Document:

exv10w74

EXHIBIT 10.74

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION (THE “COMMISSION”) PURSUANT TO
RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.

CONSENT AND AMENDMENT NO. 2 TO MASTER SECURITY

AGREEMENT

          THIS CONSENT AND AMENDMENT NO. 2 TO MASTER SECURITY AGREEMENT (this “Agreement”) is dated as
of May 18, 2009 (the “Agreement Date”), by and among CYTOKINETICS, INCORPORATED, a Delaware
corporation (“Debtor”), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (together
with its successors and assigns, if any, “Secured Party”).

W I T N E S S E T H:

          WHEREAS, Debtor and Secured Party are parties to that certain Master Security Agreement, dated
as of February 2, 2001 (as the same may be amended, supplemented and modified from time to time,
the “Master Security Agreement”; capitalized terms used herein have the meanings given to them in
the Master Security Agreement except as otherwise expressly defined herein), pursuant to which
Secured Party has agreed to provide to Debtor certain loans and other extensions of credit in
accordance with the terms and conditions thereof;

          WHEREAS, Debtor and Secured Party desire to amend certain provisions of the Master Security
Agreement, in accordance with and subject to the terms and conditions set forth herein; and

          WHEREAS, the Debtor has requested that Secured Party consent to the sale of those assets
described on Exhibit A attached hereto (“the Subject Assets”), in accordance with and
subject to the terms and conditions set forth herein;

          NOW, THEREFORE, in consideration of the premises, the covenants and agreements contained
herein, and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Debtor and Secured Party hereby agree as follows:

     1. Acknowledgment of Obligations. Debtor hereby acknowledges, confirms and agrees
that all Indebtedness incurred prior to the Agreement Date, together with interest accrued and
accruing thereon, and fees, costs, expenses and other charges owing by Debtor to Secured Party
under the Master Security Agreement or any document related thereto, are unconditionally owing by
Debtor to Secured Party, without offset, defense or counterclaim of any kind, nature or description
whatsoever except as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws relating to or affecting creditor’s rights generally.

     2. Consent. Subject to the terms and conditions hereof, Secured Party hereby consents
that, notwithstanding the provisions of Section 3(c) of the Master Security Agreement, the
Debtor may sell the Subject Assets and the Secured Party agrees that such sale of the Subject
Assets shall not constitute a default or event of default under the Master Security Agreement or
any document related thereto; provided, however, that (1) the execution and delivery of
this Agreement does not and will not constitute a consent to (or a waiver of any default resulting
from) any other transaction that is not expressly permitted under the terms and conditions of the
Master Security Agreement and (2) Debtor shall provide to Secured Party true, correct and

 

complete copies of the sale documents with respect to the sale of the Subject Assets prior to
or contemporaneously with the sale thereof, which documents shall specify the sold Subject Assets
and purchase price therefore.

          Upon this Agreement becoming effective in accordance with the terms and conditions of this
Agreement, (1) the Secured Party hereby agrees that its security interest and lien in such sold
Subject Assets shall automatically be released without representation, recourse or warranty and (2)
the Secured Party agrees to execute any documents evidencing such release without representation,
recourse or warranty as Debtor shall reasonably request and at Debtor’s expense.

          Upon this Agreement becoming effective in accordance with the terms and conditions of this
Agreement, the $23,304.07 principal repayment received by Secured Party in under Section 6(b) below
shall be applied to the outstanding principal amount of the Indebtedness under that certain
Promissory Note, dated as of September 13, 2005 (the “Schedule 16 Note”), issued in connection with
Collateral Schedule 16. Upon the partial repayment of the outstanding principal amount of the
Schedule 16 Note described in the immediately preceding sentence, the future payments of principal
and interest owing with respect to the Schedule 16 Note shall be recalculated for the remainder of
the term thereof.

