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CAMAC Energy, Inc.: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

EXECUTION VERSION 

PURCHASE AND CONTINUATION AGREEMENT 

BY AND AMONG 

CAMAC ENERGY INC. 

CAMAC PETROLEUM LIMITED 

CAMAC ENERGY HOLDINGS LIMITED 

ALLIED ENERGY PLC 

AND 

CAMAC INTERNATIONAL (NIGERIA) LIMITED 

Dated: December 10, 2010 

TABLE OF CONTENTS 

	ARTICLE I CONTRACT RIGHTS
    	2 
	Section 1.1 	Oyo Field 	2 
	Section 1.2 	The Contract Rights 	2 
	Section 1.3 	No Assumption of Liabilities 	3 
	ARTICLE II CLOSING
    	3 
	Section 2.1 	Closing 	3 
	Section 2.2 	Deliveries of the Parties 	3 
	ARTICLE III CONSIDERATION AND
      MILESTONES 	3 
	Section 3.1 	Closing Cash Consideration 	3 
	Section 3.2 	Reversion of Contract Rights 	4 
	Section 3.3 	Value of Consideration Shares
    	5 
	ARTICLE IV REPRESENTATIONS AND
      WARRANTIES OF THE CAMAC PARTIES 	 5 
	Section 4.1 	Organization and Standing 	5 
	Section 4.2 	Power and Authority 	5 
	Section 4.3 	No Conflicts 	6 
	Section 4.4 	OML 120/121 and OML Related Agreements 	6 
	Section 4.5 	Litigation 	8 
	Section 4.6 	Consents and Approvals 	8 
	Section 4.7 	Licenses, Permits, Etc 	8 
	Section 4.8 	Material Contracts and Commitments 	8 
	Section 4.9 	Taxes 	8 
	Section 4.10 	Brokers; Schedule of Fees and Expenses 	9 
	Section 4.11 	Foreign Corrupt Practices 	9 
	Section 4.12 	Money Laundering Laws 	9 
	Section 4.13 	OFAC 	10 
	Section 4.14 	Environmental Matters 	10 
	Section 4.15 	Bankruptcy 	11 
	ARTICLE V REPRESENTATIONS AND
      WARRANTIES OF THE CEI PARTIES 	11 
	Section 5.1 	Organization and Standing 	11 
	Section 5.2 	Organizational Documents 	11 
	Section 5.3 	Power and Authority 	12 
	Section 5.4 	No Conflicts 	12 
	Section 5.5 	[Intentionally Omitted] 	12 
	Section 5.6 	Capitalization 	12 
	Section 5.7 	Consideration Shares 	14 
	Section 5.8 	Litigation 	14 
	Section 5.9 	Consents and Approvals 	14 
	Section 5.10 	Brokers; Schedule of Fees and Expenses 	15 
	Section 5.11 	Financial Statements;
      Undisclosed Liabilities. 	15 
	Section 5.12 	[Intentionally Omitted] 	16 

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	Section 5.13 	Foreign Corrupt Practices 	16 
	Section 5.14 	Money Laundering Laws 	16 
	Section 5.15 	OFAC 	16 
	Section 5.16 	Environmental Matters 	16 
	Section 5.17 	Taxes 	17 
	Section 5.18 	Title 	18 
	Section 5.19 	[Intentionally Omitted] 	18 
	Section 5.20 	SEC Reports 	18 
	Section 5.21 	Investment Company 	18 
	ARTICLE VI COVENANTS OF THE CAMAC
      PARTIES 	19 
	Section 6.1 	General Conduct of Business 	19 
	Section 6.2 	Notice of CAMAC Material Adverse Effect 	19 
	Section 6.3 	Consultation; Compliance 	20 
	Section 6.4 	CEI Consent Required 	20 
	Section 6.5 	Related Tax 	20 
	Section 6.6 	Access to Information 	21 
	Section 6.7 	Exclusivity; No Other
      Negotiations 	21 
	Section 6.8 	Fulfillment of Conditions 	22 
	Section 6.9 	Regulatory and Other
      Authorizations; Notices and Consents 	23 
	Section 6.10 	PSC Obligations 	23 
	ARTICLE VII COVENANTS
      OF THE CEI PARTIES 	23 
	Section 7.1 	[Intentionally Omitted] 	23 
	Section 7.2 	Notice of CEI Material Adverse
      Effect 	23 
	Section 7.3 	CAMAC Consent Required 	23 
	Section 7.4 	Related Tax 	24 
	Section 7.5 	Fulfillment of Conditions 	24 
	Section 7.6 	Regulatory and Other
      Authorizations; Notices and Consents 	25 
	Section 7.7 	Consideration Shares 	25 
	Section 7.8 	OML Related Agreements 	25 
	ARTICLE VIII ADDITIONAL AGREEMENTS AND
      COVENANTS 	25 
	Section 8.1 	Disclosure Schedules 	25 
	Section 8.2 	Confidentiality 	26 
	Section 8.3 	Public Announcements 	26 
	Section 8.4 	Fees and Expenses 	27 
	Section 8.5 	Certain Disclaimers 	27 
	Section 8.6 	Further Assurances 	28 
	ARTICLE IX CONDITIONS
      TO CLOSING 	28 
	Section 9.1 	Joint Conditions Precedent 	28 
	Section 9.2 	CAMAC Parties Conditions
      Precedent 	28 
	Section 9.3 	CEI Conditions Precedent 	30 
	ARTICLE X
      INDEMNIFICATION 	31 
	Section 10.1 	Survival 	31 

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	Section 10.2 	Indemnification by the CAMAC
      Parties 	31 
	Section 10.3 	Indemnification by CEI 	32 
	Section 10.4 	Limitations on Indemnity 	33 
	Section 10.5 	Defense of Third Party Claims 	34 
	Section 10.6 	Determining Damages 	34 
	Section 10.7 	Right of Setoff 	35 
	Section 10.8 	Limitation on Recourse; No
      Third Party Beneficiaries 	35 
	ARTICLE XI TERMINATION 	36 
	Section 11.1 	Methods of Termination 	36 
	Section 11.2 	Effect of Termination 	36 
	Section 11.3 	Termination Recovery and Fee
	37 
	ARTICLE XII MISCELLANEOUS 	37 
	Section 12.1 	Notices 	37 
	Section 12.2 	Amendments; Waivers; No Additional
      Consideration 	37 
	Section 12.3 	Interpretation 	38 
	Section 12.4 	Severability 	38 
	Section 12.5 	Counterparts; Facsimile
      Execution 	38 
	Section 12.6 	Entire Agreement; Third Party Beneficiaries 	38 
	Section 12.7 	Governing Law 	38 
	Section 12.8 	Dispute Resolution 	39 
	Section 12.9 	Assignment 	39 
	Section 12.10 	Publicity 	39 

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	ANNEX 
	Annex A 	Definitions 
	  	  
	  	  
	SCHEDULES
  
	Schedule A 	CAMAC Disclosure Schedule 
	Schedule B 	CEI Disclosure Schedule
  

iv

PURCHASE AND CONTINUATION AGREEMENT 

THIS PURCHASE AND CONTINUATION
AGREEMENT, dated as of December 10, 2010 (this “Agreement”), is
entered into by and among CAMAC ENERGY INC. (formerly, Pacific Asia Petroleum,
Inc.), a Delaware corporation (“CEI”), CAMAC PETROLEUM LIMITED, a
company incorporated in the Federal Republic of Nigeria and a wholly-owned
subsidiary of CEI (“CPL,” and together with CEI, the “CEI
Parties”), CAMAC ENERGY HOLDINGS LIMITED, a Cayman Islands company
(“CEHL”), ALLIED ENERGY PLC (formerly, Allied Energy Resources
Nigeria Limited), a company incorporated in the Federal Republic of Nigeria and
a wholly-owned subsidiary of CEHL (“Allied”), and CAMAC
INTERNATIONAL (NIGERIA) LIMITED, a company incorporated in the Federal Republic
of Nigeria and a wholly-owned subsidiary of CEHL (“CINL,” and
together with CEHL and Allied, the “CAMAC Parties”). Each of the
Parties to this Agreement is individually referred to herein as a
“Party” and collectively as the “Parties.”
Capitalized terms used herein but not otherwise defined herein shall have the
meanings ascribed to such terms in Annex A hereto. 

RECITALS 

WHEREAS, on June 3, 1992, Allied
was awarded Oil Prospecting License 210 (“OPL 210”) by the
Federal Republic of Nigeria, 2.5% of the interest in which Allied subsequently
assigned to CINL, on September 30, 1992 pursuant to an assignment agreement by
and between Allied and CINL (the “Allied Assignment”); and 

WHEREAS, on August 28, 2002,
Allied and CINL were granted Oil Mining Lease 120 and Oil Mining Lease 121
(“OML 120/121”) by the Federal Republic of Nigeria, with
respect to OPL 210, for a term of 20 years commencing on February 27, 2001.
Pursuant to a Deed of Assignment, dated July 22, 2005, Allied and CINL assigned
to the Nigerian AGIP Exploration Limited (the “NAE”), a 40%
participating interest in OML 120/121, with the remaining 60% participating
interest in OML 120/121 being retained by Allied and CINL (the “NAE
Assignment”); and 

WHEREAS, on July 22, 2005,
Allied, CINL and the NAE entered into a Production Sharing Contract (the
“PSC”) setting out the terms of agreement in relation to
petroleum operations in the area covered by OML 120/121; and 

WHEREAS, on April 7, 2010, the CEI Parties acquired from Allied and CINL all of the CAMAC Parties’ interest in
the PSC with respect to that certain oilfield asset known as the Oyo Field (as
defined in the Oyo Purchase Agreement), that is the subject of Oil Mining Lease
120 (“OML 120”), as well as the joint and several obligations of
CINL and Allied to the NAE under the PSC in connection with the Oyo Field; and

WHEREAS, Allied and CINL retained
all right, title and interest in and to the PSC with respect to OML 120/121,
other than with respect to the Oyo Field; and 

WHEREAS, on October 11, 2010, CEI
and the CAMAC Parties entered into a Heads of Agreement (the
“HOA”) regarding CEI’s intention to enter into the proposed
transactions pursuant to which CEI would acquire from CEHL: (i) all of the
interest currently held by Allied and CINL in the PSC with respect to OML 120/121 and (ii)
the joint and several obligations of CINL and Allied to NAE under the PSC,
subject to those rights and obligations that are, by Law, required to remain
with Allied, in each case other than the contract rights granted under the Oyo
Purchase Agreement (the foregoing interests and obligations shall be referred to
herein as the “Contract Rights”); and 

WHEREAS, concurrently with the
Closing (as defined below), the Parties hereto will enter into, or cause their
affiliates to enter into, as applicable, certain other agreements contemplated
by this Agreement, including but not limited to a Novation Agreement by and
among Allied, CINL, CPL and NAE (the “Novation Agreement”), , the
Oyo Field Agreement, dated April 7, 2010, by and among CPL, CEHL and Allied,
amended and restated to remove certain indemnities with respect to Non-Oyo
operating costs (as defined therein) and renamed the “OML 120/121 Management
Agreement” (the “OML 120/121 Management Agreement”), and a
registration rights agreement with respect to the Consideration Shares between
CEI and the CAMAC Parties (the “Registration Rights Agreement”);
and 

WHEREAS, the boards of directors
of each of CEHL, CINL, Allied, CEI and CPL have considered and have declared
advisable and in the best interest of their respective entity this Agreement,
the Novation Agreement, the OML 120/121 Management Agreement and the
Registration Rights Agreement (the “Transaction Documents”) to
which such entity is or will be a party and the transactions contemplated hereby
and thereby (together, the “Transactions”). 

NOW, THEREFORE, in consideration
of the foregoing and the respective representations, warranties, covenants and
agreements set forth herein, and intending to be legally bound hereby, the
Parties agree as follows: 

ARTICLE I 

CONTRACT RIGHTS 

Section 1.1 

 Oyo Field. The
Parties agree and acknowledge that the description set forth in Schedule
A attached to the Oyo Purchase Agreement is the “Oyo Field”
for purposes of the Transaction Documents and the Transactions. 

Section 1.2 

 The Contract
Rights. Subject to the terms and conditions contained in the Transaction
Documents, each of the CEI Parties agrees to acquire, and the CAMAC Parties
agree to transfer, all of the rights, title and interest of the CAMAC Parties’
in and to the Contract Rights. The transfer of the Contract Rights shall be made
pursuant to the Novation Agreement that novates all of Allied’s and CINL’s
right, title and interest in and to the PSC with respect to OML 120/121 (other
than the contract rights granted under the Oyo Purchase Agreement), together
with all of Allied’s and CINL’s liabilities and obligations to NAE under the PSC
in relation to OML 120/121, which shall be effective on the effective date set
forth in the Novation Agreement (the “Novation Date”). 

Section 1.3 

 No Assumption of
Liabilities. Except as otherwise provided in the Transaction Documents, the
CEI Parties do not assume, and the CEI Parties expressly disclaim any and all
liabilities, costs, debts, claims and obligations of the CAMAC Parties relating
to the Contract Rights. Except as otherwise provided in the
Transaction Documents, neither of the CEI Parties shall have any obligation to
the CAMAC Parties hereunder or thereunder prior to the Closing Date. 

2 

ARTICLE II 

CLOSING 

Section 2.1 

 Closing. The
closing of the Transactions (the “Closing”) shall take place at
the offices of Vinson & Elkins L.L.P., 1001 Fannin Street, Suite 2500,
Houston, Texas 77002, commencing at 9:00 a.m., local time, on the third business
day following the satisfaction or waiver of all conditions and obligations of
the Parties to consummate the Transactions (other than conditions and
obligations with respect to actions that the respective Parties will take at
Closing), or on such other date and at such other time as the Parties may
mutually determine (the “Closing Date”). 

Section 2.2 

 Deliveries of the
Parties. At the Closing, (a) the CAMAC Parties shall deliver or cause to be
delivered to the CEI Parties, the certificates, opinions, instruments,
agreements and documents required by Article IX and (b) the CEI Parties shall
deliver or cause to be delivered to the CAMAC Parties, the certificates,
opinions, instruments, agreements and documents required by Article IX.

ARTICLE III 

CONSIDERATION AND MILESTONES 

Section 3.1 

 Closing Cash
Consideration. Within fifteen (15) days after the Closing Date, CEI shall
pay (or cause to be paid) to Allied USD $5,000,000 (the “Closing Cash
Consideration”) to an account designated by CAMAC at least two (2) days
prior to the date such Closing Cash Consideration is due. Following payment by
CEI to Allied of the Closing Cash Consideration, and subject to the specified
Milestones (defined below) and the payment of the Consideration (defined below),
the CEI Parties shall retain the Contract Rights under the following terms and
conditions: 

(a)

 First Milestone. Upon
“commencement of drilling” of the first well outside of the Oyo Field under the
PSC, CEI shall retain the Contract Rights (the “First Milestone”),
subject to the payment by CEI to Allied of an additional USD $5,000,000 (either
in cash, or at Allied’s option, in shares of Common Stock (“Consideration
Shares”)) within fifteen (15) days after the commencement of drilling
(the “First Milestone Consideration”). For purposes of this
Section 3.1(a), “commencement of drilling” shall mean “spudding”
the well with a rig capable of drilling the well to its total measured depth.

(b)

 Second Milestone. Upon
a “discovery” outside of the Oyo Field under the PSC, CEI shall retain the
Contract Rights (the “Second Milestone”), subject to the payment
by CEI to Allied of an additional USD $5,000,000 (either in cash, or at Allied’s
option, in Consideration Shares) within fifteen (15) days after the discovery of Hydrocarbons (as defined in the PSC) outside of the Oyo Field
(the “Second Milestone Consideration”). For purposes of this
Section 3.1(b), a “discovery” shall mean the discovery of an
accumulation of Hydrocarbons in sufficient quantities to warrant the commercial
development thereof whose existence until that moment was unproven by drilling.

3 

(c) 

 Third Milestone. Upon
the approval by the Management Committee (as defined in the PSC) of a
Development Plan (as defined in the PSC) pursuant to the PSC with respect to the
development of a non-Oyo Field area of OML 120/121 under the PSC, as approved by
CEI, CEI shall retain the Contract Rights (the “Third Milestone”),
subject to the payment by CEI to Allied of an additional USD $20,000,000 (either
in cash, or at Allied’s option, in Consideration Shares) within fifteen (15)
days after the approval by the Management Committee of such Development Plan
(the “Third Milestone Consideration” ). 

(d) 

 Fourth Milestone. Upon
commencement of Hydrocarbon production in commercial quantities outside of the
Oyo Field under the PSC, CEI shall retain the Contract Rights (with no
additional milestones or consideration required thereafter following payment in
full of the Fourth Milestone Consideration, as defined below) (the “Fourth
Milestone,” and together with the First Milestone, the Second Milestone,
and the Third Milestone, the “Milestones”), subject to the payment
by CEI to Allied, at Allied’s option, of: (i) an additional USD $25,000,000 in
Consideration Shares within fifteen (15) days after such commencement of
production, or (ii) an additional USD $25,000,000 in cash through payment of 50%
of CEI’s net cash flows received from non-Oyo Field production under the PSC
within fifteen (15) days after receipt of such net cash flows from non-Oyo Field
production under the PSC until the payments equal $25,000,000 in the aggregate
(the “Fourth Milestone Consideration,” and together with the
Closing Cash Consideration, First Milestone Consideration, Second Milestone
Consideration, and Third Milestone Consideration, the
“Consideration”). 

