Document:

EX10-5

Exhibit 10.5

 

 

 

REGISTRATION RIGHTS AGREEMENT

dated as of May 27, 2008

between

My Screen Mobile, Inc.

and

Orascom Telecom Holding S.A.E.

 

 

 

 

 

 

            This Registration Rights Agreement (this "Agreement") is made and entered into as of May 27, 2008 among Orascom Telecom Holding S.A.E. (the "Investor") and My Screen Mobile, Inc. (the "Corporation") pursuant to the terms of the Stock Purchase Agreement between the Corporation and the Investor dated May 15, 2008 (the "Purchase Agreement").

            WHEREAS, the Corporation has agreed, upon the terms and subject to the conditions set forth in the Purchase Agreement, to sell to the Investor 12,500,000 shares, par value $0.001 per share (the "Shares") of the common stock of the Corporation and issue share purchase warrants to acquire up to 20,000,000 Shares of the Corporation , and to provide certain registration rights in respect thereof to the Investor under the 1933 Act (as defined herein), and applicable state securities laws; 

            AND WHEREAS, all references herein to the Investor shall mean the Investor or a company affiliated with or controlled by the Investor, directly or indirectly, as provided in the Purchase Agreement; 

            AND WHEREAS, the parties have agreed to enter into this Agreement in connection with, and as a condition to the closing of the transactions contemplated by, the Purchase Agreement; and

            NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Corporation agrees with the Investor to provide it with registration rights in respect of the Purchased Securities (as defined herein) under the 1933 Act , and applicable state securities laws, and the Corporation agrees with the Investor, as follows:

1.                       Definitions.  The following terms have the meanings indicated:

                       "Agreement" has the meaning set forth in the preamble. 

                       "Business Day" means any day other than a Saturday, Sunday or any other day on which commercial banks in the City of Toronto, Ontario, Canada are authorized or required by law to remain closed.

                       "Claims" has the meaning set forth in Section 6(a).

                       "Closing" means the closing of the purchase of the Purchased Securities by the Investor pursuant to the Purchase Agreement. 

                       "Closing Date" means May 27, 2008 or such other date as the Corporation and the Investor may mutually agree.

                       "Corporation" has the meaning set forth in the preamble.

                       "Effective Date" means the date a Registration Statement has been declared effective by the SEC.

                       "Event" has the meaning set forth in Section 2(d).

                       "Filing Deadline" means the date that is 60 days from the Closing Date. 

                       "Indemnified Damages" has the meaning set forth in Section 6(a).

                       "Indemnified Party" has the meaning set forth in Section 6(b).

                       "Indemnified Person" has the meaning set forth in Section 6(a).

                       "Inspectors" has the meaning set forth in Section 3(h).

                       "Investor" means has the meaning set forth in the preamble. 

                       "Legal Counsel" has the meaning set forth in Section 2(c).

                       "Person" means any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

                       "Purchase Agreement" has the meaning set forth in the preamble. 

                       "Purchased Securities" means the Shares and Warrants purchased by the Investor pursuant to the Purchase Agreement, and the Warrant Shares underlying such Warrants, as the case may be.

                       "Records" has the meaning set forth in Section 3(h).

                       "register," "registered," and "registration" refer to a registration effected by preparing and filing one or more registration statements in compliance with the 1933 Act and pursuant to Rule 415 and the declaration or ordering of effectiveness of such registration statements by the SEC.

                       "Registrable Securities" means the Shares and the Warrant Shares issuable upon exercise of the Warrants and any additional Shares underlying additional Warrants issuable hereunder.

                       "Registration Deadline" means 5:00 p.m. (Vancouver time) on October 27, 2008.

                       "Registration Period" has the meaning set forth in Section 3(a).

                       "Registration Statement" means a registration statement of the Corporation to be filed with the SEC under the 1933 Act, as may be amended and supplemented from time to time, in order to register resales of the Registrable Securities, from time to time, by the Investor.

                       "Rule 144" has the meaning set forth in Section 8.

                       "Rule 415" means Rule 415 under the 1933 Act, or any successor rule providing for offering securities on a continuous or delayed basis.

                       "SEC" means the United States Securities and Exchange Commission.

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                       "Securities Laws" means all of the applicable federal and state securities laws and regulations of the United States, including without limitation the 1933 Act, the 1934 Act and the respective rules and regulations of the SEC thereunder.

                        "Shares" has the meaning set forth in the preamble.

                       "Suspension Notice" has the meaning set forth in Section 4(b).

                       "Trading Day" means (a) any day on which the Shares are listed or quoted, and traded, on the Toronto Stock Exchange, or (b) if the Shares are not then listed or quoted, and traded, on the Toronto Stock Exchange, then any Business Day.

                       "Transaction Documents" means this Agreement, the Purchase Agreement and the instruments referenced therein.

                       "Transfer Agent" means the transfer agent (including any co-transfer agent) of the Corporation with respect to the Shares.

                       "Violations" has the meaning set forth in Section 6(a).

                       "Warrants" means the transferable share purchase warrants to be issued pursuant to the Purchase Agreement to the Investor, each Warrant being exercisable to purchase one Warrant Share at a price of US$2.00 per Warrant Share, expiring on May 23, 2012.

                       "Warrant Shares" means the Shares issuable upon exercise of the Warrants.

                       "1933 Act" means the United States Securities Act of 1933, as amended, and the rules and regulations thereunder. 

                       "1934 Act" means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

2.                       Registration.

             (a)        Registration. The Corporation shall use its reasonable best efforts to prepare and file with the SEC by the Filing Deadline a Registration Statement on Form S-1 or other applicable form under the 1933 Act covering the resale, from time to time, of all of the Registrable Securities.

             (b)        Neither the Corporation nor any affiliate thereof shall identify the Investor as an underwriter in any public disclosure or filing with the SEC unless required by the SEC, and the Investor being deemed an underwriter by the SEC shall not relieve the Corporation of any obligations it has under the Transaction Documents.  If the Corporation is advised by the SEC that a Registration Statement may not become effective without the Corporation identifying the Investor as an underwriter therein, the Corporation shall consult with Legal Counsel and the Investor to determine whether to proceed with a request to have the Registration Statement declared effective.  In any event, the Corporation shall use its reasonable best efforts to advocate for the Registration Statement to be declared effective by the SEC without identifying the Investor as an underwriter therein, and shall permit Legal Counsel to participate in any communications with the SEC in respect thereof.

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             (c)        Legal Counsel.  The Investor shall have the right to select one U.S. and one Canadian legal counsel to review and oversee any registration pursuant to this Section 2 (collectively, the "Legal Counsel"), which shall initially be Lang Michener LLP.  The Corporation shall, and the Investor shall cause their respective Legal Counsel to, reasonably cooperate with each other in performing the Corporation's obligations under this Agreement.

             (d)        Effect of Failure to Obtain and Maintain Effectiveness of Registration Statement.  The occurrence of any Event (as defined below) shall constitute a breach of this agreement.  For such purposes, each of the following shall constitute an "Event": (i) a Registration Statement is not declared effective by the SEC on or prior to the Registration Deadline; (ii) subject to an allowable suspension pursuant to Section 3(o) below, after the Effective Date of a Registration Statement, the Investor is not permitted to sell Registrable Securities under such Registration Statement (or a subsequent Registration Statement filed in replacement thereof) for any reason for three consecutive Trading Days or five Trading Days in aggregate in any 12 month period; and (iii) the Corporation fails to have available a sufficient number of authorized but unissued and otherwise unreserved Shares available to issue all shares underlying the Warrants, and if applicable, the additional Warrants issuable hereunder.

3.                       Related Obligations.  At such time as the Corporation is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), the Corporation will use its reasonable best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Corporation shall have the following obligations:

             (a)        The Corporation shall submit to the SEC, within two Business Days after the Corporation learns that no review of a particular Registration Statement will be made by the staff of the SEC, or that the staff has no further comments on a particular Registration Statement, a request for acceleration of effectiveness of such Registration Statement to a time and date not later than two Business Days after the submission of such request.  The Corporation shall use its reasonable best efforts to keep each Registration Statement effective at all times until the earlier of the third anniversary of the Closing Date and the date on which the Investor shall have sold all of the Registrable Securities covered by such Registration Statement (the "Registration Period").  The Corporation shall ensure that each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading.

