Document:

exv10w1

 

Exhibit 10.1

AGENCY AGREEMENT

September 9 2005

GeoGlobal Resources Inc.

200, 630-4th Avenue S.W.

Calgary AB T2P 0J9

Attention: Allan J. Kent, Executive Vice President and CFO

Dear Sirs/Mesdames:

     Jones, Gable & Company Limited (the “Agent”) understands that GeoGlobal Resources Inc. (the
“Corporation”) proposes to issue and offer for sale, by way of private placement, up to 3,252,400
units of the Corporation (the “Units”) at a price of U.S.$6.50 per Unit for aggregate gross
proceeds of up to U.S.$21,140,600 (the “Offering”). Each Unit is to be comprised of one (1) share
of common stock of the Corporation (each a “Common Share”) and one-half (1/2) of one Common Share
purchase warrant (each a “Warrant”), each whole Warrant entitling the holder thereof to purchase
one Common Share (each a “Warrant Share”) at an exercise price of U.S.$9.00 for a period of (the
“Warrant Term”) two years following the Closing Date (as hereinafter defined); provided that if (i)
the trading price of the Common Shares on the American Stock Exchange (“AMEX”) or on any other
exchange or automated quotation system on which the Common Shares are listed or quoted for trading
is U.S.$12.00 or more for twenty consecutive trading days, (ii) the Registration Statement (as
hereinafter defined) has been declared effective by the United States Securities and Exchange
Commission (the “SEC”), and (iii) the hold period applicable to the Underlying Shares (as
hereinafter defined) pursuant to the securities laws of the local jurisdictions in Canada where
purchasers of Units reside has expired (the occurrence of all such events, the “Acceleration
Event”), then the Warrant Term shall expire at 5:00 p.m. (Toronto time) on the date which is the
30th day following the date of issuance by the Corporation of a news release announcing
the change to the Warrant Term (or if such 30th day is not a Business Day, then on the
first Business Day after such 30th day).

     The Agent further understands that, as part of the Offering, each purchaser of Units shall
also receive one non-transferable right for each Unit purchased (all such rights to be issued under
the Offering, together with all of the Units, the “Offered Securities”), each such right entitling
the purchaser to receive, for nominal consideration, an additional 0.10 of one Unit in the event
that the Registration Statement is not filed with the SEC on or before 5:00 p.m. (Toronto time) on
the date that is 60 days following the Closing Date (the “Registration Filing Deadline”).

     The Agent hereby offers to act, and upon its acceptance hereof, the Corporation hereby
appoints the Agent, as the Corporation’s exclusive agent to offer the Offered Securities for sale,
on a best efforts basis, upon and subject to the terms and conditions set forth herein. The
Corporation understands that the Agent is not obliged under any circumstances to purchase any of
the Offered Securities.

 

 

     The Agent may form and manage a group of Canadian investment dealers to offer the Offered
Securities for sale. Subject to the terms hereof, the Corporation understands that no such
investment dealer is obliged under any circumstances to purchase any of the Offered Securities.
The Agent may determine the remuneration payable to such investment dealers appointed by it,
provided that any fee charged by such investment dealers shall not exceed the Agent’s Fee (as
hereinafter defined) and shall be payable by the Agent.

     In consideration of the services to be rendered to the Corporation by the Agent pursuant to
this agreement, at the Closing Time (as hereinafter defined), the Corporation shall pay to the
Agent a fee equal to 6% of the gross proceeds from the Offering (the “Agent’s Fee”) and shall issue
to the Agent compensation options (the “Compensation Options”) entitling the Agent to purchase up
to that number of Units that is equal to 6% of the number of Units sold pursuant to the Offering,
subject to adjustment as described below (the “Compensation Units”), at an exercise price of
U.S.$6.50 per Compensation Unit at any time prior to 5:00 p.m. (Toronto time) on the date which is
two years following the Closing Date. Each Compensation Unit shall be comprised of one Common
Share and one-half (1/2) of one Warrant, each whole Warrant (also, a “Warrant”) entitling the
holder thereof to purchase one Common Share (also, a “Warrant Share”) at an exercise price of
U.S.$9.00 and otherwise on the same terms and subject to the same conditions as the Warrants
comprising the Units (including as to the acceleration of the Warrant Term). At the Closing Time,
the Agent shall also receive one non-transferable right (each, a “Compensation Right”) for each
Compensation Option issued to the Agent, which shall entitle the Agent to receive, for nominal
consideration, an additional 0.10 of one Compensation Unit for each Compensation Unit purchased by
the Agent (whether purchased before or after the Registration Filing Deadline), in the event that
the Registration Statement is not filed by the Registration Filing Deadline. The Compensation
Options and the Compensation Rights will be evidenced by one or more certificates (the
“Compensation Option Certificates”).

DEFINITIONS

     In this agreement, in addition to the terms defined above or elsewhere in this agreement, and
unless otherwise indicated or the context manifestly requires otherwise, the following terms shall
have the following meanings:

	 	 	 	“agreement” means the agreement resulting from the acceptance hereof by the Corporation;
	 
	 	 	 	“Agreements” means this agreement, the Subscription Agreements, the Registration Rights
Agreement, the Warrant Certificates, the Right Certificates and the Compensation Option
Certificates;
	 
	 	 	 	“Business Day” means a day on which chartered banks are normally open for business in
Toronto, Ontario, excluding Saturday, Sunday or a statutory or civic holiday;
	 
	 	 	 	“Canadian Securities Laws” means all applicable securities laws in each of the Offering
Provinces and the respective regulations made thereunder, together with applicable published
policy statements, rules and orders of the securities regulatory authorities in such
province;

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	 	 	 	“Closing” means the completion of the issue and sale by the Corporation of the Offered
Securities and the purchase by the Purchasers of the Offered Securities pursuant to this
agreement, which may, at the option of the Agent, occur on one or more separate occasions,
each of which occasion shall be a “Closing” for the purposes of this agreement;
	 
	 	 	 	“Closing Date” means September 9, 2005 or such other date or dates as the Corporation and
the Agent may agree upon in writing;
	 
	 	 	 	“Closing Time” means 10:00 a.m. (Toronto time) on the Closing Date or such other time on the
Closing Date as the Corporation and the Agent may agree;
	 
	 	 	 	“Corporation’s Information Record” means all press releases, material change reports, annual
and interim financial statements and related management’s discussion and analysis, technical
reports, annual information forms, proxy circulars and other documents which have been filed
by or on behalf of the Corporation with the Canadian securities regulatory authorities and
the SEC;
	 
	 	 	 	“Financial Statements” means the audited consolidated balance sheets of the Corporation as
at December 31, 2004, December 31, 2003 and December 31, 2002, the audited consolidated
statements of operations, changes in stockholders’ equity and cash flows of the Corporation
for the years ended December 31, 2004, December 31, 2003 and December 31, 2002, the
unaudited consolidated balance sheets of the Corporation as at June 30, 2005 and June 30,
2004, and the unaudited consolidated statements of operations, changes in stockholders’
equity and cash flows of the Corporation for the six months ended June 30, 2005 and June 30,
2004, together with the notes thereto;
	 
	 	 	 	“GeoGlobal Barbados” means GeoGlobal Resources (Barbados) Inc., a corporation constituted
under the laws of Barbados and an indirect wholly-owned subsidiary of the Corporation;
	 
	 	 	 	“GeoGlobal Canada” means GeoGlobal Resources (Canada) Inc., a corporation incorporated under
the laws of the Province of Alberta and a wholly-owned subsidiary of the Corporation;
	 
	 	 	 	“GeoGlobal India” means GeoGlobal Resources (India) Inc., a corporation constituted under
the laws of Barbados and a wholly-owned subsidiary of the Corporation;
	 
	 	 	 	“misrepresentation”, “material fact”, “material change” and “distribution” have the
respective meanings ascribed thereto in the Securities Act (Ontario), except as otherwise
expressly provided herein;
	 
	 	 	 	“Offering Provinces” means the Provinces of Ontario, Alberta and British Columbia and such
other provinces of Canada agreed to by the Agent and the Corporation;
	 
	 	 	 	“Purchasers” means the persons who acquire Offered Securities from the Corporation by
executing Subscription Agreements accepted by the Corporation, and permitted assignees or
transferees of such persons from time to time;

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	 	 	 	“Registration Rights Agreement” means the agreement to be entered into between the
Corporation and the Agent on or before the Closing Date pursuant to which the Corporation
shall grant certain registration rights to the Purchasers in respect of the Underlying
Shares;
	 
	 	 	 	“Registration Statement” means a registration statement with respect to the resale of the
Underlying Shares prepared in the appropriate form as prescribed by the SEC;
	 
	 	 	 	“Regulation S” means Regulation S adopted by the SEC under the U.S. Securities Act;
	 
	 	 	 	“Right Certificates” means the certificates evidencing the Rights to be executed by the
Corporation, in form and substance satisfactory to the Corporation and the Agent;
	 
	 	 	 	“Subscription Agreement” means a subscription agreement executed by a Purchaser and accepted
by the Corporation in the form agreed upon by the Agent and the Corporation;
	 
	 	 	 	“Subsidiaries” means GeoGlobal Barbados, GeoGlobal Canada and GeoGlobal India, being all of
the subsidiaries (as defined in the Business Corporations Act (Ontario)) of the Corporation;
	 
	 	 	 	“Underlying Shares” means, collectively, the Common Shares forming part of the Units, the
Warrant Shares and the Common Shares forming part of the Compensation Units and, in the
event that the Corporation fails to file the Registration Statement by the Registration
Filing Deadline, “Underlying Shares” includes the Common Shares forming part of the Rights
Units and the Common Shares issuable upon exercise of the Warrants forming part of the
Rights Units and, for the purposes of clarity, includes any additional Common Shares
issuable to the Agent as a result of the exercise of Compensation Options granted pursuant
to the Compensation Rights and Common Shares issuable pursuant to the exercise of Warrants
issued pursuant to the exercise of such Compensation Options;
	 
	 	 	 	“U.S. Exchange Act” means the United States Securities Exchange Act of 1934, as amended;
	 
	 	 	 	“U.S. Person” means a U.S. Person as that term is defined in Regulations S;
	 
	 	 	 	“U.S. Securities Act” means the United States Securities Act of 1933, as amended; and
	 
	 	 	 	“Warrant Certificates” means the certificates evidencing the Warrants to be executed by the
Corporation, in form and substance satisfactory to the Corporation and the Agent.

INTERPRETATION

     The division of this agreement into sections, subsections, paragraphs and other subdivisions
and the insertion of headings are for convenience of reference only and shall not affect the
construction or interpretation of this agreement. Unless otherwise inconsistent therewith,
references in this agreement to sections, subsections, paragraphs and other subdivisions are to
sections, subsections, paragraphs and other subdivisions of this agreement. In

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this agreement, words importing the singular number only include the plural and vice versa and
words importing gender include all genders.

TERMS AND CONDITIONS

	1.	 	Sale on Exempt Basis. The Agent shall:

	 	(a)	 	offer for sale and sell the Offered Securities in Canada only in the Offering
Provinces in compliance with all applicable Canadian Securities Laws and pursuant to
Regulation S or outside of Canada and the United States in compliance with applicable
laws and pursuant to Regulation S; provided that any offer or sale in any jurisdiction
other than an Offering Province shall be effected in a manner exempt from the
applicable prospectus or registration requirements under the securities legislation of
the jurisdiction in which such Purchaser resides, and provided further that all of the
forgoing shall be conducted in accordance with Schedule “A” hereto;
	 
	 	(b)	 	offer for sale and sell the Offered Securities only to such Purchasers and in
such manner so that, pursuant to the provisions of Canadian Securities Laws, no
prospectus or offering memorandum need be filed or delivered in connection therewith;
	 
	 	(c)	 	not offer for sale or sell the Offered Securities in any jurisdiction where the
Corporation may be subject to liability in connection with the sale of the Offered
Securities which is materially more onerous than the liability to which it may be
subject under Canadian Securities Laws; and
	 
	 	(d)	 	obtain from each Purchaser an executed Subscription Agreement subject to
acceptance by the Corporation.

The Agent and the Corporation hereby agree that the offer and sale of the Offered Securities
will be made in compliance with the provisions of Schedule “A” hereto.

	2.	 	Filings. The Corporation undertakes to file or cause to be filed all forms or undertakings
required to be filed by the Corporation and the Purchasers, respectively, in connection with
the purchase and sale of the Offered Securities so that the distribution of the Offered
Securities may lawfully occur without the necessity of filing a prospectus or an offering
memorandum in the Offering Provinces or elsewhere, and the Agent undertakes to use its
reasonable best efforts to cause Purchasers to complete and file, if required, any forms or
undertakings required by the Canadian Securities Laws or any other applicable securities laws.
All such filings shall be made by the Corporation on behalf of the party legally responsible
to file the same and all fees payable in connection with such filings shall be at the sole
expense of the Corporation.
	 
	3.	 	No Offering Memorandum. Neither the Corporation nor the Agent shall (i) provide to
prospective purchasers an offering memorandum within the meaning of Canadian Securities Laws;
or (ii) cause the sale of the Offered Securities to be advertised in printed public media of
general and regular paid circulation, radio, television or

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	 	 	telecommunications, including electronic display and the internet. The Corporation
represents and warrants that the documents made available to the Agent for distribution to
prospective purchasers in connection with the offering and sale of the Offered Securities
are the Subscription Agreement, the term sheet and publicly filed documents and such
documents do not constitute an offering memorandum under Canadian Securities Laws. The Agent
represents and warrants that it shall only distribute to prospective purchasers the
Subscription Agreement, the term sheet and publicly filed documents. The Agent further
represents and warrants that it shall offer for sale and sell the Offered Securities only in
those jurisdictions contemplated in subsection 1(a) and not elsewhere, without the express
consent of the Corporation.
	 
	4.	 	Covenants of the Corporation

	 	(a)	 	The Corporation hereby covenants with the Agent and the Purchasers that:

	 	(i)	 	the Corporation will use its best efforts at all times for the
period of twenty-four (24) months from the Closing Date to remain a reporting
issuer in all such provinces where it is presently a reporting issuer, or has
similar status, not in default of any requirements of the Canadian Securities
Laws applicable in such provinces;
	 
	 	(ii)	 	the Corporation will use its best efforts to have the
Underlying Shares listed on AMEX and to maintain the listing of the Common
Shares on AMEX at all times until at least twenty-four (24) months from the
Closing Date;
	 
	 	(iii)	 	as promptly as practicable after the Closing Date, the
Corporation will file the Registration Statement with the SEC and thereafter
use its best efforts to have the Registration Statement declared effective by
the SEC;
	 
	 	(iv)	 	during the period of 180 days following the Closing Date, the
Corporation will not issue or announce the issuance of any Common Shares or any
securities convertible into Common Shares, without the prior consent of the
Agent, acting reasonably, other than:

	 	(a)	 	options granted pursuant to any of the
Corporation’s stock option plans or stock purchase plans;
	 
	 	(b)	 	any Common Shares issued pursuant to the
exercise of any options granted pursuant to such stock option or stock
purchase plans; or
	 
	 	(c)	 	pursuant to non-brokered private placement
transactions contemplated to be completed simultaneously with the
closing of the Offering, provided such transactions comply with the
paragraph (v) below;

	 	(v)	 	none of the Corporation, its subsidiaries, any of their
affiliates, or any person acting on their behalf has, directly or indirectly,
made any offers or

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	 	 	 	sales of any security or solicited any offers to buy any security, under
circumstances that would require registration of any of the Offered
Securities under the U.S. Securities Act or cause this offering of the
Offered Securities to be integrated with prior or concurrent offerings by
the Corporation for purposes of the U.S. Securities Act or any applicable
shareholder approval provisions, including, without limitation, under the
rules and regulations of any exchange or automated quotation system on which
any of the securities of the Corporation are listed or designated. None of
the Corporation, its subsidiaries, their affiliates and any person acting on
their behalf will take any action or steps referred to in the preceding
sentence that would require registration of any of the Offered Securities
under the U.S. Securities Act or cause the offering of the Offered
Securities to be integrated with other offerings;
	 
	 	(vi)	 	the Corporation will take all steps necessary to: (A)
authorize the execution and delivery of the Agreements; (B) authorize the issue
of the Underlying Shares and ensure that sufficient unreserved Common Shares
are available for the issuance of the Underlying Shares; (C) authorize the
creation of the Warrants, the Rights, the Compensation Options and the
Compensation Rights; and (D) ensure that the Underlying Shares are or will be
upon their issue listed and posted for trading on AMEX or any other stock
exchange on which the Common Shares are listed for trading from time to time;
	 
	 	(vii)	 	the Corporation will fulfill all legal requirements applicable
to it to permit the offering and sale of the Offered Securities including,
without limitation, compliance with all Canadian Securities Laws, to enable the
Offered Securities to be offered for sale and sold to Purchasers without the
necessity of filing a prospectus or registration statement in the Offering
Provinces or in any other jurisdiction;
	 
	 	(viii)	 	the Corporation will at all times prior to the Closing Date allow the Agent
and its representatives to conduct all due diligence which the Agent may
reasonably require and will use its best efforts to make available the
Corporation’s senior management, counsel, auditors, independent engineers and
other applicable experts to answer any questions which the Agent (or another
syndicate member) has or may have, including, without limiting the generality
of the foregoing, any questions posed at one or more due diligence sessions to
be held prior to the Closing Time, for which the Agent (or its counsel) shall
distribute in advance a list of written questions to be answered thereat and to
which the Corporation shall provide written responses, at or prior to each
session, and the Corporation shall use its reasonable best efforts to have
written responses provided at or prior to each session by its outside
consultants, auditors, independent engineers and other experts who have been
asked by the Agent (or another syndicate member) or its counsel to attend
thereat to respond to questions;

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	 	(ix)	 	the Corporation will use its best efforts to fulfill, at or
prior to the Closing Date, each of the conditions set out in Section 8;
	 
	 	(x)	 	the Corporation will use the net proceeds derived from the
issue and sale of the Offered Securities for: (A) exploration, drilling and
development of the exploration blocks known as CB-ONN-2002/2, CB-ONN-2002/3,
DS-ONN-2003/1 and CB-ONN-2003/2 and all other exploration blocks as required in
India; and (B) general corporate purposes;
	 
	 	(xi)	 	the Corporation will use its best efforts to obtain the
necessary regulatory consents from the securities regulatory authorities in
each of the Offering Provinces in respect of the transactions contemplated by
this agreement, on such terms as are mutually acceptable to the Agent and the
Corporation, acting reasonably; and
	 
	 	(xii)	 	the Corporation will forthwith after the Closing file such
documents as may be required under the Canadian Securities Laws relating to the
Offering which, without limiting the generality of the foregoing, shall include
a Form 45-501F1 as prescribed by the Securities Act (Ontario) and the
equivalent in each of the other Offering Provinces.

	5.	 	Material Changes. If at any time after the date hereof until Closing there occurs any
material change or material changes (actual, proposed or prospective) in the business,
affairs, operations, assets, liabilities, capital or prospects of the Corporation considered
as a whole, the Corporation shall:

	 	(a)	 	promptly notify the Agent, in writing, providing full particulars of any such
change; and
	 
	 	(b)	 	file or cause to be filed with promptness, and in any event within any
statutory limitation period therefor, any document required to be filed with any
regulatory body having jurisdiction and comply with all requirements of any applicable
securities legislation of such jurisdiction.

The Corporation shall in good faith discuss with the Agent any change in circumstances
(actual, proposed or prospective) in respect of which there is reasonable doubt whether
written notice should be given to the Agent pursuant to this section.

	6.	 	Representations and Warranties. The Corporation represents and warrants to the Agent and the
Purchasers, and acknowledges that the Agent and the Purchasers are each relying upon such
representations and warranties in entering into this agreement and the Subscription Agreements
or purchasing Offered Securities, as the case may be, that:

	 	(a)	 	each of the Corporation and the Subsidiaries has been duly incorporated and
organized and is validly existing under the laws of the jurisdiction of its
incorporation and has all requisite corporate capacity, power and authority to carry on
its business as now conducted by it and as is presently proposed to be conducted by it
and to own, lease and operate its assets;

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	 	(b)	 	the Subsidiaries are the sole subsidiaries of the Corporation and the
Corporation is the registered and beneficial owner of all of the issued and outstanding
securities of each Subsidiary, free and clear of all mortgages, liens, charges,
pledges, encumbrances, security interests, adverse claims or demands of any kind
whatsoever, except as is set out in Schedule “6(b)”, and neither the Corporation nor
any of its Subsidiaries is a party to nor has it granted any agreement, warrant, option
or right or privilege capable of becoming an agreement, for the purchase, subscription
or issuance of any securities of any Subsidiary;
	 
	 	(c)	 	each of the Corporation and the Subsidiaries is duly qualified to carry on
business under the laws of the jurisdiction in which it carries on its business or
proposes to carry on business and is in good standing in each of such jurisdictions;
	 
	 	(d)	 	each of the Corporation and the Subsidiaries holds all material licences,
registrations, permits, consents or qualifications required in order to enable its
business to be carried on as now conducted or as proposed to be conducted, and all such
licences, certificates, registrations, permits, consents and qualifications are valid
and subsisting and in good standing and neither the Corporation nor any Subsidiary has
received any notice of proceedings related to the revocation or modification of any
such licence, registration, permit, consent or qualification;
	 
	 	(e)	 	each of the Corporation and the Subsidiaries has conducted and is conducting
its business in material compliance with all applicable laws, by-laws, rules and
regulations of each jurisdiction in which that business is carried on and the
Corporation is not aware of any fact or circumstance that would reasonably be expected
to have a material adverse effect upon the condition, financial or otherwise, or the
earnings, business affairs or business prospects of the Corporation on a consolidated
basis;
	 
	 	(f)	 	no consent, approval, permit, authorization, order of or filing with any court
or governmental agency or body is required by the Corporation for the execution and
delivery of and the performance by the Corporation of its obligations under this
agreement, except as may be required under the Canadian Securities Laws, the U.S.
Securities Act and applicable state securities laws and the rules of AMEX, all of which
have been or will be obtained or filed, as the case may be, in a timely manner in
accordance with such laws and rules;
	 
	 	(g)	 	none of the execution and delivery of the Agreements, the performance by the
Corporation of its obligations thereunder, the issuance and sale of the Offered
Securities hereunder, the issuance of the Warrants, the issuance of the Compensation
Options and the Compensation Rights to the Agent, or the issuance of the Underlying
Shares will: (A) conflict with or result in a breach of or create a state of facts
which, after notice or lapse of time or both, will result in a breach of (i) any
statute, rule or regulation applicable to the Corporation; (ii) Canadian Securities
Laws; (iii) the constating documents, by-laws or resolutions of the directors (or any
committee thereof) or shareholders of the Corporation or any of the Subsidiaries which
are in effect at the date hereof, (iv) any mortgage, note,

