Common use of Material Decisions Clause in Contracts

Material Decisions. Until such time as Laurus and its affiliates no longer hold common shares representing 5% or more of the outstanding common shares of Cancable Parent (or securities representing the right to acquire 5% or more of the outstanding common shares of Cancable Parent), each of Cancable Parent, Cancable Canada and Cancable Subsidiary shall neither implement or effect (or otherwise resolve or agree to implement or effect), nor in any manner cause or permit any of their respective subsidiaries to implement or effect (or otherwise resolve or agree to implement or effect) any of the following actions without the prior approval of Laurus (which approval shall not be unreasonably withheld) and CVAS shall neither implement or effect (or otherwise resolve or agree to implement or effect) the action set forth in paragraph (j) below, nor cause or permit Cancable Parent, Cancable Canada, Cancable Subsidiary or any of their respective subsidiaries to implement or effect (or otherwise resolve to implement or effect) any of the following actions without the prior approval of Laurus (which shall not be unreasonably withheld): (a) except as contemplated by this Agreement, (i) declare or pay any dividends or make any other distribution in respect of any securities of each of Cancable Parent, Cancable Canada and Cancable Subsidiary, and (ii) make any distribution of any nature (including repayment of loans) to any person not acting at arm’s length with Cancable Parent, Cancable Canada and/or Cancable Subsidiary or any of their respective shareholders other than, in each case, contributions to the corporate expenses and overhead of CVAS not to exceed, when aggregated with all distributions made to CVAS contemplated by this paragraph (a) and all management services and analogous fees paid to CVAS, Cdn.$350,000 per annum; (b) sell or dispose of any assets or property by Cancable Parent, Cancable Canada and/or Cancable Subsidiary during any fiscal year in which any amount remains outstanding under the Secured Term Note (whether in one or more transactions) in contravention of the provisions of the Secured Term Note and in any fiscal year thereafter (whether in one or more transactions) with an aggregate book value in excess of $ Cdn.250,000; (c) make or commit to make during any fiscal quarter, capital expenditures exceeding, in the aggregate, 25% of the net operating cash flow of the company for such fiscal quarter (calculated in accordance with section 2 of this Agreement); (d) establish, acquire or otherwise become an equity holder (including, for greater certainty, a holder of securities convertible into equity) in any corporate entity or any partnership, equity joint venture or similar arrangements; (e) hire any employee whose annual remuneration exceeds Cdn.$300,000 per annum (inclusive of all benefits), or amend, terminate or otherwise alter or waive the terms of any employment, consulting or management contract with respect to an individual whose annual remuneration exceeds that amount; (f) enter into any transactions outside the ordinary course with officers, directors or employees or members of their families or other persons with whom they do not act at arm’s length; (g) enter into (other than in the ordinary course to fund working capital needs) or materially modify any credit facility; (h) create any mortgage, lien, charge or other form of encumbrance with respect to any of the assets of Cancable Parent, Cancable Canada and/or Cancable Subsidiary or their respective subsidiaries other than for the benefit of Laurus and other than Permitted Liens within the meaning ascribed thereto in Schedule A hereto; (i) materially alter the fundamental nature of the business of Cancable Parent, Cancable Canada and/or Cancable Subsidiary (other than in a manner consistent with the fundamental business presently undertaken by CVAS) or otherwise engage in other businesses or activities that are not incidental to the businesses or activities presently undertaken by Cancable Parent, Cancable Canada and/or Cancable Subsidiary; (j) enter into any agreement with a term in excess of one year which contemplates the payment by Cancable Parent, Cancable Canada and/or Cancable Subsidiary of more than Cdn.$750,000 in the aggregate during its term; (k) issue or sell any of the share in the capital of, or any rights, warrants or securities convertible into or exercisable or exchangeable for any share in the capital of, Cancable Parent, Cancable Canada and/or Cancable Subsidiary, including by way of initial public offering; (l) purchase any of the shares in the capital of Cancable Parent, Cancable Canada and/or Cancable Subsidiary, except pursuant to the exercise of any retraction or redemption right which attached to such shares in the capital of Cancable Parent, Cancable Canada and/or Cancable Subsidiary; (m) wind up, dissolve or liquidate Cancable Parent, Cancable Canada and/or Cancable Subsidiary; (n) continue under the laws of another jurisdiction of Cancable Parent, Cancable Canada and/or Cancable Subsidiary; (o) change the fiscal year of Cancable Parent, Cancable Canada and/or Cancable Subsidiary (other than the change in fiscal year to December 31 currently contemplated); or (p) amend the articles or by-laws of Cancable Parent, Cancable Canada and/or Cancable Subsidiary in such a manner as to adversely affect the interests of Laurus.