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             (b)        The Corporation shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to one or more Registration Statements and the prospectus used in connection with such Registration Statements, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act as may be necessary to keep such Registration Statement effective at all times during the Registration Period, and, during such Registration Period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Corporation covered by such Registration Statement.  In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Corporation filing a report on Form 10-K, Form 10-Q, Form 8-K or any analogous report or similar filing under the 1934 Act, the Corporation shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Corporation to amend or supplement such Registration Statement.

             (c)        The Corporation shall (i) permit Legal Counsel to review and comment upon (A) mature drafts of a Registration Statement, and the final version of such Registration Statement if there have been any material changes thereto, at least five Business Days prior to its filing with the SEC, (B) all amendments and supplements to all Registration Statements (except in respect of Reports on Form 10-K, Form 10-Q and Form 8-K and any similar or successor reports) within a reasonable number of days prior to their filing with the SEC, and (C) not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel reasonably objects; provided that Legal Counsel responds with substantially all comments within five Business Days of receipt of such documents.  The Corporation shall not submit a request for acceleration of the effectiveness of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall not be unreasonably withheld.  The Corporation shall furnish to Legal Counsel, without charge, (i) copies of any correspondence from the SEC or the staff of the SEC to the Corporation or its representatives relating to any Registration Statement, (ii) promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by the Investor, and all exhibits, and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration Statement and all amendments and supplements thereto.  The Corporation shall reasonably cooperate with Legal Counsel in performing the Corporation's obligations pursuant to this Section 3(c). 

             (d)        The Corporation shall furnish to the Investor without charge, (i) upon the effectiveness of any Registration Statement, at the request of the Investor, up to ten copies of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as the Investor may reasonably request), and (ii) such other documents, including copies of any preliminary or final prospectus, as the Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by the Investor.

             (e)        The Corporation shall use its reasonable best efforts to (i) register and qualify, unless an exemption from registration and qualification applies, the resale by the Investor of the Registrable Securities covered by a Registration Statement under such other securities or "blue sky" laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions.  The Corporation shall promptly notify Legal Counsel of the receipt by the Corporation of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

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             (f)        The Corporation shall notify Legal Counsel and the Investor in writing of the happening of any event, as promptly as practicable after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, non-public information), and promptly prepare a supplement or amendment to such Registration Statement or file an appropriate document that is incorporated by reference to correct such untrue statement or omission, and deliver one copy (which may be in electronic form) of such supplement or amendment to Legal Counsel and, at the request of the Investor, up to ten copies to the Investor.  The Corporation shall also promptly notify Legal Counsel and the Investor in writing when a prospectus or any prospectus supplement or post-effective amendment has been filed (such notification shall be delivered by facsimile or electronic transmission on the same day as filing or effectiveness).  The Corporation shall also promptly notify Legal Counsel in writing of (i) any request by the SEC for amendments or supplements to a Registration Statement, or related prospectus or related information, and (ii) of the Corporation's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate.

             (g)        The Corporation shall use its reasonable best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify Legal Counsel and the Investor of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

             (h)        The Corporation shall make available for inspection, during normal business hours on two Business Days notice, by (i) Legal Counsel and (ii) any firm of accountants or other agents retained by the Investor (collectively, the "Inspectors"), all pertinent financial and other records, and pertinent corporate documents and properties of the Corporation (collectively, the "Records"), as shall be reasonably deemed necessary by each Inspector, and cause the Corporation's officers, directors and employees to supply all information which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to the Investor) or use of any Record other than public Records, unless (A) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (B) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (C) the information in such Records has been made generally available to the public other than by disclosure in violation of this or any other agreement of which the Inspector has knowledge.  The Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Corporation and allow the Corporation, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential.  Nothing herein (or in any other confidentiality agreement between the Corporation and the Investor) shall be deemed to limit the Investor's ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

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             (i)        The Corporation shall hold in confidence and not make any disclosure of information concerning the Investor provided to the Corporation unless (i) disclosure of such information is necessary to comply with Securities Laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement.  The Corporation agrees that it shall, upon learning that disclosure of such information concerning the Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow the Investor, at the Investor's expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

             (j)        The Corporation shall use its reasonable best efforts to (i) cause all of the Registrable Securities covered by a Registration Statement to be listed on each securities exchange or quotation system on which securities of the same class or series issued by the Corporation are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or quotation system, and (ii) secure designation and quotation of all of the Registrable Securities covered by a Registration Statement on the AMEX pursuant to the terms of the Purchase Agreement.  The Corporation shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(j).

             (k)        The Corporation shall cooperate with the Investor and, to the extent applicable, use its reasonable best efforts to facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities sold pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the Investor may reasonably request and registered in such names as the Investor may request.

             (l)        If reasonably requested by the Investor, the Corporation shall (i) as soon as practicable incorporate in a prospectus supplement or post-effective amendment such information as Legal Counsel or the Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering, (ii) as soon as practicable make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment, and (iii) as soon as practicable, supplement or make amendments to any Registration Statement if reasonably requested by Legal Counsel or the Investor holding any Registrable Securities.

             (m)        The Corporation shall use its reasonable best efforts to cause the Registrable Securities covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities, and shall use its reasonable best efforts to comply with all applicable rules and regulations of the SEC in connection with any registration hereunder.

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             (n)        Within two Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the Corporation shall deliver, and shall cause legal counsel for the Corporation to deliver, to the Transfer Agent for such Registrable Securities (with copies to the Investor) confirmation that such Registration Statement has been declared effective by the SEC.

             (o)        Notwithstanding anything in this Agreement to the contrary, after 20 consecutive Trading Days of continuous effectiveness of the initial Registration Statement filed and declared effective pursuant to this Agreement, the Corporation may, by written notice to Legal Counsel and the Investor, suspend sales under a Registration Statement after the Effective Date thereof and/or require that the Investor immediately cease the sale of Shares pursuant thereto and/or defer the filing of any subsequent Registration Statement if: (i) the Corporation is in possession of material non-public information relating to a material merger, acquisition or sale or similar transaction, (ii) the board of directors of the Corporation determines in good faith, by appropriate resolutions, that, as a result of such activity, (A) it would be materially detrimental to the Corporation (other than as relating solely to the price of the Shares) to file a Registration Statement at such time and (B) it is in the best interests of the Corporation to defer proceeding with such registration at such time, and (iii) in the opinion of legal counsel for the Corporation sales under the Registration Statement are required to be suspended.  Upon receipt of such notice, the Investor shall immediately discontinue any sales of Registrable Securities pursuant to such registration until the Investor has been advised that the Corporation has filed a prospectus supplement or amended prospectus with the SEC or until the Investor is advised in writing by the Corporation that the then-current prospectus may be used and has received copies of any additional or supplemental filings that are incorporated or deemed incorporated by reference in such prospectus.  In no event, however, shall this right be exercised to suspend sales beyond the period during which (in the good faith determination of the Corporation's board of directors) the failure to require such suspension would be materially detrimental to the Corporation.  The Corporation's rights under this Section may be exercised not more than one time, nor for a period of more than 20 days, in any 12-month period.  Immediately after the end of any suspension period under this Section, the Corporation shall take all necessary actions (including filing any required supplemental prospectus) to restore the effectiveness of the applicable Registration Statement and the ability of the Investor to publicly resell Registrable Securities pursuant to such effective Registration Statement.  Notwithstanding anything to the contrary, the Corporation shall cause its Transfer Agent to deliver unlegended Shares to a transferee of the Investor in connection with any sale of Registrable Securities with respect to which the Investor has entered into a contract for sale, and delivered a copy of the prospectus included as part of the applicable Registration Statement, if required, prior to the Investor's receipt of the notice of a suspension period and for which the Investor has not yet settled.

4.                       Obligations of the Investor.

             (a)        At least five Business Days prior to the first anticipated filing date of a Registration Statement, the Corporation shall notify Legal Counsel and the Investor in writing of the information the Corporation requires from the Investor to be included in such Registration Statement.  It shall be a condition precedent to the obligation of the Corporation to complete the registration pursuant to this Agreement and any penalty or default resulting from such failure, that the Investor shall furnish to the Corporation such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect the effectiveness of the registration of such Registrable Securities.

