Document:

EXHIBIT 10.8
SHARE PURCHASE AGREEMENT
among
ALEXANDRE MONGEON
and
SIMON OLIEL
and
STRATÉGIES P.P. INC.
and
VISION MARINE TECHNOLOGIES INC.
dated as of
June 3, 2021
​
​

SHARE PURCHASE AGREEMENT
This Share Purchase Agreement (this “Agreement”), dated as of June 3, 2021
AMONG:
ALEXANDRE MONGEON, an individual residing at 129 avenue Bellevue, in the City of Laval, Province of Québec, H7C 1T2 (“MONGEON”)
AND:
SIMON OLIEL, an individual residing at 6682 avenue MacDonald, in the City of Hampstead, Province of Québec, H3X 2X4 (“OLIEL”)
AND:
STRATÉGIES P.P. INC., a corporation existing under the laws of the British Virgin Islands, whose head office is located at 9 rue Alfred-Laliberté, in the City of Notre-Dame-de-l’Île-Perrot, Province of Québec, J7V 7P2 (“PELLERIN”)
(MONGEON, OLIEL, and PELLERIN referred to individually or collectively as the “Vendor” or the “Vendors”)
AND:
VISION MARINE TECHNOLOGIES INC., a corporation organized and existing under the laws of the Province of Québec, whose head office is located at 730 boulevard du Curé-Boivin, in the City of Boisbriand, Province of Québec, J7G 2A7 (the “Purchaser”)
AND:
7858078 CANADA INC., a corporation organized and existing under the laws of Canada, whose head office is located at 9 rue Alfred-Laliberté, in the City of Notre-Dame-de-l’Île-Perrot, Province of Québec, J7V 7P2 (the “Corporation”)
(each a “Party” and collectively, the “Parties”)
RECITALS
WHEREAS, the Vendor and the Purchaser entered into a certain Letter of Intent (“LOI”) dated and executed on March 15th, 2021, whereby the Vendors and the Purchaser agreed to enter into a share purchase agreement, such share purchase agreement which constitutes this Agreement by and between the Parties;
WHEREAS, Vendor owns all of the Shares in the capital of the Corporation;
WHEREAS, the Corporation owns all of the issued and outstanding shares of EB Rental, Ltd., a Delaware corporation (“EB Rental”), which is in the business of renting electric boats;
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WHEREAS, Vendor wishes to sell to Purchaser, and Purchaser wishes to purchase from Vendor, the Shares, subject to the terms and conditions set forth herein; and
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
ARTICLE I
Definitions
Section 1.01Definitions. The following terms have the meanings specified or referred to in this Section 1.01:
“Accounts Receivable” means all trade and other receivables of the Target Corporations as of the Calculation Time, determined on a gross basis in accordance with GAAP consistently applied, excluding: (a) Related Party Receivables; and (b) receivables due or unpaid more than 60 days after the original due date or 90 days after the original invoice date.
“Acquisition Proposal” has the meaning set forth in Section 5.03(a).
“Action” means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena, notice of assessment, notice or reassessment or investigation of any nature, civil, criminal, administrative, investigative, regulatory or otherwise, whether at law or in equity.
“Affiliate” when used to indicate a relationship with a specified Person, means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified Person and a Person shall be deemed to be controlled by another Person if controlled in any manner whatsoever that results in control in fact by that other Person (or that other Person and any Person or Persons with whom that other Person is acting jointly or in concert), whether directly or indirectly. For the purposes of this definition, “control”, when used with respect to any specified Person, means the power to direct the management and policies of that Person directly or indirectly, whether through ownership of securities, by trust, by contract or otherwise; and the term “controlled” has a corresponding meaning; provided that, in any event, any Person that owns directly, indirectly or beneficially 50% or more of the securities having voting power for the election of directors or other governing body of a corporation or 50% or more of the partnership interests or other ownership interests of any other Person will be deemed to control that Person.
“Agreement” has the meaning set forth in the preamble.
“Articles” means the original or restated articles of incorporation, articles of amendment, articles of continuance, articles of amalgamation, articles of arrangement, articles of reorganization, articles of dissolution, articles of revival, articles of constitution, letters patent, supplemental letters patent, a special act, memorandum and articles of association or any other instrument by which a corporation is incorporated.
“Assessment” has the meaning set forth in Section 5.12(e).
“Assets” means all the assets, real and personal, tangible and intangible of the Target Corporations.
“Assignment and Assumption Agreement” has the meaning set forth in Section 2.03(c).
“Balance Sheet” has the meaning set forth in the definition of “Financial Statements” in this Section 1.01.
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“Balance Sheet Date” has the meaning set forth in the definition of “Financial Statements” in this Section 1.01.
“Benefit Plan” means all employee benefit plans, agreements, programs, policies, practices, material undertakings and arrangements (whether oral or written, formal or informal, funded or unfunded) maintained for, available to or otherwise relating to any employees, directors or officers or former employees, directors or officers of the Target Corporations, or any spouses, dependents or survivors of any employee or former employee of the Target Corporations, or in respect of which a Target Corporation is a party to or bound by or is obligated to contribute or in any way liable, whether or not insured or whether or not subject to any Law, including bonus, deferred compensation, incentive compensation, share purchase, share appreciation, share option, severance and termination pay, hospitalization, health and other medical benefits including medical or dental treatment or expenses, life and other insurance including accident insurance, vision, legal, long-term and short-term disability, salary continuation, vacation, supplemental unemployment benefits, education assistance, equity or equity-based compensation, change of control benefits, profit-sharing, mortgage assistance, employee loan, employee assistance and pension, retirement and supplemental retirement plans (including any defined benefit or defined contribution Pension Plan and any group registered retirement savings plan), and supplemental pension, except that the term “Benefit Plans” shall not include any statutory plans with which the Target Corporations is required to comply, including the Canada Pension Plan, Québec Pension Plan and plans administered under applicable provincial health tax, workers’ compensation, workplace health and safety and employment insurance legislation.
“Books and Records” means: (a) all of the Target Corporations’ books of account, accounting records and other financial data and information, including copies of filed Tax Returns and Assessments for each of the financial years of the Target Corporations ended before the date of this Agreement excluding the Assessment for the most recently completed financial period; (b) the corporate records of the Target Corporations; (c) all sales and purchase records, lists of suppliers and customers, credit and pricing information, formulae, business, engineering and consulting reports and research and development information of, or relating to, the Target Corporations or the Business; and (d) all other books, documents, files, records, telephone call recordings, correspondence, data and information, financial or otherwise, that are in the possession or under the control of the Target Corporations, Vendor or an Affiliate thereof, including all data and information stored electronically or on computer related media.
“Business” means the rental of electric boats.
“Business Day” means any day except Saturday, Sunday or any other day on which banks located in Montréal, Québec are authorized or required by Law to be closed for business.
“Calculation Time” means 11:59 p.m. Montréal time on the day immediately preceding the Closing Date.
“Cash and Securities” means: (a) cash, excluding restricted cash; (b) money in bank accounts plus uncleared deposits less outstanding cheques; (c) guaranteed income certificates, certificates of deposit, banker’s acceptances and similar instruments issued by a Canadian financial institution; and (d) marketable securities of the Corporation, determined in accordance with GAAP consistently applied, the whole calculated as of or before the date of the Closing Working Capital Statement.
“CFPOA” has the meaning set forth in Section 3.25(a).
“Closing” has the meaning set forth in Section 2.05.
“Closing Date” means the date hereof.
“Closing Date Tax Year” has the meaning set forth in Section 5.12(b).
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“Closing Time” means 12:00 a.m. (Montréal time) on the Closing Date or such other time on the Closing Date as the parties agree in writing that the Closing shall take place.
“Closing Working Capital” means: (a) the Current Assets of the Target Corporations; less (b) the Current Liabilities of the Target Corporations, determined as of the Closing Time.
“Closing Working Capital Statement” has the meaning set forth in Section 2.04(a)(i).
“Collective Agreement” means any collective agreement, letter of understanding, letter of intent or other written communication or Contract with any trade union, association that may qualify as a trade union, council of trade unions, employee bargaining agent or affiliated bargaining agent, which would cover any of the Employees.
“Contracts” means all contracts, leases, deeds, mortgages, licences, instruments, notes, commitments, undertakings, indentures, joint ventures and all other agreements, commitments and legally binding arrangements, whether written or oral.
“Corporation” has the meaning set forth in the recitals.
“Corporate IP” means all Intellectual Property that is owned or held for use by the Target Corporations.
“Corporate IP Agreements” means all licences, sublicences, consent to use agreements, settlements, coexistence agreements, covenants not to sue, permissions and other Contracts (including any right to receive or obligation to pay royalties or any other consideration), whether written or oral, relating to Intellectual Property to which a Target Corporation is a party, beneficiary or otherwise bound.
“Corporate IP Registrations” means all Corporate IP that is subject to any issuance registration, application or other filing by, to or with any Governmental Authority or authorized private registrar in any jurisdiction, including registered trade-marks, domain names and copyrights, issued and reissued patents and pending applications for any of the foregoing.
“Current Assets” means consolidated Cash and Securities, Accounts Receivable, Inventories and prepaid expenses and deposits of the Target Corporations as at the Calculation Time, determined in accordance with GAAP consistently applied, but does not include: (a) the portion of any prepaid expense of which Purchaser will not receive the benefit following the Closing; and (b) deferred Tax assets.
“Current Liabilities” means the consolidated trade and other payables, accrued Taxes and other accrued charges of the Target Corporations, determined in accordance with GAAP consistently applied, but does not include: (a) income Taxes payable; (b) accrued provisions; (c) deferred Tax liabilities; and (d) the current portion of long term debt, determined in accordance with GAAP consistently applied.
“Direct Claim” has the meaning set forth in Section 7.05(c).
“Disclosure Schedules” means the schedules attached to this Agreement delivered by Vendor to Purchaser concurrently with the execution and delivery of this Agreement.
“Disputed Amounts” has the meaning set forth in Section 2.04(b)(iii).
“Dollars” or $” means the lawful currency of the United States of America, unless otherwise specified herein.
“Employees” means those individuals employed by the Target Corporations on the date of this Agreement.
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“Employment Agreement” has the meaning set forth in Section 6.01(d).
“Encumbrances” means any encumbrance or restriction of any kind or nature whatsoever and howsoever arising (whether registered or unregistered) and includes a security interest, mortgage, easement, adverse ownership interest, defect on title, condition, right of first refusal, right of first offer, right-of-way, encroachment, building or use restriction, conditional sale agreement, hypothec, pledge, deposit by way of security, hypothecation, assignment, charge, security under sections 426 or 427 of the Bank Act (Canada), trust or deemed trust, voting trust or pooling agreement with respect to securities, any adverse claim, grant of any exclusive licence or sole licence, or any other right, option or claim of others of any kind whatsoever, and includes any agreement to give any of the foregoing in the future, and any subsequent sale or other title retention agreement or lease in the nature thereof, affecting the Corporation, the Shares or the Assets.
“Environment” means the air, surface water, ground water, body of water, any land (including surface land and sub-surface strata), soil or underground space, all living organisms and the interacting natural systems that include components of the air, land, water and inorganic matters and living organisms, and the environment or natural environment as defined in any Environmental Law, and “Environmental” shall have a corresponding meaning.
“Environmental Law” means any all Laws relating to the protection of the Environment including those relating to the storage, generation, use, handling, manufacture, processing, transportation, import, export, treatment, release or disposal of any Hazardous Substance.
“Environmental Notice” means any written directive, investigation, proceeding, letter or other written communication from any Governmental Authority relating to non-compliance or potential non-compliance with or breach of or potential breach of any Environmental Law or Environmental Permit.
“Environmental Permit” means any Permit, letter, clearance, consent, waiver, closure, exemption, decision or other action required under or issued, granted, given, authorized by or made by any Government under any Environmental Law.
“Equity Compensation Plan Liability” means any payment owed to, or entitlement of, an Employee, or Liability, relating to or resulting from any Equity Compensation Plan, whether arising before or after the Closing Time other than any Liability arising because of the Purchaser Benefit Plans or the other terms and conditions of employment of Employees after Closing, except those Liabilities relating to terms and conditions of employment of Employees that Purchaser was unaware of as a result of a breach by Vendor of any of its representations and warranties in this Agreement (without reference to any survival period otherwise provided for in this Agreement).
“Equity Compensation Plans” means any deferred profit sharing plans, employee profit sharing plans and equity compensation plans that provide for grants of restricted shares or performance bonuses to Employees.
“FACFOA” has the meaning set forth in Section 3.25(a).
“FCPA” has the meaning set forth in Section 3.25(a).
“Financial Statements” means collectively the unaudited financial statements of the Target Corporations for the financial periods ended December 31st, 2020 (the “Balance Sheet Date”) and the end of the day immediately preceding the Closing Date, consisting of a balance sheet (the “Balance Sheet”), statement of earnings (loss) and retained earnings, statement of cash flows and the related notes thereto.
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“GAAP” means generally accepted accounting principles as set forth in the CPA Canada Handbook – Accounting for an entity that prepares its financial statements in accordance with Accounting Standards for Private Enterprises, at the relevant time, applied on a consistent basis.
“Governmental Authority” means: (a) any court, tribunal, judicial body or arbitral body or arbitrator; (b) any domestic or foreign government or supranational body or authority whether multinational, national, federal, provincial, territorial, state, municipal or local and any governmental agency, governmental authority, governmental body, governmental bureau, governmental department, governmental tribunal or governmental commission of any kind whatsoever; (c) any subdivision or authority of any of the foregoing; (d) any quasi-governmental or private body or public body exercising any regulatory, administrative, expropriation or taxing authority under or for the account of the foregoing; (e) any stock or securities exchange; and (f) any public utility authority.
“Governmental Order” means any order, writ, judgment, injunction, decree, stipulation, determination, award, decision, sanction or ruling entered by or with any Governmental Authority.
“Hazardous Substance” means, collectively, petroleum, any petroleum product, any radioactive material (including radon gas), explosive or flammable materials, asbestos in any form, urea-formaldehyde foam insulation, and polychlorinated biphenyls, any pollutant, contaminant, waste, hazardous substance, hazardous material, hazardous waste, toxic substance, dangerous substance, dangerous good, restricted hazardous waste, toxic substance or a source of contamination, as defined or identified in any Environmental Law.
“HST/GST” means all taxes levied under Part IX of the Excise Tax Act (Canada).
“ICA” means the Investment Canada Act.
“Indemnified Party” has the meaning set forth in Section 7.05.
“Indemnifying Party” has the meaning set forth in Section 7.05.
“Independent Accountant” has the meaning set forth in Section 2.04(b)(iii).
“Independent Contractor” means: (a) any individual who is not, or was not (with respect to former Independent Contractors), an employee, officer or director of the Target Corporations, or any such individual’s personal services company, and which individual or personal services company receives or received remuneration from the Target Corporations under a Contract for services; and (b) any individual who is an employee, officer or director of the Target Corporations, but who in the past was an individual who was not an employee, officer or director of the Target Corporations or any such individual’s personal services company, and which individual or personal services company received remuneration from the Target Corporations under a Contract for services.
“Insurance Policies” has the meaning set forth in Section 3.15.
“Intellectual Property” means all intellectual property and industrial property rights and assets, and all rights, interests and protections that are associated with, similar to, or required for the exercise of, any of the foregoing, however arising, under the Laws of any jurisdiction throughout the world, whether registered or unregistered, including any and all: (a) trade-marks, service marks, trade names, brand names, logos, trade dress, design rights and other similar designations of source, sponsorship, association or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications and renewals for, any of the foregoing; (b) all business names, corporate names, telephone numbers and other communication addresses owned or used by the Target Corporations; (c) internet domain names, whether or not trade-marks, registered in any top-level domain by any authorized private registrar or Governmental Authority, web addresses, web 
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pages, websites and related content, accounts with Twitter®, Facebook® and other social media companies and the content found thereon and related thereto, and URLs; (d) works of authorship, expressions, designs and design registrations, whether or not copyrightable, including copyrights, author, performer and moral rights, and all registrations, applications for registration and renewals of such copyrights; (e) all industrial designs and applications for registration of industrial designs and industrial design rights, design patents and industrial design registrations owned or used by the Target Corporations; (f) inventions, discoveries, trade secrets, business and technical information and know-how, databases, data collections and other confidential and proprietary information and all rights therein; (g) patents (including all patent registrations, reissues, divisional applications or analogous rights, continuations and continuations-in-part, re-examinations, renewals, substitutions and extensions thereof), patent applications and other patent rights and any other Governmental Authority issued indicia of invention ownership (including inventor’s certificates and patent utility models); and (h) Software.
“Inventory” means all inventories and other supplies and consumables (but excluding advertising and publicity materials of the Target Corporations) wherever located, and whether on consignment or not as at the Calculation Time, determined on a gross basis in accordance with GAAP consistently applied but excluding any obsolete or worn-out inventory or inventory that is no longer used or is not in its original packaging.
“Law” means any statute, law, ordinance, regulation, rule, instrument, code, order, constitution, treaty, common law, judgment, decree, other requirement or rule of law of any Governmental Authority.
“Liabilities” has the meaning set forth in Section 3.07.
“Losses” means losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of whatever kind, including legal fees, disbursements and charges on a [substantial indemnity/solicitor-client] basis and the cost of enforcing any right to indemnification hereunder and the cost of pursuing any insurance providers; provided that “Losses” shall not include punitive or exemplary damages, except in the case of fraud or to the extent actually awarded to a Governmental Authority or other third party.
“Material Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become, individually or in the aggregate, materially adverse to: (a) the business, results of operations, condition (financial or otherwise) or assets of the Target Corporations; or (b) the ability of Vendor to consummate the transactions contemplated hereby on a timely basis; provided that: (i) “Material Adverse Effect” shall not include any event, occurrence, fact, condition or change, directly or indirectly, arising out of or attributable to: (A) general economic or political conditions; (B) conditions generally affecting the industries in which the Target Corporations operate; (C) any changes in financial or securities markets in general; (D) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof; (E) general outbreaks of illness (excluding, however, the COVID-19 pandemic); (F) any action required or permitted by this Agreement, except under Section 3.05 and Section 5.09; (G) any changes in applicable Laws or accounting rules or principles, including GAAP; or (H) the public announcement, pendency or completion of the transactions contemplated by this Agreement; and (ii) any event, occurrence, fact, condition or change referred to in clauses (i)(A) through (E) shall be taken into account in determining whether a Material Adverse Effect has occurred or could reasonably be expected to occur to the extent that such event, occurrence, fact, condition or change has a disproportionate effect on the Target Corporations compared to other participants in the industries in which the Target Corporations conduct their businesses.
“Material Contracts” has the meaning set forth in Section 3.09(a).
“Occupational Health and Safety Acts” means the Act respecting Occupational Health and Safety (Québec) and all other legislation of any applicable jurisdiction dealing with any of the subject matter of that Act or with respect to any aspect of the occupational health and safety of employees.
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“OFAC” has the meaning set forth in Section 3.25(a)(iii).
“Ordinary Course”, when used in relation to the conduct of the Business, means any transaction that constitutes an ordinary day-to-day business activity of the Target Corporations conducted in a manner consistent with the Target Corporations’ past practice.
“Pension Plan” means a “registered pension plan” as that term is defined in section 248(1) of the Tax Act.
“Permits” means all permits, licences, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from Governmental Authorities.
“Permitted Encumbrances” means: (a) statutory Encumbrances for current Taxes, special assessments or other governmental charges not yet due and payable or delinquent or, if overdue, are being contested diligently and in good faith by appropriate proceedings and for which adequate reserves are being maintained and for which appropriate accruals have been established in the Financial Statements in accordance with GAAP; (b) statutory liens and deposits or pledges made in connection with, or to secure payment of, worker’s compensation, employment insurance, Canada Pension Plan and Québec Pension Plan programs mandated under Law and for which appropriate accruals have been established in accordance with GAAP; (c) restrictions on the transfer of securities arising under Law or under the Articles; (d) the rights of counterparties under the Contracts; (e) undetermined or inchoate Encumbrances imposed or permitted by Law and incurred in the Ordinary Course and in the operation of the Real Property, such as builder’s liens, construction liens, materialmens’ liens and other liens, privileges or other charges of a similar nature that relate to obligations not due or delinquent or, if due and delinquent, are being contested diligently and in good faith by appropriate proceedings and for which adequate reserves are being maintained; (f) any reservations or exceptions contained in or implied by statute in the original dispositions from the Crown and grants made by the Crown of any land or interest reserved therein that do not have a Material Adverse Effect on the value of the Real Property or the use of the Real Property or the operation of the Business as currently carried on at such Real Property; (g) security given in the Ordinary Course to a public utility or any municipality or governmental or public authority in connection with the operation of the Business or the Real Property; (h) all encroachments, overlaps, overhangs, unrecorded servitudes and easements, variations in area or measurement, rights of parties in possession, lack of access or any other matters not of record that would be disclosed by an accurate survey or physical inspection of the Real Property and that do not materially interfere with or affect the value or operation of the Business as currently carried on at such Real Property; (i) all permits, servitudes and easements (including conservation easements and public trust easements, rights-of-way, road use agreements, covenants, conditions, restrictions, reservations, licences, other surface agreements and other matters of record) and zoning by-laws and restrictions, ordinances and other restrictions as to the use of real property; provided that they are not of such a nature as to have a Material Adverse Effect on the value or use of the Real Property subject thereto or the operation of the Business as currently carried on at such Real Property; and (j) Encumbrances listed in Section 1.01 of the Disclosure Schedules.
“Person” means an individual, corporation, company, limited liability company, body corporate, partnership, joint venture, Governmental Authority, unincorporated organization, trust, association or other entity.
“Personal Information” means any factual or subjective information, recorded or not, about an employee, Independent Contractor, contractor, agent, consultant, officer, director, executive, client, customer or supplier of the Target Corporations who is a natural person or a natural person who is a shareholder of Vendor, or about any other identifiable individual, including any record that can be manipulated, linked or matched by a reasonably foreseeable method to identify an individual, but does not include the name, title or business address or telephone number of an employee of the Target Corporations.
“Pre-Closing Benefit Liability” means any and all payments for which the Corporation is liable, which is attributable to entitlements owed to Employees or former employees of the Corporation or Vendor as of the 
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Closing Time, or which such Employees or former employees will become entitled to after the Closing Time, resulting from any Benefit Plan or other agreements or arrangements made with Vendor or the Corporation before the Closing Time, and all claims, payments and obligations owed under any Benefit Plan arising or relating to a period before the Closing Time, including any incurred but not yet paid amounts owed to any Employee or former employee of the Corporation or Vendor but excluding any Liability arising because of the Purchaser Benefit Plans or other terms and conditions of employment of the Employees after Closing except those relating to terms and conditions of employment of Employees that Purchaser was unaware of as a result of a breach by Vendor of any of its representations and warranties in this Agreement (without reference to any survival period provided for in this Agreement).
“Pre-Closing Tax Periods” shall mean any Tax Period ending before the Closing and, in respect of EB Rental, any pre-Closing portion of a Straddle Period.
“Post-Closing Adjustment” has the meaning set forth in Section 2.04(a)(ii).
“Purchase Price” has the meaning set forth in Section 2.02.
“Purchaser” has the meaning set forth in the preamble.
“Purchaser Indemnitees” has the meaning set forth in Section 7.02.
“Purchaser Benefit Plans” has the meaning set forth in Section 5.11(b).
“QST” means all taxes levied under An Act Respecting the Québec Sales Tax.
“Real Property” means rights, title, estate and interest, present or future, of the Target Corporations in and to the lands and premises described in Section 1.01 of the Disclosure Schedules, including all buildings, erections, structures, fixtures and improvements of any nature or kind now and hereafter situated thereon and all other appurtenances thereto.
“Related Party” has the meaning set forth in Section 3.22(b).
“Related Party Debt” means all Liabilities owed by the Target Corporations to Vendor or any other Related Party.
“Related Party Receivables” means any receivable owing to the Target Corporations by Vendor or any other Related Party.
“Related Person” has the meaning set forth in Section 3.22(a).
“Remedial Order” means any Governmental Order issued, filed or imposed under any Environmental Law and includes any Governmental Order requiring any remediation or clean-up of any Hazardous Substance, or requiring that any Release or Disposal be reduced or eliminated.
“Representative” means, with respect to any Person, any, and all, directors, officers, employees, consultants, financial advisors, lawyers, accountants and other agents of such Person.
“Resolution Period” has the meaning set forth in Section 2.04(b)(ii).
“Restricted Period” has the meaning set forth in Section 5.08(a).
“Restrictive Covenants” has the meaning set forth in Section 5.08(f).
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“Review Period” has the meaning set forth in Section 2.04(b)(i).
“SEMA” has the meaning set forth in Section 3.25(a).
“Shares” means all of the issued and outstanding shares in the capital of the Corporation, being 300 Class A shares in the capital of the Corporation, of which 100 Class A shares are owned by Mongeon, 100 Class A shares are owned by Oliel, and 100 Class A shares are owned by Pellerin.
“Software” means computer programs, operating systems, applications, interfaces, applets, software scripts, macros, firmware, middleware, development tools and other codes, instructions or sets of instructions for computer hardware or software, including SQL and other query languages, hypertext markup language, wireless markup language, xml and other computer markup languages, in object, source code or other code format.
“Statement of Objections” has the meaning set forth in Section 2.04(b)(ii).
“Straddle Period” means any Tax Period beginning before the Closing and ending after the Closing.
“Target Corporations” means collectively the Corporation and EB Rental, Ltd., a Delaware corporation.
“Target Working Capital” has the meaning set forth in Section 2.04(a)(ii).
“Tax Act” means the Income Tax Act (Canada).
“Tax” or “Taxes” means all taxes, surtaxes, duties, levies, imposts, fees, assessments, reassessments, withholdings, dues and other charges of any nature, imposed or collected by any Governmental Authority, whether disputed or not, including federal, provincial, territorial, state, municipal and local, foreign and other income, franchise, capital, real property, personal property, withholding, payroll, health, transfer, value added, alternative, or add on minimum tax including HST/GST, sales, use, consumption, excise, customs, anti-dumping, countervail, net worth, stamp, registration, franchise, payroll, employment, education, business, school, local improvement, development and occupation taxes, duties, levies, imposts, fees, assessments and withholdings and Canada Pension Plan and Québec Pension Plan contributions, employment insurance premiums and all other taxes and similar governmental charges, levies or assessments of any kind whatsoever imposed by any Governmental Authority including any installment payments, interest, penalties or other additions associated therewith, whether or not disputed.
“Tax Period” means any period prescribed by any Governmental Authority for which a Tax Return is required to be filed or Tax is required to be paid.
“Tax Return” means all reports, returns, information returns, claims for refunds, elections, designations, estimates, reports and other documents, including any schedule or attachments thereto, filed or required to be filed or supplied to any Governmental Authority in respect of Taxes and including any amendment thereof or attachment thereto.
“Territory” means any country or territory in which the Target Corporations conducted Business as of the Closing Date.
“Third-Party Claim” has the meaning set forth in Section 7.05(a).
“Transaction Documents” means this Agreement, the Assignment and Assumption Agreement, and the Employment Agreements.
“Undisputed Amounts” has the meaning set forth in Section 2.04(b)(iii).
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“Vendor” has the meaning set forth in the preamble.
“Vendor Indemnitees” has the meaning set forth in Section 7.03.
“Vendor’s Knowledge” or any other similar knowledge qualification, means the actual or constructive knowledge of any director or officer of Vendor or the Corporation, after due inquiry.
ARTICLE II
Purchase and Sale
Section 2.01Purchase and Sale. Subject to the terms and conditions set forth herein, at the Closing, Vendor shall sell to Purchaser, and Purchaser shall purchase from Vendor, the Shares, free and clear of all Encumbrances, for the consideration specified in Section 2.02.
Section 2.02Purchase Price and Payment.
		(a)
	The aggregate purchase price for the Shares shall be $6,000,000 USD, subject to adjustment under Section 2.04, on a cash-free basis (the “Purchase Price”), which Purchase Price shall be allocated to the Vendors in the following proportions:

	Shareholder
	Shares
	Purchase Price

	Alexandre Mongeon
	100 Class A shares
	$2,000,000

	Simon Oliel
	100 Class A shares
	$2,000,000

	Stratégies P.P. Inc.
	100 Class A shares
	$2,000,000

	TOTAL
	300 Class A shares
	$6,000,000

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		(b)
	The Purchase Price shall be paid as follows:

		(i)
	At Closing, and in consideration for the 100 Class A shares of Mongeon (the “AM Shares”), the Purchaser shall issue common shares of the Purchaser listed on the NASDAQ Capital Market under the symbol “VMAR” (the “AM Purchaser Shares”) for a total sum of $2,000,000 USD (the “AM Share Consideration Amount”) to Mongeon at the closing price of the common shares of the Purchaser on the NASDAQ Capital Market as of the Closing Date, provided, however, that the amount of taxes payable by Mongeon on the sale of the AM Shares shall be deducted from the AM Share Consideration Amount and paid by the Purchaser to Mongeon at Closing, by certified cheque or wire transfer of immediately available funds to an account of Oliel designated in writing by Mongeon to Purchaser no later than two Business Days before the Closing (the “AM Cash Consideration Amount”). Mongeon shall prepare and deliver to the Purchaser, at least two Business Days before the Closing, a statement setting forth his estimate of the amount of taxes payable on the sale of the AM Shares, which shall be deducted from the AM Share Consideration Amount.

