Document:

EX-4.8

Exhibit
4.8

TRIDENT RESOURCES CORP.

- and -

TRIDENT EXPLORATION CORP.

- and -

THE SHAREHOLDERS AND OPTIONHOLDERS OF

TRIDENT EXPLORATION CORP.

THAT ARE SIGNATORIES HERETO

 

AMENDED AND RESTATED EXCHANGE RIGHTS AGREEMENT

 

This Agreement is dated June 1, 2006 and amends and restates in its entirety the Exchange 
Rights
Agreement dated December 4, 2003

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 DEFINITIONS AND INTERPRETATION
	 	 	1	 
	 
	1.1 Definitions
	 	 	1	 
	1.2 References and Headings
	 	 	5	 
	1.3 Statutory
	 	 	5	 
	1.4 Conflicts
	 	 	5	 
	1.5 Computation of Time Periods
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 2 EXCHANGE RIGHT
	 	 	6	 
	 
	2.2 General Exercise of Exchange Right
	 	 	6	 
	2.3 Exchange Consideration
	 	 	6	 
	2.4 Adjustment
	 	 	6	 
	2.5 Exercise Instructions
	 	 	7	 
	2.6 Delivery of Exchange Consideration; Effect of Exercise
	 	 	8	 
	2.7 Stamp or Other Transfer Taxes
	 	 	9	 
	2.8 Reservation of TRC Common Stock
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 3 NEW SHAREHOLDERS
	 	 	10	 
	 
	3.1 Party to Agreement
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 4 TERMINATION
	 	 	10	 
	 
	4.1 Termination
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 5 GENERAL
	 	 	10	 
	 
	5.1 Waiver, Amendment
	 	 	10	 
	5.2 New Parties
	 	 	10	 
	5.3 Notices
	 	 	11	 
	5.4 Time of Essence
	 	 	11	 
	5.5 Gender and Number
	 	 	11	 
	5.6 Further Assurances
	 	 	11	 
	5.7 Invalidity of Provisions
	 	 	11	 
	5.8 Entire Agreement; Termination of Prior Agreements
	 	 	11	 
	5.9 Governing Law
	 	 	12	 
	5.10 Counterparts
	 	 	12	 
	5.11 Successors and Assigns
	 	 	12	 
	5.12 Independent Advice
	 	 	12	 

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AMENDED AND RESTATED EXCHANGE RIGHTS AGREEMENT

THIS AGREEMENT dated as of June 1, 2006 and amends and restates in its entirety the Exchange Rights
Agreement made as of the 4th day of December, 2003.

AMONG:

TRIDENT RESOURCES CORP., a corporation existing under the laws of the State of
Delaware (“TRC”)

-and-

TRIDENT EXPLORATION CORP., an unlimited liability company existing under the
laws of the Province or Nova Scotia (“TEC”)

-and-

THE SHAREHOLDERS AND OPTIONHOLDERS OF TRIDENT EXPLORATION CORP. THAT ARE
SIGNATORIES HERETO

BACKGROUND:

	1.	 	TRC granted to and in favour of the Third Party TEC Common Shareholders the right to require
TRC to issue shares of TRC Common Stock in exchange for all or any part of the Third Party TEC
Common Shares held by the Third Party TEC Common Shareholders in the Exchange Rights
Agreement.
	 
	2.	 	TRC has agreed to grant to and in favour of the Optionholders who become party to this
Agreement, the right to require TRC to issue shares of TRC Common Stock in exchange for all or
any part of the Vested Options held by the Optionholders.
	 
	3.	 	As a result of the above, the parties to the Exchange Rights Agreement wish to amend and
restate the terms of such agreement.

     NOW THEREFORE in consideration of the respective covenants and agreements provided in this
Agreement and for other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the parties agree as follows:

ARTICLE 1

DEFINITIONS AND INTERPRETATION

1.1 Definitions

	 	 	In this Agreement, the following terms shall have the following meanings:

 

 

	 	 	“Agreement” means this amended and restated exchange rights agreement as amended,
supplemented or modified from time to time.
	 
	 	 	“Applicable Number” has the meaning attributed to it in Section 2.3.
	 
	 	 	“Board of Directors” means the board of directors of TRC.
	 
	 	 	“Business Day” means a day other than a Saturday, Sunday or a statutory holiday in the City
of Calgary, Alberta or a federally recognized holiday in the United States.
	 
	 	 	“Capital Reorganization” has the meaning attributed to it in Section 2.4.
	 
	 	 	“Clearance Certificate” has the meaning attributed to it in Section 2.5.
	 
	 	 	“Control” means:

	 	(i)	 	in relation to a body corporate, control of the body corporate,
and for the purposes of this Agreement, a Person or Persons acting in concert
control a body corporate and a body corporate is controlled by a Person or
Persons acting in concert if securities of the body corporate to which are
attached more than 50% of the votes that may be cast to elect directors of the
body corporate arc held, other than by way of security only, by or for the
benefit of that Person or Persons acting in concert and such securities are
sufficient to elect a majority of the directors of the body corporate, and
	 
	 	(ii)	 	in relation to an entity other than a body corporate, the
possession, directly or indirectly, of the power to direct the management and
policies of such entity, whether through ownership of voting securities, by
contract, by being the sole or controlling general partner of a limited
partnership or otherwise,

	 	 	and the terms “Controlling” and “Controlled” have meanings correlative to the foregoing.
	 
	 	 	“Control Tag Along Offer” has the meaning attributed to it in the Stockholder Agreement.
	 
	 	 	“Drag Along Notice” has the meaning attributed to it in the Stockholder Agreement.
	 
	 	 	“Effectively Outstanding Common Equity” means at any time the sum of the number of shares of
TRC Common Stock then outstanding plus the number of Third Party TEC Common Shares, then
outstanding, provided that:

	 	(i)	 	shares of TRC Common Stock or TEC Common Shares issuable upon
the exercise of options, warrants, securities convertible into such capital
stock and other rights to acquire such capital stock shall not constitute
outstanding shares of TRC Common Stock or outstanding TEC Common Shares for
purposes of calculating the foregoing until they are issued; and

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	 	(ii)	 	if, at any time, the number of outstanding TEC Common Shares
effectively owned by TRC is greater or less than the number of outstanding
shares of TRC Common Stock (whether as a result of a stock split, consolidation
or similar event or any other reason), then, for purposes of computing the
Effectively Outstanding Common Equity at that time:

	 	(A)	 	the number of shares of TRC Common Stock then
outstanding shall be deemed to be the number of shares of TRC Common
Stock actually outstanding multiplied by the Adjustment Factor;
	 
	 	(B)	 	the number of shares of TRC Common Stock held
by a Person shall be deemed to be equal to the number of outstanding
shares of TRC Common Stock actually held by that Person at the time
multiplied by the Adjustment Factor;
	 
	 	(C)	 	the Adjustment Factor will be the number of
outstanding TEC Common Shares effectively owned by TRC at the time
divided by the actual number of shares of TRC Common Stock then
outstanding (not counting shares of TRC Common Stock of which the
proceeds of issuance were used other than to fund a subscription for
TEC Common Shares by TRC or an entity Controlled by TRC); and
	 
	 	(D)	 	the number of outstanding TEC Common Shares
effectively owned by TRC at any time is the sum of:

	 	(1)	 	the number of TEC Common Shares
then owned by TRC; plus
	 
	 	(2)	 	for each entity which TRC
Controls, the number of TEC Common Shares then owned by such
entity multiplied by the percentage of the common equity of such
entity then owned by TRC;

	 	 	“Exchange Right” has the meaning attributed to it in Section 2.1 hereof.
	 
	 	 	“Exchange Rights Agreement” means the exchange rights agreement dated December 4, 2003 among
TRC, TEC and the shareholders of TEC that are signatories thereto.
	 
	 	 	“Liquidity Event” means an event which triggers a tag along right or a drag along right
under the Stockholder Agreement or an initial public offering of TRC.
	 
	 	 	“New Registration Rights Agreement” means the registration rights agreement dated January 5,
2006 among TRC, certain TRC Stockholders and certain holders of TEC Common Shares.
	 
	 	 	“NRLEI” means NRL Energy Investments Ltd., and its successors and assigns.

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	 	 	“Option Right” has the meaning attributed to it in Section 2.1 hereof.
	 
	 	 	“Optionholder” means any Person who holds stock options of TEC pursuant to the terms of the
Plan.
	 
	 	 	“Person” means any individual, partnership, limited partnership, limited liability company,
joint venture, syndicate, sole proprietorship, company or corporation with or without share
capital, unincorporated association, trust, trustee, executor, administrator or other legal
personal representative, regulatory body or agency, government or governmental agency,
authority or entity however designated or constituted.
	 
	 	 	“Plan” means the stock option plan of TEC dated effective August 1, 2002, as amended,
restated or supplemented from time to time.
	 
	 	 	“Registration Rights Agreement” means the third amended and restated registration rights
agreement dated January 5, 2006 among TRC, certain holders of TEC Common Shares and certain
TRC Stockholders, as amended, restated or supplemented from time to time.
	 
