Document:

kos_Ex10-42

		

			 

		

		
			Exhibit 10.42
		

		
			 
		

		
			Private and Confidential
		

		
			15 DECEMBER 2016
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			KOSMOS ENERGY MAURITANIA 
		

		
			AND
		

		
			BP EXPLORATION (WEST AFRICA) LIMITED
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			FARMOUT AGREEMENT RELATING TO 
		

		
			BLOCKS C6, C8, C12 and C13, OFFSHORE MAURITANIA
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			TABLE OF CONTENTS
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						ARTICLE 1 DEFINITIONS

					
1 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 2 ASSIGNMENT OF INTEREST

					
8 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 3 CONDITIONS PRECEDENT

					
9 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 4 CONSIDERATION

					
13 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 5 OBLIGATIONS AND LIABILITIES

					
17 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 6 INTERIM PERIOD OBLIGATIONS

					
19 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 7 WARRANTIES

					
21 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 8 TAX

					
24 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 9 CONFIDENTIALITY

					
26 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 10 NOTICES

					
27 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 11 LAW AND DISPUTE RESOLUTION

					
28 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 12 FORCE MAJEURE

					
29 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 13 DEFAULT

					
30 
				
	
					
						 

					
					
						 

				
	
					
						ARTICLE 14 GENERAL PROVISIONS

					
30 
				

		
			 
		

		
			EXHIBITS
		

		
			 
		

			
					
						A.

					
					
						Eligible Discovery

					
					
						I.

					
					
						Farmee Warranties

				
	
					
						B.

					
					
						NOT USED

					
					
						J.1

					
					
						Firm Work Programme (Exploration & Appraisal)

				
	
					
						C.

					
					
						Contract Area

					
					
						   2.

					
					
						Firm Work Programme (Development)

				
	
					
						D.

					
					
						Form of JOA Novation Agreement

					
					
						K.

					
					
						Operator Transition Provisions

				
	
					
						E.

					
					
						Assignment

					
					
						L.

					
					
						Questions and Answers

				
	
					
						F.

					
					
						NOT USED

					
					
						M.

					
					
						ABC Obligations

				
	
					
						G.

					
					
						NOT USED

					
					
						N.

					
					
						Farmor Retained Liabilities

				
	
					
						H.

					
					
						Farmor Warranties

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			FARMOUT AGREEMENT
		

		
			 
		

		
			THIS AGREEMENT is entered into on the 15th  day of December 2016 by and between Kosmos Energy Mauritania, a company existing under the laws of the Cayman Islands (hereinafter referred to as “Farmor”) and BP Exploration (West Africa) Limited, a company existing under the laws of England and Wales (hereinafter referred to as “Farmee”).  The companies named above, and their respective successors and assignees (if any), may sometimes individually be referred to as “Party” and collectively as the “Parties”.
		

		
			 
		

		
			WITNESSETH:
		

		
			 
		

		
			WHEREAS, the Contracts for Blocks C8, C12 and C13 were signed on 5 April 2012 by and between Farmor, SMHPM and the Islamic Republic of Mauritania for the exploration, development and production of hydrocarbons in the Blocks C8, C12 and C13 portions of the Contract Area; 
		

		
			 
		

		
			WHEREAS, the Contract for Block 6 was signed on 11 October 2016 by and between Farmor, SMHPM and the Islamic Republic of Mauritania for the exploration, development and production of hydrocarbons in the Block C6 portion of the Contract Area;
		

		
			 
		

		
			WHEREAS, as of the date of this Agreement, Farmor holds ninety percent (90%) of the rights and obligations in the Contract and the Contract Area for Blocks C6, C8, C12 and C13;
		

		
			 
		

		
			WHEREAS, as of the date of this Agreement, Farmor holds a ninety percent (90%) participating interest and a one hundred percent (100%) paying interest in the rights and obligations in the JOA for Blocks C8, C12 and C13, and when issued Farmor will hold a ninety percent (90%) participating interest and one hundred percent (100%) paying interest in the rights and obligations in the JOA for Block C6; and
		

		
			 
		

		
			WHEREAS, Farmor is willing to assign and transfer a certain undivided interest in its rights and obligations under the Contract and JOA for Blocks C8, C12 and C13, the Contract for Block C6, and when issued the JOA for Block C6 to Farmee in accordance with the terms set forth herein and Farmee agrees to accept such interest.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the premises and the mutual covenants and obligations set out below and to be performed, Farmor and Farmee agree as follows:
		

		
			 
		

		
			ARTICLE 1
		

		
			DEFINITIONS 
		

		
			 
		

		
			1.1        As used in this Agreement, the following capitalized words and terms shall have the meaning ascribed to them below.  Any capitalized term used in this Agreement and not specifically 
		

		
			
		

		
			

		 

		

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			defined in this Agreement shall have the same meaning as in the Contract or JOA, as the context requires.
		

		
			 
		

		
			Affiliate means a legal entity which Controls, or is Controlled by, or which is Controlled by an entity which Controls, a Party, and “Affiliates” shall be construed accordingly.
		

		
			 
		

		
			Agreement means this Farmout Agreement together with the Exhibits, and any extension, renewal or amendment hereof agreed to in writing by the Parties.
		

		
			 
		

		
			Answer means a written response made by Farmor to Farmee in respect of any question or clarification sought by Farmee in respect of or in relation to the Interests, the Interest Documents or the Contract Area, as set out in Exhibit L.
		

		
			 
		

		
			Anti-Corruption Laws and Obligations means:
		

		
			 
		

		
			(a)      The OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, 1997;
		

		
			 
		

		
			(b)      the Foreign Corrupt Practices Act of 1977 of the United States of America, as amended by the Foreign Corrupt Practices Act Amendments of 1988 and 1998, and as may be further amended and supplemented from time to time;
		

		
			 
		

		
			(c)      the Bribery Act 2010 of the United Kingdom and any regulations or guidance issued pursuant to such legislation, as may be amended and supplemented from time to time; and
		

		
			 
		

		
			(d)      any act, rule or regulation of the United States of America, the United Kingdom, the Islamic Republic of Mauritania or any other relevant jurisdiction related to prevention of bribery, corruption, or money laundering,
		

		
			 
		

		
			provided that, in the event that a Party acting with respect to this Agreement is outside the jurisdiction or scope of any of the aforementioned laws, such laws shall be interpreted as though such Party were within the jurisdiction and scope of such law.
		

