Document:

EX-10.4(k)

 Exhibit 10.4(k) 

STOCK APPRECIATION RIGHTS AGREEMENT 
 PURSUANT TO THE 
 MASONITE WORLDWIDE HOLDINGS INC. 2009 EQUITY INCENTIVE
PLAN 
 FOR UNITED STATES EXECUTIVES 
 * * * * * 
 Participant: 
 Grant Date: 
 Base Price: 
 Number of Shares subject to this SAR: 
 * * * * * 

THIS STOCK APPRECIATION RIGHTS AGREEMENT (this “Agreement”), dated as of the Grant Date specified above, is entered into
by and between Masonite Inc., a British Columbia corporation (the “Company”), and the Participant specified above, pursuant to the Masonite Worldwide Holdings Inc. 2009 Equity Incentive Plan (the “Plan”), which is
administered by the Committee; and 
 WHEREAS, the Participant is a participant in the Company’s Supplemental Variable
Incentive Plan (“SVIP”); 
 WHEREAS; the Participant has agreed to forfeit his rights under the SVIP pursuant
to the Exchange Offer Memorandum, dated December 12, 2009 (the “Exchange Memorandum”) in exchange for this award of stock appreciation rights (“SARs”); 

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth and for other good and valuable
consideration, the parties hereto hereby mutually covenant and agree as follows: 
 1. Incorporation By Reference; Plan
Document Receipt. This Agreement is subject in all respects to the terms and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly
intended not to apply to the grant of the SAR hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were each expressly set forth herein. The Participant hereby acknowledges receipt of a true
copy of the Plan and that the Participant has read the Plan carefully and fully understands its content. In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control. 

 2. Grant of SAR. The Company hereby grants to the Participant as of the Grant
Date a SAR on the number of Shares specified above. This SAR represents the right, upon exercise, to receive a number of Shares with a Fair Market Value on the date of exercise equal to the product of (i) the aggregate number of Shares with
respect to which this SAR is exercised and (ii) excess of (A) the Fair Market Value of a Share as of the date of exercise over (B) the SAR Base Price specified above. 

3. Vesting and Exercisability of SAR. 
 (a) Vesting. Except as otherwise provided in this Section 3, the SAR subject to this grant shall vest as follows, provided that the Participant is then employed by the Company and/or one of its
Subsidiaries or Affiliates on each such vesting date: (i) fifty percent (50%) of the SARs subject to this grant shall be eligible to vest on April 1, 2011 based on the achievement of objective performance criteria as set forth on a
schedule to be delivered to the Participant by the Committee no later than March 1, 2010 relating to the Company’s 2010 fiscal year and (ii) fifty percent (50%) of the SARs subject to this grant shall be eligible to vest on
April 1, 2012 based on the achievement of objective performance criteria as set forth on a schedule to be delivered to the Participant by the Committee no later than March 1, 2011 relating to the Company’s 2011 fiscal year. The
performance criteria for any particular performance period shall be determined in good faith by the Board, after consultation with the Company’s Chief Executive Officer. SARs eligible to vest in a particular performance period shall be
forfeited as of the end of the performance period if the applicable performance criteria have not been met for such performance period. 
 (b) Certain Terminations. In the event of a Participant’s termination of employment (i) due to death, (ii) due to Disability, (iii) by the Company without Cause or (iv) by
the Participant for Good Reason, the unvested portion of this SAR shall vest pro rata based upon (x) the number of full or partial quarters worked during the year of such termination and (y) the Company’s actual performance with
respect to the prorated performance targets for such quarter(s). 
 (c) Change in Control. Any unvested portion of this
SAR that have not been previously forfeited shall immediately become vested upon a Change in Control; provided the Participant is continuously employed by the Company or its Subsidiaries through such date. 

(d) Exercisability. To the extent that this SAR has vested, subject to Section 4, the SAR shall become exercisable, in whole
or in part, upon the first to occur of the following: (i) an underwritten public offering of common stock by the Company pursuant to an effective registration statement under the Securities Act of 1933, as amended,
(ii) January 1, 2013, (iii) a Change in Control, and (iv) a termination of the Participant’s employment. 
 (e) Expiration. Unless earlier terminated in accordance with the terms and provisions of the Plan and/or this Agreement, this SAR shall expire and shall no longer be exercisable after the
expiration of ten (10) years from the Grant Date. 

  
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 4. Termination. 

(a) Termination of Employment. In the event of a Participant’s termination of employment for any reason, any portion of this
SAR that is held by such Participant that is vested and exercisable at the time of such termination must be exercised by the Participant within 30 days from the date of such termination, but in no event beyond the expiration of the stated term of
this SAR. Following the expiration of such 30-day period, any portion of this SAR, whether vested or unvested, shall thereupon terminate and expire. 
 (b) Unvested SARs. Any portion of this SAR that is not vested as of the date of a Participant’s termination for any reason shall terminate and expire as of the date of such termination.

 5. Dividends and Other Distributions. If the Company makes an Extraordinary Distribution then, to reflect such
Extraordinary Distribution, this SAR shall be adjusted to retain the pre-Extraordinary Distribution spread by (i) decreasing the Base Price, in a manner consistent with Section 409A of the Code or (ii) if the Base Price, as adjusted,
would be less than twenty-five (25%) of the value of the Company’s common stock post-Extraordinary Distribution, the Participant shall be granted dividend equivalent rights for the balance of the lost spread, such rights to be payable in
cash upon vesting of the related SAR. Any adjustment described in clause (i) shall be implemented in accordance with, and to the extent permitted by, Treasury Regulation § 1.409A-1(b)(5)(v)(D). 

6. Method of Exercise and Payment. Subject to Section 15.8 of the Plan, this SAR shall be exercised by the Participant
by delivering to the Company or its designated agent on any business day a written notice, in such manner and form as may be required by the Company, specifying the number of Shares subject to this SAR the Participant then desires to exercise (the
“Exercise Notice”). 
 7. Non-transferability. 

(a) Restriction on Transfers. Except as provided in Section (b) below, this SAR, and any rights or interests therein,
(i) shall not be sold, exchanged, transferred, assigned or otherwise disposed of in any way at any time by the Participant (or any beneficiary(ies) of the Participant), other than by testamentary disposition by the Participant or by the laws of
descent and distribution, (ii) shall not be pledged or encumbered in any way at any time by the Participant (or any beneficiary(ies) of the Participant) and (iii) shall not be subject to execution, attachment or similar legal process. Any
attempt to sell, exchange, pledge, transfer, assign, encumber or otherwise dispose of this SAR, or the levy of any execution, attachment or similar legal process upon this SAR, contrary to the terms of this Agreement and/or the Plan, shall be null
and void and without legal force or effect. 
 (b) Permissible Transfers. During the Participant’s lifetime, the
Participant may, with the consent of the Committee, transfer without consideration all or any portion of this SAR to one or more members of his/her Immediate Family, to a trust established for the exclusive benefit of one or more members of his/her
Immediate Family, to a partnership in which all the partners are members of his/her Immediate Family, or to a limited liability company in which all the members are members of his/her Immediate Family. 

(c) Company Rights. Notwithstanding anything herein to the contrary, the Participant, and any permitted transferee, shall be
subject to the Company’s call rights and rights of first refusal set forth in Annex A. 

  
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 8. Entire Agreement; Amendment. This Agreement, together with the Plan and the
Exchange Memorandum contains the entire agreement between the parties hereto with respect to the Participant’s forfeiture of his rights under the SVIP in exchange for this SAR award, and supersedes all prior agreements or prior understandings,
whether written or oral, between the parties relating to such subject matter. The Committee shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the Plan. This
Agreement may also be modified or amended by a writing signed by both the Company and the Participant. The Company shall give written notice to the Participant of any such modification or amendment of this Agreement as soon as practicable after the
adoption thereof. 
 9. Management Stockholder’s Agreement. In consideration of this RSU award, the
Participant agrees to be bound by the terms of Annex A attached hereto, which is incorporated in, and made a part of, this Agreement. 
 10. Acknowledgment of Employee. The award of this SAR does not entitle Participant to any benefit other than that granted under this Agreement. Any benefits granted under this Agreement are
not part of the Participant’s ordinary salary, and shall not be considered as part of such salary in the event of severance, redundancy or resignation. Participant understands and accepts that the benefits granted under this Agreement are
entirely at the discretion of the Company and that the Company retains the right to amend or terminate this Agreement and the Plan at any time, at its sole discretion and without notice. 

11. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida,
without reference to the principles of conflict of laws thereof. 
 12. Withholding of Tax. 

(a) General. As a condition to the distribution of Shares to the Participant, the Participant shall be required to pay in cash, or
to make other arrangements satisfactory to the Company (including, without limitation, authorizing withholding from payroll and any other amounts payable to the Participant), an amount sufficient to satisfy any federal, provincial, state, local and
foreign taxes of any kind (including, but not limited to, the Participant’s FICA and SDI obligations) which the Company, in its sole discretion, deems necessary to comply with the Code and/or any other applicable law, rule or regulation with
respect to the SAR. Unless the tax withholding obligations of the Company are satisfied, the Company shall have no obligation to issue a certificate or book-entry transfer for such Shares. 

(b) Shares Not Publicly Traded. Notwithstanding anything to the contrary in Section 12(a), in the event the Shares are not listed
for trading on an established securities 

  
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exchange on the date the SARs are required to be settled then the Company shall, at the request of the Participant, deduct or withhold Shares having a Fair Market Value equal to the minimum
amount required to be withheld to satisfy any federal, state, local and foreign taxes of any kind (including, but not limited to, the Participant’s FICA and SDI obligations) which the Company, in its sole discretion, deems necessary to comply
with the Code and/or any other applicable law, rule or regulation with respect to this SAR. 
 13. No Right to
Employment. Any questions as to whether and when there has been a termination of such employment and the cause of such termination shall be determined in the sole discretion of the Committee. Nothing in this Agreement shall interfere with or
limit in any way the right of the Company to terminate the Participant’s employment or service at any time, for any reason and with or without cause. 
 14. Notices. Any Exercise Notice or other notice which may be required or permitted under this Agreement shall be in writing, and shall be delivered in person or via facsimile transmission,
overnight courier service or certified mail, return receipt requested, postage prepaid, properly addressed as follows: 
 (a) If
such notice is to the Company, to the attention of the General Counsel of the Company or at such other address as the Company, by notice to the Participant, shall designate in writing from time to time. 

(b) If such notice is to the Participant, at his/her address as shown on the Company’s records, or at such other address as the
Participant, by notice to the Company, shall designate in writing from time to time. 
 15. Compliance with Laws.
The issuance of this SAR (and the Shares upon exercise of this SAR) pursuant to this Agreement shall be subject to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws, rules and regulations
(including, without limitation, the provisions of the Securities Act of 1933, as amended, the 1934 Act and in each case any respective rules and regulations promulgated thereunder) and any other law or regulation applicable thereto. The Company
shall not be obligated to issue this SAR or any of the Shares pursuant to this Agreement if any such issuance would violate any such requirements. 
 16. Binding Agreement; Assignment. This Agreement shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns. The Participant shall not
assign (except as provided by Section 7 hereof) any part of this Agreement without the prior express written consent of the Company. 
 17. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

 18. Headings. The titles and headings of the various sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed to be a part of this Agreement. 

  
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 19. Further Assurances. Each party hereto shall do and perform (or shall cause
to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the
purposes of this Agreement and the Plan and the consummation of the transactions contemplated thereunder. 
 20.
Severability. The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity,
legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law. 

21. Definitions. Any capitalized term not defined in this Agreement shall have the same meaning as is ascribed thereto in
the Plan. For purposes of this Agreement, the following words and phrases shall have the following meanings, unless a different meaning is plainly required by the context: 
 (a) “Cause” means (i) in the event the Participant is a party to an employment agreement between the Participant and the Company on the Grant Date (the “Employment
Agreement”), “Cause” as defined under the Employment Agreement as in effect on the Grant Date; or (ii) in the event the Participant is not a party to the Employment Agreement on the Grant Date, “Cause” shall have
the meaning set forth in the Plan. 
 (b) “Good Reason” means (i) in the event the Participant is a party
to the Employment Agreement “Good Reason” as defined under the Employment Agreement as in effect on the Grant Date; or (ii) in the event the Participant is not a party to the Employment Agreement as in effect on the Grant Date,
“Good Reason” shall have the meaning set forth in the Plan. 
 [Remainder of Page Intentionally Left Blank]

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

			
	MASONITE INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	PARTICIPANT
	
	  

		
	Name:	 	  

 

			
		
	Social Security Number:	 	  

 SAR AGREEMENT SIGNATURE PAGE 

 ANNEX A 

As a condition to (i) receiving an Award under the Plan and (ii) receiving any Stock in settlement of an Award, the Participant
hereby agrees that the Participant will be bound by and will comply with the provisions of this Annex A. 
 1.
Definitions. Capitalized terms not otherwise defined herein shall have the meaning assigned to them in the Masonite Worldwide Holdings Inc. 2009 Equity Incentive Plan (the “Plan”). 