	 	 	“Stock Award Loan Program” means the stock award loan program of TRC established on June 23,
2005.
	 
	 	 	“Stockholder Agreement” means the third amended and restated stockholder agreement dated
March 29, 2005 among TRC, TEC, the TEC Shareholders and the holders of shares of TRC Common
Stock as amended, restated or supplemented from time to time.
	 
	 	 	“Stock Options” means stock options to purchase TEC Common Shares granted in accordance with
the Plan.
	 
	 	 	“Stock Reorganization” has the meaning attributed to it in Section 2.4.
	 
	 	 	“Subsidiary” has the meaning attributed to it for the purposes of the Business Corporations
Act (Alberta) and includes all indirect subsidiaries.
	 
	 	 	“Tag Along Offer” has the meaning attributed to in the Stockholder Agreement.
	 
	 	 	“Tax Act” means the Income Tax Act (Canada).
	 
	 	 	“TEC” means Trident Exploration Corp., an unlimited liability company existing under the
laws or the Province of Nova Scotia.
	 
	 	 	“TEC Common Shares” means Class A Common Shares in the capital of TEC.
	 
	 	 	“Third Party Offer” has the meaning attributed to it in the Stockholder Agreement.
	 
	 	 	“Third Party TEC Shareholders” means the holders of Third Party TEC Common Shares and the
holders of TEC Preference Shares, other than TRC, or (so long as

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	 	 	controlled by TRC), Aurora Energy, LLC, NexGen Energy Canada, Inc., Trident CBM Corp. or
NRLEI, or any other entity Controlled by TRC.
	 
	 	 	“Third Party TEC Common Shares” means TEC Common Shares which are not owned by TRC or an
entity Controlled by TRC.
	 
	 	 	“TRC” means Trident Resources Corp., a corporation incorporated pursuant to the laws of the
State of Delaware.
	 
	 	 	“TRC Common Stock” means the common stock of TRC.
	 
	 	 	“TRC Loan” means an advance, as debt, by TRC to TEC of the proceeds of any issuance of shares of TRC Common Stock.
	 
	 	 	“TRC Stockholder” means a holder of shares of TRC Common Stock.
	 
	 	 	“Trust” means The McNeil Family Irrevocable GST Trust.
	 
	 	 	“Vested Options” means Stock Options that have vested and are exercisable in accordance with
the Plan and any other instrument or document relating to such Stock Options provided that
if at any time a Stock Option is not vested or exercisable or has terminated or expired it
shall not be a Vested Option.

1.2 References and Headings

     The references “hereunder”, “herein” and “hereof” refer to the provisions of this Agreement
and references to Articles, Sections and Subsections herein refer to articles, sections or
subsections of this Agreement. Any reference to time shall refer to Calgary time. The headings of
the Articles, Sections, Schedules and any other headings, captions or indices herein are inserted
for convenience of reference only and shall not be used in any way in construing or interpreting
any provision hereof.

1.3 Statutory References

     Any reference to a statute shall include and shall be deemed to be a reference to such statute
and to the regulations made pursuant thereto, and all amendments made thereto and in force from
time to time, and to any statute or regulation that may he passed which has the effect of
supplementing the statute so referred to or the regulations made pursuant thereto.

1.4 Conflicts

     If there is any conflict or inconsistency between a provision of the body of this Agreement
and that of any document delivered pursuant to this Agreement, the provision of the body of this
Agreement shall prevail.

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1.5 Computation of Time Periods

     Except as expressly set out in this Agreement, the computation of any period of time referred
to in this Agreement shall exclude the first day and include the last day of such period. If the
time limited for the performance or completion of any matter under this Agreement expires or falls
on a day that is not a Business Day, the time so limited shall extend to the next following
Business Day.

ARTICLE 2

EXCHANGE RIGHT

2.1 Grant and Ownership of the Exchange Right

	 	(a)	 	TRC hereby grants to each Third Party TEC Common Shareholder that is party
hereto, the right (the “Exchange Right”) to require TRC to exchange all or any part of
the Third Party TEC Common Shares held by such Third Party TEC Common Shareholder for shares of TRC Common Stock, without payment of any consideration in accordance with the
provisions of this Agreement.
	 
	 	(b)	 	TRC hereby grants to each Optionholder that is party hereto, the right (the
“Option Right” and together with the Exchange Right, the “Rights”) to require TRC to
exchange all or any part of the Vested Options held by such Optionholder for shares of
TRC Common Stock, without payment of any other consideration (other than the exercise
price related to the Vested Options) in accordance with the provisions of this
Agreement.

2.2 General Exercise of Exchange Right

     The Exchange Right and the Option Right shall be and remain vested in each Third Party TEC
Common Shareholder and Optionholder, respectively, that is party hereto in respect of each Third
Party TEC Common Share and Vested Option held by such Third Party TEC Common Shareholder and
Optionholder, respectively. Once a Third Party TEC Common Share or Vested Option has been
exchanged in accordance with Section 2.1, it will cease to have any further right of exchange.

2.3 Exchange Consideration

     Subject to the adjustments provided by Section 2.4, the number (the “Applicable Number”) of
shares of TRC Common Stock issuable for each Third Party TEC Common Share or Vested Option
exchanged pursuant to Section 2.1 from time to time is established on the date hereof as one (1),
notwithstanding that a Third Party TEC Common Shareholder or Optionholder becomes party hereto
after the date hereof.

2.4 Adjustment

	 	(a)	 	If there is a change in the number of TEC Common Shares or the number of shares
of TRC Common Stock outstanding from time to time as a result of a stock split, reverse
split, stock dividend, subdivision, consolidation or similar change in

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	 	 	 	the TEC Common Shares or shares of TRC Common Stock or if there is a
reclassification, reorganization, merger or amalgamation or similar change in the
capital of TRC (collectively, an “Event”), the Applicable Number shall be adjusted
to be a number of shares of TRC Common Stock that would be received in respect of
one TEC Common Share or Vested Option, as applicable, immediately following the
Event if the Rights have been exercised in respect of one TEC Common Share or Vested
Option, as applicable, immediately before the Event.

	 	(b)	 	If TRC makes a distribution in respect of the shares of TRC Common Stock
(whether by a dividend or otherwise) and the distribution (i) is funded by a
disposition by TRC or any of its Subsidiaries of TEC Common Shares, (ii) is a dividend
in kind of TEC Common Shares; (iii) is the proceeds of an advance of debt to TRC; or
(iv) is a similar occurrence: then the Applicable Number shall be adjusted by TRC, TEC
and the relevant TEC Third Party Shareholder and/or Optionholder in good faith
effective on the record date for the TRC distribution to the number that results in the
following being equal:

	 	(i)	 	the value of the shares of TRC Common Stock that would be
received for each TEC Common Share or Vested Option, as applicable, if the
Rights were exercised immediately after such record date, calculated using the
adjusted Applicable Number and after taking into account the dividend or other
distribution; and
	 
	 	(ii)	 	the value that the shares of TRC Common Stock that would have
been issued if the Rights were exercised immediately before such record date,
calculated using the unadjusted Applicable Number and without taking into
account the dividend or other distribution;

	 	 	provided that if such Parties have not agreed on the adjustment, any of them may refer the
determination to binding arbitration in accordance with Article 11 of the Stockholder
Agreement.

2.5 Exercise Instructions

     Subject to the terms and conditions herein set forth, a Third Party TEC Common Shareholder or
Optionholder shall be entitled to exercise the Rights with respect to all or any part of the Third
Party TEC Common Shares or Vested Options, as applicable, registered in the name of such Third
Party TEC Common Shareholder or Optionholder. To exercise the Rights, the Third Party TEC Common
Shareholder or Optionholder shall deliver to TRC, by personal delivery or express courier, at its
principal office in Calgary, Alberta or at such other places in Canada or the United States that
TRC may from time to time designate by written notice to the Third Party TEC Common Shareholder or
Optionholder (a) the certificates representing the Third Party TEC Common Shares or the agreement
representing the Vested Options, as applicable, which such Third Party TEC Common Shareholder or
Optionholder, desires TRC to exchange, duly endorsed in blank for transfer or accompanied by a duly
executed stock power with respect to the Third Party TEC Common Shares, and an assignment and
cancellation

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agreement in form and substance satisfactory to TRC, with respect to the Vested Options, and
such additional documents and instruments as TRC may reasonably require, (b) with respect to the
Vested Options, the exercise price with respect to each such Vested Option, in a form or payment
acceptable to TRC, and (c) a duly completed notice of exercise of the Rights stating (i) that the
Third Party TEC Common Shareholder or Optionholder thereby exercises the Rights so as to require
TRC to exchange the number of Third Party TEC Common Shares or Vested Options, as applicable,
specified therein, (ii) that such Third Party TEC Common Shareholder or Optionholder has good title
to and owns all such Third Party TEC Common Shares or Vested Options, as applicable, to be acquired
by TRC free and clear of all liens, claims and encumbrances (other than with respect to the Vested
Options, any lien, claim or encumbrance relating to the Stock Award Loan Program) and that such
Third Party TEC Shareholder or Optionholder is or is not (as applicable) a non-resident of Canada
for the purposes of the Tax Act, (iii) the names in which the certificates representing the shares
of TRC Common Stock issuable in connection with the exercise of the Rights are to be issued, and
(iv) the names and addresses of the person to whom such new certificates should be delivered, and
(d) payment (or evidence satisfactory to TRC of payment) of the taxes (if any) payable as
contemplated by Section 2.7 of this Agreement. If only a part of the Third Party TEC Common Shares
or Vested Options represented by any certificate or certificates, or agreement or agreements,
delivered to TRC are to he exchanged by TRC under the Rights, a new certificate or agreement for
the balance of such Third Party TEC, Common Shares or Vested Options shall be issued to the holder
at the expense of TEC.