		
			 
		

		
			Approval means the issuance of the approval of the Government required in order to effect the legal assignment and transfer of the Interests from Farmor to Farmee.
		

		
			 
		

		
			Assignment means the document, substantially in the form attached as Exhibit E, by which the Interest in the Contract is assigned and transferred to Farmee by Farmor as provided hereunder, together with any revisions or amendments thereto approved by Farmee (such approval not to be unreasonably withheld).
		

		
			 
		

		
			Associated Person means a person acting on behalf of the first Person or the first Person’s Affiliates, whether as personnel of any tier, as an officer, director or under a power of attorney or other similar authorization and specifically including consultants, representatives, agents, employees or other similar persons who have the right or power to act on behalf of the first Person or its Affiliate.
		

		
			 
		

		
			BP Senegal means BP Indonesia Oil Terminal Investment Limited, a company existing under the laws of England and Wales, being a party to the Senegal Agreement.
		

		
			 
		

		
			Brent means the arithmetic average of the high and low spot daily assessments of Brent (Dated) 
		

		
			
		

		
			

		 

		

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			quotations as published in Platt’s Crude Oil Marketwire for the relevant period of time.
		

		
			 
		

		
			Business Day means a day other than Saturday or Sunday on which banks are generally open for business in London and Dallas; and “Business Days” shall be construed accordingly.
		

		
			 
		

		
			Completion Date means the date on which the Conditions Precedent have all been satisfied or waived.
		

		
			 
		

		
			Commercial Production means any production from the Contract Area pursuant to a Development Plan (as defined under the JOA) as approved in accordance with the JOA.
		

		
			 
		

		
			Conditions Precedent means the conditions precedent contained in or referred to in Article 3.1.
		

		
			 
		

		
			Consideration has the meaning given in Article 4.1. 
		

		
			 
		

		
			Contract means together the Petroleum Agreement and any extension, renewal or amendment thereto, and all exploration authorizations granted pursuant to the Petroleum Agreement or any successor title that governs all or part of the Contract Area, as all such instruments and titles are governed by the Hydrocarbon Code.
		

		
			 
		

		
			Contract Area means the area or blocks more particularly described in Exhibit C.
		

		
			 
		

		
			Control means the ownership directly or indirectly of fifty percent (50%) or more of the voting rights in a legal entity. “Controls”, “Controlled by” and other derivatives shall be construed accordingly.
		

		
			 
		

		
			Co-Venturer means any third party to a joint operating agreement that relates to the Contract Area from time to time, and “Co-Venturers” shall be construed accordingly.
		

		
			 
		

		
			Data means all accounts, books, data and reports in the possession, custody or control of Farmor and its Affiliates relating to the Interests including correspondence, petroleum engineering, reservoir engineering, drilling, geoscientific, seismic and all other kinds of technical data and reports, samples, well logs and analyzes in whatever form the same are maintained, including third party information, including seismic, which Farmor or its Affiliates has the right to disclose, acquired pursuant to the Interest Documents, subject to the exclusion of work product of, or attorney-client communications with, legal counsel for Farmor or any Affiliate of Farmor.
		

		
			 
		

		
			Development Carry shall have the meaning given to it in Article 4.5.
		

		
			 
		

		
			Disclosure Documents means the Disclosure Letter and the documents stored in electronic form on a hard drive provided to each Party by Intralinks Inc., that represent the entire contents of Farmor’s data room at 16.55 (GMT) (London time)/ 10.55 am Dallas time (CST) on 12th December 2016.
		

		
			 
		

		
			Disclosure Letter means the letter described as such, dated as of the date of this Agreement and addressed to Farmee by Farmor, which sets out certain disclosures against the Farmor’s Warranties.
		

		
			 
		

		
			Dollars or US$ means the currency of the United States of America.
		

		
			 
		

		
			Effective Date means 1 July 2016.
		

		
			 
		

		
			Eligible Discovery means a discovery of Hydrocarbons (as defined under the Contract) in the 
		

		
			
		

		
			

		 

		

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			Contract Area, other than the Tortue Discovery Area (from the surface to the equivalent of the oldest stratigraphy currently penetrated in the development area by the Guembeul #1A Well) and the Marsouin Discovery Area (from the surface to the equivalent of the oldest stratigraphy currently penetrated in the development area in the Marsouin #1 Well) as shown and described on Exhibit A, Parts 1 and 2.
		

		
			 
		

		
			Encumbrances means all liens, charges (fixed or floating), mortgages, pledges, encumbrances or security or net profit interests or royalty or overriding interests, carried interests, production payments, claims, options, pre-emption rights or equities or any agreement to create any of the foregoing other than (in each case) those arising under the provisions of the Interest Documents “Encumbrance” and “Encumber” shall be construed accordingly;
		

		
			 
		

		
			Exploitation Perimeter shall have the meaning given to it in the Contract.
		

		
			 
		

		
			Exploration & Appraisal Carry shall have the meaning given to it in Article 4.4.
		

		
			 
		

		
			Farmee Participating Interest Share means the Farmee's Participating Interest share accepted by Farmee on and from the Completion Date and as set out in Article 2.4.
		

		
			 
		

		
			Farmee Warranties means the representations and warranties set out in Exhibit I.
		

		
			 
		

		
			Farmee’s Account means the account information notified by Farmee to Farmor from time to time. 
		

		
			 
		

		
			Farmor Retained Liabilities means all costs, charges, expenses, duties, losses, liabilities and obligations which accrue or relate to any period before, on or after the date of this Agreement and arise in relation to the matters set out in Exhibit N.
		

		
			 
		

		
			Farmor Warranties means the representations and warranties set out in Exhibit H.
		

		
			 
		

		
			Farmor’s Account means the account information notified by Farmor to Farmee from time to time with at least five (5) Business Days' Notice. 
		

		
			 
		

		
			Farmor Payment Failure means: (i) any failure by the Farmor to pay any amount owed by Farmor to Farmee in respect of this Agreement (other than under Article 4.7B hereof); or (ii) any failure by Kosmos Senegal to pay any amount owed by Kosmos Senegal in respect of the Senegal Agreement.
		

