45-102 - Resale of Securities [MI - Rescinded]

MULTILATERAL INSTRUMENT 45-102
RESALE OF SECURITIES

TABLE OF CONTENTS

PART 1 DEFINITIONS

1.1 Definitions

PART 2 FIRST TRADES

2.1 Application
2.2 Removal of Resale Provisions
2.3 Section 2.5 Applies
2.4 Section 2.6 Applies
2.5 Restricted Period
2.6 Seasoning Period
2.7 Filing of Forms 45-102F1 and 45-102F2
2.8 Exemption for a Trade by a Control Person
2.9 Determining Time Periods
2.10 Exemption for a Trade in an Underlying Security if the Convertible Security, Exchangeable Security or Multiple Convertible Security is Qualified by a Prospectus
2.11 Exemption for a Trade in a Security Acquired in a Take-over Bid or Issuer Bid
2.12 Exemption for a Trade in an Underlying Security if the Convertible Security, Exchangeable Security or Multiple Convertible Security is Qualified by a Securities Exchange Take-over Bid Circular or Issuer Bid Circular
2.13 Trades by Underwriters
2.14 First Trades in Securities of a Non-Reporting Issuer Distributed under a Prospectus Exemption

PART 3 CURRENT AIF FILING REQUIREMENTS

3.1 Current AIF

PART 4 EXEMPTION

4.1 Exemption

PART 5 EFFECTIVE DATE

5.1 Effective Date

APPENDIX A CONTROL DISTRIBUTIONS
APPENDIX B REPORTING ISSUER JURISDICTIONS
APPENDIX C NON-APPLICABLE RESALE PROVISIONS
APPENDIX D RESTRICTED PERIOD TRADES
APPENDIX E SEASONING PERIOD TRADES
APPENDIX F EMPLOYEE TRADES
APPENDIX G AMALGAMATIONS OR MERGERS
APPENDIX H UNDERWRITERS

FORM 45-102F1 REPORT MADE UNDER SUBSECTION 2.7(1) OF MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES WITH RESPECT TO AN ISSUER THAT HAS CEASED TO BE A PRIVATE COMPANY OR PRIVATE ISSUER

FORM 45-102F2 CERTIFICATE UNDER SUBSECTION 2.7(2) OR (3) OF MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

FORM 45-102F3 NOTICE OF INTENTION TO DISTRIBUTE SECURITIES AND ACCOMPANYING DECLARATION UNDER SECTION 2.8 OF MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

PART 1             DEFINITIONS

1.1        Definitions - In this Instrument

"AIF"means an annual information form of an issuer;

"approved rating" means, for a security, a rating at or above one of the following rating categories issued by an approved rating organization for the security or a rating category that preceded or replaces a category listed below:

"approved rating organization" means each of Dominion Bond Rating Service Limited, Fitch, Inc., Moody's Investors Service, Inc., Standard & Poor's Corporation, and any of their predecessors or successors;

"control distribution" means a trade described in the provisions of securities legislation listed in Appendix A;

"convertiblesecurity" means a security of an issuer that is convertible into, or carries the right of the holder to purchase or otherwise acquire, or of the issuer to cause the purchase or acquisition of, a security of the same issuer;

"CPC" means a capital pool company as defined in a CPC instrument and, in Manitoba, a keystone company as defined in Manitoba Securities Commission Rule 44-501 Keystone Companies;

"CPC information circular" means an information circular filed by an issuer and accepted under a CPC instrument in connection with a qualifying transaction;

"CPC instrument" means a rule or regulation of a jurisdiction, or a rule, regulation or policy of an exchange in Canada, that applies only to CPCs;

"current AIF" means

(a)        an AIF that is a current AIF filed under NI 44-101 in at least one of the jurisdictions listed in Appendix B,

(b)        an AIF that is a "Current AIF" as defined in NP 47 filed under NP 47 in at least one of the jurisdictions listed in Appendix B,

(c)        an AIF in the form required by Form 44-101F1 filed in at least one of the jurisdictions listed in Appendix B by an issuer not eligible to use NI 44-101 and containing audited financial statements for the issuer's most recently completed financial year,

(d)        an AIF that is a current AIF filed under British Columbia Instrument 45-506 or Alberta Rule 45-501,

(e)        a prospectus which has been filed in any jurisdiction that includes audited financial statements for the issuer's most recently completed financial year, other than

