EXHIBIT 4.26
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN
ISSUED PURSUANT TO REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE "ACT"). AS SUCH, THE SECURITIES REPRESENTED BY THIS
WARRANT ARE "RESTRICTED SECURITIES" AND MAY NOT BE SOLD, OFFERED FOR SALE,
TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR
DISPOSED OF OTHER THAN (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AS TO
THE SHARES REPRESENTED BY THIS WARRANT UNDER THE ACT, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE ACT,
(III) PURSUANT TO RULE 144 UNDER THE ACT, OR (IV) PURSUANT TO ANOTHER AVAILABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT. THE HOLDER HEREOF
AGREES THAT (A) ANY HEDGING TRANSACTION WITH RESPECT TO THE SECURITIES
REPRESENTED BY THIS WARRANT WILL BE CONDUCTED IN COMPLIANCE WITH THE ACT AND (B)
IT WILL DELIVER, OR CAUSE TO BE DELIVERED, TO EACH PERSON TO WHOM THE SECURITIES
REPRESENTED BY THIS WARRANT ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT
OF THIS LEGEND. AS USED HEREIN, THE TERMS "OFFSHORE TRANSACTION" AND "UNITED
STATES" HAVE THE RESPECTIVE MEANINGS ASSIGNED TO THEM IN REGULATION S UNDER THE
ACT.
Right to Purchase up to ___________ Shares of Common Stock of
PACIFIC ENERGY RESOURCES LTD.
(subject to adjustment as provided herein)
COMMON STOCK PURCHASE WARRANT
Certificate No. N__ Issue Date: October 18, 2007
VOID AFTER 5:00 P.M. LOCAL TIME, APRIL 18, 2009
PACIFIC ENERGY RESOURCES LTD., a corporation organized under the laws of
the State of Delaware (the "Corporation"), hereby certifies that, for value
received, __________________ or its assigns (the "Holder"), is entitled, subject
to the terms set forth below, to purchase from the Corporation (as defined
herein) from and after the Issue Date of this Common Stock Purchase Warrant
("Warrant") and at any time or from time to time before 5:00 p.m. local time
through the close of business on April 18, 2009 (the "Expiration Date"), up to
______________________ fully paid and nonassessable shares of Common Stock (as
hereinafter defined), at the applicable Exercise Price (as defined below) per
share. The number and character of such shares of Common Stock and the
applicable Exercise Price per share are subject to adjustment as provided
herein.
As used herein the following terms, unless the context otherwise requires,
have the following respective meanings:
(a) The term "Common Stock" includes (i) the Corporation's common
stock, par value $0.0001 per share; and (ii) any other securities into
which or for which any of the securities described in the preceding clause
(i) may be converted or exchanged pursuant to a plan of recapitalization,
reorganization, merger, sale of assets or otherwise.
(b) The term "Corporation" includes Pacific Energy Resources Ltd.
and any corporation which shall succeed to, or assume the obligations of,
Pacific Energy Resources Ltd. hereunder.
(c) The term "Exchange Rate" means, in relation to any amount of
currency to be converted into U.S. dollars pursuant to this Warrant, the
U.S. dollar exchange rate as published in the Wall Street Journal from
time to time.
(d) The "Exercise Price" applicable under this Warrant shall be
CAD $2.65 per Common Share (subject to adjustment pursuant to Section 5).
(e) The term "Other Securities" refers to any stock (other than
Common Stock) and other securities of the Corporation or any other person
(corporate or otherwise) which the holder of the Warrant at any time shall
be entitled to receive, or shall have received, on the exercise of the
Warrant, in lieu of or in addition to Common Stock, or which at any time
shall be issuable or shall have been issued in exchange for or in
replacement of Common Stock or Other Securities pursuant to Section 4 or
otherwise.
(f) The term "Subscription Agreement" means the Subscription
Agreement for Units between the Corporation and the Holder, duly accepted
by the Corporation on October 18, 2007.
All other defined terms have the meaning attributed to them in the
Subscription Agreement.