2. Issuance of Stock and Awards. Subject to the terms and conditions hereinafter set forth and as set forth in the Plan or any
other Company plan providing for the grant, purchase or award of Stock and the Award Agreement(s), as of the Effective Date, the Company is issuing Awards to the Participant. The Parties are entering into Award Agreement(s) concurrently with the
issuance of the Awards and the execution and delivery of this Agreement. 
 3. Participant’s Representations, Warranties
and Agreements. 
 (a) In addition to agreeing to and acknowledging the restrictions on Transfer of the Stock set forth in
Sections 4 and 5, prior to the date on which the Company becomes subject to the reporting requirements under the Exchange Act (or otherwise becomes a reporting company under the Exchange Act), if the Participant is an Affiliate of the Company, the
Participant also agrees and acknowledges that notwithstanding the provisions in Section 4, if the Participant has received written notification of such requirement, the Participant will not Transfer any shares of Stock to any Person unless
counsel for the Participant (which counsel shall be reasonably acceptable to the Company) shall have furnished the Company with an opinion, reasonably satisfactory in form and substance to the Company, that registration of such Transfer is not
required under applicable law because of the availability of an exemption from registration under applicable law. 
 Notwithstanding the
foregoing, the Company acknowledges and agrees that no opinion of counsel is required in connection with: (x) a Transfer permitted by or made pursuant to Sections 4(a), 5, or 6 hereof, Section 9 of the Shareholders Agreement, or
Section 22 of the Articles, or (y) a Transfer permitted upon the death or Disability of the Participant to the Participant’s Estate or a Transfer permitted to the executors, administrators, testamentary trustees, legatees or
beneficiaries of a person who has become a holder of the Stock in accordance with the terms of this Agreement; provided that it is expressly understood that any such transferee shall be bound by the provisions of this Agreement. 

(b) From and after the date hereof and until such time as the Transfer restrictions set forth in Section 4 no longer apply to such
Stock and the Company has reissued a certificate representing such Stock, in addition to any other requirements set forth in the Shareholders Agreement or in any other applicable document, the certificate (or certificates) representing the shares of
Stock shall bear legends in substantially the following form: 
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY STATE 

 
SECURITIES LAWS AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OF 1933 OR AN EXEMPTION THEREFROM AND, IN EACH
CASE, IN COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION COMPLIES WITH THE PROVISIONS OF THE EQUITY GRANT AGREEMENT DATED AS OF [DATE] BETWEEN MASONITE INC.
(THE “COMPANY”) AND THE INDIVIDUAL NAMED ON THE FACE HEREOF (A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY).” 
 (c) The Participant acknowledges that he/she has been advised that (i) a restrictive legend in the form heretofore set forth shall be placed on the certificates representing the shares of Stock and
(ii) a notation shall be made in the appropriate records of the Company indicating that the Stock is subject to restrictions on Transfer and appropriate stop Transfer restrictions will, if applicable, be issued to the Company’s transfer
agent with respect to the Stock. The Participant acknowledges that the Stock may be subject to restricted periods or seasonings periods under applicable securities legislation, regulations and rules of each of the provinces and territories in Canada
and the blanket rulings, orders, policy statements and written interpretations issued by the regulatory authorities administering such legislation (collectively, “Canadian Securities Laws”) and that he or she must not transfer, sell
or otherwise trade the Stock unless permitted under Canadian Securities Laws. If a Participant is an Affiliate of the Company, the Participant also acknowledges that (1) the Stock must be held indefinitely and the Participant must continue to
bear the economic risk of the investment in the Stock unless it is subsequently registered under the Securities Act and any other applicable securities laws or an exemption from such registration is available, (2) when and if the Stock may be
disposed of without registration in reliance on Rule 144 of the rules and regulations promulgated under the Securities Act, such disposition can be made only in limited amounts in accordance with the terms and conditions of such rule and (3) if
the Rule 144 exemption is not available, public sale without registration will require compliance with some other exemption under the Securities Act and any other applicable securities laws. 

(d) If any shares of Stock are to be disposed of in accordance with an applicable resale exemption or otherwise, the Participant shall
promptly notify the Company of such intended disposition in accordance with Section 4 and shall deliver to the Company at, or prior to, the time of such disposition such other documentation as the Company may reasonably request in connection
with such sale and, in the case of a disposition pursuant to Rule 144, shall deliver to the Company an executed copy of any notice on Form 144 required to be filed with the SEC. 

(e) The Participant agrees that, if any shares of Stock are offered in a Public Offering (other than registration of securities issued on
Form S-8, S-4 or any successor or similar 

  
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form), the Participant will not effect any public sale or distribution of any shares of Stock (except pursuant to the prospectus or registration statement for such Public Offering) during the
“Lock-Up Period,” unless otherwise agreed to in writing by the Company. The “Lock-Up Period” is the period (i) beginning on the date of the receipt of a notice from the Company that the Company has filed, or imminently
intends to file, a prospectus or registration statement for a Public Offering and (ii) ending 180 days (or such shorter period as may be consented to by the managing underwriter or underwriters) in the case of the initial Public Offering and
ninety (90) days (or such shorter period as may be consented to by the managing underwriter or underwriters, if any) in the case of any other Public Offering after, the effective date of the applicable registration statement. 

(f) The Participant represents and warrants that (i) with respect to the Awards, the Participant has received and reviewed the
information relating to the Stock, including having received and reviewed the documents thereto, certain of which documents set forth the rights, preferences and restrictions relating to the Awards and the Stock underlying the Awards and
(ii) the Participant has been given the opportunity to obtain any additional information or documents and to ask questions and receive answers about such information, the Company and the business and prospects of the Company which it deems
necessary to evaluate the merits and risks related to his/her investment in the Stock and to verify the information contained in the information received as indicated in this Section 3(f), and the Participant has relied solely on such
information. 
 (g) The Participant further represents and warrants that (i) his/her financial condition will be such that
the Participant can afford to bear the economic risk of holding the Stock for an indefinite period of time and will have adequate means for providing for his/her current needs and personal contingencies, (ii) the Participant can afford to
suffer a complete loss of his/her investment in the Stock, (iii) the Participant understands and has taken cognizance of all risk factors related to the Stock and (iv) his/her knowledge and experience in financial and business matters are
such that the Participant is capable of evaluating the merits and risks of his/her acquisition of the Stock as contemplated by the Plan. 
 4. Transferability of Stock/Awards. 
 (a) The Participant agrees that until
May 30, 2012, he/she will not directly or indirectly offer, transfer, sell, assign, pledge, hypothecate or otherwise dispose of (any of the foregoing acts being referred to herein as a “Transfer”) any Stock issuable upon
exercise or settlement of any Award or of any other equity-related incentive award granted by the Company or any of its direct or indirect subsidiaries (collectively referred to as “Stock”); provided, however, that the
Participant may Transfer shares of Stock during such time pursuant to one of the following exceptions: (i) Transfers permitted by this Section 4, (ii) Transfers permitted by Sections 5, 6, or 7 hereof, Section 9 of the
Shareholders Agreement, or Section 22 of the Articles, (iii) Transfers pursuant to a (final) prospectus under Canadian Securities Laws or pursuant to an effective registration statement under the Securities Act and has been registered
under all applicable securities laws, or (iv) other Transfers permitted by the Board. No Transfer of Stock in violation hereof shall be made or recorded on the books of the Company and any such Transfer shall be void ab initio and of no effect.

  
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 (b) Notwithstanding the foregoing, during the period that substantially similar restrictions
set forth in the Company’s Articles of Continuance apply to the parties thereto, no Participant shall Transfer any Stock to any Person: 
 (i) if the Company reasonably determines that such Transfer would, if effected, result in the Company having more than 290 holders of record (as such concept is understood for purposes of
Section 12(g) of the Exchange Act and any relevant rules promulgated thereunder), unless the Company is already subject to the reporting obligations under Section 13 or 15(d) of the Exchange Act and any relevant rules promulgated
thereunder; and 
 (ii) unless (A) the certificates representing such Stock bear legends as provided in Section 3(b)
for so long as such legends are applicable, and (B) such transferee (1) shall have executed and delivered to the Company, as a condition precedent to any acquisition of such shares of Stock, an instrument in form and substance satisfactory
to the Company confirming that such transferee takes such shares of Stock subject to all the terms and conditions of this Agreement and (2) agrees to be bound by the terms of this Agreement. 

The Company shall not transfer upon its books any Stock to any Person except in accordance with this Agreement. 

(c) Authority of Board. Nothing contained in this Section 4 shall limit the authority of the Board to take such other action
to the extent permitted by law as it deems necessary or advisable to preserve the Company’s status as a non-reporting company under the Exchange Act. 
 5. The Participant’s Right to Resell Stock and Awards to the Company. 

(a) Except as otherwise provided herein and for the purpose of providing a market for the Common Stock or Awards for the applicable
Participant Entities, if, prior to the later of May 30, 2012 and a Public Offering, the Participant is still in the employ of the Company (and/or, if applicable, its subsidiaries) and the Participant’s employment is terminated as a result
of the death or cessation of active employment due to Disability of the Participant, then the applicable Participant Entity, shall, for one year (the “Put Period”) following the date of such termination, have the right to:

 (i) With respect to the Stock, sell to the Company, and the Company shall be required to purchase, on one occasion, all of
the Stock then held by the applicable Participant Entities at a per share of Stock price equal to the Fair Value Per share of Stock on the applicable repurchase date (the “Section 5 Repurchase Price”). 

(ii) With respect to Stock Options or SARs, receive from the Company, on one occasion, in exchange for all of the vested and/or
exercisable Stock Options or SARs then held by the applicable Participant Entities, if any, a number of shares of Stock equal to the quotient of (x) the product of (A) the excess, if any, of the Section 5 Repurchase Price over the
option exercise price or SAR base price, as applicable, and (B) the number of vested and/or exercisable shares of Stock underlying the Stock Options or SARs, divided (y) the Section 5 Repurchase Price, which Awards shall be terminated
in exchange for such payment (the “Net 

  
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Settled Stock”). In the event the foregoing Awards have a zero value, all outstanding exercisable Awards shall be automatically terminated without any payment in respect thereof. In
the event that the Participant Entities do not exercise the foregoing rights, all exercisable but unvested and/or unexercised Awards shall terminate pursuant to the terms of the Award Agreement. All unvested and/or unexercisable Awards held by the
applicable Participant Entities shall terminate without payment immediately upon termination of employment. 
 (b) For thirty
(30) days following the date that is six (6) months after the receipt by the applicable Participant Entities of the Net Settled Stock (the “Settled Stock Put Period”) (which period may, for the avoidance of doubt, extend
after the expiration of the Put Period), sell to the Company, and the Company shall be required to purchase, on one occasion, all such Net Settled Stock held by the applicable Participant Entities, at a per share price equal to the Section 5
Repurchase Price. 
 (c) In the event the applicable Participant Entities intend to exercise their rights pursuant to
Section 5(a), the Participant Entities shall send written notice to the Company, (i) at any time during the Put Period, of their intention to sell Stock in exchange for the payment referred to in Section 5(a)(i) and/or to exchange
such Awards for Net Settled Stock or (ii) at any time during the Settled Stock Put Period, of their intention to sell the Net Settled Stock in exchange for the payment referred to in Section 5(a)(ii) (the “Redemption
Notice”). The completion of the purchases or exchanges shall take place at the principal office of the Company on the tenth (10th) business day after the giving of the Redemption Notice. The Section 5 Repurchase Price shall be
paid by delivery to the applicable Participant Entities of a certified bank check or checks in the appropriate amount payable to the order of each of the applicable Participant Entities (or by wire transfer of immediately available funds, if the
Participant Entities provide to the Company wire transfer instructions) and the Net Settled Stock shall be delivered to the applicable Participant Entities, both against delivery of certificates or other instruments representing the Stock so
purchased and appropriate documents canceling the Awards so terminated appropriately endorsed or executed by the applicable Participant Entities or any duly authorized representative. 

