Document:

Manas Petroleum Corporation - Exhibit 10.1 - Filed by newsfilecorp.com

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND
REPLACED WITH “***”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934. 

 

DATED 31 December, 2012 

 

 

*** 

 

 

and 

DWM PETROLEUM AG

 

 

 

 

Relating to the sale and purchase of
80% of the
issued share capital
of *** 

TABLE OF CONTENTS 

	ARTICLE
      1 	INTERPRETATION
      	2
      
	 	 	 
	ARTICLE
      2 	SALE
      AND PURCHASE OF THE SHARES 	2
      
	 	 	 
	ARTICLE
      3 	CONDITIONS
      FOR COMPLETION AND EARLIER STEPS 	2
      
	 	 	 
	ARTICLE
      4 	INTERIM
      PERIOD 	4
      
	 	 	 
	ARTICLE
      5 	COMPLETION
      	6
      
	 	 	 
	ARTICLE
      6 	INDEPENDENT
      ACCOUNTANTS 	7
      
	 	 	 
	ARTICLE
      7 	LOANS
      AND GUARANTEES 	7
      
	 	 	 
	ARTICLE
      8 	THE
      SELLER'S WARRANTIES 	8
      
	 	 	 
	ARTICLE
      9 	PURCHASER'S
      WARRANTIES 	8
      
	 	 	 
	ARTICLE
      10 	PROTECTIVE
      COVENANTS 	8
      
	 	 	 
	ARTICLE
      11 	TAX
      	9
      
	 	 	 
	ARTICLE
      12 	CONFIDENTIALITY
      	9
      
	 	 	 
	ARTICLE
      13 	NOTICES
      	10
      
	 	 	 
	ARTICLE
      14 	FURTHER
      ASSURANCES 	11
      
	 	 	 
	ARTICLE
      15 	ASSIGNMENTS
      	11
      
	 	 	 
	ARTICLE
      16 	GENERAL
      	12
      
	 	 	 
	ARTICLE
      17 	WHOLE
      AGREEMENT 	13
      
	 	 	 
	ARTICLE
      18 	GOVERNING
      LAW 	13
      
	 	 	 
	ARTICLE
      19 	ARBITRATION
      	13
      
	 	 	 
	SIGNATORIES
      	  	14
      

	SCHEDULE 1 CORPORATE DETAILS AND INTERESTS
    
	SCHEDULE 2 MAP OF AREAS FOR WHICH SELLER WILL OBTAIN NEW
      PETROLEUM EXPLORATION RIGHT 
	SCHEDULE 3 SELLER'S WARRANTIES 
	SCHEDULE 4 LIMITS ON WARRANTY CLAIMS 
	SCHEDULE 5 SELLER’S OBLIGATIONS AND
      PURCHASER’S OBLIGATIONS AT COMPLETION 
	SCHEDULE 6 INSURANCE POLICIES 
	SCHEDULE 7 DEAL STRUCTURE 
	SCHEDULE 8 INTERPRETATION 
	 
	ANNEXURE
      1 OPTION AGREEMENT 
	ANNEXURE 2 AUDIT REPORT 
	ANNEXURE
      3 PURCHASER’S NOTICE FOR EXERCISE OF OPTION 

THIS AGREEMENT is made on 31 December, 2012 

BY AND BETWEEN: 

***a company organised under the
laws of *** whose registered office is at *** (hereinafter “Seller”); and

DWM PETROLEUM AG, a company
registered in Switzerland, having its registered office at Bahnhofstrasse 9,
Baar, Switzerland (hereinafter “Purchaser”). 

RECITALS: 

	A. 	
      That ***, a company registered in ***, which is wholly
      owned subsidiary of the Seller (hereinafter “***”) is the legal and
      beneficial owner of ***% shares in ***, a joint venture with limited
      liability incorporated under the laws of Tajikistan (hereinafter “***”),
      and the remaining ***% shares in *** are held by *** (hereinafter
      “***”).

	 	 
	B. 	
      That *** is the 100% owner of rights in petroleum
      licences for the fields in Tajikistan identified in the Schedule 1
      (hereinafter “LICENSING AGREEMENTS”). LICENSING AGREEMENTS are ***
      licences covering areas of *** pursuant to which *** has had been
      operating since ***, as successor in interest of another Tajik joint
      venture with limited liability *** known as *** (hereinafter “***”), and
      which was also partly owned by *** (hereinafter “***”) in addition to ***
      and ***.

	 	 
	C. 	
      That the Seller and the Purchaser are party to an Option
      Agreement effective 5 May 2012 (hereinafter “Option Agreement”), which is
      attached hereto as Annexure 1 of this Agreement. Under the Article 1 b of
      the Option Agreement, Seller gave an option (hereinafter “Option”) to the
      Purchaser to purchase 80% shares in a new company incorporated *** which
      would own 100% shares of *** (hereinafter “Shares”) upon payment of a
      security deposit of USD 10 million (“Security Deposit”).

	 	 
	D. 	
      That pursuant to the Option Agreement, Seller has already
      incorporated *** (hereinafter “***”) in *** as per details in Schedule 1
      hereof. On request of Purchaser, Seller has appointed a nominee of
      Purchaser, as a director of *** at the time of incorporation. Further,
      Purchaser has spent approx. USD 100,000 to assist Seller in incorporation
      of *** by paying *** share capital on behalf of Seller. Such costs shall
      hereinafter be referred to as “Purchaser’s Advance in respect of
    **”.

	 	 
	E. 	
      That pursuant to Article 1 (d) of the Option Agreement,
      Purchaser has conducted legal due diligence (hereinafter “Due Diligence”)
      regarding ***, *** and ***, and thereafter also completed an independent
      audit (hereinafter “Audit”) of all books and accounts of ***, *** and ***
      to follow-up on the concerns raised in the Due Diligence. Audit report is
      attached hereto as Annexure 2 of this Agreement.

	 	 
	F. 	
      That On October 23, 2012, pursuant to Article 1 e of the
      Option Agreement, Purchaser has exercised the Option, subject to Seller
      taking certain actions (hereinafter “Actions”) as described in Schedule A
      of its notice to exercise Option, attached hereto as Annexure 3 of this
      Agreement, to bring LICENSING AGREEMENTS and related agreements in
      order.

	 	 
	G. 	
      That pursuant to Article 1 (f) of the Option Agreement,
      Seller and Purchaser have agreed on a purchase price based on the findings
      of the Audit (hereinafter “Consideration”), and pursuant to the Option
      Agreement, the Security Deposit shall be construed as part payment towards
the Consideration. Further, Purchaser's Advance in respect of *** shall also be construed as part payment towards the Consideration. 

NOW THEREFORE, IT IS AGREED as
follows: 

ARTICLE 1 Interpretation 

	1.1 	
      In addition to terms defined elsewhere in this Agreement,
      the definitions and other provisions in the Schedule 8 apply throughout
      this Agreement, unless the contrary intention appears.

	 	 
	1.2 	
      In this Agreement, unless the contrary intention appears,
      a reference to a clause, Article or Schedule is a reference to a clause,
      Article or Schedule to this Agreement. The Schedules, Annexures and the
      Disclosure Letter accompanying this Agreement shall form integral part of
      this Agreement.

	 	 
	1.3 	
      The headings in this Agreement do not affect its
      interpretation.

ARTICLE 2 Sale and Purchase of the Shares 

	2.1 	
      Subject to the terms and conditions of this Agreement,
      Seller shall sell and procure the sale of and the Purchaser shall purchase
      and procure the purchase of the Shares at the Completion Date, but with
      effect from the Economic Date.

	 	 
	2.2 	
      The consideration for the sale of the Shares shall be USD
      21 million (the “Consideration”).

	 	 
	2.3 	
      As recited in Recital G above, it is acknowledged that
      USD 10,100,000 of the Consideration is already paid.

	 	 
	2.4 	
      Purchaser shall advance to Seller, USD 7 million
      (hereinafter “Next Advance”) within thirty (30) days of the date
      conditions mentioned in Article 3.1 below are satisfied.

	 	 
	2.5 	
      Purchaser shall make remaining payment of USD 3,900,000
      subject to any necessary downward adjustment in accordance with this
      Agreement, to Seller on the Completion Date once conditions mentioned in
      Article 3.2 are satisfied.

	 	 
	2.6 	
      All payments hereunder shall be paid by the Purchaser via
      wire transfer to the Seller’s bank account with following details under
      the name of ***:

*** 

*** 

*** 

ARTICLE 3 Conditions for Completion and Earlier Steps

	3.1 	
      Conditions for the Next Advance

	 	 
	3.1.1 	
      Purchaser has obtained the requisite approval of TSX-V
      (TSX Venture Exchange) for the transaction envisaged by this
    Agreement.

	 	 
	3.1.2 	
      *** has completed Actions other than Actions related to
      ***

*** 

2 

		*** 
	 	 
		*** 
	 	 
	3.1.3 	
      Seller has provided to Purchaser, a list of all lands
      owned or leased by *** (hereinafter “Real Estate Properties”).

	 	 
	3.1.4 	
      Seller has provided to Purchaser, Accounts as of the
      Accounts Date.

	 	 
	3.1.5 	
      Seller has provided to Purchaser, tax book value of
      assets and liabilities of *** as of the Economic Date.

	 	 
	3.1.6 	
      Seller shall place its ***%shares of *** in an escrow
      acceptable to Purchaser (hereinafter “Escrow”), for the benefit of the
      Purchaser.

	 	 
	
      3.1.7 
	
      Seller has entered into a share purchase arrangement with
      *** to purchase remaining shares *** from ***. In this regard, Seller
      shall provide to the Purchaser *** letter issued by *** confirming that
      remaining shares in *** are subject to sale.

	 	 
	3.2 	
      Conditions Precedent for Completion - Completion
      is conditional upon, and subject to, the fulfilment or waiver (pursuant to
      Clause 3.3) of the following conditions (hereinafter “Conditions
      Precedent”).

	 	 
	3.2.1 	
      Seller has purchased remaining shares in *** from ***,
      and subsequently transferred 100% interests in *** to ***, in the manner
      described as Step 2 and 3 in the contemplated deal structure described in
      Schedule 7 of this Agreement.

	 	 
	3.2.2 	
      Transfer of 100% shares in *** to *** has been registered
      in all official registers in Tajikistan.

	 	 
	3.2.3 	
      Seller has provided an affidavit certifying that *** has
      no claim against Seller, in respect of section 4.1.2 of the Audit Report,
      and if in future a claim arises from *** in respect of ***, Seller shall
      settle it at its own cost and expense.

	 	 
	3.2.4 	
      Purchaser’s accountants (BDO Tajikistan), at ***’s
      expense, have audited all books and accounts of *** in line with
      international standards and issued an unqualified opinion.

	 	 
	3.2.5 	
      *** Seller has provided to Purchaser, a list of employees
      of *** that it expects as of Completion Date.

	 	 
	3.2.6 	
      the receipt of the requisite Government Approval to the
      sale and purchase of the Shares in so far as required; and

	 	 
	3.2.7 	
      the receipt of the Economic Date Accounts by the
      Purchaser.

	 	 
	3.2.8 	
      Seller has obtained a letter from *** which states that
      *** - to allow *** to obtain financing from international sources. (In
      this regard, Purchaser shall provide to ***, a draft letter addressed to
      ***, which it will prepare in consultation with ***, its local counsel in
      Republic of Tajikistan).

	 	 
	3.2.9 	
      Scope of the LICENSING AGREEMENTS ***, which is more
      fully described in the map attached hereto as Schedule 2 of this
      Agreement.

	 	 
	3.2.10 	
      *** has completed Actions related to
  ***.

3 

	3.2.11 	
      Seller and Purchaser have agreed on the Environmental
      Baseline pursuant to Schedule 3, clause 1.12 (b).

	 	 
	3.3 	
      The Seller and the Purchaser shall use all reasonable
      endeavours to procure or seek waiver regarding the fulfilment of the
      Conditions for the Next Advance and the Conditions Precedent as soon as
      reasonably practicable after the signing of this Agreement. Purchaser
      shall also notify Seller regarding the process and current status of
      obtaining the requisite approval of TSX-V (TSX Venture
Exchange).

	 	 
	3.4 	
      Refund

	 	 
	3.4.1 	
      If the Conditions Precedent are not fulfilled or, to the
      extent applicable, waived on or before the date falling 120 days after the
      date of this Agreement, this Agreement shall cease to have effect, (except
      for the obligations in Articles 12, 18 and 19 and neither of the Parties
      (provided it shall have used reasonable endeavours as aforesaid) will,
      save in relation to any accrued rights or obligations as at such date,
      have any rights or liabilities under this Agreement. In such case, Seller
      shall refund to Purchaser, USD 17,100,000 (being Security Deposit,
      Purchaser’s Advance in respect of *** and Next Advance, all of which is
      already paid by such time) less a penalty of USD2 million as a
      compensation of the Seller’s expenses within 365 days of the date of
      signing of this Agreement.