     If such Third Party TEC Common Shareholder or Optionholder is a non-resident of Canada for the
purposes of the Tax Act, then to exercise the Rights, the Third Party TEC Common Shareholder or
Optionholder must deliver, together with the certificates and the notice to exercise, cash in an
amount equal to 25% of the fair market value of the shares of TRC Common Stock issuable in
connection with the exercise of such Rights, or a certificate issued to the non-resident under
subsection 116(2) of the Tax Act in respect of the exercise of such Rights (a “Clearance
Certificate”) and cash in an amount equal to 25% of the amount, if any, by which the fair market
value of the shares of TRC Common Stock issuable in connection with the exercise of such Rights
exceeds the “certificate limit”, as defined in subsection 116(2) of the Tax Act, fixed in such
Clearance Certificate.

     If the Exchange Right, is being exercised in relation to a Third Party Offer, the exercise
notice shall specify the particulars of such offer including the closing date of same and whether
the offer is a Tag Along Offer, Control Tag Along Offer or is related to a Drag Along Notice. The
notice may require that such exchange not be completed except concurrently with the completion of
the purchase and sale contemplated by such offer, provided that if such purchase and sale is not
completed, the notice to exercise shall be deemed to be revoked and any shares or TRC Common Stock
issued shall be cancelled and returned to treasury.

2.6 Delivery of Exchange Consideration; Effect of Exercise

     As soon as practicable, and in any event no later than the completion or the purchase and sale
contemplated by a Third Party Offer or the registration of registrable securities pursuant to any
registration right granted to a Third Party TEC Shareholder with respect to the Exchange Right,
after receipt by TRC of the certificate representing the Third Party TEC Common Shares

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duly endorsed for transfer to TRC, or the assignment and cancellation agreement with respect
to the Vested Options which the Third Party TEC Common Shareholder or Optionholder, as applicable,
desires TRC to exchange under the Rights (together with such documents and instruments of transfer
and a duly completed form of notice of exercise of the Rights (and payment of taxes, if any, or
evidence thereof)), deliver or cause to be delivered to the Third Party TEC Common Shareholder or
Optionholder with respect to such Third Party TEC Common Shares or Vested Options, as applicable,
(or to such other persons, if any, properly designated by the Third Party TEC Common Shareholder or
Optionholder), the certificates for the number of shares of TRC Common Stock issuable in connection
with the exercise of the Rights, which shares shall be duly issued, fully paid and non-assessable,
less any tax required to be deducted or withheld by TRC, provided, however, that no such delivery
shall be made unless and until the Third Party TEC Shareholder or Optionholder requesting the same
shall have paid (or provided evidence satisfactory to TRC of the payment of) the taxes (if any)
payable as contemplated by Section 2.7 or this Agreement. Immediately upon issuance of the shares
of TRC Common Stock by TRC, as provided in Section 2.6, the exchange shall be deemed to have
occurred, and the Third Party TEC Common Shareholder or Optionholder of such Third Party TEC Common
Shares or Vested Options, as applicable, shall be deemed to have transferred to TRC all of its
right, title and interest in and to such Third Party TEC Common Shares or Vested Options, as
applicable, and shall cease to be a holder of such Third Party TEC Common Shares or Vested Options,
as applicable, and shall not be entitled to exercise any of the rights of a holder in respect
thereof. Concurrently with such Third Party TEC Common Shareholder or Optionholder ceasing to he a
holder of Third Party TEC Common Shares or Vested Options, as applicable, the Third Party TEC
Common Shareholder or Optionholder shall be considered and deemed for all purposes to be the holder
of the shares of TRC Common Stock delivered to it pursuant to the Rights.

2.7 Stamp or Other Transfer Taxes

     TRC has no obligation to pay any documentary, stamp, transfer or other similar taxes that may
be payable in respect of any transfer involved in the issuance or delivery of any shares of TRC
Common Stock pursuant to the Rights. TRC may condition the issuance of shares of TRC Common Stock
pursuant to an exercise of the Rights upon the provision by the holder of the Third Party TEC
Common Shares or Vested Options so exchanged of evidence satisfactory to TRC that any such tax has
been or will be paid in full.

2.8 Reservation of TRC Common Stock

     TRC hereby represents, warrants and covenants that it has reserved for issuance and will at
all times keep available, free from pre-emptive and other rights, out of its authorized and
unissued capital stock such number of shares of TRC Common Stock as are now and may hereafter be
required to enable and permit TRC to meet its obligations hereunder.

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ARTICLE 3

NEW SHAREHOLDERS

3.1 Party to Agreement

     Any transferee of Third. Party TEC Common Shares who is not then a TEC Shareholder, shall
prior to the consummation of, and as a condition to, such Transfer, execute and deliver to TEC and
TRC a written agreement in the form attached hereto as Schedule “A” and such Person shall
thereafter be a party for all purposes of this Agreement. A Person (including without limitation
an Optionholder) may become a party to this Agreement by executing and delivering to TEC and TRC a
written agreement in the form attached hereto as Schedule “A”.

ARTICLE 4

TERMINATION

4.1 Termination

     This Agreement will come into force and effect as of the date hereof and will automatically
terminate on the date there ceases to be any outstanding Third Party TEC Common Shares or Stock
Options and any rights to acquire the foregoing.

ARTICLE 5

GENERAL

5.1 Waiver, Amendment

	 	(a)	 	Any waiver of, or amendment to, any provision of this Agreement shall require
the agreement of TRC, Third Party TEC Common Shareholders and Optionholders holding at
least 95% of the Third Party TEC Common Shares and Vested Options held by Third Party
TEC Common Shareholders and Optionholders, respectively, party hereto.
	 
	 	(b)	 	Notwithstanding any provision herein to the contrary, this Agreement may be
amended to add additional Third Party TEC Common Shareholders or Optionholders by
agreement of TRC and such Third Party TEC Common Shareholders or Optionholders.
	 
	 	(c)	 	No waiver of any provision of this Agreement will constitute a waiver of any
other provision nor will any waiver of any provision of this Agreement constitute a
continuing waiver unless otherwise expressly provided.

5.2 New Parties

     A person may become a party hereto with the consent of TEC and TRC by executing and delivering
to TRC a Shareholder Undertaking in the form attached hereto as Schedule “A”.

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5.3 Notices

     All notices, offers, requests and other communications to a party provided for hereunder shall
be in writing, shall be personally delivered, express couriered or sent via facsimile transmission
and shall, unless otherwise expressly provided herein, be effective (a) if received during normal
business hours, when received, or (b) if received after normal business hours or on a day that is
not a Business Day, on the next Business Day, in each case at the address or facsimile number
specified for the party in Schedule “B” hereto or in the Form of written agreement attached hereto
as Schedule “A”, as applicable. A party may change its address or facsimile number for delivery by
notice to the other parties in the manner set forth herein, and such changed address or facsimile
number for notices, offers, requests and other communications provided for hereunder, shall be
effective for all purposes of this Agreement.

5.4 Time of Essence

     Time is of the essence of this Agreement.

5.5 Gender and Number

     In this Agreement, unless the context otherwise requires, words indicating the singular
include the plural and vice versa and words indicating gender includes all genders.

5.6 Further Assurances

     Each of TRC, TEC, the Optionholders, the TEC Shareholders and the TRC Stockholders will use
reasonable efforts to take all steps, execute all documents and do all acts and things as may be
reasonably with such party’s power to implement to their full extent the provisions of this
Agreement.

5.7 Invalidity of Provisions

     Each of the provisions contained in this Agreement is distinct and severable and a declaration
of invalidity or unenforceability of any provision by a court of competent jurisdiction will not
affect the validity or enforceability of any other provision.

