Document:

Exhbit 10.1

 

PERFORMANCE UNIT AWARD AGREEMENT

 

Non-transferable

GRANT TO

 

«Full Name»

(“Grantee”)

 

by Sally Beauty Holdings, Inc. (the “Company”) of

 

performance units (the “Performance Units”) representing the right to earn, on a one-for-one basis, shares of the Company’s common stock, par value $0.01 pursuant to and subject to the provisions of the Sally Beauty Holdings, Inc. Amended and Restated 2010 Omnibus Incentive Plan (the “Plan”) and to the terms and conditions set forth on the following pages (the “Terms and Conditions”).  By accepting the Performance Units, Grantee shall be deemed to have agreed to the Terms and Conditions set forth in this Award Agreement and the Plan.

 

The target number of shares of Common Stock subject to this award is «PRSU» (the “Target Award”).  Depending on the Company’s level of attainment of specified targets for Sales Growth for the three-year performance period commencing on October 1, 2015 and ending on September 30, 2018 and FY 2018 Return on Invested Capital (as such terms are defined in this Award Agreement), and Grantee’s continued service with the Company or a Subsidiary, Grantee may earn 0% to 200% of the Target Award, in accordance with the matrices attached hereto as Exhibit A and the terms of this Certificate.

 

IN WITNESS WHEREOF, Sally Beauty Holdings, Inc. has caused this Award Agreement to be executed as of the Grant Date, as indicated below.

 

 

	
 
    	
SALLY   BEAUTY HOLDINGS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
Christian   A. Brickman
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
President,   Chief Executive Officer & Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Grant   Date: October 28, 2015
    	
 
    

 

2010 OMNIBUS INCENTIVE PLAN - PUA

(UNITED STATES)

 

 

TERMS AND CONDITIONS

 

1.              Defined Terms.  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.  In addition, for purposes of this Certificate:

 

“Sales Growth” means the “compounded annual growth rate” over the Performance Period of the Corporation’s Sales, represented as a percentage, and measured as follows:

 

 

“Confirmed Performance Units” is defined on Exhibit A hereto.

 

“Conversion Date” is defined in Section 6 hereof.

 

“Invested Capital” for a fiscal year means the monthly average for that year of the Corporation’s (a) total assets less (i) excess cash and investments, (ii) income tax-related assets and (iii) debt-related assets less (b) total liabilities less (i) total debt, (ii) income tax-related liabilities and (iii) debt-related accrued expenses.

 

“Net Operating Profit” for a fiscal year means net earnings plus (i) interest expense, and (ii) income taxes.

 

“Net Operating Profit Less Adjusted Taxes (NOPLAT)” means (x) Net Operating Profit for the fiscal year multiplied by (y) (1- the Corporation’s effective tax rate for such fiscal year).

 

“Performance Multiplier” means the percentage, from 0% to 200%, that will be applied to the Target Award to determine the number of Performance Units that will convert to shares of Common Stock on the Conversion Date, as more fully described in Exhibit A hereto.

 

“Performance Objectives” are FY 2018 ROIC and Sales Growth for the Performance Period, as more fully described in Exhibit A hereto.

 

“Performance Period” means the fiscal years of the Company beginning on October 1, 2015 and ending on September 30, 2018.

 

“FY 2018 Return on Invested Capital (ROIC)” means (x) NOPLAT divided by (y) Invested Capital, measured as of September 30, 2018.

 

“Sales” for a fiscal year means the Company’s annual “Net Sales,” as reported in the Company’s audited financial statements (adjusted for currency fluctuations and acquisitions purchased for than $20 million)

 

 

2.              Performance Units.

 

(a)         Conversion Date. The Performance Units have been credited to a bookkeeping account on behalf of Grantee.  The Performance Units will be earned in whole, in part, or not at all, on the Conversion Date to the extent that the Performance Objectives are attained, as provided on Exhibit A attached hereto.  Any Performance Units that fail to vest in accordance with the terms of this Award Agreement will be forfeited and reconveyed to the Company without further consideration or any act or action by Grantee.

 

(b)         Forfeiture of Performance Units.  If Grantee terminates service with the Company and its Subsidiaries prior to the Conversion Date for any reason other than as set forth in Section 2(c) or (d) hereof, then the Grantee shall, for no consideration, forfeit all Performance Units.