1. EXERCISE OF WARRANT.
1.1 NUMBER OF SHARES ISSUABLE UPON EXERCISE. From and after the date
hereof through and including the Expiration Date, the Holder shall be entitled
to receive, upon exercise of this Warrant in whole or in part, by delivery to
the Corporation of this Warrant Certificate, an original copy of an exercise
notice in the form attached hereto as Exhibit A (the "Subscription Form") duly
completed and executed and the satisfaction of the surrender and payment
requirements of Section 2, the number of shares of Common Stock of the
Corporation set forth in the Subscription Form, subject to adjustment pursuant
to Section 5.
1.2 FAIR MARKET VALUE. For purposes hereof, the "Fair Market Value" of a
share of Common Stock as of a particular date (the "Determination Date") shall
mean:
(a) If the Corporation's Common Stock is traded on the Toronto
Stock Exchange ("TSX"), then the average of the U.S. dollar equivalent
(calculated at the prevailing Exchange Rate on each day) of the closing or
last sale price reported for the twenty (20) trading days immediately
preceding the Determination Date.
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(b) If the Corporation's Common Stock is not traded on the TSX but
is traded on the Nasdaq Global Select Market, Global Market or Capital
Market (collectively, "Nasdaq"), the American Stock Exchange ("AMEX") or
another national exchange, the average of the closing or last sale price
reported for the twenty (20) trading days immediately preceding the
Determination Date.
(c) If the Corporation's Common Stock is not traded on the TSX,
Nasdaq or AMEX, but is quoted on the NASD OTC Bulletin Board, then the
mean of (i) the average of the closing bid price and (ii) the average of
the closing ask price, in each case reported for the twenty (20) trading
days immediately preceding the Determination Date.
(d) If the Corporation's Common Stock is not publicly traded, then
as the Holder and the Corporation agree or in the absence of agreement by
arbitration in accordance with the rules then in effect of the American
Arbitration Association before a single arbitrator to be chosen from a
panel of persons qualified by education and training to pass on the matter
to be decided.
1.3 CORPORATION ACKNOWLEDGMENT. The Corporation will, at the time of the
exercise of the Warrant, upon the request of the Holder acknowledge in writing
its continuing obligation to afford to such Holder any rights to which such
Holder shall continue to be entitled after such exercise in accordance with the
provisions of this Warrant. If the Holder shall fail to make any such request,
such failure shall not affect the continuing obligation of the Corporation to
afford to such Holder any such rights.
1.4 REGISTRATION RIGHTS. The Holder shall, with respect to the shares of
Common Stock issuable upon exercise of this Warrant, have incidental
registration rights in accordance with the terms of the Registration Rights
Agreement attached to the Subscription Agreement.
1.5 LEGENDS.
(a) Each certificate for Common Stock issued upon exercise of this
Warrant shall bear the following legend:
"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED PURSUANT
TO REGULATION S PROMULGATED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "ACT"). AS SUCH, THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE "RESTRICTED SECURITIES" AND MAY NOT BE SOLD, OFFERED FOR
SALE, TRANSFERRED, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE
TRANSFERRED OR DISPOSED OF OTHER THAN (I) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AS TO THE SHARES REPRESENTED BY THIS CERTIFICATE
UNDER THE ACT, (II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION
IN COMPLIANCE WITH RULE 904 UNDER THE ACT, (III) PURSUANT TO RULE 144
UNDER THE ACT, OR (IV) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE ACT. THE HOLDER HEREOF AGREES THAT (A)
ANY HEDGING TRANSACTION WITH RESPECT TO THE SECURITIES REPRESENTED BY THIS
CERTIFICATE WILL BE CONDUCTED IN COMPLIANCE WITH THE ACT AND (B) IT WILL
DELIVER, OR CAUSE TO BE DELIVERED, TO EACH PERSON TO WHOM THE SECURITIES
REPRESENTED BY THIS CERTIFICATE ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO
THE EFFECT OF THIS LEGEND. AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION" AND "UNITED STATES" HAVE THE RESPECTIVE MEANINGS ASSIGNED TO
THEM IN REGULATION S UNDER THE ACT."
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and
"THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE LISTED ON THE TORONTO
STOCK EXCHANGE ("TSX"); HOWEVER, PRIOR TO FEBRUARY 19, 2008 THE SAID
SECURITIES CANNOT BE TRADED THROUGH THE FACILITIES OF TSX SINCE THEY ARE
NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING
SUCH SECURITIES IS NOT "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON
TSX PRIOR TO SUCH DATE."