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             (b)        The Investor agrees that, upon receipt of any notice from the Corporation of the happening of any event of the kind described in Section 3(g), the first sentence of Section 3(f) or a suspension period under Section 3(o) (a "Suspension Notice"), the Investor will (i) immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Investor's receipt of notice of the filing of any prospectus supplement or post-effective amendment contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no supplement or amendment is required, and (ii) if so requested by the Corporation, deliver to the Corporation or destroy all copies of the prospectus covering the Registrable Securities in its possession at the time of receipt of such Suspension Notice.  Notwithstanding anything to the contrary, the Corporation shall cause its Transfer Agent to deliver unlegended Shares to a transferee of the Investor in connection with any sale of Registrable Securities with respect to which the Investor has entered into a contract for sale and delivered a copy of the applicable prospectus prior to the Investor's receipt of a notice from the Corporation of the happening of any event of the kind described in Section 3(g) or the first sentence of Section 3(f) and for which the Investor has not yet settled.

             (c)        The Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act in connection with sales of Registrable Securities pursuant to the Registration Statement, as applicable.

5.                       Expenses of Registration.  All reasonable expenses incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of legal counsel for the Corporation shall be paid by the Corporation.  The Corporation shall also reimburse the Investor for the reasonable fees and disbursements of Legal Counsel in connection with registration, filing or qualification pursuant to Sections 2 and 3 of this Agreement.

6.                       Indemnification.  In the event any Registrable Securities are included in a Registration Statement under this Agreement:

             (a)To the fullest extent permitted by law, the Corporation will, and hereby does, indemnify, hold harmless and defend the Investor, the directors, officers, members, partners, employees, agents, affiliates or representatives of, and each Person, if any, who controls the Investor within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Person"), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement or expenses, joint or several, (collectively, the "Claims") incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto ("Indemnified Damages"), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment or supplement thereto or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction in which Registrable Securities are offered, or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the Effective Date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Corporation files any amendment thereof or supplement thereto with the SEC, as applicable) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in the light of the circumstances under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Corporation of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state, provincial or territorial securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement, or (iv) any violation of this Agreement by the Corporation (the matters in the foregoing clauses (i) through (iv) being, collectively, "Violations").  Subject to Section 6(c), the Corporation shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable, for any reasonable and documented legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.

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             (b)        In connection with any Registration Statement in which the Investor is participating, the Investor agrees to severally and not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Corporation, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Corporation within the meaning of the 1933 Act or the 1934 Act (each, an "Indemnified Party"), against any Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Corporation by the Investor expressly for use in connection with such Registration Statement; and, subject to Section 6(c), the Investor will reimburse any reasonable and documented legal or other reasonable and documented expenses incurred by an Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably withheld or delayed; provided, further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to the Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Investor pursuant to Section 9.  Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(b) with respect to any preliminary prospectus shall not inure to the benefit of any Indemnified Party if the untrue statement or omission of material fact contained in the preliminary prospectus was corrected on a timely basis in the prospectus, as then amended or supplemented.

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             (c)        Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the reasonable and documented fees and expenses of not more than one counsel for such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding.  The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or Claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person reasonably apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent.  No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim or litigation.  Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

             (d)        The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

             (e)        The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

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7.                       Contribution.  To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation, and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

8.                       Reports Under the 1934 Act.  With a view to making available to the Investor the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Corporation to the public without registration ("Rule 144"), the Corporation agrees to:

             (a)        make and keep public information available, as those terms are understood and defined in Rule 144;

             (b)        file with the SEC in a timely manner all reports and other documents required of the Corporation under the 1933 Act and the 1934 Act so long as the Corporation remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and

             (c)        furnish to the Investor so long as the Investor owns Registrable Securities, promptly upon request such information not available on EDGAR as may be reasonably requested by the Investor to permit the Investor to sell such securities pursuant to Rule 144 without registration.

9.                       Assignment of Registration Rights.  The rights under this Agreement shall be automatically assignable by the Investor to any transferee in a private transaction of all or any portion of the Investor's Shares, Warrants or Warrant Shares, pursuant to the terms thereof, if: (a) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Corporation within a reasonable time after such assignment; (b) the Corporation is furnished with written notice of (i) the name and address of such transferee or assignee, and (ii) the securities with respect to which such registration rights are being transferred or assigned; and (c) at or before the time the Corporation receives the written notice contemplated by clause (b) of this sentence the transferee or assignee agrees in writing with the Corporation to be bound by all of the provisions contained herein.

10.                     Amendment of Registration Rights.  Provisions of this Agreement may be amended and the observance thereof maybe waived (either generally or in a particular instance and either retroactively or prospectively), only with the prior written consent of the Corporation and the Investor.  Any amendment or waiver effected in accordance with this Section 10 shall be binding upon the Investor and the Corporation.

11.                     Miscellaneous.

             (a)        Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

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If to the Corporation:

Attn:  Chief Executive Officer

My Screen Mobile, Inc.

Water Park Place, 20 Bay Street

11th Floor, Suite 803

Toronto, Ontario, Canada M5J 2N8

Telephone No.: (866) 936-8333

And if to the Investor:

Attn:  Ragy Soliman, General Counsel and Vice President, Legal

Orascom Telecom Holding S.A.E.

2005A, Nile City Towers - South Tower

Corniche El Nile, Ramlet Beaulac 11221

Cairo, Egypt

Telephone No.: +202-461-5162

Facsimile No.:  +202-461-5054

With copies to:

Attn: John Andrew

Lang Michener LLP

Brookfield Place, 181 Bay Street, Suite 2500

Toronto, Ontario, Canada M5J 2T7

Telephone No.: (416) 360-8600

Facsimile No.:  (416) 365-1719

             (b)        Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

             (c)        All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Delaware, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction.  Each party hereby irrevocably waives any right it may have, and agrees not to request, a jury trial for the adjudication of any dispute hereunder or in connection herewith or arising out of this agreement or any transaction contemplated hereby.

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             (d)        The Transaction Documents and the instruments referenced therein constitute the entire agreement among the parties hereto with respect to the subject matter thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to therein.  The Transactions Documents and the instruments referenced therein supersede all prior agreements and understandings among the parties hereto with respect to the subject matter thereof.

             (e)        Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

             (f)        The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning or interpretation hereof.  When a reference is made in this Agreement to a Section, such reference shall be to a Section of this Agreement, unless otherwise clearly indicated.  Whenever the word "including" is used in this Agreement, it shall be deemed to be followed by the words "without limitation."  The use of any gender herein shall be deemed to be or include the other genders and the use of the singular herein shall be deemed to be or include the plural (and vice versa), wherever appropriate.

             (g)        This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement.  This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

             (h)        Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

             (i)        The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

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             (j)        This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

             (k)        Unless otherwise indicated, all dollar amounts referred to in this Agreement are in United States dollars.  

             (l)        Time is of the essence hereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGES TO FOLLOW]

 

 

 

 

 

 

 

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                       IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

	
MYSCREEN MOBILE, INC.

By: /s/ Terry Rodrigues                            

Name: Terry Rodrigues                          

Title: Director                                           

	
ORASCOM TELECOM HOLDING S.A.E.

By: /s/ Naguib Sawiris                              

Name: Naguib Sawiris                             

Title: ChairmanEX10-6

Exhibit 10.6

EMPLOYMENT AGREEMENT 

     THIS EMPLOYMENT AGREEMENT (this " Agreement ") has been executed this 1st day of January, 2008, to be effective as of  January 1st, 2008 (the " Commencement Date ") by and between My Screen Mobile Inc., a Delaware corporation (the " Company "), and Gino Porco (" Executive "). 

WITNESSETH:

 

     WHEREAS, the Company is engaged in the business of providing ads to mobile phones globally; 

     WHEREAS, My Screen Mobile, Inc. is the ultimate parent entity of My Screen Group ("My Screen"); and

     WHEREAS, the Company and Executive have agreed to enter into this Agreement to set forth the terms and conditions of Executive's employment with the Company from and after the Commencement Date.

 

     NOW, THEREFORE, in consideration of the premises and the mutual agreements contained herein, and intending to be legally bound hereby, the parties agree as follows: 

1.     Employment. 
      (a) Agreement to Employ. As of the Commencement Date, the Company hereby employs Executive, and Executive hereby agrees to continue his employment by the Company upon the terms and subject to the conditions of this Agreement. 