(d) Notwithstanding anything in Section 5(a) to the contrary and subject to Section 11, if there exists and is continuing a
default or an event of default on the part of the Company or any subsidiary of the Company under any loan, guarantee or other agreement under which the Company or any subsidiary of the Company has borrowed money or if the repurchase by the Company
referred to in Section 5(a) would result in a default or an event of default on the part of the Company or any subsidiary of the Company under any such agreement or if a repurchase would not be permitted under Section 30(2) of the Canada
Business Corporations Act or would otherwise violate the Canada Business Corporations Act (or if the Company reincorporates in another jurisdiction, any applicable statutes of such jurisdiction) (each such occurrence being an
“Event”), the Company shall not be obligated to repurchase any of the Stock from the applicable Participant Entities until the first business day which is ten (10) calendar days after all of the foregoing Events have ceased to
exist (the “Repurchase Eligibility Date”); provided, however, that (i) the number of shares of Stock subject to repurchase under this Section 5(d) shall be that number of shares of Stock as specified in the Redemption
Notice and held by the applicable Participant Entities at the time of delivery of the Redemption Notice in accordance with Section 5(c) hereof. Notwithstanding the foregoing and subject to Section 6(d), if an Event exists and is continuing
for ninety (90) days, the Participant Entities shall be permitted by written notice to rescind any Redemption Notice. 

  
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 6. The Company’s Option to Purchase Stock and Awards of Participant Upon Certain
Terminations. 
 (a) Termination for Cause. Except as otherwise provided herein, if, prior to the later of
May 30, 2012 and a Public Offering, (1) the Participant’s employment is terminated by the Company for Cause, (2) the beneficiaries of the Participant’s Trust shall include any person or entity other than the Participant,
his/her spouse (or ex-spouse) or his/her parents’ lineal descendants (including adopted children) or (3) the Participant shall otherwise effect a Transfer of any of the shares of Stock other than as permitted in this Agreement (other than
as may be required by applicable law or an order of a court having competent jurisdiction) after notice from the Company of such impermissible Transfer and a reasonable opportunity to cure such Transfer (each, a “Section 6(a) Call
Event”): 
 (i) With respect to the Stock, the Company may purchase all or any portion of the Stock then held by the
applicable Participant Entities at a per share purchase price equal to the lesser of (x) the Fair Value per Share and (y) the per Share amount paid by the Participant Entities to the Company to acquire such Share (any such applicable
repurchase price (the “Section 6(a) Repurchase Price”); and 
 (ii) All unvested and/or unexercised Awards
held by the applicable Participant Entities shall terminate, without payment, immediately upon the occurrence of a Section 6(a) Call Event or on such other date provided in the Award Agreement. 

(b) Termination for Other than Cause. Except as otherwise provided herein, if, prior to the later of May 30, 2012 and a
Public Offering, the Participant’s employment is terminated for a reason other than by the Company for Cause (each, a “Section 6(b) Call Event”), with respect to Stock held by the Participant, the Company may purchase all or
any portion of the shares of Stock then held by the applicable Participant Entities at a per share price equal to the Fair Value per share on the date the Call Notice is given, (the “Section 6(b) Repurchase Price”). 

(c) Call Notice. The Company shall have a period (the “Call Period”) of ninety (90) days from the six
(6) month anniversary of the last date of delivery to the Participant of any Share deliverable pursuant to any outstanding Award (or, if later, with respect to a Section 6(a) Call Event, the date after discovery of, and the applicable cure
period for, an impermissible Transfer constituting a Section 6(a) Call Event) in which to give notice in writing to the Participant of its election to exercise its rights and obligations pursuant to this Section 6 (a “Call
Notice”). The completion of the purchases pursuant to the Call Notice shall take place at the principal office of the Company on the tenth (10th) business day after delivery of such Call Notice. The applicable Repurchase Price
(including any payment with respect to Awards described in this Section 6) shall be paid by delivery to the applicable Participant Entities of a certified bank check or checks in the appropriate amount payable to the order of each of the
applicable Participant Entities (or by wire transfer of immediately available funds, if the Participant Entities provide to the Company wire transfer instructions) against delivery of 

  
 6 

 
certificates or other instruments representing the Stock so purchased and appropriate documents canceling the Awards so terminated, appropriately endorsed or executed by the applicable
Participant Entities or any duly authorized representative. 
 (d) Delay of Call. Notwithstanding any other provision of
this Section 6 to the contrary and subject to Section 11, if there exists and is continuing a default or an event of default on the part of the Company or any subsidiary of the Company under any bona fide loan, guarantee or other agreement
with an independent third party under which the Company or any subsidiary of the Company has borrowed money which prohibits the Company from purchasing any of the Stock or the Awards or if the repurchase referred to in Section 6(a) and
Section 6(b) would result in a default or an event of default on the part of the Company or any subsidiary of the Company under any such agreement or if a repurchase would not be permitted if there exists and is continuing any Event, the
Company shall be entitled to delay the repurchase of any of the Stock or the Awards (pursuant to a Call Notice timely given in accordance with Section 6(c) hereof) from the applicable Participant Entities until the first business day which is
ten (10) calendar days after such Event has ceased to exist; provided, however, that the number of shares of Stock subject to repurchase under this Section 6 shall be that number of shares of Stock held by the applicable
Participant Entities at the time of delivery of (and as set forth in) a Call Notice in accordance with Section 6(c) hereof. All unvested and/or unexercisable Awards as of the date of a Call Notice shall continue to vest and/or become
exercisable until the repurchase of such Awards pursuant to such Call Notice; provided that to the extent that any Awards vest and/or are exercised after the date of such Call Notice, the number of shares of Stock subject to repurchase shall
be increased by the same proportion of Stock subject to the Call Notice calculated by multiplying (x) the number of shares of Stock that are acquired after the date of the Call Notice by (y) the quotient of (I) the number of shares of
Stock to set forth in the Call Notice over (II) the aggregate number of shares of Stock held by the Participant on the date of the Call Notice. Notwithstanding the foregoing, if an Event exists and is continuing for ninety (90) days, the
Participant Entities shall be permitted by written notice to cause the Company to rescind any Call Notice but the Company shall have another thirty (30) days from the date of such the Event ceases to exist to give another Call Notice on the
terms applicable to the first Call Notice. 
 7. Adjustment of Repurchase Price; Definitions. 

(a) Adjustment of Repurchase Price. In determining the Repurchase Price of the Stock and Awards, appropriate adjustments shall be
made for any stock dividends, splits, combinations, recapitalizations or any other adjustment in the number of outstanding shares of Stock and Common Stock in order to maintain, as nearly as practicable, the intended operation of the provisions of
Section 6. 
 (b) Definitions. All capitalized terms used in this Agreement and not defined herein shall have such
meaning as such terms are defined in the Plan. Terms used herein and as listed below shall be defined as follows: 

“Agreement” means this Annex A. 
 “Articles” means the Masonite Worldwide Holdings Inc. Notice of Articles and Articles of Continuance, as the same may be amended from time to time. 

  
 7 

 “Award(s)” means equity awards, including, without limitation, SARs and
RSUs, which may be settled in shares of Common Stock and granted to the Participant after the Effective Date under the Plan or any other Company plan providing for the grant, purchase or award of Common Stock. 

“Award Agreement” means an agreement entered into by and between the Company and the Participant in respect of Awards.

 “Call Events” shall mean, collectively, Section 6(a) Call Events and Section 6(b) Call Events.

 “Call Notice” shall have the meaning set forth in Section 6(c) hereof. 

“Call Period” shall have the meaning set forth in Section 6(c) hereof. 

“Canadian Securities Laws” shall have the meaning set forth in Section 3(c) hereof. 

“Common Stock” means the Company’s common stock or any security issued by Masonite Inc. or any successor in
exchange or in substitution therefore. 
 “Contingent Awards” shall have the meaning set forth in
Section 8(a). 
 “Event” shall have the meaning set forth in Section 5(d) hereof. 

“Excess Price” shall mean the difference between (x) the Fair Value on the relevant date and, (y) the exercise
price, with respect to a Stock Option, or the base price, with respect to a SAR. 
 “Exchange Act” shall mean
the Securities Exchange Act of 1934, as amended and the rules and regulations of the SEC promulgated thereunder. 

“Fair Value” shall mean, prior to an initial Public Offering, the fair market value of the Stock as determined in good
faith by the Board (or a consultant, financial advisor or such other entity retained by the Board to make such determination). Upon request, the Company will provide to the Participant, strictly for use in determining whether to seek an appraisal
its calculation of Fair Value, a description of the methodology and metrics utilized by the Company in making such determination. If the Participant believes that the amount determined by the Board to be the Fair Value is less than the amount that
the Participant believes to be the Fair Value and the aggregate amount in dispute exceeds $50,000, the Participant may elect to direct the Company to obtain an appraisal of the Fair Value, which appraisal shall be prepared by a qualified independent
appraiser, mutually selected by the Company and the Participant. If the Company and the Participant are unable to agree on such appraiser, they shall each select a qualified independent appraiser, and the two such appraisers shall select a third
qualified independent appraiser who has not provided any services to either of the Company or the Participant within twenty-four (24) months preceding the engagement for such appraisal, which third appraiser shall prepare the determination of
Fair Value. Such election must be in writing and given to the Company within fifteen (15) days after the Participant receives the Board’s 

  
 8 

 
determination of Fair Value. The determination of the appraiser shall be a final and binding determination of Fair Value. If such appraiser determines Fair Value to be 105% or more of the Fair
Value determined by the Board, then the Company shall pay the cost of all such appraisers. If such appraiser determines the Fair Value to be less than 105% of the Fair Value determined by the Board, then the Participant shall pay the cost of all
such appraisers. 
 “Group” shall mean “group,” as such term is used for purposes of
Section 13(d) or 14(d) of the Exchange Act. 
 “Lock-Up Period” shall have the meaning set forth in
Section 3(e) hereof. 
 “Maximum Repurchase Amount” shall have the meaning set forth in Section 11
hereof. 
 “Net Settled Stock” shall have the meaning set forth in Section 5(a)(ii) hereof. 

“Other Stockholder” shall mean the persons that own Common Stock, other than the Participant. 

“Participant Company” means any entity controlled by the Participant that is a party to, or member of, a Service
Agreement. 
 “Participant Entities” shall mean the Participant’s Trust, the Participant and the
Participant’s Estate, collectively. 
 “Participant’s Estate” shall mean the conservators, guardians,
executors, administrators, testamentary trustees, legatees or beneficiaries of the Participant. 
 “Participant’s
Trust” shall mean a partnership, limited liability company, corporation, trust or custodianship, the beneficiaries of which may include only the Participant, his/her spouse (or ex-spouse) or his/her parents’ lineal descendants
(including adopted) or, if at any time after any such Transfer there shall be no then living spouse or lineal descendants, then to the ultimate beneficiaries of any such trust or to the estate of a deceased beneficiary. 

“Party(ies)” means the Company and the Participant. 

“Permitted Transferee” means any person who could be a beneficiary under the Participant’s Trust. 

“Person” means a “person,” as such term is used for purposes of Section 13(d) or 14(d) of the Exchange
Act. 
 “Plan” shall have the meaning set forth in Section 1 hereof. 

“Public Offering” shall mean any sale of Stock to the public subsequent to the date hereof pursuant to a (final)
prospectus under Canadian Securities Laws or pursuant to an effective registration statement under the Securities Act which has been declared effective by the SEC (other than a registration statement on Form S-4, S-8 or any other similar form).

  
 9 

 “Put Period” shall have the meaning set forth in Section 5(a) hereof.

 “Redemption Notice” shall have the meaning set forth in Section 5(c) hereof. 

“Rejected Awards” shall have the meaning set forth in Section 8(d). 

“Repurchase Eligibility Date” shall have the meaning set forth in Section 5(d) hereof. 

“Repurchase Price” shall mean the amount to be paid in respect of the Stock and Awards to be purchased by the Company
pursuant to Section 6(a) or 6(b), as applicable. 
 “Restricted Stock” means restricted stock granted
pursuant to the Plan or any other plan of the Company or its Affiliates. 
 “RSU” means a restricted stock unit
granted pursuant to the Plan or any other plan of the Company or its Affiliates. 
 “SAR” means a stock
appreciation right granted pursuant to the Plan or any other plan of the Company or its Affiliates. 
 “SEC”
shall mean the Securities and Exchange Commission. 
 “Section 5 Repurchase Price” shall have the meaning set
forth in Section 5(a)(i) hereof. 
 “Section 6(a) Call Event” shall have the meaning set forth in
Section 6(a) hereof. 
 “Section 6(b) Call Event” shall have the meaning set forth in Section 6(b)
hereof. 
 “Section 6(a) Repurchase Price” shall have the meaning set forth in Section 6(a) hereof.

 “Section 6(b) Repurchase Price” shall have the meaning set forth in Section 6(b) hereof. 

“Section 409A Deferred Compensation” shall have the meaning set forth in Section 8(a). 

“Section 409A Safe Harbor Date” shall have the meaning set forth in Section 8(c). 

“Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the SEC promulgated
thereunder. 
 “Separate Agreement” shall have the meaning set forth in Section 19 hereof. 

“Service Agreement” means a contract by and between the Company or any Company Affiliate and the Participant or
Participant Company pursuant to which the Company provides services to the Participant or the Participant Company. 

  
 10 

 “Settled Stock Put Period” shall have the meaning set forth in
Section 5(b) hereof. 
 “Shareholders Agreement” shall mean the Masonite Worldwide Holdings Inc.
Shareholders Agreement. 
 “Stock” shall have the meaning set forth in Section 4(a) hereof. 

“Stock-Based Awards” means the right of any kind to receive Stock or benefits measured by the value of a number of
shares of Common Stock, and each award of any kind consisting of Stock, in each case, granted pursuant to the Plan or any other plan of the Company or its Affiliates. 
 “Stock Option” means a non-qualified stock option or incentive stock option granted pursuant to the Plan or any other plan of the Company or its Affiliates. 

“Transfer” shall have the meaning set forth in Section 4(a) hereof. 

“Unaffiliated Person” shall mean any Person or Group who is not an Affiliate of the Company. 

8. Tag-Along and Drag-Along Rights. 
 (a) The Participant shall be deemed to be a Management Tag Along Holder (as such term is defined in the Articles) for purposes of the Articles, such that the Participant shall be entitled to receive a Tag
Along Notice (as such term is defined in the Articles) and otherwise participate in the provisions of the Tag Along Sale as set out in the Articles with respect to (i) the vested portion of any Award and (ii) with respect to the unvested
portion of any Award, the portion of such Award that would vest under Section 3(c) of the Award Agreement to which this Annex A is attached in connection with such Tag Along Sale (e.g., where such Tag Along Sale is also a Change in Control)
(“Contingent Awards”), and, for purposes of the Articles, Eligible Convertible Securities shall include both vested Awards and Contingent Awards. In such event, the Shares underlying vested Awards and Contingent Awards shall be
permitted to be sold pursuant to such Tag Along Sale by the Participant in its capacity as a Management Tag Along Holder. The proceeds from such Tag Along Sale with respect to Contingent Awards shall (A) be deposited into escrow, (B) vest
in accordance with the terms of the Applicable Award Agreement (or otherwise) and (C) be distributed to the Participant when the underlying portion of the Award otherwise vests (or in the case of any Contingent Award that is considered to be
non-qualified deferred compensation subject to Section 409A of the Code (“Section 409A Deferred Compensation”), when permitted by Section 409A without penalty to the Participant). 

(b) The Participant shall be deemed to be a Management Drag Along Holder (as such term is defined in the Articles) for purposes of the
Articles, such that the Participant shall be entitled to receive a Drag Along Sale Notice (as such term is defined in the Articles) and otherwise be required to participate in the provisions of the Drag Along Sale as set out in the Articles with
respect to (i) the vested portion of any Award and (ii) Contingent Awards, and, for purposes of the Articles, Eligible Convertible Securities shall include both vested Awards and Contingent Awards. In such event, the Shares underlying
vested Awards and Contingent 

  
 11 

 
Awards shall be permitted to be sold pursuant to such Drag Along Sale by the Participant in its capacity as a Management Drag Along Holder. The proceeds from such Drag Along Sale with respect to
Contingent Awards shall be (A) deposited into escrow (B) vest in accordance with the terms of the Applicable Award Agreement (or otherwise) and (C) be distributed to the Participant when the underlying portion of the Award otherwise
vests (or in the case of any Contingent Award that is considered to be Section 409A Deferred Compensation, when permitted by Section 409A without penalty to the Participant). 

(c) In the event a Contingent Award is not otherwise intended to be Section 409A Deferred Compensation and the applicability of this
Section 8 would cause it to be considered to be Section 409A Deferred Compensation, this Section 8 shall be applied in accordance with its terms; provided that the proceeds from the Tag Along Sale or Drag Along Sale, as applicable,
shall be distributed to such Participant by no later than the earlier of (i) the applicable date specified in Section 8(a) or Section 8(b) and (ii) the later of the end of the calendar year in which such Tag Along Sale or Drag
Along Sale is consummated and 2.5 months after the consummation of the Tag Along Sale or Drag Along Sale (the date referred to in this clause (ii), the “Section 409A Safe Harbor Date”). In the event proceeds are distributed on the
Section 409A Safe Harbor Date prior to the date they otherwise would have vested, the Participant may retain an amount of such distribution sufficient to pay all federal, state, local and employment taxes due on such amount and the balance of
such distribution shall be held in escrow until the date such distribution would otherwise have vested in accordance with the Award Agreement or otherwise. In the event such distribution would have been forfeited under the Award Agreement, the
amount held in escrow shall be returned to the Company and the Participant shall be required to pay the Company any tax benefit the Participant is entitled to receive with respect to the deduction of any amount repaid to the Company. 

(d) In the event the Prospective Selling Shareholder declines to include in the Tag Along Sale any Contingent Award that would be
permitted to be included in such Tag Along Sale that the Participant has elected to be included in such Tag Along Sale (the “Rejected Awards”), the Company and/or its Subsidiaries shall purchase the Rejected Awards for cash in an
amount equal to the Fair Value of the proceeds the Participant would have received with respect to such Rejected Awards in such Tag Along Sale. The distribution of such cash payment shall be subject to the terms and conditions of this
Section 8. 
 9. Termination. This Agreement shall terminate upon consummation of a Public Offering. Upon
termination hereof, no Party shall have any right or obligation hereunder; provided that Section 3(e) shall continue to apply to the Participant through the end of the applicable Lock-Up Period. 

10. The Company’s Agreements. If the Company becomes subject to the reporting requirements of Section 12 of the Exchange
Act, the Company will file the reports required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by the SEC thereunder, to the extent required from time to time to enable the Participant to sell
Stock or shares of Common Stock without registration under the Exchange Act within the limitations of the exemptions provided by (A) Rule 144 under the Securities Act, as such rule may be amended from time to time, or (B) any similar rule
or regulation hereafter adopted by the SEC. Notwithstanding anything contained in this Section 10, the Company may 

  
 12 

 
de-register under Section 12 of the Exchange Act if it is then permitted to do so pursuant to the Exchange Act and the rules and regulations thereunder and, in such circumstances, shall not
be required hereby to file any reports which may be necessary in order for Rule 144 or any similar rule or regulation under the Securities Act to be available. Nothing in this Section 10 shall be deemed to limit in any manner the restrictions
on sales of Stock contained in this Agreement. 
 11. Pro Rata Repurchase. Notwithstanding anything to the contrary
contained in Section 6, if at any time consummation of any purchase or payment to be made by the Company pursuant to this Agreement would result in an Event, then the Company shall make purchases from, and payments to, the Participant pro rata
(on the basis of the proportion of the number of shares of Stock each the Participant and all Other Participants have elected or are required to sell to the Company) for the maximum number of shares of Stock permitted without resulting in an Event
(the “Maximum Repurchase Amount”). The provisions of Section 6(d) shall apply in their entirety to payments and repurchases with respect to Stock which may not be made due to the limits imposed by the Maximum Repurchase Amount
under this Section 11. Until such Stock is purchased and paid for by the Company, the Participant and the Other Participants whose Stock is not purchased in accordance with this Section 11 shall have priority, on a pro rata basis, over
other purchases of Stock by the Company pursuant to this Agreement. 
 12. Rights to Negotiate Repurchase Price. Nothing
in this Agreement shall be deemed to restrict or prohibit the Company from purchasing, redeeming or otherwise acquiring for value Stock or Awards from any Participant, at any time, upon such terms and conditions, and for such price, as may be
mutually agreed upon in writing between the Company and the Participant holding such Stock hereto, whether or not at the time of such purchase, redemption or acquisition circumstances exist which specifically grant the Company the right to purchase,
or the Participant the right to sell, Stock or any Awards under the terms of this Agreement; provided that no such purchase, redemption or acquisition shall be consummated, and no agreement with respect to any such purchase, redemption or
acquisition shall be entered into, without the prior approval of the Board. 
 13. Notice of Change of Beneficiary.
Immediately prior to any Transfer of Stock to the Participant’s Trust, the Participant shall provide the Company with a copy of the instruments creating the Participant’s Trust and with the identity of the beneficiaries of the
Participant’s Trust. The Participant shall notify the Company as soon as practicable prior to any change in the identity of any beneficiary of the Participant’s Trust. 

14. Recapitalizations, etc. In the event that any capital stock or other securities are issued in respect of, in exchange for, or
in substitution of, Stock or Awards by reason of any reorganization, recapitalization, reclassification, merger, consolidation, spin-off, partial or complete liquidation, stock dividend, split-up, sale of assets, distribution to stockholders or
combination of Common Stock or any other change in the Company’s capital structure, appropriate adjustments shall be made to the provisions of this Agreement so as to fairly and equitably preserve, as far as practicable, the original rights and
obligations of the parties hereto under this Agreement. 
 15. Participant’s Employment with the Company. Nothing
contained in this Agreement or in any other agreement entered into by the Company and the Participant, including 

  
 13 

 
without limitation, a Service Agreement, (subject to, and except as set forth in, the applicable provisions of any offer letter or letter of employment provided to the Participant by the Company
or any employment agreement entered by and between the Participant and the Company) (i) obligates the Company or any subsidiary of the Company to employ the Participant in any capacity whatsoever or (ii) prohibits or restricts the Company
(or any such subsidiary) from terminating the employment of the Participant at any time or for any reason whatsoever, with or without Cause, and the Participant hereby acknowledges and agrees that neither the Company nor any other person has made
any representations or promises whatsoever to the Participant concerning the Participant’s employment or continued employment by the Company or any subsidiary of the Company. 

16. Binding Effect. The provisions of this Agreement shall be binding upon and accrue to the benefit of the Parties hereto and
their respective heirs, legal representatives, successors and assigns. In the case of a transferee permitted under clause (y) of Section 3(a) or Section 4(a) hereof, such transferee shall be deemed the Participant hereunder;
provided, however, that no transferee (including without limitation, transferees referred to in Section 3(a) or Section 4 hereof) shall derive any rights under this Agreement unless and until such transferee has delivered to
the Company a valid undertaking and becomes bound by the terms of this Agreement. 
 17. Amendment. This Agreement may be
amended only by a written instrument signed by the parties hereto. 
 18. Closing. Except as otherwise provided herein,
the closing of each purchase and sale of Stock pursuant to this Agreement shall take place at the principal office of the Company on the tenth (10th) business day following delivery of the notice by either Party to such purchase and sale to the
other of its exercise of the right to purchase or sell such Stock hereunder. 
 19. Applicable Law; Jurisdiction;
Arbitration; Legal Fees. 
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Florida, without regard to conflicts of law principles thereof that would require the application of the laws of another jurisdiction. 
 (b) Any controversy, dispute or claim arising out of or relating to this Agreement shall first be attempted to be settled through good faith negotiation. If a settlement is not reached, any and all
disputes arising out of, relating to or in connection with this Agreement, including, but not limited to, disputes relating to the validity, negotiation, execution, interpretation, performance or non-performance of the Agreement (including the
validity, scope and enforceability of this arbitration provision), shall be exclusively resolved by a single arbitrator selected in accordance with the American Arbitration Association Rules, at an arbitration to be conducted in Tampa, Florida, with
the arbitrator applying the substantive law of the State of Florida. 
 (c) Notwithstanding the foregoing, the Company may bring
an action or special proceeding in any court of competent jurisdiction, whether or not an arbitration 

  
 14 

 
proceeding has theretofore been initiated, for the purpose of seeking temporary or preliminary relief enforcing the provisions of this Agreement pending resolution of a dispute between the
Parties, compelling the Participant to arbitrate, and/or enforcing an arbitration award. 
 (d) The Parties hereby irrevocably
submit to the exclusive jurisdiction of the courts of the State of Florida and the courts of the United States of America located in the State of Florida for the purpose of any judicial proceeding brought in accordance with the provisions of
Section 19(c), or any judicial proceeding ancillary to an arbitration or contemplated arbitration arising out of or relating to or concerning the Agreement. Such ancillary judicial proceedings include any suit, action or proceeding to compel
arbitration, to obtain temporary or preliminary judicial relief in aid of arbitration, or to confirm an arbitration award. The Parties acknowledge that the fora designated by this Section 19(d) have a reasonable relationship to the Agreement,
and to the Parties’ relationship with one another, and the Parties hereby waive, to the fullest extent permitted by applicable law, any objection which they now or hereafter may have to personal jurisdiction or to the laying of venue of any
such ancillary suit, action or proceeding brought in any court referred to in this Section 19(d), and the Parties agree not to plead or claim the same. 
 (e) In the event of any arbitration or other disputes with regard to this Agreement or any other document or agreement referred to herein, each Party shall pay its own legal fees and expenses, unless
otherwise determined by the arbitrator. 
 Notwithstanding anything herein to the contrary, if there is a separate employment, change in control
or severance agreement in effect between the Participant and the Company or any of its subsidiaries or Affiliates (“Separate Agreement”) that contains an arbitration or a dispute resolution provision similar to the provisions
contained herein, the provision in that Separate Agreement shall govern any controversy hereunder as opposed to the provisions set forth herein. 
 20. Remedies. Each of the Parties to this Agreement shall be entitled to enforce its rights under this Agreement specifically, to recover damages and costs (including reasonable attorney’s
fees) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor. The Parties hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of the provisions of
this Agreement and that any Party may in its sole discretion apply to any court of law or equity of competent jurisdiction (without posting any bond or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent
any violations of the provisions of this Agreement. 
 21. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein. 