	 	 
	3.4.2 	
      If Purchaser fails to advance Next Advance to Seller,
      within the time period stipulated in Article2.4 above, where Seller duly
      performed all actions stipulated in the Articles 3.1.2-3.1.7 of this
      Agreement, the Seller must refund to Purchaser, USD10,100,000 (being
      Security Deposit and Purchaser’s Advance in respect of *** all of which is
      already paid by such time) by delivering within reasonable period to
      Purchaser, 65% shares of *** (which is owner of ***% shares of ***), which
      are placed in Escrow for the benefit of Purchaser, as specified in clause
      3.1.6 of this Agreement. In the above case, on account of transfer of 65%
      shares of *** (which is owner of ***% shares of *** at that time)
      Purchaser shall also pay to Seller, additional amount of USD 2 million (as
      a compensation of the Seller’s expenses) within 365 days from the date of
      signing of this Agreement. If at the time of the aforementioned delivery
      of 65% shares of *** to Purchaser, *** owns more than ***% shares of ***,
      then Purchaser shall pay to Seller, additional amount corresponding to
      shares more than ***% shares of *** (calculated on the assumption that 80%
      shares of ***, if *** owns100% shares of ***, are worth USD***), within
      365 days from the date of signing of this Agreement or accept pro-rata
      reduction in the number of deliverable shares of *** in order to
      re-establish status quo.

	 	 
	3.4.3 	
      If Conditions for Next Advance are not satisfied to the
      satisfaction of Purchaser, within 90 days of the signing of this
      Agreement, and consequently transaction envisaged by this Agreement is not
      Completed, then Seller shall refund to Purchaser, USD10,100,000 (being
      Security Deposit and Purchaser’s Advance in respect of ***, all of which
      is already paid by such time) less a penalty of USD2 million as a
      compensation of Seller’s expenses, within 365 days of the date of signing
      of this Agreement.

	 	 
	3.5 	
      Seller shall send a copy of the Government Approvals to
      the Purchaser promptly following receipt thereof and notify the Purchaser
      of the Completion Date once the Conditions Precedent have been fulfilled
      or waived.

ARTICLE 4 Interim Period 

	4.1 	
      The Seller shall procure that, between the date of this
      Agreement and Completion, the Companies shall:

4 

	4.1.1 	
      carry on business in the ordinary course and meet their
      obligations under the LICENSING AGREEMENTs;

	 	 
	4.1.2 	
      conduct their affairs in relation to the Interest in
      accordance with applicable laws, the LICENSING AGREEMENTs and good
      industry practice;

	 	 
	4.1.3 	
      continue to meet all expenditures and receive all income
      relating to the Interest;

	 	 
	4.1.4 	
      maintain or cause to be maintained in force any insurance
      which the Companies hold or which is held on their behalf as at the date
      of this Agreement as described in Schedule 6 of this Agreement and make
      and diligently pursue claims which can be made under such
  policies;

	 	 
	4.1.5 	
      keep proper accounting records and in them make true and
      complete entries of all dealings and transactions in relation to their
      business and afford to the Purchaser full access thereto;

	 	 
	4.1.6 	
      engage an independent accounting firm to audit annual
      financial statements or review interim period financial statements, given
      year end or period end fall into the Interim Period;

	 	 
	4.1.7 	
      promptly notify the Purchaser of any law suits, claims,
      legal proceedings or governmental investigations which may occur, be
      threatened, brought, asserted or commenced against the Companies or the
      Operator involving or affecting the Interest.

	 	 
	4.1.8 	
      keep the Purchaser informed and consult with the
      Purchaser in respect of all material facts, matters and things relating to
      the Companies and the Interest and all material operations carried out
      there under;

	 	 
	4.1.9 	
      not exercise any rights in respect of material matters
      under the relevant LICENSING AGREEMENTs or relating to the Interest,
      except in a case of emergency, without first obtaining the Purchaser’s
      consent,

	 	 
	4.1.10 	
      as soon as possible following any material decision made
      under the LICENSING AGREEMENTs, or relating to any of the Interest ,
      notify the Purchaser of that decision; and

	 	 
	4.1.11 	
      not without the Purchaser’s prior written approval amend
      or terminate any of the LICENSING AGREEMENTs.

Without prejudice to the generality of the foregoing provisions
of this Clause 4, the Seller shall, between the date of this Agreement and
Completion, procure that the Companies shall keep the Purchaser informed of the
making of any payments for amounts greater than the equivalent of USD10,000 (or
its equivalent in foreign currency). 

	4.2 	
      Between the date of this Agreement and Completion the
      Seller shall procure that, unless consented to by the Purchaser, the
      Companies shall not nor shall they agree to:

	 	 
	4.2.1 	
      allot or issue (whether by way of option over shares or
      the issue of any rights convertible into shares or otherwise) any shares
      in their capital;

	 	 
	4.2.2 	
      create, or agree to create, any Encumbrance over any
      shares,

	 	 
	4.2.3 	
      make any alteration to their deed of incorporation
      including the articles of association;

	 	 
	4.2.4 	
      dispose, or agree to dispose or grant any option or right
      in respect of the Interest;

5 

	4.2.5 	
      discontinue or cease to operate all or a material part of
      their business;

	 	 
	4.2.6 	
      make any change in the nature of their
business;

	 	 
	4.2.7 	
      enter into, amend or terminate any Major
  Contract;

	 	 
	4.2.8 	
      approve any work programs or budgets; or

	 	 
	4.2.9 	
      sell or transfer any assets of the Companies other than
      those which would normally be made in the usual conduct of its
      business;

	 	 
	4.2.10 	
      give notice of or otherwise institute any sole risk
      operations or agree to surrender any area covered by the LICENSING
      AGREEMENTs;

	 	 
	4.2.11 	
      declare or pay any dividend or other distribution or
      repay any share premiums. These provisions do not include restriction on
      distribution of retained profit of *** for paying dividends which were
      accumulated before Economic Date;

	 	 
	4.2.12 	
      perform or omit any act which would cause a breach of any
      Major Contract of the Companies;

	 	 
	4.2.13 	
      make any capital commitment, borrowing or expenditure
      other than those which would normally be made in the usual conduct of its
      business;

	 	 
	4.2.14 	
      execute any document amending, waiving or cancelling any
      provision of the LICENSING AGREEMENTs.

	 	 
		
      For purposes of this Clause 4, a matter is “material” if
      it is entailing financial impacts exceeding USD 10,000 (or its equivalent
      in foreign currency).

ARTICLE 5 Completion 

Completion shall occur at the office of Seller, not later than
the seventh Business Day after the notification by the Seller pursuant to
Article 3.5 above that the Conditions Precedent have been fulfilled. 

	5.1 	
      At Completion:

	5.1.1 	
      the Seller shall do or procure to be done those things
      set out in Part 1of the Schedule 5, provided that the Seller shall be the
      custodian of all closing documentation;

	 	 
	5.1.2 	
      the Purchaser shall do or procure to be done those things
      set out in Part 2 of Schedule 5; and

	 	 
	5.2 	
      As soon as reasonably practicable, but in any case within
      twenty (20) Business Days after Completion, the Purchaser undertakes to
      the Seller that it shall (a) record the transfer of the Shares in the
      share register book of ***, (b) register or file all matters in connection
      with Completion which are required or necessary to register or to file
      with the Ministry of Energy and Industry, Republic of Tajikistan,
      including but not limited to the change of directors of the Companies, and
      the filing of the new shareholders list of the Companies, and (c) notify
      the relevant banks and effect the change of authorised signatories in
      connection with the banking facilities of the Companies. Upon completion
      of all the registrations and notifications described above, the Purchaser
      shall as soon as reasonably practicable notify the Seller, and provide the
      Seller with reasonably satisfactory evidence of such registration, filing,
      and notification, as the case may.

6 

	5.3 	
      Within twenty (20) Business Days of the Completion Date,
      Parties shall with mutual agreement, make following appointments in
      respect of ***:

	 	• 	Management team. 
	 	• 	Legal advisors. 
	 	• 	Auditor. 

	5.4 	
      Within twenty (20) days of the Completion Date, Parties
      shall enter into a fully termed Shareholders Agreement (“SHA“), containing
      inter alia following provisions:

	 	• 	Number of Directors: 4 Purchaser, 1 Seller.
  
	 	• 	Chairperson shall be nominee of Purchaser.
  
	 	• 	Governing law shall be laws of England, UK.
  

ARTICLE 6 Independent Accountants 

	6.1 	
      If any matters are reserved for determination by
      Independent Accountants:

	6.1.1 	
      the Independent Accountants shall be instructed
  to:

	 	 	 
		a) 	
      make its determination within the shortest practicable
      time following referral of the matter to the Independent
  Accountant;

	 	 	 
		b) 	
      prescribe the procedure to be followed by the parties in
      order to facilitate determination; and

	 	 	 
		c) 	
      submit the determination in writing to the Seller and the
      Purchaser.

	6.1.2 	
      the Seller and the Purchaser shall:

	 	 	 
		a) 	
      notify the Independent Accountants in writing of the
      matters reserved for determination and each provide (and to the extent
      they are reasonably able procure that their respective accountants, and
      the Purchaser shall procure that ***, provide) the Independent Accountants
      promptly, and in any event within ten (10) Business Days of the
      Appointment Day, with all information which they may reasonably require
      and the Independent Accountants shall be entitled (to the extent they
      consider it appropriate) to base their opinion on such information and on
      the accounting and other records of ***; and

	 	 	 
		b) 	
      accept the determination of the Independent Accountants
      (in the absence of manifest error) as final and binding;

	 	 	 
		c) 	
      the Independent Accountants shall act as experts and not
      as arbitrators; and

	 	 	 
		d) 	
      the costs of the determination, including fees and
      expenses of the Independent Accountants, shall be borne equally by the
      Seller and the Purchaser.

ARTICLE 7 Loans and Guarantees 

	7.1 	
      The parties acknowledge that the Consideration has been
      agreed on the basis that no indebtedness of any kind (regardless of
      whether presently payable) is owed by any member of the Seller’s Group to
      the Companies or from the Companies to the Seller’s Group, other
    than:

	 	 	 
		(a) 	
      any amounts which may be due or become due by way of
      trade credit in the ordinary course of trading as a result of goods or
      services supplied on normal arm's length terms;

	 	 	 
		(b) 	
      any amounts which may fall to be paid pursuant to any
      express provision of this Agreement or any of the documents required to be
      executed or delivered pursuant to the provisions of this
  Agreement;

	 	 	 
		(d) 	
      any amounts provided for in connection with service
      agreements with Affiliates of the Seller during the Interim Period;
    and

7 

	 	(e) 	
      any amounts provided for in the Economic Date
      Accounts.

	7.2 	
      The Seller shall procure that on Completion, Companies
      are released from all guarantees and indemnities given by it in respect of
      any liability or obligation of any member of the Seller’s Group, or
      alternatively if such releases are not granted, Seller shall defend,
      indemnify and hold harmless Purchaser’s Group against any and all claims
      arising out of such guarantees and indemnities. Purchaser shall ensure
      after the Completion Date that Seller’s Group is released from all
      guarantees and indemnities given by it in respect of any liability or
      obligation of the Companies; or, alternatively, if such releases are not
      granted, Purchaser shall defend, indemnify, and hold harmless Seller’s
      Group against any and all claims arising out of such guarantees and
      indemnities.

ARTICLE 8 the Seller's Warranties 

	8.1 	
      The Seller represents and warrants to the Purchaser that,
      except as disclosed to the Purchaser in the Disclosure Letter, as of the
      date of this Agreement and such representations shall be deemed to be
      repeated immediately prior to Completion, each of the statements set out
      in the Schedule 3 is true and accurate.

	 	 
	8.2 	
      The liability of the Seller in connection either with the
      Warranties, and any Warranty Claim, shall be subject to the limitations
      contained in, and to the other provisions ofSchedule4 of this
      Agreement.

	 	 
	8.3 	
      Any payment made by the Seller in respect of a Warranty
      Claim brought by the Purchaser shall: be reduced by the amount of any
      savings in Taxation enjoyed by the Purchaser, and/or its Affiliates, or
      *** in connection with the circumstances which gave rise to the
    claim.

