Document:

Enertopia  Corp. Exhibit 10.1 - Filed by newsfilecorp.com

LOAN AGREEMENT 

THIS AGREEMENT made the 23rd day of August, 2010

AMONG: 

CAB Financial Services Ltd.

5774 Deadpine Drive 
Kelowna, BC V1P 1A3 
Fax 250 765 4408 

(herein called the “Lender”) 

OF THE FIRST PART AND: 

ENERTOPIA CORP., of 
950 –
1130 West Pender Street, 
Vancouver BC V6E 4A4, 
Fax 604 602 1625 

(herein called the “Company”) 

OF THE SECOND PART 

WHEREAS: 

A. 

This Loan
Agreement (the “Loan Agreement”) is entered into this date by and between the
Lender and the Company for up to one year. 

B. 

The purpose of
this Loan Agreement is to set out terms of the arrangement by which Lender
agrees to make a loan of US$50,000 (“Loan”) available to the Company.

1. 

DEFINITIONS 

1.1

“Indebtedness”
means all loans and advances made or which may be made by the Lender to the
Company and Interest thereon and all costs, charges and expenses of or incurred
by the Lender in connection with any Securities and in connection with any
property covered by or comprised in the Securities, whether in protecting,
preserving, realizing or collecting any Securities or property aforesaid or
attempting so to do or otherwise and all other obligations and liabilities,
present or future, direct or indirect, absolute or contingent, mature or not, of
the Company to the Lender arising under or by virtue of this Agreement, the
Securities or otherwise howsoever.

1.2 

“Interest” will be at 12%. 

1.3 

“Principal” means
the aggregate principal amount of money loaned to the Company by the Lender of
US$50,000 dollars. 

- 2 - 

1.4 

“Securities”
means the securities referred to in Article 3 or any renewal thereof or
substitution therefore. 

2. 

TERMS OF THE LOAN 

2.1 

The Lender will
lend to the Company, and the Company will borrow from the Lender by way of one
advance to be evidenced by a promissory note in the form attached hereto as
Schedule “A”, the Principal sum of fifty thousand dollars (US) subject to the
terms and conditions of this Agreement and the Securities. 

2.2 

For value
received, Company promises to pay to Lender on the first annual anniversary of
the date of this Loan Agreement (the “Maturity Date”) the amount of the
Principal which has been advanced hereunder and remains outstanding from the
date of funding.

2.3 

Notwithstanding
the above the Company may repay at any time any or all of the Principal then
outstanding and accrued and unpaid Interest on giving 20 days notice to the
Lender. In this event the Company may elect to repay the Principal at any time
in advance of the Maturity Date. 

3. 

SECURITY FOR THE LOAN 

3.1 

The loan shall be
unsecured.

4. 

AFFIRMATIVE COVENANTS OF THE
COMPANY 

4.1 

At all times
while any Principal or Interest on the Loan is outstanding, the Company will: 

	 	(a) 	
      maintain the properties and assets being the subject of
      the Securities in good repair;

	 	 	 
	 	(b) 	
      keep true records and books of account in which full,
      true and correct entries will be made in accordance with generally
      accepted accounting principles consistently applied throughout the period
      involved, and maintain adequate accounts and reserves for all taxes,
      including taxes on income and profits, all depreciation and amortization
      of his properties and assets and all such other reserves for contingencies
      as would normally be required in accordance with generally accepted
      accounting principles;

	 	 	 
	 	(c) 	
      permit any representative of the Lender to visit and
      inspect the properties charged by the Securities and to examine the
      Company’s books, records, leases and other documents relating thereto and
      to enquire from time to time as to particulars of any of the foregoing,
      all at such times and so often as may reasonably be requested;
  and

	 	 	 
	 	(d) 	
      forthwith upon request of the Lender execute and deliver
      to the Lender all such further and other mortgages, deeds, documents,
      matters, acts, things and insurances in law (collectively, the “Ancillary
      Items”) for the purpose of record or otherwise which the Lender may reasonably require to perfect
the intentions and provisions of this Agreement; provided that the Company will
not be obligated to execute and deliver any Ancillary Items where the execution
and delivery of such Ancillary Items would breach the terms and conditions of
any lease of real property existing on the date hereof to which the Company is a
party. 

- 3 - 

5. 

