Document:

EX-10.23

Exhibit 10.23

 

 

Execution Version

Dated This 12 day of January 2009

By and Among

Standard Bank Plc,

Zhang Ruilin,

Zhao Jiangwei,

Shang Zhiguo

AND

Far East Energy Limited

 

SHARES PURCHASE AGREEMENT

relating to the purchase of 197,049 Ordinary Shares

of

MIE HOLDINGS CORPORATION

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.
	 	DEFINITIONS AND INTERPRETATION	 	 	2	 
	2.
	 	PURCHASE AND SALE OF THE ORDINARY
SHARES; COMPLETION	 	 	9	 
	3.
	 	[INTENTIONALLY BLANK]	 	 	11	 
	4.
	 	[INTENTIONALLY BLANK]	 	 	11	 
	5.
	 	WARRANTIES AND UNDERTAKINGS	 	 	11	 
	5A.
	 	PUT OPTION	 	 	13	 
	6.
	 	[INTENTIONALLY BLANK]	 	 	16	 
	7.
	 	[INTENTIONALLY BLANK]	 	 	16	 
	8.
	 	SURVIVAL AND INDEMNITIES	 	 	16	 
	9.
	 	ANNOUNCEMENTS AND CONFIDENTIALITY	 	 	17	 
	10.
	 	RELEASE AND INDULGENCE	 	 	18	 
	11.
	 	NOTICES	 	 	18	 
	12.
	 	GOVERNING LAW	 	 	19	 
	13.
	 	ARBITRATION	 	 	19	 
	14.
	 	MISCELLANEOUS	 	 	20	 

SCHEDULES AND EXHIBITS

	 	 	 
	SCHEDULE 1

	 	PARTICULARS OF THE SHAREHOLDERS IMMEDIATELY PRIOR TO THE

COMPLETION AND IMMEDIATELY AFTER THE COMPLETION
	SCHEDULE 2

	 	[OMITTED]
	SCHEDULE 3

	 	COMPANY WARRANTIES
	 
	 	 
	EXHIBIT 1

	 	FORM OF OPTION AGREEMENT
	EXHIBIT 2

	 	FORM OF REPAYMENT ACKNOWLEDGEMENT
	EXHIBIT 3

	 	FORM OF SHARE EXCHANGE AGREEMENT
	EXHIBIT 4

	 	FORM OF STANDARD BANK AMENDMENT
	EXHIBIT 5

	 	FORM OF JILIN PROVINCE LIAOYUAN
PEOPLE’S PROCURATORATE REPORT

 

 

THIS
SHARES PURCHASE AGREEMENT (this
“Agreement”) is made on the [    ] day of
January 2009 by and among:

	(1)	 	STANDARD BANK PLC, a financial institution incorporated in England, and/or one or more of its
Affiliates (collectively, “Standard Bank”);
	 
	(2)	 	FAR EAST ENERGY LIMITED, a company incorporated in the Hong Kong Special Administrative Region
of the People’s Republic of China (“FEEL”);
	 
	(3)	 	ZHANG RUILIN, an individual whose passport number is
G18206054 (“Zhang”);
	 
	(4)	 	ZHAO JIANGWEI, an individual whose passport number is
G11875117 (“Zhao”); and
	 
	(5)	 	SHANG ZHIGUO, an individual whose passport number is
Gl8197033 (“Shang” and together
with Zhang and Zhao, the “FEEL Shareholders”).

(Standard Bank, FEEL and the FEEL Shareholders are hereinafter referred to collectively as the
“Parties” and individually as a “Party”).

WHEREAS, MIE has issued 50,000 ordinary shares, par value US$1.00 each (the “MIE Ordinary
Shares”), all of which are owned by FEEL;

WHEREAS, the Company has issued 1 ordinary share, par value US$1.00 each as at the date of this
Agreement (which will be changed to US$0.01 each prior to the Completion) (the “Ordinary
Shares”), which is owned by FEEL;

WHEREAS, prior to Completion, the Company will authorise the issuance of 10,000,000 Ordinary
Shares;

WHEREAS, prior to Completion FEEL will exchange 50,000 MIE Ordinary Shares for 10,000,000 Ordinary
Shares on the terms and subject to the conditions contained in this
Agreement;

WHEREAS, FEEL desires to sell to Standard Bank and Standard Bank desires to purchase from FEEL
197,049 Ordinary Shares on the terms and subject to the conditions contained in this Agreement; and

NOW THEREFORE, in consideration of the premises and of the representations and warranties
hereinafter contained, and upon the terms and subject to the conditions stated herein, the Parties
agree as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions. In this Agreement the following words or expressions have the
following meanings:

	 	 	 
	“Action”

	 	means any action, order, writ, injunction, judgment or decree outstanding or any claim, suit, litigation, proceeding

1

 

	 	 	 
	 

	 	at law or in equity, labour
dispute, arbitral action, governmental audit or
governmental investigation.
	 
	 	 
	“Affiliate”

	 	means, with respect to any specified Person, any
other Person who or which, directly or indirectly,
controls, is controlled by, or is under common
control with, such specified Person, including,
without limitation, any general partner, officer,
director, member, manager or employee of such
Person and any investment fund now or hereafter
existing that is controlled by or under common
control with one or more general partners or
managing members of, or shares the same management
company with, such Person; provided, that (i) with
respect to Standard Bank, Affiliate shall include
any related entity or division within Standard Bank
and any funds managed, controlled or advised by
Standard Bank and/or its Affiliates, (ii) with
respect to FEEL, Affiliate shall include Zhang and
Zhao and each of their respective Affiliates; (iii)
with respect to Zhang, Affiliate shall include FEEL
and its Affiliates, Zhao and his Affiliates and
Zhang’s direct family members; and (iv) with
respect to Zhao, Affiliates shall include FEEL and
its Affiliates, Zhang and his Affiliates and Zhao’s
direct family members.
	 
	 	 
	“Agreement”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“Business Day”

	 	means any day that is not a Saturday, a Sunday or a
day on which banks are required or permitted to be
closed in the Hong Kong SAR or the PRC.
	 
	 	 
	“Company”

	 	means MIE Holdings Corporation, an exempted company
incorporated with limited liability in the Cayman
Islands.
	 
	 	 
	“Company Board”

	 	means the board of directors for the time being of
the Company or the Directors present or deemed
present at a duly convened meeting of the Directors
at which a quorum is present.
	 
	 	 
	“Company Warranties”

	 	means the warranties set forth in Schedule 3.
	 
	 	 
	“Completion”

	 	has the meaning given such term in Clause 2.2(a).
	 
	 	 
	“Completion Date”

	 	has the meaning given such term in Clause 2.2(a).
	 
	 	 
	“Compliance with
Financing Agreements”

	 	has the meaning given such term in
Clause 5A.1(c).
	 
	 	 
	“Consent”

	 	means any authorisation, waiver, release,
exemption, consent or other approval of, from or
imposed by, any Person (other than a Governmental
Authority).

2

 

	 	 	 
	“Election Notice”

	 	has the meaning given such term in
Clause 5A.1(b).
	 
	 	 
	“Encumbrance”

	 	means any deed to secure debt, assignment, security
interest, security right, pledge, lien, charge,
option, encumbrance and claim or right of any kind of third
Persons, whether voluntarily incurred or arising by
operation of law, including any agreement to give any of the
foregoing in the future, and in relation to shares in the issued
shares capital of a company, any right to appoint a proxy,
exercisable by any party other than the holder of such
shares.
	 
	 	 
	“FEEL Board”

	 	means the board of directors for the time being of FEEL or
the FEEL Directors present or deemed present at a duly convened
meeting of the FEEL Directors at which a quorum is present.
	 
	 	 
	“FEEL Shareholders”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“General Warranty Expiration Date”

	 	has the meaning given such term in Clause 8.1.
	 
	 	 
	“Governmental Authority”

	 	means any national or local government (whether domestic
or foreign), any political subdivision thereof or any other
governmental, quasi-governmental, juridical, public,
regulatory, legislative or statutory instrumentality,
authority, body, agency, department, bureau or entity
(including any zoning authority or any comparable
authority) or any arbitrator with authority to bind a Person at
law.
	 
	 	 
	“Governmental Rule”

	 	means any law, rule, regulation, ordinance, order, code,
Permit, interpretation, judgment, decree, directive,
guideline, policy or similar form of decision of any
Governmental Authority having the effect and force of law.
	 
	 	 
	“HKIAC”

	 	has the meaning given such term in Clause 13.2(a).
	 
	 	 
	“IFRS”

	 	means the International Financial Reporting Standards.
	 
	 	 
	“Indemnity Cap”

	 	means an amount equal to 45% of the
Purchase Price.
	 
	 	 
	“Installment Purchase”

	 	has the meaning given such term in
Clause 5A.1(b).
	 
	 	 
	“IPO Application Date”

	 	means the date upon which an application is first
submitted to a Recognised Exchange to list share of the Option
Vehicle on such Recognised Exchange in connection with a proposed
Qualified IPO; provided that the Buyer is given written notice of
the intention to submit such application

3

 

	 	 	 
	 

	 	on that date at least 60 days prior to such date; and further provided that such application to the Recognised Exchange
is in fact submitted on that date.
	 
	 	 
	“Joint Management Committee”

	 	has the meaning given in the
Production Sharing Contracts.
	 
	 	 
	“Losses”

	 	has the meaning given such term in Clause 8.2.
	 
	 	 
	“Material Adverse Effect”

	 	means a material adverse effect on the business, results of operation or financial condition of the Company and its
Subsidiaries taken as a whole; provided, however, that Material Adverse Effect shall not be deemed to include the effects of
(a) any changes or developments generally affecting the industry in which the Company or any of its Subsidiaries operates,
which changes or developments do not disproportionately affect the Company relative to other participants in such industry
in any material respect, (b) any changes or developments in connection with general economic, political or regulatory
conditions, which changes do not disproportionately affect the Company or any of its Subsidiaries and (c) any changes or
proposed changes in IFRS.
	 
	 	 
	“MIE”

	 	means MI Energy Corporation, an exempted company incorporated with limited liability in the Cayman Islands.
	 
	 	 
	“MIE Board”

	 	means the board of directors for the time being of MIE or the directors of MIE present or deemed present at a duly convened
meeting of the board of directors of MIE at which a quorum is present.
	 
	 	 
	“MIE Ordinary Shares”

	 	has the meaning given such term in the first Recital.
	 
	 	 
	“Notices”

	 	has the meaning given such term in Clause 11.
	 
	 	 
	“Option Agreement”

	 	means the option agreement to be entered into by and between FEEL and Standard Bank in the form attached hereto as Exhibit 1.
	 
	 	 
	“Ordinary Shares”

	 	has the meaning given such term in the second Recital.
	 
	 	 
	“Parties” or “Party”

	 	has the meaning given such terms in the Preamble.
	 
	 	 
	“Per Share Purchase Price”

	 	means US$26.00 per Ordinary Share.
	 
	 	 
	“Per Preferred Share Purchase Price”

	 	means the per share purchase price of a Preferred Share in a Preferred Shares Transaction.
	 
	 	 
	“Person”

	 	means any natural person, individual, partnership, joint

4

 

	 	 	 
	 

	 	venture, company, corporation, trust, estate, juridical entity, firm, association, statutory
body, unincorporated organization, or Governmental Authority or any other entity whether acting in an
individual, fiduciary or other capacity.
	 
	 	 
	“PRC”

	 	means the Peoples’ Republic of China.
	 
	 	 
	“Production Sharing Contracts”

	 	means collectively, the (i) Petroleum Contract for Development and Production of the Daan Oil
Field of Jilin Province, PRC between GOC and China National Petroleum Corporation on December 16,
1997, as amended on October 25, 2000 and December 20, 2001, as amended, modified and supplemented; (ii) Petroleum
Contract for Development and Production of the Miao3 Oil Field of Jilin Province, PRC between GOC and China
National Petroleum Corporation on December 16, 1997, as amended on October 25, 2000 and December 20, 2001, as
amended, modified and supplemented; (iii) Petroleum Contract for Development and Production of the Moliqing Oil
Field of Jilin Province, PRC between GOC and China National Petroleum Corporation on September 25, 1998
and amended on October 25, 2000 and December 20, 2001, as amended, modified and supplemented, and “Production
Sharing Contract” means any one of them.
	 
	 	 
	“Preferred Shares”

	 	has the meaning given such term in Clause 5.5.
	 
	 	 
	“Preferred Shares Transaction”

	 	has the meaning given such term in Clause 5.5
	 
	 	 
	“Purchase Price”

	 	means US$5,123,274, being the aggregate purchase price for the Purchased Shares.
	 
	 	 
	“Purchased Shares”

	 	means 197,049 Ordinary Shares purchased by Standard Bank at the Completion as set forth on Schedule 1.
	 
	 	 
	“Put Exercise Notice”

	 	has the meaning given such term in
Clause 5A.1(a).
	 
	 	 
	“Put Option Holder”

	 	has the meaning given such term in
Clause 5A.1(a).

5

 

	 	 	 
	“Put Option Period”

	 	means the earliest of:
	 
	 	 
	 

	 	(1) in the event the Company does not complete a Qualified IPO within six (6) months after
the IPO Application Date or a Preferred Shares Transaction is not consummated, the period
commencing on the day preceding the date falling eighteen (18) months after the Completion
and ending on the day preceding the date falling thirty-six (36) months after the
Completion; and
	 
	 	 
	 

	 	(2) in the event the Company conducts a Qualified IPO within six (6) months after the IPO
Application Date, the period commencing on the Completion Date and ending on the date
falling seven (7) days prior to the IPO Application
Date.
	 
	 	 
	“Put Price”

	 	means a price per Put Share equal to the Put Share Original Issuance Price.
	 
	 	 
	“Put Purchase Date”

	 	has the meaning given such term in
Clause 5A.1(b)(ii).
	 
	 	 
	“Put Right”

	 	has the meaning given such term in
Clause 5A.1(a).
	 
	 	 
	“Put Share Original Issuance
Price”

	 	means US$26.00.
	 
	 	 
	“Put Shares”

	 	has the meaning given such term in
Clause 5A.1(a).
	 
	 	 
	“Qualified IPO”

	 	means a firm commitment public offering by the Company of its Shares on a Recognised Stock
Exchange pursuant to a prospectus or offering circular under applicable securities laws
resulting in (i) a market capitalization of at least US$400,000,000 (or its equivalent in
the relevant currency) and (ii) the shares of the Company becoming freely tradable.
	 
	 	 
	“Recognised Stock Exchange”

	 	means NASDAQ, the New York Stock Exchange or the main board of any of the Stock Exchange of
Hong Kong Limited, the Singapore Stock Exchange, or the London Stock Exchange or any other
stock exchange of equal standing reasonably agreed by Standard Bank.
	 
	 	 
	“Register of Members”

	 	means the Register of Members of the Company maintained in the Cayman Islands.
	 
	 	 
	“Repayment
Acknowledgement”

	 	means the repayment acknowledgement issued by Standard Bank to FEEL acknowledging repayment
of the Standard Bank US$13 Million Facility in the form attached as
Exhibit 2.
	 
	 	 
	“Repurchase”

	 	has the meaning given such term in the Share Exchange Agreement.

6

 

	 	 	 
	“Share Exchange”

	 	has the meaning given such term in the Share Exchange Agreement.
	 
	 	 
	“Share Exchange
Agreement”

	 	means the share exchange agreement to be entered into by and between FEEL and the Company to
effectuate the Share Exchange, Repurchase and Subscription in the form attached hereto as Exhibit
3.
	 
	 	 
	“Shares”

	 	means the Ordinary Shares and any other shares of the Company, whether fully or partly paid.
	 
	 	 
	“Single Purchase”

	 	has the meaning given such term in
Clause 5A.1(b).
	 
	 	 
	“Standard Bank US$13 Million
Facility”

	 	means the US$13 Million Term Facility Agreement dated 6 June 2008 by and between FEEL, Standard
Bank, as lender, and other parties.
	 
	 	 
	“Standard Bank Facility”

	 	means the Borrowing Base Facility Agreement, dated 29 October 2007 by and between MIE, Standard
Bank Asia Limited, as Arranger, Agent, Security Trustee and Technical Bank, Standard Bank
Plc as the Offshore Account Bank and the Original Lenders (as such term is defined therein), as
amended from time to time.
	 
	 	 
	“Standard Bank
Amendment”

	 	means the Amendment Agreement by and among the parties to the Standard Bank Facility amending
certain provisions thereto and approving the terms of this Transaction, in the form
attached hereto in Exhibit 4.
	 
	 	 
	“Subscription”

	 	has the meaning set forth in the Share Exchange Agreement.
	 
	 	 
	“Subsidiary”

	 	means, with respect to any Person:
	 
	 	 
	 

	 	(a)  any company or corporation more than 50% of whose shares of any class or classes having by
the terms thereof ordinary voting power to elect a majority of the directors of such company
or corporation (irrespectively of whether or not at the time shares of any class or classes of
such company or corporation shall have or might have voting power by reason of the happening of any
contingency) is at the time owned by such Person directly or indirectly through one or more
Subsidiaries of such Person; and

	 
	 	 
	 

	 	(b)  any partnership, association, joint venture or other entity in which such Person directly
or indirectly through one or more Subsidiaries of such Person has more than a 50% equity interest.

7

 

	 	 	 
	“Transaction Agreements”.

	 	means this Agreement, and the Share
Exchange Agreement.
	 
	 	 
	“UNCITRAL Rules”

	 	has the meaning given such term in Clause 13.2(a).
	 
	 	 
	“US”

	 	means the United States of America.
	 
	 	 
	“US$”

	 	means the lawful currency of the United States of America.
	 
	 	 
	“Warrantor”

	 	means FEEL.
	 
	 	 
	“Warranty Claims”

	 	has the meaning given such term in Clause 8.2.

	1.2	 	Other Defined Terms. Other terms may be defined elsewhere in the text of this
Agreement and, unless otherwise indicated, shall have such meaning throughout this Agreement.
	 
	1.3	 	Principles of Construction.

	 	(a)	 	Any document expressed to be in “agreed form” means a document in or substantially in the form
approved by, and signed for identification purposes by or on behalf
of, all the Parties.
	 
	 	(b)	 	The words “hereof,” “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement.
	 
	 	(c)	 	The words “include,” “including” and “among other things” shall be deemed to be followed by
“without limitation” or “but not limited to” whether or not they are followed by such phrases or
words of similar import.
	 
	 	(d)	 	Unless the context clearly requires otherwise,
“or” is not exclusive.
	 
	 	(e)	 	All references herein to a Party’s “knowledge” shall mean, with respect to the matter in
question, if such Party (or any of the executive officers of such Party) has, or would reasonably
be expected to have, after conducting a reasonable investigation, actual knowledge of the matter.
	 
	 	(f)	 	Any reference to a statutory provision shall include such provision and any regulations made in
pursuance thereof as from time to time modified or re-enacted whether before or after the date of
this Agreement so far as such modification or re-enactment applies or is capable of applying to
any transactions entered into prior to the Completion and (so far as liability thereunder may exist
or can arise) shall include also any past statutory provisions or regulations (as from time to time
modified or re-enacted) which such provisions or regulations have directly or indirectly replaced.
	 
	 	(g)	 	References to the Preamble, Recitals, Clauses, Schedules and Exhibits are to the preamble,
recitals and clauses of and schedules and exhibits to this

8

 

	 	 	 	Agreement.
	 
	 	(h)	 	The headings are for convenience only and shall not affect the interpretation hereof.
	 
	 	(i)	 	Unless the context otherwise requires or permits, references to the singular number shall
include references to the plural number and vice versa and references to natural persons shall
include bodies corporate.
	 
	 	(j)	 	The Transaction Agreements are the result of negotiations between, and have been reviewed by,
the respective parties to each such agreement. Accordingly, each such agreement shall be deemed to
be the product of all parties thereto, and there shall be no presumption that an ambiguity should
be construed in favor of or against any of Standard Bank, the FEEL Shareholders, or FEEL, as the
case may be, thereto solely as a result of such party’s actual or alleged role in the drafting of
any such agreement.
	 
	 	(k)	 	This Agreement may be translated into one or more languages other than English. In the event of
any inconsistency or contradiction between the texts, this English text shall prevail.

	2.	 	PURCHASE AND SALE OF THE PURCHASED SHARES; COMPLETION
	 
	2.1	 	Sale of Ordinary Shares. Upon the terms and subject to the conditions of this
Agreement, at the Completion, FEEL shall sell to Standard Bank, and Standard Bank shall purchase
from FEEL, the Purchased Shares for a purchase price per Purchased Share equal to the Per Share
Purchase Price.
	 
	2.2	 	Completion.

	 	(a)	 	The purchase and sale of the Purchased Shares and the other transactions contemplated by this
Agreement shall be consummated (the “Completion”) at the offices of White & Case LLP, China
Central Place, Tower 1, 19th Floor, 81 Jian Guo Road, Beijing on the date of this Agreement (such
date, the “Completion Date”).
	 
	 	(b)	 	At the Completion, FEEL shall deliver to Standard Bank certified copies of the duly executed
transfer instrument in respect of the Purchased Shares being purchased by Standard Bank and the
current share certificate relating thereto (for cancellation), and the new share certificate
relating thereto in the name of Standard Bank, and a certified copy of the Register of Members
reflecting the sale and transfer by FEEL of the number of Purchased Shares being purchased by
Standard Bank, against delivery of the Repayment Acknowledgement.

	2.3	 	Deliveries by FEEL on or before the Completion Date. On the Completion Date, FEEL
shall deliver to Standard Bank all of the following in agreed form:

	 	(a)	 	certified copies of the shareholder resolutions of (i) FEEL duly passed by each of the FEEL
Shareholders, approving each of the matters in the resolutions of the FEEL Board referred to in (b)
of this Clause 2.3, and (ii) the Company

9

 

	 	 	 	duly passed by FEEL, approving each of the matters in the resolutions of the Company Board referred
to in (c) of this Clause 2.3;
	 
	 	(b)	 	certified copies of the resolutions of the FEEL Board approving the terms of the Transaction
Agreements and the sale and transfer of the Purchased Shares to Standard Bank;
	 
	 	(c)	 	certified copies of the resolutions of the Company Board:

	 	(i)	 	approving the terms of the Transaction Agreements to which the Company is a party;
	 
	 	(ii)	 	authorising the issuance of the relevant share certificates in respect of the Purchased
Shares in favour of Standard Bank; and
	 
	 	(iii)	 	approving the entry of Standard Bank’s name in the Register of Members as holder of the
Purchased Shares;

	 	(d)	 	copies of Consents as may be required to enable Standard Bank to be registered as holder of the
Purchased Shares;

	 	(e)	 	the Standard Bank Amendment, duly executed by MIE; and
	 
	 	(f)	 	the Option Agreement, duly executed by FEEL.

Prior to the Completion, FEEL shall have delivered to the Company the duly executed transfer
instruments in respect of the Purchased Shares being purchased by Standard Bank and the current
share certificate(s) representing that number of the Purchased Shares together with the resolutions
of the Company Board authorising and directing:

	 	(a)	 	the issuance of the relevant new share certificate in respect of the Purchased Shares in favour
of Standard Bank; and
	 
	 	(b)	 	the entry of Standard Bank’s name in the Register of Members as holder of the Purchased Shares.

	2.4	 	[Intentionally Blank]
	 
	2.5	 	Deliveries by Standard Bank on the Completion Date. On the Completion Date,
Standard Bank shall deliver to FEEL:

	 	(a)	 	the originally executed Repayment Acknowledgement;
	 
	 	(b)	 	the Standard Bank Amendment, duly executed by Standard Bank Asia Limited as Agent; and
	 
	 	(c)	 	the Option Agreement, duly executed by Standard Bank.

	2.6	 	Right to Rescind. If any of the documents required to be delivered on the Completion
Date, insofar as it relates to an obligation of any Party, is not forthcoming for any

10

 

	 	 	reason or if in any other material respect the foregoing provisions of this Clause 2 are not fully
complied with, FEEL (in the case of non-compliance under Clause 2.5) or Standard Bank (in any other
case) shall be entitled (in addition to and without prejudice to all other rights or remedies
available to it including the right to claim damages):

	 	(a)	 	to elect to rescind this Agreement;
	 
	 	(b)	 	to effect the Completion so far as practicable having regard to the defaults which have
occurred; or
	 
	 	(c)	 	to fix a new day for the Completion.

	2.7	 	[Intentionally Blank]
	 
	3.	 	INTENTIONALLY BLANK
	 
	4.	 	INTENTIONALLY BLANK
	 
	5.	 	WARRANTIES AND UNDERTAKINGS
	 
	5.1	 	Warranties of the Warrantor. The Warrantor hereby acknowledges that it has made the
Company Warranties as set forth in Schedule 3 to Standard Bank and that the statements in Schedule
3 are true and correct as of the date hereof and as of the Completion Date, and Standard Bank has
relied upon such Company Warranties to enter into this Agreement. Each of the Company Warranties
shall be separate and independent and save as expressly otherwise provided shall not be limited by
reference to any provision in this Agreement.
	 
	5.2	 	[Intentionally Blank].
	 
	5.3	 	Warranties by Standard Bank. Standard Bank hereby warrants to FEEL that:

	 	(a)	 	it is a company, corporation, limited partnership or financial institution, as the case may be,
duly organized and validly existing under the laws of the jurisdiction in which it is organized;
	 
	 	(b)	 	it has the full corporate power and authority and full legal capacity to execute, deliver and
perform its obligations under the Transaction Agreements to which it is a party and each of such
Transaction Agreements will be or have been duly executed and delivered and constitute or will
constitute a valid and binding obligation of Standard Bank enforceable in accordance with its
terms, except that such enforcement may be subject to or limited by bankruptcy, insolvency,
moratorium or other laws affecting creditors’ rights generally and subject to the application of
general principles of equity;
	 
	 	(c)	 	the execution, delivery and performance of the Transaction Agreements to which it is a party,
and the purchase and acceptance of the Purchased Shares by Standard Bank will not result in a
breach or violation of any of the terms and provisions of, or constitute a default under (i) any
Governmental Rule or

11

 

	 	 	 	order of any Governmental Authority or any court, domestic or foreign, having jurisdiction over
Standard Bank or any Subsidiary of Standard Bank or any of their respective properties, (ii) any
material agreement or instrument to which Standard Bank or any such Subsidiary is a party or by
which Standard Bank or any such Subsidiary is bound or to which any of the properties of Standard
Bank or any such Subsidiary is subject, or (iii) the organizational documents of Standard Bank or
any such Subsidiary other than where such breach, violation or default has not and is not
reasonably likely to have an adverse affect on Standard Bank’s ability to perform its obligations
under any of the Transaction Agreements;
	 
	 	(d)	 	it is not and will not be required to give any notice or to make any filing with or obtain any
Permit, consent, waiver or other authorisation from any governmental or regulatory authority or
other Person in connection with the execution, delivery and performance of the Transaction
Agreements;
	 
	 	(e)	 	there is no legal, administrative, arbitration or other action or proceeding or governmental
investigation pending, or, to the knowledge of Standard Bank, threatened, against Standard Bank
that challenges the validity or performance of this Agreement or the Transaction Agreements to
which it is a party or which, if successful, could hinder or prevent Standard Bank from performing
its obligations hereunder or thereunder; and
	 
	 	(f)	 	it has no contract, arrangement or understanding with any broker, finder or similar agent with
respect to the transactions contemplated by this Agreement or the other Transaction Agreements.

	5.4	 	Warranties by FEEL. FEEL warrants to Standard Bank that:

	 	(a)	 	it is a company duly organized and validly existing under the laws of the jurisdiction in which
it is organized;
	 
	 	(b)	 	immediately prior to Completion, it will be the lawful owner, beneficially and of record, of
and will have valid and marketable title to 10,000,000 Ordinary Shares free and clear of any
Encumbrances;
	 
	 	(c)	 	it is not a party to any contract creating rights in respect of the 10,000,000 Ordinary Shares
in any third Person or relating to the voting of such Shares or which would otherwise restrict its
ownership of such Shares;
	 
	 	(d)	 	it has the full power and authority and full legal capacity to execute, deliver and perform
its obligations under the Transaction Agreements to which it is a party and each of such
Transaction Agreements will be or have been duly executed and delivered and constitute or will
constitute a valid and binding obligation of FEEL enforceable in accordance with its terms, except
that such enforcement may be subject to or limited by bankruptcy, insolvency, moratorium or
other laws affecting creditors’ rights generally and subject to the application of general
principles of equity; and

12

 

	 	(e)	 	the execution, delivery and performance of the Transaction Agreements to which it is a party,
and the sale and transfer of the Purchased Shares to Standard Bank will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under (i) any Governmental
Rule or order of any Governmental Authority or any court, domestic or foreign, having jurisdiction
over FEEL or any Subsidiary of FEEL or any of their respective properties, (ii) any material
agreement or instrument to which FEEL or any such Subsidiary is a party or by which FEEL or any
such Subsidiary is bound or to which any of the properties of FEEL or any such Subsidiary is
subject, or (iii) the organizational documents of FEEL or any such Subsidiary other than where such
breach, violation or default has not had, and is not reasonably likely to have, an adverse affect
on FEEL’s ability to perform its obligations under any of the
Transaction Agreements.

	5.5	 	Undertakings with respect to conversion of shareholding. During the period commencing
on the date of the completion of the first transaction in which shares in the Company are issued to
any person on terms which are not identical to the Ordinary Shares (such first series of shares
being “Preferred Shares”), or any Ordinary Shares are converted to Preferred Shares and
issued to any person (“Preferred Shares Investor”) for an aggregate amount of not less than
$20,000,000 (such issuance or conversion, a “Preferred Shares Transaction”) and ending two (2)
months after the date of completion of the Preferred Shares Transaction, Standard Bank shall have
the right to require FEEL to promptly take all steps necessary to ensure that:

	 	(a)	 	all or part of the Ordinary Shares then held by Standard Bank are converted into Preferred
Shares without charge or premium at the following conversion ratio:

	 	 	 
	Number of Preferred Shares =

	 	Purchase Price
	 

	 	Per Preferred Share Purchase Price

	 	 	 	with the same rights attributable thereto as all other such series of Preferred Shares in
issue at the time of such conversion; and
	 
	 	(b)	 	if the Ordinary Shares held by Standard Bank are converted into Preferred Shares pursuant to
sub-clause (a), Standard Bank is included as a party to any shareholder agreement entered into
between FEEL and such Preferred Shares Investor relating to such Preferred Shares Investor’s
shareholding in the Company, with rights granted to Standard Bank appropriate to Standard Bank’s
shareholding percentage in the Company upon such conversion.

	5A. PUT OPTION
	 
	5A.1 Put Option.

	 	(a)	 	At any time during the Put Option Period, Standard Bank and its successors and assigns
(“Put Option Holder”) shall have the right, exercisable only once and exercisable only if
the Put Option Holder has not converted its Ordinary Shares into Preferred Shares pursuant to
Clause 5.5, to require MIE to

13

 

	 	 	 	purchase some or all of the Ordinary Shares (the “Put Shares”) then owned by such Put
Option Holder (“Put Right”) by delivering written notice thereof to MIE (with a copy to the
Company, FEEL and to the other shareholders of the Company) (the “Put Exercise Notice”)
specifying the number of Put Shares to be purchased.
	 
	 	(b)	 	Upon delivery by a Put Option Holder of the Put Exercise Notice, MIE shall elect whether it
wishes to purchase the Put Shares (i) in one (1) installment (a “Single Purchase”) or (ii)
in five (5) evenly spaced installments (with the installments being as nearly as practicable of
equal numbers of Put Shares and the final installment being on a date no later than 18 months after
the delivery of the Put Exercise Notice) (an “Installment Purchase”). The first installment
in an Installment Purchase shall be made no later than 90 days after the date of delivery of the
Put Exercise Notice. MIE shall notify (the “Election Notice”) the Put Option Holder no
later than ten (10) days after the delivery of the Put Exercise Notice:

	 	(i)	 	of whether it has elected for a Single Purchase or an Installment Purchase;
	 
	 	(ii)	 	of the dates of each installment (each a “Put Purchase Date”) and the number of Put
Shares to be purchased on the date of each such installment;
	 
	 	(iii)	 	of the Put Price payable on each Put Purchase Date, together with details of the method of
calculation of the Put Price;
	 
	 	(iv)	 	of the time and place for the closing of the sale and purchase of the Put Shares to be sold on
each Put Purchase Date.

	 	 	 	If an Election Notice is not given in accordance with the foregoing provisions, MIE shall be deemed
to have elected to purchase all the Put Shares in one installment on such date (which shall be
treated as the Put Purchase Date but which shall be not earlier than 20 Business Days after the
date of delivery of the Put Exercise Notice) and at such time and place as the Put Option Holder
shall notify MIE (with a copy to the Company and FEEL).
	 
	 	(c)	 	MIE shall have the obligation to purchase Put Shares on a Put Purchase Date in accordance with
the above Clause 5A.1(b), but only up to the amount for which MIE has from time to time lawfully
available funds to do so and to the extent that it will be in compliance, after giving effect to
the payment for such purchase, with all of the terms of all of MIE’s existing financing agreements,
including any covenants that would need to be satisfied during the 6-month period following such
purchase of Put Shares, but only to the extent MIE has outstanding obligations under such financing
agreements on the relevant Put Purchase Date (“Compliance with Financing Agreements”),
provided, that if MIE does not fulfill its obligations to purchase Put Shares on the relevant Put
Purchase Date as a result of the application of the restrictions set forth in this paragraph (c),
MIE shall remain subject to the obligation to purchase the balance of the Put Shares as soon as it
is able so to purchase in a manner that

14

 

	 	 	 	complies with such restrictions.
	 
	 	(d)	 	The Company and FEEL shall be jointly and severally liable with MIE for the purchase of the Put
Shares in the manner as set forth below; provided however, that Standard Bank shall not take any
action under this paragraph (d) that would be reasonably likely to cause either the Company or FEEL
to become insolvent (whether technically or otherwise) or the subject of any liquidation,
bankruptcy or other similar proceedings, or cause a change of control of any of MIE, the Company or
FEEL. If and to the extent that MIE is not required to purchase the relevant Put Shares on a Put
Purchase Date as a result of the provisions of paragraph (c) above, then:

	 	(i)	 	the Company shall purchase, to the extent it is able under the laws of the Cayman Islands, and,
in the event and to the extent that the Company can not or does not so purchase, FEEL shall
purchase, on such Put Purchase Date at the Put Price the Put Shares which MIE would have been
obliged to purchase on that date but for the operation of paragraph (c) above; and
	 
	 	(ii)	 	to the extent FEEL fails to comply with its obligations under sub-paragraph (i) above (and
without prejudice to any rights that Standard Bank may have against FEEL in respect of such
failure), MIE shall purchase the relevant Put Shares forthwith upon having the lawfully available
funds to do so and being in Compliance with Financing Agreements.

	 	(e)	 	A Put Share shall only be purchased if and to the extent that the relevant Put Price for such
Put Share has been paid in full, and until payment of the relevant Put Price has been made in full,
the Put Option Holder shall maintain all its right, title and interest in such Put Share.
	 
	 	(f)	 	[Intentionally Blank]
	 
	 	(g)	 	On or before the relevant Put Purchase Date, the Put Option Holder shall surrender the
certificate or certificates representing the Put Shares to be purchased on the Put Purchase Date
(or, if the Put Option Holder alleges that such certificate has been lost, stolen or destroyed, a
lost certificate affidavit and agreement reasonably acceptable to MIE or the Company to indemnify
MIE or the Company against any claim that may be made against MIE or the Company on account of the
alleged loss, theft or destruction of such certificate) to MIE or the Company, in the manner and at
the place designated in the Election Notice against payment in full of the relevant Put Price in
immediately available funds to the order of the Person whose name appears on such certificate or
certificates as the owner thereof (which payment shall be made by MIE, the Company or FEEL (as the
case may be)). In the event that less than all of the Shares represented by a certificate are
purchased, a new certificate representing the balance of the unsold Shares shall promptly be issued
to the Put Option Holder by the Company and a certificate for the Put Shares purchased shall be
issued by the Company to MIE or FEEL (as the case may be).

15

 

	 	(h)	 	Upon expiration of the Put Option Period, each Put Option Holder shall forfeit its right
to exercise its Put Right.

	5A.2 	 	Cash Flows. Each of MIE, the Company and FEEL shall use its commercially reasonable
efforts to maximize cash flow available to pay, if the Put Right is exercised, the Put Price to be
paid to the Put Option Holder, provided, however, that all such efforts to maximize cash flow (i)
shall be subject to the terms of any business plans approved by the Joint Management Committee and
(ii) are consistent with, and in no way jeopardize or adversely affect, the Production Sharing
Contracts. Standard Bank may propose a refinancing plan for approval by the Board to enable, if the
Put Right is exercised, MIE, the Company or FEEL to pay the Put Price earlier than the payment
dates contemplated by the Installment Purchase.
	 
	6.	 	[INTENTIONALLY BLANK]
	 
	7.	 	CONDITIONS
	 
	7.1.	 	[Intentionally Blank]
	 
	7.2.	 	Conditions Subsequent. Within 60 days following Completion, FEEL shall:

	 	(a)	 	confirm to Standard Bank in writing that it has received the original of the report from the
Jilin Province Liaoyuan People’s Procuratorate, in form and substance of the Jilin Province
Liaoyuan People’s Procuratorate report attached as Exhibit 5; and
	 
	 	(b)	 	provide Standard Bank with copy (certified as a true copy of the original by a director or by
its solicitors) of such report.

	8.	 	SURVIVAL AND INDEMNITIES
	 
	8.1.	 	Survival. The warranties of the Parties contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and the Completion until the
date falling on the earlier of (a) the expiration date of the lock-up period applicable to Standard
Bank following the Qualified IPO and (b) the date falling thirty-six (36) months from the
Completion Date (the “General Warranty Expiration Date”).
	 
	8.2.	 	FEEL Warranty Indemnities. Subject to and as from Completion, the Warrantor shall
indemnify and hold harmless Standard Bank from and against any damages, deficiencies, losses
(including loss of value of the Shares), costs, liabilities and expenses (“Losses”)
resulting directly or indirectly from or arising in connection with any claims for breach of any of
the Company Warranties (the “Warranty Claims”) brought prior to the General Warranty
Expiration Date or breach of obligations under the Transaction
Agreements.

16

 

	8.3.	 	Limitations. Notwithstanding Clauses 8.1 and 8.2, the Warrantor shall not be
liable for any Losses in respect of a Warranty Claim:

	 	(a)	 	unless notice of the claim is given in writing by Standard Bank to the Warrantor setting out so
far as reasonably practicable the details of the matter in respect of which the claim is made
before the relevant Warranty Expiration Date, and any such claim shall (if it has not been
previously satisfied, settled or withdrawn) be deemed to be withdrawn six (6) months after such
notice is given unless legal proceedings in respect thereof have been commenced;
	 
	 	(b)	 	to the extent that the aggregate amount of Losses in respect of any breach of the Company
Warranties for which the Warrantor would otherwise be liable exceeds the Indemnity Cap; and
	 
	 	(c)	 	unless and until the aggregate amount of Losses in respect of breach of the Company Warranties
for which the Warrantor would otherwise be liable exceeds US$1,000,000.

	9.	 	ANNOUNCEMENTS AND CONFIDENTIALITY
	 
	9.1.	 	Announcements. No announcement, press release or circular in connection with the
existence or the subject matter of the Transaction Agreements shall be made or issued by or on
behalf of any Party without prior consent of the other Parties (such consent not to be unreasonably
withheld or delayed). This shall not affect any announcement, press release or circular required by
law or any regulatory body or the rules of any relevant stock exchange but the Party with an
obligation to make an announcement or issue a press release or circular shall consult with the
other Parties insofar as is reasonably practicable before complying with such an obligation.
	 
	9.2.	 	Confidentiality. Subject to Clause 9.3, each Party shall treat as confidential and not
disclose or use any information received or obtained as a result of entering into the Transaction
Agreements (or any agreement entered into pursuant to the Transaction Agreements) which relates to
the provisions of the Transaction Agreements and any agreement entered into pursuant to the
Transaction Agreements or the negotiations relating to the Transaction Agreements (and such other
agreements); provided, however, that FEEL and the FEEL Shareholder may disclose such information to
its lenders under the Standard Bank Facility.
	 
	9.3.	 	Exceptions to Confidentiality. Clause 9.2 shall not prohibit disclosure or use of any
information if and to the extent that:

	 	(a)	 	the disclosure or use is required by law, any regulatory body or the rules and/or regulations
of any relevant stock exchange, including any disclosure or use in an announcement, press release
or circular required to be made or issued pursuant to Clause 9.1;
	 
	 	(b)	 	the disclosure or use is required for the purpose of any judicial or regulatory proceedings
arising out of the Transaction Agreements or any other agreement entered into under or pursuant to
the Transaction Agreements or the disclosure

17

 

	 	 	 	is reasonably required to be made to a taxation authority in connection with the taxation affairs
of the disclosing Party;
	 
	 	(c)	 	the disclosure is made to employees, directors, officers, agents, Affiliates, fund investors
and professional advisors, including financial advisors, consultants, accountants and
legal counsel, of a Party or bona fide prospective purchasers of the Shares on terms that such
employees, directors, officers, agents, Affiliates, fund investors, professional advisors and
bona fide purchasers undertake to comply with the provisions of Clause 9.2 in respect of such
information as if they were a party to the Transaction Agreements;
	 
	 	(d)	 	the information becomes publicly available (other than by breach of any of the Transaction
Agreements); or
	 
	 	(e)	 	the other Parties have given prior written approval to the disclosure or use.

	10.	 	RELEASE AND INDULGENCE
	 
	 	 	Any liability to any Party may in whole or in part be released, compounded or compromised or time
or indulgence given by any other Party in writing in their absolute discretion, as regards any of
the Parties under such liability without in any way prejudicing or affecting their rights against
any other Party or Parties under the same or a like liability whether joint and several or
otherwise.
	 
	11.	 	NOTICES
	 
	 	 	All notices, consents, and other communications under or
pursuant to this Agreement (“Notices”)
shall be in writing and in the English language and shall be delivered (A) by hand, (B) by
facsimile (with receipt confirmed); provided, however, that a copy is promptly
thereafter mailed by reputable private courier, return receipt requested, (C) by the addressee or
(D) by such other means as the Parties may agree from time to time; in each case to the appropriate
addresses and facsimile numbers set forth below (or to such other addresses or facsimile numbers as
a Party may designate as to itself by not less than five (5) Business Days notice to the other
Parties):

	 	 	 	 	 
	if to Standard Bank, to

	 	:
	 	Standard Bank Plc
	 

	 	 	 	Cannon Bridge House
	 

	 	 	 	25 Dowgate Hill
	 

	 	 	 	London EC 4R 2SB
	 

	 	 	 	Fax: +852 2822 7947
	 

	 	 	 	Attention: John Wixley c/o Standard Bank Asia Limited
	 
	 	 	 	 
	if to Zhang, to

	 	:
	 	Zhang Ruilin
	 

	 	 	 	Suite 406, Block C, Grand Place
	 

	 	 	 	5 Hui Zhong Road
	 

	 	 	 	Chaoyang District, Beijing 10010
	 

	 	 	 	PRC
	 

	 	 	 	Facsimile: (8610) 5123 8866

18

 

	 	 	 	 	 
	if to Zhao, to

	 	:
	 	Zhao Jiangwei
	 

	 	 	 	Suite 406, Block C, Grand
Place
	 

	 	 	 	5 Hui Zhong Road
	 

	 	 	 	Chaoyang District, Beijing
10010
	 

	 	 	 	PRC
	 

	 	 	 	Facsimile: (8610) 5123 8866
	 
	 	 	 	 
	if to Shang, to

	 	:
	 	Shang Zhiguo
	 

	 	 	 	Suite 406, Block C, Grand
Place
	 

	 	 	 	5 Hui Zhong Road
	 

	 	 	 	Chaoyang District, Beijing
10010
	 

	 	 	 	PRC
	 

	 	 	 	Facsimile: (8610) 5123 8866
	 
	 	 	 	 
	if to FEEL, to

	 	:
	 	Suite 406, Block C, Grand
Place
	 

	 	 	 	5 Hui Zhong Road
	 

	 	 	 	Chaoyang District, Beijing
10010
	 

	 	 	 	PRC
	 

	 	 	 	Attention: Mr. Zhang Ruilin
	 

	 	 	 	Facsimile: (8610) 5123 8866

	12.	 	GOVERNING LAW
	 
	 	 	This Agreement shall be governed by and construed in accordance with English law.
	 
	13.	 	ARBITRATION
	 
	13.1.	 	Amicable Settlement. Any and all disputes, controversies and conflicts between the
Parties arising out of or relating to or in connection with this Agreement and the performance or
non-performance of the obligations set forth herein shall, so far as is possible, be settled
amicably between the Parties within thirty (30) days after written notice of such dispute,
controversy or conflict has been given by one Party to the other Parties.
	 
	13.2.	 	Arbitration Procedure.

	 	(a)	 	Failing an amicable settlement thereof within the thirty (30)-day period specified in
Clause 13.1, any and all disputes, controversies and conflicts arising out of or in connection with
this Agreement or its performance (including the validity of this Agreement) shall be settled by
three (3) arbitrators under the rules of the UNCITRAL Arbitration Rules (the
“UNCITRAL Rules”) in accordance with the Hong Kong International Arbitration
Centre (“HKIAC”) Procedures for the Administration of International Arbitration
in force at the date of this Agreement. The place of arbitration shall be Hong Kong and the
language used in the arbitral proceedings shall be English. The HKIAC shall act as the
administering institute.
	 
	 	(b)	 	The arbitrators shall be appointed by mutual consent of the Parties involved in

19

 

	 	 	 	the arbitration in accordance with the procedures set out in the UNCITRAL Rules regarding the
appointment of arbitrators, failing which the appointing authority shall be HKIAC.
	 
	 	(c)	 	The arbitral proceeding shall accord to each of the Parties the right to provide witnesses,
including expert witnesses, the right of cross-examination of witnesses and the right to make both
written and oral submissions.
	 
	 	(d)	 	The arbitral award made and granted by the arbitrator shall be final, binding and incontestable
and may be used as a basis for judgement thereon. All costs of arbitration (including, without
limitation, those incurred in the appointment of the arbitrator) shall be apportioned in the
arbitral award.

	13.3.	 	Court Action. By agreeing to arbitration, the Parties do not intend to deprive any
court of competent jurisdiction of its ability to issue any form of provisional remedy, including
but not limited to a preliminary remedy in aid of arbitration, or order any interim injunction. A
request for such provisional remedy or interim injunction by the parties to a court shall not be
deemed a waiver of this agreement to submit to arbitration.
	 
	13.4.	 	Continued Performance During Arbitration. During the period of submission to
arbitration and thereafter until the granting of the arbitral award, the Parties shall, except in
the event of termination, continue to perform all their obligations under this Agreement without
prejudice to a final adjustment in accordance with the said award.
	 
	13.5.	 	Survival. The provisions contained in this Clause 13 shall survive the termination or
expiration of this Agreement.
	 
	14.	 	MISCELLANEOUS
	 
	14.1.	 	Fees and Expenses. Each Party shall bear its own expenses in connection with legal
and other advisors retained by it in connection with the transaction.
	 
	14.2.	 	Successors and Assigns. This Agreement has been made solely for the benefit of the
Parties and their respective successors, personal representatives, heirs and estates and permitted
assigns and nothing herein is intended to confer any rights or remedies under or by reason of this
Agreement to any other Person.
	 
	14.3.	 	Assignment. The provisions of this Agreement shall be binding upon and accrue to the
benefit of the Parties and their respective successors and permitted assigns. Notwithstanding the
foregoing, none of the Parties may assign its rights and obligations in whole or in part hereunder
without the prior written consent of the other Parties, except that Standard Bank is permitted to
assign its rights to purchase the Purchased Shares and Standard Bank may also assign its rights
under this Agreement, in whole or in part, to any Person who acquires Shares held by Standard Bank.
	 
	14.4.	 	Further Assurances. Each Party undertakes to and with each other Party to do all
things reasonably within its power which are necessary or desirable to give full effect to the
spirit and intent of this Agreement.
	 
	14.5.	 	Amendments and Waivers. All amendments and other modifications hereof or

20

 

	 	 	waivers of the observance of any term hereof (either generally or in a particular instance and
either retroactively or prospectively) shall be in writing and signed by each of the Parties.
	 
	14.6.	 	No Waiver. The failure of a Party at any time to require observance or performance by
any other Party of any of the provisions of this Agreement shall in no way affect the Party’s right
to require such observance or performance at any time thereafter, nor shall the waiver by any Party
of a breach of any provision hereof be taken or held to be a waiver of any succeeding breach of
such provision. The rights and remedies provided in this Agreement are cumulative and not
exclusive of any rights or remedies otherwise provided by law.
	 
	14.7.	 	Severability. In case any one or more of the provisions contained in this Agreement
shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of all remaining provisions contained herein shall not in any way be affected or
impaired thereby; and the invalid, illegal or unenforceable provisions shall be interpreted and
applied so as to produce as near as may be the legal, economic and commercial result intended by
the Parties.
	 
	14.8.	 	Counterparts. This Agreement may be signed in any number of counterparts, each of
which is an original and all of which, taken together, constitute one and the same instrument. This
Agreement may also be executed and delivered by facsimile signature and in any number of
counterparts, each of which shall be deemed an original and all of which, taken together,
constitute one and the same instruments.
	 
	14.9.	 	Entire Agreement. This Agreement contains the entire understanding and agreement
between the Parties with respect to the subject matter hereof and supersedes and cancels all prior
oral and written agreements or representations, if any, among the Parties or any of them relating
to the subject matter thereof.

[Signature page follows]

21

 

IN WITNESS WHEREOF this Agreement has been duly executed as of the date and year first written
above.

	 	 	 	 	 
	STANDARD BANK PLC	 	 
	 
	 	 	 	 
	By:

	 	/s/
 

	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

22

 

	 	 	 	 	 
	FAR EAST ENERGY LIMITED	 	 
	 
	 	 	 	 
	By:

	 	/s/ Zhang Ruilin
 

	 	 
	 

	 	Name: Zhang Ruilin	 	 
	 

	 	Title: Director	 	 
	 
	 	 	 	 
	ZHANG RUILIN	 	 
	 
	 	 	 	 
	By:

	 	/s/ Zhang Ruilin
 

	 	 
	 

	 	Name: Zhang Ruilin	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	ZHAO JIANGWEI	 	 
	 
	 	 	 	 
	By:

	 	/s/ Zhao Jiangwei
 

	 	 
	 

	 	Name: Zhao Jiangwei	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	SHANG ZHIGUO	 	 
	 
	 	 	 	 
	By:

	 	/s/ Shang Zhiguo
 

	 	 
	 

	 	Name: Shang Zhiguo	 	 
	 

	 	Title:	 	 

23

 

SCHEDULE 1

PARTICULARS OF THE SHAREHOLDERS OF THE COMPANY

IMMEDIATELY PRIOR TO THE COMPLETION

	 	 	 	 	 	 	 	 	 
	 	 	No. of Ordinary Shares legally	 	 
	 	 	and beneficially owned by the	 	 
	Name of Shareholder/	 	Shareholder Immediately Prior	 	Percentage of Issued Share
	Address and Fax Number	 	to Completion	 	Capital
	Far East Energy Limited

	 	 	10,000,000	 	 	 	100	%
	Suite 406, Block C, Grand Place

	 	 	 	 	 	 	 	 
	5 Hui Zhong Road

	 	 	 	 	 	 	 	 
	Chaoyang District

	 	 	 	 	 	 	 	 
	Beijing 100101

	 	 	 	 	 	 	 	 
	PRC

	 	 	 	 	 	 	 	 
	Fax: (8610) 5123 8866
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 
	Total
	 	 	10,000,000	 	 	 	100	%
	 	 	 

PARTICULARS OF THE SHAREHOLDERS OF THE COMPANY

IMMEDIATELY AFTER THE COMPLETION

	 	 	 	 	 	 	 	 	 
	 	 	No. of Ordinary Shares legally	 	 
	 	 	and beneficially owned	 	Percentage of Issued Share
	Name of Shareholder/	 	immediately by the Shareholder	 	Capital
	Address and Fax Number	 	after the Completion	 	(on as-converted basis)
	Far East Energy Limited

	 	 	9,802,951	 	 	 	98.02951	%
	Suite 406, Block C

	 	 	 	 	 	 	 	 
	Grand Place

	 	 	 	 	 	 	 	 
	5 Hui Zhong Road

	 	 	 	 	 	 	 	 
	Chaoyang District

	 	 	 	 	 	 	 	 
	Beijing 100101

	 	 	 	 	 	 	 	 
	PRC

	 	 	 	 	 	 	 	 
	Fax: (8610) 5123 8866
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Standard Bank Plc

	 	 	197,049	 	 	 	1.97049	%
	Cannon Bridge House

	 	 	 	 	 	 	 	 
	25 Dowgate Hill

	 	 	 	 	 	 	 	 
	London EC 4R 2SB

	 	 	 	 	 	 	 	 
	Fax:
+852 2822 7947
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 
	Total
	 	 	10,000,000	 	 	 	100	%
	 	 	 

24

 

SCHEDULE 3

COMPANY WARRANTIES

	1.	 	Corporate Existence. Each of the Company and MIE is duly organised and validly
existing and in good standing under the laws of the Cayman Islands, and has all corporate
power to own, lease and operate all of its property and to carry on its business as it is now
being conducted.
	 
	2.	 	Authority. Except as set forth in the Standard Bank Facility, each of the Company and
MIE has full power and authority and full legal capacity to execute, deliver and perform its
obligations under this Agreement and the other Transaction Agreements to which it is a party.
The execution and delivery by each of the Company and MIE of this Agreement and the other
Transaction Agreements to which it is a party has been or will be, on or prior to the
Completion Date, authorised by all necessary corporate action; and this Agreement is, and each
of the other Transaction Agreements to which it is a party will be, when duly executed and
delivered, a valid and binding obligation of the Company and MIE respectively, enforceable in
accordance with its terms, except as such enforceability may be limited by bankruptcy,
reorganization, insolvency, moratorium or other laws affecting creditors’ rights generally and
subject to the application of general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law).
	 
	3.	 	Capitalisation.

	 	(a)	 	The authorised share capital of the Company on the Completion Date (without
giving effect to the Share Exchange, the Repurchase, the Subscription and the sale and
purchase to occur on the Completion Date under this Agreement) consists of (i)
15,000,000 shares of Ordinary Shares, 10,000,000 of which are issued and outstanding.
All the Shares in the issued share capital of the Company are duly and validly
authorized and issued, fully paid and non-assessable, and there is no Encumbrance over
or affecting any of such shares. The shareholders of the Company immediately prior to
the Completion are set forth in Schedule 1.
	 
	 	(b)	 	Upon the sale and transfer of the Purchased Shares to Standard Bank, in
accordance with the terms of this Agreement, Standard Bank will own valid, legal,
beneficial and marketable title to such Purchased Shares, free and clear of any
Encumbrances and with all rights attached thereto as set out in the articles of
association of the Company.
	 
	 	(c)	 	The authorised share capital of MIE on the date of this Agreement consists of
(i) 50,000 shares of MIE Ordinary Shares, 50,000 of which are issued and outstanding.
All the shares of MIE Ordinary Shares in the issued share capital of MIE are duly and
validly issued, fully paid and non-assessable and there is no Encumbrance over or
affecting any of such shares (other than any security interest that may have been
granted to Standard Bank pursuant to the Standard Bank Facility). The shareholders of
MIE as of the date of this Agreement and immediately prior to the Completion are set
forth in Schedule 1 and at Completion the Company will be the sole person holding any
interest in the

25

 

	 	 	 	shares of MIE or in relation to any unissued shares in MIE (other than any security
interest that may have been granted to Standard Bank pursuant to the Standard Bank
Facility).

	4.	 	Valid Issuance of Shares. The Purchased Shares, when issued, sold and delivered in
accordance with the terms and for the consideration set forth in this Agreement, will be duly
and validly issued, fully paid, non-assessable and free of restrictions on transfer other than
restrictions on transfer under the articles of association of the Company and the Transaction
Agreements. Assuming the accuracy of the warranties of Standard Bank, the Purchased Shares
will be issued, sold and transferred in compliance with all applicable securities laws.
	 
	5.	 	No Options. Neither the Company nor MIE has any outstanding commitment, obligation,
options, warrants, rights (including conversion, pre-emption rights or rights of first
refusal) to sell or to cause to be issued any share capital or any securities convertible into
or exchangeable for, or rights to acquire, any share capital, other than as contemplated by
the Transaction Agreements. No agreement or arrangement exists providing for the present or
future allotment, issue or transfer of any share capital of the Company other than as
contemplated by the Option Agreement. Except for this Agreement and the other Transaction
Agreements, there is no agreement, arrangement or obligation of any kind (and no authorization
therefor has been given) obligating the Company or MIE or any other person to repurchase,
redeem or otherwise acquire any outstanding shares of its share capital or any securities
convertible into or ultimately exchangeable or exercisable for any share capital. Except as
set forth in the Standard Bank Facility, neither the Company nor MIE is a party or subject to
any agreement, understanding or contractual rights, and, to the knowledge of the Company and
MIE, there is no agreement, understanding or contractual rights with any Person, which affects
or relates to distribution of dividends or the voting or giving of written consents with
respect to any security or by a director of the Company or MIE.
	 
	6.	 	Subsidiaries. MIE has not and has never had any Subsidiaries and is not and has never
been a legal or beneficial owner of any share or equity interests in any Person. The Company
has no assets, and has not had any assets, other than cash and shares in MIE.

26

 

EXHIBIT 1

OPTION AGREEMENT

27

 

			
	C L I F F O R D
	 	CLIFFORD CHANCE WONG PTE LTD
	 
	C H A N C E	 	 
	 
	W O N G
	 	EXECUTION COPY

DATED       JANUARY 2009

FAR EAST ENERGY LIMITED

as Seller

and

STANDARD BANK PLC

as Buyer

 

OPTION AGREEMENT

 

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page
	 
	1. Interpretation
	 	 	1	 
	 
	2. Grant of Option to Buy Shares
	 	 	4	 
	 
	3. Exercise of Option
	 	 	4	 
	 
	4. Cancellation of Option
	 	 	4	 
	 
	5. Completion
	 	 	4	 
	 
	6. Payment of Option Price
	 	 	6	 
	 
	7. Warranties
	 	 	6	 
	 
	8. Undertakings
	 	 	7	 
	 
	9. General
	 	 	7	 
	 
	10. Assignment
	 	 	8	 
	 
	11. Notices
	 	 	8	 
	 
	12. Governing Law and Jurisdiction
	 	 	9	 
	 
	13. Counterparts
	 	 	9	 
	 
	14. Invalidity
	 	 	9	 
	 
	SCHEDULE 1 Form of Option Notice
	 	 	10	 
	 
	SCHEDULE 2 Warranties
	 	 	11	 
	 
	SCHEDULE 3 Completion Requirements
	 	 	12	 

 

 

THIS DEED is made on       January 2009

BETWEEN:

	(1)	 	FAR EAST ENERGY LIMITED, a company organised under the
laws of Hong Kong (the “Seller”);
and
	 
	(2)	 	STANDARD BANK PLC (the “Buyer”).

THE PARTIES AGREE as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	In this Deed:
	 
	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in Hong Kong and the People’s Republic of China.
	 
	 	 	“Completion” means completion of an exercise of the option to buy some or all of the Option
Shares in accordance with this Deed.
	 
	 	 	“Encumbrance” means a mortgage, charge, pledge, assignment by way of security, lease,
easement, servitude, deposit arrangement, lien (statutory or other), option, restriction,
financing or similar statement or notice filed under any recording or notice statute,
preference, right of first refusal, right of pre-emption, third-party right or interest,
other encumbrance or security interest of any kind, or another type of preferential
arrangement (including, without limitation, a title transfer, retention arrangement, or
conditional sale) having similar effect.
	 
	 	 	“Final Completion” means the Completion
following which the Option Value becomes $0.
	 
	 	 	“IPO Application Date” means the date on which an application is first submitted to a
Recognised Exchange to list shares of the Option Vehicle on such Recognised Exchange in
connection with a proposed Qualified IPO, provided that at least 60 days prior to such
date:

	 	(a)	 	the Buyer is given written notice of the Option Vehicle’s intention to submit
such application on that date;
	 
	 	(b)	 	the Seller notifies the Buyer of the identity of its advisers in connection
with such proposed Qualified IPO; and

- 1 -

 

	 	(c)	 	the Seller provides the Buyer with a timetable (agreed between the Option
Vehicle and its advisers in connection with the proposed Qualified IPO) for the listing
of shares in the Option Vehicle in connection with the proposed Qualified IPO,

	 	 	and further provided that such application to the Recognised Exchange is in fact submitted on such
date.
	 
	 	 	“Option” means the rights granted to the Buyer by Clause 2 (Grant of Option to Buy Shares).
	 
	 	 	“Option Notice” means a written notice in the form (or substantially the form) set out in Schedule
1 from the Buyer to the Seller exercising the Option pursuant to Clause 2 (Grant of Option to Buy
Shares).
	 
	 	 	“Option Period” means the period commencing on and from (i) in the case of paragraphs (a) and (b)
below, the date falling six months from the date of this Deed, and (ii) in the case of paragraph
(c) below, the date of this Deed, to and including the earliest of:

	 	(a)	 	the day preceding the date falling 36 months after the SPA Completion;
	 
	 	(b)	 	the date falling 30 days prior to the IPO Application Date; and
	 
	 	(c)	 	the date falling two months after the consummation of the
Preferred Shares Transaction.

	 	 	“Option Price” means an amount in dollars calculated based on the following formula:

Requested Shares x Strike Price

	 	 	“Option Shares” means the Ordinary Option Shares or the Preferred Option Shares, as the case may
be.
	 
	 	 	“Option Value” means, at any time, $8,000,000 less the aggregate of the Option Prices paid by the
Buyer to the Seller in connection with each Completion prior to such time.
	 
	 	 	“Option Vehicle” means MIE Holdings Corporation, an exempted company incorporated with limited
liability in the Cayman Islands.
	 
	 	 	“Ordinary Shares” means the ordinary shares of the Company, par value $0.01 each.

- 2 -

 

	 	 	“Ordinary Option Shares” means, at any time, the number of Ordinary Shares calculated on the basis
of the following formula:

Option Value

Ordinary Shares Strike Price

	 	 	rounded up to the nearest share.
	 
	 	 	“Ordinary Shares Strike Price” means $26.00.
	 
	 	 	“Party” means a party to this Deed and “Parties” means both of them.
	 
	 	 	“Preferred Shares” means the first series of preferred shares of the Option Vehicle purchased and
sold in a Preferred Shares Transaction.
	 
	 	 	“Preferred Option Shares” means, at any time, the number of Preferred Shares calculated on the
basis of the following formula:

Option Value

Preferred Shares Strike Price

	 	 	rounded up to the nearest share.
	 
	 	 	“Preferred Shares Strike Price” means the purchase price per Preferred Share under the Preferred
Shares Transaction.
	 
	 	 	“Preferred Shares Transaction” means the first sale and purchase of Preferred Shares in the Option
Vehicle after the date of this Deed, provided that the aggregate purchase price for such Preferred
Shares is not less than $20,000,000 and further provided that such sale and purchase is completed
on or prior to the date falling 30 days prior to the IPO Application Date.
	 
	 	 	“Qualified IPO” has the meaning given in the SPA.
	 
	 	 	“Recognised Exchange” has the meaning given in the SPA.
	 
	 	 	“Requested Shares” has the meaning given to it in Clause 3.2 (Exercise of Option).
	 
	 	 	“SPA” means the shares purchase agreement entered or to be entered into between the Buyer, Zhang
Ruilin, Zhao Jiangwei, Shang Zhiguo and the Seller in relation to the sale by the Seller and the
purchase by the Buyer of 197,049 ordinary shares in the capital of the Option Vehicle.
	 
	 	 	“SPA Completion” has the meaning given to “Completion” in the SPA.
	 
	 	 	“Strike Price” means the Ordinary Shares Strike Price or the Preferred Shares Strike Price, as the
case may be.
	 
	 	 	“Warranty” means a statement contained in Schedule 2 and “Warranties” means all those statements.

- 3 -

 

	1.2	 	In this Deed, a reference to:

	 	1.2.1	 	a Clause, paragraph or Schedule, unless the context otherwise requires, is a
reference to a clause or paragraph of, or schedule to, this Deed;
	 
	 	1.2.2	 	a reference to any agreement or document is a reference to that agreement or
document as amended, consolidated, supplemented, novated or replaced from time to time;
and
	 
	 	1.2.3	 	“$” and “dollars” denote the lawful currency of the United States of America.

	1.3	 	The headings in this Deed do not affect its interpretation.
	 
	2.	 	GRANT OF OPTION TO BUY SHARES
	 
	2.1	 	In consideration of the sum of $1 (the sufficiency of which the Seller hereby
acknowledges), the Seller irrevocably grants to the Buyer an option to buy and to require the
Seller to transfer to the Buyer (and/or such person(s) as the Buyer directs) (i) if the Option
Vehicle does not issue any Preferred Shares pursuant to a Preferred Shares Transaction during
the Option Period, all or any of the Ordinary Option Shares, or (ii) if the Option Vehicle
issues any Preferred Shares pursuant to a Preferred Shares Transaction during the Option
Period, any or all of the Preferred Option Shares.
	 
	2.2	 	The Option Shares shall be sold with full title guarantee free from any Encumbrance and with
all rights attaching to the Option Shares at the date of the relevant Completion.
	 
	3.	 	EXERCISE OF OPTION
	 
	3.1	 	The Option may be exercised only by the delivery by the Buyer to the Seller of an Option
Notice at any time during the Option Period.
	 
	3.2	 	The Option Notice must specify the date of Completion, which must be a Business Day not less
than three Business Days after the delivery of the relevant Option Notice (notwithstanding
that such Business Day may fall outside the Option Period) and the number of Option Shares to
which the Option Notice relates (the “Requested Shares”).
	 
	3.3	 	The Option may be exercised by the Buyer in whole or in part and, if in part, on any number
of occasions.
	 
	4.	 	CANCELLATION OF OPTION
	 
	 	 	If the Buyer has not submitted an Option Notice prior to such time, the Option shall
be automatically cancelled in full on the last day of the Option Period.
	 
	5.	 	COMPLETION
	 
	5.1	 	Completion shall take place by 3.00 p.m. on the date specified in the Option Notice at
the offices of the Buyer’s legal advisers, or at another time or place agreed by the Seller
and the Buyer.

- 4 -

 

	5.2	 	At Completion:

	 	5.2.1	 	the Seller shall deliver to the Buyer the documents specified in Schedule 3
(Completion Requirements);
	 
	 	5.2.2	 	the Seller shall sign all documents and take all other action necessary to
enable the Buyer (and/or such other person as the Buyer directs) to become the
registered and beneficial owner of the Requested Shares being transferred to the Buyer
(and/or such other person as the Buyer directs) including, without limitation, the use
of the voting and other rights arising by its holding of shares in the capital of the
Option Vehicle and to ensure that the Buyer’s (and/or such other person’s) name is
entered in the register of members of the Option Vehicle as the holder of those
Requested Shares; and
	 
	 	5.2.3	 	the Buyer shall pay the Option Price to the Seller in accordance with Clause 6
(Payment of Option Price).

	5.3	 	The Buyer is not obliged to pay the Option Price unless:

	 	5.3.1	 	the Seller complies with all of its obligations under this Clause 5 and
Schedule 3 (Completion Requirements);
	 
	 	5.3.2	 	the transfer to the Buyer (and/or such other person as the Buyer directs) of
all of the relevant Requested Shares is completed simultaneously; and
	 
	 	5.3.3	 	all such consents and/or waivers as may be required under any applicable laws
and/or the Finance Documents for the transfer of the relevant Requested Shares to the
Buyer (and/or such other person as the Buyer directs) have been obtained in form and
substance satisfactory to the Buyer.

	5.4	 	If Completion does not take place on the date set for Completion pursuant to Clause 5.1
because the Seller fails to comply with any of its obligations under this Clause 5 (whether or
not such failure amounts to a repudiatory breach), the Buyer may, by notice to the Seller:

	 	5.4.1	 	proceed to Completion to the extent reasonably practicable (but if the Buyer
exercises its option pursuant to this Clause 5.4.1, completion of the purchase of some
of the Requested Shares does not affect the Buyer’s rights in connection with the other
Requested Shares); or
	 
	 	5.4.2	 	postpone Completion to a date not more than ten Business Days after the date
set for Completion in Clause 5.1 (notwithstanding that such date may fall outside the
Option Period); or
	 
	 	5.4.3	 	terminate this Deed; or
	 
	 	5.4.4	 	revoke the relevant Option Notice, in which case the Requested Shares
specified in such Option Notice shall remain subject to the Option and may be included
in a new Option Notice.

- 5 -

 

	5.5	 	If the Buyer postpones Completion to another date in accordance with Clause
5.4.2, the provisions of this Deed apply as if that other date is the date set for
Completion in Clause 5.1.
	 
	5.6	 	If the Buyer terminates this Deed pursuant to Clause 5.4.3 or Clause 7 (Warranties), each
Party’s further rights and obligations cease immediately on termination, but termination does
not affect a Party’s accrued rights and obligations at the date of termination.
	 
	6.	 	PAYMENT OF OPTION PRICE
	 
	 	 	The Buyer shall pay the Option Price in cash into an account in the Seller’s name (as
notified by the Seller to the Buyer) for value on the date of the relevant Completion.
	 
	7.	 	WARRANTIES
	 
	7.1	 	The Seller warrants to the Buyer that each Warranty is true, accurate and not misleading
at the date of this Deed. On and immediately before Completion, the Seller is deemed to
warrant to the Buyer that each Warranty is true, accurate and not misleading by reference to
the facts and circumstances at the date of Completion. For this purpose an express or implied
reference in a Warranty to the “date of this Deed” is to be construed as a reference to the
“date of Completion”.
	 
	7.2	 	The Seller acknowledges that the Buyer is entering into this Deed in reliance on each
Warranty which has also been given as a representation and with the intention of inducing the
Buyer to enter into this Deed.
	 
	7.3	 	Between the date of this Deed and Final Completion, the Seller shall notify the Buyer
immediately if it becomes aware of any fact or circumstance which constitutes or which would
or might constitute a breach of Clause 7.1 or which would or might cause a Warranty to be
untrue, inaccurate or misleading if given in respect of the facts or circumstances at the date
the Seller becomes aware of the same.
	 
	7.4	 	If, at any time before Final Completion, the Buyer considers that the Seller is in breach of
any provision of this Deed (whether or not such breach amounts to a repudiatory breach) or if
the Seller gives a notice under Clause 7.3, the Buyer may, in its discretion, elect to proceed
to Completion in respect of all or any of the Option Shares by delivery of an Option Notice or
Option Notices in accordance with Clause 3 (Exercise of Option) or terminate this Deed.
	 
	7.5	 	If the Buyer terminates this Deed pursuant to Clause 7.4, the Seller shall indemnify the
Buyer, and keep the Buyer indemnified, on demand against all its costs, liabilities,
obligations, damages, expenses and losses however arising which the Buyer may suffer or incur
by reason of any breach of any provisions of this Deed by the Seller.
	 
	7.6	 	Each Warranty is to be construed independently and (except where this Deed provides
otherwise) is not limited by a provision of this Deed or another Warranty.

- 6 -

 

	8.	 	UNDERTAKINGS
	 
	 	 	Until Final Completion, the Seller shall not (without having first obtained the
Buyer’s written consent):

	 	(a)	 	sell, transfer or otherwise dispose of any interest in any of the Option Shares
or any right attaching to the Option Shares (except as required pursuant to this Deed);
or
	 
	 	(b)	 	create or allow to be created any Encumbrance over the Option Shares (except
pursuant to the Transaction Security).

	9.	 	GENERAL
	 
	9.1	 	A variation of this Deed is valid only if it is in writing and signed by or on behalf of
each Party.
	 
	9.2	 	The failure to exercise or delay in exercising a right or remedy provided by this Deed or by
law does not impair or constitute a waiver of the right or remedy or an impairment of or a
waiver of other rights or remedies. No single or partial exercise of a right or remedy
provided by this Deed or by law prevents further exercise of the right or remedy or the
exercise of another right or remedy.
	 
	9.3	 	The Buyer’s rights and remedies contained in this Deed are cumulative and not exclusive of
rights or remedies provided by law.
	 
	9.4	 	Each date, time or period referred to in this Deed is of the essence. If the Parties agree in
writing to vary a date, time or period, the varied date, time or period is of the essence.
	 
	9.5	 	Except to the extent that they have been performed and except where this Deed provides
otherwise the obligations contained in this Deed remain in force after Final Completion and
this Deed shall terminate automatically upon the performance in full of such obligations.
	 
	9.6	 	A person who is not a Party to this Deed has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce any term of this Deed but this does not affect any right or
remedy of a third party which exists or is available apart from that Act.
	 
	9.7	 	This Deed supersedes any previous written or oral agreement between the Parties in relation
to the matters dealt with in this Deed and contains the entire agreement between the Parties
relating to the subject matter of this Deed at the date hereof to the exclusion of any terms
implied by law which may be excluded by contract.
	 
	9.8	 	The Seller shall bear all costs and expenses (including taxes and duties) in relation to this
Deed.

- 7 -

 

	10.	 	ASSIGNMENT
	 
	10.1	 	The Seller may not (and may not purport to) assign or transfer or declare a trust of
the benefit of or in any other way alienate any of its rights under this Deed in whole or in
part without having first obtained the Buyer’s written consent.
	 
	10.2	 	The Buyer may assign its rights or transfer its rights and obligations under this Deed and
the Seller agrees, at its own cost, to do all acts and things as may be required by the Buyer
to effect any such assignment or transfer.
	 
	11.	 	NOTICES
	 
	11.1	 	Communications in writing
	 
	 	 	Any communication to be made under or in connection with this Deed shall be made in writing
and, unless otherwise stated, may be made by fax or letter.
	 
	11.2	 	Addresses
	 
	 	 	The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with this Deed is that identified with its name below, or
any substitute address, fax number or department or officer as a Party may notify to the
other Party by not less than five Business Days’ notice.
	 
	11.3	 	Delivery

	 	11.3.1	 	Any communication or document made or delivered by one person to another under or in
connection with this Deed will only be effective:

	 	(a)	 	if by way of fax, when received in legible form; or
	 
	 	(b)	 	if by way of letter, when it has been left at the relevant
address or five Business Days after being deposited in the post postage
prepaid in an envelope addressed to it at that address,

	 	 	 	and, if a particular department or officer is specified as part of its address
details provided under Clause 11.2 (Addresses), if addressed to that department or
officer.
	 
	 	11.3.2	 	Any communication or document to be made or delivered to the Buyer will be effective
only when actually received by the Buyer and then only if it is expressly marked for
the attention of the department or officer identified with the Buyer’s signature below
(or any substitute department or officer as the Buyer shall specify for this purpose).

	11.4	 	English language

	 	11.4.1	 	Any notice given under or in connection with this Deed must be in English.
	 
	 	11.4.2	 	All other documents provided under or in connection with this Deed must be:

- 8 -

 

	 	(a)	 	in English; or
	 
	 	(b)	 	if not in English, and if so required by the Buyer,
accompanied by a certified English translation and, in this case, the English
translation will prevail unless the document is a constitutional, statutory
or other official document.

	12.	 	GOVERNING LAW AND JURISDICTION
	 
	12.1	 	This Deed is governed by English law.
	 
	12.2	 	The courts of England have exclusive jurisdiction to settle any dispute arising from or
connected with this Deed (a “Dispute”).
	 
	12.3	 	The Parties agree that the courts of England are the most appropriate and convenient courts
to settle any Dispute and, accordingly, that they will not argue to the contrary.
	 
	12.4	 	This Clause is for the benefit of the Buyer only. As a result it does not prevent the Buyer
from taking proceedings relating to a Dispute (“Proceedings”) in any other court with
jurisdiction. To the extent allowed by law, the Buyer may take concurrent Proceedings in any
number of jurisdictions.
	 
	13.	 	COUNTERPARTS
	 
	 	 	This Deed may be executed in any number of counterparts, each of which when executed
and delivered is an original and all of which together evidence the same agreement.
	 
	14.	 	INVALIDITY
	 
	 	 	If at any time any provision of this Deed is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, that shall not affect or
impair:

	 	14.1.1	 	the legality, validity or enforceability in that jurisdiction of any other provision
of this Deed; or
	 
	 	14.1.2	 	the legality, validity or enforceability under the law of any other jurisdiction of
that or another provision of this Deed.

IN WITNESS WHEREOF, this Deed has been signed by the Buyer and duly executed as a deed by the
Seller and is intended to be and is hereby delivered by it as a deed on the date specified above.

- 9 -

 

SCHEDULE 1

Form of Option Notice

[BUYER’S LETTERHEAD]

			
	To:	 	Far East Energy Limited (the “Seller”)

[Address]

			
	Date:	 	[insert date]

OPTION NOTICE

	1.	 	We refer to the Option Agreement dated [     ] between Far East Energy Limited and Standard
Bank PLC (the “Option Agreement”).
	 
	2.	 	Terms defined in the Option Agreement shall have the same meanings in this Option Notice
unless the context requires otherwise. References to a Clause are to a clause of the Option
Agreement.
	 
	3.	 	The Buyer hereby notifies the Seller pursuant to Clause 3 (Exercise of Option) that it wishes
to exercise the Option granted in Clause 2.1 to buy [insert number of shares required] Option
Shares at a Strike Price of $[     ], subject to the terms of the Option Agreement.
	 
	4.	 	The date of Completion shall be [insert date].

	 	 	 
	 

	 	 
	Signed by [  ]
	 	 
	for and on behalf of
	 	 
	Standard Bank PLC
	 	 

-10-

 

SCHEDULE 2

Warranties

	1.	 	CAPACITY AND AUTHORITY
	 
	1.1	 	Incorporation and existence
	 
	 	 	The Seller is a company established under the laws of Hong Kong and has been in continuous
existence since its establishment.
	 
	1.2	 	Right, power, authority and action

	 	1.2.1	 	The Seller has the right, power and authority, and has taken all action
necessary, to execute, deliver and exercise its rights, and perform its
obligations, under this Deed and each document to be executed at or before Completion
or for the exercise of the Option.
	 
	 	1.2.2	 	The Seller has the right, power and authority to conduct its business as
conducted at the date of this Deed.

	1.3	 	Binding agreements
	 
	 	 	The Seller’s obligations under this Deed and each document to be executed at or before
Completion are, or when the relevant document is executed will be, valid, binding and
enforceable in accordance with their terms.
	 
	2.	 	SHARES
	 
	2.1	 	Save for this Deed, there is no Encumbrance, and there is no agreement, arrangement or
obligation to create or give an Encumbrance, in relation to any of the Option Shares. No
person has claimed to be entitled to any Encumbrance in relation to any of the Option Shares.
	 
	2.2	 	The Seller has the right to transfer full legal and beneficial title to the Option Shares.
	 
	2.3	 	The Option Shares will be delivered to the Buyer (and/ or such person(s), as it directs) free
from any Encumbrance.
	 
	2.4	 	The Option Shares are fully paid up and will rank at least pari passu with all other shares
of the Option Vehicle of the same class in issue.

-11-

 

SCHEDULE 3

Completion Requirements

	1.	 	At Completion, the Seller shall deliver to the Buyer:

	 	1.1.1	 	the share certificate(s) for the Requested Shares being transferred by the
Seller;
	 
	 	1.1.2	 	any stock transfer document or other document, executed by the Seller and in
favour of the Buyer (or such person(s), as it directs), reasonably requested by the
Buyer; and
	 
	 	1.1.3	 	as evidence of the authority of each person executing a document referred to
in this Schedule 3 on the Seller’s behalf:

	 	(a)	 	a copy of the minutes of a duly held meeting of the directors
of the Seller (or a duly constituted committee thereof) authorising the
execution by the Seller of the document and, where such execution is
authorised by a committee of the board of directors of the Seller, a copy of
the minutes of a duly held meeting of the directors constituting such
committee or a relevant extract thereof; or
	 
	 	(b)	 	a copy of the power of attorney conferring the authority,
in each case certified to be true by a director or the secretary of the Seller.

	1.2	 	The Seller shall ensure that at Completion a meeting of the board of directors of the Option
Vehicle is held at which the directors vote in favour of the registration of the Buyer or such
person(s), as it directs as member(s) of the Option Vehicle in respect of the Requested Shares
(subject to the production of properly stamped transfers).
	 
	1.3	 	The Seller shall, within five Business Days of Completion:

	 	1.3.1	 	ensure that new share certificates for the Requested Shares are issued in the
name of the Buyer (or such person(s), as it directs); and
	 
	 	1.3.2	 	provide the Buyer with a certified copy of the register of members of the
Option Vehicle evidencing the Buyer’s (or such other person’s) ownership of the
Requested Shares.

	1.4	 	The Seller shall promptly take all other action which may, in the opinion of the Buyer, be
necessary to effect the transfer of the Requested Shares to the Buyer (or such person(s), as
it directs).

-12-

 

OPTION AGREEMENT BETWEEN

FAR EAST ENERGY LIMITED AND

STANDARD BANK PLC

SIGNATURE PAGE

The Seller

	 	 	 	 	 
	The COMMON SEAL of

	 	 	)	 
	FAR EAST ENERGY LIMITED

	 	 	)	 
	was affixed hereto

	 	 	)	 
	in the presence of:

	 	 	)	 

	 	 	 	 	 
	 
	 	 	 
	Director
	 	 	 	 
	 
	Address:

	 	Suite 406, Block C	 	 
	 

	 	Grand Palace	 	 
	 

	 	5 Hui Zhong Road	 	 
	 

	 	Chaoyang District	 	 
	 

	 	Beijing 100101	 	 
	 

	 	Peoples Republic of China	 	 
	 
	 	 	 	 
	Attention:

	 	Mr. Zhang Ruilin	 	 
	Facsimile:

	 	+ 86 10 8489 2290	 	 

 

 

OPTION AGREEMENT BETWEEN

FAR EAST ENERGY LIMITED AND

STANDARD BANK PLC

The Buyer

STANDARD BANK PLC

	 	 	 
	By:
	 	 
	 
	 	 
	Address:

	 	Cannon Bridge House
	 

	 	25 Dowgate Hill
	 

	 	London EC4R 2SB
	 
	 	 
	Attention:

	 	John Wixley c/o Standard Bank Asia Limited
	Facsimile:

	 	+852 2822 7999

 

 

EXHIBIT 2

FORM OF REPAYMENT ACKNOWLEDGEMENT

[STANDARD BANK PLC’S LETTERHEAD]

			
	To:	 	Far East Energy Limited (the “Seller”)

[Address]

			
	Date:	 	[insert date]

	1.	 	We refer to the Ordinary Shares Purchase Agreement dated                     , 2008 among
Standard Bank Plc, Zhang Ruilin, Zhao Jiangwei, Shang Zhiguo and the Seller (the “Purchase
Agreement”).
	 
	2.	 	We refer also to a Term Facility Agreement dated                     , 2008 among the Seller
as Borrower, Standard Bank Asia Limited as Arranger, Agent and Security Trustee (“Standard
Bank”), and the Original Lenders (as such term is defined therein) (the “Bridge Facility”).
	 
	3.	 	Terms defined in the Purchase Agreement shall have the same meanings in this Repayment
Acknowledgement unless the context requires otherwise.
	 
	4.	 	Pursuant to Clause 7.4 of the Bridge Facility, as Standard Bank Plc is both party to the
Purchase Agreement and a lender under the Bridge Facility, it shall, upon the transfer to it
of the Purchased Shares at the Completion, be deemed to have been prepaid an amount equal to
the Purchase Price for the Purchased Shares.
	 
	5.	 	Standard Bank Plc hereby notifies the Seller that, pursuant to Clause 7.4 of the Bridge
Facility, in consideration of the transfer to Standard Bank Plc of the Purchased Shares at the
Completion, the outstanding Loans made by it to the Seller under the Bridge Facility
(amounting to US$5,123,274.09) shall be deemed to be fully and completely repaid upon such
transfer.
	 
	6.	 	The date of the Completion shall be [insert date].
	 
	7.	 	This Repayment Acknowledgement is governed by English law.

	 	 	 
	 

	 	 
	Signed by [  ]
	 	 
	for and on behalf of
	 	 
	Standard Bank Plc
	 	 

			
	Cc:	 	Standard Bank Asia Limited, as Agent

28

 

EXHIBIT 3

SHARE EXCHANGE AGREEMENT

29

 

SHARE EXCHANGE AGREEMENT

THIS SHARE EXCHANGE AGREEMENT (this “Agreement”) is dated as of
                                         by and between Far East Energy Limited (“FEEL”) and MIE
Holdings Corporation (“MIE Holdings”). Each of FEEL and MIE Holdings is hereinafter
referred to as a “Party” and collectively as the “Parties”.

WHEREAS, FEEL owns 50,000 ordinary shares, par value US$1.00 each in the capital of MI Energy
Corporation (the “FEEL Shares”);

WHEREAS, MIE Holdings has issued 1 ordinary share, par value US$1.00, which is owned by FEEL and
which shall be sub-divided into 100 ordinary shares, par value US$0.01 each (each an “Ordinary
Share”) prior to the Closing. MIE Holdings shall have an authorized share capital of US$100,000
divided into 10,000,000 ordinary shares of a par value of US$0.01 each prior to Closing;

WHEREAS, it is a condition to the completion of the Shares Purchase Agreement dated
                                        (the “Shares Purchase Agreement”), entered into among Standard
Bank Plc, FEEL, Zhang Ruilin, Zhao Jiangwei and Shang Zhiguo, that FEEL exchanges with MIE
Holdings the FEEL Shares for 999,900 Ordinary Shares (the “Exchange Ordinary Shares”); and

WHEREAS, the Parties wish to consummate such exchange on the terms and subject to the conditions
set forth in this Agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained
in this Agreement, and in order to consummate the Share Exchange (as defined below), the Parties
hereby agree as follows:

1. DEFINITIONS

     1.1 Definitions. In this Agreement, all capitalized but undefined terms have the
meaning given such terms in the Purchase Agreement and the following words or expressions have the
following meanings:

     “Agreement” has the meaning given such term in the preamble of this Agreement.

     “Completion”
has the meaning given such term in the Share Purchase Agreement.

     “Closing” has the meaning given such term in Clause 2.3.

     “Exchange Ordinary Shares” has the meaning given such term in the third recital.

     “FEEL” has the meaning given such term in the preamble of this Agreement.

     “FEEL Shares” has the meaning given such term in the first recital.

     “MIE Holdings” has the meaning given such term in the preamble of this Agreement.

     “Ordinary Shares” has the meaning given such term in the second recital.

 

 

Page 2

     “Party” and “Parties” has the meaning given such terms in the preamble of this Agreement.

     “Share Exchange” has the meaning given such term in Clause 2.2.

     “Share Purchase Agreement” has the meaning given such term in the third recital.

2. SHARE EXCHANGE

     2.1 Authorization of Ordinary Shares. Upon the terms and subject to the conditions
of this Agreement, MIE Holdings will authorize the sale and issuance to FEEL of the Exchange
Ordinary Shares.

     2.2
Exchange. Upon the terms and subject to the conditions of this Agreement, at the
Closing, FEEL shall sell, convey and transfer the FEEL Shares to MIE Holdings and MIE Holdings
shall purchase from FEEL the FEEL Shares owned by FEEL in consideration of the issuance by MIE
Holdings to FEEL of the Exchange Ordinary Shares (the “Share Exchange”).

     2.3 Closing. The closing of the Share Exchange (the “Closing”), shall be held
immediately prior to the Completion. At the Closing, (a) FEEL shall deliver to MIE Holdings (i)
board resolutions of MI Energy Corporation approving the transfer of the FEEL Shares to MIE
Holdings; (ii) updated Register of Members of MI Energy Corporation evidencing the ownership of the
FEEL Shares in the name of MIE Holdings; (iii) certificates representing the FEEL Shares duly
endorsed for transfer and accompanied by appropriate share transfer forms duly executed in blank
and (b) MIE Holdings shall deliver to FEEL (i) board resolutions of MIE Holdings approving the
issuance of the Exchange Ordinary Shares to FEEL; (ii) updated Register of Members of MIE Holdings
evidencing the ownership of the Exchange Ordinary Shares in the name of FEEL; (iii) certificates
representing the Exchange Ordinary Shares issued in the name of FEEL.

3. REPRESENTATIONS AND WARRANTIES OF FEEL.

     FEEL represents and warrants to MIE Holdings that:

     3.1. It is a company, corporation, or limited partnership, as the case may be, duly
organized and validly existing under the laws of the jurisdiction in which it is organized;

     3.2 It is the lawful owner, beneficially and of record, of and will have valid and marketable
title to 50,000 MIE Ordinary Shares (which constitute all of the issued and allotted share capital
of MI Energy Corporation), free and clear of any claims, liens, charges, encumbrances, security
interests or other rights of any third parties or any options or purchase agreements or
restrictions of any nature;

     3.3 It is not a party to any contract creating rights in respect of the 50,000 MIE Ordinary
Shares in any third Person or relating to the voting of such Ordinary Shares or which would
otherwise restrict its ownership of such Ordinary Shares;

     3.4 It has the full power and authority and full legal capacity to execute, deliver and
perform its obligations under this Agreement and this Agreement has been duly executed

 

 

Page 3

and delivered and constitutes a valid and binding obligation of it enforceable in accordance with
its terms, except that such enforcement may be subject to or limited by bankruptcy, insolvency,
moratorium or other laws affecting creditors’ rights generally and subject to the application of
general principles of equity;

     3.5 The execution, delivery and performance of this Agreement will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under (i) any Governmental
Rule or order of any Governmental Authority or any court, domestic or foreign, having jurisdiction
over it or any of their respective properties, (ii) any material agreement or instrument to which
it is a party or by which it is bound or to which any of its properties is subject, or (iii) the
organizational documents of it other than where such breach, violation or default has not and is
not reasonably likely to have an adverse affect on the ability to perform its obligations under
this Agreement;

     3.6 It is not and will not be required to give any notice or to make any filing with or obtain
any Permit, consent, waiver or other authorization from any governmental or regulatory authority
or other Person in connection with the execution, delivery and performance of this Agreement;
and

     3.7 There is no legal, administrative, arbitration or other action or proceeding or
governmental investigation pending, or, to its knowledge, threatened, against it that challenges
the validity or performance of this Agreement or which, if successful, could hinder or prevent it
from performing its obligations hereunder.

4. MISCELLANEOUS

     4.1 Governing Law. The interpretation and construction of this Agreement, and all
matters relating hereto, shall be governed by laws of the State of New York.

     4.2 Captions. The captions used herein are for reference purposes only, and shall not
in any way affect the meaning or interpretation of this Agreement.

     4.3 Assignment. This Agreement and all covenants and agreements contained herein and
rights, interests or obligations hereunder, by or on behalf of either Party, shall bind and inure
to the benefit of the respective successors and permitted assigns of the Parties whether so
expressed or not, except that neither this Agreement nor any of the covenants and agreements herein
or rights, interests or obligations hereunder may be assigned or delegated by either Party, without
the prior written consent of the other Party.

     4.4 Counterparts. This Agreement may be executed in two or more counterparts, all of
which taken together shall constitute one instrument.

     4.5 Entire Agreement. This Agreement, including the other documents referred to herein
which form a part hereof, contains the entire understanding of the Parties with respect to the
subject matter contained herein and therein. This Agreement supersedes all prior agreements and
understandings between the Parties with respect to such subject matter.

     4.6 Amendments. This Agreement may not be changed, and any of the terms, covenants,
representations, warranties and conditions cannot be waived, except pursuant to an instrument in
writing signed by both Parties or, in the case of a waiver, by the Party waiving compliance.

 

 

Page 4

     4.7
Severability. If any term, provision, agreement, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, agreements, covenants and restrictions of
this Agreement shall remain in full force and effect and shall in no way be affected, impaired or
invalidated so long as the economic or legal substance of the transactions contemplated hereby is
not affected in any manner materially adverse to either Party. Upon such a determination, 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 a reasonably acceptable manner in order that the
transactions contemplated hereby may be consummated as originally contemplated to the fullest
extent possible.

[Signature page follows]

 

 

Page 5

IN WITNESS WHEREOF, this Agreement has been executed by each Party on the date first above
written.

	 	 	 	 	 	 	 
	 	 	FAR EAST ENERGY LIMITED	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Zhang Ruilin
 

Name: Zhang Ruilin
	 	 
	 

	 	 	 	Title:   Director	 	 
	 
	 	 	 	 	 	 
	 	 	MIE HOLDINGS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Forrest Dietrich
 

Name: Forrest Dietrich
	 	 
	 

	 	 	 	Title:   Director	 	 

 

 

EXHIBIT 4

STANDARD BANK AMENDMENT

30

 

			
	 	 	 
	CLIFFORD
	 	CLIFFORD CHANCE WONG PTE LTD
	CHANCE	 	 
	WONG
	 	EXECUTION COPY

NEW FIRST AMENDMENT AND RESTATEMENT AGREEMENT

Dated                      January 2009

for

MI ENERGY CORPORATION

arranged by

STANDARD BANK ASIA LIMITED

with

STANDARD BANK ASIA LIMITED

acting as Agent

 

RELATING TO A BORROWING BASE FACILITY

AGREEMENT DATED 29 OCTOBER 2007, AS THE SAME

WAS AMENDED BY A WAIVER AND AMENDMENT

LETTER DATED 23 NOVEMBER 2007

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. Definitions And Interpretation
	 	 	1	 
	 
	 	 	 	 
	2. Restatement
	 	 	2	 
	 
	 	 	 	 
	3. Representations
	 	 	2	 
	 
	 	 	 	 
	4. Continuity And Further Assurance
	 	 	3	 
	 
	 	 	 	 
	5. Acknowledgement Of Satisfaction Of Certain Conditions Subsequent
	 	 	3	 
	 
	 	 	 	 
	6. Release Of Far East Share Charge
	 	 	3	 
	 
	 	 	 	 
	7. Termination Of Amendment And Restatement Agreement Dated 6 June 2008
	 	 	3	 
	 
	 	 	 	 
	8. Waiver Of Subordination And Repayment Of Shareholder Loans
	 	 	3	 
	 
	 	 	 	 
	9. Write-Off Of SPRB-ZR Loan
	 	 	4	 
	 
	 	 	 	 
	10. Miscellaneous
	 	 	4	 
	 
	 	 	 	 
	11. Governing Law
	 	 	4	 
	 
	 	 	 	 
	Schedule 1 Conditions Precedent
	 	 	6	 
	 
	 	 	 	 
	Schedule 2 Restated Agreement
	 	 	8	 
	 
	 	 	 	 
	Schedule 3 Form Of Prc Legal Opinion
	 	 	9	 
	 
	 	 	 	 
	Schedule 4 Form Of ZR Guarantee
	 	 	10	 
	 
	 	 	 	 
	Schedule 5 Form Of Assignment Of ZR Guarantee 
	 	 	11	 
	 
	 	 	 	 

- 1 -

 

THIS AGREEMENT is dated                January 2009 and is made between:

	(1)	 	MI ENERGY CORPORATION, a corporation organised and existing under the laws of the Cayman
Islands and having an office at: c/o M&C Corporate Services Limited, P.O. Box 309 GT, Ugland
House, South Church Street, George Town, Grand Cayman, Cayman Islands (the “Borrower”);
	 
	(2)	 	STANDARD BANK ASIA LIMITED as arranger (the “Arranger”);
	 
	(3)	 	THE LENDERS (as defined in the Original Facility Agreement);
	 
	(4)	 	STANDARD BANK ASIA LIMITED as agent of the other Finance Parties (the “Agent”);
	 
	(5)	 	STANDARD BANK ASIA LIMITED as security trustee for the other Secured Parties
(the “Security Trustee”);
	 
	(6)	 	STANDARD BANK ASIA LIMITED as technical bank (the “Technical Bank”);
	 
	(7)	 	STANDARD BANK PLC as offshore account bank (the “Offshore Account Bank”);
	 
	 	 	and
	 
	(8)	 	THE HEDGE COUNTERPARTIES (as defined in the Original Facility Agreement).

IT IS AGREED as
follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement:
	 
	 	 	“First Effective Date” means the date on which the Agent confirms to the Lenders and the
Company that it has received each of the documents listed in Schedule 1 (Conditions
Precedent) in a form and substance satisfactory to the Agent.
	 
	 	 	“Interim Loan” has the meaning given in paragraph (a)(i) of Clause 8 (Waiver of
Subordination and Repayment of Shareholder Loans).
	 
	 	 	“Original Facility Agreement” means the up to $150,000,000 borrowing base facility
agreement dated 29 October 2007 between the Borrower, the Agent, the Arranger, the Security
Trustee, the Lenders and others as the same was amended pursuant to a waiver and amendment
letter dated 23 November 2007.
	 
	 	 	“Restated Agreement” means the Original Facility Agreement, as amended by this Agreement,
the terms of which are set out in Schedule 2 (Restated Agreement).
	 
	 	 	“Transferred ZR Loan” has the meaning given in paragraph (a)(i) of Clause 8 (Waiver of
Subordination and Repayment of Shareholder Loans).
	 
	 	 	“ZR Guarantee” has the meaning given in paragraph (a) of Clause 8 (Waiver of Subordination
and Repayment of Shareholder Loans).

- 1 -

 

	1.2	 	Incorporation of defined terms

	 	(a)	 	Unless a contrary indication appears, a term defined in the Restated
Agreement has the same meaning in this Agreement.
	 
	 	(b)	 	The principles of construction set out in the Restated Agreement shall have
effect as if set out in this Agreement.

	1.3	 	Clauses

	 	 	In this Agreement any reference to a “Clause” or a “Schedule” is, unless the context
otherwise requires, a reference to a Clause or a Schedule to this Agreement.

	1.4	 	Third party rights

	 	 	A person who is not a party to this Agreement has no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this
Agreement.

	2.	 	RESTATEMENT

	2.1	 	Restatement of the Original Facility Agreement

	 	 	With effect from the First Effective Date the Original Facility Agreement shall be
amended and restated so that it shall be read and construed for all purposes as set out in
Schedule 2 (Restated Agreement.)

	2.2	 	Waiver

	 	(a)	 	The Finance Parties permanently and irrevocably waive any Default which is
continuing and which has resulted from the Borrower’s breach of its obligations
under Clause 22.25 (SPA) of the Original Facility Agreement.
	 
	 	(b)	 	The Finance Parties:

	 	(i)	 	waive any Default which is continuing and has resulted from; and
	 
	 	(ii)	 	agree to waive any Default which may arise as a result of,

	 	 	 	the Borrower’s breach of its obligations to deliver Financial Projections on each
Scheduled Redetermination Date occurring prior to 30 September 2008 in accordance
with Clause 6.1 (Timing of Financial Projection) and Clause 6.2 (Preparation of
Financial Projection) of the Original Facility Agreement provided that the Agent
may, by thirty days’ prior notice to the Borrower and the Technical Bank, designate
any Business Day prior to 30 September 2008 as a “Redetermination Date”. The rights
of the Agent in this paragraph shall be in addition to (and without prejudice to)
the rights conferred on the Agent pursuant to paragraph (e) of the definition of
“Redetermination Date”.

	3.	 	REPRESENTATIONS

	 	 	The Repeating Representations are deemed to be made by the Borrower (by reference to
the facts and circumstances then existing) on:

	 	(a)	 	the date of this Agreement; and

- 2 -

 

	 	(b)	 	the First Effective Date.

	4.	 	CONTINUITY AND FURTHER ASSURANCE

	4.1	 	Continuing obligations

	 	 	The provisions of the Original Facility Agreement and the other Finance Documents
shall, save as amended by this Agreement, continue in full force and effect.

	4.2	 	Further assurance

	 	 	The Borrower shall, at the reasonable request of the Agent and at its own expense, do
all such acts and things necessary to give effect to the amendments effected or to be
effected pursuant to this Agreement.

	5.	 	ACKNOWLEDGEMENT OF SATISFACTION OF CERTAIN CONDITIONS SUBSEQUENT

	 	 	The Agent confirms that the Conditions Subsequent set out in paragraphs 1 and 2 of
Schedule 13 (Conditions Subsequent) of the Restated Agreement have been satisfied.
	 
	6.	 	 RELEASE OF FAR EAST SHARE CHARGE
	 
	 	 	The Lenders hereby instruct the Security Trustee to, and the Security Trustee shall,
release the Security constituted by the Far East Share Charge (as the same is or may be
amended and varied from time to time) in full at Share Exchange Closing.

	7.	 	TERMINATION OF AMENDMENT AND RESTATEMENT AGREEMENT DATED 6 JUNE 2008

	 	 	The parties to this Agreement agree that the amendments to the Original Facility
Agreement contemplated by the first amendment and restatement agreement dated 6 June 2008
between the parties hereto (the “Original Amendment Agreement”) did not become effective
because all of the conditions precedent set out Schedule 1 (Conditions Precedent) thereto
were not received by the Agent. As such, the parties to this Agreement agree that the
Original Amendment Agreement and all terms and conditions thereof shall be terminated with
effect from the date of this Agreement.

