Document:

Exhibit 10.6

    
      
        EXHIBIT
          10.6

      

       

      
 

      EMPLOYMENT
        AGREEMENT

       

      Employment
        Agreement dated December 5,
        2005
        (the “Effective
        Date”)
        between
        Canadian Satellite Radio Inc. (the “Corporation”)
        and
        John I. Bitove (the “Executive”).

       

      RECITALS

       

      
        	(a)    
                 	
                The
                  Executive has been employed by the Corporation since June 4, 2003,
                  in the
                  position of Chief Executive
                  Officer;

              

      

       

      
        	(b)    
                 	
                Canadian
                  Satellite Radio Holdings Inc. (“CSR
                  Holdings”),
                  the parent of the Corporation, is conducting a public offering
                  of
                  subordinate voting shares of CSR Holdings (the “IPO”);
                  

              

      

       

      
        	(c)    
                 	
                As
                  a term of the IPO the Corporation and the Executive are required
                  to enter
                  into and be bound by the terms of this
                  Agreement;

              

      

       

      
        	(d)    
                 	
                As
                  a whole, this Agreement contains terms and conditions which are
                  more
                  favourable to the Executive than those presently applicable to
                  him.

              

      

       

      In
        consideration of the mutual covenants and agreements contained in this Agreement
        (the receipt and adequacy of which are acknowledged), the parties agree as
        follows.

       

       

      ARTICLE 1-
        DEFINITIONS

       

      Section 1.1  Defined
        Terms.

       

      As
        used
        in this Agreement, the following terms have the following meanings:

       

      “Business”
        means
        (i) the
        business of providing subscription based satellite radio
        entertainment;
        and
        (ii) any other principle line business conducted by the Corporation after
        the
        Effective Date up to the termination of the Executive’s employment.

       

      “Cause”
        means:

       

      
        	(a)  	
                a
                  breach by the Executive of any of the restrictions or covenants
                  contained
                  in Articles 5, 6 and 7; 

              

      

       

      
        	(b)  	
                any
                  material breach by the Executive of his obligations under any code
                  of
                  ethics, any other code of business conduct or any lawful policies
                  or
                  procedures of the Corporation; or

              

      

       

       

      
        
          
          

        

        
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        	(c)  	
                any
                  act or omission of the Executive which would in law permit the
                  Corporation, without notice or payment in lieu of notice, to terminate
                  the
                  employment of the Executive.

              

      

       

      “Change
        of Control”
        means:

       

      
        	(a)  	
                any
                  sale, reorganization, amalgamation, merger or other transaction
                  as a
                  result of which an Entity or group of Entities acting jointly or
                  in
                  concert (whether by means of a shareholder agreement or otherwise)
                  or
                  Entities associated or affiliated with any such Entity or group
                  within the
                  meaning of the Business
                  Corporations Act
                  (Ontario), other than Canadian Satellite Radio Investments Inc.,
                  the
                  Executive and his associates, becomes the owner, legal or beneficial,
                  directly or indirectly, of fifty
                  (50%)
                  percent or more of the shares of the Corporation or exercises control
                  or
                  direction over fifty (50%) percent
                  or more of the shares of the Corporation; (other than solely involving
                  the
                  Corporation and one or more of its affiliates)
                  or

              

      

       

       

      
        
          
          

        

        
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        	(b)  	
                a
                  sale, lease or other disposition of all or substantially all of
                  the
                  property or assets of the Corporation other than to an affiliate
                  which
                  assumes all of the obligations of the Corporation in respect of
                  the
                  Executive including the assumption of this Agreement;
                  or

              

      

       

      
        	(c)  	
                a
                  change in the composition of the Corporation’s Board of Directors which
                  occurs at a single meeting of the shareholders of the Corporation
                  or upon
                  the execution of a shareholder’s resolution, such that individuals who are
                  independent members of the Board of Directors immediately prior
                  to such
                  meeting or resolution cease to constitute a majority of the independent
                  members of the Board of Directors, without the Board of Directors,
                  as
                  constituted immediately prior to such meeting or resolution, having
                  approved of such change.

              

      

       

      “Confidential
        Information” means
        all
        information owned, possessed or controlled by the Corporation and/or its
        affiliates including, without limitation, all information related to
        developments, inventions, enhancements, financial, scientific, technical,
        manufacturing, process know-how and marketing information and all names of
        or
        lists of customers and suppliers howsoever received by the Executive from,
        through or relating to the Corporation and/or its affiliates and in whatever
        form (whether oral, written, machine readable or otherwise), which pertains
        to
        the Corporation and/or its affiliates; provided, however, that the phrase
        “Confidential Information” shall not include information which:

       

      
        	(a)  	
                was
                  in the public domain prior to the date of receipt by the
                  Executive;

              

      

       

      
        	(b)  	
                becomes
                  part of the public domain by publication or otherwise, not due
                  to any
                  unauthorized act or omission of the Executive;
                  or

              

      

       

      
        	(c)  	
                the
                  Executive is required by law to disclose, provided that, unless
                  prohibited
                  by law, the Executive first notifies the Board
                  of Directors (as herein defined)
                  at
                  the first reasonable opportunity that he is required to disclose
                  such
                  Confidential Information.

              

      

       

      “Customer”
        means
        any
        Entity who has (i) purchased or licensed from the Corporation (with
        the
        Executive’s knowledge) any product produced or service supplied, sold, licensed
        or distributed by the Corporation or, (ii) supplied to the Corporation (with
        the
        Executive’s knowledge) any product to be produced, sold, licensed or distributed
        by the Corporation; provided that after the termination of the Executive’s
        employment for any reason, Customers shall only include any Entity who was
        a
        Customer during the twelve (12) months preceding the date of the termination
        of
        the Executive’s employment.

       

      “Development”
means
        any discovery, invention, design, improvement, concept, specification, creation,
        development, treatment, computer program, method, process, apparatus, specimen,
        formula, formulation, product, hardware or firmware, any drawing, report,
        memorandum, article, letter, notebook and any other work of authorship and
        ideas
        (whether or not patentable or copyrightable) and legally recognized proprietary
        rights (including, but not limited to, patents, copyrights, trademarks,
        topographies, know-how and trade secrets), and all records and copies of
        records
        relating to the foregoing, that:

       

      
        	(a)  	
                result
                  or derive from the Executive’s employment or from the Executive’s
                  knowledge or use of Confidential
                  Information;

              

      

       

      
        	(b)  	
                are
                  conceived or made by the Executive (individually or in collaboration
                  with
                  others) in the course of his
                  employment;

              

      

       

      
        	(c)  	
                result
                  from or derive from the use or application of the resources of
                  the
                  Corporation; or 

              

      

       

      
        	(d)  	
                relate
                  to the business operations of actual or demonstrably anticipated
                  research
                  and development by the Corporation.

              

      

       

      "Disability"
        means
        the Executive’s inability to substantially fulfil his duties on behalf of the
        Corporation for a continuous period of six
        (6)
        months
        or more or the Executive’s inability to substantially fulfil his duties on
        behalf of the Corporation for an aggregate period of six
        (6)
        months
        or more during any consecutive twelve
        (12)
        month
        period, which the parties agree would cause undue hardship to the Corporation
        which cannot be accommodated; and if there is any disagreement between the
        Corporation and the Executive as to the Executive’s Disability or as to the date
        any such Disability began or ended, the same shall be determined by a physician
        mutually acceptable to the Corporation and the Executive whose determination
        shall be conclusive evidence of any such Disability and of the date any such
        Disability began or ended.

       

       

      
        
          
          

        

        
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      “Entity”
        means
        a
        natural person, partnership, limited liability partnership, corporation,
        joint
        stock company, trust, unincorporated association, joint venture or other
        entity
        or governmental entity, and pronouns have a similarly extended
        meaning.

       

      “Good
        Reason”
means
        constructive dismissal in accordance with the common law, provided, however
        that
        the following shall not constitute Good Reason for the purposes of this
        Agreement:

       

      
        	(a)  	
                any
                  change or series of changes in the responsibilities, authority,
                  status or
                  reporting relationship of the Executive with the Corporation during
                  the
                  first eighteen (18) months from the Effective Date;
                  or

              

      

       

      
        	(b)  	
                a
                  reduction by the Corporation in the Executive’s annual Base Salary which
                  is part of a general reduction in the Base Salary of all or substantially
                  all of the senior executives of the Corporation which:
                  

              

      

       

      
        	(i)  	
                occurs
                  during the first eighteen (18) months from the Effective Date;
                  

              

      

       

      
        	(ii)  	
                affects
                  the Executive in substantially the same manner as the other senior
                  executives who are also affected by such general reduction;
                  and

              

      

       

      
        	(iii)  	
                does
                  not constitute more than fifteen percent (15%) of his Base Salary;
                  or

              

      

       

      
        	(c)  	
                any
                  requirement by the Corporation that the Executive’s principal office be
                  relocated to any major urban centre in Canada, provided the Corporation
                  reimburses the Executive for all reasonable relocation
                  expenses.

              

      

       

      “Intellectual
        Property Rights”
        means
        all worldwide intellectual and industrial property rights in connection with
        the
        Developments including, without limitation:

       

      
        	(i)  	
                patents,
                  inventions, discoveries and
                  improvements;

              

      

       

      
        	(ii)  	
                ideas,
                  whether patentable or not;

              

      

       

       

      
        
          
          

        

        
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        	(iii)  	
                copyrights;
                  

              

      

       

      
        	(iv)  	
                trademarks;

              

      

       

      
        	(v)  	
                trade
                  secrets; 

              

      

       

      
        	(vi)  	
                industrial
                  and artistic designs; and

              

      

       

      
        	(vii)  	
                proprietary,
                  possessory and ownership rights and interests of all kinds
                  whatsoever;

              

      

       

      including,
        without limitation, the right to apply for registration or protection of
        any of
        the foregoing.

       

      “Prospective
        Customers”
        means
        (i) any Entity solicited by the Executive on behalf of the Corporation for
        any
        purpose relating to the Business, and (ii) any Entity solicited by the
        Corporation with the Executive's knowledge for any purpose relating to the
        Business; provided that after termination of the Executive’s employment for any
        reason, Prospective Customers shall only include any Entity who was a
        Prospective Customer during the twelve (12) months preceding the date of
        the
        termination of the Executive’s employment.

       

      “Territory”
        means
        Canada.

       

      ARTICLE 2
-
        EMPLOYMENT

       

      Section 2.1  Position

       

      On
        the
        terms and subject to the conditions hereinafter contained, the Executive
        will
        continue in the employ of the Corporation as its Chief Executive
        Officer.

       

      Section 2.2  Duties
        of Employment

       

      The
        Executive shall report to and be subject to the general direction of the
        Board
        of Directors of the Corporation (the “Board
        of Directors”)
        and
        shall have such duties and responsibilities which will be commensurate with
        his
        position as are delegated to him by the Board of Directors.

       

       

      
        
          
          

        

        
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      Section 2.3  Full
        and Faithful Service

       

      The
        Executive shall well and faithfully serve the Corporation and use his best
        efforts to promote the interests of the Corporation and during the term of
        this
        Agreement, the Executive shall devote his full time and energy to the
        Corporation and shall not, directly or indirectly, render services to any
        Entity
        other than services with regard to charitable or community service
        organizations, or any other organizations that are approved by the Corporation,
        provided such activities do not interfere with Executive’s duties hereunder. The
        Executive further acknowledges that he will comply with (i) the lawful policies
        and procedures established by the Corporation, from time to time, including
        any
        code of ethics or business conduct adopted by the Corporation (including
        any
        future revisions of such policies, procedures or other codes of business
        conduct), and (ii) all applicable laws, rules and regulations, and all
        requirements of all applicable regulatory, self-regulatory and administrative
        bodies.

       

      Section 2.4  Term

       

      This
        Agreement shall be effective from the Effective Date and shall continue in
        effect until the date the Agreement is terminated in accordance with Article
        4
        hereof.

