Document:

Registration Rights Agreement

 Exhibit 10.1 
 Execution Version 
  
 TECO
ENERGY, INC. 
  
 $200,000,000 
  
 6.75% Notes Due 2015 
  
 REGISTRATION RIGHTS AGREEMENT 
  
 May 26, 2005 
 New York, New York 
  
 UBS
Securities LLC 
 As Representative of the several Initial Purchasers 
 c/o UBS Securities LLC 
 299 Park Avenue 
 New York, New
York 10171 
  
 Ladies and Gentlemen: 
  
 TECO Energy, Inc., a Florida corporation (the “Company”),
proposes to issue and sell to UBS Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. Incorporated, BNP Paribas Securities Corp, BNY Capital Markets, Inc. and SG Americas Securities, LLC (the “Initial
Purchasers”), upon the terms set forth in a purchase agreement of even date herewith (the “Purchase Agreement”), an aggregate of U.S. $200,000,000 principal amount of 6.75% Notes due 2015 (the “Initial
Securities”). The Initial Securities will be issued pursuant to an Indenture, dated as of August 17, 1998 (the “Indenture”), among the Company and The Bank of New York, as trustee (the “Trustee”). As an
inducement to the Initial Purchasers to enter into the Purchase Agreement, the Company agrees with the Initial Purchasers, for the benefit of the Initial Purchasers and the holders of the Securities (as defined below) (collectively the
“Holders”), as follows: 
  
 1. Registered
Exchange Offer. Unless not permitted by applicable law, the Company shall prepare and, not later than 90 days (such 90th day being a “Filing Deadline”) after the date on which the Initial Purchasers purchase the Initial
Securities pursuant to the Purchase Agreement (the “Closing Date”), file with the Securities and Exchange Commission (the “Commission”) a registration statement (the “Exchange Offer
Registration Statement”) on an appropriate form under the Securities Act of 1933, as amended (the “Securities Act”), with respect to a proposed offer (the “Registered Exchange Offer”) to the Holders
of Transfer Restricted Securities (as defined in Section 6 hereof), who are not prohibited by any law or policy of the 

 
Commission from participating in the Registered Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Securities, a like
aggregate principal amount of debt securities of the Company issued under the Indenture, identical in all material respects to the Initial Securities and registered under the Securities Act (the “Exchange Securities”). The Company
shall use its reasonable best efforts to (i) cause such Exchange Offer Registration Statement to become effective under the Securities Act as soon as practicable and in any event within 180 days after the Closing Date (such 180th day being an
“Effectiveness Deadline”) and (ii) keep the Exchange Offer Registration Statement effective for not less than 20 business days (or longer, if required by applicable law) after the date notice of the Registered Exchange Offer is
mailed to the Holders (such period being called the “Exchange Offer Registration Period”). 
  
 If the Company commences the Registered Exchange Offer, the Company (i) will be entitled to consummate the Registered Exchange Offer 20 business days
after such commencement (provided that the Company has accepted all the Initial Securities theretofore validly tendered in accordance with the terms of the Registered Exchange Offer) and (ii) will be required to consummate the Registered Exchange
Offer no later than 30 business days after the date on which the Exchange Offer Registration Statement is declared effective (such 30th business day being the “Consummation Deadline”). 
  
 Following the declaration of the effectiveness of the Exchange Offer
Registration Statement, the Company shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities electing to exchange the Initial Securities
for Exchange Securities (assuming that such Holder is not an affiliate of the Company within the meaning of the Securities Act, acquires the Exchange Securities in the ordinary course of such Holder’s business and has no arrangements with any
person to participate in the distribution of the Exchange Securities and is not prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer) to trade such Exchange Securities from and after their receipt
without any limitations or restrictions under the Securities Act and without material restrictions under the securities laws of the several states of the United States. 
  
 The Company, the Initial Purchasers and each Exchanging Dealer (as defined herein) acknowledge that, pursuant to current
interpretations by the Commission’s staff of Section 5 of the Securities Act, in the absence of an applicable exemption therefrom, (i) each Holder that is a broker-dealer electing to exchange Initial Securities, acquired for its own account as
a result of market making activities or other trading activities, for Exchange Securities (an “Exchanging Dealer”), is required to deliver a prospectus containing the information set forth in (a) Annex A hereto on the cover, (b)
Annex B hereto in the “Exchange Offer Procedures” section and the “Purpose of the Exchange Offer” section, and (c) Annex C hereto in the “Plan of Distribution” section of such prospectus in connection with a sale of any
such Exchange Securities received by such Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) if the Initial Purchaser elects to sell Securities (as defined below) acquired in exchange for Initial 

  

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Securities constituting any portion of an unsold allotment, it is required to deliver a prospectus containing the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in connection with such sale. 
  
 The Company shall use its best efforts to keep the Exchange Offer Registration Statement effective and to amend and supplement the prospectus contained therein, in order to permit such prospectus to be lawfully
delivered by all persons subject to the prospectus delivery requirements of the Securities Act for such period of time as such persons must comply with such requirements in order to resell the Exchange Securities; provided, however,
that (i) in the case where such prospectus and any amendment or supplement thereto must be delivered by an Exchanging Dealer or the Initial Purchaser, such period shall be the lesser of 180 days and the date on which all Exchanging Dealers and the
Initial Purchaser have sold all Exchange Securities held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Company shall make such prospectus and any amendment or supplement thereto available to any broker-dealer
for use in connection with any resale of any Exchange Securities for a period of not less than 180 days after the consummation of the Registered Exchange Offer. 
  

If, upon consummation of the Registered Exchange Offer, the Initial Purchasers hold Initial Securities acquired by them as part of their initial
distribution, the Company, simultaneously with the delivery of the Exchange Securities pursuant to the Registered Exchange Offer, shall issue and deliver to the Initial Purchasers upon the written request of the Initial Purchasers, in exchange (the
“Private Exchange”) for the Initial Securities held by the Initial Purchasers, a like principal amount of debt securities of the Company issued under the Indenture and identical in all material respects to the Initial Securities
(the “Private Exchange Securities”). The Initial Securities, the Exchange Securities and the Private Exchange Securities are herein collectively called the “Securities”. 
  
 In connection with the Registered Exchange Offer, the Company shall:

  
 (a) mail to each Holder a copy of the
prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents; 
  
 (b) keep the Registered Exchange Offer open for not less than 20 business days (or longer, if required by applicable law) after the date
notice thereof is mailed to the Holders; 
  
 (c)
utilize the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan, The City of New York, which may be the Trustee or an affiliate of the Trustee; 
  

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 (d) permit Holders to withdraw tendered Securities at any time prior to the close of
business, New York time, on the last business day on which the Registered Exchange Offer shall remain open; and 
  
 (e) otherwise comply with all laws applicable to the Registered Exchange Offer. 
  
 As soon as practicable after the close of the Registered Exchange Offer or
the Private Exchange, as the case may be, the Company shall: 
  
 (x) accept for exchange all the Securities validly tendered and not withdrawn pursuant to the Registered Exchange Offer and the Private Exchange; 
  
 (y) deliver to the Trustee for cancellation all the Initial Securities so accepted for exchange; and

  
 (z) cause the Trustee to authenticate and
deliver promptly to each Holder of the Initial Securities, Exchange Securities or Private Exchange Securities, as the case may be, equal in principal amount to the Initial Securities of such Holder so accepted for exchange. 
  
 The Indenture will provide that the Exchange Securities will not be subject
to the transfer restrictions set forth in the Indenture and that all the Securities will vote and consent together on all matters as one class and that none of the Securities will have the right to vote or consent as a class separate from one
another on any matter. 
  
 Interest on each Exchange Security and
Private Exchange Security issued pursuant to the Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment date on which interest was paid on the Initial Securities surrendered in exchange therefor or, if no
interest has been paid on the Initial Securities, from the date of original issue of the Initial Securities. 
  
 Each Holder participating in the Registered Exchange Offer shall be required to represent to the Company that at the time of the consummation of the
Registered Exchange Offer (i) any Exchange Securities received by such Holder will be acquired in the ordinary course of business, (ii) such Holder will have no arrangements or understanding with any person to participate in the distribution of the
Securities or the Exchange Securities within the meaning of the Securities Act, (iii) such Holder is not an “affiliate,” as defined in Rule 405 of the Securities Act, of the Company or if it is an affiliate, such Holder will comply with
the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not a broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the Exchange
Securities and (v) if such Holder is a broker-dealer, that it will receive Exchange Securities for its own account in exchange for Initial Securities that were acquired as a result of market-making activities or other trading activities and that it
will be required to acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Securities. 
  

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 Notwithstanding any other provisions hereof, the Company will ensure that (i) any Exchange Offer
Registration Statement and any amendment thereto and any prospectus forming part thereof and any supplement thereto complies in all material respects with the Securities Act and the rules and regulations thereunder, (ii) any Exchange Offer
Registration Statement and any amendment thereto does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and any supplement to such prospectus, does not include an 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 the light of the circumstances under which they were made, not misleading. 
  
 2. Shelf Registration. If, (i) because of any change in law or in applicable interpretations thereof by the staff of the Commission, the Company is
not permitted to effect a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) any Holder of Transfer Restricted Securities notifies the Company prior to the 20th business day following the consummation of the Registered Exchange Offer that (A) it is prohibited by law or policy of the Commission from participating in
the Registered Exchange Offer, (B) it may not resell the Exchange Securities acquired by it in the Registered Exchange Offer to the public without delivering a prospectus and the prospectus contained in the Exchange Offer Registration Statement is
not appropriate or available for such resale or (C) that is a broker-dealer and owns Securities acquired directly from the Company or an affiliate of the Company, or (iii) the Initial Purchasers so request with respect to the Initial Securities (or
the Private Exchange Securities) not eligible to be exchanged for Exchange Securities in the Registered Exchange Offer and held by it following consummation of the Registered Exchange Offer, the Company shall take the following actions (the date on
which any of the conditions described in the foregoing clauses (i) through (iii) occur, including in the case of clauses (iii) or (iii) the receipt of the required notice, being a “Trigger Date”): 
  
 (a) The Company shall promptly (but in no event more than 90
days after the Trigger Date (such 90th day being a “Filing Deadline”)) file with the Commission and thereafter use its best efforts to cause to be declared effective as soon as practicable and in any event no later than 120 days
after the Trigger Date (such 120th day being an “Effectiveness Deadline”) a registration statement (the “Shelf Registration Statement” and, together with the Exchange Offer Registration Statement, a
“Registration Statement”) on an appropriate form under 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 set forth in the Shelf Registration Statement and Rule 415 under the Securities Act (hereinafter, the “Shelf Registration”); provided, 
  

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 however, that no Holder (other than the Initial Purchaser) 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. 
  
 (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, for a period of two years (or for such longer period if extended pursuant to Section 3(j) below) from the date of its
effectiveness or such shorter period that will terminate when all the Securities covered by the Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are no longer restricted securities (as defined in Rule 144 under the Securities
Act, or any successor rule thereof) (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 requisite 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 or otherwise permitted hereunder.

  
 (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) other than with respect to information included therein in reliance upon and in conformity with
written information furnished to the Company by or on behalf of any Holder specifically for use therein (the “Holders’ Information”), 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 the case of the prospectus, in light of the circumstances under which they were made) not misleading. 
  
