Document:

Exhibit 10.13

 

JUMPTV INC.

 

2006 STOCK APPRECIATION RIGHTS PLAN

 

April 26, 2006, as
amended November 13, 2007 and March 26, 2008

 

1.                                       Purpose

 

The purpose of this Stock Appreciation Rights Plan (the “Plan”) of JumpTV Inc. and any successor thereof (the “Corporation”) is to provide a means whereby the Corporation
may, through the grant of rights (each, a “Right”) to
senior officers and directors of the Corporation (and of any affiliate or
subsidiary of the Corporation) to receive cash compensation based on the
appreciation of the common shares of the Corporation (“Common
Shares”) or to purchase or receive Common Shares in order to
motivate senior officers and directors to exert their best efforts on behalf of
the Corporation (and any affiliate or subsidiary) and to closely align the
personal interests of such senior officers and directors with those of the
shareholders.  Rights to receive cash
compensation or to purchase or receive Common Shares may be granted by the Corporation
from time to time to senior officers and directors of the Corporation, or of
any affiliate or subsidiary of the Corporation, or to personal holding
corporations, the shares of which are held directly or indirectly by such
Rightsholders, and/or their spouses, and/or minor children or grandchildren, or
to registered retirement savings plans established by and for the sole benefit
of such Rightsholders (such persons, corporations and plans shall be considered
to be the class of eligible Rightsholders hereunder).

 

2.                                       Number of Shares
Available Under Plan

 

Common Shares to be issued upon exercise of Rights granted under the
Plan shall be reserved on the date of the grant of such Rights for issuance
upon exercise of such Rights.

 

(a)          Maximum Number.  Subject to adjustment as provided in Subparagraph
4(i) below, the aggregate number of Common Shares which may be reserved
for issuance under the Plan shall not exceed the greater of 4,150,000 or 5% of
the issued and outstanding Common Shares. The Common Shares reserved for
issuance upon the exercise of Rights that (a) expire unexercised; (b) are
exercised by the Rightsholder for the “In The Money Value of the Right” (as
hereinafter defined) in cash pursuant to a Cash Settlement Request (as
hereinafter defined); (c) are exercised for Common Shares issued from
Treasury or purchased by the Corporation in the secondary market pursuant to a
Securites Settlement Request (as defined below); or (d) are exercised for
Common Shares issued from Treasury pursuant to a Treasury Shares Alternative
Settlement Request (as hereinafter defined) pursuant to subparagraphs 4(c), (d) or
(e) below (or any combination thereof), shall be available for subsequent
grants of Rights under the Plan.

 

(b)         Termination, Expiry, etc.  If any Rights
granted under the Plan shall terminate, expire or, with the consent of the
Rightsholder and any applicable regulatory authority, be cancelled such number
of new Rights may thereafter be granted, subject to applicable regulatory
requirements.

 

 

3.                                       Administration

 

(a)          Supervision by Board.  The Plan shall be administered
under the supervision of the board of directors of the Corporation or the
compensation committee of the board of directors (both of which are referred to
hereinafter as the “Board”).

 

(b)         Powers of Board.  Subject to the provisions of the
Plan, the Board shall have the power to:

 

(i)            determine
and designate from time to time those persons to whom Rights under this Plan
are to be granted and the number of Common Shares to be subject to such Rights;
and

 

(ii)           determine the time or times when, and the manner in which,
each Right shall be exercisable and the duration of the exercise period.

 

(c)          Other Rights and Purchase Plans.  A senior officer or
director who has been granted a Right may, if the person is otherwise eligible,
be granted an additional Right or Rights under this Plan or any other option or
purchase plans of the Corporation if the Board shall so determine.

 

(d)         Interpretation: Rules and Regulations.  The Board may
interpret the Plan, prescribe, amend and rescind any rules and regulations
necessary or appropriate for the administration of the Plan, and make such
other determinations and take such other actions as it deems necessary or
advisable.  Without limiting the
generality of the foregoing, the Board may, in its discretion, treat all or any
portion of any period during which a Rightsholder is on an approved leave of
absence from the Corporation, or an affiliate or subsidiary of the Corporation,
as a period of employment of such Rightsholder by the Corporation, or such
affiliate or subsidiary, as the case may be, for the purpose of accrual of the
Rightsholder’s Rights under the Plan. 
Any interpretation, determination or other action made or taken by the
Board shall be final, binding and conclusive.

 

(e)          Discretionary Awards to Non-Employee
Directors.    The Compensation Committee of the Board,
being an independent committee of the Board,
shall administer any discretionary awards to non-employee directors.

 

4.                                       Terms
and Conditions

 

Rights granted under the Plan shall be evidenced by a
Rights agreement, in a form approved by the Board, which shall be subject to
the following express terms and conditions and to such other terms and
conditions as the Board may deem appropriate:

 

(a)          Rights Period.  Each Rights agreement shall
specify the period for which the Rights thereunder are exercisable (which in no
event shall exceed 5 years from the date of grant) and shall provide that the
Rights shall expire at the end of such period.

 

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(b)         Exercise Price.  The exercise price (the “Exercise Price”) of each Right shall be determined by the
Board at the time such Rights are granted but in no event shall such price be
lower than the Market Price (as hereinafter defined) at the time of the grant.

 

“Market Price” means the volume weighted
average trading price of the Common Shares of the Corporation on the TSX, or
another stock exchange where the majority of the trading volume and value of
the Common Shares occurs, calculated by dividing the total value by the total
volume of Common Shares traded for the five (5) trading days immediately
preceding the date of the Rights grant. 
In certain exceptional circumstances and where appropriate, the TSX or
another exchange may exclude certain trades from this calculation and adjust
the market price accordingly.  If the
securities are suspended from trading or have not traded on the TSX or another
exchange for an extended period of time, the market price will be the fair
market value of the listed securities as determined by the Board.

 

(c)          Cash Settlement.  Rightsholders shall be entitled to elect a
cash settlement (“Cash Settlement”)
of the Rights.  A Cash Settlement shall
provide the Rightsholder (or in the event of the death of the Rightsholder, the
Rightsholder’s executors or personal representatives) with the right to
receive, upon the exercise of the Rights (in accordance with the terms of the
Rights), the “In the Money Value of the Right” in cash (a “Cash Payment
Request”).  The Board has
discretionary authority to accept or reject a Cash Payment Request in whole or
in part. If a Cash Payment Request is accepted, the Corporation shall pay the
amount representing the “In the Money Value of the Right” accepted by the Board
within 20 days of receipt of notice of such Cash Payment Request. If a Cash
Payment Request is rejected by the Board in whole or in part, the Rightsholder
shall elect either a Securities Settlement or a Treasury Share Settlement
Alternative in respect of that portion of the Cash Payment Request which was
rejected by the Board.