     3. Amendments to Master Security Agreement. Subject to the terms and conditions of
this Agreement (including, without limitation, the conditions to effectiveness set forth in
Section 6 below), and effective as of the Effective Date (as such term is defined in
Section 6 below), the Master Security Agreement is hereby amended as follows:

          (a) Section 3(a) of the Master Security Agreement is hereby amended by deleting the
second sentence thereof in its entirety and substituting in lieu thereof the following new
sentences:

The Debtor shall, during normal business hours, and (1) in the absence of a default
under Section 7 hereof, upon five business days (“business day” shall mean
and include any day other than Saturdays, Sundays, or other days on which commercial
banks in New York, New York are required or authorized to be closed and that is not
a pre-scheduled company holiday of the Debtor) prior notice and (2) in the absence
of a default under Section 7 hereof, no more frequently than once in any
period of 6 consecutive calendar months: (i) provide Secured Party and any of its
officers, employees and agents access to the properties, facilities, advisors and
employees (including officers) of Debtor reasonably necessary to inspect and
evaluate the Collateral, (ii) permit Secured Party, and any of its officers,
employees and agents, to inspect, audit and make extracts from the Debtor’s books
and records relating to the Collateral (or at the request of Secured Party, deliver
true and correct copies of such books and records to Secured Party), and (iii)
permit Secured Party, and its officers, employees and agents, to inspect, review,
evaluate and make test verifications and counts of Collateral. Upon Secured Party’s
request, the Debtor will promptly notify Secured Party in writing of the location of
any Collateral. If a default under Section 7 hereof has occurred

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and is continuing or if access is necessary to preserve or protect the Collateral as
determined by Secured Party, then (1) Debtor shall provide such access to Secured
Party at all times and without advance notice, (2) the Debtor shall make available
to Secured Party and its auditors or counsel, as quickly as is possible under the
circumstances, originals or copies of all books and records that Secured Party may
reasonably request, and (3) the Debtor shall pay for all reasonable costs and
expenses of Secured Party incurred in connection with actions taken by Secured Party
under clauses (i), (ii) or (iii) of the immediately preceding sentence.

          (b) Section 3(e) of the Master Security Agreement is hereby deleted in its entirety and the
following new Section 3(e) is substituted in lieu thereof:

(e) Debtor shall, at all times, keep accurate and complete records of the
Collateral.

          (c) The Master Security Agreement is hereby amended by inserting the following new Section
7(i):

Debtor agrees to pay or reimburse upon demand for all reasonable fees, costs and
expenses incurred by Secured Party on or after May 18, 2009 in connection with (i)
filing any UCC financing statements or amendments thereto in connection with the
transactions hereunder, (ii) ordering (no more frequently than once every calendar
year in the absence of a default under Section 7 hereof) lien and security
interest record searches relating to UCC security interests, judgment liens and tax
liens, (iii) ordering (no more frequently than once every calendar year in the
absence of a default under Section 7 hereof) certified copies of the charter
documents of the Debtor from the jurisdiction of its organization, and (iv) ordering
(no more frequently than twice every calendar year in the absence of a default under
Section 7 hereof) good standing certificates with respect to the Debtor from
the jurisdiction of its organization.

          (d) The Master Security Agreement is hereby amended by inserting the following new Section
8(h):

Secured Party agrees to use all reasonable efforts to maintain, in accordance with
its customary practices, the confidentiality of information obtained by it pursuant
to any Debt Document and designated in writing by Debtor as confidential, except
that such information may be disclosed (i) with Debtor’s consent, (ii) to Secured
Party’s affiliates and its and their respective directors, officers, employees,
agents, trustees, and representatives (all of the foregoing, together with such
person’s or entity’s attorneys, consultants, accountants and advisors, collectively,
its “Representatives”) that are advised of the confidential nature of such
information and are instructed to keep such information confidential, (iii) to the
extent such information presently is or hereafter becomes (A) publicly available
other than as a result of a breach of this paragraph or (B) available to Secured
Party or its Representatives from a source (other than Debtor) not known by them to
be

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subject to disclosure restrictions, (iv) to the extent disclosure is required by any
law, rule, regulation or governmental request, court decree, subpoena or other
legal, administrative, governmental or regulatory request, order or proceeding or
otherwise requested or demanded by any governmental authority (collectively, an
“Order”), provided that to the extent practicable and not otherwise
prohibited by such Order, Secured Party will use reasonable efforts to provide
Debtor advance written notice thereof in order to permit Debtor to seek a protective
order, (v) to the extent necessary or customary for inclusion in league table
measurements or in any tombstone or other advertising materials (and the Debtor
consents to the publication of such tombstone or other advertising materials by the
Secured Party or any of its Representatives), (vi) (A) to the National Association
of Insurance Commissioners or any similar organization, any examiner or any
nationally recognized rating agency or (B) otherwise to the extent consisting of
general portfolio information that does not identify borrowers, (vii) to current or
prospective assignees or participants to the extent such assignees or participants
agree to be bound by provisions substantially similar to the provisions of this
paragraph (and such assignees and participants may disclose information to their
respective Representatives in accordance with clause (ii) above), (viii) to any
other party hereto and (ix) in connection with the exercise or enforcement of any
right or remedy under any Debt Document or in connection with any litigation
relating to the Master Security Agreement, the Indebtedness or any other Debt
Document to which Secured Party or any of its Representatives is a party or bound.
In the event of any conflict between the terms of this paragraph and those of any
other contractual obligation entered into with Debtor (whether or not a Debt
Document), the terms of this paragraph shall govern.

