Document:

ex10-2.htm

    
      
        

      

    

    Exhibit
10.2

     

    FIRST AMENDMENT
TO

    SENIOR SECURED TERM LOAN
AGREEMENT

     

    THIS FIRST AMENDMENT TO SENIOR
SECURED TERM LOAN AGREEMENT (this “Amendment”) made as of the 10th day of
November, 2008 (the “Effective Date”), by and among AMERICAN CAMPUS COMMUNITIES OPERATING
PARTNERSHIP LP, a Maryland limited partnership (“Borrower”), AMERICAN CAMPUS COMMUNITIES,
INC., a Maryland corporation (“Parent Guarantor”), THE OTHER ENTITIES LISTED ON THE
SIGNATURE PAGES HEREOF AS GUARANTORS (the “Subsidiary Guarantors”; the
Parent Guarantor and the Subsidiary Guarantors are hereinafter referred to
collectively as the “Guarantors”), KEYBANK NATIONAL ASSOCIATION,
a national banking association (“KeyBank”), THE OTHER LENDERS WHICH ARE
SIGNATORIES HERETO (KeyBank and the other lenders which are signatories
hereto, collectively, the “Lenders”), and KEYBANK NATIONAL ASSOCIATION,
a national banking association, as Administrative Agent (the “Administrative
Agent”) for the Lenders.

     

    W
I T N E S S E T H:

     

    WHEREAS, Borrower, Guarantors,
Administrative Agent and the Lenders then parties thereto entered into that
certain Senior Secured Term Loan Agreement dated as of May 23, 2008 (as amended,
amended and restated, supplemented or otherwise modified from time to time, the
“Loan Agreement”); and

     

    WHEREAS, Borrower has further
requested that the Administrative Agent and the Lenders amend the covenant in
Section 5.02(g) of the Loan Agreement to allow the aggregate amount of Cash
dividends or distributions to exceed 100% of Funds From Operations;
and

     

    WHEREAS, the Administrative
Agent and the Lenders have agreed to amend the Loan Agreement subject to the
execution and delivery by Borrower and Guarantors of this
Amendment.

     

    NOW, THEREFORE, for and in
consideration of the sum of TEN and NO/100 DOLLARS ($10.00), and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto do hereby covenant and agree as
follows:

     

    1.           Definitions. All the
terms used herein which are not otherwise defined herein shall have the meanings
set forth in the Loan Agreement.

     

    2.           Modification of the Loan
Agreement. Borrower, the Lenders and Administrative Agent do hereby
modify and amend the Loan Agreement as follows:

     

     
(a)          By
deleting subsection (i) of Section 5.02(g) of the Loan Agreement in its entirety
and inserting in lieu thereof the following:  “(i) no Default or Event
of Default shall have occurred and be continuing at the time of declaration or
payment thereof and the aggregate amount of such Cash dividends or
distributions, together with the aggregate amount of Cash dividends or
distributions made during the applicable period pursuant to the immediately
following clause (ii), (A) do not exceed 115% of Funds From Operations for the
current four fiscal quarter periods of Parent Guarantor ending September 30,
2008 and December 31, 2008, (B) do not exceed 110% of Funds From Operations for
the current four fiscal quarter period of Parent Guarantor ending March 31,
2009, (C) do not exceed 100% of Funds from Operations during any other four
consecutive fiscal quarters of the Parent Guarantor thereafter, and (D) do not
exceed 100% of Funds From Operations during any one fiscal quarter for the
fiscal quarters of the Parent Guarantor ending on December 31, 2008 and March
31, 2009,”

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3.           References to Loan
Agreement. All references in the Loan Documents to the Loan Agreement
shall be deemed a reference to the Loan Agreement, as modified and amended
herein.

     

    4.           Acknowledgment of Borrower
and Guarantors. Borrower and Guarantors hereby acknowledge, represent and
agree that the Loan Documents, as modified and amended herein or in any other
documents delivered in connection herewith, remain in full force and effect and
constitute the valid and legally binding obligation of Borrower and Guarantors,
as applicable, enforceable against Borrower and Guarantors in accordance with
their respective terms, and that the execution and delivery of this Amendment
and any other documents in connection therewith do not constitute, and shall not
be deemed to constitute, a release, waiver or satisfaction of Borrower’s or
Guarantors’ obligations under the Loan Documents.

     

    5.           Representations and
Warranties. Borrower and Guarantors represent and warrant to
Administrative Agent and the Lenders as follows:

     

     
(a)           Authorization. The
execution, delivery and performance of this Amendment and the transactions
contemplated hereby (i) are within the authority of Borrower and Guarantors,
(ii) have been duly authorized by all necessary proceedings on the part of the
Borrower and Guarantors, (iii) do not and will not conflict with or result in
any breach or contravention of any provision of law, statute, rule or regulation
to which the Borrower or any of the Guarantors is subject or any judgment,
order, writ, injunction, license or permit applicable to the Borrower or any of
the Guarantors, (iv) do not and will not conflict with or constitute a default
(whether with the passage of time or the giving of notice, or both) under any
provision of the partnership agreement or certificate, certificate of formation,
operating agreement, articles of incorporation or other charter documents or
bylaws of, or any mortgage, indenture, agreement, contract or other instrument
binding upon, the Borrower or any of the Guarantors or any of their respective
properties or to which the Borrower or any of the Guarantors is subject, and
(v) do not and will not result in or require the imposition of any lien or
other encumbrance on any of the properties, assets or rights of the Borrower or
any of the Guarantors, other than the liens and encumbrances created by the Loan
Documents.

     

      (b)           Enforceability. The
execution and delivery of this Amendment are valid and legally binding
obligations of Borrower and Guarantors enforceable in accordance with the
respective terms and provisions hereof, except as enforceability is limited by
bankruptcy, insolvency, reorganization, moratorium or other laws relating to or
affecting generally the enforcement of creditors’ rights and the effect of
general principles of equity.

     

     
(c)           Approvals. The
execution, delivery and performance of this Amendment and the transactions
contemplated hereby do not require the approval or consent of any Person or the
authorization, consent, approval of or any license or permit issued by, or any
filing or registration with, or the giving of any notice to, any court,
department, board, commission or other governmental agency or authority other
than those already obtained.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

            
(d)           Reaffirmation.
Borrower and Guarantors reaffirm and restate as of the date hereof each and
every representation and warranty made by the Borrower, the Guarantors and their
respective Subsidiaries in the Loan Documents or otherwise made by or on behalf
of such Persons in connection therewith except for representations or warranties
that expressly relate to an earlier date.

     

    6.           Modification
Fee.  The Borrower shall pay a modification fee (the “Modification
Fee”) in the amount of $10,000.00 on the Effective Date of this Amendment to
each Lender that has approved this Amendment as of the Effective Date hereof by
executing the applicable signature page attached hereto.

     

    7.           No Default. By
execution hereof, the Borrower and Guarantors certify that Borrower and each of
the Guarantors is and will be in compliance with all covenants under the Loan
Documents after the execution and delivery of this Amendment, and that no
Default or Event of Default has occurred and is continuing.

     

    8.           Waiver of Claims.
Borrower and Guarantors acknowledge, represent and agree that none of such
Persons has any defenses, setoffs, claims, counterclaims or causes of action of
any kind or nature whatsoever with respect to the Loan Documents, the
administration or funding of the Loan or with respect to any acts or omissions
of Administrative Agent or any Lender Party, or any past or present officers,
agents or employees of Administrative Agent or any Lender Party, and each of
such Persons does hereby expressly waive, release and relinquish any and all
such defenses, setoffs, claims, counterclaims and causes of action, if
any.

     

    9.           Ratification. Except
as hereinabove set forth, all terms, covenants and provisions of the Loan
Agreement remain unaltered and in full force and effect, and the parties hereto
do hereby expressly ratify and confirm the Loan Documents as modified and
amended herein. Nothing in this Amendment or any other document delivered in
connection herewith shall be deemed or construed to constitute, and there has
not otherwise occurred, a novation, cancellation, satisfaction, release,
extinguishment or substitution of the indebtedness evidenced by the Notes or the
other obligations of Borrower and Guarantors under the Loan
Documents.

     

    10.         Effective Date. This
Amendment shall be deemed effective and in full force and effect as of the
Effective Date upon (a) the execution and delivery of this Amendment by
Borrower, Guarantors, Administrative Agent and the Required Lenders and (b) and
the payment of the Modification Fee to each Lender that has executed this
Amendment as of the Effective Date. The Borrower will pay the reasonable fees
and expenses of Administrative Agent in connection with this
Amendment.

     

    11.         Amendment as Loan
Document. This Amendment shall constitute a Loan Document.

     

    12.         Counterparts. This
Amendment may be executed in any number of counterparts which shall together
constitute but one and the same agreement.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    13.         MISCELLANEOUS. THIS
AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL
LAWS OF THE STATE OF NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES. This Amendment shall be binding upon and shall
inure to the benefit of the parties hereto and their respective permitted
successors, successors-in-title and assigns as provided in the Loan
Agreement.

     

    [Remainder
of Page Intentionally Left Blank]

     

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        4

        
          

        

      

      
        
        

      

    

    

     IN WITNESS WHEREOF, the
parties hereto have hereto set their hands and affixed their seals as of the day
and year first above written.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	 
      	
                                        BORROWER:

                                      	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                        AMERICAN
      CAMPUS COMMUNITIES

                                        OPERATING PARTNERSHIP LP,
      a

                                        Maryland
      limited partnership

                                      	 
	 
      	 
      	 
      	 
	 
      	
                                        By:

                                      	AMERICAN
      CAMPUS COMMUNITIES
HOLDINGS
      LLC, a Maryland limited liability
      company, its general partner	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                         

                                      	
                                        By:

                                      	
                                        AMERICAN
      CAMPUS

                                        COMMUNITIES,
      INC., a Maryland

                                        corporation,
      its sole member

                                      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
                                        By:

                                      	 
      	 
	 
      	 
      	 
      	
                                        Name:

                                      	 
      	 
	 
      	 
      	 
      	
                                        Title:

                                      	 
      	 

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

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          5

          
            

          

        

        
          
          

        

      

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  	 
      	
                                                          GUARANTORS:

                                                        	 
      
	 
      	 
      	 
      	 
      
	 
      	
                                                          AMERICAN CAMPUS COMMUNITIES,
      INC.,

                                                          a
      Maryland corporation

                                                        
	 
      	 
      	 
      	 
      
	 
      	
                                                          By:

                                                        	 
      	 
      
	 
      	
                                                          Name:

                                                        	 
      	 
      
	 
      	
                                                          Title:

                                                        	 
      	 
      
	 	 	 	 
	 
      	
                                                          ACC (AGGIE STATION) GP
      LLC, a Delaware

                                                          limited
      liability company

                                                        
	 
      	 
      	 
      	 
      
	 
      	
                                                          By:

                                                        	 
      	 
      
	 
      	
                                                          Name:

                                                        	 
      	 
      
	 
      	
                                                          Title:

                                                        	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                                                          ACC OP (CITYPARC) GP
      LLC, a Delaware

                                                          limited
      liability company

                                                        
	 
      	 
      	 
      	 
      
	 
      	
                                                          By:

                                                        	 
      	 
      
	 
      	
                                                          Name:

                                                        	 
      	 
      
	 
      	
                                                          Title:

                                                        	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                                                          ACC (OUTPOST SAN ANTONIO) GP
      LLC, a

                                                          Delaware
      limited liability company

                                                        
	 
      	 
      	 
      	 
      
	 
      	
                                                          By:

                                                        	 
      	 
      
	 
      	
                                                          Name:

                                                        	 
      	 
      
	 
      	
                                                          Title:

                                                        	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	
                                                          ACC COMMUNITIES, INC., a
      Delaware

                                                          corporation,
      successor-by-merger to GMH

                                                          Communities
      Trust, a Maryland real estate

                                                          investment
      trust

                                                        
	 
      	 
      	 
      	 
      
	 
      	
                                                          By:

                                                        	 
      	 
      
	 
      	
                                                          Name:

                                                        	 
      	 
      
	 
      	
                                                          Title:

                                                        	 
      	 
      

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

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          6

          
            

          

        

        
          
          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        	 
      	 
      	
                                                                GMH COMMUNITIES, GP
      TRUST, a Delaware

                                                                statutory
      trust

                                                              	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                By:

                                                              	 
      	 
	 
      	 
      	
                                                                Name:

                                                              	 
      	 
	 
      	 
      	
                                                                Title:

                                                              	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                WOODHAVEN
      CIRCLE ASSOCIATES

                                                                INTERMEDIATE II, LLC, a
      Delaware limited

                                                                liability
      company

                                                              	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                By:

                                                              	
                                                                College
      Park Investments, LLC, a Delaware

                                                                limited
      liability company its sole member

                                                              	 
	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
                                                                By:

                                                              	 
      	 
	 
      	 
      	 
      	
                                                                Name:

                                                              	 
      	 
	 
      	 
      	 
      	
                                                                Title:

                                                              	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                GMH COMMUNITIES, LP, a
      Delaware limited

                                                                partnership

                                                              	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                By:

                                                              	
                                                                GMH
      Communities GP Trust, a Delaware

                                                                statutory
      trust, its general partner

                                                              	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
                                                                By:

                                                              	 
      	 
	 
      	 
      	 
      	
                                                                Name:

                                                              	 
      	 
	 
      	 
      	 
      	
                                                                Title:

                                                              	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                COLLEGE PARK INVESTMENTS
      LLC, a

                                                                Delaware
      limited liability company

                                                              	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                By:

                                                              	 
      	 
	 
      	 
      	
                                                                Name:

                                                              	 
      	 
	 
      	 
      	
                                                                Title:

                                                              	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                RENO ASSOCIATES INTERMEDIATE,
      LLC, a Delaware limited liability company

                                                              	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                                By:

                                                              	
                                                                College
      Park Investments LLC, a Delaware limited liability company, its sole
      member

                                                              	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	 
      	
                                                                By:

                                                              	 
      	 
	 
      	 
      	 
      	
                                                                Name:

                                                              	 
      	 
	 
      	 
      	 
      	
                                                                Title:

                                                              	 
      	 

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

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                                                  ACC
      OP-ROYAL TUCSON ENTRADA REAL

                                                  1, LLC, a Delaware
      limited liability company

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  ACC
      OP Royal Tucson Entrada Real 3,

                                                  LLC,
      a Delaware limited liability company,
its
      sole member

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  American
      Campus Communities Operating
Partnership
      LP, a Maryland limited
partnership,
      its sole member

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  American
      Campus Communities Holdings
LLC,
      a Maryland limited liability company,
its
      general partner

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  American
      Campus Communities, Inc., a

                                                  Maryland
      corporation, its sole member

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                   

                                                	
                                                  By:

                                                	 
      	 
	 
      	
                                                   

                                                	
                                                  Name:

                                                	 
      	 
	 
      	
                                                   

                                                	
                                                  Title:

                                                	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  ACC
      OP-ROYAL TUCSON ENTRADA REAL
3, LLC, a Delaware
      limited liability company

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  American
      Campus Communities Operating
Partnership LP, a Maryland limited
      partnership, its
sole member

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  American
      Campus Communities Holdings LLC, a
Maryland limited liability company,
      its general
partner

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                                                  By:

                                                	
                                                  American
      Campus Communities, Inc., a Maryland corporation, its sole
      member

                                                	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	 
      	
                                                  By:

                                                	
                                                   

                                                	 
	 
      	 
      	
                                                  Name:

                                                	
                                                   

                                                	 
	 
      	 
      	
                                                  Title:

                                                	
                                                   

                                                	 

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

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      	RAP STUDENT HOUSING PROPERTIES
      LLC, 
a
      Delaware limited liability company
	 
      	 
      	 
      
	 
      	
                                                                                                      By:

                                                                                                    	 	 
      
	 
      	
                                                                                                      Name:

                                                                                                    	 	 
      
	 
      	
                                                                                                      Title:

                                                                                                    	 	 
      
	 
      	 
      	 
      
	 
      	RFG
      CAPITAL MANAGEMENT PARTNERS,
L.P., a Delaware limited
      partnership
	 
      	 
      	 
      
	 
      	
                                                                                                      By:

                                                                                                    	
                                                                                                      RAP
      Student Housing Properties LLC, a

                                                                                                      Delaware
      limited liability company, its

                                                                                                      general
      partner

                                                                                                    
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                                                                                                      By:

                                                                                                    	 	
                                                                                                       

                                                                                                    
	 
      	 
      	
                                                                                                      Name:

                                                                                                    	 	
                                                                                                       

                                                                                                    
	 
      	 
      	
                                                                                                      Title:

                                                                                                    	 	
                                                                                                       

                                                                                                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                                                                                      RFG-CMP
      THE VILLAGE AT

                                                                                                      BLACKSBURG, LLC, a
      Delaware limited

                                                                                                      liability
      company

                                                                                                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                                                                                      By:

                                                                                                    	
                                                                                                      RFG
      Capital Management Partners, L.P., a

                                                                                                      Delaware
      limited partnership, its sole

                                                                                                      member

                                                                                                    
	 
      	 
      	 
      	 
      	 
      
	 
      	
                                                                                                      By:

                                                                                                    	
                                                                                                      RAP
      Student Housing Properties LLC, a

                                                                                                      Delaware
      limited liability company, its

                                                                                                      general
      partner

                                                                                                    
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	By:	 	
                                                                                                       

                                                                                                    
	 
      	 
      	
                                                                                                      Name:

                                                                                                    	 	
                                                                                                       

                                                                                                    
	 
      	 
      	
                                                                                                      Title:

                                                                                                    	 	
                                                                                                       

                                                                                                    

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

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                                                    LENDERS:

                                                  	 
	 
      	 
      	 
	 
      	
                                                    KEYBANK NATIONAL
      ASSOCIATION,

                                                    individually
      as a Lender and as Administrative Agent,

                                                    Swing
      Line Bank and Issuing Bank

                                                  	 
	 
      	 
      	 
	 
      	
                                                    By:

                                                  	 
      	 
	 
      	
                                                    Name:

                                                  	 
      	 
	 
      	
                                                    Title:

                                                  	 
      	 
	 
      	 
      	 
	 
      	
                                                    BANK
      OF AMERICA, N.A.

