered by each such holder); and

     (iii) third, the Primary Shares.

          No Registrable Shares or Primary Shares excluded from the underwriting by reason of the
managing underwriter’s marketing limitation shall be included in such registration.

 

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          (c) In the event that a registration is requested under this Section 2 and each of the
Requesting Shareholders making such request later determine not to sell their Registrable Shares in
connection with the registration requested, then the Requesting Shareholders shall give prompt
notice to the Corporation and the other Shareholders, as applicable, that the registration
requested is no longer required and the request is thereby withdrawn. Upon receipt of such notice,
the Corporation shall cease all efforts to secure registration and shall take all action necessary
and reasonably practicable to prevent the commencement of effectiveness for any registration
statement that it is preparing or has prepared in connection with the withdrawn request, and the
Requesting Shareholders shall bear the Registration Expenses pro rata on the basis
of the number of their shares requested for registration.

          SECTION 3. Piggyback Registration. (a) If the Corporation at any time proposes to register any securities under the Securities
Act that would permit registration of Registrable Shares for sale to the public under the
Securities Act, or, mutatis mutandis, under the Canadian Securities Laws (whether
for its own account or for the account of its shareholders), the Corporation will, each such time,
give prompt written notice to all holders of Registrable Shares of its intention to do so,
describing such securities and specifying the form and manner and the other relevant facts involved
in such proposed registration (including, without limitation, whether or not such registration will
be in connection with an underwritten offering of Common Shares and, if so, the identity of the
managing underwriter and whether such offering will be pursuant to a “best efforts” or “firm
commitment” underwriting). Upon the written request of any holder of Registrable Shares in this
section (a “Requesting Shareholder”) to include Registrable Shares in such registration (which
request (i) must be delivered to the Corporation within 20 days after delivery by the Corporation
of any notice pursuant to this Section 3(a), (ii) shall specify the number of Registrable Shares
proposed to be included in such registration and (iii) shall state the intended method of
disposition of such Registrable Shares), the Corporation shall use its reasonable best efforts to
cause all such Registrable Shares to be included in such registration on the same terms and
conditions as the securities otherwise being sold in such registration; provided,
however, that:

     (i) if, at any time after giving such written notice of its intention to register any
of such securities proposed to be registered by the Corporation and prior to the effective
date of the registration statement filed in connection with such registration and/or the
issuance of a receipt for a final prospectus under Canadian Securities Laws, the Corporation
shall determine for any reason not to register such securities, the Corporation may, at its
election, give written notice of such determination to each Requesting Shareholder and,
thereupon, the Corporation shall be relieved of its obligation to register any Registrable
Shares in connection with such registration (but not of its obligation to pay the
Registration Expenses in connection therewith to the extent provided in Section 6 below);
and

     (ii) if (A) the registration so proposed by the Corporation involves an underwritten
offering of the securities to be so registered, to be distributed by or through one or more
underwriters of nationally recognized standing under underwriting terms appropriate for such
a transaction, and (B) the managing underwriter of such underwritten offering shall advise
the Corporation in writing that, in its judgment, the number of Registrable Shares and any
other securities proposed to be included in such

 

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offering by the Corporation should be limited (1) due to market conditions or (2)
because inclusion of all Registrable Shares proposed to be included in such registration is
reasonably likely to have a significant adverse effect on the successful marketing
(including pricing) of the Primary Shares proposed to be registered by the Corporation, then
the Corporation will promptly advise each such Requesting Shareholder thereof and may
require, by written notice to each such holder accompanying such advice, that, to the extent
necessary to meet such limitation, the number of Primary Shares and Registrable Shares
proposed to be included in such registration shall be reduced to such number as shall, in
the managing underwriter’s opinion, not be likely to have such an effect, which shall be
included in such registration in the following order:

     (x) first, the Primary Shares; and

     (y) second, the Registrable Shares requested to be included in such
registration (or, if necessary, such Registrable Shares pro rata
among the holders thereof based upon the number of Registrable Shares requested to
be registered by each such holder).

          (b) The Corporation shall not be obligated to effect any registration of Registrable Shares
under this Section 3 that is incidental to the registration of any of its securities in connection
with any merger, acquisition, exchange offer, transaction of the type specified in Rule 145(a),
dividend reinvestment plan or stock option, restricted stock or other employee benefit plan.

          (c) The Corporation shall not be obligated to effect any registration of Registrable Shares
under this Section 3 after the Corporation has effected four (4) registrations of Registrable
Shares pursuant to this Section 3; provided, however, that the substantially
concurrent registration of Registrable Shares under the Securities Act and qualification for
distribution of Registrable Shares under Canadian Securities Laws shall be counted as only one
registration of Registrable Shares; provided further, however, that any
registration under Section 3 shall be deemed not to have been effected if (i) it does not result in
a registration that is declared or ordered effective by the applicable governmental authorities or
agencies, including without limitation, the Commission, and that remains effective for not less
than 30 days (or such shorter period as will terminate when all Registrable Shares covered by such
registration have been sold or withdrawn), or, if such registration relates to an underwritten
offering, such longer period, if any, as in the opinion of counsel for the underwriters a
prospectus is required by law to be delivered in connection with sales of the Registrable Shares by
an underwriter or dealer (in either case, such period being the “Demand Period”), (ii) (x)
during the Demand Period such registration is terminated by any stop order, injunction or other
order or requirement of any governmental agency or court or (y) the conditions to closing specified
in the underwriting agreement, if any, entered into in connection with such registration are not
satisfied other than by reason of a wrongful act, misrepresentation or breach of an applicable
underwriting agreement by the Requesting Shareholders, (iii) the Requesting Shareholders withdraw
their request for registration of Registrable Shares, or (iv) more than 90% of the aggregate number
of all Registrable Shares requested to be included in such registration are excluded from the
offering pursuant to Section 3(a)(ii).

