Document:

Warrant Purchase Agreement

 Exhibit 10.1 
  

 WARRANT PURCHASE AGREEMENT 
 by and among 
 Transmeridian Exploration Incorporated, as Issuer and Seller 
 and 
 the parties named herein, as Purchasers

 with respect to Seller’s 
 Warrants to Purchase Common Stock 
 March 15, 2007 
  

 Table of Exhibits and Schedules 
  

			
	Exhibit A	  	Form of Warrant
		
	Exhibit B	  	Form of Investor Rights Agreement
		
	Exhibit C	  	Form of Opinion of Seller’s Counsel
		
	Schedule 1	  	Purchasers, Amount of Securities Purchased and Purchase Price

 WARRANT PURCHASE AGREEMENT 
 This Warrant Purchase Agreement (the “Agreement”) is made and entered into as of March 15, 2007, by and among Transmeridian Exploration Incorporated, a Delaware corporation (the
“Seller”), and each of the persons listed on Schedule 1 hereto (each is individually referred to as a “Purchaser” and collectively, as the “Purchasers”). 
 WHEREAS, each of the Purchasers is willing to purchase from the Seller, and the Seller desires to sell to the Purchasers, Common Stock Purchase Warrants
(the “Warrants”) entitling the holders thereof to purchase up to 8,500,000 shares of the Seller’s common stock, $0.0006 par value (the “Common Stock”), as more fully set forth herein. 
 NOW THEREFORE, in consideration of the mutual promises and representations, warranties, covenants and agreements set forth herein, the parties hereto,
intending to be legally bound, hereby agree as follows: 
 ARTICLE I—PURCHASE AND SALE 
 1.1 Purchase and Sale. 
 On the
terms and subject to the conditions set forth in this Agreement, at the Closing (as defined in Section 2.2), the Seller will sell and each of the Purchasers will purchase Warrants to purchase a number of shares of Common Stock as set forth on
Schedule 1. The shares of Common Stock issuable upon exercise of the Warrants are referred to herein as the “Warrant Shares.” The Warrants and Warrant Shares are sometimes collectively referred to herein as the
“Securities”. 
 1.2 Terms of the Warrants. The terms and provisions of the Warrants are more fully set forth
in the form of Common Stock Purchase Warrant, attached hereto as Exhibit A. 
 1.3 Transfers; Legends. 
 (a)(i) Except as restricted by federal securities laws and the securities law of any state or other jurisdictions, the Warrants and Warrant Shares may be
transferred, in whole or in part, by any of the Purchasers at any time. Any such transfer shall be made by a Purchaser in accordance with applicable law. Any transferee shall agree in writing to be bound by the terms of the Investor Rights Agreement
and this Agreement. The Seller shall reissue certificates evidencing the applicable Securities upon surrender of certificates evidencing the Securities being transferred in accordance with this Section 1.3(a). 
 (ii) In connection with any transfer of Securities other than pursuant to an effective registration statement under the Securities Act of 1933, as
amended (the “Securities Act”), or to the Seller, the Seller may require the transferor thereof to furnish to the Seller an opinion of counsel selected by the transferor, such counsel and the form and substance of which opinion
shall be reasonably satisfactory to the Seller and Seller’s counsel, to the effect that such transfer does not require registration under the Securities Act; provided, however, that in the case of a transfer pursuant to Rule 144 under
the Securities Act, no opinion shall be required if the transferor provides the Company with a customary seller’s representation letter, and, if such sale 

 
is not pursuant to subsection (k) of Rule 144, a customary broker’s representation letter and Form 144. Notwithstanding the foregoing, the Seller
hereby consents to and agrees to register on the books of the Seller and with any transfer agent for the securities of the Seller, without any such legal opinion, any transfer of Securities by a Purchaser to an Affiliate of such Purchaser, provided
that the transferee certifies to the Seller that it is an “accredited investor” as defined in Rule 501(a) under the Securities Act and that it is acquiring the Securities solely for investment purposes (subject to the qualifications
hereof) and not with a view to, or for, resale, distribution or fractionalization thereof in whole or in part in violation of the Securities Act. 
 (iii) An “Affiliate” means any Person (as such term is defined below) that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are
used in and construed under Rule 144 under the Securities Act. With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an
Affiliate of such Purchaser. A “Person” means any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or
subdivision of any thereof) or other entity of any kind. 
 (b) The certificates representing the Securities, unless, with respect to the
Warrant Shares, such shares are eligible for resale without registration pursuant to Rule 144(k) under the Securities Act or have been sold pursuant to an effective registration statement under the Securities Act (in which case any such legend shall
be removed), shall bear the following legend: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND MAY NOT BE OFFERED OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT UNLESS, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, SUCH REGISTRATION IS NOT REQUIRED.” 
 ARTICLE II—PURCHASE PRICE AND CLOSING 
 2.1 Purchase Price. The purchase price (the “Purchase Price”) to be paid by each of the Purchasers to the Seller to acquire the Warrants shall be as set forth beside the name of such Purchaser on Schedule
1 hereto. 
 2.2 The Closing. The closing of the transactions contemplated under this Agreement (the
“Closing”) will take place as promptly as practicable, but no later than two (2) business days following satisfaction or waiver of the conditions set forth in Article 5.1(a) and 5.2(a) (other than those conditions which by
their terms are not to be satisfied or waived until the Closing), at the offices of Wiggin and Dana LLP, 400 Atlantic Street, Stamford, Connecticut 06901. The date on which the Closing occurs is the “Closing Date.” 
 ARTICLE III—REPRESENTATIONS AND WARRANTIES OF THE SELLER 
 The Seller represents and warrants to the Purchasers as follows, as of the date hereof: 
  