      (b) Employment Period. The initial term (the "Initial Term") of Executive's employment shall commence on the Commencement Date and continue until December 31st, 2009,(the "Expiration Date"). Unless this Agreement shall have been earlier terminated in accordance with the terms of Paragraph 5(a), the term of this Agreement will, commencing on the Expiration Date, be extended automatically for successive one (1) year terms unless either party elects to terminate this Agreement by providing written notice to the other party at least sixty (60) days prior to the expiration of the Initial Term or any renewal term of this Agreement. As used herein, the term "Employment Period" shall mean the Initial Term plus any renewal terms as provided above. 

 

2.     Position and Duties. During the Employment Period, Executive shall serve as the Chairman, Advisory Board of My Screen reporting directly to the Board of Directors of the Company (the "BOD"). During the Employment Period, except as set forth herein, Executive shall devote his attention to the services required of him hereunder, except for vacation time and reasonable periods of absence due to sickness, personal injury or other disability. Nothing contained herein shall preclude Executive from serving on the board (or comparable governing body) of, or working for, any charitable or community organization or managing investments in non-competing companies, so long as such activities do not interfere in any material respect with the performance of Executive's duties hereunder. The Executive represents that he is currently a resident of Canada and intends to maintain such residency during the Employment Period.
 

 3.     Compensation. 
(a) Base Salary. As of the Commencement Date, the Company shall provide to Executive 25,000 common shares of MYSL monthly. Thereafter, BOD shall review Executive's base salary and performance and will propose an annual increase to the rate of Executive's annual salary based on the Executive maintaining/exceeding his historical levels of performance with the Company.  Any increase in Executive's base salary shall be incorporated into Executive's base salary at the same time as such increases annually.  Executive's annual base salary payable hereunder, as it may be increased from time to time, is referred to herein as "Base Salary." The Company shall provide Executive his Base Salary monthly. During the period that Executive is taking Company-approved time off, other than due to an Incapacity, as defined in Paragraph 4(c) below or due to a Disability, as defined in Paragraph 5(a) (vi) below, Executive shall be entitled to continued compensation of his Base Salary subject to and in accordance with the then applicable time off policies of the Company. 

(b) Signing Bonus. N/A

(c) Annual Bonus. Company agrees to negotiate an agreed upon set of objectives with the Executive and negotiate in good faith terms for the Annual Bonus. Any bonuses payable under this Paragraph 3(b) shall be paid to Executive at the same time as bonuses are paid to other executive officers of the Company, but in no event later than ninety (90) days after the close of the Company's fiscal year for which the bonus is payable. 

(d) Retention Bonus. Executive will be entitled to receive the following bonus payments, subject to the terms and conditions of this paragraph in the event of a change of control: 

Executive will be entitled to be paid any amounts not previously paid under the terms of this agreement in the event of a "change of control" (as defined under Paragraph 5(f) below) if any of the following occur: 

(A) Executive's employment with the Company or its successor is terminated (other than for cause) in connection with a change of control or prior to the one-year anniversary of such change of control; 

(B) Executive either: (i) declines employment, or (ii) terminates Executive's employment prior to the one-year anniversary of the change of control, because in either case, Executive's offer or employment or continuation of employment is in a position that is not substantially similar to Executive's position immediately prior to the change of control or such position is located more than 30 miles from Executive's principal business office immediately prior to the change of control; or 

(C) Executive remains in employment with the Company or its successor for the one-year period immediately following the change of control. 

 

	
             Retention Bonus Amount 
	
	
Payment Date 

	
           To be negotiated with the BOD
	
  
	

	
	
	

	
	
	

(e) Option Awards.

(i) In order to receive the foregoing payments, Executive must be employed on the date the bonus or Option Awards are made (except as otherwise provided below). In addition, Executive's performance evaluation must reflect that Executive's overall performance meets the Company's minimum acceptable standards for each evaluation immediately preceding the payment of any scheduled bonus. Further, Executive will not be entitled to receive any bonus payment in the event that Executive is in breach of any agreement with the Company (including, but not limited to any noncompetition, nonsolicit or similar agreement) or have violated any of the Company's policies in any material respect at the time of any scheduled payment. 

(iii) During the remaining term of Executive's employment, Executive agrees that Executive will not, directly or indirectly, sell, transfer, assign, pledge, place in trust or otherwise dispose of (collectively, "Transfer") beneficial ownership of any Options of  common stock of My Screen however acquired ("My Screen Options"), except as otherwise expressly permitted in this Section. Any such Transfer shall be subject to the terms and conditions of any other agreements applicable to Executive's Transfer of My Screen Options as may be in effect during the term of this agreement. Nothing in this Section shall be deemed to preclude any Transfer of My Screen Options either: (i) to members of Executive's immediate family, or to a trust for the benefit of members of Executive's immediate family, provided that the family member or trust agrees to continue to be bound by the transfer restrictions set forth in this paragraph c; or (ii) to or for the benefit of any charitable organization. 

(A)     Executive may Transfer such My Screen Options as may be necessary to satisfy any tax obligation arising as a result of the award or vesting of any My Screen Options or upon the exercise of any option to acquire any My Screen Options. 

(B)     Executive may request to Transfer such My Screen Options to a company or trust controlled by the Executive provided the Board of Directors provides their pre-approval of such Transfer before any Transfer is made.

4.     Benefits, Perquisites and Expenses. 

(a) Benefits Plans. During the Employment Period, Executive shall be eligible to participate in any benefit plan sponsored or maintained by the Company for the benefit of its group of senior officers, including, without limitation, any group life, medical, disability insurance or similar plan or program of the Company, whether now existing or established hereafter, to the same extent that other similarly-situated senior officers of the Company participate in such plans and to the extent that is eligible to participate in any such plan under the generally applicable provisions thereof. Executive will also be entitled to participate in any other benefit plan in which employees of My Screen participate as such plans are in effect from time to time. 

(b) Perquisites. Executive shall be entitled to receive such perquisites as are generally provided to other similarly situated employees of the Company or in accordance with the policies and practices of the Company. Executive shall be entitled to continue to accrue sick leave and vacation leave at the rate in effect for the Executive as of the Effective Date. 

(c) Incapacity. In the event Executive becomes medically disabled and cannot substantially perform his duties at any time during the Employment Period, the BOD, in consultation with such other officers of the Company as the BOD deems appropriate, at any time after such disability has continued for thirty (30) consecutive days may determine that the Company requires such duties to be performed by another executive (an "Incapacity"). Upon Executive's Incapacity, as determined by the BOD, in consultation with such other officers of the Company as the BOD deems appropriate, in his sole discretion, Executive will first receive benefits under the Company's short-term disability program in accordance with its terms. Thereafter, Executive will be entitled to receive benefits under the Company's long-term disability program in accordance with its terms. During the period that Executive is receiving short-term or long-term disability benefits, Executive will not receive payment of his Base Salary. Executive will also be entitled to participate in any other benefit plan in which employees of My Screen participate as such plans are in effect from time to time. 

(d) Business Expenses. The Company shall pay or reimburse Executive for all reasonable expenses incurred or paid by Executive while he is actively employed during the Employment Period in the performance of Executive's duties hereunder; provided Executive shall account for and substantiate all such expenses in accordance with the Company's policies for reimbursement of the expenses of its senior officers, including the Company's Travel & Entertainment Policy. 

(e) Indemnification. The Company shall, to the maximum extent permitted by applicable law, its certificate of incorporation or its bylaws, indemnify Executive and hold Executive harmless against claims, judgments, fines, amounts paid in settlement, and reasonable expenses, including reasonable attorney's fees as incurred by Executive in connection with the defense of any claim, action or proceeding in which he is a party by reason of his position with My Screen; provided such liability does not arise as a result of Executive's willful misconduct and/or gross negligence. Executive shall notify the Company promptly upon learning of any claim, action or proceeding for which Executive intends to assert his right to indemnification under this Paragraph 4(e) , and the Company shall have the right to control the defense of any such claim, action or proceeding on behalf of Executive, including any decision regarding the terms (if any) of settlement of such claim, action or proceeding; provided that unless otherwise agreed to by Executive, any such settlement shall include statements that Executive does not admit any wrongdoing and the Company does not admit any wrongdoing on the part of Executive. The Company shall not agree to any settlement of a claim, action or proceeding for which it is indemnifying Executive until it first has informed and consulted with Executive regarding the terms of such settlement, but the Company shall not need the consent of Executive to such settlement (so long as the settlement complies with the immediately preceding sentence). The indemnification obligation of the Company in this paragraph shall survive any termination of this Agreement. 