	 	 
	8.4 	
      If the Purchaser becomes aware of a matter which is
      likely to give rise to a Warranty Claim, the Purchaser shall give notice
      of the relevant facts to the Seller as soon as reasonably practicable
      after becoming aware of those facts and in any event within thirty (30)
      days of becoming aware of those facts.

ARTICLE 9 Purchaser's Warranties 

The Purchaser warrants to the Seller that each of the
statements set out below is true and accurate in all material respects: 

	9.1 	
      Purchaser is a corporation validly existing under the
      laws of Switzerland, with the requisite power and authority to enter into
      and perform, and has taken all necessary corporate action to authorise the
      execution and performance of, its obligations under this
  Agreement;

	 	 
	9.2 	
      this Agreement constitutes valid and binding obligations
      of the Purchaser;

	 	 
	9.3 	
      other than as contemplated by this Agreement, no notices,
      reports or filings are required to be made by the Purchaser in connection
      with the transactions contemplated by this Agreement, nor are any
      consents, approvals, registrations, authorisations or permits required to
      be obtained by the Purchaser in connection with the execution and
      performance of this Agreement; and

ARTICLE 10 Protective Covenants 

	10.1 	
      The Seller covenants with the Purchaser that it shall not
      and shall procure that no member of the Seller’s Group shall without the
      Purchaser’s consent (except as required by law or any competent regulatory
      body, including the applicable rules of any stock exchange) disclose
    or divulge to any third party any material information of a
      secret or confidential nature relating exclusively to the business or
      affairs of Companies, except to the extent the information has entered the
      public domain other than by reason of an unauthorised act or default of
  the Seller.

8 

	10.2 	
      The Purchaser covenants with the Seller that it shall not
      and shall procure that no member of the Purchaser’s Group shall without
      the Seller’s consent (except as required by law or any competent
      regulatory body, including the applicable rules of any stock exchange)
      disclose or divulge to any third party any material information of a
      secret or confidential nature relating exclusively to the business or
      affairs of the Companies that has been disclosed to it pursuant to this
      Agreement, except to the extent the information has entered the public
      domain other than by reason of an unauthorised act or default of the
      Purchaser.

ARTICLE 11 Tax 

	11.1 	
      The Seller shall be liable for any Taxation liabilities
      of the Companies and/ or the Interest for periods up to the Economic Date
      and shall indemnify and hold harmless the entity of the Purchaser’s Group
      against which any such Taxation liability is levied.

	 	 
	11.2 	
      It is agreed that the Seller and the Purchaser shall each
      be responsible for the payment of its own taxes, duties or other charges
      deriving from the transfer under this Agreement in accordance with the
      laws, rules and regulations of Tajikistan or other applicable laws,
      provided that any stamp duty related to the registration process of the
      transaction or transfer of shares envisaged by this Agreement owing under
      the laws, rules and regulations of Tajikistan shall be the responsibility
      of and paid by the Purchaser.

ARTICLE 12 Confidentiality 

	12.1 	
      Subject to Article 12.4, neither the Seller nor the
      Purchaser shall make (or permit any other member of the Seller’s Group or
      the Purchaser's Group to make) any announcement concerning this sale and
      purchase or any ancillary matter before Completion, and on and thereafter
      without the prior written consent of the other parties, the same not to be
      unreasonably withheld.

	 	 	 
	12.2 	
      The Purchaser, each member of the Purchaser’s Group, its
      lawyers and other professional consultants shall:

	 	 	 
		(a) 	
      keep confidential all information provided to it by or on
      behalf of the Seller or otherwise obtained by or in connection with this
      Agreement which relates to any member of the Seller’s Group;

	 	 	 
		(b) 	
      if after Completion, Purchaser holds confidential
      information relating to the Seller’s Group, it shall keep that information
      confidential and, to the extent reasonably practicable, other than
      information as may be reasonably required by the Purchaser to retain for
      legal, tax or financial/accounting purposes, shall return that information
      to the Seller or destroy it, in each case without retaining copies;
    and

	 	 	 
		(c) 	
      in respect of any Excluded Records which the Purchaser
      may receive or be in possession of, the Purchaser agrees to hold the same
      in strict confidence, not to disclose them to any third party and not to
      use them for any purpose whatsoever. To the extent that the Purchaser
      becomes aware that it is possession of Excluded Records in written or
      other tangible form (including information stored electronically), the
      Purchaser agrees as soon as reasonably practicable to return to the Seller
      or destroy such information, or cause such information to be returned to
      the Seller, in each case at the Seller's sole
discretion.

9 

	12.3 	
      The Seller, each member of the Seller Group, its lawyers
      and other professional consultant shall:

	 	 	 
		(a) 	
      keep confidential all information provided to it by or on
      behalf of the Purchaser or otherwise obtained by or in connection with
      this Agreement which relates to any member of the Purchaser's Group;
      and

	 	 	 
		(b) 	
      if after Completion, the Seller, each member of the
      Seller Group, its lawyers and other professional consultants hold
      confidential information relating to the Companies, they shall keep that
      information confidential and, other than the Excluded Records or as may be
      required by Seller to retain for legal, tax, or financial/accounting
      purposes, shall return that information to the Purchaser or destroy it, in
      each case without retaining copies.

	 	 	 
	12.4 	
      Nothing in this clause prevents any announcement being
      made or any confidential information being disclosed:

	 	 	 
		(a) 	
      with the written approval of the other parties, which in
      the case of any announcement shall not be unreasonably withheld or
      delayed; or

	 	 	 
		(b) 	
      to the extent required by law, stock exchange regulations
      or any competent regulatory body, but a party required to disclose any
      confidential information shall promptly notify the other party, so far as
      practicable and lawful with regard to timing, content and other
      requirements of such law, stock exchange regulations or regulatory body,
      before disclosure occurs and co-operate with the other party regarding the
      timing and content of such disclosure.

	 	 	 
	12.5 	
      Nothing in this clause prevents disclosure of
      confidential information by any party:

	 	 	 
		(a) 	
      to the extent that the information is in or comes into
      the public domain other than as a result of a breach of any undertaking or
      duty of confidentiality by that party; or

	 	 	 
		(b) 	
      to that party's professional advisers, lawyers, auditors
      or bankers, but before any disclosure to any such person the relevant
      party shall procure that he is made aware of the terms of this clause and
      shall use its best endeavours to procure that such person adheres to those
      terms as if he were bound by the provisions of this
  clause.

ARTICLE 13 Notices 

	13.1 	
      Any notice given in connection with this Agreement must
      be in English. Any other document provided in connection with this
      Agreement must be in English or accompanied by a certified English
      translation; in this case, the English translation prevails unless the
      document is a statutory or other official document.

	 	 
	13.2 	
      Any notice or other formal communication given under this
      Agreement must be in writing (which includes fax, but not email) and may
      be delivered or sent by courier or fax to the party to be served as
      follows:

10 

	(a)      to the Seller at: 	(b)      to the
      Purchaser at: 
	  	  
	*** 	Bahnhofstr. 9 
	 	 
	*** 	6341 Baar, Switzerland 
	 	 
	*** 	E-Mail: Wladwein@Manaspetroleum.Com 
	 	 
	E-Mail: 	Attention: Dr. Werner Ladwein 
	*** 	  
	 	 
	Attention: *** 	  

or at such other address or fax number
as it may have notified to the other party in accordance with this clause. 

	13.3 	
      Any notice or other formal communication shall be deemed
      to have been given:

	 	 	 
		(a) 	
      if delivered personally, at the time of delivery;
    or

	 	 	 
		(b) 	
      if sent via courier, at 10.00 a.m. on the fourth Business
      Day after it was accepted by the courier company for delivery;
or

	 	 	 
		(c) 	
      if sent by fax, provided the fax is in readable form, on
      the date of transmission, if transmitted before 3.00 p.m. on any Business
      Day, and in any other case on the Business Day following the date of
      transmission, with a copy of the notice or other communication also sent
      by post.

	 	 	 
	13.4 	
      In proving service of a notice or other formal
      communication, it shall be sufficient to prove that delivery was made or
      that the envelope containing the communication was properly addressed and
      despatched via courier, as the case may be or that the fax was properly
      addressed and successful transmission electronically confirmed, as the
      case may be.

ARTICLE 14 Further Assurances 

	14.1 	
      In relation to ***, the Seller shall procure the
      convening of all meetings, the giving of all waivers and consents and the
      passing of all resolutions as are necessary under the applicable laws
      dealing with private limited companies, its articles of association, or
      any agreement or obligation affecting it to give effect to this
      Agreement.

	 	 
	14.2 	
      On or after Completion, the parties shall, at their own
      cost and expense, execute and do (or procure to be executed and done by
      any other necessary party) all such deeds, documents, acts and items as
      may from time to time be reasonably required in order to give full effect
      to all the transactions or activities contemplated under this
      Agreement.

ARTICLE 15 Assignments 

	15.1 	
      Each Party may assign the benefit of this Agreement to
      any member of its Group and if it does so:

11 

	 	(a) 	
      the assignee may enforce the obligations of the other
      Party (including the Warranties given by the Seller) under this Agreement
      as if it had been named in this Agreement as a Party ;

	 	 	 
	 	(b) 	
      each Party may nevertheless enforce this Agreement
      against the other Party, as if that assignment had not occurred;

	 	 	 
	 	(c) 	
      the assignment shall not in any way operate so as to
      increase or reduce the respective rights and obligations on the part of
      the assigning Party or its assignee on the one hand and the other Party on
      the other hand; and

	 	 	 
	 	(d) 	
      where applicable, if the assignee ceases to be a member
      of the Seller’s Group or the Purchaser's Group, the Seller or the
      Purchaser as the case may be shall procure that the benefit of this
      Agreement is re-assigned to the Seller or the Purchaser as the case may be
      or another member of the Seller’s Group or the Purchaser's
  Group.

	15.2 	
      Except as permitted by this clause, none of the rights or
      obligations under this Agreement may be assigned or transferred by a Party
      without prior approval of the other Party.

ARTICLE 16 General 

	16.1 	
      Each of the obligations, warranties and undertakings set
      out in this Agreement (excluding any obligation which is fully performed
      at Completion) shall continue in force after Completion.

	 	 	 
	16.2 	
      Unless otherwise agreed between Purchaser and Seller, if
      the Purchaser or Seller defaults in the payment when due of any sum
      payable under this Agreement, (howsoever determined) its liability shall
      be increased to include interest on such sum from the date when such
      payment is due until the date of actual payment (as well as before
      judgment) at a rate per annum of LIBOR plus one percent. Such interest
      shall accrue from day to day.

	 	 	 
	16.3 	
      Each party shall pay the costs and expenses incurred by
      it in connection with the entering into and completion of this
      Agreement.

	 	 	 
	16.4 	
      In addition to the provisions of Schedule 4, the
      Purchaser shall make available to the Seller any books or records of
      Companies (or, if practicable, the relevant parts of those books or
      records) which are required by the Seller for the purpose of dealing with
      its corporate, tax, or reporting obligations or affairs and, accordingly,
      the Purchaser shall, upon being given reasonable notice by the Seller and
      subject to the Seller giving such undertaking as to confidentiality as the
      Purchaser shall reasonably require, procure that such books and records
      are made available to the Seller for inspection during working hours and
      copying at the Seller’s expense for and only to the extent necessary for
      such purpose and for a period of six years from Completion.

	 	 	 
	16.5 	
      This Agreement may be executed in any number of
      counterparts. This has the same effect as if the signatures on the
      counterparts were on a single copy of this Agreement.

	 	 	 
	16.6 	
      The rights of each party under this Agreement:

	 	 	 
		(a) 	
      may be exercised as often as necessary;

	 	 	 
		(b) 	
      are cumulative and not exclusive of rights and remedies
      provided by law; and

	 	 	 
		(c) 	
      may be waived only in writing and
  specifically.

12 

		
      Delay in exercising or non-exercise of any such right is
      not a waiver of that right.

	 	 
	16.7 	
      Except as expressly stated in this Agreement, a person
      who is not a party to this agreement may not enforce any of its terms
      under the Contracts (Rights of Third Parties) Act 1999.

	 	 
	16.8 	
      This Agreement will only be signed in English. However,
      an unofficial translation of this Agreement in Russian shall be initialled
      by the Seller. In case of any conflict, this official English version of
      the Agreement shall prevail.

ARTICLE 17 Whole Agreement 

	17.1 	
      This Agreement and the documents referred to in it
      contain the whole agreement between the parties relating to the
      transactions contemplated by this Agreement and supersede all previous
      agreements between the parties relating to these transactions.