 

(c)          Death or Disability.  If, as a result of Grantee’s death or Disability, Grantee terminates service with the Company and its Subsidiaries prior to the Conversion Date, then, provided Grantee has provided continuous, eligible service to the Company from the Grant Date until Grantee’s death or Disability, Grantee or, as the case may be, Grantee’s estate, shall retain a portion of the Performance Units determined by multiplying the total number of Performance Units awarded under this Award Agreement by a fraction, the numerator of which is the number of days elapsed from the commencement of the Performance Period through the date of Grantee’s termination of service, and the denominator of which is the number of days in the Performance Period (the “Retained Death/Disability Award”), and the remainder of the Performance Units shall be forfeited and canceled as of the date of Grantee’s termination of service.  The Retained Death/Disability Award shall be earned, in whole, in part, or not at all, on the Conversion Date to the extent that the Performance Objectives are attained, as provided on Exhibit A attached hereto.

 

(d)         Retirement.  If Grantee’s service with the Company is terminated as a result of his or her Retirement and Grantee agrees to be bound by certain restrictive covenants (including non-competition, non-solicitation, non-disclosure and non-disparagement covenants as determined in the sole discretion of the Company) (“Restrictive Covenants”), for the three-year period following his or her Retirement, then provided Grantee has provided continuous, eligible service to the Company from the Grant Date until Grantee’s Retirement, Grantee shall retain a portion of the Performance Units determined by multiplying the total number of Performance Units awarded under this Award Agreement by a fraction, the numerator of which is the number of days elapsed from the commencement of the Performance Period through the date of Grantee’s termination of service by reason of his or her Retirement, and the denominator of which is the number of days in the Performance Period (the “Retained Retirement Award”), and the remainder of the Performance Units shall be forfeited and canceled as of the date of Grantee’s termination of service.  The Retained Retirement Award shall be earned, in whole, in part, or not at all, on the Conversion Date to the extent that the Performance Objectives are attained, as provided on Exhibit A attached hereto.  If, in the sole discretion of the Committee, Grantee violates one of the Restrictive Covenants during the three-year period following Grantee’s Retirement, then all Performance Units shall be immediately forfeited and cancelled as of the date of such violation.  If Grantee’s service with the Company is terminated as a result of his or her Retirement and Grantee does not agree to be bound by Restrictive Covenants, then the Performance Units shall be immediately forfeited and cancelled as of the date of Grantee’s termination of service.

 

(e)          Change in Control.  Unless the Committee otherwise determines as provided in Section 9.2 of the Plan, upon the occurrence of a Change in Control prior to the Conversion Date, the Performance Units shall be canceled upon the Change in Control in exchange for an amount equal to the product of (A) the Change in Control Price (as defined in the Plan), multiplied by (B) the target number of Performance Units awarded under this Award Agreement.

 

3.              Restrictions on Transfer and Pledge.  Unless otherwise determined by the Committee and provided in this Award Agreement or the Plan, the Performance Units shall not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred except by will or the laws of descent and distribution.  Any attempted assignment of a Performance Unit in violation of this Award Agreement shall be null and void.  The Company shall not be required to honor the transfer of any Performance Units that have been sold or otherwise transferred in violation of any of the provisions of this Award Agreement or the Plan.

 

 

4.              Rights.  Performance Units represent an unsecured promise of the Company to issue shares of Common Stock of the Company as otherwise provided in this Award Agreement.  Other than the rights provided in this Award Agreement, Grantee shall have no rights of a stockholder of the Company with respect to the Performance Units awarded under this Award Agreement unless and until such Performance Units have vested and the related shares of Common Stock have been issued pursuant to the terms of this Award Agreement.  Upon conversion of the Performance Units into shares of Common Stock, Grantee will obtain full voting and other rights as a stockholder of the Company.

 

5.              Dividend Equivalents.  If any dividends or other distributions are paid with respect to the shares of Common Stock while the Performance Units are outstanding, the dollar amount or fair market value of such dividends or distributions with respect to the number of shares of Common Stock then underlying the Performance Units shall be credited to a bookkeeping account and held (without interest) by the Company for the account of Grantee until the Conversion Date.  Such amounts shall be subject to the same vesting and forfeiture provisions as the Performance Units to which they relate.  Accrued dividends held pursuant to the foregoing provision shall be paid by the Company to Grantee on the Conversion Date, provided that Grantee has provided continuous, eligible service to the Company through the Conversion Date.

 

6.              Conversion to Common Stock.  Unless the Performance Units are forfeited prior to the Conversion Date, the Confirmed Performance Units will convert to shares of Common Stock on the sixtieth (60th) calendar day following the last day of the Performance Period (the “Conversion Date”) provided that the Committee has certified performance results as specified on Exhibit A attached hereto, and provided, further, that that Grantee has provided continuous, eligible service to the Company through the Conversion Date.  Evidence of the issuance of the shares of Common Stock pursuant to this Award Agreement may be accomplished in such manner as the Company or its authorized representatives shall deem appropriate including, without limitation, electronic registration, book-entry registration or issuance of a certificate or certificates in the name of the Grantee or in the name of such other party or parties as the Company and its authorized representatives shall deem appropriate. In the event the shares of Common Stock issued pursuant to this Award Agreement remain subject to any additional restrictions, the Company and its authorized representatives shall ensure that the Grantee is prohibited from entering into any transaction that would violate any such restrictions, until such restrictions lapse.

