AMENDED AND RESTATED GUARANTY
AMENDED
AND RESTATED GUARANTY
February
13,
2006
WHEREAS
Xxxxx X. Xxxxxxx has given a guarantee dated September 30, 2004 in favour of
Laurus Master Fund, Ltd. a Cayman Islands Company (“Laurus”)
(the
“2004
Xxxxxxx Guarantee”);
WHEREAS
Cancable Inc., an Ontario corporation (“Cancable
Canada”)
Cancable Holding Corp., a Delaware corporation (“Cancable
Holding”)
and
Laurus have entered into a Securities Purchase Agreement dated December 31,
2005
(as amended, modified or supplemented from time to time, the “2005
Securities Purchase Agreement”)
providing for the execution of the Related Agreements (as defined therein)(the
“2005
Related Agreements”);
WHEREAS
Iview Digital Video Solutions Inc., a federal Canadian corporation,
(“Iview”),
Creative Vistas, Inc. (the “Parent”)
and
Iview Holding Corp., a Delaware corporation (“Iview
Holding”)
have
entered into a Securities Purchase Agreement dated February 13, 2006 (as
amended, modified or supplemented from time to time, the “2006
Securities Purchase Agreement”)
providing for the execution of the Related Agreements (as defined therein)(
the
“2006
Related Agreements”);
WHEREAS
it is a condition of the 2006 Securities Purchase Agreement that the 2004
Xxxxxxx Guaranty is amended and restated to among other things include the
obligations pursuant to the 2005 Related Agreements and the 2006 Related
Agreements;
NOW
THEREFORE FOR VALUE RECEIVED, and in consideration of note purchases from,
loans
made or to be made or credit otherwise extended or to be extended by Laurus
to
or for the account of Cancable Canada, Iview and the Parent ( collectively
the
“Debtors”),
from
time to time and at any time and for other good and valuable consideration
and
to induce Laurus, in its discretion, to purchase such notes, make such loans
or
extensions of credit and to make or grant such renewals, extensions, releases
of
collateral or relinquishments of legal rights as Laurus may deem advisable,
the
undersigned (the “Guarantor”
or
“the
undersigned”)
irrevocably and unconditionally guarantees to Laurus, its successors, endorsees
and assigns the prompt payment when due (whether by acceleration or otherwise)
of all present and future obligations and liabilities of any and all kinds
of
the Debtors to Laurus and of all instruments of any nature evidencing or
relating to any such obligations and liabilities upon which any of the Debtors
is or may become liable to Laurus, whether incurred by the Debtors as makers,
endorsers, drawers, acceptors, guarantors, accommodation parties or otherwise,
and whether due or to become due, secured or unsecured, absolute or contingent,
joint or several, and however or whenever acquired by Laurus, whether arising
under, out of, or in connection with (i) the 2005 Securities Purchase
Agreement, (ii) each 2005 Related Agreement, (the 2005 Securities Purchase
Agreement and the 2005 Related Agreements, as each may be amended, modified,
restated or supplemented from time to time, are collectively referred to herein
as the “2005
Documents”),
(iii)
the 2006 Securities Purchase Agreement, (iv) each 2006 Related Agreement (the
2006 Securities Purchase Agreement and the Related Agreements, as each may
be
amended, modified, restated or supplemented from time to time are collectively
referred to herein as the “2006
Documents”)
or any
documents, instruments or agreements relating to or executed in connection
with
the 2005 Documents, 2006 Documents or any documents, instruments or agreements
referred to therein or otherwise, or any other indebtedness, obligations or
liabilities of any of the Debtors to Laurus, whether now existing or hereafter
arising, direct or indirect, liquidated or unliquidated, absolute or contingent,
due or not due and whether under, pursuant to or evidenced by a note, agreement,
guaranty, instrument or otherwise (all of which are herein collectively referred
to as the “Obligations”),
and
irrespective of the genuineness, validity, regularity or enforceability of
such
Obligations, or of any instrument evidencing any of the Obligations or of any
collateral therefor or of the existence or extent of such collateral, and
irrespective of the allowability, allowance or disallowance of any or all of
the
Obligations in any case commenced by or against any of the Debtors under Xxxxx
00, Xxxxxx Xxxxxx Code, the Bankruptcy
and Insolvency Act
(Canada)
(the “BIA”)
and
the Companies’
Creditors Arrangement Act
(the
“CCAA”)
including, without limitation, obligations or indebtedness of any or all of
the
Debtors for post-petition interest, fees, costs and charges that would have
accrued or been added to the Obligations but for the commencement of such case.