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	 	 	 	indenture, contract, agreement, instrument, lease or other document to which the
Corporation or any Subsidiary is a party or by which it is bound; or (v) any
judgement, decree or order binding the Corporation or any of the Subsidiaries or
their respective properties or assets; (B) require the consent, approval,
authorization, registration or qualification of or with any governmental authority,
stock exchange, securities association or other third party, except: (i) such as
have been obtained; or (ii) such as may be required (and shall be obtained prior to
the Closing Time) under Canadian Securities Laws; or (C) give rise to any lien,
charge or claim in or with respect to the properties or assets of the Corporation or
any of its Subsidiaries or the acceleration of or the maturity of any debt under any
indenture, mortgage, lease, agreement or instrument binding or affecting the
Corporation or any of the Subsidiaries or any of their respective properties or
assets;
	 
	 	(h)	 	the Financial Statements:

	 	(i)	 	have been prepared in accordance with United States generally
accepted accounting principles applied on a basis consistent with those of
preceding fiscal periods;
	 
	 	(ii)	 	present fully, fairly and correctly the consolidated assets,
liabilities and financial condition of the Corporation as at the dates at which
they were prepared and the consolidated results of its operations, changes in
stockholders’ equity and cash flows for the periods then ended;
	 
	 	(iii)	 	are in accordance with the consolidated books and records of
the Corporation; and
	 
	 	(iv)	 	contain and reflect all necessary adjustments for the fair
presentation on a consolidated basis of the results of its operations, changes
in stockholders’ equity and cash flows for the periods covered thereby,

and, since December 31, 2004, other than as publicly disclosed in the Corporation’s
Information Record, there has not been any material adverse change in the
consolidated financial position of the Corporation or the Corporation’s consolidated
assets, liabilities or undertaking (including, without limitation, any write-down of
assets), or the capital stock or consolidated long-term debt of the Corporation;

	 	(i)	 	the Corporation and each of the Subsidiaries has filed all necessary tax
returns and notices and has paid all applicable taxes of whatever nature for all tax
years to the date hereof to the extent such taxes have become due or have been alleged
to be due and the Corporation is not aware of any tax deficiencies or interest or
penalties accrued or accruing, or alleged to be accrued or accruing, thereon with
respect to the Corporation or any of the Subsidiaries where, in any of the above cases,
it would reasonably be expected to result in any material adverse change in

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	 	 	 	the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Corporation on a consolidated basis;

	 	(j)	 	the Corporation is, and will at the Closing Time be, a reporting issuer in good
standing under the securities laws of the Provinces of Ontario, Alberta, British
Columbia and Quebec and has a class of equity securities registered pursuant to Section
12(b) of the U.S. Exchange Act and, pursuant thereto, is obligated to file periodic and
other reports and schedules with the SEC and is current in, and will at the Closing
Time be current in, filing all such periodic reports and schedules and the Corporation
has complied with its obligations under Canadian Securities Laws to make timely
disclosure of all material changes relating to it and no such disclosure has been made
on a confidential basis and there is no material change relating to the Corporation
which has occurred and with respect to which the requisite material change report has
not been filed under Canadian Securities Laws;
	 
	 	(k)	 	the Corporation has taken no action designed to, or reasonably likely to have
the effect of, terminating the registration of the Common Shares under the U.S.
Exchange Act nor has the Corporation received any notification that the SEC is
contemplating terminating such registration;
	 
	 	(l)	 	no portion of the Corporation’s Information Record contained an untrue
statement of a material fact or omitted to state a material fact necessary in order to
make the statements made, in the light of the circumstances under which they were made,
not misleading, as at its date of filing;
	 
	 	(m)	 	the authorized capital of the Corporation consists of 100,000,000 Common Shares
and 1,000,000 Preferred Shares, of which as at September 7, 2005 58,297,855 Common
Shares and no preferred shares are issued and outstanding as fully paid and
non-assessable shares of the Corporation;
	 
	 	(n)	 	Computershare Trust Company of Canada at its principal offices in the City of
Calgary, Alberta, has been duly appointed as the registrar and transfer agent for the
Common Shares;
	 
	 	(o)	 	the Common Shares are listed and posted for trading on AMEX and no order
ceasing or suspending trading in any securities of the Corporation or prohibiting the
issue and sale of securities by the Corporation has been issued and, to the best of the
Corporation’s knowledge, no proceedings for such purpose have been instituted or are
pending, contemplated or threatened;
	 
	 	(p)	 	the attributes of the Offered Securities, the Warrants, the Compensation
Options and the Compensation Rights, and of all securities forming part thereof or
issuable upon exercise thereof shall conform in all material respects with the
description thereof in this agreement and the Subscription Agreements;
	 
	 	(q)	 	each of the form of certificate representing the Common Shares, the Warrant
Certificate, the Right Certificate and the Compensation Option Certificate has

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	 	 	 	been duly approved by the directors of the Corporation, does not conflict with the
constating documents of the Corporation and, to the extent applicable, is in proper
form under the laws of the State of Delaware and complies with the rules of AMEX;

	 	(r)	 	the Corporation is not a party to nor has it granted any agreement, warrant,
option or right or privilege capable of becoming an agreement, for the purchase,
subscription or issuance of any Common Shares or securities convertible into or
exchangeable for Common Shares other than pursuant to the Offering and except pursuant
to existing outstanding options, rights, warrants, convertible securities and
obligations as set out in Schedule “6(r)” hereto and pursuant to options granted to
officers, employees, directors and consultants of the Corporation pursuant to existing
stock option plans and as permitted by AMEX;
	 
	 	(s)	 	each of the Agreements has been, is or will be upon execution thereof, duly
authorized, executed and delivered by the Corporation and constitutes, or will
constitute when executed, a legal, valid and binding obligation of the Corporation
enforceable against the Corporation in accordance with its terms except that: (i) the
enforcement thereof may be limited by bankruptcy, insolvency and other laws affecting
the enforcement of creditors’ rights generally, (ii) rights of indemnity, contribution
and waiver of contribution thereunder may be limited under applicable law and (iii)
equitable remedies, including, without limitation, specific performance and injunctive
relief, may be granted only in the discretion of a court of competent jurisdiction;
	 
	 	(t)	 	other than the Agent, there is no person, firm or company acting or purporting
to act at the request of the Corporation, who is entitled to any brokerage, agency,
finder’s or similar fee in connection with the transactions contemplated herein;
	 
	 	(u)	 	the Corporation has not, directly or indirectly, declared or paid any dividend
or declared or made any other distribution on any of its shares or securities of any
class, or, directly or indirectly, redeemed, purchased or otherwise acquired any of its
            shares or securities or agreed to do any of the foregoing;
	 
	 	(v)	 	there is not, in the articles or by-laws of the Corporation or in any
agreement, mortgage, note, debenture, indenture or other instrument or document to
which the Corporation is a party, any restriction upon or impediment to the declaration
or payment of dividends by the directors of the Corporation, the payment of dividends
by the Corporation to the holders of its Common Shares or the carrying on of business
as currently contemplated;
	 
	 	(w)	 	the Corporation has not withheld, and will not withhold from the Agent at any
time during the distribution of the Offered Securities any facts relating to the
Corporation or any Subsidiary including, without limitation, facts relating to any
threatened or pending legal, regulatory or administrative proceeding, or to the
Offering that would be material to a prospective purchaser of the Offered Securities;

12

 

	 	(x)	 	at the Closing Time, all necessary corporate action will have been taken by the
Corporation to (i) create the Warrants, the Rights, the Compensation Options and the
Compensation Rights, (ii) authorize the Corporation to enter into the Agreements, and
(iii) allot and authorize the issuance of the Underlying Shares which, when issued in
the case of the Common Shares comprising part of the Units, and when issued in
accordance with their terms in the case of the other Underlying Shares, will be issued
as fully paid and non-assessable shares;
	 
	 	(y)	 	there is no action, suit, proceeding, investigation or inquiry outstanding,
pending or, to the best of the knowledge, information and belief of the Corporation,
threatened against or affecting the Corporation or any Subsidiary or any of their
respective properties or assets, at law or in equity or before or by any federal,
provincial, state, municipal or other governmental or regulatory department,
commission, agency or board, domestic or foreign, which would reasonably be expected to
have a material adverse effect on the condition (financial or otherwise) of the
business, properties, assets, capital, net worth or results of operations of the
Corporation on a consolidated basis;
	 
	 	(z)	 	except as set forth on Schedule “6(z)”, none of the current or former directors
or officers of the Corporation or the Subsidiary or any associate or affiliate of any
of the foregoing had, has or intends to have any material interest, direct or indirect,
in the transactions contemplated by this agreement, in any material transaction or in
any proposed material transaction with the Corporation or any of its Subsidiaries
which, as the case may be, materially affects, is material to or will materially affect
the Corporation or any Subsidiary;
	 
	 	(aa)	 	each of the Corporation and the Subsidiaries is in compliance in all material
respects with all terms and provisions of all contracts, agreements, indentures,
mortgages, deeds of trust, bank loans, credit agreements, leases, policies, instruments
and licences in connection with the conduct of its business and all such contracts,
agreements, indentures, mortgages, deeds of trust, bank loans, credit agreements,
leases, policies, instruments and licences are valid and binding in accordance with
their terms and in full force and effect, and no breach or default by the Corporation
or any Subsidiary or event which, with notice or lapse of time or both, could
constitute a material breach or material default by the Corporation or any Subsidiary
exists with respect thereto;
	 
	 	(bb)	 	except as disclosed in the Financial Statements, each of the Corporation and
the Subsidiaries has all of the right, title and interest in and to its property
interests, free and clear of all mortgages, liens, charges, pledges, encumbrances,
claims, security interests or demands of any kind whatsoever, except as set forth on
Schedule “6(bb)”;
	 
	 	(cc)	 	since December 31, 2004, other than as disclosed in the Corporation’s
Information Record:

13

 

	 	(i)	 	there has not been any material adverse change in the assets,
liabilities or obligations (absolute, accrued, contingent or otherwise) of the
Corporation on a consolidated basis;
	 
	 	(ii)	 	there has not been any material change in the capital stock or
long-term debt of the Corporation on a consolidated basis;
	 
	 	(iii)	 	there has not been any material adverse change in the
business, business prospects, conditions (financial or otherwise) or results of
the operations of the Corporation on a consolidated basis; and
	 
	 	(iv)	 	each of the Corporation and the Subsidiaries has carried on
business in the ordinary course;

	 	(dd)	 	except as disclosed in the Financial Statements, neither the Corporation nor
any of the Subsidiaries has any liabilities, direct or indirect, contingent or
otherwise, which materially adversely affects the Corporation or any of the
Subsidiaries or would reasonably be expected to materially adversely affect, the
business, operations or condition (financial or otherwise) of the Corporation or any of
its Subsidiaries or their respective properties or assets, taken as a whole. Without
limiting the generality of the foregoing, neither the Corporation nor any of the
Subsidiaries has any material obligation or liability for the debts or obligations of
others or has any material exposure or liability except as set forth in the Financial
Statements or those arising in the ordinary course of business, none of which is
material to the Corporation on a consolidated basis;
	 
	 	(ee)	 	to the knowledge of the Corporation and its directors and officers, no
shareholders’, pooling or other form of agreement is in force or effect which in any
manner affects the voting or control of any of the securities of the Corporation;
	 
	 	(ff)	 	each of the Corporation and the Subsidiaries has procured and maintains
adequate insurance against all insurable risks which are material to the Corporation on
a consolidated basis, which insurance is of such type and in such amounts as is usual
and customary to the industry in which it is engaged and the scope of its operations;
	 
	 	(gg)	 	the Corporation is not aware of any legislation which it anticipates will
materially and adversely affect the business, affairs, operations, assets, liabilities
(contingent or otherwise) or prospects of the Corporation;
	 
	 	(hh)	 	each of the Corporation and the Subsidiaries owns or possesses adequate rights
to use or assign all material intellectual property used by it in the operation of its
business, without making any payment to any person or granting any rights to any person
in exchange therefor, other than in accordance with the terms of any such license,
sub-license or franchise arrangement. No event has occurred during the registration or
filing of, or during any other proceeding relating to such material intellectual
property owned by the Corporation or the Subsidiaries that would

14

 

	 	 	 	make invalid or unenforceable, or negate the right to issuance or use of any of such
material intellectual property owned by the Corporation or the Subsidiaries, other
than any such event which would not reasonably be expected to materially adversely
affect the business, operations or conditions (financial or otherwise) of the
Corporation on a consolidated basis. There is no intellectual property of any
person which, to the knowledge of the Corporation, impairs or prevents the
development, manufacture, use, sale, lease, license and service of products, now
existing or under development by the Corporation or the Subsidiaries;
	 
	 	(ii)	 	there are not any defects, failures or impairments in the title of the
Corporation or any of its Subsidiaries to their respective oil and natural gas
properties, whether or not an action, suit, proceeding or inquiry is pending or
threatened or whether or not discovered by any third party which, in aggregate could
have a material adverse effect on the Corporation’s business, operations or conditions
(financial or otherwise);
	 
	 	(jj)	 	the Corporation maintains disclosure controls and procedures as required by
Rule 13a-15 or Rule 15d-15 under the U.S. Exchange Act, and such controls and
procedures are effective to ensure that all material information concerning the
Corporation is made known, on a timely basis, to the individuals responsible for the
preparation of the Corporation’s filings with the SEC. The Corporation has disclosed
to its auditors and the audit committee of its board of directors (a) all significant
deficiencies and material weaknesses in the design or operation of internal control
over financial reporting (as such term is defined by Rules 13a-15(f) and 15d-15(f)
under the U.S. Exchange Act) which are reasonably likely to adversely affect the
Corporation’s ability to record, process, summarize and report financial information
and (b) any fraud, whether or not material, that involves management or other employees
who have a significant role in the Corporation’s internal controls over financial
reporting;
	 
	 	(kk)	 	the Corporation and each of the Subsidiaries maintains a system of internal
accounting controls sufficient to provide commercially reasonable assurance that: (i)
transactions are executed in accordance with management’s general or specific
authorizations; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to
maintain asset accountability; (iii) access to assets is permitted only in accordance
with management’s general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences;
	 
	 	(ll)	 	the Corporation has complied in all material respects with the Sarbanes-Oxley
Act of 2002 and the corporate governance rules of the AMEX applicable to it;
	 
	 	(mm)	 	there has never been a reportable event (within the meaning of National
Instrument 51-102 of the Canadian securities administrators) involving the Corporation
and its current or former auditors;

15

 

	 	(nn)	 	the Corporation has fulfilled its obligations, if any, under the minimum
funding standards of Section 302 of the U.S. Employee Retirement Income Security Act of
1974 (“ERISA”) and the regulations and published interpretations thereunder with
respect to each “plan” as defined in Section 3(3) of ERISA and such regulations and
published interpretations in which its employees are eligible to participate and each
such plan is in compliance in all material respects with the presently applicable
provisions of ERISA and such regulations and published interpretations. No “Reportable
Event” (as defined in ERISA) has occurred with respect to any “Pension Plan” (as
defined in ERISA) for which the Corporation could have any liability.
	 
	 	(oo)	 	the property, assets and operations of the Corporation and of its Subsidiaries
comply, to the best of the knowledge of the Corporation, in all material respects with
all applicable Environmental Laws (which term means and includes, without limitation,
any and all applicable international, federal, provincial, state, municipal or local
laws, statutes, regulations, treaties, orders, policies, judgments, decrees,
ordinances, official directives and all authorizations relating to the environment,
occupational health and safety, or any Environmental Activity (which term means and
includes, without limitation, any past, present or future activity, event or
circumstance in respect of a Contaminant (which term means and includes, without
limitation, any pollutants, dangerous substances, liquid wastes, hazardous wastes,
hazardous materials, hazardous substances or contaminants or any other matter including
any of the foregoing, as defined or described as such pursuant to any Environmental
Law), including, without limitation, the storage, use, holding, collection, purchase,
accumulation, assessment, generation, manufacture, construction, processing, treatment,
stabilization, disposition, handling or transportation thereof, or the release, escape,
leaching, dispersal or migration thereof into the natural environment, including the
movement through or in the air, soil, surface water or groundwater)). For these
purposes, Environmental Laws, Environmental Activity or Contaminant do not include the
normal course obligations for an oil and gas exploration and exploitation business.
During the normal course business of plugging or abandoning wells, there are or may be
obligations under applicable Environmental Laws to restore the area to its natural
state, which obligations are performed by the Corporation, to the extent required,
according to the applicable Environmental Laws. The Corporation also is or may be
required to close open reserve pits, which obligations are completed, to the extent
required, within the time periods and according to the specifications of the relevant
regulatory agency;
	 
	 	(pp)	 	no property which is or has been owned, leased or occupied by the Corporation
or its subsidiaries has been designated as a Superfund site pursuant to the
Comprehensive Environmental Response, Compensation of Liability Act of 1980, as amended
(42 U.S.C. Section 9601, et. seq.) (“CERCLA”) or otherwise designated as a contaminated
site under applicable state or local law. Neither the Corporation nor any of its
subsidiaries has been named as a “potentially responsible party” under CERCLA;

16

 

	 	(qq)	 	the Corporation does not have any knowledge of, and has not received any notice
of, any material claim, judicial or administrative proceeding, pending or threatened
against, or which may affect, the Corporation or any of the Subsidiaries or any of the
properties, assets or operations thereof, relating to, or alleging any violation of any
Environmental Law, the Corporation is not aware of any facts which could give rise to
any such claim or judicial or administrative proceeding and neither the Corporation nor
any of its Subsidiaries or any of their respective property, assets or operations, is
the subject of any investigation, evaluation, audit or review by any Governmental
Authority (which term means and includes, without limitation, any national, federal
government, province, state, municipality or other political subdivision of any of the
foregoing, any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government and any corporation or other
entity owned or controlled (through stock or capital ownership or otherwise) by any of
the foregoing) to determine whether any violation of any Environmental Law has occurred
or is occurring or whether any remedial action is needed in connection with a release
of any Contaminant into the environment, except for compliance investigations conducted
in the normal course by any Governmental Authority;
	 
	 	(rr)	 	neither the Corporation nor any of the Subsidiaries has given or filed any
notice under any international, federal, state, provincial or local law with respect to
any Environmental Activity, neither the Corporation nor any of its Subsidiaries has any
liability (whether contingent or otherwise) in connection with any Environmental
Activity and the Corporation is not aware of any notice being given under any
international, federal, state, provincial or local law or of any liability (whether
contingent or otherwise) with respect to any Environmental Activity relating to or
affecting the Corporation or any of the Subsidiaries or any of their respective
properties, assets, businesses or operations;
	 
	 	(ss)	 	neither the Corporation nor any of the Subsidiaries stores any hazardous or
toxic waste or substance on the property thereof and they have not disposed of any
hazardous or toxic waste, in each case in a manner contrary to any Environmental Law,
and there are no Contaminants on any of the premises at which the Corporation or its
Subsidiaries carries on business, in each case other than in compliance with
Environmental Laws;
	 
	 	(tt)	 	neither the Corporation nor any of its Subsidiaries is subject to any
contingent or other liability relating to the restoration or rehabilitation of land,
water or any other part of the environment, or compliance with any Environmental Law;
	 
	 	(uu)	 	neither the Corporation nor any other person associated with or acting on
behalf of the Corporation including, without limitation, any director, officer, agent
or employee of the Corporation or its subsidiaries, has, directly or indirectly, while
acting on behalf of the Corporation or its subsidiaries (i) used any corporate funds
for unlawful contributions, gifts, entertainment or other unlawful expenses relating to
political activity; (ii) made any unlawful payment to foreign or domestic government
officials or employees or to foreign or domestic political

17

 

	 	 	 	parties or campaigns from corporate funds; (iii) violated any provision of the
Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any other unlawful
payment;

	 	(vv)	 	GeoGlobal India is a party to the following material agreements (collectively,
the “GeoGlobal India Material Agreements”):

	 	(i)	 	a Production Sharing Contract dated February 4, 2003 among
GeoGlobal India, the Government of India, Gujarat State Petroleum Corporation
Limited (“GSPC”) and Jubilant Enpro Limited, granting GeoGlobal India a 10%
participating interest (the “KG Participating Interest”) in an exploration
block known as block KG OSN 2001/3 (the “KG 2001/3”) (such contract, the “KG
PSC”);
	 
	 	(ii)	 	a Carried Interest Agreement dated August 27, 2002 between
GeoGlobal India and GSPC, granting GeoGlobal India a 10% carried interest (the
“KG Carried Interest”) for its share of costs incurred in respect of the
exploration activities conducted on KG 2001/3 prior to commencement of
commercial production on KG 2001/3 (such agreement, the “Carried Interest
Agreement”);
	 
	 	(iii)	 	a Joint Operating Agreement dated August 7, 2003 among
GeoGlobal India, GSPC and Jubilant Enpro Limited, setting forth the rights and
obligations of the parties thereto in respect of, among other things, the
exploration, development and operation of KG 2001/3 (such agreement, the “KG
JOA”);
	 
	 	(iv)	 	an exploration license dated March 12, 2003 granted by the
Government of India to GSPC, Jubilant Enpro Limited and GeoGlobal India, in
respect of the right to explore for oil and natural gas in KG 2001/3 (such
license, the “KG 2001/3 License”); and
	 
	 	(v)	 	a Participating Interest Agreement dated March 27, 2003 among
GeoGlobal India and Roy Group (Mauritius) Inc., a corporation incorporated
under the laws of Mauritius (“Roy Group”) and wholly owned by Jean Paul Roy,
providing for the transfer and assignment to Roy Group of a 50% interest in the
KG Participating Interest and the KG Carried Interest (the “KG Participating
Interest Agreement”);

	 	(ww)	 	each of the GeoGlobal India Material Agreements is in full force and effect and
has not been amended from the form provided to the Agent or its counsel, as the case
may be, and each of the GeoGlobal India Material Agreements constitutes a legal, valid
and binding obligations of the Corporation, enforceable against in accordance with its
terms for the periods (if any) stated therein, except that: (i) the enforcement thereof
may be limited by bankruptcy, insolvency and other laws affecting the enforcement of
creditors’ rights generally, (ii) rights of indemnity, contribution and waiver of
contribution thereunder may be limited under

18

 

	 	 	 	applicable law and (iii) equitable remedies, including, without limitation, specific
performance and injunctive relief, may be granted only in the discretion of a court
of competent jurisdiction;
	 
	 	(xx)	 	GeoGlobal India has fulfilled or has taken all actions necessary to enable it
to fulfill when due all of its obligations under the GeoGlobal India Material
Agreements, and there is not, under any of the GeoGlobal India Material Agreements, any
existing default or event of default or any event which, with or without the giving of
notice or the passage of time, would constitute a default under any of the GeoGlobal
India Material Agreements or provide to any party to any GeoGlobal India Material
Agreement a right of termination thereunder. There are no laws, regulations, rules or
decrees currently in effect or reasonably expected to be in effect which adversely
affect or might adversely affect GeoGlobal India’s rights under any of the GeoGlobal
India Material Agreements;
	 
	 	(yy)	 	subject to the terms of the KG Participating Interest Agreement, GeoGlobal
India has a legal, valid and enforceable ownership interest in the KG Participating
Interest and has not sold, conveyed, transferred, assigned or otherwise disposed of, or
created any encumbrance on or with respect to, the KG Participating Interest;
	 
