Document:

exv4w6

 

Exhibit 4.6

Unless permitted under securities legislation, the holder of this security must not trade the
security before •, 2007

Without prior written approval of the TSX Venture Exchange and compliance with all applicable
securities legislation, the securities represented by this certificate and the common shares for
which this security is exercisable may not be sold, transferred, hypothecated or otherwise traded
on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the
benefit of a Canadian resident until •, 2007

The common shares for which this security is exercisable have not been and will not be registered
under the United States Securities Act of 1933, as amended (the “1933 Act”) or any applicable state
securities laws. This security may not be exercised within the United States or on behalf of any
U.S. Person (as defined in regulation s under the 1933 Act) unless registered under the 1933 Act
and any such applicable state securities laws or unless an exemption from such registration is
available.

THE WARRANTS REPRESENTED BY THIS CERTIFICATE WILL BE VOID AND OF

NO VALUE IF NOT EXERCISED PRIOR TO 4:00 P.M. (CALGARY TIME) ON •, 2009.

WARRANT CERTIFICATE

AUSAM ENERGY CORPORATION

(Existing under the laws of the Province of Alberta)

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	WARRANT CERTIFICATE NO.                      
	 	 	 	    
        
         WARRANTS entitling the holder
to acquire, subject to adjustment,  one (1) Common Share for each whole Warrant represented hereby.
	 
	 	 
	 	 	 	 	 

THIS IS TO CERTIFY THAT:

[NAME AND ADDRESS OF HOLDER]

(the “Warrantholder”) is entitled to acquire, for each Warrant represented hereby, in the manner
and subject to the restrictions and adjustments set forth in the “Terms and Conditions of Warrants
of Ausam Energy Corporation” appended as a Schedule hereto and forming a part hereof, at any time
and from time to time until •, 2009, one (1) fully paid and non-assessable common share
(“Common Share”) in the capital of Ausam Energy Corporation (the “Corporation”), upon payment to
the Corporation of CDN$0.65 per Common Share, subject to adjustment in certain events.

The Warrants represented by this certificate may only be exercised at the principal office of the
Corporation 1430, 1122 — 4th Street S.W. Calgary, Alberta T2R 1M1 upon surrender of this
certificate with the Subscription Form on the reverse side hereof duly completed and executed, and
cash or a certified cheque or bank draft payable to or to the order of the Corporation, at par in
Calgary, Alberta in immediately available funds, for the full purchase price of the Common Shares
so subscribed for.

The Warrants represented by this certificate are subject to the “Terms and Conditions of Warrants
of Ausam Energy Corporation” appended as a Schedule hereto.

IN WITNESS WHEREOF, the Corporation has caused this certificate to be executed by a duly authorized
director or officer.

DATED for reference this • day of •, 2007.

	 	 	 	 	 	 	 
	 	 	AUSAM ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	Per:	 	 	 	 
	 

	 	 	 	 

Mark Avery

President and CEO
	 	 

IMPORTANT: SEE “TERMS AND CONDITIONS OF WARRANTS OF

AUSAM ENERGY CORPORATION” ATTACHED AS A SCHEDULE HERETO

 

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(reverse side of Warrant Certificate)

SUBSCRIPTION FORM

	 	 	 	 	 	 	 	 	 
	TO:     AUSAM ENERGY CORPORATION
	 
	 	 	 	 	 	 	 	 
	The undersigned holder of the within Warrants hereby irrevocably subscribes for                      Common Shares (or such adjusted
number of Common Shares or other securities to which such subscription entitles the undersigned in lieu thereof) in
accordance with and subject to the provisions of this Warrant Certificate at the subscription price of CDN$0.65 per common
share for each one (1) Warrant exercised hereby, and encloses herewith cash or a certified cheque or bank draft payable to
or to the order of AUSAM ENERGY CORPORATION (or other corporation that assumes the Warrant obligations pursuant to the terms
hereof under Section 4.4) for the full subscription price for the Common Shares so subscribed for.
	 
	 	 	 	 	 	 	 	 
	The Common Shares hereby subscribed for are to be issued as follows:
	 
	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address in full:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Social Insurance Number:
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	Note: If further nominees are intended, please attach (and initial) a schedule providing these particulars.
	 
	 	 	 	 	 	 	 	 
	DATED this            day of                     , 200     .
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	   	 	 
	Signature Guaranteed	 	 	 	Signature of Warrantholder (to be the same as the name
that appears on the face of this Warrant Certificate)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name of Warrantholder (please print)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Address of Warrantholder (please print)	 	 

TRANSFER FORM

	 	 	 	 	 	 	 	 	 
	FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to                      of
                     (print name and address of assignee),                      Warrants of AUSAM ENERGY CORPORATION registered in
the name of the undersigned represented by the within Warrant Certificate.

	 
	DATED this _____ day of _______________, 200__.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature Guaranteed	 	 	 	Signature of Warrantholder (to be the same as the name
that appears on the face of this Warrant Certificate)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name of Warrantholder (please print)	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Address of Warrantholder (please print)	 	 

Instructions:

	 	1.	 	If the Subscription Form indicates that Common Shares are to be issued to a person or persons
other than the registered holder of the Warrant Certificate, the signature of such
Warrantholder on the Subscription Form must be guaranteed by an authorized officer of
a chartered bank, trust company or an investment dealer who is a member of a recognized stock
exchange, and the Warrantholder must pay any applicable transfer taxes or fees.
	 
	 	2.	 	If the Subscription Form or Transfer Form is signed by a trustee, exercise, administrator,
curator, guardian, attorney, officer of a corporation or any person acting in a fiduciary or
representative capacity, the Warrant Certificate must be accompanied by evidence of authority
to sign satisfactory to the Corporation.
	 