Section 3.2 

 Reversion of
Contract Rights. Notwithstanding anything to the contrary in this Agreement,
CPL shall continue to retain all Contract Rights unless and until CEI fails to
make any Milestone Payment when due, in which case, subject to the following
proviso, all of the Contract Rights will revert back to CAMAC automatically
without any compensation, obligation or liability to CEI, and Allied shall
retain all of the Consideration paid by CEI to Allied pursuant to this
Agreement; provided, however, that (i) such reversion shall not occur unless
Allied notifies CEI in writing that CEI has failed to make the applicable
Milestone Payment, and CEI fails to make such payment within thirty (30) days
after receipt of such notice, and (ii) CEI may dispute in good faith the
occurrence of any Milestone by written notice to Allied prior to the date that
such reversion would otherwise occur, and any Milestone Payment with respect to
which the underlying Milestone is disputed by CEI shall not be due and payable
until fifteen (15) days after the resolution of such dispute pursuant to
Section 12.18 (if determined to be due and payable). If such reversion
occurs, Allied, CINL and CPL shall execute a novation agreement, and shall use
their reasonable efforts to cause any other required party to execute a novation
agreement, to effect such reversion. 

4 

Section 3.3 

 Value of
Consideration Shares. For purposes of this Agreement, the per share value of
each Consideration Share shall be calculated as the volume-weighted average
closing sale price of Common Stock (as quoted by NYSE Amex or other national
exchange that CEI may be listed upon at such time) over the trailing thirty (30)
trading-days measured back from the first business day prior to the occurrence
of the applicable Milestone. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE CAMAC
PARTIES 

Except as set forth in the CAMAC
Disclosure Schedule attached hereto as Schedule A, each of the CAMAC
Parties jointly and severally represents and warrants to the CEI Parties as of
the date hereof, and as of the Closing Date, as follows: 

Section 4.1 

 Organization and
Standing. Each of the CAMAC Parties is duly organized, validly existing and
in good standing under the laws of its respective jurisdiction of formation.
Each of the CAMAC Parties is duly qualified to do business in each of the
jurisdictions in which the property owned, leased or operated by such Party or
the nature of the business conducted by such Party requires qualification,
except where the failure to so qualify would not reasonably be expected to,
individually or in the aggregate, result in a CAMAC Material Adverse Effect.
Each of the CAMAC Parties has all requisite power and authority to own, lease
and operate OML 120/121 and to carry on its business as now being conducted
pursuant to the OML Related Agreements. The CAMAC Parties have made available to
CEI true and complete copies of the CAMAC Constituent Instruments. 

Section 4.2 

 Power and
Authority. Each of the CAMAC Parties has all requisite power and authority
to execute, deliver and perform its obligations under the Transaction Documents
to which it is a party and to consummate the Transactions. The execution,
delivery and performance by the CAMAC Parties of the HOA and the Transaction
Documents and the consummation of the Transactions have been duly authorized and
approved by the boards of directors or other governing body of each of the CAMAC
Parties, and such authorizations and approvals remain in effect and have not
been rescinded or qualified in any respect, and no other proceedings on the part
of any such entities are necessary to authorize the Transaction Documents or to
permit the consummation of the Transactions. Each of the Transaction Documents
to which it is a party has been or, at the Closing will be, duly executed and
delivered by such CAMAC Party and constitutes or, at the Closing will
constitute, the valid and binding obligation of such Party, enforceable against
such Party in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
transfer or similar laws of general application now or hereafter in effect
affecting the rights and remedies of creditors and by general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in
equity). 

Section 4.3 

 No Conflicts.
Neither the execution, delivery and performance of the Transaction Documents by
each of the CAMAC Parties nor the consummation of the Transactions will, (a)
conflict with, or result in any violation of or default (with or without notice
or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or loss of a material benefit
under, or result in the creation of any Lien upon any of the Contract Rights under any provision of: (i) any
CAMAC Constituent Instrument; (ii) any material contract to which any of the
CAMAC Parties is a party or to or by which it (or any of its assets and
properties) is subject or bound; (iii) any applicable Law; or (iv) any Material
Permit of any of the CAMAC Parties; (b) result in any material Judgment
applicable to any of the Contract Rights or (c) terminate or modify, or give any
third party the right to terminate or modify, the provisions or terms of any of
the OML Related Agreements. 

5 

Section 4.4

 OML 120/121 and OML Related Agreements. 

(a) 

Each of the OML 120/121, the
Allied Assignment, the NAE Assignment and the PSC (the “OML Related
Agreements”) are valid, binding and in full force and effect in all
material respects and enforceable by and against the CAMAC Parties, as
applicable, in accordance with its terms, except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or similar laws of general application now or hereafter in
effect affecting the rights and remedies of creditors and by general principles
of equity (regardless of whether enforcement is sought in a proceeding at law or
in equity). None of the CAMAC Parties is in violation of, or in default under
(nor does there exist any condition which upon the passage of time or the giving
of notice would cause such a violation of, or default under) any of the OML
Related Agreements to which any CAMAC Party is a party, except for violations or
defaults that, individually or in the aggregate, would not reasonably be
expected to result in a CAMAC Material Adverse Effect; and, to the CAMAC
Parties’ Knowledge, no other Person has violated or breached, or committed any
default under, any OML Related Agreement, except for violations, breaches and
defaults that, individually or in the aggregate, have not had and would not
reasonably be expected to have a CAMAC Material Adverse Effect. No party to an
OML Related Agreement has terminated or, to the CAMAC Parties’ Knowledge,
threatened termination of any OML Related Agreement. To the CAMAC Parties’
Knowledge, no other party to any of the OML Related Agreements is in material
default thereunder, and none of the CAMAC Parties has received any written
notice regarding any actual or possible violation or breach of, or default
under, any OML Related Agreement, except, in each such case, for defaults,
acceleration rights, termination rights and other rights that, individually or
in the aggregate, have not had and would not reasonably be expected to have a
CAMAC Material Adverse Effect. No event or claim of “force majeure” has occurred
under any of the OML Related Agreements. There have been no written claims by
any Governmental Authority threatening termination of the OML Related
Agreements. To the CAMAC Parties’ Knowledge, the OML Related Agreements do not
infringe upon the rights of any third party. 

(b) 

OML 120/121 contains the
entirety of the obligation of the CAMAC Parties to the Government of Nigeria
with respect to the interests therein that are subject to the PSC. Other than
the Oyo Purchase Agreement and the transaction documents executed in connection
with the Oyo Purchase Agreement, no CAMAC Party is a party to any Contract
relating to or affecting OML 120/121 or the Contract Rights other than the OML
Related Agreements. 

6 

(c) 

There are no claims, actions,
suits, audits, demands, arbitrations, mediations, formal investigations or
proceedings pending, or, to the CAMAC Parties’ Knowledge, threatened, before any
Governmental Authority, mediator or arbitrator with respect to OML 120/121 or
the OML Related Agreements. 

(d) 

No work program or operations
or funding commitment exists or has been proposed by the CAMAC Parties or any
other party to any of the OML Related Agreements under such agreements, except
as has been disclosed to the CEI Parties in writing or as set forth in the PSC.
Upon consummation of the Transactions, neither CEI nor CPL will be subject to
any obligation to pay any other party any net profits interests, production
payments, royalties or other fixed or contingent amounts based upon the sale,
license, distribution or other use or exploitation of OML 120/121, except as set
forth in the OML Related Agreements, the Transaction Documents, or under
applicable Law. There are no bonds, letters of credit, guarantees, deposits or
other security furnished by the CAMAC Parties or any Affiliate of CAMAC Parties
relating to OML 120/121 or the OML Related Agreements that will require
expenditures in excess of $100,000. Except as set forth in the Oyo Purchase
Agreement and the transaction documents executed in connection with the Oyo
Purchase Agreement (including the Right of First Refusal Agreement, dated April
7, 2010, by and between CEI and the CAMAC Parties), the interests of the CAMAC
Parties in the PSC and OML 120/121 are not subject to any preferential rights to
purchase, rights of first opportunity or similar rights, or any required third
party consents to assignment that may be applicable to the Transactions other
than as may be specified in the OML Related Agreements. 

(e) 

CPL shall not be subject to
any limitations, obligations or restrictions with regard to the sale, license,
distribution or other transfer or exploitation of the Contract Rights, except as
set forth in the Transaction Documents, the OML Related Agreements, under
applicable stock exchange rules or applicable Law. 

(f) 

Except as set forth in the
Transaction Documents or the OML Related Agreements: (i) the transfer of the
Contract Rights, shall constitute a transfer of all of the Contract Rights, free
and clear of: (A) all Liens on the Contract Rights and (B) any material adverse
contractual obligations, and (ii) the CAMAC Parties reserve no rights to market
or otherwise transfer any interest in and to the Contract Rights. For the
avoidance of doubt, upon the consummation of the Transactions neither CEI nor
CPL shall have any obligation to any CAMAC Party to support, maintain, offer, or
do any other act relating to OML 120/121 or the PSC except as set forth in the
Transaction Documents or the OML Related Agreements. 

Section 4.5

 Litigation.
There is no private or governmental action, suit, inquiry, notice of violation,
claim, arbitration, audit, proceeding or investigation (“Action”)
pending or threatened in writing to the CAMAC Parties against any of the CAMAC
Parties or, to the CAMAC Parties’ Knowledge, any of the other parties to the OML
Related Agreements, before or by any Governmental Authority which (a) adversely
affects or challenges the legality, validity or enforceability of this Agreement
or the OML Related Agreements (b) could, if there were an unfavorable decision,
individually or in the aggregate, have or would reasonably be expected to have a
CAMAC Material Adverse Effect. As of the date of this Agreement, there is no judgment imposed upon any of the CAMAC Parties or, to the CAMAC
Parties’ Knowledge, any of the parties to the OML Related Agreements, that would
prevent, enjoin, alter or materially delay any of the Transactions, or that
would reasonably be expected to have a CAMAC Material Adverse Effect.

7 

Section 4.6 

 Consents and
Approvals. No consent, approval, license, permit, order or authorization of,
or registration, declaration or filing with any Governmental Authority
(“Consent”) to which any of the OML Related Agreements are subject
is required to be obtained or made by any of the CAMAC Parties, in connection
with the execution, delivery and performance of the Transaction Documents or the
consummation of the Transactions, except for (a) such Consents as may be
required under applicable state securities laws and the securities laws of any
foreign country; and (b) such other Consents which, if not obtained or made,
would not reasonably be expected to have a CAMAC Material Adverse Effect. In
addition, no consent of any third party is required to be obtained by any of the
CAMAC Parties in order to transfer the Contract Rights pursuant to the Novation
Agreement. 

Section 4.7 

 Licenses, Permits,
Etc. The CAMAC Parties possess or will possess prior to the Closing all
licenses, franchises, permits and other governmental authorizations held by them
that are material in connection with business related to the OML Related
Agreements (the “Material Permits”). All such Material Permits are
in full force and effect. 

Section 4.8 

 Material Contracts
and Commitments. Other than the OML Related Agreements and
the Transaction Documents, there are no material contracts, agreements or other
instruments to which any CAMAC Party or any affiliate of a CAMAC Party is a
party relating to OML 120/121 or the PSC that will be binding on CEI or CPL
after the consummation of the Transactions. 

Section 4.9 

 Taxes. Each of
the CAMAC Parties have timely, or have caused to be timely filed on their
behalf, all Tax Returns required by Law to be filed by or with respect to it in
connection with the Contract Rights, the OML Related Agreements, either
separately or as a member of group of corporations. All such Tax Returns filed
by (or that include on a consolidated basis) any of the CAMAC Parties were (and,
as to a Tax Return not filed as of the date hereof, will be) in all respects
true, complete and accurate, except to the extent any failure to file or any
inaccuracies in any filed Tax Returns, individually or in the aggregate, have
not and would not reasonably be expected to have a CAMAC Material Adverse
Effect. There are no unpaid Taxes in respect of the Contract Rights, the OML
Related Agreements claimed to be due by any Governmental Authority in charge of
taxation of any jurisdiction, nor any claim for additional Taxes in respect to
the Contract Rights, the OML Related Agreements for any period for which Tax
Returns have been filed, except to the extent any failure to file or any
inaccuracies in any filed Tax Returns, individually or in the aggregate, have
not and would not reasonably be expected to have a CAMAC Material Adverse
Effect. Any deficiencies proposed as a result of any governmental audits or such
Tax Returns have been paid or settled, and there are no present disputes as to
Taxes in respect to the Contract Rights, the OML Related Agreements payable by
any of the CAMAC Parties. There are no tax liens against any of the Contract
Rights and, to the CAMAC Parties’ Knowledge, there is no basis for any such tax
lien. 

8 

Section 4.10 

 Brokers; Schedule
of Fees and Expenses. No broker, investment banker, financial advisor or
other Person is entitled to any broker’s, finder’s, financial advisor’s or other
similar fee or commission in connection with this Agreement or the Transactions
based upon arrangements made by or on behalf of the CAMAC Parties. 

Section 4.11 

 Foreign Corrupt
Practices. Neither the CAMAC Parties, nor to the CAMAC Parties’ Knowledge,
any of their respective Representatives, has, in the course of its actions for,
or on behalf of, the CAMAC Parties, directly or indirectly, (a) used any
corporate funds for any unlawful contribution, gift, entertainment or other
unlawful expenses relating to political activity; (b) made any direct or
indirect unlawful payment to any Governmental Authority or any foreign or
domestic government official or employee from corporate funds; (c) violated or
is in violation of any provision of the U.S. Foreign Corrupt Practices Act of
1977, as amended, and the rules and regulations thereunder (the
“FCPA”); or (d) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment in connection with the operations of
CAMAC Parties to any foreign or domestic government official or employee,
except, in the case of clauses (a) and (b) above, any such items that,
individually or in the aggregate, have not had and would not reasonably be
expected to have a CAMAC Material Adverse Effect. 

Section 4.12 

 Money Laundering
Laws. To the CAMAC Parties’ Knowledge, none of the CAMAC Parties has
violated any money laundering statute or any rules and regulations relating to
money laundering statutes (collectively, the “Money Laundering
Laws”) and no proceeding involving any CAMAC Party with respect to the
Money Laundering Laws is pending or is, to the CAMAC Parties’ Knowledge,
threatened. 

Section 4.13 

 OFAC. None of
the CAMAC Parties, any director or officer of the CAMAC Parties, or, to the
CAMAC Parties’ Knowledge, any of their respective Representatives is currently
identified on the specially designated nationals or other blocked person list or
otherwise currently subject to any U.S. sanctions administered by the Office of
Foreign Asset Control of the U.S. Treasury Department (“OFAC”);
and the CAMAC Parties have not, directly or indirectly, used any funds, or
loaned, contributed or otherwise made available such funds to any Subsidiary,
joint venture partner or other Person, in connection with any sales or
operations in Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned
by OFAC or for the purpose of financing the activities of any Person currently
subject to, or otherwise in violation of, any U.S. sanctions administered by
OFAC. 

Section 4.14 

 Environmental Matters. With respect to OML
120/121: 

(a) 

The CAMAC Parties and all
associated operations are, and during the relevant time periods specified in all
applicable statutes of limitations, have been in compliance with Environmental
Laws in all material respects; 

(b) 

The CAMAC Parties have all
Environmental Authorizations required for their operations as presently
conducted, all such Environmental Authorizations are in the name of the proper
entity and in full force and effect, and the CAMAC Parties are in compliance in
all material respects with such Environmental Authorizations; 

9 

(c) 

The CAMAC Parties are not
subject to any pending or, to the CAMAC Parties’ Knowledge, threatened Action
pursuant to Environmental Laws, nor has any CAMAC Party received any written
notice of violation, noncompliance, or enforcement or any written notice of
investigation or remediation from any Governmental Authority pursuant to
Environmental Laws; 

(d) 

There has been no Release of
Hazardous Materials at, on, under or from the area covered by OML 120/121 in
violation of any Environmental Laws or in a manner that could give rise to any
Environmental Liabilities or any other remedial or corrective action obligations
pursuant to Environmental Laws; 

(e) 

To the CAMAC Parties’
Knowledge, there has been no exposure of any Person or property to any Hazardous
Materials that could reasonably be expected to form the basis for any
Environmental Liabilities or any Action for other Damages or compensation; 

(f) 

The CAMAC Parties have made
available for inspection by the CEI Parties complete and correct copies of all
environmental assessment and audit reports and studies and all correspondence
addressing environmental obligations that are in the possession or control of
the CAMAC Parties; and 

(g) 

Notwithstanding any other
provision of this Agreement, the representations and warranties made in this
Section 4.14 are the sole and exclusive representations and warranties made in
this Agreement by the CAMAC Parties with respect to environmental matters. 