	 	(zz)	 	GeoGlobal India is (in addition to GSPC and Jubilant Enpro Limited) the legal
and registered owner of the KG 2001/3 License, free and clear of any and all
encumbrances;
	 
	 	(aaa)	 	other than as a party to the GeoGlobal India Material Agreements and other
than as disclosed in the Corporation’s Information Record, GeoGlobal India has no
business activities, assets, liabilities, employees, customers or suppliers and has no
revenues;
	 
	 	(bbb)	 	GeoGlobal Barbados is a party to the following material agreements
(collectively, the “GeoGlobal Barbados Material Agreements”):

	 	(i)	 	a Production Sharing Contract dated February 6, 2004 among
GeoGlobal Barbados, the Government of India, GSPC and Jubilant Enpro Private
Limited, granting to GeoGlobal Barbados a 10% participating interest (the “CB
2002/2 Participating Interest”) in an exploration block known as CB-ONN-2002/2
(such contract, the “CB 2002/2 PSC”);
	 
	 	(ii)	 	a Production Sharing Contract dated February 6, 2004 among
GeoGlobal Barbados, the Government of India, GSPC, Jubilant Enpro Private
Limited and Prize Petroleum Company Limited, granting to GeoGlobal Barbados a
10% participating interest (the “CB 2002/3 Participating Interest”) in an
exploration block known as CB-ONN-2002/3 (such contract, the “CB 2002/3 PSC”);
	 
	 	(iii)	 	a Joint Operating Agreement dated August 6, 2004 among
GeoGlobal India, GSPC and Jubilant Enpro Private Limited, setting forth the
rights

19

 

	 	 	 	and obligations of the parties thereto in respect of, among other things,
the exploration, development and operation of CB 2002/2 (such agreement
hereinafter referred to as the “CB 2002/2 JOA”);
	 
	 	(iv)	 	a Joint Operating Agreement dated August 6, 2004 among
GeoGlobal Barbados, GSPC, Jubilant Enpro Private Limited and Prize Petroleum
Company Limited, providing for the rights and obligations of the parties
thereto in respect of, among other things, the exploration, development and
operation of CB 2002/3 (such agreement, the “CB 2002/3 JOA”);
	 
	 	(v)	 	an exploration license dated July 29, 2004 granted by the
Government of India to GSPC, Jubilant Enpro Private Limited, Prize Petroleum
Company Limited and GeoGlobal Barbados, in respect of the right to explore for
oil and natural gas in CB 2002/3 (such license, the “CB 2002/3 License”);
	 
	 	(vi)	 	a Deed of Assignment and Assumption dated April 7, 2005 among
GeoGlobal Barbados and GSPC, granting to GeoGlobal Barbados (subject to receipt
of the consent of the Government of India) a 20% participating interest (the
“CB 2 Participating Interest”) in an exploration block known as CB-ON-2,
subject to reduction to a 14% participating interest pursuant to the terms
thereof (such deed, the “Assignment”);
	 
	 	(vii)	 	a Production Sharing Contract dated April 12, 2000 among the
Government of India, GSPC, Oil & Natural Gas Corporation Limited. (“ONGC”) and
Hindustan Oil Exploration Company Limited, granting to GSPC and ONGC and
Hindustan Oil Exploration Company Limited their respective participating
interests (at that time) in CB 2, the rights and obligations of which contract
have been assumed by GeoGlobal Barbados under the terms of the Assignment in
proportion to the CB 2 Participating Interest (such contract, the “CB 2 PSC”);
and
	 
	 	(viii)	 	a Joint Operating Agreement dated June 26, 2000 among GSPC and ONGC,
providing for the rights and obligations of the parties thereto in respect of,
among other things, the exploration, development and operation of CB 2, as
amended to reflect the CB Participating Interest (such agreement, the “CB 2
JOA”);

	 	(ccc)	 	an exploration license dated May 21, 2004 was granted by the Government of
India to Jubilant Enpro Limited in respect of the right to explore for oil and natural
gas in CB 2002/2 (the “CB 2002/2 License” and such license, also a “GeoGlobal Barbados
Material Agreement”) and Jubilant Enpro Limited is the legal and registered owner of
the CB 2002/2 License, to the best of the knowledge of the Corporation, after due
inquiry, free and clear of all encumbrances;

	 	(ddd)	 	each of the GeoGlobal Barbados Material Agreements is in full force and effect
and has not been amended from the form provided to the Agent or its counsel, as the
case may be, and each of the GeoGlobal Barbados Material Agreements

20

 

	 	 	 	constitutes a legal, valid and binding obligation of the Corporation, enforceable
against it in accordance with its terms for the periods (if any) stated therein,
except that: (i) the enforcement thereof may be limited by bankruptcy, insolvency
and other laws affecting the enforcement of creditors’ rights generally, (ii) rights
of indemnity, contribution and waiver of contribution thereunder may be limited
under applicable law and (iii) equitable remedies, including, without limitation,
specific performance and injunctive relief, may be granted only in the discretion of
a court of competent jurisdiction;

	 	(eee)	 	GeoGlobal Barbados has fulfilled or has taken all actions necessary to enable
it to fulfill when due all of its obligations under the GeoGlobal Barbados Material
Agreements, and there is not, under any of the GeoGlobal Barbados Material Agreements,
any existing default or event of default or any event which, with or without the giving
of notice or the passage of time, would constitute a default under any of the GeoGlobal
Barbados Material Agreements or provide to any party to any GeoGlobal Barbados Material
Agreement a right of termination thereunder. There are no laws, regulations, rules or
decrees currently in effect or reasonably expected to be in effect which adversely
affect or might adversely affect GeoGlobal Barbados’ rights under any of the GeoGlobal
Barbados Material Agreements;
	 
	 	(fff)	 	GeoGlobal Barbados has a legal, valid and enforceable ownership interest in
each of the CB 2002/2 Participating Interest and the CB 2003/3 Participating Interest
and has not sold, conveyed, transferred, assigned or otherwise disposed of, or created
any encumbrance on or with respect to, the CB 2002/2 Participating Interest or the CB
2002/3 Participating Interest;
	 
	 	(ggg)	 	GeoGlobal Barbados is (in addition to GSPC, Jubilant Enpro Private Limited and
Prize Petroleum Company Limited) the legal and registered owner of the CB 2002/3
License, free and clear of any and all encumbrances;
	 
	 	(hhh)	 	other than as a party to the GeoGlobal Barbados Material Agreements and other
than as disclosed in the Corporation’s Information Record, GeoGlobal Barbados has no
business activities, assets, liabilities, employees, customers or suppliers and has no
revenues;

	7.	 	Closing Deliveries. The purchase and sale of the Offered Securities shall be completed at the
Closing Time at the offices of Goodman and Carr LLP, counsel to the Agent, at 200 King Street
West, Suite 2300, Toronto, ON M5H 3W5 or at such other place as the Agent and the Corporation
may agree upon. Subject to the terms of this agreement, at the Closing Time, the Agent shall
deliver to the Corporation duly executed Subscription Agreements and pay to the Corporation or
as the Corporation may direct the aggregate Gross Proceeds less the Agent’s Fee therefor and
their expenses to the Closing Date in lawful money of Canada by cheque, or banker’s draft or
wire transfer. At the Closing Time, the Corporation shall, subject to and to the extent of
its acceptance of Subscription Agreements, issue and deliver definitive certificates
representing the Common Shares, the Warrants and the Rights subscribed for pursuant to the
Subscription Agreements

21

 

	 	 	registered in such names as shall be designated in the Subscription Agreements and issue and
deliver to the Agent the Compensation Option Certificates evidencing the Compensation
Options and Compensation Rights to which it is entitled hereunder.
	 
	8.	 	Closing Conditions.

	 	(a)	 	The Agent’s obligations under this agreement, and each Purchaser’s obligation
to purchase the Offered Securities at the Closing Time (in respect of each Closing
Date), shall be conditional upon the fulfilment at or before such Closing Time of the
following conditions:

	 	(i)	 	the Agent shall have received a certificate, dated as of the
Closing Date, signed by two executive officers of the Corporation, certifying
for and on behalf of the Corporation, to the best of the knowledge, information
and belief of the persons so signing, after having made due enquiry, that (i)
no order ceasing or suspending trading in securities of the Corporation or
prohibiting the sale of the Common Shares or the Warrants or the issuance of
the Underlying Shares issuable upon exercise of the Warrants has been issued
and no proceedings for such purpose are pending or threatened; (ii) there has
not been any material change in the affairs of the Corporation on a
consolidated basis, financial or otherwise, which requires disclosure under the
timely disclosure provisions of Canadian Securities Laws, except as has been
publicly disclosed and no such disclosure has been made on a confidential
basis; (iii) no default exists or will exist as a result of the issuance of the
Offered Securities, the Underlying Shares, the Warrants, the Compensation
Options or the Compensation Rights under any instrument or agreement and the
Corporation has performed each of the covenants on its part to be performed
under any such instrument or agreement, the non-performance of which could
reasonably be expected to have a material adverse effect on the Corporation;
(iv) the representations and warranties of the Corporation set out in Section 6
are true and correct as of the Closing Time with the same effect as though such
representations and warranties had been made on and as of such time; (v) the
Corporation has complied with all the terms, covenants and conditions of this
agreement on the Corporation’s part to be complied with up to the Closing Time;
and (vi) all necessary approvals have been obtained relating to the issuance of
the Offered Securities, the Warrants, the Compensation Options, the
Compensation Units, the Compensation Rights and the Underlying Shares;
	 
	 	(ii)	 	the Agent shall have received certificates dated the Closing
Date, signed by an appropriate officer or director of the Corporation, with
respect to the articles of the Corporation, the resolutions of the
Corporation’s board of directors relevant to the issue and sale of the Offered
Securities, the Warrants, the Compensation Options, the Compensation Units, the
Compensation Rights and the Underlying Shares, the execution of the

22

 

	 	 	 	Agreements, the incumbency and signature of signing officers, and such other
matters as the Agent may reasonably request;

	 	(iii)	 	the Agent shall have received favourable legal opinions of
counsel to the Corporation in respect of certain matters concerning the
Corporation and the Subsidiaries, addressed to the Agent, the Purchasers and
counsel to the Agent, in form and substance satisfactory to the Agent and its
counsel, acting reasonably, and, in providing such opinions, counsel to the
Corporation shall be entitled to rely on opinions of local counsel as to
matters governed by the laws of such other jurisdictions as such counsel deems
appropriate, and as to matters of fact or expert matters not within the
knowledge or professional competence of counsel, on certificates of public
officials and of the auditors, the transfer agent and the officers of the
Corporation or the Subsidiaries;
	 
	 	(iv)	 	the Agent shall be satisfied, in its sole discretion, after
carrying out such due diligence as the Agent deem appropriate, as to the legal,
financial and business affairs of the Corporation including, without
limitation, all legal proceedings against the Corporation;
	 
	 	(v)	 	the Corporation shall have taken all necessary corporate action
to authorize and approve the Agreements and all other matters relating thereto;
	 
	 	(vi)	 	the Corporation shall have obtained all requisite regulatory
approvals required to be obtained by the Corporation in respect of the
Offering, on terms mutually acceptable to the Corporation and the Agent,
including the approval of AMEX as to the listing of the Underlying Shares
thereon;
	 
	 	(vii)	 	the Corporation and the Agent shall have entered into the
Registration Rights Agreement in such form and containing such terms and
conditions as are customary for agreements of this nature in the context of the
Offering;
	 
	 	(viii)	 	the Corporation and the Agent shall have complied fully with all covenants
set forth herein and all relevant statutory and regulatory requirements,
required to be complied with prior to the Closing Time; and
	 
	 	(ix)	 	the Underlying Shares and the Warrants shall not be subject to
a hold period under Canadian Securities Laws that is greater than four months
from the Closing Date.

     Any breach or failure to comply with any of the foregoing conditions shall entitle either of
the Agent, in its sole discretion, to terminate the obligations of the Agent under this agreement
(subject to Section 15) and the obligations of the Purchasers under the Subscription Agreements
obtained by the Agent by written notice to that effect given to the Corporation at or prior to the
Closing Time.

23

 

	 	(b)	 	The Corporation’s obligations under this agreement, and each Purchaser’s
obligation to purchase the Offered Securities at the Closing Time, shall be conditional
upon the fulfilment at or before the Closing Time of the following conditions:

	 	(i)	 	the Corporation shall have determined and be satisfied in its
sole discretion that the offer and sale of the Offered Securities does not
violate any exemption form any prospectus delivery, registration, qualification
or other similar requirement of any security law of any jurisdiction; and
	 
	 	(ii)	 	nothing shall have come to the attention of the Corporation
that causes it to believe that the representations, warranties or covenants of
any Subscription Agreement are not accurate and complete as of the Closing and
as to which the Corporation has not withdrawn its acceptance of such
Subscription Agreement.

	9.	 	Rights of Termination. In addition to any other remedies which may be available to the
Agent, the Agent shall be entitled, at its option, to terminate and cancel, without any
liability on its part, all of its obligations under this agreement and the obligations of any
person whom it has solicited to purchase the Offered Securities who has executed a
Subscription Agreement, by notice in writing to that effect delivered to the Corporation prior
to the Closing Time if:

	 	(a)	 	it is not satisfied in its sole discretion with the results of all or any
portion of its due diligence review and investigations of the Corporation;
	 
	 	(b)	 	there has occurred any material adverse change (actual, contemplated or
threatened) or any change in a material fact or a new material fact or a development
that could, in the sole opinion of the Agent, be expected to result on a material
adverse change or a change in a material fact or a new material fact in respect of the
business, operations, capital, condition (financial or otherwise), properties, assets,
liabilities, obligations or affairs of the Corporation or the Subsidiaries (taken as a
whole);
	 
	 	(c)	 	there should develop, occur or come into effect or existence any event, action,
state, condition or major financial occurrence of national or international
consequence, any acts of terrorism or hostilities or escalation thereof or other
calamity or crisis, or any law or regulation which, in the Agent’s reasonable opinion,
seriously adversely affects, or involves, or would be expected to seriously adversely
affect or involve, the financial markets or the business, operations or affairs of the
Corporation and the Subsidiaries (taken as a whole);
	 
	 	(d)	 	there has occurred any change of law or the interpretation or administration
thereof in the Offering Provinces or any inquiry, action, suit, investigation or other
proceeding (whether formal or informal) is announced, commenced or threatened by any
federal, provincial, state, municipal or other governmental department, commission,
board, bureau, agency or instrumentality (including,

24

 

	 	 	 	without limitation, AMEX or any securities regulatory authority), or securities
commission, stock exchange or similar regulatory authority, or any order is issued
in relation to the Corporation, any of its affiliates, or any of its directors or
officers or any of the Corporation’s securities (other than any such inquiry,
action, suit, investigation, proceeding or order relating solely to the Agent)
which, in the sole opinion of the Agent, prevents or restricts trading in or the
distribution of the Offered Securities or the Underlying Shares or the Warrants, or
has or would be expected to have a material adverse effect on the market price or
value of or the investment quality or marketability of the Offered Securities or the
Underlying Shares or Warrants;
	 
	 	(e)	 	the state of the financial markets or of the industry or markets in which the
Corporation operates or conducts business is or becomes such that the Offered
Securities or the Underlying Shares cannot, in the Agent’s reasonable opinion, be
successfully or profitably marketed or sold;
	 
	 	(f)	 	any order to cease trade or suspend trading in any securities of the
Corporation, or prohibiting or restricting the distribution of any of the Offered
Securities or the Underlying Shares or the Warrants is made, threatened or announced by
any securities regulatory authority in the Offering Provinces (or in the United States
or in any other jurisdiction in which Offered Securities are to be offered for sale and
sold in accordance with section 1(a) of this agreement), stock exchange or other
competent authority and such order is not rescinded, revoked or withdrawn;
	 
	 	(g)	 	the Corporation is in breach of, in default under or in non-compliance with any
material representation, warranty, term, condition or covenant of this agreement or the
Subscription Agreement; or
	 
	 	(h)	 	the Underlying Shares acquired by any Purchaser in the Offering Provinces would
be, if the Offering were completed, subject to a hold period in excess of four months
from the Closing Date (exclusive of any restrictions on transfer into the United States
unless such transfer is made pursuant to the Registration Statement or an exemption
from the registration requirements of the U.S. Securities Act.

If the Agent terminates this agreement pursuant to this section, there shall be no further
liability on the part of the Agent or of the Corporation to the Agent except in respect of
any liability which may have arisen or may thereafter arise under Sections 10, 12 or 13
hereof.

The right of the Agent to terminate its obligations under this agreement is in addition to
such other remedies as it may have in respect of any default, act or failure to act of the
Corporation in respect of any of the matters contemplated by this agreement.

	10.	 	Expenses. Whether or not Closing occurs, the Corporation shall pay all costs, fees and
expenses of or incidental to the performance of the obligations under this agreement
including, without limitation: (i) the cost of registration, countersignature and delivery of
the Warrants and the Underlying Shares, (ii) the fees and expenses of the Corporation’s

25

 

	 	 	auditors, counsel and any local counsel, transfer agent, engineers and other outside
consultants, (iii) the reasonable fees and expenses of any counsel employed by the Agent
(including GST thereon), (iv) the Agent’s reasonable out-of-pocket expenses and (v) all
filing fees and stock exchange listing fees relating to the Offering. Such amounts payable
to the Agent shall be paid by the Corporation at the Closing Time to the Agent in respect of
expenses and fees incurred to such date and in respect of expenses and fees incurred after
the Closing Time, such amounts shall be paid by the Corporation to the Agent upon receipt of
invoices from time to time from the Agent to the Corporation.

	11.	 	Survival of Representations and Warranties. All warranties, representations, covenants and
agreements herein contained or contained in any documents submitted pursuant to this agreement
and in connection with the transactions herein contemplated shall survive the Closing Date
and, as applicable, shall continue in full force and effect for the benefit of the Purchasers,
regardless of the Closing and regardless of any investigation which may be carried out by the
Purchasers or on their behalf for a period of two (2) years following the Closing Date.
	 
	12.	 	Indemnities. The Corporation hereby covenants and agrees to protect, indemnify and hold
harmless the Agent and its directors, officers, employees, solicitors and agents and each of
the other dealers appointed by the Agent and their respective directors, officers, employees,
solicitors and agents (individually, an “Indemnified Party” and, collectively, the
“Indemnified Parties”) from and against all losses (except for loss of profits), claims,
expenses, costs, damages or liabilities, whether joint or several (including the aggregate
amount paid in reasonable settlement of any actions, suits, proceedings or claims) which they
may suffer or incur by reason of the performance of professional services rendered in
connection with the Offering, caused by or arising directly or indirectly by reason of:

	 	(a)	 	the Corporation not complying with any requirement of Canadian Securities Laws
or regulatory requirements;
	 
	 	(b)	 	any breach of or default under any representation, warranty, covenant or
agreement of the Corporation set out herein or any other document to be delivered
pursuant hereto, or the Corporation’s failure to comply with any of its obligations
hereunder;
	 
	 	(c)	 	or any legal proceedings involving the Corporation

provided that the Corporation shall not be liable under this Section 12 to the extent that a
court of competent jurisdiction shall have determined by a final judgment that such loss,
claim, expense, cost, damage or liability resulted from any act or failure to act undertaken
or omitted to be undertaken by the Agent through its bad faith, negligence or wilful
misconduct.

If any action or claim shall be asserted against an Indemnified Party in respect of which
indemnity may be sought from the Corporation pursuant to the provisions hereof, or if any
potential claim contemplated by this section shall come to the knowledge of an Indemnified
Party, the Indemnified Party shall promptly notify the Corporation in writing

26

 

of the nature of such action or claim (provided that any failure to so notify shall not
affect the Corporation’s liability under this paragraph unless such delay has prejudiced the
defence to such claim). The Corporation shall be entitled but not obliged to participate in
or assume the defence thereof, provided, however that the defence shall be through legal
counsel acceptable to the Indemnified Party, acting reasonably and without undue delay. In
addition, the Indemnified Party shall also have the right to employ separate counsel in any
such action and participate in the defence thereof, and the fees and expense of such counsel
shall be borne by the Indemnified Party unless (i) the employment thereof has been
specifically authorized in writing by the Corporation; (ii) the Indemnified Party has been
advised by counsel acceptable to the Corporation, acting reasonably, that representation of
the Corporation and the Indemnified Party by the same counsel would be inappropriate due to
actual or potential differing interests between them; (iii) the Corporation has failed
within a reasonable time after receipt of such written notice to assume the defence of such
action or claim; or (iv) there are one or more legal defences available to the Indemnified
Party which are different from or in addition to those defences available to the
Corporation. It is understood and agreed that the Corporation shall not, in connection with
any suit in the same jurisdiction, be liable for the legal fees and expenses of more than
one separate legal firm to represent the Indemnified Parties. Neither party shall effect
any settlement of any such action or claim or make any admission of liability without the
written consent of the other party, such consent not to be unreasonably withheld or delayed.
The indemnity hereby provided for shall remain in full force and effect and shall not be
limited to or affected by any other indemnity in respect of any matters specified in this
section obtained by the Indemnified Party from any other person.

To the extent that any Indemnified Party is not a party to this Agreement, the Agent shall
obtain and hold the right and benefit of this section in trust for and on behalf of such
Indemnified Party.

The Corporation hereby waives any right that it may have of first requiring the Indemnified
Party to proceed against or enforce any other right, power, remedy or security or claim
payment from any other person before claiming under this Section 12 as well as any right to
contribution which it may have against the Indemnified Party.

The Corporation hereby consents to personal jurisdiction and service and venue in any court
in which any claim which is subject to indemnification hereunder is brought against the
Agent or any Indemnified Party and to the assignment of the benefit of this section to any
Indemnified Party for the purpose of enforcement provided that nothing herein shall limit
the Corporation’s right or ability to contest the appropriate jurisdiction or forum for the
determination of any such claims.

	13.	 	Contribution. In the event that, for any reason, the indemnity provided for in Section 12
hereof is illegal or unenforceable, each of the Agent and the Corporation shall contribute to
the aggregate of all losses, claims, costs, damages, expenses or liabilities (except loss of
profits in connection with the sale of the Offered Securities) of the nature provided for in
Section 12 hereof such that the Agent shall be responsible for that portion represented by the
percentage that the Agent’s Fee bears to the gross proceeds from the Offering and

27

 

	 	 	the Corporation shall be responsible for the balance, provided that in no event shall the
Agent be responsible for any amount in excess of the Agent’s Fee actually received by it.
Notwithstanding the foregoing, a person guilty of fraudulent misrepresentation, bad faith,
negligence or wilful misconduct shall not be entitled to contribution from any other party.
Any party entitled to contribution will, promptly after receiving notice of commencement of
any claim, action, suit or proceeding against such party in respect of which a claim for
contribution may be made against another party or parties under this section, notify such
party or parties from whom contribution may be sought. In no case shall such party from
whom contribution may be sought be liable under this agreement unless such notice shall have
been provided, but the omission to so notify such party shall not relieve the party from
whom contribution may be sought from any other obligation it may have otherwise than under
this section. The right to contribution provided in this section shall be in additional and
not in derogation of any other right to contribution which the Agent may have by statute or
otherwise by law.

