Polar Hedge Enhanced Income Trust - MRRS Decision

Headnote

Mutual Reliance Review System for Exemptive Relief Applications - issuer deemed to be no longer a reporting issuer under securities legislation (for MRRS Decisions).

Applicable Ontario Statutory Provisions

Securities Act, R.S.O. 1990, c. S.5, as am., s. 83.

IN THE MATTER OF

THE SECURITIES LEGISLATION OF

ALBERTA, SASKATCHEWAN, ONTARIO,

QUÉBEC, NOVA SCOTIA AND NEWFOUNDLAND

AND LABRADOR

AND

IN THE MATTER OF

THE MUTUAL RELIANCE REVIEW SYSTEM

FOR EXEMPTIVE RELIEF APPLICATIONS

AND

IN THE MATTER OF

POLAR HEDGE ENHANCED INCOME TRUST

MRRS DECISION DOCUMENT

1. WHEREAS the local securities regulatory authority or regulator (the "Decision Maker") in each of Alberta, Saskatchewan, Ontario, Québec, Nova Scotia and Newfoundland and Labrador (the "Jurisdictions") has received an application from Polar Hedge Enhanced Income Trust ("Polar") for a decision under the securities legislation of the Jurisdictions (the "Legislation") deeming Polar to have ceased to be a reporting issuer in the Jurisdictions;

2. AND WHEREAS under the Mutual Reliance Review System for Exemptive Relief Applications (the "System"), the Alberta Securities Commission is the principal regulator for this application;

3. AND WHEREAS unless otherwise defined, the terms herein have the meaning set out in National Instrument 14-101 Definitions;

4. AND WHEREAS Polar has represented to the Decision Makers that:

4.1 Polar is a closed-end investment trust established under the laws of Ontario pursuant to a Declaration of Trust dated April 18, 1997, as amended (the "Trust Indenture"),

4.2 Polar is authorized to issue an unlimited number of trust units ("Trust Units") pursuant to its Trust Indenture, of which there are currently 761,218 Trust Units issued and outstanding;

4.3 Polar is a reporting issuer in each of the Jurisdictions;

4.4 Other than failing to file financial statements subsequent to the closing of the offer to purchase described herein for the third quarter ending September 30, 2003, Polar is not in default of any of its obligations as a reporting issuer under the Legislation;

4.5 Pursuant to an offer to purchase dated August 19, 2003, as amended on September 24, 2003 and a subsequent compulsory acquisition under the provisions of the Trust Indenture, Genesis Land Development Corp. ("Genesis") became the holder of all of the issued and outstanding Trust Units;

4.6 Genesis is the sole registered security holder of Polar and there are no securities, including public debt obligations, currently issued and outstanding other than the Trust Units;

4.7 The Toronto Stock Exchange has effective October 15, 2003 delisted the Trust Units from trading and there are no securities of Polar listed on any stock exchange or traded over the counter in Canada or elsewhere; and

4.8 Polar does not intend to seek public financing by way of an offering of securities.

5. AND WHEREAS under the System, this MRRS Decision Document evidences the decision of each Decision Maker (collectively, the "Decision");

6. AND WHEREAS each of the Decision Makers is satisfied that the test contained in the Legislation that provides the Decision Maker with the jurisdiction to make the Decision has been met;

7. THE DECISION of the Decision Makers under the Legislation is that Polar is deemed to no longer be a reporting issuer under the Legislation.

March 24, 2004.

"Patricia M. Johnston"