EXHIBIT 4.11
CANADA – AB, ON
UNITED KINGDOM
CONTINENTAL EUROPE
OFFSHORE
SUBSCRIPTION AGREEMENT
FOR
COMMON SHARES
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TO:
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Gastar
Exploration Ltd. (the “Corporation”)
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AND TO:
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Westwind
Partners Inc. (the “Agent”)
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The undersigned (hereinafter referred to as the
“ Subscriber ”) hereby irrevocably subscribes
for and agrees to purchase the number of common shares of the
Corporation set forth below (the “ Common Shares
”), for the aggregate subscription price set forth below (the
“ Aggregate Subscription Price ”), representing
a subscription price of $
(U.S.) per Common Share, upon and subject to the terms and
conditions set forth in “Terms and Conditions of Subscription
for Common Shares of Gastar Exploration Ltd.” attached hereto
(together with this page and the attached Exhibits, the “
Subscription Agreement ”). In addition to this face
page, the Subscriber must also complete all applicable Exhibits
attached hereto.
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Number of Common Shares:
Aggregate Subscription Price
(U.S.): $
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(Name of Subscriber - please print)
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By:
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(Authorized Signature)
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Deliver the Common Shares as set forth
below:
(Name)
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(Official Capacity or Title - please
print)
(Please print name of individual whose signature
appears above if
different than the name of the subscriber
printed above.)
(Subscriber’s Address)
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(Account reference, if applicable)
(Contact Name)
(Address)
Register the Common Shares as
set forth below:
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(Telephone
Number)
(E-Mail Address)
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(Name)
(Account reference, if applicable)
(Address)
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ACCEPTANCE: The Corporation hereby accepts the subscription
as set forth above on the terms and conditions contained in this
Subscription Agreement.
Dated: June
, 2005
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GASTAR
EXPLORATION LTD.
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Subscription No:
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By:
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Title:
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This is the first page of an
agreement comprised of 12 pages (not including
Exhibits).
TERMS AND CONDITIONS OF
SUBSCRIPTION FOR
COMMON SHARES OF
GASTAR EXPLORATION
LTD.
Terms of the Offering
1. The Subscriber acknowledges (on its own
behalf and, if applicable, on behalf of each person on whose behalf
the Subscriber is contracting) that this subscription is subject to
rejection or allotment by the Corporation in whole or in
part.
2. The Subscriber acknowledges (on its own
behalf and, if applicable, on behalf of each person on whose behalf
the Subscriber is contracting) that:
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(a)
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the Common
Shares subscribed for by it hereunder form part of a larger
issuance and sale by the Corporation of up to __________ Common
Shares at an issue price of $_____ (U.S.) per Common Share on a
best efforts marketed offering basis through the Agent (the “
Offering ”); and
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(b)
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subject to
Section 10, the Offering is not subject to any minimum subscription
level, and therefore, any funds invested are available to the
Corporation and will be paid to the Corporation on the Closing
Date.