 3. Registration Procedures. In connection with any Shelf Registration
contemplated by Section 2 hereof and, to the extent applicable, any Registered Exchange Offer contemplated by Section 1 hereof, the following provisions shall apply: 
  
 (a) The Company shall (i) furnish to the Initial Purchasers, prior to the filing thereof with the
Commission, a copy of the Registration Statement and each amendment thereof and each supplement, if any, to the prospectus included therein and, in the event that the Initial Purchasers (with respect to any portion of an unsold allotment from the
original offering) are participating in the Registered Exchange Offer or the Shelf Registration Statement, the Company shall use its reasonable best efforts to reflect in each such document, when so filed with the Commission, such comments as the
Initial Purchasers reasonably may propose; (ii) include the information set forth in Annex A hereto on the cover, in Annex B 

  

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hereto in the “Exchange Offer Procedures” section and the “Purpose of the Exchange Offer” section and in Annex C hereto in the “Plan
of Distribution” section of the prospectus forming a part of the Exchange Offer Registration Statement and include the information set forth in Annex D hereto in the Letter of Transmittal delivered pursuant to the Registered Exchange Offer;
(iii) if requested by the Initial Purchasers, include the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in the prospectus forming a part of the Exchange Offer Registration Statement; (iv) include
within the prospectus contained in the Exchange Offer Registration Statement a section entitled “Plan of Distribution,” reasonably acceptable to the Initial Purchasers, which shall contain a summary statement of the positions taken or
policies made by the staff of the Commission with respect to the potential “underwriter” status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) of Exchange Securities received by such broker-dealer in the Registered Exchange Offer (a “Participating Broker-Dealer”), whether such positions or policies have been publicly disseminated by the
staff of the Commission or such positions or policies, in the reasonable judgment of the Initial Purchasers based upon advice of counsel (which may be in-house counsel), represent the prevailing views of the staff of the Commission; and (v) in the
case of a Shelf Registration Statement, include the names of the Holders who propose to sell Securities pursuant to the Shelf Registration Statement as selling securityholders. 
  
 (b) The Company shall give written notice to the Initial Purchasers when the Registration Statement or any
amendment thereto has been filed with the Commission and shall give written notice to the Initial Purchasers and (i) in the case of the Shelf Registration Statement the Holders of the Securities covered thereby or (ii) in the case of the Exchange
Offer Registration Statement, the holders of the Initial Securities and any Participating Broker-Dealer from whom the Company has received prior written notice that it will be a Participating Broker-Dealer in the Registered Exchange Offer (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 Registration Statement or any post-effective amendment thereto has become effective;

  
 (ii) of any request by the Commission for
amendments or supplements to the 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 Registration Statement or the initiation of
any proceedings for that purpose; 
  

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 (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 Registration Statement or the prospectus in order
that the 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 the case of the prospectus, 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 Registration Statement. 
  
 (d) The Company shall furnish to each Holder of Securities
included within the coverage of the Shelf Registration, without charge, at least one copy of the Shelf Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in
writing, all exhibits thereto (including those, if any, incorporated by reference). 
  
 (e) The Company shall deliver to each Exchanging Dealer and the Initial Purchasers, and to any other Holder who so requests, without
charge, at least one copy of the Exchange Offer Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if any Initial Purchaser or any such Holder requests, all exhibits thereto (including
those incorporated by reference). 
  
 (f) The
Company shall, during the Shelf Registration Period, deliver to each Holder of Securities included within the coverage of the Shelf Registration, without charge, as many copies of the prospectus (including each preliminary prospectus) 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 of the Securities in connection with the offering and sale of the Securities covered by the prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 
  
 (g) The Company shall deliver to the Initial Purchasers, any
Exchanging Dealer, any Participating Broker-Dealer and such other persons required to deliver a prospectus following the Registered Exchange Offer, without charge, as many copies of the final prospectus included in the Exchange Offer Registration
Statement and any amendment or supplement thereto as such persons 
  

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 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 the Initial Purchasers, if necessary, any Participating Broker-Dealer and such other persons required to deliver a prospectus following the Registered Exchange Offer in connection with the
offering and sale of the Exchange Securities covered by the prospectus, or any amendment or supplement thereto, included in such Exchange Offer Registration Statement. 
  
 (h) Prior to any public offering of the Securities pursuant to any Registration Statement the Company shall
register or qualify or cooperate with the Holders of the 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 of the Securities 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
such 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. 
  
 (i) The Company shall cooperate with the Holders of the Securities to facilitate the timely preparation and delivery of certificates
representing the Securities to be sold pursuant to any 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 such Registration Statement. 
  
 (j) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 3(b) above during the period for which the Company is required to maintain an effective Registration Statement, the Company shall promptly prepare
and file a post-effective amendment to the 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
(other than the Holders’ Information) 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 the case of the prospectus, in light
of the circumstances under which they were made) not misleading; provided, however, that the Company may delay filing and distributing any such supplement or amendment if there is a possible acquisition or business combination or other
transaction involving the Company that would require disclosure in the Registration Statement or the related prospectus, and the Company determines in the exercise of its reasonable judgment that such disclosure is not in the best interest of the
Company and its stockholders at such time; and provided, further, that the Company will not be entitled to delay filing or distributing any such supplement or amendment for more than thirty (30) days 
  

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 (whether or not consecutive) in any period of three (3) consecutive months or more than ninety (90) days
for all such periods in any period of twelve (12) consecutive months. If the Company notifies the Initial Purchasers, the Holders of the Securities and any known Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of Section
3(b) above to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Initial Purchasers, the Holders of the Securities and any such Participating Broker-Dealers shall suspend use of such prospectus
and discontinue disposition of such Securities until such Holder’s receipt of copies of the supplemental or amended prospectus or until advised in writing by the Company that use of the applicable prospectus may be resumed, and the period of
effectiveness of the Shelf Registration Statement provided for in Section 2(b) above and the Exchange Offer Registration Statement provided for in Section 1 above shall each be extended by the number of days from and including the date of the giving
of such notice to and including the date when the Initial Purchasers, the Holders of the Securities and any known Participating Broker-Dealer shall have received such amended or supplemented prospectus or authorization to resume use of the
applicable prospectus pursuant to this Section 3(j); provided, however, that such period of effectiveness including any such extension shall not exceed the holding period applicable to Rule 144(k) of the Securities Act or any
substitution or modification thereof. 
  
 (k) Not
later than the effective date of the applicable Registration Statement, the Company will provide a CUSIP number for the Initial Securities, the Exchange Securities or the Private Exchange Securities, as the case may be, and provide the applicable
trustee with printed certificates for the Initial Securities, the Exchange Securities or the Private Exchange Securities, as the case may be, in a form eligible for deposit with The Depository Trust Company. 
  
 (l) The Company will comply with all rules and regulations
of the Commission to the extent and so long as they are applicable to the Registered Exchange Offer or 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 Registration Statement, which statement shall cover such 12-month period. 
  
 (m) The Company shall cause the Indenture to be qualified under the Trust Indenture Act of 1939, as amended, in a timely manner and
containing such changes, if any, as shall be necessary for such qualification. In the event that such qualification would require the appointment of a new trustee under the Indenture, the Company shall appoint a new trustee thereunder pursuant to
the applicable provisions of the Indenture. 
  

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 (n) The Company may require each Holder of Securities to be sold pursuant to the Shelf
Registration Statement to furnish to the Company such information regarding the Holder and the distribution of the Securities as the Company may from time 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 unreasonably fails to furnish such information within a reasonable time after receiving such request. 
  
 (o) The Company shall enter into such customary agreements (including, if requested, an underwriting
agreement in customary form) 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. 
  
 (p) 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 4 hereof; and, provided further, that such persons shall maintain in confidence and use solely for the
purposes of exercising their rights under this Agreement any information that is reasonably and in good faith designated by the Company as confidential at the time of delivery of such information, until such time as (i) disclosure of such
information is required by court or administrative order or is necessary to respond to inquiries of regulatory authorities, (ii) disclosure of such information is required by law (including any disclosure requirements pursuant to federal securities
laws in connection with the filing of any Registration Statement or the use of any prospectus referred to in this Agreement), (iii) such information becomes generally available to the public other than as a result of a disclosure or failure to
safeguard by such person, or (iv) such information becomes available to such person from a source other than the Company and, to the knowledge of such person after reasonable inquiry, such source is not bound by a confidentiality agreement.

  
 (q) In the case of any Shelf Registration,
the Company, if requested by Holders of a majority in aggregate principal amount of Securities covered thereby, 

  

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their counsel or managing underwriter, if any, shall cause its counsel to deliver opinions and updates thereof relating to the Securities reasonably
acceptable and in customary form addressed to such Holders and the managing underwriters, if any, thereof and dated, in the case of the initial opinion, the effective date of such Shelf Registration Statement; (ii) its officers to execute and
deliver all customary documents and certificates and updates thereof requested by any underwriters of the applicable Securities; and (ii) its independent public accountants to provide to the selling Holders of the applicable Securities and any
underwriter therefor a comfort letter and updates thereof 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. 
  
 (r) In the case of the Registered Exchange Offer, if requested by the Initial Purchaser or any known Participating Broker-Dealer, the
Company shall cause (i) its counsel to deliver to the Initial Purchasers or such Participating Broker-Dealer signed opinions in the form set forth in Section 6(c) and 6(d) of the Purchase Agreement with such changes as are customary in connection
with the preparation of a Registration Statement and (ii) its independent public accountants to deliver to the Initial Purchaser or such Participating Broker-Dealer a comfort letter, in customary form, meeting the requirements as to the substance
thereof as set forth in Section 6(a) of the Purchase Agreement, with appropriate date changes. 
  
 (s) If a Registered Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Initial Securities by Holders to the
Company (or to such other Person as directed by the Company) in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be, the Company shall mark, or cause to be marked, on the Initial Securities so exchanged that
such Initial Securities are being canceled in exchange for the Exchange Securities or the Private Exchange Securities, as the case may be; in no event shall the Initial Securities be marked as paid or otherwise satisfied. 
  
 (t) In the event that any broker-dealer registered under the
Exchange Act shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the Conduct Rules (the “Rules”) of the National
Association of Securities Dealers, Inc. (“NASD”)) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Company will assist such
broker-dealer in complying with the requirements of such Rules, including, without limitation, by (i) if such Rules, including Rule 2720, shall so require, engaging a “qualified independent underwriter” (as defined in Rule 2720) to
participate in the preparation of the Registration Statement relating to such Securities, to exercise usual standards of due diligence in respect thereto and, if any portion of the offering contemplated by such Registration Statement is an
underwritten offering or is made through a 

  

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placement or sales agent, to recommend the yield of such Securities, (ii) indemnifying any such qualified independent underwriter to the extent of the
indemnification of underwriters provided in Section 5 hereof and (iii) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Rules. 
  
 (u) The Company shall use its reasonable best efforts to
take all other steps necessary to effect the registration of the Securities covered by a Registration Statement contemplated hereby. 
  
 4. Registration Expenses. 
  
 (a) All expenses incident to the Company’s performance of and compliance with this Agreement will be borne by the Company, regardless
of whether a 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 for the Securities to be issued in the Registered Exchange Offer and the Private Exchange and printing of prospectuses), messenger and delivery services and telephone; 
  
 (iv) all fees and disbursements of counsel for the Company;

  
 (v) all application and filing fees in
connection with listing the Exchange Securities 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). 
  
 Notwithstanding the foregoing, in no event shall the Company be responsible for underwriting discounts or commissions or brokerage fees or commissions incurred by the selling Holders in connection with a Shelf Registration Statement. 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. The Holders participating in any underwritten offering shall be responsible for any underwriting discounts and commissions and fees and expenses of counsel to the managing underwriters and the
selling securityholders to the extent not required to be paid by the Company pursuant to this Section 4. 
  

