Document:

exv10w2

 

Exhibit 10.2

AMENDMENT, CONSENT AND WAIVER

     This AMENDMENT, CONSENT AND WAIVER (this “Agreement”) is made and entered into as of the 13th
day of June, 2007 by and among CanArgo Energy Corporation, a Delaware Corporation (“CanArgo”), and
the individuals and entities who or which are signatories hereto.

     WHEREAS, CanArgo and certain persons (the “Subordinated Noteholders”) have entered into a Note
Purchase Agreement dated as of March 3, 2006, as amended (the “Note Purchase Agreement”), pursuant
to which CanArgo issued $13,000,000 in aggregate principal amount of Senior Subordinated
Convertible Guaranteed Promissory Notes due September 1, 2009 (the “Subordinated Notes”); and

     WHEREAS, pursuant to the terms of the Subordinated Notes, interest due on the Subordinated
Notes shall be payable on the unpaid balance thereof in cash at the per annum rates of interest set
out thereon, payable semi annually on the thirtieth day of June and December in each year until the
principal amount thereof shall have become due and payable; and

     WHEREAS, CanArgo and the Subordinated Noteholders wish to amend the terms of the Subordinated
Notes and the Note Purchase Agreement such that the interest payment due on June 30, 2007 shall not
be paid in cash but shall in substitution be satisfied by the issue of further Subordinated Notes
to the Subordinated Noteholders.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency or which is hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

     5. Definitions. Capitalized terms used herein but not otherwise defined have the
meanings assigned to them in the Note Purchase Agreement.

     6. Consent and Waiver. Notwithstanding the provisions of any Loan Document to the
contrary provided, in accordance with Section 19 of the Note Purchase Agreement, the Subordinated
Noteholders hereby irrevocably and unconditionally consent to, and waive any rights they may have
under the Note Purchase Agreement, the Subordinated Notes or any other Loan Documents in connection
with the amendment and waiver of the terms of the Subordinated Notes to provide that the interest
payments due to each of the Subordinated Noteholders on June 30, 2007 shall not be paid in cash but
shall in substitution be satisfied in full by way of the issue and sale to the Subordinated
Noteholders of further Subordinated Notes of the same tenor as the existing Subordinated Notes and
imprinted with the same restrictive legend with the aggregate principal amount of such further
notes being equal to the proportion of the interest payment due to the particular Subordinated
Noteholder as at such date (rounded to the nearest US$1).

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The consent, release and amendment granted in this Section 2 only applies to the matter described
in this clause, and do not constitute a waiver of, or consent to, any other amendment to or waiver
of any other provisions of the Loan Documents.

     7. Effect on Loan Documents. This Agreement and the amendments set forth herein are
limited to the specific purpose for which it is entered into and, except as specifically set forth
above, (a) shall not be construed as a consent, waiver, amendment or other modification with
respect to any other term, condition or other provision of any Loan Document and (b) each of the
Loan Documents shall remain in full force and effect and are each hereby ratified and confirmed.

     8. Miscellaneous.

          (a) Successors and Assigns; Headings; Choice of Law, etc. This Agreement shall be
binding on and shall inure to the benefit of CanArgo and the Subordinated Noteholders and their
respective successors and assigns, heirs and legal representatives; provided that CanArgo may not
assign its rights hereunder without the prior written consent of the Required Holders. The
headings in this Agreement have been inserted for convenience purposes only and shall not be used
in the interpretation or enforcement of this Agreement. The Agreement shall be interpreted and
enforced in accordance with the laws of the State of New York, United States of America, applicable
to contracts made in and to be performed in such State. There shall be no third party
beneficiaries of any of the terms and provisions of this Agreement.

          (b) Entire Agreement; Amendments. This Agreement, including all documents attached
hereto, incorporated by reference herein or delivered in connection herewith, constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede all other prior
understandings, oral or written, with respect to the subject matter hereof and may not be amended,
or any provision thereof waived, except by an instrument in writing signed by the parties hereto.