		
			 
		

		
			Firm Work Programme (Development) means the Tortue development studies required to support a late 2017 investment decision on the Tortue area as set out in Exhibit J 2.
		

		
			 
		

		
			Firm Work Programme (Exploration and Appraisal) means the work programme as set out in Exhibit J 1.
		

		
			 
		

		
			Good Industry Practice means the exercise of that degree of skill, diligence, prudence and foresight which would reasonably and ordinarily be expected to be applied by a skilled and experienced person engaged in the same type of undertaking.
		

		
			 
		

		
			Government means the government of the Islamic Republic of Mauritania and any political subdivision, agency or instrumentality thereof, including SMHPM.
		

		
			 
		

		
			Government Official means, whether appointed, elected or otherwise, any:
		

		
			 
		

		
			
		

		
			

		 

		

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			(a) minister, civil servant, director, officer, principal, agent or employee or other official of: (i) any government (whether central, federal, state, provincial or local) ministry, body, department, agency, instrumentality or part of any of them; (ii) any public international organization; (iii) any department, agency or body of any government-owned or controlled company, agency, enterprise, joint venture, or partnership; and (iv) any company, agency, enterprise, joint venture, or partnership in which a government owns an interest of more than thirty percent, and/or of any public international organization (such as the World Bank or United Nations);
		

		
			 
		

		
			(b) person acting in any official, legislative, administrative or judicial capacity for or on behalf of any government department, agency, body, instrumentality or public international organization, including without limitation any judges or other court officials, military personnel and customs, police, national security or other law enforcement personnel;
		

		
			 
		

		
			(c) officer or employee of a political party or any person acting in an official capacity on behalf of a political party; and/or
		

		
			 
		

		
			(d) candidate for political office.
		

		
			 
		

		
			Guarantee means (a) the bank guarantee to be provided by non-Operator to Operator pursuant to Article 3.4(a) and (b) the guarantee to be provided by Farmee to Farmor pursuant to Article 3.4(b).
		

		
			 
		

		
			Hydrocarbon Code means Code of Crude Hydrocarbons (Law No. 2010-33 dated 20 July 2010) as modified and completed.
		

		
			 
		

		
			Initial Payment shall have the meaning given to it in Article 4.2.
		

		
			 
		

		
			Interests means an undivided legal and beneficial interest of sixty-two percent (62%) in the rights and obligations under the Contract and an undivided interest of sixty-two percent (62%) participating interest and a sixty-eight decimal eighty-nine percent (68.89%) Paying Interest in the rights and obligations under the JOA, in each case to be acquired by Farmee from Farmor pursuant to this Agreement.
		

		
			 
		

		
			Interest Documents means the Contract and JOA.
		

		
			 
		

		
			Interim Period Costs means all costs properly incurred by Operator directly in relation to the Farmee’s Paying Interest share under the JOA for Joint Operations (as defined under the JOA) undertaken by Operator pursuant to the terms of the JOA during the Interim Period if applicable, and determined pursuant to Article 4.3 but which shall not include the Farmor Retained Liabilities. 
		

		
			 
		

		
			Interim Period means the period commencing from 1 July, 2016 until, but not including the Completion Date.
		

		
			 
		

		
			JOA or Joint Operating Agreement means (a) the three (3) Amended and Restated Joint Operating Agreements each dated 1 December 2014 entered into by Farmor and SMHPM for operations in the Blocks C8, C12 and C13 portions of the Contract Area; and (b) the Joint 
		

		
			
		

		
			

		 

		

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			Operating Agreement to be entered into on terms substantially similar to the JOAs set out in (a) above, by Farmor,  SMHPM and, if such JOA has yet to be executed prior to the Completion Date, by Farmee for operations in the Block C6 portion of the Contract Area, copies of which are included in the Disclosure Materials. 
		

		
			 
		

		
			JOA Novation means the novation and amendment agreement in respect of the JOA to be entered into by the Parties and SMHPM pursuant to the terms of this Agreement, which forms Exhibit D, together with any revisions or amendments thereto approved by Farmee (such approval not to be unreasonably withheld).
		

		
			 
		

		
			JV Co has the meaning given in the Senegal Agreement.
		

		
			 
		

		
			Kosmos Senegal means Kosmos Energy Senegal, a company incorporated in the Cayman Islands with its registered office at 4th Floor, Century Yard, Cricket Square, Hutchins Drive, Elgin Avenue, George Town, Grand Cayman KY1-1209.
		

		
			 
		

		
			Laws/Regulations means those laws, statutes, rules and regulations governing activities under the Contract.
		

		
			 
		

		
			LNG means processed Natural Gas (as defined under the Contract) consisting primarily of methane (CH4) in a liquid state at or below its boiling point and at a pressure of approximately one (1) atmosphere.
		

		
			 
		

		
			Operator means the operator under the Contract and the JOA.
		

		
			 
		

		
			Operator Transfer Date means 1 April 2017 (or such later date as is mutually agreed between the Parties and SMHPM).
		

		
			 
		

		
			Participating Interest means as to any party to the Contract or the JOA, the undivided interest of such party expressed as a percentage of the total interest of all parties in the rights and obligations derived from the Contract or the JOA as the context so requires. 
		

		
			 
		

		
			Paying Interest means as to any party to the JOA, other than SMHPM, the undivided interest of such party in the payment obligations under the JOA in respect of the Participating Interest share of SMHPM in a Contract, until SMHPM elects to participate in an Exploitation Perimeter as set forth in Article 2.4 from which time the Parties’ Paying Interests in such Exploitation Perimeter will be aligned with such Party’s Participating Interests.
		

		
			 
		

		
			Person means an individual, corporation, company, government entity, state enterprise, or any other legal entity.
		

		
			 
		

		
			Petroleum Agreement means (a) the three (3) Exploration and Production Contracts each dated 5 April 2012 entered into by Farmor, SMHPM and the Islamic Republic of Mauritania for the exploration and exploitation of hydrocarbons in the Blocks C8, C12 and C13 portions of the Contract Area; and (b) the Exploration and Production Contract dated 11 October 2016 entered into by Farmor, SMHPM and the Islamic Republic of Mauritania for the exploration and exploitation of hydrocarbons in the Block C6 portion of the Contract Area, copies of which are included in the Disclosure Materials.
		

