Document:

Exhibit 10.28

 

JUMPTV INC.

 

SECOND AMENDED AND RESTATED STOCK OPTION PLAN

 

May 2007,

as amended May 13, 2009

 

 

TABLE OF CONTENTS

 

	
  JUMPTV INC.

  	
  2 

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1:
  PURPOSE AND INTERPRETATION

  	
  2 

  
	
   

  	
   

  	
   

  
	
  1.1.

  	
  PLAN

  	
  2 

  
	
  1.2.

  	
  PURPOSE

  	
  2 

  
	
  1.3.

  	
  ADMINISTRATION

  	
  2 

  
	
  1.4.

  	
  INTERPRETATION

  	
  2

  
	
  1.5.

  	
  NUMBERS

  	
  5

  
	
  1.6.

  	
  LAPSED
  OPTIONS

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2:
  STOCK OPTION PLAN

  	
  6

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  GRANTS

  	
  6

  
	
  2.2.

  	
  EXERCISE
  OF OPTIONS

  	
  6

  
	
  2.3

  	
  SHARE
  OPTION PRICE

  	
  7

  
	
  2.4

  	
  GRANT
  TO PARTICIPANT’S RRSP OR RRIF

  	
  7

  
	
  2.5

  	
  TERMINATION,
  RETIREMENT, DEATH OR DEPARTURE

  	
  7

  
	
  2.6

  	
  OPTIONS
  AGREEMENTS

  	
  8

  
	
  2.7

  	
  PAYMENT
  OF OPTION PRICE

  	
  8

  
	
  2.8

  	
  CASHLESS
  EXERCISE

  	
  8

  
	
  2.9

  	
  WITHHOLDING

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3:
  GENERAL

  	
  9

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  RIGHT
  TO EXERCISE OPTIONS IN CONNECTION WITH A PROPOSED TRANSACTION

  	
  9 

  
	
  3.2

  	
  PROHIBITION
  ON TRANSFER OF OPTIONS

  	
  10

  
	
  3.3

  	
  PROHIBITION
  ON TRANSFER OF SHARES

  	
  10

  
	
  3.4

  	
  CAPITAL
  ADJUSTMENTS

  	
  10

  
	
  3.5

  	
  NON-EXCLUSIVITY

  	
  10

  
	
  3.6

  	
  AMENDMENT
  AND TERMINATION

  	
  10

  
	
  3.7

  	
  COMPLIANCE
  WITH LEGISLATION

  	
  11

  
	
  3.8

  	
  EFFECTIVE
  DATE

  	
  12

  
	
  3.9

  	
  PRIOR
  PLAN

  	
  12

  
	
  3.10

  	
  RECORD
  KEEPING

  	
  12

  
	
   

  	
   

  	
   

  
	
  SECOND AMENDED
  AND RESTATED STOCK OPTION PLAN: REGULATIONS

  	
  13

  
	
   

  	
   

  	
   

  
	
  SCHEDULE “A” TO
  OPTION PLAN

  	
  14

  

 

 

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);

 

2

 

(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 that definition solely by virtue of being a director or senior officer
of a Subsidiary; and

 

3

 

(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);

 

(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 

 

4

 

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.

 

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.

 

5

 

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.

 

(c)                                  With respect to any Options granted to a “covered
individual”, as defined in Section 162(m)(3) of the United States Internal Revenue Cod of 1986, as amended (the “Code”), the award shall be made by a committee of the Board
that constitutes a “compensation committee” within the meaning of Section 162(m).

 

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.

 

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.

 

6

 

(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 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. 
In all instances, the Share Option Price shall not be less than fair
market value, as determined under Section 409A of the Code.

 

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.

 

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 

 

7

 

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.

 

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 

 

8

 

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.

 

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).

 

9

 

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 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 may, at any time and from time to time,
amend, suspend or terminate the Plan without shareholder approval, provided
that no such amendment, suspension or termination may be made without obtaining
any required approval of any regulatory authority or stock exchange or the consent
or deemed consent of an Optionee where such amendment, suspension or
termination materially prejudices the rights of the Optionee.