     4. No Other Consents or Amendments. Except for the consent and amendments set forth
and referred to in Section 2 and Section 3 above, the Master Security Agreement
shall remain unchanged and in full force and effect. Nothing in this Agreement is intended, or
shall be construed, to constitute a novation or an accord and satisfaction of any of Debtor’s
Indebtedness or to modify, affect or impair the perfection or continuity of Secured Party’s
security interests in, security titles to or other liens on any Collateral for the Indebtedness.

     5. Representations and Warranties. To induce Secured Party to enter into this
Agreement, Debtor does hereby warrant and represent to Secured Party that after giving effect to
this Agreement (i) each representation or warranty of the Debtor set forth in the Master Security
Agreement is hereby restated and reaffirmed as true and correct in all material respects on and as
of the Agreement Date as if such representation or warranty were made on and as of the date hereof;
(except to the extent that any such representation or warranty expressly relates to a prior
specific date or period), (ii) no default or event of default under the Master Security Agreement
or any other Debt Document has occurred and is continuing as of the date hereof and (iii) Debtor
has the power and is duly authorized to enter into, deliver and perform this Agreement and this
Agreement is the legal, valid and binding obligation of the Debtor enforceable against the Debtor
in accordance with its terms.

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     6. Conditions Precedent to Effectiveness of this Agreement. This Agreement shall
become effective as of the Agreement Date, and the consent and amendments set forth in Section
2 and Section 3 hereof shall be deemed to be effective as of the Agreement Date (the
“Effective Date”), upon the satisfaction in full of each of the following conditions precedent:

          (a) Secured Party shall have received one or more counterparts of this Agreement duly executed
and delivered by the Debtor and Secured Party;

          (b) Secured Party shall have received payment from Debtor on or before the Agreement Date in
the amount of $28,713.56, which amount shall be applied in accordance with Exhibit B
attached hereto, and which amount is to be delivered to Secured Party in accordance with the
following wire transfer instructions: Deutsche Bank, New York, New York, ABA 021 001 033, Account #
[***], Account Name: HH Cash Flow Collections, Reference: Cytokinetics [***].

     7. Advice of Counsel. Each of the parties represents to each other party hereto that
it has discussed this Agreement with its counsel.

     8. Severability of Provisions. In case any provision of or obligation under this
Agreement shall be invalid, illegal or unenforceable in any applicable jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

     9. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed to be an original and all of which when taken together shall constitute one
and the same instrument. Delivery of an executed signature page of this Agreement by facsimile
transmission or electronic transmission shall be as effective as delivery of a manually executed
counterpart hereof.

     10. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF CONNECTICUT APPLICABLE TO CONTRACTS MADE AND PERFORMED IN
SUCH STATE WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS.

     11. Entire Agreement. The Master Security Agreement as and when amended through this
Agreement embodies the entire agreement between the parties hereto relating to the subject matter
thereof and supersedes all prior agreements, representations and understandings, if any, relating
to the subject matter thereof.

     12. No Strict Construction, Etc. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement. Time is of the essence for this
Agreement.

 

			
	***	 	Certain information on the page has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions

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     IN WITNESS WHEREOF, the parties hereto have caused this Consent and Amendment No. 2 to Master
Security Agreement to be duly executed and delivered as of the day and year specified at the
beginning hereof.