5.8 Entire Agreement; Termination of Prior Agreements

     This Agreement, the Stockholder Agreement, the Registration Rights Agreement and the New
Registration Rights Agreement constitute the entire agreement between the parties hereto pertaining
to the subject matter referred to in this Agreement, the Stockholder Agreement, the Registration
Rights Agreement and the New Registration Rights Agreement. There are no warranties,
representations or agreements between the parties in connection with that subject matter except as
specifically set forth or referred to in this Agreement, the Stockholder Agreement, the
Registration Rights Agreement and the New Registration Rights Agreement. No reliance is placed on
any representation, opinion, advice or assertion of fact made by any party hereto, or its
directors, officers and agents, to any other party hereto or its directors, officers and agents,
except to the extent that it has been reduced to writing and included as a term referred to in this
Agreement, the Stockholder Agreement, the Registration Rights Agreement and the New

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Registration Rights Agreement. Accordingly, there will be no liability, either in tort or in
contract, assessed in relation to any representation, opinion, advice or assertion of fact, except
to the extent stated above.

5.9 Governing Law 

     This Agreement is to be governed and construed in accordance with the laws of New York.

5.10 Counterparts 

     This Agreement may be signed in counterpart and each counterpart will constitute an original
document and all counterparts, taken together, will constitute one and the same instrument. A
counterpart will include any written documents (including facsimile) in which a person agrees to be
bound by the terms of this Agreement.

5.11 Successors and Assigns

     Except as otherwise provided herein, this Agreement shall bind and enure to the benefit of and
be enforceable by TRC and TEC and their successors and assigns, and each TEC Shareholder and
Optionholder and their respective successors and permitted assigns (and heirs, executors and
administrators in the case of individual TEC Shareholders or Optionholders), so long as they
beneficially own stock in the capital of TEC or Stock Options, as applicable.

5.12 Independent Advice

     Each TEC Shareholder and Optionholder acknowledges having been provided with an opportunity to
consider this Agreement and to seek independent legal advice with respect to it.

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

	 	 	 	 	 	 	 
	TRIDENT RESOURCES CORP.	 	TRIDENT EXPLORATION CORP.
	 
	 	 	 	 	 	 
	Per:

	 	/s/ Paul O’Donoghue
	 	Per:
	 	/s/ Paul O’Donoghue
	 

	 	 
	 	 	 	 
	Name:

	 	Paul O’Donoghue	 	Name:	 	Paul O’Donoghue
	Title:

	 	Secretary & Treasurer	 	Title:	 	Vice - President, Corporate and Strategic Development
	 
	 	 	 	 	 	 
	981443 ALBERTA LTD., General
Partner of TRIDENT
EXPLORATION (2003) LIMITED
PARTNERSHIP I	 	981443 ALBERTA LTD., General
Partner of TRIDENT EXPLORATION
LIMITED PARTNERSHIP
	 
	 	 	 	 	 	 
	Per:

	 	/s/ Paul O’Donoghue
	 	Per:
	 	/s/ Paul O’Donoghue
	 

	 	 
	 	 	 	 
	Name:

	 	Paul O’Donoghue	 	Name:	 	Paul O’Donoghue
	Title:

	 	Secretary & Treasurer	 	Title:	 	Secretary & Treasurer

-13-EX-4.9

Exhibit 4.9

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933. THIS LEGEND SHALL
BE ENDORSED UPON ANY WARRANT ISSUED IN EXCHANGE FOR THIS WARRANT.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A STOCKHOLDER AGREEMENT DATED AS OF
MARCH 29, 2005, AS SUCH AGREEMENT MAY BE AMENDED, RESTATED OR MODIFIED FROM TIME TO TIME. THE
AGREEMENT CONTAINS RESTRICTIONS ON THE RIGHT TO VOTE, TRANSFER, SELL, ASSIGN, PLEDGE, HYPOTHECATE
OR OTHERWISE DEAL WITH SUCH SECURITIES EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THE AGREEMENT.
ANY TRANSFEREE OF THESE SECURITIES SHALL BE SUBJECT TO THE TERMS OF SUCH AGREEMENT. A COPY MAY BE
OBTAINED FROM THE SECRETARY OF TRIDENT RESOURCES CORP. BY WRITING TO TRIDENT RESOURCES CORP. AT ITS
PRINCIPAL OFFICE.

 

      

			
	Purchase Date:                         	 	Number of Shares:                         

 

COMMON STOCK PURCHASE WARRANT

To Purchase Shares of Common Stock, $0.0001 par value, of

TRIDENT RESOURCES CORP.

     THIS CERTIFIES that, for value received,                          (the “Investor”) together with its
successors and assigns (the Investor and its successors and permitted assigns, individually or
collectively, the “Holder”), is entitled, upon the terms and subject to the conditions
hereinafter set forth, at any time (subject to the provisions of Section 1.3 hereof) on or prior to
the Termination Date (as defined in Section 1.2 hereof), but not thereafter, to subscribe for and
purchase, from TRIDENT RESOURCES CORP., a Delaware corporation (the “Company”), the number
of shares shown above (subject to adjustment pursuant to Section 2 and Section 12 hereof, the
“Shares”) of Common Stock, par value $0.0001 per share (the “Common Stock”), at an exercise
price of $                         per Share (subject to adjustment pursuant to Section 12 hereof, the
“Exercise Price”).

     1. Exercise of Warrant.

          1.1
Exercisable Amount. This Warrant shall be exercisable for                          shares of
Common Stock, subject to adjustment pursuant to Section 2 and Section 12 hereof.

          1.2 Termination Date. This Warrant shall terminate on the date (the “Termination
Date”) which is the earlier to occur of (i) March 10, 2013 (which date is subject to extension
to the extent that any shares of Series A Preferred Stock associated with this Warrant have not
been redeemed as of that date, such extension to continue until the date upon which all shares of
Series A Preferred Stock

 

 

associated with this Warrant have been redeemed and this Warrant shall have been exercised in
accordance with Section 1.3 below), or (ii) the date upon which a Liquidation (as defined in
Section 3(a) of the Certificate of Designation of Series A Cumulative Preferred Stock of Trident
Resources Corp. filed with the Secretary of State of the State of Delaware on March 28, 2005 (the
“Certificate of Designation”)) is commenced, at which time this Warrant shall expire and be
of no further force or effect. The Holder shall have no right to exercise this Warrant in
connection with any such Liquidation and, upon termination, no other rights whatsoever with respect
to this Warrant or the Shares.

          1.3 Exercise. The purchase rights represented by this Warrant are exercisable by the
Holder only upon the redemption of one or more shares of the Company’s Series A Cumulative
Preferred Stock (“Series A Preferred Stock”) held by the Holder, and then only for one (1)
share of Common Stock (subject to adjustment as provided in Section 2 and Section 12) for each such
share of Series A Preferred Stock so redeemed, at any time before the close of business on the
Termination Date by the surrender of this Warrant and a duly executed Notice of Exercise (the
“Notice of Exercise”) in the form annexed hereto, at the office of the Company set forth in
the Purchase Agreement (as defined in Section 2.4), or such other office or agency of the Company
as it may designate by notice in writing to the Holder at the address set forth in the Purchase
Agreement. The Holder may, at the Holder’s option, pay the Exercise Price by depositing with the
Company, not later than the second business day prior to the Redemption Date (as set forth in the
Certificate of Designation) of the shares of Series A Preferred Stock to be redeemed concurrently
with the exercise of this Warrant, cash, a certified bank or cashier’s check or electronic wire
transfer to an account designated by the Company in the full amount of the Exercise Price (the
“Exercise Price Deposit”). If the Holder does not make the Exercise Price Deposit, the
Holder authorizes and directs the Company to apply and offset the Company’s obligation (assuming
for this purpose that the Company has such obligation under the Certificate of Designation
irrespective of any Debt Restriction (as defined in the Certificate of Designation) or limitation
imposed by applicable law) to pay to the Holder the Redemption Price (as that term is defined in
the Certificate of Designation) of the share or shares of Series A Preferred Stock to be redeemed
concurrently with the exercise of this Warrant against the Exercise Price in respect of this
Warrant (or portion of this Warrant being exercised). Upon application of the Exercise Price
Deposit to the aggregate Exercise Price for the Shares to be purchased, or the offset of the
aggregate Redemption Price of the Series A Preferred Stock being redeemed concurrently with the
exercise of this Warrant against the aggregate Exercise Price for the Shares to be purchased
hereunder, the Holder shall (subject to Section 1.4 hereof) be entitled to receive a certificate
for the applicable number of Shares issuable hereunder. The Company shall notify the Holder that
this Warrant shall be exercisable concurrently with the redemption of one or more shares of Series
A Preferred Stock held by the Holder at the time or times the Company notifies the Holder of such
redemption as provided in Section 5(d)(i) of the Certificate of Designation. If in connection with
any such redemption the Holder does not surrender this Warrant and the Notice of Exercise to the
Company as above provided by the earlier of (i) the twentieth business day following the date of
Holder’s receipt of such notice from the Company and (ii) the Redemption Date, then the purchase
rights represented by this Warrant shall be exercised automatically without further act by the
Holder, and the Holder authorizes and directs the Company to apply and offset the Company’s
obligation (assuming for this purpose that the Company has such obligation under the Certificate of
Designation irrespective of any Debt Restriction (as defined in the Certificate of Designation) or
limitation imposed by applicable law) to pay to the Holder the aggregate Redemption Price payable
by the Company to the Holder in respect of the redemption of the shares of Series A Preferred Stock
to be redeemed concurrently with the exercise of this Warrant against
the aggregate Exercise Price in respect of this Warrant (or the portion of this Warrant being exercised). With respect to any
redemption of shares of Series A Preferred Stock at the Holder’s option under Section 5(c) of the
Certificate of Designation, the Holder shall surrender this Warrant and the Notice of Exercise to
the Company with the notice of such redemption to the Company by the Holder as provided in clause
e) or f) of Section 5(d)(i) of the Certificate of Designation.

