Document:

Unassociated Document

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933,
      AS
      AMENDED, OR ANY STATE SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR
      SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
      STATEMENT AS TO THIS NOTE UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IVIEW DIGITAL VIDEO
      SOLUTIONS INC. THAT SUCH REGISTRATION IS NOT REQUIRED.

     

    SECURED
      TERM NOTE

     

    FOR
      VALUE
      RECEIVED, IVIEW DIGITAL VIDEO SOLUTIONS INC., a Canadian corporation (the
“Borrower”),
      hereby promises to pay to LAURUS MASTER FUND, LTD., M&C Corporate Services
      Limited, P.O. Box 309 GT, Ugland House, South Church Street, George Town, Grand
      Cayman, Cayman Islands, Fax: 345-949-8080 (the “Holder”)
      or its
      registered assigns or successors in interest, on order, the sum of Two Million
      Dollars in lawful money of the United States (USD$2,000,000),
      together with any accrued and unpaid interest hereon, on February 23,
      2011
      (the “Maturity
      Date”)
      if not
      sooner paid. 

     

    Capitalized
      terms used herein without definition shall have the meanings ascribed to such
      terms in that certain Securities Purchase Agreement dated as of the date hereof
      between the Borrower, Iview Holding Corp., Creative Vistas, Inc. and the Holder
      (as amended, modified or supplemented from time to time, the “Purchase
      Agreement”).

     

    The
      following terms shall apply to this Note:

     

     

    ARTICLE
      I  

     

     

    INTEREST
      & AMORTIZATION

     

    
      	1.1      	
              Interest
                Rate.
                Subject to Sections 2.10
                and 3.8
                hereof, interest payable on the outstanding principal amount of this
                Note
                shall accrue at a rate per annum (the “Interest
                Rate”)
                equal to the “prime rate” published in The Wall Street Journal from time
                to time, plus two percent (2.00%). The prime rate shall be increased
                or
                decreased as the case may be for each increase or decrease in the
                prime
                rate in an amount equal to such increase or decrease in the prime
                rate;
                each change to be effective as of the day of the change in such rate.
                Subject to Section 1.1
                hereof, the Interest Rate shall not be less than seven percent (7%)
                per
                annum. Interest shall be calculated on the basis of a 360 day year.
                Interest shall accrue but not be payable during the period commencing
                on
                February 13,
                2006 and ending on March 31, 2006 and shall be payable, in arrears,
                commencing on April 1, 2006 and on the first business day of each
                consecutive calendar month thereafter (each, a “Repayment
                Date”)
                and on the Maturity Date, whether by acceleration or
                otherwise. 

            

    

     

    
      	1.2      	
              Currency.
                All principal, interest and other amounts owing under this Note,
                the
                Purchase Agreement or any Related Agreement that, in accordance with
                their
                terms, are paid in cash shall be paid in US dollars. All amounts
                denominated in other currencies shall be converted in the US dollar
                equivalent amount in accordance with the Exchange Rate on the date
                of
                calculation. “Exchange Rate” means, in relation to any amount of currency
                to be converted into US dollars pursuant to this Note, the US dollar
                exchange rate as published in the Wall Street Journal on the relevant
                date
                of calculation.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	1.3      	
              Taxes.

            

    

     

    
      	(a)  	
              Any
                and all payments by the Borrower hereunder, including any amounts
                received
                on redemption of the Note 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 the Holder 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 the Borrower shall be required to deduct any Taxes from or in
                respect
                of any sum payable hereunder to the Holder, (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 1.3)
                the Holder shall receive an amount equal to the sum it would have
                received
                had no such deductions been made, (ii) the Borrower shall make such
                deductions and (iii) the Borrower shall pay the full amount deducted
                to the relevant governmental authority in accordance with applicable
                law.

            

    

     

    
      	(b)  	
              In
                addition, Borrower 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 Note (“Other
                Taxes”).
                The Borrower shall deliver to the Holder 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 the
                Holder.

            

    

     

    
      	(c)  	
              The
                obligations of the Borrower under this Section 1.3
                shall survive the termination of this Note and the payment of the
                Note and
                all other amounts payable
                hereunder.

            

    

     

    
      	1.4      	
              Minimum
                Monthly Principal Amount.
                Amortizing payments of the aggregate principal amount outstanding
                under
                this Note shall begin on March 1,
                2007
                and shall recur on the first business day of each succeeding month
                thereafter until the Maturity Date as set forth in the amortization
                schedule annexed hereto as Schedule A on the Maturity Date, all
                outstanding amounts of principal together with any accrued and unpaid
                interest thereon, shall be due and payable. Notwithstanding any other
                provision of this Note, the Borrower is not obligated, except upon
                an
                Event of Default, to pay more than 25% of the Principal Amount prior
                to
                February 23,
                2011. 