	 	 
	17.2 	
      Each party acknowledges that in agreeing to enter into
      this Agreement it has not relied on any representation, warranty,
      collateral contract or other assurance (except those set out in this
      agreement) made by or on behalf of any other party before the signature of
      this Agreement. Each party waives all rights and remedies which, but for
      this Article, might otherwise be available to it in respect of any such
      representation, warranty, collateral contract or other
  assurance.

ARTICLE 18 Governing Law 

This Agreement is governed by and shall be construed in
accordance with laws of England and Wales without giving effect to any choice of
law principles thereof which would result in the application of the laws of
another jurisdiction. 

ARTICLE 19 Arbitration 

All disputes arising out of or in connection with this
Agreement shall be finally settled under the UNCITRAL arbitration rules by three
(3) arbitrators appointed in accordance with the said rules. The place of
arbitration shall be London, UK. The language of the arbitration shall be
English. 

THIS AGREEMENT HAS BEEN SIGNED BY THE PARTIES (OR THEIR DULY
AUTHORISED REPRESENTATIVES) ON THE DATE STATED AT THE BEGINNING OF THIS
AGREEMENT. 

13 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED
  AND REPLACED WITH “***”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
  SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
  TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
  SECURITIES EXCHANGE ACT OF 1934. 

 

SCHEDULE 1 

PART 1 – *** Corporate Details 

 

Registered number:*** 

 

Registered office: *** 

 

Date and place of incorporation: *** 

 

Directors: 

 

*** 

  *** 

 

Shareholders: *** 

 

Paid-in capital stock: *** 

SCHEDULE 1 

PART 2 – ***’s Interests 

	A. 	*** holds 100% interests in ***, a joint venture company
      incorporated under the laws of Tajikistan ***.

	 	 
	B. 	*** owns 100% interests in *** onshore Tajikistan and
      related assets, including following ***:

-    *** 

  -    *** 

  -    *** 

  -    *** 

  -    *** 

  -    *** 

  -   
  *** 

  -    *** 

	C. 	On ***, Ministry of Energy and Industry has issued
      following *** licences in respect of above listed *** (i.e. LICENSING
      AGREEMENTS) and also valid until ***:

Licence No *** 

  Licence No *** 

  Licence No *** 

2 

SCHEDULE 2 

Map of Areas *** 

 

 

 

3 

SCHEDULE 3 

Seller’s Warranties 

1.          GENERAL 

	1.1 	Due Incorporation and Capacity

	 	 
		The Seller is a corporation validly existing under the
      laws of *** with the requisite power and authority to enter into and
      perform, and has taken all necessary corporate action to authorise the
      execution and performance of, its obligations under this
      agreement.

	 	 
	1.2 	Valid Obligations

	 	 
		This Agreement constitutes valid and binding obligations
      of the Seller.

	 	 
	1.3 	Filings and Consents

	 	 
		Other than as contemplated by this Agreement, no material
      notices, reports or filings are required to be made by the seller in
      connection with the transactions contemplated by this Agreement, nor are
      any consents, approvals, registrations, authorisations or permits required
      to be obtained by the seller in connection with the execution and
      performance of this Agreement.

	 	 
	1.4 	Recitals

	 	 
		The particulars relating to *** set out in the recitals
      and the Schedules to this Agreement are true and accurate.

	 	 
	1.5 	Incorporation

	a) 	*** is a corporation validly existing under the laws of
      *** with full power and authority to conduct its business as presently
      conducted.

	 	 
	b) 	*** is a corporation validly existing under the laws of
      *** with full power and authority to conduct its business as presently
      conducted.

	 	 
	c) 	The books (including all registers and minute books) of
      *** and *** are up to date and have been properly kept and no notice or
      allegation that any of them is incorrect or should be rectified has been
      received.

	1.6 	Ownership of Shares

	a) 	The shares described in the Schedule 1 constitute 100% of
      the issued and allotted share capital of *** and are fully paid up and ***
      has not exercised or purported to exercise or claimed any lien over
      them.

	 	 
	d) 	There is no option, right to acquire, conversion right,
      mortgage, charge, pledge, lien or other form of security or encumbrance
      on, over or affecting any of the Shares and there is no agreement or
      commitment to give or create any of the foregoing.

	 	 
	e) 	The Seller is entitled to transfer or procure the
      transfer of the full legal and beneficial ownership in the Shares to the
      Purchaser on the terms set out in this Agreement.

	 	 
	f) 	*** has not issued or agreed to issue any loan
      capital.

4 

	1.7 	Subsidiaries and associates

	 	 
		As of the Completion Date: *** will be the beneficial
      owner of 100% of the issued share capital of ***; Other than ***, *** will
      not have any interests and will not hold or beneficially own, control, nor
      agree to acquire, any shares of any other corporation.

	 	 
		*** will not have any subsidiary and will not hold or
      beneficially own, control, nor agree to acquire, any shares of any other
      corporation.

	 	 
	1.8 	Assets

	a) 	Particulars of each fixed asset with a value in excess of
      USD 10,000.00 acquired or agreed to be acquired by *** or *** since the
      Accounts Date are set out in the Disclosure Letter.

	 	 
	b) 	Except for assets offered for sale or sold in the
      ordinary course of business, neither *** nor *** has since the Accounts
      Date disposed or agreed to dispose of any of the assets included in the
      Accounts or any asset acquired or agreed to be acquired since the Accounts
      Date, in each case with a book value in excess of USD 10,000.00.

	 	 
	c) 	All material records and information belonging to *** and
      *** (whether or not held in written form) are in its exclusive possession
      and/or under its control, and all such records and information are subject
      to access by it; provided, however, that all Excluded Records shall become
      the property, and be in the sole possession, of the Seller.

	 	 
	d) 	The assets included in the Accounts or acquired by *** or
      *** since the Accounts Date (other than trading stock disposed of since
      that date in the ordinary course of business) are the property of *** or,
      as the case may be, ***, free from any Encumbrance and are not the subject
      of any leasing, hiring or hire-purchase agreement, and all such assets are
      in the possession or under the control of *** or, as the case may be,
      ***.

	 	 
	e) 	Seller warrant validity of LICENSING AGREEMENTS, land
      entitlements, royalty agreements, tax rates, etc as of the date of signing
      this Agreement as well as the Completion Date.

	 	 
	f) 	Seller warrants to be responsible for any claim arising
      from its past relationship with ***.

	 	 
	g) 	Seller warrants that it does not have knowledge of any
      liabilities and contingent liabilities other than those identified during
      Audit and Due Diligence and disclosed in the Disclosure Letter and
      Annexure 2. Seller further warrants that any liability not disclosed in
      the aforementioned Annexure, including environment and tax liabilities
      will be handled by Seller at Seller’s expense (via downward adjustment of
      Seller`s shareholding in ***).

	1.9 	Economic Date Accounts

	a) 	The Economic Date Accounts will be prepared in accordance
      with applicable laws and GAAP.

	 	 
	b) 	fairly present the state of affairs, the assets and the
      liabilities of *** and *** as at the Economic Date and of the profit or
      loss of *** and *** for the period ended on said date;

	 	 
	c) 	will be prepared on a proper and consistent basis in
      accordance with the basis employed in ***’s and ***’ audited accounts for
      each of the three preceding financial periods and all accounts required by
      law to be delivered or made to any authority have been duly and correctly
      delivered or made;

	 	 
	d) 	will be audited or reviewed as outlined in Article 4.1.6
      of this Agreement.

	 	 
	e) 	contain such provisions and deferred tax assets as are
      required by GAAP to cover all taxation and other liabilities of *** and
      *** as at the Economics Date;

5 

	f) 	The tax book value of the assets and liabilities of ***
      under *** law and the tax book value of the assets and liabilities of ***
      under Tajikistani law provided by Seller pursuant to Article 3.1.5 of this
      Agreement is accurate.

	1.10 	Position since Accounts
      Date

	a) 	*** and *** have carried on their business in the normal
      course and there has been no material and adverse change in the financial
      position of *** or ***;

	 	 
	b) 	except for any dividends provided for in the Accounts and
      Article 4.2.11 of this Agreement, no dividend, repayment of share premium,
      or other distribution or repayment has been declared, paid or made by ***
      or ***;

	 	 
	c) 	no share or loan capital has been issued or agreed to be
      issued by *** or ***;

	 	 
	d) 	no capital commitment has been entered into by *** or ***
      to spend monies other than in accordance with the capital expenditure
      budget set out in the Disclosure Letter; and

	 	 
	e) 	*** or *** have not entered into any Major
      Contract.

	1.11 	Licences and
      Compliance

	a) 	*** have conducted their businesses in accordance with
      all applicable laws, regulations and other requirements of authorities
      having jurisdiction over the Companies or the Interest and *** and ***
      directly or through the Operator have obtained all material licences,
      permissions, authorisations and consents required for the carrying on of
      the business now carried on by them in the places and in the manner in
      which that business is now carried on and such licences, permissions,
      authorisations and consents are in full force and effect.

	 	 
	b) 	Neither *** or *** nor to the knowledge of the Seller,
      the Operator has received notice that it is in default under any material
      licence, permission, authorisation or consent.

	 	 
	c) 	Neither *** nor *** has received notice that it is in
      violation of, or in default with respect to, any statute, regulation,
      order, decree or judgment of any court or any governmental agency of the
      jurisdiction in which it is incorporated.

	1.12 	Environment

	a) 	Notwithstanding any other term of this Agreement, the
      only Warranties that are given in relation to the environment are those
      contained in this paragraph.

	 	 
	b) 	In view of section 4.1.4 of the Audit Report, Seller and
      Purchaser shall agree on an Environment baseline in respect of all ***
      sites and wells– and Seller shall take responsibility for status of sites
      and wells as of the Completion Date. In this Environment baseline, all
      abandoned wells are to be identified.

	 	 
	c) 	*** and ***, to the Seller’s knowledge, have complied
      with all Environmental Law or Environmental Licence and neither *** nor
      *** has received any written notice or communication from which it appears
      that it is or may be in violation of any Environmental Law or
      Environmental Licence.

	 	 
	d) 	Neither *** nor ***, to the Seller’s knowledge, is
      engaged in any disputes, proceedings, litigation or arbitration
      proceedings concerning Environmental Laws or Dangerous Substances nor have
      the Companies nor to the Seller’s knowledge the Operator received any
      communication that there has been a material incident of pollution in
      relation to the Interest.

	 	 
	e) 	No payments have been made, are currently to be made, by
      *** or *** in respect of the Interest for any future abandonment or
      decommissioning obligations.

6 

	1.13 	Intellectual Property
      Rights

	a) 	No notice has been received by *** claiming that it
      infringes any right in confidential information or other intellectual
      property right of any third party.

	 	 
	b) 	So far as the Seller is aware, there is no outstanding
      infringement of any intellectual property rights referred to in sub-para
      (a) above by *** or ***.

	1.14 	Contracts

	a) 	Neither *** nor *** has received notice that it is in
      default under any agreement, mortgage, charge, lien or pledge, nor has it
      received notice that it is in breach or default of the LICENSING
      AGREEMENTs.

	 	 
	b) 	*** is the legal and beneficial owner of the Interest,
      free from Encumbrances. The LICENSING AGREEMENTs are in full force and
      effect, and no act or omission of *** or *** has occurred which would or
      might reasonably entitle any competent authority to revoke, vary or
      terminate the LICENSING AGREEMENTs. The LICENSING AGREEMENTs are not in
      the course of being surrendered. No sole risk or non-consent proposals are
      proposed or existent under the LICENSING AGREEMENTs. All compulsory work
      obligations have been fulfilled and no notice have been given by the
      Government of any intention to require any further work of a material
      nature to be performed under the LICENSING AGREEMENTs. .

	 	 
	c) 	There are no subsisting contracts to which *** or *** is
      a party and in which any member of the Seller’s Group has an interest
      (other than, in the case of the Seller, its interest in the
      Shares).

	 	 
	d) 	Other than in relation to the LICENSING AGREEMENTs,
      neither *** nor *** are a party to any other Major Contract, nor have they
      agreed to become, a member of any partnership or other unincorporated
      association, joint venture or consortium (other than recognised trade
      associations).

	1.15 	Indebtedness

	a) 	Neither *** nor *** has received any notice to repay any
      borrowings or indebtedness under any agreements relating to any borrowing
      (or indebtedness in the nature of borrowing) which are repayable on
      demand; and no event of default has occurred and is outstanding under any
      agreement relating to any other borrowing or indebtedness in the nature of
      borrowing or other credit facility of *** or ***.

	 	 
	b) 	Neither *** nor *** has any outstanding Group Loans,
      borrowings, debts loan capital or any money borrowed or raised (other than
      under its bank facilities or normal trade credits).

	 	 
	c) 	Neither *** nor *** has lent any money which is due to be
      repaid and, as at the date of this Agreement, has not been repaid or owns
      the benefit of any debt other than debts accrued in the ordinary course of
      its business.

