Document:

Enertopia Corp.: Exhibit 10.3 - Filed by newsfilecorp.com

SETTLEMENT AGREEMENT

THIS AGREEMENT dated for reference the 31st of May,
2010.

BETWEEN:

	 	CHEETAH OIL & GAS LTD , a company
      duly incorporated 	 
		under the laws of the State of Nevada and
      having its registered and records office at Box 172 Station A, Nanaimo BC,
      V9R 5K9 Ph 250- 714-1101 FAX 250-714-1186 	
	 	 	 
	 	(the “Company”) 	 

OF THE FIRST PART AND:

	 	ENERTOPIA CORP, (FORMERLY GOLDEN ARIA CORP)
      a 	 
		company duly incorporated under the laws of the
      State of Nevada and having an office at Suite 1004 – 1708 Dolphin Ave,
      Kelowna BC, V1Y 9S4 Ph 250-717-0977 FAX 250-717-0677 	
	 	 	 
	 	(the “Assignee”) 	 

OF THE SECOND PART

WHEREAS:

A.        The Assignee on or
about August 28, 2009, entered into an assignment agreement with the Company
whereby the Assignee paid a fee of US$45,000.00 to earn a 57.76% share of the
Company’s 8% interest in a proposed oil well to be drilled in Wilkinson County,
Mississippi (the “Assigned Interest”).

B.        As of the date of
this Settlement Agreement, the oil well has not been drilled, due to weather
conditions beyond the Company’s control. There is some doubt as to when or if
this well will be drilled in any reasonable time period. 

C.        The Assignee and the Company wish to settle the existing
Assigned Interest by making such assignment null and void, and issuing common
shares and warrants of the Company in exchange for the $45,000.00 earlier
received by the Company.

NOW THEREFORE WITNESSETH that in consideration of the premises
and of the covenants and agreements set out herein, the parties hereto covenant
and agree as follows:

1.       
ACKNOWLEDGMENT OF CLAIM

1.1        The Company
acknowledges and agrees that it holds US$45,000.00 furnished to it by the
Assignee.

2.        ALLOTMENT
AND ISSUANCE OF SECURITIES

2.1        The Company
agrees to allot and issue to the Assignee 375,000 restricted shares in the
capital of the Company (the “Shares”) at a deemed price of US$0.12 per Share for
each US$0.12 of the claim amount, and for each such share so issued, will issue
one warrant to purchase a further share of the Company at a price of US$0.20 per
share for a term of two years (the “Warrants”) as full and final settlement of
the US$45,000.00.

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2.2        The Assignee
hereby agrees that, upon delivery of the Shares and the Warrants by the Company
in accordance with the provisions of this Agreement, that the claim will be
fully satisfied and extinguished effective as of the date set out above, and the
Assignee will remise, release and forever discharge the Company and its
directors, officers and employees from any and all obligations relating to the
Assigned Interest and the original oil well assignment dated August 28,
2009.

2.3        The Assignee
hereby agrees that, upon delivery of the Shares and the Warrants by the Company
in accordance with the provisions of this Agreement, that the Assigned Interest
shall revert back to the Company and that the Assignee shall have no claim over
the Assigned Interest.

3.         
 REGULATORY RESTRICTIONS

3.1        The Assignee
acknowledges to the Company that:

	 	(a) 	
      the Company is relying on exemptions from the
      registration requirements of the U.S. Securities Act of 1933. The
      shares and warrants have not been registered under the U.S. Securities
      Act of 1933 and may not be offered or sold in the United States or to
      U.S. persons unless registered under such Act or an exemption from the
      registration requirements of such act, as available.

	 	 	 
	 	(b) 	
      the Assignee will be the beneficial owner of the
      Shares;

	 	 	 
	 	(c) 	
      the Shares are not being acquired as a result of any
      material information that has not been generally disclosed to the
      public;

	 	 	 
	 	(d) 	
      with respect to the issuance of the Shares and the
      Warrants, the Company is relying on the exemption from the prospectus and
      registrations requirements provided by Section 2.13 –

	 	 	 
	 		
      Petroleum, Natural Gas and Mining Properties as
      provided in National Instrument 45-106 Prospectus and Registration
      Exemptions;

	 	 	 
	 	(e) 	
      the Assignee is an accredited investor; and

	 	 	 
	 	(f) 	
      the Assignee will seek its own independent legal advice
      as to any restrictions imposed by the U.S. Securities Act of 1933
      on the Assignee respecting disposition of the Shares.