            

    

     

    
      	1.5      	
              Mandatory
                Redemption.
                The total outstanding Principal Amount together with any accrued
                and
                unpaid interest and any and all other unpaid amounts which are then
                owing
                by the Borrower to the Holder under this Note, the Purchase Agreement
                and/or any other Related Agreement shall be due and payable on the
                Maturity Date.

            

    

     

    
      	1.6      	
              Optional
                Redemption of Amortizing Principal Amount.
                The Borrower will have the option of prepaying the outstanding Principal
                Amount (“Optional
                Redemption”),
                in whole or in part, by paying to the Holder a sum of money equal
                to the
                Applicable Principal Amount (as defined below) to be redeemed, together
                with accrued but unpaid interest thereon and any and all other sums
                due,
                accrued or payable to the Holder arising under this Note, the Purchase
                Agreement or any other Related Agreement (the “Redemption
                Amount”)
                on the day written notice of redemption (the “Notice
                of Redemption”)
                is given to the Holder. The Notice of Amortizing Redemption shall
                specify
                the date for such Optional Redemption (the “Redemption
                Payment Date”),
                which date shall be seven (7) business days after the date of the
                Notice
                of Redemption (the “Redemption
                Period”).
                On the Redemption Payment Date, the Redemption Amount shall be paid
                in
                good funds to the Holder. In the event the Borrower fails to pay
                the
                Redemption Amount on the Redemption Payment Date as set forth herein,
                then
                such Notice of Redemption will be null and void. For the purposes
                of this
                Section 1.6,
                the “Applicable
                Principal Amount”
                shall mean the outstanding Principal Amount to be repaid (to a maximum
                of
                40% of the original Principal Amount when aggregated with all optional
                prepayments of outstanding Principal Amount made in accordance with
                this
                provision from time to time during the term of this Note) and
                105%
                of the outstanding Principal Amount to be repaid in accordance with
                this
                provision in excess of 40% of the original Principal Amount. In the
                event
                of an optional prepayment made in accordance with this provision,
                the
                Borrower shall be entitled to require all or any portion of the Principal
                Amount repaid (but not any premium forming part of the Applicable
                Principal Amount) to be applied in satisfaction of all or any portion
                of
                one or more monthly amortization payments required to be made in
                accordance with Section 1.4 of this
                Note.

            

    

     

    
      
        
        

      

      
        -
          2 -

        
          

        

      

      
        
        

      

       

    

    ARTICLE
      II

    EVENTS
      OF DEFAULT

     

    Upon
      the
      occurrence and continuance of an Event of Default beyond any applicable grace
      period, the Holder may make all sums of principal, interest and other fees
      then
      remaining unpaid hereon and all other amounts payable hereunder immediately
      due
      and payable. In the event of such an acceleration, the amount due and owing
      to
      the Holder shall be 120% of the outstanding principal amount of the Note (plus
      accrued and unpaid interest and fees, if any) (the “Default
      Payment”).
      The
      Default Payment shall be applied first to any fees due and payable to Holder
      pursuant to this Note, the Purchase Agreement or the Related Agreements, then
      to
      accrued and unpaid interest due on the Note and then to outstanding principal
      balance of the Note.

     

    The
      occurrence of any of the following events set forth in
      Sections 2.1
      through
2.9,
      inclusive, is an “Event
      of Default”:

     

    
      	2.1      	
              Failure
                to Pay Principal, Interest or other Fees.
                The Borrower fails to pay when due any instalment of principal, interest
                or other fees hereon in accordance herewith, or the Borrower fails
                to pay
                when due any amount due under any other promissory note issued by
                Borrower, and in any such case, such failure shall continue for a
                period
                of three (3) days following the date upon which any such payment
                was
                due.

            

    

     

    
      	2.2      	
              Breach
                of Covenant.
                The Borrower breaches any covenant or any other term or condition
                of this
                Note or the Purchase Agreement in any material respect, or the Borrower
                or
                any of its Subsidiaries breaches any covenant or any other term or
                condition of any Related Agreement in any material respect and, any
                such
                case, such breach, if subject to cure, continues for a period of
                fifteen
                (15) days after the occurrence
                thereof.

            

    

     

    
      
        
        

      

      
        -
          3 -

        
          

        

      

      
        
        

      

    

     

    
      	2.3      	
              Breach
                of Representations and Warranties.
                Any representation or warranty made by the Borrower in this Note
                or the
                Purchase Agreement, or by the Borrower or any of its Subsidiaries
                in any
                Related Agreement, shall, in any such case, be false or misleading
                in any
                material respect on the date that such representation or warranty
                was made
                or deemed made.

            

    

     

    
      	2.4      	
              Receiver
                or Trustee.
                The Borrower or any of its Subsidiaries shall make an assignment
                for the
                benefit of creditors, or apply for or consent to the appointment
                of a
                receiver or trustee for it or for a substantial part of its property
                or
                business; or such a receiver or trustee shall otherwise be
                appointed.