		(ii)
	At Closing, and in consideration for the 100 Class A shares of Oliel (the “SO Shares”), the amount of $2,000,000 USD shall be paid by the Purchaser to Oliel, by one of the following methods, at the option of Oliel:

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		(A)
	by certified cheque or wire transfer of immediately available funds to an account of Oliel designated in writing by Oliel to Purchaser no later than two Business Days before the Closing (the “SO Cash Consideration Amount”);

		(B)
	by the issuance of common shares of the Purchaser listed on the NASDAQ Capital Market under the symbol “VMAR” (the “SO Purchaser Shares”) to Oliel at the closing price of the common shares of the Purchaser on the NASDAQ Capital Market as of the Closing Date (the “SO Share Consideration Amount”), provided, however, that the amount of taxes payable by Oliel on the sale of the SO Shares shall be deducted from the SO Share Consideration Amount and paid by the Purchaser to Oliel at Closing, by certified cheque or wire transfer of immediately available funds to an account of Oliel designated in writing by Oliel to Purchaser no later than two Business Days before the Closing, and shall be considered to form part of the SO Cash Consideration Amount; or

		(C)
	by a combination of (A) and (B), in which case, Oliel shall notify the Purchaser of the portion of the SO Shares Payment Amount that he desires to be paid by methods (A) and (B) respectively.

Oliel shall notify the Purchaser of his choice of payment method by a notice in writing delivered by Oliel to the Purchaser at least two Business Days before the Closing. If Oliel chooses payment method (B) or (C) above, Oliel shall prepare and deliver to the Purchaser, along with the notification of his choice of payment method, a statement setting forth his estimate of the amount of taxes payable on the sale of the SO Shares, which shall be deducted from the SO Share Consideration Amount.
		(iii)
	At Closing, and in consideration for the 100 Class A shares of Pellerin (the “PP Shares”), the amount of $2,000,000 USD shall be paid to Pellerin, by one of the following methods, at the option of Pellerin:

		(A)
	by certified cheque or wire transfer of immediately available funds to an account of Pellerin designated in writing by Pellerin to Purchaser no later than two Business Days before the Closing (the “PP Cash Consideration Amount”);

		(B)
	by the issuance of common shares of the Purchaser listed on the NASDAQ Capital Market under the symbol “VMAR” (the “PP Purchaser Shares”) to Pellerin at the closing price of the common shares of the Purchaser on the NASDAQ Capital Market as of the Closing Date (the “PP Share Consideration Amount”), provided, however, that the amount of taxes payable by Pellerin on the sale of the PP Shares shall be deducted from the PP Share Consideration Amount and paid by the Purchaser to Pellerin at Closing, by certified cheque or wire transfer of immediately available funds to an account of Pellerin designated in writing by Pellerin to Purchaser no later than two Business Days before the Closing, and shall be considered to form part of the PP Cash Consideration Amount; or

		(C)
	by a combination of (A) and (B).

Pellerin shall notify the Purchaser of its choice of payment method by a notice in writing delivered by Pellerin to the Purchaser at least two Business Days before the 
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Closing. If Pellerin chooses payment method (B) or (C) above, Pellerin shall prepare and deliver to the Purchaser, along with the notification of his choice of payment method, a statement setting forth his estimate of the amount of taxes payable on the sale of the PP Shares, which shall be deducted from the PP Share Consideration Amount.
Section 2.03Transactions to be Effected at the Closing.
		(a)
	At the Closing, Purchaser shall deliver to Vendor:

		(i)
	the AM Cash Consideration Amount, SO Cash Consideration Amount, and PP Cash Consideration Amount, as applicable, by certified cheque or wire transfer of immediately available funds to accounts of Vendors designated in writing by Vendors to Purchaser no later than two Business Days before the Closing Date;

		(ii)
	share certificates representing the AM Purchaser Shares, SO Purchaser Shares, and PP Purchaser Shares, as applicable, free and clear of all Encumbrances;

		(iii)
	a release and discharge of the Vendors from all liabilities of the Vendors in connection with any Liabilities of the Corporation, except those Liabilities that Purchaser was unaware of as a result of a breach by Vendors of any of their representations and warranties in this Agreement; and

		(iv)
	the Transaction Documents and all other agreements, documents, instruments or certificates required to be delivered by Purchaser at or before the Closing under Section 6.03.

		(b)
	At the Closing, Vendor shall deliver to Purchaser:

		(i)
	share certificates representing the Shares, free and clear of all Encumbrances, duly endorsed in blank or accompanied by forms of share transfers or other instruments of transfer duly executed in blank; and

		(ii)
	the Transaction Documents and all other agreements, documents, instruments or certificates required to be delivered by Vendor at or before the Closing under Section 6.02.

		(c)
	At the Closing, the Purchaser shall assume and agree to continue to pay, perform and discharge the following liabilities of the Vendors on a monthly basis, in accordance with the terms and conditions of an Assignment and Assumption Agreement to be entered into by the Purchaser, the Corporation, and EB Rental at the Closing (the “Assignment and Assumption Agreement”): an amount representing the unpaid balance of the loans owing by the Corporation to Holand Leasing for the leasing of boats, in the amount of $380,296 CAD, as of December 1st, 2020, as further described in Schedule “A” attached to the Assignment and Assumption Agreement, and an amount representing the unpaid balance of the loans owing by EB Rental to Royal Leasing for the leasing of automobiles, which is payable in monthly instalments of $1,565 CAD per month, which amounts shall be adjusted in accordance with the balance of such loans that is outstanding as of the Closing.

Section 2.04Purchase Price Adjustment
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		(a)
	Post-Closing Adjustment

		(i)
	Within 15 days after the Closing Date, Purchaser shall prepare and deliver to Vendor a statement setting forth its calculation of Closing Working Capital, which statement shall contain an unaudited balance sheet of the Corporation as of the Closing Date (without giving effect to the transactions contemplated herein), a calculation of Closing Working Capital (the “Closing Working Capital Statement”) and a certificate of the Chief Financial Officer of Purchaser that the Closing Working Capital Statement was prepared in accordance with GAAP applied using the same accounting methods, practices, principles, policies and procedures, with consistent classifications, judgments and valuation and estimation methodologies that were used in the preparation of the Financial Statements for the most recent financial year end as if such Closing Working Capital Statement was being prepared and audited as of a financial year end.

		(ii)
	The “Post-Closing Adjustment” shall be an amount equal to the Closing Working Capital minus $0 (the “Target Working Capital”). If the Post-Closing Adjustment is a positive number, Purchaser shall pay to Vendor an amount equal to the Post-Closing Adjustment. If the Post-Closing Adjustment is a negative number, Vendor shall pay to Purchaser an amount equal to $0 minus the Post-Closing Adjustment (that is, an amount equal to the Target Working Capital minus the Closing Working Capital).

		(b)
	Examination and Review

		(i)
	Examination. After receipt of the Closing Working Capital Statement, Vendor shall have 15 days (the “Review Period”) to review the Closing Working Capital Statement. During the Review Period, Vendor and Vendor’s accountant shall have full access to the Books and Records of the Corporation, the personnel of, and working papers prepared by, Purchaser and Purchaser’s accountant to the extent that they relate to the Closing Working Capital Statement and to such historical financial information (to the extent in Purchaser’s possession) relating to the Closing Working Capital Statement as Vendor may reasonably request for the purpose of reviewing the Closing Working Capital Statement and to prepare a Statement of Objections; provided that such access shall be in a manner that does not interfere with the normal business operations of Purchaser or the Corporation.

		(ii)
	Objection. On or before the last day of the Review Period, Vendor may object to the Closing Working Capital Statement by delivering to Purchaser a written statement setting forth Vendor’s objections in reasonable detail, indicating each disputed item or amount and the basis for Vendor’s disagreement therewith (the “Statement of Objections”). If Vendor fails to deliver the Statement of Objections before the expiration of the Review Period, the Closing Working Capital Statement and the Post-Closing Adjustment, as the case may be, reflected in the Closing Working Capital Statement shall be deemed to have been accepted by Vendor. If Vendor delivers the Statement of Objections before the expiration of the Review Period, Purchaser and Vendor shall negotiate to resolve such objections within 30 days after the delivery of the Statement of Objections (the “Resolution Period”), and, if the same are so resolved within the Resolution Period, the Post-Closing Adjustment and the Closing Working Capital Statement with such changes as may have been previously agreed in writing by Purchaser and Vendor, shall be final and binding.

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		(iii)
	Resolution of Disputes. If Vendor and Purchaser fail to reach an agreement with respect to all of the matters set forth in the Statement of Objections before expiration of the Resolution Period, then any amounts remaining in dispute (the “Disputed Amounts” and any amounts not so disputed, the “Undisputed Amounts”) shall be submitted for resolution to the office an impartial nationally recognized firm of independent chartered professional accountants, other than Vendor’s accountant or Purchaser’s accountant, appointed by mutual agreement of Purchaser and Vendor or, failing such agreement, by the President of the Chartered Professional Accountants of Canada (the “Independent Accountant”) who shall be, who, acting as an expert and not an arbitrator, shall resolve the Disputed Amounts only and make any adjustments to the Post-Closing Adjustment, as the case may be, and the Closing Working Capital Statement. The parties agree that all adjustments shall be made without regard to materiality. The Independent Accountant shall only decide the specific items under dispute by the parties and its decision for each Disputed Amount must be within the range of values assigned to each such item in the Closing Working Capital Statement and the Statement of Objections, respectively.

		(iv)
	Fees of the Independent Accountant. The fees and expenses of the Independent Accountant shall be paid by (A) Vendor and (B) Purchaser based upon the percentage that the amount actually contested but not awarded to Vendor or Purchaser, respectively, bears to the aggregate amount actually contested by Vendor and Purchaser.

		(v)
	Determination by Independent Accountant. The Independent Accountant shall make a determination as soon as practicable within 30 days (or such other time as the parties hereto shall agree in writing) after its engagement, and its resolution of the Disputed Amounts and their adjustments to the Closing Working Capital Statement or the Post-Closing Adjustment, or both, shall be conclusive and binding upon the parties hereto.

		(vi)
	Payments of Post-Closing Adjustment. Except as otherwise provided herein, any payment of the Post-Closing Adjustment, together with interest calculated as set forth below, shall (A) be due (x) within five Business Days of acceptance of the applicable Closing Working Capital Statement, or (y) if there are Disputed Amounts, then within five Business Days of the resolution described in Section 2.04(b)(v); and (B) be paid by wire transfer of immediately available funds to such account as is directed by Purchaser or Vendor, as the case may be. The amount of any Post-Closing Adjustment shall bear interest from and including the Closing Date to but excluding the date of payment at a rate per annum equal to 5%. Such interest shall be calculated daily on the basis of a 365 or 366 day year and the actual number of days elapsed, without compounding.

		(c)
	Adjustments for Tax Purposes. Any payments made pursuant to Section 2.04 shall be treated as an adjustment to the Purchase Price by the parties for Tax purposes, unless otherwise required by Law.

Section 2.05Closing. Subject to the terms and conditions of this Agreement, the purchase and sale of the Shares contemplated hereby (the “Closing”) shall take place and be effective as of the Closing Time  by an electronic exchange of documents and funds between Vendor and Purchaser.
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ARTICLE III
Representations and Warranties of Vendors
Except as set forth in the correspondingly numbered Section of the Disclosure Schedules, the Vendors represent and warrant to Purchaser jointly (where such joint representations and warranties are required within the applicable context and to the best of each of the Vendor’s knowledge) and severally in their own respective individual capacities (where such singular representations and warranties are required within the applicable context and to the best of each of the Vendor’s knowledge) that the statements contained in this ARTICLE III are true and correct as of the date hereof.
Section 3.01Corporate Status and Authorization of Vendors. Each Vendor that is a corporation is incorporated and validly existing under the laws of its jurisdiction of incorporation and has not been discontinued or dissolved under such Laws. No steps or proceedings have been taken to authorize or require such discontinuance or dissolution or, to such Vendor’s Knowledge, the bankruptcy, insolvency, liquidation or winding up of such Vendor. Each Vendor that is a corporation has submitted all notices or returns of corporate information and other filings required by Law to be submitted by it to any Governmental Authority. Each Vendor has the power and capacity to enter into this Agreement and the other Transaction Documents to which Vendor is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by each Vendor that is a corporation of this Agreement and any other Transaction Documents to which such Vendor is a party, the performance by such Vendor of its obligations hereunder and thereunder and the consummation by such Vendor of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of such Vendor. This Agreement has been duly executed and delivered by Vendor, and (assuming due authorization, execution and delivery by Purchaser), this Agreement constitutes a legal, valid and binding obligation of Vendor enforceable against Vendor in accordance with its terms. When each other Transaction Document to which Vendor is or will be a party has been duly executed and delivered by Vendor (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal, valid and binding obligation of Vendor enforceable against it in accordance with its terms.
Section 3.02Corporate Status and Extra-Provincial Registration of the Target Corporations. The Corporation is a corporation incorporated and validly existing under the federal laws of Canada and has not been discontinued or dissolved under such Laws. EB Rental is a corporation incorporated and validly existing under the laws of the State of Delaware and has not been discontinued or dissolved under such Laws. No steps or proceedings have been taken to authorize or require such discontinuance or dissolution or, to Vendor’s Knowledge, the bankruptcy, insolvency, liquidation or winding up of the Target Corporations. Each Target Corporation has submitted all notices or returns of corporate information and other filings required by Law to be submitted by it to any Governmental Authority. Each Target Corporation has the corporate power and capacity to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its business as it has been and is currently conducted. Each Target Corporation is duly licensed or registered to carry on business and has submitted all notices or returns of corporate information and other filings required by Law to be submitted by it to any Governmental Authority in each jurisdiction in which the properties owned or leased by it or the operation of its business as currently conducted makes such licensing or registration necessary. All corporate actions taken by the Target Corporations in connection with this Agreement and the other Transaction Documents will be duly authorized on or before the Closing. The Corporation is a “private issuer” with the meaning of section 2.4(1) of National Instrument 45-106 - Prospectus Exemptions.
Section 3.03Capitalization
		(a)
	The authorized capital of the Corporation consists of an unlimited number of Class A shares of which only the Shares are issued and outstanding and constitute the Shares to be purchased 

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by the Purchaser subject to the terms and conditions of this Agreement. All the Shares have been duly authorized, are validly issued, fully paid and non-assessable, and Vendor is the registered and beneficial owner of the Shares, free and clear of all Encumbrances. Upon consummation of the transactions contemplated by this Agreement, Purchaser shall own all the Shares, free and clear of all Encumbrances.
		(b)
	The authorized capital of EB Rental consists of 1,500 shares of Common Stock with no par value, of which only 100 shares are issued and outstanding (the “EB Rental Shares”). All the EB Rental Shares have been duly authorized, are validly issued, fully paid and non-assessable, and the Corporation is the registered and beneficial owner of the EB Rental Shares, free and clear of all Encumbrances.

		(c)
	All the Shares and EB Rental Shares were issued in compliance with applicable Laws. None of the Shares or EB Rental Shares were issued in violation of any agreement, arrangement or commitment to which Vendor or a Target Corporation is a party or is subject to or in violation of any preemptive or similar rights of any Person.

		(d)
	There are no outstanding or authorized options, warrants, convertible securities or other rights, agreements, arrangements or commitments of any character relating to any shares in the capital of the Target Corporations or obligating Vendor or the Target Corporations to issue or sell any shares of, or any other interest in, the Target Corporations. The Target Corporations do not have outstanding or authorized any share appreciation, phantom share, profit participation or similar rights. There are no voting trusts or agreements, pooling agreements, unanimous shareholder agreements or other shareholder agreements, proxies or other agreements or understandings in effect with respect to the voting or transfer of any of the Shares or EB Rental Shares.

Section 3.04No Subsidiaries. The Corporation does not own, or have any interest in, any shares or have securities, or another ownership interest, in any other Person, except for EB Rental.
Section 3.05No Conflicts; Consents. The execution, delivery and performance by Vendor of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the Articles, by-laws, unanimous shareholder agreement or other constating documents of Vendor or the Target Corporations; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Vendor or the Target Corporations; (c) except as set forth in Section 3.05 of the Disclosure Schedules, require the consent, notice or other action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate, modify or cancel any Contract to which Vendor or a Target Corporation is a party or by which Vendor or a Target Corporation is bound or to which any of their respective Assets are subject (including any Material Contract) or any Permit affecting the Assets or Business of the Target Corporations; or (d) result in the creation or imposition of any Encumbrance other than Permitted Encumbrances on any Assets of the Target Corporations. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Vendor or the Target Corporations in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, except as contemplated in Section 6.01.
Section 3.06Financial Statements
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		(a)
	Complete copies of the Target Corporations’ Financial Statements have been delivered to Purchaser. The Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the period involved.

		(b)
	The Financial Statements: (i) are based on the Books and Records of the Target Corporations; and (ii) fairly, completely and accurately present in all material respects the Assets, Liabilities and financial position of the Target Corporations as of the respective dates they were prepared and the results of the operations of the Target Corporations for the periods covered thereby.

		(c)
	The Corporation maintains a standard system of accounting established and administered in accordance with GAAP.

Section 3.07Undisclosed Liabilities. The Target Corporations have no liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise (collectively, the “Liabilities”), except: (a) those that are adequately reflected or reserved against in the Financial Statements; and (b) those that have been incurred in the Ordinary Course consistent with past practice since the execution date of the Term Sheet and that are not, individually or in the aggregate, material in amount.
Section 3.08Absence of Certain Changes, Events and Conditions. Since the Balance Sheet Date, and other than in the Ordinary Course consistent with past practice, there has not been, with respect to the Target Corporations, any:
		(a)
	event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;

		(b)
	amendment of the Articles, by-laws, unanimous shareholder agreement or other constating documents of the Target Corporations;

		(c)
	split, consolidation or reclassification of any shares in the Target Corporations;

		(d)
	issuance, sale or other disposition of any shares in the Target Corporations, or grant of any options, warrants or other rights to purchase or obtain (including upon conversion, exchange or exercise) any shares in the Target Corporations;

		(e)
	declaration or payment of any dividends or distributions on or in respect of any shares in the Target Corporations or redemption, retraction, purchase or acquisition of their shares, except for any dividends or distributions declared or paid by the Target Corporations in respect of any excess cash of the Target Corporations, which have been disclosed to the Purchaser;

		(f)
	material change in any method of accounting or accounting practice of the Target Corporations, except as required by GAAP or as disclosed in the notes to the Financial Statements;

		(g)
	material change in the Target Corporations’ cash management practices and its policies, practices and procedures with respect to collection of accounts receivable, establishment of reserves for uncollectible accounts, accrual of accounts receivable, inventory control, prepayment of expenses, payment of trade accounts payable, accrual of other expenses, deferral of revenue and acceptance of customer deposits;

		(h)
	entry into any Contract that would constitute a Material Contract;

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		(i)
	incurrence, assumption or guarantee of any indebtedness for borrowed money except unsecured current obligations and Liabilities incurred in the Ordinary Course consistent with past practice;

		(j)
	transfer, assignment, sale or other disposition of any of the Assets or cancellation of any debts or entitlements, except for sales of inventory in the Ordinary Course consistent with past practice;

		(k)
	transfer, assignment or grant of any licence or sublicence of any material rights under or with respect to any Corporate IP or Corporate IP Agreements;

		(l)
	material damage, destruction or loss (whether or not covered by insurance) to any of its Assets;

		(m)
	any capital investment in, or any loan to, any other Person;

		(n)
	acceleration, termination, material modification to or cancellation of any Contract to which a Target Corporation is a party or by which it is bound;

		(o)
	any material capital expenditures;

		(p)
	imposition of any Encumbrance upon any of the Shares or Assets, tangible or intangible;

		(q)
	(i) grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation or benefits in respect of its current or former employees, officers, directors, Independent Contractors or consultants, other than as provided for in any written agreements or required by applicable Law; (ii) change in the terms of employment for any employee or any termination of any employees for which the aggregate costs and expenses exceed $10,000; or (iii) action to accelerate the vesting or payment of any compensation or benefit for any current or former employee, officer, director, Independent Contractor or consultant;

		(r)
	hiring or promoting any individual as or to (as the case may be) an officer or hiring or promoting any employee below officer except to fill a vacancy in the Ordinary Course;

		(s)
	adoption, modification or termination of any: (i) employment, severance, retention or other agreement with any current or former employee, officer, director, Independent Contractor or consultant; (ii) Benefit Plan; or (iii) Collective Agreement, in each case, whether written or oral;

		(t)
	any loan to (or forgiveness of any loan to), or entry into any other transaction with, any of its Related Parties;

		(u)
	entry into a new line of business or abandonment or discontinuance of existing lines of business;

		(v)
	adoption of any amalgamation, arrangement, reorganization, liquidation or dissolution, or the commencement of any proceedings by a Target Corporation or its creditors seeking to adjudicate the Target Corporation as bankrupt or insolvent, making a proposal with respect to the Target Corporation under any Law relating to bankruptcy, insolvency, reorganization, arrangement or compromise of debts or similar laws, appointment of a trustee, receiver, receiver-manager, agent, custodian or similar official for the Target Corporation or for any substantial part of its Assets;

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		(w)
	purchase, lease or other acquisition of the right to own, use or lease any Assets for an amount in excess of $10,000, individually (in the case of a lease, per annum) or $10,000 in the aggregate (in the case of a lease, for the entire term of the lease, not including any option term), except for purchases of inventory or supplies in the Ordinary Course consistent with past practice;

		(x)
	acquisition by amalgamation or arrangement with, or by purchase of a substantial portion of the assets or shares of, or by any other manner, any business or any Person or any division thereof;

		(y)
	action by a Target Corporation to make, change or rescind any Tax election, amend any Tax Return or take any position on any Tax Return, take any action, omit to take any action or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset or attribute of the Target Corporation; or

		(z)
	any Contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

Section 3.09Material Contracts
		(a)
	Section 3.09(a) of the Disclosure Schedules lists each of the following Contracts of the Target Corporations (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Real Property (including, brokerage contracts) listed or otherwise disclosed in Section 3.10(e) of the Disclosure Schedules and all Corporate IP Agreements set forth in Section 3.12(b) of the Disclosure Schedules, being “Material Contracts”):

		(i)
	each Contract of the Target Corporations involving aggregate consideration in excess of $10,000 and that, in each case, cannot be cancelled by the Target Corporations without penalty or without more than 90  days’ notice;

		(ii)
	all Contracts that require the Target Corporations to purchase its total requirements of any product or service from a third party or that contain “take or pay” provisions;

		(iii)
	all Contracts that provide for the indemnification by the Target Corporations of any Person or the assumption of any Tax, Environmental or other Liability of any Person;

		(iv)
	all Contracts that relate to the acquisition or disposition of any business, a material amount of shares or assets of any other Person or any Real Property (whether by amalgamation, sale or issue of shares, sale of assets or otherwise);

		(v)
	all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing consulting and advertising Contracts to which a Target Corporations is a party;

		(vi)
	all employment agreements and Contracts with Independent Contractors or consultants (or similar arrangements) to which a Target Corporation is a party and that are not cancellable without material penalty or without more than 90 days’ notice;

		(vii)
	except for Contracts relating to trade receivables, all Contracts relating to indebtedness (including guarantees) of the Target Corporations;

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​
		(viii)
	all Contracts with any Governmental Authority to which a Target Corporation is a party;

		(ix)
	all Contracts that limit or purport to limit the ability of the Target Corporations to compete in any line of business or with any Person or in any geographic area or during any period of time;

		(x)
	any Contracts to which a Target Corporation is a party that provide for any joint venture, partnership or similar arrangement by the Target Corporation;

		(xi)
	all shareholder agreements, pooling agreements, voting trusts or similar agreements with respect to the ownership or voting of any of the Shares or restriction of the power of the directors of the Target Corporations to manage, or supervise the management of, the business and affairs of the Target Corporations;

		(xii)
	all Contracts between or among (A) the Target Corporations and (B) Vendor or any Affiliate of Vendor (other than the Target Corporations);

		(xiii)
	all Collective Agreements to which the Target Corporations is a party; and

		(xiv)
	any other Contract that is material to the Target Corporations and not previously disclosed under this Section 3.09.

