Document:

exhibit10_1.htm

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

This EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”), is effective as of January 1, 2014 (the Effective Date”), by and between POZEN Inc. (the “Company”), with offices located at Suite 400, 1414 Raleigh Road, Chapel Hill, North Carolina 27517, and Dennis L. McNamara (“Executive”), whose address is 111 Lone Pine Road, Chapel Hill, North Carolina 27514.

WITNESSETH:

WHEREAS, the Company is engaged in certain pharmaceutical research, development and marketing activities; and

WHEREAS, Executive has been employed by the Company in the position of Vice President, Business Development; and

WHEREAS, the Company now wishes to employ Executive in the position of Senior Vice President, Chief Business Officer, and Executive desires to remain employed with the Company in such new position.

NOW, THEREFORE, in consideration of the foregoing and the provisions and mutual promises herein contained and other good and valuable consideration, the parties hereby agree as follows:

1. EMPLOYMENT.  The Company hereby agrees to continue to employ Executive in the new position of Senior Vice President, Chief Business Officer, and Executive hereby agrees to remain employed as Senior Vice President, Chief Business Officer of the Company, with such duties and responsibilities as are normally related to such position in accordance with the standards of the industry and as specified in Exhibit A, attached hereto and incorporated herein by reference, and such additional duties as may be assigned to Executive from time to time by the President or the Board of Directors of the Company.

2. TERM.  Executive’s employment shall be for a term of one (1) year from the date of execution of this Agreement (the “Initial Term”), and thereafter shall be automatically renewed with additional one (1) year terms to follow consecutively, subject to the termination and severance provisions herein later provided, unless amended or modified by mutual agreement of the parties.  As used herein, “Term” shall include the Initial Term and any renewals thereof in accordance with this Agreement.

3. EXCLUSIVE SERVICE.  Executive agrees to devote Executive’s full time and attention to the performance of Executive’s duties and responsibilities on behalf of the Company.  Executive shall comply with all policies and regulations of the Company and all applicable government laws, rules and regulations that are now or hereafter in effect.

4. COMPENSATION.  During the Term of this Agreement, Executive’s compensation shall be determined and paid as follows:

  

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(a) Base Salary.  Executive shall receive an annual base salary of Two Hundred and Sixty Thousand Dollars ($260,000) payable in accordance with the Company’s standard payroll practices and subject to applicable withholdings.  The Compensation Committee of the Board of Directors of the Company (the “Committee”) shall determine whether Executive shall receive an annual increase in salary, if any, by March 31 of each calendar year during the Term.

(b) Bonus.  Executive shall be eligible to receive an annual cash incentive bonus of up to forty percent (40%) of Executive’s annual base salary as may be set by the Company by March 31 of each year.  The determination of the actual bonus earned, if any, shall be at the sole discretion of the Company and shall be based upon the Company’s assessment of Executive’s performance and the achievement of certain objectives which shall be set by the Company from time to time. Executive’s performance shall be evaluated by the Company on an annual basis, and the Company shall adjust Executive’s compensation in its sole discretion.  Nothing in this section shall be construed as guaranteeing Executive a bonus in any amount.  If an annual bonus is awarded, it shall be paid in the year following the year in which such bonus was earned, on or before March 15 of such year.

(c) Stock Options.  Subject to the approval of the Compensation Committee or the Board of Directors, Executive shall also be eligible to receive an annual stock option or other incentive award, with the amount and form of any such award being determined in the sole discretion of the Company.

(d) Benefits.  Executive shall be eligible to participate in the Company’s standard employee benefit programs made available to employees of the Company from time to time, subject to appropriate premium contributions, benefit elections, etc. and provided that Executive meets the eligibility requirements thereof.  In addition, Executive shall continue to be entitled to five (5) weeks of paid vacation per year.

(e) Business Expenses.  The Company shall reimburse Executive for all reasonable expenses incurred in the furtherance of the Company’s business and interests, including travel and entertainment, provided that Executive complies with the expense reporting policies and procedures of the Company.

(f) Adequate Office Space.  The Company shall provide to Executive adequate office space, facilities, and administrative support appropriate to Executive’s position.

5. TERMINATION.  This Agreement shall or may be terminated, as the case may be, upon the terms and conditions hereinafter provided.

