Document:

DOW JONES & COMPANY, INC. SEPARATION PLAN FOR SENIOR MANAGEMENT

 

1. Purpose of the Plan and Eligibility: 

 

(a)  This Separation Plan for Senior Management provides benefits to eligible executives in the event that their employment with the Company (as defined below) is to be terminated under a variety of circumstances.  The purpose of the Plan is to assure eligible executives that they will be dealt with fairly in such circumstances in order to encourage such executives to remain in the employ of the Company and to devote their full attention and energies to its best interests.  For purposes of the Plan, the “Company” means Dow Jones & Company, Inc. (“Dow Jones”) and any of the direct or indirect subsidiaries of Dow Jones in which Dow Jones holds, directly or indirectly, a greater than 50% interest. 

(b)  Effective as of June 4, 2007 (the “Amendment Date”), all employees of the Company in salary grades 1 through 12 (each, an “eligible executive”) shall be entitled to participate in the Plan as in effect on and after the Amendment Date; provided, however, that any person who is in salary grades 8 through 12 shall only be entitled to participate in the Plan with respect to terminations of employment arising from events occurring upon or following a Change in Control and prior to the second anniversary of a Change in Control (as hereinafter defined); and provided, further, that, notwithstanding the last sentence of this paragraph (b), any person who was an employee of
the Company in salary grades 8 or 9 on September 14, 2004, and who has remained in the continuous employ of the Company from such date through the Amendment Date (a “grandfathered employee”) shall be entitled to the benefits provided hereunder to persons in salary grade 7 and shall be treated for all purposes of the Plan (including without limitation under Section 4 hereof) as an employee in salary grade 7.  The terms of the Plan as in effect on and after the Amendment Date shall apply only to those persons who are active employees of the Company at any time on or after the Amendment Date and not to any other persons, it being understood that a person for whom a notice of intent is delivered prior to the Amendment Date, or who is otherwise in pay status under any other separation pay plan of the Company prior to the Amendment Date, shall not be considered, solely by reason of such circumstances, to be actively employed for purposes of the Plan on or after the Amendment Date.
 Notwithstanding anything in this paragraph 1(b) to the contrary, the terms of the Plan shall be subject to amendment, and the Plan shall be subject to termination, in accordance with Section 14 hereof.  The eligibility of an eligible executive to benefits under the Plan, and the amount and type of benefits to be paid, shall be based on such eligible executive’s salary grade immediately prior to the delivery of a notice of intent, as provided in Section 2 below, except that in the case of Constructive Termination pursuant to Section 4(iv), eligibility, amount and type of benefits shall be based on such eligible executive’s salary grade immediately prior to the reduction giving rise to Constructive Termination.  

 

2. Notice of Intent to Terminate: If the Company intends to terminate the employment of any eligible executive for any reason other than for cause (as hereinafter defined), or if an eligible executive intends to terminate his or her employment with the Company because of constructive termination (as hereinafter defined), then the Company or such eligible executive, as the case 

 

	
             
 	
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may be, shall deliver to the other a written notice to that effect (a "notice of intent"). 

 

3. Definition of "Cause": An eligible executive shall be deemed to be terminated for "cause" if he or she is to be terminated because he or she (i) has been convicted of, or has pleaded guilty to, a felony, (ii) is abusing alcohol or narcotics, (iii) has committed an act of fraud, material dishonesty or gross misconduct in connection with the Company's business (including, without limitation, an act that constitutes a material violation of the Company's Code of Conduct), or (iv) has willfully and repeatedly refused to perform his or her duties after reasonable demand for such performance has been made by the Company. 

 

4. Definition of "Constructive Termination": An eligible executive may deliver a notice of intent to terminate because of "constructive termination" if, without his or her prior consent, (i) such executive's position or duties are substantially reduced, (ii) such executive's base salary, target bonus opportunity or incentive compensation opportunity is materially reduced, (iii) other employee benefits afforded to such executive are materially reduced, (iv) such executive’s salary grade is reduced below grade 12 in the case of executives in salary grades 8 through 12, below grade 7 in the case of executives in salary grades 5 through 7 and below grade 4 in the case of executives in salary grades 1 through 4, or (v) this Plan is terminated or amended in any material respect. 

 

Notwithstanding the foregoing, no reduction in base salary, target bonus opportunity or incentive compensation opportunity, or other employee benefits, shall be deemed to constitute constructive termination if such reduction is made in conjunction with similar reductions generally applicable to all eligible executives. In addition, a reduction in salary grade level shall not be deemed to constitute constructive termination pursuant to clause (iv) above if, concurrently with such reduction, the Company agrees that such reduction will be disregarded for purposes of this Plan (it being understood that no such reduction may be made for a grandfathered employee). A notice of intent to terminate because of constructive termination must be given by the executive in question within six (6) months after the occurrence of the event giving rise to the right to give such notice of intent. 

 

5. Exclusive Separation Plan for Eligible Executives; Change in Control: Eligible executives whose service with the Company is to be terminated as described in Section 2 and who execute and deliver the non-competition agreement, waivers and releases described in Section 6 shall be entitled to the greater of (but not to both of) (x) the benefits provided under the Plan or (y) the benefits provided under any other similar severance or separation plan or arrangement of the Company, determined based on the present value of the benefits provided under each of the Plan and such other similar severance or separation plan or arrangement as of the last day of the month in which notice of termination is delivered.  Notwithstanding anything in this paragraph to the contrary, the provisions herein are intended to supplement, and not supersede or substitute for, the provisions (i) in any plan or award agreement relating to
equity-based compensation awards (including, without limitation, stock options, contingent stock rights and restricted stock) and (ii) of the Company’s Change in Control Excise Tax Policy, such that eligible executives shall be entitled to the benefits provided under this Plan and in such other plans, agreements or policy, and in the case of duplication to the more favorable of such duplicative provisions.

 

 

	
             
 	
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This Plan is not intended to apply in the case of terminations of employment by eligible executives because of death, disability or voluntary retirement or resignation, except as provided in the case of death or disability of an executive during the period he or she is receiving payments pursuant to Section 8, and except as provided in the case of “constructive termination.”  For purposes of the Plan, a “Change in Control” shall mean:

(a)         Any acquisition or series of acquisitions during any twelve (12) month period after which any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than any Bancroft Person (as defined below)) is the “Beneficial Owner” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of the combined voting power of the outstanding voting securities of Dow Jones; provided, however, that:

	
             
 	
            (i)
 	
            the acquisition of Beneficial Ownership by a Person by reason of such Person’s having entered into a voting, tender or option agreement with Bancroft Persons approved by the Board of Directors of Dow Jones for purposes of Section 203 of the Delaware General Corporation Law in connection with Dow Jones’s entering into a definitive agreement for a Merger (as defined below) shall not by reason of this clause (a) constitute a Change in Control, provided, further that whether the consummation of any such Merger, the applicable tender offer or the exercise of such option  would constitute a Change in Control shall be determined without regard for the exception in this sub-clause(i), and 
 
	
         
	
        (ii)
	
        a Change in Control that would otherwise occur pursuant to this clause (a) shall be deemed to not have occurred pursuant to this clause (a) so long as Bancroft Persons have Beneficial Ownership, directly or indirectly, of fifty percent (50%) or more of the combined voting power of the outstanding voting securities of Dow Jones; or

(b)          The consummation of a merger, consolidation or reorganization with, into or of Dow Jones (each, “Merger”), unless immediately following the Merger, Bancroft Persons have Beneficial Ownership, directly or indirectly, of fifty percent (50%) or more of the combined voting power of the outstanding voting securities of (x) the corporation or other entity resulting from such Merger (the “Surviving Entity”), if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another corporation (a “Parent Entity”), or (y) if there is one or more Parent Entities, the ultimate Parent Entity.

A “Bancroft Person” means any Person who is, or is controlled by, Bancroft Family Members, trustees of Bancroft Trusts (solely in their capacity as trustees), Bancroft Charitable Organizations or Bancroft Entities, each as defined in the By-laws of the Company as in effect as of the date hereof. 

 

6. Non-Competition Agreement; Waivers and Releases: As promptly as possible, the executive in question and the Company shall execute and deliver (a) an agreement pursuant to which such executive agrees not to compete with the Company for the period during, or with respect to which, such executive has received or is entitled to receive payments pursuant to Section 8, and 

 

	
             
 	
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(b) customary mutual waivers and releases. Such agreement, waivers and releases shall be in such form as the Company may reasonably specify; may require the executive to take such steps as the Company may reasonably require to insure an orderly transition of the executive's duties (including the execution and delivery by the executive of written resignations from such offices, directorships and other positions as the Company may require); and shall provide that the Company may cease payments under Section 8 in the event of any material breach by the executive of the confidentiality or non-competition covenants contained in such agreement. 

 

7.  Payment of Salary and Bonus/Sales Incentive for the Period prior to delivery of a Notice of Intent:  The Company shall pay the affected executive's base salary in accordance with the Company's normal payroll practices through the end of the month during which a notice of intent is delivered hereunder.  In addition, the Company shall pay the executive promptly after the end of the year in which such notice of intent is delivered:

 

(a) a pro rata portion of the annual bonus that the executive would have received had he or she continued to perform duties for the entire year, pro rated through the end of the month in which a notice of intent is delivered hereunder.  In the event of a notice of intent for a termination of employment arising from events occurring upon or following a Change in Control and prior to the second anniversary of a Change in Control, then the immediately preceding sentence shall not apply and, in lieu thereof, in addition to the base salary provided for in the first sentence of this Section 7, the Company shall pay the executive promptly after the end of the year in which such notice of intent is delivered an amount determined as follows:

 

(x) if the notice of intent is delivered in 2007, a pro rata portion of the annual bonus that the executive would have received had he or she continued to perform duties for the entire year, determined as described in the Company’s 2007 Annual Incentive Plan Highlights Including Supplemental Provisions Adopted on June 4, 2007; and

(y) if notice of intent is delivered in any year after 2007, a pro rata portion of the target annual bonus that the executive would have received had he or she continued to perform duties for the entire year, pro rated through the end of the month in which a notice of intent is delivered hereunder.