(f) Directors' and Officers' Liability Insurance. Executive shall be covered by any directors' and officers' liability insurance coverage maintained by My Screen.

 

5.     Termination of Employment. 
(a) Early Termination of the Employment Period. This Agreement may be terminated in any of the following manners: 

(i) Executive may voluntarily terminate employment with the Company at any time at the sole discretion of Executive upon sixty (60) days' prior written notice to the Company (a "Voluntary Termination"). 

(ii) Executive may, upon written notice to the Company, terminate employment with the Company immediately at any time for "Good Reason" (as defined in Paragraph 5(e)), it being agreed that any such termination, although effected by Executive, shall not constitute a Voluntary Termination. 

(iii) Executive's employment may, upon written notice to Executive, be terminated by the Company at any time without Cause (as defined in Paragraph 5(d)) at the sole discretion of the Company ("Without Cause "). The Company shall give Executive ninety (90) days' prior written notice if Executive is being terminated Without Cause.  

(iv) Executive's employment may be terminated by the Company immediately at any time for Cause (as defined in Paragraph 5(d)). 

(v) This Agreement shall terminate automatically upon Executive's death. 

(vi) The Company may, upon written notice to Executive, terminate this Agreement upon Executive's Disability, subject to the following: 

(A) To the extent that Executive has any rights to reinstatement or reemployment during the 12-month period following the inception of Executive's Disability under any relevant law at the time of such Disability; Executive's employment may be terminated by the Company upon written notice following the expiration of such period. During such period, Executive shall be entitled to receive disability benefits as provided under the applicable benefit plans of the Company and no other compensation shall be due or payable by the Company during such period. 

(B) Unless otherwise required by any relevant law applicable to Executive as of the date of his Disability, as used herein, the term "Disability" shall mean a medical determination that Executive suffers from illness or other physical or mental impairment that prevents Executive from substantially performing his duties for a period of sixteen (16) consecutive weeks or longer during the Employment Period. The determination of Executive's Disability shall be made by the Board of Directors of the Company. Executive shall cooperate fully with any physician or health care professional (the "Doctor") chosen by the Board of Directors, in its sole discretion, to review Executive's medical condition. Executive shall cooperate with the Doctor by, among other things, executing any necessary releases to grant the Doctor full access to any and all of Executive's medical records, authorizing or requiring physicians and other healthcare professionals who have treated or dealt with Executive to consult with the Doctor and submitting to such physical examinations or testing as may be requested by the Doctor. 

(b) Benefits Payable Upon Termination. 

(i) Following the end of the Employment Period, pursuant to any manner described in Paragraph 5(a) , the Company shall pay to Executive (or, in the event of his death, his estate): (1) any Base Salary earned, but unpaid, for services rendered to the Company on or prior to the date of Executive's termination of employment, and (2) amounts which are vested or which Executive is otherwise entitled to receive under the terms of or in accordance with any plan, policy, practice or program of, or any contract or agreement with, the Company, including without limitation, payment of any accrued, but unused vacation or other paid time off as of the date of Executive's termination of employment. 

(ii) If termination occurs pursuant to any manner described in Paragraphs 5(a)(ii) (Good Reason) or (iii) (Without Cause) and Executive executes a release of all claims in the form attached hereto as Attachment B , upon or shortly after the date of Executive's termination, Executive shall be entitled to receive, in addition to the benefits set forth in Paragraph 5(b)(i) above, the Executive shall be entitled to the following payments which are intended to replicate his then annual compensation and which will be paid as consideration for such termination of employment as provided in this Paragraph 5(b)(ii) and which payments are intended by the parties to be and are stipulated to be liquidated damages payable as the result of such termination: 

(1) an additional amount equal to his Base Salary in effect on the date of such termination;

(2) to the extent permitted by law, continuation of coverage under and participation rights in the benefits plans providing medical, dental, vision and prescription drug coverage to Executive as in effect as of Executive's termination date for the 12-month period following the date of such termination (to the same extent as if Executive were still employed by the Company during that period); provided that, if the continuation of such coverage is prohibited, then the Company shall pay an additional amount equal to twelve times the Company's monthly contribution for Executive's medical, dental, vision, and prescription drug coverage determined based on the Executive's coverage as in effect on the termination date;

 

(3) the amount of any annual bonus to which Executive would otherwise be entitled for the calendar year during which such termination occurs, based on Executive's performance against Company bonus targets to date, as determined by the BOD and such other officers and directors of the Company as the BOD deems appropriate in his sole discretion, prorated to reflect the portion of such year prior to such termination; and 

(4) My Screen will accelerate the vesting of 12 months of options and they will be delivered to the Executive in the month of termination.

 

(c) Timing of Payments. 

(i) Amounts payable pursuant to Paragraphs 5(b)(i)(1) , will be paid in a single lump sum as soon as practicable, but in no event more than 10 business days, following the date of Executive's termination of employment.

 

(ii) Vested benefits referred to in Paragraph 5(b)(i)(2) shall be payable in accordance with the terms of the plan, policy, practice, program, contract or agreement under which such benefits have accrued. 

(iii) Amounts payable pursuant to Paragraphs 5(b)(ii)(1) and Paragraph 5(b)(ii)(3) , together with any cash payment due under Paragraph 5(b)(ii)(2) , if any, will be paid as soon as practicable, but in no event more than 30 days following the Executive's termination date.

 

(iv) Continuation of benefits provided pursuant to Paragraph 5(b) (ii) (2) shall be provided during the 12-month period following Executive's termination date.

 

(v) Vesting of Options pursuant to Paragraph 5(b) (ii) (4) will occur as of the Executive's termination date.
 

(d) Definition of Cause. For purposes of this Agreement, "Cause" shall mean: 

(i) fraud against the Company; 

(ii) willful malfeasance or gross misconduct in connection with Executive's employment hereunder which has materially adversely affected the Company;

 

(iii) material failure to perform Executive's duties for the Company which has materially adversely affected the Company; 

(iv) any refusal to implement or undertake the directives of the President; the Chairman and Chief Executive Officer or the Board, provided such directives do not require any violation of law or any violation of any applicable Company or professional standard of ethics;

 

(v) engaging in conduct that causes material injury, monetary or otherwise, to the Company; 

(vi) engaging in conduct that reflects adversely on the Company or affects the Executive's ability to perform his duties hereunder;

(vii) having been convicted of or enter a plea of nolo contendere to a crime that constitutes a felony during employment;

 

(viii) violation of federal, state or local laws that could adversely affect the Company; 

(ix) dependence on alcohol and/or drugs without the supervision and care of a physician or the illegal use, possession or sale of drugs;

 

(x) theft, misappropriation, embezzlement or conversion of the assets or opportunities of the Company;

 

(xi) a material breach of the terms, covenants or representations of this Agreement; or

 

(xii) a material violation of Company policies.

 

(e) Definition of Good Reason. For purposes of this Agreement, "Good Reason" means any of the following:
 

(i) the Company fails to pay or provide when due Executive's Base Salary, bonuses referred to in Paragraphs 3(b) and 3(c) above, or benefits, which failure is not cured (or which reduction is not corrected) within ten (10) days after the receipt by the Board of Directors of the Company from Executive of his written notice referring to this provision and describing such failure (or reduction); or

(ii)) action by the Company that results in a material diminution in the Executive's position, authority, duties or responsibilities; or

(iii) the Executive's authority is undermined to the extent that decisions were undertaken in his sphere of responsibility without his knowledge or consent, or his integrity has been fundamentally compromised by actions the Company has taken; or

 
(iv) the Company relocates Executive's principal office to a location more than 50 miles from his current principal office; or

 

(v) a "Change of Control" (as hereinafter defined) occurs; provided, however, that if a Change of Control shall exist as a result of the circumstances set forth in clause (A) of the definition thereof, Executive agrees that he will, for a period of time equal to the greater of  one year after the date of the occurrence of such Change of Control and  the balance of time remaining until the Expiration Date (such greater period of time being referred to herein as the "Change of Control Period"), defer his right to terminate this Agreement pursuant to Paragraph 5(a)(ii) and continue his employment hereunder on the terms and subject to the conditions contained in this Agreement; provided, further, however, that upon such subsequent termination of this Agreement by Executive after the expiration of the Change of Control Period, by Executive for Good Reason or by the Company Without Cause, the date of any such termination of this Agreement shall be deemed to be the date of the occurrence of the Change of Control for purposes of benefits to which Executive is entitled pursuant to Paragraph 5(b) . 