(a) Voluntary Termination.  This Agreement shall be considered voluntarily terminated by the parties if either party provides written notice of such party’s intent not to renew this Agreement, provided that such party shall provide at least ninety (90) days’ written notice to the other party prior to the last day of the Initial Term or any renewal term.

  

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(b) Involuntary Termination. The Company may terminate this Agreement upon written notice to Executive (or Executive’s representative) in any of the following events:

(i)           The death of Executive;

(ii) Executive becomes permanently disabled (as defined in Section 5(g) below); or

(iii) For Cause, immediately upon written notice to Executive.  “Cause” shall be determined by the Board of Directors and shall mean:  (A) breach by Executive of the terms of this Agreement; (B) breach of the Nondisclosure, Inventions and Non-Competition Agreement (described in Section 6 below); (C) material failure by Executive to comply with the policies or directives of the Company or the Board of Directors; (D) any illegal or dishonest action that is materially detrimental to the Company; or (E) Executive’s failure to faithfully carry out the duties of Executive’s position, provided that Executive shall be given a period of thirty (30) days after receipt of written notice of such failure during which to correct such failure; and (F) Executive’s violation of the Company’s policies regarding harassment or unlawful discrimination.

(c)           Obligations upon Certain Terminations.  Upon voluntary termination of this Agreement, or termination of Executive’s employment by the Company for Cause (as defined above) or upon Executive’s death or disability, or termination by Executive for other than Good Reason (as defined below), the Company shall have no further obligations hereunder other than the payment of all compensation and other benefits payable to Executive through the date of such termination. Such amounts shall be paid on the Company’s next regularly scheduled payroll date unless any such amount is not then calculable, in which case payment of such amount shall be made on the first regularly scheduled payroll date after the amount is calculable but no later than March 15 of the year following the year in which the Executive’s employment terminated.

(d)           Severance.

(i)           In the event of termination of Executive’s employment (A) by the Company for reasons other than Cause or Executive’s death or disability, or (B) by Executive for Good Reason, and provided Executive executes and does not revoke a release and settlement agreement (the “Release”) in a form acceptable to the Company, Executive shall receive a severance benefit, subject to any applicable taxes and withholdings, in an amount equal to one (1) year’s base salary (the “Salary Benefit”) plus the average annual bonus awarded Executive over the previous two (2) years (the “Bonus”) and, together with the Salary Benefit, the “Severance Benefit”). Subject to Section 5(d)(ii) below, the Company shall pay the Salary Benefit, in monthly installments, on the fifth business day of each month commencing with the second month following the month in which Executive’s termination of employment occurred. The Company shall pay the Bonus in a lump sum payment within ninety (90) days of the date of termination of Executive’s employment (the “Termination Date”), but in no event later than March 15 of the year following the year in which such termination of employment occurred, or in the event of termination pursuant to Section 5(e)(iv), no later than March 15 of the year

  

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following the year in which the Change of Control occurred.  Executive shall also continue to be entitled to receive all Company nontaxable health and other nontaxable employee benefits to which Executive was entitled as of the Termination Date, subject to the terms of all applicable benefit plans and to the extent such benefits can be provided to non-employees (or to the extent such benefits cannot be provided to non-employees, then the amount the Company was paying for those benefits immediately prior to the Termination Date), at the same average level and on the same terms and conditions which applied immediately prior to the Termination Date, for the shorter of (i) one year following the date of such Termination Date or (ii) until Executive obtains comparable coverage from another employer (the “Continuing Benefits”).

(ii)           Notwithstanding the foregoing, if Executive is on the termination date a “specified employee” (as defined in Section 409A of the Internal Revenue Code, as amended (the “Code”) and the regulations promulgated under such Section 409A (“Code Section 409A”) and as determined in accordance with the permissible method then in use by the Company, or, if none, in accordance with the applicable default provisions of Code Section 409A, relating to “specified employees”), then if and to the extent required in order to avoid the imposition on Executive of any excise tax under Code Section 409A, the payment of any Severance Benefit, Continuing Benefits or other payments under this Section 5 shall not commence until, and shall be made on, the first business day after the date that is six (6) months following the Termination Date, and in such event the initial payment shall include a catch-up amount covering amounts that would otherwise have been paid during the six-month period following the Termination Date.

