Document:

Joint Venture Agreement

 Exhibit 10.2 
  
 *** indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission. A
complete copy of this agreement has been filed with the Securities and Exchange Commission. 
  
  
 JOINT VENTURE AGREEMENT 
  
 THIS AGREEMENT is made effective as of the 7th day of October, 2004, 
  
 BETWEEN: 
  
 YINKA FOLAWIYO PETROLEUM CO. LTD., a company incorporated and
existing under the laws of the Federal Republic of Nigeria, with offices at Yinka Folawiyo Plaza, 38, Warehouse Road, Apapa, Lagos, Nigeria (hereinafter referred to as “YFP”); and 
  
 SYNTROLEUM INTERNATIONAL HOLDINGS COMPANY, an exempted company with
limited liability organized under the laws of the Cayman Islands with offices at 4322 South 49th West Avenue, Tulsa,
Oklahoma 74107 and Syntroleum Nigeria Limited., a company incorporated and existing under the laws of the Federal Republic of Nigeria with its registered address at St. Nicholas House, 9th Floor, Catholic Mission Street, Lagos, Nigeria, (hereinafter collectively referred to as “Syntroleum”); 
  
 herein collectively referred to as the “Parties and individually as a “Party”
and 
  
 For Purposes of Section 9 of this Agreement only,
Syntroleum International Corporation, a corporation organized under the laws of the State of Delaware, United States of America with offices at 4322 South 49th West Avenue, Tulsa, Oklahoma 74107 
  
 WHEREAS, YFP is the sole holder of Oil Mining Lease 113 (the area of which was formerly comprised in Oil Prospecting License 309) offshore the Federal Republic of Nigeria (“OML 113 Lease”); 
  
 WHEREAS, Syntroleum and its parent companies owns the Syntroleum GTL Process which it expects
will be applicable to the development of the OML 113 Lease and has relationships in the international oil and gas industry necessary to attract a proficient and reputable international operator of offshore projects; and 
  
 WHEREAS, YFP and Syntroleum have entered into that certain Heads of Agreement dated August
27, 2004 (“Heads of Agreement”), pursuant to and subject to the terms of which Syntroleum desires to acquire, and YFP desires to transfer to Syntroleum Nigeria, Ltd., an undivided forty percent (40%) Participating Interest in and to the
OML 113 Lease; 
  
 Now therefore the Parties agree as follows: 
  
 ARTICLE 1 - DEFINITIONS AND INTERPRETATION 
  

	1.1	In this Agreement, including its recitals, the following expressions shall have the following respective meanings: 

  

	 	1.1.1	“Accounting Procedure” means the accounting procedure attached as Exhibit A to the Joint Operating Agreement. 

	 	1.1.2	“Additional Wells” means up to three additional wells which may be drilled by Syntroleum on the OML 113 Lease after the plugging and abandonment or temporary
abandonment of the Second Well. 

  

	 	1.1.3	“Affiliate” means in relation to any Party, any company, partnership or other entity that controls or is controlled by that Party or is controlled by a company,
partnership or other entity which controls that Party. “Control” means the right to exercise, directly or indirectly, more than 50% of the voting rights of a company or other entity. 

  

	 	1.1.4	“Agreements” means this Agreement, the Deed of Assignment, the Technical Assistance Agreement and the Joint Operating Agreement. 

  

	 	1.1.5	“Aje Commercial Bonus” means the amount of *** United States dollars *** payable by Syntroleum to YFP in accordance with the provisions of Section 4.2 of this
Agreement. 

  

	 	1.1.6	“Aje Field” means the Hydrocarbon accumulation located within the boundaries of the OML 113 Lease as more particularly described on the map attached hereto as
Exhibit A. 

  

	 	1.1.7	“Approval Authorities” means the Ministry of Petroleum Resources of the Federal Republic of Nigeria and such other governmental authorities whose consent is
required for the approval of the Deed of Assignment or any other Government agency the approval of which is required to fulfil any obligations of the Parties pursuant to this Agreement. 

  

	 	1.1.8	“Approval Date” means the date upon which the Approval Authorities grant approval of the Deed of Assignment affecting the transfer and assignment of the Assigned
Interests from YFP to Syntroleum and any assignees of Syntroleum, including the International Operator. 

  

	 	1.1.9	“Assigned Interests” means the interests in the OML 113 Lease assigned to Syntroleum by YFP pursuant to Section 2.1 below. 

  

	 	1.1.10	“Business Day” means any day other than (a) Saturday or Sunday or (b) any day on which banks in Lagos, Nigeria or New York, New York, United States are permitted or
required to be closed. 

  

	 	1.1.11	“Capital Costs” means all costs and expenditures incurred pursuant to the Agreements and which qualify to be treated as qualifying capital expenditures under the
provisions of the PPTA or CITA. Notwithstanding the foregoing, for the purpose of calculating YFP’s share of Operating Costs after Project Payout all drilling costs shall be treated as Capital Costs ***. 

  

	 	1.1.12	“Capital Paying Interest” means the respective obligations of the Parties to be liable for and to pay all costs and expenses that are Capital Costs associated with
any and all operations conducted upon the OML 113 Lease or in relation to the OML 113 Lease pursuant to the Joint Operating Agreement and expressed as a percentage of such costs and expenses and determined in accordance with the provisions of
Article 2 of this Agreement. 

  

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	 	1.1.13	“CITA” means the Companies Income Tax Act, CAP.60 Laws of the Federal Republic of Nigeria, as amended from time to time. 

  

	 	1.1.14	“Commercial Discovery” means any accumulation of Hydrocarbons located on the OML 113 Lease that Syntroleum, in its sole discretion, based on Syntroleum’s
drilling operations on OML 113, deems to have sufficient commercial worth to Syntroleum to warrant the preparation and submission of a plan of development in respect of such Hydrocarbon accumulation to the Approval Authorities for their approval.

  

	 	1.1.15	“Commercial Production” means the production of Hydrocarbons from a Commercial Discovery. 

  

	 	1.1.16	“Concession” means OML 113, and any and all extensions, renewals or amendments of OML 113 agreed to in writing by the Parties and the Government.

  

	 	1.1.17	“Cost Recovery Account” means an account established by Syntroleum and YFP in accordance with the provisions of this Agreement and the Accounting Procedure that
will receive *** percent *** of the net proceeds from the sale of Hydrocarbon production and associated Hydrocarbon products after deduction of the Royalty. 

  

	 	1.1.18	“Crude Oil” means hydrocarbons which are produced at the wellhead in liquid state at atmospheric pressure, including crude mineral oil, asphalt, and ozokerites and
the liquid hydrocarbons known as condensate and Natural Gas liquids obtained from Natural Gas by condensation, cryogenic process or extraction through separation units. 

  

	 	1.1.19	“Declaration of Commerciality” means the written declaration to YFP made in the sole discretion of Syntroleum after the completion of the drilling of either the
Initial Well, the Second Well, or any of the Additional Wells that the Aje Field is a commercial field and warrants the preparation and submission of a plan of development to the Approval Authorities for their approval. 

  

	 	1.1.20	“Deed of Assignment” means the deed of assignment attached hereto as Exhibit “B”. 

  

	 	1.1.21	“Effective Date” means October 7, 2004. 

  

	 	1.1.22	“Excess Signature Bonus” means that cash amount, if any, in excess of *** dollars *** received by Syntroleum as a Signature Bonus. 

  

	 	1.1.23	“Exploration Well” means any well whose purpose at the time of the commencement of drilling is to explore for an accumulation of Hydrocarbons whose existence was at
that time as yet unproven by drilling. 

  

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	 	1.1.24	“Government” means the government of the Federal Republic of Nigeria and any political subdivision, agency, instrumentality, ministry, state owned or operated oil
company, agency, or organization, department, office or bureau of such government, including without limitation, the Nigerian National Petroleum Corporation and its Affiliates. 

  

	 	1.1.25	“Governmental Delay” means any delay suffered by Syntroleum in the performance of its obligations under this Agreement caused by the relevant agencies of the
Government failing to grant timely approval of the environmental impact assessment or any permits required in order for Syntroleum to perform its obligations under this Agreement. 

  

	 	1.1.26	“Hydrocarbons” means Crude Oil, Natural Gas and the products resulting from the processing of Natural Gas using the Syntroleum GTL Process 

 

	 	1.1.27	“Initial Well” means a well within the Aje Field, the drilling of which is commenced in accordance with and subject to the provisions of Section 3.1.

  

	 	1.1.28	“International Operator” means a recognized international oil and gas company with a demonstrated proficiency and reputation for conducting international offshore
oil and gas projects, including its affiliate existing under the laws of the Federal Republic of Nigeria, that has been approved by each of YFP and Syntroleum, their approval of which is not to be unreasonably withheld or delayed.

  

	 	1.1.29	“Joint Operating Agreement” means the agreement between YFP, Syntroleum and the International Operator governing operations in the OML 113 Lease, such agreement to
be negotiated by the parties, as such agreement may be amended from time to time hereafter. The basis for such agreement shall be the 1995 Model Form International Operating Agreement of the Association of International Petroleum Negotiators.

  

	 	1.1.30	“Joint Operations” means Joint Operations, as defined in the Joint Operating Agreement. 

  

	 	1.1.31	“Letter of Credit” means a letter of credit in a form and from a bank acceptable to the Parties in the amount of ten million dollars (US$10,000,000) including the
terms and conditions as set forth in Section 4.1. 

  

	 	1.1.32	“Natural Gas” means those hydrocarbons that at atmospheric conditions of temperature and pressure are in a gaseous phase, including wet mineral gas, and dry mineral
gas, wet gas and residual gas remaining after the extraction or separation of liquid Hydrocarbons from wet gas, as well as non-hydrocarbon gas or gases produced in association with liquid or gaseous Hydrocarbons. 

  

	 	1.1.33	“Notice” means a notice in writing delivered in accordance with the provisions of Article 16. 

  

	 	1.1.34	“OML” means an Oil Mining Lease issued by the Government. 

  

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	 	1.1.35	“OML 113 Lease” means Oil Mining Lease No. 113 issued by the Government to YFP, and all amendments, renewals and extensions thereto and includes the area currently
comprised in OML 113. 

  

	 	1.1.36	“Operating Costs” means all costs and expenditures other than those treated as qualifying capital expenditures under the PPTA or CITA and are incurred pursuant to
the terms of the Agreements for the purpose of carrying out Joint Operations 

  

	 	1.1.37	“Operating Paying Interest” means the respective obligations of the Parties to be liable for and to pay all of the costs and expenses that are Operating Costs
associated with any and all operations conducted upon the OML 113 Lease or in relation to the OML 113 Lease pursuant to the Joint Operating Agreement and expressed as a percentage of such costs and expenses to be determined in accordance with the
provisions of Article 2 of this Agreement. 

  

	 	1.1.38	“Operator” means the company or other entity designated to conduct operations on the OML 113 Lease from time to time pursuant to the Joint Operating Agreement.