For greater certainty, the Indebtedness (as defined in the Debenture dated
as of
December 31, 2005 granted by A.C. Technical Systems Ltd. in favor of Laurus
registered as instrument No. DR463328) shall include the Obligations hereunder.
Terms not otherwise defined herein shall have the meaning assigned such terms
in
the 2006 Securities Purchase Agreement. In furtherance of the foregoing, the
undersigned hereby agree as follows:
1. |
No
Impairment.
Laurus may at any time and from time to time, either before or after
the
maturity thereof, without notice to or further consent of the undersigned,
extend the time of payment of, exchange or surrender any collateral
for,
renew or extend any of the Obligations or increase or decrease the
interest rate thereon, or any other agreement with any of the Debtors
or
with any other party to or person liable on any of the Obligations,
or
interested therein, for the extension, renewal, payment, compromise,
discharge or release thereof, in whole or in part, or for any modification
of the terms thereof or of any agreement between Laurus and any of
the
Debtors or any such other party or person, or make any election of
rights
Laurus may deem desirable under the United States Bankruptcy Code,
as
amended, the BIA, the CCAA, or any other federal, provincial or state
bankruptcy, reorganization, moratorium or insolvency law relating
to or
affecting the enforcement of creditors’ rights generally (any of the
foregoing, an “Insolvency
Law”)
without in any way impairing or affecting this Amended and Restated
Guaranty. This instrument shall be effective regardless of the subsequent
incorporation, merger, amalgamation or consolidation of the Debtors
or
Guarantor, or any change in the composition, nature, personnel or
location
of the Debtors or Guarantor and shall extend to any successor entity
to
the Debtors or Guarantor, including a debtor in possession or the
like
under any Insolvency Law.
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2. |
Guaranty
Absolute.
The undersigned guarantees that the Obligations will be paid strictly
in
accordance with the terms of the 2005 Documents and 2006 Documents
and/or
any other document, instrument or agreement creating or evidencing
the
Obligations, regardless of any law, regulation or order now or hereafter
in effect in any jurisdiction affecting any of such terms or the
rights of
the Debtors with respect thereto. Guarantor hereby knowingly accept
the
full range of risk encompassed within a contract of “continuing guaranty”
which risk includes the possibility that the Debtors will contract
additional indebtedness for which Guarantor may be liable hereunder
after
the Debtors’ financial condition or ability to pay their lawful debts when
they fall due has deteriorated, whether or not the Debtors have properly
authorized incurring such additional indebtedness. The undersigned
acknowledges that (i) no oral representations, including any
representations to extend credit or provide other financial accommodations
to the Debtors, have been made by Laurus to induce the undersigned
to
enter into this Amended and Restated Guaranty and (ii) any extension
of credit to the Debtors shall be governed solely by the provisions
of the
2005 Documents and 2006 Documents. The liability of the undersigned
under
this Amended and Restated Guaranty shall be absolute and unconditional,
in
accordance with its terms, and shall remain in full force and effect
without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence
whatsoever, including, without limitation: (a) any waiver,
indulgence, renewal, extension, amendment or modification of or addition,
consent or supplement to or deletion from or any other action or
inaction
under or in respect of the 2005 Documents and 2006 Documents or any
other
instruments or agreements relating to the Obligations or any assignment
or
transfer of any thereof, (b) any lack of validity or enforceability
of any 2005 Document and/or 2006 Document or other documents, instruments
or agreements relating to the Obligations or any assignment or transfer
of
any thereof, (c) any furnishing of any additional security to Laurus
or its assignees or any acceptance thereof or any release of any
security
by Laurus or its assignees, (d) any limitation on any party’s
liability or obligation under the 2005 Documents and/or 2006 Documents
or
any other documents, instruments or agreements relating to the Obligations
or any assignment or transfer of any thereof or any invalidity or
unenforceability, in whole or in part, of any such document, instrument
or
agreement or any term thereof, (e) any bankruptcy, insolvency,
reorganization, composition, adjustment, dissolution, liquidation
or other
like proceeding relating to the Debtors, or any action taken with
respect
to this Amended and Restated Guaranty by any trustee, receiver, interim
receiver, or receiver and manager, or by any court, in any such
proceeding, whether or not the undersigned shall have notice or knowledge
of any of the foregoing, (f) any exchange, release or nonperfection
of any collateral, or any release, or amendment or waiver of or consent
to
departure from any guaranty or security, for all or any of the Obligations
or (g) any other circumstance which might otherwise constitute a
defense available to, or a discharge of, the undersigned. Any amounts
due
from the undersigned to Laurus shall bear interest until such amounts
are
paid in full at the highest rate then applicable to the Obligations.