 -13- 

 (b) In connection with any Registration Statement required by this Agreement, the Company
will reimburse the Initial Purchasers and the Holders of Transfer Restricted Securities who are tendering Initial Securities in the Registered Exchange Offer and/or selling or reselling Securities pursuant to the “Plan of Distribution”
contained in the Exchange Offer Registration Statement or the Shelf Registration Statement, as applicable, for the reasonable fees and disbursements of not more than one counsel, who shall be Ropes & Gray LLP unless another firm shall be chosen
by the Holders of a majority in principal amount of the Transfer Restricted Securities for whose benefit such Registration Statement is being prepared. 
  
 5. Indemnification. 
  
 (a) The Company agrees to indemnify and hold harmless each Holder of the Securities, any Participating Broker-Dealer and each person, if
any, who controls such Holder or such Participating Broker-Dealer within the meaning of the Securities Act or the Exchange Act (each Holder, any Participating Broker-Dealer and such controlling persons are referred to collectively as the
“Indemnified Parties”) 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 Party 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 Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration, or arise out
of, or are based upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and shall reimburse, as incurred, the Indemnified Parties 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 in any
such case to the extent that such loss, claim, damage or liability arises out of or is based upon (A) any untrue statement or alleged untrue statement or omission or alleged omission made in a 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 or (B) any offer or sale of Securities covered by any Registration statement during a 30 day or 90 day period referenced in Section 3(j) hereof of which the Holder has received written notice and (ii) with 

  

 -14- 

 
respect to any untrue statement or omission or alleged untrue statement or omission made in any preliminary prospectus relating to a Shelf Registration
Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder or Participating Broker-Dealer 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 or Participating Broker-Dealer under the Securities Act in connection with such purchase and any such loss, claim, damage or liability
of such Holder or Participating Broker-Dealer 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 such loss,
claim, damage or liability is determined by a court of competent jurisdiction to arise out of an untrue statement or omission that was corrected in the final prospectus and the Company had previously furnished sufficient copies thereof to such
Holder or Participating Broker-Dealer in sufficient time to enable such Holder or Participating Broker-Dealer to deliver to such person such prospectus; provided further, however, that this indemnity agreement will be in
addition to any liability which the Company may otherwise have to such Indemnified Party. The Company shall also indemnify underwriters, their officers and directors and each person who controls such underwriters within the meaning of the Securities
Act or the Exchange Act to the same extent as provided above with respect to the indemnification of the Holders of the Securities if requested by such Holders. 
  

(b) Each Holder of the Securities, severally and not jointly, will indemnify and hold harmless the Company and each person, if any, who
controls the Company 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 controlling 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 Registration
Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration, 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 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; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Company for any legal or other
expenses reasonably incurred by the Company or any such controlling person in connection with investigating or defending any loss, claim, damage, liability or action in respect thereof. This indemnity agreement will be in addition to any liability
which such Holder may otherwise have to the Company or any of its controlling persons. 
  

 -15- 

 (c) Promptly after receipt by an indemnified party under this Section 5 of notice of the
commencement of any action or proceeding (including a governmental investigation), such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party of the
commencement thereof; but the omission so to notify the indemnifying party will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or
(b) above. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof the indemnifying party will not be liable to such indemnified party under this Section 5 for any legal or
other expenses, other than reasonable costs of investigation, subsequently incurred by such indemnified party in connection with the defense thereof. No indemnifying party shall, without the prior written consent of the indemnified party, effect any
settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement (i) includes an unconditional
release of such indemnified party 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
party. 
  
 (d) If the indemnification provided
for in this Section 5 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party 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 party or parties on the one hand and the
indemnified party 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 party, as the case may be, on the other, and the parties’ relative intent, knowledge, access to information and opportunity to correct or 

  

 -16- 

 
prevent such statement or omission. The amount paid by an indemnified party 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 party 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 5(d), the Holders of the Securities shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the sale of the Securities
pursuant to a Registration Statement exceeds the amount of damages which such Holders 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 party within the meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such indemnified party 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 agreements contained in this Section 5 shall survive the sale of the Securities pursuant to a 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. 
  
 6. Additional Payments Under Certain Circumstances. 
  
 (a) Additional payment (the “Additional Payments”) with respect to the Transfer
Restricted Securities shall be assessed as follows if any of the following events occur (each such event in clauses (i) through (iv) below being herein called a “Registration Default”): 
  
 (i) any Registration Statement required by this Agreement is
not filed with the Commission on or prior to the applicable Filing Deadline; 
  
 (ii) any Registration Statement required by this Agreement is not declared effective by the Commission on or prior to the applicable Effectiveness Deadline; 
  
 (iii) the Registered Exchange Offer has not been consummated
on or prior to the Consummation Deadline; or 
  
 (iv) any Registration Statement required by this Agreement has been declared effective by the Commission but (A) such Registration Statement thereafter ceases to be effective or (B) such Registration 

  

 -17- 

 
Statement or the related prospectus ceases to be usable (except as permitted in paragraph (b)) in connection with resales of Transfer Restricted Securities
during the periods specified herein because either (1) any event occurs as a result of which the related prospectus forming part of such Registration Statement would include any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein in the light of the circumstances under which they were made not misleading, or (2) it shall be necessary to amend such Registration Statement or supplement the related prospectus, to comply with the
Securities Act or the Exchange Act or the respective rules thereunder. 
  
 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 Payment shall
accrue on the Transfer Restricted Securities over and above the interest set forth in the title of the Transfer Restricted Securities 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 0.25% per annum (the “Additional Payment Rate”) for the first 90-day period immediately following the occurrence of such Registration Default. The Additional Payment Rate
shall increase by an additional 0.25% per annum with respect to each subsequent 90-day period until all Registration Defaults have been cured, up to a maximum Additional Payment Rate of 1.0% per annum. 
  
 (b) A Registration Default referred to in Section 6(a)(iv)
hereof shall be deemed not to have occurred and be continuing in relation to a Shelf Registration Statement or the related prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a post-effective amendment to
such 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 or (y) other material events, with respect to the Company that would need to be described in such Shelf Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is either proceeding promptly and in
good faith to amend or supplement such Shelf Registration Statement and related prospectus to describe such events or the Company has delayed filing and distributing such amendment or supplement pursuant to the first and second provisos of the first
sentence of Section 3(j) of this Agreement; provided, however, that in any case if such Registration Default occurs for a continuous period in excess of 30 days, Additional Payments shall be payable in accordance with the above
paragraph from the day such Registration Default occurs until such Registration Default is cured. 
  

 -18- 

 (c) Any amounts of Additional Payments due pursuant to Section 6(a) will be payable in
cash on the regular interest payment dates with respect to the Transfer Restricted Securities. The amount of Additional Payments will be determined by multiplying the applicable Additional Payment Rate by the principal amount of the Transfer
Restricted Securities and further multiplied by a fraction, the numerator of which is the number of days such Additional Payment Rate was applicable during such period (determined on the basis of a 360-day year comprised of twelve 30-day months),
and the denominator of which is 360. 
  
 (d)
“Transfer Restricted Securities” means each Security until (i) the date on which such Security has been exchanged by a person other than a broker-dealer for a freely transferable Exchange Security in the Registered Exchange Offer,
(ii) following the exchange by a broker-dealer in the Registered Exchange Offer of an Initial Security for an Exchange Security, the date on which such Exchange Security is sold to a purchaser who receives from such broker-dealer on or prior to the
date of such sale a copy of the prospectus contained in the Exchange Offer Registration Statement, (iii) the date on which such Security has been effectively registered under the Securities Act and disposed of in accordance with the Shelf
Registration Statement or (iv) 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. 
  
 7. Rules 144 and 144A. The Company shall use its reasonable best
efforts to 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 the Company is not required to file such reports, it will, upon the request of any Holder of Transfer
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 Initial Securities identified to the Company by the Initial Purchasers upon request. Upon the request
of any Holder of Initial Securities, the Company shall deliver to such Holder a written statement as to whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Company
to register any of its securities pursuant to the Exchange Act. 
  
 8. Underwritten Registrations. If any of the Transfer Restricted Securities covered by any Shelf Registration are to be sold in an underwritten offering, 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 aggregate principal amount of such Transfer Restricted Securities to be included in such offering, subject to the approval of the
Company (which shall not be unreasonably withheld) and provided that at least 10% of the outstanding Transfer Restricted Securities are included in such underwritten offering. The Company shall not be obligated to arrange for more than two
underwritten offerings during the Shelf Registration Period. 
  

 -19- 

 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. 
  
 9. Miscellaneous. 
  
 (a) Remedies. The Company acknowledges and agrees that any failure by the Company to comply with its obligations under Section 1
and 2 hereof may result in material irreparable 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, the Initial Purchasers or any Holder may obtain such relief as may be required to specifically enforce the Company’s obligations under Sections 1 and 2 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 principal amount of the Securities affected by such amendment, modification, supplement, waiver or consents. Without the consent of the Holder of each Security, however, no modification may change the provisions relating to
the payment of Additional Interest. 
  
 (d)
Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand delivery, first-class mail, facsimile transmission, or air courier which guarantees overnight delivery: 
  
 (1) if to a Holder of the Securities, at the most current
address given by such Holder to the Company. 
  

 -20- 

 (2) if to the Initial Purchasers; 
  
 UBS Securities LLC 
 677 Washington Boulevard 
 Stamford, CT
06901 
 Fax number: (203) 719-0680 
 Attention: High Yield Capital Markets 
  
 With a copy
at such address to the attention of Legal Department, 
 fax number (203) 719-6177 
  
 with a copy to: 
  
 Ropes & Gray LLP 
 One International Place 
 Boston, MA 02110

 Fax No.: (617) 951-7050 
 Attention: David A. Fine 
  
 (3) if to the Company, at
its address as follows: 
  
 TECO Energy, Inc. 
 702 North Franklin Street 
 Tampa, FL 33602

 Attention: Corporate Secretary 
  
 with a copy to: 
  
 Palmer & Dodge LLP 
 111 Huntington
Avenue 
 Boston, MA 02199-4111 
 Attention: Stanley Keller 
  
 All such notices and
communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three 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; 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. 
  

 -21- 

 (f) Successors and Assigns. This Agreement shall be binding upon the Company and
its successors and assigns. 
  
 (g)
Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, 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. 
  
 (j) Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held 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. 
  
 (k) Securities Held by the Company. Whenever the consent or approval of Holders of a specified percentage of principal amount of
Securities is required hereunder, Securities held by the Company or its affiliates (other than subsequent Holders of Securities if such subsequent Holders are 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) Submission to Jurisdiction; Waiver of Jury Trial.. The Company hereby submits to the non-exclusive jurisdiction of the federal
and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. Each of the parties hereto hereby waives all right to trial by jury
in any proceeding (whether based upon contract, tort or otherwise) in any way arising out of or relating to this Agreement. Each of the Parties hereto agrees that a final judgment in any such proceeding brought in any such court shall be conclusive
and binding upon such party and may be enforced in any other courts in the jurisdiction of which such party is or may be subject, by suit upon such judgment. 
  

 -22- 

 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 between the Initial Purchasers and the Company in accordance with its terms. 
  

			
	 Very truly yours,

	
	 TECO ENERGY, INC.

