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Assumption Agreement To Be Bound by Shareholders Agreement
Assumption Agreement To Be Bound by Shareholders Agreement
AND TO: List all other Shareholders Bound by Shareholders Agreement (the "Parties")
WHEREAS pursuant to the terms of the Shareholders' Agreement there can be no transfer of
any of the shares of the Corporation except in certain circumstances and unless the transferee of
such shares first enters into this Assumption Agreement;
AND WHEREAS Full Name of Shareholder Transferring Shares to New Shareholder (the
"Transferor") proposes to transfer Number of Shares in Corporation being Acquired by New
Shareholder shares of the Corporation (the "Shares") to Name of Shareholder Acquiring Shares
in Corporation (the "Transferee");
AND WHEREAS the Transferee has agreed to observe and to be bound by the terms of the
Shareholders' Agreement so that the provisions thereof will govern the rights and obligations
among the Parties and the parties hereto regarding the organization and affairs of the Corporation
and the sale of shares of the Corporation under certain circumstances and the Transferor has
agreed to guarantee the due performance by the Transferee of all obligations imposed on the
Transferor or Transferee pursuant to the Shareholders' Agreement and to remain liable as
principal debtor in respect of all such obligations.
NOW THEREFORE for good and valuable consideration, the receipt and sufficiency of which
is hereby irrevocably acknowledged, the undersigned, intending to be legally bound hereby,
hereby covenants and agrees as follows:
.1 The Transferee acknowledges that the foregoing recitals are true and correct and
acknowledges having received and reviewed a copy of the Shareholders' Agreement.
.2 The Transferee covenants and agrees to be bound by the terms of the Shareholders'
Agreement in the same manner as if the Transferee had been an original party thereto and
to the same extent as the Transferor.
.3 The Transferee hereby represents and warrants that the Transferee is purchasing the
Shares as principal, for its own account and not as agent, trustee or representative for any
other person.
any other shall be given to the Transferee in accordance with the terms of the
Shareholders' Agreement, at:
.5 Unless specifically defined herein or unless the context otherwise requires, terms used
herein which are defined in the Shareholders' Agreement shall have the meanings
ascribed to such terms in the Shareholders' Agreement.
.6 This Agreement shall be governed by and construed in accordance with the laws of the
Province of Ontario and the laws of Canada applicable therein and shall be binding upon
the undersigned and their heirs, executors, administrators, successors, permitted assigns
and legal representatives. The undersigned hereby submit to the exclusive jurisdiction of
the Courts of the Province of Ontario in connection with this Acknowledgement.
IN WITNESS WHEREOF the undersigned has duly executed this Assumption Agreement of
the date first above written.