                                                  	 
	 
      	 
      	 
	 
      	
                                                    By:

                                                  	 
      	 
	 
      	
                                                    Name:

                                                  	 
      	 
	 
      	
                                                    Title:

                                                  	 
      	 
	 
      	 
      	 
	 
      	
                                                    By:

                                                  	 
      	 
	 
      	
                                                    Name:

                                                  	 
      	 
	 
      	
                                                    Title:

                                                  	 
      	 
	 
      	 
      	 
	 
      	
                                                    MERRILL
      LYNCH BANK USA

                                                  	 
	 
      	 
      	 
	 
      	
                                                    By:

                                                  	 
      	 
	 
      	
                                                    Name:

                                                  	 
      	 
	 
      	
                                                    Title:

                                                  	 
      	 
	 
      	 
      	 
	 
      	
                                                    RBS
      CITIZENS, N.A., D/B/A CHARTER ONE

                                                    BANK

                                                  	 
	 
      	 
      	 
	 
      	
                                                    By:

                                                  	 
      	 
	 
      	
                                                    Name:

                                                  	 
      	 
	 
      	
                                                    Title:

                                                  	 
      	 

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    
      	
            	 
      	 
	 
      	
              AIB
      DEBT MANAGEMENT, LIMITED

               

            	 
	 
      	 
      	 
	 
      	
              By:

            	 
      	 
	 
      	
              Name:

            	 
      	 
	 
      	
              Title:

            	 
      	 

    

     

     

    11Sale and Purchase Agreement

 Exhibit 10.1 
  
  
 DATED 23rd September 2008 
 As Amended and Restated on 23rd October 2008 
  
  
 ATP
OIL & GAS (UK) LIMITED 
 and 
 EDF PRODUCTION UK LTD 
  
  
  
  
 SALE AND
PURCHASE AGREEMENT 
 in respect of certain interests under 
 United Kingdom Continental Shelf Petroleum Production Licence No. P.683 (Block 43/22a) 
 and 
 United Kingdom Continental Shelf Petroleum Production Licence No. P.1034 (Blocks 42/25a and 43/21a) 

and 
 United Kingdom Continental
Shelf Petroleum Production Licence No. P.033 (Block 49/12aN) 

 CONTENTS 
  

			
	Clause	  	Heading
		
	1.	  	DEFINITIONS AND INTERPRETATION
		
	2.	  	SALE AND PURCHASE OF THE INTERESTS
		
	3.	  	CONSIDERATION
		
	4.	  	INTERIM PERIOD
		
	5.	  	COMPLETION
		
	6.	  	INDEMNITIES
		
	7.	  	REPRESENTATIONS AND WARRANTIES
		
	8.	  	ONGOING OBLIGATIONS AND LIABILITIES
		
	9.	  	ANNOUNCEMENTS AND CONFIDENTIALITY
		
	10.	  	NOTICES
		
	11.	  	COSTS AND EXPENSES
		
	12.	  	TAXATION
		
	13.	  	VARIATION
		
	14.	  	ASSIGNMENT
		
	15.	  	RIGHTS OF THIRD PARTIES
		
	16.	  	GENERAL
		
	17.      	  	GOVERNING LAW AND ARBITRATION

  
 SCHEDULE 1 
 Licence(s), related Licensed Interest Documents and other related information 
 SCHEDULE 2 
 Allocation of Consideration 
 SCHEDULE 3

 Working Capital 
 SCHEDULE 4 
 Format for Interim Completion Statement and Final Completion Statement 
 SCHEDULE 5 
 AFEs 
  

 2 

 THIS AGREEMENT is made the 23rd day of September 2008 
 and amended and restated on the
             day of October 2008 
 BETWEEN 
  

	(1)	ATP OIL & GAS (UK) LIMITED, a company incorporated in England and Wales (company number 3949599 whose registered office is at Victoria House, London Square, Cross
Lanes, Guildford GU1 1UJ (the “Seller”); and 

  

	(2)	EDF PRODUCTION UK LTD, a company incorporated in England and Wales (company number 6683599 whose registered office is at 1 Blake Mews, Kew Gardens, London TW9 3GA (the
“Purchaser”). 

 WHEREAS 
  

	(A)	The Seller wishes to sell and the Purchaser wishes to purchase the Interests; and 

  

	(B)	The Parties wish to set out the terms and conditions upon which the aforesaid sale and purchase shall take place. 

 NOW THEREFORE IT IS HEREBY AGREED as follows: 
  

	1	Definitions and Interpretation 

 In this Agreement
(including the recitals and the Schedules hereto): 
  

	1.1	The following expressions shall, except where the context otherwise requires, have the following respective meanings: 

 “Accruals Basis of Accounting” means that basis of accounting under which costs and benefits are regarded as applicable to the period in
which the liability for the cost is incurred or the right to the benefit arises regardless of when calculated, discovered, invoiced, paid or received; 
 “Adjustments” means any or all (as the context may require) of the Working Capital Adjustment, the Cash Calls Adjustment, the Petroleum Sales Adjustment and the Interim Period Adjustment as calculated
in accordance with Clause 3 and any payments made by the Purchaser to the Seller or by the Seller to the Purchaser pursuant to Clause 6 or Clause 12 or pursuant to a warranty claim under Clause 7 together with such amounts (if any) equivalent to
interest payable in accordance with Clauses 3.15 and 3.16; 
 “Affiliate” means in relation to any Party, a subsidiary or a
holding company of that Party and includes the ultimate holding company of that Party and any subsidiary of that holding company and for the purposes of this 

  

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definition “holding company” and “subsidiary” shall be construed in accordance with section 1159 of the Companies Act 2006; 

“Agreed Rate” means for the London Interbank Offered Rate for one month for the currency in question as quoted in the British
Bankers’ Association internet site (www.bba.org.uk/public/libor) for the first day of the relevant period in respect of which interest is to be calculated plus one percent (1%) provided that if the first day of the relevant period
is not a Business Day then the rate to be used shall be that for the most recent Business Day preceding the first day of the relevant period; 
 “Agreement” means this Agreement including the recitals hereof and Schedules hereto, as the same may be amended or varied from time to time in accordance with its express terms; 
 “Assignment Documents” means the assignment and novation agreements in respect of the Licensed Interest Documents in the agreed form
together with any other documents the Parties (acting reasonably) agree are necessary to effect the assignment and transfer of the Interests from the Seller to the Purchaser and release the Seller from contractual liability to third parties with
respect to the Interests (including any parent company guarantees or letters of credit required of the Purchaser in support of the Purchaser’s obligations under any of the Licensed Interest Documents); 
 “ATP Corporation” means ATP Oil & Gas Corporation incorporated and registered in the State of Texas whose registered office is
at 4600 Post Oak Place, Suite 200, Houston, Texas, 77027, Texas, USA; 
 “ATP Corporation Guarantee” means the guarantee in
the agreed form to be provided by ATP Corporation and to be delivered to the Buyer pursuant to Clause 2.2.2; 
 “Benefits”
has the meaning given in Clause 6.1; 
 “Block” means an offshore area located on the United Kingdom Continental Shelf
(“UKCS”) forming part of a Licence and being separately designated and numbered as a block on the reference map showing all UKCS Licence blocks deposited at the principal office of the UK Department of Business, Enterprise and
Regulatory Reform and “Blocks” means Block 43/22a, Block 42/25a and Block 43/21a, and Block 49/12aN.; 
 “Business
Day” means a day (other than a Saturday, a Sunday or a legal bank or public holiday) on which banks are or, as the context may require, were generally open for business in England; 
 “Cash Calls Adjustment” is detailed in Clause 3.6; 
 “Completion” means the completion of the sale and purchase of the Interests in accordance with the provisions of this Agreement; 
 “Completion Date” means the date on which Completion takes place; 
  

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 “Consequential Loss” has the meaning set out in Clause 7.17; 
 “Consideration” has the meaning set out in Clause 3.1; 
 “CT” means Corporation Tax as charged under the Income and Corporation Taxes Act 1988 (as amended) which for the avoidance of doubt includes the supplementary charge as levied by section 501A of the
Income and Corporation Taxes Act 1988 (as amended); 
 “Data” means, in respect of the Blocks, all data in the possession,
custody or control of the Seller directly and exclusively relating to the Interests in whatever form the same are maintained excluding any data which the Seller may not sell, transfer or otherwise dispose of as a result of confidentiality
obligations by which it is bound or which cannot be provided to the Purchaser because such transfer is prohibited by the agreement under which it is acquired and excluding internal interpretations and documents created for the Seller’s (or its
Affiliates’) own use; 
 “Data Room Documents” means the documents and data relating to the Interests made available
for the Purchaser’s inspection in the data room located at the offices of Scotiawaterous, 33 Finsbury Square, London EC2A 1BB and/or sent to the Purchaser prior to the date hereof as such documents and data are listed in the index initialled by
the Parties for the purposes of identification; 
 “Decommissioning Liabilities” means any and all claims, costs, charges,
expenses, liabilities, duties and/or obligations arising from, under or in respect of the ownership or use of the Interests and/or the Blocks and relating to the decommissioning and/or removing and/or making safe of all of the property held in
connection with the Interests whether such claims, costs, charges, expenses, liabilities, duties and/or obligations are incurred under or pursuant to any of the Licensed Interest Documents or under statutory law, common law or otherwise and
including the reinstatement and/or making good of the area covered by the Licence(s) in accordance with good oil and gas field industry practice and applicable law at the time of such decommissioning and/or removal and any residual liability or
obligation for anticipated and/or necessary continuing insurance, maintenance and monitoring costs regardless in each case of any acts, omissions, negligence or breach of duty (statutory or otherwise), conduct or statements of the Seller or the
condition of the Interests; 
 “Dollars” or “$” means dollars of the United States of America; 
 “Economic Date” means 1st
 July 2008; 
 “EDF International” means EDF International of 20 place de
la Défense, 92050 Paris la Défense, France; 
 “EDF International Guarantee” means the guarantee in the agreed
form to be provided by EDF International and to be delivered to the Seller pursuant to Clause 2.2.2; 
  

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 “Encumbrances” means all liens, charges (fixed or floating), security interests,
pledges, options, net profit interests, rights of pre-emption, mortgages and other third party rights which encumber legal or beneficial ownership save in respect of the rights held by the Secretary under the Licences; 
 “Environment” means the natural and man-made environment including all or any part of the following media namely air, water, and land
including subsurface strata lying beneath the surface of the ground or beneath a body of water, and any living organisms or systems supported by those media; 
 “Environmental Law” means all applicable national and local laws, regulations, directives and ministerial regulations and instructions, all judgments, orders, instructions or awards of any court or
competent authority and all codes of practice, industry agreements and guidance notes which relate or apply to the Environment or matters affecting the Environment including pollution, contamination, emissions, hazardous substances or the creation
of any adverse impact on the Environment; 
 “Environmental Liabilities” means any and all claims, costs, charges, expenses,
liabilities, duties and/or obligations arising from, under or in respect of the ownership or use of the Interests in relation to any Environmental Law or in relation to cleaning up, decontamination of, removing and disposing of debris or any
property from and for reinstating any area of land, foreshore or seabed, wherever situated, whether such claims, costs, charges, expenses, liabilities, duties and/or obligations are incurred under or pursuant to any of the Licensed Interest
Documents or under statutory law, common law or otherwise and including any residual liability or obligation for anticipated and/or necessary continuing insurance, maintenance and monitoring costs regardless in each case of any acts, omissions,
negligence or breach of duty (statutory or otherwise), conduct or statements of the Seller or the condition of the Interests; 
 “Final Completion Statement” has the meaning given in Clause 3.12; 
 “Forward Gas Sales Agreement” means forward Gas sales entered into prior to the Economic Date under the Beach 2000 Master Agreement dated 16th March 2006 between Hess Energy Power and Gas Company (UK) Limited (1) and the Seller (2); 
 “Future Payment Liabilities” means the liability (ies) of the Seller to make future and/or contingent payments to sellers under the terms of the: 
  

	 	 (A)
	 the agreement dated 26th January 2001 between (1) the Seller (2) Britoil Public Limited Company (3) and ATP Corporation, and 

  

	 	 (B)
	 the agreement dated 10th March 2005 between (1) GDF Britain Limited (2) and the Seller; 

  

 6 

 “Gas” or “Natural Gas” means any hydrocarbons or mixture of
hydrocarbons and other gases consisting primarily of methane which at a temperature of fifteen (15) degrees Celsius and at atmospheric pressure are or is predominantly in the gaseous state; 
 “Heren” has the meaning set out in Clause 3.7; 
 “Interests” means: 
  

	 	(a)	an undivided legal interest in the Licence(s); and 

  

	 	(b)	an eighty percent (80%) interest in each of Block 49/12aNand a sixty-eight percent (68%) interest in each of Block 43/22a, Block 42/25a and Block 43/21a);

 together, in each case, with all rights and obligations attaching thereto including for the avoidance of doubt a
corresponding share of the Burdened Interest as defined in the Joint Operating Agreement and including (i) the right to take and receive a consequent share of all Petroleum produced from the Block(s) under the Licence(s) on and after the
Economic Date and (subject to Clause 3.7 and Clause 12) to receive the gross proceeds from the sale or other disposition thereof; (ii) a consequent share of the Seller’s legal and beneficial right, title and interest in and to all property
owned by the Seller pursuant to or under any of the Licensed Interest Documents; and (iii) all rights, liabilities and obligations associated with such interest under the Licensed Interest Documents; 
 “Interim Completion Statement” has the meaning given in Clause 3.10; 
 “Interim Period” means the period from and including the Economic Date up to and including the Completion Date; 
 “Interim Period Adjustment” is detailed in Clause 3.8; 
 “JDA” means the joint development agreement currently in force in respect of operations pursuant to Licence P.1034 (Blocks 42/25a and 43/21a) and P.683 (Block 43/22a) (as detailed in Schedule 1), as
the context so admits, each as amended, supplemented and/or novated from time to time; 
 “Joint Operating Agreement” means
the joint operating agreement currently in force in respect of operations pursuant to Licence P.033 (Block 49/12aN) (as detailed in Schedule 1) as amended, supplemented and/or novated from time to time; 
 “Licence(s)” means the licence(s) of which details are set out in Schedule 1 and, where the context so admits, any one or more of such
licences and any licence issued to the Seller in full or partial substitution for any such licence; 
  