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Representations, Warranties and Covenants by
Subscriber
3. The Subscriber (on its own behalf and, if
applicable, on behalf of each person on whose behalf the Subscriber
is contracting) represents, warrants and covenants to the
Corporation and the Agent and their respective counsel (and
acknowledges that the Corporation and the Agent, and their
respective counsel, are relying thereon) that both at the date
hereof and at the Closing Time (as defined herein):
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(a)
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Subscriber (i)
has been advised that trading in the Common Shares will be subject
to various limitations and holding periods of up to two years under
the securities laws of the United States and four months under the
securities laws of Canada regardless of the residence of the
Subscriber; (ii) has been independently advised as to restrictions
with respect to trading in the Common Shares imposed by applicable
securities legislation in the jurisdiction in which it resides;
(iii) confirms that no representation has been made to it by or on
behalf of the Corporation with respect thereto; it acknowledges
that it is aware of the characteristics of the Common Shares, the
risks relating to an investment therein, and of the fact that it
may not be able to resell the Common Shares except in accordance
with limited exemptions under applicable securities legislation and
regulatory policy until expiry of the applicable restricted period
and compliance with the other requirements of applicable law;
and
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(b)
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other than
the documents listed on Exhibit 3 hereto, which have been
previously provided to, or obtained by, Subscriber (the
“Disclosure Documents”), Subscriber has not received or
been provided with, nor has it requested, nor does it have any need
to receive, any offering memorandum, any prospectus, sales or
advertising literature, or any other document describing or
purporting to describe the business and affairs of the Corporation
which has been prepared for delivery to, and review by, prospective
purchasers in order to assist it in making an investment decision
in respect of the Common Shares ; and
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(c)
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Subscriber has
not become aware of any advertisement in printed media of general
and regular paid circulation (or other printed public media),
radio, television or telecommunications or other form of
advertisement (including electronic display) with respect to the
distribution of the Common Shares; and
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(d)
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Subscriber is,
and at all times since the Subscriber received a copy of the
Disclosure Documents, was, a resident of and was offered the Common
Shares in the jurisdiction set forth as the
“Subscriber’s Address” under its signature on the
face page of this Subscription Agreement; if the province of his or
her principal residence, or the province of its principal office or
principal place of business, changes, or his, her or its address
changes in any other respect, before the consummation of his, her
or its purchase of the Common Shares subscribed for under this
Subscription Agreement, he, she or it will promptly notify the
Corporation, and if the change in the province or his or her
principal residence, or its principal office or principal place of
business, is to a province in which an offer and/or sale of the
Common Shares is prohibited by applicable law, any offer to sell
Common Shares to him, her or it made before notification of the
change in the province of his or her principal residence, or its
principal office or principal place of business, shall be deemed
retracted and he, she or it shall cease to be entitled to purchase
Common Shares pursuant to such offer; and
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(e)
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unless it is
purchasing under paragraph 3(f), it is purchasing the Common Shares
as principal for its own account, not for the benefit of any other
person, for investment only and not with a view to the resale or
distribution of all or any of the Common Shares, and it fully
complies with one or more of the criteria set forth
below:
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(i)
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it is resident
in or otherwise subject to applicable securities laws of
Alberta and it is an “accredited investor”, as
such term is defined in Multilateral Instrument 45-103 -
“Capital Raising Exemptions” of the Canadian Securities
Administrators adopted under the Securities Act (Alberta)
and has concurrently executed and delivered a Representation Letter
in the form attached as Exhibit 1 to this Subscription
Agreement and has initialled in Appendix ”A” thereto
indicating that the Subscriber satisfies one of the categories of
“accredited investor” set forth in such definition;
or
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(ii)
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it is resident
in or otherwise subject to applicable securities laws of
Ontario , it is an “accredited investor” as
defined in Ontario Securities Commission Rule 45-501 entitled
“Exempt Distributions” promulgated under the
Securities Act (Ontario) and has concurrently executed and
delivered a Representation Letter in the form attached as
Exhibit 2 to this Subscription Agreement and has initialled
in Appendix ”A” thereto indicating that the Subscriber
satisfies one of the categories of “accredited
investor” set forth in such definition; or
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(iii)
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it is a
resident of the United Kingdom and is a person of a kind
described in Article 19 of the Financial Services and Markets
