Document:

exv10w16

 

Exhibit
10.16

SHARE TRANSFER AGREEMENT

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

RECITALS

	1.	 	Seller is the beneficial owner of [•] common shares (the “Shares”) in the capital of
Photowatt International S.A.S. (“Photowatt France”), a corporation duly organized and validly
existing under the laws of France.
	 
	2.	 	Seller desires to sell to Purchaser and Purchaser desires to purchase from Seller the Shares
on the terms and conditions hereinafter set forth.
	 
	3.	 	This Agreement is being entered into concurrent with certain other agreements in connection
with the reorganization of the Seller’s solar operations and the initial public offering of
            shares in the common stock of the Purchaser.

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

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

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

3. Payment of Purchase Price. The Purchase Price shall be paid and satisfied by Purchaser
as follows: (i) as to [•] of the Purchase Price, by the issuance by Purchaser to Seller of a demand
promissory note (the “Note”) in the principal amount of [•] in favour of Seller; and (ii) as to the
balance of the Purchase Price, by the issuance by Purchaser to Seller of [•] common shares in the
capital of Purchaser (the “Consideration Shares”) having an aggregate fair market value and stated
capital equal to [•]. Seller hereby acknowledges receipt from Purchaser on the date hereof of the
Note and the Consideration Shares in satisfaction of the Purchase Price.

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

  

 

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

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

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

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

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

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

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

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

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

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

 

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

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

10. General.

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

 

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

* * * * *

 

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

	 	 	 	 	 	 	 
	 	 	PHOTOWATT TECHNOLOGIES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

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

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]exv10w17

 

Exhibit
10.17

ASSET TRANSFER AGREEMENT

          THIS AGREEMENT made as of the [•] day of [•], 2007.

B E T W E E N:

ATS AUTOMATION TOOLING SYSTEMS INC.

(the “Vendor”)

- and -

PHOTOWATT TECHNOLOGIES INC.

(the “Purchaser”)

          WHEREAS the Vendor desires to sell to the Purchaser and the Purchaser desires to purchase from
the Vendor the property, rights and assets described herein, on the terms and subject to the
conditions hereinafter set forth;

          AND WHEREAS the Purchaser desires to issue to the Vendor [•] common shares in the capital of
the Purchaser as consideration for the property, rights and assets to be transferred pursuant to
the terms and conditions herein;

          AND WHEREAS, this Agreement is being entered into concurrent with certain other agreements in
connection with the reorganization of the Vendor’s solar operations and the initial public offering
of shares in the common stock of the Purchaser;

          NOW THEREFORE THIS AGREEMENT WITNESSES that, for the consideration hereinafter set forth, the
Parties have agreed and do hereby agree with each other as follows:

ARTICLE I

INTERPRETATION

1.1 Definitions. Where used in this Agreement, unless the context or subject matter
otherwise requires, the following words and phrases shall have the meanings set forth below:

“Affiliate” of any specified Person means any other Person directly or indirectly
“controlling,” “controlled by” or “under common control with” (within the meaning of the
Securities Act), such specified Person; provided, however, that for purposes
of this Agreement, except to the extent expressly provided otherwise, the determination of
whether a Person is an Affiliate of another Person shall be made assuming that no member of
the ATS Group is an Affiliate of the Purchaser and vice versa;

 

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“Assets” means assets, properties and rights (including goodwill and rights arising under
Contracts), wherever located (including in the possession of vendors, other Persons or
elsewhere), whether real, personal or mixed, tangible, intangible or contingent, in each
case whether or not recorded or reflected or required to be recorded or reflected on the
books and records or financial statements of any Person;

“Assumed Liabilities” means the following:

	 	(i)	 	any and all Liabilities of the Vendor to the extent
arising out of or relating to the SSP Division or the Transferred Property,
in each case whether such Liabilities arise or accrue prior to, on or after
the Time of Transfer including:

	 	(A)	 	any and all Liabilities of the SSP Division
owed to the ATS Group pursuant to valid intercompany accounts as of the
Time of Transfer;
	 