Section 4.15 

 Bankruptcy.
The CAMAC Parties do not contemplate filing for relief under the provision of
any applicable bankruptcy code. The Contract Rights are not the proceeds of, nor
are they intended for, or being transferred in, the furtherance of any
concealment of assets or any effort by conspiracy or otherwise to defeat,
defraud or otherwise evade, any party or the court in any bankruptcy proceeding,
a receiver, a custodian, a trustee, a marshall, or any other officer of the
court or government or regulatory official of any kind. 

ARTICLE V 

REPRESENTATIONS AND WARRANTIES OF THE CEI
PARTIES 

Except as set forth in the CEI
Disclosure Schedule, attached hereto as Schedule B, each of the CEI
Parties, with respect to themselves and their respective Subsidiaries, jointly
and severally represents and warrants to the CAMAC Parties as of the date
hereof, and as of the Closing Date, as follows: 

Section 5.1 

 Organization and
Standing. Each of the CEI Parties and their respective Subsidiaries is duly
organized, validly existing and in good standing under the laws of its
respective jurisdiction of formation. Each of the CEI Parties and their
respective Subsidiaries is duly qualified to do business in each of the
jurisdictions in which the property owned, leased or operated by it or the
nature of the business which it conducts requires qualification, except where
the failure to so qualify would not reasonably be expected to, individually or
in the aggregate, result in a CEI Material Adverse Effect. Each of the CEI
Parties and their respective Subsidiaries has all requisite power and authority
to own, lease and operate its tangible assets and properties and to carry on its
business as now being conducted. The CEI Parties have delivered to the CAMAC
Parties true and complete copies of the CEI Constituent Instruments. 

10 

Section 5.2 

 Organizational
Documents. The CEI Parties have made available to CAMAC true and complete
copies of the CEI Constituent Instruments, in each case, as amended or restated
to date and presently in effect. Neither CEI nor any of its Subsidiaries is in
violation of any of the provisions of its CEI Constituent Documents. The minute
books and stock records of CEI heretofore made available to the CAMAC Parties
correctly and completely reflect in all material respects all actions taken at
all meetings of, or by written consents of, directors, managers and holders of
equity interests of CEI (including any analogous governing bodies thereof or
committees of governing bodies thereof). 

Section 5.3 

 Power and
Authority. Each of the CEI Parties and their respective Subsidiaries (and
their respective nominees) has all requisite power and authority to execute,
deliver and perform its obligations under the HOA and the Transaction Documents
to which it is a party and to consummate the Transactions. The execution,
delivery and performance by the CEI Parties of the Transaction Documents and the
consummation of the Transactions have been duly authorized and approved by the
boards of directors or other governing body of each of the CEI Parties and their
respective Subsidiaries, and such authorization and approval remains in effect
and has not been rescinded or qualified in any respect, and no other proceedings
on the part of any such entities are necessary to authorize the Transaction
Documents or to permit the consummation of the Transactions. Each of the
Transaction Documents to which any CEI Party is a party has been duly executed
and delivered by such CEI Party and constitutes or, at the Closing will
constitute, the valid and binding obligation of such Party, enforceable against
such Party in accordance with its terms, except as enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
transfer or similar laws of general application now or hereafter in effect
affecting the rights and remedies of creditors and by general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in
equity). 

Section 5.4 

 No Conflicts.
Neither the execution, delivery or performance of the Transaction Documents by
each of the CEI Parties will conflict with, or result in a breach of the terms,
conditions or provisions of, or constitute a default (with or without notice or
lapse of time, or both) under, or result in any violation of: (a) any of the CEI
Constituent Instruments or any material contract to which any CEI Party or their
respective Subsidiaries is a party, which would prevent or materially delay any
of the Transactions, or (b) any applicable Law to which any such CEI Party or
their respective Subsidiaries is subject, which would prevent or materially
delay any of the Transactions or the Transaction Documents. 

Section 5.5 

[Intentionally
Omitted]. 

Section 5.6 

Capitalization. The CEI Disclosure Schedule sets forth a correct and
complete description of the following: (i) all of the authorized Equity
Interests of the CEI Parties and each of its Subsidiaries and (ii) the amount of
outstanding Equity Interests of the CEI Parties and each of its Subsidiaries. No
Equity Interests of any CEI Party or any of its Subsidiaries are issued or outstanding or reserved for any
purpose. All of the outstanding Equity Interests of the CEI Parties and their
respective Subsidiaries are duly authorized, validly issued and fully paid and
nonassessable, and have not been issued in violation of (nor are any of the
authorized Equity Interests of a CEI Party or any of their respective
Subsidiaries is subject to) any preemptive or similar rights created by the CEI
Constituent Instruments or any Contract to which a CEI Party or their respective
Subsidiary is a party or bound. 

11 

There are no outstanding
securities, options, warrants or other rights (including registration rights),
agreements, arrangements or other Contracts to which a CEI Party or any of their
respective Subsidiaries is a party or is bound relating to the issued or
unissued Equity Interests of a CEI Party or any of their respective Subsidiaries
or obligating a CEI Party or any of their respective Subsidiaries to grant,
issue, deliver or sell, or cause to be granted, issued, delivered or sold, any
Equity Interests of a CEI Party or any of their respective Subsidiaries, by
sale, lease, license or otherwise. There are no obligations, contingent or
otherwise, of a CEI Party or any of their respective Subsidiaries to (i)
repurchase, redeem or otherwise acquire any Equity Interests of a CEI Party or
any of their respective Subsidiaries, (ii) dispose of any Equity Interests of a
CEI Party or any of their respective Subsidiaries or (iii) provide funds to, or
make any investment in (in the form of a loan, capital contribution or purchase
of Equity Interests or otherwise), or provide any guarantee with respect to the
obligations of, any other Person. No CEI Party or any of their respective
Subsidiaries directly or indirectly owns, has agreed to purchase or otherwise
acquire or holds any interest convertible into or exchangeable or exercisable
for, Equity Interests of any Person. There are no agreements, arrangements or
other Contracts (contingent or otherwise) to which a CEI Party or any of their
respective Subsidiaries is a party or otherwise bound pursuant to which any
Person is or may be entitled to receive any payment based on the revenues or
earnings, or calculated in accordance therewith, of a CEI Party or any of their
respective Subsidiaries. There are no voting trusts, proxies or other agreements
or understandings with respect to the voting of any Equity Interests of a CEI
Party or any of their respective Subsidiaries. There are no bonds, debentures,
notes or other indebtedness of a CEI Party or any of their respective
Subsidiaries having the right to vote (or convertible into, or exchangeable for,
securities having the right to vote) on any matters on which holders of Equity
Interests of a CEI Party or any of their respective Subsidiaries may vote. 

(i) None of the capital stock of
the CEI Parties or their Subsidiaries is subject to preemptive rights or any
other similar rights or any liens or encumbrances suffered or permitted by any
of them; (ii) there are no outstanding options, warrants, scrip, rights to
subscribe to, calls or commitments of any character whatsoever relating to, or
securities or rights convertible into, or exercisable or exchangeable for, any
capital stock of any of the CEI Parties or their Subsidiaries, or contracts,
commitments, understandings or arrangements by which any of the CEI Parties or
their Subsidiaries is or may become bound to issue additional capital stock of
any of the CEI Parties or their Subsidiaries or options, warrants, scrip, rights
to subscribe to, calls or commitments of any character whatsoever relating to,
or securities or rights convertible into, or exercisable or exchangeable for,
any capital stock of any of the CEI Parties or their Subsidiaries; (iii) there
are no outstanding debt securities, notes, credit agreements, credit facilities
or other agreements, documents or instruments evidencing indebtedness of any of
the CEI Parties or their Subsidiaries or by which any of them is or may become
bound which are required to be disclosed in any SEC Report (as defined below)
but not so disclosed in the SEC Reports, (iv) there are no agreements or
arrangements under which any of the CEI Parties or their Subsidiaries is
obligated to register the sale of any of their securities under the
Securities Act; (v) there are no outstanding securities or instruments of any of
the CEI Parties or their Subsidiaries which contain any redemption or similar
provisions, and there are no contracts, commitments, understandings or
arrangements by which any of them is or may become bound to redeem a security of
any of the CEI Parties or their Subsidiaries; (vi) there are no securities or
instruments containing anti-dilution or similar provisions that will be
triggered by the issuance or reservation of the Consideration Shares; (vii) CEI
does not have any stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or agreement. CEI has filed in its SEC Reports
with the SEC true, correct and complete copies of the form of all securities
convertible into, or exercisable or exchangeable for, shares of Common Stock;
(viii) none of the CEI Parties or their Subsidiaries have any liabilities or
obligations required to be disclosed in the SEC Reports but not so disclosed in
the SEC Reports, other than those incurred in the ordinary course of the their
respective businesses and which, individually or in the aggregate, do not or
would not have a CEI Material Adverse Effect; and (ix) there are no financing
statements securing obligations in any material amounts, either singly or in the
aggregate, filed in connection with any of the CEI Parties or their
Subsidiaries. CEI has filed in its SEC Reports with the SEC true, correct and
complete copies of its certificate of incorporation and its bylaws, both as
amended and as in effect on the date hereof, and the form of all securities
convertible into, or exercisable or exchangeable for, shares of Common Stock. 

12 

Section 5.7 

 Consideration
Shares. When issued in compliance with the provisions of this Agreement, the
Consideration Shares will be validly issued, fully paid and nonassessable, and
will be free of any Liens or encumbrances; provided, however, that
the Consideration Shares may be subject to restrictions on transfer under state
and/or federal securities laws as set forth herein or as otherwise required by
such laws. 

Section 5.8 

 Litigation.
There is no private or governmental Action pending or threatened against any of
the CEI Parties or their respective Subsidiaries, or, to the CEI Parties’
Knowledge, pending or threatened in writing to the CEI Parties against any of
their respective executive officers or directors (in their capacities as such),
any parties to Material Contracts pursuant to which the CEI Parties are legally
bound or any of their respective properties before or by any Governmental
Authority. As of the date of this Agreement, there is no Judgment imposed upon
any of the CEI Parties or their respective Subsidiaries or any of their
respective properties, that would prevent, enjoin, alter or materially delay any
of the Transactions. Neither the CEI Parties, nor any director or executive
officer of any of them (in his or her capacity as such), is or has been the
subject of any Action involving a material claim or material violation of or
material liability under the securities laws of any Governmental Authority or a
material claim of breach of fiduciary duty. 

Section 5.9 

 Consents and
Approvals. No Consent to which any of the CEI Parties or any of their
respective Subsidiaries are subject is required to be obtained or made by or
with respect to any of the CEI Parties or any of their respective Subsidiaries,
in connection with the execution, delivery and performance of the Transaction
Documents or the consummation of the Transactions, except for (a) such Consents
as may be required under applicable state securities laws and the securities
laws of any foreign country; and (b) such other Consents which, if not obtained
or made, would not reasonably be expected to have a CEI Material Adverse Effect
and would not prevent or materially alter or delay any of the Transactions. 

13 

Section 5.10 

 Brokers; Schedule
of Fees and Expenses. No broker, investment banker, financial advisor or
other Person is entitled to any broker’s, finder’s, financial advisor’s or other
similar fee or commission in connection with this Agreement or the Transactions
based upon arrangements made by or on behalf of CEI Parties. 

Section 5.11 

 Financial Statements; Undisclosed
Liabilities. 

(a) 

The SEC Reports contain true
and complete copies of the combined financial statements of CEI consisting of
(i) audited combined balance sheets of CEI as of December 31, 2008 and 2009, and
the related audited combined statements of income and stockholder’s equity and
cash flows for each of the years ended December 31, 2007, 2008 and 2009
(including the notes or other supplementary information thereto) (collectively,
the “Year-End Financial Statements”) and (ii) an unaudited balance
sheet of CEI as of September 30, 2010 (the “Latest Balance
Sheet”), and the related unaudited combined statements of income and
stockholders’ equity and cash flows for the nine-month period then ended (the
“Interim Financial Statements,” and, together with the Year-End
Financial Statements, the “Financial Statements”). 

(b) 

Each of the Financial
Statements (including the notes or other supplementary information thereto) (i)
has been prepared in accordance with GAAP applied on a consistent basis
throughout the periods involved and (ii) present fairly, in all material
respects, the financial position of CEI as of the respective dates thereof and
the results of each such entity’s operations and cash flows for the periods
indicated, subject, however, in the case of the Interim Financial Statements, to
normal year-end audit adjustments and to the absence of notes and other textual
disclosure required by GAAP. The books and records of CEI have been and are
being maintained in all material respects in accordance with applicable legal
and accounting requirements to permit preparation of the Financial Statements in
accordance with GAAP and to maintain asset accountability. 

(c) 

No CEI Party has any
liability (and, to the CEI Parties’ Knowledge, there is no reasonable basis for
any action, suit, proceeding, hearing, investigation, charge, complaint, claim
or demand against a CEI Party or any of their respective Subsidiaries giving
rise to any liability), other than (i) liabilities reserved or disclosed on the
face of the Latest Balance Sheet, (ii) liabilities which have arisen after the
date of Latest Balance Sheet in the ordinary course of business of CEI (none of
which results from, arises out of, relates to, is in the nature of or was caused
by any breach of contract, breach of warranty, tort, infringement or violation
of Laws), (iii) liabilities that have been discharged or paid in full after the
date of the Latest Balance Sheet in the ordinary course of business of CEI (none
of which results from, arises out of, relates to, is in the nature of or was
caused by any breach of contract, breach of warranty, tort, infringement or
violation of Laws) or (iv) liabilities that are obligations to perform pursuant
to the terms of any Contract binding on any CEI Party or any of their respective
Subsidiaries, in each case except to the extent such liabilities are reflected
in agreements to which a CAMAC Party is a party. 

14 

Section 5.12 

[Intentionally
Omitted]. 

Section 5.13 

 Foreign Corrupt
Practices. Neither the CEI Parties and their respective Subsidiaries, nor to
the CEI Parties’ Knowledge, any of their respective Representatives, has, in the
course of its actions for, or on behalf of, the CEI Parties or their respective
Subsidiaries, directly or indirectly, (a) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expenses relating
to political activity; (b) made any direct or indirect unlawful payment to any
Governmental Authority or any foreign or domestic government official or
employee from corporate funds; (c) violated or is in violation of any provision
of the FCPA; or (d) made any unlawful bribe, rebate, payoff, influence payment,
kickback or other unlawful payment in connection with the operations of CEI
Parties or any of their respective Subsidiaries to any foreign or domestic
government official or employee, except, in the case of clauses (a) and (b)
above, any such items that, individually or in the aggregate, have not had and
would not reasonably be expected to have a CEI Material Adverse Effect. 

Section 5.14 

 Money Laundering
Laws. To the CEI Parties’ Knowledge, none of the CEI Parties or their
respective Subsidiaries has violated any Money Laundering Laws, and no
proceeding involving any CEI Party or any of their respective Subsidiaries with
respect to the Money Laundering Laws is pending or is, to the CEI Parties’
Knowledge, threatened. 

Section 5.15 

 OFAC. None of
the CEI Parties or their respective Subsidiaries, any director or officer of the
CEI Parties, or, to the CEI Parties’ Knowledge, any of their respective
Representatives is currently identified on the specially designated nationals or
other blocked person list or otherwise currently subject to any U.S. sanctions
administered by OFAC; and none of the CEI Parties nor any of their respective
Subsidiaries have, directly or indirectly, used any funds, or loaned,
contributed or otherwise made available such funds to any Subsidiary, joint
venture partner or other Person, in connection with any sales or operations in
Cuba, Iran, Syria, Sudan, Myanmar or any other country sanctioned by OFAC or for
the purpose of financing the activities of any Person currently subject to, or
otherwise in violation of, any U.S. sanctions administered by OFAC. 

Section 5.16 

 Environmental
Matters. With respect to the assets and operations of the CEI Parties and
their respective Subsidiaries: 

(a) 

The CEI Parties and their
respective Subsidiaries and all associated operations are, and during the
relevant time periods specified in all applicable statutes of limitations, have
been in compliance with Environmental Laws in all material respects; 

(b) 

The CEI Parties and their
respective Subsidiaries all Environmental Authorizations required for their
operations as presently conducted, all such Environmental Authorizations are in
the name of the proper entity and in full force and effect, and the CEI Parties
are in compliance in all material respects with such Environmental
Authorizations; 

(c) 

The CEI Parties and their
respective Subsidiaries are not subject to any pending or, to the CEI Parties’
Knowledge, threatened Action pursuant to Environmental Laws, nor has any CEI
Party received any written notice of violation, noncompliance, or enforcement or any written notice of
investigation or remediation from any Governmental Authority pursuant to
Environmental Laws; 

15 

(d)

There has been no Release of
Hazardous Materials at, on, under or from the assets or in connection with the
operations or assets of the CEI Parties in violation of any Environmental Laws
or in a manner that could give rise to any Environmental Liabilities or any
other remedial or corrective action obligations pursuant to Environmental Laws;

(e) 

To the CEI Parties’
Knowledge, there has been no exposure of any Person or property to any Hazardous
Materials in connection with the operations or assets of the CEI Parties that
could reasonably be expected to form the basis for any Environmental Liabilities
or any Action for other Damages or compensation; 

(f) 

The CEI Parties have made
available for inspection complete and correct copies of all environmental
assessment and audit reports and studies and all correspondence addressing
environmental obligations relating to the CEI Parties that are in the possession
or control of the CEI Parties; and 

(g) 

Notwithstanding any other
provision of this Agreement, the representations and warranties made in this
Section 5.16 are the sole and exclusive representations and warranties made in
this Agreement by the CEI Parties with respect to environmental matters. 

