Document:

Exhibit 10.13

 

FORM OF

 

AGREEMENT REGARDING
 CHANGE IN CONTROL

 

THIS AGREEMENT (“Agreement”) is made and entered into as of                                , 201     (the “Effective Date”) by and between AbbVie Inc. (the “Company”) and                 (the “Executive”);

 

WITNESSETH THAT:

 

WHEREAS, the Company considers it essential to the best interests of its shareholders to foster the continuous employment of key management personnel, and the Board of Directors of the Company (the “Board”) recognizes that, as is the case with many publicly held corporations, a change in control might occur and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders; and

 

WHEREAS, the Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management, including the Executive, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a change in control of the Company;

 

NOW, THEREFORE, to induce the Executive to remain in the employ of the Company and in consideration of the premises and mutual covenants set forth herein, IT IS HEREBY AGREED by and between the parties as follows:

 

1.             AGREEMENT TERM.  The initial “Agreement Term” shall begin on the Effective Date and continue through December 31, 20     (the initial “Expiration Date”).  The Agreement Term may be extended beyond the Expiration Date.  If notification of extension is provided before an Expiration Date, the Agreement Term shall continue through the second anniversary of the applicable Expiration Date.  If notification of non-extension is provided before an Expiration Date, the Agreement Term shall expire on the first anniversary of the date of such notification (but in no event prior to such Expiration Date).  If no notification regarding Agreement Term extension or non-extension is provided prior to an Expiration Date, the Agreement Term shall expire on the first anniversary of such Expiration Date.  Each time the Agreement Term is extended, the procedure described in the foregoing sentences shall repeat.  Notwithstanding the foregoing, if a Change in Control (as defined in Section 7 below) occurs during the Agreement Term, the Agreement Term shall continue through and terminate on the second anniversary of the date on which the Change in Control occurs.

 

2.             ENTITLEMENT TO CHANGE IN CONTROL BENEFITS. The Executive shall be entitled to the change in control benefits described in Section 3 hereof if the Executive’s employment by the Company is terminated during the Agreement Term but after a Change in Control (i) by the Company for any reason other than Permanent Disability or Cause, or (ii) by the Executive for Good Reason.  For purposes of this Agreement:

 

 

(a)           A termination of the Executive’s employment shall be treated as a termination by reason of “Permanent Disability” only if, by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, the Executive is unable to engage in any substantial gainful activity or is receiving income replacement benefits under an accident and health plan provided by the Company for a period of not less than three months.

 

(b)           The term “Cause” shall mean the willful engaging by the Executive in illegal conduct or gross misconduct which is demonstrably and materially injurious to the Company.  For purposes of this Agreement, no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the Executive’s action or omission was in the best interest of the Company. Notwithstanding the foregoing, the Executive shall not be deemed to have been terminated for Cause unless and until the Company delivers to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the entire membership of the Board at a meeting of the Board called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive, together with counsel, to be heard before the Board) finding that, in the good faith opinion of the Board, the Executive was guilty of conduct set forth above and specifying the particulars thereof in detail.

 

(c)           The term “Good Reason” shall mean the occurrence of any of the following circumstances without the Executive’s express written consent:

 

(i)            a significant adverse change in the nature, scope or status of the Executive’s position, authorities or duties from those in effect immediately prior to the Change in Control, including, without limitation, if the Executive was, immediately prior to the Change in Control, an executive officer of a public company, the Executive ceasing to be an executive officer of a public company;

 

(ii)           the failure by the Company to pay the Executive any portion of the Executive’s current compensation, or to pay the Executive any portion of any installment of deferred compensation under any deferred compensation program of the Company, within seven (7) days of the date such compensation is due;

 

(iii)          a reduction in the Executive’s annual base salary (or a material change in the frequency of payment) as in effect immediately prior to the Change in Control as the same may be increased from time to time;

 

(iv)          the failure by the Company to award the Executive an annual bonus in any year which is at least equal to the annual bonus, awarded to the Executive under the annual bonus plan of the Company for the year immediately preceding the year of the Change in Control;

 

(v)           the failure by the Company to award the Executive equity-based incentive compensation (such as stock options, shares of restricted stock, restricted stock units, or other equity-based compensation) on a periodic basis

 

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consistent with the Company’s practices with respect to timing, value and terms prior to the Change in Control;

 

(vi)          the failure by the Company to continue to provide the Executive with the welfare benefits, fringe benefits and perquisites enjoyed by the Executive immediately prior to the Change in Control under any of the Company’s plans or policies, including, but not limited to, those plans and policies providing pension, life insurance, medical, health and accident, disability, vacation, executive automobile, executive tax or financial advice benefits or club dues;

 

(vii)         the relocation of the Company’s principal executive offices to a location more than thirty-five miles from the location of such offices immediately prior to the Change in Control or the Company requiring the Executive to be based anywhere other than the location where the Executive primarily performs services for the Company immediately prior to the Change in Control except for required travel for the Company’s business to an extent substantially consistent with the Executive’s business travel obligations immediately prior to the Change in Control; or

 

(viii)        the failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform this Agreement as contemplated by Section 17.

 

For purposes of any determination regarding the existence of Good Reason, any good faith determination by the Executive that Good Reason exists shall be conclusive.

 

3.             CHANGE IN CONTROL BENEFITS.  In the event of a termination of employment entitling the Executive to benefits in accordance with Section 2, the Executive shall receive the following:

 

(a)           The Executive shall be entitled to receive the following employee welfare benefits, provided that such benefits were provided to the Executive immediately prior to the Change in Control: medical, accident, dental, prescription, and life insurance coverage for the Executive (and, where applicable under the Company’s welfare benefit plans, the Executive’s family) through the second anniversary of the Executive’s date of termination of employment, or, if earlier, the date on which the Executive becomes employed by another employer. The benefits provided by the Company shall be no less favorable in terms of coverage and cost to the Executive than those provided under the Company’s welfare benefit plans applicable to the Executive (and, where applicable, the Executive’s family) prior to the Change in Control, determined as if the Executive remained in the employ of the Company through such second anniversary. For purposes of determining eligibility of the Executive for retiree welfare benefits, the Executive shall be considered to have remained in the employ of the Company through such second anniversary.

 

(b)           If the Executive’s date of termination occurs after the end of a performance period applicable to an annual incentive (bonus) award, and prior to the payment of the award for the period, the Executive shall be entitled to a lump sum

 

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payment in cash no later than twenty (20) business days after the date of termination equal to the greatest of (i) the Executive’s annual incentive (bonus) award for that period, as determined under the terms of that incentive award arrangement, (ii) the Executive’s annual incentive (bonus) award for that period, with the determination of the amount of such award based on an assumption that the target level of performance had been achieved, or (iii) the Executive’s average annual incentive (bonus) award for the three annual performance periods preceding that period (provided that if the Executive was not a participant in the incentive award arrangement for any of those three prior years, the averaging period shall be reduced from three years to the number of years during the three year period in which the Executive was a participant; and further provided that if the Executive’s award for any such year was reduced because the Executive was not a participant for the full year, such amount shall be annualized for purposes of the computation in this clause (iii)).

 

(c)           For any annual incentive (bonus) plan or arrangement in which the Executive participates for the performance period in which the Executive’s termination of employment occurs, the Executive shall be entitled to a lump sum payment in cash no later than twenty (20) business days after the date of termination equal to the greater of (i) the Executive’s annual incentive (bonus) award for the performance period that includes the date of termination, with the determination of the amount of such award based on an assumption that the target level of performance has been achieved or (ii) the Executive’s average annual incentive (bonus) award for the three annual performance periods preceding the performance period that includes the date of termination (provided that if the Executive was not a participant in the incentive award arrangement for any of those three prior years, the averaging period shall be reduced from three years to the number of years during the three year period in which the Executive was a participant; and further provided that if the Executive’s award for any such year was reduced because the Executive was not a participant for the full year, such amount shall be annualized for purposes of the computation in this clause (ii)); provided that such payment shall be subject to a pro-rata reduction to reflect the number of days in the performance period following the date of termination. The amount payable under this Section 3(c) shall be in lieu of any amounts that may otherwise be due to the Executive with respect to any annual incentive (bonus) plan or arrangement in which the Executive participates for the performance period in which the Executive’s date of termination occurs.

 

(d)           The Executive shall be entitled to a lump sum payment in cash no later than twenty (20) business days after the Executive’s date of termination equal to the sum of:

 

(i)            an amount equal to three times the Executive’s annual salary rate in effect on the date of the Change in Control or, or if greater, as in effect immediately prior to the date of termination; plus

 

(ii)           an amount equal to three times the greater of (x) the Executive’s annual incentive (bonus) award for the performance period that includes the date of the Executive’s termination of employment, with the determination of the amount of such award based on an assumption that the target level of performance has been achieved or (y) the Executive’s average annual incentive (bonus) award

 

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for the three annual performance periods preceding the performance period that includes the date of termination (provided that if the Executive was not a participant in the incentive award arrangement for any of those three prior years, the averaging period shall be reduced from three years to the number of years during the three year period in which the Executive was a participant; and further provided that if the Executive’s award for any such year was reduced because the Executive was not a participant for the full year, such amount shall be annualized for purposes of the computation in this subsection (ii)); plus

 

(iii)          either (A) or (B) below, as applicable:

 

(A)          if the Executive is a participant in the AbbVie Supplemental Pension Plan (the “Supplemental Plan”), the lump sum present value of the difference between the Enhanced Supplemental Plan Benefits (as defined below) and the total benefit to which the Executive is then entitled under the Supplemental Plan. The Enhanced Supplemental Plan Benefits shall mean the benefits under the Supplemental Plan determined as if the Executive had been credited for benefit accrual purposes with three additional years of service and three additional years of eligible earnings at the higher of the Executive’s eligible earnings on the date of termination or the Executive’s eligible earnings on the date of the Change in Control and, for purposes of determining the Executive’s eligibility for subsidized early retirement benefits, determined as if the Executive were three years older than the Executive’s actual age on the date of termination. For purposes of the determination of the Enhanced Supplemental Plan Benefits, “eligible earnings” shall include salary, annual incentive (bonus) awards and all other forms of compensation used to calculate benefits under the Supplemental Plan. The amounts of the annual incentive (bonus) awards shall be calculated, to the extent applicable, in accordance with Sections 3(b) and 3(c) above. The Enhanced Supplemental Plan Benefits shall be determined without regard to any termination or amendment (including any amendment affecting actuarial factors) of such plan or of any other plan, which is adopted on or after a Change in Control or in contemplation of a Change in Control and shall be paid in accordance with the terms of that plan and the Executive’s elections under that plan; or

 

(B)          if the Executive is not a participant in the Supplemental Plan but is a participant in a similar supplemental pension arrangement outside the United States, the lump sum present value of the difference between the Enhanced Pension Plan Benefits (as defined below) and the benefit to which the Executive is then entitled under the Pension Plan (as defined below).  The Enhanced Pension Plan Benefits shall mean the benefits under the Pension Plan determined as if the Executive had been credited for benefit accrual purposes with three additional years of service and three additional years of eligible earnings at the higher of the Executive’s eligible earnings on the date of termination or the Executive’s

 

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eligible earnings on the date of the Change in Control and, for purposes of determining the Executive’s eligibility for any employer-subsidized early retirement benefits, determined as if the Executive were three years older than the Executive’s actual age on the date of termination.  For purposes of the determination of the Enhanced Pension Plan Benefits, “eligible earnings” shall include salary, annual incentive (bonus) awards and all other forms of compensation used to calculate benefits under the Pension Plan.  The amounts of the annual incentive (bonus) awards shall be calculated, to the extent applicable, in accordance with Sections 3(b) and 3(c) above.  The Enhanced Pension Plan Benefits shall be determined without regard to any termination or amendment (including any amendment affecting actuarial factors) of such plan or of any other plan, which is adopted on or after a Change in Control or in contemplation of a Change in Control and shall be paid in accordance with the terms of that plan and the Executive’s elections under that plan.  “Pension Plan” shall mean the pension or retirement plan or scheme of the Company (or its applicable subsidiary) in which the Executive participates on the date of termination or the date of the Change in Control, as applicable.