Act 2000 (Financial Promotion ) Order 2001 and is a person
whose ordinary activities involve it in acquiring, holding,
managing or disposing of investments (as principal or agent) for
the purpose of its business; and
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(f)
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if it is not
purchasing as a principal, it is duly authorized to enter into this
Subscription Agreement and to execute and deliver all documentation
in connection with the purchase on behalf of each beneficial
purchaser, each of whom is purchasing as principal for its own
account, not for the benefit of any other person, for investment
only and not with a view to the resale or distribution of all or
any of the Common Shares, it acknowledges that the Corporation is
required by law to disclose to certain regulatory authorities the
identity of each beneficial purchaser of Common Shares for whom it
may be acting, and it and each beneficial purchaser is resident in
the jurisdiction set out as the “Subscriber’s
Address”, and:
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(i)
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if it is
resident in or otherwise subject to applicable securities laws of
Alberta , it is an “ accredited investor
” as defined in paragraphs (p) or (q) of the definition of
“accredited investor” in Multilateral Instrument 45-103
(which definition is reproduced in the Appendix to Exhibit 1
attached hereto); provided, however that it is not a trust company
or trust corporation registered under the laws of Prince Edward
Island that is not registered under the Trust and Loan Companies
Act (Canada) or under comparable legislation in another
jurisdiction of Canada and has concurrently executed and delivered
a Representation Letter in the form attached hereto as Exhibit
1 and has initialled Appendix ”A” thereto
indicating that the Subscriber satisfies one of the categories of
“accredited investor” set forth in paragraphs (p) or
(q) of Appendix ”A” thereto; or
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(ii)
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subject to
securities laws applicable to the Subscriber, if it is acting as
agent for one or more disclosed principals, each of such principals
is purchasing as principal for its own account, not for the benefit
of any other person, for investment only, and not with a view to
the resale or distribution of all or any of the Common Shares, and
each of such principals complies with subparagraphs (i), (ii) or
(iii) of paragraph 3(e) hereof as are applicable to it by virtue of
its place of residence or by virtue of the securities laws of such
place being applicable to the Subscriber; and
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(g)
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if it is a
resident of any jurisdiction referred to in the preceding
paragraphs 3(e) or 3(f) but not purchasing thereunder, it is
purchasing pursuant to an exemption from prospectus and
registration requirements (particulars of which are enclosed
herewith) available to it under applicable securities legislation
and shall deliver to the Corporation and the Agent such further
particulars of the exemption(s) and the Subscriber’s
qualifications thereunder as the Corporation or the Agent or their
respective counsel may request; and
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(h)
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if it is a
resident of or otherwise subject to applicable securities laws of
any jurisdiction not referred to in the preceding paragraphs
3(e) or 3(f) it, or any beneficial purchaser for whom it is
acting, complies with the requirements of all applicable securities
legislation in the jurisdiction of its residence and will provide
such evidence of compliance with all such matters as the
Corporation or the Agent or their respective counsel may request;
and
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(i)
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Subscriber
acknowledges that:
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(i)
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no securities
commission or similar regulatory authority has reviewed or passed
on the merits of the Common Shares or the adequacy or accuracy of
the information set forth in any document provided to Subscriber;
and
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(ii)
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there is no
government or other insurance covering the Common Shares;
and
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(iii)
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the Common
Shares are a speculative investment that involves a high degree of
risk of loss of entire investment; and
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(iv)
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there are
substantial restrictions on the Subscriber’s ability to
resell the Common Shares and it is the responsibility of the
Subscriber to find out what those restrictions are and to comply
with them before selling the Common Shares; and
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(v)
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the Corporation
has advised the Subscriber that the Corporation is relying on an
exemption from the requirements to provide the Subscriber with a
prospectus and to sell securities through a person or company
registered to sell securities under the Securities Act
(Alberta) and other applicable securities laws and, as a
consequence of acquiring Common Shares pursuant to this exemption,
certain protections, rights and remedies provided by the
Securities Act (Alberta) and other applicable securities
laws, including statutory rights of rescission or damages, will not
be available to the Subscriber; and
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(vi)
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the Common
Shares shall not be resold until after the expiry of the applicable
“hold” or “restricted” period attaching to