 

7.              Community Interest of Spouse.  The community interest, if any, of any spouse of the Grantee in any of the Performance Units shall be subject to all of the terms, conditions and restrictions of this Award Agreement and the Plan, and shall be forfeited and surrendered to the Company upon the occurrence of any of the events requiring the Grantee’s interest in such Performance Units to be so forfeited and surrendered pursuant to this Award Agreement.

 

8.              Tax Matters.

 

(a)         Grantee acknowledges that the tax consequences associated with the Award are complex and that the Company has urged Grantee to review with Grantee’s own tax advisors the federal, state, and local tax consequences of this Award.  Grantee is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  Grantee understands that Grantee (and not the Company) shall be responsible for Grantee’s own tax liability that may arise as a result of this Award Agreement.

 

(b)         The Company or any Subsidiary employing Grantee has the authority and the right to deduct or withhold, or require Grantee to remit to the employer, an amount sufficient to satisfy federal, state, and local taxes (including Grantee’s FICA obligation) required by law to be withheld with respect to any taxable event arising as a result of the vesting or settlement of the Performance Units.  The withholding requirement shall be satisfied by withholding from the settlement of the Performance Units shares of Common Stock having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount)

 

 

required to be withheld for tax purposes, all in accordance with such procedures as the Company establishes.  The obligations of the Company under this Certificate will be conditional on such payment or arrangements, and the Company and, where applicable, its Subsidiaries will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to Grantee.

 

9.              Restrictions on Issuance of Shares of Common Stock.  If at any time the Committee shall determine in its discretion, that registration, listing or qualification of the shares of Common Stock covered by the Performance Units upon any securities exchange or under any foreign, federal, or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition to the settlement of the Performance Units, the Performance Units may not be settled in whole or in part unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

 

10.       Plan Controls.  The terms contained in the Plan are incorporated into and made a part of this Award Agreement and this Award Agreement shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Award Agreement, the provisions of the Plan shall be controlling and determinative.

 

11.       No Right to Continued Service.  Nothing in this Award Agreement shall interfere with or limit in any way the right of the Company or any Subsidiary to terminate Grantee’s employment or service at any time, nor confer upon Grantee any right to continue in employment or service of the Company or any Subsidiary.

 

12.       Successors.  This Award Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Award Agreement and the Plan.

 

13.       Notice.  Notices hereunder must be in writing, delivered personally or sent by registered or certified U.S. mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to Sally Beauty Holdings, Inc., 3001 Colorado Boulevard, Denton, TX 76210, Attn: Secretary, or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.

 

14.       Amendments and Modifications.  The Committee or its designee may, in the Committee’s or the designee’s sole and absolute discretion, as applicable, amend or modify this Award Agreement in any manner that is either (i) not adverse to Grantee, or (ii) consented to by Grantee.

 

15.       Compensation Recoupment Policy.  This Award Agreement shall be subject to the terms and conditions of any compensation recoupment policy adopted from time to time by the Board or any committee of the Board, to the extent such policy is applicable.

 

IN WITNESS WHEREOF, the Company has caused this Award Agreement to be duly executed by an authorized officer as of the date first above written.

 

	
 
    	
SALLY   BEAUTY HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Matthew Haltom
    
	
 
    	
 
    	
 
    
	
 
    	
Title: 
    	
Sr Vice President,   General Counsel & SecretaryEnertopia Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

ENERTOPIA CORPORATION 

NOTICE OF GRANT 

Capitalized but otherwise undefined terms in this Notice of
Grant and the attached Stock Option Agreement shall have the same defined
meanings as in the 2014 Stock Option Plan.