  

	 	1.1.39	“Participating Interest” means the percentage share of a Party in the undivided ownership, rights, benefits, duties, obligations and liabilities granted by the
Government in the title to the OML 113 Lease, and a corresponding interest in the Joint Operating Agreement. 

  

	 	1.1.40	“Parties” means the parties to this Agreement and “Party” means any one of them. 

  

	 	1.1.41	“Paying Interest” means the respective obligations of the Parties to be liable for and to pay the costs and expenses associated with any and all operations
conducted upon the OML 113 Lease or in relation to the OML 113 Lease pursuant to the Joint Operating Agreement and expressed as a percentage of such costs and expenses and determined in accordance with the provisions of Article 2 of this Agreement
and includes a Party’s Capital Paying Interest and Operating Paying Interest. 

  

	 	1.1.42	“PPTA” means the Petroleum Profits Tax Act Cap. 354 of the laws of the Federal Republic of Nigeria (LFN) 1990 as amended from time to time.

  

	 	1.1.43	“Profit Account” means an account established by Syntroleum and YFP in accordance with the provisions of this Agreement and the Accounting Procedure that will
receive *** percent *** of the net proceeds from the sale of Hydrocarbon production and associated Hydrocarbon products after deduction of the Royalty. 

  

	 	1.1.44	“Project Payout” means the date or dates upon which Syntroleum’s cumulative net cash flow for the OML 113 Lease, equals (i) the cumulative total of costs
incurred by Syntroleum for the delineation, drilling, producing, operating, processing (including but not limited to, costs involved in the processing of the produced natural gas using the Syntroleum GTL Process), (ii) all Capital Costs, and
Operating Costs, incurred by Syntroleum with respect to the OML 113 Lease prior to any such date, and (iii) Syntroleum’s share of the Prior Costs, but (iv) excluding any Signature Bonus and any Aje Commercial Bonus. 

  

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	 	1.1.45	“Prior Costs” means those cost incurred prior to the Effective Date by YFP or its assignees in exploring and operating the OML 113 Lease including but not limited
to, the costs incurred in drilling the wells identified as the Aje #1 and Aje #2 wells on the OML 113 Lease and all 2-D and 3-D seismic acquired with respect to the OML 113 Lease, but excluding any Signature Bonus which at the date of this agreement
are agreed to be US$***, and subject to the Prior Costs Adjustment, shall be allocated in an amount equal to *** percent *** of the total of such costs to Syntroleum and in an amount equal to *** percent *** of the total of such costs to YFP.
Syntroleum shall have the right to audit the books of YFP to verify the amount of the Prior Costs. The Parties agree that, for the calculation of taxes under the PPTA, the Prior Costs shall be applied to production of Hydrocarbons from the OML 113
Lease exclusively. 

  

	 	1.1.46	“Prior Costs Adjustment” means a reduction of the Prior Costs recoverable by Syntroleum and an increase in the Prior Costs recoverable by YFP by the Prior Costs
Adjustment Amount. 

  

	 	1.1.47	“Prior Costs Adjustment Amount” means an amount determined by multiplying by *** the amount, if any, by which the cumulative total of the Excess Signature Bonuses
paid by Syntroleum to YFP in accordance with Section 4.5 is less than *** dollars (US$ ***). 

  

	 	1.1.48	“Revenue Interest” means at any point in time the percentage of the total of all Hydrocarbons produced and saved from the OML 113 Lease (after the deduction
therefrom of any and all Royalties and other amounts assessed against such production and payable to the Government) which a Party is entitled to receive pursuant to the provisions of the Joint Operating Agreement and Article 2 of this Agreement,
being the sum of such Party’s share of the Cost Recovery Account and the Profit Account. 

  

	 	1.1.49	“Rig Unavailability” means that Syntroleum has made a reasonable commercial effort but has been unable to enter into a contract for a suitable drilling rig by the
date that is one hundred and twenty (120) days before the one year anniversary date of the Approval Date that, in accordance with good international petroleum industry practices and standards, meets all of the following conditions: (a) designed,
equipped, and staffed to operate in the environment in which it will be operating; (b) designed to safely, effectively and efficiently drill to the minimum agreed depth of the Initial Well, Second Well or Additional Wells, as the case may be; (c)
capable of performing such functions and other activities as may be reasonably necessary or desirable in connection with the drilling, logging and testing of the wells; (d) available to be on the well location within the OML 113 Lease to commence
drilling operations within thirty (30) days of the date specified for the commencement of such drilling operations in the work program and budget approved in accordance with provisions of the JOA; and (e) may be leased under the generally accepted
terms and conditions of an international drilling rig contract and providing for a contract lease rate which is not in excess of the prevailing rate for such rigs, including charges for mobilization and demobilization. 

  

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	 	1.1.50	“Royalty” means the amount of royalty payable to the Government pursuant to the applicable laws and regulations of the Federal Republic of Nigeria, as amended from
time to time on production of Hydrocarbons from the OML 113 Lease. 

  

	 	1.1.51	“Second Well” means the second well that may be drilled by Syntroleum in accordance with and subject to the provisions of Section 3.2. 

  

	 	1.1.52	“Signature Bonus” means the cash consideration paid to Syntroleum at closing, by the International Operator or other third party included in the initial Deed of
Assignment submitted to the Approval Authorities prior to the Approval Date, for the transfer and assignment by Syntroleum to the International Operator or such other third party of a portion of the Assigned Interests. 

  

	 	1.1.53	“Shallow Water Option” means the right of YFP to make a one-time election to increase its Revenue Interest in the Shallow Water Option Area pursuant to the
provisions of Section 2.3. 

  

	 	1.1.54	“Shallow Water Option Area” means that portion of the OML 113 Lease Area that is both (i) outside of the boundaries of the Aje Field, and (ii) at a water depth of
less than 100 meters. 

  

	 	1.1.55	“Syntroleum Cost Sharing Interest” means Syntroleum’s share of both Capital Costs and Operating Costs as defined in Article 2 of this Agreement.

  

	 	1.1.56	“Syntroleum GTL Process” means the proprietary natural gas to liquids conversion process that is owned by Syntroleum and its parent companies.

  

	 	1.1.57	“Syntroleum Revenue Interest” means Syntroleum’s share of both the Cost Recovery Account and the Profit Account as defined in Article 2 of this Agreement.

  

	 	1.1.58	“Technical Advisor” means the Party designated in the Technical Services Agreement to act as Technical Advisor in accordance with the provisions of that agreement
and to provide assistance to YFP in the conduct of petroleum operations associated with the OML 113 Lease pursuant to the terms of the Joint Operating Agreement. 

  

	 	1.1.59	“Technical Services Agreement” means the agreement between YFP and the Technical Advisor as contemplated by Section 3.1. 

  

	 	1.1.60	“YFP Cost Recovery Payout” means the date or dates upon which YFP’s cumulative net cash flow allocated to YFP from the Cost Recovery Account attributable to
the YFP Cost Recovery Percentage equals YFP’s final share of the Prior Costs. 

  

	 	1.1.61	“YFP Cost Recovery Percentage” means *** percent (***) of the Cost Recovery Account in accordance with Section 2.1. 

  

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	 	1.1.62	“YFP Cost Sharing Interest” means YFP’s share of both Capital Costs and Operating Costs as defined in Article 2 of this Agreement. 

  

	 	1.1.63	“YFP Revenue Interest” means YFP’s share of both the Cost Recovery Account and the Profit Account as defined in Article 2 of this Agreement.

  

	1.2	All references to articles, sections, recitals and schedules are, unless otherwise expressly stated, references to clauses of, and recitals and schedules to, this Agreement.

  

	1.3	The headings in this Agreement are inserted for convenience only and shall be ignored in construing this Agreement. 

  

	1.4	Any reference to laws or regulations shall be a reference to the same as amended, supplemented or re-enacted from time to time. 

  

	1.5	Unless the context otherwise requires, reference to the singular shall include a reference to the plural and vice-versa; and reference to any gender shall include a reference to
both genders. 

  

	1.6	Where a word or phrase is defined, its other grammatical forms shall have a corresponding meaning. 

  

	1.7	Unless otherwise expressly stated, references to currency shall mean currency of the United States of America. 

  

	1.8	In the event of any conflict between the provisions of this Agreement and the provisions of the Joint Operating Agreement or the Technical Services Agreement, the provisions of this
Agreement shall prevail. 

  

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 ARTICLE 2 – ASSIGNMENT AND CONVEYANCE OF ASSIGNED INTERESTS 
  

	2.1	YFP hereby obligates itself to assign and convey to Syntroleum subject to the provisions of Section 2.2 and 2.3 below an undivided forty percent (40%) Participating Interest in the
OML 113 Lease pursuant to the Deed of Assignment, and hereby assigns and conveys the Syntroleum Revenue Interest and the Syntroleum Cost Sharing Interest in the OML 113 Lease. The Syntroleum Participating Interest, Syntroleum Revenue Interest,
Syntroleum Cost Sharing Interest, YFP Participating Interest, the YFP Revenue Interest and the YFP Cost Sharing Interest are shown in the following tables and expressed as a percent of one hundred percent: 

  
 Before YFP Cost Recovery Payout and before Project Payout 

 
 *** 
  
 After YFP Cost Recovery Payout but before Project Payout 
  
 *** 
  
 After Project Payout 
  
 *** 

	*	If YFP has unrecovered Operating Costs after Project Payout then YFP shall be entitled to receive its *** percent (***) interest share of revenues in the Cost Recovery Account until
such time as it recovers its share of Operating Costs. In the event that YFP has recovered its Operating Costs and there remains excess cost recovery amounts otherwise allocable to YFP they shall be allocated to Syntroleum until such time as
Syntroleum has recovered all of its share of Capital Costs and Operating Costs. In the event that YFP and Syntroleum have recovered their respective shares of Capital Costs and Operating Costs then any excess amounts remaining in the Cost Recovery
Account shall be transferred to the Profit Account and distributed to YFP and Syntroleum as provided above. 

  

	**	In the event that at any time after the initial Project Payout has been achieved Syntroleum’s cumulative net cash flow for the OML 113 Lease becomes negative then the Revenue
and Cost Sharing Interests of the Parties shall revert to those set forth under the table labelled “After YFP Cost Recovery Payout but Before Project Payout” until such time as Project Payout is again achieved. 

  

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	2.2	The obligation of YFP under section 2.1 to transfer and assign to Syntroleum the Participating Interest, the Syntroleum Revenue Interest and the Syntroleum Cost Sharing Interest
shall be irrevocable by YFP, provided, however, that YFP shall not be obligated to deliver to the Approval Authorities for their approval the Deed of Assignment evidencing the transfer and assignment of the Participating Interest in the OML 113
Lease to Syntroleum until the first to occur of (i) an International Operator has become a party to the Agreements, or (ii) Syntroleum has drilled the Initial Well in accordance with and subject to the provisions of Section 3.1. It is the intention
of the Parties that the International Operator upon its selection will ratify and become a party to this Agreement, or the Parties and the International Operator may enter into a mutually acceptable agreement that supersedes and replaces this
Agreement. Syntroleum shall identify and propose the International Operator, and the Parties shall meet together from time to time to review and evaluate proposals from candidates for International Operator and shall mutually agree and approve the
selection of such International Operator, said approval not to be unreasonably withheld or delayed by either Party. 