 

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          SECTION 4. Shelf Registration. The Corporation shall, at the request of a Shareholder owning at least 35% of the
Registrable Shares, use its reasonable best efforts to qualify for registration on Form F-3 or any
comparable or successor form or forms or the Canadian shelf prospectus system. If the Corporation
has qualified for the use of Form F-3 or the Canadian shelf prospectus system, the Corporation
shall, promptly after the request of a Shareholder use its reasonable best efforts to file with the
Commission and/or the Canadian Securities Commissions, as the case may be, and make and keep
effective, until all Registrable Shares have been sold by the Shareholder, a shelf registration
statement pursuant to Rule 415 and/or the shelf registration provisions of National Instrument
44-102, as the case may be, with respect to all of the Registrable Shares. Unless otherwise
requested in writing by the Shareholder, the Corporation shall include the Registrable Shares in
the first registration statement on Form F-3 or shelf prospectus filed by the Corporation following
the date hereof. The Corporation shall not be obligated to qualify, or to take any action to
qualify, for registration pursuant to this Section 4 if the offering size would be for a value of
less than U.S.$3,000,000.

          SECTION 5. Expenses. Except as provided for in Section 2(a)(ii)(C) and Section 2(c), all Registration Expenses
incurred in connection with any registration, qualification or compliance pursuant to this
Agreement shall be borne by the Corporation, and all Selling Expenses shall be borne by the holders
of the securities so registered pro rata on the basis of the number of their shares
so registered.

          SECTION 6. Holdback Agreement. (a) If the Corporation at any time shall register Common Shares under the Securities Act
pursuant to Section 2 or 3 hereof for sale to the public, any Shareholders that participate in such
registration shall not sell publicly, or otherwise dispose publicly of, any Registrable Shares
(other than those Common Shares included in such registration pursuant to Section 2 or 3 hereof)
without the prior written consent of the Corporation, for a period as shall be determined by the
relevant managing underwriters. The Corporation shall obtain the agreement of any Person permitted
to sell shares of stock in such registration to be bound by and to comply with this Section 7 as if
such Person were a Shareholder hereunder.

          (b) If the Corporation shall at any time pursuant to Section 2 or 3 of this Agreement register
under the Securities Act Registrable Shares for sale to the public pursuant to an underwritten
offering, the Corporation shall not effect any public sale or distribution of securities similar to
those being registered (excluding any transaction of the type identified or contemplated in Section
3(b) above), or any securities convertible into or exercisable or exchangeable for such securities,
for such period as shall reasonably be determined by the managing underwriters.

          SECTION 7. Preparation and Filing. (a) If and whenever the Corporation is under an obligation pursuant to the provisions of this
Agreement to use its reasonable best efforts to effect the registration of any Registrable Shares,
the Corporation shall, with respect to such registration (which, for the avoidance of doubt, shall
be a registration in the jurisdiction or jurisdictions requested by the Requesting Shareholder
pursuant to Section 2(a) in the case of a registration under Section 2 hereof), as expeditiously as
is reasonable:

 

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    (i) prepare and file a registration statement, in the case of a registration request
pursuant to Section 2 within 90 days of such request, under the Securities Act or similar
such document under applicable Canadian Securities Laws that registers such Registrable
Shares to become and remain effective for a period of 30 days or, if earlier, until all of
such Registrable Shares have been disposed of; provided, however, that (i)
such 30 day period shall be extended for a period of time equal to the period the holder
refrains from selling any securities included in such registration at the request of an
underwriter of Common Shares (or other securities) of the Corporation; and (ii) in the case
of any registration of Registrable Shares on Form F-3 or the Canadian shelf prospectus
system, such 30 day period shall be extended, if necessary, to keep the registration
statement effective until the earlier of the date that all such Registrable Shares are sold
or the five year anniversary of the date of filing, provided that Rule 415 or any successor
rule under the Securities Act or any corresponding rule or regulation under Canadian
Securities Laws permits an offering on a continuous or delayed basis, and provided further
that applicable rules under the Securities Act or other applicable securities laws governing
the obligation to file a post effective amendment permit, in lieu of filing a post-effective
amendment that (I) includes any prospectus required by Section 10(a)(3) of the Securities
Act or (II) reflects facts or events representing a material or fundamental change in the
information set forth in the registration statement, the incorporation by reference of
information required to be included as described in (I) and (II) above to be contained in
periodic reports filed pursuant to Section 13 or 15(d) of the Exchange Act or corresponding
continuous disclosure requirements under Canadian Securities Laws in the registration
statement;