such Common Shares under United States and Canadian laws, unless
sold pursuant to an exemption under all applicable securities laws,
and the certificates evidencing the Common Shares which it shall
receive will bear a legend referring to such restrictions on resale
and neither the Corporation nor any transfer agent of the
Corporation will register any transfers of such Common Shares not
made in compliance with such restrictions on resale; and
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(vii)
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the Common
Shares have not been approved or disapproved by the United States
Securities Exchange Commission (the “ SEC ”) or
any state securities commission nor has the SEC or any state
securities commission passed upon the accuracy or adequacy of any
representations of the Corporation; any representation to the
contrary is a criminal offense; and
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(j)
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Subscriber is
purchasing the Common Shares directly from the Corporation pursuant
to one of the prospectus exemptions described in paragraphs 3(e),
3(f), 3(g) or 3(h), and:
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(i)
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Subscriber is
authorized to consummate the purchase of the Common Shares,
and
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(ii)
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Subscriber
understands and acknowledges that the Common Shares have not been
registered under the U.S. Securities Act of 1933 , as
amended (the “ 1933 Act ”), or any applicable
state securities laws. Accordingly, the Common Shares will be
“restricted securities” within the meaning of Rule 144
under the 1933 Act, and therefore may not be offered or sold by it,
directly or indirectly, in the United States without registration
under United States federal and, if not preempted, state securities
laws, except in compliance with paragraph 3(j)(v) and, the
Subscriber understands that the certificates representing the
Common Shares issued to it will contain a legend in respect of such
restrictions which is set out in paragraph 3(j)(vi) below;
and
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(iii)
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Subscriber has
received, for its information only, a copy of this Subscription
Agreement and a copy of each of the Disclosure Documents and has
been offered the opportunity to ask questions and receive answers
concerning the terms and conditions of the Offering and to obtain
any information the Subscriber deems necessary to verify the
accuracy of any information regarding the Corporation; and has had
access to such additional information, if any, concerning the
Corporation as it has considered necessary in connection with its
investment decision to invest in the Common Shares; and
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(iv)
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Subscriber has
a pre-existing personal or business relationship with the
Corporation or one of its officers, directors or controlling
persons, or by reason of the Subscriber’s business or
financial experience, that it has such knowledge and experience in
financial and business matters as to be capable of evaluating the
merits and risks of its investment in the Common Shares and is able
to bear the economic risks of such investment and can be reasonably
assumed to have the capacity to protect his, her or its own
interests in connection with the transaction contemplated by this
Subscription Agreement; and
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(v)
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Subscriber
agrees that if it decides to offer, sell or otherwise transfer any
of the Common Shares, it will not offer, sell or otherwise transfer
any of such Common Shares, directly or indirectly, except: (A) to
the Corporation, (B) outside the United States in accordance with
Rule 903 or 904 of Regulation S under the 1933 Act, and in
compliance with applicable local laws and regulations, (C) inside
or outside the United States after one year pursuant to the
exemption from registration under the 1933 Act provided by Rule 144
thereunder, (D) to a person it reasonably believes is a
“qualified institutional buyer” (as defined in Rule
144A under the 1933 Act) purchasing for its own account or for the
account of a qualified institutional buyer in a transaction meeting
the requirements of Rule 144A, (E) inside the United States, in any
other transaction exempt from registration under the 1933 Act and,
in any event, in compliance with any applicable state securities
laws of the United States, provided that prior to any transfer
pursuant to this clause (E), the Corporation may require a legal
opinion reasonably satisfactory to the Corporation that such
transfer is exempt from registration under the 1933 Act and
applicable state securities laws, and, in each instance, in
compliance with any applicable state securities laws of the United
States or (F) pursuant to a registration statement effective under
the 1933 Act and covering such offer, sale and transfer;
and
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(vi)
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Subscriber
understands that upon the original issuance thereof, and until such
time as the same is no longer required under applicable
requirements of the 1933 Act or state securities laws, the
certificates representing the Common Shares, and all certificates
issued in exchange therefor or in substitution thereof, shall bear
on the face of such certificates the following legend:
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THE SECURITIES REPRESENTED HEREBY
HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES,
AGREES FOR THE BENEFIT OF GASTAR EXPLORATION LTD. THAT SUCH
SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A)
TO GASTAR EXPLORATION LTD., (B) OUTSIDE THE UNITED STATES IN
ACCORDANCE WITH RULE 903 OR 904 OF REGULATION S UNDER THE U.S.