DEFAULT 

5.1

 Default by the Company. The occurrence of one or
more of the following events shall constitute an “event of default”, namely:

	 	(a) 	
      if the Company fails to make payment of the Indebtedness
      or any part thereof as and when the same comes due and payable;

	 	 	 
	 	(b) 	
      if any representation or warranty contained herein or
      otherwise made in writing to the Lender in connection with any of the
      transactions contemplated by this Agreement is found to be false or
      misleading or incorrect in any material respect on the date which it was
      made;

	 	 	 
	 	(c) 	
      if the Company defaults in the performance of or
      compliance with any term, covenant or agreement contained in this
      Agreement or in any of the Securities and the default is not remedied
      within twenty (20) days after notice thereof has been given to the
      Company;

	 	 	 
	 	(d) 	
      the entry of a decree or order for relief by a court
      having jurisdiction in respect of the Company in an involuntary case under
      the federal bankruptcy laws, as now or hereafter constituted, or any other
      applicable federal or state bankruptcy, insolvency or other similar
      laws;

	 	 	 
	 	(e) 	
      the commencement by the Company of a voluntary case under
      the federal bankruptcy laws, as now or hereafter constituted, or any other
      applicable federal or state bankruptcy, insolvency or other similar
      laws;

	 	 	 
	 	(f) 	
      the appointment of a receiver, liquidator, assignee,
      custodian, trustee, sequestrator (or similar official) of the Company or
      for any material part of the Company’s property;

	 	 	 
	 	(g) 	
      the consent by the Company to the appointment of, or
      taking possession by, a receiver, liquidator, assignee, custodian,
      trustee, sequestrator (or similar official) of the Company or for any
      material part of the Company’s property;

	 	 	 
	 	(h) 	
      the issuance of an order for the winding up or
      liquidation of the affairs of the Company and the continuance of such
      decree, order or appointment unstayed and in effect for a period of sixty
      (60) consecutive days;

	 	 	 
	 	(i) 	
      the making by the Company of an assignment for the
      benefit of its creditors;

- 4 - 

	 	(j) 	
      the institution by or against the Company of any formal
      or informal proceeding for the dissolution or liquidation of, settlement
      of claims against or winding-up of the affairs of the Company;

	 	 	 
	 	(k) 	
      the threat by the Company of ceasing to carry on business
      or the Company ceasing to carry on business;

	 	 	 
	 	(l) 	
      the entry of a decree or order or an effective resolution
      passed for winding-up the Company;

	 	 	 
	 	(m) 	
      the entry by the Company into any reconstruction,
      reorganization, amalgamation, merger or other similar arrangement with any
      other person; or

	 	 	 
	 	(n) 	
      if any encumbrancer takes possession of the properties
      being the subject of the Securities or being financed with the Loan,
      unless the Company in good faith dispute the encumbrancer’s claim and
      non-payment does not jeopardize the title of the Company to any such
      property or any way impairs any of the Securities;
or

5.2 

Upon the
occurrence of any one of these events of default, the entire amount of the
Principal and Interest then outstanding shall immediately become due and
payable. 

5.3 

Lender’s delay or
failure to insist upon the strict performance of the Company’s obligations under
this Loan Agreement or the Securities shall not be construed as a waiver of
Lender’s right to later require strict performance nor as a waiver of any of
Lender’s legal and equitable remedies. 

6. 

PAYMENT ON MATURITY 

6.1 

On the Maturity
Date, the Company will deliver the Principal then outstanding and any earned
Interest due Lender by wire transfer to Lender’s nominated bank account or in
cash or certified cheque delivered to the address of Lender. 

7. 

NOTICES 

7.1 

Any notice,
request, demand, claim, instruction, or other document to be given to any party
pursuant to this Loan Agreement shall be in writing delivered personally or sent
by mail, registered or certified, postage fully prepaid, as follows: 

	 	(a) 	
      If to, Lender to the address set forth on the first page
      of this Loan Agreement.

	 	 	 
	 	(b) 	
      If to Company, to the addresses set forth on the first
      page of this Loan Agreement, with a copy to:

	 	 	 
	 		
      Madonald Tuskey, Corporate and Securities
      Lawyers

	 	 	
      1210 – 777 Hornby Street

	 		Vancouver, British Columbia V6Z 1S4 
	 	 	Attention: William L. Macdonald 
	 		
      Fax: 604 681 4760

- 5 - 

7.2

Any party may
give any notice, request, demand, claim, instruction, or other document under
this section using any other means (including expedited courier, messenger
service, telecopy, facsimile, telex, ordinary mail, or electronic mail), but no
such notice, request, demand, claim, instruction, or other document shall be
deemed to have been duly given unless and until it actually is received by the
individual for whom it is intended. Any party may change its address for
purposes of this section by giving notice of the change of address to the other
party in the manner provided in this section.