	Name: 	 
	 	 
	Address: 	 

You have been granted an option (the “Option”) to
purchase Common Stock of the Corporation, subject to the terms and conditions of
the Plan and the attached Stock Option Agreement, as follows: 

	 	Date of Grant: 	 
    
	 	 	 
	 	Vesting Commencement Date: 	 
    
	 	 	 
	 	Option Price per Share: 	 
    
	 	 	 
	 	Total Number of Shares Granted: 	 
    
	 	 	 
	 	Total Option Price: 	 
    
	 	 	 
	 	Type of Option: 	______________ Incentive Stock Option 
	 	 	 
	 	  	______________ Nonqualified Stock Option 
	 	 	 
	 	Term/Expiration Date: 	____________________ years after Date of Grant
    

Vesting Schedule: 

The Option shall vest, in whole or in part, in accordance with
the following schedule: 

[insert vesting schedule OR N/A] 

ENERTOPIA CORPORATION 

2014 Stock Option Plan 

STOCK OPTION AGREEMENT 

This STOCK OPTION AGREEMENT (“Agreement”), dated
as of the ______________ day of ___________ , 201__is made
by and between ENERTOPIA CORPORATION, a Nevada corporation (the
“Corporation”), and __________________(the “Optionee,”
which term as used herein shall be deemed to include any successor to the
Optionee by will or by the laws of descent and distribution, unless the context
shall otherwise require). 

BACKGROUND 

Pursuant to the Corporation’s 2014 Stock Option Plan (the
“Plan”), the Corporation, acting through the Committee of the Board of
Directors (if a committee has been formed to administer the Plan) or its entire
Board of Directors (if no such committee has been formed) responsible for
administering the Plan (in either case, referred to herein as the
“Committee”), approved the issuance to the Optionee,
__________________share options at $
______________per share, effective as of the date set forth
above, of a stock option to purchase shares of Common Stock of the Corporation
at the price (the “Option Price”) set forth in the attached Notice of
Grant (which is expressly incorporated herein and made a part hereof, the
“Notice of Grant”), upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual premises
and undertakings hereinafter set forth, the parties hereto agree as follows:

1.     Option; Option Price.
On behalf of the Corporation, the Committee hereby grants to the Optionee the
option (the “Option”) to purchase, subject to the terms and conditions of
this Agreement and the Plan (which is incorporated by reference herein and which
in all cases shall control in the event of any conflict with the terms,
definitions and provisions of this Agreement), that number of shares of Common
Stock of the Corporation set forth in the Notice of Grant, at an exercise price
per share equal to the Option Price as is set forth in the Notice of Grant (the
“Optioned Shares”). If designated in the Notice of Grant as an “incentive
stock option,” the Option is intended to qualify for Federal income tax purposes
as an “incentive stock option” within the meaning of Section 422 of the Code. A
copy of the Plan as in effect on the date hereof has been supplied to the
Optionee, and the Optionee hereby acknowledges receipt thereof. 

2.     Term. The term
(the “Option Term”) of the Option shall commence on the date of this
Agreement and shall expire on the Expiration Date set forth in the Notice of
Grant unless such Option shall theretofore have been terminated in accordance
with the terms of the Notice of Grant, this Agreement or of the Plan. 

1 

3.     Time of Exercise.

(a)     Unless accelerated in the
discretion of the Committee or as otherwise provided herein, the Option shall
become exercisable during its term in accordance with the Vesting Schedule set
out in the Notice of Grant. Subject to the provisions of Sections 5 and 8
hereof, shares as to which the Option becomes exercisable pursuant to the
foregoing provisions may be purchased at any time thereafter prior to the
expiration or termination of the Option. 

(b)     Anything contained in this
Agreement to the contrary notwithstanding, to the extent the Option is intended
to be an Incentive Stock Option, the Option shall not be exercisable as an
Incentive Stock Option, and shall be treated as a Non-Statutory Option, to the
extent that the aggregate Fair Market Value on the date hereof of all stock with
respect to which Incentive Stock Options are exercisable for the first time by
the Optionee during any calendar year (under the Plan and all other plans of the
Corporation, its parent and its subsidiaries, if any) exceeds $100,000. 

4.     Termination of Option.

(a)     The Optionee may exercise the
Option (but only to the extent the Option was exercisable at the time of
termination of the Optionee’s Business Relationship with the Corporation, its
parent or any of its subsidiaries) at any time within three (3) months following
the termination of the Optionee’s Business Relationship with the Corporation,
its parent or any of its subsidiaries, but not later than the scheduled
expiration date. If the termination of the Optionee’s employment is for cause or
is otherwise attributable to a breach by the Optionee of an employment,
non-competition, non-disclosure or other material agreement, the Option shall
expire immediately upon such termination. If the Optionee is a natural person
who dies while in a Business Relationship with the Corporation, its parent or
any of its subsidiaries, this option may be exercised, to the extent of the
number of shares with respect to which the Optionee could have exercised it on
the date of his death, by his estate, personal representative or beneficiary to
whom this option has been assigned pursuant to Section 9 of the Plan, at any
time within the twelve (12) month period following the date of death. If the
Optionee is a natural person whose Business Relationship with the Corporation,
its parent or any of its subsidiaries is terminated by reason of his disability,
this Option may be exercised, to the extent of the number of shares with respect
to which the Optionee could have exercised it on the date the Business
Relationship was terminated, at any time within the twelve (12) month period
following the date of such termination, but not later than the scheduled
expiration date. At the expiration of such three (3) or twelve (12) month period
or the scheduled expiration date, whichever is the earlier, this Option shall
terminate and the only rights hereunder shall be those as to which the Option
was properly exercised before such termination. 