Obligations include post-petition interest whether or not allowed
or
allowable.
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2
3. |
Limited
Recourse
|
Notwithstanding
any other provision hereof, the liability of the undersigned hereunder and
the
recourse of Laurus for payment and performance of this guaranty and the
Obligations shall be limited to the Collateral, as defined in the Share Pledge
Agreement dated September 30, 2004 among the undersigned, A.C. Technical Systems
Ltd. and A.C. Technical Acquisition Corp. (now Creative Vistas Acquisition
Corp.) in favour of Laurus, and the Share Pledge Agreement dated December 31,
2005 among the Parent, Creative Vistas Acquisition Corp., Cancable Canada and
Cancable Holding in favour of Laurus, and any proceeds arising in respect of
any
transfer of the Collateral, and Laurus shall not have, under any circumstances,
have any right hereunder to any other assets of the undersigned.
4. |
Payment.
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3
(a)
|
Payment
shall be made to Laurus at the office of Laurus from time to time
on
demand as Obligations hereunder become due. The undersigned shall
make all
payments to Laurus on the Obligations without setoff, counterclaim,
restrictions or conditions of any kind and free and clear of, and
without
deduction or withholdings for or on account of, (i) any present or
future
duties, taxes, levies, imposts, fees, deductions, assessments,
withholdings or other charges of any nature whatsoever or interest,
penalties or other amounts in respect thereof imposed or levied by
or on
behalf of the Canadian Government or of any province or territory
thereof
or any authority or agency therein or thereof having power to tax
(collectively, “Taxes”); or (ii) any present or future stamp or
documentary taxes or any other excise or property taxes, charges
or
similar levies which arise from any payment made hereunder or from
the
execution, delivery or registration of, or otherwise with respect
to, this
Amended and Restated Guaranty or any of the other Documents (collectively,
“Other Taxes”) unless such deduction or withholding is required by law or
the administrative practice of any taxation
authority.
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(b)
|
If
the undersigned shall be required by law to deduct or withhold
in respect
of any Taxes or Other Taxes from or in respect of any sum payable
hereunder to Laurus, then:
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(i) |
the
sum payable shall be increased as necessary so that after making
all
required deductions and withholdings (including deductions and
withholdings applicable to additional sums payable under this Section)
Laurus receives an amount equal to the sum it would have received
had no
such deductions or withholdings been
made;
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(ii)
|
the
undersigned shall make such deductions and
withholdings;
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(iii)
|
the
undersigned shall pay the full amount deducted or withheld to the
relevant
taxing authority or other authority in accordance with applicable
law;
and
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(iv)
|
to
the extent not paid to Laurus pursuant to clause (i) above, the
undersigned shall also pay to Laurus, at the time interest is paid,
all
additional amounts which Laurus specifies as necessary to preserve
the
after-tax yield Laurus would have received if such Taxes or Other
Taxes
had not been imposed.
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(c) |
Within
thirty (30) days after the date of any payment by the undersigned
of Taxes
or Other Taxes, upon Laurus’ request, the undersigned shall furnish to
Laurus the original or a certified copy of a receipt evidencing payment
thereof, or other evidence of payment reasonably satisfactory to
Laurus.
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(d) |
The
undersigned will indemnify Laurus for the full amount of Taxes and
Other
Taxes paid by Laurus. If Laurus receives a refund in respect of any
Taxes
or Other Taxes for which Laurus has received payment from the undersigned
hereunder, so long as no Event of Default, or act, condition or event
which with notice or passage of time or both would constitute an
Event of
Default, shall exist or have occurred and be continuing, Laurus shall
hold
for the account of the undersigned, the amount of such refund plus
any
interest received (but only to the extent of indemnity payments made,
or
additional amounts paid, by the undersigned under this Section with
respect to the Taxes or Other Taxes giving rise to such refund).
If
Taxes or Other Taxes were not correctly or legally asserted, Laurus
shall,
upon request of the undersigned, and at its expense, provide such
documents to the undersigned in form and substance satisfactory to
Laurus,
as the undersigned may reasonably request, to enable the undersigned
to
contest such Taxes or Other Taxes pursuant to appropriate proceedings
then
available to the undersigned (so long as providing such documents
shall
not, in good faith determination of Laurus, have a reasonable likelihood
of resulting in any liability of Laurus). The obligations of the
undersigned under this Section shall survive the termination or revocation
of this Amended and Restated Guaranty and the 2005 Documents and
the 2006
Documents and the payment of all amounts payable under this Amended
and
Restated Guaranty and the 2005 Documents and the 2006
Documents.