1.16      Litigation 

Except as set out in the disclosure letter, neither *** nor ***
  is a party to any litigation, arbitration or administrative proceedings.
  Disclosure letter includes mention of *** concerning *** which appears to be
  closed matter. 

1.17      Insurances 

*** has taken out insurances on the basis and in respect of the
  risks referred to in the list of insurance cover contained in Schedule 6 hereto
  and: 

	(a) 	no policies shall be in force and effect at and after
      Completion;

7 

	(b) 	such policies will be in full force and effect up to (but
      not including) Completion in accordance with their respective
      terms.

	 	 
	(c) 	All the assets and undertakings of *** of an insurable
      nature are and have at all times been insured in amounts representing
      their full replacement or reinstatement value against all risks normally
      insured by companies on the same classes of businesses as ***’s
      business.

1.18      Employees 

List of employees of *** and *** provided pursuant to Article
  3.2.5 of this Agreement shall be accurate as of the Completion Date. 

1.19      Liquidation 

	a) 	No administrator, receiver or administrative receiver or
      local equivalent has been appointed in respect of the whole or any part of
      the assets of *** or ***.

	 	 
	b) 	No petition has been presented, no order has been made
      and no resolution has been passed for the winding-up of *** or
      ***.

	 	 
	c) 	Neither *** nor *** is insolvent or unable to pay its
      debts and neither *** nor *** has stopped paying its debts as they fall
      due.

	 	 
	d) 	No voluntary arrangement or compromise or other
      arrangement with creditors has been proposed, agreed or sanctioned under
      any applicable law in respect of *** or ***.

2.        Tax Warranties 

2.1      General 

	a) 	All Taxation of any nature whatsoever for which *** and
      *** is liable until the Completion Date has within the time limits
      prescribed by the relevant legislation been or will be duly and correctly
      paid or provided for.

	 	 
	b) 	To Seller’s knowledge, all notices, computations and
      returns which ought to have been given or made, have been properly and
      duly submitted by *** and/or *** to the relevant Taxation authorities and
      all information, notices, computations and returns submitted to such
      authorities are true, accurate and complete and are not the subject of any
      dispute nor, to the knowledge of *** or ***, are they likely to become the
      subject of any dispute with such authorities. All records which *** and/or
      *** are required to keep for Taxation purposes or which would be needed to
      substantiate any claim made or position taken in relation to Taxation by
      *** and/or ***, have been properly and duly kept and are available for
      inspection at the premises of *** and/or *** respectively.

	 	 
	c) 	All claims or other requests for any particular treatment
      relating to Taxation that have been taken into account in computing any
      amount in the Economic Date Accounts have been duly made. All tax
      liabilities which are not already paid are duly provided for.

	 	 
	d) 	The amount of Taxation chargeable on *** or *** during
      any accounting period ending on or within ten years before the Economic
      Date has not been affected to any material extent by any concession,
      arrangements, agreement or other formal or informal arrangement with any
      Taxation authority (other than such LICENSING AGREEMENTs, agreements or
      arrangements available to companies generally).

	 	 
	e) 	Neither *** nor *** are liable to pay, nor to their
      knowledge are there any circumstances by reason of which either is likely
      to become liable to pay any interest, penalty, surcharge or fine relating
      to Taxation.

	 	 
	f) 	Neither *** nor *** have been subject to or is currently
      subject to any investigation, audit or visit by any Taxation or excise
      authority, and neither the Seller, *** nor *** are aware of any such
      investigation, audit or visit planned for the next twelve
      months.

8 

	g) 	Neither *** nor *** have any liability in respect of
      Taxation arising in any part of the world in respect of income, profits or
      gains arising or deemed to arise before the Economic Accounts Date or in
      respect of any event occurring or deemed to occur before the Economic
      Accounts Date that is not provided for in full in the Accounts.

	 	 
	h) 	*** and *** have not been involved in any transaction
      outside the ordinary course of business which has given or may give rise
      to a liability to Taxation on ***.

	 	 
	i) 	It has complied with Tajik tax requirements with respect
      to the contemplated transaction, and that any taxes imposed on *** as a
      result of *** transferring shares of *** into Seller, and Seller
      transferring shares of *** into ***, are to be paid by
      Seller.

2.2      Deductions and
  Withholdings 

	a) 	*** and *** have made all deductions in respect, or in
      account, of any Taxation from any payments made by it which it is obliged
      or entitled to make and has accounted in full to the appropriate authority
      for all amounts so deducted.

	 	 
	b) 	Neither *** nor *** have received any notice from any
      Taxation authority which required or will require any of them to withhold
      Taxation from any payment made since the Economic Date (in respect of
      which such withheld Taxation has not been accounted for in full to the
      appropriate authority).

2.3      Tax Residence 

	 	A) 	*** is not treated for any taxation purpose as resident
      in a country other than the country of its incorporation and *** does not
      have, nor has had a branch, agency or permanent establishment in a country
      other than the country of its incorporation. 

	 	b) 	*** is resident in Tajikistan, the country of its
      incorporation and does not have, nor has had a branch, agency or permanent
      establishment in a country other than Tajikistan. 

2.4      Transfer Pricing 

No transactions or arrangements involving *** nor *** have
  taken place within the past two years or are in existence which are such that
  any provision relating to transfer pricing might be invoked by a taxation or
  excise authority. 

2.5      Deemed Income and
  Profits 

Except as provided in the accounts, *** and *** do not have a
  liability to taxation on income or profits except in respect of and to the
  extent of income and profits actually received, nor do any arrangements exist
  which might give rise to such a liability. 

2.6      Value Added
  Tax

	a) 	For the purposes of this paragraph, VAT means
      value added tax.

	 	 
	b) 	*** is duly registered for the purposes of VAT in its
      country of incorporation.

	 	 
	c) 	*** has complied with all statutory provisions, rules,
      regulations, orders and directions concerning VAT, including the making on
      time of accurate returns and payments and the maintenance of
      records.

2.1      Stamp Duty 

9 

All stamp duty and similar taxes or duties have been correctly
  and duly paid in respect of all transactions executed prior to the date of
  completion. 

3          ACCURACY AND COMPELETENESS OF INFORMATION 

All facts material to the condition of the Interest, the
  business, *** and *** have been disclosed to the Purchaser in writing and the
  information contained in this Agreement or made available to the purchaser is
  true, correct and complete in all material aspects. The Seller is not aware of
  any fact or matter, including any omission, which would render any such
  information incorrect or misleading in any material aspect.

10 

SCHEDULE 4 

Limits on Warranty Claims 

	1. 	Acknowledgement

	 	 	 
		The Purchaser acknowledges and agrees that:

	 	 	 
		(a) 	the Warranties are the only representations, warranties
      or other assurances of any kind given by or on behalf of the Seller or any
      member of the Seller’s Group and on which the Purchaser may rely in
      entering into this Agreement;

	 	 	 
		(b) 	no other statement, promise or forecast made by or on
      behalf of the Seller or any member of the Seller’s Group may form the
      basis of, or be pleaded in connection with, any claim by the Purchaser
      under or in connection with this Agreement; and

	 	 	 
		(c) 	at the time of entering into this Agreement the Purchaser
      is not aware of a breach of the Warranties.

	 	 	 
	2. 	Conduct of third party
      claims

	2.1 	Subject to paragraph 2.2 below, if a Warranty Claim
      arises as a result of, or in connection with, a liability or alleged
      liability to a third party (a Third Party Claim), then the Seller
      may elect to assume the conduct of any appeal, dispute, compromise or
      defence of the Third Party Claim and of any incidental negotiations using
      legal counsel of the Seller’s choice and on the following terms:

	 	 	 
		(a) 	the Seller shall first agree to indemnify the Purchaser,
      *** and *** against all liabilities, charges, costs and expenses which
      they may incur in taking any such action as the Seller may reasonably
      require;

	 	 	 
		(b) 	the Purchaser shall procure *** and *** to make available
      to the Seller such persons and all such information as the Seller may
      reasonably require for assessing, contesting, appealing or compromising
      the Third Party Claim;

	 	 	 
		(c) 	the Purchaser shall procure that *** and *** take such
      action to contest, appeal or compromise the Third Party Claim as may
      reasonably be requested by the Seller and does not make any admission of
      liability, agreement, settlement or compromise in relation to the Third
      Party Claim without the approval of the Seller; and

	 	 	 
		(d) 	the Seller shall on an ongoing basis consult with and
      keep the Purchaser fully and promptly informed of the progress of the
      Third Party Claim and promptly provide the Purchaser with copies of all
      relevant documents and such other information in its possession as may be
      requested by the Purchaser.

	 	 	 
	2.2 	If a Warranty Claim arises as a result of, or in
      connection with a Third Party Claim in respect of which the Purchaser
      wishes to retain conduct of any appeal, dispute, compromise or defence and
      of any incidental negotiations, then the Purchaser shall notify the Seller
      of its intention to do so and paragraph 2.1 above shall not apply,
      provided in all such cases that the Seller shall not be liable to
      Purchaser or the third party under any circumstances whatsoever in respect
      of such Warranty Claim.

11 

3.      Mitigation 

Nothing in this Agreement shall be deemed to relieve the
  Purchaser from any duty to mitigate any loss or damage incurred by it as a
  result of any breach of the Warranties.

4.      Recovery
  from third parties 

This paragraph applies if: 

	 	(a) 	the Seller makes a payment (excluding any interest on a
      late payment) in respect of a Warranty Claim (the Damages Payment);
      and

	 	 	 
	 	(b) 	*** or the Purchaser receives any sum which would not
      have been received but for the circumstance which gave rise to that
      Warranty Claim (the Third Party Sum); and

	 	 	 
	 	(c) 	the receipt of the Third Party Sum was not taken into
      account in calculating the Damages Payment; and

	 	 	 
	 	(d) 	the aggregate of the Third Party Sum and the Damages
      Payment exceeds the amount required to compensate the Purchaser in full
      for the loss or liability which gave rise to the Warranty Claim in
      question, such excess being the Excess Recovery.

	 	 	 
	 	(e) 	If this paragraph applies, the Purchaser shall, promptly
      on receipt of the Third Party Sum by it, *** or *** repay to the Seller an
      amount equal to the lower of (i) the Excess Recovery and (ii) the Damages
      Payment, after deducting (in either case) all costs incurred by the
      Purchaser, *** or *** in recovering the Third Party Sum and any taxation
      payable by the Purchaser, *** or *** by virtue of its
      receipt.

5      Insurance 

Without prejudice to the Purchaser's duty to mitigate any loss
  in respect of any breach of the Warranties, if in respect of any matter which
  would otherwise give rise to a breach of the Warranties *** or *** are entitled
  to claim under any policy of insurance, the amount of insurance monies to which
  *** or *** are entitled (after deduction of any costs) shall reduce pro
    tanto or extinguish the claim for breach of the Warranties. 

6      Basis of damages 

No party hereunder shall be liable to another under any
  circumstances for punitive, indirect, or consequential damages, or for loss of
  profit or opportunity. 

12 

SCHEDULE 5 

Completion 

 

PART 1 - SELLER'S OBLIGATIONS 

At Completion the Seller shall procure, with regard to ***, the
  delivery to the Purchaser of: 

	(a) 	Notarized English translation of an official document
      showing that 100% of shares in *** is owned by ***.

	 	 
	(b) 	a duly executed deed of transfer in favour of the
      Purchaser or its nominee(s) of all the Shares;

	 	 
	(c) 	the articles of association, certificate confirming the
      tax registration, the board minutes and the shareholders’ register
      relating to the Shares;

	 	 
	(d) 	a board resolution of *** and Seller in which (i) the
      transfer referred to in paragraph (a) above is approved, and (ii) the
      amendment of all mandates to bankers terminating the authority of current
      *** authorised persons and giving authority to operate the bank accounts
      of *** to persons nominated by the Purchaser.

PART 2 - PURCHASER'S OBLIGATIONS 

AT COMPLETION THE PURCHASER SHALL: 

	(a) 	pay USD 3,900,000, subject to any necessary downward
      adjustment in accordance with this Agreement, being remaining part of
      Consideration together with interest on such amount pursuant to the
      Agreement to the Seller; and

	 	 
	(b) 	deliver to the Seller a certified copy of an extract of
      the resolutions of the board of directors (or a duly constituted committee
      of the board) of the Purchaser authorising the execution of this Agreement
      and any other agreements to be executed by the Purchaser at
      Completion.