 

(b)         Notwithstanding the provisions of Section 3.6(a),
the Board may not, without the approval of the shareholders of the Corporation,
make amendments to the Plan for any of the following purposes:

 

(i)        to increase the maximum number of Shares
that may be issued pursuant to Options granted under the Plan;

(ii)     to reduce the Exercise Price of Options for the
benefit of an Insider;

(iii)  to extend the Expiry Date of Options for
the benefit of an Insider; and

(iv)   to amend the provisions of this Section 3.6(b).

 

(c)          Subject to Section 3.6(b), the Board may, at any
time and from time to time, without the approval of the shareholders of the
Corporation, amend any term of any outstanding Option, provided that:

 

10

 

(i)                                    any required approval of any regulatory
authority or stock exchange is obtained;

 

(ii)                                 the Board would have had the authority to
initially grant the option under the terms so amended; and

 

(iii)                              the consent or deemed consent of the
Optionee is obtained if the amendment would materially prejudice the rights of
the Optionee under the Option.

 

3.7          Restrictions
on Awards

 

The
maximum number of Common Shares that:

 

(a)          may be reserved for issuance to Insiders pursuant to
the Plan and any other previously established or proposed Share Compensation
Arrangement is 10% of the number of Common Shares outstanding;

 

(b)         may be issued to Insiders under the Plan and any other
previously established or proposed Share Compensation Arrangement within a
one-year period is 10% of the number of Common Shares outstanding; and

 

(c)          may be issued to any one Insider under the Plan and
any other previously established or proposed Share Compensation Arrangement
within a one-year period is 5% of the number of Common Shares outstanding.

 

If
a proposed Share Compensation Arrangement, together with all of the Corporation’s
other previously established or proposed Share Compensation Arrangements, could
result, at any time, in the number of shares reserved for issuance pursuant to
stock options granted to Insiders exceeding 10% of the outstanding issue, the
Share Compensation Arrangement must be approved by a majority of the votes cast
at the shareholders’ meeting other than votes attaching to securities
beneficially owned by Insiders.

 

For
the purposes of this Section 3.7, holders of non-voting and subordinate
voting shares must be entitled to vote with the holders of any class of shares
of the Corporation which otherwise carry greater voting rights, on a basis
proportionate to their respective residual equity interests in the Corporation.

 

3.8          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 3.8(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 

 

11

 

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        Prior Plan

 

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

 

3.11        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.

 

12

 

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.

 

13

 

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:

 

	
  Vesting Date

  	
  Percentage
  of Options Exercisable

  	
  Expiry
  Date

  
	
   

  	
  On
  or After Vesting 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.

 

14

 

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)

  	
   

  	
   

  

 

15

 

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)

  

 

16Exhibit 10.29

 

JUMPTV INC.

 

2006 STOCK APPRECIATION RIGHTS PLAN

 

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

and May 13, 2009

 

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 (x) 4,150,000
and (y) 5% of the issued and outstanding Common Shares.  The Common Shares reserved for issuance upon
the exercise of Rights that (i) expire unexercised; (ii) 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); (iii) are exercised for Common Shares issued from
Treasury or purchased by the Corporation in the secondary market pursuant to a
Securities Settlement Request (as defined below); or (iv) 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.

 

(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.

 

2

 

“Market Price” means the volume weighted
average trading price of the Common Shares of the Corporation on the Toronto
Stock Exchange (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.  In all
instances, the Market Price shall be determined in accordance with Section 409A
of the  United States Internal Revenue Code of 1986,
as amended (the “Code”).

 

(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 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 fulfill 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.  

 

3

 

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 Securities
Settlement Request and/or a Treasury Share Settlement Alternative Request).

 

With regard to any Rights granted to a “covered individual”, as defined
in Section 162(m)(3) of the Code, the award shall be made by a
committee of the Board that constitutes a “compensation committee” within the
meaning of Section 162(m).

 

(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) 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 

 

4

 

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 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.

 

5

 

(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).

 

(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.

 

6

 

(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 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.