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 3.1 Corporate Existence and Power; Subsidiaries. The Seller and its Subsidiaries are
corporations or other organizations duly incorporated or organized (as the case may be) and validly existing, and the Seller is in good standing, in each case under the laws of the jurisdiction in which they are incorporated or organized. The Seller
and its Subsidiaries have all corporate powers required to carry on their business as now conducted and are duly qualified to do business as a foreign corporation in each jurisdiction where the character of the property owned or leased by them or
the nature of their activities makes such qualification necessary, except for those jurisdictions where the failure to be so qualified would not have a Material Adverse Effect on the Seller. For purposes of this Agreement, the term “Material
Adverse Effect” means, with respect to any person or entity, a material adverse effect on its and its Subsidiaries’ condition (financial or otherwise), business, properties, assets, liabilities (including contingent liabilities),
results of operations or current prospects, taken as a whole. True and complete copies of the Seller’s Certificate of Incorporation, as amended, and Bylaws, as amended, as currently in effect and as will be in effect on the Closing Date
(collectively, the “Certificate and Bylaws”), have previously been provided or made available to the Purchasers. For purposes of this Agreement, the term “Subsidiary” or “Subsidiaries” means, with respect
to any entity, any corporation or other organization of which securities or other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are directly or indirectly
owned by such entity or of which such entity is a partner or is, directly or indirectly, the beneficial owner of 50% or more of any class of equity securities or equivalent profit participation interests. 
 3.2 Corporate Authorization; Enforceability. The execution, delivery and performance by the Seller of this Agreement, the Warrants, the
Investor Rights Agreement (as defined below), and each of the other documents executed pursuant to and in connection with this Agreement (collectively, the “Related Documents”), and the consummation of the transactions contemplated
hereby and thereby (including, but not limited to, (i) the sale and delivery of the Warrants and (ii) the subsequent issuance of the Warrant Shares upon exercise of the Warrants) have been duly authorized, and, other than the preparation,
filing and approval of an additional listing application with the American Stock Exchange (“AMEX”) with respect to the issuance of the Warrant Shares upon exercise of the Warrants, no additional corporate or stockholder action is
required pursuant to the rules of any stock exchange, market or bulletin board on which the Common Stock is traded or otherwise for the approval of this Agreement, the Related Documents or the consummation of the transactions contemplated hereby or
thereby. The Warrant Shares have been duly reserved for issuance by the Seller. This Agreement and the Related Documents have been or, to the extent contemplated hereby or by the Related Documents, will be duly executed and delivered and constitute
the legal, valid and binding agreement of the Seller, enforceable against the Seller in accordance with their terms, except as may be limited by bankruptcy, reorganization, insolvency, moratorium and similar laws of general application relating to
or affecting the enforcement of rights of creditors, and except as enforceability of its obligations hereunder are subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 3.3 Regulatory Authorization. Except as otherwise specifically contemplated in this Agreement and the Related Documents, and
except for: (i) the approval by AMEX of an additional listing application with respect to the issuance of the Warrant Shares upon exercise of the Warrants; (ii) the filing of the Registration Statement (as defined in the Investor Rights

  

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Agreement) with the Securities and Exchange Commission (the “SEC” or the “Commission”); and (iii) any filings required
under state or provincial securities laws that are permitted to be made after the date hereof, the execution, delivery and performance by the Seller of this Agreement and the Related Documents, and the consummation of the transactions contemplated
hereby and thereby (including, but not limited to, (i) the sale and delivery of the Warrants and (ii) the subsequent issuance of the Warrant Shares upon exercise of the Warrants) by the Seller require no action by or in respect of, or
filing with, any governmental or regulatory body, agency, official or authority. 
 3.4 Non-Contravention. The execution,
delivery and performance by the Seller of this Agreement and the Related Documents, and the consummation by the Seller of the transactions contemplated hereby and thereby (including the issuance of the Warrant Shares) do not and will not
(a) contravene or conflict with the Certificate and Bylaws of the Seller and its Subsidiaries or any material agreement to which the Seller is a party or by which it is bound; (b) contravene or conflict with or constitute a violation of
any provision of any law, regulation, judgment, injunction, order or decree binding upon or applicable to the Seller or its Subsidiaries; (c) constitute a default (or would constitute a default with notice or lapse of time or both) under or
give rise to a right of termination, cancellation or acceleration or loss of any benefit under any material agreement, contract or other instrument binding upon the Seller or its Subsidiaries or under any material license, franchise, permit or other
similar authorization held by the Seller or its Subsidiaries; or (d) result in the creation or imposition of any Lien (as defined below) on any asset of the Seller or its Subsidiaries. For purposes of this Agreement, the term
“Lien” means, with respect to any material asset, any mortgage, lien, pledge, charge, security interest, claim or encumbrance of any kind in respect of such asset. 
 3.5 SEC Documents. The Seller is obligated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), to
file reports pursuant to Sections 13 or 15(d) thereof (all such reports filed or required to be filed by the Seller, including all exhibits thereto or incorporated therein by reference, and all documents filed by the Seller under the Securities Act
hereinafter called the “SEC Documents”). The Seller has filed all reports or other documents required to be filed under the Exchange Act. All SEC Documents filed by the Seller (i) were prepared in all material respects in
accordance with the requirements of the Exchange Act and (ii) did not at the time they were filed (or, if amended or superseded by a filing prior to the date hereof, then on the date of such filing) contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Seller has previously delivered or made available
to the Purchasers a correct and complete copy of each report which the Seller filed with the Commission under the Exchange Act for any period ending on or after December 31, 2005 (the “Recent Reports”). None of the information
about the Seller or any of its Subsidiaries which has been disclosed to the Purchasers herein or in the course of discussions and negotiations with respect hereto which is not disclosed in the Recent Reports is or was required to be so disclosed,
and no material non-public information has been disclosed to the Purchasers, except as contemplated by the letter agreement, dated as of March 14, 2007, by and among the Seller and the Purchasers (the “Letter Agreement”).

 3.6 Financial Statements. Each of (i) Seller’s audited consolidated balance sheet and related consolidated
statements of income, cash flows and changes in stockholders’ equity 

  

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(including the related notes) as of and for the years ended December 31, 2005 and December 31, 2004, as contained in the Recent Reports for such
periods and (ii) the Seller’s unaudited consolidated balance sheet and related consolidated statements of income and cash flows as of and for the nine months ended September 30, 2006 as contained in the Recent Reports (both of
(i) and (ii), collectively, the “Seller’s Financial Statements” or the “Financial Statements”) (x) present fairly in all material respects the financial position of the Seller and its Subsidiaries on
a consolidated basis as of the dates thereof and the results of operations, cash flows and stockholders’ equity as of and for each of the periods then ended, except that the unaudited financial statements are subject to normal year-end
adjustments, and (y) were prepared in accordance with United States generally accepted accounting principals (“GAAP”) applied on a consistent basis throughout the periods involved, in each case, except as otherwise indicated in
the notes thereto. 
 3.7 Compliance with Law. The Seller and its Subsidiaries are in compliance and have conducted their
business so as to comply with all laws, rules and regulations, judgments, decrees or orders of any court, administrative agency, commission, regulatory authority or other governmental authority or instrumentality, domestic or foreign, applicable to
their operations, except where the failure to so be in compliance would not have a Material Adverse Effect on the Seller. There are no judgments or orders, injunctions, decrees, stipulations or awards (whether rendered by a court or administrative
agency or by arbitration), against the Seller or its Subsidiaries or against any of their properties or businesses, the impact of which would have a Material Adverse Effect on the Seller. 
 3.8 No Undisclosed Liabilities. Except as set forth in the Recent Reports or in the disclosures provided to the Purchasers pursuant to the
Letter Agreement, and except for liabilities and obligations incurred since December 31, 2005 in the ordinary course of business, consistent with past practice, as of the date hereof, (i) the Seller and its Subsidiaries do not have any
material liabilities or obligations (absolute, accrued, contingent or otherwise), and (ii) there has not been any aspect of the prior or current conduct of the business of the Seller or its Subsidiaries which may form the basis for any material
claim by any third party which if asserted could result in any such material liabilities or obligations. 
 3.9 Preemptive
Rights. No Person possesses any right of first refusal, preemptive rights or similar rights in respect of (i) the Warrants or (ii) the Warrant Shares to be issued upon exercise of the Warrants. 
 3.10 Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection
with the transactions contemplated by this Agreement, based upon any arrangement made by or on behalf of the Seller, which would make any Purchaser liable for any fees or commissions. 
 3.11 Securities Laws. Neither the Seller nor its Subsidiaries, nor any agent acting on behalf of the Seller or its Subsidiaries, has taken
or will take any action which might cause this Agreement or the Warrants to violate the Securities Act or the Exchange Act or any rules or regulations promulgated thereunder, as in effect on the Closing Date. Assuming that all of the representations
and warranties of the Purchasers set forth in Article IV are true, all offers and sales of the Warrants were conducted and completed in compliance with the Securities Act. All 