 

“In the Money
Value of the Right” shall mean the amount by which the weighted
average trading price per Common Share on the TSX, or such other exchange upon
which the Common Shares are then trading, for the “Pricing Date” exceeds the
Exercise Price multiplied by the number of Common Shares for which the Rights
are exercised. The “Pricing Date” shall be the date of exercise (or if the
Common Shares do not trade on the TSX on the exercise date, the next date on
which the Common Shares trade) provided that notice of the exercise of the
Rights is received by the Secretary of the Corporation on or before 9:30 a.m.
local time on the exercise date.  If
notice of exercise is received by the Secretary of the Corporation after 9:30 a.m.
on the exercise date, the Pricing Date shall be the next date upon which the
Common Shares trade on the TSX.

 

(d)         Securities Settlement. In lieu of
receiving a Cash Settlement, Rightsholders shall be entitled to elect to
receive the In the Money Value of the Right in Common Shares (the “Securities Settlement”) by requesting that the Corporation
issue from treasury the number of Common Shares represented by dividing the In
the Money Value of the Right by the Market Price) (a “Securities
Settlement Request”), which Common Shares will be issued from
treasury to the Rightsholder (or, if
deceased, his legal representative) as fully paid and non-assessable
shares in the capital of the Corporation. Notwithstanding the foregoing, if a
Rightsholder requests a Securities Settlement the Corporation, at its
discretion, is entitled to fulfill all or any part of such Securities
Settlement Request by purchasing some or all of the 

 

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Common Shares the
Rightsholder (or, if deceased, his
legal representative) is entitled to receive in the secondary market for
the account of the Rightsholder. Any such Common Shares purchased in the
secondary market to fulfull all or any part of a Securities Settlement Request
shall be transferred to, and registered in the name of, the Rightsholder (or, if deceased, his legal representative)
or as the Rightsholder directs. Upon receipt of a Securities Settlement
Request, the Corporation shall issue or purchase, as the case may be, the
Common Shares which the Rightsholders is entitled to receive within 10 days of
receipt of notice of such Securities Settlement Request.

 

(e)          Treasury Share Settlement Alternative. At the sole option of the
Rightsholder, in lieu of receiving a Cash Settlement or a Securities Settlement
or any combination of the foregoing, the Rightsholder may elect to pay to the
Corporation the Exercise Price and receive that number of Common Shares from
the treasury of the Corporation (the “Treasury
Share Settlement Alternative”). Upon receipt of a request by a
Rightsholder for a Treasury Share Settlement Alternative (a “Treasury Share Settlement Alternative Request”)  in accordance with the provisions of this
plan and the Rights agreement, all such Common Shares shall be issued as
non-assessable and fully paid shares in the capital of the Corporation. Upon
receipt of a Treasury Share Settlement Alternative Request, the Corporation
shall issue the Common Shares which the Rightsholders is entitled to receive
within 10 days of receipt of notice of such Treasury Share Settlement
Alternative Request.

 

For greater certainty, a Rightsholder may elect to receive, upon exercise
of Rights, the value of such exercise partially in cash (pursuant to a Cash
Settlement Request) and partially in Common Shares (pursuant to a Securites
Settlement Request and/or a Treasury Share Settlement Alternative Request).

 

(f)            Exercise of Right.  The Board may specify in any
Rights agreement or resolution authorizing Rights: (i) that no part or
parts of any Right may be exercised until the Rightsholder shall have been a
senior officer or director of the Corporation or an affiliate or subsidiary of
the Corporation for such period after the date on which the Rights are granted
as the Board may specify in the Rights agreement or resolution; or (ii) that
any Rights shall not be exercisable until such vesting period or periods as may
be specified by the Board shall have elapsed.

 

(g)         Payment of Purchase Price Upon Exercise.  The Exercise Price for Common Shares issued upon a Treasury
Share Settlement Alternative Request shall be fully paid in cash or by cheque
to the Corporation at the time of such exercise.

 

(h)         Exercise in the Event of Death or
Termination of Employment, etc.

 

(i)            If a
Rightsholder shall die (or if  the
Rightsholder is a personal holding company controlled by, or a registered
retirement savings plan established by, a senior officer or director, then if
such person shall die) (A) while a senior officer or director of the
Corporation, or of an affiliate or subsidiary of the Corporation, or (B) within
30 days after termination of the Rightsholder’s office or directorship with the
Corporation, or an affiliate or subsidiary of the Corporation, in accordance
with clause (ii) or (iii) 

 

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below, the Rightsholder’s Rights shall expire upon
the earlier of 12 months from the date of death and the expiration date
specified in accordance with Subparagraph 4(a) above.  In the case of Rightsholders who are natural
persons, such right of exercise may be exercised, to the extent that the
Rightsholder shall have been entitled to do so at the date of death, by the
person or persons to whom the Rightsholder’s Rights under the Rights pass by
will or applicable law, or if no such person has such right, by the
Rightsholder’s executors or administrators.

 

(ii)           If a
Rightsholder’s (or, if the Rightsholder is a personal holding company
controlled by, or a registered retirement savings plan established by, a senior
officer or director, then if such person’s) office or directorship with the
Corporation, or an affiliate or subsidiary of the Corporation, shall terminate
because of the Rightsholder’s permanent disability, the Rightsholder may
exercise the Rightsholder’s Rights, to the extent the Rightsholder may be
entitled to at the date of the termination of the Rightsholder’s office with
the Corporation, at any time, or from time to time, within six months of the
date of the termination of the Rightsholder’s office, but in no event later
than the expiration date specified in accordance with Subparagraph 4(a) above;

 

(iii)          If any
Rightsholder’s (or, if the Rightsholder is a personal holding company
controlled by, or a registered retirement savings plan established by, a senior
officer or director, then if such person’s) office or directorship with the
Corporation, or an affiliate or subsidiary of the Corporation, shall terminate
for any reason other than the Rightsholder’s death or permanent disability, the
Rightsholder may exercise the Rightsholder’s Rights, to the extent that the
Rightsholder may be entitled to do so at the date of the termination of the
Rightsholder’s office or directorship, at any time or from time to time, within
90 days of the date of termination of the Rightsholder’s office or
directorship, but in no event later than the expiration date specified in
accordance with Subparagraph 4(a) above; provided that in the case of
termination of office for cause, the Rightsholder’s Rights to exercise the
Rightsholder’s Rights shall cease forthwith upon notice of such termination
being given;

 

(iv)          In the
event of termination in (i), (ii) or (iii) above, the Board shall
have the discretion, in appropriate circumstances, to extend the period for
exercise of the Rightsholder’s Rights, but in no event later than the
expiration date specified in accordance with subparagraph 4(a) above.

 

(i)             Right to Exercise Rights in connection with a Proposed Transaction.

 

(i)            If there is a
Take-over Bid or Issuer Bid (as those terms are defined pursuant to applicable
securities laws), other than a “Normal Course” Issuer Bid, made for all or any
of the issued and outstanding Common Shares, then the Board may, in its sole
discretion, by resolution, permit 

 

5

 

any
or all unvested Rights of any or all Rightsholders outstanding under the Plan
to become immediately exercisable (subject to any limitations the Board may
impose) in order to permit Common Shares issuable pursuant to a Securities
Settlement or Treasury Shares Settlement Alternative election to be tendered to
such bid.