	 	 	 	 	 
	 	DEBTOR:

CYTOKINETICS, INCORPORATED
 	 
	 	 	 	 	 
	 	By:  	/s/ Sharon A. Barbari
 	 
	 	Name: 	Sharon Barbari 	 
	 	Title: 	Sr. Vice President, Finance & CFO 	 
	 
	 	SECURED PARTY:

GENERAL ELECTRIC CAPITAL CORPORATION
 	 
	 	 	 	 	 
	 	By:  	/s/ Scott R. Towers
 	 
	 	Name: 	Scott R. Towers 	 
	 	Title:  	Duly Authorized Signatory 	 
	 

CONSENT AND AMENDMENT NO. 2 TO MASTER SECURITY AGREEMENT

Signature Page

 

 

EXHIBIT A

SUBJECT ASSETS

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Customer’s Internal
	Description	 	QTY	 	Serial Number	 	Tag #
	Multichannel NX-Biomek
with attachments
	 	1	 	9894020167	 	831
	Tube Sorting Instrument
	 	1	 	XL20-2DS-BL-MA-1.40-0-12000	 	823

 

 

EXHIBIT B

Application of Payment to Secured Party

	 	 	 	 	 
	Prepayment of principal amount of the Indebtedness under that
certain Promissory Note, dated as of September 13, 2005, issued
in connection with Collateral Schedule 16, to be applied as
specified in the third paragraph of Section 2 of this
Agreement:

	 	$	23,304.07	 
	 
	 	 	 	 
	Unpaid interest (through 5/18/09):

	 	$	59.66	 
	 
	 	 	 	 
	Early prepayment premium (to be retained by Secured Party as a
fully-earned and nonrefundable fee):

	 	$	1,864.33	 
	 
	 	 	 	 
	Legal fees of Kilpatrick Stockton LLP

	 	$	3,250.00	 
	 
	 	 	 	 
	UCC and other corporate search and records expenses

	 	$	235.50	 
	 
	 	 	 	 
	Total Amount

	 	$	28,713.56EX-10.1

IMAX CORPORATION

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

          This Employment Agreement dated and effective as of June 5, 2009 (the “Agreement”), is made
between

IMAX CORPORATION

a corporation incorporated

under the laws of Canada

(hereinafter referred to as the “Company” )

OF THE FIRST PART

And

GARY MOSS

of the City of Etobicoke in the

Province of Ontario

(hereinafter referred to as the “Executive”)

OF THE SECOND PART

          WHEREAS, the Company wishes to enter into this Agreement to engage the Executive to provide
services to the Company, and the Executive wishes to be so engaged, pursuant to the terms and
conditions hereinafter set forth;

          AND WHEREAS the Executive is engaged to provide services to the Company as its Chief
Operating Officer;

          NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth, the
parties hereto agree as follows:

1.     EMPLOYMENT AND DUTIES

1.1     Employment. The Company hereby agrees to employ the Executive, and the Executive
hereby agrees to serve, as Chief Operating Officer of the Company, upon the terms and conditions
herein contained. The Executive’s primary responsibilities shall be to organize and manage the
operations generally of the Company and to perform such other duties commensurate with his position
with the Company as are reasonably designated by the Chief Executive Officer of the Company.
The Executive agrees to serve the Company faithfully and

 

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to the
best of his ability under the direction of the Chief Executive Officer of the Company. The
Executive shall report to the Chief Executive Officer of the Company on all of his activities.

1.2     Exclusive Services. Except as may otherwise be approved in advance by the Chief
Executive Officer of the Company, the Executive shall devote his full working time throughout his
employment herein) to the services required of him hereunder. The Executive shall render his
services exclusively to the Company and its subsidiaries and affiliates, and shall use his best
efforts, judgment and energy to improve and advance the business and interests of the Company in a
manner consistent with the duties of his position.

1.3     Term of Employment. The Executive’s employment under this Agreement shall commence on
July 20, 2009 (the “Commencement Date”) and shall terminate on the termination of the Executive’s
employment pursuant to this Agreement. The period commencing as of the Commencement Date and
ending on the termination of the Executive’s employment under this Agreement is hereinafter
referred to as the “Employment Term”.

1.4     Place of Employment. During the Employment Term the Executive will be based at the
Company’s offices in Mississauga with regular travel to the offices of the Company in New York, Los
Angeles, and other parts of the world, as required.

1.5     Reimbursement of Expenses. The Company shall reimburse the Executive for reasonable
travel and other business expenses incurred by him in the fulfilment of his duties hereunder in
accordance with Company practices consistently applied.

2.     COMPENSATION

2.1     Base Salary. During his employment under this Agreement, the Executive shall be paid a
base salary (“Base Salary”) of no less than Cdn $400,000 subject to annual review as part of the
Company’s performance review process. The Executive shall be paid no less frequently than monthly
in accordance with the Company’s payroll practices.