(i)         a short form prospectus filed under NI 44-101, 

(ii)         a short form prospectus filed under NP 47, or

(iii)        a prospectus filed under a CPC instrument,

(f)         a CPC information circular filed in any jurisdiction that includes

(i)         audited financial statements for the issuer's most recently completed financial year,

(ii)         audited financial statements for the target issuer's most recently completed financial year, and

(iii)        a pro forma balance sheet that gives effect to the qualifying transaction accompanied by a compilation report of an auditor, and

(g)        a current annual report on Form 10-K or Form 20-F under the 1934 Act for the issuer's most recently completed financial year filed in any jurisdiction by an issuer that has securities registered under section 12 of the 1934 Act or has a reporting obligation under subsection 15(d) of the 1934 Act;

"distribution date" means

(a)        in respect of a trade that is not a control distribution, the date the security that is the subject of the trade was distributed in reliance on an exemption from the prospectus requirement by the issuer or, in the case of a control distribution, by the selling security holder,

(b)        in respect of a trade that is a control distribution, the date the security that is the subject of the trade was acquired by the selling security holder,

(c)        in respect of a trade of an underlying security that is not a control distribution, the date the convertible security, exchangeable security or multiple convertible security that, directly or indirectly, entitled or required the holder to acquire the underlying security was distributed in reliance on an exemption from the prospectus requirement by the issuer or, in the case of a control distribution, by the selling security holder, or

(d)        in respect of a trade of an underlying security that is a control distribution, the date the convertible security, exchangeable security or multiple convertible security that, directly or indirectly, entitled or required the holder to acquire the underlying security was acquired by the selling security holder;

"exchangeable security" means a security of an issuer that is exchangeable for, or carries the right of the holder to purchase or otherwise acquire, or of the issuer to cause the purchase or acquisition of, a security of another issuer;

"multiple convertible security" means a security of an issuer that is convertible into, or exchangeable for, or carries the right of the holder to purchase or otherwise acquire, or of the issuer to cause the purchase or acquisition of, a convertible security, an exchangeable security or another multiple convertible security;

"NI 13-101" means National Instrument 13-101 System for Electronic Document Analysis and Retrieval (SEDAR);

"NI 43-101" means National Instrument 43-101 Standards of Disclosure for Mineral Projects;

"NI 44-101" means National Instrument 44-101 Short Form Prospectus Distributions;

"NP 47" means National Policy Statement No. 47 Prompt Offering Qualification System;

"NP 2-B" means National Policy Statement No. 2-B Guide for Engineers and Geologists Submitting Oil and Gas Reports to Canadian Provincial Securities Administrators in the form in place on the effective date of this Instrument;

"private company" has the meaning ascribed to that term in securities legislation;

"private issuer" has the meaning ascribed to that term in securities legislation except in Ontario where "private issuer" means a person that

(a)        is not a reporting issuer or a mutual fund,

(b)        is an issuer all of whose issued and outstanding shares

(i)         are subject to restrictions on transfer contained in the constating documents of the issuer or one or more agreements among the issuer and the holders of its securities; and

(ii)         are beneficially owned, directly or indirectly, by not more than 50 persons or companies, counting any two or more joint registered holders as one beneficial owner, exclusive of persons

(A)        that are employed by the issuer or an affiliated entity of the issuer, or

(B)        that beneficially owned, directly or indirectly, shares of the issuer while employed by it or an affiliated entity of it and at all times since ceasing to be so employed have continued to beneficially own, directly or indirectly, at least one share of the issuer, and

(c)        has not distributed any securities to the public;

"qualified market" means any of

(a)        The Toronto Stock Exchange Inc.,

(b)        Tier 1 or Tier 2 of the Canadian Venture Exchange Inc.,

(c)        Bourse de Montréal Inc.,

(d)        the American Stock Exchange,

(e)        Nasdaq National Market,

(f)         Nasdaq SmallCap Market,

(g)        the New York Stock Exchange,

(h)        the London Stock Exchange Limited, and

(i)         any predecessor or successor to any of the entities referred to in paragraphs (a) through (h);

"qualifying issuer" means an issuer

(a)        that is a reporting issuer in a jurisdiction listed in Appendix B,

(b)        that is an electronic filer under NI 13-101,

(c)        that has a current AIF filed on SEDAR,

(d)        that

(i)         has a class of equity securities listed or quoted on a qualified market, has not been notified by the qualified market that it does not meet the requirements to maintain that listing or quotation and is not designated inactive, suspended or the equivalent, or