	14.	 	Legal Proceedings. The Corporation agrees that if:

	 	(a)	 	any legal proceeding shall be brought against the Corporation or the Agent by
any governmental commission or regulatory authority or any stock exchange; or
	 
	 	(b)	 	any entity having regulatory authority, either domestic or foreign, shall
investigate the Corporation or the Agent,

and personnel of the Agent is required to testify in connection therewith or shall be
required to respond to procedures designed to discover information regarding the performance
of professional services rendered to the Corporation by the Agent, the Agent shall have the
right to employ its own counsel in connection therewith, and, unless it is finally
determined that the Agent was negligent or guilty of wilful misconduct and such negligence
or wilful misconduct was the cause of the legal proceeding or investigation or the Agent is
fined or found guilty of any offence or breach of laws, rules, regulations, policies,
by-laws or instruments by the party bringing such investigation or legal proceeding and the
conduct of the Agent was the cause of the legal proceeding or investigation, the Corporation
will pay the Agent a per diem amount for the services of the Agent based on the normal
consulting fees of the Agent together with such disbursements and reasonable out-of-pocket
expenses as may be incurred in connection therewith, including fees and disbursements of
counsel to the Agent incurred in connection with such testimony or participation.

	15.	 	Breach of Agreement. All terms and conditions of this agreement to be performed or satisfied
by the Corporation shall be construed as conditions and any breach of, or failure by the
Corporation to comply with, any term or condition of this agreement shall entitle the Agent,
on behalf of the Purchasers, to terminate its obligations to purchase the Offered Securities
by notice to that effect given to the Corporation prior to the Closing Time. In the event of
any such termination, there shall be no further liability on the part of the Corporation or
the Agent except in respect of any liability which may have arisen or may thereafter arise
under Sections 10, 12 or 13 hereof. The Agent may waive, in whole or in part, or extend the
time for compliance with, any terms and conditions

28

 

	 	 	without prejudice to its rights in respect of any other terms and conditions or any other
subsequent breach or non-compliance provided, however, that any waiver or extension must be
in writing and signed by the Agent in order to be binding upon it.

	16.	 	Advertisements. Subject to the prior consent of the Corporation, the Agent shall have the
right, at its own expense, to place such advertisement or advertisements relating to the sale
of the Offered Securities contemplated herein as the Agent may consider desirable or
appropriate and as may be permitted by applicable law. No such advertisement shall be placed
by the Agent which the Corporation deems shall be in violation of the securities laws of the
U.S. or Canada The Corporation and the Agent each agree that it will not make or publish any
advertisement in any media whatsoever relating to, or otherwise publicize, the transactions
provided for herein so as to result in any exemption from the prospectus and registration
requirements of Canadian Securities Laws, the U.S. Securities Act or other securities laws
being unavailable in respect of the sale of the Offered Securities to prospective purchasers.
	 
	17.	 	Notices. Any notice under this agreement shall be given in writing and either delivered or
telecopied to the party to receive such notice at the address or telecopy numbers indicated
below:

to the Corporation:

GeoGlobal Resources Inc.

200, 630-4th Avenue S. W.

Calgary AB T2P 0J9

Attention: Mr. Allan J. Kent, Executive Vice President and CFO

Fax: 403-777-9199

with copy to:

Gregory R. Harris, Lawyer

200 630 4th Avenue S.W.

Calgary AB T2P 0J9

Attention: Mr. Gregory R. Harris

Fax: 403-777-9199

to the Agent:

Jones, Gable & Company Limited

Suite 600, 110 Yonge Street

Toronto ON M5C 1T6

Attention: Mr. Robb Hindson

Fax: 416-365-8037

29

 

with a copy to:

Goodman and Carr LLP

200 King Street West, Suite 2300

Toronto ON M5H 3W5

Attention: Mr. Jay Goldman

Fax: 416-595-0567

or such other address or telecopy number as such party may hereafter designate by notice in writing
to the other party. If a notice is delivered, it shall be effective from the date of delivery and
if such notice is telecopied (with receipt confirmed), it shall be effective on the Business Day
following the date such notice is telecopied.

	18.	 	Time of the Essence. Time shall, in all respects, be of the essence hereof.
	 
	19.	 	United States Dollars. All references herein to money amounts are to lawful money of the
United States of America.
	 
	20.	 	Headings. The headings contained herein are for convenience only and shall not affect the
meaning or interpretation hereof.
	 
	21.	 	Singular and Plural, etc. Where the context so requires, words importing the singular number
include the plural and vice versa, and words importing gender shall include the masculine,
feminine and neuter genders.
	 
	22.	 	Entire Agreement. This agreement constitutes the only agreement between the parties with
respect to the subject matter hereof and shall supersede any and all prior negotiations,
understandings and agreements whether oral or written including, without limitation, a letter
agreement dated August 15, 2005 between the Corporation and the Agent. This agreement may be
amended or modified in any respect by written instrument only executed by the Corporation and
the Agent.
	 
	23.	 	Severability. The invalidity or unenforceability of any particular provisions of this
agreement shall not affect or limit the validity or enforceability of the remaining provisions
of this agreement.
	 
	24.	 	Governing Law. This agreement shall be governed by and construed in accordance with the laws
of the Province of Alberta and the laws of Canada applicable therein.
	 
	25.	 	Successors and Assigns. The terms and provisions of this agreement shall be binding upon and
enure to the benefit of the Corporation, the Agent and the Purchasers and their respective
successors and permitted assigns; provided that, except as provided herein or in the
Subscription Agreements, this agreement shall not be assignable by any party without the
written consent of the others.
	 
	26.	 	Further Assurances. Each of the parties hereto shall do or cause to be done all such acts and
things and shall execute or cause to be executed all such documents, agreements and

30

 

other instruments as may reasonably be necessary or desirable for the purpose of carrying
out the provisions and intent of this agreement.

	27.	 	Effective Date. This agreement is intended to and shall take effect as of the date first set
forth above, notwithstanding its actual date of execution or delivery.
	 
	28.	 	French Language. The parties hereto acknowledge that they have expressly required this
agreement and all notices, statements of account and other documents required or permitted to
be given or entered into pursuant hereto to be drawn up in the English language only. Les
parties reconnaissent avoir expressément demandées que la présente convention ainsique
toutavis, tout état de compte et tout autre document à être out pouvant être donné ou conclu
en vertudes dispositions des présdentes, soient rédigés en langue anglaise seulement.
	 
	29.	 	Counterparts. This agreement may be executed in any number of counterparts, which taken
together shall form one and the same agreement.

[The remainder of this page is intentionally left blank.]

31

 

If the Corporation is in agreement with the foregoing terms and conditions, please so indicate by
executing this letter where indicated and delivering a copy to the Agent.

	 	 	 	 	 
	 	 	JONES, GABLE & COMPANY LIMITED
	 
	 	 	 	 
	 

	 	Per:	 	 
	 

	 	 	 	 

     The foregoing is hereby accepted and agreed upon.

     DATED the                      day of September, 2005.

	 	 	 	 	 
	 	 	GEOGLOBAL RESOURCES INC.
	 
	 	 	 	 
	 

	 	Per:	 	 
	 

	 	 	 	 

32

 

SCHEDULE “A”

UNITED STATES SECURITIES LAWS

     As used in this Schedule A, capitalized terms used herein and not defined herein shall have
the meanings ascribed thereto in the agency agreement to which this Schedule is annexed and the
following terms shall have the meanings indicated:

	 	(a)	 	“Directed Selling Efforts” means directed selling efforts as that term is
defined in Regulation S. Without limiting the foregoing, but for greater clarity in
this Schedule, it means, subject to the exclusions from the definition of directed
selling efforts contained in Regulation S, any activity undertaken for the purpose of,
or that could reasonably be expected to have the effect of, conditioning the market in
the United States for any of the Offered Securities and includes the placement of any
advertisement in a publication with a general circulation in the United States that
refers to the offering of the Offered Securities;
	 
	 	(b)	 	“Distribution Compliance Period” means the one-year period that begins on the
later of (i) the date the Offered Securities are first offered to persons other than
distributors in reliance on Regulation S or (ii) the Closing Date; provided that, all
offers and sales by a distributor of an unsold allotment or subscription shall be
deemed to be made during the Distribution Compliance Period;
	 
	 	(c)	 	“Regulation S” means Regulation S adopted by the SEC under the U.S. Securities
Act;
	 
	 	(d)	 	“SEC” means the United States Securities and Exchange Commission;
	 
	 	(e)	 	“U.S. Securities Act” means the United States Securities Act of 1933, as
amended;
	 
	 	(f)	 	“U.S. Exchange Act” means the United States Securities Exchange Act of 1934, as
amended;
	 
	 	(g)	 	“U.S. Person” means a U.S. person as that term is defined in Regulation S; and
	 
	 	(h)	 	“United States” means the United States of America, its territories and
possessions, any state of the United States, and the District of Columbia.

Representations, Warranties and Covenants of the Agent

The Agent acknowledges that the Offered Securities have not been and will not be registered under
the U.S. Securities Act and may be offered and sold only in transactions exempt from or not subject
to the registration requirements of the U.S. Securities Act. The Agent represents, warrants and
covenants to the Corporation that:

	1.	 	It has not offered and sold, and will not offer or sell any Offered Securities, as part of
their initial distribution, except in an offshore transaction in accordance with Rule 903 of

 

 

	 	 	Regulation S. Accordingly, none of the Agent, its affiliates nor any person acting on its
or their behalf, has made or will make:

	 	(i)	 	any offer to sell or any solicitation of an offer to buy, any Offered
Securities to any person within the United States, any U.S. person, or for the
account or benefit of any U.S. person or person within the United States;
	 
	 	(ii)	 	any sale of Offered Securities to any purchaser unless such purchaser
is not a U.S. person and is not purchasing for the account or benefit of any U.S.
person and, at the time the buy order was or will have been originated, the
purchaser was outside the United States, or such Agent, affiliate or person acting
on behalf of either reasonably believed that such purchaser was outside the United
States; or
	 
	 	(iii)	 	any Directed Selling Efforts in the United States with respect to the
Offered Securities. It agrees that, at or prior to confirmation of the sale of the
Offered Securities, it will have sent to each distributor, dealer or person
receiving a selling concession, fee or other remuneration that purchases Offered
Securities from it during the Distribution Compliance Period a confirmation or
notice to substantially the following effect:

“The securities covered hereby have not been registered
under the U.S. Securities Act of 1933, as amended (the
“U.S. Securities Act”), and may not be offered or sold
within the United States or to, or for the account or
benefit of, U.S. persons (i) as part of their distribution
at any time or (ii) otherwise until one-year after the
later of the commencement of the offering and closing date,
except in either case in accordance with Regulation S under
the U.S. Securities Act. Terms used herein have the
meanings given to them in Regulation S.”

In addition, prior to the expiration of the Distribution Compliance Period, all subsequent
offers and sales of the Offered Securities by such Agent shall be made only in accordance
with the provisions of Rule 903 or 904 of Regulation S; pursuant to a registration of the
Offered Securities under the U.S. Securities Act; or pursuant to an available exemption from
the registration requirements of the U.S. Securities Act.

Such Agent agrees to obtain substantially identical undertakings from each member of any
banking and selling group formed in connection with the distribution of the Offered
Securities contemplated hereby and to comply with the offering restriction requirements of
Regulation S.

	2.	 	It has not entered and will not enter into any contractual arrangement with respect to the
distribution of the Offered Securities, except with its affiliates, any selling group members
or with the prior written consent of the Corporation. It shall require each selling group
member to agree, for the benefit of the Corporation, to comply with, and

A-2

 

	 	 	shall use its best efforts to ensure that each selling group member complies with, the same
provisions of this Schedule as apply to such Agent if such provisions applied to such
selling group member.

Representations, Warranties and Covenants of the Corporation

The Corporation represents, warrants, covenants and agrees that:

	1.	 	The Corporation is a “reporting issuer” within the meaning of Regulation S.
	 
	2.	 	The Corporation is not, and as a result of the sale of the Offered Securities contemplated
hereby will not be, an “investment company” as defined in the United States Investment Company
Act of 1940, as amended.
	 
	3.	 	Neither the Corporation nor any of its affiliates, nor any person acting on its or their
behalf, has made or will make: (A) any offer to sell, or any solicitation of an offer to buy,
any Offered Securities to any U.S. person or a person in the United States; or (B) any sale of
Offered Securities unless, at the time the buy order was or will have been originated, the
purchaser is not a U.S. person and is (i) outside the United States or (ii) the Corporation,
its affiliates, and any person acting on their behalf reasonably believe that the purchaser is
outside the United States.
	 
	4.	 	During the period in which the Offered Securities are offered for sale, neither it nor any of
its affiliates, nor any person acting on its or their behalf has made or will make any
Directed Selling Efforts in the United States.
	 
	5.	 	Except as hereinafter provided and except with respect to the offer and sale of the Offered
Securities offered hereby and offers and sales of common shares of the Corporation pursuant to
the Corporation’s employee benefit plans, the Corporation has not, for a period of six months
prior to the date hereof sold, offered for sale or solicited any offer to buy any of its
securities in the United States. Representatives of the Corporation, together with
representatives of Orion Securities Inc., met with potential investors regarding a possible
financing transaction during the period commencing July 7, 2005 through July 14, 2005. Such
persons discussed in those conversations in general terms the possibility of the Corporation
making a private sale of its securities. The discussion was conducted in broad terms and
specific terms of the securities and amounts of dollars to be raised in the transaction under
discussion were not discussed. These activities may be characterized as a solicitation of an
indication of an interest in pursuing a transaction. No specific offers were made in those
discussions. The discussions were terminated without any offers made or agreements
reached.

A-3

 

SCHEDULE “6(b)”

ENCUMBRANCES ON SECURITIES OF SUBSIDIARIES

None

 

 

SCHEDULE “6(r)”

COMMON SHARES ISSUABLE UNDER SECURITIES AND OBLIGATIONS

	 	 	 
	Type of Security/Obligation	 	Number of Common Shares Issuable
	Options outstanding under Stock Incentive Plan

	 	4,900,500 (a total of 8,000,000 shares
reserved for the grant of options)
	 
	 	 
	Warrants exercisable at $2,50
each expiring December 23, 2005

	 	785,500

 

 

SCHEDULE “6(z)”

INTEREST OF INSIDERS IN MATERIAL TRANSACTIONS

On August 29, 2003, pursuant to an agreement dated April 4, 2003 and amended August 29, 2003,
we completed a transaction with Mr. Roy and GeoGlobal Resources (India) Inc. (“GeoGlobal India”), a
corporation then wholly-owned by Mr. Roy, whereby we acquired from Mr. Roy all of the outstanding
capital stock of GeoGlobal India. In exchange for the outstanding capital stock of GeoGlobal
India, we issued 34.0 million shares of our Common Stock. Of the 34.0 million shares, 14.5 million
shares were issued and delivered to Mr. Roy at the closing of the transaction being August 29, 2003
and an aggregate of 19.5 million shares were held in escrow by an escrow agent. The terms of the
escrow provide for the release of the shares upon the occurrence of certain developments relating
to the outcome of oil and natural gas exploration and development activities conducted on our KG
Block. On August 27, 2004, 14.5 million shares were released to Mr. Roy from escrow upon the
actual commencement of a drilling program on the KG Block. The 5.0 million shares remaining in
escrow will be released only if a commercial discovery is declared on the KG Block. In addition to
our shares of Common Stock, we delivered to Mr. Roy a $2.0 million promissory note, of which
$500,000 was paid on the closing of the transaction on August 29, 2003, $500,000 was paid on
October 15, 2003, $500,000 was paid on January 15, 2004 and $500,000 was paid on June 30, 2004.
The note did not accrue interest. The note was secured by the outstanding stock of GeoGlobal India
which has subsequently been released. As a consequence of the transaction, Mr. Roy held as of the
closing of the transaction an aggregate of 34.0 million shares of our outstanding Common Stock, or
approximately 69.3% of the shares outstanding, assuming all shares held in escrow are released to
him. The terms of the transaction provide that Mr. Roy is to have the right to vote all 34.0
million shares following the closing, including the shares during the period they are held in
escrow. Accordingly, on the basis of his voting control, Mr. Roy may be deemed to be a “parent” of
our company.

On March 27, 2003, GeoGlobal India entered into a Participating Interest Agreement with Roy Group
(Mauritius) Inc. a company organized under the laws of Mauritius and wholly owned by Mr. Roy,
whereby, subject to Government of India consent, GeoGlobal India assigned to Roy Group (Mauritius)
Inc., one-half of its original 10% interest under the Production Sharing Contract for KG Block and
its rights under the Carried Interest Agreement with Gujarat State Petroleum Corporation Limited.
Under the terms of the agreement, until the Government of India consent is obtained, GeoGlobal
India retains the exclusive right to deal with the other parties to the Production Sharing Contract
and the Carried Interest Agreement and is entitled to make all decisions regarding the interest
assigned to Roy Group (Mauritius) Inc. and Roy Group (Mauritius) Inc. agreed to be bound by and
responsible for the actions taken by, obligations undertaken and costs incurred by GeoGlobal India
in regard to the Roy Group (Mauritius) Inc. interest and to be liable to GeoGlobal India for its
share of all costs, interests, liabilities and obligations arising out of or relating to the Roy
Group (Mauritius) Inc. interest. Roy Group (Mauritius) Inc. agreed to indemnify GeoGlobal India
against any and all costs, expenses, losses, damages or liabilities incurred by reason of Roy Group
(Mauritius) Inc.’s failure to pay the same. Subject to obtaining the government consent to the
assignment, Roy Group (Mauritius) Inc. is entitled to all income, receipts, credits,
reimbursements, monies receivable, rebates and other benefits in respect of its 5% interest which
relate to the Production Sharing Contract. GeoGlobal India has a right of set-off against sums
owing to Roy Group (Mauritius) Inc. any sums owing to GeoGlobal India by Roy Group (Mauritius)
Inc.. In the event that the Indian government consent is delayed or denied resulting in either Roy
Group (Mauritius) Inc. or GeoGlobal India being denied an economic benefit it would have realized
under the agreement, the parties agreed to amend the agreement or take other reasonable steps to
assure that an equitable result is achieved consistent with the parties intentions contained in the
agreement. In the event the consent is denied, neither party is entitled to assert any claim
against the other except as is specifically set forth in the agreement. We have not yet obtained
the consent of the Government of India.

 

 

Roy Group (Mauritius) Inc. further agreed in the Participating Interest Agreement that it would not
dispose of any interest in the agreement, its 5% interest, or the shares of Roy Group (Mauritius)
Inc. without first giving notice to GeoGlobal India of the transaction, its terms, including price,
and the identity of the intended assignee and any other material information, and GeoGlobal India
has the first right to purchase the interest proposed to be sold on the terms contained in the
notice to GeoGlobal India. GeoGlobal India is now our wholly-owned subsidiary corporation.

On August 29, 2003, we entered into a Technical Services Agreement with Roy Group (Barbados) Inc.,
a company organized under the laws of Barbados and wholly owned by Mr. Roy. Under the agreement,
Roy Group (Barbados) Inc. agreed to perform such geologic and geophysical duties as are assigned to
it by us. The term of the agreement extends through August 29, 2006 and continues for successive
periods of one year thereafter unless otherwise agreed by the parties or either party has given
notice that the agreement will terminate at the end of the term. Roy Group (Barbados) Inc.
receives a fee of $250,000 per year under the agreement and is reimbursed for authorized travel and
other out-of-pocket expenses. The agreement prohibits Roy Group (Barbados) Inc. from disclosing
any of our confidential information and from competing directly or indirectly with us for a period
of three years from August 29, 2003 with respect to any acquisition, exploration, or development of
any crude oil, natural gas or related hydrocarbon interests within the area of the country of
India. The agreement may be terminated by either party on 30 days’ prior written notice, provided,
however, the confidentiality and non-competition provisions will survive the termination. Roy
Group (Barbados) Inc. received $250,000 from us during 2004 under the terms of this agreement.

7

 

SCHEDULE “6(bb)”

ENCUMBRANCES

Noneexv10w2

 

Exhibit 10.2

GEOGLOBAL RESOURCES INC.

SUBSCRIPTION AGREEMENT

FOR CANADIAN AND OFFSHORE PURCHASERS

THE UNITS BEING OFFERED FOR SALE MAY ONLY BE PURCHASED BY

RESIDENTS OF THE PROVINCES OF BRITISH COLUMBIA, ALBERTA AND ONTARIO

AND JURISDICTIONS OUTSIDE OF NORTH AMERICA

INSTRUCTIONS

All Subscribers:

	1.	 	Complete and sign the Execution Pages of the Subscription Agreement.
	 
	2.	 	Complete and sign Schedule “B” attached to the Subscription Agreement.

British Columbia and Alberta Subscribers only:

Also complete and sign Schedule “C” attached to the Subscription Agreement and, if you are an
“accredited investor”, Appendix A attached thereto.

Ontario Subscribers only:

Also complete and sign Schedule “D” attached to the Subscription Agreement including Appendix A
attached thereto.

Offshore Subscribers only:

Also complete and sign Schedule “E” attached to the Subscription Agreement.

Return a completed and originally executed copy of this Subscription Agreement together with,
unless other arrangements acceptable to Jones, Gable & Company Limited have been made, a cheque,
bank draft, or money order (in U.S. funds) payable to Jones, Gable & Company Limited, or a wire
transfer to Jones, Gable & Company Limited, representing the aggregate Purchase Price by no later
than 10:00 a.m. (Toronto time) on August 31, 2005 to Jones, Gable & Company Limited at 700 West
Pender Street, Suite 400, Vancouver, British Columbia V6C 1C1, Attention: Nicole Cleve, Fax: (604)
685-9352 or, after August 26, 2005, to Jones, Gable & Company Limited at 555 Burrard Street, Suite
325, Vancouver, British Columbia V7X 1M7, Attention: Nicole Cleve, Fax: (604) 685-9352.

 

 

SUBSCRIPTION AGREEMENT

TO: Purchasers of Units of GeoGlobal Resources Inc. Dear

Sirs:

Re: Sale of Units

This Subscription Agreement is to confirm your agreement to purchase from GeoGlobal Resources Inc.
(the “Corporation”), subject to the terms and conditions set forth herein, that number of units
(the “Units”) of the Corporation set out above your name on the execution page hereof at a price of
U.S.$6.50 per Unit (the “Purchase Price”). Each Unit will consist of one Common Share (as defined
herein) (a “Unit Share”) and one-half of one Common Share purchase warrant of the Corporation (each
such whole Common Share purchase warrant, a “Warrant”).