          (c) Severability. Whenever possible each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

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          (d) Counterparts. This Agreement may be executed in any number of counterparts and by
the different parties on separate counterparts, and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same instrument.
Delivery of an executed counterpart of a signature page to this Agreement by telecopy shall be
equally effective as the delivery of a manually executed counterpart of this Agreement.

     IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto or by their
representatives, thereunto duly authorized, as of the day and year first above written.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CANARGO ENERGY CORPORATION

 	 
	 	 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	 	SUBORDINATED NOTEHOLDERS:

THOMAS L. GIPSON

 	 
	 	
 	 
	 	 	 
	 
	 	ROBERT L. GIPSON

 	 
	 	
 	 
	 	 	 
	 
	 	PENRITH LTD.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

13

 

	 	 	 	 	 
	PERSISTENCY

 	 	 
	By:  	
 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

AGREED AND ACKNOWLEDGED

	 	 	 	 	 
	 	CANARGO LIMITED

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CANARGO LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CANARGO NORIO LIMITED

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CANARGO (NAZVREVI) LIMITED

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

14

 

	 	 	 	 	 

	 	 	 	 	 
	 	NINOTSMINDA OIL COMPANY LIMITED

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

15exv10w3

 

Exhibit 10.3

AMENDMENT, CONSENT AND WAIVER

     This AMENDMENT, CONSENT AND WAIVER (this “Agreement”) is made and entered into as of the 13th
day of June, 2007 by and among CanArgo Energy Corporation, a Delaware Corporation (“CanArgo”) and
Persistency, a company incorporated in the Cayman Islands (“Purchaser”).

     WHEREAS, CanArgo and the Purchaser have entered into a Note Purchase Agreement dated as of
June 28, 2006 (the “Note Purchase Agreement”), pursuant to which CanArgo issued $10,000,000 in
aggregate principal amount of a 12% Subordinated Convertible Guaranteed Promissory Note due
September 1, 2009 (the “12% Subordinated Note”); and

     WHEREAS, pursuant to the terms of the 12% Subordinated Note, interest on the 12% Subordinated
Note shall be payable on the unpaid balance thereof in cash at the per annum rates of interest set
out thereon, payable semi annually on the thirtieth day of June and the thirty-first day of
December in each year until the principal thereof shall have become due and payable; and

     WHEREAS, CanArgo and the Purchaser wish to amend the terms of the 12% Subordinated Note and
the Note Purchase Agreement such that the interest payment due on June 30, 2007 shall not be paid
in cash but shall in substitution be satisfied by the issue of a further 12% Subordinated Note to
the Purchaser; and

     WHEREAS, CanArgo has also entered into (i) a Note Purchase Agreement dated as of July 25, 2005
with certain persons (the “Senior NPA”) pursuant to which CanArgo issued $25,000,000 in aggregate
principal amount of Senior Secured Notes due July 25, 2009 (the “Senior Notes”); and (ii) a Note
and Warrant Purchase Agreement dated as of March 3, 2006 with certain persons (the “Subordinated
NPA”) pursuant to which CanArgo issued $13,000,000 of Senior Subordinated Convertible Guaranteed
Promissory Notes due September 1, 2009 (the “Subordinated Notes”), and it is intended that the
terms of the Senior Notes, the Senior NPA, Subordinated Notes and the Subordinated NPA are also
amended such that the interest payments due on June 30, 2007 in respect of each shall not be paid
in cash but shall in substitution be satisfied by the issue of further Senior Notes and
Subordinated Notes to the respective holders of such notes.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency or which is hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

     9. Definitions. Capitalized terms used herein but not otherwise defined have the
meanings assigned to them in the Note Purchase Agreement.