 7 

 “Licensed Interest Documents” means those documents listed as such in Schedule 1 and,
where the context so admits, any one or more of such documents in each case as the same may have been amended, supplemented and/or novated from time to time; 
 “Limited Overriding Royalty Interest” has the meaning set out in the Joint
Operating Agreement and the Deed of Assignment dated 9th August 2006 between ConocoPhillips (U.K.) Limited as assignor and ConocoPhillips
(U.K.) Theta Limited as assignee; 
 “Losses and Expenses” means any and all actions, proceedings, losses, damages,
liabilities, obligations claims, demands, costs and expenses including fines, penalties, clean-up costs, legal and other professional fees and any VAT payable but not recoverable in relation to any such matter, circumstances or item; 
 “New Works” means the coiled tubing work to be conducted on the Wenlock W1 Well, the Pilot Hole at the Wenlock W3 Well and the
connection for W2 Well and W3 Well as more specifically described in the AFEs set out in Schedule 5; 
 “Obligations” has
the meaning given in Clause 6.1; 
 “Operator” means the entity acting as operator under the Licence(s) as currently
identified in Schedule 1; 
 “Party” means a party to this Agreement and “Parties” means both of the
parties to this Agreement; 
 “Petroleum” has the meaning given in the Licence(s); 
 “Petroleum Sales Adjustment” is detailed in Clause 3.7; 
 “Pounds”, “£” or “Sterling” means pounds sterling of the United Kingdom; 
 “Purchase Price” has the meaning given in Clause 3.1; 
 “Purchaser’s Accounts” means such
account(s) as the Purchaser may specify by notice in writing to the Seller not less than five (5) Business Days prior to the due date of any payment; 
 “Secretary” means the Secretary of State for Business, Enterprise and Regulatory Reform or any other person for the time being responsible for carrying out the functions at present carried out by the
Secretary of State for Business, Enterprise and Regulatory Reform in relation to the Licence(s) or operations carried out thereunder; 
 “Secretary’s Consents” means all necessary consents of the Secretary to the transfer of the Interests from the Seller to the Purchaser; 
  

 8 

 “Seller’s Account” means the following account with Barclays Bank plc, of P0 544,
54 Lombard Street, London EC3V 9EX Sort Code 20 - 06 -05, Account No. 50776785 or such other accounts as the Seller may specify by notice in writing not less than five (5) Business Days prior to the due date of any payment;

 “Taxation” means all forms of taxation, duties, levies, imposts, charges, deductions and withholdings, direct or
indirect, created or imposed by any taxing, fiscal or other appropriate authority of the United Kingdom and (without prejudice to the generality of the foregoing) includes: 
  

	 	(a)	CT, VAT and any other forms of taxation, duties, levies, imposts, charges, deductions and withholdings similar to or supplementing or replaced by or replacing the foregoing or any
of them; and 

  

	 	(b)	all penalties, charges, interest, fines, costs and expenses, loss of relief, allowance or credit relating to any form of, or claim for, taxation or other imposition referred to in
paragraph (a); 

 “VAT” means Value Added Tax as charged under the Value Added Tax Act 1994; 
 “Warranties means the representations and warranties given by the Seller to the Purchaser in Clause 7.1; and 
 “Working Capital Adjustment” is detailed in Clause 3.5. 
  

	1.2	All references to Clauses, recitals and Schedules are, unless otherwise expressly stated, references to clauses of and the recitals and schedules to this Agreement.

  

	1.3	The headings are inserted for convenience only and shall be ignored in construing this Agreement. Unless the context otherwise requires, the singular shall include the plural and
vice versa. 

  

	1.4	Unless the context otherwise requires, references to persons shall include natural persons, bodies corporate, unincorporated associations, partnerships, authorities, government and
government bodies. 

  

	1.5	Reference to statutory provisions shall be construed as reference to those provisions as amended, consolidated, extended or re-enacted from time to time. 

 

	1.6	Any document expressed to be “in the agreed form” means a document in a form approved by the Parties (acting reasonably). 

  

	1.7	References to the words “include”, “including” and “other” shall be construed without limitation. 

  

 9 

	2.	Sale and Purchase of the Interests 

  

	2.1   2.1.1  	Subject to the terms of this Agreement the Seller as legal and beneficial owner hereby agrees to sell and transfer the 

 Interests to the Purchaser free from all Encumbrances save for the Limited Overriding Royalty Interest pursuant to and as defined in the Joint Operating
Agreement for the Consideration and the Purchaser hereby agrees to purchase and acquire the Interests from the Seller. 
  

	 	2.1.2	The transfer referred to in Clause 2.1.1 shall, as between the Parties, be deemed for all purposes to be made with effect on and from the Economic Date. 

  

	 	2.1.3	The Parties agree to co-operate in complying with the provisions of the Limited Overriding Royalty Interest and for such purpose they agree that the entitlement of ConocoPhillips
(U.K.) Theta Limited (“Conoco”) to Natural Gas pursuant to the Limited Overriding Royalty Interest and the costs, charges, expenses, liabilities and obligations arising from such entitlement shall be borne as to 80% by the Purchaser and as
to 20% by the Seller for so long as Conoco has the benefit of the Limited Overriding Royalty Interest. 

  

	2.2	The obligations of the Parties to complete the sale and purchase of the Interests under this Agreement is conditional on: 

  

	 	2.2.1	the receipt of all necessary written consents, approvals or waivers as the case may be in relation to the transfer by the Seller to the Purchaser of the Interests, including the
Secretary’s Consents and any consents, approvals and/or waivers required under the Licence Interest Documents, in form and substance reasonably acceptable to the Seller and the Purchaser; 

  

	 	2.2.2	the approval of the Board of Directors of each of the Seller and the Purchaser and each of ATP Oil & Gas Corporation, EDF SA and EDF International to the transactions
contemplated herein; and 

  

	 	2.2.3	execution of the Assignment Documents by the signatory parties thereto other than the Parties. 

 It is expressly acknowledged and agreed by the Purchaser that the obligations of the Parties to complete the sale and purchase of the Interests under
this Agreement is not conditional on the Purchaser seeking or obtaining finance. The Parties shall notify each other promptly of the decision taken pursuant to Clause 2.2.2 by their respective Boards of Directors and the Boards of Directors of their
Affiliates and in the event of and upon notification having been received that all such Boards have approved the sale and purchase of the Interests and accordingly that such condition has been satisfied: 
 (i) the Buyer shall request the execution and delivery of the EDF International Guarantee (and upon receipt of an executed copy) execute and deliver the
ATP Corporation Guarantee; and 
 (ii) the Seller shall request the execution and delivery of the ATP Corporation Guarantee (and upon
receipt of an executed copy) execute and deliver the EDF International Guarantee. 
  

 10 

 so that the Buyer shall deliver to the Seller the EDF International Guarantee (duly executed by EDF
International) and the Seller shall deliver to the Buyer the ATP Corporation Guarantee (duly executed by ATP Oil & Gas Corporation) within five (5) Business Days of satisfaction of such condition, and in the event of failure so to
deliver the Party who has not received the relevant guarantee shall be entitled to terminate this Agreement which shall cease to have effect and the Parties shall be freed and discharged from all liability, save only for the continuing obligations
under Clause 9. 
  

	2.3	The Parties shall each use reasonable endeavours to obtain fulfilment of the conditions set out: 

 (a) in Clause 2.2.2 by 31st October 2008 and 
 (b) in Clauses 2.2.1 and 2.2.3 by 31st December 2008 (or such later dates as the Parties may agree) provided that it shall be the primary responsibility of the Seller (a) to make the application to the Secretary to obtain the
Secretary’s Consent and (b) to give the required notices in order to obtain the necessary consents, approvals and waivers (as the case may be) to the transfer and assignment of the Interests in order to obtain execution of the Assignment
Documents in accordance with the Licensed Interest Documents. 
  

	 2.4
	 In the event that the conditions set out in Clause 2.2.2 have not all been fulfilled and/or waived by the Parties by
31st October 2008, (or such later date as may be agreed as aforesaid), and/or in the event that the conditions set out in Clauses 2.2.1 and 2.2.3 have not all been fulfilled and/or waived by the Parties by 31st December 2008 (or such later date as may be agreed as aforesaid), then in either of such events any Party shall be entitled, to terminate this Agreement within five
(5) Business Days following the date upon which the relevant conditions should have been fulfilled and/or waived by the Parties as aforesaid by written notice to the other Party and upon receipt of any such notice this Agreement shall cease to
have effect and the Parties shall be freed and discharged from all liability, save only for any prior breach of Clause 2.3 (b), any liability under Clause 2.5 and for the continuing obligations under Clause 9. 

  

	2.5	In consideration of the Seller entering into this Agreement, if Completion does not occur as a result of the Purchaser’s failure to meet its obligations under Clause 2.3
(b) or to carry out any of its obligations at Completion under this Agreement including payment of the Purchase Price to the Seller on the Completion Date then, in addition to any other obligation or liability pursuant to this Agreement, the
Purchaser shall forthwith pay to the Seller the aggregate sum of five percent (5 %) of the Purchase Price, as compensation for any loss suffered by the Seller in entering into this Agreement and the risk undertaken by the Seller in so doing. The
Parties acknowledge and agree that such sum is a genuine pre-estimate of loss and is not a penalty. 

  

	3.	Consideration 

  

	3.1	The consideration for the sale and transfer by the Seller to the Purchaser of the Interests shall be the payment by the Purchaser to the Seller of the sum of two hundred and sixty
five million Pounds (£265,000,000) (the “Purchase Price”) as adjusted pursuant to this Agreement (the “Consideration”). 

  

	3.2	Subject to Clause 12, the Consideration shall be allocated as set out in Schedule 2. 

  

 11 

 Adjustments 
  

	3.3	The Purchase Price shall be adjusted by the Adjustments which shall operate by way of increases or decreases, as the case may be, to the Purchase Price provided that no item taken
into account in calculating any one of the Adjustments shall be taken into account in calculating any one of the other Adjustments so as to result in a Party making or receiving payment twice in respect thereof. 

  

	3.4	No adjustment under this Clause 3 shall be made in respect of any matter to which Clause 6.6 applies. 

  

	3.5	The Working Capital Adjustment, which if positive shall increase the Purchase Price and if negative shall reduce the Purchase Price, shall be the aggregate of the working capital
balances in relation to the Interests calculated in respect of each of the categories listed in Schedule 3 as at the Economic Date by reference to the statements provided by the Operator and otherwise in accordance with Schedule 3. Such working
capital balances shall be prepared in accordance with proper accounting and operating procedures and otherwise in accordance with good oil and gas field practice. 

  

	3.6	The Cash Calls Adjustment, which shall increase the Purchase Price, shall be the sum of all cash calls or billing invoices paid in respect of the Interests by the Seller during
and/or in respect of the Interim Period and which, using the Accruals Basis of Accounting, relate to periods beginning on or after the Economic Date pursuant to the Licensed Interest Documents. 

  

	3.7	The Petroleum Sales Adjustment, which shall decrease the Purchase Price, shall be the notional value of the Gas produced in respect of the Interests in each day of the Interim
Period based on multiplying the volume of such Gas by the Market Price for such Gas and for this purpose the Market Price shall be calculated as follows: 

 Market Price = (0.25 x MP) + (0.75 x DP) 
 where: 
 “DP” means the applicable gas index price for Day D expressed in pence per therm based on the arithmetic average of the Day ahead NBP
bid prices and the Day ahead NBP offer prices for Natural Gas (in pence per therm) published by Heren on the preceding Day (D-1). 
 In case
of a following a weekend or a public holiday the arithmetic average of the Day ahead NBP bid prices and the Day ahead NBP offer prices published by Heren on the last Banking Day before the weekend or public holiday shall be used. 
 In the case of a weekend and a public holiday immediately preceding or following a weekend then the arithmetic average of the Heren weekend NBP bid
prices and the weekend NBP offer prices on the preceding Banking Day for that weekend shall be used. 
  

 12 

 In the case of a public holiday mid week the arithmetic average of the special NBP bid prices and special
NBP offer prices for that period published by Heren on the preceding Banking Day shall be used, provided that if no such prices are published then the weekend NBP bid prices and weekend NBP offer prices for that period published by Heren on the
preceding Banking Day shall be used. 
 “Heren” means Heren Energy in European Spot Gas Markets. 
 “MP” means the applicable gas index price for Month M (expressed in pence per therm) based on the arithmetic average of the month- ahead
NBP bid prices and the Month ahead NBP offer prices for Natural Gas (in pence per therm) for Month M as published by Heren for each day of publication in Month M-1 which are then averaged over the number of days in which prices are published.

  

	3.8	The Interim Period Adjustment, which shall increase the Purchase Price, shall be the sum of all expenditure incurred by the Seller, using the Accruals Basis of Accounting, in
respect of the Interests during the Interim Period, including demurrage, brokers’ fees (other than fees of advisers engaged in relation to the matters referred to herein), insurance premia and deductibles, rent and licence fees and all other
costs and expenses incurred by the Seller in respect of the Interests which are in respect of the period on and after the Economic Date and which have not been met by cash calls or other payments taken into account under the foregoing provisions of
this Clause 3 or Clause 12 provided that any such expenditure relating to any period prior to the Economic Date which has not been taken into account in the Working Capital Adjustment shall be for the account of the Seller. 

 

	3.9	Where any sums payable by the Purchaser to the Seller or by the Seller to the Purchaser pursuant to Clauses 3, 6, 7 or 12 are expressed in Sterling, the same shall be paid in
Sterling. 

 Interim Completion Statement and Final Completion Statement 
  

	3.10	The Seller shall provide the Purchaser with a written statement of the Consideration expected to be required as at the Completion Date (the “Interim Completion
Statement”). The Interim Completion Statement shall be provided no later than ten (10) calendar days prior to the anticipated Completion Date and shall be in the form set out in Schedule 4. The Seller may update the same and the
Parties shall endeavour to agree the Interim Completion Statement before Completion, failing which the matter shall be dealt with in accordance with Clauses 3.11 and 3.13. 

  

	3.11	If any of the amounts or portions thereof contained in the Interim Completion Statement have not been agreed prior to Completion, the disputed amounts or portions of the Adjustments
shall be left out of account for the purposes of Clause 5.2.2.1. The undisputed amounts or portions of the Adjustments shall be added to the amount of the Purchase Price and such amount so adjusted shall be payable at Completion. Payment of disputed
amounts or portions thereof shall be made within five (5) Business Days following agreement of the Parties or determination under Clause 3.13. 

  

	3.12	 Within sixty (60) Business Days after Completion, and without prejudice to the provisions of Clauses 6, 7 and 12, the Seller shall provide the Purchaser with a
written statement of all of the Adjustments to be made 

  

 13 

 
hereunder and giving the final amount of the Consideration (the “Final Completion Statement”), which statement shall be prepared in the form
set out in Schedule 4. If the Parties fail to agree the Final Completion Statement within fifteen (15) Business Days of receipt by the Purchaser, the Final Completion Statement shall be referred for determination in accordance with the
provisions of Clause 3.13. The agreed or determined amounts, to the extent not already paid or taken into account on Completion, shall be paid by the Purchaser. Payment of agreed or disputed amounts or portions thereof shall be made within ten
(10) Business Days following either agreement of the Parties or determination under Clause 3.13 (as the case may be). 
  