Each whole Warrant shall entitle the holder to subscribe for one Common Share (a “Warrant Share”)
at an exercise price of U.S.$9.00 per Warrant Share at any time on or before (such period, the
“Warrant Term”) the day that is 24 months from the Closing Date (as defined herein), provided that
if the trading price of the Common Shares on the American Stock Exchange (or on any other stock
exchange on which the Common Shares are listed) is U.S.$12.00 or more for 20 consecutive trading
days, the Registration Statement (as defined herein) has been declared effective by the U.S.
Securities and Exchange Commission (the “SEC”) and the hold periods imposed upon the Underlying
Securities (as defined herein) pursuant to applicable Canadian Securities Laws (as defined herein)
have expired, the Warrant Term shall be automatically reduced and shall end on the date that is 30
days from the date of the initial issuance of a news release by the Corporation announcing the
change to the Warrant Term.

For each Unit that you purchase pursuant to this Subscription Agreement, you will also receive one
nontransferable right (a “Right” and all such Rights, together with all of the Units that you
purchase, the “Purchased Securities”) entitling you to receive 0.10 of one Unit (each such whole
Unit, a “Rights Unit”), for nominal consideration, in the event that a Registration Statement is
not filed with the SEC on or before 5:00 p.m. (Toronto time) on the date that is 60 days following
the Closing Date.

The Purchased Securities form part of a larger sale of up to an aggregate of 2,000,000 Units (and
associated Rights) (collectively, the “Offered Securities”). A term sheet with respect to the
offering of the Offered Securities is attached hereto as Schedule “A”. It is understood that less
than all the Offered Securities may be sold and the Offering (as defined herein) is not subject to
the sale of any minimum amount of the Offered Securities.

The proceeds of the Offered Securities will be immediately available to the Corporation upon
Closing (as defined herein).

	1.	 	Definitions

	 	(a)	 	Definitions: In this Subscription Agreement, unless the context otherwise
requires:

	 	(i)	 	Agency Agreement” means the agency agreement to be dated on or about the Closing Date to be entered into between the Agent and the
Corporation in respect of the Offering;
	 
	 	(ii)	 	“Agent” means Jones, Gable & Company Limited;

 

 

-2-

	 	(iii)	 	“Agreement” or “Subscription Agreement” means this subscription agreement as the same may be
amended, supplemented or restated from time to time;
	 
	 	(iv)	 	“Business Day” means a day on which Canadian chartered banks are open for the transaction of
regular business in the City of Toronto, Ontario;
	 
	 	(v)	 	“Closing” means the closing of the purchase and sale of the Offered Securities;
	 
	 	(vi)	 	“Closing Date” means September 7, 2005 or such other date or dates as the Corporation and the
Agent may agree upon;
	 
	 	(vii)	 	“Closing Time” has the meaning ascribed to it in section 4;
	 
	 	(viii)	 	“Common Shares” means the common shares of the Corporation as constituted on the date
hereof;
	 
	 	(ix)	 	“Compensation Options” has the meaning ascribed thereto in section 10;
	 
	 	(x)	 	“Corporation” means GeoGlobal Resources Inc., a corporation incorporated under the laws of
the state of Delaware, and includes any successor corporation thereto;
	 
	 	(xi)	 	“Information” means all information made publicly available by the Corporation or that the
Corporation causes to become publicly available regarding the Corporation, together with all
information regarding the Corporation prepared by the Corporation and provided to potential
purchasers of the Offered Securities, if any, and includes but is not limited to, all press
releases, material change reports and financial statements of the Corporation;
	 
	 	(xii)	 	“MI 45-103” means Multilateral Instrument 45-103 — Capital Raising Exemptions of the
Canadian Securities Administrators;
	 
	 	(xiii)	 	“Offered Securities” has the meaning ascribed thereto on the first page of this Agreement;
	 
	 	(xiv)	 	“Offering” means the offering of the Offered Securities pursuant to this Agreement and the
Agency Agreement;
	 
	 	(xv)	 	“Offering Jurisdictions” means the Provinces of British Columbia, Alberta, and Ontario, and
jurisdictions outside of North America;
	 
	 	(xvi)	 	“Person” means an individual, a firm, a corporation, a syndicate, a partnership, a trust, an
association, an unincorporated organization, a joint venture, an investment club, a government
or an agency or political subdivision thereof and every other form of legal or business entity
of whatsoever nature or kind;
	 
	 	(xvii)	 	“Purchase Price” has the meaning ascribed thereto on the first page of this Agreement;
	 
	 	(xviii)	 	“Purchased Securities” has the meaning ascribed thereto on the first page of this
Agreement;

 

-3-

	 	(xix)	 	“Registration Statement” means a registration statement with respect to the resale of (i)
the Unit Shares; (ii) the Warrant Shares; (iii) the Common Shares forming part of the Units
issuable upon exercise of the Compensation Options; and (iv) the Common Shares issuable upon
exercise of the Warrants forming part of the Units issuable upon exercise of the Compensation
Options;
	 
	 	(xx)	 	“Regulation S” means Regulation S adopted by the SEC under the Securities Act;
	 
	 	(xxi)	 	“Right”
has the meaning ascribed thereto on the first page of this Agreement;
	 
	 	(xxii)	 	“Rights Unit” has the meaning ascribed thereto on the first page of this Agreement;
	 
	 	(xxiii)	 	“SEC” has the meaning ascribed thereto on the first page of this Agreement; (xxiv)
“Securities Act” means the United States Securities Act of 1933, as amended;
	 
	 	(xxv)	 	“Securities Laws” means the securities legislation and regulations of, and the instruments,
policies, rules, orders, codes, notices and interpretation notes of the applicable securities
regulatory authority or applicable securities regulatory authorities of, the applicable
jurisdiction or jurisdictions collectively;
	 
	 	(xxvi)	 	“Stock Exchange” means the American Stock Exchange;
	 
	 	(xxvii)	 	“Subscriber” means the Person purchasing the Purchased Securities and whose name appears on
the execution page hereof;
	 
	 	(xxviii)	 	“Underlying Securities” means the Unit Shares and the Warrants comprising the Offered
Securities;
	 
	 	(xxix)	 	“Unit” has the meaning ascribed thereto on the first page of this Agreement;
	 
	 	(xxx)	 	“Unit Share” has the meaning ascribed thereto on the first page of this Agreement;
	 
	 	(xxxi)	 	“United States” means the United States of America, its territories and possessions, any
state of the United States, and the District of Columbia;
	 
	 	(xxxii)	 	“U.S. dollars” or “U.S.$” means lawful money of the United States of America;
	 
	 	(xxxiii)	 	“U.S. Person” means a U.S. person as that term is defined in Regulation S;
	 
	 	(xxxiv)	 	“Warrant” has
the meaning ascribed thereto on the first page of this Agreement;
	 
	 	(xxxv)	 	“Warrant Share” has the meaning ascribed thereto on the first page of this Agreement; and
	 
	 	(xxxvi)	 	“Warrant Term” has the meaning ascribed thereto on the first page of this Agreement.

 

-4-

	2.	 	Conditions of Purchase

In connection with your purchase of the Purchased Securities, the following documents are attached
hereto which you are requested to complete and sign as indicated and return together with an
executed copy of this Agreement and payment of the Purchase Price for the Purchased Securities in
accordance with this section 2 as soon as possible and in any event no later than 10:00 a.m.
(Toronto time) on August 31, 2005:

	 	(a)	 	Schedule “B”, with respect to registration and delivery instructions;
	 
	 	(b)	 	if you are a resident of, or are otherwise subject to the Securities Laws of, the
Province of British Columbia or Alberta, Schedule “C”, being, among other things, your
British Columbia or Alberta “accredited investor” certification or “family, close
friends and business associates” certification, as applicable;
	 
	 	(c)	 	if you are a resident of, or are otherwise subject to the Securities Laws of, the Province of
Ontario, Schedule “D”, being your Ontario “accredited investor” certification; and
	 
	 	(d)	 	if you are a resident of, or are otherwise subject to the Securities Laws of a
jurisdiction outside of North America, Schedule “E”, being your “offshore investor”
certification.

The obligation of the Corporation to sell the Purchased Securities to you is subject to, among
other things, the following conditions:

	 	(a)	 	you execute and return all documents required by the Securities Laws of the
Offering Jurisdictions and the policies of the Stock Exchange for delivery on your
behalf, including the forms set out in Schedules “B” to “E” attached hereto, as
applicable, to:

	 	 	 	 	 
	 

	 	 	 	(after August 26, 2006)
	 	 	Jones, Gable & Company Limited	 	Jones, Gable & Company Limited
	 	 	700 West Pender Street
	 

	 	Suite 325	 	 555 Burrard Street Suite 400
	 

	 	Vancouver, British Columbia	 	Vancouver, British Columbia
	 

	 	 V6C 1C1	 	V7X 1M7

Attention: Nicole Cleve

Fax: (604) 685-9352

	 	(b)	 	unless other arrangements with the Agent have been made, receipt of payment by the Subscriber
of the Purchase Price for the Purchased Securities by cheque, bank draft or money order in U.S.
dollars payable to Jones, Gable & Company Limited or a wire transfer in U.S. dollars to Jones,
Gable & Company Limited;
	 
	 	(c)	 	the representations and warranties made by you herein are true and correct when
made and are true and correct on the Closing Date with the same force and effect as if
they had been made on and as of such date;
	 
	 	(d)	 	all covenants, agreements and conditions contained in this Agreement to be
performed by you on or prior to the Closing Date shall have been performed or complied
with in all material respects; and

 

-5-

	 	(e)	 	all necessary regulatory approvals and other closing conditions shall have been
obtained or satisfied (or waived, if applicable) prior to the Closing Date.

By returning this Agreement you consent to the filing by the Corporation of all documents required
by the Securities Laws of the Offering Jurisdictions and the policies of the Stock Exchange.

If you are not subscribing for the Purchased Securities for your own account and you are not a
portfolio manager purchasing as agent for accounts which are fully managed by you, each beneficial
purchaser for whom you are contracting hereunder must be purchasing the Purchased Securities as
principal for its own account and (unless you are an authorized agent with power to sign on behalf
of the beneficial purchaser) must execute all documents required by the Securities Laws of the
Offering Jurisdictions and the policies of the Stock Exchange with respect to the Purchased
Securities being acquired by each such purchaser as principal. If you are signing as agent or
pursuant to a power of attorney for the Subscriber, you represent and warrant that you have
authority to bind the Subscriber.

You agree, and you agree to cause any purchaser for whom you are contracting hereunder, to comply
with all Securities Laws of the Offering Jurisdictions and with the policies of the Stock Exchange
concerning the purchase of, the holding of, and the resale restrictions applicable to, the
Purchased Securities.

You acknowledge that the Corporation and/or the Agent has the right to close the subscription books
at any time without notice and to accept or reject any subscription in its sole discretion.

	3.	 	Authorization of the Agent

The Subscriber irrevocably authorizes the Agent, in its discretion, to act as the Subscriber’s
representative at the Closing, and hereby appoints the Agent, with full power of substitution, as
its true and lawful attorney with full power and authority in the Subscriber’s place and stead:

	 	(a)	 	to receive certificates representing the Underlying Securities, to execute in
the Subscriber’s name and on its behalf all closing receipts and required documents, to
complete and correct any errors or omissions in any form or document provided by the
Subscriber in connection with the subscription for the Purchased Securities and to
exercise any rights of termination contained in the Agency Agreement;
	 
	 	(b)	 	to extend such time periods and to waive, in whole or in part, any representations, warranties, covenants or conditions for the Subscriber’s benefit contained in this Subscription Agreement, and the Agency Agreement or any ancillary or related document;
	 
	 	(c)	 	to terminate this Subscription Agreement if any condition precedent is not
satisfied, in such manner and on such terms and conditions as the Agent in its sole
discretion may determine; and
	 
	 	(d)	 	without limiting the generality of the foregoing, to negotiate, settle, execute,
deliver and amend the Agency Agreement.

The Subscriber shall have the benefit of the representations and warranties made by the Corporation
to the Agent and set forth in the Agency Agreement. Such representations and warranties shall form
an integral part of this Subscription Agreement and shall survive the closing of the purchase and
sale of the Offered Securities and shall continue in full force and effect for the benefit of the
Subscriber in accordance with the Agency Agreement.

 

-6-

	4.	 	The Closing

Delivery and payment for the Purchased Securities will be completed at the Closing on the Closing
Date at the offices of Goodman and Carr LLP at 200 King Street West, Suite 2300, Toronto, Ontario
M5H 3W5 at 10:00 a.m. (the “Closing Time”), Toronto time, or at such other location and/or such
other time as the Agent and the Corporation may agree upon. If, prior to the Closing Time, the
terms and conditions contained in this Subscription Agreement and the Agency Agreement have been
complied with to the satisfaction of the Agent, or waived by the Agent, the Agent shall deliver to
the Corporation all completed Subscription Agreements and payment of the aggregate Purchase Price
for all of the Offered Securities sold pursuant to the Agency Agreement against delivery by the
Corporation of certificates representing the Underlying Securities comprising the Offered
Securities sold pursuant to the Agency Agreement, and such other documentation as may be required
pursuant to the Subscription Agreement and the Agency Agreement.

If, prior to the Closing Time, the terms and conditions contained in this Subscription Agreement
(other than delivery by the Corporation of certificates representing the Underlying Securities) and
the Agency Agreement have not been complied with to the satisfaction of the Agent, or waived by it,
the Agent, the Corporation and the Subscriber will have no further obligations under this
Subscription Agreement.

Certificates representing the Underlying Securities will be available for delivery to the
Subscriber following the Closing.

For greater certainty, no separate certificate representing Units will be issued by the
Corporation. 5.

	 	 	 	Conditions of Closing

The following are certain of the conditions precedent to the Closing and to the purchase of the
Offered Securities by the Subscribers, which conditions the Corporation hereby covenants and agrees
to use its commercially reasonable efforts to fulfill within the time set out herein, and which
conditions may be waived in writing in whole or in part by the Agent:

	 	(i)	 	the Corporation shall have received all necessary approvals and consents, including all necessary
regulatory approvals and consents (including those of the Stock Exchange) required for the
completion of the transaction contemplated by this Subscription Agreement, and the Stock Exchange
shall have approved the listing thereon of the Unit Shares and Warrant Shares upon issuance
(including those issuable in connection with the Rights Units) and the Common Shares and Warrant
Shares underlying the Compensation Options, subject to the fulfillment of normal conditions;
	 
	 	(ii)	 	the representations and warranties of the Corporation contained herein and the
Agency Agreement shall be true and correct as of the Closing Time with the same force
and effect as if made at and as of the Closing Time after giving effect to the
transactions contemplated hereby;
	 
	 	(iii)	 	the Corporation shall have complied with all covenants, and satisfied all terms and conditions
contained herein and the Agency Agreement to be complied with and satisfied by the Corporation at
or prior to the Closing;
	 
	 	(iv)	 	the Agent shall not have previously terminated its obligations pursuant to the terms of the Agency Agreement; and

 

-7-

	 	(v)	 	the Subscriber shall have completed this Subscription Agreement in full and shall
have paid the Purchase Price for the Purchased Securities to the Corporation in the
manner contemplated in this Subscription Agreement.

	6.	 	Prospectus Exemptions

The sale of the Purchased Securities by the Corporation to you is conditional upon such sale being
exempt from the requirements as to the filing of a prospectus or a registration statement and as to
the preparation of an offering memorandum or similar document contained in any statute, regulation,
instrument, rule or policy applicable to the sale of the Purchased Securities or upon the issue of
such orders, consents or approvals as may be required to permit such sale without the requirement
of filing a prospectus or registration statement or delivering an offering memorandum or similar
document.

You acknowledge and agree that:

	 	(a)	 	AN INVESTMENT IN THE PURCHASED SECURITIES IS NOT WITHOUT RISK AND THE SUBSCRIBER
(AND ANY DISCLOSED BENEFICIAL SUBSCRIBER) MAY LOSE HIS, HER OR ITS ENTIRE INVESTMENT;

	 
	 	(b)	 	the Corporation may complete additional financings in the future in order to develop the business of the Corporation and fund its ongoing development, and such future financings may have a dilutive effect on current securityholders of the Corporation, including the Subscriber, but there are no assurances that any such financings will be available, on reasonable terms or at all, and if not available, the Corporation may be unable to fund its ongoing development;
	 
	 	(c)	 	you, or others for whom you are contracting hereunder, have been
independently advised as to or are aware of the restrictions with respect to trading in,
and the statutory hold period applicable to, the Underlying Securities and the Warrant
Shares (to the extent that such Warrant Shares are issued prior to the expiry of the
applicable hold period imposed by the Securities Laws of the jurisdiction in which you
reside or to which you are subject), that a suitable legend or legends will be placed on
the certificates representing the Underlying Securities and Warrant Shares (if
applicable) to reflect the applicable statutory hold period to which such securities are
subject and you are hereby advised that during such period the Underlying Securities and
Warrant Shares may not be resold in Canada, except pursuant to exemptions from the
prospectus requirements of applicable Securities Laws of any jurisdiction in Canada, and
notwithstanding the expiry of any applicable hold periods imposed by such Securities
Laws, you, or others for whom you are contracting hereunder, will not be able to resell
any of the Unit Shares or the Warrant Shares on the Stock Exchange (to the extent
applicable) until the Registration Statement is declared effective by the SEC; you, or
others for whom you are contracting hereunder, are aware that the Warrants will not be
listed for trading on the Stock Exchange at any time;
	 
	 	(d)	 	the Purchased Securities have not been registered under the Securities Act or any
applicable state securities laws and that the contemplated sale is being made in
reliance on an exemption for offshore offers and sales pursuant to Regulation S;
	 
	 	(e)	 	if you decide to offer, sell or otherwise transfer any of the Unit Shares or
Warrant Shares, such securities may be offered, sold or otherwise transferred only, (i)
to the Corporation, (ii) pursuant to registration under the Securities Act, (iii)
outside the United States in

 

-8-

accordance with Rule 904 of Regulation S or (iv) within the United States pursuant to an available
exemption from registration under the Securities Act, and in compliance with any applicable state
securities laws, provided you have furnished to the Corporation an opinion of counsel of recognized
standing in form and substance reasonable satisfactory to the Corporation prior to such offer, sale
or transfer;

	 	(f)	 	if you decide to offer, sell or otherwise transfer any of the Warrants, such securities may be
offered, sold or otherwise transferred only, (i) to the Corporation, (ii) pursuant to registration
under the Securities Act or (iii) outside the United States in accordance with Rule 904 of
Regulation S;
	 
	 	(g)	 	you will not engage in hedging transactions with regard to the Purchased Securities unless in
compliance with the Securities Act;
	 
	 	(h)	 	you consent to the Corporation making a notation on its records or giving instructions to any
transfer agent of the Purchased Securities in order to implement the restrictions on transfer
set forth and described herein;
	 
	 	(i)	 	you, or others for whom you are contracting hereunder, are solely responsible and the
Corporation and the Agent is not in any way responsible for compliance by you or any beneficial
purchaser for whom you are contracting hereunder with all applicable hold periods and resale
restrictions to which the Underlying Securities and Warrant Shares are subject;
	 
	 	(j)	 	you, or others for whom you are contracting hereunder, have not received or been provided with
a prospectus, offering memorandum (within the meaning of the Securities Laws of the Offering
Jurisdictions) or similar document and that your decision, or the decision of others for whom
you are contracting hereunder, to enter into this Agreement and to purchase the Purchased
Securities from the Corporation has not been based upon any verbal or written representation as
to fact or otherwise made by or on behalf of the Corporation or the Agent and that your
decision, or the decision of others for whom you are contracting hereunder, is based entirely
upon the Information and, if you and any others for whom you are contracting hereunder are
resident of, or subject to the laws of any of, the Provinces of British Columbia, Alberta or
Ontario, you and any others for whom you are contracting hereunder further acknowledge that the
sale of the Purchased Securities was not accompanied by any advertisement in printed media of
general and regular paid circulation including printed public media, radio, television or
telecommunications, including electronic display and the Internet;
	 
	 	(k)	 	the Agent and/or its directors, officers, employees, agents and representatives assume
no responsibility or liability of any nature whatsoever for the accuracy or adequacy of any
such publicly available information concerning the Corporation or as to whether all
information concerning the Corporation that is required to be disclosed or filed by the
Corporation under the Securities Laws has been so disclosed or filed;
	 
	 	(l)	 	as a consequence of the sale being exempt from the prospectus requirements of the Securities
Laws of the Offering Jurisdictions,

	 	(i)	 	certain protections, rights and remedies provided by the Securities Laws of the Offering Jurisdictions, including statutory rights
of rescission or damages, will not be available to you, or others for whom you are contracting hereunder,

 

-9-

	 	(ii)	 	you, or others for whom you are contracting hereunder, may not receive information that would
otherwise be required to be given under the Securities Laws of the Offering Jurisdictions, and
	 
	 	(iii)	 	the Corporation is relieved from certain obligations that would otherwise apply under the
Securities Laws of the Offering Jurisdictions;

	 	(m)	 	no Person has made any written or oral representation

	 	(i)	 	that any Person will resell or repurchase the Underlying Securities or the Warrant Shares;
	 
	 	(ii)	 	that any Person will refund the Purchase Price or exercise price of the Warrants; or
	 
	 	(iii)	 	as to the future price or value of the Underlying Securities or Warrant Shares;

	 	(n)	 	no securities commission or similar regulatory authority has reviewed or passed
on the merits of the Offered Securities;
	 
	 	(o)	 	there is no government or other insurance covering the Offered Securities;
	 
	 	(p)	 	there are risks associated with the purchase of the Offered Securities;
	 
	 	(q)	 	there are restrictions on the Purchaser’s ability to resell the Offered Securities and it is the
responsibility of the Purchaser to find out what those restrictions are and to comply with them
before selling the Offered Securities; and
	 
	 	(r)	 	the Corporation has advised the Purchaser that the Corporation is relying on an
exemption from the requirements to provide the Purchaser with a prospectus and to sell
securities through a person registered to sell securities under the Securities Act
(British Columbia) and, as a consequence of acquiring securities pursuant to this
exemption, certain protections, rights and remedies provided by the Securities Act
(British Columbia), including statutory rights of recission or damages, will not be
available to the purchaser.

This subscription may be accepted in whole or in part and the right is reserved to the Corporation
and/or the Agent to allot to any Subscriber less than the amount of Offered Securities subscribed
for hereunder. Confirmation of acceptance or rejection of this Agreement will be forwarded to you
promptly after the acceptance or rejection of this Agreement by the Corporation. If this Agreement
is rejected in whole, you understand that any cheques, bank drafts, money orders or wire transfers
delivered by you to the Agent representing the Purchase Price for the Purchased Securities will be
promptly returned to you without interest. If this Agreement is accepted only in part, you
understand that a cheque representing the portion of the Purchase Price for that number of Offered
Securities which is not accepted by the Corporation will be promptly delivered to you, without
interest.