		
			 
		

		
			
		

		
			

		 

		

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			Preferential Right means a right held by any third party under the terms of the Contract, JOA or under applicable law rule or regulation to pre-empt the transaction contemplated by this Agreement or affect its terms in any way.
		

		
			 
		

		
			Quarter has the meaning ascribed to that term under the Contract.
		

		
			 
		

		
			Senegal Agreement means the Sale and Purchase Agreement concerning the shares of JVCo between Kosmos Senegal and BP Senegal of even date with this Agreement. 
		

		
			 
		

		
			Senegal Area means the area covered by the Hydrocarbon Exploration and Production Sharing Contract granted by the Republic of Senegal dated January 17, 2012 covering the Saint Louis Offshore Profond Block and the Hydrocarbon Exploration and Production Sharing Contract granted by the Republic of Senegal dated January 17, 2012 covering the Cayar Offshore Profond Block.
		

		
			 
		

		
			SMHPM or La Société Mauritanienne Des Hydrocarbures et de Patrimoine Minier means the national oil company of the Islamic Republic of Mauritania, incorporated by Decree No. 2005-106 dated 7 November 2005 as amended by Decree No. 2009-168 dated 3 May 2009 and Decree No. 2014-01 dated 6 January 2014 under the laws of the Islamic Republic of Mauritania and having its registered office at Ilot K, Rue 42-133, No. 349, BP 4344, Nouakchott, Islamic Republic of Mauritania.
		

		
			 
		

		
			Success Fee means a fee per Barrel (as defined under the Contract) of total production of all liquid Hydrocarbons (as defined under the Contract) in the natural state or obtained from Natural Gas by condensation or separation with an API gravity equal to or greater than 22.3°, but excluding LNG, from each Eligible Discovery calculated on the basis of the average price of Brent during the relevant Quarter of production multiplied by one decimal sixty-seven cents (US$ 0.0167), which yields a Success Fee of one Dollar (US$ 1.00) per Barrel of production at a Brent price of sixty Dollars (US$ 60); provided that the Success Fee per Barrel shall not exceed two Dollars (US$ 2.00) per Barrel regardless of the average price of Brent.
		

		
			 
		

		
			Surviving Provisions means Articles 1 (Definitions and Interpretation), 2.5C (Transfer of Title and Risk), 3.2E (Acts to be Performed), 7.3A (Breach of Warranty), 7.6 (Fraud and Wilful Concealment), 8 (Tax), 9 (Confidentiality), 10 (Notices), 11 (Law and Dispute Resolution), 14 (General Provisions) and Exhibit M (ABC Obligations). 
		

		
			 
		

		
			Tax means any tax, royalty, levy, charge, impost, duty, fee, deduction, compulsory loan or withholding which is assessed, levied, imposed or collected by the Government tax authorities or any tax authorities of any other jurisdiction and includes any interest, fine, penalty, charge, fee or other amount imposed in respect of the above, and “Taxes” shall be construed accordingly.
		

		
			 
		

		
			Wholly-Owned Affiliate means, in relation to any entity, any other entity that is wholly owned and controlled by such entity or that is wholly owned and controlled by a third person which has common control over the first two entities.
		

		
			
		

		
			

		 

		

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			ARTICLE 2
		

		
			ASSIGNMENT OF INTEREST
		

		
			 
		

		
			2.1        Grant
		

		
			 
		

		
			Subject to the satisfaction of the Conditions Precedent and in exchange for the Consideration, with effect from the Completion Date Farmor shall assign and transfer to Farmee, and Farmee agrees to accept, the Interests, free from Encumbrances, excluding any Encumbrances contained within the Contract.  
		

		
			 
		

		
			2.2        Joint Operating Agreement
		

		
			 
		

		
			A. Following the Completion Date the Parties shall use reasonable endeavours to agree and execute the JOA Novation with SMHPM. From the date specified in the JOA Novation, the JOA Novation shall be legally effective in accordance with its terms. 
		

		
			 
		

		
			AA. In the event that the JOA for operations in the Block C6 portion of the Contract Area has not been executed by the Completion Date, Farmor and Farmee shall execute such JOA with SMHPM on terms substantially similar to the JOAs for operations in the Blocks C8, C12 and C13 portions of the Contract Area or on such other terms as the Parties agree (acting reasonably).
		

		
			 
		

		
			B. From the date of this Agreement, Farmee shall be deemed to be a party to the JOA in respect of the provision by the Operator of any information sent or released in any way to the parties to the JOA, and Farmor shall use all reasonable endeavours to procure the agreement of any Co-Venturer to the right of Farmee to receive such information pursuant to the terms of this Article 2.2B.
		

		
			 
		

		
			C. From the date of this Agreement, the Parties agree, in respect of the JOA and the Contract, to comply with the obligations set out in paragraphs 1 to 7 of Exhibit M for the duration of the JOA, the Contract and any agreements entered into that are anticipated by the JOA and or the Contract. 
		

		
			 
		

		
			2.3        Binding Effect
		

		
			 
		

		
			Without prejudice to Article 3.3 and subject to Article 3.1, Farmor and Farmee shall be bound by this Agreement as of the date hereof and shall fully perform all of their respective obligations under this Agreement.  
		

		
			
		

		
			

		 

		

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			2.4        Ownership
		

		
			 
		

		
			From the Completion Date, the Participating Interests of all parties to the Contract and JOA shall be:
		

		
			 
		

			
					
						Person

					
					
						Contract
Participating
Interest (%)

					
					
						JOA Participating
Interest / (Paying
Interest*) (%)

				
	
					
						Farmor

					
					
						28

					
					
						28 / 31.11

				
	
					
						Farmee

					
					
						62

					
					
						62 / 68.89

				
	
					
						SMHPM

					
					
						10

					
					
						10 / 0

				
	
					
						TOTAL

					
					
						100

					
					
						100

				

		

		
			*Until SMHPM elects to participate in an Exploitation Perimeter
		

		
			 
		

		
			2.5        Transfer of Title and Risk
		

		
			 
		

		
			A. On the Completion Date, title and risk in the Interests shall pass from Farmor to Farmee.
		

		
			 
		

		
			B. Farmee shall have no liability for any costs and no payments under this Agreement shall become due in respect of the Interests prior to the occurrence of the Completion Date, notwithstanding that Farmee agrees following the occurrence of the Completion Date to pay amounts to Farmor in respect of certain costs relating to the Interests that are incurred by Farmor prior to the Completion Date as part of the Consideration.
		