 

(b)  (i) if the eligible executive’s employment is terminated in 2007, a pro rata portion of the annual sales incentive compensation that the executive would have received had he or she continued to perform duties for the entire year, determined based on actual sales performance for the year as described in the applicable sales incentive compensation plan of the Company and pro rated through the end of the month in which a notice of intent is delivered hereunder (it being understood that such actual performance shall be determined, with respect to the portion of the year following termination of such eligible executive’s employment, on a basis that preserves the economic value of the arrangement to such eligible executive) or (ii) if the eligible executive’s employment is terminated in a year after 2007, a pro rata portion of the eligible executive’s target annual sales
incentive compensation for the year in which such termination occurs, pro rated through the end of the month in which a notice of intent is delivered hereunder.

8. Payment of Salary and Target Bonus during the Period following delivery of a Notice of 

 

	
             
 	
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Intent: Provided that the affected executive has executed and delivered the non-competition agreement, waivers and releases described in Section 6, the Company shall:

 

(x) if the notice of intent is delivered prior to the occurrence of a Change in Control or if it relates to events occurring more than two years following the occurrence of a Change in Control, (A) continue to pay the executive his or her regular salary in accordance with the Company’s normal payroll practices commencing with the regular salary payment next following the month in which a notice of intent is delivered and continuing (i) through the 24th month following such month if the executive is in salary grade 1, 2, 3 or 4, or (ii) through the 18th month following such month if the executive is in salary grade 5, 6 or 7; and (B) pay the executive monthly during such 18 or 24 month period, as the case may be, an amount equal to one-twelfth of the amount of his or her annual “target” bonus and/or, as applicable, annual “target” sales incentive
compensation that was in effect for the year in which the notice of intent was delivered (it being understood and agreed that if an executive becomes disabled or dies during the period he or she is receiving payments hereunder, such payments will continue to be made thereafter for the balance of the 18 or 24 month period, as the case may be, to such executive (in the case of disability) or such executive’s estate or designated beneficiary (in the case of death)); and 

(y) if the notice of intent is delivered upon or after the occurrence of a Change in Control and relates to events occurring not more than two years following a Change in Control, (A) for eligible executives described in clause (x) above, pay the executive, in a lump sum in cash not later than 30 days after the delivery of such notice of intent, an amount equal to the sum of all of the amounts to which the eligible executive would be entitled under the preceding clause (x) and (B) for eligible executives in salary grades 8, 9, 10, 11 or 12, pay the executive, in a lump sum in cash not later than 30 days after the delivery of such notice of intent, an amount equal to the sum of all of the amounts to which the eligible executive would have been entitled under the preceding clause (x) had such clause (x) covered the executive, substituting 12 months for 18 or 24 months. 

 

9. Continuation of Certain Employee Benefits: During the period in which, or with respect to which, an executive is entitled to receive or has received payments of salary and target bonus pursuant to Section 8, such executive shall continue as an employee of the Company for purposes of, and shall continue to participate in, the following employee benefit plans and programs (including any successors to such plans and programs): the profit-sharing retirement and supplementary benefit plans; the health and dental care plans; and the executive death and group life, disability and accident insurance plans, provided that coverage under any health, dental or other insurance plan will cease if the executive becomes covered by another such plan. Coverage for the executive in question under the health and dental care plans and the executive death and group life and disability insurance plans will be maintained at the
levels and on the same terms and conditions in effect for such executive immediately prior to the delivery of the notice of intent. The Company’s contributions on behalf of the executive to 401(k) savings, money purchase, deferred compensation and supplementary benefit plans, and any successors thereto, will be based on the amounts paid to such executive during, or with respect to, the periods specified pursuant to Sections 7 and 8; provided, that, in the circumstances described in Section 8(y) hereof, in lieu of the continuation of 401(k) savings, money purchase, deferred 

 

	
             
 	
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compensation and supplementary benefit plan benefits provided in this Section 9, the Company shall credit the eligible executive, as of and as soon as practical after the delivery of the notice of intent, with a lump sum amount of deferred compensation benefits equal to the sum or the amount of benefits that would have been provided pursuant to this Section 9 but for this proviso. 

 

  10. Stock Options; Contingent Stock Rights: 

 

(a) Stock Options. Except as otherwise provided in the case of executives who qualify for retirement as provided in Section 12: 

 

(i) vested stock options held by an executive who is the subject of a notice of intent hereunder shall remain exercisable in accordance with their terms until the earlier of (x) the expiration of the option and (y)the last day (the “termination date”) of the month during which the final payment of salary and target bonus under Section 8(x) is due and payable, or of the last day of the last month with respect to which such payments were required to be made under Section 8(y); 

 

(ii) unvested stock options held by such an executive shall continue to vest, and once vested shall be exercisable, in accordance with their terms until the termination date; and 

 

(iii) all vested and unvested stock options held by such an executive will terminate on the termination date. 

 

(a) Contingent Stock Rights. An executive who is the subject of a notice of intent hereunder shall receive a pro rated final award with respect to each of his or her outstanding grants of contingent stock rights under the Long Term Incentive Plan (or any predecessor or successor thereto) equal to (i) the maximum number of shares of common stock covered by such grant, multiplied by (ii) a fraction the numerator of which is the aggregate number of shares granted as final awards to all participants under the Long Term Incentive Plan (excluding the executive in question) with respect to the performance period covered by such grant, and the denominator of which is the aggregate of the maximum number of shares covered by all grants held by all such participants (excluding such executive) with respect to such performance period, multiplied further by (iii) a fraction the numerator of which is the number of months
from the commencement of the performance period in question through and including the termination date as defined in Section 10(a), and the denominator of which is the total number of months in such performance period. Such final award shall be paid to the executive in accordance with the Long Term Incentive Plan after the end of the performance period in question at the same time as final awards are delivered to the other participants in the Long Term Incentive Plan. 

 

(b) No further awards. An executive who is the subject of a notice of intent hereunder shall not be eligible thereafter to receive new stock option grants or new contingent stock rights awards under the Long Term Incentive Plan or otherwise. 

 

11. Financial Counseling and Outplacement Services: An executive who is the subject of a notice of intent hereunder shall be entitled to receive financial counseling services during the first 12 months that he or she is receiving payments pursuant to Section 8 or during the first 12 months 

 

	
             
 	
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after he or she becomes entitled to a lump sum payment pursuant to Section 8, as applicable; the cost of such services shall be paid by the Company up to such reasonable amount as the Company may specify. In addition, such an executive shall be entitled to receive outplacement services at a level commensurate with the executive's position; the cost of such services shall be paid by the Company up to an amount equal to 20% of such executive's annual base salary in effect on the date the notice intent is delivered. 

 

12. Termination of Employment; Retiree Status: An executive who is the subject of a notice of intent hereunder shall cease to be an employee of the Company on the termination date as defined in Section 10(a). If such executive is 55 years of age or older on such date, and if he or she has accumulated 10 or more years of service with Dow Jones as of such date (including in computing such years of service the 12, 18 or 24 months, as the case may be, that the executive received payments or with respect to which the executive was entitled to payment under Section 8), then such executive's employment shall be deemed to have been terminated on the termination date because of retirement, and such executive shall thereupon be deemed to be a retiree for purposes of the Company's profit sharing and other retirement plans; health, life, executive death and disability insurance plans; stock option, deferred compensation
and supplementary benefit plans; any predecessors or successors to such plans; and all other plans and programs then or thereafter in effect for the Company's retirees and for which such executive qualifies. 

 

Without limiting the generality of the foregoing: 

 

(a) Such executive shall participate as a retiree in the retiree health plan, and the 12, 18 or 24 months, as the case may be, that the executive received payments or with respect to which the executive was entitled to payment under Section 8 shall be credited to such executive's years of service for purposes of determining his or her benefit levels under such plan. 

 

(b) All vested stock options held by such executive shall continue to be exercisable in accordance with their terms until the expiration dates set forth in the respective stock option agreements. In addition, all unvested stock options held by such executive shall continue to vest and, once vested, shall similarly be exercisable in accordance with their terms until the expiration dates set forth in the respective stock option agreements. 

 

13. Claims Procedure: Benefits will be provided as specified in this Plan to each eligible executive who is the subject of a notice of intent hereunder. If such an executive believes that he or she has not been provided with benefits as and when due under this Plan, then such executive may pursue his or her remedies under the claims and appeals procedures set forth in the summary plan description applicable to the Company's health and life insurance plans (which claims and appeals procedures are hereby incorporated herein by reference); provided, however, that requests for reconsideration under this Plan must be filed with the Company's Vice President/Employee Relations or General Counsel, or such other officer as the Company's Board of Directors may designate, as the executive may elect, within sixty (60) days after the date that he or she should have received such benefits. 

 

14. Termination and Amendments; Miscellaneous: 

 

	
             
 	
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(a) This Plan may be terminated or amended by the Board of Directors of the Company at any time or from time to time, provided that no such termination or amendment shall terminate, amend or otherwise affect the obligations of the Company hereunder to any executive as to whom a notice of intent has theretofore been delivered, or to any executive who elects to deliver a notice of intent (as provided in Section 4) because of such termination or amendment of this Plan; it being the intent of the Company that this Plan will remain in full force and effect with respect to, and for the benefit of, such executives notwithstanding its termination or amendment. 

 

(b) Except as otherwise provided herein, the provisions of this Plan, and any payment provided for hereunder shall not reduce any amounts otherwise payable, or in any way diminish an executive's existing rights, or rights which would accrue solely as a result of the passage of time, under any benefit plan, employment agreement or other contract, plan or arrangement. 

 

(c) The Company may withhold from any amounts payable under this Plan (i) such federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation and (ii) such amounts, if any, as such executive owes the Company. 