  

	2.3	YFP shall, with respect only to the first Exploration Well drilled within the Shallow Water Option Area, have the one time right, prior to the setting of the casing on that first
Exploration Well, to elect to convert its Paying Interest with respect to the Shallow Water Option Area to a *** percent Paying Interest in respect of all operations therein and a *** percent (***) Revenue Interest in respect of all net proceeds
from the sale of Hydrocarbons therefrom. In the event that YFP elects to exercise its right granted under this Section 2.3, the Paying Interest of YFP for the Shallow Water Option Area shall be *** percent (***) thereafter and the Paying Interest of
Syntroleum shall be *** percent (***) thereafter. Syntroleum shall give Notice to YFP that it has reached the casing point and YFP must make its written election to Syntroleum to exercise the Shallow Water Option within twenty-four hours thereafter.
In the event that YFP fails to exercise its Shallow Water Option as provided within this Section 2.3, the Shallow Water Option shall expire and YFP shall have no further rights to modify its Paying Interest and Revenue Interest in OML 113. If YFP
exercises the Shallow Water Option, the provisions of the Joint Operating Agreement shall apply mutatis mutandis to the Shallow Water Option Area except that the interests of the Parties in that Shallow Water Option Area shall be as follows:

  
 Shallow Water Option Area 
  
 *** 
  

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	2.4	In addition to the transfer and assignment to Syntroleum of the Assigned Interests YFP shall also allocate to Syntroleum to the extent permitted by Nigerian law the Syntroleum share
of the Prior Costs as determined pursuant to this Agreement. 

  

	2.5	Subject to the provisions of Section 2.2, the Assigned Interests shall be assigned and conveyed as follows: 

  

	 	2.5.1	YFP and Syntroleum shall execute all such deeds, assignments, instruments, assurances, consents and other documents and do all such other things as are necessary or, in
Syntroleum’s opinion, desirable in order to obtain all necessary Government approvals to the assignment and conveyance to Syntroleum of the Assigned Interests on the terms contemplated by this Agreement, the Joint Operating Agreement and the
Technical Services Agreement. 

  

	 	2.5.2	YFP shall, within five Business Days of the execution of the Agreements by the Parties and by the International Operator, submit the Deed of Assignment and any of the other
Agreements as may be required and all other necessary documentation to the Approval Authorities as may be required for approval of the Deed of Assignment. If Syntroleum drills the Initial Well without having an International Operator having been
selected by YFP and Syntroleum as contemplated by Section 3.1, then YFP shall, within five Business Days of the written request of Syntroleum, submit the Deed of Assignment and any other of the Agreements as may be required to the Approval
Authorities. YFP will immediately notify Syntroleum if the Approval Authorities require any additional documentation or information in connection the granting or withholding of such approval and Syntroleum will provide such additional documentation
or information as may be reasonably requested. 

  

	 	2.5.3	Syntroleum shall bear and pay for its own account any fees or charges assessed by the Government in accordance with applicable laws or regulations in connection with the approvals
and registrations of the documentation referred to in Subsection 2.5.2. 

  

	 	2.5.4	YFP shall use its reasonable commercial efforts to obtain any and all required approvals from the Approval Authorities for the Assigned Interests. 

  

	 	2.5.5	Until any required approvals from the Approval Authorities for any of the Assigned Interests have been obtained, YFP shall hold such Assigned Interests in trust for Syntroleum.
During any time during which such Assigned Interests are held in trust pursuant to this Section, YFP shall in good faith perform all acts and things required to be done under the Concession to maintain it in good standing and shall promptly advise
Syntroleum of any notice which it receives requiring that some act or thing be done which affects, or may affect, or is in relation to the OML 113 Lease. 

  

	2.6	The respective interests of the Parties in each item of Joint Property, as defined in the Joint Operating Agreement, shall be as provided in the Joint Operating Agreement. YFP shall
have the right to use any geologic, geophysical or engineering data as provided in the Joint Operating Agreement. Syntroleum shall provide YFP a copy of the 3-D pre-stack depth migrated geophysical data set within a reasonable time period after
execution of this Agreement. 

  

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 ARTICLE 3 – WORK OBLIGATIONS 
  

	3.1	No later than January 15, 2005 Syntroleum and YFP shall agree upon the selection of the International Operator, or Syntroleum shall commit to drill the Initial Well without the
presence of the International Operator. By February 15, 2005 YFP, Syntroleum and the International Operator, if any, shall agree and execute the Agreements not previously executed and YFP shall file the Deed of Assignment as provided in Section
2.5.2. The Technical Services Agreement shall provide that the Technical Advisor shall render assistance to YFP in the conduct of petroleum operations associated with the OML 113 Lease in accordance with the Joint Operating Agreement. Subject to the
provisions below Syntroleum will commence or cause to be commenced the drilling of the Initial Well by February 15, 2006. If the Approval Date is a date in excess of ninety (90) days from the date that YFP files the Deed of Assignment, the February
15, 2006 date to commence the drilling of the Initial Well shall be extended by a period of time equal to the number of days in excess of ninety (90) days between the filing of the Deed of Assignment by YFP and the Approval Date. In addition, the
obligation of Syntroleum to commence or cause to be commenced the drilling of the Initial Well may be extended by reasons of Force Majeure, Rig Unavailability or Governmental Delay. Syntroleum may at any time after the completion of the drilling of
the Initial Well determine to terminate its participation in the OML 113 Lease and in the event it so elects, shall reassign and re-convey the Assigned Interests to YFP at no cost to YFP. 

  

	3.2	Subject to the provisions of Section 3.1 above, within twelve months of the plugging and abandonment or temporary abandonment of the Initial Well, Syntroleum will commence or cause
to be commenced the drilling of the Second Well. The obligation of Syntroleum to commence or cause to be commenced the drilling of the Second Well may be extended by reasons of Force Majeure, Rig Unavailability or Governmental Delay. If the
Declaration of Commerciality is delivered by Syntroleum after the completion of the drilling of the Initial Well, then Syntroleum will drill a Second Well at a location outside of the boundaries of the Aje Field to be selected by Syntroleum in order
to test a geological structure within the OML 113 Lease other than the Aje Field. In the event that Syntroleum does not deliver to YFP a Declaration of Commerciality after the Initial Well the location of the Second Well may be drilled at any
location selected by Syntroleum on the OML 113 Lease. If Syntroleum fails to commence the drilling of the Second Well within twelve months after the completion of the drilling of the Initial Well as such time period may be extended as provided in
this Section 3.2, then Syntroleum shall cease to have any rights or obligations in respect of the OML 113 Lease and shall reassign and re-convey the Assigned Interests to YFP at no cost to YFP. 

  

	3.3	Syntroleum may at any time after the completion of the drilling of the Initial Well provide YFP with a Declaration of Commerciality. Production, from the OML 113 Lease shall not
commence until a Declaration of Commerciality has been delivered by Syntroleum to YFP. 

  

	3.4	Within six months of the plugging and abandonment or temporary abandonment of the Second Well, Syntroleum may at its sole election either (a) terminate its rights under the
Agreements and then reassign and re-convey its Assigned Interests to YFP at no cost to YFP; or (b) provide a written declaration to YFP that the OML 113 Lease is provisionally 

  

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 commercial, pay to YFP upon such Notice the Aje Commercial Bonus, and agree to drill the Additional
Wells. Each Additional Well will be spudded within twelve months of the plugging and abandonment or temporary abandonment of the previous Additional Well. Within six months of the plugging and abandonment or temporary abandonment of each of the
Additional Wells, Syntroleum shall either (i) terminate its rights under the Agreements and then reassign and re-convey its Assigned Interests in the OML 113 Lease; (ii) provide the Declaration of Commerciality to YFP, or (iii) if all three
Additional Wells have not been drilled, elect to drill an Additional Well. 
  

	3.5	Prior to the execution of the Joint Operating Agreement, Syntroleum, in consultation with YFP, will prepare the OML 113 annual work program and budget and will appear with YFP
before the Government as required to maintain the OML 113 Lease in good standing. 

  
 ARTICLE 4 – PAYMENTS TO YFP 
  

	4.1	No later than January 15, 2005, Syntroleum will provide to YFP the Letter of Credit. In the event that such Letter of Credit is not provided by January 15, 2005 then this Agreement
shall terminate and Syntroleum shall have no further rights to participate in OML 113. The Letter of Credit shall provide that in the event that Syntroleum does not spud the Initial Well in accordance with the provisions of, and within the time
period provided in Section 3.1 then YFP shall be entitled to receive payment as liquidated damages of ten million dollars (US $10,000,000) by exercising its rights to receive payment under the terms of the Letter of Credit. The Letter of Credit
shall provide that it shall terminate upon the abandonment or temporary abandonment of the Initial Well. In the event that Syntroleum fails to spud the Initial Well in accordance with the provisions of Section 3.1 YFP shall provide ten days (10)
prior written notice to Syntroleum of its intention to draw on the Letter of Credit. The Letter of Credit shall provide that the spudding, abandonment or temporary abandonment of the Initial Well shall be conclusively evidenced by the delivery to
YFP by Syntroleum of a copy of the daily drilling report prepared by the drilling contractor selected by the Operator or Syntroleum indicating the date on which the Initial Well has been spudded, abandoned or temporarily abandoned. Syntroleum will
have the right to draw against the Letter of Credit to pay the costs of drilling the Initial Well. If YFP exercises its rights to receive liquidated damages under the Letter of Credit as a result of a failure by Syntroleum to spud the Initial Well
within the period provided in Section 3.1 then Syntroleum will, if the Participating Interest has been previously assigned to Syntroleum, reassign and re-convey its Assigned Interests to YFP at no cost to YFP. The only liability Syntroleum shall
have to YFP for a failure to spud the Initial Well within the period provided in Section 3.1 is the amount payable under the terms of the Letter of Credit and neither Syntroleum nor Syntroleum International Corporation shall have any further or
additional liability to YFP whatsoever. 

  

	4.2	Within ten (10) days of the delivery by Syntroleum to YFP of the Declaration of Commerciality, Syntroleum will pay to YFP the Aje Commercial Bonus. 

  

	4.3	The Parties shall jointly establish an annual plan in accordance with the provisions of the Joint Operating Agreement and Technical Services Agreement for improving the skills of
YFP’s Nigerian personnel. The objective of such annual plan shall be to assist YFP in establishing itself as a fully competent Operator in the Shallow Water Option Area of the 

  

 13 

 OML 113 Lease in the disciplines associated with the exploration, development and production operations,
including the management of such operations, and assisting YFP in complying with the relevant regulations of the Government from time to time as such regulations may apply to the OML 113 Lease. During the period beginning on the Effective Date and
ending on the date of first Commercial Production from the OML 113 Lease the budget for such training program shall be not less than seventy-five thousand dollars (US$75,000) per Calendar Year. For the period beginning from the date of the
commencement of Commercial Production from the OML 113 Lease the budget for such training program shall be not less than one hundred and fifty thousand dollars (US$150,000). The amounts to be paid for training as provided in this Section 4.3 shall
be pro-rated for any period that is less than a full Calendar Year. 
  