8. 

TERMINATION 

8.1 

This Loan
Agreement may, by written notice, be terminated as follows: 

	 	(a) 	
      by either the Company or the Lender if a material breach
      of any provision of this Loan Agreement has been committed by the other
      party and such breach has not been waived; or

	 	 	 
	 	(b) 	
      by mutual written consent of the Company and
    Lender.

8.2 

Each Party’s
right of termination is in addition to any other rights it may have under this
Loan Agreement or otherwise, and the exercise of a right of termination will not
be an election of remedies; provided, however, that if this Loan Agreement is
terminated by a party because of a breach of the Loan Agreement by the other
party or because one or more of the conditions to the terminating party’s
obligations under this Loan Agreement is not satisfied as a result of the other
party’s failure to comply with its obligations under this Loan Agreement, the
terminating party’s right to pursue all legal remedies will survive such
termination unimpaired. For greater certainty, termination of this Loan
Agreement does not release the Company from its obligations hereunder in respect
of any Principal then outstanding. 

9. 

INDEMNIFICATION 

9.1 

All
representations, warranties, covenants, and obligations in this Loan Agreement,
and any other certificate or document delivered pursuant to this Loan Agreement
will survive the Loan Agreement. The right to indemnification, payment of
damages or other remedy based on such representations, warranties, covenants,
and obligations will not be affected by any investigation conducted with respect
to, or any knowledge acquired (or capable of being acquired) at any time,
whether before or after the execution and delivery of this Loan Agreement, with
respect to the accuracy or inaccuracy of or compliance with, any such
representation, warranty, covenant, or obligation. The waiver of any condition
based on the accuracy of any representation or warranty, or on the performance
of or compliance with any covenant or obligation, will not affect the right to
indemnification, payment of damages, or other remedy based on such
representations, warranties, covenants, and obligations. 

9.2 

The Company and the Lender mutually agree to indemnify and
hold each other harmless along with their respective representatives,
stockholders, controlling persons, and affiliates (collectively, the
“Indemnified Persons”) for, and will pay to the Indemnified Persons the amount
of, any loss, liability, claim, damage (including incidental and consequential
damages), expense (including costs of investigation and defense and reasonable
attorneys’ fees) or diminution of value, whether or not involving a third-party
claim, arising, directly or indirectly, from or in connection with any breach of any
representation, warrant, covenant or obligation made by the other Party in this
Loan Agreement.

- 6 - 

10. 

GENERAL PROVISIONS 

10.1 

The Parties agree
to furnish upon request to each other such further information, and to execute
and deliver to each other such other documents, and to do such other acts and
things, all as the other party may reasonably request for the purpose of
carrying out the intent of this Loan Agreement. 

10.2 

The rights and
remedies of the parties to this Loan Agreement are cumulative and not
alternative. Neither the failure nor any delay by any party in exercising any
right, power, or privilege under this Loan Agreement or the documents referred
to in this Loan Agreement will operate as a waiver of such right, power, or
privilege, and no single or partial exercise of any such right, power, or
privilege will preclude any other or further exercise of such right, power, or
privilege or the exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising out of
this Loan Agreement or the documents referred to in this Loan Agreement can be
discharged by one party, in whole or in part, by a waiver or renunciation of the
claim or right unless in writing signed by the other party; (b) no waiver that
may be given by a party will be applicable except in the specific instance for
which it is given; and (c) no notice to or demand on one party will be deemed to
be a waiver of any obligation of such party or of the right of the party giving
such notice or demand to take further action without notice or demand as
provided in this Loan Agreement or the documents referred to in this Loan
Agreement. 

10.3 

This Loan
Agreement supersedes all prior agreements between the parties with respect to
this loan and constitutes (along with the documents referred to in this Loan
Agreement) a complete and exclusive statement of the terms of the agreement
between the parties with respect to its subject matter. This Loan Agreement may
not be amended except by a written agreement executed by the party to be charged
with the amendment. 