       

       

      ARTICLE 3 -
        REMUNERATION AND BENEFITS

       

      Section 3.1  Salary

       

      The
        Corporation shall pay to the Executive a salary (the “Base
        Salary”)
        at the
        rate of $250,000
        per
        annum, payable to the Executive in accordance with the payroll practices
        of the
        Corporation for its senior management as are in effect from time to time.
        The
        Executive’s Base Salary may be increased by the
        Board
        of Directors
        from
        time to time and once increased shall thereafter be the Base Salary
        hereunder.

       

      Section 3.2  Bonus
        

       

      The
        Executive shall be eligible to participate in the Corporation’s bonus plan for
        senior management (the “Bonus
        Plan”)
        in
        accordance with the terms and conditions of such plan. Such participation
        shall
        be at a level such that the Executive shall have the potential to receive,
        at
        target, a bonus of up to 75% of his Base Salary with a maximum bonus of up
        to
        100% of his Base Salary based on achievement of the goals established pursuant
        to the Bonus Plan.

       

      Section 3.3  Stock
        Options 

       

      The
        Executive shall, subject to the terms and conditions of the stock option
        plan of
        the Corporation adopted in 2005 (as same may be amended from time to time),
        participate in such plan as determined by the Board of Directors of the
        Corporation.

       

      Section 3.4  Health
        and Insurance Benefits 

       

      The
        Executive shall be eligible to participate in such health, medical, dental,
        disability and life insurance coverage as the Corporation has in effect for
        its
        senior management from time to time.

       

      Section 3.5  Expenses

       

      The
        Corporation will pay or reimburse the Executive for all reasonable travelling
        and other out-of-pocket expenses incurred by the Executive in connection
        with
        his employment hereunder in accordance with the policies of the Corporation
        in
        effect from time to time.

       

       

      
        
          
          

        

        
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      Section 3.6  Vacation 

       

      During
        each full calendar year of this Agreement, the Executive will be entitled
        to
        four (4)
        weeks
        vacation with pay to be taken at a time(s) mutually agreeable to the Executive
        and the Corporation. The Executive will be allowed to carry forward any unused
        vacation time into the next year to the extent same is permitted by the policies
        of the Corporation or by the Board of Directors.

       

       

      ARTICLE 4 -
        TERMINATION

       

      Section 4.1  Termination
        by the Corporation

       

      This
        Agreement and the employment contemplated hereunder may (and in the case
        of
Section 4.1(d),
        shall)
        be terminated, at any time, in the following manner and in the following
        circumstances:

       

      
        	(a)  	
                by
                  the Executive, by providing four
                  (4) weeks
                  written notice of resignation to the Corporation (the “Notice
                  of Resignation Period”),
                  in which case, subject to Section 4.1(b),
                  this Agreement and the Executive’s employment shall terminate at the end
                  of the Notice of Resignation Period; 

              

      

       

      
        	(b)  	
                during
                  the Notice of Resignation Period, the Corporation may waive such
                  Notice of
                  Resignation Period, in whole or in part, in which case this Agreement
                  and
                  the Executive’s employment shall terminate immediately upon receipt by the
                  Executive of a written notice from the
                  Corporation;

              

      

       

      
        	(c)  	
                by
                  the Corporation, for Cause, in which case this Agreement and the
                  Executive’s employment shall terminate immediately upon receipt of a
                  written notice by the Executive from the Corporation setting out
                  the cause
                  for termination;

              

      

       

      
        	(d)  	
                automatically
                  without further notice, upon the death of the Executive, in which
                  case the
                  Executive’s employment and this Agreement shall terminate on the date of
                  the Executive’s death;

              

      

       

      
        	(e)  	
                by
                  the Corporation, in the event of a material violation of this Agreement
                  (other than one constituting Cause) by the Executive where such
                  violation
                  has not been cured within ten
                  (10)
                  working days following receipt of written notice thereof by the
                  Executive
                  from the Corporation. This Agreement and the Executive’s employment shall
                  terminate ten
                  (10)
                  days following receipt by the Executive of written notice from
                  the
                  Corporation of a material violation of this Agreement (other than
                  a
                  material violation that constitutes Cause) if such material violation
                  of
                  this Agreement has not been cured to the satisfaction of the Corporation
                  by the Executive;

              

      

       

       

       

      
        
          
          

        

        
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        	(f)  	
                by
                  the Corporation, without Cause and other than for the circumstances
                  in
                  Section 4.1(b),
                  (d),
                  (e)
                  or
                  (h),
                  in which case this Agreement and the Executive’s employment shall
                  terminate immediately upon receipt by the Executive of a written
                  notice of
                  termination from the Corporation;

              

      

       

      
        	(g)  	
                by
                  the Executive, within thirty (30) days of the occurrence of any
                  event
                  constituting Good Reason, in which case this Agreement and the
                  Executive’s
                  employment shall terminate immediately upon receipt by the Executive
                  of a
                  written notice of termination by the Executive;
                  or

              

      

       

      
        	(h)  	
                by
                  the Corporation, in the event of frustration of this Agreement
                  due to the
                  Executive’s Disability, in which case this Agreement and the Executive’s
                  employment shall terminate immediately upon receipt of a written
                  notice by
                  the Executive from the Corporation.

              

      

       

      Section 4.2  Payment
        Upon Termination

       

      In
        the
        event the Executive’s employment is terminated pursuant to Section 4.1,
        the
        Executive shall only be entitled to the following compensation and benefits
        upon
        termination:

       

      
        	(a)  	
                Should
                  this Agreement be terminated pursuant to Section 4.1(a)
                  or
                  (b),
                  the Executive shall only be entitled to (i) payment of the Executive’s
                  Base Salary for the period from the date of termination by the
                  Corporation
                  to the end of the Notice of Resignation Period; (ii) continued
                  health and
                  welfare insurance benefits coverage in which the Executive was
                  participating at the date of termination by the Corporation to
                  the end of
                  the Notice of Resignation Period; (iii) the value of the pro-rated
                  vacation leave with pay for that portion of the calendar year up
                  to the
                  end of the Notice of Resignation Period and any vacation from previous
                  years carried forward in accordance with Section 3.6
                  of
                  this Agreement, to the extent the Executive’s accrued vacation entitlement
                  has not been used by him at the time of termination; (iv) any accrued
                  but
                  unpaid business expenses at the date of termination by the Corporation
                  required to be reimbursed under Section 3.5 of this Agreement;
                  and (v) any
                  entitlements in accordance with the terms of any stock option plans
                  in
                  which he participated at the date of termination.
                  

              

      

       

       

      
        
          
          

        

        
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        	(b)  	
                Should
                  this Agreement be terminated pursuant to Section 4.1(c)
                  or
                  (e),
                  the Executive shall only be entitled to (i) payment of the
                  Executive's Base Salary earned up to the date of termination; (ii)
                  the
                  value of the pro-rated vacation leave with pay for that portion
                  of the
                  calendar year in which the employment of the Executive hereunder
                  is
                  terminated that the Executive was actively employed and any vacation
                  from
                  previous years carried forward in accordance with Section 3.6
                  of
                  this Agreement, to the extent the Executive’s accrued vacation entitlement
                  has not been used by him at the time of termination; and (iii) any
                  accrued but unpaid business expenses at the date of termination
                  required
                  to be reimbursed under Section 3.5
                  of
                  this Agreement.

              

      

       

      
        	(c)  	
                Should
                  this Agreement be terminated pursuant to Section 4.1(d)
                  or
                  Section 4.1(h),
                  the Corporation’s only obligations shall be
                  to:

              

      

       

      
        	(i)  	
                pay
                  to the Executive (w) any accrued but unpaid Base Salary for services
                  rendered to the date of termination; (x) a bonus for that portion
                  of the
                  year in which the Executive was actively employed; (y) any accrued
                  but
                  unpaid expenses at the date of termination required to be reimbursed
                  under
                  Section 3.5
                  of
                  this Agreement; and (z) the value of the pro-rated vacation leave
                  with pay
                  for that portion of the calendar year in which the employment of
                  the
                  Executive hereunder is terminated that the Executive was actively
                  employed
                  and any vacation from previous years carried forward in accordance
                  with
                  Section 3.6
                  of
                  this Agreement, to the extent the Executive’s accrued vacation entitlement
                  has not been used by him at the time of termination. The amount
                  of the
                  bonus payable under this Section 4.2(c)(i)
                  shall be calculated as follows: the product of (s) the average
                  bonus paid
                  to the Executive for the three
                  (3)
                  fiscal years prior to the fiscal year in which his employment is
                  terminated divided by twelve (12), and (t) the number of months
                  the
                  Executive was actively employed in the fiscal year in which his
                  employment
                  is terminated. In the event the Executive’s employment is terminated in
                  the first twelve (12) months following the Effective Date, the
                  value of
                  such bonus shall be calculated as follows: the product of (s) the
                  target
                  bonus (75% of Base Salary) that the Executive would have been entitled
                  to
                  receive in the year his employment was terminated, divided by twelve,
                  and
                  (t) the number of months the Executive was actively employed in
                  the fiscal
                  year in which his employment is
                  terminated;

              

      

       

      
        	(ii)  	
                pay
                  to the Executive an amount equal to six
                  (6) months of his Base Salary as at the date of termination, to
                  be paid
                  either by lump sum within thirty
                  days of the date of termination or by way of salary continuance
                  on the
                  Corporation’s regular pay day, and in accordance with its payroll
                  practices at the date of termination, as is determined by the
                  Corporation; 

              

      

       

       

      
        
          
          

        

        
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        	(iii)  	
                pay
                  to the Executive an amount in lieu of the value of any annual bonus
                  the
                  Executive would have earned had he been employed for the six (6)
                  months
                  immediately following the date of termination. Such amount shall
                  be paid
                  six (6) months following the date of termination and shall be the
                  average
                  bonus (excluding any retention bonus) paid to the Executive for
                  the
                  three
                  (3)
                  fiscal years prior to the fiscal year in which his employment is
                  terminated divided by two (2). In the event the Executive’s employment is
                  terminated in the first twelve (12) months following the Effective
                  Date,
                  the value of such bonus shall be the target bonus (75% of Base
                  Salary)
                  that the Executive would have been entitled to receive in the year
                  his
                  employment was terminated divided by two (2); and 

              

      

       

      
        	(iv)  	
                continue
                  the Executive’s entitlements in accordance with the terms of any stock
                  option plans in which he participated at the date of
                  termination. 

              

      

       

      
        	(d)  	
                Should
                  the Agreement be terminated pursuant to Section 4.1(f)
                  or
                  (g),
                  the Corporation’s only obligations shall be
                  to:

              

      

       

      
        	(i)  	
                pay
                  to the Executive (w) any accrued but unpaid Base Salary for services
                  rendered to the date of termination; (x) a bonus for that portion
                  of the
                  year in which the Executive was actively employed (excluding the
                  Notice
                  Period); (y) any accrued but unpaid expenses at the date of termination
                  required to be reimbursed under Section 3.5
                  of
                  this Agreement; and (z) the value of the pro-rated vacation leave
                  with pay
                  for that portion of the calendar year in which the employment of
                  the
                  Executive hereunder is terminated that the Executive was actively
                  employed
                  and any vacation from previous years carried forward in accordance
                  with
                  Section 3.6
                  of
                  this Agreement, to the extent the Executive’s accrued vacation entitlement
                  has not been used by him at the time of termination. The amount
                  of the
                  bonus payable under this Section 4.2(d)(i)
                  shall be calculated as follows: the product of (s) the average
                  bonus paid
                  to the Executive for the three
                  (3)
                  fiscal years prior to the fiscal year in which his employment is
                  terminated divided by twelve (12), and (t) the number of months
                  the
                  Executive was actively employed (excluding the Notice Period) in
                  the
                  fiscal year in which his employment is terminated. In the event
                  the
                  Executive’s employment is terminated in the first twelve (12) months
                  following the Effective Date, the amount of the bonus payable hereunder
                  shall be calculated as follows: the product of (s) the target bonus
                  (75%
                  of Base Salary) that the Executive would have been entitled to
                  receive in
                  the year his employment was terminated divided by twelve (12),
                  and (t) the
                  number of months the Executive was actively employed (excluding
                  the Notice
                  Period) in the fiscal year in which his employment is
                  terminated;