	 	 	 
	 	(g) 	
      the Shares and Warrants to be issued in satisfaction of
      the debt will be subject to the following legend:

	 	 	 
	 		
      “The securities evidenced by this certificate have not
      been registered under the United States Securities Act of 1933, as
      amended, or any applicable U.S. State securities law, and no interest
      therein may be sold, distributed, assigned, offered, pledged or otherwise
      transferred or disposed of unless (a) there is an effective registration
      statement under such act and applicable United States State securities
      laws covering any such transaction involving said securities, or (b) this
      corporation receives an opinion of legal counsel for the holder of these
      securities (concurred in by legal counsel for this corporation) stating
      that such transaction is exempt from registration, or (c) this corporation
      otherwise satisfies itself that such transaction is exempt from
      registration.

	 	 	 
	 		
      Unless permitted under securities legislation, the
      holder of this security must not trade the security before October 5,
      2010”

4.         
GENERAL PROVISIONS

4.1        Time shall be of
the essence of this Agreement.

4.2        The Company and
the Assignee shall execute such further assurances and other documents and
instruments and shall do such further and other things as may be necessary to
implement and carry out the intent of this Agreement.

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4.3        The provisions
herein contained constitute the entire agreement between the parties and
supersede all previous understandings, communications, representations and
agreements, whether written or verbal, between the parties with respect to the
subject matter of this Agreement.

4.4        This Agreement
shall be governed by and construed in accordance with the laws of the United
States. 4.5 All dollar amounts referred to in this Agreement have been expressed
in United States currency, unless otherwise indicated.

4.6        This Agreement
shall enure to the benefit of and be binding upon each of the parties and their
respective heirs, executors, administrators, successors and assigns, as the case
may be.

IN WITNESS WHEREOF the parties hereto have executed these
present on the 31st day of May, 2010.

	ENERTOPIA CORP. 	 	) 
	  	 	) 
	  	 	) 
	  	 	) 
	     Authorized Signatory 	 	) 
	  	 	) 
	  	 	) 
	  	 	) 
	  	 	) 
	     Authorized Signatory 	 	) 
	  	 	) 

	CHEETAH OIL & GAS LTD. 	 	) 
	  	 	) 
	  	 	) 
	  	 	) 
	Authorized Signatory 	 	) 
	  	 	) 
	  	 	) 
	  	 	) 
	  	 	  
	Authorized Signatoryexh_thirdamendtonpa.htm

Exhibit 10.1

 

THIRD AMENDMENT TO

SENIOR SUBORDINATED NOTE PURCHASE AND SECURITY AGREEMENT

 

THIS THIRD AMENDMENT TO SENIOR SUBORDINATED NOTE PURCHASE AND SECURITY AGREEMENT dated as of June 3, 2010 (the “Amendment”) amends the Senior Subordinated Note Purchase and Security Agreement dated as of November 6, 2009 (as the same may be amended from time to time, the “Original Agreement”), by and among Mill Road Capital, L.P., a Delaware limited partnership (the “Holder”), Physicians Formula, Inc., a New York corporation (the “Borrower”), Physicians Formula Holdings, Inc., a Delaware corporation (“Holdings”) and the Guarantors party to the Original Agreement.

 

WHEREAS, the Holder, the Borrower, Holdings and the Guarantors desire to amend the Original Agreement to change the duration and terms of the Holder’s right to nominate one individual to serve as a member of the Board of Directors of Holdings; and

 

WHEREAS, the Holder holds Notes representing at least a majority of the aggregate principal amount of the Notes outstanding on the date hereof;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties to this Amendment hereby agree as follows:

 

	
1.  

	
Defined Terms

 

Capitalized terms used herein, unless specified otherwise, shall have the same meanings and/or references as contained in the Original Agreement.

 

	
2.  