	 	3.	 	Warrants shall only be transferable in accordance with applicable securities laws and the
policies of the TSX Venture Exchange.

 

S-2

SCHEDULE TO WARRANT CERTIFICATE

TERMS AND CONDITIONS OF WARRANTS

OF AUSAM ENERGY CORPORATION

Terms and Conditions attached to the Warrants issued by Ausam Energy Corporation and dated for
reference the • day of •, 2007.

ARTICLE 1

INTERPRETATION

	1.1	 	Definitions

In these Terms and Conditions, unless there is something in the subject matter or context inconsistent therewith:

	 	(a)	 	“Board of Directors” means the board of directors of the Corporation;
	 
	 	(b)	 	“Business Day” means a day other than a Saturday, Sunday or a statutory holiday
in the Province of Alberta;
	 
	 	(c)	 	“Common Shares” means the common shares in the capital of the Corporation;
	 
	 	(d)	 	“Corporation” means Ausam Energy Corporation and its successors and assigns;
	 
	 	(e)	 	“Exercise Price” means the price of $0.65 per Common Share, expressed in lawful
money of Canada, or such lesser price as may be determined in accordance with Section
5.2, subject to adjustment in accordance with Article 4 hereof;
	 
	 	(f)	 	“Expiry Time” means 4:00 p.m. (Calgary time) on • , 2009, or such other
time as may be determined in accordance with Section 5.2, subject to adjustment in
accordance with Article 4 hereof;
	 
	 	(g)	 	“herein”, “hereby” and similar expressions refer to these Terms and Conditions,
as the same may be amended or modified from time to time; and the expression “Article”,
“Section” and “subsection” followed by a number refer to the specified Article, Section
or subsection of these Terms and Conditions;
	 
	 	(h)	 	“person” includes an individual, corporation, partnership, trustee or any
unincorporated organization and words importing persons include individuals,
corporations, partnerships, trustees and unincorporated organizations;
	 
	 	(i)	 	“Purchase Price” shall mean, for any exercise of Warrants, the aggregate
consideration payable to the Corporation by the Warrantholder pursuant to Section 2.2
hereof, in an amount equal to the product of the Exercise Price applicable as at the
date of exercise multiplied by the number of Warrants so exercised at such time;
	 
	 	(j)	 	“Warrantholder” means the registered holder of the Warrants;
	 
	 	(k)	 	“Warrants” means the warrants to acquire Common Shares evidenced by the Warrant
Certificate;
	 
	 	(l)	 	Warrant Certificate” means the certificate to which these Terms and Conditions
are attached; and

Words importing the singular number include the plural and vice versa and words importing the
masculine gender include the feminine and neuter genders.

 

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	1.2	 	Interpretation Not Affected by Headings

The division of these Terms and Conditions into Articles, Sections and subsections, and the
insertion of headings, are for convenience of reference only and shall not affect the construction
or interpretation hereof.

	1.3	 	Applicable Law

These Terms and Conditions shall be construed in accordance with and the rights and obligations of
the Warrantholder and the Corporation hereunder shall be governed by, the laws of the Province of
Alberta and the federal laws of Canada applicable therein, without regard to principles of
conflicts of law. The Warrantholder attorns to the non-exclusive jurisdiction of the courts of the
Province of Alberta in respect of all matters and disputes arising hereunder.

ARTICLE 2

VESTING AND EXERCISE OF WARRANTS

	2.1	 	Vesting and Expiry

The
Warrants shall vest on •, 2007. All Warrants shall expire at
4:00 p.m. (Calgary time) on •, 2009.

	2.2	 	Method of Exercise

The right to purchase Common Shares hereunder may be exercised, subject to vesting as set out in
Section 2.1 and prior to the Expiry Time, by the Warrantholder delivering to the Corporation at its
principal office: (i) the Warrant Certificate with the subscription form printed on the reverse
side thereof duly completed and executed; and (ii) cash or a certified cheque or bank draft payable
to or to the order of the Corporation, at par in Calgary, Alberta in immediately available funds,
for the full amount of the Purchase Price, in lawful money of Canada. The Warrant Certificate and
payment shall be deemed to be delivered only upon actual receipt of same by the Corporation.

	2.3	 	Effect of Exercise

Upon delivery and payment as set forth in Section 2.2 above, the Common Shares so subscribed for
shall be issued as fully paid and non-assessable shares in the capital of the Corporation and the
Warrantholder will become the holder of record of such Common Shares effective as of the date of
such delivery and payment, and within five (5) Business Days thereafter the Corporation will cause
a certificate for the Common Shares so purchased to be issued and delivered to the Warrantholder,
at the address provided by the Warrantholder in the Subscription Form.

	2.4	 	Partial Exercise

The Warrantholder may subscribe for and purchase a number of Common Shares less than the total
number of Common Shares that the Warrantholder is entitled to purchase hereunder, in which event
the Corporation shall cause a certificate representing the balance of the Warrants not exercised by
the Warrantholder to be issued and delivered to the Warrantholder at the address set forth in the
delivery instructions provided by the Warrantholder in the Subscription Form printed on the reverse
side of the Warrant Certificate; provided, however, that no fewer than one hundred (100) Warrants
may be exercised by the Warrantholder at any one time, unless at the time of exercise the number of
Warrants held by the Warrantholder is less than one hundred (100), in which case the Warrantholder
may exercise such lesser number of Warrants.