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4
5. |
Limitation
on Obligations.
It is the intention of the undersigned that the maximum amount of
the
Obligations of the undersigned hereunder shall be equal to, but not
in
excess of, the highest rate permitted by applicable law then applicable
to
the Obligations. To that end, with respect to the determination of
the
“highest rate permitted by applicable law then applicable to the
Obligations”, but only to the extent such Obligations would otherwise be
avoidable, the Obligations of the undersigned hereunder shall be
limited
to the highest rate that the undersigned is permitted to pay in respect
of
the Obligations under any applicable Insolvency Law. Any such limitation
shall be apportioned amongst the Obligations owed to Laurus pro rata.
This
Section 5 is intended solely to preserve the rights of Laurus hereunder
to
the maximum extent permitted by applicable law, and neither the
undersigned nor any person shall have any rights under this Section
5 that
it would not otherwise have under any applicable
law.
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6. |
Waivers.
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(a) This
Amended and Restated Guaranty is a guaranty of payment and not of collection.
Laurus shall be under no obligation to institute suit, exercise rights or
remedies or take any other action against the Debtors or any other person liable
with respect to any of the Obligations or resort to any collateral security
held
by it to secure any of the Obligations as a condition precedent to the
undersigned being obligated to perform as agreed herein and the undersigned
hereby waives any and all rights which it may have by statute or otherwise
which
would require Laurus to do any of the foregoing. The undersigned further
consents and agrees that Laurus shall be under no obligation to marshal any
assets in favor of Guarantor, or against or in payment of any or all of the
Obligations. The undersigned hereby waives all suretyship defenses and any
rights to interpose any defense, counterclaim or offset of any nature and
description which the undersigned may have or which may exist between and among
Laurus, any of the Debtors and/or the undersigned with respect to the
undersigned’s obligations under this Amended and Restated Guaranty, or which the
Debtors may assert on the underlying debt, including but not limited to failure
of consideration, breach of warranty, fraud, payment (other than cash payment
in
full of the Obligations), statute of frauds, bankruptcy, infancy, statute of
limitations, accord and satisfaction, and usury.
5
(b) The
undersigned further waives (i) notice of the acceptance of this Amended and
Restated Guaranty, of the making of any such loans or extensions of credit,
and
of all notices and demands of any kind to which the undersigned may be entitled,
including, without limitation, notice of adverse change in any of the Debtors’
financial condition or of any other fact which might materially increase the
risk of the undersigned and (ii) presentment to or demand of payment from
anyone whomsoever liable upon any of the Obligations, protest, notices of
presentment, non-payment or protest and notice of any sale of collateral
security or any default of any sort.
(c) Notwithstanding
any payment or payments made by the undersigned hereunder, or any setoff or
application of funds of the undersigned by Laurus, the undersigned shall not
be
entitled to be subrogated to any of the rights of Laurus against any of the
Debtors or against any collateral or guarantee or right of offset held by Laurus
for the payment of the Obligations, nor shall the undersigned seek or be
entitled to seek any contribution, indemnification or reimbursement from the
Debtors in respect of payments made by the undersigned hereunder, until all
amounts owing to Laurus by the Debtors on account of the Obligations are paid
in
full and Laurus’ obligation to extend credit pursuant to the 2005 Documents and
2006 Documents have been terminated. If, notwithstanding the foregoing, any
amount shall be paid to the undersigned on account of such subrogation rights
at
any time when all of the Obligations shall not have been paid in full and
Laurus’ obligation to extend credit pursuant to the 2005 Documents and 2006
Documents shall not have been terminated, such amount shall be held by the
undersigned in trust for Laurus, segregated from other funds of the undersigned,
and shall forthwith upon, and in any event within two (2) business days of,
receipt by the undersigned, be turned over to Laurus in the exact form received
by the undersigned (duly endorsed by the undersigned to Laurus, if required),
to
be applied against the Obligations, whether matured or unmatured, in such order
as Laurus may determine, subject to the provisions of the 2005 Documents and
2006 Documents. Any and all present and future debts and obligations of the
Debtors to the undersigned are hereby waived and postponed in favor of, and
subordinated to the full payment and performance of, all present and future
debts and Obligations of the Debtors to Laurus.
7. |
Security.