 

 

          1.4 Withholding Obligations. Notwithstanding anything to the contrary contained
herein:

          (a) The Holder acknowledges that if the Holder is not a resident of Canada for the purposes of
the Income Tax Act (Canada) (the “Tax Act”) at the time the Holder redeems any Series A
Preferred Stock, the Company is required under the provisions of the Tax Act to withhold and remit
to the Receiver General of Canada 25% of the amount, if any, by which the aggregate amount payable
by the Company to the Holder for the redemption of such Series A Preferred Stock (the
“Redemption Amount”) exceeds the amount of the certificate limit fixed in a certificate of
compliance issued by the Minister of National Revenue (Canada) to the Holder pursuant to section
116 of the Tax Act in respect of the redemption of such Series A Preferred Stock (the
“Compliance Certificate”)(such amount required to be withheld and remitted being the
“Remittance Obligation”).

          (b) As security for the Company’s obligations under Section 116 of the Tax Act relating to the
redemption of Series A Preferred Stock, including the Remittance Obligation and any cost, expenses
and liabilities of the Company associated with liquidating such security to pay the Remittance
Obligation (collectively, the “116 Obligations”), the Holder agrees that, unless the Holder
represents and warrants in the Notice of Exercise that the Holder is, and will be at the time of
the redemption of the Series A Preferred Stock to be redeemed in connection with the exercise of
this Warrant, a resident of Canada for the purposes of the Tax Act, on the exercise of this Warrant
the Company shall be entitled to withhold that number of shares of Common Stock purchased by the
Holder on the exercise of this Warrant (the “Withheld Stock”) that in the aggregate have a
value as at. such date, as determined pursuant to section 2.3 hereof, equal to 115% of the amount
the Company determines, acting reasonably, is sufficient to satisfy the 116 Obligations in full,
taking into account any deduction or withholding relating to the sale of such Withheld Stock.

          (c) The Holder and the Company agree that the Withheld Stock shall be dealt with as follows:

               (i) If a Compliance Certificate is delivered to the Company before 2:00 p.m. (Calgary time) on
the Remittance Date (as determined pursuant to Section 1.5 below) and the certificate limit fixed
in such Compliance Certificate is not less than the Redemption Amount, then the Withheld Stock
shall be released to the Holder;

               (ii) If a Compliance Certificate is delivered to the Company before 2:00 p.m. (Calgary time)
on the Remittance Date and the certificate limit fixed in such Compliance Certificate is less than
the Redemption Amount, then that number of the Withheld Stock that in aggregate have a value, as
determined pursuant to Section 2.3 hereof, which is equal to 28.75% of the certificate limit fixed
in such Compliance Certificate shall be released to the Holder;

               (iii) If any Withheld Stock has not been released to the Holder pursuant to paragraph (i) or
(ii) above, by 2:00 p.m. (Calgary time) on the Remittance Date, the Company, as agent for the
Holder, shall be entitled to sell, lease, assign, give options to purchase or otherwise dispose of,
in one or more parcels at any public or private sale, at any exchange, broker’s board or elsewhere,
on such terms and conditions as the Company may deem advisable, at such prices as it may deem
satisfactory and for cash or on credit or for future delivery, such portion of the Withheld Stock
as the Company determines, acting reasonably, is required to satisfy the full amount of the 116
Obligations solely from the net proceeds received by the Company from the sale of such Withheld
Stock and the Holder irrevocably directs the Company to remit such amount of the net proceeds to
the Receiver General. of Canada in respect of the Company’s Remittance Obligation as is required
under Section 116(5) of the Tax Act. To the extent the net proceeds from the sale by the Company
of the Withheld Stock exceeds the amount

 

 

required to satisfy the 116 Obligations in full, the Company shall release such proceeds
together with the unsold balance of the Withheld Stock, if any, to the Holder; and

               (iv) Notwithstanding the foregoing, the Company shall have no duties or responsibilities to
the Holder with respect to the Withheld Stock, or any rights or distributions associated therewith
(whether by virtue of any agency relationship or otherwise), and the Holder agrees that the Company
will not be liable for any actions taken in respect of the Withheld Stock, or any rights or
distributions associated therewith, including (for purposes of clarity) any actions relating to the
disposition of the Withheld Stock pursuant to paragraph 1.4(c)(iii), or any liability arising as a
result of any error of judgment or for any act done or omitted or for any mistake of law or fact.

          1.5 Remittance Date. The Remittance Date shall be 20 days after the end of the month
in which the redemption of the applicable Series A Preferred associated with this Warrant occurred
unless, on or before 2:00 p.m. (Calgary time) on such date:

	 	(a)	 	a letter addressed to the Company from the Canada Revenue Agency
(“CRA”) in respect of the Holder’s application for a Compliance Certificate is
delivered to the Company;
	 
	 	(b)	 	such letter is in a form acceptable to the Company; and
	 
	 	(c)	 	such letter advises that the Company’s Remittance Obligation in respect of the
redemption of the applicable Series A Preferred Stock is not to be remitted to the CRA
unless requested by the CRA;

in which case the Remittance Date shall be the date specified by the CRA for the remittance of all
or any portion of the Remittance Obligation by the Company.

          1.6 Notwithstanding the provisions of Sections 1.4 and 1.5, if at any time after the date
hereof the Company shall determine acting reasonably that any change in applicable law or in the
interpretation thereof requires it to withhold and remit a greater or lesser amount, or remit an
amount at an earlier or later time, to the Receiver General of Canada than currently provided for
in section 116 of the Tax Act (a “Change in Law”), then the Company shall be entitled to,
as applicable:

	 	(a)	 	treat any such additional obligations arising from or relating to the Change in
Law as 116 Obligations for the purposes of paragraph 1.4(b) hereof and shall be
entitled to withhold, as security for such additional obligations and on the same terms
as provided in paragraph 1.4(b), such additional amounts of Common Stock purchased by
the Holder on the exercise of this Warrant as it would be entitled to withhold in
accordance with paragraph 1.4(b) hereof if the additional obligations were 116
Obligations; or
	 
	 	(b)	 	treat any such lesser obligations arising from or relating to the Change in Law
as 116 Obligations for the purposes of paragraph 1.4(b) hereof and shall be entitled to
withhold, as security for such lesser obligations and on the same terms as provided in
paragraph 1.4(b), such lesser amounts of Common Stock purchased by the Holder on the
exercise of this Warrant as it would be entitled to withhold in accordance with
paragraph 1.4(b) hereof if the lesser obligations were 116 Obligations; or
	 
	 	(c)	 	treat the Remittance Date as such earlier or later time as it determines,
acting reasonably is sufficient to enable it to comply with such Change in Law.

 

 

     2. Adjustment of Shares.

          2.1 Minimum Return. If upon exercise of this Warrant the Compounded Return (as
defined in Section 2.4) which would be realized by the Holder with respect to the Shares issuable
upon exercise and the shares of Series A Preferred Stock then being redeemed concurrently with such
exercise would be less than the Minimum Return (as defined in Section 2.4) as of the date of such
redemption and exercise, then the number of Shares issued in connection with such exercise shall be
increased so that the Holder’s Compounded Return will be equal to the Minimum Return upon
completion of the redemption and exercise.

          2.2 Maximum Return. If upon exercise of this Warrant the Compounded Return which
would be realized by the Holder with respect to the Shares issuable upon exercise and the shares of
Series A Preferred Stock then being redeemed concurrently with such exercise would exceed the
Maximum Return (as defined in Section 2.4) as of the date of such redemption and exercise, then the
number of Shares issued in connection with such exercise shall be reduced so that the Holder’s
Compounded Return will be equal to the Maximum Return upon completion of the redemption and
exercise.

          2.3 Valuation of Common Stock. All Shares issuable or issued hereunder shall be
valued as provided in Section 5(f) of the Certificate of Designation.