Section 5.17 

 Taxes. Each
of the CEI Parties and their Subsidiaries have timely, or have caused to be
timely filed on their behalf, all Tax Returns required by Law to be filed by or
with respect to it, either separately or as a member of group of corporations.
All Tax Returns filed by (or that include on a consolidated basis) any of the
CEI Parties and their Subsidiaries were (and, as to a Tax Return not filed as of
the date hereof, will be) in all respects true, complete and accurate, except to
the extent any failure to file or any inaccuracies in any filed Tax Returns,
individually or in the aggregate, have not and would not reasonably be expected
to have a CEI Material Adverse Effect. There are no unpaid Taxes claimed to be
due by any Governmental Authority in charge of taxation of any jurisdiction, nor
any claim for additional Taxes for any period for which Tax Returns have been
filed, except to the extent any failure to file or any inaccuracies in any filed
Tax Returns, individually or in the aggregate, have not and would not reasonably
be expected to have a CEI Material Adverse Effect. Each of the CEI Parties and
their Subsidiaries has set aside on its books provision reasonably adequate for
the payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply. Any deficiencies proposed as a result of
any governmental audits or such Tax Returns have been paid or settled, and there
are no present disputes as to such Taxes payable by any of the CEI Parties or
their Subsidiaries. There are no tax liens against any property for assets of
the CEI Parties or their Subsidiaries and, to the CEI Parties’ Knowledge, there
is no basis for any such lien. 

Section 5.18 

 Title. Each
of CEI and its Subsidiaries has good and marketable title to all real property
and good and marketable title to all personal property owned by them that is
material to their respective businesses, in each case free and clear of all
Liens and defects, except such as do not materially affect the value of such property and
do not interfere with the use made and proposed to be made of such property by
any of the CEI Parties. Any real property (including mineral, mining or similar
rights) and facilities held under lease by a CEI Party or any of their
respective Subsidiaries are held by such CEI Party or their respective
Subsidiaries under valid, subsisting and enforceable leases with such exceptions
as are not material and do not interfere with the use made and proposed to be
made of such property and buildings by any of them. 

16 

Section 5.19 

 [Intentionally Omitted]. 

Section 5.20 

 SEC Reports.
CEI has filed all reports, schedules, forms, statements and other documents
required to be filed by it under the Securities Act and the Exchange Act,
including pursuant to Section 13(a) or 15(d) thereof (the foregoing materials
including all exhibits and schedules thereto, being collectively referred to
herein as the “SEC Reports” and, together with the Schedules to
this Agreement, and any other materials prepared by CEI and delivered to the
CAMAC Parties in writing, the “Disclosure Materials”). CEI has
delivered to the CAMAC Parties or their representatives, true, correct and
complete copies of the SEC Reports not available on the EDGAR system. As of
their respective dates, the SEC Reports complied in all material respects with
the requirements of the Securities Act and the Exchange Act and the rules and
regulations of the Commission promulgated thereunder, none of the SEC Reports or
the other Disclosure Materials, when filed or prepared, as applicable, contained
any untrue statement of a material fact or omitted 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. 

Section 5.21 

 Investment
Company. None of the CEI Parties, nor any of their respective Subsidiaries
is, and after giving effect to the Transactions, none of them will be, (a) an
“investment company” within the meaning of such term under the Investment
Company Act of 1940, as amended (the “Investment Company Act”),
and the rules and regulations of the SEC thereunder or (b) a “business
development company” (as defined in Section 2(a)(48) of the Investment Company
Act). 

ARTICLE VI 

COVENANTS OF THE CAMAC PARTIES 

Section 6.1 

 General Conduct of
Business. During the period from the date of this Agreement and continuing
until the earlier of the termination of this Agreement or the Closing Date,
unless consented to in writing by the CEI Parties, each of the CAMAC Parties
agree to: (x) operate its business with respect to the Contract Rights and the
OML Related Agreements in the usual and ordinary course consistent with past
practices; (y) with respect to the Contract Rights and the OML Related
Agreements, preserve substantially intact its business organization, maintain
its rights and franchises and maintain its relationships and goodwill with its
suppliers, customers, distributors, licensors, licensees and other Persons doing
business with it and (z) take all such actions as are reasonably necessary and
appropriate to (i) comply with applicable obligations under the OML Related
Agreements and (ii) maintain the effectiveness and validity of the OML Related
Agreements during the terms thereof. Without limiting the generality of the foregoing, except as otherwise consented to in writing by
the CEI Parties, from the date of this Agreement until the earlier of the
termination of this Agreement or the Closing Date, the CAMAC Parties will not: 

17 

(a) 

sell, transfer, lease,
exchange or otherwise dispose of, whether by merging, consolidating or in any
other manner, or grant any Lien with respect to the Contract Rights or OML
120/121; 

(b) 

incur, create, assume,
guarantee or otherwise become liable for any obligation for borrowed money,
purchase money indebtedness or any obligation of any other Person, that is
secured by the Contract Rights or OML 120/121; 

(c) 

engage in any conduct or
activity that could result in the revocation, suspension or termination of any
of the OML Related Agreements; 

(d) 

take or cause to be taken any action (including inaction) that could reasonably
be expected to prevent, or materially alter, delay or adversely affect the
consummation of the Transactions, or that could reasonably be expected to result
in any of the representations and warranties contained in Article IV becoming
untrue or inaccurate in any material respect; or 

(e)

agree in writing or otherwise to do any of the foregoing.

Section 6.2 

 Notice of CAMAC
Material Adverse Effect. Each of the CAMAC Parties agrees to promptly notify
the CEI Parties of any material event or occurrence not in the ordinary course
of its business that, individually or in the aggregate, would have or would
reasonably be expected to have a CAMAC Material Adverse Effect, including but
not limited to: (a) any written notice of default or termination received or
given by any of the CAMAC Parties with respect to any of the OML Related
Agreements; (b) any written notice of any pending or threatened Action relating
to any of the OML Related Agreements; (c) any material damage, destruction or
loss to all or any part of the area covered by OML 120/121 or any assets used in
connection with OML 120/121 or any of the OML Related Agreements or (d) any
event or condition occurring or arising on or after the date hereof that would
render unenforceable the CEI Parties’ rights under this Agreement, or, after
giving effect to this Agreement, under any of the OML Related Agreements. 

Section 6.3 

 Consultation;
Compliance. The CAMAC Parties agree to (a) consult with the CEI Parties
before voting on material decisions under any of the OML Related Agreements; (b)
continue to pay all amounts due and owing under each of the OML Related
Agreements; and (c) comply in all material respects with all covenants,
agreements and other provisions of each of the OML Related Agreements required
to be complied with by the CAMAC Parties. 

Section 6.4 

 CEI Consent
Required. Without limiting the generality of the forgoing, during the period
from the date of this Agreement and continuing until the earlier of the
termination of this Agreement or the Closing Date, except as listed on the CAMAC
Disclosure Schedule or as otherwise expressly permitted by or provided for in
this Agreement, none of the CAMAC Parties shall do, allow, cause or permit any
of the following actions to occur with respect to any of the Contract Rights without the prior written
consent of the CEI Parties, which shall not be unreasonably delayed or withheld: 

18 

(a)

 Material Contracts.
Except as set forth in the CAMAC Disclosure Schedule, enter into any new
material contract relating to the PSC or OML 120/121, or violate, amend or
otherwise materially modify or waive any of the terms of any existing OML
Related Agreement or waive or fail to enforce any material right thereunder,
other than in the ordinary course of business consistent with past practice;

(b)

 Dispositions. Sell,
lease, license or otherwise dispose of or encumber all or part of the Contract
Rights, except in the ordinary course of business consistent with past practice;

(c) 

 Litigation. Compromise
or settle any material litigation or arbitration proceedings related to the PSC
or OML 120/121; or 

(d) 

 Capital Commitments.
Enter into any capital commitment in excess of $100,000 relating to the PSC or
OML 120/121. 

Section 6.5 

 Related Tax.
From the date of this Agreement and continuing until the earlier of the
termination of this Agreement or the Closing Date, each of the CAMAC Parties,
consistent with past practice, shall (a) duly and timely file all Tax Returns
and other documents, with respect to the OML Related Agreements, required to be
filed by it with applicable Governmental Authorities, the failure to file of
which would reasonably be expected to have a CAMAC Material Adverse Effect,
subject to extensions permitted by Law and properly granted by the appropriate
Tax authority; and (b) pay all Taxes shown as due on such Tax Returns (subject
to good faith disputes over such Taxes). The CAMAC Parties shall be jointly and
severally responsible for any and all sales or other transaction Taxes, duties
and other similar charges payable in connection with the sale and transfer of
the Contract Rights. 

Section 6.6

 Access to
Information. Except as required pursuant to any confidentiality agreement or
similar agreement or arrangement to which any CAMAC Party is subject, between
the date of this Agreement and the Closing Date, subject to the CEI Parties’
undertaking to use commercially reasonable efforts to keep confidential and
protect the Intellectual Property of CAMAC Parties against any disclosure, the
CAMAC Parties will permit the CEI Parties and its Representatives reasonable
access at dates and times agreed upon by the applicable CAMAC Party and the CEI
Parties, to all of their books and records and other data with respect to the
OML Related Agreements, including, but not limited to, exploration operations,
oil screening assessments and drilling and reconnaissance programs, which the
CEI Parties determine are necessary for the preparation and amendment of filings
or submissions required by SEC rules and regulations as are necessary to
consummate the Transactions and as are necessary to respond to requests of the
SEC’s staff, the CEI Parties’ accountants and relevant Governmental Authorities.

Notwithstanding anything to the
contrary contained herein, the failure to use commercially reasonable efforts to
protect against any disclosure of any Intellectual Property of the CAMAC Parties
by any CEI Party or its Representatives in violation of this Section 6.6, shall constitute a breach of a covenant in a material respect
pursuant to Section 11.1(c) hereof; provided, however, that the
CEI Parties may make a disclosure otherwise prohibited by this Section 6.6 if
required by applicable Law (including, without limitation, by oral questions,
interrogatories, requests for information, subpoena of documents, civil
investigative demand or similar process) or the rules and regulations of the SEC
or any stock exchange having jurisdiction over the CEI Parties. If any CEI Party
or any of its Representatives is requested or required to disclose any
Intellectual Property of the CAMAC Parties as provided in the proviso in the
immediately preceding sentence, such CEI Party shall provide the CAMAC Parties
with prompt written notice of any such request or requirement to allow the CAMAC
Parties to seek a protective order or other appropriate remedy. If any or all
seismic data or other information obtained by any of the CAMAC Parties in
connection with the OML Related Agreements from a third party is subject to
restrictions on disclosure, the CAMAC Parties shall use commercially reasonable
efforts to enter into an agreement with such third party allowing disclosure of
such data to the CEI Parties.

19 

Section 6.7 

 Exclusivity; No Other Negotiations. 

(a) 

None of the CAMAC Parties
shall take (or authorize or permit any investment banker, financial advisor,
attorney, accountant or other Person retained by or acting for or on behalf of
any of the CAMAC Parties to take) directly or indirectly, any action to
initiate, assist, solicit, negotiate, or encourage any offer, inquiry or
proposal from any Person other than the CEI Parties: (i) relating to the
acquisition of the area covered by OML 120/121, or any interest thereon, or any
interest in and to the Contract Rights (including any acquisition structured as
a merger, consolidation, share exchange or other business combination) (an
“Acquisition Proposal”); (ii) to reach any agreement or
understanding (whether or not such agreement or understanding is absolute,
revocable, contingent or conditional) for, or otherwise attempt to consummate,
any Acquisition Proposal with any of the CAMAC Parties; (iii) to participate in
discussions or negotiations with or to furnish or cause to be furnished any
information with respect to the CAMAC Parties or afford access to such assets
and properties or books and records of any of the CAMAC Parties to any Person
who any of the CAMAC Parties (or any such Person acting for or on their behalf)
knows or has reason to believe is in the process of considering any Acquisition
Proposal relating to any of the CAMAC Parties; (iv) to participate in any
discussions or negotiations regarding, furnish any material non-public
information with respect to, assist or participate in, or facilitate in any
other manner any effort or attempt by any Person to do or seek any of the
foregoing, or (v) to take any other action that is inconsistent with the
Transactions and that has the effect of avoiding the Closing. 

(b) 

The CAMAC Parties will
immediately cease any and all existing activities, discussions or negotiations
with any parties conducted heretofore with respect to any of the actions set
forth in Section 6.7(a) above, if applicable. The CAMAC Parties will promptly
(i) notify the CEI Parties if any of the CAMAC Parties receives any proposal or
inquiry or request for information in connection with an Acquisition Proposal,
and (ii) notify the CEI Parties of the significant terms and conditions of any
such Acquisition Proposal including the identity of the Party making an
Acquisition Proposal. 

20 

(c) 

Notwithstanding the other
provisions of this Section 6.7, from and after, March 31, 2011, the CAMAC
Parties may engage in the activities described in Section 6.7(a) with respect to
an Acquisition Proposal; provided, that any definitive agreement entered into by
a CAMAC Party relating to an Acquisition Proposal must provide that the closing
of any Acquisition Proposal be conditioned on the prior termination of this
Agreement in accordance with its terms and include a provision that provides
that such agreement will automatically terminate upon the Closing. The CAMAC
Parties will promptly notify the CEI Parties of the entry into any such
definitive agreement. 

Section 6.8 

 Fulfillment of
Conditions. The CAMAC Parties shall use their commercially reasonable
efforts to fulfill the conditions specified in Article IX, to the extent that
the fulfillment of such conditions is within their control. The foregoing
obligation includes (a) good faith negotiation, the execution and delivery of
documents necessary or desirable to consummate the Transactions and (b) taking
or refraining from such actions as may be necessary to fulfill such conditions
(including using their commercially reasonable efforts to conduct their business
in such manner that on the Closing Date the representations and warranties of
the each of the CAMAC Parties contained herein shall be accurate as though then
made, except as contemplated by the terms hereof). 

Section 6.9 

 Regulatory and
Other Authorizations; Notices and Consents. The CAMAC Parties shall use
their commercially reasonable efforts to obtain all material Consents that may
be or become necessary for their execution and delivery of, and the performance
of their obligations pursuant to, the Transaction Documents and will cooperate
with the CEI Parties in promptly seeking to obtain all such Consents. Each of
the CAMAC Parties shall give promptly such notices to third parties and use its
or their commercially reasonable efforts to obtain such Consents as are required
to consummate the Transactions (and in such regard use commercially reasonable
efforts to cause the relevant Governmental Authorities to permit the CEI Parties
and/or its counsel to participate in meetings with, and submit and review
correspondence to and from such Governmental Authorities); provided,
however, that the CAMAC Parties shall have no obligation to give any
guarantee or other consideration of any nature in connection with any such
notice, consent or estoppel certificate or to consent to any change in the terms
of any agreement or arrangement that could reasonably be expected to result in a
CAMAC Material Adverse Effect. 

Section 6.10 

 PSC
Obligations. If the PSC is terminated by any party after the Closing Date,
then Allied shall be obligated to fulfill the obligations of NAE under the PSC
and shall obtain such instruments, assignments, certificates, notices,
statements, consents, agreements, deeds, papers and documents, as necessary to
provide CPL the same rights, obligations and benefits with respect to the
Contract Rights. 

ARTICLE VII 

COVENANTS OF THE CEI PARTIES 

Section 7.1 

 [Intentionally Omitted]. 

21 

Section 7.2 

 Notice of CEI
Material Adverse Effect. From the date hereof through the Closing Date, the
CEI Parties shall give the CAMAC Parties prompt written notice of any event or
development that, individually or in the aggregate, would have or would
reasonably be expected to have a CEI Material Adverse Effect. 

Section 7.3 

 CAMAC Consent
Required. Without limiting the generality of the forgoing, during the period
from the date of this Agreement and continuing until the earlier of the
termination of this Agreement or the Closing Date, except as listed on the CEI
Disclosure Schedule or as otherwise expressly permitted by or provided for in
this Agreement, none of the CEI Parties shall do, allow, cause or permit any of
the following actions to occur without the prior written consent of the CAMAC
Parties, which consent shall not be unreasonably delayed or withheld: 

(a) 

 Charter Documents.
None of the CEI Parties nor any of its Subsidiaries shall adopt or propose any
change in any of their respective CEI Constituent Instruments except for such
amendments required by any Law or the rules and regulations of the SEC or NYSE
Amex or as are contemplated by this Agreement. 

(b) 

 SEC Reports. The CEI
Parties shall not fail to timely file or furnish to or with the SEC all SEC
Reports, except those filings by Affiliates of the CEI Parties required under
Section 13(d) or 16(a) of the Exchange Act that do not have a CEI Material
Adverse Effect. 