(ii)         has a class of securities outstanding that has an approved rating,

(e)        if it is not qualified to file a short form prospectus under NI 44-101, or prior to the effective date of NI 44-101 was not qualified to file a short form prospectus under NP 47, and has a mineral project or oil and gas producing activities, including exploration, that has filed with its current AIF, as if the current AIF were a prospectus, technical reports in accordance with NI 43-101 if the current AIF was filed after the effective date of NI 43-101, or a technical report and certificate prepared in accordance with NP 2-B,

(f)         that, if it has received a notice in writing from any regulator that its current AIF, including any technical reports, is unacceptable, has satisfied the regulator that its current AIF is acceptable, and

(g)        that, if it is a CPC, has filed a CPC information circular;

"qualifying transaction" means a transaction that, if completed, would result in the issuer no longer being a CPC;

"SEDAR" has the meaning ascribed to that term in NI 13-101; and

"underlying security" means a security issued or transferred, or to be issued or transferred, in accordance with the terms of a convertible security, an exchangeable security or a multiple convertible security.

PART 2             FIRST TRADES

2.1        Application - Except for sections 2.1, 2.8 and 2.9, this Part does not apply in Manitoba, New Brunswick, Prince Edward Island and the Yukon Territory.

2.2        Removal of Resale Provisions - The provisions in securities legislation listed in Appendix C do not apply.

2.3        Section 2.5 Applies - If a security was distributed under any of the provisions listed in Appendix D, the first trade of that security is subject to section 2.5.

2.4        Section 2.6 Applies - If a security was distributed under any of the provisions listed in Appendix E, the first trade of that security is subject to section 2.6.

2.5        Restricted Period

(1)        Unless the conditions in subsection (2) or (3) are satisfied, a trade that is specified by section 2.3 or other securities legislation to be subject to this section is a distribution.

(2)        If the issuer of the securities was a qualifying issuer at the distribution date, the conditions are:

1.         The issuer is and has been a reporting issuer in a jurisdiction listed in Appendix B for the four months immediately preceding the trade.

2.         At least four months have elapsed from the distribution date.

3.         If the distribution date is on or after the effective date of this Instrument, a certificate representing the securities was issued that carried a legend stating:

"Unless permitted under securities legislation, the holder of the securities shall not trade the securities before [insert the date that is four months and a day after the distribution date].".

4.         The trade is not a control distribution.

5.         No unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade.

6.         No extraordinary commission or consideration is paid to a person or company in respect of the trade.

7.         If the selling security holder is an insider or officer of the issuer, the selling security holder has no reasonable grounds to believe that the issuer is in default of securities legislation.

(3)        If the issuer of the securities was not a qualifying issuer at the distribution date, the conditions are:

1.         The issuer is and has been a reporting issuer for the 12 months immediately preceding the trade

(a)        in a jurisdiction listed in Appendix B, if the issuer is an electronic filer under NI 13-101; or

(b)        in the local jurisdiction of the purchaser of the securities that are the subject of the trade, if the issuer is not an electronic filer under NI 13-101.

2.         At least 12 months have elapsed from the distribution date.

3.         If the distribution date is on or after the effective date of this Instrument, a certificate representing the securities was issued that carried a legend

(a)        if the issuer is a reporting issuer in a jurisdiction listed in Appendix B and is an electronic filer under NI 13-101 on the distribution date, stating:

"Unless permitted under securities legislation, the holder of the securities shall not trade the securities before [insert the date that is 12 months and a day after the distribution date]."; or

(b)        if the issuer is not a reporting issuer in a jurisdiction listed in Appendix B at the distribution date, stating:

"Unless permitted under securities legislation, the holder of the securities shall not trade the securities before the earlier of (i) the date that is 12 months and a day after the date the issuer first became a reporting issuer in any of Alberta, British Columbia, Manitoba, Nova Scotia, Ontario, Quebec and Saskatchewan, if the issuer is a SEDAR filer; and (ii) the date that is 12 months and a day after the later of (A) the distribution date, and (B) the date the issuer became a reporting issuer in the local jurisdiction of the purchaser of the securities that are the subject of the trade."

4.         The trade is not a control distribution.

5.         No unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade.

6.         No extraordinary commission or consideration is paid to a person or company in respect of the trade.

7.         If the selling security holder is an insider or officer of the issuer, the selling security holder has no reasonable grounds to believe that the issuer is in default of securities legislation.

2.6        Seasoning Period

(1)        Unless the conditions in subsection (3), (4) or (5) are satisfied, a trade that is specified by section 2.4 or other securities legislation to be subject to this section is a distribution.