(e)           Good Reason.  For purposes of this Agreement, “Good Reason” shall mean, the occurrence, without the consent of Executive, of any of the following events, unless, in the case of (i), (ii) and (iii) below, such event is corrected within thirty (30) days after written notification by Executive to the Company of the same: (i) the office from which Executive performs Executive’s principal duties is moved more than fifty (50) miles from the current location of the Company’s offices in Chapel Hill, North Carolina; (ii) Executive’s duties and responsibilities are substantially reduced or diminished; (iii) the Company materially breaches its obligations under this Agreement; or (iv) a Change of Control (as defined below) occurs and Executive notifies the Company in writing within sixty (60) days of the consummation of such Change of Control that Executive intends to terminate Executive’s employment as a result of the Change of Control, in which event such termination shall be effective not less than sixty (60) days after the date of such written notice.

 

(f)           Disability.  For purposes of this Agreement, Executive shall be considered permanently disabled when a qualified medical doctor mutually acceptable to the Company and Executive or Executive’s personal representative shall have certified in writing that:  (i) Executive is unable because of medically determinable physical or mental disability to perform substantially all of Executive’s duties for more than one hundred eighty (180) calendar days measured from the last full day of work; or (ii) by reason of mental or physical disability, it is unlikely that Executive will be able, within one hundred eighty (180) calendar days, to resume substantially all business duties and responsibilities in which Executive was previously engaged and otherwise discharge Executive’s duties under this Agreement.

  

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(g)           Change of Control.  For purposes of this Agreement, a “Change of Control” shall be deemed to have occurred:

(i)           If any person (as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than the Company or any trustee or fiduciary holding securities under an employee benefit plan of the Company) becomes a beneficial owner (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than 50% of the voting power of the then outstanding securities of the Company; provided that a Change of Control shall not be deemed to occur as a result of a transaction in which the Company becomes a subsidiary of another corporation and in which the stockholders of the Company, immediately prior to the transaction, will beneficially own, immediately after the transaction, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the parent corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote); or

(ii)           Upon the consummation of (A) a merger or consolidation of the Company with another corporation where the stockholders of the Company, immediately prior to the merger or consolidation, will not beneficially own, immediately after the merger or consolidation, shares entitling such stockholders to more than 50% of all votes to which all stockholders of the surviving corporation would be entitled in the election of directors (without consideration of the rights of any class of stock to elect directors by a separate class vote), or (B) a sale or other disposition of all or substantially all of the assets of the Company.

6. NON-DISCLOSURE, INVENTIONS AND NON COMPETITION.  Executive acknowledges that Executive has executed and agrees to continue to be bound by the terms of the Company’s standard non-disclosure, inventions and non-competition agreement in the form attached hereto as Exhibit B and that such terms are incorporated herein by reference and made a material part of this Agreement (the “Nondisclosure Agreement”).

7. NOTICES.  Any notice required to be given shall be in writing personally delivered by certified mail or registered mail or by facsimile (receipt confirmed) to the address last shown in the Company’s records.

8. SEVERABILITY.  The provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any provision (or part thereof) of this Agreement shall in no way affect the validity or enforceability of any other provision (or remaining part thereof).

9. GOVERNING LAW.  This Agreement shall be governed by and construed according to the laws of the State of North Carolina, without reference to the choice of law provisions of such laws.

  

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10. ENTIRE AGREEMENT.  This Agreement and the Nondisclosure Agreement (including any exhibits or schedules hereto or thereto) contain the entire agreement of the parties relating to the subject matter hereof, and the parties hereto have made no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth herein or therein.  In particular, without limiting the foregoing, this Agreement supersedes in its entirety that certain offer letter from the Company to Executive dated December 1, 1998.  No modification of this Agreement shall be valid unless made in writing and signed by the parties hereto.

11.           BENEFIT.  This Agreement shall be binding upon and inure to the benefit of both parties and their respective heirs, representatives, successors and assigns, including any corporation or other entity with which or into which the Company may be merged or which may succeed to its assets or business; provided, however, that the obligations of Executive are personal and shall not be assigned by Executive.