By your acceptance of this Agreement, you and any others for whom you are contracting hereunder
represent, warrant and certify to the Corporation and the Agent (which representations and
warranties shall survive the Closing) that:

 

-10-

	A.	 	General:

	 	(a)	 	THE SUBSCRIBER (AND ANY DISCLOSED BENEFICIAL SUBSCRIBER) HAS KNOWLEDGE IN FINANCIAL AND
BUSINESS AFFAIRS, IS CAPABLE OF EVALUATING THE MERITS AND RISKS OF AN INVESTMENT IN THE
PURCHASED SECURITIES, AND IS ABLE TO BEAR THE ECONOMIC RISK OF SUCH INVESTMENT EVEN IF THE
ENTIRE INVESTMENT IS LOST;
	 
	 	(b)	 	You are and any beneficial purchaser for whom you are contracting hereunder is resident, or if not
an individual, has a head office, in the jurisdiction set out under the heading “address” above
your signature set forth on the execution page of this Agreement which address is your residence or
place of business, or the residence or place of business of any beneficial purchaser for whom you
are contracting hereunder, and such address was not obtained or used solely for the purpose of
acquiring the Purchased Securities and you and any others for whom you are contracting hereunder
were not offered the Offered Securities, and did not execute this Agreement, in the United States
of America.
	 
	 	(c)	 	You make, or any other beneficial purchaser for whom you are contracting hereunder makes, the
representations, warranties and covenants set out in Schedule “C”, “D” or “E” to this
Agreement, as applicable, and you or any such other beneficial purchaser for whom you are
contracting hereunder may avail yourselves of one or more of the categories of prospectus
exempt purchasers listed in Schedule “C”, “D” or “E” to this Agreement, respectively.
	 
	 	(d)	 	You are, and any other beneficial purchaser for whom you are contracting hereunder is, solely
responsible for obtaining such advice concerning the tax consequences of your investment in
the Purchased Securities and you are not relying on the Corporation or the Agent for advice
concerning such tax consequences.
	 
	 	(e)	 	If you are an individual, you have attained the age of majority in the jurisdiction in which
you are resident and have the legal capacity and competence to enter into and be bound by this
Agreement and to perform the covenants and obligations herein.
	 
	 	(f)	 	If you are not an individual (i) you have the legal capacity to authorize, execute and deliver this
Agreement, and (ii) the individual signing this Agreement has been duly authorized to execute and
deliver this Agreement.
	 
	 	(g)	 	Other than the Agent, there is no person acting or purporting to act in connection with the
transactions contemplated herein who is entitled to any brokerage or finder’s fee. If any person
establishes a claim that any fee or other compensation is payable in connection with this
subscription for the Purchased Securities, the Subscriber covenants to indemnify and hold harmless
the Corporation and the Agent with respect thereto and with respect to all costs reasonably
incurred in the defence thereof.
	 
	 	(h)	 	None of the funds being used to purchase the Purchased Securities are to your knowledge
proceeds obtained or derived directly or indirectly as a result of illegal activities.
	 
	 	(i)	 	You are, and any beneficial purchaser for whom you are contracting hereunder is, at
arms©-length, within the meaning of the Securities Laws of the Offering Jurisdictions and the
policies of the Stock Exchange, with the Corporation (other than in the event that you or such
beneficial purchaser is deemed to be a non-arms’ length party solely as a result of

 

-11-

	 	 	 	holding Common Shares to which are attached greater than 10% of all of the voting rights attaching
to all of the issued and outstanding voting securities of the Corporation).
	 
	 	(j)	 	You are not, and any beneficial purchaser for whom you are contracting hereunder is not, a
“promoter” of the Corporation within the meaning of the Securities Laws of the Offering
Jurisdictions.
	 
	 	(k)	 	Legal counsel retained by the Corporation (the “Corporation©s Counsel”) is acting as counsel
to the Corporation and not as counsel to you. Legal counsel retained by the Agent (the
“Agent’s Counsel”) is acting as counsel to the Agent and not as counsel to you. The
relationship of the Corporation©s Counsel and the Agent’s Counsel with you is limited solely
to responding to any questions which you may have regarding the terms of the documents to be
delivered in connection with this Agreement.
	 
	 	(l)	 	If you are, or any beneficial purchaser for whom you are contracting hereunder is, a resident of an
Offering Jurisdiction and cannot otherwise satisfy any of the requirements set forth in this
section 6, you are, or any beneficial purchaser for whom you are contracting hereunder is,
acquiring the Purchased Securities pursuant to and in compliance with an exemption from the
prospectus requirements of the Securities Laws of the jurisdiction of residence and will provide
the Corporation and the Agent, on request, whether before or after the Closing Date, with evidence
of such compliance.
	 
	 	(m)	 	You are, or any beneficial purchaser for whom you are contracting hereunder is, capable of
assessing the proposed investment in the Purchased Securities as a result of your financial or
investment experience or as a result of advice received from a registered person other than the
Corporation, the Agent or any affiliate thereof and you are, or any beneficial purchaser for whom
you are contracting hereunder is, able to bear the economic loss of the investment in the Purchased
Securities.
	 
	 	(n)	 	You are not a U.S. Person or a person in the United States and are not and will not be
purchasing Offered Securities for the account or benefit of any U.S. Person or a Person in the
United States. The Purchased Securities were not offered to you in the United States and this
Agreement has not been signed in the United States.
	 
	 	(o)	 	The Purchased Securities to be issued hereunder are not being purchased with knowledge of any
material fact about the Corporation that has not been generally disclosed.
	 
	 	(p)	 	You and any beneficial purchaser for whom you are contracting hereunder acknowledge that no agency,
governmental authority, securities commission or similar regulatory body, stock exchange or other
entity has reviewed, passed on or made any finding or determination as to the merit for investment
of the Underlying Securities or Warrant Shares nor have any such agencies or governmental
authorities made any recommendation or endorsement with respect to such securities.
	 
	 	(q)	 	This Agreement has been duly executed and delivered and, when accepted by the Corporation, will
constitute your legal, valid and binding obligation enforceable against you in accordance with the
terms hereof or, if you are acting as agent for a beneficial purchaser, will constitute a legal,
valid and binding obligation against such beneficial purchaser in accordance with the terms hereof.

 

-12-

	 	(r)	 	If you are contracting hereunder as trustee or agent (including, for greater certainty, a
portfolio manager or comparable adviser) for one or more beneficial purchasers, you are
authorized to execute and deliver this Agreement and all other necessary documentation in
connection with the subscription made on behalf of such beneficial purchaser or beneficial
purchasers and this Agreement has been authorized, executed and delivered on behalf of such
beneficial purchaser or beneficial purchasers, and you acknowledge that the Corporation and
the Agent may be required by law to disclose the identity of each beneficial purchaser for
whom you are contracting hereunder.
	 
	 	(s)	 	The execution and delivery of this Agreement, the performance and compliance with the terms
hereof, the purchase of the Purchased Securities and the completion of the transactions
described herein by you will not result in any material breach of, or be in conflict with or
constitute a material default under, or create a state of facts which, after notice or lapse
of time, or both, would, if you are not or any beneficial purchaser for whom you are
contracting hereunder is not an individual, constitute a material default under any term or
provision of your constating documents, by-laws or resolutions or the constating documents,
by-laws or resolutions of any beneficial purchaser for whom you are contracting hereunder, as
the case may be, the Securities Laws or any other laws applicable to you or any beneficial
purchaser for whom you are contracting hereunder, any agreement to which you are or any
beneficial purchaser for whom you are contracting hereunder is a party, or any judgment,
decree, order, statute, rule or regulation applicable to you or any beneficial purchaser for
whom you are contracting hereunder.
	 
	 	(t)	 	The Subscriber, on its own behalf and, if applicable, on behalf of each beneficial purchaser
for whom the Subscriber is contracting hereunder, acknowledges and consents to the fact that
the Corporation and the Agent are collecting the personal information of the Subscriber, or
that of each beneficial purchaser for whom the Subscriber is contracting hereunder, for the
purpose of completing this Agreement. The Subscriber, on its own behalf and, if applicable, on
behalf of each beneficial purchaser for whom the Subscriber is contracting hereunder,
acknowledges and consents to the Corporation and the Agent retaining such personal information
for as long as permitted or required by law or business practices. The Subscriber, on its own
behalf and, if applicable, on behalf of each beneficial purchaser for whom the Subscriber is
contracting hereunder, further acknowledges and consents to the fact that the Corporation and
the Agent may be required by Securities Laws, the rules and policies of any stock exchange or
the rules of the Investment Dealers Association of Canada to provide regulatory authorities
with any personal information provided by the Subscriber in this Agreement. The Subscriber
represents and warrants that it has the authority to provide the consents and acknowledgements
set out in this paragraph on behalf of each beneficial purchaser for whom the Subscriber is
contracting hereunder.
	 
	 	(u)	 	The Subscriber, and each beneficial purchaser for whom it is contracting hereunder, shall
execute, deliver, file and otherwise assist the Corporation and the Agent with filing all
documentation required by the applicable Securities Laws to permit the subscription for and
issuance of the Purchased Securities.
	 
	 	(v)	 	The Corporation is relying on the representations, warranties and covenants contained herein
and in the applicable Schedules attached hereto to determine the Subscriber’s eligibility to
subscribe for the Purchased Securities under applicable Securities Laws and the Subscriber
agrees to indemnify the Corporation, the Agent and each of their respective directors and
officers against all losses, claims, costs, expenses, damages or

 

-13-

	 	 	 	liabilities which any of them may suffer or incur as a result of or arising from
reliance thereon. The Subscriber undertakes to immediately notify the Corporation of
any change in any statement or other information relating to the Subscriber set forth
in such applicable Schedules which takes place prior to the Closing Time.

	B.	 	British Columbia: If you are resident in, or are otherwise subject to the Securities
Laws of, the Province of British Columbia, then:

	 	(a)	 	One of subparagraph (i), (ii), (iii) or (iv) below is
applicable to you:

	 	 	 	(i)

	 	A.	 	in the case of the purchase by you of the
Purchased Securities as principal, you are purchasing the Purchased
Securities as principal for your own account, and not for the benefit of
any other Person, or you are deemed under the Securities Laws of the
Province of British Columbia to be purchasing the Purchased Securities
as principal, and in either case you are purchasing the Purchased
Securities for investment only and not with a view to the resale or
distribution of any or all of the Purchased Securities (including any
Warrant Shares issuable upon the exercise of any Warrants comprising, in
part, the Purchased Securities) and you will be purchasing a sufficient
number of Offered Securities so that you have an aggregate acquisition
cost for such Offered Securities of not less than $97,000 and you are
not a corporation, syndicate, partnership or other form of incorporated
or unincorporated entity or organization created solely, or used
primarily, to permit the purchase of the Purchased Securities without a
prospectus by groups of individuals whose individual share of the
aggregate acquisition cost of such Purchased Securities is less than
$97,000, or if you are created solely, or used primarily, for such
purpose and you are a corporation, partnership, syndicate or other form
of unincorporated entity, the share or any portion of each shareholder,
member or partner of the partnership, syndicate or other unincorporated
entity, as the case may be, of the aggregate acquisition cost to you is
not less than $97,000; or
	 
	 	B.	 	in the case of the purchase by you of the
Purchased Securities as agent for a disclosed principal, such disclosed
principal is purchasing as principal for its own account and not for the
benefit of any other Person and is purchasing for investment only and
not with a view to the resale of the Purchased Securities (including any
Warrant Shares issuable upon the exercise of any Warrants comprising, in
part, the Purchased Securities) and no other Person will have a
beneficial interest in the Purchased Securities, you are purchasing a
sufficient number of Offered Securities so that such disclosed principal
has an aggregate acquisition cost for such Offered Securities of not
less than $97,000, such disclosed principal is resident in the Province
of British Columbia, and you are an agent with proper authority to
execute all documents required in connection with the purchase on behalf
of the disclosed principal and such disclosed principal on whose behalf
you are acting is not a corporation, syndicate, partnership or other
form of incorporated or unincorporated entity or organization created
solely, or used primarily, to

 

-14-

	 	 	 	permit the purchase of the Purchased Securities without a prospectus by groups of
individuals whose individual share of the aggregate acquisition cost of such
Purchased Securities is less than $97,000, or if such disclosed principal is
created solely, or used primarily, for such purpose and such disclosed principal
is a corporation, partnership, syndicate or other form of unincorporated entity,
the share or any portion of each shareholder, member or partner of the
partnership, syndicate or other unincorporated entity, as the case may be, of the
aggregate acquisition cost to such disclosed principal is not less than $97,000.

	 	(ii)	 	You are purchasing the Purchased Securities as principal and you are designated as an “exempt
purchaser” by the British Columbia Securities Commission.
	 
	 	(ii)	 	You are purchasing the Purchased Securities as principal for your own account, and not
for the benefit of any other Person and not with a view to the resale of the Purchased
Securities (including any Warrant Shares issuable upon the exercise of any Warrants comprising,
in part, the Purchased Securities) and no other Person will have a beneficial interest in the
Purchased Securities and you are one or more of:

	 	A.	 	a “director”, “senior officer” or “control person” of the Corporation, or of an
“affiliate” of the Corporation (within the meaning of these terms as used in applicable
Securities Laws);
	 
	 	B.	 	a “spouse” (within the meaning of such term as used in applicable Securities Laws),
parent, grandparent, brother, sister or child of a director, senior officer or control
person of the Corporation, or of an affiliate of the Corporation;
	 
	 	C.	 	a parent, grandparent, brother, sister or child of the spouse of a director, senior
officer or control person of the Corporation, or of an affiliate of the Corporation;
	 
	 	D.	 	a “close personal friend” (within the meaning of such term as used in applicable
Securities Laws) (by reason of the fact that you have directly known such individual well
enough and for a sufficient period of time and in a sufficiently close relationship (where
such relationship is direct and extends beyond being a relative or a member of the same
organization, association or religious group or a client, customer or former client or
customer or being a close personal friend of such individual) to be in a position to assess
the capabilities and the trustworthiness of such individual) of a director, senior officer
or control person of the Corporation, or of an affiliate of the Corporation;
	 
	 	E.	 	a “close business associate” (within the meaning of such term as used in applicable
Securities Laws) (by reason of the fact that you have had direct sufficient prior business
dealings with such individual (where such relationship is direct and extends beyond being a
casual business associate or a Person introduced or solicited for the purpose of purchasing
Offered Securities or a client, customer or former client or customer or being a close
business associate of a close business associate

 

-15-

	 	 	 	of such individual) to be in a position to assess the capabilities and
trustworthiness of such individual) of a director, senior officer or control
person of the Corporation, or of an affiliate of the Corporation;
	 
	 	F.	 	a “founder” (within the meaning of such term as used in applicable Securities
Laws) of the Corporation or a spouse, parent, grandparent, brother, sister, child,
close personal friend or close business associate of a founder of the Corporation;
	 
	 	G.	 	a parent, grandparent, brother, sister or child of the spouse of a founder of
the Corporation;
	 
	 	H.	 	a person or company of which a majority of the voting securities are
beneficially owned by, or a majority of the directors are, persons or companies
described in clauses 6B(a)(iii)(A) to 6B(a)(iii)(G) above; or
	 
	 	I.	 	a trust or estate of which all of the beneficiaries or a majority of the
trustees are persons or companies described in clauses 6B(a)(iii)(A) to 6B(a)(iii)(G)
above; and

	 	 	 	you have concurrently executed and delivered a certificate in the form attached as Schedule
“C” attached hereto.
	 
	 	(iv)	 	You are either purchasing the Purchased Securities:

	 	A.	 	As principal for your own account, and not for the benefit of any other
Person and not with a view to the resale of the Purchased Securities (including any
Warrant Shares issuable upon the exercise of any Warrants comprising, in part, the
Purchased Securities) and you are an “accredited investor” within the meaning of MI
45-103; or
	 
	 	B.	 	as agent for a beneficial principal disclosed on the execution page of this
Agreement, and you are an agent or trustee with proper authority to execute all
documents required in connection with the purchase of the Purchased Securities on
behalf of such disclosed principal and such disclosed principal for whom you are
contracting hereunder is an “accredited investor” within the meaning of MI 45-103 and
is purchasing as principal for its own account, and not for the benefit of any other
Person, and is purchasing for investment only and not with a view to resale or
distribution of the Purchased Securities (including any Warrant Shares issuable upon
the exercise of any Warrants comprising, in part, the Purchased Securities) ; and

	 	 	 	you have concurrently executed and delivered a certificate in the form attached as Schedule
“C” hereto.

	 	(b)	 	The provisions of paragraphs (a)(i) to (a)(iv), as applicable, of this subsection 6B will be true and correct both as of the date of
execution of this Agreement and as of the Closing Date.

 

-16-

	C.	 	Alberta: If you are resident in the Province of Alberta, then:

	 	(a)	 	One of subparagraph (i), (ii), (iii) or (iv) below is applicable to you:

	 	 	 	(i)

	 	A.	 	in the case of the purchase by you of the
Purchased Securities as principal, you are purchasing the Purchased
Securities as principal for your own account, and not for the benefit of
any other Person, or you are deemed under the Securities Laws of the
Province of Alberta to be purchasing the Purchased Securities as
principal, and in either case you are purchasing the Purchased
Securities for investment only and not with a view to the resale of the
Purchased Securities (including any Warrant Shares issuable upon the
exercise of any Warrants comprising, in part, the Purchased Securities)
and will be purchasing a sufficient number of Offered Securities so that
you have an aggregate acquisition cost for such Offered Securities of
not less than $97,000 and if you are a corporation, syndicate,
partnership or other form of association, you pre-existed the offering
of the Offered Securities and have a bona fide purpose other than the
making of an investment in the Offered Securities or, if you were
created to make such investment, the individual share of the aggregate
acquisition cost to each participant in you is not less than $97,000; or
	 
	 	B.	 	in the case of the purchase by you of the
Purchased Securities as agent for a disclosed principal, such disclosed
principal is purchasing as principal for its own account, and not for
the benefit of any other Person and is purchasing for investment only
and not with a view to the resale or distribution of all or any of the
Purchased Securities (including any Warrant Shares issuable upon the
exercise of any Warrants comprising, in part, the Purchased Securities),
a sufficient number of Offered Securities so that such disclosed
principal has an aggregate acquisition cost for such Offered Securities
of not less than $97,000, such disclosed principal is resident in the
Province of Alberta, you are an agent with proper authority to execute
all documents required in connection with the purchase on behalf of such
disclosed principal and if such disclosed principal is a corporation,
syndicate, partnership or other form of association, such disclosed
principal pre-existed the offering of the Offered Securities and has a
bona fide purpose other than the making of an investment in the Offered
Securities or, if such disclosed principal was created to make such
investment, the individual share of the aggregate acquisition cost to
each participant in such disclosed principal is not less than $97,000.

	 	(ii)	 	You are purchasing the Purchased Securities as principal and
you are recognized as an “exempt purchaser” by the Alberta Securities
Commission.
	 
	 	(iii)	 	You are purchasing the Purchased Securities as principal for your own account and not for the
benefit of any other Person, and not with a view to the resale of the Purchased Securities
(including any Warrant Shares issuable upon the exercise of any Warrants comprising, in part,
the Purchased Securities) and no

 

-17-

	 	 	 	other Person will have a beneficial interest in the Purchased Securities and you are one or more
of:

	 	A.	 	a “director”, “senior officer” or “control person” of the Corporation, or of an “affiliate”
of the Corporation (within the meaning of these terms as used in applicable Securities Laws);
	 
	 	B.	 	a “spouse” (within the meaning of such term as used in applicable Securities Laws), parent,
grandparent, brother, sister or child of a director, senior officer or control person of the
Corporation, or of an affiliate of the Corporation;
	 
	 	C.	 	a parent, grandparent, brother, sister or child of the spouse of a director, senior officer
or control person of the Corporation, or of an affiliate of the Corporation;
	 
	 	D.	 	a “close personal friend” (within the meaning of such term as used in applicable Securities
Laws) (by reason of the fact that you have directly known such individual well enough and for
a sufficient period of time and in a sufficiently close relationship (where such relationship
is direct and extends beyond being a relative or a member of the same organization,
association or religious group or a client, customer or former client or customer or being a
close personal friend of such individual) to be in a position to assess the capabilities and
the trustworthiness of such individual) of a director, senior officer or control person of the
Corporation, or of an affiliate of the Corporation;
	 
	 	E.	 	a “close business associate” (within the meaning of such term as used in applicable
Securities Laws) (by reason of the fact that you have had direct sufficient prior business
dealings with such individual (where such relationship is direct and extends beyond being a
casual business associate or a Person introduced or solicited for the purpose of purchasing
Offered Securities or a client, customer or former client or customer or being a close
business associate of a close business associate of such individual) to be in a position to
assess the capabilities and trustworthiness of such individual) of a director, senior officer
or control person of the Corporation, or of an affiliate of the Corporation;
	 
	 	F.	 	a “founder” (within the meaning of such term as used in applicable Securities Laws) of the
Corporation or a spouse, parent, grandparent, brother, sister, child, close personal friend or
close business associate of a founder of the Corporation;
	 
	 	G.	 	a parent, grandparent, brother, sister or child of the spouse of a founder of the
Corporation;
	 
	 	H.	 	a person or company of which a majority of the voting securities are beneficially owned by,
or a majority of the directors are, persons or companies described in clauses 6C(a)(iii)(A) to
6C(a)(iii)(G) above; or

 

-18-

	 	I.	 	a trust or estate of which all of the
beneficiaries or a majority of the trustees are persons or companies
described in clauses 6C(a)(iii)(A) to 6C(a)(iii)(G) above; and

	 	 	 	you have concurrently executed and delivered a certificate in the form
attached as Schedule “C” hereto.
	 
	 	(iv)	 	You are either purchasing the Purchased Securities:

	 	A.	 	as principal for your own account and not for the
benefit of any other Person, and not with a view to the resale of the
Purchased Securities (including any Warrant Shares issuable upon the
exercise of any Warrants comprising, in part, the Purchased Securities)
and you are an “accredited investor” within the meaning of MI 45-103; or
	 
	 	B.	 	as agent for a beneficial principal disclosed on
the execution page of this Agreement, and you are an agent or trustee
with proper authority to execute all documents required in connection
with the purchase on behalf of such disclosed principal and such
disclosed principal for whom you are contracting hereunder is an
“accredited investor” within the meaning of MI 45-103 and is purchasing
as principal for its own account, and not for the benefit of any other
Person and is purchasing, for investment only and not with a view to
resale or distribution of the Purchased Securities (including any
Warrant Shares issuable upon the exercise of any Warrants comprising, in
part, the Purchased Securities); and

	 	 	 	you have concurrently executed and delivered a certificate in the form
attached as Schedule “C” hereto.

	 	(b) 	 	The provisions of subparagraphs (a)(i) to (a)(iv), as applicable, of this subsection 6C will be true and correct both as of the date
of execution of this Agreement and as of the Closing Date.

	D.	 	Ontario: If you are resident in, or are otherwise subject to the Securities Laws of,
the Province of Ontario, then:

	 	(a)	 	You are either purchasing the Purchased Securities:

	 	(i)	 	as principal for your own account and not for the benefit of any other Person and you are an
“accredited investor” within the meaning of Rule 45-501 of the Ontario Securities Commission; or
	 
	 	(ii)	 	as agent for a beneficial principal disclosed on the execution page of this Agreement, and
you are an agent or trustee and each disclosed principal for whom you are acting is an
“accredited investor” within the meaning of Rule 45501 of the Ontario Securities Commission
and is purchasing as principal for its own account and not for the benefit of any other
Person; and

	 	 	 	you have concurrently executed and delivered a certificate in the form attached as Schedule “D”
hereto.