            

    

     

    
      	2.5      	
              Judgments.
                Any money judgment, writ or similar final process shall be entered
                or
                filed against the Borrower or any of its Subsidiaries or any of their
                respective property or other assets for more than USD$250,000, and
                shall
                remain unvacated, unbonded or unstayed for a period of sixty
                days.

            

    

     

    
      	2.6      	
              Bankruptcy.
                Bankruptcy, insolvency, reorganization or liquidation proceedings
                or other
                proceedings or relief under any bankruptcy law or any law for the
                relief
                of debtors shall be instituted (i) by the Borrower or any of its
                Subsidiaries or (ii) against the Borrower or any of its Subsidiaries
                and,
                solely in the case of this clause (ii), remains undismissed for a
                period
                of 60 days.

            

    

     

    
      	2.7      	
              Failure
                to Deliver Replacement Note.
                The Borrower shall fail to deliver a replacement Note to Holder within
                seven (7) business days following the required date of such issuance
                pursuant to this Note, the Purchase Agreement or any Related Agreement
                (to
                the extent required under such
                agreements).

            

    

     

    
      	2.8      	
              Default
                Under Related Agreements or Other Agreements.
                The occurrence and continuance of (i) any Event of Default (as
                defined in the Purchase Agreement or any Related Agreement), (ii) any
                Event of Default under and as defined in any of (x) that certain
                Secured
                Term Note issued by Cancable Inc. (“Cancable”)
                to the Holder, dated December 31, 2005 (as amended, modified or
                supplemented from time to time, the “2005
                Term Note”),
                (x) the Purchase Agreement referred to in the 2005 Term Note (as
                amended,
                modified or supplemented from time to time, the “2005
                Purchase Agreement”)
                and/or (y) any Related Agreement referred to in the 2005 Purchase
                Agreement (as each may be amended, modified or supplemented from
                time to
                time and/or (iii) any event of default (or similar term) under any
                other
                indebtedness.

            

    

     

    
      	2.9      	
              Change
                in Control.
                

            

    

     

    
      	(a)  	
              (i) Any
                person or company (other than the Holder) or any person or company
                acting
                jointly or in concert with any person or company (other than the
                Holder)
                is or becomes the “beneficial owner” (as defined in Rules 13(d)-3 and
                13(d)-5 under the Exchange
                Act),
                directly or indirectly, of 35% or more on a fully diluted basis of
                the
                then outstanding voting equity interest of the Borrower or (ii) the
                Board of Directors of the Borrower shall cease to consist of a majority
                of
                the Board of Directors of the Borrower on the date hereof (or directors
                appointed by a majority of the Board of Directors in effect immediately
                prior to such appointment).

            

    

     

    
      
        
        

      

      
        -
          4 -

        
          

        

      

      
        
        

      

    

     

    
      	(b)  	
              (i) Any
                person or company (other than the Holder) or any person or company
                acting
                jointly or in concert with any person or company (other than the
                Holder)
                is or becomes the “beneficial owner” (as defined in Rules 13(d)-3 and
                13(d)-5 under the Exchange
                Act),
                directly or indirectly, of 35% or more on a fully diluted basis of
                the
                then outstanding voting equity interest of the Parent or (ii) the
                Board of Directors of the Parent shall cease to consist of a majority
                of
                the Board of Directors of the Parent on the date hereof (or directors
                appointed by a majority of the Board of Directors in effect immediately
                prior to such appointment).

            

    

     

    
      	(c)  	
              (i) Any
                person or company (other than the Holder) or any person or company
                acting
                jointly or in concert with any person or company (other than the
                Holder)
                is or becomes the “beneficial owner” (as defined in Rules 13(d)-3 and
                13(d)-5 under the Exchange
                Act),
                directly or indirectly, of 35% or more on a fully diluted basis of
                the
                then outstanding voting equity interest of Iview Holding Corp. or
                (ii) the Board of Directors of the Iview Holding Corp. shall cease to
                consist of a majority of the Board of Directors of Iview Holding
                Corp on
                the date hereof (or directors appointed by a majority of the Board
                of
                Directors in effect immediately prior to such
                appointment).

            

    

     

    
      	2.10      	
              Default
                Interest Rate.
                Following the occurrence and during the continuance of an Event of
                Default
                and following the expiration of all applicable notice and cure periods
                related thereto, the Borrower shall pay additional interest on this
                Note
                on a monthly basis in an amount equal to ten (10%) per annum, and
                all
                outstanding obligations under this Note, including unpaid interest,
                shall
                continue to accrue such additional interest from the date of such
                Event of
                Default until the date such Event of Default is cured or
                waived. 

            

    

     

    
      	2.11      	
              Cumulative
                Remedies.
                The remedies under this Note shall be
                cumulative.