	 	(B)	 	any and all Liabilities arising from or related
to Environmental Conditions (x) existing on, under, about or in the
vicinity of any of the SSP Division Facilities whether prior to or
after the Time of Transfer, or (y) arising out of operations occurring
at any time prior to or after the Time of Transfer, of the SSP
Division, the Transferred Property or the SSP Division Facilities;
provided, however, that any such Liabilities with respect to the SSP
Division Facilities shall be limited to such Liabilities assumed by the
Purchaser pursuant to the Lease Agreement;
	 
	 	(C)	 	any and all employment-related Liabilities
related to past or present employees of the SSP Division;
	 
	 	(D)	 	any and all Liabilities relating to, arising
out of or resulting from any act or failure to act by any
Representative of the SSP Division (whether or not such act or failure
to act is or was within such Person’s authority); and
	 
	 	(E)	 	any and all tax Liabilities relating to,
arising out of or resulting from the SSP Division;

	 	(ii)	 	any and all Liabilities to the extent arising out of or
relating to the operation of any business conducted by the Purchaser at any
time after the Time of Transfer;
	 
	 	(iii)	 	any and all Liabilities of the SSP Division that are
expressly listed, scheduled or otherwise clearly described herein or in any
other Separation Agreement as Liabilities for which the Purchaser is to be
responsible, including but not limited to, any Included Liabilities;

 

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	 	(iv)	 	any and all Business Guarantees that are not replaced
with Substitute Guarantees, or with respect to which the Vendor or any
member of the ATS Group has any liability or obligation after the Time of
Transfer; and
	 
	 	(v)	 	any and all obligations of the Purchaser under or
pursuant to this Agreement or any other instrument entered into in
connection herewith;

but excluding the Excluded Liabilities;

“ATS Group” means the Vendor and each Person that the Vendor directly or indirectly controls
(within the meaning of the Securities Act), other than the Purchaser, Spheral Solar Power,
Inc., Photowatt Technologies USA Inc. and Photowatt International S.A.S.;

“Business Guarantees” means various arrangements entered into by members of the ATS Group in
which one or more members of the ATS Group issued or made available guarantees, sureties,
bonds, letters of credit or similar instruments or are the primary obligors on other
agreements, in any such case to support or facilitate the SSP Division;

“Contract” means any contract, agreement, lease, license, sales order, purchase order,
instrument or other commitment that is binding on the SSP Division or any part of its
property under applicable Law;

“Employees” means all of the employees of the SSP Division, including any employees on
leave, disability or subject to recall;

“Environmental Conditions” means the presence in the environment, including the soil,
subsurface strata, groundwater, surface water or ambient air, of any Hazardous Material at a
level which exceeds any applicable standard or threshold under any Environmental Law or
otherwise requires investigation or remediation (including investigation, study, health or
risk assessment, monitoring, removal, treatment or transport) under any applicable
Environmental Laws;

“Environmental Laws” means all Laws of any Governmental Authority with jurisdiction that
relate to the protection of the environment (including ambient air, surface water, ground
water, land surface or subsurface strata) including laws and regulations relating to a
Hazardous Materials Release, or otherwise relating to the import, storage, distribution,
labelling, sale, use, treatment, disposal, transport or handling of Hazardous Materials, or
to the exposure of any individual to a Hazardous Materials Release;

“Excluded Assets” means any and all Assets of the SSP Division set out as “Excluded Assets”
in the Master Separation Agreement and any and all shares in the capital stock of Photowatt
Technologies Inc., Spheral Solar Power, Inc., Photowatt Technologies USA Inc., Photowatt
International S.A.S., and ATS Canadian Investment Holding Company Inc.;

“Excluded Liabilities” means [•];

 

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“Governmental Authority” means any federal, provincial, state, local or foreign government,
supranational, governmental, regulatory or administrative authority, instrumentality, agency
or commission, political subdivision, self-regulatory organization or any court, tribunal or
judicial or arbitral body or other governmental authority;