	2.5	 	Expiration

At the Expiry Time, all rights hereunder shall wholly cease and terminate and the Warrants shall be
void and of no value or effect whatsoever.

	2.6	 	Fractional Interests

The Corporation shall not be required to issue fractional Common Shares or script representing
fractional shares on the exercise of any Warrants nor shall any compensation be made for such
fractional shares, if any. If more than one Warrant

 

S-4

shall be presented by the Warrantholder for exercise at the same time, the number of full Common
Shares issuable upon the exercise thereof will be computed on the basis of the aggregate number of
Common Shares purchasable on exercise of the Warrants so presented.

	2.7	 	Successors

This Warrant Certificate will enure to the benefit of and be binding upon the Warrantholder and the
Corporation and their respective successors and assigns.

ARTICLE 3

GENERAL

	3.1	 	Reservation of Sufficient Common Shares

For so long as the Warrants remain outstanding, the Corporation shall reserve and keep available
for issue upon the exercise of the Warrants such number of authorized but unissued Common Shares or
other shares in the capital of the Corporation as will be required to satisfy in full the
acquisition rights of the Warrantholder pursuant to the Warrants.

	3.2	 	Covenants and Representations of the Corporation

The Corporation hereby represents and warrants that it is authorized to create and issue the
Warrants and covenants that it will cause the Common Shares from time to time subscribed for and
purchased in the manner provided in this Warrant Certificate and the certificate representing such
Common Shares to be issued.

All Common Shares that are issued upon the exercise of the right of purchase provided in this
Warrant Certificate, upon payment of the Purchase Price, shall be and be deemed to be fully paid
and non-assessable Common Shares and free from all taxes, liens and charges with respect to the
issue thereof.

The Corporation hereby represents and warrants that this Warrant Certificate is a valid and
enforceable obligation of the Corporation, enforceable in accordance with the provisions of this
Warrant Certificate.

	3.3	 	Additional Securities

Nothing contained herein shall be construed as preventing the Corporation from making any
distribution of or otherwise issuing to any person, at any time and from time to time, additional
Common Shares or securities convertible into Common Shares for such consideration and on such terms
as may be approved by the Board of Directors in its sole discretion.

	3.4	 	Lost, Stolen, Destroyed or Mutilated Warrant Certificates

Upon receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or
mutilation of any Warrant Certificate and, in the case of loss, theft or destruction, upon receipt
of indemnity or security in an amount and form satisfactory to the Corporation, or, in the case of
mutilation, upon surrender and cancellation of such Warrant Certificate, the Corporation will make
and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant Certificate, a new
Warrant Certificate (containing the same terms and conditions as this Warrant Certificate) and
representing the same number of Warrants. The Warrantholder shall pay the reasonable charges of
the Corporation in connection with any such replacement.

	3.5	 	Warrantholder Not a Shareholder

The Warrants represented hereby shall not constitute the Warrantholder a shareholder of the
Corporation, nor entitle the Warrantholder to any right or interest (including, without limitation,
any voting rights or rights to receive dividends or other distributions) as a shareholder of the
Corporation. For greater certainty, Warrants represented hereby shall not entitle the
Warrantholder to any voting rights whatsoever in the affairs of the Corporation except as required
by law.

 

S-5

	3.6	 	Notice to Regulatory Authorities

The Corporation will give written notice of the issuance of any Common Shares pursuant to the
exercise of Warrants, in such detail as may be required, to each stock exchange, securities
commission or similar regulatory authority in Canada having jurisdiction in respect of such
issuance.

	3.7	 	Legends

If, at the time of the exercise of the Warrants, the Common Shares acquired thereby are subject to
trading restrictions under applicable securities legislation or the policies of the TSX Venture
Exchange, the Corporation may, on the advice of counsel, endorse the certificates representing such
Common Shares to such effect.

	3.8	 	Transfer Taxes

The Corporation shall pay any and all transfer taxes (if any) that may be payable in respect of the
issuance or delivery of Common Shares upon the exercise of the Warrants; provided, however, that
the Corporation shall not be required to pay any such tax or taxes that may be payable in respect
of the issuance or delivery of any certificates for Common Shares issued upon the exercise of the
Warrants in the name of a person or persons other than the Warrantholder.

ARTICLE 4

ADJUSTMENTS

	4.1	 	Adjustment of Subscription Rights

The number of Common Shares that a Warrantholder may purchase upon the proper exercise of a
Warrant, or the property that a Warrantholder may receive in lieu thereof, shall be subject to
adjustment from time to time as set forth in this Article 4 with respect to any fact or event
described herein occurring after the date hereof but prior to the Expiry Time. Notwithstanding
anything contained in this Article 4, any adjustment made pursuant to any provision of this Article
4 shall be made without duplication of an adjustment otherwise required by and made pursuant to
another provision of this Article 4 on account of the same facts or events.

	4.2	 	Share Dividends, Subdivisions or Consolidations

If, at any time after the date hereof but prior to the Expiry Time, the Corporation shall:

	(a)	 	subdivide the outstanding Common Shares into a larger number of Common Shares;
	 
	(b)	 	combine or consolidate the outstanding Common Shares into a smaller number of Common Shares;
or
	 
	(c)	 	make any distribution payable in Common Shares or other securities to the holders of all or
substantially all of the outstanding Common Shares including by way of stock dividend,

(any of such events referred to in paragraphs (a), (b) or (c) above being an “Adjustment Event”),
then the number of Common Shares purchasable upon the exercise of any Warrants shall be adjusted so
that the Warrantholder shall thereafter be entitled to receive upon such exercise, and shall be
required to accept as consideration for the Purchase Price paid to the Corporation in connection
with such exercise, in lieu of the number of Common Shares (the “Pre-Adjustment Shares”) that such
Warrantholder would have received had he exercised such Warrants prior to the effective date of the
Adjustment Event, the number of Common Shares that such Warrantholder would have been entitled to
receive as a result of such Adjustment Event if, on the effective date thereof, he had been the
registered holder of the Pre-Adjustment Shares. Any adjustment made pursuant to this subsection
shall become effective immediately after the effective date of the Adjustment Event and shall be
retroactive to the record date, if any, on which the holders of the Common Shares are determined
for the purposes of the Adjustment Event.

