Document:

Escrow Agreement

 Exhibit 10.2 
 ESCROW AGREEMENT 
 between 
 TRANSMERIDIAN EXPLORATION INCORPORATED, 
 JEFFERIES & COMPANY, INC., as
Placement Agent 
 and 
 THE BANK
OF NEW YORK, as Escrow Agent 
 Dated as of June 26, 2007 
 ACCOUNT NUMBER(S): 361785 
 SHORT TITLE OF ACCOUNT: Transmeridian Explrtn/Jefferies Co Esc 

 This ESCROW AGREEMENT is made this 26th day of June, 2007, by and between THE BANK OF NEW YORK
(“Escrow Agent”), TRANSMERIDIAN EXPLORATION INCORPORATED (“TMY”) and JEFFERIES & COMPANY, INC., as placement agent (“Jefferies”, and together with TMY, the
“Depositors” and each individually a “Depositor”). 
 Depositors and Escrow Agent hereby
agree that, in consideration of the mutual promises and covenants contained herein, Escrow Agent shall hold in escrow and shall distribute the Escrow Property (as defined herein) in accordance with and subject to the following instructions and Terms
and Conditions (as defined below). 
 As used herein, “Stockholder Approval Certificate” means a certificate in
writing, duly executed by an authorized officer of TMY, certifying that TMY has (i) received duly executed written consents or proxies from the holders in the aggregate of a majority of the outstanding shares of TMY’s common stock
approving, pursuant to Section 713 of the AMEX Company Guide, TMY’s issuance or potential issuance, pursuant to the Certificate of Designations, dated June 18, 2007, governing TMY’s 20% Junior Redeemable Convertible Preferred
Stock, par value $0.0006 per share (such series, the “Junior Preferred Stock”), of an aggregate number of shares of TMY’s common stock which equals 20% or more of the aggregate number of shares of TMY’s common stock
outstanding on June 18, 2007 (i.e., the date of the Commitment Letter, dated June 18, 2007, by and among TMY and the investors party thereto) and (ii) filed with the U.S. Securities and Exchange Commission a preliminary
information statement or definitive proxy statement with respect to such stockholder approval. 
 As used herein, “Escrow Release
Certificate” means a certificate in writing, duly executed by an authorized officer of TMY, certifying that TMY has received duly executed written consents or proxies from the holders in the aggregate of two-thirds of the
then-outstanding shares of the Junior Preferred Stock (including the Securities (as defined below)) approving the release of (i) the Cash (as defined below) to TMY and Jefferies and (ii) the Securities to Jefferies in accordance with the
terms of this Agreement. 
 I. INSTRUCTIONS: 
  

	1.	Escrow Property; Delivery of Funds from Jefferies to TMY 

 The property and/or funds deposited or to be deposited with Escrow Agent by TMY shall be 330,000 shares of the Junior Preferred Stock, in book-entry form (such 330,000 shares of the Junior Preferred Stock, the
“Securities”). The Securities shall be issued in such name(s) and denomination(s) as TMY shall request in writing to the transfer agent and registrar for the Securities. 
 The property and/or funds deposited or to be deposited with Escrow Agent by Jefferies shall be $33,000,000 in cash (such amount, including the
Distributions (as defined below) thereon, the “Cash”) in respect of the issuance and sale of the Securities pursuant to the Regulation D Purchase Agreement, dated June 26, 2007, by and among TMY and the various investors
party thereto (the “Purchase Agreement”), and the related Placement Agency Agreement, dated as of June 26, 2007, by and among Jefferies, as placement agent, and TMY. 
 Upon the deposit of the Securities and the Cash, Escrow Agent will execute and deliver to TMY and Jefferies, as promptly as practicable, written
confirmation of the receipt by Escrow Agent of the Securities and the Cash, in such form as may be reasonably requested by TMY and Jefferies. 

 The foregoing property and/or funds, plus all interest, dividends and other distributions and payments
thereon (collectively, the “Distributions”) received by Escrow Agent, less any property and/or funds distributed or paid in accordance with this Escrow Agreement, are collectively referred to herein as the “Escrow
Property.” 
 In addition to the above-referenced deposit of cash by Jefferies with the Escrow Agent, Jefferies hereby agrees to
deliver to TMY on the Closing Date (as defined in the Purchase Agreement) $10,990,000, by wire transfer of immediately available funds, according to the written wire transfer instructions previously provided to Jefferies by TMY. 
  

	2.	Investment of the Cash 

 Upon written directions
from Jefferies, the Escrow Agent shall invest or reinvest the Cash without distinction between principal and income, in the following: 
 One
or more short-term market instruments including but not limited to marketable obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities, bank instruments, corporate debt securities issued by U.S. or foreign
companies, commercial paper, demand instruments, adjustable rate obligations, asset- backed securities, restricted securities, fully collateralized repurchase agreements or money market funds subject to the requirements of the Investment Company Act
of 1940, as amended, invested in any one or more of the aforementioned types of instruments. Escrow Agent shall have no liability for any loss arising from or related to any such investment other than in accordance with paragraph 4 of the Terms and
Conditions. 
  