“Hazardous Materials” means chemicals, pollutants, contaminants, hazardous substances,
dangerous substance, noxious substance, toxic substance, radioactive and biological
materials, petroleum and petroleum products or any fraction thereof, hazardous waste,
flammable or explosive material, radio-active material, urea formaldehyde foam insulation,
asbestos, polychlorinated biphenyls, polychlorinated biphenal waste, polychlorinated
biphenal related waste or any other substance or material now or hereafter declared, defined
or deemed to be regulated or controlled in or pursuant to Environmental Laws;

“Hazardous Materials Release” means any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or
outdoor environment, including the movement of Hazardous Materials through ambient air,
soil, surface water, groundwater, wetlands, land or subsurface strata;

“Included Liabilities” means any Liabilities of the SSP Division set out as “Included
Liabilities” in the Master Separation Agreement;

“Law” means any law (statutory, common or otherwise), constitution, ordinance, code, rule,
regulation, guideline, executive order or other similar authority enacted, adopted,
promulgated or applied by any Governmental Authority, each as amended;

“Lease Agreement” has the meaning ascribed thereto in the Master Separation Agreement;

“Liability” means any liability, obligation, cost or expense, whether known or unknown,
asserted or unasserted, fixed, absolute or contingent, matured or unmatured, conditional or
unconditional, latent or patent, accrued or unaccrued, liquidated or unliquidated or due or
to become due, wherever or however arising (including whether arising out of any Law,
Contract or tort based on negligence or strict liability), including but not limited to, any
tax liability;

“Master Separation Agreement” means the Master Separation Agreement between the Purchaser
and the Vendor entered into in connection with the initial public offering of common shares
in the capital stock of the Purchaser;

“Parties” means the Purchaser and the Vendor, and their respective successors and permitted
assigns; and “Party” means either of the Parties;

“Person” means any individual, partnership, limited partnership, limited or unlimited
liability company, joint venture, syndicate, sole proprietorship, company or corporation
with or without share capital, unincorporated association, unincorporated syndicate,

 

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unincorporated organization, trust, trustee, executor, administrator or other legal personal
representative or Governmental Authority however designated or constituted;

“Purchase Price” has the meaning ascribed thereto in Section 3.1 hereof;

“Representatives” means, with respect to any Person, any of such Person’s directors,
officers, employees, consultants, advisers and agents;

“Rights” has the meaning ascribed thereto in Section 5.1 hereof;

“Securities Act” means the Securities Act (Ontario);

“Separation Agreements” has the meaning ascribed thereto in the Master Separation Agreement;

“Substitute Guarantees” means replacements for such Business Guarantees in which the
Purchaser or one of its Affiliates is substituted as the primary obligor thereto;

“SSP Division” means the solar and related businesses and operations conducted by the Vendor
prior to the Time of Transfer through its Spheral Solar division;

“SSP Division Facilities” means 25 Reuter Drive, Cambridge, Ontario, N3E 1A9 and such other
facilities, offices and locations from which the SSP Division’s business or operations are
conducted;

“Tax Act” means the Income Tax Act (Canada) and the regulations thereunder, as amended;

“Tax Value” of any Assets included in the Transferred Property means:

	 	(i)	 	with respect to depreciable property of a prescribed
class for the purposes of the Tax Act, the least of:

	 	(A)	 	the fair market value of such property at the
Time of Transfer;
	 
	 	(B)	 	the Vendor’s cost of the property for the
purposes of the Tax Act; and
	 
	 	(C)	 	the “undepreciated capital cost” to the
Vendor of all property of that class for the purposes of the Tax Act
immediately prior to the Time of Transfer;

	 	(ii)	 	with respect to inventory or capital property (other
than property referred to in (i)), the lesser of:

	 	(A)	 	the “cost amount” to the Vendor of the
property for the purposes of the Tax Act at the Time of Transfer; and

 

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	 	(B)	 	the fair market value of the property at the
Time of Transfer;

	 	(iii)	 	with respect to “eligible capital property” in
respect of the Purchaser’s business for the purposes of the Tax Act, the
lesser of:

	 	(A)	 	4/3 times the Vendor’s “cumulative eligible
capital” in respect of the business for the purposes of the Tax Act
immediately before the Time of Transfer;
	 
	 	(B)	 	the cost to the Vendor of the property; and
	 
	 	(C)	 	the fair market value of the property at the
Time of Transfer; and

	 	(iv)	 	with respect to any other property, the fair market
value of the property at the Time of Transfer;

“Time of Transfer” means the date hereof as set out above;

“Transferred Property” has the meaning ascribed thereto in Section 2.1 hereof;

“Transition Time” means, with respect to each service to be provided by ATS or its agents or
subcontractors under the Transitional Services Agreement, the earliest of the expiry or
termination of such service in relation to the Employees and such other time as mutually
agreed to by the Parties hereto; and

“Transitional Services Agreement” has the meaning ascribed thereto in the Master Separation
Agreement.

1.2 Currency. All sums of money which are referred to in this Agreement are expressed in
lawful money of Canada.

1.3 Construction. The division of this Agreement into articles, sections, paragraphs and
subparagraphs and the insertion of headings are for convenience of reference only and shall not
affect the construction or interpretation of this Agreement. The terms “this Agreement”, “hereof”,
“herein”, “hereunder” and similar expressions refer to this Agreement and not to any particular
article, section or other portion thereof and include any agreement or instrument supplementary or
ancillary hereto. Words importing the singular number only shall include the plural and vice
versa, and words importing the use of any gender shall include all genders. The words “include,”
“includes” and “including” shall be deemed to be followed by “without limitation.”

ARTICLE II

PURCHASE AND SALE OF TRANSFERRED PROPERTY

2.1 Purchase and Sale of Transferred Property. Subject to the terms and provisions hereof,
the Vendor hereby sells, transfers, assigns and conveys to the Purchaser and the Purchaser hereby
purchases and accepts from the Vendor, as at and from the Time of

 

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Transfer, on an “as is, where is” basis any and all Assets that are used exclusively or held for
use exclusively in the SSP Division other than the Excluded Assets (the “Transferred Property”).

2.2 Assumed Liabilities. As at and from the Time of Transfer, the Purchaser hereby fully
and unconditionally assumes and, to the extent they become due and payable, covenants to pay or
otherwise perform or discharge when done, the Assumed Liabilities, to the complete exoneration of
the Vendor.

ARTICLE III

CONSIDERATION

3.1 Consideration for Transferred Property. The consideration (“Purchase Price”) payable
by the Purchaser for the Transferred Property shall be an amount equal to the fair market value of
the Transferred Property at the Time of Transfer, which the Parties have determined to be [•]. The
Purchase Price shall be paid and satisfied by the Purchaser as follows:

	 	(a)	 	as to an amount equal to the fair market value of the Assumed Liabilities, by
the assumption by the Purchaser of the Assumed Liabilities pursuant to Section 2.2
hereof; and
	 
	 	(b)	 	as to the balance, by the issuance by the Purchaser to the Vendor of [•] common shares in the capital of the Purchaser (the “Consideration Shares”) having a stated
capital in an amount equal to the aggregate of:

	 	(i)	 	all amounts each of which is an “agreed amount” as specified in
a joint election to be filed by the Parties under subsection 85(1) of the Tax
Act, less the fair market value of any non-share consideration received by the
Vendor from the Purchaser in respect of the Transferred Property; and
	 
	 	(ii)	 	the fair market value of all Transferred Property that are not
“eligible property” as defined in subsection 85(1.1) of the Tax Act.

3.2 Allocation of Consideration. The consideration received by the Vendor for each of the
properties included in the Transferred Property shall include at least one common share in the
capital of the Purchaser (or fraction thereof) and the fair market value of the consideration
(other than the common shares or a right to receive the common shares) received by the Vendor for
each of the properties included in the Transferred Property shall not exceed the Tax Value of such
property.