13 

SCHEDULE 6 

Insurance Policies 

Insurance policies are attached: 

 

 

14 

SCHEDULE 7 

DEAL STRUCTURE 

***

15 

SCHEDULE 8 

Interpretation 

	1. 	In this Agreement:

	 	 
		Accounts means the audited financial statements
      for the period ending 30.09.2012;

	 	 
		Accounts Date means 30.09.2012;

	 	 
		Actions shall have meaning ascribed thereto in
      Recital F of this Agreement.

	 	 
		Affiliate means any company(ies) or legal
      entity(ies) that (i) controls either directly or indirectly a party; or
      (ii) is controlled directly or indirectly by a party; or (iii) is directly
      or indirectly controlled by a company or entity that directly or
      indirectly control a party. ‘Control’ means the ownership directly or
      indirectly of more than fifty percent (50%) of the voting rights in a
      company or legal entity;

	 	 
		Appointment Day means the date on which the
      Independent Accountants confirms in writing to the Purchaser and the
      Seller that it has accepted the instructions to act pursuant to clause 6
      of this Agreement;

	 	 
		Audit shall have meaning ascribed thereto in
      Recital C of this Agreement.

	 	 
		Business Day means a day (other than a Saturday or
      Sunday) on which banks are generally open in Dushanbe for normal
      business;

	 	 
		Companies means *** and ***;

	 	 
		Completion means completion of the sale and
      purchase of the Shares in accordance with this Agreement;

	 	 
		Completion Date means the date set forth in
      Article 3.2 of the Agreement;

	 	 
		Conditions Precedent means the conditions
      precedent to Completion set out in Article 3.2;

	 	 
		Dangerous Substance means any natural or
      artificial substance likely to cause harm to persons or any other living
      organism, or likely to cause damage to the environment or public health or
      welfare.

	 	 
		Disclosure Letter means the letter of the same
      date as this Agreement from the Seller to the Purchaser essentially
      confirming results of legal due diligence and Audit arranged by the
      Purchaser;

	 	 
		Due Diligence shall have meaning ascribed thereto
      in Recital E of this Agreement.

	 	 
		Economic Date means 31.12.2012;

	 	 
		Economic Date Accounts means the audited balance
      sheets as at the Economic Date and audited profit and loss accounts of
      both *** and *** for the year ended on that date;

16 

Encumbrance means any mortgage,
  charge (fixed or floating), pledge, lien, option, right to acquire, assignment
  by way of security, trust arrangement for the purpose of providing security or
  any other security interest of any kind, including retention arrangements and
  any agreement to create any of the foregoing; 

Environmental Laws means all
  statutes, notifications, regulations, Guidelines and binding court decisions
  applicable in Tajikistan concerning the protection of human health or the
  environment or the generation, transportation, storage, control of Waste and
  Pollutants, treatment or disposal of a Hazardous Waste, Dangerous Substance and
  capable of enforcement by legal process in the jurisdiction of operation of ***
  or ***; 

Environmental Licence means any
  permit, licence, authorisation, consent or other approval required under or in
  relation to any Environmental Law; 

EPA shall have the meaning
  ascribed thereto in Recital A of this Agreement. 

ESCROW shall have the meaning
  ascribed thereto in Article 3.1.6 of this Agreement. 

Excluded Records means all
  originals and copies of agreements, documents, books, records, files, computer
  software and data reasonably considered by the Seller to be proprietary to the
  Seller or a member of the Seller’s Group (other than *** and ***) and accepted
  as such by the Purchaser.

GAAP means generally accepted
  accounting principles and practices of each respective country; 

Government means the Government
  of Tajikistan; 

Group Loans means the
  outstanding loan capital or monies borrowed by *** or *** from the Seller or a
  member of the Seller’s Group, by way of unsecured loans, repayable on demand
  including, without limitation, any advances described in Article 7.1(b); 

Independent Accountants means
  such firm of chartered accountants as may be appointed under the clause headed
  "Independent Accountants"; 

Interest means the working
  interest of *** in and under the LICENSING AGREEMENTs; 

Interim Period means the period
  of time from the Economic Date to but excluding Completion; 

LIBOR means in relation to the
  amount and the currency of the sum in question, the rate per annum at which a
  deposit for one month would have been offered by the National Westminster Bank
  plc to prime banks in the London Interbank Market at such bank’s request at or
  about 11.00 am (London time) on the first Business Day of the period specified
  hereunder in respect of which interest is to be calculated. 

LICENSING AGREEMENTs shall have
  the meaning ascribed thereto in Recital B of this Agreement.

*** shall have the meaning
  ascribed thereto in Recital B of this Agreement. 

17 

Major Contract means a written
  contract to which *** or *** is or was a party, including without limitation,
  service agreements with a member of the Seller’s Group, in each case with a
  value in excess of USD 10,000 (or its equivalent in foreign currency);

NEXT ADVANCE shall have the
  meaning ascribed thereto in Article 2.4 of this Agreement. Operator means
  the party designated as the Operator under the Licensing Agreements; OPTION shall have the meaning ascribed thereto in Recital C of
  this Agreement.

OPTION AGREEMENT shall have the
  meaning ascribed thereto in Recital C of this Agreement. 

Parties means the Seller or the
  Purchaser. 

Purchaser’s Advance in respect of
  *** shall have the meaning ascribed thereto in Recital D of this
  Agreement.

Purchaser's Group means the
  Purchaser and its Affiliates (other than *** or ***) from time to time; 

*** shall have the meaning
  ascribed thereto in Recital A of this Agreement. 

Real Estate Properties shall
  have the meaning ascribed thereto in Article 3.1.3 of this Agreement.
  "Properties" and Property means any of them and includes every part of each of
  them; 

Seller’s Group means Seller, or
  *** and any undertaking or company other than the Companies that is, at the
  relevant time, directly or indirectly affiliated with the two first mentioned
  companies or either of them;

For the purpose of this definition a
  particular company or undertaking is: 

	 	(i) 	directly affiliated with another company or companies if
      the latter beneficially hold/holds shares carrying 50% (fifty percent) or
      more of the votes exercisable at a general meeting of shareholders (or its
      equivalent) of the particular company; and

	 	 	 
	 	(ii) 	indirectly affiliated with a company or companies (in
      this definition referred to as "the parent company or companies") if a
      series of companies can be specified, beginning with the parent company or
      companies and ending with the particular company, so related that each
      company of the series, except the parent company or companies, is directly
      affiliated with one or more companies earlier in the
      series.

Security Deposit shall have the
  meaning ascribed thereto in Recital C of this Agreement. Shares shall
  have the meaning ascribed thereto in Recital C of this Agreement; SHA shall have the meaning ascribed thereto in clause 5.4 of this Agreement; *** shall have the meaning ascribed thereto in Recital A of this Agreement; 

18 

Taxation means all forms of
  taxes, duties, imposts, octrois and levies, whether of Tajikistan, *** or
  elsewhere, including income tax (including income tax or amounts equivalent to
  or in respect of income tax required to be deducted or withheld from or
  accounted for in respect of any payment), corporation tax, advance corporation
  tax, sales tax, petroleum income tax, value added tax, specific business tax,
  royalties, house and land tax, local development tax, customs and other import
  or export duties, excise duties, stamp duty, social security or other similar
  contributions, and any interest, penalty, surcharge or fine relating thereto,
  including a payment which *** or *** is liable to make as a result of having
  claimed a credit in relation to any Taxation in excess of the amount properly
  claimable, and, in a case where Taxation for which *** or *** is liable is
  discharged by another person, the amount corresponding to that Taxation for
  which *** or *** is, after that discharge, liable; 

*** shall have the meaning
  ascribed thereto in Recital D of this Agreement;

Third Party Claim shall have the
  meaning ascribed thereto in Schedule 4, clause 2.1 of this Agreement;

USD or $ means United
  States Dollars; 

*** shall have the meaning
  ascribed thereto in Recital B of this Agreement;

Warranties means the warranties
  on the part of the Seller contained in the clause headed "The Seller's
  Warranties"; 

Warranty Claim means any claim
  by the Purchaser arising out of or in connection with this Agreement, including
  for any breach or alleged breach of any of the Warranties; and 

Where any statement in the Schedule 3
  or in the Disclosure Letter is qualified by the expression "so far as the Seller
  is aware" or "to the best of the Seller's knowledge, information and belief" or
  any similar expression, that statement shall be deemed to be made only on the
  actual knowledge of the Seller after due diligent and careful enquiry of the
  following individuals: *** 

In this Agreement any reference,
  express or implied, to an enactment (which includes any legislation in any
  jurisdiction) includes references to: 

that enactment as amended, extended or
  applied by or under any other enactment (before or after signature of this
  agreement); 

In this Agreement: 

	 	(a) 	words denoting persons shall include bodies corporate and
      unincorporated associations of persons;

	 	 	 
	 	(b) 	references to an individual/a natural person include his
      estate and personal representatives;

	 	 	 
	 	(c) 	subject to the Article headed "Assignments", references
      to a party are to a party to this Agreement and include references to the
      successors or assigns (immediate or otherwise) of that party;
      and

	 	 	 
	 	(d) 	references to time are to London
      time.

19 

SIGNATORIES 

	Seller 	  	  
	 	 	 
	 	 	 
	*** 	*** 	  
	  	  	....................................... 
	  	  	  
	DWM PETROLEUM AG 	  	  
	 	 	 
	 	 	 
	Signed by 	) 	  
	for 	) 	.../s/ Dr. Werner Ladwein..................
  

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND
REPLACED WITH “***”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934. 

ANNEXURE 1 – OPTION AGREEMENT 

1 

Effective May 5, 2012 

 

 

OPTION AGREEMENT 

BETWEEN 

*** 

and 

DWM PETROLEUM AG

 

 

 

Relating to the Option for the sale and purchase
of
80% of the issued share capital
of a Company that would
hold 100% shares in *** 

 

 

 

 

 

2 

THIS OPTION AGREEMENT(“Option
Agreement”) is made effective as of May 5, 2012 

BETWEEN: 

	(1) 	
      *** a company organised under the laws of ***
      whose registered office is at ***; and

	 	 
	(2) 	
      DWM PETROLEUM AG, a company registered in
      Switzerland, having its registered office at Bahnofstrasse 9, Baar,
      Switzerland (referred to herein as the “DWM”).

	 	 
		
      BACKGROUND:

	A. 	
      *** owns 100% of the issued share capital of ***, a
      company registered in *** (hereinafter “***”).

	 	 
	B. 	
      *** is the legal and beneficial owner of ***% shares in
      ***, a joint venture with limited liability incorporated under the laws of
      Tajikistan (hereinafter “***”), and the remaining ***% shares in *** are
      held by *** company of Tajikistan (hereinafter “***”) .

	 	 
	C. 	
      A Tajik joint venture with limited liability *** known as
      *** which is *** (hereinafter “***”), is legal owner of rights in ***
      licences for the *** identified in the Schedule A hereof (hereinafter
      “Licenses”), and, Seller, *** and *** are taking necessary steps to
      ***.

	 	 
	D. 	
      DWM desires to purchase 80% shares in a Swiss company
      that owns 100% shares in ***, and has therefore requested *** to purchase
      remaining shares of *** in such a manner that *** is owned 100% by a new
      company.

	 	 
	E. 	
      *** is willing to incorporate a new company in
      Switzerland (hereinafter “Newco”) and take actions necessary for
      transferring 100% shares of *** in NewCo.

	 	 
	F. 	
      *** is also willing to give DWM an option to purchase 80%
      shares in NewCo which would own 100% shares in ***.

	 	 
	G. 	
      *** is also willing to allow DWM to conduct legal due
      diligence and audit of *** and ***, respectively, to facilitate DWM’s
      decision regarding exercise of such option.