SECURITIES ACT, (C) INSIDE OR OUTSIDE THE UNITED STATES, PURSUANT
TO THE EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER, (D) TO A PERSON THE HOLDER
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES
ACT) PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, OR (E) PURSUANT TO A REGISTRATION
STATEMENT EFFECTIVE UNDER THE U.S. SECURITIES ACT AND COVERING SUCH
OFFER, SALE OR TRANSFER (IT BEING UNDERSTOOD THAT THE ISSUER SHALL
BE UNDER NO OBLIGATION TO FILE SUCH REGISTRATION STATEMENT).
HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY
MAY NOT BE CONDUCTED EXCEPT IN COMPLIANCE WITH THE U.S. SECURITIES
ACT;
provided , that if Common Shares are being sold in
compliance with the requirements of Rule 144 under the 1933 Act or
pursuant to an effective registration statement under the 1933 Act,
the above legend may be removed by delivery of (i) an opinion of
counsel of recognized standing reasonably satisfactory to the
Corporation to the effect that such Common Shares held by it are
being sold pursuant to Rule 144 of the 1933 Act or pursuant to an
effective registration statement under the 1933 Act, as the case
may be, and (ii) such other documentation reasonably requested by
the Corporation or its transfer agent;
provided , further , that if (i) it is not an
“affiliate” (as defined in Rule 405 under the 1933 Act)
of the Corporation, (ii) it has not been such an affiliate in the
preceding three months, and (iii) at least two years (or such
shorter period as may be permitted under Rule 144(k) or any
successor rule) have elapsed since the later of the date the Common
Shares were acquired from the Corporation or from an affiliate of
the Corporation, then the above legend may be removed from any
certificates representing such Common Shares held by it by delivery
to the Corporation of an opinion of counsel of recognized standing
reasonably satisfactory to the Corporation, to the effect that any
such Common Shares held by it may be sold pursuant to Rule 144(k)
(or any successor rule) of the 1933 Act and such legend is no
longer required under applicable requirements of the 1933 Act or
state securities laws;
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and the Corporation shall use its
reasonable best efforts to cause the registrar and transfer agent
of the Corporation to remove the foregoing U.S. legend within three
business days (excluding weekends and holidays) of receipt of the
foregoing, as applicable; and
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(vii)
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each
certificate representing the Common Shares will carry a legend, and
any ownership statement issued under a direct registration system
or other electronic book-entry system acceptable to the applicable
Canadian securities regulator will bear a legend restriction
notation, stating “Unless permitted under securities
legislation, the holder of this security must not trade the
security before [insert the date that is 4 months and a day
after the Closing Date.] ”; and
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(viii)
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Subscriber is
acquiring the Common Shares as principal for its own account for
investment, and not with a view to any resale, distribution or
other disposition of the Common Shares, in violation of United
States securities laws; the Subscriber has no contract,
undertaking, agreement or arrangement with any person to sell,
transfer, assign or pledge to such person or anyone else all or any
part of the Common Shares for which the Subscriber hereby
subscribes, and the Subscriber has no plans or intentions to enter
into any such contract, undertaking or arrangement; and
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(ix)
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Subscriber has
read, is fully familiar with, and completely understands, the
Disclosure Documents and any other documents and information which
he, she or it deems material to making an investment decision with
respect to the Common Shares; and
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(x)
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the financial
condition of the Subscriber is such that he, she or it has no need
for liquidity with respect to his, her or its investment in the
Common Shares to satisfy any existing or contemplated undertaking
or indebtedness, and he, she or it has no need for a current return
on his, her or its investment in the Common Shares; he, she or it
is able to bear the economic risk of his, her or its investment in
the Common Shares for an indefinite period of time, including the
risk of losing all of his, her or its investment, and the loss of
his, her or its entire investment in the Common Shares would not
materially adversely affect the standard of living of the
Subscriber or his or her family; and
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(xi)
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all information
that the Subscriber has provided in this Subscription Agreement
concerning the Subscriber and his, her or its financial condition
is correct and complete as of the date set forth below, and if
there should be any material change in such information prior to
the acceptance of the Subscriber’s subscription for the
Common Shares subscribed for under this Subscription Agreement, the
Subscriber will immediately so notify the Corporation;
and
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(k)
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Subscriber
understands and acknowledges that the certificates representing the
Common Shares will also bear a legend that the securities cannot be
traded through the facilities of stock exchanges in Canada since
the certificate is not freely transferable and consequently is not
“good delivery” in transactions on such stock exchanges
unless on or prior to such trade, arrangements have been made to