		
			 
		

		
			C. Save for the payment of the Consideration pursuant to the terms of this Agreement, Farmor shall be liable for and shall indemnify and hold Farmee harmless from all costs, charges, expenses, duties, losses, liabilities and obligations which Farmee pays, incurs or is liable for at any time which accrue or relate to any period prior to the Completion Date (including the Farmor Retained Liabilities) relating to the Interests.
		

		
			 
		

		
			D. To the extent not delivered or otherwise held by Farmee prior to the Completion Date all Data in the possession or control of Farmor (or copies of such Data) shall be made available for collection by Farmee at its own expense (it being agreed that such expense will be limited to Farmee’s logistical costs of collection and that Farmee will not be required to make any payment other than the Consideration for rights to ownership or use of the Data) within normal business hours as soon as reasonably practicable after the Completion Date.
		

		
			 
		

		
			ARTICLE 3
		

		
			CONDITIONS PRECEDENT
		

		
			 
		

		
			3.1        Conditions Precedent
		

		
			 
		

		
			The obligations of the Parties set out in Article 2.1 and Article 4 shall be conditional upon the satisfaction or waiver (as applicable) of the following, collectively called the “Conditions Precedent”:
		

		
			 
		

		
			(i)   issuance of a letter of Approval by the Mauritanian Minister of Petroleum, Energy and Mines 
		

		
			
		

		
			

		 

		

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			approving the transfer of the Interests from Farmor to Farmee to the Contract (or such approval being deemed effective pursuant to the Contract) and written approval of such Minister designating Farmee as Operator of the Contract Area with effect from the Operator Transfer Date;
		

		
			 
		

		
			(ii)  receipt by the Parties of a waiver or other evidence in writing of the expiration or non-exercise of any Preferential Right and written approval of the proposed Assignment and transfer of Operatorship to Farmee by SMHPM;
		

		
			 
		

		
			(iii) the execution and (if applicable) delivery of the Assignment in respect of each of the Interests by the Farmor and the Farmee
		

		
			 
		

		
			(iv) receipt of written confirmation from SMHPM approving the transfer of the Interests in the JOA from Farmor to Farmee;
		

		
			 
		

		
			(v)  receipt of written evidence by the Parties of the satisfaction of any additional regulatory requirements in Mauritania which are imposed on either Party, including any requirements relating to anti-trust issues; and
		

		
			 
		

		
			(vi) no notice of termination having been given in accordance with Article 3.3C.
		

		
			 
		

		
			3.2        Acts to be Performed
		

		
			 
		

		
			A. Subject to Article 3.2D, each party shall use commercially reasonable efforts to execute all documents, and do and procure to be done all such acts and things as are reasonably within its power to ensure the Conditions Precedent are satisfied as soon as is reasonably practicable after execution of this Agreement.
		

		
			 
		

		
			B. The Parties shall keep each other informed of progress towards the satisfaction of the Conditions Precedent and shall notify the other as soon as is reasonably practicable after it becomes aware that a Condition Precedent has been satisfied or, as the case may be, validly waived.
		

		
			 
		

		
			C. Waiver of any of the Conditions Precedent (whether in whole or in part) shall require the mutual consent of Farmor and Farmee in writing.
		

		
			 
		

		
			D. The Parties agree that: 
		

		
			 
		

		
			(i)   no formal request shall be sought from the Mauritanian Minister of Petroleum, Energy and Mines to approve the transfer of the Interests from Farmor to Farmee and designating Farmor as Operator of the Contract Area from Operator Transfer Date until such time as all Conditions Precedent set out in Article 3.1 have been satisfied or waived in accordance with Article 3.2C (other than the Condition Precedent set out in Article 3.1(i). 
		

		
			 
		

		
			
		

		
			

		 

		

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			E. In the event that the transfer of the Interests becomes effective prior to the Completion Date, from the date on which the transfer of the Interests becomes effective until the Completion Date:
		

		
			 
		

		
			(i)   to the extent permitted under Laws/Regulation and the relevant Contract and JOA, Farmee shall hold the Interests for the benefit of the Farmor; 
		

		
			 
		

		
			(ii)  the Farmee shall consult with Farmor in the exercise of any rights in relation to the Interests; and
		

		
			 
		

		
			(iii) the Farmor shall be liable for and shall indemnify and hold Farmee harmless from all costs, charges, expenses, duties, losses, liabilities and obligations which Farmee pays, incurs or is liable in relation to the Interests (including any amounts for which Farmee would otherwise be liable under the relevant Assignment or JOA Novation) during such period,
		

		
			 
		

		
			provided that if it becomes impossible to satisfy the remaining Conditions Precedent the Farmee will reassign the Interests to Farmor and the Parties will execute all documents necessary for such reassignment in substantially the same form as those pertaining to the original assignment and will cooperate in obtaining any required approvals for such reassignment.
		

		
			 
		

		
			3.3        Termination
		

		
			 
		

		
			A. Notwithstanding any period of Force Majeure under Article 12, if each of the Conditions Precedent are not satisfied (or waived pursuant to Article 3.2C) within two hundred seventy (270) days of the date of this Agreement, then either Party shall have the right to terminate this Agreement on notice pursuant to Article 3.3C.
		

		
			 
		

		
			B. Notwithstanding any other provision of this Agreement, if, prior to the Completion Date, Farmor or any other Person is or becomes the subject of any investigation, inquiry or enforcement proceeding by a governmental, administrative or regulatory body regarding an offence or alleged offence relating to the Interests under any of the Anti-Corruption Laws and Obligations that is likely to result in a material, detrimental impact to the Interests, the Interest Documents or this Agreement, Farmee shall have the right to terminate this Agreement on notice pursuant to Article 3.3C.
		