(2)        The first trade of securities issued by a private company or private issuer made after the issuer has ceased to be a private company or private issuer is a distribution unless the conditions in subsection (4) are satisfied.

(3)        If the issuer of the securities was a qualifying issuer at the distribution date, the conditions are:

1.         The issuer is and has been a reporting issuer in a jurisdiction listed in Appendix B for the four months immediately preceding the trade.

2.         The trade is not a control distribution.

3.         No unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade.

4.         No extraordinary commission or consideration is paid to a person or company in respect of the trade.

5.         If the selling security holder is an insider or officer of the issuer, the selling security holder has no reasonable grounds to believe that the issuer is in default of securities legislation.

(4)        If the issuer of the securities was not a qualifying issuer at the distribution date, the conditions are:

1.         The issuer is and has been a reporting issuer for the 12 months immediately preceding the trade

(a)        in a jurisdiction listed in Appendix B, if the issuer is an electronic filer under NI 13-101; or

(b)        in the local jurisdiction of the purchaser of the securities that are the subject of the trade, if the issuer is not an electronic filer under NI 13-101.

2.         The trade is not a control distribution.

3.         No unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade.

4.         No extraordinary commission or consideration is paid to a person or company in respect of the trade.

5.         If the selling security holder is an insider or officer of the issuer, the selling security holder has no reasonable grounds to believe that the issuer is in default of securities legislation.

(5)        Despite subsection (4), if

(a)        the selling security holder acquired the securities under any of the provisions listed in Appendix F or a provision of securities legislation that specifies that the first trade of securities distributed to an employee, executive, consultant or administrator is subject to this section, and

(b)        the issuer of the securities became a qualifying issuer after the distribution date by filing a prospectus in a jurisdiction listed in Appendix B and listing or quoting a class of its equity securities on a qualified market,

the conditions are the issuer is and has been a reporting issuer in a jurisdiction listed in Appendix B for the four months immediately preceding the trade and the conditions in items (4)2., 3., 4. and 5.

2.7        Filing of Forms 45-102F1 and 45-102F2

(1)        If an issuer ceases to be a private company or private issuer on or after the effective date of this Instrument, the issuer shall file Form 45-102F1.

(2)        If

(a)        an issuer, or a selling security holder in the case of a control distribution, has distributed securities under any of the provisions listed in Appendix D or E or a provision of securities legislation that specifies that the first trade of the securities is subject to section 2.5 or 2.6,

(b)        the distribution date is on or after the effective date of this Instrument, and

(c)        the issuer was a qualifying issuer on the distribution date,

the issuer, or the selling security holder in the case of a control distribution, shall file Form 45-102F2 on or before the tenth day after the distribution date.

(3)        If

(a)        an issuer has distributed securities under any of the provisions listed in Appendix F or a provision of securities legislation that specifies that the first trade of securities distributed to an employee, executive, consultant or administrator is subject to section 2.6,

(b)        the issuer was not a qualifying issuer on the distribution date, and

(c)        the issuer becomes a qualifying issuer on or after the effective date of this Instrument by filing a prospectus in a jurisdiction listed in Appendix B and listing or quoting a class of its equity securities on a qualified market,

the issuer shall file Form 45-102F2.  

(4)        The issuer, or the selling security holder in the case of a control distribution, shall file Form 45-102F2 on SEDAR.

2.8        Exemption for a Trade by a Control Person

(1)        The prospectus requirement does not apply to a control distribution, or a distribution by a lender, pledgee, mortgagee or other encumbrancer for the purpose of liquidating a debt made in good faith by selling or offering for sale a security pledged, mortgaged or otherwise encumbered in good faith as collateral for the debt if the security was acquired by the lender, pledgee, mortgagee or other encumbrancer in a control distribution, if the conditions in subsections (2) or (3) are satisfied.

(2)        If the issuer of the securities was a qualifying issuer at the distribution date, the conditions are:

1.         The issuer is and has been a reporting issuer in a jurisdiction listed in Appendix B for the four months immediately preceding the trade.

2.         The selling security holder, or the lender, pledgee, mortgagee or other encumbrancer if the distribution is for the purpose of liquidating a debt, has held the securities for at least four months.

3.         No unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade.

4.         No extraordinary commission or consideration is paid to a person or company in respect of the trade.

5.         The selling security holder has no reasonable grounds to believe that the issuer is in default of securities legislation.