All sums at any time to the credit of the undersigned and any property
of
the undersigned in Laurus’ possession or in the possession of any bank,
financial institution or other entity that directly or indirectly,
through
one or more intermediaries, controls or is controlled by, or is under
common control with, Laurus (each such entity, an “Affiliate”)
shall be deemed held by Laurus or such Affiliate, as the case may
be, as
security for any and all of the undersigned’s obligations to Laurus and to
any Affiliate of Laurus, no matter how or when arising and whether
under
this or any other instrument, agreement or otherwise.
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8. |
Representations
and Warranties.
The undersigned hereby represents and warrants (all of which
representations and warranties shall survive until all Obligations
are
indefeasibly satisfied in full and the 2005 Documents and 2006 Documents
have been irrevocably terminated),
that:
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6
(a) Legal,
Valid and Binding Character.
This
Amended and Restated Guaranty constitutes its legal, valid and binding
obligation enforceable in accordance with its terms, except as enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium
or other laws of general application affecting the enforcement of creditor’s
rights and general principles of equity that restrict the availability of
equitable or legal remedies.
(b) Violations.
The
execution, delivery and performance of this Amended and Restated Guaranty will
not violate any requirement of law applicable to it or any contract, agreement
or instrument to it is a party or by which it or any of its property is bound
or
result in the creation or imposition of any mortgage, lien or other encumbrance
other than to Laurus on any of its property or assets pursuant to the provisions
of any of the foregoing, which, in any of the foregoing cases, could reasonably
be expected to have, either individually or in the aggregate, a Material Adverse
Effect.
(c) Consents
or Approvals.
No
consent of any other person or entity (including, without limitation, any
creditor of the undersigned) and no consent, license, permit, approval or
authorization of, exemption by, notice or report to, or registration, filing
or
declaration with, any governmental authority is required in connection with
the
execution, delivery, performance, validity or enforceability of this Amended
and
Restated Guaranty by it, except to the extent that the failure to obtain any
of
the foregoing could not reasonably be expected to have, either individually
or
in the aggregate, a Material Adverse Effect.
(d) Litigation.
No
litigation, arbitration, investigation or administrative proceeding of or before
any court, arbitrator or governmental authority, bureau or agency is currently
pending or, to the best of its knowledge, threatened (i) with respect to
this Amended and Restated Guaranty or any of the transactions contemplated
by
this Amended and Restated Guaranty or (ii) against or affecting it, or any
of its property or assets, which, in each of the foregoing cases, if adversely
determined, could reasonably be expected to have a Material Adverse
Effect.
(e) Financial
Benefit.
It has
derived or expects to derive a financial or other advantage from each and every
loan, advance or extension of credit made under the 2005 Documents and 2006
Documents or other Obligation incurred by the Debtors to Laurus.
9. |
Acceleration.
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(a) If
any
breach of any covenant or condition or other event of default shall occur and
be
continuing under any agreement made by the Debtors or the undersigned to Laurus,
or the Debtors or the undersigned should at any time become insolvent, or make
a
general assignment, or if a proceeding in or under any Insolvency Law shall
be
filed or commenced by, or in respect of, any of the undersigned, or if a notice
of any lien, levy, or assessment is filed of record with respect to any assets
of the undersigned by the United States of America or Canada, or any respective
department, agency, or instrumentality of either country, or if any taxes or
debts owing at any time or times hereafter to any one of them becomes a lien
or
encumbrance upon any assets of the undersigned in Laurus’ possession, or
otherwise, any and all Obligations shall for purposes hereof, at Laurus’ option,
be deemed due and payable without notice notwithstanding that any such
Obligation is not then due and payable by the Debtors.
7
(b) The
undersigned will promptly notify Laurus of any default by such undersigned
in
its respective performance or observance of any term or condition of any
agreement to which the undersigned is a party if the effect of such default
is
to cause, or permit the holder of any obligation under such agreement to cause,
such obligation to become due prior to its stated maturity and, if such an
event
occurs, Laurus shall have the right to accelerate such undersigned’s obligations
hereunder.
10. |
Payments
from Guarantor.
Laurus, in its sole and absolute discretion, with or without notice
to the
undersigned, may apply on account of the Obligations any payment
from the
undersigned or any other Guarantor, or amounts realized from any
security
for the Obligations, or may deposit any and all such amounts realized
in a
non-interest bearing cash collateral deposit account to be maintained
as
security for the Obligations.
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11. |
Tax
Gross Up.
Any and all payments by the Guarantor hereunder, and any amounts
on
account of interest or deemed interest, shall be made free and clear
of
and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities
with
respect thereto, excluding taxes imposed on net income or franchise
taxes
of Laurus by the jurisdiction in which such person is organized or
has its
principal office (all such non-excluded taxes, levies, imposts,
deductions, charges withholdings and liabilities, collectively or
individually, “Taxes”).