 

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	4.3	 	Minimum Adjustment

No adjustment in the number of Common Shares purchasable upon the exercise of a Warrant shall be
required under Section 4.1 above unless such adjustment would require an increase or decrease of at
least two percent (2%) in the number of Common Shares purchasable upon the exercise of each
Warrant; provided, however, that any adjustments which by reason of this Section 4.3 are not
required to be made shall be carried forward and taken into account in any subsequent adjustment.
All calculations made in this regard shall be made to the nearest one-hundredth of a Common Share.

	4.4	 	Reorganization

If, at any time after the date hereof but prior to the Expiry Time, the Corporation shall:

	(a)	 	reclassify, change or reorganize the Common Shares then outstanding into other shares or
securities of the Corporation or any affiliate or associate of the Corporation; or
	 
	(b)	 	merge, amalgamate or consolidate into another person (including by way of plan of
arrangement);

(any of such events referred to in paragraphs (a) or (b) above being a “Reorganization”), and
pursuant to the terms of such Reorganization, securities of the Corporation, an affiliate or
associate of the Corporation or of a successor person are to be received by or distributed to the
holders of Common Shares, then the Corporation shall use its commercially reasonable efforts to
provide that a Warrantholder shall thereafter have the right to receive, upon proper exercise of
any Warrants, and shall be required to accept as consideration for the Purchase Price paid to the
Corporation in connection with such exercise, in lieu of the number of Common Shares (the
“Pre-Reorganization Shares”) that such Warrantholder would have received had he exercised such
Warrants prior to the effective date of the Reorganization, the kind and number of such other
securities of the Corporation, or of any affiliate or associate of the Corporation or of any
successor person, as the case may be, that such Warrantholder would have been entitled to receive
as a result of such Reorganization if, on the effective date thereof, he had been the registered
holder of the Pre-Reorganization Shares. Any adjustment made pursuant to this subsection shall
become effective immediately after the effective date of the Reorganization.

If determined appropriate by the Board of Directors to give effect to or to evidence the provisions
of this section, the Corporation, its affiliates, associates, successors or such purchasing body
corporate, partnership, trust or other entity, as the case may be, shall prior to or
contemporaneously with any such Reorganization enter into an agreement or new Warrant certificate
which shall provide, to the extent possible, for the application of the provisions set forth in
this Warrant with respect to the rights and interests thereafter of the Warrantholder to the end
that the provisions set forth in this Warrant shall thereafter correspondingly be made applicable,
as nearly as may reasonably be, with respect to any shares, other securities or property to which a
Warrantholder is entitled on the exercise of its acquisition rights thereafter and upon entering
into such new Warrant Certificate or agreement, the Corporation shall cease to have any obligations
(including the obligation to issue any Common Shares) hereunder and the holder shall cease to have
any rights hereunder. Any Warrant Certificate or agreement entered into between the Corporation,
any affiliate, associate or successor of the Corporation or such purchasing body corporate,
partnership, trust or other entity shall provide for adjustments which shall be as nearly
equivalent as may be practicable to the adjustments provided in this Article 4 and which shall
apply to successive Reorganizations.

	4.5	 	Other Actions Affecting Common Shares

If at any time after the date hereof the Corporation shall take any action affecting its Common
Shares, and in the opinion of the Board of Directors, acting reasonably, the adjustment provisions
of this Article 4 are not strictly applicable or, if strictly applicable would not fairly protect
the rights of a Warrantholder or the Corporation in accordance with the intent and purposes hereof,
the provisions of this Article 4 shall be adjusted in such manner, if any, and at such time, as the
Board of Directors in its discretion may reasonably determine to be equitable to the Warrantholder
and the Corporation in such circumstances. Failure of the Board of Directors to make an adjustment
in accordance with this Section 4.5 shall be conclusive evidence that the Board of Directors have
determined that it is equitable to make no adjustment in the circumstances. In the event that any
such adjustment is made, the Corporation shall deliver a written notice to the Warrantholder in
accordance with Section 4.10.

 

S-7

	4.6	 	Exception

Notwithstanding anything contained herein, no adjustment in the number of Common Shares purchasable
upon the exercise of a Warrant or the Exercise Price thereof shall be made in respect of any event
or circumstance described in this Article 4 if the Warrantholder is entitled to participate in such
event on the same terms, mutatis mutandis, as if the Warrantholder had exercised his Warrants on or
before the effective date or record date of such event or circumstance.

	4.7	 	Abandonment after Record Date

If the Corporation sets a record date as at which the holders of the Common Shares are to be
determined for the purposes of an Adjustment Event, a Reorganization Event or any other action or
event in respect of which an adjustment in the number of Common Shares purchasable upon the
exercise of a Warrant or the Exercise Price thereof shall be made under this Article 4, but legally
abandons such action or event prior to completion thereof, then no adjustment in the number of
Common Shares purchasable upon the exercise of a Warrant or the Exercise Price thereof shall be
required by reason of the setting of such record date.

