Document:

Registration Rights Agreement

 Exhibit 4.1 
 550,000 Shares 
 TRANSMERIDIAN EXPLORATION INCORPORATED 
 20% Junior Redeemable Convertible Preferred Stock 
 REGISTRATION RIGHTS AGREEMENT 
 June 26, 2007 
  

			
	 Capital Ventures International
	  	Linden Capital L.P.
	 c/o Heights Capital Management, Inc.
	  	c/o Linden Advisors
	 101 California Street, Suite 3250
	  	450 Park Avenue
	 San Francisco, CA 94111
	  	New York, NY 10022
		
	 Investcorp Silverback Arbitrage Master Fund Limited
	  	Silver Oak Capital, L.L.C.
	 c/o Silverback Asset Management, LLC
	  	245 Park Avenue, 26th Floor
	 1414 Raleigh Road, Suite 250
	  	New York, NY 10167
	 Chapel Hill, NC 27517
	  	
		
	 Kenmont Special Opportunities Master Fund, L.P.
	  	Whitebox Convertible Arbitrage Partners, LP
	 Man Mac Miesque 10B Ltd.
	  	Whitebox Hedged High Yield Partners, LP
	 c/o Kenmont Investments Management, L.P.
	  	Pandora Select Partners, LP
	 711 Louisiana, Suite 1750
	  	Whitebox Intermarket Partners, LP
	 Houston, TX 77002
	  	GPC LIX, LLC
		  	Guggenheim Portfolio Co. XXXI, LLC
		  	3033 Excelsior Boulevard, Suite 300
		  	Minneapolis, MN 55416
		
	 Fursa Master Global Event Driven Fund, LP
	  	RHP Master Fund, Ltd.
	 444 Merrick Road, Suite 104
	  	c/o Rock Hill Investment Management, L.P.
	 Lynbrook, NY 11563
	  	Three Bala Plaza East, Suite 585
		  	Bala Cynwyd, PA 19004
		
	 Basso Fund Ltd.
	  	Basso Holdings Ltd.
	 1266 East Main Street
	  	Basso Multi-Strategy Holding Fund Ltd.
	 Stamford, CT 06902
	  	c/o Basso Capital Management L.P.
		  	1266 East Main Street, 4th Floor
		  	Stamford, CT 06902
		
	 Greenwich Investment Partners
	  	Dr. Wolfgang Rupf
	 546 Fifth Avenue, 14th Floor
	  	AKV Altkönig Verwaltungs GmbH
	 New York, NY 10036
	  	Altkönigstr. 41
		  	61462 Königstein
		  	Germany

 Ladies and Gentlemen: 
 Transmeridian Exploration Incorporated, a Delaware corporation (the “Company”), proposes to issue and sell to the various investors set forth on the signature pages hereto (together, the
“Initial Purchasers”), upon the terms and conditions set forth in the Regulation D Purchase Agreement, dated as of the date hereof, by and among the Company and the Initial Purchasers (the “Purchase Agreement”),
550,000 shares of the Company’s 20% Junior Redeemable Convertible Preferred Stock, par value $0.0006 per share (liquidation preference $100 per share) (such shares, collectively with the shares of the 20% Junior Redeemable Convertible Preferred
Stock which may be issued pursuant to the exchange rights provisions set forth in the Certificate of Designations (as defined below) and inclusive of the 100,000 shares of the 20% Junior Redeemable Convertible Preferred Stock issued as of
June 18, 2007 pursuant to 

 
the Amended and Restated Commitment Letter, dated as of June 18, 2007 (the “Commitment Letter”), by and among the Company and the
Initial Purchasers party thereto, the “Convertible Preferred Stock”). The Convertible Preferred Stock will be convertible into shares of Common Stock, par value $0.0006 per share, of the Company (the “Common Stock”)
at the conversion price set forth, and subject to adjustment in accordance with, the Certificate of Designations, dated June 18, 2007, governing the Convertible Preferred Stock (as amended or modified from time to time, the “Certificate
of Designations”). The Convertible Preferred Stock and the Common Stock issuable upon conversion of any shares of the Convertible Preferred Stock and any shares of Convertible Preferred Stock or Common Stock issued in lieu of cash dividends
on the Convertible Preferred Stock are collectively referred to as “Securities” and each is referred to singularly as a “Security.” As an inducement to the Initial Purchasers to enter into the Purchase Agreement and
the Commitment Letter, the Company hereby agrees with the Initial Purchasers, for the benefit of the Initial Purchasers and the holders of the Securities (the “Holders”), as follows: 
 1. Shelf Registration. So long as any Transfer Restricted Security (as defined below) exists, the Company shall take the following actions:

 (a) The Company shall, within 30 days after the date of the Commitment Letter, file with the Securities and Exchange
Commission (the “Commission”), and thereafter use its reasonable best efforts to cause to be declared effective within 120 days after the date of the Commitment Letter, a registration statement (together with all documents
incorporated by reference or deemed incorporated by reference therein, the “Shelf Registration Statement”) on an appropriate form under the Securities Act of 1933 (as amended, the “Securities Act”) relating to the
offer and sale of the Transfer Restricted Securities by the Holders thereof from time to time in accordance with the methods of distribution designated by the Holders and set forth in the Shelf Registration Statement and Rule 415 under the
Securities Act (hereinafter, the “Shelf Registration”); provided, however, that no Holder (other than the Initial Purchasers) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless
such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to such Holder. If the Company shall file a post-effective amendment to the Shelf Registration Statement, it shall use its reasonable best efforts to cause
such post-effective amendment to be declared effective as promptly as practicable, but in any event within 30 days after the date such post-effective amendment is filed. “Transfer Restricted Securities” means each Security until
(i) the date on which such Security has been effectively registered under the Securities Act and disposed of pursuant to the Shelf Registration Statement or (ii) the date on which such Security is distributed to the public pursuant to Rule
144 under the Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act. 
 (b) The Company shall use its
reasonable best efforts to keep the Shelf Registration Statement continuously effective, in order to permit the prospectus included therein to be lawfully delivered by the Holders of the relevant Securities, until such time as all of the Securities
covered by the Shelf Registration Statement (i) have been sold in the manner provided for therein and pursuant thereto, (ii) are eligible to be sold under Rule 144(k) under the Securities Act (or any successor rule thereof), assuming
for this purpose that the Holders thereof are not affiliates of the Company or (iii) cease to be outstanding (in any such case, such period being called the “Shelf Registration Period”). The Company shall be deemed not to have
used its reasonable best efforts to keep the Shelf Registration Statement effective during the Shelf Registration Period if it voluntarily takes any action that would result in Holders of Securities covered thereby not being able to offer and sell
such Securities during that period, unless such action is required by applicable law. 
 (c) Notwithstanding any other
provisions of this Agreement to the contrary, the Company shall cause the Shelf Registration Statement and the related prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement, amendment or
supplement, (i) to comply in all material respects with the applicable requirements of the Securities Act and the rules and regulations of the Commission and (ii) not to contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, the Company shall have no such obligations or liabilities
with respect to any written information 

  

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pertaining to any Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein. 
 2. Registration Procedures. In connection with the Shelf Registration contemplated by Section 1 hereof, the following provisions shall apply
so long as any Transfer Restricted Security exists: 
 (a) The Company shall (i), if requested by any of the Initial
Purchasers, furnish, without charge, to the requesting Initial Purchaser, prior to the filing thereof with the Commission, a copy of the Shelf Registration Statement and each amendment thereof and each supplement, if any, to the prospectus included
therein and, in the event that any of the Initial Purchasers (with respect to any portion of an unsold allotment from the original offering) is participating in the Shelf Registration Statement, the Company shall use its best efforts to reflect in
each such document, when so filed with the Commission, such comments as the participating Initial Purchaser reasonably may propose, (ii) include in each such document the names of the Holders who have delivered written notice, and a duly
completed selling stockholder questionnaire in the form attached as Annex A to the Offering Memorandum (a “Questionnaire”) to the Company at least five business days prior to the date that the Shelf Registration Statement is first
declared effective, that they propose to include Transfer Restricted Securities in the Shelf Registration Statement as selling securityholders and (iii) file pursuant to Rule 424(b) under the Securities Act a supplement to the prospectus
contained in the Shelf Registration Statement or, if required, file a post-effective amendment to the Shelf Registration Statement, in each case, to cover new Holders of Securities or the additional Securities acquired by existing Holders upon at
least seven business days prior written notice by such new Holder or existing Holder to such effect and the delivery by such new Holder or existing Holder of duly completed Questionnaires. 
 (b) The Company shall give written notice to the Initial Purchasers and, through the Company’s transfer agent and registrar for the
Convertible Preferred Stock and Common Stock, to the Holders of the Securities and the Holders of Transfer Restricted Securities included within the coverage of the Shelf Registration Statement (which notice pursuant to clauses (ii)-(v) hereof
shall be accompanied by an instruction to suspend the use of the prospectus until the requisite changes have been made): 
 (i) when the Shelf Registration Statement or any amendment thereto has been filed with the Commission and when the Shelf Registration Statement or any post-effective amendment thereto has become effective; 
 (ii) of any request by the Commission for amendments or supplements to the Shelf Registration Statement or the prospectus included therein
or for additional information; 
 (iii) of the issuance by the Commission of any stop order suspending the effectiveness of
the Shelf Registration Statement or the initiation of any proceedings for that purpose; 
 (iv) of the receipt by the Company
or its legal counsel of any notification with respect to the suspension of the qualification of the Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and 
 (v) of the happening of any event that requires the Company to make changes in the Shelf Registration Statement or the prospectus in order
that the Shelf Registration Statement or the prospectus do not contain an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. 
 (c) The Company shall make every reasonable effort to obtain the withdrawal at
the earliest possible time, of any order suspending the effectiveness of the Shelf Registration Statement. 
 (d) The Company
shall furnish to each Holder of Transfer Restricted Securities included within the coverage of the Shelf Registration Statement, without charge, if the Holder so requests in writing, at least one copy of the Shelf Registration Statement and any
post-effective amendment thereto, 

  

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including, but only if expressly requested by such Holder, financial statements and schedules and all exhibits thereto (including those, if any, incorporated
by reference). 
 (e) The Company shall, during the Shelf Registration Period, deliver to each Holder of Transfer Restricted
Securities included within the coverage of the Shelf Registration Statement, without charge, as many copies of the prospectus (including each preliminary prospectus, if any) included in the Shelf Registration Statement and any amendment or
supplement thereto as such person may reasonably request. The Company consents, subject to the provisions of this Agreement, to the use of the prospectus or any amendment or supplement thereto by each of the selling Holders in connection with the
offering and sale of the Transfer Restricted Securities covered by the prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 
 (f) Prior to any public offering of the Securities pursuant to the Shelf Registration Statement, the Company shall register, or qualify or
cooperate with the Holders of the Transfer Restricted Securities included therein and their respective counsel in connection with the registration or qualification of, the Securities for offer and sale under the securities or “blue sky”
laws of such states of the United States as any Holder reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the offer and sale in such jurisdictions of the Securities covered by the Shelf
Registration Statement; provided, however, that the Company shall not be required to (i) qualify generally to do business in any jurisdiction where it is not then so qualified or (ii) take any action which would subject it to general
service of process or to taxation in any jurisdiction where it is not then so subject. 
 (g) The Company shall cooperate with
the Holders of the Transfer Restricted Securities to facilitate the timely preparation and delivery of certificates representing the Securities to be sold pursuant to the Shelf Registration Statement free of any restrictive legends and in such
denominations and registered in such names as the Holders may request a reasonable period of time prior to sales of the Securities pursuant to the Shelf Registration Statement, except in such cases where such Transfer Restricted Securities are
required to be, or may be, issued only in book-entry form pursuant to the terms of the Certificate of Designations. 
 (h)
Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 2(b) above during the Shelf Registration Period, the Company shall promptly prepare and file a post-effective amendment to the Shelf Registration
Statement or a supplement to the related prospectus and any other required document so that, as thereafter delivered to Holders of the Securities or purchasers of Securities, the prospectus will not contain an untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Initial Purchasers or the Holders of
Transfer Restricted Securities included within the coverage of the Shelf Registration Statement to suspend the use of the prospectus as a result of any of the events described in paragraphs (ii) through (v) of Section 2(b) above or as
a result of the filing of any post-effective amendment pursuant to Section 2(a)(iii), until the requisite changes to the prospectus have been made or the post-effective amendment has become effective, as the case may be, the Initial Purchasers
and the Holders shall suspend use of such prospectus. 
 (i) [reserved] 
 (j) The Company will comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the Shelf
Registration and will make generally available to its security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the provisions of Section 11(a) of the Securities Act, no
later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month of the Company’s first fiscal quarter commencing after the effective date of the Shelf Registration Statement,
which statement shall cover such 12-month period. 
 (k) The Company may require each Holder of Securities to be sold pursuant
to the Shelf Registration Statement to furnish to the Company, pursuant to the Questionnaire or otherwise, such information regarding the Holder and the distribution of the Securities as the Company may from time 

  

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to time reasonably require for inclusion in the Shelf Registration Statement, and the Company may exclude from such registration the Securities of any Holder
that fails to furnish such information within the applicable time period specified in Section 2(a) above. 
 (l) The
Company shall enter into such customary agreements and take all such other action, if any, as any Holder of the Securities shall reasonably request in order to facilitate the disposition of the Securities pursuant to any Shelf Registration.