	3.	Distribution of Escrow Property 

 Upon the receipt
from TMY of either the Stockholder Approval Certificate or the Escrow Release Certificate, Jefferies hereby agrees to promptly (and in any event within one business day of the date of such receipt) provide written directions to Escrow Agent
authorizing (i) the release to TMY and Jefferies of the Cash and (ii) the release to Jefferies of the Securities for delivery to the investors party to the Purchase Agreement. 
 Unless otherwise agreed to in writing by TMY and Jefferies, upon the delivery by TMY to Jefferies of either the Stockholder Approval Certificate or the
Escrow Release Certificate, TMY and Jefferies hereby agree that the release of the Cash to TMY and Jefferies pursuant to the immediately preceding paragraph shall be, and Jefferies hereby agrees to instruct Escrow Agent in writing, as follows:
(i) $1,815,000 to Jefferies and (ii) all remaining amounts (including Distributions) to TMY. 
  

	4.	Actions with Respect to Escrow Property 

 Escrow
Agent is hereby directed to hold the Escrow Property. Except as provided in Section 6 hereof with respect to a termination of this Escrow Agreement, Escrow Agent is hereby (i) directed to distribute the Escrow Property only in accordance
with written directions from Jefferies, which written directions are hereby authorized, and (ii) authorized by each of the Depositors to accept, and to act in accordance with, such written directions from Jefferies. 
 Escrow Agent is further authorized and directed by each of the Depositors, upon its receipt from time to time of written directions from Jefferies, which
written directions are hereby authorized, to accept such written directions and to vote the Securities in accordance with, and in the manner specified in, such written directions (which may include written consent or duly executed proxy). Jefferies
hereby agrees that, in 

 
connection with any vote (including a vote by written consent or duly executed proxy) by the holders of the Junior Preferred Stock, it will instruct the
Escrow Agent to vote the Securities in the same proportions (or as nearly equal thereto as is practicable) as the votes (including any votes by written consent or duly executed proxy) cast on such matter by the holders of the Junior Preferred Stock
(excluding the Securities). 
 Except as may otherwise be expressly provided for in this Escrow Agreement, Escrow Agent shall not take any
action with respect to the Cash or the Securities, including but not limited to (i) any sale, transfer, encumbrance, conversion or “put” of the Securities or (ii) any voting, or any delivery of a written consent or proxy, with
respect to the Securities, except in accordance with written directions from TMY and Jefferies. 
  

	5.	Addresses 

 Notices, instructions and other
communications shall be sent to Escrow Agent, The Bank of New York, 101 Barclay Street, 8th Floor West, New York, New York 10286, Attn: Gina Jones, Corporate Trust Escrow Unit, and to Depositors as follows: 
  

					
	 Jefferies & Company, Inc.
	  	Transmeridian Exploration Incorporated	  	
	 520 Madison Avenue
	  	397 N. Sam Houston Pkwy E.	  	
	 New York, New York 10022
	  	Suite 300	  	
	 Attention: Mark Sahler
	  	Houston, Texas 77060	  	
		  	Attention: Earl W. McNiel	  	

  

	6.	Distribution of Escrow Property Upon Termination 

 As promptly as practicable following the termination of this Escrow Agreement pursuant to Section 18 hereof, any Escrow Property then held hereunder shall be distributed by Escrow Agent as follows: (i) any and all Cash shall be
delivered to Jefferies pursuant to Jefferies’ written directions to the Escrow Agent, which written directions are hereby authorized, and (ii) any and all Securities shall be delivered to TMY or such other person as TMY shall direct, in
any event pursuant to TMY’s written directions to the Escrow Agent, which written directions are hereby authorized. Escrow Agent is hereby authorized by each of the Depositors to accept, and to act in accordance with, such written directions
delivered pursuant to this Section 6. 
  

	7.	Compensation 

  

	 	(a)	At the time of execution of this Escrow Agreement, TMY shall pay Escrow Agent an acceptance fee of $0.00. In addition, TMY shall pay Escrow Agent an annual fee of $6,000.00, payable
upon execution of this Escrow Agreement and thereafter on each anniversary date of this Escrow Agreement. The annual fee shall not be pro-rated for any portion of a year. See Schedule A. 

  

	 	(b)	TMY shall pay all activity charges as per Escrow Agent’s current fee schedule. 

  

	 	(c)	TMY shall be responsible for and shall reimburse Escrow Agent upon demand for all expenses, disbursements and advances incurred or made by Escrow Agent in connection with this
Agreement. 

 II. TERMS AND CONDITIONS: 
  

	1.	 The duties, responsibilities and obligations of Escrow Agent shall be limited to those expressly set forth herein and no duties, responsibilities or obligations
shall be inferred or implied. Escrow Agent shall not be subject to, nor required to comply with, any other 

	 	 
agreement between or among any or all of the Depositors or to which any Depositor is a party, even though reference thereto may be made herein, or to comply
with any direction or instruction (other than those contained herein or delivered in accordance with this Escrow Agreement) from any Depositor or any entity acting on its behalf. Escrow Agent shall not be required to, and shall not, expend or risk
any of its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. 

  

	2.	This Agreement is for the exclusive benefit of the parties hereto and their respective successors hereunder, and shall not be deemed to give, either express or implied, any legal or
equitable right, remedy, or claim to any other entity or person whatsoever. 