Material Decisions. Until such time as Laurus and its affiliates no longer hold common shares representing 5% or more of the outstanding common shares of Cancable Iview Parent (or securities representing the right to acquire 5% or more of the outstanding common shares of Cancable Iview Parent), each of Cancable Parent, Cancable Iview Parent and Iview Canada and Cancable Subsidiary shall neither implement or effect (or otherwise resolve or agree to implement or effect), nor in any manner cause or permit any of their respective subsidiaries to implement or effect (or otherwise resolve or agree to implement or effect) any of the following actions without the prior approval of Laurus (which approval shall not be unreasonably withheld) and CVAS CVAC and Parent shall neither implement or effect (or otherwise resolve or agree to implement or effect) the action set forth in paragraph (j) below, nor cause or permit Cancable Iview Parent, Cancable Canada, Cancable Subsidiary Iview Canada or any of their respective subsidiaries to implement or effect (or otherwise resolve to implement or effect) any of the following actions without the prior approval of Laurus (which shall not be unreasonably withheld): (a) except as contemplated by this Agreement, (i) declare or pay any dividends or make any other distribution in respect of any securities of each of Cancable Parent, Cancable Canada Iview Parent and Cancable SubsidiaryIview Canada, and (ii) make any distribution of any nature (including repayment of loans) to any person not acting at arm’s length with Cancable Iview Parent, Cancable and/or Iview Canada and/or Cancable Subsidiary or any of their respective shareholders other than, in each case, (A) contributions to the corporate expenses and overhead of CVAS Parent not to exceed, when aggregated with all distributions made to CVAS Parent contemplated by this paragraph (a) and all management services and analogous fees paid to CVASParent, Cdn.$350,000 per annum;annum and (B) any payments made to A.C. Technical Systems Ltd. in connection with operation costs or services rendered with respect to product development and marketing services. (b) sell or dispose of any assets or property by Cancable Parent, Cancable Iview Parent and/or Iview Canada and/or Cancable Subsidiary during any fiscal year in which any amount remains outstanding under the Secured Term Note (whether in one or more transactions) in contravention of the provisions of the Secured Term Note and in any fiscal year thereafter (whether in one or more transactions) with an aggregate book value in excess of $ Cdn.250,000Cdn.$250,000; (c) make or commit to make during any fiscal quarter, capital expenditures exceeding, in the aggregate, 25% of the net operating cash flow of the company for such fiscal quarter (calculated in accordance with section 2 of this Agreement); (d) establish, acquire or otherwise become an equity holder (including, for greater certainty, a holder of securities convertible into equity) in any corporate entity or any partnership, equity joint venture or similar arrangements; (e) hire any employee whose annual remuneration exceeds Cdn.$300,000 per annum (inclusive of all benefits), or amend, terminate or otherwise alter or waive the terms of any employment, consulting or management contract with respect to an individual whose annual remuneration exceeds that amount; (f) enter into any transactions outside the ordinary course with officers, directors or employees or members of their families or other persons with whom they do not act at arm’s length; (g) enter into (other than in the ordinary course to fund working capital needs) or materially modify any credit facility; (h) create any mortgage, lien, charge or other form of encumbrance with respect to any of the assets of Cancable Parent, Cancable Iview Parent and/or Iview Canada and/or Cancable Subsidiary or their respective subsidiaries other than for the benefit of Laurus and other than Permitted Liens within the meaning ascribed thereto in Schedule A hereto; (i) materially alter the fundamental nature of the business of Cancable Parent, Cancable Iview Parent and/or Iview Canada and/or Cancable Subsidiary (other than in a manner consistent with the fundamental business presently undertaken by CVASParent) or otherwise engage in other businesses or activities that are not incidental to the businesses or activities presently undertaken by Cancable Parent, Cancable Canada Iview Parent and/or Cancable SubsidiaryIview Canada; (j) enter into any agreement with a term in excess of one year which contemplates the payment by Cancable Parent, Cancable Iview Parent and/or Iview Canada and/or Cancable Subsidiary of more than Cdn.$750,000 in the aggregate during its term; (k) issue or sell any of the share in the capital of, or any rights, warrants or securities convertible into or exercisable or exchangeable for any share in the capital of, Cancable Parent, Cancable Canada Iview Parent and/or Cancable SubsidiaryIview Canada, including by way of initial public offering; (l) purchase any of the shares in the capital of Cancable Parent, Cancable Canada Iview Parent and/or Cancable SubsidiaryIview Canada, except pursuant to the exercise of any retraction or redemption right which attached to such shares in the capital of Cancable Parent, Cancable Canada Iview Parent and/or Cancable SubsidiaryIview Canada; (m) wind up, dissolve or liquidate Cancable Parent, Cancable Canada Iview Parent and/or Cancable SubsidiaryIview Canada; (n) continue under the laws of another jurisdiction of Cancable Parent, Cancable Canada Iview Parent and/or Cancable SubsidiaryIview Canada; (o) change the fiscal year of Cancable Parent, Cancable Canada Iview Parent and/or Cancable Subsidiary (other than the change in fiscal year to December 31 currently contemplated)Iview Canada; or (p) amend the articles or by-laws of Cancable Parent, Cancable Iview Parent and/or Iview Canada and/or Cancable Subsidiary in such a manner as to adversely affect the interests of Laurus.