(f) Definition of Change of Control. For purposes of this Agreement, a "Change of Control" shall mean any transaction or event, or series of transactions or events, whether voluntary or involuntary, that results in, or as a consequence of which, any of the following events shall occur: (A) any individual, corporation, partnership, limited liability company, association, joint stock company, governmental authority, business trust or other legal entity (a "Person") shall acquire, directly or indirectly, Beneficial Ownership of more than 50% of the voting stock of My Screen, (B) any sale of all or substantially all of the assets of My Screen, or (C) persons constituting the members of the Board of Directors of My Screen immediately prior to the initiation of a proxy contest ceasing to constitute a majority of the Board of Directors of My Screen upon the conclusion of such proxy contest.

 

6.  Restrictive Covenants. 

(a) Non-Competition. During Executive's employment with the Company and for a period of 24 months following the termination of Executive's employment with the Company at any time and for any reason, Executive shall not, on Executive's own behalf or on behalf of others, directly or indirectly (whether as an employee, consultant, investor, partner, sole proprietor or otherwise), be employed by, perform any services for, or hold any ownership interest in any business engaged in the business of delivering ads to mobile devices by way of a mobile operator/carrier in any My Screen Territory. The above notwithstanding, the ownership, for investment purposes, of up to one percent (1%) of the total outstanding equity securities of a publicly traded company, shall not be considered a violation of this Paragraph 6(a). As used herein, the term "Territory" shall mean with respect to Executive's non-competition obligations during the Employment Period, the geographic areas in which the Company does business during the Employment Period; and with respect to Executive's non-competition obligations during the 24 month period following the Employment Period, the geographic areas in which the Company is doing business as of the termination date of Executive's employment with the Company.

(b)  Confidentiality. Executive further agrees that both during Executive's employment with the Company and thereafter Executive will not disclose to any third party or use in any way (except in performing Executive's duties while employed by the Company in furtherance of the best interests of the Company) any confidential information, business secrets, or business opportunity of the Company, including without limitation, drawings, designs, blueprints, plans, marketing, advertising and promotional ideas and strategies, marketing surveys and analyses, technology, budgets, business plans, customer or supplier lists, research or financial, purchasing, planning, employment or personnel data or information. Immediately upon termination of Executive's employment or at any other time upon the Company's request, Executive will return to the Company all memoranda, notes and data, and computer software and hardware, records or other documents compiled by Executive or made available to Executive during Executive's employment with the Company concerning the business of the Company, all other confidential information and all personal property of the Company or, including without limitation, all drawings, designs, blueprints, plans, files, records, documents, lists, equipment, supplies, promotional materials, keys, phone or credit cards and similar items and all copies thereof or extracts therefrom.

 

(c)  Intangible Property. Executive will not at any time during or after Executive's employment with the Company have or claim any right, title or interest in any trade name, trademark, patent, copyright, work for hire or other similar rights belonging to or used by the Company and shall not have or claim any right, title or interest in any material or matter of any sort prepared for or used in connection with the business or promotion of the Company, whatever Executive's involvement with such matters may have been, and whether procured, produced, prepared, or published in whole or in part by Executive, it being the intention of the parties that Executive shall and hereby does, recognize that the Company now has and shall hereafter have and retain the sole and exclusive rights in any and all such trade names, trademarks, patents, copyrights (all Executive's work in this regard being a work for hire for the Company under the copyright laws of Canada), material and matter as described above. If any work created by Executive is not a work for hire under the copyright laws of Canada, then Executive hereby assigns to the Company all rights, title and interests in each such work (including, but not limited to, copyright rights). Executive shall cooperate fully with the Company during Executive's employment and thereafter in the securing of trade name, trademark, patent or copyright protection or other similar rights in Canada and in foreign countries and shall give evidence and testimony and execute and deliver to the Company all papers requested by it in connection therewith. Executive hereby irrevocably appoints the Company as Executive's attorney-in-fact (with a power coupled with an interest) to execute any and all documents which may be necessary or appropriate in the securing of such rights, including but not limited to, any copyright in Executive's work.

 

(d)  No Solicitation of Employees. Executive agrees that, both during Executive's employment with the Company and for a period of one (1) year following the termination of Executive's employment with the Company at any time and for any reason, Executive will not, directly or indirectly, on Executive's own behalf or on behalf of any other person or entity, hire or solicit to hire for employment or consulting or other provision of services, any person who is actively employed (or in the preceding six months was actively employed) by the Company. This includes, but is not limited to, inducing or attempting to induce, or influencing or attempting to influence, any person employed by the Company to terminate his or her employment with the Company. 

(e) No Solicitation of Customers. Executive agrees that, both during Executive's employment and for a period of one (1) year following the termination of Executive's employment with the Company at any time and for any reason, Executive will not directly or indirectly, on Executive's own behalf or on behalf of any other person or entity, solicit the business of any entity with which the Company has an agreement, at the time of Executive's termination, to provide services to such entity (a "Customer"); provided that the restrictions of this Paragraph 6(e) shall only apply to Customers with which Executive had personal contact, or for whom Executive had some responsibility in the performance of Executive's duties for the Company, during Executive's employment with the Company. 

       

(f) Enforcement. Executive acknowledges and agrees that the restrictions contained in this Paragraph 6 are necessary to prevent the use and disclosure of confidential information and to protect other legitimate business interests of the Company. Executive acknowledges that all of the restrictions in this Paragraph 6 are reasonable in all respects, including duration, territory and scope of activity. Executive agrees that the restrictions contained in this Paragraph 6 shall be construed as separate agreements independent of any other provision of this Agreement or any other agreement between Executive and the Company. Executive agrees that the existence of any claim or cause of action by Executive against the Company shall not constitute a defense to the enforcement by the Company of the covenants and restrictions in this Paragraph 6. Executive agrees that the injury the Company will suffer in the event of the breach or threatened breach by Executive of any clause of this Paragraph 6 will cause the Company irreparable injury that cannot be adequately compensated by monetary damages alone. Therefore, Executive agrees that the Company, without limiting any other legal or equitable remedies available to it, shall be entitled to obtain equitable relief by injunction or otherwise, without the posting of any bond, from any court of competent jurisdiction, including, without limitation, injunctive relief to prevent Executive's failure to comply with the terms and conditions of this Paragraph 6 . The one-year period referenced in Paragraph 6(a) and the one-year periods referenced in Paragraphs 6(d) and (e) above shall be tolled on a day-for-day basis for each day during which Executive violates the provisions of Paragraphs 6(a), (d) and (e) in any respect, so that Executive is restricted from engaging in the activities prohibited by Paragraphs 6(a), (d) and (e) for the full duration of the intended period. 

7.  No Conflict With Prior Agreements; Due Authorization.
 

(a) Executive represents to the Company that neither Executive's execution of this Agreement or commencement of employment hereunder nor the performance of Executive's duties hereunder conflicts with any contractual commitment on Executive's part to any third party. The Company represents to Executive that it is fully authorized and empowered by all necessary corporate action to enter into this Agreement and that performance of its obligations under this Agreement will not violate any agreement between it and any other person, firm or other entity. 

(b) Nothing herein shall be construed to require Executive to use or disclose any information that he is prohibited from using or disclosing as a result of legal or contractual obligations. 

8.  Miscellaneous. 

(a) Survival. Paragraphs 4(e), 5, 6 and 8 shall survive the termination hereof.