	4.4	Prior to commencement of Commercial Production from the OML 113 Lease YFP shall provide free of charge to Syntroleum office space in the offices of YFP located at the Yinka Folawiyo
Plaza, in Lagos Nigeria reasonably sufficient to house the staff of Syntroleum that are required to undertake the operations required to be performed under the terms of this Agreement and the Joint Operating Agreement. Additionally, YFP shall
provide to Syntroleum, such other logistical and office support reasonably necessary to enable the staff of Syntroleum to fully and efficiently perform their activities. During the period beginning on the Effective Date and ending on the Approval
Date Syntroleum shall pay to YFP an amount of *** dollars (US$***) per month to reimburse YFP for its costs incurred in maintaining an office to support its activities undertaken with respect to the OML 113 Lease. During the period beginning after
the day after the Approval Date and ending on the date of commencement of Commercial Production Syntroleum shall pay to YFP an amount of *** dollars (US$***) per month (paid in advance on the first Day of each month) to reimburse YFP such office
costs. After the commencement of Commercial Production Syntroleum shall have no further obligation to make any payment to YFP under this Section 4.4 to reimburse YFP for office costs and on commencement of Commercial Production YFP shall have no
further obligation to provide to Syntroleum office space and logistical support under the provisions of this Section 4.4. This Section 4.4 is personal to Syntroleum and its subcontractors and may not be assigned. 

  

	4.5	In the event Syntroleum receives a Signature Bonus, then to the extent that there is an Excess Signature Bonus Syntroleum shall pay to YFP *** percent (***) of such Excess Signature
Bonus within ten days of the receipt of such amount by Syntroleum. The Parties will make the Prior Cost Adjustment in the event that the aggregate amounts paid to YFP by Syntroleum under this Section 4.5 is less than *** dollars (US$***). The Prior
Cost Adjustment, if any, will be made thirty (30) days after the Approval Date. 

  
 ARTICLE 5 – SALES OF HYDROCARBONS 
  

	5.1	YFP shall have the right to take in kind its Revenue Interest share of Hydrocarbons other than Natural Gas in accordance with the provisions of the Joint Operating Agreement and the
lifting provisions contemplated thereby as may be mutually agreed to by the Parties. 

  

	5.2	All payments to be made to YFP under this Agreement shall be made in United States dollars by wire transfer in immediately available funds to such bank account as is registered in
the name of YFP and is from time to time designated by YFP by Notice to Syntroleum. 

  

 14 

	5.3	The Parties acknowledge and agree that notwithstanding anything to the contrary in this Article or elsewhere in this Agreement or any implied obligations at law or equity, (i)
Syntroleum shall have no obligation to exploit or produce Hydrocarbons from OML 113 which Syntroleum, in its sole discretion, does not consider to have sufficient commercial worth to Syntroleum to warrant exploiting or producing, and (ii) in their
relations with each other under or in connection with this Agreement, the Parties shall not be considered fiduciaries. In the event that Syntroleum elects not to declare an accumulation of Hydrocarbons as a Commercial Discovery, the Joint Operating
Agreement shall provide to YFP the right on a sole risk basis to exploit and produce the Hydrocarbons from such accumulation of Hydrocarbons. 

  
 ARTICLE 6 – TAXES AND WITHHOLDINGS 
  

	6.1	Each Party shall be individually responsible for the payment of any income, value added and other taxes assessed by the taxing authorities of the Federal Republic of Nigeria or any
other country having or claiming tax jurisdiction over such Party on any payments earned or received by such Party under the provisions of this Agreement and the Joint Operating Agreement. Syntroleum shall have the right, upon Notice to YFP, to
withhold from payments due YFP under this Agreement the amount required to be withheld by the country levying or assessing such tax or asserting income tax jurisdiction. In the event that Syntroleum withholds income, value added or other taxes on
YFP’s behalf, Syntroleum will provide YFP with information concerning the taxes withheld and a statement in writing setting forth the amount of tax withheld and paid to the tax authorities. The Parties shall retain recognized tax experts to
assist the Parties in structuring the activities under this Agreement and the Joint Operating Agreement in order to minimize the taxes that may be imposed and paid by the Parties. 

  

	6.2	The benefit of all capital and operating expenditures in respect of Joint Operations on or in respect of any portion of the OML 113 Lease shall be apportioned among the Parties in
accordance with their respective Paying Interests from time to time in the OML 113 Lease for the purpose of calculating taxes which are due and payable by either of the Parties to the taxing authorities of the Federal Republic of Nigeria or any
other country in respect of such operations. If, in any period during the term of this Agreement, a Party’s Participating Interest exceeds its Paying Interest in the OML 113 Lease, such Party shall assign (and shall be deemed to have so
assigned) to the other Party the benefit of all expenditures incurred during such period in respect to the OML 113 Lease, to the extent of the difference between such Party’s Participating Interest share and its Paying Interest share of such
expenditures. Notwithstanding the foregoing Syntroleum shall seek advice on the preparation and payment of taxes under the PPTA so as to minimize the Parties’ taxes under the PPTA. 

  
 ARTICLE 7 – OTHER RIGHTS AND OBLIGATIONS OF THE PARTIES

  

	7.1.	All costs and expenses incurred by Syntroleum resulting from operations conducted in the OML 113 Lease or in relation to the OML 113 Lease shall be charged to the Joint Account, as
defined in the Joint Operating Agreement, and paid by the Parties in accordance with their respective Paying Interests, as determined by reference to Section 2 of this Agreement in respect of such operations in effect at the time such costs and
expenses are incurred. 

  

 15 

	7.2.	The voting interests of the Parties under the Joint Operating Agreement shall be equal to *** to YFP and *** to Syntroleum. 

  

	7.3.	Forthwith following the written request of Syntroleum, YFP shall provide or caused to be provided to Syntroleum (at no additional cost or expense to Syntroleum other than the costs
incurred by Syntroleum in the reproduction and shipping of same to Syntroleum), originals or copies of all material operational, geological, geophysical, technical, engineering and other data, books, records, contracts, maps, drawings and other
information relating to the OML 113 Lease (regardless of form) in the possession or control of YFP. YFP shall have the right to request (at no additional cost or expense to YFP other than the costs incurred by YFP in the reproduction and shipping of
same to YFP) copies of all material operational, geological, geophysical, technical, and engineering information relating to the OML 113 Lease (regardless of form) in the possession or control of Syntroleum. 

  

	7.4.	YFP, Syntroleum and the International Operator, if any, will form an Area of Mutual Interest covering Benin offshore Blocks 1, 2, 3, and 4 and including the Seme Field and offshore
Nigeria Blocks OPL 310, 311, 312, 313 and 314. The parties shall only acquire an interest in any such block by allocating up to *** (***) of such interest to YFP with the remaining balance of such interest allocated to Syntroleum and the
International Operator, if any. 

  
 ARTICLE 8-
REPRESENTATIONS AND WARRANTIES 
  

	8.1.	YFP hereby represents and warrants to Syntroleum that: 

  

	 	8.1.1.	YFP is duly incorporated and validly subsisting in its jurisdiction of incorporation. 

  

	 	8.1.2.	YFP has full corporate capacity, power and authority to enter into this Agreement and to perform its obligations hereunder. 

  

	 	8.1.3.	Neither the execution nor delivery of this Agreement nor the performance by YFP of its obligations hereunder will place YFP in breach of (i) any provision of its charter, by-laws or
other corporate documents, (ii) any court order, judgement or arbitral award to which YFP is subject, or (iii) the OML 113 Lease or any other agreement, instrument, license or permit to which YFP is a party or is bound. 

  

	 	8.1.4.	YFP and its shareholders and its board of directors have taken all necessary corporate action and proceedings to authorize the entering into, execution, delivery and performance of
this Agreement, the Joint Operating Agreement and the Technical Services Agreement. 

  

	 	8.1.5.	The OML 113 Lease (a true and complete copy of which has been provided to Syntroleum) is in full force and effect, in good standing and YFP is the holder of a one hundred percent
(100%) legal and beneficial working interest therein, free and clear of all overriding royalty interests, carried interests, net profit interests, mortgages, charges, pledges, liens, pre-emptive rights and other claims or encumbrances other than
royalties or other entitlements of the Government pursuant to the laws and regulations of the Federal Republic of Nigeria. 

  

 16 

	 	8.1.6.	YFP is and throughout the term of this Agreement shall be (i) a qualified indigenous Nigerian company, (ii) an operator in good standing with the Government, (iii) entitled to
receive from the Government the benefits accorded qualified indigenous Nigerian companies, and (iv) qualified to own and hold its interests in the OML 113 Lease as an indigenous Nigerian company. 

  

	 	8.1.7.	No act or omission of YFP nor, to the best of YFP’s knowledge, information and belief, any act or omission of any other party to the Concession has occurred which would or
might entitle the Government to terminate the Concession and no notice has been given to YFP or, to the best of YFP’s knowledge, information and belief, to any other party to the Concession by the Government of any intention to terminate the
Concession. 

  

	 	8.1.8.	With respect to the OML 113 Lease and YFP’s entitlement to an interest therein there are no unsatisfied judgements or arbitral awards, claims, law suits or proceedings in
existence, contemplated or threatened, and no circumstance exists which YFP reasonably believes may give rise to such a claim, law suit or proceeding. 

  

	 	8.1.9.	YFP is the Operator of the OML 113 Lease and all operations on the OML 113 Lease have been performed in compliance with the terms and conditions of the OML 113 Lease and the laws
and regulations of the Federal Republic of Nigeria. 

  

	 	8.1.10.	All work programs and financial commitments (whether to the Government, service contractors or otherwise) in respect of the OML 113 Lease in effect on the date of this Agreement
have been disclosed in writing to Syntroleum. Other than any work or other obligations which by the terms of such work programs or financial commitments are to be performed or satisfied after the date of this Agreement, there are no outstanding work
or other obligations required to be performed or satisfied in respect of the OML 113 Lease. 

  

	 	8.1.11.	All royalties, bonuses, taxes, license fees and other amounts payable by YFP under the terms and conditions of the OML 113 Lease or the laws and regulations of the Federal Republic
of Nigeria in respect of the OML 113 Lease have been properly paid in a timely manner or will be so paid when due. 

  

	 	8.1.12.	The accounts, books and records kept by YFP in respect of the OML 113 Lease are true, correct and complete in all material respects and have been kept in a manner consistent with
YFP’s past practices and in compliance with the terms and conditions of the OML 113 Lease and the laws and regulations of the Federal Republic of Nigeria. 