            

    

     

    ARTICLE
      III

    MISCELLANEOUS

     

    
      	3.1      	
              Failure
                or Indulgence Not Waiver.
                No failure or delay on the part of the Holder hereof in the exercise
                of
                any power, right or privilege hereunder shall operate as a waiver
                thereof,
                nor shall any single or partial exercise of any such power, right
                or
                privilege preclude other or further exercise thereof or of any other
                right, power or privilege. All rights and remedies existing hereunder
                are
                cumulative to, and not exclusive of, any rights or remedies otherwise
                available.

            

    

     

    
      	3.2      	
              Notices.
                Any notice herein required or permitted to be given shall be in writing
                and provided in accordance with the terms of the Purchase
                Agreement.

            

    

     

    
      	3.3      	
              Amendment
                Provision.
                The term “Note” and all reference thereto, as used throughout this
                instrument, shall mean this instrument as originally executed, or
                if later
                amended or supplemented, then as so amended or supplemented, and
                any
                successor instrument issued pursuant to Section 3.4
                hereof, as it may be amended or
                supplemented.

            

    

     

    
      	3.4      	
              Assignability.
                This Note shall be binding upon the Borrower and its successors and
                assigns, and shall be binding upon and inure to the benefit of the
                Holder
                and its successors and assigns, and may be assigned by the Holder
                in
                accordance with the requirements of the Purchase Agreement. This
                Note
                shall not be assigned by the Borrower without the consent of the
                Holder.

            

    

     

    
      
        
        

      

      
        -
          5 -

        
          

        

      

      
        
        

      

    

     

    
      	3.5      	
              Governing
                Law.
                This Note shall be governed by and construed in accordance with the
                laws
                of the State of New York, without regard to principles of conflicts
                of
                laws. Any action brought by either party against the other concerning
                the
                transactions contemplated by this Agreement shall be brought only
                in the
                state courts of New York or in the federal courts located in the
                state of
                New York. Both parties to this Note agree to submit to the jurisdiction
                of
                such courts. The prevailing party shall be entitled to recover from
                the
                other party its reasonable attorney’s fees and costs. In the event that
                any provision of this Note is invalid or unenforceable under any
                applicable statute or rule of law, then such provision shall be deemed
                inoperative to the extent that it may conflict therewith and shall
                be
                deemed modified to conform with such statute or rule of law. Any
                such
                provision which may prove invalid or unenforceable under any law
                shall not
                affect the validity or unenforceability of any other provision of
                this
                Note. Nothing contained herein shall be deemed or operate to preclude
                the
                Holder from bringing suit or taking other legal action against the
                Borrower in any other jurisdiction to collect on the Borrower’s
                obligations to Holder, to realize on any collateral or any other
                security
                for such obligations, or to enforce a judgment or other court in
                favour of
                the Holder.

            

    

     

    
      	3.6      	
              Maximum
                Payments.
                Nothing contained herein shall be deemed to establish or require
                the
                payment of a rate of interest or other charges in excess of the maximum
                permitted by applicable law. In the event that the rate of interest
                required to be paid or other charges hereunder exceed the maximum
                permitted by such law, any payments in excess of such maximum shall
                be
                credited against amounts owed by the Borrower to the Holder and thus
                refunded to the Borrower.

            

    

     

    
      	3.7      	
              Security
                Interest and Guarantee.
                The Holder has been granted a security interest in certain assets of
                the Borrower and its affiliates as more fully described in certain
                Related
                Agreements (as defined in the Purchase Agreement and the 2005 Purchase
                Agreement). The obligations of the Borrower under this Note are guaranteed
                by certain affiliates of the Borrower pursuant to the Amended and
                Restated
                Guaranty dated as of the date hereof granted by the Parent, Cancable,
                Cancable Holding Corp., Cancable, Inc., Iview Holding Corp.,
                Iview, Creative
                Vistas Acquisition Corp., and A.C. Technical Systems Ltd. and the
                Amended
                and Restated Guaranty dated as of the date hereof granted by Brent
                W.
                Swanick. 

            

    

     

    
      	3.8      	
              Construction.
                Each party acknowledges that its legal counsel participated in the
                preparation of this Note and, therefore, stipulates that the rule
                of
                construction that ambiguities are to be resolved against the drafting
                party shall not be applied in the interpretation of this Note to
                favour
                any party against the other. 

            

    

     

    
      	3.9      	
              Cost
                of Collection.
                If default is made in the payment of this Note, the Borrower shall
                pay to
                Holder reasonable costs of collection, including reasonable attorney’s
                fees. 

            

    

     

    
      
        
        

      

      
        -
          6 -

        
          

        

      

      
        
        

      

       

    

    IN
      WITNESS WHEREOF,
      the
      Borrower has caused this Note to be signed in its name effective as of this
      13th
      day
      of
      February, 2006.