2.2     Bonus. In addition to the Base Salary, the Executive shall be entitled to participate
in the management bonus plan of the Company which applies to senior executives of the Company. The
Executive shall participate in that plan on the basis that the target annual bonus pool eligibility
of the Executive shall be 50% of his Base Salary (the “Target Bonus”) in any year, which will
entitle the Executive to earn a bonus, according to the terms of the bonus plan, of up to 75% of
his Base Salary. Notwithstanding the foregoing, the bonus to be paid to the Executive in respect
of 2009 shall be not less than 50% of the Target Bonus, prorated for 2009, (the “Guaranteed
Bonus”), which shall be paid at the time bonuses are scheduled to be paid to other senior managers
participating in the plan, normally in March of the following year. The Executive acknowledges
that the said bonus plan may be changed from time to time by the Company without notice to or any
requirement to obtain the consent of the Executive and
without the Executive having any claim against the Company with respect to any changes thereto,
including any claims of constructive dismissal. Following any changes to the said plan,

 

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the
Executive will be given notice of the changes in the same manner as are other executives of the
Company of the Executive’s stature.

2.3     Stock Options. Effective as soon as is practicable after the Commencement Date, the
Executive shall be granted non-qualified options (the “Options”) to purchase 75,000 shares of
common stock of the Company (the “Common Shares”), at an exercise price per Common Share equal to
the Fair Market Value, as defined in the Company’s Stock Option Plan (the “Option Plan”). The
Options shall vest and become exercisable according to the following schedule:

	 	 	 	 	 
	On the first anniversary of the grant date
	 	 	10	%
	On the second anniversary of the grant date
	 	 	15	%
	On the third anniversary of the grant date
	 	 	20	%
	On the fourth anniversary of the grant date
	 	 	25	%
	On the fifth anniversary of the grant date
	 	 	30	%

The Options granted hereunder shall be subject to the terms and conditions of the Option Plan and
the stock option agreement to be entered into between the Company and the Executive as of the
applicable date of grant pursuant to, and in accordance with, the terms of the Option Plan.

3.     EXECUTIVE BENEFITS

3.1     General. The Executive shall, during his employment, receive Executive benefits
including vacation time, medical benefits, disability and life insurance, all at least consistent
with those established by the Company for its other key executives at a level commensurate with
that of the Executive. Without limitation, however, the Executive shall be entitled to the
following benefits:

	 	(i)	 	four (4) weeks’ paid vacation in each year of employment, increasing in
accordance with the Company’s vacation policy;
	 
	 	(ii)	 	such audio/visual, computer, fax, cellular telephone and other like equipment
as may be necessary in connection with the performance of the Executive’s
responsibilities shall be made available to the Executive; and
	 
	 	(iii)	 	a monthly automobile allowance of Cdn$ 850.00, together with all associated
operating expenses.

4.     TERMINATION OF EMPLOYMENT

          Definitions. As used in this Article 4, the following terms have the following
meanings:

          (a)     “Termination Payment” means each of the following amounts to the extent that such
amounts are due to be paid to and including the date upon which the Executive’s employment
is terminated (i) Base Salary and automobile allowance, (ii) unreimbursed business expenses
as outlined in Section 1.5, (iii) any amounts to be paid pursuant to the terms of any
benefit plans of the Company in which the Executive participates or pursuant to any
policies of the Company applicable to the Executive, and (iv) any outstanding vacation pay
calculated up to and including such date.

 

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          (b)     “Without Cause” means termination of the Executive’s employment by the Company
other than for Cause (as defined in Section 4.2), death or disability (as set forth in
Section 5).

4.1     Termination Without Cause

4.1.1     General. Subject to the provisions of Sections 4.1.2, 4.1.3 and 6, if, , the
Executive’s employment is terminated at any time by the Company Without Cause, the Company shall
pay the Termination Payment within thirty (30) days of the date of termination and shall continue
to pay the Executive the Base Salary and automobile allowance for the remainder of the severance
period, which, for the first year of employment shall be equal to six (6) months in duration,
increasing by one (1) month for each additional year of employment to a maximum of twenty (20)
months (such period being referred to hereinafter as the “Severance Period”), either at such
intervals as the same would have been paid had the Executive remained in the active service of the
Company or, at the option of the Company, by immediate payment to the Executive. Upon any
termination, the Executive shall also be entitled to continue to receive his employment benefits
referred to in Section 3.1, other than disability and life insurance, at the Company’s expense (to
the extent paid for by the Company as at the date of termination) and subject to the consent of the
applicable insurers.