	 	 
		
      NOW THEREFORE, *** AND DWM AGREE as
  follows:

	 	1. 	
      *** and DWM shall take following actions:

	 	 	 	 	 
	 		a. 	
      *** shall incorporate NewCo in Switzerland.

	 	 	 	 	 
	 		b. 	
      DWM shall pay to ***, a refundable security deposit of
      USD 10 million (“Security Deposit”), via wire transfer in ***’s bank
      account, in three (3) instalments on or before following dates, for an
      option to purchase 80% shares in Newco (“Option”):

	 	 	 	 	 
	 			i. 	
      US$ 5 million on or before May 31, 2012

	 	 	 	 	 
	 			ii. 	
      US$ 2 million on or before July 15, 2012.

	 	 	 	 	 
	 			iii. 	
      US$ 3 million on or before August 24,
  2012

3 

	 	c. 	
      DWM shall engage a reputable local law firm to conduct
      legal due diligence (hereinafter “Due Diligence”) regarding *** and
      ***.

	 	 	 
	 	d. 	
      Once Due Diligence is completed, DWM shall engage
      reputable international accounting firm to conduct an independent audit
      (hereinafter “Audit”) of all books and accounts of *** and *** to
      follow-up on the concerns raised in the Due Diligence.

	 	 	 
	 	e. 	
      DWM may exercise the Option, within one (1) month of the
      completion of Audit.

	 	 	 
	 	f. 	
      If DWM exercises the Option, *** and DWM shall negotiate
      a Share Purchase Agreement (hereinafter “SPA”) pursuant to which *** shall
      sell and DWM shall purchase 80% shares in NewCo, for a purchase price to
      be agreed between *** and DWM based on the findings of the Audit
      (hereinafter “Purchase Price”). Once the SPA is signed, Security Deposit
      shall be construed as the first payment made under the SPA, and the
      remaining payment shall be due within thirty (30) days
  thereafter.

	 	 	 
	 	g. 	
      In case, DWM does not exercise the Option following
      completion of the Audit, DWM shall request *** in writing within one (1)
      month of the completion of the Audit, to return Security Deposit to DWM,
      and *** shall refund Security Deposit via wire transfer in DWM’s bank
      account on or before December 31, 2012.

	 	2. 	
      Once SPA is signed, in accordance with the SPA, *** and
      DWM shall take following actions:

	 	 	 	 	 
	 		a. 	
      *** shall seek requisite approvals of the Government for
      following actions:

	 	 	 	 	 
	 			i. 	
      To transfer EPA’s entire shares in *** (i.e. ***%), to
      NewCo.

	 	 	 	 	 
	 			ii. 	
      To purchase remaining ***% shares in *** from *** and
      thereafter transfer such shares to NewCo.

	 	b. 	
      *** shall notify DWM as soon as the requisite approvals
      of the Government stipulated in para 2 a i are obtained.

	 	 	 	 
	 	c. 	
      *** shall transfer ***’s entire shares in *** (i.e.
      ***%), to NewCo.

	 	 	 	 
	 	d. 	
      Within ten (10) days of ***’s transfer of ***’s entire
      shares in *** (i.e. ***%), to NewCo, *** and DWM shall take following
      simultaneous actions:

	 	 	 	 
	 		i. 	
      DWM shall make a payment of Purchase Price minus Security
      Deposit minus US$ 1 million

	 	 	 	 
	 		ii. 	
      *** shall place 80% shares of NewCo in escrow with an
      escrow agent to be mutually agreed.

	 	 	 	 
	 	e. 	
      *** shall purchase remaining ***% shares in *** from ***
      and thereafter transfer such shares to NewCo.

	 	 	 	 
	 	f. 	
      *** and DWM shall close the transaction envisaged under
      the SPA, which shall inter alia include following simultaneous
    actions:

4 

	 	i. 	
      payment by DWM to *** of Purchase Price minus payments
      already made i.e. US$ 1 million, and

	 	 	 
	 	ii. 	
      transfer by the escrow agent to DWM of 80% of shares in
      NewCo.

	 	3. 	
      Unless required by applicable laws or securities
      regulations, neither *** nor DWM shall make the existence or contents of
      this Option Agreement public.

	 	 	 
	 	4. 	
      This Option Agreement shall be governed by the laws of
      England & Wales, and any dispute if not resolved amicably shall be
      resolved via international arbitration under the arbitration rules of the
      International Chamber of Commerce. Venue of arbitration shall be
    ***.

IN WITNESS WHEREOF this Option Agreement has been signed by the
parties (or their duly authorised representatives) effective as of May 5, 2012

 

	*** 	DWM PETROLEUM AG 
	  	  
	  	  
	Name: 	Name: Dr Werner Ladwein 
	Title: 	Title: President 

5 

SCHEDULE A 

*** owns 100% interests in *** onshore Tajikistan and related
assets, including following ***: 

-                            
*** 

6 

CERTAIN CONFIDENTIAL PORTIONS OF THIS EXHIBIT WERE OMITTED AND
REPLACED WITH “***”. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED
SEPARATELY WITH THE SECRETARY OF THE SECURITIES AND EXCHANGE COMMISSION PURSUANT
TO AN APPLICATION REQUESTING CONFIDENTIAL TREATMENT UNDER RULE 24B-2 OF THE
SECURITIES EXCHANGE ACT OF 1934. 

ANNEXURE 3 – PURCHASER’S NOTICE FOR EXERCISE OF OPTION

1

(printed on DWM letterhead) 

	*** 	  
	 	 
	*** 	  
	 	 
	*** 	Baar, October 23, 2012 
	 	 
	*** 	  

	Attention: 	***, General Manager 
	  	  
	
      Subject: 
	
      Notice for exercise of Option under the Option
      Agreement effective May 5, 2012 relating to the option for the sale
      and purchase of 80% of the issued share capital of a Swiss company
      that would hold 100% shares in ***, a Tajik company (hereinafter
      “Option Agreement”). 

Dear ***, 

Pursuant to Article 1 e of the Option Agreement, DWM Petroleum
AG (“DWM”) is pleased to exercise the Option (as defined in the Option
Agreement), subject to *** taking certain actions as described in detail in
Schedule A hereof (hereinafter “Actions”), to *** (as defined in the Option
Agreement) and related agreements in order. 

Kindly let us know if you have any questions regarding the
above notice. 

Sincerely yours, 

Dr. Werner Ladwein 
President 

2

SCHEDULE A 

Actions to be taken by *** to re-issue all documents related to
*** under the name of existing *** from the name of *** with the same name) 

Now that all *** have been re-issued under the name of ***
(“***”), *** must also ensure that all documents related to the *** are
re-issued under the name of ***. In particular following documents have to be
re-issued under the name of ***:

	1) 	
      ***

	 	 
	2) 	
      ***

	 	 
	3) 	
      ***; and

	 	 
	4) 	
      ***

These requirements are also stipulated in *** (Section “***”).

3Exhibit 10.1

 

Execution Version

 

 

AMENDMENT NO. 2 TO MASTER REPURCHASE AND SECURITIES CONTRACT

 

AMENDMENT NO. 2 TO MASTER REPURCHASE AND SECURITIES CONTRACT, dated as of June 27, 2013 (this “Amendment”), between ACRC LENDER W LLC, a Delaware limited liability company (“Seller”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (“Buyer”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to them in the Repurchase Agreement (as defined below).

 

RECITALS

 

WHEREAS, Seller and Buyer are parties to that certain Master Repurchase and Securities Contract, dated as of December 14, 2011 (as amended by Buyer, Seller and Guarantor pursuant to Amendment No. 1 to Master Repurchase and Securities Contract dated as of May 22, 2012 (“Amendment No. 1”), and as amended, restated, supplemented or otherwise modified and in effect from time to time, the “Repurchase Agreement”); and

 

WHEREAS, Seller and Buyer have agreed to further amend certain provisions of the Repurchase Agreement in the manner set forth herein.

 

Therefore, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Seller and Buyer each hereby agree as follows:

 

SECTION 1.     Amendments to Repurchase Agreement.

 

(a)        The defined terms “Credit Event”, “Defaulted Asset”, “EBITDA”, “Interest Expense”, “Maximum Amount”, “Purchase Price”, “Repurchase Price”, “Senior Interest” and “Sub-Limit”, as set forth in Article 2 of the Repurchase Agreement, are hereby amended and restated in their entirety to read as follows:

 

“Credit Event”:  The determination by Buyer, in its commercially reasonable judgment, that any of the following events or any similar event, occurrence or condition has occurred: (i) an Insolvency Event with respect to any Underlying Obligor, (ii) any monetary or material non-monetary event of default under the terms of any Purchased Asset after giving effect to any applicable notice, grace or cure periods, (iii) failure of a Purchased Asset to qualify as an Eligible Asset, (iv) the deterioration in value of any Mortgaged Property relating to any Purchased Asset (other than due to fluctuations in current interest rates and spreads) such that the PPV Test with respect to any Purchased Asset is violated, (v) any drop in the net operating income or cash flow of any Purchased Asset or the Mortgaged Property related thereto such that (A) the Debt Yield Test is violated and (B) a Margin Deficit with respect to any Purchased Asset exists in an amount greater than $500,000, (vi) the loss of any security interest (or the priority thereof) under this Agreement or any documents executed in connection with this Agreement, or any document executed in connection with any Underlying Mortgage Loan, (vii) any Transaction fails to qualify for safe harbor treatment

 

 

under the Bankruptcy Code, as described in Article 14 of this Agreement, (viii) Seller fails to deliver the Mortgage Loan File to the Custodian within the applicable time periods provided in the Custodial Agreement, subject to any applicable cure periods set forth therein, (ix) any material breach of a representation or warranty with respect to any Purchased Asset occurs and is not cured within the applicable cure periods set forth in the documents executed in connection with the applicable Underlying Mortgaged Property (x) any statement, affirmation or certification made or information, document, agreement, report or notice delivered by Seller to Buyer is untrue in any material respect, (xi) the Minimum Portfolio Debt Yield Test is violated, and (xii) Buyer determines that a Material Adverse Effect has occurred or that such Purchased Asset is otherwise unlikely to be collectible on a timely basis.

 

“Defaulted Asset”:  Any Asset or Purchased Asset, as applicable, (a) that is thirty (30) or more days (or, in the case of payments due at maturity, one (1) day) delinquent in the payment of principal, interest, fees, distributions or any other amounts payable under the related Mortgage Loan Documents, (b) for which there is a Representation Breach with respect to such Asset or Purchased Asset, other than an Approved Representation Exception, (c) for which there is a monetary default or a material non–monetary default under the related Mortgage Loan Documents beyond any applicable notice or cure period, (d) as to which an Insolvency Event has occurred with respect to the related Underlying Obligor, or (e) for which Seller or Interim Servicer has received notice of the foreclosure or proposed foreclosure of any Lien on the related Underlying Mortgaged Property.

 

“EBITDA”:  With respect to any Person and for any Test Period, an amount equal to the sum of (a) Net Income (or loss) of such Person (prior to any impact from minority or non-controlling interests or joint venture net income and before deduction of any dividends on preferred stock of such Person), plus the following (but only to the extent actually included in determination of such Net Income (or loss)): (i) depreciation and amortization expense (other than those related to capital expenditures that have not been included in the calculation of Fixed Charges as defined in the Guarantee Agreement), (ii) Interest Expense, (iii) income tax expense, (iv) extraordinary or non-recurring gains, losses and expenses including but not limited to transaction expenses relating to business combinations, other acquisitions and unconsummated transactions, (v) unrealized loan loss reserves,  impairments and other similar charges including but not limited to reserves for loss sharing arrangement associated with mortgage servicing rights, (vi) realized losses on loans and loss sharing arrangements associated with mortgage servicing rights and (vii) unrealized gains, losses and expenses associated with (A) derivative liabilities including but not limited to convertible note issuances and (B) mortgage servicing rights (other than the initial revenue recognition of recording an asset), plus (b) such Person’s proportionate share of Net Income (prior to any impact from minority or non-controlling interests or joint venture net income and before deduction of any dividends on preferred stock of such Person) of the joint venture investments and unconsolidated Affiliates of such Person, all with respect to such period.

 

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“Interest Expense”:  With respect to any Person and for any Test Period, the amount of total interest expense incurred by such Person, including capitalized or accruing interest (but excluding interest funded under a construction loan, the amortization of financing costs, and the payment of origination fees), plus such Person’s proportionate share of interest expense from the joint venture investments and unconsolidated Affiliates of such Person, all with respect to such period.

 

“Maximum Amount”:  $225,000,000, which Maximum Amount shall not be increased by any Future Funding Transaction or reduced upon the repurchase of any Purchased Assets; provided, that on and after the Facility Termination Date, the Maximum Amount on any date shall be the aggregate Purchase Price outstanding for all Transactions as of such date, as such amount declines over the term hereof as Purchased Assets are repurchased and Margin Deficits are satisfied.

 

“Purchase Price”:  For any Purchased Asset, (a) as of the Purchase Date for such Purchased Asset, an amount equal to the product of the Market Value of such Purchased Asset, times the Applicable Percentage for such Purchased Asset, and (b) as of any other date, the amount described in the preceding clause (a), (i) increased by any Future Funding Amounts disbursed by Buyer to Seller or the related borrower with respect to such Purchased Asset and, (ii) reduced by (x) any amount of Margin Deficit transferred by Seller to Buyer pursuant to Section 4.01 and applied to the Purchase Price of such Purchased Asset, (y) any Principal Payments remitted to the Waterfall Account and which were applied to the Purchase Price of such Purchased Asset by Buyer pursuant to clause fifth of Section 5.02, and (z) any payments made by Seller in reduction of the outstanding Purchase Price.