     

    
      	 	 	
              IVIEW
                DIGITAL VIDEO SOLUTIONS INC. (Canada)

               

            
	 	 	
              By:

            	
              /s/
                SAYAN NAVARATNAM

            
	 	 	 	
              Name:
                Sayan Navartnam

              Title:
                President

            

    

    

     

    ACKNOWLEDGED
      BY:

     

    
      	 	 	
              CREATIVE
                VISTAS, INC. (Arizona)

               

            
	 	 	
              By:

            	
              /s/
                DOMINIC BURNS

            
	 	 	 	
              Name:
                Dominic Burns

              Title:
                President

            

    

    

     

    
      	 	 	
              IVIEW
                HOLDING CORP. (Delaware)

               

            
	 	 	
              By:

            	
              /s/
                DOMINIC BURNS

            
	 	 	 	
              Name:
                Dominic Burns

              Title:
                President

            

    

     

     

    
      	 	 	
              CANCABLE
                INC. (Ontario)

               

            
	 	 	
              By:

            	
              /s/
                HEUNG HUNG LEE

            
	 	 	 	
              Name:
                Heung Hung Lee

              Title:
                Secretary

            

    

    

     

    
      	 	 	
              CANCABLE
                HOLDING CORP. (Delaware)

               

            
	 	 	
              By:

            	
              /s/
                DOMINIC BURNS

            
	 	 	 	
              Name:
                Dominic Burns

              Title:
                President

            

    

     

    
      
        
        

      

      
        -
          7 -

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              CANCABLE,
                INC. (Nevada)

               

            
	 	 	
              By:

            	
              /s/
                ROSS JEPSON

            
	 	 	 	
              Name:
                Ross Jepson

              Title:
                President and Secretary

            

    

     

     

    
      	 	 	
              CREATIVE
                VISTAS ACQUISITION CORP. (Ontario)

               

            
	 	 	
              By:

            	
              /s/
                SAYAN NAVARATNAM

            
	 	 	 	
              Name:
                Sayan Navaratnam

              Title:
                President and Secretary

            

    

    

     

    
      	 	 	
              A.C.
                TECHNICAL SYSTEMS LTD. (Ontario)

               

            
	 	 	
              By:

            	
              /s/
                DOMINIC BURNS

            
	 	 	 	
              Name:
                Dominic Burns

              Title:
                President and Secretary

            

    

     

    
      
        
        

      

      
        -
          8 -

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      “A”

     

    AMORTIZATION
      SCHEDULE

     

    
      	
              Months

            	 	
              Monthly
                Amortization

            
	 	 	 
	
              March
                2007 - February 2011

            	 	
              USD$8,333.34

            
	 	 	 
	
              Maturity
                Date

            	 	
              USD$1,600,000Unassociated Document

    THIS
      OPTION AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THE OPTION
      HAVE
      NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
      SECURITIES LAWS. THIS OPTION AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF
      THIS
      OPTION MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
      OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS OPTION UNDER SAID ACT AND
      ANY
      APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO IVIEW HOLDING CORP. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

     

    Right
      to
      Purchase up to 20 Shares of Common Stock of Iview Holding Corp. (subject to
      adjustment as provided herein)

     

    OPTION

     

    
      	 No. _________________	
               Issue
                Date: February 13,
                2006

            

    

     

    Iview
      Holding Corp. a corporation organized under the laws of the State of Delaware
      (“Company”),
      hereby certifies that, for value received, LAURUS MASTER FUND, LTD. or assigns
      (the “Holder”),
      is
      entitled, subject to the terms set forth below, to purchase from the Company
      (as
      defined herein) from and after the date of this Option and at any time or from
      time to time, up to 20 fully
      paid and nonassessable shares of Common Stock (as hereinafter defined),
      $0.01 par
      value
      per share, at the applicable Exercise Price per share (as defined below). The
      number and character of such shares of Common Stock and the applicable Exercise
      Price per share are subject to adjustment as provided herein.

     

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

     

    (a) The
      term
“Affiliate”
means
      any person that directly, or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with the person
      specified. For purposes of this definition, control of a person means the
      ownership, directly or indirectly, of more than 50% of the voting or equity
      securities or other interests of any such person.

     

    (b) The
      term
“Company”
shall
      include Iview Holding Corp. and any corporation which shall succeed, or assume
      the obligations of, Iview Holding Corp. hereunder.

     

    (c) The
      term
“Common
      Stock”
      includes (i) the Company’s Common Stock, par value $0.01 per share; and (ii) any
      other securities into which or for which any of the securities described in
      (a)
      may be converted or exchanged pursuant to a plan of recapitalization,
      reorganization, merger, sale of assets or otherwise.

     

    (d) The “Exchange
      Act”
shall
      mean the Securities
      Exchange Act (1934).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (e) The
      “Exercise
      Price”
      applicable under this Option shall be a price of $0.01.

