Document:

Exhibit 10.17

 

SCHEDULE “A”

 

EMPLOYEE SHARE PURCHASE PLAN

(“ESPP”)

 

JUMPTV, INC.

 

SECTION 1:
PURPOSE OF ESPP

 

The
purpose of the ESPP is to provide an opportunity to certain employees of JumpTV
to acquire or augment an ownership interest in the Company.  Employees are encouraged to participate in
the ESPP by allowing Employees to purchase shares at a discount.  In addition, the Company assists Employees to
acquire Shares through the convenience of payroll deductions, by providing
other administrative services and by assuming certain operating costs of the
ESPP.  Contribution from the Employees
participating in the ESPP are remitted to the Administrator appointed by the
Company for the acquisition and distribution of Shares on behalf of the
Employees, in accordance with the terms and provisions of the ESPP as described
herein.

 

SECTION 2:
DEFINITIONS

 

2.1           “Administrator”
shall mean an entity appointed by the Company to purchase, hold and distribute
Shares in accordance with the terms and provisions of the ESPP and the
Memorandum of Agreement.  The Memorandum
of Agreement shall be deemed to form part of the ESPP, and any of the rights or
interests that may accrue to any person under the ESPP shall be subject to all
the terms and provisions of the Memorandum of Agreement.  The duties, responsibilities and rights of
the Administrator shall be determined solely by the reference to the Memorandum
of Agreement.

 

2.2           “Beneficiary”
shall, save for any Member domiciled in the Province of Quebec at the time of
death, mean a person last designated by a Member in writing and filed with the
Company to receive share distributions from the Administrator in the event of
the death of the Member.  In the absence
of an effective designation of a Beneficiary and in respect of Members
domiciled in the Province of Quebec at the time of death, the share
distributions from the Administrator following the death of the Member shall be
made to the estate of the deceased Member.

 

2.3           “Board”
shall mean the Board of Directors of JumpTV Inc.

 

2.4           “Company”
shall mean the corporate employer of the Employee or Employees concerned
encompassing JumpTV Inc. and all of its subsidiary companies from time to time.

 

2.5           “Effective
Date” shall mean July 1, 2008, or such other subsequent date as described
in the Memorandum of Agreement.

 

2.6           “Employee”
shall mean any designated person regularly employed by the Company having a
classification at a Director level or above.

 

2.7           “Member”
shall mean an Employee who has elected to participate in the ESPP in accordance
with the provisions of Section 3.

 

2.8           “Memorandum
of Agreement” shall mean the agreement between the Company and the
Administrator with respect to the duties, responsibilities and rights of the
Administrator in connection with the ESPP.

 

2.9           “ESPP”
shall mean this Employee Share Purchase Plan of JumpTV Inc. and its
subsidiaries, as described herein or as hereinafter amended.

 

2.10         “Salary”
shall mean the remuneration paid to an Employee for services rendered to the
Company, excluding bonuses, overtime pay and fringe benefits, but including
sales commissions.

 

 

2.11         “Share” shall mean the common shares of JumpTV Inc.

 

Whenever
used in the ESPP, unless the context otherwise clearly indicates, words in the
masculine form shall be deemed to include the feminine and the singular shall
be deemed to include the plural.

 

SECTION 3:
MEMBERSHIP

 

3.1           Subject
to this section, an Employee shall be eligible to become a member of the ESPP
upon the later of the Effective Date or the completion of six months of continuous
service as an Employee of the Company.

 

3.2           An
Employee who is eligible for membership in the ESPP and wishes to become a
Member thereof shall complete and file with the Company at least 15 days prior
to the first day of the calendar month elected by him or her as the effective
date of participation in the ESPP, a payroll deduction authorization in a form
approved by the Company.

 

3.3           In
the event that an Employee does not meet the requirements of Section 3.2,
his or her effective participation date shall be the first day of the month
following his or her elected month.

 

3.4           An
Employee may, at the Company’s sole discretion, participate in the ESPP without
completing the eligibility requirement in Section 3.1, with the approval
of the Company and by completing and filing the payroll deduction authorization
form in accordance with Section 3.2 or 3.3.

 

SECTION 4: CONTRIBUTIONS

 

4.1           Members
participating in the ESPP may make contributions, by payroll deduction only, at
a rate of not less than 10% of Salary or such other integer percentage rate up
to and including 100% of Salary as such Member shall elect.