(3)        If the issuer of the securities was not a qualifying issuer at the distribution date, the conditions are:

1.         The issuer is and has been a reporting issuer for the 12 months immediately preceding the trade

(a)        in a jurisdiction listed in Appendix B, if the issuer is an electronic filer under NI 13-101; or

(b)        in the local jurisdiction of the purchaser of the securities that are the subject of the trade, if the issuer is not an electronic filer under NI 13-101.

2.         No unusual effort is made to prepare the market or to create a demand for the securities that are the subject of the trade.

3.         No extraordinary commission or consideration is paid to a person or company in respect of the trade.

4.         The selling security holder has no reasonable grounds to believe that the issuer is in default of securities legislation.

5.         The selling security holder, or the lender, pledgee, mortgagee or other encumbrancer if the distribution is for the purpose of liquidating a debt has held the securities for

(a)        at least 12 months, if the securities were distributed to the selling security holder under any of the provisions listed in Appendix D or a provision of securities legislation that specifies that the first trade of the securities is subject to section 2.5, and

(b)        in all other cases, at least six months.

(4)        The selling security holder, or the lender, pledgee, mortgagee or other encumbrancer if the distribution is for the purpose of liquidating a debt, under subsection (2) or (3) shall

(a)        sign and file Form 45-102F3 at the times set out in subsections (6) and (7), and

(b)        file, within three days after the completion of any trade, a report of the trade in the form required to be filed by a person or company in order to comply with the insider reporting requirements.

(5)        A person or company required to file Form 45-102F3 shall sign the form no earlier than one business day before its filing.

(6)        Subject to subsections (7) and (8), a person or company required to file Form 45-102F3 shall file the form

(a)        at least seven days and not more than 14 days before the first trade that forms part of the distribution,

(b)        on the 60th day after the date of filing under paragraph (a), and

(c)        thereafter at the end of each 28 day period.

(7)        Subject to subsection (8), if a person or company has filed a Form 23 Notice of Intention to Distribute Securities or equivalent form before the effective date of this Instrument, the person or company shall file Form 45-102F3

(a)        on the 60th day after the date of filing of the Form 23 or equivalent form, and thereafter at the end of each 28 day period, or

(b)        on the 28th day after the date of filing of the renewal Form 23 or equivalent form, and thereafter at the end of each 28 day period, if a renewal form has been filed before the effective date of this Instrument.

(8)        A person or company is not required to file Form 45-102F3 under paragraph 6(b), 6(c), 7(a) or 7(b) if

(a)        all of the securities specified under the original form have been sold, or

(b)        a notice has been filed in the jurisdictions in which a Form 45-102F3 would otherwise have been filed, which states that the securities specified under the original form, or the unsold part, are no longer for sale.

2.9        Determining Time Periods

(1)        In determining the period of time that an issuer has been a reporting issuer for the purposes of section 2.6 or 2.8, in the case of securities distributed under any of the provisions listed in Appendix G, the period of time that one of the amalgamating, merging or continuing issuers was a reporting issuer immediately before the amalgamation, merger or continuation may be included.

(2)        In determining the period of time that a selling security holder has held a security for the purposes of section 2.5 or 2.8, if the security was acquired by the selling security holder from an affiliate of the selling security holder, the period of time that the security had been held by the affiliate before the transfer to the selling security holder may be included.

(3)        In determining the period of time that a selling security holder has held an underlying security for the purposes of section 2.8, the period of time the selling security holder has held the convertible security, exchangeable security or multiple convertible security may be included.

(4)        In determining the period of time that a lender, pledgee, mortgagee or other encumbrancer has held a security under item 2.8(2)2. or 2.8(3)5., the period of time the security has been held by the debtor may be included.

(5)        In determining the period of time that a lender, pledgee, mortgagee or other encumbrancer has held an underlying security under item 2.8(2)2. or 2.8(3)5., the period of time the convertible security, exchangeable security or multiple convertible security has been held by the debtor may be included.

2.10      Exemption for a Trade in an Underlying Security if the Convertible Security, Exchangeable Security or Multiple Convertible Security is Qualified by a Prospectus - Section 2.6 does not apply to a trade in an underlying security issued or transferred under the terms of a convertible security, exchangeable security or multiple convertible security if

(a)        a receipt was obtained for a prospectus qualifying the distribution of the convertible security, exchangeable security or multiple convertible security;

(b)        the trade is not a control distribution; and

(c)        the issuer of the underlying security is a reporting issuer at the time of the trade.