              

      

       

       

      
        
          
          

        

        
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        	(ii)  	
                pay
                  to the Executive an amount equal to twenty-four
                  (24) months (the “Notice
                  Period”)
                  of his Base Salary as at the date of termination. Payment of the
                  Executive’s Base Salary during the Notice Period shall be made either by
                  lump sum within thirty
                  days of the date of termination or by way of salary continuance
                  on the
                  Corporation’s regular pay day, and in accordance with its payroll
                  practices at the date of termination, as is determined by the
                  Corporation; 

              

      

       

      
        	(iii)  	
                pay
                  to the Executive an amount in lieu of the value of any annual bonus
                  the
                  Executive would have earned had he been employed for the length
                  of the
                  Notice Period. Such amount shall be paid at the end of the Notice
                  Period
                  and shall be calculated as follows: the product of (s) the average
                  bonus
                  (excluding any retention bonus) paid to the Executive for the three
                  (3)
                  fiscal years prior to the fiscal year in which his employment is
                  terminated divided by twelve (12), and (t) the number of months
                  in the
                  Notice Period. In the event the Executive’s employment is terminated in
                  the first twelve (12) months following the Effective Date, the
                  value of
                  such bonus shall be calculated as follows: the product of (s) the
                  target
                  bonus (75% of Base Salary) that the Executive would have been entitled
                  to
                  receive in the year his employment was terminated divided by twelve
                  (12),
                  and (t) the number of months in the Notice
                  Period;

              

      

       

      
        	(iv)  	
                continue
                  the Executive’s participation in the health and welfare benefit plans
                  (excluding short-term disability, long term disability benefits
                  and life
                  insurance coverage which shall cease on the date of termination)
                  in which
                  the Executive was participating at the date of termination, until
                  the
                  earlier of (x) the end of the Notice Period; or (y) the date the
                  Executive becomes covered under the benefit plans of another employer.
                  The
                  Corporation’s obligation hereunder is conditional on the Executive
                  continuing to pay his share of the premiums;
                  and

              

      

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	(v)  	
                continue
                  the Executive’s entitlements in accordance with the terms of any stock
                  option plans in which he participated at the date of
                  termination.

              

      

       

      Section 4.3  Termination
        Upon a Change of Control

       

      In
        lieu
        of and not in addition to the termination payments and benefits provided
        for in
Section 4.2(d)
        herein,
        if within twelve
        (12)
        months
        following a Change of Control, the Executive’s employment with the Corporation
        is terminated for any reason whatsoever other than as a result of a termination
        pursuant to Section 4.1(a),
        (b),
        (c),
        (d),
        (e)
        or
(h),
        the
        Corporation’s only obligations shall be to:

       

      
        	(a)  	
                pay
                  to the Executive (i) any accrued but unpaid Base Salary for services
                  rendered to the date of termination, (ii) a bonus for that portion
                  of the
                  year in which the Executive was actively employed (excluding the
                  Notice
                  Period); (iii) any accrued but unpaid expenses at the date of termination
                  required to be reimbursed under Section 3.5
                  of
                  this Agreement, and (iv) the value of the pro-rated vacation leave
                  with
                  pay for that portion of the calendar year in which the employment
                  of the
                  Executive hereunder is terminated that the Executive was actively
                  employed
                  and any vacation from previous years carried forward in accordance
                  with
                  Section 3.6
                  of
                  this Agreement, to the extent the Executive’s accrued vacation entitlement
                  has not been used by him at the time of termination. The amount
                  of the
                  bonus payable under this Section 4.3(a)
                  shall be calculated as follows: the product of (s) the average
                  bonus paid
                  to the Executive for the three
                  (3)
                  fiscal years prior to the fiscal year in which his employment is
                  terminated divided by twelve (12), and (t) the number of months
                  the
                  Executive was actively employed (excluding the Notice Period) in
                  the
                  fiscal year in which his employment is terminated. In the event
                  the
                  Executive’s employment is terminated in the first twelve (12) months
                  following the Effective Date, the amount of the bonus payable hereunder
                  shall be calculated as follows: the product of (s) the target bonus
                  (75%
                  of Base Salary) that the Executive would have been entitled to
                  receive in
                  the year his employment was terminated divided by twelve (12),
                  and (t) the
                  number of months the Executive was actively employed (excluding
                  the Notice
                  Period) in the fiscal year in which his employment is terminated;
                  and

              

      

       

      
        	(b)  	
                pay
                  to the Executive those amounts and provide the benefits referenced
                  in
                  Section 4.2(c)(ii),
                  (iii)
                  and (iv)
                  above. 

              

      

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      Section 4.4  Mitigation

       

      The
        Executive shall not be required to mitigate the amount of any payments or
        the
        entitlement to any benefits provided for under Section 4.2(d)
        or
Section 4.3
        by
        seeking other employment nor shall any payment or benefit provided for in
        such
        Section be reduced by any compensation or remuneration and/or benefits earned
        by
        the Executive as a result of employment by another employer or the rendering
        of
        services after the date of termination.

       

      Section 4.5  Effect
        of Termination

       

      Upon
        termination of his employment for any reason whatsoever, the Executive shall
        thereupon be deemed to have immediately resigned any position the Executive
        may
        have as an officer, director or employee of the Corporation together with
        any
        other office, position or directorship which the Executive may hold with
        any of
        the Corporation’s affiliates or related entities. In such event, the Executive
        shall, at the request of the Corporation, forthwith execute any and all
        documents appropriate to evidence such resignations. The Executive shall
        not be
        entitled to any payments in respect of such resignations in addition to those
        provided for herein.

       

      Section 4.6  Payment
        Upon Termination

       

      Notwithstanding
        Section 4.2
        and
Section 4.3,
        the
        Executive shall not receive less than that which he is entitled to upon a
        termination of employment in accordance with applicable employment standards
        legislation. The payments referred to in Section 4.2(c)(ii),
        Section 4.2(d)(ii)
        and
Section 4.3(b)
        are
        inclusive of any termination and/or severance payments that may be required
        under employment standards legislation and have been agreed upon with reference
        to the Executive’s length of service with the Corporation.

       

      Section 4.7  Release

       

      The
        Executive agrees that payment by the Corporation of the amounts set out in
        Section 4.2(c),
        Section 4.2(d)
        or
Section 4.3
        shall be
        in full and final settlement of any and all actions, causes of actions, suits,
        claims, demands and entitlements whatsoever which the Executive has or may
        have
        against the Corporation, its affiliates and any of their respective directors,
        officers, employees, representatives, successors and assigns arising out
        of his
        hiring, his employment and the termination of his employment or this
        Agreement.

       

      Section 4.8  Suspension
        or Termination of Benefits and Compensation

       

      In
        the
        event that the Executive has breached any provisions of ARTICLE 5
        ,
        ARTICLE 6
        ,
        ARTICLE 7
        or
        ARTICLE 9
        ,
        the
        Corporation shall have the right to suspend or terminate any or all remaining
        payments and/or benefits, if any, referenced in Section 4.2(d)
        and
Section 4.3(b)
        of this
        Agreement, which are over and above the Executive’s entitlements upon
        termination of employment mandated by applicable employment standard
        legislation. Such suspension or termination of payments and/or benefits shall
        be
        in addition to and shall not limit any and all other rights and remedies
        as set
        out in Section 10.2
        of this
        Agreement that the Corporation may have against the Executive.

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      ARTICLE 5 -
        CONFIDENTIAL INFORMATION

       

      Section 5.1  Confidentiality
        

       

      
        	1          
                  	
                During
                  the term of this Agreement and following the termination thereof,
                  the
                  Executive shall not use, divulge, diffuse, sell, transfer, give,
                  circulate, or otherwise distribute to any Entity whatsoever or
                  whomsoever,
                  or otherwise make public, any Confidential
                  Information.

              

      

       

      
        	2             	
                Notwithstanding
                  any provision of this Agreement to the contrary, the Executive
                  shall have
                  the right to use Confidential Information in relation to the performance
                  of his duties, in which event, the Executive shall, at all times,
                  take all
                  reasonable measures in order to prevent the disclosure or non-authorized
                  use of such Confidential
                  Information.

              

      

       

      
        	3          
                  	
                Except
                  when authorized in accordance with the performance of his duties,
                  under no
                  circumstances shall the Executive reproduce any Confidential Information
                  without the prior written consent of the Board of Directors. All
                  reproductions of Confidential Information shall be governed by
                  this
                  Agreement and shall be treated as Confidential Information
                  hereunder.

              

      

       

      
        	4             	
                The
                  Executive shall not publish or release or allow the publication
                  or release
                  of any material containing Confidential Information without the
                  prior
                  written consent of the Board of
                  Directors.

              

      

       

      
        	5             	
                The
                  Executive shall not install, copy or receive any Confidential Information
                  into his own or any other computer or computer system not owned
                  and
                  controlled by the Corporation, without the express written permission
                  of
                  the Corporation. Where an Executive has received permission from
                  the Board
                  of Directors to so install, copy or receive Confidential Information,
                  the
                  Executive shall be solely responsible to the Corporation for the
                  security
                  of such Confidential Information and shall follow any and all directions
                  given by the Corporation.

              

      

       

      Section 5.2  Corporation
        Property

       

      Confidential
        Information (including any reproduction thereof) shall remain the sole property
        of the Corporation and shall be returned to the Corporation immediately upon
        request or upon the termination of the Executive’s employment, for any
        reason.

       

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      ARTICLE 6 -
        NON-COMPETITION

       

      Section 6.1  Non-Competition

       

      The
        Executive shall not, during the term of this Agreement and for a period of
        twenty-four
        (24)
        months following the termination of his employment, for any reason, on his
        own
        behalf or on behalf of any Entity, whether directly or indirectly, in any
        capacity whatsoever, alone, through or in connection with any Entity, carry
        on
        or be engaged in or have any financial or other interest in or be otherwise
        commercially involved in any endeavour, activity or business in all or part
        of
        the Territory which is competitive, in any way, with the Business.

       

      Section 6.2  Exception

       

      The
        Executive shall, however, not be in default under Section 6.1
        by
        virtue of the Executive holding, strictly for portfolio purposes and as a
        passive investor, no more than one percent (1%) of the issued and outstanding
        shares of or any other interest in, any body corporate which is listed on
        any
        recognized stock exchange, the business of which body corporate is in
        competition, in whole or in part, with the Corporation.

       

       

      ARTICLE 7 -
        NON-SOLICITATION

       

      Section 7.1  Non-Solicitation
        of Customers or Employees

       

      The
        Executive shall not, during the term of this Agreement and for a period of
        twenty-four
        (24)
        months following the termination of his employment, for any reason, on his
        own
        behalf or on behalf of or in connection with any other Entity, without the
        prior
        written consent of the Corporation, directly or indirectly, in any capacity
        whatsoever, alone through or in connection with any Entity: 

       

      
        	(a)  	
                canvass
                  or solicit the business of (or procure or assist the canvassing
                  or
                  soliciting of the business of) any Customer or Prospective Customer
                  or
                  customer of the Corporation’s affiliates for any purpose which is
                  competitive with the Business; or

              

      

       

      
        	(b)  	
                accept
                  (or procure or assist the acceptance of) any business from any
                  Customer or
                  Prospective Customer or customer of the Corporation’s affiliates which
                  business is competitive with the Business;
                  or

              

      

       

      
        	(c)  	
                supply
                  (or procure or assist the supply of) any goods or services to any
                  Customer
                  or Prospective Customer or customer of the Corporation’s affiliates for
                  any purpose which is competitive with the Business;
                  or

              

      

       

      
        	(d)  	
                employ,
                  engage, offer employment or engagement to or solicit the employment
                  or
                  engagement of or otherwise entice away from the employment or engagement
                  of the Corporation or any of its affiliates, any individual who
                  is
                  employed or engaged by the Corporation or any of its affiliates
                  whether or
                  not such individual would commit any breach of his contract or
                  terms of
                  employment or engagement by leaving the employ or the engagement
                  of the
                  Corporation or any of its affiliates;
                  or

              

      

       

      
        	(e)  	
                procure
                  or assist any Entity to employ, engage, offer employment or engagement
                  or
                  solicit the employment or engagement of any individual who is employed
                  or
                  engaged by the Corporation or any of its affiliates or otherwise
                  entice
                  away from the employment or engagement of the Corporation or any
                  of its
                  affiliates any such individual.