 

The amounts payable under Sections 3(d)(i) and 3(d)(ii) shall include the amounts, if any, to which the Executive would otherwise be entitled as severance or notice pay under any severance pay plan or applicable law, provided that if the amount to which the Executive is entitled as severance or notice pay under applicable law exceeds the amounts payable under Sections 3(d)(i) and 3(d)(ii), the Executive shall be entitled to such excess in accordance with the provisions of applicable law.  The amounts payable under Sections 3(d)(i) and 3(d)(ii) shall be in addition to (and not inclusive of) any amount payable under any written agreement(s) directly between the Executive and the Company or any of its subsidiaries.

 

(e)           If the Executive has previously made a timely election with respect to bonuses payable under the AbbVie 2013 Management Incentive Plan, the AbbVie 2013 Performance Incentive Plan, or any successor plans thereto, all or any portion of the amounts payable under Sections 3(b) and 3(c) (less applicable tax withholding) shall be paid directly to a grantor trust established by the Executive to the same extent as and pursuant to such election no later than twenty (20) business days after the Executive’s date of termination.

 

(f)            The Company shall provide the Executive with outplacement services and tax and financial counseling suitable to the Executive’s position through the second anniversary of the date of the Executive’s termination of employment, or, if earlier, the date on which the Executive becomes employed by another employer.

 

If the Executive is a participant in the AbbVie 2013 Performance Incentive Plan or any successor thereto, the Executive’s annual incentive (bonus) award for the performance period which includes the date of termination under Sections 3(c) and 3(d)(ii) above and, if applicable, for the period preceding the date of termination under Section 3(b) shall be determined under the bonus levels communicated in writing to the Executive by the Company for such year and shall not be the Executive’s individual base award allocation as defined in the

 

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AbbVie 2013 Performance Incentive Plan (or any corresponding provision of any successor plan).

 

4.             MITIGATION. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise. Except as set forth in Section 3(a) with respect to benefits, the Company shall not be entitled to set off against the amounts payable to the Executive under this Agreement any amounts owed to the Company by the Executive, any amounts earned by the Executive in other employment after the Executive’s termination of employment with the Company, or any amounts which might have been earned by the Executive in other employment had the Executive sought such other employment.

 

5.             CODE SECTION 280G.

 

(a)           Anything in this Agreement to the contrary notwithstanding, in the event that the Accounting Firm (as defined below) determines that receipt of all Payments (as defined below) would subject the Executive to the tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), the Accounting Firm shall determine whether to reduce any of the Agreement Payments (as defined below) to the Executive so that the Parachute Value (as defined below) of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount (as defined below).  Agreement Payments shall be so reduced only if the Accounting Firm determines that the Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced.  If the Accounting Firm determines that the Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement Payments were so reduced, the Executive shall receive all Agreement Payments to which the Executive is entitled hereunder.

 

(b)           If the Accounting Firm determines that the aggregate Agreement Payments to the Executive should be reduced so that the Parachute Value of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount, the Company shall promptly give the Executive notice to that effect and a copy of the detailed calculation thereof.  All determinations made by the Accounting Firm under this Section 5 shall be binding upon the Company and the Executive and shall be made as soon as reasonably practicable and in no event later than fifteen (15) days following the date of the Executive’s termination of employment.  For purposes of reducing the Agreement Payments to the Executive so that the Parachute Value of all Payments to the Executive, in the aggregate, equals the applicable Safe Harbor Amount, only Agreement Payments (and no other Payments) shall be reduced.  The reduction contemplated by this Section 5, if applicable, shall be made by reducing payments and benefits (to the extent such amounts are considered Payments) under the following sections in the following order:  (i) any Payments under Section 3(e), (ii) any Payments under Section 3(d), and (iii) any other cash Agreement Payments that would be made upon a termination of the Executive’s employment, beginning with payments that would be made last in time.

 

(c)           As a result of the uncertainty in the application of Code Section 4999 at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of the

 

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Executive pursuant to this Agreement that should not have been so paid or distributed (each, an “Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for the benefit of the Executive pursuant to this Agreement could have been so paid or distributed (each, an “Underpayment”), in each case consistent with the calculation of the applicable Safe Harbor Amount hereunder.  In the event that the Accounting Firm, based on the assertion of a deficiency by the Internal Revenue Service against the Company or the Executive which the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the benefit of the Executive shall be repaid by the Executive to the Company, together with interest at the applicable federal rate provided for in Code Section 7872(f)(2); provided, however, that no such repayment shall be required if and to the extent such deemed repayment would not either reduce the amount on which the Executive is subject to tax under Code Sections 1 and 4999 or generate a refund of such taxes.  In the event that the Accounting Firm, based on controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive, together with interest at the applicable federal rate provided for in Code Section 7872(f)(2).

 

(d)           In connection with making determinations under this Section 5, the Accounting Firm shall take into account the value of any reasonable compensation for services to be rendered by the Executive before or after the Change in Control, including any non-competition provisions that may apply to the Executive, and the Company shall cooperate in the valuation of any such services, including any non-competition provisions.

 

(e)           All fees and expenses of the Accounting Firm in implementing the provisions of this Section 5 shall be borne by the Company.

 

(f)            Definitions.  The following terms shall have the following meanings for purposes of this Section 5.

 

(i)            “Accounting Firm” shall mean a nationally recognized certified public accounting firm that is selected by the Company for purposes of making the applicable determinations hereunder, which firm shall not, without the Executive’s consent, be a firm serving as accountant or auditor for the individual, entity or group effecting the Change in Control.

 

(ii)           “Agreement Payment” shall mean a Payment paid or payable pursuant to this Agreement.

 

(iii)          “Net After-Tax Receipt” shall mean the Present Value of a Payment net of all taxes imposed on the Executive with respect thereto under Code Sections 1 and 4999 and under applicable state, local, and foreign laws, determined by applying the highest marginal rate under Code Section 1 and under state, local, and foreign laws that applied to the Executive’s taxable income for the immediately preceding taxable year, or such other rate as the Executive shall certify, in the Executive’s sole discretion, as likely to apply to the Executive in the relevant tax year.

 

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(iv)          “Parachute Value” of a Payment shall mean the present value as of the date of the change in control for purposes of Code Section 280G of the portion of such Payment that constitutes a “parachute payment” under Code Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the excise tax under Code Section 4999 will apply to such Payment.

 

(v)           “Payment” shall mean any payment or distribution in the nature of compensation (within the meaning of Code Section 280G(b)(2)) to or for the benefit of the Executive, whether paid or payable pursuant to this Agreement or otherwise.

 

(vi)          “Present Value” of a Payment shall mean the economic present value of a Payment as of the date of the change in control for purposes of Code Section 280G, as determined by the Accounting Firm using the discount rate required by Code Section 280G(d)(4).

 

(vii)         “Safe Harbor Amount” means (x) 3.0 times the Executive’s “base amount,” within the meaning of Code Section 280G(b)(3), minus (y) $1.00.

 

6.             TERMINATION DURING POTENTIAL CHANGE IN CONTROL.  If a Potential Change in Control (as defined in Section 8) occurs during the Agreement Term, and the Company terminates the Executive’s employment for reasons other than Permanent Disability or Cause during such Potential Change in Control, the Executive shall be entitled to receive the benefits that the Executive would have received under Section 3, such benefits to be calculated based on the Executive’s compensation prior to the actual termination of employment and such benefits to be paid within twenty (20) business days of the date of such termination; provided, however, that if the Executive is then a “covered employee” as defined under Code Section 162(m), with respect to (a) any annual incentive (bonus) award under Section 3(b), and (b) any annual incentive (bonus) award under Section 3(c), (i) the Executive shall be entitled to receive such annual incentive (bonus) awards only based on achievement of the applicable performance goals, as determined by the terms of the applicable incentive award arrangement, and (ii) upon the occurrence of a Change in Control that (A) qualifies as a “change in control event” (within the meaning of Treasury Regulation Section 1.409A-3(i)(5)) and (B) results from the consummation of the Potential Change in Control in connection with which the Executive was terminated, the Executive shall also be entitled to receive the excess of (x) the annual incentive (bonus) awards that the Executive would have received under Sections 3(b) and 3(c) over (y) the amount paid to the Executive under clause 6(b)(i) above, which awards shall be paid to the Executive within twenty (20) business days of the date of the occurrence of such Change in Control.

 

7.             CHANGE IN CONTROL. For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred on the earliest of the following dates:

 

(a)           the date any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates) representing 20% or more of the combined voting power of the Company’s then

 

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outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of Section 7(c) below; or

 

(b)           the date on which the following individuals cease for any reason to constitute a majority of the number of directors then serving on the Board: individuals who, on the date hereof, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended; or

 

(c)           the date on which there is consummated a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation or other entity, other than (i) a merger or consolidation (A) immediately following which the individuals who comprise the Board immediately prior thereto constitute at least a majority of the board of directors of the Company, the entity surviving such merger or consolidation or, if the Company or the entity surviving such merger or consolidation is then a subsidiary, the ultimate parent thereof and (B) which results in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, at least 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 20% or more of the combined voting power of the Company’s then outstanding securities; or

 

(d)           the date on which the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by shareholders of the Company, in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any subsidiary of the Company, in substantially the same proportions as their ownership of the Company immediately prior to such sale.

 

Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company

 

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immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.

 

For purposes of this Agreement: “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the Exchange Act; “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act; “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time; and “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, (iii) an underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

8.             POTENTIAL CHANGE IN CONTROL. A “Potential Change in Control” shall exist during any period in which the circumstances described in Section (a), (b), (c) or (d), below, exist (provided, however, that a Potential Change in Control shall cease to exist not later than the occurrence of a Change in Control):

 

(a)           The Company enters into an agreement, the consummation of which would result in the occurrence of a Change in Control, provided that a Potential Change in Control described in this Section 8(a) shall cease to exist upon the expiration or other termination of all such agreements;

 

(b)           Any Person (without regard to the exclusions set forth in subsections (i) through (iv) of such definition) publicly announces an intention to take or to consider taking actions the consummation of which would constitute a Change in Control; provided that a Potential Change in Control described in this Section 8(b) shall cease to exist upon the withdrawal of such intention, or upon a determination by the Board that there is no reasonable chance that such actions would be consummated;

 

(c)           Any Person becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 10% or more of either the then outstanding shares of common stock of the Company or the combined voting power of the Company’s then outstanding securities (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Affiliates);

 

(d)           The Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control exists; provided that a Potential Change in Control described in this Section 8(d) shall cease to exist upon a determination by the Board that the reasons that gave rise to the resolution providing for the existence of a Potential Change in Control have expired or no longer exist.

 

9.             EQUITY AWARDS.  With respect to any award granted to the Executive under the Company’s 2013 Incentive Stock Program (the “Program”) or any successor program, the following shall apply:

 

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(a)           if the award (other than an incentive stock option granted pursuant to Code Section 422 (an “Incentive Stock Option”)) includes a provision substantially similar to the applicable provision in Appendix A, then after a Change in Control no forfeiture shall be effected pursuant to such provision with respect to the Executive unless the Executive has been terminated for “Cause” within the meaning of Section 2(b) above; and

 

(b)           if the Executive becomes entitled to severance benefits under Section 2(b) above, then in determining the Executive’s rights with respect to that award, other than Incentive Stock Options, the Executive shall be treated as having incurred a termination of employment due to retirement.

