Document:

Exhibit
10.11

 

TERMINATION
FACT SHEET/SEPERATION AGREEMENT

 

NAME: Bill Stephen

 

LAST DAY WORKED: September 15,
2008

 

Your employment with the
company is being terminated.  Due to that
even, you have rights to access certain benefits that are summarized below.

 

·                  COBRA – Your group health plan, which includes
medical, dental and vision insurance, will end on October 31, 2008.  You will then have 60 days in which to make a
decision about whether you want to continue insurance coverage under
COBRA.  Within 30 days of the date your
coverage ends, you will receive a letter from our COBRA carrier with
information on the costs and enrollment forms. 
All payments will be made directly to the COBRA Carrier.

 

·                  VACATION – 113.90 accrued but unused vacation will be
paid out in one lump-sum payment in your final paycheck.

 

RETURN OF COMPANY PROPERTY:
During the course of your employment, you have had access to confidential
information and proprietary information (“Information”).  In consideration of the benefits received by
you under this agreement, you agree to keep all Information strictly
confidential and will not reveal any Information to any person nor use it for
your own benefit.  On or before September 15,
2008, you will return, to JumpTV, all records and materials in your possession
or under your control containing any information.  You also agree to return any keys or company
issued equipment.

 

You will be paid through October 17,
2008.

 

In consideration of the benefits
granted to you above: You hereby irrevocable and unconditionally release and
discharge JumpTV, its owners and affiliates and their directors, officers,
employees, former employees, and agents from any and all claims, liabilities,
obligations, promises, actions, suits or demands of any nature, known or unknown,
including, but not limited to, rights under Federal, state or local laws
prohibiting age, sex, sexual orientation, race, disability, national origin,
religion or other forms of discrimination, and claims growing out of any legal
restriction on JumpTV’s right to terminate its employees which you have or may
have accrued through this date.  You
covenant not to sue JumpTV or any of its owners, and 

 

 

affiliates, and their
directors, officers, employees, former employees, or agents in connection with
any of the above released claims.  This
release does not prohibit you from receiving Unemployment Compensation for
which you may be entitled.  Without
waiving any of the foregoing, this waiver shall irrevocably and unconditionally
release your rights under the Age Discrimination in Employment Act, the
Americas with Disabilities Act of 1990, Title VII of the Civil Rights Act of
1964.  You further agree to irrevocable
waive any right to recover under any claim that may be filed by the Equal
Employment Opportunity Commission with respect to your employment with JumpTV.

 

Both you and JumpTV each
agree that the other has made no admission of any liability or wrong doing
whatsoever.  This Agreement is knowingly
and voluntarily entered into by each party.

 

This offer expires
twenty-one (21) days after your receipt of this letter.

 

For a period of seven days
after the date of execution of this Agreement, you have the right to revoke
this Agreement.  The Agreement shall not
be effective or enforceable until seven days after the date of execution, if
not revoked by you prior hereto.

 

This Agreement shall be
governed by and construed in accordance with the laws of the State of
Florida.  The provisions of this
Agreement are severable, and if any part of it is found to be unenforceable,
the other provisions shall remain fully valid and enforceable at the discretion
of JumpTV.

 

Please confirm your
understanding of our agreement by indicating in the space provided on the next page and
returning one copy to me.

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
  /s/ Cynthia L. Primm

  	
   

  
	
  Cynthia L. Primm

  	
   

  
	
  Chief People Officer

  	
   

  

 

The above accurately
reflects the agreement regarding my separation from JumpTV, Inc.

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ William Stephen

  	
   

  	
  9/23/08

  
	
  Signature

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
  William Stephen

  	
   

  	
   

  
	
  Printed NameExhibit 10.12

 

JUMPTV INC.

 

 

SECOND AMENDED AND RESTATED STOCK OPTION PLAN

 

 

May 2007

 

 

TABLE OF CONTENTS

 

	
  JUMPTV INC.

  	
  3

  
	
   

  	
   

  
	
  ARTICLE 1: PURPOSE AND INTERPRETATION

  	
  3

  
	
   

  	
   

  
	
  1.1.

  	
  PLAN

  	
  3

  
	
  1.2.

  	
  PURPOSE

  	
  3

  
	
  1.3.

  	
  ADMINISTRATION

  	
  3

  
	
  1.4.

  	
  INTERPRETATION

  	
  3

  
	
  1.5.

  	
  NUMBERS

  	
  7

  
	
  1.6.

  	
  LAPSED OPTIONS

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2: STOCK OPTION PLAN

  	
  7

  
	
   

  	
   

  
	
  2.1.

  	
  GRANTS

  	
  7

  
	
  2.2.