remove the legends as provided in the provisos of paragraph
3(j)(vi) hereof, and it acknowledges that such stock exchanges
would deem the selling security holder to be responsible for any
loss incurred on a sale made by such security holder in such
securities; and
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(l)
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Subscriber
understands and acknowledges that the Corporation has the right to
instruct the transfer agent for the Common Shares not to record a
transfer by any person in the United States without first being
notified by the Corporation that it is satisfied that such transfer
is exempt from or not subject to registration under the 1933 Act
and any applicable state securities laws; and
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(m)
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Subscriber
acknowledges that it has not purchased the Common Shares as a
result of any general solicitation or general advertising, as such
terms are defined in Regulation D under the 1933 Act, including,
without limitation, advertisements, articles, notices or other
communications published in any newspaper, magazine or similar
media or broadcast over radio or television, or any seminar or
meeting whose attendees have been invited by general solicitation
or general advertising; and
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(n)
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except as
provided herein, no person has made to the Subscriber any written
or oral representation:
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(i)
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that any person
will resell or repurchase the Common Shares;
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(ii)
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that any person
will refund the purchase price of the Common Shares; or
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(iii)
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as to the
future price or value of the Common Shares; and
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(o)
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Subscriber
understands and acknowledges that the Corporation (i) is not
presently, nor is the Corporation under any obligation to become, a
“foreign private issuer”, as such term is defined in
Regulation S of the 1933 Act, and (ii) because the Corporation is
not a foreign private issuer, the 1933 Act restricts the offer,
sale or transfer of the Common Shares both within and outside of
the United States, as set forth in this Subscription Agreement;
and
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(p)
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if a
corporation, partnership, unincorporated association or other
entity, Subscriber has the legal capacity to enter into and be
bound by this Subscription Agreement and further certifies that all
necessary approvals of directors, shareholders or otherwise have
been given and obtained; and
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(q)
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this
Subscription Agreement has been duly and validly authorized,
executed and delivered by and constitutes a legal, valid, binding
and enforceable obligation of the Subscriber; and
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(r)
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in the case of
a subscription by Subscriber for Common Shares acting as agent for
a disclosed principal, it is duly authorized to execute and deliver
this Subscription Agreement and all other necessary documentation
in connection with such subscription on behalf of such principal
and this Subscription Agreement has been duly authorized, executed
and delivered by or on behalf of, and constitutes a legal, valid,
binding and enforceable agreement of, such principal;
and
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(s)
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except for the
representations and warranties made by the Corporation in this
Agreement and the Subscriber’s review of the Disclosure
Documents, Subscriber has relied solely upon publicly available
information relating to the Corporation and not upon any verbal or
written representation as to fact or otherwise made by or on behalf
of the Corporation; and
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(t)
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Subscriber
acknowledges that the Corporation’s counsel and the
Agent’s counsel are acting as counsel to the Corporation and
the Agent, respectively, and not as counsel to the Subscriber;
and
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(u)
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Subscriber
understands, acknowledges and is aware that the Common Shares are
being offered for sale only on a “private placement”
basis and that the sale and delivery of the Common Shares is
conditional upon such sale being exempt from the requirements under
applicable securities legislation as to the filing of a prospectus
or delivery of an offering memorandum or upon the issuance of such
orders, consents or approvals as may be required to permit such
sale without the filing of a prospectus or delivering an offering
memorandum and, as a consequence (i) it is restricted from using
most of the civil remedies available under securities legislation;
(ii) it may not receive information that would otherwise be
required to be provided to it under securities legislation; and
(iii) the Corporation is relieved from certain obligations that
would otherwise apply under securities legislation; and
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(v)
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if required by
applicable securities legislation, regulations, rules, policies or
orders or by any securities commission, stock exchange or other