(c) 

 Dividends; Changes in
Capital Stock. The CEI Parties shall not declare or pay any dividends on or
make any other distributions (whether in cash, stock or property) in respect of
any of its capital stock, or split, combine or reclassify any of its capital
stock or issue or authorize the issuance of any other securities in respect of,
in lieu of or in substitution for shares of its capital stock, or repurchase or
otherwise acquire, directly or indirectly, any shares of its capital stock nor
shall any of the CEI Parties enter into any agreement or arrangement to do any
of the foregoing. 

(d) 

 Taxes. None of the CEI
Parties nor any of its Subsidiaries shall make or change any material election
in respect of Taxes, adopt or change any accounting method in respect of Taxes,
file any Tax Return or any amendment to a Tax Return, enter into any closing
agreement, settle any claim or assessment in respect of Taxes, or consent to any
extension or waiver of the limitation period applicable to any claim or
assessment in respect of Taxes. 

(e) 

 Litigation. Compromise
or settle any material litigation or arbitration proceedings. 

(f) 

 Material Contracts.
Enter into any new material contract imposing a payment obligation of the CEI
Parties or any of their respective Subsidiaries in excess of $100,000, other
than in the ordinary course of business consistent with past practice or as
approved by at least five (5) of the members of the Company’s Board of
Directors. 

22 

Section 7.4 

 Related Tax.
From the date hereof through the Closing Date, the CEI Parties, consistent with
past practice, shall (a) duly and timely file all Tax Returns and other
documents required to be filed by it with applicable Governmental Authorities,
the failure to file of which could have a CEI Material Adverse Effect, subject
to extensions permitted by Law and properly granted by the appropriate
Governmental Authority; provided, that the CEI Parties notify the CAMAC
Parties that the CEI Parties are availing themselves of such extensions, and (b)
pay all Taxes shown as due on such Tax Returns (subject to good faith disputes
over such Taxes). 

Section 7.5 

 Fulfillment of
Conditions. From the date hereof to the Closing Date, the CEI Parties shall
use its commercially reasonable efforts to fulfill the conditions specified in
Article IX, to the extent that the fulfillment of such conditions is within its
control. The foregoing obligation includes (a) the execution and delivery of
documents necessary or desirable to consummate the Transactions and (b) taking
or refraining from such actions as may be necessary to fulfill such conditions
(including using its commercially reasonable efforts to conduct the business of
the CEI Parties and their respective Subsidiaries in such manner that on the
Closing Date the representations and warranties of the CEI Parties contained
herein shall be accurate as though then made). 

Section 7.6 

 Regulatory and
Other Authorizations; Notices and Consents. The CEI Parties shall use their
commercially reasonable efforts to obtain all material Consents that may be or
become necessary for their execution and delivery of, and the performance of
their obligations pursuant to, the Transaction Documents to which they are a
party. The CEI Parties shall cooperate and use commercially reasonable efforts
to assist the CAMAC Parties in giving such notices and obtaining such Consents
set forth in Section 6.9 (and in such regard use commercially reasonable efforts
to cause the relevant Governmental Authorities to permit the CAMAC Parties
and/or its counsel to participate in meetings with, and submit and review
correspondence to and from such Governmental Authorities); provided,
however, that the CEI Parties shall have no obligation to give any
guarantee or other consideration of any nature in connection with any such
notice, consent or estoppel certificate or to consent to any change in the terms
of any agreement or arrangement that could reasonably be expected to result in a
CEI Material Adverse Effect. 

Section 7.7 

 Consideration
Shares. CEI shall cause any Consideration Shares issued to CEHL, as nominee
for Allied and CINL (or its designees) hereunder to be duly authorized, validly
issued, fully paid and nonassessable, and CEI will cause such Consideration
Shares to be issued to CEHL (or its designee) in compliance with all applicable
Laws. 

Section 7.8 

 OML Related
Agreements. The CEI Parties shall not engage in any conduct or activity that
could result in the revocation, suspension or termination of any of the OML
Related Agreements. 

23

ARTICLE VIII 

ADDITIONAL AGREEMENTS AND COVENANTS 

Section 8.1 

 Disclosure
Schedules. Each of Parties shall, as of the Closing Date, have the
obligation to supplement or amend their respective Disclosure Schedules
delivered concurrently with the execution of this Agreement (and attached hereto
as Schedule A and Schedule B) and annexes and exhibits hereto with
respect to any matter hereafter arising or discovered which resulted in, or
could reasonably be expected to result in, a CEI Material Adverse Effect or
CAMAC Material Adverse Effect, as the case may be. The obligations of the
Parties to supplement or amend their respective Disclosure Schedules shall
terminate on the Closing Date. Notwithstanding any such supplementation or
amendment, for purposes of Articles IX, X and XI, the
representations and warranties of the Parties shall be made with reference to
the Disclosure Schedules as they exist at the time of execution of this
Agreement. 

Section 8.2 

Confidentiality. Between the date hereof and the Closing Date, each of
the CAMAC Parties and the CEI Parties shall hold and shall cause their
respective Representatives to hold in strict confidence, unless compelled to
disclose by judicial or administrative process or by applicable Law or by the
rules and regulations of, or pursuant to any agreement of a stock exchange or
trading system, all documents and information concerning the other Party
furnished to it by such other Party or its Representatives in connection with
the Transactions, except to the extent that such information can be shown to
have been (a) publicly available without the receiving Party’s breach of any
obligation owed to the disclosing Party, (b) known to the receiving Party prior
to the disclosing Party’s disclosure of such information; (c) known to the
receiving Party from a source other than the disclosing Party other than by the
breach of an obligation of confidentiality owed to disclosing Party; or (d) is
independently developed by the receiving Party without reliance on the
disclosing Party’s information. Each Party shall be deemed to have satisfied its
obligations to hold confidential information concerning or supplied by the other
Party in connection with the Transactions, if it exercises the same care as it
takes to preserve confidentiality for its own similar information. For the
avoidance of doubt, any disclosure of information required to be included by CEI
in its filings with the SEC as required by the applicable Laws will not be
violation of this Section 8.2. Notwithstanding the foregoing, CEI’s disclosure
to financial institutions and accredited investors in connection with
investments in the CEI Parties, subject to nondisclosure agreements among CEI
and such parties, shall not constitute a violation of this Section 8.2. 

Section 8.3 

 Public
Announcements. From the date of this Agreement until the Closing or
termination of this Agreement, the Parties shall cooperate in good faith to
jointly prepare all press releases and public announcements pertaining to this
Agreement and the Transactions, and none of the foregoing shall issue or
otherwise make any public announcement or communication pertaining to this
Agreement or the Transactions without the prior consent of the CEI Parties (in
the case of the CAMAC Parties) or the CAMAC Parties (in the case of the CEI
Parties), except as required by applicable Law or by the rules and regulations
of, or pursuant to any agreement of, a stock exchange or trading system. Each
Party will not unreasonably withhold approval from the others with respect to
any press release or public announcement. If any Party determines with the
advice of counsel that it is required to make this Agreement and the terms of
the Transactions public or otherwise issue a press release or make public
disclosure with respect thereto, it shall at a reasonable time before
making any public disclosure, consult with the other Parties regarding such
disclosure, seek such confidential treatment for such terms or portions of this
Agreement or the Transactions as may be reasonably requested by the other
Parties and disclose only such information as is required by applicable Law to
be disclosed. This provision will not apply to communications by any Party to
its counsel, accountants and other professional advisors. 

24 

Section 8.4

 Fees and
Expenses. Except as expressly provided in Article XI, in the event there is
no Closing of the Transactions, all fees and expenses incurred in connection
with this Agreement shall be paid by the Party incurring such fees or expenses.

Section 8.5 

 Certain
Disclaimers. EXCEPT TO THE EXTENT EXPRESSLY SET FORTH IN THIS AGREEMENT, THE
CAMAC PARTIES AND THE CEI PARTIES MAKE NO REPRESENTATIONS OR WARRANTIES
WHATSOEVER AND DISCLAIM ALL LIABILITY AND RESPONSIBILITY FOR ANY OTHER
REPRESENTATION, WARRANTY, STATEMENT OR INFORMATION MADE OR COMMUNICATED (ORALLY
OR IN WRITING) TO THE OTHER PARTIES. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER THE CAMAC
PARTIES NOR THE CEI PARTIES MAKE ANY REPRESENTATIONS OR WARRANTIES AS TO (A) THE
AMOUNTS OF OR VALUES WITH RESPECT TO ANY HYDROCARBON RESERVES ATTRIBUTABLE TO
THE CONTRACT RIGHTS OR (B) THE ACCURACY OR CONTENT OF THE RECORDS AND DATA. 

EXCEPT AS CONTAINED IN ARTICLE IV
OR ARTICLE V, THE CAMAC PARTIES AND CEI PARTIES, RESPECTIVELY, EXPRESSLY
DISCLAIM ANY REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR IMPLIED, AS TO
(I) THE CONTRACT RIGHTS, (II) THE CONTENTS, CHARACTER OR NATURE OF ANY
DESCRIPTIVE MEMORANDUM, OR ANY REPORT OF ANY PETROLEUM ENGINEERING CONSULTANT,
OR ANY GEOLOGICAL OR SEISMIC DATA OR INTERPRETATION, RELATING TO THE PARTIES,
(III) THE QUANTITY, QUALITY OR RECOVERABILITY OF HYDROCARBONS IN OR FROM THE
CONTRACT RIGHTS, (IV) ANY ESTIMATES OF THE VALUE OF THE CONTRACT RIGHTS,
RESERVES, OR FUTURE REVENUES GENERATED BY THE CONTRACT RIGHTS, (V) THE
PRODUCTION OF HYDROCARBONS (VI) THE MAINTENANCE, REPAIR, CONDITION, QUALITY,
SUITABILITY, DESIGN OR MARKETABILITY OF THE ASSETS, (VII) THE CONTENT, CHARACTER
OR NATURE OF ANY DESCRIPTIVE MEMORANDUM, REPORTS, BROCHURES, CHARTS OR
STATEMENTS PREPARED BY THIRD PARTIES, AND (VIII) ANY OTHER MATERIALS OR
INFORMATION THAT MAY HAVE BEEN MADE AVAILABLE OR COMMUNICATED TO THE CEI PARTIES
OR ITS AFFILIATES, OR ITS OR THEIR EMPLOYEES, AGENTS, CONSULTANTS,
REPRESENTATIVES OR ADVISORS IN CONNECTION WITH THE TRANSACTIONS OR ANY
DISCUSSION OR PRESENTATION RELATING THERETO, AND FURTHER DISCLAIM ANY
REPRESENTATION OR WARRANTY, EXPRESS, STATUTORY OR IMPLIED, OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, OR OF CONFORMITY TO MODELS OR SAMPLES OF
MATERIALS, IT BEING EXPRESSLY UNDERSTOOD AND AGREED BY THE PARTIES THAT THE CEI
PARTIES SHALL BE DEEMED TO BE OBTAINING THE CONTRACT RIGHTS IN THEIR PRESENT STATUS,
CONDITION AND STATE OF REPAIR, “AS IS” AND “WHERE IS” WITH ALL FAULTS AND THAT
THE CEI PARTIES HAVE MADE OR CAUSED TO BE MADE SUCH INSPECTIONS AND EVALUATIONS,
AS THE CEI PARTIES DEEMS APPROPRIATE. 

25 

Section 8.6 

 Further
Assurances. Subject to the terms and conditions of this Agreement, at any
time or from time to time after the Closing, each of the Parties shall execute
and deliver such other documents and instruments, provide such materials and
information and take such other actions as may be commercially reasonable, to
the extent permitted by Law, to fulfill its obligations under this Agreement and
to effectuate and consummate the Transactions. 

ARTICLE IX 

CONDITIONS TO CLOSING 

Section 9.1 

 Joint
Conditions Precedent. The obligations of the Parties to close the
Transactions are subject to the fulfillment on or prior to the Closing Date of
the following conditions by the Parties, any one or more of which may be waived
by the Parties in writing: 

(a) 

 Novation Agreement.
Execution and delivery of the Novation Agreement (which shall include a waiver
pursuant to which NAE waives the enforcement of Section 8.1(e) of the PSC and
agrees that, notwithstanding anything to the contrary contained in the PSC, the
profit sharing allocation set forth therein shall remain the same after the
Closing Date); 

(b) 

 Deliveries. The
deliveries required to be made by the CEI Parties and the CAMAC Parties in
Article II shall have been made by them; 

(c) 

 OML 120/121 Management
Agreement. Execution and delivery of the OML 120/121 Management Agreement in
form and substance reasonably satisfactory to the Parties. 

Section 9.2 

 CAMAC Parties
Conditions Precedent. The obligations of the CAMAC Parties to close the
Transactions are subject to the fulfillment on or prior to the Closing Date of
the following conditions by the CEI Parties, any one or more of which may be
waived by the CAMAC Parties in writing. 

(a) 

 Governmental and Third
Party Approvals. Each of the CEI Parties shall have timely obtained from
each Governmental Authority all approvals, waivers and consents, if any,
necessary for consummation of or in connection with this Agreement and the
Transactions, including such approvals, waivers and consents as may be required
from the Federal Republic of Nigeria (and any other Nigerian governmental
agency), NAE, the SEC, and any other foreign or domestic Person or Governmental
Authority. 

(b) 

 Representations and
Covenants. The representations and warranties of the CEI Parties contained
in this Agreement shall be true and correct on and as of the Closing Date,
except where the failure of such representations or warranties to be so true and correct, individually or in the aggregate, has
not had or would not reasonably be expected to have a CEI Material Adverse
Effect, and each of the CEI Parties shall have performed and complied in all
material respects with all covenants and agreements required by this Agreement
to be performed or complied with by each of them on or prior to the Closing
Date, and the CEI Parties shall have delivered to the CAMAC Parties a
certificate, dated the Closing Date, to the foregoing effect. 

26 

(c) 

 Litigation. There is
no effective injunction, writ or preliminary restraining order or any order of
any nature issued by a Governmental Authority prohibiting or making illegal the
consummation of the Transaction, and no Action has been threatened or instituted
by or before any Governmental Authority to restrain, modify or prevent the
carrying out of the Transactions, or to seek Damages or a discovery order in
connection with such Transactions, which has or may have, in the reasonable
opinion of the CAMAC Parties, a CEI Material Adverse Effect. 

(d) 

 No CEI Material Adverse
Change. There shall not have been any occurrence, event, incident, action,
failure to act, or transaction since September 30, 2010, which has had or is
reasonably expected to have a CEI Material Adverse Effect. 

(e) 

 SEC Reports. The CEI
Parties shall have filed all SEC Reports and other documents required to be
filed by the CEI Parties through the Closing Date. 

(f) 

 NYSE Amex Listing. The
CEI Parties shall have maintained its status as a company whose Common Stock is
quoted on NYSE Amex and no reason shall exist as to why its status shall not
continue immediately following the Closing. 

(g) 

 Secretary’s
Certificate. The CAMAC Parties shall have received a certificate from the
CEI Parties, signed by the secretary of such Party, certifying that the attached
copies of the CEI Constituent Instruments and resolutions of the CEI board of
directors approving the Transaction Documents and the Transactions are all true,
complete and correct and remain in full force and effect. 

(h) 

 Certificate of Good
Standing. The CAMAC Parties shall have received a certificate of good
standing under the applicable Law forCEI and a letter confirming CPL’s good
standing from CPL’s Nigerian counsel. 

(i) 

 Injunctions or Restraints
on Conduct of Business. No temporary restraining order, preliminary or
permanent injunction or other order issued by any court of competent
jurisdiction or other legal or regulatory restraint provision limiting or
restricting any the CEI Party’s conduct or operation of the business of the CEI
Parties following the Closing Date shall be in effect, nor shall any proceeding
brought by any Governmental Authority seeking the foregoing be pending. 

(j) 

 SEC Actions. No formal
or informal SEC investigation or proceeding shall have been initiated by the SEC
against any of the CEI Parties or any of their officers or directors. 

27 

(k) 

 Registration Rights
Agreement. Execution and delivery of the Registration Rights Agreement,
substantially in form and substance reasonably satisfactory to the Parties. 

Section 9.3 

 CEI Conditions
Precedent. The obligations of CEI to enter into and complete the Closing are
subject, at the option of CEI, to the fulfillment on or prior to the Closing
Date of the following conditions by each of the CAMAC Parties, any one or more
of which may be waived by CEI in writing: 

(a) 

 Representations and
Covenants. The representations and warranties of the CAMAC Parties contained
in this Agreement shall be true and correct on and as of the Closing Date except
where the failure of such representations or warranties to be so true and
correct, individually or in the aggregate, has not had or would not reasonably
be expected to have a CAMAC Material Adverse Effect, and each of the CAMAC
Parties shall have performed and complied in all material respects with all
covenants and agreements required by this Agreement to be performed or complied
with by each of them on or prior to the Closing Date, and the CAMAC Parties
shall have delivered to CEI a certificate, dated the Closing Date, to the
foregoing effect. 

(b) 

 Litigation. There is
no effective injunction, writ or preliminary restraining order or any order of
any nature issued by a Governmental Authority prohibiting or making illegal the
consummation of the Transactions, and no Action has been threatened or
instituted by or before any Governmental Authority to restrain, modify or
prevent the carrying out of the Transactions, or to seek Damages or a discovery
order in connection with such Transactions, which has or may have, in the
reasonable opinion of the CEI Parties, a CAMAC Material Adverse Effect. 