          2.4 Definitions.

“Compounded Return” shall mean the compound, pre-tax, annual rate of return on the initial
investment of the Investor upon the purchase of the Unit (as defined in this Section 2.4) with
which this Warrant is associated from the Company, taking into account as investment return all
cash paid and/or shares of Common Stock issued or issuable by the Company as Dividends on the
associated share of Series A Preferred Stock, and the value of any Common Stock issued or issuable
by the Company hereunder. For purposes of determining “Compounded Return” realized by the Holder:
(a) only the purchase price of the Unit shall be considered as the initial investment, and neither
the Exercise Price hereunder nor any Exercise Price Deposit nor any payments for Excess Shares
pursuant to Section 5 hereof shall be considered to be part of such initial investment, (b) the
Redemption Price received or to be received by the Holder (or applied by the Company as a credit
against the Exercise Price hereunder) for the associated share of Series A Preferred Stock shall
not be included as investment return, and (c) the value of shares of Common Stock issuable by the
Company under this Warrant will be determined in accordance with the provisions of Section 2.3
hereof.

“Dividends” shall mean Regular Dividends as such term is defined in the Certificate of
Designation.

“Issue Date” shall mean                         .

“Maximum Return” shall mean, with respect to each date upon which any portion of this
Warrant is exercised, (a) if such date of exercise of this Warrant is before the first anniversary
date of the Issue Date, 30% per annum; or (b) if such date of exercise of this Warrant is on or
after the first anniversary date of the Issue Date but before the second anniversary date of the
Issue Date, 25% per annum; or (c) if such date of exercise of this Warrant is on or after the
second anniversary date of the Issue Date but before the third anniversary date of the Issue Date,
22% per annum; or (d) if such date of exercise of this Warrant is on or after the third anniversary
date of the Issue Date but before the fourth anniversary date of the Issue Date, 20% per annum; or
(e) if such date of exercise of this Warrant is on or after the fourth anniversary date of the
Issue Date but before the fifth anniversary date of the Issue Date, 19% per annum; or (f) if such
date of exercise of this warrant is on or after the fifth anniversary date of the Issue Date, 18%
per

 

 

annum, provided, that the Maximum Return set forth in (f) shall be deemed to adjust upward to equal
the Minimum Return if the Minimum Return set forth in (d) of the definition of Minimum Return
exceeds 18%.

“Minimum Return” shall mean, with respect to each date upon which any portion of this
Warrant is exercised, (a) if such date of exercise of this Warrant is before the first anniversary
date of the Issue Date, 19% per annum; or (b) if such date of exercise of this Warrant is on or
after the first anniversary date of the Issue Date but before the second anniversary date of the
Issue Date, 17% per annum; or (c) if such date of exercise of this Warrant is on or after the
second anniversary date of the Issue Date, but on or before the eighth anniversary date of the
Issue Date, 15% per annum; or (d) if such date of exercise of this Warrant is after the eighth
anniversary date of the Issue Date, the sum of 15% per annum plus 1% per annum for each year or
portion thereof that has elapsed from and after the eighth anniversary date of the Issue Date.

“Purchase
Agreement” shall mean the Subscription Agreement dated
                by and between the
Company and the Holder hereof relating to the Holder’s purchase of one or more Units.

“Unit” shall mean a unit consisting of one (1) share of Series A Preferred Stock and a
Warrant to purchase one (1) share of Common Stock (subject to adjustment as set forth in Section 2
and Section 12 hereof).

     3. Issuance of Stock and New Warrant; No Fractional Shares or Scrip. Certificates for
the Shares purchased hereunder and, unless this Warrant has been fully exercised, a new Warrant
representing the portion of the Shares with respect to which this Warrant shall not then have been
exercised shall be delivered to the Holder promptly after the date on which this Warrant shall have
been exercised as aforesaid. The Company covenants that all Shares which may be issued upon the
exercise of rights represented by this Warrant will, upon exercise of the rights represented by
this Warrant, be fully paid and nonassessable and free from all issue taxes, liens and charges in
respect of the issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue). The Company agrees that the Shares so issued shall be and be
deemed to be issued to the Holder as the record owner of such Shares as of the close of business on
the date on which this Warrant shall have been exercised as aforesaid. With respect to the
issuance of any fraction of a Share called for upon the exercise of this Warrant, such fractional
Share shall be rounded to the nearest whole share, the Company may at its option pay the Holder
cash in the amount equal to the fair market value of such fractional share, such value to be
determined in accordance with Section 2.3 hereof. The Company further covenants to use its
reasonable efforts to cause its Certificate of Incorporation to be amended to increase the
authorized number of shares of Common Stock should it have an insufficient number of authorized but
unissued shares of Common Stock at the time of the exercise of this Warrant.

     4. Charges, Taxes and Expenses. Issuance of certificates for the Shares upon the
exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax
or other incidental expense in respect of the issuance of such certificate, all of which taxes and
expenses shall be paid by the Company, and such certificates shall be issued in the name of the
Holder or, subject to compliance with applicable laws, including, without limitation, applicable
securities laws, and the consent of the Company (not to be unreasonably withheld), in such name or
names as may be directed by the Holder; provided, however, that in the event
certificates for Shares are to be issued in a name other than the name of the Holder, this Warrant
when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the Holder; and provided further, that upon any transfer involved in
the issuance or delivery of any certificates for the Shares, the Company may require, as a
condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax or other
charge or expense incidental thereto.

 

 

     5. Option to Purchase following Adjustment for Maximum Return. In the event that the
number of Shares issued upon exercise of this Warrant is reduced pursuant to Section 2.2 above, the
Holder shall have the option to purchase the Shares that would have been issued but for such
reduction (the “Excess Shares”). Such option may be exercised by delivery to the Company
of the Notice of Option Exercise (the “Notice of Option Exercise”) form annexed hereto,
duly executed at the office of the Company set forth in the Purchase Agreement (or such other
office or agency of the Company as it may designate by notice in writing to the Holder at the
address set forth in the Purchase Agreement, together with an amount (paid in cash, certified bank
or cashier’s check or electronic wire transfer to an account designated by the Company) equal to
the value of Excess Shares determined in accordance with Section 2.3 hereof. The Notice of Option
Exercise and amount payable in accordance with this Section 5 shall be delivered to the Company not
later than five business days after the date of exercise of this Warrant, except that, with respect
to the exercise of this Warrant in connection with a Qualified Public Offering (as defined in the
Certificate of Designation), such Notice of Option Exercise and deposit shall be made not later
than ten business days after the date on which the Company delivers the Calculation Notice pursuant
to Section 6.2 below.

     6. Calculation Notices.

          6.1 Commencing with the quarter ending September 30, 2007, the Company shall send to the
Holder, not later than thirty (30) days after the end of each quarter, a notice showing the
calculation of the number of Shares issuable upon exercise of this Warrant upon an exercise in
connection with the redemption of one share of Series A Preferred Stock (assuming such redemption
and exercise on the last day of such quarter) and setting forth the valuation of each such Share as
provided in Section 2.3 and the Compounded Return which would be then realized by the Holder upon
such redemption and exercise, both before and after adjustment of the number of Shares issuable
hereunder as provided in Section 2 or Section 12 (such notice being a “Calculation
Notice”).

          6.2 In connection with exercise of this Warrant (and the concurrent redemption of the
associated Series A Preferred Stock), the Company shall deliver a Calculation Notice to the Holder
at least two business days prior to the date of such exercise; provided, that with respect to an
exercise and redemption in connection with a Qualified Public Offering, the Company shall deliver
such Calculation Notice not later than ten business days after the date of exercise.

          6.3 The Company shall include a Calculation Notice with any notice to the Holder of an
anticipated Change of Control pursuant to Section 5(d)(i)(d) and Section 5(d)(i)(f) of the
Certificate of Designation. Such Calculation Notice will state the Company’s assumptions as to the
expected date of the Change of Control and the expected valuation of the Company’s Common Stock to
be stated or implicit in the Change of Control.

          6.4 The Company shall include in any Calculation Notice delivered pursuant to Sections 6.1 -
6.3 above notice of any Debt Restriction (as defined in the Certificate of Designation) or
restriction of applicable Delaware law that is in effect as of the date of the Calculation Notice
or that, to the actual knowledge of the Company, will be in effect as of the date of exercise of
the Warrant (with respect to Section 6.2) or the date of the anticipated Change of Control (with
respect to Section 6.3) and that would restrict or prohibit the Company from paying cash dividends
(with respect to Section 6.1), honoring its repurchase obligations pursuant to Section 7 hereof
(with respect to Section 6.2 if such Calculation Notice is given in connection with a redemption
and exercise pursuant to Section 5(a)(ii), Section 5(b)(i) or Section 5(b)(ii) of the Certificate
of Designation), or redeeming the Series A Preferred Stock (with respect to Section 6.2 or 6.3).