  

	3.	If at any time Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process which in any way affects
Escrow Property (including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of Escrow Property), Escrow Agent is authorized to comply therewith in any manner as it or
its legal counsel of its own choosing deems appropriate; and if Escrow Agent complies with any such judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process, Escrow Agent shall not be liable to any
of the parties hereto or to any other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise determined to have been without legal force or effect. 

  

			
	 4.
	  	(a) Escrow Agent shall not be liable for any action taken or omitted or for any loss or injury resulting from its actions or its performance or lack of performance of its duties hereunder in
the absence of gross negligence or willful misconduct on its part. In no event shall Escrow Agent be liable (i) for acting in accordance with or relying upon any instruction, notice, demand, certificate or document from any Depositor or any
entity acting on behalf of any Depositor, (ii) for any consequential, punitive or special damages, (iii) for the acts or omissions of its nominees, correspondents, designees, subagents or subcustodians, or (iv) for an amount in excess
of the value of the Escrow Property, valued as of the date of deposit.
		
		  	(b) If any fees, expenses or costs incurred by, or any obligations owed to, Escrow Agent hereunder are not promptly paid when due, Escrow Agent may reimburse itself therefor from the Cash
included in the Escrow Property and may thereafter sell, convey or otherwise dispose of any Escrow Property for such purpose.
		
		  	(c) As security for the due and punctual performance of any and all of Depositors’ obligations to Escrow Agent hereunder, now or hereafter arising, Depositors, individually and
collectively, hereby pledge, assign and grant to Escrow Agent a continuing security interest in, and a lien on, the Escrow Property and all Distributions thereon or additions thereto (whether such additions are the result of deposits by Depositors
or the investment of Escrow Property). The security interest of Escrow Agent shall at all times be valid, perfected and enforceable by Escrow Agent against Depositors and all third parties in accordance with the terms of this Escrow
Agreement.
		
		  	(d) Escrow Agent may consult with legal counsel at the expense of TMY as to any matter relating to this Escrow Agreement, and Escrow Agent shall not incur any liability in acting in good
faith in accordance with any advice from such counsel.
		
		  	(e) Escrow Agent shall not incur any liability for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of
Escrow Agent (including but not limited to any act or provision of any present or future law or regulation or governmental authority, any act of God or war, or the unavailability of the Federal Reserve Bank wire or telex or other wire or
communication facility).

	5.	Unless otherwise specifically set forth herein, Escrow Agent shall proceed as soon as practicable to collect any checks or other collection items at any time deposited hereunder.
All such collections shall be subject to Escrow Agent’s usual collection practices or terms regarding items received by Escrow Agent for deposit or collection. Escrow Agent shall not be required, or have any duty, to notify anyone of any
payment or maturity under the terms of any instrument deposited hereunder, nor to take any legal action to enforce payment of any check, note or security deposited hereunder or to exercise any right or privilege which may be afforded to the holder
of any such security. 

  

	6.	Escrow Agent shall provide to Depositors monthly statements identifying transactions, transfers or holdings of Escrow Property and each such statement shall be deemed to be correct
and final upon receipt thereof by the Depositors unless Escrow Agent is notified in writing to the contrary within thirty (30) business days of the date of such statement. 

  

	7.	Escrow Agent shall not be responsible in any respect for the form, execution, validity, value or genuineness of documents or securities deposited hereunder, or for any description
therein, or for the identity, authority or rights of persons executing or delivering or purporting to execute or deliver any such document, security or endorsement. 

  

	8.	Notices, instructions or other communications shall be in writing and shall be given to the address set forth in the “Addresses” provision herein (or to such other address
as may be substituted therefor by written notification to Escrow Agent or Depositors). Notices to Escrow Agent shall be deemed to be given when actually received by Escrow Agent’s Insurance Trust and Escrow Unit of the Corporate Trust Division.
Escrow Agent is authorized to comply with and rely upon any notices, instructions or other communications believed by it to have been sent or given by Depositors or by a person or persons authorized by Depositors. Whenever under the terms hereof the
time for giving a notice or performing an act falls upon a Saturday, Sunday, or banking holiday, such time shall be extended to the next day on which Escrow Agent is open for business. 

  

	9.	TMY shall be liable for and shall reimburse and indemnify Escrow Agent and hold Escrow Agent harmless from and against any and all claims, losses, liabilities, costs, damages or
expenses (including reasonable attorneys’ fees and expenses) (collectively, “Losses”) arising from or in connection with or related to this Escrow Agreement or being Escrow Agent hereunder (including but not limited to
Losses incurred by Escrow Agent in connection with its successful defense, in whole or in part, of any claim of gross negligence or willful misconduct on its part), provided, however, that nothing contained herein shall require Escrow Agent to be
indemnified for Losses caused by its gross negligence or willful misconduct. 

  

			
	 10.
	  	(a) Depositors may remove Escrow Agent at any time by giving to Escrow Agent thirty (30) calendar days’ prior notice in writing signed by all Depositors. Escrow Agent may resign at
any time by giving to Depositors fifteen (15) calendar days’ prior written notice thereof.