 

(ii)           There shall be
no automatic vesting of unvested Rights held by a Rightsholder in connection
with a Change of Control (as defined below) unless otherwise agreed in an employment
or consulting agreement. For the purposes of this provision, a “Change of
Control” will be deemed to have occurred when:

 

(A)                              a person (which includes a
partnership or corporation) acting alone or jointly or in concert with others,
acquires beneficial ownership of voting securities of the Corporation which,
together with voting securities of the Corporation already owned by such person
or persons, constitutes in the aggregate 50% or more of the outstanding voting
securities of the Corporation (for greater certainty, an initial public
offering of the Corporation’s Common Shares will not constitute a Change of
Control). A person who is principally engaged in the business of managing
investment funds for unaffiliated securities investors and, as a part of such
person’s duties for fully managed accounts, holds or exercises voting power
over voting securities of the Corporation, will not, solely by reason thereof,
be considered to be a beneficial owner of such voting securities;

 

(B)                                the Corporation agrees to
amalgamate, consolidate or merge with another body corporate;

 

(C)                                any resolution is passed or
any action or proceeding is taken with respect to the liquidation, dissolution
or winding up of the Corporation; or

 

(D)                               the Corporation
decides to sell, lease, or otherwise dispose of all, or substantially all, of
its assets.

 

All
unvested Rights held by a Rightsholder shall vest immediately in the event that
such Rightsholder’s office or directorship is terminated at any time prior to
the expiry date of such Rights by virtue of, or in connection with, a Change of
Control, except in the case of termination for cause of such Rightsholder’s
office (in which case such Rights shall not vest).

 

6

 

(j)             Acceleration
of Awards  The Board or any committee of the Board shall
not be permitted to accelerate the vesting of any Rights granted under the Plan
except in the case of death, disability, retirement, change of control or
pursuant to the terms and conditions of any pre-existing employment agreements
(the “Permitted Grounds”).  If the Board
or any committee of the Board accelerates the vesting of any Rights for any
reason other than the Permitted Grounds, the number of Rights in respect of
which vesting is to be accelerated or waived for purposes other than the
Permitted Grounds shall be limited to 10% of the Rights authorized for grant
under the Plan.

 

(k)          Investment Representation, Listing and Regulation.

 

(i)            No Rights
shall be granted under the Plan unless and until the Plan shall have been
approved by the TSX, if required, or any other stock exchange from which
approval is required. However, any Rights granted in accordance with this Plan
by the Board prior to the time when such stock exchange approval is required shall
be valid and binding in accordance with this Plan and the terms of such grant.

 

(ii)           Each Right
shall be subject to the requirement that, if at any time the Board shall
determine, in its discretion, that the registration, qualification or other
approval of or in connection with the Plan is necessary or desirable under any
provincial or federal law, then such Rights may not be exercised (whether in
respect of a Cash Settlement Request, Securities Settlement Request or Treasury
Share Settlement Alternative Request, as appropriate), in whole or in part,
unless and until such registration, qualification or approval shall have been
obtained free of any condition not acceptable to the Board.  The Rightsholder shall, to the extent
applicable, cooperate with the Corporation in relation thereto and shall have
no claim or cause of action against the Corporation or any of its officers,
directors or shareholders as the result of any failure by the Corporation to
take any steps to obtain any such registration, qualification or approval.

 

(iii)          The
granting of Rights and any issuance of Common Shares under the Plan in
accordance with a Securities Settlement Request or a Treasury Shares Settlement
Alternative Request shall be carried out in compliance with applicable securities
laws, statutes, regulations of governmental authorities and applicable stock
exchanges. The Corporation is not obligated by any provision of
this Plan or any grant hereunder to permit the exercise of any Right granted
hereunder in violation of any applicable law.

 

(l)             Adjustments in Event of Change of Common Shares.  Subject to any
required approvals of applicable regulatory authorities and stock exchanges, in
the event of any change in the Common Shares by reason of any stock dividend,
recapitalization, merger, consolidation, split-up, combination or exchange of
shares, or rights offering to purchase Common Shares at a price substantially
below fair market value, or of any similar change 

 

7

 

affecting the Common Shares, the number and kind of
shares which thereafter may be subject to, and sold under, the Plan and the
number and kind of shares subject to the Plan in outstanding Rights agreements
and the Exercise Price thereof shall be appropriately adjusted consistent with
such change in such manner as the Board may deem equitable to prevent
substantial dilution or enlargement of the Rights granted to, or available for,
participants in the Plan.

 

(m)       Liquidation.  In the event the Board shall adopt
a plan of complete liquidation, all Rights shall become immediately exercisable
in full, notwithstanding that they may have been initially granted on an
instalment basis.

 

(n)         No Rights as Shareholder.  No Rightsholder
shall have any Rights as a shareholder with respect to any Common Shares
subject to the Rightsholder’s Rights prior to the date of issuance to such
Rightsholder of a certificate or certificates for such shares in connection
with a Securities Settlement Request or a Treasury Shares Settlement Alternative
Request.

 

(o)         No Rights to Continued Employment.  The Plan and any
Rights granted under the Plan shall not confer upon any Rightsholder any right
with respect to continuance in such Rightsholder’s office or directorship with
the Corporation, or any affiliate or subsidiary of the Corporation, nor shall
they interfere in any way with the right of the Corporation, or any affiliate
or subsidiary of the Corporation, for which a Rightsholder holds an office to
terminate the Rightsholder’s position in such office at any time in accordance
with applicable law, or with the rights of the shareholders of the Corporation
to end the Rightsholder’s directorship with the Corporation.

 

(p)         Financial Assistance.  At the discretion of the Board and
subject to applicable law, the Corporation may provide financial assistance to
any Rightsholder to assist in the exercise of Rights granted hereunder, such
assistance to be in such form and on such terms as the Board may approve
including, without limiting the generality of the foregoing, by way of loan
which may be interest-bearing or non-interest-bearing, recourse or
non-recourse, and secured or unsecured.

 

5.                                       Amendment
and Discontinuance

 

Subject to any
required approval of any regulatory authority or stock exchange, the Board may
at any time or from time to time suspend, terminate or discontinue the
Plan.  Subject to any required approval
of any regulatory authority or stock exchange, the Board may at any time alter,
amend or vary the Plan without the further approval of the shareholders of the
Corporation, if the alteration, amendment or variance:

 

(a)                                  is of a housekeeping nature, including without limitation,
for the purpose of curing any ambiguity, error or omission in the Plan or to
correct or supplement any provision of the Plan that is inconsistent with any
other provision of the Plan;

 

(b)                                 is necessary to comply with applicable law or the
requirements of any stock exchange on which the Common Shares of the
Corporation are listed;

 

8

 

(c)                                  changes the vesting provisions of any Rights; and

 

(d)                                 changes the termination provisions of any Rights or the
Plan which does not entail an extension beyond the original expiry date,

 

provided that, subject to Subparagraph
4(i), in the case of any alteration, amendment or variance referred to in
Subparagraph 5(a) or (b) the alteration, amendment or variance does
not:

 

(e)                                  amend the number of Common Shares issuable under the Plan;

 

(f)                                    change the class of eligible participants to the Plan which
would have the potential of broadening or increasing participation by insiders
of the Corporation;

 

(g)                                 result in a significant or unreasonable dilution in the
number of outstanding Common Shares; or

 

(h)                                 provide additional benefits to eligible participants at the
expense of the Corporation and its existing shareholders.