              

      

       

       

      ARTICLE 8 -
        NON-DISPARAGEMENT

       

      Section 8.1  Non-Disparagement

       

      The
        Executive covenants and agrees that he shall not engage in any pattern of
        conduct that involves the making or publishing of written or oral statements
        or
        remarks (including, without limitation, the repetition or distribution of
        derogatory rumours, allegations, negative reports or comments) which are
        disparaging, deleterious or damaging to the integrity, reputation or goodwill
        of
        the Corporation, its affiliates or its and their management.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      ARTICLE 9
        -
        INTELLECTUAL PROPERTY

      Section 9.1  Ownership
        of Intellectual Property

       

      
        	(1)  	
                All
                  rights, titles and interests in or to the Developments shall vest
                  and are
                  owned exclusively by the Corporation immediately on its creation
                  and
                  regardless of the stage of its completion. The Executive irrevocably
                  grants, transfers and assigns to the Corporation all of his right,
                  title
                  and interest, if any, in any and all Developments, including rights
                  to
                  translation and reproductions in all forms or formats and all Intellectual
                  Property Rights thereto, if any, and he agrees that the Corporation
                  may
                  copyright said materials in the Corporation's name and secure renewal,
                  reissues and extensions of such copyrights for such periods of
                  time as the
                  law may permit. 

              

      

       

      
        	(2)  	
                At
                  all times hereafter, the Executive agrees promptly to disclose
                  to the
                  Corporation all Developments, to execute separate written transfers
                  or
                  assignments to the Corporation at the Corporation's request, and
                  to assist
                  the Corporation in obtaining any Intellectual Property Right in
                  Canada,
                  the United States and in any other countries, on any Developments
                  granted,
                  transferred or assigned to the Corporation that the Corporation,
                  in its
                  sole discretion, seeks to register. The Executive also agrees to
                  sign all
                  documents, and do all things necessary to obtain such Intellectual
                  Property Rights, to further assign them to the Corporation, and
                  to
                  reasonably protect the Corporation against infringement by other
                  parties
                  at the Corporation’s expense with the Corporation’s prior written
                  approval.

              

      

       

      
        	(3)  	
                The
                  Executive shall keep complete, accurate, and authentic information
                  and
                  records on all Developments in the manner and form reasonably requested
                  by
                  the Board of Directors. Such information and records, and all copies
                  thereof, shall be the property of Corporation as to any Developments
                  assigned to the Corporation. The Executive agrees to promptly surrender
                  such information and records at the request of the Board of Directors.
                  All
                  these materials will be Confidential Information upon their
                  creation.

              

      

       

      Section 9.2  Moral
        Rights

       

      The
        Executive hereby irrevocably waives, in favour of the Corporation, its
        successors, assigns and nominees, all moral rights arising under the
Copyright
        Act
        (Canada)
        as amended (or any successor legislation of similar effect) or similar
        legislation in any applicable jurisdiction, or at common law, to the full
        extent
        that such rights may be waived in each respective jurisdiction, that the
        Executive may have now or in the future with respect to the Developments.
        

       

       

      ARTICLE 10 -
        RECOGNITION

       

      Section 10.1  Recognition

       

      
        	1             
                	
                The
                  Executive expressly recognizes that Articles 5, 6, 7 and 9 of this
                  Agreement are of the essence of this Agreement, and that the Corporation
                  would not have entered into this Agreement without the inclusion
                  of the
                  said Articles.

              

      

       

      
        	2          
                  	
                The
                  Executive further recognizes and expressly acknowledges that: (i) the
                  application of the Articles 5, 6, 7, 8 and 9 of this Agreement
                  will not
                  have the effect of prohibiting him from earning a living in a satisfactory
                  manner in the event of the termination his employment and of this
                  Agreement, and (ii) the Corporation would be subject to an
                  irreparable prejudice should one or several of the said Articles
                  be
                  infringed, or should the Executive be in breach of any of his obligations
                  thereunder.

              

      

       

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      
        	3            	
                The
                  Executive further recognizes and expressly acknowledges that the
                  Articles
                  5, 6, 7, 8 and 9 of this Agreement grant to the Corporation only
                  such
                  reasonable protection as is admittedly necessary to preserve the
                  legitimate interests of the Corporation and the Executive equally
                  recognizes, in this respect, that the description of the Business
                  is
                  reasonable.

              

      

       

      Section 10.2  Remedies

       

      The
        Executive hereby recognizes and expressly acknowledges that the Corporation
        would be subject to irreparable harm should any of the provisions of Article
        5,
        6, 7 or 9 be infringed, or should any of the Executive's obligations thereunder
        be breached by the Executive, and that damages alone will be an inadequate
        remedy for any breach or violation thereof and that the Corporation, in addition
        to all other remedies, shall be entitled as a matter of right to equitable
        relief, including temporary or permanent injunction to restrain such
        breach.

       

       

      ARTICLE 11
        -
        CONFLICTING OBLIGATIONS

       

      Section 11.1  No
        Conflicting Obligations

       

      The
        Executive represents and warrants to the Corporation that:

       

      
        	(a)  	
                there
                  exists no agreement or contract and he is not subject to any obligation,
                  which restricts him from (i) being employed by the Corporation;
                  or (ii)
                  from performing the duties assigned to him pursuant to this Agreement;
                  or
                  (iii) from soliciting the clients or customers of a third party;
                  or (iv)
                  from using information within his knowledge or control which may
                  be useful
                  in the performance of his duties for the
                  Corporation;

              

      

       

      
        	(b)  	
                in
                  the performance of his duties for the Corporation, he shall not
                  improperly
                  bring to the Corporation or use any trade secrets, confidential
                  information or other proprietary information of any third party;
                  and

              

      

       

      
        	(c)  	
                he
                  will not infringe the intellectual property rights of any third
                  party.

              

      

       

      Section 11.2  Indemnity

       

      The
        Executive acknowledges that the Corporation has relied upon the representations
        outlined in Section 11.1
        above.
        The Executive agrees to indemnify and hold the Corporation, its directors,
        officers, employees, agents and/or consultants harmless against any and all
        claims, liabilities, losses, damages, costs, fees and/or expenses including
        reasonable legal fees incurred by the Corporation, its directors, officers,
        employees, agents and/or consultants by reason of an alleged violation by
        the
        Executive of any of the representations contained in Section 11.1
        of this
        Agreement.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      ARTICLE 12 -
        GENERAL

       

      Section 12.1  Notice
        Provisions

       

      Except
        as
        otherwise expressly provided herein, all notices relating to this Agreement
        shall be in writing and either delivered by hand, courier service or facsimile
        transmission and addressed as follows:

       

      
        	 	
                The
                  Executive:

              	
                John
                  I. Bitove

              

      

      177
        Forest Hill Road

      Toronto,
        Ontario M5P 2N3

       

      
        	 	
                The
                  Corporation:

              	
                161
                  Bay Street

              

      

      BCE
        Place, Suite 2300

      Toronto,
        Ontario M5J 2S1

       

      
        	 	
                Attention:   Board
                  of Directors

              	
                 

              

      

       

      Any
        address referred to in this Section 12.1
        may be
        changed by notice given in accordance with the provisions of this Section.
        Any
        notice which is delivered by hand, courier service or facsimile transmission
        shall be effective when delivered. 

       

      Section 12.2  Entire
        Agreement

       

      This
        Agreement contains the entire agreement between the Corporation and the
        Executive and supersedes all previous negotiations, understandings and
        agreements whether verbal or written, with respect to the terms and conditions
        of employment between the Corporation and the Executive.

       

      Section 12.3  Survival

       

      It
        is
        expressly agreed by the parties hereto that the provisions of Articles 4,
        5, 6,
        7, 8, 9, 10, 11 and 12 shall survive the termination of this Agreement and
        the
        termination of the Executive’s employment, for any reason.

       

      Section 12.4  Privacy

       

      By
        accepting employment with the Corporation, the Executive consents to the
        Corporation collecting, using and disclosing his personal information for
        purposes relating to the maintenance of the employment relationship. The
        purposes of the Corporation’s collection, use and disclosure include, but are
        not limited to:

       

      
        	(a)  	
                ensuring
                  that the Executive is properly remunerated for his services to
                  the
                  Corporation which shall include disclosure to third party payroll
                  providers;

              

      

       

      
        	(b)  	
                administering
                  and/or facilitating the provision of any benefits to which the
                  Executive
                  is or may become entitled, including bonuses, benefits, pensions,
                  registered retirement savings plan, short, medium and long-term
                  incentive
                  plans; this shall include the disclosure of the Executive’s personal
                  information to the Corporation’s third party service providers and
                  administrators;

              

      

       

       

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	(c)  	
                ensuring
                  that the Corporation is able to comply with any regulatory, reporting
                  and
                  withholding requirements relating to the Executive’s
                  employment;

              

      

       

      
        	(d)  	
                performance
                  and promotion;

              

      

       

      
        	(e)  	
                monitoring
                  the Executive’s access to and use of the Corporation’s electronic media
                  services in order to ensure that the use of such services is in
                  compliance
                  with the Corporation’s policies and procedures and is not in violation of
                  any applicable laws; 

              

      

       

      
        	(f)  	
                complying
                  with the Corporation’s obligations to report improper or illegal conduct
                  by any director, officer, employee or agent of the Corporation
                  under any
                  applicable securities, criminal or other law;
                  and

              

      

       

      
        	(g)  	
                any
                  other purpose for which the Executive is given notice and which
                  is
                  reasonably related to the maintenance of the Executive’s employment
                  relationship.

              

      

       

      If
        the
        Executive’s specific consent to the collection, use or disclosure of his
        personal employee information is required under applicable law, the Executive
        hereby agrees to provide such consent. If the Executive refuses or withdraws
        his
        consent, the Executive acknowledges that his employment with the Corporation
        may
        be negatively affected.

       

      Section 12.5  Governing
        Law

       

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

       

      Section 12.6  Successors
        and Assigns

       

      This
        Agreement may not be assigned by the Executive. This Agreement and the rights
        and obligations hereunder may, without the further express consent of the
        Executive, be assigned by the Corporation to any Entity which succeeds to
        all or
        substantially all of the business, assets or property of the
        Corporation.

       

      Section 12.7  Execution
        of Further Documents

       

      The
        Corporation and Executive agree that they shall, from time to time and at
        all
        times, do all such further acts and execute and deliver all such further
        documents and assurances as shall be reasonably required in order to fully
        perform and carry out the terms of this Agreement.

       

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      Section 12.8  Amendments
        and Waivers

       

      No
        supplement, modification, amendment or waiver of this Agreement shall be
        binding
        unless executed in writing by the Executive and the Corporation. No waiver
        of
        any of the provisions of this Agreement shall be deemed to constitute a waiver
        of any other provision (whether or not similar), nor shall such waiver
        constitute a waiver or continuing waiver unless otherwise expressly provided
        in
        writing duly the party to be bound thereby. 

       

      Section 12.9  Severability

       

      In
        the
        event that any provision or any part of any provision hereof is deemed to
        be
        invalid by reason of the operation of any law or by reason of the interpretation
        placed thereon by a court, this Agreement shall be construed as not containing
        such provision or part of such provision and the invalidity of such provision
        or
        such part shall not affect the validity of any other provision or the remainder
        of such provision hereof. All other provisions hereof which are otherwise
        lawful
        and valid shall remain in full force and effect.

       

      Section 12.10  Legal
        Advice

       

      The
        Executive acknowledges that he has been afforded the opportunity to obtain
        independent legal advice with respect to this Agreement and that he fully
        understands the nature and consequences of this Agreement. 

       

      Section 12.11  Currency

       

      All
        amounts expressed herein are in Canadian
        dollars
        unless otherwise noted and all payments hereunder are subject to all applicable
        and required deductions.