 

7

 

(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

 

(a)   The Board
may, at any time and from time to time, amend, suspend or terminate the Plan
without shareholder approval, provided that no such amendment, suspension or
termination may be made without obtaining any required approval of any
regulatory authority or stock exchange or the consent or deemed consent of a
Rightsholder where, in the case of a Rightsholder such amendment, suspension or
termination materially prejudices the rights of the Rightsholder.

 

(b)   Notwithstanding
the provisions of Section 5(a), the Board may not, without the approval of
the shareholders of the Corporation, make amendments to the Plan for any of the
following purposes:

 

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

 

(ii)                   to reduce the Exercise Price of Rights for the benefit of an Insider;

 

(iii)                  to extend the period for which the Rights are exercisable in respect of
Rights for the benefit of an Insider (as defined in Section 6); and

 

(iv)                  to amend the provisions of this Section 5(b).

 

(c)   The Board
may, at any time and from time to time, without the approval of the
shareholders of the Corporation, amend any term of any outstanding Right,
provided that:

 

(i)                    any required approval of any regulatory authority or stock exchange is
obtained;

 

8

 

(ii)                   if the amendments would reduce the Exercise Price or extend the period for
which the Rights are exercisable in respect of Rights granted to Insiders (as
defined in Section 6), approval of the shareholders of the Corporation
must be obtained;

 

(iii)                  the Board would have had the authority to initially grant the Rights under
the terms so amended; and

 

(iv)                  the consent or deemed consent of the Rightsholder is obtained if the
amendment would materially prejudice the rights of the Rightsholder.

 

6.             Restrictions
on Awards

 

The maximum number of Common
Shares that:

 

(a)   may be
reserved for issuance to Insiders pursuant to the Plan and any other previously
established or proposed Share Compensation Arrangement is 10% of the number of
Common Shares outstanding;

 

(b)   may be
issued to Insiders under the Plan and any other previously established or
proposed Share Compensation Arrangement within a one-year period is 10% of the
number of Common Shares outstanding; and

 

(c)   may be
issued to any one Insider under the Plan and any other previously established
or proposed Share Compensation Arrangement within a one-year period is 5% of
the number of Common Shares outstanding.

 

If a proposed Share Compensation
Arrangement, together with all of the Corporation’s other previously
established or proposed Share Compensation Arrangements, could result, at any
time, in the number of shares reserved for issuance pursuant to stock options
granted to Insiders exceeding 10% of the outstanding issue, the Share
Compensation Arrangement must be approved by a majority of the votes cast at
the shareholders’ meeting other than votes attaching to securities beneficially
owned by Insiders.

 

For the purposes of this Section 6,
holders of non-voting and subordinate voting shares must be entitled to vote
with the holders of any class of shares of the Corporation which otherwise
carry greater voting rights, on a basis proportionate to their respective
residual equity interests in the Corporation.

 

For the purposes of this Section 6,
the following terms shall have the following meanings:

 

(a)   “Insider” has the meaning given to that term in the Securities Act (Ontario) and also includes associates and
affiliates of the insider, but does not include directors or senior officers of
a subsidiary or affiliate of the Corporation unless such director or senior
officer:

 

(i)                    in the ordinary course receives or has access to information as material
facts or material changes concerning the Corporation before the material facts
or material changes are generally disclosed;

 

9

 

(ii)                   is a director or senior officer of a “major subsidiary” of the Corporation
(where “major subsidiary” has the meaning given to that term in National
Instrument 55-101 — Insider Reporting
Exemptions); or

 

(iii)                  is an insider of the Corporation in a capacity other than as a director or
senior officer of the subsidiary or affiliate.

 

For the purpose of this
definition, the terms “affiliate”, “associate” and “subsidiary” have the
meanings given to them, respectively, in the Securities
Act (Ontario).

 

“Share
Compensation Agreement” means any stock option, stock plan, employee
stock purchase plan or any other compensation or incentive mechanism involving
the issuance or potential issuance of Common Shares, including a share purchase
from treasury which is financially assisted by the Corporation by way of a
loan, guarantee or otherwise.

 

7.             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 Settlement 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.

 

8.             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 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.

 

10

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