 

(d) The failure to insist upon strict compliance with any provision hereof, or the failure to assert any right hereunder, shall not be deemed to be a waiver of such provision or right or of any other provision or right under this Plan. 

 

(e) All payments to be made hereunder shall be paid from the Company's general funds and no special or separate fund shall be established and no segregation of assets shall be made to assure the payment of such amounts. Nothing contained in this Plan shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any eligible executive or any other person with respect to amounts to be paid hereunder. 

 

(f) If the Company determines that it is impossible or impractical to provide benefits hereunder pursuant to plans or programs maintained for its employees or executives generally, the Company shall provide substantially equivalent benefits to affected executives through other means. For example, if for any reason the Company determines that it is impossible or impractical to make contributions on behalf of eligible executives to any tax qualified contributory retirement plan, the Company will credit the amount it would otherwise have contributed to such plan to a deferred compensation or similar account for the benefit of such executive. Similarly, if for any reason the Company determines that it is impossible or impractical to provide life, health or other insurance coverage to an executive under existing employee, executive or other group plans, the Company will purchase or otherwise provide such coverage
separately for any affected executive. If any such arrangement results in the recognition of taxable income by an executive, the Company will reimburse such executive for all taxes paid on such income and for all taxes paid on all reimbursements of taxes hereunder. 

 

15.  Section 409A Compliance:

 

(a)          In the event that the Plan or any benefit paid or due to any eligible executive hereunder is deemed by the Committee to be subject to Section 409A of the Code and not to 

 

 

	
             
 	
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comply with the requirements of such Section, the Committee shall, notwithstanding anything herein to the contrary but subject to Section 14(b), have the authority to take such actions as it determines to comply with Section 409A of the Code. In any such event, the Committee shall use reasonable efforts not to reduce the economic value of any benefits due to the eligible executive hereunder but shall not be obligated to cause the Company to incur any cost in furtherance of that objective. No action, or failure to act, pursuant to this paragraph 14(a) shall subject the Committee or the Company to any claim, liability or expense, and neither the Committee nor the Company shall have any obligation to indemnify or otherwise protect any eligible executive from the obligation to pay any taxes pursuant to Section 409A of the Code.

(b)          Notwithstanding any provision to the contrary in Section 14(a), in the event that the Plan is not amended to comply with Section 409A of the Code prior to a Change in Control, then the Plan shall thereafter be amended in a manner that preserves the economic value of the compensation payable hereunder to eligible executives (including, without limitation, the payment of interest at a rate equal to 120% of the “applicable federal rate” determined under Section 1274(d) of the Code as in effect on the date on which any benefit would have been paid to a Participant but for this Section 14 with respect to a debt instrument with a term equal to the period during which payment of such benefit is delayed pursuant to this Section 14) and that preserves, to the greatest extent possible, the
form and time at which such compensation is paid.  Following a Change in Control and pending such amendment, this Plan shall be operated in accordance with the standard described in the preceding sentence.  

 

 

 

	
             
 	
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IMAX CORPORATION

EXHIBIT 4.1

SHAREHOLDERS’ AGREEMENT

          SHAREHOLDERS’ AGREEMENT, dated as of January 3, 1994, by and among WGIM Acquisition
Corporation, a corporation organized under the laws of Canada (the “Company”), the persons
listed as “Selling Shareholders” on the signature pages hereof (collectively, the “Selling
Shareholders”), Wasserstein Perella Partners, L.P., a Delaware limited partnership, Wasserstein
Perella Offshore Partners, L.P., a Delaware limited partnership (the two immediately preceding
parties referred to herein collectively as “WP”), Bradley J. Wechsler (“Wechsler”),
Richard L. Gelfond (“Gelfond” and, together with Wechsler, the “GW Shareholders”)
and Douglas Trumbull (“Trumbull”); the Selling Shareholders and Trumbull being collectively
referred to herein as the “Original Shareholders”; the Selling Shareholders, the GW
Shareholders, Trumbull and WP sometimes being collectively referred to herein as the
“Shareholders”.

W I T N E S S E T H:

          WHEREAS, the Company has entered into a Share Purchase Agreement dated as of the date hereof
(the “Acquisition Agreement”) with the Selling Shareholders pursuant to which the Company
has agreed, subject to the terms and conditions thereof, to purchase all of the outstanding shares
of common stock of Imax Corporation, a corporation organized under the laws of Canada
(“Imax”) (the “Acquisition”) from the Selling Shareholders;

          WHEREAS, upon the Closing (as defined in the Acquisition Agreement), each of Gelfond and
Wechsler will be the registered holder and beneficial owner of an aggregate of 323,728 common
shares of the Company (the “Common Stock”) and warrants (the “GW Warrants”) to
purchase 143,879 shares of Common Stock;

          WHEREAS, upon the Closing, WP will be the registered holder and beneficial owner of 240,000
Class A Preferred Shares (“Class A Preferred Shares”) of the Company and warrants
(“Warrants”) to purchase 3,107,786 shares of Common Stock;

          WHEREAS, upon the Closing, each Selling Shareholder will be the registered holder and
beneficial owner of such number of Class B Convertible Preferred Shares (“Class B

 

 

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Preferred
Shares”) of the Company and of such number of
Class C Preferred Shares (“Class C Preferred Shares” which, together with Class A
Preferred Shares and Class D Preferred Shares, are referred to collectively herein as the
“Preferred Stock” of the Company), in each case set forth opposite such shareholder’s name
on Schedule A hereto;

          WHEREAS, Trumbull has entered into an Agreement (the “Agreement”) to sell all the
shares of the Trumbull Company, Inc., a Delaware corporation (“TCI”) to the Company in
return for 60,000 Class D Preferred Shares (“Class D Preferred Shares”) of the Company and
employee stock options (“Options”) to purchase 129,491 shares of Common Stock.

          WHEREAS, the Shareholders desire to enter into an agreement to provide for certain
restrictions on the transferability of Shares (as hereinafter defined) held by the Original
Shareholders, pursuant to which the Original Shareholders are granted registration rights with
respect to their Shares in the manner and for the purposes specified herein, and to provide for
certain other matters, all as set forth herein.

          NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good
and valuable consideration, the receipt and legal sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

          Section 1. Definitions

          The terms set forth below shall have following definitions:

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

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

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

          “Advice” has the meaning set forth in Section 4(b) hereof.

          “Affiliate” of any Person means a Person that directly, or indirectly through one or
more intermediaries, controls, is controlled by or is under common control with such Person. A
Person shall be deemed to “control” (including the correlative meanings, the terms “controlling”,
“controlled by”, and “under common control with”) another Person if the

 

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controlling Person
possesses, directly or indirectly, the
power to direct or cause the direction of the management or policies, of the controlled
Person, whether through ownership of voting securities, by contract or otherwise.

          “Class A Preferred Shares” has the meaning set forth in the Recitals hereto.

          “Class B Preferred Shares” has the meaning set forth in the Recitals hereto.

          “Class C Preferred Shares” has the meaning set forth in the Recitals hereto.

          “Class D Preferred Shares” has the meaning set forth in the Recitals hereto.

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

          “Come Along Notice” has the meaning set forth in Section 2(e) hereof.

          “Commission” has the meaning set forth in Section 4(b) hereof.

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

          “Company” has the meaning set forth in the introductory paragraph hereto;
provided that, after the effectiveness of the amalgamation referred to in Section 3, all
references herein to the “Company” shall refer to the new corporation formed by such amalgamation.

          “Exchange Act” has the meaning set forth in Section 4(e) hereof.

          “GW Warrants” has the meaning set forth in the Recitals hereto.

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

          “Inspectors” has the meaning set forth in Section 4(b) hereof.

          “NASD” has the meaning set forth in Section 4(b) hereof.

 

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

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

          “Piggyback Registration” has the meaning set forth in Section 4(a) hereof.

          “Preferred Stock” has the meaning set forth in the Recitals hereto.

          “Proposed Registration” has the meaning set forth in
Section 4(a) hereof.

          “Prospective Transferee” has the meaning set forth in Section 2(d) hereof.

          “Records” has the meaning set forth in Section 4(b) hereof.

          “Registration Expenses” has the meaning set forth in Section 4(d) hereof.

          “Registrable Securities” means the shares of Common Stock issuable upon conversion of
the Class B Preferred Shares, but with respect to any such share, only so long as such share
continues to be a Restricted Security.

          “Restricted Security” means a share of Common Stock or a share of Preferred Stock (or
a share of Common Stock issuable upon conversion of Preferred Stock) until such time as such share
(i) has been effectively registered under the Act and disposed of in accordance with the
registration statement covering it, (ii) has been sold publicly pursuant to Rule 144 (or any
similar provision then in force) under the Act, or (iii) has been otherwise transferred and the
Company has delivered a new certificate or other evidence of ownership for it not subject to any
legal or other restriction and not being a legend restricting its transfer without registration or
an exemption therefrom.

          “Second Anniversary” means the second anniversary of the Closing.

          “Shares” means the Preferred Stock, the Warrants, the GW Warrants, and the Common
Stock, including the Common Stock

 

5

issuable upon conversion of the Class B Preferred Shares and upon exercise of the Warrants, as
the context requires.

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

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

          “Take-Along Notice” has the meaning set forth in Section 2(d) hereof.

          “transfer” has the meaning set forth in Section 2(a) hereof.

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

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

          Section 2. Restrictions on Transfers of Shares and Rights of Co-Sale; Financial
Statements.

          (a) Restrictions on Transfers of Shares. No transfer, sale, assignment, pledge or
other hypothecation or disposition, voluntary or involuntary (each, a “transfer”), of
Shares held by an Original Shareholder shall be valid unless the terms and conditions of this
Agreement shall have been complied with. Any attempted transfer in violation of the terms and
conditions of this Agreement shall be ab initio void.