       

      Section 12.12  Preamble/Recital

       

      The
        Executive and the Corporation acknowledge and agree that the provisions
        contained in the preamble/recital section of this Agreement shall form part
        of
        this Agreement and may be relied upon by either party.

       

      Section 12.13  Counterparts

       

      This
        Agreement may be executed by the parties in one or more counterparts, each
        of
        which when so executed and delivered shall be deemed to be an original and
        such
        counterparts shall together constitute one and the same instrument.

       

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF
        the
        parties have caused this Agreement to be executed as of the effective date
        first
        above written.

       

      
        	 	 	 
	 	
                CANADIAN
                  SATELLITE RADIO INC.

              
	 
 	 
 	 
 
	
              	Per:  	/s/ Michael
                Washinushi
	 	
                

                Michael
                  Washinushi

              
	 	Title 

      

       

      
        	 	 	 
	 	 
	 
 	 
 	 
 
	/s/
                Maria Yeh	 	/s/ John
                I. Bitove
	
                
(Witness)
                	
                
John
                I. BitoveExhibit 10.7

    
      EXHIBIT
        10.7

    

    
 

    EMPLOYMENT
      AGREEMENT

     

    Employment
      Agreement dated December 5,
      2005
      (the “Effective
      Date”)
      between
      Canadian Satellite Radio Inc. (the “Corporation”)
      and
      Stephen Tapp (the “Executive”).

     

    RECITALS

     

    
      	(a)  	
              The
                Executive has been employed by the Corporation since September 7,
                2004, in
                the position of President and Chief Operating
                Officer;

            

    

     

    
      	(b)  	
              Canadian
                Satellite Radio Holdings Inc. (“CSR
                Holdings”),
                the parent of the Corporation, is conducting a public offering of
                subordinate voting shares of CSR Holdings (the “IPO”);
                

            

    

     

    
      	(c)  	
              As
                a term of the IPO the Corporation and the Executive are required
                to enter
                into and be bound by the terms of this
                Agreement;

            

    

     

    
      	(d)  	
              As
                a whole, this Agreement contains terms and conditions which are more
                favourable to the Executive than those presently applicable to
                him.

            

    

     

    In
      consideration of the mutual covenants and agreements contained in this Agreement
      (the receipt and adequacy of which are acknowledged), the parties agree as
      follows.

     

     

    ARTICLE 1-
      DEFINITIONS

     

    Section 1.1  Defined
      Terms.

     

    As
      used
      in this Agreement, the following terms have the following meanings:

     

    “Business”
      means
      (i) the
      business of providing subscription based satellite radio
      entertainment;
      and
      (ii) any other principle line business representing at least 25% of the
      Corporation’s revenue conducted by the Corporation after the Effective Date up
      to the termination of the Executive’s employment.

     

    “Cause”
      means:

     

    
      	(a)  	
              a
                breach by the Executive of any of the restrictions or covenants contained
                in Articles 5, 6 and 7; 

            

    

     

    
      	(b)  	
              any
                material breach by the Executive of his obligations under any code
                of
                ethics, any other code of business conduct or any lawful policies
                or
                procedures of the Corporation; or

            

    

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              any
                act or omission of the Executive which would in law permit the
                Corporation, without notice or payment in lieu of notice, to terminate
                the
                employment of the Executive.

            

    

     

    “Change
      of Control” means:

     

    
      	(a)  	
              any
                sale, reorganization, amalgamation, merger or other transaction as
                a
                result of which an Entity or group of Entities acting jointly or
                in
                concert (whether by means of a shareholder agreement or otherwise)
                or
                Entities associated or affiliated with any such Entity or group within
                the
                meaning of the Business
                Corporations Act
                (Ontario), other than Canadian Satellite Radio Investments Inc.,
                John
                Bitove, the Executive and his associates, becomes the owner, legal
                or
                beneficial, directly or indirectly, of fifty
                (50%)
                percent or more of the shares of the Corporation or exercises control
                or
                direction over fifty (50%) percent
                or more of the shares of the Corporation; (other than solely involving
                the
                Corporation and one or more of its affiliates)
                or

            

    

     

    
      	(b)  	
              a
                sale, lease or other disposition of all or substantially all of the
                property or assets of the Corporation other than to an affiliate
                which
                assumes all of the obligations of the Corporation in respect of the
                Executive including the assumption of this Agreement;
                or

            

    

     

    
      	(c)  	
              a
                change in the composition of the Corporation’s Board of Directors which
                occurs at a single meeting of the shareholders of the Corporation
                or upon
                the execution of a shareholder’s resolution, such that individuals who are
                [independent]
                members of the Board of Directors immediately prior to such meeting
                or
                resolution cease to constitute a majority of the [independent
                members of the]
                Board of Directors, without the Board of Directors, as constituted
                immediately prior to such meeting or resolution, having approved
                of such
                change.

            

    

     

    “Confidential
      Information” means
      all
      information owned, possessed or controlled by the Corporation and/or its
      affiliates including, without limitation, all information related to
      developments, inventions, enhancements, financial, scientific, technical,
      manufacturing, process know-how and marketing information and all names of
      or
      lists of customers and suppliers howsoever received by the Executive from,
      through or relating to the Corporation and/or its affiliates and in whatever
      form (whether oral, written, machine readable or otherwise), which pertains
      to
      the Corporation and/or its affiliates; provided, however, that the phrase
“Confidential Information” shall not include information which:

     

    
      	(a)  	
              was
                in the public domain prior to the date of receipt by the
                Executive;

            

    

     

    
      	(b)  	
              becomes
                part of the public domain by publication or otherwise, not due to
                any
                unauthorized act or omission of the Executive;
                or

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              the
                Executive is required by law to disclose, provided that, unless prohibited
                by law, the Executive first notifies the Reporting Officer (as defined
                herein) at the first reasonable opportunity that he is required to
                disclose such Confidential
                Information.

            

    

     

    “Customer”
      means
      any
      Entity who has (i) purchased or licensed from the Corporation (with
      the
      Executive’s knowledge) any product produced or service supplied, sold, licensed
      or distributed by the Corporation or, (ii) supplied to the Corporation (with
      the
      Executive’s knowledge) any product to be produced, sold, licensed or distributed
      by the Corporation; provided that after the termination of the Executive’s
      employment for any reason, Customers shall only include any Entity who was
      a
      Customer during the twelve (12) months preceding the date of the termination
      of
      the Executive’s employment.

     

    “Development”
means
      any discovery, invention, design, improvement, concept, specification, creation,
      development, treatment, computer program, method, process, apparatus, specimen,
      formula, formulation, product, hardware or firmware, any drawing, report,
      memorandum, article, letter, notebook and any other work of authorship and
      ideas
      (whether or not patentable or copyrightable) and legally recognized proprietary
      rights (including, but not limited to, patents, copyrights, trademarks,
      topographies, know-how and trade secrets), and all records and copies of records
      relating to the foregoing, that:

     

    
      	(a)  	
              result
                or derive from the Executive’s employment or from the Executive’s
                knowledge or use of Confidential
                Information;

            

    

     

    
      	(b)  	
              are
                conceived or made by the Executive (individually or in collaboration
                with
                others) in the course of his
                employment;

            

    

     

    
      	(c)  	
              result
                from or derive from the use or application of the resources of the
                Corporation; or 

            

    

     

    
      	(d)  	
              relate
                to the business operations of actual or demonstrably anticipated
                research
                and development by the Corporation.

            

    

     

    "Disability"
      means
      the Executive’s inability to substantially fulfil his duties on behalf of the
      Corporation for a continuous period of six
      (6)
      months
      or more or the Executive’s inability to substantially fulfil his duties on
      behalf of the Corporation for an aggregate period of six
      (6)
      months
      or more during any consecutive twelve
      (12)
      month
      period, which the parties agree would cause undue hardship to the Corporation
      which cannot be accommodated; and if there is any disagreement between the
      Corporation and the Executive as to the Executive’s Disability or as to the date
      any such Disability began or ended, the same shall be determined by a physician
      mutually acceptable to the Corporation and the Executive whose determination
      shall be conclusive evidence of any such Disability and of the date any such
      Disability began or ended.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Entity”
      means
      a
      natural person, partnership, limited liability partnership, corporation, joint
      stock company, trust, unincorporated association, joint venture or other entity
      or governmental entity, and pronouns have a similarly extended
      meaning.

     

    “Good
      Reason”
means
      constructive dismissal in accordance with the common law, provided, however
      that
      the following shall not constitute Good Reason for the purposes of this
      Agreement:

     

    
      	(a)  	
              any
                change or series of changes in the responsibilities, authority, status
                or
                reporting relationship of the Executive with the Corporation during
                the
                first eighteen (18) months from the Effective Date;
                or

            

    

     

    
      	(b)  	
              a
                reduction by the Corporation in the Executive’s annual Base Salary which
                is part of a general reduction in the Base Salary of all or substantially
                all of the senior executives of the Corporation which:
                

            

    

     

    
      	(i)  	
              occurs
                during the first eighteen (18) months from the Effective Date;
                

            

    

     

    
      	(ii)  	
              affects
                the Executive in substantially the same manner as the other senior
                executives who are also affected by such general reduction;
                and

            

    

     

    
      	(iii)  	
              does
                not constitute more than fifteen percent (15%) of his Base Salary;
                or

            

    

     

    
      	(c)  	
              any
                requirement by the Corporation that the Executive’s principal office be
                relocated to any major urban centre in Canada, provided the Corporation
                reimburses the Executive for all reasonable relocation
                expenses.

            

    

     

    “Intellectual
      Property Rights”
      means
      all worldwide intellectual and industrial property rights in connection with
      the
      Developments including, without limitation:

     

    
      	(i)  	
              patents,
                inventions, discoveries and
                improvements;

            

    

     

    
      	(ii)  	
              ideas,
                whether patentable or not;

            

    

     

    
      	(iii)  	
              copyrights;
                

            

    

     

    
      	(iv)  	
              trademarks;

            

    

     

    
      	(v)  	
              trade
                secrets; 

            

    

     

    
      	(vi)  	
              industrial
                and artistic designs; and

            

    

     

    
      	(vii)  	
              proprietary,
                possessory and ownership rights and interests of all kinds
                whatsoever;

            

    

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    including,
      without limitation, the right to apply for registration or protection of any
      of
      the foregoing.

     

    “Prospective
      Customers”
      means
      (i) any Entity solicited by the Executive on behalf of the Corporation for
      any
      purpose relating to the Business, and (ii) any Entity solicited by the
      Corporation with the Executive's knowledge for any purpose relating to the
      Business; provided that after termination of the Executive’s employment for any
      reason, Prospective Customers shall only include any Entity who was a
      Prospective Customer during the twelve (12) months preceding the date of the
      termination of the Executive’s employment.

     

    “Territory”
      means
      Canada.

     

     

    ARTICLE 2
      - EMPLOYMENT

     

    Section 2.1  Position

     

    On
      the
      terms and subject to the conditions hereinafter contained, the Executive will
      continue in the employ of the Corporation as its President and Chief Operating
      Officer.

     

    Section 2.2  Duties
      of Employment

     

    The
      Executive shall report to and be subject to the general direction of the Chief
      Executive Officer of the Corporation (the “Reporting
      Officer”)
      and
      shall have such duties and responsibilities as are delegated to him by the
      Reporting Officer.

     

    Section 2.3  Full
      and Faithful Service

     

    The
      Executive shall well and faithfully serve the Corporation and use his best
      efforts to promote the interests of the Corporation and during the term of
      this
      Agreement, the Executive shall devote his full time and energy to the
      Corporation and shall not, directly or indirectly, render services to any Entity
      other than services with regard to charitable or community service
      organizations, or any other organizations that are approved by the Corporation,
      provided such activities do not interfere with Executive’s duties hereunder. The
      Executive further acknowledges that he will comply with (i) the lawful policies
      and procedures established by the Corporation, from time to time, including
      any
      code of ethics or business conduct adopted by the Corporation (including any
      future revisions of such policies, procedures or other codes of business
      conduct), and (ii) all applicable laws, rules and regulations, and all
      requirements of all applicable regulatory, self-regulatory and administrative
      bodies.