		
	 By
	 	 /s/ S.W. Callahan

	 Name:
	 	 Sandra W. Callahan

	 Title:
	 	 Vice President – Treasury and Risk

	 	 	 Management (Treasurer)

  
 The foregoing Registration

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

			
	 By:
	 	 UBS SECURITIES LLC

	 	 	 As Representative of the several Initial Purchasers

		
	 By:
	 	 /s/ Antero Carrillo

	 Name:
	 	 Antero Carrillo

	 Title:
	 	 Associate Director

		
	 By:
	 	 /s/ Jamie Brodsky

	 Name:
	 	 Jamie Brodsky

	 Title:
	 	 Associate Director

 ANNEX A 
  
 Each broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning
of the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities received in exchange for Initial Securities where such Initial
Securities were acquired by such broker-dealer as a result of market-making activities or other trading activities. The Company has agreed that, for a period of 180 days after the Expiration Date (as defined herein), it will make this Prospectus
available to any broker-dealer for use in connection with any such resale. See “Plan of Distribution.” 

 ANNEX B 
  
 Each broker-dealer that receives Exchange Securities for its own account in exchange for Initial Securities, where such Initial Securities were acquired
by such broker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution.”

 ANNEX C 
  
 PLAN OF DISTRIBUTION 
  
 Each broker-dealer that receives Exchange Securities for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus
in connection with any resale of such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities received in exchange for Initial
Securities where such Initial Securities were acquired as a result of market-making activities or other trading activities. The Company has agreed that, for a period of 180 days after the Expiration Date, it will make this prospectus, as amended or
supplemented, available to any broker-dealer for use in connection with any such resale. In addition, until , 200 , all dealers effecting transactions in the Exchange Securities may be required to deliver a prospectus.(1) 
  
 The Company will not receive any proceeds from any sale of Exchange Securities by broker-dealers. Exchange Securities received by broker-dealers for their
own account pursuant to the Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the Exchange Securities or a combination of such
methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive
compensation in the form of commissions or concessions from any such broker-dealer or the purchasers of any such Exchange Securities. Any broker-dealer that resells Exchange Securities that were received by it for its own account pursuant to the
Exchange Offer and any broker or dealer that participates in a distribution of such Exchange Securities may be deemed to be an “underwriter” within the meaning of the Securities Act and any profit on any such resale of Exchange Securities
and any commission or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act. 
  
 For a period of 180 days after the Expiration Date the Company will promptly send additional copies of this Prospectus and any amendment or supplement to
this 
  

	(1)	In addition, the legend, if any, required by Item 502(b) of Regulation S-K will appear on the
inside front cover page of the Exchange Offer prospectus below the Table of Contents. 

 Prospectus to any broker-dealer that requests such documents in the Letter of Transmittal. The Company has agreed to pay
all expenses incident to the Exchange Offer (including the expenses of one counsel for the Holders of the Securities) other than commissions or concessions of any brokers or dealers and will indemnify the Holders of the Securities (including any
broker-dealers) against certain liabilities, including liabilities under the Securities Act. 

 ANNEX D 
  
 [    ] CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS
THERETO. 
  

	
	 Name:_____________________________________

	 Address:___________________________________

  
 If the undersigned is not a
broker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a broker-dealer that will receive Exchange Securities for its own account in exchange
for Initial Securities that were acquired as a result of market-making activities or other trading activities, it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange Securities; however, by so acknowledging
and by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.Valle Lunar Technical Evaluation Agreement

 Exhibit 10.1 
  
 TECHNICAL EVALUATION AGREEMENT AREA VALLE LUNAR 
  Page
 1
 of 27 
  

 Agencia Nacional de Hidrocarburos 
 TECHNICAL EVALUATION AGREEMENT 
  

			
	 AREA:
	  	VALLE LUNAR
	 EVALUATOR:
	  	HARKEN DE COLOMBIA LIMITED
	 EFFECTIVE DATE:
	  	MAY 27th 2005

  
 The Contracting parties namely: on the
one hand, Agencia Nacional de Hidrocarburos hereinafter ANH, a special administrative unit attaché to the Ministry of Mines and Energy, created by the Decree 1760 of 26 June 2003, with registered offices in Bogotá, represented
by JOSÉ ARMANDO ZAMORA REYES, of legal age, bearer of the Citizenship ID No. 19.303.017 issued in Bogotá D.C., domiciled in Bogotá, who states: 1. That he is acting in his capacity as General Director of ANH, on
behalf of this Agency, and 2. That he has been authorized by the Board of Directors of ANH to execute this Contract, as evidenced in Minutes No. 027 date February 07, 2005, and, for the other Party HARKEN DE COLOMBIA LIMITED, a
company incorporated in accordance with the laws of Cayman Islands, with registered offices in Cayman Islands, and a branch established in Colombia, and registered offices in Bogotá, in accordance with public deed No. 406, dated February 19,
1993 granted by Notary 11 of Bogotá, represented by GUILLERMO SANCHEZ, American, of legal age, with Passport No. 132457597 who states that: 1. in his capacity as legal representative he acts in representation of HARKEN DE COLOMBIA,
LIMITED. 2. He is fully authorized to execute this Contract, as evidenced in the Incumbency Certificate issued by the Bogotá Chamber of Commerce 3. He states under oath that he is not in any way disqualified to enter into this
Contract, and 4. HARKEN DE COLOMBIA LIMITED has accredited that it has, and undertakes to maintain, the financial capacity, the technical competence, and the professional skills required to undertake activities under this Contract. The above
company shall be known for all purposes under this Contract as THE EVALUATOR. 
  
 Note: If THE EVALUATOR does not have a branch office in Colombia at the time of execution of this Contract, the following text shall be included: “As a resolutory condition of this Contract, THE
EVALUATOR undertakes to establish a branch in Colombia, with registered offices in Bogotá, within sixty Calendar Days as of the execution of this contract”. 

 TECHNICAL EVALUATION AGREEMENT AREA VALLE LUNAR 
  Page
 2
 of 27 
  

 ANH and THE EVALUATOR leave record that they have entered into the Contract contained in the following
Clauses: 
  
 CLAUSE 1 – DEFINITIONS 
  
 For the purposes of this Contract, the terms set forth below shall be defined as follows:

  
 1.1. Technical Evaluation Area or Area: It is the surface identified in
Clause 3 whose boundaries are shown in Appendix A, in which THE EVALUATOR is authorized to execute Technical Evaluation Operations. 
  
 1.2. Good Practices in the Oil Industry: These are good, safe and efficient operations and procedures, commonly used by prudent and diligent operators in
international oil industry, under conditions and circumstances similar to those arising in the course of activities under this Contract, mainly in matters associated with the use of appropriate methods and processes for the surface exploration of
the Technical Evaluation Area, the operational security and protection to Environment, amongst others, as long as that they are not contrary to Colombian law. 
  

1.3. Right of Priority: It is the right exclusively held by THE EVALUATOR during the term of this contract and two additional months under the terms
provided in Clause 6 (paragraph 6.4) hereunder. 
  
 1.4. Effective Date: It
is the date of signature of this contract provided that on such date THE EVALUATOR has been delivered the eighty per cent (80%) of the technical information requested and available. In the event that on the date of signature of this contract
the above mentioned percentage of technical information has not been delivered, the effective date shall be the date of delivery of such information. 
  
 1.5. Technical Information: It is the geological and geophysical information of the Area, held by ANH and available before the commencement of the
Operations, including but not limited to, seismic data, information on potential methods, remote sensors and geochemical data duly supported, surface and subsoil cartography, data on wells, electric records, formation tests, biostratigraphic,
petrophysical and fluid analysis and production history.  
  
 1.6.
Technical Evaluation Operations, Operation or Operations: These are all those studies and works executed by THE EVALUATOR in the Technical Evaluation Area to evaluate its hydrocarbon potential and to identify the areas with the most
prospective interest, including but not limited to, geophysical, geochemical, geological, cartographic, photo-geological methods and, in general, all surface prospecting activities, drilling with rig or similar equipment provided that these are
exclusively stratigraphic research wells which purpose is to obtain geological stratigraphic information on the of the Technical Evaluation Area. 

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 1.7. Parties: ANH and THE EVALUATOR. 
  
 1.8. Contracting Proposal: It is the document and the appendices thereof received by the ANH with the purpose of
entering into a hydrocarbon exploration and exploitation contract in the whole Technical Evaluation Area or in a part thereof, under the Rules. 
  
 1.9. Technical Evaluation Program: It is the description of the Technical Evaluation Operations agreed hereunder that THE EVALUATOR is obliged to execute
within the duration of this contract and subject to the execution chronogram for such activities and Operations and to the corresponding budget. 
  
 1.10. Rules: These are the rules governing the contracting of areas for the development of hydrocarbon exploration and exploitation activities, approved by the
Board of Directors of the ANH with Agreement 008 of 2004 and any other rules modifying, adding or annulling it. 
  
 CLAUSE 2 – PURPOSE 
  
 2.1. Purpose: By virtue of this contract THE EVALUATOR is given the exclusive right to carry out Technical Evaluation Operations at its own cost and
risk intended to evaluate the hydrocarbon potential with the purpose of identifying the zones with the greatest prospecting interest in the Technical Evaluation Area through the execution of the Technical Evaluation Program established in Appendix B
hereunder. Likewise, with this contract, the ANH grants the right of priority pursuant to the provisions of Clause 6.4. 
  
 2.2. Scope: THE EVALUATOR, in exercise of this right, shall execute the Operations object of this contract, at its exclusive cost and risk, providing all
the resources required to project, prepare and carry out the activities and the Technical Evaluation Operations within the Technical Evaluation Area. 
  
 2.3. Limitations: Except for the rights expressly provided hereunder, this contract shall not entitle THE EVALUATOR to execute Operations different
from those stated in Clause 1 (paragraph 1.6) nor to develop or producing hydrocarbons or any other natural resource that may be found in the Technical Evaluation Area. 
  
 The rights granted in favor of THE EVALUATOR under this clause shall not prevent that the ANH carries out or authorizes the
carrying out of all types of geophysical, geochemical, geological, cartographic, photo geological studies and works and, in general, all those 

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comprised within the surface exploration with the purpose of increasing the geological knowledge of the Technical Evaluation Area. 
  
 CLAUSE 3 – TECHNICAL EVALUATION AREA 
  
 3.1. Area: The Technical Evaluation Area comprises a total extension of 841.523
hectares and is located in the municipal jurisdiction of Paz de Ariporo Department Casanare, and La Primavera and Santa Rosalia Department Vichada. This area is described in Appendix “A” forming part of this contract. The Technical
Evaluation Area shall be reduced as a result of the entering into hydrocarbon exploration and exploitation contracts in such portion of the area corresponding to those contracts pursuant to the terms of Clause 6 (paragraphs 6.3 and 6.4) and/or as a
result of voluntary returns. 
  
 3.2. Restrictions: In the event
that a portion of the Technical Evaluation Area extends to areas within the National Parks System or other reserved, restricted or excluded zones, geographically demarcated by the competent authority, or if zones having such characteristics extend
into the Technical Evaluation Area, THE CONTRACTOR shall be obliged to observe all the conditions imposed for such areas by the competent authorities. ANH assumes no responsibility in this regard. 
  
 3.3. Relinquishment of the Technical Evaluation Area: THE EVALUATOR shall
unconditionally relinquish the Technical Evaluation Area or any part thereof, as the case may be, in all cases provided hereunder as grounds for relinquishment, either by simple surrender, expiration of terms, or any event provided for in Clause 6
(paragraphs 6.3 and 6.45) or, in general due to any contractual reason imposing THE EVALUATOR the obligation to relinquish the corresponding area. Any relinquishment of areas made during the execution of this contract shall be formalized with
a minute signed by the Parties. 
  