 

10.          WITHHOLDING.  All payments to the Executive under this Agreement will be subject to withholding of applicable taxes. The Company shall withhold the applicable taxes in an amount calculated at the minimum statutory rate and shall pay the amount so withheld to the appropriate tax authority.

 

11.          CODE SECTION 409A.  To the extent applicable, it is intended that the Agreement be in accordance with the provisions of Code Section 409A.  The Agreement will be administered and interpreted in a manner consistent with this intent, and any provision that would cause the Agreement to fail to satisfy Code Section 409A will have no force and effect until amended to comply therewith (which amendment may be retroactive to the extent permitted by Code Section 409A).  To the extent Code Section 409A applies, and notwithstanding anything contained herein to the contrary, for all purposes of this Agreement, the Executive shall not be deemed to have had a termination of employment unless the Executive has incurred a separation from service as defined in Treasury Regulation §1.409A-1(h) and, to the extent required to avoid accelerated taxation and/or tax penalties under Code Section 409A and applicable guidance issued thereunder, payment of the amounts payable under the Agreement that would otherwise be payable during the six-month period after the date of termination shall instead be paid on the first business day after the expiration of such six-month period.  In addition, for purposes of the Agreement, each amount to be paid and each installment payment shall be construed as a separate, identified payment for purposes of Code Section 409A.  With respect to expenses eligible for reimbursement under the terms of this Agreement, (i) the amount of such expenses eligible for reimbursement in any taxable year shall not affect the expenses eligible for reimbursement in another taxable year and (ii) any reimbursements of such expenses shall be made no later than the end of the calendar year following the calendar year in which the related expenses were incurred, except, in each case, to the extent that the right to reimbursement does not provide for a “deferral of compensation” within the meaning of Code Section 409A.

 

12.          NONALIENATION.  The interests of the Executive under this Agreement are not subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Executive or the Executive’s beneficiary.

 

13.          AMENDMENT.  This Agreement may be amended or canceled only by mutual agreement of the parties in writing without the consent of any other person. So long as the Executive lives, no person, other than the parties hereto, shall have any rights under or interest in this Agreement or the subject matter hereof.

 

12

 

14.          APPLICABLE LAW.  The provisions of this Agreement shall be construed in accordance with the laws of the State of Illinois, without regard to the conflict of law provisions of any state.

 

15.          SEVERABILITY.  The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of any other provision of this Agreement, and this Agreement will be construed as if such invalid or unenforceable provision were omitted (but only to the extent that such provision cannot be appropriately reformed or modified).

 

16.          WAIVER OF BREACH.  No waiver by any party hereto of a breach of any provision of this Agreement by any other party, or of compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed as a waiver of any subsequent breach by such other party of any similar or dissimilar provisions and conditions at the same or any prior or subsequent time. The failure of any party hereto to take any action by reason of such breach will not deprive such party of the right to take action at any time while such breach continues.

 

17.          SUCCESSORS, ASSUMPTION OF CONTRACT.  This Agreement shall be binding upon and inure to the benefit of the Company and any successor of the Company. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no succession had taken place.  This Agreement is personal to the Executive and may not be assigned by the Executive without the written consent of the Company. However, to the extent that rights or benefits under this Agreement otherwise survive the Executive’s death, the Executive’s heirs and estate shall succeed to such rights and benefits pursuant to the Executive’s will or the laws of descent and distribution; provided that the Executive shall have the right at any time and from time to time, by notice delivered to the Company, to designate or to change the beneficiary or beneficiaries with respect to such benefits.

 

18.          NOTICES. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid (provided that international mail shall be sent via overnight or two-day delivery), or sent by facsimile or prepaid overnight courier to the parties at the addresses set forth below. Such notices, demands, claims and other communications shall be deemed given:

 

(a)           in the case of delivery by overnight service with guaranteed next day delivery, the next day or the day designated for delivery;

 

(b)           in the case of certified or registered U.S. mail, five (5) days after deposit in the U.S. mail; or

 

(c)           in the case of facsimile, the date upon which the transmitting party received confirmation of receipt by facsimile, telephone or otherwise;

 

provided, however, that in no event shall any such communications be deemed to be given later than the date they are actually received. Communications that are to be delivered by the U.S.

 

13

 

mail or by overnight service or two-day delivery service are to be delivered to the addresses set forth below:

 

to the Company:

 

Senior Vice President, Human Resources Officer
  AbbVie Inc.

1 North Waukegan Road

North Chicago, Illinois 60064

 

with a copy (which shall not constitute notice) to:

 

General Counsel and Secretary
  AbbVie Inc.

1 North Waukegan Road

North Chicago, Illinois 60064

 

or to the Executive:

 

Name

Address

City, State Zip

 

Each party, by written notice furnished to the other party, may modify the applicable delivery address, except that notice of change of address shall be effective only upon receipt.

 

19.          RESOLUTION OF ALL DISPUTES. Any controversy or claim arising out of or relating to this Agreement (or the breach thereof) (a “Dispute”) shall be settled by alternative dispute resolution procedures in accordance with Appendix B hereto.  During the pendency of any Dispute, the Company shall continue to pay the Executive the full compensation in effect when the notice giving rise to the Dispute was given (including, but not limited to, salary) and continue the Executive (and, where applicable, the Executive’s family) as a participant in all compensation, benefit and insurance plans in which the Executive was participating when the notice giving rise to the Dispute was given, until such Dispute is resolved.

 

20.          LEGAL AND ENFORCEMENT COSTS. The provisions of this Section 20 shall apply if it becomes necessary or desirable for the Executive to retain legal counsel or incur other costs and expenses in connection with enforcing any and all rights under this Agreement or any other compensation plan maintained by the Company, including, but not limited to, the AbbVie Inc. 2013 Incentive Stock Program, the AbbVie 2013 Management Incentive Plan, the AbbVie 2013 Performance Incentive Plan, the AbbVie Deferred Compensation Plan, the AbbVie Supplemental Pension Plan, the AbbVie Supplemental Savings Plan or, in each case, any trust adopted pursuant thereto:

 

(a)           The Executive shall be entitled to recover from the Company reasonable attorneys’ fees, costs and expenses incurred in connection with such enforcement or defense.

 

14

 

(b)           Payments required under this Section 20 shall be made by the Company to the Executive (or directly to the Executive’s attorney) as such attorney’s fees, costs, and expenses are incurred, upon the Executive’s prompt submission to the Company of appropriate documentation evidencing the incurrence of such attorneys’ fees, costs, and expenses.

 

(c)           The Executive shall be entitled to select legal counsel; provided, however, that such right of selection shall not affect the requirement that any costs and expenses reimbursable under this Section 20 be reasonable.

 

(d)           The Executive’s rights to payments under this Section 20 shall not be affected by the final outcome of any dispute with the Company.

 

21.          SURVIVAL OF AGREEMENT. Except as otherwise expressly provided in this Agreement, the rights and obligations of the parties to this Agreement shall survive the termination of the Executive’s employment with the Company.

 

22.          ENTIRE AGREEMENT. Except as otherwise provided herein, this Agreement constitutes the entire agreement between the parties concerning the subject matter hereof and supersedes all prior or contemporaneous agreements between the parties relating to the subject matter hereof; provided, however, that nothing in this Agreement shall be construed to limit any policy or agreement that is otherwise applicable relating to confidentiality, rights to inventions, copyrightable material, business and/or technical information, trade secrets, solicitation of employees, interference with relationships with other businesses, competition, and other similar policies or agreement for the protection of the business and operations of the Company and the subsidiaries.

 

23.          DATE OF TERMINATION.  For purposes of this Agreement, the Executive’s termination of employment shall be effective as of the last day the Executive performs services for or on behalf of the Company and its subsidiaries, and the Executive’s term of employment shall not be deemed extended by any notice period mandated under local law.  The Company shall have the exclusive discretion to determine the date as of which the Executive’s employment has been terminated for purposes of this Agreement.

 

24.          NO RIGHT TO CONTINUED EMPLOYMENT.  This Agreement is not and shall not be interpreted to confer upon the Executive any right to continue in the employ of the Company or any of its subsidiaries or interfere with the ability of the Company or its subsidiaries to terminate the Executive’s employment at any time.

 

25.          NATURE OF BENEFITS.  References in this Agreement to other benefits or programs on which change in control benefits may be based do not guarantee continued receipt of such benefits or participation in such benefit programs and such references are not intended to create any contractual or other right to receive future benefits.

 

26.          INTERPRETATION.  The Company (or its delegate) shall, subject to and not inconsistent with the express provisions of the Agreement, have the power and authority to construe and interpret the terms of the Agreement and to make all other determinations deemed necessary or advisable for the administration of the Agreement.  The Company (or its delegate)

 

15

 

may correct any defect or supply any omission or reconcile any inconsistency in the Agreement in the manner and to the extent it shall deem necessary or advisable to carry the Agreement into effect and shall be the sole and final judge of such necessity or advisability.

 

27.          COUNTERPARTS. This Agreement may be executed in two or more counterparts, any one of which shall be deemed the original without reference to the others.

 

 

[SIGNATURE PAGE FOLLOWS]

 

16

 

IN WITNESS THEREOF, the Executive has hereunto set his or her hand, and the Company has caused these presents to be executed in its name and on its behalf, and its corporate seal to be hereunto affixed on this         day of                 , 201   , all as of the Effective Date.

 

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
EXECUTIVE
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ABBVIE INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Its
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ATTEST:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
(Seal)
    	
 
    	
 
    

 

17

 

APPENDIX A

 

AGREEMENT REGARDING CHANGE IN CONTROL

FORFEITURE PROVISION REFERENCED IN SECTION 9

 

Option

 

The Option shall be cancelled and forfeited immediately if, in the sole opinion and discretion of the Committee or its delegate, the Employee:

 

(a)           commits a material breach of the terms and conditions of the Employee’s employment, including, but not limited to:

 

(i)            material breach by the Employee of the Code of Business Conduct;

 

(ii)           material breach by the Employee of the Employee’s employee agreement or employment contract, if any;

 

(iii)          commission by the Employee of an act of fraud, embezzlement or theft in connection with the Employee’s duties or in the course of the Employee’s employment;

 

(iv)          wrongful disclosure by the Employee of secret processes or confidential information of the Company or any of its Subsidiaries; or

 

(v)           failure by the Employee to substantially perform the duties of the Employee’s employment (other than any such failure resulting from the Employee’s Disability); or

 

(b)           to the extent permitted by applicable law, engagement by the Employee, directly or indirectly, for the benefit of the Employee or others, in any activity, employment or business which is competitive with the Company or any of its Subsidiaries.

 

Restricted Stock/Restricted Stock Units

 

Shares or units with respect to which Restrictions have not lapsed shall be cancelled and forfeited immediately if, in the sole opinion and discretion of the Committee or its delegate, the Employee engages in activity that constitutes Cause, whether or not the Employee experiences a Termination or remains employed with the Company or a Subsidiary.

 

Cause shall mean the following, as determined by the Company in its sole discretion:

 

(a)           material breach by the Employee of the terms and conditions of the Employee’s employment, including, but not limited to:

 

(i)            material breach by the Employee of the Code of Business Conduct;

 

1

 

(ii)           material breach by the Employee of the Employee’s employee agreement or employment contract, if any;

 

(iii)          commission by the Employee of an act of fraud, embezzlement or theft in connection with the Employee’s duties or in the course of the Employee’s employment;

 

(iv)          wrongful disclosure by the Employee of secret processes or confidential information of the Company or any of its Subsidiaries; or

 

(v)           failure by the Employee to substantially perform the duties of the Employee’s employment (other than any such failure resulting from the Employee’s Disability); or

 

(b)           to the extent permitted by applicable law, engagement by the Employee, directly or indirectly, for the benefit of the Employee or others, in any activity, employment or business which is competitive with the Company or any of its Subsidiaries.