 (b) Within ten (10) calendar days after giving the foregoing notice of removal to Escrow Agent
or receiving the foregoing notice of resignation from Escrow Agent, all Depositors shall jointly agree on and appoint a successor Escrow Agent. If a successor Escrow Agent has not accepted such appointment by the end of such 10-day period, Escrow
Agent may, in its sole discretion, deliver the Escrow Property to any of the Depositors at the address provided herein or may apply to a court of competent jurisdiction for the 

 
appointment of a successor Escrow Agent or for other appropriate relief. The costs and expenses (including reasonable attorneys’ fees and expenses)
incurred by Escrow Agent in connection with such proceeding shall be paid by, and be deemed an obligation of, TMY. 
 (c) Upon receipt of the
identity of the successor Escrow Agent, Escrow Agent shall either deliver the Escrow Property then held hereunder to the successor Escrow Agent, less Escrow Agent’s fees, costs and expenses or other obligations owed to Escrow Agent, or hold
such Escrow Property (or any portion thereof), pending distribution, until all such fees, costs and expenses or other obligations are paid. 
 (d) Upon delivery of the Escrow Property to successor Escrow Agent, Escrow Agent shall have no further duties, responsibilities or obligations hereunder. 
  

			
	 11.
	  	(a) In the event of any ambiguity or uncertainty hereunder or in any notice, instruction or other communication received by Escrow Agent hereunder, Escrow Agent may, in its sole discretion,
refrain from taking any action other than retain possession of the Escrow Property, unless Escrow Agent receives written instructions, signed by all Depositors, which eliminates such ambiguity or uncertainty.

 (b) In the event of any dispute between or conflicting claims by or among the Depositors and/or any
other person or entity with respect to any Escrow Property, Escrow Agent shall be entitled, in its sole discretion, to refuse to comply with any and all claims, demands or instructions with respect to such Escrow Property so long as such dispute or
conflict shall continue, and Escrow Agent shall not be or become liable in any way to the Depositors for failure or refusal to comply with such conflicting claims, demands or instructions. Escrow Agent shall be entitled to refuse to act until, in
its sole discretion, either (i) such conflicting or adverse claims or demands shall have been determined by a final order, judgment or decree of a court of competent jurisdiction, which order, judgment or decree is not subject to appeal, or
settled by agreement between the conflicting parties as evidenced in a writing satisfactory to Escrow Agent or (ii) Escrow Agent shall have received security or an indemnity satisfactory to it sufficient to hold it harmless from and against any
and all Losses which it may incur by reason of so acting. Escrow Agent may, in addition, elect, in its sole discretion, to commence an interpleader action or seek other judicial relief or orders as it may deem, in its sole discretion, necessary. The
costs and expenses (including reasonable attorneys’ fees and expenses) incurred in connection with such proceeding shall be paid by, and shall be deemed an obligation of, TMY. 
  

	12.	This Agreement shall be interpreted, construed, enforced and administered in accordance with the internal substantive laws (and not the choice of law rules) of the State of New
York. Each of the Depositors hereby submits to the personal jurisdiction of and each agrees that all proceedings relating hereto shall be brought in courts located within the City and State of New York or elsewhere as Escrow Agent may select. Each
of the Depositors hereby waives the right to trial by jury and to assert counterclaims in any such proceedings. To the extent that in any jurisdiction any Depositor may be entitled to claim, for itself or its assets, immunity from suit, execution,
attachment (whether before or after judgment) or other legal process, each hereby irrevocably agrees not to claim, and hereby waives, such immunity. Each Depositor waives personal service of process and consents to service of process by certified or
registered mail, return receipt requested, directed to it at the address last specified for notices hereunder, and such service shall be deemed completed ten (10) calendar days after the same is so mailed. 

	13.	Except as otherwise permitted herein, this Escrow Agreement may be modified only by a written amendment signed by all the parties hereto, and no waiver of any provision hereof shall
be effective unless expressed in a writing signed by the party to be charged. 

  

	14.	The rights and remedies conferred upon the parties hereto shall be cumulative, and the exercise or waiver of any such right or remedy shall not preclude or inhibit the exercise of
any additional rights or remedies. The waiver of any right or remedy hereunder shall not preclude the subsequent exercise of such right or remedy. 

  

	15.	Each Depositor hereby represents and warrants (a) that this Escrow Agreement has been duly authorized, executed and delivered on its behalf and constitutes its legal, valid and
binding obligation and (b) that the execution, delivery and performance of this Escrow Agreement by Depositor do not and will not violate any applicable law or regulation. 

  

	16.	The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision; and if any
provision is held to be enforceable as a matter of law, the other provisions shall not be affected thereby and shall remain in full force and effect. 

  

	17.	This Agreement shall constitute the entire agreement of the parties with respect to the subject matter and supersedes all prior oral or written agreements in regard thereto.

  

	 18.
	 This Agreement shall terminate upon the earlier of: (i) the distribution by the Escrow Agent of all Escrow Property
from the Account pursuant to Section 3 hereof, (ii) August 26, 2007, such date being the 61st
calendar day following the date of the Purchase Agreement or (iii) an executed written agreement of termination between the Escrow Agent and the Depositors. The provisions of these Terms and Conditions shall survive termination of this Escrow
Agreement and/or the resignation or removal of the Escrow Agent. 