	8.	 	WAIVER OF SUBORDINATION AND REPAYMENT OF SHAREHOLDER LOANS

	(a)	 	If the Agent notifies the Borrower in writing that it has received a legal opinion in or
substantially in the form of the draft set out in Schedule 3 (Form of PRC Legal Opinion) or
otherwise in form and substance satisfactory to the Agent, opining that the steps set out in
paragraphs (i) and (ii) below are not contrary to the laws of the People’s Republic of China
or any regulation of any governmental authority of the People’s Republic of China then,
notwithstanding:

	 	(i)	 	the terms of any Subordination Agreement, the Borrower may transfer its
rights and obligations under the ZR Loan to Far East (the “Transferred ZR Loan”)
in exchange for Far East assuming a debt (the “Interim Loan”) of the same amount
and on the same terms as the ZR Loan to the Borrower, provided that the Borrower
and Far East shall agree that part of the Interim

- 3 -

 

	 	 	 	Loan shall be used to set-off the outstanding First MIE Loan in full and
further provided that Far East shall use part of the Transferred ZR Loan to
set-off the outstanding Far East Loan in full; and
	 
	 	(ii)	 	the terms of the Borrower Debenture, the Borrower may forgive or write-off
the Interim Loan by an amount of up to $20,000,000 (or its equivalent in RMB),

	 	 	provided that if the Agent requires, the Borrower shall procure that ZR enters into a
guarantee (the “ZR Guarantee”) in favour of the Borrower in or substantially in the form
set out in Schedule 4 (Form of ZR Guarantee) guaranteeing the due and punctual payment by
Far East of all amounts outstanding from Far East under the Interim Loan from time to time
and further provided that upon the entry into of the ZR Guarantee, the Borrower shall enter
into an assignment in favour of the Security Trustee of the ZR Guarantee and Borrower’s
rights thereunder, in or substantially in the form set out in Schedule 5 (Form of
Assignment of ZR Guarantee).

	(b)	 	Notwithstanding the terms of the Borrower Debenture, the Borrower may forgive or write-off
any outstanding amount of the Interim Loan by way of deemed dividend distribution or
otherwise to the extent and in the amount of any subscription monies received by the Borrower
from third parties in connection with any issuance and allotment of shares in the Borrower to
such third parties.

	9.	 	WRITE-OFF OF SPDB-ZR LOAN
	 
	 	 	The Lenders and the Agent hereby agree and confirm that, notwithstanding any other
term of a Finance Document, the Borrower may write-off the outstanding amount of the SPDB-ZR
Loan pledged in the SPDB-ZR Loan Account and, following such a write-off, Far East may
forgive or write-off the Second MIE Loan.
	 
	10.	 	MISCELLANEOUS
	 
	10.1	 	Incorporation of terms
	 
	 	 	The provisions of Clause 43 (Notices), Clause 45 (Partial Invalidity), Clause 46
(Remedies and waivers) and Clause 50 (Enforcement) of the Original Facility Agreement shall
be incorporated into this Agreement as if set out in full in this Agreement and as if
references in those clauses to “this Agreement” or “the Finance Documents” are references
to this Agreement.
	 
	10.2	 	Counterparts
	 
	 	 	This Agreement may be executed in any number of counterparts, and this has the same effect
as if the signatures on the counterparts were on a single copy of this Agreement.
	 
	11.	 	GOVERNING LAW
	 
	 	 	This Agreement and all non-contractual obligations arising out of or in connection
with it are governed by English law.

- 4 -

 

This Agreement has been entered into on the date stated at the beginning of this Agreement.

- 5 -

 

SCHEDULE 1

Conditions Precedent

	1.	 	The Borrower

	 	(a)	 	A copy of the constitutional documents of the Borrower, comprising:

	 	(i)	 	its certificate of incorporation and any certificate(s)
of incorporations on change of name;
	 
	 	(ii)	 	its current memorandum and articles of association;
	 
	 	(iii)	 	its current register of directors;
	 
	 	(iv)	 	its current register of members;
	 
	 	(v)	 	its current register of mortgages and charges (if any),

	 		 	or a certificate of a director of the Borrower certifying that the constitutional
documents previously delivered to the Agent for the purposes of the Original
Facility Agreement have not been amended and remain in full force and effect.
	 
	 	(b)	 	A certificate of good standing of the Borrower.
	 
	 	(c)	 	A copy of a resolution of the board of directors or other governing body of the
Borrower:

	 	(i)	 	approving the terms of, and the transactions
contemplated by, this Agreement and resolving that it execute this Agreement;
and
	 
	 	(ii)	 	authorising a specified person or persons to execute this
Agreement on its behalf.

	 	(d)	 	A specimen of the signature of each person authorised by the resolution
referred to in paragraph (c) above.
	 
	 	(e)	 	A certificate of a director or secretary or chief financial officer (if
authorised by the directors) of the Borrower certifying that each copy document
relating to it specified in this Schedule 1 is correct, complete and in full force and
effect as at a date no earlier than the date of this Agreement.

	2.	 	MIH

	 	(a)	 	A copy of the constitutional documents of MIH, comprising:

	 	(i)	 	its certificate of incorporation and any certificate(s) of
incorporations on change of name;

- 6 -

 

	 	(ii)	 	its current memorandum and articles of association;
	 
	 	(iii)	 	its current register of directors;
	 
	 	(iv)	 	its current register of members; and
	 
	 	(v)	 	its current register of mortgages and charges (if any).

	 	(b)	 	A certificate of good standing of MIH.
	 
	 	(c)	 	A copy of a resolution of the board of directors or other governing body of
MIH:

	 	(i)	 	approving the terms of, and the transactions contemplated
by, this Agreement and resolving that it execute the Finance Documents to
which it is party; and
	 
	 	(ii)	 	authorising a specified person or persons to execute the
Finance Documents to which it is party on its behalf.

	 	(d)	 	A specimen of the signature of each person authorised by the resolution
referred to in paragraph (c) above.
	 
	 	(e)	 	A certificate of a director or secretary or chief financial officer (if
authorised by the directors) of MIH certifying that each copy document relating to it
specified in this Schedule 1 is correct, complete and in full force and effect as at a
date no earlier than the date of this Agreement.

	3.	 	Legal Opinions

	 	(a)	 	A legal opinion of Clifford Chance Wong Pte Ltd, legal advisers to the Lenders
as to matters of English law.
	 
	 	(b)	 	A legal opinion of Walkers, legal advisers to the Lenders as to matters of
Cayman Islands law.

	4.	 	Other documents and evidence

	 	(a)	 	The First MIH Share Charge, duly executed by MIH and the Security Trustee.
	 
	 	(b)	 	The Second MIH Share Charge, duly executed by MIH and the Security Trustee.
	 
	 	(c)	 	A copy of any other Authorisation or other document, opinion or assurance which
the Agent considers to be necessary or desirable (if it has notified the Borrower
accordingly) in connection with the entry into and performance of the transactions
contemplated by this Agreement or for the validity and enforceability of this
Agreement.

- 7 -

 

SCHEDULE 2

Restated Agreement

- 8 -

 

SCHEDULE 3

Form of PRC Legal Opinion

- 9 -

 

SCHEDULE 4

Form of ZR Guarantee

- 10 -

 

SCHEDULE 5

 Form of Assignment of ZR Guarantee

- 11 -

 

MI ENERGY CORPORATION

NEW FIRST AMENDMENT AND RESTATEMENT AGREEMENT TO

$150,000,000 BORROWING BASE FACILITY AGREEMENT

	 	 	SIGNATURES

The Borrower

MI ENERGY CORPORATION

By:

The Agent

STANDARD BANK ASIA LIMITED

By:

The Arranger

STANDARD BANK ASIA LIMITED

By:

The Security Trustee

STANDARD BANK ASIA LIMITED

By:

The Technical Bank

STANDARD BANK ASIA LIMITED

By:

The Offshore Account Bank

STANDARD BANK PLC

By:

 

MI ENERGY CORPORATION

NEW FIRST AMENDMENT AND RESTATEMENT AGREEMENT TO

$150,000,000 BORROWING BASE FACILITY AGREEMENT

The Lenders

STANDARD BANK PLC

By:

The Hedge Counterparties

STANDARD BANK PLC

By:

 

			
	 	 	 
	CLIFFORD
	 	CLIFFORD CHANCE WONG PTE LTD
	 	 	 
	CHANCE	 	 
	 	 	 
	WONG	 	 

Up to $150,000,000

BORROWING BASE FACILITY AGREEMENT

dated 29 October 2007

amended pursuant to a waiver and amendment letter dated 23 November 2007

amended and restated as at the  First Effective Date

for

MI ENERGY CORPORATION

arranged by

STANDARD BANK ASIA LIMITED

with

STANDARD BANK ASIA LIMITED

acting as Agent, Security Trustee and

Technical Bank

and

STANDARD BANK PLC

acting as Offshore Account Bank

 

BORROWING BASE FACILITY AGREEMENT

 

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page	 
	1. Definitions And Interpretation 
	 	 	1	 
	2. The Facility 
	 	 	27	 
	3. Purpose 
	 	 	27	 
	4. Conditions Of Utilisation 
	 	 	29	 
	5. Borrowing Base Assets 
	 	 	30	 
	6. Borrowing Base Amount 
	 	 	32	 
	7. Utilisation Of Facility 
	 	 	35	 
	8. Repayment 
	 	 	37	 
	9. Prepayment And Cancellation 
	 	 	38	 
	10. Interest 
	 	 	40	 
	11. Interest Periods 
	 	 	41	 
	12. Changes To The Calculation Of Interest 
	 	 	41	 
	13. Fees 
	 	 	42	 
	14. Tax Gross Up And Indemnities 
	 	 	44	 
	15. Increased Costs 
	 	 	47	 
	16. Other Indemnities 
	 	 	48	 
	17. Mitigation By The Lenders 
	 	 	50	 
	18. Costs And Expenses 
	 	 	50	 
	19. Representations 
	 	 	52	 
	20. Information Undertakings 
	 	 	57	 
	21. Financial Covenants 
	 	 	60	 
	22. General Undertakings 
	 	 	61	 
	23. Events Of Default 
	 	 	70	 
	24. Changes To The Lenders 
	 	 	76	 
	25. Changes To The Hedge Counterparties 
	 	 	79	 
	26. Changes To The Borrower 
	 	 	79	 
	27. The Agent, The Arranger And The Technical Bank 
	 	 	80	 
	28. The Offshore Account Bank 
	 	 	85	 
	29. The Security Trustee 
	 	 	88	 
	30. Change Of Security Trustee And Delegation 
	 	 	94	 
	31. Indemnities And Information 
	 	 	96	 
	32. Security And Priority 
	 	 	98	 
	33. Hedge Counterparties: Rights And Obligations 
	 	 	99	 
	34. Entitlement To Enforce 
	 	 	100	 

 

 

	 	 	 	 	 
	Clause	 	Page	 
	35. Effect Of Insolvency Event 
	 	 	100	 
	36. Turnover Of Receipts 
	 	 	102	 
	37. Sharing 
	 	 	103	 
	38. Enforcement Of Security 
	 	 	104	 
	39. Disposals And Claims 
	 	 	104	 
	40. Application Of Proceeds 
	 	 	105	 
	41. Payment Mechanics 
	 	 	108	 
	42. Set-Off 
	 	 	110	 
	43. Notices 
	 	 	110	 
	44. Calculations And Certificates 
	 	 	112	 
	45. Partial Invalidity 
	 	 	112	 
	46. Remedies And Waivers 
	 	 	113	 
	47. Amendments And Waivers 
	 	 	113	 
	48. Counterparts 
	 	 	114	 
	49. Governing Law 
	 	 	115	 
	50. Enforcement 
	 	 	115	 
	Schedule 1 The Original Lenders 
	 	 	116	 
	Schedule 2 Conditions Precedent 
	 	 	117	 
	Schedule 3 Requests 
	 	 	121	 
	Part 1 Form Of Utilisation Request 
	 	 	121	 
	Part 2 Form Of Selection Notice 
	 	 	122	 
	Schedule 4 Form Of Transfer Certificate 
	 	 	123	 
	Schedule 5 Form Of Accession Undertaking 
	 	 	125	 
	Schedule 6 Existing Security 
	 	 	127	 
	Schedule 7 Timetables 
	 	 	128	 
	Schedule 8 The Accounts 
	 	 	129	 
	Schedule 9 Form Of Subordination Agreement 
	 	 	136	 
	Schedule 10 Hedging 
	 	 	152	 
	Schedule 11 Operating Budgets 
	 	 	153	 
	Schedule 12 Existing Financial Indebtedness 
	 	 	154	 
	Schedule 13 Conditions Subsequent 
	 	 	155	 
	Schedule 14 Insurance 
	 	 	156	 
	Schedule 15 Existing Trade Credit 
	 	 	172	 

 

 

THIS AGREEMENT is dated 29 October 2007, was amended pursuant to a waiver and amendment agreement
dated 23 November 2007, is amended and restated as of the First Effective Date and is made between:

	(1)	 	MI ENERGY CORPORATION, a corporation organised and existing under the laws of the Cayman
Islands and having an office at: c/o M&C Corporate Services Limited, P.O. Box 309 GT, Ugland
House, South Church Street, George Town, Grand Cayman, Cayman Islands (the “Borrower”);

	(2)	 	STANDARD BANK ASIA LIMITED as arranger (the “Arranger”);

	(3)	 	THE FINANCIAL INSTITUTIONS listed in Schedule 1 (The Original Lenders) as original lenders
(the “Original Lenders”);

	(4)	 	STANDARD BANK ASIA LIMITED as agent of the other Finance Parties (the “Agent”);

	(5)	 	STANDARD BANK ASIA LIMITED as security trustee for the other Secured Parties (the “Security
Trustee”);

	(6)	 	STANDARD BANK ASIA LIMITED as technical bank (the
“Technical Bank”); and

	(7)	 	STANDARD BANK PLC as offshore account bank (the
“Offshore Account Bank”).

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

1. DEFINITIONS AND INTERPRETATION

	1.1	 	Definitions

	 	 	In this Agreement:

	 	 	“Accession Undertaking” means an undertaking in substantially the form set out in Schedule 5
(Form of Accession Undertaking).

	 	 	“Account Banks” means the Offshore Account Bank and the Onshore Account Bank.

	 	 	“Accounts” means the Offshore Accounts and the Onshore Accounts.

	 	 	“Accounts Assignment” means the security over accounts agreement relating to the Offshore
Collection Account and the Debt Service Reserve Account to be entered into between the
Borrower and the Security Trustee.

	 	 	“Adverse Variation” means, in relation to the Material Insurances:

	 	(a)	 	any material reductions of amounts or scope of cover;

- 1 -

 

	 	(b)	 	any material increase to levels of deductible or excess or self insurance
arrangements;
	 
	 	(c)	 	any material reduction in the scope of risks insured or to coverage terms, or the inclusion
of new exclusions or exceptions; and
	 
	 	(d)	 	any material reduction in or cancellation, discontinuance, non-renewal or avoidance of any
cover provided under any Material Insurance.

	 	 	“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding Company of
that person or any other Subsidiary of that Holding Company.

	 	 	“Agreed Acquisition” means any acquisition
made by the Borrower with the prior written approval of
the Agent (acting on the instructions of the Majority Lenders).

	 	 	“Asset Life Cover Ratio” means, at any time, the ratio of (a) Discounted Projected Net Cash Flow to
the Reserve Tail Date to (b) the principal amount of all Loans outstanding on the date on which
such ratio is determined.

	 	 	“Assignment of ZR Guarantee” means the assignment by the Borrower of the ZR Guarantee and all its
rights thereunder entered or to be entered into between the Borrower and the Security Trustee.

	 	 	“Assumptions” means the Economic Assumptions and the Technical Assumptions used for the Financial
Model as delivered pursuant to paragraph 5(a) of Schedule 2 (Conditions Precedent) to produce
Financial Projections, as such Assumptions may be changed or subsequently determined pursuant to
Clause 6 (Borrowing Base Amount).

	 	 	“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing,
notarisation or registration.

	 	 	“Available Commitment” means a Lender’s Commitment minus:

	 	(a)	 	the amount of its participation in any outstanding Loans; and

	 	(b)	 	in relation to any proposed Utilisation, the amount of its participation in any Loans that
are due to be made on or before the proposed Utilisation Date.

	 	 	other than that Lender’s participation in any Loans that are due to be repaid or prepaid on or
before the proposed Utilisation Date.
	 
	 	 	“Available Facility” means, from time to time, the lower of (a) the aggregate of the Available
Commitments, (b) the Maximum Facility and (c) the Borrowing Base Amount.
	 
	 	 	“Availability Period” means the period from
and including the date of this Agreement to the date
falling one Month prior to the Termination Date.

	 	 	“barrel” means 42 United States gallons at 60° Fahrenheit.

- 2 -

 

	 	 	“Borrower Debenture” means the debenture creating assignments and fixed and floating charges to be
entered into between the Borrower and the Security Trustee in respect of the assets of the
Borrower described therein.

	 	 	“Borrowing Base Amount” means the amount calculated pursuant to the Financial Model, and
thereafter as determined in accordance with Clause 6 (Borrowing Base Amount), to be equal to the
lower of:

	 	(a)	 	Discounted Projected Net Cash Flow on each Redetermination Date referred to in the Financial
Model to the Reserve Tail Date, divided by 1.60; and

	 	(b)	 	Discounted Projected Net Cash Flow on each Redetermination Date referred to in the Financial
Model to the Scheduled Maturity Date, divided by 1.50.

	 	 	“Borrowing Base Asset” means at any time any Field which qualifies as a Borrowing Base Asset at
such time as determined by reference to Clause 5 (Borrowing Base Assets).

	 	 	“Break Costs” means the amount (if any) by which:

	 	(a)	 	the interest which a Lender should have received for the period from the date of receipt of
all or any part of its participation in a Loan or Unpaid Sum to the last day of the current
Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum
received been paid on the last day of that Interest Period;

	 	 	exceeds:

	 	(b)	 	the amount which that Lender would be able to obtain by placing an amount equal to the
principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant
Interbank Market for a period starting on the Business Day following receipt or recovery and
ending on the last day of the current Interest Period.

	 	 	“Bridge Facility Agreement” means the $20,000,000 bridge facility agreement dated 19 September
2007 and made between the Borrower and Standard Bank Asia Limited.

	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general
business in Hong Kong and Singapore and:

	 	(a)	 	for any day on which payments are to be made in dollars, New York;

	 	(b)	 	for any day on which LIBOR is to be determined, London; and

	 	(c)	 	for any day on which a notice to the Borrower is to be delivered, Beijing.

	 	 	“Calculation Date” means each of 31 March, 30 June, 30 September and 31 December of each calendar
year, provided that if any such date is not a Business Day, the “Calculation Date” shall be the
Business Day immediately preceding such date.

- 3 -

 

	 	 	“Calculation Period” means each period commencing on the day after a Calculation Date and ending on
the immediately following Calculation Date.

	 	 	“Capital Expenditure” means, for the Borrower and for any period, the sum of, without duplication,
all expenditures that are capital in nature made, directly or indirectly, by the Borrower during
such period in connection with the development and/or production of
hydrocarbon reserves or the
acquisition or replacement of plant, equipment and fixed assets or related infrastructure,
including without limitation:

	 	(a)	 	value added or similar Taxes payable by the Borrower in respect of any items referred to in
this definition; and

	 	(b)	 	any other costs and/or expenses which the Agent and the Borrower agree shall be Capital
Expenditure.

	 	 	“Charged Property” means all the assets of the Borrower which from time to time are, or are
expressed to be, the subject of the Transaction Security.

	 	 	“CNPC” means China National Petroleum Corporation.

	 	 	“Commission Accounts” means the Offshore Commission Account and the Onshore Commission Account and
“Commission Account” means any of them.

	 	 	“Commitment” means:

	 	(a)	 	in relation to an Original Lender, the amount set opposite its name under the heading
“Commitment” in Schedule 1 (The Original Lenders) and the amount of any other Commitment
transferred to it under this Agreement; and

	 	(b)	 	in relation to any other Lender, the amount of any Commitment transferred to it under this
Agreement,

	 	 	to the extent not cancelled, reduced or transferred by it under this Agreement.

	 	 	“Commitment Letter” means the letter entered or to be entered into between the Arranger and the
Borrower.

	 	 	“Compensation” means:

	 	(a)	 	all proceeds of insurance claims, insurance premium refunds, returns, ex gratia payments or
otherwise that are payable by insurers and are to be received by the Borrower (net of amounts
which the Borrower must pay to any third party in respect of the relevant claim, and excluding
proceeds from any claims which have been advised to the Agent prior to the date of this
Agreement and which have been included in the Financial Model); and

	 	(b)	 	all proceeds from any other form of loss compensation (including in relation to
expropriation and liquidated damages) paid to the Borrower.

- 4 -

 

	 	 	“Conditions Subsequent” means each of the documents and evidence listed in Schedule 13 (Conditions
Subsequent).

	 	 	“Control” means in respect of a person by another person that that other person has the power to
direct the management and operating and financial policies of such person, whether through the
ownership of voting capital, by contract or otherwise.

	 	 	“Creditors” means the Lenders and the Hedge Counterparties.

	 	 	“Crude Oil Price Assumption” means the assumption as to the crude oil price which is an input to
the Financial Model in producing a Financial Projection.

	 	 	“Daan Field” means the production area forming part of the Daan PSC.

	 	 	“Daan PSC” means the production sharing contract dated 6 December 1997 between Global Oil
Corporation and CNPC and all subsequent amendments, revisions and modifications thereto.

	 	 	“Debt Service” means, in respect of any period, all principal, interest, fees and other amounts
which fall due for payment by the Borrower in respect of any Financial Indebtedness during such
period.

	 	 	“Debt Service Cover Ratio” means, at any time, the ratio of (a) Projected Net Cash Flow in any
Calculation Period plus the balance standing to the credit of the Debt Service Reserve Account at
the start of that Calculation Period to (b) Debt Service in that Calculation Period.

	 	 	“Debt Service Reserve Account” means the account designated as such bearing the account number to
be advised by the Offshore Account Bank to the Borrower in the name of the Borrower opened with
the Offshore Account Bank (as such account may be re-designated, substituted or replaced from time
to time).

	 	 	“Debt Service Reserve Requirement” means at any time on or after the first day of an Interest
Period, all amounts of scheduled principal and interest due and payable or which would be due and
payable by the Borrower under the Finance Documents up to and including:

	 	(a)	 	the date falling six Months after the first day of such Interest Period (calculated by the
Agent in its sole discretion on the basis of LIBOR for a period of six Months beginning on
the first day of such Interest Period); or

	 	(b)	 	(if earlier) the Termination Date.

	 	 	“Default” means an Event of Default or any event or circumstance specified in Clause 23 (Events of
Default) which would (with the expiry of a grace period, the giving of notice, the making of any
determination under the Finance Documents or any combination of any of the foregoing) be an Event
of Default.

- 5 -

 

	 	 	“Delegate” means any delegate, agent,
attorney or co-trustee appointed by the Security Trustee in
accordance with the terms of this Agreement and the relevant Security Documents.

	 	 	“Disclosure Letter” means the letter dated the date of this Agreement from the Borrower to the
Agent disclosing information constituting specifically identified exceptions to the representations
and warranties set out in Clause 19 (Representations).

	 	 	“Discounted Projected Net Cash Flow” means, from the relevant date upon which the calculation is
made to the relevant date to which the calculation is to refer, the aggregate of all Projected Net
Cash Flow arising in such period, discounted annually at the Discount Rate to the date upon which
the calculation is made.

	 	 	“Discount Rate” means, for any calculation period, eight per cent. (8%).

	 	 	“Distribution Account” means the account designated as such bearing the account number to be
advised by the Offshore Account Bank to the Borrower in the name of the Borrower opened with the
Offshore Account Bank (as such account may be redesignated, substituted or replaced from time to
time).

	 	 	“Economic Assumptions” means the Exchange Rate Assumption, the Crude Oil Price Assumption and
assumptions as to interest rates, inflation rates, gas prices, tariffs, tax rates (including
withholding taxes) and any other inputs relating to amounts due under the Finance Documents,
hedging agreements and other agreements under which Financial Indebtedness arises or may arise,
and which are inputs to the Financial Model in producing a Financial Projection.

	 	 	“Enforcement Action” means:

	 	(a)	 	the acceleration of any Liabilities or any declaration that any Liabilities are prematurely
due and payable (other than as a result of it becoming unlawful for a Lender to perform its
obligations under, or of any mandatory prepayment arising under, the Finance Documents) or
payable on demand or the premature termination or close out of any Hedge Liabilities;

	 	(b)	 	the taking of any steps to enforce or require the enforcement of any Transaction Security
(including the crystallisation of any floating charge forming part of the Transaction
Security);

	 	(c)	 	the making of any demand against the Borrower in relation to any guarantee, indemnity or
other assurance against loss in respect of any Liabilities or exercising any right to require
the Borrower to acquire any Liability (including exercising any put or call option against
the Borrower for the redemption or purchase of any Liability);

	 	(d)	 	the exercise of any right of set-off against the Borrower in respect of any Liabilities;

- 6 -

 

	 	(e)	 	the suing for, commencing or joining of any legal or arbitration proceedings
against the Borrower to recover any Liabilities;

	 	(f)	 	the entering into of any composition, assignment or arrangement with the Borrower; or

	 	(g)	 	the petitioning, applying or voting for, or the taking of any steps (including the
appointment of any liquidator, receiver, administrator or similar officer) in relation to
the winding up, dissolution, administration or reorganisation of the Borrower or any
suspension of payments or moratorium of any indebtedness of the Borrower, or any analogous
procedure or step in any jurisdiction.

	 	 	“Environmental Claim” means any claim, proceeding or investigation by any person in respect of
any Environmental Law.

	 	 	“Environmental Law” means any applicable law in any jurisdiction in which the Borrower conducts
business which relates to the pollution or protection of the environment or harm to or the
protection of human health or the health of animals or plants.

	 	 	“Environmental Permits” means any permit, licence, consent, approval and other authorisation and
the filing of any notification, report or assessment required under any Environmental Law for the
operation of the business of the Borrower conducted on or from the properties owned or used by
the Borrower.

	 	 	“Environmental Report” means an environmental report prepared by Environmental Resources
Management (S) Pte Ltd and dated 27 June 2007 relating to the Daan Field, the Miao 3 Field and
the Moliqing Field and addressed to, and/or capable of being relied upon by, the Arranger and the
other Finance Parties.
	 
	 	 	“Equator Principles” means those principles set out in the paper titled “An industry approach for
financial institutions in determining, assessing and managing environmental and social risk in
project financing”, dated July 2006 and developed and adopted by the International Finance
Corporation and other banks and financial institutions, as applicable to the Borrowing Base
Assets from time to time.
	 
	 	 	“Environmental Management Plan” means the environmental management plan prepared by the Borrower
in accordance with the Equator Principles and applicable laws in the People’s Republic of China
in relation to the Borrower’s operations in connection with the Borrowing Base Assets, setting
out:

	 	(a)	 	monitoring and mitigation arrangements;
	 
	 	(b)	 	operational procedures;
	 
	 	(c)	 	management and institutional measures; and

- 7 -

 

	 	(d)	 	a preliminary decommissioning and restoration plan identifying disposal
options for all equipment and materials, including products used and waste generated
onsite,

	 	 	to be implemented by the Borrower in respect of the Borrower’s operations at the Borrowing Base
Assets, incorporating the Equator Principles and all applicable Environmental Laws, as submitted by
the Borrower and approved by the Agent provided that if adherence to any aspect of the Equator
Principles by the Borrower would contravene any applicable law of the People’s Republic of China or
any provision of a PSC, the Environmental Management Plan shall be prepared without regard to that
aspect of the Equator Principles.

	 	 	“Equity” means cash received by the Borrower as the proceeds of subscription for ordinary shares,
convertible preference shares or Subordinated Indebtedness.

	 	 	“Event of Default” means any event or circumstance specified as such in Clause 23 (Events of
Default).

	 	 	“Exchange Rate Assumption” means the assumption as to the exchange rate which is an input to the
Financial Model in producing a Financial Projection.

	 	 	“Existing Financial Indebtedness” means any Financial Indebtedness which exists at the date of
this Agreement pursuant to the agreements listed in Schedule 12 (Existing Financial Indebtedness).

	 	 	“Existing Security” means any Security which exists at the date of this Agreement pursuant to the
agreements listed in Schedule 6 (Existing Security) except to the extent the principal amount
secured by that Security exceeds the amount stated in that Schedule.

	 	 	“Existing Trade Credit” means Financial Indebtedness owing by the Borrower to each of the parties
and in the amounts more particularly detailed in Schedule 15 (Existing Trade Credit).

	 	 	“Facility” means the revolving loan facility made available under this Agreement as described in
Clause 2.1 (The Facility).

	 	 	“Facility Office” means the office or offices notified by a Lender to the Agent in writing on or
before the date it becomes a Lender (or, following that date, by not less than five Business Days’
written notice) as the office or offices through which it will perform its obligations under this
Agreement.

	 	 	“Far East” means Far East Energy Ltd., a company organised under the laws of Hong Kong.
	 
	 	 	“Far East Loan” means the loan, in an amount not exceeding $51,959,559.24, made by ZR to Far East
and documented pursuant to a repayment agreement dated 19 September 2007.

- 8 -

 

	 	 	“Far East Share Charge” means the charge over shares to be entered into between Far East and the
Security Trustee in relation to 67% of the shares in the capital of the Borrower, which Far East
will own up to Share Exchange Closing.

	 	 	“Fee Letter” means any letter or letters entered or to be entered into between the Arranger and
the Borrower (or the Agent or Security Trustee and the Borrower) setting out any of the fees
referred to in Clause 13 (Fees).

	 	 	“Field” means any field bearing hydrocarbons (including oil, gas, condensate, natural gas liquids
and all components of any of them) which the Borrower has a concession to exploit from the
applicable governmental authority.

	 	 	“Finance Documents” means each of this Agreement, the Security Documents, the Onshore Account
Agreement, the Commitment Letter, any Fee Letter, any Subordination Agreement, any other document
designated as such by the Agent and the Borrower and any document that amends, supplements,
modifies or waives any provision of any of the foregoing.

	 	 	“Finance Party” means each of the Agent, the Security Trustee, the Offshore Account Bank, the
Technical Bank, the Arranger and each Lender.

	 	 	“Financial Indebtedness” means any indebtedness for or in respect of:

	 	(a)	 	moneys borrowed;

	 	(b)	 	any amount raised by acceptance under any acceptance credit facility or dematerialised
equivalent;

	 	(c)	 	any amount raised pursuant to any note purchase facility or
the issue of bonds, notes,
debentures, loan stock or any similar instrument;

	 	(d)	 	the amount of any liability in respect of any lease or hire purchase contract which would,
in accordance with IFRS, be treated as a finance or capital lease;

	 	(e)	 	receivables sold or discounted (other than any receivables to the extent they are sold on a
non-recourse basis);

	 	(f)	 	any amount raised under any other transaction (including any forward sale or purchase
agreement) having the commercial effect of a borrowing;

	 	(g)	 	any derivative transaction entered into in connection with protection against or benefit from
fluctuation in any rate or price (and, when calculating the value of any derivative
transaction, only the marked to market value shall be taken into account);
	 
	 	(h)	 	any counter-indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument issued by a bank or
financial institution;

- 9 -

 

	 	(i)	 	any amount raised by the issue of shares which are unconditionally redeemable
at the option of the holder (or in respect of which all conditions for redemption have
been met) before the Scheduled Maturity Date; and

	 	(j)	 	(without double counting) the amount of any liability in respect of any
guarantee or indemnity for any of the items referred to in paragraphs (a) to (j) above.

	 	 	“Financial Model” means the financial model computer programme referred to in paragraph 5(a) of
Schedule 2 (Conditions Precedent) having the capacity to:

	 	(a)	 	input all Assumptions, in order to

	 	(b)	 	produce the Financial Projections required pursuant to this Agreement,
	 
	 	each within the time for delivery of each Financial Projection required under this Agreement, as
the same may be modified from time to time as permitted by Clause 6.4 (Modification of Financial
Model).

	 	 	“Financial Projection” means a financial projection generated by running the Financial Model in
accordance with Clause 6 (Borrowing Base Amount) and which will set out, inter alia:

	 	(a)	 	the Borrowing Base Amount as at the relevant Redetermination Date;

	 	(b)	 	the Reserve Tail Date;

	 	(c)	 	a statement of the remaining reserves in respect of each Borrowing Base Asset, based on the
most recent Independent Reserves Report or Lenders’ Technical Report in relation to such
Borrowing Base Asset;

	 	(d)	 	the Projected Payments;

	 	(e)	 	the Discounted Projected Net Cash Flow in respect of the period from the relevant
Redetermination Date to:

	 	(i)	 	the Reserve Tail Date; and;
	 
	 	(ii)	 	the Scheduled Maturity Date;

	 	(f)	 	the Asset Life Cover Ratio for the next Calculation Period; and

	 	(g)	 	the Debt Service Cover Ratio for the next Calculation Period.

	 	 	“First Amendment and Restatement Agreement” means the new first amendment
and restatement agreement dated                      January 2009 between the parties hereto which
amended and restated this Agreement with effect from the First Effective Date.
	 
	 	 	“First Effective Date” has the meaning given in the First Amendment and Restatement Agreement.

- 10 -

 

	 	 	“First MIE Loan” means the loan, in an amount not exceeding $42,470,741.19, made by Far East to
the Borrower and documented pursuant to a repayment agreement dated 19 September 2007.

	 	 	“First MIH Share Charge” means the charge over shares to be entered into between MIH and the
Security Trustee in relation to 67% of the shares in the capital of the Borrower, which MIH will
own upon and from Share Exchange Closing.

	 	 	“Half-year Date” means each of 30 June and 31 December of each calendar year, provided that if any
such date is not a Business Day, the “Half-year Date” shall be the Business Day immediately
preceding such date.

	 	 	“Hedge Agreement” means an agreement on the terms of the International Swaps and Derivatives
Association, Inc., Master Agreement, together with any schedule thereto and any transaction
confirmations thereunder, with such amendments as are agreed between the Borrower and the Hedge
Counterparty that are consistent with the requirements of Schedule 10 (Hedging) or as are otherwise
reasonably acceptable to the Agent, or any other format reasonably acceptable to the Agent.

	 	 	“Hedge Counterparties” means each financial institution named on the signing pages as a Hedge
Counterparty and any financial institution which becomes a Hedge Counterparty in accordance with
the terms of Clause 33 (Hedge Counterparties: Rights and Obligations) or Clause 25 (Change of
Hedge Counterparties).

	 	 	“Hedge Liabilities” means the Liabilities owed by the Borrower to the Hedge Counterparties under
or in connection with the Hedge Agreements.

	 	 	“Hedging Costs” means any amounts due and payable to any Hedge Counterparty under any Hedge
Agreement during the relevant period.

	 	 	“Hedging Transaction” means any hedging transaction entered into by the Borrower in connection
with protection against or benefit from fluctuation in any interest rate, currency exchange rate
and/or commodity price.

	 	 	“Holding Company” means, in relation to a company or corporation, any other company or corporation
in respect of which it is a Subsidiary.

	 	 	“IFRS” means international accounting standards within the meaning of IAS Regulation 1606 / 2002
to the extent applicable to the relevant financial statements.

	 	 	“Independent Engineer” means Gaffney, Cline & Associates or any other independent petroleum
engineering consultant approved by the Simple Majority Lenders in consultation with the Borrower.
	 
	 	 	“Independent Reserves Report” means a reserves report, prepared by the Independent Engineer, which
includes estimated oil and gas Proved Reserves, Probable Reserves, PP Reserves and PU Reserves
arising to the Borrower from the Borrowing Base Assets, production profiles and all costs related
to the development and operations at the Borrowing Base Assets.

- 11 -

 

	 	 	“Insolvency Event” means, in relation to the Borrower:

	 	(a)	 	any resolution is passed or order made for the winding up, dissolution, administration or
reorganisation of the Borrower or an administrator is appointed to the Borrower;

	 	(b)	 	any composition, assignment or arrangement is made with any of its creditors;

	 	(c)	 	the appointment of any liquidator (other than in respect of a solvent liquidation to which
the Majority Lenders have consented), receiver, administrator, administrative receiver,
compulsory manager or other similar officer in respect of the Borrower or any of its assets;
or

	 	(d)	 	any analogous procedure or step is taken in any jurisdiction.

	 	 	“Insurance Adviser” means Jardine Lloyd Thompson or any other independent insurance consultant
approved by the Majority Lenders.

	 	 	“Interest Period” means, in relation to a Loan, each period determined in accordance with Clause
11 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with
Clause 10.3 (Default interest).

	 	 	“Interim Loan” has the meaning given in the First Amendment and Restatement Agreement.

	 	 	“LCCU” means Liaoyuan City Credit Union Stock Co., Ltd.

	 	 	“Lender” means:

	 	(a)	 	each Original Lender; and

	 	(b)	 	each bank, financial institution, trust, fund or other entity which has become a Lender in
accordance with Clause 24 (Changes to the Lenders),

	 	 	which in each case has not ceased to be a Lender in
accordance with the terms of this Agreement.
	 
	 	 	“Lenders’ Technical Report” means a report prepared by the Independent Engineer, which includes
estimated oil and gas Proved Reserves, Probable Reserves, PP Reserves and PU Reserves arising to
the Borrower from the Borrowing Base Assets and projections of production profiles and all costs
related to the development and operation of the Borrowing Base Assets.
	 
	 	 	“Liabilities” means all liabilities for the payment of money owed by the Borrower to the Finance
Parties under or pursuant to the Finance Documents or any Hedge Counterparty under or pursuant to
a Hedge Agreement, whether in respect of principal, interest or otherwise, whether actual or
contingent, whether owed jointly or severally and whether owed as principal or surety or in any
other capacity.

- 12 -

 

	 	 	“LIBOR” means, in relation to any Loan, and
subject to Clause 12.2 (Market Disruption):

	 	(a)	 	the applicable Screen Rate; or

	 	(b)	 	(if no Screen Rate is available for dollars for the Interest Period of that Loan) the
arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the
Agent at its request quoted by the Reference Banks to leading banks in the London interbank
market,

	 	 	as of the Specified Time on the Quotation Day for the offering of deposits in dollars and for a
period comparable to the Interest Period for that Loan.

	 	 	“Loan” means a loan made or to be made under the Facility or the principal amount outstanding for
the time being of that loan.

	 	 	“Majority Lenders” means:

	 	(a)	 	if there are no Loans then outstanding, a Lender or Lenders whose Commitments aggregate more
than sixty seven per cent. (67%) of the Total Commitments (or, if the Total Commitments have
been reduced to zero, aggregate more than sixty seven per cent. (67%) of the Total
Commitments immediately prior to the reduction); or

	 	(b)	 	at any other time, a Lender or Lenders whose participations in the Loans then outstanding
aggregate more than sixty seven per cent. (67%) of all the Loans then outstanding.

	 	 	“Margin” means:

	 	(a)	 	for each Interest Period which began prior to the First Effective Date, two point seven five
per cent (2.75%) per annum; and

	 	(b)	 	for each Interest Period which begins on or after the First Effective Date, five point seven
five per cent (5.75%) per annum.

	 	 	“Material Adverse Effect” means a material adverse effect on:

	 	(a)	 	the business, operations, property or financial condition of the Borrower;

	 	(b)	 	the ability of the Borrower to perform its material obligations under any Finance Document
to which it is a party; or

	 	(c)	 	the validity or enforceability of any Transaction Document or the rights or remedies of any
Finance Party under any Finance Document or the rights or remedies of the Borrower under any
Project Document.

	 	 	“Material Insurances” has the meaning given
in Clause 22.18 (Insurance).

- 13 -

 

	 	 	“Maximum Facility” means $150,000,000, reducing to the following amounts on the following Repayment
Dates:

	 	 	 	 	 	 	 	 	 
	Amount ($)	 	 	 	 	Repayment Date	 
	 	142,000,000	 	 	 
	 	9th
	 	134,000,000	 	 	 
	 	10th
	 	126,000,000	 	 	 
	 	11th
	 	118,000,000	 	 	 
	 	12th
	 	110,000,000	 	 	 
	 	13th
	 	102,000,000	 	 	 
	 	14th
	 	94,000,000	 	 	 
	 	15th
	 	86,000,000	 	 	 
	 	16th
	 	78,000,000	 	 	 
	 	17th
	 	70,000,000	 	 	 
	 	18th
	 	62,000,000	 	 	 
	 	19th
	 	54,000,000	 	 	 
	 	20th
	 	46,000,000	 	 	 
	 	21st
	 	38,000,000	 	 	 
	 	22nd
	 	30,000,000	 	 	 
	 	23rd
	 	0	 	 	 
	 	24th

	 	 	“Miao 3 Field” means the production area forming part of the Miao 3 PSC.
	 
	 	 	“Miao 3 PSC” means the production sharing contract dated 16 December 1997 between Global Oil
Corporation and CNPC and all subsequent amendments, revisions and modifications thereto.

	 	 	“Microbes” means Microbes, Inc.
	 
	 	 	“MIE SPA” means the shares purchase agreement entered or to be entered into between Standard Bank
PLC, Zhang Ruilin, Zhao Jiangwei, Shang Zhiguo and Far East in relation to the sale by Far East and
the purchase by Standard Bank PLC of 197,049 ordinary shares in the capital of MIH.

- 14 -

 

	 	 	“MIH” means MIE Holdings Corporation, an exempted company incorporated with limited liability in
the Cayman Islands.

	 	 	“Moliqing Field” means the production area forming part of the Moliqing PSC.

	 	 	“Moliqing PSC” means the production sharing contract dated 25 September 1998 between Global Oil
Corporation and CNPC and all subsequent amendments, revisions and modifications thereto.

	 	 	“Month” means a period starting on one day in a calendar month and ending on the numerically
corresponding day in the next calendar month, except that:

	 	(a)	 	if the numerically corresponding day is not a Business Day, that period shall end on the
next Business Day in that calendar month in which that period is to end if there is one, or
if there is not, on the immediately preceding Business Day; and

	 	(b)	 	if there is no numerically corresponding day in the calendar month in which that period is
to end, that period shall end on the last Business Day in that calendar month,

	 	 	and “Monthly” will be construed accordingly. The above rules will only apply to the last Month of
any period.

	 	 	“Obligors” means the Borrower, Far East and (from and after Share Exchange Closing), MIH.

	 	 	“Offshore Accounts” means:

	 	(a)	 	the Offshore Collection Account;

	 	(b)	 	the Debt Service Reserve Account;

	 	(c)	 	any Offshore Commission Account;

	 	(d)	 	the Distribution Account; and

	 	(e)	 	any other operating or office account denominated in dollars (or any other currency freely
convertible into dollars as may be agreed with the Agent from time to time) opened or
maintained by the Borrower outside the People’s Republic of China, used for the purpose of
paying operating costs, wages and other general administrative costs and expenses included in
the then current Operating Budget, in respect of which the account number and account bank
have at any time been notified in writing to the Agent.

	 	 	“Offshore Collection Account” means the
account designated as such bearing the account number to be
advised by the Offshore Account Bank to the Agent and the Borrower in the name of the Borrower
opened with the Offshore Account Bank (as such account may be re-designated, substituted or
replaced from time to time).

- 15 -

 

	 	 	“Offshore Commission Account” has the meaning given to such term in Schedule 8 (The Accounts).

	 	 	“Onshore Account Agreement” means the onshore accounts agreement entered or to be entered into
between the Borrower, the Agent and the Onshore Account Bank.

	 	 	“Onshore Account Bank” means the bank or financial institution notified by the Borrower to the
Agent as being the “Onshore Account Bank” and agreed to by the Agent.

	 	 	“Onshore Accounts” means:

	 	(a)	 	the Onshore Collection Account;

	 	(b)	 	the Onshore Payments Account;

	 	(c)	 	any Onshore Commission Account;

	 	(d)	 	the SPDB-ZR Loan Account; and

	 	(e)	 	any other operating or office account denominated in RMB opened or maintained by the Borrower
with a domestic bank in the People’s Republic of China, used for the purpose of paying
operating costs, wages and other general administrative costs and expenses included in the
then current Operating Budget, in respect of which the account number and account bank have at
any time been notified in writing to the Agent.

	 	 	“Onshore Collection Account” means the account designated as such bearing the account number to be
advised by the Onshore Account Bank to the Agent and the Borrower in the name of the Borrower
opened with the Onshore Account Bank (as such account may be re-designated, substituted or
replaced from time to time).

	 	 	“Onshore Commission Account” has the meaning
given to such term in Schedule 8 (The Accounts).

	 	 	“Onshore Payments Account” means the account
numbered 18100018600002717 in the name of the Borrower
and maintained with Citic Ka Wah Bank Limited, Beijing Branch, into which Permitted Payments may
be paid from time to time in accordance with Schedule 8 (The Accounts) (as such account may be
re-designated, substituted or replaced from time to time with the consent of the Agent).

	 	 	“Operating Budget” means, for any year, the operating budget agreed or determined in accordance
with Schedule 11 (Operating Budgets).

	 	 	“Operational Lock-Up Period” means any
period during which the aggregate amounts of the Loans
exceed the Borrowing Base Amount.
	 
	 	 	“Original Financial Statements” means the unaudited financial statements of the Borrower for each
of the financial years ended 31 December 2004, 31 December 2005 and 31 December 2006.

- 16 -

 

	 	 	“Party” means a party to this Agreement.

	 	 	“Payment Instructions” means a payment instruction from the Borrower to PetroChina in relation to
the Borrower’s entitlement under a PSC in an agreed form.

	 	 	“PD Reserves” means reserves classified as proved developed reserves in an Independent Reserves
Report or a Lenders’ Technical Report in accordance with the principles approved by the Society of
Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists
and the Society of Professional Evaluation Engineers as published in March 2007.

	 	 	“Permitted Financial Indebtedness” means any of the following:

	 	(a)	 	Financial Indebtedness under the Finance Documents;

	 	(b)	 	Financial Indebtedness under the Bridge Facility Agreement provided that such Financial
Indebtedness is repaid in full on the first Utilisation Date;

	 	(c)	 	Subordinated Indebtedness;

	 	(d)	 	Existing Financial Indebtedness, provided that all Existing Financial Indebtedness is repaid
in full on or before the first Utilisation Date;

	 	(e)	 	Existing Trade Credit;

	 	(f)	 	trade credit obtained in the ordinary course of business on an arm’s length basis and on
normal commercial terms; and

	 	(g)	 	Financial Indebtedness in respect of bank guarantees, performance bonds, letters of credit
or standby letters of credit which have been taken into account in the most recent Financial
Projection, in each case arising in the ordinary course of business of the Borrower not
exceeding an aggregate in any financial year of $5,000,000 or its equivalent in other
currencies.

	 	 	“Permitted Loans” means:

	 	(a)	 	the ZR Loan; and

	 	(b)	 	loans made by the Borrower with funds which have been withdrawn from the Distribution
Account.

	 	 	“Permitted Payments” means (without double counting) all costs, liabilities, expenses and payments
incurred or required to be paid by the Borrower during the relevant period including:

	 	(a)	 	transportation tariffs and sales and marketing costs (if any);
	 
	 	(b)	 	other operating costs, whether fixed or variable;
	 
	 	(c)	 	Taxes and royalties;

- 17 -

 

	 	(d)	 	payments due to Microbes under or pursuant to the SPA;

	 	(e)	 	Capital Expenditure and maintenance costs and expenditure; and

	 	(f)	 	other general and administrative costs and expenses.

	 	 	“PetroChina” means PetroChina Company Limited.

	 	 	“Probable Reserves” means hydrocarbon reserves classified as such (in an Independent Reserves
Report or a Lenders’ Technical Report) in accordance with the principles approved by the Society
of Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum
Geologists and the Society of Professional Evaluation Engineers as published in March 2007.

	 	 	“Project Documents” means:

	 	(a)	 	the PSCs;

	 	(b)	 	crude oil sales contract relating to the Daan Field, Miao 3 Field and Moliqing Field dated
28 December 2000 by and between Microbes and China National Petroleum Sales Corporation and
its amendment dated 5 March 2004 by and among PetroChina, China National Petroleum Sales
Corporation, Microbes, INC. and the Borrower;

	 	(c)	 	Cooperation Agreement dated 30 June 2005 by and between Far East, Fullfame Enterprises
Limited and the Borrower;

	 	(d)	 	any material contract for drilling, operation or maintenance relating to the Borrowing Base
Assets to which the Borrower is a party and in respect of which the contract price exceeds
$2,500,000;

	 	(e)	 	any insurance policy, slip, certificate or other insurance document relating to the Material
Insurances;

	 	(f)	 	the Termination Agreement (if any);

	 	(g)	 	any other document designated as such by the Agent and the Borrower; and

	 	(h)	 	any document that amends, supplements, modifies or waives any provision of
any of the foregoing.

	 	 	“Projected Net Cash Flow” means, in respect of each relevant period for which it is to be
calculated, Revenues during such period minus Projected Payments during such period.
	 
	 	 	“Projected Payments” means (without double counting) all costs, liabilities, expenses and payments
projected to be incurred or required to be paid by the Borrower during the relevant period which
are included in the then current Financial Projection including, without limitation:

	 	(a)	 	transportation tariffs and sales and marketing costs (if any);

- 18 -

 

	 	(b)	 	Capital Expenditure and maintenance costs and expenditure;

	 	(c)	 	other operating costs, whether fixed or variable;

	 	(d)	 	general and administrative costs and expenses;

	 	(e)	 	Hedging Costs; and

	 	(f)	 	Taxes and royalties,

	 	 	but excluding amounts of principal, interest and fees due and payable by the Borrower under the
Finance Documents.

	 	 	“Proved Reserves” means hydrocarbon reserves classified as such (in an Independent Reserves Report
or a Lenders’ Technical Report) in accordance with the principles approved by the Society of
Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists
and the Society of Professional Evaluation Engineers as published in March 2007.

	 	 	“PSC Pledge” means the pledge of the Borrower’s share of production under the PSCs to be entered
into between the Borrower and the Security Trustee.

	 	 	“PSCs” means the Daan PSC, the Miao 3 PSC and the Moliqing PSC.

	 	 	“PU Reserves” means reserves classified as proved undeveloped reserves in an Independent Reserves
Report or a Lenders’ Technical Report in accordance with the principles approved by the Society of
Petroleum Engineers, the World Petroleum Council, the American Association of Petroleum Geologists
and the Society of Professional Evaluation Engineers as published in March 2007.

	 	 	“Put Price” has the meaning given in the MIE SPA.

	 	 	“Put Right” has the meaning given in the MIE SPA.
	 
	 	 	“Quotation Day” means, in relation to any period for which an interest rate is to be determined,
two Business Days before the first day of that period unless market practice differs in the
Relevant Interbank Market, in which case the Quotation Day will be determined by the Agent in
accordance with market practice in the Relevant Interbank Market (and if quotations would normally
be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day
will be the last of those days).
	 
	 	 	“Receiver” means a receiver or receiver and manager or administrative receiver of the whole or any
part of the Charged Property appointed in accordance with the terms of the Security Documents.

	 	 	“Redetermination Date” means each of the following dates:

	 	(a)	 	each of (i) the Business Day falling three Months after the first Utilisation
Date and (ii) 30 September 2008;

- 19 -

 

	 	(b)	 	commencing one Month prior to 31 December 2007, the Business Day falling one Month
prior to each Half-year Date;

	 	(c)	 	the Business Day falling one Month prior to the date of a proposed addition of a Borrowing
Base Asset pursuant to Clause 5.3 (New Fields as Borrowing Base Assets);

	 	(d)	 	the Business Day falling one Month prior to the date of a proposed withdrawal of a Borrowing
Base Asset pursuant to Clause 5.5.1;

	 	(e)	 	any Business Day notified by the Borrower to the Agent and the Technical Bank by not less
than thirty days prior notice provided that such notification may only be given twice in any
12-month period;

	 	(f)	 	any Business Day notified by the Agent to the Borrower and the Technical Bank by not less
than thirty days prior notice following the occurrence and during the continuance of an Event
of Default; and

	 	(g)	 	any Business Day notified by the Agent to the Borrower and the Technical Bank by not less
than thirty days prior notice following:

	 	(i)	 	the receipt of Compensation in an amount exceeding $2,000,000 by the
Borrower; or
	 
	 	(ii)	 	receipt by the Agent of a written request from the Borrower,

	 	 	 	provided that such notification may only be given once in any period between two
Redetermination Dates.

	 	 	“Reference Banks” means the Agent and two other international banks appointed by the Agent with
the consent of the Borrower.

	 	 	“Relevant Interbank Market” means the London interbank market.

	 	 	“Repayment Date” means 31 March, 30 June, 30 September and 31 December of each calendar year,
provided that if any such date is not a Business Day, the
“Repayment Date” shall be the Business
Day immediately preceding such date.

	 	 	“Repeating Representations” means each of the representations set out in Clauses 19.1 (Status) to
and including 19.4 (Power and Authority) (other than sub-Clause 19.4.3), Clause 19.6 (Governing
law and enforcement), 19.13 (Financial Statements) to and including Clause 19.15 (No proceedings
pending or threatened) and Clause 19.19 (Borrowing Base Assets).
	 
	 	 	“Reserve Tail Date” means the date notified by the Technical Bank to the Borrower, as determined
and re-calculated in each Financial Projection, as the date on which
the aggregate of the Proved
Reserves in the Borrowing Base Assets are projected to fall below twenty-five per cent. (25%) of
the aggregate of the Proved Reserves as

- 20 -

 

	 	 	estimated in, or determined by reference to, the most recent Independent Reserves Report or
Lenders’ Technical Report.
	 
	 	 	“Revenues” means:

	 	(a)	 	for the purpose of calculating Projected Net Cash Flow, one hundred per cent (100%) of all
projected revenues arising from PD Reserves and PU Reserves for the relevant calculation
period; and
	 
	 	(b)	 	for all other purposes, all actual revenues of the Borrower during the relevant period.

	 	 	“Scheduled Redetermination Date” means each Redetermination Date referred to in paragraphs (a) and
(b) of the definition of “Redetermination Date”.
	 
	 	 	“Scheduled Maturity Date” means the date falling 72 Months after the date of this Agreement.
	 
	 	 	“Screen Rate” means the British Bankers’ Association Interest Settlement Rate for dollars for the
relevant period, displayed on the appropriate page of the Telerate screen provided that, if the
agreed page is replaced or service ceases to be available, the Agent may specify another page or
service displaying the appropriate rate after consultation with the Borrower and the Lenders.
	 
	 	 	“Second MIE Loan” means the loan, in an amount of $2,500,000, made by Far East to the Borrower
pursuant to the terms of an intercompany loan agreement dated 26 June 2008 entered into between Far
East as lender and the Borrower as borrower.
	 
	 	 	“Second MIH Share Charge” means the charge over shares to be entered into between MIH and the
Security Trustee in relation to 16% of the shares in the capital of the Borrower, which MIH will
own upon and from Share Exchange Closing.
	 
	 	 	“Secured Obligations” means all obligations at any time due, owing or incurred by any Obligor to
any Secured Party under the Finance Documents, whether present or future, actual or contingent (and
whether incurred solely or jointly and whether as principal or surety or in some other capacity).
	 
	 	 	“Secured Parties” means the Security Trustee, the Agent, the Offshore Account Bank and each
Creditor from time to time party to this Agreement, and any Receiver or Delegate.
	 
	 	 	“Security” means a mortgage, charge, pledge, hypothecation, lien (statutory or other), assignment,
encumbrance, deed of trust, deposit arrangement, preference, priority or other security interest
securing any obligation of any person or any other agreement or arrangement having a similar
effect.
	 
	 	 	“Security Documents” means:

	 	(a)	 	the Accounts Assignment;

- 21 -

 

	 	(b)	 	the Borrower Debenture;
	 
	 	(c)	 	(until Share Exchange Closing) the Far East Share Charge;
	 
	 	(d)	 	the First MIH Share Charge;
	 
	 	(e)	 	the Second MIH Share Charge;
	 
	 	(f)	 	the PSC Pledge;
	 
	 	(g)	 	each notice to any person, and each acknowledgment executed by any person
in favour of the Security Trustee, in relation to any rights of the Borrower over which
Security has been granted in favour of the Security Trustee, in each case required to be
delivered under or pursuant to the Security Documents;
	 
	 	(h)	 	any Security entered into by the Borrower pursuant to Clause 5.3.5 (New Fields as
Borrowing Base Assets);
	 
	 	(i)	 	the Assignment of ZR Guarantee;
	 
	 	(j)	 	any other document designated as such by the Agent and the Borrower; and
	 
	 	(k)	 	any document that amends, supplements, modifies or waives any provision of any of the
foregoing.

	 	 	“Selection Notice” means a notice substantially in the form set out in Part 2 of Schedule 3
(Requests) given in accordance with Clause 10 (Interest Periods).
	 
	 	 	“Share Exchange Agreement” means the share exchange agreement entered or to be entered into between
Far East and MIH pursuant to which MIH will authorise the sale and issuance to Far East of shares
in MIH and Far East will convey and transfer shares in the Borrower to MIH.
	 
	 	 	“Share Exchange Closing” has the meaning given to “Closing” in the Share Exchange Agreement.
	 
	 	 	“Simple Majority Lenders” means:

	 	(a)	 	if there are no Loans then outstanding, a Lender or Lenders whose Commitments
aggregate more than fifty per cent. (50%) of the Total Commitments (or, if the Total
Commitments have been reduced to zero, aggregate more than fifty per cent. (50%) of the
Total Commitments immediately prior to the reduction); or
	 
	 	(b)	 	at any other time, a Lender or Lenders whose participations in the Loans then outstanding
aggregate more than fifty per cent. (50%) of all the Loans then outstanding,

	 	 	“SPA” means the stock purchase agreement which was made by and between Microbes as seller and Far
East as Buyer on 11 August 2003 in relation to the purchase of all 

- 22 -

 

	 	 	issued and outstanding common
stock of the Borrower, and all subsequent amendments, revisions and modifications thereto.

	 	 	“SPDB” means Shanghai Pudong Development Bank Dalian Branch.
	 
	 	 	“SPDB-ZR Loan” means the loan by SPDB to ZR in an amount equal to the RMB equivalent of $10,500,000
to enable ZR to comply with payment obligations in connection with the purchase of all shares in
the Borrower not owned by Far East at the date of this Agreement from Fullfame Enterprises Limited.
	 
	 	 	“SPDB-ZR Loan Account” means the account notified as such by the Borrower to the Agent in the name
of the Borrower and maintained with SPDB into which the Borrower will deposit (a) the sum of
$2,500,000 (or its equivalent in RMB) from the proceeds of the Second MIE Loan and (b) a further
sum of up to $8,000,000 (or its equivalent in RMB) to enable SPDB to make the SPDB-ZR Loan.
	 
	 	 	“Specified Time” means a time determined in accordance with Schedule 7 (Timetables).
	 
	 	 	“Subordinated Indebtedness” means all unsecured Financial Indebtedness of any person which is
subordinated to the Financial Indebtedness outstanding under this Agreement and all other amounts
owing under the Finance Documents pursuant to a Subordination Agreement.
	 
	 	 	“Subordination Agreement” means any subordination agreement entered into by the Borrower or Far
East and the Agent with any person substantially on the terms set out in Schedule 9 (Form of
Subordination Agreement) or on such other terms as may be acceptable to the Agent.
	 
	 	 	“Subsidiary” means in relation to any corporation or other entity, a corporation or other entity:

	 	(a)	 	which is controlled, directly or indirectly, by the first mentioned corporation or other
entity;
	 
	 	(b)	 	more than half the issued share capital or other entity interests of which is beneficially
owned, directly or indirectly by the first mentioned corporation; or
	 
	 	(c)	 	which is a Subsidiary of another Subsidiary of the first mentioned corporation or other
entity,

	 	 	and for this purpose, a corporation or other entity shall be treated as being controlled by another
if that other corporation or other entity is able to direct its affairs and/or to control the
composition of its board of directors or equivalent body.
	 
	 	 	“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature
(including any penalty or interest payable in connection with any failure to pay or any delay in
paying any of the same).

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	 	 	“Technical Assumptions” means assumptions as to the business and operations of the Borrower
(that do not constitute Economic Assumptions) and which are inputs to the Financial Model in
producing a Financial Projection and which include such statements, projections and estimates
determined in accordance with Clause 6 (Borrowing Base Amount).
	 
	 	 	“Termination Agreement” means an agreement entered or to be entered into between the Borrower, Far
East and Microbes terminating the ongoing rights of Microbes under the SPA, including in relation
to board representation and payment of a percentage of the Borrower’s net oil revenues, in form and
substance satisfactory to the Agent (acting reasonably).
	 
	 	 	“Termination Date” means the day falling on the earlier of:

	 	(a)	 	the Scheduled Maturity Date; and
	 
	 	(b)	 	the Reserve Tail Date provided that if such date is not a Business Day, the Termination Date
shall fall on the Business Day immediately preceding the Reserve Tail Date.

	 	 	“Total Commitments” means the aggregate of the Commitments.
	 
	 	 	“Transaction Documents” means the Finance Documents and the Project Documents.
	 
	 	 	“Transaction Security” means the Security created or expressed to be created in favour of the
Security Trustee pursuant to the Security Documents.
	 
	 	 	“Transfer Certificate” means a certificate substantially in the form set out in Schedule 5 (Form of
Transfer Certificate) or any other form agreed between the Agent and the Borrower.
	 
	 	 	“Transfer Date” means, in relation to a transfer, the later of:

	 	(a)	 	the proposed Transfer Date specified in the Transfer Certificate; and
	 
	 	(b)	 	the date on which the Agent executes the Transfer Certificate.

	 	 	“Transferred ZR Loan” has the meaning given in the First Amendment and Restatement Agreement.
	 
	 	 	“Unpaid Sum” means any sum due and payable but unpaid by the Borrower under the Finance Documents.
	 
	 	 	“Unscheduled Redetermination Date” means any Redetermination Date referred to in paragraphs (c) to
(g) of the definition of “Redetermination Date”.
	 
	 	 	“Utilisation” means a utilisation of the Facility.
	 
	 	 	“Utilisation Date” means the date of a Utilisation, being the date on which the relevant Loan is to
be made.

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	 	 	“Utilisation Request” means a notice substantially in the form set out in Part 1 of Schedule 3
(Requests).
	 
	 	 	“VAT” means value added tax and any other tax of a similar nature. 

“ZR” means Mr Zhang Ruilin (PRC
passport number G18206054).
	 
	 	 	“ZR Guarantee” has the meaning given in the First Amendment and Restatement Agreement.
	 
	 	 	“ZR Loan” means the loan, in an amount not exceeding $119,206,906.36, made by the Borrower to ZR
and documented pursuant to a repayment agreement dated 19 September 2007.
	 
	1.2	 	Construction

	 	1.2.1	 	Unless a contrary indication appears any reference in this Agreement to:

	 	(a)	 	the “Agent”, the “Arranger”, the “Security Trustee”, the “Offshore Account Bank”, the
“Onshore Account Bank”, the “Security Trustee”, the “Technical Bank”, any “Finance
Party”, any “Lender”, any “Hedge Counterparty”, any “Secured Party”, or any “Party” shall be
construed so as to include its successors in title, permitted assigns and permitted
transferees;
	 
	 	(b)	 	“assets” includes present and future properties, revenues and rights of every description;
	 
	 	(c)	 	a “Finance Document” or “Project Document” any other agreement or instrument is a reference
to that Finance Document or Project Document other agreement or instrument as amended or
novated and includes any agreement or instrument that replaces it;
	 
	 	(d)	 	“indebtedness” includes any obligation (whether incurred as principal or as surety) for the
payment or repayment of money, whether present or future, actual or contingent;
	 
	 	(e)	 	a “person” includes any person, firm, company, corporation, government,
state or agency of a state or any association, trust or partnership (whether or not having
separate legal personality) of two or more of the foregoing;
	 
	 	(f)	 	a “regulation” includes any regulation, rule, official directive, request or guideline
(whether or not having the force of law) of any governmental,
intergovernmental or supranational body, agency, department or regulatory,
self-regulatory or other authority or organisation;
	 
	 	(g)	 	the words “include”, “includes” and “including” are not limiting;

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	 	(h)	 	“asset” includes a reference, in respect of a person, to the whole or any part of the
present or future business, undertaking, property, assets, rights (including intellectual
property rights) and revenues (including any right to receive revenues) of such person;
	 
	 	(i)	 	“agreed form” means, in relation to any document, agreement or instrument, that the same is
in form and substance agreed between the Borrower and the Agent and initialled (for the
purposes of identification only) by the Borrower and the Agent;
	 
	 	(j)	 	“or”, “other” and “otherwise” shall be construed disjunctively and not as implying similarity
(unless the word “similar” or some other word of like meaning is added);
	 
	 	(k)	 	a provision of law is a reference to that provision as amended or re-enacted; and
	 
	 	(l)	 	unless otherwise indicated, a time of day is a reference to Hong Kong time.

	 	1.2.2	 	Clause and Schedule headings are for ease of reference only.
	 
	 	1.2.3	 	Unless a contrary indication appears, a term used in any other Finance Document or in any
notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement.
	 
	 	1.2.4	 	a Default or Event of Default “continuing” or words of similar effect shall mean a Default
or Event of Default which has occurred and which has not been:

	 	(a)	 	cured or remedied to the satisfaction of the Majority Lenders; or
	 
	 	(b)	 	waived in accordance with the terms of the Finance Documents.

	1.3	 	Currency Symbols and Definitions
	 
	 	 	“$” and “dollars” denote lawful currency of the United States of America.
	 
	 	 	“RMB” denotes lawful currency of the People’s Republic of China.

	1.4	 	Third party rights

	 	1.4.1	 	Unless expressly provided to the contrary in this Agreement, a person who is not a Party has
no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the
benefit of any term of any Finance Document.
	 
	 	1.4.2	 	Notwithstanding any term of this Agreement, the consent of any person who is not a Party is
not required to rescind or vary any Finance Document at any time.

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SECTION 2

THE FACILITY

	2.	 	THE FACILITY
	 
	2.1	 	The Facility

	 	 	Subject to the terms of this Agreement, the Lenders make available to the Borrower a reducing
revolving dollar loan facility in an aggregate amount equal to the Total Commitments. The Total
Commitments may be increased by reference to the value of the Borrowing Base Assets from time to
time included in the Financial Projections, with the prior written consent of all the Lenders.
	 
	2.2	 	Finance Parties’ rights and obligations

	 	2.2.1	 	The obligations of each Finance Party under the Finance Documents are several. Failure by
a Finance Party to perform its obligations under the Finance Documents does not affect the
obligations of any other Party under the Finance Documents. No Finance Party is responsible
for the obligations of any other Finance Party under the Finance Documents.
	 
	 	2.2.2	 	The rights of each Finance Party under or in connection with the Finance Documents are
separate and independent rights and any debt arising under the Finance Documents to a Finance
Party from the Borrower shall be a separate and independent debt.
	 
	 	2.2.3	 	A Finance Party may, except as otherwise stated in the Finance Documents,
separately enforce its rights under the Finance Documents.

	3.	 	PURPOSE
	 
	3.1	 	Purpose of the Facility
	 
	 	 	The Borrower shall apply all amounts borrowed by it under the Facility in the following order of
priority:

	 	3.1.1	 	first:

	 	(a)	 	in repayment in full of the Financial Indebtedness of the Borrower under the Bridge Facility
Agreement;
	 
	 	(b)	 	towards repayment of Financial Indebtedness of the Borrower owed to SPDB and LCCU, in an
amount of up to $70,000,000; and
	 
	 	(c)	 	to fund the Debt Service Reserve Account up to the Debt Service Reserve Requirement;

	 	3.1.2	 	second:

	 	(a)	 	in paying the costs of developing, maintaining, operating and managing the interest of
the Borrower in any Borrowing Base Asset;

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	 	(b)	 	paying the costs incurred or to be incurred by the Borrower in connection with any
Hedge Agreements; and
	 
	 	(c)	 	paying fees, costs and expenses incurred by the Borrower in connection with the transactions
contemplated by the Finance Documents;

	 	3.1.3	 	third, in an amount not exceeding $20,000,000 as follows:

	 	(a)	 	in an amount not exceeding $5,000,000 in financing (whether by disbursement or
reimbursement) the payment of amounts due and payable by the Borrower to Microbes under
the SPA, subject to delivery of evidence that demand has been made on the Borrower in relation
to such amounts and, in the case of reimbursement, evidence of payment, in each case in form
and substance reasonably satisfactory to the Agent; and/or
	 
	 	(b)	 	the balance thereof, either:

	 	(i)	 	in financing a payment to Microbes pursuant to the Termination Agreement; or
	 
	 	(ii)	 	if the Borrower has complied with its obligations under Clause 22.25 (SPA) but a Termination
Agreement has not been signed by 31 January 2008, and provided that all amounts which have
fallen due and payable by the Borrower to Microbes under the SPA at such time (other than any
amount being disputed in good faith and in respect of which adequate reserves are being
maintained in a manner satisfactory to the Agent) have been (or will, from the proceeds of
such Utilisation, be) paid in full, for the general corporate purposes of the Borrower;

	 	3.1.4	 	fourth, after the Agent (acting on the instructions of the Majority Lenders) has confirmed
that it is satisfied that the Facilities have been Utilised and applied in accordance with
clause 3.1.1, 3.1.2 and 3.1.3 (in the case of Clauses 3.1.2(a), 3.1.2(b) and 3.1.3(b) to a
reasonably acceptable level at any given time):

	 	(a)	 	financing any Agreed Acquisition; and
	 
	 	(b)	 	for the general corporate purposes of the Borrower in an amount not exceeding $5,000,000.

	3.2	 	Monitoring
	 
	 	 	No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant
to this Agreement.

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	4.	 	CONDITIONS OF UTILISATION
	 
	4.1	 	Initial Conditions Precedent
	 
	 	 	The Borrower may not deliver a Utilisation Request unless the Agent has received all of the
documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance
satisfactory to the Agent (acting reasonably). The Agent shall notify the Borrower and the Lenders
promptly upon being so satisfied.

	4.2	 	Further Conditions Precedent
	 
	 	 	The Lenders will only be obliged to comply with Clause 7.6 (Lenders’ participation)
if:

	 	4.2.1	 	save in the case of a deemed Utilisation pursuant to Clause 7,3 (Deemed Utilisation), on the
date of the applicable Utilisation Request and on the proposed Utilisation Date:

	 	(a)	 	no Default is continuing or would result from the proposed Loan; and
	 
	 	(b)	 	the Repeating Representations to be made by the Borrower are true in all material respects;

	 	4.2.2	 	the proposed Utilisation will not cause the Available Facility to be exceeded; and
	 
	 	4.2.3	 	in relation the first Utilisation, the Borrower has contracted hedging
transactions, in accordance with Schedule 10 (Hedging), satisfactory to the Majority Lenders.

	4.3	 	Loan Limit
	 
	 	 	The Borrower may not Utilise any amount of the Facility exceeding $120,000,000 without the prior
written consent of the Agent (acting on the instructions of all the Lenders).

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SECTION 3

BORROWING BASE AMOUNT

	5.	 	BORROWING BASE ASSETS
	 
	5.1	 	General Rules
	 
	 	 	A Field may only be a Borrowing Base Asset to the extent of the interest of the Borrower in
such Field and if, and for so long as:

	 	(a)	 	the Borrower’s interest is not subject to any Security (other than Security permitted
pursuant to Clause 22.5.3 (Negative Pledge)); and
	 
	 	(b)	 	all material Authorisations applicable to the development and operation of such Field and
then required to have been obtained by law, regulation, contract or customary practice in the
People’s Republic of China or under any Project Document have been obtained are in full force
and effect and have not been revoked.

	5.2	 	Fields as Borrowing Base Assets
	 
	 	 	Without prejudice to Clause 5.1 (General Rules), each of the Daan Field, the Miao 3 Field and the
Moliqing Field are, to the extent of the allocation entitlement of the Borrower under the
relevant PSC (and without prejudice to the rights and interests of PetroChina thereunder),
Borrowing Base Assets as at the date of this Agreement.
	 
	5.3	 	New Fields as Borrowing Base Assets
	 
	 	 	The Borrower may at any time submit a written application to Agent requesting, by not less than
sixty days notice, that a new Field be included as a Borrowing Base Asset, in which event,
such Field will become a Borrowing Base Asset with effect from the date that the Agent
notifies the Borrower that the Majority Lenders (acting reasonably) are satisfied that:

	 	5.3.1	 	all material Authorisations applicable to the development and operation of such new Field
and then required by law, regulation, contract or customary practice in the People’s Republic
of China or under any Project Document to have been obtained, for the development and
operation of the new Field have been obtained and are in full force and effect;
	 
	 	5.3.2	 	all relevant Field, infrastructure and pipeline information and plans has been reviewed and
found satisfactory by the Technical Bank (acting reasonably);
	 
	 	5.3.3	 	an Independent Reserves Report in relation thereto has been provided to the Agent and
approved by the Technical Bank (acting reasonably);
	 
	 	5.3.4	 	a Financial Projection demonstrating the Borrowing Base Amount (and being prepared using
Proved Reserves and Probable Reserves at the discretion of the Technical Bank after inclusion
of the new Field) has been provided to the Agent; and

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	 	5.3.5	 	documentation in relation to the granting of Security to the Agent over the Borrower’s
interest in the new Field has been agreed with the Security Trustee and such Security is
consistent with documentation governing Security over the other Borrowing Base Assets,

	 	 	provided that such notification will be deemed to have been given to the Borrower if (x) the Agent
has failed to notify the Borrower to the contrary within 90 days following delivery by the
Borrower of a written application to the Agent under this Clause 5.3 and (y) the Security
referred to in Clause 5.3.5 has been created and perfected.
	 
	5.4	 	Withdrawal of Borrowing Base Assets by the Agent

	 	5.4.1	 	A Field shall cease to be a Borrowing Base Asset on the date the Agent gives notice to the
Borrower that such Field fails to satisfy any of the conditions specified in Clause 5.1
(General Rules) (which notice shall specify which conditions are not satisfied).
	 
	 	5.4.2	 	If, within five Business Days of the Agent advising the Borrower that a Field has ceased to
be a Borrowing Base Asset in accordance with Clause 5.4.1 above, the Borrower produces
evidence satisfactory to the Agent, acting reasonably, that the conditions specified in Clause
5.1 (General Rules) have been and continue to be fulfilled in respect of that Field, then such
Field shall be immediately reinstated as a Borrowing Base Asset and the provisions of the
Finance Documents shall continue to apply as if such Field had not ceased to be a Borrowing
Base Asset.
	 
	 	5.4.3	 	Within fifteen Business Days of the Agent advising the Borrower that a Field has ceased to
be a Borrowing Base Asset in accordance with Clause 5.4.1 above, and provided that the Field
has not been reinstated as a Borrowing Base Asset under Clause 5.4.2 above, the Technical Bank
shall deliver to the Lenders and the Borrower a Financial Projection reflecting such removal
and the Borrower shall, within three Business Days of receipt of such Financial Projection,
make a prepayment or repayment of the Loans in an amount necessary to ensure that, following
the removal of such Field, the Loans do not exceed the Available Facility.

	5.5	 	Withdrawal of Borrowing Base Assets by the Borrower

	 	5.5.1	 	The Borrower may request that a Field shall cease to be a Borrowing Base Asset by giving to
the Agent not less than thirty days’ notice of its intention to withdraw that Field as a
Borrowing Base Asset.
	 
	 	5.5.2	 	As soon as practicable following receipt of notice from the Borrower pursuant to Clause
5.5.1 the Agent shall request the Technical Bank to deliver to the Lenders and the Borrower a
Financial Projection reflecting such withdrawal and specifying the amount if any by which the
Borrower must repay or prepay the Loans if it wishes to withdraw such Field as a Borrowing
Base Asset.

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	 	5.5.3	 	At any time during a period of thirty days commencing on the date of delivery of the
Financial Projection under Clause 5.5.2, the Borrower may make a prepayment or repayment of
the Loans in an amount necessary to ensure that, following the withdrawal of such Field, the
Loans would not exceed the Available Facility and, upon the making of such repayment or
prepayment, such Field shall cease to be a Borrowing Base Asset.

	5.6	 	Release of Security

	 	5.6.1	 	Following the withdrawal of any Field in accordance with Clause 5.4 (Withdrawal of
Borrowing Base Assets by the Agent) or 5.5 (Withdrawal of Borrowing Base Assets by the
Borrower), and provided no Default has occurred and is continuing and prepayment or repayment
has been made as required in accordance with this Agreement, any Security created over such
Field in favour of the Security Trustee shall promptly be released by the Security Trustee.
	 
	 	5.6.2	 	If any Security created in favour of the Security Trustee over a Field which is withdrawn in
accordance with Clause 5.4 (Withdrawal of Borrowing Base Assets by the Agent) or Clause 5.5
(Withdrawal of Borrowing Base Assets by the Borrower) is not released by the Security Trustee
due to the fact a Default has occurred and is continuing, such Security shall promptly be
released by the Security Trustee when such Default is no longer continuing.

	6.	 	BORROWING BASE AMOUNT
	 
	6.1	 	Timing of Financial Projection
	 
	 	 	A Financial Projection shall be prepared for each Redetermination Date.
	 
	6.2	 	Preparation of Financial Projection

	 	6.2.1	 	Each Financial Projection shall be prepared by the Technical Bank utilising the
Financial Model and applying values for each of the Assumptions determined pursuant to this
Clause 6 (Borrowing Base Amount) for the purposes of that Financial Projection.
	 
	 	6.2.2	 	Each Financial Projection shall be in substantially the same form as the Financial Model.
	 
	 	6.2.3	 	The Technical Bank shall, as of each Redetermination Date and no later than five days prior
to the relevant Redetermination Date, deliver a Financial Projection prepared and
determined in accordance with this Clause 6 (Borrowing Base Amount) to the Borrower and
each Finance Party. Subject to the provisions of this Clause 6, each Financial Projection
prepared and delivered by the Technical Bank shall (save for manifest error) be final and
binding on the Borrower and each Finance Party.
	 
	 	6.2.4	 	The Technical Bank shall revise any Financial Projection to correct any manifest error
agreed between the Technical Bank and/or the Agent and the Borrower.

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	6.3	 	Determination of Assumptions

	 	6.3.1	 	The Technical Bank shall, no later than thirty days prior to a Scheduled Redetermination
Date, prepare and deliver to the Borrower the proposed Financial Projection for that Scheduled
Redetermination Date together with the Technical Assumptions and the Economic Assumptions
used in the preparation thereof. The Technical Assumptions shall be determined by the
Technical Bank acting reasonably on the basis of its good faith opinion and by reference to
the Lenders’ Technical Report prepared specifically for the proposed Financial Projection and
prices in the Economic Assumptions will reflect any Hedge Agreements entered into by the
Borrower in respect of the Borrowing Base Assets. The Technical Bank shall at the same time
deliver to the Borrower a copy of the relevant Lenders’ Technical Report used for the purposes
of the proposed Financial Projection.
	 
	 	6.3.2	 	If any of the Technical Assumptions used in the preparation of the proposed Financial
Projection is disputed by the Borrower and, following good faith discussions for a period of
ten days, the Technical Bank and the Borrower are unable to resolve the dispute and agree on
the relevant Technical Assumption, the Technical Bank shall prepare the Financial Projection
on the basis of the Technical Assumptions drawn from the relevant Lenders’ Technical Report,
as modified to take account of any changes requested by the Borrower and agreed by the
Technical Bank (acting reasonably, taking into account any independent reserve reports or oil price
forecasts provided by the Borrower, and providing reasonable justification for its
determination).
	 
	 	6.3.3	 	The Economic Assumptions shall be determined by the Agent acting reasonably on the
basis of its good faith opinion. If any of the Economic Assumptions used in the preparation of
the proposed Financial Projection are disputed by the Borrower and, following good faith
discussions for a period of ten days, the Agent and the Borrower are unable to resolve the
dispute and agree on the relevant Economic Assumption, the Agent shall prepare the Financial
Projection on the basis of the Economic Assumptions determined by it on a fair and reasonable
basis, as modified to take account of any changes requested by the Borrower and agreed by the
Agent (acting reasonably, taking into account any independent reserve reports or oil price
forecasts provided by the Borrower, and providing reasonable justification for its
determination).
	 
	 	6.3.4	 	In the case of any Financial Projection to be prepared on any Unscheduled Redetermination
Date, not later than twenty days prior to such Unscheduled Redetermination Date, the Technical
Bank shall notify the Borrower of all Assumptions proposed to be used for preparing the
relevant Financial Projection. The Assumptions shall be determined by the Technical Bank
acting reasonably on the basis of its good faith opinion following consultation with the
Borrower and otherwise, in the case of the Technical Assumptions, by reference to the Lenders’
Technical Report prepared specifically for the relevant Financial Projection (or, at the
discretion of the Technical Bank, the 

- 33 -

 

	 	 	 	last-delivered Lenders’ Technical Report) and, in
the case of the Economic Assumptions, prices will reflect any Hedge Agreements entered into by
the Borrower in respect of the Borrowing Base Assets.

	 	6.3.5	 	Subject to this Clause 6 (Borrowing Base Amount), the determination by the Technical Bank of
the Technical Assumptions and the Economic Assumptions shall be final and binding on the
Borrower and the Lenders and shall be used in preparing the relevant Financial Projection.
	 
	 	6.3.6	 	The Assumptions as determined pursuant to this Clause 6.3 (Determination of Assumptions)
shall be used in the Financial Projection for the relevant Redetermination Date.

	6.4	 	Modification of Financial Model
	 
	 	 	The Technical Bank or the Borrower may propose modifications to the computer programme comprising
the Financial Model at any time in order to correct any deficiency in its form or structure and the
Technical Bank shall make any modifications approved by both parties (such approval not to be
unreasonably withheld, conditioned or delayed) as soon as practicable.
	 
	6.5	 	Lenders’ Technical Report
	 
	 	 	The Technical Bank shall request the Independent Engineer to deliver to the Technical Bank, no
later than forty days before each Scheduled Redetermination Date and, in the sole discretion of the
Technical Bank, at any other time in relation to any Unscheduled Redetermination Date, a Lenders’
Technical Report.
	 
	6.6	 	Independent Engineer Review
	 
	 	 	The Technical Bank shall request, and the Borrower shall permit (on reasonable prior notice) the
Independent Engineer to visit the site of the Borrowing Base Assets on an annual basis in order to
review the Borrowing Base Assets and the Technical Assumptions provided that:

	 	6.6.1	 	(subject to Clause 22.28 (Confidentiality)) the above requirements shall not require
the Borrower to breach any applicable laws or confidentiality requirements
binding on it;
	 
	 	6.6.2	 	any such visit and/or review is in normal business hours and is subject to the normal
health, safety and security requirements of the Borrower applicable at the relevant time;
	 
	 	6.6.3	 	any such visit and/or review shall not interfere with or interrupt the operation of the
Borrowing Base Assets); and
	 
	 	6.6.4	 	no more than four representatives of the Independent Engineer shall be present on the site
of the Borrowing Base Assets at any time.

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SECTION 4

UTILISATION

	7.	 	UTILISATION OF FACILITY
	 
	7.1	 	Delivery of a Utilisation Request for a Loan
	 
	 	 	The Borrower may utilise the Facility by delivery to the Agent of a duly completed Utilisation
Request not later than the Specified Time.
	 
	7.2	 	Completion of a Utilisation Request for a Loan
	 
	 	 	Each Utilisation Request relating to a Loan is irrevocable and will not be regarded as having been
duly completed unless:

	 	7.2.1	 	the proposed Utilisation Date is a Business Day within the Availability Period;
	 
	 	7.2.2	 	the currency and amount of the Utilisation comply with Clause 7.4 (Currency and amount of
Loans); and
	 
	 	7.2.3	 	the Utilisation Request specifies the account or accounts into which the proceeds of the
Utilisation are to be paid (together with the relevant amounts) which:

	 	(a)	 	in the case of payments to SPDB and LCCU, as permitted by paragraph 3.1.1(b) of Clause 3.1
(Purpose of the Facility) shall be the accounts specified by such institutions in the
letters delivered pursuant to paragraph 6(p) of Schedule 2 (Conditions Precedent);
	 
	 	(b)	 	in the case of payments to Microbes as permitted by paragraph 3.1.3 of Clause 3.1 (Purpose of
the Facility) shall be the account specified by Microbes in the Termination Agreement;
	 
	 	(c)	 	in relation to the payment of fees, costs and expenses pursuant to paragraph 6(d) of Schedule
2 (Conditions Precedent) shall be the account specified by the Agent; and
	 
	 	(d)	 	in the case of all other amounts, shall be the Offshore Collection Account.

	7.3	 	Deemed Utilisation
	 
	 	 	If, by 11.00 a.m. (Hong Kong time) three days prior to the last day of an Interest Period, the
Borrower has not delivered to the Agent a duly completed Utilisation Request in relation to the
then existing Loan then, subject to the terms of this Agreement (including the Majority Lenders
being satisfied that the provisions of Clause 4.2 (Further Conditions Precedent) continue to be
met) and unless the Borrower informs the Agent otherwise, the Borrower shall be deemed to have
issued a Utilisation Request for a Loan equal to the Loan
due to be repaid on such last day with a Utilisation Date being such last day and with an Interest
Period of a duration equal to the duration of the Interest Period of the previous Loan.

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	7.4	 	Currency and amount of Loans

	 	7.4.1	 	The currency specified in a Utilisation Request must be dollars and the requested Loan must
be a minimum of $5,000,000 (and an integral multiple of $1,000,000) or, if less, the Available
Facility.
	 
	 	7.4.2	 	The amount of any proposed Loan in a Utilisation Request must be an amount which is not more
than the Available Facility.

	7.5	 	Number of Utilisations
	 
	 	 	The Borrower may not deliver more than three Utilisation Requests for Loans during each
three-month period between Repayment Dates.
	 
	7.6	 	Lenders’ participation

	 	7.6.1	 	If the conditions set out in this Agreement have been met, each Lender shall make its
participation in each Loan available by the Utilisation Date through its Facility Office.
	 
	 	7.6.2	 	The amount of each Lender’s participation in each Loan will be equal to the proportion borne
by its Available Commitment to the Available Facility immediately prior to making that Loan.
	 
	 	7.6.3	 	The Agent shall notify each Lender of the amount of each Loan and the amount of its
participation in that Loan, in each case by the Specified Time.

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SECTION 5

REPAYMENT, PREPAYMENT AND CANCELLATION

	8.	 	REPAYMENT
	 
	8.1	 	Repayment of Loans

	 	8.1.1	 	The Borrower shall repay each Loan on each Repayment Date falling on or after the date
falling 24 Months from the date of this Agreement, provided that, subject to the terms of this
Agreement:

	 	(a)	 	if the Agent has received a Utilisation Request requesting a Loan on such Repayment Date of a
principal amount greater than the relevant Loan to be repaid or if the Borrower shall be
deemed to have issued a Utilisation Request (and having not informed the Agent otherwise)
under Clause 7.3 (Deemed Utilisation) in such an amount, then no actual repayment of principal
need be made by the Borrower on such day and the amount advanced by the Lenders on the
relevant Utilisation Date will be the difference between the relevant Loan to be repaid on
such day and the Loan requested in the Utilisation Request;
	 
	 	(b)	 	if the Agent has received a Utilisation Request requesting a Loan on such Repayment Date of a
principal amount equal to the relevant Loan to be repaid or if the Borrower shall be deemed to
have issued a Utilisation Request (and having not informed the Agent otherwise) under Clause
7.3 (Deemed Utilisation), then no actual repayment of principal need be made by the Borrower
on such day and no actual advance need be made by the Lenders on the relevant Utilisation
Date; and
	 
	 	(c)	 	if the Agent has received a Utilisation Request requesting a Loan on such Repayment Date of a
principal amount less than the relevant Loan to be repaid, then
the repayment of principal required to be made by the Borrower on such day will be the
difference between the relevant Loan to be repaid and the Loan requested in the Utilisation
Request,

	 	 	 	and, in each case, a Loan of the principal amount requested or deemed requested in the Utilisation
Request shall be deemed to have been made on such Utilisation Date.

	 	8.1.2	 	The Borrower shall, on each Repayment Date, effect such repayment of the Loans from the
amount standing to the credit of the Offshore Collection Account as will reduce the principal
amounts then outstanding under the Facility (after such repayment) to the Available Facility
applicable as at that Repayment Date.
	 
	 	8.1.3	 	Subject to the terms of this Agreement, if, following an Unscheduled Redetermination
Date, the Loans exceed the Available Facility as of such Unscheduled Redetermination Date, the
Borrower shall, within 30 days of such Unscheduled Redetermination Date, repay an amount
equal to the

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	 	 	 	difference between the Loans and the Available Facility as at that Unscheduled Redetermination
Date.
	 
	 	8.1.4	 	If, pursuant to this Clause 8.1, the Borrower actually repays (rather than being deemed to
repay under Clause 8.1.1) the whole or any part of any Loan before the date falling 24 Months
after the date of this Agreement, it shall, at the same time that it makes such repayment, pay
to the Agent, for the account of the Lenders, a fee in dollars equal to zero point five per
cent, (0.5%) of the amount repaid.
	 
	 	8.1.5	 	The Borrower must repay all outstanding Loans on the Termination Date.

	8.2	 	Reborrowing
	 
	 	 	Subject to the terms of this Agreement, any Loan repaid or amount prepaid under the Facility
shall be capable of being redrawn during the Availability Period.
	 
	9.	 	PREPAYMENT AND CANCELLATION
	 
	9.1	 	Illegality
	 
	 	 	If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its
obligations as contemplated by this Agreement or to fund or maintain its participation in any Loan:

	 	9.1.1	 	that Lender shall promptly notify the Agent upon becoming aware of that event;
	 
	 	9.1.2	 	upon the Agent notifying the Borrower, the Commitment of that Lender will be immediately
cancelled; and
	 
	 	9.1.3	 	the Borrower shall repay that Lender’s participation in the Loans made to the Borrower on
the last day of the Interest Period for each Loan occurring after the Agent has notified the
Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Agent
(being no earlier than the last day of any applicable grace period permitted by law).

	9.2	 	Voluntary cancellation
	 
	 	 	The Borrower may, if it gives the Agent not less than five Business Days (or such shorter
period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a
minimum amount and an integral multiple of $1,000,000) of the Maximum Facility. Any cancellation
under this Clause 9.2 shall reduce the Commitments of the Lenders rateably.
	 
	9.3	 	Voluntary prepayment

	 	9.3.1	 	The Borrower may, if it gives the Agent not less than five Business Days’ (or such
shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part
of the Loans (but, if in part, being an amount that reduces the aggregate amount of the Loans
by a minimum amount and integral multiple of $1,000,000).

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	 	9.3.2	 	If, pursuant to this Clause 9.3, the Borrower prepays the whole or any part of the
Loans before the date falling 24 Months after the date of this Agreement, it shall, at the
same time that it makes such prepayment, pay to the Agent, for the account of the Lenders, a
fee in dollars equal to zero point five per cent. (0.5%) of the amount prepaid.

	9.4	 	Right of repayment and cancellation in relation to a single Lender

	 	9.4.1	 	If:

	 	(a)	 	any sum payable to any Lender by the Borrower is required to be increased under paragraph (c)
of Clause 14.2 (Tax gross-up); or
	 
	 	(b)	 	any Lender claims indemnification from the Borrower under Clause 14.3 (Tax indemnity) or
Clause 15.1 (Increased costs),

	 	 	 	the Borrower may, whilst (in the case of paragraphs (a) and (b) above) the circumstance giving rise
to the requirement or indemnification continues, give the Agent notice of cancellation of the
Commitment of that Lender and its intention to procure the repayment of that Lender’s participation
in the Loans.
	 
	 	9.4.2	 	On receipt of a notice referred to in sub-clause 9.4.1 above, the Commitment of that Lender
shall immediately be reduced to zero.
	 
	 	9.4.3	 	On the last day of each Interest Period which ends after the Borrower has given notice under
sub-clause 9.4.1 above (or, if earlier, the date specified by the Borrower in that
notice), the Borrower shall repay that Lender’s participation in the Loans.

	9.5	 	Restrictions

	 	9.5.1	 	Any notice of cancellation or prepayment given by any Party under this Clause 9.5 shall
be irrevocable and, unless a contrary indication appears in this Agreement, shall specify
the date or dates upon which the relevant cancellation or prepayment is to be made and
the amount of that cancellation or prepayment.
	 
	 	9.5.2	 	Any prepayment under this Agreement shall be made together with accrued interest on the
amount prepaid and, subject to any Break Costs, without premium or penalty.
	 
	 	9.5.3	 	The Borrower shall not repay or prepay all or any part of the Loans or cancel all or any
part of the Commitments except at the times and in the manner expressly provided for in this
Agreement.
	 
	 	9.5.4	 	No amount of any Commitment cancelled under this Agreement may be subsequently reinstated.
	 
	 	9.5.5	 	If the Agent receives a notice under this Clause 9.5 it shall promptly forward a copy of
that notice to either the Borrower or the affected Lender, as appropriate.

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SECTION 6

COSTS OF UTILISATION

	10.	 	INTEREST
	 
	10.1	 	Calculation of interest
	 
	 	 	The rate of interest on each Loan for each Interest Period is the percentage rate per annum
which is the aggregate of:

	 	10.1.1	 	the Margin; and
	 
	 	10.1.2	 	LIBOR.

	10.2	 	Payment of interest

	 	10.2.1	 	Subject to Clause 10.2.2, the Borrower shall pay accrued interest on each Loan on the
last day of each Interest Period.
	 
	 	10.2.2	 	Prior to the first Repayment Date, the Borrower shall pay accrued interest on each Loan on
the date which falls three Months after the first Utilisation Date, and on each date falling a
multiple of three Months thereafter.

	10.3	 	Default interest

	 	10.3.1	 	If the Borrower fails to pay any amount payable by it under a Finance Document on its
due date, interest shall accrue on the overdue amount from the due date up to the date of
actual payment (both before and after judgment) at a rate which, subject to sub-clause 10.3.2
below, is two per cent. (2%) higher than the rate which would have been payable if the overdue
amount had, during the period of non-payment, constituted a Loan in the currency of the
overdue amount for successive Interest Periods, each of a duration selected by the Agent
(acting reasonably). Any interest accruing under this Clause 10.3 shall be immediately
payable by the Borrower on demand by the Agent.
	 
	 	10.3.2	 	If any overdue amount consists of all or part of a Loan which became due on a day which was
not the last day of an Interest Period relating to that Loan:

	 	(a)	 	the first Interest Period for that overdue amount shall have a duration equal to the
unexpired portion of the current Interest Period relating to that Loan; and
	 
	 	(b)	 	the rate of interest applying to the overdue amount during that first Interest Period shall
be two per cent. (2%) higher than the rate which would have applied if the overdue amount had
not become due.

	 	10.3.3	 	Default interest (if unpaid) arising on an overdue amount will be compounded with the
overdue amount at the end of each Interest Period applicable to that overdue amount but will
remain immediately due and payable.

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	10.4	 	Notification of rates of interest
	 
	 	 	The Agent shall promptly notify the Lenders and the Borrower of the determination of a rate of
interest under this Agreement.
	 
	11.	 	INTEREST PERIODS
	 
	11.1	 	Duration of Interest Periods

	 	11.1.1	 	The Borrower may select an Interest Period for a Loan in the Utilisation Request for that
Loan or (if that Loan has already been borrowed) in a Selection Notice.
	 
	 	11.1.2	 	Each Selection Notice is irrevocable and must be delivered to the Agent by the Borrower not
later than the Specified Time.
	 
	 	11.1.3	 	If the Borrower fails to deliver a Selection Notice to the Agent in accordance with Clause
11.1.2 above, the relevant Interest Period will be one Month.
	 
	 	11.1.4	 	Subject to this Clause 11, the Borrower may select an Interest Period for a Loan of one, two
or three Months (or any other period agreed between the Borrower and the Agent acting on the
instructions of all the Lenders).
	 
	 	11.1.5	 	An Interest Period for a Loan shall not extend beyond the Termination Date.
	 
	 	11.1.6	 	Each Interest Period for a Loan shall start on the Utilisation Date (including a deemed
Utilisation Date in accordance with Clause 7.3 (Deemed Utilisation)) of that or (if that Loan
has already been made) on the last day of the preceding Interest Period for that Loan.
	 
	 	11.1.7  	 	Notwithstanding Clauses 11.1.1 to 11.1.6 above, an Interest Period relating to any Unpaid
Sum shall be determined by the Agent (acting reasonably).
	 
	 	11.1.8 	 	 Where two or more Utilisation Requests for Loans are issued, or deemed to have been issued
in accordance with Clause 7.3 (Deemed Utilisation), with the same Utilisation Date, then such
Loans shall be consolidated into and treated as a single Loan from such date.

	11.2	 	Non-Business Days
	 
	 	 	If an Interest Period would otherwise end on a day which is not a Business Day, that Interest
Period will instead end on the next Business Day in that calendar month (if there is one) or the
immediately preceding Business Day (if there is not).
	 
	12.	 	CHANGES TO THE CALCULATION OF INTEREST
	 
	12.1	 	Absence of quotations
	 
	 	 	Subject to Clause 12.2 (Market disruption), if LIBOR is to be determined by reference to the
Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the
Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the
remaining Reference Banks.

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	12.2	 	Market disruption

	 	12.2.1	 	If a Market Disruption Event occurs in relation to a Loan for any Interest Period,
then the LIBOR applicable to each Lender’s share of that Loan for that Interest Period shall
be the rate per annum notified to the Agent by that Lender as soon as practicable and in any
event before interest is due to be paid in respect of that Interest Period, to be that which
expresses as a percentage rate per annum the cost to that Lender of funding its participation
in that Loan from whatever source it may reasonably select.
	 
	 	12.2.2	 	In this Agreement “Market Disruption Event” means:

	 	(a)	 	at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not
available and none or only one of the Reference Banks supplies a rate to the Agent to
determine LIBOR for dollars and the relevant Interest Period; or
	 
	 	(b)	 	before close of business in London on the Quotation Day for the relevant Interest Period,
the Agent receives notifications from a Lender or Lenders (whose participations in a Loan
exceed thirty five per cent. (35) % of that Loan) that the cost to it of obtaining matching
deposits in the Relevant Interbank Market would be in excess of LIBOR.

	12.3	 	Alternative basis of interest or funding

	 	12.3.1	 	If a Market Disruption Event occurs and the Agent or the Borrower so requires, the
Agent and the Borrower shall enter into negotiations (for a period of not more than thirty
days) with a view to agreeing a substitute basis for determining the rate of interest.
	 
	 	12.3.2	 	Any alternative basis agreed pursuant to sub-clause 12.3.1 above shall, with the prior
consent of all the Lenders and the Borrower, be binding on all Parties.

	12.4	 	Break Costs

	 	12.4.1	 	The Borrower shall, within three Business Days of demand by a Finance Party, pay to that
Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being
paid by the Borrower on a day other than the last day of an Interest Period for that Loan or
Unpaid Sum.
	 
	 	12.4.2	 	Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a
certificate confirming the amount of its Break Costs for any Interest Period in which they
accrue.

	13.	 	FEES
	 
	13.1	 	General
	 
	 	 	The Borrower shall pay to the Arranger, the Agent, the Technical Bank and the Security
Trustee all fees in the amounts and at the times agreed in a Fee Letter.

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	13.2	 	Commitment fee
	 
	 	 	The Borrower shall pay to the Agent (for the account of the each Lender in the proportion that each
such Lender’s Available Commitment bears to the Total Commitments) a commitment fee equal to 0.50
per cent. per annum, based on Available Commitments on the date of this Agreement of $120,000,000
together with any additional Available Commitments made available in accordance with Clause 4.3
(Loan Limits), which shall be paid to the Agent for the account of the Lenders in arrear on the last day of each period of three
Months which falls during the Availability Period and on the last day of the Availability Period.

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SECTION 7

ADDITIONAL PAYMENT OBLIGATIONS

	14.	 	TAX GROSS UP AND INDEMNITIES
	 
	14.1	 	Definitions

	 	14.1.1	 	In this Agreement:
	 
	 	 	 	“Protected Party” means a Finance Party which is or will be subject to any
liability, or required to make any payment, for or on account of Tax in relation to
a sum received or receivable (or any sum deemed for the purposes of Tax to be
received or receivable) under a Finance Document.
	 
	 	 	 	“Tax Credit” means a credit against, relief or remission for, or repayment of any
Tax.
	 
	 	 	 	“Tax Deduction” means a deduction or withholding for or on account of Tax from a
payment under a Finance Document.
	 
	 	 	 	“Tax Payment” means either the increase in a payment made by the Borrower to a
Finance Party under Clause 14.2 (Tax gross-up) or a payment under Clause 14.3 (Tax
indemnity).
	 
	 	14.1.2	 	Unless a contrary indication appears, in this Clause 14 a reference to
“determines” or “determined” means a determination made in the absolute discretion of
the person making the determination.

	14.2	 	Tax gross-up

	 	14.2.1	 	The Borrower shall make all payments to be made by it without any Tax Deduction,
unless a Tax Deduction is required by law.
	 
	 	14.2.2	 	The Borrower shall promptly upon becoming aware that it must make a Tax Deduction (or
that there is any change in the rate or the basis of a Tax Deduction) notify the Agent
accordingly. Similarly, a Lender shall notify the Agent on becoming so aware in
respect of a payment payable to that Lender. If the Agent receives such notification
from a Lender it shall notify the Borrower.
	 
	 	14.2.3	 	If a Tax Deduction is required by law to be made by the Borrower, the amount of the
payment due from the Borrower shall be increased to an amount which (after making any
Tax Deduction) leaves an amount equal to the payment which would have been due if no
Tax Deduction had been required.
	 