 

UK Option

 

The Option shall be cancelled and forfeited immediately if, in the sole opinion and discretion of the Committee or its delegate, acting fairly and reasonably, the Employee:

 

(a)           engages in a material breach of the Code of Business Conduct;

 

(b)           commits an act of fraud, embezzlement, or theft in connection with the Employee’s duties or in the course of the Employee’s employment;

 

(c)           wrongfully discloses secret processes or confidential information of the Company or any of its Subsidiaries; or

 

(d)           to the extent permitted by applicable law, engages, directly or indirectly, for the benefit of the Employee or others, in any activity, employment or business which is competitive with the Company or any of its Subsidiaries.

 

2

 

APPENDIX B

 

AGREEMENT REGARDING CHANGE IN CONTROL
 ALTERNATIVE DISPUTE RESOLUTION PROCEDURES

 

The parties to the Agreement Regarding Change in Control (the “Agreement”) recognize that a bona fide dispute as to certain matters may arise from time to time during the term of the Agreement which relates to either party’s rights and/or obligations. To have such a dispute resolved by this Alternative Dispute Resolution (“ADR”) provision, a party first must send written notice of the dispute to the other party for attempted resolution by good faith negotiations between the Executive and the Company within twenty-eight (28) days after such notice is received (all references to “days” in the ADR provision are to calendar days).

 

If the matter has not been resolved within twenty-eight (28) days of the notice of dispute, or if the parties fail to meet within such twenty-eight (28) days, either party may initiate an ADR proceeding as provided herein. The parties shall have the right to be represented by counsel in such a proceeding.

 

1.             To begin an ADR proceeding, a party shall provide written notice to the other party of the issues to be resolved by ADR. Within fourteen (14) days after its receipt of such notice, the other party may, by written notice to the party initiating the ADR, add additional issues to be resolved within the same ADR.

 

2.             Within twenty-one (21) days following receipt of the original ADR notice, the parties shall select a mutually acceptable neutral to preside in the resolution of any disputes in this ADR proceeding. If the parties are unable to agree on a mutually acceptable neutral within such period, either party may request the President of the CPR Institute for Dispute Resolution (“CPR”), 366 Madison Avenue, 14th Floor, New York, New York 10017, to select a neutral pursuant to the following procedures:

 

(a)           The CPR shall submit to the parties a list of not less than five (5) candidates within fourteen (14) days after receipt of the request, along with a Curriculum Vitae for each candidate. No candidate shall be an employee, director or shareholder of either party or any of their subsidiaries or affiliates.

 

(b)           Such list shall include a statement of disclosure by each candidate of any circumstances likely to affect his or her impartiality.

 

(c)           Each party shall number the candidates in order of preference (with the number one (1) signifying the greatest preference) and shall deliver the list to the CPR within seven (7) days following receipt of the list of candidates. If a party believes a conflict of interest exists regarding any of the candidates, that party shall provide a written explanation of the conflict to the CPR along with its list showing its order of preference for the candidates. Any party failing to return a list of preferences on time shall be deemed to have no order of preference.

 

(d)           If the parties collectively have identified fewer than three (3) candidates deemed to have conflicts, the CPR immediately shall designate as the neutral the candidate for whom the parties collectively have indicated the greatest preference. If a tie

 

1

 

should result between two candidates, the CPR may designate either candidate. If the parties collectively have identified three (3) or more candidates deemed to have conflicts, the CPR shall review the explanations regarding conflicts and, in its sole discretion, may either (i) immediately designate as the neutral the candidate for whom the parties collectively have indicated the greatest preference, or (ii) issue a new list of not less than five (5) candidates, in which case the procedures set forth in subsections 2(a)-2(d) shall be repeated.

 

3.             No earlier than twenty-eight (28) days or later than fifty-six (56) days after selection, the neutral shall hold a hearing to resolve each of the issues identified by the parties. The ADR proceeding shall take place at a location agreed upon by the parties. If the parties cannot agree, the neutral shall designate a location other than the principal place of business of either party or any of the subsidiaries or affiliates.

 

4.             At least seven (7) days prior to the hearing, each party shall submit the following to the other party and the neutral:

 

(a)           a copy of all exhibits on which such party intends to rely in any oral or written presentation to the neutral;

 

(b)           a list of any witnesses such party intends to call at the hearing, and a short summary of the anticipated testimony of each witness;

 

(c)           a proposed ruling on each issue to be resolved, together with a request for a specific damage award or other remedy for each issue. The proposed rulings and remedies shall not contain any recitation of the facts or any legal arguments and shall not exceed one (1) page per issue.

 

(d)           a brief in support of such party’s proposed rulings and remedies, provided that the brief shall not exceed twenty (20) pages. This page limitation shall apply regardless of the number of issues raised in the ADR proceeding. Except as expressly set forth in subsections 4(a) - 4(d), no discovery shall be required or permitted by any means, including deposition, interrogatories, requests for admissions or production of documents.

 

5.             The hearing shall be conducted on two (2) consecutive days and shall be governed by the following rules:

 

(a)           Each party shall be entitled to five (5) hours of hearing time to present its case. The neutral shall determine whether each party has had the five (5) hours to which it is entitled.

 

(b)           Each party shall be entitled, but not required, to make an opening statement, to present regular or rebuttal testimony, documents or other evidence, to cross-examine witnesses and to make a closing argument. Cross-examination of witnesses shall occur immediately after their direct testimony, and cross-examination time shall be charged against the party conducting the cross-examination.

 

(c)           The party initiating the ADR shall begin the hearing and, if it chooses to make an opening statement, shall address not only issues it raised, but also any issues

 

2

 

raised by the responding party. The responding party, if it chooses to make an opening statement, also shall address all issues raised in the ADR. Thereafter, the presentation of regular and rebuttal testimony and documents, other evidence and closing arguments shall proceed in the same sequence.

 

(d)           Except when testifying, witnesses shall be excluded from the hearing until closing arguments.

 

(e)           Settlement negotiations, including any statements made therein, shall not be admissible under any circumstances. Affidavits prepared for purposes of the ADR hearing also shall not be admissible. As to all other matters, the neutral shall have sole discretion regarding the admissibility of any evidence.

 

6.             Within seven (7) days following completion of the hearing, each party may submit to the other party and the neutral a post-hearing brief in support of its proposed rulings and remedies, provided that such brief shall not contain or discuss any new evidence and shall not exceed ten (10) pages. This page limitation shall apply regardless of the number of issues raised in the ADR proceeding.

 

7.             The neutral shall rule on each disputed issue within fourteen (14) days following completion of the hearing. Such ruling shall adopt in its entirety the proposed ruling and remedy of one of the parties on each disputed issue but may adopt one party’s proposed rulings and remedies on some issues and the other party’s proposed rulings and remedies on other issues. The neutral shall not issue any written opinion or otherwise explain the basis of the ruling.

 

8.             The neutral shall be paid a reasonable fee plus expenses by the Company. The Company shall bear its own fees and expenses. The Executive’s fees and expenses shall be paid or reimbursed by the Company to the extent provided by the Agreement.

 

9.             The rulings of the neutral and the allocation of fees and expenses shall be binding, non-reviewable, and non-appealable, and may be entered as a final judgment in any court having jurisdiction.

 

10.          Except as provided in Section 9 or as required by law, the existence of the dispute, any settlement negotiations, the ADR hearing, any submissions (including exhibits, testimony, proposed rulings, and briefs), and the rulings shall be deemed confidential information. The neutral shall have the authority to impose sanctions for unauthorized disclosure of confidential information.

 

3Enertopia Corp. - Exhibit 10.1 - Filed by newsfilecorp.com

NOTE REGARDING FORWARD LOOKING STATEMENTS 

Certain information in this Offering Memorandum is “forward
looking information” within the meaning of applicable securities laws. Forward
looking information is frequently characterized by words such as “plan”,
“expect”, “project”, “intend”, “believe”, “anticipate”, “estimate” or other
similar words, or statements that certain events or conditions “may” or “will”
occur. Forward looking information involves significant known and unknown risks
and uncertainties. A number of factors, many of which are beyond the control of
the Issuer, could cause actual results to differ materially from the results
discussed in the forward looking information. Although the forward looking
information contained in this Offering Memorandum is based upon assumptions
which management of the Issuer believes to be reasonable, the Issuer cannot
assure investors that actual results will be consistent with this forward
looking information. Because of the risks, uncertainties and assumptions
inherent in forward looking information, prospective investors in the Issuer’s
securities should not place undue reliance on this forward looking information.

In particular, this Offering Memorandum contains forward
looking information pertaining to business development plans, mineral
exploration and other expectations, beliefs, plans, goals, objectives,
assumptions, information. Undue reliance should not be placed on forward-looking
information. Forward-looking information is based on current expectations,
estimates and projections that involve a number of risks which could cause
actual results to vary and, in some instances to differ materially from those
anticipated by the Issuer and described in the forward-looking information
contained in this Offering Memorandum.

Some but not all of the factors affecting forward-looking
statements include: the speculative nature of mining exploration, production and
development activities; changes in reserve estimates; the productivity of the
Issuer's proposed properties; changes in the operating costs; changes in
economic conditions and conditions in the resource, foreign exchange and other
financial markets; changes of the interest rates on borrowings; hedging
activities; changes in commodity prices; changes in the investments and
exploration expenditure levels; litigation; legislation; environmental,
judicial, regulatory, political and competitive developments in areas in which
the Issuer operates; technological, and mechanical and operational difficulties
encountered in connection with the Issuer's exploration and development
activities. The foregoing list of risk factors is not exhaustive. Prospective
investors should refer to the risk disclosures set out in the periodic reports
and other disclosure documents filed by the Issuer from time to time with
regulatory authorities. 

Forward-looking information is based on the estimates and
opinions of the Issuer at the time the information is presented. The Issuer
assumes no obligation to update forward-looking information should circumstances
or the Issuer’s estimates or opinions change, except as required by law. 

PROSPECTIVE INVESTORS SHOULD THOROUGHLY REVIEW THIS OFFERING
MEMORANDUM AND ARE ADVISED TO CONSULT WITH THEIR OWN LEGAL AND TAX ADVISORS
CONCERNING THIS INVESTMENT. 

2

ENERTOPIA CORPORATION 

 

OFFERING MEMORANDUM 
Form 45-10GF3 

 

July 16, 2012

Form 45-106F3 – Offering Memorandum for Qualifying Issuers

  	 Date: 
	 July 16, 2012. 

	 The Issuer: 

	            Name:
        
	 Enertopia Corp. (the "Issuer"
          or the “Company”) 

	            Head
          Office: 

          

        
	 950 – 1130 West Pender
          Street 

          Vancouver, British Columbia 

          Canada, V6E 4A4 

	            Issuer’s
          Solicitors: 
	 Macdonald Tuskey, Corporate
          and Securities Lawyers 4th Floor - 570 Granville Street, Vancouver BC
          V6C 3P1 

	            Phone
          Number: 
	 604-602-1033 

	            E-mail
          address: 
	 kameo300@gmail.com 

	            Fax
          Number: 
	 604-685-1602 

	            Current
          Listing and/or 

                     Quotation:
        
	 The Issuer is quoted for trading
          on the Over-the-Counter Bulletin Board and listed for trading on the
          Canadian National Stock Exchange. 

	            Reporting
          Jurisdictions: 
	 The Issuer is reporting in
          the Provinces of British Columbia and Ontario and in the United States.
        