  

	19.	No printed or other material in any language, including prospectuses, notices, reports, and promotional material which mentions “The Bank of New York” by name or the
rights, powers, or duties of the Escrow Agent under this Agreement shall be issued by any other parties hereto, or on such party’s behalf, without the prior written consent of Escrow Agent. 

  

	20.	The headings contained in this Agreement are for convenience of reference only and shall have no effect on the interpretation or operation hereof. 

  

	21.	This Escrow Agreement may be executed by each of the parties hereto in any number of counterparts, each of which counterpart, when so executed and delivered, shall be deemed to be
an original and all such counterparts shall together constitute one and the same agreement. 

  

	22.	 The Escrow Agent does not have any interest in the Escrowed Property deposited hereunder but is serving as escrow holder only and having only possession thereof.
TMY shall pay or reimburse the Escrow Agent upon request for any transfer taxes or other taxes relating to the Escrowed Property incurred in connection herewith and shall indemnify and hold harmless the Escrow Agent any amounts that it is obligated
to pay in the way of such taxes. Any payments of income from this Escrow Account shall be subject to withholding regulations then in force with respect to United States taxes. The parties hereto will provide the Escrow Agent, upon request, with
appropriate W-9 forms for tax I.D., number certifications, or W-8 forms for non-resident alien certifications. It is understood that the Escrow Agent shall be responsible for income reporting only with respect to income earned on investment of funds
which are a part of the Escrowed 

	 	 
Property and is not responsible for any other reporting. This paragraph and paragraph (9) shall survive notwithstanding any termination of this Escrow
Agreement or the resignation of the Escrow Agent. 

 IN WITNESS WHEREOF, each of the parties has caused this Escrow
Agreement to be executed by a duly authorized officer as of the day and year first written above. 
  

											
	 Transmeridian Exploration Incorporated
	 		 	Jefferies & Company, Inc., as Placement Agent
						
	By:	 		 	 /s/ Earl W. McNiel
	 		 	By:	 	 /s/ Jonathan Cunningham

	Name:	 		 	Earl W. McNiel	 		 	Name:	 	Jonathan Cunningham
	Title:	 		 	Vice President and Chief Financial Officer	 		 	Title:	 	Executive Vice President
		 		 		 		 		 	

													
					
		 		 		 	THE BANK OF NEW YORK, as Escrow Agent	 	
							
		 		 		 	By:	 		 	 /s/ Regina Jones
	 	
		 		 		 	Name:	 		 	Regina Jones	 	
		 		 		 	Title:	 		 	Assistant Treasurer	 	

 Schedule A 
 (See attached) 

 Transmeridian Exploration Incorporated

 Escrow Account 
 Fee Schedule 
 June 12, 2007 
  

 Upon appointment of The Bank of New York (“BNY”) as Escrow Agent, Transmeridian
Exploration Incorporated shall be responsible for the payment of the fees, expenses and charges as set forth in this Fee Schedule. 
 GENERAL FEES 
 ACCEPTANCE FEE—Waived 
 This one time charge is payable at the time of the closing and includes the review and execution of the agreement and all documents submitted in support thereof and establishment of accounts. 
 ANNUAL ADMINISTRATIVE FEE—$6,000 
 An annual fee of $6,000 will
cover the duties and responsibilities related to account administration and servicing, which may include maintenance of accounts on various systems, custody and securities servicing, reporting, etc. This fee is payable in advance for the year and
shall not be prorated. 
 INVESTMENT COMPENSATION 
 With
respect to investments in money market mutual funds for which BNY provides shareholder services BNY (or its affiliates) may also receive and retain additional fees from the mutual funds (or their affiliates) for shareholder services as set forth in
the Authorization and Direction to BNY to Invest Cash Balances in Money Market Mutual Funds. 
 BNY will charge a $25.00 transaction fee for each purchase,
sale, or redemption of securities other than the aforementioned Money Market Mutual Funds. 
 DISBURSEMENT FEE (CHECK OR WIRE) PER TRANSACTION

 A fee of $25.00 will be assessed for each disbursement. 
 COUNSEL FEES 
 If counsel is retained by BNY, a fee covering the fees and expenses of Counsel for its services, including review of governing
documents, communication with members of the closing party (including representatives of the purchaser, investment banker(s), attorney(s) and BNY), attendance at meetings and the closing, and such other services as BNY may deem necessary. The
Counsel fee will be the actual amount of the fees and expenses charged by Counsel and is payable at closing. Should closing not occur, you would still be responsible for payment of Counsel fees and expenses. 
 MISCELLANEOUS FEES 
 The fees for performing extraordinary or other
services not contemplated at the time of the execution of the transaction or not specifically covered elsewhere in this schedule will be commensurate with the service to be provided and will be charged in BNY’s sole discretion. These
extraordinary services may include, but are not limited to: proxy dissemination/tabulation, customized reporting and/or procedures, electronic account access, etc. Counsel, accountants, special agents and others will be charged at the actual amount
of fees and expenses billed. 
 OUT-OF-POCKET EXPENSES 
 Additional out-of-pocket expenses may include, but are not limited to, telephone; facsimile; courier; copying; postage; supplies; expenses of foreign depositaries; and expenses of BNY’s representative(s) and Counsel for attending
special meetings. Fees and expenses of BNY’s representatives and Counsel will be charged at the actual amount of fees and expenses charged and all other expenses will be charged at cost or in an amount equal to 5% of all expenses billed for the
year, in BNY’s discretion, and BNY may charge certain expenses at cost and others on a percentage basis. 

