JPMorgan - KASE

Indebtedness of Directors and Senior Officers
At no time during the fiscal year ended December 31, 2001 was there any indebtedness of any
director or officer, or any associate of any director or officer, to us or any other entity which is or,
at any time since the beginning of the most recently completed financial year, has been the
subject of a guarantee, support agreement letter of credit or other similar arrangement or
understanding provided by us, and which was not repaid prior to the date of this offering
memorandum.
Warrants
On March 7, 2000, we closed an offering of 9,346,000 special warrants at a price of Cdn.$3.90 per
special warrant. Each special warrant was exercisable into one Hurricane Hydrocarbons common
share without payment of further consideration to us by the holders of special warrants. The
special warrants were exercised on or about July 11, 2000 with 9,346,000 Hurricane Hydrocarbons
common shares being issued upon their exercise. The following members of management and
shareholders purchased special warrants pursuant to that offering and later received our
common shares upon exercise of the special warrants:
Name
Number
of Special
Warrants
Acquired
Bernard F. Isautier, Chairman of the Board, President, Chief Executive Officer and
Director .................................................................. 1,492,400
Central Asian Industrial Holdings N.V. .......................................... 1,114,300
Ihor Wasylkiw Vice President, Investor Relations ................................. 12,000
Louis W. MacEachern, Director ................................................ 8,200
Robert P. Kaplan, Director .................................................... 25,000
On February 23, 2001, we redeemed a total of 4,943,020 outstanding Series 5 Warrants at a price
of Cdn.$2.90 per warrant. The Series 5 Warrants were each exercisable into one Hurricane
Hydrocarbons common share at an exercise price of Cdn.$6.25 per share. Mr Isautier held 9,000
Series 5 Warrants that were redeemed by us.
We issued a total of 2,034,547 of securities convertible into our common stock to CAIH pursuant
to the HOP transaction agreement, which correspond to the Series 5 Warrants that were
redeemed by us at a redemption price of Cdn.$2.90 per warrant, as discussed under
“Management’s Discussion and Analysis of Financial Condition and Results of Operations —
Liquidity and Capital Resources”. We redeemed these corresponding convertible securities from
CAIH at the same redemption price as the Series 5 Warrants.
Redemption of Notes held by CAIH
Our Senior Notes were issued to our shareholders of record as of August 2, 2001. As our largest
shareholder, CAIH received approximately $54.9 million in principal amount of the Senior Notes.
We redeemed all of the Senior Notes held by CAIH on the same terms as the Senior Notes held by
other debtholders on February 3, 2003.
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