(b)     Anything contained herein to the
contrary notwithstanding, the Option shall not be affected by any change of
duties or position of the Optionee (including a transfer to or from the
Corporation, its parent or any of its subsidiaries) so long as the Optionee
continues in a Business Relationship with the Corporation, its parent or any of
its subsidiaries. 

2 

5.     Procedure for
Exercise. 

(a)      The Option may be exercised,
from time to time, in whole or in part (but for the purchase of whole shares
only), by delivery of a written notice in the form attached as Exhibit A
hereto (the “Notice”) from the Optionee to the Secretary of the
Corporation, which Notice shall: 

(a)     state that the Optionee elects to
exercise the Option; 

(b)     state the number of shares with
respect to which the Option is being exercised (the “Optioned Shares”);

(c)     state the method of payment for the
Optioned Shares pursuant to Section 5(b); 

(d)     state the date upon which the
Optionee desires to consummate the purchase of the Optioned Shares (which date
must be prior to the termination of such Option and no later than 30 days from
the delivery of such Notice); 

(e)     include any representations of the
Optionee required under Section 8(b); 

(f)     if the Option shall be exercised in
accordance with Section 9 of the Plan by any person other than the Optionee,
include evidence to the satisfaction of the Committee of the right of such
person to exercise the Option; and 

(b)     Payment of the Option Price for the
Optioned Shares shall be made either (i) by delivery of cash or a check to the
order of the Corporation in an amount equal to the Option Price, (ii) if
approved by the Committee, by delivery to the Corporation of shares of Common
Stock of the Corporation having a Fair Market Value on the date of exercise
equal in amount to the Option Price of the options being exercised, (iii) by any
other means which the Board of Directors determines are consistent with the
purpose of the Plan and with applicable laws and regulations (including, without
limitation, the provisions of Rule 16b-3 and Regulation T promulgated by the
Federal Reserve Board), or (iv) by any combination of such methods of
payment.

(c)     The Corporation shall issue a stock
certificate in the name of the Optionee (or such other person exercising the
Option in accordance with the provisions of Section 9 of the Plan) for the
Optioned Shares as soon as practicable after receipt of the Notice and payment
of the aggregate Option Price for such shares. 

6.     No Rights as a
Stockholder. The Optionee shall not have any privileges of a
stockholder of the Corporation with respect to any Optioned Shares until the
date of issuance of a stock certificate pursuant to Section 5(c). 

7.    
Adjustments. The Plan contains provisions covering
the treatment of options in a number of contingencies such as stock splits and
mergers. Provisions in the Plan for adjustment with respect to stock subject to
options and the related provisions with respect to successors to the business of
the Corporation are hereby made applicable hereunder and are incorporated herein by reference. In general, the Optionee should not assume
that options would survive the acquisition of the Corporation. 

3 

8.     Additional Provisions Related
to Exercise.

(a)     The Option shall be exercisable
only on such date or dates and during such period and for such number of shares
of Common Stock as are set forth in this Agreement. 

(b)     To exercise the Option, the
Optionee shall follow the procedures set forth in Section 5 hereof. Upon the
exercise of the Option at a time when there is not in effect a registration
statement under the Securities Act of 1933, as amended (the “Securities
Act”), relating to the shares of Common Stock issuable upon exercise of the
Option, the Committee in its discretion may, as a condition to the exercise of
the Option, require the Optionee (i) to execute an Investment Representation
Statement substantially in the form set forth in Exhibit B hereto and
(ii) to make such other representations and warranties as are deemed appropriate
by counsel to the Corporation.

(c)     Stock certificates representing
shares of Common Stock acquired upon the exercise of Options that have not been
registered under the Securities Act shall, if required by the Committee, bear an
appropriate restrictive legend referring to the Securities Act. No shares of
Common Stock shall be issued and delivered upon the exercise of the Option
unless and until the Corporation and/or the Optionee shall have complied with
all applicable Federal or state registration, listing and/or qualification
requirements and all other requirements of law or of any regulatory agencies
having jurisdiction. 