     

    (f) The
      term
“Other
      Securities”
refers
      to any stock (other than Common Stock) and other securities of the Company
      or
      any other person (corporate or otherwise) which the holder of the Option at
      any
      time shall be entitled to receive, or shall have received, on the exercise
      of
      the Option, in lieu of or in addition to Common Stock, or which at any time
      shall be issuable or shall have been issued in exchange for or in replacement
      of
      Common Stock or Other Securities pursuant to Section 4
      or
      otherwise.

     

    (g) The
      term
“Purchase
      Agreement”
refers
      to that certain Securities Purchase Agreement dated as of the date hereof among
      the Holder, Iview Digital Video Solutions Inc. and the Company.

     

    1. Exercise
      of Option.

     

    1.1 Number
      of Shares Issuable upon Exercise.
      From
      and after the date hereof, the Holder shall be entitled to receive, upon
      exercise of this Option in whole or in part, by delivery of an original or
      fax
      copy of an exercise notice in the form attached hereto as Exhibit A (the
“Exercise
      Notice”),
      shares of Common Stock of the Company, subject to adjustment pursuant to Section
      4.
      

     

    1.2 Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of the Option, upon the request of
      the
      holder hereof acknowledge in writing its continuing obligation to afford to
      such
      holder any rights to which such holder shall continue to be entitled after
      such
      exercise in accordance with the provisions of the Option. If the holder shall
      fail to make any such request, such failure shall not affect the continuing
      obligation of the Company to afford to such holder any such rights.

     

    1.3 Trustee
      for Option Holders.
      In the
      event that a bank or trust company shall have been appointed as trustee for
      the
      holders of the Option pursuant to Subsection 3.2,
      such
      bank or trust company shall have all the powers and duties of an option agent
      (as hereinafter described) and shall accept, in its own name for the account
      of
      the Company or such successor person as may be entitled thereto, all amounts
      otherwise payable to the Company or such successor, as the case may be, on
      exercise of this Option pursuant to this Section 1.

     

    2. Procedure
      for Exercise.

     

    2.1 Delivery
      of Stock Certificates, Etc., on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Option shall be deemed to be issued to the Holder as the record owner of such
      shares as of the close of business on the date on which this Option shall have
      been surrendered and payment made for such shares in accordance herewith. As
      soon as practicable after the exercise of this Option in full or in part, and
      in
      any event within three (3) business days thereafter, the Company at its expense
      (including the payment by it of any applicable issue taxes) will cause to be
      issued in the name of and delivered to the Holder, or as such Holder (upon
      payment by such Holder of any applicable transfer taxes) may direct in
      compliance with applicable securities laws, a certificate or certificates for
      the number of duly and validly issued, fully paid and nonassessable shares
      of
      Common Stock (or Other Securities) to which such Holder shall be entitled on
      such exercise, together with any other stock or other securities and property
      (including cash, where applicable) to which such Holder is entitled upon such
      exercise pursuant to Section 1
      or
      otherwise.

     

    
      
        
        

      

      
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          2
          -

        
          

        

      

      
        
        

      

       

    

    2.2 Exercise.
      Payment
      shall be made in cash or by certified or official bank check payable to the
      order of the Company equal to the applicable aggregate Exercise Price for the
      number of Common Shares specified in such Exercise Notice (as such exercise
      number shall be adjusted to reflect any adjustment in the total number of shares
      of Common Stock issuable to the Holder per the terms of this Option) and the
      Holder shall thereupon be entitled to receive the number of duly authorized,
      validly issued, fully-paid and non-assessable shares of Common Stock (or Other
      Securities) determined as provided herein.

     

    3. Effect
      of Reorganization, Etc.; Adjustment of Exercise Price.

     

    3.1 Reorganization,
      Consolidation, Merger, Etc.
      In case
      at any time or from time to time, the Company shall (a) effect a reorganization,
      (b) consolidate with or merge into any other person, or (c) transfer all or
      substantially all of its properties or assets to any other person under any
      plan
      or arrangement contemplating the dissolution of the Company, then, in each
      such
      case, as a condition to the consummation of such a transaction, proper and
      adequate provision shall be made by the Company whereby the Holder of this
      Option, on the exercise hereof as provided in Section 1
      at any
      time after the consummation of such reorganization, consolidation or merger
      or
      the effective date of such dissolution, as the case may be, shall receive,
      in
      lieu of the Common Stock (or Other Securities) issuable on such exercise prior
      to such consummation or such effective date, the stock and other securities
      and
      property (including cash) to which such Holder would have been entitled upon
      such consummation or in connection with such dissolution, as the case may be,
      if
      such Holder had so exercised this Option, immediately prior thereto, all subject
      to further adjustment thereafter as provided in Section 4.

     

    3.2 Dissolution.
      In the
      event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, concurrently with
      any distributions made to holders of its Common Stock, shall at its expense
      deliver or cause to be delivered to the Holder the stock and other securities
      and property (including cash, where applicable) receivable by the Holder of
      the
      Option pursuant to Section 3.1,
      or, if
      the Holder shall so instruct the Company, to a bank or trust company specified
      by the Holder and having its principal office in New York, NY as trustee for
      the
      Holder of the Option (the “Trustee”).