		(b)
	Each Material Contract is valid and binding on the Target Corporations in accordance with its terms and is in full force and effect. None of the Target Corporations or, to Vendor’s Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or received any notice of any intention to terminate, any Material Contract. No event or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any Material Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation or the loss of any benefit thereunder. Complete and correct copies of each Material Contract (including all modifications, amendments and supplements thereto and waivers thereunder) have been made available to Purchaser.

Section 3.10Title to Assets; Real Property; Leases
		(a)
	The Target Corporations are the legal and beneficial owner of the Real Property, personal property and other Assets reflected in the Financial Statements.

		(b)
	The Target Corporations have good and marketable title in fee simple to, or a valid leasehold interest in, all Real Property and personal property and other Assets reflected in the Financial Statements or acquired after the Balance Sheet Date, other than Assets sold or otherwise disposed of in the Ordinary Course consistent with past practice since the Balance Sheet Date. All such Real Property, personal property and Assets (including leasehold interests) are free from all Encumbrances except for Permitted Encumbrances.

		(c)
	The Target Corporations do not and have not directly or indirectly owned any legal or beneficial interest in any real property, other than the Real Property.

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		(d)
	The Target Corporations have kept and maintained the Real Property in good operating condition and repair to preserve its value and operating efficiency, normal wear and tear excepted.

		(e)
	Section 3.10(e) of the Disclosure Schedules lists: (i) the municipal address of each parcel of Real Property; (ii) if such Real Property is leased or subleased by the Target Corporations, the details of such lease or sublease, including the name of the landlord, the rental amount currently being paid, and the expiration of the term of such lease or sublease; and (iii) the current use of such Real Property.

		(f)
	With respect to the current use of the Real Property:

		(i)
	all licences, certificates, consents, approvals, rights, permits (including building and occupancy permits) and agreements required to enable the Real Property to be used, operated and occupied in its current and intended manner are being complied with or have been obtained, or to the extent that any have not already been obtained, the same are not yet required and, if not yet required but the same are material, the Target Corporations have no reason to believe that the same will not be available before the time that the same are so required;

		(ii)
	all applicable legal and contractual requirements with regard to the use, occupancy, construction and operation thereof, including all zoning, by-laws, environmental, flood hazard, fire safety, health, handicapped facilities, building and other laws, ordinances, codes, regulations, orders and requirements of any governmental authority are being complied with, in all material respects;

		(iii)
	all declarations, easements, rights-of-way, covenants, conditions and restrictions of record are being complied with, in all material respects;

		(iv)
	all building services required for the proper functioning of the Real Property have been obtained, are functioning properly, and are fit and suitable for their intended purpose.

		(g)
	There are no agreements, options, contracts or commitments to sell, transfer or otherwise dispose of any Real Property or that would restrict the ability of the Target Corporations to directly or indirectly transfer any Real Property.

		(h)
	With respect to leased Real Property:

		(i)
	Vendor has delivered or made available to Purchaser true, complete and correct copies of any, and all, leases affecting the Real Property together with all amendments and restatements, renewals, extensions, supplements or modifications thereto.

		(ii)
	The Target Corporations are not a sublessor or grantor under any sublease, licence, occupancy agreement or other instrument granting to any other Person any right to the possession, lease, occupancy or enjoyment of any leased Real Property.

		(iii)
	As of the date hereof, the leases affecting the Real Property together with all amendments and restatements, renewals, extensions, supplements or modifications are in good standing and in full force and effect, and no material default has occurred on the part of the Target Corporations under any of such leases, nor to Vendor’s 

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Knowledge has any material default occurred by the tenants under any of the such leases (except, in each case, any such default that has previously been cured).
		(iv)
	To Vendor’s Knowledge, there is no existing condition that, but for the passage of time or the giving of notice, could result in (A) default by the Target Corporations under the terms of any of the leases affecting the Real Property together with all amendments and restatements, renewals, extensions, supplements or modifications, or (B) default by a tenant under the terms of its lease.

		(v)
	There is no material existing defect or condition affecting any of leased Real Property that is materially impairing the current use of such leased Real Property in connection with the Business and the Target Corporations.

		(i)
	No material improvements constituting a part of the Real Property encroach on real property owned or leased by a Person other than the Target Corporations, and there is no encroachment onto the Real Property by buildings or improvements from adjoining lands.

		(j)
	There are no Actions pending nor, to Vendor’s Knowledge, threatened against the Target Corporations, the Real Property or any portion thereof or interest therein that would adversely affect the value of the Real Property, the income generated by the Real Property, vacancy rates in respect of the Real Property or the assets, financial condition, Business or operations of the Target Corporations.

		(k)
	Vendor has not withheld any information of a material nature relating to the Real Property.

		(l)
	All information relating to the Real Property that Vendor has delivered or will deliver to Purchaser is accurate.

Section 3.11Condition and Sufficiency of Assets. Except as set forth in Section 3.11 of the Disclosure Schedules, the buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property of the Target Corporations are structurally sound, are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost. The buildings, plants, structures, furniture, fixtures, machinery, equipment, vehicles and other items of tangible personal property currently owned or leased by the Target Corporations, together with all other Assets of the Target Corporations, are sufficient for the continued conduct of the Target Corporations’ Business after the Closing in substantially the same manner as conducted before the Closing and constitute all of the rights, property and assets necessary to conduct the Business of the Target Corporations as currently conducted.
Section 3.12Intellectual Property
		(a)
	Section 3.12(a) of the Disclosure Schedules lists all: (i) Corporate IP Registrations; and (ii) Corporate IP, including Software, that are not registered but that are material to the Target Corporations’ Business or operations. All required filings and fees related to the Corporate IP Registrations have been timely filed with and paid to the relevant Governmental Authorities and authorized registrars, and all Corporate IP Registrations are otherwise in good standing. Vendor has provided Purchaser with true and complete copies of file histories, documents, certificates, examiner’s reports, office actions, correspondence and other materials related to all Corporate IP Registrations.

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		(b)
	Section 3.12(b) of the Disclosure Schedules lists all Corporate IP Agreements. Vendor has provided Purchaser with true and complete copies of all such Corporate IP Agreements, including all modifications, amendments and supplements thereto and waivers thereunder. Each Corporate IP Agreement is valid and binding on the Target Corporations in accordance with its terms and is in full force and effect. None of the Target Corporations nor any other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or received any notice of breach or default of or any intention to terminate, any Corporate IP Agreement.

		(c)
	The Target Corporations are the sole and exclusive legal and beneficial, and with respect to the Corporate IP Registrations, registered, owner of all right, title and interest in and to the Corporate IP, and have the valid right to use all other Intellectual Property used in or necessary for the conduct of the Business or the Target Corporations’ current operations, in each case, free and clear of Encumbrances other than Permitted Encumbrances. Without limiting the generality of the foregoing, Vendor has entered into binding, written agreements with every current and former employee of the Target Corporations, and with every current and former Independent Contractor, whereby such employees and Independent Contractors: (i) assign to the Target Corporations any ownership interest and right they may have in the Corporate IP; and (ii) acknowledge the Target Corporations’ exclusive ownership of all Corporate IP. Vendor has provided Purchaser with true and complete copies of all such agreements.

		(d)
	The consummation of the transactions contemplated hereunder will not result in the loss or impairment of or payment of any additional amounts with respect to, nor require the consent of any other Person in respect of, the Target Corporations’ right to own, use or hold for use any Intellectual Property as owned, used or held for use in the conduct of the Business or the Target Corporations’ operations as currently conducted.

		(e)
	The Target Corporations’ rights in the Corporate IP are valid, subsisting and enforceable. The Target Corporations have taken all reasonable steps to maintain the Corporate IP and to protect and preserve the confidentiality of all trade secrets included in the Corporate IP, including requiring all Persons having access thereto to execute written non-disclosure agreements.

		(f)
	The conduct of the Business as currently and formerly conducted, and the products, processes and services of the Target Corporations, have not infringed, misappropriated, diluted or otherwise violated, and do not and will not infringe, dilute, misappropriate or otherwise violate the Intellectual Property or other rights of any Person. No Person has infringed, misappropriated, diluted or otherwise violated, or is currently infringing, misappropriating, diluting or otherwise violating, any Corporate IP.

		(g)
	There are no Actions (including any oppositions, expungement proceedings, interferences or re-examinations) settled, pending or threatened (including in the form of offers to obtain a licence): (i) alleging any infringement, misappropriation, dilution or violation of the Intellectual Property of any Person by the Target Corporations; (ii) challenging the validity, enforceability, registrability or ownership of any Corporate IP or the Target Corporations’ rights with respect to any Corporate IP; or (iii) by the Target Corporations or any other Person alleging any infringement, misappropriation, dilution or violation by any Person of the Corporate IP. The Target Corporations are not subject to any outstanding or prospective Governmental Order (including any application or petition therefor) that does or would restrict or impair the use of any Corporate IP.

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Section 3.13Inventory. All Inventory, whether or not reflected in the Balance Sheet, consists of a quality and quantity usable and salable in the Ordinary Course consistent with past practice, except for obsolete, damaged, defective or slow-moving items that have been written off or written down to fair market value or for which adequate reserves have been established. All Inventory is owned by the Corporation free and clear of all Encumbrances, and no inventory is held on a consignment basis. The quantities of each item of Inventory (whether raw materials, work-in-process or finished goods) are not excessive but are reasonable in the present circumstances of the Corporation.
Section 3.14Accounts Receivable. The Accounts Receivable reflected on the Balance Sheet and the Accounts Receivable arising after the date thereof: (a) have arisen from bona fide transactions entered into by the Corporation involving the sale of goods or the rendering of services in the Ordinary Course consistent with past practice; and (b) constitute only valid, undisputed claims of the Corporation not subject to claims of set-off or other defences or counter-claims other than normal cash discounts accrued in the Ordinary Course consistent with past practice; and (c) subject to a reserve for bad debts shown on the Balance Sheet or, with respect to Accounts Receivable arising after the Balance Sheet Date, on the accounting records of the Corporation, are collectible in full within 90 days after billing. The reserve for bad debts shown on the Balance Sheet or, with respect to Accounts Receivable arising after the Balance Sheet Date, on the accounting records of the Corporation have been determined in accordance with GAAP, consistently applied, subject to normal year-end adjustments and the absence of disclosures normally made in notes to financial statements.
Section 3.15Insurance. Section 3.15 of the Disclosure Schedules sets forth a true and complete list of all current policies or binders of fire, liability, product liability, umbrella liability, real and personal property, workplace safety and insurance, workers’ compensation, vehicle, directors’ and officers’ liability, fiduciary liability and other casualty and property insurance maintained by Vendor or its Affiliates (including the Target Corporations) and relating to the Assets, Business, operations, employees, officers and directors of the Target Corporations (collectively, the “Insurance Policies”) and true and complete copies of each of the Insurance Policies have been made available to Purchaser. The Insurance Policies are in full force and effect and shall remain in full force and effect following the consummation of the transactions contemplated by this Agreement. Neither Vendor nor any of its Affiliates (including the Target Corporations) has received any written notice of cancellation of, premium increase with respect to, or alteration of coverage under, any of any Insurance Policies. All premiums due on the Insurance Policies have either been paid or, if due and payable before Closing, will be paid before Closing in accordance with the payment terms of each Insurance Policy. The Insurance Policies do not provide for any retrospective premium adjustment or other experience-based liability on the part of the Target Corporations. All such Insurance Policies: (a) are valid and binding in accordance with their terms; and (b) have not been subject to any lapse in coverage. There are no claims related to the Business pending under any Insurance Policies as to which coverage has been questioned, denied or disputed, or in respect of which there is an outstanding reservation of rights. None of Vendor or any of its Affiliates (including the Target Corporations) is in default under, or has otherwise failed to comply with, in any material respect, any provision contained in any Insurance Policy. The Insurance Policies are of the type and in the amounts customarily carried by Persons conducting a business that is similar to the Business of the Target Corporations and are sufficient for compliance with all applicable Laws and Contracts to which the Target Corporations are a party or by which they are bound.
Section 3.16Legal Proceedings; Governmental Orders
		(a)
	There are no Actions pending or, to Vendor’s Knowledge, threatened: (a) against or by the Target Corporations affecting any of their Assets (or by or against Vendor or any Affiliate thereof and relating to the Target Corporations); or (b) against or by the Target Corporations, Vendor or any Affiliate of Vendor that challenges or seeks to prevent, enjoin or otherwise 

​

26

delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.
		(b)
	There are no outstanding Governmental Orders and no unsatisfied judgments, penalties or awards against or affecting the Corporation or any of its Assets.

Section 3.17Compliance with Laws; Permits
		(a)
	The Target Corporations have complied, and are now complying, with all Laws applicable to them or their Business or Assets.

		(b)
	All Permits required for the Target Corporations to conduct their Business have been obtained by it and are valid and in full force and effect. All fees and charges with respect to such Permits as of the date hereof have been paid in full. Section 3.17(b) of the Disclosure Schedules lists all current Permits issued to the Target Corporations, including the names of the Permits and their respective dates of issuance and expiration. No event has occurred that, with or without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, lapse or limitation of any Permit set forth in Section 3.17(b) of the Disclosure Schedules.

Section 3.18Environmental Matters
		(a)
	The Target Corporations are: (i) in compliance with all applicable Environmental Laws; and (ii) possesses and is in compliance with all Environmental Permits necessary to operate the Business.

		(b)
	All such Environmental Permits are listed in Schedule 3.18(b) of the Disclosure Schedules. The Environmental Permits are in full force and effect. There are no Actions in progress, or, to Vendor’s Knowledge, pending or threatened, that may result in the cancellation, revocation or suspension of any Environmental Permit.

		(c)
	None of the Target Corporations, the Business or the Assets are the subject of any Remedial Order.

		(d)
	The Target Corporations have not received, in the past three years, any Environmental Notice alleging that the Target Corporations are in violation of or has any Liability under any Environmental Law that is unresolved.

		(e)
	The Target Corporations have not entered into or agreed to any consent, settlement or other agreement, nor are the Target Corporations subject to any Governmental Order in any judicial, administrative, arbitral or other forum relating to compliance with or Liabilities under any Environmental Law.

		(f)
	The Target Corporations have not released any Hazardous Substances at, on or under any part of the Real Property, and, to Vendor’s Knowledge, there are no Hazardous Substances present within the area bounded by the ceiling, walls and floor of any building on any leased Real Property (and excluding anything outside these boundaries), in each case except as would not reasonably be expected to result in a Liability under any Environmental Law.

		(g)
	The Target Corporations have made available to Purchaser all Environmental audits, assessments, reports and similar reviews, and all correspondence regarding Environmental 

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27

matters, to the extent that such records are in the possession or under the control of Vendor or the Target Corporations.
		(h)
	Neither Vendor nor the Target Corporations are aware of or reasonably anticipates, as of the Closing Date, any condition, event or circumstance concerning the Release or regulation of Hazardous Substances that might, after the Closing Date, prevent, impede or materially increase the costs associated with the ownership, lease, operation, performance or use of the Business or Assets of the Target Corporations as currently carried out.

Section 3.19Benefit Plans
		(a)
	Section 3.19(a) of the Disclosure Schedules contains a true and complete list of all Benefit Plans and all material documents that support each Benefit Plan. The Target Corporations are not a party to or bound by, nor do the Target Corporations have any Liability with respect to, any Benefit Plans other than those listed in Section 3.19(a) of the Disclosure Schedules.

		(b)
	There are no participating employers that have any obligations or Liabilities with respect to any Benefit Plan other than the Target Corporations, and the Target Corporations have no obligations or Liabilities under any Benefit Plan, including to provide benefits, to any Person who is not an employee, director or officer, or former employee, director or officer of the Target Corporations.

		(c)
	Each Benefit Plan complies with and is, and has been, established, registered (where required by Law), administered, funded and invested in all material respects in accordance with Law and the terms of such Benefit Plans, including the terms of the material documents that support such Benefit Plans.

		(d)
	With respect to each Benefit Plan, true and complete copies of each of the following documents, if applicable, have been made available to Purchaser: (i) the document(s) establishing the current terms of the Benefit Plan; and (ii) all other Contracts material to the Benefit Plan.

		(e)
	No Benefit Plan is a Pension Plan, and none of the Benefit Plans provide benefits beyond retirement or other termination of service to Employees or former employees of the Target Corporations or to the beneficiaries or dependents of such Employees or former employees.

		(f)
	The Target Corporations do not have any obligation to pay any change-in-control, sale, completion, incentive, stay, retention and similar bonuses or payments to any current or former employee as a result of the transactions contemplated by this Agreement.

		(g)
	Each Benefit Plan can be amended, terminated or otherwise discontinued after the Closing in accordance with its terms, without Liabilities to the Target Corporations other than ordinary administrative expenses typically incurred in a termination event. The Target Corporations have no commitment or obligation and has not made any representations to any employee, officer, director, Independent Contractor or consultant, whether or not legally binding, to adopt, amend, modify or continue any Benefit Plan or any Collective Agreement, in connection with the consummation of the transactions contemplated by this Agreement or otherwise.

		(h)
	The Target Corporations have not received any notice in writing of any pending investigations, and, to Vendor’s Knowledge, there are no pending or threatened investigations, by any Governmental Authority involving or relating to any Benefit Plan or any claims (except for 

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claims for benefits payable in the Ordinary Course operation of the Benefit Plans) or Actions against the Target Corporations in respect of any Benefit Plan.
		(i)
	Each individual who is classified by the Target Corporations as an Independent Contractor has been properly classified for purposes of participation and benefit accrual under each Benefit Plan.

Section 3.20Employment Matters
		(a)
	Section 3.20(a) of the Disclosure Schedules sets forth the list of Employees, which indicates: (i) the titles of all Employees and the location of their employment; (ii) the date each Employee was hired; (iii) which Employees are subject to a written employment agreement with the Target Corporations; (iv) the annual wage of each Employee at the date of such list, any bonuses paid to each Employee since the end of the Target Corporations’ last completed financial year and before the date of such list and all other bonuses, incentive schemes, benefits, commissions and other compensation to which each Employee is entitled; (v) the vacation days to which each Employee is entitled on the date of such list; and (vi) the Employees that are not actively working on the date of this Agreement due to leave of absence, illness, injury, accident or other disabling condition.

		(b)
	Section 3.20(b) of the Disclosure Schedules lists: (i) all Contracts with any Employee who is a manager or executive of the Target Corporations or is being provided with an annual compensation of more than $100,000; and (ii) all Contracts that provide for severance, termination or similar payments or entitlements of more than $10,000, including on a change of control of the Target Corporations.

		(c)
	Correct and complete copies of all the Contracts set out in Section 3.20(b) of the Disclosure Schedules have been made available to Purchaser and templates of the Contracts that describe all of the terms of the Contracts relating to the list of Employees set out in Section 3.17(a) of the Disclosure Schedules have been made available to Purchaser.

		(d)
	The Target Corporations are not currently, and have not been, a party to any Collective Agreement. No trade union, council of trade unions, employee bargaining agency or affiliated bargaining agent holds bargaining rights with respect to any of the Employees, including by way of certification, interim certification, voluntary recognition, related employer or successor employer rights, or, to the Vendor’s Knowledge, has applied or threatened to apply to be certified as the bargaining agent of any of the Employees.

		(e)
	Section 3.20(e) of the Disclosure Schedules lists: (i) all Persons who are currently performing services for the Target Corporations as Independent Contractors under a Contract; and (ii) the current rate of compensation of each such Person. Substantially all the Independent Contractors provide services to the Target Corporations under standard form agreements, and a copy of each standard form agreement has been made available to Purchaser.

		(f)
	No notice in writing has been received by the Target Corporations of any complaint filed by any of its Employees or former employees against the Target Corporations or any current or former director or officer thereof or, to Vendor’s Knowledge, is threatened or pending, claiming or alleging that the Target Corporations has violated any Laws applicable to the employee or human rights or of any complaints or Actions of any kind involving the Target Corporations or any of the Employees before any Governmental Authority, including a labour relations board, tribunal or commission.

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		(g)
	There has been no increase in compensation from the base salary payable to the Employees between the Balance Sheet Date and the date of this Agreement.

		(h)
	No Employee has stated that he or she will resign or retire or cease to provide work or services because of the closing of the transactions contemplated by this Agreement.

		(i)
	There is no notice of assessment, provisional assessment, reassessment, supplementary assessment, penalty assessment or increased assessment that the Target Corporations have received before the date of this Agreement from any workplace safety and insurance or workers’ compensation board or similar Governmental Authority in any jurisdiction where the Business is carried on that remain unpaid.

		(j)
	There are no outstanding Governmental Orders or any pending charges made under any Occupational Health and Safety Acts relating to the Corporation or the Business and there have been no fatal or critical accidents within the last three years that might reasonably be expected to lead to charges involving the Corporation under the Occupational Health and Safety Acts. The Corporation has complied with all Governmental Orders issued under the Occupational Health and Safety Acts in all respects.

		(k)
	Each Independent Contractor, including the Independent Contractors who are listed in Section 3.20(k) of the Disclosure Schedules, has been properly classified as an independent contractor and the Corporation has not received any notice in writing or any [material] oral notice from any Governmental Authority disputing such classification.

Section 3.21Taxes. Except as set forth in Section 3.21 of the Disclosure Schedules:
		(a)
	The Target Corporations have duly filed all its Tax Returns with all appropriate Governmental Authorities. Each such Tax Return was true, correct and complete in all material respects, except for the Tax Returns which were filed for the financial periods ended December 31st, 2018 and December 31st, 2019, which have been re-filed by the Target Corporations. All Taxes due and payable by the Target Corporations for periods (or portions thereof) ending on or before the Closing Date (whether or not shown due on any Tax Returns and whether or not assessed or reassessed by the appropriate Governmental Authority) have been paid.

		(b)
	No Governmental Authority of a jurisdiction in which the Target Corporations has not filed a Tax Return has made any claim that the Target Corporations are or may be subject to Tax or required to file Tax Returns by that Governmental Authority in such jurisdiction. There is no basis for a claim that the Target Corporations are subject to Tax in a jurisdiction in which the Target Corporations do not file Tax Returns.

		(c)
	There are no matters under audit or appeal with any Governmental Authority relating to Taxes of the Target Corporations, except for the Tax Returns which were filed for the financial period ended December 31st, 2018, which have been re-filed by the Target Corporations.

		(d)
	True copies of all Tax Returns prepared and filed by the Target Corporations during the past three years, together with any notices of assessment of the Corporation during the past three years, have been made available to Purchaser on or before the date of this Agreement.

		(e)
	Adequate provision has been made in accordance with GAAP in the Books and Records for all Taxes payable in respect of the Business or the Assets.

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		(f)
	The Target Corporations have not received any notice from any Governmental Authority that it is taking steps to assess any additional Taxes against the Target Corporations for any period for which Tax Returns have been filed and, to Vendor’s Knowledge, there are no actual or pending audit investigations or other Actions of, or against, the Target Corporations by any Governmental Authority relating to Taxes, except in respect of the Tax Returns which were filed for the financial period ended December 31, 2018, which have been re-filed by the Target Corporations. No Governmental Authority has given notice of any intention to assert any deficiency or claim for additional Taxes against the Target Corporations.

		(g)
	The Target Corporations have not waived any statute of limitation in respect of Taxes or agreed to any extension of time within which: (i) to file any Tax return covering any Taxes for which the Target Corporations are or may be liable; (ii) the Target Corporations are required to pay or remit amounts on account of Taxes; or (iii) any Governmental Authority may assess or collect Taxes for which the Target Corporations may be liable.

		(h)
	Neither Vendor nor the Corporation is a non-resident of Canada within the meaning of the Tax Act.

		(i)
	The Target Corporations have duly and timely withheld or collected the proper amount of Taxes that are required by Law to be withheld or collected (including Taxes and other amounts required to be withheld by it in respect of any Person, including any employee, officer or director and any Person not resident in Canada for purposes of the Tax Act) and have duly and timely remitted to the appropriate Governmental Authority such Taxes and other amounts required to be remitted by the Target Corporations.

		(j)
	Except for the acquisition of control that will occur by virtue of the execution of this Agreement, for purposes of the Tax Act or any other applicable Tax Law, no Person or group of Persons other than the Vendor has ever acquired control of the Target Corporations.

		(k)
	None of section 78, 80, 80.01, 80.02, 80.03 or 80.04 of the Tax Act, or any equivalent provision of the Tax Law of any province, territory or any other jurisdiction, has applied or will apply to the Target Corporations at any time up to and including the Closing Date in a manner that would give rise to incremental Tax liabilities or reduction in Tax attributes.