	 	14.2.4	 	If the Borrower is required to make a Tax Deduction, the Borrower shall make that Tax
Deduction and any payment required in connection with that Tax Deduction within the
time allowed and in the minimum amount required by law.

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	 	14.2.5	 	Within thirty days of making either a Tax Deduction or any payment
required in connection with that Tax Deduction, the Borrower shall deliver to the
Agent for the Finance Party entitled to the payment evidence reasonably
satisfactory to that Finance Party that the Tax Deduction has been made or (as
applicable) any appropriate payment paid to the relevant taxing authority.

	14.3	 	Tax indemnity

	 	14.3.1	 	The Borrower shall (within three Business Days of demand by the Agent) pay to a
Protected Party an amount equal to the loss, liability or cost which that Protected
Party determines will be or has been (directly or indirectly) suffered for or on
account of Tax by that Protected Party in respect of a Finance Document.
	 
	 	14.3.2	 	Sub-clause 14.3.1 above shall not apply:

	 	(a)	 	with respect to any Tax assessed on a Finance Party:

	 	(i)	 	under the law of the jurisdiction in which that
Finance Party is incorporated or, if different, the jurisdiction (or
jurisdictions) in which that Finance Party is treated as resident for
tax purposes; or
	 
	 	(ii)	 	under the law of the jurisdiction in which that
Finance Party’s Facility Office is located in respect of amounts
received or receivable in that jurisdiction,

	 	 	 	if that Tax is imposed on or calculated by reference to the net income
received or receivable (but not any sum deemed to be received or receivable)
by that Finance Party; or
	 
	 	(b)	 	to the extent a loss, liability or cost is compensated for by
an increased payment under Clause 14.2 (Tax gross-up).

	 	14.3.3	 	a Protected Party making, or intending to make a claim under sub-clause 14.3.1 above
shall promptly notify the Agent of the event which will give, or has given, rise to the
claim, following which the Agent shall notify the Borrower.
	 
	 	14.3.4	 	A Protected Party shall, on receiving a payment from the Borrower under this Clause
14.3, notify the Agent.

	14.4	 	Tax Credit
	 
	 	 	If the Borrower makes a Tax Payment and the relevant Finance Party determines that:

	 	14.4.1	 	a Tax Credit is attributable either to an increased payment of which that Tax Payment
forms part, or to that Tax Payment; and
	 
	 	14.4.2	 	that Finance Party has obtained, utilised and retained that Tax Credit,

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	 	 	the Finance Party shall pay an amount to the Borrower which that Finance Party
determines will leave it (after that payment) in the same after-Tax position as it would
have been in had the Tax Payment not been required to be made by the Borrower.

	14.5	 	Stamp taxes
	 
	 	 	The Borrower shall pay and, within three Business Days of demand, indemnify each
Finance Party against any cost, loss or liability that Finance Party incurs in relation to
all stamp duty, registration and other similar Taxes payable in respect of any Finance
Document.
	 
	14.6	 	Value added tax

	 	14.6.1	 	All amounts set out, or expressed to be payable, under a Finance Document by any
Party to a Finance Party which (in whole or in part) constitute the consideration for
VAT purposes shall be deemed to be exclusive of any VAT which is chargeable on such
supply, and accordingly, subject to sub-clause 14.6.2 below, if VAT is chargeable on
any supply made by any Finance Party to any Party under a Finance Document, that Party
shall pay to the Finance Party (in addition to and at the same time as paying the
consideration) an amount equal to the amount of the VAT (and such Finance Party shall
promptly provide an appropriate VAT invoice to such Party).
	 
	 	14.6.2	 	Where a Finance Document requires any Party to reimburse a Finance Party for any
costs or expenses, that Party shall also at the same time pay and indemnify the Finance
Party against all VAT incurred by the Finance Party in respect of the costs or expenses
to the extent that the Finance Party reasonably determines that neither it nor any
other member of any group of which it is a member for VAT purposes is entitled to
credit or repayment from the relevant tax authority in respect of the VAT.

	14.7	 	Tax exemption or reduction
	 
	 	 	Any Finance Party that is entitled to an exemption from or reduction in the rate of a
Tax Deduction under the laws of the jurisdiction in which the Borrower is located or resident
for tax purposes or under any treaty to which such jurisdiction is a party, with respect to
any payments under a Finance Document, shall use reasonable efforts to deliver to the
Borrower or to the Agent, and the Agent shall deliver to the Borrower, at the time or times
prescribed by applicable law or regulation or reasonably requested by the Borrower or Agent,
such properly completed and executed documentation prescribed by applicable law or regulation
as will permit such payments to be made without Tax Deduction or at a reduced rate of Tax
Deduction. In addition, a Finance Party shall use reasonable efforts to deliver new
applicable documentation upon the expiration or obsolescence of any previously delivered
documentation or, if requested by the Borrower or Agent, such other documentation prescribed
by applicable law or regulation or reasonably requested by the Borrower or Agent as will
enable the Borrower or Agent to determine whether or not payments to or in respect of that
Finance Party are subject to Tax Deduction or any information reporting requirements.

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	15.	 	INCREASED COSTS
	 
	15.1	 	Increased costs

	 	15.1.1	 	Subject to Clause 15.3 (Exceptions) the Borrower shall, within three Business
Days of a demand by the Agent, pay for the account of a Finance Party the amount of any
Increased Costs incurred by that Finance Party or any of its Affiliates as a result of
(i) the introduction of or any change in (or in the interpretation, administration or
application of) any law or regulation or (ii) compliance with any law or regulation
made, enacted or imposed after the date of this Agreement.
	 
	 	15.1.2	 	In this Agreement “Increased Costs” means:

	 	(a)	 	a reduction in the rate of return from the Facility or on a
Finance Party’s (or its Affiliate’s) overall capital;
	 
	 	(b)	 	an additional or increased cost; or
	 
	 	(c)	 	a reduction of any amount due and payable under any
Finance Document,

	 	 	 	which is incurred or suffered by a Finance Party or any of its Affiliates to the
extent that it is attributable to that Finance Party having entered into its
Commitment or funding or performing its obligations under any Finance Document.

	15.2	 	Increased cost claims

	 	15.2.1	 	A Finance Party intending to make a claim pursuant to Clause 15.1 (Increased
costs) shall notify the Agent of the event giving rise to the claim, following which
the Agent shall promptly notify the Borrower.
	 
	 	15.2.2	 	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide
a certificate confirming the amount of its Increased Costs.

	15.3	 	Exceptions

	 	15.3.1	 	Clause 15.1 (Increased costs) does not apply to the extent any Increased Cost is:

	 	(a)	 	attributable to a Tax Deduction required by law to be made by
the Borrower;
	 
	 	(b)	 	compensated for by Clause 14.3 (Tax indemnity) (or would have
been compensated for under Clause 14.3 (Tax indemnity) but was not so
compensated solely because any of the exclusions in sub-clause 14.3.2 of
Clause 14.3 (Tax indemnity) applied); or
	 
	 	(c)	 	attributable to the breach by the relevant Finance Party or
its Affiliates of any law or regulation.

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	 	15.3.2	 	In this Clause 15.3, a reference to a “Tax Deduction” has the same
meaning given to the term in Clause 14.1 (Definitions).
	 
	 	15.3.3	 	Clause 15.1 (Increased Costs) does not apply to the extent that any Increased Cost is
claimed by a Finance Party and that Finance Party is repaid in full pursuant to Clause
9.4 (Right of repayment and cancellation in relation to a single Lender).

	16.	 	OTHER INDEMNITIES
	 
	16.1	 	Currency indemnity

	 	16.1.1	 	If any sum due from the Borrower under the Finance Documents (a “Sum”), or any order,
judgment or award given or made in relation to a Sum, has to be converted from the
currency (the “First Currency”) in which that Sum is payable into another currency (the
“Second Currency”) for the purpose of:

	 	(a)	 	making or filing a claim or proof against the Borrower;
	 
	 	(b)	 	obtaining or enforcing an order, judgment or award in
relation to any litigation or arbitration proceedings,

	 	 	 	the Borrower shall, as an independent obligation, within three Business Days of
demand, indemnify each Finance Party to whom that Sum is due against any cost, loss
or liability arising out of or as a result of the conversion including any
discrepancy between (A) the rate of exchange used to convert that Sum from the
First Currency into the Second Currency and (B) the rate or rates of exchange
available to that person at the time of its receipt of that Sum.
	 
	 	16.1.2	 	The Borrower waives any right it may have in any jurisdiction to pay any amount under
the Finance Documents in a currency or currency unit other than that in which it is
expressed to be payable.

	16.2	 	Other indemnities

	 	16.2.1	 	The Borrower shall, within three Business Days of demand, indemnify each Finance
Party against any cost, loss or liability incurred by that Finance Party as a result
of:

	 	(a)	 	the occurrence of any Event of Default;
	 
	 	(b)	 	a failure by an Obligor to pay any amount due from it under a
Finance Document on its due date, including any cost, loss or liability
arising as a result of Clause 36 (Turnover of Receipts) or 37 (Sharing);
	 
	 	(c)	 	funding, or making arrangements to fund, its participation in
a Loan requested by the Borrower in a Utilisation Request but not made by
reason of the operation of any one or more of the provisions of this Agreement
(other than by reason of default or negligence by that Finance Party); or

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	 	(d)	 	a Loan (or part of a Loan) not being prepaid in accordance with
a notice of prepayment given by the Borrower.

	 	16.2.2	 	The Borrower shall, within three Business Days of demand, pay to each Finance Party
an amount equal to any sum which such Finance Party was entitled to receive from an
Obligor under or in accordance with a Security Document but did not so receive when
due.

	16.3	 	Indemnity to the Agent and the Technical Bank

	 	16.3.1	 	The Borrower shall promptly indemnify the Agent against any reasonably incurred and
documented cost, loss or liability incurred by the Agent as a result of:

	 	(a)	 	investigating any event which it reasonably believes is a Default;
	 
	 	(b)	 	acting or relying on any notice, request or
instruction which it reasonably believes to be genuine, correct and
appropriately authorised.

	 	16.3.2	 	The Borrower shall promptly indemnify the Technical Bank against any reasonably
incurred and documented cost, loss or liability incurred by the Technical Bank as a
result of appointing the Independent Engineer, except to the extent directly caused by
the gross negligence, fraud or wilful misconduct of the Technical Bank or the
Independent Engineer.

	16.4	 	Indemnity to the Security Trustee

	 	16.4.1	 	The Borrower shall promptly indemnify the Security Trustee and any Receiver or
Delegate against any reasonably incurred and documented cost, loss or liability
reasonably incurred by it as a result of:

	 	(a)	 	the taking, holding, protection or enforcement of the
Transaction Security;
	 
	 	(b)	 	the exercise of any of the rights, powers, discretions and
remedies vested in them by the Finance Documents or by law;
	 
	 	(c)	 	any default by the Borrower in the performance of any of the
obligations expressed to be assumed by it in the Finance Documents; or
	 
	 	(d)	 	which otherwise relate to any of the Transaction Security or
the performance of the terms of this Agreement,

	 	 	 	(otherwise, in each case, than as a result of its gross negligence or wilful
misconduct).
	 
	 	16.4.2	 	The Security Trustee may, in priority to any payment to the Secured Parties,
indemnify itself out of the Charged Property in respect of, and pay and retain from the
proceeds of enforcement of the Transaction Security, all sums necessary to give effect
to the indemnity in this Clause 16.4.

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	17.	 	MITIGATION BY THE LENDERS
	 
	17.1	 	Mitigation

	 	17.1.1	 	Each Finance Party shall, in consultation with the Borrower, take all
reasonable steps to mitigate any circumstances which arise and which would result in
any amount becoming payable under or pursuant to, or cancelled pursuant to, any of
Clause 9.1 (Illegality), Clause 14 (Tax gross-up and indemnities) or Clause 15
(Increased costs) including transferring its rights and obligations under the Finance
Documents to another Affiliate or Facility Office.
	 
	 	17.1.2	 	Sub-clause 17.1.1 above does not in any way limit the obligations of the Borrower
under the Finance Documents.

	17.2	 	Limitation of liability

	 	17.2.1	 	The Borrower shall indemnify each Finance Party for all costs and expenses reasonably
incurred by that Finance Party as a result of steps taken by it under Clause 17.1
(Mitigation).
	 
	 	17.2.2	 	A Finance Party is not obliged to take any steps under Clause 17.1
(Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so
might be prejudicial to it.
	 
	 	17.2.3	 	No provision of this Agreement will:

	 	(a)	 	interfere with the right of any Finance Party to arrange its
affairs (tax or otherwise) in whatever manner it thinks fit;
	 
	 	(b)	 	oblige any Finance Party to investigate or claim any credit,
relief, remission or repayment available to it or the extent, order and manner
of any claim; or
	 
	 	(c)	 	oblige any Finance Party to disclose any information relating
to its affairs (tax or otherwise) or any computations in respect of Tax.

	18.	 	COSTS AND EXPENSES
	 
	18.1	 	Transaction expenses
	 
	 	 	The Borrower shall within three Business Days of demand pay the Agent, the Security Trustee,
the Offshore Account Bank and the Arranger the amount of all costs and expenses (including
legal fees and out of pocket costs and expenses) reasonably incurred by and documented any
of them in connection with negotiation, preparation, printing and execution of this
Agreement and the other Finance Documents and in connection with the perfection of all
Security granted or purported to be granted pursuant to the Transaction Security.
	 
	18.2	 	Amendment costs
	 
	 	 	If (a) the Borrower requests an amendment, waiver or consent or (b) an amendment is required
pursuant to Clause 41.8 (Change of currency) in each case in relation to a

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	 	 	Finance Document, the Borrower shall, within three Business Days of demand, reimburse
the Agent for the amount of all external costs and expenses (including legal fees)
reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with
that request or requirement.
	 
	18.3	 	Enforcement costs
	 
	 	 	The Borrower shall, within three Business Days of demand, pay to each Finance Party the
amount of all costs and expenses (including legal fees) incurred by that Finance Party in
connection with the exercise, enforcement or preservation of any rights, powers and remedies
under any Finance Document, the enforcement of the Transaction Security and any proceedings
instituted by or against any Finance Party (other than proceedings instituted by or against
the Borrower) as a consequence of taking, holding or enforcing the Transaction Security or
of exercising those rights, powers and remedies.
	 
	18.4	 	Independent Engineer’s fees
	 
	 	 	Subject to any agreement between the Agent and the Borrower in relation to the work scope
and fees of the Independent Engineer, and any limits agreed between the Borrower and the
Agent, the Borrower shall, within three Business Days of demand, pay to the Agent the amount
of all fees and expenses reasonably incurred by the Independent Engineer in carrying out its
duties pursuant to Clauses 6.5 (Lenders’ Technical Report) and 6.6 (Independent Engineer
Review).
	 
	18.5	 	Insurance Adviser’s fees
	 
	 	 	Subject to any agreement between the Agent and the Borrower in relation to the work scope
and fees of the Insurance Adviser, and any limits agreed between the Borrower and the Agent,
the Borrower shall, within three Business Days of demand, pay to the Agent the amount of all
fees and expenses reasonably incurred by the Insurance Adviser in advising the Lenders in
relation to the placement or renewal of the Material Insurances and the interests of the
Lenders therein.

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SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

	19.	 	REPRESENTATIONS
	 
	 	 	The Borrower makes the representations and warranties set out in this Clause 19 to each
Finance Party on the date of this Agreement.
	 
	19.1	 	Status

	 	19.1.1	 	The Borrower is duly organised and validly existing under the law of its
jurisdiction of organisation.
	 
	 	19.1.2	 	The Borrower has the power to own its assets and carry on its business as it is being
conducted.

	19.2	 	Binding obligations
	 
	 	 	The obligations expressed to be assumed by the Borrower in each Finance Document and
Project Document to which it is a party are, subject to any general principles of law as at
the date of this Agreement limiting its obligations which are specifically referred to in
any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation), legal, valid,
binding and enforceable obligations.
	 
	19.3	 	Non-conflict with other obligations
	 
	 	 	The entry into and performance by the Borrower of, and the transactions contemplated
by, the Finance Documents and the Project Documents to which it is a party do not and will
not conflict with:

	 	19.3.1	 	any material law or regulation applicable to it;
	 
	 	19.3.2	 	its constitutional documents; or
	 
	 	19.3.3	 	any material agreement or instrument binding upon it or any of its assets or
constitute a default (however described) under any such material agreement or
instrument or permit any counterparty to terminate any such material agreement
or instrument.

	19.4	 	Power and authority

	 	19.4.1	 	The Borrower has the power to enter into, perform and deliver, and has taken all
necessary action to authorise its entry into, performance and delivery of, the
Transaction Documents to which it is a party and the transactions contemplated by
those Transaction Documents.
	 
	 	19.4.2	 	No limit on the powers of the Borrower will be exceeded as a result of the borrowing,
grant of security or giving of guarantees or indemnities contemplated
by the Transaction Documents to which it is a party.
	 
	 	19.4.3	 	The Borrower has complied in all material respects with:

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	 	(a)	 	all applicable PRC regulations necessary for the conduct of its
business in the PRC, except where failure has not had and is not reasonably
likely to have a Material Adverse Effect; and
	 
	 	(b)	 	all applicable PRC regulations with which it is required to
comply in relation to the Borrowing Base Assets,

	 	 	 	including, in each case, all relevant SAFE rules and regulations in respect of
certificates, licenses and permits with which it must comply under applicable law.

	19.5	 	Validity and admissibility in evidence

	 	19.5.1	 	All Authorisations required or desirable:

	 	(a)	 	to enable the Borrower lawfully to enter into, exercise its
rights and comply with its obligations in the Finance Documents and the
Project Documents to which it is a party; and
	 
	 	(b)	 	to make the Finance Documents and the Project Documents to
which the Borrower is a party admissible in evidence in its jurisdiction
of organisation,

	 	 	 	have been obtained or effected and are in full force and effect.
	 
	 	19.5.2	 	All Authorisations necessary for the conduct of the business, trade and ordinary
activities of the Borrower, as the same are carried out from time to time, have been
obtained or effected and are in full force and effect.

	19.6	 	Governing law and enforcement

	 	19.6.1	 	The choice of English law as the governing law of this Agreement and any other
Finance Documents governed by English law will be recognised and enforced in the
jurisdiction of organisation of the Borrower.
	 
	 	19.6.2	 	Any judgment obtained in England in relation to this Agreement and any other Finance
Documents governed by English law will be recognised and enforced in the jurisdiction
of organisation of the Borrower.

	19.7	 	Insolvency
	 
	 	 	No:

	 	19.7.1	 	corporate action, legal proceeding or other procedure or step described in Clause
23.7 (Insolvency proceedings); or
	 
	 	19.7.2	 	creditors’ process described in Clause 23.8 (Creditors’ process),

	 	 	has been taken or, to its knowledge, threatened in relation to the Borrower and none of the
circumstances described in Clause 23.6 (Insolvency) applies to the Borrower.

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	19.8	 	Deduction of Tax
	 
	 	 	It is not required under the laws of the PRC to make any deduction for or on account
of Tax from any payment it may make under any Finance Document, provided that such payments
are sourced from the Offshore Collection Account maintained in London.
	 
	19.9	 	No filing or stamp taxes
	 
	 	 	Under the law of the jurisdiction of organisation of the Borrower it is not necessary
that the Finance Documents be filed, recorded or enrolled with any court or other authority
in that jurisdiction or that any stamp, registration or similar tax be paid on or in
relation to the Finance Documents or the transactions contemplated by the Finance Documents
except if any of the Finance Documents to which it is a party is executed in, brought into
or produced before a court in the Cayman Islands.
	 
	19.10	 	No default

	 	19.10.1	 	No Default and, on the date of this Agreement and the first Utilisation Date,
no Default is continuing or is reasonably likely to result from the making of any
Utilisation or the entry into, the performance of, or any transaction contemplated by,
any Transaction Document.
	 
	 	19.10.2	 	No other event or circumstance is outstanding which constitutes (or, with the expiry
of a grace period, the giving of notice, the making of any determination or any
combination of any of the foregoing, would constitute) a default under, or permit any
counterparty to terminate, any agreement or instrument (other than a Transaction
Document) which is binding on it or to which its assets are subject which has or is
reasonably likely to have a Material Adverse Effect.

	19.11	 	Taxation

	 	19.11.1	 	It is not materially overdue in the filing of any Tax returns and it is not overdue
in the payment of any material amount in respect of Tax.
	 
	 	19.11.2	 	No claims or investigations are being, or are reasonably likely to be, made or
conducted against it with respect to Taxes.
	 
	 	19.11.3	 	It is resident for Tax purposes only in the jurisdiction of its incorporation and in
the People’s Republic of China and it currently files tax returns in relation to its
registered offices in the United States of America and in Kazakhstan.

	19.12	 	No misleading information
	 
	 	 	Save as disclosed in writing to the Agent and the Arranger prior to the date of this
Agreement, all written information supplied by it to the Lenders is true, complete and
accurate in all material respects as at the date it was given, is accurate and not
misleading in any material respect as of the date such written information was provided to
the Lenders and was prepared in good faith and with due care, and, prior to the date of this
Agreement, nothing has occurred and no information has been given or withheld that would
result in any information provided being untrue or misleading in any material respect.

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	19.13	 	Financial statements

	 	19.13.1	 	Its financial statements most recently delivered under Clause 20.1.1 (Financial
statements) were prepared in accordance with IFRS consistently applied.
	 
	 	19.13.2	 	Its financial statements most recently delivered under Clause 20.1.1 (Financial
statements) fairly represent its financial condition and operations during the
financial year to which such financial statements relate.
	 
	 	19.13.3	 	There has been no material adverse change in its business or financial condition
since the date as at which the Original Financial Statements were prepared or, if
later, the date of the most recent audited financial statements delivered under Clause
20.1.1 (Financial statements).

	19.14	 	Pari passu ranking
	 
	 	 	Its payment obligations under the Finance Documents rank at least pari passu with the
claims of all its other unsecured and unsubordinated creditors, except for obligations
mandatorily preferred by law applying to companies generally.
	 
	19.15	 	No proceedings pending or threatened
	 
	 	 	No litigation, arbitration, administrative or regulatory proceedings of or before any
court, arbitral body or agency (or investigation before any governmental body or agency of
which it is aware) which, if adversely determined, could reasonably be expected, by
themselves or together with any other such proceedings to have a Material Adverse Effect are
current or (to the best of its knowledge and belief (having made due and careful enquiry))
pending or threatened against it.
	 
	19.16	 	No breach of laws

	 	19.16.1	 	It has not breached any law or regulation which breach has or could reasonably be
expected to have a Material Adverse Effect.
	 
	 	19.16.2	 	No labour disputes are current or, to the best of its knowledge and belief (having
made due and careful enquiry), threatened against the Borrower which have or could
reasonably be expected to have a Material Adverse Effect.

	19.17	 	Environmental laws

	 	19.17.1	 	It is in compliance with Clause 22.9 (Environmental compliance) and to the best
of its knowledge and belief (having made due and careful enquiry) no circumstances have
occurred which would prevent such compliance in a manner or to an extent which has, or
would reasonably be expected to have, a Material Adverse Effect.
	 
	 	19.17.2	 	No Environmental Claim has been commenced or (to the best of its knowledge and
belief (having made due and careful enquiry)) is threatened against it where that claim
could reasonably be expected, if determined against it, to have a Material Adverse
Effect.
	 
	 	19.17.3	 	The cost to the Borrower of compliance with Environmental Laws (including
Environmental Permits) and the cost of compliance with the recommendations

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	 	 	 	contained in the Environmental Report is adequately provided for in the
Financial Model.

	19.18	 	Good title to assets
	 
	 	 	The Borrower has a good, valid and marketable title to, or valid leases or licences of, and
all appropriate Authorisations to use, the assets necessary to carry on its business as
presently conducted.
	 
	19.19	 	Borrowing Base Assets
	 
	 	 	The Borrower will have and maintain good, valid and merchantable title to the Borrowing Base
Assets, in each case to the extent of its interest in the relevant Field, subject to the
Transaction Security.
	 
	19.20	 	Legal and beneficial ownership
	 
	 	 	Each Obligor is the sole legal and beneficial owner of the assets over which it purports to
grant Security pursuant to the Security Documents.
	 
	19.21	 	Project Documents

	 	19.21.1	 	Each Project Document delivered pursuant to Clause 4.1 (Initial conditions
precedent), to its knowledge:

	 	(a)	 	is true, complete and correct (and no other agreements or
arrangements have been entered into in respect thereof which have not been
fully disclosed to the Agent);
	 
	 	(b)	 	has not been amended or varied in any way, except as
disclosed to the Agent prior to the date of this Agreement; and
	 
	 	(c)	 	is not the subject of any material dispute which has not been
disclosed to the Agent.

	 	19.21.2	 	The Project Documents and Finance Documents constitute all material contracts
and agreements to which the Borrower is a party which relate to the ownership,
operation or management of the Borrower or the Borrowing Base Assets (or any part
thereof).

	19.22	 	Disclosure
	 
	 	 	Notwithstanding anything to the contrary in this Clause 19 (Representations), each of the
representations and warranties set out in this Clause 19 (Representations) are subject to
and qualified by any fact, matter, event or circumstance which has been specifically
disclosed in the Disclosure Letter with respect to the identified representations and
warranties in this Clause 19 (Representations) which are set out in the Disclosure Letter.
	 
	19.23	 	Repetition
	 
	 	 	To the extent originally made by the Borrower on the date of this Agreement, the Repeating
Representations are deemed to be made by the Borrower to each Finance

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	 	 	Party on the First Effective Date, the date of each Utilisation Request and the first
day of each Interest Period (by reference to the facts and circumstances then existing).

	20.	 	INFORMATION UNDERTAKINGS
	 
	 	 	The undertakings in this Clause 20 remain in force, in favour of the Finance Parties,
from the date of this Agreement for so long as any amount is outstanding under the Finance
Documents or any Commitment is in force.

	20.1	 	Financial statements
	 
	 	 	The Borrower shall supply to the Agent in sufficient copies for all the Lenders:

	 	20.1.1	 	except with respect to the Original Financial Statements, which may be provided at
any time prior to the first Utilisation, as soon as the same become available, but in
any event within one hundred and twenty days after the end of each financial year of
the Borrower, commencing with the financial year in which the first Utilisation occurs,
the audited financial statements of the Borrower, and the audited consolidated
financial statements of the Borrower (if available), for that financial year; and
	 
	 	20.1.2	 	as soon as the same become available, but in any event within sixty days after the
end of each quarter of each financial year of the Borrower, commencing with the
financial quarter in which the first Utilisation occurs, the unaudited financial
statements of the Borrower, and the audited consolidated financial statements of the
Borrower (if available), for that financial quarter.

	20.2	 	Requirements as to financial statements
	 
	 	 	The Borrower shall procure that each set of financial statements delivered pursuant to
Clause 20.1 (Financial statements) is prepared using IFRS.
	 
	20.3	 	Information: miscellaneous
	 
	 	 	The Borrower shall supply to the Agent (in sufficient copies for all the Lenders, if
the Agent so requests):

	 	20.3.1	 	all information reasonably requested by the Technical Bank relating to the Borrowing
Base Assets to the extent that such information is available to the Borrower and is
necessary or desirable in relation to the delivery of any Financial Projection or
Lenders’ Technical Report;
	 
	 	20.3.2	 	all documents dispatched by the Borrower to its shareholders generally (or any class
of them) or its creditors generally at the same time as they are dispatched;
	 
	 	20.3.3	 	promptly upon becoming aware of them, the details of any litigation,
arbitration or administrative proceedings which are current, threatened or pending
against an Obligor, and which could reasonably be expected, if adversely determined, to
have a Material Adverse Effect;

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	 	20.3.4	 	promptly upon becoming aware, details of any material dispute under
any Project Document which could reasonably be expected to have a Material Adverse
Effect;
	 
	 	20.3.5	 	promptly upon becoming aware, details of any other matters which are likely
materially and adversely to affect the initial or further development,
construction, installation or commissioning of any Borrowing Base Asset;
	 
	 	20.3.6	 	forthwith upon becoming aware, details of any event of force majeure (however
described), or any suspension of production or transportation for a period greater than
thirty days, which has occurred in respect of a Borrowing Base Asset and of which the
Borrower is aware;
	 
	 	20.3.7	 	forthwith upon becoming aware, details of material defects or material
malfunctions in respect of a Borrowing Base Asset which could reasonably be expected to
have a Material Adverse Effect, together with a summary detailing the action being
taken to remedy such defects or malfunctions;
	 
	 	20.3.8	 	promptly, such further information regarding the financial condition, business and
operations of the Borrower as any Finance Party (through the Agent) may reasonably
request; and
	 
	 	20.3.9	 	as soon as possible after the occurrence thereof, notification of all material
accidents and incidents occurring at or affecting the site of any Borrowing Base Asset
including those pertaining to the environment,

	 	 	in each case, to the extent that such information is available to the Borrower and the
Borrower is not prohibited by applicable law or contractual confidentiality restrictions
from disclosing such information to the Agent.
	 
	20.4	 	Notification of default

	 	20.4.1	 	The Borrower shall notify the Agent of any Default (and the steps, if any, being
taken to remedy it) promptly upon becoming aware of its occurrence.
	 
	 	20.4.2	 	Promptly upon a request by the Agent, the Borrower shall supply to the Agent a
certificate signed by two of its directors on its behalf certifying that no Default is
continuing (or if a Default is continuing, specifying the Default and the steps, if
any, being taken to remedy it).

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	20.5	 	Monthly Reports
	 
	 	 	In respect of each Borrowing Base Asset, the Borrower shall supply to the Agent within
fifteen Business Days after the end of each calendar month a copy of the operating report
prepared by its management relating to such Borrowing Base Asset in respect of that calendar
month, such report to include a production summary for that calendar month, details of all
drilling conducted in that calendar month and the progress of construction of any surface
units during that calendar month.
	 
	20.6	 	Know your customer checks

	 	20.6.1	 	If:

	 	(a)	 	the introduction of or any change in (or in the
interpretation, administration or application of) any law or regulation made
after the date of this Agreement;
	 
	 	(b)	 	any change in the status of the Borrower after the date
of this Agreement; or
	 
	 	(c)	 	a proposed assignment or transfer by a Lender of any of its
rights and obligations under this Agreement to a party that is not a Lender
prior to such assignment or transfer,

	 	 	 	obliges the Agent or any Lender (or, in the case of sub-clause 20.6.1(c) above, any
prospective new Lender) to comply with know your customer or similar identification
procedures in circumstances where the necessary information is not already
available to it, the Borrower shall promptly upon the request of the Agent or any
Lender supply, or procure the supply of, such documentation and other evidence as
is reasonably requested by the Agent (for itself or on behalf of any Lender) or any
Lender (for itself or, in the case of the event described in sub-clause 20.6.1(c)
above, on behalf of any prospective new Lender) in order for the Agent, such Lender
or, in the case of the event described in sub-clause 20.6.1(c) above, any
prospective new Lender to carry out and be satisfied it has complied with all
necessary know your customer or other similar checks under all applicable laws and
regulations pursuant to the transactions contemplated in the Finance Documents.
	 
	 	20.6.2	 	Each Lender shall promptly upon the request of the Agent supply, or procure the
supply of, such documentation and other evidence as is reasonably requested by the
Agent (for itself) in order for the Agent to carry out and be satisfied it has complied
with all necessary know your customer or other similar checks under all applicable laws
and regulations pursuant to the transactions contemplated in the Finance Documents.

	20.7	 	Environmental reporting

	 	20.7.1	 	The Borrower shall supply to the Agent, on or before each anniversary
following the First Effective Date, a report (in a form agreed between the

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	 	 	 	Borrower and the Agent) prepared by its management including confirmation
of the Borrower’s compliance with the Environmental Management Plan and all
Environmental Laws during the preceding 12 months, together with:

	 	(a)	 	if the Borrower is unable to provide such confirmation,
details of the relevant non-compliance and the steps being taken to remedy
such non-compliance; and
	 
	 	(b)	 	if the incorporation of any aspect of the Equator
Principles in the Environmental Management Plan would cause the
Borrower to contravene any applicable law of the People’s Republic of China
or breach any provision of any PSC, details of the relevant law or PSC
provision and the manner in which this would be contravened by compliance
with the Equator Principles.

	 	20.7.2	 	The Borrower may, with the consent of the Agent and shall, within one Month of
written request by the Agent, amend the Environmental Management Plan:

	 	(a)	 	to implement mitigation measures, corrective actions and
monitoring measures necessary to manage the environmental impacts and risks
identified in the Environmental Management Plan;
	 
	 	(b)	 	to comply with applicable Environmental Laws or the Equator
Principles (to the extent that such compliance will not cause the Borrower to
contravene any applicable law of the People’s Republic of China or breach any
provision of any PSC); or
	 
	 	(c)	 	for such other purpose as may be agreed between the Borrower
and the Agent.

	 	 	 	The Borrower shall notify the Agent within five Business Days after any such
amendment to the Environmental Management Plan is made.

	21.	 	FINANCIAL COVENANTS
	 
	21.1	 	Financial covenants
	 
	 	 	The Borrower shall ensure that, as at each Calculation Date falling six Months or more after
the date of this Agreement:

	 	21.1.1	 	the Asset Life Cover Ratio is greater than 1.95 : 1 at such date; and
	 
	 	21.1.2	 	the Debt Service Cover Ratio is greater than 1.75 : 1 at such date.

	21.2	 	Financial testing
	 
	 	 	The financial covenants set out in Clause 21.1 (Financial covenants) shall be tested by the
Technical Bank pursuant to the then current Financial Projection on each Calculation Date
and at any other time on notice to the Borrower if the Agent reasonably considers a Default
under Clause 21.1 (Financial covenants) has occurred.

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	22.	 	GENERAL UNDERTAKINGS
	 
	 	 	The undertakings in this Clause 22 (General Undertakings) are made to the Finance
Parties and remain in force from the date of this Agreement for so long as any amount is
outstanding under the Finance Documents or any Commitment is in force.
	 
	22.1	 	Authorisations
	 
	 	 	The Borrower shall promptly:

	 	22.1.1	 	obtain, comply with and do all that is necessary to maintain in full force and
effect; and
	 
	 	22.1.2	 	supply certified copies to the Agent of,

	 	 	any material Authorisation required under applicable law or regulation to enable the
Borrower to perform its obligations under the Transaction Documents to which it is a party
(where the failure to obtain and comply with such Authorisation could reasonably be expected
to have a Material Adverse Effect) and each other Authorisation required to ensure the
legality, validity, enforceability or admissibility in evidence in the jurisdiction of
incorporation of the Borrower of any Transaction Document to which it is a party.

	22.2	 	Compliance with laws

	 	22.2.1	 	The Borrower shall comply in all material respects with all laws (including
environmental laws) applicable to it and, in connection with its interest in the any
Field, shall comply with good oil and gas industry practice, if failure to comply in
either case could reasonably be expected to materially impair its ability to perform
its obligations under the Transaction Documents to which it is a party or if failure to
comply in either case could reasonably be expected to have a Material Adverse Effect.
	 
	 	22.2.2	 	The Borrower shall only engage drilling service providers which have obtained
all material Authorisations required for them to carry out their obligations under any
drilling service contract with the Borrower under applicable law and shall, within ten
Business Days, terminate the engagement of any drilling service provider which, to the
knowledge of the Borrower, has not obtained all such material Authorisations.

	22.3	 	Financial Indebtedness
	 
	 	 	The Borrower shall not incur or allow to remain outstanding any Financial Indebtedness other
than Permitted Financial Indebtedness.
	 
	22.4	 	Capital Expenditure
	 
	 	 	The Borrower shall not incur any Capital Expenditure, save for that which (a) has been taken
into account as a Permitted Payment in the most recent Financial Projection (or exceeds such
Permitted Payment by less than 10% in aggregate for such period) or (b) is to be funded from
the proceeds of a Loan and has been approved by the Technical Bank or (c) is to be funded
from amounts which have been transferred from

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	 	 	the Offshore Collection Account to the Distribution Account in accordance with
Schedule 8 (The Accounts) or from Equity.
	 
	22.5	 	Negative pledge

	 	22.5.1	 	The Borrower shall not create or permit to subsist any Security over any of its
assets.
	 
	 	22.5.2	 	The Borrower shall not:

	 	(a)	 	sell, transfer or otherwise dispose of any of its assets on
terms whereby they are or may be leased to or re-acquired by it;
	 
	 	(b)	 	sell, transfer or otherwise dispose of any of its
receivables on recourse terms;
	 
	 	(c)	 	enter into any arrangement under which money or the benefit
of a bank or other account may be applied, set-off or made subject
to a combination of accounts; or
	 
	 	(d)	 	enter into any other preferential arrangement having a similar effect,

	 	 	 	in circumstances where the arrangement or transaction is entered into primarily as
a method of raising Financial Indebtedness or of financing the acquisition of an
asset.
	 
	 	22.5.3	 	Sub-clauses 22.5.1 and 22.5.2 above do not apply to:

	 	(a)	 	any netting or set-off arrangement entered into by the
Borrower in the ordinary course of its banking arrangements for the purpose of
netting debit and credit balances;
	 
	 	(b)	 	any other lien arising by operation of law and in the
ordinary course of business
	 
	 	(c)	 	any Security referred to in Schedule 6 (Existing Security)
which is discharged in full as soon as reasonably practicable after the first
Utilisation Date and in any event by the date falling 30 days thereafter;
	 
	 	(d)	 	any Security entered into pursuant to any Finance Document; and
	 
	 	(e)	 	any Security over the SPBD-ZR Loan Account entered into by
the Borrower in favour of SPDB as Security for ZR’s obligations under the
SPDB-ZR Loan.

	22.6	 	Disposals

	 	22.6.1	 	Save as provided in this Clause 22.6 (Disposals) the Borrower shall not enter into a
single transaction or a series of transactions (whether related or not and whether
voluntary or involuntary) to sell, lease, transfer or otherwise dispose of any asset
without the written consent of Security Trustee.

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	 	22.6.2	 	Sub-clause 22.6.1 above does not apply to any sale, lease,
transfer or other disposal:

	 	(a)	 	of the Borrower’s share of production from any Borrowing Base Asset;
	 
	 	(b)	 	of assets in exchange for other assets comparable as to
type, value and quality in the ordinary course of business of the Borrower;
	 
	 	(c)	 	where the higher of the market value or consideration
receivable (when aggregated with the higher of the market value or
consideration receivable for any other sale, lease, transfer or other
disposal by the Borrower, other than any permitted under paragraph (a) above)
does not exceed $750,000 (or its equivalent in another currency or
currencies) in any financial year; or
	 
	 	(d)	 	where the Agent (acting on the instructions of the Majority
Lenders) has consented in writing to such sale, lease, transfer or other
disposal.

	22.7	 	Merger
	 
	 	 	The Borrower shall not enter into any amalgamation, demerger or merger.
	 
	22.8	 	Change of business
	 
	 	 	The Borrower shall procure that no substantial change is made to the general nature of its
business from that carried on at the date of this Agreement.
	 
	22.9	 	Environmental Compliance
	 
	 	 	The Borrower shall comply in all material respects with all Environmental Law and the
Environmental Management Plan and obtain and maintain any Environmental Permits where
failure to do so would reasonably be expected to have a Material Adverse Effect.
	 
	22.10	 	Environmental Claims
	 
	 	 	The Borrower shall inform the Agent in writing as soon as reasonably practicable upon
becoming aware of the same, if any Environmental Claim has been commenced or (to the best of
the Borrower’s knowledge and belief) is threatened against it, where the claim, if
determined against it, would reasonably be expected to have a Material Adverse Effect.
	 
	22.11	 	Loans
	 
	 	 	The Borrower shall not make or allow to remain outstanding any loans (other than Permitted
Loans) nor shall it grant any credit (save in the ordinary and usual course of business) to
or for the benefit of any person.
	 
	22.12	 	Hedging

	 	22.12.1	 	The Borrower shall comply with the requirements of Schedule 10 (Hedging).
	 
	 	22.12.2	 	Save in accordance with Schedule 10 (Hedging) the Borrower shall not enter into
any Hedging Transaction without the prior consent of the Agent.

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	22.13	 	Taxation
	 
	 	 	The Borrower shall duly and punctually pay and discharge all Taxes imposed upon it or its
assets within the time period allowed without incurring penalties (except to the extent that
(a) such payment is being contested in good faith, (b) adequate reserves are being
maintained for those Taxes and (c) such payment can be lawfully withheld).
	 
	22.14	 	Restricted Payments

	 	22.14.1	 	Except with the funds standing to the credit of the Distribution Account, the
Borrower shall not:

	 	(a)	 	declare, make or pay any dividend, charge, fee or other
distribution (or interest on any unpaid dividend, charge, fee or other
distribution) (whether in cash or in kind) on or in respect of its share
capital (or any class of its share capital);
	 
	 	(b)	 	repay or distribute any dividend or share premium reserve;
	 
	 	(c)	 	pay any management, advisory or other fee or commission to or
to the order of its shareholders;
	 
	 	(d)	 	redeem, repurchase, defease, retire or repay any of its share
capital or resolve to do so;
	 
	 	(e)	 	redeem, purchase or defease any Financial Indebtedness owed
to its shareholders;
	 
	 	(f)	 	repay, prepay or pay interest, fees or other amounts in
relation to any Subordinated Indebtedness save as permitted under the terms of
a Subordination Agreement;
	 
	 	(g)	 	make any investment in, or pay any fee or make any advance or
other kind of payment to, its shareholders; or
	 
	 	(h)	 	make any payment of the whole or any part of the Put Price,

	 	 	 	provided that the Borrower shall be entitled to perform its obligations under and
to make payments required to be made by it or permitted under the Finance
Documents.
	 
	 	22.14.2	 	In addition to and without prejudice to any other restrictions on such payments
contained in this Agreement, the Borrower shall not knowingly make any payments to, or
receive any payments from, any person having a direct or indirect legal or beneficial
interest in five per cent, or more of the Borrower’s issued share capital or any class
thereof, or any Affiliate of any such person, unless the Agent (acting reasonably) has
confirmed that all necessary ‘know you customer’ and similar checks have been carried
out in relation to such person under applicable law or regulation.

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	22.15	 	Syndication
	 
	 	 	The Borrower shall provide reasonable assistance to the Arranger in the primary syndication
of the Facility (including, without limitation, by making senior management available for
the purpose of making presentations to, or meeting, potential lending institutions and
providing all information necessary for the preparation of any information memorandum or
similar document in connection with such syndication) and will comply with all reasonable
requests for information from potential syndicate members prior to completion of
syndication.
	 
	22.16	 	The Accounts
	 
	 	 	The Accounts shall be maintained and operated in accordance with Schedule 8 (The Accounts).
	 
	22.17	 	Borrowing Base Assets
	 
	 	 	The Borrower shall not (a) permanently abandon or (b) take any action in relation to any
change in operator of any Borrowing Base Asset, except in each case with the prior written
consent of the Majority Lenders (such consent not to be unreasonably withheld).
	 
	22.18	 	Insurances

	 	22.18.1	 	The Borrower shall effect and maintain or cause to be effected and maintained from
the date of this Agreement to the Repayment Date:

	 	(a)	 	all such insurance over its assets and undertaking (i) as
would be maintained as a matter of good oil and gas industry practice (“good
industry practice”) and by an operator with a similar business to the Borrower
in the relevant jurisdiction, and (ii) as may be required to be maintained by
it by any applicable law or by the terms of any of the Project Documents to
which the Borrower is, at any time, a party; and
	 
	 	(b)	 	insurances relating to the Borrowing Base Assets covering
property damage, operator’s extra expenses (including control of well, limited
redrilling, seepage and pollution, clean-up and contamination), business
interruption and third party liability, in accordance with and as more fully
described in Part I of Schedule 14 (Insurances) as varied from time to time in
accordance with Clauses 22.18.3 and 22.18.6 (the “Material Insurances”).

	 	22.18.2	 	The Borrower shall procure that all Material Insurances shall be placed and
maintained with reputable Chinese insurers and that 70% of such insurance shall be
reinsured offshore with reinsurers which, at each inception or renewal of the relevant
Material Insurances:

	 	(a)	 	are rated at least A- by Standard & Poor’s or an equivalent
rating by A.M. Best or any other rating agency approved from time to time by
the Agent (such approval not to be unreasonably withheld or delayed) (and,

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	 	 	 	if such reinsurer has an equivalent rating from two or more such rating agencies,
all such ratings must be A- or equivalent); or

	 	(b)	 	are otherwise approved in writing by the Agent (acting reasonably and
after consultation with the Insurance Adviser) prior to the relevant inception or
renewal.

	 	22.18.3	 	With respect to the Material Insurances effected by it pursuant to Clause 22.18.1(b), the
Borrower shall maintain those endorsements listed in Part II of Schedule 14 (Insurance) to
the extent that such provisions are normally maintained from time to time as a matter of good
industry practice provided that the Borrower will notify the Agent 45 days prior to the
replacement or renewal of any Material Insurances if it believes that any of the endorsements
listed in Part II of Schedule 14 (Insurance) are not maintained as a matter of good industry
practice.
	 
	 	22.18.4	 	If any Adverse Variation is proposed to be made to the terms of any Material Insurance, the
Borrower shall promptly after becoming aware of the same, give written notice thereof to the
Agent. No Adverse Variation to any Material Insurance shall be effected or agreed by the
Borrower unless the Agent (acting reasonably in consultation with the Insurance Adviser)
notifies the Borrower in writing that such Adverse Variation is either not material to the
Finance Parties or is otherwise acceptable. The Agent will not unreasonably
withhold or delay such notification.
	 
	 	22.18.5	 	The Borrower shall procure that the Security Trustee receives a broker’s letter of
undertaking from any insurance broker acting on its behalf in relation to any placement or
renewal of the Material Insurances, substantially in the agreed form or otherwise acceptable
to the Agent (acting reasonably in consultation with the Insurance Adviser).
	 
	 	22.18.6	 	If at any time the Insurance Adviser confirms that any Material Insurance on the terms
complying with Schedule 14 (Insurance) is not available in the PRC or international insurance
or reinsurance market or is subject to premiums or endorsements which are not reasonable or
such insurance or reinsurance is not available on reasonable commercial terms, the Borrower
will (notwithstanding any provision to the contrary under the Finance Documents) not be
required to maintain such Material Insurances until such time as the Insurance Adviser
confirms that such Material Insurances have become available on reasonable commercial terms
(including without limitation cost).
	 
	 	22.18.7	 	The Borrower shall take all reasonable action to comply or procure
compliance at all times with the terms and conditions of all Material Insurances,
and use reasonable efforts to procure that nothing is at any time done, or suffered to be
done, whereby any Material Insurance may be impaired, suspended or rendered void or voidable
in whole or in part, or any claim becomes uncollectable in full or in part, including, without
limitation

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	 	 	 	complying with all of the requirements imposed on it under the Material
Insurances.
	 
	 	22.18.8	 	Subject to paragraphs 22.18.9 and 22.18.10 below, the Borrower shall have the sole
conduct of claims under the Material Insurances arising out of any loss but shall keep
the Agent informed at regular intervals (and in any event at least once every six
months while any such claim is continuing) of the progress of such claim and the
application of any resulting insurance proceeds. That information shall identify for
each claim under each Material Insurance the type of claim, the amount of the claim,
the current status of that claim and such further information relating to that claim as
the Agent may reasonably request.
	 
	 	22.18.9	 	The Borrower shall promptly supply to the Agent details of any claim made under any
Material Insurance for an amount which is, net of the applicable deductible, in excess
of $1,000,000 (or its equivalent in other currencies) per occurrence or where the
amount of the claim, net of the applicable deductible, when aggregated with all
other amounts claimed under any Material Insurances during the period of
twelve months ending on the date of such claim, exceeds $3,000,000 (or its equivalent
in other currencies).
	 
	 	22.18.10	 	The Borrower shall not negotiate, compromise or settle any claim for either:

	 	(a)	 	less than 75% of the full amount of the relevant claim; or
	 
	 	(b)	 	more than $500,000 less than the full amount of the relevant claim,
	 
	 	without the written consent of the Majority Lenders (with such consent not to be
unreasonably withheld or delayed).

	22.19	 	Project Documents

	 	22.19.1	 	The Borrower shall:

	 	(a)	 	comply in all material respects with its obligations under
each Project Document to which it is a party;
	 
	 	(b)	 	without prejudice to its ability to take emergency action in
order to preserve rights which would otherwise be lost, maintain and exercise
its rights under each Project Document to which it is a party having regard to
the interests of the Lenders under the Finance Documents;
	 
	 	(c)	 	promptly take all steps to avoid, remedy and/or mitigate any
breaches under any Project Document to which it is a party caused by it or for
which it is responsible;
	 
	 	(d)	 	not amend, modify or waive any provision of, or terminate,
any Project Document to which it is a party, without the consent of the Agent
(such consent not to be unreasonably withheld),

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	 	 	 	in each case to the extent that any failure to comply with any of
sub-paragraph (a) to and including (d) has or could reasonably be expected to have
a Material Adverse Effect.
	 
	 	22.19.2	 	The Borrower shall not enter into any agreement with its shareholders or any of its
Affiliates in a way which could be reasonably expected materially and adversely to
affect the interests of the Lenders under the Finance Documents.

	22.20	 	Access
	 
	 	 	The Borrower shall, upon reasonable notice (except where a Default has occurred and is
continuing, when no notice need be given):

	 	22.20.1	 	permit each Finance Party to examine (and copy all or extracts from) its books,
accounts, records and other documentation and/or data relating to its business and/or
assets; and
	 
	 	22.20.2	 	permit the Independent Engineer such access, to and to examine, its books, accounts,
records and other documentation and/or assets as may be necessary to enable the
preparation of Lenders’ Technical Reports by the Independent Engineer,
	 
	 	provided that in each case:

	 	(a)	 	(subject to Clause 22.28 (Confidentiality)) the above
requirements shall not require the Borrower to breach any applicable laws or
confidentiality requirements binding on it;
	 
	 	(b)	 	any such visit and/or examination is in normal business hours
and is subject to the normal health, safety and security requirements of the
Borrower applicable at the relevant time;
	 
	 	(c)	 	any such visit and/or examination shall not interfere with or
interrupt the operation of the Borrowing Base Assets; and
	 
	 	(d)	 	no more than four representatives of the Finance Parties
and/or the Independent Engineer shall be present at the relevant place of
business of the Borrower at any time.

	22.21	 	Unlawful conduct
	 
	 	 	The Borrower shall not engage, directly or indirectly, in conduct which is corrupt or
unlawful under applicable law, including promising or giving any person any undue pecuniary
or other reward for the purpose of obtaining or retaining business or any improper
advantage.
	 
	22.22	 	Confidentiality
	 
	 	 	The Borrower shall, at the request of the Agent, promptly use reasonable endeavours to
obtain a release from all obligations of confidence that apply in respect of any document,
arrangement or information that the Finance Parties may have requested in accordance with
the Finance Documents.

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	22.23	 	Payment Instructions

	 	22.23.1	 	The Borrower shall, by 31 December 2009, deliver to PetroChina Payment Instructions
in relation to all payments under the Miao 3 PSC and the Moliqing PSC.
	 
	 	22.23.2	 	The Borrower shall not, without the prior written consent of the Agent, revoke,
terminate or amend the Payment Instructions.

	22.24	 	[Intentionally blank]
	 
	22.25	 	SPA

	 	22.25.1	 	The Borrower shall make all payments required to be made by it pursuant to the
SPA in accordance with, and at the times specified in, the SPA.
	 
	 	22.25.2	 	The Borrower shall, for a period commencing on the date of this Agreement and ending
on 31 January 2008, use reasonable efforts to procure that a Termination Agreement is
signed and becomes effective by 31 January 2008.

	22.26	 	Conditions Subsequent
	 
	 	 	The Borrower shall ensure that each of the Conditions Subsequent is satisfied in accordance
with its terms.
	 
	22.27	 	Acquisitions

	 	22.27.1	 	Save as otherwise provided under the Finance Documents, the Borrower shall not,
without the prior written consent of the Majority Lenders:

	 	(a)	 	acquire a company or any shares or a business or undertaking
(or, in each case, any interest in any of them); or
	 
	 	(b)	 	incorporate a company.

	 	22.27.2	 	Clause 22.27.1 does not apply to any acquisition by the Borrower of shares in MIH in
connection with the exercise by any person entitled thereto of the Put Right.

	22.28	 	Environmental Management Plan
	 
	 	 	The Borrower shall no later than the date falling three Months after delivery of a request
by the Agent, deliver to the Agent (and, at the request of the Agent, in sufficient copies
for each of the Finance Parties), an Environmental Management Plan.
	 
	22.29	 	Amounts credited to the SPDB-ZR Loan Account
	 
	 	 	The Borrower shall ensure that not more than $10,500,000 in aggregate (or its equivalent in
RMB at the time of deposit) is credited to the SPDB-ZR Loan Account.

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	23.	 	EVENTS OF DEFAULT
	 
	 	 	Each of the events or circumstances set out in Clause 23 (Events of Default) is an Event of
Default.
	 
	23.1	 	Non-payment
	 
	 	 	The Borrower does not pay on the due date any amount payable pursuant to a Finance Document
at the place at and in the currency in which it is expressed to be payable unless:

	 	23.1.1	 	its failure to pay is caused by administrative or technical error; and
	 
	 	23.1.2	 	payment is made within three Business Days of its due date.

	23.2	 	Financial covenants
	 
	 	 	Any requirement of Clause 21 (Financial covenants) is not satisfied.
	 
	23.3	 	Other obligations

	 	23.3.1	 	The Borrower does not comply with any provision of the Finance Documents to which it
is a party (other than those referred to in Clause 23.1 (Nonpayment) and Clause 23.2
(Financial covenants)).
	 
	 	23.3.2	 	Any Obligor (other than the Borrower) does not comply with any provision of the
Finance Documents to which it is a party.
	 
	 	23.3.3	 	No Event of Default under Clause 23.3.2 above will occur with respect to a breach of
Clause 20 (Information Undertakings), Clauses 22.1 (Authorisations), 22.2 (Compliance
with laws), 22.9 (Environmental Compliance), 22.13 (Taxation), 22.18 (Insurances),
paragraphs (b) and (c) of Clause 22.19 (Project Documents), or Clauses 22.20 (Access)
and 22.22 (Confidentiality) if the failure to comply is capable of remedy and is
remedied within ten Business Days of the Agent giving notice to the Borrower or the
Borrower becoming aware of the failure to comply.
	 
	 	23.3.4	 	No Event of Default under Clause 23.3.2 above will occur if the failure to comply is
capable of remedy and is remedied within ten Business Days of the Agent giving notice
to the Borrower or the Borrower becoming aware of the failure to comply.

	23.4	 	Misrepresentation
	 
	 	 	Any representation or statement made or deemed to be made by an Obligor in the Finance
Documents or any other document delivered by or on behalf of an Obligor under or in
connection with any Finance Document is or proves to have been incorrect or misleading in
any material respect when made or deemed to be made.
	 
	23.5	 	Cross default

	 	23.5.1	 	Any Financial Indebtedness of the Borrower is not paid when due nor within any
originally applicable grace period.

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	 	23.5.2	 	Any Financial Indebtedness of the Borrower is declared to be or otherwise
becomes due and payable prior to its specified maturity or is placed on demand, in
either case as a result of an event of default (however described).
	 
	 	23.5.3	 	Any commitment for any Financial Indebtedness of the Borrower is cancelled or
suspended by a creditor of the Borrower as a result of an event of default (however
described).
	 
	 	23.5.4	 	Any creditor of the Borrower becomes entitled to declare any Financial Indebtedness
of the Borrower due and payable prior to its specified maturity or to place it on
demand or to cancel or suspend any commitment for any such Financial Indebtedness as a
result of an event of default (however described).
	 
	 	23.5.5	 	No Event of Default will occur under this Clause 23.5 (Cross default):

	 	(a)	 	if the aggregate amount of Financial Indebtedness or
commitment for Financial Indebtedness falling within 23.5.1 to 23.5.4 above
is less than $5,000,000 in aggregate (or its equivalent in any other currency
or currencies); or
	 
	 	(b)	 	as a result of a failure to pay when due any Existing Trade Credit.

	23.6	 	Insolvency
	 
	 	 	Any of the following occurs in respect of an Obligor:

	 	23.6.1	 	it is unable to pay its debts as they fall due or is insolvent;
	 
	 	23.6.2	 	it admits its inability to pay its debts as they fall due;
	 
	 	23.6.3	 	the value of its assets is less than its liabilities (taking into account contingent
and prospective liabilities);
	 
	 	23.6.4	 	it suspends making payments on any of its debts or announces an intention to do so;
	 
	 	23.6.5	 	by reason of actual or anticipated financial difficulties, it commences negotiations
with one or more of its creditors with a view to rescheduling any of its indebtedness;
or
	 
	 	23.6.6	 	a moratorium is declared in respect of any of its indebtedness.

	23.7	 	Insolvency proceedings
	 
	 	 	Any corporate action, legal proceedings or other procedure or step is taken in relation to:

	 	23.7.1	 	the suspension of payments, a moratorium of any indebtedness, winding-up,
dissolution, administration or reorganisation (by way of voluntary
arrangement, scheme of arrangement or otherwise) of an Obligor;

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	 	23.7.2	 	a composition, compromise, assignment or arrangement with any creditor of
an Obligor;
	 
	 	23.7.3	 	the appointment of a liquidator (other than in respect of a solvent liquidation of
an Obligor to which the Majority Lenders have consented), receiver, administrative
receiver, administrator, compulsory manager or other similar officer (in each case,
whether out of court or otherwise) in respect of the Borrower or any of its assets; or
	 
	 	23.7.4	 	enforcement of any Security over any asset of an Obligor,

	 	 	or any analogous procedure or step is taken in any jurisdiction.
	 
	23.8	 	Creditors’ process
	 
	 	 	Any attachment, sequestration, distress or execution affects any asset or assets of the
Borrower having an aggregate value of not less than $200,000 and is not discharged within
fifteen Business Days.
	 
	23.9	 	Cessation of business
	 
	 	 	The Borrower ceases, or threatens to cease, to carry on all or substantially all of its
business.
	 
	23.10	 	Ownership of the Borrower

	 	23.10.1	 	At any time prior to Share Exchange Closing, Far East ceases to own (legally and
beneficially) at least sixty seven per cent (67%) of the issued share capital of the
Borrower.
	 
	 	23.10.2	 	At any time from and after Share Exchange Closing:

	 	(a)	 	(prior to the discharge of the Second MIH Share Charge
pursuant to Clause 29.3.3) Far East ceases to own (legally and beneficially)
at least eighty three per cent (83%) of the issued share capital of MIH; or
	 
	 	(b)	 	(on and from the discharge of the Second MIH Share Charge
pursuant to Clause 29.3.3) Far East ceases to own (legally and beneficially)
at least sixty seven per cent (67%) of the issued share capital of MIH; or
	 
	 	(c)	 	(prior to the discharge of the Second MIH Share Charge
pursuant to Clause 29.3.3) MIH ceases to own (legally and beneficially) at
least eighty three per cent (83%) of the issued share capital of the
Borrower; or
	 
	 	(d)	 	(on and from the discharge of the Second MIH Share Charge
pursuant to Clause 29.3.3) MIH ceases to own (legally and beneficially) at
least sixty seven per cent (67%) of the issued share capital of the Borrower.

	23.11	 	Unlawfulness and invalidity

	 	23.11.1	 	It is or becomes unlawful for an Obligor to perform any of its obligations under
the Transaction Documents to which it is a party or any Security created

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	 	 	 	or expressed to be created or evidenced by the Security Documents ceases to be
effective.

	 	23.11.2	 	Any obligation or obligations of an Obligor under any Transaction Documents are not
or cease to be legal, valid, binding or enforceable and the cessation individually or
cumulatively materially and adversely affects the interests of the Lenders under the
Finance Documents.
	 
	 	23.11.3	 	Any Transaction Document ceases to be in full force and effect (other than as a
result of it lapsing following due performance by the parties of their obligations
thereunder) or any Security ceases to be legal, valid, binding, enforceable or
effective or is alleged by a party to it (other than a Finance Party) to be
ineffective.

	23.12	 	Repudiation
	 
	 	 	An Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance
Document, any party to a PSC repudiates it or evidences an intention to repudiate it or
PetroChina repudiates a Payment Instruction or evidences an intention to repudiate a
Payment Instruction.
	 
	23.13	 	Qualification of Accounts
	 
	 	 	The audited accounts of the Borrower delivered pursuant to Clause 20.1.1 (Financial
statements) are qualified by the auditors in any respect which has or could reasonably be
expected to have a Material Adverse Effect.
	 
	23.14	 	Expropriation
	 
	 	 	The authority or ability of the Borrower to conduct its business is limited or wholly or
substantially curtailed by any seizure, expropriation, nationalisation, intervention,
restriction or other action by or on behalf of any governmental, regulatory or other
authority or other person in relation to the Borrower or all or a material part of its
assets.
	 
	23.15	 	Borrowing Base Assets
	 
	 	 	All or any part of a Borrowing Base Asset is impaired, abandoned or nationalised, or
production from a Borrowing Base Asset is interrupted or impaired, in each case to an
extent that the Majority Lenders believe could reasonably be expected to have a Material
Adverse Effect.
	 
	23.16	 	Management and key personnel
	 
	 	 	Any change to the persons carrying out the roles of Chairman or CEO of the Borrower occurs
without the prior written consent of the Agent (acting on the instructions of the Majority
Lenders.
	 
	23.17	 	Litigation
	 
	 	 	Any litigation, arbitration, administrative, governmental, regulatory or other official
investigation, proceeding or dispute is commenced or threatened in relation to the
Transaction Documents or the transactions contemplated in the Transaction Documents

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	 	 	or against the Borrower or its assets which has or is reasonably likely to have a Material
Adverse Effect.
	 
	23.18	 	Material adverse change
	 
	 	 	Any event or circumstance occurs which the Majority Lenders reasonably believe could be
expected to have a Material Adverse Effect.
	 
	23.19	 	Security
	 
	 	 	Any Security Document does not or ceases to provide the Finance Parties the Security
intended to be created thereby, or any part of the Security created pursuant to any
Security Document lapses, becomes impaired, does not or ceases to have first priority, is
or becomes subject to any pari passu or prior ranking Security, ceases to be in full force
and effect in accordance with its terms or ceases to constitute, to the extent provided in
the Security Documents, valid and perfected Security over the Charged Property provided
that no Event of Default shall occur under this Clause 23.19 if the circumstances referred
to above are capable of remedy and the Security Document in question is replaced in a
manner satisfactory to the Majority Lenders (acting reasonably) by the date falling 30 days
after such circumstances first occurred.
	 
	23.20	 	Payment Instructions
	 
	 	 	At any time after the date falling 60 days after a Payment Instruction has been delivered to
it, PetroChina does not or is or becomes unable to make any payment in accordance with the
terms of such Payment Instruction provided that no Event of Default shall occur under this
Clause if (i) PetroChina fails to pay any amount due and payable by it in accordance with
the relevant Payment Instruction and the amount owing but not paid is subsequently paid in
full within 30 days or (ii) such circumstances are (if capable of remedy) otherwise remedied
in a manner satisfactory to the Majority Lenders (acting reasonably) by the date falling 30
days after such circumstances first occurred.
	 
	23.21	 	Repayment of Interim Loan
	 
	 	 	The Interim Loan is not repaid in full by 30 June 2009.
	 
	23.22	 	Acceleration
	 
	 	 	On and at any time after the occurrence of an Event of Default which is continuing the
Agent may, and shall if so directed in accordance with Clause 34 (Entitlement to Enforce),
by notice to the Borrower:

	 	23.22.1	 	cancel all or any part of the Commitments whereupon they shall immediately be
cancelled;
	 
	 	23.22.2	 	declare that all or part of the Loans, together with accrued interest, and all
other amounts accrued or outstanding under the Finance Documents be immediately due
and payable, whereupon they shall become immediately due and payable;

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	 	23.22.3	 	declare that all or part of the Loans be payable on demand, whereupon they
shall immediately become payable on demand by the Agent on the instructions of the
Majority Lenders;
	 
	 	23.22.4	 	require the Security Trustee to take action to enforce all or any part of the
Security under the Security Documents, whereupon any such action shall be taken;
and/or
	 
	 	23.22.5	 	exercise all other rights under any Finance Document and/or all other remedies
available at law.

	23.23	 	Make-whole
	 
	 	 	If, pursuant to Clause 23.22 (Acceleration), the Borrower is required to repay the whole or
any part of the Loans before the date falling 24 Months after the date of this Agreement,
it shall, at the same time that it makes such repayment, pay to the Agent, for the account
of the Lenders, a fee in dollars equal to zero point five (0.5%) of the amount repaid.

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SECTION 9

CHANGES TO PARTIES

	24.	 	CHANGES TO THE LENDERS

	24.1	 	Assignments and transfers by the Lenders
	 
	 	 	Subject to this Clause 24 (Changes to the Lenders), a Lender (the “Existing Lender”) may:

	 	24.1.1	 	assign any of its rights; or
	 
	 	24.1.2	 	transfer by novation any of its rights and obligations,

	 	 	to another bank or financial institution or to a trust, fund or other entity which is
regularly engaged in or established for the purpose of making, purchasing or investing in
loans, securities or other financial assets (the “New Lender”).
	 
	24.2	 	Conditions of assignment or transfer

	 	24.2.1	 	The consent of the Borrower or any other person is not required for an assignment of
any of its rights or transfer by novation of any of its rights and obligations by a
Lender.
	 
	 	24.2.2	 	An assignment will only be effective on execution by the Agent and the Security
Trustee of an Accession Undertaking delivered by the New Lender and performance by the
Agent and the Security Trustee of all “know your customer” or other checks relating to
any person that it requires to carry out in relation to such assignment to a New
Lender, the completion of which the Agent and the Security Trustee shall promptly
notify to the Existing Lender and the New Lender.
	 
	 	24.2.3	 	A transfer will only be effective if the procedure set out in Clause 24.5 (Procedure
for transfer) is complied with.
	 
	 	24.2.4	 	If:

	 	(a)	 	a Lender assigns or transfers any of its rights or
obligations under the Finance Documents or changes its Facility Office; and
	 
	 	(b)	 	as a result of circumstances existing at the date the
assignment, transfer or change occurs, the Borrower would be obliged to make a
payment to the New Lender or Lender acting through its new Facility Office
under Clause 14 (Tax gross-up and indemnities) or Clause 15 (Increased costs),

	 	 	 	then the New Lender or Lender acting through its new Facility Office is only
entitled to receive payment under those Clauses to the same extent as the Existing
Lender or Lender acting through its previous Facility Office would have been if
the assignment, transfer or change had not occurred.

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	24.3	 	Assignment or transfer fee
	 
	 	 	The New Lender and any new Hedge Counterparty shall, on the date upon which an assignment
or transfer takes effect, pay to the Agent (for its own account) a fee of $1,000.

	24.4	 	Limitation of responsibility of Existing Lenders

	 	24.4.1	 	Unless expressly agreed to the contrary, an Existing Lender makes no representation
or warranty and assumes no responsibility to a New Lender for:

	 	(a)	 	the legality, validity, effectiveness, adequacy or
enforceability of the Finance Documents or any other documents;
	 
	 	(b)	 	the financial condition of the Borrower;
	 
	 	(c)	 	the performance and observance by the Borrower of its
obligations under the Finance Documents or any other documents; or
	 
	 	(d)	 	the accuracy of any statements (whether written or oral)
made in or in connection with any Finance Document or any other document,

	 	 	 	and any representations or warranties implied by law are excluded.
	 
	 	24.4.2	 	Each New Lender confirms to the Existing Lender and the other Finance
Parties that it:

	 	(a)	 	has made (and shall continue to make) its own independent
investigation and assessment of the financial condition and affairs of the
Borrower and its related entities in connection with its participation in
this Agreement and has not relied exclusively on any information provided to
it by the Existing Lender in connection with any Finance Document; and
	 
	 	(b)	 	will continue to make its own independent appraisal of the
creditworthiness of the Borrower and its related entities whilst any amount
is or may be outstanding under the Finance Documents or any Commitment is in
force.

	 	24.4.3	 	Nothing in any Finance Document obliges an Existing Lender to:

	 	(a)	 	accept a re-transfer from a New Lender of any of the rights
and obligations assigned or transferred under this Clause 24 (Changes to the
Lenders); or
	 
	 	(b)	 	support any losses directly or indirectly incurred by the
New Lender by reason of the non-performance by the Borrower of its
obligations under the Finance Documents or otherwise.

	24.5	 	Procedure for transfer

	 	24.5.1	 	Subject to the conditions set out in Clause 24.2 (Conditions of assignment or
transfer) a transfer is effected in accordance with sub-clause 24.5.2 below

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	 	 	 	when the Agent executes an otherwise duly completed Transfer Certificate delivered by the
Existing Lender and the New Lender and the Agent and the Security Trustee execute an
otherwise duly completed Accession Undertaking delivered by the new Lender. The Agent
(and, in the case of an Accession Undertaking, the Security Trustee) shall as soon as
reasonably practicable after receipt by it of a duly completed Transfer Certificate and a
duly completed Accession Undertaking appearing on its face to comply with the terms of
this Agreement and delivered in accordance with the terms of this Agreement (and after
performance of all “know your customer” or other checks relating to any person that it
requires to carry out in relation to such transfer to a New Lender) execute that Transfer
Certificate and Accession Undertaking. Each Party (other than the Existing Lender, the
New Lender (and, in the case of an Accession Undertaking, the Security Trustee))
irrevocably authorises the Agent to execute any such Transfer Certificate and Accession
Undertaking on its behalf.
	 
	 	24.5.2	 	On the Transfer Date:

	 	(a)	 	to the extent that in the Transfer Certificate the Existing Lender seeks
to transfer by novation its rights and obligations under the Finance Documents and
in respect of the Transaction Security, the Borrower and the Existing Lender shall
be released from further obligations towards one another under the Finance Documents
and their respective rights against one another under the Finance Documents shall be
cancelled (being the “Discharged Rights and Obligations”);
	 
	 	(b)	 	the Borrower and the New Lender shall assume obligations towards one
another and/or acquire rights against one another which differ from the Discharged
Rights and Obligations only insofar as the Borrower and the New Lender have assumed
and/or acquired the same in place of the Borrower and the Existing Lender;
	 
	 	(c)	 	the Agent, the Arranger, the Security Trustee, the New Lender and other
Lenders shall acquire the same rights and assume the same obligations between
themselves and in respect of the Transaction Security as they would have acquired
and assumed had the New Lender been an Original Lender with the rights and/or
obligations acquired or assumed by it as a result of the transfer and to that extent
the Agent, the Arranger, the Security Trustee and the Existing Lender shall each be
released from further obligations to each other under the Finance Documents; and
	 
	 	(d)	 	the New Lender shall become a Party as a “Lender”.

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	24.6	 	Copy of Transfer Certificate to Borrower
	 
	 	 	The Agent shall, as soon as reasonably practicable after it has executed a Transfer
Certificate, send to the Borrower a copy of that Transfer Certificate.

	24.7	 	Disclosure of information
	 
	 	 	Any Creditor may disclose to any of its Affiliates, any other Finance Party and any other
person:

	 	24.7.1	 	to (or through) whom that Creditor assigns or transfers (or may potentially assign
or transfer) all or any of its rights and obligations under this Agreement;
	 
	 	24.7.2	 	with (or through) whom that Creditor enters into (or may potentially enter into) any
sub-participation in relation to, or any other transaction under which payments are to
be made by reference to, this Agreement or the Borrower; or
	 
	 	24.7.3	 	to whom, and to the extent that, information is required to be disclosed by any
applicable law or regulation,

	 	 	any information about the Borrower and the Finance Documents as that Creditor shall consider
appropriate if, in relation to sub-clauses 24.7.1 and 24.7.2 above, the person to whom the
information is to be given has entered into a confidentiality undertaking.
	 
	25.	 	CHANGES TO THE HEDGE COUNTERPARTIES
	 
	 	 	A Hedge Counterparty may assign any of its rights and benefits or transfer by novation any
of its rights, benefits and obligations in respect of the Hedge Agreements to which it is a
party to another Hedge Counterparty if the conditions set out in Clause 33.1 (Identity of
Hedge Counterparties) have been satisfied and the Agent and the Security Trustee have
executed an otherwise duly completed Accession Undertaking delivered by the relevant
assignee or transferee.
	 
	26.	 	CHANGES TO THE BORROWER
	 
	 	 	The Borrower may not assign any of its rights or transfer or otherwise dispose of any of its
rights or obligations under the Finance Documents.

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SECTION 10

THE FINANCE PARTIES

	27.	 	THE AGENT, THE ARRANGER AND THE TECHNICAL BANK

	27.1	 	Appointment of the Agent

	 	27.1.1	 	Each other Finance Party appoints the Agent to act as its agent under and in
connection with the Finance Documents.
	 
	 	27.1.2	 	Each other Finance Party authorises the Agent to exercise the rights, powers,
authorities and discretions specifically given to the Agent under or in connection
with the Finance Documents together with any other incidental rights, powers,
authorities and discretions.

	27.2	 	Duties of the Agent

	 	27.2.1	 	The Agent shall promptly forward to a Party the original or a copy of any document
which is delivered to the Agent for that Party by any other Party.
	 
	 	27.2.2	 	Except where a Finance Document specifically provides otherwise, the Agent is not
obliged to review or check the adequacy, accuracy or completeness of any document it
forwards to another Party.
	 
	 	27.2.3	 	If the Agent receives notice from a Party referring to this Agreement, describing a
Default and stating that the circumstance described is a Default, it shall promptly
notify the other Finance Parties.
	 
	 	27.2.4	 	If the Agent is aware of the non-payment of any principal, interest, commitment fee
or other fee payable to a Finance Party (other than the Agent or the Arranger) under
this Agreement it shall promptly notify the other Finance Parties.
	 
	 	27.2.5	 	The Agent’s duties under the Finance Documents are solely mechanical and
administrative in nature.

	27.3	 	Role of the Technical Bank
	 
	 	 	Each other Finance Party appoints the Technical Bank to act as technical bank under this
Agreement. Except for its obligations specifically set out in this Agreement, the Technical
Bank has no obligations of any kind to any Party under or in connection with any Finance
Document.
	 
	27.4	 	Role of the Arranger
	 
	 	 	Except as specifically provided in the Finance Documents, the Arranger has no obligations
of any kind to any other Party under or in connection with any Finance Document.
	 
	27.5	 	No fiduciary duties

	 	27.5.1	 	Nothing in this Agreement constitutes the Agent, the Technical Bank or the Arranger
as a trustee or fiduciary of any other person.

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	 	27.5.2	 	Neither the Agent, the Technical Bank nor the Arranger shall be bound to
account to any Lender for any sum or the profit element of any sum received by it
for its own account.

	27.6	 	Business with the Borrower
	 
	 	 	The Agent, the Technical Bank and the Arranger may accept deposits from, lend money to and
generally engage in any kind of banking or other business with the Borrower without consent
from any Party.
	 
	27.7	 	Rights and discretions of the Agent, the Arranger and the Technical Bank

	 	27.7.1	 	The Agent and the Technical Bank may rely on:

	 	(a)	 	any representation, notice or document believed by it to
be genuine, correct and appropriately authorised and shall have no duty to
verify any signature on any document; and
	 
	 	(b)	 	any statement made by a director, authorised signatory or
employee of any person regarding any matters which may reasonably be assumed
to be within his knowledge or within his power to verify.

	 	27.7.2	 	The Agent may assume (unless it has received notice to the contrary in its
capacity as agent for the Lenders) that:

	 	(a)	 	no Default has occurred (unless it has actual knowledge of a
Default arising under Clause 23.1 (Non-payment)); and
	 
	 	(b)	 	any right, power, authority or discretion vested in any
Party or the Majority Lenders has not been exercised.

	 	27.7.3	 	The Agent may engage, pay for and rely on the advice or services of any lawyers,
accountants, surveyors or other experts.
	 
	 	27.7.4	 	The Agent and the Technical Bank may act in relation to the Finance Documents
through their respective personnel and agents.
	 
	 	27.7.5	 	The Agent may disclose to any other Party any information it reasonably believes it
has received as agent under this Agreement.
	 
	 	27.7.6	 	Notwithstanding any other provision of any Finance Document to the contrary, neither
the Agent, the Technical Bank nor the Arranger is obliged to do or omit to do anything
if it would or might in its reasonable opinion constitute a breach of any law or
regulation or a breach of a fiduciary duty or duty of confidentiality.

	27.8	 	Majority Lenders’ instructions

	 	27.8.1	 	Unless a contrary indication appears in a Finance Document, and subject in
particular to Clauses 34 (Entitlement to Enforce) and 47 (Amendments and Waivers), the
Agent shall (i) exercise any right, power, authority or discretion vested in it as
Agent in accordance with any instructions given to it by the

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	 	 	 	Majority Lenders (or, if so instructed by the Majority Lenders, refrain from
exercising any right, power, authority or discretion vested in it as Agent) and
(ii) not be liable for any act (or omission) if it acts (or refrains from taking
any action) in accordance with an instruction of the Majority Lenders.
	 
	 	27.8.2	 	Unless a contrary indication appears in a Finance Document, and subject in particular
to Clauses 34 (Entitlement to Enforce) and 47 (Amendments and Waivers), any
instructions given by the Majority Lenders will be binding on all the Finance Parties.
	 
	 	27.8.3	 	The Agent may refrain from acting in accordance with the instructions of the
Majority Lenders until it has received such security as it may require for any cost,
loss or liability (together with any associated VAT) which it may incur in complying
with the instructions.
	 
	 	27.8.4	 	In the absence of instructions from the Majority Lenders, the Agent may act (or
refrain from taking action) as it considers to be in the best interest of the Lenders.
	 
	 	27.8.5	 	The Agent is not authorised to act on behalf of a Lender (without first obtaining
that Lender’s consent) in any legal or arbitration proceedings relating to any Finance
Document.

	27.9	 	Responsibility for documentation
	 
	 	 	None of the Agent, the Technical Bank and the Arranger:

	 	27.9.1	 	is responsible for the adequacy, accuracy and/or completeness of any information
(whether oral or written) supplied by the Agent, the Technical Bank, the Arranger, the
Borrower or any other person given in or in connection with any Finance Document; or
	 
	 	27.9.2	 	is responsible for the legality, validity, effectiveness, adequacy or enforceability
of any Finance Document or any other agreement, arrangement or document entered into,
made or executed in anticipation of or in connection with any Finance Document.

	27.10	 	Exclusion of liability

	 	27.10.1	 	Without limiting sub-clause 27.10.2 below, neither the Agent nor the Technical Bank
will be liable for any action taken by it under or in connection with any Finance
Document, unless directly caused by its gross negligence or wilful misconduct.
	 
	 	27.10.2	 	No Party (other than the Agent) may take any proceedings against any officer,
employee or agent of the Agent in respect of any claim it might have against the Agent
or in respect of any act or omission of any kind by that officer, employee or agent in
relation to any Finance Document.

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	 	27.10.3	 	The Agent will not be liable for any delay (or any related consequences) in
crediting an account with an amount required under the Finance Documents to be paid
by the Agent if the Agent has taken all necessary steps as soon as reasonably
practicable to comply with the regulations or operating procedures of any
recognised clearing or settlement system used by the Agent for that purpose.

	27.11	 	Lenders’ indemnity to the Agent
	 
	 	 	Each Lender shall (in proportion to its share of the Total Commitments or, if the Total
Commitments are then zero, to its share of the Total Commitments immediately prior to their
reduction to zero) indemnify the Agent, within three Business Days of demand, against any
cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent’s gross
negligence or wilful misconduct) in acting as Agent under the Finance Documents (unless the
Agent has been reimbursed by the Borrower pursuant to a Finance Document).

	27.12	 	Resignation of the Agent and the Technical Bank

	 	27.12.1	 	Each of the Agent and the Technical Bank may resign and appoint one of its
Affiliates as successor by giving notice to the other Finance Parties and the
Borrower.
	 
	 	27.12.2	 	Alternatively each of the Agent and the Technical Bank may resign by giving notice
to the other Finance Parties and the Borrower, in which case the Majority Lenders
(after consultation with the Borrower) may appoint a successor Agent or Technical Bank
(as the case may be).
	 
	 	27.12.3	 	If the Majority Lenders have not appointed a successor Agent or Technical Bank in
accordance with sub-clause 27.12.2 above within thirty days after notice of resignation
was given, the Agent or the Technical Bank (after consultation with the Borrower) may
appoint a successor Agent or Technical Bank.
	 
	 	27.12.4	 	The retiring Agent or Technical Bank shall, at its own cost, make available to the
successor Agent or Technical Bank such documents and records and provide such
assistance as the successor Agent or Technical Bank may reasonably request for the
purposes of performing its functions as Agent or Technical Bank under the Finance
Documents.
	 
	 	27.12.5	 	The Agent’s or the Technical Bank’s resignation notice shall only take effect upon
the appointment of a successor.
	 
	 	27.12.6	 	The appointment of a successor shall only take effect on the date on which an
otherwise duly completed Accession Undertaking delivered by the successor Agent or
Technical Bank is executed by the retiring Agent or Technical Bank (as the case may be)
and the Security Trustee.
	 
	 	27.12.7	 	Upon the appointment of a successor, the retiring Agent or Technical Bank shall be
discharged from any further obligation in respect of the Finance

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	 	 	 	Documents but shall remain entitled to the benefit of this Clause 27 (Role of the
Agent, the Arranger and the Technical Bank). Its successor and each of the other
Parties shall have the same rights and obligations amongst themselves as they would
have had if such successor had been an original Party.

	27.13	 	Confidentiality

	 	27.13.1	 	In acting as agent for the Finance Parties, the Agent shall be regarded as acting
through its agency division which shall be treated as a separate entity from any other
of its divisions or departments.
	 
	 	27.13.2	 	If information is received by another division or department of the Agent, it may
be treated as confidential to that division or department and the Agent shall not be
deemed to have notice of it.

	27.14	 	Relationship with the Lenders

	 	27.14.1	 	The Agent may treat each Lender as a Lender, entitled to payments under this
Agreement and acting through its Facility Office unless it has received not less than
five Business Days prior notice from that Lender to the contrary in accordance with
the terms of this Agreement.

	27.15	 	Credit appraisal by the Lenders
	 
	 	 	Without affecting the responsibility of the Borrower for information supplied by it or on
its behalf in connection with any Finance Document, each Lender confirms to the Agent and
the Arranger that it has been, and will continue to be, solely responsible for making its
own independent appraisal and investigation of all risks arising under or in connection
with any Finance Document including:

	 	27.15.1	 	the financial condition, status and nature of the Borrower;
	 
	 	27.15.2	 	the legality, validity, effectiveness, adequacy or enforceability of any Finance
Document and any other agreement, arrangement or document entered into, made or
executed in anticipation of, under or in connection with any Finance Document;
	 
	 	27.15.3	 	whether that Lender has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other
agreement, arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document; and
	 
	 	27.15.4	 	the adequacy, accuracy and/or completeness of any other information provided by the
Agent, any Party or by any other person under or in connection with any Finance
Document, the transactions contemplated by the Finance Documents or any other
agreement, arrangement or document entered into, made or executed in anticipation of,
under or in connection with any Finance Document.

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	27.16	 	Deduction from amounts payable by the Agent
	 
	 	 	If any Party owes an amount to the Agent under the Finance Documents the Agent may, after
giving notice to that Party, deduct an amount not exceeding that amount from any payment to
that Party which the Agent would otherwise be obliged to make under the Finance Documents
and apply the amount deducted in or towards satisfaction of the amount owed. For the
purposes of the Finance Documents that Party shall be regarded as having received any amount
so deducted.
	 
	27.17	 	Instructions to Security Trustee
	 
	 	 	The Agent shall inform the Security Trustee promptly upon the Secured Obligations being
discharged in full and the Borrower having no further actual or contingent obligation under
the Finance Documents.

	28.	 	THE OFFSHORE ACCOUNT BANK
	 
	28.1	 	No Agency
	 
	 	 	It is hereby agreed that the Offshore Account Bank shall be responsible for performing the
functions of an account bank expressly mentioned herein and the Offshore Account Bank shall
not, nor shall it be construed to be, the agent or trustee of any Finance Party.
	 
	28.2	 	Rights of the Offshore Account Bank
	 
	 	 	The Offshore Account Bank may:

	 	28.2.1	 	engage and pay for the advice and services of any lawyers, accountants or other
experts whose advice or services may to it seem necessary, expedient or desirable and
rely upon any advice so obtained;
	 
	 	28.2.2	 	rely as to any matters of fact which might reasonably be expected to be within the
knowledge of any other party to any Finance Document upon a certificate signed by or
on behalf of such party;
	 
	 	28.2.3	 	rely upon any communication or document believed by it to be genuine; and
	 
	 	28.2.4	 	assume that no Default or Event of Default has occurred and that no other party to
any Finance Document is in breach of or default under its obligations thereunder,
unless it has actual knowledge or actual notice to the contrary.

	28.3	 	Excluded Obligations
	 
	 	 	Notwithstanding anything to the contrary expressed or implied herein, the Offshore Account
Bank shall not:

	 	28.3.1	 	be bound to enquire as to the occurrence or otherwise of any Default or Event of
Default or the performance by any other party to any of the Finance Documents of its
obligations thereunder;
	 
	 	28.3.2	 	be bound to exercise any right, power or discretion vested in the Offshore Account
Bank under this Agreement unless so instructed by the Agent;

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	 	28.3.3	 	be bound to account to any other party hereto for any sum or the profit
element of any sum received by it for its own account;
	 
	 	28.3.4	 	be bound to disclose to any other person any information relating to any other
person;
	 
	 	28.3.5	 	be under any fiduciary duty towards any other party hereto or under any obligations
other than those for which express provision is made in the Finance Documents; and
	 
	 	28.3.6	 	be liable under this Agreement or any other Finance Document, to any person for any
delay or failure to act:

	 	(a)	 	during any period as a result of time differences or
communication difficulties, other than by reason of its gross negligence or
wilful misconduct; or
	 
	 	(b)	 	where such failure is the result of any act or omission on
the part of any other person.

	28.4	 	Indemnification of the Offshore Account Bank
	 
	 	 	Save and to the extent that the same are recovered from the Borrower, each Lender shall,
from time to time within three Business Days of demand by the Agent, indemnify the Offshore
Account Bank, in proportion to its share of the Total Commitments at the time of such demand
against any and all costs, claims, losses, expenses (including legal fees) and liabilities
together with any VAT thereon which the Offshore Account Bank may incur, otherwise than by
reason of its own gross negligence or wilful misconduct, in acting in its capacity as an
account bank under the Finance Documents or otherwise in the performance of its obligations
thereunder.

	28.5	 	Exclusion of the Offshore Account Bank’s Liability
	 
	 	 	The Offshore Account Bank does not accept any responsibility for the accuracy and/or
completeness of any information supplied in connection with any Finance Document or for the
legality, validity, effectiveness, adequacy or enforceability of any Finance Document and
shall not be under any liability as a result of taking or omitting to take any action in
relation to the Offshore Accounts, save in the case of gross negligence or wilful
misconduct.

	28.6	 	No Actions by the Offshore Account Bank
	 
	 	 	Each of the other Parties agrees that it will not assert or seek to assert against any
director, officer or employee of the Offshore Account Bank any claim it might have against
the Offshore Account Bank in respect of the matters referred to in Clause 28.5 (Exclusion of
the Offshore Account Bank’s Liability).

	28.7	 	Business of the Offshore Account Bank
	 
	 	 	The Offshore Account Bank may accept deposits from, lend money to and generally engage in
any kind of lending or other business with any party to any Finance Document.

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	28.8	 	Cessation by the Offshore Account Bank
	 
	 	 	The Offshore Account Bank may at any time (without assigning any reason therefor) notify
the Agent and the Borrower in writing that it wishes to cease to be the Offshore Account
Bank hereunder and, upon receipt of such notice, the Agent may, following consultation with
the Borrower, nominate another Lender as a successor to the Offshore Account Bank.
	 
	28.9	 	Substitution of the Offshore Account Bank
	 
	 	 	Either:

	 	28.9.1	 	the Agent may and, if so instructed by the Majority Lenders, shall upon reasonable
grounds and with the prior written consent of the Borrower (such consent not to be
unreasonably withheld or delayed); or
	 
	 	28.9.2	 	the Borrower may upon reasonable grounds and with the prior written consent of the
Agent (such consent not to be unreasonably withheld or delayed),

	 	 	remove the Offshore Account Bank from its appointment hereunder at any time by giving not
less than fifteen days’ prior written notice to that effect to the Offshore Account Bank,
provided that:

	 	(a)	 	the removal of the Offshore Account Bank shall not be
effective until a successor is appointed in accordance with Clause 28.10
(Successor Offshore Account Bank); and
	 
	 	(b)	 	such successor Offshore Account Bank shall be a Lender.

	28.10	 	Successor Offshore Account Bank

	 	 	If a successor to the Offshore Account Bank is nominated under the provisions of Clause 28.8
(Cessation by the Offshore Account Bank) or Clause 28.9 (Substitution of the Offshore
Account Bank):

	 	28.10.1	 	the successor Offshore Account Bank shall accede to this Agreement on the date on
which an otherwise duly completed Accession Undertaking delivered by the successor
Offshore Account Bank is executed by the Agent and  the  Security Trustee;
	 
	 	28.10.2	 	the Offshore Account Bank shall (upon transfer to the successor Offshore Account
Bank of the balance on the Offshore Accounts maintained with it,  the  establishment by
the successor of new Offshore Accounts for the purposes of this Agreement and the
perfection of the Security under the Charge over Accounts in relation to such new
Offshore Accounts, in each case to the satisfaction of the Security Trustee) cease to
have any obligation hereunder in such capacity in relation to the Offshore Accounts
(but without prejudice to any accrued liabilities under this Agreement) but shall
remain entitled to the benefit of the provisions of this Clause 28.10 (Successor
Offshore Account Bank); and

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	 	28.10.3	 	the successor to the Offshore Account Bank and each of the other Parties
shall have the same rights and obligations amongst themselves as they would have
had if such successor to the Offshore Account Bank has been an original party
hereto.

	29.	 	THE SECURITY TRUSTEE

	29.1	 	Trust

	 	29.1.1	 	The Security Trustee declares that it shall hold the Transaction Security on trust
for the Secured Parties on the terms contained in this Agreement.
	 
	 	29.1.2	 	Each of the parties to this Agreement agrees that the Security Trustee shall have
only those duties, obligations and responsibilities expressly specified in this
Agreement or in the Security Documents (and no others shall be implied).

	29.2	 	No independent power

	 	 	The Secured Parties shall not have any independent power to enforce, or have recourse to,
any of the Transaction Security or to exercise any rights or powers arising under the
Security Documents except through the Security Trustee.

	29.3	 	Releases

	 	29.3.1	 	[Intentionally blank]
	 
	 	29.3.2	 	Upon any disposal of any of the Charged Property:

	 	(a)	 	pursuant to the enforcement of the Transaction Security by a
Receiver or Delegate or the Security Trustee; or
	 
	 	(b)	 	if that disposal is permitted under the Finance Documents,

	 	 	 	the Security Trustee shall (at the cost of the Borrower), on direction by the Agent
release that property from the Transaction Security.
	 
	 	29.3.3	 	If the Security Trustee is instructed by the Agent that the Agent is satisfied
that:

	 	(a)	 	the ZR Loan has been repaid or prepaid such that the
outstanding amount of the ZR Loan is at least $50,000,000 less than it was at
the date of this Agreement; or
	 
	 	(b)	 	the Borrower has received at least $50,000,000 in
subscription monies from third parties in connection with any issuance and
allotment of shares in the Borrower to such third parties; or

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	 	(c)	 	the amount of any repayment or prepayment referred to in paragraph (a),
when aggregated with the amount of any subscription monies referred to in
paragraph (b) received by the Borrower, is at least $50,000,000,

	 	 	 	the Security Trustee shall release, without recourse or warranty, the Security
constituted by the Second MIH Share Charge and the rights of the Security Trustee
under the Second MIH Share Charge.

	29.4	 	Security Trustee’s instructions
	 
	 	 	The Security Trustee shall:

	 	29.4.1	 	unless a contrary indication appears in this Agreement, act in accordance with any
instructions given to it by the Agent and shall be entitled to assume that (i) any
instructions received by it from the Agent are duly given in accordance with the terms
of the Finance Documents and (ii) unless it has received actual notice of revocation,
that those instructions or directions have not been revoked;
	 
	 	29.4.2	 	be entitled to request instructions, or clarification of any direction, from the
Agent as to whether, and in what manner, it should exercise or refrain from exercising
any rights, powers and discretions and the Security Trustee may refrain from acting
unless and until those instructions or clarification are received by it; and
	 
	 	29.4.3	 	be entitled to carry out all dealings with the Secured Parties through their Agent
and may give to the Agent any notice or other communication required to be given by the
Security Trustee to the Secured Parties.

	29.5	 	Security Trustee’s actions
	 
	 	 	Subject to the provisions of Clause 29.4 (Security Trustee’s Instructions):

	 	29.5.1	 	the Security Trustee may, in the absence of any instructions to the contrary, take
such action in the exercise of any of its powers and duties under the Finance
Documents which in its absolute discretion it considers to be for the protection and
benefit of all the Secured Parties; and
	 
	 	29.5.2	 	at any time after receipt by the Security Trustee of notice from the Agent directing
the Security Trustee to exercise all or any of its rights, remedies, powers or
discretions under any of the Finance Documents, the Security Trustee may, and shall if
so directed by the Agent, take any action as in its sole discretion it thinks fit to
enforce the Transaction Security.

	29.6	 	Security Trustee’s discretions
	 
	 	 	The Security Trustee may:

	 	29.6.1	 	assume (unless it has received actual notice to the contrary from the Agent in its
capacity as trustee for the Secured Parties or has, if it is also the Agent, become
aware in its capacity as Agent) that (i) no Default has occurred and

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	 	 	 	the Borrower is not in breach of or defaulting under its obligations under any of
the Finance Documents and (ii) any right, power, authority or discretion vested
by any Finance Document in any person has not been exercised;
	 
	 	29.6.2	 	if it receives any instructions or directions from the Agent to take any action in
relation to the Transaction Security, assume that all applicable conditions under the
Finance Documents for taking that action have been satisfied;
	 
	 	29.6.3	 	engage, pay for and rely on the advice or services of any lawyers, accountants,
surveyors or other experts (whether obtained by the Security Trustee or by any other
Secured Party) whose advice or services may at any time seem necessary, expedient or
desirable;
	 
	 	29.6.4	 	rely upon any communication or document believed by it to be genuine and, as to any
matters of fact which might reasonably be expected to be within the knowledge of a
Secured Party, any Lender or the Borrower, upon a certificate signed by or on behalf
of that person; and
	 
	 	29.6.5	 	refrain from acting in accordance with the instructions of the Agent (including
bringing any legal action or proceeding arising out of or in connection with the
Finance Documents) until it has received any indemnification and/or security that it
may in its absolute discretion require (whether by way of payment in advance or
otherwise) for all costs, losses and liabilities which it may incur in bringing any
action or proceedings.

	29.7	 	Security Trustee’s obligations
	 
	 	 	The Security Trustee shall promptly inform the Agent of:

	 	29.7.1	 	the contents of any notice or document received by it in its capacity as Security
Trustee from the Borrower under any Finance Document; and
	 
	 	29.7.2	 	the occurrence of any Default or any default by the Borrower in the due performance
of or compliance with its obligations under any Finance Document of which the Security
Trustee has received notice from any other party to this Agreement.

	29.8	 	Excluded obligations
	 
	 	 	Notwithstanding anything to the contrary expressed or implied in the Finance Documents, the
Security Trustee shall not:

	 	29.8.1	 	be bound to enquire as to (i) whether or not any Default has occurred or (ii) the
performance, default or any breach by the Borrower of its obligations under any of the
Finance Documents;
	 
	 	29.8.2	 	be bound to account to any other Party for any sum or the profit element of any sum
received by it for its own account;
	 
	 	29.8.3	 	be bound to disclose to any other person (including but not limited to any Secured
Party) (i) any confidential information or (ii) any other information if

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	 	 	 	disclosure would, or might in its reasonable opinion, constitute a breach of any
law or be a breach of fiduciary duty;
	 
	 	29.8.4	 	be under any obligations other than those which are specifically provided for in the
Finance Documents; or
	 
	 	29.8.5	 	have or be deemed to have any duty, obligation or responsibility to, or relationship
of trust or agency with, the Borrower.

	29.9	 	Exclusion of Security Trustee’s liability
	 
	 	 	The Security Trustee shall not accept responsibility or be liable for:

	 	29.9.1	 	the adequacy, accuracy and/or completeness of any information (whether oral or
written) supplied by the Security Trustee or any other person in or in connection with
any Finance Document or the transactions contemplated in the Finance Documents, or any
other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document;
	 
	 	29.9.2	 	the legality, validity, effectiveness, adequacy or enforceability of any Finance
Document or the Transaction Security or any other agreement, arrangement or document
entered into, made or executed in anticipation of or in connection with any Finance
Document or the Transaction Security;
	 
	 	29.9.3	 	any losses to any person or any liability arising as a result of taking or
refraining from taking any action in relation to any of the Finance Documents or the
Transaction Security or otherwise, whether in accordance with an instruction from the
Agent or otherwise unless directly caused by it gross negligence or wilful misconduct;
	 
	 	29.9.4	 	the exercise of, or the failure to exercise, any judgment, discretion or power given
to it by or in connection with any of the Finance Documents, the Transaction Security
or any other agreement, arrangement or document entered into, made or executed in
anticipation of or in connection with the Finance Documents or the Transaction
Security; or
	 
	 	29.9.5	 	any shortfall which arises on the enforcement of the Transaction Security.

	29.10	 	No proceedings
	 
	 	 	No Party (other than the Security Trustee) may take any proceedings against any officer,
employee or agent of the Security Trustee in respect of any claim it might have against the
Security Trustee or in respect of any act or omission of any kind by that officer, employee
or agent in relation to any Finance Document or any Transaction Security and any officer,
employee or agent of the Security Trustee may rely on this Clause subject to Clause 1.4
(Third party rights) and the provisions of the Third Parties Act.

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	29.11	 	Own responsibility
	 
	 	 	Without affecting the responsibility of the Borrower for information supplied by or on its
behalf in connection with any Finance Document, each Secured Party confirms to the Security
Trustee that it has been, and will continue to be, solely responsible for making its own
independent appraisal and investigation of all risks arising under or in connection with any
Finance Document including but not limited to:

	 	29.11.1	 	the financial condition, status and nature of the Borrower;
	 
	 	29.11.2	 	the legality, validity, effectiveness, adequacy and enforceability of any
Finance Document and the Transaction Security and any other agreement, arrangement or
document entered into, made or executed in anticipation of, under or in connection with
any Finance Document or the Transaction Security;
	 
	 	29.11.3	 	whether that Secured Party has recourse, and the nature and extent of that recourse,
against any Party or any of its respective assets under or in connection with any
Finance Document, the Transaction Security, the transactions contemplated by
the Finance Documents or any other agreement, arrangement or document entered into,
made or executed in anticipation of, under or in connection with any Finance Document
or the Transaction Security;
	 
	 	29.11.4	 	the adequacy, accuracy and/or completeness of any information provided by the
Security Trustee or by any other person under or in connection with any Finance
Document, the transactions contemplated by any Finance Document or any other agreement,
arrangement or document entered into, made or executed in anticipation of, under
or in connection with any Finance Document; and
	 
	 	29.11.5	 	the right or title of any person in or to, or the value or sufficiency of any part
of the Charged Property, the priority of any of the Transaction Security or the
existence of any Security affecting the Charged Property,

	 	 	and each Secured Party warrants to the Security Trustee that it has not relied on and will
not at any time rely on the Security Trustee in respect of any of these matters.
	 
	29.12	 	No responsibility to perfect Transaction Security
	 
	 	 	The Security Trustee shall not be liable for any failure to:

	 	29.12.1	 	require the deposit with it of any deed or document certifying, representing or
constituting the title of the Borrower to any of the Charged Property;
	 
	 	29.12.2	 	obtain any licence, consent or other authority for the execution, delivery,
legality, validity, enforceability or admissibility in evidence of any of the Finance
Documents or the Transaction Security;

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	 	29.12.3	 	register, file or record or otherwise protect any of the Transaction
Security (or the priority of any of the Transaction Security) under any applicable
laws in any jurisdiction or to give notice to any person of the execution of any of
the Finance Documents or of the Transaction Security;
	 
	 	29.12.4	 	take, or to require the Borrower to take, any steps to perfect its title to any of
the Charged Property or to render the Transaction Security effective or to secure the
creation of any ancillary Security under the laws of any jurisdiction; or
	 
	 	29.12.5	 	require any further assurances in relation to any of the Security Documents.

	29.13	 	Insurance by Security Trustee

	 	29.13.1	 	The Security Trustee shall not be under any obligation to insure any of the Charged
Property, to require any other person to maintain any insurance or to verify any
obligation to arrange or maintain insurance contained in the Finance Documents. The
Security Trustee shall not be responsible for any loss which may be suffered by any
person as a result of the lack of or inadequacy of any such insurance.
	 
	 	29.13.2	 	Where the Security Trustee is named on any insurance policy as an insured party, it
shall not be responsible for any loss which may be suffered by reason of, directly or
indirectly, its failure to notify the insurers of any material fact relating to the
risk assumed by such insurers or any other information of any kind, unless the Agent
shall have requested it to do so in writing and the Security Trustee shall have failed
to do so within fourteen days after receipt of that request.