 

“Repurchase Price”:  For any Purchased Asset as of any date, an amount equal to the sum of (a) the outstanding Purchase Price as of such date, (b) the accrued and unpaid Price Differential for such Purchased Asset as of such date (as increased by any Future Funding Amounts and any other additional funds advanced in connection with such Purchased Asset), (c) all other amounts due and payable as of such date by Seller to Buyer under this Agreement or any Repurchase Document, (d) any accrued and unpaid fees and expenses and indemnity amounts and any other amounts owed by Seller or Guarantor to Buyer or any of its Affiliates under this Agreement or any Repurchase Document and (e) the Exit Fee, if any, applicable to such Purchased Asset on any Early Repurchase Date.

 

“Senior Interest”:  Either (a) a senior or pari passu participation interest in a Whole Loan, or (b) a senior or pari-passu “A-Note” in an “A/B structure” of a Whole Loan.

 

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“Sub-Limit”:  The composition of Purchased Assets transferred to Buyer shall at all times meet the following sublimit caps, and no Market Value shall be ascribed to any Purchased Assets:

 

(a)        to the extent that the Market Value ascribed to non-controlling Senior Interests with outstanding Future Funding Amounts would exceed twenty-five percent (25%) of the Maximum Amount;

 

(b)        to the extent that the Market Value ascribed to any one Purchased Asset would exceed twenty-five percent (25%) of the Maximum Amount; and

 

(c)        to the extent that the Market Value ascribed to Purchased Assets, the Type of which consists of hotels, (as determined by Buyer), would exceed fifteen percent (15%) of the Maximum Amount.

 

(b)       The following, new defined terms “Future Funding Amount”, Future Funding Confirmation”, “Future Funding Date”, “Future Funding Request Package”, “Future Funding Transaction”, “Minimum Portfolio Debt Yield Test” and “Multi-Family Asset” are hereby added to Article 2 of the Repurchase Agreement in correct alphabetical order:

 

“Future Funding Amount”:  With respect to any Whole Loan or Senior Interest, the amount of additional funding obligations that were expressly identified to Buyer in connection with the initial Transaction.

 

“Future Funding Confirmation”:  Defined in Section 3.11(a)(i).

 

“Future Funding Date”:  With respect to any Whole Loan or Senior Interest, the date on which Buyer advances any portion of the Future Funding Amount related to such Whole Loan or Senior Interest, as applicable.

 

“Future Funding Request Package”:  With respect to one or more Future Funding Transactions, the following, to the extent applicable and available, unless any such items were previously delivered to Buyer and have not been modified since the date of each such delivery:  (a) the executed request for advance (which shall include the applicable Seller’s approval of such future funding); (b) the executed borrower’s affidavit; (c) the escrow agreement, if funding through escrow; (d) copies of all relevant trade contracts; (e) the title policy endorsement for the advance; (f) copies of any tenant leases; (g) copies of any service contracts; (h) updated financial statements, operating statements and rent rolls; (i) evidence of required insurance; (j) updates to the engineering report, if required; and (k) copies of any additional documentation as required in connection therewith pursuant to the related Underlying Loan Documents.

 

“Future Funding Transaction”:  An additional Transaction requested with respect to any Whole Loan or Senior Interest to provide for the advance of additional funds that were expressly identified to Buyer in connection with the

 

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initial Transaction entered into in respect of such Whole Loan or Senior Interest, as applicable.

 

“Minimum Portfolio Debt Yield Test”:  The meaning set forth in the Fee Letter, which definition is incorporated herein by reference.

 

“Multi-Family Asset”:  Any Purchased Asset for which the majority or all of the Underlying Mortgaged Property consists of multiple separate housing units for residential (i.e. non-commercial) inhabitants, which may be contained either in one building or in several buildings within a single complex.

 

(c)        The following new sentence is hereby added to the end of the defined term “Eligible Asset”, as set forth in Article 2 of the Repurchase Agreement:

 

For the avoidance of doubt, Buyer’s agreement to accept an Asset with a future funding obligation shall be deemed to be a permanent waiver of clause (d) of the definition of Eligible Asset with respect to such Asset, provided, however that such waiver shall not be deemed a waiver of such requirement with respect to any other Asset or Purchased Asset.

 

(d)       The reference to “Schedule 1” as set forth in Section 3.07(b) of the Repurchase Agreement, is hereby revised to read “Schedule 3”.

 

(e)        The following, new Section 3.11 is hereby added to the Repurchase Agreement in correct numerical order:

 

SECTION 3.11           Future Funding Transactions.  Buyer’s agreement to enter into any Future Funding Transaction is subject to the satisfaction of the following conditions precedent, both immediately prior to entering into such Future Funding Transaction and also after giving effect to the consummation thereof:

 

(i)    Seller shall give Buyer written notice of each Future Funding Transaction, together with a signed, written confirmation in the form of Exhibit J attached hereto prior to each Future Funding Transaction (a “Future Funding Confirmation”), signed by a Responsible Officer of Seller.  Each Future Funding Confirmation shall identify the related Whole Loan and/or Senior Interest, shall identify Buyer and Seller and shall be executed by both Buyer and Seller; provided, however, that Buyer shall not be liable to Seller if it inadvertently acts on a Future Funding Confirmation that has not been signed by a Responsible Officer of Seller.  Each Future Funding Confirmation, together with this Agreement, shall be conclusive evidence of the terms of the Future Funding Transaction covered thereby, and shall be construed to be cumulative to the extent possible.  If terms in a Future Funding Confirmation are inconsistent with terms in this Agreement with respect to a particular Future Funding Transaction, other than with respect to the Applicable Percentage and

 

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Maximum Applicable Percentage set forth in such Future Funding Confirmation, this Agreement shall prevail.

 

(ii)   No less than seven (7) Business Days prior to the proposed Future Funding Date, Seller shall deliver to Buyer a Future Funding Request Package.  Buyer shall have the right to conduct an additional due diligence investigation of the Future Funding Request Package and/or the related Whole Loan and/or Senior Interest as Buyer determines.  Prior to the approval of each proposed Future Funding Transaction by Buyer, Buyer shall have determined, in its sole and absolute discretion, that all of the applicable conditions precedent for a Transaction, as described in Section 6.02(b), (e), (f) and (h) have been met by Seller and that the consummation of the related Future Funding Transaction would not otherwise cause Seller to breach the Minimum Portfolio Debt Yield Test.  So long as all such conditions have been satisfied, no Default or Event of Default then-currently exist and Buyer has determined, in its sole and absolute discretion, that, if Buyer has not purchased from Seller a complete ownership interest in the entire related Whole Loan, that all of the terms and conditions relating to the splitting of such Whole Loan into multiple interests are satisfactory to Buyer in all respects, then Buyer shall be required to approve the related Future Funding Transaction on a timely basis.

 

(iii)  Upon the approval by Buyer of a particular Future Funding Transaction, Buyer shall deliver to Seller a signed copy of the related Future Funding Confirmation described in clause (i) above, on or before the scheduled date of the underlying proposed Future Funding Transaction.  On the Future Funding Date for the Future Funding Transaction, which shall occur no later than three (3) Business Days after the final approval of the Future Funding Transaction by Buyer, the Future Funding Amount shall be transferred by Buyer to Seller or, at Buyer’s direction and only after the delivery of prior notice thereof to Seller, to the related Underlying Obligor.

 

(f)        Section 7.16 of the Repurchase Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 7.16.   Chief Executive Office; Jurisdiction of Organization.  On the Effective Date, Seller’s chief executive office, is, and has been, located at One North Wacker Drive, 48th Floor, Chicago, Illinois 60606.  On the Effective Date, Seller’s jurisdiction of organization is Delaware.  Seller shall provide Buyer with thirty (30) days advance notice of any change in Seller’s principal office or place of business or jurisdiction.  Seller has no trade name.  During the preceding five (5) years, Seller has not been known by or done business under any other name, corporate or fictitious, and has not filed or had filed against it any bankruptcy receivership or similar petitions nor has it made any assignments for the benefit of creditors.

 

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(g)        Section 10.01(a) of the Repurchase Agreement is hereby amended and restated in its entirety to read as follows:

 

(a)        Seller fails to make a payment of (i) Margin Deficit or Repurchase Price (other than Price Differential) when due, whether by acceleration or otherwise (including, if applicable, any Future Funding Amounts related to a Future Funding Transaction), (ii) Price Differential within one (1) Business Day of when due, or (iii) any other amount within two (2) Business Days of when due unless Seller did not have knowledge of such required payment, in which case within two (2) Business Days after receipt of notice that such payment is due and owing, in each case under the Repurchase Documents;

 

(h)       The attached Exhibit J is hereby added to the Repurchase Agreement.

 

(i)         Item number 1 on Schedule 1(b) to the Repurchase Agreement is hereby amended and restated in its entirety to read as follows:

 

1.         The Senior Interest is either (a) a controlling senior or controlling or non-controlling pari-passu participation interest in a Whole Loan or (b) a controlling senior or controlling or non-controlling pari-passu “A-Note” in an “A/B structure” of a Whole Loan.

 

SECTION 2.     Conditions Precedent.  This Amendment and its provisions shall become effective on the first date on which this Amendment is executed and delivered by a duly authorized officer of each of Seller and Buyer, (the “Amendment Effective Date”), so long as, on or before the Amendment Effective Date, Buyer has received legal opinions issued by Latham & Watkins LLP and Venable LLP, which are reasonably acceptable to Buyer and its counsel.

 

SECTION 3.     Representations, Warranties and Covenants.  Seller hereby represents and warrants to Buyer, as of the date hereof and as of the Amendment Effective Date, that (i) Seller is in compliance in all material respects with all of the terms and provisions set forth in each Repurchase Document to which it is a party on its part to be observed or performed, and (ii) no Default or Event of Default has occurred or is continuing.  Seller hereby confirms and reaffirms its representations, warranties and covenants contained in the Repurchase Agreement, except that Seller has changed its location in the past twelve (12) months.

 

SECTION 4.     Acknowledgement.  Seller hereby acknowledges that Buyer is in compliance with its undertakings and obligations under the Repurchase Agreement and the other Repurchase Documents.

 

SECTION 5.     Limited Effect.  Except as expressly amended and modified by this Amendment, the Amendment No. 2 to the Guarantee Agreement and the Amendment No. 1 to the Fee Letter, the Repurchase Agreement, the Fee Letter, and each of the other Repurchase Documents shall continue to be, and shall remain, in full force and effect in accordance with their respective terms; provided, however, that upon the Amendment Effective Date, (w) each reference therein and herein to the “Repurchase Documents” shall be deemed to include, in any event, this Amendment, (x) each reference to the “Repurchase Agreement” in any of the

 

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Repurchase Documents shall be deemed to be a reference to the Repurchase Agreement as amended hereby, (y) each reference to the “Fee Letter” in any of the Repurchase Documents shall be deemed to be a reference to the Fee Letter as amended by Amendment No. 1 to the Fee Letter, and (z) each reference in the Repurchase Agreement to “this Agreement”, this “Repurchase Agreement”, “hereof”, “herein” or words of similar effect in referring to the Repurchase Agreement shall be deemed to be references to the Repurchase Agreement as amended by this Amendment.

 

SECTION 6.     Counterparts.  This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment in Portable Document Format (PDF) or by facsimile transmission shall be effective as delivery of a manually executed original counterpart thereof.

 

SECTION 7.     Expenses.  Seller agrees to pay and reimburse Buyer for all out-of-pocket costs and expenses incurred by Buyer in connection with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and disbursements of Cadwalader, Wickersham & Taft LLP, counsel to Buyer.

 

SECTION 8.     GOVERNING LAW.

 

THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO OR IN CONNECTION WITH THIS AMENDMENT, THE RELATIONSHIP OF THE PARTIES, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES WILL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

 

[SIGNATURES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

 

 

	
 
    	
SELLER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ACRC LENDER W LLC,   a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Timothy B. Smith
    	
 
    
	
 
    	
 
    	
Name: Timothy B. Smith
    
	
 
    	
 
    	
Title: Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BUYER
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WELLS FARGO BANK, N.A., a   national banking association
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Nelson
    	
 
    
	
 
    	
 
    	
Name: John Nelson
    
	
 
    	
 
    	
Title: Managing Director

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