12.           EXECUTIVE REPRESENTATIONS.

(a)           Executive represents that his performance of this Agreement and as an employee of the Company does not and will not breach any employment, non-competition or other agreement to keep confidential any confidential or proprietary information acquired by Executive in confidence or in trust prior to Executive’s employment by the Company.  Executive represents that he has not entered into, and agrees not to enter into, any agreement that conflicts with or violates this Agreement or would prevent or interfere with the Company’s employment of Executive on the terms set forth herein.

(b)           Executive represents that he has not brought and shall not use in the performance of Executive's responsibilities for the Company, any materials or documents of a former employer which are not generally available to the public or which did not belong to Executive prior to Executive’s employment with the Company, unless Executive has obtained written authorization from the former employer or other owner for their possession and use and provided the Company with a copy thereof.

13.           INJUNCTIVE RELIEF.  Executive understands and agrees that the Company will suffer irreparable harm in the event that Executive breaches any of Executive’s obligations under this Agreement and that monetary damages will be inadequate to compensate the Company for such breach.  Accordingly, Executive agrees that, in the event of a breach or threatened breach by Executive of any of the provisions of this Agreement, the Company, in addition to and not in limitation of any other rights, remedies, or damages available to the Company at law or in equity, shall be entitled to a permanent injunction in order to prevent or to restrain any such breach by Executive, or by Executive’s partners, agents, representatives, servants, employers, employees and/or any and all persons directly or indirectly acting for or with Executive; provided such injunction shall not affect Executive’s ownership rights in the Company or compensation earned or due Executive.

[Signature page follows]

  

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IN WITNESS WHEREOF, the parties hereto have executed this Executive Employment Agreement and affixed their seals as of the day and year first above written.

EMPLOYER:

POZEN INC.

By:_____________________________________

Name:           John R. Plachetka, Pharm.D.

Title:           Chairman, President and CEO

EMPLOYEE:

_________________________________________

Dennis L. McNamara

  

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EXHIBIT A

Responsibility and Tasks List

 

Key Responsibilities and Standards of Performance

Senior Vice President, Chief Business Officer

POZEN, Inc

Key Job Responsibilities

1. Execute corporate development activities, primarily to secure partners to commercialize the POZEN portfolio of products, and interface with strategic advisors on corporate development initiatives.

 

2. Manage strategic alliances, coordinating internal efforts to support successful commercialization of PA by Sanofi, and maintaining relationships with GSK and AZ.

 

3. Manage forecasts, leading analytics for projecting sales of commercialized products and financial modeling to support transactions.

 

4. Direct and assist enforcement of IP rights by outside counsel and licensees.

 

5. Interact with investors, analysts and investment banks on a regular basis regarding commercial activities by strategic partners and IP activities, and otherwise as needed.

 

6. Lead the commercial analysis and identification of potential IP protection for novel product concepts.

 

7. Participate in the management of the company as a member of the Executive Committee.

 

8. Other Duties as assigned

 

 Standards of Performance

Quality

 Deal structures and terms are negotiated within approved parameters, and contracts protect POZEN’s interests; priority targets for PA are identified proactively.

 

 Enforcement actions are reviewed comprehensively with outside counsel.

 

 Patent and trademark applications are comprehensive and accurate, bringing all available information and data to bear.

 

 Interactions with partners are effective and efficient, potential conflicts are addressed and resolved promptly

Speed

 Substantive and urgent responses to all BD communications are provided to ensure timely progression of discussions.

 

 All input to enforcement actions is provided in advance of deadlines.

 

 Disclosure of potential inventions is prompt, and all prosecution filings are within the PTO (or foreign office) time limits.

 

 All contractual obligations are met within negotiated time limits.

  

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Cost

 Budgets provide sufficient resources to accomplish objectives, and all activities are carried out within budget.

 

 

  

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EXHIBIT B

See Attached Non-Disclosure, Invention And Non-Competition Agreement

  

xEnertopia Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

STOCK OPTION AGREEMENT 

ENERTOPIA CORP. 