  
 15 

 22. Counterparts. This Agreement may be executed in two or more counterparts, any one
of which need not contain the signatures of more than one Party, but all such counterparts taken together shall constitute one and the same Agreement. 
 23. Assignability of Certain Rights by the Company. The Company shall have the right to assign any or all of its rights or obligations to purchase Stock pursuant to Sections 5 and 6 hereof.

 24. Miscellaneous. 
 (a) In this Agreement all references to the masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates 

(b) If any provision of this Agreement shall be declared illegal, void or unenforceable by any court of competent jurisdiction, the other
provisions shall not be affected, but shall remain in full force and effect. 
 (c) If any payment of money, delivery of Stock
or other benefits due to the Participant hereunder could cause the application of an accelerated or additional tax under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), such payment, delivery of
shares or other benefits shall be deferred if deferral will make such payment, delivery of shares or other benefits compliant under Section 409A of the Code, otherwise such payment, delivery of shares or other benefits shall be restructured, to
the extent possible, in a manner, determined by the Company and reasonably acceptable to the Participant, that does not cause such an accelerated or additional tax. 
 25. Withholding. The Company or its subsidiaries shall have the right to deduct from any cash payment made under this Agreement to the applicable Participant Entities any federal, state or local
income or other taxes required by law to be withheld with respect to such payment. 
 26. Notices. All notices and other
communications provided for herein shall be in writing. Any notice or other communication hereunder shall be deemed duly given (i) upon electronic confirmation of facsimile, (ii) one (1) business day following the date when sent by
overnight delivery and (iii) five (5) business days following the date mailed when mailed by registered or certified mail return receipt requested and postage prepaid, in each case as follows: 

(a) If to the Company, to it at the following address: 
 Masonite Inc. 
 201 N. Franklin Street, Suite 300 

Tampa, Florida 33602  
 Attention: General Counsel 

  
 16 

 with copies to: 
 Scott D. Price 
 Kirkland & Ellis LLP 

Citicorp Center 

601 Lexington Ave. 
 New York, NY 10022 
 (b) If to the Participant, to him/her at the address set
forth below under his/her signature; or at such other address as either party shall have specified by notice in writing to the other. 

  
 17f8k040313ex10i_pacificgreen.htm

Exhibit 10.1

 

SHARE EXCHANGE AGREEMENT

 

THIS AGREEMENT is made effective as of the ___ day of ________, 2012

 

AMONG:

 

PACIFIC GREEN TECHNOLOGIES INC., a Delaware corporation of 5205 Prospect Road, Suite 135-226, San Jose, CA 95129

 

(“PGT”)

 

AND:

 

THE UNDERSIGNED SHAREHOLDERS OF ENVIROTECHNOLOGIES INC. AS LISTED ON SCHEDULE 1 ATTACHED HERETO

 

(the “Selling Shareholders”)

 

WHEREAS:

 

	
A.

	
The Selling Shareholders are the registered and beneficial owners of certain issued and outstanding shares in the capital of EnviroTechnologies, Inc. (“Enviro”);

 

	
B.

	
PGT has agreed to issue common shares in the capital of PGT as of the Closing Date, as defined herein, to the Selling Shareholders as consideration for the purchase by PGT of the issued and outstanding common shares of Enviro held by the Selling Shareholders; and

 

	
C.

	
Upon the terms and subject to the conditions set forth in this Agreement, the Selling Shareholders have agreed to sell all of the issued and outstanding common shares of Enviro held by the Selling Shareholders to PGT in exchange for common shares of PGT.

 

THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties covenant and agree as follows:

 

	
1.

	
DEFINITIONS

 

	
1.1

	
Definitions

 

The following terms have the following meanings, unless the context indicates otherwise:

 

	
(a)

	
“Agreement” shall mean this Agreement, and all the exhibits, schedules and other documents attached to or referred to in this Agreement, and all amendments and supplements, if any, to this Agreement;

 

	
(b)

	
“Closing” shall mean the completion of the Transaction, in accordance with Section 6 hereof, at which the Closing Documents shall be exchanged by the parties, except for those documents or other items specifically required to be exchanged at a later time;

 

  

  

  

 

	
(c)

	
“Closing Date” shall mean a date mutually agreed upon by the parties hereto in writing and in accordance with Section 9.6 following the satisfaction or waiver by PGT and Enviro of the conditions precedent set out in Sections 5.1 and 5.2 respectively;

 

	
(d)

	
“Closing Documents” shall mean the papers, instruments and documents required to be executed and delivered at the Closing pursuant to this Agreement;

 

	
(e)

	
“Exchange Act” shall mean the United States Securities Exchange Act of 1934, as amended;

 

	
(f)

	
“GAAP” shall mean United States generally accepted accounting principles applied in a manner consistent with prior periods;

 

	
(g)

	
“Liabilities” shall include any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost, expense, obligation or responsibility, fixed or unfixed, known or unknown, asserted choate or inchoate, liquidated or unliquidated, secured or unsecured;

 

	
(h)

	
“Enviro Shares” shall mean the certain common shares of Enviro held by the Selling Shareholders, consisting of the issued and outstanding common shares of Enviro beneficially held, either directly or indirectly, by the Selling Shareholders;

 

	
(i)

	
“PGT Shares” shall mean the fully paid and non-assessable common shares of PGT, to be issued to the Selling Shareholders by PGT on the Closing Date;

 

	
(j)

	
“SEC” shall mean the Securities and Exchange Commission;

 

	
(k)

	
“Securities Act” shall mean the United States Securities Act of 1933, as amended;

 

	
(l)

	
“Taxes” shall include international, federal, state, provincial and local income taxes, capital gains tax, value-added taxes, franchise, personal property and real property taxes, levies, assessments, tariffs, duties (including any customs duty), business license or other fees, sales, use and any other taxes relating to the assets of the designated party or the business of the designated party for all periods up to and including the Closing Date, together with any related charge or amount, including interest, fines, penalties and additions to tax, if any, arising out of tax assessments; and

 

	
(m) 

	
“Transaction” shall mean the purchase of the Enviro Shares by PGT from the Selling Shareholders in consideration for the issuance of the PGT Shares.

 

	
1.2

	
Schedules

 

The following schedules are attached to and form part of this Agreement:

 

	
Schedule 1

	
–

	
Selling Shareholders

	
Schedule 1A

	
–

	
Execution Page of Selling Shareholders

	
Schedule 2A

	
–

	
Certificate of Non-U.S. Shareholder

	
Schedule 2B

	
–

	
Certificate of U.S Shareholder

 

	
1.3

	
Currency

 

All references to currency referred to in this Agreement are in United States Dollars (US$), unless expressly stated otherwise.

 

  

- 2 -

  

 

	
2.

	
THE OFFER, PURCHASE AND SALE OF SHARES

 

	
2.1

	
Offer, Purchase and Sale of Shares

 

Subject to the terms and conditions of this Agreement, the Selling Shareholders hereby covenant and agree to sell, assign and transfer to PGT, and PGT hereby covenants and agrees to purchase from the Selling Shareholders all of the Enviro Shares held by the Selling Shareholders.

 

	
2.2

	
Consideration

 

As consideration for the sale of the Enviro Shares by the Selling Shareholders to PGT, PGT shall allot and issue the PGT Shares to the Selling Shareholders in the amount set out opposite each Selling Shareholder’s name in Schedule 1.  The Selling Shareholders acknowledge and agree that the PGT Shares are being issued pursuant to an exemption from the prospectus and registration requirements of the Securities Act.  As required by applicable securities law, the Selling Shareholders agree to abide by all applicable resale restrictions and hold periods imposed by all applicable securities legislation.  All certificates representing the PGT Shares issued on Closing will be endorsed with one of the following legends pursuant to the Securities Act in order to reflect the fact that the PGT Shares will be issued to the Selling Shareholders pursuant to an exemption from the registration requirements of the Securities Act:

 

For Selling Shareholders not resident in the United States:

 

“THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.  “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.”

 

  

- 3 -

  

 

For Selling Shareholders resident in the United States:

 

“NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.  “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.”

 

	
2.3

	
Share Exchange Procedure

 

Each Selling Shareholder may exchange his, her or its certificate representing the Enviro Shares by delivering such certificate to PGT duly executed and endorsed in blank (or accompanied by duly executed stock powers duly endorsed in blank), in each case in proper form for transfer, with signatures guaranteed, and, if applicable, with all stock transfer and any other required documentary stamps affixed thereto and with appropriate instructions to allow the transfer agent to issue certificates for the PGT Shares to the holder thereof, together with:

 

	
(a)

	
if the Selling Shareholder is not resident in the United States, a Certificate of Non-U.S. Shareholder (the “Regulation S Certificate”), a copy of which is set out in Schedule 2A; and

 

	
(b)

	
if the Selling Shareholder is resident in the United States, a Certificate of U.S. Shareholder (the “Rule 506 Certificate”), a copy of which is set out in Schedule 2B.

 

(collectively, the “Questionnaires”)

 

	
2.4

	
Fractional Shares

 

Notwithstanding any other provision of this Agreement, no certificate for fractional shares of the PGT Shares will be issued in the Transaction.  In lieu of any such fractional shares, if any of the Selling Shareholders would otherwise be entitled to receive a fraction of a share of the PGT Shares upon surrender of certificates representing the Enviro Shares for exchange pursuant to this Agreement, the Selling Shareholders will be entitled to have such fraction rounded up to the nearest whole number of PGT Shares and will receive from PGT a stock certificate representing same.

 

	
2.5

	
Closing Date

 

The Closing will take place, subject to the terms and conditions of this Agreement, on the Closing Date.

 

  

- 4 -

  

 

	
2.6

	
Restricted Shares

 

The Selling Shareholders acknowledge that the PGT Shares issued pursuant to the terms and conditions set forth in this Agreement will have such hold periods as are required under applicable securities laws and as a result may not be sold, transferred or otherwise disposed, except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in each case only in accordance with all applicable securities laws.  In addition to the foregoing, the Selling Shareholders agree that they will not sell, assign or transfer any of the PGT Shares for a period of 12 months form the Closing Date, and that PGT may place appropriate legends on the PGT Share certificates to reflect this restriction.

 

	
2.7

	
Exemptions

 

The Selling Shareholders acknowledge that PGT has advised such Selling Shareholders that PGT is relying upon the representations and warranties of the Selling Shareholders set out in the Questionnaires to issue the PGT Shares under an exemption from the registration requirements of the Securities Act.

 

	
3.

	
REPRESENTATIONS AND WARRANTIES OF THE SELLING SHAREHOLDERS

 

As of the Closing, the Selling Shareholders, represent and warrant to PGT, and acknowledge that PGT is relying upon such representations and warranties, in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of PGT, as follows:

 

	
3.1

	
Title and Authority of Selling Shareholders.

 

Each of the Selling Shareholders is and will be as of the Closing, the registered and beneficial owner of and will have good and marketable title to all of the Enviro Common Stock held by it and will hold such free and clear of all liens, charges and encumbrances whatsoever; and such Enviro Common Stock held by such Selling Shareholders have been duly and validly issued and are outstanding as fully paid and non-assesable common shares in the capital of Enviro.  Each of the Selling Shareholders has due and sufficient right and authority to enter into this Agreement on the terms and conditions herein set forth and to transfer the registered, legal and beneficial title and ownership of the Enviro Common Stock held by it.

 

Notwithstanding section 9.1 hereof, the representations and warranties contained in this section shall survive Closing indefinitely.

 

	
4.