  	
  EXERCISE OF OPTIONS

  	
  8

  
	
  2.3

  	
  SHARE OPTION PRICE

  	
  8

  
	
  2.4

  	
  GRANT TO PARTICIPANT’S RRSP OR RRIF

  	
  8

  
	
  2.5

  	
  TERMINATION, RETIREMENT, DEATH OR DEPARTURE

  	
  9

  
	
  2.6

  	
  OPTIONS AGREEMENTS

  	
  9

  
	
  2.7

  	
  PAYMENT OF OPTION PRICE

  	
  9

  
	
  2.8

  	
  CASHLESS EXERCISE

  	
  10

  
	
  2.9

  	
  WITHHOLDING

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3: GENERAL

  	
  11

  
	
   

  	
   

  
	
  3.1

  	
  RIGHT TO EXERCISE OPTIONS IN CONNECTION WITH A PROPOSED
  TRANSACTION

  	
  11

  
	
  3.2

  	
  PROHIBITION ON TRANSFER OF OPTIONS

  	
  11

  
	
  3.3

  	
  PROHIBITION ON TRANSFER OF SHARES

  	
  12

  
	
  3.4

  	
  CAPITAL ADJUSTMENTS

  	
  12

  
	
  3.5

  	
  NON-EXCLUSIVITY

  	
  12

  
	
  3.6

  	
  AMENDMENT AND TERMINATION

  	
  12

  
	
  3.7

  	
  COMPLIANCE WITH LEGISLATION

  	
  14

  
	
  3.8

  	
  EFFECTIVE DATE

  	
  15

  
	
   

  	
   

  	
   

  
	
  REGULATIONS UNDER PLAN

  	
   

  
	
   

  	
   

  
	
  Schedule “A” - Notice of Option Grant

  	
   

  

 

 

JUMPTV INC.

 

ARTICLE 1.

 

PURPOSE AND INTERPRETATION

 

1.1.                            Plan

 

This
Plan consists of a Stock Option Plan and supersedes any and all prior plans
relating to the granting of stock options by the Corporation.

 

1.2.                            Purpose

 

The
purpose of this Plan is to advance the interests of the Corporation by (i) providing
Eligible Persons with additional incentive; (ii) encouraging stock
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.

 

1.3.                            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 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 grant Options to  purchase Shares to Eligible Persons; (ii) to
determine the terms, including the limitations, restrictions and conditions, if
any, upon such grants; (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.

 

1.4.                            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);

 

3

 

(b)                                 “Blackout Period” means the period of time
when, pursuant to any self-imposed policies of the Corporation applicable to an
Optionee, the Optionee 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 the Plan;

 

(d)                                 “consultant” has the meaning prescribed by
Nation Instrument 45-106 Prospectus and
Registration Exemptions  (or a
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;

 

(g)                                 “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;

 

(h)                                 “holding entity” means a person that is
controlled by an individual;

 

(i)                                     “Insider” means:

 

(i)                                     an insider as defined in the Securities Act (Ontario), other than a person who falls
within

 

4

 

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;

 

(j)                                     “Option” means an option granted to an
Eligible Person to purchase Shares of the Corporation pursuant to the terms of
the Plan;

 

(k)                                  “Participant” means an eligible Person to
whom or to whose RRSP an Option 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)                                 “Plan” means the Corporation’s Stock Option
Plan, as amended from time to time;

 

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

 

(p)                                 “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;

 

(q)                                 “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;

 

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

 

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

 

5

 

(t)                                    “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;

 

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

 

(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 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.

 

6

 

1.5.                            Numbers

 

The
Maximum number of Shares available for purchase or issuance under this Plan is
equal to the greater of (i) 4,000,000 Shares; and (ii) 12.5% of the
number of issued and outstanding Shares from time to time.  For greater certainty, the maximums set out
herein shall be exclusive of all grants of options made prior to the coming into
effect of this Plan as well as any rights granted under any other
security-based incentive compensation plans of the Corporation and such options
and rights, as the case may be, shall not be subject to the terms of this Plan.

 

1.6.                            Lapsed Options

 

In
the event that Options granted 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 Options shall be available for subsequent Options to be granted
under Plan.

 

ARTICLE 2.

 

STOCK OPTION PLAN

 

2.1.                            Grants

 

(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 an Option, 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 Option, 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 an Option may be
forfeited.  An Eligible Person and the
Eligible Person’s RRSP or RRIF may receive Options on more than one occasion
under this Plan.

 

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

 

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), or such other number as the shareholders of the
Corporation shall approve in accordance with the requirements of any stock
exchange or quotation system upon which any shares of the Corporation are then
listed and posted or quoted for trading.