		
			 
		

		
			BB. Notwithstanding any other provision of this Agreement, the Farmee shall have the right to terminate this Agreement on notice pursuant to Article 3.3C, if: 
		

		
			 
		

		
			(i)   any of the Farmor Warranties was at the date of this Agreement, or has since become, untrue in any material respect and is likely to prevent or inhibit the ability of the Farmee to take title of the Interests; or
		

		
			 
		

		
			(ii)  the Farmor is in breach of any material undertaking in this Agreement and the breach is incapable of being cured before the Completion Date, or has continued without cure for a period of 30 days after the notice of breach from the Farmee or remains uncured two (2) days prior to the Completion Date.
		

		
			 
		

		
			C. A Party may terminate this Agreement pursuant to Articles 3.3A, 3.3B, 3.3BB, 3.3D or 3.3E by giving ten (10) days notice to the other Party and upon the expiry of such notice (unless 
		

		
			
		

		
			

		 

		

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			withdrawn) this Agreement will terminate and neither Farmor nor Farmee shall have any liability under this Agreement to the other save for its obligations under the Surviving Provisions which shall survive any such termination and save for any liability for breach of this Agreement prior to the date of any such termination.  In the event that termination occurs after the date of the letter of approval by the Mauritanian Minister of Petroleum, Energy and Mines approving the transfer of the Interests from Farmor to Farmee and/or designating Farmor as Operator of the Contract Area, Farmee will reassign the Interests to Farmor. Accordingly, as soon as practical following the notice pursuant to this Article 3.3C, the Parties will execute all documents necessary for such reassignment in substantially the same form as those pertaining to the original assignment and will cooperate in obtaining any required Government approval for such reassignment.
		

		
			 
		

		
			D. If the Government imposes conditions for approval of the assignment and transfer of the Interests or transition of Operatorship as contemplated hereunder materially in excess of those which are usually imposed in similar circumstances or if such approval contains unusual and onerous conditions which any affected Party is not willing to accept, then the affected Party shall have the right to terminate this Agreement on notice pursuant to Article 3.3C.
		

		
			 
		

		
			E. Notwithstanding any period of Force Majeure under Article 12 if either Party receives notice from the Government of a rejection of the Assignment, then either Party shall have the right to terminate this Agreement on notice pursuant to Article 3.3C.
		

		
			 
		

		
			3.4        Guarantees
		

		
			 
		

		
			A.  If permitted under the Contract (or otherwise agreed with the Mauritanian Minister of Petroleum, Energy and Mines, the Parties having used reasonable endeavours to procure such agreement) each Party shall provide the Mauritanian Minister of Petroleum, Energy and Mines with a guarantee for its Paying Interest share of the amount required under the Contract.  If not so permitted or agreed, Farmee, as the new Operator, shall replace the guarantee that Farmor previously provided to the Mauritanian Minister of Petroleum, Energy and Mines as Operator, and Farmor shall provide Farmee with a back-to-back guarantee for Farmor’s Paying Interest share under the JOA of the amount required under the Contract. The obligations of the Parties under this Article 3.4A shall take effect from the Operator Transfer Date.  From the Completion Date until the Operation Transfer Date, Farmee shall provide Farmor, if requested by Farmor, with a back-to-back parent company guarantee for Farmee’s Paying Interest share under the JOA of the amount required under the Contract. 
		

		
			 
		

		
			B.  Farmee shall provide Farmor with a parent company Guarantee from a creditworthy Affiliate for Farmee’s payment of the Consideration under this Agreement in a form mutually agreed by the Parties on or before the Completion Date, but in no event earlier than five (5) 
		

		
			
		

		
			

		 

		

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			Business Days after the signing of this Agreement. Farmor acknowledges that for the purposes of this Article 3.4B, BP Exploration Operating Company Limited is a creditworthy Affiliate. 
		

		
			 
		

		
			ARTICLE 4
		

		
			CONSIDERATION
		

		
			 
		

		
			4.1        Consideration
		

		
			 
		

		
			As consideration for the assignment and transfer of the Interests Farmee agrees to pay each of the:
		

		
			 
		

		
			(i)     Initial Payment;
		

		
			 
		

		
			(ii)    Interim Period Costs;
		

		
			 
		

		
			(iii)   Exploration & Appraisal Carry; 
		

		
			 
		

		
			(iv)   Development Carry; and
		

		
			 
		

		
			(v)    Success Fee,
		

		
			 
		

		
			(together the “Consideration”) subject to such payments becoming due and payable pursuant to the terms of this Agreement. 
		

		
			 
		

		
			4.2        Initial Payment
		

		
			 
		

		
			Within the five (5) days following the Completion Date, the sum of one hundred twenty million Dollars (US$ 120,000,000) (“Initial Payment”) shall be paid by Farmee to Farmor by electronic transfer in immediately available funds into Farmor’s Account.
		

		
			 
		

		
			4.3        Interim Period Costs
		

		
			 
		

		
			A. Farmor shall keep Farmee advised of the costs expended during the Interim Period.  Specifically, Farmor shall provide Farmee with a written statement of the amount of the Dollar balance resulting from the initial calculation of the Interim Period Costs (the “Monthly Interim Costs Completion Statement”) no later than thirty (30) days following the end of each calendar month during the Interim Period. Farmor and Farmee agree that if the information required for such timely preparation of a Monthly Interim Costs Completion Statement is not available, Farmor’s good faith estimate of such information shall be substituted.
		

		
			 
		

		
			B. For the avoidance of doubt, Farmee shall not be required to pay the Farmor Retained Liabilities and the Farmor Retained Liabilities shall not be included in the Monthly Interim Costs Completion Statement.
		