     

    3.3 Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3,
      this
      Option shall continue in full force and effect and the terms hereof shall be
      applicable to the shares of stock and other securities and property receivable
      on the exercise of this Option after the consummation of such reorganization,
      consolidation or merger or the effective date of dissolution following any
      such
      transfer, as the case may be, and shall be binding upon the issuer of any such
      stock or other securities, including, in the case of any such transfer, the
      person acquiring all or substantially all of the properties or assets of the
      Company, whether or not such person shall have expressly assumed the terms
      of
      this Option as provided in Section 4.
      In the
      event this Option does not continue in full force and effect after the
      consummation of the transactions described in this Section 3,
      then
      the Company’s securities and property (including cash, where applicable)
      receivable by the Holders of the Option will be delivered to Holder or the
      Trustee as contemplated by Section 3.2.

     

    
      
        
        

      

      
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          3
          -

        
          

        

      

      
        
        

      

       

    

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock, (b) subdivide
      its
      outstanding shares of Common Stock, or (c) combine its outstanding shares of
      the
      Common Stock into a smaller number of shares of the Common Stock, then, in
      each
      such event, the Exercise Price shall, simultaneously with the happening of
      such
      event, be adjusted by multiplying the then Exercise Price by a fraction, the
      numerator of which shall be the number of shares of Common Stock outstanding
      immediately prior to such event and the denominator of which shall be the number
      of shares of Common Stock outstanding immediately after such event, and the
      product so obtained shall thereafter be the Exercise Price then in effect.
      The
      Exercise Price, as so adjusted, shall be readjusted in the same manner upon
      the
      happening of any successive event or events described herein in this Section
      4.
      The
      number of shares of Common Stock that the holder of this Option shall
      thereafter, on the exercise hereof as provided in Section 1,
      be
      entitled to receive shall be increased to a number determined by multiplying
      the
      number of shares of Common Stock that would otherwise (but for the provisions
      of
      this Section 4)
      be
      issuable on such exercise by a fraction of which (a) the numerator is the
      Exercise Price that would otherwise (but for the provisions of this Section
      4)
      be in
      effect, and (b) the denominator is the Exercise Price in effect on the date
      of
      such exercise.

     

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of the Option, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of the
      Option and prepare a certificate setting forth such adjustment or readjustment
      and showing in detail the facts upon which such adjustment or readjustment
      is
      based, including a statement of (a) the consideration received or receivable
      by
      the Company for any additional shares of Common Stock (or Other Securities)
      issued or sold or deemed to have been issued or sold, (b) the number of shares
      of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
      and (c) the Exercise Price and the number of shares of Common Stock to be
      received upon exercise of this Option, in effect immediately prior to such
      adjustment or readjustment and as adjusted or readjusted as provided in this
      Option. The Company will forthwith mail a copy of each such certificate to
      the
      holder of this Option and any Option agent of the Company (appointed pursuant
      to
      Section 9
      hereof).

     

    6. Reservation
      of Stock, Etc., Issuable on Exercise of Option.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of the Option, shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of the
      Option.

     

    7. Assignment:
      Exchange of Option.
      Subject
      to compliance with applicable securities laws, this Option, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”),
      in
      whole or in part, at any time, to any person other than, upon and during the
      continuance of an event of default under any indebtedness owed by the Company
      or
      any of its Affiliates to the Holder or any of its Affiliates (after the expiry
      of all applicable grace periods), a competitor of the Company or any of its
      Affiliates or a person or entity whom senior management of the Company
      determines, acting reasonably, to be adverse in interest to the Company or
      its
      business. On the surrender for exchange of this Option, with the Transferor’s
      endorsement in the form of Exhibit B attached hereto (the “Transferor
      Endorsement Form”)
      and
      together with evidence reasonably satisfactory to the Company demonstrating
      compliance with applicable securities laws, which shall include, without
      limitation, the provision of a legal opinion from the Transferor’s counsel (at
      the Company’s expense) that such transfer is exempt from the registration
      requirements of applicable securities laws, and with payment by the Transferor
      of any applicable transfer taxes) will issue and deliver to or on the order
      of
      the Transferor thereof a new Option of like tenor, in the name of the Transferor
      and/or the transferee(s) specified in such Transferor Endorsement Form (each
      a
“Transferee”),
      calling in the aggregate on the face or faces thereof for the number of shares
      of Common Stock called for on the face or faces of the Option so surrendered
      by
      the Transferor.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

       

    

    8. Replacement
      of Option.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Option and, in the case of any such loss,
      theft or destruction of this Option, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Option,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Option
      of like tenor.