	29.14	 	Custodians and nominees
	 
	 	 	The Security Trustee may appoint and pay any person to act as a custodian or nominee on any
terms in relation to any assets of the trust as the Security Trustee may determine,
including for the purpose of depositing with a custodian this Agreement or any document
relating to the trust created under this Agreement.
	 
	29.15	 	Acceptance of title
	 
	 	 	The Security Trustee shall be entitled to accept without enquiry, and shall not be obliged
to investigate, any right and title that the Borrower may have to any of the Charged
Property and shall not be liable for or bound to require the Borrower to remedy any defect
in its right or title.
	 
	29.16	 	Refrain from illegality
	 
	 	 	The Security Trustee may refrain from doing anything which in its opinion will or may be
contrary to any relevant law, directive or regulation of any jurisdiction which would or
might otherwise render it liable to any person, and the Security Trustee may do anything
which is, in its opinion, necessary to comply with any such law, directive or regulation.

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	29.17	 	Business with the Borrower
	 
	 	 	The Security Trustee may accept deposits from, lend money to, and generally engage in any
kind of banking or other business with the Borrower.
	 
	29.18	 	Winding up of trust
	 
	 	 	Without prejudice to Clause 29.3.3, if the Security Trustee, with the approval of the Agent,
determines that (a) all of the Secured Obligations and all other obligations secured by any
of the Security Documents have been fully and finally discharged and (b) none of the Secured
Parties is under any commitment, obligation or liability (actual or contingent) to make
advances or provide other financial accommodation to the Borrower pursuant to the Finance
Documents, the trusts set out in this Agreement shall be wound up and the Security Trustee
shall release, without recourse or warranty, all of the Transaction Security and the rights
of the Security Trustee under each of the Security Documents.
	 
	29.19	 	Perpetuity period
	 
	 	 	The perpetuity period under the rule against perpetuities, if applicable to this Agreement,
shall be the period of eighty years from the date of this Agreement.
	 
	29.20	 	Powers supplemental
	 
	 	 	The rights, powers and discretions conferred upon the Security Trustee by this Agreement
shall be supplemental to the Trustee Act 1925 and the Trustee Act 2000 and in addition to
any which may be vested in the Security Trustee by general law or otherwise.
	 
	29.21	 	Trustee division separate

	 	29.21.1	 	In acting as trustee for the Secured Parties, the Security Trustee shall be regarded
as acting through its agency or trustee division which shall be treated as a separate
entity from any of its other divisions or departments;
	 
	 	29.21.2	 	If information is received by another division or department of the Security
Trustee, it may be treated as confidential to that division or department and the
Security Trustee shall not be deemed to have notice of it.

	29.22	 	Disapplication
	 
	 	 	Section 1 of the Trustee Act 2000 shall not apply to the duties of the Security Trustee in
relation to the trusts constituted by this Agreement. Where there are any inconsistencies
between the Trustee Act 1925 or the Trustee Act 2000 and the provisions of this Agreement,
the provisions of this Agreement shall, to the extent allowed by law, prevail and, in the
case of any inconsistency with the Trustee Act 2000, the provisions of this Agreement shall
constitute a restriction or exclusion for the purposes of that Act.
	 
	30.	 	CHANGE OF SECURITY TRUSTEE AND DELEGATION
	 
	30.1	 	Resignation of the Security Trustee

	 	30.1.1	 	The Security Trustee may resign and appoint one of its Affiliates as successor by
giving notice to the Agent.

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	 	30.1.2	 	Alternatively, the Security Trustee may resign by giving notice to
the Agent in which case the Majority Lenders (in consultation with the Borrower)
may appoint a successor Security Trustee.
	 
	 	30.1.3	 	If the Majority Lenders have not appointed a successor Security Trustee in accordance
with sub-Clause 30.1.2 above within thirty days after the notice of resignation was
given, the Security Trustee (after consultation with the Agent and the Borrower) may
appoint a successor Security Trustee.
	 
	 	30.1.4	 	The retiring Security Trustee shall, at its own cost, make available to the successor
Security Trustee such documents and records and provide such assistance as the
successor Security Trustee may reasonably request for the purposes of performing its
functions as Security Trustee under the Finance Documents.
	 
	 	30.1.5	 	The Security Trustee’s resignation notice shall only take effect upon (i) the
appointment of a successor and (ii) the transfer of all of the Transaction Security to
that successor.
	 
	 	30.1.6	 	Upon the appointment of a successor, the retiring Security Trustee shall be
discharged from any further obligation in respect of the Finance Documents but shall
remain entitled to the benefit of Clause 29 (The Security Trustee). Its successor and
each of the other Parties shall have the same rights and obligations amongst themselves
as they would have had if such successor had been an original Party.

	30.2	 	Delegation

	 	30.2.1	 	The Security Trustee may, at any time, delegate by power of attorney or
otherwise to any person for any period, all or any of the rights, powers and
discretions vested in it by any of the Finance Documents.
	 
	 	30.2.2	 	The delegation may be made upon any terms and conditions (including the power to
sub-delegate) and subject to any restrictions that the Security Trustee may think fit
in the interests of the Secured Parties.

	30.3	 	Additional Security Trustees

	 	30.3.1	 	The Security Trustee may at any time appoint (and subsequently remove) any
person to act as a separate trustee or as a co-trustee jointly with it (i) if it
considers that appointment to be in the interests of the Secured Parties or (ii) for
the purposes of conforming to any legal requirements, restrictions or conditions which
the Security Trustee deems to be relevant or (iii) for obtaining or enforcing any
judgment in any jurisdiction, and the Security Trustee shall give prior notice to the
Agent of that appointment.
	 
	 	30.3.2	 	Any person so appointed shall have the rights, powers and discretions (not exceeding
those conferred on the Security Trustee by this Agreement) and the duties and
obligations that are conferred or imposed by the instrument of appointment.

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	 	30.3.3	 	The remuneration that the Security Trustee may pay to that person, and any
costs and expenses incurred by that person in performing its functions pursuant to
that appointment shall, for the purposes of this Agreement, be treated as costs
and expenses incurred by the Security Trustee unless such costs and expenses arise
as a result of the wilful misconduct or gross negligence of that person.

	31.	 	INDEMNITIES AND INFORMATION
	 
	31.1	 	Security Trustee’s additional remuneration

	 	31.1.1	 	In the event of (i) the occurrence of a Default or (ii) the Security Trustee
reasonably considering it necessary or expedient in connection with its role as such or
the Transaction Security or (iii) the Security Trustee being requested by the Borrower
or the Majority Lenders to undertake duties which the Security Trustee and the Borrower
agree to be of an exceptional nature and/or outside the scope of the normal duties of
the Security Trustee under the Finance Documents, the Borrower shall pay to the
Security Trustee any additional remuneration (together with any applicable VAT) as may
be agreed between them.
	 
	 	31.1.2	 	If the Security Trustee and the Borrower fail to agree upon the nature of those
duties or upon any additional remuneration, that dispute shall be determined by the
President of the Law Society of Hong Kong (acting as an expert and not as an
arbitrator) selected by the Security Trustee and approved by the Borrower (the costs of
that nomination and of the President of the Law Society of Hong Kong being payable by
the Borrower) and the determination of the President of the Law Society of Hong Kong
shall be final and binding upon the parties to this Agreement.

	31.2	 	Indemnification of the Security Trustee
	 
	 	 	Each Creditor shall (in the proportion that the Liabilities due to it bears to the
aggregate of the Liabilities due to all the Creditors for the time being (or, if the
Liabilities of each of those Creditors is zero, immediately prior to their being reduced to
zero)), indemnify the Security Trustee, within three business days of demand, against any
cost, loss or liability incurred by the Security Trustee (otherwise than by reason of the
Security Trustee’s gross negligence or wilful misconduct) in acting as Security Trustee
under the Finance Documents (unless the Security Trustee has been reimbursed by the Borrower
pursuant to a Finance Document or was not entitled to such reimbursement as a result of its
own gross negligence or wilful misconduct) and the Borrower shall indemnify each Creditor
against any payment made by it under this Clause.
	 
	31.3	 	Information and dealing
	 
	 	 	The Creditors shall provide to the Security Trustee from time to time (through the Agent)
any information that the Security Trustee may reasonably specify as being necessary or
desirable to enable the Security Trustee to perform its functions as trustee. Each Creditor
shall deal with the Security Trustee exclusively through the Agent. The

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	 	 	Agent shall be under no obligation to act as agent or otherwise on behalf of any Hedge Counterparty
except as specifically referred in, and for the purposes of, this Agreement.

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SECTION 11

SECURITY AND PRIORITY

	32.	 	SECURITY AND PRIORITY
	 
	32.1	 	Waiver of defences
	 
	 	 	Neither the provisions of this Agreement, nor the obligations of the Borrower hereunder,
will be affected by an act, omission, matter or thing which, but for this Clause 32.1,
would reduce, release or prejudice the subordination and priorities in this Agreement
including:

	 	32.1.1	 	any time, waiver or consent granted to, or composition with any person;
	 
	 	32.1.2	 	the release of the Borrower or any other person under the terms of any composition or
arrangement with any creditor of the Borrower;
	 
	 	32.1.3	 	the taking, variation, compromise, exchange, renewal or release of, or refusal or
neglect to perfect, take up or enforce, any rights against, or security over assets of,
the Borrower or any non-presentation or non-observance of any formality or other
requirement in respect of any instrument or any failure to realise the full value of
any Transaction Security;
	 
	 	32.1.4	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of the Borrower or any other person;
	 
	 	32.1.5	 	any amendment (however fundamental) or replacement of a Finance
Document or any other document or security;
	 
	 	32.1.6	 	any unenforceability, illegality, invalidity or non-provability of any obligation of
any person under any Finance Document or any other document or security;
	 
	 	32.1.7	 	any intermediate payment or discharge of any of the Liabilities of the Creditors in
whole or in part; or
	 
	 	32.1.8	 	any insolvency or similar proceedings affecting any person.

	32.2	 	Priorities not affected
	 
	 	 	Except as otherwise provided in this Agreement the priorities referred to in this Clause 32
(Ranking and Priority) will:

	 	32.2.1	 	not be affected by any reduction or increase in the principal amount secured by the
Transaction Security in respect of the Liabilities of the Creditors or by any
intermediate reduction or increase in, amendment or variation to any of the Finance
Documents, or by any variation or satisfaction of, any of the Liabilities or any other
circumstances;

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	 	32.2.2	 	apply regardless of the order in which or dates upon which the
Finance Documents and this Agreement are executed or registered or notice of them
is given to any person; and
	 
	 	32.2.3	 	secure the Liabilities of the Creditors in the order specified, regardless of the
date upon which any of the Liabilities arise or of any fluctuations in the amount of
any of the Liabilities outstanding.

	33.	 	HEDGE COUNTERPARTIES: RIGHTS AND OBLIGATIONS
	 
	33.1	 	Identity of Hedge Counterparties
	 
	 	 	No person providing hedging facilities to the Borrower shall be entitled to share in any of
the Transaction Security or in the benefit of any guarantee or indemnity in respect of any
of the liabilities arising in relation to those hedging facilities unless they are a party
to this Agreement as a Hedge Counterparty. A Lender, or an Affiliate of a Lender, may become
a Hedge Counterparty, and the Liabilities arising in respect of its hedging facilities shall
be treated as Hedge Liabilities, with effect from the date on which an otherwise duly
completed Accession Undertaking delivered by that Lender or Affiliate has been executed by
the Agent and the Security Trustee. No other person may become a Hedge Counterparty without
the consent of all the Lenders.
	 
	33.2	 	Security
	 
	 	 	The Hedge Counterparties may not take, accept or receive the benefit of any Security,
guarantee, indemnity or other assurance against loss from the Borrower in respect of the
Hedge Liabilities other than the Transaction Security.
	 
	33.3	 	Amendments
	 
	 	 	The Hedge Counterparties may not amend the Hedge Agreements in accordance with their terms
at any time unless either the prior consent of the Majority Lenders is obtained or if the
amendment is an administrative, technical or procedural change only.
	 
	33.4	 	Termination of Hedging transactions
	 
	 	 	If:

	 	(a)	 	following the occurrence of an Event of Default (and while the same is
continuing) a settlement amount or other amount falls due from a Hedge Counterparty to
the Borrower on termination of any hedging transaction under the Hedge Agreements; or
	 
	 	(b)	 	on termination of any hedging transaction under the Hedge Agreements occurring
after the commencement of any Enforcement Action, a settlement amount or other
amount falls due from the Borrower to a Hedge Counterparty,

	 	 	then that amount shall be paid directly to the Security Trustee, treated as the proceeds of
enforcement of the Transaction Security and applied in accordance with the terms of this
Agreement.

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	34.	 	ENTITLEMENT TO ENFORCE
	 
	34.1	 	Lenders: permitted enforcement
	 
	 	 	Nothing in this Agreement shall prevent the Lenders from taking Enforcement Action that
they are otherwise entitled to take under applicable law and in accordance with the terms
of the Finance Documents.
	 
	34.2	 	Hedge Counterparties: permitted enforcement
	 
	 	 	The Hedge Counterparties shall not take any Enforcement Action at any time except that they
may terminate or close out any hedging transaction under any Hedge Agreement prior to its
stated maturity (and shall notify the Agent if they do so) if permitted to do so by the
terms of such Hedge Agreement and:

	 	34.2.1	 	the Majority Lenders have accelerated their Liabilities or declared them prematurely
due and payable; or
	 
	 	34.2.2	 	the Majority Lenders have cancelled the Commitments and are no longer making Loans
available; or
	 
	 	34.2.3	 	the Borrower has defaulted on a payment due under the Hedge Agreements; or
	 
	 	34.2.4	 	an Illegality or Tax Event (each as defined in the 1992 ISDA Master Agreement) has
occurred in respect of any Hedge Agreement; or
	 
	 	34.2.5	 	an Event of Default has occurred under Clause 23.1 (Non-payment) in respect of any
Finance Document (other than a Hedge Agreement) or under Clause 23.3 (Other
obligations); or
	 
	 	34.2.6	 	an Event of Default has occurred under Clause 23.6 (Insolvency) or 23.7 (Insolvency
Proceedings); or
	 
	 	34.2.7	 	the consent of the Majority Lenders is obtained.

	34.3	 	Hedge Counterparties: required enforcement
	 
	 	 	The Hedge Counterparties shall, if permitted to do so by the terms of such Hedge Agreement,
promptly terminate or close out any hedging transaction under each Hedge Agreement prior to
its stated maturity following a request by the Security Trustee if the Majority Lenders
have accelerated their Liabilities or declared them prematurely due and payable in
accordance with Clause 23.22 (Acceleration).
	 
	35.	 	EFFECT OF INSOLVENCY EVENT
	 
	35.1	 	Acceleration and claim
	 
	 	 	After the occurrence of an Insolvency Event in relation to the Borrower (and while the same
is continuing), each Creditor may, to the extent it is entitled to do so under applicable
law and in accordance with the terms of the Finance Documents or any Hedge Agreement,
exercise any right it may have in respect of the Borrower to:

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	 	35.1.1	 	accelerate any of its Liabilities or declare them prematurely due
and payable or payable on demand or prematurely close out or terminate any Hedge
Liabilities;
	 
	 	35.1.2	 	make a demand under any guarantee, indemnity or other assurance against loss in
respect of any Liabilities of the Borrower;
	 
	 	35.1.3	 	exercise any right of set off or take or receive any payment in respect of any
Liabilities; or
	 
	 	35.1.4	 	claim and prove in the liquidation of the Borrower for the Liabilities owing to it.

	35.2	 	Payment of distributions
	 
	 	 	After the occurrence of an Insolvency Event in relation to the Borrower, it is intended (as
among the Creditors) that the person responsible for the distribution of the assets of the
Borrower shall be directed to pay any distributions in respect of any of the Liabilities to
the Security Trustee until the Liabilities of the Secured Parties have been paid in full,
and each of the Creditors shall act in a manner consistent with such intention.
	 
	35.3	 	Insolvency Set-Off
	 
	 	 	To the extent that any of the Liabilities is discharged by way of set-off (mandatory or
otherwise) after the occurrence of an Insolvency Event, any Creditor which benefited from
that set-off shall pay an amount equal to the amount of its Liabilities discharged by that
set-off to the Security Trustee for application in accordance with Clause 40 (Application
of Proceeds).
	 
	35.4	 	Filing of claims
	 
	 	 	After the occurrence of an Insolvency Event in relation to the Borrower which is
continuing, each of the Creditors irrevocably authorises the Security Trustee to:

	 	35.4.1	 	take any Enforcement Action;
	 
	 	35.4.2	 	demand, sue, prove and give receipt for any or all of the Liabilities;
	 
	 	35.4.3	 	collect and receive all distributions on, or on account of, any or all of the
Liabilities; and
	 
	 	35.4.4	 	file claims, take proceedings and do all other things the Security Trustee considers
reasonably necessary to recover the Liabilities,

	 	 	in each case, to the extent it is entitled to do so under applicable law and in accordance
with the terms of the Finance Documents or (in the case of a Hedge Counterparty) the
relevant Hedge Agreement.
	 
	35.5	 	Creditors’ actions
	 
	 	 	The Creditors will do all things that the Security Trustee reasonably requests in order to
give effect to this Clause 35 (Effect of Insolvency Event) and, if the Security Trustee

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	 	 	is not entitled to take any of the actions contemplated by this Clause 35 (Effect of
Insolvency Event) or if the Security Trustee requests any Creditor to take that action, that
Creditor will undertake those actions itself in accordance with the reasonable instructions
of the Security Trustee or will grant a power of attorney to the Security Trustee (on such
terms as the Security Trustee may reasonably require) to enable the Security Trustee to take
such action.
	 
	36.	 	TURNOVER OF RECEIPTS
	 
	36.1	 	Turnover by the Creditors
	 
	 	 	Subject to Clause 36.2 (Permitted assurance and receipts) if at any time prior to the
discharge in full of the Liabilities of the Creditors, any Creditor receives or recovers:

	 	36.1.1	 	any payment or distribution of, or on account of or in relation to, any of the
Liabilities which is not permitted by Clause 40 (Application of Proceeds);
	 
	 	36.1.2	 	any amount by way of set-off in respect of any of the Liabilities owed to them which
does not give effect to a payment permitted by Clause 40 (Application of Proceeds);
	 
	 	36.1.3	 	the proceeds of any enforcement of any Transaction Security except in accordance with
Clause 40 (Application of Proceeds); or
	 
	 	36.1.4	 	any distribution in cash or in kind made as a result of the occurrence of an
Insolvency Event in respect of the Borrower,

	 	 	that Creditor will hold that amount on trust for the Security Trustee and promptly pay that
amount to the Security Trustee or, if this trust cannot be given effect to or if in respect
of any Creditor this trust has the effect of creating a proprietary or security interest
over that amount registrable under the Companies Act 1985, that Creditor shall pay an
amount equal to that receipt or recovery to the Security Trustee, in each case to be held
on trust by the Security Trustee for application in accordance with the terms of this
Agreement.
	 
	36.2	 	Permitted assurance and receipts
	 
	 	 	Nothing in this Agreement shall restrict the ability of any Creditor:

	 	36.2.1	 	to arrange with any person (other than the Borrower) any assurance against loss in
respect of, or reduction of its credit exposure to, the Borrower (including assurance
by way of credit based derivative or sub-participation); or
	 
	 	36.2.2	 	to receive or recover any sum in respect of its Liabilities as a result of any
assignment or transfer permitted by Clause 24 (Changes to the Lenders) or 25 (Changes
to the Hedge Counterparties),

	 	 	and that Creditor shall not be obliged to account to any other Party for any sum received
by it as a result of that action.

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	37.	 	SHARING
	 
	37.1	 	Recovering Creditor’s rights

	 	37.1.1	 	Any amount paid by a Creditor (a “Recovering Creditor”) to the Security Trustee under
Clause 35 (Effect of Insolvency Event) or 36 (Turnover of Receipts) shall be treated as
having been paid by the Borrower and distributed in accordance with the terms of this
Agreement.
	 
	 	37.1.2	 	On a distribution of that amount by the Security Trustee, the Recovering Creditor
will be subrogated to the rights of the Creditors which have shared in the
redistribution.
	 
	 	37.1.3	 	If and to the extent that the Recovering Creditor is not able to rely on its rights
under Clause 37.1.2 the Borrower shall be liable to the Recovering Creditor for a debt
equal to the amount received or recovered by the Recovering Creditor and paid to the
Security Trustee (the “Shared Amount”) which is immediately due and payable.

	37.2	 	Reversal of redistribution
	 
	 	 	If any part of the Shared Amount received or recovered by a Recovering Creditor becomes
repayable to the Borrower and is repaid by that Recovering Creditor to the Borrower, then:

	 	37.2.1	 	each Creditor which has received a share of the relevant Shared Amount shall, upon
request of the Security Trustee, pay to the Security Trustee for account of that
Recovering Creditor an amount equal to the appropriate part of its share of the Shared
Amount (together with an amount as is necessary to reimburse that Recovering Creditor
for its proportion of any interest on the Shared Amount which that Recovering Creditor
is required to pay); and
	 
	 	37.2.2	 	that Recovering Creditor’s rights of subrogation in respect of any
reimbursement shall be cancelled and the Borrower will be liable to each reimbursing
Creditor for the amount so reimbursed.

	37.3	 	Exceptions

	 	37.3.1	 	Clause 36 (Turnover of Receipts) shall not apply to the extent that the Recovering
Creditor would not, after making any payment pursuant to this Clause, have a valid and
enforceable claim against the Borrower.
	 
	 	37.3.2	 	A Recovering Creditor is not obliged to share with any other Creditor any amount
which the Recovering Creditor has received or recovered as a result of taking legal or
arbitration proceedings, if:

	 	(a)	 	it notified that other Creditor of the legal or arbitration proceedings; and
	 
	 	(b)	 	that other Creditor had an opportunity to participate in
those legal or arbitration proceedings but did not do so as soon as
reasonably practicable having received notice and did not take separate legal
or arbitration proceedings.

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	37.4	 	Deferral of Subrogation
	 
	 	 	No Creditor will exercise any rights which it may have by reason of the performance
by it of its obligations under the Finance Documents to take the benefit (in whole or in
part and whether by way of subrogation or otherwise) of any rights under the Finance
Documents of any Creditor which ranks ahead of it in accordance with the priorities set out
in Clause 32 (Ranking and Priority) until such time as all of the Liabilities of each prior
ranking Creditor have been irrevocably paid in full.
	 
	38.	 	ENFORCEMENT OF SECURITY
	 
	38.1	 	Agent’s directions
	 
	 	 	The Security Trustee will enforce the Transaction Security only at the request the
Agent, At all times after the request to commence enforcement has been issued and subject
to the terms of this Agreement, the Security Trustee will act on the directions of the
Agent who shall be entitled to give directions and do any other things in relation to the
enforcement of the Transaction Security (including in connection with, but not limited to,
the disposal, collection or realisation of assets subject to the Transaction Security) that
it considers appropriate including (without limitation) determining the timing and manner
of enforcement against any particular person or asset.
	 
	38.2	 	Waiver of right to enforce
	 
	 	 	To the extent permitted under applicable law and subject to Clause 40 (Application of
Proceeds), each of the Secured Parties and the Borrower waives all rights it may otherwise
have to require that the Transaction Security be enforced in any particular order or manner
or at any particular time or that any sum received or recovered from any person, or by
virtue of the enforcement of any of the Transaction Security or of any other security
interest, which is capable of being applied in or towards discharge of any of the Secured
Obligations is so applied.
	 
	39.	 	DISPOSALS AND CLAIMS
	 
	39.1	 	Proceeds of disposals and claims before Enforcement Action
	 
	 	 	Prior to the commencement of any Enforcement Action on any disposal permitted by the
Finance Documents the Security Trustee shall be authorised (at the cost of the Borrower) to
release the assets disposed of from the Transaction Security and is authorised to execute
or enter into, on behalf of and without the need of any letter of authority from the
Lenders any release of the Transaction Security or any other claim over such assets and to
issue any certificates of non-crystallisation of any floating charge that may, in the
absolute discretion of the Security Trustee, be considered necessary or desirable.
	 
	39.2	 	Disposal after Enforcement Action
	 
	 	 	If any assets are sold or otherwise disposed of by (or on behalf of) the Security
Trustee or by the Borrower at the request of the Security Trustee (acting on the
instructions of or with the consent of the Agent) either as a result of the enforcement of
the Transaction Security or a disposal by the Borrower after any Enforcement Action
permitted under applicable law and in accordance with the terms of the Finance

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	 	 	Documents or (in the case of a Hedge Counterparty) the relevant Hedge Agreement, the
Security Trustee shall be authorised (at the cost of the Borrower) to release those assets
from the Transaction Security and is authorised to execute or enter into, on behalf of and,
without the need for any further authority from any of the Lenders or the Borrower:

	 	39.2.1	 	any release of the Transaction Security or any other claim over that asset and to
issue any certificates of non-crystallisation of any floating charge that may, in the
absolute discretion of the Security Trustee, be considered necessary or desirable; and
	 
	 	39.2.2	 	if the asset disposed of consists of all of the shares in the capital of the Borrower
and if the Security Trustee wishes to dispose of any Liabilities owed by the Borrower,
any agreement to dispose of all or part of those Liabilities on behalf of the Finance
Parties (with the proceeds thereof being applied as if they were the proceeds of
enforcement of the Transaction Security) provided that the Security Trustee shall take
reasonable care to obtain a fair market price in the prevailing market conditions
(though the Security Trustee shall have no obligation to postpone any disposal in order
to achieve a higher price).

	39.3	 	Releases
	 
	 	 	The Creditors and the Borrower shall execute any assignments, transfers, releases or other
documents that the Security Trustee may reasonably consider to be necessary to give effect
to the releases or disposals contemplated in this Clause 39 (Disposals and claims).
	 
	40.	 	APPLICATION OF PROCEEDS
	 
	40.1	 	Order of application
	 
	 	 	Subject to Clause 3 (Utilisation) all amounts from time to time received or recovered by
the Agent or the Security Trustee pursuant to the terms of any Finance Document or in
connection with the realisation or enforcement of all or any part of the Transaction
Security shall be applied in the following order of priority:

	 	40.1.1	 	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the
Agent, the Technical Bank, the Offshore Account Bank, the Security Trustee and any
Receiver or Delegate under the Finance Documents;
	 
	 	40.1.2	 	second, in payment of all costs and expenses reasonably incurred by a Creditor in
connection with any realisation or enforcement of the Transaction Security taken in
accordance with the terms of this Agreement;
	 
	 	40.1.3	 	third, in payment through the Agent to the Lenders and Hedge Counterparties for
application (in accordance with the terms of the Finance Documents) towards the
discharge of the Liabilities, pro rata;

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	 	40.1.4	 	if the Borrower is not under any further actual or contingent liability
under any Finance Document, in payment to any person to whom the Agent or Security
Trustee is obliged to pay in priority to the Borrower; and
	 
	 	40.1.5	 	the balance, if any, in payment to the Borrower.

	 	 	The provisions of this Clause 40.1 shall override any application made by the Borrower.
	 
	40.2	 	Investment of proceeds
	 
	 	 	Prior to the application of the proceeds of the Transaction Security in accordance with
Clause 40.1 (Order of Application) the Security Trustee may, at its discretion, hold all or
part of those proceeds in an interest bearing suspense or impersonal account(s) in the name
of the Security Trustee or of the Agent with such financial institution (including itself)
and for so long as the Security Trustee shall think fit (the interest being credited to the
relevant account) pending the application from time to time of those monies at the Security
Trustee’s discretion in accordance with the provisions of this Clause 40.2.
	 
	40.3	 	Currency Conversion

	 	40.3.1	 	For the purpose of, or pending the discharge of, any of the Secured
Obligations the Security Trustee may convert any moneys received or recovered by
the Security Trustee from one currency to another, at the then current spot rate at
which the Security Trustee is offering to purchase from its general corporate customers
the currency in which the Secured Obligations are due with the amount received.
	 
	 	40.3.2	 	The obligations of the Borrower to pay in the due currency shall only be satisfied to
the extent of the amount of the due currency purchased after deducting the costs of
conversion.

	40.4	 	Permitted Deductions
	 
	 	 	The Security Trustee shall be entitled (a) to set aside by way of reserve amounts
required to meet and (b) to make and pay, any deductions and withholdings (on account of
taxes or otherwise) which it is or may be required by any applicable law to make from any
distribution or payment made by it under this Agreement, and to pay all taxes which may be
assessed against it in respect of any of the Charged Property, or as a consequence of
performing its duties, or by virtue of its capacity as Security Trustee under any of the
Finance Documents or otherwise (other than in connection with its remuneration for
performing its duties under this Agreement).
	 
	40.5	 	Good Discharge

	 	40.5.1	 	Any payment to be made in respect of the Secured Obligations by the Security Trustee
may be made to the Agent on behalf of the Lenders and to the Agent on behalf of the
Hedge Counterparties and any payment made in that way shall be a good discharge, to
the extent of that payment, by the Security Trustee.

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	 	40.5.2	 	The Security Trustee is under no obligation to make the payments to the
Agent under sub-Clause 40.5.1 of this Clause 40.5 in the same currency as that in
which the Liabilities of the relevant Lender are denominated.

	40.6	 	Calculation of Amounts
	 
	 	 	For the purpose of calculating any person’s share of any sum payable to or by it, the
Security Trustee shall be entitled to:

	 	40.6.1	 	notionally convert the Liabilities owed to any person into a common base currency
(decided in its discretion by the Security Trustee), that notional conversion to be
made at the then current spot rate at which the Security Trustee is offering to
purchase from its general corporate customers the notional base currency with the
actual currency of that person’s Liabilities at the time at which that calculation is
to be made; and
	 
	 	40.6.2	 	assume that all moneys received or recovered as a result of the enforcement of the
Transaction Security are applied in discharge of the Liabilities in accordance
with the terms of the Finance Documents under which those Liabilities have arisen.

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SECTION 12

ADMINISTRATION

	41.	 	PAYMENT MECHANICS
	 
	41.1	 	Payments to the Agent

	 	41.1.1	 	On each date on which the Borrower or a Lender is required to make a payment under a
Finance Document, the Borrower or that Lender shall make the same available to the
Agent (unless a contrary indication appears in a Finance Document) for value on the due
date at the time and in such funds specified by the Agent as being customary at the
time for settlement of transactions in the relevant currency in the place of payment.
	 
	 	41.1.2	 	Payment shall be made to such account in the principal financial centre of the
country of that currency with such bank as the Agent specifies.

	41.2	 	Distributions by the Agent
	 
	 	 	Each payment received by the Agent under the Finance Documents for another Party shall,
subject to Clause 41.3 (Distributions to the Borrower), Clause 41.4 (Clawback) and Clause
27.16 (Deduction from amounts payable by the Agent) be made available by the Agent as soon
as practicable after receipt to the Party entitled to receive payment in accordance with
this Agreement (in the case of a Lender, for the account of its Facility Office), to such
account as that Party may notify to the Agent by not less than five Business Days’ notice
with a bank in the principal financial centre of the country of that currency.
	 
	41.3	 	Distributions to the Borrower
	 
	 	 	The Agent may (with the consent of the Borrower or in accordance with Clause 42 (Set-off))
apply any amount received by it for the Borrower in or towards payment (on the date and in
the currency and funds of receipt) of any amount due from the Borrower under the Finance
Documents or in or towards purchase of any amount of any currency to be so applied.
	 
	41.4	 	Clawback

	 	41.4.1	 	Where a sum is to be paid to the Agent under the Finance Documents for another Party,
the Agent is not obliged to pay that sum to that other Party (or to enter into or
perform any related exchange contract) until it has been able to establish to its
satisfaction that it has actually received that sum.
	 
	 	41.4.2	 	If the Agent pays an amount to another Party and it proves to be the case that the
Agent had not actually received that amount, then the Party to whom that amount (or the
proceeds of any related exchange contract) was paid by the Agent shall on demand refund
the same to the Agent together with interest on that amount from the date of payment to
the date of receipt by the Agent, calculated by the Agent to reflect its cost of funds.

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	41.5	 	No set-off by Borrower
	 
	 	 	All payments to be made by the Borrower under the Finance Documents shall be calculated and
be made without (and free and clear of any deduction for) set-off or counterclaim.
	 
	41.6	 	Business Days

	 	41.6.1	 	Any payment which is due to be made on a day that is not a Business Day shall be made
on the next Business Day in the same calendar month (if there is one) or the preceding
Business Day (if there is not).
	 
	 	41.6.2	 	During any extension of the due date for payment of any principal or Unpaid Sum under
this Agreement which arises due to the operation of Clause 41.6.1, interest is payable
on the principal or Unpaid Sum at the rate payable on the original due date.

	41.7	 	Currency of account

	 	41.7.1	 	Subject to sub-clauses 41.7.2 and 41.7.3 below, dollars is the currency of account
and payment for any sum due from the Borrower under any Finance Document.
	 
	 	41.7.2.	 	Each payment in respect of costs, expenses or Taxes shall be made in the currency
in which the costs, expenses or Taxes are incurred.
	 
	 	41.7.3	 	Any amount expressed to be payable in a currency other than dollars shall be paid in
that other currency.

	41.8	 	Change of currency

	 	41.8.1	 	Unless otherwise prohibited by law, if more than one currency or currency unit are at
the same time recognised by the central bank of any country as the lawful currency of
that country, then:

	 	(a)	 	any reference in the Finance Documents to, and any
obligations arising under the Finance Documents in, the currency of that
country shall be translated into, or paid in, the currency or currency unit of
that country designated by the Agent (after consultation with the Borrower);
and
	 
	 	(b)	 	any translation from one currency or currency unit to another
shall be at the official rate of exchange recognised by the central bank for
the conversion of that currency or currency unit into the other, rounded up or
down by the Agent (acting reasonably).

	 	41.8.2	 	If a change in any currency of a country occurs, this Agreement will, to the extent
the Agent (acting reasonably and after consultation with the Borrower) specifies to be
necessary, be amended to comply with any generally accepted conventions and market
practice in the Relevant Interbank Market and otherwise to reflect the change in
currency.

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	42.	 	SET-OFF
	 
	 	 	A Finance Party may set off any matured obligation due from the Borrower under the
Finance Documents (to the extent beneficially owned by that Finance Party) against any
matured obligation owed by that Finance Party to the Borrower, regardless of the place of
payment, booking branch or currency of either obligation. If the obligations are in
different currencies, the Finance Party may convert either obligation at a market rate of
exchange in its usual course of business for the purpose of the set-off.
	 
	43.	 	NOTICES
	 
	43.1	 	Communications in writing
	 
	 	 	Any communication to be made under or in connection with the Finance Documents shall be
made in writing and, unless otherwise stated, may be made by fax, letter or e-mail.
	 
	43.2	 	Addresses
	 
	 	 	The address, fax number and e-mail address (and the department or officer, if any, for
whose attention the communication is to be made) of each Party for any communication or
document to be made or delivered under or in connection with the Finance Documents is:

	 	43.2.1	 	in the case of each Creditor and the Borrower, that identified with its name below;
	 
	 	43.2.2	 	in the case of each entity that becomes a Creditor in accordance with Clause 24
(Changes to the Lenders) or Clause 27 (Changes to Hedge Counterparties), that notified
in writing to the Agent on or prior to the date on which it becomes a Party; and
	 
	 	43.2.3	 	in the case of the Agent, the Technical Bank, the Security Trustee and the Offshore
Account Bank, that identified with its name below,

	 	 	or any substitute address, fax number, e-mail address or department or officer as the Party
may notify to the Agent (or the Agent may notify to the other Parties, if a change is made
by the Agent) by not less than five Business Days’ notice.
	 
	43.3	 	Delivery

	 	43.3.1	 	Any communication or document made or delivered by one person to another under
or in connection with the Finance Documents will only be effective:

	 	(a)	 	if by way of fax, when received in legible form; or
	 
	 	(b)	 	if by way of letter, when it has been left at the relevant
address or five Business Days after being deposited in the post postage
prepaid in an envelope addressed to it at that address,

	 	 	 	and, if a particular department or officer is specified as part of its address
details provided under Clause 43.2 (Addresses), if addressed to that department or
officer.

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	 	43.3.2	 	Any communication or document to be made or delivered to the Agent or the
Security Trustee will be effective only when actually received by the Agent or the
Security Trustee and then only if it is expressly marked for the attention of the
department or officer identified with the Agent’s or the Security Trustee’s
signature below (or any substitute department or officer as the Agent or Security
Trustee shall specify for this purpose).
	 
	 	43.3.3	 	All notices from or to the Borrower shall be sent through the Agent.
	 
	 	43.3.4	 	All notices to a Creditor from the Security Trustee shall be sent through the Agent.

	43.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address, fax number or e-mail address or change
of address, fax number or e-mail address pursuant to Clause 43.2 (Addresses) or changing
its own address, fax number or e-mail address, the Agent shall notify the other Parties.
	 
	43.5	 	Electronic communication

	 	43.5.1	 	Any communication to be made between the Agent or the Security Trustee and a
Creditor under or in connection with the Finance Documents may be made by electronic
mail or other electronic means, if the Agent or the Security Trustee and the relevant
Creditor:

	 	(a)	 	agree that, unless and until notified to the contrary, this
is to be an accepted form of communication;
	 
	 	(b)	 	notify each other in writing of their electronic mail address
and/or any other information required to enable the sending and receipt
of information by that means; and
	 
	 	(c)	 	notify each other of any change to their address or any other
such information supplied by them.

	 	43.5.2	 	Any electronic communication made between the Agent or the Security Trustee and a
Creditor will be effective only when actually received in readable form and in the case
of any electronic communication made by a Creditor to the Agent or the Security Trustee
only if it is addressed in such a manner as the Agent or the Security Trustee shall
specify for this purpose.

	43.6	 	English language

	 	43.6.1	 	Any notice given under or in connection with any Finance Document must be in
English.
	 
	 	43.6.2	 	All other documents provided under or in connection with any Finance Document must
be:

	 	(a)	 	in English; or

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	 	(b)	 	if not in English, and if so required by the Agent, accompanied
by a certified English translation and, in this case, the English
translation will prevail unless the document is a constitutional, statutory
or other official document.

	44.	 	CALCULATIONS AND CERTIFICATES
	 
	44.1	 	Evidence of Indebtedness

	 	44.1.1	 	Each Creditor shall maintain in accordance with its usual practice an account or
accounts evidencing the indebtedness of the Borrower to such Creditor under the Finance
Documents from time to time, including the amounts payable and paid to such Creditor
from time to time thereunder.
	 
	 	44.1.2	 	The Agent shall also maintain accounts in which it will record (a) the amount of each
Loan made hereunder, (b) the amount of any principal, interest or any other amount due
and payable or to become due and payable from the Borrower to each Lender under any
Finance Document and (c) the amount of any sum received by the Agent hereunder from the
Borrower and each Lender’s share thereof.
	 
	 	44.1.3	 	The entries maintained in the accounts maintained pursuant to sub-clauses 44.1.1 and
44.1.2 above shall be prima facie evidence of the existence and amounts of the
indebtedness therein recorded provided that the failure of the Agent or any Creditor to
maintain such accounts or any error therein shall not in any manner affect the
obligation of the Borrower to repay such indebtedness in accordance the terms of
the Finance Documents.

	44.2	 	Certificates and Determinations
	 
	 	 	Any certification or determination by a Secured Party of a rate or amount under any Finance
Document is, in the absence of manifest error, conclusive evidence of the matters to which
it relates.
	 
	44.3	 	Day count convention
	 
	 	 	Any interest, commission or fee accruing under a Finance Document will accrue from day to
day and is calculated on the basis of the actual number of days elapsed and a year of three
hundred and sixty days or, in any case where the practice in the Relevant Interbank Market
differs, in accordance with that market practice.
	 
	45.	 	PARTIAL INVALIDITY
	 
	 	 	If, at any time, any provision of the Finance Documents is or becomes illegal,
invalid or unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the legality, validity
or enforceability of such provision under the law of any other jurisdiction will in any way
be affected or impaired.

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	46.	 	REMEDIES AND WAIVERS
	 
	 	 	No failure to exercise, nor any delay in exercising, on the part of any Finance
Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall
any single or partial exercise of any right or remedy prevent any further or other exercise
or the exercise of any other right or remedy. The rights and remedies provided in this
Agreement are cumulative and not exclusive of any rights or remedies provided by law.
	 
	47.	 	AMENDMENTS AND WAIVERS
	 
	47.1	 	Required consents

	 	47.1.1	 	Subject to Clause 47.2 (Exceptions) and Clause 39.3 (Releases) any term of the
Finance Documents may be amended or waived only with the consent of the Majority
Lenders and the Borrower and any such amendment or waiver will be binding on all
Parties.
	 
	 	47.1.2	 	The Agent or, in respect of the Security Documents, the Security Trustee, may effect,
on behalf of any Finance Party, any amendment or waiver permitted by this Clause.

	47.2	 	Exceptions

	 	47.2.1	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(a)	 	the definition of “Majority Lenders” in Clause 1.1 (Definitions);
	 
	 	(b)	 	an extension to the date of payment of any amount under the
Finance Documents;
	 
	 	(c)	 	a reduction in the Margin (other than as contemplated in such
definition) or in the amount of any payment of principal, interest, fees
or commission payable;
	 
	 	(d)	 	an increase in or an extension of any Commitment;
	 
	 	(e)	 	a change to an Obligor;
	 
	 	(f)	 	any provision which expressly requires the consent of all the Lenders;
	 
	 	(g)	 	Clause 2.2 (Finance Parties’ rights and
obligations), Clause 24 (Changes to the Lenders) or this Clause 47
(Amendments and Waivers),

	 	 	 	shall not be made without the prior consent of all the Lenders.
	 
	 	47.2.2	 	An amendment or waiver that has the effect of changing or which relates to:

	 	(a)	 	the definitions of “Creditor”, “Enforcement Action”,
“Liabilities”, “Hedge Liabilities”, “Hedge Agreement”, “Hedge Counterparties”,
“Insolvency Event”, “Secured Parties”, “Security Documents” and “Transaction
Security” in Clause 1.1 (Definitions);

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	 	(b)	 	Clause 25 (Changes to Hedge Counterparties);
	 
	 	(c)	 	the provisions of Section 11 (Security and Priority);
	 
	 	(d)	 	Clause 43 (Notices); or
	 
	 	(e)	 	this Clause 47,

	 	 	 	in a manner which could reasonably be considered to be materially adverse to the
Hedge Counterparties, shall not be made without the consent of the Hedge
Counterparties.
	 
	 	47.2.3	 	An amendment or waiver which relates to the rights or obligations of the Agent, the
Technical Bank, the Security Trustee, the Offshore Account Bank or the Arranger may not
be effected without the consent of the Agent, the Technical Bank, the Security Trustee,
the Offshore Account Bank or the Arranger, as the case may be.
	 
	 	47.2.4	 	An amendment or waiver that has the effect of changing, or which relates to, the
provisions of Section 11 (Security and Priority) may be made with the consent of the
Majority Lenders and the Hedge Counterparties without reference to the Borrower.
	 
	 	47.2.5	 	Notwithstanding Clauses 47.2.1 and 47.2.2, any term of the Finance Documents
may be amended or waived in connection with an initial public offering of shares in the
Borrower or a Holding Company of the Borrower with the consent of the Majority Lenders
and the Borrower.

	48.	 	COUNTERPARTS
	 
	 	 	Each Finance Document may be executed in any number of counterparts, and this has
the same effect as if the signatures on the counterparts were on a single copy of the
Finance Document.

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SECTION 13

GOVERNING LAW AND ENFORCEMENT

	49.	 	GOVERNING LAW
	 
	 	 	This Agreement and all non-contractual obligations arising out of or in connection
with it are governed by English law.
	 
	50.	 	ENFORCEMENT
	 
	50.1	 	Jurisdiction

	 	50.1.1	 	For the benefit of the Finance Parties, the Borrower agrees that the courts of
England have (subject to sub-clause 50.1.3) exclusive jurisdiction to settle any
dispute arising out of or in connection with this Agreement (including a dispute
regarding the existence, validity or termination of this Agreement and claims for
set-off and counterclaim) (a “Dispute”) and for such purpose the Borrower irrevocably
submits to the jurisdiction of the English courts.
	 
	 	50.1.2	 	The Parties agree that the courts of England are the most appropriate and convenient
courts to settle Disputes and accordingly no Party will argue to the contrary.
	 
	 	50.1.3	 	This Clause 50.1 (Jurisdiction) is for the benefit of the Finance Parties only. As a
result, no Finance Party shall be prevented from taking proceedings relating to a
Dispute in any other courts with jurisdiction. To the extent allowed by law, the
Finance Parties may take concurrent proceedings in any number of jurisdictions.

	50.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, the
Borrower:

	 	50.2.1	 	irrevocably appoints Law Debenture Corporate Services Limited at Fifth Floor, 100
Wood Street, London EC2V 7EX, United Kingdom, as its agent for service of process in
relation to any proceedings before the English courts in connection with any Finance
Document;
	 
	 	50.2.2	 	agrees that failure by an agent for service of process to notify the Borrower of the
process will not invalidate the proceedings concerned; and
	 
	 	50.2.3	 	if the agent referred to in Clause 50.2.1 ceases to be appointed, agrees to appoint
another agent with an address in England, promptly upon request by the Agent and
authorises the Agent to appoint another agent if the Borrower fails to appoint one
following such request.

This Agreement has been entered into on the date stated at the beginning of this Agreement
and executed as a deed by the Parties and is intended to be and is delivered by them as a deed on
the date specified above.

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SCHEDULE 1

The Original Lenders

	 	 	 	 	 
	Name of Original Lender	 	Commitment ($)
	Standard Bank PLC

	 	 	120,000,000	 

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SCHEDULE 3

Requests

Part 1

Form of Utilisation Request

From:

To:             [Agent]

Dated:

Dear Sirs

MI Energy Corporation — $150,000,000 Facility Agreement

dated [       ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement
have the same meaning in this Utilisation Request unless given a different meaning in this
Utilisation Request.
	 
	2.	 	We wish to borrow a Loan on the following terms:

	 	 	 	 	 
	 

	 	Proposed Utilisation Date:
	 	[       ] (or, if that is not a Business Day,
the next Business Day)
	 

	 	Amount:
	 	[       ] or, if less, the Facility

	3.	 	We confirm that each condition specified in Clause 4.2 (Further Conditions Precedent)
is satisfied on the date of this Utilisation Request.
	 
	4.	 	The proceeds of this Loan should be credited to [the Offshore Collection Account] / [the Debt
Service Reserve Account] / [insert Standard Bank account for retention of fees, costs and
expenses] / [insert Standard Bank account for repayment of Bridge Facility]  [insert details of
accounts specified by SPDB and LCCU for direct disbursement in repayment of their loans] / [insert details of account specified by Microbes for direct disbursement in payment of the
settlement sum under the Termination Agreement] / [insert details of account for payment of
any other item contemplated under Clause 3.1].1
	 
	5.	 	This Utilisation Request is irrevocable.

Yours faithfully

         
              
            
             
            

authorised signatory for

MI Energy Corporation

 

			
	1	 	Complete as appropriate.

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Part 2

Form of Selection Notice

From:

To:             [Agent]

Dated:

Dear Sirs

MI Energy Corporation — $150,000,000 Facility Agreement

dated [       ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Selection Notice. Terms defined in the Agreement have
the same meaning in this Selection Notice unless given a different meaning in this Selection
Notice.
	 
	2.	 	We refer to the Loan which has an Interest Period ending on [       ].
	 
	3.	 	We request that the next Interest Period for the Loan is [one / two / three] Months.
	 
	4.	 	This Selection Notice is irrevocable.

Yours faithfully

          
             
            
           
              

authorised signatory for

MI Energy Corporation

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SCHEDULE 4

Form of Transfer Certificate

			
	To:	 	[       ] as Agent

			
	From:	 	[The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

Dated:

MI Energy Corporation — $150,000,000 Facility Agreement

dated [       ] (the “Agreement”)

	1.	 	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement
have the same meaning in this Transfer Certificate unless given a different meaning in this
Transfer Certificate.
	 
	2.	 	We refer to Clause 24.5 (Procedure for transfer):

	 	(a)	 	The Existing Lender and the New Lender agree to the Existing Lender
transferring to the New Lender by novation all or part of the Existing Lender’s
Commitment, rights and obligations referred to in the Schedule in accordance with
Clause 24.5 (Procedure for transfer).
	 
	 	(b)	 	The proposed Transfer Date is [       ].
	 
	 	(c)	 	The Facility Office, address, e-mail address, fax number and attention details
for notices of the New Lender for the purposes of Clause 43.2 (Addresses) are set out
in the Schedule.

	3.	 	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations
set out in Clause 24.4 (Limitation of responsibility of Existing Lenders).
	 
	4.	 	This Transfer Certificate may be executed in any number of counterparts and this has the same
effect as if the signatures on the counterparts were on a single copy of this Transfer
Certificate.
	 
	5.	 	This Transfer Certificate is governed by English law.

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THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number, e-mail address, and attention details for notices and

account details for payments,]

	 	 	 	 	 
	 

	 	[Existing Lender]
	 	[New Lender]
	 
	 	 	 	 
	 

	 	By:
	 	By:

          This Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [       ].

          [Agent]

          By:

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SCHEDULE 5

Form of Accession Undertaking

			
	To:	 	[Insert full name of current Security Trustee], for itself and each of the other Parties
to the Facility Agreement referred to below.

THIS UNDERTAKING is made on [date] by [insert full name of new Lender / Hedge Counterparty / Agent
/ Technical Bank] (the “Acceding [Lender / Hedge Counterparty / Agent / Technical Bank]”) in
relation to the Facility Agreement (the “Facility Agreement”) dated  [     ] between [INSERT NAME OF
SECURITY TRUSTEE] as security trustee, [INSERT NAMES OF AGENT] as agent, the Lenders, the Borrower
and others. Terms defined in the Facility Agreement shall bear the same meanings when used in this
Undertaking.

In consideration of the Acceding [Lender / Hedge Counterparty / Agent / Technical Bank] being
accepted as [a Lender / Agent / Hedge Counterparty / Technical Bank] for the purposes of the
Facility Agreement, the Acceding [Lender / Hedge Counterparty / Agent / Technical Bank] confirms
that, as from [date], it intends to be party to the Facility Agreement as a [Lender / Agent /
Hedge Counterparty / Technical Bank], and undertakes to perform all the obligations expressed in
the Facility Agreement to be assumed by [an Agent / a Lender / a Hedge Counterparty / a Technical
Bank] and agrees that it shall be bound by all the provisions of the Facility Agreement, as if it
had been an original party to the Facility Agreement.

[The following documents, having been approved in accordance with the terms of the Facility
Agreement shall be treated as “Hedge Agreements” for the purpose of the Facility Agreement:
[specify documents].]

This Undertaking shall be governed by and construed in accordance with English law.

THIS UNDERTAKING has been entered into on the date stated above.

Acceding [Lender / Agent / Hedge Counterparty / Technical Bank]

[EXECUTED as a deed

[insert full name of Acceding

Lender, Hedge Counterparty, Agent or Technical Bank]

By:

Address:

Fax:

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	Accepted by the Security Trustee:

	 	Accepted by the Agent	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

for and on behalf of

	 	 

for and on behalf of
	 	 
	 
	 	 	 	 
	[Insert actual name of Security
Trustee]

	 	[Insert actual name of Agent]	 	 
	 
	 	 	 	 
	Date:

	 	Date:	 	 

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SCHEDULE 6

Existing Security

In relation to the Borrower:

	1.	 	Agreement on Maximum Amount Mortgage for Comprehensive Credit Grant (Reference
No.75012006281077) dated 16 June 2006 by and between the Borrower and SPDB.
	 
	2.	 	Cooperative Exploitation Right Maximum Amount Pledge Agreement (Reference No.
75012006281077) dated 16 June 2006 by and between the Borrower and SPDB.
	 
	3.	 	Pledge of Deposit Bill (Reference No. DL1505010033) provided by the Borrower as security for
the Short-term Loan Agreement (Reference No. DL1505010033).
	 
	4.	 	Pledge Agreement (Reference No. 200501045) dated 9 July 2005 by and between Far East and
LCCU.
	 
	5.	 	Asset Mortgage Agreement dated 6 September 2006 by and between MIE and LCCU as security for
the Loan Agreement (Reference No. 2006302).
	 
	6.	 	Agreement on Maximum Amount Mortgage for Comprehensive Credit Grant (Reference No.
ZD7501200728164701) dated 24 August 2007 by and between the Borrower and SPDB.
	 
	7.	 	Cooperative Exploitation Right Maximum Amount Pledge Agreement (Reference No.
ZZ7501200728164701) dated 24 August 2007 by and between the Borrower and SPDB.
	 
	8.	 	RMB Entity Fixed Term Deposit Pledge Agreement (Reference No. YZ7501200728133101) dated 10
July 2007 by and between the Borrower and SPDB.
	 
	9.	 	RMB Entity Fixed Term Deposit Pledge Agreement (Reference No. YZ7501200728184901) dated 7
September 2007 by and between the Borrower and
SPDB.

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SCHEDULE 7

Timetables

	 	 	 
	Delivery of a duly completed Utilisation Request (Clause 7.1 (Delivery of a Utilisation
Request for a Loan)) or a Selection Notice (Clause 11 (Interest Periods))

	 	U-5

9.30 a.m.
	 
	 	 
	Agent notifies the Lenders of the Loan
in accordance with Clause 7.6 (Lenders’ participation)

	 	U-3

3.00 p.m.
	 
	 	 
	LIBOR is fixed

	 	Quotation Day as of
 11:00 a.m.

	 	 	 
	“U” =

	 	date of Utilisation or, in the case of a Loan that has already been borrowed, the
first day of the relevant Interest Period for that Loan
	 
	 	 
	“U - X” =

	 	X Business Days prior to “U”

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SCHEDULE 8

The Accounts

	1.	 	ESTABLISHMENT OF THE ACCOUNTS
	 
	1.1	 	The Borrower shall establish with the Offshore Account Bank, and in accordance with the
provisions of the Finance Documents shall maintain, the Offshore Accounts referred to in
paragraphs (a) to (c) (inclusive) of that definition.
	 
	1.2	 	The Borrower shall establish with the Onshore Account Bank, and in accordance with the
provisions of the Finance Documents shall maintain, the Onshore Collection Account.
	 
	2.	 	NOTICE OF SECURITY INTERESTS
	 
	 	 	The Borrower hereby gives notice to the Offshore Account Bank of the Security granted by
the Borrower to the Finance Parties over the Offshore Collection Account and the Debt
Service Reserve Account and the Offshore Account Bank acknowledges
the  same.
	 
	3.	 	OTHER ACCOUNTS
	 
	 	 	The Borrower shall not, without the prior written consent of
the Agent, maintain or
establish any account other than the (a) the Accounts and (b) any joint account which is
required to be maintained separately by the Borrower as operator of any Borrowing Base Asset
or any other Field.
	 
	4.	 	INTEREST
	 
	 	 	Any amounts from time to time standing to the credit of the Offshore Accounts shall bear
interest in the currency in which such amount is denominated in accordance with the rates of
interest generally applicable to similar accounts held with the Offshore Account Bank. All
interest earned on the balance standing to the credit of an Offshore Account shall be
credited to the Offshore Account in respect of which the same was earned.
	 
	5.	 	DEPOSITS
	 
	5.1	 	The Borrower shall procure that all revenues received by it are paid into the Offshore
Collection Account and to the extent not already in dollars shall be
converted by the Offshore
Account Bank in accordance with Clause 10 (Currencies).
	 
	5.2	 	Paragraph 5.1 shall not apply:

	 	(a)	 	to interest earned on any Account;
	 
	 	(b)	 	to the payment of any insurance proceeds received by the Borrower in respect of
any contracts of insurance in relation to any Borrowing Base Asset or other

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	 	 	 	Field which are required to be paid into a joint account under any joint operating
agreement in respect of any Borrowing Base Asset or other Field;

	 	(c)	 	to payments made with the proceeds of a Utilisation made by the Agent direct
to third parties pursuant to a valid Utilisation Request and in accordance with the
requirements of Clause 3.1 (Purpose of the Facility) of this Agreement;
	 
	 	(d)	 	during the period from the date of this Agreement to 31 December 2009, to
payments made by PetroChina pursuant to the Moliqing PSC and the Miao 3 PSC which are
received in the Onshore Collection Account;
	 
	 	(e)	 	to the proceeds of the Second MIE Loan received by the Borrower from Far East
provided that the Borrower directs Far East that such proceeds are to be paid directly
into the SPDB-ZR Loan Account and such proceeds are paid by Far East (for the
Borrower’s account) directly into the SPDB-ZR Loan Account;
	 
	 	(f)	 	to the proceeds of any sums received by the Borrower from SPDB in connection
with the closure of the SPDB-ZR Loan Account following the full repayment by ZR of the
SPBD-ZR Loan, provided that the Borrower first applies all such proceeds in repayment
of the Second MIE Loan; and
	 
	 	(g)	 	to a sum of up to $8,000,000 (or its equivalent in RMB) provided that the
Borrower deposits such sum into the SPBD-ZR Loan Account for the purpose of securing
such amounts in favour of SPDB to facilitate the making by SPDB of the SPDB-ZR Loan to
ZR.

	6.	 	WITHDRAWALS FROM THE ONSHORE COLLECTION ACCOUNT
	 
	6.1	 	Promptly following receipt of any payment in the Onshore Collection Account, the Borrower
shall be entitled to direct the Onshore Account Bank to pay up to 10% of such amount (an
“Onshore Commission Amount”) to an account (an “Onshore Commission Account”) notified by it to
the Agent and the Onshore Account Bank for onward transmission to Global Oil Corporation. The
provisions of Clauses 6.2 and 6.3 shall not apply with respect to any such Onshore Commission
Amount.
	 
	6.2	 	Subject to Clause 6.3 and 6.4, the Borrower shall, until all amounts standing to the credit
of the Onshore Collection Account have been withdrawn, withdraw amounts
from the Onshore Collection Account as required only to make:

	 	(a)	 	Permitted Payments which are included in the then current Operating Budget for
the month in which the relevant Permitted Payment is made (or, for the period
commencing on the date of this Agreement and ending on the first Repayment Date, were
included in the Technical Assumptions used in the Financial Model); and
	 
	 	(b)	 	additional Permitted Payments provided that such additional Permitted Payments
do not exceed 10% of the aggregate Permitted Payments included in

- 130 -

 

	 	 	 	the relevant Operating Budget for such calendar month (or, for the period
commencing on the date of this Agreement and ending on the first Repayment Date,
included in the Technical Assumptions used in the Financial Model).

	6.3	 	At any time an Event of Default is continuing the Agent may, by notice to the Onshore
Account Bank in accordance with the terms of the Onshore Account Agreement, direct that:

	 	(a)	 	the Borrower shall not be permitted to request any transfers, payments or
withdrawals from the Onshore Collection Account unless the relevant transfer, payment
or withdrawal has been approved by the Agent; and
	 
	 	(b)	 	the Onshore Collection Account shall be operated, and transfers and
withdrawals made, solely on the instructions of the Agent.

	6.4	 	At any time during an Operational Lock-up Period the Agent may, by notice to the Onshore
Account Bank in accordance with the terms of the Onshore Account Agreement, direct that:

	 	(a)	 	the Borrower shall not be permitted to request any transfers, payments or
withdrawals from the Onshore Collection Account unless the relevant transfer, payment
or withdrawal has been approved by the Agent; and
	 
	 	(b)	 	the Onshore Collection Account shall be operated, and transfers and
withdrawals made, solely on the instructions of the Agent,

	 	 	provided that the Agent shall direct the Onshore Account Bank to permit withdrawals from
the Onshore Collection Account requested by the Borrower to make Permitted Payments which
are included in the then current Operating Budget and which are due and payable at such
time (or, for the period commencing on the date of this Agreement and ending on the first
Repayment Date, were included in the Technical Assumptions used in the Financial Model)
and which are scheduled to fall due during the immediately succeeding calendar month in
respect of:

	 	(i)	 	Taxes and royalties (including, for the avoidance of doubt, those payable under or
pursuant to the PSCs);
	 
	 	(ii)	 	salaries, and other essential operating costs or expenses; and
	 
	 	(iii)	 	Capital Expenditure which must be incurred by the Borrower in order to avoid a breach
of a PSC.

	7.	 	WITHDRAWALS FROM THE OFFSHORE ACCOUNTS
	 
	7.1	 	Promptly following receipt of any payment in the Offshore Collection Account, the Borrower
shall be entitled to direct the Offshore Account Bank to pay up to 10% of such amount (an
“Offshore Commission Amount”) to an account (an “Offshore Commission Account”) notified by it
to the Agent and the Offshore Account Bank for

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	 	 	onward transmission to Global Oil Corporation. The provisions of Clauses 7.2 to 7.4 shall
not apply with respect to any such Offshore Commission Amount.

	7.2	 	Subject to Clause 7.3, the Borrower may withdraw amounts from the Offshore Collection
Account for the purposes and in the order of priority set out below on the last Business Day
of each calendar month:

	 	(a)	 	to the extent that the amounts standing to the credit of the Onshore
Collection Account and the Onshore Payments Account are insufficient to fund such
Permitted Payments, by credit to the Onshore Payments Account to make:

	 	(i)	 	Permitted Payments which are included in the then current
Operating Budget (or, for the period commencing on the date of this Agreement
and ending on the first Repayment Date, were included in the Technical
Assumptions used in the Financial Model) and which are due or scheduled to
fall due during the immediately succeeding calendar month; and
	 
	 	(ii)	 	additional Permitted Payments provided that such additional
Permitted Payments do not exceed 10% of the aggregate Permitted Payments
included in the relevant Operating Budget for such calendar month (or, for
the period commencing on the date of this Agreement and ending on the first
Repayment Date, included in the Technical Assumptions used in the Financial
Model);

	 	(b)	 	to make payment pari passu of any and all:

	 	(i)	 	interest, principal or other amounts then due and payable
under the Finance Documents; and
	 
	 	(ii)	 	Hedging Costs then due and payable under any Hedging Agreement;

	 	(c)	 	to fund the Debt Service Reserve Account up to the Debt Service Reserve
Requirement;
	 
	 	(d)	 	if the Borrower elects, to fund voluntary prepayments or repayments pursuant
to Clauses 5.5.3, 8.1.3 or 9.3 of this Agreement;
	 
	 	(e)	 	to make payments of any and all interest, principal or other amounts then due
and payable in respect of any Permitted Financial Indebtedness (other than under the
Finance Documents or in respect of any Subordinated Indebtedness) and any other
payment required to be made by the Borrower under a Project Document, to the extent
not already expressly contemplated by this Clause 7;
	 
	 	(f)	 	by transfer to the Distribution Account provided that (i) no Default is
continuing, (ii) the amount standing to the credit of the Debt Service Reserve Account
is equal to the Debt Service Reserve Requirement, (iii) (x) the ZR Loan has been repaid
or prepaid such that the outstanding amount of the ZR Loan is at least $50,000,000 less
than it was as at 29 October 2007 (or, when

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	 	 	 	the ZR Loan is Transferred to Far East as contemplated by paragraph (a)(i) of
clause 8 (Waiver Of Subordination And Repayment Of Shareholder Loans) of the First
Amendment and Restatement Agreement, the Transferred ZR Loan has been repaid or
prepaid such that it is at least $50,000,000 less than the amount of the ZR Loan
as at 29 October 2007) or (y) the Borrower has received at least $50,000,000 in
subscription monies from third parties in connection with any issuance and
allotment of shares in the Borrower to such third parties or (z) the amount of any
such repayment or prepayment, when aggregated with the amount of any such
subscription monies received by the Borrower, is at least $50,000,000, and (iv) on
such date:

	 	(1)	 	the Asset Cover Life Ratio exceeds 1.95:1; and
	 
	 	(2)	 	the Debt Service Cover Ratio exceeds 1.75:1.

	7.3	 	During any Operational Lock-Up Period, the Borrower may withdraw amounts from the Offshore
Collection Account for the purposes and in the order of priority set out below on the last
Business Day of each calendar month:

	 	(a)	 	by credit to the Onshore Payments Account, to make Permitted Payments which
are included in the then current Operating Budget (or, for the period commencing on
the date of this Agreement and ending on the first Repayment Date, were included in
the Technical Assumptions used in the Financial Model) and which are due or scheduled
to fall due during the immediately succeeding calendar month in respect of:

	 	(i)	 	Taxes and royalties (including, for the avoidance of
doubt, those payable under or pursuant to the PSCs);
	 
	 	(ii)	 	salaries, and other essential operating costs and expenses; and
	 
	 	(iii)	 	Capital Expenditure which must be incurred by the
Borrower in order to avoid a breach of a PSC;

	 	(b)	 	towards the prepayment of the Loans so as to ensure that, after effecting such
prepayment, the outstanding Loans are equal to the Available Facility.

	7.4	 	At any time after an Event of Default has occurred and for so long as the same is continuing,
the Agent may notify the Offshore Account Bank of the occurrence of such event and upon
receipt by the Offshore Account Bank of such notice until revocation of such notice by the
Agent:

	 	(a)	 	the Borrower shall not be permitted to request any transfers, payments or withdrawals
from the Offshore Collection Account or the Debt Service Reserve Account unless the relevant
transfer, payment or withdrawal has been approved by the Agent; and

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	 	(b)	 	the Offshore Collection Account and the Debt Service Reserve Account shall be operated,
and transfers and withdrawals shall be made, solely on the instructions of the Agent.

	7.5	 	If the Borrower fails to make any payment of any amount under the Finance Documents on the
due date for payment, the Agent may direct the Offshore Account Bank to transfer monies
standing to the credit of the Debt Service Reserve Account in an amount not exceeding the
amount due and payable but unpaid by the Borrower by payment to the account of the Agent for
the purpose of making such payment in accordance with such Finance Document.
	 
	7.6	 	Except as set out in the Finance Documents, no person shall be entitled to require the
Offshore Account Bank to make, and the Offshore Account Bank shall not make, any payment out
of funds standing to the credit of the Offshore Accounts.
	 
	7.7	 	Notwithstanding anything to the contrary contained herein:

	 	(a)	 	the Borrower may make transfers and withdrawals from the Distribution Account
at any time without restriction; and
	 
	 	(b)	 	any amount contributed to the Borrower by a shareholder in accordance with the
provisions of this Agreement for the purpose of a buy-back or redemption of the
Minority Shares may be applied by the Borrower to fund and complete such buy-back or
redemption and, if it is so applied within 7 days of receipt of the same by the
Borrower, the provisions of Clauses 7.2 to 7.4 above shall not apply with respect to
such amount.

	8.	 	OPERATION OF DEBT SERVICE RESERVE ACCOUNT

	 	(a)	 	The Borrower shall ensure that, on the first Utilisation Date, the Debt
Service Reserve Account is funded in an amount equal to the Debt Service Reserve
Requirement.
	 
	 	(b)	 	After the first Utilisation Date, the Borrower shall ensure that payments are
made into the Debt Service Reserve Account in accordance with Clause 7.1 as required
to ensure that the balance standing to the credit of the Debt Service Reserve Account
is at least equal to the Debt Service Reserve Requirement.
	 
	 	(c)	 	Sums standing to the credit of the Debt Service Reserve Account shall on each
Repayment Date, if necessary and to the extent required following the application for
such purpose of any amounts standing to the credit of the Offshore Collection Account
in accordance with Clause 7, be distributed by the Offshore Account Bank in payment to
the Agent (on behalf of the Lenders pro rata) of principal and interest due but unpaid
under the Facility on such Repayment Date.

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	 	(d)	 	If at any time the amount standing to the credit of the Debt Service Reserve
Account exceeds the Debt Service Reserve Requirement the Offshore Account Bank
shall:

	 	(i)	 	if the Asset Cover Life Ratio exceeds 1.95 : 1 and the
Debt Service Cover Ratio exceeds 1.75 : 1, promptly transfer such excess
amount to the Distribution Account; and
	 
	 	(ii)	 	if either the Asset Cover Life Ratio does not exceed 1.95
: 1 or the Debt Service Cover Ratio does not exceed 1.75 : 1, promptly
transfer such excess amount to the Offshore Collection Account.

	 	(e)	 	The Offshore Account Bank shall rely on certifications by the Agent for
amounts transferred or withdrawn from the Debt Service Reserve Account.

	9.	 	ACCOUNT MANDATES
	 
	 	 	The Offshore Account Bank shall maintain the Accounts in accordance with:

	 	(a)	 	any mandate agreed between the Borrower and the Offshore Account Bank; and
	 
	 	(b)	 	the provisions of the Finance Documents,

	 	 	provided that, if there is any conflict between the Finance Documents and any mandate
agreed between the Borrower and the Offshore Account Bank, the provisions of the Finance
Documents shall prevail but only to the extent that the Offshore Account Bank would not be
in breach of any law as a result.

	10.	 	CURRENCY
	 
	 	 	The Borrower shall direct the Offshore Account Bank to convert monies received by it or paid
by it or paid on its behalf to the Offshore Account Bank for crediting to an Offshore
Account which is not denominated in the currency of that Offshore Account into the currency
of such Offshore Account. Any such conversion by the Account
Bank shall be made at rates of exchange which are generally applicable to similar
transactions carried out by the Offshore Account Bank for its corporate customers.
	 
	11.	 	GENERAL PROVISIONS
	 
	11.1	 	The Offshore Account Bank will provide the Borrower, for each calendar month, a full
statement of the balance of and payments into and from the Offshore Accounts. Copies of such
statements will be provided to the Agent.
	 
	11.2	 	The Offshore Account Bank agrees that it shall not claim or exercise any security interest,
set-off or counterclaim or other right in respect of the Offshore Accounts, the funds in such
Offshore Accounts or debts represented by them.

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SCHEDULE 9

Form Of Subordination Agreement

MI ENERGY CORPORATION

as Borrower

[ • ]

as Junior Creditor

and

STANDARD BANK ASIA LIMITED

as Security Trustee

 

SUBORDINATION AGREEMENT

(MIE LOAN — BORROWING BASE FACILITY)

 

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CONTENTS

	 	 	 	 	 
	Clause	 	Page
	1. Definitions And Interpretation 
	 	 	138	 
	 
	2. Subordination 
	 	 	139	 
	 
	3. Representations 
	 	 	140	 
	 
	4. Other Obligations 
	 	 	142	 
	 
	5. Turnover 
	 	 	142	 
	 
	6. Subordination On Insolvency 
	 	 	143	 
	 
	7. Provisions As To Subordination 
	 	 	144	 
	 
	8. Rights Of The Security Trustee 
	 	 	145	 
	 
	9. Parties 
	 	 	146	 
	 
	10. Notices 
	 	 	146	 
	 
	11. Amendments 
	 	 	147	 
	 
	12. Further Assurance 
	 	 	147	 
	 
	13. Law 
	 	 	147	 
	 
	14. Enforcement 
	 	 	148	 
	 
	15. Perpetuity Period 
	 	 	148	 
	 
	16. Failure Of Trust 
	 	 	148	 

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THIS AGREEMENT is dated

BETWEEN

	(1)	 	MI ENERGY CORPORATION, a corporation organised and existing under the laws of the Cayman
Islands and having an office at: c/o M&C Corporate Services Limited, P.O. Box 309 GT, Ugland
House, South Church Street, George Town, Grand Cayman, Cayman Islands (the “Borrower”);
	 
	(2)	 	[•] [a company organised under the laws of [•]] (the “Junior Creditor”); and
	 
	(3)	 	STANDARD BANK ASIA LIMITED as security trustee for the Secured Parties (as defined in the
Facility Agreement) (the “Security Trustee”).

WHEREAS:

	1.	 	The Lenders (as defined in the Facility Agreement) have agreed to make available to the
Borrower loan facilities of up to $150,000,000 upon the terms and subject to the conditions
of the Facility Agreement.
	 
	2.	 	It is a condition under the Facility Agreement that the Junior Parties enter into this
Agreement.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Terms defined
	 
	 	 	In this Agreement:
	 
	 	 	“Facility Agreement” means the facility agreement dated [       ] between MI Energy Corporation
as borrower, Standard Bank Asia Limited as agent, arranger, security trustee, technical
bank and account bank and the financial institutions defined therein as the Lenders, as the
same may be amended, restated, varied or supplemented from time to time.
	 
	 	 	“Finance Documents” has the meaning given in the Facility Agreement.
	 
	 	 	“Junior Parties” means the Borrower and the Junior Creditor.
	 
	 	 	“Senior Liabilities” means all obligations at anytime due, owing or incurred by the
Borrower to the Secured Parties under the Finance Documents, whether present or future,
actual or contingent (and whether incurred solely or jointly and whether as principal or
surety or in some other capacity).
	 
	 	 	“Subordinated Indebtedness” has the meaning given in Clause 2.1.2(a).
	 
	 	 	“Subordination Period” means the period beginning on the date of this Agreement and ending
on the date on which the Security Trustee is satisfied that the Senior Liabilities have been
irrevocably paid or discharged in full.

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	1.2	 	Terms defined in other Finance Documents
	 
	 	 	Unless defined in this Agreement or the context otherwise requires, a term defined in the
Facility Agreement or in any other Finance Document has the same meaning in this Agreement
or any notice given under or in connection with this Agreement, as if:

	 	1.2.1	 	the term “Borrower” appearing in the Facility Agreement referred to any
Junior Party; and
	 
	 	1.2.2	 	all references in such defined terms to the Facility Agreement were a
reference to this Agreement or such notice.

	1.3	 	Construction
	 
	 	 	Clause 1.2 (Construction) of the Facility Agreement will apply as if incorporated in this
Agreement or in any notice given under or in connection with this Agreement, as if all
references in that Clause to the Facility Agreement were a reference to this Agreement or
such notice.
	 
	1.4	 	Application of provisions in Facility Agreement
	 
	 	 	Clauses 44.1 (Evidence of Indebtedness), 44.2 (Certificates and Determinations), 45 (Partial
invalidity), 46 (Remedies and waivers) and 47 (Amendments and waivers) of the Facility
Agreement are deemed to form part of this Agreement as if expressly incorporated into it as
if all references in such Clauses to:

	 	1.4.1	 	the Facility Agreement were a reference to this Agreement; and
	 
	 	1.4.2	 	the Borrower were a reference to the Junior Parties.

	1.5	 	Third party rights
	 
	 	 	A person who is not a party to this Agreement has no rights under the Contracts (Rights of
Third Parties) Act 1999 to enforce or enjoy the benefit of any term of this Agreement.
	 
	2.	 	SUBORDINATION

	 	2.1.1	 	Except as provided in this Agreement, the rights of the Junior Creditor in
respect of the Subordinated Indebtedness are subordinated to the Senior Liabilities.
	 
	 	2.1.2	 	The Junior Creditor undertakes to the Secured Parties that it shall not,
except as the Agent has previously consented in writing:

	 	(a)	 	unless Clause 6 (Subordination on insolvency) applies,
demand or receive payment or any distribution in respect, or on account of,
any indebtedness owing to it by the Borrower (“ Subordinated Indebtedness”)
or apply any money or assets in discharge of the Subordinated Indebtedness;
	 
	 	(b)	 	discharge any of the Subordinated Indebtedness by set off;

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	 	(c)	 	permit to subsist or receive any Security for any of the Subordinated
Indebtedness;
	 
	 	(d)	 	permit to subsist or receive any guarantee or other
assurance against loss in respect of any of the Subordinated Indebtedness;
	 
	 	(e)	 	amend, vary, waive or release any term relating to the
Subordinated Indebtedness or allow any of the foregoing to occur; or
	 
	 	(f)	 	assign, factor or dispose of, or create or permit to subsist
any Security over, any of the Subordinated Indebtedness or its proceeds or
any interest in the Subordinated Indebtedness or its proceeds to, or in
favour of, any person other than the Secured Parties.

	 	2.1.3	 	The Borrower undertakes to the Secured Parties that it shall not, except as
the Agent has previously consented in writing;

	 	(a)	 	make any payment which the Junior Creditor is prohibited
from receiving by the terms of this Agreement; or
	 
	 	(b)	 	take or omit to take any action or step whereby the
subordination of all or any of the Junior Liabilities as contemplated by this
Agreement could reasonably be expected to be terminated, impaired or
adversely affected.

	 	2.1.4	 	Notwithstanding anything else to the contrary herein, the Secured Parties
agree that the Junior Creditor shall be entitled to at any time claim and receive, and
the Borrower shall be entitled to make, in each case subject to compliance with the
applicable order of priority, payment of any amount that the Borrower is permitted to
transfer to the Distribution Account pursuant to Schedule 8 (The Accounts) of the
Facility Agreement and any amount that the Borrower is permitted to pay to the Junior
Creditor pursuant to paragraphs 6.2 and 7.2 of Schedule 8 (The Accounts) of the
Facility Agreement.

	3.	 	REPRESENTATIONS
	 
	 	 	Each Junior Party makes the representations and warranties set out in this Clause 3
(Representations) to each Secured Party.
	 
	3.1	 	Status

	 	3.1.1	 	It is duly organised and validly existing under the law of its jurisdiction of
organisation.
	 
	 	3.1.2	 	It has the power to own its assets and to carry on its business as it is
being conducted.

	3.2	 	Binding obligations
	 
	 	 	The obligations expressed to be assumed by it in this Agreement are, subject to any general
principles of law as at the date of this Agreement limiting its obligations which are
specifically referred to in any legal opinion delivered pursuant to Clause 4

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	 	 	(Conditions of Utilisation) of the Facility Agreement, legal, valid, binding and
enforceable obligations.

	3.3	 	Non-conflict with other obligations
	 
	 	 	The entry into and performance by it of, and the transactions contemplated by, this
Agreement do not and will not conflict with:

	 	3.3.1	 	any material law or regulation applicable to it;
	 
	 	3.3.2	 	its constitutional documents; or
	 
	 	3.3.3	 	any material agreement or instrument binding upon it or any of its assets or
constitute a default (however described) under any such material agreement or
instrument, or permit any counterparty to terminate any such material agreement or
instrument.

	3.4	 	Power and authority
	 
	 	 	It has the power to enter into, perform and deliver, and has taken all necessary action to
authorise its entry into, performance and delivery of, this Agreement and the transactions
contemplated by this Agreement.
	 
	3.5	 	Validity and admissibility in evidence
	 
	 	 	All Authorisations required or desirable:

	 	3.5.1	 	to enable it lawfully to enter into, exercise its rights and comply with its
obligations under this Agreement; and
	 
	 	3.5.2	 	to make this Agreement admissible in evidence in its jurisdiction of
organisation,

	 	 	have been obtained or effected and are in full force and effect.

	3.6	 	Governing law and enforcement

	 	3.6.1	 	The choice of English law as the governing law of this Agreement will be
recognised and enforced in its jurisdiction of organisation.
	 
	 	3.6.2	 	Any judgment obtained in England in relation to this Agreement will be
recognised and enforced in its jurisdiction of organisation.

	3.7	 	Repetition
	 
	 	 	The representations and warranties set out in Clauses 3.1 (Status) to 3.4 (Power and
authority) and Clause 3.6 (Governing law and enforcement) are made by each Junior Party on
the date of this Agreement on the date of each Utilisation Request and on the first day of
each Interest Period (by reference to the facts and circumstances then existing).

- 141 -

 

	4.	 	OTHER OBLIGATIONS

	 	4.1.1	 	The Junior Creditor undertakes to the Security Trustee that unless Clause 6
(Subordination on insolvency) applies, it shall not, except if the Security Trustee
has previously consented in writing:

	 	(a)	 	enforce the Subordinated Indebtedness by execution of
judgment or otherwise; or
	 
	 	(b)	 	initiate or support or permit to be taken any steps with a
view to any insolvency, dissolution or similar proceedings in respect of the
Borrower (whether relating to the default in payment of the Subordinated
Indebtedness or any other liability owed).

	 	4.1.2	 	The Junior Creditor undertakes to the Security Trustee that, following the
occurrence of an Event of Default which is continuing, it shall not, except if the
Security Trustee has previously consented in writing:

	 	(a)	 	unless Clause 6 (Subordination on insolvency) applies:

	 	(i)	 	declare any Subordinated Indebtedness
prematurely due and payable; or
	 
	 	(ii)	 	otherwise exercise any remedy for
the recovery of the Subordinated Indebtedness;

	 	(b)	 	subordinate any of the Subordinated Indebtedness or its
proceeds to any person other than the Secured Parties;
	 
	 	(c)	 	transfer by novation or otherwise any of its rights or
obligations in respect of any Subordinated Indebtedness to any person; or
	 
	 	(d)	 	take or omit to take any action whereby the subordination
intended to be effected by this Agreement may be impaired.

	 	4.1.3	 	The undertakings given by each Junior Party in this Clause 4 (Other
obligations) and in paragraphs (b) and (c) of Clause 2 (Subordination) will remain in
force until the end of the Subordination Period.

	5.	 	TURNOVER
	 
	5.1	 	Turnover

	 	5.1.1	 	If:

	 	(a)	 	the Junior Creditor receives a payment or distribution in respect of any
of the Subordinated Indebtedness; or
	 
	 	(b)	 	any person makes any payment or distribution on account of
the purchase or other acquisition of any of the Subordinated Indebtedness,

- 142 -

 

	 	 	 	the Junior Creditor shall hold the same in trust for and as the property of the
Secured Parties and pay and distribute it to the Security Trustee for application
towards the liabilities of the Borrower under the Finance Documents until such
liabilities are irrevocably paid in full.

	 	5.1.2	 	 If any of the Subordinated Indebtedness is discharged by set-off at a
time or in a manner which is contrary to this Agreement, the Junior Creditor will
immediately pay an amount equal to that discharge to the Security Trustee for
application towards the liabilities of the Borrower under the Finance Documents until
such liabilities are irrevocably paid in full.

	5.2	 	Exercise of Junior Creditor rights
	 
	 	 	In the event:

	 	5.2.1	 	of any dissolution, winding up, liquidation or reorganisation of the
Borrower; or
	 
	 	5.2.2	 	that any Event of Default is continuing,

	 	 	the Security Trustee may, and is hereby irrevocably authorised and empowered (in its own
name or in the name of the Junior Creditor or otherwise) but will have no obligation to:

	 	(a)	 	demand, sue for, collect and/or secure every payment or distribution of assets
of the Borrower to which the Junior Creditor would be entitled in respect of the
Subordinated Indebtedness; and
	 
	 	(b)	 	file claims and proofs of claim in the name of the Junior Creditor in respect
of the Subordinated Indebtedness or take any other action as the Security Trustee may
deem necessary or advisable for the exercise or enforcement of any of the rights or
interests of the Security Trustee.

	6.	 	SUBORDINATION ON INSOLVENCY
	 
	 	 	If an Event of Default occurs and is continuing, then:

	 	6.1.1	 	the Subordinated Indebtedness will be subordinate in right of payment to the
liabilities of the Borrower under the Finance Documents;
	 
	 	6.1.2	 	the Security Trustee on behalf of the Secured Parties shall, and is
irrevocably authorised on behalf of the Junior Creditor to:

	 	(a)	 	claim, enforce and prove for the Subordinated Indebtedness;
	 
	 	(b)	 	file claims and proofs, give receipts and take all such
proceedings and do all such things as it sees fit to recover the Subordinated
Indebtedness; and

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	 	(c)	 	receive all distributions on the Subordinated Indebtedness for
application towards the liabilities of the Borrower under the Finance
Documents until such liabilities are irrevocably paid in full;

	 	6.1.3	 	if and to the extent that the Security Trustee is not entitled to do any of
the foregoing, the Junior Creditor will do so in good time in accordance with any
directions as may be given to the Junior Creditor by the Security Trustee;
	 
	 	6.1.4	 	the Junior Creditor will hold all distributions in cash or in kind received
or receivable by it in respect of the Subordinated Indebtedness in trust for and as
the property of the Secured Parties and will (at the Junior Creditor’s expense) pay
and transfer the same to the for application towards the liabilities of the Borrower
under the Finance Documents until such liabilities are irrevocably paid in full; and
	 
	 	6.1.5	 	the trustee in bankruptcy, liquidator, assignee or other person distributing
the assets of the Borrower or its proceeds is directed to pay distributions on the
Subordinated Indebtedness direct to the Secured Parties for application towards the
liabilities of the Borrower under the Finance Documents until such liabilities are
irrevocably paid in full. The Junior Creditor will give all such notices and do all
such things as the Agent may direct to give effect to this provision.

	7.	 	PROVISIONS AS TO SUBORDINATION
	 
	7.1	 	Continuing agreement
	 
	 	 	This Agreement will apply in respect of the Senior Liabilities notwithstanding any
intermediate payment in whole or in part of the Senior Liabilities.
	 
	7.2	 	Waiver
	 
	 	 	The subordination effected by, and the obligations of each Junior Party to the Security
Trustee under, this Agreement will not be affected by any act, omission or circumstances
which, but for this provision, might operate to release or otherwise exonerate all or any
of the Junior Parties from their respective obligations under this Agreement or affect such
obligations including, without limitation, and whether or not known by any Junior Party or
any other person:

	 	7.2.1	 	any Security or right of any Secured Party in respect of the Senior Liabilities;
	 
	 	7.2.2	 	any time or indulgence granted by the Security Trustee to any Junior Party or
to any other person or any variation, amendment, novation, supplement or extension of
the terms of any Finance Document or any Security in respect of the Senior Liabilities;
	 
	 	7.2.3	 	any arrangement or compromise between the Security Trustee and any Junior
Party or any other person;

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	 	7.2.4	 	any dealing with, exchange, release or invalidity of any Finance Document or
any Security in respect of the Senior Liabilities;
	 
	 	7.2.5	 	any omission on the part of the Security Trustee to enforce any of its rights
against the Borrower or any other person or any Security in respect of the Senior
Liabilities;
	 
	 	7.2.6	 	the winding-up, dissolution or administration of any Junior Party or any
other person or any change in its status, function or control;
	 
	 	7.2.7	 	any of the obligations of any Junior Party or any other person under any
Finance Document to which it is a party being or becoming illegal, invalid or
unenforceable;
	 
	 	7.2.8	 	any action taken or purported to be taken under Clause 12 (Further assurance)
(whether or not any such action is authorised by such Clause); or
	 
	 	7.2.9	 	any other fact or circumstances whatsoever and whether or not similar to any
of the foregoing which could or might in any way diminish any Junior Party’s or any
other person’s obligations or the rights of the Security Trustee under this Agreement.

	7.3	 	Consent to Finance Documents
	 
	 	 	The Junior Creditor irrevocably consents to the terms of each Finance Document and to any
amendment or waiver made to any Finance Document pursuant to Clause 47 (Amendments and
waivers) of the Facility Agreement.
	 
	8.	 	RIGHTS OF THE SECURITY TRUSTEE
	 
	8.1	 	Delegation by the Security Trustee

	 	8.1.1	 	The Security Trustee may, at any time, delegate by power of attorney or
otherwise to any person for any period, all or any of the rights, powers and
discretions vested in it by this Agreement.
	 
	 	8.1.2	 	The delegation may be made upon any terms and conditions (including the power
to sub-delegate) and subject to any restrictions that the Security Trustee may think
fit in the interests of the Secured Parties.
	 
	 	8.1.3	 	The Security Trustee will not be liable for any losses to Junior Party or any
liability arising as a result of taking or refraining from taking any action in
relation to this Agreement, whether in accordance with an instruction from the Agent or
otherwise unless directly caused by its gross negligence or wilful misconduct and
references in this Agreement to the Security Trustee will where the context so admits
include references to any delegates so appointed.

	8.2	 	Waiver of defences
	 
	 	 	Neither the provisions of this Agreement, nor the obligations of the Junior Parties
hereunder, will be affected by an act, omission, matter or thing which, but for this

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	 	 	Clause 8.2, would reduce, release or prejudice the subordination and priorities in this
Agreement including:

	 	8.2.1	 	any time, waiver or consent granted to, or composition with any person;
	 
	 	8.2.2	 	the release of any Junior Party or any other person under the terms of any
composition or arrangement with any creditor of such Junior Party;
	 
	 	8.2.3	 	the taking, variation, compromise, exchange, renewal or release of, or
refusal or neglect to perfect, take up or enforce, any rights against, or security
over assets of, the Borrower or any non-presentation or non-observance of any
formality or other requirement in respect of any instrument or any failure to realise
the full value of any Transaction Security;
	 
	 	8.2.4	 	any incapacity or lack of power, authority or legal personality of or
dissolution or change in the members or status of a Junior Party or any other person;
	 
	 	8.2.5	 	any amendment (however fundamental) or replacement of this Agreement or any
other document or security;
	 
	 	8.2.6	 	any unenforceability, illegality, invalidity or non-provability of any
obligation of any person under this Agreement or any other document or security;
	 
	 	8.2.7	 	any intermediate payment or discharge of any of the Senior Liabilities in
whole or in part; or
	 
	 	8.2.8	 	any insolvency or similar proceedings affecting any person.

	9.	 	PARTIES
	 
	 	 	No Junior Party may assign or otherwise transfer its rights and obligations under this
Agreement.
	 
	10.	 	NOTICES
	 
	10.1	 	Communications in writing
	 
	 	 	Any communication to be made under or in connection with this Agreement shall be made in
writing and, unless otherwise stated, may be made by fax, letter or e-mail.
	 
	10.2	 	Addresses
	 
	 	 	The address, fax number and e-mail address (and the department or officer, if any, for
whose attention the communication is to be made) of each party to this Agreement for any
communication or document to be made or delivered under or in connection with this
Agreement is:

	 	10.2.1	 	in the case where a person becomes a party to this Agreement on the day on which this
Agreement is entered into, that identified with its name in the execution pages to this
Agreement; and

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	 	10.2.2	 	in the case where a person becomes a party to this Agreement after the
day on which this Agreement is entered into, that notified in writing to the
Security Trustee on or prior to the date on which it becomes a party to this
Agreement,

	 	 	or any substitute address, fax number, e-mail address or department or officer as that
party may notify to the other parties by not less than five Business Days’ notice.

10.3 Delivery

	 	10.3.1	 	Any communication or document made or delivered by one person to another under or in
connection with this Agreement will only be effective:

	 	(a)	 	if by way of fax, when received in legible form; or
	 
	 	(b)	 	if by way of letter, when it has been left at the relevant
address or five Business Days after being deposited in the post postage
prepaid in an envelope addressed to it at that address,

	 	 	 	and, if a particular department or officer is specified as part of its address
details provided under Clause 10.2 (Addresses), if addressed to that department or
officer.

	 	10.3.2	 	Any communication or document to be made or delivered to the Security Trustee will
be effective only when actually received by the Security Trustee and then only if it
is expressly marked for the attention of the department or officer identified with the
Security Trustee’s signature below (or any substitute department or officer as the
Security Trustee shall specify for this purpose).

	10.4	 	Notification of address and fax number
	 
	 	 	Promptly upon receipt of notification of an address, fax number or e-mail address or change
of address, fax number or e-mail address pursuant to Clause 10.2 (Addresses) or changing its
own address, fax number or e-mail address, the Security Trustee shall notify the other
parties to this Agreement.
	 
	11.	 	AMENDMENTS
	 
	 	 	No amendment may be made to this Agreement (whether in writing or otherwise) without the
prior written consent of the parties to this Agreement.
	 
	12.	 	FURTHER ASSURANCE
	 
	 	 	Each Junior Party agrees that it will, as soon as reasonably practicable, at the direction
of the Security Trustee (acting reasonably), execute and deliver at its own expense any
document (executed as a deed or under hand as the Security Trustee may direct) and do any
act or thing required to confirm or establish the validity and enforceability of the
subordination effected by, and the obligations of each Junior Party to the Secured Parties
under, this Agreement.
	 
	13.	 	LAW
	 
	 	 	This Agreement is governed by English law.

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	14.	 	ENFORCEMENT
	 
	14.1	 	Jurisdiction

	 	14.1.1	 	For the benefit of the Secured Parties, each Junior Party agrees that the courts of
England have (subject to paragraph (c) below) exclusive jurisdiction to settle any
dispute arising out of or in connection with this Agreement (including a dispute
regarding the existence, validity or termination of this Agreement and claims for
set-off and counterclaim) (a “Dispute”) and for such purpose each Junior Party
irrevocably submits to the jurisdiction of the English courts.
	 
	 	14.1.2	 	The parties to this Agreement agree that the courts of England are the most
appropriate and convenient courts to settle Disputes and accordingly no party will
argue to the contrary.
	 
	 	14.1.3	 	This Clause 14.1 (Jurisdiction) is for the benefit of the Secured Parties only. As a
result, no Secured Party shall be prevented from taking proceedings relating to a
Dispute in any other courts with jurisdiction. To the extent allowed by law, the
Secured Parties may take concurrent proceedings in any number of jurisdictions.

	14.2	 	Service of Process
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, each Junior
Party:

	 	14.2.1	 	irrevocably appoints [•] as its agent for service of process in relation to any
proceedings before the English courts in connection with this Agreement;
	 
	 	14.2.2	 	agrees that failure by an agent for service of process to notify the Junior
Parties of the process will not invalidate the proceedings concerned; and
	 
	 	14.2.3	 	if the agent referred to in paragraph (a) ceases to be appointed, agrees to appoint
another agent with an address in England, promptly upon request by the Security
Trustee and authorises the Security Trustee to appoint another agent if the relevant
Junior Party fails to appoint one following such request.

	15.	 	PERPETUITY PERIOD
	 
	 	 	The perpetuity period for the trusts in this Agreement is 80 years.
	 
	16.	 	FAILURE OF TRUST
	 
	 	 	If, for any reason, a trust in favour of, or a holding of property for, the Secured Parties
is invalid or unenforceable, the Junior Creditor will pay and deliver to the Security
Trustee (for the account of the Secured Parties) an amount equal to the relevant payment,
receipt or recovery.

This Agreement has been signed by the Security Trustee and entered into as a deed by the Junior
Parties on the date stated at the beginning of this Agreement.

- 148 -

 

EXECUTION PAGE

	 	 	 	 	 	 	 	 	 	 	 
	The Borrower	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	EXECUTED AS A DEED by MI	 	 	)	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	ENERGY CORPORATION:	 	 	)	 	 	Duly Authorised Signatory

	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 

	 	 	 	 	)	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	In the presence of:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Signature of witness
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Occupation:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	(Note: These details are to be
completed in the
witness’s own handwriting.)	 	 	 	 	 	 	 	 

- 149 -

 

The Junior Creditor

	 	 	 	 	 
	[•]2

	 	 	)	 
	 
	 	 	 	 
	 

	 	 	)	 

        
                 
             
            
          

[Authorised Signatory]

       
           
             
               
              

[Authorised Signatory]

Address:

Attention:

Facsimile:

 

			
	2	 	Local counsel to advise on format of signature block.

- 150 -

 

The Security Trustee

SIGNED for and on behalf of

STANDARD BANK ASIA LIMITED

By:

Name:

Title:

Address:

Attention:

Facsimile:

E-mail:

- 151 -

 

SCHEDULE 10

Hedging

	1.	 	Minimum Hedging
	 
	 	 	The Borrower shall enter into Hedge Transactions in amounts and at rates and prices at
least sufficient to ensure that, as determined by the Technical Bank (acting reasonably in
consultation with the Borrower) on a projected basis by reference to the then current
Financial Model, the Borrower will not breach the provisions of Clause 21 (Financial
Covenants) at any time on or before the Scheduled Maturity Date.
	 
	2.	 	Maximum Hedging
	 
	 	 	The Borrower shall not enter into Hedge Transactions for speculative purposes or:

	 	(a)	 	in relation to oil prices, which fix or cap the price of oil produced by the
Borrower relating to volumes exceeding 20% of production for the relevant period;
	 
	 	(b)	 	in relation to interest rates, which relate to more than 100% of the actual
exposure of the Borrower; or
	 
	 	(c)	 	in relation to currency, which relate to more than 100% of the actual exposure
of the Borrower.

	3.	 	Permitted Hedge Counterparties
	 
	 	 	The Borrower may only enter into a Hedge Transaction by entering into a Hedge Agreement
with a Hedge Counterparty.
	 
	4.	 	Termination of Permitted Hedge Agreements
	 
	 	 	A transaction under Hedge Agreement may be terminated prior to its maturity:

	 	(a)	 	by the Borrower only in the circumstances provided for in such Hedge
Agreement; or
	 
	 	(b)	 	by a Hedge Counterparty at the request of the Agent, if the Hedge Counterparty
is entitled to do so pursuant to the terms of such Hedge Agreement and the Agent has
issued a notice under Clause 34.3 (Hedge Counterparties: required enforcement) of this
Agreement; or
	 
	 	(c)	 	by a Hedge Counterparty only in the circumstances provided for in such Hedge
Agreement and as permitted by Clause 34.2 (Hedge Counterparties: permitted
enforcement).

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SCHEDULE 11

Operating Budgets

	1.	 	The Borrower must, not later than 60 days before the end of each of its financial years,
provide to the Agent a draft operating budget for the following financial year, showing a
forecast of likely expenditure (including capital expenditure) anticipated to be incurred in
each month during the following financial year.
	 
	2.	 	If the draft operating budget submitted under paragraph 1 above is approved by the Majority
Lenders (following consultation with the Independent Engineer), it will become the Operating
Budget for that financial year. The Majority Lenders shall give the Borrower reasonable
details of their reasons for rejecting any draft operating budget.
	 
	3.	 	If a draft operating budget is rejected, and the Majority Lenders (following consultation
with the Independent Engineer) and the Borrower cannot agree on an Operating Budget by the
date falling one Month prior to the start of the financial year to which such draft operating
budget applies, the matter will be referred to the Independent Engineer.
	 
	4.	 	The determination of the Independent Engineer will (save in the case of manifest error) be
final and binding on all the Parties and will be used in the relevant Operating Budget,
provided that the Independent Engineer must act reasonably in making such determination and if
requested by the Borrower must give the Borrower reasonable details of the reasons for their
determination.
	 
	5.	 	If the matter is referred to the Independent Engineer, the Operating Budget will be compiled
using items in the previous Operating Budget until such time as the Independent Engineer has
provided a final determination provided that Capital Expenditure which must be incurred by the
Borrower in order to avoid a breach of a PSC shall be deemed to be approved and included in
the Operating Budget.

- 153 -

 

SCHEDULE 12

Existing Financial Indebtedness

In relation to the Borrower:

	1.	 	Comprehensive Credit Grant Contract (Reference No. 200501045) dated 9 July 2005 by and
between the Borrower and LCCU;
	 
	2.	 	Loan Agreement (Reference No. 2006364) dated 15 November 2006 by and between the Borrower and
LCCU;
	 
	3.	 	Loan Agreement (Reference No. 2006379) dated 28 November 2006 by and between the Borrower and
LCCU;
	 
	4.	 	Loan Agreement (Reference No. 2007013) dated 25 January 2007 by and between the Borrower and
LCCU;
	 
	5.	 	Loan Agreement (Reference No. 2007149) dated 28 May 2007 by and between the Borrower and
LCCU;
	 
	6.	 	Loan Agreement (Reference No. 2007171) dated 13 June 2007 by and between the Borrower and
LCCU;
	 
	7.	 	Loan Agreement (Reference No. 2007172) dated 14 June 2007 by and between the Borrower and
LCCU;
	 
	8.	 	Loan Agreement (Reference No. 2007273) dated 24 October 2007 by and between the Borrower and
LCCU;
	 
	9.	 	Comprehensive Credit Grant Agreement (Reference No. 75012006281077) dated 16 June 2006 by and
between the Borrower and SPDB;
	 
	10.	 	Short-term Loan Agreement (Reference No. 75012007281331) dated 10 July 2007 by and between
the Borrower and SPDB;
	 
	11.	 	Comprehensive Credit Grant Agreement (Reference No. 75012007281331) dated 24 August 2007 by
and between the Borrower and SPDB;
	 
	12.	 	Short-term Loan Agreement (Reference No. 75012007281652) dated 6 September 2007 by and
between the Borrower and SPDB;
	 
	13.	 	Short-term Loan Agreement (Reference No. 75012007281849) dated 7 September 2007 by and
between the Borrower and SPDB;
	 
	14.	 	Short-term Loan Agreement (Reference No. 75012007281851) dated 12 September 2007 by and
between the Borrower and SPDB; and
	 
	15.	 	The First MIE Loan.

- 154 -

 

SCHEDULE 13

Conditions Subsequent

	1.	 	The Borrower shall, by the date falling 60 days after the date of this Agreement, deliver to
the Agent evidence satisfactory to the Agent that the inconsistencies between the Borrower’s
foreign exchange registration certificate and the Borrower’s business license in relation to
the duration of the Borrower’s operations have been rectified.
	 
	2.	 	The Borrower shall, by the date falling 60 days after the date of this Agreement, deliver to
the Agent evidence satisfactory to the Agent that the business scope of the Borrower, as
updated in the Borrower’s business licence pursuant to paragraph 1(e) of Schedule 2
(Conditions Precedent), is reflected in the Borrower’s foreign exchange registration
certificate, state tax registration certificate and local tax registration certificate.
	 
	3.	 	The Borrower shall procure that MIH will, as soon as reasonably practicable after Share
Exchange Closing, enter particulars of the security interests created pursuant to the First
MIH Share Charge and the Second MIH Share Charge in its register of mortgages and charges to
comply with Section 54 of the Companies Law (as amended) of the Cayman Islands.
	 
	4.	 	The Borrower shall, at Share Exchange Closing, deliver or procure to be delivered to the
Agent and the Security Trustee the documents referred to in Clause 3.1 (Deposit of
Certificates) of each of the First MIH Share Charge and the Second MIH Share Charge.
	 