 (m) In the case of any Shelf Registration, the Company shall (i) make reasonably available for inspection by the
Holders of the Securities, any underwriter participating in any disposition pursuant to the Shelf Registration Statement and any attorney, accountant or other agent retained by the Holders of the Securities or any such underwriter all relevant
financial and other records, pertinent corporate documents and properties of the Company and (ii) cause the Company’s officers, directors, employees, accountants and auditors to supply all relevant information reasonably requested by the
Holders of the Securities or any such underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement, in each case, as shall be reasonably necessary to enable such persons, to conduct a reasonable investigation within
the meaning of Section 11 of the Securities Act; provided, however, that the foregoing inspection and information gathering shall be coordinated on behalf of the Initial Purchasers and on behalf of the other parties, by one counsel designated
by and on behalf of such other parties as described in Section 3 hereof. 
 (n) In the case of any Shelf Registration,
the Company, if requested by any Holder of Securities covered thereby in connection with an underwritten offering of the Securities pursuant to the Shelf Registration Statement, shall cause (i) its counsel (which may include the Company’s
general counsel and/or the Company’s outside counsel) to deliver an opinion or opinions and updates thereto relating to the Securities in customary form addressed to the Managing Underwriters (as defined in Section 7) thereof and dated, in
the case of the initial opinion, the effective date of such Shelf Registration Statement (it being agreed that the matters to be covered by such opinion shall include, without limitation, the due incorporation and good standing of the Company and
its subsidiaries; the qualification of the Company and its subsidiaries to transact business as foreign corporations; the due authorization, execution and delivery of the relevant agreement of the type referred to in Section 7 hereof; the due
authorization, execution, authentication and issuance, and the validity and enforceability, of the applicable Securities; the absence of material legal or governmental proceedings involving the Company and its subsidiaries; the absence of
governmental approvals required to be obtained in connection with the Shelf Registration Statement, the offering and sale of the applicable Securities, or any agreement of the type referred to in Section 7 hereof; the compliance as to form of
such Shelf Registration Statement and any documents incorporated by reference therein with the requirements of the Securities Act; and, as of the date of the opinion and as of the effective date of the Shelf Registration Statement or most recent
post-effective amendment thereto, as the case may be, the absence from such Shelf Registration Statement and the prospectus included therein, as then amended or supplemented, and from any documents incorporated by reference therein of an untrue
statement of a material fact or the omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any such documents, in the light of the circumstances existing at
the time that such documents were filed with the Commission under the Securities and Exchange Act of 1934, as amended (the “Exchange Act”)); (ii) its officers to execute and deliver all customary documents and certificates and
updates thereof requested by any underwriters of the applicable Securities and (iii) its independent public accountants to provide to the underwriter(s) of the applicable Securities a comfort letter in customary form and covering matters of the
type customarily covered in comfort letters in connection with primary underwritten offerings, subject to receipt of appropriate documentation as contemplated, and only if permitted, by Statement of Auditing Standards No. 72. 
 (o) The Company shall use its reasonable best efforts to cause the Common Stock included in such Shelf Registration Statement to be, upon
resale thereunder, listed on each U.S. securities exchange, if any, on which any shares of Common Stock are then listed. 
  

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 (p) The Company shall use its reasonable best efforts to take all other steps necessary
to effect the registration of the Transfer Restricted Securities covered by the Shelf Registration Statement contemplated hereby. 
 3.
Registration Expenses. 
 (a) All fees and expenses incident to the Company’s performance of and compliance with
this Agreement will be borne by the Company, regardless of whether the Shelf Registration Statement is ever filed or becomes effective, including without limitation: 
 (i) all registration and filing fees and expenses; 
 (ii) all fees and expenses of compliance with federal securities and state “blue sky” or securities laws; 
 (iii) all expenses of printing (including printing certificates and printing of prospectuses), messenger and delivery services and
telephone usage; 
 (iv) all fees and disbursements of counsel for the Company; 
 (v) all application and filing fees in connection with listing on a national securities exchange or automated quotation system pursuant to
the requirements hereof; and 
 (vi) all fees and disbursements of independent certified public accountants of the Company
(including the expenses of any special audit and comfort letters required by or incident to such performance); 
 provided that,
notwithstanding any provision of this Agreement to the contrary, in no event shall the Company bear or be responsible for the payment or reimbursement of underwriting discounts, commissions or similar compensation in connection with an underwritten
offering of the Securities. 
 The Company will bear its internal expenses (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expenses of any annual audit and the fees and expenses of any person, including special experts, retained by the Company. 
 (b) In connection with the Shelf Registration Statement, the Company will reimburse the Initial Purchasers and the Holders of Transfer
Restricted Securities who are selling or reselling Securities pursuant to the “Plan of Distribution” section contained in the Shelf Registration Statement for the reasonable fees and disbursements, which shall not exceed $15,000, of not
more than one counsel, who shall be a nationally recognized firm experienced in securities laws matters that is chosen by the Holders of a majority in number of shares of the Transfer Restricted Securities for whose benefit such Registration
Statement is being prepared or, if the Holders do not so choose, the Initial Purchasers. 
 4. Indemnification. 
 (a) The Company agrees to indemnify and hold harmless each Holder and each person, if any, who controls any such Holder within the meaning
of the Securities Act or the Exchange Act and the respective officers, directors, partners, employees, representatives and agents of any Holder (including any predecessor holder) or any controlling person of a Holder (each Holder and such persons
are referred to as an “Indemnified Holder”) from and against any losses, claims, damages or liabilities, joint or several, or any actions in respect thereof (including, but not limited to, any losses, claims, damages, liabilities or
actions relating to purchases and sales of the Securities) to which each Indemnified Holder may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or
are based upon any untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to the Shelf
Registration or any other materials or information provided to investors by, or with the written approval of, the Company in connection with any offering pursuant to the Shelf Registration Statement, or arise out of, or are based upon, the omission
or alleged omission to state therein 

  

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a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, and shall reimburse, as incurred, the Indemnified Holders for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action in respect thereof;
provided, however, that (i) the Company shall not be liable under this Section 4(a) in any such case to the extent that such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement
or omission or alleged omission made in the Shelf Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration in reliance upon and in conformity with written
information pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any
preliminary prospectus relating to the Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder from whom the person asserting any such losses, claims, damages or
liabilities purchased the Securities concerned, to the extent that a prospectus relating to such Securities was required to be delivered by such Holder under the Securities Act in connection with such purchase and any such loss, claim, damage or
liability of such Holder results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Securities to such person, a copy of the final prospectus if the Company had previously
furnished or made available copies thereof to such Holder. This indemnity agreement will be in addition to any liability which the Company may otherwise have to any Indemnified Holder. The Company shall notify each Indemnified Party promptly of this
institution, threat or assertion of any Claim, proceeding (including any governmental investigation) or litigation in connection with the matters addressed by this Agreement that involves the Company or such Indemnified Party. 
 (b) Each Holder agrees, severally and not jointly, to indemnify and hold harmless the Company, its officers and directors and each
person, if any, who controls the Company, its officers and directors within the meaning of the Securities Act or the Exchange Act from and against any losses, claims, damages or liabilities or any actions in respect thereof, to which the Company or
any such person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue statement of a material
fact contained in a Shelf Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration or any other materials or information provided to investors by, or with the
written approval of, the Company in connection with any offering pursuant to the Shelf Registration Statement, or arise out of or are based upon the omission or alleged omission to state therein a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, but in each case only to the extent that the untrue statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with
written information pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically for inclusion therein. The liability of any Holder under this Section 4(b) shall in no event exceed the net proceeds received
by such Holder from sales of Registrable Securities giving rise to such obligation. 
 (c) Promptly after receipt by a party
of notice of the commencement of any action or proceeding (including a governmental investigation), such party (the “Indemnified Person”) will, if a claim in respect thereof is to be made against any party under this Section 4
(each an “Indemnifying Person”), notify the Indemnifying Person of the commencement thereof; but the omission so to notify the Indemnifying Person will not, in any event, relieve the Indemnifying Person from any obligations to any
Indemnified Person (including the contribution provision hereof) that the Indemnifying Person may have under paragraph (a) or (b) above, except to the extent that the Indemnifying Person has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure, or otherwise than under paragraph (a) or (b) above. In case any such action is brought against any Indemnified Person, and it notifies the Indemnifying Person of the
commencement thereof, the Indemnifying Person will be entitled to participate therein and, to the extent that it may wish, jointly with any other Indemnifying Person similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such Indemnified Person (who shall not, except with the consent of the Indemnified Person, be counsel to the Indemnifying Person), and after notice from the Indemnifying 

  

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Person to such Indemnified Person of its election so to assume the defense thereof the Indemnifying Person will not be liable to such Indemnified Person
under this Section 4 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such Indemnified Person in connection with the defense thereof. In any such proceeding, any Indemnified Person shall
have the right to retain its own counsel at its own expense. Notwithstanding the foregoing, the Indemnifying Person shall pay as incurred (or within 30 days of presentation) the fees and expenses of the counsel retained by the Indemnified Person in
the event (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the retention of such counsel, (ii) the named parties to any such proceeding (including any impleaded parties) include both the Indemnifying
Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them or (iii) the Indemnifying Person shall have failed to assume the defense
of and employ counsel reasonably acceptable to the Indemnified Person within a reasonable period of time after notice of commencement of the action. The Indemnifying Person shall not be liable for any settlement of any proceeding effected without
its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify the Indemnified Person from and against any loss or liability by reason of such settlement or
judgment. No Indemnifying Person shall, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened action in respect of which any Indemnified Person is or could have been a party and indemnity
could have been sought hereunder by such Indemnified Person unless such settlement (i) includes an unconditional release of such Indemnified Person from all liability on any claims that are the subject matter of such action, and (ii) does
not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person. 
 (d) If the indemnification provided for in this Section 4 is unavailable or insufficient to hold harmless an Indemnified Person under subsections (a) or (b) above in respect of any losses, claims, damages or liabilities (or
actions or proceedings in respect thereof) referred to therein, except by reason of the exceptions set forth in Section 4(a) or (b) or the failure of the Indemnified Person to give notice as required in Section 4(c), then each
Indemnifying Person shall contribute to the amount paid or payable by such Indemnified Person as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to in subsection (a) or (b) above in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Person or Persons on the one hand and the Indemnified Person on the other in connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities (or actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or such Holder or such other Indemnified Person, as the case may be, on the other, and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid by an Indemnified Person as a result of the losses, claims, damages or liabilities referred to in the first sentence
of this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Person in connection with investigating or defending any action or claim which is the subject of this subsection (d).
Notwithstanding any other provision of this Section 4(d), no Holder shall be required to contribute any amount in excess of the amount by which the net proceeds received by such Holder from the sale of the Securities pursuant to the Shelf
Registration Statement exceeds the amount of damages which such Holder would have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such
Indemnified Person within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such Indemnified Person and each person, if any, who controls the Company within the meaning of the Securities Act or the
Exchange Act shall have the same rights to contribution as the Company. 
 (e) The remedies provided by this Section 4
are not exclusive and shall not limit any rights or remedies that may otherwise be available to any indemnified party at law or in equity. The agreements 