     

    9. Option
      Agent.
      The
      Company may, by written notice to each Holder of the Option, appoint an agent
      for the purpose of issuing Common Stock (or Other Securities) on the exercise
      of
      this Option pursuant to Section 1,
      exchanging this Option pursuant to Section 7,
      and
      replacing this Option pursuant to Section 8,
      or any
      of the foregoing, and thereafter any such issuance, exchange or replacement,
      as
      the case may be, shall be made at such office by such agent.

     

    10. Transfer
      on the Company’s Books.
      Until
      this Option is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

     

    11. Notices,
      Etc.
      All
      notices and other communications from the Company to the Holder of this Option
      shall be mailed by first class registered or certified mail, postage prepaid,
      at
      such address as may have been furnished to the Company in writing by such Holder
      or, until any such Holder furnishes to the Company an address, then to, and
      at
      the address of, the last Holder of this Option who has so furnished an address
      to the Company.

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

       

    

    12. Miscellaneous.
      This
      Option and any term hereof may be changed, waived, discharged or terminated
      only
      by an instrument in writing signed by the party against which enforcement of
      such change, waiver, discharge or termination is sought. This Option shall
      be
      governed by and construed in accordance with the laws of State of New York
      without regard to principles of conflicts of laws. Any action brought concerning
      the transactions contemplated by this Option shall be brought only in the state
      courts of New York or in the federal courts located in the state of New York;
      provided, however, that the Holder may choose to waive this provision and bring
      an action outside the state of New York. The individuals executing this Option
      on behalf of the Company agree to submit to the jurisdiction of such courts
      and
      waive trial by jury. The prevailing party shall be entitled to recover from
      the
      other party its reasonable attorney’s fees and costs. In the event that any
      provision of this Option is invalid or unenforceable under any applicable
      statute or rule of law, then such provision shall be deemed inoperative to
      the
      extent that it may conflict therewith and shall be deemed modified to conform
      with such statute or rule of law. Any such provision which may prove invalid
      or
      unenforceable under any law shall not affect the validity or enforceability
      of
      any other provision of this Option. The headings in this Option are for purposes
      of reference only, and shall not limit or otherwise affect any of the terms
      hereof. The invalidity or unenforceability of any provision hereof shall in
      no
      way affect the validity or enforceability of any other provision hereof. The
      Company acknowledges that legal counsel participated in the preparation of
      this
      Option and, therefore, stipulates that the rule of construction that ambiguities
      are to be resolved against the drafting party shall not be applied in the
      interpretation of this Option to favor any party against the other
      party.

     

    [Balance
      of the page intentionally left blank; signature page
      follows.]

     

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

    

    IN
      WITNESS WHEREOF,
      the
      Company has executed this Option as of the date first written
      above.

     

    
      	
              WITNESS:

               

            	 	
              IVIEW
                HOLDING CORP. (Delaware)

               

            
	
              /s/
                HEUNG HUNG LEE

            	
              By:

            	
              /s/
                DOMINIC BURNS

            
	 	 	
              Name: Dominic
                Burns

              Title: President

            

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF SUBSCRIPTION

    (To
      Be
      Signed Only On Exercise Of Options)

     

    TO: Iview
      Holding Corp.

     

    Attention: Chief
      Financial Officer

     

    The
      undersigned, pursuant to the provisions set forth in the attached Option (No.
      _____), hereby irrevocably elects to purchase _______ shares of the Common
      Stock
      covered by such Option.

     

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      at
      the price per share provided for in such Option, which is $_________. Such
      payment takes the form of $_______ in lawful money of the United
      States.

     

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to ____________________________________________ whose address
      is ___________________________________________________________.

     

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Option shall be made
      pursuant to registration of the Common Stock under the Securities
      Act
      of 1933,
      as amended (the “Securities
      Act”)
      or
      pursuant to an exemption from registration under the Securities
      Act.

     

    
      	
              Dated:

            	 	 	 
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Option)

            
	 	 
	
              Address:

            	 
	 	 
	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

     

    FORM
      OF TRANSFEROR ENDORSEMENT

     

    (To
      Be
      Signed Only On Transfer Of Option)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees”
the
      right represented by the within Option to purchase the percentage and number
      of
      shares of Common Stock of Iview Holding Corp. into which the within Option
      relates specified under the headings “Percentage
      Transferred”
and
      “Number
      Transferred”,
      respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of Iview Holding
      Corp. with full power of substitution in the premises.

     

    
      	
              Transferees

            	 	
              Address

            	 	
              Percentage

              Transferred

            	 	
              Number

              Transferred

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

    

    
      	
              Dated:

            	 	 	 
	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Option)

            
	 	 
	
              Address:

            	 
	 	 

    

    

    
      	 	 	
              SIGNED
                IN THE PRESENCE OF:

            
	 
	
              (Name)

            
	
              ACCEPTED
                AND AGREED:

              [TRANSFEREE]

            	 
	 
	
              (Name)

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