 

-19-

	 	(b)	 	The provisions of paragraph (a) of this subsection 6D will be true and correct both as of the
date of execution of this Agreement and as of the Closing Date.

	E.	 	Offshore: If you are resident in, or are otherwise subject to the Securities Laws
of, a jurisdiction outside of North America, then:

	 	(a)	 	You have concurrently executed and delivered a certificate in the form attached
as Schedule “E” hereto; and
	 
	 	(b)	 	The provisions of Schedule “E” hereto will be true and correct both as of the date of
execution of this Agreement and as of the Closing Date.

	F.	 	Acknowledgement: You acknowledge that the foregoing representations and
warranties are made with the intent that they may be relied upon in determining your
eligibility, or, if applicable, the eligibility of any beneficial purchaser for whom you may
be contracting hereunder, to purchase the Purchased Securities under applicable Securities
Laws. You further agree that by accepting the Purchased Securities on the Closing Date you
shall be representing and warranting that the foregoing representations and warranties are
true and correct as at the Closing Date, with the same force and effect as if they had been
made by you on such date and that they will survive the purchase by you of the Purchased
Securities and will continue in full force and effect notwithstanding any subsequent
disposition by you of the Purchased Securities.

	7.	 	Legends:

	 	(a)	 	You acknowledge that upon the issuance of the Underlying Securities and the
Warrant Shares (to the extent that such Warrant Shares are issued prior to the expiry of
the applicable hold period), the certificates representing the Underlying Securities and
the Warrant Shares will bear the following legend:
	 
	 	 	 	“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT
TRADE THE SECURITY BEFORE [the date which is four months and one day after the
Closing Date will be inserted].”
	 
	 	(b)	 	You understand and acknowledge that until such time as the same is no longer required under
applicable requirements of the Securities Act or applicable state securities laws, certificates
representing Units Shares and Warrant Shares, and all certificates issued in exchange therefor
or in substitution thereof, shall bear the following legend:
	 
	 	 	 	“THE SECURITIES REPRESENTED HEREBY ARE SECURITIES OF A UNITED STATES DOMESTIC ISSUER AND HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY
THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B)
PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN ACCORDANCE
WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT OR (D) WITHIN THE UNITED STATES PURSUANT
TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, AND IN COMPLIANCE WITH
ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THE HOLDER HAS FURNISHED TO THE CORPORATION AN
OPINION OF COUNSEL OF

 

-20-

	 	 	 	RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLE SATISFACTORY TO THE CORPORATION
PRIOR TO SUCH OFFER, SALE OR TRANSFER. DELIVERY OF THIS CERTIFICATE MAY NOT
CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.
HEDGING TRANSACTIONS INVOLVING SUCH SECURITIES MAY NOT BE CONDUCTED UNLESS IN
COMPLIANCE WITH THE SECURITIES ACT.”;

     provided, that if any such securities are being sold or otherwise transferred under
paragraphs (C) or (D) in the above legend, the legend may be removed at such time that the Unit
Shares and Warrant Shares are no longer deemed to be “restricted securities” as defined in Rule 144
under the Securities Act, by delivery to the Corporation©s registrar and transfer agent and the
Corporation of an opinion of counsel, of recognized standing reasonably satisfactory to the
Company, that such legend is no longer required under applicable requirements of the Securities Act
or state securities laws;

	 	(c)	 	You understand and acknowledge that until such time as the same is no longer
required under applicable requirements of the Securities Act or applicable state
securities laws, certificates representing Warrants, and all certificates issued in
exchange therefor or in substitution thereof, shall bear the following legend:
	 
	 	 	 	“THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF
ARE SECURITIES OF A UNITED STATES DOMESTIC ISSUER AND HAVE NOT BEEN REGISTERED UNDER
THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE
HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY
THAT SUCH SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE
CORPORATION, (B) PURSUANT TO REGISTRATION UNDER THE SECURITIES ACT OR (C) OUTSIDE THE
UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT.
AS USED HEREIN, THE TERMS “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS
ASCRIBED TO THEM IN REGULATION S UNDER THE SECURITIES ACT. HEDGING TRANSACTIONS
INVOLVING SUCH SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
SECURITIES ACT”.

	8.	 	Representations and Warranties of the Corporation

The Corporation hereby represents and warrants to the Subscriber that the representations and
warranties made by the Corporation to the Agent in the Agency Agreement will be true and correct in
all material respects as of the Closing Date (save and except as waived by the Agent) and will
survive for the respective periods provided for therein and the Subscriber is entitled to rely
thereon, and acknowledges and confirms that the Subscriber is relying upon such representations and
warranties in entering into this Agreement and completing the transactions contemplated herein.

	9.	 	Covenants of the Corporation

The Corporation hereby covenants and agrees with the Subscriber that the covenants given by the
Corporation to the Agent in the Agency Agreement will be true and correct in all material respects
as of the Closing Date (save and except as waived by the Agent) and the Subscriber is entitled to
rely thereon.

 

-21-

	10.	 	Fee

The Subscriber understands that in connection with the issue and sale of the Offered Securities,
the Agent will receive from the Corporation on Closing, an aggregate cash fee equal to 6% of the
aggregate Purchase Price. The Corporation will also grant to the Agent, non-transferable
compensation options (the “Compensation Options”) equal to an aggregate 6% of the number of Offered
Securities sold (excluding the Rights Units). Each Compensation Option shall be exercisable by the
Agent for one Unit at a price of U.S.$6.50 per Unit until 5:00 p.m. (Toronto Time) on the date that
is 24 months following the Closing Date. The Agent shall also receive one Right for each
Compensation Option granted to the Agent. No other fee or commission is payable by the Corporation
in connection with the offering of the Offered Securities. The Corporation will, however, pay
certain fees and expenses of the Agent in connection with the Offering, as set out in the Agency
Agreement.

	11.	 	General

	 	(a)	 	Headings: The division of this Agreement into articles and sections and
the insertion of headings are for convenience of reference only and shall not affect the
construction or interpretation of this Agreement. The terms “this Agreement,” this
“Subscription Agreement”, “hereof,” “hereunder”, “herein” and similar expressions refer
to this Agreement and not to any particular article, section or other portion hereof and
include any agreement supplemental thereto and any exhibits attached hereto. Unless
something in the subject matter or context is inconsistent therewith, reference herein
to articles, sections and paragraphs are to articles, sections, subsections and
paragraphs of this Agreement.
	 
	 	(c)	 	Severability: If one or more of the provisions contained in this
Agreement shall be invalid,
	 
	 	(b)	 	Number and Gender: Words importing the singular number only
shall include the plural and vice versa, words importing the masculine
gender shall include the feminine gender and neuter and vice
versa.
	 
	 	 	 	illegal or unenforceable in any respect under any applicable
law, the validity, legality or enforceability of the remaining provisions hereof shall
not be affected or impaired thereby. Each of the provisions of this Agreement is hereby
declared to be separate and distinct.
	 
	 	(d)	 	Notices:

	 	(i)	 	All notices or other communications to be given hereunder shall be delivered by hand or by
telecopier, and if delivered by hand, shall be deemed to have been given on the date of
delivery or, if sent by telecopier, on the date of transmission if sent before 5:00 p.m. and
such day is a Business Day or, if not, on the first Business Day following the date of
transmission.
	 
	 	 	 	Notices to the Corporation shall be addressed to:

	 	 	 	GeoGlobal Resources Inc.

630 – 4th Avenue S.W.

Suite 200 Calgary,

Alberta T2P 0J9

 

-22-

	 	 	 	Attention: Allen J. Kent Fax:

(403) 777-9199

	 
	 	 	 	with a copy to :
	 
	 	 	 	William S. Clarke, Esq.

William S. Clarke, P.A. 457

North Harrison Street

Princeton, NJ 08540
	 
	 	 	 	Fax: (609) 921-3933

	 	 	 	Notices to the Subscriber shall be addressed to the address of the Subscriber set out on
the execution page hereof, with a copy to the Agent at:

	 	 	 	Jones, Gable & Company Limited
 110
Yonge Street Suite 600
	 	 	 	Toronto, Ontario M5C 1T6
	 
	 	 	 	Attention: Robb Hindson 
Fax:
(416) 365-8037
	 
	 	 	 	with a copy to:
	 
	 	 	 	Goodman and Carr LLP 
200
King Street West
 Suite 2300
Toronto, Ontario
 M5H
3W5
	 
	 	 	 	Attention: Jay Goldman Fax:

(416) 595-0567

	 	(ii)	 	Any such notice, direction or other instrument, if delivered personally, shall be deemed to
have been given and received on the day on which it was delivered, provided that if such day
is not a Business Day then the notice, direction or other instrument shall be deemed to have
been given and received on the first Business Day next following such day and if transmitted
by fax, shall be deemed to have been given and received on the day of its transmission,
provided that if such day is not a Business Day or if it is transmitted or received after the
end of normal business hours then the notice, direction or other instrument shall be deemed to
have been given and received on the first Business Day next following the day of such
transmission.
	 
	 	(iii)	 	Any party hereto may change its address for service from time to time by notice given to
each of the other parties hereto in accordance with the foregoing provisions.

 

-23-

	(e)	 	Further Assurances: Each party hereto shall from time to time at the request of the
other party hereto do such further acts and execute and deliver such further instruments,
deeds and documents as shall be reasonably required in order to fully perform and carry out
the provisions of this Agreement. The parties hereto agree to act honestly and in good faith
in the performance of their respective obligations hereunder.
	 
	(f)	 	Successors and Assigns: Except as otherwise provided, this Agreement shall enure to the
benefit of and shall be binding upon the parties hereto and their respective successors and
permitted assigns.
	 
	(g)	 	Entire Agreement: The terms of this Agreement express and constitute the entire agreement
between the parties hereto with respect to the subject matter hereof and no implied term or
liability of any kind is created or shall arise by reason of anything in this Agreement.
	 
	(h)	 	Time of Essence: Time is of the essence of this Agreement.
	 
	(i)	 	Amendments: The provisions of this Agreement may only be amended with the written
consent of all of the parties hereto.
	 
	(j)	 	Survival: Notwithstanding any other provision of this Agreement, the representations,
warranties and covenants of the Corporation and the Subscriber contained herein or in any
certificate, document or instrument delivered pursuant hereto shall survive the completion of the
transactions contemplated by this Agreement.
	 
	(k)	 	Governing Law: This Agreement shall be governed by and construed in accordance with
the laws of the Province of Ontario and the laws of Canada applicable therein and the parties
hereto irrevocably attorn to the jurisdiction of the courts of the Province of Ontario.
	 
	(l)	 	Costs: All costs and expenses incurred by you (including any fees and disbursements of any
counsel retained by you) relating to the purchase by you of the Purchased Securities shall be borne
by you.
	 
	(m)	 	Assignment: This Agreement is not transferable or assignable, in whole or in part, by you
or, if applicable, by others on whose behalf you are contracting hereunder.
	 
	(n)	 	Counterparts: This Agreement may be executed in two or more counterparts which when
taken together shall constitute one and the same agreement. Delivery of counterparts may be
effected by facsimile transmission thereof.
	 
	(o)	 	Facsimile Copies: The Corporation shall be entitled to rely on a facsimile copy of an
executed subscription and renunciation agreement and acceptance by the Corporation of such
facsimile subscription shall be legally effective to create a valid and binding agreement
between the Subscriber and the Corporation in accordance with the terms thereof.

If the foregoing is in accordance with your understanding, please sign and return this
Agreement together with the other required documents signifying your agreement to purchase the
Purchased Securities.

 

EXECUTION PAGES

	 	 	 
	TO:

	 	GEOGLOBAL RESOURCES INC.
	AND TO:

	 	JONES, GABLE & COMPANY LIMITED

The undersigned hereby accepts the foregoing and agrees to be bound by the terms set forth herein
and, without limitation, agrees that the Corporation and the Agent may rely upon the covenants,
representations and warranties of the undersigned contained herein.

     DATED as of this                     day of          , 2005.

	 	 	 	 	 	 	 
	Number of Units to be purchased at U.S.$6.50 each:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Aggregate Purchase Price:

	 	 	$	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name (full legal name of Subscriber) and Address of
Subscriber:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	(address, including postal code)
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	(facsimile number)

	 	 	 	 	 	(telephone number)
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	(number of Common Shares held prior to purchase
	 

	 	 	 	 	 	of Purchased Securities)
	 
	 	 	 	 	 	 
	 

	 	  By:
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	(signature)
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	(please print name)
	 
	 	 	 	 	 	 
	(social insurance or federal corporate/business
account number)

	 	 	 	 	 	(official capacity)

If you are signing as agent for a principal, and you are not a trust company or portfolio manager
signing as a trustee or as agent for a fully-managed account, please complete the following:

(name of beneficial purchaser)

(address of beneficial purchaser)

 

- EX2 -

The above-mentioned subscription is hereby accepted by GeoGlobal Resources Inc.

     DATED as of this                      day of                                          , 2005.

	 	 	 	 	 
	 	GEOGLOBAL RESOURCES INC. 

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

Authorized Signing Officer

 

 

SCHEDULE “A”

Term Sheet

GeoGlobal Resources Inc.

Best Efforts Offering of Units

Up to U.S. $13,000,000

	 	 	 
	Issuer:

	 	GeoGlobal Resources Inc. (the “Company”).
	 
	 	 
	Offering:

	 	Up to 2,000,000 units (“Units”). Each Unit will be comprised of one
common share of the Company (“Common Share”) and one-half of one
common share purchase warrant (each whole such common share
purchase warrant, a “Warrant”). Each Warrant will entitle the holder to
acquire one additional Common Share (each a “Warrant Share”) at an
exercise price of U.S.$9.00 per Warrant Share at any time on or before two
years (“Warrant Term”) following the Closing Date (as defined below);
provided that if the trading price of the Common Shares on the American
Stock Exchange or on any other exchange that the Common Shares are
listed is at U.S.$12.00 or more for 20 consecutive trading days and if the
registration statement referred to herein under the caption U.S.
Registration Statement has been declared effective, then the Warrant Term
shall be automatically reduced to 30 days from the date of initial issuance
of a news release by the Corporation announcing the change to the
Warrant Term. The Warrants shall be issued pursuant to a warrant
indenture or certificate (the “Warrant Indenture or Certificate”) which
shall contain customary anti-dilution provisions. Subscribers for Units
will also be issued one non-transferable right (a “Right”) for each Unit
purchased, each Right entitling the holder thereof, subject to certain
conditions, to be issued 0.10 of a Unit (each whole such Unit, a “Rights
Unit”) for nominal consideration in the event that the filing of a
Registration Statement (as defined below) (the “Liquidity Event”) with
the U.S. Securities and Exchange Commission (the “SEC”) has not
occurred on or before 5:00 p.m. (Toronto time) on the date that is 60 days
following the Closing Date (the “Liquidity Event Deadline”).
	 
	 	 
	Offering Price:

	 	U.S. $6.50 per Unit (the “Offering Price”).
	 
	 	 
	Offering Size:

	 	Up to U.S. $13,000,000.
	 
	 	 
	Agent:

	 	Jones, Gable & Company Limited.
	 
	 	 
	U.S. Registration
Statement:

	 	The Company will, as promptly as practicable after the Closing Date, file
with and will thereafter use its best efforts to have declared effective by
the SEC a registration statement (the “Registration Statement”) with
respect to the resale of (i) the Common Shares comprising, in part, the
Units; (ii) the Common Shares issuable upon exercise of the
Compensation Options; and (iii) the Common Shares issuable on exercise
of the Warrants which comprise, in part, the Units (including the Units

 

- A-2 -

	 	 	 
	 

	 	issuable upon exercise of the Compensation Options), and the subscribers
and the Agent shall agree to provide to the Company such information as
it may reasonably request in connection therewith. In the event that the
Liquidity Event has not occurred by the Liquidity Event Deadline, Rights
Units shall be issued pursuant to and in accordance with the terms of the
Rights and the Registration Statement will also cover the resale of the
Common Shares comprising in part the Rights Units, the Common Shares
issuable upon exercise of the Warrants which comprise in part, the Rights
Units and the additional Common Shares that become issuable in
connection with the exercise of the Compensation Options.
	 
	 	 
	Commission:

	 	6% of the gross proceeds from the Offering.
	 
	 	 
	Compensation Options:

	 	The Agent shall receive at closing of the Offering non-transferable
compensation options (“Compensation Options”) entitling the Agent to
purchase Units equal in number to 6% of the aggregate number of Units
issued and sold under the Offering at a price of U.S. $6.50 per Unit,
subject to customary anti-dilution provisions. The Compensation Options
are to be exercisable at any time prior to the date that is two years after
Closing Date. The Units issued upon exercise of the Compensation
Options are to be the same as the Units issued and sold under the Offering,
comprising one Common Share and one-half of a Warrant (exercisable and
transferable on the same terms and conditions as the Warrants issued and
sold under the Offering) subject to applicable securities laws. The holders
of the Compensation Option will also receive one Right for each
Compensation Option issued.
	 
	 	 
	Offering Procedure:

	 	The selling jurisdictions (the “Selling Jurisdictions”) for the Offering will
be the provinces of Alberta, British Columbia, and Ontario, and such other
provinces as the Agent may specify and the Company agrees to prior to
the Closing Date. The Units may also be placed in United States through a
U.S. sub-agent pursuant to applicable exemptions from the registration
requirements of the United States Securities Act of 1933, as amended (the
“Act”), provided that as a “domestic” issuer under the securities laws of
the United States, the offering shall be conducted in all jurisdictions in the
United States in accordance with Regulation D of the Act or other
available exemptions from the registration requirements of the Act. The
Units may also be sold in certain foreign jurisdictions, pursuant to
applicable securities regulations, subject to the Company©s approval. The
Units are to be sold on a “private placement” basis without the preparation
or filing of a prospectus, registration statement, offering memorandum or
similar disclosure document, provided that the subscribers shall
acknowledge in the subscription agreement(s) having available to them
and opportunity to review the Company’s periodic reports and other filings
made with the SEC under the United States Securities Exchange Act of
1934, as amended, and the Act and such other access and information as is
required in compliance with Regulation D. The Agent will only provide
potential subscribers with this Term Sheet (or an abridged version) and
subscription agreement(s) in respect of the Units.
	 
	 	 
	Hold Period:

	 	It is a condition to closing of the Offering that the Units, the Warrant
Shares and the Rights Units will not be subject to a hold period in Canada

 

- A-3 -

	 	 	 
	 

	 	greater than four months and one day from the Closing Date, following
which such securities will be free trading. The Units, Warrants, Warrant
Shares, Common Shares and Rights Units will not be transferable into the
United States unless such transfer is made pursuant to the Registration
Statement or an exemption from the registration requirements of the Act.
All certificates issued on the Closing Date will be legended accordingly.
	 
	 	 
	Use of Proceeds:

	 	The net proceeds from the Offering will be used to accelerate the
production and development of the CB-ONN-2002/2 and CB-ONN
2002/3 blocks and all other blocks as acquired in India and for general
corporate purposes.
	 
	 	 
	Closing Date:

	 	The Offering will close on or about August 30, 2005, or such other date or
dates as agreed to by the Company and the Agent, acting reasonably, but
in any event no later than September 30, 2005 (the “Closing Date”).

 

 

SCHEDULE “B”

ALL SUBSCRIBERS

REGISTRATION AND DELIVERY INSTRUCTIONS

	1.	 	Delivery: Please deliver the certificate representing the Purchased Securities to:
	 
	 	 	Name
	 
	 	 	Account reference, if applicable
	 
	 	 	Contact name
	 
	 	 	Address, including postal code
	 
	 	 	Telephone number

	2.	 	Registration: The certificate representing the Purchased Securities which is to be
delivered at Closing should be registered as follows:
	 
	 	 	Name
	 
	 	 	Account reference, if applicable
	 
	 	 	Address, including postal code

Words and terms herein with the initial letter or letters thereof capitalized and defined in the
Agreement shall have the meanings given to such capitalized words and terms in the Agreement.

 

 

SCHEDULE “C”

BRITISH COLUMBIA AND ALBERTA SUBSCRIBERS TO:

	 	 	 
	 

	 	GEOGLOBAL RESOURCES INC.
	AND TO:

	 	JONES, GABLE & COMPANY LIMITED

CERTIFICATE

In connection with the purchase by the undersigned purchaser (the “Purchaser”) of units (the
“Purchased Securities”) of GeoGlobal Resources Inc. (the “Corporation”), the Purchaser hereby
represents, warrants and certifies that:

	1.	 	the Purchaser is resident in the Province of British Columbia or Alberta or is subject
to the securities laws of the
Province of British Columbia or Alberta;
	 
	2.	 	the Purchaser is purchasing the Purchased Securities as principal for its own account;

	 
	3.	 	the Purchaser is (please initial the appropriate line):

	 	(a)	 	                     an “accredited investor” within the meaning of Multilateral
Instrument 45-103, Capital Raising Exemptions, by virtue of satisfying the indicated
criterion as set out in Appendix “A” to this certificate (YOU MUST ALSO INITIAL THE
APPROPRIATE LINE IN APPENDIX A TO THIS CERTIFICATE);
	 
	 	(b)	 	                     a director, senior officer or control person of the Corporation,
or of an affiliate of the Corporation;
	 
	 	(c)	 	                     a spouse, parent, grandparent, brother, sister or child of
                                                             (name of person) a director, senior officer or
control person of the Corporation, or of an affiliate of the Corporation;
	 
	 	(d)	 	                     a parent, grandparent, brother, sister or child of the spouse of
                                        (name of person) a director, senior officer or control
person of the Corporation, or of an affiliate of the Corporation;
	 
	 	(e)	 	                     a close personal friend of                                                              (name of
person) a director, senior officer or control person of the Corporation, or of an
affiliate of the Corporation;
	 
	 	(f)	 	                     a close business associate of                                                             
(name of person) a director, senior officer or control person of the Corporation, or
of an affiliate of the Corporation;
	 
	 	(g)	 	                     a founder of the Corporation or a spouse, parent, grandparent,
brother, sister, child, close personal friend or close business associate of
                                                             (name of person) a founder of the Corporation;
	 
	 	(h)	 	                     a parent, grandparent, brother, sister or child of the spouse of
                                         (name of person) a founder of the Corporation;
	 
	 	(i)	 	                     a person or company of which a majority of the voting securities
are beneficially owned by, or a majority of the directors are, persons or companies
described in subsections 3(b) to 3(h) above; or
	 
	 	(j)	 	                     a trust or estate of which all of the beneficiaries or a majority
of the trustees are persons or companies described in subsections 3(b) to 3(h) above;

	4.	 	the above representations and warranties will be true and correct both as of the
execution of this certificate and as of the closing time of the purchase and sale of the
Purchased Securities and acknowledges that they will survive the completion of the issue of
the Purchased Securities; and

	5.	 	acknowledges that the foregoing representations and warranties are made by the
undersigned with the intent that they be relied upon in determining the suitability of the
undersigned as a purchaser of the Purchased Securities and the undersigned undertakes to
immediately notify the Corporation and the Agent of any change in any statement or other
information relating to the Purchaser set forth herein which takes place prior to the closing
time of the purchase and sale of the Purchased Securities.