  

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contained in this Section 4 shall survive the sale of the Securities pursuant to the Shelf Registration Statement and shall remain in full force and
effect, regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party. 
 5. Additional Dividends Under Certain Circumstances. 
 (a) Additional dividends (“Additional
Dividends”) with respect to the Convertible Preferred Stock shall accrue as follows if any of the following events occur (each such event in clauses (i) through (iii) below being herein called a “Registration
Default”): 
 (i) the Shelf Registration Statement required by this Agreement is not filed with the Commission within
30 days after the date of the Commitment Letter; 
 (ii) the Shelf Registration Statement required by this Agreement is not
declared effective by the Commission within 120 days after the date of the Commitment Letter; or 
 (iii) after the Shelf
Registration Statement required by this Agreement has been declared effective by the Commission (A) such Shelf Registration Statement thereafter ceases to be effective or (B) the Shelf Registration Statement or the related prospectus
ceases to be usable in connection with resales of Transfer Restricted Securities during the Shelf Registration Period. 
 Each of the
foregoing will constitute a Registration Default whatever the reason for any such event and whether it is voluntary or involuntary or is beyond the control of the Company or pursuant to operation of law or as a result of any action or inaction by
the Commission. 
 Additional Dividends shall accrue on the shares of Convertible Preferred Stock from and including the date on which any
such Registration Default shall occur to but excluding the date on which all such Registration Defaults have been cured, at a rate of 1.00% per annum for the first 30 days of such Registration Default and at a rate of 1.50% per annum
thereafter, in addition to the dividends otherwise accruing on the Convertible Preferred Stock. 
 (b) Additional Dividends
shall not accrue as a result of any Registration Default referred to in Section 5(a)(iii) hereof if (i) such Registration Default has occurred solely as a result of (x) the filing of a post-effective amendment to the Shelf
Registration Statement to incorporate annual audited financial information with respect to the Company where such post-effective amendment is not yet effective and needs to be declared effective to permit Holders to use the related prospectus,
(y) the filing of a post-effective amendment to the Shelf Registration Statement pursuant to Section 2(a)(iii) or (z) other material events with respect to the Company that would need to be described in the Shelf Registration
Statement or the related prospectus and (ii) in the case of clauses (x) and (z), the Company is proceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and related prospectus to describe such events;
provided, however, that in the case of clauses (x) or (z) if such Registration Default occurs for a continuous period in excess of 30 days or for more than 90 days in the aggregate during any 365-day period, Additional Dividends shall be
payable in accordance with the above paragraph from the day such Registration Default occurs until such Registration Default is cured. 
 (c) Any amounts of Additional Dividends due pursuant to Section 5(a) will be payable on the regular dividend payment dates with respect to the Convertible Preferred Stock on the same terms and conditions and
subject to the same limitations as pertain at such time for the payment of regular quarterly dividends. The amount of Additional Dividends will be determined by multiplying 1.00% or 1.50%, as applicable, by the aggregate liquidation preference of
the outstanding shares of Convertible Preferred Stock and further multiplied by a fraction, the numerator of which is the number of days the applicable Additional Dividend rate was applicable during such period, and the denominator of which is 360.

 6. Rules 144 and 144A. The Company shall file the reports required to be filed by it under the Securities Act and the Exchange Act
in a timely manner and, if at any time during the Shelf Registration Period the Company is not required to file such reports, it will, upon the request of any Holder of Transfer 

  

 9 

 
Restricted Securities, make publicly available other information so long as necessary to permit sales of their Securities pursuant to Rules 144 and 144A. The
Company covenants that it will take such further action as any Holder of Transfer Restricted Securities may reasonably request, all to the extent required from time to time to enable such Holder to sell Transfer Restricted Securities without
registration under the Securities Act within the limitation of the exemptions provided by Rules 144 and 144A (including the requirements of Rule 144A(d)(4)). The Company will provide a copy of this Agreement to prospective purchasers of Securities
identified to the Company by the Initial Purchasers upon request. Upon the request of any Holder of Transfer Restricted Securities, the Company shall deliver to such Holder a written statement as to whether it is subject to and has complied with the
reporting requirements referenced in the first sentence of this Section 6. Notwithstanding the foregoing, nothing in this Section 6 shall be deemed to require the Company to register any of its securities or to file periodic, current or
other reports pursuant to the Exchange Act. 
 7. Underwritten Registrations. If any of the Transfer Restricted Securities covered by
any Shelf Registration are to be sold in an underwritten offering, (a) the investment banker or investment bankers and manager or managers that will administer the offering (“Managing Underwriters”) will be selected by the
Holders of a majority in number of shares of such Transfer Restricted Securities to be included in such offering and (b) the Company shall, if requested, enter into an underwriting agreement in customary form in connection therewith.

 No person may participate in any underwritten registration hereunder unless such person (i) agrees to sell such person’s
Transfer Restricted Securities on the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 
 8.
Miscellaneous. 
 (a) Remedies. The Company acknowledges and agrees that any failure by the Company to comply
with its obligations under Section 1 hereof may result in material injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that it will not be possible to measure damages for such injuries precisely and
that, in the event of any such failure and in addition to the Additional Dividends or other rights of the Initial Purchasers or any Holder, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the
Company’s obligations under Section 1 hereof. The Company further agrees to waive the defense in any action for specific performance that a remedy at law would be adequate. 
 (b) No Inconsistent Agreements. The Company will not on or after the date of this Agreement enter into any agreement with respect
to its securities that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not in any way conflict with and are not inconsistent
with the rights granted to the holders of the Company’s securities under any agreement in effect on the date hereof. 
 (c) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, except by the Company and the written
consent of the Holders of a majority in number of the shares of the Transfer Restricted Securities affected by such amendment, modification, supplement, waivers or consents (provided that Holders of Common Stock issued upon conversion of Convertible
Preferred Stock shall be deemed to be Holders of the aggregate number of shares of Convertible Preferred Stock from which such Common Stock was converted) without the consent of each Holder of each share of Convertible Preferred Stock then
outstanding, including in the case of an amendment, modification or supplement of Section 4, any person who was a holder of Transfer Restricted Securities disposed of pursuant to the Shelf Registration Statement (provided that Holders of Common
Stock issued upon conversion of Convertible Preferred Stock shall be deemed to be Holders of the aggregate number of shares of Convertible Preferred stock from which such Common Stock was converted). Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders of Transfer Restricted Securities whose Securities are being sold pursuant to the Shelf Registration Statement and that does

  

 10 

 
not directly or indirectly affect, impair, limit or compromise the rights of other Holders of Transfer Restricted Securities may be given by Holders of at
least a majority in number of shares of the Transfer Restricted Securities being sold by such Holders pursuant to such Shelf Registration Statement (provided that Holders of Common Stock issued upon conversion of Convertible Preferred Stock shall be
deemed to be Holders of the aggregate number of shares of Convertible Preferred Stock from which such Common Stock was converted). Each Holder of Transfer Restricted Securities outstanding at the time of any amendment, modification, supplement,
waiver, or consent or thereafter shall be bound by any such amendment, modification, supplement, waiver, or consent effected pursuant to this Section, whether or not any notice of such amendment, modification, supplement, waiver, or consent is
delivered to such Holder 
 (d) Notices. All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail, facsimile transmission, or courier which guarantees overnight delivery: 
 (1) if to the Holders, at the most current address shown for the Holders in the records of the Company’s transfer agent and registrar for the Convertible Preferred Stock and Common Stock, unless the Holder shall
have provided notice information in a notice and questionnaire related to the Shelf Registration Statement or any amendment thereto, in which case such information shall control: 
 (2) if to the Initial Purchasers: 
 Capital Ventures International 
 c/o Heights Capital Management, Inc. 
 101 California Street 
 Suite 3250 
 San Francisco, CA 94111 
 Linden Capital L.P. 
 c/o Linden Advisors 
 450 Park Avenue 
 New York, NY 10022 
 Investcorp Silverback Arbitrage Master Fund Limited 
 c/o Silverback Asset Management, LLC 
 1414 Raleigh Road 
 Suite 250 
 Chapel Hill, NC 27517 
 Silver Oak Capital, L.L.C. 
 245 Park Avenue, 26th Floor 
 New York, NY 10167

 Kenmont Special Opportunities Master Fund, L.P. 
 c/o Kenmont Investments Management, L.P. 
 711 Louisiana 
 Suite 1750 
 Houston, Texas 77002 
 Man Mac Miesque 10B Ltd. 
 c/o Kenmont Investments Management, L.P. 
 711 Louisiana 
 Suite 1750 
 Houston, Texas 77002 
 Fursa Master Global Event Driven Fund, LP 
 444 Merrick Road 
  

 11 

 Suite 104 
 Lynbrook, NY 11563 
 Whitebox Convertible Arbitrage Partners, LP 
 3033 Excelsior Boulevard 
 Suite 300 
 Minneapolis, MN 55416 
 Whitebox Hedged High Yield Partners, LP 
 3033 Excelsior Boulevard 
 Suite 300 
 Minneapolis, MN 55416 
 Pandora Select Partners, LP 
 3033 Excelsior Boulevard 
 Suite 300 
 Minneapolis, MN 55416 
 Whitebox Intermarket Partners, LP 
 3033 Excelsior Boulevard 
 Suite 300 
 Minneapolis, MN 55416 
 Guggenheim Portfolio Company XXXI, LLC 
 3033 Excelsior Boulevard 
 Suite 300 
 Minneapolis, MN 55416 
 GPC LIX, LLC 
 3033 Excelsior Boulevard 
 Suite 300 
 Minneapolis, MN 55416 
 RHP Master Fund, Ltd. 
 c/o Rock Hill Investment Management, L.P. 
 Three Bala Plaza East 
 Suite 585 
 Bala Cynwyd, PA 19004 
 Basso Fund Ltd. 
 1266 East Main Street 
 Stamford, CT 06902 
 Basso Holdings Ltd. 
 c/o Basso Capital Management L.P. 
 1266 East Main Street, 4th Floor 
 Stamford, CT 06902 
 Basso Multi-Strategy Holding Fund Ltd. 
 c/o Basso Capital Management L.P. 
 1266 East Main Street, 4th Floor 
 Stamford, CT 06902

 Greenwich Investment Partners 
 546 Fifth Avenue, 14th Floor 
 New York, NY 10036

  

 12 

 Dr. Wolfgang Rupf 
 Altkönigstr. 41 
 61462 Königstein 
 Germany 
 AKV Altkönig Verwaltungs GmbH 
 Altkönigstr. 41 
 61462 Königstein 
 Germany 
 (3)
if to the Company, at its address as follows: 
 Transmeridian Exploration Incorporated 
 397 N. Sam Houston Parkway E., Suite 300 
 Houston, Texas 77060 
 Attention: Nicolas J. Evanoff 
 with a copy (which shall not constitute notice) to: 
 Akin Gump Strauss Hauer & Feld LLP 
 1111 Louisiana Street, 44th Floor 
 Houston, Texas 77002 
 Attention: James L. Rice III 
 All such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; the earlier of the
date indicated on the notice of receipt and five business days after being deposited in the mail, postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator, if sent by facsimile transmission during
normal business hours; and on the day delivered, if sent by overnight air courier guaranteeing next day delivery. 
 (e)
Third Party Beneficiaries. The Holders shall be third party beneficiaries to the agreements made hereunder between the Company, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such
agreements directly to the extent they may deem such enforcement necessary or advisable to protect their rights or the rights of Holders hereunder. 
 (f) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties, including, without the need for an express assignment or any
consent by the Company thereto, subsequent Holders of Transfer Restricted Securities. The Company hereby agrees to extend the benefits of this Agreement to any Holder of Transfer Restricted Securities and any such Holder may specifically enforce the
provisions of this Agreement as if an original party hereto. 
 (g) Counterparts. This Agreement may be executed in
any number of counterparts and by the parties hereto in separate counterparts, including by facsimile, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 (h) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise
affect the meaning hereof. 
 (i) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN N.Y. GEN. OBLIG. LAW SECTION 5-1401). EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS
SITTING IN MANHATTAN, NEW YORK CITY, THE STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
  

 13 

 (j) Severability. If any one or more of the provisions contained herein, or the
application thereof in any circumstance, is held by a court of competent jurisdiction to be invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term,
provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter
declared invalid, illegal, void or unenforceable. 
 (k) Securities Held by the Company. Whenever the consent or
approval of Holders of a specified number of Transfer Restricted Securities is required hereunder, Securities held by the Company or its affiliates (other than the Initial Purchasers or other Holders of Transfer Restricted Securities deemed to be
affiliates solely by reason of their holdings of such Securities) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 
 (l) Entire Agreement. This Agreement, together with the Purchase Agreement, the Commitment Letter, the Additional Return
Agreement, dated June 18, 2007, by and among the Company and the Initial Purchasers party thereto, the Additional Return Agreement, dated June 26, 2007, by and among the Company and the Initial Purchasers party thereto, and the Certificate
of Designations, is intended by the parties as a final and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein and any and all prior oral or written agreements,
representations, or warranties, contracts, understandings, correspondence, conversations and memoranda between the Initial Purchasers, on the one hand, and the Company, on the other, or between or among any agents, representatives, parents,
subsidiaries, affiliates, predecessors in interest or successors in interest with respect to the subject matter hereof and thereof are merged herein and replaced hereby. 
 (m) Existing Registration Rights Agreement. This Agreement shall be deemed to terminate and cancel, and to supersede and replace
in its entirety, the Registration Rights Agreement, dated as of June 18, 2007, by and among the Company and the Initial Purchasers party thereto. 
  