	
Original Agreement Modifications

 

(a) Section 7.33(a) of the Original Agreement is hereby amended and restated in its entirety as follows:

 

“(a)           As of April 29, 2010 (the “Designee Date”), and for so long as (i) the outstanding principal amount under the Note is no less than $2,000,000 and MRC owns shares of, or securities convertible into, or exercisable for, capital stock of Holdings, or (ii) MRC owns no less than 5% of the issued and outstanding capital stock of Holdings (on a fully diluted basis) and any part of the Note is outstanding, MRC shall have the right to nominate one individual to serve as a member of Holdings’ Board of Directors (“MRC’s Designee”), and Holdings agrees (x) to increase the size of Holdings’ Board of Directors and appoint MRC’s Designee to Holdings’ Board of Directors as of the Designee Date, and (y) to recommend to Holdings’ stockholders that MRC’s Designee be elected to Holdings’ Board of Directors at annual meetings of stockholders occurring after the Designee Date and thereafter for as long as the conditions stated in subsections (i) or (ii) above are met.”

 

 

 

 

	
3.  

	
Amendment to Operative Documents; Consistent Changes

 

References to the “Purchase Agreement” or the “Note Purchase Agreement” in the Operative Documents shall be deemed to be references to the Original Agreement as amended by this Amendment.  Furthermore, the Operative Documents are hereby amended wherever necessary to reflect the changes described herein.

 

	
4.  

	
Confirmation of Certain Terms and Other Matters

 

1. Each of the Borrower, Holdings, the Guarantors and the Holder hereby ratify and confirm all terms and provisions of the Operative Documents and all other documents, instruments, or agreements executed in connection therewith and agree that, except as expressly amended herein, all of such terms and provisions remain in full force and effect.  The Borrower , Holdings, the Guarantors and the Holder hereby confirm and acknowledge that the obligations of the Borrower, Holdings and the Guarantors under the Original Agreement include all obligations and liabilities of the Borrower, Holdings and the Guarantors under the Original Agreement, as amended from time to time including, but not limited to, this Amendment.  Each of the Borrower, Holdings and the Guarantors also confirm and acknowledge that this Amendment and the documents, instruments or agreements executed in connection therewith shall constitute Operative Documents.  Except as expressly provided herein, this Amendment shall not be deemed a waiver of any term or condition of any Operative Document and shall not be deemed to prejudice any right or rights which the Holder may now have or may have in the future under or in connection with any Operative Document or any of the instruments or agreements referred to therein, as the same may be amended from time to time.

 

	
5.  

	
Miscellaneous

 

(a) This Amendment shall be governed by, and construed and enforced in accordance with, the substantive laws of the State of New York, without regard to its principles of conflicts of laws.

 

(b) This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Any counterpart may be executed by the delivery of a facsimile signature thereon by telecopier or by electronic mail, each of which shall be of the same legal effect, validity and enforceability as an original manually executed signature page.

 

(c) Each of the Borrower, Holdings and the Guarantors shall, from time to time, at its expense, execute and deliver to the Holder all such other and further instruments, agreements and documents and take or cause to be taken all such other and future action as the Holder shall reasonably request in order to effect and confirm or vest more securely all rights contemplated by this Amendment, the Original Agreement or any Operative Document.

 

 

<The remainder of this page is intentionally left blank>

  

 

-2-

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

	
  

	
BORROWER:

	
  

	
PHYSICIANS FORMULA, INC.,

a New York Corporation

	
  

	
By:

	
/s/ Jeffrey Rogers

	 

	
  

	
Name: Jeffrey P. Rogers

	
  

	
Title: President

	
  

	
GUARANTORS:

	
  

	
PHYSICIANS FORMULA HOLDINGS, INC.,

	
  

	
a Delaware Corporation

 

 

  

	 	
By:

	
/s/ Jeffrey Rogers

	 

	
  

	
Name: Jeffrey P. Rogers

	
  

	
Title: President

 

	
  

	
PHYSICIANS FORMULA COSMETICS, INC.,

	
  

	
a Delaware Corporation

 

 

 

	 	
By:

	
/s/ Jeffrey Rogers

	 

	
  

	
Name: Jeffrey P. Rogers

	
  

	
Title: President

 

 

	
  

	
PHYSICIANS FORMULA DRTV, LLC,

	
  

	
a Delaware Limited Liability Company

 

 

	 	
By:

	
/s/ Jeffrey Rogers

	 

	
  

	
Name: Jeffrey P. Rogers

	
  

	
Title: President

 

 

 

 

 

 

	
  

	
HOLDER:

	
  

	
MILL ROAD CAPITAL, L.P.,

a Delaware Limited Partnership

 

 

 

	 	
By:

	
/s/ Charles Goldman

	 

	
  

	
Name: Charles Goldman

	
  

	
Title: Managing Director

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