		
			 
		

		
			C. Within sixty (60) days after the Completion Date, or within such other period as may be agreed in writing by the Parties, Farmor shall provide Farmee with a written statement giving the final amount of the Interim Period Costs (the “Final Completion Statement”).  Upon Farmee request, Farmor shall provide Farmee with copies of reports, billing statements and 
		

		
			
		

		
			

		 

		

			13

		

 

		

			 

		

		

		
			correspondence and any other relevant documentation in the Farmor’s possession in support of the Final Completion Statement within ten (10) Business Days of such request, which shall be made no later than ten (10) Business Days from the date the Final Completion Statement is supplied to Farmee.  Farmee shall have the right, for a period of ninety (90) days following the date of delivery of the Final Completion Statement, to audit the Interim Period Costs on prior notice and during reasonable business hours in the Farmor’s offices; and Farmor shall provide such confirmation of the said Interim Period Costs as may be requested by Farmee in order to confirm the amount of Interim Period Costs. Farmor and Farmee shall endeavor in good faith to resolve any item of adjustment to the Interim Period Costs in the Final Completion Statement within one hundred twenty (120) days following the date of delivery of the Final Completion Statement.  The agreed amount of the Interim Period Costs shall be subject to no adjustment or amendment. In the event that the Farmor and Farmee are unable to agree upon any item of adjustment within the above period, such amount shall be determined in accordance with the procedures for settling disputed invoices under the JOA.
		

		
			 
		

		
			D. Farmor shall provide Farmee with copies of all operator reports, billing statements and correspondence and any other relevant documentation in support of the Monthly Interim Costs Completion Statement and the Final Completion Statement at the same time such Statements are supplied.
		

		
			 
		

		
			E. The Interim Period Costs shall be paid by Farmee to Farmor within five (5) Business Days of the delivery of the Final Completion Statement (pursuant to this Article 4.3) by electronic transfer in immediately available funds into Farmor’s Account, subject to Farmee’s audit rights under this Article 4.3 and without prejudice to Farmee’s subsequent rights of audit and dispute.
		

		
			 
		

		
			4.4        Exploration and Appraisal Carry
		

		
			 
		

		
			A. Subject to Article 4.4C, Farmee shall pay the JOA Paying Interest share (as set out in Article 2.4) of costs otherwise due and payable by Farmor after the Effective Date under the terms of the JOA pursuant to an approved work programme and budget thereunder in connection with all activities other than those activities covered under Article 4.5 (the “Exploration and Appraisal Carry”) until the earlier of:  (i) the date on which such costs paid by Farmee plus such costs paid by BP Senegal pursuant to exploration and appraisal carry under the Senegal Agreement exceed an amount equal in the aggregate to the sum of two hundred twenty one million Dollars ($US 221,000,000) carried by Farmee in the Contract Area and by BP Senegal in the Senegal Area under the Senegal Agreement, and (ii) 31 December 2022.
		

		
			 
		

		
			B. If the total amount of the Exploration and Appraisal Carry paid pursuant to Article 4.4A by Farmee in the aggregate in the Contract Area and the exploration and appraisal carry paid by BP Senegal under the Senegal Agreement) in the Senegal Area as of 31 December 2022 is less than two hundred twenty one million Dollars ($US 221,000,000) then the difference shall be paid no later than 1 February 2023 at Farmor’s election either by Farmee to Farmor by 
		

		
			
		

		
			

		 

		

			14

		

 

		

			 

		

		

		
			electronic transfer in immediately available funds into Farmor’s Account or alternatively a portion of the difference paid under the Senegal Agreement with the balance being paid to Farmor pursuant to this Article 4.4B. 
		

		
			 
		

		
			C. If satisfaction of the Conditions (as such term is defined in the Senegal Agreement) does not occur by the Longstop Date (as such term is defined in the Senegal Agreement) , then Farmee shall pay the Exploration and Appraisal Carry until the earlier of:  (i) the date on which such costs paid by Farmee exceed an amount equal in the aggregate to the sum of one hundred sixty-three million eight hundred thousand Dollars ($US 163,800,000) carried by Farmee in the Contract Area and (ii) 31 December 2022.
		

		
			 
		

		
			D. If the total amount of the Exploration and Appraisal Carry paid pursuant to Article 4.4C by Farmee in the aggregate in the Contract Area as of 31 December 2022 is less than one hundred sixty-three million eight hundred thousand Dollars ($US 163,800,000), then the difference shall be paid no later than 1 February 2023 at Farmor’s election by Farmee to Farmor by electronic transfer in immediately available funds into Farmor’s Account.
		

		
			 
		

		
			E.  In the event that the maximum amount payable by BP Senegal pursuant to clause 8.3(A)(i) of the Senegal Agreement is reduced in accordance with clause 8.7(A) of the Senegal Agreement, then the maximum amount payable by Farmee pursuant to Article 4.4A and 4.4B shall be reduced by an equivalent amount, provided that, if such adjustment under the Senegal Agreement is reversed pursuant to clause 8.7(D) of the Senegal Agreement, then such adjustment under this Article 4.4E shall also be reversed and an appropriate adjusting payment made.  
		

		
			 
		

		
			4.5        Development Carry
		

		
			 
		

		
			A.   Subject to Article 4.5B, Farmee shall pay the JOA Paying Interest share (as set out in Article 2.4) of costs, that are properly incurred and due and payable by Farmor after the Effective Date under the terms of the JOA pursuant to an approved work programme and budget thereunder in connection with achieving Commercial Production of Hydrocarbons (as defined under the Contract) from the Tortue Discovery Area as shown in Exhibit A, Part 1, including the Firm Work Programme (Development) in Exhibit J 2, or any alternative development in the Contract Area (the “Development Carry”) until the earlier of:  (i) the date on which such costs paid by the Farmee plus such costs paid by BP Senegal pursuant to the Senegal Agreement exceed the sum of five hundred thirty-three million four hundred thousand Dollars (US $ 533,400,000) or (ii) the date first Commercial Production from a development within an Exploitation Perimeter is achieved from the Contract Area and/or Senegal Area.
		

		
			 
		

		
			B.   If satisfaction of the Conditions (as such term is defined under the Senegal Agreement) does not occur by the Longstop Date (as such term is defined under the Senegal 
		

		
			
		

		
			

		 

		

			15

		

 

		

			 

		

		

		
			Agreement), then Farmee shall pay the Development Carry until the earlier of:  (i) the date on which such costs paid by the Farmee exceed the sum of three hundred fifty million Dollars (US $ 350,000,000) or (ii) the date first Commercial Production from a development within an Exploitation Perimeter is achieved from the Contract Area.
		

		
			 
		

		
			C.   For the avoidance of any doubt, there shall be no double-counting of amounts payable under Article 4.4 and Article 4.5 with the intention that Farmee shall not be required to pay more than once in respect of the same costs.
		