	
REPRESENTATIONS AND WARRANTIES OF PGT

 

As of the Closing, PGT represents and warrants to Enviro and the Selling Shareholders and acknowledges that Enviro and the Selling Shareholders are relying upon such representations and warranties in connection with the execution, delivery and performance of this Agreement, notwithstanding any investigation made by or on behalf of Enviro or the Selling Shareholders, as follows:

 

	
4.1

	
Organization and Good Standing

 

PGT is duly incorporated, organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease and to carry on its business as now being conducted.  PGT is qualified to do business and is in good standing as a foreign corporation in each of the jurisdictions in which it owns property, leases property, does business, or is otherwise required to do so, where the failure to be so qualified would have a material adverse effect on the businesses, operations, or financial condition of PGT.

 

  

- 5 -

  

 

	
4.2

	
Authority

 

PGT has all requisite corporate power and authority to execute and deliver this Agreement and any other document contemplated by this Agreement (collectively, the “PGT Documents”) to be signed by PGT and to perform its obligations hereunder and to consummate the transactions contemplated hereby.  The execution and delivery of each of the PGT Documents by PGT and the consummation by PGT of the transactions contemplated hereby have been duly authorized by its board of directors and no other corporate or shareholder proceedings on the part of PGT is necessary to authorize such documents or to consummate the transactions contemplated hereby.  This Agreement has been, and the other PGT Documents when executed and delivered by PGT as contemplated by this Agreement will be, duly executed and delivered by PGT and this Agreement is, and the other PGT Documents when executed and delivered by PGT, as contemplated hereby will be, valid and binding obligations of PGT enforceable in accordance with their respective terms, except:

 

	
(a)

	
as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors’ rights generally;

 

	
(b)

	
as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies; and

 

	
(c)

	
as limited by public policy.

 

	
4.3  

	
Capitalization of PGT

 

The entire authorized capital stock and other equity securities of PGT consists of shares of common stock with a par value of $0.001 (the “PGT Common Stock”).  As of the date of this Agreement, there are  shares of PGT Common Stock issued and outstanding.

 

	
4.4

	
Non-Contravention

 

Neither the execution, delivery and performance of this Agreement, nor the consummation of the Transaction, will:

 

	
(a)

	
conflict with, result in a violation of, cause a default under (with or without notice, lapse of time or both) or give rise to a right of termination, amendment, cancellation or acceleration of any obligation contained in or the loss of any material benefit under, or result in the creation of any lien, security interest, charge or encumbrance upon any of the material properties or assets of PGT under any term, condition or provision of any loan or credit agreement, note, debenture, bond, mortgage, indenture, lease or other agreement, instrument, permit, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to PGT or any of its material property or assets;

 

	
(b)

	
violate any provision of the applicable incorporation or charter documents of PGT; or

 

  

- 6 -

  

 

	
(c)

	
violate any order, writ, injunction, decree, statute, rule, or regulation of any court or governmental or regulatory authority applicable to PGT or any of its material property or assets.

 

	
4.5

	
Validity of PGT Common Stock Issuable upon the Transaction

 

The PGT Shares to be issued to the Selling Shareholders upon consummation of the Transaction in accordance with this Agreement will, upon issuance, have been duly and validly authorized and, when so issued in accordance with the terms of this Agreement, will be duly and validly issued, fully paid and non-assessable.

 

	
4.6  

	
Compliance

 

	
(a)

	
To the best knowledge of PGT, PGT is in compliance with, is not in default or violation in any material respect under, and has not been charged with or received any notice at any time of any material violation of any statute, law, ordinance, regulation, rule, decree or other applicable regulation to the business or operations of PGT;

 

	
(b)

	
To the best knowledge of PGT, PGT is not subject to any judgment, order or decree entered in any lawsuit or proceeding applicable to its business and operations that would constitute a PGT Material Adverse Effect;

 

	
(c)

	
PGT has duly filed all reports and returns required to be filed by it with governmental authorities and has obtained all governmental permits and other governmental consents, except as may be required after the execution of this Agreement.  All of such permits and consents are in full force and effect, and no proceedings for the suspension or cancellation of any of them, and no investigation relating to any of them, is pending or to the best knowledge of PGT, threatened, and none of them will be affected in a material adverse manner by the consummation of the Transaction; and

 

	
(d)

	
PGT has operated in material compliance with all laws, rules, statutes, ordinances, orders and regulations applicable to its business.  PGT has not received any notice of any violation thereof, nor is PGT aware of any valid basis therefore.

 

	
4.7

	
Filings, Consents and Approvals

 

No filing or registration with, no notice to and no permit, authorization, consent, or approval of any public or governmental body or authority or other person or entity is necessary for the consummation by PGT of the Transaction contemplated by this Agreement to continue to conduct its business after the Closing Date in a manner which is consistent with that in which it is presently conducted.

 

	
4.8

	
SEC Filings

 

PGT has furnished or made available to Enviro and the Selling Shareholders a true and complete copy of each report, schedule, registration statement and proxy statement filed by PGT with the SEC (collectively, and as such documents have since the time of their filing been amended, the “PGT SEC Documents”). As of their respective dates, the PGT SEC Documents complied in all material respects with the requirements of the Securities Act, or the Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder applicable to such PGT SEC Documents.  The PGT SEC Documents constitute all of the documents and reports that PGT was required to file with the SEC pursuant to the Exchange Act and the rules and regulations promulgated thereunder by the SEC.

 

  

- 7 -

  

 

	
4.9

	
Listing and Maintenance Requirements

 

PGT is not currently quoted on the OTC Bulletin Board and has not, in the 12 months preceding the date hereof, received any notice from the OTC Bulletin Board or the FINRA or any trading market to the effect that PGT would not be eligible to list or be quoted on any such trading market.

 

	
5.

	
CLOSING CONDITIONS

 

	
5.1

	
Conditions Precedent to Closing by PGT

 

The obligation of PGT to consummate the Transaction is subject to the satisfaction or written waiver of the conditions set forth below by a date mutually agreed upon by the parties hereto in writing and in accordance with Section 9.6.  The Closing of the Transaction contemplated by this Agreement will be deemed to mean a waiver of all conditions to Closing.  These conditions precedent are for the benefit of PGT and may be waived by PGT in its sole discretion.

 

	
(a)

	
Representations and Warranties

 

The representations and warranties of the Selling Shareholders set forth in this Agreement will be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date.

 

	
(b)

	
Performance

 

All of the covenants and obligations that the Selling Shareholders are required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects.

 

	
(c)

	
No Action

 

No suit, action, or proceeding will be pending or threatened which would:

 

	
(i)

	
prevent the consummation of any of the transactions contemplated by this Agreement; or

 

	
(ii)

	
cause the Transaction to be rescinded following consummation.

 

	
(d)

	
Outstanding Shares

 

Enviro will have no more than         shares of Enviro Common Stock issued and outstanding on the Closing Date.

 

  

- 8 -

  

 

	
(e)

	
Due Diligence Generally

 

PGT and its solicitors will be reasonably satisfied with their due diligence investigation of Enviro that is reasonable and customary in a transaction of a similar nature to that contemplated by the Transaction, including:

 

	
(i)

	
materials, documents and information in the possession and control of Enviro and the Selling Shareholders which are reasonably germane to the Transaction;

 

	
(ii)

	
a physical inspection of the assets of Enviro by PGT or its representatives; and

 

	
(iii)

	
title to the material assets of Enviro.

 

	
(f) 

	
Compliance with Securities Laws

 

PGT will have received evidence satisfactory to PGT that the PGT Shares issuable in the Transaction will be issuable without registration pursuant to the Securities Act in reliance on an exemption from the registration requirements of the Securities Act provided by Regulation S and/or Regulation D.

 

In order to establish the availability of the safe harbor from the registration requirements of the Securities Act for the issuance of PGT Shares to each Selling Shareholder, Enviro will deliver to PGT on Closing, a Regulation S Certificate or Rule 506 Certificate, as applicable, and a Questionnaire duly executed by each Selling Shareholder.

 

	
5.2  

	
Conditions Precedent to Closing by the Selling Shareholders

 

The obligation of the Selling Shareholders to consummate the Transaction is subject to the satisfaction or written waiver of the conditions set forth below by a date mutually agreed upon by the parties hereto in writing and in accordance with Section 9.6.  The Closing of the Transaction will be deemed to mean a waiver of all conditions to Closing.  These conditions precedent are for the benefit of the Selling Shareholders and may be waived by the Selling Shareholders in their discretion.

 

	
(a)

	
Representations and Warranties

 

The representations and warranties of PGT set forth in this Agreement will be true, correct and complete in all respects as of the Closing Date, as though made on and as of the Closing Date and PGT will have delivered to Enviro a certificate dated the Closing Date, to the effect that the representations and warranties made by PGT in this Agreement are true and correct.

 

	
(b)

	
Performance

 

All of the covenants and obligations that PGT are required to perform or to comply with pursuant to this Agreement at or prior to the Closing must have been performed and complied with in all material respects.  PGT must have delivered each of the documents required to be delivered by it pursuant to this Agreement.

 

	
(c)

	
Transaction Documents

 

This Agreement, and all other documents necessary or reasonably required to consummate the Transaction, all in form and substance reasonably satisfactory to Enviro, will have been executed and delivered by PGT.

 

  

- 9 -

  

 

	
(d)

	
No Action

 

No suit, action, or proceeding will be pending or threatened before any governmental or regulatory authority wherein an unfavorable judgment, order, decree, stipulation, injunction or charge would result in and/or:

 

	
(i)

	
prevent the consummation of any of the transactions contemplated by this Agreement; or

 

	
(ii)

	
cause the Transaction to be rescinded following consummation.

 

	
(e)

	
Outstanding Shares

 

On the Closing Date, excluding any shares issuable pursuant to this Agreement, PGT will have no more than 5,027,002 common shares issued and outstanding in the capital of PGT.

 

	
(f)

	
Public Market

 

On the Closing Date, the shares of PGT Common Stock will be quoted on the OTCQB operated by OTCMarkets.

 

	
(g)

	
Due Diligence Generally

 

A Selling Shareholder will be reasonably satisfied with their respective due diligence investigation of PGT that is reasonable and customary in a transaction of a similar nature to that contemplated by the Transaction.

 

	
6.  

	
CLOSING

 

	
6.1  

	
Closing

 

The Closing shall take place on the Closing Date at the offices of the lawyers for PGT or at such other location as agreed to by the parties.  Notwithstanding the location of the Closing, each party agrees that the Closing may be completed by the exchange of undertakings between the respective legal counsels provided such undertakings are satisfactory to each party’s respective legal counsel.

 

	
6.2  

	
Closing Deliveries of Enviro and the Selling Shareholders

 

At Closing, the Selling Shareholders will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to PGT:

 

	
(a)

	
if any of the Selling Shareholders appoint any person, by power of attorney or equivalent, to execute this Agreement or any other agreement, document, instrument or certificate contemplated by this agreement, on behalf of the Selling Shareholder, a valid and binding power of attorney or equivalent from such Selling Shareholder;

 

	
(b)

	
share certificates representing the Enviro Shares as required by Section 2.3 of this Agreement;

 

	
(c)

	
certificates and other documents required by Sections 2.3 and 5.1 of this Agreement;

 

	
(d)

	
any other necessary documents, each duly executed by Enviro, as required to give effect to the Transaction;

 

  

- 10 -

  

 

	
6.3  

	
Closing Deliveries of PGT

 

At Closing, PGT will deliver or cause to be delivered the following, fully executed and in the form and substance reasonably satisfactory to Enviro:

 

	
(a)

	
copies of all resolutions and/or consent actions adopted by or on behalf of the board of directors of PGT evidencing approval of this Agreement and the Transaction;

 

	
(b)

	
all confirmations and other documents required by Section 5.2 of this Agreement;

 

	
6.4  

	
Additional Post Closing Delivery of PGT

 

As soon as practicable following Closing, PGT will deliver or cause to be delivered the share certificates representing the PGT Shares.

 

	
7.  

	
TERMINATION

 

	
7.1  

	
Termination

 

This Agreement may be terminated at any time prior to the Closing Date contemplated hereby by:

 

	
(a)  

	
mutual agreement of PGT and a Selling Shareholder;

 

	
(b)  

	
PGT, if there has been a material breach by a Selling Shareholder or any of the Selling Shareholders of any material representation, warranty, covenant or agreement set forth in this Agreement on the part of a Selling Shareholder or the Selling Shareholders that is not cured, to the reasonable satisfaction of PGT, within ten business days after notice of such breach is given by PGT (except that no cure period will be provided for a breach by a Selling Shareholder or the Selling Shareholders that by its nature cannot be cured);

 

	
(c)  

	
A Selling Shareholder, if there has been a material breach by PGT of any material representation, warranty, covenant or agreement set forth in this Agreement on the part of PGT that is not cured by the breaching party, to the reasonable satisfaction of a Selling Shareholder, within ten business days after notice of such breach is given by a Selling Shareholder (except that no cure period will be provided for a breach by PGT that by its nature cannot be cured);

 

or

 

	
(d)  

	
PGT or a Selling Shareholder if any permanent injunction or other order of a governmental entity of competent authority preventing the consummation of the Transaction contemplated by this Agreement has become final and non-appealable.