3.3 Section 85 Election. The Parties agree to make and file a joint election pursuant to
the provisions of Section 85 of the Tax Act and any applicable provincial legislation in respect of
the Transferred Property, in prescribed form and within the prescribed time, specifying such
“agreed amounts” as are specified by the Vendor as will result in the disposition of such property
on a tax-free basis to the Vendor. If an agreed amount specified in an initial election filed by
the Parties is greater than the agreed amount which would result in a disposition of such property
on a tax-free basis to the Vendor then, at the Vendor’s request, the Parties shall apply to the

 

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Minister of National Revenue or other taxing authority having jurisdiction for permission to amend
such election to comply with this Section 3.3.

3.4 Section 22 Election. The Parties agree to elect jointly in prescribed form pursuant to
Section 22 of the Tax Act and the corresponding provisions of any applicable provincial income tax
legislation and on a timely basis with respect to accounts receivable pursuant to this Agreement to
the extent the face value of any accounts receivable that have been or will be included in
computing the income of the Vendor exceeds the consideration paid by the Purchaser for such
accounts receivable.

3.5 Subsection 20(24) Tax Elections. The Purchaser and the Vendor shall, if applicable,
jointly execute and file an election under subsection 20(24) of the Tax Act in the manner required
by subsection 20(25) of the Tax Act and under the equivalent or corresponding provisions of any
other applicable provincial income tax legislation, in the prescribed forms and within the time
period permitted, as to such amount paid by the Vendor to the Purchaser for assuming future
Liabilities. In this regard, the Purchaser and the Vendor acknowledge that a portion of the
Transferred Assets having a value equal to the amount elected under subsection 20(24) of the Tax
Act and the equivalent provisions of any applicable provincial income tax legislation is being
transferred by the Vendor as a payment for the assumption of such future Liabilities by the
Purchaser.

3.6 Goods and Services Tax Election. On or before the Time of Transfer, the Vendor and the
Purchaser shall jointly execute and the Purchaser shall file within the prescribed time limits, an
election pursuant to Section 167 of the Excise Tax Act (Canada) in order to permit the transaction
contemplated hereby to be completed without goods and services tax.

3.7 Transfer Taxes. The Purchaser shall be responsible for and shall pay all federal and
provincial sales taxes, goods and services taxes, and all other taxes, duties or other like charges
properly payable upon and in connection with the conveyance and transfer of the Transferred
Property to the Purchaser save and except any income or corporation taxes imposed on and payable
directly by the Vendor.

3.8 Bulk Sales. The Vendor has specifically requested the Purchaser to waive the
requirements of any applicable bulk sales legislation and the Purchaser hereby waives such
requirements. The Purchaser shall be responsible for any claims arising from, or costs incurred as
a result of, such waiver.

3.9 Retail Sales Act. The Purchaser hereby waives compliance with Section 6 of the Retail
Sales Tax Act (Ontario). The Purchaser shall be responsible for any claims arising from, or cost
incurred as a result of, such waiver.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

4.1 Representations and Warranties of the Vendor. The Vendor hereby represents and
warrants to the Purchaser, and acknowledges that the Purchaser is relying upon such

 

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representations and warranties in connection with the entering into of this Agreement and the
purchase by the Purchaser of the Transferred Property, that:

	 	(a)	 	Organization and Standing of the Vendor. The Vendor is a
corporation duly organized and validly existing under the laws of the Province of
Ontario, with full power and authority to enter into this Agreement and to sell,
assign, transfer, convey and deliver the Transferred Property to the Purchaser.
	 
	 	(b)	 	Corporate Authorization. All corporate and other proceedings
required to be taken by or on the part of the Vendor to authorize it to execute,
deliver and carry out this Agreement and to sell, assign, transfer, convey and
deliver the Transferred Property to the Purchaser have been duly and properly taken.
Neither the execution and delivery of this Agreement by the Vendor, nor compliance
with its terms, will result in a breach or violation of the Vendor’s charter
documents.
	 
	 	(c)	 	Residence. The Vendor is not a non-resident of Canada for
purposes of the Tax Act.
	 
	 	(d)	 	GST. The Vendor is a registrant for purpose of Part IX of the
Excise Tax Act (Canada) with registration number 10033 1511 RT0001 ATS Canada.