          (b) Legends. (i) The Company shall be entitled to affix to each certificate
evidencing Shares held by an Original Shareholder a legend in substantially the following form:

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

 

6

THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON
TRANSFER AS SET
FORTH IN A SHAREHOLDERS’ AGREEMENT, DATED AS OF JANUARY 3, 1994, A COPY OF WHICH IS
ON FILE AT THE PRINCIPAL EXECUTIVE OFFICES OF THE ISSUER. NO REGISTRATION OF
TRANSFER OF SUCH SECURITIES WILL BE MADE ON THE BOOKS OF THE ISSUER UNLESS AND UNTIL
SUCH RESTRICTIONS SHALL HAVE BEEN COMPLIED WITH.”

          (ii) In the event that any Shares held by an Original Shareholder shall cease to be
Restricted Securities, the Company shall, upon the written request of the holder thereof, issue to
such holder a new certificate evidencing such Shares without the first paragraph of the legend
required by Section 2(b)(i) endorsed thereon. In the event that any Shares shall cease to be
subject to the restrictions on transfer set forth in this Agreement, the Company shall, upon the
written request of the holder thereof, issue to such holder a new certificate evidencing such
Shares without the second paragraph of the legend required by Section 2(b)(i).

          (c) Certain Restrictions on Transfer. Each Original Shareholder agrees that he will
not, directly or indirectly, make or solicit any transfer of any Share held by such Shareholder
other than (i) any transfer to a person (A) by will or the laws of descent and distribution or (B)
by transfer of any kind for tax or estate planning purposes, provided, however,
that such transferee is (I) the issue or spouse of an Original Shareholder, (II) a company
controlled by any combination of an Original Shareholder, the issue or the spouse of an Original
Shareholder (provided that such company continues to be so controlled), or (III) any trust
established for the benefit of an Original Shareholder, the issue or the spouse of an Original
Shareholder, or any combination thereof; (ii) any transfer that is made in compliance with the
procedures, and subject to the limitations, set forth in Sections 2(d) and 2(e); (iii) any transfer
pursuant to an effective registration statement under the Act or under Rule 144 under the Act (or
any similar or successor rule). Notwithstanding the foregoing, except as otherwise expressly
provided in this Agreement, all transfers permitted by the foregoing clause (i) shall be subject
to, and shall not be made other than in compliance with, the provisions of Section 2(f).

          (d) Take-Along Right. If any of WP, Gelfond or Wechsler, as the case may be, proposes
to sell or transfer any of their Shares (other than Preferred Stock) in one or more related
transactions which will result in a sale or transfer

 

7

by WP, Gelfond or Wechsler, as the case may be, of a majority of the aggregate number of
Shares held by such parties, then WP, Gelfond or Wechsler, as the case may be, shall
promptly give written notice thereof (a “Take-Along Notice”) to the Original Shareholders
at least 30 days prior to the closing of such sale or transfer. The Take-Along Notice shall
specify the precise number of Shares or percentage of holdings to be sold or transferred and shall
describe in reasonable detail the proposed sale or transfer including, without limitation, the name
and address of the prospective purchaser or transferee of the Shares (such purchaser or transferee
and any other purchaser or transferee of the Shares permitted under this Agreement being a
“Prospective Transferee”), the number of and type of the Shares to be sold or transferred,
the proposed amount and form of the conditions of payment thereof offered by the Prospective
Transferee, that the Prospective Transferee has been informed of the take-along right in this
Section 2(d) and has agreed to purchase Shares in accordance with the terms hereof and any other
material terms or conditions of the sale or transfer. Each Original Shareholder shall have the
right, exercisable upon written notice (the “Acceptance Notice”) delivered to WP, Gelfond
or Wechsler, as the case may be, within 15 days after such receipt of the Take-Along Notice, to
participate in such sale or transfer on the same terms and conditions as set forth in the
Take-Along Notice. The Acceptance Notice shall state that such Original Shareholder wishes to
transfer Shares to the Prospective Transferee on the terms described in the Take-Along Notice, and
shall state the number of Shares thereof that such Original Shareholder wishes to include in the
proposed transfer. If such Original Shareholder has delivered a timely Acceptance Notice it shall
have the right to sell a number of Shares equal to the product obtained by multiplying (i) the
aggregate number of Shares covered by the Take-Along Notice by (ii) a fraction the numerator of
which is the number of Shares owned by the Original Shareholders at the time of the sale or
transfer and the denominator of which is the number of Shares owned by WP, the GW Shareholders and
the Original Shareholders at the time of such sale or transfer. For purposes of this Section 2(d),
the number of Shares owned by a party shall be the number of shares of Common Stock owned by such
party assuming that such party exercises all of its exchange, conversion and subscription and
similar rights with respect to all securities of the Company.

          (e) Come-Along Right. If any of WP, Gelfond or Wechsler, as the case may be,
determines to transfer all of their Shares in one or more related transactions which will result in
a transfer by WP, Gelfond or Wechsler, as the case may be, of a majority of the aggregate number of
Shares held

 

8

by such parties, and it wishes to require the Original Shareholders to sell their Shares in
such sale, then WP,
Gelfond or Wechsler, as the case may be, shall give written notice thereof (the “Come-Along
Notice”) to the Original Shareholders, at least 20 days prior to such transfer. Such notice
shall describe in reasonable detail the proposed transfer by WP, Gelfond or Wechsler, as the case
may be, including, without limitation, the name and address of the Prospective Transferee, the
number and type of the Shares proposed to be transferred, the proposed amount and form of the
consideration to be paid and the terms and conditions of payment thereof offered by the Prospective
Transferee and any other material terms or conditions of the transfer. Each Original Shareholder
shall be required to sell all of his Shares to such third party or parties concurrently with the
sale by WP, Gelfond or Wechsler, as the case may be, of its Shares, on the terms and conditions
approved by WP, Gelfond or Wechsler, as the case may be, subject to the consideration per Share to
be received by such Original Shareholder being identical to the consideration per Share being
received by WP, Gelfond or Wechsler, as the case may be.

          (f) Transferees to Execute Agreement. Each Original Shareholder agrees that it will
not directly or indirectly make any transfer of any Shares held by such Original Shareholder,
unless, prior to the consummation of any such transfer, the Prospective Transferee (i) executes and
delivers to the Company an agreement, in form and substance satisfactory to the Company, whereby
such Prospective Transferee confirms that, with respect to the Shares that are the subject of such
transfer, it shall be deemed to be an “Original Shareholder” for the purposes of this Agreement and
agrees to be bound by all the terms of this Agreement and (ii) unless the Company otherwise agrees
in writing, delivers to the Company an opinion of counsel, satisfactory in form and substance to
the Company, to the effect that the agreement referred to above that is delivered by such
Prospective Transferee is a legal, valid and binding obligation of such Prospective Transferee
enforceable against such Prospective Transferee in accordance with its terms. Upon the execution
and delivery by such Prospective Transferee of the agreement referred to in clause (i) of the next
preceding sentence and, if required, the delivery of the opinion of counsel referred to in clause
(ii) of the next preceding sentence, such Prospective Transferee shall be deemed an “Original
Shareholder” for the purposes of this Agreement, and shall have the rights and be subject to the
obligations of an Original Shareholder hereunder with respect to the Shares transferred to such
Prospective Transferee. Notwithstanding the foregoing, the provisions of this Section 2(f) shall
not

 

9

apply to transfers of Shares made pursuant to Section 2(c)(ii) or (iii) hereof.

          (g) Financial Statements. The Company will furnish to the Shareholders,
contemporaneously with holders of the Company’s debt securities, audited consolidated financial
statements of the Company, including a balance sheet, income statement, statement of surplus and
statement of changes in financial position, together with notes thereto and setting forth the
corresponding figures of the previous year in comparative form. 

          Section 3. Amalgamation. Each party hereto acknowledges that, immediately following
the Closing, Imax, a wholly-owned subsidiary of the Company, will amalgamate with the Company,
pursuant to which, among other things, all Shares shall be Shares of the corporation continuing
following such amalgamation. Each party hereto agrees to vote all Shares, if any, held by such
party entitled to a vote thereon, in favour of such amalgamation and to cause its respective
directors to vote in favor of such amalgamation. From and after such amalgamation, all references
herein to the “Company” shall refer to the new corporation continuing following such amalgamation.

          Section 4. Registration Rights.

          (a) Piggyback Registration Rights.

          (1) Right to Piggyback. Subject to the last sentence of this paragraph (1), whenever
the Company proposes to register any shares of Common Stock under the Act at any time after the
Second Anniversary, other than (A) a registration statement on Form S-4 or S-8 (or any successor
forms or comparable foreign forms) or filed in connection with an exchange offer or (B) an offering
of securities solely to the Company’s existing shareholders (a “Proposed Registration”),
and the registration form to be used may be used for the registration of the Registrable Securities
(a “Piggyback Registration”), the Company will give prompt written notice to each Original
Shareholder of its intention to effect such a registration and will, subject to Section 4(a)(2)
hereof, include in such Piggyback Registration all Registrable Securities with respect to which the
Company has received written requests for inclusion therein from each Original Shareholder within
15 days after receipt of the Company’s notice, provided that if, at any time after giving
written notice of its intention to register any shares of Common Stock and prior to the effective
date of the registration statement filed in connection with such

 

10

registration, the Company shall determine for any reason not to register or to delay
registration of such shares, the Company may, at its election, give written notice of such
determination to each holder of Registrable Securities and, thereupon, (1) in the case of a
determination not to register, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration, and (2) in the case of delay in registering, shall
be permitted to delay registering any Registrable Securities for the same period as the delay in
registering such other shares. Except as may otherwise be provided in this Agreement, Registrable
Securities with respect to which such
request for registration has been received will be registered by the Company and offered to the
public pursuant to this Section 4 on the same terms and subject to the same conditions applicable
to similar securities of the Company included in the Proposed Registration. No Original
Shareholder will be entitled to include Registrable Securities pursuant to this Section 4(a) (1) in
a registration statement relating to the initial public offering of shares of Common Stock (or
securities exchangeable or exercisable for or convertible into Common Stock, or the Common Stock
underlying such exchangeable or convertible securities).