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		(l)
	The Target Corporations have not acquired property or services from, or disposed of property to, a non-arm’s length Person (within the meaning of the Tax Act) for consideration, the value of which is less than the fair market value of the property or services, as the case may be.

		(m)
	Based on financial information available on the date of this Agreement, the only reserves under the Tax Act or any equivalent provincial or territorial Law anticipated by Vendor to be claimed by the Target Corporations for the taxation year deemed under section 249(4) of the Tax Act to have ended as a result of the transactions consummated by this Agreement are set forth in Section 3.18(m) of the Disclosure Schedules.

		(n)
	The Corporation is registered for HST/GST purposes under Part IX of the Excise Tax Act (Canada) under registration number 814005203RT001 and QST under the QST Act under registration number 1218024005TQ0001.

		(o)
	The Target Corporations are not a party to, or bound by, any Tax indemnity, Tax-sharing or Tax-allocation agreement.

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		(p)
	No Tax rulings have been requested or issued by any Tax authority with respect to the Target Corporations.

		(q)
	The Target Corporations will not be required to include any item of income in, or exclude any item or deduction from, taxable income for any taxation year or portion thereof ending after the Closing Date as a result of use of an improper method of accounting, for a taxation year ending before the Closing Date.

		(r)
	The Corporation is a “Canadian-controlled private corporation” as defined in the Tax Act and has been a Canadian-controlled private corporation continuously since incorporation.

		(s)
	Section 3.21(s) of the Disclosure Schedules sets forth all foreign jurisdictions in which the Target Corporations are subject to Tax, are engaged in business or have a permanent establishment.

Section 3.22Related-Party Transactions. Except as set forth in Section 3.22 of the Disclosure Schedules:
		(a)
	The Corporation has not made any payment or loan to, or borrowed any monies from or is otherwise indebted to, any officer, director, employee, trustee or shareholder, or any Person with whom the Corporation is not dealing at arm’s length (within the meaning of the Tax Act) or any Affiliate or spouse of any of the foregoing (each, a “Related Person”).

		(b)
	Neither Vendor nor any Affiliate of Vendor (each, a “Related Party”) is a party to any Contract with the Corporation, no Related Party is indebted to the Corporation and the Corporation is not indebted to any Related Party.

		(c)
	No Related Person: (i) to Vendor’s Knowledge, possesses, directly or indirectly, any financial interest in, or is a director, officer or employee of, any Person that is a competitor or material supplier, dealer, lessor or lessee of the Target Corporations; or (ii) has any interest in any material assets used or held for use by the Target Corporations.

Section 3.23Books and Records. The Books and Records of the Target Corporations, all of which have been made available to Purchaser, are complete and correct and have been maintained in accordance with sound business practices. The minute books of the Target Corporations contain accurate and complete records of all meetings, and resolutions in writing of, the shareholders, the board of directors and any committees of the board of directors of the Target Corporations, and no meeting, or resolution in writing, of any such shareholders, board of directors or committee has been held for which minutes or resolutions in writing have not been prepared and are not contained in such minute books. At the Closing, all the Books and Records will be in the possession of the Target Corporations.
Section 3.24Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Vendor or the Target Corporations.
Section 3.25Anti-Money Laundering and Anti-Corruption Practices
		(a)
	None of the Target Corporations nor any of their directors, officers or employees or, to Vendor’s Knowledge, agents, consultants or representatives:

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		(i)
	has violated, and Vendor’s execution and delivery of and performance of its obligations under this Agreement will not violate, any Laws related to money laundering or government guidance regarding anti-money laundering and international anti-money-laundering principles or procedures of an intergovernmental group or organization and any executive order, directive or regulation under the authority of any of the foregoing, or any orders or licences issued thereunder, in each case to which either the Target Corporations or Vendor is subject;

		(ii)
	has, in the course of its actions for, or on behalf of, the Target Corporations (A) knowingly used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (B) paid or received any bribe or otherwise unlawfully offered or provided, directly or indirectly, anything of value to (or received anything of value from) any foreign or domestic government employee or official or any other Person, (C) violated or taken any act that would violate any provision of the Corruption of Foreign Public Officials Act (Canada) (“CFPOA”), the Foreign Corrupt Practices Act of 1977 (United States) (“FCPA”) or other similar Laws of other jurisdictions, (D) violated or taken any act that would violate any provision of the Bribery Act (UK) or other similar Laws of other jurisdictions, (E) violated or taken any act that would violate the Special Economic Measures Act (Canada) (“SEMA”) or other similar Laws of other jurisdictions, or (F) violated or taken any act that would violate the Freezing Assets of Corrupt Foreign Public Officials Act (Canada) (“FACFOA”) or other similar Laws of other jurisdictions, in each case to which the Target Corporations are subject;

		(iii)
	has, directly or indirectly, taken any action in violation of any export restrictions, anti-boycott regulations, embargo regulations or other similar applicable Canadian, United States or other foreign Laws;

		(iv)
	is a “specially designated national” or “blocked person” under United States sanctions administered by the Office of Foreign Assets Control of the United States Department of the Treasury (“OFAC”), a Person identified under SEMA, FACFOA or any United Nations resolution or regulation or otherwise a target of economic sanctions under other similar applicable Canadian, United States or foreign Laws; or

		(v)
	has engaged in any business with any Person with whom, or in any country in which it is prohibited for a Person to engage under SEMA, FACFOA, any United Nations resolution or regulation or any other Law or it is prohibited for a United States Person to engage under Law or under applicable United States sanctions administered by OFAC.

		(b)
	The Target Corporations have adopted, implemented and maintained policies and procedures designed to ensure, and which are reasonably expected to ensure, continued compliance with Laws related to money laundering, CFPOA, SEMA, FACFOA and FCPA and the UK Bribery Act to the extent applicable.

Section 3.26Full Disclosure. No representation or warranty by Vendor in this Agreement and no statement contained in the Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Purchaser under this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in the light of the circumstances in which they are made, not misleading.
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ARTICLE IV
Representations and Warranties of Purchaser
Except as set forth in the correspondingly numbered Section of the Disclosure Schedules, Purchaser represents and warrants to Vendor that the statements contained in this ARTICLE IV are true and correct as of the date hereof.
Section 4.01Corporate Status and Authorization of Purchaser. Purchaser is a corporation incorporated and validly existing under the Laws of the province of Québec and has not been discontinued or dissolved under such Laws. No steps or proceedings have been taken to authorize or require such discontinuance or dissolution. Purchaser has submitted all notices or returns of corporate information and other filings required by Law to be submitted by it to any Governmental Authority. Purchaser has the corporate power and capacity to enter into this Agreement and the other Transaction Documents to which Purchaser is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Purchaser of this Agreement and any other Transaction Document to which Purchaser is a party, the performance by Purchaser of its obligations hereunder and thereunder and the consummation by Purchaser of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Purchaser. This Agreement has been duly executed and delivered by Purchaser, and (assuming due authorization, execution and delivery by Vendor) this Agreement constitutes a legal, valid and binding obligation of Purchaser enforceable against Purchaser in accordance with its terms. When each other Transaction Document to which Purchaser is or will be a party has been duly executed and delivered by Purchaser (assuming due authorization, execution and delivery by each other party thereto), such Transaction Document will constitute a legal, valid and binding obligation of Purchaser enforceable against it in accordance with its terms.
Section 4.02No Conflicts; Consents. The execution, delivery and performance by Purchaser of this Agreement and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the Articles, by-laws, unanimous shareholder agreements or other constating documents of Purchaser; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable to Purchaser; or (c) except as set forth in Section 4.02 of the Disclosure Schedules, require the consent, notice or other action by any Person under any Contract to which Purchaser is a party. No consent, approval, Permit, Governmental Order, declaration or filing with, or notice to, any Governmental Authority is required by or with respect to Purchaser in connection with the execution and delivery of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, except as contemplated in Section 6.01 and such consents, approvals, Permits, Governmental Orders, declarations, filings or notices which, in the aggregate, would not have a Material Adverse Effect.
Section 4.03Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Purchaser.
Section 4.04Sufficiency of Funds. Purchaser has sufficient cash on hand or other sources of immediately available funds to enable it to make payment of the Purchase Price and consummate the transactions contemplated by this Agreement.
Section 4.05Legal Proceedings. There are no Actions pending or, to Purchaser’s knowledge, threatened against or by Purchaser or any Affiliate of Purchaser that 
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challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise or serve as a basis for any such Action.
Section 4.06Investment Canada Act. Purchaser is not a “non-Canadian” within the meaning of the ICA.
ARTICLE V
Covenants
Section 5.01Resignations. Vendor shall deliver to Purchaser written resignations, effective as of the Closing Date, of the officers and directors of the Target Corporations.
Section 5.02Confidentiality. From and after the Closing, Vendor shall, and shall cause its Affiliates to, hold, and shall use its reasonable best efforts to cause its or their respective Representatives to hold, in confidence any and all information, whether written or oral, concerning the Target Corporations, except to the extent that Vendor can show that such information: (a) is generally available to, and known by, the public through no fault of Vendor, any of its Affiliates or any of their respective Representatives; or (b) is lawfully acquired by Vendor, any of its Affiliates or any of their respective Representatives from sources that are not prohibited from disclosing such information by a legal, contractual or fiduciary obligation. If Vendor, any of its Affiliates or any of their respective Representatives are compelled to disclose any information by judicial or administrative process or by other requirements of Law, Vendor shall promptly notify Purchaser in writing and shall disclose only that portion of such information that Vendor is advised by its counsel in writing is legally required to be disclosed; provided that Vendor shall use its reasonably best efforts to obtain an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information.
Section 5.03Personal Information Privacy. Purchaser shall, at all times, comply with all Laws governing the protection of personal information with respect to Personal Information disclosed or otherwise provided to Purchaser by Vendor or the Target Corporations under this Agreement. Purchaser shall only collect, use or disclose such Personal Information for the purposes of investigating the Target Corporations and the Business as contemplated in this Agreement and completing the transactions contemplated in this Agreement. Purchaser shall safeguard all Personal Information collected from Vendor or the Target Corporations in a manner consistent with the degree of sensitivity of the Personal Information and maintain, at all times, the security and integrity of the Personal Information. Purchaser shall not make copies of the Personal Information or any excerpts thereof or in any way recreate the substance or contents of the Personal Information if the purchase of the Shares is not completed for any reason and shall return all Personal Information to Vendor or, at Vendor’s request, destroy such Personal Information at Vendor’s sole cost.
Section 5.04Non-Competition; Non-Solicitation
		(a)
	For a period commencing on the Closing Date and ending on the date that is the later of one (1) year after the Closing Date or, if the Vendor or its Affiliate has entered into an Employment Agreement, six (6) months after the expiration or termination of the Vendor’s or its Affiliate’s Employment Agreement (the “Restricted Period”), Vendor shall not, and shall not permit any of its Affiliates to, directly or indirectly: (i) engage in or assist others in engaging in any business that would be directly or indirectly competitive with the Target Corporations as of the Closing Date in the Territory; (ii) have an interest in any Person that engages directly or indirectly in any business that would be directly or indirectly competitive with the Target Corporations as of the Closing Date in the Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or consultant; or (iii) intentionally 

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interfere in any material respect with the business relationships (whether formed before or after the date of this Agreement) between the Target Corporations and customers or suppliers of the Target Corporations. Notwithstanding the foregoing, Vendor may own, directly or indirectly, solely as an investment, securities of any Person traded on any stock exchange if Vendor is not a controlling Person of, or a member of a group that controls, such Person and does not, directly or indirectly, own 5% or more of any class of securities of such Person.
		(b)
	During the Restricted Period, Vendor shall not, and shall not permit any of its Affiliates to, directly or indirectly, hire or solicit any Employee or encourage any Employee to leave his or her employment or hire any Employee who has left such employment, except pursuant to a general solicitation that is not directed specifically to any such employees; provided that nothing in this Section 5.04(b) shall prevent Vendor or any of its Affiliates from hiring: (i) any Employee whose employment has been terminated by the Target Corporations or Purchaser; or (ii) after 180 days from the date of termination of employment, any Employee whose employment has been terminated by the Employee.

		(c)
	During the Restricted Period, Vendor shall not, and shall not permit any of its Affiliates to, directly or indirectly, solicit or entice, or attempt to solicit or entice, any clients or customers of the Target Corporations or potential clients or customers of the Target Corporations for purposes of diverting their business or services from the Target Corporations.

		(d)
	Vendor acknowledges that a breach or threatened breach of this Section 5.08 would give rise to irreparable harm to Purchaser, for which monetary damages would not be an adequate remedy, and hereby agrees that, in the event of a breach or a threatened breach by Vendor of any such obligations, Purchaser shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an interim or permanent injunction, specific performance and any other relief that may be available from a court of competent equitable jurisdiction (without any requirement to post a bond or other security).

		(e)
	Vendor acknowledges that the restrictions contained in this Section 5.04 are reasonable and necessary to protect the legitimate interests of Purchaser and constitute a material inducement to Purchaser’s entering into this Agreement and consummating the transactions contemplated by this Agreement. The covenants contained in this Section 5.04 and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

		(f)
	Restrictive Covenant.  The parties hereto intend that the conditions set forth in section 56.4(7) of the Tax Act have been satisfied such that section 56.4(5) of the Tax Act applies to any “restrictive covenants” (as defined in section 56.4(1) of the Tax Act) granted by Vendor under this Agreement with respect to the Business (collectively, the “Restrictive Covenants”). Accordingly, the parties hereto acknowledge and agree that: (i) no proceeds shall be received or receivable by Vendor for granting the Restrictive Covenants for purposes of section 56.4(7)(d) of the Tax Act; and (ii) the Restrictive Covenants are integral to this Agreement and have been granted to maintain or preserve the fair market value of the Shares.

Section 5.05Other Approvals and Consents
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		(a)
	Vendor and Purchaser shall use their respective commercially reasonable efforts to give all notices to, and obtain all consents from, all third parties that are described in Section 3.05 and Section 4.02 of the Disclosure Schedules.

		(b)
	If any consent, approval or authorization necessary to preserve any right or benefit under any Contract to which the Target Corporations are a party is not obtained before the Closing, Vendor shall, after the Closing, cooperate with Purchaser and the Target Corporations in attempting to obtain such consent, approval or authorization as promptly thereafter as practicable. If such consent, approval or authorization cannot be obtained, Vendor shall use its commercially reasonable efforts to provide the Target Corporations with the rights and benefits of the affected Contract for the term thereof and, if Vendor provides such rights and benefits, the Target Corporations shall assume all obligations and burdens thereunder.

Section 5.06Books and Records
		(a)
	To facilitate the resolution of any claims made against or incurred by Vendor before the Closing or, for any other reasonable purpose, for a period of ten (10) years after the Closing, Purchaser shall:

		(i)
	retain the Books and Records (including personnel files) of the Target Corporations relating to periods before the Closing in a manner reasonably consistent with the prior practices of the Target Corporations; and

		(ii)
	upon reasonable notice, afford the Representatives of Vendor reasonable access (including the right to make, at Vendor’s expense, photocopies), during normal business hours, to the Books and Records.

		(b)
	To facilitate the resolution of any claims made by or against or incurred by the Target Corporations after the Closing, or for any other reasonable purpose, for a period of ten (10) years after the Closing, Vendor shall:

		(i)
	retain the Books and Records (including personnel files) of Vendor that relate to the Target Corporations and its operations for periods before the Closing; and

		(ii)
	upon reasonable notice, afford the Representatives of Purchaser or the Target Corporations reasonable access (including the right to make, at Purchaser’s expense, photocopies), during normal business hours, to the Books and Records.

		(c)
	Neither Purchaser nor Vendor shall be obligated to provide the other party with access to any Books or Records (including personnel files) under this Section 5.06 where such access would violate any Law.

Section 5.07Benefit Plans and Employees
		(a)
	On Closing, the participation of the Employees in the Benefit Plans will cease and Vendor shall, subject to this Section 5.07(a) and Section 5.07(d) cease to have any liability or obligation to the Corporation, the Employees or any former employees of the Corporation.

		(b)
	Purchaser agrees to provide or cause the Target Corporations to establish and provide, effective as of the Closing Date, benefit plans that contain benefit provisions that are substantially similar in the aggregate to those provided under the existing Benefit Plans immediately before the Closing Date (the “Purchaser Benefit Plans”). Purchaser will use 

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commercially reasonable efforts to obtain waiver of insurability requirements, actively at work requirements, pre-existing conditions, exclusions and eligibility periods in respect of the Purchaser Benefit Plans and shall honour any deductible, co-payments, co-insurance or out-of-pocket expenses paid or incurred by such Employees, including with respect to their covered dependents, under the Benefit Plans from the beginning of the current coverage period to the Closing Date, as though such amounts had been paid in accordance with the terms and conditions of the Purchaser Benefit Plans; provided that, during the period from the Closing Date to the end of the current coverage period, for the purposes of determining the maximum benefit under a Purchaser Benefit Plan, Purchaser may recognize amounts that had been paid before the Closing in such current coverage period in respect of an Employee under a corresponding Benefit Plan. Without limiting the foregoing, any Employee’s maximum benefit amount recognized under a Benefit Plan will remain unchanged and in place for the remainder of the calendar year under the comparable Purchaser Benefit Plan upon Closing. Nothing in this Section 5.07(b) prohibits Purchaser from changing any of the provisions under the Purchaser Benefit Plans at any time.
		(c)
	Purchaser shall indemnify and hold harmless the Vendor in respect of any Liability owed to Employees to the extent resulting from the Purchaser Benefit Plans or constructive dismissal or breach of contract claims that arise after Closing relating to the Purchaser Benefit Plans or the other terms and conditions of the Employees after Closing but excluding any Liability that Purchaser was unaware of as a result of a breach by Vendor of any of its representations and warranties in this Agreement (without reference to any survival period otherwise provided in this Agreement).

		(d)
	Purchaser shall not be responsible for Pre-Closing Benefit Liability or any Equity Compensation Plan Liability, and Vendor shall indemnify Purchaser for any, and all, Pre-Closing Benefit Liability and Equity Compensation Liability under Section 7.02.

Section 5.08Pre-Closing Tax Period and Closing Date Tax Year
		(a)
	On or before the statutory due date, Vendor shall prepare in accordance with applicable Law and past practice of the Target Corporations and after providing Purchaser with a reasonable opportunity (which, in any event, shall not be fewer than 15 Business Days before the date on which such Tax Returns are required to be filed) to review and, in the case of any Tax Returns upon receipt of Purchaser’s approval, not to be unreasonably withheld, conditioned or delayed, file, on behalf of and in the name of the Corporation, all income Tax Returns of the Target Corporations required by Law to be filed for any Pre-Closing Tax Period of the Target Corporations that are not required to be filed on or before the Closing Date.

		(b)
	On or before the statutory due date, Purchaser shall prepare in accordance with applicable Law and past practice of the Target Corporations and after providing Vendor with a reasonable opportunity (which, in any event, shall not be fewer than 15 Business Days before the date on which such Tax Returns are required to be filed) to review and, in the case of any Tax Returns upon receipt of Vendor’s approval, not to be unreasonably withheld, conditioned or delayed, file, on behalf of and in the name of the Target Corporations, all income Tax Returns of the Target Corporations required by Law to be filed for the taxation year of the Target Corporations that includes the Closing Time (the “Closing Date Tax Year”).

		(c)
	After Closing, Purchaser shall provide, and shall cause the Target Corporations to provide, to Vendor such information and assistance as is reasonably requested by the Vendor for the purposes of preparing the Tax Returns referred to in Section 5.08(a).

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		(d)
	The parties will inform each other of, and cooperate with each other in respect of, any audit inquiries with respect to any Tax Return involving the Target Corporations in respect of any Pre-Closing Tax Period or in connection with the Closing.

		(e)
	If Purchaser or the Target Corporations receive an assessment or reassessment (each, an “Assessment”) from any Governmental Authority in respect of any Tax Return in respect of any Pre-Closing Tax Period or any Tax Return filed under the Tax Act for the Closing Date Tax Year, Purchaser shall deliver or cause to be delivered to Vendor a copy of the Assessment within 30 days of receiving the Assessment, provided that the failure to do so shall not affect the indemnification provided hereunder except only to the extent that Vendor shall have been actually prejudiced as a result of such failure. The parties will cooperate in responding to or contesting any Assessment.

Section 5.09Public Announcements. Unless otherwise required by applicable Law or stock exchange requirements (based upon the reasonable advice of counsel), no party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.
Section 5.10Public Company Obligations. The Parties acknowledge that, as subsidiaries of a publicly traded company listed on the NASDAQ Capital Market, the Target Corporations may become subject to reporting or disclosure requirements of Canadian securities regulatory authorities, the United States Securities and Exchange Commission and/or the NASDAQ stock exchange in connection with the transactions contemplated by this Agreement. The Parties agree to work collaboratively to perform all such acts and things as may be required and to execute and deliver any and all documents or instruments necessary to comply with such requirements.
Section 5.11Further Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances and assurances, and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement.
ARTICLE VI
Conditions to Closing
Section 6.01Conditions to Obligations of All Parties. The obligations of each party to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at or before the Closing, of each of the following conditions:
		(a)
	No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Governmental Order that is in effect and has the effect of making the transactions contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation of such transactions or causing any of the transactions contemplated hereunder to be rescinded following the completion thereof.

		(b)
	The Parties shall have obtained all necessary and required third party consents as well as regulatory approvals of the transactions contemplated by this Agreement, including, without limitation, all necessary approvals from any Governmental Authorities, including any stock exchange, which the Parties have endeavoured to work collaboratively to apply and exert all commercially reasonable efforts to obtain the forgoing and foresaid consents and approvals.

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		(c)
	At Closing, Cynthia Guimond, Simon Oliel, and Philippe Pellerin (the “Managers”) shall enter into employment agreements with EB Rental (the “Employment Agreements”), for a term of three (3) years beginning on the Closing Date, with a renewal option for an additional term of one (1) year, with the purpose of managing the operations of each rental location of EB Rental, including but not limited to human resources, accounting, books and records, repairs of boats, purchases of boats, website and social media management, in addition to scaling and expanding EB Rental, in accordance with the terms and conditions of the Employment Agreements. The Employment Agreements shall contain the following provisions, among others:

		(i)
	The renumeration of each of the Managers shall consist of a base salary in the sum of $200,000 USD per year. In addition, each of the Managers shall be entitled to receive a guaranteed quarterly bonus of $50,000 USD per quarter, to be paid either in cash or by the issuance of common shares of the Purchaser, at the option of the Manager, for each new rental location of EB Rental or of the Purchaser opened during the term of the Employment Agreements, beginning in the quarter following the opening of such new rental location (by way of example, if EB Rental has three locations, then each Manager shall receive a quarterly bonus of $100,000 USD per quarter).

		(ii)
	In the event that the term of an Employment Agreement is renewed for an additional term of one (1) year, the Purchaser shall issue options to purchase 50,000 common shares of the Purchaser (the “Options”) to the relevant Manager at an exercise price equal to the closing price per share of the common shares of the Purchaser on the NASDAQ Capital Market as of the date of grant of the options, subject to the terms and conditions of the Purchaser’s Share Option Plan, as amended and restated from time to time (the “Share Option Plan”). The Options shall vest as follows:

		(A)
	As to 25% on the date that is 12 months following the date of grant of the Options;

		(B)
	A further 2.0833% will be vested at the end of each period of 1 month commencing on the date that is the last day of the month following the month in which the first anniversary of the date of grant of the Options occurs, so that (subject to the provisions of the Share Option Plan) the Options are fully vested on the date that is 48 months following the date of grant of the Options.

		(iii)
	Each Manager shall receive a housing allowance of $4,500 USD per month if such Manager incurs monthly housing costs.

		(iv)
	Each Manager shall receive a car rental allowance of $1,000 USD per month.

		(v)
	Each Manager shall be reimbursed for reasonable travel expenses for travel between Montréal, Québec, and the cities in which EB Rental conducts business and to which the Manager is required to travel in the course of performing their services.

		(vi)
	The positions of the Managers in EB Rental following the Closing shall be as follows:

Cynthia Guimond:General Manager
Simon Oliel:VP Operations
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Philippe Pellerin: VP Finance
Section 6.02Conditions to Obligations of Purchaser. The obligations of Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Purchaser’s waiver, at or before the Closing, of each of the following conditions:
		(a)
	Other than the representations and warranties of Vendor set out in Section 3.01, Section 3.02, Section 3.03, Section 3.06 and Section 3.24, the representations and warranties of Vendor set out in this Agreement, the other Transaction Documents and any certificate or other writing delivered pursuant hereto shall be true and correct in all respects (in the case of any representation or warranty qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified by materiality or Material Adverse Effect) on and as of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined as of that specified date in all respects). The representations and warranties of Vendor set out in Section 3.01, Section 3.02, Section 3.03, Section 3.06 and Section 3.24 shall be true and correct in all respects on and as of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined as of that specified date in all respects).

		(b)
	Vendor shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this Agreement and each of the other Transaction Documents to be performed or complied with by it before or on the Closing Date; provided that, with respect to agreements, covenants and conditions that are qualified by materiality, Vendor shall have performed such agreements, covenants and conditions, as so qualified, in all respects.

		(c)
	No Action shall have been commenced against Purchaser, Vendor or the Target Corporations that would prevent the Closing. No injunction or restraining order shall have been issued by any Governmental Authority and be in effect, which restrains or prohibits any transaction contemplated hereby.

		(d)
	All approvals, consents and waivers that are listed in Section 3.05 of the Disclosure Schedules shall have been received, and executed counterparts thereof shall have been delivered to Purchaser, at or before the Closing.

		(e)
	From the date of this Agreement, there shall not have occurred any Material Adverse Effect, nor shall any event or events have occurred that, individually or in the aggregate, with or without the lapse of time, could reasonably be expected to result in a Material Adverse Effect.

		(f)
	The Transaction Documents (other than this Agreement) shall have been executed and delivered by the parties thereto, and true and complete copies thereof shall have been delivered to Purchaser.