4.2 Representations and Warranties of the Purchaser. The Purchaser hereby represents and
warrants to the Vendor, and acknowledges that the Vendor is relying upon such representations and
warranties in connection with the entering into of this Agreement and the sale to the Purchaser of
the Transferred Property, that:

	 	(a)	 	Organization and Standing of the Purchaser. The Purchaser is a
corporation duly organized and validly existing under the laws of Canada, with full
power and authority to enter into this Agreement.
	 
	 	(b)	 	Corporate Authorization. All corporate and other proceedings
required to be taken by or on the part of the Purchaser to authorize it to execute,
deliver and carry out this Agreement have been duly and properly taken. Neither the
execution and delivery of this Agreement by the Purchaser, nor compliance with its
terms, will result in a breach or violation of the Purchaser’s charter documents.
	 
	 	(c)	 	Consideration Shares Validly Issued. The Consideration Shares
have been validly issued in compliance with applicable law and are fully paid and
non-assessable.
	 
	 	(d)	 	GST. The Purchaser is a registrant for purpose of Part IX of the
Excise Tax Act (Canada) with registration number 85043 7369 RT0001 Photowatt Tech
Inc.

 

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	 	(e)	 	Other. The Purchaser is a taxable Canadian corporation for
purposes of the Tax Act.

4.3 Survival of Representations and Warranties. The representations and warranties of the
Parties hereto set forth in this Agreement shall survive after the Time of Transfer. The
limitation period applicable to any proceeding in respect of such representations and warranties
shall be as prescribed by applicable Law. To the extent the limitation period applicable to any
proceeding in respect of such representations and warranties is governed by the Laws of the
Province of Ontario, the limitation period shall be solely as prescribed in sections 15-17 of the
Limitations Act, 2002 and any other limitation period in respect of such proceeding (including that
provided for in section 4 of the Limitations Act, 2002) is extended accordingly. The rights and
obligations of the Parties hereto shall survive the direct or indirect sale, assignment or other
transfer by any Party of any Assets or Liabilities.

ARTICLE V

NON-ASSIGNABLE RIGHTS

5.1 Non-Assignable Rights. To the extent that any of the Transferred Property (including
any of the Contracts) or any claim, right or benefit arising under or resulting from such
Transferred Property (all such Transferred Property being collectively referred to as the “Rights”)
is not capable of being transferred without the approval, consent or waiver of any third Person
(including a Governmental Authority), or if the transfer of a Right would constitute a breach of
any obligation under, or a violation of, any applicable Law unless the approval, consent or waiver
of such third Person or Governmental Authority is obtained, then this Agreement shall not
constitute an agreement to transfer such Rights unless and until such approval, consent or waiver
has been obtained. After the Time of Transfer, and until all such Rights are transferred to the
Purchaser, the Vendor shall:

	 	(a)	 	maintain its existence and hold the Rights in trust for the Purchaser;
	 
	 	(b)	 	comply with the terms and provisions of the Rights as agent for the
Purchaser at the Purchaser’s cost and for the Purchaser’s benefit;
	 
	 	(c)	 	co-operate with the Purchaser in any reasonable and lawful arrangements
designed to provide the benefits of such Rights to the Purchaser; and
	 
	 	(d)	 	enforce, at the request of the Purchaser and at the expense and for the
account of the Purchaser, any rights of the Vendor arising from such Rights against
any third Person, including the right to elect to terminate any such Rights in
accordance with the terms of such Rights upon the written direction of the
Purchaser.

5.2 In order that the full value of the Rights may be realized for the benefit of the Purchaser,
the Vendor shall, at the request and expense and under the direction of the Purchaser, in the name
of the Vendor or otherwise as the Purchaser may specify, take all such action and do or cause to be
done all such things as are, in the opinion of the Purchaser, necessary or proper in

 

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order that the obligations of the Vendor under such Rights may be performed in such manner that the
value of such Rights is preserved and enures to the benefit of the Purchaser, and that any moneys
due and payable and to become due and payable to the Purchaser in and under the Rights are received
by the Purchaser. The Vendor shall promptly pay to the Purchaser all moneys collected by or paid
to the Vendor in respect of every such Right. The Purchaser shall be responsible for any claim or
Liability under or in respect of such Rights arising because of any action of the Vendor taken
pursuant to this Article V.