  

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shares of capital stock and other securities issued by the Seller and its Subsidiaries prior to the date hereof have been issued in transactions that were
either registered offerings or were exempt from the registration requirements under the Securities Act and all applicable state securities or “blue sky” laws and in compliance with all applicable corporate laws. 
 3.12 Poison Pill. Except as otherwise provided for in Section 203 of the Delaware General Corporation Law, the Seller and its Board of
Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under
the Seller’s Certificate of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Seller fulfilling their obligations or
exercising their rights under this Agreement and the Related Documents, including without limitation the Company’s issuance of the Securities and the Purchasers’ ownership of the Securities. 
 ARTICLE IV—REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS 
 Each Purchaser, for itself only, severally and not jointly, hereby represents and warrants to the Seller as follows, as of the date hereof: 
 4.1 Existence and Power. The Purchaser, if not a natural person, is duly organized, validly existing and in good standing under the laws of the jurisdiction of such Purchaser’s organization. Such
Purchaser has all powers required to bind it to the representations, warranties and covenants set forth herein. 
 4.2
Authorization. The execution, delivery and performance by the Purchaser of this Agreement, the Related Documents to which such Purchaser is a party, and the consummation by the Purchaser of the transactions contemplated hereby and thereby
have been duly authorized, and no additional action is required for the approval of this Agreement or such Related Documents. This Agreement and the Related Documents to which the Purchaser is a party have been or, to the extent contemplated hereby,
will be duly executed and delivered and constitute valid and binding agreements of the Purchaser, enforceable against such Purchaser in accordance with their terms, except as may be limited by bankruptcy, reorganization, insolvency, moratorium and
similar laws of general application relating to or affecting the enforcement of rights of creditors and except that enforceability of their obligations thereunder are subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or at law). 
 4.3 Investment. The Purchaser is acquiring the securities described
herein for the Purchaser’s own account and not with a view to, or for sale in connection with, any distribution thereof, nor with the intention of distributing or reselling the same; provided, however, that by making the representation
in this Section 4.3, the Purchaser does not agree to hold any of the securities for any minimum or other specific term, and reserves the right to dispose of the securities at any time in accordance with or pursuant to a registration statement
or an exemption under the Securities Act. The Purchaser is aware that none of the securities has been registered under the Securities Act or under applicable state securities or blue sky laws. The Purchaser is an “Accredited
Investor” as such term is defined in Rule 501 of Regulation D, as promulgated under the Securities Act. 
  

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 4.4 Reliance on Exemptions. The Purchaser understands that the Warrants are being offered
and sold to such Purchaser in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Seller is relying upon the truth and accuracy of, and such Purchaser’s compliance
with, the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Securities.

 4.5 Experience of the Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. The Purchaser is
able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment. The Purchaser has had the opportunity to request, receive, review and consider all information it deems
relevant in making an informed decision to purchase the Warrants, including but not limited to the Recent Reports and the disclosures provided to the Purchaser pursuant to the Letter Agreement. The Purchaser has had an opportunity to discuss its
purchase of the Warrants and related matters with representatives of the Seller and ask questions of them and has received satisfactory answers and all information requested. 
 4.6 General Solicitation. The Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other
communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement. 
 ARTICLE V—CONDITIONS TO CLOSING 
 5.1 Conditions to Obligations of Purchasers to Effect the Closing. The obligations of a Purchaser to effect the Closing and the transactions contemplated by this Agreement shall be subject to the satisfaction at or prior to
the Closing, of each of the following conditions, any of which may be waived, in writing, by a Purchaser: 
 (a) The Seller shall deliver or
cause to be delivered to each of the Purchasers the following: 
 1. An original executed Common Stock Purchase Warrant,
substantially in the form of Exhibit A hereto, registered in the name of such Purchaser, pursuant to which such Purchaser shall be initially entitled to purchase that number of shares of Common Stock as set forth on Schedule 1.

 2. The Investor Rights Agreement, in the form attached hereto as Exhibit B (the “Investor Rights
Agreement”), duly executed by the Seller. 
  

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 3. A legal opinion or legal opinions from Nicolas J. Evanoff, the Seller’s General
Counsel, and/or Akin Gump Strauss Hauer & Feld LLP, the Seller’s outside counsel, with respect to the matters set forth in Exhibit C. 
 4. A certificate of the Secretary of the Seller (the “Secretary’s Certificate”), in form and substance satisfactory to the Purchasers, certifying as follows: 
 (i) that the Board of Directors of the Seller has duly authorized the execution, delivery and performance of this Agreement and the
Related Documents, instruments and certificates required to be executed by it in connection herewith and duly approved the consummation of the transactions in the manner contemplated hereby including, but not limited to, the authorization and
issuance of the Warrants and, as of the Closing Date, such authorization and approval remain in full force and effect; 
 (ii)
the names and true signatures of the officers of the Seller signing this Agreement and all other documents to be delivered in connection with this Agreement; and 
 (iii) such other matters as the Purchasers may reasonably request. 
 5. A wire transfer representing the Purchasers’ legal fees and other third-party expenses as described in Section 7.3 hereof.

 6. This Agreement, duly executed by the Seller. 
 7. Such other documents as the Purchasers shall reasonably request. 
 5.2 Conditions to Obligations of the Seller to Effect the Closing. The obligations of the Seller to effect the Closing and the transactions
contemplated by this Agreement shall be subject to the satisfaction at or prior to the Closing of each of the following conditions, any of which may be waived, in writing, by the Seller: 
 (a) Each of the Purchasers shall deliver or cause to be delivered to the Seller (i) payment of the Purchase Price set forth opposite such
Purchaser’s name on Schedule 1, in cash by wire transfer of immediately available funds; (ii) an executed copy of this Agreement; (iii) an executed copy of the Investor Rights Agreement; and (iv) such other documents as
the Seller shall reasonably request. 
 ARTICLE VI—INDEMNIFICATION, TERMINATION AND DAMAGES 
 6.1 Survival of Representations. The representations and warranties of the Seller and the Purchasers contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and the Closing Date and shall continue in full force and effect for a period of three (3) years from the Closing Date. The Seller’s and the Purchasers’ warranties
and representations shall in no way be affected or diminished in any way by any investigation of (or failure to investigate) the subject matter thereof made by or on behalf of the Seller or the Purchasers. 
  