    (ii) prepare and file with the Commission or with the applicable Canadian Securities
Commissions, as the case may be, such amendments (including post-effective amendments) and
supplements to such registration statement or similar such document under applicable
Canadian Securities Laws and the prospectus relating thereto as may be necessary, or, in the
opinion of the managing underwriter, advisable to keep such registration statement or
similar such document effective for at least a period of 30 days or, if earlier, until all
of such Registrable Shares have been disposed of, and to comply with the provisions of the
Securities Act or applicable Canadian Securities Laws with respect to the sale or other
disposition of such Registrable Shares;

    (iii) use its reasonable best efforts to register or qualify such Registrable Shares
under such other securities or “blue sky” Laws of such jurisdictions as the holders of the
Registrable Shares reasonably request and do any and all other acts and things which may be
reasonably necessary or advisable to enable such holders to consummate the disposition in
such jurisdictions of such holders’ Registrable Shares; provided, however,
that the Corporation will not be required (A) to qualify generally to do business, subject
itself to general taxation or consent to general service of process in any jurisdiction
where it would not otherwise be required to do so but for this paragraph (iii) or (B) to
provide any material undertaking or make any changes in its bylaws or certificate of
incorporation which the board of directors of the Corporation determines to be contrary to
the best interests of the Corporation;

 

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    (iv) furnish without charge to each seller of such Registrable Shares and other
securities such number of conformed copies of such registration statement under the
Securities Act, or similar such document under applicable Canadian Securities Laws and of
each such amendment and supplement thereto (in each case including all exhibits), such
number of copies of the prospectus included in such registration statement or similar such
document (including each preliminary prospectus), in conformity with the requirements of the
Securities Act or applicable Canadian Securities Laws, as the case may be, such documents
incorporated by reference in such registration statement or prospectus, and such other
documents, as such seller may reasonably request in order to facilitate the sale or
disposition of such Registrable Shares or other securities;

    (v) furnish to each seller of Registrable Shares a signed counterpart, addressed to
such seller, of (A) an opinion of counsel reasonably acceptable to a majority of selling
holders for the Corporation in customary form, scope and substance, dated the effective date
of such registration statement or similar such document (or, if such registration includes
an underwritten public offering, dated the date of the closing under the underwriting
agreement), received by the Corporation in connection with such registration statement, and
(B) “comfort” letters signed by the independent public accountants in customary form, scope
and substance who have issued a report on the Corporation’s financial statements included in
such registration statement or similar such document received by the Corporation in
connection with such registration statement or similar such document;

    (vi) immediately notify each seller of Registrable Shares and other securities covered
by such registration statement at any time when a prospectus relating thereto is required to
be delivered under the Securities Act or applicable Canadian Securities Laws, of the
happening of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact or omits to
state any material fact required to be stated therein or necessary to make the statements
therein not misleading in the light of the circumstances then existing or if it is necessary
to amend or supplement such prospectus to comply with Law, and at the request of any such
seller prepare and furnish without charge to such seller a reasonable number of copies of a
supplement to or an amendment of such prospectus as may be necessary so that, as thereafter
delivered to the purchasers of such Registrable Shares or other securities, such prospectus
shall not include an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing and shall otherwise comply in all material
respects with Law and so that such prospectus, as amended or supplemented, will comply with
Law;

    (vii) otherwise use its best efforts to comply with all applicable rules and
regulations of the Commission, or the applicable rules and regulations of any Canadian
Securities Commissions, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least 12 months, beginning with
the first month of the first fiscal quarter after the effective date of such registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act;

 

12

    (viii) use its best efforts to list such Registrable Shares on each securities exchange
on which the Common Shares are then listed, if such Registrable Shares are not already so
listed and if such listing is then permitted under the rules of such exchange, and provide a
transfer agent and registrar and a CUSIP number for such Registrable Shares not later than
the effective date of such registration statement under the Securities Act, or similar such
document under applicable Canadian Securities Laws;

    (ix) deliver to any underwriter to which any holder of Registrable Shares may sell such
Registrable Shares in connection with any such registration (and to any direct or indirect
transferee of any such underwriter) certificates evidencing such shares without bearing any
restrictive legend;

    (x) make every reasonable effort to prevent or obtain the withdrawal of any stop order
or other order suspending the use of any preliminary or final prospectus or suspending any
qualification of the Registrable Shares at the earliest possible moment;

    (xi) make such representations and warranties to the holders of Registrable Shares
being registered, and the underwriters or agents, if any, in form, substance and scope as
are customarily made by issuers in secondary underwritten public offerings; and

    (xii) enter into such customary agreements (including underwriting and indemnification
agreements) and cooperate with requests reasonably made by the holders of at least a
majority of any Registrable Shares being sold or the managing underwriter or agent, if any,
to expedite or facilitate the registration and disposition of such Registrable Shares.