 

7

 

2.2.                            Exercise of Options

 

(a)                                  Options must be exercised no later than 5
years after the date of grant or such lesser period as the applicable grant,
the Regulations or the provisions of this Plan may require (the “Expiry Date”);
provided, however, in the event that an Option 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 Option will
become exercisable and may determine that the Option 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
any one time except where the remainder totals less than 100.

 

2.3                               Share Option Price

 

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 Share
Option Price at the time each Option 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 grant.  If there is no trading on that date, the
Share Option Price will be the average of the bid and ask on the date preceding
the date of the grant.  If there is no trading
market for the Shares, the Board will in good faith determine the Share Option
Price of an Option based on the fair market value of the Shares on the date of
the grant.  If the Option is to be
granted on a pre-determined date in the future, the Share Option Price 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 grant.

 

2.4                               Grant to Participant’s RRSP or RRIF

 

Upon
written notice from the Participant,  any
Option that might otherwise be granted to that Participant will be granted, 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 Option to the Participant’s RRSP or RRIF shall be the
responsibility of the Participant.

 

8

 

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 Option 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 an
Option has not vested by the Termination Date, that portion of the Option 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 Option 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 Options, the
Participant’s Permitted Assign’s Options and the participant’s RRSP Options or
RRIF Options within 120 days after the date of the participant’s death but only
to the extent the Options 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 Options and its Permitted Assign’s Options,
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
Options (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 Options and in the event of such
exercise of discretion, the Options 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                               Option Agreements

 

Each
Option must be confirmed, and will be governed, by an agreement (an “Option
Agreement”) in the form of Schedule “A” attached hereto (as the same may be
amended from time to time by the Regulations) signed by the Corporation and the
Participant or an RRSP or an RRIF of which that person is an annuitant.

 

2.7                               Payment of Option Price

 

Subject
to section 2.9, the exercise price of each Share purchased under an Option 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 Option is exercised will be duly
issued as fully paid and non-assessable.

 

9

 

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 on exercise of an Option, 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 Option, 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 Option, the exercise of the Option
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 Option is exercised, any amount as the Corporation is obliged to
remit to the relevant taxing authority in respect to the exercise of the
Option.  Any such additional payment is
due no later than the date on which any amount with respect to the Option
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 Option sufficient to satisfy
the withholding obligation of the Corporation, such Participant agrees it will
make reimbursement on demand, in cash, for the amount withheld.

 

10

 

ARTICLE 3

 

GENERAL

 

3.1          Right to Exercise Options 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 of Directors may, in its sole discretion, by
resolution permit any or all unvested Options of any or all Participants
outstanding under the Plan to become immediately exercisable (subject to any
limitations the Board of Directors may impose) in order to permit Shares
issuable under such Options to be tendered to such bid.

 

(b)                                 There shall be no automatic vesting of
unvested Options in the event of a Change of Control (as defined below) unless
otherwise agreed in an employment or consulting agreement; however, the Board
may, in its sole discretion, by resolution permit any or all unvested Options
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 agree 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 Options 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 Options 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 Options
shall not vest).

 

3.2          Prohibition on Transfer of Options

 

Options
are personal to each Eligible Person and its Permitted Assigns.  No Eligible Person may deal with any Options
or any interest in them or Transfer any Options now or hereafter held by the
Eligible Person except in accordance with the Plan.  A purported Transfer of any Options in
violation of the Plan will not 

 

11

 

be
valid and the Corporation shall not issue any Share upon the attempted exercise
of improperly Transferred Option.

 

3.3          Prohibition on Transfer of Shares

 

No
Participant will, upon exercise of an Option, deal with any Share or 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.

 

3.4          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 Options
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 Options theretofore granted under the
Plan, and in the exercise price of those unexercised Options; 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.

 

3.5          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.

 

3.6          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 Option Agreement and to establish the rules and
regulations relating to the Plan and to make all determinations necessary or
advisable for administration of the Plan. 
The Board shall have the authority to amend the Plan as follows without
seeking shareholder approval:

 

12

 

(i)                                   other than for Options held by Insiders, a
reduction in the Share Option Price with respect to any Option other than where
such reduction would result in the Share Option Price being lower than the
price determined for such Option pursuant to section 2.3 hereof at the time
such Option was granted;

 

(ii)                                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;

 

(iii)                             an extension of the term of Options beyond
the Expiry Date, other than for Options held by Insiders;

 

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

 

(v)                               an amendment to the transferability or
assignability of an Option including for estate settlement purposes;

 

(vi)                            the addition of awards, other than Options,
to be made under the Plan;

 

(vii)                         changing the terms of an Option including,
without limitation, any vesting provisions (other than certain terms for
Options held by Insiders, as set out in section 3.6(c) below);

 

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

 

(ix)                              to correct or rectify any ambiguity,
defective provision, error or omission in the Plan or an Option Agreement;

 

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

 

(xi)                              to make capital adjustments to the Share
Option Price as provided in section 3.4. hereof; and

 

13

 

(xii)                             to make any other amendment to the Plan or Option 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 Option Agreement as set out in subsection 3.6(a) above
shall be made to the extent that such action would adversely affect the
existing rights of any Optionee under any Option Agreement, without the consent
of the Optionee.