          If the Company proposes, in conjunction with a Piggyback Registration, to file a prospectus
with any Canadian securities regulatory authority or otherwise to qualify the shares of Common
Stock for distribution in any province of Canada (a “Canadian Offering”), the Original Shareholders
shall be entitled to participate in such Canadian Offering to the same extent and on the same terms
and conditions (before, during and after the Canadian Offering), mutatis mutandis,
as they are entitled to participate in the Piggyback Registration under this Agreement.

          (2) Priority of Piggyback Registrations. If the managing underwriter or underwriters
advise the Company that in its or their opinion the number or type of securities proposed to be
sold in a registration statement exceeds the number or type which can be sold in such offering (a)
at a price reasonably related to the then current market value of such securities, or (b) without
otherwise materially and adversely affecting the entire offering, then the Company will include in
such registration the number or type of Registrable Securities which, in the opinion of such
underwriter or underwriters, can be sold as follows without having the adverse effect referred to
above: (i) first, all the securities that the Company proposed to sell for its own account
or is required to register on behalf of any third party exercising demand registration rights and
(ii) second,

 

11

to the extent that the number of securities described in clause (i) above is less than the
number of securities that the Company has been advised can be sold in such offering without the
adverse effect referred to above, the Registrable Securities which have been requested to be
included in such registration under this Section 4(a) and all shares of Common Stock requested to
be included by third parties exercising rights similar to those granted in this Section 4(a), on a
pro rata basis (which shall be based on the number of shares of Common Stock then owned by each
holder of Registrable
Securities and each such other party, assuming exercise by them of all exchange, conversion,
subscription and similar rights with respect to all securities of the Company).

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

     (1) prepare and file with the Securities and Exchange Commission (the
“Commission”) a registration statement which includes the Registrable Securities and
use all reasonable efforts to cause such registration statement to become effective;

     (2) prepare and file with the Commission such amendments and post-effective amendments
to the registration statement as may be necessary to keep the registration statement
effective for a period of not less than 90 days (or such shorter period which will terminate
when all Registrable Securities covered by such registration statement have been sold or
withdrawn) cause
the prospectus to be supplemented by any required prospectus supplement, and as so
supplemented to be filed pursuant to Rule 424 under the Act; and comply with the provisions
of the Act applicable to it with respect to the disposition of all securities covered by such
registration statement during the applicable period in accordance with intended methods of
disposition by the sellers thereof set forth in such registration statement or supplement to
the prospectus;

     (3) furnish to any holder of Registrable Securities included in such registration
statement and the underwriter or underwriters, if any, without charge, at
least one confirmed copy of the registration statement and any post-effective amendment
thereto, upon request, and such number of copies of the prospectus (including each
preliminary prospectus) and any amendments or supplements thereto, and any documents
incorporated by reference therein, as such holder or underwriter may

 

12

request in order to facilitate the disposition of the Registrable Securities being sold by
such holder (it being understood that the Company consents to the use of the prospectus and
any amendment or supplement thereto by each holder holding Registrable Securities covered by
the registration statement and the underwriter or underwriters, if any, in connection with
the offering and sale of the Registrable Securities covered by the prospectus or any
amendment or supplement thereto);

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

     (5) use all reasonable efforts to cause all Registrable Securities included in such
registration statement to be listed on each securities exchange on which the Common Stock is
then listed, if any;

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

     (7) on or prior to the date on which the registration statement is declared effective,
use all
reasonable efforts to register or qualify, and cooperate with the holders of Registrable
Securities included in such registration statement, the underwriter or underwriters, if any,
and their counsel, in connection with the registration or qualification of the Registrable
Securities covered by the registration statement for

 

13

offer and sale under the securities or blue sky laws of each state and other jurisdiction as
any such holder or underwriter reasonably requests in writing, to use all reasonable efforts
to keep each such registration or qualification effective, including through new filings, or
amendments or renewals, during the period such registration statement is required to be kept
effective and to do any and all other acts or things necessary or advisable to enable the
disposition in all such jurisdictions of the Registrable Securities covered by the applicable
registration statement; provided, that the

Company will not be required to qualify generally to do business in any jurisdiction where it
is not then so qualified or to take any action which would subject it to general service of
process in any such jurisdiction where it is not then so subject;

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

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

     (l0) enter into such customary agreements (including, without limitation, an
underwriting agreement in customary form) and take all such other actions as the holders of a
majority of the Registrable Securities being sold or the underwriters retained by the holders
participating in an underwritten public offering, if any, reasonably request in order to
expedite or facilitate the disposition of such Registrable Securities;

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

 

14

any attorney, accountant or other agent retained by any such seller or underwriter
(collectively, the “Inspectors”) all financial and other records, pertinent corporate
documents and properties of the Company (collectively, the “Records”) as shall be
reasonably necessary to enable the Inspectors to exercise their due diligence responsibility,
and cause the Company’s officers, directors and employees to supply all information
reasonably requested by any such Inspector in connection with such registration statement;
provided that Records which the Company determines, in good faith, to be confidential
and which it notifies the Inspectors are confidential shall not be disclosed to the
Inspectors;

     (12) use all reasonable efforts to obtain a “cold comfort” letter from the Company’s
independent public accountants and an opinion of outside counsel to the Company, each in
customary form and covering matters of
the type customarily covered by “cold comfort” letters or opinions of counsel; and

     (13) cooperate with each seller of Registrable Securities and each underwriter
participating in the disposition of such Registrable Securities and their respective counsel
in connection with any filings required to be made with the National Association of
Securities Dealers, Inc. (the “NASD”).

     Each holder of Registrable Securities, upon receipt of any notice from the Company of
the happening of any event of the kind described in Section 4(b)(4) will forthwith
discontinue disposition of the Registrable Securities until such holder’s receipt of the
copies of the supplemented or amended prospectus contemplated by Section 4(b)(4) or until it
is advised in writing (the “Advice”) by the Company that the use of the prospectus
may be resumed and has received copies of any additional or supplemental filings which are
incorporated by reference in the prospectus, and, if so directed by the Company, such holder
will, or will request the managing underwriter or underwriters, if any, to deliver to the
Company (at the Company’s expense) all copies, other than permanent file copies then in such
holder’s possession, of the prospectus covering such Registrable Securities current at the
time of receipt of such notice. In the

event the Company shall give any such notice, the time periods mentioned in Section 4(b)(2)
shall be extended by the number of days during the period from and including the date of the
giving of such notice to and including

 

15

the date when each seller of Registrable Securities covered by each registration statement
shall have received the copies of the supplemented or amended prospectus contemplated by
Section 4(b)(4) or the Advice.

          (c) Holdback Arrangements.

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

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

 

16

not prevent the conversion or exchange of any securities pursuant to their terms into or
for other securities.

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

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

 

17

     (e) Indemnification; Contribution.

     (1) Indemnification by the Company. The Company agrees to indemnify and hold
harmless each selling holder of Registrable Securities, its officers, directors, agents,
employees, partners and Affiliates and each Person, if any, who controls such selling holder
within the meaning of Section 15 of the Act or Section 20 of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), from and against any and all losses, claims,
damages, liabilities and expenses (including reasonable costs of investigation) arising out
of or based upon any untrue statement or alleged untrue statement of a material fact
contained in any registration statement or prospectus relating to the Registrable Securities
or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or based upon any omission or
alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, except insofar as such losses, claims,
damages, liabilities or expenses arise out of, or are
based upon, any such untrue statement or omission based upon information with respect to such
selling holder furnished in writing to the Company by such selling holder expressly for use
therein. The Company also agrees to indemnify any underwriters of the Registrable
Securities, their officers, directors, agents, employees, partners and Affiliates and each
Person who controls such underwriters on substantially the same basis as that of the
indemnification of the selling holders provided in this Section 4(e).

     (2) Conduct of Indemnification Proceedings. If any action or proceeding
(including any governmental investigation) shall be brought or asserted against any selling
holder (or any of its officers, directors, agents, employees, partners or Affiliates) or any
Person controlling any such selling holder in respect of which indemnity may be sought from
the Company, the Company shall be permitted, unless in the reasonable judgment of such
indemnified party a conflict of interest may exist between such indemnified party and the
Company with respect to such claim, to assume the defense thereof, including the employment
of counsel reasonably satisfactory to such selling holder, and shall assume the
payment of all expenses. Whether or not such defense is assumed by the Company, the Company
shall not be liable for any settlement of any such action or proceeding effected without its
written consent. The Company will

 

18

not consent to entry of any judgment or enter into any settlement which does not include as
an unconditional term thereof the giving by the claimant or plaintiff to such indemnified
party of a release from all liability in respect of such claim or litigation. If the Company
is not entitled to, or elects not to, assume the defense of a claim, it will not be obligated
to pay the fees and expenses of more than one counsel with respect to such claim, unless in
the reasonable judgment of any indemnified party a conflict of interest may exist between
such indemnified party and any other of such indemnified parties with respect to such claim,
in which event the Company shall be obligated to pay the fees and expenses of such additional
counsel or counsels. Any selling holder entitled to indemnification hereunder agrees to give
prompt written notice to the Company after
the receipt by such selling holder of any written notice of the commencement of any action,
suit, proceeding or investigation or threat thereof made in writing for which such selling
holder will claim indemnification or contribution pursuant to this Agreement.