  

	 	8.1.13.	No orders, notices or directives have been issued by the Government and no claims have been threatened or made by the Government or any other person or entity in respect of
environmental matters (including, without limitation, allegations of environmental contamination, non-compliance with abandonment and reclamation obligations or non-compliance with any applicable laws or regulations pertaining to health, safety and
the environment) in connection with 

  

 17 

 the OML 113 Lease and there are no circumstances existing as at the date of this Agreement which YFP
reasonably believes may result in any such orders, notices, directives or claims being issued or made. 
  

	 	8.1.14.	Neither YFP nor any of its Affiliates nor any of its or their directors, officers, employees, consultants or agents (individually a “YFP Party”) have made and will not
make at any time during the term of this Agreement with respect to the matters provided for hereunder any payments, loans, gifts or promises of payments, loans or gifts, directly or indirectly, to or for the use or benefit of any official or
employee of the Government or to or for the use of any political party, official or candidate or to any other person if such YFP Party knows or knew or should have known or has or had reason to suspect that any part of such payment, loan or gift or
promise or offer, would violate the laws or regulations of the Federal Republic of Nigeria or other laws and regulations applicable to any of the Parties or their respective Affiliates. Each Party shall respond promptly, and in reasonable detail, to
any notice from any other Party or its auditors pertaining to the above stated representation and warranty and shall furnish documentary support for such response upon request from such other Party. 

  

	8.2.	Syntroleum hereby represents and warrants to YFP that: 

  

	 	8.2.1.	Syntroleum is duly incorporated and validly subsisting in its jurisdiction of incorporation. 

  

	 	8.2.2.	Syntroleum has full corporate capacity, power and authority to enter into this Agreement and to perform its obligations hereunder. 

  

	 	8.2.3.	Syntroleum and its parent companies owns one hundred percent of the Syntroleum GTL Process and the Syntroleum GTL Process will produce GTL diesel and naptha.

  

	 	8.2.4.	Neither the execution nor delivery of this Agreement nor the performance by Syntroleum of its obligations hereunder will place Syntroleum in breach of (i) any provision of its
charter, by-laws or other corporate documents, (ii) any court order, judgement or arbitral award to which Syntroleum is subject, or (iii) any agreement, instrument, license or permit to which Syntroleum is a party or is bound.

  

	 	8.2.5.	Neither Syntroleum nor any of its Affiliates nor any of its or their directors, officers, employees, consultants or agents (individually a “Syntroleum Party”) have made
and will not make at any time during the term of this Agreement with respect to the matters provided for hereunder any payments, loans, gifts or promises of payments, loans or gifts, directly or indirectly, to or for the use or benefit of any
official or employee of the Government or to or for the use of any political party, official or candidate or to any other person if such Syntroleum Party knows or knew or should have known or has or had reason to suspect that any part of such
payment, loan or gift or promise or offer, would violate the laws or regulations of the Federal Republic of Nigeria or other laws and regulations applicable to any of the Parties or their respective Affiliates. Each Party shall respond promptly, and
in reasonable detail, to any notice from any other Party or its auditors pertaining to the above stated representation and warranty and shall furnish documentary support for such response upon request from such other Party. 

 

 18 

 ARTICLE 9 – SYNTROLEUM GUARANTEE 
  

	9.1	Syntroleum International Corporation hereby guarantees to YFP the due performance of Syntroleum’s obligations under Sections 3 and 4 of this Agreement. This guarantee shall be
replaced and superseded by a guarantee from the International Operator upon its selection which shall contain the same obligations as the guarantee from Syntroleum International Corporation. 

  
 ARTICLE 10 - CONDITIONS 
  

	10.1	The obligation of Syntroleum to continue and complete its obligations under this Agreement is subject to satisfaction of the following conditions, which are included for the
exclusive benefit of and may be waived only by Syntroleum: 

  

	 	10.1.1.	Syntroleum and YFP shall have entered into the Joint Operating Agreement and the Technical Services Agreement. 

  

	 	10.1.2.	All approvals as are in Syntroleum’s reasonable opinion necessary or advisable shall have been obtained from the Government and third parties in order to carry out the
transactions contemplated by this Agreement, the Joint Operating Agreement and the Technical Services Agreement in compliance with all applicable laws and regulations and to effectively assign the Assigned Interests in the OML 113 Lease to
Syntroleum together with the benefit of all agreements and rights deemed by Syntroleum to be materially related to such Assigned Interests. 

  

	10.2	If, due to the non-fulfilment of any condition included in this Agreement for its benefit, a Party refuses to continue and complete its obligations under this Agreement, such Party
shall have no liability to the other Party for refusing to do so; provided, however, that the refusing Party shall have complied with any obligation imposed on it by this Agreement to satisfy or endeavour to satisfy such condition.

  

	10.3	Except with the consent of the other Party, a Party may not waive the date by which any condition in Section 10.1 or Section 10.2 must be satisfied without waiving the entire
condition to which such date pertains. 

  
 ARTICLE
11 - TERMINATION 
  

	11.1	This Agreement shall continue until terminated in accordance with any of the provisions of this Article 11 below: 

  

	 	11.1.1.	This Agreement shall terminate upon a unanimous decision of the Parties to terminate this Agreement. 

  

	 	11.1.2.	This Agreement may be terminated by a Party on Notice for non-satisfaction of any condition included in Article 10 of this Agreement for the benefit of such Party.

  

 19 

	 	11.1.3.	If, with respect to any portion of the OML 113 Lease, Syntroleum surrenders its entire interest therein or withdraws therefrom, this Agreement shall terminate insofar as it relates
to such portion of the OML 113 Lease. 

  

	11.2	Upon termination of this Agreement with respect to the OML 113 Lease, neither Party shall have any further obligation to the other Party under this Agreement insofar as it relates
to such portion of the OML 113 Lease; provided that termination of this Agreement shall be without prejudice to any rights or obligations of the Parties which have accrued as of the date of such termination. 

  

	11.3	Notwithstanding termination of this Agreement the Parties shall remain bound by the obligations of Section 5.3 and Articles 12, 14, 15, 16, 18 and 19 of this Agreement.

  
 ARTICLE 12 – INDEMNIFICATION

  

	12.1	YFP shall indemnify and hold harmless Syntroleum from and against any and all expenses, damages, claims, losses and liabilities of whatsoever nature or kind (including expenditures
for legal fees on a solicitor and his own client basis) which are made or brought by any person or entity against Syntroleum or are otherwise suffered or incurred by Syntroleum as a result of, in connection with, or arising directly or indirectly
from any act, omission, matter or thing done or omitted to be done which arose, accrued, occurred or was incurred relating to the OML 113 Lease prior to the Effective Date including any liability arising at any time to any third party arising out of
or in connection with the abandonment of decommissioning of or otherwise in connection with the wells on the OML 113 Lease identified as the Aje #1 Well and the Aje #2 Well, except that this indemnification shall have no effect if the Aje #1 Well
and the Aje #2 Well are used in Joint Operations as such term is defined in the Joint Operating Agreement. 

  

	12.2	YFP shall indemnify and hold harmless Syntroleum from and against any and all expenses, damages, claims, losses and liabilities of whatsoever nature or kind (including expenditures
for legal fees on a solicitor and his own client basis) which are made or brought by any person or entity against Syntroleum or are otherwise suffered or incurred by Syntroleum as a result of, in connection with, or arising directly or indirectly
from any breach by YFP of its representations, warranties or obligations under this Agreement. 

  

	12.3	Syntroleum shall indemnify and hold harmless YFP from and against any and all expenses, damages, claims, losses and liabilities of whatsoever nature or kind (including expenditures
for legal fees on a solicitor and his own client basis) which are made or brought by any person or entity against YFP or are otherwise suffered or incurred by YFP as a result of, in connection with, or arising directly or indirectly from any breach
by Syntroleum of its representations, warranties or obligations under this Agreement. 

  
 ARTICLE 13 – ASSIGNMENT 
  

	13.1	Any assignment or transfer by a Party of any of its rights, obligations or interests in this Agreement shall be made in accordance with the provisions of the Joint Operating
Agreement concerning assignment and transfer. 

  

 20 

 ARTICLE 14 - CONFIDENTIALITY 
  

	14.1	The terms and conditions of this Agreement shall be regarded as confidential information to be governed by the provisions of the Joint Operating Agreement concerning confidentiality
of information. 

  
 ARTICLE 15 - GOVERNING LAW AND
DISPUTE RESOLUTION 
  

	15.1	The substantive law of Nigeria, without regard to any conflicts of laws principles that could require application of any other law, shall govern the interpretation of this Agreement
and any dispute, controversy, or claim (collectively, a “Dispute”) arising out of, relating to, or in any way connected with this Agreement, including, without limitation, the existence, validity, performance, breach, or termination
thereof. 

  

	15.2	Any Dispute arising out of, relating to, or in any way connected with this Agreement, including, without limitation, the existence, validity, performance, breach or termination
thereof, shall be settled in accordance with the provisions of Article 11 of the Heads of Agreement. 

  
 ARTICLE 16 – NOTICES 
  

	16.1	Notices required or permitted to be given under this Agreement shall be addressed or sent in accordance with the provisions of Article 16 of the Heads of Agreement.

  
 ARTICLE 17 - ANNOUNCEMENTS 
  

	17.1	A Party shall not make any press release or other public announcement concerning this Agreement unless the text of such press release or announcement has been approved in writing by
the other Party; provided that such approvals shall not be required if and to the extent such press release or announcement is made in order to comply with any laws, rules or regulations of any government, securities or similar commissions or stock
exchanges to which the Party making the press release or announcement is subject. 

  
 ARTICLE 18 - REMEDIES CUMULATIVE 
  

	18.1	The rights and remedies of the Parties under this Agreement are cumulative and in addition to and not in substitution for any rights or remedies provided by law or equity. Any
exercise by a Party of any right or remedy for breach of any provision of this Agreement shall not waive or prejudice any other right or remedy to which such Party may be lawfully entitled in respect of such breach. 

  
 ARTICLE 19 – CERTAIN DAMAGES EXCLUDED 
  

	19.1	Notwithstanding anything to the contrary in this Agreement, neither Party shall be liable in an action initiated by one against the other for special, indirect or consequential
damages resulting from or arising out of this Agreement, including, without limitation, loss of profit or business interruptions, however same may be caused. 

  

 21 

 ARTICLE 20 - AMENDMENTS 
  

	20.1	This Agreement shall only be amended or modified by an agreement in writing signed by each of the Parties and specifically referring to this Agreement. 

  
 ARTICLE 21 - ENTIRE AGREEMENT 
  

	21.1	This Agreement constitutes the entire agreement between the Parties and supersedes all warranties and representations previously made and, except where expressly referenced herein,
all previous agreements, arrangements or understandings between the Parties relating to the matters contained herein whether oral or in writing made or dated prior to the date hereof. 

  
 ARTICLE 22 - NO WAIVER 
  

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

  
 ARTICLE 23 - ENUREMENT 
  

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

  
 ARTICLE 24 – FURTHER ASSURANCES 
  

	24.1	Each Party shall from time to time hereafter do all such acts and things and execute all such documents and instruments as are reasonably requested by the other Party to more
effectively carry out the terms of this Agreement. 