THIS AGREEMENT is entered into as of the 1st day of
January 1, 2014 (the “Date of Grant”) 

BETWEEN: 

ENERTOPIA CORP., a company
incorporated pursuant to the laws of the State of Nevada, of Suite 950 1130 West
Pender, Vancouver, BC V6E 4A4 

(the “Company”) 

AND: 

(the “Optionee”) 

WHEREAS: 

A.      The Board of Directors of the
Company (the “Board”) has approved and adopted the 2011 Stock Option Plan (the
“Plan”), pursuant to which the Board is authorized to grant to employees and
other selected persons stock options to purchase common shares of the Company
(the “Common Stock”); 

B.      The Plan provides for the
granting of stock options that either (i) are intended to qualify as “Incentive
Stock Options” within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”), or (ii) do not qualify under Section 422 of the
Code (“Non-Qualified Stock Options”); and 

C.      The Board has authorized the
grant to the Optionee of options to purchase a total of 200,000 shares of
Common Stock (the “Options”), which Options are intended to be (select one):

		[     ] 	Incentive Stock Options; 
	 	 	 
		[ X ] 	Qualified Stock Options 

NOW THEREFORE, the Company agrees to offer to the Optionee the
option to purchase, upon the terms and conditions set forth herein and in the
Plan, XXX shares of Common Stock. Capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Plan. 

ITEM 1      Exercise price. The
exercise price of the options shall be us $0.075 per share. 

ITEM 2      Limitation on the number
of shares. If the options granted hereby are incentive stock options, the number
of shares which may be acquired upon exercise thereof is subject to the
limitations set forth in section 5.1 of the plan. 

- 2 – 

ITEM 3      Vesting schedule. The
options shall vest in accordance with exhibit a. 

ITEM 4      Options not transferable.
The options may not be transferred, assigned, pledged or hypothecated in any
manner (whether by operation of law or otherwise) other than by will, by
applicable laws of descent and distribution or, in the case of a non-qualified
stock option, pursuant to a qualified domestic relations order, and shall not be
subject to execution, attachment or similar process; provided, however,
that if the options represent a non-qualified stock option, such option is
transferable without payment of consideration to immediate family members of the
optionee or to trusts or partnerships established exclusively for the benefit of
the optionee and optionee’s immediate family members. Upon any attempt to
transfer, pledge, hypothecate or otherwise dispose of any option or of any right
or privilege conferred by the plan contrary to the provisions thereof, or upon
the sale, levy or attachment or similar process upon the rights and privileges
conferred by the plan, such option shall thereupon terminate and become null and
void. 

ITEM 5      Investment intent. By
accepting the options, the optionee represents and agrees that none of the
shares of common stock purchased upon exercise of the options will be
distributed in violation of applicable federal and state laws and regulations.
In addition, the company may require, as a condition of exercising the options,
that the optionee execute an undertaking, in such a form as the company shall
reasonably specify, that the stock is being purchased only for investment and
without any then-present intention to sell or distribute such shares. 

ITEM 6      Termination of employment
and options. Vested options shall terminate, to the extent not previously
exercised, upon the occurrence of the first of the following events: 

	 	(A) 	
      Expiration. Five (5) years from the date of
  grant.

	 	 	 
	 	(B) 	
      Termination for cause. The date of the first discovery by
      the company of any reason for the termination of an optionee’s employment
      or contractual relationship with the company or any related company for
      cause (as determined in the sole discretion of the plan administrator),
      and, if an optionee’s employment is suspended pending any investigation by
      the company as to whether the optionee’s employment should be terminated
      for cause, the optionee’s rights under this agreement and the plan shall
      likewise be suspended during the period of any such
  investigation.

	 	 	 
	 	(C) 	
      Termination due to death or disability. The expiration of
      one (1) year from the date of the death of the optionee or cessation of an
      optionee’s employment or contractual relationship by reason of disability
      (as defined in section 5.1(g) of the plan). If an optionee’s employment or
      contractual relationship is terminated by death, any option held by the
      optionee shall be exercisable only by the person or persons to whom such
      optionee’s rights under such option shall pass by the optionee’s will or
      by the laws of descent and distribution.

	 	 	 
	 	(D) 	
      Termination for any other reason. The expiration of
      ninety (90) days from the date of an optionee’s termination of employment
      or contractual relationship with the company or any related corporation for any reason
whatsoever other than termination of service as a director, cause, death or
disability (as defined in section 5.1(g) of the plan). 