(d)    Subject to the provisions of this
Agreement and the Plan and subject to compliance with any applicable securities
laws and the policies of the Canadian Securities Exchange, the Options shall be
exercisable, in full or in part, at any time after vesting, until termination,
provided that if the Optionee is subject to the reporting and liability
provisions of Section 16 of the Securities Exchange Act of 1934,
as amended, the Optionee shall be precluded from selling, transferring or
otherwise disposing of any Optioned Shares during the six months immediately
following the grant of the Options unless an exemption is available to such
restrictions. If less than all of the Optioned Shares included in the vested
portion of any Options are purchased, the remainder may be purchased at any
subsequent time prior to the Expiry Date. Only whole Optioned Shares may be
issued pursuant to the exercise of any Options, and to the extent that any
Option covers less than one Optioned Share, it is not exercisable. 

9.     No Evidence of Employment or
Service. Nothing contained in the Plan or this Agreement shall
confer upon the Optionee any right to continue in a Business Relationship with
the Corporation, its parent or any of its subsidiaries or interfere in any way
with the right of the Corporation, its parent or its subsidiaries (subject to
the terms of any separate agreement to the contrary) to terminate the Optionee’s
Business Relationship or to increase or decrease the Optionee’s compensation at
any time. 

10.     Restriction on
Transfer. The Option may not be transferred, pledged, assigned,
hypothecated or otherwise disposed of in any way by the Optionee, except by will
or by the laws of descent and distribution, and may be exercised during the
lifetime of the Optionee only by the Optionee. If the Optionee dies, the Option shall thereafter be
exercisable, during the period specified in Section 4, by his executors or
administrators to the full extent to which the Option was exercisable by the
Optionee at the time of his death. The Option shall not be subject to execution,
attachment or similar process. Any attempted assignment, transfer, pledge,
hypothecation or other disposition of the Option contrary to the provisions
hereof, and the levy of any execution, attachment or similar process upon the
Option, shall be null and void and without effect. The words “transfer” and
“dispose” include without limitation the making of any sale, exchange,
assignment, gift, security interest, pledge or other encumbrance, or any
contract therefor, any voting trust or other agreement or arrangement with
respect to the transfer of any interest, beneficial or otherwise, in the Option,
the creation of any other claim thereto or any other transfer or disposition
whatsoever, whether voluntary or involuntary, affecting the right, title,
interest or possession with respect to the Option. 

4 

11.     Specific Performance.
Optionee expressly agrees that the Corporation will be irreparably damaged if
the provisions of this Agreement and the Plan are not specifically enforced.
Upon a breach or threatened breach of the terms, covenants and/or conditions of
this Agreement or the Plan by the Optionee, the Corporation shall, in addition
to all other remedies, be entitled to a temporary or permanent injunction,
without showing any actual damage, and/or decree for specific performance, in
accordance with the provisions hereof and thereof. The Board of Directors shall
have the power to determine what constitutes a breach or threatened breach of
this Agreement or the Plan. Any such determinations shall be final and
conclusive and binding upon the Optionee. 

12.     Disqualifying
Dispositions. To the extent the Option is intended to be an Incentive
Stock Option, and if the Optioned Shares are disposed of within two years
following the date of this Agreement or one year following the issuance thereof
to the Optionee (a “Disqualifying Disposition”), the Optionee shall,
immediately prior to such Disqualifying Disposition, notify the Corporation in
writing of the date and terms of such Disqualifying Disposition and provide such
other information regarding the Disqualifying Disposition as the Corporation may
reasonably require. 

13.     Notices. All
notices or other communications which are required or permitted hereunder shall
be in writing and sufficient if (i) personally delivered or sent by telecopy,
(ii) sent by nationally-recognized overnight courier or (iii) sent by registered
or certified mail, postage prepaid, return receipt requested, addressed as
follows: 

if to the Optionee, to the address (or telecopy number) set
forth on the Notice of Grant; and 

if to the Corporation, to its principal executive office as
specified in any report filed by the Corporation with the Securities and
Exchange Commission or to such address as the Corporation may have specified to
the Optionee in writing, Attention: Corporate Secretary. 

or to such other address as the party to whom notice is to be
given may have furnished to the other party in writing in accordance herewith.
Any such communication shall be deemed to have been given (i) when delivered, if
personally delivered, or when telecopied, if telecopied, (ii) on the first
Business Day (as hereinafter defined) after dispatch, if sent by
nationally-recognized overnight courier and (iii) on the third Business Day
following the date on which the piece of mail containing such communication is posted, if sent by mail. As used herein,
“Business Day” means a day that is not a Saturday, Sunday or a day on which
banking institutions in the city to which the notice or communication is to be
sent are not required to be open.