     

    Section 2.4  Term

     

    This
      Agreement shall be effective from the Effective Date and shall continue in
      effect until the date the Agreement is terminated in accordance with Article
      4
      hereof.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    ARTICLE 3
      -
      REMUNERATION AND BENEFITS

     

    Section 3.1  Salary

     

    The
      Corporation shall pay to the Executive a salary (the “Base
      Salary”)
      at the
      rate of $400,000
      per
      annum, payable to the Executive in accordance with the payroll practices of
      the
      Corporation for its senior management as are in effect from time to time. The
      Executive’s Base Salary may be increased by the
      Reporting Officer from
      time
      to time and once increased shall thereafter be the Base Salary
      hereunder.

     

    Section 3.2  Bonus
      

     

    The
      Executive shall be eligible to participate in the Corporation’s bonus plan for
      senior management (the “Bonus
      Plan”)
      in
      accordance with the terms and conditions of such plan. Such participation shall
      be at a level such that the Executive shall have the potential to receive,
      at
      target, a bonus of up to 75% of his Base Salary with a maximum bonus of up
      to
      100% of his Base Salary based on achievement of the goals established pursuant
      to the Bonus Plan.

     

    Section 3.3  Stock
      Options 

     

    The
      Executive shall, subject to the terms and conditions of the stock option plan
      of
      the Corporation adopted in 2005 (as same may be amended from time to time),
      participate in such plan as determined by the Board of Directors of the
      Corporation.

     

    Section 3.4  Health
      and Insurance Benefits 

     

    The
      Executive shall be eligible to participate in such health, medical, dental,
      disability and life insurance coverage as the Corporation has in effect for
      its
      senior management from time to time.

     

    Section 3.5  Expenses

     

    The
      Corporation will pay or reimburse the Executive for all reasonable travelling
      and other out-of-pocket expenses incurred by the Executive in connection with
      his employment hereunder in accordance with the policies of the Corporation
      in
      effect from time to time.

     

    Section 3.6  Vacation 

     

    During
      each full calendar year of this Agreement, the Executive will be entitled to
      four (4)
      weeks
      vacation with pay to be taken at a time(s) mutually agreeable to the Executive
      and the Corporation. The Executive will be allowed to carry forward any unused
      vacation time into the next year to the extent same is permitted by the policies
      of the Corporation or by the Reporting Officer.

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    ARTICLE 4
      -
      TERMINATION

     

    Section 4.1  Termination
      by the Corporation

     

    This
      Agreement and the employment contemplated hereunder may (and in the case of
      Section 4.1(d),
      shall)
      be terminated, at any time, in the following manner and in the following
      circumstances:

     

    
      	(a)  	
              by
                the Executive, by providing four
                (4) weeks
                written notice of resignation to the Corporation (the “Notice
                of Resignation Period”),
                in which case, subject to Section 4.1(b),
                this Agreement and the Executive’s employment shall terminate at the end
                of the Notice of Resignation Period; 

            

    

     

    
      	(b)  	
              during
                the Notice of Resignation Period, the Corporation may waive such
                Notice of
                Resignation Period, in whole or in part, in which case this Agreement
                and
                the Executive’s employment shall terminate immediately upon receipt by the
                Executive of a written notice from the
                Corporation;

            

    

     

    
      	(c)  	
              by
                the Corporation, for Cause, in which case this Agreement and the
                Executive’s employment shall terminate immediately upon receipt of a
                written notice by the Executive from the Corporation setting out
                the cause
                for termination;

            

    

     

    
      	(d)  	
              automatically
                without further notice, upon the death of the Executive, in which
                case the
                Executive’s employment and this Agreement shall terminate on the date of
                the Executive’s death;

            

    

     

    
      	(e)  	
              by
                the Corporation, in the event of a material violation of this Agreement
                (other than one constituting Cause) by the Executive where such violation
                has not been cured within ten
                (10)
                working days following receipt of written notice thereof by the Executive
                from the Corporation. This Agreement and the Executive’s employment shall
                terminate ten
                (10)
                days following receipt by the Executive of written notice from the
                Corporation of a material violation of this Agreement (other than
                a
                material violation that constitutes Cause) if such material violation
                of
                this Agreement has not been cured to the satisfaction of the Corporation
                by the Executive;

            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	(f)  	
              by
                the Corporation, without Cause and other than for the circumstances
                in
                Section 4.1(b),
                (d),
                (e)
                or
                (h),
                in which case this Agreement and the Executive’s employment shall
                terminate immediately upon receipt by the Executive of a written
                notice of
                termination from the Corporation;

            

    

     

    
      	(g)  	
              by
                the Executive, within thirty (30) days of the occurrence of any event
                constituting Good Reason, in which case this Agreement and the Executive’s
                employment shall terminate immediately upon receipt by the Executive
                of a
                written notice of termination by the Executive;
                or

            

    

     

    
      	(h)  	
              by
                the Corporation, in the event of frustration of this Agreement due
                to the
                Executive’s Disability, in which case this Agreement and the Executive’s
                employment shall terminate immediately upon receipt of a written
                notice by
                the Executive from the Corporation.

            

    

     

    Section 4.2  Payment
      Upon Termination

     

    In
      the
      event the Executive’s employment is terminated pursuant to Section 4.1,
      the
      Executive shall only be entitled to the following compensation and benefits
      upon
      termination:

     

    
      	(a)  	
              Should
                this Agreement be terminated pursuant to Section 4.1(a)
                or
                (b),
                the Executive shall only be entitled to (i) payment of the Executive’s
                Base Salary for the period from the date of termination by the Corporation
                to the end of the Notice of Resignation Period; (ii) continued health
                and
                welfare insurance benefits coverage in which the Executive was
                participating at the date of termination by the Corporation to the
                end of
                the Notice of Resignation Period; (iii) the value of the pro-rated
                vacation leave with pay for that portion of the calendar year up
                to the
                end of the Notice of Resignation Period and any vacation from previous
                years carried forward in accordance with Section 3.6
                of
                this Agreement, to the extent the Executive’s accrued vacation entitlement
                has not been used by him at the time of termination; (iv) any accrued
                but
                unpaid business expenses at the date of termination by the Corporation
                required to be reimbursed under Section 3.5
                of
                this Agreement; and (v) any entitlements in accordance with the terms
                of
                any stock option plans in which he participated at the date of
                termination. 

            

    

     

    
      	(b)  	
              Should
                this Agreement be terminated pursuant to Section 4.1(c)
                or
                (e),
                the Executive shall only be entitled to (i) payment of the
                Executive's Base Salary earned up to the date of termination; (ii)
                the
                value of the pro-rated vacation leave with pay for that portion of
                the
                calendar year in which the employment of the Executive hereunder
                is
                terminated that the Executive was actively employed and any vacation
                from
                previous years carried forward in accordance with Section 3.6
                of
                this Agreement, to the extent the Executive’s accrued vacation entitlement
                has not been used by him at the time of termination; and (iii) any
                accrued but unpaid business expenses at the date of termination required
                to be reimbursed under Section 3.5
                of
                this Agreement.

            

    

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	(c)  	
              Should
                this Agreement be terminated pursuant to Section 4.1(d)
                or
                Section 4.1(h),
                the Corporation’s only obligations shall be
                to:

            

    

     

    
      	(i)  	
              pay
                to the Executive (w) any accrued but unpaid Base Salary for services
                rendered to the date of termination; (x) a bonus for that portion
                of the
                year in which the Executive was actively employed; (y) any accrued
                but
                unpaid expenses at the date of termination required to be reimbursed
                under
                Section 3.5
                of
                this Agreement; and (z) the value of the pro-rated vacation leave
                with pay
                for that portion of the calendar year in which the employment of
                the
                Executive hereunder is terminated that the Executive was actively
                employed
                and any vacation from previous years carried forward in accordance
                with
                Section 3.6
                of
                this Agreement, to the extent the Executive’s accrued vacation entitlement
                has not been used by him at the time of termination. The amount of
                the
                bonus payable under this Section 4.2(c)(i)
                shall be calculated as follows: the product of (s) the average bonus
                paid
                to the Executive for the three
                (3)
                fiscal years prior to the fiscal year in which his employment is
                terminated divided by twelve (12), and (t) the number of months the
                Executive was actively employed in the fiscal year in which his employment
                is terminated. In the event the Executive’s employment is terminated in
                the first twelve (12) months following the Effective Date, the value
                of
                such bonus shall be calculated as follows: the product of (s) the
                target
                bonus (75% of Base Salary) that the Executive would have been entitled
                to
                receive in the year his employment was terminated divided by twelve,
                and
                (t) the number of months the Executive was actively employed in the
                fiscal
                year in which his employment is
                terminated;

            

    

     

    
      	(ii)  	
              pay
                to the Executive an amount equal to six
                (6) months of his Base Salary as at the date of termination, to be
                paid
                either by lump sum within thirty
                days of the date of termination or by way of salary continuance on
                the
                Corporation’s regular pay day, and in accordance with its payroll
                practices at the date of termination, as is determined by the
                Corporation; 

            

    

     

    
      	(iii)  	
              pay
                to the Executive an amount in lieu of the value of any annual bonus
                the
                Executive would have earned had he been employed for the six (6)
                months
                immediately following the date of termination. Such amount shall
                be paid
                six (6) months following the date of termination and shall be the
                average
                bonus (excluding any retention bonus) paid to the Executive for the
                three
                (3)
                fiscal years prior to the fiscal year in which his employment is
                terminated divided by two (2). In
                the event the Executive’s employment is terminated in the first twelve
                (12) months following the Effective Date, the value of such bonus
                shall be
                the target bonus (75% of Base Salary) that the Executive would have
                been
                entitled to receive in the year his employment was terminated divided
                by
                two (2);
                and

            

    

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      	(iv)  	
              continue
                the Executive’s entitlements in accordance with the terms of any stock
                option plans in which he participated at the date of termination.
                

            

    

     

    
      	(d)  	
              Should
                the Agreement be terminated pursuant to Section 4.1(f)
                or
                Section 4.1(g),
                the Corporation’s only obligations shall be
                to:

            

    

     

    
      	(i)  	
              pay
                to the Executive (w) any accrued but unpaid Base Salary for services
                rendered to the date of termination; (x) a bonus for that portion
                of the
                year in which the Executive was actively employed (excluding the
                Notice
                Period); (y) any accrued but unpaid expenses at the date of termination
                required to be reimbursed under Section 3.5
                of
                this Agreement; and (z) the value of the pro-rated vacation leave
                with pay
                for that portion of the calendar year in which the employment of
                the
                Executive hereunder is terminated that the Executive was actively
                employed
                and any vacation from previous years carried forward in accordance
                with
                Section 3.6
                of
                this Agreement, to the extent the Executive’s accrued vacation entitlement
                has not been used by him at the time of termination. The amount of
                the
                bonus payable under this Section 4.2(d)(i)
                shall be calculated as follows: the product of (s) the average bonus
                paid
                to the Executive for the three
                (3)
                fiscal years prior to the fiscal year in which his employment is
                terminated divided by twelve (12), and (t) the number of months the
                Executive was actively employed (excluding the Notice Period) in
                the
                fiscal year in which his employment is terminated. In
                the event the Executive’s employment is terminated in the first twelve
                (12) months following the Effective Date, the
                amount of the bonus payable hereunder shall be calculated as follows:
                the
                product of (s) the
                target bonus (75% of Base Salary) that the Executive would have been
                entitled to receive in the year his employment was terminated divided
                by twelve (12), and (t) the number of months the Executive was actively
                employed (excluding the Notice Period) in the fiscal year in which
                his
                employment is terminated;

            

    

     

    
      	(ii)  	
              pay
                to the Executive an amount equal to twenty-four
                (24)
                months (the “Notice
                Period”)
                of his Base Salary as at the date of termination. Payment of the
                Executive’s Base Salary during the Notice Period shall be made either by
                lump sum within thirty
                days of the date of termination or by way of salary continuance on
                the
                Corporation’s regular pay day, and in accordance with its payroll
                practices at the date of termination, as is determined by the
                Corporation; 

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	(iii)  	
              pay
                to the Executive an amount in lieu of the value of any annual bonus
                the
                Executive would have earned had he been employed for the length of
                the
                Notice Period. Such amount shall be paid at the end of the Notice
                Period
                and shall be calculated as follows: the product of (s) the average
                bonus
                (excluding any retention bonus) paid to the Executive for the three
                (3)
                fiscal years prior to the fiscal year in which his employment is
                terminated divided by twelve (12), and (t) the number of months in
                the
                Notice Period.
                In
                the event the Executive’s employment is terminated in the first twelve
                (12) months following the Effective Date, such bonus shall
                be calculated as follows: the product of (s) the
                target bonus (75% of Base Salary) that the Executive would have been
                entitled to receive in the year his employment was terminated divided
                by
                twelve (12), and (t) the number of months in the Notice
                Period;

            

    

     

    
      	(iv)  	
              continue
                the Executive’s participation in the health and welfare benefit plans
                (excluding short-term disability, long term disability benefits and
                life
                insurance coverage which shall cease on the date of termination)
                in which
                the Executive was participating at the date of termination, until
                the
                earlier of (x) the end of the Notice Period; or (y) the date the
                Executive becomes covered under the benefit plans of another employer.
                The
                Corporation’s obligation hereunder is conditional on the Executive
                continuing to pay his share of the premiums;
                and

            

    

     

    
      	(v)  	
              continue
                the Executive’s entitlements in accordance with the terms of any stock
                option plans in which he participated at the date of
                termination.