- 3 – 

Each unvested Option granted pursuant hereto shall terminate
immediately upon termination of the Optionee’s employment or contractual
relationship with the Company for any reason whatsoever, including Disability
unless vesting is accelerated in accordance with Section 5.1(f) of the Plan.

ITEM 7      Stock. In the case
of any stock split, stock dividend or like change in the nature of shares of
stock covered by this agreement, the number of shares and exercise price shall
be proportionately adjusted as set forth in section 5.1(m) of the plan. 

ITEM 8      Exercise of option.
Options shall be exercisable, in full or in part, at any time after vesting,
until termination; provided, however, that any optionee who is subject to
the reporting and liability provisions of section 16 of the securities
exchange act of 1934 with respect to the common stock shall be precluded
from selling or transferring any common stock or other security underlying an
option during the six (6) months immediately following the grant of that option.
If less than all of the shares included in the vested portion of any option are
purchased, the remainder may be purchased at any subsequent time prior to the
expiration of the option term. No portion of any option for less than fifty (50)
shares (as adjusted pursuant to section 5.1(m) of the plan) may be exercised;
provided, that if the vested portion of any option is less than fifty (50)
shares, it may be exercised with respect to all shares for which it is vested.
Only whole shares may be issued pursuant to an option, and to the extent that an
option covers less than one (1) share, it is unexercisable. 

Each exercise of the Option shall be by means of delivery of a
notice of election to exercise (which may be in the form attached hereto as
Exhibit B) to the President of the Company at its principal executive
office, specifying the number of shares of Common Stock to be purchased and
accompanied by payment in cash by certified check or cashier’s check in the
amount of the full exercise price for the Common Stock to be purchased. In
addition to payment in cash by certified check or cashier’s check, an Optionee
or transferee of an Option may pay for all or any portion of the aggregate
exercise price by complying with one or more of the following alternatives: 

	 	(A) 	
      By delivering to the company shares of common stock
      previously held by such person, duly endorsed for transfer to the company,
      or by the company withholding shares of common stock otherwise deliverable
      pursuant to exercise of the option, which shares of common stock received
      or withheld shall have a fair market value at the date of exercise (as
      determined by the plan administrator) equal to the aggregate purchase
      price to be paid by the optionee upon such exercise; or

	 	 	 
	 	(B) 	
      By complying with any other payment mechanism approved by
      the plan administrator at the time of
exercise.

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It is a condition precedent to the issuance of shares of Common
Stock that the Optionee execute and/or deliver to the Company all documents and
withholding taxes required in accordance with Section 5.1 of the Plan. 

ITEM 9      Holding period for
incentive stock options. In order to obtain the tax treatment provided for
incentive stock options by section 422 of the code, the shares of common stock
received upon exercising any incentive stock options received pursuant to this
agreement must be sold, if at all, after a date which is later of two (2) years
from the date of this agreement is entered into or one (1) year from the date
upon which the options are exercised. The optionee agrees to report sales of
shares prior to the above determined date to the company within one (1) business
day after such sale is concluded. The optionee also agrees to pay to the
company, within five (5) business days after such sale is concluded, the amount
necessary for the company to satisfy its withholding requirement required by the
code in the manner specified in section 5.1(l) of the plan. Nothing in this
section 9 is intended as a representation that common stock may be sold without
registration under state and federal securities laws or an exemption therefrom
or that such registration or exemption will be available at any specified time.

ITEM 10      Resale restrictions
may apply. Any resale of the shares of common stock received upon exercising
any options will be subject to resale restrictions contained in the securities
legislation applicable to the optionee. The optionee acknowledges and agrees
that the optionee is solely responsible (and the company is not in any way
responsible) for compliance with applicable resale restrictions. 

ITEM 11      Subject to 2011 stock
option plan. The terms of the options are subject to the provisions of the
plan, as the same may from time to time be amended, and any inconsistencies
between this agreement and the plan, as the same may be from time to time
amended, shall be governed by the provisions of the plan, a copy of which has
been delivered to the optionee, and which is available for inspection at the
principal offices of the company. 