	3.13	If the Parties cannot reach agreement on the contents of all or part of the statements referred to in Clauses 3.10 and/or 3.12 within the time limit provided in Clause 3.12, the
disputed items may be referred by either the Seller or the Purchaser for determination by an independent chartered accountant nominated by the Parties or, in the absence of agreement between the Parties within ten (10) Business Days of a Party
notifying the other that it proposes to refer the dispute to an independent chartered accountant, by the President of the Institute of Chartered Accountants in England and Wales on the application of such Party. The nominated chartered accountant
shall be afforded such access to books, records, accounts and documents in the possession of the Parties as he may reasonably request, and he shall act as expert not as arbitrator. The said accountant’s determination shall, in the absence of
fraud or manifest error or bias, be final and binding on the Parties, his fees and disbursements shall be borne by the Seller and the Purchaser in equal shares and the Parties shall bear their own costs in respect of such reference.

  

	3.14	The Interim Completion Statement and the Final Completion Statement will be prepared on the information available at the time of their preparation and shall be without prejudice to
any further claims arising under Clauses 6, 7 and/or 12 after the time of the preparation of such statements. The Seller and the Purchaser shall liaise on the compilation and agreement of the Interim Completion Statement and the Final Completion
Statement and the Seller shall provide to the Purchaser, as soon as reasonably practicable, all the Seller’s calculations (and supporting documents) in the preparation of the Adjustments for verification purposes including such explanations and
methodology as the Purchaser shall reasonably require. Without prejudice to the generality of the foregoing, subject to and to the extent of any confidentiality obligations by which it is bound, the Seller shall provide the Purchaser with copies of
all Operators’ reports, billing statements and correspondence and any other relevant documentation in its possession necessary to support the Interim Completion Statement and the Final Completion Statement. Where the Seller is unable to provide
the Purchaser with such information due to confidentiality obligations by which it is bound it shall provide the same to an independent chartered accountant for the purposes of certifying the accuracy of such information to the Purchaser.

 Time -value adjustments 
  

	3.15	An amount equivalent to interest (calculated on a compounded basis on the accumulated daily balances) at the Agreed Rate shall be payable on the Purchase Price from the Economic
Date up to the Completion Date (both dates inclusive). 

  

 14 

	3.16	In respect of the Adjustments, an amount equivalent to interest (calculated on a compounded basis on the accumulated daily balances) at the Agreed Rate shall be payable (and in the
case of clauses 3.16.3 and 3.16.4 below be taken into account in the calculation of the relevant Adjustment) on each of: 

  

	 	3.16.1	the Working Capital Adjustment from the Economic Date up to and including the Completion Date, and, in the case of final adjustments or disputed items, thereafter up to and
including the date of settlement thereof; 

  

	 	3.16.2	the cash calls and billing invoices comprised in the Cash Calls Adjustment from the date on which such cash call or billing invoice is paid by the Seller up to and including the
date of settlement of such element of the Cash Calls Adjustment; 

  

	 	3.16.3	the receipts comprised in the Petroleum Sales Adjustment from the date of such receipt by or credit to the Seller up to and including the date of settlement of such element of the
Petroleum Sales Adjustment; and 

  

	 	3.16.4	the items of expenditure comprised in the Interim Period Adjustment from the date such item of expenditure is paid by the Seller up to and including the date of settlement of such
element of the Interim Period Adjustment. 

  

	3.17	The Parties agree that the amounts set out in Clauses 3.15 and 3.16 are adjustments to the Purchase Price and not actual interest on any debt between the Seller and the Purchaser
and the Parties agree to submit their CT returns on that basis. 

  

	4	Interim Period 

  

	4.1	During the Interim Period, (in so far as it falls after the date of this Agreement) the Seller shall: 

  

	 	4.1.1	continue to carry on its affairs in relation to the Interests in the ordinary course and in accordance with good oil and gas field practice; 

  

	 	4.1.2	(to the extent that it is able so to do having regard to the provisions of the Licensed Interest Documents) consult with the Purchaser with regard to the Interests where reasonably
practicable and co-operate with the Purchaser so as to ensure an efficient handover of the Interests on Completion; 

  

	 	4.1.3	not, without the Purchaser’s prior written approval (not to be unreasonably withheld or delayed), encumber, sell, assign or otherwise dispose of the Interests or any part
thereof, or purport to do any of the same; 

  

	 	4.1.4	not, without the Purchaser’s prior written approval (not to be unreasonably withheld or delayed) enter into or agree to enter into or become party to any new licences,
operating agreements, farm-in or farm-out agreements, unitisation agreements, transportation agreements, long term gas sale or supply agreements or any other material agreement or undertaking (by whatever name called) relating to the Interests or
permit any other person to enter into or agree to enter in any such agreement on behalf of the Seller; 

  

 15 

	 	4.1.5	not, without the Purchaser’s prior written approval (not to be unreasonably withheld or delayed), enter into or agree to enter into any contract for the sale of gas and/or
other Petroleum products relating to the Interests or permit any other person to enter into or agree to enter in any such contract on behalf of the Seller; 

  

	 	4.1.6	maintain insurance in relation to the Interests (on behalf of and for the benefit of the Purchaser) to such extent and at such levels as would be in accordance with good oil and gas
field practice and otherwise in accordance with the JDA; 

  

	 	4.1.7	not, without the Purchaser’s prior written approval (not to be unreasonably withheld or delayed), undertake or agree to undertake any sole-risk or non-consent activities in
relation to the Interests; 

  

	 	4.1.8	not, without the Purchaser’s prior written approval (not to be unreasonably withheld or delayed), amend, renew, terminate or agree to amend, renew or terminate any of the
Licensed Interest Documents or waive or agree to waive any of its rights or remedies under the Licensed Interest Documents insofar as any such right or remedy is capable of relating to periods after the Economic Date or is in respect of
Decommissioning and/or Environmental Liabilities; 

  

	 	4.1.9	not, without the Purchaser’s prior written approval (not to be unreasonably withheld or delayed) undertake any operations or commit to any work programmes on Block 49/12b and

  

	 	4.1.10	not, without the Purchaser’s prior written approval (not to be unreasonably withheld or delayed): 

 (1) approve any expenditure or capital commitment relating to any Interest involving expenditure in excess of one hundred thousand Pounds
(£100,000) in any case other than: 
  

	 	(a)	any such expenditure in respect of which the Purchaser has given its prior consent as referenced in Clause 4.2 below; or 

  

	 	(b)	any expenditure necessitated by any emergency for the safeguarding of lives or property or the prevention of pollution (in which case the Seller shall to the extent practicable in
the circumstances consult with the Purchaser and in any event as soon as reasonably practicable inform the Purchaser). 

 (2)
approve any work programme or budget which (i) differs materially from the 2008 Budget prepared for the purposes of the Interests (a copy of which in relation to the Tors Area has been provided to the Purchaser) or (ii) differs from the
Budget approved in relation to the Wenlock Field as referenced in the AFEs in Schedule 5, in either case without the consent of the Purchaser and for this purpose an increase in such Budget of more than 5 % or increase in any expenditure or
capital commitment as shown in such Budget of more than 10 % shall be deemed to be material. 
  

 16 

	4.2	Without prejudice to Clause 4.1, the Seller shall (subject to any confidentiality obligations by which it is bound) between the date hereof and Completion generally keep the
Purchaser informed, in a timely manner, of all material matters not of a routine or minor nature affecting the Interests including the approval of any work programme, budget, AFE expenditure or capital commitment relating to the Interests and make
available for review by the Purchaser and any person authorised by the Purchaser all Data reasonably requested by the Purchaser. In this regard, the Purchaser acknowledges and accepts the AFEs in respect of Block 49/12aN as set out in Schedule 5 and
agrees that its consent to the same is not required pursuant to Clause 4.1 save for the New Works. 

  

	4.3	Notwithstanding that title to the Interests will not pass to the Purchaser until Completion, the Purchaser shall assume all risk in the Interests with effect from the date of this
Agreement and accordingly (save for and without prejudice to the Seller’s continuing obligations under Clause 4.1 (in particular under Clause 4.1.6)) the Purchaser shall be responsible for insuring the Interests and its rights and liabilities
arising in relation thereto under the terms of this Agreement. 

  

	4.4	During the Interim Period the Parties shall use their reasonable endeavours to negotiate and agree in good faith a joint development agreement to apply in relation to Licence P033,
Block 49/12aN, such agreement to be, mutatis mutandis, in similar terms to the JDA for Licence P.1034 (Blocks 42/25a and 43/21a) and P.683 (Block 43/22a) and in the event that such agreement is not entered into on Completion the Parties shall
continue to act in good faith to complete the agreement thereon and until such time the provisions of the JDA for Licence P.1034 (Blocks 42/25a and 43/21a) and P.683 (Block 43/22a) shall be deemed to apply in so far as reasonably practicable.

  

	5	Completion 

  

	5.1	Completion under this Agreement shall take place within ten (10) Business Days after all of the conditions referred to in Clause 2.2 have been satisfied, at such location and
at such time as the Parties may agree. 

  

	5.2	On the Completion Date all, but not part only, of the following business shall be transacted: 

  

	 	5.2.1	The Seller shall deliver to the Purchaser (to the extent not already delivered prior to Completion and/or already in the possession of the Purchaser): 

  

	 	5.2.1.1	the Assignment Documents duly and validly executed by all the signatory parties thereto other than the Purchaser; 

  

	 	5.2.1.2	a copy of the Secretary’s Consents and all other relevant consents, approvals or waivers, if any, referred to in Clause 2.2 and obtained by or on behalf of the Seller;

  

	 	5.2.1.3	a copy, certified as a true copy and in full force and effect by a director or the secretary of the Seller, of a resolution of the board of directors of the Seller authorising a
person or persons to execute this Agreement and the Assignment Documents on behalf of the Seller; and 

  

 17 

	 	5.2.1.4	written confirmation in terms satisfactory to the Purchaser that the Seller has notified to the relevant insurers the interest of the Purchaser in all property, assets and rights
associated with the Interests and the Licensed Interest Documents. 

  

	 	5.2.2	The Purchaser shall: 

  

	 	5.2.2.1	pay to the Seller the sums specified in the Interim Completion Statement, subject to Clause 3.11, by means of telegraphic transfer in immediately available funds to the
Seller’s Account for value in Sterlingon the Completion Date; 

  

	 	5.2.2.2	deliver to the Seller the Assignment Documents duly and validly executed by the Purchaser; 

  

	 	5.2.2.3	deliver to the Seller a copy of all relevant consents, approvals, or waivers, if any, referred to in Clause 2.2 and obtained by or on behalf of the Purchaser; and

  

	 	5.2.2.4	deliver to the Seller a copy, certified as a true copy and in full force and effect by a director or the secretary of the Purchaser, of a resolution of the board of directors of the
Purchaser authorising a person or persons to execute this Agreement and the Assignment Documents on behalf of the Purchaser; 

 and the Parties acknowledge and agree that all acts and transactions constituting Completion shall be regarded as a single transaction so that, at the option of the Party who is interested in the carrying out of the relevant act or
transaction, no action or transaction shall be deemed to have taken place unless and until all other actions and transactions constituting Completion shall have taken place as provided in this Agreement. The Parties acknowledge the essential nature
of this provision. 
  

	5.3	Each of the Parties shall and, if appropriate, shall ensure that its respective Affiliates shall execute such other documents and do all such other acts and things as may reasonably
be required, in order to effect the transfer of the Interests to the Purchaser and to implement the transactions contemplated hereunder and otherwise to carry out the true intent of this Agreement. 

  

	5.4	Following Completion, the Seller shall ensure that (to the extent not delivered prior to Completion) copies of the Licensed Interest Documents and copies of Data in the possession
or control of the Seller as requested and reasonably required by the Purchaser and which are not in the Purchaser’s possession are made available for collection by the Purchaser at its own expense and within normal business hours within thirty
(30) Business Days after the Completion Date. The costs of reproducing the Licence Interest Documents and the Data shall be borne by the Purchaser. The Seller shall also following Completion use its reasonable endeavours to obtain such waivers
and/or releases (at the cost of the Purchaser) which may be necessary so as to enable it to provide all data in the possession, custody or control of the Seller directly and exclusively relating to the Interests which may be the subject of
confidentiality obligations by which it is bound or which cannot be provided to the Purchaser because such transfer is prohibited by the agreement under which it is acquired and upon obtaining such waivers and/or releases shall promptly provide the
same to the Purchaser. 

  

 18 

	5.5	Notwithstanding Completion: 

  

	 	5.5.1	each provision of this Agreement (and any other document referred to in it) not performed at or before Completion but which remains capable of performance; 

 

	 	5.5.2	the Warranties and the Purchaser’s warranties under Clause 7.2; and 

  

	 	5.5.3	all covenants, indemnities and other undertakings contained in or entered into pursuant to this Agreement, 

 will remain in full force and effect and (except as otherwise expressly provided) without limit in time. 
  

	6	Indemnities 

  

	6.1	The Seller shall be liable for all costs, charges, expenses, liabilities and obligations (including in respect of the Burdened Interest as defined in the JOA in respect of the
Interests (together “Obligations”) which accrue in or relate to any period before the Economic Date and the Seller shall be entitled to all income, receipts, rebates, credits and other benefits in respect of the Interests (together
“Benefits”) which accrue in or relate to any period before the Economic Date. 

  

	6.2	The Purchaser shall be liable for all Obligations and entitled to all Benefits which accrue in or relate to any period on or after the Economic Date. 

  

	6.3	Subject to Clauses 7 and 12 and save to the extent that the Consideration includes any adjustment under Clause 3 which already takes account of any of the following (with the intent
that there shall be no-double – counting) :- 

  

	 	6.3.1	if any Obligations are incurred by the Seller in respect of any period on or after the Economic Date, the Purchaser shall reimburse and indemnify the Seller in respect thereof;

  

	 	6.3.2	if any Obligations are incurred by the Purchaser in respect of any period prior to the Economic Date, the Seller shall reimburse and indemnify the Purchaser in respect thereof;

  

	 	6.3.3	if any Benefits accrue to the Seller in respect of any period on or after the Economic Date, the Seller shall account to and reimburse the Purchaser in respect thereof; and

  

	 	6.3.4	if any Benefits accrue to the Purchaser in respect of any period prior to the Economic Date, the Purchaser shall account to and reimburse the Seller in respect thereof

 and any such reimbursements shall be treated as further adjustments to the Purchase Price. 
  

	6.4	Any amount to be paid or reimbursed in accordance with Clause 6.3 or any other provision of this Clause 6 shall be paid or reimbursed within ten (10) Business Days of receipt
thereof (or, in the case of Obligations, within ten (10) Business Days of receipt of notification from the Party which has incurred such Obligations) to the relevant Seller Account or Purchaser Account (as the case may be) (unless otherwise
intimated in writing). 

  

 19 

	6.5	For the avoidance of doubt, and without prejudice to the provisions of Clauses 6.1, 6.2 and 6.3, any Benefits or Obligations accruing in respect of the Interests in the form of
amounts receivable or payable resulting from any adjustment in relation to the operation of, and expenditure attributable to, the Interests in the period prior to the Economic Date shall accrue to the Seller. 

  

	6.6	Notwithstanding any other provision of this Agreement (but without prejudice to the Warranty in Clause 7.14), the Purchaser shall at its cost and expense perform and shall, to the
extent of the Interests, be responsible for all Decommissioning Liabilities and all Environmental Liabilities whether arising before, on or after the Economic Date and shall indemnify and hold the Seller and its Affiliates harmless against all and
any Losses and Expenses however arising out of or in connection with any and all Decommissioning Liabilities and any and all Environmental Liabilities, in each case to the extent of the Interests and regardless of whensoever such Decommissioning
Liabilities or Environmental Liabilities may arise or may have arisen and whether before, on or after the Economic Date and regardless of whosoever is or was a licensee under the Licence(s) or owned or leased the relevant property.