            

    

     

    Section 4.3  Termination
      Upon a Change of Control

     

    In
      lieu
      of and not in addition to the termination payments and benefits provided for
      in
Section 4.2(d)
      herein,
      if within twelve
      (12)
      months
      following a Change of Control, the Executive’s employment with the Corporation
      is terminated for any reason whatsoever other than as a result of a termination
      pursuant to Section 4.1(a),
      (b),
      (c),
      (d),
      (e)
      or
(h),
      the
      Corporation’s only obligations shall be to:

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	(a)  	
              pay
                to the Executive (i) any accrued but unpaid Base Salary for services
                rendered to the date of termination, (ii) a bonus for that portion
                of the
                year in which the Executive was actively employed (excluding the
                Notice
                Period); (iii) any accrued but unpaid expenses at the date of termination
                required to be reimbursed under Section 3.5
                of
                this Agreement, and (iv) the value of the pro-rated vacation leave
                with
                pay for that portion of the calendar year in which the employment
                of the
                Executive hereunder is terminated that the Executive was actively
                employed
                and any vacation from previous years carried forward in accordance
                with
                Section 3.6
                of
                this Agreement, to the extent the Executive’s accrued vacation entitlement
                has not been used by him at the time of termination. The amount of
                the
                bonus payable under this Section 4.3(a)
                shall be calculated as follows: the product of (s) the average bonus
                paid
                to the Executive for the three
                (3)
                fiscal years prior to the fiscal year in which his employment is
                terminated divided by twelve (12), and (t) the number of months the
                Executive was actively employed (excluding the Notice Period) in
                the
                fiscal year in which his employment is terminated. In
                the event the Executive’s employment is terminated in the first twelve
                (12) months following the Effective Date, the
                amount of the bonus payable hereunder shall be calculated as follows:
                the
                product of (s) the
                target bonus (75% of Base Salary) that the Executive would have been
                entitled to receive in the year his employment was terminated divided
                by twelve (12), and (t) the number of months the Executive was actively
                employed (excluding the Notice Period) in the fiscal year in which
                his
                employment is terminated; and

            

    

     

    
      	(b)  	
              pay
                to the Executive, in
                a lump sum payment those
                amounts referenced
                in Section 4.2(d)(ii) and (iii),
                and continue those benefits and entitlements referenced in Section 4.2(d)(iv)
                and (v). 

            

    

     

    Section 4.4  Mitigation

     

    The
      Executive shall not be required to mitigate the amount of any payments or the
      entitlement to any benefits provided for under Section 4.2(d)
      or
Section 4.3
      by
      seeking other employment nor shall any payment or benefit provided for in such
      Section be reduced by any compensation or remuneration and/or benefits earned
      by
      the Executive as a result of employment by another employer or the rendering
      of
      services after the date of termination.

     

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Section 4.5  Effect
      of Termination

     

    Upon
      termination of his employment for any reason whatsoever, the Executive shall
      thereupon be deemed to have immediately resigned any position the Executive
      may
      have as an officer, director or employee of the Corporation together with any
      other office, position or directorship which the Executive may hold with any
      of
      the Corporation’s affiliates or related entities. In such event, the Executive
      shall, at the request of the Corporation, forthwith execute any and all
      documents appropriate to evidence such resignations. The Executive shall not
      be
      entitled to any payments in respect of such resignations in addition to those
      provided for herein.

     

    Section 4.6  Payment
      Upon Termination

     

    Notwithstanding
      Section 4.2
      and
Section 4.3,
      the
      Executive shall not receive less than that which he is entitled to upon a
      termination of employment in accordance with applicable employment standards
      legislation. The payments referred to in Section 4.2(c)(ii),
      Section 4.2(d)(ii),
      and
Section 4.3(b)
      are
      inclusive of any termination and/or severance payments that may be required
      under employment standards legislation and have been agreed upon with reference
      to the Executive’s length of service with the Corporation.

     

    Section 4.7  Release

     

    The
      Executive agrees that payment by the Corporation of the amounts set out in
      Section 4.2(c),
      Section 4.2(d)
      or
Section 4.3
      shall be
      in full and final settlement of any and all actions, causes of actions, suits,
      claims, demands and entitlements whatsoever which the Executive has or may
      have
      against the Corporation, its affiliates and any of their respective directors,
      officers, employees, representatives, successors and assigns arising out of
      his
      hiring, his employment and the termination of his employment or this
      Agreement.

     

    Section 4.8  Suspension
      or Termination of Benefits and Compensation

     

    In
      the
      event that the Executive has breached any provisions of ARTICLE 5,
      ARTICLE 6,
      ARTICLE 7
      or
ARTICLE 9,
      the
      Corporation shall have the right to suspend or terminate any or all remaining
      payments and/or benefits, if any, referenced in Section 4.2(d)
      and
Section 4.3(b)
      of this
      Agreement, which are over and above the Executive’s entitlements upon
      termination of employment mandated by applicable employment standard
      legislation. Such suspension or termination of payments and/or benefits shall
      be
      in addition to and shall not limit any and all other rights and remedies as
      set
      out in Section 10.2
      of this
      Agreement that the Corporation may have against the Executive.

     

    
      
        
        

      

      
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    ARTICLE 5
      -
      CONFIDENTIAL INFORMATION

     

    Section 5.1  Confidentiality
      

     

    
      	(1)  	
              During
                the term of this Agreement and following the termination thereof,
                the
                Executive shall not use, divulge, diffuse, sell, transfer, give,
                circulate, or otherwise distribute to any Entity whatsoever or whomsoever,
                or otherwise make public, any Confidential
                Information.

            

    

     

    
      	(2)  	
              Notwithstanding
                any provision of this Agreement to the contrary, the Executive shall
                have
                the right to use Confidential Information in relation to the performance
                of his duties, in which event, the Executive shall, at all times,
                take all
                reasonable measures in order to prevent the disclosure or non-authorized
                use of such Confidential
                Information.

            

    

     

    
      	(3)  	
              Except
                when authorized in accordance with the performance of his duties,
                under no
                circumstances shall the Executive reproduce any Confidential Information
                without the prior written consent of the Reporting Officer. All
                reproductions of Confidential Information shall be governed by this
                Agreement and shall be treated as Confidential Information
                hereunder.

            

    

     

    
      	(4)  	
              The
                Executive shall not publish or release or allow the publication or
                release
                of any material containing Confidential Information without the prior
                written consent of the Reporting
                Officer.

            

    

     

    
      	(5)  	
              The
                Executive shall not install, copy or receive any Confidential Information
                into his own or any other computer or computer system not owned and
                controlled by the Corporation, without the express written permission
                of
                the Corporation. Where an Executive has received permission from
                the Board
                of Directors to so install, copy or receive Confidential Information,
                the
                Executive shall be solely responsible to the Corporation for the
                security
                of such Confidential Information and shall follow any and all directions
                given by the Corporation.

            

    

     

    Section 5.2  Corporation
      Property

     

    Confidential
      Information (including any reproduction thereof) shall remain the sole property
      of the Corporation and shall be returned to the Corporation immediately upon
      request or upon the termination of the Executive’s employment, for any
      reason.

     

     

    ARTICLE 6 -
      NON-COMPETITION

     

    Section 6.1  Non-Competition

     

    The
      Executive shall not, during the term of this Agreement and for a period of
      twenty-four
      (24)
      months
      following the termination of his employment, for any reason, on his own behalf
      or on behalf of any Entity, whether directly or indirectly, in any capacity
      whatsoever, alone, through or in connection with any Entity, carry on or be
      engaged in or have any financial or other interest in or be otherwise
      commercially involved in any endeavour, activity or business in all or part
      of
      the Territory which is competitive, in any way, with the Business.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    Section 6.2  Exception

     

    The
      Executive shall, however, not be in default under Section 6.1
      by
      virtue of the Executive holding, strictly for portfolio purposes and as a
      passive investor, no more than one percent (1%) of the issued and outstanding
      shares of or any other interest in, any body corporate which is listed on any
      recognized stock exchange, the business of which body corporate is in
      competition, in whole or in part, with the Corporation.

     

     

    ARTICLE 7
      -
      NON-SOLICITATION

     

    Section 7.1  Non-Solicitation
      of Customers or Employees

     

    The
      Executive shall not, during the term of this Agreement and for a period of
      twenty-four
      (24)
      months
      following the termination of his employment, for any reason, on his own behalf
      or on behalf of or in connection with any other Entity, without the prior
      written consent of the Corporation, directly or indirectly, in any capacity
      whatsoever, alone through or in connection with any Entity: 

     

    
      	(a)  	
              canvass
                or solicit the business of (or procure or assist the canvassing or
                soliciting of the business of) any Customer or Prospective Customer
                or
                customer of the Corporation’s affiliates for any purpose which is
                competitive with the Business; or

            

    

     

    
      	(b)  	
              accept
                (or procure or assist the acceptance of) any business from any Customer
                or
                Prospective Customer or customer of the Corporation’s affiliates which
                business is competitive with the Business;
                or

            

    

     

    
      	(c)  	
              supply
                (or procure or assist the supply of) any goods or services to any
                Customer
                or Prospective Customer or customer of the Corporation’s affiliates for
                any purpose which is competitive with the Business;
                or

            

    

     

    
      	(d)  	
              employ,
                engage, offer employment or engagement to or solicit the employment
                or
                engagement of or otherwise entice away from the employment or engagement
                of the Corporation or any of its affiliates, any individual who is
                employed or engaged by the Corporation or any of its affiliates whether
                or
                not such individual would commit any breach of his contract or terms
                of
                employment or engagement by leaving the employ or the engagement
                of the
                Corporation or any of its affiliates;
                or

            

    

     

    
      	(e)  	
              procure
                or assist any Entity to employ, engage, offer employment or engagement
                or
                solicit the employment or engagement of any individual who is employed
                or
                engaged by the Corporation or any of its affiliates or otherwise
                entice
                away from the employment or engagement of the Corporation or any
                of its
                affiliates any such individual.

            

    

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    ARTICLE 8
      -
      NON-DISPARAGEMENT

     

    Section 8.1  Non-Disparagement

     

    The
      Executive covenants and agrees that he shall not engage in any pattern of
      conduct that involves the making or publishing of written or oral statements
      or
      remarks (including, without limitation, the repetition or distribution of
      derogatory rumours, allegations, negative reports or comments) which are
      disparaging, deleterious or damaging to the integrity, reputation or goodwill
      of
      the Corporation, its affiliates or its and their management.