 14 

 If the foregoing is in accordance with your understanding of our agreement, please sign and return to the
Company a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the Initial Purchasers and the Company in accordance with its terms. 
  

			
	 Very truly yours,
  
 Transmeridian Exploration Incorporated

		
	By:	 	/s/ Nicolas J. Evanoff
	Name:	 	Nicolas J. Evanoff
	Title:	 	 Vice President, General Counsel and
 Secretary

  

 Signature Page to Registration Rights Agreement 

 The foregoing Registration 
 Rights Agreement is hereby confirmed 
 and accepted as of the date first 
 above written. 
  

			
	 CAPITAL VENTURES INTERNATIONAL
  
 BY    HEIGHTS CAPITAL MANAGEMENT,
INC., ITS AUTHORIZED AGENT

			
		
	BY	 	/S/ MARTIN KOBINGER
		 	 NAME: MARTIN KOBINGER
 TITLE: INVESTMENT MANAGER

  

			
	LINDEN CAPITAL L.P.
		
	BY	 	/S/ CRAIG JARVIS
		 	 NAME: CRAIG JARVIS
 TITLE: AUTHORIZED SIGNATORY

  

			
	SILVER OAK CAPITAL, L.L.C.
		
	BY	 	/S/ MICHAEL L. GORDON
		 	 NAME: MICHAEL L. GORDON
 TITLE: MANAGING MEMBER

  

			
	INVESTCORP SILVERBACK ARBITRAGE MASTER FUND LIMITED

			
		
	BY	 	/S/ ELLIOT BOSSEN
		 	 NAME: ELLIOT BOSSEN
 TITLE: CIO

  

			
	 RHP MASTER FUND, LTD.
  
 BY    ROCK HILL INVESTMENT
MANAGEMENT, LP
  
 BY    RHP GENERAL PARTNER, LLC

		
	BY	 	/S/ WAYNE BLOCH
		 	 NAME: WAYNE BLOCH
 TITLE: MANAGING PARTNER

  

 Signature Page to Registration Rights Agreement 

			
	 KENMONT SPECIAL OPPORTUNITIES MASTER FUND, L.P.
  
 BY KENMONT INVESTMENTS MANAGEMENT, L.P.

			
		
	BY	 	/S/ JOHN HARKRIDER
		 	 NAME: JOHN HARKRIDER
 TITLE: MANAGING DIRECTOR & CFO

  

			
	 MAN MAC MIESQUE 10B LTD.
  
 BY KENMONT INVESTMENTS MANAGEMENT, L.P.

		
	BY	 	/S/ JOHN HARKRIDER
		 	 NAME: JOHN HARKRIDER
 TITLE: MANAGING DIRECTOR & CFO

  

			
	FURSA MASTER GLOBAL EVENT DRIVEN FUND, LP

			
		
	BY	 	/S/ WILLIAM F. HARLEY III
		 	 NAME: WILLIAM F. HARLEY III
 TITLE: PRESIDENT & CIO

  

			
	WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, LP

			
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 Title: COO

  

			
	WHITEBOX HEDGED HIGH YIELD PARTNERS, LP

			
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	PANDORA SELECT PARTNERS, LP
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

 Signature Page to Registration Rights Agreement 

			
	WHITEBOX INTERMARKET PARTNERS, LP
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	GUGGENHEIM PORTFOLIO CO. XXXI, LLC
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	GPC LIX, LLC
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	BASSO FUND LTD.
		
	BY	 	/S/ HOWARD I. FISCHER
		 	 NAME: HOWARD I. FISCHER
 TITLE: AUTHORIZED SIGNATORY

  

			
	BASSO HOLDINGS LTD.
		
	BY	 	/S/ HOWARD I. FISCHER
		 	 NAME: HOWARD I. FISCHER
 TITLE: AUTHORIZED SIGNATORY

  

			
	BASSO MULTI-STRATEGY HOLDING FUND LTD.

			
		
	BY	 	/S/ HOWARD I. FISCHER
		 	 NAME: HOWARD I. FISCHER
 TITLE: AUTHORIZED SIGNATORY

  

 Signature Page to Registration Rights Agreement 

			
	GREENWICH INVESTMENT PARTNERS, LP
		
	BY	 	/S/ MICHAEL C. ESPOSITO
		 	 NAME: MICHAEL C. ESPOSITO
 TITLE: MEMBER OF GENERAL PARTNER OF GREENWICH INVESTMENT PARTNERS,
LP

  

	
	DR. WOLFGANG RUPF
	
	/S/ DR. WOLFGANG RUPF
	

  

			
	AKV ALTKÖNIG VERWALTUNGS GMBH
		
	BY	 	/S/ MATTHIAS RUPF
		 	 NAME: MATTHIAS RUPF
 TITLE:

  

 Signature Page to Registration Rights AgreementRegulation D Purchase Agreement

 Exhibit 10.1 
 Transmeridian Exploration Incorporated 
 20% Junior Redeemable Convertible Preferred Stock

 REGULATION D PURCHASE AGREEMENT 
 This REGULATION D PURCHASE AGREEMENT (this “Agreement”) is by and among Transmeridian Exploration Incorporated, a Delaware corporation (the “Company”), and the Regulation D Purchasers
listed on the signature pages hereto (the “Regulation D Purchasers”). 
 WHEREAS: 
 A. The Company proposes to issue and sell an aggregate 550,000 shares of its 20% Junior Redeemable Convertible Preferred Stock (the
“Securities”) for a purchase price of $100.00 per share. The Securities will be offered and sold within the United States directly to certain purchasers (named herein) of the Securities (the “Regulation D
Purchasers”) in a private placement (the “Regulation D Placement”) without being registered under the Securities Act of 1933, as amended, and the rules and regulations of the Securities and Exchange Commission (the
“Commission”) thereunder (collectively, the “Securities Act”) in reliance upon Section 4(2) thereof and Regulation D thereunder (“Regulation D”). 
 B. In connection with the Regulation D Placement, the Company has entered into a placement agency agreement (the “Placement Agency
Agreement”) with Jefferies & Company, Inc. (the “Placement Agent”). 
 C. The Securities will be issued
pursuant to the Certificate of Designations filed with the Delaware Secretary of State on June 18, 2007 (the “Certificate of Designations”). 
 D. Holders of the Securities will be entitled to the benefits of a registration rights agreement (the “Registration Rights Agreement”) to be entered into among the Company and the Regulation D
Purchasers pursuant to which the Company will agree, among other things to (i) file a shelf registration statement (the “Registration Statement”) with the Commission; (ii) use their reasonable best efforts to cause the Registration
Statement to be declared effective under the Securities Act and (iii) use their reasonable best efforts to keep the Registration Statement effective until such time as the Securities have been sold or are eligible to be sold under Rule 144(k) under
the Securities Act, in each case, within the timeframe, and subject to the provisions contained therein. 
 E. The Company, the Placement
Agent and The Bank of New York, as escrow agent, will enter into an escrow agreement (the “Escrow Agreement”) to provide for the escrow of a portion of the Securities and a portion of the proceeds from the sale of the Securities
pursuant to the terms of the Escrow Agreement. 

 F. This Agreement, the Certificate of Designations, the Registration Rights Agreement and the Escrow
Agreement are referred to herein collectively as the “Transaction Documents,” and the transactions contemplated hereby and thereby are referred to herein collectively as the “Transactions.” This Agreement, the
Registration Rights Agreement, the Certificate of Designations and the Amended and Restated Commitment Letter dated June 18, 2007, between the Company and the investors party thereto (the “Commitment Letter”) are referred herein
collectively as the “Regulation D Purchase Documents.” Nothing in this Agreement should be read to limit or otherwise modify the terms and other provisions of the Engagement Letter, dated as of May 4, 2007, as amended by Amendment
to Engagement Letter dated June 18, 2007 (the “Engagement Letter”), between the Company and the Placement Agent, provided that, in the event any terms of the Engagement Letter are inconsistent with or contradict any terms of
this Agreement, this Agreement shall govern. 
 G. The Company has prepared (i) a preliminary confidential offering memorandum, dated June
12, 2007 (the “Preliminary COM”), relating to the Regulation D Placement, (ii) Supplement No. 1 to the Preliminary COM dated June 17, 2007 and (iii) Supplement No. 2 to the Preliminary COM dated June 18, 2007 (together, the
“COM”). “COM” means, as of any date or time referred to in this Agreement, the most recent information memorandum (including any amendment or supplement thereto), including exhibits and schedules thereto and documents
incorporated by reference therein. 
 NOW, THEREFORE, the Company hereby agrees, and the Regulation D Purchasers hereby severally agree as
follows: 
 1. PURCHASE AND SALE OF SECURITIES. 
 (a) Purchase and Sale of Securities. 
 (i) Closing. Subject to the satisfaction (or waiver) of
the conditions set forth in Sections 5 and 6, at the closing of the Regulation D Placement (the “Closing”), the Company shall issue and sell to the several Regulation D Purchasers, and the Regulation D Purchasers
severally agree to purchase from the Company on the Closing Date (as defined below), the aggregate liquidation preference of Securities set forth in the confirmations of sale delivered to the Regulation D Purchasers by or on behalf of the Company on
or about the date hereof. The Closing shall occur at the offices of Vinson & Elkins LLP, First City Tower, 1001 Fannin Street, Suite 2500, Houston, Texas 77002-6760. 
 (ii) Determination of Closing Date. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York City
time, on June 26, 2007 (or such later date as is mutually agreed to in writing by the Company and the Placement Agent); provided, however, that if the Closing has not taken place on the Closing Date because of a failure to satisfy one or
more of the conditions specified in Section 5 or Section 6 hereof, “Closing Date” shall mean 10:00 a.m., New York City time, on the first business day following the satisfaction (or waiver) of all such conditions
after notification by the Company to the Placement Agent in writing of the satisfaction (or waiver) of such conditions. 
  