If any Guarantor shall be required to deduct any Taxes from or in
respect
of any sum payable hereunder to Laurus, (i) the sum payable shall be
increased by the amount (an “additional
amount”)
necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section
11)
Laurus shall receive an amount equal to the sum it would have received
had
no such deductions been made, (ii) such Guarantor shall make such
deductions and (iii) such Guarantor shall pay the full amount
deducted to the relevant governmental authority in accordance with
applicable law.
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In
addition, the Guarantor agrees to pay to the relevant governmental authority
in
accordance with applicable law any present or future stamp or documentary taxes
or any other excise or property taxes, charges or similar levies that arise
from
any payment made hereunder or from the execution, delivery or registration
of,
or otherwise with respect to, this Amended and Restated Guaranty (“Other
Taxes”).
The
Guarantor shall deliver to Laurus official receipts, if any, in respect of
any
Taxes or Other Taxes payable hereunder promptly after payment of such Taxes
or
Other Taxes or other evidence of payment reasonably acceptable to
Laurus.
The
Guarantor hereby indemnifies and agrees to hold Laurus harmless from and against
Taxes and Other Taxes (including, without limitation, Taxes and Other Taxes
imposed on any amounts payable under this Section 11) paid by such person,
whether or not such Taxes or Other Taxes were correctly or legally asserted.
Such indemnification shall be paid within ten (10) days from the date on which
any such person makes written demand therefore specifying in reasonable detail
the nature and amount of such Taxes or Other Taxes.
8
12. |
Costs.
The undersigned shall pay on demand, all costs, fees and expenses
(including, without limitation, expenses for legal services of every
kind)
relating or incidental to the enforcement or protection of the rights
of
Laurus hereunder or under any of the
Obligations.
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13. |
No
Termination.
This is a continuing irrevocable guaranty and shall remain in full
force
and effect and be binding upon the undersigned, and the undersigned’s
successors and assigns, until all of the Obligations have been paid
in
full and Laurus’ obligation to extend credit pursuant to the 2005
Documents and 2006 Documents has been irrevocably terminated. If
any of
the present or future Obligations are guaranteed by persons, partnerships
or corporations in addition to the undersigned, the death, release
or
discharge in whole or in part or the bankruptcy, amalgamation, merger,
consolidation, incorporation, liquidation or dissolution of one or
more of
them shall not discharge or affect the liabilities of any undersigned
under this Amended and Restated
Guaranty.
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14. |
Recapture.
Anything in this Amended and Restated Guaranty to the contrary
notwithstanding, if Laurus receives any payment or payments on account
of
the liabilities guaranteed hereby, which payment or payments or any
part
thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside and/or required to be repaid to a trustee,
receiver, interim receiver or receiver and manager or any other party
under any Insolvency Law, common law or equitable doctrine, then
to the
extent of any sum not finally retained by Laurus, the undersigned’s
obligations to Laurus shall be reinstated and this Amended and Restated
Guaranty shall remain in full force and effect (or be reinstated)
until
payment shall have been made to Laurus, which payment shall be due
on
demand.
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15. |
Books
and Records.
The books and records of Laurus showing the account between Laurus
and the
Debtors shall be admissible in evidence in any action or proceeding,
shall
be binding upon the undersigned for the purpose of establishing the
items
therein set forth and shall constitute prima facie proof
thereof.
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16. |
No
Waiver.
No failure on the part of Laurus to exercise, and no delay in exercising,
any right, remedy or power hereunder shall operate as a waiver thereof,
nor shall any single or partial exercise by Laurus of any right,
remedy or
power hereunder preclude any other or future exercise of any other
legal
right, remedy or power. Each and every right, remedy and power hereby
granted to Laurus or allowed it by law or other agreement shall be
cumulative and not exclusive of any other, and may be exercised by
Laurus
at any time and from time to time.
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17. |
Waiver
of Jury Trial.
THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE
THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR
WITH
RESPECT TO THIS AMENDED AND RESTATED GUARANTY OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREBY OR RELATING OR INCIDENTAL HERETO. THE UNDERSIGNED
DOES
HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF LAURUS HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT LAURUS WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.
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18. |
Governing
Law; Jurisdiction; Amendments.