(b) If shares of Common Stock are issued to a Canadian resident
upon exercise of this Warrant prior to February 19, 2008, each certificate
for such shares of Common Stock shall, in addition to the legend in
Section 1.5(a), bear the following legend:
"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS
SECURITY MUST NOT TRADE THE SECURITY BEFORE FEBRUARY 19, 2008."
2. PROCEDURE FOR EXERCISE.
2.1 DELIVERY OF STOCK CERTIFICATES, ETC., ON EXERCISE. The Corporation
agrees that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder as the owner of record of such shares
as of the close of business on the date on which the duly completed and executed
Subscription Form, this Warrant Certificate and payment for such shares shall
have been received by the Corporation in accordance herewith. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within five (5) business days thereafter, the Corporation at the
Corporation's expense (including the payment by it of any applicable issue
taxes) will cause to be issued in the name of and delivered to the Holder, or as
such Holder (upon payment by such Holder of any applicable transfer taxes) may
direct in compliance with applicable securities laws, a certificate or
certificates for the number of duly and validly issued, fully paid and
nonassessable shares of Common Stock (or Other Securities) to which such Holder
shall be entitled on such exercise. As to any fraction of a share that the
Holder of one or more Warrants, the rights under which are exercised in the same
transaction, would otherwise be entitled to purchase upon such exercise, the
Corporation shall pay to such Holder an amount in cash equal to such fraction
multiplied by the Fair Market Value of one share of Common Stock on the date of
exercise. Following a partial exercise of this Warrant prior to the Expiration
Date, the Corporation shall cancel this Warrant Certificate and, within five
business days, execute and deliver to the Holder a new Warrant Certificate of
like tenor covering the remaining balance of the shares of Common Stock subject
to this Warrant Certificate.
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2.2 EXERCISE. Payment may be made by certified check or bank draft
payable to the order of the Corporation equal to the applicable aggregate
Exercise Price, for the number of Common Shares specified in such Subscription
Form (as such exercise number shall be adjusted to reflect any adjustment in the
total number of shares of Common Stock issuable to the Holder in accordance with
the terms of this Warrant) and the Holder shall thereupon be entitled to receive
the number of duly authorized, validly issued, fully-paid and non-assessable
shares of Common Stock (or Other Securities) determined as provided herein.
2.3 REPRESENTATION. The Holder of this Warrant has represented to the
Corporation that it is acquiring this Warrant for its own account and not with a
view toward, or for resale in connection with, the public sale or distribution
of this Warrant or the underlying shares of Common Stock, except pursuant to
sales registered or exempted under the Securities Act of 1933, as amended (the
"Securities Act"). The Holder of this Warrant further represented that as of the
Issue Date, the Holder, was purchasing the Shares in compliance with securities
laws in its jurisdiction of residence and pursuant to an exemption from any
prospectus or securities registration requirements available to the Corporation
and the Holder under applicable securities laws of their jurisdiction of
resident or to which the Holder is otherwise subject. Upon exercise of this
Warrant, the Holder shall, if requested by the Corporation, confirm in writing,
in a form satisfactory to the Corporation, representations concerning the
matters described in this Section 2.3.
3. EFFECT OF REORGANIZATION, ETC.; ADJUSTMENT OF EXERCISE PRICE.
3.1 REORGANIZATION, CONSOLIDATION, MERGER, ETC. If at any time or from
time to time, the Corporation (a) effects a reorganization, (b) consolidates
with or merges into any other person, or (c) transfers all or substantially all
of its properties or assets to any other person under any plan or arrangement
contemplating the dissolution of the Corporation, then, in each such case, as a
condition to the consummation of such a transaction, proper and adequate
provision shall be made by the Corporation whereby the Holder of this Warrant,
on the exercise hereof as provided in Section 1 at any time after the
consummation of such reorganization, consolidation or merger or the effective
date of such dissolution, as the case may be, shall receive, in lieu of the
Common Stock (or Other Securities) issuable on such exercise prior to such
consummation or such effective date, the stock and other securities and property
(including cash) to which such Holder would have been entitled upon such
consummation or in connection with such dissolution, as the case may be, if such
Holder had so exercised this Warrant, immediately prior thereto, all subject to
further adjustment thereafter as provided in Section 4.