The Corporation may require each seller of Registrable Shares as to which any registration is being
effected to furnish the Corporation with such information regarding such seller and the
distribution of such securities as the Corporation may from time to time reasonably request and as
shall be required by Law or by the Commission or applicable Canadian securities regulatory
authorities, as the case may be, in connection therewith.

          (b) Each holder of Registrable Shares, upon receipt of any notice from the Corporation of any
event of the kind described in Section 8(a)(vi) hereof, shall forthwith discontinue disposition of
the Registrable Shares pursuant to the registration statement under the Securities Act, or similar
such document under applicable Canadian Securities Laws covering such Registrable Shares until such
holder’s receipt of the copies of the supplemented or amended prospectus contemplated by Section
8(a)(vi) hereof, and, if so directed by the Corporation, such holder shall deliver to the
Corporation all copies, other than permanent file copies then in such holder’s possession, of the
prospectus covering such Registrable Shares at the time of receipt of such notice.

          (c) In connection with the preparation and filing of each registration statement registering
Registrable Shares under the Securities Act, or similar such document under applicable Canadian
Securities Laws, the Corporation will give the Shareholders on whose behalf such Registrable Shares
are to be so registered their respective counsel and accountants and any underwriters, the
opportunity to review and comment on such registration statement or

 

13

prospectus, included therein or filed with the Commission or with any Canadian securities
regulatory authority, and each amendment thereof or supplement thereto, and will give each of them
such access to its books and records and such opportunities to discuss the business of the
Corporation with its officers and the independent public accountants who have issued a report on
its financial statements as shall be reasonably necessary, in the opinion of such Shareholders and
such underwriters or their respective counsel, to conduct a reasonable investigation within the
meaning of the Securities Act or applicable Canadian Securities Laws, as the case may be.

          (d) In connection with the sale of Registrable Shares registered pursuant to Section 2 above,
if requested in writing by the Shareholders and as reasonably required or necessary to complete the
sale, members of the Corporation’s management shall participate in customary “road shows” and
question and answer meetings with potential purchasers of such Registrable Shares in connection
with offers and sales of such Registrable Shares.

          (e) It is understood that in any underwritten offering of Registrable Shares in addition to
the Common Shares (the “initial shares”) the underwriters have committed to purchase, the
underwriting agreement may grant the underwriters an option to purchase a number of additional
Common Shares (the “option shares”) equal to up to 15% of the initial shares (or such other
maximum amount as the National Association of Securities Dealers, Inc. may then permit), solely to
cover over-allotments. The Common Shares proposed to be sold by the Corporation and the Holders
shall be allocated between initial shares and option shares as agreed or, in the absence of
agreement, allocated pursuant to Section 3(a)(ii) in the event of a registration pursuant Section 3
hereof or allocated pursuant to Section 2(b) in the event of a registration pursuant to Section 2
hereof. The number of initial shares and option shares to be sold by selling holders shall be
allocated pro rata among all such holders on the basis of the relative number of
Common Shares and other securities each such holder has requested to be included in such
registration.

          SECTION 8. Indemnification; Contribution. (a) In the event of any registration of any equity securities of the Corporation under the
Securities Act or applicable Canadian Securities Laws, the Corporation will, and hereby does agree
to, indemnify and hold harmless, in the case of any registration statement or prospectus filed
pursuant to Section 2, 3 or 4 hereof or any related preliminary prospectus, issuer free writing
prospectus (as defined in Rule 433(h) under the Securities Act), or issuer information (as defined
in Rule 433(h) under the Securities Act) which issuer information is required to be filed pursuant
to Rule 433(d) under the Securities Act, the seller of any Registrable Shares covered by such
registration statement or prospectus or any related preliminary prospectus or free writing
prospectus, its respective directors and officers, partners and members, each other Person who
participates as an underwriter in the offering or sale of such securities, and each other Person,
if any, who controls such seller or any such underwriter within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages, liabilities
and expenses, to which they or any of them may become subject under the Securities Act, applicable
Canadian Securities Laws or otherwise, insofar as such losses, claims, damages, liabilities or
expenses (or actions or proceedings in respect thereof) arise out of or are based upon (i) any
untrue statement or alleged untrue statement of any material fact contained in any registration
statement or prospectus under which such securities were registered under the Securities Act, any
related preliminary prospectus or free writing prospectus, or any preliminary prospectus or final
prospectus filed

 

14

with applicable Canadian Securities Commissions, or any amendment or supplement thereto, or
any document incorporated by reference therein, or (ii) 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; provided, however, that the Corporation shall not be liable in any
such case to the extent that any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement, any such preliminary
prospectus, final prospectus or amendment or supplement thereto, in reliance upon and in conformity
with written information furnished to the Corporation for use in the preparation thereof by such
seller or underwriter, as the case may be, and identified as such. This indemnity shall be in
addition to any liability the Corporation may otherwise have. Such indemnity shall remain in full
force and effect regardless of any investigation made by or on behalf of such seller or any such
director or officer, underwriter or controlling Person and shall survive the transfer of such
securities by such seller.