 

4.2           A
Member may elect to change his/her rate of contribution as defined in Section 4.1
hereof, effective for subsequent payroll deductions by completing and filing a
revised payroll deduction authorization form at least 15 days prior to the date
on which the revised payroll deduction rate is to be effective, provided,
however, that Members may not be entitled to change their rates of contribution
more than once during each fiscal quarter of the Company.

 

4.3           A
Member may suspend participation in the ESPP provided proper notice in writing
is filed with the company at least 15 days prior to the first of the month in
which payroll deductions are to be suspended.

 

4.4           A
Member who has suspended his contributions may apply to the Company to have
them resumed in accordance with Section 4.1 effective upon the
commencement of the next fiscal quarter of the company, provided that the
Member provides at least 15 days written notice of such intent.

 

4.5           A
Member may request that his or her payroll deductions and Shares be held in a
non-registered or Registered Retirement Savings ESPP or equivalent tax-free
governmental approved savings account (if and when available) of the
Administrator.  To the extent that
Employees are subject to the taxation laws of countries other than Canada that
do not permit the tax-free earning of interest and capital gains, then Members
may only have their payroll deductions and Shares held in a non-registered
account of the Administrator.

 

SECTION 5: PURCHASE OF SHARES

 

5.1           The
Company will remit payroll deductions from Members to the Administrator on a
monthly basis.

 

5.2           The
Administrator will purchase Shares from treasury of the Company.  The purchase price will be the 10 day volume
weighed average price of the Shares traded on the Toronto Stock Exchange less
15%.

 

 

5.3           The
purchased Shares will be credited to an account maintained for the Member by
the Company directly, through a registered securities dealer or through the
Administrator.

 

5.4           Dividends
received by the Administrator on shares held will be allocated to the accounts
of the Members in proportion to the Shares held by the Administrator for each
Member on which dividends are declared and received and such dividends will be
applied to the purchase of additional Shares (except in the case of “stock
dividends” which shall be credited directly to the accounts of respective
Members) and such Shares will be credited to the accounts of respective
Members, such allocation to be made pro rata (to the sixth decimal place) on
the basis of the average cost per Share purchased by the dividends and the
dividends allocated to each Member used to purchase the Shares.

 

5.5           All
warrants, options or rights received by the Administrator on any Shares held
pursuant to the Plan shall be sold by the Administrator on behalf of the
Members.  The proceeds from the sale of
any options, rights or warrants and any dividends received by the Administrator
for Shares held pursuant to the Plan shall be used to purchase additional
Shares.

 

5.6           In
the event that, at any time, an offer to purchase is made to all holders of
Shares, notice of such offer shall be given by the Administrator to each Member
to enable a Member to tender his or her Shares should he or she so desire.

 

5.7           In
the event that the Shares are subdivided, consolidated, converted or
reclassified by the Company, or any action of a similar nature affecting such
Shares shall be taken by the Company then the Shares held by the Administrator
for the benefit of the Members shall be appropriately adjusted.

 

SECTION 6: SHARES SUBJECT TO THE ESPP

 

6.1           A
maximum of 2,000,000 authorized but unissued Shares are reserved for issuance
under the ESPP form treasury of the Company provided that the aggregate of the
listed issuer’s securities;

 

i)              issued to insiders of the listed issuer,
within any one year period, and

ii)             issuable to insiders of the listed issuer, at
any time,

 

under
the ESPP, or when combined with all of the Company’s other security based
compensation arrangements, could not exceed 10% of the Company’s total issued
and outstanding securities.

 

6.2           The
outstanding issue for purposes hereof shall be determined on the basis on the
number of Shares that are outstanding immediately prior to the issuance of the
Shares in question, excluding Shares issued pursuant to any Share compensation
arrangements of the Company over the preceding one year period.

 

6.3           The
terms “insider” and “share compensation arrangement” shall have the meaning
given in the Toronto stock Exchange policies relating to Employee Stock Option
Plans.

 

SECTION 7:
 SALE OF SHARES

 

7.1           A
Member may determine, from time to time, to sell all or part of the Shares
credited to his account.  Such Member
shall complete and file such forms and notices as the Administrator may require
in association with such determination.

 

7.2           The
Administrator shall sell such number of Shares as requested by the Member, upon
receipt of the notice referred to in subsection 7.1 hereof, in such a manner
as, in its discretion, it deems to be in the interest of the Members of the
ESPP.