		(g)
	Purchaser shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of Vendor, that each of the conditions set forth in Section 6.02(a) and Section 6.02(b) has been satisfied.

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		(h)
	Purchaser shall have received a certificate of the Secretary (or equivalent officer) of Vendor certifying that attached thereto are true and complete copies of all resolutions adopted by the shareholder(s) and the board of directors of Vendor authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby.

		(i)
	Purchaser shall have received resignations of the directors and officers of the Corporation under Section 5.01.

		(j)
	Vendor shall have delivered to Purchaser a certificate of compliance (or its equivalent) for the Corporation from the Director appointed under the Canada Business Corporations Act/Business Corporations Act or similar Governmental Authority of the jurisdiction under the Laws in which the Target Corporations are incorporated.

		(k)
	Vendor shall have delivered to Purchaser a certificate stating that Vendor is not a non-resident of Canada within the meaning of the Tax Act.

		(l)
	Vendor shall have delivered, or caused to be delivered, to Purchaser share certificates representing the Shares, free and clear of Encumbrances, duly endorsed in blank or accompanied by forms of share transfers or other instruments of transfer duly executed in blank.

		(m)
	Vendor shall have delivered to Purchaser such other documents or instruments as Purchaser reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

Section 6.03Conditions to Obligations of Vendor. The obligations of Vendor to consummate the transactions contemplated by this Agreement shall be subject to the fulfillment or Vendor’s waiver, at or before the Closing, of each of the following conditions:
		(a)
	Other than the representations and warranties of Purchaser set out in Section 4.01 and Section 4.03, the representations and warranties of Purchaser set out in this Agreement, the other Transaction Documents and any certificate or other writing delivered pursuant hereto shall be true and correct in all respects (in the case of any representation or warranty qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified by materiality or Material Adverse Effect) on and as of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date (except those representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined as of that specified date in all respects). The representations and warranties of Purchaser set out in Section 4.01 and Section 4.03 shall be true and correct in all respects on and as of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date.

		(b)
	Purchaser shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by this Agreement and each of the other Transaction Documents to be performed or complied with by it before or on the Closing Date; provided that, with respect to agreements, covenants and conditions that are qualified by materiality, Purchaser shall have performed such agreements, covenants and conditions, as so qualified, in all respects.

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		(c)
	No injunction or restraining order shall have been issued by any Governmental Authority, and be in effect, that restrains or prohibits any material transaction contemplated hereby.

		(d)
	All approvals, consents and waivers that are listed in Section 4.02 of the Disclosure Schedules shall have been received, and executed counterparts thereof shall have been delivered to Vendor, at or before the Closing.

		(e)
	The Transaction Documents (other than this Agreement) shall have been executed and delivered by the parties thereto, and true and complete copies thereof shall have been delivered to Vendor.

		(f)
	Vendor shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of Vendor, that each of the conditions set forth in Section 6.03(a) and Section 6.03(b) has been satisfied.

		(g)
	Vendor shall have received a certificate of the Secretary of Purchaser certifying that attached thereto are true and complete copies of all resolutions adopted by the board of directors of Purchaser authorizing the execution, delivery and performance of this Agreement and the other Transaction Documents and the consummation of the transactions contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby.

		(h)
	Vendor shall have received a certificate of the Secretary (or equivalent officer) of Purchaser certifying the names and signatures of the officers of Purchaser authorized to sign this Agreement, the Transaction Documents and the other documents to be delivered hereunder and thereunder.

		(i)
	Purchaser shall have delivered to Vendor cash in an amount equal to the AM Cash Consideration Amount, SO Cash Consideration Amount, and PP Cash Consideration Amount, as applicable, by certified cheque or wire transfer in immediately available funds, to an account or accounts designated at least two Business Days before the Closing Date by Vendor in a written notice to Purchaser.

		(j)
	Purchaser shall have delivered, or caused to be delivered, to Vendor share certificates representing the AM Purchaser Shares, SO Purchaser Shares, and PP Purchaser Shares, as applicable, free and clear of Encumbrances.

		(k)
	Purchaser shall have delivered to Vendor such other documents or instruments as Vendor reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

ARTICLE VII
Indemnification
Section 7.01Survival. Subject to the limitations and other provisions of this Agreement, the representations and warranties set out herein shall survive the Closing and shall remain in full force and effect until the date that is thirty-six (36) months from the Closing Date; provided that the representations and warranties in: (a) Section 3.01, Section 3.03, Section 3.24, Section 4.01 and Section 4.03 shall survive indefinitely; and (b) Section 3.19 and Section 3.21 shall survive for the full period of the applicable limitation period (giving effect to any waiver or extension thereof) plus 60 days. All covenants and agreements of the parties set out herein shall survive the Closing indefinitely or for the period explicitly specified therein. Notwithstanding the foregoing, any claims asserted in good faith with reasonable specificity (to the extent 
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43

known at such time) and in writing by notice from the non-breaching party to the breaching party before the expiration date of the applicable survival period shall not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally resolved or the expiry of the limitation period under applicable Law, whichever is sooner.
Section 7.02Indemnification by Vendor. Subject to the other terms and conditions of this ARTICLE VII, Vendor shall indemnify and defend each of Purchaser and its Affiliates (including the Target Corporations) and their respective Representatives (collectively, the “Purchaser Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Purchaser Indemnitees based upon, arising out of, with respect to or by reason of:
		(a)
	any inaccuracy in or breach of any of the representations or warranties of Vendor set out in this Agreement or in any certificate or instrument delivered by or on behalf of Vendor under this Agreement, as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); or

		(b)
	any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Vendor under this Agreement.

Section 7.03Indemnification by Purchaser. Subject to the other terms and conditions of this ARTICLE VII, Purchaser shall indemnify and defend each of Vendor and its Affiliates and their respective Representatives (collectively, the “Vendor Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses incurred or sustained by, or imposed upon, the Vendor Indemnitees based upon, arising out of, with respect to or by reason of:
		(a)
	any inaccuracy in or breach of any of the representations or warranties of Purchaser contained in this Agreement or in any certificate or instrument delivered by or on behalf of Purchaser under this Agreement, as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); or

		(b)
	any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Purchaser under this Agreement.

Section 7.04Certain Limitations. The indemnification provided for in Section 7.02 and Section 7.03 shall be subject to the following limitations:
		(a)
	For purposes of this ARTICLE VII, any inaccuracy in or breach of any representation or warranty shall be determined without regard to any materiality, Material Adverse Effect or other similar qualification contained in or otherwise applicable to such representation or warranty.

Section 7.05Indemnification Procedures. The party making a claim under this ARTICLE VII is referred to as the “Indemnified Party”, and the party against whom such claims are asserted under this ARTICLE VII is referred to as the “Indemnifying Party”.
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44

		(a)
	Third-Party Claims. If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing (a “Third-Party Claim”) against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 calendar days after receipt of such notice of such Third-Party Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defences by reason of such failure. Such notice by the Indemnified Party shall describe the Third-Party Claim in reasonable detail, include copies of all material written evidence thereof and indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defence of any Third-Party Claim at the Indemnifying Party’s expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defence; provided that, if the Indemnifying Party is Vendor, such Indemnifying Party shall not have the right to defend or direct the defence of any such Third-Party Claim that: (i) is asserted directly by or on behalf of a Person that is a supplier or customer of the Target Corporations; or (ii) seeks an injunction or other equitable relief against the Indemnified Party. If the Indemnifying Party assumes the defence of any Third-Party Claim, subject to Section 7.05(b), it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counter-claims pertaining to any such Third-Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the defence of any Third-Party Claim with counsel selected by it subject to the Indemnifying Party’s right to control the defence thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party; provided that, if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defences available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party, or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction for which the Indemnified Party determines counsel is required. If the Indemnifying Party elects not to compromise or defend such Third-Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement or fails to diligently prosecute the defence of such Third-Party Claim, the Indemnified Party may, subject to Section 7.05(b), pay, compromise, defend such Third-Party Claim and seek indemnification for any and all Losses based upon, arising from or relating to such Third-Party Claim. Vendor and Purchaser shall cooperate with each other in all reasonable respects in connection with the defence of any Third-Party Claim, including making available (subject to the provisions of Section 5.06) records relating to such Third-Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defence of such Third-Party Claim.

		(b)
	Settlement of Third-Party Claims. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third-Party Claim without the prior written consent of the Indemnified Party, except as provided in this Section 7.05(b). If a firm offer is made to settle a Third-Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Third-Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect 

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45

to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within 10 days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third-Party Claim and, in such event, the maximum liability of the Indemnifying Party as to such Third-Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume the defence of such Third-Party Claim, the Indemnifying Party may settle the Third-Party Claim upon the terms set forth in such firm offer to settle such Third-Party Claim. If the Indemnified Party has assumed the defence under Section 7.05(a), it shall not agree to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).
		(c)
	Direct Claims. Any Action by an Indemnified Party on account of a Loss which does not result from a Third-Party Claim (each, a “Direct Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 days after the Indemnified Party becomes aware of such Direct Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defences by reason of such failure. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim, and the Indemnified Party shall assist the Indemnifying Party’s investigation by giving such information and assistance (including access to the Target Corporations’ premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors may reasonably request. If the Indemnifying Party does not so respond within such 30 day period, the Indemnifying Party shall be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

Section 7.06Payments. Once a Loss is agreed to by the Indemnifying Party or finally adjudicated to be payable under this ARTICLE VII, the Indemnifying Party shall satisfy its obligations within 15 Business Days of such final, non-appealable adjudication by wire transfer of immediately available funds. The parties agree that, if the Indemnifying Party does not make full payment of any such obligations within such 15-Business Day period, any amount payable shall accrue interest from and including the date of agreement of the Indemnifying Party or final, non-appealable adjudication to but excluding the date such payment has been made at a rate per annum equal to 5%. Such interest shall be calculated daily on the basis of a 365 day year and the actual number of days elapsed, without compounding.
Section 7.07Tax Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated by the parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.
Section 7.08Effect of Investigation. The representations, warranties and covenants of the Indemnifying Party, and the Indemnified Party’s right to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation made by or on behalf of the Indemnified Party (including by any of its Representatives) or by reason of the fact 
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46

that the Indemnified Party or any of its Representatives knew or should have known that any such representation or warranty is, was or might be inaccurate or by reason of the Indemnified Party’s waiver of any condition set forth in Section 6.02 or Section 6.03, as the case may be.
Section 7.09Exclusive Remedies. Subject to Section 5.07 and Section 9.11, the parties acknowledge and agree that their sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud, criminal activity or wilful misconduct on the part of a party hereto in connection with the transactions contemplated by this Agreement) for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be under the indemnification provisions set forth in this ARTICLE VII. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates and each of their respective Representatives arising under or based upon any Law, except under the indemnification provisions set forth in this ARTICLE VII. Nothing in this Section 7.09 shall limit any Person’s right to seek and obtain any equitable relief to which any Person shall be entitled or to seek any remedy on account of any party’s fraudulent, criminal or wilful misconduct.
(a)
ARTICLE VIII
Miscellaneous
Section 8.01Expenses. Except as otherwise expressly provided herein, all costs and expenses, including fees, disbursements and charges of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.
Section 8.02Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 9.02):
​
	​

	​

	​

	If to Vendor:
	Alexandre Mongeon
129 avenue Bellevue
Laval, Québec
H7C 1T2 Canada
​

	​
	Facsimile:
	​

	​
	Email:
	am@v-mti.com

	​
	​
	​

	​
	Simon Oliel
6682 avenue MacDonald
Hampstead, Québec

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47

	​
	H3X 2X4 Canada

	​
	Facsimile:
	​

	​
	Email:
	admin@eboatsrental.com 

	​
	​
	​

	​
	Stratégies P.P. Inc.
9 rue Alfred-Laliberté
Notre-Dame-de-l’Île-Perrot, Québec
J7V 7P2 Canada

	​
	Facsimile:
	​

	​
	Email:
	philippe.pellerin@me.com 

	​
	Attention:
	President

	​
	​
	​

	If to Purchaser:
	Vision Marine Technologies Inc.
730 boulevard du Curé-Boivin
Boisbriand, Québec
J7G 2A7 Canada

	​
	Facsimile:
	​

	​
	Email:
	kulwant.sandher@gmail.com

	​
	Attention:
	Chief Financial Officer

​
Section 8.03Interpretation. For purposes of this Agreement: (a) the words “include”, “includes” and “including” shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein”, “hereof”, “hereby”, “hereto” and “hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.
Section 8.04Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.
Section 8.05Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.
Section 8.06Entire Agreement. This Agreement and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein and supersedes all prior and contemporaneous 
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48

understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those in the other Transaction Documents, the Exhibits and Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.
Section 8.07Joint and Several Obligations. Unless the context otherwise requires, all obligations of the Vendors under this Agreement are joint and several.
Section 8.08Successors and Assigns. This Agreement shall be binding upon and shall enure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed; provided that, before the Closing Date, Purchaser may, without the prior written consent of Vendor, assign all or any portion of its rights under this Agreement to one or more of its direct or indirect wholly owned subsidiaries. No assignment shall relieve the assigning party of any of its obligations hereunder.
Section 8.09No Third-Party Beneficiaries. Except as provided in ARTICLE VII, this Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under, or by reason of, this Agreement.
Section 8.10Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.
Section 8.11Governing Law; Forum Selection; Choice of Language
		(a)
	This Agreement shall be governed by and construed in accordance with the Laws of the province of Québec and the federal Laws of Canada applicable therein.

		(b)
	Any Action arising out of or based upon this Agreement, the other Transaction Documents or the transactions contemplated hereby or thereby may be brought in the courts of the province of Québec, and each party irrevocably submits and agrees to attorn to the [non-]exclusive jurisdiction of that court in any such Action. The parties irrevocably and unconditionally waive any objection to the venue of any Action or proceeding in that court and irrevocably waive and agree not to plead or claim in that court that such Action has been brought in an inconvenient forum.

		(c)
	The parties confirm that it is their express wish that this Agreement, as well as any other documents relating to this Agreement, including notices, schedules and authorizations, have been and shall be drawn up in the English language only. Les parties aux présentes confirment leur volonté expresse que cette convention, de même que tous les documents s’y rattachant, y compris tous avis, annexes et autorisations s’y rattachant, soient rédigés en langue anglaise seulement.

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49

Section 8.12Specific Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.
Section 8.13Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
[SIGNATURE PAGE FOLLOWS]
​
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50

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.
​
VENDOR:
	​
	​
	​

	​
	​
	​

	​
	​
	ALEXANDRE MONGEON

	​
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	​

	​
	​
	​

	​
	​
	​

	​
	​
	SIMON OLIEL

​
	​
	​
	​
	​

	​
	​
	STRATÉGIES P.P. INC.

	​
	​
	​

	​
	​
	​

	​
	​
	​

	​
	​
	Per:
	​

	​
	​
	​
	Name: Philippe Pellerin
Title: President

	​
	​
	I have the authority to bind the corporation.

​
PURCHASER:
	​
	​
	​
	​

	​
	​
	VISION MARINE TECHNOLOGIES INC.

	​
	​
	​

	​
	​
	​

	​
	​
	​

	​
	​
	Per:
	​

	​
	​
	​
	Name: Kulwant Sandher
Title: Chief Financial Officer

	​
	​
	I have the authority to bind the corporation.

​
CORPORATION:
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51

​
	​
	​
	​
	​

	​
	​
	7858078 CANADA INC.

	​
	​
	​

	​
	​
	​

	​
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	Per:
	​

	​
	​
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	Name: Philippe Pellerin
Title: President

	​
	​
	I have the authority to bind the corporation.

​

52EXHIBIT 10.9
​
MANUFACTURING AND SUPPLY AGREEMENT
​
between
​
LINAMAR CORPORATION
​
and
​
VISION MARINE TECHNOLOGIES INC.
​
dated as of
​
21 October 2021
​
​

1

TABLE OF CONTENTS
	​

	​

	ARTICLE I Definitions
	5

	ARTICLE II Agreement to Manufacture and Sell Goods
	10

	Section 2.01 Manufacture, Purchase and Sale
	10

	Section 2.02 Order of Precedence.
	10

	Section 2.03 Right to Manufacture and Sell Competitive Goods
	10

	Section 2.04 Most-Favored Seller.
	11

	Section 2.05 Addendums and Schedules
	11

	ARTICLE III Order Procedure
	11

	Section 3.01 Forecasts.
	11

	Section 3.02 Purchase Orders.
	11

	Section 3.03 Acceptance, Rejection and Cancellation of Purchase Orders
	11

	ARTICLE IV Shipment, Delivery and Acceptance
	12

	Section 4.01 Shipment.
	12

	Section 4.02 Packaging and Labelling
	12

	Section 4.03 Delivery.
	12

	Section 4.04 Late Delivery.
	12

	Section 4.05 Transfer of Title and Risk of Loss
	13

	Section 4.06 Inspection and Acceptance.
	13

	Section 4.07 Limited Right of Return
	13

	ARTICLE V Price and Payment
	14

	Section 5.01 Price.
	14

	Section 5.02 Shipping Charges, Insurance and Taxes.
	14

	Section 5.03 Payment Terms.
	14

	Section 5.04 Buyer's Unsatisfactory Credit Status.
	15

	Section 5.05 Invoice Disputes.
	15

	Section 5.06 Late Payments
	16

	Section 5.07 No Set-off Right.
	16

	Section 5.08 Purchase-Money Security Interest
	16

	ARTICLE VI Certain Obligations of Buyer
	17

	Section 6.01 Certain Prohibited Acts
	17

	Section 6.02 Restrictions on Sales or Delivery Outside the Territory
	17

	Section 6.03 Government Contracts.
	17

	Section 6.04 Credit Risk on Resale of the Goods to Customers
	17

	Section 6.05 Buyer's Financial Condition.
	18

​

2

	Section 6.06 General Compliance with Laws
	18

	ARTICLE VII Representations and Warranties
	19

	Section 7.01 Buyer's Representations and Warranties.
	19

	Section 7.02 Seller's Representations and Warranties.
	20

	Section 7.03 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES; NON-RELIANCE
	21

	ARTICLE VIII Product Warranty and Recall
	21

	Section 8.01 Limited Product Warranty.
	21

	Section 8.02 Product Warranty Limitations.
	21

	Section 8.03 Buyer's Exclusive Remedy for Defective Goods
	22

	Section 8.04 Third-Party Products
	22

	Section 8.05 Product Withdrawal
	23

	ARTICLE IX Intellectual Property
	23

	Section 9.01 Definitions
	23

	Section 9.02 License for Use Buyer
	24

	Section 9.03 License for Use Seller
	24

	Section 9.04 Joint Use of IP
	24

	Section 9.05 Prohibited Acts.
	24

	ARTICLE X Confidentiality
	25

	Section 10.01 Scope of Confidential Information.
	25

	Section 10.02 Protection of Confidential Information
	26

	ARTICLE XI Tooling
	26

	ARTICLE XII Inspection and Audit Rights
	28

	Section 12.01 Seller's Right of Access.
	28

	Section 12.02 Seller's Records
	28

	ARTICLE XIII Insurance
	28

	Section 13.01 Insurance
	28

	Section 13.02 Insurance Contract Requirements
	29

	Section 13.03 Insurance Certificates.
	29

	ARTICLE XIV Imdemnification
	29

	Section 14.01 Imdemnification
	29

	Section 14.02 Exceptions and Limitations on Indemnification
	30

	Section 14.03 Seller Intellectual Property Indemnification
	30

	Section 14.04 Exceptions to Seller's Intellectual Property Indemnification
	30

	Section 14.05 Exclusive Remedy.
	31

​

3

	ARTICLE XV NO LIABILITY FOR CONSEQUENTIAL OR INDIRECT DAMAGES
	31

	Section 15.01 NO LIABILITY FOR CONSEQUENTIAL OR INDIRECT DAMAGES
	31

	Section 15.02 MAXIMUM LIABILITY FOR DAMAGES
	31

	Section 15.03 ASSUMPTION OF RISK
	31

	Section 15.04 EXCEPTIONS TO LIMITATIONS
	32

	ARTICLE XVI Term; Termination
	32

	Section 16.01 Initial Term.
	32

	Section 16.02 Renewal Term
	32

	Section 16.03 Seller's Right to Terminate the Agreement
	32

	Section 16.04 Buyer's Right to Terminate.
	34

	Section 16.05 Effect of Expiration or Termination.
	35

	Section 16.06 Transition of Supply.
	35

	ARTICLE XVII Miscellaneous
	36

	Section 17.01 Further Assurances.
	36

	Section 17.02 Relationship of the Parties.
	36

	Section 17.03 Entire Agreement
	36

	Section 17.04 Survival
	36

	Section 17.05 Notices
	37

	Section 17.06 Interpretation.
	38

	Section 17.07 Headings.
	38

	Section 17.08 Severability
	38

	Section 17.09 Amendment and Modification
	38

	Section 17.10 Waiver.
	38

	Section 17.11 Cumulative Remedies
	39

	Section 17.12 Equitable Remedies.
	39

	Section 17.13 Assignment.
	39

	Section 17.14 Successors and Assigns.
	39

	Section 17.15 No Third-party Beneficiaries
	39

	Section 17.16 Dispute Resolution.
	39

	Section 17.17 Governing Law.
	40

	Section 17.18 Choice of Forum
	40

	Section 17.19 Waiver of Jury Trial
	40

	Section 17.20 Counterparts
	40

	Section 17.21 Force Majeure
	41

	Section 17.22 No Public Announcements or Trademark Use.
	41

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4

	Section 17.23 Language.
	41

	Section 17.24 Capacity.
	41

	Section 17.25 Subcontractors.
	41

	Section 17.26 Product Marketing.
	41

	Section 17.27 US C-TPAT (US Customs Services Trade Partnership Against Terrorism).
	41