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 6.2 Indemnification. 
 (a) The Seller agrees to indemnify and hold harmless the Purchasers, their Affiliates, each of their officers, directors, partners, members, employees and
agents and their respective successors and assigns, from and against any losses, damages, or expenses which are caused by or arise out of (i) any breach or default in the performance by the Seller of any covenant or agreement made by the Seller
in this Agreement or in any of the Related Documents; (ii) any breach of warranty or representation made by the Seller in this Agreement or in any of the Related Documents or (iii) any and all third party actions, suits, proceedings,
claims, demands, judgments, costs and expenses (including reasonable legal fees and expenses) incident to any of the foregoing. 
 (b) The
Purchasers, severally and not jointly, agree to indemnify and hold harmless the Seller, its Affiliates, each of their officers, directors, partners, members, employees and agents and their respective successors and assigns, from and against any
losses, damages, or expenses which are caused by or arise out of (A) any breach or default in the performance by the Purchasers of any covenant or agreement made by the Purchasers in this Agreement or in any of the Related Documents;
(B) any breach of warranty or representation made by the Purchasers in this Agreement or in any of the Related Documents; and (C) any and all third party actions, suits, proceedings, claims, demands, judgments, costs and expenses
(including reasonable legal fees and expenses) incident to any of the foregoing; provided, however, that a Purchaser’s liability under this Section 6.2(b) shall not exceed the Purchase Price paid by such Purchaser hereunder.

 6.3 Indemnity Procedure. A party or parties hereto agreeing to be responsible for or to indemnify against any matter
pursuant to this Agreement is referred to herein as the “Indemnifying Party” and the other party or parties claiming indemnity is referred to as the “Indemnified Party”. An Indemnified Party under this Agreement
shall, with respect to claims asserted against such party by any third party, give written notice to the Indemnifying Party of any liability which might give rise to a claim for indemnity under this Agreement within thirty (30) business days of
the receipt of any written claim from any such third party, but not later than twenty (20) days prior to the date any answer or responsive pleading is due, and with respect to other matters for which the Indemnified Party may seek
indemnification, give prompt written notice to the Indemnifying Party of any liability which might give rise to a claim for indemnity; provided, however, that any failure to give such notice will not waive any rights of the Indemnified Party
except to the extent the rights of the Indemnifying Party are materially prejudiced. 
 The Indemnifying Party shall have the right, at its
election, to take over the defense or settlement of such claim by giving written notice to the Indemnified Party at least fifteen (15) days prior to the time when an answer or other responsive pleading or notice with respect thereto is
required. If the Indemnifying Party makes such election, it may conduct the defense of such claim through counsel of its choosing (subject to the Indemnified Party’s approval of such counsel, which approval shall not be unreasonably withheld),
shall be solely responsible for the expenses of such defense and shall be bound by the results of its defense or settlement of the claim. The Indemnifying Party shall not settle any such claim without prior notice to and consultation with the
Indemnified Party, and no such settlement involving any equitable relief or which might have an adverse effect on the Indemnified Party may be agreed to without the 

  

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written consent of the Indemnified Party (which consent shall not be unreasonably withheld). So long as the Indemnifying Party is diligently contesting any
such claim in good faith, the Indemnified Party may pay or settle such claim only at its own expense and the Indemnifying Party will not be responsible for the fees of separate legal counsel to the Indemnified Party, unless the named parties to any
proceeding include both parties or representation of both parties by the same counsel would be inappropriate in the reasonable opinion of the Indemnified Party, due to conflicts of interest or otherwise. If the Indemnifying Party does not make such
election, or having made such election does not, in the reasonable opinion of the Indemnified Party proceed diligently to defend such claim, then the Indemnified Party may (after written notice to the Indemnifying Party), at the expense of the
Indemnifying Party, elect to take over the defense of and proceed to handle such claim in its discretion and the Indemnifying Party shall be bound by any defense or settlement that the Indemnified Party may make in good faith with respect to such
claim. In connection therewith, the Indemnifying Party will fully cooperate with the Indemnified Party should the Indemnified Party elect to take over the defense of any such claim. The parties agree to cooperate in defending such third party claims
and the Indemnified Party shall provide such cooperation and such access to its books, records and properties as the Indemnifying Party shall reasonably request with respect to any matter for which indemnification is sought hereunder; and the
parties hereto agree to cooperate with each other in order to ensure the proper and adequate defense thereof. 
 With regard to claims of
third parties for which indemnification is payable hereunder, such indemnification shall be paid by the Indemnifying Party upon the earlier to occur of: (i) the entry of a judgment against the Indemnified Party and the expiration of any
applicable appeal period, or if earlier, five (5) days prior to the date that the judgment creditor has the right to execute the judgment; (ii) the entry of an unappealable judgment or final appellate decision against the Indemnified
Party; or (iii) a settlement of the claim. Notwithstanding the foregoing, the reasonable expenses of counsel to the Indemnified Party shall be reimbursed on a current basis by the Indemnifying Party. With regard to other claims for which
indemnification is payable hereunder, such indemnification shall be paid promptly by the Indemnifying Party upon demand by the Indemnified Party. 
 ARTICLE VII—MISCELLANEOUS 
 7.1 Further Assurances. Each party agrees to cooperate fully with the other
parties and to execute such further instruments, documents and agreements and to give such further written assurances as may be reasonably requested by any other party to better evidence and reflect the transactions described herein and contemplated
hereby and to carry into effect the intents and purposes of this Agreement, and further agrees to take promptly, or cause to be taken, all actions, and to do promptly, or cause to be done, all things necessary, proper or advisable under applicable
law to consummate and make effective the transactions contemplated hereby, to obtain all necessary waivers, consents and approvals, to effect all necessary registrations and filings, and to remove any injunctions or other impediments or delays,
legal or otherwise, in order to consummate and make effective the transactions contemplated by this Agreement for the purpose of securing to the parties hereto the benefits contemplated by this Agreement. 
 7.2 (a) Securities Laws Disclosure; Publicity. The Seller shall within four business days after the Closing Date, file with the Commission
a Current Report on Form 8-K disclosing 

  

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the transactions contemplated hereby, except to the extent the transactions contemplated hereby are disclosed in the Seller’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2006. Except as provided in the preceding sentence, neither the Company nor the Purchasers shall make any press release or other public announcement of the terms of this Agreement or the transactions
contemplated hereby without the prior approval of the other, unless otherwise required by applicable law or the rules of the Commission or other applicable regulatory authority. 
 (b) Listing of Warrant Shares. Seller shall use its best efforts to obtain, as promptly as practicable, the approval of an application to
AMEX for the listing or qualification of the Warrant Shares for trading thereon. 
 7.3 Fees and Expenses. The Seller shall be
responsible for the payment of the Purchasers’ actual and reasonable legal fees and other third-party expenses relating to the preparation, negotiation and execution of this Agreement and the Related Documents and the consummation of the
transactions contemplated herein and therein. 
 7.4 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number
specified in this Section prior to 5:00 p.m. (New York City time) on a business day, (b) the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified in this
Section on a day that is not a business day or later than 5:00 p.m. (New York City time) on any business day, or (c) the business day following the date of mailing, if sent by U.S. nationally recognized overnight courier service such as Federal
Express. The address for such notices and communications shall be as follows: 
 If to the Purchasers at each Purchaser’s address set
forth under its name on Schedule 1 attached hereto, or with respect to the Seller, addressed to: 
  

					
		 	Transmeridian Exploration Incorporated	 	
		 	397 N. Sam Houston Pkwy E, Suite 300	 	
		 	Houston, Texas 77060	 	
		 	Attention: Chief Financial Officer	 	
		 	Facsimile No.: 281-999-9094	 	

 or to such other address or addresses or facsimile number
or numbers as any such party may most recently have designated in writing to the other parties hereto by such notice. Copies of notices to the Seller shall be sent to James L. Rice III, Akin Gump Strauss Hauer & Feld LLP, 1111 Louisiana
Street, 44th Floor, Houston, Texas 77002-5200, Facsimile No. 713-236-0822, provided, however, that such copies
shall not constitute notice for the purposes of this Agreement or otherwise. Copies of notices to any Purchaser shall be sent to the addresses, if any, listed on Schedule 1 attached hereto, provided, however, that such copies shall not
constitute notice for the purposes of this Agreement or otherwise. 
  