 Terms and Disclosures 
 TERMS OF PROPOSAL 
 Final acceptance of the appointment as escrow agent under the escrow agreement is subject to
approval of authorized officers of BNY and full review and execution of all documentation related hereto. Please note that if this transaction does not close, you will be responsible for paying any expenses incurred, including Counsel fees. We
reserve the right to terminate this offer if we do not enter into final written documents within three months from the date this document is first transmitted to you. Fees may be subject to adjustment during the life of the engagement. 

MISCELLANEOUS 
 The terms of this Fee Schedule shall govern the
matters set forth herein and shall not be superseded or modified by the terms of the escrow agreement. This Fee Schedule shall be governed by the laws of the State of New York without reference to laws governing conflicts. BNY and the undersigned
agree to jurisdiction of the federal and state courts located in the City of New York, State of New York 
 CUSTOMER NOTICE REQUIRED BY THE USA PATRIOT
ACT 
 To help the US government fight the funding of terrorism and money laundering activities, US Federal law requires all financial institutions to
obtain, verify, and record information that identifies each person (whether an individual or organization) for which a relationship is established. 
 What
this means to you: When you establish a relationship with BNY, we will ask you to provide certain information (and documents) that will help us to identify you. We will ask for your organization’s name, physical address, tax identification or
other government registration number and other information that will help us to identify you. We may also ask for a Certificate of Incorporation or similar document or other pertinent identifying documentation for your type of organization.

 We thank you for your assistance. 
  

  

									
	Accepted By:	 		 	For BNY:
					
	 Signature:
	 	  
	 		 		 	  

					
	 Date:
	 	  
	 		 		 	  

					
	 Name:
	 	  
	 		 		 	  

					
	 Title:Release and Settlement Agreement

 Exhibit 10.1 
 RELEASE AND SETTLEMENT AGREEMENT 
 THIS RELEASE AND SETTLEMENT AGREEMENT (the
“Agreement”) is made and entered into as of June 22, 2007 (the “Effective Date”), by and between Kevin J. P. O’Hara (“Executive”) and CBOT Holdings, Inc., a Delaware corporation (the “Company”).

 RECITALS 
 Whereas, Executive and the Company entered into an Employment Agreement dated March 23, 2006 (the “Employment Agreement”); 
 Whereas, Executive and the Company have agreed to the following terms relating to Executive’s resignation as Chief Administrative Officer and Chief Strategy Officer of the Company as of the Effective Date; 
 NOW, THEREFORE, in consideration of the above premises and the following mutual covenants and conditions, the parties agree as follows: 
 1. Resignation and Payments. Executive hereby resigns as an employee and as Chief Administrative Officer and Chief Strategy Officer of the Company
and from all other positions which Executive may hold with the Company or any of its affiliates including any employee benefit plan as of the Effective Date. Executive shall be entitled to the following payments and benefits: 
 (a) Salary and Vacation Payments. Executive shall be paid his annual base salary through the Effective Date in accordance with the
Company’s payroll policy in effect for senior executives. Executive shall be entitled to payment for any accrued, unused vacation in accordance with the Company’s vacation policy. 
 (b) Medical Benefits. Executive is entitled to continue the Company’s health insurance as provided by the Consolidated Omnibus
Budget and Reconciliation Act (COBRA). In the event Executive timely elects COBRA coverage, the Company shall pay the COBRA premiums for a period of 18 months following the Effective Date. 
 (c) Contract Payment. Pursuant to the terms of the Employment Agreement, the Company shall pay to Executive a lump sum payment of
$1,800,000 no later than ten (10) days after the Effective Date. 
 (d) Restricted Stock. The Company acknowledges
that 7,500 shares of restricted common stock of the Company granted to Executive that would otherwise vest in installments of 3,750 shares on May 8, 2008 and 3,750 shares on May 8, 2009, shall become immediately vested as of the Effective
Date. Executive acknowledges that 3,750 shares of restricted common stock of the Company granted to Executive that would otherwise vest on May 8, 2010 shall be forfeited as of the Effective Date. 
 (e) Options. The Company acknowledges that 2,500 shares subject to an option granted to Executive that would otherwise vest in
installments of 1,250 shares on May 8, 2008 and 1,250 shares on May 8, 2009, shall become immediately vested as of 

 
the Effective Date. Executive acknowledges that all other options to purchase common stock of the Company granted to him to the extent not previously vested,
including an option to purchase 1,250 shares of the Company’s common stock which would otherwise vest on May 8, 2010 and an option to purchase 5,000 shares of the Company’s common stock which would otherwise vest in equal installments
on January 2, 2008, January 2, 2009, January 2, 2010, and January 2, 2011, shall be forfeited as of the Effective Date. 
 (f) Retirement Benefits. Executive shall be entitled to receive his account balance under the Company’s Employees’ 401(k) Retirement Plan in accordance with the terms of such plan.  