​
​

5

​
Manufacturing and Supply Agreement
This Manufacturing and Supply Agreement, dated as of 21 October 2021 (this "Master Agreement"), is entered into between Linamar Corporation, a Ontario registered corporation ("Seller"), and Vision Marine Technologies Inc., a corporation organized under the laws of Quebec ("Buyer", and together with Seller, the "Parties", and each, a "Party").
Recitals
WHEREAS Seller possesses substantial experience and expertise in the design, sales, testing, prototyping, and global manufacturing of highly engineered products, including precision metallic components, modules, and systems for propulsion systems for global vehicle, industrial and marine markets. Seller has the expertise to apply those skills and act as a full service contract manufacturer to Buyer for the Goods (as defined below);
WHEREAS, Buyer wishes to purchase certain Goods (as defined below) exclusively from Seller; and
WHEREAS, Seller desires to manufacture and supply the Goods to Buyer.
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE I
Definitions
Capitalized terms have the meanings set forth or referred to in this Article I. Any capitalized terms not defined in this Article I shall have the definition supplied in the text of this Master Agreement.
"Action" means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, investigative, regulatory or other, whether at law, in equity or otherwise.
"Affiliate" of a Person means any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person.
"Agreement" means this Master Agreement, any Basic Purchase Order Terms, and all schedules, exhibits, attachments or appendices specifically referenced herein or therein.
"Alternative Term" has the meaning set forth in Section 2.04.
"Basic Purchase Order Terms" means any one or more of the following terms specified by Buyer in a Purchase Order: (a) the Goods to be purchased, including make/model number/UPC/SKU/part number; (b) the quantity of each of the Goods ordered; (c) the 
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Requested Delivery Date; (d) the unit Price for each of the Goods to be purchased; (e) the billing address; and (f) the Delivery Location.
"Business Day" means any day other than a Saturday, Sunday or any other day on which commercial banks located in the province of Ontario are authorized or required by Law to be closed for business.
"Buyer Contracts" means all contracts or agreements to which Buyer is a party or by which any of its material assets are bound.
"Claim" means any Action brought against a Person entitled to indemnification under ARTICLE XIV.
"Confidential Information" has the meaning set forth in Section 10.01.
"Control" (and with correlative meanings, the terms "Controlled by" and "under common Control with") means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of another Person, whether through the ownership of voting securities, by contract, or otherwise.
"Defective" means not conforming to the Product Warranty under Section 8.01.
"Defective Goods" means goods shipped by Seller to Buyer under this Agreement that are Defective.
"Delivery Location" means the street address within the Territory for delivery of the Goods specified in the applicable Purchase Order.
"Disclosing Party" has the meaning set forth in Section 10.01. 
"Dispute" has the meaning set forth in Section 17.16. 
"Dispute Notice" has the meaning set forth in Section 17.16.
"EDI" means any electronic data interchange technology agreed on by the parties for use under this Agreement.
"Effective Date" means the date first set forth above.
"Force Majeure Event" has the meaning set forth in Section 17.21.
"Forecast" means, with respect to any three month period, a good faith projection or estimate of Buyer's requirements for Goods during the subsequent twelve month period, which approximates, as nearly as possible based on information available at the time to Buyer, the quantity of Goods that Buyer may order for each quarter.
"Goods" means the goods identified in Schedule 1 and described in the Specifications attached as Schedule 2.
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"Governmental Authority" means any federal, provincial, territorial, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non­governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.
"Governmental Order" means any order, writ, judgment, injunction, decree, stipulation, award or determination entered by or with any Governmental Authority.
"HST" means harmonized sales tax, or goods and services tax, imposed under the HST Act (or any provincial or territorial legislation imposing sales tax, harmonized sales tax or goods and services tax).
"HST Act" means Part IX of the Excise Tax Act (Canada).
"Indemnified Parties" has the meaning set forth in Section 14.01.
"Indemnifying Party" has the meaning set forth in Section 14.01.
"Individual Transaction" means an individual transaction under this Agreement that is described in a Purchase Order that has been accepted by Seller under Section 3.03, and incorporates by reference the terms and conditions of this Agreement.
"Initial Term" has the meaning set forth in Section 16.01. 
"Inspection Period" has the meaning set forth in Section 4.06.
"Intellectual Property Rights" means all industrial and other intellectual property rights comprising or relating to: (a) Patents; (b) Trademarks; (c) internet domain names, whether or not Trademarks, registered by any authorized private registrar or Governmental Authority, web addresses, web pages, website and URLs; (d) works of authorship, expressions, designs and industrial design registrations, whether or not copyrightable, including copyrights and copyrightable works, software and firmware, application programming interfaces, architecture, files, records, schematics, data, data files, and databases and other specifications and documentation; (e) Trade Secrets; (f) integrated circuit topologies, semiconductor chips, mask works and the like; and (g) all industrial and other intellectual property rights, and all rights, interests and protections that are associated with, equivalent or similar to, or required for the exercise of, any of the foregoing, however arising, in each case whether registered or unregistered and including all registrations and applications for, and renewals or extensions of, such rights or forms of protection under the Laws of any jurisdiction in any part of the world.
"Law" means any statute, ordinance, regulation, rule, code, constitution, treaty, common law, Governmental Order or other requirement or rule of law of any Governmental Authority.
"Losses" has the meaning set forth in Section 14.01.
"Non-Conforming Goods" means any goods received by Buyer from Seller that: (a) do not conform to the part number listed in the applicable Purchase Order; (b) do not fully conform to
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 the Specifications; or (c) on inspection, are otherwise reasonably determined by the Buyer to be Defective. Where the context requires, Non-Conforming Goods are deemed to be Goods for purposes of this Agreement.
"Notice" has the meaning set forth in Section 17.05.
"Patents" means all patents (including all reissues, divisionals, provisionals, continuations and continuations-in-part, re-examinations, renewals, substitutions and extensions thereof), patent applications, and other patent rights and any other Governmental Authority-issued indicia of invention ownership (including inventor's certificates and patent utility models).
"Payment Failure" has the meaning set forth in Section 16.03(a).
"Permits" means permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from any Governmental Authority.
"Person" means any individual, partnership, corporation, trust, unlimited liability company, unincorporated organization, association, Governmental Authority or any other entity.
"Personnel" means any agents, employees, contractors or subcontractors engaged or appointed by a Party.
"Price" has the meaning set forth in Section 5.01.
"Promised Delivery Date" means the actual delivery date promised by Seller for Goods ordered hereunder that is set forth in Schedule 1 or in a Purchase Order, in which case the promised delivery date must be a Business Day no more than the applicable lead time for the Goods.
"Product Warranty" has the meaning set forth in Section 8.01.
"Purchase Order" means a purchase order issued by Buyer to Seller hereunder, which may, among other things, specify items such as: (a) the Goods to be purchased, including make/model number/UPC/SKU/part number; (b) the quantity of each of the Goods ordered; (c) the Requested Delivery Date; (d) the billing address; and (e) the Delivery Location; in each case, including all terms and conditions attached to, or incorporated into, such purchase order, and any Release issued by Buyer to Seller under a Purchase Order. For the avoidance of doubt, any references to Purchase Orders hereunder also include any applicable Releases.
"Receiving Party" has the meaning set forth in Section 10.01.
"Reimbursement Payment" has the meaning set forth in Section 16.04.
"Release" means a document issued by Buyer to Seller under a Purchase Order that identifies (to the extent not specified in the original Purchase Order) the quantities of Goods constituting Buyer's requirements or otherwise to be included in a particular order, the Delivery Locations and the Requested Delivery Dates for such Goods.
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"Renewal Term" has the meaning set forth in Section 16.02.
"Representatives" means a Party's Affiliates and each of their respective Personnel, officers, directors, partners, shareholders, agents, lawyers, third-party advisors, successors and permitted assigns.
“Rolling Forecast” means the production and sales forecast for the subsequent twelve months, including a quarterly schedule, for all Goods to be produced by Seller during the following twelve month period.
"Seller Contracts" means all contracts or agreements to which Seller is a party or by which any of its material assets are bound.
"Seller Parties" means Seller, its Affiliates, customers (other than Buyer), subcontractors and successors and assigns, and each of their respective Representatives.
"Seller's Intellectual Property" means all Intellectual Property Rights owned by or licensed to Seller
"Specifications" means the physical characteristics, capabilities, features intended uses and other attributes for the Goods, as set out in Schedule 2.
"Taxes" means any commodity tax, including sales, use, excise, value-added, HST, consumption or other similar tax, including penalties or interest, imposed, levied or assessed by any Governmental Authority.
"Term" has the meaning set forth in Section 16.01.
"Territory" means Canada.
"Third-Party Product" has the meaning set forth in Section 8.04.
"Tooling" means, collectively, all tooling, dies, test and assembly fixtures, gauges, jigs, patterns, casting patterns, cavities, molds, and documentation (including engineering specifications and test reports) used by Seller in connection with its manufacture and sale of the Goods, together with any accessions, attachments, parts, accessories, substitutions, replacements and appurtenances thereto.
"Trademarks" means all rights in and to Canadian and foreign trademarks, trade dress, trade and business names, brand names, logos, design rights, corporate names and domain names and other similar designations of source, sponsorship, association or origin, together with the goodwill symbolized by any of the foregoing, in each case whether registered or unregistered and including all registrations and applications for, and renewals and extensions of, such rights and all similar or equivalent rights or forms of protection in any part of the world.
"Trade Secrets" means all inventions, discoveries, trade secrets, business and technical information and know-how, databases, data collections, patent disclosures and other confidential and proprietary information and all rights therein.
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"Warranty Period" has the meaning set forth in Section 8.01.
ARTICLE II
Agreement to Manufacture and Sell Goods
Section 2.01 Manufacture, Purchase and Sale.
		(a)
	Subject to the terms and conditions of this Agreement, during the Term, Buyer shall purchase Goods exclusively from Seller, and Seller shall manufacture and sell to Buyer Buyer’s requirements for the Goods as set forth in Buyer’s Purchase Orders, at the Prices.

		(b)
	Except as set out in this Agreement, Seller shall furnish all labor, materials, equipment and facilities necessary for the manufacture of Goods under this Agreement.

Section 2.02 Order of Precedence. The express terms and conditions contained in this Agreement and the Basic Purchase Order Terms of any Purchase Orders issued hereunder exclusively govern and control each of the Parties' respective rights and obligations regarding the manufacture, purchase and sale of the Goods, and the Parties' agreement is expressly limited to such terms and conditions. Notwithstanding the foregoing, if any terms and conditions contained in a Purchase Order conflict with any terms and conditions contained in this Master Agreement, the order of precedence is:
		(a)
	the Basic Purchase Order Terms of the relevant Purchase Order; and

		(b)
	this Master Agreement.

Without limiting anything contained in this Section 2.02 , any additional, contrary or different terms contained in any Purchase Order or any other request or communication by Buyer to Seller pertaining to the sale of Goods hereunder, or any of Seller's invoices or other communications, and any other attempt to modify, supersede, supplement or otherwise alter this Agreement, are deemed rejected by Seller and will not modify this Agreement or be binding on the Parties unless such terms have been fully approved in a signed writing by authorized Representatives of both Parties.
Section 2.03 Right to Manufacture and Sell Competitive Goods. This Agreement does not limit Seller's right to manufacture or sell, or preclude Seller from manufacturing or selling, to any Person, or entering into any agreement with any other Person related to the manufacture or sale of, other goods or products that are similar to or competitive with the Goods. Notwithstanding these Seller’s rights, Seller agrees to the following:
		(a)
	all Goods to be produced according to this Agreement will be "build to print" and all designs are currently patented and owned by Buyer;

		(b)
	Seller shall not manufacture or sell the Goods (per Schedule 1 and Schedule 2) to anyone other than Buyer (including components that may be used for Aftermarket/Repair/Service/Replacement parts purposes); and

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		(c)
	Seller is free to manufacture similar goods or products that do not infringe on Buyer’s Intellectual Property Rights or proprietary rights related to the Goods being produced under this Agreement. Seller shall refrain from entering into manufacturing partnerships for similar goods or products that require the use of any newly developed Seller’s Intellectual Property Rights relating to process for a period of twelve months from the date of execution of this Agreement. Thereafter Seller shall be free to commercialize any newly developed Seller’s Intellectual Property Rights relating to process developed pursuant to this Agreement.

Section 2.04 Most-Favored Seller. INTENTIONALLY DELETED
Section 2.05 Addendums and Schedules. The parties acknowledge that they are executing this Agreement prior to finalizing the Specifications and pricing to be set forth in Schedule 1 and Schedule 2. The parties will negotiate in good faith to finalize and sign Schedule and Schedule 2 following execution of this Agreement.
ARTICLE III
Order Procedure
Section 3.01 Forecasts. Buyer shall provide within six (6) months prior to Start of Production (SOP) to Seller a Forecast for the twelve (12) month period beginning on the Start of Production (SOP). No later than ten days before the first day of each subsequent calendar quarter, Buyer shall deliver to Seller a twelve (12) month Rolling Forecast for its annual and quarterly volume requirements. Forecasts are for informational purposes only and do not create any binding obligations on behalf of either Party; provided, however, that Seller shall not be required to manufacture and sell to Buyer any quantity of Goods that is unreasonably disproportionate to any Rolling Forecast for the period covered by such Rolling Forecast.
Section 3.02 Purchase Orders. Buyer shall communicate its requirements for Goods to Seller by issuing Purchase Orders containing applicable Basic Purchase Order Terms that are consistent with the terms of this Agreement to Seller in written or electronic form via email, EDI, or Canadian mail. By issuing a Purchase Order to Seller, Buyer places an order to purchase Goods under the terms and conditions of this Agreement and the Basic Purchase Order Terms contained in such Purchase Order, and on no other terms. For the avoidance of doubt, any variations made to the terms and conditions of this Agreement by Buyer in any Purchase Order are void and have no effect unless agreed in a signed writing by Seller. From time-to-time, Buyer may also issue Releases to Seller.
Section 3.03 Acceptance, Rejection and Cancellation of Purchase Orders. If any Purchase Order issued by Buyer fails to conform to Section 3.02 or otherwise fails to comply with the requirements of this Agreement, Seller shall notify Buyer of its objection within five business days.  All purchase orders shall be accepted in writing or by some other commercially reasonable form of positive indication of acceptance (e.g. an acceptance of an EDI posted order). Any order that the Seller fails to accept within five business days will be rejected. A purchase order also is accepted by commencing performance or delivering the Goods to Buyer, whichever occurs first. Notwithstanding any confirmation or acceptance, any variations made to the terms and 
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conditions of this Agreement by Buyer in any Purchase Order are void and have no effect unless agreed in a signed writing by Seller.
Seller may reject a Purchase Order or cancel a previously accepted Purchase Order, which it may do without liability or penalty, and without constituting a waiver of any of Seller's rights or remedies under this Agreement or any Purchase Order, by providing written notice to Buyer specifying the applicable date of rejection or cancellation:
		(a)
	if any one or more of the events described in Section 16.03 has occurred;

		(b)
	pursuant to Seller's rights under Section 5.04(b) or Section 5.04(c); or

		(c)
	pursuant to Seller's rights under the last sentence of Section 5.06.

ARTICLE IV
Shipment, Delivery and Acceptance
Section 4.01 Shipment. Unless otherwise expressly agreed by the Parties in writing, Seller shall select the method of shipment of and the carrier for the Goods, subject to approval from Buyer. Seller may, in its sole discretion, without liability or penalty, make partial shipments of Goods to Buyer. Each shipment will constitute a separate sale and Buyer shall pay for the Goods shipped, in accordance with the payment terms specified in Section 5.03, whether such shipment is in whole or partial fulfilment of a Purchase Order.
Section 4.02 Packaging and Labelling. Seller shall properly pack, mark and ship Goods and provide Buyer with shipment documentation showing the Purchase Order number, Seller's identification number for the subject Goods, the quantity of pieces in shipment, the number of cartons or containers in shipment, Seller's name, the bill of lading number and the country of origin.
Section 4.03 Delivery. Unless otherwise expressly agreed by the Parties in writing, Seller shall deliver the Goods to the Delivery Location, using Seller's standard methods for packaging and shipping such Goods. All Prices are ex-works Seller facility.
Section 4.04 Late Delivery. Seller shall provide Buyer with a Promised Delivery Date within five (5) business days following receipt of each new Purchase Order.  Seller shall use commercially reasonable efforts to deliver all Goods on or before the Promised Delivery Date. If Seller has delayed shipment of all or any Goods for more than five Business Days after the Promised Delivery Date and if such delay is not due to any action or inaction of Buyer or otherwise excused in accordance with the terms and conditions of this Agreement, Seller shall exercise all available methods for expediting delivery (including expedited procurement and shipping options) at Seller’s cost.  Buyer may, as its sole remedy therefore, cancel the portion of the related Purchase Order covering the delayed Goods by giving Seller written Notice within ten (10) Business Days of the Promised Delivery Date. Subject to Buyer's rights under this Section 4.04, no delay in the shipment or delivery of any Good relieves Buyer of its obligations under this Agreement, including accepting delivery of any remaining installment or other orders of Goods.
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Section 4.05 Transfer of Title and Risk of Loss.
		(a)
	Title to Goods shipped under any Individual Transaction passes to Buyer upon delivery of such Goods to Buyer.

		(b)
	Risk of loss to Goods shipped under any Individual Transaction passes to Buyer upon Seller's tender of such units to the carrier at Seller’s facility.

Section 4.06 Inspection and Acceptance. Buyer shall inspect Goods received under this Agreement within twenty (20) days of receipt of such Goods ("Inspection Period") and either accept or, only if any such Goods are Non-Conforming Goods, reject such Goods. Buyer will be deemed to have accepted Goods unless it provides Seller with written Notice of any Non-Conforming Goods within twenty (20) days following the Inspection Period, stating with specificity all defects and non-conformities, and furnishing such other written evidence or other documentation as may be reasonably required by Seller (including the subject Goods, or a representative sample thereof, which Buyer contends are Non-Conforming Goods). Goods not rejected within thirty (30) days shall be deemed to have been accepted by Buyer for purposes of initial delivered product quality. Non-Conforming Goods may also later be rejected after being installed by Buyer’s customers on their engine production lines, such rejects being categorized as Zero Mile Product Defects (“ZMPD’s”).  Buyer’s recourse for submitting written notice to Seller regarding ZMPD’s will follow the Inspection Period process defined in this Section 4.06.  Buyer will retain full rights to submit future Defective Goods claims to Seller throughout the warranty period as defined in Section VIII – Product Warranty and Recall. If Buyer timely notifies Seller of any Non-Conforming, ZMPD’s, or Defective Goods throughout the entire warranty period for such Goods, Seller shall determine, in its reasonable discretion, whether the Goods are Non-Conforming, ZMPD’s, or Defective Goods. If Seller determines that such Goods are Non-Conforming, ZMPD’s, or Defective Goods, Seller shall, in its sole discretion, either:
		(a)
	replace such Non-Conforming, ZMPD’s, or Defective Goods with conforming Goods; or

		(b)
	refund to Buyer such amount paid by Buyer to Seller for such Non-Conforming, ZMPD’s, or Defective Goods returned by Buyer to Seller.

Buyer shall ship, at Seller's expense and risk of loss, all Non-Conforming, ZMPD’s, or Defective Goods to Seller's facility or to such other location as Seller may instruct Buyer in writing. If Seller exercises its option to replace Non-Conforming, ZMPD’s, or Defective Goods, Seller shall ship to the Delivery Location, at Seller's expense and risk of loss, the replacement Goods.
THE REMEDIES SET FORTH IN THIS Section 4.06 ARE BUYER'S EXCLUSIVE REMEDY FOR THE DELIVERY OF NON-CONFORMING, ZMPD’s or DEFECTIVE GOODS, SUBJECT TO BUYER'S RIGHTS UNDER Section 8.03 WITH RESPECT TO ANY SUCH GOODS FOR WHICH BUYER HAS ACCEPTED DELIVERY UNDER THIS Section 4.06.
Section 4.07 Limited Right of Return. Except as provided under Section 4.06, Section 8.03 and Section 8.05, Buyer has no right to return Goods shipped to Buyer under this Agreement.
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ARTICLE V
Price and Payment
Section 5.01 Price. Buyer shall purchase the Goods from Seller at the prices set forth in Schedule 1 attached hereto (the "Prices"). All Prices include, and Seller is solely responsible for, all costs and expenses relating to packing, crating, boxing, and loading of the Goods. Charges relating to unloading, shipping or transit insurance and any customs, tariffs or duties levied on the sale or important of the Goods shall be as determined by the IncoTerms identified in this Agreement.
Section 5.02 Shipping Charges, Insurance and Taxes.
		(a)
	Except in cases of a breach by Seller, as otherwise provided in this Agreement or as otherwise agreed to by the Parties, Buyer shall pay for, and shall hold Seller harmless from, all shipping charges and insurance costs.

		(b)
	The Prices are exclusive of all applicable Taxes (including HST and provincial sales tax). Each Party will be responsible for the payment of and will pay any applicable taxes, duties and levies levied on that Party from time to time in relation to this Agreement.

		(c)
	Seller will timely remit all applicable sales, use, value-added, services, consumption and HST charged to the appropriate Governmental Authorities which it is required to collect from Buyer in respect of any Tax referred to in Section 5.02(b).

		(d)
	Seller represents, warrants and covenants to the Buyer that:

		(i)
	Seller will charge, collect and timely remit all Taxes that it is required to collect and remit under applicable Law;

		(ii)
	Seller is registered for HST purposes and for provincial sales tax purposes and will continue to be registered for HST and provincial sales tax purposes;

		(iii)
	if any other provincial sales tax is applicable to the Goods, Seller is and will continue to be registered as a vendor for the purposes of such provincial sales tax; and

Section 5.03 Payment Terms. Seller shall periodically issue invoices to Buyer for all Goods ordered. Invoices shall be issued at the time of shipment according to when the Goods depart the Seller’s facility.  Each invoice will set forth in reasonable detail the amounts payable by Buyer under this Agreement. Buyer shall pay all invoiced amounts due to Seller within forty-five (45) days of the date of Buyer's receipt of Seller's invoice.
Buyer shall make all payments by cheque, wire transfer or electronic funds transfer in accordance with the instructions provided by Seller at the time of acceptance of a Purchase Order.
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The Parties will discuss and agree in writing regarding the applicable currency for payments in connection with finalizing the location for manufacturing the Goods.
Section 5.04 Buyer's Unsatisfactory Credit Status. If, at any time, Seller has reasonable grounds for concern that Buyer's financial condition or creditworthiness is inadequate or unsatisfactory, and Buyer fails to provide adequate assurance of performance following a reasonable request by Seller, then in addition to Seller's other right under this Agreement, at law or in equity, Seller may, without liability or penalty, take one or more of the following actions:
		(a)
	On twenty days' prior written Notice, modify the payment terms specified in Section 5.03 for outstanding and future purchases, including requiring Buyer to pay for Goods on a cash in advance or cash on delivery basis;

		(b)
	reject any Purchase Orders received from Buyer;

		(c)
	cancel any previously accepted Purchase Orders;

		(d)
	delay or withhold any further shipment of Goods to Buyer;

		(e)
	stop delivery of any Goods in transit and cause such Goods in transit to be returned to Seller;

		(f)
	on ninety days' prior written Notice, terminate this Agreement; or

		(g)
	accelerate the due date of all amounts owing by Buyer to Seller.

No action taken by Seller under this Section 5.04 (nor any failure of Seller to act under this Section 5.04) constitutes a waiver by Seller of any of its rights and remedies under this Agreement, including its right to enforce Buyer's obligation to make payments as required hereunder.
Section 5.05 Invoice Disputes. Buyer shall notify Seller in writing of any dispute with any invoice (along with substantiating documentation and a reasonably detailed description of the dispute) within forty-five (45) days from the date of Buyer’s receipt of such invoice. Buyer will be deemed to have accepted all invoices for which Seller does not receive timely notification of dispute and shall pay all undisputed amounts due under such invoices within the period set forth in Section 5.03. The Parties shall seek to resolve any such disputes expeditiously and in good faith in accordance with the dispute resolution provisions set forth in Section 17.16. Notwithstanding anything to the contrary, Buyer shall continue performing its obligations under this Agreement during any such dispute, including Buyer's obligation to pay all due and undisputed invoice amounts in accordance with the terms of this Agreement.
Section 5.06 Late Payments. Except for invoiced payments that Buyer has successfully disputed, Buyer shall pay interest on all late payments (whether during the Term or after the expiration or earlier termination of the Term), calculated daily and compounded monthly, at the lesser of the rate of 1.0 % per month or the highest rate permissible under applicable Law. Buyer shall also reimburse Seller for all reasonable costs incurred by Seller in collecting any late payments, including legal fees and court costs. In addition to all other remedies available under this Agreement or at Law (which Seller does not waive by the exercise of any rights
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 under this Agreement), if Buyer fails to pay any undisputed amounts when due under this Agreement, and payment is not made within 5 business days after Seller gives notice of such failure Seller may:
		(a)
	suspend the delivery of any Goods;

		(b)
	reject Buyer's Purchase Orders or cancel accepted Purchase Orders under the terms of Section 3.03; or

		(c)
	terminate this Agreement under the terms of Section 16.03(a).

Section 5.07 No Set-off Right. Buyer shall not, unless agreed to in writing by the Seller, and acknowledges that it will have no right, under this Agreement, any Purchase Order, any other agreement, document or Law to, withhold, offset, recoup or debit any amounts owed (or to become due and owing) to Seller or any of its Affiliates, whether under this Agreement or otherwise, against any other amount owed (or to become due and owing) to it by Seller or Seller's Affiliates, whether relating to Seller's or its Affiliates' breach or non-performance of this Agreement, any Purchase Order, any other agreement between (a) Buyer or any of its Affiliates and (b) Seller or any of its Affiliates, or otherwise.
Section 5.08 Purchase-Money Security Interest. To secure Buyer's prompt and complete payment and performance of any and all present and future indebtedness, obligations and liabilities of Buyer to Seller, Buyer hereby grants Seller a first-priority security interest, in all inventory of goods purchased under this Agreement (including Goods and Non-Conforming Goods), wherever located, and whether now existing or hereafter arising or acquired from time to time, and in all accessions thereto and replacements or modifications thereof, as well as all proceeds (including insurance proceeds) of the foregoing. Buyer acknowledges that the security interest granted under this Section 5.08 is a purchase-money security interest under the law governing this Agreement. Seller may file a financing statement for such security interest and Buyer shall execute such statements or other documentation necessary to perfect Seller's security interest in such Goods. Buyer also authorizes Seller to execute, on Buyer's behalf, such statements or other documentation necessary to perfect Seller's security interest in such Goods. Seller shall be entitled to all applicable rights and remedies of a secured party under applicable Law. The security interest granted by this Section shall automatically discharge upon payment for the applicable Goods and Seller shall file all documentation necessary confirm release of any such lien.
ARTICLE VI
Certain Obligations of Buyer and Seller
Section 6.01 Certain Prohibited Acts. Notwithstanding anything to the contrary in this Agreement, neither Buyer nor Seller, nor any of their Personnel, shall:
		(a)
	make any representations, conditions, warranties, guarantees, indemnities, similar claims or other commitments:

		(i)
	actually, apparently or ostensibly on behalf of the other Party, or

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		(ii)
	to any customer or other Person with respect to the Goods, which are additional to or inconsistent with any then-existing representations, conditions, warranties, guarantees, indemnities, similar claims or other commitments in this Agreement or any written documentation provided by Seller to Buyer or Seller to Buyer;

		(b)
	engage in any unfair, competitive, misleading or deceptive practices respecting Seller, Seller's Trademarks or the Goods, including any product disparagement; and

		(c)
	separate any software or accessories sold, bundled or packaged with any Good from such Good or sell, license or distribute such software on a standalone basis, or remove, translate or modify the contents or documentation of or related to such software or accessories, including any customer license agreements or warranty statements; provided however that the limitation in this subsection (c) shall not apply to any software or accessories the designs or Intellectual property for which are owned, licensed, or sourced by Buyer.

Section 6.02 Restrictions on Sales or Delivery Outside the Territory. INTENTIONALLY DELETED
Section 6.03 Government Contracts. Buyer shall not resell Goods to any Governmental Authority or its respective agencies without Seller's prior written approval. Unless otherwise separately agreed in writing between Seller and Buyer, no provisions required in any government contract or subcontract related thereto shall be a part of this Agreement or imposed upon or binding upon Seller, and this Agreement shall not be deemed an acceptance of any government provisions that may be included or referenced in Buyer's request for quotation, Purchase Order or any other document.
Section 6.04 Credit Risk on Resale of the Goods to Customers. Buyer shall be responsible for all credit risks with respect to, and for collecting payment for, all products (including Goods) sold to its customers or other third parties, whether or not Buyer has made full payment to Seller for such products. The inability of Buyer to collect the purchase price for any product shall not affect Buyer's obligation to pay Seller for any Goods.
Section 6.05 Buyer's Financial Condition.
		(a)
	Each issuance of a Purchase Order to Seller will constitute Buyer's representation and warranty that:

		(i)
	Buyer is not insolvent on a balance sheet basis;

		(ii)
	Buyer is paying all debts as they become due;

		(iii)
	Buyer is able to pay for the Goods identified in such Purchase Order in accordance with the terms of this Agreement;

		(iv)
	Buyer is in compliance with all loan covenants and other obligations to which it is subject; and

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		(v)
	all financial information provided to Seller concerning Buyer is true and accurate, and fairly represents Buyer's financial condition as of the date such information is provided or the specific time period stated in the information.

		(b)
	Buyer shall furnish Seller with statements accurately and fairly evidencing Buyer's financial condition as Seller may, from time to time, reasonably request. Without limitation of the foregoing, Buyer shall furnish to Seller copies of any quarterly or annual financial statements delivered by Buyer to any of its creditors within thirty (30) days following delivery of such financial statements to such creditor. Buyers filing of such financial statements with the US Securities and Exchange Commission via its EDGAR system shall be deemed delivery to Seller.

		(c)
	Buyer shall promptly notify Seller, and Seller shall promptly notify Buyer, in writing, of any and all events that have had or may have a material adverse effect on the notifying Party’s ability to timely perform its obligations under this Agreement, including:

		(i)
	any change in management;

		(ii)
	any sale, lease or exchange of a material portion of the notifying Party’s assets;

		(iii)
	a change in Control of the notifying Party; or

		(iv)
	the breach of any loan covenants or other material obligations of the notifying Party to its creditors.