 

(b) Binding Effect. Subject to the Executive's rights as set forth in Paragraph 5(e)(iii) , this Agreement shall be binding on the Company in accordance with its terms and any person or entity which succeeds to the interest of the Company (regardless of whether such succession occurs by operation of law) by reason of the sale of all or a portion of the Company's stock, a merger, consolidation, or reorganization involving the Company or a sale of the assets of the business of the Company (or portion thereof) in which Executive performs a majority of his services. This Agreement shall also inure to the benefit of Executive's heirs, executors, administrators and legal representative.

 

(c) Assignment. Except as provided under Paragraph 8(b), neither this Agreement nor any of the rights or obligations hereunder shall be assigned or delegated by any party hereto without the prior written consent of the other party. 

(d) Entire Agreement. This Agreement, together with the Schedules and Attachments attached hereto, constitutes the entire agreement between the parties hereto with respect to the matters referred to herein, and supersedes all prior agreements between the parties. No other agreement, oral or otherwise, shall be binding upon the parties unless it is in writing and signed by the party against whom enforcement is sought. There are no promises, representations, inducements or statements between the parties other than those that are expressly contained herein. Executive acknowledges that he is entering into this Agreement of his own free will and accord, and with no duress, that he has been represented and fully advised by competent counsel in entering into this Agreement, that he has read it and that he understands it and its legal consequences. No parole or other evidence may be admitted to alter, modify or construe this Agreement, which may be altered, modified or amended only by a writing signed by the parties hereto.

 

(e) Severability; Reformation. In the event that one or more of the provisions of this Agreement shall become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not be affected thereby. In the event that any provision of Paragraph 6 is not enforceable in accordance with its terms, Executive and the Company agree that such provision shall be reformed to make such provision enforceable in a manner which provides the Company the maximum rights permitted at law.

 

(f) Waiver. Waiver by any party hereto of any breach or default by the other party of any of the terms of this Agreement shall not operate as a waiver of any other breach or default, whether similar to or different from the breach or default waived. No waiver of any provision of this Agreement shall be implied from any course of dealing between the parties hereto or from any failure by either party hereto to assert its or his rights hereunder on any occasion or series of occasions.

 

(g) Notices. Any notice required or desired to be delivered under this Agreement shall be in writing and shall be delivered personally against receipt, by courier service or by registered mail, return receipt requested, and shall be effective upon actual receipt by the party to which such notice shall be directed, and shall be addressed as follows (or to such other address as the party entitled to notice shall hereafter designate in accordance with the terms hereof): 

If to the Company, to: 
Attn: CEO

My Screen Mobile, Inc.

Water Park Place, 20 Bay Street, 11th Floor Suite 803

Toronto, Ontario, Canada M5J 2N8

866-936-8333

With a copy to: 
Gino Porco

81 Chartwell Road

Toronto, Ontario

M8Z 4G8

(h) Headings. Headings to paragraphs in this Agreement are for the convenience of the parties only and are not intended to be part of or to affect the meaning or interpretation hereof. 

(i) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 

(j) Withholding. Any payments provided for herein shall be reduced by any amounts required to be withheld by the Company from time to time under applicable Federal, Provincial or local income or employment tax laws or similar statutes or other provisions of law then in effect. 

(k) Governing Law. This Agreement, including any disputes hereunder, and the interpretation, validity and/or enforcement of any provision thereof, shall be governed, construed and enforced in accordance with the laws of the Province of Ontario. The Parties hereby submit to the jurisdiction and venue of any local or federal court located in the City of Toronto for resolution of any and all claims, causes of action or disputes arising out of, related to or concerning this Agreement and the Parties agree to waive any claim relating to forum non convenes. 

(l) Resolution of Disputes. All disputes, controversies and claims arising in connection with this Agreement that are not settled by agreement between the parties shall be finally settled by a single arbitrator under the Arbitration Act (Ontario) A single arbitrator shall be appointed by agreement between the parties or, failing such agreement, either party may apply to the Court and ask it to appoint an arbitrator.. The Parties agree that any arbitration hearing shall be held in Toronto, Ontario, Canada. The arbitrator may grant any remedy that (s) he deems just and equitable within the scope of this agreement, including specific performance. The award of the arbitrator shall be final and binding and judgment thereon may be entered in any court having jurisdiction. The costs and expenses (including reasonable attorney's fees) of the prevailing party shall be borne and paid by the party that the arbitrator determines is the non-prevailing party. Notwithstanding the foregoing, the parties agree that prior to the commencement of any arbitration proceedings to resolve any dispute, controversy or claim arising in connection with this Agreement, the parties shall, upon the request of any party, attempt in good faith to resolve such dispute, controversy or claim through non-binding mediation .

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer, and Executive has hereunto set his hand, as of the Commencement Date. 

	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
EXECUTIVE: 
	
  
	
  

	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
/s/ Gino Porco

 Gino Porco
	
  
	
  

	
  
	
  
	
  
	
  

	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
COMPANY: 
	
  
	
  

	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
My Screen Mobile, Inc. 
	
  
	
  

	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
By: 
	
  
	
  

	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
/s/ T. Rodrigues                                

	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
Chief Executive Officer 

 

 

 

 

 

 

 

 

 
	
  
	
  

 

ATTACHMENT A 

Stock Option Plan and Grant

 

Company agrees to create an option plan and obtain Shareholder approval as soon as practical and to negotiate in good faith an allocation to Executive.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ATTACHMENT B 

FORM OF 

SEPARATION AGREEMENT AND RELEASE 

     This Separation Agreement and Release (this "Separation Agreement") is entered into by _____________ ("") and My Screen Mobile, Inc. ("My Screen"). 

     1.  Recitals 

     WHEREAS, _______________ (employee's name) and My Screen entered into an employment agreement effective as of May 1, 2008 (the "Employment Agreement"); 

     WHEREAS, _______________ (employee's name)'s employment with My Screen is terminated effective _____________ ("Separation Date"); 

     WHEREAS, the parties hereto have agreed to the terms of such separation from employment in accordance with the provisions of this Separation Agreement; and 

     NOW THEREFORE, in exchange for mutual consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, the parties hereby agree as follows: 

     2.  Termination Payment. In exchange for the promises made by _______________ (employee's name)  in this Separation Agreement and his performance of those promises, My Screen will pay _______________ (employee's name)  the termination payments and benefits provided under Paragraph 5 of the Employment Agreement (the "Termination Payments"). The Termination Payments are intended by the parties to be and are stipulated to be liquidated damages payable upon termination of employment as provided under the terms of the Employment Agreement. 

     3.  Consideration. _______________ (employee's name) hereby executes this Separation Agreement in exchange for the Termination Payments set forth in Paragraph 1. _______________ (employee's name) acknowledges that the Termination Payments exceeds any compensation he would otherwise be paid on termination of employment and that the Termination Payments constitutes complete and adequate consideration for his agreement to enter into this Separation Agreement. _______________ (employee's name)  further acknowledges and agrees that the Termination Payments constitutes the total amount that will be paid to him and that he shall receive no further compensation or benefits from My Screen (including without limitation any further salary, bonuses, Termination Payments, or Option grants), except for the reimbursement of any business expenses incurred by him prior to the Separation Date in accordance with My Screen's policies for the reimbursement of business expenses and the right to continue group health plan coverage where it is available.     4.  Release. In exchange for the commitments of My Screen provided for herein, _______________ (employee's name), on his own behalf, and on behalf of all his agents, successors, heirs, legal representatives, all persons, corporations and other entities that might claim by, through or under him or any of them, hereby voluntarily releases and discharges My Screen and their respective predecessors, successors and assigns, and the current, former and future directors, officers, partners, members, stockholders, employees, attorneys and agents of each of them, and the like, and all persons or entities acting by, through, under or in concert with any of them, and any benefit plan maintained by My Screen (or any plan administrator of any such plan) (collectively, the "Releasees"), of and from any and all debts, obligations, claims, demands, judgments or causes of action of any kind whatsoever, known or unknown, in tort, contract, by statute or on any other basis, for equitable relief, compensatory, punitive or other damages, expenses (including attorneys' fees), reimbursements, costs or other relief of any kind, arising on or before the date _______________ (employee's name)  signs this Separation Agreement including but not limited to, any and all claims, demands, rights and/or causes of action (the "Released Claims"). _______________ (employee's name)  acknowledges that the Released Claims shall include, without limitation, those which might arise out of allegations relating to a claimed breach of an alleged oral or written employment contract, or which might arise out of any other alleged restriction on My Screen's right to terminate _______________ (employee's name) ' employment or duty to provide advance notice of termination, or relating to purported employment discrimination, retaliation or civil rights violations, or any other applicable federal, provincial or local statute or ordinance, which _______________ (employee's name)  might have or claim to have on or before the date _______________ (employee's name)  signs this Separation Agreement, against any of the Releasees by reason of _______________ (employee's name) ' employment by My Screen, or the termination of said employment and all circumstances related thereto. 