	4.8	 	No Adjustments for Other Transactions or Events

Notwithstanding anything contained herein, neither the number of Common Shares purchasable upon the
exercise of a Warrant nor the Exercise Price thereof shall be adjusted or be subject to adjustment
as a result of:

	(a)	 	the granting by the Corporation of options or other rights under any stock option plan, stock
purchase plan, phantom stock plan, stock appreciation rights plan, or other deferred, share or
incentive compensation plan to officers, directors, employees or consultants of the
Corporation or its affiliates;
	 
	(b)	 	the issue by the Corporation of any Common Shares or other securities of the Corporation for
valuable consideration to any persons other than as specifically provided for in this Article
4 (including without limitation the issue of Common Shares upon the exercise or conversion of
any securities of the Corporation outstanding as at the date hereof that are exercisable or
convertible into Common Shares); or
	 
	(c)	 	the declaration or payment of any dividends on the Common Shares other than as specifically
provided for in this Article 4.

	4.9	 	Proceedings Prior to any Action Requiring Adjustment

As a condition precedent to the taking of any action that would require an adjustment pursuant to
this Article 4, the Corporation shall take all such action as may, in the opinion of the
Corporation and its legal counsel, be necessary or advisable in order that the Corporation may
validly and legally issue as fully paid and non-assessable all Common Shares or other securities of
the Corporation that the Warrantholder is entitled to receive upon the full exercise of his
Warrants in accordance with the provisions hereof.

	4.10	 	Notice of Adjustment

	(a)	 	At least fifteen (15) days prior to the effective date or record date, as the case may be, of
any event that requires or might require an adjustment pursuant to this Article 4, the
Corporation shall give written notice to the Warrantholder of the particulars of such event
and, if determinable, the required adjustment.
	 
	(b)	 	In the event that any adjustment for which the notice of adjustment referred to in paragraph
(a) above has been given is not then determinable, the Corporation will give written notice to
the Warrantholder of the required adjustment promptly after such adjustment is determinable.
	 
	(c)	 	Unless otherwise provided herein, any notice to the Warrantholders under the provisions of
the Warrants shall be valid and effective if delivered or if sent by facsimile or letter or
circular through the ordinary post addressed to such holders at their addresses appearing on
their respective subscriptions for the Warrants and shall be deemed to have been effectively
given on the date of delivery or, if mailed, five Business Days following actual posting of
the notice, or if telecopied, the next Business Day after transmission provided that
transmission has been completely and accurately transmitted.

 

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	(d)	 	If, by reason of a strike, lockout or other work stoppage, actual or threatened, involving
postal employees, any notice to be given to the Warrantholders hereunder could reasonably be
considered unlikely to reach its destination, such notice shall be valid and effective only if
it is delivered or sent by facsimile at the appropriate address or number referred to in
subsection 4.10(c).

	4.11	 	Resolution of Disputes

If a dispute arises at any time with respect to any adjustment of the Exercise Price or the number
of Common Shares purchasable pursuant to this Warrant Certificate, such dispute shall be
conclusively determined by the auditors of the Corporation or if they are unable or unwilling to
act, by such other firm of independent chartered accountants as may be selected by the Board of
Directors, acting reasonably.

	4.12	 	Exchange Approval

Adjustments to the Exercise Price or the number of Common Shares purchasable pursuant to this
Warrant Certificate may be subject to the prior approval of the TSX Venture Exchange.

ARTICLE 5

AMENDMENTS

	5.1	 	Amendments Generally

Subject to Section 5.2, the terms of the Warrants represented by the Warrant Certificate may be
amended, and the observance of any term thereof may be waived, only by a written instrument signed
by the Corporation and the Warrantholder. Any such amendment shall be subject to receipt by the
Corporation of all required approvals (if any) from any stock exchange on which the Common Shares
are listed and all applicable securities regulatory authorities.

	5.2	 	Reduction in Exercise Price; Extension of Expiry Time

Subject to applicable securities legislation and receipt by the Corporation of all required
approvals from any stock exchange on which the Common Shares are listed and all applicable
securities regulatory authorities, the Corporation may, at its option, at any time during the term
of the Warrants, reduce the then current Exercise Price to any amount or extend the Expiry Time to
such time as the Board of Directors may consider appropriate.exv10w1

 

Exhibit 10.1

F-1

AUSAM ENERGY CORPORATION

OPTION PLAN

Dated and Effective as of June 7, 2004.

	1.	 	Purpose of the Plan

	 	(a)	 	The purpose of the Option Plan (the “Option Plan”) is to assist Ausam Energy
Corporation (the “Corporation”) in attracting, retaining and motivating directors,
officers, employees and consultants of the Corporation and of its subsidiaries and to
closely align the personal interests of such directors, officers, employees and
consultants with those of the shareholders by providing them with the opportunity,
through options, to acquire common shares (“Common Shares”) in the capital of the
Corporation.
	 
	 	(b)	 	Capitalized words and phrases used but not defined herein shall have the same
meanings herein as ascribed thereto in the Corporate Finance Manual of the Exchange
and, in particular, in policies 1.1 and 4.4 of the such Corporate Finance Manual, and
Outstanding Common Shares shall mean, at the time of any share issuance or grant of
Options, the number of Common Shares that are outstanding immediately prior to the
share issuance or grant of Options in question on a non-diluted basis, or such other
number as may be determined under applicable rules and regulations of all regulatory
authorities to which the Corporation is subject, including the Exchange.

	2.	 	Implementation

     The grant and exercise of any options under the Option Plan are subject to compliance with the
applicable requirements of the TSX Venture Exchange (the “Exchange”) and each stock exchange on
which the shares of the Corporation are or become listed and of any governmental authority or
regulatory body to which the Corporation is subject.