 - 11 - 

 Unless otherwise stated above, such communications shall be effective when they are received by the
addressee thereof in conformity with this section. Any party may change its address for such communications by giving notice thereof to the other parties in conformity with this section. 
 7.5 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed
by and enforced in accordance with the laws of the State of New York without reference to the conflicts of laws principles thereof. 
 7.6
Jurisdiction and Venue. This Agreement shall be subject to the exclusive jurisdiction of the Federal District Court, Southern District of New York and if such court does not have proper jurisdiction, the State Courts of New York County,
New York. The parties to this Agreement agree that any breach of any term or condition of this Agreement shall be deemed to be a breach occurring in the State of New York by virtue of a failure to perform an act required to be performed in the State
of New York and irrevocably and expressly agree to submit to the jurisdiction of the Federal District Court, Southern District of New York and if such court does not have proper jurisdiction, the State Courts of New York County, New York for the
purpose of resolving any disputes among the parties relating to this Agreement or the transactions contemplated hereby. The parties irrevocably waive, to the fullest extent permitted by law, any objection which they may now or hereafter have to the
laying of venue of any suit, action or proceeding arising out of or relating to this Agreement, or any judgment entered by any court in respect hereof brought in New York County, New York, and further irrevocably waive any claim that any suit,
action or proceeding brought in Federal District Court, Southern District of New York and if such court does not have proper jurisdiction, the State Courts of New York County, New York has been brought in an inconvenient forum. Each of the parties
hereto consents to process being served in any such suit, action or proceeding, by mailing a copy thereof to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 7.6 shall affect or limit any right to serve process in any other manner permitted by law. 
 7.7 Successors and Assigns. This Agreement is personal to each of the parties and may not be assigned without the written consent of the other parties; provided, however, that any of the
Purchasers shall be permitted to assign this Agreement to any Person to whom it assigns or transfers Securities in compliance with applicable securities laws. Any assignee must be an “accredited investor” as defined in Rule 501(a)
promulgated under the Securities Act. 
 7.8 Severability. If any provision of this Agreement, or the application thereof,
shall for any reason or to any extent be invalid or unenforceable, the remainder of this Agreement and application of such provision to other persons or circumstances shall continue in full force and effect and in no way be affected, impaired or
invalidated. 
 7.9 Entire Agreement. This Agreement, the Related Documents and the other agreements and instruments referenced
herein constitute the entire understanding and agreement of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings. 
  

 - 12 - 

 7.10 Other Remedies. Except as otherwise provided herein, any and all remedies herein
expressly conferred upon a party shall be deemed cumulative with and not exclusive of any other remedy conferred hereby or by law, or in equity on such party, and the exercise of any one remedy shall not preclude the exercise of any other.

 7.11 Amendment and Waivers. Any term or provision of this Agreement may be amended, the observance of any term of this
Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) and this Agreement may be amended or supplemented only by a writing signed by the Seller and the holders of Warrants representing at
least a majority of the aggregate number of Warrant Shares purchaseable pursuant to all Warrants then outstanding, and such waiver or amendment, as the case may be, shall be binding upon all Purchasers. The waiver by a party of any breach hereof or
default in the performance hereof shall not be deemed to constitute a waiver of any other default or any succeeding breach or default. No amendment shall be effected to impact a holder of Warrants in a disproportionately adverse fashion without the
consent of such individual holder of Warrants. 
 7.12 No Waiver. The failure of any party to enforce any of the provisions
hereof shall not be construed to be a waiver of the right of such party thereafter to enforce such provisions. 
 7.13 Counterparts;
Interpretation. This Agreement may be executed in any number of counterparts, each of which shall be an original as against any party whose signature appears thereon and all of which together shall constitute one and the same instrument.
This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as signatories. In the event that any signature is delivered by electronic
means, including electronic mail or facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile
signature page were an original thereof. Headings used in this Agreement are for convenience only, and will not affect the interpretation of this Agreement. Any form of the word “include” used in this Agreement shall be deemed to be
followed by the phrase “without limitation.” 
 7.14 No Third Party Beneficiary. Nothing expressed or implied in this
Agreement is intended, or shall be construed, to confer upon or give any person other than the parties hereto and their respective heirs, personal representatives, legal representatives, successors and permitted assigns, any rights or remedies under
or by reason of this Agreement. 
 7.15 Waiver of Trial by Jury. THE PARTIES HERETO IRREVOCABLY WAIVE TRIAL BY JURY IN ANY
SUIT, ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 7.16 Independent Nature of
Purchasers’ Obligations and Rights. The obligations of each Purchaser under this Agreement or any Related Documents are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way
for the performance of the obligations of any other Purchaser under any such agreement. Nothing contained herein or in any Related Documents, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way 

  

 - 13 - 

 
acting in concert or as a group with respect to such obligations or the transactions contemplated by such agreement. Each Purchaser shall be entitled to
independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Related Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in
any proceeding for such purpose. Each Purchaser represents that it has been represented by its own separate legal counsel in its review and negotiation of this Agreement and the Related Documents. For reasons of administrative convenience only, the
Purchasers acknowledge and agree that they and their respective counsel have chosen to communicate with the Company through Wiggin and Dana LLP, but Wiggin and Dana LLP does not represent any of the Purchasers in this transaction other than North
Sound Capital LLC. 
 [Signature page follows.] 
  

 - 14 - 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

 SELLER: 
  

			
	TRANSMERIDIAN EXPLORATION INCORPORATED
		
	By:	 	 /s/ Lorrie T. Olivier

	Name:	 	Lorrie T. Olivier
	Title:	 	President & CEO

  

 - 15 - 

 PURCHASERS: 
 Print
Exact Name: North Sound Legacy Institutional Fund LLC 
  

			
	By:	 	 /s/ Thomas Mcauley

	Name:	 	Thomas Mcauley
	Title:	 	Chief Investment Officer
		
	Address:	 	North Sound Capital LLC
		 	20 Horseneck Lane
		 	Greenwich, CT 06830
		
	Telephone:	 	203.340.5700
		
	Facsimile:	 	203.340.5701
		
	Email:	 	  

 Amount of Investment:$2,000,000 
 [Omnibus Transmeridian Exploration Incorporated Warrant Purchase Agreement Signature Page] 
  

 - 16 - 

 PURCHASERS: 
 Print
Exact Name: North Sound Legacy Institutional Fund LLC 
  

			
	By:	 	 /s/ Thomas Mcauley

	Name:	 	Thomas Mcauley
	Title:	 	Chief Investment Officer
		
	Address:	 	North Sound Capital LLC
		 	20 Horseneck Lane
		 	Greenwich, CT 06830
		
	Telephone:	 	203.340.5700
		
	Facsimile:	 	203.340.5701
		
	Email:	 	  