(c) 

 No CAMAC Material Adverse
Change. There shall not have been any occurrence, event, incident, action,
failure to act, or transaction since September 30, 2010, which has had or is
reasonably expected to have a CAMAC Material Adverse Effect. 

(d) 

 Secretary’s
Certificate. CEI shall have received a certificate from each of CAMAC
Parties signed by the secretary of such Party, respectively, certifying that the
attached copies of each such Party’s constituent instruments and resolutions or
other authorizing documents approving the Transaction Documents and the
Transactions are all true, complete and correct and remain in full force and
effect. 

(e)

 Certificate of Good
Standing. CEI shall have received a certificate of good standing or
equivalent under the applicable Law for CEHL, and a letter confirming each of
Allied’s and CINL’s good standing from Allied’s and CINL’s Nigerian counsel.

(f) 

 Injunctions or Restraints
on Conduct of Business. No temporary restraining order, preliminary or
permanent injunction or other order issued by any court of competent
jurisdiction or other legal or regulatory restraint provision limiting or
restricting any CAMAC Parties’ conduct or operation of the business of any of
the CAMAC Parties with respect to the OML Related Agreements and
OML 120/121 following the Closing Date shall be in effect, nor shall any
proceeding brought by any Governmental Authority seeking the foregoing be
pending. 

28 

(g) 

 Transaction Documents.
The Parties shall have executed and delivered all of the Transaction Documents
and all other agreements and instruments reasonably necessary to consummate the
Transactions. 

(h) 

 No Actions. No formal
or informal Government Authority investigation or proceeding, including by the
SEC, shall have been initiated or sent by any Government Authority against any
of the CAMAC Parties or any of their officers or directors with respect to the
OML Related Agreements and OML 120/121. 

(i) 

 Deliverables. The
CAMAC Parties shall have delivered to the CEI Parties: (i) the Data, (ii) the
G&G Workstations and (iii) the Engineering Workstation (collectively, the
Deliverables). In the event the Contract Rights revert back to the
CAMAC Parties as described in Section 3.2, the CEI Parties shall return all
Deliverables to the CAMAC Parties in “as-is” condition as of such time. 

ARTICLE X 

INDEMNIFICATION 

Section 10.1 

 Survival. All
of the representations and warranties of the Parties contained in this Agreement
shall survive the Closing for a period of twelve (12) months and shall
thereafter be of no further force and effect; provided, however,
that all of the covenants and obligations of the Parties contained in this
Agreement, including the covenants and obligations with respect to the OML
Related Agreements, shall survive the Closing unless they expire sooner in
accordance with their terms. The term during which any representation, warranty,
or covenant survives hereunder is referred to as the “Survival
Period.” Except as expressly provided in this paragraph, no claim for
indemnification hereunder may be made after the expiration of the Survival
Period. 

Section 10.2 

 Indemnification by the CAMAC Parties. 

(a) 

The CAMAC Parties shall,
subject to the terms hereof, jointly and severally indemnify, defend and hold
harmless the CEI Parties (which term, for the purposes of this Article X shall
include any of the CEI Parties’ successors) and permitted assigns (the
“CEI Indemnified Parties”) from and against any liabilities, loss,
claims, damages, fines, penalties, expenses (including costs of investigation
and defense and reasonable attorneys’ fees and court costs) (collectively,
“Damages”) arising from: (i) any debts, claims, liabilities, or
obligations of the CAMAC Parties not expressly assumed by CEI Parties pursuant
to this Agreement (including the liabilities retained by the CAMAC Parties
pursuant to Section 1.3); (ii) any breach of any representation or warranty made
by the CAMAC Parties in Article IV or in any certificate delivered by the CAMAC
Parties pursuant to this Agreement; (iii) any breach by any CAMAC Party of its
covenants or obligations in this Agreement to be performed or complied with by
such CAMAC Party at or prior to the Closing; or (iv) any breach by
any CAMAC Party of its representations or warranties, covenants or obligations
in this Agreement or in any certificate delivered by the CAMAC Parties pursuant
to this Agreement. 

29 

(b) 

Pursuant to the provisions of
this Article X, if any claim for indemnification is to be brought against the CAMAC Parties on behalf of or by right of any CEI Party, such claim shall be
determined and approved by a committee of directors comprised of all Independent
Directors. Any settlement of any claim described in the immediately preceding
sentence shall be determined and approved by the Independent Committee. Any
determination or approval of the Independent Committee made pursuant to the
provisions of this Article X shall be by majority vote. 

(c) 

The amount of any and all indemnifiable Damages suffered by the CEI Indemnified Parties and agreed to be
paid by the CAMAC Parties shall be paid in cash, or, at the option of the CEI
Parties, may be paid in the return of a specified number of Consideration
Shares. If the CEI Parties opt to receive shares in lieu of receiving cash for
any indemnifiable Damages, then the CEI Parties shall notify the CAMAC Parties
in writing of their intent to exercise such option. The number of shares to be
returned to the CEI Indemnified Parties shall have a fair market value equal to
the aggregate amount of the indemnifiable Damages agreed to be paid by the CAMAC
Parties. The fair market value of such shares shall be determined by calculating
the average closing price of CEI’s Common Stock over a period of 30 days,
counting back from the first business day immediately prior to the official
determination of Damages hereunder. 

Section 10.3 

 Indemnification by CEI. 

(a) 

Each of the CEI Parties
shall, subject to the terms hereof, jointly and severally indemnify, defend and
hold harmless the CAMAC Parties and their respective successors and permitted
assigns (the “CAMAC Indemnified Parties”) from and against any
Damages arising from: (i) any breach of any representation or warranty made by
the CEI Parties in Article V or in any certificate delivered by the CEI Parties
pursuant to this Agreement; or (ii) any breach by any CEI Party, of its
covenants or obligations in this Agreement to be performed or complied with by
such CEI Party at or prior to the Closing. 

(b) 

The amount of any and all
Damages suffered by the CAMAC Indemnified Parties shall be paid in cash, or, at
the option of the CAMAC Parties, may be paid in newly issued shares of CEI’s
Common Stock. If the CAMAC Parties opt to receive newly issued shares in lieu of
receiving cash for any indemnifiable Damages, the number of shares to be issued
to the CAMAC Indemnified Parties shall have a fair market value equal to the
aggregate amount of the indemnifiable Damages agreed to be paid by the CEI
Parties. The fair market value of such shares shall be determined by calculating
the average closing price of CEI’s Common Stock over a period of 30 days,
counting back from the first business day immediately prior to the official
determination of Damages hereunder. 

30 

Section 10.4 

 Limitations on Indemnity. 

(a) 

Notwithstanding any other
provision in this Agreement to the contrary, no CEI Indemnified Party shall be
entitled to indemnification pursuant to Section 10.2, unless and until the
aggregate amount of Damages to the CEI Indemnified Parties with respect to such
matters under Section 10.2 exceeds $5,000,000 (the “Deductible”),
and then only to the extent such Damages exceed the Deductible; provided
that the aggregate amount of Damages payable by the CAMAC Parties to the CEI
Indemnified Parties hereunder shall not exceed $25,000,000 (the
“Cap”) unless the Damages arise from or otherwise relate to the
breach of representations made in Sections 4.1, 4.2, 4.3, 4.4, 4.6 and 4.9 by
the CAMAC Parties. 

(b) 

Notwithstanding any other
provision in this Agreement to the contrary, the CAMAC Parties shall not be
liable to, or indemnify the CEI Indemnified Parties for any Damages or indemnify
the CEI Indemnified Parties for any Damages that are punitive (except to the
extent constituting third party punitive claims), special, consequential,
incidental, exemplary, lost profits or otherwise not actual damages. The CEI
Indemnified Parties shall not use “multiple of profits” or “multiple of cash
flow” or any similar valuation methodology in calculating the amount of any
Damages. This Article X constitutes the CEI Parties’ sole and exclusive remedy
for any and all Damages or other claims relating to or arising from this
Agreement and the Transactions. 

(c) 

Notwithstanding any other
provision in this Agreement to the contrary, no CAMAC Indemnified Party shall be
entitled to indemnification pursuant to Section 10.3, unless and until the
aggregate amount of Damages with respect to such matters under Section 10.3
exceeds the Deductible, and then only to the extent such Damages exceed the
Deductible; provided that the aggregate amount of Damages payable by any
CEI Party to the CAMAC Parties hereunder shall not exceed the Cap unless the
Damages arise from or otherwise relate to the breach of any of the
representations made in Sections 5.1, 5.2, 5.3, 5.4, 5.6, 5.7, 5.17 and 5.18 by
the CEI Parties. 

(d) 

Notwithstanding any other
provision in this Agreement to the contrary, CEI shall not be liable to, or
indemnify any CAMAC Party for any Damages (i) resulting from any non-fulfillment
or breach of any such representations, warranties, covenants, and obligations of
which the CAMAC Parties had knowledge on or prior to the Closing Date; (ii) that
are punitive (except to the extent constituting third party punitive claims),
special, consequential, incidental, exemplary or otherwise not actual damages or
(iii) that are in the nature of lost profits or any diminution in value of
property or equity. The CAMAC Parties shall not use “multiple of profits” or
“multiple of cash flow” or any similar valuation methodology in calculating the
amount of any Damages. This Article X constitutes the CAMAC Parties’ sole and
exclusive remedy for any and all Damages or other claims relating to or arising
from this Agreement and the Transactions. 

Section 10.5

 Defense of Third
Party Claims. If the Independent Committee determines to make a claim for
indemnification on behalf of the CEI Parties under Section 10.2 or any CAMAC
Party makes a claim for indemnification under Section 10.3 (each as applicable an “Indemnitee”), the Independent Committee or
such CAMAC Party as applicable shall notify the indemnifying party (an
“Indemnitor”) of the claim in writing promptly after receiving
notice of any action, lawsuit, proceeding, investigation, demand or other claim
against the Indemnitee (if by a third party), describing the claim, the amount
thereof (if known and quantifiable) and the basis thereof in reasonable detail
(such written notice, an “Indemnification Notice”);
provided that the failure to so notify an Indemnitor shall not relieve
the Indemnitor of its obligations hereunder except to the extent that (and only
to the extent that) such failure shall have caused the damages for which the
Indemnitor is obligated to be greater than such damages would have been had the
Indemnitee given the Indemnitor prompt notice hereunder. Any Indemnitor shall be
entitled to participate in the defense of such action, lawsuit, proceeding,
investigation or other claim giving rise to an Indemnitee’s claim for
indemnification at such Indemnitor’s expense, and at its option shall be
entitled to assume the defense thereof by appointing a reputable counsel
reasonably acceptable to the Indemnitee to be the lead counsel in connection
with such defense; provided, that the Indemnitee shall be entitled to
participate in the defense of such claim and to employ counsel of its choice for
such purpose; provided, however, that the fees and expenses of
such separate counsel shall be borne by the Indemnitee and shall not be
recoverable from such Indemnitor under this Article X. If the Indemnitor shall
control the defense of any such claim, the Indemnitor shall be entitled to
settle such claims; provided, that the Indemnitor shall obtain the prior
written consent of the Indemnitee (which consent shall not be unreasonably
withheld, conditioned or delayed) before entering into any settlement of a claim
or ceasing to defend such claim if, pursuant to or as a result of such
settlement or cessation, injunctive or other equitable relief will be imposed
against the Indemnitee or if such settlement does not expressly and
unconditionally release the Indemnitee from all liabilities and obligations with
respect to such claim. If the Indemnitor assumes such defense, the Indemnitor
shall not be liable for any amount required to be paid by the Indemnitee that
exceeds, where the Indemnitee has unreasonably withheld or delayed consent in
connection with the proposed compromise or settlement of a third party claim,
the amount for which that third party claim could have been settled pursuant to
that proposed compromise or settlement. In all cases, the Indemnitee shall
provide its reasonable cooperation with the Indemnitor in defense of claims or
litigation, including by making employees, information and documentation
reasonably available. If the Indemnitor shall not assume the defense of any such
action, lawsuit, proceeding, investigation or other claim, the Indemnitee may
defend against such matter as it deems appropriate; provided that the
Indemnitee may not settle any such matter without the written consent of the
Indemnitor (which consent shall not be unreasonably withheld, conditioned or
delayed) if the Indemnitee is seeking or will seek indemnification hereunder
with respect to such matter.

31 

     Section 10.6 

 Determining
Damages. The amount of Damages subject to indemnification under Section 10.2
or Section 10.3 shall be calculated net of (a) any Tax Benefit inuring to the
Indemnitee on account of such Damages, and (b) any insurance proceeds or other
amounts under indemnification agreements received or receivable by the
Indemnitee on account of such Damages. If the Indemnitee receives a Tax Benefit
on account of such Damages after an indemnification payment is made to it, the
Indemnitee shall promptly pay to the Person or Persons that made such
indemnification payment the amount of such Tax Benefit at such time or times as
and to the extent that such Tax Benefit is realized by the Indemnitee. For
purposes hereof, “Tax Benefit” shall mean any refund of Taxes to
be paid or reduction in the amount of Taxes which otherwise would be paid by the
Indemnitee, in each case computed at the highest marginal tax rates applicable
to the recipient of such benefit. To the extent Damages are recoverable by insurance, the Indemnitees shall take all
commercially reasonable efforts to obtain maximum recovery from such insurance.
In the event that an insurance or other recovery is made by any Indemnitee with
respect to Damages for which any such Person has been indemnified hereunder,
then a refund equal to the aggregate amount of the recovery shall be made
promptly to the Person or Persons that provided such indemnity payments to such
Indemnitee. The Indemnitors shall be subrogated to all rights of the Indemnitees
in respect of Damages indemnified by the Indemnitors. The Indemnitees shall take
all commercially reasonable efforts to mitigate all Damages upon and after
becoming aware of any event which could reasonably be expected to give rise to
Damages. For Tax purposes, the Parties agree to treat all payments made under
this Article X as adjustments to the consideration received for the CAMAC
Shares. 

32 

Section 10.7 

 Right of
Setoff. To the extent that any Party is obligated to indemnify any other
Party after Closing under the provisions of this Article X for Damages reduced
to a monetary amount, such Party after Closing shall have the right to decrease
any amount due and owing or to be due and owing under any agreement with the
other Party, whether under this Agreement or any other agreement between such
Parties on the one hand, and any of the other Party or any of their respective
Affiliates, Subsidiaries or controlled persons or entities on the other. 

Section 10.8 

 Limitation on Recourse; No Third Party
Beneficiaries. 

(a) 

No claim shall be brought or maintained by any Party or its respective
successors or permitted assigns against any officer, director, partner, member,
agent, representative, Affiliate, equity holder, successor or permitted assign
of any Party which is not otherwise expressly identified as a Party, and no
recourse shall be brought or granted against any of them, by virtue of or based
upon any alleged misrepresentation or inaccuracy in or breach of any of the
representations, warranties, covenants or obligations of any Party set forth or
contained in this Agreement or any exhibit or schedule hereto or any certificate
delivered hereunder. 

(b)

Except as set forth in Section 10.2(a) and 10.3(a), the provisions of this
Article X are for the sole benefit of the Parties and nothing in this Article X,
express or implied, is intended to or shall confer upon any other Person any
legal or equitable right, benefit or remedy of any nature whatsoever under or by
reason of this Article X.

ARTICLE XI 

TERMINATION 

Section 11.1 

 Methods of
Termination. Unless waived by the Parties hereto in writing, the
Transactions may be terminated and/or abandoned at any time but not later than
the Closing: 

(a) 

by mutual written consent of the Parties; 

(b) 

by any Party, if the Closing
has not occurred by the later of (i) January 31, 2011 or (ii) such other date
that has been agreed by the Parties; 

33 

(c) 

by any CAMAC Party, if there
has been a breach by the CEI Parties of any representation, warranty, covenant
or agreement contained in this Agreement which has prevented the satisfaction of
the conditions to the obligations of the CAMAC Parties at the Closing under
Article IX and such violation or breach has not been waived by the CAMAC Parties
or cured by the CEI Parties within ten (10) business days after written notice
thereof from the CAMAC Parties; or 

(d) 

by the CEI Parties, if there
has been a breach by the CAMAC Parties of any representation, warranty, covenant
or agreement contained in this Agreement which has prevented the satisfaction of
the conditions to the obligations of the CEI Parties at the Closing under
Article IX and such violation or breach has not been waived by the CEI Parties
or cured by the CAMAC Parties within ten (10) business days after written notice
thereof from the CEI Parties. 

Section 11.2 

 Effect of Termination. 

(a) 

In the event of termination
and abandonment by either CEI or the CAMAC Parties, or both of them, pursuant to
Section 11.1 hereof, written notice thereof shall forthwith be given to the
other Party (as applicable), and except as set forth in this Article XI, all
further obligations of the Parties shall terminate, no Party shall have any
right against the other Party hereto, and each Party shall bear its own costs
and expenses. 