          (b) The Corporation may require, as a condition to including any Registrable Shares in any
registration statement or prospectus filed pursuant to Section 2, 3 or 4 hereof, that the
Corporation shall have received an agreement satisfactory to it from (i) the prospective seller of
such securities, to indemnify and hold harmless (in the same manner and to the same extent as set
forth in Section 9(a), except that any such prospective seller shall not in any event be liable to
the Corporation pursuant thereto for an amount in excess of the net proceeds of the sale of such
prospective seller’s Registrable Shares so to be sold) the Corporation, each director of the
Corporation and each of the Corporation’s officers who signed the registration statement or
prospectus, each such underwriter of such securities, and each other Person, if any, who controls
the Corporation or any such underwriter within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, and (ii) each such underwriter of such securities, to indemnify and
hold harmless (in the same manner and to the same extent as set forth in Section 9(a) above) the
Corporation, each officer who signed the registration statement or prospectus and each director of
the Corporation, each prospective seller, and each other Person, if any, who controls the
Corporation or any such prospective seller within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act, with respect to any untrue statement in or omission from such
registration statement, any preliminary prospectus, final prospectus, or any amendment or
supplement thereto, if such untrue statement or omission was made in reliance upon and in
conformity with written information furnished by such prospective seller or such underwriter, as
the case may be, to the Corporation for use in the preparation of such registration statement,
preliminary prospectus, final prospectus, amendment or supplement, and identified as such. Such
indemnity shall remain in full force and effect regardless of any investigation made by or on
behalf of the Corporation or any such director, officer or controlling Person and shall survive the
transfer of such securities by such seller.

          (c) Promptly after receipt by an indemnified party of notice of the commencement of any action
or proceeding (including any governmental investigation) involving a claim referred to in either
Section 9(a) above or (b) above, such indemnified party will, if a claim in respect thereof is to
be made against an indemnifying party, give written notice to the latter of the commencement of
such action; provided, however, that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations under the preceding
provisions of this Section 9, except to the extent that the

 

15

indemnifying party is materially prejudiced by such failure to give notice. In case any such
action is brought against an indemnified party, the indemnifying party shall be entitled to assume
the defense thereof, jointly with any other indemnifying party similarly notified, to the extent
that it may wish, and after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party will not be liable to such
indemnified party for any legal or other expenses subsequently incurred by the indemnified party in
connection with the defense thereof. If, in the indemnified party’s reasonable judgment, a
conflict of interest between such indemnified party and indemnifying parties may exist in respect
of such claim, the indemnified party shall be entitled to participate in the defense thereof and
the indemnifying party shall be liable for the fees and expenses of one but not more than one
counsel for all sellers of Registrable Shares and one but not more than one counsel for the
underwriters in connection with any one action or separate but similar or related actions.

          (d) If the indemnification provided for in the foregoing clauses (a), (b) and (c) of this
Section 9 is unavailable to the indemnified parties in respect of any losses, claims, damages or
liabilities referred to therein, then each indemnifying party shall contribute to the amounts paid
or payable by such indemnified parties as a result of such losses, claims, damages or liabilities
(i) as between the Corporation and the holders of Registrable Shares covered by a registration
statement, on the one hand, and the underwriters, on the other, in such proportion as is
appropriate to reflect the relative benefits received by the Corporation and such holders, on the
one hand, and the underwriters, on the other, from the offering of the Registrable Shares, or if
such allocation is not permitted by applicable law, in such proportion as is appropriate to reflect
not only the relative benefits but also the relative fault of the Corporation and such holders, on
the one hand, and of the underwriters, on the other, in connection with the statements or omissions
that resulted in such losses, claims, damages or liabilities, as well as any other relevant
equitable considerations, and (ii) as between the Corporation, on the one hand, and each holder of
Registrable Shares covered by a registration statement or prospectus, on the other, in such
proportion as is appropriate to reflect the relative fault of the Corporation and of each such
holder in connection with such statements or omissions, as well as any other relevant equitable
considerations. The relative benefits received by the Corporation and such holders, on the one
hand, and the underwriters, on the other, shall be deemed to be in the same proportion as the total
proceeds from the offering (net of underwriting discounts and commissions but before deducting
expenses) received by the Corporation and such holders bear to the total underwriting discounts and
commissions received by the underwriters. The relative fault of the Corporation and such holders,
on the one hand, and of the underwriters, on the other, 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 the Corporation and
such holders or by the underwriters. The relative fault of the Corporation, on the one hand, and
of each such holder, on the other, shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of 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.

          (e) The Corporation and the holders of Registrable Shares agree that it would not be just and
equitable if contribution pursuant to Section 9(d) were determined by pro rata
allocation (even if the underwriters were treated as one entity for such purpose) or by any other
method of allocation that does not take account of the equitable considerations referred to in the

 

16

next preceding paragraph. Notwithstanding the provisions of Section 9(d), no holder of
Registrable Shares shall be required to contribute any amount in excess of the amount by which the
total price at which the Registrable Shares of such holder were offered to the public exceeds the
amount of any damages that such 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. The
obligation of the holders of Registrable Shares to contribute pursuant to this Section 9 is several
in the proportion that the proceeds of the offering received by such holder bears to the total
proceeds of the offering received by all holders and not joint.