10.4 

Neither party may
assign any of its rights under this Loan Agreement without the prior consent of
the other parties. This Loan Agreement will apply to, be binding in all respects
upon, and inure to the benefit of the successors and permitted assigns of the
parties. Nothing expressed or referred to in this Loan Agreement will be
construed to give any Person other than the parties to this Loan Agreement any
legal or equitable right, remedy, or claim under or with respect to this Loan
Agreement or any provision of this Loan Agreement. This Loan Agreement and all
of its provisions and conditions are for the sole and exclusive benefit of the
parties to this Loan Agreement and their successors and assigns. 

10.5 

If any provision
of this Loan Agreement is held invalid or unenforceable by any court of
competent jurisdiction, the other provisions of this Loan Agreement will remain
in full force and effect. Any provision of this Loan Agreement held invalid or
unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid or unenforceable. 

10.6 

This Loan
Agreement will be governed by the laws of the Province of British Columbia. 

- 7 - 

10.7 

This Loan
Agreement may be signed in as many counterparts is as necessary and all
signatures so executed shall constitute one Agreement, binding on all Parties as
if each was a signatory on the original. 

11. 

SIGNATURES 

11.1 

IN WITNESS
WHEREOF, the parties have executed and delivered this Loan Agreement as of the
date first written above. 

	CAB Financial Services Ltd. 
	 
	Per: 	___________________________
	 	Chris Bunka Authorized Signatory 
	 	  
	ENERTOPIA CORP. 
	 	 
	Per: 	___________________________
	 	Robert McAllister, President and Authorized Signatory
  

SCHEDULE “A” 

PROMISSORY NOTE 

	US$50,000 	August 23, 2010 

          FOR
VALUE RECEIVED, the undersigned (the “Borrower”) promise to pay to CAB Financial
Services Ltd. of 5774 Deadpine Drive, Kelowna B.C. V1P 1A3 Canada, (the
“Lender”) the principal sum of fifty thousand US dollars (US$50,000) in lawful
currency of the US (the “Principal Sum”), as herein provided.

          The
Principal Sum or such amount as shall remain outstanding from time to time shall
bear 12% interest thereon, both before and after each of maturity, default and
judgment commencing on the day the Principal Sum is advanced by the Lender to
the Borrower.

          The
Principal Sum aforesaid will become due and payable on the 23rd day
of August, 2011, or earlier if by mutual consent. 

         
Extension of time of payment of all or any part of the amount owing hereunder at
any time or times and failure of the Lender to enforce any of its rights or
remedies hereunder shall not release the Borrower from its obligations hereunder
or constitute a waiver of the rights of the Lender to enforce any rights and
remedies therein. 

          On
default in payment of any sum due hereunder for the Principal Sum or Interest or
after 15 days’ notice of Default to the Borrower upon the occurrence of an Event
of Default as defined pursuant to the Loan Agreement, entered into between the
Borrower and the Lender and dated for reference August 23, 2010, or any
amendments thereto, the unpaid balance of the Principal Sum and all accrued
Interest thereon shall at the option of the Lender forthwith become due and
payable. 

          The
undersigned, when not in default hereunder, will have the privilege of prepaying
in whole or in part the Principal Sum, upon 20 days’ notice to the Lender. 

         
Presentment, protest, notice of protest and notice of dishonour are hereby
waived. 

ENERTOPIA CORP. 

	Per: 	_______________________________
	 	Robert McAllister, Authorized Signatoryf8k082010ex10iii_oteegee.htm

Exhibit 10.3

 

 

	

	
Entrepreneurs Institute 

Suite 802, Tower 2, Lippo Centre, 89 Queensway, Hong Kong 

Tel: +852 2861 3833       Fax: +852 2527 0662

E-mail: ei@ei-online.net                  Website: www.ei-online.net

Building Tomorrow's Business Leaders Today

 

 

Our Ref : 3797-EI000231

 

Oteegee Innovations, Inc.

Attn: Mr. Jordan Starkman,

	By e-mail    	 Friday, 20 August 2010,

 

 

Dear Sirs,

 

Please consider this letter formal notice of termination of the Letter of Intent (L01) of March 10, 2010 signed by your Mr. Jordan Starkman on your behalf under your former name of Pay By the Day Holdings Inc. (PBDH) and exchanged between our companies and six other companies each of which is receiving a copy of this notice as required by the LOI.

 

The LOI provided that PBDH, now named Oteegee Innovations Inc. (OTGI) would raise $250,000 in preliminary funding and $1M to $3.5M within the 120 day due diligence period. Despite extensions of time and efforts to allow flexibility in achieving the intended funding, it is apparent that Oteegee Innovations Inc. will not be successful in raising the necessary funds to finance the enterprise described in the LOT within the foreseeable future.