	5.	 	The Borrower shall, promptly following Share Exchange Closing, deliver to the Agent and the
Security Trustee the Borrower’s Register of Members containing the annotations referred to in
Clause 3.4.1 (Annotation of Register of Members) of each of the First MIH Share Charge and
the Second MIH Share Charge.

- 155 -

 

SCHEDULE 14

Insurance

PART I

MATERIAL INSURANCES

	1.	 	ALL RISKS (INCLUDING MACHINERY BREAKDOWN) INSURANCE  — FIXED ASSETS

	 	 	 	 	 
	 	 	Minimum Cover:

	 	“All Risks” of physical loss of or damage to all real
and personal onshore property (including, but not
limited to, the buildings, structures, equipment,
spares and consumables, terminal, pipelines and
everything connected therewith) comprising the
Borrowing Base Assets or leased equipment and
machinery. Including inland transit within the
People’s Republic of China.
	 	 	 
	 	 
	 	 	Minimum Sum insured:

	 	As necessary according to the PSCs and confirmed by the Technical Bank. To include sublimit for
unscheduled properties, items under care, custody
and control that are not scheduled and unscheduled
property in transit
	 	 	 
	 	 
	 	 	Maximum Deductible:

	 	To be approved by the Agent (acting in consultation
with the Insurance Adviser). Preferably $100,000
e.e.o. but $50,000 in respect of transit coverage.
	 	 	 
	 	 
	 	 	Insured Parties:

	 	The Borrower and, if required under the PSCs,
Petrochina, GOC and the Joint Management
Committee.

	 	 	 	 	 	 	 
	 

	 	Required Extensions:
	 	(a)
	 	Cost escalation clause/additional cost of working clause;
	 
	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	strikes, riots and civil commotion and
	 
	 	 	 	 	 	 
	 

	 	 	 	(c)
	 	removal of wreck (25% of sum insured);
	 
	 	 	 	 	 	 
	 

	 	 	 	(d)
	 	additional costs of complying with public/local authority
requirements;
	 
	 	 	 	 	 	 
	 

	 	 	 	(e)
	 	automatic reinstatement of sum insured;
	 
	 	 	 	 	 	 
	 

	 	 	 	(f)
	 	interim payments clause;
	 
	 	 	 	 	 	 
	 

	 	 	 	(g)
	 	basis of settlements clause;
	 
	 	 	 	 	 	 
	 

	 	 	 	(h)
	 	capital additions clause; and

- 156 -

 

	 	 	 	 	 	 	 
	 

	 	 	 	(i)
	 	debris removal, demolition costs and
professional fees; and
	 
	 	 	 	 	 	 
	 

	 	 	 	(j)
	 	coverage for property in the course of
construction, installation or erection
	 
	 	 	 	 	 	 
	 

	 	 	 	(k)
	 	suitable multiple insured clause.

	 	 	 	 	 
	 	 	Other terms

	 	The policy must include standard industrial all risks
wording in respect of the processing assets, including
but not limited to electrical sub-station and the central
processing station.

- 157 -

 

	2.	 	OPERATOR’S EXTRA EXPENSES incl. Control of Well, Redrilling / Extra
Expenses, Seepage and Pollution, Clean-up and Contamination

	 	 	 	 	 
	 	 	Form of wordings

	 	EED  —  8/86 with suitable endorsements as per
Interest
	 	 	 
	 	 
	 	 	Minimum combined
limit

	 	$10,000,000 combined single limit, any one
occurrence.
	 	 	 
	 	 
	 	 	 

	 	But $1,000,000 e.e.o. in respect of Care, Custody
and Control.
	 	 	 
	 	 
	 	 	Maximum Deductible:

	 	All except CCC (see below):
	 	 	 
	 	 
	 	 	 

	 	As agreed by the Agent (acting in consultation with
the Insurance Adviser). Preferably combined single of
less than $500,000
	 	 	 
	 	 
	 	 	 

	 	Care, Custody and Control cover:
	 	 	 
	 	 
	 	 	 

	 	As agreed by the Agent (acting in consultation with
the Insurance Adviser). Preferably USD 50,000
e.e.o.
	 	 	 
	 	 
	 	 	Insured Parties:

	 	The Borrower and, if required under the PSCs,
CNCPC/Petrochina, GOC and the Joint Management
Committee.
	 	 	 
	 	 
	 	 	Main exclusions:

	 	As agreed by the Required Lenders (acting in
consultation with the Insurance Adviser).

	 	 	 	 	 	 	 
	 	 	Required Extensions:

	 	(a)
	 	Underground Blowout
	 
	 	 	 	 	 	 
	 

	 	 	 	(b)
	 	Care, Custody and Control
	 
	 	 	 	 	 	 
	 

	 	 	 	(c)
	 	Suitable Multiple Insured Clause (6 paragraphs only)
	 
	 	 	 	 	 	 
	 

	 	 	 	(d)
	 	Evacuation Expenses if profile of risk changes to
higher exposure

- 158 -

 

	3.	 	BUSINESS and CONTINGENT BUSINESS INTERRUPTION FOLLOWING
ALL RISKS (INCLUDING MACHINERY BREAKDOWN)

	 	 	 	 	 
	 	 	Minimum Cover:

	 	 Financial loss sustained as a result of any occurrence
covered by the All Risks policy described in item 1
above which causes interruption in the normal
commercial operations of the Borrower, including
but:

	 	 	 	 	 
	 

	 	(a)
	 	debt servicing and hedging costs (which
includes interest, principal payments,
commitment fees, agency fees, other fees and
all other amounts owed to the Secured
Parties); and
	 
	 	 	 	 
	 

	 	(b)
	 	all amounts incurred by the Borrower by way
of fixed expenses, contractual payment
obligations (as and if contemplated under the
PSCs), interest, default interest and extension
payments unless otherwise agreed by the
Agent (acting in consultation with the
Insurance Advisor),

	 	 	 	 	 
	 	 	 

	 	in each case until the Termination Date.
	 	 	 
	 	 
	 	 	Minimum Sum insured:

	 	An amount not less than the aggregate of (a) the debt
servicing costs referred to in paragraph (a) under the
heading “Minimum Cover” above, and (b) the
amounts referred to in paragraph (b) under the
heading “Minimum Cover” above provided that, in
each case, the Minimum Sum insured shall be no less
that the highest amount determined by reference to
“Minimum Cover” above in each of the three
Indemnity Periods next following the date on which
the Minimum Sum insured is determined.
	 	 	 
	 	 
	 	 	Indemnity Period:

	 	A minimum of 6 months from the date following the
date of occurrence.
	 	 	 
	 	 
	 	 	Maximum Deductible:

	 	To be approved by the Agent (acting in consultation
with the Insurance Advisor), but no more than 60
days.
	 	 	 
	 	 
	 	 	Insured Parties:

	 	The Borrower. Security Trustee (on behalf of the
Secured Parties) to be named loss payee.

	 	 	 	 	 
	Required Extensions:

	 	(a)
	 	Delay or interruption caused by a risk of a
type indemnifiable under the All Risks

- 159 -

 

	 	 	 	 	 
	 

	 	 	 	(including Machinery Breakdown) section of
the package policy which occurs in the
vicinity of the Borrowing base Assets and
which hinders or prevents access to the
Borrowing Base Assets. Including the
Increased Cost Of Working;
	 
	 	 	 	 
	 

	 	(b)
	 	payment on account / interim payment
clause, together with requested Lenders’
endorsements plus Multiple Insured Clause (6
paragraphs);
	 
	 	 	 	 
	 

	 	(c)
	 	suppliers’ and customers’ premises
extensions, if relevant and not contractually
protected through other means, including at
least the Contingent Business Interruption in
respect of the oil pipelines used but not
owned by the Company; and
	 
	 	 	 	 
	 

	 	(d)
	 	cut-through clause if insurer not rated
appropriately.

	 	 	 
	Main exclusions:

	 	Permitted to include the following exclusions and
others as may be agreed by the Agent (acting in
consultation with the Insurance Adviser):

	 	 	 	 	 
	 

	 	(a)
	 	loss caused by failure of the insured to obtain
or extend any permit, lease, licence or
purchase order commitment; and
	 
	 	 	 	 
	 

	 	(b)
	 	fines or damages for breach of contract for
late or non-completion of orders.

- 160 -

 

	4.	 	COMPREHENSIVE GENERAL LIABILITY INSURANCE

	 	 	 
	Minimum Cover:

	 	Occurrence-based insurance in respect of all sums
which any insured becomes legally liable to pay in
respect of legal and contractual liability to third
parties (including other insured parties in accordance
with the cross-liability clause) for:

	 	 	 	 	 
	 

	 	(a)
	 	death or bodily injury, or
	 
	 	 	 	 
	 

	 	(b)
	 	damage to third party property,

	 	 	 
	 

	 	arising out of the conduct of the Borrower’s business,
and professional costs (including legal defence costs)
and expenses incurred in dealing with any claim.
Using LSW 244 with 168 hour discovery period.
	 
	 	 
	Minimum limit of
liability:

	 	For any one occurrence $15,000,000.
	 
	 	 
	Maximum Deductible:

	 	Not to exceed $50,000 each claim for damage to third
party property. None for injury to / death of
individuals.
	 
	 	 
	Insured Parties:

	 	The Borrower and, if required under the PSCs,
CNCPC/Petrochina, GOC and the Joint Management
Committee.
	 
	 	 
	Geographical Limit:

	 	Worldwide.
	 
	 	 
	Jurisdiction

	 	Worldwide (excluding USA and Canada).

	 	 	 	 	 
	Required Extensions:

	 	(a)
	 	Liabilities arising from sudden, unintended and
unexpected seepage, pollution and contamination;
	 
	 	 	 	 
	 

	 	(b)
	 	Lenders’ endorsements
	 
	 	 	 	 
	 

	 	(c)
	 	a cross-liability clause
	 
	 	 	 	 
	 

	 	(d)
	 	cut-through clause if insurer not rated appropriately
	 
	 	 	 	 
	 

	 	(e)
	 	Deletion of exclusion 4a to Energy Exclusions LSW 245.

- 161 -

 

	5.	 	WORKMEN’S COMPENSATION/EMPLOYER’S LIABILITY
	 
	 	 	The Borrower must, in accordance with applicable laws and regulations:

	 	(a)	 	procure that there is in effect a policy or policies of insurance to
indemnify the legal and contractual liabilities of the Borrower and all its
sub-contractors of any tier for the accidental death or injury of any staff or
employee of the Borrower or its nominated agents, representatives or agents during
the course of his employment in connection with the Borrower’s business anywhere in
the People’s Republic of China; and
	 
	 	(b)	 	use its best endeavours to procure that there is in effect a policy or
policies of insurance to indemnify the legal and contractual liabilities of Petrochina
together with GOC and all their sub-contractors of any tier in respect of the
accidental death or injury of any staff or employee of Petrochina together with GOC
and sub-contractors of any tier or their nominated agents, representatives or agents
during the course of his employment in connection with the Borrower’s business
anywhere in the People’s Republic of China.

	6.	 	OTHER INSURANCES
	 
	 	 	Motor insurance as required by the relevant local law, and all other insurances,
potentially including aviation liability insurance, which are required to be purchased
pursuant to Clause 22.18 of this Agreement. Insurances are to be purchased in the name of
the Borrower, with the Finance Parties being named as co-insureds if the Agent so
requires, and for such sums insured as the Borrower and the Agent shall agree or, failing
that, as a prudent operator of the Borrower’s business (acting in accordance with good
insurance practices) would purchase.

- 162 -

 

Part II

INSURANCE POLICY ENDORSEMENTS

All policies relating to the Material Insurances must contain the following provisions or
endorsements:

	1.	 	In this endorsement it is agreed that:
	 
	 	 	Borrower means MI Energy Limited.
	 
	 	 	JMC means Joint Management Committee
	 
	 	 	GOC means Global Oil Corporation.
	 
	 	 	“PetroChina” means PetroChina Company Limited.
	 
	 	 	PSC means Production Sharing Contract
	 
	 	 	Termination Date means the date on which all present and future obligations of the
Borrower to the Finance Parties under the Finance Documents have been unconditionally and
irrevocably discharged in full.
	 
	 	 	Finance Parties means the banks and other institutions which are loss payees hereunder and
are involved in providing funding, financing, financial accommodation and / or hedging
facilities to the Borrower. The phrase includes any agent and/or trustee, assignee,
transferee, successor or novated, replacement or additional creditor of or in relation to
any of the foregoing.
	 
	 	 	Insureds means, severally, the insureds named in this insurance policy.
	 
	 	 	Agent means Standard Merchant Bank (Asia) Ltd, Singapore Branch acting in that capacity for
the Finance Parties and includes its successors from time to time in that capacity.
	 
	 	 	Security Agent means Standard Merchant Bank (Asia) Ltd, Singapore Branch acting in that
capacity for the Secured Parties and includes its successors from time to time in that
capacity.
	 
	 	 	Material Insurances means:

	 	(a)	 	property all risks (including machinery breakdown) insurance — fixed assets
	 
	 	(b)	 	Operator’s Extra Expense (O.E.E.)
	 
	 	(c)	 	Comprehensive General Liability Insurance
	 
	 	(d)	 	business interruption and contingent business interruption insurance
following all risks

- 163 -

 

	 	 	Comprehensive General Liability Insurance means insurance in respect of all
sums which any Insured becomes liable to pay in respect of legal liability to third
parties.
	 
	2.	 	[The Insurers acknowledge that they have been notified that the Borrower has assigned by way
of first ranking security to the Finance Parties all its rights title and interest in this
insurance (or reinsurance as applicable) and in the subject matter of this insurance (or
reinsurance as applicable), and confirm that other than the notification under the security
referred to in paragraph 3 below, they have not been notified of any other assignment of or
security interest in the Borrower’s interest in this insurance (or reinsurance as applicable).
	 
	3.	 	The Insurers acknowledge that the Finance Parties and their respective officers, directors,
employees, agents and assigns are each loss payees under this policy. The Insurers waive all
rights of contribution against any other insurance (or reinsurance as applicable) effected by
the Finance Parties or their directors, officers, employees, agents or assigns.]3
	 
	4.	 	The Insurers acknowledge receipt of consideration for their insurance (or reinsurance as
applicable) hereunder and waive any claim that they might otherwise have against such party
in respect of any premium payable in respect of this insurance (or reinsurance as
applicable).
	 
	5.	 	The Insurers acknowledge that the Insurance is primary to and not excess to (except in
respect of layers of third party cover effected specifically for the Borrower) or
contributing with any other insurance (or reinsurance as applicable) maintained by any
Insured. The Insurers waive all rights of contribution against any other insurances (or
reinsurances as applicable) effected by the Insured.
	 
	6.	 	The Insurers waive any claim for average or contribution in respect of any other insurance
(or reinsurance as applicable) of the insured risks or any other insurance (or reinsurance as
applicable) effected by the Finance Parties or their directors, officers or employees.
	 
	7.	 	The Insurers agree that each of the Insureds shall, for the purpose of this policy, be
treated as an individually and separately insured (or re-insured as applicable) party to the
insurance (or reinsurance as applicable) contract, and each shall be separately insured from
any other insured person in respect of its own insurable rights and interest, provided that
the total liability of the Insurers under each Part of this policy to the Insured collectively
shall not (unless the policy specifically permits otherwise) exceed the Limit of Indemnity
stated to be insured thereby. The liability of the Insurers under this policy to any one
Insured shall not be conditional upon the due observance and fulfilment by any other insured
(or re-insured as applicable) party of the terms and conditions of this policy or of any
contractual, pre-contractual or non-contractual duties imposed by law or contract upon that
insured party relating thereto, and shall not be affected by any failure in such observance or
fulfilment by any such

 

			
	3	 	To be included in endorsements relating to business interruption insurance only.

- 164 -

 

	 	 	other insured party. Without prejudice to the protections afforded to the Insured
by this endorsement, no one Insured represents or warrants the adequacy or accuracy of any
information provided or representation made by or on behalf of any other Insured.
	 
	8.	 	The Insurer hereby agrees to waive all rights of subrogation which it may have or acquire
against any of the parties comprising the Insureds, their affiliates, their consultants,
officers, directors and employees, and other parties to the extent required by contract.
	 
	9.	 	The Insurers acknowledge, for the benefit of the Insureds, that:

	 	(a)	 	they have received adequate information in order to evaluate the risk of
insuring (or re-insuring) the Borrower in respect of the risks hereby insured on the
assumption that such information is not materially misleading;
	 
	 	(b)	 	there is no information which has been relied on or is required by Insurers
in respect of their decision to make the Finance Parties or their directors,
officers, employees or agents loss payees;
	 
	 	(c)	 	no person has been authorised to make any representation on behalf of any of
the Finance Parties or their directors, offices, employees or agents in relation to
their becoming or being loss payees under this policy;
	 
	 	(d)	 	no Insured will be penalised or prejudiced in any way nor shall any of this
policy be rendered void by any non-disclosure of any information the disclosure of
which is prohibited or restricted by the laws, regulations, decrees or policies of
the People’s Republic of China or any provincial, municipal or local government or
any department, agency or bureau thereof or judicial body of the People’s Republic of
China having jurisdiction over the Borrower or any part of its business; and
	 
	 	(e)	 	the Finance Parties shall have no duty of disclosure except in relation to
information made available to them by any other Insured relating to the Borrower or
any part of its business, provided such information is not confidential.

	10.	 	If an Insured shall provide or suppress any information or make any claim knowing
the same to be false or fraudulent as regards amount or otherwise, the benefit to him
of insurance (or re-insurance as applicable) under this policy shall become void and
all his claims hereunder shall be forfeited.

	 	 	 	The rights and indemnity of any Insured who is not guilty of any fraud,
misrepresentation, non-disclosure or breach of condition shall not be prejudiced
or affected by any fraud, misrepresentation, non-disclosure, breach of warranty or
breach of condition by any other parties comprising the Insured.

- 165 -

 

	 	 	 	In any situation where it may be alleged that there has been a failure by
any Insured to advise material alterations or that there has been non-disclosure or
misrepresentation of information originally supplied, the Insurer shall not
exercise any rights to avoid the Policy as against the Insurer if such failure,
non-disclosure or misrepresentation was innocent and free of any fraudulent conduct
or intent to deceive, and provided the same shall be advised to the Insurer as soon
as it shall become known and any reasonable retrospective amendment of premium
and/or terms accepted by the Insured.
	 
	 	 	 	For the purposes of the indemnity granted by this policy claims made by any of the
parties defined as the Insured against any other party so described shall be
treated as though the party claiming was not named as the Insured in this policy,
provided always that nothing herein shall increase the limit of liability under
this policy.

	11.	 	[The Insurers shall not be entitled to offset any sums payable to the Finance Parties
against premium or other moneys owing by the Borrower, nor any sums owing to the
Borrower under this policy against any moneys owing by the Borrower under any
other policy or contract.]4

	12.	 	(a)     The Insurers’ right to repudiate, avoid, rescind or terminate this contract or to
treat the contact as terminated or suspended or to deny any otherwise valid claim
shall be limited to those circumstances in which the contract expressly so
provides, and each Insurer waives any right that it would otherwise have to do so
in any other circumstances on any ground.

	 	(b)	 	Except in respect of any fraud on the part of an Insured, the Insurer
waives any right that it may have at law to claim damages against any person.

	13.	 	Currency Conversion Clause:
	 
	 	 	This clause applies in circumstances where an Insured has suffered a loss in a currency
other than dollars. An Insured suffers a loss in the currency or currencies in which that
Insured has actually incurred (or, failing that, has booked) the loss, liability or
expense for which it is claiming under this policy. In such circumstances the Insured is
entitled to indemnity or reimbursement for his loss under this policy, subject to any
applicable limit specified in the policy, by applying the Relevant Rate of Exchange as at
the Relevant Date.
	 
	 	 	The Relevant Rate of Exchange is rate determined by the Agent for this purpose by reference
to its spot rate of exchange in London for the purchase of the currency in which the loss
has been suffered by the Insured with dollars at or about 11.00 am on the Relevant Date or,
if no such spot rate exists on the Relevant Date, by such other method as the Agent (in
consultation with the Borrower) reasonably determines.
	 
	 	 	The Relevant Date is:

- 166 -

 

	 	(a)	 	in the case of loss or damage to property, the date or dates on which the
claimant Insured becomes obliged to pay for its repair, reinstatement or replacement
or (if earlier) the date on which the Insurers settle the claim of the Insured;
	 
	 	(b)	 	in the case of a liability (or cross-liability) to a third party, the date
on which the claimant Insured becomes obliged to discharge that liability;
	 
	 	(c)	 	in the case of a claim for business or contingent business interruption, the
last date of the period of interruption to which the claim relates; and
	 
	 	(d)	 	in any other case, the date on which the claim is first presented as a
quantified claim to the Insurers by the Insured.

	 	 	The amount which the Insured is entitled to be indemnified or reimbursed pursuant to this
clause is called the Insured Loss.
	 
	14.	 	For the benefit of the Secured Parties (until the Termination Date), the insured parties
irrevocably authorise and instruct the Insurer to pay, and the Insurer agrees to pay, all
claims, returned premiums and any other moneys payable to any of them until the Termination
Date under or in relation to this contract (Insurance Proceeds) as follows:

	 	(a)	 	if the sum recoverable is in respect of third party claims to be paid
directly to a third party under the Comprehensive General Liability Insurance, such
sums shall be paid directly to that third party;
	 
	 	(b)	 	if the sum recoverable is in respect of Business and Contingent Business
Interruption Insurance sums shall be paid directly to the Security Trustee;
	 
	 	(c)	 	to the extent that sub-paragraph (a) or (b) above does not apply or payments
have not been made to the third party or named insured (as the case may be) as
contemplated therein, to one the following bank accounts of the Borrower in
accordance with the instructions of the Agent:

	 	 	 	 	 	 	 
	 

	 	Offshore Collection Account:

	 	 	 	 	 	 	 
	 

	 	Bank name:
	 	Standard Bank Plc

	 
	 	 	 	 	 	 
	 

	 	Account name:
	 	MI Energy Corp USD Collection Acc

	 
	 	 	 	 	 	 
	 

	 	Account number:
	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Daan USD:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Bank Name:
	 	China CITIC Bank, Beijing Anzhen Branch

	 
	 	 	 	 	 	 
	 

	 	Account Name:
	 	MI (only Chinese translation of ‘MI
Energy Corporation’, but not MIE (China))

 

			
	4	 	To be included in endorsements relating to business interruption insurance only.

- 167 -

 

	 	 	 	 	 	 	 
	 

	 	Account number:
	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Daan RMB:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Bank Name:
	 	China CITIC Bank, Beijing Anzhen Branch

	 
	 	 	 	 	 	 
	 

	 	Account Name:
	 	MI (only Chinese translation of ‘MI
Energy Corporation’, but not MIE (China))

	 
	 	 	 	 	 	 
	 

	 	Account number:
	 		 
	 
	 	 	 	 	 	 
	 

	 	Moliqing USD:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Bank Name:
	 	Industrial Bank, Beijing Yayuncun Branch

	 
	 	 	 	 	 	 
	 

	 	Account Name:
	 	MI (only Chinese translation of aMI
Energy Corporation’, but not MIE (China))

	 
	 	 	 	 	 	 
	 

	 	Account number:
	 		 
	 
	 	 	 	 	 	 
	 

	 	Moliqing RMB:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Bank Name:
	 	Agriculture Bank of China, Songyuan Branch

	 
	 	 	 	 	 	 
	 

	 	Account Name:
	 	MI (only Chinese translation of ‘MI
Energy Corporation’, but not MIE (China))

	 
	 	 	 	 	 	 
	 

	 	Account number:
	 		 
	 
	 	 	 	 	 
	 

	 	Miao3 USD:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Bank Name:
	 	Shenzhen Development Bank, Beijing Branch

	 
	 	 	 	 	 	 
	 

	 	Account Name:
	 	MI (only Chinese translation of ‘MI
Energy Corporation’, but not MIE (China))

	 
	 	 	 	 	 	 
	 

	 	Account number:
	 		 
	 
	 	 	 	 	 	 
	 

	 	Miao3 RMB:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Bank Name:
	 	Agriculture Bank of China, Songyuan Branch

	 
	 	 	 	 	 	 
	 

	 	Account Name:
	 	MI (only Chinese translation of ‘MI
Energy Corporation’, but not MIE (China))

	 
	 	 	 	 	 	 
	 

	 	Account number:
	 		 
	 
	 	 	 	 	 	 
	 	 	provided that all such payments shall be made by the Insurer without any deduction or set-off on
any account or of any kind. Any monies received by the Insurer from any facultative re-insurers of
the risks insured under this policy shall be received and held by the Insurer in trust for the
relevant claimant Insured. A payment to the loss payee

- 168 -

 

	 	 	 	in accordance with this paragraph shall, to the extent of that
payment, discharge the liability of the Insurer to pay the Borrower or
other claimant insured. Each payment by the Insurer to a third party of a
claim against the Borrower under a Comprehensive General Liability
Insurance insured (or re-insured as applicable) by the Insurer shall be
applied directly to discharge fully and finally an insured liability of
the Borrower to that third party. The arrangements in this clause shall
continue to apply notwithstanding the liquidation or insolvency of the
Borrower or the Insurer.

	15.	 	Each Insurer severally agrees that neither the sums insured (or re-insured as applicable)
nor the risks covered under this policy and any renewal of it by that Insurer will be reduced
or amended in any way, and that no deductible, excess or retention will be increased, without
the prior written agreement of the Agent.
	 
	15.	 	The Insurers shall give to the Agent:

	 	(a)	 	at least 45 days’ notice in writing if any Insurer intends to cancel or
suspend this insurance (or reinsurance as applicable) or any cover under this
insurance (or reinsurance as applicable) for any reason;
	 
	 	(b)	 	at least 45 days’ notice in writing before avoiding for non payment of any
outstanding premium in order to give an opportunity for that premium to be paid within
the notice period;
	 
	 	(c)	 	at least 45 days’ notice in writing before any reduction in limits or
coverage, any increase in deductibles or any termination before the original expiry
date is to take effect;
	 
	 	(d)	 	notice as soon as is reasonably practicable and in any event within ten days of
any such act, omission or event of any act or omission or of any event of which the
Insurer has knowledge and which the Insurer considers may invalidate or render
unenforceable in whole or in part this insurance (or reinsurance as applicable) or any
claim under it which might entitle the Insurer to terminate rescind or repudiate this
policy in whole or in part, or treat it as avoided, terminated or suspended against any
insured (or re-insured) party;
	 
	 	(e)	 	at least 45 days’ notice in writing if they have not agreed to renew this
Insurance at its next expiry date (or have been invited to do so);
	 
	 	(f)	 	notice promptly (and in any event, within five days) if the Borrower has not
renewed this policy on or at least 45 days before its expiry date; and
	 
	 	(g)	 	at least 45 days’ notice in writing (or such lesser period as may be specified
from time to time in respect of war and kindred perils) prior to any action or event
which might make the policy void or voidable to the extent it is aware of the same.

- 169 -

 

	 	 	 	The policy will not be cancelled or the coverage so altered or
affected before the expiry of the notice periods referred to above.

	17.	 	None of the Secured Parties is liable for the payment of any premium under this policy, but
this does not relieve the Borrower from its obligations to pay any premium due under this
policy.
	 
	18.	 	Neither the Security Trustee nor the Agent is an agent or trustee of any party other than
the Secured Parties or, as the case may be, the Finance Parties for receipt of any notice or
any other purpose in relation to this insurance (or reinsurance as applicable).
	 
	19.	 	All notices or other communications under or in connection with this policy will be given in
writing or by fax. Any such notice will be deemed to be given as follows:

	 	(a)	 	if in writing, when delivered; and
	 
	 	(b)	 	if by fax, on the date on which it is transmitted but only if (i)
immediately after the transmission, the sender’s fax machine records the correct
answerback (ii) the transmission date is a normal business day in the country of the
recipient at the time of transmission and is recorded as received before 5pm on that
date in the recipient’s time zone, failing which it shall be deemed to be given on
the next normal business day in the recipient’s country.
	 
	 	 	 	The address and fax number of the Security Trustee for all notices under or in
connection with this policy are those notified from time to time by the Agent for
this purpose to the Insurer. The initial address and fax number of the Security
Trustee are as follows:

	 	 	 
	The Security Trustee:

	 	Standard Bank Asia Limited
	 
	 	 
	Address:

	 	36th Floor, Two Pacific Place, 88

Queensway, Hong Kong
	 
	 	 
	Fax No:

	 	(852) 2822 7999
	 
	 	 
	Attention:

	 	Head of Loans Administration

	20.	 	No rights are conferred under the Contracts (Rights of Third Parties) Act 1999 on any person
other than an insured (or re-insured) party under this policy and the Finance Parties to
enforce any term of this contract.
	 
	21.	 	Notwithstanding any other provision of this contract, this contract shall be governed and
interpreted in accordance with PRC law. Each Insurer submits irrevocably to the jurisdiction
of the PRC courts for the determination of any and all issues arising out of or in connection
with this contract (including its validity and enforceability). Without prejudice to any other
mode of service, each Insurer:

	 	(a)	 	agrees to maintain an agent for service of process in PRC for so long as any
obligation under this contract is outstanding and to keep the Borrower and the Agent
informed as to the identity of that agent;

- 170 -

 

	 	(b)	 	agrees that failure by a process agent to notify it of the service of any
process will not invalidate the proceedings concerned;
	 
	 	(c)	 	agrees that if the appointment of any person mentioned paragraph (a) above
ceases to be effective, it shall immediately appoint a further person in PRC to
accept service of process on its behalf there and, failing such appointment within
15 days, the Security Trustee is entitled to appoint such person by notice to the
relevant Insurer.

	22.	 	Each Insurer agrees that, in the event of damage to the insured property there shall be no
obligation on the Insured to reinstate or replace such property. If such property is not
reinstated or replaced the Insured shall nevertheless be entitled to receive as indemnity the
amounts payable calculated in accordance with this policy as if such reinstatement or
replacement had been effected.
	 
	23.	 	Each Insurer agrees:

	 	(a)	 	that each provision of this endorsement as applicable to it is reasonable;
	 
	 	(b)	 	not to contest the enforceability of any such provision in any proceeding
arising out of or in connection with this contract or its purported repudiation,
avoidance or termination;
	 
	 	(c)	 	not to rely on any finding that any wider duty (including any pre-contractual
or other non-contractual duty) was owed to Insurers than is expressed in this contract
to be owed and that any such duty owed was breached (whether by any Insured or any
agent of an Insured or any other person) to decline any claim or to repudiate, avoid
or terminate this contract even such breach of duty was negligent;
	 
	 	(d)	 	that each such provision is severable from every other provision of this
contract and is intended by it to be valid, binding and enforceable in accordance
with its terms notwithstanding any purported repudiation, avoidance or termination;
and
	 
	 	(e)	 	that the provisions of this specifically negotiated endorsement override any
inconsistent or incompatible provision elsewhere in the contract.

	23.	 	This provisions of this endorsement may only be amended by written agreement between duly
authorised representatives of the parties, such amendment to be endorsed on the contract
policy.
	 
	24.	 	This endorsement overrides any conflicting provision in any policy to which it applies.

- 171 -

 

SIGNATURES

	 	 	 	 	 	 	 	 	 
	THE BORROWER
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EXECUTED AS A DEED by MI	 	) 	 	(SIGNED)
	 	 
	 	 	 	 	 	 	 
	ENERGY CORPORATION:	 	) 	 	Duly Authorised Signatory
	 	 
	 

	 	) 	 	 	 	 	 	 
	 

	 	) 
	 	Name:
	 	FORREST DIETRICH
	 	 
	 

	 	) 	 	 	 	 	 	 
	 

	 	) 
	 	Title:
	 	CEO	 	 
	 

	 	) 	 	 	 	 	 	 

In the presence of:

	 	 	 	 	 
	(SIGNED)
	 	 
	 	 	 
	Signature of witness
	 	 
	 
	 	 	 	 
	Name:

	 	B.M. GARLICK
	 	 
	 
	 	 	 	 
	Address:

	 	SUITE 406 BLOCK C	 	 
	 

	 	GRAND PLACE 5 HUI ZHONG ROAD	 	 
	 

	 	CHAOYANG DISTRICT BEIJING	 	 
	 
	 	 	 	 
	Occupation:

	 	SENIOR FINANCIAL ADVISOR	 	 
	 
	 	 	 	 
	(Note: These details are to be completed in
the witness’s own handwriting.)	 	 
	 
	 	 	 	 
	Address:

	 	Suite 406, Block C	 	 
	 

	 	Grand Palace	 	 
	 

	 	5 Hui Zhong Road	 	 
	 

	 	Chaoyang District	 	 
	 

	 	Beijing 100101	 	 
	 

	 	Peoples Republic of China	 	 
	 
	 	 	 	 
	Attention:

	 	Mr. Forrest Dietrich	 	 
	Facsimile:

	 	+ 86 10 51238866	 	 

 

 

	 	 	 	 	 
	THE ARRANGER
	 
	 	 	 	 
	STANDARD BANK ASIA LIMITED
	 
	 	 	 	 
	By:

	 	(SIGNED)
	 	(SIGNED)
	 
	 	 	 	 
	Name:

	 	JOHN WIXLEY
	 	FRANCINE NG
	Title:

	 	ATTORNEY
	 	ATTORNEY
	 
	 	 	 	 
	Address:	 	36th Floor, Two Pacific Place
	 	 	88 Queensway
	 	 	Hong Kong
	 
	 	 	 	 
	Attention:	 	Head of Loans Administration
	Facsimile:	 	+852 2822 7999

	 
	 	 	 	 
	THE AGENT
	 
	 	 	 	 
	STANDARD BANK ASIA LIMITED
	 
	 	 	 	 
	By:

	 	(SIGNED)
	 	(SIGNED)
	 
	Name:

	 	JOHN WIXLEY
	 	FRANCINE NG
	Title:

	 	ATTORNEY
	 	ATTORNEY
	 
	 	 	 	 
	Address:	 	36th Floor, Two Pacific Place
	 	 	88 Queensway
	 	 	Hong Kong
	 
	 	 	 	 
	Attention:	 	Head of Loans Administration
	Facsimile:	 	+852 2822 7999

 

 

	 	 	 	 	 
	THE SECURITY TRUSTEE
	 
	 	 	 	 
	STANDARD BANK ASIA LIMITED
	 
	 	 	 	 
	By:

	 	(SIGNED)
	 	(SIGNED)
	 
	 	 	 	 
	Name:

	 	JOHN WIXLEY
	 	FRANCINE NG
	Title:

	 	ATTORNEY
	 	ATTORNEY
	 
	 	 	 	 
	Address:	 	36th Floor, Two Pacific Place
	 	 	88 Queensway
	 	 	Hong Kong
	 
	 	 	 	 
	Attention:	 	Head of Loans Administration
	Facsimile:	 	+ 852 2822 7999

	 
	 	 	 	 
	THE TECHNICAL BANK
	 
	 	 	 	 
	STANDARD BANK ASIA LIMITED
	 
	 	 	 	 
	By:

	 	(SIGNED)
	 	(SIGNED)
	 
	 	 	 	 
	Name:

	 	JOHN WIXLEY
	 	FRANCINE NG
	Title:

	 	ATTORNEY
	 	ATTORNEY
	 
	 	 	 	 
	Address:	 	36th Floor, Two Pacific Place
	 	 	88 Queensway
	 	 	Hong Kong
	 
	 	 	 	 
	Attention:	 	Head of Loans Administration
	Facsimile:	 	+ 852 2822 7999

 

 

	 	 	 	 	 
	THE OFFSHORE ACCOUNT BANK
	 
	 	 	 	 
	STANDARD BANK PLC
	 
	 	 	 	 
	By:

	 	(SIGNED)
	 	(SIGNED)
	 
	 	 	 	 
	Name:

	 	JOHN WIXLEY
	 	FRANCINE NG
	Title:

	 	ATTORNEY
	 	ATTORNEY
	 
	 	 	 	 
	Address:	 	Cannon Bridge House
	 	 	25 Dowgate Hill
	 	 	London EC4R 2SB
	 
	 	 	 	 
	Attention:	 	Head of Loans Administration
	Facsimile:	 	+ 852 2822 7999

	 
	 	 	 	 
	THE LENDERS
	 
	 	 	 	 
	STANDARD BANK PLC
	 
	 	 	 	 
	By:

	 	(SIGNED)
	 	(SIGNED)
	 
	 	 	 	 
	Name:

	 	JOHN WIXLEY
	 	FRANCINE NG
	Title:

	 	ATTORNEY
	 	ATTORNEY
	 
	 	 	 	 
	THE HEDGE COUNTERPARTIES
	 
	 	 	 	 
	STANDARD BANK PLC
	 
	 	 	 	 
	By:

	 	(SIGNED)
	 	(SIGNED)
	 
	 	 	 	 
	Name:

	 	JOHN WIXLEY
	 	FRANCINE NG
	Title:

	 	ATTORNEY
	 	ATTORNEYEX-10.24

Exhibit 10.24

 

 

EXECUTION VERSION

Dated This 24th day of June 2009

By and Among

Standard Bank Plc,

Zhang Ruilin,

Zhao Jiangwei,

Shang Zhiguo

MI Energy Corporation

MIE Holdings Corporation

AND 

Far East Energy Limited

 

AMENDMENT TO

SHARES PURCHASE AGREEMENT

relating to the purchase of 197,049 Ordinary Shares

of

MIE HOLDINGS CORPORATION

 

 

 

THIS AMENDMENT TO SHARES PURCHASE
AGREEMENT (this “Amendment”) is made on the 24th
day of June 2009 by and among:

	(1)	 	STANDARD BANK PLC, a financial institution incorporated in England, and/or one
or more of its Affiliates
(collectively, “Standard Bank”);
	 
	(2)	 	FAR EAST ENERGY LIMITED, a company incorporated in the Hong Kong
Special Administrative Region of the People’s Republic of China (“FEEL”);
	 
	(3)	 	ZHANG RUILIN, an individual whose passport number
is G18206054 (“Zhang”);
	 
	(4)	 	ZHAO JIANGWEI, an individual whose passport number is
G11875117 (“Zhao”);
	 
	(5)	 	SHANG ZHIGUO, an individual whose passport number is G18197033 (“Shang”) and
together with Zhang and Zhao, the “FEEL Shareholders”);
	 
	(6)	 	MI ENERGY CORPORATION, an exempted company incorporated with limited
liability in the Cayman Islands (the “MIE”) and
	 
	(7)	 	MIE HOLDINGS CORPORATION, an exempted company incorporated with
limited liability in the Cayman Island (the “Company”).

WHEREAS, Standard Bank,
FEEL and the FEEL Shareholders entered into the Shares Purchase Agreement
dated January 12, 2009 (the “Original Agreement”) pursuant to which Standard Bank
purchased 197,049 Ordinary Shares on the terms and subject to the conditions contained in the
Original Agreement; and

WHEREAS, Standard Bank, FEEL,
the FEEL Shareholders, MIE and the Company now wish to amend the
Agreement on the terms and subject to conditions set forth herein.

NOW THEREFORE, in consideration
of the premises hereinafter contained, and upon the terms and
subject to the conditions stated herein, the Parties agree as follows:

	1.	 	DEFINITIONS AND INTERPRETATION

Unless defined in this Amendment or the context otherwise requires, words and expressions defined
in the Original Agreement shall have the same meanings in this Amendment.

	2.	 	AMENDMENTS TO ORIGINAL AGREEMENT

With effect from the Effective Date (as defined below), the Original Agreement shall be amended as
set out in Schedule 1 hereto and all references in the Original Agreement to “this Agreement”,
“herein”, “hereof, “hereunder”, and words of like import shall be construed as references to the
Original Agreement as amended by this Amendment and as otherwise from time to time amended,
supplemented, restated, novated or replaced.

	3.	 	EFFECTIVE DATE

	3.1	 	Effective Date. The Original Agreement as amended by this Amendment shall be
effective on the date (the “Effective Date”) of the Completion as such term is defined

1

 

	 	 	in the Series A Preferred Shares Subscription and Put Option Agreement dated as of June 19,
2009 by and among TPG Star Energy Ltd., Far East Energy Limited, MIE Holdings Corporation
and MI Energy Corporation (the “TPG SPA”).

	3.2	 	Conditions Precedent to Effectiveness. The effectiveness of the Original Agreement
as amended by this Amendment is conditioned upon the fulfillment of the following conditions:

	 	(a)	 	Completion shall have occurred under the TPG SPA;
	 
	 	(b)	 	each Party shall have performed and complied with all covenants, agreements
and undertakings contained in this Amendment that are required to be
performed or complied with by that Party on or before the Effective Date;
	 
	 	(c)	 	FEEL shall have delivered to Standard Bank certified true copies of the
resolutions of the board of directors of FEEL approving the terms of this
Amendment and the Amended Option Agreement;
	 
	 	(d)	 	the Company shall have delivered to Standard Bank certified true copies of
the resolutions of the board of directors of the Company approving the terms of
this Amendment, the Amended Option Agreement and the Amended and
Restated Memorandum and Articles (the “Restated Articles”) a copy of which
is attached hereto as Exhibit A) of the Company;
	 
	 	(e)	 	MIE shall have delivered to Standard Bank certified true copies of the
resolutions of the board of directors of MIE approving the terms of this
Amendment and the Amended Option Agreement;
	 
	 	(f)	 	each of FEEL and Standard Bank shall have executed and delivered to the
other party an amendment and restatement of the Option Agreement dated as
of January 9, 2009 by and between FEEL and Standard Bank (the “Amended
Option Agreement”) in the form attached hereto as Exhibit B;
	 
	 	(g)	 	Standard Bank shall have executed and delivered to each of FEEL, TPG, MIE
and the Company a shareholders agreement by and among TPG, Standard
Bank, FEEL, MIE and the Company in the form attached hereto as Exhibit C;
and
	 
	 	(h)	 	the FEEL Shareholders shall have executed and delivered to Standard
Bank an undertakings letter in the form attached hereto as Exhibit D.

	4.	 	RATIFICATION OF ORIGINAL AGREEMENT

The Original Agreement as amended by this Amendment is hereby ratified and confirmed.

	5.	 	GOVERNING LAW

This Amendment shall be governed by and construed in accordance with English law.

	6.	 	COUNTERPARTS

2

 

This Amendment may be signed in any number of counterparts, each of which is an original and all of
which, taken together, constitute one and the same instrument. This Amendment may also be executed
and delivered by facsimile signature and in any number of counterparts, each of which shall be
deemed an original and all of which, taken together, constitute one and the same instruments.

[Signature page follows]

3

 

IN WITNESS WHEREOF this Amendment has been duly executed as of the date and year first written
above.

	 	 	 	 	 	 
	STANDARD BANK PLC

 	 	 	 
	By:  	/s/ 	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

 

	 	 	 	 	 
	FAR EAST ENERGY LIMITED

 	 	 
	By:  	/s/ Zhang Ruilin
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	MIE HOLDINGS CORPORATION

 	 	 
	By:  	/s/ Zhang Ruilin
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	MI ENERGY CORPORATION

 	 	 
	By:  	/s/ Zhang Ruilin
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	 	 
	/s/ Zhang Ruilin
 	 	 
	ZHANG RUILIN 	 	 
	 	 	 
	 
	 	 	 
	/s/ Zhao Jiangwei
 	 	 
	ZHAO JIANGWEI 	 	 
	 	 	 
	 
	 	 	 
	
 	 	 
	SHANG ZHIGUO 	 	 
	 	 	 
	 

 

 

	 	 	 	 	 
	FAR EAST ENERGY LIMITED

 	 	 
	By:  	
 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	MIE HOLDINGS CORPORATION

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	MI ENERGY CORPORATION

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	 	 	 
	 	 	 
	ZHANG RUILIN 	 	 
	 	 	 
	 
	 	 	 
	 	 	 
	ZHAO JIANGWEI 	 	 
	 	 	 
	 
	 	 	 
	/s/ Shang Zhiguo
 	 	 
	SHANG ZHIGUO 	 	 
	 	 	 

 

 

	 	 	 	 	 

Schedule 1

	1.	 	The Preamble of the Original Agreement shall be amended as follows:
	 
	 	 	THIS SHARES PURCHASE AGREEMENT (this “Agreement”) is made on the 12th
day of January 2009 by and among;

	 	(1)	 	STANDARD BANK PLC, a financial institution incorporated in England,
and/or one or more of its Affiliates (collectively, “Standard Bank”):
	 
	 	(2)	 	FAR EAST ENERGY LIMITED, a company incorporated in the Hong
Kong Special Administrative Region of the People’s Republic of China
(“FEEL”);
	 
	 	(3)	 	ZHANG RUILIN, an individual whose passport number is G18206054
(“Zhang”);
	 
	 	(4)	 	ZHAO JIANGWEI, an individual whose passport number is Gl1875117
(“Zhao”);
	 
	 	(5)	 	SHANG ZHIGUO, an individual whose passport number is G18197033
(“Shane” and together with Zhang and Zhao, the “FEEL Shareholders”);
	 
	 	(6)	 	MI ENERGY CORPORATION, an exempted company incorporated with
limited liability in the Cayman Island (the “MIE”); and
	 
	 	(7)	 	MIE HOLDINGS CORPORATION, an exempted company incorporated
with limited liability in the Cayman Island (the “Company”).

	 	 	(Standard Bank, FEEL, the FEEL Shareholders, MIE and the Company are hereinafter referred
to collectively as the “Parties” and
individually as a “Party”).
	 
	2.	 	The definition of “MIE” in Clause 1.1 shall be deleted in its entirety and replaced with
the following:
	 
	 	 	““MIE” shall have the meaning set forth in the Preamble.”
	 
	3.	 	The definition of “Company” in Clause 1.1 shall be deleted in its entirety and replaced
with the following:
	 
	 	 	“Company” shall have the meaning set forth in the Preamble.”
	 
	4.	 	A new definition of “Allocable Indemnity Payment” shall be inserted in Clause 1.1
immediately after the definition of “Affiliate” as follows:
	 
	 	 	“Allocable Indemnity Payment” means, in respect of any Put Share, an amount equal to (i)
the aggregate indemnity payments made by the Warrantors to Standard Bank under this
Agreement which have resulted in a reduction in the purchase price of the Put Shares in
accordance with International Financial Reporting Standards divided by

6

 

	 	 	(ii) the total number of Put Shares held by Standard Bank.”

	5.	 	The definition of “Compliance with Financing Agreements” in Clause 1.1 shall be
deleted in its entirety and replaced with the following:
	 
	 	 	““Compliance with Financing Agreements” shall have the meaning set forth in Clause 5A.1(c).”
	 
	6.	 	A new definition of “Conversion Notice” shall be inserted in Clause 1.1 immediately
after the definition of “Consent” in Clause 1.1 as follows:
	 
	 	 	““Conversion Notice” shall have the meaning set forth in Clause 5.6(a).”
	 
	7.	 	A new definition of “Early Put Option Trigger Event” shall be inserted in Clause 1.1
immediately after the definition of “Conversion Notice” as follows:
	 
	 	 	““Early Put Option Trigger Event means any of the following events or circumstances:

	 	 	 	(a) the FEEL Shareholders do not comply with any provision in Clause [2]
of the FEEL Shareholders Undertakings;
	 
	 	 	 	(b) FEEL does not comply with any provision in Clause 13.3 of the
Shareholders’ Agreement;
	 
	 	 	 	(c) FEEL or the Company does not comply with any provision in Clause
13.4 of the Shareholders’ Agreement; or
	 
	 	 	 	(d) any of FEEL, the Company or MIE commences a voluntary case under
any applicable bankruptcy, insolvency, reorganization, rehabilitation,
compulsory composition or other similar law now or hereafter in effect, or
consents to the entry of an order for relief in an involuntary case under any
such law, or consents to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of any
of them or for any substantial part of its property, or ceases to carry on the
whole or substantially the whole of its business or makes any general
assignment for the benefit of creditors, or enters into any composition with its
creditors, or takes corporate action in furtherance of any such action.”

	8.	 	The definition of “Election Notice” in Clause 1.1 shall be deleted in its entirety and
replaced with the following:
	 
	 	 	“Election Notice” shall have the meaning set forth in Clause 5A. l(b).”
	 
	9.	 	A new definition of “Fair Value” shall be inserted in Clause 1.1 immediately after the
definition of “Encumbrance” as follows:
	 
	 	 	“Fair Value” means the fair value of any Put Share as of the date of the Put Exercise Notice,
as agreed between Standard Bank and FEEL, or in the absence of any such agreement within
15 days of the date of the Put Exercise Notice, as determined (based on the assumption
that the Put Shares (or the Series A Preferred Shares), on an as-

7

 

	 	 	converted basis, have the same per-share value as fully paid up Ordinary Shares, and that
the Company is a going concern and attributing no discount for the fact that the Put Shares
represent a minority interest) by an independent international evaluator (who shall make
such determination within 30 days after the date of selection, and whose decision, in the
absence of manifest error, shall be final and binding on Standard Bank and FEEL), mutually
agreed between Standard Bank and FEEL (or in the absence of such agreement, selected by
Standard Bank from three (3) independent international evaluators nominated by FEEL), with
significant experience in valuation of international oil and gas businesses and shall take
into account equity market comparables at the time on Recognised Stock Exchanges.”

	10.	 	A new definition of “FEEL Shareholders Undertakings” shall be inserted in Clause
1.1 immediately after the definition of “FEEL Shareholders” as follows:
	 
	 	 	““FEEL Shareholders Undertakings” means the undertaking letter agreement from the FEEL
Shareholders to Standard Bank in the agreed form.”
	 
	11.	 	A new definition of “Indonesia JVs” shall be inserted in Clause 1.1 immediately after
the definition of “Indemnity Cap” as follows:
	 
	 	 	““Indonesia JVs” means (a) PT. MI Energy Indonesia, a limited liability company domiciled
in Jakarta and formed in 2007 by MIE, Sinofar Limited (a company domiciled in Singapore),
Mr. Zhang Huien, Mr. Zhang Ruilin and PT. Sartika Raya (a company domiciled in Jakarta);
(b) a joint venture established pursuant to a joint venture agreement dated May 3, 2007
between PT. MI Energy Indonesia and PT. Petro Muba; (c) a joint venture established
pursuant to a joint venture agreement dated 2007 between PT. MI Energy Indonesia and
Perusahaan Daerah Sarana Pembangunan Muara Enim; and (d) PT. Excel Delight International
Energy, a limited liability company domiciled in Jakarta and formed in 2007 by MIE,
Darfield International Limited, Zhang Huien, Zhang Ruilin and PT. Sartika Raya.”
	 
	12.	 	A new definition of “Put Option” shall be inserted in Clause 1.1 immediately after the
definition of “Put Exercise Notice” as follows:
	 
	 	 	““Put Option” shall have the meaning set forth in Clause 5A.l (a).”
	 
	13.	 	The definition of “Put Option Holder” in Clause 1.1 shall be deleted in its entirety.
	 
	14.	 	The definition of “Put Option Period “ in Clause 1.1 shall be deleted in its entirety and
replaced with the following:
	 
	 	 	““Put Option Period “ means the period commencing on the earlier of (i) the day following
the date falling twenty-four (24) months after the Completion under the TPG SPA and (ii)
date of the occurrence of an Early Put Option Trigger Event and ending on the earlier of (A)
the day following the date falling sixty (60) months after the Completion and (B) the
closing date of the Qualified IPO. “
	 
	15.	 	The definition of “Put Price” in Clause 1.1 shall be deleted in its entirety and replaced
with the following:

8

 

	 	 	““Put Price” means a price per Put Share equal to the greater of:

	 	 	 	(i) the Fair Value of such Put Share as of the date of the Put Exercise Notice; and
	 
	 	 	 	(ii) an amount equal to the Purchase Price divided by the number of Purchased Shares
plus (B) 15% per annum on such amount compounded on an annual basis from the
Completion Date on which such Put Share was issued through the date of the Put
Exercise Notice (such greater amount, the “Base Put Amount”),
	 
	 	 	 	less,
	 
	 	 	 	(A) the aggregate amount of any and all distributions made in respect of such
Put Share plus 15% per annum from the date of such distribution compounded
on an annual basis through the date of the Put Exercise Notice, less
	 
	 	 	 	(B) the Allocable Indemnity Payment in respect of such Put Share plus 15%
per annum from the date of such payment compounded on an annual basis
through the date of the Put Exercise Notice,
	 
	 	 	 	plus, interest on the Base Put Amount at 15% per annum compounded on an
annual basis from the date of the Put Exercise Notice through the date on which
such Put Shares are purchased and fully paid.”

	16.	 	The definition of “Put Purchase Date” in Clause 1.1 shall be deleted in its entirety
and replaced with the following:
	 
	 	 	“Put Purchase Date” shall have the meaning set forth in Clause 5A.l (b).
	 
	17.	 	A new definition of “Put Return Deficiency” shall be inserted in Clause 1.1
immediately after the definition of “Put Right” as follows:
	 
	 	 	“Put Return Deficiency” shall have the meaning set forth in Clause 5A.l(c).”
	 
	18.	 	A new definition of “Put Return Deficiency Payment Date” shall be inserted in Clause
1.1 immediately after the definition of “Put Return Deficiency” as follows:
	 
	 	 	““Put Return Deficiency Payment Date”
shall have the meaning set forth in Clause 5A.1(c).”
	 
	19.	 	The definition of “Put Shares” in Clause 1.1 shall be deleted in its entirety and
replaced with the following:
	 
	 	 	“Put Shares” shall have the meaning set forth in Clause 5A.l (a).”
	 
	20.	 	The definition of “Recognised Stock Exchange” in Clause 1.1 shall be deleted in its
entirety and replaced with the following:
	 
	 	 	“Recognised Stock Exchange” means NASDAQ, the New York Stock Exchange, the Toronto Stock
Exchange, the Australian Stock Exchange, the Euronext Paris, the Tokyo Stock Exchange, the
Deutsche Borse, or the main board of any of the Stock Exchange of Hong Kong Limited, the
Singapore Stock Exchange, the London Stock

9

 

	 	 	Exchange, or any other stock exchange of equal standing reasonably agreed by
Standard Bank.”

	21.	 	A new definition of “Restated Articles” shall be inserted in Clause 1.1 immediately
after the definition of “Repurchase” as follows:
	 
	 	 	““Restated Articles” means the means the Amended and Restated Memorandum and Articles of the
Company, in the agreed form (and as may be amended from time to time).”
	 
	22.	 	A new definition of “Shareholders’ Agreement” shall be inserted in Clause 1.1
immediately after the definition of “Shares” as follows:
	 
	 	 	““Shareholders’ Agreement” means the shareholders’ agreement to be entered into by and
among Standard Bank, TPG, FEEL, MIE and the Company in the agreed form.””
	 
	23.	 	A new definition of “Specific Indemnities” shall be inserted in Clause 1.1 immediately
after the definition of “Single Purchase” as follows:
	 
	 	 	““Specific Indemnities” shall have the meaning set forth in Clause 8.4.”
	 
	24.	 	A new definition of “Standard Bank Conversion Amount” shall be inserted in Clause
1.1 immediately after the definition of “Standard Bank Amendment” as follows:
	 
	 	 	“Standard Bank Conversion Amount” shall have the meaning set forth in Clause 5.6(b).”
	 
	25.	 	A new definition of “Standard Bank Conversion Right” shall be inserted in Clause 1.1
immediately after the definition of “Standard Bank Conversion Amount” as follows:
	 
	 	 	““Standard Bank Conversion Right” shall have the meaning set forth in Clause 5.5.”
	 
	26.	 	A new definition of “Standard Bank Conversion Termination Date” shall be inserted
in Clause 1.1 after the definition of “Standard Bank Conversion Right” as follows:
	 
	 	 	““Standard Bank Conversion Termination Date” shall have the meaning set forth in Clause
5.5.”
	 
	27.	 	A new definition of “Standard Bank Ordinary Shares” shall be inserted in Clause 1.1
immediately after the definition of “Standard Bank Conversion Termination Date” as
follows:
	 
	 	 	““Standard Bank Ordinary Shares” shall have the meaning set forth in Clause 5.5.”
	 
	28.	 	The definition of “Warrantor” in Clause 1.1 shall be deleted in its entirety and
replaced with the following:
	 
	 	 	““Warrantors” means the Company and FEEL (each, a “Warrantor”).

10

 

	29.	 	The definition of “TPG SPA” shall be inserted in Clause 1.1 immediately after the
definition of “Subsidiary” as follows:
	 
	 	 	““TPG SPA” means the Series A Preferred Shares Subscription and Put Option Agreement dated
as of June 19, 2009 by and among TPG Star Energy Ltd., FEEL, the Company and MIE.”
	 
	30.	 	Clause 5.5 of the Shares Purchase Agreement shall be deleted in its entirety and
replaced with the following:

	 	“5.5 	 	Undertakings with respect to conversion of shareholding. During the
period commencing on the date of the completion of the first transaction in which
shares in the Company are issued to any person on terms which are not identical to
the Ordinary Shares (such first series of shares being “Preferred Shares”),
or any Ordinary Shares are converted to Preferred Shares and issued to any person
(“Preferred Shares Investor”) for an aggregate amount of not less than
$20,000,000 (such issuance or conversion, a “Preferred Shares Transaction”) and
ending two (2) months after the date of completion of the Preferred Shares
Transaction (the “Standard Bank Conversion Termination Date”), Standard
Bank shall have the right (the “Standard Bank Conversion Right”) to require
FEEL to promptly take all steps necessary to ensure that all or part of the
Ordinary Shares then held by Standard Bank
(the “Standard Bank Ordinary Shares”) are
converted into Preferred Shares without charge or premium at the
following conversion ratio:

				
	 	Number of Preferred Shares =	 	Purchase Price

Per Preferred Share Purchase Price

	 	 	 	with the same rights attributable thereto as all other such series of Preferred
Shares in issue at the time of such conversion. For the avoidance of doubt, the
total number of outstanding Shares shall not change as a result of the
transactions contemplated under this Clause 5.5.”

	31.	 	A new Clause 5.6 shall be inserted immediately after Clause 5.5 as follows:

	 	“5.6 	 	Completion of Conversion.

	 	(a)	 	On or before the Standard Bank Conversion Termination Date, Standard
Bank shall notify FEEL of its intent to exercise the Standard Bank Conversion Right
by providing a written notice to FEEL (with a copy to the Company and MIE)
as set forth herein setting forth the number of Standard Bank Ordinary Shares
that Standard Bank intends to convert (the “Conversion Notice”), along with
the certificate or certificates representing the Standard Bank Ordinary Shares
to be converted into Preferred Shares.
	 
	 	(b)	 	Upon receipt of the Conversion Notice, FEEL shall promptly take all
actions necessary or desirable to: (i) cause the Company to convert that number of the
Standard Bank Ordinary Shares into Preferred Shares as set forth in the
Conversion Notice, provided however, if the total number of Preferred Shares

11

 

	 	 	 	to be issued to Standard Bank upon exercise of the Standard Bank Conversion Right in
accordance with Clause 5.5 (the “Standard Bank Conversion Amount”) exceeds
197,049 Preferred Shares, FEEL shall cause the Company to convert that number of
Ordinary Shares held by FEEL into that number of Preferred Shares that is equal to
the difference of the Standard Bank Conversion Amount minus 197,049 and transfer
such number of Preferred Shares from FEEL to Standard Bank, (ii) cause the Company
to issue a share certificate in the name of Standard Bank representing the aggregate
number of Preferred Shares to be issued and/or transferred (as the case may be) to
Standard Bank equal to the Standard Bank Conversion Amount, and a certified copy of
the Register of Members reflecting such issuance and/or transfer (as the case may
be); provided however, in the event that less than all of the Ordinary
Shares held by Standard Bank represented by a certificate are to be converted, a new
certificate representing the balance of the unconverted Ordinary Shares shall
promptly be issued to Standard Bank by the Company; and (iii) surrender to the
Company the certificate or certificates representing all of the Ordinary Shares
owned by FEEL, and cause the Company to issue a new share certificate in the name of
FEEL reflecting the balance of the Ordinary Shares owned by FEEL, and a certified
copy of the Register of Members reflecting such balance.”

	32.	 	Clause 5A of the Original Agreement shall be deleted in its entirety and replaced with
the following:

	 	“5A.	 	PUT OPTION
	 
	 	5A.1. 	 	Put Option.

	 	(a)	 	At any time during the Put Option Period, Standard Bank shall have the
option, exercisable in its sole discretion and exercisable only once
(the “Put Option”), to require FEEL to purchase some or all of the Shares (the
“Put Shares”) then owned by Standard Bank (at the Put Price multiplied by the
applicable number of Put Shares) by delivering written notice thereof to FEEL
(with a copy to MIE and the Company) (the “Put Exercise Notice”) specifying
the number of Put Shares to be purchased. FEEL shall pay the aggregate Put
Price for the Put Shares to Standard Bank in full within one (1) year of the
date of the Put Exercise Notice. MIE and the Company shall be jointly and
severally liable with FEEL for the obligations of FEEL set forth in this Clause
5A.
	 
	 	(b)	 	Upon delivery by Standard Bank of the Put Exercise Notice, FEEL shall
elect
whether it wishes to purchase the Put Shares (i) in one (1) installment
(a “Single Purchase”) or (ii) in three (3) evenly spaced installments
(with the installments being as nearly as practicable of equal numbers of Put Shares and
the final installment being on a date no later than one (1) year after the date of
the Put Exercise Notice) (an “Installment Purchase”). The first installment in
an Installment Purchase shall be made no later than ninety (90) days after the
date of the Put Exercise Notice.

12

 

	 	 	 	No later than ten (10) days after the date of the Put Exercise Notice, FEEL shall notify
Standard Bank by written notice (the “Election Notice”) of (x) the
election of a Single Purchase or an Installment Purchase, (y) if FEEL elects an Installment
Purchase, the dates of each installment (each, a “Put Purchase Date”) and
the number of Put Shares to be purchased on each Put Purchase Date, and (z) the time and place in Beijing for the closing of
the sale and purchase of the Put Shares to be sold on each Put Purchase Date.

	 	 	 	No later than five (5) days after the date on which the Put Price must be finally determined in
accordance with this Agreement, FEEL shall notify Standard Bank by written notice of the Put
Price payable on each Put Purchase Date, together with details of the method of calculation of
the Put Price.
	 
	 	 	 	If FEEL elects a Single Purchase or an Election Notice is not given in accordance with the
foregoing provisions, FEEL shall be deemed to have elected a Single Purchase on such date
(which shall be treated as the Put Purchase Date but which shall not be later than five (5)
days after the date on which the Put Price must be finally determined in accordance with this
Agreement) and at such time and place in Beijing as Standard Bank shall notify FEEL (with a
copy to MIE and the Company).
	 
	 	(c)	 	Notwithstanding any other provisions in this Agreement, if the aggregate Put Price for the
Put Shares has not been paid to Standard Bank in full within one (1) year after the date of
the Put Exercise Notice:

	 	(i)	 	Standard Bank shall first sell, transfer or assign any unpurchased Put Shares to any
third party notwithstanding the provisions in Clauses [2.1, 2.2, and 2.3] of the
Shareholders’ Agreement; and
	 
	 	(ii)	 	if the net proceeds recovered from the sale by Standard Bank of unpurchased Put Shares
are less than the aggregate Put Price of the unpurchased Put Shares plus any Losses Standard
Bank may incur as a result of such failure by MIE, the Company and/or FEEL to pay the
aggregate Put Price of the unpurchased Put Shares (such deficiency, the
“Put Return Deficiency”), then FEEL, MIE and the Company shall jointly and
severally indemnify Standard Bank for the unpaid amount of the Put Return Deficiency (the date on which any such
unpaid amount is paid to Standard Bank, the “Put Return Deficiency Payment Date”),
to the extent that any of FEEL, MIE and the Company has from time to time lawfully available
funds to do so and that it will be in compliance (after paying such unpaid amount) with all
of the terms of the Standard Bank Facility under which it has outstanding obligations on the
relevant Put Return Deficiency Payment Date (“Compliance with Financing Agreements”)
provided, that if any of FEEL, MIE and the Company does not fulfill its obligations
to pay any part of such unpaid amount of the Put Return Deficiency on the relevant Put
Return Deficiency Payment Date as a result of the application of the restrictions set forth
in this paragraph (ii), it shall remain subject to the obligation to pay the balance of the
Put Return Deficiency as soon as it is able to pay in a manner that complies with such
restrictions; provided further, if and for so long as there is a Put Return
Deficiency (as defined in

13

 

	 	 	 	the TPG SPA) under the TPG SPA, FEEL, MIE and the Company shall not pay to
Standard Bank any unpaid amount of the Put Return Deficiency pursuant to this
paragraph (ii) before TPG having recovered all the proceeds that it is entitled
to receive under paragraph (ii) of Clause 7.1(c) of the TPG SPA and the Share
Charge (as defined in the TPG SPA).

	 	5A.2. 	 	Completion.

	 	(a)	 	A Put Share shall only be transferred to FEEL if and to the extent
that the
relevant Put Price for such Put Share has been paid in full, and until payment
of the relevant Put Price has been made in full, Standard Bank shall maintain
all its right, title and interest in such Put Share.
	 
	 	(b)	 	On or before the relevant Put Purchase Date, Standard Bank shall surrender
the certificate or certificates representing the Put Shares to be purchased on
such Put Purchase Date (or, if Standard Bank alleges that such certificate has
been lost, stolen or destroyed, a lost certificate affidavit and agreement
reasonably acceptable to the Company to indemnify the Company against any
claim that may be made against the Company on account of the alleged loss,
theft or destruction of such certificate) to FEEL, MIE or the Company, in the
manner and at the place designated in the Election Notice against payment in
full of the relevant Put Price in immediately available funds to the order of
Standard Bank. In the event that less than all of the Shares held by Standard
Bank represented by a certificate are purchased, a new certificate representing
the balance of the unsold Shares held by Standard Bank shall promptly be
issued to Standard Bank by the Company and a certificate for the Put Shares
so purchased shall be issued to FEEL, MIE or the Company (as the case may be).”

	33.	 	A new Clause 8.4 shall be inserted immediately after Clause 8.3 as follows:

	 	“8.4 	 	Specific Indemnity. Subject to and as from the Completion, the
Warrantors shall jointly and severally indemnify and hold harmless Standard Bank from
and against any Losses whether arising before or after Completion to the extent
resulting from:

	 	(a)	 	any claims made pursuant to or in connection with the Amendment to Stock
Purchase Agreement dated as of May 19, 2008 by and among Microbes, MIE
and FEEL against the Company or MIE (other than any claim that the
Company did not loan to FEEL US$20,000,000 in time to enable FEEL
to meet the payment amount payable under such agreement), including
Losses accrued against MIE prior to the date of this Agreement, and all other claims
by Microbes against the Company, MIE or the Investors relating to Microbes’
investment in MIE. Any payment made by MIE or the Company to Microbes
(or its affiliated parties) shall be applied against, and result in a
reduction of MIE’s liability vis-a-vis FEEL;
	 
	 	(b)	 	the arbitration proceedings brought by GOC on 14 May 2003 and 27 April
2004, respectively, in relation to an operating agreement entered into between

14

 

	 	 	 	Microbes and GOC dated 25 September 2000 and the subject matter of those
proceedings;

	 	(c)	 	Fullfame Enterprise Ltd.’s previous shareholding in MIE, including but not
limited to its rights to disproportionate dividend distributions and other
governance rights or otherwise, any rights granted pursuant to the cooperation
agreement and the share transfer agreement between FEEL, MIE and Fullfame
Enterprise Ltd. dated 30 June 2005 and 22 September 2005 respectively, and
any claims brought by current or previous holders or beneficial owners of
shares in, or directors of, Fullfame Enterprise Ltd. (or by anyone who alleges
to be such a person);
	 
	 	(d)	 	any contravention of laws or regulation in the PRC by MIE or FEEL relating
to loans, guarantees given by Zhang, debt settlements, or transactions having
similar effect made between MIE, the Company, FEEL and/or Zhang or any
other national or resident of the PRC;
	 
	 	(e)	 	the failure or delay by the Company or MIE or any of the current or previous
holders or owners of shares or other securities in FEEL, the Company or MIE
in obtaining any required SAFE registrations or approvals (including
roundtripping approvals);
	 
	 	(f)	 	any claim for taxes of MIE (which term shall cover taxes and duties of any
kind, amounts withheld on account of taxation of any person, social security
charges and similar, fines and late payment interest charges and penalties,
duties, and claw-back of relief previously granted) that were incurred, or
which relate to any period, prior to the Completion Date and not paid by MIE
before such date, save to the extent provided for as a specific accrual in the
2008 Accounts or in any management accounts relating to a period after 31
December 2008 which have been provided to Standard Bank prior to the date
of this Agreement and save for taxation accruing in the ordinary course on
MIE’s trading activities undertaken since 31 December 2008; and
	 
	 	(g)	 	MIE’s direct or indirect interests in any of the Indonesia JVs, including but not
limited to any claims against MIE in relation to (i) any operations, business,
assets, liabilities or obligations of any of the Indonesia JVs, (ii) MIE’s
obligation to provide any funds or financial assistance of any kind to any of
the Indonesia JVs or any third parties in connection with MIE’s investment in
the Indonesia JVs and/or (iii) any termination, liquidation or winding-up of
MIE’s direct or indirect interests in any of the Indonesia JVs

	 	 	(collectively, the “Specific Indemnities”); provided, however, that the Warrantors
shall have no obligation to indemnify or hold harmless Standard Bank for any such claims to
the extent that the aggregate amount of Losses in respect of (i) the Specific Indemnities
for which the Warrantors would otherwise be liable and (ii) any breach of the Warranties
exceeds the Indemnity Cap.”
	 
	34.	 	Clause 11 of the Original Agreement shall be deleted in its entirety and replaced with
the following:

15

 

	11.	 	NOTICES

All notices, consents, and other communications under or pursuant to this Agreement
(“Notices”) shall be in writing and in the English language and shall be delivered (A) by
hand, (B) by facsimile (with receipt confirmed); provided, however, that a copy is promptly
thereafter mailed by reputable private courier, return receipt requested, (C) by the addressee or
(D) by such other means as the Parties may agree from time to time; in each case to the appropriate
addresses and facsimile numbers set forth below (or to such other addresses or facsimile numbers as
a Party may designate as to itself by not less than five (5) Business Days notice to the other
Parties):

	 	 	 	 	 
	if to Standard Bank, to

	 	:
	 	Standard Bank Plc

Cannon Bridge House

25 Dowgate Hill

London EC 4R 2SB

Fax: +852 2822 7947

Attention: John Wixley c/o Standard Bank Asia Limited
	 
	if to Zhang, to

	 	:
	 	Zhang Ruilin

Suite 406, Block C, Grand Place

5 Hui Zhong Road

Chaoyang District, Beijing 10010

PRC

Facsimile: (8610) 5123 8866
	 
	if to Zhao, to

	 	:
	 	Zhao Jiangwei

Suite 406, Block C, Grand Place

5 Hui Zhong Road

Chaoyang District, Beijing 10010

PRC

Facsimile: (8610) 5123 8866
	 
	if to Shang, to

	 	:
	 	Shang Zhiguo

Suite 406, Block C, Grand Place

5 Hui Zhong Road

Chaoyang District, Beijing 10010

PRC

Facsimile: (8610) 5123 8866
	 
	if to FEEL, the Company, or MIE

	 	:
	 	Suite 406, Block C, Grand Place

5 Hui Zhong Road

Chaoyang District, Beijing 10010

PRC

Attention: Mr. Zhang Ruilin

Facsimile: (8610) 5123 8866

16

 

EXHIBIT A

RESTATED ARTICLES

17

 

EXHIBIT B

AMENDED OPTION AGREEMENT

18

 

EXHIBIT C

SHAREHOLDERS’ AGREEMENT

19

 

EXHIBIT D

FEEL SHAREHOLDERS UNDERTAKINGS

20

 

Exhibit A

Company No.: MC-207100

SECOND AMENDED AND RESTATED

MEMORANDUM

AND

ARTICLES OF ASSOCIATION

OF

MIE Holdings Corporation

(Adopted by Special Resolution dated [     ])

Incorporated on the 20th day of March, 2008

INCORPORATED IN THE CAYMAN ISLANDS

 

 

THE COMPANIES LAW(2007 Revision)

OF THE CAYMAN ISLANDS

Exempted Company Limited by Shares

SECOND AMENDED AND RESTATED

MEMORANDUM OF ASSOCIATION

OF

MIE Holdings Corporation

(Adopted by Special Resolution dated [               ])

	1.	 	The name of the Company is MIE Holdings Corporation.
	 
	2.	 	The Registered Office of the Company shall be at the offices of Maples Corporate Services
Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands, or at such other place as the
Directors may from time to time decide.
	 
	3.	 	The objects for which the Company is established are unrestricted and shall include, but
without limitation, the following:

	 	(a)	 	(i) 	 	To carry on the business of an investment company and to act as promoters and entrepreneurs
and to carry on business as financiers, capitalists, concessionaires, merchants,
brokers, traders, dealers, agents, importers and exporters and to undertake and
carry on and execute all kinds of investment, financial, commercial, mercantile,
trading and other operations.

	 	(ii)	 	To carry on whether as principals, agents or otherwise howsoever the
business of realtors, developers, consultants, estate agents or managers,
builders, contractors, engineers, manufacturers, dealers in or vendors of all
types of property including services.

	 	(b)	 	To exercise and enforce all rights and powers conferred by or incidental to the
ownership of any shares, stock, obligations or other securities including without prejudice to the
generality of the foregoing all such powers of veto or control as may be conferred by virtue of the
holding by the Company of some special proportion of the issued or nominal amount thereof, to provide
managerial and other executive, supervisory and consultant services for or in relation to any
company in which
the Company is interested upon such terms as may be thought fit.
	 
	 	(c)	 	To purchase or otherwise acquire, to sell, exchange, surrender, lease, mortgage,
charge, convert, turn
to account, dispose of and deal with real and personal property and rights of all kinds and, in
particular, mortgages, debentures, produce, concessions, options, contracts, patents, annuities,
licences, stocks, shares, bonds, policies, book debts, business concerns, undertakings, claims,
privileges and choses in action of all kinds.
	 
	 	(d)	 	To subscribe for, conditionally or unconditionally, to underwrite, issue on
commission or otherwise,
take, hold, deal in and convert stocks, shares and securities of all kinds and to enter
into partnership

1

 

	 	 	 	or into any arrangement for sharing profits, reciprocal concessions or cooperation with
any person or company and to promote and aid in promoting, to constitute, form or
organise any company, syndicate or partnership of any kind, for the purpose of
acquiring and undertaking any property and liabilities of the Company or of advancing,
directly or indirectly, the objects of the Company or for any other purpose which the
Company may think expedient.

	 	(e)	 	To stand surety for or to guarantee, support or secure the performance of all or
any of the obligations
of any person, firm or company whether or not related or affiliated to the Company in
any manner
and whether by personal covenant or by mortgage, charge or lien upon the whole or any
part of the
undertaking, property and assets of the Company, both present and future, including its
uncalled
capital or by any such method and whether or not the Company shall receive valuable
consideration
thereof.
	 
	 	(f)	 	To engage in or carry on any other lawful trade, business or enterprise which may
at any time appear
to the Directors of the Company capable of being conveniently carried on in conjunction
with any of
the aforementioned businesses or activities or which may appear to the Directors or the
Company
likely to be profitable to the Company.

	 	 	In the interpretation of this Amended and Restated Memorandum of Association in general and
of this Article 3 in particular no object, business or power specified or mentioned shall be
limited or restricted by reference to or inference from any other object, business or power,
or the name of the Company, or by the juxtaposition of two or more objects, businesses or
powers and that, in the event of any ambiguity in this Article or elsewhere in this Amended
and Restated Memorandum of Association, the same shall be resolved by such interpretation
and construction as will widen and enlarge and not restrict the objects, businesses and
powers of and exercisable by the Company.
	 
	4.	 	Except as prohibited or limited by the Companies Law (as amended) and by the Amended and Restated
Articles of Association of the Company, the Company shall have full power and authority to carry out any
object and shall have and be capable of from time to time and at all times exercising any and
all of the
powers at any time or from time to time exercisable by a natural person or body corporate in
doing in any
part of the world whether as principal, agent, contractor or otherwise whatever may be
considered by it
necessary for the attainment of its objects and whatever else may be considered by it as
incidental or
conducive thereto or consequential thereon, including, but without in any way restricting the
generality of
the foregoing, the power to make any alterations or amendments to this Amended and Restated
Memorandum of Association and the Amended and Restated Articles of Association of the Company
considered necessary or convenient in the manner set out in the Amended and Restated Articles
of
Association of the Company, and the power to do any of the following acts or things, viz: to
pay all
expenses of and incidental to the promotion, formation and incorporation of the Company; to
register the
Company to do business in any other jurisdiction; to sell, lease or dispose of any property
of the Company;
to draw, make, accept, endorse, discount, execute and issue promissory notes, debentures,
bills of
exchange, bills of lading, warrants and other negotiable or transferable instruments; to lend
money or other
assets and to act as guarantors; to borrow or raise money on the security of the undertaking
or on all or any
of the assets of the Company including uncalled capital or without security; to invest monies
of the
Company in such manner as the Directors determine; to promote other companies; to sell the
undertaking
of the Company for cash or any other consideration; to distribute assets in specie to Members
of the
Company; to make charitable or benevolent donations; to pay pensions or gratuities or provide
other
benefits in cash or kind to Directors, officers, employees, past or present and their
families; to purchase
Directors and officers liability insurance and to carry on any trade or business and
generally to do all acts
and things which, in the opinion of the Company or the Directors, may be conveniently or
profitably or
usefully acquired and dealt with, carried on, executed or done by the Company in connection
with the
business aforesaid provided, that the Company shall only carry on the businesses for
which a licence is
required under the laws of the Cayman Islands when so licensed under the terms of such laws.
	 
	5.	 	The liability of each Member is limited to the amount from time to time unpaid on such Member’s Shares.
	 
	6.	 	The share capital of the Company is 18,000,000 divided into (i) 15,000,000 Ordinary Shares of a par value

2

 

	 	 	of US$0.01 each and (ii) 3,000,000 Series A Preferred Shares of a par value of US$0.01,
each with power for the Company insofar as is permitted by law, to redeem or purchase any of
its shares and to increase or reduce the said capital subject to the provisions of the
Companies Law (as amended) and the Amended and Restated Articles of Association and to issue
any part of its capital, whether original, redeemed or increased with or without any
preference, priority or special privilege or subject to any postponement of rights or to any
conditions or restrictions and so that unless the conditions of issue shall otherwise
expressly declare every issue of shares whether declared to be preference or otherwise shall
be subject to the powers hereinbefore contained, provided that, notwithstanding any
provision to the contrary contained in this Amended and Restated Memorandum of Association,
the Company shall have no power to issue bearer shares, warrants, coupons or certificates.
Each share in the Company confers upon the Member those rights set forth in the Amended and
Restated Articles of Association.

	7.	 	The Company shall have the power to register by way of continuation as a body corporate
limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be
deregistered in the Cayman Islands.

3

 

THE COMPANIES LAW (2007 Revision)

OF THE CAYMAN ISLANDS

Company Limited by Shares

SECOND AMENDED AND RESTATED ARTICLES OF

ASSOCIATION

OF

MIE Holdings Corporation

(Adopted by Special Resolution dated [               ])

	1.	 	In these Articles, Table A in the Schedule to the Statute does not apply and,
unless there be something in the subject or context inconsistent therewith,

	 	 	 
	“Additional Securities”
	 	has the meaning ascribed to it in Article 7(d)(v)(A).

	 	 	 

	“Affiliate”
	 	means, with respect to any specified Person, any other Person
who or
which, directly or indirectly, controls, is controlled by, or is under
common control with, such specified Person, including, without
limitation, any general partner, officer, director, member, manager or
employee of such Person and any investment fund now or hereafter
existing that is controlled by or under common control with one or
more general partners or managing members of, or shares the same
management company with, such Person; provided, that (i) with
respect to TPG, Affiliate shall include any other person that
controls, is
controlled by, or is under common control with TPG Star, L.P.
and/or
its Affiliates, and (ii) with respect to FEEL, Affiliate shall
include
Zhang Ruilin and Zhao Jiangwei and each of their respective
Affiliates.

	 	 	 

	“Annual General
Meeting”
	 	has the meaning ascribed to it in Article 40(a).

	 	 	 

	“Articles”
	 	means these Articles as from time to time altered by Special
Resolution and duly filed with the Registrar of Companies.

	 	 	 

	“Auditors”
	 	means the persons for the time being performing the duties of
auditors
of the Company.

	 	 	 

	“Board”
	 	means the board of directors of the Company.

	 	 	 

	“Business Day”
	 	means any day that is not a Saturday, a Sunday or a day on
which
banks are required or permitted to be closed in the Hong Kong
SAR or
the People’s Republic of China.

	 	 	 

	“Chairman”
	 	has the meaning ascribed to it in Article 92.

4

 

	 	 	 
	“Class”
	 	means any class of shares as may from time to time be issued by the
Company.

	 	 	 

	“Company”
	 	means MIE Holdings Corporation.

	 	 	 

	“Company Employee
Share Option Scheme”
	 	means any employee incentive scheme pursuant to which the
Company may issue Shares or options for Shares constituting up
to 5%
of the share capital of the Company as of the date hereof
pursuant to a
plan approved by the Board.

	 	 	 

	“control”
	 	means possession, directly or indirectly, of the power to direct
or cause
the direction of the management and policies of such other Person
(whether through ownership interest, by contract or otherwise);
provided, however, that, in any event, any Person that owns
directly or
indirectly more than fifty percent (50%) of the ordinary voting
interests in such other Person shall be deemed to control such
other
Person.

	 	 	 

	“Conversion Price”
	 	means the Original Conversion Price applicable to the Series A
Preferred Shares, subject to adjustment as provided below in
Article
7(d)(v).

	 	 	 

	“Conversion Rate”
	 	means the number of Ordinary Shares into which a Series A
Preferred Share is convertible.

	 	 	 

	“Conversion Rights”
	 	has the meaning ascribed to it in Article 7(d).

	 	 	 

	“Cut-Off Date”
	 	has the meaning ascribed to it in Article 10(b)(ii).

	 	 	 

	“debenture”
	 	means debenture stock, mortgages, bonds and any other such
securities of the Company whether constituting a charge on the
assets of the Company or not.

	 	 	 

	“Directors”
	 	means the directors for the time being of the Company.

	 	 	 

	“dividend”
	 	includes an interim dividend and bonus.

	 	 	 

	“Electing Offeree” and
“Electing Offerees”
	 	have the meaning ascribed to them in Article 10(b)(ii).

	 	 	 

	“Encumbrance”
	 	means any deed to secure debt, assignment, security right,
pledge, lien,
charge, option, encumbrance and claim or right of any kind of third
persons, whether voluntarily incurred or arising by operation of law,
including any agreement to give any of the foregoing in the future, and
in relation to shares in the issued shares capital of a company, any right
to appoint a proxy, exercisable by any party other than the holder of
such shares.

	 	 	 

	“Excluded Shares”
	 	means (i) Ordinary Shares issued and outstanding on the date hereof;
(ii) Series A Preferred Shares issued and outstanding on the date
hereof; (iii) Series A Preferred Shares issuable in accordance
with the
Standard Bank Equity Agreements, (iv) Ordinary Shares issued or
deemed to have been issued pursuant to a stock grant, stock
option,

5

 

	 	 	 
	 	 	option plan, purchase plan or other employee stock
incentive program or agreement, in each case, where the
grant of such options is approved by the Board; (v)
Ordinary Shares issued or issuable upon conversion of the
Series A Preferred Shares; (vi) all Shares issued as a
dividend or distribution on Series A Preferred Shares;
(vii) Ordinary Shares issued or issuable in a Qualified
IPO; and (viii) Ordinary Shares or any class of preferred
shares issued or deemed to have been issued as a result
of any liquidation or winding up of the Company.

	 	 	 

	“Extended Cut-Off Date”
	 	has the meaning ascribed to it in Article 10(b)(iii).

	 	 	 

	“Extended Preemption
Cut-Off Date”
	 	has the meaning ascribed to it in Article 6(b)(ii).

	 	 	 

	“FEEL”
	 	means Far East Energy Limited, a company incorporated in
the Special Administration Region of Hong Kong.

	 	 	 

	“Indebtedness”
	 	means all (i) funded indebtedness of the Company and its
Subsidiaries, including, (A) all funded obligations for
borrowed money, (B) funded obligations evidenced by
bonds, notes, debentures, loan agreements or similar
instruments, (C) otherwise as an account party in respect
of or arising under letters of credit, bankers’
acceptances, bank guaranties, surety bonds and similar
instruments, (ii) the aggregate amount required to be
capitalized under leases under which the Company or any
of its Subsidiaries is the lessee, (iii) obligations of
the Company or any of its Subsidiaries for deferred
purchase price of property or services (other than trade
accounts payable in the ordinary course of business), and
(iv) all accrued and unpaid interest on any of the
foregoing.

	 	 	 

	“JMC Budget”
	 	has the meaning as ascribed to it in Article 98 (c)(ix).

	 	 	 

	“Liquidation Preference”
	 	has the meaning as ascribed to it in Article 7(c)(i).

	 	 	 

	“Material Subsidiary”
	 	means MIE and any other member of the MIE Group having
more than 10% of the assets of the MIE Group as shown in
the latest financial statements of that entity.

	 	 	 

	“Member”
	 	means each person whose name is, from time to time and
for the time being, entered in the register of Members as
the holder of one or more Shares.

	 	 	 

	“Memorandum”
	 	means the Memorandum of Association of the Company as
amended from time to time altered by Special Resolution
and duly filed with the Registrar of Companies.

	 	 	 

	“MIE”
	 	means MI Energy Corporation, an exempted company
incorporated with limited liability in the Cayman
Islands.

	 	 	 

	“MIE Group”
	 	means the Company, its Subsidiaries and other entities
controlled directly or indirectly by the Company.

	 	 	 

	“Minimum Shareholding
Percentage”
	 	means a Shareholding Percentage of not less than five
percent (5%).

	 	 	 

	“month”
	 	means calendar month.

6

 

	 	 	 
	“New Securities”
	 	means Shares or rights, options, warrants or other
securities convertible into or exercisable or exchangeable for
Shares issued by the Company, other than Shares issued or
issuable:

	 	 	 

	 	 	(a) pursuant to the Company Employee Share Option Scheme;

	 	 	 

	 	 	(b) upon conversion of the Series A Preferred Shares;

	 	 	 

	 	 	(c) as a dividend or other distribution on the Series A
Preferred Shares;

	 	 	 

	 	 	(d) pursuant to a Qualified IPO;

	 	 	 

	 	 	(e) in connection with any stock split or stock dividend; and

	 	 	 

	 	 	(f) pursuant to the Standard Bank Equity Agreements.

	 	 	 

	“Non-Offering Members”
	 	has the meaning ascribed to it in Article 10(b)(i).

	 	 	 

	“Offered Shares”
	 	has the meaning ascribed to it in Article 10(b)(i).

	 	 	 

	“Offering Member”
	 	has the meaning ascribed to it in Article 10(b)(i).

	 	 	 

	“Ordinary Directors”
	 	has the meaning ascribed to it in Article 70.

	 	 	 

	“Ordinary Resolution”
	 	means a resolution passed by a simple majority of the votes of
such Members as, being entitled to do so, vote in person or,
where proxies are allowed, by proxy at a general meeting, and
includes a unanimous written resolution.

	 	 	 

	“Ordinary Shares”
	 	means the ordinary shares in the capital of the Company, of par
value US$0.01 each.

	 	 	 

	“Ordinary Shares
Equivalents”
	 	has the meaning ascribed to it in Article 7(d)(v)(A).

	 	 	 

	“Original Conversion
Price”
	 	means an amount equal to the Series A Preferred Shares Purchase
Price.

	 	 	 

	“paid-up”
	 	means paid-up and/or credited as paid-up.

	 	 	 

	“Participant”
	 	has the meaning ascribed to it in Article 10(c)(ii).

	 	 	 

	“Person”
	 	means any natural person, individual, partnership, joint
venture, company, corporation, trust, estate, juridical entity,
firm, association, statutory body, unincorporated
organization, or governmental authority or any other entity
whether acting in an individual, fiduciary or other capacity.

	 	 	 

	“Preemption Cut-Off
Date”
	 	has the meaning ascribed to it in Article 6(b)(i).

	 	 	 

	“Proposed Transfer”
	 	means any Transfer of any Shares (or any interest therein)
proposed by any Member.

7

 

	 	 	 
	“Prospective Transferee”
	 	means any Person to whom a Member proposes to make a Proposed
Transfer, including a Proposed Transfer by FEEL pursuant to
Article 10(e).

	 	 	 

	“Qualified IPO”
	 	means an underwritten public offering by the Company of its
Shares on a Recognised Stock Exchange pursuant to a
prospectus or offering circular under applicable securities
laws resulting in the shares of the Company becoming freely
tradable.

	 	 	 

	“Recognized Stock Exchange”
	 	means NASDAQ, the New York Stock Exchange, the Toronto Stock
Exchange, the Australian Securities Exchange, the Euronext
Paris, the Tokyo Stock Exchange, the Deutsche Borse, or the
main board of any of the Stock Exchange of Hong Kong Limited,
the Singapore Stock Exchange, or the London Stock Exchange,
or any other stock exchange of equal standing reasonably
agreed by TPG

	 	 	 

	“registered office”
	 	means the registered office for the time being of the Company.

	 	 	 

	“Remaining New Securities”
	 	has the meaning ascribed to it in Article 6(b)(iii).

	 	 	 

	“Scheduled Completion Date”
	 	has the meaning ascribed to it in Article 10(b)(v).

	 	 	 

	“Seal”
	 	means the common seal of the Company and includes every
duplicate seal.

	 	 	 

	“Secretary”
	 	includes an Assistant Secretary and any person appointed to
perform the duties of Secretary of the Company.

	 	 	 

	“Series A Preferred Shares”
	 	means the Series A preferred shares in the capital of the
Company, of par value US$0.01 each.

	 	 	 

	“Series A Preferred Shares
Purchase Price”
	 	means US$24.6999.

	 	 	 

	“Shareholders’ Agreement”
	 	means the shareholders agreement dated [•] by and among TPG,
FEEL, MIE, the Company and certain other shareholders of the
Company, as amended or supplemented from time to time.

	 	 	 

	“Shareholding Percentage”
	 	means, with respect to any Member, the ratio (expressed as a
percentage) of the number of Shares owned, directly or
indirectly, by such Member and its Affiliates to the
aggregate number of all the issued Shares. For the purposes
of determining the number of Shares held by the Members, all
Series A Preferred Shares shall be deemed to have been
converted into Ordinary Shares at the then-applicable
conversion ratio.

	 	 	 

	“Shares”
	 	means the Ordinary Shares and Series A Preferred Shares, and
any other shares of the Company, whether fully or partly
paid.

	 	 	 

	“SPA”
	 	means the series A preferred shares subscription and put
option agreement dated [•] 2009 by and among TPG, FEEL, the
Company and MIE, as amended or supplemented from time to
time.

	 	 	 

	“Special Board
Approval”
	 	means the approval of a majority of the directors of the Board present
and voting at a duly convened meeting, provided that the TPG Director

8

 

	 	 	 
	 	 	shall not have voted against such action.

	 	 	 

	“Special Resolution”
	 	has the same meaning as specified in Article 63 and
includes a unanimous written resolution.

	 	 	 

	“Standard Bank”
	 	means Standard Bank Plc, a financial institution
incorporated in England, and/or one or more of its
Affiliates.

	 	 	 

	“Standard Bank Facility”
	 	means the Borrowing Base Facility Agreement, dated
29 October 2007, by and among MIE, Standard Bank
Asia Limited, as Arranger, Agent, Security Trustee
and Technical Bank, Standard Bank Plc, as the
Offshore Account Bank and the Original Lenders (as
such term is defined therein), as amended, and any
agreement to renew, replace or repay any amounts
outstanding under the Standard Bank Facility
pursuant to the Refinancing Letter Agreement (as
defined in the SPA).

	 	 	 

	“Standard Bank Option
Agreement”
	 	has the same meaning ascribed to it in the SPA.

	 	 	 

	“Standard Bank SPA”
	 	has the same meaning ascribed to it in the SPA.

	 	 	 

	“Standard Bank Equity
Agreements”
	 	has the same meaning ascribed to it in the SPA.

	 	 	 

	“Statute”
	 	means the Companies Law (2007 Revision) of the
Cayman Islands, as amended, and every statutory
modification or re-enactment thereof for the time
being in force.

	 	 	 

	“Subsidiary”
	 	means, with respect to any Person:

	 	 	 

	 	 	(a) any company or corporation more than fifty
percent (50%) of whose shares of any class or
classes having by the terms thereof ordinary voting
power to elect a majority of the directors of such
company or corporation (irrespectively of whether or
not at the time shares of any class or classes of
such company or corporation shall have or might have
voting power by reason of the happening of any
contingency) is at the time owned by such Person
directly or indirectly through one or more
Subsidiaries of such Person; and

	 	 	 

	 	 	(b) any partnership, association, joint venture or
other entity in which such Person directly or
indirectly through one or more Subsidiaries of such
Person has more than a fifty percent (50%) equity
interest.

	 	 	 

	“Tag-Along Notice”
	 	has the meaning ascribed to it in Article 10(c)(i).

	 	 	 

	“Tag-Along Offer”
	 	has the meaning ascribed to it in Article 10(c)(i).

	 	 	 

	“Tag-Along Seller”
	 	has the meaning ascribed to it in Article 10(c)(i).

	 	 	 

	“TPG”
	 	means TPG Star Energy Ltd., an exempted company
incorporated with limited liability in the Cayman
Islands, and/or one or more of its Affiliates.

	 	 	 

	“TPG Director”
	 	has the meaning ascribed to it in Article 70.

	 	 	 

	“Trade Sale”
	 	means a sale of all of the Shares.

9

 

	 	 	 
	“Transfer”
	 	means the direct or indirect sale, offer to sell,
pledge, mortgage, encumbrance, gift, assignment,
transfer or disposition of Shares, or any rights or
interest therein or afforded thereby, or entering
into any contract or agreement to do any of the
foregoing, voluntarily or involuntarily.

	 	 	 

	“Transfer Notice”
	 	has the meaning ascribed to it in Article 10(b)(i).

	 	 	 

	“written” and “in
writing”
	 	include all modes of representing or reproducing
words in visible form.

	 	 	Words importing the singular number only include the plural number and vice
versa.
	 
	 	 	Words importing the masculine gender only include the feminine gender.
	 
	 	 	Words importing persons also include corporations.
	 
	2.	 	The business of the Company may be commenced as soon after incorporation as the Directors
shall see fit, notwithstanding that only part of the Shares may have been allotted.
	 
	3.	 	The Directors may pay, out of the capital or any other monies of the Company, all expenses
incurred in or about the formation and establishment of the Company including the expenses of
registration.

CERTIFICATES FOR SHARES

	4.	 	Certificates representing shares of the Company shall be in such form as shall be determined
by the
Directors and shall be issued to all persons who hold shares of the Company. Such
certificates may be
under Seal. All certificates for shares shall be consecutively numbered or otherwise
identified and shall
specify the shares to which they relate. The name and address of the person to whom the
shares
represented thereby are issued, with the number of shares and date of issue, shall be
entered in the
register of Members of the Company. All certificates surrendered to the Company for transfer
shall be
cancelled and no new certificate shall be issued until the former certificate for a like
number of shares
shall have been surrendered and cancelled. The Directors may authorise certificates to be
issued with
the seal and authorised signature(s) affixed by some method or system of mechanical process.
Each
certificate representing the Shares or any other securities issued in respect of the Shares
upon any stock
splits, stock dividend, recapitalisation, merger or similar event, shall be stamped or
otherwise
imprinted with a legend in substantially the following form (in addition to any legends
required by
agreement or by applicable securities laws):
	 
	 	 	THE SHARES REPRESENTED BY THIS SHARE CERTIFICATE ARE SUBJECT TO AND MAY BE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SHAREHOLDERS’ AGREEMENT DATED AS OF [•] 2009, AMONG THE HOLDER OF
THIS CERTIFICATE, CERTAIN OTHER SHAREHOLDERS OF THE COMPANY, MI ENERGY CORPORATION AND THE
COMPANY.
	 
	5.	 	Notwithstanding Article 4 of these Articles, if a share certificate be defaced, lost or
destroyed, it may
be renewed on payment of a fee of one dollar (US$1.00) or such less sum and on such terms
(if any) as
to evidence and indemnity and the payment of the expenses incurred by the Company in
investigating
evidence, as the Directors may prescribe.

ISSUE OF SHARES

	6.	(a)	 	Subject to the provisions, if any, in that behalf in the Memorandum and these Articles and to any
direction that may be given by the Company in general meeting and without prejudice to
any special rights previously conferred on the holders of existing shares, the
Directors may allot, issue, grant options over or otherwise dispose of shares of the
Company (including fractions of a

10

 

	 	 	 	share) with or without preferred, deferred or other special rights or restrictions, whether
in regard to dividend, voting, return of capital or otherwise and to such persons, at such
times and on such other terms as they think proper; provided, always that,
notwithstanding any provision to the contrary contained in these Articles, the Company shall
be precluded from issuing bearer shares, warrants, coupons or certificates.

	 	(b)	 	Preemption Rights. Each Member shall have the right to purchase a pro rata portion
(based on its
Shareholding Percentage) of New Securities that the Company may, from time to time propose to
sell and issue. The preemption rights granted under this Article 6(b) shall be subject to the
following provisions:

	 	(i)	 	In the event that the Company proposes to undertake an issuance of New
Securities, it shall give each Member written notice of its intention, describing the
type of New Securities, the price, and the general terms upon which the Company proposes
to issue the same. Each Member shall have thirty (30) days after receipt of such notice
(the “Preemption Cut-Off Date”) to agree to purchase up to its pro rata portion
(based on its Shareholding Percentage) of such New Securities at the price and upon the
terms specified in the notice by giving written notice to the Company and stating
therein the quantity of New Securities to be purchased. If a Member fails to exercise
the right to purchase its full pro rata portion (based on its Shareholding Percentage)
of the New Securities, each of the other participating Members may exercise an
additional right to purchase, on a pro rata basis (based on the proportion its
Shareholding Percentage bears to the aggregate Shareholding Percentage of the
participating Members), the New Securities not previously purchased.
	 
	 	(ii)	 	If some (but not all) of the Members do not elect to purchase their pro rata
portion of such New Securities by the Preemption Cut-Off Date, each of the
participating Members shall have the right, exercisable for a period of fifteen (15)
days after the Preemption Cut-Off Date (the last day of which shall be the
“Extended Preemption Cut-Off Date”), to purchase all or any portion of the New
Securities not purchased by the participating Members pursuant to Article 6(b)(i) pro
rata (based on the proportion its Shareholding Percentage bears to the aggregate
Shareholding Percentage of the other participating Members).
	 
	 	(iii)	 	If none of the Members have exercised their right to purchase the New
Securities by the end of the Preemption Cut-Off Date or the collective participating
Members have not offered to purchase all of the New Securities by the end of the
Extended Preemption Cut-Off Date (such unpurchased New Securities, the “Remaining
New Securities”), then the Company may sell all (but not less than all) of the
Remaining New Securities to a third Person.
	 
	 	(iv)	 	Regardless of whether the Members exercise their preemption rights granted under
this Article 6(b) by the Preemption Cut-Off Date or the Extended Preemption Cut-Off
Date (as the case may be), the Company shall have sixty (60) days after the Extended
Preemption Cut-Off Date to sell (or enter into an agreement pursuant to which the sale
of New Securities covered thereby shall be closed, if at all, within sixty (60) days
from the date of said agreement) the New Securities at a price and upon terms no more
favourable to the purchasers thereof than specified in the Company’s notice to the
Members, provided that such purchaser(s) shall agree to be bound by the terms
hereof and shall thereby become bound by the terms and conditions of these Articles. In
the event the Company has not sold the New Securities within such 60-day period (or
sold and issued New Securities in accordance with the foregoing within sixty (60) days
from the date of such agreement) the Company shall not thereunder issue or sell any New
Securities without first offering such New Securities to the Members in the manner
provided above. The completion of the sale of New Securities to the participating
Members and other purchasers shall occur simultaneously.

	 	(c)	 	Termination. The preemption rights granted under Article 6(b) shall expire immediately
upon

11

 

	 	 	 	the occurrence of a Qualified IPO or a Trade Sale.

SERIES A PREFERRED SHARES

	7.	 	The rights, preferences, privileges and restrictions granted to and imposed upon the
Series A Preferred Shares and the holders thereof are as follows:

	 	(a)	 	Voting Rights. Except as required by law or as provided to the contrary
herein, the holders of the
Series A Preferred Shares and the holders of the Ordinary Shares shall for voting purposes be
deemed to be members of the same class of share capital and shall vote together. Each Series A
Preferred Share shall have such number of votes equal to the number of Ordinary Shares into
which such Series A Preferred Shares is convertible at the time the vote is taken.
	 
	 	(b)	 	Dividends. The Series A Preferred Shares shall accrue dividends as
determined by the Board.
Notwithstanding the foregoing, the holders of the Series A Preferred Shares shall be entitled to
participate pro rata in any dividends paid on the Ordinary Shares on an as-if-converted basis, in
which case, the Series A Preferred Shares shall confer upon the holders thereof the right, in
priority to any rights of the holders of any other class of Shares (including the Ordinary Shares),
to receive such dividends.
	 