 3.4. Voluntary Relinquishment:
THE EVALUATOR may at any time make partial relinquishments of the Technical Evaluation Area without reducing the obligations derived from this contract. Such voluntary relinquishments shall not be smaller than the 20% of the Technical
Evaluation Area and shall not be made within period shorter than six (6) months, except what is provided in Clause 4 (paragraph 4.1). 
  
 3.5. Restoration of the Technical Evaluation Area: THE EVALUATOR shall develop of activities necessary to prevent, mitigate, correct or compensate any
negative impact and 

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effect on the environment caused by the execution of the Technical Evaluation Operations and shall restore the areas relinquished pursuant the provisions of
the Colombian law. 
  
 CLAUSE 4 – PERIOD OF CONTRACT

  
 4.1. Duration: This contract shall have duration of sixteen (16) months
from the Effective Date. 
  
 4.2. Waiving Right: At any time,
during the term of this contract, THE EVALUATOR shall have the right to waive this contract provided that it has satisfactorily complied with the Technical Evaluation Program in the portion provided to be executed within the corresponding
term and with any other obligation acquired. For such purpose, THE EVALUATOR shall give written notice to the ANH before the termination of the period stated in paragraph 4.1. 
  
 4.3. Extension of the Contract. The ANH shall extend the period of this
contract until completing the acquisition of a seismic program or the drilling of one (1) stratigraphic well in the Technical Evaluation Area and two (2) more months provided that the following conditions are complied: 
  

	a)	That the Technical Evaluation Operations above mentioned form a part of the Technical Evaluation Program agreed and that such Operations have been initiated at least thirty
(30) calendar days before the termination date of this contract. 

  

	b)	That notwithstanding the diligence exercised for the execution of such Technical Evaluation Operations, THE EVALUATOR reasonably considers that the remaining time is
insufficient to complete such Operations before the expiration of the contract’s period. 

  
 Together with the extension request, THE EVALUATOR shall deliver to ANH the documents supporting its request and the corresponding warranty pursuant to the requirements provided in Clause 11 hereunder.

  
 4.4. Termination of the Contract: Upon expiration of the period
stated in paragraph 4.1, the contract shall terminate and THE EVALUATOR shall return to the ANH the whole Technical Evaluation Area without prejudice to the compliance of all obligations provided by law and by this contract.

  
 CLAUSE 5 – TECHNICAL EVALUATION PROGRAM 

 
 5.1. Execution: During this contract’s period, THE EVALUATOR shall
execute the Technical Evaluation Program described in Appendix B forming part of this contract.  

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 5.2. Technical Evaluation Program: Within the thirty (30) calendar days following the Effective Date, THE
EVALUATOR shall present to the ANH the Technical Evaluation Program describing how the obligations shall be fulfilled. THE EVALUATOR shall forward to the ANH any modification to the Technical Evaluation Program originally
submitted, derived from circumstances agreed to be Force Majeure or Third Party Acts or activities additional to those set forth in the Technical Evaluation Program. 
  
 5.3. Additional Technical Evaluation Operations: THE EVALUATOR shall be able to execute Technical Evaluation Operations
additional to those included in the Technical Evaluation Program but without modifying, for such reason, the period agreed for the execution of the Technical Evaluation Program. To exercise such right, THE EVALUATOR shall give prior notice to
the ANH in respect to the additional Technical Evaluation Operations intended to be executed. 
  
 5.4. Adjustment of the Technical Evaluation Program: Following a partial relinquishment of the Technical Evaluation Area as a result of the entering into of an exploration and exploitation contract, if the
remaining area is smaller than the fifty percent (50%) of the area originally contracted, THE EVALUATOR shall be able to request the ANH the adjustment of the Technical Evaluation Program pending of execution in proportion to the
retained area. For such purpose, THE EVALUATOR shall present to the ANH a proposal to modify Appendix B according to the corresponding adjustments. The Parties shall agree the adjustment of the Technical Evaluation Program. In the
event there is no agreement in respect of the adjustment to the Technical Evaluation Program, the Parties shall be able to terminate this contract based on the Technical Evaluation Program executed up to such date and this shall not imply failure in
complying with the obligations derived from this contract. 
  
 CLAUSE 6 – THE EVALUATOR’S RIGHTS 
  
 6.1.
Autonomy: THE EVALUATOR shall have the control of all the Operations and activities developed for the execution of this contract. THE EVALUATOR shall plan, prepare, carry out and control all the activities and Technical Evaluation
Operations directly or through subcontractors, having technical and administrative autonomy pursuant to the Colombian law and observing the Good Practices of the Oil Industry. 
  
 6.2. Subcontractors: THE EVALUATOR shall be able to select and subcontract specialized firms for the partial or total
execution contained in the Technical Evaluation Program, 

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ensuring that all the subcontractors comply with the terms provided by this contract and by the Colombian law. 
  
 6.3. Contract Request: At any time during the period of this contract, subject
to the Rules, THE EVALUATOR shall be able to present to the ANH a Contracting Proposal in respect of the Technical Evaluation Area, partially or in whole. In the event that an exploration and exploitation contract is entered into with
THE EVALUATOR, the area being the object of this contract shall be excluded from the Technical Evaluation Area. This action shall be formalized with a minute signed by the Parties. 
  
 6.4. Right of Priority: If during the period of this contract and two (2) more months, the ANH receives a Contracting
Proposal from a third party in respect to the Technical Evaluation Area, partially or in whole, THE EVALUATOR shall be able to exercise its right of priority on the area being the object of the Contracting Proposal presented by the third
party. 
  
 For the purposes of exercising such Right of Priority, the following
procedure shall be followed: 
  
 6.4.1. The ANH shall give notice to
THE EVALUATOR of the receipt of such Contracting Proposal, specifying the coordinates of the requested area in respect to the Technical Evaluation Area and the minimum exploratory program accepted by the ANH.  
  
 6.4.2. Upon receipt of the notice given by the ANH, THE EVALUATOR shall
have thirty (30) calendar days to exercise its Right of Priority by submitting the minimum exploratory program pursuant to Appendix 1 of the Rules. This program shall match or exceed the minimum exploratory program agreed by the ANH.

  
 Paragraph: In the event that THE EVALUATOR presents a joint
proposal with a third party, this third party shall deliver, in addition to Appendix 1, the documents evidencing its legal, technical, financial and operational capabilities pursuant to the requirements of the Rules. 
  
 6.4.3. If THE EVALUATOR exercises its Right of Priority and the ANH
considers that, technically and financially, the minimum exploratory program submitted by THE EVALUATOR matches or exceeds the minimum exploratory program offered by the company having presented a contracting proposal and, in the event
that the proposal is submitted jointly with a third party, the ANH shall advise THE EVALUATOR, within the fifteen (15) days following the receipt of the proposal, if the proposal has been accepted and whether or not the third party has
been admitted; the ANH shall then proceed to request the authorization to enter into the contract. Upon authorization by the Board of Directors of the ANH, the Parties shall have a sixty (60) calendar day term from the date of the
notice of authorization to sign the future contract. 
  
 6.4.4. If THE
EVALUATOR does not submit the Contracting Proposal within the term provided pursuant to the requirements set forth in paragraph 6.4.2; if THE EVALUATOR 

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exercises its Right of Priority but the minimum exploratory program does not match or exceeds the minimum exploratory program offered by the third company;
or if THE EVALUATOR does not exercise its Right of Priority within the term provided in the above paragraph due to circumstances imputable to THE EVALUATOR, THE EVALUATOR agrees that no right is generated in its favor in respect
to the area being the object of the superposition and therefore waives to make any type of claim for such purpose and the ANH shall be able to freely dispose of such superposed area. In the event the ANH does not enter into any
exploration and exploitation contract with the third party having submitted the contracting proposal, the rights on the area superposed shall not be affected and the area shall remain subject to the conditions of this contract. 
  
 6.4.5. In the event that an exploration and exploitation contract is signed with a
third party in respect to any area, such area shall be excluded from the Technical Evaluation Area and THE EVALUATOR shall be released from complying with the Technical Evaluation Operations in proportion to the area excluded and in the
manner expressly stated in the Technical Evaluation Program. 
  
 CLAUSE 7. ASSIGNMENT RIGHT 
  
 THE EVALUATOR has the right
to assign any interests, rights and obligations derived from this contract, with ANH’s prior written authorization, to another company, consortium or joint venture having the financial capacity, the technical competency, the professional
capabilities and the legal capacity required to operate in Colombia. 
  
 7.1. PROCEDURE: For such purpose, THE EVALUATOR shall make a request to the ANH, stating the essential elements of the negotiation, such as name of the eventual assignee, information on its legal, financial,
technical and operational capabilities, the value of the rights and obligations to be assigned, the scope of the operation, etc. 
  
 Within the sixty (60) working days following the receipt of the request duly presented, the ANH shall exercise its discretional privilege of analyzing the
information provided by THE EVALUATOR to make a decision with no need to explain the reasons. In the event that any of the companies forming part of THE EVALUATOR carries out a merger, break-up, acquisition, transformation or
any other type of process, the ANH shall be promptly informed, without prejudice to the information that the Colombian authorities may require. The ANH reserves its right to asses the new conditions of THE EVALUATOR or of any of
the companies forming part thereof in respect to the financial capacity, technical competency, professional abilities or legal capacity required to operate and shall be able to require appropriate warranties. 

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 For assignments made in favor of any company controlling or directing THE EVALUATOR or any of the companies
forming part thereof or any of its affiliates or subsidiaries, or between companies forming part of the same economic group, if the ANH does not give a reply within the term established, the corresponding assignment shall be understood to be
authorized. 
  
 CLÁUSULA 8 – DERECHOS DE LA ANH

  
 8.1. Economic Rights. THE EVALUATOR will acknowledge and pay
ANH the following one time fees, one hundred forty thousand and three hundred seven dollars. 
  
 PARAGRAPH. This payment will be made within thirty (30) calendar days following the Effective Date. The value of this economic right will not be adjusted, even if any modifications to the Technical Evaluation
Contract are made during the contract term. 
  
 8.2. Inspection:
Inspection: During the life of this Contract, ANH may at its own risk and any time, by giving notice to the EVALUATOR, witness trough authorized representatives, the Technical Evaluation Operations performed by the Operator by
virtue of this contract. AHN will be solely liable for any actions derived from the activities performed by the authorized representatives during the inspections. EVALUATOR will not be liable for any injuries, diseases or death that
could suffer the authorized representatives during the course of said inspections. 
  
 8.3. Entering into Contracts: At any time during the life of this contract, AHN may enter into hydrocarbon exploration and exploitation contracts on the Technical Evaluation Area with THE EVALUATOR or with
third parties, subject to the provisions of Clause 6 (paragraphs 6.3 y 6.4) hereunder. 
  
 CLAUSE 9 – ANH OBLIGATIONS 
  
 9.1.
Confidentiality: AHN agrees that all data and information produced, obtained or interpreted by THE EVALUATOR as a result of the operations and this Contract are considered to be strictly confidential 
  
 9.2. Claims: The AHN agrees to give notice immediate notice in writing to THE
EVALUATOR, if it comes to know of any claim or legal proceedings that may affect the rights of THE EVALUATOR arising from this contract, so that THE EVALUATOR may adopt the measures it deems more convenient for the defense of its
interests. 