5 

14.     Representations and
Warranties. The Optionee hereby represents and warrants to and covenants
with the Corporation (which representations, warranties and covenants shall
survive the closing) that: 

	 	(a) 	
      the Optionee is a director, officer, employee or
      consultant of the Corporation or subsidiary of the Corporation;

	 	 	 
	 	(b) 	
      if the Optionee is a consultant and resident in Canada,
      the Optionee:

	 	1) 	
      is engaged to provide services to the Corporation or a
      related entity of the Corporation, other than services provided in
      relation to a distribution,

	 	 	 
	 	2) 	
      provides the services under a written contract with the
      Corporation or a related entity of the issuer, and

	 	 	 
	 	3) 	
      spends or will spend a significant amount of time and
      attention on the affairs and business of the issuer or a related entity of
      the issuer;

	 	(c) 	
      if an employee or consultant of the Corporation or
      subsidiary of the Corporation, the Optionee is a bona fide employee or
      consultant of the Corporation or subsidiary of the
  Corporation;

14.     No Waiver. No
waiver of any breach or condition of this Agreement shall be deemed to be a
waiver of any other or subsequent breach or condition, whether of like or
different nature. 

15.    Optionee Undertaking.
The Optionee hereby agrees to take whatever additional actions and execute
whatever additional documents the Corporation may in its reasonable judgment
deem necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on the Optionee pursuant to the express
provisions of this Agreement. 

16.     Modification of
Rights. The rights of the Optionee are subject to modification
and termination in certain events as provided in this Agreement and the Plan.

17.     Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Nevada applicable to contracts made and to be wholly performed
therein, without giving effect to its conflicts of laws principles. 

18.     Counterparts; Facsimile
Execution. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument. Facsimile execution and
delivery of this Agreement is legal, valid and binding execution and delivery
for all purposes. 

6 

19.     Entire Agreement.
This Agreement (including the Notice of Grant) and the Plan, and, upon
execution, the Notice and Investment Representation Statement, constitute the
entire agreement between the parties with respect to the subject matter hereof,
and supersede all previously written or oral negotiations, commitments,
representations and agreements with respect thereto. 

20.     Severability.
In the event one or more of the provisions of this Agreement should, for any
reason, be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions
of this Agreement, and this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein.

21.     WAIVER OF JURY
TRIAL. THE OPTIONEE HEREBY EXPRESSLY, IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN. 

[signature page follows] 

7 

IN WITNESS WHEREOF, the parties hereto have executed
this Option Agreement as of the date first written above. 

	 	ENERTOPIA CORPORATION 
	 	  
	 	  
	 	By: 	 
	 		Name: 
	 		Title: 
	 	  
	 	  
	 	  
	 	Optionee: 
	 	 
	 	 
	 	 
	 	Name: 

8 

NOTE RE: EXHIBITS 

EXHIBITS A AND B ARE TO BE SIGNED 

WHEN OPTIONS ARE EXERCISED, 

NOT WHEN OPTION AGREEMENT IS SIGNED. 

EXHIBIT A 

ENERTOPIA CORPORATION 

2014 Stock Option Plan 

EXERCISE NOTICE 

ENERTOPIA CORPORATION

Attention:      Chief Executive Officer 

1.      Exercise of Option.
Effective as of today, _______________________, 20__ , the undersigned (the
“Optionee”) hereby elects to exercise the Optionee’s option to purchase
________________shares of the Common Stock (the “Shares”) of ENERTOPIA
CORPORATION(the “Corporation”) under and pursuant to the 2014 Stock
Option Plan (the “Plan”) and the Stock Option Agreement dated
__________________ (the “Stock Option Agreement”), with the purchase
of the Shares to be consummated on _________________, ____ (the
“Effective Date”), which date is prior to the termination of the
Option and no later than 30 days from the date of delivery of this Notice. 

2.     Representations of the
Optionee. The Optionee acknowledges that the Optionee has received, read and
understood the Plan and the Stock Option Agreement and agrees to abide by and be
bound by their terms and conditions.

3.     Rights as Shareholder; Shares
Subject to Stockholders Agreement. Until the stock certificate evidencing
such Shares is issued (as evidenced by the appropriate entry on the books of the
Corporation or of a duly authorized transfer agent of the Corporation), no right
to vote or receive dividends or any other rights as a stockholder shall exist
with respect to the Shares, notwithstanding the exercise of the Option. The
Corporation shall issue (or cause to be issued) such stock certificate promptly
after the Effective Date, provided the applicable price has been paid and the
required documents have been received. No adjustment will be made for a dividend
or other right for which the record date is prior to the date the stock
certificate is issued, except as otherwise provided in the Plan. Unless waived
by the Corporation in writing, the Shares shall automatically become subject to
the terms and conditions of any stockholders agreement or similar agreement to
which a majority of the outstanding capital stock of the Corporation is subject
at the time of exercise and the Optionee shall sign as a condition to the
issuance of the Shares such joinder agreement, signature pages or other
documents in order to evidence the Optionee’s agreement to be so bound. 