 

We, therefore, terminate the agreement on the grounds of your default.

 

Please be reminded that the Confidentiality terms set out on page seven of the LOI remain in effect after termination, including the requirement that all signatories approve any public announcement concerning the investment contemplated in the LOI.

 

All of our rights are hereby reserved. 

 

Yours faithfully,

 

/s/ Liza Chan

Liza Chan,

Director,

Entrepreneurs International Ltd.

 

c.c. Oteegee International Holdings Ltd., Oteegee IPR Ltd., Grail Semiconductor, Anew Organics LLC, Oteegee USA Holdings LLC, Distributive Operating Platform Co.,

 

 

A Division of Entrepreneurs International Ltd.

Hong Kong Company No. 949534

 

  

  

  

 

	

	
teegee International Holdings Ltd.

 

	
Our Ref: 1502-E1000232

 

Oteegee Innovations, Inc. 

Attn: Mr. Jordan Starkman, 

By e-mail

	
Friday, 20 August 2010,

 

Dears Sirs

 

Re:   OTGI International Share Exchange Agreement

 

Please consider this letter formal notice of termination of the OTGI International Share Exchange Agreement of July 6, 2010 made between us and signed by your Mr. Jordan Starkman on your behalf.

 

That agreement provides that OTGI would raise First Phase Funding of $1,500,000 within thirty days [5(a); 6(ii)(C)]. That agreement further provides that Oteegee International may terminate the agreement forthwith upon notice in writing if OTGI does not raise US $1,500,000 within thirty days of the agreement [17(b)(ii)]. OTGI has not raised the funds required and it is apparent that it will not be successful in raising the funds in the foreseeable future.

 

The agreement further provides that, upon termination for whatsoever reason, the names and marks "OTG" and "Oteegee" and the Business Model shall be the property of Oteegee IPR Ltd. and that OTGI shall forthwith upon termination:

 

(i) cease to use as its corporate or business name or any part thereof the combination of letters "OTG" or the word "Oteegee";

 

(ii) change its ticker symbol to something that does not use the combination of letters "OTG".

 

Please inform us immediately (together with a copy to Mr. Robert Stern) of your plans to comply with the above intellectual property obligations so that we can cooperate in the quick resolution of the termination of our agreement.

 

Please be advised that the OTGI website contains a copyright mark indicating that the copyright to the content is held by OTGI. The copyright is, in fact, part of the Oteegee intellectual property that belongs to Oteegee IPR Ltd. All rights are hereby reserved.

 

Yours faithfully,

 

/s/ Liza Chan

	
Liza Chan

Oteegee International Holdings Limited

	
c.c. Oteegee IPR Ltd.

 

 

	Room 805, Tower 2,	 Tel: +852 2151 8181
	Lippo Centre	 Fax: +852 2151 8183
	89 Queensway,	  E-mail: info@oteegee.com
	Hong Kong	 Website: www.oteegee.com

 

  

  

  

 

	

	
teegee International Holdings Ltd.

 

	
Our Ref: 6097-E1000233

 

Oteegee Innovations, Inc. 

Attn: Mr. Jordan Starkman, 

By e-mail

	
Friday, 20 August 2010,

 

Dears Sirs

Re: Oteegee Promoters Agreement

 

We refer to our letter to you of even date by which we terminated the Share Exchange Agreement made between us on July 6, 12010.

 

Termination of that agreement makes performance of the Promoters Agreement made between us also on July 6, 2010 impossible and places you in breach of your warranty of capacity contained in the Promoters Agreement.

 

Please, therefore, consider this letter formal notice of termination of the Promoters Agreement with immediate effect.

 

This letter is countersigned by Oteegee IPR Ltd by way of confirmation of such termination 

 

Yours faithfully,

/s/ Liza Chan

Liza Chan

Oteegee International Holdings Limited

 

c.c. Oteegee IPR Ltd.

 

	
 

  We concur with the above notice of termination.

 
 

  /s/ Kathleen Mandel

  Kathleen Mandel

 
  Director, Oteegee IPR Ltd.

 

	 

 

 

	Room 805, Tower 2,	 Tel: +852 2151 8181
	Lippo Centre	 Fax: +852 2151 8183
	89 Queensway,	  E-mail: info@oteegee.com
	Hong Kong	 Website: www.oteegee.com

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