3.2 DISSOLUTION. In the event of any dissolution of the Corporation
following the transfer of all or substantially all of its properties or assets,
the Corporation, concurrently with any distributions made to holders of its
Common Stock, shall at its expense deliver or cause to be delivered to the
Holder the stock and other securities and property (including cash, where
applicable) receivable by the Holder of this Warrant pursuant to Section 3.1, or
if the Holder also instructs the Corporation, to a bank or trust company
specified by the Holder as trustee for the Holder (the "Trustee").
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3.3 CONTINUATION OF TERMS. Upon any reorganization, consolidation,
merger or transfer (and any dissolution following any transfer) referred to in
this Section 3, this Warrant shall continue in full force and effect and the
terms hereof shall be applicable to the shares of stock and other securities and
property receivable on the exercise of this Warrant after the consummation of
such reorganization, consolidation or merger or the effective date of
dissolution following any such transfer, as the case may be, and shall be
binding upon the issuer of any such stock or other securities, including, in the
case of any such transfer, the person acquiring all or substantially all of the
properties or assets of the Corporation, whether or not such person shall have
expressly assumed the terms of this Warrant as provided in Section 4. If this
Warrant does not continue in full force and effect after the consummation of the
transactions described in this Section 3, then the Corporation's securities and
property (including cash, where applicable) receivable by the Holder of this
Warrant will be delivered to the Holder or the Trustee as contemplated by
Section 3.2.
4. EXTRAORDINARY EVENTS REGARDING COMMON STOCK.
If the Corporation (a) issues additional shares of the Common Stock as a
dividend or other distribution on outstanding Common Stock or any preferred
stock issued by the Corporation, (b) subdivides its outstanding shares of Common
Stock, or (c) combines its outstanding shares of the Common Stock into a smaller
number of shares of the Common Stock, then, in each such event, the Exercise
Price shall, simultaneously with the happening of such event, be adjusted by
multiplying the then Exercise Price by a fraction, the numerator of which shall
be the number of shares of Common Stock outstanding immediately prior to such
event and the denominator of which shall be the number of shares of Common Stock
outstanding immediately after such event, and the product so obtained shall
thereafter be the Exercise Price then in effect. The Exercise Price, as so
adjusted, shall be readjusted in the same manner upon the happening of any
successive event or events described herein in this Section 4. The number of
shares of Common Stock that the Holder of this Warrant shall thereafter, on the
exercise hereof as provided herein in Section 1, be entitled to receive shall be
adjusted to a number determined by multiplying the number of shares of Common
Stock that would otherwise (but for the provisions of this Section 4) be
issuable on such exercise by a fraction of which (a) the numerator is the
Exercise Price that would otherwise (but for the provisions of this Section 4)
be in effect, and (b) the denominator is the Exercise Price in effect on the
date of such exercise.
5. CERTIFICATE AS TO ADJUSTMENTS.
In each case of any adjustment or readjustment in the shares of Common
Stock (or Other Securities) issuable on the exercise of the Warrant as provided
for in Section 3 or 4 above, the Corporation at its expense will promptly cause
its Chief Financial Officer or other appropriate designee to compute such
adjustment or readjustment in accordance with the terms of the Warrant and
prepare a certificate setting forth such adjustment or readjustment and showing
in detail the facts upon which such adjustment or readjustment is based,
including a statement of (a) the consideration received or receivable by the
Corporation for any additional shares of Common Stock (or Other Securities)
issued or sold or deemed to have been issued or sold, (b) the number of shares
of Common Stock (or Other Securities) outstanding or deemed to be outstanding,
and (c) the Exercise Price and the number of shares of Common Stock to be
received upon exercise of this Warrant, in effect immediately prior to such
adjustment or readjustment and as adjusted or readjusted as provided in this
Warrant. The Corporation will forthwith mail or cause to be mailed a copy of
each such certificate to the Holder of this Warrant.
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6. RESERVATION OF STOCK, ETC. ISSUABLE ON EXERCISE OF WARRANT.
The Corporation will at all times reserve and keep available, solely for
issuance and delivery on the exercise of this Warrant, shares of Common Stock
(or Other Securities) from time to time issuable on the exercise of this
Warrant.