	 	(c)	 	Liquidation Preference.

	 	(i)	 	In the event of any liquidation, dissolution or winding up of the
Company, whether voluntary or involuntary, each holder of the Series A Preferred
Shares shall be entitled to receive, prior and in preference to any distribution
of any of the assets or funds of the Company to the holders of any other class
of shares of the Company ranked junior to the Series A Preferred Shares
(including the Ordinary Shares) by reason of such holder’s ownership thereof,
the greater of: (A) the sum of (x) the Series A Preferred Shares Purchase Price
(as adjusted for any share dividends, combinations, splits, recapitalizations or
the like on, of or affecting the Series A Preferred Shares), for each Series A
Preferred Share then held by such holder and (y) any and all declared but unpaid
dividends on each such Series A Preferred Shares and (B) such amount per Series
A Preferred Share as would have been payable had all Series A Preferred Shares
been converted into Ordinary Shares immediately prior to such liquidation,
dissolution or winding up (such amount payable, the “Liquidation
Preference”). If, upon the occurrence of such event, the assets and funds
thus distributed among the holders of the Series A Preferred Shares shall be
insufficient to permit the payment to such holders of the full Liquidation
Preference, then the entire assets and funds of the Company legally available
for distribution shall be distributed pro rata among the holders of the Series A
Preferred Shares in proportion to the Liquidation Preference each such holder is
otherwise entitled to receive. If any holder of Series A Preferred Shares shall
be deemed to have converted Series A Preferred Shares into Ordinary Shares
pursuant to this paragraph, then such holder shall not be entitled to receive
any distribution that would otherwise be made to holders of Series A Preferred
Shares that have not converted (or have not been deemed to have converted) into
Ordinary Shares.
	 
	 	(ii)	 	After the payment of the Liquidation Preference to the holders of
the Series A Preferred Shares, the remaining assets shall be distributed ratably
to the holders of the Ordinary Shares.
	 
	 	(iii)	 	Unless the holders of a majority of the Series A Preferred Shares
then outstanding shall elect or determine otherwise by written consent, a
consolidation or merger of the Company with or into any other Person in which the
holders of the Shares as of immediately prior to such merger or consolidation do
not continue to hold at least a fifty percent (50%) interest in the surviving
entity or a Trade Sale shall be deemed to be a liquidation for purposes of
payment of the Liquidation Preference and shall entitle the holders of the Series A

12

 

	 	 	 	Preferred Shares to receive in cash, securities or other property (with any non-cash
amounts being valued as provided in Article 7(c)(iv)) in the amounts specified in
Article 7(c)(i) and (ii).

	 	(iv)	 	Subject to the following provisions of this Article 7(c)(iv), the value of any
assets, securities or other property (other than cash) to be received by the Members
pursuant to Articles 7(c)(i), 7(c)(ii) and/or 7(c)(iii), shall be equal to the fair
market value thereof, as determined in good faith by the Board, if any (taking into
account, if applicable, any restrictions on the free marketability of such assets,
securities or other property, arising under applicable securities laws or otherwise,
other than restrictions arising solely by virtue of a Member’s status as an Affiliate of
the Company or the entity surviving or resulting from a change of control of the
Company), except that any securities to be distributed to Members of the Company in any
liquidation, dissolution or winding up of the Company, whether voluntary or involuntary,
or a change of control of the Company, shall be valued as follows.

	 	(A)	 	The method of valuation of securities not subject to investment
letter or other
similar restrictions on free marketability shall be as follows:

	 	(I)	 	if the securities are then traded on a
Recognised Stock Exchange (or
a similar national quotation system), then the value shall be
deemed
to be the average of the closing prices of the securities on such
exchange or system over the 30-day period ending three (3) days
prior to the distribution;
	 
	 	(II)	 	if the securities are then actively traded
over-the-counter, then the
value shall be deemed to be the average of the closing bid or sale
prices (whichever is applicable) over the 30-day period ending
three (3) days prior to the distribution; and
	 
	 	(III)	 	if there is no active public market for the
securities, then the value
shall be the fair market value thereof, as determined in good
faith by
the Board.

	 	(B)	 	The method of valuation of securities subject to investment letter or other
restrictions on free marketability shall be to make an appropriate discount
from the market value determined as above in subparagraphs (A)(I), (A)(II), or
(A)(III) of this Article 7(c)(iv) to reflect the approximate fair market value
thereof, as determined in good faith by the Board.

	 	(d)	 	Conversion of Series A Preferred Shares into Ordinary Shares. The Series A
Preferred Shares shall have conversion rights into Ordinary Shares as follows (the
“Conversion Rights”):

	 	(i)	 	Each Series A Preferred Share shall be convertible, at the option of the holder
thereof, at any time, into such number of fully paid Ordinary Shares as is determined
by dividing the Original Conversion Price applicable to such Series A Preferred Shares
by the Conversion Price applicable to the Series A Preferred Shares in effect at the
time of conversion. The initial Conversion Rate for each Series A Preferred Share shall
be 1.00 and the Conversion Price shall be subject to adjustment as described below.
	 
	 	(ii)	 	Each Series A Preferred Share shall automatically convert (or if automatic
conversion is not legally possible, then each holder thereof shall request the
conversion of its Series A Preferred Snares) into such number of fully paid Ordinary
Shares as is determined by the Conversion Rate applicable to the Series A Preferred
Shares at the time, (i) immediately prior to the consummation of a Qualified IPO, (ii)
on the date upon which the Company obtains the consent of the holders of at least
eighty-five percent (85%) of the then

13

 

	 	 	 	outstanding Series A Preferred Shares, voting as a single class, or (iii) forty-eight (48)
months after the date of the completion of the Company’s initial Series A Preferred Shares
financing.

	 	(iii)	 	Before any holder of Series A Preferred Shares shall be entitled to convert the same into
Ordinary Shares and to receive a certificate or certificates therefor, such holder shall
deliver one or more share transfer certificates duly executed by it together with any share
certificate(s) representing the Series A Preferred Shares to be converted, at the office of
the Company or of any transfer agent for the Series A Preferred Shares, and shall give written
notice to the Company at such office that such holder elects to
convert the same; provided, however, that in the event of an automatic conversion pursuant to Article
7(d)(ii), the outstanding Series A Preferred Shares shall be converted automatically without
any further action by the holders of such shares and whether or not duly executed share
transfer certificate(s) are delivered or the certificate(s) representing such shares are
surrendered to the Company or its transfer agent; and provided, further, that
the Company shall not be obligated to issue certificate(s) evidencing Ordinary Shares issuable
upon such automatic conversion unless the duly executed share transfer certificate(s) and
share certificate(s) evidencing such Series A Preferred Shares are either delivered to the
Company or its transfer agent as provided above, or the holder notifies the Company or its
transfer agent that such share certificate(s) have been lost, stolen or destroyed and executes
an agreement satisfactory to the Company to indemnify the Company from any loss incurred by it
in connection with such lost, stolen or destroyed share certificate(s). The Company shall, as
soon as practicable after such delivery, or after execution of such agreement in the case of
lost, stolen or destroyed certificate(s), issue and deliver at such office to such holder of
Series A Preferred Shares, a certificate or certificates for the number of Ordinary Shares to
which the holder shall be entitled and a check or a wire transfer payable to the holder in the
amount of any cash amounts payable as the result of a conversion into fractional Ordinary
Shares. Such conversion shall be deemed to have been made immediately prior to the close of
business on the date of such delivery of the share transfer certificates or such surrender of
the Series A Preferred Shares to be converted, or in the case of automatic conversion, on the
date of closing of the Qualified IPO, on the date of consent of the holders of 85% of the then
outstanding Series A Preferred Shares, voting as a single class, or on the date falling
forty-eight (48) months after the date of the completion of the Company’s initial Series A
Preferred Shares financing, and the Person or Persons entitled to receive the Ordinary Shares
issuable upon such conversion shall be treated for all purposes as the record holder or
holders of the Ordinary Shares on such date.
	 
	 	(iv)	 	No fractional Ordinary Shares shall be issued upon conversion of Series A Preferred Shares.
In lieu of any fractional shares to which the holder of any Series A Preferred Shares would
otherwise be entitled, the Company shall pay cash to such holder equal to such fraction
multiplied by the fair market value of one such Series A Preferred Share as determined in
good faith by the Board. Whether or not fractional shares are issuable upon such conversion
shall be determined on the basis of the total number of Series A Preferred Shares of each
holder at the time converting into Ordinary Shares and the aggregate number of Ordinary
Shares issuable upon such conversion.
	 
	 	(v)	 	The Conversion Price shall be subject to adjustment from time to time as follows:

	 	(A)	 	If the Company at any time sells or issues (or, pursuant to this Article
7(d)(v), is deemed to have issued) any unissued Ordinary Shares or preferred shares
or other Shares, warrants, options or other rights to purchase or otherwise acquire
Shares (on an as converted basis) of the Company or securities convertible into or
exchangeable for additional Shares of the Company, other than Excluded Shares
(collectively, the “Additional Securities”), for a consideration per share
less than the Conversion Price then in effect, such Conversion Price shall be
reduced, concurrently with such issue, to a price (calculated to the nearest

14

 

	 	 	 	cent) determined by multiplying such Conversion Price in effect on the date of and immediately
prior to such issue by a fraction, (1) the numerator of which shall be the sum of (A) the number of
Ordinary Shares issued and outstanding immediately prior to such issue, (B) the number of Ordinary
Shares issuable upon conversion of all Series A Preferred Shares issued and outstanding immediately
prior to such issue, (C) the number of Ordinary Shares issuable upon conversion or exercise of
convertible securities (other than the Series A Preferred Shares), options, and warrants
outstanding immediately prior to such issue (collectively, with
(A) and (B), the “Ordinary Shares Equivalents”),and (D)the number of Ordinary Shares which the aggregate consideration
received by the Company for the total number of Additional Securities so issued would purchase at
the Conversion Price in effect on the date of and immediately prior to such issue; and (2) the
denominator of which shall be the sum of (A) the Ordinary Shares Equivalents, and (B) the number of
such Additional Securities so issued.

	 	(I)	 	For the purposes of any adjustment of any Conversion Price
pursuant to this Article 7(d)(v)(A), the consideration received by the Company for
the issue of any Additional Securities shall be determined as follows:

	 	(a)	 	In the case of the issuance of Ordinary Shares for cash, the
consideration shall be deemed to be the amount of cash paid
therefor after deducting any offering discounts, commissions,
compensation or expenses paid or incurred by the Company in
connection with the issuance and sale thereof.
	 
	 	(b)	 	In the case of the issuance of Ordinary Shares for a
consideration in whole or in part other than cash, the
consideration other than cash shall be deemed to be the fair
market value thereof as determined in good faith by the Board.
	 
	 	(c)	 	In the case of the issuance of (i) options to purchase or rights
to subscribe for or purchase Ordinary Shares (other than
Excluded Shares), (ii) securities by their terms convertible into
or exchangeable for Ordinary Shares (other than Excluded
Shares), or (iii) options to purchase or rights to subscribe for or
purchase such convertible or exchangeable securities:

	 	(i)	 	the aggregate maximum number of Ordinary Shares
issuable upon exercise of such options to purchase or rights to subscribe
for Ordinary Shares shall be deemed to have been issued at the time such
options or rights were issued and for a consideration equal to the
consideration, if any, received or to be received by the Company upon the
issuance of such options or rights plus the additional minimum
consideration, if any, received or to be received by the Company for the
exercise of such options or rights for the Ordinary Shares covered
thereby;
	 
	 	(ii)	 	the aggregate maximum number of Ordinary Shares
deliverable upon conversion of or in exchange for any such convertible or
exchangeable securities, or upon the exercise of options to purchase or
rights to subscribe for such convertible or exchangeable
securities and

15

 

	 	 	 	subsequent conversion or exchange thereof, shall be deemed to
have been issued at the time such securities were issued or
such options or rights were issued and for a consideration
equal to the consideration, if any, received or to be received
by the Company for any such securities and related options or
rights (excluding any cash received on account of accrued
interest or accrued dividends), plus the additional minimum
consideration, if any, received or to be received by the
Company upon the conversion or exchange of such securities or
the exercise of any related options or rights.

	 	(iii)	 	on any change in the number of
Ordinary Shares deliverable upon exercise of any such options or
rights, or conversion of or exchange for such convertible or
exchangeable securities, or on any change in the minimum
consideration for such options, rights or securities, other than a
change resulting from the antidilution provisions of such options,
rights or securities, then, upon such change becoming effective,
such Conversion Price shall forthwith be readjusted to such
Conversion Price as would have been obtained had such change been
in effect upon the original issuance of such options, rights or
securities; and
	 
	 	(iv)	 	on the expiration of any such options
or rights, the termination of any such rights to convert or
exchange, or the expiration of any options or rights related to
such convertible or exchangeable securities, or upon any
redemption or repurchase of any such options, rights or
securities, such Conversion Price shall forthwith be readjusted to
such Conversion Price as would have been obtained had the
adjustment made upon the issuance of such options, rights,
convertible or exchangeable securities, or options or rights
related to such convertible or exchangeable securities, as the
case may be, been made upon the basis of the issuance of only the
number of Ordinary Shares actually issued upon the exercise of
such options or rights, upon the conversion or exchange of such
convertible or exchangeable securities, or upon the exercise of
the options or rights related to such convertible or exchangeable
securities, as the case may be.

	 	(II)	 	All outstanding Excluded Shares (including shares issuable upon
conversion of the Series A Preferred Shares) shall be deemed to be
outstanding for all purposes of the computations of this Article 7(d)(v)(A).

	 	(B)	 	If the number of Ordinary Shares outstanding at any time is increased by a share dividend
payable in Ordinary Shares or by a subdivision or split-up of Ordinary Shares, then, on the
date such payment is made or such change is effective, the Conversion Price applicable to the
Series A Preferred Shares shall be appropriately decreased so that the number of Ordinary
Shares issuable on conversion of any Series A Preferred Shares shall be increased in
proportion to such increase of outstanding shares.

16

 

	 	(C)	 	If the number of Ordinary Shares outstanding at any time is decreased by a
combination of the outstanding Ordinary Shares, then, on the effective date of
such combination, the Conversion Price applicable to the Series A Preferred
Shares shall be appropriately increased so that the number of Ordinary Shares
issuable on conversion of any Series A Preferred Shares shall be decreased in
proportion to such decrease in outstanding shares.
	 
	 	(D)	 	Subject to the provisions of Article 7(c), at any time, if there shall
occur any
reorganization, recapitalization or any reclassification of the Shares (other
than as a result of a share dividend or subdivision, split-up or combination of
shares as provided above), or the consolidation or merger of the Company with
or into another Person (other than a consolidation or merger in which the
Company is the continuing entity and which does not result in any change in
the Ordinary Shares), the Series A Preferred Shares shall, after such
reorganization, recapitalization, reclassification, consolidation or merger, be
convertible (in lieu of the Ordinary Shares) into the kind and number of shares
or other securities or property of the Company or otherwise to which such
holder would have been entitled if immediately prior to such reorganization,
recapitalization, reclassification, consolidation or merger, such holder had
converted its Series A Preferred Shares into Ordinary Shares. The provisions
of this Article shall similarly apply to successive reorganizations,
recapitalizations, reclassifications, consolidations or mergers.
	 
	 	(E)	 	In the event that the Company at any time shall declare a cash dividend upon
its Ordinary Shares payable otherwise than out of retained earnings or shall
distribute to holders of its Ordinary Shares share capital (other than Ordinary
Shares), shares or other securities of other Persons, evidences of indebtedness
issued by the Company or other Persons, assets (excluding cash dividends) or
options or rights (excluding options to purchase and rights to subscribe for
Ordinary Shares or other securities of the Company convertible into or
exchangeable for Ordinary Shares), then, in each such event, the holders of the
Series A Preferred Shares shall, concurrent with the distribution to holders of
the Ordinary Shares, receive a like distribution based upon the number of
Ordinary Shares into which the Series A Preferred Shares are then convertible.
	 
	 	(F)	 	All calculations under this Article 7(d)(v) shall be made to the nearest cent or
to the nearest one hundredth (1/100) of a share, as the case may be.

	 	(vi)	 	No adjustment in a Conversion Price need be made if such adjustment would result in a change
in such Conversion Price of less than US$0.01. Any adjustment of less than US$0.01 which is
not made shall be carried forward and shall be made at the time of and together with any
subsequent adjustment which, on a cumulative basis, amounts to an adjustment of US$0.01 or
more in a Conversion Price.
	 
	 	(vii)	 	The Company will not through any reorganization, recapitalization, reclassification,
transfer of assets, consolidation, merger, dissolution, issue or sale of securities, or any
other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but shall at all times in good
faith assist in the carrying out of all the provisions of this Article 7(d) and in the taking
of all such action as may be necessary or appropriate in order to protect the Conversion
Rights of the holders of the Series A Preferred Shares against impairment. This provision
shall not restrict the Company’s right to amend these provisions with the requisite Member
consent in accordance with these Articles.
	 
	 	(viii)	 	Upon the occurrence of each adjustment or readjustment of the Conversion Rate

17

 

	 	 	 	applicable to the Series A Preferred Shares pursuant to this Article 7(d), the
Company at its expense shall promptly compute such adjustment or readjustment in
accordance with the terms hereof and prepare and furnish to each affected holder
of Series A Preferred Shares a certificate setting forth such adjustment or
readjustment and showing in detail the facts upon which such adjustment or
readjustment is based. The Company shall, upon written request of any holder of
Series A Preferred Shares furnish or cause to be furnished to such holder a like
certificate setting forth (i) all such adjustments and readjustments, (ii) the
Conversion Rates applicable to each Series A Preferred Share at the time in
effect, and (iii) the number of Ordinary Shares and the amount, if any, of other
property which at the time would be received upon the conversion of such
holder’s Series A Preferred Shares.

	 	(ix)	 	The Company shall at all times reserve and keep available out of
its authorized but unissued Ordinary Shares solely for the purpose of effecting
the conversion of the Series A Preferred Shares such number of its Ordinary
Shares as shall from time to time be sufficient to effect the conversion of all
outstanding Series A Preferred Shares; and if at any time the number of
authorized but unissued Ordinary Shares shall not be sufficient to effect the
conversion of all then outstanding Series A Preferred Shares, the Company will
take such corporate action as may, in the opinion of its counsel, be necessary
to increase its authorized but unissued Ordinary Shares to such number of shares
as shall be sufficient for such purpose.
	 
	 	(x)	 	No Series A Preferred Shares that have been converted into
Ordinary Shares after the original issuance thereof shall ever again be reissued
and all such shares so converted shall upon such conversion cease to be a part
of the authorized but unissued shares of the Company.

ORDINARY SHARES

	8.	 	The Ordinary Shares shall have the following rights:

	 	(a)	 	Voting Rights. Each holder of Ordinary Shares (in person or by
telephone or by proxy or
corporate representative) shall have the right to one vote on a show of hands and the holder of
each Ordinary Share shall have the right to one vote on a poll for each Ordinary Share held, and
shall be entitled to notice of any general meeting in accordance with these Articles, and shall be
entitled to vote upon such matters and in such manner as may be provided for in these Articles.
	 
	 	(b)	 	Dividends. Subject to Article 7(b), the holders of the Ordinary Shares
shall, subject to the Statute
and these Articles, be entitled to receive, when, as and if declared by the Directors, out of any
assets of the Company legally available therefor, such dividends as may be declared from time to
time by the Directors in accordance with Article 7(b).
	 
	 	(c)	 	Liquidation. In the event of any liquidation, dissolution or winding up
of the Company, whether
voluntary or involuntary, the assets of the Company shall be distributed as provided in Article
7(c).

REGISTER OF MEMBERS

	9.	 	The Company shall maintain a register of its Members and every person whose name is entered
as a
Member in the register of Members shall be entitled without payment to receive within two
(2) months
after allotment or lodgement of transfer (or within such other period as the conditions of
issue shall
provide) one certificate for all his shares or several certificates each for one or more of
his shares upon
payment of fifty cents (US$0.50) for every certificate after the first or such less sum as
the Directors
shall from time to time determine, provided that in respect of a share or shares
held jointly by several
persons the Company shall not be bound to issue more than one certificate and delivery of a
certificate
for a share to one of the several joint holders shall be sufficient delivery to all such
holders.

TRANSFER OF SHARES

18

 

	10.	 	Restrictions on Transferability.

	 	(a)	 	Transfer Restrictions.

	 	(i)	 	No Member may Transfer any Shares held by such Member except in
accordance with the provisions of these Articles.
	 
	 	(ii)	 	Prior to the date falling one (1) year after the completion of the
initial Series A financing, no Member shall Transfer any of its Shares;
provided, however, that:

	 	(A)	 	TPG and its Affiliates may Transfer Shares to one (1) or more limited
partners of TPG Star, L.P. or its Affiliates for a minimum of
US$10,000,000 per Person, so long as, after giving effect to all such
Transfers, TPG and its Affiliates hold Shares having a Shareholding
Percentage of at least six percent (6%),
	 
	 	(B)	 	Standard Bank and its Affiliates may
Transfer Shares to one (1) or more
Person so long as, after giving effect to such Transfer,
Standard Bank
and its Affiliates hold Shares having a Shareholding Percentage of at
least one percent (1% ), AND
	 
	 	(C)	 	Any Transfer effected by any Member in
accordance with the Article 10 (b), (c) and (e) of these Articles, Clause 7 or 8.2 of the SPA
or the Standard Bank Equity Agreements shall be permitted.

	 	(iii)	 	On and after the date falling one (1) year after the completion
of the initial Series A financing, no Member or any Affiliate of such Member
shall Transfer any of its Shares; provided, however, that
subject to Clause 13.3 of the Shareholders’ Agreement, any Transfer effected by
any Member in accordance with the Article 10 (b), (c) and (e) of these Articles,
Clause 7 or 8.2 of the SPA or the Standard Bank Equity Agreements shall be
permitted.
	 
	 	(iv)	 	At any time but subject to Clause 13.3 of the Shareholders’ Agreement,
FEEL may Transfer (i) Shares having an aggregate Shareholding Percentage of up
to five percent (5%) to persons who are bona fide directors, officers or
employees of the Company or MIE as of the date hereof, but any such Transfer of
Shares to any one director, officer or employee shall not result in any one such
transferee holding an aggregate Shareholding Percentage exceeding two percent
(1%).

	 	(b)	 	Right of First Refusal.

	 	(i)	 	Except for a Transfer in accordance with Article 10(a)(ii), (iii)
or (iv), 10(c) or 10(e) of these Articles, Clause 7 or 8.2 of the Shareholders’
Agreement, or the Standard Bank Equity Agreements if at any time, any Member
(the “Offering Member”) desires to Transfer all or part of its Shares
(the “Offered Shares”) to a Prospective Transferee, the other Members
(the “Non-Offering Members”) shall have the right of first refusal to
purchase the Offered Shares upon the terms and subject to the conditions
hereinafter provided. Prior to any Proposed Transfer of Offered Shares, the
Offering Member shall deliver to each Non-Offering Member (with a copy to the
Company) a written irrevocable bona fide offer to sell the Offered Shares to the
Non-Offering Members stating the number of Shares to be sold, the price and
terms thereof (which shall not include any warranties or indemnities (other than
capacity and authority) from the transferee) and the identity of the Prospective
Transferee (a “Transfer Notice”).

19

 

	 	(ii)	 	Each Non-Offering Member shall have a period of thirty (30) days after receipt
of a Transfer Notice within which to elect to purchase its pro rata share (based on the
proportion its Shareholding Percentage bears to the aggregate Shareholding Percentage of all
Non-Offering Members) of any or all such Offered Shares on the terms offered to the
Prospective Transferee in the Transfer Notice, which election shall be made by an
irrevocable written notice delivered by each electing Non-Offering Member to the Offering
Member (with a copy to the Company and each of the other Non-Offering Members). The last day
of such 30-day period is hereinafter referred to as the “Cut-Off Date”. Any new
terms, conditions or price offered by the Offering Member to any Non-Offering Member during
such 30-day period shall be offered to each Non-Offering Member and shall be set forth in a
new Transfer Notice to each such Non-Offering Member, which new Transfer Notice shall
trigger a new 30-day period as provided above. Any election to purchase the Offered Shares
must be in accordance with the terms of the Transfer Notice then in effect, and otherwise
must be unconditional (except that such purchase may be subject to the prior receipt of
statutory or regulatory approvals necessary to complete such purchase). Non-Offering Members
who elect to purchase the Offered Shares pursuant to this Article 10(b)(ii) are hereinafter
referred to individually as an “Electing Offeree” and collectively as the
“Electing Offerees‘”.
	 
	 	(iii)	 	If some, but not all, of the Non-Offering Members do not elect to purchase their pro
rata share of the Offered Shares by the Cut-Off Date, each of the Electing Offerees shall
have the right, exercisable for a period of fifteen (15) days after the Cut-Off Date (the
last day of which shall be the “Extended Cut-Off Date”), to purchase all or any
portion of the Offered Shares not purchased by the Electing Offerees pursuant to Article
10(b)(ii) pro rata (based on the proportion its Shareholding Percentage bears to the
aggregate Shareholding Percentage of the other Electing Offerees).
	 
	 	(iv)	 	The consideration for such Offered Shares shall be paid in full in cash, or in such
other form as may be agreed between the Offering Member and the Electing Offerees.
	 
	 	(v)	 	The completion of each such purchase shall take place on the thirtieth (30th) day after the
Cut-Off Date or Extended Cut Off Date (as the case may be), or if such day is not a Business
Day, then on the next such Business Day (the “Scheduled Completion Date”). The
Scheduled Completion Date may be amended upon the mutual agreement of the Offering Member and
the Electing Offerees, and in any case shall be extended to the extent necessary in order to
comply with applicable laws and regulations (including obtaining any necessary governmental
approvals for the Transfer of such Offered Shares). On or before the relevant Scheduled
Completion Date, the Offering Member shall surrender the certificate or certificates
representing the Offered Shares to be purchased on such Scheduled Completion Date (or, if
such Offering Member alleges that such certificate has been lost, stolen or destroyed, a lost
certificate affidavit and agreement reasonably acceptable to the Company to indemnify the
Company against any claim that may be made against the Company on account of the alleged
loss, theft or destruction of such certificate) to the Electing Offerees, against payment in
full of the consideration for such Offered Shares in accordance with the provisions in this
Article 10 (b).
	 
	 	(vi)	 	Upon any election of the right to purchase such Offered Shares by an Electing
Offeree, the Offering Member and such Electing Offeree shall use their reasonable best
efforts to secure any approvals required in connection therewith.
	 
	 	(vii)	 	Notwithstanding the foregoing, if the Non-Offering Members have not exercised their
right to purchase all the Offered Shares by the end of the Cut-Off Date or the collective
Electing Offerees have not offered to purchase all of the Offered Shares by the end of the
Extended Cut-Off Date, then the Non-Offering Members shall be deemed to have forfeited any
right to purchase such Offered Shares, and the Offering Members shall be

20

 

	 	 	 	free to sell all, but not less than all, of the Offered Shares to the
Prospective Transferee substantially on the terms and conditions set forth in the
Proposed Transfer Notice not later than the sixtieth (60th) day after the Cut-Off
Date or the Extended Cut-Off Date, as the case may be.

	 	(viii)	 	If the Electing Offeree(s) fail(s) to complete the purchase of all of the
Offered Shares on the Scheduled Completion Date in accordance with the terms of these
Articles and the applicable Transfer Notice and such failure is not remedied within
seven (7) days of the Scheduled Completion Date, then the Offering Member may sell all
(but not less than all) of the Offered Shares to the Prospective Transferee not later
than the sixtieth (60th) day after the Scheduled Completion Date. If the necessary
governmental approvals to an Electing Offeree’s purchase of any Offered Shares are not
obtained within a reasonable period of time after the end of the 60-day period
following the Cut-Off Date or the Extended Cut-Off Date, as the case may be, such
Offered Shares must be re-offered to the Non-Offering Members (other than the Electing
Offeree) as Offered Shares under this Article 10(b).
	 
	 	(ix)	 	Any sale to a Prospective Transferee pursuant to either Article 10(b)(vii) or
Article 10(b)(viii) shall be on terms and conditions (including, without limitation,
the price per Share) no more favourable to such Prospective Transferee than those set
forth in the applicable Transfer Notice received by the Non-Offering Members and the
Offering Member must sell all of the Offered Shares and not some only.
	 
	 	(x)	 	If all of the Offered Shares are not sold to any Person within the 60-day
period specified in Article 10(b)(vii) or Article 10(b)(viii), then the rights of the
other Members under this Article 10(b) shall be fully restored and reinstated as if
such offer had never been made and the Offering Member must again follow the
procedures set forth in this Article 10(b) prior to the sale of any of its Shares to
any Person, except for Transfers otherwise permitted by these Articles.

	 	(c)	 	Tag-Along Rights

	 	(i)	 	Except for a Transfer pursuant to Article 10 (a) (ii) (iii) (iv) and 10(e) of
these Articles or Clause 7 or 8.2 of the SPA, and subject always to Article 10(b), if
at any time FEEL (“Tag-Along Seller”) proposes to Transfer Shares to a
Prospective Transferee that, when aggregated with all other Shares Transferred by such
Tag-Along Seller and its Affiliates, would result in such Tag-Along Seller owning less
than fifty percent (50%) of the then outstanding Shares, such Tag Along Seller shall
promptly give written notice to the Company (“Tag-Along Notice”) and each of
the other Members at least forty-five (45) days prior to the completion of such
Transfer and shall cause the Prospective Transferee to make an offer for all of the
Shares of such other Members on the same terms and conditions of the Proposed Transfer
(provided that TPG shall only provide customary representations of title and capacity
excluding any representations or warranties with respect to the business, assets or
liabilities or financial condition of the Company) (the “Tag-Along Offer”),
except that the price per Share pursuant to the Tag-Along Offer shall be the Tag-Along
Offer Purchase Price. The Tag-Along Notice shall describe in reasonable detail the
Proposed Transfer including, without limitation, the class and number of Shares to be
sold, the price and terms thereof and the identity of the Prospective Transferee and
attach a copy of the Tag-Along Offer. Any subsequent Transfers of Shares by persons
other than TPG shall be subject to the same tag-along right under this Article 10(c).
	 
	 	(ii)	 	Each non-Transferring Member shall have a period of twenty (20) days after
receipt of a Tag-Along Notice within which to accept the Tag-Along Offer, which
acceptance shall be made by an irrevocable written notice delivered by each electing
non-Transferring Member (each, a “Participant”) to the Tag-Along Seller and the
Prospective Transferee (with a copy to the Company and each of the other
non-Transferring Members). No

21

 

	 	 	 	holders of Series A Preferred Shares shall be entitled to sell Series A
Preferred Shares pursuant to this Article 10(c), but shall be permitted to convert
or exercise its applicable portion of Series A Preferred Shares for Ordinary Shares
concurrently with, and subject to, the consummation of the Proposed Transfer, in
which case each of the other Members shall take all such steps necessary to be taken
by each of them respectively in order to give effect to such conversion or exercise.

	 	(iii)	 	Each Participant shall effect its participation in the Transfer by delivering
to the Tag-Along Seller (to hold in trust as agent for such Participant), at least three
(3) Business Days prior to the date scheduled for such Transfer as set forth in the
Tag-Along Notice, one (1) or more share transfer certificate(s) duly executed by the
Participant, together with any share certificates, representing the Shares which such
Participant is entitled to Transfer in accordance with Article 10(c)(ii). Such
certificate or certificates or other instruments, as applicable, shall be delivered by
the Tag-Along Seller to the Proposed Transferee on the date scheduled for such Transfer
in consummation of the Transfer pursuant to the terms and conditions specified in the
Transfer Notice and such Proposed Transferee shall remit to each such Participant the
portion of the sale proceeds to which such Participant is entitled by reason of its
participation in such sale. The completion of the Transfer by the Tag-Along Seller and
the Transfer by each Participant shall occur simultaneously. The Tag-Along Seller and
the Participants shall be responsible for their respective pro rata portions of the
aggregate transaction costs and expenses incurred by the Tag-Along Seller and the
Participants in connection with such Transfers and the Tag-Along Seller and the
Participants shall reimburse the other to the extent required to give effect to such
expense allocation. For purposes of this Article 10(c)(iii), “pro rata portion”
shall mean for each Participant a fraction, the numerator of which is the number of
Shares to be Transferred by such Participant pursuant to this Article 10(c) and the
denominator of which is the total number of Shares to be Transferred pursuant to this
Article 10(c).
	 
	 	(iv)	 	The non-exercise of the rights of any of the non-Transferring Members to
participate in one (1) or more Transfers of Shares under this Article 10(c) shall not
adversely affect its right to participate in subsequent Transfers of Shares subject to
this Article 10(c).
	 
	 	(v)	 	The Tag-Along Seller shall not be permitted to Transfer Shares in circumstances
where Article 10(c) is applicable unless the sale of Shares by Participants exercising
their rights under this Article 10(c) is effected simultaneously, and any attempted
Transfer by the Tag-Along Seller in violation hereof shall be null and void.
	 
	 	(vi)	 	Notwithstanding anything contained in this Article 10(c) to the contrary, there
shall be no liability on the part of the Tag-Along Seller to any other Member in the
event no Shares are sold (by any of the Tag-Along Seller or any Participant) to the
Proposed Transferee even if the provisions of this Article 10(c) have been triggered.

	 	(d)	 	Authorization; Effect of Failure to Comply.

	 	(i)	 	The Members shall cause the Company to take any and all steps for and on
behalf of a transferring Member to give effect to the Transfer of Shares pursuant to
this Article 10.
	 
	 	(ii)	 	Any Proposed Transfer not made in compliance with the requirements of these
Articles shall be null and void ab initio, shall not be recorded on the books of the
Company or its transfer agent and shall not be recognized by the Company.
	 
	 	(iii)	 	If any Member becomes obligated to sell any Offered Shares to any Exercising
Offeree under these Articles and fails to deliver a share transfer certificate duly
executed by the Member, together with any share certificates, representing such
purchased Offered Shares and Transfer the Offered Shares in accordance with the terms
of these Articles,

22

 

	 	 	 	such Exercising Offeree may, at its option, in addition to all other remedies
it may have, send to such Member the purchase price for such Offered Shares as
is herein specified and request the Company to redeem and cancel on its books
the relevant Shares to be sold and issue the relevant Shares to such
Exercising Offeree.

	 	(e)	 	Exempt Transfers.

	 	(i)	 	Notwithstanding anything to the contrary herein, the foregoing
provisions of this Article 10 shall not apply to a Transfer by a Member of all
or part of its Shares to an Affiliate provided, however, that
any such Transfer shall be in accordance with each of the following terms:

	 	(A)	 	such Member shall provide written notice of
such Transfer to each other
Member;
	 
	 	(B)	 	the transferee to whom the Member is to
Transfer the Shares is a
Non-Competing Person; and
	 
	 	(C)	 	if any such transferee Affiliate shall
cease to be an Affiliate of such
Member, any Shares held by such transferee shall be promptly
retransferred to such Member or transferred to another of such
Member’s Affiliates.

	 	(ii)	 	Notwithstanding anything to the contrary herein, the provisions of this
Article 10 shall not apply to (i) the sale of Shares pursuant to a Qualified
IPO or any Transfer after a Qualified IPO; and (ii) the creation of Encumbrance
over the Shares pursuant to the Standard Bank Facility.

	11.	 	The instrument of transfer of any share shall be in writing and shall be executed by or on behalf of the
transferor and the transferor shall be deemed to remain the holder of a share until the name of the
transferee is entered in the register in respect thereof.
	 
	12.	 	Subject to Article 10(d)(i), the Directors may in their absolute discretion decline to register any
Transfer of shares without assigning any reason therefor. If the Directors refuse to register a Transfer
they shall notify the transferee within two (2) months of such refusal.
	 
	13.	 	The registration of Transfers may be suspended at such time and for such periods as the Directors may
from time to time determine, provided, always that such registration shall not be suspended for more
than forty-five (45) days in any year.
	 
	14.	 	Each Member shall agree to customary market stand-off or lock-up restrictions required by the
managing underwriter of the Qualified IPO.

REDEEMABLE SHARES

	15.	 	(a) Subject to the provisions of the Statute and the Memorandum, shares may be issued on the terms
that they are, or at the option of the Company or the holder are, to be redeemed on
such terms and in such manner as the Company, before the issue of the shares, may by
Special Resolution determine.

	 	(b)	 	Subject to the provisions of the Statute and the Memorandum, the Company may
purchase its own shares (including fractions of a share), including any redeemable
shares, provided that the manner of purchase has first been authorised by the
Company in general meeting and may make payment therefor in any manner authorised by
the Statute, including out of capital.

CLASS RIGHTS AND VARIATION OF RIGHTS OF SHARES

23

 

	16.	(a) 	 	Class Rights. Whenever the capital of the Company is divided into different
Classes, the rights
attached to any such Class may (unless otherwise provided by the terms of issue of
the Shares of that Class) only be materially and adversely varied or abrogated with
the consent in writing of the holders of not less than a majority of the issued
shares of the relevant Class, or with the sanction of a resolution passed at a
separate meeting of the holders of the shares of such Class, by a majority of the
votes cast at such a meeting, but not otherwise, provided that the rights
attached to the Series A Preferred Shares may only be materially and adversely varied
or abrogated with the consent in writing of the holders of no less than sixty-six and
two-thirds percent (662/3%) of the issued Series A Preferred Shares or
with the sanction of a resolution passed at a separate meeting of the of the holders
of the Series A Preferred Shares by sixty-six and two-thirds percent
(662/3%) of the votes cast at such meeting . To every such separate
meeting all the provisions of these Articles relating to general meetings of the
Company or to the proceedings thereat shall, mutatis mutandis, apply, except that the
necessary quorum shall be one or more persons at least holding or representing by
proxy a majority in nominal or par value amount of the issued shares of the relevant
Class (but so that if at any adjourned meeting of such holders a quorum as above
defined is not present, those Members who are present shall form a quorum) and that,
subject to the terms of issue of the shares of that Class, every Member of the Class
shall on a poll have one vote for each share of the Class held by him.

	 	(b)	 	For the purposes of convening and holding a meeting pursuant to this Article,
the Directors may
treat all the Classes or any two or more Classes as forming one Class if they consider
that all such
Classes would be affected in the same way by the proposals under consideration but in
any other
case shall treat them as separate Classes.
	 
	 	(c)	 	The rights conferred upon the holders of the Series A Preferred Shares shall be
deemed to be
materially adversely varied or abrogated by the following acts of the Company:

	 	(i)	 	any change to the name of the Company;
	 
	 	(ii)	 	any amendment to the Memorandum and these Articles or other
constitutive documents of the Company, to the extent such amendment would
adversely affect the rights already granted to the holders of the Series A
Preferred Shares;
	 
	 	(iii)	 	any liquidation, winding up, dissolution, receivership,
bankruptcy or any like scheme or arrangement of the Company; or
	 
	 	(iv)	 	any split, subdivision, conversion, reclassification or
modification of any type of outstanding shares or securities of the Company to
the extent it would impair or reduce the rights of the holders of Series A
Preferred Shares.

COMMISSION ON SALE OF SHARES

	17.	 	The Company may in so far as the Statute from time to time permits pay a commission to any person in
consideration of his subscribing or agreeing to subscribe whether absolutely or conditionally for any
shares of the Company. Such commissions may be satisfied by the payment of cash or the lodgement of
fully or partly paid-up shares or partly in one way and partly in the other. The Company may also on
any issue of shares pay such brokerage as may be lawful.
	 
	18.	 	[Reserved].

LIEN ON SHARES

	19.	 	The Company shall have a first and paramount lien and charge on all shares (whether fully paid-up or
not) registered in the name of a Member (whether solely or jointly with others) for all debts, liabilities
or engagements to or with the Company (whether presently payable or not) by such Member or his

24

 

	 	 	estate, either alone or jointly with any other person, whether a Member or not, but the
Directors may at any time declare any share to be wholly or in part exempt from the
provisions of this Article. The registration of a Transfer of any such share shall operate
as a waiver of the Company’s lien (if any) thereon. The Company’s lien (if any) on a share
shall extend to all dividends or other monies payable in respect thereof.

	20.	 	The Company may sell, in such manner as the Directors think fit, any shares on which the
Company
has a lien, but no sale shall be made unless a sum in respect of which the lien exists is presently
payable, nor until the expiration of fourteen (14) days after a notice in writing stating and demanding
payment of such part of the amount in respect of which the lien exists as is presently payable, has been
given to the registered holder or holders for the time being of the share, or the person, of which the
Company has notice, entitled thereto by reason of his death or bankruptcy.
	 
	21.	 	To give effect to any such sale the Directors may authorise some person to Transfer the
shares sold to
the purchaser thereof. The purchaser shall be registered as the holder of the shares
comprised in any
such Transfer, and he shall not be bound to see to the application of the purchase money,
nor shall his
title to the shares be affected by any irregularity or invalidity in the proceedings in
reference to the sale.
	 
	22.	 	The proceeds of such sale shall be received by the Company and applied in payment of such
part of the
amount in respect of which the lien exists as is presently payable and the residue, if any,
shall (subject
to a like lien for sums not presently payable as existed upon the shares before the sale) be
paid to the
person entitled to the shares at the date of the sale.

CALL ON SHARES

	23.	(a)	 	The Directors may from time to time make calls upon the Members in respect of any monies
unpaid on their shares (whether on account of the nominal value of the shares or by
way of premium or otherwise) and not by the conditions of allotment thereof made
payable at fixed terms, provided that no call shall be payable at less than
one month from the date fixed for the payment of the last preceding call, and each
Member shall (subject to receiving at least fourteen (14) days notice specifying the
time or times of payment) pay to the Company at the time or times so specified the
amount called on the shares. A call may be revoked or postponed as the Directors may
determine. A call may be made payable by installments.

	 	(b)	 	A call shall be deemed to have been made at the time when the resolution of the
Directors authorising such call was passed.
	 
	 	(c)	 	The joint holders of a share shall be jointly and severally liable to pay all calls in
respect thereof.

	24.	 	If a sum called in respect of a share is not paid before or on a day appointed for payment thereof, the
persons from whom the sum is due shall pay interest on the sum from the day appointed for payment
thereof to the time of actual payment at such rate not exceeding ten per cent (10%) per annum as the
Directors may determine, but the Directors shall be at liberty to waive payment of such interest either
wholly or in part.
	 
	25.	 	Any sum which by the terms of issue of a share becomes payable on allotment or at any fixed date,
whether on account of the nominal value of the share or by way of premium or otherwise, shall for the
purposes of these Articles be deemed to be a call duly made, notified and payable on the date on which
by the terms of issue the same becomes payable, and in the case of non-payment all the relevant
provisions of these Articles as to payment of interest forfeiture or otherwise shall apply as if such sum
had become payable by virtue of a call duly made and notified.
	 
	26.	 	The Directors may, on the issue of shares, differentiate between the holders as to the amount of calls or
interest to be paid and the times of payment.

	 
	27.	(a) 	 	The Directors may, if they think fit, receive from any Member willing to advance the same, all or

25

 

	 	 	 	any part of the monies uncalled and unpaid upon any shares held by him, and upon all
or any of the monies so advanced may (until the same would but for such advances,
become payable) pay interest at such rate not exceeding (unless the Company in general
meeting shall otherwise direct) seven per cent per annum, as may be agreed upon
between the Directors and the Member paying such sum in advance.

	 	(b)	 	No such sum paid in advance of calls shall entitle the Member paying such sum
to any portion of a dividend declared in respect of any period prior to the date upon
which such sum would, but for such payment, become presently payable.

FORFEITURE OF SHARES

	28.	(a)	 	If a Member fails to pay any call or installment of a call or to make any payment required by the
terms of issue on the day appointed for payment thereof, the Directors may, at any
time thereafter during such time as any part of the call, installment or payment
remains unpaid, give notice requiring payment of so much of the call, installment or
payment as is unpaid, together with any interest which may have accrued and all
expenses that have been incurred by the Company by reason of such non-payment. Such
notice shall name a day (not earlier than the expiration of fourteen (14) days from
the date of giving of the notice) on or before which the payment required by the
notice is to be made, and shall state that, in the event of non-payment at or before
the time appointed the shares in respect of which such notice was given will be liable
to be forfeited.

	 	(b)	 	If the requirements of any such notice as aforesaid are not complied with, any share in respect of
which the notice has been given may at any time thereafter, before the payment
required by the
notice has been made, be forfeited by a resolution of the Directors to that effect.
Such forfeiture
shall include all dividends declared in respect of the forfeited share and not
actually paid before
the forfeiture.
	 
	 	(c)	 	A forfeited share may be sold or otherwise disposed of on such terms and in
such manner as the
Directors think fit and at any time before a sale or disposition the forfeiture may be
cancelled on
such terms as the Directors think fit.

	29.	 	A person whose shares have been forfeited shall cease to be a Member in respect of the
forfeited shares,
but shall, notwithstanding, remain liable to pay to the Company all monies which, at the
date of
forfeiture were payable by him to the Company in respect of the shares together with
interest thereon,
but his liability shall cease if and when the Company shall have received payment in full of
all monies
whenever payable in respect of the shares.
	 
	30.	 	A certificate in writing under the hand of one Director or the Secretary of the Company that
a share in
the Company has been duly forfeited on a date stated in the declaration shall be conclusive
evidence of
the fact therein stated as against all persons claiming to be entitled to the share. The
Company may
receive the consideration given for the share on any sale or disposition thereof and may
execute a
transfer of the share in favour of the person to whom the share is sold or disposed of and
he shall
thereupon be registered as the holder of the share and shall not be bound to see to the
application of the
purchase money, if any, nor shall his title to the share be affected by any irregularity or
invalidity in the
proceedings in reference to the forfeiture, sale or disposal of the share.
	 
	31.	 	The provisions of these Articles as to forfeiture shall apply in the case of non-payment of
any sum
which, by the terms of issue of a share, becomes payable at a fixed time, whether on account
of the
nominal value of the share or by way of premium as if the same had been payable by virtue of
a call
duly made and notified.

REGISTRATION OF EMPOWERING INSTRUMENTS

	32.	 	The Company shall be entitled to charge a fee not exceeding one dollar (US$1.00) on the
registration of
every probate, letters of administration, certificate of death or marriage, power of
attorney, notice in

26

 

	 	 	lieu of distringas, or other instrument.

TRANSMISSION OF SHARES

	33.	 	In case of the death of a Member, the survivor or survivors where the deceased was a joint
holder, and
the legal personal representatives of the deceased where he was a sole holder, shall be the
only persons
recognised by the Company as having any title to his interest in the shares, but nothing
herein
contained shall release the estate of any such deceased holder from any liability in respect
of any shares
which had been held by him solely or jointly with other persons.

	34.	(a)	Any person becoming entitled to a share in consequence of the death or bankruptcy or
liquidation
or dissolution of a Member (or in any other way than by transfer) may, upon such
evidence being produced as may from time to time be required by the Directors and
subject as hereinafter provided, elect either to be registered himself as holder of
the share or to make such transfer of the share to such other person nominated by him
as the deceased or bankrupt person could have made and to have such person registered
as the transferee thereof, but the Directors shall, in either case, have the same
right to decline or suspend registration as they would have had in the case of a
transfer of the share by that Member before his death or bankruptcy as the case may
be.

	 	(b)	 	If the person so becoming entitled shall elect to be registered himself as
holder he shall deliver or send to the Company a notice in writing signed by him
stating that he so elects.

	35.	 	A person becoming entitled to a share by reason of the death or bankruptcy or liquidation or
dissolution
of the holder (or in any other case than by transfer) shall be entitled to the same
dividends and other
advantages to which he would be entitled if he were the registered holder of the share,
except that he
shall not, before being registered as a Member in respect of the share, be entitled in
respect of it to
exercise any right conferred by membership in relation to meetings of the Company
provided however
that the Directors may at any time give notice requiring any such person to elect either to
be registered
himself or to transfer the share and if the notice is not complied with within ninety days
the Directors
may thereafter withhold payment of all dividends, bonuses or other monies payable in respect
of the
share until the requirements of the notice have been complied with.

AMENDMENT OF MEMORANDUM, CHANGE OF LOCATION OF REGISTERED

OFFICE & ALTERATION OF CAPITAL

	36.	(a)	Subject to and in so far as permitted by the provisions of the Statute and these
Articles, the Company may from time to time by ordinary resolution:

	 	(i)	 	increase the share capital by such sum to be divided into shares
of such amount or without nominal or par value as the resolution shall prescribe
and with such rights, priorities and privileges annexed thereto, as the Company
in general meeting may determine.
	 
	 	(ii)	 	consolidate and divide all or any of its share capital into shares
of larger amount than its existing shares;
	 
	 	(iii)	 	by subdivision of its existing shares or any of them divide the
whole or any part of its share capital into shares of smaller amount than is
fixed by the Memorandum or into shares without nominal or par value;
	 
	 	(iv)	 	cancel any shares which at the date of the passing of the
resolution have not been taken or agreed to be taken by any person.

	 	(b)	 	All new shares created hereunder shall be subject to the same provisions with
reference to the payment of calls, liens, transfer, transmission, forfeiture and
otherwise as the shares in the original share capital.

27

 

	 	(c)	 	Without prejudice to Article 16 hereof and subject to the provisions of the
Statute, the Company
may by Special Resolution reduce its share capital and any capital redemption reserve
fund.
	 
	 	(d)	 	Subject to the provisions of the Statute and Article 16, the Company may by
Special Resolution:
liquidate, wind up, dissolve, enter into receivership or declare bankruptcy or any
like scheme or
arrangement.

CLOSING REGISTER OF MEMBERS OR FIXING RECORD DATE

	37.	 	For the purpose of determining Members entitled to notice of or to vote at any meeting of
Members or
any adjournment thereof, or Members entitled to receive payment of any dividend, or in order
to make
a determination of Members for any other proper purpose, the Directors of the Company may
provide
that the register of Members shall be closed for transfers for a stated period but not to
exceed in any
case forty (40) days. If the register of Members shall be so closed for the purpose of
determining
Members entitled to notice of or to vote at a meeting of Members such register shall be so
closed for at
least ten days immediately preceding such meeting and the record date for such determination
shall be
the date of the closure of the register of Members.
	 
	38.	 	In lieu of or apart from closing the register of Members, the Directors may fix in advance a
date as the
record date for any such determination of Members entitled to notice of or to vote at a
meeting of the
Members and for the purpose of determining the Members entitled to receive payment of any
dividend
the Directors may, at or within ninety (90) days prior to the date of declaration of such
dividend fix a
subsequent date as the record date for such determination.
	 
	39.	 	If the register of Members is not so closed and no record date is fixed for the determination
of Members
entitled to notice of or to vote at a meeting of Members or Members entitled to receive
payment of a
dividend, the date on which notice of the meeting is mailed or the date on which the
resolution of the
Directors declaring such dividend is adopted, as the case may be, shall be the record date
for such
determination of Members. When a determination of Members entitled to vote at any meeting of
Members has been made as provided in this Article, such determination shall apply to any
adjournment
thereof.

GENERAL MEETING

	40.	(a)	Annual General Meeting. Subject to paragraph (c) hereof, a general meeting of
the Members (the “Annual General Meeting”) shall be held within one (1) year of incorporation
of the Company and thereafter, once in every calendar year and not later than fifteen
(15) months after the holding of the last preceding Annual General Meeting. The
Annual General Meeting shall be held at such time and place as the Directors shall
specify in the notice. At these meetings the report of the Directors (if any) shall
be presented.

	 	(b)	 	Extraordinary Meeting. Extraordinary meetings of the Members shall be
held upon the request of
the Chairman, the TPG Director or any two Directors (or as otherwise required pursuant
to the
provisions of the Statute) upon at least fourteen (14) days written notice (containing
the agenda,
date, time and place of the meeting) to all Members and shall be held at such time and
place
designated in such notice, with attendance in person or by telephone or by proxy or
corporate
representative; provided, however, that, subject to applicable law, such
fourteen (14) day notice
requirement may be waived by Members having an aggregate Shareholding Percentage of
not
less than ninety percent (90%) in a particular case. Any notice period referred to
above shall
exclude both the day on which the notice is served or deemed to be served and the day
for which
the notice is given.
	 
	 	(c)	 	If the Company is exempted as defined in the Statute, it may but shall not
be obliged to hold an annual general meeting.

	41.	(a)	The Directors may whenever they think fit, and they shall on the requisition of Members of the

28

 

	 	 	Company holding at the date of the deposit of the requisition not less than one-tenth
of such of the paid-up capital of the Company as at the date of the deposit carries
the right of voting at general meetings of the Company, proceed to convene a general
meeting of the Company.

	 	(b)	 	The requisition must state the objects of the meeting and must be signed by the
requisitionists and
deposited at the registered office of the Company and may consist of several documents in like
form each signed by one or more requisitionists.
	 
	 	(c)	 	If the Directors do not within twenty-one (21) days from the date of the
deposit of the requisition
duly proceed to convene a general meeting, the requisitionists, or any of them
representing more
than one-half of the total voting rights of all of them, may themselves convene a
general meeting,
but any meeting so convened shall not be held after the expiration of three months after the
expiration of the said twenty-one (21) days.
	 
	 	(d)	 	A general meeting convened as aforesaid by requisitionists shall be convened in the same manner
as nearly as possible as that in which general meetings are to be convened by Directors.

NOTICE OF MEETINGS OF THE MEMBERS

	42.	 	General Meeting. At least five (5) days’ notice shall be given of an Annual General
Meeting or any
other general meeting. Every notice shall be exclusive of the day on which it is given or
deemed to be
given and of the day for which it is given and shall specify the place, the day and the hour
of the
meeting and the general nature of the business and shall be given in manner hereinafter
mentioned or in
such other manner if any as may be prescribed by the Company provided that a general
meeting of the
Company shall, whether or not the notice specified in this regulation has been given and
whether or not
the provisions of Article 41 have been complied with, be deemed to have been duly convened
if it is so
agreed:

	 	(a)	 	in the case of a general meeting called as an Annual General Meeting by all the Members entitled
to attend and vote thereat or their proxies; and
	 
	 	(b)	 	in the case of any other general meeting by a majority in number of the Members having a right to
attend and vote at the meeting, being a majority in nominal value or in the case of shares without
nominal or par value a majority of the shares in issue, or their proxies.

	43.	 	[Reserved].
	 
	44.	 	The accidental omission to give notice of a general meeting to, or the non-receipt of notice
of a meeting
by, any person entitled to receive notice shall not invalidate the proceedings of that
meeting.

PROCEEDINGS AT GENERAL MEETINGS

	45.	 	No business shall be transacted at any general meeting unless a quorum of Members is present
at the
time when the meeting proceeds to business. The quorum for any meeting of the Members shall
be
Members whose aggregate Shareholding Percentage is not less than sixty-six and two-thirds
percent
(662/3%) of the Shares entitled to vote present personally or by duly
appointed proxy, attorney or
representative, provided, however, that for the general meeting to be
validly convened, TPG shall be
present or represented. If within half an hour of the time appointed for the meeting no
quorum is
present, the meeting shall be adjourned to the same day one (1) week later at the same time
and place or
to such other day or time as the Chairman may designate upon at least five (5) days’ written
notice to all
of the Members. If at the adjourned meeting no quorum is present within half an hour from
the time
appointed for the meeting, Members whose Shareholding Percentage is not less than sixty-six
and
two-thirds percent (662/3%) of the Shares entitled to vote present or represented at such
meeting shall
constitute a quorum; provided, however, that no action or decision shall be taken on
any matter not
specified in the agenda of the meeting when it was first called.

29

 

	46.	 	Except as otherwise required by applicable law, a resolution (including a Special
Resolution) in writing
(circulated to all the Members) approved and signed by all the Members shall be valid and
effectual as
if it had been a resolution passed at a general meeting of the Members duly convened and
held.
	 
	47.	 	A person may participate at a general meeting by conference telephone or other communications
equipment by means of which all the persons participating in the meeting can communicate
with each
other. Participation by a person in a general meeting in this manner is treated as presence
in person at
that meeting.
	 
	48.	 	The Chairman for the time being shall also preside as chairman at any general meeting.
	 
	49.	 	If the Chairman is absent at any general meeting, a Director shall act as the chairman.
	 
	50.	 	The Chairman may, with the consent of any general meeting duly constituted hereunder, and
shall if so
directed by the meeting, adjourn the meeting from time to time and from place to place, but
no business
shall be transacted at any adjourned meeting other than the business left unfinished at the
meeting from
which the adjournment took place. When a general meeting is adjourned for thirty (30) days
or more,
notice of the adjourned meeting shall be given as in the case of an original meeting; save
as aforesaid it
shall not be necessary to give any notice of an adjournment or of the business to be
transacted at an
adjourned general meeting.
	 
	51.	 	At any general meeting a resolution put to the vote of the meeting shall be decided on a show
of hands
unless a poll is, before or on the declaration of the result of the show of hands, demanded
by the
Chairman or any other Member present in person or by telephone or by proxy or corporate
representative.
	 
	52.	 	Unless a poll be so demanded a declaration by the Chairman that a resolution has on a show of hands
been carried, or carried unanimously, or by a particular majority, or lost, and an entry to
that effect in the
Company’s Minute Book containing the Minutes of the proceedings of the meeting shall be
conclusive
evidence of that fact without proof of the number or proportion of the votes recorded in
favour of or
against such resolution.
	 
	53.	 	The demand for a poll may be withdrawn.
	 
	54.	 	Except as provided in Article 56, if a poll is duly demanded it shall be taken in such manner as the
Chairman directs and the result of the poll shall be deemed to be the resolution of the
general meeting at which the poll was demanded.
	 
	55.	 	In no event, whether on a show of hands or on a poll, shall the Chairman of the general
meeting at
which the show of hands takes place or at which the poll is demanded be entitled to a second
or casting
vote.
	 
	56.	 	A poll demanded on the election of a Chairman or on a question of adjournment shall be taken
forthwith. A poll demanded on any other question shall be taken at such time as the Chairman
of the
general meeting directs and any business other than that upon which a poll has been demanded
or is
contingent thereon may be proceeded with pending the taking of the poll.

VOTES OF MEMBERS

	57.	 	Subject to any rights or restrictions for the time being attached to any class or classes of
shares, on a
show of hands every Member of record present in person or by telephone or by proxy or
corporate
representative at a general meeting shall have one vote and on a poll every Member of record
present in
person or by telephone or by proxy or corporate representative shall have one vote for each
share
registered in his name in the register of Members.
	 
	58.	 	In the case of joint holders of record the vote of the senior who tenders a vote, whether in
person or by

30

 

	 	 	telephone or by proxy or corporate representative, shall be accepted to the exclusion of
the votes of the other joint holders, and for this purpose seniority shall be determined by
the order in which the names stand in the register of Members.

	59.	 	A Member of unsound mind, or in respect of whom an order has been made by any court, having
jurisdiction in lunacy, may vote, whether on a show of hands or on a poll, by his committee,
receiver,
curator bonis, or other person in the nature of a committee, receiver or curator bonis
appointed by that
court, and any such committee, receiver, curator bonis or other persons may vote by proxy.
	 
	60.	 	No Member shall be entitled to vote at any general meeting unless he is registered as a Member of the
Company on the record date for such meeting nor unless all calls or other sums presently payable by
him in respect of shares in the Company have been paid.
	 
	61.	 	No objection shall be raised to the qualification of any voter except at the general meeting or adjourned
general meeting at which the vote objected to is given or tendered and every vote not disallowed at such
general meeting shall be valid for all purposes. Any such objection made in due time shall be referred to
the Chairman of the general meeting whose decision shall be final and conclusive.
	 
	62.	 	On a poll or on a show of hands votes may be given either personally or by proxy.

MEMBER APPROVAL

	63.	(a)	Except as required by applicable law, any action by the Members at any general meeting or
extraordinary meeting shall require the approval of Members having an aggregate
Shareholding Percentage of more than fifty percent (50%) present and voting at a
validly held meeting, and all Special Resolutions by the Members shall require the
approval of Members having an aggregate Shareholding Percentage of more than sixty-six
and two-thirds percent (662/3%) present and voting at a validly held
meeting; provided however, that a Special Resolution for the approval of any
Reserved Matter at a duly convened meeting shall also require that any Shares held and
represented at the requisite meeting by TPG be voted in favor of such matter or
abstained, for so long as there is a TPG Director.

	 	(b)	 	In the event that a resolution of the Members at a meeting is required
pursuant to applicable law in respect of any Reserved Matter, no resolution shall be
put forth at any meeting of the Members and no written resolution of the Members shall
be passed in respect thereof unless such matter has been approved by the Board in
accordance with Article 98(c).

PROXIES

	64.	 	The instrument appointing a proxy shall be in writing and shall be executed under the hand of the
appointor or of his attorney duly authorised in writing, or, if the appointor is a
corporation under the
hand of an officer or attorney duly authorised in that behalf. A proxy need not be a Member
of the
Company.
	 
	65.	 	The instrument appointing a proxy shall be deposited at the registered office of the Company
or at such
other place as is specified for that purpose in the notice convening the meeting:

	 	(a)	 	not less than 48 hours before the time for holding the meeting or adjourned
meeting at which the
person named in the instrument proposes to vote; or
	 
	 	(b)	 	in the case of a poll taken more than 48 hours after it is demanded, be
deposited as aforesaid after
the poll has been demanded and not less than 24 hours before the time appointed for the
taking of the poll; or
	 
	 	(c)	 	where the poll is not taken forthwith but is taken not more than 48 hours after
it was demanded be
delivered at the meeting at which the poll was demanded to the chairman or to the
Secretary or to

31

 

	 	 	 	any Director,

	 	 	provided that the Directors may in the notice convening the meeting, or in an
instrument of proxy sent out by the Company, direct that the instrument appointing a proxy
may be deposited (no later than the time for holding the meeting or adjourned meeting) at
the registered office of the Company or at such other place as is specified for that purpose
in the notice convening the meeting or in any instrument of proxy sent out by the Company.
The Chairman may in any event at his discretion direct that an instrument of proxy shall be
deemed to have been duly deposited. An instrument of proxy that is not deposited in the
manner permitted shall be invalid.
	 
	66.	 	The instrument appointing a proxy may be in any usual or common form and may be expressed to be
for a particular meeting or any adjournment thereof or generally until revoked. An instrument
appointing a proxy shall be deemed to include the power to demand or join or concur in demanding a
poll.
	 
	67.	 	A vote given in accordance with the terms of an instrument of proxy shall be valid notwithstanding the
previous death or insanity of the principal or revocation of the proxy or of the authority under which the
proxy was executed, or the transfer of the share in respect of which the proxy is given provided that no
intimation in writing of such death, insanity, revocation or transfer as aforesaid shall have been received
by the Company at the registered office before the commencement of the general meeting, or adjourned
meeting at which it is sought to use the proxy.
	 
	68.	 	Any corporation which is a Member of record of the Company may in accordance with its
constitutional documents or in the absence of such provision by resolution of its Directors
or other
governing body authorise such person as it thinks fit to act as its representative at any
meeting of the
Company or of any class of Members of the Company, and the person so authorised shall be
entitled to
exercise the same powers on behalf of the corporation which he represents as the corporation
could
exercise if it were an individual Member of record of the Company.
	 
	69.	 	Shares of its own capital belonging to the Company or held by it in a fiduciary capacity
shall not be
voted, directly or indirectly, at any meeting and shall not be counted in determining the
total number of
outstanding shares at any given time.

DIRECTORS

	70.	 	The Board shall consist of five (5) persons initially (exclusive of alternate Directors), unless otherwise
agreed by all of the Members. So long as the Company is not listed on any stock exchange, the Board
shall be comprised of members nominated by the Members whereby the number of Directors
nominated by each Member shall be as nearly as practicable in proportion to such Member’s
Shareholding Percentage (for which purposes a Member may aggregate the Shareholding
Percentage
of some or all of its Affiliates provided those Affiliates do not also exercise their
nomination rights) provided that any Director nominated by a Member shall have acceptable
qualifications to serve on the
Board, and provided further that:

	 	(a)	 	so long as TPG and its Affiliates shall have an aggregate
Shareholding Percentage of at
least five percent (5%), at least one (1) Director will be nominated by TPG (the
“TPG
Director”); and
	 
	 	(b)	 	four (4) Directors will be nominated by FEEL (the “Ordinary
Directors”), so long as FEEL
or its Affiliates shall remain a Member;

	 	 	provided, however, that FEEL shall always be entitled to nominated a majority of
the Directors so long as FEEL and its Affiliates holds a majority of the Shareholding
Percentage of the Company.
	 
	71.	 	The remuneration (if any) to be paid to the Directors shall be such remuneration as the Board shall

32

 

	 	 	determine. Such remuneration shall be deemed to accrue from day to day. The Directors shall
also be entitled to be paid their traveling, hotel and other expenses properly incurred by
them in going to, attending and returning from meetings of the Directors, or any committee
of the Directors, or general meetings of the Company, or otherwise in connection with the
business of the Company, or to receive a fixed allowance in respect thereof as may be
determined by the Directors from time to time, or a combination partly of one such method
and partly the other.

	72.	 	The Board may by resolution award special remuneration to any Director of the Company
undertaking
any special work or services for, or undertaking any special mission on behalf of, the
Company other
than his ordinary routine work as a Director. Any fees paid to a Director who is also
counsel or solicitor
to the Company, or otherwise serves it in a professional capacity shall be in addition to
his
remuneration as a Director.
	 
	73.	 	A Director or alternate Director may hold any other office or place of profit under the
Company (other
than the office of Auditor) in conjunction with his office of Director for such period and
on such terms
as the Directors may determine; provided, however that the remuneration
shall be as the Board may
determine.
	 
	74.	 	A Director or alternate Director may act by himself or his firm in a professional capacity
for the
Company and he or his firm shall be entitled to remuneration for professional services as if
he were not
a Director or alternate Director.
	 
	75.	 	A shareholding qualification for Directors may be fixed by the Board in general meeting, but
unless
and until so fixed no qualification shall be required.
	 
	76.	 	A Director or alternate Director may be or become a director or other officer of or otherwise
interested
in any company promoted by the Company or in which the Company may be interested as
shareholder
or otherwise and no such Director or alternate Director shall be accountable to the Company
for any
remuneration or other benefits received by him as a director or officer of, or from his
interest in, such
other company.
	 
	77.	 	No person shall be disqualified from the office of Director or alternate Director or
prevented by such
office from contracting with the Company, either as vendor, purchaser or otherwise, nor
shall any such
contract or any contract or transaction entered into by or on behalf of the Company in which any
Director or alternate Director shall be in any way interested be or be liable to be avoided,
nor shall any
Director or alternate Director so contracting or being so interested be liable to account to
the Company
for any profit realised by any such contract or transaction by reason of such Director
holding office or
of the fiduciary relation thereby established. A Director (or his alternate Director in his
absence) shall
be at liberty to vote in respect of any contract or transaction in which he is so interested
as aforesaid;
provided, however, that the nature of the interest of any Director or
alternate Director in any such
contract or transaction shall be disclosed by him or the alternate Director appointed by him
at or prior to its consideration and any vote thereon.
	 
	78.	 	A general notice that a Director or alternate Director is a shareholder of any specified firm
or company
and is to be regarded as interested in any transaction with such firm or company shall be
sufficient
disclosure under Article 76 and after such general notice it shall not be necessary to give
special notice
relating to any particular transaction.

ALTERNATE DIRECTORS

	79.	 	A Director may at any time appoint another Person (including another Director) to be his
alternate and
attend and vote at any meeting of the Board at which the appointing Director is absent.
Any such
appointment shall be in writing (by letter or facsimile) and shall be in effect until
terminated by the
appointing Director, whether in such writing or a subsequent writing or until the Director
ceases to be a
director whichever is earlier.

33

 

POWERS AND DUTIES OF DIRECTORS

	80.	 	The business of the Company shall be managed by the Directors (or a sole Director if only one is
appointed) who may pay all expenses incurred in promoting, registering and setting up the
Company,
and may exercise all such powers of the Company as are not, from time to time by the
Statute, or by
these Articles, or such regulations, being not inconsistent with the aforesaid, as may be
prescribed by
the Company in general meeting required to be exercised by the Company in general meeting or
otherwise exercised in accordance with these Articles; provided, however,
that no regulations made by
the Company in general meeting shall invalidate any prior act of the Directors which would
have been
valid if that regulation had not been made.
	 
	81.	 	The Directors may from time to time and at any time by powers of attorney appoint any
company, firm,
person or body of persons, whether nominated directly or indirectly by the Directors, to be
the attorney
or attorneys of the Company for such purpose and with such powers, authorities and
discretions (not
exceeding those vested in or exercisable by the Directors under these Articles) and for such
period and
subject to such conditions as they may think fit, and any such powers of attorney may
contain such
provisions for the protection and convenience of persons dealing with any such attorneys as
the
Directors may think fit and may also authorise any such attorney to delegate all or any of
the powers,
authorities and discretions vested in him.
	 
	82.	 	All cheques, promissory notes, drafts, bills of exchange and other negotiable instruments and all
receipts for monies paid to the Company shall be signed, drawn, accepted, endorsed or
otherwise
executed as the case may be in such manner as the Directors shall from time to time by
resolution
determine.
	 
	83.	 	The Directors shall cause minutes to be made in books provided for the purpose:

	 	(a)	 	of all appointments of officers made by the Directors;
	 
	 	(b)	 	of the names of the Directors (including those represented thereat by an
alternate or by proxy)
present at each meeting of the Directors and of any committee of the Directors;
	 
	 	(c)	 	of all resolutions and proceedings at all meetings of the Company and of the
Directors and of
committees of Directors.

	84.	 	The Board may by resolution pay a gratuity or pension or allowance on retirement to any
Director who has held any other salaried office or place of profit with the Company or to his widow or
dependants and may make contributions to any fund and pay premiums for the purchase or provision of any
such gratuity, pension or allowance.

MANAGEMENT

	85.	 	The Directors may from time to time provide for the management of the affairs of the Company in such
manner as they shall think fit, including without limitation, through the establishment of committees,
local boards or agencies for managing any of the affairs of the Company and the appointment of
persons to be members of such committees or local boards or any managers or agents as determined by
the Directors. The Directors from time to time and at any time may, as they shall think fit, delegate to
any such committee, local board, manager or agent any of the powers, authorities and discretions for
the time being vested in the Directors. Any such committee, local board or agency shall be chaired by
an Ordinary Director. The Board shall be responsible for fixing the remuneration of all members of
any such committee, local board or agency.

MANAGING DIRECTORS

	86.	 	The Directors may, from time to time, appoint one or more of their body (but not an alternate Director)
to the office of Managing Director for such term and at such remuneration (whether by way of salary,

34

 

	 	 	or commission, or participation in profits, or partly in one way and partly in another) as
they may think fit but his appointment shall be subject to determination ipso facto if he
ceases from any cause to be a Director and no alternate Director appointed by him can act
in his stead as a Director or Managing Director.

	87.	 	The Directors may entrust to and confer upon a Managing Director any of the powers
exercisable by
them upon such terms and conditions and with such restrictions as they may think fit and
either
collaterally with or to the exclusion of their own powers and may from time to time revoke,
withdraw,
alter or vary all or any of such powers.

PROCEEDINGS OF DIRECTORS

	88.	 	Except as otherwise provided by these Articles, the Board shall hold a regular meeting at
least once
each calendar quarter at a location the Board shall determine. The date, time and location
of any such
regular meeting shall be established by the Board and notified to each Director in writing
at least
fourteen (14) days in advance.
	 
	89.	 	Special meetings of the Board shall be held upon the request of the Chairman or any Director
upon at
least five (5) Business Days’ written notice (containing the agenda, date, time and place of
the meeting)
to the Directors and shall be held at such time and place designated in such notice,
provided, however,
that if any Reserved Matter is to be voted on in any meeting of the Board, the notice for
such meeting
shall specify such Reserved Matter separately from other matters and provided
further, if notice is
given in person, by cable, telex or telecopy the same shall be deemed to have been given on
the day it is
delivered to the Directors or transmitting organisation as the case may be. The provisions
of Article 44
shall apply mutatis mutandis with respect to notices of meetings of Directors.
	 
	90.	 	The quorum for any meeting of the Board shall be a majority of the Directors, consisting of
at least two
(2) Ordinary Directors and, if any, the TPG Director, each Director present personally or by his
alternate. If within half an hour of the time appointed for the meeting no quorum is
present, the meeting
shall be adjourned to the same day one (1) week later at the same time and place or to such other day or
time as the Chairman may designate upon at least five (5) days’ written notice to all of the Directors. If
at the adjourned meeting no quorum is present within half an hour from the time appointed for the
meeting, any two (2) Directors present at such meeting shall
constitute a quorum; provided, however,
that no action or decision shall be taken on any matter not specified in the agenda of the meeting when
it was first called.
	 
	91.	 	The continuing Directors may act notwithstanding any vacancy in their body, but if and so long as their
number is reduced below the number fixed by or pursuant to these Articles as the necessary quorum of
Directors the continuing Directors or Director may act for the purpose of increasing the number of
Directors to that number, or of summoning a general meeting of the Company, but for no other purpose.
	 
	92.	 	The Chairman of the Board (the ’Chairman”) shall be one of the Ordinary Directors.
The Chairman
shall chair all meetings of the Board; provided,
however, that if the Chairman is
absent from any such
meeting, one of the other Ordinary Directors shall chair such meeting.
	 
	93.	 	The Directors may delegate any of their powers to committees consisting of such member or members
of the Board of Directors (including Alternate Directors in the absence of their appointors)
as they
think fit; any committee so formed shall in the exercise of the powers so delegated conform
to any
regulations that may be imposed on it by the Directors.
	 
	94.	 	A committee may meet and adjourn as it thinks proper. Questions arising at any meeting shall be
determined by a majority of votes of the members present, and the Chairman shall not have a second or
casting vote.
	 
	95.	 	All acts done by any meeting of the Directors or of a committee of Directors (including any person

35

 

	 	 	acting as an alternate Director) shall, notwithstanding that it be afterwards discovered
that there was some defect in the appointment of any Director or alternate Director, or
that they or any of them were disqualified, be as valid as if every such person had been
duly appointed and qualified to be a Director or alternate Director as the case may be.

	96.	 	The Directors may hold a meeting of the Directors by means of a telephone conference and
members of
the Board or of any committee thereof may participate in a meeting of the Board or of such
committee
by means of conference telephone or similar communications equipment by means of which all
persons participating in the meeting can hear each other and participation in a meeting
pursuant to this
provision shall constitute presence in person at such meeting. The Board may take action by
written
resolution signed and approved by all of the Directors in lieu of holding a meeting. Such
written
resolution may be signed in counterparts.

	97.	(a)	A Director but not an alternate Director may be represented at any meetings of the Board by a
proxy appointed by him in which event the presence or vote of the proxy shall for all
purposes be deemed to be that of the Director.

	 	(b)	 	The provisions of Articles 63-66 shall mutatis mutandis apply to the
appointment of proxies by Directors.

	98.	(a)	Except as otherwise provided in, or delegated in accordance with, these Articles or required by
applicable law, all matters requiring the approval of the Board shall be subject to
the approval of a majority of the Directors present and voting at a duly convened
meeting.

	 	(b)	 	Notwithstanding anything in these Articles to the contrary, all matters
relating to the Qualified
IPO will be subject to Board approval pursuant to Article 98(a) and will not be
considered a
Reserved Matter subject to consent pursuant to Article 98(c).
	 
	 	(c)	 	Any of the following matters shall, in addition to the approval of the Members
of the Company as
set forth in Article 63, be subject to the approval of a majority of the Directors
present and voting
at a duly convened meeting at which the TPG Director shall not have voted against such
matter
(each a “Reserved Matter”), provided, however, that, unless
the TPG Director agrees, no such
Reserved Matter may be proposed at any such meeting unless the notice for such meeting
provided pursuant to Articles 87 or 88 contains reasonably sufficient details
regarding such
Reserved Matter; provided further, that the TPG Director shall not
unreasonably vote against any
matter falling under Article 98(c)(x) if the purpose for incurring the additional
Indebtedness is for
the development of additional oilfields and other related businesses of the Company or
any
Material Subsidiary. In the event that the Board cannot reach a resolution of any
Reserved Matter
within thirty (30) days of the calling of the initial meeting for such matter, the
Company and the
Members shall reasonably cooperate and use reasonable best efforts to work towards a
mutually
agreeable resolution.

	 	(i)	 	any Trade Sale, merger, consolidation, reorganization or
acquisition, or any other transaction that would constitute a change of control,
of the Company or any Material Subsidiary;
	 
	 	(ii)	 	any sale of all or substantially all of the business of the
Company or any Material Subsidiary;
	 
	 	(iii)	 	any material change in the scope of business of the Company or MIE;
	 
	 	(iv)	 	the creation, grant or issuance of any New Securities by the
Company or any shares or rights to subscribe for, or options, warrants or other
securities convertible into or exercisable or exchangeable for, equity
securities of any member of the MIE Group (other than any creation, grant or
issuance of a new series of preferred shares of the Company (the “New
Preferred Shares”); provided that (a) the New Preferred Shares

36

 

	 	 	 	shall only be issued to a third party investor (other than FEEL or any of its Affiliates)
which is a leading reputable international institutional investor, (b) the aggregate
principal amount, face amount or liquidation preference amount of the New Preferred Shares
shall not exceed US$20,000,000 at any time outstanding, (c) the per share subscription
price of the New Preferred Shares shall be equal to or higher than the Per Share
Subscription Price (as defined in the SPA), and (d) the terms and conditions of, or rights
relating to, the New Preferred Shares (whether pursuant to the Restated Articles,
contractual or otherwise) are not more favorable than those applicable to the Series A
Preferred Shares taking into consideration the percentage of shareholding represented by
the New Preferred Shares;

	 	(v)	 	any redemption or repurchase by the Company of any equity securities of the Company, other
than a redemption of the Put Shares (as defined in the SPA or a redemption of any Shares held
by Standard Bank pursuant to the Standard Bank Equity Agreements);
	 
	 	(vi)	 	change in any rights attaching to any securities issued by the Company or granting of any
right to the holders of any securities issued by the Company if (a) the holder(s) of such
rights is FEEL or any of its Affiliates (other than as may be required to consummate the
transactions under the Standard Bank Equity Agreements) or (b) such rights are superior to the
rights of the holders of the Series A Preferred Shares;
	 
	 	(vii)	 	any declaration, setting aside or payment of any dividend or other distribution in respect
of the Shares, except as set forth in the Shareholders’ Agreement.
	 
	 	(viii)	 	any repayment by MIE of any loan from a direct or indirect shareholder;
	 
	 	(ix)	 	incurrence of annual expenses by any member of the MIE Group for an individual item or
directly related group of items, or any transaction, which is both outside the scope of the
then annual budget as approved by the Joint Management Committee under the Company’s existing
production sharing contracts with China National Petroleum
Corporation (the “JMC
Budget”) and which annual expense, in the aggregate, exceeds the greater of US$10,000,000
and 10% of the then current JMC Budget;
	 
	 	(x)	 	incurring any additional Indebtedness (other than any Indebtedness incurred under the
Standard Bank Facility) exceeding in the aggregate US$20,000,000 during the 12-month period
following the date of the completion of the Company’s initial Series A Preferred Shares
financing and US$40,000,000 during the 24-month period following the date of the completion of
the Company’s initial Series A Preferred Shares financing;
	 
	 	(xi)	 	entering by any member of the MIE Group into any transaction with any Person involving the
making of payments by or obligations or liabilities of any member of the MIE Group outside
the ordinary course of business in excess of US$15,000,000;
	 
	 	(xii)	 	entering by any member of the MIE Group into any transaction with any Affiliate or any
Member, director or officer or member of the Company or Affiliate of any Member, director or
officer or member of the Company outside the ordinary course of business, except as set forth
in the Shareholders’ Agreement.
	 
	 	(xiii)	 	any amendment of the Memorandum or these Articles or other governing documents of any member
of the MIE Group to the extent such amendment would adversely affect the rights already
granted to the holders of the Series A Preferred Shares;
	 
	 	(xiv)	 	any liquidation, winding up, dissolution, receivership, bankruptcy or any like scheme or
arrangement of the Company or any Material Subsidiary;
	 
	 	(xv)	 	any appointment or removal of the auditors of the Company or any Material Subsidiary;

37

 

	 	(xvi)	 	any material change to the accounting or tax policies of the Company or
any Material Subsidiary, other than any material change implemented to be in
compliance with any relevant laws, rules and regulations applicable to the
Company;
	 
	 	(xvii)	 	the creation of any Encumbrance over any material asset or group of assets of,
or over substantially all the undertaking of, any member of the MIE Group (save
for Encumbrances that (i) arise by operation of law or (ii) which any member of
the MIE Group is obliged to create under the terms of the Standard Bank Facility)
or the giving by any member of the MIE Group of any guarantee or indemnity in
respect of the obligation of any person (other than any guarantee or indemnity
given by a member of the MIE Group in respect of the obligations of the Company
or of a wholly-owned subsidiary of the Company or any guarantee or indemnity
given by a member of the MIE Group under the terms of the Standard Bank Equity
Agreements); and
	 
	 	(xviii)	 	(i) Acquisition of the whole or any significant part of any business or
undertaking or any shares in the capital, of a company, or formation of any
subsidiary company or subsidiary undertaking, (ii) entering into any joint
venture or partnership with any person, or (iii) engagement in any kind of
overseas expansion, in each case, exceeding US$20,000,000 in total expenditure
or purchase price, as the case may be;
	 
	 	(xix)	 	Any settlement of any material litigation, arbitration or
administrative proceeding involving any member of the MIE Group in excess of
US$3,000,000; and
	 
	 	(xx)	 	the delegation of any authority of the Board, or the agreement
with any Person, conditionally or otherwise, to do any of the foregoing.

	 	(d)	 	Each Director shall have one (1) vote and no Director shall
have a casting vote.

VACATION OF OFFICE OF DIRECTOR

	99.	 	The office of a Director shall be vacated:

	 	(a)	 	if he gives notice in writing to the Company that he resigns the office of Director;
	 
	 	(b)	 	if he absents himself (without being represented by proxy or an alternate Director appointed by
him) from three consecutive meetings of the Board of Directors without special leave of absence
from the Directors, and they pass a resolution that he has by reason of such absence vacated
office;
	 
	 	(c)	 	if he dies, becomes bankrupt or makes any arrangement or composition with his creditors
generally;
	 
	 	(d)	 	if he is found a lunatic or becomes of unsound mind.

APPOINTMENT AND REMOVAL OF DIRECTORS

	100.	 	Appointment of Directors. In the event of the appointment of a Director nominated in
accordance with
Article 70, the Members shall vote their Shares to cause the appointment to the Board of the
Director so
designated for appointment by the appropriate Member.
	 
	101.	 	Removal of Directors. A Director may be removed and replaced at any time by the
Member(s) that has
nominated such Director in accordance with the provisions of the Statute. If a Director
becomes
disqualified under applicable law, his position of Director shall be vacated and the Member
that
nominated such Director shall nominate a new Director in accordance with Article 70 and the
Members shall vote their Shares to cause the election to the Board of any such new Director.
In the

38

 

	 	 	event of such a removal and/or replacement of a Director in accordance with this Article
101 and Article 102, and subject always to the terms of Article 70, the Members shall vote
their Shares to cause (i) the removal from the Board of the Director so designated for
removal by the appropriate Member(s) and (ii) the election to the Board of any new Director
so designated for election to the Board by the appropriate Member(s).

	102.	 	Method of Nomination and Removal. Nominations and removals of Directors shall be by written
memorandum signed by the relevant Member(s) and shall be effective from the time stated in the
memorandum or, if no time is stated, from the time when the memorandum is lodged at the Company’s
registered office.

PRESUMPTION OF ASSENT

	103.	 	A Director who is present at a meeting of the Board at which action on any Company matter is taken
shall be presumed to have assented to the action taken unless his dissent shall be entered in the Minutes
of the meeting or unless he shall file his written dissent from such action with the person acting as the
Secretary of the meeting before the adjournment thereof or shall forward such dissent by registered
mail to such person immediately after the adjournment of the meeting. Such right to dissent shall not
apply to a Director who voted in favour of such action.

[RESERVED]

	104.	 	[Reserved].

SEAL

	105.	 	(a) 	 	The Company may, if the Directors so determine, have a Seal which shall, subject to
paragraph (c) hereof, only be used by the authority of the Directors or of a committee of the
Directors authorised by the Directors in that behalf and every instrument to which
the Seal has been affixed shall be signed by one person who shall be either a
Director or the Secretary or Secretary-Treasurer or some person appointed by the
Directors for the purpose.

	 	(b)	 	The Company may have for use in any place or places outside the Cayman Islands
a duplicate
Seal or Seals each of which shall be a facsimile of the Seal of the Company and, if
the Directors
so determine, with the addition on its face of the name of every place where it is to
be used.
	 
	 	(c)	 	A Director, Secretary or other officer or representative or attorney may
without further authority
of the Directors affix the Seal of the Company over his signature alone to any
document of the
Company required to be authenticated by him under Seal or to be filed with the
Registrar of
Companies in the Cayman Islands or elsewhere wheresoever.

OFFICERS

	106.	 	The Company may have a President, a Secretary or Secretary-Treasurer appointed by the
Directors
who may also from time to time appoint such other officers as they consider necessary, all
for such
terms, at such remuneration and to perform such duties, and subject to such provisions as to
disqualification and removal as the Directors from time to time prescribe.

DIVIDENDS, DISTRIBUTIONS AND RESERVE

	107.	 	Subject to the Statute and these Articles, the Directors may from time to time declare
dividends
(including interim dividends) and distributions on shares of the Company outstanding and
authorise
payment of the same out of the funds of the Company lawfully available therefore.
	 
	108.	 	The Directors may, before declaring any dividends or distributions, set aside such sums as
they think
proper as a reserve or reserves which shall at the discretion of the Directors, be
applicable for any

39

 

	 	 	purpose of the Company and pending such application may, at the like discretion, be
employed in the business of the Company.

	109.	 	No dividend or distribution shall be payable except out of the profits of the Company,
realised or
unrealised, or out of the share premium account or as otherwise permitted by the Statute.
	 
	110.	 	Subject to the rights of persons, if any, entitled to shares with special rights as to
dividends or
distributions, if dividends or distributions are to be declared on a class of shares they
shall be declared
and paid according to the amounts paid or credited as paid on the shares of such class
outstanding on
the record date for such dividend or distribution as determined in accordance with these
Articles but no
amount paid or credited as paid on a share in advance of calls shall be treated for the
purpose of this
Article as paid on the share.
	 
	111.	 	The Directors may deduct from any dividend or distribution payable to any Member all sums of
money
(if any) presently payable by him to the Company on account of calls or otherwise.
	 
	112.	 	The Directors may declare that any dividend or distribution be paid wholly or partly by the
distribution
of specific assets and in particular of paid up shares, debentures, or debenture stock of
any other
company or in any one or more of such ways and where any difficulty arises in regard to such
distribution, the Directors may settle the same as they think expedient and in particular
may issue
fractional certificates and fix the value for distribution of such specific assets or any
part thereof and
may determine that cash payments shall be made to any Members upon the footing of the value
so
fixed in order to adjust the rights of all Members and may vest any such specific assets in
trustees as
may seem expedient to the Directors.
	 
	113.	 	Any dividend, distribution, interest or other monies payable in cash in respect of shares may
be paid by
cheque or warrant sent through the post directed to the registered address of the holder or,
in the case of
joint holders, to the holder who is first named on the register of Members or to such person
and to such
address as such holder or joint holders may in writing direct. Every such cheque or warrant
shall be
made payable to the order of the person to whom it is sent. Any one of two or more joint
holders may
give effectual receipts for any dividends, bonuses, or other monies payable in respect of
the share held
by them as joint holders.
	 
	114.	 	No dividend or distribution shall bear interest against the Company.

CAPITALISATION

	115.	 	The Company may upon the recommendation of the Directors by ordinary resolution authorise the
Directors to capitalise any sum standing to the credit of any of the Company’s reserve
accounts
(including share premium account and capital redemption reserve fund) or any sum standing to
the
credit of profit and loss account or otherwise available for distribution and to appropriate
such sum to
Members in the proportions in which such sum would have been divisible amongst them had the
same
been a distribution of profits by way of dividend and to apply such sum on their behalf in
paying up in
full unissued shares for allotment and distribution credited as fully paid up to and amongst
them in the
proportion aforesaid. In such event the Directors shall do all acts and things required to
give effect to
such capitalisation, with full power to the Directors to make such provisions as they think
fit for the
case of shares becoming distributable in fractions (including provisions whereby the benefit
of
fractional entitlements accrue to the Company rather than to the Members concerned). The
Directors
may authorise any person to enter on behalf of all of the Members interested into an
agreement with the
Company providing for such capitalisation and matters incidental thereto and any agreement
made
under such authority shall be effective and binding on all concerned.

BOOKS OF ACCOUNT

	116.	 	The Directors shall cause proper books of account to be kept with respect to:

40

 

	 	(a)	 	all sums of money received and expended by the Company and the matters in respect of which
the receipt or expenditure takes place;
	 
	 	(b)	 	all sales and purchases of goods by the Company;
	 
	 	(c)	 	the assets and liabilities of the Company.

	 	 	Proper books shall not be deemed to be kept if there are not kept such books of account as
are necessary to give a true and fair view of the state of the Company’s affairs and to
explain its transactions.
	 
	117.	 	The Directors may from time to time cause to be prepared and to be laid before the Company in
general
meeting profit and loss accounts, balance sheets, group accounts (if any) and such other
reports and
accounts as may be required by law.

AUDIT

	118.	 	The Company may at any Annual General Meeting appoint an Auditor or Auditors of the Company
who shall hold office until the next Annual General Meeting and may fix his or their
remuneration.
	 
	119.	 	The Directors may before the first Annual General Meeting appoint an Auditor or Auditors of the
Company who shall hold office until the first Annual General Meeting unless previously
removed by
an ordinary resolution of the Members in general meeting in which case the Members at that
meeting
may appoint Auditors. The Directors may fill any casual vacancy in the office of Auditor but
while any
such vacancy continues the surviving or continuing Auditor or Auditors, if any, may act. The
remuneration of any Auditor appointed by the Directors under this Article may be fixed by
the
Directors.
	 
	120.	 	Every Auditor of the Company shall have a right of access at all times to the books and
accounts and
vouchers of the Company and shall be entitled to require from the Directors and Officers of
the
Company such information and explanation as may be necessary for the performance of the
duties of
the auditors.
	 
	121.	 	Auditors shall at the next Annual General Meeting following their appointment and at any
other time
during their term of office, upon request of the Directors or any general meeting of the
Members, make
a report on the accounts of the Company in general meeting during their tenure of office.

NOTICES

	122.	 	Notices shall be in writing and may be given by the Company to any Member either personally
or by
sending it by post, cable, telex or telecopy to him or to his address as shown in the
register of Members,
such notice, if mailed, to be forwarded airmail if the address be outside the Cayman
Islands.

	123.	 	(a) 	 	Where a notice is sent by post, service of the notice shall be deemed to be effected
by properly addressing, pre-paying and posting a letter containing the notice, and to have been
effected at the expiration of sixty (60) hours after the letter containing the same is
posted as aforesaid.

	 	(b)	 	Where a notice is sent by cable, telex, telecopy or electronic message,
service of the notice shall be deemed to be effected by properly addressing, and
sending such notice through a transmitting organisation and to have been effected on
the day the same is sent as aforesaid.

	124.	 	A notice may be given by the Company to the joint holders of record of a share by giving the notice to
the joint holder first named on the register of Members in respect of the share.
	 
	125.	 	A notice may be given by the Company to the person or persons which the Company has been advised
are entitled to a share or shares in consequence of the death or bankruptcy of a Member by sending it
through the post as aforesaid in a pre-paid letter addressed to them by name, or by the title of

41

 

	 	 	representatives of the deceased, or trustee of the bankrupt, or by any like description at
the address supplied for that purpose by the persons claiming to be so entitled, or at the
option of the Company by giving the notice in any manner in which the same might have been
given if the death or bankruptcy had not occurred.

	126.	 	Notice of every general meeting shall be given in any manner hereinbefore authorised to:

	 	(a)	 	every person shown as a Member in the register of Members as of the record date
for such
meeting except that in the case of joint holders the notice shall be sufficient if
given to the joint
holder first named in the register of Members.
	 
	 	(b)	 	every person upon whom the ownership of a share devolves by reason of his being
a legal
personal representative or a trustee in bankruptcy of a Member of record where the
Member of
record but for his death or bankruptcy would be entitled to receive notice of the
meeting; and

	 	 	No other person shall be entitled to receive notices of general meetings.

WINDING UP

	127.	 	If the Company shall be wound up the liquidator may, with the sanction of a Special
Resolution of the
Company and any other sanction required by the Statute, divide amongst the Members in specie or
kind the whole or any part of the assets of the Company (whether they shall consist of
property of the
same kind or not) and may for such purpose set such value as he deems fair upon any property
to be
divided as aforesaid and may determine how such division shall be carried out as between the
Members or different classes of Members. The liquidator may with the like sanction, vest the
whole or
any part of such assets in trustees upon such trusts for the benefit of the contributories
as the liquidator,
with the like sanction, shall think fit, but so that no Member shall be compelled to accept
any shares or
other securities whereon there is any liability.
	 
	128.	 	If the Company shall be wound up, and the assets available for distribution amongst the
Members as
such shall be insufficient to repay the whole of the paid-up capital, such assets shall be
distributed so
that, as nearly as may be, the losses shall be borne by the Members in proportion to the
capital paid up,
or which ought to have been paid up, at the commencement of the winding up on the shares
held by
them respectively. And if in a winding up the assets available for distribution amongst the
Members
shall be more than sufficient to repay the whole of the capital paid up at the commencement
of the
winding up, the excess shall be distributed amongst the Members in proportion to the capital
paid up at
the commencement of the winding up on the shares held by them respectively. This Article is
to be
without prejudice to the rights of the holders of shares issued upon special terms and
conditions.

INDEMNITY

	129.	 	The Directors and officers for the time being of the Company and any trustee for the time
being acting
in relation to any of the affairs of the Company and their heirs, executors, administrators
and personal
representatives respectively shall be indemnified out of the assets of the Company from and
against all
actions, proceedings, costs, charges, losses, damages and expenses which they or any of them
shall or
may incur or sustain by reason of any act done or omitted in or about the execution of their
duty in their
respective offices or trusts, except such (if any) as they shall incur or sustain by or
through their own
wilful neglect or default respectively and no such Director, officer or trustee shall be
answerable for the
acts, receipts, neglects or defaults of any other Director, officer or trustee or for
joining in any receipt
for the sake of conformity or for the solvency or honesty of any banker or other persons
with whom any
monies or effects belonging to the Company may be lodged or deposited for safe custody or
for any
insufficiency of any security upon which any monies of the Company may be invested or for
any other
loss or damage due to any such cause as aforesaid or which may happen in or about the
execution of his
office or trust unless the same shall happen through the wilful neglect or default of such
Director,
Officer or trustee.

42

 

FINANCIAL YEAR

	130.	 	Unless the Directors otherwise prescribe, the financial year of the Company shall end on 31st
December in each year and, following the year of incorporation, shall begin on 1 st January
in each
year.

AMENDMENTS OF ARTICLES

	131.	 	Subject to the Statute and these Articles, the Company may at any time and from time to time
by Special Resolution alter or amend these Articles in whole or in part.

TRANSFER BY WAY OF CONTINUATION

	132.	 	If the Company is exempted as defined in the Statute, it shall, subject to the provisions of
the Statute
and with the approval of a Special Resolution, have the power to register by way of
continuation as a
body corporate under the laws of any jurisdiction outside the Cayman Islands and to be
deregistered in
the Cayman Islands.

43

 

			
	
	 	CLIFFORD CHANCE PTE LTD

Exhibit B

DATED [     ]

FIRST AMENDMENT AND RESTATEMENT AGREEMENT

FAR EAST ENERGY LIMITED

as Seller

MIE HOLDINGS CORPORATION

as Company

MI ENERGY CORPORATION

and

STANDARD BANK PLC

as Buyer

 

RELATING TO AN

OPTION AGREEMENT

DATED 12 JANUARY 2009

 

 

 

CONTENTS

	 	 	 	 	 	 	 	 	 
	Clause	 	 	 	 	Page
	 
	 	1.	 	 	Definitions And Interpretation
	 	 	1	 
	 	2.	 	 	Restatement
	 	 	1	 
	 	3.	 	 	Warranties
	 	 	2	 
	 	4.	 	 	Continuity And Further Assurance
	 	 	2	 
	 	5.	 	 	Fees, Costs And Expenses
	 	 	2	 
	 	6.	 	 	Miscellaneous
	 	 	2	 
	 	7.	 	 	Governing Law
	 	 	2	 
	 
	Schedule 1 	 	Restated Agreement
	 	 	4	 

-1-

 

THIS DEED is made on

BETWEEN:

	(1)	 	FAR EAST ENERGY LIMITED, a company organised under the laws of Hong Kong (the “Seller”);
	 
	(2)	 	MIE HOLDINGS CORPORATION, an exempt company incorporated with limited liability in the Cayman
Islands (the “Company”);
	 
	(3)	 	MI ENERGY CORPORATION, an exempted company incorporated with limited liability in the Cayman
Island (“MIE”); and
	 
	(4)	 	STANDARD BANK PLC (the “Buyer”).

THE PARTIES AGREE as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Deed:
	 
	 	 	“Effective Date” means the date of “Completion” under the TPG SPA.
	 
	 	 	“Original Option Agreement” means the Option Agreement dated 12 January 2009 between the
Seller and the Buyer.
	 
	 	 	“Restated Agreement” means the Original Option Agreement, as amended by this Deed, the
terms of which are set out in Schedule 1 (Restated Agreement).
	 
	1.2	 	Incorporation of defined terms

	 	(a)	 	Unless a contrary indication appears, a term defined in the Restated Agreement
has the same meaning in this Deed.
	 
	 	(b)	 	The principles of construction set out in the Original Option Agreement shall
have effect as if set out in this Deed.

	1.3	 	Clauses
	 
	 	 	In this Deed any reference to a “Clause” or a “Schedule” is, unless the context otherwise
requires, a reference to a Clause or a Schedule to this Deed.
	 
	1.4	 	Third party rights
	 
	 	 	A person who is not a party to this Deed has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Deed.
	 
	2.	 	RESTATEMENT
	 
	2.1	 	Restatement of the Original Option Agreement
	 
	 	 	With effect from the Effective Date and in consideration of the sum of $1 paid by the Buyer
to the Seller, the Company and MIE (the receipt and sufficiency of which is acknowledged by
the Seller, the Company and MIE) the Original Option Agreement shall be amended and
restated so that it shall be read and construed for all purposes as set out in Schedule 2
(Restated Agreement.)

-1-

 

	3.	 	WARRANTIES
	 
	 	 	The Seller warrants to the Buyer that each Warranty is true, accurate and not misleading as
at the date of this Deed and as if references in any Warranty to “this Deed” are references
to this Deed.
	 
	4.	 	CONTINUITY AND FURTHER ASSURANCE
	 
	4.1	 	Continuing obligations
	 
	 	 	The provisions of the Original Option Agreement shall, save as amended by this Deed,
continue in full force and effect.
	 
	4.2	 	Further assurance
	 
	 	 	Each of the Seller, the Company and MIE shall, at the request of the Buyer and at its own
expense, do all such acts and things necessary or desirable to give effect to the
amendments effected or to be effected pursuant to this Deed.
	 
	5.	 	FEES, COSTS AND EXPENSES
	 
	5.1	 	Transaction expenses
	 
	 	 	The Seller shall promptly on demand pay the Buyer the amount of all costs and expenses
(including legal fees) reasonably incurred by the Buyer in connection with the negotiation,
preparation, printing and execution of this Deed and any other documents referred to in
this Deed.
	 
	5.2	 	Enforcement costs
	 
	 	 	The Seller shall, within three Business Days of demand, pay to the Buyer the amount of all
costs and expenses (including legal fees) incurred by the Buyer in connection with the
enforcement of, or the preservation of any rights under, this Deed.
	 
	5.3	 	Stamp taxes
	 
	 	 	The Seller shall pay and, within three Business Days of demand, indemnify the Buyer against
any cost, loss or liability that Finance Party incurs in relation to all stamp duty,
registration and other similar Taxes payable in respect of this Deed.
	 
	6.	 	MISCELLANEOUS
	 
	6.1	 	Incorporation of terms
	 
	 	 	The provisions of Clause 11 (Notices), Clause 12 (Governing Law and Jurisdiction), and
Clause 14 (Invalidity) of the Original Option Agreement shall be incorporated into this
Deed as if set out in full in this Deed and as if references in those clauses to “this
Deed” are references to this Deed.
	 
	6.2	 	Counterparts
	 
	 	 	This Deed may be executed in any number of counterparts, and this has the same effect as if
the signatures on the counterparts were on a single copy of this Deed.
	 
	7.	 	GOVERNING LAW
	 
	 	 	This Deed and any non-contractual obligations arising out of or in connection with it are
governed by English law.

-2-

 

IN WITNESS WHEREOF, this Deed has been signed by the Buyer and duly executed as a deed by the
Seller, the Company and MIE and is intended to be and is hereby delivered by each of the Seller,
the Company and MIE as a deed on the date specified above.