 2 

 (iii) Purchase Price. The purchase price for the Securities to be purchased by the several
Regulation D Purchasers at the Closing (in the aggregate, the “Purchase Price”) shall be set forth in the confirmation of sale delivered to the Regulation D Purchasers by or on behalf of the Company on or about the date hereof and
the payment of the Purchase Price shall be made by the Regulation D Purchasers by wire transfer of immediately available funds in accordance with the instructions set forth in Section 1(b). 
 (b) Closing Mechanics. 
 (i)
Placement Agent to Contact Regulation D Purchasers. On the business day prior to the Closing, the Placement Agent will contact the Regulation D Purchasers to confirm the closing mechanics set forth herein. 
 (ii) Regulation D Purchasers to Fund Purchase Price. On or before 10:00 a.m., New York City time, on the Closing Date, each of the Regulation D
Purchasers will deliver their respective portions of the Purchase Price to the Placement Agent by wire transfer in immediately available funds according to the wire transfer instructions previously delivered to each of such Regulation D Purchasers.
The delivery of funds from a Regulation D Purchaser to the Placement Agent shall be deemed to constitute irrevocable instructions from such Regulation D Purchaser to the Placement Agent that the Regulation D Purchasers’ conditions to the
Closing, as set forth in Section 6, will be deemed to be satisfied upon the Placement Agent’s receipt of all deliverables in satisfaction of the conditions set forth in Section 6. Funds received by the Placement Agent pursuant
to this Section 1 (or funded by the Placement Agent in its sole discretion pursuant to Section 1(b)(iii)) will be held in trust and not as property or in the title of the Placement Agent. 
 (iii) Placement Agent Right to Fund for Late Regulation D Purchasers. In the event that any Regulation D Purchaser shall fail to deliver all or
any of its respective portion of the Purchase Price on or before 10:00 a.m., New York City time, on the Closing Date: 
 (A)
The Placement Agent may, in its sole discretion, but shall not be obligated to, fund the unfunded portion of the Purchase Price applicable to such Regulation D Purchaser, on behalf of such Regulation D Purchaser. The funding of any portion of the
Purchase Price by the Placement Agent pursuant to this Section 1(b)(iii) shall not relieve a defaulting Regulation D Purchaser of any liability that it may have to the Company or the Placement Agent pursuant to this Agreement or for the
breach of its obligations under this Agreement. 
 (B) In the event that the Placement Agent shall have funded any such
unfunded portion as set forth in the preceding clause (A), the Placement Agent may, in its sole discretion, but shall not be obligated to, (I) retain, at and following the Closing, beneficial ownership of the Securities as such Regulation D
Purchaser would have been entitled to had it timely funded, (II) direct the disposition of such Securities to another party or (III) require such Regulation D Purchaser, upon written notice, to purchase such Securities from the Placement Agent
within two business days after the Closing Date at a price equal to the initial offering price of such Securities plus accrued and unpaid dividends to the date of settlement. 
  

 3 

 (C) In the case of the preceding clause (B)(I) or (II), if so requested by the Placement
Agent, (I) such Regulation D Purchaser shall take any action reasonably requested by the Placement Agent to effect the transfer of the applicable Securities to the Placement Agent or such other party, as the case may be, and shall be deemed to
have consented to the Placement Agent retaining and taking beneficial ownership, or directing the disposition, of such Securities and (II) the Company shall transfer registration of such Securities to, or as directed by, the Placement Agent.

 (iv) Distribution of Purchase Price Received by Placement Agent. Upon receipt of the Purchase Price from any Regulation D
Purchaser, the Placement Agent will distribute such funds on the Closing Date to the Company and for deposit into the escrow account in accordance with the terms of the Escrow Agreement and as described in the COM. 
 2. REGULATION D PURCHASERS’ REPRESENTATIONS AND WARRANTIES. 
 Each Regulation D Purchaser represents and warrants, severally and not jointly, that: 
 (a) No Public Sale
or Distribution. The Regulation D Purchaser is acquiring the Securities for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof in a manner that would violate the Securities Act;
provided, however, that by making the representations herein, the Regulation D Purchaser does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any
time in accordance with or pursuant to a registration statement or an exemption under the Securities Act and subject to the terms of the Securities and the Certificate of Designations. The Regulation D Purchaser is acquiring the Securities hereunder
in the ordinary course of its business. The Regulation D Purchaser does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Securities. As used in this Agreement,
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
 (b) Regulation D Purchaser Status. Each of the Regulation D Purchasers acknowledges that it is one of the following: 
 (i) an institutional “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the
Securities Act; or 
 (ii) a “qualified institutional buyer” as defined in Rule 144A(a)(1) under the Securities
Act. 
 Such Regulation D Purchaser also acknowledges that it has the knowledge and experience in financial and business matters as are necessary in order to
evaluate the merits and risks of an investment in the Securities. 
 (c) Reliance on Exemptions. The Regulation D Purchaser
understands that the Securities are being offered and sold in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in 

  

 4 

 
part upon the truth and accuracy of, and the Regulation D Purchasers’ compliance with, the representations, warranties, agreements, acknowledgments and
understandings of the Regulation D Purchasers set forth herein in order to determine the availability of such exemptions and the eligibility of the Regulation D Purchasers to acquire the Securities. 
 (d) No General Solicitation or Advertising. The Regulation D Purchaser has not engaged, and will not engage, directly or indirectly in any form of
“general solicitation” or “general advertising” in connection with the offering of the Securities (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning
of Section 4(2) of the Securities Act. 
 (e) Independent Evaluation. The Regulation D Purchaser confirms and agrees that
(i) it has independently evaluated the merits of its decision to purchase the Securities, (ii) it has not relied on the advice of the Placement Agent or any of its respective affiliates or any representative of the Placement Agent or their
respective affiliates in making such decision, and (iii) neither the Placement Agent nor any of its respective representatives has any responsibility with respect to the completeness or accuracy of any information or materials furnished to the
Regulation D Purchaser in connection with the transactions contemplated hereby, including the Preliminary COM and COM. 
 (f)
Information. The Regulation D Purchaser acknowledges that the Company has made available to the Regulation D Purchaser such materials relating to the business, finances and operations of the Company and relating to the offer and sale of the
Securities as have been specifically requested by the Regulation D Purchaser. The Regulation D Purchaser and its advisors, if any, have been afforded the opportunity to ask questions of the Company. The Regulation D Purchaser understands that its
investment in the Securities involves a high degree of risk and is able to bear the economic risk of such investment. The Regulation D Purchaser has such knowledge and experience in financial and business matters as to be capable of evaluating the
merits and risks of its investment in the Securities and has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities. 
 (g) No Governmental Review. The Regulation D Purchaser understands that no United States agency or any other government or governmental agency has
passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities. 
 (h) Transfer or Resale. The Regulation D Purchaser understands that: (i) the Securities have not been and will not be registered under the
Securities Act or any state securities laws; (ii) the Regulation D Purchaser agrees that if it decides to offer, sell or otherwise transfer any of the Securities, such Securities may be offered, sold or otherwise transferred only:
(A) pursuant to an effective registration statement under the Securities Act and in compliance with the plan of distribution set forth therein; (B) to the Company or (C) within the United States (1) in accordance with an
exemption from registration under the Securities Act and in compliance with any applicable state securities laws, or (2) in a transaction that does not require registration under the Securities Act or applicable state securities laws. In
connection with any transfer of the 

  

 5 

 
Securities other than pursuant to an effective registration statement, to the Company or to an affiliate of the Regulation D Purchaser or in connection with
a pledge as contemplated in Section 4(g), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which
opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities Act. As a condition of transfer, any such transferee shall agree in writing
to be bound by the terms of this Agreement and shall have the rights of a Regulation D Purchaser under this Agreement and the Registration Rights Agreement. 
 (i) Legends. The Regulation D Purchaser understands that upon the original issuance thereof, and until such time as the same is no longer required under applicable requirements of the Securities Act or
applicable state securities laws, the certificates or other instruments representing the Securities, if any, all certificates or other instruments issued in exchange therefor or in substitution thereof, if any, and the Securities shall bear or be
subject to one or more appropriate and customary legend(s) substantively similar to those set forth in the Certificate of Designations, and that the Company will give instructions to The Bank of New York as transfer agent and registrar in order to
implement the restrictions on transfer set forth and described herein. 
 (j) Validity; Enforcement. This Agreement has been duly and
validly authorized, executed and delivered on behalf of the Regulation D Purchaser and constitutes the legal, valid and binding obligation of the Regulation D Purchaser enforceable against the Regulation D Purchaser in accordance with its terms,
except as such enforceability may be limited by general principles of equity or by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors’ rights and remedies. 
 (k) Residency. For purposes of U.S. securities laws, the Regulation D Purchaser is a resident
of the jurisdiction specified with respect to such Regulation D Purchaser on Annex A hereto. 
 3. REPRESENTATIONS AND WARRANTIES
OF THE COMPANY. 
 In addition to the other representations, warranties and agreements contained in this Agreement, the Company hereby
represents, warrants and agrees with, the Regulation D Purchasers as follows: 
 (a) Financial Statements. The financial statements,
and the related notes thereto, of the Company included or incorporated by reference in the COM present fairly, in all material respects, the consolidated financial position of the Company and its consolidated subsidiaries as of the dates indicated
and the results of their operations and the changes in their consolidated cash flows for the periods specified; and said financial statements have been prepared in conformity with United States generally accepted accounting principles and practices
applied on a consistent basis, except as described in the notes to such financial statements; and the other financial and statistical information and any other financial data set forth in the COM present fairly, in all material respects, the
information purported to be shown thereby at the 

  

 6 

 
respective dates or for the respective periods to which they apply and, to the extent that such information is set forth in or has been derived from the
financial statements and accounting books and records of the Company, have been prepared on a basis consistent with such financial statements and the books and records of the Company. 
 (b) Properties and Assets. The Company and each of its subsidiaries have good and indefeasible title with respect to all of their respective real
property, and have good and marketable title to all of their respective properties and assets (other than real property), reflected as owned in the financial statements included in the COM, subject in each case to liens in favor of holders of the
Company’s debt securities or other lenders or as set forth in the COM. The Company and each of its respective subsidiaries holds its leased properties under valid and binding leases, with such exceptions as are not materially significant in
relation to the business of the Company and its respective subsidiaries taken as a whole. The description of the rights, licenses and agreements of the Company and its subsidiaries related to its Kazakhstan operations contained in the COM accurately
describes such operations rights, licenses and agreements in all material respects. 
 (c) Incorporation and Good Standing. The
Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business as a foreign corporation in each jurisdiction in which such qualification is required, except
where failure to so qualify would not reasonably be expected to have a material adverse effect. For purposes of this Section 3, the term “material adverse effect” shall mean a material adverse effect upon the business, condition
(financial or otherwise), properties or results of operations of the Company and its subsidiaries, taken as a whole, or the ability of the Company to satisfy its obligations under the Transaction Documents or any of the other agreements entered into
by the Company in connection with the issuance and sale of the Securities (a “Material Adverse Effect”). 
 (d) No
Material Adverse Effect. Except as disclosed in Paragraph 3 of the Commitment Letter or in the COM, none of the Company or any of its subsidiaries has sustained a Material Adverse Effect since the date of the latest audited financial statements
included in the COM. 
 (e) Capitalization and Other Capital Stock Matters. As of the date hereof, the Company is authorized to issue
up to 205,000,000 shares of capital stock, including up to 200,000,000 shares of common stock (“Common Stock”) and up to 5,000,000 shares of preferred stock, par value of $0.0006 per share. As of May 31, 2007, the Company had
(i) 108,684,080 shares of the Common Stock outstanding, (ii) 58.093 shares of its Series A Cumulative Convertible Preferred Stock and (iii) 461,998 shares of its 15% Senior Redeemable Convertible Preferred Stock outstanding. All the
issued and outstanding shares of the Company’s capital stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, were not issued in violation
of any preemptive rights or other rights to subscribe for or purchase securities, and conform in all material respects to the description thereof contained in the COM. Except as disclosed in the COM as of the date set forth therein or in the
Company’s filings with the Commission, the Company does not have outstanding any options to purchase, or any preemptive rights or other rights to subscribe for or to purchase, any securities or obligations 

  