	 The Offering:

	            Securities
          Offered: 
	 Up to 20,000,000 units (the
          "Units"), each Unit to consist of one common share of the Issuer (each,
          a “Share”) and one Share purchase warrant (each, a “Warrant”).
          Each Warrant will be exercisable into one further Share (a “Warrant
          Share”) at a price of US$0.10 per Warrant Share for a period of
          twelve (12) months following closing; or at a price of US$0.20 per warrant
          share for a period that is twelve months and one day to thirty-six (36)
          months following closing. See Item 5. 

	            Price
          per Security: 
	 US$0.05 per Unit. 

	            Maximum
          Offering 
	 The offering of Units is subject
          to a maximum overall subscription of 20,000,000 Units for gross proceeds
          of US$1,000,000 (the “Maximum Subscription”). 

	 
	 Funds available under the
          offering may not be sufficient to accomplish our proposed objectives.
        

	            Minimum
          Subscription 

                     Amount:
        
	 Each investor must invest a
          minimum of US$1,000. 

	            Payment
          terms: 
	 The subscription proceeds must
          accompany the form of subscription agreement attached to and forming
          a part of this Offering Memorandum, and shall be paid by immediately
          available good funds in either Canadian or US currency, drawn on a Canadian,
          or other chartered bank reasonably acceptable to the Issuer, made payable
          by certified cheque and/or bank draft and made payable and delivered
          to the Issuer’s Solicitors, Macdonald Tuskey, Corporate and Securities
          Lawyers, at 4th Floor - 570 Granville Street, Vancouver BC V6C 3P1.
          Alternatively, payment of the subscription proceeds can be made by wire
          transfer of funds to a bank account of the Issuer, the particulars of
          which will be provided to investors. 

	            Proposed
          Closing Date: 
	 Closings will occur periodically
          on a "first come, first served" basis. See Item 5. 

	            Income
          Tax Consequences: 
	 There are important tax consequences
          to these securities. See item 6. 

	            Selling
          Agent: 
	 Yes. See item 7. 

	 Resale Restrictions: 

        
	 You will be restricted from
          selling your securities for 4 months and a day. See item 10. 

        There are also United States resale restrictions on the
          securities. 

	 Purchaser’s Rights: 
	 You have two business days
          to cancel your agreement to purchase these securities. If there is a
          misrepresentation in this Offering Memorandum, you have the right to
          sue either for damages or to cancel the agreement. See item 11. 

No securities regulatory authority or regulator has assessed
the merits of these securities or reviewed this Offering Memorandum. Any
representation to the contrary is an offence. This is a risky investment. See
item 8. 

Currency 

In this Offering Memorandum, unless otherwise noted, all dollar
amounts are expressed in US dollars. An exchange rate of 1.00 is used in this
Offering Memorandum when discussing the conversion of United States dollars to
Canadian dollars and an exchange rate of 1.00 is used for conversion of Canadian
dollars to United States dollars. 

ITEM 1: USE OF AVAILABLE FUNDS 

Available Funds 

Upon completion of the Offering, the Issuer anticipates that
  the following funds will be available to it for the next twelve mon1th period:

  	
	
	Assuming max. 
Offering
  
	A 	Amount to be raised by this offering 	$1,000,000 
	B 	Selling commissions and fees 	$100,000 
	C 	Estimated offering costs (e.g., legal, accounting,
        audit) 	$25,000 
	D 	Available funds: D = A – (B + C) 	$875,000 
	E 	Additional sources of funding required 	$0 
	F 	Working capital deficiency (May 31, 2012) 	($149,070) 
	G 	Total: G = (D + E) – F 	$725,930

Use of Available Funds 

The Issuer anticipates that up to $875,000 will be available to
it upon conclusion of the Maximum Subscription. The principal purposes for which
these funds will be used over the next twelve months are as follows: 

  	Description 	Amount 
	Maximum
        

        PP 
	Property Payments (US $120,000) (1) 	$120,000 
	Phase IA Drilling Copper Hills (US $300,000) (1)
    	$300,000 
	Surface Exploration Mildred Peak (US$50,000) (1)
    	$50,000 
	General and administrative expenses 
	$155,000 

	As a reserve for unallocated working capital 	$250,000 
	Total: 	$875,000

Note:

(1)       Based upon
an exchange rate of 1.0. 

Reallocation 

We intend to spend the available funds as stated. We will
reallocate funds only for sound business reasons. 

Insufficient Funds 

The funds available as a result of the Offering may not be
sufficient to accomplish the Issuer’s proposed objectives and there is no
assurance that alternative financing will be available. 

ITEM 2: INFORMATION ABOUT THE ISSUER 

General 

The Issuer is a mineral resource and renewable energy company
that is pursuing business opportunities in mineral resource exploration and
several clean technology sectors. 

Reference is made to Item 1. (Business) in the Issuer’s Form
10-K (Annual Information Form), filed on SEDAR on November 29, 2011, for
disclosure relating to the Issuer’s business history and current business.

Mineral Resource Division 

The Issuer’s mineral resource properties are currently in the
exploration stage. The Issuer holds the rights, through two separate mineral
property option agreements, to acquire the rights to two properties, known as
the Copper Hills Project in New Mexico and the Mildred Peak Project in Arizona.

The Issuer has and intends to conduct exploration activities on
its Copper Hills Project in New Mexico in the search for base metals,
specifically copper and silver. 

Project Description and Location: 

The following information with respect to the Copper Hills
Project is derived from a National Instrument 43-101 compliant report entitled
"Technical Repot on the Copper Hills Property Cat Mountain Mining District,
Socorra County, New Mexico, USA". The full text of the Technical Report is
available for review at the office of the Company at 950 – 1130 West Pender
Street, Vancouver, British Columbia, Canada V6E 4A4 and may also be accessed
online, under the Company's SEDAR profile at www.sedar.com. 

Property Description and Location 

Location

The Copper Hills property is located in Socorro County, New
Mexico, approximately 15 km west of the village of Magdalena. The Copper Hills
property consists of a group of 76 contiguous unpatented lode mining claims.
Access is via US Hwy 60 from the city of Socorro, some 60 km to the east. The
property straddles two United States Geological Survey 7.5’ quadrangle map
sheets (Tres Montosas, New Mexico [west] and Arroyo Landavaso, New Mexico
[east]). The claims cover parts of: Meridian 23 Township 3S Range 5W Sections 6,
7 Meridian 23 Township 3S Range 6W Sections 1,12 

Property Description 

The Copper Hills property consists of 76 contiguous unpatented
lode mining claims (COPPER HILLS #1, Wildhorse 1-15; 21-24; 30-75 and Timberwolf
16-20; 25-29). All of the claims are owned or controlled by Wildhorse Copper
(AZ), Inc., an Arizona corporation. Wildhorse Copper (AZ), Inc. is a wholly
owned subsidiary of Wildhorse Copper, Inc., a British Columbia, Canada
corporation. The combined area of the landholdings represents approximately 603
hectares (~1,550 acres). The property has not been legally surveyed.

The Bureau of Land Management (United States Federal
government) holds the surface rights. There is no privately held land on the
Copper Hills property. 

The 66 Wildhorse claims and 10 Timber Wolf claims were located
with the use of a global positioning system (“GPS”) and tied to section corners
and geodetic control points. The claim staking work was carried out on behalf of
Wildhorse by Environmental Field Services, LLC, of Oracle, Arizona, a firm
specializing in land surveying and claim staking. This work was completed
between February 28 and October 1, 2011.

A yearly maintenance fee of US$140 per claim must be paid to
the Bureau of Land Management on or before September 1 of each year to maintain
the title to the claims in good standing. In addition an annual “Notice of
Intent to Hold“ for each claim must be filed with the Socorro County Recorder.
The county recordation filing fee per claim is $9.00 per document page plus
$2.00 per each additional page.

Maintenance and recordation fees through the 2011 maintenance year have been paid to the Bureau of Land Management and the Socorro County Recorder's office.

To the author's knowledge the property interest is subject only to the normal environmental regulations and liabilities as stipulated under the laws of New Mexico and the United States of America and the sufficiency of rights for exploration
and mining operations on the property is subject only to the normal procedures and permits under the laws of the United States of America.

Prior to the commencement of any activity that may produce a disturbance to the surface (i.e. drilling), Enertopia will need to provide the Bureau of Land Management a financial guarantee under an approved "Plan of Operations". The
"bond" amount must cover the estimated cost to contract a third party to reclaim the disturbance due to operations. The Bureau of Land Management State office will authorize and maintain the bond instrument. Permits will then be needed
to required construct drill sites and drainage sumps.

At the time of this report Enertopia had not made application for any permits nor had posted a financial assurance bond. Reclamation of some disturbances by previous owners has occurred. The author understands that the Bureau of Land Management
covered and secured at least one site (a shallow shaft) on the property in late 2007. 

Enertopia Corporation has entered into a definitive mineral property option agreement dated April 11, 2011 with Wildhorse Copper Inc. and its wholly owned subsidiary Wildhorse Copper (AZ) Inc. respecting an option to earn a 100% interest, subject to
a 1% NSR capped to a maximum of $2,000,000 on one claim, in the Copper Hills property. The Copper Hills property is comprised of 56 located mining claims covering a total of 1,150 acres (468 hectares) located in Socorro County, New Mexico, USA.
Wildhorse Copper Inc. holds the Copper Hills property directly and indirectly through property purchase agreements between Wildhorse Copper (AZ) Inc. and third parties (collectively, the "Indirect Agreements"). Pursuant to the option agreement
between Enertopia Corporation and Wildhorse Copper Inc., Wildhorse has assigned the Indirect Agreements to Enertopia Corporation.

In order to earn the interest in the Copper Hills property, Enertopia Corporation is required to make aggregate cash payments of $591,650 over an eight year period and issue an aggregate of 1,000,000 shares of its common stock over a three year
period. As of April 11, 2011, Enertopia Corporation has made aggregate cash payments of $69,150 to the respective claim owners and issued 650,000 shares to Wildhorse Copper Inc. 150,000 of the securities issued in the acquisition are subject to
a hold period in Canada expiring on July 30, 2012. These securities are also restricted for United States securities laws purposes and are subject to the applicable hold periods.

Geological Setting 

The property is located within the physiographic province known as the Datil-Mogollon Section, locally characterized by volcanic highlands.

The geology of the project area was described by Wilkinson (1976). A northerly trending fault separates volcanic rocks to the west from younger piedmont gravels, alluvium and basalt to the east. Volcanic rocks are dominantly Oligocene 'spears
Formation" andesitic volcaniclastics. The important "Nipple Mountain" tuff member is an interbedded lithic and variably welded tuff with deposition controlled by northeast and east-northeast trending, partly fault bounded
paleovalleys. The overlying "Hells Mesa Formation" and the "A-L Peak Tuff" represents a change to ash flow volcanism related to the Mt. Withington caldera collapse. The caldera margin is situated 7 1⁄2 km south of the
Copper Hills prospect.

Structurally the property is situated within a north-northwest trending uplifted block bounded to the east by the "Mulligan Gulch" graben. Three major structural trends are present at Copper Hills. The west-northwest trending
"Capitan" lineament is a pre-volcanic feature that was reactivated in the Oligocene. The northeast to east-northeast trending "Morenci-Magdalena" lineament is also a basement feature that in part controlled deposition of the
Nipple Mountain tuff. The north to 335° trend reflects the monoclinal eastern edge of the uplifted block and controlled the emplacement of intrusive stocks and later Basin and Range faulting. Convergence of the three structural trends in the
vicinity of the Copper Hills prospect resulted in an intense shattering of the rocks.