 Amount of Investment:$6,000,000 
 [Omnibus Transmeridian Exploration Incorporated Warrant Purchase Agreement Signature Page] 
  

 - 17 - 

 Schedule 1 
 to Warrant Purchase Agreement 
 Purchasers, Amount of Securities Purchased and Purchase Price 
  

								
	 Name, Address and Fax Number of Purchaser
and
Registration Instructions
	  	 Copies of Notices to
	  	Common
Stock
Underlying
Warrants	  	Purchase
Price
	 North Sound Legacy Institutional Fund LLC
 c/o
North Sound Capital LLC
 20 Horseneck Lane
 Greenwich, CT
06830
 Attn: Andrew David
 Tel:(203) 340-5784
 Fax: (203) 340-5701
 Email: andrew.david@northsound.com
	  	 Wiggin and Dana LLP
 400 Atlantic Street
 Stamford, CT 06901
 Attn: Michael Grundei
 Tel: (203) 363-7630
 Fax: (203) 363-7676
 mgrundei@wiggin.com
	  	2,125,000	  	$	2,000,000
				
	 North Sound Legacy International Ltd.
 c/o North
Sound Capital LLC
 20 Horseneck Lane
 Greenwich, CT
06830
 Attn: Andrew David
 Tel: (203) 340-5784
 Fax: (203) 340-5701
 Email: andrew.david@northsound.com
	  	 Wiggin and Dana LLP
 400 Atlantic Street
 Stamford, CT 06901
 Attn: Michael Grundei
 Tel: (203)363-7630
 Fax: (203)363-7676
 mgrundei@wiggin.com
	  	6,375,000	  	$	6,000,000
				
	Totals:	  		  	8,500,000	  	$	8,000,000Form of Non_Qualified Stock Option Agreement

 Exhibit 10.2 
 Form of Non-Qualified Stock Option Agreement 
 This Non-Qualified Stock Option Agreement (the
“Agreement”) is entered into and made as of             , 20     (the “Date of Grant”), between Transmeridian Exploration Incorporated,
a Delaware corporation (together with its affiliated entities, the “Company”), and              (the “Optionee”). The Optionee serves as
             of the Company, and the Company desires, pursuant to its 2006 Incentive Plan (the “Plan”), to afford an incentive to the Optionee by granting an option to
purchase shares of the common stock, par value $0.0006 per share, of the Company (the “Common Stock”). 
 1) Option Grant.
The Company hereby irrevocably grants to the Optionee the option to purchase              shares of Common Stock (the “Option”), subject to adjustment as provided in
Section 10 hereof, on the terms and conditions set forth herein. 
 2) Exercise Price. The exercise price of the Common Stock
covered by the Option shall be $             per share, subject to adjustment as provided in Section 10 hereof. 
 3) Term of Option. Unless earlier terminated pursuant to the provisions of this Agreement or the Plan, the unexercised portion of the Option shall
expire and cease to be exercisable at 5:00 p.m. Houston, Texas Time on the tenth anniversary of the Date of Grant (“Expiration Date”). In no event shall any other provision of this Agreement serve to extend the exercise period of the
Option beyond the Expiration Date. 
 4) Vesting of Option. The Option is exercisable only to the extent it is vested. Subject to
adjustment pursuant to Section 5, below, the shares subject to the Option shall vest cumulatively as follows:              on
            , 20    ,              on
            , 20     and              on
            , 20    , each as measured from the Date of Grant; provided that the Optionee shall have been continuously employed by, or providing services
to, the Company since the Date of Grant. 
 If the Optionee is a consultant to the Company, vesting shall occur under this section if the
Optionee is available to perform the consulting services contemplated under this Agreement on each such anniversary date, whether or not such services are actually being performed on these dates. In the event of a question as to whether the Optionee
is available to perform services to the Company, the decision of the Compensation Committee of the Board of Directors of the Company (the “Committee”), in its sole discretion, shall be binding. All or any part of the vested portion of the
Option may be exercised at any time in accordance with this Agreement. 
 5) Termination of Service. In the event of termination of
the Optionee’s service relationship (whether as an employee, director, advisor or consultant) with the Company before the Optionee has exercised the Option in full or the Option has expired pursuant to Section 3, the provisions of this
Section 5 shall apply. The terms, provisions and definitions of this Section 5 shall have application only for purposes of this Agreement and shall not have general application to the Optionee’s termination of service with the
Company. 

	 	a.	Termination by Death or Disability. If the Optionee’s service relationship is terminated as a result of the Optionee’s death or disability (as defined in the Plan),
then the Optionee shall, solely for the purpose of determining vesting under this Agreement, be credited with service through the next vesting date and the vested portion of the Option (including the portion vested as a result of such crediting of
service) shall remain exercisable for a period of one year from the date of the Optionee’s termination of service by reason of death or disability. 

  

	 	b.	Retirement from the Company. If the Optionee retires as an employee or director of the Company upon the attainment of at least 60 years of age with at least five continuous
years of service to the Company, the Option shall become fully vested and shall remain exercisable for a period of one year from the date of retirement. 

  

	 	c.	Termination for Cause. In the event that the Optionee’s service to the Company is terminated for Cause (as herein defined), the unexercised portion of the Option,
whether vested of unvested, shall immediately be terminated. To the extent that any exercise of the Option has not been completed or has been suspended pending the outcome of a review of the Optionee’s status with the Company by the Committee
relating to a potential termination for Cause, such pending exercise may be cancelled upon Optionee’s termination resulting from such Cause. In the event of such cancellation, any payment tendered to the Company for exercise of the Option shall
be returned to the Optionee. Solely for the purposes of this Agreement, “Cause” is defined as (i) gross negligence or willful misconduct in the performance or breach of duties required of the Optionee, (ii) conviction of a
felony, (iii) the material breach of any corporate policy or code of conduct established by the Company, including the disclosure of confidential information about the Company, or (iv) willful conduct that the Optionee knows or should know
is materially injurious to the Company. The Committee is solely responsible for the decision to terminate the Optionee for Cause and the Optionee must be notified in writing of such termination. 

  

	 	d.	 Termination Related to Unsatisfactory Performance. If the Optionee’s service relationship is terminated by the Company for Unsatisfactory Performance
(as herein defined), and the Optionee has completed at least one year of service to the Company, the Optionee shall, solely for purpose of determining vesting under this Agreement, be credited with an additional four months of service, and the
vested portion of the Option (including the portion vested as a result of such crediting of service) shall remain exercisable for a period of 180 days from the date of termination. If the Optionee has not completed one year of service to the
Company, the unvested portion of the Option shall immediately expire and cease to be exercisable. Any vested portion of the Option shall remain exercisable for a period of 180 days from the date of termination. Solely for the purposes of this
Agreement, “Unsatisfactory Performance” is defined as (i) failure to meet the minimum requirements of the position, (ii) excessive absenteeism, (iii) insubordinate behavior, (iv) behavior which is disruptive to the work
environment or detrimental to the performance of other employees, (v) negative comments about the Company to investors, customers or others outside the Company, (vi) breach of any corporate policy or code of conduct established by the
Company, or 

	 	 
(vii) failure to perform the duties and responsibilities required of the Optionee at substantially the same level of performance previously established by
the Optionee. The Optionee may be terminated for Unsatisfactory Performance by his or her direct supervisor. In the event that the Optionee does not agree with the reasons for such termination, the Optionee may appeal to the Committee, whose
decision in the matter shall be final. To the extent that the actions giving rise to termination of service may qualify as both for “Cause” and “Unsatisfactory Performance,” the Committee shall have the sole discretion to
determine which category shall apply to such termination. 