THIS INSTRUMENT CANNOT BE CHANGED OR TERMINATED ORALLY, AND SHALL
BE
GOVERNED, CONSTRUED AND INTERPRETED AS TO VALIDITY, ENFORCEMENT AND
IN ALL
OTHER RESPECTS IN ACCORDANCE WITH THE LAWS OF THE PROVINCE OF ONTARIO
AND
THE FEDERAL LAWS OF CANADA. THE UNDERSIGNED EXPRESSLY CONSENTS TO
THE
JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK,
COUNTY OF NEW YORK, AND OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK FOR ALL PURPOSES IN CONNECTION HEREWITH.
ANY
JUDICIAL PROCEEDING BY THE UNDERSIGNED AGAINST LAURUS INVOLVING,
DIRECTLY
OR INDIRECTLY ANY MATTER OR CLAIM IN ANY WAY ARISING OUT OF, RELATED
TO OR
CONNECTED HEREWITH SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF
THE STATE
OF NEW YORK, COUNTY OF NEW YORK OR THE UNITED STATES DISTRICT COURT
FOR
THE SOUTHERN DISTRICT OF NEW YORK. THE UNDERSIGNED FURTHER CONSENTS
THAT
ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT
LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION TO EITHER OF
THE
AFOREMENTIONED COURTS OR A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION
WITH
ANY PROCEEDINGS HEREUNDER, MAY BE SERVED INSIDE OR OUTSIDE OF THE
STATE OF
NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE PROVIDED A
REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER MANNER
AS
MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. THE UNDERSIGNED
WAIVES
ANY OBJECTION TO JURISDICTION AND VENUE OF ANY ACTION INSTITUTED
HEREON
AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR
VENUE OR
BASED UPON FORUM NON CONVENIENS.
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19. |
Judgment
Currency.
If, for the purpose of obtaining or enforcing judgment against any
Guarantor in any court in any jurisdiction, it becomes necessary
to
convert into any other currency (such other currency being hereinafter
in
this section referred to as the “Judgment
Currency”)
an amount due under this Amended and Restated Guaranty in any currency
(the “Obligation
Currency”)
other than the Judgment Currency, the conversion shall be made at
the rate
of exchange prevailing on the business day immediately preceding
(a) the date of actual payment of the amount due, in the case of any
proceeding in the courts of New York or in the courts of any other
jurisdiction that will give effect to such conversion being made
on such
date, or (b) the date on which the foreign court determines, in the
case of any proceeding in the courts of any other jurisdiction (the
applicable date as of which such conversion is made pursuant to this
section being hereinafter in this section referred to as the “Judgment
Conversion Date”).
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10
If,
in
the case of any proceeding in the court of any jurisdiction referred to in
the
preceding paragraph, there is a change in the rate of exchange prevailing
between the Judgment Conversion Date and the date of actual receipt of the
amount due in immediately available funds, the Guarantor shall pay such
additional amount (if any, but in any event not a lesser amount) as may be
necessary to ensure that the amount actually received in the Judgment Currency,
when converted at the rate of exchange prevailing on the date of payment, will
produce the amount of the Obligation Currency which could have been purchased
with the amount of the Judgment Currency stipulated in the judgment or judicial
order at the rate of exchange prevailing on the Judgment Conversion Date. Any
amount due from any Guarantor under this section shall be due as a separate
debt
and shall not be affected by judgment being obtained for any other amounts
due
under or in respect of this Amended and Restated Guaranty.
20. |
Severability.
To the extent permitted by applicable law, any provision of this
Amended
and Restated Guaranty which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the
extent
of such prohibition or unenforceability without invalidating the
remaining
provisions hereof, and any such prohibition or unenforceability in
any
jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.
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21. |
Amendments,
Waivers.
No amendment or waiver of any provision of this Amended and Restated
Guaranty nor consent to any departure by the undersigned therefrom
shall
in any event be effective unless the same shall be in writing executed
by
the undersigned directly affected by such amendment and/or waiver
and
Laurus.
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22. |
Notice.
All notices, requests and demands to or upon the undersigned, shall
be in
writing and shall be deemed to have been duly given or made (a) when
delivered, if by hand, (b) three (3) days after being sent, postage
prepaid, if by registered or certified mail, (c) when confirmed
electronically, if by facsimile, or (d) when delivered, if by a
recognized overnight delivery service in each event, to the numbers
and/or
address set forth beneath the signature of the
undersigned.
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23. |
This
Amended and Restated Guaranty may be executed in any number of
counterparts which shall, collectively and separately constitute
one
agreement. Any signature delivered by a party by facsimile transmission
or
by sending a scanned copy by electronic mail shall be deemed an original
signature hereto.
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24. |
Successors.