ARTICLE VI

EMPLOYEES

6.1 Employees. The Purchaser covenants and agrees to offer employment, effective as of the
Time of Transfer, to all of the Employees on substantially the same terms and conditions as those
applicable to each such Employee immediately prior to the Time of Transfer. The Purchaser shall
recognize the past service with the Vendor and its predecessors for all of the Employees who are
employed by the Purchaser after the Time of Transfer for all purposes, statutory or otherwise.

6.2 Pension and Benefit Plans. The Vendor and the Purchaser will co-operate with each
other to do all things necessary to, prior to the Transition Time for services relating to pension
and benefit plans:

	 	(a)	 	effect the assumption by the Purchaser of all pension and benefit
obligations relating exclusively to the Employees effective as of the Transition
Time and to establish the Purchaser as the sponsor and administrator of such plans,
also effective as of the Transition Time; and
	 
	 	(b)	 	for all pension and benefit obligations relating to the Employees
immediately prior to the Time of Transfer not assumed under Section 6.2(a) hereof,
establish employee pension and benefit plans effective as of the Transition Time
under which the Employees shall be eligible to participate on and after the
Transition Time and which, together with the plans assumed in accordance with
Section 6.2(a) hereof, provide benefits that are no less favourable in the aggregate
to the benefits provided to the Employees immediately prior to the Time of Transfer.

Without limiting the generality of the foregoing, the Vendor and the Purchaser will co-operate with
each other to complete all necessary plan amendments, to effect all required regulatory filings and
to provide all required notices to Employees, providers and others as required.

ARTICLE VII

MISCELLANEOUS

7.1 Amendment. This Agreement may only be modified, amended by, altered or supplemented by
the execution and delivery of a written agreement executed by both the Parties.

 

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7.2 Severability. If any term or other provision of this Agreement shall be determined by
a court, administrative agency or arbitrator in any jurisdiction to be invalid, illegal or
unenforceable, such invalidity, illegality or unenforceability shall not render the entire
Agreement invalid and shall not affect the validity, legality or enforceability of such term or
other provision in any other jurisdiction. Rather, this Agreement shall be construed as if not
containing the particular invalid, illegal or unenforceable provision, and all other provisions of
this Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse
to either Party. Upon such determination that any term or other provision is invalid, illegal or
unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the Parties as closely as possible in an acceptable manner to the end that
the transactions contemplated hereby are fulfilled to the fullest extent permitted under applicable
Law.

7.3 Successors and Assigns. Neither Party shall assign, transfer or otherwise alienate any
or all of its rights or interest under this Agreement without the express prior written consent of
the other Party hereto. This Agreement shall be binding upon and inure to the benefit of the
Parties hereto and their respective successors and permitted assigns, and any permitted assignee
shall agree to perform the obligations of the assignor of this Agreement. Any attempted transfer,
assignment or alienation in violation of this Section 7.3 shall be invalid and ineffective ab
initio.

7.4 Counterparts. This Agreement may be executed in separate counterparts, each of which
shall be deemed an original and all of which, when taken together, shall constitute one and the
same agreement.

7.5 Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario and the laws of Canada applicable therein. If any dispute
arises out of or in connection with this Agreement, the Parties irrevocably (a) consent and submit
to the exclusive jurisdiction of the Courts of the Province of Ontario, (b) waive any objection to
that choice of forum based on venue or to the effect that the forum is not convenient, and (c)
waive to the fullest extent permitted by Law any and all right to trial or adjudication by jury.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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          IN WITNESS WHEREOF the Parties hereto have executed this Agreement.

	 	 	 	 	 	 	 
	 	 	ATS AUTOMATION TOOLING SYSTEMS INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PHOTOWATT TECHNOLOGIES INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: [·]	 	 
	 	 	Title:   [·]

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