 

- C-2 -

Dated:                                                              , 2005.

	 	 	 	 	 
	 	 	Print name of Purchaser
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	Signature
	 
	 	 	 	 
	 

	 	 	 	Title
	 
	 	 	 	 
	 

	 	 	 	(please print name of individual whose signature appears
	 

	 	 	 	above, if different from name of purchaser printed above)

 

 

Appendix A to Schedule “C”

Accredited Investor — (defined in Multilateral Instrument 45-103) means:

	 	(a)	 	a Canadian financial institution, or an authorized foreign bank
listed in Schedule III of the Bank Act (Canada),
	 
	 	(b)	 	the Business Development Bank of Canada incorporated under the Business Development Bank
of Canada Act (Canada),
	 
	 	(c)	 	an association under the Cooperative Credit Associations Act (Canada)
located in Canada or a central cooperative credit society for which an order has
been made under subsection 473(1) of that Act,
	 
	 	(d)	 	a subsidiary of any person or company referred to in paragraphs
(a) to (c), if the person or company owns all of the voting securities of the
subsidiary, except the voting securities required by law to be owned by
directors of that subsidiary,
	 
	 	(e)	 	a person or company registered under the securities legislation
of a jurisdiction of Canada, as an adviser or dealer, other than a limited
market dealer registered under the Securities Act (Ontario) or the Securities
Act (Newfoundland and Labrador),
	 
	 	(f)	 	an individual registered or formerly registered under the securities legislation of a
jurisdiction of Canada, as a representative of a person or company referred to in paragraph
(e),
	 
	 	(g)	 	the government of Canada or a jurisdiction of Canada, or any crown corporation, agency or
wholly owned entity of the government of Canada or a jurisdiction of Canada,
	 
	 	(h)	 	a municipality, public board or commission in Canada,
	 
	 	(i)	 	any national, federal, state, provincial, territorial or municipal government of or in any
foreign jurisdiction, or any agency of that government,
	 
	 	(j)	 	a pension fund that is regulated by either the Office of the Superintendent of Financial
Institutions (Canada) or a pension commission or similar regulatory authority of a jurisdiction
of Canada,
	 
	 	(k)	 	an individual who, either alone or jointly with a spouse, beneficially
owns, directly or indirectly, financial assets having an aggregate realizable
value that before taxes, but net of any related liabilities, exceeds $1,000,000,
	 
	 	(l)	 	an individual whose net income before taxes exceeded $200,000 in each of the two most recent
years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each
of the two most recent years and who, in either case, reasonably expects to exceed that net
income level in the current year,
	 
	 	(m)	 	a person or company, other than a mutual fund or non-redeemable investment fund, that, either
alone or with a spouse, has net assets of at least $5,000,000, and unless the person or company
is an individual, that amount is shown on its most recently prepared financial statements,

 

- C-A-2 -

	 	(n)	 	a mutual fund or non-redeemable investment fund that, in the
local jurisdiction, distributes its securities only to persons or companies that
are accredited investors,
	 
	 	(o)	 	a mutual fund or non-redeemable investment fund that, in the local
jurisdiction, is distributing or has distributed its securities under one or
more prospectuses for which the regulator has issued receipts,
	 
	 	(p)	 	a trust company or trust corporation registered or authorized to carry on business under
the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of
Canada or a foreign jurisdiction, trading as a trustee or agent on behalf of a fully managed
account,
	 
	 	(q)	 	a person or company trading as agent on behalf of a fully managed account if that person or
company is registered or authorized to carry on business under the securities legislation of a
jurisdiction of Canada or a foreign jurisdiction as a portfolio manager or under an equivalent
category of adviser or is exempt from registration as a portfolio manager or the equivalent
category of adviser,
	 
	 	(r)	 	a registered charity under the Income Tax Act (Canada) that, in
regard to the trade, has obtained advice from an eligibility adviser or other
adviser registered to provide advice on the securities being traded,
	 
	 	(s)	 	an entity organized in a foreign jurisdiction that is analogous to any
of the entities referred to in paragraphs (a) through (e) and paragraph (j) in
form and function, or
	 
	 	(t)	 	a person or company in respect of which all of the owners of interests,
direct or indirect, legal or beneficial, except the voting securities required
by law to be owned by directors, are persons or companies that are accredited
investors.

			
	NOTE:	 	The investor should initial beside the portion of the above definition
applicable to it. For the purposes hereof:

	(a)	 	“control person” has the meaning ascribed to that term in securities legislation except in
Manitoba, the Northwest Territories, Nova Scotia, Nunavut, Newfoundland and Labrador and Prince
Edward Island, where “control person” means any person or company that holds or is one of a
combination of persons or companies that holds

	 	(i)	 	a sufficient number of any of the securities of an issuer so as to affect materially
the control of the issuer, or
	 
	 	(ii)	 	more than 20% of the outstanding voting securities of an issuer except where there
is evidence showing that the holding of those securities does not affect materially the
control of that issuer;

	(b)	 	“eligibility adviser” means

	 	(i)	 	an investment dealer or equivalent category of registration, registered under the securities
legislation of the jurisdiction of a purchaser and authorized to give advice with respect to the
type of security being distributed, and
	 
	 	(ii)	 	in Saskatchewan or Manitoba, also means a lawyer who is a practising member in
good standing with a law society of a jurisdiction of Canada or a public accountant who
is a member in good standing of an institute or association of chartered accountants,
certified general accountants or management accountants in a jurisdiction of Canada
provided that the lawyer or public accountant:

 

- C-A-3 -

	 	(A)	 	does not have a professional, business or personal relationship with the
issuer, or any of its directors, senior officers, founders or control persons,
and
	 
	 	(B)	 	has not acted for or been retained personally or otherwise as an
employee, senior officer, director, associate or partner of a person or company
that has acted for or been retained by the issuer or any of its directors,
senior officers, founders or control persons within the previous year;

	(c)	 	“financial assets” means cash and securities;
	 
	(d)	 	“founder”, in respect of an issuer, means a person or company who,

	 	(i)	 	acting alone, in conjunction or in concert with one or more other persons or companies,
directly or indirectly, takes the initiative in founding, organizing or substantially
reorganizing the business of the issuer, and
	 
	 	(ii)	 	at the time of the proposed trade, is actively involved in the business of the
issuer;

	(e)	 	“fully managed account” means an account for which a person or company makes the
investment decisions if that person or company has full discretion to trade in securities for
the account without requiring the client’s express consent to a transaction;
	 
	(f)	 	“non-redeemable investment fund” means an issuer:

	 	(i)	 	where contributions of security holders are pooled for investment,
	 
	 	(ii)	 	where security holders do not have day-to-day control over the management and
investment decisions of the issuer, whether or not they have the right to be consulted or to
give directions, and
	 
	 	(iii)	 	whose securities do not entitle the security holder to receive on demand, or
within a specified period after demand, an amount computed by reference to the value of a
proportionate interest in the whole or in part of the net assets of the issuer; and

	(g)	 	“related liabilities” means

	 	(i)	 	liabilities incurred or assumed for the purpose of financing the acquisition or ownership of financial assets, or
	 
	 	(ii)	 	liabilities that are secured by financial assets.

All monetary references are in Canadian Dollars

 

 

SCHEDULE“D”

ONTARIO SUBSCRIBERS

	 	 	 
	TO:

	 	GEOGLOBAL RESOURCES INC.
	AND TO:

	 	JONES, GABLE & COMPANY LIMITED

CERTIFICATE

In connection with the purchase by the undersigned purchaser (the “Purchaser”) of units (the
“Purchased Securities”) of GeoGlobal Resources Ina (the “Corporation”), the Purchaser hereby
represents, warrants and certifies that:

	1.	 	the Purchaser or any beneficial purchaser for whom the Purchaser is acting, as applicable, is
resident in the Province of Ontario or is subject to the securities laws of the Province of
Ontario;
	 
	2.	 	the Purchaser

	 	(i)	 	is purchasing the Purchased Securities as principal for its own account; or
	 
	 	(ii)	 	as agent for a beneficial purchaser disclosed on the execution
page of the agreement to which this Schedule “D” is attached, and such
disclosed beneficial purchaser is purchasing the Purchased Securities as
principal for its own account;

	3.	 	the Purchaser or any beneficial purchaser for whom the Purchaser is acting, as applicable, is
an “accredited investor” within the meaning of Rule 45-501 of the Ontario Securities
Commission by viriue of satisfying the indicated criterion as set out in appendix A to this
certificate;

	4.	 	the above representations and warranties will be true and
correct both as of the execution of
this certificate and as of the closing time of the purchase and sale of the Purchased
Securities and acknowledges that they will survive the completion of the issue of the
Purchased Securities; and

	5.	 	acknowledges that the foregoing representations and warranties are made by the undersigned
with the intent that they be relied upon in determining the suitability of the undersigned or
any beneficial purchaser for whom the Purchaser is acting, as applicable, as a purchaser of
the Purchased Securities and the undersigned undertakes to immediately notify the Corporation
and the Agent of any change in any statement or other information relating to the Purchaser or
any beneficial purchaser for whom the Purchaser is acting, as applicable, set forth herein
which takes place prior to the closing time.

      Dated:                                          , 2005.

	 	 	 	 	 
	 	 	Print name of Purchaser
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	Signature
	 
	 	 	 	 
	 

	 	 	 	Title
	 
	 	 	 	 
	 

	 	 	 	(please print name of individual whose signature appears
	 

	 	 	 	above, if different from name of purchaser printed above)

IMPORTANT: PLEASE INITIAL THE APPROPRIATE LINE IN APPENDIX A ATTACHED TO THIS CERTIFICATE.

 

 

Appendix A to Schedule “D”

Accredited Investor — (defined in Ontario Securities Commission Rule 45-501) means:

	 	(a)	 	a bank listed in Schedule I or II of the Bank Act
(Canada), or an authorized foreign bank listed in Schedule III of the Bank
Act (Canada);
	 
	 	(b)	 	the Business Development Bank incorporated under the Business Development Bank Act
(Canada);
	 
	 	(c)	 	a loan corporation or trust corporation registered under the Loan and Trust Corporations Act
(Ontario) or under the Trust and Loan Companies Act (Canada), or under comparable legislation
in any other jurisdiction;
	 
	 	(d)	 	a co-operative credit society, credit union central, federation of caisses populaires, credit
union or league, or regional caisse populaire, or an association under the Cooperative Credit
Associations Act (Canada), in each case, located in Canada;
	 
	 	(e)	 	a company licensed to do business as an insurance company in any jurisdiction;
	 
	 	(f)	 	a subsidiary entity of any person or company referred to in paragraph (a), (b), (c), (d) or
(e), where the person or company owns all of the voting shares of the subsidiary
	 
	 	(g)	 	a person or company registered under the Securities Act (Ontario) or securities legislation in
another jurisdiction as an adviser or dealer, other than a limited market dealer;
	 
	 	(h)	 	the government of Canada or of any jurisdiction, or any crown corporation, instrumentality or
agency of a Canadian federal, provincial or territorial government;
	 
	 	(i)	 	any Canadian municipality or any Canadian provincial or territorial capital city;
	 
	 	(j)	 	any national, federal, state, provincial, territorial or municipal government of or in any foreign
jurisdiction, or any instrumentality or agency thereof;
	 
	 	(k)	 	a pension fund that is regulated by either the Office of the Superintendent of Financial
Institutions (Canada) or a provincial pension commission or similar regulatory authority;
	 
	 	(l)	 	a registered charity under the Income Tax Act (Canada);
	 
	 	(m)	 	an individual who beneficially owns, or who together with a spouse beneficially own, financial
assets having an aggregate realizable value that, before taxes but net of any related liabilities,
exceeds $1,000,000;
	 
	 	(n)	 	n individual whose net income before taxes exceeded $200,000 in each of the two most recent
years or whose net income before taxes combined with that of a spouse exceeded $300,000 in
each of those years and who, in either case, has a reasonable expectation of exceeding the
same net income level in the current year;
	 
	 	(o)	 	an individual who has been granted registration under the Securities Act (Ontario) or
securities legislation in another jurisdiction as a representative of a person or company
referred to in paragraph (g), whether or not the individual’s registration is still in effect;

 

- D-A-2 -

	 	(p)	 	a promoter of the issuer or an affiliated entity of a promoter of the issuer;
	 
	 	(q)	 	a spouse, parent, brother, sister, grandparent or child of an officer, director or promoter
of the issuer;
	 
	 	(r)	 	a person or company that, in relation to the issuer, is an affiliated entity or a person or
company referred to in clause (c) of the definition of distribution in subsection 1(1) of the
Securities Act (Ontario);
	 
	 	(s)	 	an issuer that is acquiring securities of its own issue;
	 
	 	(t)	 	a company, limited liability company, limited partnership, limited liability partnership,
trust or estate, other than a mutual fund or non-redeemable investment fund, that had net
assets of at least $5,000,000 as reflected in its most recently prepared financial statements;
	 
	 	(u)	 	a person or company that is recognized by the Ontario Securities Commission as an accredited
investor;
	 
	 	(v)	 	a mutual fund or non-redeemable investment fund that, in Ontario, distributes its securities
only to persons or companies that are accredited investors;
	 
	 	(w)	 	a mutual fund or non-redeemable investment fund that, in Ontario, distributes its securities under
a prospectus for which a receipt has been granted by the Director (as defined in the Securities Act
(Ontario)) or, if it has ceased distribution of its securities, has previously distributed its
securities in this manner;
	 
	 	(x)	 	a fully managed account if it is acquiring a security that is not a security of a mutual fund
or non-redeemable investment fund;
	 
	 	(y)	 	an account that is fully managed by a trust corporation registered under the Loan and Trust
Corporations Act (Ontario) or under the Trust and Loan Companies Act (Canada), or under comparable
legislation in any other jurisdiction;
	 
	 	(z)	 	an entity organized outside of Canada that is analogous to any of the entities referred
to in paragraphs (a) through (g) and paragraph (k) in form and function; and
	 
	 	(aa)	 	a person or company in respect of which all of the owners of interests, direct or indirect, legal
or beneficial, are persons or companies that are accredited investors.

NOTE: The investor should initial beside the above paragraph applicable to the investor.

 

- D-A-3 -

For the purposes hereof:

	(a)	 	“company” means any corporation, incorporated association, incorporated syndicate or other
incorporated organization;
	 
	(b)	 	“control person” means any person, company or combination of persons or companies holding a
sufficient number of any securities of the issuer to affect materially the control of the issuer
but any holding of any persons, company or combination of persons or companies holding more than
20% of the outstanding voting securities of the issuer, in the absence of evidence to the contrary,
shall be deemed to affect materially the control of the issuer;
	 
	(c)	 	“director” where used in relation to a person, includes a person acting in a capacity similar
to that of a director of a company;
	 
	(d)	 	“entity” means a company, syndicate, partnership, trust or unincorporated organization;
	 
	(e)	 	“financial assets” means cash, securities, or any contract of insurance or deposit or
evidence thereof that is not a security for the purposes of the Securities Act (Ontario);
	 
	(f)	 	“fully managed account” means an investment portfolio account of a client established in writing
with a portfolio adviser who makes investment decisions for the account and has full discretion to
trade in securities of the account without requiring the client©s express consent to a transaction;
	 
	(g)	 	“individual” means a natural person, but does not include a partnership, unincorporated
association, unincorporated syndicate, unincorporated organization, trust or a natural person in
his or her capacity as trustee, executor, administrator or other legal personal representative;
	 
	(h)	 	“mutual fund” includes,

	 	(i)	 	an issuer whose primary purpose is to invest money provided by its security holders, and whose
securities entitle the holder to receive on demand, or within a specified period after demand, an
amount computed by reference to the value of a proportionate interest in the whole or in a part of
the net assets, including a separate fund or trust account, of the issuer or
	 
	 	(ii)	 	an issuer or a class of issuers that is designated as a mutual fund by an order of
the Commission in the case of a single issuer or otherwise in a regulation which is made
for the purposes of this definition

but does not include an issuer or a class of issuer that is designated not to be a mutual fund
by an order of the Commission in the case of a single issuer or otherwise in a regulation
which is made for the purposes of this definition;

	(i)	 	“non-redeemable investment fund” means an issuer:

	 	(i)	 	whose primary purpose is to invest money provided by its securityholders;
	 
	 	(ii)	 	that does not invest for the purpose of exercising effective control, seeking to exercise effective
control, or being actively involved in the management of the issuers in which it invests, other
than other mutual funds or non-redeemable investment funds; and
	 
	 	(iii)	 	that is not a mutual fund;

 

- D-A-4 -

	(j)	 	“officer” means the chair, any vice-chair of the board of directors, the president, any vice
president, the secretary, the assistant secretary, the treasurer, the assistant treasurer, and
the general manager of a company, and any other person designated an officer or a company by
by-law or similar authority, or any individual acting in a similar capacity on behalf of the
issuer or registrant;
	 
	(k)	 	“person” means an individual, partnership, unincorporated association, unincorporated
syndicate, unincorporated organization, trust, trustee, executor, administrator, or other
legal representative;
	 
	(l)	 	“portfolio adviser” means

	 	(i)	 	a portfolio manager registered under the Securities Act (Ontario); or
	 
	 	(ii)	 	a broker or investment dealer exempted from registration as an adviser under subsection 148(1) of
the Regulation under the Securities Act (Ontario) if that broker or investment dealer is not exempt
from the by-laws or regulations of The Toronto Stock Exchange or the Investment Dealers©
Association of Canada referred to in that subsection;

	(m)	 	“promoter” means (a) a person or company who, acting alone or in conjunction with
one or more other persons, companies or a combination thereof, directly or indirectly, has taken
the initiative in founding, organizing or substantially reorganizing the business of the issuer,
or (b) a person or company who, in connection with the founding, organizing or substantial
reorganizing of the business of the issuer, directly or indirectly, received in consideration of
services or property, or both services and property, 10% or more of any class of securities of the
issuer or 10% or more of the proceeds from the sale of any class of securities of a particular
issue, but a person or company who receives such securities or proceeds either solely as
underwriting commissions or solely in consideration of property shall not be deemed a promoter
within the meaning of this definition if such person or company does not otherwise take part in
founding, organizing or substantially reorganizing the business;
	 
	(n)	 	“related liabilities” means liabilities incurred or assumed for the purpose of financing
the acquisition or ownership of financial assets and liabilities that are secured by financial
assets; and
	 
	(o)	 	“spouse”, in relation to an individual, means another individual to whom that individual is
married, or another individual of the opposite sex or the same sex with whom that individual
is living in a conjugal relationship outside marriage;

 

- D-A-5 -

Affiliated Entities, Control and Subsidiaries

	1.	 	A person or company is considered to be an affiliated entity of another person or company if
one is a subsidiary entity of the other, or if both are subsidiary entities of the same person
or company, or if each of them is controlled by the same person or company.
	 
	2.	 	A person or company is considered to be controlled by a person or company if
	 
	(a)	 	in the case of a person or company,

	 	(i)	 	voting securities of the first mentioned person or company carrying more than 50% of the votes for
the election of directors are held, otherwise than by way of security only, by or for the benefit
of, the other person or company, and
	 
	 	(ii)	 	the votes carried by the securities are entitled, if exercise, to
elect a majority of the directors of the first-mentioned person or company;|

	(b)	 	in the case of a partnership that does not have directors, other than a limited partnership, the
secondmentioned person or company holds more than 50% of the interests in the partnership; or
	 
	(c)	 	in the case of a limited partnership, the general partner is the second-mentioned person
or company.
	 
	3.	 	A person or company is considered to be a subsidiary entity of another person or
company if (a) it is controlled by,|

	 	(i)	 	that other, or
	 
	 	(ii)	 	that other and one or more persons or companies each of which is
controlled by that other, or
	 
	 	(iii)	 	two or more persons or companies, each of which is
controlled by that other, or

	(b)	 	it is a subsidiary entity of a person or company that is
the other’s subsidiary entity.

All monetary references are in Canadian Dollars.

 

 

SCHEDULE “E”

ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS

FOR SUBSCRIBERS OUTSIDE OF NORTH AMERICA

The Subscriber, on its own behalf and (if applicable) on behalf of others for whom it is
contracting hereunder, further represents, warrants and covenants to and with the Corporation and
the Agent (and acknowledges that the Corporation and the Agent are relying thereon) that it is, and
(if applicable) any beneficial purchaser for whom it is contracting hereunder is, a resident of, or
otherwise subject to, the securities legislation of a jurisdiction other than Canada or
the United States, and:

(a) the Subscriber is, and (if applicable) any other purchaser for whom it is contracting
hereunder, is:

(i) a purchaser that is recognized by the securities regulatory authority in the
jurisdiction in which it is, and (if applicable) any other purchaser for whom it is
contracting hereunder is resident or otherwise subject to the securities laws of such
jurisdiction, as an exempt purchaser and is purchasing the Purchased Securities as
principal for its, or (if applicable) each such other purchaser©s, own account, and
not for the benefit of any other person, for investment only and not with a view to
resale or distribution; or

(ii) a purchaser which is purchasing Purchased Securities pursuant to an exemption
from any prospectus or securities registration requirements (particulars of which are
enclosed herewith) available to the Corporation, the Subscriber and any such other
purchaser under applicable securities laws of their jurisdiction of residence or to
which the Subscriber and any such other purchaser are otherwise subject to, and the
Subscriber and any such other purchaser shall deliver to the Corporation such further
particulars of the exemption and their qualification thereunder as the Corporation
may reasonably request;

(b) the purchase of Purchased Securities by the Subscriber, and (if applicable) each such other
purchaser, does not contravene any of the applicable securities laws in such jurisdiction and does
not trigger: (i) any obligation to prepare and file a prospectus, an offering memorandum or similar
document, or any other ongoing reporting requirements with respect to such purchase or otherwise;
or (ii) any registration or other obligation on the part of the Corporation or the Agent; and

(c) the Subscriber, and (if applicable) any other purchaser for whom it is contracting hereunder,
will not sell or otherwise dispose of any Purchased Securities or any Common Shares, Warrants and
Warrant Shares underlying the Units (the “Underlying Securities”), except in accordance with
applicable Canadian securities laws and in accordance with the rules and regulations of the
American Stock Exchange, and if the Subscriber, or (if applicable) such beneficial purchaser, sells
or otherwise disposes of any Units or Underlying Securities to a person other than a resident of
Canada, the Subscriber, and (if applicable) such beneficial purchaser, will obtain from such
purchaser representations, warranties and covenants in the same form as provided in this Schedule
“E” and shall comply with such other requirements as the Corporation may reasonably require.

Dated at                    this                      day of                                          , 2005.

	 	 	 	 	 
	 	 	Name of Subscriber

	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	Signature
	 
	 	 	 	 
	 

	 	 	 	Title

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