          SECTION 9. Information by Holders of Registrable Shares. Each holder of Registrable Shares shall furnish to the Corporation such written information
regarding such Person and the distribution proposed by such Person as the Corporation may
reasonably request and as shall be reasonably required in connection with any registration,
qualification or compliance referred to in this Agreement.

          SECTION 10. Exchange Act Compliance. The Corporation shall comply with all of the reporting requirements of the Exchange Act
applicable to it and shall comply with all other public information reporting requirements of the
Commission which are conditions to the availability of Rule 144 for the sale of the Common Shares.
The Corporation shall cooperate with each holder of Registrable Shares in supplying such
information as may be necessary for such holder to complete and file any information reporting
forms presently or hereafter required by the Commission as a condition to the availability of Rule
144.

          SECTION 11. Termination. This Agreement shall terminate upon the earlier of (a) the date on which there are no
longer any Registrable Shares outstanding (b) the date on which all Common Shares owned by the
Shareholders can be sold without restriction in accordance with Rule 144 and under applicable
Canadian Securities Laws, rules and regulations, and (c) l, 2016. The rights and obligations
hereunder of the Shareholders shall terminate at such time when neither they nor any of their
respective Specified Assignees hold Registrable Shares, provided that the provisions of
Section 9 hereof, the rights of any party hereto with respect to the breach of any provision
hereof, and any obligation accrued as of the date of termination shall survive the termination of
this Agreement.

          SECTION 12. Successors and Assigns. This Agreement shall bind and inure to the benefit of the Corporation and the Shareholders
and, subject to Section 14 below, their respective successors and assigns.

          SECTION 13. Assignment. (a) If a Shareholder transfers Common Shares to another Person or Persons as provided herein,
the Shareholder may transfer or assign to such Person its rights under the Agreement;
provided, however, that the Corporation is given written notice at the time of or
within a reasonable time after such transfer or assignment, stating the name and address of each
transferee or assignee and identifying the securities with respect to which such rights are being
transferred or assigned, and, provided further, that each transferee or assignee of such rights
assumes all of the obligations of the Shareholder under this Agreement with respect to those Common
Shares transferred to such transferee or assignee, and no such assignment or
transfer shall operate to release the Shareholder from any of its obligations or liabilities
hereunder.

 

17

          SECTION 14. Entire Agreement. This Agreement constitutes the entire agreement of the parties hereto with respect to the
subject matter hereof and supersedes all prior agreements and undertakings, both written and oral,
between the parties with respect to the subject matter hereof.

          SECTION 15. Notices. All notices, requests, claims, demands and other communications hereunder shall be in
writing and shall be given or made (and shall be deemed to have been duly given or made upon
receipt) by delivery in person, by courier service, by facsimile, or by registered or certified
mail (postage prepaid, return receipt requested) to the parties at the addresses specified in
Exhibit I hereof (or at such other address for a party as shall be specified in a notice given in
accordance with this Section 16).

          SECTION 16. Modifications; Amendments; Waivers. This Agreement may not be amended or modified, except by an instrument in writing signed
by, or on behalf of, the Corporation and Shareholders representing 75% of the Registrable Shares.

          SECTION 17. Counterparts; Facsimile Signatures. This Agreement may be executed and delivered in one or more counterparts (including by
telecopy), and by the different parties hereto in separate counterparts, each of which when
executed shall be deemed to be an original but all of which taken together shall constitute one and
the same agreement.

          SECTION 18. Headings. The descriptive headings contained in this Agreement are for convenience of reference only
and shall not affect in any way the meaning or interpretation of this Agreement.

 

18

          SECTION 19. Construction. If an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties and no presumption or burden of proof shall arise
favouring or disfavouring any party because of the authorship of any provision of this Agreement.

          SECTION 20. Severability; Governing Law. If any term or other provision of this Agreement is invalid, illegal or incapable of being
enforced by any Law, governmental regulation or public policy, all other terms and provisions of
this Agreement shall nevertheless remain in full force and effect as long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible. This Agreement shall be governed by, and construed
in accordance with, the laws of the Province of Ontario and the federal laws of Canada applicable
therein.

          SECTION 21. Waiver of Jury Trial. Each of the parties hereto irrevocably and unconditionally waives trial by jury in any
legal action or proceeding relating to this Agreement, the transactions contemplated hereby and for
any counterclaim therein.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first written
above.

	 	 	 	 	 
	 	 	PHOTOWATT TECHNOLOGIES INC.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	ATS AUTOMATION TOOLING SYSTEMS INC.
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

 

 

EXHIBIT 1

NOTICE

	 	 	 
	If to ATS:

	 	ATS Automation Tooling Systems Inc.
	 

	 	250 Royal Oak Road
	 

	 	Cambridge, ON
	 

	 	Canada N3H 4R6
	 

	 	Attention: Stewart McCuaig
	 

	 	Fax Number: (519) 650-6520
	 
	 	 
	If to the Corporation:

	 	Photowatt Technologies Inc.
	 