The Executive agrees that the Company may deduct from any payment of Base Salary to be made during
the Severance Period the benefit plan contributions which are to be made by the Executive during
the Severance Period in accordance with the terms of all benefit plans for the minimum period
prescribed by law. The Executive shall have no further right to receive any other compensation or
benefits after such termination of employment except as are necessary under the terms of the
Executive benefit plans or programs of the Company or as required by applicable law. Payment of
the Termination Payment, Base Salary and automobile allowance during the Severance Period and the
continuation of the aforementioned Executive benefits during the Severance Period as outlined above
shall be deemed to include all termination and severance pay to which the Executive is entitled
pursuant to applicable statute law and common law. The date of termination of employment Without
Cause shall be the date specified in a written notice of termination to the Executive and does not
include the Severance Period.

4.1.2     Fair and Reasonable The parties confirm that notice and pay in lieu of notice
provisions contained in Subsection 4.1.1 are fair and reasonable and the parties agree that upon
any
termination of this Agreement Without Cause, the Executive shall have no action, cause of action,
claim or demand against the Company or any other person as a consequence of such termination other
than to enforce Section 4.1.1.

 

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4.1.3     Conditions Applicable to the Severance Period. If, during the Severance Period, the
Executive breaches his obligations under Article 7 of this Agreement, the Company may, upon written
notice to the Executive, terminate the Severance Period and cease to make any further payments or
provide further benefits as described in Section 4.1.1.

4.2     Termination for Cause; Resignation. The Executive’s employment may be terminated at
any time by the Company immediately upon notice for Cause. If, the Executive’s employment is
terminated by the Company for Cause, or the Executive resigns from his employment hereunder, the
Executive shall only be paid, within 15 days of the date of such termination or resignation, the
Termination Payment, then due to be paid. The Executive shall have no further right to receive any
other compensation or benefits after such termination or resignation of employment, except as
determined in accordance with the terms of the Executive benefit plans or programs of the Company.
The date of termination for Cause shall be the date specified in a written notice of termination to
the Executive, which notice shall set forth the basis for the termination. The date of resignation
shall be sixty (60) days following the date or receipt of notice of resignation from the Executive
to the Company.

4.3     Cause. Termination for “Cause” shall mean termination of the Executive’s employment
because of:

	 	(i)	 	the cessation of the Executive’s ability to work legally in the United States
or Canada other than for reasons not within the Executive’s reasonable control;
	 
	 	(ii)	 	any act or omission that constitutes a material breach by the Executive of
any of his obligations under this Agreement, which breach has not been remedied within
thirty (30) days after written notice specifying such breach has been given to the
Executive by the Company;
	 
	 	(iii)	 	the continued failure or refusal of the Executive to perform the duties
reasonably required of him as Chief Operating Officer, which failure or refusal has
not been remedied within thirty (30) days after written notice specifying such failure
or refusal has been given to the Executive
	 
	 	(iv)	 	any material violation by the Executive of any Canadian or United States
federal, provincial, state or local law or regulation applicable to the business of
the Company, which violation is injurious to the financial condition or business
reputation of the Company or the Executive’s conviction of a felony or commission of
an indictable offense for which he is not pardoned, or any perpetration by the
Executive of a common law fraud;
	 
	 	(v)	 	any other action by the Executive which is materially injurious to the
financial condition or business reputation of, or is otherwise materially injurious
to, the Company, or which results in a violation by the Company of any Canadian or
United States federal, provincial, state or local law or regulation applicable to the
business of the Company, which violation is injurious to the financial condition or
business reputation of the Company.

 

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5.     DEATH OR DISABILITY

          In the event of termination of employment by reason of death or Permanent Disability (as
hereinafter defined), the Executive (or his estate, as applicable) shall be paid the Termination
Payment then due to be paid within thirty (30) days of the date of such termination of employment.
Both the employment of the Executive and the entitlement of the Executive to be paid amounts under
Section 4.1.1, in respect of the Severance Period, shall terminate immediately and without notice
upon his death or upon his Permanent Disability (as hereinafter defined). Any benefits thereafter
shall be determined in accordance with the benefit plans maintained by the Company, and the Company
shall have no further obligation hereunder. For purposes of this Agreement, “Permanent Disability”
means a physical or mental disability or infirmity of the Executive that prevents the normal
performance of substantially all his duties under this Agreement as an Executive of the Company,
which disability or infirmity shall exist for any continuous period of 180 days. The parties agree
that such Permanent Disability cannot be accommodated short of undue hardship.