     (3) Indemnification by Holders of Registrable Securities. Each selling holder
of Registrable Securities agrees to indemnify and hold harmless the Company, its officers,
directors, agents, employees, partners and Affiliates, and each Person, if any, who controls
the Company within the meaning of either Section
15 of the Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity
from the Company to the selling holders of Registrable Securities, but only with respect to
information furnished in writing by such selling holder with respect to such selling holder
expressly for use in any registration statement or prospectus relating to the Registrable
Securities which contained a material misstatement of fact or omission of a material fact, or
any amendment or supplement thereto,
or any preliminary prospectus. In case any action or proceeding shall be brought against the
Company or its officers, directors, agents, employees, partners or Affiliates, or any such
controlling Person, in respect of
which indemnity may be sought against any selling holder, such selling holder shall have the
rights and duties given to the Company, and the Company or its officers, directors, agents,
employees, partners or Affiliates, or
such controlling Person shall have the rights and duties given to such selling holders by
Section 4(e)(2).

Each selling holder of Registrable Securities also agrees to indemnify and hold harmless
underwriters of the

 

19

Registrable Securities, their officers, directors, agents, employees, partners and
Affiliates, and each Person who controls such underwriters on substantially the same basis as
that of the indemnification of the Company provided in this Section 4(e)(3).

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

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

 

20

untrue or alleged untrue statement or omission or alleged omission, and no selling holder
shall be required to contribute any amount in excess of the amount by which the total price
at which the Registrable Securities of such selling holder were offered to the public exceeds
the amount of any damages which such selling holder has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. No Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall
be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

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

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

     (h) Termination. This Section 4 shall continue in full force and effect until
none of the Shares are Registrable Securities, except that paragraph (e) shall survive any
termination of this Section 4.

     Section 5. Miscellaneous.

 

21

          (a) Effectiveness. The provisions of this Agreement shall be effective as of the
Closing Date (as defined in the Acquisition Agreement).

          (b) Termination. The provision of Section 2(c) shall terminate on the Second
Anniversary. The provisions of Section 2(d) and 2(e) shall terminate on the tenth anniversary of
the Closing. The provisions of Section 2(a) and (b) and Section 3 shall survive indefinitely. The
provisions of Section 4 shall terminate as provided in Section 4(h).

          (c) Entire Agreement. This Agreement represents the entire understanding and
agreement between the parties hereto with respect to the subject matter hereof and supersedes all
prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written of the parties.

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

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

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

          (g) Notices. All communications provided for under this Agreement shall be in writing
and shall be delivered by hand or by first-class regular mail, postage prepaid, to the following
addresses, or such other addresses as shall be given by notice delivered hereunder, and shall be
deemed to have been given on the day of personal delivery thereof or the third business day after
such mailing:

If to WP, to:

Wasserstein Perella & Co., Inc.

31 West 52nd Street

26th Floor

New York, New York 10019

Attention: W. Townsend Ziebold 

 

22

Wasserstein Perella Partners, L.P.

31 West 52nd Street

26th Floor

New York, New York 10019

Attention: W. Townsend Ziebold 

Wasserstein Perella Offshore Partners, L.P

31 West 52nd Street

26th Floor

New York, New York 10019

Attention: W. Townsend Ziebold 

with a copy to:

Shea & Gould

1251 Avenue of the Americas

New York, New York 10020

Attention: Richard L. Smithline, Esq.

If to Gelfond or Wechsler, to:

Bradley J. Wechsler

88 East Middle Patent Road

Bedford, New York 10506

      and

Richard L. Gelfond

4 Cheviot Road

Southampton, New York 11968

with a copy to:

Shearman & Sterling

599 Lexington Avenue

New York, New York 10022

Attention: Peter D. Lyons, Esq.

If to the Company, to:

IMAX Corporation

John Davison

45 Charles Street

Toronto, Ontario M4Y1N1

If to Trumbull, to:

The Trumbull Company, Inc.

P.O. Box 847

 

23

Riverview Road

Lenox, Massachusetts 01240

Attention: Douglas Trumbull

with a copy to:

Douglas Trumbull

P.O. Box 55

Southfield, Massachusetts 01259

If to a Selling Shareholder, to the address set forth in Exhibit A for such
Shareholder,

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

          (h) Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the Province of Ontario and to laws of Canada applicable therein.

          (i) Benefit; Successors and Assigns. Except as otherwise provided herein, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their
respective successors and permitted assigns; provided, however, that this Agreement
shall not inure to the benefit of any Prospective Transferee unless such Prospective Transferee
shall have complied with the terms of Section 2(f). No Original Shareholder may assign any of its
rights hereunder to any Person other than a transferee that has complied with the requirements of
Section 2(f) in all respects to the extent required thereby. Nothing in this Agreement either
express or implied is intended to confer on any person other than the parties hereto and their
respective successors and permitted assigns, any rights, remedies or obligations under or by reason
of this Agreement.

          (j) Injunctive Relief. Each party recognizes that in the event such party fails to
perform, observe or discharge any of such party’s obligations or liabilities under this Agreement,
no remedy at law will provide adequate relief to the injured parties, and agree that the injured
parties shall be entitled to temporary and permanent injunctive relief in any such case without the
necessity of proving actual damages and without being required to post a bond or other security.

          (k) Limitation of Liability. No personal liability or responsibility of either GW
Shareholder shall at any time be enforceable against either GW Shareholder on account of any
representation, warranty, undertaking, covenant or agreement

 

24

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

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

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

	 	 	 	 	 	 	 
	 	 	WGIM ACQUISITION CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Bradley J. Wechsler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Bradley J. Wechsler	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	 	 	WASSERSTEIN PERELLA PARTNERS, L.P.
	 	 	By Wasserstein Perella Management Partners, Inc.
	 	 	its general partner
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	WASSERSTEIN PERELLA OFFSHORE PARTNERS, L.P.
	 	 	By Wasserstein Perella Management Partners, Inc.
	 	 	its general partner
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Richard L. Gelfond
	 	 	 	 	 
	 	 	Richard L. Gelfond
	 
	 	 	 	 	 	 
	 	 	/s/ Bradley J. Wechsler
	 	 	 	 	 
	 	 	Bradley J. Wechsler
	 
	 	 	 	 	 	 
	 	 	/s/ Douglas Trumbull
	 	 	 	 	 
	 	 	Douglas Trumbull

 

25

	 	 	 	 	 	 	 
	Jonathan Barker

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Jonathan Barker	 	 
	 
	 	 	 	 	 	 
	Nancy Bell

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Nancy Bell	 	 
	 
	 	 	 	 	 	 
	Gregory J. Breen

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Gregory J. Breen	 	 
	 
	 	 	 	 	 	 
	C.W. Breukelman

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	C.W. Breukelman	 	 
	 
	 	 	 	 	 	 
	David Breukelman

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	David Breukelman	 	 
	 
	 	 	 	 	 	 
	Elaine Breukelman

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Elaine Breukelman	 	 
	 
	 	 	 	 	 	 
	Marion Breukelman

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Marion Breukelman	 	 
	 
	 	 	 	 	 	 
	Tanya Breukelman

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Tanya Breukelman	 	 
	 
	 	 	 	 	 	 
	W.A. Breukelman

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	W.A. Breukelman	 	 
	 
	 	 	 	 	 	 
	Canmont Investment Corp. Ltd.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Canmont Investment Corp. Ltd.	 	 
	 
	 	 	 	 	 	 
	James B. Cawthon, Jr.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	James B. Cawthon, Jr.	 	 
	 
	 	 	 	 	 	 
	Elizabeth Chaplin

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Elizabeth Chaplin	 	 

 

26

	 	 	 	 	 	 	 
	Diana Chaplin

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Diana Chaplin	 	 
	 
	 	 	 	 	 	 
	Gordon Chaplin

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Gordon Chaplin	 	 
	 
	 	 	 	 	 	 
	434786 Ontario Limited

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	434786 Ontario Limited	 	 
	 
	 	 	 	 	 	 
	434787 Ontario Limited

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	434787 Ontario Limited	 	 
	 
	 	 	 	 	 	 
	James D. Chaplin

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	James D. Chaplin	 	 
	 
	 	 	 	 	 	 
	Janet Chaplin

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Janet Chaplin	 	 
	 
	 	 	 	 	 	 
	Richard Chaplin

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Richard Chaplin	 	 
	 
	 	 	 	 	 	 
	Charlford Investments Inc.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Charlford Investments Inc.	 	 
	 
	 	 	 	 	 	 
	Ann Cochren

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Ann Cochren	 	 
	 
	 	 	 	 	 	 
	Doug Daymond

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Doug Daymond	 	 
	 
	 	 	 	 	 	 
	Stewart Daymond

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Stewart Daymond	 	 
	 
	 	 	 	 	 	 
	Daedalus Investments Ltd.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Daedalus Investments Ltd.	 	 
	 
	 	 	 	 	 	 
	John M. Davison

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	John M. Davison	 	 

 

27

	 	 	 	 	 	 	 
	Executronics Limited

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Executronics Limited	 	 
	 
	 	 	 	 	 	 
	Allison Ferguson

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Allison Ferguson	 	 
	 
	 	 	 	 	 	 
	Betty Ferguson

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Betty Ferguson	 	 
	 
	 	 	 	 	 	 
	Graeme Ferguson

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Graeme Ferguson	 	 
	 
	 	 	 	 	 	 
	Munro Ferguson

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Munro Ferguson	 	 
	 
	 	 	 	 	 	 
	Joan Fisk

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Joan Fisk	 	 
	 
	 	 	 	 	 	 
	Forden Investments Ltd.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Forden Investments Ltd.	 	 
	 
	 	 	 	 	 	 
	Nancy Garrett

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Nancy Garrett	 	 
	 
	 	 	 	 	 	 
	Michael A. Gibbon

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Michael A. Gibbon	 	 
	 
	 	 	 	 	 	 
	Graeholdings Ltd.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Graeholdings Ltd.	 	 
	 
	 	 	 	 	 	 
	Jano Holdings Inc.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Jono Holdings Inc.	 	 
	 