 7 

 
convertible into, or any contracts or commitments to issue or sell, shares of its capital stock or any such options, rights, convertible securities or
obligations. The description of the Company’s capital stock, stock bonus and other stock plans or arrangements and the options or other rights granted and exercised thereunder set forth in the COM or in the Company’s filings with the
Commission accurately and fairly presents all material information with respect to such plans, arrangements, options and rights. 
 (f)
Authorization of Securities. The Securities have been duly and validly authorized for issuance by the Company and, when issued in accordance with the terms and conditions contained herein, the Securities will be duly authorized, validly
issued, fully paid and non-assessable and will not be subject to any preemptive or similar rights. The shares of Common Stock into which the Securities are convertible have been duly reserved for issuance in accordance with the terms of the
Securities. 
 (g) Authorization of Subsidiary Capital Stock. All the issued and outstanding shares of capital stock or other equity
interests of each subsidiary of the Company have been duly authorized and validly issued, are fully paid and nonassessable, are owned by the Company or a direct or indirect subsidiary of the Company, have been issued in compliance with applicable
federal and state securities laws and were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and there are no outstanding options to purchase, or any preemptive rights or other
rights to subscribe for or to purchase, any securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of capital stock or other equity interests of any subsidiary of the Company. 
 (h) Underlying Shares. Upon issuance and delivery of the Securities in accordance with this Agreement, the Securities will be convertible at the
option of the holder thereof into shares of the Common Stock in accordance with the terms of the Securities; the Common Stock reserved for issuance upon conversion of the Securities has been duly authorized and reserved and, when issued upon
conversion of the Securities in accordance with the terms of the Securities, will be validly issued, fully paid and non assessable, and the issuance of the Common Stock will not be subject to any preemptive or similar rights. 
 (i) Non-Contravention of Existing Instruments. The Company has the full legal right, corporate power and authority to enter into the Transaction
Documents and the other documents pertaining to the Transaction to which it is (or will become) a party and perform the transactions contemplated hereby and thereby, and the Transaction Documents and such other documents have been (or will have
been) duly authorized, executed and delivered by the Company. The execution, delivery and performance of the Transaction Documents and such other documents by the Company and the consummation of the transactions herein and therein contemplated will
not violate any provision of the certificate of incorporation or bylaws of the Company and will not result in the creation of any lien, charge, security interest or encumbrance upon any assets of the Company pursuant to the terms or provisions
thereof, and will not conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under (i) any agreement, lease, franchise, license, permit or other instrument
to which the Company is a party or by which the Company or any of its properties may be bound or affected and in each case, which would reasonably be expected to have a Material Adverse Effect; or (ii) any statute or any judgment, decree,
order, rule or 

  

 8 

 
regulation of any court or any regulatory body, administrative agency or other governmental body applicable to the Company or any of its properties. No
consent, approval, authorization or other order of any court, regulatory body, administrative agency or other governmental body is required for the execution and delivery of the Transaction Documents or any of the other documents entered into by the
Company in connection with the Transaction, or the consummation of the transactions contemplated by the Transaction Documents or any of the other documents entered into by the Company in connection with the Transaction, except for compliance with
the blue sky laws and federal securities laws applicable to the offering of the Securities. Upon the execution and delivery of the Transaction Documents and assuming the valid execution thereof by the Regulation D Purchasers, each of the Transaction
Documents will constitute a valid and binding obligation of the Company enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and
except as the indemnification agreements of the Company in the Registration Rights Agreement may be limited by federal or state securities laws or the public policy underlying such laws. 
 (j) No Default. Except as disclosed in Paragraph 3 of the Commitment Letter, in the COM or in the Company’s filings with the Commission,
(i) neither the Company nor any of its subsidiaries is in violation or default of any provision of its certificate of incorporation, bylaws or equivalent organizational documents, or in breach of or in default with respect to any provision of
any agreement, judgment, decree, order, lease, franchise, license, permit or other instrument to which it is a party or by which it or any of its properties are bound which would reasonably be expected to have a Material Adverse Effect, and
(ii) there does not exist any state of facts which, with notice or lapse of time or both, would constitute an event of default on the part of the Company or its subsidiaries as defined in such documents and which would reasonably be expected to
have a Material Adverse Effect. 
 (k) No Material Actions or Proceedings. Except as otherwise disclosed in Paragraph 3 of the
Commitment Letter, in the COM or in the Company’s filings with the Commission, (i) there are no legal or governmental actions, suits, proceedings, investigations or inquiries pending and (ii) to the Company’s knowledge, there are
no legal or governmental actions, suits or proceedings threatened, to which the Company or any of its subsidiaries is or may be a party or of which property owned or leased by the Company or any of its subsidiaries is or may be the subject, or
related to environmental or discrimination matters, which actions, suits or proceedings, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect; and no labor disturbance by the employees of the Company
exists or, to the Company’s knowledge, is imminent which would reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its subsidiaries is party to or subject to the provisions of any injunction, judgment,
decree or order of any court, regulatory body, administrative agency or other governmental body which would reasonably be expected to have a Material Adverse Effect. 
 (l) Internal Control Over Financial Reporting. The Company maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) of the Securities Exchange Act of 1934, as
amended and the applicable rules and regulations of the 

  

 9 

 
Commission thereunder (collectively, the “Exchange Act”)) that complies with the requirements of the Exchange Act and has been designed by
the Company’s principal executive officer and principal financial officer, or under their supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles; and except as disclosed in the COM, the Company’s internal control over financial reporting is effective, and the Company is not aware of any material weaknesses in its
internal control over financial reporting. 
 (m) OFAC. The Company covenants that it will not knowingly or recklessly, and that it
will use its reasonable best efforts to ensure that each director, officer, agent or employee of the Company will not knowingly or recklessly, use any part of the net proceeds from the sale of the Securities for any payments to: (a) any
individual or entity listed on the Specially Designated Nationals and Blocked Persons List administered by the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and/or any other similar lists
administered by OFAC pursuant to any authorizing statute, Executive Order or regulation; (b) the government of any country subject to an OFAC Sanctions Program; (c) any individual or entity included on any list of terrorists or terrorist
organizations maintained by the United Nations, the European Union and or the countries in which the Company operates; or (d) any governmental official or employee, political party, official of a political party, candidate for political office,
anyone else acting in an official capacity, or any agent of any such individual or entity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the FCPA (as defined below). 
 (n) FCPA. To the best of the Company’s knowledge, neither the Company nor any director, officer, agent or employee of the Company has made,
directly or indirectly, any payment or promise to pay, or gift or promise to give, or authorized such a promise or gift, of any money or anything of value, directly or indirectly, to (i) any foreign official (as such term is defined in the
United States Foreign Corrupt Practices Act of 1977 (as amended, the “FCPA”)) for the purpose of influencing any official act or decision of such official or inducing him or her to use his or her influence to affect any act or
decision of a governmental authority, or (ii) any foreign political party or official thereof or candidate for foreign political office for the purpose of influencing any official act or decision of such party, official or candidate or inducing
such party, official or candidate to use his, her or its influence to affect any act or decision of a foreign governmental authority, in the case of both (i) and (ii) above, in order to assist the Company to obtain or retain business for,
or direct business, and under circumstances which would subject the Company to liability under the FCPA or any corresponding foreign laws. To the best of the Company’s knowledge, the Company has not made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment of funds or received or retained any funds in violation of any law, rule or regulation. 
 (o)
The documents incorporated by reference in the COM, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act. 
 (p) The information contained in the COM, other than the information in the documents filed with the Commission that form a part of the COM, does not, as of the date of the COM, include any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  

 10 

 (q) Incorporated Documents. The information contained in the following documents that form part of
the COM does not, as of their respective dates of filing with the Commission, include any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading: 
 (i) The Company’s Annual Report on Form 10-K for the year ended
December 31, 2006 filed on March 16, 2007; 
 (ii) The Company’s Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2007 filed on May 10, 2007; 
 (iii) The Company’s Current Reports on Form 8-K dated March 16, 2007 (filed on
March 16, 2007), March 23, 2007 (filed on March 26, 2007), March 26, 2007 (filed on March 27, 2007), April 2, 2007 (filed on April 12, 2007), April 16, 2007 (filed on April 17,
2007), April 25, 2007 (filed on May 2, 2007), May 17, 2007 (filed on May 23, 2007) and May 29, 2007 (filed on June 4, 2007); and 
 (iv) The description of the Common Stock contained in the Company’s registration statement on Form 8-A filed on March 15, 2005. 
 (r) Brokers. Except for the Placement Agent, there is no broker, finder or other party that is entitled to receive from the Company any brokerage or finder’s fee or other fee or commission as a result of
the Regulation D Placement or the transactions contemplated thereby. 
 (s) No Registration Required Under the Securities Act.
Assuming the accuracy of the representations and warranties of the Placement Agents contained in Section 1(B) of the Placement Agency Agreement and of the Regulation D Purchasers contained in this Agreement and the compliance of such
parties with the agreements set forth herein and therein, it is not necessary, in connection with the issuance and sale of the Securities, in the manner contemplated by the Transaction Documents and the COM, to register the offering of the
Securities under the Securities Act. 
 (t) QIBs and Accredited Investors. The Company will not offer or sell any of the Securities to
any person whom it reasonably believes is not (i) a “qualified institutional buyer” as defined in Rule 144A (“QIBs”) or (ii) an institutional “accredited investor” (as defined in clauses (1), (2),
(3) and (7) of Rule 501(a) of Regulation D). 
 (u) Regulation D Purchasers; Compliance With Rule 502(d). The Company will
exercise reasonable care to ensure that the Regulation D Purchasers are not “underwriters” within the meaning of Section 2(a)(11) of the Securities Act and, without limiting the foregoing, that such purchases will comply with Rule
502(d) under the Securities Act. 
  

 11 

 (v) No General Solicitation. To the knowledge of the Company, neither the Company nor any of its
respective affiliates have engaged, or will engage, directly or indirectly in any form of “general solicitation” or “general advertising” in connection with the offering of the Securities (as those terms are used in Regulation D
under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act. To the knowledge of the Company, the Company has not entered, and will not enter, into any arrangement or agreement
with respect to the distribution of the Securities, except for this Agreement, the Placement Agency Agreement, the Escrow Agreement, the Engagement Letter, the Commitment Letter, the Additional Return Agreement dated June 18, 2007, the
Additional Return Agreement to be entered into on June 26, 2007 and the Registration Rights Agreement, and the Company agrees not to enter into any such arrangement or agreement. 
 (w) No Offer and Sale Within Six Months. None of the Company nor any of its respective affiliates have sold or issued any security of the same or
similar class or series as the Securities that would be required to be integrated with the offering of the Securities in a manner that would require registration under the Securities Act during the six-month period preceding the earlier of the date
of this Agreement and the Closing Date, including any sales pursuant to Rule 144A, Regulation D or Regulation S. Neither the Company nor any of its affiliates have any intention of making, and will not make, an offer or sale of any securities that
would be required to be integrated with the offering of the Securities in a manner that would require registration under the Securities Act, for a period of six months after the date of this Agreement, except for the offering of Securities as
contemplated by this Agreement. As used in this paragraph, the terms “offer” and “sale” have the meanings specified in Section 2(a)(3) of the Securities Act. 
 (x) Disclosure. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the
Company confirms that neither it nor any other person acting on its behalf has provided any of the Regulation D Purchasers or their agents or counsel with any information that it believes constitutes or might constitute material, non-public
information as of the date hereof. The Company understands and confirms that the Regulation D Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished by or on behalf
of the Company to the Regulation D Purchasers regarding the Company, its business and the transactions contemplated hereby, is, to the knowledge of the Company, true and correct in all material respects as of the date of such disclosure and
does not contain, to the knowledge of the Company, any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not
misleading. The press releases disseminated by the Company during the twelve (12) months preceding the date of this Agreement taken as a whole do not contain any untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Regulation D Purchaser makes or has made
any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 2 hereof. 
  