Nothing in this Subsection C shall be construed to require any party to disclose any non-public information that such party reasonably believes would constitute a violation of any applicable law or regulation. Upon request, Seller may require that Buyer enter into a “Standstill Agreement” prohibiting Buyer or any individual with access to Seller’s disclosures from trading in Seller’s stock. Buyer’s filing of reports regarding such information with the US Securities and Exchange Commission via its EDGAR system shall be deemed delivery to Seller.
Section 6.06 General Compliance with Laws.
		(a)
	Buyer and Seller shall at all times comply with all Laws applicable to this Agreement, Buyer's and Seller’s operation of its business and the exercise of its rights and performance of its obligations hereunder, including the production, purchase, use or resale of the Goods.

		(b)
	Buyer and Seller shall obtain and maintain all Permits necessary to conduct their business relating to the production, purchase, use or resale of the Goods.

		(c)
	Buyer and Seller shall not engage in any activity or transaction involving the Goods, by way of production, resale, lease, shipment, use or otherwise, that violates any Law.

ARTICLE VII
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Representations and Warranties
Section 7.01 Buyer's Representations and Warranties. Buyer represents and warrants to Seller that:
		(a)
	it is a corporation, duly incorporated and validly existing under the laws of the Province of Quebec;

		(b)
	it is duly licensed or registered to carry on business in every jurisdiction in which such license or registration is required for purposes of this Agreement, except where the failure to be so licensed or registered, in the aggregate, would not reasonably be expected to adversely affect its ability to perform its obligations under this Agreement;

		(c)
	it has all necessary power and capacity to enter into this Agreement, grant the rights and licenses granted under this Agreement, and perform its obligations hereunder;

		(d)
	the execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery of this Agreement by Buyer, have been duly authorized by all necessary action on the part of Buyer;

		(e)
	the execution, delivery and performance of this Agreement by Buyer will not violate, conflict with, require consent under or result in any breach or default under (i) any of Buyer's organizational documents (including its articles of incorporation), (ii) any applicable Law or (iii) with or without notice or lapse of time or both, the provisions of any Buyer Contract;

		(f)
	when executed and delivered by Buyer and Seller, this Agreement will constitute the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms;

		(g)
	to the best of its knowledge, it is in material compliance with all applicable Laws and Buyer Contracts relating to this Agreement, the Goods and the operation of its business (including all loan covenants and other financing obligations to which it is subject);

		(h)
	to the best of its knowledge, it has obtained all Permits required by applicable Laws to conduct its business generally and to exercise its rights and perform its obligations under this Agreement;

		(i)
	it is not insolvent and is paying all of its debts as they become due; and

		(j)
	all financial information that it has provided to Seller is true and accurate and fairly represents Buyer's financial condition.

Section 7.02 Seller's Representations and Warranties. Seller represents and warrants to Buyer that:
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		(a)
	it is a corporation, duly registered and validly existing under the laws of the Province of Ontario;

		(b)
	it is duly licensed or registered to carry on business in every jurisdiction in which such license or registration is required for purposes of this Agreement, except where the failure to be so licensed or registered, in the aggregate, would not reasonably be expected to adversely affect its ability to perform its obligations under this Agreement;

		(c)
	it has all necessary corporate power and capacity to enter into this Agreement, grant the rights and licenses granted under this Agreement, and perform its obligations hereunder;

		(d)
	the execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery of this Agreement by Seller, have been duly authorized by all necessary corporate action on the part of Seller;

		(e)
	the execution, delivery and performance of this Agreement by Seller will not violate, conflict with, require consent under or result in any breach or default under (i) any of Seller's organizational documents (including its articles of incorporation and by-laws), (ii) any applicable Law or (iii) with or without notice or lapse of time or both, the provisions of any material Seller Contract;

		(f)
	when executed and delivered by Buyer and Seller, this Agreement will constitute the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms;

		(g)
	to the best of its knowledge, it is in material compliance with all applicable Laws and Seller Contracts relating to this Agreement, the Goods and the operation of its business (including all loan covenants and other financing obligations to which it is subject); and

		(h)
	to the best of its knowledge, it has obtained all material Permits required by applicable Laws to conduct its business generally and to exercise its rights and perform its obligations under this Agreement.

Section 7.03 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES; NON-RELIANCE. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN Section 7.02 AND THE PRODUCT WARRANTY SET FORTH IN ARTICLE VIII, (A) NEITHER SELLER NOR ANY PERSON ON SELLER'S BEHALF HAS MADE OR MAKES ANY EXPRESS OR IMPLIED REPRESENTATION, WARRANTY OR CONDITION WHATSOEVER, EITHER ORAL ORWRITTEN, INCLUDING ANY IMPLIED CONDITIONS OR WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND (B) BUYER ACKNOWLEDGES THAT IT HAS NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE BY SELLER, OR ANY OTHER PERSON ON SELLER'S BEHALF,
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 EXCEPT AS SPECIFICALLY PROVIDED IN Section 7.02 AND ARTICLE VIII OF THIS AGREEMENT.
ARTICLE VIII
Product Warranty and Recall
Section 8.01 Limited Product Warranty. Subject to Section 7.03, Section 8.02, Section 8.03 and Section 8.04, Seller warrants to Buyer as follows (together constituting the "Product Warranty" hereunder):
		(a)
	The Parties intend to negotiate and enter into a separate Warranty Agreement as a supplement to this Agreement, following completion of DVP testing in order to define the applicable period for which Seller will warrant the Goods (the “Warranty Period").

		(b)
	For the duration of the Warranty Period, the Goods will:

		(i)
	conform, in all material respects, to the Specifications; and

		(ii)
	be free from significant defects in materials and workmanship (except for designs or materials provided by Buyer).

		(c)
	Buyer will receive good and valid title to the Goods, free and clear of all encumbrances

Section 8.02 Product Warranty Limitations. The Product Warranty does not apply to any Good that:
		(a)
	has been subjected to abuse, misuse, neglect, negligence, accident, improper 
testing, improper installation, improper storage, improper handling, abnormal physical stress, abnormal environmental conditions or use contrary to any instructions issued by Seller;

		(b)
	has been reconstructed, repaired or altered by Persons other than Seller or its 
authorized Representative; or

		(c)
	has been used with any hardware or product that has not been previously 
approved in writing by Seller.

Section 8.03 Buyer's Exclusive Remedy for Defective Goods. Notwithstanding any other provision of this Agreement (except for Section 8.05), this Section 8.03 contains Buyer's exclusive remedy for Defective Goods. Buyer's remedy under this Section 8.03 is conditioned upon Buyer's compliance with its obligations under Section 8.03(a) and Section 8.03(b) below. During the Warranty Period, with respect to any allegedly Defective Goods:
		(a)
	Buyer shall notify Seller, in writing, of any alleged claim or defect within twenty (20) days from the date Buyer discovers, or upon reasonable inspection should have discovered, such alleged claim or defect (but in any event before the expiration of the applicable Warranty Period);

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		(b)
	Buyer shall ship, at its expense and risk of loss, such allegedly Defective Goods to Seller's facility for inspection and testing by Seller;

		(c)
	if Seller's inspection and testing reveals, to Seller's reasonable satisfaction, that such Goods are Defective and any such defect has not been caused or contributed to by any of the factors described under Section 8.02, Seller shall and at its expense, repair or replace such Defective Goods and refund Buyers shipping costs; and

		(d)
	Seller shall ship to Buyer, at Seller's expense and risk of loss, the repaired or replaced Goods to a location designated by Buyer, and reimburse Buyer for shipping expenses incurred in returning the defective Goods to Seller.

Buyer has no right to return for repair, replacement, credit or refund any Good except as set forth in this Section 8.03 (or if otherwise applicable, Section 4.06 or Section 8.05). In no event shall Buyer reconstruct, repair, alter or replace any Good, in whole or in part, either itself or by or through any third party.
SUBJECT TO Section 8.05, THIS Section 8.03 SETS FORTH BUYER'S SOLE REMEDY AND SELLER'S ENTIRE LIABILITY FOR ANY BREACH OF THE LIMITED PRODUCT WARRANTY SET FORTH IN Section 8.03.
Section 8.04 Third-Party Products. The Parties acknowledge that the Goods purchased by Buyer under this Agreement may contain products manufactured by a third party ("Third-party Products"). The following provisions will apply to specific Third-party Products related to the warranty in Section 8.01:
		(a)
	Consigned Materials by Buyer to Seller will not be covered by the warranty in Section 8.01;

		(b)
	Third-Party Products (and materials) sourced directly by Seller from its sub-suppliers will be covered by the warranty in Section 8.01,; and

		(c)
	Third-Party Products (and materials) procured by Seller at the direction of Buyer (Directed Sourcing) will be covered by the warranty in Section 8.01, but only to the extent that Seller is able to obtain same or similar warranties from the subject third party supplier.

Notwithstanding the foregoing, if Linamar wishes to source Third-Party Products from a sub-supplier that does not offer a warranty comparable to the warranty provided in Section 8.01, the parties will discuss the business case for use of such sub-supplier and, if agreed by Buyer, will negotiate a separate limited warranty to cover such Third-Party Products.
Section 8.05 Product Withdrawal. If Seller believes that any Goods sold to Buyer may be Defective, the parties will confer in good faith and, if Buyer and Seller agree, the parties will withdraw all similar Goods from sale or use and, at Seller's option, either return such Goods to Seller (at Seller’s expense) or destroy the Goods and provide Seller with written certification of such destruction. Notwithstanding the limitations of Section 8.03, if Buyer returns all withdrawn Goods or destroys all withdrawn Goods and provides Seller with written certification of such
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 destruction following Buyer and Seller's mutually agreed upon withdrawal plan, unless any such defect has not been caused or contributed to by any of the factors described under Section 8.02, Seller shall (a) repair or replace all such returned Goods or (b) replace such destroyed Goods, in either case pursuant to the terms of Section 8.03(d).
THIS Section 8.05 SETS FORTH BUYER'S SOLE REMEDY AND SELLER'S ENTIRE LIABILITY FOR ANY GOODS THAT ARE WITHDRAWN UNDER THIS Section 8.05.
ARTICLE IX
Intellectual Property
Section 9.01 Definitions.
		(a)
	The term “Intellectual Property Rights” shall have the meaning set forth in ARTICLE I.

		(b)
	The term “Buyer Intellectual Property” means all Intellectual Property Rights owned by Buyer as of the Effective Date (or created afterwards by or on behalf of Buyer other than as contemplated by this Agreement) that relates to the Goods; provided, however, that regardless any of the language in this or related agreements, any rights or claims to rights that may be held by the United States Federal Government in Buyer Intellectual Property will be granted as applicable and necessary.

		(c)
	The term “Seller Intellectual Property” means all Intellectual Property Rights owned by Seller as of the Effective Date (or created afterwards by or on behalf of Seller other than as contemplated by this Agreement) that relates to the manufacturing of the Goods; provided, however, that regardless any of the language in this or related agreements, any rights or claims to rights that may be held by the United States Federal Government in Seller Intellectual Property will be granted as applicable and necessary.

Section 9.02 License for Use of Buyer Intellectual Property. Subject to termination as provided herein, Buyer grants to Seller an exclusive, royalty-free, worldwide license to Buyer Intellectual Property (with the right to sublicense subject to Buyer approval) with all substantial rights under the patent rights in the contemplated fields of use to the extent necessary to make, have made, and use the Goods throughout the world for the purpose of manufacturing the Goods covered by this Agreement for the benefit of Buyer or its assignee (the "License"). Buyer will maintain the patent(s) covering or comprising the Buyer Intellectual Property and pay all annuity, renewal or maintenance fees for such patent(s).
Section 9.03 License for Use of Seller Intellectual Property. Subject to termination as provided herein, Seller grants to Buyer a non-exclusive, royalty-free, worldwide license to Seller Intellectual Property (with the right to sublicense subject to Seller approval) with all substantial rights under the patent rights in the contemplated fields of use to the extent necessary for Buyer to make, have made, sell to its customers and use Goods sold to Buyer hereunder throughout the world (the "Seller License"). Seller will maintain the patent(s) covering or comprising the Seller Intellectual Property and pay all annuity, renewal or maintenance fees for such patent(s). Upon termination of this Agreement for any reason, Seller shall grant Buyer an option to negotiate a 
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non-exclusive license, on commercially reasonable terms, to any Seller Intellectual Property used in the manufacture of the Products (“Option”). If Buyer does not provide Seller with written notice of its intention to exercise the Option within six (6) months of termination of this Agreement the Option shall expire. If Buyer does provide Seller with such written notice the Parties shall enter into reasonable discussions to determine the terms and scope of the license.
Section 9.04 Joint Intellectual Property. All Buyer Intellectual Property and all modifications or improvements thereto developed in connection with the work performed under this Agreement whether by Seller or Buyer or jointly shall remain the sole and exclusive property of Buyer, and Seller hereby assigns any rights it may have in such Intellectual Property to Buyer, unless otherwise agreed by the Parties. All Seller Intellectual Property and all improvements thereto developed in connection with the work performed under this Agreement whether by Seller or Buyer or jointly shall remain the sole and exclusive property of Seller and Buyer hereby assigns any rights it may have in such Intellectual Property to Seller. Any jointly developed intellectual property that is neither Buyer Intellectual Property nor Seller Intellectual Property will be jointly owned by Seller and Buyer. (“Joint Intellectual Property”). Buyer and Seller may each commercially exploit any Joint Intellectual Property; provided, however, that neither Party may use such Joint Intellectual Property in the development or sale of products that compete with the Goods unless they are also added to the definition of Products for the purpose of this Agreement.
Section 9.05 Prohibited Acts. Buyer and Seller shall not:
		(a)
	take any action that may interfere with any of the other Party’s Intellectual Property Rights, including the other Party’s ownership or exercise thereof;

		(b)
	challenge any right, title or interest of the other Party in the other Party’s Intellectual Property Rights;

		(c)
	make any claim or take any action adverse to the other Party’s ownership of its Intellectual Property Rights;

		(d)
	register or apply for registrations for, anywhere in the world, the other Party’s Trademarks or any other trademark that is similar to the other Party’s Trademark or that incorporates such trademarks in whole or in confusingly similar part;

		(e)
	use any mark, anywhere, that is confusingly similar to the other Party’s Trademarks;

		(f)
	engage in any action that tends to disparage, dilute the value of, or reflect negatively on the products purchased under this Agreement (including Goods) or any of the other party’s Trademark;

		(g)
	misappropriate any of the other Party’s Trademarks for use as a domain name without the other Party’s prior written consent; or

		(h)
	alter, obscure or remove any of the other Party’s Trademarks or trademark or copyright notices or any other proprietary rights notices placed on the products purchased under this Agreement (including Goods), marketing materials or other materials.

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ARTICLE X
Confidentiality
Section 10.01 Scope of Confidential Information. From time to time during the Term, one Party (as the "Disclosing Party") may disclose or make available to the other Party (as the "Receiving Party") information about its business affairs, goods and services (including any Forecasts), confidential information and materials comprising or relating to Intellectual Property Rights, trade secrets, third-party confidential information and other sensitive or proprietary information. Such information, as well as the terms of this Agreement, whether oral or in written, electronic or other form or media, and marked or designated or otherwise identified as "confidential" constitutes "Confidential Information" hereunder. Confidential Information does not include information that, at the time of disclosure and as established by documentary evidence:
		(a)
	is or becomes generally available to and known by the public other than as a result of, directly or indirectly, any breach of this Article X by the Receiving Party or any of its Representatives;

		(b)
	is or becomes available to the Receiving Party on a non-confidential basis from a third-party source, provided that such third party is not and was not prohibited from disclosing such Confidential Information;

		(c)
	was known by or in the possession of the Receiving Party or its Representatives before being disclosed by or on behalf of the Disclosing Party;

		(d)
	was or is independently developed by the Receiving Party without reference to or use of, in whole or in part, any of the Disclosing Party's Confidential Information; or

		(e)
	is required to be disclosed under applicable Law.

Section 10.02 Protection of Confidential Information. The Receiving Party shall, for three years from disclosure of such Confidential Information:
		(a)
	protect and safeguard the confidentiality of the Disclosing Party's Confidential Information with at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care and in accordance with applicable Laws;

		(b)
	not use the Disclosing Party's Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights or perform its obligations under this Agreement; and

		(c)
	not disclose any such Confidential Information to any Person, except to the Receiving Party's Representatives who need to know the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under this Agreement.

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The Receiving Party shall be responsible for any breach of this Section 10.02 caused by any of its Representatives. The provisions of this ARTICLE X shall survive termination or expiration of this Agreement for any reason for a period of one year after such termination or expiration, unless otherwise required under any applicable Law. On the expiration or earlier termination of this Agreement or at the Disclosing Party's written request, the Receiving Party and its Representatives shall, under this ARTICLE X, promptly return or destroy all Confidential Information and copies thereof that it has received under this Agreement.
In the event of any conflict between the terms and provisions of this ARTICLE X and those of any other provision of this Agreement, the terms and provisions of this ARTICLE X shall prevail.
ARTICLE XI
Tooling
Section 11.01 The majority of all Equipment and Tooling used to manufacture the Goods is owned by Seller. Buyer has no right, title, or interest in or to any of the Seller-owned Equipment and Tooling.  A portion of the Seller-owned Equipment and Tooling is included in an amortized pricing schedule as outlined in Schedule 1.  Custom Tooling used to manufacture the Goods is owned by Buyer and defined in Schedule 1.  Buyer-owned Custom Tooling will be managed according to the following provisions:
		(a)
	The right, title and interest in and to all supplies, materials, tools, jigs, dies, gauges, fixtures, molds, patterns, equipment, designs, drawings, specifications, spare parts, trial parts, ancillary products, items owned by Buyer and other items furnished by Buyer or its customers to Seller for use in manufacturing Goods, or for which Seller is reimbursed by Buyer or its customers (“Buyer’s Property”), shall be and remain the property of Buyer and/or its customers.  Seller shall bear the risk of loss of and damage to such Buyer’s Property.  Seller will: (i) properly house and maintain Buyer’s Property on Seller’s premises; (ii) not use Buyer’s Property for any purpose other than for performance under the Purchase Order; (iii) prominently mark Buyer’s Property as property of Buyer; (iv) refrain from commingling Buyer’s Property with the property of Seller or with that of a third party; (v) adequately insure Buyer’s Property against loss or damage, including but not limited to maintaining full fire and extended coverage insurance for replacement value and naming Buyer as an additional insured; (vi) take reasonable steps to ensure that Buyer’s Property does not become subject to any liens or other claims; and (vii) not move Buyer’s Property to another location whether owned by Seller or a third party, without the prior written consent of Buyer.

		(b)
	Unless otherwise agreed to in writing by Buyer, Seller at its own expense shall keep Buyer’s Property in good condition and repair, including repair necessitated by wear and tear and other usage by Seller.  In the event that it becomes necessary, as determined by either Buyer or Seller, to replace Buyer’s Property due to normal use by the Seller, or otherwise, said replacement of Buyer’s Property shall be at the sole expense of the Buyer and said replacement Buyer’s Property shall remain the property of Buyer.  Buyer does not guarantee the accuracy of any Buyer’s Property or the availability or suitability of any supplies or material furnished by it.  Seller assumes sole responsibility for inspecting, testing and approving all Buyer’s Property or

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 other materials supplied by Buyer prior to any use by Seller.
		(c)
	Buyer will have the right to enter Seller’s premises at reasonable times to inspect Buyer’s Property and Seller’s records pertaining thereto.  Upon written request, Seller, at its expense, and only upon the payment of all outstanding accounts owed to Seller or such other amount as may be agreed to by the Parties, shall immediately deliver Buyer’s Property, at Buyer’s option, Ex-works according to Incoterms 2020, and properly packed and marked in accordance with the requirements of the carrier and Buyer at a delivery location designated by Buyer.  Seller will cooperate with Buyer’s removal of Buyer’s Property from Seller’s premises.

		(d)
	Seller expressly waives and releases, and agrees not to file or otherwise assert or prosecute or suffer to permit any statutory, equitable or other liens, including but not limited to any molder liens, tool liens, builder liens and the like, that Seller has or might have on or in connection with Buyer’s Property for all work, including but not limited to, designing,

manufacturing, improving, maintaining, servicing, using, assembling, fabricating or developing Buyer’s Property. Seller hereby agrees to indemnify, defend and hold harmless Buyer from and against any loss, liabilities, costs, expenses, suits, actions, claims and all other obligations and proceedings, including without limitation all attorney’s fees and all other cost of litigation that are in any way related to releasing, terminating or otherwise removing all such liens placed on Buyer’s Property.  Seller will assign to Buyer any claims Seller has against third parties with respect to Buyer’s Property.
		(e)
	Seller acknowledges and agrees that: (i) Buyer may not be the manufacturer of Buyer’s Property nor the manufacturer’s agent nor a dealer therein; (ii) Buyer is bailing Buyer’s Property to Seller for Seller’s benefit; and (iii) Seller has inspected Buyer’s Property and is satisfied that Buyer’s Property is suitable and fit for its purposes.  Except in cases in which Buyer is design responsible for the Buyer’s Property, BUYER HAS NOT MADE AND DOES NOT MAKE ANY WARRANTY OR REPRESENTATION WHATSOEVER, EITHER EXPRESS OR IMPLIED, AS TO THE FITNESS, CONDITION, MERCHANTABILITY, DESIGN OR OPERATION OF BUYER’S PROPERTY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE.  Buyer shall not be liable to Seller for any loss, damage, injury or expense of any kind or nature caused, directly or indirectly, by Buyer’s Property, including, without limitation, its use or maintenance, or its repair, service or adjustment, or by any interruption of service or for any loss of business whatsoever or howsoever caused, including, without limitation, any anticipatory damages, loss of profits or any other indirect, special or consequential damages.

ARTICLE XII
Inspection and Audit Rights
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Section 12.01 Seller's Right of Access. Both Parties hereby grant to the other Party and its authorized Representatives, reasonable access to the disclosing Party’s premises during normal business hours for purposes of reviewing pertinent documents and other information, whether stored in tangible or intangible form, including any books, records and accounts, in any way related to the disclosing Party’s performance under this Agreement and the production, use or resale of the Goods, for the purpose of auditing the disclosing Party’s compliance with the terms of this Agreement, including conducting a physical inventory inspection, provided that any physical inventory inspection may take place no more frequently than semi-annually. Both Parties agree to cooperate fully and in good faith with the scope and scheduling of any such audit or inspection.
Section 12.02 Records. Both Parties shall maintain, during the Term and for a period of three years after the Term complete and accurate books and records and any other financial information.
ARTICLE XIII
Insurance
Section 13.01 Insurance. Without limiting either Party’s indemnification obligations under this Agreement, during the Term and for a period of five years both Party’s shall, at their own expense, maintain and carry in full force and effect, subject to the requirements set forth in Section 13.02 and appropriate levels of self-insurance, commercial general liability with limits no less than $5 million USD for each occurrence and $10 million in the aggregate, including bodily injury and property damage and products and completed operations and advertising liability, which policy will include contractual liability coverage insuring the activities of the Parties under this Agreement.
Section 13.02 Insurance Contract Requirements. The Parties shall ensure that all insurance policies required under Section 13.01:
		(a)
	are issued by insurance companies of reasonable commercial repute;

		(b)
	provide that such insurance carriers give the other Party at least 30 days prior Notice of cancellation or non-renewal of policy coverage, provided that, before such cancellation, the cancelling Party has new insurance policies in place that meet the requirements of this ARTICLE XIII;

		(c)
	provide that such insurance be primary insurance and any similar insurance in the name of or for the benefit of the Parties, or both, shall be excess and noncontributory;

		(d)
	waive any right of subrogation of the insurers against the other Party.

Section 13.03 Insurance Certificates. Upon either Party’s written request, the receiving Party shall provide the requesting Party with copies of the certificates of insurance and policy endorsements for all insurance coverage required by this ARTICLE XIII, and shall not do anything to invalidate such insurance. This Section 13.03 shall not be construed in any manner as waiving, restricting or limiting the liability of either Party for any obligations imposed under this
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 Agreement (including but not limited to, any provisions requiring a party hereto to indemnify, defend and hold the other harmless under this Agreement).
ARTICLE XIV
Indemnification
Section 14.01 Mutual Indemnification. Subject to the terms and conditions of this Agreement, a Party (as "Indemnifying Party") shall indemnify, defend and hold harmless the other Party (collectively, "Indemnified Parties") against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable legal fees, disbursements and charges, fees and the costs of enforcing any right to indemnification under this Agreement and the cost of pursuing any insurance providers, awarded against any Indemnified Party in a final non-appealable judgment (collectively, "Losses"), arising out or resulting from any third-party Claim alleging:
		(a)
	a material breach or non-fulfillment of any of Indemnifying Party's representations, warranties, conditions or covenants set forth in this Agreement;

		(b)
	any grossly negligent or more culpable act or omission of Indemnifying Party or any of its Representatives (including any recklessness or willful misconduct) in connection with Indemnifying Party's performance of its obligations under this Agreement;

		(c)
	any bodily injury, death of any Person or damage to real or tangible personal property caused by the willful or grossly negligent acts or omissions of Indemnifying Party or any of its Representatives.

Section 14.02 Exceptions and Limitations on Indemnification. Notwithstanding anything to the contrary in this Agreement, Indemnifying Party is not obligated to indemnify or defend any Indemnified Party against any Claim (whether direct or indirect) if such Claim or the corresponding Losses result directly from, in whole or in part, Indemnified Party's or its Personnel's:
		(a)
	gross negligence or more culpable act or omission (including recklessness or willful misconduct); or

		(b)
	bad faith failure to comply with any of its obligations set forth in this Agreement; or

		(c)
	use of the Goods in any manner not otherwise authorized under this Agreement or that does not materially conform with any usage instructions, guidelines, specifications provided by Seller.