  

	 	e.	Other Termination by the Company. If the Optionee’s service relationship to the Company is terminated by the Company for any reason other than Cause or Unsatisfactory
Performance after the Optionee has completed one year of service, the Option shall become fully vested and shall be exercisable for a period of one year after the date of termination. If the Optionee has not completed one year of service at the time
of such termination by the Company, the Optionee shall, solely for the purpose of determining vesting under this Agreement, be credited with service through the next vesting date and the vested portion of the Option (including the portion vested as
a result of such crediting of service) shall remain exercisable for a period of one year from the date of termination. 

  

	 	f.	Voluntary Resignation. If the Optionee voluntarily resigns or otherwise terminates his service relationship to the Company, the unvested portion of the Option shall
immediately expire and cease to be exercisable. Any vested and unexercised portion of the Option shall remain exercisable for a period of 180 days from the date of voluntary resignation. 

  

	 	g.	Conduct by the Optionee. Notwithstanding the voluntary resignation or other termination of the Optionee, if the Company determines, prior to the delivery of shares upon any
exercise of the Option, that the Optionee has engaged in conduct which would justify termination for Cause or Unsatisfactory Performance, the vesting terms and exercise period of any portion of the Option for which the exercise has not been
completed may be retroactively extended to conform to the date of Optionee’s resignation or termination, with the effect that the Optionee’s rights in such shares shall expire on such date, and the Optionee shall not be entitled to receive
such shares. 

  

	 	h.	Employment Agreements. If the Optionee is a party to any employment or consulting agreement with the Company that provides for treatment of the Option that is inconsistent
with the provisions of this Section 5 or any other provision of this Agreement, the agreement providing the more favorable treatment to the Optionee shall prevail. 

  

	 	i.	Expiration of Option. If the Option is not exercised in accordance with the provisions of this Agreement during the period such Option remains exercisable pursuant to this
Section 5, the Option shall expire and cease to be exercisable. In no event shall any of the above provisions serve to extend the period of exercise beyond the Expiration Date. 

 6) Method of Exercise. The Optionee shall exercise the Option by delivering a signed, written
notice to the Company which states the election to exercise all or any part of the vested Option under this Agreement and the number of shares of Common Stock being purchased with respect thereto. Payment of the exercise price for the shares so
purchased and any required tax withholding shall be made by any of the following methods: 
  

	 	a.	Payment in Cash. The Optionee may deliver the required payment or payments in cash, check or cash equivalent. The Optionee is not required to deliver certified funds, but the
Company may delay delivery of the shares of Common Stock being purchased under the Option until it has received collected funds. 

  

	 	b.	Immediate Sales Proceeds. “Immediate Sales Proceeds” (sometimes referred to as “Broker-Assisted Cashless Exercise”), shall mean the assignment in a form
acceptable to the Company of the proceeds of a sale of some or all of the shares acquired upon the exercise of the Option pursuant to a program and/or procedure conducted through a registered securities brokerage firm approved by the Company. Such
procedure shall comply with the provisions of Regulation T of the Federal Reserve System, if applicable. The Company reserves the right, in its sole discretion, to decline to approve any such program and/or procedure. 

  

	 	c.	Tender of Company Shares. The Optionee may tender to the Company Qualified Shares of the Company’s Common Stock having a Fair Market Value not less than the exercise
price plus the amount of any required tax withholding. For purposes of this Agreement, “Qualified Shares” means shares of the Company’s Common Stock which have either (i) been owned by the Optionee for more than six months or
(ii) were not acquired, directly or indirectly, from the Company. For purposes of this Agreement, “Fair Market Value” is defined as the closing market price on the last trading day immediately preceding the date that written notice of
exercise is delivered to the Company. Notwithstanding the foregoing, the Option may not be exercised by tender of Company shares if such tender would constitute a violation of the provisions of any law or regulation, or would conflict with any
agreement or policy regarding the redemption of the Company’s Common Stock. 

  

	 	d.	Promissory Note. The Company may, in its sole discretion, permit the Optionee to satisfy the obligation for the exercise price and any required tax withholding through the
delivery of a promissory note or other deferred payment arrangement. The terms of such promissory note shall be set by the Committee, in its sole discretion, and must comply with the terms of the Plan and all laws and regulations. The Company
reserves the right, in its sole discretion, to decline to accept any such promissory note or other arrangement in payment for the obligations under this Agreement. 

  

	 	e.	Net Issuance of Shares. If the shares to be issued upon exercise of the Option are not registered under the Securities Act of 1933 (the “Act”) or are otherwise
restricted as to resale by the Optionee, the Committee may, in its sole discretion, permit the Optionee to satisfy the obligation for payment of the exercise price and any required tax withholding through a reduction in the number of shares
otherwise issuable upon exercise. Such reduction shall be based on the Fair Market Value of such shares. Under no circumstances shall the Committee be obligated to accept this method of exercise. 

	 	f.	Combination. Any of the foregoing methods that are permitted by their terms may be used by the Optionee in any combination. 

 7) Tax Status and Withholding. The provisions of the Code pertaining to Stock Options are complex, subject to varying interpretation and can have
significant tax implications for the Optionee. The Optionee is strongly urged to consult with the Optionee’s own tax advisors regarding the tax effects of the exercise of this Option. The Company specifically disclaims any undertaking or
obligation to advise the Optionee of these tax consequences and will not under any circumstances provide tax advice to the Optionee. 
 Upon
receipt of a written notice of exercise from the Optionee, the Company shall advise the Optionee of the amount of any required income or other tax withholding due upon exercise. The Optionee must make arrangements to pay this amount in addition to
the aggregate exercise price of the option shares in order to complete the exercise. The amount of the withholding shall be computed by the Company based on the guidance of its tax advisors and shall be presumed to be correct. If the Optionee is not
in agreement with such guidance, he or she may submit an opinion from a qualified tax advisor for the consideration of the Company. The Committee shall review such opinion and make a final decision, which decision shall be binding on the Optionee.