 

Any
amendment of the Plan in respect of the following shall become effective only
upon shareholder approval thereof, such approval to be obtained in accordance
with applicable corporate and securities law and the rules of any exchange
upon which the Common Shares are listed for trading:

 

(a)                                  an increase in the benefits accrued to
participants under the Plan;

 

(b)                                 an increase to the maximum number of Common
Shares issuable under the Plan;

 

(c)                                  any modification to the requirements for
participation under the Plan;

 

(d)                                 any change to the provisions relating to the
administration of the Plan; and

 

(e)                                  any change to the terms of any awards
including, without limitation, any acceleration provisions.

 

6.                                       Proceeds
from Sales of Common Shares

 

The aggregate Exercise Price received from the sale
of Common Shares issued upon receipt by the Corporation of such Exercise Price
in connection with a Treasury Shares Settelement Alternative Request shall be
added to the general funds of the Corporation and shall thereafter be used from
time to time for such corporate purposes as the Board may determine.

 

7.                                       Withholding

 

If the Corporation in its discretion
determines that the satisfaction of taxes, including withholding tax, or other
withholding liabilities is necessary or desirable in respect of the exercise of
any Right, the exercise of the Right is not effective unless such taxes have
been paid 

 

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or withholdings made to the satisfaction of
the Corporation. At its discretion, the Corporation may require a Rightsholder
to pay to the Corporation, in addition to the exercise price for the number of
Common Shares in respect of which the Right is exercised, any amount as the
Corporation is obliged to remit to the relevant taxing authority in respect of
the exercise of the Right. Any such additional payment is due no later than the
date on which any amount with respect to the Right exercised is required to be
included in the gross income of the Rightsholder for tax purposes. If the
Corporation does not withhold any amount from the exercise of the Right
sufficient to satisfy the withholding obligation of the Corporation, such
Rightsholder agrees it will make reimbursement on demand, in cash, for the
amount withheld.

 

10Exhibit
10.14

AMENDED AND RESTATED RETENTION
WARRANTS PLAN

JUMPTV INC.

 

ARTICLE 1

PURPOSE AND INTERPRETATION

 

1.1                               Purpose

 

The purpose of the Retention Warrants Plan (the “Plan”)
is to advance the interests of the Corporation by (i) providing Eligible
Persons with additional incentive; (ii) encouraging share ownership by
Eligible Persons; (iii) increasing the proprietary interest of Eligible
Persons in the success of the Corporation; (iv) encouraging Eligible
Persons to remain with the Corporation or a related entity; and (v) attracting
new employees, officers, directors and consultants to the Corporation or a
related entity.

 

1.2                               Administration

 

(a)                                  This Plan will be administered by the
Board or a committee of the Board duly appointed for this purpose by the Board
and consisting of not less than 2 Directors. 
If a committee is appointed for this purpose, all references to the term
“Board” will be deemed to be references to the committee.

 

(b)                                 Subject to the limitations of this Plan,
the Board has the authority: (i) to issue Retention Warrants to purchase
Common Shares to Eligible Persons; (ii) to determine the terms, including
the limitations, restrictions and conditions, if any, upon such issuances; (iii) to
interpret this Plan and to adopt, amend and rescind such administrative
guidelines and other rules and Regulations relating to this Plan as it may
from time to time deem advisable, subject to required prior approval by any
applicable regulatory authority; and (iv) to make all other determinations
and to take all other actions in connection with the implementation and
administration of this Plan as it may deem necessary or advisable.  The Board’s guidelines, rules, Regulations,
interpretations and determinations will be conclusive and binding upon all
parties.

 

1.3                               Interpretation

 

For the purposes of this Plan, the following terms
will have the following meanings unless otherwise defined elsewhere in this
Plan:

 

(a)                                  “Blackout Expiry Date” has the meaning
set forth in subclause 2.2(a);

 

(b)                                 “Blackout Period” means the period of
time when, pursuant to any self-imposed policies of the Corporation applicable
to a Retention Warrant holder, the Retention Warrant holder is prohibited from
trading in the Corporation’s securities;

 

(c)                                  “Board” means the board of directors of
the Corporation or a committee thereof appointed in accordance with this Plan;

 

(d)                                 “Consultant” has the meaning prescribed
by National Instrument 45-106 Prospectus and
Registration Exemptions (or successor instrument) and, for greater
certainty means, for an issuer, a person other than an employee, executive
officer, or director of the issuer or of a related entity of the issuer, that:

 

(i)                                     is engaged to provide services to the
issuer or a related entity of the issuer, other than services provided in
relation to a distribution,

 

 

(ii)                                  provides the services under a written
contract with the issuer or a related entity of the issuer, and

 

(iii)                               spends or will spend a significant amount
of time and attention on the affairs and business of the issuer or a related
entity of the issuer,

 

and includes, for
an individual consultant, a corporation of which the individual consultant is
an employee or shareholder, and a partnership of which the individual
consultant is an employee or partner;

 

(e)                                  “Corporation” means JumpTV Inc.;

 

(f)                                    “Eligible Person” means, subject to the
Regulations and to all applicable law:

 

(i)                                     any employee, officer, director or
consultant of (i) the Corporation or (ii) any related entity (and
includes any such person who is on a leave of absence authorized by the Board
or the board of directors of any related entity) designated as an Eligible
Person by the Board; and

 

(ii)                                  at any time from and after the completion
of an initial public offering of the Shares, a Family Trust, Personal Holding
Corporation or Retirement Trust, but for greater certainty, shall not be an
Eligible Person;

 

(g)                                 “Exercise Price” means the price at which
Shares subject to this Plan can be purchased as determined by the Board in
accordance with the Plan;

 

(h)                                 “Family Trust” means a trust, of which at
least one of the trustees is an Eligible Person and the beneficiaries of which
are one or more of the Eligible Person and the spouse, minor children and minor
grandchildren of the Eligible Person;

 

(i)                                     “Holding Entity” means a person that is
controlled by an individual;

 

(j)                                     “Insider” means:

 

(i)                                     an insider as defined in the Securities Act (Ontario), other than a person who falls
within that definition solely by virtue of being a director or senior officer
of a Subsidiary; and

 

(ii)                                  an associate, as defined in the Securities Act (Ontario), of any person who is an Insider by
virtue of (i) above;

 

(k)                                  “Participant” means an Eligible Person to
whom or to whose RRSP a Retention Warrant has been granted;

 

(l)                                     “Permitted Assign” means, for a
Participant:

 

(i)                                     a trustee, custodian or administrator
acting on behalf of, or for the benefit of the person,

 

(ii)                                  a holding entity of the person,

 

(iii)                               an RRSP or a RRIF of the person,

 

(iv)                              a spouse of the person,

 

 

(v)                                 a trustee, custodian or administrator
acting on behalf of, or for the benefit of the spouse of the person,

 

(vi)                              a holding entity of the spouse of the
person, or

 

(vii)                           an RRSP or a RRIF of the spouse of the
person;

 