	 	 	 	 	 	 
	David Bedford Keighley

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	David Bedford Keighley	 	 
	 
	 	 	 	 	 	 
	Patricia Anne Keighley

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Patricia Anne Keighley	 	 

 

28

	 	 	 	 	 	 	 
	Barbara Kerr

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Barbara Kerr	 	 
	 
	 	 	 	 	 	 
	Robert Kerr

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Robert Kerr	 	 
	 
	 	 	 	 	 	 
	Janet Kroitor

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Janet Kroitor	 	 
	 
	 	 	 	 	 	 
	Paul Kroitor

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Paul Kroitor	 	 
	 
	 	 	 	 	 	 
	Roman Kroitor

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Roman Kroitor	 	 
	 
	 	 	 	 	 	 
	Stephanie Kroitor

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Stephanie Kroitor	 	 
	 
	 	 	 	 	 	 
	Tanya Kroitor

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Tanya Kroitor	 	 
	 
	 	 	 	 	 	 
	Yvanna Kroitor

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Yvanna Kroitor	 	 
	 
	 	 	 	 	 	 
	Karen Kucera

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Karen Kucera	 	 
	 
	 	 	 	 	 	 
	Ian Maxwell

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Ian Maxwell	 	 
	 
	 	 	 	 	 	 
	Lynn A. McCroskey

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Lynn A. McCroskey	 	 
	 
	 	 	 	 	 	 
	Andre Picard

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Andre Picard	 	 

 

29

	 	 	 	 	 	 	 
	Jennifer H. Rae

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Jennifer H. Rae	 	 
	 
	 	 	 	 	 	 
	G. Mary Ruby

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	G. Mary Ruby	 	 
	 
	 	 	 	 	 	 
	Scocam Investment Corp.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Scocam Investment Corp.	 	 
	 
	 	 	 	 	 	 
	Sero Sed Serio Inc.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Sero Sed Serio Inc.	 	 
	 
	 	 	 	 	 	 
	James Scott Shaw

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	James Scott Shaw	 	 
	 
	 	 	 	 	 	 
	William C. Shaw

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	William C. Shaw	 	 
	 
	 	 	 	 	 	 
	Alexandra Shea

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Alexandra Shea	 	 
	 
	 	 	 	 	 	 
	Stephen Low Productions Inc.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Stephen Low Productions Inc.	 	 
	 
	 	 	 	 	 	 
	Martha Turner

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Martha Turner	 	 
	 
	 	 	 	 	 	 
	Alvis P. Wales, Jr.

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Alvis P. Wales, Jr.	 	 
	 
	 	 	 	 	 	 
	Robert Andrew Warnock

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Robert Andrew Warnock	 	 
	 
	 	 	 	 	 	 
	James Warnock

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	James Warnock	 	 
	 
	 	 	 	 	 	 
	Anne D. Watkinson

	 	by
	 	*
	 	as attorney-in-fact
	 

	 	 	 	 	 	 
	 

	 	 	 	Anne D. Watkinson	 	 

 

	*	 	William A. Breukelman, by signing his name hereto, does hereby sign this Shareholders
Agreement on behalf of each of the Selling Shareholders after whose typed names asterisks
appear pursuant to a power of attorney duly executed by each such Selling Shareholder.

	 	 	 	 	 
	 

	 	By
	 	/s/ William A. Breukelman
	 

	 	 	 	 
	 

	 	 	 	Attorney-in-fact
	 
	 	 	 	 
	 

	 	 	 	/s/ William A. Breukelman
	 

	 	 	 	 
	 

	 	 	 	William A. Breukelman

 

Schedule A

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Associated	 	Class B Convertible	 	Class C
	Selling Shareholder	 	Group B Seller	 	Preferred Shares	 	Preferred Shares
	Jonathan Barker

	 	 	 	 	1,448	 	 	 	290	 
	Nancy Bell

	 	 	 	 	666	 	 	 	133	 
	Gregory J. Breen

	 	 	 	 	1,448	 	 	 	290	 
	C.W. Breukelman

	 	 	 	 	1,293	 	 	 	259	 
	David Breukelman

	 	 	 	 	376	 	 	 	75	 
	Elaine Breukelman

	 	 	 	 	376	 	 	 	75	 
	Marion E. Breukelman

	 	 	 	 	376	 	 	 	75	 
	Tanya Breukelman

	 	 	 	 	376	 	 	 	75	 
	W. A. Breukelman

	 	Executronics Limited
	 	 	1,546	 	 	 	309	 
	Canmont Investment Corp. Ltd.

	 	 	 	 	1,940	 	 	 	388	 
	James B. Cawthon, Jr.

	 	 	 	 	290	 	 	 	58	 
	Elizabeth Chaplin

	 	 	 	 	405	 	 	 	81	 
	Diana Chaplin

	 	 	 	 	405	 	 	 	81	 
	434786 Ontario Limited

	 	 	 	 	579	 	 	 	116	 
	434787 Ontario Limited

	 	 	 	 	5,417	 	 	 	1,083	 
	James D. Chaplin

	 	434787 Ontario Limited
	 	 	41	 	 	 	8	 
	Janet Chaplin

	 	 	 	 	405	 	 	 	81	 
	Richard Chaplin

	 	 	 	 	405	 	 	 	81	 
	Charlford Investments Inc.

	 	 	 	 	985	 	 	 	197	 
	Ann Cochren

	 	 	 	 	434	 	 	 	87	 
	Doug Daymond

	 	 	 	 	145	 	 	 	29	 
	Daedalus Investments Ltd.

	 	 	 	 	5,174	 	 	 	1,035	 
	John M. Davison

	 	 	 	 	1,086	 	 	 	217	 
	Executronics Limited

	 	 	 	 	19,961	 	 	 	3,992	 
	Allison Ferguson

	 	 	 	 	1,361	 	 	 	272	 
	Betty Ferguson

	 	 	 	 	16,912	 	 	 	3,382	 
	Graeme Ferguson

	 	Graeholdings Ltd.
	 	 	1,059	 	 	 	212	 
	Munro Ferguson

	 	 	 	 	1,361	 	 	 	272	 
	Joan Fisk

	 	 	 	 	695	 	 	 	139	 
	Forden Investments Ltd.

	 	 	 	 	956	 	 	 	191	 
	Nancy Garrett

	 	 	 	 	550	 	 	 	110	 
	Michael A. Gibbon

	 	 	 	 	1,014	 	 	 	203	 
	Graeholdings Ltd.

	 	 	 	 	22,635	 	 	 	4,527	 
	Janro Holdings Inc.

	 	 	 	 	16,668	 	 	 	3,334	 
	David Bedford Keighley

	 	 	 	 	413	 	 	 	83	 
	Patricia Anne Keighley

	 	 	 	 	413	 	 	 	83	 
	Barbara Kerr

	 	 	 	 	666	 	 	 	133	 
	Robert Kerr

	 	Sero Sed Serio Inc.
	 	 	1,332	 	 	 	266	 
	Janet Kroitor

	 	Janro Holdings Inc.
	 	 	1,484	 	 	 	297	 
	Paul Kroitor

	 	 	 	 	681	 	 	 	136	 
	Roman Kroitor

	 	Janro Holdings Inc.
	 	 	1,149	 	 	 	230	 
	Stephanie Kroitor

	 	 	 	 	681	 	 	 	136	 
	Tanya Kroitor

	 	 	 	 	681	 	 	 	136	 
	Yvanna Kroitor

	 	 	 	 	681	 	 	 	136	 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Associated	 	Class B Convertible	 	Class C
	Original Shareholder	 	Group B Seller	 	Preferred Shares	 	Preferred Shares
	Karen Kucera

	 	 	 	 	666	 	 	 	133	 
	Ian Maxwell

	 	 	 	 	290	 	 	 	58	 
	Lynn A. McCroskey

	 	 	 	 	290	 	 	 	58	 
	Andre Picard

	 	 	 	 	64	 	 	 	13	 
	Jennifer H. Rae

	 	 	 	 	290	 	 	 	58	 
	G. Mary Ruby

	 	 	 	 	507	 	 	 	101	 
	Scocam Investment Corp.

	 	 	 	 	19,842	 	 	 	3,968	 
	Sero Sed Serio Inc.

	 	 	 	 	22,564	 	 	 	4,513	 
	James Scott Shaw

	 	 	 	 	666	 	 	 	133	 
	William C. Shaw

	 	Scocam Investment Corporation
	 	 	1,332	 	 	 	266	 
	Alexander Shea

	 	 	 	 	681	 	 	 	136	 
	Stephen Low Productions Inc.

	 	 	 	 	579	 	 	 	116	 
	Martha Turner

	 	 	 	 	290	 	 	 	58	 
	Alvis F. Wales, Jr.

	 	 	 	 	290	 	 	 	58	 
	Andrew Warnock

	 	 	 	 	463	 	 	 	93	 
	James Warnock

	 	 	 	 	463	 	 	 	93	 
	Anne D. Watkinson

	 	 	 	 	290	 	 	 	58	 

 

 

Exhibit A

Page 1 of 6

Names and Addresses of Selling Shareholders

	 	 	 
	NAMES OF SELLERS	 	ADDRESSES
	Jonathan Barker

	 	28 Neville Park Boulevard
	 

	 	TORONTO, Ontario
	 

	 	M4E 3P6
	 
	 	 
	Nancy Bell

	 	178 Edgemont Street S.
	 

	 	HAMILTON, Ontario
	 

	 	L8K 2H9
	 
	 	 
	Gregory J. Breen

	 	64 Greencroft Crescent
	 

	 	UNIONVILLE, Ontario
	 

	 	L3R 3Y5
	 
	 	 
	C.W. Breukelman

	 	4104 Burkeridge Place
	 

	 	WEST VANCOUVER, British Columbia
	 

	 	V7V 3M9
	 
	 	 
	David Breukelman

	 	4138 Perivale Road
	 

	 	MISSISSAUGA, Ontario
	 

	 	L5C 3V6
	 
	 	 
	Elaine Breukelman

	 	1801 Stonepath Crescent
	 

	 	MISSISSAUGA, Ontario
	 

	 	L4X 1Y1
	 
	 	 
	Marion E. Breukelman

	 	46 Miranda Avenue
	 

	 	TORONTO, Ontario
	 

	 	M6E 4G4
	 
	 	 
	Tanya Breukelman

	 	1801 Stonepath Crescent
	 

	 	MISSISSAUGA, Ontario
	 

	 	L4X 1Y1
	 
	 	 
	W. A. Breukelman

	 	1801 Stonepath Crescent
	 

	 	MISSISSAUGA, Ontario
	 

	 	L4X 1Y1
	 
	 	 
	Canmont Investment Corp. Ltd.