2.11      Exemption for a Trade in a Security Acquired in a Take-over Bid or Issuer Bid - Section 2.6 does not apply to a trade of a security of an offeror acquired by the selling security holder upon the exchange by or for the account of the offeror with the security holders of the offeree issuer in connection with a take-over bid or issuer bid if

(a)        when the exemption from the prospectus requirement was relied upon, a securities exchange take-over bid circular or securities exchange issuer bid circular relating to the distribution of the securities was filed by the offeror on SEDAR;

(b)        the trade is not a control distribution; and

(c)        the offeror was a reporting issuer on the date securities of the offeree issuer are first taken up under the take-over bid or issuer bid.

2.12      Exemption for a Trade in an Underlying Security if the Convertible Security, Exchangeable Security or Multiple Convertible Security is Qualified by a Securities Exchange Take-over Bid Circular or Issuer Bid Circular - Section 2.6 does not apply to a trade in an underlying security issued or transferred under the terms of a convertible security, exchangeable security or multiple convertible security if

(a)        when the exemption from the prospectus requirement was relied upon, a securities exchange take-over bid circular or a securities exchange issuer bid circular relating to the distribution of the convertible security, exchangeable security or multiple convertible security was filed by the offeror on SEDAR;

(b)        the trade is not a control distribution;

(c)        the offeror was a reporting issuer on the date securities of the offeree issuer are first taken up under the take-over bid or issuer bid; and

(d)        the issuer of the underlying security is a reporting issuer at the time of the trade.

2.13      Trades by Underwriters - A trade by an underwriter of securities distributed under any of the provisions listed in Appendix H is a distribution.

2.14      First Trades in Securities of a Non-Reporting Issuer Distributed under a Prospectus Exemption

(1)        The prospectus requirement does not apply to the first trade of a security distributed under an exemption from the prospectus requirement if

(a)        the issuer of the security was not a reporting issuer in any jurisdiction at the distribution date;

(b)        at the distribution date, after giving effect to the issue of the security and any other securities of the same class or series that were issued at the same time as or as part of the same distribution as the security, residents of Canada

(i)         did not own directly or indirectly more than 10 percent of the outstanding securities of the class or series, and

(ii)         did not represent in number more than 10 percent of the total number of owners directly or indirectly of securities of the class or series; and

(c)        the trade is made

(i)         through an exchange, or a market, outside of Canada, or

(ii)         to a person or company outside of Canada;

(2)        The prospectus requirement does not apply to the first trade of an underlying security if

(a)        the convertible security, exchangeable security or multiple convertible security that, directly or indirectly, entitled or required the holder to acquire the underlying security was distributed under an exemption from the prospectus requirement;

(b)        the issuer of the underlying security was not a reporting issuer in any jurisdiction at the distribution date of the convertible security, exchangeable security or multiple convertible security;

(c)        the conditions in paragraph (1)(b) would have been satisfied for the underlying security at the time of the initial distribution of the convertible security, exchangeable security or multiple convertible security; and

(d)        the condition in paragraph (1)(c) is satisfied.

PART 3             CURRENT AIF FILING REQUIREMENTS

3.1        Current AIF

(1)        An issuer that has not filed an AIF

(a)        under NI 44-101, or

(b)        prior to the effective date of NI 44-101, under NP 47

may file a current AIF under this Instrument at any time.

(2)        An issuer filing a current AIF as defined in paragraphs (c), (d), (e), (f) or (g) of the definition of current AIF shall file a notice on SEDAR

(a)        advising that it has filed a current AIF, and

(b)        identifying the SEDAR project number under which the current AIF was filed.

PART 4             EXEMPTION

4.1        Exemption

(1)        The regulator or the securities regulatory authority may grant an exemption from this Instrument, in whole or in part, subject to such conditions or restrictions as may be imposed in the exemption.

(2)        Despite subsection (1), in Ontario, only the regulator may grant such an exemption.

PART 5             EFFECTIVE DATE

5.1        Effective Date - This Instrument comes into force on November 30, 2001.

APPENDIX A TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

CONTROL DISTRIBUTIONS

APPENDIX B TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

REPORTING ISSUER JURISDICTIONS

Alberta

British Columbia

Manitoba

Nova Scotia

Ontario

Quebec

Saskatchewan

APPENDIX C TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

NON-APPLICABLE RESALE PROVISIONS (Section 2.2)

APPENDIX D TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

RESTRICTED PERIOD TRADES (Section 2.3)