(g) Expense Reimbursement. Executive represents that prior to the Effective Date he has submitted for reimbursement any business
expenses for which he is entitled to reimbursement. Such business expenses, if any, shall be reimbursed in accordance with the Company’s normal expense reimbursement policies. 
 (h) Professional Fees. Executive shall receive an amount not to exceed $50,000 for reimbursement of attorney fees in connection
with the negotiation and execution of this Agreement and such amount includes any professional fees Executive may otherwise be entitled to under section 3(e) of the Employment Agreement. 
 (i) Other. Except as expressly provided in this Agreement, no other sums (contingent or otherwise) shall be paid to Executive in
respect of his employment by the Company, and any such sums (whether or not owed) are hereby expressly waived by Executive. 
 2. Survival
Obligations of the Parties. The Company acknowledges and agrees that it shall continue to be obligated under the provisions of sections 4(i) and 9 of the Employment Agreement after the Effective Date. Executive acknowledges and agrees that he
shall continue to be obligated under the provisions of sections 5, 6, 7, 8 and 9 of the Employment Agreement after the Effective Date. 
 3.
Return of Company Property. Executive represents that he has returned all Company property, including without limitation, all computers, keys, credit cards, passes, confidential documents or materials and all memoranda, notes, plans, records,
reports, computer files, printouts and software and other documents and materials (and copies thereof) relating to the Company or its subsidiaries or affiliates whether in hard copy, electronic format or otherwise, which is in Executive’s
possession or under his control. 
 4. Tax Withholding and Reporting. The Company shall be entitled to withhold from the benefits and
payments described herein all income and employment taxes it determines to be necessary to satisfy all tax withholding obligations. 
 5.
General Release. As a material inducement to the Company to enter into this Agreement and in consideration of the payments to be made by the Company to Executive in Section 1 above, Executive, with full understanding of the contents and
legal effect of this Agreement and having the right and opportunity to consult with his counsel, on behalf of Executive, his heirs, representatives, executors, and assigns, releases and discharges the 

  

 2 

 
Company, its predecessors, successors, assigns, representatives, affiliates, parent companies, divisions, subsidiaries and all related entities of any kind
or nature, and each of their current, past and future shareholders, officers, directors, supervisors, members, managers, employees, agents, representatives, attorneys, and all related individuals or entities of any kind or nature, their
predecessors, successors, heirs, executors, administrators, and assigns (collectively, the “Released Parties”) from any and all claims, actions, causes of action, grievances, suits, charges, or complaints of any kind or nature whatsoever
including, without limitation, any claims with respect to his Employment Agreement which are not otherwise expressly reserved in this Agreement, that he ever had or now has, whether fixed or contingent, liquidated or unliquidated, known or unknown,
suspected or unsuspected, and whether arising in tort, contract, statute, or equity, before any federal, state, local, or private court, agency, arbitrator, mediator, or other entity, regardless of the relief or remedy. Without limiting the
generality of the foregoing, it being the intention of the parties to make this release as broad and as general as the law permits, this release specifically includes any and all subject matter and claims arising from any alleged violation by the
Released Parties under the Fair Labor Standards Act; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1866, as amended by the Civil Rights Act of 1991 (42 U.S.C. § 1981 through 1988); the Rehabilitation Act of
1973, as amended; the Employee Retirement Income Security Act of 1974, as amended; the Sarbanes-Oxley Act, the Occupational Safety and Health Act, the Immigration Reform and Control Act, the Illinois Wage Payment and Collection Act; the Illinois
Human Rights Act, the Cook County Human Rights Ordinance, the Chicago Human Rights Ordinance, and other similar state or local laws; the Americans with Disabilities Act; the Family and Medical Leave Act; the Workers Adjustment and Retraining
Notification Act; the Equal Pay Act; Executive Order 11246; Executive Order 11141; and any other local, state or federal law, rule, regulation or ordinance, as well as any claim based on public policy, contract or implied contract (including, but
not limited to, any claims arising under the Employment Agreement), any claim based on tort or otherwise under common law (including but not limited to, any claim for wrongful discharge, breach of an implied covenant of good faith and fair dealing,
defamation, or invasion of privacy) arising out of or involving Executive’s employment with the Company, the termination of his employment with the Company, or involving any continuing effects of his employment with the Company or termination
of employment with the Company, or arising out of or involving any interaction with any of the Released Parties. Executive further acknowledges that he is aware that statutes exist that render null and void releases and discharges of any claims,
rights, demands, liabilities, action and causes of action which are unknown to the releasing or discharging party at the time of execution of the release and discharge. Executive hereby expressly waives, surrenders and agrees to forego any
protection to which he would otherwise be entitled by virtue of the existence of any such statute in any jurisdiction including, but not limited to, the State of Illinois. Notwithstanding any other provision of the Agreement to the contrary, the
release under this Section 5 shall not apply to any claim arising from any breach of this Agreement by the Company or any failure by the Company to comply with any or all of the provisions of this Agreement or from any rights or claims that may
arise after the date this Agreement is executed by Executive. 
 Executive acknowledges and agrees that he has read this release in its
entirety and that this release is a general release of all known and unknown claims. Executive and the Company further acknowledge and agree that: 
  

	 	i.	This Agreement contains a general release of all known and unknown claims; 