 

7.3           The
product of the sale, less any brokerage fees, will be paid in cash by cheque to
the Member, or deposited to the Member’s account with the Administrator.

 

 

SECTION 8:  TERMINATION OF
MEMBERSHIP

 

8.1           The
Administrator will hold the Shares credited to a Member’s account for the whole
period of participation of such Member in the ESPP.

 

8.2           A
Member who terminates employment (with or without cause at law), retires or
otherwise elects to withdraw from participation in the ESPP, or, the
Beneficiary in the event of the Member’s death, shall receive, subject to
applicable withholding taxes:

 

(a)   the number of whole Shares credited to his or her account, or

(b)   the cash equivalent of the value of the whole Shares to his or her
account, less any brokerage fees, as determined by the Administrator, as of the
date of termination of employment, retirement, death or withdrawal from the
ESPP, whichever the case may be.  Any
fractional Shares remaining in the Member’s account will be paid in cash by
cheque in an amount equal to the value of the fractional Shares as determined
by the Administrator.

 

8.3           A
Member who terminates employment (with or without cause) may, upon notice to
the Company, request that all or a portion of the Shares in the Member’s
account be transferred to his or her name, or an external account in his or her
name, or be sold or, where the Member holds Shares in a registered retirement
plan, that all or a portion of the Shares in that Member’s registered
retirement plan be transferred to, be sold and the proceeds transferred to
another registered retirement plan in the Member’s name, or be sold and the
proceeds, net of withholding tax, be remitted to the Member.  Any fractional Shares credited to the Member’s
account shall be disregarded on any sale or transfer and the Member shall be
entitled to receive the cash equivalent thereof.

 

SECTION 9:
ADMINISTRATION

 

9.1           The
Company shall be responsible for carrying out the administration of the ESPP
and shall establish rules from time to time for the administration of the
ESPP and shall establish rules from time to time for the administration of
the ESPP.  The Company shall be
responsible for the interpretation and determination of any and all questions
regarding the provisions of the ESPP.

 

9.2           The
Company may authorize one or more of their number or an agent to execute and to
deliver any instrument pertaining to the operation of the ESPP.

 

9.3           The
Company may retain counsel, employ agents and provide for such clerical,
accounting and other services as they may require in carrying out the
provisions of the ESPP.

 

9.4           Any
act which the ESPP authorizes or requires the Company to do may be done by a
majority of members of the Board.  The
action of such majority expressed from time to time by a vote at a meeting or
in writing without a meeting shall constitute the action of the Company and it
shall have the same effect for all purposes as if assented to by all members of
the Company at the time in office.

 

9.5           The
members of the Company shall use ordinary care and diligence in the performance
of their duties, but no member of the Board shall be personally liable by
virtue of any contract, agreement, bond or other instrument made or executed by
him or on his behalf as a member of the Board, nor for any loss unless
resulting from his own gross negligence or willful misconduct.

 

9.6           The
Company shall be responsible for the payment of any fees or charges incurred in
the operation of the ESPP, including payments to the Administrator, counsel and
other agents employed by the Company in connection with the operation of the
ESPP.  The Company will reimburse the
Administrator for brokerage fees arising from purchases of Shares, stock
transfer taxes, and charges in connection with services provided in the
operation of the ESPP.  The Member shall
be responsible for any brokerage fees payable upon the sale of his Shares.

 

 

9.7           The
Company shall be entitled to rely conclusively upon an opinion, a certificate,
or report provided by a legal counsel, an accountant, the Administrator or any
other advisors appointed and engaged by the Company in connection with the
administration of the ESPP.

 

9.8           The
Company shall cause to be kept all data and records pertaining to the
administration of the ESPP, and the Secretary of the Board may execute all
documents necessary to carry out the provisions of the ESPP.  The Company shall advise the Administrator as
to data, information, and other facts, and shall give proper instructions to
the Administrator to enable the Administrator to carry out its duties and
responsibilities under the ESPP.

 

9.9           Each
Member of the ESPP will receive a regular, periodic statement of his own contributions
and Company contributions on his behalf to the ESPP, the dividends paid to him
or credited to his account, the purchase of Shares including fractional Shares
and the average share cost of Shares purchased to date held by the
Administrator.  In addition, Members of
the ESPP will receive copies of all reports, proxy statements and other
communications distributed to registered shareholders, to the extent that such
Members participating in the ESPP do not otherwise receive such material as
shareholders.