     10. Consent and Waiver. Notwithstanding the provisions of any Loan Document to the
contrary provided, in accordance with Section 19 of the Note Purchase

16

 

Agreement, the Purchaser hereby irrevocably and unconditionally consents to, and waives any
rights it may have under the Note Purchase Agreement, the 12% Subordinated Note or any other Loan
Documents in connection with:-

	 	(i)	 	the amendment and waiver of the terms of
the 12% Subordinated Note to provide that the interest payment due to
the Purchaser on June 30, 2007 shall not be paid in cash but shall in
substitution be satisfied in full by way of the issue and sale to the
Purchaser of a further 12% Subordinated Note of the same tenor as the
existing 12% Subordinated Note and imprinted with the same
restrictive legend with the aggregate principal amount of such
further note being equal to the interest due to the Purchaser in
respect of the 12% Subordinated Note as at such date (rounded to the
nearest whole US$1).
	 
	 	(ii)	 	the amendment and waiver of the terms of
the Senior Notes to provide that the interest payment due to the
holders of the Senior Notes on June 30, 2007 shall not be paid in
cash but shall in substitution be satisfied in full by way of the
issue and sale to the holders of the Senior Notes of further Senior
Notes and imprinted with the same restricted legend with the
aggregate principal amount of such further notes being equal to the
interest due to the holders of the Senior Notes in respect of the
Senior Notes as at such date (rounded to the nearest whole US$1)
	 
	 	(iii)	 	the amendment and waiver of the terms of
the Subordinated Notes to provide that the interest payment due to
the holders of the Subordinated Notes on June 30, 2007 shall not be
paid in cash but shall in substitution be satisfied in full by way of
the issue and sale to the holders of the Subordinated Notes of
further Subordinated Notes and imprinted with the same restricted
legend with the aggregate principal amount of such further notes
being equal to the interest due to the holders of the Subordinated
Notes in respect of the Subordinated Notes as at such date (rounded
to the nearest whole US$1)

     The consents, amendments and waivers granted in this Section 2 only apply to the matters
described in this clause, and do not constitute a waiver of, or consent to, any other amendment to
or waiver of any other provisions of the Loan Documents.

     11. Effect on Loan Documents. This Agreement and the amendments set forth herein are
limited to the specific purpose for which it is entered into and, except as specifically set forth
above, (a) shall not be construed as a consent, waiver, amendment or

17

 

other modification with respect to any other term, condition or other provision of any Loan
Document and (b) each of the Loan Documents shall remain in full force and effect and are each
hereby ratified and confirmed.

     12. Miscellaneous.

          (a) Successors and Assigns; Headings; Choice of Law, etc. This Agreement shall be
binding on and shall inure to the benefit of CanArgo and the Purchaser and their respective
successors and assigns, heirs and legal representatives; provided that CanArgo may not assign its
rights hereunder without the prior written consent of the Required Holders. The headings in this
Agreement have been inserted for convenience purposes only and shall not be used in the
interpretation or enforcement of this Agreement. The Agreement shall be interpreted and enforced in
accordance with the laws of the State of New York, United States of America, applicable to
contracts made in and to be performed in such State. There shall be no third party beneficiaries
of any of the terms and provisions of this Agreement.

          (b) Entire Agreement; Amendments. This Agreement, including all documents attached
hereto, incorporated by reference herein or delivered in connection herewith, constitute the entire
agreement of the parties with respect to the subject matter hereof and supersede all other prior
understandings, oral or written, with respect to the subject matter hereof and may not be amended,
or any provision thereof waived, except by an instrument in writing signed by the parties hereto.

          (c) Severability. Whenever possible each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under such law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

          (d) Counterparts. This Agreement may be executed in any number of counterparts and by
the different parties on separate counterparts, and each such counterpart shall be deemed to be an
original, but all such counterparts shall together constitute but one and the same instrument.
Delivery of an executed counterpart of a signature page to this Agreement by telecopy shall be
equally effective as the delivery of a manually executed counterpart of this Agreement.

18

 

     IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto or by their
representatives, thereunto duly authorized, as of the day and year first above written.

	 	 	 	 	 
	 	CANARGO ENERGY CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

PURCHASER:

PERSISTENCY

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

19

 

AGREED AND ACKNOWLEDGED

	 	 	 	 	 
	 	CANARGO LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CANARGO LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CANARGO NORIO LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	CANARGO (NAZVREVI) LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	NINOTSMINDA OIL COMPANY LIMITED

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

20

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