7. ASSIGNMENT; EXCHANGE OF WARRANT.
Subject to compliance with applicable securities laws, this Warrant, and
the rights evidenced hereby, may be transferred by any registered holder hereof
(a "Transferor") in whole or in part. On the surrender for exchange of this
Warrant, with the Transferor's endorsement in the form of Exhibit B (the
"Transferor Endorsement Form"), together with evidence reasonably satisfactory
to the Corporation demonstrating compliance with applicable securities laws in a
manner consistent with the restrictive legend on this Warrant, the Corporation
at the Corporation's expense (but with payment by the Transferor of any
applicable transfer taxes), will cause to be issued and delivered to or on the
order of the Transferor thereof a new Warrant of like tenor, in the name of the
Transferor and/or the transferee(s) specified in such Transferor Endorsement
Form (each a "Transferee"), calling in the aggregate on the face or faces
thereof for the number of shares of Common Stock called for on the face or faces
of the Warrant so surrendered by the Transferor.
8. REPLACEMENT OF WARRANT.
On receipt of evidence reasonably satisfactory to the Corporation of the
loss, theft, destruction or mutilation of this Warrant and, in the case of any
such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement and surety bond reasonably satisfactory in form and amount to the
Corporation, the Corporation at the Holder's expense and Holder's payment of
charges of the Corporation, will execute and deliver, in lieu thereof, a new
Warrant of like tenor.
9. EXERCISE RESTRICTIONS.
9.1 LIMITATION ON NUMBER OF SHARES ISSUABLE. Notwithstanding anything
contained herein to the contrary, the rights represented by this Warrant shall
not be exercisable by the Holder and the Corporation shall not give effect to
any such exercise, if and solely to the extent that after giving effect to such
exercise, the Holder, together with any person or company acting jointly or in
concert with the Holder with respect to the voting of voting securities of the
Corporation (the "Joint Actors") would in the aggregate directly or indirectly
own or exercise control or direction over the voting of that number of voting
securities of the Corporation (not including shares subject to a warrant as to
which no notice of exercise and corresponding payment has been delivered) that
is 19.99% or greater of the total issued and outstanding voting securities of
the Corporation after giving effect to such exercise.
9.2 PROVISION OF OFFICER'S CERTIFICATE. Prior to exercising the rights
represented by this Warrant, the Holder shall provide the Corporation with an
officer's certificate stating the number of voting securities of the Corporation
held by the Holder and its Joint Actors, if any, as of the date provided for in
the exercise notice (the "Officer's Certificate") and the Corporation shall be
entitled to rely on the Officer's Certificate in making any determinations
regarding the total issued and outstanding voting securities of the Corporation
to be held by the Holder and its Joint Actors, if any, after giving effect to
the exercise. The execution of the Subscription Form by the Holder will suffice
as the Holder's acknowledgement of compliance with such exercise limits as set
forth in this Section 9.
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10. TRANSFER ON THE CORPORATION'S BOOKS.
Until this Warrant is transferred on the books of the Corporation, the
Corporation may treat the registered Holder hereof as the absolute owner hereof
for all purposes, notwithstanding any notice to the contrary.
11. NOTICES, ETC.
All notices and other communications from the Corporation to the Holder of
this Warrant shall be delivered by ordinary surface or air mail, postage
prepaid, addressed to the Holder or delivered at their respective address
appearing on the register of Holders.
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12. MISCELLANEOUS.
Notwithstanding any provision to the contrary contained in this Warrant,
no Common Stock will be issued pursuant to the exercise of this Warrant if the
issuance of such securities may constitute a violation of the securities laws of
any applicable jurisdiction. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF STATE OF CALIFORNIA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS. ANY ACTION BROUGHT CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS
WARRANT SHALL BE BROUGHT ONLY IN THE STATE COURTS OF CALIFORNIA OR IN THE
FEDERAL COURTS LOCATED IN THE STATE OF CALIFORNIA. The Holder and the
Corporation shall submit to the jurisdiction of such courts and waive trial by
jury. The prevailing party shall be entitled to recover from the other party its
reasonable attorney's fees and costs. If any provision of this Warrant is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision of this
Warrant. The headings in this Warrant are for purposes of reference only, and
shall not limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision hereof.
IN WITNESS WHEREOF, the Corporation has executed this Warrant as of the
date first written above.
PACIFIC ENERGY RESOURCES LTD.
By:_____________________________________
Xxxxxx Xxxxx, President
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