  
 ARTICLE 25 – FORCE MAJEURE 
  

	25.1	If, as a result of Force Majeure, any Party is rendered unable, wholly or in part, to carry out its obligations under this Agreement, other than any obligation to pay any amount
due, to indemnify or to furnish security, then the obligations of such Party will, so far as and to the extent that the obligations are affected by such Force Majeure, be suspended during the continuance of any inability so caused and for such
reasonable period thereafter as may be necessary for such Party to put itself in the same position that it occupied prior to the Force Majeure, but for no longer period. The Party claiming Force Majeure will notify the other Parties of the Force
Majeure within a reasonable time after the occurrence of the facts relied on and will keep all Parties informed of all significant developments. Such notice will give reasonably full particulars of the Force Majeure, and also estimate the period of
time that the Party reasonably determines it is likely to require to remedy the Force Majeure. The affected Party will use all reasonable diligence to remedy, remove or overcome the Force Majeure situation as quickly as possible in an economic
manner, but will not be obligated to settle any labour dispute except on terms acceptable to it and all such disputes will be handled within the sole discretion of the affected Party. For the purposes of this Agreement, “Force Majeure”
will mean any act, event or circumstance, whether of the kind described herein or otherwise, which is beyond the reasonable control of the Party concerned and will include, but not 

  

 22 

 be limited to, fire, flood, storm, hurricane, tornado, earthquake or other natural disaster, acts of war
(whether declared or undeclared), invasion, sabotage, terrorism or threat of terrorism, riot, civil war, blockade, insurrection, acts of public enemies, non-availability of equipment or personnel, civil disturbances, and strikes, lockouts and other
industrial disturbances even if they were not beyond the reasonable control of the Party. 
  
 ARTICLE 26 – COUNTERPART EXECUTION AND FAX DELIVERY 
  

	26.1	This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed an original agreement for all purposes; provided that no Party shall be bound
by the terms of this Agreement unless and until all Parties have executed a counterpart. Delivery by a Party of an executed counterpart of this Agreement by fax to the other Parties shall constitute sufficient delivery of this Agreement by that
Party. 

  
 IN WITNESS WHEREOF, the Parties have caused their
duly authorized officers to execute and deliver this Agreement as of the day and year first above written. 
  

			
	 YINKA FOLAWIYO PETROLEUM CO. LTD.

		
	 By:
	 	 /s/ T. B. Folawiyo

	 Name:
	 	T. B. Folawiyo
	 Title:
	 	Managing Director
	
	SYNTROLEUM INTERNATIONAL HOLDINGS COMPANY
		
	 By:
	 	 /s/ John B. Holmes, Jr.

	 Name:
	 	John B. Holmes, Jr.
	 Title:
	 	President
	
	 SYNTROLEUM NIGERIA LIMITED

		
	 By:
	 	 /s/ John B. Holmes, Jr.

	 Name:
	 	John B. Holmes, Jr.
	 Title:
	 	President
	
	 For purposes of Section 9 only,

	
	 SYNTROLEUM INTERNATIONAL CORPORATION

		
	 By:
	 	 /s/ John B. Holmes, Jr.

	 Name:
	 	John B. Holmes, Jr.
	 Title:
	 	President

  

 23 

 EXHIBIT ‘A’ 
 MAP OF OML 113 LEASE 
  
 Not Available 
  

 24 

 Exhibit “B” 
  
 to 
 Joint Venture Agreement 
 dated October _, 2004 
  
 THIS DEED OF ASSIGNMENT is made the      day of
            , 200     BETWEEN YINKA FOLAWIYO PETROLEUM COMPANY LIMITED, a company incorporated in Nigeria and having its registered office at Yinka
Folawiyo Plaza, 38 Warehouse Road, Apapa, Lagos (hereinafter called “the Assignor” which expression shall where the context so admits include its successors-in-title and assigns) of the first part and SYNTROLEUM NIGERIA LIMITED, a
company incorporated and existing under the laws of the Federal Republic of Nigeria with its registered address at St. Nicholas House, 9th Floor, Catholic Mission Street, Lagos, Nigeria (“Syntroleum”), and [insert name of International Operator’s Nigerian affiliate] a company incorporated and existing under the laws of the Federal Republic of
Nigeria and having its registered address at
                                        
        Nigeria (Syntroleum and
                                        
are hereinafter collectively called the “Assignees” which expression shall where the context so admits include their respective successors-in-title and assigns) of the other part. 
  

	1.	WHEREAS:- 

  

	1.	By a letter dated the 3rd day of July 1998, the Ministry of Petroleum Resources granted to the Assignor Oil Mining Lease (OML) 113. 

  

	2.	The Assignor has agreed to assign and                      has agreed to
take an undivided                  percent (        %) interest out of the interest of the Assignor in OML 113 and
Syntroleum has agreed to take an undivided              percent (        %) interest out of the interest of the Assignor in OML 113,
each for valuable consideration. 

  

	2.	NOW THIS AGREEMENT WITNESSES AS FOLLOWS:- 

  

	1.	FOR GOOD AND VALUABLE CONSIDERATION the Assignor hereby ASSIGNS to the Assignees that percent interest of its interests, rights, privileges, benefits, duties, burdens, and
obligations in and under OML 113 set opposite their respective names below: 

  
 [Nigerian Affiliate of International Operator]                         % 
 Syntroleum
                                        
                                        
                % 
  

	2.	The Assignees hereby accept the assignments as set out above. 

  

	3.	This Deed of Assignment shall be governed by and construed in accordance with the Laws of the Federal Republic of Nigeria 

  

 25 

	4.	This Agreement shall become effective upon the written consent and approval of the Minister of Petroleum Resources of the Federal Republic of Nigeria, or other duly authorised agent
of the Federal Government of Nigeria. 

  
 IN WITNESS WHEREOF
the parties hereto have caused their Common Seals to be hereto affixed the date and year first above written. 
  

	2.1	THE COMMON SEAL 

  
 of the within-named 
 YINKA FOLAWIYO PETROLEUM COMPANY LIMITED 
 was duly affixed 
 in the presence of:- 
  

					
	
                                 DIRECTOR
	  	
 SECRETARY
	  	 
			
	 THE COMMON SEAL of
	  	 	  	 
	 the within-named
	  	 	  	 
	 2.2    SYNTROLEUM NIGERIA LIMITED
	  	 
			
	 was duly affixed
	  	 	  	 
	 in the presence of:-
	  	 	  	 
			
	
                                 DIRECTOR
	  	
 DIRECTOR
	  	 
			
	 THE COMMON SEAL of
	  	 	  	 
	 the within-named
	  	 	  	 
	 2.3    [AFFILIATE OF INTERNATIONAL OPERATOR]
	  	 
			
	 was duly affixed
	  	 	  	 
	 in the presence of:-
	  	 	  	 
	  

                                 DIRECTOR
	  	
 DIRECTOR
	  	 

  

 26 

 This Deed of Assignment is hereby consented to by the Honourable Minister of Petroleum Resources or other duly authorised
agent of the Federal Government of Nigeria this                      day of
                     2004. 
  
 SIGNATURE: 
  
 NAME: 
  
 POSITION: 
  

 27Agreement with former President and COO dated August 4, 2004

 Exhibit 10.1 
  
 CONFIDENTIAL 
  
 EMPLOYMENT TERMINATION, RELEASE AND CONSULTING AGREEMENT 
  
 This Employment Termination, Release And Consulting Agreement (“Agreement”) is entered into between KANA Software, Inc., their officers,
directors, employees, agents, attorneys, assignees, successors and predecessors (collectively, “KANA”) and Thomas H. Doyle (referred to below as “Employee” or “Consultant”). 
  
 WHEREAS, Employee has been employed by KANA, and both Employee and KANA have
agreed that Employee’s employment shall terminate effective October 1, 2004 (“Termination Date”). KANA and Employee wish to sever their relationship in a way that preserves the good will which exists between them. 
  
 NOW THEREFORE, in consideration of the payment by KANA to Employee of the
sums described in this Agreement, the parties agree as follows: 
  
 A.
TERMINATION OF EMPLOYMENT 
  
 1. Termination Date: Employee hereby
formally submits his resignation and KANA hereby accepts such resignation. The parties agree that Employee’s employment with KANA is terminated effective as of the Termination Date. Up to the Termination Date, Employee shall receive his normal
salary in effect as of the Effective Date of this Agreement as defined in Paragraph D.9 below, less applicable federal and state withholding and Employee agrees to continue to diligently fulfill his regular active duties of employment up to and
including the Termination Date. 
  
 2. Acknowledgment of Payment of Wages.
KANA will Deliver to Employee a final paycheck of all accrued wages, salary, bonuses, reimbursable expenses, and accrued but unused vacation pay (if applicable) due and owing to him from KANA as of the Termination Date. 
  
 3. Vesting of Shares. Employee currently holds those certain option(s) to purchase
shares of KANA common stock, and shares of unvested restricted KANA common stock (or restricted stock convertible into KANA common stock) acquired through the previous exercise of options (all such options and/or restricted shares being “Share
Awards”) attached hereto as Exhibit A. Notwithstanding any provision in any plan, employment agreement, offer letter or other agreement between Employee and KANA (“Prior Agreements”) to the contrary, all of the Employee’s
remaining unvested Share Awards as of October 1, 2004 (“Restricted Shares”) and identified on Exhibit A shall remain initially unvested, but may qualify for vesting pursuant to Section C below. Any Restricted Shares which do not vest
pursuant to Section C below shall terminate. At no time now or in the future, and under no circumstances, shall any such Restricted Shares receive accelerated vesting. Any currently vested options held by Employee shall remain exercisable during the
Period of Consultancy described in Section C below. Employee acknowledges that the provisions of this Agreement may cause any Incentive Stock Options held by Employee to become Non Qualified options. 
  
 4. COBRA Coverage. Employee has the option, at KANA’s expense, to continue health
insurance coverage provided by KANA as of the Employment Termination Date for a certain period of time (generally 18 months) from the Employment Termination Date pursuant to the terms and conditions of COBRA. Information concerning COBRA
continuation coverage will be provided to Employee under separate cover from COLT Express COBRA administrators. Employee has 60 days from the Employment Termination Date to notify COLT in writing of their election to so continue their continuation
coverage. 
  

 1 

 5. Return of KANA Property. Employee hereby represents and warrants to KANA that, except as noted below, he has
returned to KANA and/or will return prior to October 1, 2004, any and all of KANA’s property, including, but not limited to, files, memoranda, computers, records and credit cards, which was in his possession or control. Notwithstanding the
above, Employee may retain possession of the primary personal computer assigned by KANA to Employee, the Blackberry wireless device, and the cellphone (if applicable) assigned by KANA to Employee for use during the Consultancy Period. KANA further
acknowledges that during the Period of Consultancy described below, and pursuant to the consulting terms described below, KANA may authorize Consultant to retain certain files stored on such computer. KANA shall allow Consultant continued access to
voicemail and email for thirty days from the Termination Date. 
  