(m)                               “Personal Holding Corporation” means a
corporation that is controlled by an Eligible Person and the shares of which
are beneficially owned by the Eligible Person and the spouse, minor children
and minor grandchildren of the Eligible Person;

 

(n)                                 “Retention Warrant” means a warrant
issued by the Corporation pursuant to this Plan to purchase Shares;

 

(o)                                 “Plan” means this incentive compensation
plan providing for the issuance of Retention Warrants to purchase shares, as
amended from time to time;

 

(p)                                 “Regulations” means the regulations made
pursuant to this Plan, as same may be amended from time to time;

 

(q)                                 “Related entity” means any person or
company that controls or is controlled by the Corporation or that is controlled
by the same person or company that controls the Corporation;

 

(r)                                    “Retirement Trust” means a trust governed
by a registered retirement savings plan or a registered retirement income fund
established by and for the benefit of an Eligible Person;

 

(s)                                  “RRSP” means a registered retirement
savings plan as defined in the Income Tax Act
(Canada);

 

(t)                                    “RRIF” means a registered retirement
income fund as defined in the Income Tax Act
(Canada);

 

(u)                                 “Share Compensation Arrangement” means
any stock option, stock option plan, employee stock purchase plan, restricted
share plan or any other compensation or incentive mechanism involving the
issuance or potential issuance of Shares to one or more Eligible Persons,
including a share purchase from treasury which is financially assisted by the
Corporation by way of a loan, guarantee or otherwise;

 

(v)                                 “Shares” means the common shares of the
Corporation or such other class of voting shares of the Corporation for which
the common shares may hereafter be converted or exchanged;

 

(w)                               “Subsidiary” means any corporation that
is a subsidiary of the Corporation as defined in the Securities
Act (Ontario);

 

(x)                                   “Termination Date” means the date on
which a Participant ceases to be an eligible Person;

 

(y)                                 “Transfer” includes any sale, exchange,
assignment, gift, bequest, disposition, mortgage, charge, pledge, encumbrance,
grant of security interest or other arrangement 
by which possession, legal title or beneficial ownership passes from one
person to another, or to the same person in a different capacity, whether or
not voluntary and whether or not for value, and any agreement to effect any of
the foregoing;

 

(z)                                   “Trustee” means a person appointed by the
Board to act in the capacity of trustee for the benefit of the Plan;

 

 

(aa)                            “United States” means the United States
of America, its territories and possessions, any State of the United States,
and the District of Columbia;

 

(bb)                          “U.S. Securities Act” means the United
States Securities Act of 1933, as amended; and

 

(cc)                            “Year” means a fiscal year of the
Corporation, as determined from time to time by the Board.

 

Time shall be of the essence with respect to this
Plan.

 

Words importing the singular number include the plural
and vice versa and words importing the masculine gender include the feminine.

 

This Plan is to be governed by and interpreted in
accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein.

 

1.4                               Numbers

 

The maximum number of Shares available for issuance
pursuant to the exercise of Retention Warrants issued pursuant to the Plan
shall be limited to 2,500,000.  For greater
certainty, the maximums set out herein shall be exclusive of all issuances of
warrants made prior to the coming into effect of this Plan (other than those
common share purchase warrants issued by the Corporation pursuant to its
acquisition of the Broadband Network Business of XOS Technologies, Inc. or
issued pursuant to its acquisition of Cycling Television Limited) as well as
any warrants, options, or rights granted under any other security-based
incentive compensation plans of the Corporation and such warrants, options or
rights, as the case may be, shall not be subject to the terms of this
Plan.  No Insiders may be granted
Retention Warrants or are otherwise entitled to a benefit under this Plan.

 

1.5                               Lapsed Retention Warrants

 

In the event that Retention Warrants issued under this
Plan are surrendered in accordance with the provisions of this Plan, terminate
or expire without being exercised in whole or in part, the Shares  reserved for issuance but not purchased under such lapsed
Retention Warrants shall be available for subsequent Retention Warrants to be
issued under Plan.

 

ARTICLE 2

RETENTION WARRANTS PLAN

 

2.1          Issuance

 

(a)                                  Subject to the terms of this Plan, the
Board will have the authority to determine the limitations, restrictions and
conditions, if any, in addition to those set out in this Plan, applicable to
the exercise of a Retention Warrant, including, without limitation, the nature
and duration of the restrictions, if any, to be imposed upon the sale or other
disposition of Shares acquired upon exercise of the Retention Warrant, and the
nature of the events, if any, and the duration of the period in which any
Participant’s rights in respect of Shares acquired upon exercise of a Retention
Warrant may be forfeited.  An Eligible
Person and Eligible Person’s RRSP or RRIF may be issued Retention Warrants on
more than one occasion under this Plan.

 

(b)                                 The effective date of any issuance of
Retention Warrants pursuant to this Plan shall be the date on which the Board
approves such issuance, whether at a meeting of the Board or by written
resolution.

 

 

(c)                                  Subject to the Regulations, the aggregate
number of securities available for issuance under the Plan to any one Eligible
Person and an RRSP or an RRIF of which that person is an annuitant, will be 5%
of the Shares outstanding at the time of the grant (on a non-diluted basis).

 

2.2          Exercise
of Retention Warrants

 

(a)                                  Retention Warrants issued must be
exercised no later than 5 years after the date of the issuance or such lesser
period as the applicable issuance, the Regulations or the provisions of this
Plan may require (the “Expiry Date”): provided, however, in the event that a
Retention Warrant is scheduled to expire or terminate during or within 10
business days following a Blackout Period, the Expiry Date shall be the date
that is the tenth business day following the date of expiry of the Blackout
Period (the “Blackout Expiry Date”).  If
a new Blackout Period is imposed prior to the Blackout Expiry Date, the
Blackout Expiry Date shall be the date that is the tenth business day following
the date of expiry of the new Blackout Period.

 

(b)                                 The Board may determine when any
Retention Warrant will become exercisable and may determine that the Retention
Warrant will be exercisable in installments.

 

(c)                                  No fractional Shares may be issued and
the Board may determine the manner in which fractional Share value will be
treated.

 

(d)                                 Not less than 100 Shares may be purchased
at one time except where the remainder totals less than 100.

 

2.3          Exercise
Price of Retention Warrants

 

Subject to the applicable rules of any stock
exchange or quotation system on which the Shares may be listed from time to
time, the Board will establish the Exercise Price of a Retention Warrant at the
time each Retention Warrant is granted on the basis of the closing market price
of the Shares on the market with the largest trading volume of the Shares on
the last trading date preceding the date of the issuance.  If there is no trading on that date, the
Exercise Price of a Retention Warrant will be the average of the bid and ask on
the preceding the date of the issuance. 
If there is no trading market for the Shares, the Board will in good
faith determine the Exercise Price of a Retention Warrant based on the fair
market value of the Shares on the date of the issuance.  If the Retention Warrant is to be issued on a
pre-determined date in the future, the Exercise Price of a Retention Warrant
will be the weighted average trading price, rounding up to the nearest cent, of
the Shares on the stock exchange or quotation system upon which any shares of
the Corporation are then listed and posted or quoted for trading for the five
trading dates preceding the date of the issuance.