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 9.3. Other Activities in the Area. The fact that ANH carries out or grants authorizations for surface
exploration activities pursuant to clause 2.1 should not prevent THE EVALUATOR to continue exercising all the rights over the Area conferred under this contract. The rights provided hereunder in favor of THE EVALUATOR will prevail over
the rights contained in the authorizations for surface exploration activities. The ANH agrees to grant said authorizations when the rules admit carrying out of concurrent activities and activities by more than one operator, in areas
superposed with the Technical Evaluation Area. 
  
 The ANH will include in
said authorizations, a liability clause for its activities in the Technical Evaluation Area. 
  
 The ANH will give notice to THE EVALUATOR on authorization of any planned activity to be carried out directly or through authorizations and on commencement of works in the Technical Evaluation Area.

  
 CLAUSE 10 – INFORMATION AND CONFIDENTIALITY

  
 10.1. Delivery of Information: THE EVALUATOR shall keep the AHN
promptly and constantly informed on the progress and results of operations. Therefore, in addition to documents required in other clauses of this Contract, THE EVALUATOR will deliver to ANH, all the scientific, technical and
environmental information obtained during performance of this Contract. This information will be delivered to ANH in accordance with the Manual for the Supply of Exploration and Exploitation Information in force at the time of the delivery,
provided it is applicable to the activity performed. 
  
 10.2. Confidentiality

  
 10.2.1 Duration. Unless otherwise provided hereunder, the Parties
agree that all data and technical information produced as a result of the operations of this Contract are considered to be strictly confidential for the term stated in the Preferential Right, in accordance with clause 6, paragraph 6.4. AHN
agrees to use this information without restrictions in the most convenient manner to its interests, without prejudice as to the provisions set forth in Clause 13 (paragraph 13.2) of this contract. This stipulation does not apply to data or
information which the Parties should supply in accordance with provisions of law or regulations in force, nor those required by affiliates, consultants, contractors, auditors, legal advisers, financial institutions and competent authorities with
jurisdiction over the Parties or their affiliates, and or due to the rules of any stock exchange on which the shares of THE EVALUATOR or its related parties are listed. Restrictions on the disclosure of information will not impede THE
EVALUATOR from supplying data or information to companies interested in the possible execution of an exploration and exploration contract assignment of rights in relation to the Contract Area, provided that such companies sign a related 

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confidentiality agreement, and agree to comply with the terms of this Clause. ANH undertakes not to deliver to third parties any information or data
obtained as a result of THE EVALUATOR’s operations, except as necessary to comply with some provision of law applicable to ANH, or the normal course of its functions. 
  
 10.3. Final Evaluation Report. Within two (2) months following expiration of the term stated in clause 4 (paragraph 4.1)
THE EVALUATOR will make a presentation to ANH and will deliver to ANH a final report on the results of the evaluation of the hydrocarbon potential; identification of the areas with the highest prospective interest in the
Technical Evaluation Area; compliance with the obligations of this contract and requirements of the competent authorities with respect to the execution of the Technical Evaluation Program. This final report shall be signed by a geophysical or
geologist with professional license in force. THE EVALUATOR agrees to give immediate notice to the ANH on any error or omission discovered by THE EVALUATOR in the final report after its delivery to ANH. 
  
 Without prejudice as to the obligations of THE EVALUATOR EVALUADOR hereunder, the
ANH acknowledges the risk of errors inherent to the acquisition, processing and interpretation of the information delivered. THE EVALUATOR shall have no responsibility with respect to the use that ANH gives to this information.

  
 CLAUSE 11 – GUARANTEES AND INSURANCE 
  
 11.1. Performance Bond. THE EVALUATOR will furnish to ANH, in the
manner, and under the terms and conditions stated in the contract, a performance bond to guarantee compliance and correct execution of all the obligations of the Technical Evaluation Program and any other activities related to said obligations. In
no case will this guarantee have the nature of a penalty clause. 
  
 11.1.1.
Form of Performance Bonds. THE EVALUATOR will, at its own expense, establish one or more standby letters of credit, which shall be unconditional and irrevocable, payable at sight and opened with a bank or financial institution legally
established in Colombia. 
  
 11.1.2. Delivery of the Performance Bond.
THE EVALUATOR will deliver the performance bond mentioned in this Clause to ANH, in accordance with the essential terms of forms contained in Annex C of this Contract, not less than eight calendar Days prior to the start of the
Effective Date. If for reasons alien to the wishes of THE EVALUATOR, duly justified, THE EVALUATOR is unable to deliver the guarantee to ANH in the time permitted here, ANH may extend the delivery date. If THE
EVALUATOR fails to deliver the performance bond within the terms permitted this will be a cause for breach of Contract. 

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 11.1.3. Performance Bond Value. The performance bond will be furnished for 10% of the budget value of the
Technical Evaluation Program, denominated in dollars of the United States of America. The amount of guarantee for each phase may not be less than fifty thousand dollars of the United States of America (USD$50.000) The value of the performance bond
for each phase may not be higher than five hundred thousand dollars of the United States of America (USD$500.000). 
  
 11.1.4. Validity of the Performance Bond: Each and every performance bond must be valid for the term stated in clause 4 (paragraph 4.1), plus four (4) additional
months, and shall be paid in advance, once all the guaranteed obligations have been met. In case of extensions, the performance bond must also be extended or replaced by other of the same value, with an effective term equal to the term of extension
plus four (4) additional months. 
  
 11.1.5. Rejection of the Performance
Bond. ANH will reject the performance bond provided by THE EVALUATOR if it fails to comply with the requirements of this Clause. ANH will have one (1) Month from the time of receipt and mentioned in paragraph 11.1.2, to
advise THE EVALUATOR of rejection, and to return the guarantee presented. As of the date of said delivery, THE EVALUATOR will have fifteen (15) days to correct the bond. Should this occur guarantees rejected will be understood not to
have been delivered for the purposes of Section 11.1.2. 
  
 11.1.6. Call of the
Performance Bond ANH will call the performance bond if THE EVALUATOR is in breach of all or part of any of the obligations guaranteed, without prejudice to the performance of the remaining obligations contracted. The payment of the
guarantee does not relieve THE EVALUATOR of its obligation to pay indemnities for damages caused by its breach. ANH reserves the right to resort to mechanisms for the solution of disputes when the value of the guarantee is not
sufficient to cover the amount of indemnities. 
  
 11.2. Insurance: THE
EVALUATOR will take all insurances required by Colombian law and any other normal insurance expected in Good Oil Industry Practices. At the same time, it will require each contractor performing any type of works in the Contract area, to take or
maintain the insurances which it considers necessary. The costs incurred by the taking and maintenance of these insurances are for the account and responsibility of THE EVALUATOR. 
  
 CLAUSE 12 – ENVIRONMENT 
  

12.1. THE EVALUATOR will pay special attention to the protection of the environment and to compliance with regulations on the matter. Without prejudice
to compliance with legal or 

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military requirements, for this purpose THE EVALUATOR will adopt and implement specific contingency plans to attend to emergencies, and repair damage
in the most efficient and timely way possible. 
  
 12.2. THE EVALUATOR will
make a half-Yearly report to ANH on environmental aspects of operations in progress, the application of preventive plans and contingency plans, and with regard to the status of activities or applications to the environmental authorities with
regard to permits, authorizations, concessions or licenses, as the case may be. 
  
 12.3 If any Technical Evaluation Operation requires permits, authorizations, concessions or environmental licenses, THE EVALUATOR will not pursue that activity or operation until the permit, authorizations, concession or
license is obtained. 
  
 CLAUSE 13 – RESPONSIBILITIES 
  
 13.1. Except for the provisions of paragraph 8.2., THE EVALUATOR will
have sole liability for the activities object of this contract, and therefore will release and keep ANH exempt of all obligations, as well as of the effects that may result against the former such as seizure, lawsuits, trials and/or claims of
any nature, included but not limited to injury or death of any person, total or partial destruction of property or goods and/or damages to the environment, caused in any way connected to, with reference to, or derived from the acquisition,
processing, reprocessing and/or interpretation of the information and technical data and/or any activity performed by THE EVALUATOR by virtue of this Contract. The foregoing without prejudice as to the obligation to compensate the owners of
land or any other person to whom damages are caused. THE EVALUATOR will assume the cost of the defense and any other costs, expenses or expenditure for all the lawsuits filed against the ANH as a consequence of said claims, and is
committed to assume the costs of any trial resulting thereof, including but not limited to the costs necessary to make repairs or compensate for said damages, legal or extralegal costs derived thereof, research costs, legal fees, etc. The ANH
will participate in its defense against any lawsuit that it may be involved in, but this will not exempt THE EVALUATOR of the obligations herein described. The obligation of THE EVALUATOR to protect and keep the ANH and its
personnel free and exempt, pursuant to this clause, will be kept even if THE EVALUATOR has warranty or legal protection against claims or lawsuits. 
  
 13.2. THE EVALUATOR shall be solely liable for any damages or losses derived from the execution of the Technical Evaluation program and other obligations
contracted, activities performed, and even those caused by subcontractors; however, it is understood that at no time shall it be responsible for errors of judgment or damages and losses which are not the result of gross negligence or deceit. When
THE EVALUATOR subcontracts, it will ensure 

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that all the subcontractors comply with the terms set forth in this Contract as well as with Colombian law. The works and services will be performed on its
behalf, therefore THE EVALUATOR will remain directly responsible for all the obligations provided in the subcontract and derived from the same, and it will not be relieved by the existence of the subcontracts. The ANH assumes no direct
or several responsibility for this matter. 
  
 13.3. THE EVALUATOR will
take all necessary precautions to protect the environment, human life, property of others and to prevent contamination in the Technical Evaluation Area. Consequently, THE EVALUATOR will assume the cost of environmental and sanitary
management, occupational health, safety and all other expenses, even if not mentioned in this paragraph or in other clauses of this Contract, or derived from the activities performed by virtue of this Contract. 
  
 13.4. THE EVALUATOR acts as sole employer of the employees which it contracts for
activities undertaken in this Contract, and therefore, it will be responsible for labor obligations arising from labor relations or contracts, such as payment of salaries and fringe benefits, payroll taxes, affiliation and payment of pension
contributions, health and occupational risks to the social security system, as required by law. In any case, THE EVALUATOR will comply with the provisions of law which govern the proportion of local and expatriate employees in executive and
non-executive positions. 
  
 13.5. Neither party will be responsible for
any lawsuit or claim filed by the other Party for consequential damages arising by virtue of this contract. 
  
 CLAUSE 14 – FORCE MAJEURE AND ACT OF THIRD PARTIES 
  
 14.1. Definitions. For the purposes of this Contract, Force Majeure is an unforeseen event which it is not possible to resist, such as a law, an act of authority, a shipwreck, an earthquake, etc; and an
act of a third party is an irresistible act, legally alien to the party alleging it, such as a war, and ill-intentioned act of third parties, etc. For the purposes of this Contract both Force Majeure and the act of third parties will be
considered to relieve responsibility, and to excuse performance of non-financial obligations affected by such circumstances, provided that they have an alien cause, and the Party receiving notice of the same accepts that it is irresistible, and that
the event occurring represented an impediment. 
  
 14.2. Suspension: The
performance of obligations under this Contract will be suspended throughout the time during which either Party is unable to perform all or part of its obligations, for reasons of Force Majeure or irresistible acts of third parties. If either
Party is 

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affected by any of such circumstances, it will advise the other within 15 calendar Days following, invoking this Clause, and presenting appropriate
justification, specifying the causes originating the impediment, the manner in which compliance of the related obligation is affected, the estimated period of suspension of activities, and any other information which allows it to be shown that the
event has occurred, and was irresistible. 
  