6.     MITIGATION

          Subject to Section 7.1 and 7.2, the Executive shall be required to mitigate the amount of any
payment provided for in Section 4.1.1 by seeking other employment or remunerative activity
reasonably comparable to his duties hereunder. Upon the date of the Executive’s obtaining such
other employment or remunerative activity any payment of the remaining portion of the Executive’s
Base Salary, to be made by the Company under Section 4.1.1 will be reduced by a total of one half
(1/2). The Executive shall be required as a condition of any payment under Section 4.1.1 (other
than the Termination Payment) promptly to disclose to the Company any such mitigation compensation.

7.     NON-SOLICITATION, CONFIDENTIALITY, NON-COMPETITION

7.1     Non-solicitation. For so long as the Executive is employed by the Company and
continuing for two years thereafter, notwithstanding whether the Executive’s employment is
terminated with or Without Cause or whether the Executive resigns, the Executive shall not, without
the prior written consent of the Company, directly or indirectly, for the Executive’s own benefit
or the benefit of any other person, whether as a sole proprietor, member of a partnership,
stockholder or investor (other than a stockholder or investor owning not more than
a 5% interest), officer or director of a corporation, or as a trustee, executive, associate,
consultant, principal or agent of any person, partnership, corporation or other business
organization or entity other than the Company: (x) solicit or endeavour to entice away from the
Company, any person or entity who is, or, during the then most recent 12-month period, was employed
by, or had served as an agent or consultant of the Company; or (y) solicit, endeavour to entice
away or gain the custom of, canvass or interfere in the Company’s relationship with any person or
entity who is, or was within the then most recent 12-month period, a supplier, customer or client
(or

 

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reasonably anticipated to become a supplier, customer or client of the Company) and with whom
the Executive had dealings during his employment with the Company. The Executive confirms that all
restrictions in this Section are reasonable and valid and waives all defences to the strict
enforcement thereof.

7.2     Non-Competition For so long as the Executive is employed by the Company and
continuing for a period of two years after the date of the termination of the employment of the
Executive with the Company, notwithstanding whether the Executive’s employment is terminated with
or Without Cause or whether the Executive resigns, the Executive shall not, without the prior
written consent of the Company, directly or indirectly anywhere within Canada, the United States,
Europe or Asia, as a sole proprietor, member of a partnership, stockholder or investor (other than
a stockholder or investor owning not more than a 5% interest), officer or director of a
corporation, or as a trustee, Executive, associate, consultant, principal or agent of any person,
partnership, corporation or other business organization or entity other than the Company, render
any service to or in any way be affiliated with a competitor (or any person or entity that is, at
the time the Executive would otherwise commence rendering services to or become, affiliated with
such person or entity, reasonably anticipated to become a competitor) of the Company (a
“Competitor”), which is engaged or reasonably anticipated to become engaged in designing or
supplying technology for movie theatres, designing or distributing projection or sound systems for
movie theatres, designing or supplying digital or other electronic film projection systems
(regardless of image delivery system used) or sound technology. The Executive confirms that all
restrictions in this Section are reasonable and valid and waives all defenses to the strict
enforcement thereof.

7.3     Confidentiality. The Executive covenants and agrees that he will not at any time during
employment hereunder or thereafter, except in performance of his obligations to the Company
hereunder or with the prior written consent of the senior operating officer of the Company,
directly or indirectly, disclose or use any secret or confidential information that he may learn or
has learned by reason of his association with the Company. The term “confidential information”
includes information not previously disclosed to the public or to the trade by the Company’s
management, or otherwise in the public domain, with respect to the Company’s products, facilities,
applications and methods, trade secrets and other intellectual property, systems, procedures,
manuals, confidential reports, product price lists, customer lists, technical information,
financial information, business plans, prospects or opportunities, but shall exclude any
information which (i) is or becomes available to the public or is generally known in the industry
or industries in which the Company operates other than as a result of disclosure by the Executive
in violation of his agreements under this Section 7.3 or (ii) the Executive is required to disclose
under any applicable laws, regulations or directives of any government agency, tribunal or authority having jurisdiction in the matter or under subpoena or other process of law.
The Executive confirms that all restrictions in this Section 7.3 are reasonable and valid and
waives all defences to the strict enforcement thereof.