	3.	 	Administration

     The Option Plan shall be administered by the Board of Directors of the Corporation which
shall, without limitation, have full and final authority and discretion, subject to the express
provisions of the Plan, to interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to it and to make all other determinations deemed necessary or advisable for
the administration of the Plan. The Board of Directors may delegate any or all of its authority
with respect to the administration of the Option Plan and any or all of the rights, powers and
discretions with respect to the Option Plan granted to it under this Option Plan to the
Compensation Committee of the Board of Directors or such other committee of directors of the
Corporation as the Board of Directors may designate. Upon any such delegation the Compensation
Committee or other committee of directors, as the case may be, as well as the Board of Directors,
shall be entitled to exercise any or all of such authority, rights, powers and discretions with
respect to the Plan. When used in the context of this Option Plan “Board of Directors” shall be
deemed to include the Compensation Committee or other committee of directors acting on behalf of
the Board of Directors.

	4.	 	Number of Shares Under Plan

     A maximum number of Common Shares equal to ten percent (10%) (the “Optioned Shares”) of the
Outstanding Common Shares, from time to time, shall be reserved, set aside and made available for
issue under and in accordance with the Option Plan by resolution of the Board of Directors;
provided that, in no event shall options be granted entitling any single individual to purchase in
excess of five percent (5%) of the Outstanding Common Shares in a twelve month period. If option
rights granted to an individual under the Option Plan shall expire or terminate for any reason
without having been exercised in respect of certain

 

F-2 

Optioned Shares, such Optioned Shares may be made available for other options to be granted
under the Plan. In addition:

	 	(a)	 	The aggregate number of Common Shares reserved for issuance on exercise of
Options, within any twelve-month period, granted to any one Consultant of the
Corporation may not exceed 2% of the Outstanding Common Shares;
	 
	 	(b)	 	The aggregate number of the Common Shares reserved for issuance on exercise
of Options, in any twelve-month period, granted to an Employee conducting Investor
Relations Activities may not exceed 2% of the Outstanding Common Shares;
	 
	 	(c)	 	The maximum number of Common Shares reserved for issuance pursuant to Options
granted to Insiders at any time may not exceed 10% of number of Outstanding Common
Shares; and
	 
	 	(d)	 	The maximum number of Common Shares issuable on exercise of Options granted
to Insiders in a twelve-month period shall not exceed 10% of the number of Outstanding
Common Shares;

Provided that, for the purposes of paragraphs (c) and (d) above, an entitlement granted prior to
the grantee becoming an Insider may be excluded in determining the number of Common Shares issuable
to Insiders.

	5.	 	Eligibility

     Options may be granted under the Option Plan to such directors, officers, employees or
consultants of the Corporation, or of its subsidiaries, as the Board of Directors may from time to
time designate as participants (the “Participants”) under the Plan. Subject to the provisions of
this Plan, the total number of Optioned Shares to be made available under the Option Plan and to
each Participant, the time or times and price or prices at which options shall be granted, the
vesting dates, the time or times at which such options are exercisable, and any conditions or
restrictions on the exercise of options, shall be in the full and final discretion of the Board of
Directors. By granting Options hereunder to an Employee or Consultant the Board of Directors of the
Corporation represents on behalf of the Corporation that the Optionee is a bona fide Employee or
Consultant.

	6.	 	Terms and Conditions

     All options under the Option Plan shall be granted upon and subject to the terms and
conditions hereinafter set forth.

	(a)	 	Exercise Price

The exercise price to each Participant for each Optioned Share shall be as
determined by the Board of Directors, but shall in no event be less than the
closing market price of the Common Shares of the Corporation on the Exchange on the
trading day immediately prior to the time of the grant of the option (or, if no
trades occurred on such day, then the next previous day on which trading took
place) less the maximum discount permitted under the regulations of the Exchange or
such other price as may be agreed to by the Corporation and approved by the
Exchange. In the event that the Corporation proposes to reduce the exercise price
of Options granted to an Optionee who is an Insider (as defined in the policies of
the Exchange) of the Corporation at the time of the proposed amendment, such
amendment shall not be effective until disinterested shareholder approval has been
obtained in respect of the reduction of the exercise price if required by the rules
and policies of the Exchange then in effect.

 

F-3

	(b)	 	Option Agreement

All options granted under the Option Plan shall be evidenced by means of an
agreement between the Corporation and each Participant (the “Option Agreement”) in
a form as may be approved by the Board of Directors, such approval to be
conclusively evidenced by the execution of the Option Agreement by any two (2)
directors or officers of the Corporation other than the Participant.

	(c)	 	Length of Grant

All options granted under the Option Plan shall expire not later than the fifth
anniversary of the date such Options were granted and may be exercised by the
Participant as to such varying percentages, on a cumulative basis, during the terms
thereof as the Board of Directors shall determine.

	(d)	 	Vesting

Notwithstanding the length of grant as set forth in subparagraph 6(c) above, the
time or times at which Options are exercisable and vesting dates shall be the dates
so fixed by the Board of Directors of the Corporation, the Compensation Committee
of the Board of Directors of the Corporation or such other committee of directors
as the Board of Directors may designate at the time of the award of the Options,
subject to the provisions of subparagraph 6(j) below which provides for automatic
vesting of all Options upon the occurrence of certain specified events, but in any
event Options issued to Consultants performing Investor Relations Activities must
vest in stages over 12 months with no more than one quarter of such Options vesting
in any three month period.