 

SECTION 10: AMENDMENTS

 

10.1         The
Board shall have the power and authority, without notice or shareholder
approval, at any time and from time to time, to suspend or terminate the ESPP
and to establish the rules and regulations relating to the ESPP and to
make all determinations necessary or advisable for administration of the
ESPP.  Without limiting the foregoing,
the Board shall have the authority to amend the ESPP as follows without seeking
shareholder approval:

 

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

(b)   an amendment to correct or rectify any ambiguity, defective provision,
error or omission in the ESPP;

(c)   an amendment to change the provisions relating to the administration of
the ESPP; and

(d)   to make any other amendment to the ESPP that does not require
shareholder approval by virtue of the provisions of the ESPP, applicable laws
or relevant regulatory or stock exchange requirements.

 

Any
amendment of the ESPP to increase the maximum number of Shares issuable under
the ESPP shall become effective only upon shareholder approval thereof, such
approval to be obtained in accordance with applicable corporate and securities
laws and the rules of the stock exchanges on which the Corporation’s
Shares are listed.

 

SECTION 11:
TERMINATION OF THE ESPP

 

11.1         The
Board reserves the right to terminate the ESPP at any time with such
termination to be effective no earlier than the first day of the calendar month
next following the adoption of the resolution by the Board to terminate the
ESPP.  In the event of termination of the
ESPP, each Member shall receive the number of whole Shares in his account and a
cash payment by cheque for any fractional Shares held in his account, as soon
as practicable following the effective date of termination of the ESPP.

 

SECTION 12:
EMPLOYEES OF COMPANIES CEASING TO BE SUBSIDIARIES

 

12.1         Each
Employee of a subsidiary company shall, upon such company ceasing to be a
subsidiary, cease to be a Member of the ESPP and will receive the number of
whole Shares in his account and a cash payment by cheque for any fractional
shares held in his account as soon as practicable following such Employee
ceasing to be a Member of the ESPP.

 

 

SECTION 13:  GENERAL
PROVISIONS

 

13.1         The
establishment of the ESPP shall not be construed as conferring any legal rights
upon any Employee for a continuation of employment or interfering in any way
with the rights of the Company to discharge any Employee and without regard to
the effect which such discharge might have upon him as a Member of the ESPP.

 

13.2         Each
Member and any other person who has a right to a distribution under the ESPP
shall be entitled to look only to the Administrator for any settlement under the
ESPP, and shall not have any right, claim or demand against the Company for any
settlement under the ESPP.

 

13.3         Any
person dealing with the Administrator may rely upon a copy of the ESPP and the
Memorandum of Agreement and any amendment thereto certified by the Secretary of
the Board to be a true and correct copy.

 

13.4         The
ESPP shall be construed and the rights and obligations of the parties
thereunder determined in accordance with the laws of the Province of Ontario.Exhibit
10.18

 

PERSONAL AND CONFIDENTIAL

 

As of

 

Dear                            ,

 

JumpTV Inc. (“JumpTV” or the “Company”) has
granted you Stock Appreciation Rights (“SARs”) that enable you to purchase
common shares of JumpTV.

 

The SARs will vest immediately, as described
in the chart below and will expire on                     if not exercised sooner.

 

	
  Number of SARs

  Granted

  	
   

  	
  Grant Date

  	
   

  	
  Exercise

  Price

  	
   

  	
  Vesting Period

  	
   

  	
  Expiration

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

You are entitled to exercise any SARs that
have fully vested.  SARs may not be
exercised in amounts less than 100 Shares unless it entirely exhausts your
remaining SARs balance and for any resulting fractional shares you will receive
a payment in cash based on the difference between the then-current applicable
stock price and the exercise price.

 

Attached to this letter is a copy of the Company’s
current Stock Appreciation Rights Plan.  This
plan document governs all aspects of the above granted SARs.

 

Kindly acknowledge receipt of this letter by signing
below and returning a copy to me at your earliest convenience.

 

Yours truly,

 

 

	
  Arthur J. McCarthy

  	
   

  	
   

  
	
  Chief Financial Officer,
  JumpTV Inc.

  	
   

  	
   

  

 

Acknowledgement by:

 

 

	
   

  	
   

  	
   

  
	
  [Name]

  	
   

  	
         Date

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