     

     

    ARTICLE 9
      -
      INTELLECTUAL PROPERTY

     

    Section 9.1  Ownership
      of Intellectual Property

     

    
      	(1)  	
              All
                rights, titles and interests in or to the Developments shall vest
                and are
                owned exclusively by the Corporation immediately on its creation
                and
                regardless of the stage of its completion. The Executive irrevocably
                grants, transfers and assigns to the Corporation all of his right,
                title
                and interest, if any, in any and all Developments, including rights
                to
                translation and reproductions in all forms or formats and all Intellectual
                Property Rights thereto, if any, and he agrees that the Corporation
                may
                copyright said materials in the Corporation's name and secure renewal,
                reissues and extensions of such copyrights for such periods of time
                as the
                law may permit. 

            

    

     

    
      	(2)  	
              At
                all times hereafter, the Executive agrees promptly to disclose to
                the
                Corporation all Developments, to execute separate written transfers
                or
                assignments to the Corporation at the Corporation's request, and
                to assist
                the Corporation in obtaining any Intellectual Property Right in Canada,
                the United States and in any other countries, on any Developments
                granted,
                transferred or assigned to the Corporation that the Corporation,
                in its
                sole discretion, seeks to register. The Executive also agrees to
                sign all
                documents, and do all things necessary to obtain such Intellectual
                Property Rights, to further assign them to the Corporation, and to
                reasonably protect the Corporation against infringement by other
                parties
                at the Corporation’s expense with the Corporation’s prior written
                approval.

            

    

     

    
      	(3)  	
              The
                Executive shall keep complete, accurate, and authentic information
                and
                records on all Developments in the manner and form reasonably requested
                by
                the Reporting Officer. Such information and records, and all copies
                thereof, shall be the property of Corporation as to any Developments
                assigned to the Corporation. The Executive agrees to promptly surrender
                such information and records at the request of the Reporting Officer.
                All
                these materials will be Confidential Information upon their
                creation.

            

    

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    Section 9.2  Moral
      Rights

     

    The
      Executive hereby irrevocably waives, in favour of the Corporation, its
      successors, assigns and nominees, all moral rights arising under the
Copyright
      Act
      (Canada)
      as amended (or any successor legislation of similar effect) or similar
      legislation in any applicable jurisdiction, or at common law, to the full extent
      that such rights may be waived in each respective jurisdiction, that the
      Executive may have now or in the future with respect to the Developments.

     

     

    ARTICLE 10 -
      RECOGNITION

     

    Section 10.1  Recognition

     

    
      	(1)  	
              The
                Executive expressly recognizes that Articles 5, 6, 7 and 9 of this
                Agreement are of the essence of this Agreement, and that the Corporation
                would not have entered into this Agreement without the inclusion
                of the
                said Articles.

            

    

     

    
      	(2)  	
              The
                Executive further recognizes and expressly acknowledges that: (i) the
                application of the Articles 5,
                6, 7, 8 and 9 of this Agreement
                will not have the effect of prohibiting him from earning a living
                in a
                satisfactory manner in the event of the termination his employment
                and of
                this Agreement, and (ii) the Corporation would be subject to an
                irreparable prejudice should one or several of the said Articles
                be
                infringed, or should the Executive be in breach of any of his obligations
                thereunder.

            

    

     

    
      	(3)  	
              The
                Executive further recognizes and expressly acknowledges that the
                Articles
                5,
                6, 7, 8 and 9 of this Agreement
                grant to the Corporation only such reasonable protection as is admittedly
                necessary to preserve the legitimate interests of the Corporation
                and the
                Executive equally recognizes, in this respect, that the description
                of the
                Business is reasonable.

            

    

     

    Section 10.2  Remedies

     

    The
      Executive hereby recognizes and expressly acknowledges that the Corporation
      would be subject to irreparable harm should any of the provisions of Article
      5,
      6, 7 or 9 be infringed, or should any of the Executive's obligations thereunder
      be breached by the Executive, and that damages alone will be an inadequate
      remedy for any breach or violation thereof and that the Corporation, in addition
      to all other remedies, shall be entitled as a matter of right to equitable
      relief, including temporary or permanent injunction to restrain such
      breach.

     

    
      
        
        

      

      
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    ARTICLE 11-
      CONFLICTING OBLIGATIONS

     

    Section 11.1  No
      Conflicting Obligations

     

    The
      Executive represents and warrants to the Corporation that:

     

    
      	(a)  	
              there
                exists no agreement or contract and he is not subject to any obligation,
                which restricts him from (i) being employed by the Corporation; or
                (ii)
                from performing the duties assigned to him pursuant to this Agreement;
                or
                (iii) from soliciting the clients or customers of a third party;
                or (iv)
                from using information within his knowledge or control which may
                be useful
                in the performance of his duties for the
                Corporation;

            

    

     

    
      	(b)  	
              in
                the performance of his duties for the Corporation, he shall not improperly
                bring to the Corporation or use any trade secrets, confidential
                information or other proprietary information of any third party;
                and

            

    

     

    
      	(c)  	
              he
                will not infringe the intellectual property rights of any third
                party.

            

    

     

    Section 11.2  Indemnity

     

    The
      Executive acknowledges that the Corporation has relied upon the representations
      outlined in Section 11.1,
      above.
      The Executive agrees to indemnify and hold the Corporation, its directors,
      officers, employees, agents and/or consultants harmless against any and all
      claims, liabilities, losses, damages, costs, fees and/or expenses including
      reasonable legal fees incurred by the Corporation, its directors, officers,
      employees, agents and/or consultants by reason of an alleged violation by the
      Executive of any of the representations contained in Section 11.1
      of this
      Agreement.

     

     

    ARTICLE 12
      -
      GENERAL

     

    Section 12.1  Notice
      Provisions

     

    Except
      as
      otherwise expressly provided herein, all notices relating to this Agreement
      shall be in writing and either delivered by hand, courier service or facsimile
      transmission and addressed as follows:

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    The
      Executive: Stephen
      Tapp

    
      	 	 	            [Address]  	
               

            

    

    
      	 	 	 	 	 

    

    
      	 	 	 	 	 

    

    The
      Corporation: 161
      Bay
      Street

    
      	 	 	
            	
              BCE
                Place, Suite 2300

            

    

    
      	 	 	 	
              Toronto,
                Ontario M5J 2S1 

            

    

     

    Attention:
       Chief
      Executive Officer

     

    Any
      address referred to in this Section 12.1
      may be
      changed by notice given in accordance with the provisions of this Section.
      Any
      notice which is delivered by hand, courier service or facsimile transmission
      shall be effective when delivered. 

     

    Section 12.2  Entire
      Agreement

     

    This
      Agreement contains the entire agreement between the Corporation (or its
      affiliates) and the Executive and supersedes all previous negotiations,
      understandings and agreements whether verbal or written, with respect to the
      terms and conditions of employment between the Corporation and the Executive,
      including without limitation, the employment agreement between the Executive
      and
      Canadian Satellite Radio Inc. dated September 7, 2004.

     

    Section 12.3  Survival

     

    It
      is
      expressly agreed by the parties hereto that the provisions of Articles 4, 5,
      6,
      7, 8, 9, 10, 11 and 12 shall survive the termination of this Agreement and
      the
      termination of the Executive’s employment, for any reason.

     

    Section 12.4  Privacy

     

    By
      accepting employment with the Corporation, the Executive consents to the
      Corporation collecting, using and disclosing his personal information for
      purposes relating to the maintenance of the employment relationship. The
      purposes of the Corporation’s collection, use and disclosure include, but are
      not limited to:

     

    
      	(a)  	
              ensuring
                that the Executive is properly remunerated for his services to the
                Corporation which shall include disclosure to third party payroll
                providers;

            

    

     

    
      	(b)  	
              administering
                and/or facilitating the provision of any benefits to which the Executive
                is or may become entitled, including bonuses, benefits, pensions,
                registered retirement savings plan, short, medium and long-term incentive
                plans; this shall include the disclosure of the Executive’s personal
                information to the Corporation’s third party service providers and
                administrators;

            

    

     

    
      	(c)  	
              ensuring
                that the Corporation is able to comply with any regulatory, reporting
                and
                withholding requirements relating to the Executive’s
                employment;

            

    

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	(d)  	
              performance
                and promotion;

            

    

     

    
      	(e)  	
              monitoring
                the Executive’s access to and use of the Corporation’s electronic media
                services in order to ensure that the use of such services is in compliance
                with the Corporation’s policies and procedures and is not in violation of
                any applicable laws; 

            

    

     

    
      	(f)  	
              complying
                with the Corporation’s obligations to report improper or illegal conduct
                by any director, officer, employee or agent of the Corporation under
                any
                applicable securities, criminal or other law;
                and

            

    

     

    
      	(g)  	
              any
                other purpose for which the Executive is given notice and which is
                reasonably related to the maintenance of the Executive’s employment
                relationship.

            

    

     

    If
      the
      Executive’s specific consent to the collection, use or disclosure of his
      personal employee information is required under applicable law, the Executive
      hereby agrees to provide such consent. If the Executive refuses or withdraws
      his
      consent, the Executive acknowledges that his employment with the Corporation
      may
      be negatively affected.

     

    Section 12.5  Governing
      Law

     

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

     

    Section 12.6  Successors
      and Assigns

     

    This
      Agreement may not be assigned by the Executive. This Agreement and the rights
      and obligations hereunder may, without the further express consent of the
      Executive, be assigned by the Corporation to any Entity which succeeds to all
      or
      substantially all of the business, assets or property of the
      Corporation.

     

    Section 12.7  Execution
      of Further Documents

     

    The
      Corporation and Executive agree that they shall, from time to time and at all
      times, do all such further acts and execute and deliver all such further
      documents and assurances as shall be reasonably required in order to fully
      perform and carry out the terms of this Agreement.

     

    Section 12.8  Amendments
      and Waivers

     

    No
      supplement, modification, amendment or waiver of this Agreement shall be binding
      unless executed in writing by the Executive and the Corporation. No waiver
      of
      any of the provisions of this Agreement shall be deemed to constitute a waiver
      of any other provision (whether or not similar), nor shall such waiver
      constitute a waiver or continuing waiver unless otherwise expressly provided
      in
      writing duly the party to be bound thereby. 

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Section 12.9  Severability

     

    In
      the
      event that any provision or any part of any provision hereof is deemed to be
      invalid by reason of the operation of any law or by reason of the interpretation
      placed thereon by a court, this Agreement shall be construed as not containing
      such provision or part of such provision and the invalidity of such provision
      or
      such part shall not affect the validity of any other provision or the remainder
      of such provision hereof. All other provisions hereof which are otherwise lawful
      and valid shall remain in full force and effect.

     

    Section 12.10  Legal
      Advice

     

    The
      Executive acknowledges that he has been afforded the opportunity to obtain
      independent legal advice with respect to this Agreement and that he fully
      understands the nature and consequences of this Agreement. 

     

    Section 12.11  Currency

     

    All
      amounts expressed herein are in Canadian
      dollars
      unless otherwise noted and all payments hereunder are subject to all applicable
      and required deductions.

     

    Section 12.12  Preamble/Recital

     

    The
      Executive and the Corporation acknowledge and agree that the provisions
      contained in the preamble/recital section of this Agreement shall form part
      of
      this Agreement and may be relied upon by either party.

     

    Section 12.13  Counterparts

     

    This
      Agreement may be executed by the parties in one or more counterparts, each
      of
      which when so executed and delivered shall be deemed to be an original and
      such
      counterparts shall together constitute one and the same instrument.

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF
      the
      parties have caused this Agreement to be executed as of the effective date
      first
      above written.

     

    
      	 	 	 
	 	
              CANADIAN
                SATELLITE RADIO INC.

            
	 
 	 
 	 
 
	
               

               

            	Per:  	/s/ John
              I. Bitove 
              
John
              I. Bitove 
	 	 
	 	
            

    

     

    
      	 	 	 
	 	 
	 
 	 
 	 
 
	
               

              /s/ Stewart Lyons

            	        
                	
               

              /s/  Stephen
                Tapp

            
	
              
Stewart
              Lyons	
              
Stephen
              Tapp
	(Witness)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]