  

 3 

	 	ii.	This release does not release, waive or discharge any rights or claims that may arise for actions or omissions after the date of this Agreement; 

  

	 	iii.	Executive has been advised, and is being advised by this release, to consult with an attorney before executing this Agreement; 

  

	 	iv.	Executive has been given ample time in which to consider whether to enter into this Agreement; and 

  

	 	v.	This Agreement, including the release, is written in terms that are understandable to the Executive, and Executive enters into this Agreement knowingly and voluntarily, with a full
understanding of the consequences of this Agreement. 

 6. Release of Executive. In consideration of Executive’s
entering into this Agreement, the Company, for itself and its affiliates and their respective predecessors, successors and assigns hereby releases and forever discharges Executive and his heirs, personal representatives, successors and assigns from
and against any and all claims, demands, damages, actions, causes of action, costs and expenses, of whatever kind or nature, in law, equity or otherwise, which the Company or any of said entities now has, may ever have had or may have hereafter upon
or by reason of any matter, cause or thing occurring, done or omitted to be done prior to the date of this Agreement, relating to or arising out of Executive’s status as an officer, director or employee of the Company or any of said entities or
the termination of that status or involving any matter occurring from the beginning of Executives’ employment with the Company and its affiliates to the date of these presents, or involving any continuing effects of any actions or practices
which may have arisen or occurred from the beginning of such employment to the date of these presents; provided, however, that this release shall not apply to any claims the Company or any of said entities or parties may have which arise out of or
relate to the provisions of Sections 5, 6, and 7 of Executive’s Employment Agreement; provided, further, that this release shall not apply to any claims the Company or any of said entities or parties may have which arise out of or relate to the
conviction of Executive for the commission of a felony involving dishonesty with respect to the Company or any of said entities or parties. 
 7. Nondisparagement. Executive agrees that he shall not make any public statements, encourage others to make statements or release information intended to disparage or defame the Company or any of its respective directors, officers
or advisors (and each such director, officer and advisor is a third party beneficiary of such agreement). The Company shall direct its officers and directors not to make statements, encourage others to make statements, or release information
intended to disparage or defame Executive’s reputation. Notwithstanding the foregoing, nothing in this Section 7 shall prohibit any person from making truthful statements when required by order of a court or other body having jurisdiction.
Except with the prior written consent of the Company, Executive will not make any direct or indirect written or oral statements to the press, television, radio or other media concerning any matters pertaining to the business and affairs of the
Company, or any of its affiliates, or any of their officers, directors or advisors in their capacities as such, or any entity with which the Company has entered into, is contemplating entering into or has contemplated entering into a material
transaction, or pertaining to any matters related to Executive’s employment or termination of employment with the Company. 
  

 4 

 8. Joint Participation. The parties hereto participated jointly in the negotiation and preparation
of this Agreement, and each party has had the opportunity to obtain the advice of legal counsel and to review and comment upon the Agreement. Accordingly, it is agreed that no rule of construction shall apply against any party or in favor of any
party. This Agreement shall be construed as if the parties jointly prepared this Agreement, and any uncertainty or ambiguity shall not be interpreted against one party and in favor of the other. 
 9. Notices. All notices, requests, demands or other communications under this Agreement shall be given in accordance with section 12 of the
Employment Agreement. 
 10. Governing Law. This Agreement, and the rights and obligations of the parties hereto, shall be governed by
and construed in accordance with the laws of the State of Illinois, without regard to principles of the conflicts of laws. If any provision hereof is unenforceable, such provision shall be fully severable, and this Agreement shall be construed and
enforced as if such unenforceable provision had never comprised a part hereof, the remaining provisions hereof shall remain in full force and effect, and the court construing the Agreement shall add as a part hereof a provision as similar in terms
and effect to such unenforceable provision as may be enforceable, in lieu of the unenforceable provision. 
 11. Waiver of Breach. The
waiver by Executive or the Company of a breach of any provision of this Agreement shall not operate as or be deemed a waiver of any subsequent breach by Executive or the Company. 
 12. Counterparts. This Agreement may be executed in more than one counterpart, but all of which together will constitute one and the same
agreement. This Agreement may be executed by facsimile signature and each party may fully rely upon facsimile execution; this Agreement shall be fully enforceable against a party which has executed the Agreement by facsimile. 
 13. Amendments. This Agreement may be amended or canceled only by mutual agreement of the parties in writing without the consent of any other
person. 
 * * * * 
  

 5 

 IN WITNESS WHEREOF, Executive has hereunto set his hand and the Company has caused this Agreement to be
executed by its duly authorized representative, all as of the date first above written. 
  

			
	EXECUTIVE:
	
	 /s/ Kevin J.P. O’Hara

	Kevin J. P. O’Hara
	
	CBOT HOLDINGS, INC.
		
	By	 	 /s/ Bernard W. Dan

		 	Its President and Chief Executive Officer

  

 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]