 

	
7.2  

	
Effect of Termination

 

In the event of the termination of this Agreement as provided in Section 7.1, this Agreement will be of no further force or effect, provided, however, that no termination of this Agreement will relieve any party of liability for any breaches of this Agreement that are based on a wrongful refusal or failure to perform any obligations.

 

  

- 11 -

  

 

	
8.  

	
INDEMNIFICATION, REMEDIES, SURVIVAL

 

	
8.1  

	
Certain Definitions

 

For the purposes of this Article 8 the terms “Loss” and “Losses” mean any and all demands, claims, actions or causes of action, assessments, losses, damages, Liabilities, costs, and expenses, including without limitation, interest, penalties, fines and reasonable attorneys, accountants and other professional fees and expenses, but excluding any indirect, consequential or punitive damages suffered by PGT or Enviro including damages for lost profits or lost business opportunities.

 

	
8.2  

	
Agreement of the Selling Shareholders to Indemnify

 

The Selling Shareholders will indemnify, defend, and hold harmless, to the full extent of the law, PGT and its shareholders from, against, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by PGT and its shareholders by reason of, resulting from, based upon or arising out of:

 

	
(a)  

	
any breach by the Selling Shareholders of Section 2.2 of this Agreement; or

 

	
(b)  

	
any misstatement, misrepresentation or breach of the representations and warranties made by the Selling Shareholders contained in or made pursuant to the Regulation S Certificate, Rule 506 Certificate or the Questionnaire executed by each Selling Shareholder as part of the share exchange procedure detailed in Section 2.3 of this Agreement.

 

	
8.3  

	
Agreement of PGT to Indemnify

 

PGT will indemnify, defend, and hold harmless, to the full extent of the law, the Selling Shareholders from, against, for, and in respect of any and all Losses asserted against, relating to, imposed upon, or incurred by the Selling Shareholders by reason of, resulting from, based upon or arising out of:

 

	
(a)  

	
the breach by PGT of any representation or warranty of PGT contained in or made pursuant to this Agreement, any PGT Document or any certificate or other instrument delivered pursuant to this Agreement; or

 

	
(b)  

	
the breach or partial breach by PGT of any covenant or agreement of PGT made in or pursuant to this Agreement, any PGT Document or any certificate or other instrument delivered pursuant to this Agreement.

 

	
9.  

	
MISCELLANEOUS PROVISIONS

 

	
9.1  

	
Effectiveness of Representations; Survival

 

Each party is entitled to rely on the representations, warranties and agreements of each of the other parties and all such representation, warranties and agreement will be effective regardless of any investigation that any party has undertaken or failed to undertake.  Unless otherwise stated in this Agreement, and except for instances of fraud, the representations, warranties and agreements will survive the Closing Date and continue in full force and effect until one (1) year after the Closing Date.

 

  

- 12 -

  

 

	
9.2  

	
Further Assurances

 

Each of the parties hereto will co-operate with the others and execute and deliver to the other parties hereto such other instruments and documents and take such other actions as may be reasonably requested from time to time by any other party hereto as necessary to carry out, evidence, and confirm the intended purposes of this Agreement.

 

	
9.3  

	
Amendment

 

This Agreement may not be amended except by an instrument in writing signed by each of the parties.

 

	
9.4  

	
Expenses

 

PGT will bear all costs incurred in connection with the preparation, execution and performance of this Agreement and the Transaction contemplated hereby, including all fees and expenses of agents, representatives and accountants; provided that PGT and Enviro will bear its respective legal costs incurred in connection with the preparation, execution and performance of this Agreement and the Transaction contemplated hereby.

 

	
9.5  

	
Entire Agreement

 

This Agreement, the schedules attached hereto and the other documents in connection with this transaction contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior arrangements and understandings, both written and oral, expressed or implied, with respect thereto.  Any preceding correspondence or offers are expressly superseded and terminated by this Agreement.

 

	
9.6  

	
Notices

 

All notices and other communications required or permitted under this Agreement must be in writing and will be deemed given if sent by personal delivery, faxed with electronic confirmation of delivery, internationally-recognized express courier or registered or certified mail (return receipt requested), postage prepaid, to the parties at the following addresses (or at such other address for a party as will be specified by like notice):

 

If to any of the Selling Shareholders:

 

	  
	  
	  

 

Attention:            u

 

Telephone:          u

 

  

- 13 -

  

 

If to PGT:

 

c/o Macdonald Tuskey, Corporate and Securities Lawyers

Barristers & Solicitors

Suite 400 – 570 Granville Street

Vancouver, British Columbia

Canada  V6C 3P1

 

Attention:                      Bill Macdonald

Telephone:                    (604) 648-1670

Facsimile:                       (604) 681-4760

 

All such notices and other communications will be deemed to have been received:

 

	
(a)  

	
in the case of personal delivery, on the date of such delivery;

 

	
(b)  

	
in the case of a fax, when the party sending such fax has received electronic confirmation of its delivery;

 

	
(c)  

	
in the case of delivery by internationally-recognized express courier, on the business day following dispatch; and

 

	
(d)  

	
in the case of mailing, on the fifth business day following mailing.

 

	
9.7  

	
Independent Legal Advice.

 

Each Selling Shareholder acknowledges that:

 

	
(a)  

	
this Agreement was prepared by counsel for PGT;

 

	
(b)  

	
counsel received instructions from PGT and does not represent the Selling Shareholder;

 

	
(c)  

	
the Selling Shareholder has been requested to obtain his own independent legal advice on this Agreement prior to signing this Agreement;

 

	
(d)  

	
the Selling Shareholder has been given adequate time to obtain independent legal advice;

 

	
(e)  

	
by signing this Agreement, the Selling Shareholder confirms that he fully understands this Agreement; and

 

	
(f)  

	
by signing this Agreement without first obtaining independent legal advice, the Selling Shareholder waives his right to obtain independent legal advice.

 

	
9.8  

	
Headings

 

The headings contained in this Agreement are for convenience purposes only and will not affect in any way the meaning or interpretation of this Agreement.

 

	
9.9  

	
Benefits

 

This Agreement is and will only be construed as for the benefit of or enforceable by those persons party to this Agreement.

 

  

- 14 -

  

 

	
9.10  

	
Assignment

 

This Agreement may not be assigned (except by operation of law) by any party without the consent of the other parties.

 

	
9.11  

	
Governing Law

 

This Agreement will be governed by and construed in accordance with the laws of the State of Delaware applicable to contracts made and to be performed therein.

 

	
9.12  

	
Construction

 

The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party.

 

	
9.13  

	
Gender

 

All references to any party will be read with such changes in number and gender as the context or reference requires.

 

	
9.14  

	
Business Days

 

If the last or appointed day for the taking of any action required or the expiration of any rights granted herein shall be a Saturday, Sunday or a legal holiday in the State of Delaware, then such action may be taken or right may be exercised on the next succeeding day which is not a Saturday, Sunday or such a legal holiday.

 

	
9.15  

	
Counterparts

 

This Agreement may be executed in one or more counterparts, all of which will be considered one and the same agreement and will become effective when one or more counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

 

	
9.16  

	
Fax Execution

 

This Agreement may be executed by delivery of executed signature pages by fax and such fax execution will be effective for all purposes.

 

	
9.17  

	
Schedules and Exhibits

 

The schedules and exhibits are attached to this Agreement and incorporated herein.

 

IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

 

	
PACIFIC GREEN TECHNOLOGIES INC.

	 
	 	 	 
	
Per: 

	 	 
	 	
Authorized Signatory

	 
	 	

Name:

	 	 
	 	

Title:

	 	 

 

  

- 15 -

  

 

SCHEDULE 1

TO THE SHARE EXCHANGE AGREEMENT

AMONG PACIFIC GREEN TECHNOLOGIES INC. AND THE SELLING SHAREHOLDERS AS SET OUT IN THE SHARE EXCHANGE AGREEMENT

 

THE SELLING SHAREHOLDERS

	
Ref

No.

	
Shareholder’s Name

	
Address

	
Number of

Enviro Shares

Held before

Closing

	
Total Number of

PGT Shares

to be issued by

PGT on Closing

	  	  	  	  	  
	  	  	  	  	  
	  	  	  	  	  

 

  

  

  

 

SCHEDULE 1A

TO THE SHARE EXCHANGE AGREEMENT

AMONG PACIFIC GREEN TECHNOLOGIES AND THE SELLING SHAREHOLDERS AS SET OUT IN THE SHARE EXCHANGE AGREEMENT

 

ACKNOWLEDGED AND AGREED TO THIS _______ day of __________________, 2012, BY:

 

	  	  
	
(Name of Subscriber – Please type or print)

	  
	 	 
	
Per:

	  
	  	  
	  	  
	
(Signature of Authorized Signatory)

	  
	 	 
	  	  
	
(Name of Authorized Signatory)

	  
	 	 
	  	  
	
(Office of Authorized Signatory)

	  
	 	 
	  	 
	
(Address of Subscriber)

	  
	 	 
	  	  
	
(City, State or Province, Postal Code of Subscriber)

	  
	 	 
	 	 
	
(Country of Subscriber)

	  
	 	 
	 	 
	
(Telephone number of Subscriber)

	  
	 	 
	 	 

 

  

  

  

 

SCHEDULE 2 A

TO THE SHARE EXCHANGE AGREEMENT

AMONG PACIFIC GREEN TECHNOLOGIES INC., AND THE SELLING SHAREHOLDERS AS SET OUT IN THE SHARE EXCHANGE AGREEMENT

 

CERTIFICATE OF NON-U.S. SHAREHOLDER

 

In connection with the issuance of common stock (the “PGT Shares”) of PACIFIC GREEN TECHNOLOGIES INC., a Delaware corporation (“PGT”), to the undersigned, pursuant to that certain Share Exchange Agreement dated _____________, 2012 (the “Agreement”), among PGT, and the shareholders of Enviro as set out in the Agreement (each, a “Selling Shareholder”), the undersigned Selling Shareholder hereby agrees, acknowledges, represents and warrants that:

 

1.           the undersigned is not a “U.S. Person” as such term is defined by Rule 902 of Regulation S under the United States Securities Act of 1933, as amended (“U.S. Securities Act”) (the definition of which includes, but is not limited to, an individual resident in the U.S. and an estate or trust of which any executor or administrator or trust, respectively is a U.S. Person and any partnership or corporation organized or incorporated under the laws of the U.S.);

 

2.           none of the PGT Shares have been or will be registered under the U.S. Securities Act, or under any state securities or “blue sky” laws of any state of the United States, and may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S, except in accordance with the provisions of Regulation S or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable state and foreign securities laws;

 

3.           the Selling Shareholder understands and agrees that offers and sales of any of the PGT Shares prior to the expiration of a period of one year after the date of original issuance of the PGT Shares (the one year period hereinafter referred to as the “Distribution Compliance Period”) shall only be made in compliance with the safe harbor provisions set forth in Regulation S, pursuant to the registration provisions of the U.S. Securities Act or an exemption therefrom, and that all offers and sales after the Distribution Compliance Period shall be made only in compliance with the registration provisions of the U.S. Securities Act or an exemption therefrom and in each case only in accordance with applicable state and foreign securities laws;

 

4.           the Selling Shareholder understands and agrees not to engage in any hedging transactions involving any of the PGT Shares unless such transactions are in compliance with the provisions of the U.S. Securities Act and in each case only in accordance with applicable state and provincial securities laws;

 

5.           the Selling Shareholder is acquiring the PGT Shares for investment only and not with a view to resale or distribution and, in particular, it has no intention to distribute either directly or indirectly any of the PGT Shares in the United States or to U.S. Persons;

 

6.           the Selling Shareholder has not acquired the PGT Shares as a result of, and will not itself engage in, any directed selling efforts (as defined in Regulation S under the U.S. Securities Act) in the United States in respect of the PGT Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of any of the PGT Shares; provided, however, that the Selling Shareholder may sell or otherwise dispose of the PGT Shares pursuant to registration thereof under the U.S. Securities Act and any applicable state and provincial securities laws or under an exemption from such registration requirements;

 

  

  

  

 

7.           the statutory and regulatory basis for the exemption claimed for the sale of the PGT Shares, although in technical compliance with Regulation S, would not be available if the offering is part of a plan or scheme to evade the registration provisions of the U.S. Securities Act or any applicable state and provincial securities laws;

 