-3-

 

SCHEDULE 1

Restated Agreement

-4-

 

			
	
	 	CLIFFORD CHANCE PTE LTD

DATED 12 JANUARY 2009

AMENDED AND RESTATED

ON THE FIRST EFFECTIVE DATE

FAR EAST ENERGY LIMITED

as Seller

MIE HOLDINGS CORPORATION

as Company and Company

MI ENERGY CORPORATION

and

STANDARD BANK PLC

as Buyer

 

OPTION AGREEMENT

 

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page
	 
	 	 	 	 
	1.     Interpretation
	 	 	1	 
	2.     Grant of Option to Buy Shares
	 	 	8	 
	3.     Exercise of Option
	 	 	8	 
	4.     Cancellation of Option
	 	 	9	 
	5.     Completion
	 	 	9	 
	6.     Payment of Option Price
	 	 	10	 
	7.     Warranties
	 	 	10	 
	8.     Undertakings
	 	 	11	 
	9.     Indemnities
	 	 	11	 
	10.   Put Option
	 	 	14	 
	11.   Covenants
	 	 	16	 
	12.   General
	 	 	18	 
	13.   Assignment
	 	 	18	 
	14.   Notices
	 	 	19	 
	15.   Governing Law and Jurisdiction
	 	 	20	 
	16.   Counterparts
	 	 	20	 
	17.   Invalidity
	 	 	20	 
	 
	 	 	 	 
	SCHEDULE 1     Form of Option Notice
	 	 	21	 
	SCHEDULE 2     Warranties 
	 	 	22	 
	SCHEDULE 3     Completion Requirements
	 	 	23	 
	SCHEDULE 4     Form of Share Charge
	 	 	24	 

 

 

THIS DEED is made on 12 January 2009 and is amended and restated on the First Effective Date

BETWEEN:

	(1)	 	FAR EAST ENERGY LIMITED, a company organised under the laws of Hong Kong (the “Seller”);
	 
	(2)	 	MIE HOLDINGS CORPORATION, an exempt company incorporated with limited liability in the Cayman
Islands (the “Company”);
	 
	(3)	 	MI ENERGY CORPORATION, an exempted company incorporated with limited liability in the Cayman
Islands (“MIE”); and
	 
	(4)	 	STANDARD BANK PLC (the “Buyer”).

THE PARTIES AGREE as follows:

	1.	 	INTERPRETATION
	 
	1.1	 	In this Deed:
	 
	 	 	“2008 Accounts” means the audited financial statements of MIE as of 31 December 2008 as
certified by MIE’s accountants.
	 
	 	 	“Affiliate” means, with respect to any specified Person, any other Person who or which,
directly or indirectly, controls, is controlled by, or is under common control with, such
specified Person, including, without limitation, any general partner, officer, director,
member, manager or employee of such Person and any investment fund now or hereafter existing
that is controlled by or under common control with one or more general partners or managing
members of, or shares the same management company with, such Person; provided, that (i) with
respect to TPG, Affiliate shall include any other person that controls, is controlled by, or
is under common control with TPG Star, L.P. and/or its Affiliates and (ii) with respect to
the Seller and the Company, Affiliate shall include Zhang and Zhao and each of their
respective Affiliates.
	 
	 	 	“Allocable Indemnity Payment” means, in respect of any Put Share, an amount equal to (a) the
aggregate indemnity payments made by the Warrantors to the Buyer under this Deed which have
resulted in a reduction in the purchase price of the Put Shares in accordance with
International Financial Reporting Standards divided by (b) the total number of Put Shares
held by the Buyer.
	 
	 	 	“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for
general business in Hong Kong and the People’s Republic of China.
	 
	 	 	“Completion” means completion of an exercise of the option to buy some or all of the Option
Shares in accordance with this Deed.
	 
	 	 	“Compliance with Financing Agreements” has the meaning given to it in Clause 10.1.3 (Put
Option).

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	 	 	“Early Put Option Trigger Event” means any of the following events or circumstances:

	 	(a)	 	the FEEL Shareholders do not comply with any provision in Clause 2 of the FEEL Shareholders
Undertakings;
	 
	 	(b)	 	the Seller does not comply with any provision in Clause 13.3 of the Shareholders’
Agreement;
	 
	 	(c)	 	the Seller or the Company does not comply with any provision in Clause 13.4 of the
Shareholders’ Agreement; or
	 
	 	(d)	 	any of the Seller, the Company or MIE commences a voluntary case under any applicable
bankruptcy, insolvency, reorganization, rehabilitation, compulsory composition or other
similar law now or hereafter in effect, or consents to the entry of an order for relief in an
involuntary case under any such law, or consents to the appointment or taking possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of any of
them or for any substantial part of its property, or ceases to carry on the whole or
substantially the whole of its business or makes any general assignment for the benefit of
creditors, or enters into any composition with its creditors, or takes corporate action in
furtherance of any such action.

	 	 	“Election Notice” has the meaning given to it in Clause 10.1.2 (Put Option).
	 
	 	 	“Encumbrance” means a mortgage, charge, pledge, assignment by way of security, lease, easement,
servitude, deposit arrangement, lien (statutory or other), option, restriction, financing or
similar statement or notice filed under any recording or notice statute, preference, right of
first refusal, right of pre-emption, third-party right or interest, other encumbrance or security
interest of any kind, or another type of preferential arrangement (including, without limitation,
a title transfer, retention arrangement, or conditional sale) having similar effect.
	 
	 	 	“Escrow Shares” has the meaning given to it in Clause 11.2.2 (Initial Public Offering).
	 
	 	 	“Fair Value” means the fair value of any Put Share as of the date of the Put Exercise Notice, as
agreed between the Buyer and the Seller, or in the absence of any such agreement within 15 days of
the date of the Put Exercise Notice, as determined (based on the assumption that the Put Shares
(or the Preferred Shares), on an as-converted basis, have the same per-share value as fully paid
up Ordinary Shares, and that the Company is a going concern and attributing no discount for the
fact that the Put Shares represent a minority interest) by an independent international evaluator
(who shall make such determination within 30 days after the date of selection, and whose decision,
in the absence of manifest error, shall be final and binding on the Buyer and the Seller),
mutually agreed between the Buyer and the Seller (or in the absence of such agreement, selected by
the Buyer from three independent international evaluators nominated by the Seller), with
significant experience in valuation of international oil and gas businesses and shall take into
account equity market comparables at the time on Recognised Stock Exchanges.
	 
	 	 	“FEEL Shareholders” means Zhang, Zhao and Shang.

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	 	 	“FEEL Shareholders Undertakings” has the meaning given in the SPA.
	 
	 	 	“Final Completion” means the Completion following which the Option Value becomes $0.
	 
	 	 	“First Amendment and Restatement Deed” means the amendment
and restatement deed dated
[          ] between
the parties hereto which amended and restated this Deed with effect from the First Effective Date.
	 
	 	 	“First Effective Date” has the meaning given to such term in the First Amendment and Restatement
Deed.
	 
	 	 	“General Warranty Expiration Date” means the date falling on the earlier of (a) the expiration
date of the lock-up period applicable to the Buyer following the Qualified IPO and (b) the date
falling 36 months from the date of “Completion” (as defined in the TPG SPA).
	 
	 	 	“GOC” means Global Oil Corporation.
	 
	 	 	“Governmental Authority” means any national or local government (whether domestic or foreign), any
political subdivision thereof or any other governmental, quasi-governmental, juridical, public,
regulatory, legislative or statutory instrumentality, authority, body, agency, department, bureau
or entity (including any zoning authority or any comparable authority) or any arbitrator with
authority to bind a Person at law.
	 
	 	 	“Indemnity Cap” means an amount equal to 45% of the Option Value.
	 
	 	 	“Indonesia JVs” means:

	 	(a)	 	PT. MI Energy Indonesia, a limited liability company domiciled in Jakarta and formed in 2007
by MIE, Sinofar Limited (a company domiciled in Singapore), Mr. Zhang Huien, Mr. Zhang Ruilin
and PT. Sartika Raya (a company domiciled in Jakarta);
	 
	 	(b)	 	a joint venture established pursuant to a joint venture agreement dated May 3, 2007 between
PT. MI Energy Indonesia and PT. Petro Muba;
	 
	 	(c)	 	a joint venture established pursuant to a joint venture agreement dated 2007 between PT. MI
Energy Indonesia and Perusahaan Daerah Sarana Pembangunan Muara Enim; and
	 
	 	(d)	 	PT. Excel Delight International Energy, a limited liability company domiciled in Jakarta and
formed in 2007 by MIE, Darfield International Limited, Zhang Huien, Zhang Ruilin and PT.
Sartika Raya.

	 	 	“Instalment Purchase” has the meaning given to it in Clause 10.1.2 (Put Option).

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	 	 	“IPO Application Date” means the date on which an application is first submitted to a Recognised
Stock Exchange to list shares of the Company on such Recognised Stock Exchange in connection with
a proposed Qualified IPO, provided that at least 60 days prior to such date:

	 	(a)	 	the Buyer is given written notice of the Company’s intention to submit such application on
that date;
	 
	 	(b)	 	the Seller notifies the Buyer of the identity of its advisers in connection with such
proposed Qualified IPO; and
	 
	 	(c)	 	the Seller provides the Buyer with a timetable (agreed between the Company and its advisers
in connection with the proposed Qualified IPO) for the listing of shares in the Company in
connection with the proposed Qualified IPO,

	 	 	and further provided that such application to the Recognised Stock Exchange is in fact submitted
on such date.
	 
	 	 	“IPO Return Deficiency” has the meaning given to it in Clause 11.2.1 (Initial Public Offering).
	 
	 	 	“Losses” means any damages, deficiencies, losses (including loss of value of the Option Shares
purchased by the Buyer pursuant to this Deed), costs, liabilities and expenses.
	 
	 	 	“Microbes” means Microbes, Inc.
	 
	 	 	“Option” means the rights granted to the Buyer by Clause 2 (Grant of Option to Buy Shares).
	 
	 	 	“Option Notice” means a written notice in the form (or substantially the form) set out in Schedule
1 from the Buyer to the Seller exercising the Option pursuant to Clause 2
(Grant of Option to Buy Shares).
	 
	 	 	“Option Period” means the period commencing on and from (i) in the case of paragraphs (a) and (b)
below, the date falling six months from the date of this Deed, and (ii) in the case of paragraph
(c) below, the date of this Deed, to and including the earliest of:

	 	(a)	 	the day preceding the date falling 36 months after the SPA Completion;
	 
	 	(b)	 	the date falling 30 days prior to the IPO Application Date; and
	 
	 	(c)	 	the date falling two months after the consummation of the Preferred Shares Transaction.

	 	 	“Option Price” means an amount in dollars calculated based on the following formula:

Requested Shares x Strike Price

	 	 	“Option Shares” means the Ordinary Option Shares or the Preferred Option Shares, as the case may
be.

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	 	 	“Option Value” means, at any time, $8,000,000 less the aggregate of the Option Prices paid by the
Buyer to the Seller in connection with each Completion prior to such time.
	 
	 	 	“Ordinary Shares” means the ordinary shares of the Company, par value $0.01 each.
	 
	 	 	“Ordinary Option Shares” means, at any time, the number of Ordinary Shares calculated on the basis
of the following formula:

Option Value  

Ordinary Shares Strike Price

	 	 	rounded up to the nearest share.
	 
	 	 	“Ordinary Shares Strike Price” means $26.00.
	 
	 	 	“Party” means a party to this Deed and “Parties” means all of them.
	 
	 	 	“Per Share IPO Price” has the meaning given to it in Clause 11.2.1 (Initial Public Offering).
	 
	 	 	“Person” means any natural person, individual, partnership, joint venture, company, corporation,
trust, estate, juridical entity, firm, association, statutory body, unincorporated organization,
or Governmental Authority or any other entity whether acting in an individual, fiduciary or other
capacity.
	 
	 	 	“PRC” means the People’s Republic of China.
	 
	 	 	“Preferred Shares” means the first series of preferred shares of the Company purchased and sold in
a Preferred Shares Transaction.
	 
	 	 	“Preferred Option Shares” means, at any time, the number of Preferred Shares calculated on the
basis of the following formula:

Option Value 

Preferred Shares Strike Price

	 	 	rounded up to the nearest share.
	 
	 	 	“Preferred Shares Strike Price” means the purchase price per Preferred Share under the Preferred
Shares Transaction.
	 
	 	 	“Preferred Shares Transaction” means the first sale and purchase of Preferred Shares in the Company
after the date of this Deed, provided that the aggregate purchase price for such Preferred Shares
is not less than $20,000,000 and further provided that such sale and purchase is completed on or
prior to the date falling 30 days prior to the IPO Application Date.
	 
	 	 	“Proceeding” means any action, arbitration, audit, hearing, investigation, litigation, or suit
(whether civil, criminal, administrative, investigative, or informal) commenced, brought,
conducted, or heard by or before, or otherwise involving, any Governmental Authority or arbitrator.
	 
	 	 	“Put Exercise Notice” has the meaning given to it in Clause 10.1.1 (Put Option).

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	 	 	“Put Option” has the meaning given to it in Clause 10.1.1 (Put Option).
	 
	 	 	“Put Option Period” means the period commencing on the earlier of (i) the day following the date
falling 24 months after “Completion” (as defined in the TPG SPA) and (ii) date of the occurrence
of an Earlier Put Option Trigger Event and ending on the earlier of (A) the day following the date
falling 60 months after “Completion” (as defined in the TPG SPA) and (B) the closing date of the
Qualified IPO in accordance with the provisions of Clause 11.2 (Initial Public Offering) of this
Agreement.
	 
	 	 	“Put Price” means a price per Put Share equal to the greater of:

	 	(a)	 	the Fair Value of such Put Share as of the date of the Put Exercise Notice; and
	 
	 	(b)	 	an amount equal to the sum of (i) the difference between the aggregate of the Option Prices
paid by the Buyer to the Seller in connection with each Completion under this Deed divided by
the number of Preferred Shares issued to or purchased by the Buyer in connection with all
Completions under this Deed plus (ii) 15% per annum on such amount compounded on an annual
basis from the date of the relevant Completion on which such Put Share was issued or purchased
through the date of the Put Exercise Notice (such greater amount, the “Base Put Amount”),

	 	 	less:

	 	(i)	 	the aggregate amount of any and all distributions made in respect of such Put
Share plus 15% per annum from the date of such distribution compounded on an annual basis
through the date of the Put Exercise Notice

	 	 	less:

	 	(ii)	 	the Allocable Indemnity Payment in respect of such Put Share plus 15% per annum from the date
of such payment compounded on an annual basis through the date of the Put Exercise Notice,

	 	 	plus interest on the Base Put Amount at 15% per annum compounded on an annual basis from the date
of the Put Exercise Notice through the date on which such Put Shares are purchased and fully paid.
	 
	 	 	“Put Purchase Date” has the meaning given to it in
Clause 10.1.2 (Put Option).
	 
	 	 	“Put Return Deficiency” has the meaning given to it in
Clause 10.1.3 (Put Option).
	 
	 	 	“Put Return Deficiency Payment Date” has the
meaning given to it in Clause 10.1.3 (Put Option).
	 
	 	 	“Put Shares” has the meaning given to it in Clause 10.1.1 (Put Option).
	 
	 	 	“Qualified IPO” has the meaning given in the SPA.
	 
	 	 	“Recognised Stock Exchange” has the meaning given in the SPA.

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	 	 	“Refinancing Letter Agreement” means a letter agreement dated 19 June 2009 among MIE, the Company,
FEEL and TPG.
	 
	 	 	“Restated Articles” means the Amended and Restated Memorandum and Articles of the Company, in the
form set out in Exhibit A to the amendment agreement to the SPA dated [     ] June 2009.
	 
	 	 	“Requested Shares” has the meaning given to it in Clause 3.2 (Exercise of Option).
	 
	 	 	“SAFE” means the State Administration of Foreign Exchange of the PRC including its successors.
	 
	 	 	“SB Anticipated IPO Return” has the meaning given to it in Clause 11.2.1 (Initial Public Offering).
	 
	 	 	“Shang” means Shang Zhiguo, PRC passport number G18197033.
	 
	 	 	“Share Charge” has the meaning given to it in Clause 11.1 (Security for claims).
	 
	 	 	“Shareholders’ Agreement” has the meaning given in the SPA.
	 
	 	 	“Shares” means the Ordinary Shares and any other shares of the Company, whether fully or partly
paid.
	 
	 	 	“Single Purchase” has the meaning given to it in Clause 10.1.2 (Put Option).
	 
	 	 	“SPA” means the shares purchase agreement dated 12 January 2009 and entered into between the
Buyer, Zhang Ruilin, Zhao Jiangwei, Shang Zhiguo and the Seller in relation to the sale by the
Seller and the purchase by the Buyer of 197,049 ordinary shares in the capital of the Company, as
the same may be amended, restated, consolidated, supplemented, novated or replaced from time to
time.
	 
	 	 	“SPA Completion” has the meaning given to “Completion” in the SPA.
	 
	 	 	“Specific Indemnities” has the meaning given to it in Clause 9.1.
	 
	 	 	“Standard Bank Facility” means the Borrowing Base Facility Agreement dated 29 October 2007 by and
between MIE, Standard Bank Asia Limited, as Arranger, Agent, Security Trustee and Technical Bank,
Standard Bank PLC as the Offshore Account Bank and the Original Lenders (as such term is defined
therein), as amended, and any agreement to renew, replace or repay any amounts outstanding under
the Standard Bank Facility pursuant to the Refinancing Letter Agreement.
	 
	 	 	“Strike Price” means the Ordinary Shares Strike Price or the Preferred Shares Strike Price, as the
case may be.
	 
	 	 	“Third Party Claim” has the meaning given to it in Clause 9.2.1 (Procedure for Indemnification
(Third Party Claims)).
	 
	 	 	“TPG” means TPG Star Energy Limited, an exempted company incorporated with limited liability in
the Cayman Islands, and/or one or more of its Affiliates.

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	 	 	“TPG SPA” means the Series A Preferred Shares Subscription and Put Option Agreement dated
as of June 19, 2009 by and among TPG, the Seller, the Company and MIE.
	 
	 	 	“Unpaid IPO Return Deficiency Amount” has the meaning given to it in Clause 11.2.2 (Initial
Public Offering).
	 
	 	 	“Warrantors” means the Company and the Seller.
	 
	 	 	“Warranty” means a statement contained in
Schedule 2 and “Warranties” means all those statements.
	 
	 	 	“Zhang” means Zhang Ruilin, PRC passport
number G18206054.
	 
	 	 	“Zhao” means Zhao Jiangwei, PRC passport
number G11875117.

	1.2	 	In this Deed, a reference to:

	 	1.2.1	 	a Clause, paragraph or Schedule, unless the context otherwise requires, is a
reference to a clause or paragraph of, or schedule to, this Deed;
	 
	 	1.2.2	 	a reference to any agreement or document is a reference to that agreement or
document as amended, restated, consolidated, supplemented, novated or
replaced from time to time; and
	 
	 	1.2.3	 	“$” and “dollars” denote the lawful currency of the United States of America.

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

	2.	 	GRANT OF OPTION TO BUY SHARES
	 
	2.1	 	In consideration of the sum of $1 (the sufficiency of which the Seller hereby acknowledges),
the Seller irrevocably grants to the Buyer an option to buy and to require the Seller to
transfer to the Buyer (and/or such person(s) as the Buyer directs) (i) if the Company does not
issue any Preferred Shares pursuant to a Preferred Shares Transaction during the Option
Period, all or any of the Ordinary Option Shares, or (ii) if the Company issues any Preferred
Shares pursuant to a Preferred Shares Transaction during the Option Period, any or all of the
Preferred Option Shares.
	 
	2.2	 	The Option Shares shall be sold with full title guarantee free from any Encumbrance and with
all rights attaching to the Option Shares at the date of the relevant Completion.
	 
	3.	 	EXERCISE OF OPTION
	 
	3.1	 	The Option may be exercised only by the delivery by the Buyer to the Seller of an Option
Notice at any time during the Option Period.
	 
	3.2	 	The Option Notice must specify the date of Completion, which must be a Business Day not less
than three Business Days after the delivery of the relevant Option Notice (notwithstanding
that such Business Day may fall outside the Option Period) and the number of Option Shares to
which the Option Notice relates (the “Requested Shares”).

-8-

 

	3.3	 	The Option may be exercised by the Buyer in whole or in part and, if in part, on any
number of occasions.
	 
	3.4	 	For the avoidance of doubt, the total number of outstanding Shares shall not change as a
result of the transactions contemplated under Clause 2 (Grant of option to buy Shares) or this
Clause 3.
	 
	4.	 	CANCELLATION OF OPTION
	 
	 	 	If the Buyer has not submitted an Option Notice prior to such time, the Option shall be
automatically cancelled in full on the last day of the Option Period.
	 
	5.	 	COMPLETION
	 
	5.1	 	Completion shall take place by 3.00 p.m. on the date specified in the Option Notice at the
offices of the Buyer’s legal advisers, or at another time or place agreed by the Seller and
the Buyer.
	 
	5.2	 	At Completion:

	 	5.2.1	 	the Seller shall deliver to the Buyer the documents specified in Schedule 3
(Completion Requirements);
	 
	 	5.2.2	 	the Seller shall sign all documents and take all other action necessary to
enable the Buyer (and/or such other person as the Buyer directs) to become the
registered and beneficial owner of the Requested Shares being transferred to the Buyer
(and/or such other person as the Buyer directs) including, without limitation, the use
of the voting and other rights arising by its holding of shares in the capital of the
Company and to ensure that the Buyer’s (and/or such other person’s) name is entered in
the register of members of the Company as the holder of those Requested Shares; and
	 
	 	5.2.3	 	the Buyer shall pay the Option Price to the Seller in accordance with Clause 6
(Payment of Option Price).

	5.3	 	The Buyer is not obliged to pay the Option Price unless:

	 	5.3.1	 	the Seller complies with all of its obligations under this Clause 5 and
Schedule 3 (Completion Requirements);
	 
	 	5.3.2	 	the transfer to the Buyer (and/or such other person as the Buyer directs) of
all of the relevant Requested Shares is completed simultaneously; and
	 
	 	5.3.3	 	all such consents and/or waivers as may be required under any applicable laws
and/or the Finance Documents for the transfer of the relevant Requested Shares to the
Buyer (and/or such other person as the Buyer directs) have been obtained in form and
substance satisfactory to the Buyer.

	5.4	 	If Completion does not take place on the date set for Completion pursuant to Clause 5.1
because the Seller fails to comply with any of its obligations under this Clause 5 (whether or
not such failure amounts to a repudiatory breach), the Buyer may, by notice to the Seller:

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	 	5.4.1	 	proceed to Completion to the extent reasonably practicable (but if the
Buyer exercises its option pursuant to this Clause 5.4.1, completion of the
purchase of some of the Requested Shares does not affect the Buyer’s rights in
connection with the other Requested Shares); or
	 
	 	5.4.2	 	postpone Completion to a date not more than ten Business Days after the date
set for Completion in Clause 5.1 (notwithstanding that such date may fall outside the
Option Period); or
	 
	 	5.4.3	 	terminate this Deed; or
	 
	 	5.4.4	 	revoke the relevant Option Notice, in which case the Requested Shares
specified in such Option Notice shall remain subject to the Option and may be included
in a new Option Notice.

	5.5	 	If the Buyer postpones Completion to another date in accordance with Clause 5.4.2, the
provisions of this Deed apply as if that other date is the date set for Completion in Clause
5.1.
	 
	5.6	 	If the Buyer terminates this Deed pursuant to Clause 5.4.3 or Clause 7 (Warranties), each
Party’s further rights and obligations cease immediately on termination, but termination does
not affect a Party’s accrued rights and obligations at the date of termination.
	 
	6.	 	PAYMENT OF OPTION PRICE
	 
	 	 	The Buyer shall pay the Option Price in cash into an account in the Seller’s name (as
notified by the Seller to the Buyer) for value on the date of the relevant Completion.
	 
	7.	 	WARRANTIES
	 
	7.1	 	The Seller warrants to the Buyer that each Warranty is true, accurate and not misleading at
the date of this Deed. On and immediately before Completion, the Seller is deemed to warrant
to the Buyer that each Warranty is true, accurate and not misleading by reference to the facts
and circumstances at the date of Completion. For this purpose an express or implied reference
in a Warranty to the “date of this Deed” is to be construed as a reference to the “date of
Completion”.
	 
	7.2	 	The Seller acknowledges that the Buyer is entering into this Deed in reliance on each
Warranty which has also been given as a representation and with the intention of inducing the
Buyer to enter into this Deed.
	 
	7.3	 	Between the date of this Deed and Final Completion, the Seller shall notify the Buyer
immediately if it becomes aware of any fact or circumstance which constitutes or which would
or might constitute a breach of Clause 7.1 or which would or might cause a Warranty to be
untrue, inaccurate or misleading if given in respect of the facts or circumstances at the date
the Seller becomes aware of the same.
	 
	7.4	 	If, at any time before Final Completion, the Buyer considers that the Seller is in breach of
any provision of this Deed (whether or not such breach amounts to a repudiatory breach) or if
the Seller gives a notice under Clause 7.3, the Buyer may, in its discretion, elect to proceed
to Completion in respect of all or any of the Option Shares by delivery

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	 	 	of an Option Notice or Option Notices in accordance with Clause 3 (Exercise of Option)
or terminate this Deed.

	7.5	 	If the Buyer terminates this Deed pursuant to Clause 7.4, the Seller shall indemnify the
Buyer, and keep the Buyer indemnified, on demand against all its costs, liabilities,
obligations, damages, expenses and losses however arising which the Buyer may suffer or incur
by reason of any breach of any provisions of this Deed by the Seller.
	 
	7.6	 	Each Warranty is to be construed independently and (except where this Deed provides
otherwise) is not limited by a provision of this Deed or another Warranty.
	 
	8.	 	UNDERTAKINGS
	 
	 	 	Until Final Completion, the Seller shall not (without having first obtained the Buyer’s
written consent):

	 	(a)	 	sell, transfer or otherwise dispose of any interest in any of the Option Shares
or any right attaching to the Option Shares (except as required pursuant to this Deed);
or
	 
	 	(b)	 	create or allow to be created any Encumbrance over the Option Shares (except
pursuant to the Transaction Security).

	9.	 	INDEMNITIES
	 
	9.1	 	Specific Indemnities
	 
	 	 	Subject to and as from each Completion, the Warrantors shall jointly and severally
indemnify and hold harmless the Buyer from and against any Losses whether arising before or
after such Completion to the extent resulting from:

	 	9.1.1	 	any claims made pursuant to or in connection with the Amendment to Stock
Purchase Agreement dated as of 19 May 2008 by and among Microbes, MIE and the Seller
against the Company or MIE (other than any claim that the Company did not loan to the
Seller $20,000,000 in time to enable the Seller to meet the payment amount payable
under such agreement), including Losses accrued against MIE prior to the date of the
First Amendment and Restatement Deed, and all other claims by Microbes against the
Company, MIE or the Buyer relating to Microbes’ investment in MIE. Any payment made
by MIE or the Company to Microbes (or its affiliated parties) shall be applied against,
and result in a reduction of, MIE’s liability vis-a-vis the Seller;
	 
	 	9.1.2	 	the arbitration proceedings brought by GOC on 14 May 2003 and 27 April 2004,
respectively, in relation to an operating agreement entered into between Microbes and
GOC dated 25 September 2000 and the subject matter of those proceedings;
	 
	 	9.1.3	 	Fullfame Enterprise Ltd.’s previous shareholding in MIE, including but not
limited to its rights to disproportionate dividend distributions and other
governance rights or otherwise, any rights granted pursuant to the cooperation
agreement and the share transfer agreement between the Seller, MIE and Fullfame
Enterprise Ltd. dated 30 June 2005 and 22 September 2005

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	 	 	 	respectively, and any claims brought by current or previous holders or beneficial
owners of shares in, or directors of, Fullfame Enterprise Ltd. (or by anyone who
alleges to be such a person);

	 	9.1.4	 	any contravention of laws or regulation in the PRC by MIE or the Seller
relating to loans, guarantees given by Zhang, debt settlements, or transactions having
similar effect made between MIE, the Company, the Seller and/or Zhang or any other
national or resident of the PRC;
	 
	 	9.1.5	 	the failure or delay by the Company or MIE or any of the current or previous
holders or owners of shares or other securities in the Seller, the Company or MIE in
obtaining any required SAFE registrations or approvals (including roundtripping
approvals);
	 
	 	9.1.6	 	any claim for taxes of MIE (which term shall cover taxes and duties of any
kind, amounts withheld on account of taxation of any person, social security charges
and similar, fines and late payment interest charges and penalties, duties, and
claw-back of relief previously granted) that were incurred, or which relate to any
period, prior to the date of any Completion and not paid by MIE before such date, save
to the extent provided for as a specific accrual in the 2008 Accounts or in any
management accounts relating to a period after 31 December 2008 which have been
provided to the Buyer prior to the date of the First Amendment and Restatement Deed
and save for taxation accruing in the ordinary course on MIE’s trading activities
undertaken since 31 December 2008; and
	 
	 	9.1.7	 	MIE’s direct or indirect interests in any of the Indonesia JVs, including but
not limited to any claims against MIE in relation to (i) any operations, business,
assets, liabilities or obligations of any of the Indonesia JVs, (ii) MIE’s obligation
to provide any funds or financial assistance of any kind to any of the Indonesia JVs
or any third parties in connection with MIE’s investment in the Indonesia JVs and/or
(iii) any termination, liquidation or winding-up of MIE’s direct or indirect interests
in any of the Indonesia JVs

	 	 	(collectively, the “Specific Indemnities”); provided, however, that the Warrantors shall
have no obligation to indemnify or hold harmless the Buyer for any such claims to the extent
that the aggregate amount of Losses in respect of (i) the Specific Indemnities for which the
Warrantors would otherwise be liable and (ii) any breach of the Warranties exceeds the
Indemnity Cap.
	 
	9.2	 	Procedure for Indemnification (Third Party Claims)

	 	9.2.1	 	If the Buyer receives written notice of the commencement of any Proceeding by
a third party (a “Third Party Claim”), and the Buyer intends to seek indemnity
pursuant to this Clause 9, the Buyer shall as promptly as practicable provide each
Warrantor with notice in writing of the Third Party Claim; provided, however, that no
delay on the part of the Buyer in notifying such Warrantor will relieve such Warrantor
from any obligation hereunder unless (and then solely to the extent) such Warrantor is
materially and actually prejudiced as a result

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	 	 	 	thereof. Such Warrantor shall be entitled to assume the defence of such Third Party Claim
at its own expense; provided that such Warrantor shall not be entitled to assume the
defence of a Third Party Claim to the extent that the Buyer reasonably determines that it
has defences, claims or positions that are unique, separate or distinct from the
defences, claims or positions that might be available to other Persons relating to such
Third Party Claim (such as jurisdictional defences). Such defence shall be conducted
through counsel selected by such Warrantor, which counsel shall be satisfactory to the
Buyer. Should such Warrantor so elect to assume the defence of a Third Party Claim, such
Warrantor will not be liable to the Buyer for any legal or other expenses subsequently
incurred by the Buyer in connection with the defence thereof. If such Warrantor is
conducting the defence of the Third Party Claim, the Buyer shall be entitled, at its own
expense, to retain separate counsel and participate in the defence of such Third Party
Claim. Such Warrantor will keep the Buyer informed of all material developments relating
to or arising in connection with such Third Party Claim.

	 	9.2.2	 	In the event that (i) the relevant Warrantor(s) fail to so assume the defence of any Third
Party Claim within 30 days after receipt of notice thereof from the Buyer, (ii) the relevant
Warrantor(s) and the Buyer are both parties to or subjects of the proceedings and the Buyer
shall have reasonably concluded that representation of both parties by the same counsel would
be inappropriate due to an actual or potential conflict of interest between them or (iii) in
any event, to the extent the Third Party Claim seeks an order, injunction, non-monetary or
other equitable relief against the Buyer which, in the reasonable judgment of the Buyer, if
successful, is reasonably likely to establish a precedential custom or practice that is
materially detrimental to the continuing business interests of the Buyer, the Buyer shall have
the right to undertake the defence of such Third Party Claim and, if such Third Party Claim is
one for which the Buyer is entitled to be indemnified under this Clause 9, such defence of
such Third Party Claim shall be at the expense and for the account of the Warrantors.
	 
	 	9.2.3	 	Each Warrantor shall be required to obtain the prior written consent of the Buyer (such
consent not to be unreasonably withheld, delayed or conditioned) before consenting to any
judgment, entering into or making any settlement, compromise or discharge of any Third Party
Claim or any liability in respect thereof.
	 
	 	9.2.4	 	Each Warrantor shall not be entitled to control (but shall be entitled to participate at its
own expense in) the defence of any Third Party Claim as to which such Warrantor fails to
assume the defence within 30 days after receipt of notice thereof from the Buyer; provided,
however, that the Buyer shall make no settlement, compromise, discharge, admission, or
acknowledgment that would give rise to any liability on the part of any Warrantor without the
prior written consent of such Warrantor (such consent not to be unreasonably withheld, delayed
or conditioned).

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	 	9.2.5	 	The reimbursement of fees, costs and expenses required by this Clause 9
shall be made by periodic payments during the course of the investigation or
defence, as and when bills are received or expenses incurred.

	9.3	 	Procedure for Indemnification (Direct Claims)
	 
	 	 	In any case in which the Buyer seeks indemnification hereunder which is not subject to
Clause 9.2 (Procedure for Indemnification (Third Party Claims)) because no Third Party
Claim is involved, the Buyer shall notify each Warrantor in writing as promptly as
reasonably practicable of any Losses which the Buyer claims are subject to indemnification
under the terms hereof. The failure of the Buyer to exercise promptness in such
notification shall not amount to a waiver of such claim unless and to the extent the
resulting delay materially and actually prejudices the position of such Warrantor with
respect to such claim.
	 
	10.	 	PUT OPTION
	 
	10.1	 	Put Option

	 	10.1.1	 	At any time during the Put Option Period, the Buyer shall have the option,
exercisable in its sole discretion and exercisable only once (the “Put Option”), to
require the Seller to purchase some or all of the Option Shares purchased by the Buyer
pursuant to this Deed (the “Put Shares”) and then owned by the Buyer (at the Put Price
multiplied by the applicable number of Put Shares) by delivering written notice thereof
to the Seller (with a copy to MIE and the Company) (the “Put Exercise Notice”)
specifying the number of Put Shares to be purchased. The Seller shall pay the aggregate
Put Price for the Put Shares to the Buyer in full within one year of the date of the
Put Exercise Notice. MIE and the Company shall be jointly and severally liable with
the Seller for the obligations of the Seller set forth in this Clause 10.
	 
	 	10.1.2	 	Upon delivery by the Buyer of the Put Exercise Notice, the Seller shall elect whether
it wishes to purchase the Put Shares (i) in one instalment (a “Single Purchase”) or
(ii) in three evenly spaced instalments (with the instalments being as nearly as
practicable of equal numbers of Put Shares and the final instalment being on a date no
later than one year after the date of the Put Exercise Notice) (an “Instalment
Purchase”). The first instalment in an Instalment Purchase shall be made no later
than 90 days after the date of the Put Exercise Notice.
	 
	 	 	 	No later than 10 days after the date of the Put Exercise Notice, the Seller shall
notify the Buyer by written notice (the “Election Notice”) of (x) the election of a
Single Purchase or an Instalment Purchase, (y) if the Seller elects an Instalment
Purchase, the dates of each instalment (each, a “Put Purchase Date”) and the number
of Put Shares to be purchased on each Put Purchase Date, and (z) the time and place
in Beijing for the closing of the sale and purchase of the Put Shares to be sold on
each Put Purchase Date.
	 
	 	 	 	No later than five days after the date on which the Put Price must be finally
determined in accordance with this Deed, the Seller shall notify the Buyer by

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	 	 	 	written notice of the Put Price payable on each Put Purchase Date, together
with details of the method of calculation of the Put Price.

	 	 	 	If the Seller elects a Single Purchase or an Election Notice is not given in
accordance with the foregoing provisions, the Seller shall be deemed to have
elected a Single Purchase on such date (which shall be treated as the Put Purchase
Date but which shall not be later than five days after the date on which the Put
Price must be finally determined in accordance with this Deed) and at such time
and place in Beijing as the Buyer shall notify the Seller (with a copy to MIE and
the Company).
	 
	 	10.1.3	 	Notwithstanding any other provisions in this Deed, if the aggregate Put Price for
the Put Shares has not been paid to the Buyer in full within one year after the date
of the Put Exercise Notice:

	 	(a)	 	the Buyer shall first sell, transfer or assign any
unpurchased Put Shares to any third party notwithstanding the provisions in
Clauses 2.1, 2.2, and 2.3 of the Shareholders’ Agreement;
	 
	 	(b)	 	if the net proceeds from the sale by the Buyer of unpurchased
Put Shares are less than the aggregate Put Price of the unpurchased Put Shares
plus any additional Losses the Buyer may incur as a result of such failure by
MIE, the Company and/or the Seller to pay the aggregate Put Price of the
unpurchased Put Shares (such deficiency, the “Put Return Deficiency”), the
Buyer’s rights under the Share Charges shall then become immediately
enforceable solely for the purpose of recovering the amount of the Put Return
Deficiency, including but not limited to the right to exercise the power of
sale and all other powers, rights and benefits conferred by law and the Share
Charges; and
	 
	 	(c)	 	if the net proceeds recovered pursuant to paragraph (b)
above are insufficient for the Buyer to recover the Put Return Deficiency,
then the Seller, MIE and the Company shall jointly and severally indemnify the
Buyer for the unpaid amount of the Put Return Deficiency (the date on which
any such unpaid amount is paid to the Buyer, the “Put Return Deficiency
Payment Date”), to the extent that any of the Seller, MIE and the Company has
from time to time lawfully available funds to do so and that it will be in
compliance (after paying such unpaid amount) with all of the terms of the
Standard Bank Facility under which it has outstanding obligations on the
relevant Put Return Deficiency Payment Date (“Compliance with
Financing Agreements”) provided, that if any of the Seller, MIE and the
Company does not fulfil its obligations to pay any part of such unpaid amount
of the Put Return Deficiency on the relevant Put Return Deficiency Payment
Date as a result of the application of the restrictions set forth in this
paragraph (c), it shall remain subject to the obligation to pay the balance of
the Put Return Deficiency as soon as it is able to pay in a manner that
complies with such restrictions.

	10.2	 	Completion

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	 	10.2.1	 	A Put Share shall only be transferred to the Seller if and to the extent
that the relevant Put Price for such Put Share has been paid in full, and until
payment of the relevant Put Price has been made in full, the Buyer shall maintain
all its right, title and interest in such Put Share.
	 
	 	10.2.2	 	On or before the relevant Put Purchase Date, the Buyer shall surrender the
certificate or certificates representing the Put Shares to be purchased on such Put
Purchase Date (or, if the Buyer alleges that such certificate has been lost, stolen or
destroyed, a lost certificate affidavit and agreement reasonably acceptable to the
Company to indemnify the Company against any claim that may be made against the Company
on account of the alleged loss, theft or destruction of such certificate) to the
Seller, MIE or the Company, in the manner and at the place designated in the Election
Notice against payment in full of the relevant Put Price in immediately available funds
to the order of the Buyer. In the event that less than all of the Preferred Shares
represented by a certificate are purchased, a new certificate representing the balance
of the unsold Preferred Shares shall promptly be issued to the Buyer by the Company and
a certificate for the Put Shares so purchased shall be issued to the Seller, MIE or the
Company (as the case may be).

	11.	 	COVENANTS
	 
	11.1	 	Security for Claims.
	 
	 	 	At each Completion, the Seller shall charge by way of first ranking charge a number of
Ordinary Shares equal in number to 96.226446% of the number of Preferred Shares the Buyer
purchases at such Completion (rounded off to the nearest Ordinary Share), in the form
attached hereto as Schedule 4 (Form of Share Charge) (or in such other form as may be
acceptable to the Buyer), in favour of the Buyer (each such first ranking charge, a “Share
Charge”) as security for the indemnities contained in
Clauses 9 (Indemnities) and 10 (Put
Option). The foregoing security shall be released at the later to occur of (i) the General
Warranty Expiration Date, (ii) the final settlement of all claims from the Buyer which may
be outstanding on such General Warranty Expiration Date in respect of the indemnities under
Clauses 9 (Indemnities), and (iii) the payment of the Put Return Deficiency.
	 
	11.2	 	Initial Public Offering

	 	11.2.1	 	If the final price per Ordinary Share of the Company in the Qualified IPO (the “Per
Share IPO Price”) multiplied by the total number of Ordinary Shares which the Buyer
would hold (on an as-converted basis in accordance with the Restated Articles) upon
the Qualified IPO is less than the sum of (i) the difference between the aggregate of
the Option Prices paid by the Buyer to the Seller in connection with each Completion
under this Deed, plus (ii) 30% per annum on such amount compounded on an annual basis
from the date of the relevant Completion through the closing date of the Qualified IPO
(the “SB Anticipated IPO Return”), the Company shall compensate the Buyer for such
deficiency (the “IPO Return Deficiency”). MIE and the Seller shall be jointly

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	 	 	 	and severally liable with the Company for the obligations of the Company set forth in this
Clause 11.2.

	 	11.2.2	 	The obligations of the Company, MIE and/or the Seller to compensate the Buyer for the IPO
Return Deficiency shall be satisfied in the following manners and order of priority:

	 	(a)	 	first, prior to the execution of the underwriting agreement, the Company
and/or MIE shall pay in cash an amount equal to the IPO Return Deficiency plus any
costs and expenses of the escrow account in an escrow account for the benefit of the
Buyer with an escrow agent which shall be irrevocably instructed to transfer the IPO
Return Deficiency amount by wire transfer of immediately available funds in dollars
to an account specified by the Buyer immediately upon the closing of the Qualified
IPO without the need for any further action or instruction on the part of any Person;
	 
	 	(b)	 	second, if any of the IPO Return Deficiency amount is not paid to the
escrow account in accordance with paragraph (a) above prior to the execution of the
underwriting agreement (the “Unpaid IPO Return Deficiency Amount”), the Seller shall,
prior to the execution of the underwriting agreement, pay in cash an amount equal to
the Unpaid IPO Return Deficiency Amount (or in lieu thereof or in combination
therewith, deposit the number of Ordinary Shares equal to the Unpaid IPO Return
Deficiency Amount divided by the Per Share IPO Price (rounded up to the nearest
share, the “Escrow Shares”) along with all transfer documents reasonably requested by
the Buyer or the escrow agent to effect the transfer of a valid and marketable title
in the Escrow Shares to the Buyer in accordance therewith) plus any costs and
expenses in escrow for the benefit of the Buyer with an escrow agent which shall be
irrevocably instructed to transfer the Unpaid IPO Return Deficiency Amount or the
Escrow Shares to the Buyer (or any nominees nominated by the Buyer) immediately upon
closing of the Qualified IPO without the need for any further action or instruction
on the part of any Person;
	 
	 	(c)	 	third, if any of the IPO Return Deficiency amount is not paid to the escrow
account in accordance with paragraph (a) and/or (b) above prior to the execution of
the underwriting agreement, the Company shall (x) include in the underwriting
agreement a provision stating that part of the proceeds from the Qualified IPO
equal to the Unpaid IPO Return Deficiency Amount plus any costs and expenses of
the escrow account shall be placed in an escrow account for the benefit of the Buyer
with an escrow agent acceptable to the Buyer which shall be irrevocably
instructed to transfer the Unpaid IPO Return Deficiency Amount by wire transfer of
immediately available funds in dollars to an account specified by the Buyer
immediately upon the closing of the Qualified IPO without the need for any further
action or instruction on the part of any Person, and (y) undertake to and with the
other parties to the underwriting

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	 	 	 	agreement to do all things reasonably within its power which are necessary
or reasonably desirable to give full effect to the provision in the
underwriting agreement referred to in sub-paragraph (x) above.

	 	11.2.3	 	The Company, MIE and/or the Seller shall bear any and all costs and expenses of any
escrow account or escrow agent referred to in this Clause 11.2. The Buyer shall select
the escrow agent referred to in this Clause 11.2 (upon reasonable consultation with
the Company).

	12.	 	GENERAL
	 
	12.1	 	A variation of this Deed is valid only if it is in writing and signed by or on behalf of each
Party.
	 
	12.2	 	The failure to exercise or delay in exercising a right or remedy provided by this Deed or by
law does not impair or constitute a waiver of the right or remedy or an impairment of or a
waiver of other rights or remedies. No single or partial exercise of a right or remedy
provided by this Deed or by law prevents further exercise of the right or remedy or the
exercise of another right or remedy.
	 
	12.3	 	The Buyer’s rights and remedies contained in this Deed are cumulative and not exclusive of
rights or remedies provided by law.
	 
	12.4	 	Each date, time or period referred to in this Deed is of the essence. If the Parties agree in
writing to vary a date, time or period, the varied date, time or period is of the essence.
	 
	12.5	 	Except to the extent that they have been performed and except where this Deed provides
otherwise the obligations contained in this Deed remain in force after Final Completion and
this Deed shall terminate automatically upon the performance in full of such obligations.
	 
	12.6	 	A person who is not a Party to this Deed has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce any term of this Deed but this does not affect any right or
remedy of a third party which exists or is available apart from that Act.
	 
	12.7	 	This Deed supersedes any previous written or oral agreement between the Parties in relation
to the matters dealt with in this Deed and contains the entire agreement between the Parties
relating to the subject matter of this Deed at the date hereof to the exclusion of any terms
implied by law which may be excluded by contract.
	 
	12.8	 	The Seller shall bear all costs and expenses (including taxes and duties) in relation to this
Deed.
	 
	13.	 	ASSIGNMENT
	 
	13.1	 	The Seller may not (and may not purport to) assign or transfer or declare a trust of the
benefit of or in any other way alienate any of its rights under this Deed in whole or in part
without having first obtained the Buyer’s written consent.
	 
	13.2	 	The Buyer may assign its rights or transfer its rights and obligations under this Deed and
the Seller agrees, at its own cost, to do all acts and things as may be required by the Buyer
to effect any such assignment or transfer.

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	14.	 	NOTICES
	 
	14.1	 	Communications in writing
	 
	 	 	Any communication to be made under or in connection with this Deed shall be made in writing
and, unless otherwise stated, may be made by fax or letter.
	 
	14.2	 	Addresses
	 
	 	 	The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with this Deed is as follows:

	 	 	 	 	 
	if to the Buyer, to

	 	:
	 	Standard Bank PLC

Cannon Bridge House

25 Dowgate Hill

London EC 4R 2SB

Fax: +852 2822 7947
	 
	 	 	 	 
	 

	 	 	 	Attention: John Wixley c/o Standard
Bank Asia Limited
	 
	 	 	 	 
	if to the Seller, the Company,
or MIE, to

	 	:
	 	Suite 406, Block C, Grand Place

5 Hui Zhong Road

Chaoyang District, Beijing 10010
PRC
	 
	 	 	 	 
	 

	 	 	 	Attention: Mr. Zhang Ruilin

Facsimile: (8610) 5123 8866,

		 	or any substitute address, fax number or department or officer as a Party may notify to the
other Party by not less than five Business Days’ notice.
	 
	14.3	 	Delivery

	 	14.3.1	 	Any communication or document made or delivered by one person to another under or in
connection with this Deed will only be effective:

	 	(a)	 	if by way of fax, when received in legible form; or
	 
	 	(b)	 	if by way of letter, when it has been left at the relevant
address or five Business Days after being deposited in the post postage
prepaid in an envelope addressed to it at that address,

	 	 	 	and, if a particular department or officer is specified as part of its address
details provided under Clause 14.2 (Addresses), if addressed to that department or
officer.
	 
	 	14.3.2	 	Any communication or document to be made or delivered to the Buyer will be effective
only when actually received by the Buyer and then only if it is expressly marked for
the attention of the department or officer identified with

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	 	 	 	the Buyer’s signature below (or any substitute department or officer as the Buyer
shall specify for this purpose).

	14.4	 	English language

	 	14.4.1	 	Any notice given under or in connection with this Deed must be in English.
	 
	 	14.4.2	 	All other documents provided under or in connection with this Deed must be:

	 	(a)	 	in English; or
	 
	 	(b)	 	if not in English, and if so required by the Buyer,
accompanied by a certified English translation and, in this case, the English
translation will prevail unless the document is a constitutional, statutory or
other official document.

	15.	 	GOVERNING LAW AND JURISDICTION
	 
	15.1	 	This Deed and all non-contractual obligations arising out of or in connection with it are
governed by English law.
	 
	15.2	 	The courts of England have exclusive jurisdiction to settle any dispute arising from or
connected with this Deed (a “Dispute”).
	 
	15.3	 	The Parties agree that the courts of England are the most appropriate and convenient courts
to settle any Dispute and, accordingly, that they will not argue to the contrary.
	 
	15.4	 	This Clause is for the benefit of the Buyer only. As a result it does not prevent the Buyer
from taking proceedings relating to a Dispute
(“Proceedings”) in any other court with
jurisdiction. To the extent allowed by law, the Buyer may take concurrent Proceedings in any
number of jurisdictions.
	 
	16.	 	COUNTERPARTS
	 
	 	 	This Deed may be executed in any number of counterparts, each of which when executed and
delivered is an original and all of which together evidence the same agreement.
	 
	17.	 	INVALIDITY
	 
	 	 	If at any time any provision of this Deed is or becomes illegal, invalid or unenforceable in
any respect under the law of any jurisdiction, that shall not affect or impair:

	 	17.1.1	 	the legality, validity or enforceability in that jurisdiction of any other provision
of this Deed; or
	 
	 	17.1.2	 	the legality, validity or enforceability under the law of any other jurisdiction of
that or another provision of this Deed.

IN WITNESS WHEREOF, this Deed has been signed by the Buyer and duly executed as a deed by the
Seller and is intended to be and is hereby delivered by it as a deed on the date specified above.

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SCHEDULE 1

Form of Option Notice

[BUYER’S LETTERHEAD]

			
	To:	 	Far East Energy Limited (the “Seller”)

[Address]

			
	Date:	 	[insert date]

OPTION NOTICE

	1.	 	We refer to the Option Agreement dated [     ] between Far East Energy Limited and Standard
Bank PLC (the “Option Agreement”).
	 
	2.	 	Terms defined in the Option Agreement shall have the same meanings in this Option Notice
unless the context requires otherwise. References to a Clause are to a clause of the Option
Agreement.
	 
	3.	 	The Buyer hereby notifies the Seller pursuant to Clause 3
(Exercise of Option) that it wishes
to exercise the Option granted in Clause 2.1 to buy [insert
number of shares required] Option
Shares at a Strike Price of $[     ], subject to the terms of the Option Agreement.
	 
	4.	 	The date of Completion shall be [insert date].

	 	 	 	 	 
	 	 	 
	
 	 	 
	Signed by [     ] 	 	 
	for and on behalf of

Standard Bank PLC 	 	 

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SCHEDULE 2

Warranties

	1.	 	CAPACITY AND AUTHORITY
	 
	1.1	 	Incorporation and existence
	 
	 	 	The Seller is a company established under the laws of Hong Kong and has been in continuous
existence since its establishment.
	 
	1.2	 	Right, power, authority and action

	 	1.2.1	 	The Seller has the right, power and authority, and has taken all action
necessary, to execute, deliver and exercise its rights, and perform its obligations,
under this Deed and each document to be executed at or before Completion or for the
exercise of the Option.
	 
	 	1.2.2	 	The Seller has the right, power and authority to conduct its business as
conducted at the date of this Deed.

	1.3	 	Binding agreements
	 
	 	 	The Seller’s obligations under this Deed and each document to be executed at or before
Completion are, or when the relevant document is executed will be, valid, binding and
enforceable in accordance with their terms.
	 
	2.	 	SHARES
	 
	2.1	 	Save for this Deed, there is no Encumbrance, and there is no agreement, arrangement or
obligation to create or give an Encumbrance, in relation to any of the Option Shares. No
person has claimed to be entitled to any Encumbrance in relation to any of the Option Shares.
	 
	2.2	 	The Seller has the right to transfer full legal and beneficial title to the Option Shares.
	 
	2.3	 	The Option Shares will be delivered to the Buyer (and/ or such person(s), as it directs) free
from any Encumbrance.
	 
	2.4	 	The Option Shares are fully paid up and will rank at least pari passu with all other shares
of the Company of the same class in issue.

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SCHEDULE 3

Completion Requirements

	1.	 	At Completion, the Seller shall deliver to the Buyer:

	 	1.1.1	 	the share certificate(s) for the Requested Shares being transferred by the Seller;
	 
	 	1.1.2	 	any stock transfer document or other document, executed by the Seller and in
favour of the Buyer (or such person(s), as it directs), reasonably requested by the
Buyer; and
	 
	 	1.1.3	 	as evidence of the authority of each person executing a document referred to
in this Schedule 3 on the Seller’s behalf:

	 	(a)	 	a copy of the minutes of a duly held meeting of the directors
of the Seller (or a duly constituted committee thereof) authorising the
execution by the Seller of the document and, where such execution is
authorised by a committee of the board of directors of the Seller, a copy of
the minutes of a duly held meeting of the directors constituting such
committee or a relevant extract thereof; or
	 
	 	(b)	 	a copy of the power of attorney conferring the authority,

	 	 	 	in each case certified to be true by a director or the secretary of the Seller.

	1.2	 	The Seller shall ensure that at Completion a meeting of the board of directors of the Company
is held at which the directors vote in favour of the registration of the Buyer or such
person(s), as it directs as member(s) of the Company in respect of the Requested Shares
(subject to the production of properly stamped transfers).
	 
	1.3	 	The Seller shall, within five Business Days of Completion:

	 	1.3.1	 	ensure that new share certificates for the Requested Shares are issued in the
name of the Buyer (or such person(s), as it directs); and
	 
	 	1.3.2	 	provide the Buyer with a certified copy of the register of members of the
Company evidencing the Buyer’s (or such other person’s) ownership of the Requested
Shares.

	1.4	 	The Seller shall promptly take all other action which may, in the opinion of the Buyer, be
necessary to effect the transfer of the Requested Shares to the Buyer (or such person(s), as
it directs).

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SCHEDULE
4

Form of Share Charge

-24-

 

Dated [     ]

FAR EAST ENERGY LTD.

as Chargor

in favour of

STANDARD BANK PLC

as Secured Party

 

SHARE CHARGE

 

WARNING

THE EXECUTION OR TAKING OR SENDING OF THIS DOCUMENT IN OR INTO (AS THE

CASE MAY BE) THE CAYMAN ISLANDS MAY GIVE RISE TO THE IMPOSITION OF

CAYMAN ISLANDS STAMP DUTY EQUAL TO THE AMOUNT OF 1.5% OF THE AMOUNT

CHARGED (SUBJECT TO A CAP OF CI$500 OR ABOUT US$600)

 

 

CONTENTS

	 	 	 	 	 
	Clause	 	Page
	 
	 	 	 	 
	1.     Definitions And Interpretation
	 	 	2	 
	2.     Covenant To Pay And Charge
	 	 	4	 
	3.     Deposit Of Certificates, Related Rights, Release And Annotation
Of Register Of Members
	 	 	4	 
	4.     Voting Rights And Dividends
	 	 	5	 
	5.     Chargor’s Representations And Undertakings
	 	 	7	 
	6.     Further Assurance
	 	 	11	 
	7.     Power Of Attorney
	 	 	11	 
	8.     Security Enforcement
	 	 	12	 
	9.     Receivers And Administrators
	 	 	13	 
	10.   Effectiveness Of Collateral
	 	 	14	 
	11.   Indemnity
	 	 	16	 
	12.   Application Of Proceeds
	 	 	16	 
	13.   Assignment
	 	 	17	 
	14.   Notices
	 	 	17	 
	15.   Waivers And Counterparts
	 	 	18	 
	16.   Law
	 	 	18	 
	17.   Enforcement
	 	 	18	 
	 
	 	 	 	 
	Schedule 1
	 	 	20	 
	Schedule 2
	 	 	21	 
	Schedule 3
	 	 	22	 
	Schedule 4
	 	 	25	 
	Schedule 5
	 	 	26	 
	Schedule 6
	 	 	27	 

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THIS
SHARE CHARGE (this “Charge”) is made by way of
deed on
                , 2009.

BETWEEN

	(1)	 	FAR EAST ENERGY LTD., a company incorporated in the Hong Kong Special
Administrative Region of the People’s Republic of China (the
“Chargor”); and
	 
	(2)	 	STANDARD BANK PLC (the “Secured Party”),

(the Secured Party and the Chargor are hereinafter referred to collectively as the “Parties” and
individually as a “Party”).

RECITALS:

	(A)	 	The Chargor, the Secured Party and others have entered into the Option Agreement (as
defined below), pursuant to which the Secured Party may purchase Preferred Shares
issued by the Company from the Chargor from time to time (as defined below).
	 
	(B)	 	One of the conditions under the Option Agreement is that the Chargor shall enter into a
share charge as security for the Secured Obligations at each Completion (as defined in
the Option Agreement), and that such share charge shall charge a number of Ordinary
Shares equal in number to 96.226446% of the number of Preferred Shares the Secured
Party purchases at such Completion (rounded off to the nearest Ordinary Share). This
Charge is entered into in accordance with such condition of the Option Agreement.
	 
	(C)	 	The board of directors of the Chargor is satisfied that the Chargor is entering into this
Charge for the purposes of its business and that its doing so benefits the Chargor.
	 
	(D)	 	The Parties intend this Charge to take effect as a deed.

IT IS AGREED as follows:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	Definitions
	 
	 	 	In this Charge:
	 
	 	 	“Business Day” means any day that is not a Saturday, a Sunday or a day on which banks are
required or permitted to be closed in the Hong Kong SAR or the People’s Republic of China.
	 
	 	 	“Charge” has the meaning given such term in the Preamble.
	 
	 	 	“Charged Portfolio” means the Shares and the Related Assets.
	 
	 	 	“Collateral Rights” means all rights, powers and remedies of the Secured Party provided by
this Charge or by law.
	 
	 	 	“Company” means MIE Holdings Corporation, an exempted company incorporated with limited
liability in the Cayman Islands.
	 
	 	 	“Material Adverse Effect” means a material adverse effect on the business, results of
operation or financial condition of the Chargor and its Subsidiaries taken as a whole;
provided, however, that Material Adverse Effect shall not be deemed to
include the effects of (a) any changes or developments generally affecting the industry in
which the Chargor or any of its Subsidiaries operates, which changes or developments do not

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	 	 	disproportionately affect the Chargor or any of its Subsidiaries relative to other
participants in such industry in any material respect, (b) any changes or developments in
connection with general economic, political or regulatory conditions, which changes do not
disproportionately affect the Chargor or any of its Subsidiaries and (c) any changes or
proposed changes in accounting standards used by the Chargor or any of its Subsidiaries.
	 
	 	 	“Option Agreement” means the option agreement entered into between, amongst others, the
Chargor and the Secured Party and dated 12 January 2009, as amended and restated on [     ]
2009, and as the same may be amended, restated, consolidated, supplemented, novated or
replaced from time to time.
	 
	 	 	“Party” has the meaning given such term in the Preamble.
	 
	 	 	“Receiver” means a receiver or receiver and manager or administrative receiver of the whole
or any part of the Charged Portfolio appointed by law or in accordance with the terms of
this Charge.
	 
	 	 	“Related Assets” means, in relation to the Chargor, (i) all dividends, interest and other
monies payable in respect of the Shares and/or assets within this definition of Related
Assets and (ii) all other rights, benefits and proceeds in respect of or derived from any
or all of the Shares and/or assets falling within this definition of Related Assets
(whether by way of redemption, bonus, preference, option, substitution, conversion or
otherwise) held by, to the order or on behalf of the Chargor.
	 
	 	 	“Relevant Event” means the failure of the Chargor, the Company and/or MIE to comply with
any obligation under clauses 9 and 10 of the Option Agreement.
	 
	 	 	“Secured Party” has the meaning given such term in the Preamble.
	 
	 	 	“Secured Obligations” means all obligations at any time due, owing or incurred by the
Chargor, the Company and/or MIE to the Secured Party under clauses 9 and 10 of the Option
Agreement.
	 
	 	 	“Security” means the security created under or pursuant to or evidenced by this Charge.
	 
	 	 	“Shares” means [     ] Ordinary Shares in the Company held by, to the order or on behalf of the
Chargor, as specified in Schedule 6 (Details of Shares).
	 
	1.2	 	Terms defined in the Option Agreement
	 
	 	 	Unless defined in this Charge or the context otherwise requires, a term defined in the
Option Agreement has the same meaning in this Charge or any notice given under or in
connection with this Charge, as if all references in such defined terms to the Option
Agreement were a reference to this Charge or such notice.
	 
	1.3	 	Construction
	 
	 	 	Clause 1.3 (Principles of Construction) of the Option Agreement will apply as if
incorporated in this Charge or in any notice given under or in connection with this Charge,
as if all references in such Clauses to the Option Agreement were a reference to this Charge
or such notice.

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	2.	 	COVENANT TO PAY AND CHARGE
	 
	2.1	 	Covenant to Pay
	 
	 	 	The Chargor covenants with the Secured Party to promptly pay and discharge on demand of the
Secured Party any Secured Obligation which is due and payable by it pursuant to and under
the terms of the Option Agreement.
	 
	2.2	 	Charge
	 
	 	 	The Chargor, as legal and beneficial owner, charges by way of first fixed charge the
Charged Portfolio in favour of the Secured Party as continuing security for the payment and
discharge of the Secured Obligations.
	 
	3.	 	DEPOSIT OF CERTIFICATES, RELATED RIGHTS, RELEASE AND ANNOTATION OF
REGISTER OF MEMBERS
	 
	3.1	 	Deposit of certificates
	 
	 	 	The Chargor will immediately upon the execution of this Charge (or upon coming into
possession of the Chargor at any time) deposit (or procure there to be deposited) with the
Secured Party:

	 	3.1.1.	 	certified copies of its corporate documents required to authorise the due
execution and delivery of this Charge;
	 
	 	3.1.2.	 	all certificates and other documents of title to the Shares which shall be issued
as separate certificates to correspond to number of Shares charged to the
Secured Party to facilitate enforcement;
	 
	 	3.1.3.	 	share transfer forms substantially in the form set out in Schedule 1 (Form of
Share Transfer) (executed in blank by or on behalf of the Chargor) in respect of
the Shares which by the shareholders letter of authority referred to in Clause
3.1.4 below the Secured Party will be entitled to date following the occurrence
of a Relevant Event;
	 
	 	3.1.4.	 	a duly executed and dated shareholders letter of authority in the form of
Schedule 2 (Form of Shareholder Letter of Authority) to this Charge and an
irrevocable power of attorney which in accordance with its terms shall be
exercisable following the occurrence of a Relevant Event for as long as such
Relevant Event is continuing;
	 
	 	3.1.5.	 	an executed irrevocable proxy and power of attorney in the forms set out in
Parts I and II of Schedule 3 (Forms of Proxy and Power of Attorney) to this
Charge made in favour of the Secured Party in respect of, among other things,
all shareholder meetings and written resolutions of the Company;
	 
	 	3.1.6.	 	executed but undated written resolutions of the board of directors of the
Company substantially in the form of Schedule 4 (Form of written resolutions of
directors); and
	 
	 	3.1.7.	 	an undertaking from the Company to register transfers of the Shares to the
Secured Party or such parties’ nominee(s) and pending such registration to
recognise the irrevocable proxy and power of attorney (in the form set out in
Parts I and II of Schedule 3 (Forms of Proxy and Power of Attorney) to this
Charge in the form set out in Schedule 5 (Form of Undertaking from the
Company) to this Charge.

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	3.2	 	Related Assets
	 
	 	 	Subject to clause 5.2(g), the Chargor shall, promptly upon the accrual, offer or issue of
any Related Assets (in the form of stocks, shares, warrants or other securities) in which
the Chargor has a beneficial interest, procure the delivery to the Secured Party of (a) all
certificates and other documents of title representing those Related Assets and (b) such
duly executed blank (stamped, if necessary or desirable for the Secured Party) share
transfer forms substantially in the form set out in Schedule 1 (Form of Share Transfer) or
other instruments of transfer in respect of those Related Assets as the Secured Party may
require.
	 
	3.3	 	Release
	 
	 	 	Upon the latest to occur of (i) the General Warranty Expiration Date, (ii) the final
settlement of all claims from the Secured Party which may be outstanding on such Warranty
Expiration Date, (ii) the final settlement of all claims from the Secured Party which may
be outstanding on such General Warranty Expiration Date in respect of the indemnities under
Clauses 9 (Indemnities), and (iii) the payment of the Put Return Deficiency, the Secured
Party shall, promptly at the request of the Chargor but at the cost of the Secured Party,
execute all such documents and do all such other things as may be considered reasonably
necessary to release this Charge.
	 
	3.4	 	Annotation of Register of Members
	 
	 	 	The Chargor shall, within three (3) Business Days following execution of this Charge or in
the case where the Chargor has acquired Related Assets, promptly upon the issuance of such
Related Assets:

	 	3.4.1	 	procure that the following notation be entered on the Register of Members of
the
Company:
	 
	 	 	 	“[     ] ordinary shares of US$0.01 par value issued to Far East Energy Limited as fully
paid up are charged in favour of Standard Bank Plc (including its successors,
assigns and transferees) pursuant to a share charge dated [insert date], as amended
from time to time.”; and
	 
	 	3.4.2	 	provide the Secured Party with a certified copy of such Register of Members of
the Company with such notation.

	3.5	 	Registration
	 
	 	 	The Chargor shall procure that prescribed particulars of this Charge shall forthwith upon
execution hereof be presented (together with this Charge) to the Hong Kong Companies
Registry for registration against it (and in any event within two (2) weeks of the date of
execution of this Charge).
	 
	4.	 	VOTING RIGHTS AND DIVIDENDS
	 
	4.1	 	Voting rights and dividends prior to a Relevant Event
	 
	 	 	Except while a Relevant Event is continuing, the Chargor shall:

	 	(a)	 	be entitled to all dividends, interest and other monies arising from the
Charged
Portfolio; and
	 
	 	(b)	 	subject to Clause 5.2(f), be entitled to exercise all voting rights in relation
to the
Charged Portfolio.

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	 	 	Without prejudice to the foregoing, the Secured Party shall not have any duty to ensure
that any dividends, interest or other monies and assets receivable in respect of the
Charged Portfolio are duly and punctually paid, received or collected as and when the same
become due and payable or to ensure that the correct amounts (if any) are paid or received
on or in respect of the Charged Portfolio or to ensure the taking up of any (or any offer
of any) stocks, shares, rights, monies or other property paid, distributed, accruing or
offered at any time by way of redemption bonus, rights, preference, or otherwise on or in
respect of, any of the Charged Portfolio.
	 
	4.2	 	Calls and other payments prior to a Relevant Event
	 
	 	 	The Chargor shall pay all calls, instalments or other payments, and shall discharge all
other obligations, which may become due in respect of any of the Charged Portfolio. While a
Relevant Event is continuing, the Secured Party may if it thinks fit make such payments or
discharge such obligations on behalf of the Chargor. Any amounts so paid by the Secured
Party in respect thereof shall be repayable on demand and pending such repayment shall
constitute part of the Secured Obligations.
	 
	4.3	 	Voting rights and dividends after a Relevant Event
	 
	 	 	Upon the occurrence of a Relevant Event and for so long as such Relevant Event is
continuing, the Chargor shall pay to the Secured Party all dividends, interest and other
monies received by it in connection with its Charged Portfolio or any part thereof at any
time during the subsistence of this Charge and shall, at all times prior to such payment to
the Secured Party, hold the same on trust for the Secured Party. Without prejudice to the
foregoing, upon the occurrence of a Relevant Event and for so long as such Relevant Event
is continuing, the Secured Party may, at their discretion, (in the name of the Chargor or
otherwise and without any further consent or authority from the Chargor):

	 	(a)	 	exercise (or refrain from exercising) any voting rights in respect of the
Charged
Portfolio;
	 
	 	(b)	 	apply all dividends, interest and other monies arising from all or any part of
the
Charged Portfolio towards the discharge of the Secured Obligations as though
they were the proceeds of sale under this Charge;
	 
	 	(c)	 	date and deliver the documents delivered to it pursuant to this Charge as it
considers appropriate and to take all steps to register the Charged Portfolio in
the name of the Secured Party or such parties’ nominee or nominees and to
transfer control to the Secured Party or their nominee(s) as registered owner of
the Shares; and
	 
	 	(d)	 	exercise (or refrain from exercising) the powers and rights conferred on or
exercisable by the legal or beneficial owner of the Charged Portfolio including
without limitation the right, in relation to any company whose shares or other
securities are included in the Charged Portfolio, to concur or participate in:

	 	(i)	 	the reconstruction, amalgamation, sale or other disposal of
such company or any of its assets or undertaking (including without
limitation the exchange, conversion or reissue of any shares or securities as
a consequence thereof);
	 
	 	(ii)	 	the release, modification or variation of any rights or
liabilities attaching to such shares or securities; and

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	 	(iii)	 	the exercise, renunciation or assignment of any right to subscribe for
any shares or securities,

	 	 	in each case in the manner and on the terms the Secured Party thinks fit, and the proceeds
of any such action shall form part of the Charged Portfolio.
	 
	5.	 	CHARGOR’S REPRESENTATIONS AND UNDERTAKINGS
	 
	5.1	 	Representations
	 
	 	 	The Chargor makes the following representations and warranties to the Secured Party and
acknowledges that the Secured Party has become a Party to this Charge in reliance on these
representations and warranties:

	 	(a)	 	Status

	 	(i)	 	It is duly incorporated and validly existing under the law
of its jurisdiction of incorporation.
	 
	 	(ii)	 	It has the power to own its assets and carry on its business
as it is being conducted.

	 	(b)	 	Binding obligations
	 
	 	 	 	The obligations expressed to be assumed by it in this Charge are, subject to any
general principles of law as at the date of this Charge limiting its obligations,
legal, valid and binding obligations enforceable in accordance with its terms.
	 
	 	(c)	 	Non-conflict with other obligations
	 
	 	 	 	The entry into and performance by it of, and the transactions contemplated by, this
Charge (including any transfer of the Shares on creation or enforcement of the
security constituted by this Charge) do not and shall not:

	 	(i)	 	conflict with:

	 	(A)	 	any material law or regulation applicable to it;
	 
	 	(B)	 	its constitutional documents; or
	 
	 	(C)	 	any material agreement or instrument binding upon
it, any of its assets or the Shares; or

	 	(ii)	 	result in the existence of, or oblige it to create, any
security over the Shares (other than the security contemplated by this
Charge).

	 	(d)	 	Ranking
	 
	 	 	 	The security created by this Charge has or will have first ranking priority and it
is not subject to any prior ranking or pari passu ranking security.
	 
	 	(e)	 	Power and authority

	 	(i)	 	It has the power to enter into, perform and deliver, and has
taken all necessary action to authorise its entry into, performance and
delivery of, this Charge and the transactions contemplated by this Charge.

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	 	(ii)	 	No limit on its powers will be exceeded as a result of the grant of
security contemplated by this Charge.

	 	(f)	 	Ownership of Shares
	 
	 	 	 	It is the sole legal and beneficial owner of the Charged Portfolio free and clear of all
security interests save as created by this Charge and has not sold or disposed of or
granted any options or pre-emption rights in respect of any of its right, title and
interest, in the Charged Portfolio and all of the Shares are validly issued, fully paid
and are not subject to any options to purchase, pre-emption rights or similar rights or
other restrictions upon disposal which would operate to restrict in any way their
disposal by any of the Secured Party should any of the Secured Party come to enforce its
security over the Charged Portfolio contained in this Charge.
	 
	 	(g)	 	Authorisations
	 
	 	 	 	All consents, licences, approvals and authorisations required or desirable:

	 	(i)	 	to enable it lawfully to enter into, exercise its rights and comply
with its obligations under this Charge; and
	 
	 	(ii)	 	to make this Charge admissible in evidence in its
jurisdiction of incorporation and in the Cayman Islands,

	 	 	 	have been obtained or effected and are in full force and effect.
	 
	 	(h)	 	Governing law
	 
	 	 	 	Subject to any general principles of law as at the date of this Charge limiting its
obligations:

	 	(i)	 	the choice of Cayman Islands law as the governing law of this Charge
will be recognised and enforced in its jurisdiction of organisation; and
	 
	 	(ii)	 	any judgment obtained in the Cayman Islands in relation to this
Charge will be recognised and enforced in its jurisdiction of organisation.

	 	(i)	 	Insolvency
	 
	 	 	 	No order or petition has been presented or resolution passed for the administration,
winding-up, dissolution or liquidation of the Chargor and no administrator, receiver or
manager has been appointed in respect thereof. The Chargor has not commenced any other
proceeding under any bankruptcy, reorganization, composition, arrangement, adjustment of
debt, release of debtors, dissolution, insolvency, liquidation or similar law of any
jurisdiction and there has not been commenced against he Chargor any such proceeding.
	 
	 	(j)	 	No proceedings pending or threatened
	 
	 	 	 	There is no legal, administrative, arbitration or other action or proceeding or
governmental investigation pending, or, to the knowledge of the Chargor, threatened,
against the Chargor or its activities, properties or assets, or to the knowledge of the
Chargor, against any officer, director or key employee of the Chargor in connection
with such officer’s director’s or key employee’s

8

 

	 	 	 	relationship with, or action taken on behalf of, the Chargor, including but not
limited to any legal, administrative, arbitration or other action or proceeding or
governmental investigation that questions the validity of this Charge, or the
right of the Chargor to enter into this Charge, or the consummation of the
transactions contemplated hereby, or that would result in a Material Adverse
Effect or any change in the current equity ownership of the Chargor, nor is the
Chargor aware that there is any basis for the foregoing.
	 
	 	(k)	 	Pari passu ranking
	 
	 	 	 	Its payment obligations under this Charge rank at least pari passu with the claims
of all its other unsecured and unsubordinated creditors, except for obligations
mandatorily preferred by law applying to companies generally.
	 
	 	(I)	 	No Stamp Taxes
	 
	 	 	 	Under the laws of Hong Kong, it is not necessary or desirable for the Secured
Party that any stamp, registration or similar tax be paid on or in relation to
this Charge.

	5.2	 	Undertakings

	 	(a)	 	Authorisations
	 
	 	 	 	The Chargor shall promptly:

	 	(i)	 	obtain, comply with and do all that is necessary to
maintain in full force and effect; and
	 
	 	(ii)	 	supply certified copies to the Secured Party of,

	 	 	 	any material authorisation required under applicable law or regulation to enable
it to perform its obligations under this Charge (where the failure to obtain and
comply with such authorisation could reasonably be expected to have a Material
Adverse Effect) and each other authorisation required to ensure the legality,
validity, enforceability or admissibility in evidence in its jurisdiction of
incorporation of this Charge.
	 
	 	(b)	 	Compliance with laws
	 
	 	 	 	The Chargor shall comply in all material respects with all laws applicable to it,
if failure to comply could reasonably be expected to materially impair its ability
to perform its obligations under this Charge enforceable in accordance with its
terms.
	 
	 	(c)	 	No Action
	 
	 	 	 	The Chargor shall not without the prior written consent of the Secured Party:

	 	(i)	 	permit any person other than the Chargor, the Secured Party
or any transferee nominated by the Secured Party on enforcement of this
Charge to be the registered holder of any of the Charged Shares;
	 
	 	(ii)	 	take any action to vary the rights attaching to the Charged Shares; or

9

 

	 	(iii)	 	take any action which results in an increase or reduction in the authorised or
issued share capital of the Company or the number of shares that the Company is
authorised to issue or the issued share or share capital of the Company, other than
as permitted by the Standard Bank Facility and/or the Finance Documents (as such
term is defined in the Standard Bank Facility).

	 	(d)	 	Disposals
	 
	 	 	 	The Chargor will not enter into a single transaction or a series of transactions (whether
related or not and whether voluntary or involuntary) to sell, lease, transfer or
otherwise dispose of the Charged Portfolio without the written consent of the Secured
Party.
	 
	 	(e)	 	Calls on Shares
	 
	 	 	 	The Chargor undertakes to pay all calls or other payments when due in respect of any part
of the Charged Portfolio. If the Chargor fails to make any such payment the Secured Party
may make that payment on behalf of the Chargor and any sums so paid by the Secured Party
shall be reimbursed by the Chargor on demand.
	 
	 	(f)	 	Voting Rights
	 
	 	 	 	The Chargor shall not exercise its voting rights in relation to the Charged Portfolio in
any manner, or otherwise permit or agree to, or concur or participate in any:

	 	(i)	 	variation of the rights attaching to or conferred by all or any part of
the Charged Portfolio;
	 
	 	(ii)	 	increase in the issued share capital of any company whose shares are
charged pursuant to this Charge;
	 
	 	(iii)	 	exercise, renunciation or assignment of any right to subscribe for any
shares or securities; or
	 
	 	(iv)	 	reconstruction, amalgamation, sale or other disposal of any company or
any of the assets of any company (including the exchange, conversion or reissue of
any shares or securities as a consequence thereof) whose shares are charged under
this Charge ,

	 	 	 	which in the opinion of the Secured Party would prejudice the value of, or the ability
of the Secured Party to realise, the security created by this Charge or the legality,
validity or enforceability of this Charge.
	 
	 	(g)	 	No Other Security Interests
	 
	 	 	 	The Charged Portfolio shall remain free and clear of all security interests save as
created by this Charge.
	 
	 	(h)	 	No Action
	 
	 	 	 	The Chargor shall not take any action which would cause any of the representations made
in Clause 5.1 to be untrue or incorrect in any respect at any time before the Security
is released.

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	6.	 	FURTHER ASSURANCE
	 
	6.1	 	Covenant for Further Assurance
	 
	 	 	The Chargor will promptly at its own cost do all such acts or execute all such documents
(including assignments, transfers, mortgages, charges, notices and instructions) as the
Secured Party may reasonably specify (and in such form as the Secured Party may reasonably
require in favour of the Secured Party or such parties’ nominee(s)) for the purpose of
exercising the Collateral Rights or perfecting the Security created or intended to be
created in respect of the Charged Portfolio (which may include the execution by the Chargor
of a mortgage, charge or assignment over all or any of the assets constituting, or intended
to constitute, the Charged Portfolio) or for the exercise of the rights, powers and
remedies of the Secured Party provided by or pursuant to this Charge or by law in each case
in accordance with the rights vested in it under this Charge.
	 
	6.2	 	Prescribed Wording
	 
	 	 	The following covenants shall be implied in respect of any action taken by the Chargor to
comply with its obligations under Clause 6.1:

	 	(a)	 	the Chargor has the right to take such action in respect of the Charged
Portfolio;
and
	 
	 	(b)	 	the Chargor will at its own cost do all that it reasonably can to give the
Secured
Party or such parties’ nominee(s) the title and/or rights that it purports to give.

	7.	 	POWER OF ATTORNEY
	 
	7.1	 	Appointment and powers
	 
	 	 	The Chargor irrevocably and by way of security for the payment of the Secured Obligations
appoints the Secured Party and any Receiver severally to be its true and attorney and in
its name, on its behalf and as its act and deed to execute, deliver and perfect all
documents and do all things which the attorney may consider to be necessary or desirable
for:

	 	(a)	 	carrying out any obligation imposed on the Chargor by this Charge (including
the execution and delivery of any deeds, charges, assignments, written
resolutions or other security and any transfers of the Charged Portfolio) if the
Chargor has not itself carried out such obligation; and
	 
	 	(b)	 	enabling the Secured Party to exercise, or delegate the exercise of, all or any
of
the Collateral Rights (including without limitation, upon the occurrence of a
Relevant Event and for so long as such Relevant Event is continuing, the
exercise of any right of a legal or beneficial owner of the Chargor’s Charged
Portfolio); and
	 
	 	(c)	 	enabling any Receiver to exercise, or delegate the exercise of, any of the
rights,
powers and authorities conferred on them by or pursuant to this Charge or by
law.

	 	 	Notwithstanding any other provision of this Charge, any power of attorney granted hereunder
shall not be exercisable by or on behalf of the Secured Party until the occurrence of a
Relevant Event and shall only be exercisable for so long as such Relevant Event is
continuing.

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	7.2	 	Ratification
	 
	 	 	The Chargor shall ratify and confirm all things done and all documents executed by any
attorney in the exercise or purported exercise of all or any of his powers.
	 
	8.	 	SECURITY ENFORCEMENT
	 
	8.1	 	Time for Enforcement
	 
	 	 	On and at any time after the occurrence of a Relevant Event (which is continuing) or if a
petition or application is presented for the making of an administration order in relation
to the Chargor or if any person gives written notice of its intention to appoint an
administrator of the Chargor or files such a notice with the court, the security created by
or pursuant to this Charge is immediately enforceable and the Secured Party may, without
notice to the Chargor or prior authorisation from any court, in its absolute discretion:

	 	(a)	 	secure and perfect their title to all or any part of the Charged Portfolio
(including
transferring the Charged Portfolio into the name of the Secured Party or such
parties’ nominees);
	 
	 	(b)	 	enforce all or any part of the Security (at the times, in the manner and on the
terms they think fit) and take possession of and hold, sell, or otherwise dispose
of all or any part of the Charged Portfolio (at the time, in the manner and on the
terms they think fit); and
	 
	 	(c)	 	whether or not the Secured Party have appointed a Receiver, exercise all or
any of the powers, authorisations and discretions conferred by any applicable
law in the Cayman Islands (as varied or extended by this Charge) on chargees
and by this Charge on any Receiver or otherwise conferred by law on chargees
or Receivers.

	8.2	 	Secured Party liability

	 	(a)	 	Neither the Secured Party nor any Receiver will be liable to account as
mortgagee
or mortgagee in possession in respect of the Charged Portfolio or be liable for any
loss upon realisation or for any neglect or default of any nature whatsoever in
connection with the Charged Portfolio for which a mortgagee or mortgagee in
possession might as such be liable.
	 
	 	(b)	 	Neither the Secured Party nor any Receiver will be obliged to make any enquiry
as to the nature or sufficiency of any payment received by it under this Charge or
to make any claim or to take any action to collect any monies assigned by this
Charge or to enforce any rights or benefits assigned to the Secured Party by this
Charge or to which the Secured Party may at any time be entitled hereunder.
	 
	 	(c)	 	Neither the Secured Party nor their respective agents, managers, officers,
employees, delegates or advisors will be liable for any claim, demand, liability,
loss, damage, consequential damage, cost or expense incurred or arising in
connection with the exercise or purported exercise of any rights, powers and
discretions hereunder.

	8.3	 	Statutory powers
	 
	 	 	The powers conferred by this Charge on the Secured Party are in addition to and not in
substitution for the powers conferred on mortgagees and mortgagees in possession by law and
in the case of any conflict between the powers contained in any such law and those
conferred by this Charge the terms of this Charge will prevail.

12

 

	9.	 	RECEIVERS AND ADMINISTRATORS
	 
	9.1	 	Appointment and removal
	 
	 	 	After this Charge becomes enforceable in accordance with Clause 8 (Security Enforcement),
the Secured Party may by writing or otherwise, without prior notice to the Chargor:

	 	(a)	 	appoint one or more persons to be a Receiver of the whole or
any part of the Charged Portfolio;
	 
	 	(b)	 	appoint one or more Receivers of separate parts of the
Charged Portfolio respectively;
	 
	 	(c)	 	remove (so far as it is lawfully able) any Receiver so appointed; and
	 
	 	(d)	 	appoint another person(s) as an additional or replacement Receiver(s).

	9.2	 	Capacity of Receivers
	 
	 	 	Each person appointed to be a Receiver pursuant to Clause 9.1 (Appointment and removal)
will be:

	 	(a)	 	entitled to act individually or together with any other person appointed or
substituted as Receiver;
	 
	 	(b)	 	for all purposes deemed to be the agent of the Chargor which shall be solely
responsible for his acts, defaults and liabilities and for the payment of his
remuneration and no Receiver shall at any time act as agent for the Secured
Party; and
	 
	 	(c)	 	entitled to remuneration for his services at a rate to be fixed by the Secured
Party from time to time.

	9.3	 	Powers of Receivers
	 
	 	 	In addition to the powers conferred by Clause 9.1, each Receiver shall (subject to any
restrictions in the instrument appointing him but notwithstanding any winding-up or
dissolution of the Chargor) have and be entitled to exercise, in relation to the Charged
Portfolio in respect of which he was appointed, and as varied and extended by the
provisions of this Charge (in the name of or on behalf of the Chargor or in his own name
and, in each case, at the cost of the Chargor):

	 	(a)	 	all the powers conferred on a receiver by any applicable law;
	 
	 	(b)	 	all the powers and rights of an absolute owner and power to do or omit to do
anything which the Chargor itself could do or omit to do;
	 
	 	(c)	 	the power to delegate (either generally or specifically) the powers,
authorities
and discretions conferred on it by this Charge (including the power of attorney)
on such terms and conditions as it shall see fit which delegation shall not
preclude either the subsequent exercise, any subsequent delegation or any
revocation of such power, authority or discretion by the Receiver itself; and

13

 

	 	(d)	 	the power to do all things (including bringing or defending proceedings
in the name or on behalf of the Chargor) which seem to the Receiver to be incidental
or conducive to:

	 	(i)	 	any of the functions, powers, authorities or discretions
conferred on or vested in him;
	 
	 	(ii)	 	the exercise of any rights, powers and remedies of the
Secured Party provided by or pursuant to this Charge or by law (including
realisation of all or any part of the Charged Portfolio); or
	 
	 	(iii)	 	bringing to his hands any assets of the Chargor forming
part of, or which when got in would be, Charged Portfolio.

	9.4	 	Consideration
	 
	 	 	The receipt of the Secured Party or any Receiver shall be a conclusive discharge to a
purchaser and, in making any sale or disposal of any of the Charged Portfolio or making any
acquisition, the Secured Party or any Receiver may do so for such consideration, in such
manner and on such terms as it thinks fit.
	 
	9.5	 	Protection of purchasers
	 
	 	 	No purchaser or other person dealing with the Secured Party or any Receiver shall be bound
to inquire whether the right of the Secured Party or such Receiver to exercise any of its
powers has arisen or become exercisable or be concerned with any propriety or regularity on
the part of the Secured Party or such Receiver in such dealings.
	 
	10.	 	EFFECTIVENESS OF COLLATERAL
	 
	10.1	 	Collateral Cumulative
	 
	 	 	The collateral constituted by this Charge and the Collateral Rights shall be cumulative, in
addition to and independent of every other security which Secured Party may at any time
hold for the Secured Obligations or any rights, powers and remedies provided by law. No
prior security held by the Secured Party over the whole or any part of the Charged
Portfolio shall merge into the collateral constituted by this Charge.
	 
	10.2	 	No Waiver
	 
	 	 	No failure to exercise, nor any delay in exercising, on the part of any of the Secured
Party, any right, power or remedy of any of the Secured Party provided by this Charge or by
law shall impair such right, power or remedy, or operate as a waiver, nor shall any single
or partial exercise of that right, power or remedy prevent any further or other exercise of
that or any other right, power or remedy of any of the Secured Party provided by this Charge
or by law. The rights, powers and remedies herein provided are cumulative and not exclusive
of any rights, powers and remedies provided by law and may be exercised from time to time
and as often as the Secured Party may deem expedient. Any waiver by the Secured Party of any
terms of this Charge shall only be effective if given in writing and then only for the
purpose and upon the terms for which it is given.
	 
	10.3	 	Illegality, Invalidity, Unenforceability
	 
	 	 	If, at any time, any provision of this Charge is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, neither the legality,
validity or enforceability of the remaining provisions of this Charge nor the legality,
validity or enforceability of such provision under the law of any other jurisdiction will
in any way be affected or impaired.

14

 

	10.4	 	No liability
	 
	 	 	None of the Secured Party, the Secured Party’s nominee(s) or any Receiver appointed
pursuant to this Charge shall be liable by reason of (a) taking any action permitted by
this Charge or (b) any neglect or default in connection with the Charged Portfolio or (c)
the taking possession or realisation of all or any part of the Charged Portfolio, except in
the case of gross negligence or wilful default upon its part.
	 
	10.5	 	Implied Covenants for Title
	 
	 	 	It shall be implied in respect of Clause 2.2 (Charge) that the Chargor is charging the
Charged Portfolio free from all charges and encumbrances (whether monetary or not) and from
all other rights exercisable by third parties (including liabilities imposed and rights
conferred by or under any enactment).
	 
	10.6	 	Continuing security

	 	(a)	 	The Security from time to time constituted by this Charge is a continuing
security and will remain in full force and effect as a continuing security until
released or discharged by the Secured Party.
	 
	 	(b)	 	No part of the Security from time to time constituted by this Charge will be
considered satisfied or discharged by any intermediate payment, discharge or
satisfaction of the whole or any part of the Secured Obligations.

	10.7	 	Immediate recourse
	 
	 	 	The Chargor waives any right it may have of first requiring the Secured Party to proceed
against or enforce any other rights or Security or claim payment from any person before
claiming from the Chargor under this Charge. This waiver applies irrespective of any law or
any provision of this Charge to the contrary.
	 
	10.8	 	Avoidance of Payments
	 
	 	 	Notwithstanding Clause 3.3 (Release) if the Secured Party consider that any amount paid or
credited to it is capable of being avoided or reduced by virtue of any bankruptcy,
insolvency, liquidation or similar laws the liability of the Chargor under this Charge and
the security constituted by this Charge shall continue and that amount shall not be
considered to have been irrevocably paid.
	 
	10.9	 	Waiver of defences
	 
	 	 	The obligations of the Chargor under this Charge and this Security will not be affected by
any act, omission, matter or thing which, but for this Clause 10.9 (Waiver of defences),
would reduce, release or prejudice any of its obligations, or might operate to impair,
affect or discharge the rights and security of the Secured Party, in whole or in part,
under this Charge and this Security and whether or not known to the Company, the Chargor,
the Secured Party or any other person including:

	 	(a)	 	any time, waiver or consent granted to, or composition with, the Chargor or
other person;
	 
	 	(b)	 	the release of the Chargor or any other person under the terms of any
composition or arrangement with any creditor of the Chargor;
	 
	 	(c)	 	the taking, variation, compromise, exchange, renewal or release of, or refusal
or
neglect to perfect, take up or enforce, any rights against, or security over assets
of, the Chargor or other person or any non-presentment or non-observance of

15

 

	 	 	 	any formality or other requirement in respect of any instruments or any failure to
realise the full value of any other security;
	 
	 	(d)	 	any incapacity or lack of powers, authority or legal personality of or
dissolution
or change in the members or status of, the Chargor or any other person;
	 
	 	(e)	 	any amendment (however fundamental) or replacement of any document or
security;
	 
	 	(f)	 	any unenforceability, illegality or invalidity of any obligation of any person
under
any document or security; or
	 
	 	(g)	 	any insolvency or similar proceedings.

	11.	 	INDEMNITY
	 
	11.1	 	Enforcement expenses
	 
	 	 	The Chargor shall, within three (3) Business Days of demand, pay to the Secured Party the
amount of all costs and expenses (including legal fees) incurred by the Secured Party in
connection with the exercise, enforcement or preservation of any rights, powers and
remedies under this Charge, the enforcement of the Security created pursuant to this Charge
and any proceedings instituted by or against the Secured Party (other than proceedings
instituted by or against the Chargor) as a consequence of taking, holding or enforcing the
Security created pursuant to this Charge or of exercising those rights, powers and
remedies.
	 
	11.2	 	Indemnity
	 
	 	 	The Chargor shall, notwithstanding any release or discharge of all or any part of the
security, indemnify the Secured Party, their respective attorneys and any Receiver against
any action, proceeding, claims, losses, liabilities and costs which it may sustain as a
consequence of any breach by the Chargor of the provisions of this Charge, the exercise or
purported exercise of any of the rights and powers conferred on them by this Charge or
otherwise relating to the Charged Portfolio.
	 
	11.3	 	Currency
	 
	 	 	If, under any applicable law or regulation, and whether pursuant to a judgment being made or
registered against the Chargor or the bankruptcy or liquidation of the Chargor or for any
other reason any payment under or in connection with this Charge is made or falls to be
satisfied in a currency (the “Payment Currency”) other than the currency in which such
payment is due under or in connection with this Charge (the “Contractual Currency”), then to
the extent that the amount of such payment actually received by the Secured Party when
converted into the Contractual Currency at the rate of exchange, falls short of the amount
due under or in connection with this Charge, the Chargor, as a separate and independent
obligation, shall indemnify and hold harmless the Secured Party against the amount of such
shortfall. For the purposes of this clause, “rate of exchange” means the rate at which the
Secured Party is able on or about the date of such payment to purchase the Contractual
Currency with the Payment Currency and shall take into account any premium and other costs
of exchange with respect thereto.
	 
	12.	 	APPLICATION OF PROCEEDS
	 
	 	 	All monies received or recovered by the Secured Party or any Receiver pursuant to this
Charge or the powers conferred by it shall (subject to the claims of any person having
prior rights thereto) be applied first in the payment of the costs, charges and expenses

16

 

	 	 	incurred and payments made by the Receiver, the payment of his remuneration and the
discharge of any liabilities incurred by the Receiver in, or incidental to, the exercise of
any of his powers, and thereafter shall be applied by the Secured Party (notwithstanding any
purported appropriation by the Chargor) to the payment of the Secured Obligations.
	 
	13.	 	ASSIGNMENT
	 
	13.1	 	No Assignment and Exception
	 
	 	 	The provisions of this Charge shall be binding upon and accrue to the benefit of the
Parties and their respective successors and permitted assigns. Notwithstanding the
foregoing, none of the Parties may assign its rights and obligations in whole or in part
hereunder without the prior written consent of the other Parties, except that the Secured
Party is permitted to assign their rights and benefits under this Charge, in whole or in
part, to any Person who acquires Preferred Shares of the Company held by the Secured Party.
	 
	13.2	 	Disclosure
	 
	 	 	The Secured Party shall be entitled to disclose such information concerning the Chargor or
any other person and this Agreement as the Secured Party consider appropriate to any actual
or proposed direct or indirect successor or to any person to whom information may be
required to be disclosed by applicable law.
	 
	14.	 	NOTICES
	 
	14.1	 	All notices, consents, and other communications under or pursuant to this Charge (“Notices”)
shall be in writing and in the English language and shall be delivered (A) by hand, (B) by
facsimile (with receipt confirmed); provided, however, that a copy is promptly thereafter
mailed by reputable private courier, return receipt requested, (C) by the addressee or (D) by
such other means as the Parties may agree from time to time; in each case to the appropriate
addresses and facsimile numbers set forth below (or to such other addresses or facsimile
numbers as a Party may designate as to itself by not less than five (5) Business Days notice
to the other Parties):

	 	if to the Secured Party, to 	:	 Standard Bank PLC

Cannon Bridge House

25 Dowgate Hill

London EC 4R 2SB

Fax: +852 2822 7947

Attention: John Wixley c/o Standard

Bank Asia Limited

	 
	 	if to the Chargor, to 	:	 Far East Energy Limited

Suite 406, Block C Grand Palace

5 Hui Zhong Road

Chaoyang District, Beijing 100101

PRC

Fax: (8610)5123 8866

Attention: Mr. Zhang Ruilin

17

 

	14.2	 	English Language
	 
	 	 	Any notice and all other documents given under or in connection with this Agreement must be
in English.
	 
	15.	 	WAIVERS AND COUNTERPARTS
	 
	15.1	 	Waivers
	 
	 	 	No waiver by the Secured Party of any of its rights under this Charge shall be effective
unless given in writing.
	 
	15.2	 	Counterparts
	 
	 	 	This Charge may be executed in any number of counterparts, and this has the same effect as
if the signatures on the counterparts were on a single copy of this Charge.
	 
	16.	 	LAW
	 
	 	 	This Charge is governed by Cayman Islands law.
	 
	17.	 	ENFORCEMENT
	 
	17.1	 	Jurisdiction of the Cayman Islands Courts
	 
	 	 	The Parties agree that:

	 	(a)	 	the courts of the Cayman Islands have non-exclusive jurisdiction to settle any
dispute arising out of or in connection with this Charge (including a dispute
regarding the existence, validity or termination of this Charge) (a “Dispute”) and
for such purpose the Chargor and the Secured Party irrevocably submit to the
jurisdiction of the Cayman Islands courts;
	 
	 	(b)	 	the courts of the Cayman Islands are the most appropriate and convenient
courts to settle Disputes and accordingly no party will argue to the contrary; and
	 
	 	(c)	 	a final judgment or order in connection with this Charge of any court referred
to
in this Clause 17.1 is conclusive and binding on the Parties and may be
enforced against it in the courts of any other jurisdiction,

	 	 	provided that nothing in this clause shall affect the right of the Secured Party to serve process
in any manner permitted by law or limit the right of the Secured Party to take proceedings with
respect to this Charge against the Chargor in any other jurisdiction, nor shall it limit the
right of the Chargor to take proceedings with respect to this Charge against the Secured Party in
any other jurisdiction, whether concurrently or not.
	 
	17.2	 	Service of process
	 
	 	 	Without prejudice to any other mode of service allowed under any relevant law, the Chargor:

	 	(a)	 	irrevocably appoints the Company as its agent for service of process in
relation
to any proceedings before the Cayman Islands courts in connection with this
Charge;
	 
	 	(b)	 	agrees that failure by an agent for service of process to notify the Chargor of
the
process will not invalidate the proceedings concerned; and
	 
	 	(c)	 	if the agent referred to in paragraph (a) above ceases to be appointed, agrees
to appoint another agent with an address in the Cayman Islands, promptly upon

18

 

	 	 	 	request by the Secured Party and authorises the Secured Party to appoint another
agent if the Chargor fails to appoint one following such request.

THIS CHARGE has been signed on behalf of the Secured Party and executed as a deed by the Chargor
and is hereby delivered by the Chargor on the date specified above.

19

 

SCHEDULE 1

Form of Share Transfer

MIE HOLDINGS CORPORATION (the “Company”)

SHARE TRANSFER FORM

We, Far East Energy Ltd. (the “Transferor”), for good and valuable consideration received by
us from                                                     
         (the “Transferee”) of        
               
                 
                
     ,
do hereby transfer to the Transferee
                     share(s) (the “Shares”) standing in our name in the register of members of the
Company.

As Witness Our Hands

Signed by the Transferor on the

        day of        
                    
     

in the presence of:

	 	 	 
	 
	 	 
	 

	 	 
	Witness

	 	Transferor
	 
	 	 
	Signed by the Transferee on the
	 	 
	
        day of           
                    
	 	 
	in the presence of:
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	Witness

	 	For and on behalf of Transferee

20

 

SCHEDULE 2

Form of Shareholder Letter of Authority

	To:	 	 Standard Bank PLC

Date: [•] 2009

Dear Sirs

MIE HOLDINGS CORPORATION (the “Company”)

We hereby unconditionally and irrevocably authorise you to date, deliver, give full effect to and
otherwise complete the share transfer form(s) (in respect of our shares in the Company) deposited
by ourselves with yourselves pursuant to the Share Charge dated [•] (the “Charge”) between
ourselves and Standard Bank PLC, following the occurrence of a Relevant Event (as defined in the
Charge) and for as long as such Relevant Event is continuing and for such purposes we attach duly
executed and dated irrevocable appointment of proxy and irrevocable power of attorney given by way
of security in the forms as annexed hereto.

Yours faithfully,

 

For and on behalf of

Far East Energy Ltd.

21

 

SCHEDULE 3

Forms of Proxy and Power of Attorney

PART I

MIE HOLDINGS CORPORATION

IRREVOCABLE APPOINTMENT OF PROXY GIVEN BY WAY OF SECURITY

We, Far East Energy Ltd., hereby irrevocably (1) appoint Standard Bank PLC as our proxy to vote at
meetings of the Shareholders of MIE Holdings Corporation (the “Company”) in respect of any
existing or further shares in the Company which may have been or may from time to time be issued
and/or registered in our name and (2) ratify and confirm all acts and things Standard Bank PLC may
do or cause to be done pursuant to this proxy.

This proxy is given by way of security pursuant to a share charge dated [•] made between Far East
Energy Limited and Standard Bank PLC and is irrevocable.

IN WITNESS whereof this instrument has been duly executed as a deed this [•] day of [•] 2009.

	 	 	 	 	 	 	 	 	 
	The COMMON SEAL of

	 	 	)	 	 	 	 	 
	FAR EAST ENERGY LIMITED

	 	 	)	 	 		 	 
	was hereunto affixed

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 
	 

	 	 	 	 	 	 

Director	 	 
	 
	 	 	 	 	 		 	 
	 

Witness Name:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attention:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness Name:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attention:
	 	 	 	 	 	 	 	 

22

 

PART II

MIE HOLDINGS CORPORATION

IRREVOCABLE APPOINTMENT OF ATTORNEY-IN-FACT GIVEN BY WAY OF
SECURITY

We, Far East Energy Ltd., by way of security and in order to more fully secure the performance of
our obligations under the Share Charge dated [•] (the “Charge”) between ourselves and Standard
Bank PLC, pursuant to the Power of Attorney Law (1996 Revision) hereby irrevocably appoint
Standard Bank PLC and the persons deriving title under it to be our attorney:

	(a)	 	to execute and complete in favour of the Secured Party (as defined in the Charge)
or its nominees or of any purchaser any documents which the Secured Party may
from time to time require for perfecting its title to or for vesting any of the assets
and property hereby charged or assigned in the Secured Party or its nominees or
in any purchaser and to give effectual discharges for payments;
	 
	(b)	 	to take and institute on non payment (if the Secured Party in its sole discretion so
decides) all steps and proceedings in the name of the Secured Party or of the
Secured Party for the recovery of such monies, property and assets hereby
charged and to agree accounts;
	 
	(d)	 	to act as our corporate representative (and/or to appoint any officer or nominee of ours for
such purpose) to represent us at any general meeting of members of MIE Holdings Corporation
(the “Company”) and to sign any resolution in writing of the members of the Company (including
in respect of any existing or further shares in the Company which may have been or may from
time to time be issued and/or registered in our name) or to requisition or convene general
meetings of the Company or to waive or consent to short notice of such in that capacity;
	 
	(d)	 	to make allowances and give time or other indulgence to any surety or other
person liable;
	 
	(e)	 	otherwise generally to act for us and in our name and on our behalf; and
	 
	(f)	 	to sign, execute, seal and deliver and otherwise perfect and do any such legal
assignments and other assurances, charges, authorities and documents over the
monies, property and assets hereby charged, and all such deeds, instruments,
acts and things (including, without limitation, those referred to in Clause 6 of the
Charge) which may be required for the full exercise of all or any of the powers
conferred or which may be deemed proper on or in connection with any of the
purposes aforesaid.