ITEM 12      Professional advice.
The acceptance of the options and the sale of common stock issued pursuant
to the exercise of options may have consequences under federal and state tax and
securities laws which may vary depending upon the individual circumstances of
the optionee. Accordingly, the optionee acknowledges that he or she has been
advised to consult his or her personal legal and tax advisor in connection with
this agreement and his or her dealings with respect to options. Without limiting
other matters to be considered with the assistance of the optionee’s
professional advisors, the optionee should consider: (a) whether upon the
exercise of options, the optionee will file an election with the internal
revenue service pursuant to section 83(b) of the code and the implications of
alternative minimum tax pursuant to the code; (b) the merits and risks of an
investment in the underlying shares of common stock; and (c) any resale
restrictions that might apply under applicable securities laws. 

ITEM 13      No employment
relationship. Whether or not any options are to be granted under this plan
shall be exclusively within the discretion of the plan administrator, and
nothing contained in this plan shall be construed as giving any person any right
to participate under this plan. The grant of an option shall in no way
constitute any form of agreement or understanding binding on the company or any
related company, express or implied, that the company or any related company
will employ or contract with an optionee, for any length of time, nor shall it interfere in any way with the company’s or, where applicable, a
related company’s right to terminate optionee’s employment at any time, which
right is hereby reserved.

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ITEM 14     Entire agreement. This
agreement is the only agreement between the optionee and the company with
respect to the options, and this agreement and the plan supersede all prior and
contemporaneous oral and written statements and representations and contain the
entire agreement between the parties with respect to the options. 

ITEM 15      Notices. Any
notice required or permitted to be made or given hereunder shall be mailed or
delivered personally to the addresses set forth below, or as changed from time
to time by written notice to the other: 

The Company: 

Enertopia Corp. 
Suite 950
1130 West Pender Street 
Vancouver, BC V6E 4A4 
Attention: President 

With a copy to: 

W.L. Macdonald Law Corporation
 400
– 570 Granville Street 
Vancouver, British Columbia V6C 3P1 
Attention:
William Macdonald 

The Optionee: 

_____________________
_____________________
_____________________
_____________________

ENERTOPIA CORP. 

Per:
______________________________
       
Authorized Signatory 

     
      
______________________________

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EXHIBIT A 

TERMS OF THE OPTION 

	Name of the Optionee: 	  
	 	 
	Date of Grant: 	January 1, 2014 
	 	 
	Designation: 	Qualified Stock Options

	 	 
	1.               Number of Options
      granted: 	XXX stock options 
	 	 
	2.               Purchase Price: 	$0.075 per share 
	 	 
	3.               Vesting Date: 	100,000 options on January 1,
      2014; 
	  	50,000 options on February 1, 2014
      
	  	50,000 options on March 1, 2014
      
	 	 
	4.              Expiration Date: 	January 1, 2019
  
	 	 

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EXHIBIT B 

To: 

               
         Enertopia Corp. 

               
         Suite 950 1130 West Pender 

               
         Vancouver, BC V6E 4A4 

                  
      Attention: President 

Notice of Election to Exercise 

This Notice of Election to Exercise shall constitute proper
notice pursuant to Section 5.1(h) of Enertopia Corp.’s (the “Company”) 2011
Stock Option Plan (the “Plan”) and Section 8 of that certain Stock Option
Agreement (the “Agreement”) dated as of the _______day of
__________________, 20___, between the Company and the undersigned. 

The undersigned hereby elects to exercise Optionee’s option to
purchase __________________shares of the common stock of the Company at a price
of US$0.075 per share, for aggregate consideration of US$__________, on the
terms and conditions set forth in the Agreement and the Plan. Such aggregate
consideration, in the form specified in Section 8 of the Agreement, accompanies
this notice. 

The Optionee hereby directs the Company to issue, register and
deliver the certificates representing the shares as follows: 

	
    Registration
      Information: 

    

	
     
	
    Delivery Instructions: 

	
    Name to appear on
      certificates 
	
     
	
      Name 

       

	
    Address 
	
     
	
      Address 

       

	
      
	
    
	
    Telephone Number 

	  		

- 8 – 

DATED at ____________________________________, the _______day
of ________________________, 20___. 

____________________________________
(Name of Optionee –
Please type or print) 

____________________________________
(Signature and, if
applicable, Office) 
 

____________________________________
(Address of Optionee)

____________________________________
(City, State, and Zip
Code of Optionee)

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