Sections 107(1)(a), (b), (c), (d), (l), (m), (p), (q), (t), (t.1), (u) and (z) of the Securities Act (Alberta), and section 107(1)(f)(iii) of the Securities Act (Alberta) if the right to purchase, convert or exchange was previously acquired under one of the above-listed exemptions under the Securities Act (Alberta)

Sections 74(2)(1) to (6), (16), (18), (19), (23) and (25) of the Securities Act (British Columbia)

Sections 128(a), (b), (c), (e), (f) and (h) of the Securities Rules (British Columbia)

Sections 74(2)(11)(ii) and 74(2)(13) of the Securities Act (British Columbia) if the security acquired by the selling security holder was initially acquired by a person or company under any of the sections of the Securities Act (British Columbia), or the Securities Rules (British Columbia) referred to in this Appendix

Section 74(2)(12) of the Securities Act (British Columbia) if the security acquired by the selling security holder under the realization on collateral was initially acquired by a person or company under any of the sections of the Securities Act (British Columbia) or the Securities Rules (British Columbia) referred to in this Appendix

Clauses 73(1)(a), (b), (c), (d), (l), (m), (p) and (q) of the Securities Act (Newfoundland) and subclause 73(1)(f)(iii) of the Securities Act (Newfoundland) if the right to purchase, convert or exchange was previously acquired under one of the above listed exemptions under the Securities Act (Newfoundland)

Paragraphs 3(a), (b), (c), (k), (l), (m), (r), (s), (t), (u), (w) and (z), and clause 3(e)(iii) of Blanket Order No. 1 of the Registrar of Securities (Northwest Territories)

Clauses 77(1)(a), (b), (c), (d), (l), (m), (p), (q), (u), (w), (y), (ab) and (ad) of the Securities Act (Nova Scotia), and subclause 77(1)(f)(iii) of the Securities Act (Nova Scotia) if the right to purchase, convert or exchange was previously acquired under one of the above listed exemptions under the Securities Act (Nova Scotia)

Paragraphs 3(a), (b), (c), (k), (l), (m), (r), (s), (t), (u), (w) and (z), and clause 3(e)(iii) of Blanket Order No.1 of the Registrar of Securities (Nunavut)

Clauses 72(1)(a), (b), (c), (d), (l), (m), (p) and (q) of the Securities Act (Ontario) and subclause 72(1)(f)(iii) of the Securities Act (Ontario) if the right to purchase, convert or exchange was previously acquired under one of the above-listed exemptions under the Securities Act (Ontario)

Clauses 81(1)(a), (b), (c), (d), (m), (n), (s), (t), (v), (w), (z), (bb) and (ee) of The Securities Act, 1988 (Saskatchewan)

Subclauses 81(1)(f)(iii) and (iv) of The Securities Act, 1988 (Saskatchewan) if the convertible security, exchangeable security or multiple convertible security was acquired under one of the exemptions of The Securities Act, 1988 (Saskatchewan) referred to in this Appendix

Clause 81(1)(e) of The Securities Act, 1988 (Saskatchewan) if the person or company from whom the securities were acquired obtained the securities under one of the exemptions of The Securities Act, 1988 (Saskatchewan) referred to in this Appendix

APPENDIX E TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

SEASONING PERIOD TRADES (Section 2.4)

Sections 107(1)(f) if not included in Appendix D of this Instrument, (i), (j), (j.1), (k), (k.1) prior to its repeal by section 5 of the Securities Amendment Act, 1989 (Alberta), and (n) of the Securities Act (Alberta)

Sections 74(2)(7) to (11), (13), (22) and (24) of the Securities Act (British Columbia)

Section 128(g) of the Securities Rules (British Columbia)

Section 74(2)(12) of the Securities Act (British Columbia), if the security acquired by the selling security holder under the realization on collateral was initially acquired by a person or company under any of the sections of the Securities Act (British Columbia) or the Securities Rules (British Columbia) referred to in this Appendix

Clauses 73(1)(f) if not included in Appendix D of this Instrument, (i), (j), (k) and (n) of the Securities Act (Newfoundland)

Clauses 3(e)(i) and (ii) and paragraphs 3(f), (g), (h), (i), (n), (x), (y) and (mm) of Blanket Order No. 1 of the Registrar of Securities (Northwest Territories)

Clause 77(1)(f) of the Securities Act (Nova Scotia) if not included in Appendix D of this Instrument, and clauses 77(1)(h), (i), (j), (k), (n), (v), (va), (ac), (ae) and (af) of the Securities Act (Nova Scotia), and clause 78(1)(a) of the Securities Act (Nova Scotia) as it relates to clause 41(2)(j) of the Securities Act (Nova Scotia) and Blanket Order No. 5A