 

 

     7. Right to Put Shares.

          7.1 In connection with the redemption of shares of Series A Preferred Stock pursuant to
Section 5(a)(ii) or Section 5(b)(i) or Section 5(b)(ii) of the Certificate of Designation, the
Holder shall have the right to require that the Company (subject to (a) there being no Debt
Restriction then in existence which would preclude the Company from purchasing Shares, and (b)
applicable provisions of Delaware law regarding repurchase of shares of common stock) purchase for
cash any or all of the Shares issuable upon exercise of this Warrant (as adjusted pursuant to
Section 2 and Section 12) concurrently with such redemption and any or all shares of the Company’s
Common Stock issued to the Holder in payment of Dividends (“Dividend Shares”) for a price
equal to the value of such Shares and Dividend Shares as determined under Section 2.3 hereof and
utilized in determining the realized Compounded Return under Section 2.1 and Section 2.2 hereof.
If the Holder does not have such right because a Debt Restriction then exists which would preclude
the Company from purchasing Shares or due to applicable provisions of Delaware law regarding
repurchase of shares of common stock, then the Company shall not have the right to redeem shares of
Series A Preferred Stock as provided in Section 5(a)(ii), Section 5(b)(i) or Section 5(b)(ii) of
the Certificate of Designation until such time as such Debt Restriction no longer exists or no
longer precludes the Company from purchasing Shares and applicable provisions of Delaware law
regarding repurchase of shares of common stock do not preclude the Company from repurchasing shares
of its common stock.

          7.2 Such right may be exercised by Holder duly executing and delivering the Notice of Exercise
of Put Right to the Company (i) concurrently with the exercise of this Warrant and the redemption
of shares of Series A Preferred Stock pursuant to Section 5(b)(i) or Section 5(b)(ii) of the
Certificate of Designation or (ii) in connection with the exercise of this Warrant and the
redemption of shares of Series A Preferred Stock pursuant to Section 5(a)(ii) of the Certificate of
Designation, within ten days from the date that the Common Stock Valuation provided by the Company
pursuant to Section 5(f)(iii) or (iv) of the Certificate of Designation is deemed to be provided to
the Holders by virtue of Section 5(d)(i)(g) of the Certificate of Designation. If the Holder does
not so deliver the Notice of Exercise of Put Right, such right shall be deemed waived.

          7.3 If the Holder exercises such right in accordance with this Section 7, the Company shall
(i) with respect to the exercise of this Warrant in connection with a redemption pursuant to
Section 5(a)(ii) of the Certificate of Designation, on the Redemption Date, or (ii) with respect to
the exercise of this Warrant in connection with a redemption pursuant to Section 5(b)(i) or Section
5(b)(ii) of the Certificate of Designation, not later than ninety (90) days after the date of
exercise, pay the price set forth in Section 7.1 above to the Holder in immediately available funds
in lieu of delivering to the Holder a certificate for the Shares issuable upon exercise of this
Warrant as provided in Section 1.3 hereof or a certificate for the Dividend Shares.

          7.4 If the Company is subject to a Debt Restriction on the date upon which it would otherwise
purchase Shares or Dividend Shares or is subject to a provision of Delaware law precluding the
repurchase of Shares or Dividend Shares, the Company shall repurchase Shares and Dividend Shares
for cash to the extent permitted by the Debt Restriction and by Delaware law and shall purchase the
additional Shares or Dividend Shares which it is obligated to repurchase under this Section 7
promptly when such Debt Restriction no longer applies and when the Company is no longer precluded
from completing such repurchase in accordance with Delaware law. For so long as the Company is
precluded from repurchasing any Shares or Dividend Shares it is otherwise obligated to repurchase
pursuant to this Section 7, the Holder may withdraw its Notice of Exercise of Put Rights and may,
to the extent otherwise contractually and legally permissible, transfer such shares. The Holder
(but not any subsequent transferee) may subsequently renew its exercise of rights pursuant to this
Section 7 by giving the Company written notice at least 90 days in advance of such renewal.

 

 

          7.5 This Section 7 shall survive the termination of this Warrant.

     8. No Rights as Stockholders. This Warrant does not entitle the Holder to any voting
rights or other rights as a stockholder of the Company prior to the exercise hereof.
Notwithstanding anything to the contrary herein, nothing in this Warrant shall require, or be
construed to require, the Company to register the Warrant or any of the Shares under the Securities
Act or other applicable securities laws.

     9. Registry of Warrant. The Company shall maintain at the office set forth in the
Purchase Agreement a registry showing the name and address of the Holder. This Warrant may be
surrendered for transfer or exercise, in accordance with its terms, at such office or agency of the
Company, and the Company shall be entitled to rely in all respects, prior to written notice to the
contrary, upon such registry.

     10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it, and upon surrender and cancellation of this Warrant, if mutilated, the Company
will make and deliver a new Warrant of like tenor and dated as of such cancellation, in lieu of
this Warrant.

     11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a Saturday or a
Sunday or shall be a legal holiday in the State of Delaware, then such action may be taken or such
right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday.

     12. Adjustment of Exercise Price and Number of Shares. The number and kind of
securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows.

          12.1 Reclassification or Merger. In case of any reclassification or other change of
securities of the class issuable upon exercise of this Warrant (other than a change solely in par
value or from par value to no par value or vice versa or as a result of a subdivision or
combination of Shares or other securities subject to this Warrant), the Company shall duly execute
and deliver to the Holder a new Warrant as nearly equivalent as possible to this Warrant; and in
case of any merger of the Company with or into another corporation (other than a merger with
another corporation in which the Company is the surviving corporation and which does not result in
any reclassification or change of outstanding securities issuable upon exercise of this Warrant),
or in case of any sale of all or substantially all of the assets of the Company, the Company, or
such successor or purchasing entity shall (i) duly execute and deliver to the Holder a new Warrant
as nearly equivalent as possible to this Warrant or (ii) make appropriate written provisions,
without the issuance of a new Warrant, so that the Holder shall have the right to receive upon
exercise of this Warrant, at a total exercise price not to exceed that payable upon the exercise of
the unexercised portion of this Warrant, and in lieu of the Shares or other securities theretofore
issuable upon exercise of this Warrant immediately prior to such reclassification or change, the
kind and amount of shares of stock, other securities, money and property receivable upon such
reclassification, change, merger or sale by a holder of the number of Shares or other securities
then purchasable under this Warrant. Any new Warrant shall provide for adjustments that shall be
as nearly equivalent as may be practicable to the adjustments provided for in this Section 12. The
provisions of this Section 12.1 shall similarly apply to successive recapitalizations,
reclassifications, reorganizations, changes, mergers and sales.

          12.2 Split, Subdivision or Combination of Shares. If the Company, at any time after
the date hereof, shall split, subdivide or combine its outstanding Shares, the Exercise Price shall
be proportionately decreased in the case of a split or subdivision and the number of Shares
issuable

 

 

hereunder shall be proportionately increased in the case of a split or subdivision and the
Exercise Price shall be proportionately increased in the case of a combination and the number of
Shares issuable hereunder shall be proportionately decreased in the case of a combination,
effective at the close of business on the date the split, subdivision or combination becomes
effective.

          12.3 Adjustments for Dividends in Stock or Other Securities or Property. If, at any
time while this Warrant or any portion thereof remains outstanding and unexpired, the holders of
the Company’s Common Stock shall have received, or, on or after the record date fixed for the
determination of eligible stockholders, shall have become entitled to receive, without payment
therefor, shares of Common Stock, or additional stock or other securities or property (other than
cash) of the Company by way of dividend or other distribution that the Holder of this Warrant has
not received or been entitled to receive by virtue of being a holder of the shares of Series A
Preferred Stock associated with this Warrant, then and in each case, this Warrant shall represent
the right to acquire, in addition to the number of shares of the security receivable upon exercise
of this Warrant, and without payment of any additional consideration therefor, the amount of such
other or additional stock or other securities or property (other than cash) of the Company that
such holder would hold on the date of such exercise had it been the holder of record of the Shares
receivable upon exercise of this Warrant on the date hereof and had thereafter, during the period
from the date hereof to and including the date of such event, retained such shares and/or all other
or additional stock or other securities or property that would have been received by it as
aforesaid during such period, giving effect to all adjustments called for during such period by the
provisions of this Section 12.

          12.4 Exercise Price. The Exercise Price indicated in the preamble to this Warrant is
equal to the initial Redemption Price of the associated share or shares of Series A Preferred
Stock. If the Redemption Price of the share or shares of Series A Preferred Stock associated with
this Warrant is adjusted pursuant to Section 5(d)(iii) of the Certificate of Designation, the
Exercise Price of this Warrant shall be adjusted retroactively to the date of the issuance of this
Warrant to equal the Redemption Price of the associated share or shares of Series A Preferred Stock
as adjusted pursuant to Section 5(d)(iii) of the Certificate of Designation. If an Exercise Price
Deposit is made pursuant to Section 1.3 hereof and the Exercise Price of this Warrant is
subsequently subject to a downward adjustment, then upon the exercise of this Warrant (or if this
Warrant has already been exercised, as soon as practicable thereafter), the Company shall pay the
Holder an amount of cash equal to the Exercise Price Deposit less the Exercise Price, as adjusted,
as a refund of the excess amount paid by the Holder to exercise this Warrant.