Mineralization 

Mineralization at Copper Hills includes fracture controlled and disseminated copper oxides (plus silver) at the Copper Hills prospect and epithermal gold-silver veins. Wilkinson (1976) describes previous work conducted on the property. Various
stakeholders held mining claims in the area almost continuously between 1950 and 2007. During the 1950's minor copper oxide production from the Copper Hills main outcrop took place and five short holes were drilled. In 1968 the Banner Mining
Company reportedly drilled a deeper hole to 1,622 ft (494.5 m) and intersected pervasive propylitic alteration with abundant fresh and oxidized pyrite throughout the hole. Samples taken from the last 100 ft reportedly contained small amounts of
pyrite plus chalcopyrite, sphalerite and galena. Numerous other prospecting pits and shafts are found on the property and most appear to be related to exploration and minor extraction of minerals associated with epithermal vein type systems. The
Banner hole is on the eastern edge of a strong IP-chargeability anomaly defined by the IP survey completed by Wright geophysics, on behalf of the Company in August, 2011.

The deposit model being investigated by Enertopia for economic potential at the Copper Hills project is that of epigenetic supergene Cu-Ag deposits, with potential for deeper porphyry-style mineralization.

The most recent exploration work done at Copper Hills was by Coyote Copper in the early part of 2008 which included a ground magnetics geophysical survey, followed by a reconnaissance and field verification mapping and rock chip sampling program and
a soil sampling geochemical survey. Enertopia engaged Wright geophysical to manage an IP geophysical survey conducted in August, 2011. Wright also interpreted the results and provided a technical report. The original author of this report (Wiese)
visited the Copper Hills project in early February, 2008 on behalf of Coyote Copper. The present author (Cleary) visited the property on August 31, 2011, on behalf of Enertopia Corp.

Compilation of historical information on the Copper Hills prospect combined with the outcome of the above mentioned exploration work, as carried out by Coyote Copper and its consultants, have herein resulted in a recommendation for further work to
be performed by Enertopia Corporation.

This report has been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). The original report was prepared in April, 2011 by Claus Wiese, P.Eng., of Tucson, Arizona,
USA, an independent Qualified Person (as defined within the connotation of NI 43-101). This subsequent update to the report was prepared in September, 2011 by John G. Cleary, CPG & RG of Reno, Nevada, USA, also an independent Qualified Person
(as defined within the connotation of NI 43-101). The material change to the project during that time interval was the completion of the ground IP-Resistivity survey, which Wiese recommended in the original report. 

Accessibility, Climate, Local Resources, Infrastructure and Physiography

The Copper Hills project area is located within Socorro County, New Mexico, approximately 15 km west of the village of Magdalena (pop. 900). The City of Socorro (pop. 9,000) located about 60 km west of the 

property offers a broad range of services. Albuquerque, New Mexico (pop.+500,000) is approximately 150 km north-northeast of the property, and is a major center for equipment, supplies, labor, logistics and services.

There is easy access to the property from Socorro (through Magdalena) along US Hwy 60, which crosses the property. Electric power and fiber optic telecommunications parallel Hwy 60. There are numerous unimproved ranch roads and trails that provide
good access to the remainder of the area.

The property is located within the physiographic province known as the Datil-Mogollon Section, locally characterized by volcanic highlands (Hawley, 1986). The claim group is situated between the Gallinas Mountains to the north and the San Mateo
Mountains in the south. Local terrain is flat to rolling hills with elevations between 2,125 m (6,970 ft) and 2,260 m (7,410 ft). The area is part of New Mexico's woodland rangelands; vegetation is classified as belonging to the Juniper
Savanna ecotone. Juniper, cedar and some pinon bushes are common atop grassy surface growth.

The climate is considered semi-arid with precipitation between 1-2 cm per month and 5 cm per month average during summer monsoon season (July -  September). The temperature is mild to moderate. Ambient temperatures for this region range from
-5°C to +10°C (fall/winter) and +5°C to +30°C (spring/summer).

The physiography and climate pose no significant difficulties to exploration and mining activities in the area. The property has ample room for potential mine and mill operations and facilities. 

History 

Mining History -  Socorro County

The following mining history for the area is summarized from Padilla (2001).

In 1866 lead was discovered in the Magdalena district, and in 1867 silver was found in the Socorro Peak district. By the 1880's, the mining boom in Socorro County was in full swing, with crowded camps and tent cities dotting the land. In a six-month
period in 1880-81, nearly 3,000 different mineral deposits were located and dozens of new towns developed including Kelly (population 5,000) and Magdalena, the two principal boom towns in Socorro County. Magdalena, which had begun as a collection of
tents, grew substantially with the development of a railroad line from Socorro. A smelting plant erected in 1881 near Socorro treated ore from the Kelly and other mines until 1893. In 1896, a new smelter was constructed in Magdalena which then
became the smelting town for the mine operations in both Magdalena and Kelly districts. 

In a forty-year period, from the 1880's to the 1920's, Magdalena district production was valued at some $60 million. In addition, coal mines were opened near Carthage between 1880 and 1885 to supply fuel for locomotives, mills, and smelters.
This further increased the mineral production level during Socorro County's boom years.

In the early 1900's, as lead and silver were being mined, a zinc carbonate mineral, smithsonite, was discovered at Kelly. Smithsonite was previously discarded as waste rock.. Kelly's second wind of prosperity started as smithsonite was
recovered from tailings piles and other leased properties. The mines of the Kelly area became New Mexico's leading zinc producers and were known for the high quality smithsonite mined from the area. By 1931 the smithsonite deposits were
exhausted and mining throughout the district decreased. 

Previous Work  

Prior to Coyote acquiring its land position in the Copper Hills area, various stake holders had actively held mining claims there continuously between 1950 and 2007. The most active period occurred between 1950 and 1995 in which a core part of the
property was held by a consortium of partners for as many as 45 years.

Previous work in and surrounding the Copper Hills project area was focused on the epithermal gold-silver vein mineralization in the Cat Mountain Mining district and disseminated copper (+/- silver) mineralization at the Copper Hills prospect.
Wilkinson (1976) provides an overview of known historical work and previous operators.

Cat Mountain

The Cat Mountain gold mining district, 1.5 miles (2.4 km) south of the Copper Hills property, was active around 1900. A 20-stamp amalgamating mill was erected in 1902. The mill operated for a short time until 1903 when it was closed down. It was
reported (Jones, 1904) that the gold mineralization at Cat Mountain was mainly refractory in nature. Hence, recovery was poor owing to the technology of the time. Production figures are not documented. The author is not aware of any other
particulars including names of the operators.

Copper Hills prospect

The Copper Hills prospect is located in Township 3S, Range 5W and Section 6, approximately 1600 ft (about 490 m) south of US Hwy 60. It is an oxide copper body with mineralization disseminated in a highly silicified and fractured Tertiary volcanic
tuff unit. Workings consist of a shaft and several excavations, one of which is 130 m in length. It is thought this work was carried out in the early 1950's, but details are not confirmed at this time. The author is not specifically aware of
who all the individual operators were and has relied on Wilkinson's (1976) report for these descriptions. Total production was said to be 356 tons which averaged 3.01 oz. silver per ton and 0.81% copper. Trace amounts of gold and up to 1.33%
lead have also been reported.

Historic Drilling

On the ridge above the excavation at the Copper Hills prospect, 5 short drill holes were completed, oriented along a northeast-southwest line. It is thought this drilling was done during the early 1950's. Wilkinson (1976) reports that the
drill holes, apparently completed during the 1950's, all intersected copper mineralization.

In 1968, Banner Mining Company drilled a vertical diamond drill hole to 1,622 ft. (494.5 m.). It was located approximately 10 m south of the Copper Hills prospect. Copper, lead and zinc sulphide mineralization was encountered towards the bottom of
the hole. The author has not seen the original report by Banner and has relied on Wilkinson (1976). 

Sampling and Security 

Mayor undertook to sample selected mineralized outcrops. A total of 55 samples were collected as follows: 21 from the Copper Hills prospect, 18 from vein prospects and 16 of the Nipple Mountain tuff. The material was broken using a rock hammer and
the pieces were packed in heavy cloth sample bags, tied with cloth laces, and marked with a unique sample identification number. The sample location was taken using a handheld GPS device (setup in UTM Zone 13N coordinates and using the NAD27 datum).
The sample was geologically described and together with the location information recorded into a field book. Sample weights ranged from 1.5 to 6 kg.

 All samples were taken back to Tucson, Arizona by Mayor from
  where he shipped them to ALS Chemex Laboratories in Elko, Nevada for preparation
  and subsequent analysis in Vancouver, Canada.

Other Work

Numerous prospecting pits and shafts are found on the property north of Hwy. US 60. Most appear to be related to exploration and extraction of minerals associated with epithermal vein type systems. It is unclear when, or over what period of time
this work was carried out, or by whom.

Mineral Resource and Mineral Reserves

NONE 

Mining Operations

NONE 

Exploration Proposal 

A two phase exploration program has been proposed. Phase 1A & 1B would commence with 3 core drill holes to an average depth of 550 meters designed to test the strong IP-chargeability anomalies defined by the geophysical survey completed in
August, 2011. In addition, reverse circulation drilling will be undertaken to verify the grade and extent of the copper (+silver) mineralization as documented by previous operators, within and peripheral to the Copper Hills Prospect. This is will
require about 750 m of drilling in 10 reverse circulation holes each about 75 m in depth spaced on a 50 m x 50 m grid. This phase 1A is estimated to consist of 10 to 15 shallow RC or Diamond drill holes depending on rig availability under our
proposed budget estimate of $300,000.The total Phase 1 program will cost $720,000. Contingent upon Phase 1 providing positive results it is recommended for Phase 2 that additional drilling be undertaken to add to the grade and extent of the
copper (+silver) mineralization as documented by previous operators, within and peripheral to the Copper Hills Prospect. This is will require about 1,500 m of drilling in 20 reverse circulation holes each about 75 m in depth designed to extend the a
50 m x 50 m grid.

An additional 2,500 m of core drilling is recommended to offset the two core holes into the IP anomaly. Other facets of a Phase 2 program include conducting additional geological mapping, prospecting and sampling of priority targets based on
geophysical and geochemical survey interpretations. The cost of Phase 2 will be about $1,210,000. The total for both phases is US$1,930,000.

Additionally, the Issuer intends to conduct exploration activities on its Mildred Peak Project in Arizona in the search for precious metals, specifically gold and silver.

Reference is made to Item 1. (Business) in the Issuer's Form 10-K (Annual Information Form), filed on SEDAR on November 29, 2011, for disclosure relating to the mineral property agreements for each of the Copper Hills Project and the
Mildred Peak Project. 

Reference is made to the Issuer's Technical Report (NI 43-101), filed on SEDAR on November 2, 2011, for disclosure relating to the Copper Hills Project. 

Clean Technology Division 

The Issuer is currently involved in the following clean technology sectors, Solar Thermal (Hot Water), Energy Retrofits and Recovery and Solar powered Filtered Drinking Water.

The Issuer's involvement in the clean technology sector is indirect through equity holdings in companies that are involved in each respective sector. 

The Issuer currently owns an 8.25% equity investment into Pro Eco Energy USA Ltd., a clean tech energy company involved in designing, developing and installing solar energy solutions for commercial and residential customers. 

Additionally, the Issuer, as of November 30, 2011, held an 8.56% interest in Global Solar Water Power Systems Inc., (“GSWPS”) a private company beneficially owned by Mark Snyder, our company's Chief Technical Officer.  GSWPS owns
certain technology invented and developed by Mark Snyder for the design and manufacture of certain water filtration equipment, and is pursuing other clean energy opportunities.  Current products offered by GSWPS include a portable solar powered
trailer mounted water purification unit that can be delivered and operated nearly anywhere in the world and can provide a village, resort, or remote work-camps with all their drinking water and domestic water requirements. 

Reference is made to Item 1. (Business) in the Issuer's Form 10-K (Annual Information Form), filed on SEDAR on November 29, 2011, for disclosure relating to the Issuer's clean technology division. 