  

	6.7	The Purchaser shall promptly notify the Seller of any circumstances of which the Purchaser becomes aware and for which the Seller may have any benefit or liability under Clause 6.1
and/or Clause 6.3 and, if requested by notice in writing by the Seller, the Purchaser shall use its reasonable endeavours to defend or pursue any claim on behalf of the Seller and shall act in accordance with the Seller’s reasonable
instructions in respect thereof. In such event, the Seller shall indemnify the Purchaser in respect of all costs, claims and damages suffered by the Purchaser in defending or pursuing such a claim on the Seller’s behalf and acting in accordance
with the Seller’s reasonable instructions. 

  

	6.8	The rights and obligations in this Clause 6 shall not come into effect unless and until Completion takes place and for the avoidance of doubt any payments arising under this Clause
6 shall be made after the Completion Date. All adjustments and reimbursements made and the ascertainment of all Obligations and Benefits under this Clause 6 shall be calculated using the Accruals Basis of Accounting. 

  

	6.9	Notwithstanding any other provision of this Agreement, the Seller shall at its cost and expense perform and shall, be responsible for all Future Payment Liabilities whether arising
before, on or after the Economic Date and shall indemnify and hold the Purchaser and its Affiliates (including for this purpose Edison S.p.A and its Affiliates) harmless against all and any Losses and Expenses however arising out of or in connection
with any and all Future Payment Liabilities regardless of whensoever such Future Payment Liabilities may arise or may have arisen and whether before, on or after the Economic Date and regardless of whosoever is or was a licensee under the Licence(s)
or owned or leased the relevant property. Furthermore the Seller shall indemnify and hold the Purchaser harmless against any breach of the Warranty contained in Clause 7.1.19. 

  

	6.10	The Seller shall ensure that there are no obligations outstanding at Completion to sell gas or any other Petroleum products relating to the Interests to any person and that (without
limitation to the generality thereof) all commitments under the Forward Gas Sales Agreement which may relate to the Interests have been terminated. Furthermore the Seller shall indemnify and hold the Buyer harmless against any Losses and Expenses
however arising out of or in connection with any breach of the Warranty contained in Clause 7.1.18. 

  

 20 

	7	Representations and Warranties 

  

	7.1	Subject to the provisions of this Clause 7, the Seller hereby represents and warrants to the Purchaser that save in respect of matters fairly disclosed (with sufficient details to
identify the nature and scope of the matters disclosed) in the Data Room Documents, the Licence Interest Documents or this Agreement, the following Warranties are true and accurate: 

  

	 	7.1.1	the Seller is a licensee of the Licence(s) and the legal and beneficial owner of the Interests and all property rights and interests attributable thereto under the Licensed Interest
Documents; 

  

	 	7.1.2	save for the Limited Overriding Royalty Interest, no mortgage, charge (whether fixed or floating), pledge, lien, encumbrance or other security or net profit or royalty interest is
in existence and in force over the Interests other than arising under the Licence(s) nor, subject as aforesaid, has the Seller entered into any agreement or commitment to create the same; nor, so far as the Seller is aware, are there any other
matters which restrict the Seller’s ability freely to dispose of the Interests save for the terms of the Licence(s) and the Licence Interest Documents; 

  

	 	7.1.3	the Seller has not committed any breach of the Licence(s) or any of the Licensed Interest Documents nor received notice that any of the parties to any of the above-mentioned
documents has committed any breach of the Licence Interest Documents, which breach, at the date of making this statement, is in either case of a material nature and is subsisting and would have a material adverse effect upon the Seller’s
ownership of the Interests; 

  

	 	7.1.4	the Licence(s) and all rights and interests of the Seller thereunder or deriving therefrom are in full force and effect and the Seller has not committed any act or omission nor, so
far as the Seller is aware, has any other licensee of the Licence(s) committed any act or omission which would entitle the Secretary to revoke the Licence(s) and no notice has been given to the Seller or, so far as the Seller is aware, to any other
licensee of the Licence(s), by the Secretary of any intention to revoke the Licence(s); 

  

	 	7.1.5	the Licence(s) is not in the course of being surrendered in whole or in part; 

  

	 	7.1.6	none of the current licensees of the Licence(s) or the current parties to the JDA have given any notice of withdrawal from the Licence(s) or the JDA; 

  

	 	7.1.7	 the Seller is not a party to any litigation or arbitration or administrative proceedings relating to the Interests in respect of which a writ or summons or other
formal pleading has been served or judgment issued, nor has the Seller been notified of any claim (not formulated within a formal pleading as aforesaid) or dispute in relation to, and which is likely materially to prejudice or endanger in any
material manner, the Interests, and the Seller is not aware that any such litigation, arbitration or administrative proceedings are threatened or pending, either by or against the Seller, and there are no facts known to the Seller which are likely
to give rise to any claim or dispute which is likely so materially to prejudice or endanger in any material manner the Interests, and, so far as the Seller is aware, none of the other licensees of the Licence 

  

 21 

 
or the parties to the Licensed Interest Documents is a party to any litigation, arbitration or administrative proceedings or any claim or dispute or judgment
in relation to, and which is likely materially to prejudice or endanger in any material manner, the Interests; 
  

	 	7.1.8	the Seller is duly incorporated with limited liability and validly existing under the laws of England; 

  

	 	7.1.9	the documents which contain or establish the Seller’s constitution incorporate provisions which authorise, and all necessary corporate action has been taken to authorise, the
Seller to execute and deliver this Agreement and perform the transaction contemplated by this Agreement; 

  

	 	7.1.10	subject to fulfilment of the conditions set out in Clause 2.2, the signing and delivery of this Agreement and the performance of any of the transactions contemplated by this
Agreement will not contravene or constitute a material default under any provision contained in any agreement, instrument, law, judgment, order, licence, permit or consent by which the Seller or any of its Affiliates or their respective assets is
bound or affected and 

  

	 	7.1.11	the Licensed Interest Documents are the only material documents which govern or relate to the creation, existence or validity of the Interests, and to which the Seller is a party
and the Seller is not under any contractual obligation to enter into any further material agreement in relation to the Interests other than for operational purposes; 

  

	 	7.1.12	all accrued obligations and liabilities imposed by the Licence(s), including the work obligations arising from the Licence(s), have been duly fulfilled and discharged and there is
no outstanding work obligation to be fulfilled under the Licence(s); 

  

	 	7.1.13	the Seller is not a party to any farm-in or farm-out agreement under which it will become obliged to transfer the Interests or any part of them; 

  

	 	7.1.14	In relation to the following: 

  

	 	7.1.14.1	the Seller has not received any orders or directives under any Environmental Laws in force at the date hereof which require any material work, repairs, construction or capital
expenditures with respect to the Interests which have not been fully complied with in all material respects; 

  

	 	7.1.14.2	the Seller has not received any demand or notice under any Environmental Law in force at the date hereof with respect to a material breach thereof related to the Interests;

  

	 	7.1.14.3	the Seller has not received any complaint from any UK government, agency or group regarding any actual or alleged material environment damage or material injury related to the
Interests; 

  

	 	7.1.14.4	so far as the Seller is aware the Seller has complied in all material respects with Environmental Law in force at the date hereof in relation to the Interests;

  

 22 

	 	7.1.15	the Seller is not for statutory purposes deemed to be unable to pay its debts and is able to pay its debts as they fall due and no steps have been taken to propose any scheme of
arrangement involving the Seller and its creditors generally, obtain an administration order or appoint any administration or other receiver or equivalent officer in relation to the Seller or any of its property or to wind up or dissolve the Seller.
No order has been made, petition presented or meeting convened for the purpose of considering a resolution for the winding up of the Seller or for the appointment of any provisional liquidator; and so far as the Seller is aware, no petition has been
presented for an administration order to be made in relation to the Seller; 

  

	 	7.1.16	the Seller is not party to, and nor is the Seller aware of, any proposal by any other party to the Licensed Interest Documents to conduct any sole risk or non-consent operations
under the Licence(s) so as to impose upon the Seller an obligation to pay any penalty or premium as a condition of participating in any future operation under the Licensed Interest Document in question; 

  

	 	7.1.17	the Seller (and/or the Operator on behalf of the Seller) has in place all insurances required by law and by the JDA and the Joint Operating Agreement in relation to the Interests;

  

	 	7.1.18	all reserves of Petroleum arising from the Interests may following Completion be freely lifted and disposed of by the Purchaser and are not contracted for sale or otherwise
committed to any person or entity; 

  

	 	7.1.19	details of expenditures on which capital allowances have been claimed or would have been claimed in the Seller’s corporation tax returns have been provided to the Purchaser and
to the extent that any part of the Consideration is allocated to assets qualifying for capital allowances under Part 2 and Part 5 of the Capital Allowances Act 2001, such capital allowances are available; 

  

	 	7.1.20	there are no outstanding obligations of the Seller (whether or not attaching to the Interests) to make future and/or contingent payments to any person from whom the Seller acquired
all or part of the Interests (other than the Future Payment Liabilities); 

 Provided that the Warranties given in Clauses
7.1.4 to 7.1.6 (inclusive) and Clause 7.1.12 are, to the extent that the Seller does not have an interest in a Block in such Licence, given so far as the Seller is aware and for the avoidance of doubt provided further that no matters are disclosed
pursuant to Clause 7.1 and 7.3 in relation to the Warranty in Clause 7.1.19. 
  

	7.2	Subject to the provisions of this Clause 7 the Purchaser hereby represents and warrants to the Seller as follows: 

  

	 	7.2.1	the Purchaser is duly incorporated with limited liability and validly existing under the laws of England; 

  

	 	7.2.2	the documents which contain or establish the Purchaser’s constitution incorporate provisions which authorise, and all necessary corporate action has been taken to authorise,
the Purchaser to execute and deliver this Agreement and perform the transactions contemplated hereby; 

  

 23 

	 	7.2.3	subject to fulfilment of the conditions set out in Clause 2.2, the signing and delivery of this Agreement and the performance of the transactions contemplated by this Agreement,
will not contravene or constitute a default under any provision contained in any agreement, instrument, law, judgment, order, licence, permit or consent by which the Purchaser or any of its Affiliates or any of their respective assets is bound or
affected and which would result in the Purchaser being unable to perform its obligations under this Agreement; 

  

	 	7.2.4	no litigation, arbitration, administrative proceeding, dispute or judgement against the Purchaser (or its Affiliates) or to which the Purchaser (or its Affiliates) is a party which
might by itself or together with any other such proceedings have a material adverse effect on the Purchaser’s business, assets or condition and which would materially and adversely affect its ability to observe or perform its obligations under
this Agreement and the transactions contemplated hereby, is subsisting or, so far as the Purchaser is aware, threatened or pending against the Purchaser or any of its assets or against its Affiliates; 

  

	 	7.2.5	there are no facts within the actual knowledge of the Purchaser or its Affiliates at the date hereof which will entitle the Purchaser to make any claim against the Seller and,
insofar as there are any such facts, the Purchaser shall not be entitled to make any claim in respect thereof; and 

  

	 	7.2.6	the Purchaser is not for statutory purposes deemed to be unable to pay its debts and is able to pay its debts as they fall due and no steps have been taken to propose any scheme of
arrangement involving the Purchaser and its creditors generally, obtain an administration order or appoint any administration or other receiver or equivalent officer in relation to the Purchaser or any of its property or to wind up or dissolve the
Purchaser. No order has been made, petition presented or meeting convened for the purpose of considering a resolution for the winding up of the Purchaser or for the appointment of any provisional liquidator; and so far as the Purchaser is aware, no
petition has been presented for an administration order to be made in relation to the Purchaser. 

  

	7.3	The Warranties are given as at the date of this Agreement and shall be repeated as at the Completion Date subject to matters fairly disclosed (with sufficient details to identify
the nature and scope of the matters disclosed) in the Data Room Documents, the Licence Interest Documents or this Agreement. Accordingly, the Purchaser shall not be entitled to claim that any fact or matter constitutes a breach of or inconsistency
with the Warranties and the Seller shall not be liable to the Purchaser for any claim to the extent that such fact or matter has been so disclosed. 

  

	7.4	Subject to Clause 7.3 and without prejudice to Clause 7.2.5, the Purchaser’s remedy for breach of any of the Warranties or any other provision of this Agreement shall be
limited to a claim for damages and/or indemnity and the Purchaser shall not be entitled to any other form of remedy in relation thereto including rescission of this Agreement. Any payment by the Seller to the Purchaser for damages pursuant to a
breach of any of the Warranties shall be treated as a reduction in the Purchase Price to the extent of such payment. 

  

	7.5	 Save in the case of fraud or wilful concealment of material facts, the Seller shall not be liable for any claim for breach of any of the Warranties unless it shall
have received from the Purchaser, as soon as practicable after the Purchaser becomes aware of the 

  

 24 

	 	 
same, written notice containing reasonable details of the relevant claim including the Purchaser’s bona fide provisional estimate of the amount of the
claim provided always that such notice is received on or before the expiry of eighteen(18) months from the Completion Date in the case of the Warranties other than the warranty contained in Clause 7.1.19 and in the case of such warranty before 31
st March 2014. Any claim made shall be deemed to have been withdrawn or satisfied unless arbitration proceedings in respect thereof have been
both issued and served on the Seller within six (6) months of the giving of such notice. 

  

	7.6	Except as set out in Clause 7.1, neither the Seller nor any of its Affiliates nor any officer, shareholder, director, employee, agent, adviser, consultant or representative of the
Seller or any of its Affiliates (including their auditors) makes any representation, warranty, statement, opinion, information or advice (including any representation, warranty, statement, opinion, information or advice (a) communicated (orally
or in writing) to the Purchaser or any Affiliate of the Purchaser or (b) made in any data, information or document communicated to the Purchaser or any Affiliate of the Purchaser or made by any officer, shareholder, director, employee, agent,
adviser, consultant or representative of the Seller or any Affiliate of the Seller) and the Purchaser acknowledges, affirms and warrants that (except as aforesaid) it has not relied, and will not rely, upon any such representation, warranty,
statement, opinion, information or advice of any person in entering into this Agreement or carrying out the transactions contemplated by this Agreement. Without limiting the generality of the foregoing, the Seller makes no representation or warranty
as to: (i) the amounts, quality or deliverability of reserves of oil, gas or other hydrocarbons attributable to the Interests, (ii) any geological, geophysical, technical, engineering, economic or other interpretations, forecasts or
evaluations, (iii) any forecast of expenditures, budgets or financial projections, (iv) any geological formation, drilling prospect or hydrocarbon reserve, or (v) the physical state or condition of any of the assets associated with
the Interests and the Purchaser acknowledges that all such assets are to be acquired by the Purchaser on an “as is, where is” basis. 

  

	7.7	Save in the case of fraud or wilful concealment of material facts, the Purchaser shall not be liable for any claim in relation to any breach of the provisions of Clause 7.2 unless
it shall have received from the Seller, as soon as practicable after the Seller becomes aware of the same, written notice containing reasonable details of the relevant claim including the Seller’s bona fide provisional estimate of the amount of
the claim and in any event such notice is received on or before the expiry of twelve (12) months from the Completion Date. Any claim made shall be deemed to have been withdrawn or satisfied unless judicial proceedings in respect thereof have
been both issued and served on the Purchaser within six (6) months of the giving of such notice. 