Section 14.03 Seller Intellectual Property Indemnification. Subject to the terms and conditions of Section 14.04, Seller shall defend, hold harmless and indemnify, the Indemnified Parties from and against all Losses awarded against any Buyer Indemnitee in a final non-appealable judgment arising out of any third-party Claim alleging that any of the Goods or Buyer's receipt or use thereof infringes any Intellectual Property Right.
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If the Goods, or any part of the Goods, become, or in Seller's opinion are likely to become, subject to a Claim that qualifies for intellectual property indemnification coverage under this Section 14.03, Seller shall, at its sole option and expense, notify Buyer to cease using such Goods.
Section 14.04 Exceptions to Seller's Intellectual Property Indemnification. Notwithstanding anything to the contrary in this Agreement, Seller is not obligated to indemnify or defend any Indemnified Parties against any Claim (whether direct or indirect) under Section 14.03 if such Claim or the corresponding Losses arise out of or result from, in whole or in part,:
		(a)
	the circumstances described in Section 14.02(a), Section 14.02(b) and Section 14.02(c);

		(b)
	Buyer's marketing, advertising, promotion or sale or any product containing the Goods;

		(c)
	use of the Goods in combination with any products, materials or equipment supplied to Buyer by a Person other than Seller or its authorized Representatives, if the infringement would have been avoided by the use of the Goods not so combined;

		(d)
	any modifications or changes made to the Goods by or on behalf of any Person other than Seller or its Representatives, if the infringement would have been avoided without such modification or change; or

		(e)
	goods (including Goods), products or assemblies manufactured or designed by Buyer.

Section 14.05 Exclusive Remedy. SECTION 14 SETS FORTH THE ENTIRE LIABILITY AND OBLIGATION OF EACH INDEMNIFYING PARTY AND THE SOLE AND EXCLUSIVE REMEDY FOR EACH INDEMNIFIED PARTY FOR ANY DAMAGES COVERED BY SECTION 14.
ARTICLE XV
NO LIABILITY FOR CONSEQUENTIAL OR INDIRECT DAMAGES
Section 15.01 NO LIABILITY FOR CONSEQUENTIAL OR INDIRECT DAMAGES.EXCEPT FOR OBLIGATIONS TO MAKE PAYMENT UNDER THIS AGREEMENT, LIABILITY FOR BREACH OF CONFIDENTIALITY, OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS, IN NO EVENT SHALL EITHER PARTY OR THEIR REPRESENTATIVES BE LIABLE FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES OR DIMINUTION IN VALUE, ARISING OUT OF OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE FORESEEABLE, (B) WHETHER OR NOT THE OTHER PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.
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31

​
Section 15.02 MAXIMUM LIABILITY FOR DAMAGES. EXCEPT FOR OBLIGATIONS TO MAKE PAYMENT UNDER THIS AGREEMENT, LIABILITY FOR BREACH OF CONFIDENTIALITY, OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS, IN NO EVENT SHALL EACH PARTY'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED 300% THE TOTAL OF THE AMOUNTS PAID AND AMOUNTS ACCRUED BUT NOT YET PAID TO SELLER UNDER THIS AGREEMENT.
Section 15.03 ASSUMPTION OF RISK. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER ASSUMES ALL RISK AND LIABILITY FOR THE RESULTS OBTAINED BY THE USE OF ANY GOODS IN THE PRACTICE OF ANY PROCESS, WHETHER IN TERMS OF OPERATING COSTS, GENERAL EFFECTIVENESS, SUCCESS OR FAILURE, AND REGARDLESS OF ANY ORAL OR WRITTEN STATEMENTS MADE BY SELLER, BY WAY OF TECHNICAL ADVICE OR OTHERWISE, RELATED TO THE USE OF THE GOODS.
Section 15.04 EXCEPTIONS TO LIMITATIONS. Notwithstanding any other provision of this Agreement, the limitations on liability and damages set forth in this ARTICLE 15 shall not apply to claims involving gross negligence or more culpable act or omission (including recklessness or willful misconduct) or bad faith failure to comply with any obligations set forth in this Agreement.
ARTICLE XVI
Term; Termination
Section 16.01 Initial Term. The term of this Agreement commences on the Effective Date and continues for a period of seven years, unless and until earlier terminated under the terms of this Agreement or applicable Law (the "Initial Term" or the “Term”).
Section 16.02 Renewal Term. Upon expiration of the Initial Term, the term of this Agreement will automatically renew for to two additional successive years unless and until either Party provides Notice of non-renewal at least six months before the end of the then-current term (each, a "Renewal Term" and together with the Initial Term, the "Term"), unless the Initial Term or any Renewal Term is earlier terminated pursuant to the terms of this Agreement or applicable Law. If the Term is renewed for any Renewal Term(s) pursuant to this Section 16.02, the terms and conditions of this Agreement during each such Renewal Term will be the same as the terms in effect immediately before such renewal. If either Party provides timely Notice of its intent not to renew this Agreement, then, unless earlier terminated in accordance with its terms, this Agreement terminates on the expiration of the Initial Term or then-current Renewal Term, as applicable.
Section 16.03 Seller's Right to Terminate the Agreement. Seller may terminate this Agreement (including all Individual Transactions, in accordance with Section 3.03), by providing Notice to Buyer:
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32

​
		(a)
	if Buyer fails to pay any amount when due under this Agreement, and payment is not made within 5 business days after Seller gives notice of such failure  ("Payment Failure");

		(b)
	if Buyer is in breach of, or threatens to breach, any representation, warranty, condition or covenant of Buyer under this Agreement (other than committing a Payment Failure) and either the breach cannot be cured or, if the breach can be cured, it is not cured by Buyer within a commercially reasonable period of time under the circumstances, in no case exceeding ten days following Buyer's receipt of Notice of such breach;

		(c)
	pursuant to and in accordance with Section 5.04(f);

		(d)
	if Buyer:

		(i)
	becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due;

		(ii)
	files an application for voluntary bankruptcy;

		(iii)
	has a bankruptcy order made against it or otherwise becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency Law;

		(iv)
	seeks reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts;

		(v)
	makes or seeks to make a general assignment for the benefit of its creditors; or

		(vi)
	applies for or has an interim receiver, receiver, receiver-manager, trustee, monitor, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business;

		(e)
	if Seller terminates any other agreement between (i) Seller and (ii) Buyer or Buyer’s Affiliates, due to Buyer’s or Buyer’s Affiliates’ breach or non-performance thereof;

		(f)
	if, without obtaining Seller's prior written consent,

		(i)
	Buyer sells, leases or exchanges a material portion of Buyer's assets to a Person that is a material competitor to Seller;

		(ii)
	Buyer merges or amalgamates with or into another Person that is a material competitor to Seller; or

		(iii)
	a change in Control of Buyer occurs which results in Buyer being controlled by a material competitor to Seller.

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33

Any termination under this Section 16.03 will be effective on Buyer's receipt of Seller's Notice of termination or such later date (if any) set forth in such termination Notice. Upon the occurrence of any of the events described under this Section 16.03, Seller may, in addition to any of its other rights to suspend performance under this Agreement or applicable Law, immediately suspend its performance under all or any part of this Agreement, without any liability of Seller to Buyer, and, notwithstanding anything to the contrary contained in this Agreement (including the limitations set forth in ARTICLE XV) Seller may, at its election, recover any and all damages (including direct, indirect, incidental and consequential damages), costs (including legal fees, disbursements and charges), expenses and losses incurred by Seller as a result of any event described under this Section 16.03 or any breach of this Agreement by Buyer.
Further to the above Seller shall have the right to terminate this Agreement, for convenience. in whole or in part, should Buyer fail within the first twenty-four (24) months following the execution of this Agreement to consistently issue binding Purchase Orders in accordance with s. 3.02 of this Agreement, that would, in Seller’s sole discretion and good faith, allow Seller to make commercially reasonable margins on the performance of its ongoing obligations. Should Seller elect to exercise this right of termination, it shall provide Buyer at least one-hundred and eighty (180) days’ written notice. Upon providing such notice, Seller will act in a commercially reasonable fashion to assist Buyer in the conclusion or discontinuation of all ongoing services and to facilitate the transition of services or prototype supply to an alternative source.
Section 16.04 Buyer's Right to Terminate. Buyer may terminate this Agreement by providing Notice to Seller:
		(a)
	if Seller is in material breach of any representation, warranty or covenant of Seller under this Agreement, and either the breach cannot be cured or, if the breach can be cured, it is not cured by Seller within a commercially reasonable period of time (in no case exceeding ten days after Seller's receipt of Notice of such breach; or

		(b)
	if Seller:

		(i)
	becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due;

		(ii)
	files an application for voluntary bankruptcy;

		(iii)
	has a bankruptcy order made against it or otherwise becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency Law;

		(iv)
	seeks reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts;

		(v)
	makes or seeks to make a general assignment for the benefit of its creditors; or

		(vi)
	applies for or has an interim receiver, receiver, receiver-manager, trustee, monitor, custodian or similar agent appointed by order of any court of

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34

 competent jurisdiction to take charge of or sell any material portion of its property or business; or
		(c)
	in the event of a Force Majeure Event affecting Seller's performance under this Agreement for more than one hundred and twenty consecutive days.

Notwithstanding any termination, Buyer shall pay to Seller all amounts due to Seller for conforming Goods delivered by Seller to Buyer before Seller's receipt of the termination Notice in accordance with existing payment terms. In addition, unless Buyer has exercised its right to terminate due to a material breach of product quality by Seller, Buyer shall reimburse Seller for all of Seller's out-of-pocket costs and expenses (including raw materials, machinery, unamortized capital costs, unallocated overhead and equipment purchases) incurred by Seller before receipt of Buyer's termination Notice that arise from or relate to this Agreement or any Purchase Order issued by Buyer to Seller before Seller's receipt of such notice (each, a "Reimbursement Payment"). Seller shall submit its claim for any Reimbursement Payment within 30 days after the effective date of termination and Buyer will pay such claim within 45 days after receipt of Seller’s invoice. Any termination under this Section 16.04 will be effective on the latest to occur of Seller's receipt of Buyer's written Notice of termination, Seller's receipt of the Reimbursement Payment or such other later date (if any) set forth in such termination Notice (if and to the extent that such later date is approved by Seller in writing).
Section 16.05 Effect of Expiration or Termination
		(a)
	Upon the termination of this Agreement pursuant to Section 16.04(a) or Section 16.04(b), all indebtedness of Buyer to Seller under this Agreement, any other agreement or otherwise, of any kind, shall become immediately due and payable to Seller, without further notice to Buyer.

		(b)
	Expiration or termination of the Term will not affect any rights or obligations of the Parties that:

		(i)
	come into effect upon or after termination or expiration of this Agreement; or

		(ii)
	otherwise survive the expiration or earlier termination of this Agreement under Section 17.04 and were incurred by the Parties before such expiration or earlier termination.

		(c)
	Any termination under this Agreement pursuant to Section 16.04(a) or Section 16.04(b) automatically operates as a cancellation of any deliveries of Goods to Buyer that are scheduled to be made subsequent to the effective date of termination, whether or not any orders for such Goods had been accepted by Seller. With respect to any Goods that are still in transit upon termination of this Agreement, Seller may require, in its sole discretion, that all sales and deliveries of such Goods be made on either a cash-only or certified-check basis.

		(d)
	Termination of this Agreement will not constitute a waiver of any of the terminating Party's rights or remedies under this Agreement, at law, in equity or otherwise.

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35

​
Section 16.06  Transition of Supply. Upon the expiration or earlier termination of this Agreement for whatever reason, Seller agrees to take commercially reasonable actions  in order to minimize the prospect of an interruption in the supply of Goods to Buyer.  Among other things, Seller agrees to take such actions as may be reasonably required by Buyer to accomplish the transition from Seller to an alternative supplier, including without limitation the following:
		(a)
	Seller shall provide all notices necessary or desirable for Buyer to resource the Purchase Order to an alternative supplier.

		(b)
	Seller shall provide a sufficient bank of Goods to ensure that the transition to any alternative supplier chosen by Buyer will proceed smoothly, as reasonably determined by Buyer.  At Buyer’s request, Seller shall assure proper storage for the bank of Goods.

		(c)
	Seller shall provide to Buyer all tooling and any other property furnished by or belonging to Buyer or any of Buyer’s customers in as good a condition as when received by Seller, reasonable wear and tear excepted.  Buyer and the alternative supplier reserve the right to access and actively participate during the disconnect or disassemble process for the property.

		(d)
	Seller shall, at Buyer’s option: (i) assign to Buyer any or all supply contracts or purchase orders for raw material or components relating solely to the Agreement; (ii) sell to Buyer, at Seller’s cost, any or all perishable tooling and Goods inventory relating solely to the Agreement; and/or (iii) sell to Buyer any of Seller’s Property relating solely to the Agreement, at a price equal to the unamortized portion of the cost of such items less any amounts Buyer previously paid to Seller for the cost of such items.  Seller shall provide documentation supporting the original cost of any unamortized items.

		(e)
	Seller shall cooperate with Buyer and perform a reasonable tooling and property exit process as a standard course of conducting business.  Seller also agrees to provide all reasonable information requested or required by Buyer for the transition.

		(f)
	The term “alternative supplier” expressly includes, but is not limited to, a Buyer-owned facility.

ARTICLE XVII
Miscellaneous
Section 17.01 Further Assurances. Both parties will reasonably cooperate to, execute and deliver all such further documents and instruments, and take all such further acts, necessary to give full effect to this Agreement.
Section 17.02 Relationship of the Parties. The relationship between Seller and Buyer is solely that of vendor and vendee, and the Parties are independent contracting parties. Nothing in this Agreement creates any agency, joint venture, partnership or other form of joint enterprise, employment or fiduciary relationship between the Parties. Neither Party has any express or implied right or authority to assume or create any obligations on behalf of or in the name of the
​

36

other Party or to bind the other Party to any contract, agreement or undertaking with any third party.
Section 17.03 Entire Agreement. Subject to Section 2.02, this Agreement, including and together with any related exhibits, schedules, attachments and appendices, together with any Basic Purchase Order Terms, constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, regarding such subject matter.
Section 17.04 Survival.
		(a)
	Subject to the limitations and other provisions of this Agreement: (a) warranties provided under Section 8.01 shall survive for the applicable Warranty Period; (b) the remaining representations and warranties of the Parties contained herein will survive the expiration or earlier termination of this Agreement for a period of six months after such expiration or termination; or such other longer time as may be specified in the applicable warranty; and (c) any provision that, in order to give proper effect to its intent, should survive such expiration or termination, will survive the expiration or earlier termination of this Agreement for the period specified therein, of if no period is specified, for a period of six months after such expiration or termination. All other provisions of this Agreement will not survive the expiration or earlier termination of this Agreement.

		(b)
	Notwithstanding any right under any applicable statute of limitations to bring a claim, no Action based upon or arising in any way out of this Agreement may be brought by either Party after the expiration of the applicable survival or other period set forth in this Section 17.04 and the Parties waive the right to file any such Action after the expiration of the applicable survival or other period; provided, however, that the foregoing waiver and limitation do not apply to the collection of any amounts due to Seller under this Agreement.

Section 17.05 Notices. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (each, a "Notice") must be in writing and addressed to the other Party at its address set forth below (or to such other address that the receiving Party may designate from time to time in accordance with this section). Notices sent in accordance with this Section will be deemed effectively given: (a) when received, if delivered by hand, with signed confirmation of receipt; (b) when received, if sent by a nationally recognized overnight courier, signature required; (c) when sent, if by facsimile or email (in each case, with confirmation of transmission) if sent during the addressee's normal business hours and on the next business day if sent after the addressee's normal business hours; and (d) on the date delivered by certified or registered mail return receipt requested, postage prepaid.
	​

	​

	Notice to Seller:
	287 Speedvale Ave. W, Guelph ON

	Email:
	roger.fulton@linamar.com

	Attention:
	Office of the General Counsel

​
​

37

	Notice to Buyer:
	730 Boulevard Du Cure-Bovin, Boisbriand, QC,

	Facsimile:
	n/a

	Email:
	kulwant.sandher@gmail.com

	Attention:
	Chief Financial Officer

​
Section 17.06 Interpretation. For purposes of this Agreement: (a) the words "include," "includes" and "including" is deemed to be followed by the words "without limitation"; (b) the word "or" is not exclusive; (c) the words "herein," "hereof," "hereby," "hereto" and "hereunder" refer to this Agreement as a whole; (d) words denoting the singular have a comparable meaning when used in the plural, and vice-versa; and (e) words denoting any gender include all genders. Unless the context otherwise requires, references in this Agreement: (x) to sections, exhibits, schedules, attachments and appendices mean the sections of, and exhibits, schedules, attachments and appendices attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. The Parties drafted this Agreement without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument or causing any instrument to be drafted. The exhibits, schedules, attachments and appendices referred to herein are an integral part of this Agreement to the same extent as if they were set forth verbatim herein. Except as otherwise expressly provided in this Agreement, all dollar amounts referred to in this Agreement are stated in Canadian currency.
Section 17.07 Headings. The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.
Section 17.08 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability does not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.
Section 17.09 Amendment and Modification. No amendment to or modification, rescission, termination or discharge of this Agreement or any Basic Purchase Order Terms is effective unless it is in writing, identified as an amendment to or modification, rescission, termination or discharge of this Agreement or the Basic Purchase Order Terms and signed by an authorized Representative of each Party.
Section 17.10 Waiver.
		(a)
	No waiver under this Agreement is effective unless it is in writing, identified as a waiver to this Agreement and signed by an authorized representative of the Party waiving its right.

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38

		(b)
	Any waiver authorized on one occasion is effective only in that instance and only for the purpose stated and does not operate as a waiver on any future occasion.

		(c)
	None of the following constitutes a waiver or estoppel of any right, remedy, power, privilege or condition arising from this Agreement:

		(i)
	any failure or delay in exercising any right, remedy, power or privilege or in enforcing any condition under this Agreement; or

		(ii)
	any act, omission or course of dealing between the Parties.

Section 17.11 Cumulative Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either Party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available at law, in equity, by statute, in any other agreement between the Parties or otherwise. Notwithstanding the previous sentence, the Parties intend that Buyer's rights under Section 4.04, Section 4.06, and Buyer’s rights under ARTICLE XIV are Buyer's exclusive remedies for the events specified therein.
Section 17.12 Equitable Remedies. Both Parties acknowledge and agree that (a) a breach or threatened breach by either Party of any of its obligations under ARTICLE X would give rise to irreparable harm to the other Party for which monetary damages would not be an adequate remedy and (b) in the event of a breach or a threatened breach by one Party of any such obligations, the other Party shall, in addition to any and all other rights and remedies that may be available to the Party at law, at equity or otherwise in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction, without any requirement to post a bond or other security, and without any requirement to prove actual damages or that monetary damages will not afford an adequate remedy. The Parties agree that neither Party will oppose or otherwise challenge the appropriateness of equitable relief or the entry by a court of competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of this Section 17.12.
Section 17.13 Assignment. Except in connection with a sale of all, or substantially all, assets of the assigning party, neither party can assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other, which consent shall not be unreasonably withheld.
Any purported assignment or delegation in violation of this Section 17.13 is null and void. No assignment or delegation relieves the assigning or delegating Party of any of its obligations under this Agreement.
Section 17.14 Successors and Assigns. This Agreement is binding on and inures to the benefit of the Parties and their respective successors and assigns.
Section 17.15 No Third-party Beneficiaries. Except as expressly set forth in this Section 17.15, this Agreement benefits solely the parties to this Agreement and their respective permitted successors and permitted assigns and nothing in this Agreement, express or implied, confers on 
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39

any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
The Parties hereby designate each Indemnified Party as a third-party beneficiary of ARTICLE XIV, having the right to enforce such Section.
Section 17.16 Dispute Resolution. Any dispute, controversy or claim arising out of or relating to this Agreement, or the breach, termination or invalidity hereof (each, a "Dispute"), shall be submitted for negotiation and resolution to the President of Seller (or to such other person of equivalent or superior position designated by Seller in a written Notice to Buyer) and the President of Buyer (or to such other person of equivalent or superior position designated by Buyer in a written Notice to Seller), by delivery of written Notice (each, a "Dispute Notice") from either of the Parties to the other Party. Such persons shall negotiate in good faith to resolve the Dispute. If the Parties are unable to resolve any Dispute within seven days after delivery of the applicable Dispute Notice, either Party may file suit in a court of competent jurisdiction in accordance with the provisions of Section 17.18 and Section 17.19 hereunder.
Section 17.17 Governing Law. This Agreement, including all Basic Purchase Order Terms, exhibits, schedules, attachments and appendices attached hereto and thereto, and all matters arising out of or relating to this Agreement, are governed by, and construed in accordance with, the Laws of the Province of Ontario and the federal Laws of Canada applicable therein without giving effect to any choice or conflict of law provision or rule (whether of the Province of Ontario or any other jurisdiction) to the extent such principles or rules would require or permit the application of the Laws of any jurisdiction other than those of Ontario. The Parties agree that the United Nations Convention on Contracts for the International Sale of Goods does not apply to this Agreement.
Section 17.18 Choice of Forum. Any action or proceeding arising out of this Agreement, including all Basic Purchase Order Terms, Releases, exhibits, schedules, attachments and appendices attached to this Agreement and thereto, and all transactions contemplated hereby instituted in the provincial courts of Ontario, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such action or proceeding. The parties irrevocably and unconditionally waive any objection to the venue of any action or proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such action or proceeding brought in any such court has been brought in an inconvenient forum. Each Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind whatsoever against the other Party in any way arising from or relating to this Agreement, including all Basic Purchase Order Terms, Releases and exhibits, schedules, attachments and appendices attached to this Agreement and thereto, and all contemplated transactions, including contract, equity, tort, fraud and statutory claims, in any forum other than as provided in this Section 17.18. Each Party agrees that a final judgment in any such action, litigation or proceeding is conclusive and may be enforced in other jurisdictions by action on the judgment or in any other manner provided by Law.
Section 17.19 Waiver of Jury Trial. Each Party acknowledges and agrees that any controversy that may arise under this Agreement, including any Basic Purchase Order Terms, Releases, exhibits, schedules, attachments and appendices attached to this Agreement, is likely to involve 
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40

complicated and difficult issues and, therefore, each such Party irrevocably and unconditionally waives any right it may have to a trial by jury in respect of any legal action arising out of or relating to this Agreement, or the transactions contemplated hereby.
Section 17.20 Counterparts. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together is deemed to be one and the same agreement. Notwithstanding anything to the contrary herein, a signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission is deemed to have the same legal effect as delivery of an original signed copy of this Agreement.
Section 17.21 Force Majeure. Any delay or failure of Seller to perform its obligations under this Agreement will be excused to the extent that the delay or failure was caused directly by an event beyond Seller's control, without its fault or negligence and that by its nature could not have been foreseen by Seller or, if it could have been foreseen, was unavoidable (which events may include natural disasters, embargoes, explosions, riots, wars or acts of terrorism) (each, a "Force Majeure Event").
Section 17.22 No Public Announcements or Trademark Use. Neither Party, nor any of its Representatives shall (orally or in writing) publicly disclose, issue any press release or make any other public statement, or otherwise communicate with the media, concerning the existence of this Agreement or the subject matter hereof, without the prior written approval of the other Party, except if and to the extent that such Party (based upon the reasonable advice of counsel) is required to make any public disclosure or filing regarding the subject matter of this Agreement:
		(a)
	by applicable Law;

		(b)
	under any rules or regulations of any stock exchange of which the securities of such Party or any of its Affiliates are listed or traded; or

		(c)
	in connection with enforcing its rights under this Agreement.

Section 17.23 Language. The parties have required that this Agreement and all documents and notices resulting from it be drawn up in English. Les parties aux présents ont exigés que la présente convention ainsi que tous les documents et avis qui s’y rattachent ou qui en découleront soient rédigés en anglais.
Section 17.24 Capacity. Seller warrants that its overall equipment (shared and specific) and plant capacity are adequate to meet Buyer’s needs, subject to agreed maximum quantities.
Section 17.25 Subcontractors. Seller is responsible for all sub-tier providers of goods or services.  Seller must maintain adequate development, validation, launch, and ongoing supervision to assure all Goods provided to Buyer conform to all specifications, standards, drawings, samples and descriptions under the Purchase Order.
Section 17.26 Product Marketing. Seller will mark the Goods and any packaging in accordance with Buyer’s Specifications.  Seller will not affix any trademarks or trade names to the Goods except as directed by Buyer or as required by applicable law or regulation.
​

41

Section 17.27 US C-TPAT (U.S. Customs Service’s Customs Trade Partnership Against Terrorism. For Seller’s Goods to be imported in the United States, Seller shall accept, implement and comply with all applicable recommendations or requirements of the United States Customs Service’s Customs Trade Partnership Against Terrorism (“C-TPAT”) initiative (http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/).  At Buyer’s or the Customs Service’s request, Seller shall certify in writing its acceptance, implementation and compliance with the C-TPAT and any accompanying recommendation and guidelines.  Seller shall indemnify and hold Buyer harmless from and against any liability, claims, demands or expenses (including attorney’s or other professional fees) arising from or relating to Seller’s not accepting, implementing or complying with C-TPAT.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first set forth above.
​
	​

	​

	​
	LINAMAR CORPORATION

	​
	​

	​
	​

	​
	By  

	​
	Name: Sean Congdon 

	​
	Title: Group President Linamar Americas

	​
	​

	​
	VISION MARINE TECHNOLOGIES.

	​
	​

	​
	​

	​
	By  

	​
	Name: Steven Barrenechea

	​
	Title: Director

​
​

42

SCHEDULE 1
GOODS
Commercial details regarding Products and unit pricing to be determined by the Parties after the Execution of this Agreement. When agreed in writing, such details will be incorporated by reference into this Agreement as Schedule 1.
​

43

SCHEDULE 2
SPECIFICATIONS
Engineering and specification details regarding Products to be determined by the Parties after the Execution of this Agreement. When agreed in writing, such details will be incorporated by reference into this Agreement as Schedule 2.

44

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