 12 

 The Company acknowledges that the Placement Agent and, for purposes of the opinion to be delivered
pursuant to Section 6 hereof, counsel to the Company, will rely upon the accuracy and truthfulness of the foregoing representations and hereby consents to such reliance. 
 4. COVENANTS. 
 (a) Reasonable Best
Efforts. Each party shall use its reasonable best efforts to timely satisfy each of the conditions to be satisfied by it as provided in Sections 5 and 6 of this Agreement. 
 (b) Form D. The Company agrees to file a Form D with respect to the Securities as required under Regulation D and to comply with any applicable
state securities and “Blue Sky” laws in connection with the sale of the Securities. 
 (c) Use of Proceeds. The net proceeds
from the sale of the Securities will be used by the Company in the manner described in the COM under the caption titled “Use of Proceeds.” 
 (d) Fees and Expenses. Except as otherwise set forth in the Regulation D Purchase Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to the
Regulation D Purchasers. 
 (e) Publicity. The Regulation D Purchasers agree that they will not issue any press release or otherwise
make any public statement, filing or other communication regarding the offering or the business, operations or financial condition of the Company without the prior consent of the Company, except to the extent required by law or legal process, in
which case such Regulation D Purchaser shall provide the Company with prior notice of such disclosure. The Company agrees that it will not publicly disclose the names of the Regulation D Purchasers or include the names of the Regulation D
Purchasers, without the prior written consent of the Regulation D Purchasers, in any press release or other public statement, filing or other communication, except (a) in any registration statement in which such Regulation D Purchaser is
identified as a selling securityholder, or (b) to the extent required by law or legal process (including but not limited to by the filing of one or more Form Ds with the Commission regarding the Regulation D Placement), or (c) by the
filing of the Transaction Documents as exhibits to one or more of the Company’s Exchange Act filings. 
 The Company shall, at or before
9:00 a.m., New York time, on the first trading day following execution of this Agreement, issue a press release disclosing the transactions contemplated hereby. No later than the second business day after the Closing Date, the Company shall file a
Current Report on Form 8-K with the Commission describing the terms of the transactions contemplated by the Transaction Documents and including as exhibits to such Current Report on Form 8-K the Transaction Documents not previously filed. Neither
the Company nor any direct or indirect subsidiary shall, nor shall any of their respective officers, directors, employees and agents, provide any Regulation D Purchasers with any material nonpublic information regarding the Company or any
direct or indirect subsidiary from and after the issuance of the above referenced press release without the express written consent of such Regulation D Purchasers. 
  

 13 

 (f) Withholding Taxes. The Regulation D Purchasers shall deliver to the Company a properly
completed and duly executed applicable Internal Revenue Service Form W-8 or W-9 that establishes a complete exemption from United States withholding tax. The Regulation D Purchasers will provide replacement forms upon the obsolescence of such forms
or inaccuracy of any information thereon. 
 (g) Pledge of Securities. The Company agrees that a Regulation D Purchaser may, from time
to time, pledge pursuant to a bona fide margin agreement with a registered broker dealer or grant a security interest in some or all of the Securities to a financial institution that is an “accredited investor” as defined in Rule 501(a)
under the Securities Act and who agrees to be bound by the provisions of this Agreement and the Registration Rights Agreement and, if required under the terms of such arrangement, such Regulation D Purchaser may transfer pledged or secured
Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith.
Further, no notice shall be required of such pledge. At the appropriate Regulation D Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in
connection with a pledge or transfer of the Securities, including, if the Securities are subject to registration pursuant to the Registration Rights Agreement, the preparation and filing of any required prospectus supplement under Rule 424(b)(3)
under the Securities Act or other applicable provision of the Securities Act to appropriately amend the list of selling stockholders thereunder. 
 (h) Listing of Common Stock. The Company hereby agrees to use reasonable best efforts to maintain the listing of the Common Stock on the American Stock Exchange, and as soon as reasonably practicable following the Closing to list all
of the shares of Common Stock issuable upon conversion of the Securities on the American Stock Exchange. The Company further agrees, if the Company applies to have the Common Stock traded on any other trading market, it will include in such
application all of the shares of Common Stock issuable upon conversion of the Securities, and will take such other action as is necessary to cause all of the shares of Common Stock issuable upon conversion of the Securities to be listed on such
other trading market as promptly as possible. The Company will take all action reasonably necessary to continue the listing and trading of its Common Stock on the American Stock Exchange and will comply in all respects with the Company’s
reporting, filing and other obligations under the bylaws or rules of the American Stock Exchange. 
 (i) Subsequent Equity Sales. The
Company agrees that it will not, without the prior written consent of the Regulation D Purchasers, during the period ending 90 days after June 18, 2007, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of Common Stock or any securities convertible into or exercisable or exchangeable
for Common Stock, (ii) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Common Stock or (iii) file with the Commission a registration statement
under the Securities Act relating to any additional shares of Common Stock or securities convertible into, or exchangeable for, any shares of Common Stock, or publicly disclose the intention to effect any transaction described in clause (i),
(ii) or (iii), whether any 

  

 14 

 
such transaction described in clause (i) or (ii) above is to be settled by delivery of Common Stock or such other securities, in cash or otherwise;
provided, however, that the foregoing shall not apply to (A) the sale of the Securities under the Commitment Letter or this Agreement or the issuance of the Common Stock upon conversion of the Securities, (B) the issuance of additional
Securities pursuant to the Investment Rollover Right, as defined in Section 18 of the Certificate of Designations, (C) the grant by the Company of employee or director stock options, restricted stock awards or restricted stock unit awards
in the ordinary course of business, the issuance by the Company of any shares of Common Stock of the Company upon the exercise of an option or upon the sale by the Company of shares of Common Stock pursuant to the Company’s employee stock
purchase plan, (D) any transfer of shares of Common Stock pursuant to the Company’s 401(k) plan, if any, (E) the filing by the Company of any registration statement with the Commission on Form S-8 relating to the offering of
securities pursuant to the terms of the Company’s existing incentive plan or employee stock purchase plan, (F) the Company’s initial filing or filing of an amendment to any registration statement with the Commission on Form S-3 in
accordance with the terms of any previously executed registration rights agreement or in response to any Commission comment letters, (G) the conversion or exercise of a security outstanding on the date hereof and (H) filing of any
registration statement in respect of the Securities and the Common Stock. 
 5. CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

 The obligation of the Company hereunder to issue and sell the Securities to the Regulation D Purchasers at the Closing is subject to the
satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing the
Regulation D Purchasers with prior written notice thereof. 
 (a) The representations and warranties of the Regulation D Purchasers shall be
true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and the Regulation D Purchasers shall have
performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Regulation D Purchasers at or prior to the Closing Date.

 (b) No injunction, restraining order or order of any nature by a governmental authority shall have been issued as of the Closing Date that
would prevent or materially interfere with the consummation of the Regulation D Placement or any of the transactions contemplated thereby; and no stop order suspending the qualification or exemption from qualification of any of the Securities in any
jurisdiction shall have been issued and no proceeding for that purpose shall have been commenced or, to the knowledge of the Regulation D Purchasers after reasonable inquiry, be pending or contemplated as of the Closing Date. 
 (c) [omitted] 
 (d) No action shall have
been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or 

  

 15 

 
regulatory authority of competent jurisdiction that would, as of the Closing Date, render impossible the issuance or sale of the Securities; and no
injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Securities. 
 6. CONDITIONS TO THE REGULATION D PURCHASERS’ OBLIGATION TO PURCHASE. 
 The several obligations of the
Regulation D Purchasers hereunder to purchase the Securities at the Closing are subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Regulation D
Purchasers’ sole respective benefit and may be waived by the Regulation D Purchasers at any time in their sole discretion (each with respect to itself only) by providing the Company with prior written notice thereof. 
 (a) The Company shall have executed and delivered, or caused to be delivered, to the Regulation D Purchasers or the Placement Agent (i) each of the
Transaction Documents to which it is a party and (ii) the Securities being purchased by the Regulation D Purchasers at the Closing pursuant to this Agreement, in each case in form and substance reasonably satisfactory to the Regulation D
Purchasers or their agents. 
 (b) The Transactions shall have been consummated in accordance with their terms and in accordance with the
applicable Transaction Documents and as described in the COM. 
 (c) [omitted] 
 (d) [omitted] 
 (e) On the Closing Date, the
Regulation D Purchasers or the Placement Agent (on behalf of the Regulation D Purchasers) shall have received the opinions of Akin Gump Strauss Hauer & Feld LLP, U.S. counsel for the Company, dated as of the Closing Date, substantially to
the effect set forth on Annex B. 
 (f) The Company shall have delivered to the Regulation D Purchasers or the Placement Agent (on
behalf of the Regulation D Purchasers) a certificate evidencing qualification by such entity as a foreign corporation and good standing issued by the Secretaries of State (or comparable office) of each of the jurisdictions in which the Company
operates as of a date within 30 days prior to the Closing Date. 
 (g) The Company shall have delivered to the Regulation D Purchasers or the
Placement Agent (on behalf of the Regulation D Purchasers) a certificate, executed by the Secretary of the Company, and dated as of the Closing Date, as to (i) the resolutions consistent with Sections 3(f) and 3(h) as adopted by
Board of Directors of the Company in a form reasonably acceptable to the Regulation D Purchasers, and (ii) the certificate of incorporation and bylaws, or other organizational documents of the Company. 
  

 16 

 (h) The representations and warranties of the Company contained herein shall be true and correct as of
the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and the Company shall have performed, satisfied and complied in all material respects with the
covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Regulation D Purchasers or the Placement Agent (on behalf of the Regulation D Purchasers)
shall have received certificates, executed by an authorized officer of the Company, dated as of the Closing Date, to the foregoing effect. The statements of the Company and its respective officers made in any certificates delivered pursuant to this
Agreement may be made only in their official, rather than individual capacity, and shall be true and correct on and as of the Closing Date. 
 (i) No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority of competent jurisdiction that would, as of the
Closing Date, render impossible the issuance or sale of the Securities; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Securities.

 7. TERMINATION. 
 In
the event that the Closing shall not have occurred due to the failure of the Company or the Regulation D Purchasers to satisfy the conditions set forth in Sections 5 and 6 above (and the nonbreaching party’s failure to waive such
unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on the third business day following the date previously scheduled to be the Closing
Date subject to Section 1(a)(ii). 
 8. INDEMNIFICATION. 
 (i) In consideration of the Regulation D Purchasers’ execution and delivery of this Agreement and the issuance of the Securities, and acquiring the
Securities hereunder and in addition to all of the other obligations of the Company under this Agreement, the Company, shall defend, protect, indemnify and hold harmless the Regulation D Purchasers and the Regulation D Purchasers’ stockholders,
partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons’ agents or other representatives, including, without limitation, those retained in connection with the transactions contemplated
by this Agreement (each, an “Indemnitee” and collectively, the “Indemnitees”), as incurred, from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and
damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the
“Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to any misrepresentation or breach of any representation or warranty made by the Company in this Agreement or any other
certificate, instrument or document contemplated hereby or thereby. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of
each of the Indemnified Liabilities which is permissible under applicable law. 
  

 17 

 (ii) Promptly after receipt by an Indemnitee under this Section 8 of notice of any claim or
the commencement of any action or proceeding (including any governmental investigation), such Indemnitee will, if a claim for indemnification in respect thereof is to be made against the Company, notify the Company in writing of the commencement
thereof; but the omission to so notify will not relieve it from any liability which the Company may have to any Indemnitee to the extent the Company is not materially prejudiced as a result thereof. In case any such action or proceeding is brought
against any Indemnitee, and it notifies the Company of the commencement thereof, the Company will be entitled to participate therein, and to the extent that it may elect, by written notice delivered to such Indemnitee promptly after receiving the
aforesaid notice from such Indemnitee, to assume the defense thereof, with counsel reasonably satisfactory to such Indemnitee; provided, however, that if the defendants (including any impleaded parties) in any such action include both
the Indemnitee and the Company (as applicable) and the Indemnitee shall have reasonably concluded that there may be legal defenses available to it and/or other Indemnitees which are different from or in addition to those available to the Company,
the Indemnitee or Indemnitees shall have the right to select separate counsel to defend such action on behalf of such Indemnitee or Indemnitees. Upon receipt of notice from the Company to such Indemnitee of its election to so appoint counsel to
defend such action and approval by the Indemnitee of such counsel, the Company will not be liable to such Indemnitee under this Section 8 for any legal or other expenses subsequently incurred by such Indemnitee in connection with the
defense thereof unless: (A) the Indemnitee shall have employed separate counsel in accordance with the proviso to the preceding sentence (it being understood, however, that the Company shall not be liable for the expense of more than one
separate counsel, approved by the Indemnitee representing the Indemnitees who are parties to such action); (B) the Company shall not have employed counsel reasonably satisfactory to the Indemnitee to represent the Indemnitee within a reasonable
time after notice or commencement of the action; (C) the Company has authorized the employment of counsel for the Indemnitee at the expense of the Company; or (D) the use of counsel chosen by the Company to represent the Indemnitee would
reasonably be expected to present such counsel with a conflict of interest. 
 (iii) The Company will not without the prior written consent
of the Indemnitees, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not
the Indemnitees are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each Indemnitee from all liability arising out of such claim, action, suit or proceeding and
does not include an admission of guilt of, or failure to act by, the Indemnitee, or include any injunctive relief against any Indemnitee. The Company shall not be liable for any settlement, compromise or the consent to the entry of judgment in
connection with any such action effected without its written consent, but if settled with its written consent or if there be a final judgment for the plaintiff in any such action other than a judgment entered with the consent of such Indemnitee,
then the Company shall indemnify and hold harmless any Indemnitee from and against any loss or liability by reason of such settlement or judgment. 
  