  

	7.8	Save in the case of fraud or wilful concealment of material facts or breach of the Warranty contained in Clause 7.1.19, the liability of the Seller in respect of any claim for
breach of the Warranties shall be limited as follows: 

  

	 	7.8.1	the Seller shall have no such liability unless the total loss or damage claimed to have been suffered by the Purchaser (acting in good faith) in respect thereof when aggregated with
other such claims amounts to two million Dollars ($2,000,000) or more, whereupon the whole of such liability and not merely the excess shall be recoverable; and 

  

 25 

	 	7.8.2	individual claims with a value of less than two hundred and fifty thousand Dollars ($250,000) shall be disregarded for all purposes including for the calculation of the aggregate
value of claims for the purposes of Clause 7.8.1; and 

  

	 	7.8.3	the maximum aggregate liability of the Seller in respect of all such claims (including interest and expenses) shall not exceed an amount equal to the Purchase Price.

  

	7.9	If: 

  

	 	7.9.1	the Purchaser becomes aware of any circumstance which may result in the Purchaser having a claim against the Seller under this Clause 7 as a result of or in connection with a
liability or alleged liability to a third party, or 

  

	 	7.9.2	the Purchaser is or may be entitled by law to recover from some other person any sum in respect of which the Purchaser may have a claim against the Seller under this Clause 7,

 the Purchaser shall promptly notify the Seller thereof in writing and the Purchaser shall make no admission of liability,
agreement, settlement or compromise with any third party in relation to any such liability or alleged liability without the prior written consent of the Seller and the Seller shall at its expense be entitled to take and/or require the Purchaser to
take any action the Seller might reasonably request to prevent a claim arising or to resist such liability or enforce such recovery (as the case may be) and to have conduct of any appeal, dispute, compromise or defence and of any incidental
negotiations for the aforesaid purposes, subject to indemnifying the Purchaser in terms reasonably acceptable to the Purchaser against any Losses and Expenses the Purchaser may incur, and the Purchaser will give the Seller all practicable
co-operation, access, assistance and information for the purposes of preventing such a claim, resisting such liability or enforcing such recovery as aforesaid. 
  

	 	7.10	Where the Purchaser is or may be entitled to recover from some other person any sum in respect of any liability, loss or damage the subject of a claim by the Purchaser against the
Seller in respect of any breach of the Warranties or for which such a claim could be made, the Purchaser shall, before seeking to recover any amount from the Seller under this Agreement, take all reasonable steps as the Seller may reasonably require
to enforce such recovery and shall keep the Seller informed of the progress of any action taken and any claim against the Seller shall be limited (in addition to the limitations on the liability of the Seller referred to in this Clause 7) to the
amount by which the loss or damage suffered by the Purchaser as a result of such breach shall exceed the amount so recovered. If the Seller pays to the Purchaser an amount pursuant to a claim in respect of any breach of the Warranties and the
Purchaser is entitled to recover from some other person any sum to which it would not have been or become entitled but for the circumstances giving rise to such a claim, the Purchaser shall promptly undertake all appropriate steps to enforce such
recovery and shall forthwith repay to the Seller the amount recovered from the third party or, if less, the amount paid by the Seller, less any costs and expenses reasonably incurred by the Purchaser in recovering that amount from the third party.

  

	 	7.11	The Seller shall not be liable for any breach of any provision of this Clause 7 nor shall the Purchaser have any rights in respect of any inconsistency therewith arising after the
date hereof, to the extent that such breach or inconsistency is occasioned by the Seller doing or omitting to do any act or thing at the written request of the Purchaser. 

  

 26 

	 	7.12	A breach of warranties under Clause 7.1 or Clause 7.2 which is capable of remedy shall not entitle a Party to make a claim unless the warrantor is given notice of such breach and
the warrantor has failed to commence remedial action within thirty (30) days after the date on which such notice is served on the warrantor. Without prejudice to the foregoing, if any claim shall arise by reason of some liability which at the
time that the claim is notified to a Party is contingent only, such Party shall not be under any obligation to make any payment in respect of such claim until such time as the contingent liability ceases to be so contingent.

  

	 	7.13	Where a representation or warranty is qualified by the words “so far as the Seller is aware”, or any similar expression, such representation or warranty is given only to
the extent that any of the officers or directors of the Seller or ATP Oil & Gas Corporation or senior managers of the Seller have actual knowledge of the matters to which it refers as at the date the representation or warranty is given
after due and careful inquiry only of those of the Seller’s senior employees directly engaged in the management of the Interests and who could reasonably be expected to have knowledge of the subject matter of the relevant representation or
warranty (and no other persons). 

  

	 	7.14	Nothing in this Agreement shall relieve a Party of any duty, whether at common law or otherwise, to mitigate any loss or damage incurred by it in respect of any breach by the other
Party of the representations, warranties, indemnities or any other term of this Agreement or in respect of its subject matter. 

  

	 	7.15	A Party shall not be entitled to recover from the other Party the same sum or loss more than once in respect of any claims for any breach of any provision of this Agreement or in
respect of its subject matter. 

  

	 	7.16	Notwithstanding any other provisions of this Agreement, neither Party shall be liable to the other Party under, arising out of or in any way connected to this Agreement or the
Assignment Documents, for any Consequential Loss, whether arising in contract or in tort (including negligence, breach of statutory duty or otherwise). For these purposes “Consequential Loss” means loss of revenue, production or profits;
or inability to produce Petroleum; or losses associated with business interruption; or loss of bargain, contract (other than this Agreement), expectation or opportunity; or any loss, claim or expense which arises out of the delay, postponement,
interruption to or inability to produce, deliver or process production from the Interests; or any increase in operating or other costs; or all indirect or consequential losses or damages howsoever caused or arising. 

  

	8	Ongoing obligations and liabilities 

  

	 	8.1	The Parties shall co-operate with each other and shall execute such documents and take such actions as may reasonably be requested from time to time in order to give full effect to
the intent of this Agreement. 

  

	 	8.2	Each Party undertakes to provide written advice to the other Party of any event giving rise to an adjustment under Clause 6, Clause 7 or Clause 12.7 or Clause 12.9.2, including such
documentary evidence as is reasonably deemed to be necessary by the other Party to verify the adjustment, within thirty (30) days of becoming aware of such an event. 

  

 27 

	9	Announcements and Confidentiality 

  

	9.1	No Party shall, and each Party shall procure that none of its Affiliates shall, issue or make any public announcement or statement regarding this Agreement or any transactions
contemplated hereby without the prior written consent of the other Party, such consent not to be unreasonably withheld or delayed, except to the extent that it is necessary for a Party or its Affiliate to make such public announcement or statement
in order to comply with a statutory obligation, an obligation to include information in published or audited accounts, or with the requirement of a competent government agency or other regulatory body, the London Stock Exchange plc, the Securities
and Exchange Commission of the United States of America or a recognised stock exchange on which that Party or such Affiliate has its shares or oil production or royalty stock listed, in which event the Party proposing to make such an announcement or
statement shall, as soon as practicable and, if possible prior to its release, issue a copy thereof to the other Party. In all circumstances the Parties shall consult in relation to the form of the announcement. 

  

	9.2	The terms and conditions of this Agreement shall be held confidential by the Parties and all information furnished or disclosed to a Party in connection with the transactions
contemplated by this Agreement (“Confidential Information”) whether before or after the date hereof shall be held confidential by such Party and neither the terms of this Agreement nor any Confidential Information shall, subject to
Clause 9.1, be divulged in any way to any third party by one Party without the prior written approval of the other Party; provided that such Party may, without such approval, disclose the same to:- 

  

	 	9.2.1	any of its Affiliates provided such Party remains liable for any breach of confidentiality by such Affiliate(s); or 

  

	 	9.2.2	any outside professional consultants or other professional advisers consulted in connection with this Agreement (including an expert and/or accountant appointed hereunder) provided
such Party obtains a similar undertaking of confidentiality (but excluding this proviso) from such consultants and advisers; or 

  

	 	9.2.3	any bank or financial institution from whom such Party is seeking or obtaining finance, provided such Party obtains a similar undertaking of confidentiality (but excluding this
proviso) from such bank or institution; or 

  

	 	9.2.4	the extent required by any applicable laws, the Licence(s), or the requirements of any recognised stock exchange or the Securities and Exchange Commission of the United States of
America in compliance with its rules and regulations; or 

  

	 	9.2.5	the extent required by any Government agency or authority lawfully requesting the same; or 

  

	 	9.2.6	any Court of competent jurisdiction acting in pursuance of its powers; or 

  

 28 

	 	9.2.7	the extent that the terms of this Agreement or any Confidential Information become public knowledge or for any other reason cease to be confidential otherwise than through breach of
this undertaking. 

  

	9.3	Notwithstanding the termination of this Agreement the provisions of this Clause 9 shall continue to apply for a period of three (3) years from the date hereof.

  

	10	Notices 

  

	10.1	Except as otherwise provided in this Agreement any notice or other document to be given under this Agreement shall be in writing and shall be deemed to be duly given if it (or the
envelope containing it) identifies the Party to whom it is intended to be given as the addressee and: 

  

	 	10.1.1	it is delivered personally; or 

  

	 	10.1.2	it is sent by (i) pre-paid first class post or airmail or express or other fast postal service or (ii) the recorded delivery service or (iii) facsimile transmission,

 to the appropriate address or facsimile number and marked for the attention of the appropriate person shown in Clause 10.3
or to such other addresses and/or facsimile numbers and/or marked for the attention of such other persons as may be given by a Party for the purposes of this Agreement by notice to the other Party. 
  

	10.2	Any notice duly given within the meaning of Clause 10.1 shall be deemed to have been both given and received: 

  

	 	10.2.1	if it is delivered in accordance with Clause 10.1.1, on such delivery; 

  

	 	10.2.2	if it is duly posted or transmitted in accordance with Clause 10.1.2 by any of the methods therein specified, on the second (or, when sent by airmail, the fifth) Business Day after
the day of posting or (in the case of a notice transmitted by facsimile) on the first Business Day after the day of transmission and receipt by the sender of a successful transmission report indicating full and complete transmission.

  

	10.3	The respective addresses for service are: 

  

	 	Seller	ATP Oil & Gas (UK) Limited 

  

	 	  	Victoria House, 

	 	  	London Square, 

	 	  	Cross Lanes, 

	 	  	Guildford GU1 1UJ 

  

	 	  	Facsimile: 01483 307222 

	 	  	Email: jgill@atpog.com 

	 	  	Attention: John Gill 

  

 29 

	 	  	copied to: 

  

	 	  	ATP Oil & Gas Corporation 

  

	 	  	4600 Post Oak Place, 

	 	  	Suite 200, 

	 	  	Houston, 

	 	  	Texas 11027-9726 

  

	 	  	Facsimile: + 1 713 622 0289 

	 	  	Email: jtschirhart@atpog.com 

	 	  	Attention: John Tschirhart 

  
  

	 	Purchaser	EDF Production UK Ltd 

  

	 	  	c/o 1 Blake Mews. 

	 	  	Kew Gardens, 

	 	  	London, TW9 3GA 

  

	 	  	Facsimile: +44 208 439 9868 

	 	  	Emails: amj@lawxl.com 

	 	  	Emails: philippe.antoine@edf.fr 

  

	 	  	Attention: Philippe M Antoine 

  

	 	  	copied to: 

  

	 	  	Facsimile: +33 1 5665 0837 

  

	 	  	Attention: Charles-Henri Prou 

	 	  	Emails: charles-henri.prou@edf.fr 

  
  

	10.4	For the purposes of this Clause 10 “notice” shall include any request, demand, instructions or other document. 

  

	11	Costs and Expenses 

  

	11.1	Save as otherwise stated in this Agreement, each Party shall pay its and its Affiliates’ own costs, expenses, duties and, except as otherwise expressly agreed in writing,
Taxation in relation to the preparation and execution of this Agreement, the documents contemplated hereby or executed pursuant hereto and any transactions contemplated by this Agreement. 

  

	11.2	Without prejudice to any other rights or remedies available to a Party hereunder or at law, if any amount payable hereunder is not paid when due, the defaulting Party shall pay
interest on such amount from the due date of payment (after as well as before judgment) at a rate equal to two percent (2%) above the Agreed Rate calculated on a compounded basis on the accumulated daily balances. 

  

 30 

	11.3	The Purchaser shall be responsible for payment in a timely fashion of any and all stamp duty land tax, stamp duties, transfer taxes, registration fees and other charges payable on
or in respect of this Agreement, the Assignment Documents and/or any related agreements and in respect of its or their subject matter and any similar taxes, duties, fees and charges wheresoever arising in relation to the transfer of the Interests to
the Purchaser. 

  

	12	Taxation 

  

	12.1	The Seller confirms that it is registered and the Purchaser confirms that it has applied for registration and will use its reasonable endeavours to obtain registration before
Completion, as taxable persons for the purposes of VAT and that no election has been made and no election will be made prior to the Completion Date under paragraph 2 of Schedule 10 to the Value Added Tax Act 1994 in relation to the Interests.

  

	12.2	The Purchaser undertakes that it will use the Interests as part of its business of searching for, boring for and getting petroleum as a going concern for a sufficient period to
comply with the requirements of Article 5 of the Value Added Tax (Special Provisions) Order 1995 so that the assignment of the Interests is treated as neither a supply of goods nor a supply of services for VAT purposes. 

  

	12.3	The Purchase Price is stated net of any applicable VAT. The Parties believe that the sale and transfer hereunder is a transaction which is outside the scope of VAT by virtue of
Article 5 of the Value Added Tax (Special Provisions) Order 1995 and/or that the transfer contemplated hereby is of a right over land situated outside the United Kingdom and as such will be treated as outside the scope of Value Added Tax by virtue
of Article 5 of the Value Added Tax (Place of Supply of Services) Order 1995. However, in the event that a Party is advised in writing by HM Revenue and Customs that the transaction hereunder is subject to VAT, the Purchaser undertakes to pay to the
Seller, on delivery of a valid VAT invoice, any amounts due in respect of VAT within thirty (30) days of demand. 

  

	12.4	Reimbursement pursuant to Clause 6.3 shall be exclusive of VAT which the Party receiving the reimbursement may be required to charge and, if called upon to do so by the such Party,
the Party making the reimbursement undertakes to pay such Party, on presentation of a valid VAT invoice, any amounts properly due in respect of VAT set out in such invoice within thirty (30) days of demand. 

  

	12.5	Subject to Clause 12.3, any Adjustments pursuant to Clause 3 or payments or reimbursements pursuant to Clause 6.3 or Clause 7 in respect of any payment or receipt being an amount in
respect of which VAT has been paid or received shall be made on a basis disregarding the VAT element where the VAT paid is fully deductible or is required to be accounted for in full to HM Revenue and Customs, but otherwise shall be made on a basis
which leaves the Seller and the Purchaser in no better and no worse a position (after taking account of VAT, and subject to the application of the other provisions of this Clause 12) than had the payment or receipt not been made or received.

  

	12.6	 The Seller shall make an application to HM Revenue and Customs under Section 49(1) (b) of the Value Added Tax Act 1994 for a direction that the records
relating to the Interests which under paragraph 6 of Schedule 11 to the Value Added Tax Act 1994 have been maintained by the Seller or its Affiliates should be preserved by the Seller or its Affiliates, as the case may be, 

  

 31 

	 	 
notwithstanding the provisions of the said section. The Seller shall, as soon as reasonably practicable following receipt thereof, provide the Purchaser with
a copy of any such direction and the Purchaser shall retain access at all reasonable times during business hours to all books and records retained by the Seller or its Affiliates in relation to VAT matters concerning the Interests and the Seller
covenants to retain such records as required by paragraph 6 of Schedule 11 to the Value Added Tax Act 1994. 

  

	12.7	CT Adjustments 

  

	 	12.7.1	The Purchase Price shall be increased by the Purchaser paying to the Seller an amount equal to any CT paid by the Seller on any receipts taken into account, using the Accruals Basis
of Accounting, for the purposes of Clause 3.7, the Petroleum Sales Adjustment. 

  

	 	12.7.2	The Purchase Price shall be decreased by the Seller paying to the Purchaser an amount equal to any CT relief received by the Seller on any cash calls paid and any expenditure taken
into account, using the Accruals Basis of Accounting, for the purposes of Clause 3.6, the Cash Calls Adjustment and Clause 3.8, the Interim Period Adjustment. 