The power hereby conferred shall be a general power of attorney and we hereby ratify and confirm
and agree to ratify and confirm any instrument, act or thing which any such attorney may execute
or do. In relation to the power referred to herein, the exercise by the Secured Party of such
power shall be conclusive evidence of its right to exercise the same.

IN WITNESS whereof this instrument has been duly executed as a deed this [•] day of [•] 2009.

23

 

	 	 	 	 	 	 	 	 	 
	The COMMON SEAL of

	 	 	)	 	 	 	 	 
	FAR EAST ENERGY LIMITED

	 	 	)	 	 		 	 
	was hereunto affixed

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 
	 

	 	 	 	 	 	 

Director	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness Name:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attention:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness Name:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attention:
	 	 	 	 	 	 	 	 

24

 

SCHEDULE 4

Form of written resolution of directors

MIE HOLDINGS CORPORATION (the “Company”)

Written resolution of the board of directors of the Company

TRANSFER OF SHARES

IT IS HEREBY RESOLVED THAT the following transfer of shares be approved:

	 	 	 	 	 
	Transferor	 	Transferee	 	Number and Class of Shares

SHARE CERTIFICATES

IT IS HEREBY RESOLVED THAT on the transfer of the shares pursuant to the foregoing resolutions,
entries be made forthwith upon presentation of the form of transfer notwithstanding any suspension
of the registration of transfers in the Register of Members and that upon the surrender to the
Company of share certificates representing the shares being transferred that they be cancelled and
that any Director be instructed to prepare, sign, seal and deliver on behalf of the Company share
certificates as follows:

	 	 	 	 	 
	Name	 	Class of Shares	 	Share Certificate Number

	 	 	 
	 

By:

	 	 
	 
	 	 
	(Director)
	 	 
	 
	 	 
	Dated:
	 	 
	 
	 	 
	 
	 	 
	 

By:

	 	 
	 
	 	 
	(Director)
	 	 
	 
	 	 
	Dated:
	 	 

25

 

SCHEDULE 5

Form of Undertaking from the Company

MIE HOLDINGS CORPORATION

[•] 2009

Standard Bank PLC

Dear Sirs

MIE HOLDINGS CORPORATION (THE “COMPANY”)

We refer to the Option Agreement dated ______, 2009 between, amongst others, Standard
Bank PLC and Far East Energy Limited (the “Option Agreement”). We also refer to the Share Charge
dated [•] between Far East Energy Ltd. (the “Chargor”) and Standard Bank PLC (the “Secured Party”)
(the “Charge”) whereby, inter alia, the Chargor granted a charge over the Charged Portfolio in
favour of the Secured Party.

Capitalised words and expressions used in this letter which are not expressly defined herein have
the meanings ascribed to them in the Charge.

This letter of undertaking is given pursuant to Clause 3.1.7 of the Charge.

In consideration of the right of the Chargor referred to above and for other valuable consideration
receipt of which is hereby acknowledged, the Company hereby irrevocably and unconditionally
undertakes and covenants to register in the Company’s register of members any and all share
transfers to either or both of the Secured Party or their respective nominees in respect of the
Charged Portfolio submitted to the Company by or on behalf of the Secured Party upon presentation
of the form of transfer and notwithstanding any suspension of the registration of transfers and
pending such registration to recognise the irrevocable proxy and power of attorney in the forms set
out in Parts I and II of Schedule 3 (Forms of Proxy and Power of Attorney) to the Charge.

EXECUTED AS A DEED under the common seal of the Company on [date].

	 	 	 	 	 	 	 	 	 
	The COMMON SEAL of

	 	 	)	 	 	 	 	 
	MIE HOLDINGS CORPORATION

	 	 	)	 	 		 	 
	 
	 	 	 	 	 	 	 
	was hereunto affixed

	 	 	)	 	 	 	 
	in the presence of:

	 	 	)	 	 	 

Director
	 	 
	 
	 	 	 	 	 	 	 	 
	 

Witness Name:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 	 	 
	Attention:
	 	 	 	 	 	 	 	 

26

 

SCHEDULE 6

The Shares

	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	Par Share value of
	shareholder	 	Certificate Number	 	Number of Shares	 	each
	Far East Energy
Limited

	 	[insert]
	 	[          ] Ordinary
Shares
	 	US$0.01

27

 

EXECUTION PAGE

The Chargor

	 	 	 	 	 	 	 	 	 
	The COMMON SEAL of

	 	 	)	 	 	 	 	 
	FAR EAST ENERGY LIMITED

	 	 	)	 	 		 	 
	was hereunto affixed

	 	 	)	 	 	 	 
	in the presence of:

	 	 	)	 	 	 

Director
	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 

Witness Name:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attention:
	 	 	 	 	 	 	 	 

28

 

The Secured Party

Signed for and on behalf of

STANDARD BANK PLC

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	Address:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Fax No.:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Attention:
	 	 	 	 	 	 

29

 

     FIRST
AMENDMENT AND RESTATEMENT AGREEMENT

TO OPTION AGREEMENT

SIGNATURES

	 	 	 	 	 	 	 
	The Seller
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	The COMMON SEAL of

	 	 	)	 	 	 
	FAR EAST ENERGY LIMITED

	 	 	)	 	 	 
	was affixed hereto

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Director
	 	 	 	 	 	 

 

 

FIRST AMENDMENT AND RESTATEMENT AGREEMENT

TO OPTION AGREEMENT

	 	 	 	 	 	 	 	 	 
	The Company
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 	 	 
	MIE HOLDINGS CORPORATION

	 	 	)	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

Signature of witness

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:  

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
 

	 	 	 	 	 	 	 	 

 

 

FIRST AMENDMENT AND RESTATEMENT AGREEMENT

TO OPTION AGREEMENT

	 	 	 	 	 	 	 
	MIE
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTED as a DEED by

	 	 	)	 	 	 
	MI ENERGY CORPORATION

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	
 
 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Signature of witness

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:  

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Address:
 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Occupation:
 

	 	 	 	 	 	 	 	 

 

 

FIRST AMENDMENT AND RESTATEMENT AGREEMENT

TO OPTION AGREEMENT

	 	 	 	 	 	 	 	 	 
	The Buyer
 	 	 	 	 	 	 
	STANDARD BANK PLC
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

Name:
	 	 
	 	 

Name:
	 	 
	 

	 	Title:
	 	 	 	Title:	 	 

 

 

Exhibit C

Dated This [•] day of [•] 2009

By and Among

TPG Star Energy Ltd.

Standard Bank Plc 

Far East Energy Limited 

MI Energy Corporation

AND

MIE Holdings Corporation

 

SHAREHOLDERS’ AGREEMENT

in relation to

MIE HOLDINGS CORPORATION

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.

	 	DEFINITIONS AND INTERPRETATION
	 	 	1	 
	2.

	 	RESTRICTIONS ON TRANSFERABILITY
	 	 	9	 
	3.

	 	PREEMPTION RIGHTS
	 	 	16	 
	4.

	 	[Intentionally left
blank]
	 	 	17	 
	5.

	 	COVENANTS
	 	 	17	 
	6.

	 	BOARD OF DIRECTORS
	 	 	19	 
	7.

	 	MEETINGS OF SHAREHOLDERS
	 	 	22	 
	8.

	 	ANNOUNCEMENTS AND CONFIDENTIALITY
	 	 	23	 
	9.

	 	NOTICES
	 	 	24	 
	10.

	 	GOVERNING LAW AND PRIORITY
	 	 	26	 
	11.

	 	TERMINATION OF AGREEMENT
	 	 	26	 
	12.

	 	ARBITRATION
	 	 	27	 
	13.

	 	CERTAIN ADDITIONAL COVENANTS OF THE
PARTIES
	 	 	28	 
	14.

	 	MISCELLANEOUS
	 	 	29	 

 

 

THIS SHAREHOLDERS’ AGREEMENT (this “Agreement”) is made on the [•] day of [•] 2009 by and
among

	(1)	 	TPG STAR ENERGY LTD., an exempted company incorporated with limited
liability in the Cayman Islands (“TPG”):
	 
	(2)	 	STANDARD BANK PLC, a financial institution incorporated in England (“Standard
Bank”, and together with TPG, each an “Investor” and together the
“Investors”):
	 
	(3)	 	FAR EAST ENERGY LIMITED, a company incorporated in the Hong Kong
Special Administration Region of the People’s Republic of China (“FEEL”);
	 
	(4)	 	MI ENERGY CORPORATION, an exempted company incorporated with limited
liability in the Cayman Islands (“MIE”): and
	 
	(5)	 	MIE HOLDINGS CORPORATION, an exempted company incorporated with
limited liability in the Cayman Islands (the “Company”).

( The Investors and FEEL are hereinafter referred to collectively as the “Shareholders”
and individually as a “Shareholder”. The Investors, FEEL, MIE and the Company are
hereinafter referred to collectively as the “Parties” and individually as a
“Party”).

WHEREAS, TPG, FEEL, the Company and MIE are parties to the Series A Preferred Shares Subscription
and Put Option Agreement dated June 19, 2009 (the “SPA”), pursuant to which TPG will
subscribe for 2,145,749 Series A Preferred Shares to be issued by the Company;

WHEREAS,
Standard Bank, FEEL, Zhang Ruilin (“Zhang”), Zhao Jiangwei (“Zhao”) and Shang
Zhiguo (“Shang” and collectively with Zhang and Zhao, the “FEEL Shareholders”)
entered into the Shares Purchase Agreement dated January 12, 2009 (the “Original
Agreement”) pursuant to which Standard Bank purchased 197,049 Ordinary Shares on the terms and
subject to the conditions contained in the Original Agreement, and the Original Agreement was
amended by the Amendment to Shares Purchase Agreement dated as of June [_____], 2009 by and among Standard Bank, FEEL, the FEEL Shareholders, MIE and the
Company (the “Amendment”);

WHEREAS, following the Completion (as defined below), TPG, Standard Bank and FEEL will be all of
the shareholders of the Company;

WHEREAS, the respective obligations of the parties under the SPA and the Amendment to be performed
at the Completion (as defined in the SPA) and on the Effective Date (as defined in the Amendment)
are conditioned upon the execution and delivery of this Agreement by the Shareholders, the
Company, and MIE; and

WHEREAS, the Parties are desirous of regulating the relationship of the Shareholders inter se and
with the Company.

NOW THEREFORE, upon the terms and subject to the conditions stated herein, the Parties agree as
follows:

	1.	 	DEFINITIONS AND INTERPRETATION

 

 

Page 2

	1.1	 	Definitions. In this Agreement, the following words have the following respective meanings:

	 	 	 
	“Adjourned Meeting”

	 	has the meaning given such term in Clause 6.10.
	 
	 	 
	“Affiliate”

	 	means, with respect to any specified Person, any other Person
who or which, directly or indirectly, controls, is
controlled by, or is under common control with, such specified Person, including, without limitation, any
general partner, officer, director, member, manager or employee of such Person and any investment fund now or
hereafter existing that is controlled by or under common control with one or more general partners or managing members
of, or shares the same management company with, such Person;
provided, that (i) with respect to
TPG, Affiliate shall include any other person that controls, is controlled by, or is under common control with
TPG Star, L.P. and/or its Affiliates, (ii) with respect to Standard Bank, Affiliate shall include any related entity or
division within Standard Bank and any funds managed, controlled or advised by Standard Bank and/or its
Affiliates, and (iii) with respect to FEEL, Affiliate shall include Zhang Ruilin and Zhao Jiangwei and each of
their respective Affiliates.
	 
	 	 
	“Agreement”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“Amendment”

	 	has the meaning given such term in the Recitals.
	 
	 	 
	“Annual General Meeting”

	 	has the meaning given such term in Clause 7.1.
	 
	 	 
	“Board”

	 	means the board of directors for the time being of the Company or the Directors present or deemed present at a duly
convened meeting of the Directors at which a quorum is present.
	 
	 	 
	“Business Day”

	 	means any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in the
Hong Kong SAR or the People’s Republic of China.
	 
	 	 
	“Chairman”

	 	has the meaning given such term in Clause 6.8.
	 
	 	 
	“Companies Law”

	 	means the Companies Law (2007 Revision) of the Cayman Islands, as amended, and every statutory modification or
reenactment thereof for the time being in force.
	 
	 	 
	“Company”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“Company Employee Share
Option Scheme”

	 	has the meaning given such term in Clause 5.3.
	 
	 	 
	“Competing Business”

	 	means, in respect of any Person, any business engaged by such Person that competes, directly or indirectly, with the
Company or any of its Subsidiaries.

 

 

Page 3

	 	 	 
	“Completion”

	 	means completion of the issuance and subscription of the Series A Preferred Shares
under the SPA.
	 
	 	 
	“Completion Date”

	 	means the date of the Completion,
being [    ] 2009.
	 
	 	 
	“control”

	 	means possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such other Person (whether through
ownership interest, by contract or otherwise); provided,
however, that, in any
event, any Person that owns directly or indirectly more than fifty percent (50%) of the ordinary voting
interests in such other Person shall be deemed to control such other Person.
	 
	 	 
	“Cut-Off Date”

	 	has the meaning given such term in Clause 2.2(b).
	 
	 	 
	“Debt Settlement Transactions”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“Director”

	 	means an appointed director of the Company, including, where applicable, an
alternate director.
	 
	 	 
	“Effective Date”

	 	has the meaning given such term in the Amendment.
	 
	 	 
	“Electing Offeree”

	 	has the meaning given such term in Clause 2.2(b).
	 
	 	 
	“Encumbrance”

	 	means any deed to secure debt, assignment, security right, pledge, lien, charge,
option, encumbrance and claim or right of any kind of third Persons, whether
voluntarily incurred or arising by operation of law, including any agreement to
give any of the foregoing in the future, and in relation to shares in the issued
shares capital of a company, any right to appoint a proxy, exercisable by any
party other than the holder of such shares.
	 
	 	 
	“Extended Cut-Off Date”

	 	has the meaning given such term in Clause 2.2(c).
	 
	 	 
	“Extended Preemption Cut-Off Date”

	 	has the meaning given such term in Clause 3.2(b).
	 
	 	 
	“FEEL”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“FEEL Directors”

	 	has the meaning given such term in Clause 6.2(b).
	 
	 	 
	“FEEL Shareholders”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“General Meeting”

	 	means any general meeting of the Shareholders.
	 
	 	 
	“HK1AC”

	 	has the meaning given such term in Clause 12.2.
	 
	 	 
	“Indebtedness”

	 	means all (i) funded indebtedness of the Company and its Subsidiaries,
including, (A) all funded obligations for borrowed

 

 

Page 4

	 	 	 
	 

	 	money, (B) funded obligations evidenced by bonds, notes, debentures, loan
agreements or similar instruments, (C) otherwise as an account party in respect of
or arising under letters of credit, bankers’ acceptances, bank guaranties, surety
bonds and similar instruments, (ii) the aggregate amount required to be
capitalized under leases under which the Company or any of its Subsidiaries is the
lessee, (iii) obligations of the Company or any of its Subsidiaries for deferred
purchase price of property or services (other than trade accounts payable in the
ordinary course of business), and (iv) all accrued and unpaid interest on any of
the foregoing.
	 
	 	 
	“Investor” or “Investors”

	 	have the meanings given such terms in the Preamble.
	 
	 	 
	“JMC Budget”

	 	means an annual budget as approved by the Joint Management Committee under the
Company’s existing production sharing contracts with China National Petroleum
Corporation.
	 
	 	 
	“Joint Management Committee”

	 	has the meaning given such term in the Production Sharing Contracts.
	 
	 	 
	“Management Accounts”

	 	means the unaudited management accounts of the Company and of each of the
Company’s Subsidiaries, in the agreed form.
	 
	 	 
	“Material Subsidiary”

	 	means MIE and any other member of the MIE Group having more than 10% of the assets
of the MIE Group as shown in the latest financial statements of that entity.
	 
	 	 
	“MIE”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“ME Group”

	 	means the Company, its Subsidiaries and other entities controlled directly or
indirectly by the Company.
	 
	 	 
	“ME Loan”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“Minimum Shareholding Percentage”

	 	means a Shareholding Percentage of not less than five percent (5%).
	 
	 	 
	“New Securities”

	 	means Shares or rights, option, warrants or other securities convertible into or
exercisable or exchangeable for Shares after the date of this Agreement, other
than Shares issued or issuable:
	 
	 	 
	 

	 	(a)   pursuant to the Company Employee Share Option Scheme in accordance with
Clause 5.3;

	 
	 	 
	 

	 	(b)   upon conversion of the Series A Preferred Shares;

	 
	 	 
	 

	 	(c)   as a dividend or other distribution on the Series A Preferred Shares;

 

 

Page 5

	 	 	 
	 

	 	(d)   pursuant to a Qualified IPO;

	 
	 	 
	 

	 	(e)   in connection with any stock split or stock dividend; and

	 
	 	 
	 

	 	(f)   pursuant to the Standard Bank Equity Agreements.

	 
	 	 
	“Non-Competing Person”

	 	means any Person that is not engaged, directly or indirectly, in a Competing Business, it being understood that TPG and Standard
Bank are Non-Competing Persons.
	 
	 	 
	“Non-Offering Shareholders”

	 	has the meaning given such term in Clause 2.2(a).
	 
	 	 
	“Notices”

	 	has the meaning given such term in Clause 9.
	 
	 	 
	“OFAC”

	 	has the meaning given such term in Clause 13.5.
	 
	 	 
	“Offered Shares”

	 	has the meaning given such term in Clause 2.2(a).
	 
	 	 
	“Offering Shareholder”

	 	has the meaning given such term in Clause 2.2(a).
	 
	 	 
	“Ordinary Shares”

	 	means the ordinary shares, US$0.01 par value each, of the Company.
	 
	 	 
	“Participant”

	 	has the meaning given such term in Clause 2.3(b).
	 
	 	 
	“Party” or “Parties”

	 	have the meanings given such terms in the Preamble.
	 
	 	 
	“Person”

	 	means any natural person, individual, partnership, joint venture, company, corporation, trust, estate, juridical entity,
firm, association, statutory body, unincorporated organization, or governmental authority or any other entity whether
acting in an individual, fiduciary or other capacity.
	 
	 	 
	“Pre-Approved Affiliate Transaction”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“Preemption Cut-Off Date”

	 	has the meaning given such term in Clause 3.2(a).
	 
	 	 
	“Production Sharing Contracts”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“Proposed Transfer”

	 	means any Transfer of any Shares proposed by any Shareholder.
	 
	 	 
	“Prospective Transferee”

	 	means any Person to whom a Shareholder proposes to make a Proposed Transfer, including a Proposed Transfer by FEEL pursuant to
Clause 2.3.
	 
	 	 
	“Qualified IPO”

	 	means an underwritten public offering by the Company of its

 

 

Page 6

	 	 	 
	 

	 	Shares on a Recognised Stock Exchange pursuant to a
prospectus or offering circular under applicable securities laws resulting in the shares of the Company
becoming freely tradable.
	 
	 	 
	“Recognised
Stock Exchange”

	 	means NASDAQ, the New York Stock Exchange, the Toronto
Stock Exchange, the Australian Securities Exchange, the Euronext Paris, the Tokyo Stock Exchange, the
Deutsche Borse, or the main board of any of the Stock Exchange of Hong Kong Limited, the Singapore Stock
Exchange or the London Stock Exchange, or any other stock exchange of equal standing reasonably
agreed by TPG.
	 
	 	 
	“Remaining New
Securities”

	 	has the meaning given such term in Clause 3.2(c).
	 
	 	 
	“Required
Shareholding
Ownership Expiration
Date”

	 	has the meaning given such term in Clause 13.3.
	 
	 	 
	“Reserved Matter”

	 	means any of the matters affecting the MIE Group set forth in Schedule 1.
	 
	 	 
	“Restated Articles”

	 	means the Amended and Restated Memorandum and Articles of the Company, as set out in Exhibit 1 to the SPA (as may
be amended from time to time).
	 
	 	 
	“Scheduled
Completion Date”

	 	has the meaning given such term in Clause 2.2(e).
	 
	 	 
	“Series A Preferred
Shareholder”

	 	means each holder of the Series A Preferred Shares.
	 
	 	 
	“Series A Preferred
Shares”

	 	means the Series A preferred shares, US$0.01 par value each, in the Company having the rights attached thereto as set
out in the Restated Articles.
	 
	 	 
	“Shareholders”

	 	means FEEL, TPG and Standard Bank, and each Person to whom the rights of a Shareholder are assigned pursuant to Clause
14.1, each Person who hereafter becomes a signatory to this Agreement pursuant to Clause 2.6 and any one of
them, as the context may require.
	 
	 	 
	“Shareholding
Percentage”

	 	means, with respect to any Shareholder, the ratio (expressed as a percentage) of the number of Shares held by such
Shareholder to the aggregate number of all the issued Shares. For the purposes of determining the number of
Shares held by the Shareholders, all Series A Preferred Shares shall be deemed to have been converted into
Ordinary Shares at the then-applicable conversion ratio.

 

 

Page 7

	 	 	 
	 
	 	 
	“Shares”

	 	means the Ordinary Shares and Series A Preferred Shares, and any other shares of the Company, whether fully or partly
paid.
	 
	 	 
	“SPA”

	 	has the meaning given such term in the first Recital.
	 
	 	 
	“Standard Bank”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“Standard Bank
Equity Agreements”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“Standard Bank
Facility”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“Subsidiary”

	 	means, with respect to any Person:
 
	 

	 	(a)  any company or corporation more than fifty percent (50%) of whose shares of any class or classes having by the terms
thereof ordinary voting power to elect a majority of the directors of such company or corporation
(irrespectively of whether or not at the time shares of any class or classes of such company or corporation
shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such
Person directly or indirectly through one or more Subsidiaries of such Person; and

	 
	 	 
	 

	 	(b)  any partnership, association, joint venture or other entity in which such Person directly or indirectly through one
or more Subsidiaries of such Person has more than a fifty percent (50%) equity interest.

	 
	 	 
	“Tag-Along Notice”

	 	has the meaning given such term in Clause 2.3(a).
	 
	 	 
	“Tag-Along Offer”

	 	has the meaning given such term in Clause 2.3(a).
	 
	 	 
	“Tag-Along Offer
Purchase Price”

	 	means the higher of (x) the weighted average price per Share of the
aggregate Shares (i) to be Transferred by the Tag-Along Seller to the Prospective Transferee pursuant to Clause
2.3 and (ii) Transferred by the Tag-Along Seller and its Affiliates during the 12-month period prior to the
date of the Tag-Along Notice and (y) the price per Share of the Shares to be transferred by the Tag-Along
Seller to the Prospective Transferee pursuant to Clause 2.3.
	 
	 	 
	“Tag-Along Seller”

	 	has the meaning given such term in Clause 2.3(a).
	 
	 	 
	“TPG”

	 	has the meaning given such term in the Preamble.
	 
	 	 
	“TPG Director”

	 	has the meaning given such term in Clause 6.2(a).
	 
	 	 
	“Trade Sale”

	 	means a sale of all of the Shares.
	 
	 	 
	“Transfer”

	 	means the direct or indirect sale (including by merger or sale of
equity of a Person or an Affiliate of a Person having shares), offer

 

 

Page 8

	 	 	 
	 

	 	to sell, pledge, mortgage, encumbrance, gift, assignment, transfer
or disposition of Shares, or any rights or interest therein or
afforded thereby, or entering into any contract or agreement to do
any of the foregoing, voluntarily or involuntarily.
	 
	 	 
	“Transfer Notice”

	 	has the meaning given such term in Clause 2.2(a).
	 
	 	 
	“Transaction
Agreements”

	 	has the meaning given such term in the SPA.
	 
	 	 
	“UNCITRAL Rules”

	 	has the meaning given such term in Clause 12.2(a).
	 
	 	 
	“US$”

	 	means the lawful currency of the United States of America.
	 
	 	 
	“Voting Percentage”

	 	means, with respect to any Shareholder at any particular time, the ratio (expressed as a percentage) of the number of
votes which may be cast at that time at a meeting of the shareholder of the Company in relation to Shares
owned, directly or indirectly, by such Shareholder and its Affiliates to the aggregate number of all the votes
which may be cast at that time at any such meeting of the shareholders in relation to all issued Shares.

	1.2	 	Principles of Construction.

	 	(a)	 	Any document expressed to be in “agreed form” means a document in or
substantially in the form approved by, and signed for identification purposes by
or on behalf of, all the Parties.
	 
	 	(b)	 	The words “hereof” “herein” and “hereunder” and words of similar import
when used in this Agreement shall refer to this Agreement as a whole and not
to any particular provision of this Agreement.
	 
	 	(c)	 	The words “include,” “including” and “among other things” shall be deemed
to be followed by “without limitation” or “but not limited to” whether or not
they are followed by such phrases or words of similar import.
	 
	 	(d)	 	Unless the context clearly requires otherwise, “or” is not exclusive.
	 
	 	(e)	 	All references herein to a Party’s “knowledge” shall mean, with respect to
the matter in question, if such Party (or any of the executive officers of such
Party) has, or would reasonably be expected to have, after conducting a
reasonable investigation, actual knowledge of the matter.
	 
	 	(f)	 	Any reference to a statutory provision shall include such provision and
any regulations made in pursuance thereof as from time to time modified or
re-enacted whether before or after the date of this Agreement.
	 
	 	(g)	 	References to the Preamble, Recitals, Clauses and Schedules are to the
preamble, recitals and clauses of and schedules to this Agreement.

 

 

Page 9

	 	(h)	 	The headings are for convenience only and shall not affect the interpretation
hereof.
	 
	 	(i)	 	Unless the context otherwise requires or permits, references to the singular
number shall include references to the plural number and vice versa and references to
natural persons shall include bodies corporate.
	 
	 	(j)	 	This Agreement is the result of negotiations between, and has been reviewed
by, the respective Parties. Accordingly, this Agreement shall be deemed to be the
product of all Parties thereto, and there shall be no presumption that an ambiguity
should be construed in favor of or against any of the Shareholders, MIE or the
Company, as the case may be, thereto solely as a result of such Party’s actual or
alleged role in the drafting of any such agreement.
	 
	 	(k)	 	Any reference in this Agreement to a Transaction Agreement shall include any
schedules and exhibits attached to it and shall include that Transaction Agreement as
amended, modified or supplemented from time to time and any document which amends,
modifies or supplements that Transaction Agreement.
	 
	 	(l)	 	This Agreement may be translated into one or more languages other than
English. In the event of any inconsistency or contradiction between the texts, this
English text shall prevail.

	2.	 	RESTRICTIONS ON TRANSFERABILITY
	 
	2.1	 	Transfer Restrictions.

	 	(a)	 	Prior to the date falling one (1) year after the Completion Date, no
Shareholder or any Affiliate of such Shareholder shall Transfer any of its Shares;
provided, however, that:

	 	(i)	 	TPG and its Affiliates may Transfer Shares to one (1) or more
limited partners of TPG Star, L.P. or its Affiliates for a minimum of
US$10,000,000 per Person, so long as, after giving effect to all such
Transfers, TPG and its Affiliates hold Shares having a Shareholding Percentage
of at least six percent (6%);
	 
	 	(ii)	 	Standard Bank and its Affiliates may Transfer Shares to one
(1) Person so long as, after giving effect to such Transfer, Standard Bank and
its Affiliates hold Shares having a Shareholding Percentage of at least one
percent (1%); and
	 
	 	(iii)	 	any Transfer effected by any Shareholder in accordance with
Clauses 2.2, 2.3 or 2.7 of this Agreement, Clause 7 or 8.2 of the SPA or the
Standard Bank Equity Agreements shall be permitted.

	(b)	 	On and after the date falling one (1) year after the Completion Date, no
Shareholder or any Affiliate of such Shareholder shall Transfer any of its
Shares; provided, however, that:

 

 

Page 10

	 	(i)	 	subject to Clause 13.3, any Transfer effected by any
Shareholder in accordance with Clauses 2.2, 2.3 or 2.7 of this Agreement,
Clause 7 or 8.2 of the SPA or the Standard Bank Equity Agreements shall be
permitted.

	 	(c)	 	At any time but subject to Clause 13.3, FEEL may Transfer Shares having an
aggregate Shareholding Percentage of up to five percent (5%) to persons who are bona
fide directors, officers or employees of the Company or MIE as of the date hereof, but
any such Transfer of Shares to any one director, officer or employee shall not result
in any one such transferee holding an aggregate Shareholding Percentage exceeding two
percent (2%).

	2.2	 	Right of First Refusal.

	 	(a)	 	Except for a Transfer in accordance with Clause 2.1 (a), 2.1(b), 2.1(c), 2.3
or 2.7 of this Agreement, Clause 7 or 8.2 of the SPA or the Standard Bank Equity
Agreements if at any time, any Shareholder (the “Offering Shareholder”)
desires to Transfer all or part of its Shares (the “Offered Shares”) to a
Prospective Transferee, the other Shareholders (the
“Non-Offering Shareholders”) shall have the right of first refusal to purchase the Offered
Shares upon the terms and subject to the conditions hereinafter provided.
Prior to any Proposed Transfer of Offered Shares, the Offering Shareholder
shall deliver to each Non-Offering Shareholder (with a copy to the Company)
a written irrevocable bona fide offer to sell the Offered Shares to the Non-
Offering Shareholders stating the number of Shares to be sold, the price and
terms thereof (which shall not include any warranties or indemnities (other
than capacity and authority) from the transferee) and the identity of the
Prospective Transferee (a “Transfer Notice”).
	 
	 	(b)	 	Each Non-Offering Shareholder shall have a period of thirty (30) days after
receipt of a Transfer Notice within which to elect to purchase its pro rata share
(based on the proportion its Shareholding Percentage bears to the aggregate
Shareholding Percentage of all Non-Offering Shareholders) of any or all such
Offered Shares on the terms offered to the Prospective Transferee in the
Transfer Notice, which election shall be made by an irrevocable written notice
delivered by each electing Non-Offering Shareholder to the Offering
Shareholder (with a copy to the Company and each of the other Non-Offering
Shareholders). The last day of such 30-day period is hereinafter referred to as
the “Cut-Off Date”. Any new terms, conditions or price offered by the
Offering Shareholder to any Non-Offering Shareholder during such 30-day
period shall be offered to each Non-Offering Shareholder and shall be set forth
in a new Transfer Notice to each such Non-Offering Shareholder, which new
Transfer Notice shall trigger a new 30-day period as provided above. Any
election to purchase the Offered Shares must be in accordance with the terms
of the Transfer Notice then in effect, and otherwise must be unconditional
(except that such purchase may be subject to the prior receipt of statutory or
regulatory approvals necessary to complete such purchase). Non-Offering
Shareholders who elect to purchase the Offered Shares pursuant to this Clause

 

 

Page 11 

	 	 	 	2.2(b) are hereinafter referred to individually as an “Electing Offeree” and
collectively as the “Electing Offerees”.
	 
	 	(c)	 	If some, but not all, of the Non-Offering Shareholders do not elect to purchase their pro
rata share of the Offered Shares by the Cut-Off Date, each of the Electing Offerees shall have
the right, exercisable for a period of fifteen (15) days after the Cut-Off Date (the last day
of which shall be the “Extended Cut-Off Date”), to purchase all or any portion of the
Offered Shares not purchased by the Electing Offerees pursuant to Clause 2.2(b) pro rata
(based on the proportion its Shareholding Percentage bears to the aggregate Shareholding
Percentage of the other Electing Offerees).
	 
	 	(d)	 	The consideration for such Offered Shares shall be paid in full in cash, or in such other
form as may be agreed between the Offering Shareholder and the Electing Offerees.
	 
	 	(e)	 	The completion of each such purchase shall take place on the thirtieth (30th) day after the
Cut-Off Date or Extended Cut Off Date (as the case may be), or if such day is not a Business
Day, then on the next such Business Day (the “Scheduled Completion Date”). The
Scheduled Completion Date may be amended upon the mutual agreement of the Offering Shareholder
and the Electing Offerees, and in any case shall be extended to the extent necessary in order
to comply with applicable laws and regulations (including obtaining any necessary governmental
approvals for the Transfer of such Offered Shares). On or before the relevant
Scheduled Completion Date, the Offering Shareholder shall surrender the certificate or
certificates representing the Offered Shares to be purchased on such Scheduled Completion Date
(or, if such Offering Shareholder alleges that such certificate has been lost, stolen or
destroyed, a lost certificate affidavit and agreement reasonably acceptable to the Company to
indemnify the Company against any claim that may be made against the Company on account of the
alleged loss, theft or destruction of such certificate) to the Electing Offerees, against
payment in full of the consideration for such Offered Shares in accordance with the provisions
in this Clause 2.2.
	 
	 	(f)	 	Upon any election of the right to purchase such Offered Shares by an Electing Offeree, the
Offering Shareholder and such Electing Offeree shall use their reasonable best efforts to
secure any approvals required in connection therewith.
	 
	 	(g)	 	Notwithstanding the foregoing, if the Non-Offering Shareholders have not exercised their
right to purchase all the Offered Shares by the end of the Cut-Off Date or the collective
Electing Offerees have not offered to purchase all of the Offered Shares by the end of the
Extended Cut-Off Date, then the Non-Offering Shareholders shall be deemed to have forfeited
any right to purchase such Offered Shares, and the Offering Shareholder shall be free to sell
all, but not less than all, of the Offered Shares to the Prospective Transferee substantially
on the terms and conditions set forth in the Proposed Transfer Notice not later than the
sixtieth (60th) day after the Cut-Off Date or the Extended Cut-Off Date, as the case may be.

 

Page 12 

	 	(h)	 	If the Electing Offeree(s) fail(s) to complete the purchase of all of the
Offered Shares on the Scheduled Completion Date in accordance with the terms of
this Agreement and the applicable Transfer Notice and such failure is not remedied
within seven (7) days of the Scheduled Completion Date, then the Offering
Shareholder may sell all (but not less than all) of the Offered Shares to the
Prospective Transferee not later than the sixtieth (60th) day after the Scheduled
Completion Date. If the necessary governmental approvals to an Electing Offeree’s
purchase of any Offered Shares are not obtained within a reasonable period of time
after the end of the 60-day period following the Cut-Off Date or the Extended
Cut-Off Date, as the case may be, such Offered Shares must be re-offered to the
Non-Offering Shareholders (other than the Electing Offeree) as Offered Shares under
this Clause 2.2.
	 
	 	(i)	 	Any sale to a Prospective Transferee pursuant to either Clause 2.2(g) or
Clause 2.2(h) shall be on terms and conditions (including, without limitation, the
price per Share) no more favourable to such Prospective Transferee than those set
forth in the applicable Transfer Notice received by the Non-Offering Shareholders, and
the Offering Shareholder must sell all of the Offered Shares and not some only.
Concurrently with any such sale to a Prospective Transferee who is not then a party to
this Agreement and, as a condition precedent for such Transfer, such Prospective
Transferee shall comply with the provisions of Clause 2.6.
	 
	 	(j)	 	If all of the Offered Shares are not sold to any Person within the 60-day
period specified in Clause 2.2(g) or Clause 2.2(h), then the rights of the other
Shareholders under this Clause 2.2 shall be fully restored and reinstated as if such
offer had never been made and the Offering Shareholder must again follow the procedures
set forth in this Clause 2.2 prior to the sale of any of its Shares to any Person,
except for Transfers otherwise permitted by this Agreement.

	2.3	 	Tag-Along Rights.

	 	(a)	 	Except for a Transfer pursuant to Clause 2.1(a), 2.1(b), 2.1(c), or 2.7 of
this Agreement, Clause 7 or 8.2 of the SPA, or the Standard Bank Equity Agreements,
and subject always to Clause 2.2, if at any time FEEL (“Tag-Along Seller”)
proposes to Transfer Shares to a Prospective Transferee that, when aggregated with all
other Shares Transferred by such Tag-Along Seller and its Affiliates, would result in
such Tag-Along Seller owning less than fifty percent (50%) of the then total issued
and outstanding Shares, such Tag Along Seller shall promptly give written notice to
the Company (“Tag-Along Notice”) and each of the other Shareholders at least
forty-five (45) days prior to the completion of such Transfer and shall cause the
Prospective Transferee to make an offer for all of the Shares of such other
Shareholders on the same terms and conditions of the Proposed Transfer (provided that
the Investors shall only provide customary representations of title and capacity
excluding any representations or warranties with respect to the business, assets or
liabilities or financial condition of the Company) (the “Tag-Along Offer”),
except that the price per Share pursuant to the Tag-Along Offer shall be the Tag-Along
Offer Purchase Price. The Tag-Along Notice shall describe in reasonable detail the

 

Page 13 

	 	 	 	Proposed Transfer including, without limitation, the class and number of Shares to be
sold, the price and terms thereof and the identity of the Prospective Transferee and
attach a copy of the Tag-Along Offer. Any subsequent Transfers of Shares by persons other
than the Investors shall be subject to the same tag-along right under this Clause 2.3.
	 
	 	(b)	 	Each non-Transferring Shareholder shall have a period of twenty (20) days after receipt of a
Tag-Along Notice within which to accept the Tag-Along Offer, which acceptance shall be made by
an irrevocable written notice delivered by each electing  non-Transferring
Shareholder (each, a “Participant”) to the Tag-Along Seller and the Prospective
Transferee (with a copy to the Company and each of the other non-Transferring Shareholders).
No holders of Series A Preferred Shares shall be entitled to sell Series A Preferred Shares
pursuant to this Clause 2.3, but shall be permitted to convert or exercise its applicable
portion of Series A Preferred Shares for Ordinary Shares concurrently with, and subject to,
the consummation of the Proposed Transfer, in which case each of the other Shareholders shall
take all such steps necessary to be taken by each of them respectively in order to give effect
to such conversion or exercise.
	 
	 	(c)	 	Each Participant shall effect its participation in the Transfer by delivering to the
Tag-Along Seller (to hold in trust as agent for such Participant), at least three (3) Business
Days prior to the date scheduled for such Transfer as set forth in the Tag-Along Notice, one
(1) or more share transfer certificate(s) duly executed by the Participant, together with any
share certificates, representing the Shares which such Participant is entitled to Transfer in
accordance with Clause 2.3(b). Such certificate or certificates or other instruments,
as applicable, shall be delivered by the Tag-Along Seller to the Proposed Transferee on the
date scheduled for such Transfer in consummation of the Transfer pursuant to the terms and
conditions specified in the Transfer Notice and such Proposed Transferee shall remit to each
such Participant the portion of the sale proceeds to which such Participant is entitled by
reason of its participation in such sale. The completion of the Transfer by the Tag-Along
Seller and the Transfer by each Participant shall occur simultaneously. The Tag-Along Seller
and the Participants shall be responsible for their respective pro rata portions of the
aggregate transaction costs and expenses incurred by the Tag-Along Seller and the Participants
in connection with such Transfers and the Tag-Along Seller and the Participants shall
reimburse the other to the extent required to give effect to such expense allocation. For
purposes of this Clause 2.3(c), “pro rata portion” shall mean for each Participant a fraction,
the numerator of which is the number of Shares to be Transferred by such Participant pursuant
to this Clause 2.3 and the denominator of which is the total number of Shares to be
Transferred pursuant to this Clause 2.3.
	 
	 	(d)	 	The non-exercise of the rights of any of the non-Transferring Shareholders to participate in
one (1) or more Transfers of Shares under this Clause 2.3 shall not adversely affect its right
to participate in subsequent Transfers of Shares subject to this Clause 2.3.
	 
	 	(e)	 	The Tag-Along Seller shall not be permitted to Transfer Shares in circumstances where Clause
2.3 is applicable unless the sale of Shares by Participants exercising

 

Page 14 

	 	 	 	their rights under this Clause 2.3 is effected simultaneously, and any attempted
Transfer by the Tag-Along Seller in violation hereof shall be null and void.

	 	(e)	 	Notwithstanding anything contained in this Clause 2.3 to the contrary, there
shall be no liability on the part of the Tag-Along Seller to any other Shareholder in
the event no Shares are sold (by any of the Tag-Along Seller or any Participant) to
the Proposed Transferee even if the provisions of this Clause 2.3 have been
triggered.

	2.4	 	Restrictive Legend.
	 
	 	 	Each certificate representing the Shares or any other securities issued in respect of the
Shares upon any stock splits, stock dividend, recapitalisation, merger or similar event,
shall be stamped or otherwise imprinted with a legend in substantially the following form
(in addition to any legends required by agreement or by applicable securities laws):
	 
	 	 	THE SHARES REPRESENTED BY THIS SHARE CERTIFICATE ARE SUBJECT TO AND MAY BE TRANSFERRED ONLY
IN COMPLIANCE WITH THE SHAREHOLDERS’ AGREEMENT DATED AS OF [•] 2009, AMONG THE HOLDER OF
THIS CERTIFICATE, CERTAIN OTHER SHAREHOLDERS OF THE COMPANY, MI ENERGY CORPORATION, AND THE
COMPANY.

	2.5	 	Authorisation; Effect of Failure to Comply.

	 	(a)	 	The Shareholders shall cause the Company to take any and all steps for and on
behalf of a transferring Shareholder to give effect to the Transfer of Shares pursuant
to this Clause 2.
	 
	 	(b)	 	Any Proposed Transfer not made in compliance with the requirements of this
Agreement shall be null and void ab initio, shall not be recorded on the books of the
Company or its transfer agent and shall not be recognized by the Company. Each
Party acknowledges and agrees that any breach of this Agreement would result in
substantial harm to the other Parties for which monetary damages alone could not
adequately compensate. Therefore, the Parties unconditionally and irrevocably agree
that any non-breaching Party shall be entitled to seek protective orders, injunctive
relief and other remedies available at law or in equity (including, without
limitation, seeking specific performance or the rescission of purchases, sales and
other Transfers of Shares not made in strict compliance with this Agreement).
	 
	 	(c)	 	If any Shareholder becomes obligated to sell any Offered Shares to any
Exercising Offeree under this Agreement and fails to deliver a share transfer
certificate duly executed by the Shareholder, together with any share
certificates, representing such purchased Offered Shares and Transfer the Offered
Shares in accordance with the terms of this Agreement, such Exercising Offeree may,
at its option, in addition to all other remedies it may have, send to such Shareholder
the purchase price for such Offered Shares as is herein specified and request the
Company to redeem and cancel on its books

 

Page 15 

	 	 	 	the relevant Shares to be sold and issue the relevant Shares to such Exercising
Offeree.

	2.6	 	Adherence on Transfer or Issue.

	 	(a)	 	Any Transfer of Shares (other than a Transfer of Shares pursuant to Clause
2.1(c)) shall require the prior adherence by the transferee to the terms of this
Agreement. The transferee to whom a Shareholder is to Transfer Shares shall execute and
deliver to each other Shareholder and the Company a deed of adherence to this
Agreement, in form and substance reasonably satisfactory to the Company, indicating
such transferee’s agreement to be bound by the terms hereof in the same manner as the
Transferring Shareholder and shall thereby become bound by the terms and conditions of
this Agreement as a Party and a Shareholder hereunder and be entitled to the same
rights to the same extent and in the same manner as the Transferring Shareholder.
	 
	 	(b)	 	Any issue of Shares by the Company to a Person who is not already a Party and a
Shareholder shall require the prior adherence by such Person to the terms of this
Agreement. Such Person shall execute and deliver to each Shareholder and the Company a
deed of adherence to this Agreement, in form and substance reasonably satisfactory to
the Company, and shall thereby become bound by the terms and conditions of this
Agreement as a Party and a Shareholder hereunder and be entitled to the same rights to
the same extent and in the same manner as a Shareholder.

	2.7	 	Exempt Transfers.

	 	(a)	 	Notwithstanding anything to the contrary herein, the foregoing provisions of
this Clause 2 shall not apply to a Transfer by a Shareholder of all or part of its
Shares to an Affiliate provided, however, that any such Transfer shall
be in accordance with each of the following terms:

	 	(1)	 	such Shareholder shall provide written notice of such Transfer
to each other Shareholder;
	 
	 	(2)	 	the transferee to whom the Shareholder is to Transfer the
Shares is a Non-Competing Person and shall execute and deliver to each other
Shareholder and the Company a deed of adherence to this Agreement, in form
and substance reasonably satisfactory to the Company, indicating such
transferee’s agreement to be bound by the terms hereof and shall thereby become
bound by the terms and conditions of this Agreement as a Party and a
Shareholder hereunder in the same manner as the Transferring Shareholder and be
entitled to the same rights to the same extent and in the same manner as the
Transferring Shareholder;
	 
	 	(3)	 	such Shareholder shall remain bound by its obligations under
this Agreement; and
	 
	 	(4)	 	if any such transferee Affiliate shall cease to be an Affiliate
of such Shareholder, any Shares held by such transferee shall be promptly

 

Page 16 

	 	 	 	retransferred to such Shareholder or transferred to another of such
Shareholder’s Affiliates.

	 	(b)	 	Notwithstanding anything to the contrary herein, the provisions of this Clause
2 shall not apply to (i) the sale of Shares pursuant to a Qualified IPO or any
Transfer after a Qualified IPO; and (ii) the creation of Encumbrances over the Shares
pursuant to the Standard Bank Facility.

	3.	 	PREEMPTION RIGHTS
	 
	3.1	 	Preemption Rights. The Company hereby grants to each Shareholder the right to
purchase a pro rata portion (based on its Shareholding Percentage) of New Securities that the
Company may, from time to time propose to sell and issue.
	 
	3.2	 	Preemption Rights Procedure. The preemption rights granted under this Clause 3
shall be subject to the following provisions:

	 	(a)	 	In the event that the Company proposes to undertake an issuance of New
Securities, it shall give each Shareholder written notice of its intention, describing
the type of New Securities, the price, and the general terms upon which the Company
proposes to issue the same. Each Shareholder shall have thirty (30) days after receipt
of such notice (the “Preemption Cut-Off Date”) to agree to purchase up to its
pro rata portion (based on its Shareholding Percentage) of such New Securities at the
price and upon the terms specified in the notice by giving written notice to the
Company and stating therein the quantity of New Securities to be purchased. If a
Shareholder fails to exercise the right to purchase its full pro rata portion (based on
its Shareholding Percentage) of the New Securities, each of the other participating
Shareholders may exercise an additional right to purchase, on a pro rata basis (based
on the proportion its Shareholding Percentage bears to the aggregate Shareholding
Percentage of the participating Shareholders), the New Securities not
previously purchased.
	 
	 	(b)	 	If some (but not all) of the Shareholders do not elect to purchase their pro
rata portion of such New Securities by the Preemption Cut-Off Date, each of the
participating Shareholders shall have the right, exercisable for a period of fifteen
(15) days after the Preemption Cut-Off Date (the last day of which shall be the
“Extended Preemption Cut-Off Date”), to purchase all or any portion of the New
Securities not purchased by the participating Shareholders pursuant to Clause 3.2(a)
pro rata (based on the proportion its Shareholding Percentage bears to the aggregate
Shareholding Percentage of the other participating Shareholders).
	 
	 	(c)	 	If none of the Shareholders have exercised their right to purchase the New
Securities by the end of the Preemption Cut-Off Date or the collective participating
Shareholders have not offered to purchase all of the New Securities by the end of the
Extended Preemption Cut-Off Date (such unpurchased New Securities, the
“Remaining New Securities”), then the Company may sell all (but not less than
all) of the Remaining New Securities to a third Person.

 

Page 17 

	 	(d)	 	Regardless of whether the Shareholders exercise their preemption rights granted
under this Clause 3 by the Preemption Cut-Off Date or the Extended Preemption
Cut-Off Date (as the case may be), the Company shall have sixty (60) days after the
Extended Preemption Cut-Off Date to sell (or enter into an agreement pursuant to
which the sale of New Securities covered thereby shall be closed, if at all, within
sixty (60) days from the date of said agreement) the New Securities at a price and
upon terms no more favourable to the purchasers thereof than specified in the
Company’s notice to the Shareholders, provided that such purchaser(s) shall
execute and deliver to each other Shareholder and the Company an instrument of
ratification and accession to this Agreement, in form and substance
satisfactory to the Shareholders, indicating such purchaser’s agreement to
be bound by the terms hereof and shall thereby become bound by the terms and
conditions of this Agreement. In the event the Company has not sold the New
Securities within such 60-day period (or sold and issued New Securities in
accordance with the foregoing within sixty (60) days from the date of such
agreement) the Company shall not thereunder issue or sell any New Securities without
first offering such New Securities to the Shareholders in the manner provided above.
The completion of the sale of New Securities to the participating Shareholders and
other purchasers shall occur simultaneously.
	 
	 	(e)	 	The preemption rights granted under this Clause 3 shall expire immediately upon
the occurrence of a Qualified IPO or a Trade Sale.

	4.	 	[Intentionally left blank.]
	 
	5.	 	COVENANTS
	 
	5.1	 	Information Rights. The Company shall furnish to each Shareholder having, when
aggregated with the Shareholding Percentages of its Affiliates, a Minimum Shareholding
Percentage, provided, however, that so long as Standard Bank holds Shares of the
Company, the Company shall also furnish to Standard Bank and its Affiliates:

	 	(a)	 	monthly Management Accounts (where available) and quarterly operations reports
within thirty (30) days of the end of each quarterly period, each prepared in a manner
consistent with the manner in which such accounts and reports were prepared prior to
the date thereof;
	 
	 	(b)	 	annual audited financial reports (including the notes, reports, statements and
other documents which are required by law or applicable accounting standards to be, or
are otherwise, annexed to the same) of the Company and of each of the Company’s
Subsidiaries, and any revisions and/or supplements to the same, within one hundred and
twenty (120) days of the end of each financial year, prepared in a manner consistent
with the manner in which such reports were prepared prior to the date thereof;
	 
	 	(c)	 	annual budgets (including the notes, reports, statements and other documents
which are annexed to the same) of the Company and of each of the Company’s
Subsidiaries, and any updates, revisions and/or supplements to the same,

 

Page 18 

	 	 	 	within thirty (30) days after finalization of the annual budget prepared in the
ordinary course of business and in a manner consistent with the manner in which the
JMC Budgets were prepared prior to the date thereof; and

	 	(d)	 	any other information required to be furnished to shareholders of an
exempted company under the laws of the Cayman Islands.

	5.2.	 	Access to Company Records. The Company shall furnish to each Shareholder having,
when aggregated with the Shareholding Percentages of its Affiliates, a Minimum Shareholding
Percentage with reasonable visitation and inspection rights to any of the properties of the
Company and its Subsidiaries, including the books of account, and the right to discuss the
Company’s and its Subsidiaries’ business affairs, finances and accounts with the Company’s
and its Subsidiaries’ officers or directors, at such times as such Shareholder may reasonably
request.
	 
	5.3	 	Employee Share Option Scheme. The Company shall adopt an employee incentive scheme
pursuant to which the Company may issue Shares or options for Shares constituting up to 5% of
the share capital of the Company as of the date hereof pursuant to a plan approved by the
Board (“Company Employee Share Option Scheme”), provided that such issuance of
Shares or options for Shares shall not result in any one person receiving such Shares
holding an aggregate Shareholding Percentage exceeding 2%.
	 
	5.4	 	Offshore Payments. The Company and MIE shall ensure that all revenues relating to the
Daan Production Sharing Contract is paid in US$ into a bank account established outside of the
PRC (an “Offshore Bank Account”) in the name of MIE, but only to the extent required
by the Standard Bank Facility or to the extent that such remittance to an Offshore Bank
Account is commercially reasonable for the operation of MIE’s business. Subject to the
required approvals being obtained, which approvals the Company and MIE shall use their
commercially reasonable endeavours to obtain as soon as reasonably practicable in accordance
with the Standard Bank Facility, the Company and MIE shall further ensure that all revenues
relating to all other Production Sharing Contracts to which any member of the MIE Group is or
may in the future be a party is paid in US$ into an Offshore Bank Account in the name of the
relevant member of MIE Group, but only to the extent also required by the Standard Bank
Facility or to the extent that such remittance to an Offshore Bank Account is commercially
reasonable for the operation of the relevant member of MIE Group.
	 
	5.5	 	General Covenants. Each of the Company and MIE shall use their commercially
reasonable endeavours to carry out the following matters within six (6) months of the
Completion:

	 	(a)	 	following completion of the amendment to the MIE Business License pursuant to
(a)(i) above, apply to Beijing SAFE to change the description of business scope and
operation term recorded on MIE’s foreign exchange registration certificate to be
consistent with the MIE Business License;
	 
	 	(b)	 	register in the PRC trademarks and other intellectual property rights of MIE;
	 
	 	(c)	 	enter into appropriate employment contracts with all senior employees of MIE

 

Page 19 

	 	 	 	to the standard required to satisfy requirements for a listing on a Recognised
Stock Exchange;

	 	(d)	 	cause the FEEL Shareholders to file the details of the Debt Settlement
Transactions and the related capital change in MIE Group with, and to the extent
practicable or permissible, obtain all necessary registrations related thereto from,
Jilin SAFE; and
	 
	 	(e)	 	adopt and establish internal and management controls of the Company and MIE to
the standard required to satisfy requirements for a Qualified IPO.

	5.6	 	Termination of Rights. The rights granted under Clauses 5.1 and 5.2 shall
expire immediately upon the occurrence of a Qualified IPO or a Trade Sale.
	 
	6.	 	BOARD OF DIRECTORS
	 
	6.1	 	Number of Directors. The number of Directors holding office at any one time shall be
five (5), unless otherwise agreed by all of the Shareholders.
	 
	6.2	 	Board Composition. So long as the Company is not listed on any stock exchange, the
Board shall be comprised of members nominated by the Shareholders whereby the number of
nominated Directors by each Shareholder shall be as nearly as practicable in proportion to
such Shareholder’s Shareholding Percentage (for which purposes a Shareholder may aggregate the
Shareholding Percentages of some or all of its Affiliates provided those Affiliates do not
also exercise their nomination rights) provided that any Director nominated by a
Shareholder shall have acceptable qualifications to serve on the Board, and provided
further that:

	 	(a)	 	so long as TPG and its Affiliates shall have an aggregate Shareholding
Percentage of at least five percent (5%), at least one (1) Director will be nominated
by TPG (the “TPG Director”); and
	 
	 	(b)	 	Four (4) Directors will be nominated by FEEL (the “FEEL Directors”),
so long as FEEL or its Affiliates shall remain a Shareholder;

	 	 	provided, however, that FEEL shall always be entitled to nominate a
majority of the Directors so long as FEEL and its Affiliates holds a majority of the
Shareholding Percentage of the Company.
	 
	6.3	 	Appointment of Directors. In the event of the appointment of a Director nominated in
accordance with Clause 6.2, the Shareholders shall vote their Shares to cause the appointment
to the Board of the Director so designated for appointment by the appropriate Shareholder.
	 
	6.4	 	Removal of Directors. A Director may be removed and replaced at any time by the
Shareholder that has nominated such Director in accordance with the provisions of the
Companies Law. If a Director becomes disqualified under applicable law, his position of
Director shall be vacated and the Shareholder that nominated such Director shall nominate a
new Director in accordance with Clause 6.2 and the Shareholders shall vote their Shares to
cause the election to the Board of any such new Director.

 

Page 20 

	6.5	 	Method of Nomination and Removal. Nominations and removals of Directors shall be
by written memorandum signed by the relevant Shareholder(s) and shall be effective from the
time stated in the memorandum or, if no time is stated, from the time when the memorandum is
lodged at the Company’s registered office.
	 
	6.6	 	Alternate Directors. A Director may at any time appoint another Person (including
another Director) to be his alternate and attend and vote at any meeting of the Board at which
the appointing Director is absent. Any such appointment shall be in writing (by letter or
facsimile) and shall be in effect until terminated by the appointing Director, whether in such
writing or a subsequent writing or until the Director ceases to be a director whichever is
earlier.
	 
	6.7	 	Obligations Toward Directors. The Company shall:

	 	(a)	 	enter into a customary indemnification agreement with each of its Directors
and officers;
	 
	 	(b)	 	obtain directors and officers liability insurance in an amount and on terms
approved by the Board and by TPG; and
	 
	 	(c)	 	reimburse the Directors for all reasonable out-of-pocket expenses, including
travel expenses, incurred by the Directors in connection with attending meetings of
the Board.

	6.8	 	Chairman. The Chairman of the Board (the “Chairman”) shall be one of the
FEEL Directors. The Chairman shall chair all meetings of the Board;
provided, however,
that if the Chairman is absent from any such meeting, one of the other FEEL Directors shall
chair such meeting.
	 
	6.9	 	Frequency of meetings; Notice. Except as otherwise provided in this Agreement, the
Board shall hold a regular meeting at least once each calendar quarter at a location the Board
shall determine. The date, time and location of any such regular meeting shall be established
by the Board and notified to each Director in writing at least fourteen (14) days in advance.
Special meetings of the Board shall be held upon the request of the Chairman or any Director
upon at least five (5) Business Days’ written notice (containing the agenda, date, time and
place of the meeting) to the Directors and shall be held at such time and place designated in
such notice, provided, however, that if any Reserved Matter is to be voted on
in any meeting of the Board, the notice for such meeting shall specify such Reserved Matter
separately from other matters.
	 
	6.10	 	Quorum. The quorum for any meeting of the Board shall be a majority of the
Directors, consisting of at least two (2) FEEL Directors and, if any, the TPG Director, each
Director present personally or by his alternate. If within half an hour of the time appointed
for the meeting no quorum is present, the meeting shall be adjourned to the same day one (1)
week later at the same time and place or to such other day or time as the Chairman may
designate upon at least five (5) days’ written notice to all of the Directors (the
“Adjourned Meeting”). If at the Adjourned Meeting no quorum is present within half
an hour from the time appointed for the meeting, any two (2) Directors present at such meeting
shall constitute a quorum; provided, however, that no action or decision shall be
taken on any matter not specified in the agenda of the meeting when it was first called.

 

Page 21 

	6.11	 	Conference Meetings. Meetings of the Directors held by means of a telephone
conference which enables all persons participating in the meeting to hear each other at the
same time and to communicate with each other shall be valid as if they were attended by all
Directors in person. Such participation by any Director shall constitute presence in person
at the meeting by such Director. All meetings of the Directors shall enable Directors to
participate by means of telephone conference.
	 
	6.12	 	Board Approvals.

	 	(a)	 	Except as otherwise provided in, or delegated in accordance with, this
Agreement or the Restated Articles or required by applicable law, all matters requiring
the approval of the Board shall be subject to the approval of a majority of the
Directors present and voting at a duly convened meeting.
	 
	 	(b)	 	Any Reserved Matter shall, in addition to the approval of the shareholders of
the Company as set forth in Clause 7.4, be subject to the approval of a majority of the
Directors present and voting at a duly convened meeting at which the TPG Director shall
not have voted against such matter, provided, however, that, unless the
TPG Director agrees, no such Reserved Matter may be proposed at any such meeting unless
the notice for such meeting provided pursuant to Clause 6.9 contains reasonably
sufficient details regarding such Reserved Matter; provided further,
that the TPG Director shall not unreasonably vote against any matter falling
under clause (x) of Schedule 1 if the purpose for incurring the additional Indebtedness
is for the development of additional oilfields and other related businesses of the
Company or any Material Subsidiary. In the event that the Board cannot reach a
resolution of any Reserved Matter within thirty (30) days of the calling of the initial
meeting for such matter, the Company and the Shareholders shall reasonably cooperate
and use reasonable best efforts to work towards a mutually agreeable resolution.
	 
	 	(c)	 	Notwithstanding anything in this Agreement to the contrary, all matters
relating to the Qualified IPO will be subject to Board approval pursuant to Clause
6.12(a) and will not be considered a Reserved Matter subject to consent pursuant to
Clause 6.12(b).
	 
	 	(d)	 	Each Director shall have one (1) vote and no Director shall have a casting vote.
	 
	 	(e)	 	The Company shall cause its Subsidiaries not to act with respect to Reserved
Matters except in accordance with Clause 6.12(b).

	6.13	 	Written Resolution. The Board may take action by written resolution signed and
approved by all of the Directors in lieu of holding a meeting. Such written resolution may be
signed in counterparts.
	 
	6.14	 	Board Information. The Board shall distribute (a) the minutes of any meetings of the
Joint Management Committee under each of the Production Sharing Contracts to each of the
Directors and (b) the technical reports received by the Company from time to time, including
but not limited to, reserves updates.

 

Page 22 

	6.15	 	Business Opportunity. TPG shall have the right to, and shall have no duty not
to, engage in the same or similar business activities or lines of business as the Company
or MIE, including those deemed to be competing with the Company or MIE, and in the event
that TPG (or any of its Affiliates or appointed Directors) acquires knowledge of a
potential transaction or matter that may be a corporate opportunity for the Company, TPG
(and its Affiliates and appointed Directors) shall have no duty (contractual or otherwise)
to communicate or present such corporate opportunity to the Company and shall not be liable
for breach of any duty (contractual or otherwise) by reason of the fact that TPG (or any of
its Affiliates) directly or indirectly pursues or acquires such opportunity for itself,
directs such opportunity to another Person, or does not present such opportunity to the
Company. Notwithstanding the foregoing, to the extent that TPG acquires knowledge of a
potential transaction or matter that is likely to be a corporate opportunity for the
Company solely as a result of an employee or agent of TPG (or any of its Affiliates)
attending board meetings of the Company in his or her capacity as a director of the
Company, then TPG will not pursue such opportunity for itself, or direct such opportunity
to another Person, unless the Company has declined to pursue such opportunity or fails to
actively pursue such opportunity within fifteen (15) days after it is notified by TPG about
its interest in the opportunity.
	 
	7.	 	MEETINGS OF SHAREHOLDERS
	 
	7.1	 	General Meeting. A General Meeting of the shareholders of the Company (the
“Annual General Meeting”) shall be held once in every calendar year and not later than
fifteen (15) months after the holding of the last preceding Annual General Meeting.
	 
	7.2	 	Extraordinary Meetings. Extraordinary meetings of the shareholders of the Company
shall be held upon the request of the Chairman, the TPG Director or any two Directors (or as
otherwise required pursuant to the provisions of the Companies Law) upon at least fourteen
(14) days written notice (containing the agenda, date, time and place of the meeting) to all
shareholders of the Company and shall be held at such time and place designated in such
notice, with attendance in person or by telephone or by proxy or corporate representative;
provided, however, that, subject to applicable law, such fourteen (14) day notice
requirement may be waived by shareholders of the Company having an aggregate Voting Percentage
of not less than ninety percent (90%) in a particular case. Any notice period referred to
above shall exclude both the day on which the notice is served or deemed to be served and the
day for which the notice is given.
	 
	7.3	 	Quorum. The quorum for any meeting of the shareholders of the Company shall be
shareholders of the Company whose aggregate Voting Percentage is not less than sixty-six and
two-thirds percent (662/3%) present personally or by duly appointed proxy, attorney
or representative, provided, however, that for the Shareholders Meeting to be validly
convened, TPG shall be present or represented. If within half an hour of the time appointed
for the meeting no quorum is present, the meeting shall be adjourned to the same day one (1)
week later at the same time and place or to such other day or time as the Chairman may
designate upon at least five (5) days’ written notice to all of the shareholders of the
Company. If at the adjourned meeting no quorum is present within half an hour from the time
appointed for the meeting, shareholders of the Company whose Voting Percentage is not less
than sixty-six and

 

Page 23

	 	 	two-thirds percent (662/3%) present or represented at such meeting shall
constitute a quorum; provided, however, that no action or decision shall be taken
on any matter not specified in the agenda of the meeting when it was first called.
	 
	7.4	 	Shareholder Approval.

	 	(a)	 	Except as required by applicable law, any action by the shareholders of the
Company at any General Meeting or extraordinary meeting shall require the approval of
shareholders of the Company having an aggregate Voting Percentage of more than fifty
percent (50%) present and voting at a validly held meeting, and all special
resolutions by the shareholders of the Company shall require the approval of
shareholders of the Company having an aggregate Voting Percentage of more than
sixty-six and two-thirds percent (662/3%) present and voting at a validly
held meeting; provided, however, that a special resolution for the
approval of any Reserved Matter at a duly convened meeting shall also require that any
Shares held and represented at the requisite meeting by TPG be voted in favor of such
matter or abstained, for so long as there is a TPG Director.
	 
	 	(b)	 	In the event that a resolution of the shareholders at a meeting is required
pursuant to applicable law in respect of any Reserved Matter, no resolution shall be
put forth at any meeting of the shareholders and no written resolution of shareholders
shall be passed in respect thereof unless such matter has been approved by the Board
in accordance with Clause 6.12(b).

	7.5	 	Written Resolution. Except as otherwise required by applicable law, a resolution in
writing (circulated to all the shareholders of the Company) approved and signed by all the
shareholders of the Company shall be valid and effectual as if it had been a resolution passed
at a meeting of the shareholders of the Company duly convened and held.
	 
	7.6	 	Chairman. The Chairman of the Board for the time being shall also preside as
chairman at any General Meeting. If the Chairman of the Board is absent at any General
Meeting, a Director shall act as the chairman.
	 
	8.	 	ANNOUNCEMENTS AND CONFIDENTIALITY
	 
	8.1	 	Announcements. No announcement, press release or circular in connection with the
existence or the subject matter of this Agreement shall be made or issued by or on behalf of
any Party without prior consultation with the other Parties. This shall not affect any
announcement, press release or circular required by law or any regulatory body or the rules of
any stock exchange but the Party with an obligation to make an announcement or issue a press
release or circular shall consult with the other Parties insofar as is reasonably practicable
before complying with such an obligation.
	 
	8.2	 	Confidentiality. Subject to Clause 8.3, each Party shall treat as confidential and
not disclose or use any information received or obtained as a result of entering into this
Agreement (or any agreement entered into pursuant to this Agreement) which relates to the
provisions of this Agreement and any agreement entered into pursuant to this

 

Page 24

	 	 	Agreement or the existence and negotiations relating to this Agreement (and such other
agreements).
	 
	8.3	 	Exceptions to Confidentiality. Clause 8.2 shall not prohibit disclosure or
use of any information if and to the extent that:

	 	(a)	 	the disclosure or use is required by law, any regulatory body or the rules
and/or regulations of any stock exchange;
	 
	 	(b)	 	the disclosure or use is required for the purpose of any judicial or regulatory
proceedings arising out of this Agreement or any other agreement entered into under or
pursuant to this Agreement or the disclosure is reasonably required to be made to a
taxation authority in connection with the taxation affairs of the disclosing Party;
	 
	 	(c)	 	the disclosure is made to (i) the Company’s Directors, officers, employees,
legal counsel, advisors and existing lenders, (ii) any of the Shareholders and any of
the Shareholders’ respective shareholders, partners, directors, legal counsel and
advisors, or (iii) a bona fide prospective purchaser of Shares, on terms that such
Persons undertake to comply with the provisions of Clause 8.2 in respect of such
information as if they were a party to this Agreement;
	 
	 	(d)	 	the information becomes publicly available (other than by breach of this
Agreement);
	 
	 	(e)	 	the other Parties have given prior written approval to the disclosure or use; or
	 
	 	(f)	 	the disclosure is made to MIE’s lenders under the Standard Bank Facility.

	9.	 	NOTICES
	 
	 	 	All notices, consents, and other communications under or pursuant to this Agreement
(“Notices”) shall be in writing and in the English language and shall be delivered
(A) by hand, (B) by facsimile (with receipt confirmed); provided, however, that a
copy is promptly thereafter mailed by reputable private courier, return receipt requested,
(C) by the addressee or (D) by such other means as the Parties may agree from time to time;
in each case to the appropriate addresses and facsimile numbers set forth below (or to such
other addresses or facsimile numbers as a Party may designate as to itself by not less than
five (5) Business Days notice to the other Parties):

	 	 	 
	if to TPG, to	:	TPG Star Energy Ltd.
	 

	 	301 Commerce Street, Suite 3300
	 

	 	Fort Worth, Texas 76102
	 

	 	Fax: (817) 871-4001
	 

	 	Attention: Mr. Clive D. Bode
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	TPG Growth Capital (Asia) Limited
	 

	 	57th Floor, Two International Finance Centre

 

Page 25

	 	 	 
	 	 	8 Finance Street, Central, Hong Kong
	 

	 	Fax: (852) 3515-8999
	 

	 	Attention: Mr. Stephen Law
	 

	 	and
	 
	 	 
	 

	 	Cleary Gottlieb Steen & Hamilton LLP
	 

	 	Bank of China Tower
	 

	 	One Garden Road, Hong Kong
	 

	 	Fax: (852) 2160-1008
	 

	 	Attention: Mr. Sang Jin Han
	 
	 	 
	if to Standard Bank, to	:	Standard Bank Plc
	 

	 	Cannon Bridge House
	 

	 	25 Dowgate Hill
	 

	 	London EC 4R 2SB
	 

	 	Fax: +852 2822 7999
	 

	 	Attention: Head of Loans Administration
	 
	 	 
	if to FEEL, to	:	Far East Energy Limited
	 

	 	Suite 406, Block C Grand Place
	 

	 	5 Hui Zhong Road
	 

	 	Chaoyang District, Beijing 100101
	 

	 	PRC
	 

	 	Facsimile: (8610) 5123 8866
	 

	 	Attention: Mr. Zhang Ruilin
	 
	 	 
	if to MIE, to	:	MI Energy Corporation
	 

	 	Suite 406, Block C Grand Place
	 

	 	5 Hui Zhong Road
	 

	 	Chaoyang District, Beijing 100101
	 

	 	PRC
	 

	 	Facsimile: (8610) 5123 8866
	 

	 	Attention: Mr. Forrest Dietrich
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	White & Case LLP
	 

	 	19th Floor, Tower 1 of China Central Place
	 

	 	81# Jianguo Lu, Chaoyang District, Beijing
	 

	 	100025, China
	 

	 	Facsimile: (8610) 5969 5760
	 

	 	Attention: Mr. Li Xiaoming / Ms. Vivian Tsoi
	 
	 	 
	if to the Company, to	:	MIE Holdings Corporation
	 

	 	Suite 406, Block C Grand Place
	 

	 	5 Hui Zhong Road
	 

	 	Chaoyang District, Beijing 100101
	 

	 	PRC

 

Page 26

	 	 	 
	 

	 	Facsimile: (8610) 5123 8866
	 

	 	Attention: Mr. Zhang Ruilin
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	White & Case LLP
	 

	 	19th Floor, Tower 1 of China Central Place
	 

	 	81# Jianguo Lu, Chaoyang District, Beijing
	 

	 	100025, China
	 

	 	Facsimile: (8610) 5969 5760
	 

	 	Attention: Mr. Li Xiaoming / Ms. Vivian Tsoi

	10.	 	GOVERNING LAW AND PRIORITY
	 
	10.1	 	Governing Law and Jurisdiction. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York without regard to conflicts of laws
principles.
	 
	10.2	 	Priority. The Parties hereby agree that in the event of any conflict, discrepancy
or inconsistency between the Restated Articles and this Agreement, the terms hereof shall
prevail for all purposes of this Agreement. In the event of any such conflict, discrepancy
or inconsistency, the Parties agree, to the extent permitted by applicable law, to amend the
Restated Articles to reflect the terms of this Agreement. Nothing contained in this
Agreement shall be deemed to constitute an amendment of the Restated Articles.
	 
	11.	 	TERMINATION OF AGREEMENT
	 
	11.1	 	Termination. This Agreement shall terminate:

	 	(i)	 	upon the written agreement of the Parties;
	 
	 	(ii)	 	upon the liquidation of the Company;
	 
	 	(iii)	 	upon the consummation of a Qualified IPO;
	 
	 	(iv)	 	upon a Trade Sale; or
	 
	 	(v)	 	with respect to any Shareholder, if such Shareholder and its Affiliates
no longer own any Shares;

	 	 	provided, however, that Clauses
8, 10, 11 and 12 shall survive any termination
hereof.
	 
	11.2	 	Effect of Termination. Upon termination of this Agreement as provided in Clause
11.1, the rights and privileges granted to and the obligations imposed upon each of the
Shareholders in this Agreement shall immediately terminate; provided, however,
except as otherwise agreed by the relevant Parties, no termination of this Agreement shall
release any Party from any liability to any other Party which at the time of such termination
has already accrued, nor affect in any way the survival of any right, duty or obligation of
any Party which is expressly stated elsewhere in this Agreement to survive the termination
hereof.

 

Page 27

	12.	 	ARBITRATION
	 
	12.1	 	Amicable Settlement. Any and all disputes, controversies and conflicts between the
Parties arising out of or relating to or in connection with this Agreement and the performance
or non-performance of the obligations set forth herein shall, so far as is possible, be
settled amicably between the Parties within thirty (30) days after written notice of such
dispute, controversy or conflict has been given by one Party to the other Parties.
	 
	12.2	 	Arbitration Procedure.

	 	(a)	 	Failing an amicable settlement thereof within the 30-day period specified in
Clause 12.1, any and all disputes, controversies and conflicts arising out of or in
connection with this Agreement or its performance (including the validity of this
Agreement) shall be settled by three (3) arbitrators under the UNCITRAL Arbitration
Rules (the “UNCITRAL Rules”) in accordance with the Hong Kong International
Arbitration Center (“HKIAC”) Procedures for the Administration of International
Arbitration in force at the date of this Agreement. The place of arbitration shall be
Hong Kong and the language used in the arbitral proceedings shall be English. The HKIAC
shall act as the administering institute.
	 
	 	(b)	 	The arbitrators shall be appointed by mutual consent of the Parties involved in
the arbitration in accordance with the procedures set out in the UNCITRAL Rules
regarding the appointment of arbitrators, failing which the appointing authority shall
be HKIAC.
	 
	 	(c)	 	The arbitral proceedings shall accord to each of the Parties the right to
provide witnesses, including expert witnesses, the right of cross-examination of
witnesses and the right to make both written and oral submissions.
	 
	 	(d)	 	The arbitral award made and granted by the arbitrator shall be final, binding
and incontestable and may be used as a basis for judgment thereon in Hong Kong or
elsewhere. All costs of arbitration (including, without limitation, those incurred in
the appointment of the arbitrator) shall be apportioned in the arbitral award.

	12.3	 	Court Action. By agreeing to arbitration, the Parties do not intend to deprive any
court of competent jurisdiction of its ability to issue any form of provisional remedy,
including but not limited to a preliminary remedy in aid of arbitration, or order any interim
injunction and a request for such provisional remedy or interim injunction by the Parties to a
court shall not be deemed a waiver of this agreement to submit to arbitration.
	 
	12.4	 	Continued Performance During Arbitration. During the period of submission to
arbitration and thereafter until the granting of the arbitral award, the Parties shall, except
in the event of termination, continue to perform all their obligations under this Agreement
without prejudice to a final adjustment in accordance with the said award.
	 
	12.5	 	Survival. The provisions contained in this Clause 12 shall survive the termination
or expiration of this Agreement.

 

Page 28

	13.	 	CERTAIN ADDITIONAL COVENANTS OF THE PARTIES
	 
	13.1	 	Initial Public Offering. Each of the Parties shall use commercially reasonable
efforts to facilitate a Qualified IPO within twenty-four (24) months of the Completion Date.
The Company shall use its commercially reasonable endeavours (including providing all
information necessary and appropriate) to obtain, if such Qualified IPO is on the Hong Kong
Stock Exchange and if feasible, private rulings from the Hong Kong Stock Exchange that:

	 	(a)	 	MIE’s current Production Sharing Contracts will be sufficient to demonstrate
the right to use the land constituting the oilfields without PetroChina’s land use
rights certificates for listing of the shares of the Company on the Hong Kong Stock
Exchange; and
	 
	 	(b)	 	FEEL’s current shareholding arrangements will be sufficient to comply with the
continuity of ownership requirements for listing of the shares of the Company on the
Hong Kong Stock Exchange.

	13.2	 	Market Stand-Off Agreement. Each Shareholder shall agree to customary market
stand-off or lock-up restrictions upon a Qualified IPO as may be required by applicable rules,
laws or regulations.
	 
	13.3	 	FEEL Shareholding. At any time from and after Completion, FEEL and its Affiliates
shall maintain a Shareholding Percentage of more than fifty percent (50%) until the date
falling on the earlier of (a) the expiration date of the lock-up period applicable to TPG
following the Qualified IPO, (b) the date upon which TPG’s shareholding in the Company falls
below the Minimum Shareholding Percentage and (c) the date falling sixty (60) months from the
Completion date (such earlier date, the “Required Shareholding Ownership Expiration
Date”). During the period from the Completion Date until Required Shareholding Ownership
Expiration Date, the Shares held by FEEL and its Affiliates will be free and clear of any and
all Encumbrances, other than any share charge as contemplated by the SPA, the Standard Bank
Facility or the Standard Bank Equity Agreements.
	 
	13.4	 	MIE Shareholding. At any time from and after Completion, FEEL shall cause the
Company to, and the Company shall, legally and beneficially own all the issued and outstanding
shares of MIE until the date falling on the Required Shareholding Ownership Expiration Date.
During the period from the Completion Date until the Required Shareholding Ownership
Expiration Date, all the issued and outstanding shares of MIE will be free and clear of any
and all Encumbrances, other than any share charge as contemplated by the Standard Bank
Facility.
	 
	13.5	 	Consultation Rights. At least five (5) Business Days prior to the making of any
decisions in relation to (a) the appointment or removal of any directors of any member of the
MIE Group or increase of the remuneration of any of the same or (b) the recruitment, election,
dismissal or change of the remuneration or conditions of any of the following employees of any
member of the MIE Group: Zhang Ruilin, Zhao Jiangwei, the chief executive officer, the chief
financial officer, the chief operating officer, the president, any senior vice presidents or
any other persons serving similar positions as listed herein, the Company shall consult with
TPG prior to making such decision.

 

Page 29

	13.6	 	Compliance with Laws. The Company shall comply with all applicable laws that
are or may be applicable to the Company’s business (including laws with respect to the
environment, occupational health and safety, international sanctions and business
practices). The Company shall implement international best practices for governance and
internal controls. The Company shall not conduct or enter into a contract to conduct any
transaction with the governments or any of sub-division thereof, agents or representatives,
residents of, or any entity based or resident in the countries that are currently subject to
any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury
Department (“OFAC”); and neither the Company nor MIE has financed the activities of any
Person currently subject to any U.S. sanctions administered by OFAC.
	 
	13.7	 	Further Assurances. The Shareholders shall promptly and duly execute and deliver
such documents and take, and cause the Company to take, such further action as may be required
or reasonably desirable in order to carry out effectively and accomplish the intent and
purpose of this Agreement and to establish and protect the rights and remedies created or
intended to be created under this Agreement.
	 
	13.8	 	Nominees. Each Shareholder shall procure that each of its nominees, including
Directors nominated by it, shall perform its duties in accordance with the terms and
provisions of this Agreement to the fullest extent permitted by applicable law.
	 
	13.9	 	Consents and Approvals for Share Transfers. If the Transfer of any Shares by any
Shareholder in accordance with this Agreement requires any consent, authorization, approval
and permit from, or the making of any filing or notice to, any other Person or governmental,
quasi-governmental and regulatory body, agency and authority necessary and appropriate
to permit such Transfer under applicable law, the Shareholders shall use reasonable best
efforts to cause the Company and its Subsidiaries to procure and receive prior to
such Transfer, such consent, authorization, approval or permit or makes such filing or
notice.
	 
	14.	 	MISCELLANEOUS
	 
	14.1	 	Transfers, Successors and Assigns. The terms and conditions of this Agreement shall
inure to the benefit of and be binding upon the respective successors and permitted assigns of
the Parties (provided that as long as TPG shall be a shareholder, TPG shall have the
right to assign its rights under Clause 5 and Clause 6 to TPG Star, L.P.). Nothing in this
Agreement, express or implied, is intended to confer upon any Party other than the Parties or
their respective successors and permitted assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided in this
Agreement.
	 
	14.2	 	Ownership. Each Shareholder represents and warrants that such Shareholder is the
sole legal and beneficial owner of the Shares subject to this Agreement and that no other
Person has any interest in such Shares (other than a community property interest as to which
the holder thereof has acknowledged and agreed in writing to the restrictions and obligations
hereunder).
	 
	14.3	 	Further Assurances. Each Party undertakes to and with each other Party to do all
things reasonably within its power which are necessary or reasonably desirable to give full
effect to the spirit and intent of this Agreement.

 

Page 30

	14.4	 	Amendments and Waivers. All amendments and other modifications hereof or
waivers of the observance of any term hereof (either generally or in a particular instance
and either retroactively or prospectively) shall be in writing and signed by each of the
Parties.
	 
	14.5	 	No Joint Venture or Partnership. Nothing in this Agreement shall constitute or be
deemed to constitute a joint venture or a partnership between any of the Parties and none of
them shall have any authority to bind the others in any way.
	 
	14.6	 	No Waiver. The failure of a Shareholder at any time to require observance or
performance by any other Shareholder of any of the provisions of this Agreement shall in no
way affect the Shareholder’s right to require such observance or performance at any time
thereafter, nor shall the waiver by any Shareholder of a breach of any provision hereof be
taken or held to be a waiver of any succeeding breach of such provision. The rights and
remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies
otherwise provided by law.
	 
	14.7	 	Severability. In case any one or more of the provisions contained in this Agreement
shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and
enforceability of all remaining provisions contained herein shall not in any way be affected
or impaired thereby; and the invalid, illegal or unenforceable provisions shall be interpreted
and applied so as to produce as near as may be the legal, economic and commercial result
intended by the Parties.
	 
	14.8	 	Counterparts. This Agreement may be signed in any number of counterparts, each of
which is an original and all of which, taken together, constitutes one and the same
instrument. This Agreement may also be executed and delivered by facsimile signature and in
any number of counterparts, each of which shall be deemed an original and all of which, taken
together, constitutes one and the same instrument.
	 
	14.9	 	Effecting the Intentions of the Parties under this Agreement. Each Shareholder agrees
to exercise its voting rights in the Company to effect the intentions, agreements and purposes
specified herein. Each Shareholder agrees that if as a result of any applicable law the
intentions of the Parties expressed in this Agreement shall not be effected, it will take all
reasonable steps necessary to give effect to such intentions.
	 
	14.10	 	Entire Agreement. The Transaction Agreements contain the entire understanding and
agreement between the Parties with respect to the subject matter hereof and supersede and
cancel all prior oral and written agreements or representations, if any, among the Parties or
any of them relating to the subject matter thereof.
	 
	14.11	 	Share Splits. Share Dividends, etc. In the event of any issuance of the Company’s
voting securities hereafter to any of the Shareholders (including, without limitation, in
connection with any share split, share dividend, recapitalization, reorganization, or the
like), such securities shall become subject to this Agreement and shall be endorsed with the
legend set forth in Clause 2.4.
	 
	14.12	 	Costs and Attorneys’ Fees. Each Party shall pay its own expenses in connection with
the transactions contemplated by this Agreement.

 

Page 31

	14.13	 	No Liability for Election of Directors. Neither the Company or any of the
Shareholders, nor any officer, director, shareholder, partner, employee or agent of any such
Party, makes any representation or warranty as to the fitness or competence of the member of
the Board designated by any Party hereunder to serve on the Board by virtue of such Party’s
execution of this Agreement or by the act of such Party in voting for such designee pursuant
to this Agreement.
	 
	14.14	 	Obligations of Investors Several. The obligations of the Investors under this
Agreement are several and no Investor shall be liable for the default of another Investor.

[Signature Page Follows]

 

Page 32

IN WITNESS WHEREOF the Parties have duly executed this Agreement as of the date and year written
above.

	 	 	 	 	 
	MIE HOLDINGS CORPORATION

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	MIE ENERGY CORPORATION

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	TPG STAR ENERGY LTD.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	STANDARD BANK PLC

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 
	FAR EAST ENERGY LIMITED

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

 

Page 33

	 	 	 	 	 

SCHEDULE 1

MATTERS REQUIRING SPECIAL APPROVAL OF THE BOARD

	(i)	 	Any Trade Sale, merger, consolidation, reorganization or acquisition, or any other
transaction that would constitute a change of control, of the Company or any Material
Subsidiary;
	 
	(ii)	 	Any sale of all or substantially all of the business of the Company or any Material
Subsidiary;
	 
	(iii)	 	Any material change in the scope of business of the Company or MIE;
	 
	(iv)	 	The creation, grant or issuance of any New Securities by the Company or of any shares or
rights to subscribe for, or options, warrants or other securities convertible into or
exercisable or exchangeable for, equity securities of any member of the MIE Group (other than
any creation, grant or issuance of a new series of preferred shares of the Company (the
“New Preferred Shares”); provided that, (a) the New Preferred Shares shall only be
issued to a third party investor (other than FEEL or any of its Affiliate) which is a leading
reputable international institutional investor, (b) the aggregate principal amount, face
amount or liquidation preference amount of the New Preferred Shares shall not exceed
US$20,000,000 at any time outstanding, (c) the per share subscription price of the New
Preferred Shares shall be equal to or higher than the Per Share Subscription Price (as defined
in the SPA), and (d) the terms and conditions of, or rights relating to, the New Preferred
Shares (whether pursuant to the Restated Articles, contractual or otherwise) are not more
favorable than those applicable to the Series A Preferred Shares taking into consideration the
percentage of shareholding represented by the New Preferred Shares.
	 
	(v)	 	Any redemption or repurchase by the Company of any equity securities of the Company, other
than a redemption of the Put Shares or a redemption of any Shares held by Standard Bank
pursuant to the put option granted to Standard Bank under the Standard Bank Equity
Agreements;
	 
	(vi)	 	Change in any rights attaching to any securities issued by the Company or granting of any
right to the holders of any securities issued by the Company if (a) the holder(s) of such
rights is FEEL or any of its Affiliates (other than as may be required to consummate the
transactions under the Standard Bank Equity Agreements) or (b) such rights are superior to the
rights of the holders of the Series A Preferred Shares;
	 
	(vii)	 	Any declaration, setting aside or payment of any dividend or other distribution in respect
of the Shares, except for the deemed dividend distribution referred to in Clause 5.1(a)(xiv)
of the SPA and any additional deemed dividend distribution (which shall not involve any cash
distribution) in connection with any additional equity investment by one or more third
parties in the Company in an aggregate amount not to exceed US$12,000,000 for the sole
purpose of forgiving or writing off the MIE Loan (as defined in the SPA);
	 
	(viii)	 	Any repayment by MIE of any loan from a direct or indirect Shareholder;

 

Page 34

	(ix)	 	Incurrence of annual expenses by the MIE Group for an individual item or directly
related group of items, or any transaction, which is both outside the scope of the then
current annual budget as approved by the Joint Management Committee under the Company’s
existing production sharing contracts with China National Petroleum Corporation (the
“JMC Budget”) and which annual expenses, in the aggregate, exceeds the greater of
US$10,000,000 and 10% of the then current JMC Budget;
	 
	(x)	 	Incurring any additional Indebtedness (other than any Indebtedness incurred under the
Standard Bank Facility) exceeding in the aggregate US$20,000,000 during the 12-month period
following the Completion and US$40,000,000 during the 24-month period following the
Completion;
	 
	(xi)	 	Entry by any member of the MIE Group into any transaction with any Person involving the
making of payments by or obligations or liabilities of any member of the MIE Group outside
the ordinary course of business in excess of US$15,000,000;
	 
	(xii)	 	Entry by any member of the MIE Group into any transaction with any Affiliate or any
Shareholder, director, officer or shareholder of the Company or Affiliate of any Shareholder,
director, officer or shareholder of the Company outside the ordinary course of business,
including but not limited to the waiver or release of any rights of such member of the MIE
Group and the write-off or forgiveness of any Indebtedness owed to such member of the MIE
Group (other than (a) the write-off or forgiveness of the MIE Loan as contemplated by the SPA
or under paragraph (vii) above, (b) any Pre-Approved Affiliate Transaction, and (c) any
transactions between the Company and MIE to transfer to MIE the proceeds from the sale of
2,145,749 Series A Preferred Shares to TPG);
	 
	(xiii)	 	Amendment of the Article of Association, Bylaws or other governing documents of any member
of the MIE Group to the extent such amendment would adversely affect the rights already
granted to the holders of Series A Preferred Shares;
	 
	(xiv)	 	Any liquidation, winding up, dissolution, receivership, bankruptcy or any like scheme or
arrangement of the Company or any Material Subsidiary;
	 
	(xv)	 	Any appointment or removal of the auditors of the Company or any Material Subsidiary;
	 
	(xvi)	 	Any material change to the accounting or tax policies of the Company or any Material
Subsidiary, other than any material change implemented to be in compliance with any relevant
laws, rules and regulations applicable to the Company;
	 
	(xvii)	 	The creation of any Encumbrance over any material asset or group of assets of, or over
substantially all the undertaking of, any member of the MIE Group (save for Encumbrances that
(i) arise by operation of law, (ii) which any member of the MIE Group is obliged to create
under the terms of the Standard Bank Facility), or the giving by any member of the MIE Group
of any guarantee or indemnity in respect of the obligation of any person (other than any
guarantee or indemnity given by a member of the MIE Group in respect of the obligations of the
Company or of a wholly-owned subsidiary of the Company or any guarantee or indemnity given by
a member of the MIE Group under the terms of the Standard Bank Equity Agreements);

 

Page 35

	(xviii)	 	(i) Acquisition of the whole or any significant part of any business or undertaking
or any shares in the capital, of a company, or formation of any subsidiary company or
subsidiary undertaking, (ii) entering into any joint venture or partnership with any person,
or (iii) engagement in any kind of overseas expansion, in each case, exceeding US$20,000,000
in total expenditure or purchase price, as the case may be;
	 
	(xix)	 	Any settlement of any material litigation, arbitration or administrative proceeding
involving any member of the MIE Group in excess of US$3,000,000; and
	 
	(xx)	 	The delegation of any authority of the Board, or the agreement with any Person,
conditionally or otherwise, to do any of the foregoing.

 

EXHIBIT D

FEEL SHAREHOLDERS UNDERTAKINGS

Zhang Ruilin, Zhao Jiangwei and Shang Zhiguo

Suite 406, Block C, Grand Place, 5 Hui Zhong Road, Chaoyang District, Beijing 10010, PRC 

Attention: Mr. Zhang Ruilin Facsimile: (8610) 5123 8866

                    , 2009

Standard Bank PLC.

Cannon Bridge House

25 Dowgate Hill

London EC 4R 2SB

Fax: (852) 2822 7947

Attention: John Wixley

	Re: 	 	 Amendment to Shares Purchase Agreement relating to the Purchase of 197,049 Ordinary
Shares of MIE Holdings Corporation — FEEL Shareholders Undertakings

Dear Sirs:

We provide this letter to Standard Bank PLC. (“Standard Bank”) pursuant to the Amendment to Shares
Purchase Agreement relating to the Purchase of 197,049 Ordinary Shares of MIE Holdings Corporation
(the “Amendment”) dated
               , 2009 among Standard Bank, Far East Energy Limited, MIE Holdings
Corporation, MI Energy Corporation, Zhang Ruilin, Zhao Jiangwen and Shang Zhiguo. Save as defined
in this letter, words and expressions defined in the Amendment shall have the same meanings when
used in this letter.

In connection with the Amendment and the transactions contemplated therein, we hereby represent,
warrant and undertake as follows:

	1.	 	WARRANTITES

	 	1.1	 	Warranties by the FEEL Shareholders. Each FEEL Shareholder
warrants to Standard Bank that:
	 
	 	(a)	 	the FEEL Shareholders are the joint legal owners, free and clear of any
Encumbrances, of all of the issued and outstanding FEEL shares and there are no other
shares or rights to acquire new shares in FEEL and that no person other than a FEEL
Shareholder will have any beneficial interest in any shares in FEEL;
	 
	 	(b)	 	he is not a party to any contract creating rights in respect of any FEEL shares
in any third Person or relating to the voting of FEEL shares or which would otherwise
restrict his ownership of the FEEL shares;
	 
	 	(c)	 	he has the full power and authority and full legal capacity to execute, deliver
and perform his obligations under the Amendment and such Amendment will be or

1

 

	 	 	 	have been duly executed and delivered and constitute or will constitute a valid and
binding obligation of such FEEL Shareholder enforceable in accordance with its terms,
except that such enforcement may be subject to or limited by bankruptcy, insolvency,
moratorium or other laws affecting creditors’ rights generally and subject to the
application of general principles of equity;
	 
	 	(d)	 	the execution, delivery and performance of the Amendment will not result in a breach or
violation of any of the terms and provisions of, or constitute a default under (i) any
Governmental Rule or order applicable to him of any Governmental Authority or any court,
domestic or foreign, having jurisdiction over him or any of his properties or (ii) any
agreement or instrument to which he is a party or by which he is bound or to which any of his
properties is subject, other than, in each case, where such breach, violation or default has
not had, and is not reasonably likely to have, a material adverse effect on his ability to
perform his obligations under the Amendment;
	 
	 	(e)	 	except for the relevant approval of and registration with the PRC State
Administration of Foreign Exchange under Circular 75 he is not and will not be required to
give any notice or to make any filing with or obtain any Permit, consent, waiver or other
authorization from any governmental or regulatory authority or other Person in connection
with the execution, delivery and performance of the Amendment;
	 
	 	(f)	 	there is no legal, administrative, arbitration or other action or proceeding or governmental
investigation pending, or, to his knowledge, threatened, against him that challenges the
validity or performance of the Amendment, or which, if successful, could hinder or prevent
him from performing his obligations hereunder;
	 
	 	(g)	 	he has no contract, arrangement or understanding with any broker, finder or similar agent
with respect to the transactions contemplated by this letter or the Amendment; and
	 
	 	(h)	 	in relation to each of the Repayment Agreements dated September 18, 2007, the Intercompany
Loan Agreement dated June 26, 2008, the Tripartite Agreement dated December 31, 2008, and the
Guarantee dated January 12, 2009 (collectively, the “Intercompany Agreements”) to which he is
a party, (i) he has the full power and authority and full legal capacity to execute, deliver
and perform such Intercompany Agreement, (ii) such Intercompany Agreement is a valid and
binding agreement of him, enforceable against such party in accordance with its terms, and
(iii) the execution and delivery of it by him do not, and the performance of the obligations
thereunder by him will not, (x) conflict with any of, or require any other Consent of any
Person under any Governmental Rule or applicable law, or (y) violate any Governmental Rule or
any provision of applicable law, or require any Permit of any Governmental Authority having
jurisdiction over him.

2

 

	 	1.2	 	Each FEEL Shareholder hereby acknowledges that each statement in Clause 1.1 above is
true and correct as of the date of the Amendment and as of the Effective Date, and Standard
Bank has relied upon such warranties to enter into the Amendment. Each of the warranties
shall be separate and independent and save as expressly otherwise provided shall not be
limited by reference to any provision in this letter or the Amendment.
	 
	 	1.3	 	During the period from the date of the Amendment until the the Effective Date, each FEEL
Shareholder shall notify Standard Bank in writing immediately if it becomes aware of a fact or
circumstance which would cause any warranty given herein or the undertaking set forth in
Clause 2.1 herein to be unfulfilled, untrue, inaccurate or misleading in any material respect
if given in respect of the facts or circumstances as at any time on or prior to the
Completion. Such Updating to Completion shall not affect any of the conditions precedent to
Standard Bank’s obligations or satisfaction thereof under the Amendment.
	 
	 	1.4	 	The warranties set out in Clause 1.1 (a) through (g) shall survive indefinitely. The
warranties set out in Clause 1.1 (h) shall survive until the General Warranty Expiration Date
(as defined in the Original Agreement).

	2.	 	UNDERTAKINGS

	 	2.1	 	Pre-completion undertakings. During the period from the date of the Amendment until
the Effective Date, none of the FEEL Shareholders shall transfer (or create or permit any
Encumbrance over) any interest in any of the shares in FEEL, (except for the creation of
Encumbrances over the shares in FEEL pursuant to the terms of the Standard Bank Facility), or
allow the creation, grant or issuance of new shares by FEEL or of any shares or rights to
subscribe for, or option warrants or other securities convertible into or exercisable or
exchangeable for the shares in FEEL.
	 
	 	2.2	 	Post-Effective Date Undertaking.
	 
	 	 	 	From and after the Effective Date, the FEEL Shareholders shall maintain a shareholding
percentage in FEEL of more than 50% until the date falling on the earliest of (a) the
expiration date of the lock-up period applicable to Standard Bank following the Qualified
IPO (as defined in the Original Agreement), (b) the date upon which Standard Bank’s
shareholding in the Company falls below the 1.5% and (c) the date falling sixty (60) months
from the Effective Date (such earlier date, the
“Required Shareholding Ownership Expiration Date”). During the period from the Effective Date until the Required
Shareholding Ownership Expiration Date, the shares held by the FEEL Shareholders in FEEL
will be free and clear of any and all Encumbrances, other than any Encumbrance as
contemplated by the Standard Bank Facility. For the purposes of this Clause 2.2,
“shareholding percentage” means, with respect to the FEEL Shareholders, the ratio
(expressed as a percentage) of the number of shares in FEEL held by the FEEL Shareholders
to the aggregate number of all the issued shares of FEEL.
	 
	 	2.3	 	Further Assurances. Each FEEL Shareholder shall promptly and duly execute and
deliver such documents and take, and cause any relevant Person to take, such further

3

 

	 	 	 	action as may be required or reasonably desirable in order to carry out effectively and
accomplish the intent and purpose of this letter and the Amendment and to establish and
protect the rights and remedies created or intended to be created under this letter.

	3.	 	NOTICES

	 	 	 	All notices, consents, and other communications under or pursuant to this letter
(“Notices”) shall be in writing and in the English language and shall be delivered
(A) by hand, (B) by facsimile (with receipt confirmed); provided, however, that a copy is
promptly thereafter mailed by reputable private courier, return receipt requested, (C) by
the addressee or (D) by such other means as the parties may agree from time to time; in each
case to the appropriate addresses and facsimile numbers set forth below (or to such other
addresses or facsimile numbers as a party may designate as to itself by not less than five
(5) Business Days notice to the other parties):

	 	 	 
	if to Standard
Bank, to:

	 	Cannon Bridge House
	 

	 	25 Dowgate Hill
	 

	 	London EC 4R 2SB
	 

	 	Fax: [(852) 2822 7947]
	 

	 	Attention: John Wixley
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Standard Bank Asia Limited
	 

	 	[                                        ]
	 

	 	Fax: [                    ]
	 

	 	Attention: [                    ]
	 
	 	 
	if to any FEEL
Shareholder, to:

	 	Suite 406, Block C, Grand Place
	 

	 	5 Hui Zhong Road
	 

	 	Chaoyang District, Beijing 10010, PRC
	 

	 	Attention: Mr. Zhang Ruilin
	 

	 	Facsimile: (8610) 5123 8866

	4.	 	MISCELLANEOUS

	 	4.1	 	Governing Law and Arbitration. This letter shall be governed by and construed in
accordance with the English law without regard to conflicts of laws principles. The
provisions of Clause 13 of the Original Agreement shall be deemed to be incorporated in this
letter in full, mutatis mutandis, save that references to “this Agreement” shall be construed
as references to this letter and references to “Parties” or “Party” shall be construed as
references to parties or party to this letter.

4

 

	 	4.2	 	Assignment. The provisions of this letter shall be binding upon and accrue to
the benefit of the Parties and their respective successors and permitted assigns.
Notwithstanding the foregoing, none of the Parties may assign its rights and obligations in
whole or in part hereunder without the prior written consent of the other party, except that
Standard Bank may assign its rights under this letter, in whole or in part, to any Person
who acquires Shares held by Standard Bank.
	 
	 	4.3	 	Amendments and waivers. All amendments and other modifications hereof or waivers of
the observance of any term hereof (either generally or in a particular instance and either
retroactively or prospectively) shall be in writing and signed by each of the parties.
	 
	 	4.4	 	No Waiver. The failure of a party at any time to require observance or performance
by any other party of any of the provisions of this letter shall in no way affect the party’s
right to require such observance or performance at any time thereafter, nor shall the waiver
by any party of a breach of any provision hereof be taken or held to be a waiver of any
succeeding breach of such provision. The rights and remedies provided in this letter are
cumulative and not exclusive of any rights or remedies otherwise provided by law.
	 
	 	5.6	 	Counterparts. This letter may be signed in any number of counterparts, each of which
is an original and all of which, taken together, constitute one and the same instrument. This
letter may also be executed and delivered by facsimile signature and in any number of
counterparts, each of which shall be deemed an original and all of which, taken together,
constitute one and the same instruments.

[Remainder of Page Intentionally Left Blank]

5

 

	 	 	 	 	 
	 	Very truly yours,

ZHANG RUILIN

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 
	 	ZHAO JIANGWEI

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 
	 	SHANG ZHIGUO

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	Accepted and agreed to

on the terms set forth above as of the

date first written above:

Standard Bank PLC.

 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

6

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