	 	25 Reuter Drive
	 

	 	Cambridge, ON
	 

	 	Canada N3E 1A9
	 

	 	Attention: l
	 

	 	Fax Number: l

 

 

 

REGISTRATION RIGHTS AGREEMENT

 

Among

PHOTOWATT TECHNOLOGIES INC.

and

ATS AUTOMATION TOOLING SYSTEMS INC.

Dated as of l, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1.
	 	Definitions	 	 	1	 
	 	 	 	 	 	 
	SECTION 2.
	 	Request for Registration	 	 	4	 
	 	 	 	 	 	 
	SECTION 3.
	 	Piggyback Registration	 	 	7	 
	 	 	 	 	 	 
	SECTION 4.
	 	Shelf Registration	 	 	9	 
	 	 	 	 	 	 
	SECTION 5.
	 	Expenses	 	 	9	 
	 	 	 	 	 	 
	SECTION 6.
	 	Holdback Agreement	 	 	9	 
	 	 	 	 	 	 
	SECTION 7.
	 	Preparation and Filing	 	 	9	 
	 	 	 	 	 	 
	SECTION 8.
	 	Indemnification; Contribution	 	 	13	 
	 	 	 	 	 	 
	SECTION 9.
	 	Information by Holders of Registrable Shares	 	 	16	 
	 	 	 	 	 	 
	SECTION 10.
	 	Exchange Act Compliance	 	 	16	 
	 	 	 	 	 	 
	SECTION 11.
	 	Termination	 	 	16	 
	 	 	 	 	 	 
	SECTION 12.
	 	Successors and Assigns	 	 	16	 
	 	 	 	 	 	 
	SECTION 13.
	 	Assignment	 	 	17	 
	 	 	 	 	 	 
	SECTION 14.
	 	Entire Agreement	 	 	17	 
	 	 	 	 	 	 
	SECTION 15.
	 	Notices	 	 	17	 
	 	 	 	 	 	 
	SECTION 16.
	 	Modifications; Amendments; Waivers	 	 	17	 
	 	 	 	 	 	 
	SECTION 17.
	 	Counterparts; Facsimile Signatures	 	 	17	 
	 	 	 	 	 	 
	SECTION 18.
	 	Headings	 	 	17	 
	 	 	 	 	 	 
	SECTION 19.
	 	Construction	 	 	17	 
	 	 	 	 	 	 
	SECTION 20.
	 	Severability; Governing Law	 	 	17	 
	 	 	 	 	 	 
	SECTION 21.
	 	Waiver of Jury Trial	 	 	18exv10w13

 

Exhibit
10.13

SHARE TRANSFER AGREEMENT

          THIS SHARE TRANSFER AGREEMENT (this “Agreement”), made and entered into on the [•] day of [•],
2007, by and among Photowatt Technologies Inc. (“Purchaser”), a corporation duly organized and
validly existing under the laws of Canada and ATS Automation Tooling Systems Inc. (“Seller”), a
corporation duly organized and validly existing under the laws of the Province of Ontario.

RECITALS

	1.	 	Seller is the beneficial owner of [•] common shares (the “Shares”) in the capital of Spheral
Solar Power, Inc., a corporation duly organized and validly existing under the laws of the
Province of Ontario.

	2.	 	Seller desires to sell to Purchaser and Purchaser desires to purchase from Seller the Shares
on the terms and conditions hereinafter set forth.

	3.	 	This Agreement is being entered into concurrent with certain other agreements in connection
with the reorganization of the Seller’s solar operations and the initial public offering of shares in the common stock of the Purchaser.

NOW THEREFORE, for and in consideration of the premises and the mutual covenants and agreements
herein contained, the parties hereto hereby agree as follows:

1. Sale and Purchase. Subject to the terms and conditions set forth in this Agreement,
Seller hereby sells, transfers, assigns and conveys to Purchaser, and Purchaser hereby purchases
from Seller, the Shares effective as of the date hereof (the “Time of Transfer”).

2. Purchase Price. The purchase price payable by Purchaser to Seller for the Shares is
equal to the fair market value of the Shares as at the date hereof, which the parties hereto have
determined to be [•] (“Purchase Price”).

3. Payment of Purchase Price. The Purchase Price shall be paid and satisfied by Purchaser
by the issuance by Purchaser to Seller of [•] common shares in the capital of Purchaser (the
“Consideration Shares”) having an aggregate fair market value and stated capital equal to the
aggregate fair market value of the Shares. Seller hereby acknowledges receipt from Purchaser on
the date hereof of the Consideration Shares in full satisfaction of the Purchase Price.

4. Subsection 85(1) and Other Tax Elections. Seller and Purchaser shall file in mutually
agreeable form and within the time prescribed all elections required or desirable under the Income
Tax Act (Canada), including without limitation an election under subsection 85(1) of the Income Tax
Act (Canada), and any applicable provincial legislation in respect of the transfer of the Shares.

 

- 2 -

5. Taxes. Purchaser shall be liable for all taxes, duties or other like charges properly
payable upon and in connection with the sale, conveyance, assignment and transfer of the Shares to
Purchaser save and except for any income or corporation taxes payable by Seller.