	(e)	 	Assignability of Options

An option granted under the Option Plan shall not be transferable or assignable
(whether absolutely or by way of mortgage, pledge or other charge) by a Participant
other than by will or other testamentary instrument or the laws of succession and
may be exercisable during the lifetime of the Participant only by the Participant.

	(f)	 	Right to Postpone Exercise

Each Participant, upon becoming entitled to exercise an option in respect of any
Optioned Shares in accordance with the Option Agreement, shall be entitled to
exercise the option to purchase such Optioned Shares at any time prior to the
expiration or other termination of the Option Agreement or the option rights
granted thereunder in accordance with such agreement.

	(g)	 	Exercise and Payment

Any option granted under the Option Plan may be exercised by a Participant or the
legal representative of a Participant giving notice to the Corporation specifying
the number of shares in respect of which such option is being exercised,
accompanied by payment (by cash or cheque payable to the Corporation) of the entire
exercise price (determined in accordance with the Option Agreement) for the number
of shares specified in the notice. Upon any such exercise of an option by a
Participant the Corporation shall cause the transfer agent and registrar of the
Common Shares of the Corporation to promptly deliver to such Participant or the
legal representative of such Participant, as the case may be, a share certificate
in the name of such Participant or the legal representative of such Participant, as
the case may be, representing the number of shares specified in the notice.

 

F-4

	(h)	 	Rights of Participants

The Participants shall have no rights as shareholders in respect of any of the
Optioned Shares (including, without limitation, any right to receive dividends or
other distributions therefrom, voting rights, warrants or rights under any rights
offering) other than Optioned Shares in respect of which Participants have
exercised their option to purchase and which have been issued by the Corporation.

	(i)	 	Alterations in Shares

In the event of a share dividend, share split, issuance of shares or instruments
convertible into Common Shares (other than pursuant to the Plan) for less than
market value, share consolidation, share reclassification, exchange of shares,
recapitalization, amalgamation, merger, consolidation, corporate arrangement,
reorganization, liquidation or the like of or by the Corporation, the Board of
Directors may make such adjustment, if any, of the number of Optioned Shares, or of
the exercise price, or both, as it shall deem appropriate to give proper effect to
such event, including to prevent, to the extent possible, substantial dilution or
enlargement of rights granted to Participants under the Plan. In any such event,
the maximum number of shares available under the Option Plan may be appropriately
adjusted by the Board of Directors. If because of a proposed merger, amalgamation
or other corporate arrangement or reorganization, the exchange or replacement of
shares in the Corporation by those in another company is imminent, the Board of
Directors may, in a fair and equitable manner, determine the manner in which all
unexercised option rights granted under the Option Plan shall be treated including,
for example, requiring the acceleration of the time for the exercise of such rights
by the Participants and of the time for the fulfillment of any conditions or
restrictions on such exercise. All determinations of the Board of Directors under
this paragraph 6(i) shall be full and final.

	(j)	 	Time of Exercise and Change of Control

All Options will be exercisable in whole on an earlier date upon the occurrence of
a proposal by the Corporation or any other person or corporation to implement a
transaction that would, if implemented, result in the following:

	 	(i)	 	The acquisition by any person or corporation, or any persons
or corporations acting jointly or in concert (as determined by the Securities
Act (Alberta)), whether directly or indirectly, of voting securities of the
Corporation which, together with all other voting securities of the
Corporation held by such persons or corporations, constitutes, in the
aggregate, more than 40% of all outstanding voting securities of the
Corporation;
	 
	 	(ii)	 	an amalgamation, arrangement or other form of business
combination of the Corporation with another corporation which results in the
holders of voting securities of that other corporation holding, in the
aggregate, more than 40% of all outstanding voting securities of the
corporation resulting from the business combination; and
	 
	 	(iii)	 	the sale, lease or exchange of all or substantially all of
the property of the Corporation, other than in the ordinary course of business
of the Corporation or to a subsidiary, to another person or corporation.

 

F-5

	7.	 	Expiry of Options
	 
	(a)	 	Normal Expiry

Subject to subparagraphs 7(b), (c), (d) and (e), Options granted under the Option
Plan shall expire on the date provided for in the respective Option Agreement or on
such later date as may be permitted by the Board of Directors, which shall be no
later than the fifth anniversary of the date on which any such Option is granted.

	(b)	 	Retirement or Disability

Subject to subparagraph 7(c), in the event of the termination of employment or of a
consulting agreement of a Participant with the Corporation or any of its
subsidiaries due to normal retirement in accordance with the policies of the
Corporation or the respective subsidiary, as the case may be, or due to permanent
disability of the Participant (as determined by the Board of Directors), the
Participant may exercise such part of the Option as is exercisable immediately
prior to the time of such termination within a period of 30 days following such
termination in the case of a Participant who is engaged in Investor Relations
Activities and ceases to be employed to provide Investor Relations Activities and
within a period of 90 days following such termination in every other case but in no
event later than the normal expiry date of the Option and any such Option not fully
exercised at the end of such period shall then terminate.

	(c)	 	Death of Participant

In the event of the death of any Participant prior to the expiry of outstanding
Options granted to such Participant, the executors or personal representatives of
the Participant shall have the right to exercise any such Option within 180 days of
the Participant’s death, but in no event later than the normal expiry date of the
Option and for not more than the number of Options for which the Participant could
have exercised any such Option immediately prior to the Participant’s death, and
any such Option not fully exercised at the end of such period shall then terminate.