 14.3. Acceptance: Within 15
calendar Days following receipt of the notice, the Party not affected will respond in writing, accepting the circumstance relieving the responsibility, or rejecting the circumstance, and if accepted, the terms for compliance with obligations
affected will be suspended. In this case, the suspension will commence from the moment at which the event invoked as a cause for suspension occurred. If the Party not affected does not reply within the time given, it will be understood that it
accepts the occurrence of the cause invoked, and performance of the obligations affected will be suspended. Suspension will only interrupt compliance of the obligations affected. 
  
 14.4. Cessation of Suspension. The Party affected by the cause relieving responsibility will resume compliance of obligations
suspended within one month following the disappearance of the event invoked as a cause of suspension. In this case, it will inform the other Party within 15 calendar Day following. The Party obliged to perform the obligation will employ best efforts
to perform within the terms and conditions agreed by the Parties. 
  
 14.5.
Effects on Terms: If the suspension impedes the performance of any of the Evaluation Operations contained in the Technical Evaluation Program, and said impediment is prolonged for more than two consecutive months, ANH will restore the
Contractual terms for a period equal to that of the impediment, without prejudice to the fact that THE EVALUATOR must extend the existing warranties or obtain new ones, in the terms provided in Clause 11. 
  
 CLAUSE 15 – TERMINATION 
  
 15.1 Cause for Termination: This Contract terminates and the rights of THE
EVALUATOR, will cease in any of the circumstances listed below: 
  
 15.1.1
Expiration of the term stipulated in Clause 4, paragraph 4.1. 
  
 15.1.2 Signing a hydrocarbon exploration and exploitation contract. In said cases, the effects of this Contract will cease only in what respects to the Technical Evaluation Area on which said Contract is signed. 
  

	15.1.3	Resignation of THE EVALUATOR during the evaluation period, pursuant to the provisions of Clause 4 (paragraph 4.2). 

  

	15.1.4	At any time by mutual agreement between the parties 

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 15.1.5 Through a declaration of breach on the part of the ANH for breach on the part of THE
EVALUATOR. 
  
 15.1.6 Through the application of any of the causes of
unilateral termination provided for in this Contract. 
  
 15.1.7 With the
occurrence of any of the causes of termination or forfeiture ordered by the law. 
  
 In the circumstances provided for in paragraphs 15.1.5, 15.1.6, 15.1.7, the ANH will call on the guarantee mentioned in Clause 11, without prejudice to any recourse it may have, or actions which may decide to bring. 
  
 15.2 Causes of Termination for Breach of this Contract: The causes of
termination for breach are as follows: 
  
 15.2.1. Unjustified
continuous suspension of the execution of the Technical Evaluation Program for more than half the term stipulated in clause 4 (paragraph 4.1). 
  
 15.2.2. Unjustified omission of the terms stipulated for delivery the technical information to the ANH, as a result of the Technical Evaluation Operations,
provided that said omission prevents the ANH from executing its functions. 
  
 15.2.3. Unjustified non-compliance of other obligations contracted by THE EVALUATOR by virtue of and related with the object of this Contract. 
  
 15.3 Procedure for Declaration of Breach: Should any of the causes of breach occur, ANH may terminate this Contract sixty (60)
days after having sent written requirements to THE EVALUATOR, indicating the cause invoked for such a declaration, provided that THE EVALUATOR has not presented any satisfactory explanation to the ANH within 20 working days
after receiving the requirement, or if it has not corrected its performance in fulfillment of the Contract within sixty days. If within the term of 20 days mentioned heretofore, THE EVALUATOR presents explanations that are satisfactory to
ANH, and the remaining term to complete the sixty calendar day term is insufficient to perform the obligations pending, the ANH may grant additional time to allow said performance, without prejudice of demanding the necessary
guarantees to support it. If at the end of this time, the necessary corrective measures have not yet been taken, the ANH will declare breach and termination of this Contract. It is understood that the term provided in this paragraph
for compliance with pending obligations does not constitute an extension of the term provided in clause 4 (paragraph 4.1) of this Contract, THE EVALUATOR will not have the right of preference stated in clause 6 (paragraph 6.4).

  
 15.4 Cause of Unilateral Termination: ANH may unilaterally declare this
Contract terminated at any time in the following circumstances: 

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 15.4.1 If a process of Liquidation of THE EVALUATOR is initiated THE EVALUATOR being a corporate
entity. 
  
 15.4.2 If a judicial embargo is placed on THE
EVALUATOR which seriously affects performance of the Agreement. 
  
 If THE
EVALUATOR is composed of several corporate entities and /or individuals, the causes mentioned in the foregoing paragraphs will apply when they seriously affect the fulfillment of the Contract. 
  
 15.5 Mandatory Clauses. The ANH will declare termination, forfeiture or the
mandatory liquidation of this Contract with the occurrence of causes given in the law, such as those provided for in Law 418 of 1997, successively extended and amended by Laws 540 of 1989 and 72 of 2002 or Law 40 of 1993, or in laws which replace or
amend them. 
  
 15.6 Subsequent Obligations. If this Contract is
terminated for any cause, and at any time, the Parties are obliged to satisfactorily fulfill their legal obligations to each other, and to third parties, as contracted in this Contract. This includes the assumption of responsibility for loss and
damage resulting from the unilateral termination and for causes acceptable to THE EVALUATOR, where there are mandatory indemnities or compensation to pay. 
  
 CLAUSE 16 – SPOKESPERSON 
  

Without prejudice of the legal rights of THE EVALUATOR derived from legal provisions or from the clauses of this Contract, the ANH will be the
spokesperson of THE EVALUATOR before the Colombian authorities in what refers to the activities that must be performed by virtue of this Contract, whenever needed, and will provide to the government officials and entities all the information
and reports that may be legally required. THE EVALUATOR is obliged to prepare and provide the ANH with the pertinent reports. The expenses incurred by the ANH to cover any matter pertinent to this clause, will be assumed by
THE EVALUATOR, and when said expenses exceed the amount of five thousand dollars of the United States of America (USD $5.000) or its equivalent in Colombian currency, it will require prior approval of THE EVALUATOR. The Parties declare
that, for any relationship with third parties, the provisions of this Clause or any other Clause of this Contract do not imply granting a general power of attorney, nor that the Parties have constituted a civil or commercial corporation, or any
other type of relation so that either Party may be considered joint and several liable for acts or omissions of the other Party in what respects to any obligation. This Contract relates to activities within the territory of the Republic of Colombia.

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 CLAUSE 17 – SOLUTION OF DISPUTES BETWEEN THE PARTIES 
  
 17.1. Executive Instance: Any difference or disagreement arising in regard to
performance of this Contract will be solved by the officers of the Parties authorized for this purpose. If the disagreement has not been resolved within thirty (30) calendar days from date of written notice, the matter will be referred to the most
senior executive of the Parties resident in Colombia, in order to seek a joint solution. If within thirty (30) calendar days following the date on which one of the Parties has requested the other that the disagreement the submitted to those senior
executives as mentioned, the Parties reach an agreement or decision on the matter in question, within fifteen calendar Days of reaching such an agreement or decision, that agreement or decision adopted will be signed. 
  
 17.2. Expert Intervention, and Arbitration. If within the thirty (30) days mentioned,
the senior executives of the Parties cannot reach an agreement or decision, or if within the fifteen (15) days mentioned, no agreement or decision adopted is signed, either Party may resort to the mechanisms provided for in Subsections 17.2.1,
17.2.2, and 17.2.4, as the case may be, and as follows: 
  
 17.2.1. Technical
Experts. If the matter is a technical disagreement, it will be submitted to the opinion of experts appointed as follows: one by each party, and the third named by the other two experts. Should the experts not agree, at the petition of either
party, the third expert will be appointed by the association of professionals on the matter involved in the dispute or a related area, where the association is a technical body acting as consultative institution for the National Government, based in
Bogotá. 
  
 Once the experts have been appointed: 
  
 a) the experts will issue their opinion within thirty (30) days of appointment. The
experts will indicate the place and time for the receipt of information from the Parties. At the request of the experts, the Parties may grant an extension of the initial term allowed. 
  
 b) The Parties will deliver all relevant information, which the experts may consider to be necessary; 
  
 c) The Parties will focus and demarcate the matter on which the experts are to
decide; 
  
 d) The costs and expenses of the technical experts will be
borne by the Parties in equal portions; and 
  
 e) The opinion will be
issued by majority, and will be binding on the Parties for the purposes of settlement. 
  
 17.2.2. Accounting Experts. If the disagreement is an accounting matter, it will be submitted to the opinion of experts who will be qualified public accountants, one appointed by each party, and the third by the two principal
experts. Should the two experts fail to agree, and at the petition of either party, the third expert will be appointed by the Junta Central de Contadores (Colombia’s Board of Public Accountants) in Bogotá. Once the 

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experts have been appointed, the procedure will be similar to that stipulated in sub-paragraphs (a) to (d) of the preceding paragraph. 
  
 17.2.3. Dispute as To Nature. If the disagreement between the Parties is with regard
to its nature, as a technical, accounting or legal matter, then it will be considered to be a legal matter. 
  
 17.2.4. Arbitration. Any disagreement or controversy arising or related to this Contract, and which is not a technical or accounting disagreement, will be resolved by arbitration. The Arbitration Court will be
made up of three arbitrators named by mutual agreement between the Parties. If the Parties cannot agree on the appointment of the arbitrators, they will be appointed by the Bogotá Chamber of Commerce Arbitration and Conciliation Centre, upon
request of either Party. In all instances, the arbitrators will have accredited experience of more than five (5) years in matters related to the oil industry. The Arbitration Court will apply Colombian substantial law in force, and its decision will
be lawful. Arbitration proceedings will be conducted in Spanish. 
  
 CLAUSE 18 – PAYMENTS AND CURRENCY 
  
 18.1. CURRENCY:
All payments to be made by THE EVALUATOR to the ANH under this Contract will be made in United States dollars if permitted by exchange regulations or in Colombian pesos and at the bank designated by the ANH. THE EVALUATOR
may make payments in other currencies when allowed by exchange regulations and with prior authorization of the ANH 
  
 18.2. Exchange Rate: If currency is to be converted from United States dollars to pesos, the Market Representative Foreign Exchange Rate (TRM) for the date of
payment will be applied, as certified by the Office of the Banking Superintendent, or the agency acting on its behalf. 
  
 18.3. Default Interests: If payments due from THE EVALUATOR to the ANH are not made within the terms provide, THE CONTRACTOR will pay
Default Interests at the maximum legal rate allowed. 
  
 CLAUSE
19 – APPLICABLE LAW 
  
 For all purposes of this Contract, the Parties
establish the city of Bogotá, D.C. Republic of Colombia as their domicile. This Contract will be governed in all its parts by Colombian law, and THE EVALUATOR waives any attempt at diplomatic claims to support its rights and
obligations under this Contract, except in the case of denial of justice. It is understood that there will not be denial of justice if THE EVALUATOR has had access to all recourse and means of action available under Colombian law. 

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 CLAUSE 20 – TAXES 
  
 THE EVALUATOR accepts to be subject to Colombian tax law. 
  