8.           PGT has not undertaken, and will have no obligation, to register any of the PGT Shares under the U.S. Securities Act;

 

9.           PGT is entitled to rely on the acknowledgements, agreements, representations and warranties and the statements and answers of the Selling Shareholder contained in the Agreement and this Certificate, and the Selling Shareholder will hold harmless PGT from any loss or damage either one may suffer as a result of any such acknowledgements, agreements, representations and/or warranties made by the Selling Shareholder not being true and correct;

 

10.           the undersigned has been advised to consult their own respective legal, tax and other advisors with respect to the merits and risks of an investment in the PGT Shares and, with respect to applicable resale restrictions, is solely responsible (and PGT is not in any way responsible) for compliance with applicable resale restrictions;

 

11.           the undersigned and the undersigned’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from PGT in connection with the acquisition of the PGT Shares under the Agreement, and to obtain additional information, to the extent possessed or obtainable by PGT without unreasonable effort or expense;

 

12.           the books and records of PGT were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the undersigned during reasonable business hours at its principal place of business and that all documents, records and books in connection with the acquisition of the PGT Shares under the Agreement have been made available for inspection by the undersigned, the undersigned’s attorney and/or advisor(s);

 

13.           the undersigned:

 

	
  

	
(a)

	
is knowledgeable of, or has been independently advised as to, the applicable securities laws of the securities regulators having application in the jurisdiction in which the undersigned is resident (the “International Jurisdiction”) which would apply to the acquisition of the PGT Shares;

 

	
  

	
(b)

	
the undersigned is acquiring the PGT Shares pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the undersigned is permitted to acquire the PGT Shares under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions;

 

	
  

	
(c)

	
the applicable securities laws of the authorities in the International Jurisdiction do not require PGT to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the PGT Shares; and

 

  

- 2 -

  

 

	
  

	
(d)

	
the acquisition of the PGT Shares by the undersigned does not trigger:

 

	
  

	
(i)

	
any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction; or

 

	
  

	
(ii)

	
any continuous disclosure reporting obligation of PGT in the International Jurisdiction; and

 

the undersigned will, if requested by PGT, deliver to PGT a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in Sections 13(c) and 13(d) above to the satisfaction of PGT, acting reasonably;

 

14.           the undersigned (i) is able to fend for itself in connection with the acquisition of the PGT Shares; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the PGT Shares; and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

15.           the undersigned is not aware of any advertisement of any of the PGT Shares and is not acquiring the PGT Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

 

16.           no person has made to the undersigned any written or oral representations:

 

	
  

	
(a)

	
that any person will resell or repurchase any of the PGT Shares;

 

	
  

	
(b)

	
that any person will refund the purchase price of any of the PGT Shares;

 

	
  

	
(c)

	
as to the future price or value of any of the PGT Shares; or

 

	
  

	
(d)

	
that any of the PGT Shares will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the PGT Shares on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of PGT on the OTCQB;

 

17.           the undersigned is outside the United States when receiving and executing this Agreement and is acquiring the PGT Shares as principal for their own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in the PGT Shares;

 

18.           neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the PGT Shares;

 

19.           the PGT Shares are not being acquired, directly or indirectly, for the account or benefit of a U.S. Person or a person in the United States;

 

20.           the undersigned acknowledges and agrees that PGT shall refuse to register any transfer of PGT Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from registration under the U.S. Securities Act;

 

  

- 3 -

  

 

21.           the undersigned understands and agrees that the PGT Shares will bear the following legend:

 

“THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”).

 

NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.  “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.”

 

22.           the address of the undersigned included herein is the sole address of the undersigned as of the date of this certificate.

 

IN WITNESS WHEREOF, I have executed this Certificate of Non-U.S. Shareholder.

 

	 	 	 	
Date:_________________________________, 2012

	 
	
Signature

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Print Name	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Title (if applicable)	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Address	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
Address

	 	 	 	 
	 	 	 	 	 

 

  

- 4 -

  

 

SCHEDULE 2B

TO THE SHARE EXCHANGE AGREEMENT

AMONG PACIFIC GREEN TECHNOLOGIES INC., AND THE SELLING SHAREHOLDERS AS SET OUT IN THE SHARE EXCHANGE AGREEMENT

 

CERTIFICATE OF U.S. SHAREHOLDER

 

In connection with the issuance of common stock (the “PGT Shares”) of PACIFIC GREEN TECHNOLOGIES INC., a Delaware corporation (“PGT”), to the undersigned, pursuant to that certain Share Exchange Agreement dated _____________, 2012 (the “Agreement”), among PGT, and the shareholders of Enviro as set out in the Agreement (each, a “Selling Shareholder”), the undersigned Selling Shareholder hereby agrees, acknowledges, represents and warrants that:

 

1.           the undersigned satisfies one or more of the categories of "Accredited Investors", as defined by Regulation D promulgated under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), as indicated below:  (Please initial in the space provide those categories, if any, of an "Accredited Investor" which the undersigned satisfies.)

 

	

_______

	
  Category 1

	
An organization described in Section 501(c)(3) of the United States Internal Revenue Code, a corporation, a Massachusetts or similar business trust or partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of US $5,000,000.

 

	

_______

	
  Category 2

	
A natural person whose individual net worth, or joint net worth with that person's spouse, on the date of purchase exceeds US $1,000,000, excluding the value of such person’s primary residence.

 

	

_______

	
  Category 3

	
A natural person who had an individual income in excess of US $200,000 in each of the two most recent years or joint income with that person's spouse in excess of US $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.

 

	

_______

	
  Category 4

	
A "bank" as defined under Section (3)(a)(2) of the 1933 Act or savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act acting in its individual or fiduciary capacity; a broker dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934 (United States); an insurance company as defined in Section 2(13) of the 1933 Act; an investment company registered under the Investment Company Act of 1940 (United States) or a business development company as defined in Section 2(a)(48) of such Act; a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958 (United States); a plan with total assets in excess of $5,000,000 established and maintained by a state, a political subdivision thereof, or an agency or instrumentality of a state or a political subdivision thereof, for the benefit of its employees; an employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 (United States) whose investment decisions are made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000, or, if a self-directed plan, whose investment decisions are made solely by persons that are accredited investors.

 

  

  

  

 

	

_______

	
  Category 5

	
A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940 (United States).

 

	

_______

	
  Category 6

	
A director or executive officer of the Company.

 

	
_______

	
  Category 7

	
A trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the 1933 Act.

 

	
_______

	
  Category 8

	
An entity in which all of the equity owners satisfy the requirements of one or more of the foregoing categories.

 

Note that for any of the Selling Shareholders claiming to satisfy one of the above categories of Accredited Investor may be required to supply the Company with a balance sheet, prior years' federal income tax returns or other appropriate documentation to verify and substantiate the Subscriber's status as an Accredited Investor.

 

If the Selling Shareholder is an entity which initialled Category 8 in reliance upon the Accredited Investor categories above, state the name, address, total personal income from all sources for the previous calendar year, and the net worth (exclusive of home, home furnishings and personal automobiles) for each equity owner of the said entity:

 

__________________________________________________________________________________

 

2.           none of the PGT Shares have been or will be registered under the U.S. Securities Act, or under any state securities or “blue sky” laws of any state of the United States, and may not be offered or sold in the United States or, directly or indirectly, to U.S. Persons, as that term is defined in Regulation S, except in accordance with the provisions of Regulation S or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable state and foreign securities laws;

 

3.           the Selling Shareholder understands and agrees that offers and sales of any of the PGT Shares shall be made only in compliance with the registration provisions of the U.S. Securities Act or an exemption therefrom and in each case only in accordance with applicable state and foreign securities laws;

 

4.           the Selling Shareholder understands and agrees not to engage in any hedging transactions involving any of the PGT Shares unless such transactions are in compliance with the provisions of the U.S. Securities Act and in each case only in accordance with applicable state and provincial securities laws;

 

5.           the Selling Shareholder is acquiring the PGT Shares for investment only and not with a view to resale or distribution and, in particular, it has no intention to distribute either directly or indirectly any of the PGT Shares in the United States or to U.S. Persons;

 

6.           PGT has not undertaken, and will have no obligation, to register any of the PGT Shares under the U.S. Securities Act;

 

7.           PGT is entitled to rely on the acknowledgements, agreements, representations and warranties and the statements and answers of the Selling Shareholder contained in the Agreement and this Certificate, and the Selling Shareholder will hold harmless PGT from any loss or damage either one may suffer as a result of any such acknowledgements, agreements, representations and/or warranties made by the Selling Shareholder not being true and correct;

 

  

- 2 -

  

 

8.           the undersigned has been advised to consult their own respective legal, tax and other advisors with respect to the merits and risks of an investment in the PGT Shares and, with respect to applicable resale restrictions, is solely responsible (and PGT is not in any way responsible) for compliance with applicable resale restrictions;

 

9.           the undersigned and the undersigned’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from PGT in connection with the acquisition of the PGT Shares under the Agreement, and to obtain additional information, to the extent possessed or obtainable by PGT without unreasonable effort or expense;

 

10.           the books and records of PGT were available upon reasonable notice for inspection, subject to certain confidentiality restrictions, by the undersigned during reasonable business hours at its principal place of business and that all documents, records and books in connection with the acquisition of the PGT Shares under the Agreement have been made available for inspection by the undersigned, the undersigned’s attorney and/or advisor(s);

 

11.           the undersigned:

 

	
  

	
(a)

	
is knowledgeable of, or has been independently advised as to, the applicable securities laws of the securities regulators having application in the jurisdiction in which the undersigned is resident (the “International Jurisdiction”) which would apply to the acquisition of the PGT Shares;

 

	
  

	
(b)

	
the undersigned is acquiring the PGT Shares pursuant to exemptions from prospectus or equivalent requirements under applicable securities laws or, if such is not applicable, the undersigned is permitted to acquire the PGT Shares under the applicable securities laws of the securities regulators in the International Jurisdiction without the need to rely on any exemptions;

 

	
  

	
(c)

	
the applicable securities laws of the authorities in the International Jurisdiction do not require PGT to make any filings or seek any approvals of any kind whatsoever from any securities regulator of any kind whatsoever in the International Jurisdiction in connection with the issue and sale or resale of the PGT Shares; and

 

	
  

	
(d)

	
the acquisition of the PGT Shares by the undersigned does not trigger:

 

	
  

	
(i)

	
any obligation to prepare and file a prospectus or similar document, or any other report with respect to such purchase in the International Jurisdiction; or

 

	
  

	
(ii)

	
any continuous disclosure reporting obligation of PGT in the International Jurisdiction; and

 

the undersigned will, if requested by PGT, deliver to PGT a certificate or opinion of local counsel from the International Jurisdiction which will confirm the matters referred to in Sections 11(c) and 11(d) above to the satisfaction of PGT, acting reasonably;

 

12.           the undersigned (i) is able to fend for itself in connection with the acquisition of the PGT Shares; (ii) has such knowledge and experience in business matters as to be capable of evaluating the merits and risks of its prospective investment in the PGT Shares; and (iii) has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment;

 

  

- 3 -

  

 

13.           the undersigned is not aware of any advertisement of any of the PGT Shares and is not acquiring the PGT Shares as a result of any form of general solicitation or general advertising including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

 

14.           no person has made to the undersigned any written or oral representations:

 

	
  

	
(a)

	
that any person will resell or repurchase any of the PGT Shares;

 

	
  

	
(b)

	
that any person will refund the purchase price of any of the PGT Shares;

 

	
  

	
(c)

	
as to the future price or value of any of the PGT Shares; or

 

	
  

	
(d)

	
that any of the PGT Shares will be listed and posted for trading on any stock exchange or automated dealer quotation system or that application has been made to list and post any of the PGT Shares on any stock exchange or automated dealer quotation system, except that currently certain market makers make market in the common shares of PGT on the OTCQB;

 

15.           the undersigned is acquiring the PGT Shares as principal for their own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalization thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in the PGT Shares;

 

16.           neither the SEC nor any other securities commission or similar regulatory authority has reviewed or passed on the merits of the PGT Shares;

 

17.           the undersigned acknowledges and agrees that PGT shall refuse to register any transfer of PGT Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from registration under the U.S. Securities Act;

 

18.           the undersigned understands and agrees that the PGT Shares will bear the following legend:

 

“NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.  “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.”

 

  

- 4 -

  

 

19.           the address of the undersigned included herein is the sole address of the undersigned as of the date of this certificate.

 

IN WITNESS WHEREOF, I have executed this Certificate of U.S. Shareholder.

	 	 	 	
Date:_________________________________, 2012

	 
	
Signature

	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Print Name	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Title (if applicable)	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Address	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	SSN/Tax ID	 	 	 	 

 

 

- 5 -

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