 18 

 (iv) Each Indemnitee shall furnish such information regarding itself or the claim in question as the
Company may reasonably request in writing and as shall be reasonably required in connection with the defense of such claim and litigation arising therefrom. 
 (v) Notwithstanding anything to the contrary herein, the rights and remedies provided in this Section 8 are the sole rights with respect to the transactions contemplated by this Agreement and no party
hereto shall make any other claim for costs, damages, expenses (including fees and expenses of attorneys, consultants, experts or other representatives) or any fine, penalty or any liability of any other nature or otherwise, under, arising out of or
relating to this Agreement, or the transactions contemplated hereby, whether based on contract, tort, strict liability, other laws or otherwise. 
 (vi) Notwithstanding anything to the contrary herein, the provisions of this Section 8 are intended solely for the benefit of the Regulation D Purchasers and not for the benefit of, nor may any provision hereby be enforced by,
any other Person. 
 (vii) No indemnification may be sought under this Section 8 by any Person who would have been entitled to
indemnification under this Section 8 more than two years after the date of this Agreement. 
 9. MISCELLANEOUS.

 (a) Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically
generated and kept on file by the sending party); or (iii) one business day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be: 
 If to the Company: 
 Transmeridian Exploration Incorporated 
 397 N. Sam Houston Pkwy., E. 
 Suite 300 
 Houston, Texas 77060 

Attn: Earl W. McNeil, Chief Financial Officer 
 Copy to: 
 Akin Gump Strauss Hauer & Feld LLP 
 1111 Louisiana Street, 44th Floor 
 Houston, Texas 77002-5200 
 Facsimile: 713-236-0822 
 Attn: James L.
Rice III 
  

 19 

 and if to the Regulation D Purchasers, to the applicable address and facsimile number set forth on Annex A hereto,
or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party prior to the effectiveness of such change. Written confirmation of receipt
(A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of
the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (A),
(B) or (C) above, respectively. 
 (b) Governing Law; Jurisdiction; Jury Trial. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New York. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby may be instituted in the federal courts of the
United States of America located in the Borough of Manhattan in the City of New York or the courts of the State of New York in each case located in the Borough of Manhattan in the City of New York. Each party hereby irrevocably waives, and agrees
not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each
party hereby irrevocably waives any right it may have, and agrees not to request, a jury trial for the adjudication of any dispute hereunder or in connection with or arising out of this Agreement or any transaction contemplated hereby. 

(c) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns; provided that no party shall assign any of its rights or obligations hereunder without the prior written consent of the other party. 
 (d) Survival. Unless this Agreement is terminated under Section 7, the representations and warranties of the parties hereto contained in Sections 2 and 3, respectively, and the
agreements and covenants set forth in Sections 4 and 8 shall survive the Closing. 
 (e) Headings. The headings of this
Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. 
 (f)
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set
forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative means to achieve the same or substantially the same
result as that contemplated by such term, provision, covenant 

  

 20 

 
or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions,
covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 
 (g)
Entire Agreement. The Transaction Documents and the Commitment Letter constitute the entire agreements of the parties to this Agreement and supersede all prior written or oral and all contemporaneous oral agreements, understandings and
negotiations with respect to the subject matter hereof. 
 (h) Amendment. This Agreement may not be amended or modified unless in
writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The failure by any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof. Any amendment to this Agreement made in conformity with the provisions of this Section 8(h) shall be binding on the
Regulation D Purchasers and all holders of the Securities purchased under this Agreement, as applicable. 
 (i) Counterparts. This
Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party;
provided, that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
 (j) Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute
and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions
contemplated hereby. 
 (k) No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their
respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person; provided, however, that the Placement Agent may rely upon Sections 2, 3, and
4 hereof as if such representations, warranties, agreements and covenants, as applicable, were made directly to the Placement Agent. The parties further agree that the Placement Agent may rely on or, if the Placement Agent so requests, be
specifically named as an addressee of, the legal opinions to be delivered pursuant to Section 6(e) of this Agreement. 
 (l)
Independent Nature of Regulation D Purchasers’ Obligations and Rights. The obligations of each Regulation D Purchaser under any Transaction Document are several and not joint with the obligations of any other Regulation D Purchaser, and
no Regulation D Purchaser shall be responsible in any way for the performance of the obligations of any other Regulation D Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken
by any Regulation D Purchaser pursuant hereto or thereto, shall be deemed to constitute the Regulation D Purchasers as, and the Company 

  

 21 

 
acknowledges that the Regulation D Purchasers do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a
presumption that the Regulation D Purchasers are in any way acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents and the
Company acknowledges that the Regulation D Purchasers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The Company acknowledges and each Regulation D Purchaser
confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Regulation D Purchaser shall be entitled to independently protect and enforce its rights,
including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Regulation D Purchaser to be joined as an additional party in any proceeding for such
purpose. 
 (m) Limitation on Duties of Placement Agent; Exculpation. Each party hereto agrees for the express benefit of each of the
Placement Agent, its respective affiliates and its respective representatives that: 
 (i) Neither the Placement Agent, nor any of its
respective affiliates or any of their representatives has any duties or obligations other than those specifically set forth herein. 
 (ii)
Neither the Placement Agent nor any of its respective affiliates or respective representatives (1) shall be liable for any improper payment made in accordance with the information provided by the Company; (2) makes any representation or
warranty, or has any responsibilities, as to the validity, accuracy, value or genuineness of any information, certificates or documentation delivered by or on behalf of the Company pursuant to this Agreement, the Placement Agency Agreement or the
other Transaction Documents or in connection with any of the transactions contemplated hereby or thereby, including any information in the Preliminary COM or the COM or (3) shall be liable (x) for any action taken, suffered or omitted by
any of them in good faith and reasonably believed to be authorized or within the discretion or rights or powers conferred upon it by this Agreement, the Placement Agency Agreement or any other Transaction Document or (y) for anything the
Placement Agent may do or refrain from doing in connection with this Agreement, the Placement Agency Agreement or any other Transaction Document, except for such party’s own gross negligence, willful misconduct or bad faith. 
 (iii) The Placement Agent and its respective affiliates shall be entitled to (1) rely on, and shall be protected in acting upon, any certificate,
instrument, opinion, notice, letter or any other document or security delivered to any of them by or on behalf of the Company, and (2) be indemnified by the Company for acting as Placement Agent pursuant to the indemnification provisions set
forth in the Placement Agency Agreement, which hereby are incorporated by reference herein. 
 [SIGNATURE PAGE FOLLOWS] 
  

 22 

 IN WITNESS WHEREOF, the parties hereto have caused their respective signature page to this Regulation D
Purchase Agreement to be duly executed as of June 26, 2007. 
  

			
	TRANSMERIDIAN EXPLORATION INCORPORATED
		
	 By:
	 	 /s/ Earl W. McNiel

	 Name:
	 	Earl W. McNiel
	 Title:
	 	Vice President

 REGULATION D PURCHASERS 
  

			
	 CAPITAL VENTURES INTERNATIONAL
  
 BY    HEIGHTS CAPITAL MANAGEMENT,
INC., ITS AUTHORIZED AGENT

			
		
	BY	 	/S/ MARTIN KOBINGER
		 	 NAME: MARTIN KOBINGER
 TITLE: INVESTMENT MANAGER

  

			
	LINDEN CAPITAL L.P.
		
	BY	 	/S/ CRAIG JARVIS
		 	 NAME: CRAIG JARVIS
 TITLE: AUTHORIZED SIGNATORY

  

			
	SILVER OAK CAPITAL, L.L.C.
		
	BY	 	/S/ MICHAEL L. GORDON
		 	 NAME: MICHAEL L. GORDON
 TITLE: MANAGING MEMBER

  

			
	INVESTCORP SILVERBACK ARBITRAGE MASTER FUND LIMITED

			
		
	BY	 	/S/ ELLIOT BOSSEN
		 	 NAME: ELLIOT BOSSEN
 TITLE: CIO

  

			
	 RHP MASTER FUND, LTD.
  
 BY    ROCK HILL INVESTMENT
MANAGEMENT, LP
  
 BY    RHP GENERAL PARTNER, LLC

		
	BY	 	/S/ WAYNE BLOCH
		 	 NAME: WAYNE BLOCH
 TITLE: MANAGING PARTNER

			
	 KENMONT SPECIAL OPPORTUNITIES MASTER FUND, L.P.
  
 BY KENMONT INVESTMENTS MANAGEMENT, L.P.

			
		
	BY	 	/S/ JOHN HARKRIDER
		 	 NAME: JOHN HARKRIDER
 TITLE: MANAGING DIRECTOR & CFO

  

			
	 MAN MAC MIESQUE 10B LTD.
  
 BY KENMONT INVESTMENTS MANAGEMENT, L.P.

		
	BY	 	/S/ JOHN HARKRIDER
		 	 NAME: JOHN HARKRIDER
 TITLE: MANAGING DIRECTOR & CFO

  

			
	FURSA MASTER GLOBAL EVENT DRIVEN FUND, LP

			
		
	BY	 	/S/ WILLIAM F. HARLEY III
		 	 NAME: WILLIAM F. HARLEY III
 TITLE: PRESIDENT & CIO

  

			
	WHITEBOX CONVERTIBLE ARBITRAGE PARTNERS, LP

			
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 Title: COO

  

			
	WHITEBOX HEDGED HIGH YIELD PARTNERS, LP

			
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	PANDORA SELECT PARTNERS, LP
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

			
	WHITEBOX INTERMARKET PARTNERS, LP
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	GUGGENHEIM PORTFOLIO CO. XXXI, LLC
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	GPC LIX, LLC
		
	BY	 	/S/ JONATHAN WOOD
		 	 NAME: JONATHAN WOOD
 TITLE: COO

  

			
	BASSO FUND LTD.
		
	BY	 	/S/ HOWARD I. FISCHER
		 	 NAME: HOWARD I. FISCHER
 TITLE: AUTHORIZED SIGNATORY

  

			
	BASSO HOLDINGS LTD.
		
	BY	 	/S/ HOWARD I. FISCHER
		 	 NAME: HOWARD I. FISCHER
 TITLE: AUTHORIZED SIGNATORY

  

			
	BASSO MULTI-STRATEGY HOLDING FUND LTD.

			
		
	BY	 	/S/ HOWARD I. FISCHER
		 	 NAME: HOWARD I. FISCHER
 TITLE: AUTHORIZED SIGNATORY

			
	GREENWICH INVESTMENT PARTNERS, LP
		
	BY	 	/S/ MICHAEL C. ESPOSITO
		 	 NAME: MICHAEL C. ESPOSITO
 TITLE: MEMBER OF GENERAL PARTNER OF GREENWICH INVESTMENT PARTNERS,
LP

  

	
	DR. WOLFGANG RUPF
	
	/S/ DR. WOLFGANG RUPF
	

  

			
	AKV ALTKÖNIG VERWALTUNGS GMBH
		
	BY	 	/S/ MATTHIAS RUPF
		 	 NAME: MATTHIAS RUPF
 TITLE:

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