	 	18A Hazelton Avenue
	 

	 	Apt 406 East
	 

	 	TORONTO, Ontario
	 

	 	M5R 2E2
	 
	 	 
	James B. Cawthon, Jr.

	 	600 Stratton Court
	 

	 	BIRMINGHAM, Alabama
	 

	 	35209
	 
	 	 
	Diana Chaplin

	 	c/o Mrs. Janet Young
	 

	 	2743 West First Avenue
	 

	 	VANCOUVER, British Columbia
	 

	 	V6K 1H2

 

 

Page 2 of 6

	 	 	 
	NAMES OF SELLERS	 	ADDRESSES
	Elizabeth Chaplin

	 	Sea to Sky Real Estate Ltd.
	 

	 	P.O. Box 1500
	 

	 	4202 Village Square
	 

	 	WHISTLER VILLAGE, British Columbia
	 

	 	V0N 1B0
	 
	 	 
	James D. Chaplin

	 	R.R. # 4
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1R 5S5
	 
	 	 
	Janet Chaplin

	 	58 Blair Road
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1S 2J1
	 
	 	 
	Richard Chaplin

	 	R.R. # 4
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1R 5S5
	 
	 	 
	Charlford Investments Inc.

	 	Suite 1055
	 

	 	Place du Canada
	 

	 	MONTREAL, Quebec
	 

	 	H3B 2N2
	 
	 	 
	Ann Cochren

	 	13 Cumminsville Road
	 

	 	Box 7
	 

	 	MILLGROVE, Ontario
	 

	 	L0R 1V0
	 
	 	 
	Daedalus Investments Ltd.

	 	c/o Sontair Limited
	 

	 	2450 Derry Road East, Hanger # 9
	 

	 	MISSISSAUGA, Ontario
	 

	 	L5S 1B2
	 
	 	 
	John M. Davison

	 	64 Hanna Road
	 

	 	TORONTO, Ontario
	 

	 	M4G 3N1
	 
	 	 
	Doug Daymond

	 	R. R. # 22
	 

	 	CAMBRIDGE, Ontario
	 

	 	N3C 2V2

 

 

Page 3 of 6

	 	 	 
	NAMES OF SELLERS	 	ADDRESSES
	Executronics Limited

	 	c/o 38 Isabella Street
	 

	 	TORONTO, Ontario
	 

	 	M4Y 1N1
	 

	 	Attention: W.A. Breukelman
	 
	 	 
	Allison Ferguson

	 	R.R. # 2
	 

	 	PUSLINCH, Ontario
	 

	 	N0B 2J0
	 
	 	 
	Betty Ferguson

	 	R.R. # 2
	 

	 	PUSLINCH, Ontario
	 

	 	N0B 2J0
	 
	 	 
	Graeme Ferguson

	 	R.R. # 1 Norway Point
	 

	 	BAYSVILLE, Ontario
	 

	 	P0B 1A0
	 
	 	 
	Munro Ferguson

	 	4622 Esplanade Avenue
	 

	 	MONTREAL, Quebec
	 

	 	H2T 2Y5
	 
	 	 
	Joan Fisk

	 	50 Charles Street
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1S 2W8
	 
	 	 
	Forden Investments Ltd.

	 	Suite 1055
	 

	 	Place du Canada
	 

	 	MONTREAL, Quebec
	 

	 	H3B 2N2
	 
	 	 
	Nancy Ellen Garrett

	 	50 Charles Street
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1S 2W8
	 
	 	 
	Michael A. Gibbon

	 	1430 Monk’s Passage
	 

	 	OAKVILLE, Ontario
	 

	 	L6M 1J5
	 
	 	 
	Graeholdings Ltd.

	 	R.R. # 1 Norway Point
	 

	 	BAYSVILLE, Ontario
	 

	 	P0B 1A0
	 
	 	 
	Janro Holdings Inc.

	 	255 Chemin de la Rouge
	 

	 	R.R. # 3
	 

	 	DEL, Quebec
	 

	 	J0T 1A0

 

 

Page 4 of 6

	 	 	 
	NAMES OF SELLERS	 	ADDRESSES
	David Bedford Keighley

	 	7 McCarty Crescent
	 

	 	MARKHAM, Ontario
	 

	 	L3P 4R4
	 
	 	 
	Patricia Anne Keighley

	 	7 McCarty Crescent
	 

	 	MARKHAM, Ontario
	 

	 	L3P 4R4
	 
	 	 
	Barbara Kerr

	 	55A Avenue Road
	 

	 	Apartment 412
	 

	 	TORONTO, Ontario
	 

	 	M5R 2G3
	 
	 	 
	Robert Kerr

	 	55A Avenue Road
	 

	 	Apartment 412
	 

	 	TORONTO, Ontario
	 

	 	M5R 2G3
	 
	 	 
	Janet Kroitor

	 	255 Chemin de la Rouge
	 

	 	R.R. # 3
	 

	 	ARUNDEL, Quebec
	 

	 	J0T 1A0
	 
	 	 
	Paul Kroitor

	 	c/o 255 Chemin de la Rouge
	 

	 	R.R. # 3
	 

	 	ARUNDEL, Quebec
	 

	 	J0T 1A0
	 
	 	 
	Roman Kroitor

	 	255 Chemin de la Rouge
	 

	 	R.R. # 3
	 

	 	ARUNDEL, Quebec
	 

	 	J0T 1A0
	 
	 	 
	Stephanie Kroitor

	 	255 Chemin de la Rouge
	 

	 	R.R. # 3
	 

	 	ARUNDEL, Quebec
	 

	 	J0T 1A0
	 
	 	 
	Tanya Kroitor

	 	R.R. # 2
	 

	 	PUSLINCH, Ontario
	 

	 	N0B 2J0
	 
	 	 
	Yvanna Kroitor

	 	198 Arlington Avenue
	 

	 	Apartment # 2
	 

	 	OTTAWA, Ontario
	 

	 	K1R 5S9
	 
	 	 
	Karen Kucera

	 	7 Joycelyn Drive
	 

	 	STREETSVILLE, Ontario
	 

	 	L5M 1T5

 

 

Page 5 of 6

	 	 	 
	NAMES OF SELLERS	 	ADDRESSES
	Ian Maxwell

	 	233 Vance Drive
	 

	 	OAKVILLE, Ontario
	 

	 	L6L 3K9
	 
	 	 
	Lynn A. McCroskey

	 	4912 Brandywood Drive
	 

	 	BIRMINGHAM, Alabama
	 

	 	35223
	 
	 	 
	Andre Picard

	 	2496 Route 125
	 

	 	NOTRE-DAME-DE-LA-
	 

	 	MERCI, Quebec
	 

	 	J0T 2A0
	 
	 	 
	Jennifer H. Rae

	 	470 Wellesley Street East
	 

	 	TORONTO, Ontario
	 

	 	M4X 1H9
	 
	 	 
	G. Mary Ruby

	 	113 Inglewood Drive
	 

	 	TORONTO, Ontario
	 

	 	M4T 1H6
	 
	 	 
	Scocam Investment Corp.

	 	300 West River Road
	 

	 	R.R. #4
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1R 5S5
	 
	 	 
	Sero Sed Serio Inc.

	 	55A Avenue Road
	 

	 	Apartment 412
	 

	 	TORONTO, Ontario
	 

	 	M5R 2G3
	 

	 	ATTENTION: Robert Kerr
	 
	 	 
	James Scott Shaw

	 	2418 Glenwood School Drive
	 

	 	Unit 42
	 

	 	BURLINGTON, Ontario
	 

	 	L7R 3S2
	 
	 	 
	William C. Shaw

	 	300 West River Road
	 

	 	R.R. #4
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1R 5S5
	 
	 	 
	Alexander Shea

	 	1217 Northshore Drive
	 

	 	SUDBURY, Ontario
	 

	 	P3B 1E7

 

 

Page 6 of 6

	 	 	 
	NAMES OF SELLERS	 	ADDRESSES
	Stephen Low Productions Inc.

	 	1015 Lakeshore Drive
	 

	 	DORVAL, Quebec
	 

	 	H9S 2C9
	 

	 	ATTENTION: Stephen Low
	 
	 	 
	Martha Turner

	 	R.R. # 4
	 

	 	7 Taylor Court
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1R 5S5
	 
	 	 
	Alvis F. Wales, Jr.

	 	4933 Stone Mill Road
	 

	 	BIRMINGHAM, Alabama
	 

	 	35223
	 
	 	 
	Andrew Warnock

	 	180 Salisbury Avenue
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1S 1K4
	 
	 	 
	James Warnock

	 	31 Brant Road North
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1S 2W3
	 
	 	 
	Anne D. Watkinson

	 	22 Southport Street
	 

	 	Apartment # 123
	 

	 	TORONTO, Ontario
	 

	 	M6S 4Y9
	 
	 	 
	434786 Ontario Limited

	 	Gordon Chaplin
	 

	 	Canadian General-Tower Ltd.
	 

	 	52 Middleton Street
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1R 5T6
	 
	 	 
	434787 Ontario Limited

	 	James D. Chaplin
	 

	 	Canadian General-Tower Ltd.
	 

	 	52 Middleton Street
	 

	 	CAMBRIDGE, Ontario
	 

	 	N1R 5T6

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