 CLAUSE 21 – SERVICE OF NOTICE AND COMMUNICATIONS 
  
 21.1. Domicile for Service and Communications. Notices and communications between the Parties will be addressed to their legal
representatives to the domiciles registered for service of judicial notices, which at the date of execution of this Contract are: - 
  
 For the ANH: Calle 37 No. 7-43, Piso 5, Edificio Guadalupe, Bogotá, D.C., Colombia. 
  
 For THE EVALUATOR: Calle 114 No. 9-01 Floor 10 Office 1003 Phone Number 6-292030 Bogotá, D.C., Colombia, HARKEN DE COLOMBIA,
LIMITED. 
  
 21.2. Changes: If a Party changes legal representation
or domicile from those indicated above, it will officially notify the other Party within five (5) working days following the date when said change occurs. 
  
 21.3. Effective date. Communications between the Parties related to this Contract will be effective upon receipt by the Party to whom it is addressed at the
domicile indicated above and in any case when delivered to the domicile for service of judicial notice registered at the Chamber of Commerce. 
  
 CLAUSE 22 – DOCUMENTS OF THE CONTRACT 
  
 The following documents are integral part of this Contract: 
  
 Annex A (Boundaries and Map) 
  
 Annex B (Technical Evaluation Program) 
  
 Annex C
(Letter of Credit Sample) 
  
 CLAUSE 23 – LANGUAGE

  
 For all purposes and actions related to this Contract the official
language will be Spanish. 
  
 CLAUSE 24 – FORMALIZATION

  
 This Contract is formalized with the signature of the Parties. 

 
 In witness whereof this Contract is signed in Bogotá, D.C. on the 27th of May, Two Thousand and Five (2005). 
  

 

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 ANNEX “A” – CONTRACTED AREA 
  
 ANNEX TO THE “VALLE LUNAR” SECTOR EXPLORATION AND EXPLOITATION
CONTRACT 
  
 The total Contracted Area in the block described below has an
extension of eight hundred forty one thousand five hundred and twenty three (841,523) hectares and four thousand eight hundred and forty (4.840) square meters. The cartographic data was taken from the Political Map of Colombia, digital file of
I.G.A.C, at a scale of 1:1’500.000. 
  
 VALLE LUNAR BLOCK 
  
 The area of the polygon taken from the vertexes described below is of eight hundred forty
one thousand five hundred and twenty three (841,523) hectares and four thousand eight hundred and forty (4.840) square meters, located in the municipal jurisdictions of Paz de Ariporo, Casanare Department and La Primavera and Santa Rosalía in
Vichada Department. This area is described below as appears in the drawing attached as Annex “A”, which makes an integral part of this Contract, as well as in the corresponding charts: The reference point used is the “TELL-117”
Auxiliary Geodesic Point of the Instituto Geográfico Agustín Codazzi, the plane Gauss coordinates of which, with origin in Bogotá, are: N-1’045.241,984 meters, E-1’242.850, 73 meters, and the geographic coordinates of
which are Latitude 05° 00’16”0,334 North of the Equator and Longitude 71° 53’ 29” 0,802 West of Greenwich. 
  
 Point A: 
  
 From this (TEL-117) point the boundary line continues N 85° 10.’ 34.” 0,443 thousand E for a distance of 135163,009 meters until arriving at Point ‘A’, departure point to mark boundaries whose
coordinates are N-1056608 meters, E- 1377535 meters. 
  
 Point B:

  
 From this reference point, it continues in a NORTHERLY direction for a
distance of 25020 meters until point ‘B’, the coordinates of which are N- 1081628 meters, E- 1377535 meters. 
  
 Point C: 
  
 From this point, it continues in an EASTERLY direction for a distance of 16608 meters until reaching point ‘C’, the coordinates of which are N- 1081628 meters, E- 1394143 meters. 
  
 Point D: 
  
 From this point, it continues in a NORTHERLY direction for a distance of 64703 meters until point ‘D’, the coordinates of which
are N- 1146331 meters, E- 1394143 meters. 

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 Point E: 
  
 From this point, it continues in an EASTERLY direction for a distance of 891160 meters until point ‘E’, the coordinates of which are coordinates are N- 1146331
meters, E- 1483303 meters. 
  
 Point F: 
  
 From this point, it continues in a SOUTHERLY direction for a distance of 89723 meters until
point ‘F’, the coordinates of which are N- 1056608 , E- 1483303 meters. 
  
 From this point it follows in a WESTERLY direction for f 105768 meters until point ‘A’, the starting and ending point of the boundary. 
  
 CALCULATION OF THE AREA DIRECTIONS, AND
DISTANCES AS OF THE GAUSS COORDINATES, ORIGIN BOGOTÁ 
  
 Table of Data and Results for the VALLE LUNAR Sector 
  
 Municipal Jurisdictions of Paz de Ariporo, Casanare Department, and La Primavera and Santa Rosalía at Vichada
Department 
  
 

 
  
 AREA DEL POLIGONO
(Has.): 841.523,484 
  

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 ANNEX B 
 TECHNICAL EVALUATION PROGRAM 
 ANNEX TO THE TECHNICAL EVALUATION CONTRACT OF 
 “VALLE LUNAR” SECTOR 
  
 THE EVALUATOR agrees to complete as a minimum, the following Evaluation Program : 
  

	Ø	Micromagnetism and Radiometry Study (concurrent aerial acquisition), in a length of 2100 kilometers (30 lines of 70 kilometers) 

  

	Ø	Reprocessing and interpretation of eight hundred (800) kilometers of 2D seismic 

	

	Ø	Interpretation in six (6) horizons: production of six (6) time maps and two (2) block depth maps 

  

	Ø	Evaluation of wells (alter seismic interpretation): 

  

	 	1.	Petrophysics of ten (10) wells from logs 

  

	 	2.	Post-mortem evaluation of wells in the area, integrating the results of the seismic interpretation 

  
 Final technical evaluation report 
  
  

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 ANNEX “C” – LETTER OF CREDIT FORM 
 ANNEX TO THE “VALLE LUNAR” TECHNICAL EVALUATION AGREEMENT 
  

					
	 LETTER OF CREDIT NO.
	  	:	  	_______________________________
			
	 PLACE AND DATE OF ISSUANCE
	  	:	  	_______________________________
			
	 EXPIRATION DATE
	  	:	  	[___ The time between this date and the date for termination of the phase shall not be of less than 60 days. ____]
			
	 PAR VALUE
	  	:	  	_________________ (US$________)
			
	 ISSUER BANK
	  	:	  	[____ Name of the Issuer Bank _____]
			
	 BENEFICIARY
	  	:	  	AGENCIA NACIONAL DE HIDROCARBUROS – ANH
			
	 ORDERING PARTY
	  	:	  	[____ Name of the Company ____]
			
	 NAME OF THE CONTRACT
	  	:	  	 

  
 We hereby inform you that under the
name and to the order of [____ Name of the Company ____], hereinafter referred to as THE EVALUATOR, we have issued this irrevocable stand-by letter of credit for the amount in Colombian pesos resulting from the conversion at the market
exchange rate effective on the date notice on non-fulfillment described below is sent to us for the amount of _________ Dollars of the United States of America (US$ _________), to guarantee compliance and correct execution of all of any of the
obligations of the Technical Evaluation Program, having a term of _________ and of the other activities and obligations under the TECHNICAL EVALUATION AGREEMENT, entered into between THE EVALUATOR and ANH on _________, hereinafter referred to
as THE CONTRACT. 
  
 It is agreed that the responsibility of the [____ Name of
the Issuer Bank ____] under this stand-by letter of credit is exclusively limited to the above mentioned amount in Colombian legal currency. 
  
 In the event of non-fulfillment by THE EVALUATOR of any or all the obligations and other activities related to said obligations under THE CONTRACT described
in the first paragraph of this stand-by 

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letter of credit hereinafter referred to as GUARANTEED OBLIGATIONS, the Beneficiary shall give notice on said non-fulfillment to [____ Name of the Issuer
Bank ____] at the offices in _______________, within the term of this letter of credit. On the same date we receive said notice, we will proceed to unconditionally pay to the order of the Beneficiary the claimed amounts charged to this letter of
credit, without exceeding in any case, the total guaranteed value. 
  
 If the
mentioned notice of non-fulfillment is not given within the term of this letter of credit, our responsibility shall cease. 
  
 The notice informing to the [____ Name of the Issuer Bank ____] on non-fulfillment of the GUARANTEED OBLIGATIONS, shall consist on a document duly signed by the
Legal Representative of ANH or whoever acts in such condition, stating the non-fulfillment by THE EVALUATOR of the GUARANTEED OBLIGATIONS and requesting payment of this letter of credit. Said notice shall contain the number of this
letter of credit and its value converted to Colombian currency at the market exchange rate effective on the date on which said notice is sent to us, as certified by the Colombian Banking Superintendence or the entity replacing it for said purpose.

  
 This Document will be ruled by the Rules and Uniform Uses Regarding the
Documentary Credits (Last Revision) published by the International Chamber of Commerce (CCI). 
  

	
	 
	
	  
	 Signature of the Legal Representative of the Issuer Bank

  
  

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 TABLE OF CONTENTS 
  

			
	 CLAUSE 1 – DEFINITIONS
	  	2
		
	 CLAUSE 2 – PURPOSE
	  	3
		
	 CLAUSE 3 – TECHNICAL EVALUATION AREA
	  	4
		
	 CLAUSE 4 – PERIOD OF CONTRACT
	  	5
		
	 CLAUSE 5 – TECHNICAL EVALUATION PROGRAM
	  	5
		
	 CLAUSE 6 – THE EVALUATOR’S RIGHTS
	  	6
		
	 CLAUSE 9 – ANH OBLIGATIONS
	  	9
		
	9.1. Confidentiality: AHN agrees that all data and information produced, obtained or interpreted by THE EVALUATOR as a result of the operations and this Contract are considered to be strictly
confidential	  	9
		
	 CLAUSE 10 – INFORMATION AND CONFIDENTIALITY
	  	10
		
	Without prejudice as to the obligations of THE EVALUATOR EVALUADOR hereunder, the ANH acknowledges the risk of errors inherent to the acquisition, processing and interpretation of the
information delivered. THE EVALUATOR shall have no responsibility with respect to the use that ANH gives to this information.	  	11
		
	 CLAUSE 11 – GUARANTEES AND INSURANCE
	  	11
		
	 CLAUSE 12 – ENVIRONMENT
	  	12
		
	 CLAUSE 13 – RESPONSIBILITIES
	  	13
		
	 CLAUSE 15 – TERMINATION
	  	15
		
	 CLAUSE 16 – SPOKESPERSON
	  	17
		
	 CLAUSE 18 – PAYMENTS AND CURRENCY
	  	19
		
	 CLAUSE 19 – APPLICABLE LAW
	  	19
		
	 CLAUSE 20 – TAXES
	  	20
		
	 CLAUSE 21 – SERVICE OF NOTICE AND COMMUNICATIONS
	  	20
		
	 CLAUSE 22 – DOCUMENTS OF THE CONTRACT
	  	20
		
	 CLAUSE 23 – LANGUAGE
	  	20
		
	 CLAUSE 24 – FORMALIZATION
	  	20
		
	 ANNEX “A” – CONTRACTED AREA
	  	21
		
	 Table of Data and Results for the VALLE LUNAR Sector
	  	22
		
	 ANNEX TO THE TECHNICAL EVALUATION CONTRACT OF
	  	24
		
	 ANNEX “C” – LETTER OF CREDIT FORM
	  	25
		
	 ANNEX TO THE “VALLE LUNAR” TECHNICAL EVALUATION AGREEMENT
	  	25

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