 6.
Confidential Information. Employee hereby acknowledges that as a result of his employment with KANA, he has had access to and/or has acquired Confidential Information and trade secrets concerning KANA’s operations, its future plans and
its methods of doing business, including by way of example, but by no means limited to, information about KANA’s customers, product development, research, technology, financial, marketing, pricing, cost, compensation and other matters, that he
will hold all such Confidential Information in strictest confidence and that he may not make any use of such Confidential Information on behalf of any third party. Employee further confirms that he has delivered to KANA all documents and data of any
nature containing or pertaining to such Confidential Information and that he has not taken with him any such documents or data of any reproduction thereof, except for any such documents or data that Employee may be specifically authorized to retain
during the Period of Consultancy described below, and pursuant to the consulting terms described below. 
  
 B. RELEASE 
  
 1. Representation
Regarding Existing Claims. Employee hereby warrants that as of the Effective Date (defined below) of this Agreement, he has not filed any legal action in any court naming KANA as a party. 
  
 2. Waiver of Claims. The payments and agreements set forth in the Agreement are in
full satisfaction of any and all accrued salary, vacation pay, bonus pay, profit-sharing, termination benefits or other compensation to which Employee may be entitled by virtue of his employment with KANA or his termination of employment. Employee
hereby releases and waives any and all claims he may have against KANA or any of its officers, directors, employees, managers, shareholders, partners, agents, attorneys, parent corporations, subsidiaries, successors, and assigns, including without
limitation claims for any additional compensation or benefits arising out of the termination of his employment, any claims for any additional stock or stock options and any claims of wrongful termination, breach of contract or discrimination under
state or federal law. 
  
 Employee hereby expressly waives any
benefits of Section 1542 of the Civil Code of the State of California, which provides as follows: 
  
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.” 
  
 Employee understands that various federal, state and local laws prohibit age, sex, race, disability, benefits, pension, health and other forms of discrimination and that these laws can be enforced through the U.S.
Equal Employment Opportunity Commission, California state and local human rights agencies and federal and state courts. Employee understands that if he believes his treatment by KANA was 

  

 2 

 
discriminatory, he has had the right to consult with these agencies and to file a charge with them or file a lawsuit. Employee states and confirms he has
filed no Charges or Claims with any state or federal agency or any other body, institution or tribunal. Employee has decided voluntarily to enter into this Agreement, and waive the right to recover any amounts to which he may have been entitled
under such laws, including, but not limited to: the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. (as amended by the Older Workers’ Benefit Protection Act, 29 U.S.C. § 626(f); the California Fair Employment and Housing
Act, California Government Code § 12900 et seq.; the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq.; Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq.; and 42 U.S.C. § 1981.

  
 C. CONSULTANCY 
  
 1. Consultant Services. KANA and Consultant agree that Consultant shall perform
certain consulting services to KANA during the period beginning on October 1, 2004 and lasting for eighteen (18) months therefrom (“Period of Consultancy”). The general scope of the services shall be to work on strategic projects at the
direction of KANA’s CEO (the “Services”). During the Period of Consultancy, Consultant shall be available to provide the Services for the number and days as requested by KANA’s Chief Executive Officer. For the first six (6)
months, Consultant agrees that he shall make himself available for up to ten (10) hours per week if requested by CEO. Consultant shall be an independent contractor and is not an agent or employee of, and has no authority to bind KANA by contract or
otherwise. Commencing on the Termination Date, Consultant will not be an employee of KANA and therefore shall not be eligible to participate in any employee benefit plans of KANA, including but not limited to health, dental, vision, KANA’s
401(k) plan, and KANA’s Employee Stock Purchase Plan. Consultant will perform the Services under the general direction of KANA, but Consultant will determine, in Consultant’s sole discretion, the manner and means by which the Services are
accomplished, subject to the requirement that Consultant shall at all times comply with applicable law. KANA has no right or authority to control the manner or means by which the Services are accomplished. 
  
 2. Compensation. As sole compensation for the performance of the Services, KANA will
pay Consultant the fees and option/stock vesting set forth in this Section. Any expenses incurred by Consultant in performing the Services will be the sole responsibility of Consultant except as may otherwise be agreed in writing in advance. KANA
will pay Consultant at a monthly rate equal to Consultant’s salary with KANA in effect as of October 1, 2004, less applicable withholding taxes and to be paid according to KANA’s normal payroll practices but Consultant will not be eligible
to receive any bonuses. Additionally, at the end of the Period of Consultancy, the Restricted Shares shall become vested with respect to the number of shares that would have vested during Period of Consultancy pursuant to the vesting schedule in
effect as of October 1, 2004 so long as Consultant continuously provides the Services to the KANA as set forth above in Paragraph C(1) above until the end of the full term of the Period of Consultancy. Consultant will receive no royalty or other
remuneration on the sale, marketing, production, and/or distribution of any products sold, developed or otherwise distributed by KANA or by Consultant in connection with or based upon the Services (“Products”). 
  
 3. Property of KANA. 
  
 (a) Definition. For the purposes of this Agreement, “Designs and Materials” shall mean all designs,
discoveries, inventions, products, computer programs, procedures, improvements, developments, drawings, notes, documents, information and materials made, conceived or developed by Consultant alone or with others pursuant to the Services or otherwise
resulting from the Services. 
  
 (b) Assignment of
Ownership. Consultant hereby irrevocably transfers and assigns any and all of its right, title, and interest in and to Designs and Materials, including but not limited to all 

  

 3 

 
copyrights, patent rights, trade secrets and trademarks, to KANA. Designs and Materials will be the sole property of KANA and KANA will have the sole right
to determine the treatment of any Designs and Materials, including the right to keep them as trade secrets, to file and execute patent applications on them, to use and disclose them without prior patent application, to file registrations for
copyright or trademark on them in its own name, or to follow any other procedure that KANA deems appropriate. In addition, any and all rights, title, and interest which Consultant may have in the Services, Designs and Materials and/or Products,
including any copyright, trademark, trade secret, or other proprietary rights, under the laws of the United States or of any other jurisdiction, are hereby irrevocably assigned by Consultant to KANA, in perpetuity. Consultant agrees: (a) to disclose
promptly in writing to KANA all Designs and Materials; (b) to cooperate with and assist KANA to apply for, and to execute any applications and/or assignments reasonably necessary to obtain, any patent, copyright, trademark or other statutory
protection for Designs and Materials in KANA’s name as KANA deems appropriate; and (c) to otherwise treat all Designs and Materials as “Confidential Information,” as defined herein. These obligations to disclose, assist, execute and
keep confidential will survive any expiration or termination of this Agreement. 
  
 (c) Moral Rights Waiver. “Moral Rights” means any right to claim authorship of a work, any right to object to any distortion or other modification of a work, and any similar right, existing
under the law of any country in the world, or under any treaty. Consultant hereby irrevocably transfers and assigns to KANA any and all Moral Rights that Consultant may have in any Services, Designs and Materials or Products. Consultant also hereby
forever waives and agrees never to assert against KANA, its successors or licensees any and all Moral Rights Consultant may have in any Services, Designs and Materials or Products, even after expiration or termination of the Period of Consultancy.

  
 4. Confidential Information. Consultant acknowledges that Consultant
will acquire information and materials from KANA and knowledge about the business, products, programming techniques, experimental work, customers, clients and suppliers of KANA and that all such knowledge, information and materials acquired, the
existence, terms and conditions of this Agreement, and the Designs and Materials, are and will be the trade secrets and confidential and proprietary information of KANA (collectively “Confidential Information”). Confidential
Information will not include, however, any information which is or becomes part of the public domain through no fault of Consultant or that KANA regularly gives to third parties without restriction on use or disclosure. Consultant agrees to hold all
such Confidential Information in strict confidence, not to disclose it to others or use it in any way, commercially or otherwise, except in performing the Services, and not to allow any unauthorized person access to it, either before or after
expiration or termination of this Agreement. Consultant further agrees to take all action reasonably necessary and satisfactory to protect the confidentiality of the Confidential Information including, without limitation, implementing and enforcing
operating procedures to minimize the possibility of unauthorized use or copying of the Confidential Information. 
  
 5. Non-Competition, Non-Solicitation and Savings Clause. 
  
 (a) Noncompetition Term. During the Period of Consultancy (the “Noncompetition Term”), Employee hereby agrees that, except with the written consent of KANA,
directly or indirectly, individually or as an employee, partner, officer, director or shareholder or in any other capacity whatsoever of or for any person, firm, partnership, company or corporation other than KANA or its subsidiaries (other than as
a holder of less than 1% of the outstanding capital stock of a publicly-traded company), he shall not: 
  
 (i) Own, manage, operate, sell, control or participate in the ownership, management, operation, sales or control of or be connected in any manner with any
business engaged in: (A) developing and marketing software in the fields of CRM, Service Resolution Management; or (B) developing any product or providing any service that is substantially the same as, is based upon or competes in any material
respect with any business described in clause (A) of this paragraph; 
  

 4 

 (ii) Recruit, attempt to hire, solicit, assist others in recruiting or hiring, or refer to others
concerning employment, any person who is or was an employee of KANA, any of KANA’s subsidiaries, or any of KANA’s customers or partners, or induce or attempt to induce any such employee to terminate his employment with KANA, or any of
KANA’s subsidiaries, or any of KANA’s customers or partners (as the case may be); 
  
 (iii) Induce or attempt to induce any person or entity to curtail or cancel any business or contracts that such person or entity had with KANA, or any of KANA’s subsidiaries; or 
  
 (iv) Contact, solicit or call upon any customer or supplier of KANA, or any
of KANA’s other subsidiaries, on behalf of any other person or entity for the purpose of selling or providing any services or products of the type normally sold or provided by KANA, or any of KANA’s subsidiaries. 
  
 (b) The agreements set forth in this Section 5 include within their scope all cities,
counties, provinces and states of all countries in which KANA or any of its subsidiaries has engaged in development or sales of products or otherwise conducted business or selling or licensing efforts at any time before and during the Noncompetition
Term. The Employee acknowledges that the scope and period of restrictions and the geographical area to which the restriction imposed in this Section 5 shall apply are fair and reasonable and are reasonably required for the protection of KANA and
that Section 5(a) accurately describes the business to which the restrictions are intended to apply. 
  
 (c) It is the desire and intent of the parties that the provisions of this Section 5 shall be enforced to the fullest extent permissible under applicable law. If any provision of this Agreement or any part of any such
provision is held under any circumstances to be invalid or unenforceable by any arbitrator or court of competent jurisdiction, then: (i) such provision or part thereof shall, with respect to such circumstances and in such jurisdiction, be modified
by such arbitrator or court to conform to applicable laws so as to be valid and enforceable to the fullest possible extent; (ii) the invalidity or unenforceability of such provision or part thereof under such circumstances and in such jurisdiction
shall not affect the validity or enforceability of such provision or part thereof under any other circumstances or in any other jurisdiction; (iii) the invalidity or unenforceability of such provision or part thereof shall not affect the validity or
enforceability of the remainder of such provision or the validity or enforceability of any other provision of this Section 5. Each provision of this Section 5 is separable from every other provision of this Section 5, and each part of each provision
of this Section 5 is separable from every other part of such provision. 
  