(b) 

If the Transactions are terminated and/or abandoned as provided herein: 

(i) 

each Party hereto will destroy all documents, work papers and other material
(and all copies thereof) of the other Party relating to the Transactions,
whether so obtained before or after the execution hereof, to the Party
furnishing the same; 

(ii) 

all confidential information received by either Party hereto with respect to the
business of the other Party hereto shall be treated in accordance with Section
9.2 hereof, which shall survive such termination or abandonment. The provisions
of Article X and Article XI shall survive termination of this Agreement; and 

Section 11.3 

 Termination Recovery and Fee. 

(a) 

If the Agreement is properly
terminated pursuant to Sections 11.1(c), then CAMAC will be entitled to damages
in the amount of Five Hundred Thousand Dollars ($500,000) immediately upon
termination of this Agreement as liquidated damages and not as a penalty amount,
and in lieu of any other right or remedy that the CEI Parties may have against
the CAMAC Parties for such termination or breach. 

(b) 

If this Agreement is properly
terminated pursuant to Sections 11.1(d), then CEI will be entitled to damages in
the amount of Five Hundred Thousand Dollars ($500,000) immediately upon
termination of this Agreement as liquidated damages and not as a penalty amount, and in lieu of any other
right or remedy that the CEI Parties may have against the CAMAC Parties for such
termination or breach. 

34 

(c) 

Except for the rights
specified in Section 11.2 and the right to liquidated damages provided for in
Section 11.3, no Person shall have any rights to any other remedy or damages,
whether at law or equity, in contract, in tort or otherwise upon the termination
of this Agreement. Each of CEI and the CAMAC Parties acknowledge that the
covenants and agreements contained in this Article XI are an integral part of
this Agreement. If CEI or the CAMAC Parties fail to pay the liquidated damages
amounts provided for in Section 11.3 when due, CEI or the CAMAC Parties, as the
case may be, will reimburse the other party for all Expenses incurred by the
other Party (including Expenses of counsel) in connection with the collection
under and enforcement of this Article XI. 

ARTICLE XII 

MISCELLANEOUS 

Section 12.1 

 Notices. All
notices, requests, claims, demands and other communications under this Agreement
shall be in writing and shall be deemed given upon receipt by the Parties at the
addresses set forth on the signature pages hereto (or at such other address for
a Party as shall be specified in writing to all other Parties). 

Section 12.2 

 Amendments;
Waivers; No Additional Consideration. Except as otherwise provided in this
Agreement, no provision of this Agreement may be waived or amended except in a
written instrument signed by all of the Parties hereto. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall
be deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of any Party to exercise any right hereunder in any
manner impair the exercise of any such right. 

Section 12.3 

Interpretation. When a reference is made in this Agreement to a Section
or Article, such reference shall be to a Section or Article of this Agreement
unless otherwise indicated. Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be deemed to be followed by
the words “without limitation.” 

Section 12.4 

 Severability.
If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule or Law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the Transactions
is not affected in any manner materially adverse to any Party (it being
understood that if any provision of Section 11.3 is invalid, illegal or
incapable of being enforced by any Law or public policy, it will be deemed to be
a change to the economic and legal substance of the Transactions that is
materially adverse to the Parties and will entitle either the CEI Parties or the
CAMAC Parties to terminate the Agreement without penalty and none of the Parties
and their respective shareholders and Affiliates will have recourse against any
other Parties). Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the Parties shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the
Parties as closely as possible in an acceptable manner to the end that
Transactions are fulfilled to the extent possible. 

35 

Section 12.5 

 Counterparts;
Facsimile Execution. This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each of
the Parties and delivered to the other Parties. Facsimile execution and delivery
of this Agreement is legal, valid and binding for all purposes. 

Section 12.6 

 Entire Agreement;
Third Party Beneficiaries. This Agreement, taken together with all Exhibits,
Annexes and Schedules hereto (a) constitute the entire agreement, and supersede
all prior agreements and understandings, both written and oral, among the
Parties with respect to the Transactions and (b) are not intended to confer upon
any Person other than the Parties any rights or remedies. 

Section 12.7 

 Governing
Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of Texas regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws thereof. 

Section 12.8 

 Dispute Resolution. 

(a) 

All disputes among the Parties arising out of or relating to this Agreement will
be resolved by mandatory, binding arbitration in accordance with this Section
12.8. 

(b) 

Before any arbitration is
commenced pursuant to this Section 12.8, the Parties must endeavor to reach an
amicable settlement of the dispute through friendly negotiations. 

(c)

If no mutually acceptable settlement of the dispute is made within the sixty
(60) days from the commencement of the settlement negotiation or if any Party
refuses to engage in any settlement negotiation, any Party may submit the
dispute for arbitration.

(d) 

Any arbitration commenced
pursuant to this Section 12.8 will be conducted in Houston, Texas under the
Arbitration Rules of the United Nations Commission on International Trade Law by
arbitrators appointed in accordance with such rules. The arbitration and
appointing authority will be the American Arbitration Association
(“AAA”). The arbitration will be conducted by a panel of three
arbitrators, one chosen by the CEI Representatives, one chosen by the CAMAC
Parties and the third chosen by agreement of the two selected arbitrators;
failing agreement within thirty (30) days prior to commencement of the
arbitration proceeding, the AAA will appoint the third arbitrator. The
proceedings will be confidential and conducted in English. The arbitral tribunal
will have the authority to grant any equitable and legal remedies that would be
available in any judicial proceeding instituted to resolve a disputed matter,
and its award will be final and binding on the Parties. The arbitral tribunal
will determine how the Parties will bear the costs of the arbitration.
Notwithstanding the foregoing, each Party will have the right at any time to
immediately seek injunctive relief, an award of specific performance or any other equitable relief against
the other Party in any court or other tribunal of competent jurisdiction. During
the pendency of any arbitration or other proceeding relating to a dispute
between the Parties, the Parties will continue to exercise their remaining
respective rights and fulfill their remaining respective obligations under this
Agreement, except with regard to the matters under dispute. 

36 

Section 12.9 

 Assignment.
Neither this Agreement nor any of the rights, interests or obligations under
this Agreement shall be assigned, in whole or in part, by operation of Law or
otherwise by any of the Parties without the prior written consent of the other
Parties. Any purported assignment without such consent shall be void. Subject to
the preceding sentences, this Agreement will be binding upon, inure to the
benefit of, and be enforceable by, the Parties and their respective successors
and assigns. 

Section 12.10 

 Publicity.
The terms of this Agreement shall be considered confidential information of the
Parties. The Parties agree that the specific provisions hereof shall not be
revealed or disclosed by it without the prior written consent of all the Parties
hereto, except to the Representatives or to the extent such disclosure is
required by applicable Law or regulation. 

[Signature Page Follows] 

37 

IN WITNESS WHEREOF, the Parties
hereto have caused this Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 

CAMAC ENERGY INC. 

By: /s/ Byron A. Dunn 

Bryon A. Dunn 

President and Chief
Executive Officer 

Address for Notice 

1330 Post Oak Blvd. 

Suite 2575

Houston, Texas 77056 

CAMAC PETROLEUM LIMITED 

By: /s/ Byron A. Dunn 

Byron A. Dunn 

Director 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

SIGNATURE PAGES FOR CAMAC PARTIES FOLLOW] 

 

Signature Page to Purchase and Continuation Agreement

IN WITNESS WHEREOF, the Parties
hereto have caused this Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 

CAMAC ENERGY HOLDINGS LIMITED 

By: /s/ Dr. Tunde Fahm 

Name: Dr. Tunde Fahm 

Title: Director

Address for Notice 

c/o CAMAC International Corporation

1330 Post Oak Blvd. 

Suite 2200 

Houston, Texas 77056 

CAMAC INTERNATIONAL (NIGERIA) LIMITED 

By: /s/ Mickey A. Lawal 

Name: Mickey A. Lawal 

Title: Director

Address for Notice 

c/o CAMAC International Corporation

1330 Post Oak Blvd. 

Suite 2200 

Houston, Texas 77056 

 

[SIGNATURES FOR CAMAC PARTIES CONTINUE] 

 

Signature Page to Purchase and Continuation Agreement

ALLIED ENERGY PLC 

By: /s/ Mickey A. Lawal 

Name: Mickey A. Lawal 

Title: Director

Address for Notice 

c/o CAMAC International Corporation

1330 Post Oak Blvd. 

Suite 2200 

Houston, Texas 77056 

 

Signature Page to Purchase and Continuation Agreement

ANNEX A 

Definitions 

“AAA” has the meaning set forth in Section 12.8(d) of
the Agreement. 

“Acquisition Proposal” has the meaning set forth in
Section 6.7(a) of the Agreement. 

“Action” has the meaning set forth in Section 4.5 of the
Agreement. 

“Affiliates” shall mean
any Person that directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with the Person
specified. For purposes of this definition, control of a Person means the power,
direct or indirect, to direct or cause the direction of the management and
policies of such Person whether by Contract or otherwise and, in any event and
without limitation of the previous sentence, any Person owning fifty percent
(50%) or more of the voting securities of a second Person shall be deemed to
control that second Person. For the purposes of this definition, a Person shall
be deemed to control any of his or her immediate family members. 

“Agreement” has the meaning set forth in the preamble to
the Agreement. 

“Allied” has the meaning set forth in the preamble to
the Agreement. 

“Allied Assignment” has the meaning set forth in the
Recitals of the Agreement. 

“CAA” means the federal Clean Air Act, as amended. 

“CAMAC Constituent
Instruments” means the memorandum and articles of association of each of the
CAMAC Parties together with any of their statutory registers and such
constituent instruments of any of them as may exist, each as amended to the date
of the Agreement. 

“CAMAC Disclosure Schedule” is attached hereto as
Schedule A. 

“CAMAC Indemnified
Parties” has the meaning set forth in Section 10.3(a) of the
Agreement. 

“CAMAC Material Adverse
Effect” means any event, change or effect that is materially adverse to the
condition (financial or otherwise) of the Contract Rights, the OML Related
Agreements or would prevent or materially alter or delay any of the
Transactions. Notwithstanding the foregoing, the definition of CAMAC Material
Adverse Effect shall not include events caused by (A) changes in Nigerian
economic conditions, except to the extent that the same disproportionately
impact any of the Contract Rights, the OML Related Agreements, as compared to
similar assets of other similarly situated companies; (B) changes to the
economic conditions (including changes in commodity prices) affecting the
industries in which any of the Contract Rights are exercised, the OML Related
Agreements are performed or in which the area covered by OML 120/121 is located,
except to the extent that the same disproportionately impact any of the Contract
Rights, the OML Related Agreements; (C) changes related to or arising from the execution, announcement or performance of, or compliance
with, this Agreement or the consummation of the Transactions, including the
impact thereof on relationships, contractual or otherwise, Governmental
Authority, customers, suppliers, distributors or employees; (D) changes in
accounting requirements or principles or any change in applicable Laws or the
interpretation thereof; (E) the failure to meet any projections or budgets; or
(F) matters listed in the CAMAC Disclosure Schedule. 

A-1 

“CAMAC Party” or “CAMAC
Parties” has the meaning set forth in the preamble to the Agreement. 

“Cap” has the meaning set forth in Section 10.4(a) of
the Agreement. “CEHL” has the meaning set forth in the preamble to the
Agreement. “CEI” has the meaning set forth in the preamble to the
Agreement. 

“CEI Constituent
Instruments” means the articles of incorporation and bylaws of CEI, together
with any memorandum and articles of association, statutory registers and such
constituent instruments of any of its Subsidiaries as may exist, each as amended
as of the date of the Agreement. 

“CEI Disclosure Schedule” is attached hereto as
Schedule B. 

“CEI Indemnified Parties” has the meaning set forth in
Section 10.2(a) of the Agreement. 

“CEI Material Adverse
Effect” means any event, change or effect that is materially adverse to the
condition (financial or otherwise), properties, assets, liabilities, business,
operations or results of operations of CEI and its subsidiaries, taken as a
whole. Notwithstanding the foregoing, the definition of CEI Material Adverse
Effect shall not include events caused by (A) changes in the PRC economic
conditions (including changes in commodity prices), except to the extent that
the same disproportionately impact the CEI Parties as compared to other
similarly situated companies; (B) changes to the economic conditions affecting
the industries in which the CEI Parties operate, except to the extent that the
same disproportionately impact the CEI Parties as compared to other companies in
the industries in which the CEI Parties operate; (C) changes related to or
arising from the execution, announcement or performance of, or compliance with,
this Agreement or the consummation of the Transactions, including the impact
thereof on relationships, contractual or otherwise, Governmental Authority,
customers, suppliers, distributors or employees; (D) changes in accounting
requirements or principles or any change in applicable Laws or the
interpretation thereof; (E) the failure to meet any projections or budgets; or
(F) matters listed in the Disclosure Schedules. 

“CEI Parties” has the meaning set forth in the preamble
to the Agreement. 

“CERCLA” shall mean the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 as
amended. 

“CINL” has the meaning set forth in the preamble to the
Agreement. 

A-2 

“Closing” has the meaning set forth in Section 2.1 of
the Agreement. 

“Closing Cash Consideration” has the meaning set forth
in Section 3.1 of the Agreement. 

“Closing Date” has the meaning set forth in Section 2.1
of the Agreement. 

“Code” means the United States Internal Revenue Code of
1986, as amended. “Common Stock” means the common stock of CEI, par value
$0.001 per share. “Consent” has the meaning set forth in Section 4.6 of
the Agreement. 

“Consideration” has the meaning set forth in Section
3.1(d) of the Agreement. 

“Consideration Shares” has the meaning set forth in
Section 3.1(a) of the Agreement. 

“Contract” means any
contract, agreement, option, right to acquire, preferential purchase right,
preemptive right, warrant, indenture, debenture, note, bond, loan, loan
agreement, collective bargaining agreement, lease, mortgage, franchise, license,
purchase order, commitment, letter of credit, guaranty, surety or any other
legally binding arrangement, whether oral or written. 

“Contract Rights” has the meaning set forth in the
Recitals of the Agreement. 

“CPL” has the meaning set forth in the preamble to the
Agreement. 

“Damages” has the meaning set forth in Section 10.2(a)
of the Agreement. 

“Data” means copies of all
documents, computer files, records, data and other materials in the CAMAC
Parties’ possession relating to OML 120/121, including, but not limited to, such
materials necessary or otherwise reasonably requested by the CEI Parties in
order for the CEI Parties to undertake field development planning, all such
material to be in “as-is” condition. 

“Deductible” has the meaning set forth in Section
10.4(a) of the Agreement. 

“Deliverables” has the meaning set forth in Section
9.3(i) of the Agreement. 

“Disclosure Materials” shall have the meaning set forth
in Section 5.20 of the Agreement. 

“Disclosure Schedules”
means, collectively, the CAMAC Disclosure Schedule and the CEI Disclosure
Schedule. 

“Engineering Workstation”
means one (1) engineering workstation located in Lagos, Nigeria, including
corresponding engineering software and licenses, to the extent such software
licenses are assignable or transferrable by the CAMAC Parties to the CEI
Parties, and all in “as-is” condition. 

“Environment” means soil,
land surface or subsurface strata, surface waters (including navigable waters,
ocean waters, streams, ponds, drainage basins, and wetlands), groundwaters, drinking water supply, stream sediments, ambient air (including
indoor air), plant and animal life, and any other environmental medium or
natural resource. 

A-3 

“Environmental
Authorization” means any license, permit, certificate, order, approval,
consent, notice, registration, exemption, variance, filing or other form of
permission required under any Environmental Law. 

“Environmental Laws” means
all Laws of any Governmental Authority currently in effect relating to pollution
or protection of human health, safety, natural resources or the environment
(including ambient air, surface water, ground water, land surface or subsurface
strata), including Laws relating to Releases or threatened Releases of Hazardous
Materials or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, transport or handling of Hazardous Materials.
Environmental Laws include CERCLA, RCRA, SARA, CAA, OSHA, FWPCA, FIFRA, OPA and
TSCA. 

“Environmental
Liabilities” means any and all obligations to pay the amount of any judgment
or settlement, the cost of complying with any settlement, judgment or order for
injunctive or other equitable relief, the cost of compliance or corrective
action in response to any notice, demand, directive or request from a
Governmental Authority, the cost of performing any investigatory or remedial
action required under Environmental Laws in response to a Release of Hazardous
Materials (including any work performed under any voluntary cleanup program),
the amount of any administrative or civil penalty or criminal fine or
supplemental environmental project, and any court costs and reasonable amounts
for attorneys’ fees, fees for witnesses and experts, and costs of investigation
and preparation for defense of any Action or proceeding, regardless of whether
such Action or proceeding is threatened, pending or completed, that may be or
have been asserted against or imposed upon any owner or operator of the assets
or the business of the Party, to the extent any of the foregoing arise out of:

(a)

failure of a Party or any of its respective Affiliates, any predecessor or the
business conducted by the Party to comply at any time before the Closing Date
with all Environmental Laws;

(b) 

presence of any Hazardous Materials on, in, under, at or in any way affecting
any property used in the business conducted by the Party at any time before the
Closing Date; 

(c) 

a Release or threatened Release at any time before the Closing Date of any
Hazardous Materials on, in, at, under or in any way affecting the business
conducted by the Party or any property used therein or at, on, in, under or in
any way affecting any adjacent site or facility; 

(d) 

a Release or threatened Release of any Hazardous Materials on, in, at, under or
from any real property other than those described in (c), immediately above, and
to which any Party or any of its respective Affiliates or any Predecessor
transported or disposed, or arranged for the transportation or disposal of,
Hazardous Materials generated at or arising from operation of the business
conducted by the Party at any time before the Closing Date; 

A-4 

(e)

identification of any Party
or any of its respective Affiliates or any Predecessor as a potentially
responsible party under CERCLA or under any Environmental Law similar to CERCLA;

(f) 

presence at any time before the Closing Date of any above-ground and/or
underground storage tanks, or any asbestos-containing material on, in, at or
under any property used in connection with the business conducted by the Party;
or 

(g) 

any and all Actions for injury or damage to persons or property arising out of
exposure to Hazardous Materials originating in connection with the business
conducted by the Party or any adjoining property, resulting from operation
thereof, or located at the location where such business is conducted, where such
exposure allegedly occurred prior to the Closing Date. 