          12.5 Certificate as to Adjustments. Upon the occurrence of each adjustment or
readjustment pursuant to this Section 12, the Company at its expense shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and shall furnish to each Holder of
this Warrant a certificate setting forth such adjustment or readjustment and showing in detail the
facts upon which such adjustment or readjustment is based. The Company shall, upon the written
request, at any time, of any such Holder, furnish or cause to be furnished to such Holder a like
certificate setting forth: (i) such adjustments and readjustments; (ii) the Exercise Price at the
time in effect; and (iii) the number of shares and the amount, if any, of other property that at
the time would be received upon the exercise of this Warrant.

     13. Restrictions on Transferability of Securities.

          13.1 Restrictions on Transferability. This Warrant and the Shares or other securities
issuable upon exercise of this Warrant (collectively the “Securities”) shall not be sold,
assigned, pledged or otherwise transferred, except in compliance with the registration provisions
of the Securities Act of 1933, as amended (the “Securities Act”), and applicable state blue
sky or securities laws or in reliance on an opinion of counsel, reasonably satisfactory to the
Company and its counsel, that such registration is not

 

 

required, and in compliance with the Stockholders Agreement. Each holder of Restricted
Securities (as defined below) will cause any proposed purchaser, assignee, pledgee or transferee of
Restricted Securities held by such holder to agree to take and hold such Restricted Securities
subject to the provisions and upon the conditions specified in this Section 13 and, prior to the
Termination Date, to execute a joinder to the Stockholders’ Agreement and Registration Rights
Agreement evidencing such Holder’s agreement to be bound by the terms thereof. The Company shall
not be required to (i) transfer on its books any Securities that have been sold or transferred in
contravention of the restrictions of this Warrant or (ii) treat as the owner of Securities, or
otherwise to accord any rights to, any transferee to whom Securities have been transferred in
contravention of the restrictions of this Warrant. Subject to the provisions of this Section 13,
this Warrant and the Securities are transferable, in whole or in part, at the office or agency of
the Company referred to in the Purchase Agreement, by the Holder in person or by duly authorized
attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto properly
endorsed.

     13.2 Restrictive Legend. Each certificate representing the Securities and any other
securities issued in respect of the Securities upon any stock split, stock dividend,
recapitalization, merger, consolidation or similar event, shall (unless otherwise permitted by the
provisions of Section 13.3 below) be stamped or otherwise imprinted with a legend in the following
form (in addition to any legend required under applicable state securities laws):

     THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

     Each holder of Restricted Securities and each subsequent transferee (hereinafter collectively
referred to as a “Restricted Holder”) consents to the Company making a notation on its
records and giving instructions to any transfer agent of the Securities in order to implement the
restrictions on transfer established in this Section 13. Securities represented by a certificate
bearing the legend set forth in this Section 13.2 are referred to herein as “Restricted
Securities.”

          13.3 Removal of Restrictions on Transfer of Securities. Any legend referred to in
Section 13.2 hereof stamped on a certificate evidencing the Securities, and the stock transfer
instructions and record notations with respect to the Securities shall be removed, and the Company
shall issue a certificate without such legend to the Restricted Holder of the Securities, if the
offer and sale of such Securities is registered under the Securities Act, or if such Restricted
Holder provides the Company with an opinion of counsel (which may be counsel for the Company)
reasonably satisfactory to the Company to the effect that a public sale or transfer of such
security may be made without registration under the Securities Act and such Restricted Holder
provides the Company with reasonable assurances and customary supporting documentation, including,
without limitation, representation letters from the Holder or the Holder’s broker or agent, that
such security can be sold pursuant to paragraph (k) of Rule 144 (or any successor provision) under
the Securities Act.

     14. Miscellaneous.

          14.1 Issue Date. The provisions of this Warrant shall be construed and shall be given
effect in all respects as if it had been issued and delivered by the Company on the date hereof.

 

 

          14.2 Governing Law. This Warrant shall be governed in all respects by the laws of the
State of Delaware without regard to choice of laws or conflict of laws provisions thereof.
Notwithstanding any other provisions of this Warrant, the issuance of shares of the Company’s
Common Stock upon exercise of this Warrant shall in all instances be subject to Delaware corporate
law governing distributions upon equity securities.

          14.3 Waivers and Amendments. With the written consent of the Company and the holders
of a majority of the Shares issuable upon exercise of the then-outstanding Warrants, the
obligations of the Company and the rights of the Holder may be waived (either generally or in a
particular instance, either retroactively or prospectively and either for a specified period of
time or indefinitely), and with the same consent the Company and the Holder may enter into a
supplementary agreement for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Warrant.

          14.4 Notices. All notices and other communications required or permitted to be given
under this Warrant shall be delivered in the manner set forth in the Purchase Agreement.

          14.5 Binding Effect on Successors. This Warrant shall be binding upon any entity
succeeding the Company by merger or consolidation. All of the covenants and agreements of the
Company shall inure to the benefit of the successors and permitted assigns of the Holder.

 

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized.

	 	 	 	 	 	 	 
	Dated:	 	TRIDENT RESOURCES CORP.	 	 
	 
	 
	 	By	 	 	 	 
	 

	 	 
	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

Acknowledged and agreed:

	 	 	 	 	 
	 

	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

 

NOTICE OF EXERCISE

     To: TRIDENT RESOURCES CORP.

     The undersigned hereby elects to purchase                     Shares (as defined in the attached Common Stock
Purchase Warrant (the “Warrant”)) pursuant to Section 1 of the Warrant and [herewith makes
payment of $                    1 [and/or hereby agrees that the obligation of the undersigned to
pay the Exercise Price may be offset and satisfied in full against the obligation of Trident
Resources Corp. (the “Company”) to pay the undersigned the Redemption Price of the same
number of shares of the Company’s Series A Cumulative Preferred Stock (the “Series A Preferred
Stock”)].2

     [The undersigned hereby represents and warrants to the Company that the undersigned is, and
will be at the time of the redemption of the Series A Preferred Stock to be redeemed in connection
with the exercise of the Warrant, a resident of Canada for purposes of the Income Tax Act (Canada)
(the “Tax Act”) and acknowledges that it is aware that the Company is relying on such
representation and warranty for the purposes of Section 116 of the Tax Act.]3

	 	 	 	 	 
	 

	 	 

(Signature)
	 	 

 

			
	1	 	Delete if offset of Redemption Price is used to pay the
Exercise Price.
	 
	2	 	Include if offset of Redemption Price us used to pay
the Exercise Price.
	 
	3	 	Delete if holder is not a resident of Canada for
purposes of the Tax Act.

 

 

NOTICE OF OPTION EXERCISE

     To: TRIDENT RESOURCES CORP.

     The undersigned hereby elects, in accordance with Section 5 of the attached Common Stock
Purchase Warrant (the “Warrant”)), to purchase                                shares of the common stock of Trident
Resources Corp. (the “Company”), which shares are “Excess Shares” as defined in
Section 5 of the Warrant. Concurrently with or prior to the delivery of this notice, the
undersigned has delivered to the Company $                    , which is equal to the value of the Excess Shares, as
determined pursuant to Section 2.3 of the Warrant.

	 	 	 	 	 
	 

	 	(Name)	 	 
	 
	 	 	 	 
	 

	 	(Address)	 	 
	 
	 	 	 	 
	 

	 	(Date)	 	 
	 
	 	 	 	 
	 

	 	 

(Signature)
	 	 

 

 

NOTICE OF EXERCISE OF PUT RIGHT

     To: TRIDENT RESOURCES CORP.

     With respect to the exercise of the attached Common Stock Purchase Warrant (the
“Warrant”) in connection with a redemption of shares of the Series A Preferred Stock
pursuant to Section 5(a)(ii), Section 5(b)(i) or Section 5(b)(ii) of the Certificate of
Designation, the undersigned hereby exercises its right as set forth in Section 7 of the Warrant to
require that Trident Resources Corp. (the “Company”) repurchase           (      ) shares of the Company’s
Common Stock issuable upon exercise of the Warrant and           (      ) shares of Common Stock to be received by
the undersigned in payment of Regular Dividends or Additional Dividends (each as defined in the
Certificate of Designation) in respect of the Series A Preferred Stock.

     With respect to shares of Common Stock as to which the Holder’s right under the immediately
preceding paragraph is not exercised, please issue a certificate or certificates representing said
shares in the name of the undersigned or in such other name as is specified below:

	 	 	 	 	 
	 

	 	(Name)	 	 
	 
	 	 	 	 
	 

	 	(Address)	 	 
	 
	 	 	 	 
	 

	 	(Date)	 	 
	 
	 	 	 	 
	 

	 	 

(Signature)
	 	 

 

 

ASSIGNMENT FORM

(To assign the foregoing Warrant, execute

this form and supply required information.

Do not use this form to purchase Shares.)

     FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned
to

	 	 	 
	 

	 	(Please Print)
	 
	 	 
	  whose address is
	 	 
	 
	 	 
	 

	 	(Please Print)

	 	 	 	 	 
	 

	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Dated:

	 	________________, 20___________________
	 

	 	 	 
	 
	 	 	 	 
	Holder’s Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Holder’s Address:

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