 8) Delivery of Shares; Registration. The Company shall deliver the shares of Common Stock upon exercise of the Option to the
Optionee as soon as practicable, but in any event with ten (10) days of the date of exercise. The Company intends that the shares issuable pursuant to this Option will be registered under a Form S-8 Registration Statement (“Form S-8”)
which covers the Plan. If such Form S-8 is effective, the Optionee has been or will be given and hereby acknowledges, prior to any exercise of the Option, the receipt of a Prospectus, which describes the Plan and provides disclosures about the
Company’s business and financial information, including risk factors related to the investment in its Common Stock. The Company does not represent or warrant that such Form S-8 will be effective on the date of exercise. If the shares issuable
upon exercise are not registered under a Form S-8 or are otherwise restricted as to resale by the Optionee under the provisions of the Act, the share certificates which are issued upon exercise of this Option will carry a restrictive legend, which
will indicate that they have not been registered under the Act or are otherwise restricted as to resale. Shares which are not registered or are otherwise restricted may not be readily marketable and the Optionee should be aware that he or she may be
required to bear the risk of an investment in the Common Stock for a period of at least one year, if not indefinitely. In this event, the Company may require the Optionee to make certain representations related to the investment in the
Company’s Common Stock. The Optionee is urged to seek financial and/or legal advice to assess the financial considerations and potential risk of the decision to exercise the Option. 
 9) Non-Transferability of Option. This Option is not transferable by the Optionee other than (i) by will or the laws of descent and
distribution, (ii) pursuant to a qualified domestic relations order, or (iii) as may be permitted under policies that may be adopted by the Committee in its sole discretion. Except as permitted by the preceding sentence, this Option, or
any right granted under this Agreement, shall not be transferred, assigned, pledged, hypothecated or 

 
disposed of in any other way (whether by operation of law or otherwise), or be subject to execution, attachment or similar process. Any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of the Option or of such other rights contrary to the provisions hereof, or to subject the Option and such other rights to execution, attachment or similar process, shall be null and void. 

10) Adjustment Provisions. In accordance with the provisions of the Plan, in the event of changes in the Common Stock by reason of any stock
split, combination of shares, stock dividend, reclassification, merger, consolidation, reorganization, recapitalization or similar adjustment prior to the delivery by the Company of all the shares covered by the Option, the Company shall make
appropriate adjustments to the number, class and purchase price of the shares which remain subject to the Option. The Company shall notify the Optionee in writing of any such adjustments. 
 11) Change in Status of the Company. In accordance with the provisions of the Plan, any Corporate Transaction or Change of Control (as such terms
are defined in the Plan) shall result in the modification of certain provisions of this Option. Unless the Option granted pursuant to this Agreement is assumed in a transaction to which Section 425(a) of the Code applies, if the Company shall
(i) merge or consolidate with another corporation under circumstances where the Company is not the surviving corporation, (ii) sell all, or substantially all, of its assets, or (iii) liquidate or dissolve, then the Option shall
terminate on the date and immediately prior to the time such merger, consolidation, sale, liquidation or dissolution becomes effective or is consummated, provided that the Optionee shall have the right immediately prior to the effectiveness or
consummation of such merger, consolidation, sale, liquidation or dissolution, to exercise any or all of the vested portion of the Option, unless such Option has otherwise expired or been terminated pursuant to its terms or the terms of the Plan or
this Agreement. In the event of such merger, consolidation, sale, liquidation or dissolution, any portion of an outstanding Option which would have vested within eighteen months of the date on which such merger, consolidation, sale, liquidation or
dissolution becomes effective or is consummated shall vest immediately prior to the effectiveness or consummation of such merger, consolidation, sale, liquidation or dissolution and shall be part of the vested portion of the Option which the
Optionee may exercise. Furthermore, the Board of Directors of the Company, in its sole discretion, shall be permitted under this Agreement to provide for immediate and full vesting of this Option in contemplation of and prior to consummation of any
change in status of the Company. 
 12) No Rights as a Shareholder. The Optionee shall have no rights and privileges of a shareholder
of the Company with respect to any of the shares subject to the Option unless and until such shares shall have been issued to the Optionee. Except as may be specifically provided in the Plan or this Agreement, including, without limitation, the
provisions of Section 10 hereof, the Optionee shall have no right to receive dividends on shares which have not been exercised, nor shall any adjustment be made for cash dividends or similar rights granted prior to the date of exercise of the
Option. 
 13) No Obligation to Maintain Relationship or Grant Options. Nothing contained in this Agreement or the Option granted
hereby shall obligate the Company in any way to continue 

 
the employment or other relationship of the Optionee to the Company, nor shall it interfere in any way with the right of the Company to terminate the
employment or services of the Optionee at any time. The Optionee also agrees and acknowledges that the grant of the Option is completely discretionary and that the Company is under no obligation to make any future grants of stock options to the
Optionee. 
 14) Incorporation of Plan Provisions. This Agreement is being entered into pursuant to, and is subject to, the terms and
provisions of the Plan, a copy of which has been provided to the Optionee. All of the terms and provisions of the Plan are incorporated herein by reference. Any amendments to the Plan which are made subsequent to the Date of Grant shall only be
binding if they are to the benefit of the Optionee. If the terms of this Agreement and the Plan are in conflict, such conflict shall generally be resolved in favor of the Optionee, subject to the final decision of the Committee, which decision shall
be binding on the Optionee. All matters of administration or interpretation of this Agreement or the Plan shall be determined by the Committee or by management of the Company to the extent such duties have been delegated by the Committee.

 15) Notices. Notices and other communications provided for herein shall be in writing and shall be hand delivered or sent by
certified mail, return receipt requested, to the appropriate address set forth below, subject to written notice of change of address given by any party to the other party, and such notices and communications shall be deemed to be given upon
dispatch: 
 If to the Company, to: 
 Transmeridian Exploration, Inc. 
 Attn: Chief Executive Officer 
 300 N. Sam Houston Pkwy E, Suite 300 
 Houston, Texas 77060 
 (281) 999-9091 (Phone) 
 (281) 999-9094 (Fax) 
 If to the Optionee, at the address stated below his or her signature on this
Agreement. 
 15. Governing Law; Severability. This Agreement shall be governed by and construed in accordance with the laws of the
State of Texas, without regard to conflicts of laws. If any provision of this Agreement or the Plan shall hereafter be held to be invalid, unenforceable or illegal, in whole or in part, in any jurisdiction under any circumstances for any reason,
such provision shall be reformed to the minimum extent necessary to cause such provision to be valid and enforceable, while preserving the intent of the parties. If such provision cannot be so reformed, such provision shall be severed from the
Agreement or the Plan and the remaining terms and provisions of the Agreement and the Plan shall remain valid and enforceable to the maximum extent possible. 
 16. Successors. The provisions of this Agreement shall be binding upon, and inure to the benefit of, all successors and assigns of the Company, and all successors and assigns of the 

 
Optionee, including, without limitation, his or her estate and the executors, administrators or trustees thereof, his or her heirs and legatees, and any
receiver, trustee in bankruptcy or representative of creditors of the Optionee. 
 17. Modification. This Agreement, together with the
Plan, constitutes the entire agreement and understanding between the parties hereto and when executed supercedes any prior oral or written agreements and understandings related to the Option. This Agreement may be modified or amended only by a
written instrument executed by the Company and the Optionee, except as specifically provided to the contrary by the Plan or this Agreement. 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

  

			
	TRANSMERIDIAN EXPLORATION INCORPORATED
		
	By:	 	  

		 	Lorrie T. Olivier
		 	President and Chief Executive Officer
	
	OPTIONEE
	
	  

	Print Name:
	
	Address:

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