4.     Tax Consultation. The
Optionee understands that the Optionee may suffer adverse tax consequences as a
result of the Optionee’s purchase or disposition of the Shares. The Optionee
represents that the Optionee has consulted with any tax consultants the Optionee
deems advisable in connection with the purchase or disposition of the Shares and
that the Optionee is not relying on the Corporation for any tax advice. 

5.     Successors and Assigns. The
Corporation may assign any of its rights under the Stock Option Agreement to
single or multiple assignees (who may be stockholders, officers, directors, employees or consultants of the Corporation), and this
Agreement shall inure to the benefit of the successors and assigns of the
Corporation. Subject to the restrictions on transfer set forth in the Stock
Option Agreement, this Agreement shall be binding upon the Optionee and his or
her heirs, executors, administrators, successors and assigns. 

1 

6.     Interpretation. Any dispute
regarding the interpretations of this Agreement shall be submitted by the
Optionee or by the Corporation forthwith to the Committee, which shall review
such dispute at its next regular meeting. The resolution of such a dispute by
the Committee shall be final and binding on the Corporation and on the Optionee.

7.     Governing Laws: Severability.
This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Nevada applicable to contracts made and to be wholly performed
therein, without giving effect to its conflicts of laws principles. Should any
provision of this Agreement be determined by a court of law to be illegal or
unenforceable, the other provisions shall nevertheless remain effective and
shall remain enforceable. 

8.     Notices. Any notice required
or permitted hereunder shall be given in writing and shall be deemed effectively
given if given in the manner specified in the Stock Option Agreement. 

9.     Further Instruments. The
parties agree to execute such further instruments and to take such further
action as may be reasonably necessary to carry out the purposes and intent of
this Agreement. 

10.    Delivery of Payment. The
Optionee herewith delivers to the Corporation the full Option Price for the
Shares. 

11.    Entire Agreement. The Plan,
the Notice of Grant, and the Stock Option Agreement are incorporated herein by
reference. This Agreement, the Plan, the Notice of Grant, the Stock Option
Agreement, and the Investment Representation Statement constitute the entire
agreement of the parties and supersede in their entirety all prior undertakings
and agreements of the Corporation and the Optionee with respect to the subject
matter hereof. 

	Submitted by: 	 	Accepted by: 
	 	 	 
	OPTIONEE: 	 	ENERTOPIA CORPORATION 
	 	 	 
	  	 	  
	  	 	By:	 
	 	 	 	 
	  	 	Its:	 
	Name: 	 	  

2 

EXHIBIT B 

2014 Stock Option Plan 

INVESTMENT REPRESENTATION STATEMENT 

	OPTIONEE: 	 
    
	 	 
	CORPORATION: 	ENERTOPIA CORPORATION 
	 	 
	SECURITY: 	Common
      Stock 
	 	 
	AMOUNT: 	 
    
	 	 
	DATE: 	 
    

In connection with the purchase of the above-listed Securities,
the undersigned Optionee represents to the Corporation the following: 

(a)     The Optionee is aware of the
Corporation’s business affairs and financial condition and has acquired
sufficient information about the Corporation to reach an informed and
knowledgeable decision to acquire the Securities. The Optionee is acquiring
these Securities for investment for the Optionee’s own account only and not with
a view to, or for resale in connection with, a “distribution” thereof within the
meaning of the Securities Act of 1933, as amended (the “Securities Act”).

(b)     The Optionee acknowledges and
understands that the Securities constitute “restricted securities” under the
Securities Act and have not been registered under the Securities Act in reliance
upon a specific exemption therefrom, which exemption depends upon, among other
things, the bona fide nature of the Optionee’s investment intent as expressed
herein. In this connection, the Optionee understands that, in the view of the
Securities and Exchange Commission, the statutory basis for such exemption may
be unavailable if the Optionee’s representation was predicated solely upon a
present intention to hold these Securities for the minimum capital gains period
specified under tax statutes, for a deferred sale, for or until an increase or
decrease in the market price of the Securities, or for a period of one year or
any other fixed period in the future. The Optionee further understands that the
Securities must be held indefinitely unless they are subsequently registered
under the Securities Act or an exemption from such registration is available.
The Optionee further acknowledges and understands that the Corporation is under
no obligation to register the Securities. The Optionee understands that the
certificate evidencing the Securities will be imprinted with a legend which
prohibits the transfer of the Securities unless they are registered or such
registration is not required in the opinion of counsel satisfactory to the
Corporation and other legends required under the applicable state or federal
securities laws. 

Signature of Optionee: _____________________________

Date:__________________

1

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