Existing Documents Incorporated by Reference 

Information has been incorporated by reference into this Offering Memorandum from documents listed in the table below, which have been filed with securities regulatory authorities or regulators in Canada. The documents incorporated by reference are
available for viewing on the SEDAR website at www.sedar.com. In addition, copies of the documents may be obtained on request without charge from the Issuer, c/o Macdonald Tuskey Corporate and Securities Lawyers,
Suite 400-570 Granville Street, Vancouver, BC V6C 3P1 Attention: William L. Macdonald. 

Documents listed in the table and information provided in those documents are not incorporated by reference to the extent that their contents are modified or superseded by a statement in this Offering Memorandum or in any other subsequently filed
document that is also incorporated by reference in this Offering Memorandum. 

  	

        
Description of Document 	Date of 

        Document
      and/or 
SEDAR Filing 
	Interim Financial Statements (Form 10-Q) (includes May 31,
      2012 Financial Statements and MD&A) 	July 10, 2012 
	News Release of the Issuer, announcing Mildred Peak and
      Copper Hills update 	June 12, 2012 
	News Release of the Issuer, Announcing $1,000,000 giveaway
    	June 7, 2012 
	News Release of the Issuer, announcing Mildred Peak
      drilling update 	May 24, 2012 
	News Release of the Issuer, announcing terms of the
      Offering 	May 14, 2012 
	Material Change Report relating to the dissemination of the
      Presidents Report 	April 23, 2012 
	Interim Financial Statements (Form 10-Q) (includes February
      29, 2012 Financial Statements and MD&A) 	April 16, 2012 
	Material Change Report relating to the closing of a
      $208,000 first tranche of a equity financing 	April 16, 2012 
	Material Change Report relating to the dissemination of
      news regarding shareholder votes cast at the recent Annual General Meeting
    	April 16, 2012 
	Material Change Report relating to the settlement of debt
      for equity 	April 11, 2012 
	Notice of Annual General Meeting 	April 11, 2012 
	News Release of the Issuer, Mildred Peak ROFR property to
      be diamond- drilled 	April 4, 2012 
	Material Change Report relating to annual property payment
    	March 30, 2012 
	Material Change Report relating to entry into agreement
      with Coal Harbor Communications 	March 27, 2012 
	Material Change Report relating to one new Director and two
      new Advisors 	March 19, 2012 
	Amended Form 10-K (includes August 31, 2011 Financial
      Statements & MD&A) 	March 14, 2012 
	News Release of the Issuer, announcing terms of the
      Offering 	February10, 2012 
	News Release of the Issuer, announcing terms of the
      Director’s Loan 	February 9, 2012 
	News Release, staking of additional claims Copper Hills 	February 2, 2012

  	

        
Description of Document 	Date of 

        Document
      and/or 
SEDAR Filing 
	Interim Financial Statements (Form 10-Q) (includes November
      30, 2011 Financial Statements and MD&A) 	January 17, 2012 
	Annual Information Form (Form 10-K) (includes August 31,
      2011 Financial Statements & MD&A) 	November 29, 2011 
	Material Change Report relating to entry into agreement
      with Trident Financial 	November 15, 2011 
	News Release of the Issuer, Copper Hills 43-101 	November 2, 2011 
	News Release of the Issuer, Mildred Peak Aquisition 	October 11, 2011 
	Material Change Report relating to Mildred Peak Aquisition
    	October 11, 2011 
	Material Change Report relating to entry into agreement
      with Peter Grandich 	October 3, 2011 
	News Release of the Issuer, IP/Res Survey Copper Hills 	September 12, 2011
  

Existing Documents Not Incorporated by Reference 

Other documents available on the SEDAR website (for example,
most press releases, take-over bid circulars, prospectuses and rights offering
circulars) are not incorporated by reference into this Offering Memorandum
unless they are specifically referenced in the table above. Your rights as
described in Item 11 of this Offering Memorandum apply only in respect of
information contained in this Offering Memorandum and documents or information
incorporated by reference. 

Future Documents Not Incorporated by Reference 

Documents filed after the date of this Offering Memorandum are
not deemed to be incorporated into this Offering Memorandum. However, if you
subscribe for securities and an event occurs, or there is a change in the
Issuer's business or affairs, that makes the Certificate to this Offering
Memorandum no longer true, the Issuer will provide you with an update of this
Offering Memorandum, including a newly dated and signed Certificate, and will
not accept your subscription until you have re-signed the subscription
agreement. 

ITEM 3: INTERESTS OF DIRECTORS, EXECUTIVE OFFICERS,
PROMOTERS AND PRINCIPAL HOLDERS 

To the knowledge of the Issuer, the following persons or
company beneficially owns, directly or indirectly, or exercises control or
direction over, Common Shares carrying more than 10% of the voting rights
attached to the outstanding Common Shares of the Issuer. 

	
Name and Address of Beneficial
      Owner 	Position with the 
Issuer
	Amount and Nature of 
Beneficial
      Ownership 	Percentage 
of Class 
	Chris Bunka 
Kelowna, British Columbia,
      Canada 
	Chairman, Director 
and Chief Executive
      
Officer 	4,238,833(1) 

	15.26% 

	Robert McAllister 
Kelowna, British
      Columbia, Canada 	President and Director 
	3,587,000(2) 
	12.92% 

	Bal Bhullar 
Vancouver, British Columbia,
      Canada 	Chief Financial 
Officer 	501,000(3) 
	1.82% 

	Mark Snyder 
San Diego, California, USA
	Chief Technical 
Officer 	700,000(4) 
	2.57% 

	Donald Findlay 
Calgary, Alberta, Canada
    	Director 
	202,000(5) 
	0.74% 

	Greg Dawson 
Vancouver, British Columbia,
      Canada 	Director 
	250,000(6) 
	0.92% 

	Tom Ihrke 
Charleston, South Carolina, USA
    	Senior Vice President 
	290,625(7) 
	1.07% 

	John Thomas 
Vancouver, British Columbia,
      Canada 	Director 
	250,000(8) 
	0 92% 

Notes: (1) Consists of beneficial ownership of an
aggregate of 4,238,833 shares of common stock of the Issuer broken down as
follows: (i) 999,500 shares of common stock held directly by Mr. Bunka, (ii)
705,000 shares of common stock acquirable on exercise of outstanding stock
options within 60 days of the date hereof; (iii) 200,000 shares of common stock
registered in the name of Kelowna Resource Group Ltd., Mr. Bunka beneficially
owns all of the voting shares of Kelowna Resource Group Ltd.; and (iv) 2,334,333
shares of common stock registered in the name of C.A.B. Financial Service Ltd.,
Mr. Bunka beneficially owns all of the voting shares of C.A.B. Financial Service
Ltd. 

(2) Consists of beneficial ownership of an aggregate
of 3,587,000 shares of common stock of the Issuer broken down as follows: (i)
2,882,000 shares of common stock held directly by Mr. McAllister, and (ii)
705,000 shares of common stock acquirable on exercise of outstanding stock
options within 60 days of the date hereof. 

(3) Consists of beneficial ownership of an aggregate
of 501,000 shares of common stock of the Issuer broken down as follows: (i)
1,000 shares of common stock held directly by Ms. Bal Bhullar, and (ii) 500,000
shares of common stock acquirable on exercise of outstanding stock options
within 60 days hereof. 

(4) Consists of beneficial ownership of an aggregate
of 700,000 shares of common stock of the Issuer broken down as follows: (i)
500,000 shares of common stock held directly by Mr. Mark Snyder; (ii) 200,000
shares of common stock acquirable on exercise of outstanding stock options
within 60 days hereof. 

(5) Consists of beneficial ownership of an aggregate
of 202,000 shares of common stock of the Issuer broken down as follows: (i)
1,000 shares of common stock held directly by Mr. Donald Findlay; (ii) 1,000
shares of common stock acquirable on the exercise of outstanding warrants within
60 days of the date hereof; (iii) 200,000 shares of common stock acquirable on
exercise of outstanding stock options within 60 days hereof. 

(6) Consists of beneficial ownership of an aggregate
of 250,000 shares of common stock of the Issuer broken down as follows: (i)
250,000 shares of common stock acquirable on exercise of outstanding stock
options within 60 days hereof.

(7) Consists of beneficial ownership of an aggregate
of 290,625 shares of common stock of the Issuer broken down as follows: (i)
140,625 shares of common stock held directly by Mr. Tom Ihrke; and (ii) 150,000
shares of common stock acquirable on the exercise f outstanding stock option
within 60 days of the date hereof. 

(8) Consists of beneficial ownership of an aggregate
of 250,000 shares of common stock of the Issuer broken down as follows: (i)
250,000 shares of common stock acquirable on exercise of outstanding stock
options within 60 days hereof. 

You can obtain further information about directors and
executive officers from the Issuer’s Form 10-K (Annual Information Form) filed
on SEDAR on November 29, 2011. 

Current information regarding the securities held by directors,
executive officers and principal holders can be obtained from the SEDI website
at www.sedi.ca and from the U.S. Securities
and Exchange Commission’s EDGAR system at www.sec.gov. The Issuer cannot
guarantee the accuracy of this information. 

Loans 

A loan exists in the form of a CDN $50,000 non secured loan
bearing 10%, repayable at any time by the Company and currently on a month to
month basis. The lender is President and a Director of the Company. 

ITEM 4: CAPITAL STRUCTURE 

	
Description 
of security 	Number 
authorized 
to be
      issued 	
Price per 
security 	Number 
outstanding as at
      
July 16, 2012 	Number 
outstanding after
      
max. offering 
	Common Shares 	200,000,000 	N/A(1) 	27,067,615 	47,067,615 
	Offering Warrants(2) 	22,000,000 	US$0.10 – US$0.20 	0 	22,000,000 
	Warrants(3) 	11,442,500 	CDN $0.20 - US$0.30 	11,442,500 	11,442,500 
	Options(4) 	4,225,000 	US$0.10 – US$0.25 	4,225,000 	4,225,000 
	TOTAL 	  	  	42,735,115 	84,735,115

Notes: 

	(1) 	
      Common shares of the Issuer have been issued from
      treasury at prices ranging from US$0.02 per share to US$0.50 per
      Share.

	 	 
	(2) 	
      Represents the Warrants to be issued under this
      Offering (including broker warrants), exercisable to acquire common shares
      at an exercise price of US $0.10 per common share for
  a

		
      period of twelve months from the date of issuance and
      at an exercise price of US $0.20 thereafter for a period of 36 months from
      the date of issuance.

	 	 
	(3) 	
      Represents an aggregate of 9,218,300 warrants
      exercisable at the price of CDN $0.20 until March 3, 2013, and an
      aggregate of 2,224,200 warrants exercisable at the price of US $0.15 until
      April 16, 2013 and US $0.20 from April 17 until April 16,
  2014.

	 	 
	(4) 	
      Represents incentive stock options granted pursuant to
      the Issuer’s former and current equity compensation and stock option
      plans.

ITEM 5: SECURITIES OFFERED 

Terms of Securities 

The Issuer is offering for sale by way of private placement
(the "Offering") up to 20,000,000 units (the "Units"), each Unit to consist of
one common share (each, a “Share”) of the Issuer and one Share purchase warrant
(each, a “Warrant”). Each Warrant will be exercisable into one further Share (a
“Warrant Share”) at a price of US$0.10 per Warrant Share for a period of twelve
(12) months following closing; or at a price of US$0.20 per warrant share for a
period that is twelve months and one day to thirty-six (36) months following
closing.

The holders of common shares are entitled to one vote at
meetings of shareholders for each share held and all common shares rank equally
with respect to the payment of dividends and on any distribution of the assets
of the Issuer on dissolution or winding up. 

Reference is also made to Item 7 (Compensation Paid to Sellers
and Finders) below for particulars with respect to commissions and finders' fees
payable in connection with the Offering. 