	(d)	 	Resignation or Termination not for Cause

Subject to subparagraph 7(e), in the event of the resignation of a Participant
from, the termination of employment of a Participant with, or the removal or
resignation of a Participant who is a director, officer, employee or consultant of
the Corporation or any of its subsidiaries prior to the expiry of all outstanding
Options granted to such Participant, the Participant shall have the right to
exercise any such Options within a period of 30 days following the effective date
of such resignation in the case of a Participant who is engaged in Investor
Relations Activities and ceases to be employed to provide Investor Relations
Activities and within a period of 90 days following the effective date of such
resignation in every other case but in no event later than the normal expiry date
of the Options, but for not more than the number of Options for which the
Participant could have exercised any such Option immediately prior to such
resignation or termination and any such Option not fully exercised at the end of
such period shall then terminate.

	(e)	 	Termination for Cause

If a Participant is dismissed or terminated as a director, officer, employee or
consultant (as the case may be by the Corporation or by one of its subsidiaries)
for cause, all unexercised Options of that Participant under the Option Plan shall
immediately terminate forthwith without further notice to the Participant,
notwithstanding the original

 

F-6

term or vesting of the Options granted to such Participant under the Option Plan or
Option Agreement.

	8.	 	Amendment and Discontinuance of Plan

          The Board of Directors may from time to time amend or revise the terms of the Option Plan or
may discontinue the Option Plan at any time, provided that no such action may in any manner
adversely affect the rights under any options earlier granted to a Participant under the Option
Plan without the consent of that Participant.

	9.	 	No Further Rights

          Nothing contained in the Option Plan nor in any option granted under this Option Plan shall
give any Participant or any other person, any interest or title in or to any Common Shares of the
Corporation or any rights as a shareholder of the Corporation or any other legal or equitable right
against the Corporation other than as set out in the Option Plan and pursuant to the exercise of
any option, nor shall it confer upon the Participants any right to continue as an employee,
officer, consultant or director of the Corporation or of its subsidiaries.

	10.	 	Compliance with Laws

          The obligations of the Corporation to sell Common Shares and deliver share certificates under
the Option Plan are subject to such compliance by the Corporation and the Participants as the
Corporation deems necessary or advisable with all applicable corporate and securities laws, rules
and regulations.

	11.	 	Gender

          The use of the masculine gender in this Option Plan shall be deemed to include or be replaced
by the feminine gender where appropriate to the particular Participant.

	12.	 	Stock Exchange Requirements

          The terms and conditions of the Option Plan and the implementation thereof shall at all times
be subject to the rules and regulations of any stock exchange on which the Shares are listed, and,
in the event of any inconsistency between the terms and conditions of the Option Plan and the rules
and regulations of any such exchange, the rules and regulations of such exchange shall prevail.

 

F-7

SCHEDULE A — FORM OF OPTION AGREEMENT

AUSAM ENERGY CORPORATION

OPTION PLAN

OPTION AGREEMENT

     This Option Agreement is entered into between Ausam Energy Corporation (the “Corporation”) and
the Optionholder named below pursuant to the Corporation’s Option Plan (the “Option Plan”), a copy
of which is attached hereto, and confirms that:

	[1]	 	On                                                              (the “Grant Date”);
	 
	[2]	 	                                                            ( the “Optionholder”);
	 
	[3]	 	Was granted a non-assignable option to purchase                                          Common Shares (the “Optioned Shares”) of the
Corporation, exercisable as to one-third on the date of grant and the first and second anniversary dates of the Grant
Date;
	 
	[4]	 	At a price (the “Exercise Price”) of $                                         per Optioned Share; and
	 
	[5]	 	For a term expiring at 5:00 p.m., Calgary time, on                                          (the “Expiry Date”).

All on the terms and subject to the conditions set out in the Plan. By signing this agreement, the
Optionholder acknowledges that he or she has read and understands the Plan.

Without prior written approval of the TSX Venture Exchange and in compliance with all applicable
securities legislation, the Option Shares represented by this Option Agreement may not be sold,
transferred, hypothecated or otherwise traded on or through the facilities of the TSX Venture
Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until                     ,
200• .

     IN WITNESS WHEREOF the Corporation and the Optionholder have executed this Option Agreement as
of                                         , 20___.

	 	 	 	 	 	 	 
	 	 	AUSAM ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 
	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name of Optionholder	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature of Optionholder	 	 

 

F-8

SCHEDULE B — FORM OF NOTICE OF EXERCISE

AUSAM ENERGY CORPORATION

OPTION PLAN

NOTICE OF EXERCISE

AUSAM ENERGY CORPORATION

1430, 1122 — 4th Street S.W.

Calgary, Alberta T2P 1M1

Attention: Corporate Secretary

     Reference is made to the Option Agreement made as of                     , 200___, between Ausam Energy
Corporation (the “Corporation”) and the Optionholder named below. The Optionholder hereby exercises
the Option to purchase Common Shares (the “Optioned Shares”) of the Corporation as follows:

	 	 	 
	Number of Optioned Shares for which Option
being exercised

	 	                                                              
	 
	 	 
	Exercise Price per Optioned Share:

	 	$                                                            
	 
	 	 
	Total Exercise Price (in the form of a cheque
(which need not be a certified cheque) or
bank draft tendered with this Notice of
Exercise):

	 	$                                                            
	 
	 	 
	Name of Optionholder as it is to appear on
share certificate:

	 	                                                                         
    
	 
	 	 
	Address of Optionholder as it is to appear on
the register of Common Shares of the
Corporation and to which a certificate
representing the Common Shares being
purchased is to be delivered:

	 	                                                                         
    

Dated:                                         , _____.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Name of Optionholder
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature of Optionholder

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