  

	 	12.7.3	The Parties recognise that adjustments under this Clause 12.7 are notional adjustments, as opposed to actual payments of, reliefs from or reductions in CT liabilities. For the
purpose of calculating these notional adjustments it shall be assumed that both the Seller and the Purchaser are single companies with no brought forward losses who are paying CT at the standard rate applicable for the period concerned. Such
notional adjustments shall be effected by deducting from each relevant payment a notional CT charge. In calculating the notional CT charge, the CT rate to be used will be the rate which applies at the end of the month in which the receipt or payment
arises, or if the rate of CT changes during a month the arithmetic mean of the rates applicable for that month shall be used. 

  

	 	12.7.4	If the Parties cannot reach agreement on all or part of the adjustments referred to in this Clause 12.7 within thirty (30) Business Days of receipt by the Purchaser from the
Seller of the Seller’s estimate of such adjustments, the adjustments in dispute may be referred by either the Seller or the Purchaser for determination by an independent expert nominated by the Parties or, in the absence of agreement between
the Parties within five (5) Business Days of a Party notifying the other that it proposes to refer the dispute to an expert, by the President of the Institute of Chartered Accountants in England and Wales on the application of either the Seller
or the Purchaser. Within twenty (20) Business Days after the appointment of such expert, each Party may submit to the expert a statement of the nature of the dispute, a description of the submitting Party’s claims with respect thereto, and
any other supporting documentation or materials with respect thereto that the submitting Party desires the expert to consider. The Party submitting such statement shall provide a copy thereof to the other Party, who shall have ten (10) Business
Days from receipt thereof to submit a responding statement to the expert. The nominated expert shall be afforded such access to books, records, accounts and documents in the possession of the Parties as he may reasonably request, and he shall act as
expert not as arbitrator. The said expert’s determination shall, in the absence of fraud or manifest error or bias, be final and binding on the Parties, his fees and disbursements shall be borne by the Seller and the Purchaser in equal shares
and the Parties shall bear their own costs in respect of such reference. 

  

 32 

	12.8	The Seller shall be liable for any liabilities arising under Schedule 15 to the Finance Act 1973 in respect of the Interests or the Licence(s)for periods ending up to the Economic
Date and the Purchaser shall be liable for all periods thereafter. 

  

	12.9.1	The Seller and the Purchaser agree that the allocation of Consideration set out in Schedule 2 is a just and reasonable apportionment of the Consideration and both agree to submit
their CT returns for all relevant years on the basis of said allocation. Further, the Seller and the Purchaser agree consistently to allocate the Consideration attributable to amounts eligible for capital allowances between plant and machinery
allowances and mineral extraction allowances on their respective CT returns. Where HM Revenue and Customs does not agree with the claim for capital allowances by the Purchaser, the allocation set out in Schedule 2 shall be adjusted to take into
account the just and reasonable apportionment agreed by HM Revenue and Customs and to reflect any revised disposal proceeds taken into account in the Seller’s revised CT returns. 

  

	 12.9.2
	 If any part of the Consideration allocated as set out in Schedule 2 to assets qualifying for capital allowances under
Part 2 and/or Part 5 of the Capital Allowances Act 2001 is not agreed by HM Revenue and Customs and the total of the capital allowances claim of the Purchaser is reduced, the Seller shall pay to the Purchaser, by way of adjustment to the Purchase
Price, an amount equal to fifty percent (50%) of the amount by which the total of the Purchaser’s claim for capital allowances is reduced by HM Revenue and Customs provided always that, save in the case of fraud or wilful concealment of
material facts, the Seller shall not be liable for any payment to the Purchaser pursuant to this Clause 12.9.2 unless it shall have received from the Purchaser, as soon as practicable after the Purchaser becomes aware of the amount of capital
allowances not being so agreed, written notice containing reasonable details of the relevant claim including the Purchaser’s bona fide provisional estimate of the amount of the claim and in any event such notice is received on or before
31st March 2014. Any payment under this clause shall not be due for payment until the earlier of 1st January 2012 and the date on which the increased Taxation that results from the adjustments to the allocation of consideration falls due for payment to HM Revenue and Customs.

  

	13	Variation 

 The terms and conditions of this Agreement shall only
be varied by an agreement in writing signed by each of the Parties and specifically referring to this Agreement. 
  

	14	Assignment 

 No Party shall assign or transfer its rights or its
obligations under this Agreement without the prior written consent of the other Party save that (a) prior to Completion the Purchaser may assign its rights under this Agreement (in whole or in part) with the consent of the Seller (such consent
not to be unreasonable withheld or delayed) and (b) after Completion the Purchaser may assign its rights under this Agreement (in whole or in part), in either case to an Affiliate(s) and/or to an Affiliate(s) of Edison S.p.A. 
  

 33 

	15	Rights of Third Parties 

 With the exception of the rights of the
Seller’s Affiliates to enforce the terms of Clause 6.6, nothing in this Agreement is intended to confer on any person any right to enforce any term of this Agreement which that person would not have had but for the Contracts (Rights of Third
Parties) Act 1999. Notwithstanding the foregoing, the Parties may by agreement rescind or vary any term of this Agreement without the consent of any of the Seller’s Affiliates. 
  

	16	General 

  

	16.1	If there is any conflict between the provisions of this Agreement and the provisions of the Assignment Documents, the provisions of this Agreement shall prevail. The provisions of
the main body of this Agreement shall prevail over the provisions of the Schedules in the event of any conflict. 

  

	16.2	Without prejudice to the provisions of Clauses 7.5 and 7.7, this Agreement shall remain in full force and effect notwithstanding Completion. 

  

	16.3	No waiver by any Party of any breach of a provision of this Agreement shall be binding unless made expressly and in writing and any such waiver shall relate only to the matter to
which it expressly relates and shall not apply to any subsequent or other matter. 

  

	16.4	This Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the Parties. 

  

	16.5	This Agreement may be executed in any number of counterparts but shall not be effective until each Party has executed at least one counterpart. Each of the executed counterparts
shall be deemed to be an original of this Agreement, but taken together, all the counterparts shall constitute one and the same instrument. 

  

	16.6	This Agreement is not intended to constitute or create nor shall it be construed so as to constitute or create any partnership, association, joint venture or trust. Notwithstanding
the foregoing if, for the income tax purposes of the United States of America, this Agreement and the transactions under this Agreement are regarded as a partnership, each Party which is affected thereby elects to be excluded from the application of
all of the provisions of Subchapter “K” of Chapter 1 of Subtitle “A” of the Internal Revenue Code of 1986 as amended of the United States of America (the “Code”), as permitted and authorised by Section 761 of the
Code and the Treasury Regulations promulgated under the Code, and any future income tax laws of the United States containing similar provisions. No affected Party shall give any notices or take any other action inconsistent with the election made
hereby. In making the foregoing election, each affected Party states that the income derived by it from the transactions under this Agreement can be adequately determined without a computation of partnership taxable income. A Party that is not
subject to the income tax laws of the United States of America in respect of this Agreement and the transactions under this Agreement shall not be required to do any act or execute any instrument which might subject it to the taxation jurisdiction
of the United States of America. 

  

 34 

	16.7	Each provision of this Agreement is severable and distinct from the others and if any such provision shall in whole or in part be held to any extent to be illegal or unenforceable
under any enactment or rule of law that provision or part shall to that extent be deemed not to form part of this Agreement and the validity and enforceability of the remainder of this Agreement shall not be affected. 

  

	 16.8
	 This Agreement, and the confidentiality agreement between the Parties dated 30th May 2008 contain the entire agreement between the Parties and supersedes the Offer Letter dated 28 August 2008 from the Purchaser, the Letter Agreements dated
September 5, 2008 and September 11, 2008 between the Parties, all prior negotiations, proposals, statements of intent, understandings and agreements relating to the subject matter hereof. Each of the Parties agrees that it will have no
remedy in respect of any untrue representations or statements made by the other Party or its advisers, unless made fraudulently, and upon which it relied in entering this Agreement. 

  

	17	Governing Law and Arbitration 

  

	17.1	The construction validity and performance of this Agreement and all agreements executed pursuant hereto shall be governed by English law (other than choice of law rules).

  

	17.2	Subject to Clause 3.13 and Clause 12.7.4, all disputes arising out of or in connection with this Agreement shall be finally settled under the Rules of Arbitration of the LCIA by
three (3) arbitrators appointed in accordance with those rules. London shall be the seat of arbitration and the language of the arbitration shall be English and all documents submitted to the arbitration shall be submitted to the arbitration in
their original form together with an English translation. 

  

	17.5	Each Party agrees that without preventing any other mode of service, any document in any dispute referred to arbitration hereunder may be served on any Party by being delivered to
or left for that Party at its address for service of notices under Clause 10 and each Party undertakes to maintain such an address at all times in accordance with Clause 10 and to notify the other Party in advance of any change from time to time of
the details of such address in accordance with the manner prescribed for service of notices under Clause 10. 

  

 35 

 IN WITNESS whereof this Agreement has been signed by the duly authorised representatives of the Parties on the day
and year first above written. 
  
  

	
	SIGNED for and on behalf of
	ATP OIL & GAS (UK) LIMITED
	
	/s/ John Gill
	 Director

	
	SIGNED for and on behalf of
	EDF PRODUCTION UK LTD
	
	/s/ Dominique Venet
	 Director

  

 36 

 Schedule 1 
  
 Licence(s), related Licensed Interest Documents and other related information 
  
 Tors Field – Kilmar Interest
under UK Petroleum Production Licence No. P.683 dated 12th September 1989 and Garrow Interest under UK Petroleum Production Licence No. P.1034 dated 6
th February 2002 
  

	(A)	Blocks 

 Licence P.683 – Block 43/22a
(including the Kilmar Field) 
 Licence P.1034 – Blocks 42/25a and 43/21a (including the Garrow Field) 
  

	(B)	Licensees & Percentage Interests 

  
  

						
	 ATP Oil &
Gas (UK) Limited
	  	 	  	85	%    
	 Sojitz Energy Project Limited
	  	 	  	15	%    

  

	(C)	JDA 

 Agreement for the Joint Development of and Production from the Tors Fields United Kingdom Petroleum Production Licences P.683 (Block 43/22a) and P.1034 (Blocks 42/25a and 43/21a) (to be known as the “Tors Development Agreement”)
dated 21st December 2005. 
  

	(D)	Operator 

 ATP Oil & Gas (UK) Limited

  

	(E)	Licensed Interest Documents 

 Licence P.683 dated
12 September 1989. 
 DTI letter dated 1 October 1991. 
 Joint operating agreement (JOA) relating to licence P.683 dated 7 October 1991. 
 Deed of licence assignment dated 20 November 1991. 
 Novation and amendment agreement in respect of JOA dated 20 November 1991. 
 Deed of licence assignment
dated 6 November 1992. 
 Novation agreement in respect of JOA dated 6 November 1992. 
  

 37 

 Deed of licence assignment dated 1 January 1993. 
 Novation agreement in respect of JOA dated 1 January 1993. 
 Deed of licence assignment dated 25 January 1994. 
 Novation agreement in respect of JOA dated
25 January 1994. 
 Area of Mutual Interest Agreement dated 22 February 1994. 
 DTI letter and attached schedule of retained area dated 12 July 1995. 
 Deed of licence assignment dated 1 August 1995. 
 Deed of assignment of interest dated 1 August
1995. 
 Novation agreement in respect of JOA dated 1 August 1995. 
 Deed of licence assignment dated 21 December 1995. 
 Deed of assignment of interest dated 21 December 1995. 
 Novation agreement in respect of JOA dated
21 December 1995. 
 JOA relating to licences P.683 and P.891 dated 22 August 1996. 
 Seismic trade agreement dated 13 June 1997. 
 Deed of licence assignment dated 2 October 1998. 
 Deed of assignment of interest dated 2 October 1998. 
 Novation agreement in respect of JOA dated 2 October 1998. 
 Deed of rectification dated 2 October 1998. 
 Deed of licence assignment dated 1 May 2000.

 Novation of Joint Operating Agreement dated 1 May 2000. 
 Sales and Purchase Agreement between ATP (UK), Arco and ATP Corp dated 7 May 2001. 
 Stamp Duty Agreement 7 May 2001. 
 Deed
of Assignment 20 June 2001. 
 Novation of JOA 20 June 2001. 
  

 38 

 Assignment of Percentage Interest 20 June 2001. 
 Licence P.1034 dated 6 February 2002, Blocks 42/25a and 43/21a dated 06 February 2002. 
 Deed of Licence Agreement 19 February 2003. 
 Deed of Adherence to Agreement for Provision of Claims Validation 6 May 2003. 
 Sale and Purchase Agreement – GDF and ATP – dated 10 March 2005 
 Heads of Terms for Offshore and
Compression Services 21 March 2005. 
 Heads of Terms for Transportation 21 March 2005. 
 Heads of Terms for Processing Services 21 March 2005. 
 Extracts from Minutes of Board Meeting 25 May 2005. 
 Percentage of Interest Assignment 27 May
2005. 
 Deed of Licence Assignment 27 May 2005. 
 SEAL Pipeline Crossing Agreement 7 July 2005 Signature Page. 
 DTI Approval for dev of Kilmar Field
20 July 2005. 
 Construction & Tie-in Agreement (with P.683) 11 August 2005. 
 Letter of Agreement re ARCO (with P.683) 17 November 2005. 
 Joint Development Agreement (with P.683) 21 December 2005. 
 Letter Agreement re Decommissioning
Security (with P.683) 21 December 2005 
 Deed of Licence Assignment (with P.683) 21 December 2005. 
 Novation of Construction & Tie-In (with P.683) 21 December 2005. 
 Side Letter To CTIA 14 February 2006. 
 Deed of Adherence to ABAAA 24 March 2006. 
 Deed of Adherence to ABUFA 24 March 2006. 
 Tors Field POSA 24 March 2006. 
 Side
Letter to POSA 24 March 2006. 
  

 39 

 EAGLES Tors Transportation Agreement 24 March 2006. 
 EAGLES Area Sub Allocation Agreement 24 March 2006. 
 Tors Bacton Processing Agreement 24 March 2006. 
  

 40 

 The Wenlock Field Interests under UK Petroleum Production
Licence No. P.033 dated 17th September 1964 
  

	(A)	Blocks 

 Licence P.033 – Block 49/12aN
(including the Wenlock Field). 
  

	(B)	Licensees & Percentage Interests 

  

						
	 ATP Oil & Gas (UK)
Limited
	  	 	  	100	%    

  

	(C)	JOA 

 P.033 Joint Operating Agreement Block 49/12a North dated 14th December 2005. 
  

	(D)	Operator 

 ATP Oil & Gas (UK) Limited.

  

	(E)	Licensed Interest Documents 

 UKCS Petroleum
Production Licence P.033 dated 17/9/64. 
 Agreement between National Coal Board (Exploration) Limited and Continental Oil dated 14/2/67 (and
letter dated 10/3/67). 
 Deed of Assignment dated 7/3/67 (and Ministry of Power letter dated 6/3/67). 
 Supplemental Deed to Licence dated 17/8/70. 
 Schedule of Retained Area dated 18/9/70. 
 Letter agreement concerning UKCS Licences P.025 and P.033 dated 9/3/71. 
 Joint Operating Agreement dated 18/6/71 and letter dated 18/6/71 (and supplementary agreement dated 18/6/71). 
 Sub-Licence relating to Block 49/17 dated 25/3/74. 
 Agreement for the transfer of certain of the assets and undertakings of BNOC Exploration Limited dated 20/12/78. 
 Dept. Energy
consent dated 17/8/79. 
 Deed of licence assignment dated 20/11/79. 
 Novation of JOA dated 20/11/79. 
  