 

(c)                                  Any amendment of the Plan or any Option
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)                                     a reduction in the Share Option Price with
respect to any Option held by an Insider (other than as may result from general
anti-dilution provisions pursuant to section 3.4) or the cancellation of
Options held by an Insider for the purpose of reissuing them to the Insider
Optionee at a lower Share Option Price; and

 

(ii)                                  the extension of the expiry date of Options
held by an Insider, other than in accordance with section 2.2(a) hereof.

 

(d)                                 If this Plan is terminated  pursuant to section 3.6(a) hereof or
otherwise, the provisions 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 Options 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 Options 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 Options may be exercised pursuant to the
amended terms prior thereto.

 

3.7          Compliance with Legislation

 

(a)                                  The Board may postpone or adjust any exercise
of any Option 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 3.7(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 

 

14

 

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 3.7(b) shall bear one or more legends
making appropriate reference to the restrictions imposed under applicable
securities laws with regard to such Shares.

 

3.8          Effective Date

 

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

 

3.9          Prior Plan

 

The
Plan shall entirely replace and supersede prior share option plans, if any,
enacted by the Board of Directors of the Corporation.

 

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 Option issued to a Participant and the number of Options
outstanding.

 

15

 

SECOND AMENDED AND RESTATED
SHARE OPTION 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 Option 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.

 

4.               Share certificates representing the number of
Shares in respect of which the Option has been exercised will be issued only
upon payment in full of the relevant exercise price.  These share certificates will be held for
safekeeping by the Secretary of the Corporation, unless the Participant directs
the Secretary otherwise.

 

16

 

Schedule “A” to Option Plan

 

PERSONAL AND CONFIDENTIAL

 

·, 200·

 

<<Name and Address of Optionee>>

 

Dear <<First Name>>

 

The
stock option plan (the “Option Plan”) of JumpTV Inc. (the “Corporation”)
permits the board of directors (the “Board”) of the Corporation to grant
options 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 grant you, as of <<Date of
Issue>> options (the “Options”) to purchase commons
shares  (the “Shares”) of the
Corporation.  This option agreement (the “Option
Agreement”) is granted on the basis set out in this letter, and is subject to
the Option Plan.  This Option Agreement
and the Option Plan are referred to collectively as the “Option Documents”.  All capitalized terms not otherwise defined
are to bear the meaning attributed to them in the Option Plan, a copy of which
is attached hereto as Schedule “A”.

 

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

 

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

 

Your
Options will vest and are exercisable in the following manner:

 

	
   

  	
   

  	
  Percentage of Options Exercisable

  	
   

  	
   

  
	
  Vesting Date

  	
   

  	
  On or After Vesting Date

  	
   

  	
  Expiry Date

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·

  	
   

  	
  ·

  	
   

  	
  ·

  

 

Subject
to earlier expiration in accordance with the Option Documents, your rights to
purchase Shares pursuant to this option 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
Options may be exercised in whole or in part in respect of vested Options at
any time prior to expiry of the relevant Options.  The Options may not be exercised in amount
less than 100 Shares in the case of any one exercise unless that exercise would
entirely exhaust the Options.

 

You
may exercise your vested Options at any time before the Expiry Date, or 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
Share Option Price of the number of Shares being purchased.  No fractional Shares will be issued upon
exercise of Options, 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.

 

17

 

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

 

This
Option 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 Option
Plan.  As well, restrictions apply in
connection with cessation of engagement. 
Complete details of these restrictions are set out in the Option Plan.

 

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

 

Please
acknowledge your acceptance of this Option 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 Option 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)

  	
   

  	
   

  
				

 

18

 

Schedule
B

 

OPTION
EXERCISE NOTICE

 

To:       JumpTV Inc. (the “Corporation”)

 

The
undersigned hereby irrevocably elects to exercise Options 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)

  	
   

  	
  Option
  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 Option
  Holder)

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
  )

  	
   

  	
  (Name of Option Holder –
  please print)

  

 

19

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