     5.      5.  Litigation Cooperation. _______________ (employee's name) agrees to provide My Screen with truthful and complete cooperation in litigation matters arising out of or related 

to _______________ (employee's name)' activities or duties while employed by My Screen, whether or not such matters have commenced as of the termination of _______________ (employee's name)' employment. My Screen shall reimburse _______________ (employee's name) for all reasonable out-of-pocket expenses associated with such _______________ (employee's name) cooperation in litigation. 

     6.  Acknowledgement Of Restrictive Covenants. _______________ (employee's name) acknowledges that he remains bound by the Restricted Covenants (as defined below) contained in the Employment Agreement, including but not limited to, covenants regarding non-competition, non-solicitation, and confidential information. 

 

     7.  Return Of Property; Intellectual Property Rights. _______________ (employee's name)  agrees that, on or before the Separation Date, _______________ (employee's name)  shall return to My Screen all property owned by each such company and all property containing information relating to any such company or in which any such company has an interest, including, for example, files, documents, data and records (whether on paper or in tapes, disks or other machine-readable form or otherwise and whether or not prepared by _______________ (employee's name)  in whole or in part), office equipment, telephone calling cards, credit cards and _______________ (employee's name)  identification cards made available to or prepared or compiled by _______________ (employee's name)  (in whole or in part) during _______________ (employee's name) ' employment with My Screen. _______________ (employee's name)  acknowledges that My Screen is the rightful owner of any programs, ideas, inventions, discoveries, copyright material or trademarks which _______________ (employee's name)  may have originated or developed, or assisted in originating or developing, during _______________ (employee's name) ' period of employment with My Screen or, where any such origination or development involved the use of company time or resources, or the exercise of _______________ (employee's name) ' responsibilities for or on behalf of My Screen. 

     8.  Remedies. _______________ (employee's name)  acknowledges that irreparable injury will result to My Screen, and to their respective businesses, in the event of any breach or threatened breach by _______________ (employee's name)  of any of _______________ (employee's name) ' representations, covenants or commitments under this Separation Agreement. In the event of a breach or threatened breach by _______________ (employee's name) of any of the representations, covenants or commitments under this Separation Agreement, My Screen shall be entitled, in addition to any other remedies and damages available, to injunctive relief to restrain the violation of such covenants by _______________ (employee's name) or by any person acting for or with _______________ (employee's name) in any capacity whatsoever. In the event of a breach or threatened breach of any of _______________ (employee's name)' representations, covenants or commitments under this Separation Agreement, in addition to My Screen's rights to pursue injunctive relief as described above and to pursue other remedies and to seek damages, _______________ (employee's name) shall forfeit the Termination Payments, and shall have an obligation to immediately repay any Termination Payments previously received. As a further material inducement to the My Screen Companies to enter into this Separation Agreement, _______________ (employee's name)  agrees, to the extent permitted by law, to indemnify and hold each and all of the Releasees harmless from and against any and all loss, costs, damages or expenses, (including without limitation, attorneys' fees and litigation expenses) in the event it becomes necessary for any of the Releasees to defend any claim or claims brought by _______________ (employee's name)  which have been released by this Separation Agreement. 

     All disputes, controversies and claims arising in connection with this Separation Agreement that are not settled by agreement between the parties shall be finally settled under the Arbitrations Act (Ontario).  A single arbitrator shall be appointed by agreement between the parties or, failing such agreement, by the Court. The Parties agree that any arbitration hearing shall be held in Toronto, Ontario. The arbitrator may grant any remedy that (s) he deems just and equitable within the scope of this agreement, including specific performance. The award of the arbitrator shall be final and binding and judgment thereon may be entered in any court having jurisdiction. The costs and expenses (including reasonable attorney's fees) of the prevailing party shall be borne and paid by the party that the arbitrator determines is the non-prevailing party. Notwithstanding the foregoing, the parties agree that prior to the commencement of any arbitration proceedings to resolve any dispute, controversy or claim arising in connection with this Separation Agreement, the parties shall, upon the request of any party, attempt in good faith to resolve such dispute, controversy or claim through non-binding mediation. 

     9.  Applicable Law. This Separation Agreement shall be interpreted and enforced in accordance with the laws of the Province of Ontario without regard to principles of conflicts of laws and without regard to any rule of construction or interpretation as to which party drafted this Separation Agreement. 

     10.  Consent To Jurisdiction. Each of the parties hereby consents to the exclusive jurisdiction of the Province of Ontario with respect to any suit, action or proceeding relating to this Separation Agreement or any of the transactions contemplated hereby. 

     11.  Severability. If any clause, phrase or provision of this Separation Agreement, or the application thereof to any person or circumstance, shall be invalid or unenforceable under any applicable law, this shall not affect or render invalid or unenforceable the remainder of this Separation Agreement. 

     12.  Successors And Assigns. This Separation Agreement shall be binding on _______________ (employee's name) and _______________ (employee's name)' heirs, administrators, representatives, executors, successors, and assigns, and shall inure to the benefit of My Screen and their representatives, predecessors, successors and assigns. 

     13.  Entire Separation Agreement. This Separation Agreement sets forth the entire understanding of My Screen and _______________ (employee's name)  and supersedes all prior agreements, arrangements, and communications, whether oral or written, pertaining to the subject matter hereof except for: (i) any Restrictive Stock Award entered into by _______________ (employee's name) ; or (ii) any Non-Compete, Non-Solicitation and Confidentiality Separation Agreement or other agreement containing any similar sort of restrictive employment covenant (the "Restrictive Covenants"), entered into by _______________ (employee's name)  in connection with a restricted stock award by a My Screen Company or otherwise, to the extent that the Restrictive Covenant(s) provide any greater protection for My Screen than are provided for in this Separation and Release Separation Agreement. This Separation Agreement may not be modified or amended except by a written Agreement signed by the parties hereto. A waiver of any provision of this Separation Agreement must be in writing and signed by the party making the waiver. Any waiver by My Screen of a breach of any provision of this Separation Agreement shall not operate as, or be construed to be, a waiver of any other breach of such provision of the Separation Agreement. The failure of My Screen to insist on strict adherence to any term of this Separation Agreement on one or more occasions shall not be considered a waiver or deprive My Screen of the right thereafter to insist on strict adherence to that term or any other term of this Separation Agreement. 

STATEMENT BY _______________ (EMPLOYEE'S NAME) WHO IS SIGNING BELOW: 

I HAVE BEEN GIVEN A REASONABLE PERIOD TO CONSIDER THIS SEPARATION AGREEMENT BEFORE SIGNING. I HAVE CAREFULLY READ AND FULLY UNDERSTAND THE PROVISIONS OF THIS SEPARATION AGREEMENT AND HAVE HAD SUFFICIENT TIME AND OPPORTUNITY TO CONSULT WITH MY PERSONAL TAX, FINANCIAL AND LEGAL ADVISORS PRIOR TO SIGNING THIS DOCUMENT, AND I INTEND TO BE LEGALLY BOUND BY ITS TERMS. I AM ENTERING INTO THIS SEPARATION AGREEMENT ON A KNOWING AND VOLUNTARY BASIS. 

      THE UNDERSIGNED, intending to be legally bound, have executed this Separation Agreement as of the dates indicated below. 

	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
EXECUTIVE: 
	
  
	
  
	
  
	
  

	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
__________________________________ 
	
  
	
Date of Signature 
	
  
	
 ____________________

	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
COMPANY: 
	
  
	
  
	
  
	
  

	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
MY SCREEN MOBILE, INC. 
	
  
	
  
	
  
	
  

	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  
	
  
	
By 
	
  
	
 ______________________________
	
  
	
Date of Signature 
	
  
	
 ____________________

	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  

	
  
	
  
	 	
  
	
  
	
  
	
  

	
  
	
  
	
Chief Executive Officer

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