 

2.4          Issuance
to Participant’s RRSP or RRIF

 

Upon written notice from the Participant, any
Retention Warrant that might otherwise be issued to that Participant will be
issued, in whole or in part, to an RRSP or an RRIF established by and for the
sole benefit of the Participant.  The determination
of whether and the extent to which a Participant is entitled by applicable tax
law to contribute Retention Warrants to the Participant’s RRSP or RRIF shall be
the responsibility of the Participant.

 

2.5          Termination,
Retirement, Death or Departure

 

(a)                                  Subject to subsection (c), if a Participant
ceases to be an Eligible Person for any reason whatsoever other than death,
each Retention Warrant held by the Participant, the Participant’s Permitted
Assigns, or the Participant’s RRSP or RRIF will cease to be exercisable 90 days
after the Termination Date.  If any
portion of a Retention Warrant has not vested by the Termination Date, that
portion of a Retention Warrant may not under any circumstances be exercised by
the Participant’ the Participant’s Permitted Assigns or the Participant’s RRSP
or RRIF.  This subsection (a) will
apply regardless whether the Participant received compensation in respect of
dismissal or was entitled to a period of notice of termination which would
otherwise have 

 

 

permitted a greater portion of the Retention Warrant
to vest in the Participant, the Participant’s Permitted Assigns or the
Participant’s RRSP or RRIF.

 

(b)                                 If a Participant dies, the legal
representatives of the Participant may exercise the Participant’s Retention
Warrants, the Participant’s Permitted Assign’s Retention Warrants and the
participant’s RRSP Retention Warrants or RRIF Retention Warrants within 120
days after the date of the participant’s death but only to the extent the
Retention Warrants were by their terms exercisable on the date of death.

 

(c)                                  In the event that a Participant’s
employment, consultancy or directorship, as applicable, is terminated by the
Corporation for cause (as defined in such Participant’s employment or
consulting agreement, as applicable), such Participant’s Retention Warrants and
its Permitted Assign’s Retention Warrants, whether vested or otherwise, shall
immediately terminate.  Notwithstanding
the foregoing or anything to the contrary herein, the Board shall have
discretion to permit such Participant and its Permitted Assigns to exercise the
vested portion of such Participant’s Retention Warrants (as of the termination
date).  The Board shall have a period of
30 days to exercise its discretion to permit the exercise of such Participant’s
Retention Warrants and in the event of such exercise of discretion, the
Retention Warrants shall be deemed not to have been terminated as of the
termination date of the Participant’s employment, consultancy or directorship,
as applicable.

 

2.6          Retention
Warrant Agreements

 

Each Retention Warrant must be confirmed, and will be
governed, by an agreement (a “Retention Warrant Agreement”) substantially in
the form of Schedule “A” attached hereto (as the same may be amended from time
to time by the Regulations) and signed by the Corporation.

 

2.7          Payment
of Retention Warrant Price

 

Subject to section 2.9, the exercise price of each
Share purchased pursuant to the exercise of a Retention Warrant must be paid in
full by bank draft or certified cheque at the time of exercise, and upon
receipt of payment in full, but subject to the terms of this Plan, the number
of Shares in respect of which the Retention Warrant is exercised will be duly
issued as fully paid and non-assessable.

 

2.8          Cashless
Exercise

 

If the Shares are listed and posted for trading on a
stock exchange or market, a Participant may elect “cashless” exercise in a
notice of exercise if the Shares issuable on exercise are to be immediately
sold.  In such case, the Participant will
not be required to deliver to the Corporation the certified cheque or bank
draft referred to in section 2.7. Instead the following procedure will be
followed, as detailed in a Cashless Exercise Instruction Form to be
provided by the Corporation and completed by the Participant:

 

(a)                                  the Participant will instruct a broker
selected by the Participant to sell through the exchange or market on which the
Shares are listed or quoted the Shares issuable or exercise of a Retention
Warrant, as soon as possible and the then applicable bid price of the Shares;

 

(b)                                 on the settlement date for the trade, the
Corporation will direct its registrar and transfer agent to issue a certificate
in the name of the broker (or as the broker may otherwise direct) for the
number of Shares issued on exercise of the Retention Warrant, against payment
by the broker to the Corporation of the exercise price for such Shares; and

 

(c)                                  the broker will deliver to the
Participant the remaining proceeds of sale, net of the brokerage commission.

 

 

2.9          Withholding

 

If the Corporation in its discretion determines that
the satisfaction of taxes, including withholding tax, or other withholding
liabilities is necessary or desirable in respect of the exercise of any
Retention Warrant, the exercise of the Retention Warrant is not effective
unless such taxes have been paid or withholdings made to the satisfaction of
the Corporation.  At its discretion, the
Corporation may require a Participant to pay to the Corporation, in addition to
the exercise price for the number of Shares in respect of which the Retention
Warrant is exercised, any amount as the Corporation is obliged to remit to the
relevant taxing authority in respect to the exercise of the Retention
Warrant.  Any such additional payment is
due no later than the date on which any amount with respect to the Retention
Warrant exercised is required to be included in the gross income of the
Participant for tax purposes.  If the
Corporation does not withhold any amount from the exercise of the Retention
Warrant sufficient to satisfy the withholding obligation of the Corporation,
such Participant agrees it will make reimbursement on demand, in cash, for the
amount withheld.

 

ARTICLE 3

 

GENERAL

 

3.1          Right
to Exercise Retention Warrants in connection with a Proposed Transaction

 

(a)                                  If there is a Take-over Bid or Issuer Bid
(other than a “Normal Course” Issuer Bid) made for all or any of the issued and
outstanding Shares, then the Board may, in its sole discretion, by resolution
permit any or all unvested Retention Warrants outstanding under the Plan to
become immediately exercisable (subject to any limitation the Board of
Directors may impose) in order to permit Shares issuable under such Retention
Warrants to be tendered to such bid.

 

(b)                                 There shall be no automatic vesting of
unvested Retention Warrants in the event of a Change of Control (as defined
below) unless otherwise agreed in a Participant’s employment or consulting
agreement; however, the Board may, in its sole discretion, by resolution permit
any or all unvested Retention Warrants of any or all Participants outstanding
under the Plan to become immediately exercisable (subject to any limitations
the Board may impose) in the event of a Change of Control.  For the purposes of this provision , a “Change
of Control” will be deemed to have occurred when:

 

(i)                                     a person (which includes a partnership or
corporation) acting alone or jointly or in concert with others, acquires
beneficial ownership of voting securities of the Corporation which, together
with voting securities of the Corporation already owned by such person or
persons, constitutes in the aggregate 50% or more of the outstanding voting
securities of the Corporation (for greater certainty, an initial public
offering of the Corporation’s Shares will not constitute a Change of
Control).  A person who is principally
engaged in the business of managing investment funds for unaffiliated
securities investors and, as a part of such person’s duties for fully managed
accounts, holds or exercises voting power over voting securities of the
Corporation, will not, solely by reason thereof, be considered to be a
beneficial owner of such voting securities;

 

(ii)                                  the Corporation agrees to amalgamate,
consolidate or merge with another body corporate;

 

(iii)                               any resolution is passed or any action or
proceeding is taken with respect to the liquidation, dissolution or winding up
of the Corporation; or

 

(iv)                              the Corporation decides to sell, lease,
or otherwise dispose of all, or substantially all, of its assets.