“Equity Interests” means
any and all shares, interests, participations or other equivalents (however
designated) of capital stock of a corporation, any and all ownership interests
in a limited liability company, partnership, association or other business
entity (other than a corporation), and any and all warrants, options or other
rights to purchase or acquire any of the foregoing. 

“Exchange Act” means the Securities Exchange Act of
1934, as amended. 

“Expenses” shall mean all
reasonable out-of-pocket expenses (including all reasonable fees and expenses of
counsel, accountants, investment bankers, experts and consultants to a party
hereto and its Affiliates) incurred by a party on its behalf in connection with
or related to the authorization, preparation, diligence, negotiation, execution,
performance and enforcement of the Transaction Documents. 

“FCPA” has the meaning set forth in Section 4.11 of the
Agreement. 

“FIFRA” means the Federal Insecticide, Fungicide &
Rodenticide Act, as amended. 

“Financial Statements” has the meaning set forth in
Section 5.11(a) of the Agreement. 

“First Milestone
Consideration” has the meaning set forth in Section 3.1(a) of the Agreement.

“First Milestone” has the meaning set forth in Section
3.1(a) of the Agreement. 

“Fourth Milestone
Consideration” has the meaning set forth in Section 3.1(d) of the Agreement.

“Fourth Milestone” has the meaning set forth in Section
3.1(d) of the Agreement. 

“FWPCA” means the Federal Water Pollution Control Act,
as amended. 

“G & G Workstations”
means two (2) SMT geophysical workstations located in Houston, Texas, and two
(2) SMT geophysical workstations located in Lagos, Nigeria, including corresponding Micro Seismic Technology Geophysical software
(SMT) and Petrel software and licenses, to the extent such software licenses are
assignable or transferrable by the CAMAC Parties to the CEI Parties, and all in
“as-is” condition. 

A-5 

“GAAP” means generally
accepted accounting principals in the United States of America in effect from
time to time. 

“Governmental Authority”
means any national, federal, state, provincial, local or foreign government,
governmental, regulatory or administrative authority, agency or commission or
any court, tribunal or judicial or arbitral body of competent jurisdiction, or
other governmental authority or instrumentality, domestic or foreign. 

“Hazardous Materials”
means any chemical, product, material, waste or substance that, whether by its
nature or its use, is regulated or as to which liability might arise under any
Environmental Law, including: 

(a) 

solid or hazardous wastes, as
defined in RCRA or in any other Environmental Law; 

(b) 

hazardous substances, as
defined in CERCLA or in any other Environmental Law; 

(c) 

toxic substances, as defined in TSCA or in any other
Environmental Law; 

(d) 

pollutants or contaminants,
as defined in the CAA or the FWPCA, or in any other Environmental Law; 

(e) 

insecticides, fungicides or rodenticides, as defined in FIFRA or in any other Environmental Law; 

(f) 

petroleum hydrocarbons including, without limitation, natural gas, crude oil or
any components, fractions or derivatives thereof; and 

(g) 

gasoline or any other
petroleum product or byproduct, polychlorinated biphenyls, asbestos, urea
formaldehyde, naturally occurring radioactive materials, other radioactive
materials or radon. 

“HOA” has the meaning set forth in the Recitals of the
Agreement. 

“Indemnitee” has the meaning set forth in Section 10.5
of the Agreement. 

“Indemnitor” has the meaning set forth in Section 10.5
of the Agreement. 

“Indemnification Notice” has the meaning set forth in
Section 10.5 of the Agreement. 

“Independent Director” has
the meaning given to such term in Section 804 of the NYSE Amex Company Guide.

A-6 

“Intellectual Property”
means all United States and foreign (a) patents, patent applications, utility
models or statutory invention registrations (whether or not filed), and
invention disclosures; (b) trademarks, service marks, logos, designs, trade
names, trade dress, domain names and corporate names and registrations and
applications for registration thereof (whether or not filed) and the goodwill
associated therewith; (c) copyrights, whether registered or unregistered, and
registrations and applications for registration thereof (whether or not filed)
and other works of authorship, whether or not published; and (d) trade secrets,
proprietary information, confidential information, know-how, inventions,
customer lists and information, supplier lists, manufacturer lists,
manufacturing and production processes and techniques, blueprints, drawings,
schematics, manuals, software, firmware and databases. 

“Interim Financial
Statements” has the meaning set forth in Section 5.11(a) of the Agreement.

“Investment Company Act” has the meaning set forth in
Section 5.21 of the Agreement. 

“Judgment” means any judgment, order or decree. 

“Knowledge”, (i) with
respect to the CAMAC Parties shall mean the actual knowledge of Kamoru Lawal,
Carolyn Anandu, and Segun Omidele, and (ii) with respect to the CEI Parties
shall mean the actual knowledge of Byron A. Dunn, Abiola Lawal and Richard Grigg
and the members of its Board of Directors. 

“Latest Balance Sheet” has the meaning set forth in
Section 5.11(a) of the Agreement. 

“Law” means any federal,
state, local, municipal, provincial, foreign or other law, statute,
constitution, principle of common law, resolution, ordinance, code, edict,
decree, order, judgment, certificate, authorization, rule, regulation, ruling or
requirement issued, enacted, adopted, promulgated, implemented or otherwise put
into effect by or under the authority of any Governmental Authorities (or under
the authority of any national securities exchange upon which CEI Securities are
then listed or traded). 

“Liens” means any liens,
security interests, pledges, equities and claims of any kind, voting trusts,
shareholder agreements and other encumbrances. 

“Material Permits” has the meaning set forth in Section
4.7 of the Agreement. 

“Milestones” has the meaning set forth in Section 3.1(d)
of the Agreement. 

“Money Laundering Laws” has the meaning set forth in
Section 4.12 of the Agreement. 

“NAE” has the meaning set forth in the Recitals of the
Agreement. 

“NAE Assignment” has the meaning set forth in the
Recitals of the Agreement. “Novation Agreement” has the meaning set forth
in Recitals of the Agreement. “Novation Date” has the meaning set forth
in Section 1.2 of the Agreement. 

A-7 

“NYSE Amex” means the NYSE Amex LLC. 

“OFAC” has the meaning set forth in Section 4.13 of the
Agreement. 

“OML 120” has the meaning set forth in the Recitals of
the Agreement. 

“OML 120/121” has the meaning set forth in the Recitals
of the Agreement. 

“OML 120/121 Management
Agreement” has the meaning set forth in the Recitals of the Agreement. 

“OML Related Agreements”
has the meaning set forth in Section 4.4(a) of the Agreement. 

“OPA” means the Oil Pollution Act of 1990, as amended.

“OPL 210” has the meaning set forth in the Recitals of
the Agreement. 

“Oyo Field” has the meaning set forth in Section 1.1 of
the Agreement. 

“Oyo Purchase Agreement”
means that certain Purchase and Sale Agreement dated November 19, 2009, by and
among the CEI Parties and the CAMAC Parties in respect of certain contract
rights in the Oyo Field. 

“Party” or “Parties” has the meaning set forth in
the preamble to the Agreement. 

“Permits” mean all
governmental franchises, licenses, permits, authorizations and approvals
necessary to enable a Person to own, lease or otherwise hold its properties and
assets and to conduct its businesses as presently conducted. 

“Permitted Lien” shall
mean (a) any restriction on transfer arising under applicable securities law;
(b) any Liens for Taxes not yet due or delinquent or being contested in good
faith by appropriate proceedings for which adequate reserves have been
established in accordance with U.S. GAAP; (c) any statutory Liens arising in the
ordinary course of business by operation of Law with respect to a liability that
is not yet due and delinquent and which are not, individually or in the
aggregate, significant; (d) zoning, entitlement, building and other land use
regulations imposed by governmental agencies having jurisdiction over OML
120/121 or Contract Rights which are not violated by the current use and
operation of the Contract Rights; (e) covenants, conditions, restrictions,
easements and other similar matters of record affecting title to OML 120/121 or
Contract Rights which do not materially impair the occupancy or use of OML
120/121 or Contract Rights for the purposes for which it is currently used or
proposed to be used in connection with the such relevant Person’s business; (f)
Liens identified on title policies, title opinions or preliminary title reports
or other documents or writings included in the public records; (g) Liens arising
under worker’s compensation, unemployment insurance, social security, retirement
and similar legislation; (h) Liens of lessors and licensors arising under lease
agreements or license arrangements; and (i) those Liens set forth in the CAMAC
Disclosure Schedule. 

A-8 

“Person” shall mean an
individual, partnership, corporation, joint venture, unincorporated
organization, cooperative or a governmental entity or agency thereof. 

“PSC” has the meaning set forth in the Recitals of the
Agreement. 

“Purchase Agreement” has the meaning set forth in the
CAMAC Disclosure Schedule. 

“RCRA” shall mean the Resource Conservation and Recovery
Act, as amended. 

“Registration Rights
Agreement” has the meaning set forth in the Recitals of the Agreement. 

“Release” shall mean any
depositing, spilling, leaking, pumping, pouring, placing, emitting, discarding,
abandoning, emptying, discharging, migrating, injecting, escaping, leaching,
dumping or disposing into the indoor or outdoor environment. 

“Representatives” of
either Party shall mean such Party’s employees, accountants, auditors,
actuaries, counsel, financial advisors, bankers, investment bankers and
consultants and any other Person acting on behalf of such Party. 

“SARA” shall mean the
Superfund Amendments and Reauthorization Act of 1986, as amended. 

“SEC” means the U.S. Securities and Exchange Commission.

“SEC Reports” shall have the meaning set forth in
Section 5.20 of the Agreement. 

“Second Milestone
Consideration” has the meaning set forth in Section 3.1(b) of the Agreement.

“Second Milestone” has the meaning set forth in Section
3.1(b) of the Agreement. 

“Securities Act” means the Securities Act of 1933, as
amended. 

“Subsidiary” an entity
shall be deemed to be a “Subsidiary” of another Person if such Person directly
or indirectly owns, beneficially or of record, (a) an amount of voting
securities of other interests in such entity that is sufficient to enable such
Person to elect at least a majority of the members of such entity’s board of
directors or other governing body, or (b) at least 50% of the outstanding equity
or financial interests of such entity. 

“Survival Period” means
the applicable period of time that a representation, warranty, covenant or
obligation survives the Closing pursuant to Section 10.1 of this Agreement. 

“Taxes” includes all forms
of taxation, whenever created or imposed, and whether of the United States or
elsewhere, and whether imposed by a local, municipal, governmental, state,
foreign, federal or other Governmental Authority, or in connection with any
agreement with respect to Taxes, including all interest, penalties and additions
imposed with respect to such amounts. 

A-9 

“Tax Benefit” has the meaning set forth in Section 10.6
of the Agreement. 

“Tax Return” means all
federal, state, local, provincial and foreign Tax returns, declarations,
statements, reports, schedules, forms and information returns and any amended
Tax return relating to Taxes. 

“Third Milestone
Consideration” has the meaning set forth in Section 3.1(c) of the Agreement.

“Third Milestone” has the meaning set forth in Section
3.1(c) of the Agreement. 

“Transaction Documents”
shall have the meaning set forth in the Recitals of the Agreement. 

“Transactions” has the meaning set forth in the Recitals
of the Agreement. 

“TSCA” means the Toxic Substances Control Act, as
amended. 

“U.S. GAAP” means generally accepted accounting
principles of the United States. 

“Year-End Financial
Statements” has the meaning set forth in Section 5.11(a) of the Agreement

A-10f8k12810ex10ixx_swissinso.htm

Exhibit 10.19

	
 

                                                                              

	
SWISSINSO SA

EPFL — PSE (Parc Scientifique)

Batiment D — 3e etage

Avenue J.-D. Colladon

CH-1015 Lausanne

T. +41 21 693 86 40

F. +41 21 693 86 45

info@swissinso.com

www.swissinso.com

 

CONSULTING AGREEMENT

 

 

 

Between

 

Mr Michel GRUERING, Residence « Riant-Chateau » - Avenue de la Riviera 4, 1820 Territet

 

(below " the Consultant ")

 

And

 

SwissINSO SA, EPFL, PSE, Rue J.D. Colladon, Building D - 3rd floor, 1015 Lausanne

 

(below : " The Company ").

 

It is agreed as follows :

 

1. MANDATE

 

The Company commissions the Consultant for the tasks defined in Exhibit I.

 

2. REMUNERATION

 

2.1 The Consultant receives a fixed remuneration of 16'000.- CHF per month.

 

2.2 For any sales contract, investment of third party, strategic partnership, etc. directly brought by the Consultant, a bonus could be allocated which will be defined as a function of the achievements. It will be determined in the sole discretion of the Board of directors.

 

3. OBJECTIVES

 

The objectives of missions that the Consultant is entrusted with are set up by the Company within Exhibit I.

 

4. FEES

 

4.1 The expenses of the Consultant are paid back by the Company on the basis of bills presented jointly with justifications, provided they are related to the activity undertaken by the Consultant for the Company.

 

4.2 Work delegation to third parties, business trips planning, transportation and accommodation costs of the Consultant and third parties must be previously presented to the CEO of the Cgtnpany for approval.

 

4.3 The Consultant is entitled to receive a fixed and clear compensation of CHF 2'800.- for the costs of vehicle, including but not limited to leasing, gas, insurances, repairs and tires.

 

  

1

  

 

4.4 Consultant's mobile phone costs, meaning the monthly subscription and the effective costs of business communication are supported by the Company.

 

5. MATERIAL

 

A fully equipped office, a laptop, a mobile phone and a secretariat will be available for the Consultant for the period of validity of this Agreement.

 

6. TERMINATION

 

This Agreement is valid from the July 1st 2010 until June 30th 2011. Without termination by either party by June 30th 2011, this Agreement will be extended for another year. Exhibit I shall be adapted accordingly. For the avoidance of doubt, Article 334 al. 2 CO is excluded, since this agreement is a mandate agreement.

 

7. CONFIDENTIALITY

 

	
7.1

	
The Consultant agrees not to reveal or disclose neither any business secrets nor any intellectual property rights of the Company to any person external to the Company during the term of his contract and for 1 year after the end of it.

 

	
7.2

	
 The Consultant agrees to keep strictly confidential the strategic information to which he will have access to due to his role within the Company.

 

8. REPRESENTATIONS AND WARRANTIES

 

	
8.1

	
 The Consultant represents and warrants that he meets all legal independence requirements to operate as a Consultant within the Company and that all the required authorizations to act as Consultant for the Company have been granted to him.

 

	
8.2 

	
The Consultant shall support all insurances fees required to practice as an independent Consultant.

 

9. APPLICABLE LAW AND PLACE OF JURISDICTION

 

In the event of dispute with regard to any element of this Agreement, the place of jurisdiction is Lausanne, and Swiss law shall prevail.

 

The English version is a translation and the French version shall prevail. 

 

Signed in Lausanne on December 9th, 2010

 

In two original copies

 

	 The Consultant:	 	 The Company
	 	 	 
	 /s/ Michel Gruering	 	 /s/ Yves Ducommun
	 Michel Gruering	 	 Yves Ducommun
	 	 	 
	 	 	 /s/ Konstantin Saad
	 	 	 Konstantin Saad

 

 

  

2

  

 

Exhibit I

 

Scope of work and tasks of the Consultant for the Period 01.07.10 to 30.6.2011

 

1. Representation

 

	
Ø  

	
Promotion of the Company profile, through written articles and personal attendance at conferences and other public occasions.

 

	
Ø  

	
Leadership in assuring the adequacy of the image carried by the programs, products and services and the global Company image strategy.

 

	
Ø  

	Promotion of the Company, its products and solutions with high profile officials and industrial leaders, with a special focus on North Africa and Asia. Establishment of high level contacts in these regions in view of indirectly or directly developing the sales through these channels.

 

2. Organization

 

	
Ø  

	
Elaboration of a code of conduct for the company, its executive leaders and the Swiss Company's board of directors.

 

	
Ø  

	
Establishment of statutory rules, mission, mode of action and mode of operation of the Advisory Board.

 

3. Mergers, acquisitions and alliances

 

	
Ø  

	
Research of opportunities of M&A, business development and strategic alliances.

 

	
Ø  

	
Elaboration of related strategic plan for 2010-2011.

 

	
Ø  

	Set up of due diligence teams.

 

	
Ø  

	Leadership in due diligence process and negotiation phases.

 

3

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