Laurus may, from time to time, without notice to the undersigned,
sell,
assign, transfer or otherwise dispose of all or any part of the
Obligations and/or rights under this Amended and Restated Guaranty.
Without limiting the generality of the foregoing, Laurus may assign,
or
grant participations to, one or more banks, financial institutions
or
other entities all or any part of any of the Obligations. In each
such
event, Laurus, its Affiliates and each and every immediate and successive
purchaser, assignee, transferee or holder of all or any part of the
Obligations shall have the right to enforce this Amended and Restated
Guaranty, by legal action or otherwise, for its own benefit as fully
as if
such purchaser, assignee, transferee or holder were herein by name
specifically given such right. Laurus shall have an unimpaired right
to
enforce this Amended and Restated Guaranty for its benefit with respect
to
that portion of the Obligations which Laurus has not disposed of,
sold,
assigned, or otherwise transferred.
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11
25. |
It
is understood and agreed that any person or entity that desires to
become
a Guarantor hereunder, or is required to execute a counterpart of
this
Amended and Restated Guaranty after the date hereof pursuant to the
requirements of any of the 2005 Documents or 2006 Documents, shall
become
Guarantor hereunder by (x) executing a joinder agreement in form and
substance satisfactory to Laurus, (y) delivering supplements to such
exhibits and annexes to such 2005 Documents or 2006 Documents as
Laurus
shall reasonably request and (z) taking all actions as specified in
this Amended and Restated Guaranty as would have been taken by such
Guarantor had it been an original party to this Amended and Restated
Guaranty, in each case with all documents required above to be delivered
to Laurus and with all documents and actions required above to be
taken to
the reasonable satisfaction of
Laurus.
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26. |
Release.
Nothing except cash payment in full of the Obligations shall release
the
undersigned from liability under this Amended and Restated
Guaranty.
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27. |
Limitation
of Obligations under this Amended and Restated Guaranty.
The Guarantor and Laurus (by its acceptance of the benefits of this
Amended and Restated Guaranty) hereby confirm that it is their intention
that this Amended and Restated Guaranty not constitute (i) a
fraudulent transfer or conveyance for purposes of the Bankruptcy
Code,
the Uniform
Fraudulent Conveyance Act
or
any similar federal, provincial or state law; or (ii) a preference or
a preferential transfer for purposes of the BIA or under any other
applicable bankruptcy, insolvency or similar law now or hereafter
in
effect in any bankruptcy, insolvency or similar proceeding with respect
to
the Debtors. To effectuate the foregoing intention, the Guarantor
which is
subject to the Bankruptcy
Code,
the Uniform
Fraudulent Conveyance Act
or
any similar US federal or state law and Laurus (by its acceptance
of the
benefits of this Amended and Restated Guaranty) hereby irrevocably
agrees
that the Obligations guaranteed by such Guarantor shall be limited
to such
amount as will, after giving effect to such maximum amount and all
other
(contingent or otherwise) liabilities of such Guarantor that are
relevant
under such laws and after giving effect to any rights to contribution
pursuant to any agreement providing for an equitable contribution
among
such Guarantor and the other Guarantor (including this Amended and
Restated Guaranty), result in the Obligations of such Guarantor under
this
Amended and Restated Guaranty in respect of such maximum amount not
constituting a fraudulent transfer or conveyance, preference or
preferential transfer.
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28. |
Understanding
With Respect to Waivers and Consents.
The Guarantor warrants and agrees that each of the waivers and consents
set forth in this Amended and Restated Guaranty is made voluntarily
and
unconditionally after consultation with outside legal counsel and
with
full knowledge of its significance and consequences, with the
understanding that events giving rise to any defense or right waived
may
diminish, destroy or otherwise adversely affect rights which such
Guarantor otherwise may have against the Debtors, Laurus or any other
person or entity or against any collateral. If, notwithstanding the
intent
of the parties that the terms of this Amended and Restated Guaranty
shall
control in any and all circumstances, any such waivers or consents
are
determined to be unenforceable under applicable law, such waivers
and
consents shall be effective to the maximum extent permitted by
law.
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29. |
Remedies
Not Exclusive.
The remedies conferred upon Laurus in this Amended and Restated Guaranty
are intended to be in addition to, and not in limitation of any other
remedy or remedies available to Laurus under applicable law or
otherwise.
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IN
WITNESS WHEREOF, this Amended and Restated Guaranty has been executed by the
undersigned this 13th day of February, 2006.
XXXXX
X. XXXXXXX
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/s/
XXXXX XXXXXXX
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