 

All unvested
Retention Warrants held by an Eligible Person shall vest immediately in the
event that such Eligible Participant’s employment or consultancy is terminated
at any time prior to the 

 

 

expiry date of
such Retention Warrants by virtue of, or in connection with, a Change of
Control, except in the case of termination for cause of such Eligible
Participant’s employment or consultancy (in which case such Retention Warrants
shall not vest).

 

3.2          Acceleration
or Waiving of Vesting Periods

 

The Board shall not accelerate or waive vesting
periods of any Retention Warrants issuable under the Plan except pursuant to
the provisions of this Plan in the case of death, disability, retirement or
Change of Control (the “Permitted Grounds”). 
If the Board or any committee of the Board accelerates or waives the
vesting period for any reason other than the Permitted Grounds, the number of
Retention Warrants in respect of which vesting is to be accelerated or waived
for purposes other than the Permitted Grounds shall be limited to 10% of the
securities authorized for issuance under the Plan.

 

3.3          Prohibition
on Transfer of Retention Warrants

 

Retention Warrants are personal to each Eligible
Person and its Permitted Assigns.  No
Eligible Person may deal with any Retention Warrants or any interest in them or
Transfer any Retention Warrants now or hereafter held by the Eligible Person
except in accordance with the Plan.  A
purported Transfer of any Retention Warrants in violation of the Plan will not
be valid and the Corporation  shall not
issue any Share upon the attempted exercise of improperly Transferred Retention
Warrants.

 

3.4          Prohibition
on Transfer of Shares

 

No Participant will, upon exercise of a Retention
Warrant, deal with any Share or any interest in it or Transfer any Share now or
hereafter held by the Participant, the Participant’s Permitted Assigns or the
Participant’s RRSP or RRIF except in accordance with the Articles of the
Corporation.

 

3.5          Capital
Adjustments

 

If there is any change in the outstanding Shares by
reason of a stock dividend or split, recapitalization, consolidation,
combination or exchange of shares, or other fundamental corporate change, the
Board will make an appropriate substitution or adjustment in (i) the
exercise price of any unexercised Retention Warrants under the Plan; (ii) the
number or kind of shares or other securities reserved for issuance pursuant to
this Plan; and (iii) the purchase price of those shares subject to
unexercised Retention Warrants theretofore granted under the Plan, and in the
exercise price of those unexercised Retention Warrants; provided, however, that
no substitution or adjustment will obligate the Corporation to issue or sell
fractional Shares.  In the event of the
reorganization of the Corporation or the amalgamation or consolidation of the
Corporation with another corporation, the Board may make such provision for the
protection of the rights of Eligible Persons, Participants and their RRSPs or
their RRIFs as the Board in its discretion deems appropriate.  The determination of the Board, as to any
adjustment or as to there being no need for adjustment, will be final and
binding on all parties.

 

3.6          Non-Exclusivity

 

Nothing contained herein will prevent the Board from
adopting other or additional compensation arrangements for the benefit of any
Eligible Person or Participant, subject to any required regulatory or
shareholder approval.

 

3.7          Amendment
and Termination

 

(a)                                  The Board shall have the power and
authority, without notice or shareholder approval, at any time and from time to
time, to suspend or terminate the Plan or any Retention Warrant Agreement.  Without limiting the foregoing, the Board
shall have the authority to amend the Plan as follows without seeking
shareholder approval:

 

 

(i)                                     an increase of the limits on the total
number of Shares reserved for issuance under the Plan to any one Eligible
Person and to an RRSP or an RRIF of which that Eligible Person is an annuitant
under section 2.1;

 

(ii)                                  an amendment to the transferability or
assignability of a Retention Warrant including for estate settlement purposes;

 

(iii)                               as may be necessary to comply with
applicable law or the requirements of any applicable regulatory authority or
stock exchange;

 

(iv)                              to correct or rectify any ambiguity,
defective provision, error or omission in the Plan or a Retention Warrant Agreement;
and

 

(v)                                 to make any other amendment to the Plan
or Retention Warrant Agreement that does not require Shareholder approval by
virtue of the provisions of the Plan, applicable laws or relevant regulatory or
stock exchange requirements.

 

(b)                                 No such amendment, suspension or
termination of the Plan or any Retention Warrant Agreement as set out in
subsection 3.7(a) above shall be made to the extent that such action would
adversely affect the existing rights of any Retention Warrant holder under any
Retention Warrant Agreement, without the consent of the Retention Warrant
holder.

 

(c)                                  Any amendment of the Plan or any
Retention Warrant Agreement in respect of the following shall become effective
only upon shareholder approval thereof, such approval to be obtained in
accordance with applicable regulatory requirements:

 

(i)                                     an extension of the term of Retention
Warrants beyond the Expiry Date, other than for Retention Warrants held by
Insiders;

 

(ii)                                  an expansion of the scope of persons
eligible to participate in the Plan;

 

(iii)                               changing the terms of a Retention Warrant
including, without limitation, any vesting provisions;

 

(iv)                              to change the provisions relating to the
administration of the Plan;

 

(v)                                 to make capital adjustments to the
Exercise Price of the Retention Warrants as provided in section 3.5, hereof;

 

(vi)                              a reduction in the Exercise Price of the
Retention Warrants with respect to any Retention Warrant other than where such
reduction would result in the Exercise Price of the Retention Warrants being
lower than the price determined for such Retention Warrant pursuant to section
2.3 hereof at the time such Retention Warrant was issued;

 

(vii)                           an increase in the maximum number of
Shares issuable under the Plan;

 

(viii)                        an increase in the benefits accrued to
participants under the Plan; and

 

(ix)                                a modification in the requirements for
participation under the Plan.

 

 

(d)                                 If this Plan is terminated pursuant to
section 3.7(a) hereof or otherwise, the provision of this Plan and any
administrative guidelines, and other rules and Regulations adopted by the
Board and in force at the time of this Plan, will continue in effect as long as
any Retention Warrants under the Plan or any rights pursuant thereto remain
outstanding.  However, notwithstanding
the termination of the Plan, the Board may make any amendments to the Plan or
the Retention Warrants it would be entitled to make if the Plan were still in
effect.

 

(e)                                  Where shareholder approval of an
amendment is required pursuant to section 3.6(c) above, such shareholder
approval may be given by way of confirmation at the next meeting of
shareholders after the amendment is made, provided that no Retention Warrants
may be exercised pursuant to the amended terms prior thereto.

 

3.8          Compliance with Legislation

 

(a)                                  The Board may postpone or adjust any
exercise of any Retention Warrants or the issue of any Shares pursuant to this
Plan as the Board in its discretion may deem necessary in order to permit the
Corporation to effect or maintain registration of this Plan or the Shares
issuable pursuant thereto under the securities laws of any applicable
jurisdiction, or to determine that the Shares and this Plan are exempt from
such registration.  The Corporation is
not obligated by any provision of this Plan or any grant hereunder to sell or
issue Shares in violation of any applicable law.  In addition, if the Shares are listed on a
stock exchange, the Corporation will have no obligation to issue any Shares
pursuant to this Plan unless the Shares have been duly listed, upon official
notice of issuance, on a stock exchange on which the Shares are listed for
trading.