 (d)
The Employee acknowledges that any breach of the covenants of Section 5 will result in immediate and irreparable injury to KANA and, accordingly, consents to the application of injunctive relief and such other equitable remedies for the benefit of
KANA as may be appropriate in the event such a breach occurs or is threatened. The foregoing remedies shall be in addition to all other legal remedies to which KANA may be entitled hereunder, including, without limitation, monetary damages.

  
 6. Nondisparagement. Employee agrees that he will not disparage KANA or
its products, services, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them, with any written or oral
statement. Notwithstanding the foregoing, KANA acknowledges and agrees that employee may seek employment in his field of expertise and in the course of performing his duties, Employee shall be entitled to partake of ordinary competitive practices
including, without limitation, differentiating his new employer’s products, services and market opportunities from those of KANA, based solely on publicly available information. 
  

 5 

 7. Termination and Expiration. 
  
 (a) Breach. Either party may terminate Consultant’s provision of services hereunder in the event of a breach by
the other party of this Agreement if such breach continues uncured for a period of ten (10) days after written notice. 
  
 (b) Expiration. Unless terminated earlier, this Agreement will expire at the end of the Period of Consultancy. 
  
 (c) Effect of Termination. Upon termination or expiration of this
Agreement, Employee shall immediately return to KANA all equipment and files received before or during the Period of Consultancy, including without limitation the equipment and other materials referenced in Paragraph A.5 and C.4 above, and will
immediately return to KANA any and all Confidential Information received by Employee, or authored, created, derived or otherwise developed by Employee, before and during the Period of Consultancy. 
  
 (d) No Election of Remedies. The election by KANA to terminate this
Agreement in accordance with its terms shall not be deemed an election of remedies, and all other remedies provided by this Agreement or available at law or in equity shall survive any termination. 
  
 D. GENERAL 
  
 1. Legal and Equitable Remedies. Employee agrees that KANA shall have the right to enforce this Agreement and any of its provisions
by injunction, specific performance or other equitable relief without prejudice to any other rights or remedies KANA may have at law or in equity for breach of this Agreement. 
  
 2. Arbitration. Any controversy or claim arising out of or relating to this Agreement or the breach thereof, or the Employee’s
Employment or the termination thereof, with the exception of any controversy or claim arising out of or relating to Paragraph C(5), shall be settled by arbitration in San Mateo County, California in accordance with the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association. The decision of the arbitrator shall be final and binding on the parties, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction
thereof. The parties hereby agree that the arbitrator shall be empowered to enter an equitable decree mandating specific enforcement of the terms of this Agreement. The KANA and the Employee shall share equally all fees and expenses of the
arbitrator. Any controversy or claim arising out of or relating to Paragraph C(5) shall be settled in the appropriate federal or state court in the State of California. The KANA and the Employee hereby consent to personal jurisdiction of the state
and federal courts located in the State of California for any action or proceeding arising from or relating to this Agreement or relating to any arbitration in which the parties are participants. 
  
 3. Confidentiality. The contents, terms and conditions of this Agreement shall be kept
confidential by Employee and shall not be disclosed except to his attorney or as otherwise required by law. Any breach of this confidentiality provision shall be deemed a material breach of this Agreement. 
  
 4. No Admission of Liability. This Agreement is not and shall not be construed or
contended by Employee to be an admission or evidence of any wrongdoing or liability on the part of KANA, its representatives, heirs, executors, attorneys, agents, partners, officers, shareholders, directors, employees, subsidiaries, affiliates,
divisions, successors or assigns. This Agreement shall be afforded the maximum protection allowable under California Evidence Code Section 1152 and/or any other state or Federal provisions of similar effect. 
  

 6 

 5. Assignment; Successors. This Agreement and all rights and obligations of the Employee hereunder are personal to
the Employee and may not be transferred or assigned by the Employee at any time. This Agreement shall be binding upon, and KANA may assign its rights to, any successor (whether direct or indirect and whether by purchase, lease, merger,
consolidation, liquidation or otherwise) to all or substantially all of the KANA’s business and/or assets. This Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
  
 6. Modification. It is expressly agreed that this Agreement may not be altered, amended, modified, or otherwise changed in any respect except by another written
agreement which specifically refers to this Agreement, and which is duly executed by authorized representative of each of the Parties hereto. 
  
 7. Headings. The headings of the paragraphs of this Agreement are for convenience only and are not binding upon any interpretation of this Agreement. 

 
 8. Preparation of Agreement. This Agreement will not be construed against any one
party, regardless of which party initially drafted it. The parties expressly agree that this Agreement will be construed and enforced as a mutually prepared Agreement. 
  
 9. Reconsideration; Right to Revoke. Employee is advised to consult with an attorney prior to executing this Agreement. Employee
represents and agrees that Employee fully understands Employee’s right to discuss all aspects of this Agreement with Employee’s private attorney, that to the extent, if any, Employee desires, Employee has availed him/herself of this right,
that Employee has carefully read and fully understands all of the provisions of this Agreement, and that Employee is voluntarily entering into this Agreement. Employee understands and agrees that the General Release and Waiver of Claims contained in
this Agreement is in exchange for the consideration specified herein, including without limitation the Consultancy Period, continued vesting, and opportunity for continuing health benefits, and that Employee would not otherwise be entitled to such
consideration. Employee represents that Employee is at least forty (40) years of age. Employee acknowledges that they were offered a period of at least twenty-one (21) calendar days to consider the terms of this Agreement (“Reconsideration
Period”). Employee may execute the Agreement at any time during the Reconsideration Period which shall mean that the Reconsideration Period has ended. For a period of seven (7) days following execution of this Agreement (“Cooling Off
Period”), Employee may revoke this Agreement. The date immediately following the Cooling Off Period shall be the Effective Date of this Agreement. 
  
 10. Entire Agreement. This Agreement, together with any applicable Option Agreements and equity incentive plans, constitute the entire agreement between Employee
and KANA with respect to the subject matter hereof and supersedes all prior negotiations and agreements, whether written or oral, relating to such subject matter. Employee acknowledges that neither KANA nor its agents or attorneys, have made any
promise, representation or warranty whatsoever, either expressed or implied, written or oral, which is not contained in this Agreement for the purpose of inducing Employee to execute the Agreement, and Employee acknowledges that he has executed this
Agreement in reliance only upon such promises, representations and warranties as are contained herein. 
  

 7 

									
	 EMPLOYEE
	 	 	 	 KANA SOFTWARE, INC.

					
	 By:
	 	 /s/    TOM DOYLE

	 	 	 	 By:
	 	 /s/    CHUCK BAY

	 	 	 Thomas H. Doyle
	 	 	 	 	 	 
					
	 Date:
	 	 August 4, 2004
	 	 	 	 Date:
	 	 August 4, 2004

  

 8 

 EXHIBIT A 
  

Doyle Shares as of 10/1/2004 
  

			
	 	 	Kana Software, Inc.
	Closing Statement	 	ID: 77-0435679
	 	 	181 Constitution Drive
	 	 	Menlo Park, CA 94025

  
 Termination Date: 10/1/2004

  

			
	Tom Doyle	 	ID: ###-##-####

  
 Exercisable Options 

 

																					
	 Number

	  	 Grant
 Date

	  	 Plan/
 Type

	 	Price

	  	Shares
Granted

	  	Shares
Exercised

	  	Shares
Shares
Exercisable

	  	Vesting
Stop Date

	  	Total Price

	  	 Last Date
 To Exercise

	 KP000069
	  	10/12/2001	  	BB00/NQ	 	$	0.1000	  	3,750	  	0	  	3,750	  	4/1/2006	  	$	375.00	  	7/1/2006
	 KA001118
	  	12/13/2001	  	BB99/NQ	 	$	14.4100	  	244,798	  	0	  	244,798	  	4/1/2006	  	$	3,527,539.1	  	7/1/2006
	 KA001117
	  	12/13/2001	  	BB99/NQ	 	$	14.4100	  	5,202	  	0	  	5,202	  	4/1/2006	  	$	74,960.82	  	7/1/2006
	 KP000584
	  	5/1/2002	  	K99/NQ	 	$	9.4800	  	5,000	  	0	  	5,000	  	4/1/2006	  	$	47,400.00	  	7/1/2006
	 KA001270
	  	8/1/2002	  	BB99/NQ	 	$	1.6300	  	130,000	  	0	  	119,167	  	4/1/2006	  	$	194,242.21	  	7/1/2006
	 KA001265
	  	8/1/2002	  	K99/NQ	 	$	1.6300	  	90,000	  	0	  	82,500	  	4/1/2006	  	$	134,475.00	  	7/1/2006
	 KA001589
	  	2/13/2003	  	K99/NQ	 	$	3.1000	  	75,000	  	0	  	57,813	  	4/1/2006	  	$	179,220.30	  	7/1/2006
	 KA001590
	  	2/13/2003	  	BB99/NQ	 	$	3.1000	  	200,000	  	0	  	154,167	  	4/1/2006	  	$	477,917.70	  	7/1/2006
	 RR001305
	  	4/11/2001	  	BB00/NQ	 	$	8.7600	  	10,500	  	0	  	10,500	  	4/1/2006	  	$	91,980.00	  	7/1/2006
	 RR000522
	  	4/11/2001	  	BB00/NQ	 	$	8.7600	  	30,450	  	0	  	30,450	  	4/1/2006	  	$	266,742.00	  	7/1/2006
	 RR000521
	  	4/11/2001	  	BB00/NQ	 	$	8.7600	  	1,050	  	0	  	1,050	  	4/1/2006	  	$	9,198.00	  	7/1/2006
	 000953
	  	7/7/2000	  	BB00/NQ	 	$	9.5200	  	53	  	0	  	53	  	4/1/2006	  	$	504.56	  	7/1/2006
	 000305*
	  	4/30/1999	  	B96E/ISO*	 	$	3.4800	  	28,767	  	19,778	  	8,989	  	4/1/2006	  	$	31,281.72	  	7/1/2006
	 KA001886
	  	5/4/2004	  	K99/NQ	 	$	3.1100	  	100,000	  	0	  	0	  	4/1/2006	  	$	0.00	  	 
	 000363
	  	4/30/1999	  	B96E/NQ	 	$	3.4800	  	21,633	  	13,102	  	8,531	  	4/1/2006	  	$	29,687.88	  	7/1/2006
	 	  	 	  	 	 	 	 	  	
	  	
	  	
	  	 	  	 	 	  	 
	 	  	 	  	TOTALS	 	 	 	  	946,203	  	32,880	  	731,970	  	 	  	$	5,065,524.3	  	 

	*	Any unexercised shares change from ISO to NQ as of 01/01/2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]