Clauses 3(e)(i) and (ii) and paragraphs 3(f), (g), (h), (i), (n), (x), (y) and (mm) of Blanket Order No. 1 of the Registrar of Securities (Nunavut)

Clauses 72(1)(f), (i), (j), (k) and (n) of the Securities Act (Ontario), except for a trade made under subclause 72(1)(f)(iii) of the Securities Act (Ontario) that is

(i)         included in Appendix D of this Instrument,

(ii)         to an associated consultant or investor consultant as defined in Ontario Securities Commission Rule 45-503 Trades to Employees, Executives and Consultants, or

(iii)        contemplated by section 6.5 of Ontario Securities Commission Rule 45-501 Exempt Distributions

Clauses 81(1)(a.1), (e) if not included in Appendix D of this Instrument, (f) if not included in Appendix D of this Instrument, (f.1), (g), (h), (i), (i.1), (j), (k), (o), (cc) and (dd) of The Securities Act, 1988 (Saskatchewan)

APPENDIX F TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

EMPLOYEE TRADES (Section 2.6)

Sections 107(1)(f)(iii) (if the convertible security was distributed under section 107(1)(n)) and (n) of the Securities Act (Alberta)

Sections 74(2)(9) and 74(2)(11)(iii) (if the convertible security was distributed under section 74(2)(9) of the Securities Act (British Columbia) or under British Columbia Instrument 45-507 Trades to Employees, Executives and Consultants (other than to an associated consultant or investor consultant)) of the Securities Act (British Columbia)

Sections 73(1)(f)(iii) (if the convertible security was distributed under section 73(1)(n)) and (n) of the Securities Act (Newfoundland)

Paragraphs 3(e) (if the convertible security was distributed under paragraph 3(n)) and (n) of Blanket Order No. 1 of the Registrar of Securities (Northwest Territories)

Subclause 77(1)(f)(iii) (if the convertible security was distributed under clause 77(1)(n)) and clause 77(1)(n) of the Securities Act (Nova Scotia) and Blanket Order No. 5A

Paragraphs 3(e) (if the convertible security was distributed under paragraph 3(n)) and (n) of Blanket Order No. 1 of the Registrar of Securities (Nunavut)

Subclause 72(1)(f)(iii) (if the convertible security was distributed under clause 72(1)(n) of the Securities Act (Ontario) or under Ontario Securities Commission Rule 45-503 Trades to Employees, Executives and Consultants (other than to an associated consultant or investor consultant)) and clause 72(1)(n) of the Securities Act (Ontario)

Subclause 81(1)(f)(iii) (if the convertible security was distributed under clause 81(1)(o)) and clause 81(1)(o) of The Securities Act, 1988 (Saskatchewan)

APPENDIX G TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

AMALGAMATIONS OR MERGERS (Section 2.9)

Section 107(1)(i) of the Securities Act (Alberta)

Section 74(2)(8) of the Securities Act (British Columbia)

Clause 58(1)(b) of the Securities Act (Manitoba)

Clause 73(1)(i) of the Securities Act (Newfoundland)

Paragraph 3(g) of Blanket Order No.1 of the Registrar of Securities (Northwest Territories)

Clause 77(1)(i) of the Securities Act (Nova Scotia)

Paragraph 3(g) of Blanket Order No. 1 of the Registrar of Securities (Nunavut)

Clause 72(1)(i) of the Securities Act (Ontario) and section 2.8 of Rule 45-501 Exempt Distributions

Clause 2(3)(k) of the Securities Act (Prince Edward Island)

Clause 81(1)(i) of The Securities Act, 1988 (Saskatchewan)

APPENDIX H TO MULTILATERAL INSTRUMENT 45-102 RESALE OF SECURITIES

UNDERWRITERS (Section 2.13)

Section 107(1)(u.1) of the Securities Act (Alberta)

Section 74(2)(15) of the Securities Act (British Columbia)

Clause 73(1)(r) of the Securities Act (Newfoundland)

Paragraph 3(v) of Blanket Order No.1 of the Registrar of Securities (Northwest Territories)

Clause 77(1)(r) of the Securities Act (Nova Scotia)

Paragraph 3(v) of Blanket Order No. 1 of the Registrar of Securities (Nunavut)

Clause 72(1)(r) of the Securities Act (Ontario)

Clause 81(1)(u) of The Securities Act, 1988 (Saskatchewan)