 41 

 Letter approving Conoco (UK) Limited as operator of Licence P.033 dated 15/8/80. 
 Dept. Energy letter approving Conoco resignation dated 24/10/80. 
 Novation agreement relating to JOA dated 24/11/80. 
 Letter from DoE – Development and Production Works
consent dated 31/12/80. 
 DoE letter re assignment of sub-licence dated 19/10/81. 
 Scheme re Britoil dated 1/8/82 and DoE letter dated 9/11/82. 
 Dept. Energy consent dated 8/10/85. 
 JOA Amendment Agreement dated 14/10/85. 
 Dept. Energy consent dated 19/11/86. 
 Dept.
Energy consent dated 8/12/86. 
 JOA Amendment Agreement dated 7/7/88. 
 Letter from Conoco re Conoco Development Limited dated 8/7/88. 
 Letter from Conoco re letter agreement dated 8/7/88. 
 Letters from Britoil plc relating to JOA dated
19/1/89. 
 Deed or licence assignment dated 1/2/89. 
 Letter Agreement re notice of assignment dated 1/12/89. 
 Deed of licence assignment dated 24/2/93.

 Trust Deed dated 24/2/93. 
 JOA Novation and Amendment Agreement dated 24/2/93. 
 JOA Novation and Amendment Agreement dated 30/6/93. 
 DTI letter of approval dated 13/6/94. 
 Letter to DTI attaching licence assignment form re Britoil transfer dated 18/11/94. 
 JOA Novation and Amendment Agreement dated
9/12/94. 
 Letters to/from DTE re Britoil transfers dated 15/12/94. 
 Letters to DTI re Licence Assignment dated 9/3/95 and 17/5/95. 
 Fax to DTI re Licence dated 22/6/95. 
  

 42 

 Letters from DTI dated 21/6/95 and 23/6/95. 
 JOA Amendment Agreement (undated). 
 JOA
Amendment Agreement dated 29/12/94. 
 Deed of licence assignment dated 29/6/95. 
 Trust Deed (Block 49/16 Ganymede Extension Area) dated 29/6/95. 
 JOA Amendment Agreement dated 30/9/95. 
 JOA Novation Agreement dated 3/11/95. 
 Letters to DTI re Licence dated 18/11/96, 20/12/96 and 18/2/97. 
 Letter of consent from DTI dated 20/12/96 and letter dated 13/3/97. 
 DTI letter of consent dated 24/7/97.

 Supplemental Deed to Trust Deed (49/16) dated 30/11/97. 
 DTI letter of consent dated 23/12/97. 
 Deed
of licence assignment dated 9/2/98. 
 Consent to assignment of sub-licence dated 9/2/98. 
 Supplemental Deed to Trust Deed (49/16) dated 9/2/98. 
 JOA Novation Agreement dated 26/3/98. 
 DTI letter of consent dated 30/7/98. 
 Deed of licence assignment dated 25/11/98. 
 JOA Novation and Amendment Agreement dated 25/11/98. 
 Supplemental Deed to Trust Deed (49/16) dated 25/11/98. 
 Deed of licence assignment dated 25/11/98. 
 JOA Novation Agreement dated 27/11/98. 
 DTI consent dated 9/8/99. 
 Deed of licence assignment dated 19/4/00. 
 Deed of licence assignment dated 11/5/00. 
 Supplemental Deed to Trust Deed (49/16) dated 11/05/00. 
  

 43 

 DTI consent dated 25/7/00. 
 JOA Novation and Amendment Agreement dated 30/10/00. 
 Deed of licence assignment dated 30/10/00.

 Agreement for the sale and purchase of assets in relation to UKCS Block 49/12a North dated 26/1/01. 
 Stamp Duty Agreement relating to U.K. Petroleum Production Licence P.033 – Block 49/12a North dated 26/1/01. 
 Novation and Amendment to the Southern North Sea Joint Operating Agreement relating to Licences P.033 and P.130 (Amendment Number 20) dated 30/3/01.

 Deed of Novation of Trust Deed U.K. Petroleum Production Licence P.033 (Block 49/16 – Ganymede Extension Area) dated 30/3/01.

 Deed of Assignment in respect of U.K. Petroleum Production Licence P.033 dated 30/3/01. 
 Assignment of Percentage Interest relating to Block 49/12a North dated 30/3/01. 
 Novation and Amendment to the Operating Agreement relating to Exploration and Production Operations under UK Production Licences Nos. P.033 and P.130
Amendment No. 21 dated 21/12/01. 
 Supplemental Deed to Trust Deed in relation to Sub-Licence P.033 (Block 49/17) dated 26/4/02.

 Novation and Amendment of the Operating Agreement relating to Exploration and Production Operations in certain parts of the Southern North
Sea under U.K. Petroleum Production Licences Nos. P.033 and P.130 – Amendment No.22 dated 15/5/02. 
 Novation and Amendment of the
Operating Agreement relating to Exploration and Production Operations in certain parts of the Southern North Sea under U.K. Petroleum Production Licences Nos. P.033 and P.130 – Amendment No.23 dated 12/11/02. 
 Deed of Novation and Amendment to Trust Deed relating to U.K. Petroleum Production Licence No. P.033 (Block 49/16 – Ganymede Extension Area)
dated 12/11/02. 
 Letter from ConocoPhillips (U.K.) Limited re merger dated 10/12/02. 
 Letter from BP Exploration Operating Company Ltd re transfer of assets under P.033 dated 23/5/03. 
 Deed of Assignment in respect of UK Petroleum Production Licence P.033 dated 19/5/03. 
 Deed of Novation of and Amendment to Trust Deed relating to U.K. Petroleum Production Licence No. P.033 (Block 49/16 – Ganymede Extension Area)
dated 19/5/03. 
  

 44 

 Novation and Amendment of the Operating Agreement relating to Exploration and Production Operations in
certain parts of the Southern North Sea under U.K. Petroleum Production Licences Nos. P.033 and P.130 –Amendment No.24 dated 19/05/03. 
 Novation and Amendment of the Operating Agreement relating to Exploration and Production Operations in certain parts of the Southern North Sea under UK Petroleum Production Licences Nos. P.033 and P.130 –Amendment No.25 dated
4/6/03. 
 Execution Deed re transfer of interests in Southern Waters Production JOA dated 31/10/03. 
 Novation and Amendment of the Operating Agreement relating to Exploration and Production Operations in certain parts of the Southern North Sea under UK
Petroleum Production Licences Nos. P.033 and P.130 –Amendment No 27 dated 22/12/03. 
 Amendment of the Operating Agreement
relating to Exploration and Production Operations in certain parts of the Southern North Sea under UK Petroleum Production Licences Nos. P.033 and P.130 – Amendment No.29 dated 14/9/05. 
 Sale and Purchase Agreement in relation to P.033, Block 49/12a North – (including Venture Discovery area) dated 14/12/05. 
 Letter Agreement re acquisition of ConocoPhillips interest in P.033 dated 14/12/05. 
 Joint Operating Agreement Block 49/12a North dated 14/12/05. 
 Trust Deed in respect of United Kingdom Petroleum Production Licence P.033 Block 49/12A North (Area K) dated 14/12/05. 
 Deed of Amendment No.30 to Operating Agreement relating to Exploration and Production Operations in Certain Parts of the Southern North Sea under UK Petroleum Production Licences P.033 and P.130 dated 14/12/05.

 Trust Deed in respect of United Kingdom Petroleum Production Licence P.033 Block 49/12a North (Area K) and part Block 49/16 (Viper Area)
dated 23/12/05. 
 Grant of Permission to enter 500m zone for the purpose of ROV inspection dated 28/5/06. 
 Letter of Credit re Wenlock dated 8/8/06. 
 Novation and Amendment Agreement in respect of Joint Operating Agreement Block 49/12A (North) dated 9/8/06. 
 Deed of Assignment of
Limited Overriding Royalty Interest 9/8/06. 
 DTI letter re Wenlock Field Development dated 18/8/06. 
 DTI letter re Development and Production Works dated 18/8/06. 
 Agreement relating to Preparatory work for the possible tie-in of the Wenlock Facilities to Inde Platform 49/23AC dated 29/8/06. 
 Construction and Tie-in Agreement relating to the tie-in of the Wenlock Facilities to Inde Platform 49/23 AC dated 11/9/06. 
  

 45 

 Cable Crossing Agreement in respect of the Wenlock/Inde 23AC Pipelines and the Norsea Communications
Cable dated 12/9/06. 
 ATP Power of Attorney dated 19/12/06. 
 Decommissioning Security Agreement relating to Wenlock Field dated 21/12/06. 
 Novation of Joint Operating
Agreement relating to Block 49/12a North dated 21/12/06. 
 Letter of undertaking re Decommissioning Security Agreement dated 21/12/06.

 Letter Agreement relating to Sale and Purchase Agreement in relation to P.033, Block 49/12a (North) dated 21/12/06. 
 Trust Deed in respect of Licence P.033 dated 14/6/07. 
 Letter from ConocoPhillips re Licence P.033 Rationalisation dated 21/6/07. 
 Execution Deed in respect of UK
Petroleum Production Licence P.025, Part of Block 53/1a Camelot Fields and Associated Infrastructure and Non-Producing Acreage dated 25/6/07. 
 Deed of Rectification in relation to the Amoco Bacton Allocation and Attribution Agreement and the Amoco Bacton User Fields Agreements dated 28/6/07. 
 Schedule 3 to Deed of Rectification dated 28/6/07. 
 Execution Deed relating to transfer of
Victor/Jupiter/Bell P.025/P.033 Interests (Licences and Trust Deeds) dated 28/6/07. 
 Amoco Bacton User Fields Agreement New User Group
Notice for Wenlock Field dated 27/7/07. 
 Amoco Bacton Allocation and Attribution Agreement New User Notice for Wenlock Field dated 1/8/07.

 Deed of Adherence to the Amoco Bacton Allocation and Attribution Agreement dated 4/10/07. 
 Deed of Adherence to the Amoco Bacton User Fields Agreement dated 4/10/07. 
 Amending Agreement to the Amoco Bacton Allocation and Attribution Agreement dated 16/10/07. 
 Agreement for
Transportation of Natural Gas from the Wenlock Field via the Inde Facilities and Provision of Offshore Services dated 16/11/07. 
 Agreement
for Reception, Processing and Redelivery of Natural Gas from the Wenlock Field at the Perenco Bacton Terminal dated 16/11/07. 
 Wenlock
Backgassing Agreement dated 20/11/07. 
 Supplemental Agreement to Joint Operating Agreement Block 49/12A (North) dated 20/11/07. 

 

 46 

 Execution Deed in respect of UK Petroleum Production Licences P.033 (Block 49/17) and P.025 (Block
49/22a) (Victor) dated 30/11/07. 
 Deed of Novation and Amendment of Trust Deed in respect of Licence P.033 dated 19/12/07. 
 Deed of Assignment in respect of United Kingdom Petroleum Production Licence No. P.033 dated 19/12/07. 
 Amoco Bacton Allocation and Attribution Agreement New User Group Notice dated 23/1/08. 
 Amoco Bacton User Fields Agreement New User Group Notice dated 23/1/08. 
  

 47 

 Schedule 2 
 Summary of the Consideration allocated to assets qualifying for Capital Allowances 
  
  

									
	Field/Area	 	Plant & Machinery (£s)	 	Mineral exploration
& access – (£s)	 	 	  	£s
					
	 Wenlock
	 	  99,471,975	 	462,434	 		  	  101,280,000
					
	 Tors
	 	134,179,135	 	572,290	 		  	  163,720,000
		 		 		 		  	£265,000,000

 Any balance of the respective considerations will be allocated to the Licences 
  

 48 

 Schedule 3 
 Working Capital 
  

	1.	Pursuant to Clause 3.5, the working capital balance shall be determined in relation to the Interests in accordance with the provisions of this Schedule 3, by adding together the
amounts of the Cash Balances, VAT Receivable, Other Assets, Inventory (net of provisions) and Prepayments (the “Positive Balance”) for the Interests and adding together the amounts of any overdraft balance, VAT Payable, Accruals and Other
Liabilities (the “Negative Balance”) for the Interests and deducting the Negative Balance from the Positive Balance, and adding together the net balances. 

  

	2.	Elements 

 The elements of working capital shall
comprise those items set out in the Exhibit to this Schedule 3, which items shall relate solely to the Interests and have the following meanings: 
  

			
		
	 “Accruals”
	 	means the amounts accrued by the Joint Account but unpaid as at the Economic Date;
		
	 “Cash Balances”
	 	means cash balances held by the Joint Account at the Economic Date;
		
	 “Inventory”
	 	means the value of equipment held at the Economic Date;
		
	 “Joint Account”
	 	means any joint account held by the Operator in accordance with the JOA;
		
	 “Other Assets”
	 	means other assets due to the Joint Account but unpaid at the Economic Date;
		
	 “Other Liabilities”
	 	means the other liabilities accrued by the Joint Account but unpaid as at the Economic Date;
		
	 “Prepayments”
	 	means amounts prepaid by the Seller or the Operator on account of expenditure incurred on an accruals basis of accounting after the Economic Date;
		
	 “VAT Receivable/Payable”
	 	means VAT due to/from the Joint Account but not recovered/paid at the Economic Date.

  

	3.	Valuation of certain elements 

 For all elements of
working capital, the figures shall be derived from the statements provided by the Operator. 
  

 49 

 Exhibit to Schedule 3 
 Working Capital Statement 
  

							
	INTEREST	  	100% 
  JOINT VENTURE  
£	  	 INTEREST
 %
	  	INTEREST SHARE 
£
				
	AS PER OPERATOR STATEMENTS	  		  		  	
				
	CASH BALANCES	  		  		  	
				
	PREPAYMENTS	  		  		  	
				
	VAT RECEIVABLE/PAYABLE	  		  		  	
				
	OTHER ASSETS	  		  		  	
				
	INVENTORY	  		  		  	
				
	ACCRUALS	  		  		  	
		  	 	  		  	 
				
	OTHER LIABILITIES	  		  		  	
		  	 	  		  	 
				
		  		  		  	
		  	 	  		  	 
				
		  		  		  	
				
		  		  		  	
				
		  		  		  	
		  		  		  	 
	TOTAL WORKING CAPITAL	  		  		  	
		  		  		  	 

  

 50 

 Schedule 4 
 Format for Interim Completion Statement and Final Completion Statement 
  

											
	 STATEMENT OF CONSIDERATION

						
		 		  		  		  		  	
	 Description
	 	 Clause/Schedule
	  	 Amount £
	  	 Amount £
	  	 	  	 
						
	 Purchase Price
	 	Clause 3.1	  		  		  		  	
	 Interest thereon
	 	Clause 3.15	  		  		  		  	
						
	 Adjustments
	 		  		  		  		  	
						
	 Working Capital Adjustment
	 	Clause 3.5, Schedule 3	  	+/-	  		  		  	
	 Interest thereon
	 	Clause 3.16	  	+/-	  	+/-	  		  	
		 		  	 	  		  	 	  	
						
	 Cash Calls Adjustment
	 	Clause 3.6	  	+	  		  		  	
	 Interest thereon
	 	Clause 3.16	  	+	  	+	  		  	
		 		  	 	  		  	 	  	
						
	 Petroleum Sales Adjustment
	 	Clause 3.7	  	-	  		  		  	
	 Interest thereon
	 	Clause 3.16	  	-	  	-	  		  	
		 		  	 	  		  	 	  	
						
	 Interim Period Adjustment
	 	Clause 3.8	  	+	  		  		  	
	 Interest thereon
	 	Clause 3.16	  	+	  	+	  		  	
		 		  	 	  		  	 	  	
						
		 		  		  		  		  	
		 		  		  	 	  		  	 
						
		 		  		  		  		  	
		 		  		  	 	  		  	 
	 Total consideration (incl Adjustments)
	  		  		  		  	
		 		  		  	 	  		  	 

  

 51 

 Schedule 5 
 AFEs referenced in Clause 4.2 
  

 52

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