 

(b)                                 Without limiting the generality of Section 3.8(a),
with regard to Participants who are residents of the United States, the Board
may administer this Plan in accordance with Rule 701 or Rule 506 of
Regulation D under the U.S. Securities Act or otherwise in accordance with the
advice of counsel, and in accordance with applicable state securities
laws.  Each certificate representing
Shares acquired in accordance with this Section 3.8(b) shall bear one
or more legends making appropriate reference to the restrictions imposed under
applicable securities laws with regard to such Shares.

 

3.9                               Effective Date

 

This Plan will become
effective immediately upon approval of the Board, subject to any required
regulatory and shareholder approval.

 

3.10        Record Keeping

 

The Corporation shall
maintain a register in which shall be recorded:

 

(a)                                  the name and address of each Participant
in the Plan; and

 

(b)                                 the number of Retention Warrants issued
to a Participant and the number of Retention Warrants outstanding.

 

 

RETENTION WARRANTS PLAN

REGULATIONS

 

1.               In these Regulations, words defined in this Plan and
not otherwise defined herein will have the same meaning as set forth in this
Plan.

 

2.               A Participant will cease to be an Eligible Person on
the earliest to occur of:

 

(a)          the date of the Participant’s termination, retirement
or cessation of employment with or engagement by the Corporation or any of its
related entities;

 

(b)         the date of the Participant’s death; and

 

(c)          the date on which the Participant otherwise fails to
meet the criteria set forth under the definition of an Eligible Person.

 

3.               If the legal representative of a Participant who has
died exercises the Retention Warrant of the Participant or the Participant’s
RRSP or RRIF in accordance with the terms of the Plan, the Corporation will
have no obligation to issue the Shares until evidence satisfactory to the
Corporation has been provided by the legal representative that the legal
representative is entitled to purchase the Shares under this Plan.

 

 

Schedule “A”
to Retention Warrants Plan

 

PERSONAL AND CONFIDENTIAL

 

·, 200·

 

<<Name and Address of Retention Warrant
holder>>

 

Dear <<First Name>>

 

The Retention Warrants
Plan (the “Plan”) governing the issuance of retention warrants (“Retention
Warrants”) to purchase common shares (“Shares”) of JumpTV Inc. (the “Corporation”)
permits the board of directors (the “Board”) of the Corporation to issue
Retention Warrants to officers, employees and certain others whose contribution
to the Corporation are significant.  In
recognition of your future and continuing contribution to the Corporation and
in order to permit you to share in enhanced value that you will help to create,
the Board is pleased to issue you, as of <<Date of
Issue>> Retention Warrants to purchase Shares of the
Corporation.  This agreement (the “Agreement”)
is granted on the basis set out in this letter, and is subject to the
Plan.  This Agreement and the Plan are
referred to collectively as the “Documents”. 
All capitalized terms not otherwise defined are to bear the meaning
attributed to them in the Plan, a copy of which is attached hereto as Schedule “A”.

 

The total number of
Shares that you may purchase pursuant to this Agreement is: <<Amount>>

 

The price you must pay
for each Share to be acquired on the exercise of the Retention Warrants is: <<Price>>

 

Your Retention Warrants
will vest and are exercisable in the following manner:

 

	
   

  	
   

  	
  Percentage of Retention
  Warrants Exercisable

  	
   

  	
   

  
	
  Vesting Date

  	
   

  	
  On or After Vesting Date

  	
   

  	
  Expiry Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  

 

Subject to earlier
expiration in accordance with the Documents, your rights to purchase Shares
pursuant to this Retention Warrant will expire at 5:00 p.m. on <<ExpiryDate>> (unless such expiration falls within a
Blackout Period, in which case the your rights to purchase Shares will expire
on the Blackout Expiry Date).

 

The Retention Warrants
may be exercised in whole or in part in respect of vested Retention Warrants at
any time prior to expiry of the relevant Retention Warrants.  The Retention Warrants may not be exercised
in amounts less than 100 Shares in the case of any one exercise unless that
exercise would entirely exhaust the Retention Warrants.

 

You may exercise your
vested Retention Warrants at any time before the Expiry Date, or in the
Blackout Expiry Date, as the case may be, by delivering to the Corporation a
completed exercise notice (similar to the attached Schedule ‘B”) together with
cash or a certified cheque payable to “JumpTV Inc.” in the amount of the total
Exercise Price Per Retention Warrant of the number of Shares being
purchased.  No fractional Shares will be
issued upon exercise of Retention Warrants, and the Corporation will satisfy
such fractional interest by paying a cash adjustment in an amount equal to the
same fraction of the exercise price.

 

 

All decisions made by the
Board with regard to any questions arising in connection with the Documents,
whether of interpretation or otherwise, will be binding and conclusive on all
parties.

 

This Agreement is
personal and may not be sold, pledged, transferred or encumbered in any
way.  There are restrictions on the
transfer of Shares issued to you pursuant to the Plan.  As well, restrictions apply in connection with
cessation of engagement.  Complete
details of these restrictions are set out in the Plan.

 

This Agreement shall be
governed by and construed in accordance with the laws of the Province of
Ontario.

 

Please acknowledge your
acceptance of this Agreement by signing where indicated below on the enclosed
copy of this letter and returning the signed copy to the Corporation, attention
Human Resources.  By signing and
delivering this copy, you are agreeing to be bound by all terms of the
Documents.

 

Yours truly,

 

JumpTV Inc.

 

 

	
  Per:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signing
  Officer

  

 

I have read and agree to
be bound by this letter.

 

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  Witness:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witness Name:

  	
   

  	
   

  
	
  (Printed)

  	
   

  	
   

  

 

 

Schedule
B to Retention Warrants Plan

 

RETENTION
WARRANT EXERCISE NOTICE

 

To: JumpTV Inc. (the “Corporation”)

 

The undersigned hereby
irrevocably elects to exercise Retention Warrants for the number of common
shares in the capital of the Corporation as set forth below:

 

	
  (a)

  	
  number of common shares
  to be acquired:

  
	
   

  	
   

  
	
  (b)

  	
  Retention Warrant
  exercise price per common share:

  	
  $

  
	
   

  	
   

  
	
  (c)

  	
  total purchase price [(a) time
  (b)]:

  	
  $

  

 

 

and hereby tenders to the
Corporation cash / a certified cheque (circle one) for
the total purchase price for the common shares, and directs the Corporation to
register the common shares and issue a certificate therefor, as set forth
below:

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name
  of Registered Holder — please print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address
  of Registered Holder — please print)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

DATED this
                  
day of
                                          ,
                          .

 

WITNESS:

	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
  Signature of Witness

  	
   

  	
  )

  	
   

  	
  (Signature of Retention
  Warrant Holder)

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  (Name of Retention Warrant Holder — please print)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]