 

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7.4     Exclusive Property. The Executive confirms that all confidential information is
and shall remain the exclusive property of the Company. All business records, papers and documents
regardless of the form of their records kept or made by Executive relating to the business of the
Company shall be and remain the property of the Company, and shall be promptly returned by the
Executive to the Company upon any termination of employment.

7.5     Injunctive Relief. Without intending to limit the remedies available to the
Company, the Executive acknowledges that a material breach of any of the covenants contained in
Article 7 will result in material and irreparable injury to the Company for which there is no
adequate remedy at law, that it will not be possible to measure damages for such injuries precisely
and that, in the event of such a breach or threat thereof, the Company shall be entitled to seek a
temporary restraining order and/or a preliminary, interim or permanent injunction restraining the
Executive from engaging in activities prohibited by Article 7 or such other relief as may be
required specifically to enforce any of the covenants in Article 7. The Executive waives any
defences to the strict enforcement by the Company of the covenants contained in Article 7. If for
any reason it is held that the restrictions under Article 7 are not reasonable or that
consideration therefor is inadequate, such restrictions shall be interpreted or modified to include
as much of the duration and scope identified in Article 7 as will render such restrictions valid
and enforceable.

7.6     Representation. The Executive represents and warrants that he is not subject to any
non-competition covenant or any other agreement with any party which would in any manner restrict
or limit his ability to render the services required of him hereunder.

8.     MISCELLANEOUS

8.1     Notices. All notices or communications hereunder shall be in writing, addressed as
follows:

	 	 	 
	To the Company:

	 	Imax Corporation
	 

	 	2525 Speakman Drive
	 

	 	Mississauga, Ontario
	 

	 	L5K 1B1
	 

	 	 
	 

	 	Facsimile:     (905) 403-6468
	 

	 	Attention:     Legal Department
	 
	 	 
	To the Executive:

	 	GARY MOSS
	 

	 	19 Princess Anne Crescent
	 

	 	Etobicoke, Ontario
	 

	 	M9A 2N9

All such notices shall be conclusively deemed to be received and shall be effective, (i) if sent by
hand delivery, upon receipt or (ii) if sent by registered or certified mail, on the fifth day after
the day on which such notice is mailed.

 

-9-

8.2     Severability. Each provision of this Agreement shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of this Agreement is held to
be prohibited by or invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Agreement. The parties agree that Sections 4, 5, 6 and 7 shall
survive the termination of this Agreement.

8.3     Assignment. This Agreement shall be binding upon and inure to the benefit of the heirs
and representatives of the Executive and the assigns and successors of the Company, if any are
permitted by law and provided that the Company and its assignee shall each remain liable to the
Executive in the event of any assignment, but neither this Agreement nor any rights hereunder shall
be assignable or otherwise subject to hypothecation by the Executive. The Executive expressly
agrees that the Company may assign any of its rights, interest or obligations hereunder to any
affiliate without the consent of the Executive; provided, however, that no such assignment shall
relieve the assignor of any of its obligations hereunder.

8.4     Entire Agreement: Amendment. This Agreement represents the entire agreement of the
parties and shall supersede any and all previous contracts, arrangements or understandings between
the Company and the Executive. This Agreement may only be amended at any time by mutual written
agreement of the parties hereto.

8.5     Withholding. The payment of any amount pursuant to this Agreement shall be subject to
any applicable withholding and payroll taxes, and such other deductions as may be required under
applicable law or the Company’s Executive benefit plans, if any.

 

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8.6     Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario and the laws of Canada applicable therein without regard to
principles of conflicts of laws.

          IN WITNESS WHEREOF, the Company and the Executive have duly executed and delivered this
Agreement as of the 5th day of June, 2009.

	 	 	 	 	 
	 	IMAX CORPORATION:

 	 
	 	By:  	/s/ Ed MacNeil                              seal
 	 
	 	 	Name:  	Ed MacNeil 	 
	 	 	Title:  	Senior Vice President, Finance 	 
	 
	 	 	 
	 	By:  	/s/ G. Mary Ruby
 	 
	 	 	Name:  	G. Mary Ruby 	 
	 	 	Title:  	Exec. VP, Corporate Services & Corporate Secretary 	 
	 

	 	 	 
	SIGNED, SEALED AND DELIVERED

	 	EXECUTIVE:
	in the presence of:
	 	 
	 
	 	 
	/s/ Paula Moss

	 	/s/ Gary Moss
	 

	 	 
	Witness

	 	Gary Moss

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