Subscription Procedure 

In order to subscribe for the Units, purchasers will be
required to complete and deliver the following documents to the Issuer or its
legal counsel on or before August 15 2012, or such other date as the Issuer may
determine. 

	1. 	
      a completed subscription agreement in the form attached
      hereto as Schedule "A", with such subscription agreement containing, among
      other things, representations by the subscriber that it is duly authorized
      to purchase the Units, that it is purchasing the Units for investment and
      not with a view for resale, and as to its status to purchase the Units on
      a private placement basis;

	 	 
	2. 	
      a completed copy of a Risk Acknowledgment (Form 45-106F4)
      in the form attached hereto as Schedule "B"; and

	 	 
	3. 	
      cash, solicitor's trust cheque, certified cheque, bank
      draft, money order in the amount of your investment payable to "Enertopia
      Corporation".

Your subscription funds will be held in trust until midnight on
the second business day after the day on which the Issuer or its legal counsel
received your signed subscription agreement and if the closing is after this
time, the Issuer and/or its legal counsel will hold the funds in trust pending
closing. We expect to close the first tranche of this Offering on or before
August 15 2012. 

The Issuer reserves the right to accept or reject subscriptions
in whole or in part at its discretion and to close the subscription books at any
time without notice. Any subscription funds or subscriptions that the Issuer
does not accept will be returned promptly after it has been determined not to
accept the funds. 

At the closing of the Offering, or as soon as practicable
thereafter, you will receive certificates representing the Shares and
certificates representing the Warrants, provided that the subscription price has
been paid in full. 

ITEM 6: INCOME TAX CONSEQUENCES AND RRSP ELIGIBILITY

The Issuer has not undertaken a study of potential income tax
consequences to investors. 

You should consult your own professional advisers to obtain
advice on the income tax consequences that apply to you. 

Not all securities are eligible for investment in a registered
retirement savings plan (“RRSP”) . You should consult your own professional
advisers to obtain advice on the RRSP eligibility of these securities. 

ITEM 7: COMPENSATION PAID TO SELLERS AND FINDERS 

The Issuer may pay finder's fees to certain arm's length
parties (the "Finders") in connection with the completion of the Offering equal
to 10% of the aggregate subscription proceeds realized from the sale of the
Units by the respective Finder, payable in cash or Shares, and Broker’s Warrants
equal to 10% of the aggregate subscription proceeds. Each Broker’s Warrant will
be exercisable into one further Share (a “Warrant Share”) at a price of US$0.10
per Warrant Share for a period of twelve (12) months following closing; or at a
price of US$0.20 per warrant share for a period of thirty-six (36) months
following closing.

ITEM 8: RISK FACTORS 

Investment in the Units should only be made after consulting
with independent and qualified sources of investment and tax advice. Investment
in the Units at this time is highly speculative due to the stage of the Issuer’s
development and requirement to raise additional financing to carry out the
long-term business objectives of the Issuer. Any investment in the Issuer at
this stage involves a high degree of risk. 

Reference is made to Item 1A. (Risk Factors) in the Issuer’s
Form 10-K/A (Annual Information Form), filed on SEDAR on March 14, 2012, for a
discussion of the risks and uncertainties that the Issuer believes to be
material. 

Additional risk factors relating to the Offering include: 

	1. 	
      Purchasers of the Units will not have the benefit of a
      review of this Offering Memorandum by any regulatory authority.

	 	 
	2. 	
      Purchasers of Units have no individual legal
      representation in connection with the Offering. Accordingly, purchasers
      should consult with their own counsel prior to purchasing Units.

	 	 
	3. 	
      Purchasers of the Units offered hereby will experience an
      immediate and substantial dilution in the net tangible book value of the
      Units from the Offering Price of this
Offering.

	
4. 		
Purchasers of the Units must be aware of the long-term nature of their investment and be able to bear the economic risks of their investment. The right of any purchaser to sell, transfer, pledge or otherwise dispose of the Shares
or the Warrant Shares will be limited by applicable legislation, including a number of resale restrictions, including a restriction on trading. Until the restriction on trading expires, you will not be able to trade the Securities unless you comply
with an exemption from prospectus and registration requirements under applicable securities legislation. The restriction on trading may be indefinite depending on the holder's jurisdiction of residence. Consequently, a holder of the Units may not be
able to readily liquidate his/her/its investment. Prospective purchasers should be able to afford the entire loss of their investment in the Issuer.

	
	 	 
	
5. 		
Publicly quoted securities are subject to a relatively high degree of price volatility. It may be anticipated that the quoted market for the Shares of the Issuer will be subject to market trends generally, notwithstanding any
potential success of the Issuer in creating revenue.

	
	 	 
	
6. 		
Shareholders of the Issuer may be unable to sell significant quantities of Shares into the public trading markets without a significant reduction in the price of their Shares, if at all. There can be no assurance that the Issuer
will continue to meet the listing requirements of the Canadian National Stock Exchange, the Over-The-Counter Bulletin Board or achieve listing on any other public listing exchange.

	

ITEM 9: REPORTING OBLIGATIONS 

Other than notices of annual and special meetings of the shareholders, and related information circulars, form of proxies, and financial statement request forms, the Issuer does not provide documents to its shareholders on an annual or ongoing
basis. 

The Issuer is a reporting issuer (or equivalent) in British Columbia, Ontario and in the United States. You can obtain corporate and securities information about the Issuer from the SEDAR website at www.sedar.com, the SEDI website at www.sedi.ca,
and from the U.S. Securities and Exchange Commission's EDGAR system at www.sec.gov. The Issuer cannot guarantee the accuracy of this information. Additionally, you can obtain quotations for the Issuer's shares of common stock, under the
symbol TOP, from the Canadian National Stock Exchange and/or under the symbol ENRT, from OTC Markets at www.otcmarkets.com.

ITEM 10: RESALE RESTRICTIONS 

Canadian Resale Restrictions 

These securities will be subject to a number of resale restrictions, including a restriction on trading. Until the restriction on trading expires, you will not be able to trade the securities unless you comply with an exemption from the prospectus
and registration requirements under securities legislation. 

Unless permitted under securities legislation, you cannot trade the securities before the date that is 4 months and a day after the distribution date. 

United States Resale Restrictions 

The Shares and Warrants to be issued to security holders will not be registered under the U.S. Securities Act or applicable state securities laws. Such securities will be issued in reliance upon the exemption from registration provided by Regulation
S of the U.S. Securities Act and pursuant to exemptions from applicable state securities laws.

Likewise, the Warrant Shares will not be registered under the U.S. Securities Act or applicable states securities laws, and accordingly may not be issued to U.S. Persons or persons in the United States, unless an exemption from registration under
the U.S. Securities Act and applicable states securities laws is available.

In addition, the Shares, the Warrants and the Warrant Shares issuable upon the exercise of the Warrants will be "restricted securities" within the meaning of Rule 144 under the U.S. Securities Act, certificates representing such securities will bear
a legend to that effect, and such securities may be resold only pursuant to an exemption from the registration requirements of the U.S. Securities Act and all applicable state securities laws. Subject to certain limitations, such securities may be
resold outside the United States without registration under the U.S. Securities Act pursuant to Regulation S under the U.S. Securities Act. 

Moreover, the Warrants may be exercised only pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. As a result, the Warrants may only be exercised by a holder who represents
that, at the time of exercise, the holder is not then located in the United States, is not a "U.S. person", as defined in Rule 902 of Regulation S under the U.S. Securities Act (a "U.S. Person"), and is not exercising the Warrants for the account or
benefit of a U.S. Person or a person in the United States, unless the holder provides a legal opinion or other evidence reasonably satisfactory to the Company to the effect that the exercise of the Warrants does not require registration under the
U.S. Securities Act or applicable state securities laws, or any other such documents that the Company may deem necessary. 

The foregoing discussion is only a general overview of certain requirements of United States securities laws applicable to the securities received upon completion of the Private Placement. All holders of such securities are urged to consult
with counsel to ensure that the resale of their securities complies with applicable securities legislation. 

 ITEM 11: PURCHASERS' RIGHTS 

If you purchase these securities you will have certain rights, some of which are described below. For information about your rights you should consult a lawyer. 

Two-Day Cancellation Right 

You can cancel your agreement to purchase these securities. To do so, you must send a notice to the Issuer by midnight on the 2nd business day after you sign the subscription agreement to buy the securities. 

Statutory Rights of Action in the Event of a Misrepresentation 

If there is a misrepresentation in this Offering Memorandum, you have a statutory right to sue: 

	
(a) 		
the Issuer to cancel your agreement to buy these securities, or

	
	 	 
	
(b) 		
for damages against the Issuer, every person who was a director of the Issuer at the date of this Offering Memorandum, and every other person who signed this Offering Memorandum.

	

This statutory right to sue is available to you whether or not you relied on the misrepresentation. However, there are various defences available to the persons or companies that you have a right to sue. In particular, they have a defence if you
knew of the misrepresentation when you purchased the securities.

If you intend to rely on the rights described in (a) or (b) above, you must do so within strict time limitations. You must commence your action to cancel the agreement within180 days after you signed the subscription agreement to purchase the
securities.  You must commence your action for damages within the earlier of 180 days after learning of the misrepresentation and three years after you signed the subscription agreement to purchase the securities. 

ITEM 12: DATE AND CERTIFICATE 

Dated this 16th day of July, 2012. 

This Offering Memorandum does not contain a
misrepresentation. 

ENERTOPIA CORP. 

 

	 	 	 
	Robert McAllister 	 	Bal Bhullar 
	President 	 	Chief Financial Officer 
	  		
	 	 	 
	ON BEHALF OF THE BOARD OF DIRECTORS 	 	  
		 	
	  	 	  
	  	 	  
	Chris Bunka 	 	  Donald Findlay 
	Director, Promoter 		Director 
	 	 	 
	 	 	 
	 	 	 
	Greg Dawson 	 	John Thomas 
	Director 	 	Director 

Form 45-106F4 

 

You have 2 business days to cancel your purchase. To do
so, send a notice to Enertopia Corporation stating that you want to cancel your
purchase. You must send the notice before midnight on the 2nd
business day after you sign the agreement to purchase the securities. You can
send the notice by fax or email or deliver it in person to Enertopia Corporation
at its business address. Keep a copy of the notice for your records. 

Issuer Name and Address: 

Enertopia Corporation. 
Suite 950 1150 West Pender

Vancouver, British Columbia 
Canada, V6E 4A4 
Phone: 604-602-1675

Fax: 604-685-1602 

  E-mail: bbspa@hotmail.com 

You are buying Exempt Market Securities 

They are called exempt market securities because two
parts of securities law do not apply to them. If an issuer wants to sell
exempt market securities to you: 

	
  the issuer does not have to give you a prospectus (a document that
  describes the investment in detail and gives you some legal protections), and
  

  
	
  the securities do not have to be sold by an investment dealer registered
  with a securities regulatory authority or regulator. 

There are restrictions on your ability to resell exempt
market securities. Exempt market securities are more risky than other
securities. 

You will receive an offering memorandum. Read the
offering memorandum carefully because it has important information about the
issuer and its securities. Keep the offering memorandum because you have rights
based on it. Talk to a lawyer for details about these rights. 

For more information on the exempt market, call your local
securities regulatory authority or regulator.

British Columbia Securities Commission
P.O. Box
10142, Pacific Centre 
701 West Georgia Street 
Vancouver, British
Columbia V7Y 1L2
Telephone: (604) 899-6500
Toll free in British Columbia
and Alberta 1-800-373-6393 
Facsimile: (604) 899-6506 

Alberta Securities Commission 
4th Floor, 300 – 5th
Avenue SW 
Calgary, Alberta T2P 3C4 
Telephone: (403) 297-6454

Facsimile: (403) 297-6156

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