6. Representations and Warranties of Seller. Seller hereby represents and warrants to
Purchaser, and acknowledges that Purchaser is relying upon such representations and warranties in
connection with the entering into of this Agreement and the purchase by Purchaser of the Shares,
that:

6.1 Organization and Standing of Seller. Seller is a corporation duly organized and
validly existing under the laws of the Province of Ontario, with full power and authority to
enter into this Agreement and to sell, assign, transfer, convey and deliver the Shares to
Purchaser.

6.2 Corporate Authorization. All corporate and other proceedings required to be
taken by or on the part of Seller, to authorize it to execute, deliver and carry out this
Agreement and to sell, assign, transfer, convey and deliver the Shares to Purchaser have
been duly and properly taken. Neither the execution and delivery of this Agreement by
Seller, nor compliance with its terms, will result in a breach or violation of Seller’s
charter documents.

6.3 Title to the Shares. Seller has good and marketable title to the Shares, free
and clear of all mortgages, pledges, liens, security interests, conditional sales or
agreements, encumbrances, restrictions or charges of any kind.

6.4. Non-Resident of Canada. Seller is not a non-resident of Canada for purposes of
Section 116 of the Income Tax Act (Canada).

7. Representations and Warranties of Purchaser. Purchaser hereby represents and warrants
to Seller, and acknowledges that Seller is relying upon such representations and warranties in
connection with the entering into of this Agreement and the sale to Purchaser of the Shares, that:

7.1 Organization and Standing of Purchaser. Purchaser is a corporation duly
organized and validly existing under the laws of Canada, with full power and authority to
enter into this Agreement and with a sufficient number of authorized and unissued shares to
satisfy the consideration requirements specified in Section 3 hereof.

7.2 Corporate Authorization. All corporate and other proceedings required to be
taken by or on the part of Purchaser to authorize it to execute, deliver and carry out this
Agreement have been duly and properly taken. Neither the execution and delivery of this
Agreement by Purchaser, nor compliance with its terms, will result in a breach or violation
of Purchaser’s charter documents.

7.3 Consideration Shares Validly Issued. The Consideration Shares have been validly
issued in compliance with applicable law and are fully paid and non-assessable.

 

- 3 -

8. Survival of Representations and Warranties. The representations and warranties of the
parties hereto set forth in this Agreement shall survive for a period of two years from the Time of
Transfer.

9. Further Assurances and Assistance. Seller shall, from time to time, at the request of
Purchaser, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and
delivered all such further acts, deeds, assignments, transfers, conveyances, assurances and take
such other action as Purchaser may reasonably request and as may be reasonably necessary in order
to vest in Purchaser title to and possession and control of the Shares. Purchaser shall, from time
to time, at the request and at the cost and expense of Seller, take such action as Seller may
reasonably request to assist Seller in complying with all laws applicable to the consummation of
the transactions contemplated by this Agreement.

10. General.

	 	10.1	 	Successors and Assigns. Neither party hereto shall assign, transfer or
otherwise alienate any or all of its rights or interest under this Agreement without
the express prior written consent of the other party hereto. This Agreement shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns, and any permitted assignee shall agree to perform the
obligations of the assignor of this Agreement. Any attempted transfer, assignment or
alienation in violation of this Section 10.1 shall be invalid and ineffective ab
initio.
	 
	 	10.2	 	Governing Law. 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. If any dispute arises out of or in connection with this Agreement, the
parties hereto irrevocably (a) consent and submit to the exclusive jurisdiction of the
Courts of the Province of Ontario, (b) waive any objection to that choice of forum
based on venue or to the effect that the forum is not convenient, and (c) waive to the
fullest extent permitted by law any and all right to trial or adjudication by jury.
	 
	 	10.3	 	Construction. The division of this Agreement into articles, sections,
paragraphs and subparagraphs and the insertion of headings are for convenience of
reference only and shall not affect the construction or interpretation of this
Agreement. The terms “this Agreement”, “hereof”, “herein”, “hereunder” and similar
expressions refer to this Agreement and not to any particular article, section or other
portion thereof and include any agreement or instrument supplementary or ancillary
hereto. Words importing the singular number only shall include the plural and vice
versa, and words importing the use of any gender shall include all genders. The words
“include,” “includes” and “including” shall be deemed to be followed by “without
limitation.”
	 
	 	10.4	 	Amendment. This Agreement may only be modified, amended by, altered or
supplemented by the execution and delivery of a written agreement executed by both the
parties hereto.

 

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	 	10.5	 	Counterparts; Facsimile Execution. This Agreement may be executed in
separate counterparts, each of which shall be deemed an original and all of which, when
taken together, shall constitute one and the same agreement. Execution and delivery of
this Agreement by facsimile transmission shall constitute execution and delivery of
this Agreement for all purposes, with the same force and effect as execution and
delivery of an original manually signed copy hereof.

* * * * *

 

- 5 -

IN WITNESS WHEREOF, the parties have duly executed this Agreement effective on the day and year
first above written.

	 	 	 	 	 	 	 
	 	 	PHOTOWATT TECHNOLOGIES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ATS AUTOMATION TOOLING SYSTEMS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]