regulatory authority, the Subscriber will execute, deliver, file
and otherwise assist the Corporation in filing, such reports,
undertakings and other documents with respect to the issue of the
Common Shares, including, without limitation: (i) in the case of an
accredited investor resident in or otherwise subject to
applicable securities laws of Alberta a Representation Letter
in the form attached as Exhibit 1 ; and (ii) in the case of
an accredited investor resident in or otherwise subject to
applicable securities laws of Ontario , a Representation Letter
in the form attached as Exhibit 2 ; and
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(w)
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the acquisition
of the Common Shares hereunder by the Subscriber will not result in
the Subscriber becoming a “control person”, as defined
under applicable securities laws; and
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(x)
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the entering
into of this Subscription Agreement and the completion of the
transactions contemplated hereby do not and will not result in a
violation of any of the terms or provisions of any law applicable
to the Subscriber, or if the Subscriber is not a natural person,
any of the Subscriber’s constating documents, or any
agreement to which the Subscriber is a party or by which it is
bound; and
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(y)
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the Subscriber
acknowledges that it has been encouraged to obtain independent
legal, income tax and investment advice with respect to its
subscription for the Common Shares and accordingly, has had the
opportunity to acquire an understanding of the meanings of all
terms contained herein relevant to the Subscriber for purposes of
giving representations, warranties and covenants under this
Subscription Agreement.
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7
Representations and Warranties of the
Corporation
4. The Corporation represents and warrants, as
of the date of this Subscription Agreement and the Closing Date, to
the Subscriber, that:
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(a)
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Each of the
Corporation and its subsidiaries is a corporation, limited
liability company, partnership or other entity and is duly
organized and validly existing in good standing under the laws of
the jurisdiction in which it is organized, and is duly qualified to
do business as a foreign corporation in all jurisdictions in which
the failure to be so qualified would materially and adversely
affect the business or financial condition, properties or
operations of the Corporation. Each of the Corporation and its
subsidiaries has all requisite corporate, partnership, limited
liability company or other organizational power and authority (i)
to own and lease the properties and assets it currently owns and
leases (if any) and it contemplates owning and leasing and (ii) to
conduct its activities as such activities (if any) are currently
conducted and as currently contemplated to be conducted.
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(b)
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As of the date
of this Subscription Agreement, the authorized capital of the
Corporation consists of an unlimited number of Common Shares and
preferred shares, of which as of the date of this Subscription
Agreement 119,326,298 Common Shares and no preferred shares are
issued and outstanding, 16,934,600 Common Shares are reserved for
issuance pursuant to the Corporation’s share option,
restricted shares and share purchase plans; and 11,846,603 Common
Shares are issuable and reserved for issuance pursuant to
securities exercisable or exchangeable for, or convertible into,
Common Shares. All of such outstanding or issuable shares have
been, or upon issuance will be, validly issued and are, or upon
issuance will be, fully paid and nonassessable.
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(c)
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The Corporation
has duly authorized the issuance and sale of the Common Shares in
accordance with the terms of this Agreement. This Agreement
constitutes a valid and legally binding obligation of the
Corporation, enforceable in accordance with its terms, except (i)
as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited
by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies, and (iii) to the
extent the indemnification provisions contained herein may be
limited by applicable federal or state securities laws.
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(d)
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The Common
Shares, when issued and paid for in accordance with this
Subscription Agreement, will represent validly authorized, duly
issued and fully paid and nonassessable Common Shares of the
Corporation, and the issuance thereof will not conflict with the
organizational documents of the Corporation.
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(e)
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The execution
and delivery of this Agreement, the fulfillment of the terms set
forth herein and the consummation of the transactions contemplated
hereby will not conflict with, or constitute a breach of or default
under, any agreement, indenture or instrument by which the
Corporation is bound or any law, administrative rule, regulation or
decree of any court or any governmental body or administrative
agency applicable to the Corporation.
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(f)
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As of the date
of this Subscription Agreement, the Disclosure Documents do not
contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or nec
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