		
			 
		

		
			D.   In the event that the maximum amount payable by BP Senegal pursuant to clause 8.4(A)(i) of the Senegal Agreement is reduced in accordance with clause 8.7(A) of the Senegal Agreement, then the maximum amount payable by Farmee pursuant to Article 4.5A shall be reduced by an equivalent amount, provided that, if such adjustment under the Senegal Agreement is reversed pursuant to clause 8.7(D) of the Senegal Agreement, then such adjustment under this Article 4.5D shall also be reversed and an appropriate adjusting payment made.
		

		
			 
		

		
			4.6        Success Fee
		

		
			 
		

		
			A.      The Success Fee in respect of each Eligible Discovery shall be paid by Farmee, or Farmee’s Affiliate, to Farmor, or Farmor’s Affiliate, by electronic transfer in immediately available funds into Farmor’s Account no later than thirty (30) days following the end of each Quarter after the date Commercial Production exceeds twenty thousand Barrels per day (20mbd) from such Eligible Discovery and in respect of each Barrel (as defined under the Contract) of gross production of liquid Hydrocarbons (as defined under the Contract) in the natural state or obtained from Natural Gas by condensation or separation with an API gravity equal to or greater than 22.3°, but excluding LNG, produced from such Eligible Discovery in the immediately preceding Quarter.
		

		
			 
		

		
			B.      The obligation to pay a Success Fee in respect of production from each Eligible Discovery shall expire fifteen (15) years after the date of first production from such Eligible Discovery. 
		

		
			 
		

		
			C.      The obligation to pay a Success Fee in respect of production from all Eligible Discoveries shall expire on the date the aggregate gross cumulative production from all Eligible Discoveries and from all Eligible Discoveries (as such term is defined in the Senegal Agreement) exceeds one billion Barrels (1bnbbl).
		

		
			 
		

		
			D.      If an index is required to be used in the calculation of Brent, and such index ceases to be published, either Farmor or Farmee may request the adoption of such substitute index as most closely resembles the original index prior to it ceasing to be published or changing. If the Parties are unable to agree within sixty (60) days of such request, the matter shall be referred for determination under Article 11.2.
		

		
			 
		

		
			
		

		
			

		 

		

			16

		

 

		

			 

		

		

		
			E.      To the extent that a Success Fee is payable by BP Senegal under the Senegal Agreement and this Agreement in respect of the same discovery, there shall be no double-counting of amounts payable under the Senegal Agreement with amounts payable under this Agreement.
		

		
			 
		

		
			4.7        Other Costs and Cost Recovery 
		

		
			 
		

		
			A. Payment of any amount payable by Farmee on Farmor’s behalf under Article 4.4A or 4.5A shall be made by Farmee after the Completion Date and following notification by Operator to Farmee that such amount is due and payable under the terms of the JOA.
		

		
			 
		

		
			B.  Except to the extent Farmee becomes liable to pay any costs on behalf of Farmor under Article 4.4 or 4.5, on and from the Effective Date each Party shall assume and be liable for its Participating Interest share of costs incurred under the Contract or JOA pursuant to their terms, with Farmee’s share of such costs to be payable from the Completion Date.   Any costs for which the Farmee would otherwise be liable under the terms of the JOA between the Effective Date and the Completion Date shall be paid by Farmor on behalf of Farmee and shall be paid to Farmor after the Completion Date pursuant to Article 4.3.
		

		
			 
		

		
			C. Each Party shall be entitled to recover its Participating Interest share of costs incurred under the Contract upon commencement of production from the relevant portion of the Contract Area regardless of whether the costs were incurred before or after the Effective Date. For the avoidance of doubt, such Participating Interest share shall be the Participating Interest held at the time such costs become recoverable under the Contract after the commencement of production and to the extent that the either Party (the "Receiving Party") receives the Participating Interest share of costs that should otherwise have been paid to the other Party (the "Entitled Party"), the Receiving Party shall pay such sums to the Entitled Party within five (5) Business Days of receipt thereof.
		

		
			 
		

		
			ARTICLE 5
		

		
			OBLIGATIONS AND LIABILITIES
		

		
			 
		

		
			5.1        Acceptance of Prior Terms
		

		
			 
		

		
			Subject to the Farmor Warranties and applicable laws, Farmee hereby ratifies, confirms and accepts the terms of the Contract and the JOA.
		

		
			 
		

		
			5.2        Firm Work Programme (Exploration and Appraisal) and Firm Work Programme (Development)
		

		
			 
		

		
			Notwithstanding articles 5.9, 6.1(D) and 6.1(E) of the JOA, the Parties agree to participate in the Firm Work Programme (Exploration and Appraisal) and Firm Work Programme (Development), unless otherwise mutually agreed.  The Parties will support an amendment to 
		

		
			
		

		
			

		 

		

			17

		

 

		

			 

		

		

		
			the Work Program and Budget approved under the JOA to accomplish the Firm Work Programme (Exploration and Appraisal) and Firm Work Programme (Development). 
		

		
			 
		

		
			5.4        Obligations in Respect of Tortue Development
		

		
			 
		

		
			Farmee supports the Tortue development concept for phase 1 proposed and supported by Farmor and an indicative work program aimed to reach a final investment decision ("FID") by the end of 2017.  Notwithstanding the foregoing, in Farmee’s view the following key decisions for the first phase development of Tortue require study or screening for the potential full field development ("FFD") solution: (i) location of breakwater and pre-treatment facility; (ii) scope of phase 1 pre-treatment facility; (iii) breakwater configuration capable of expansion; and (iv) LNG cooling solution capable of expansion.  These key decisions will be informed by the following key activities: (i) metocean survey/ report results; (ii) G&G site survey results at breakwater and Tortue sites; (iii) agreement with a third party contractor for liquefaction services; (iv) FFD concept screening to allow expansion of LNG facilities; (v) FFD concept process safety, environmental studies and operations philosophy; and (vi) FFD flow assurance and water breakthrough risk mitigation studies.  Farmee proposes (and Farmor agrees) that these key decisions and their supporting studies and surveys are completed by the end of first quarter 2017 so they are able to feed into a prompt FID decision. For the avoidance of doubt, each Party shall have complete discretion (to be exercised as it sees fit) in how it exercises its vote or decision under Interest Documents in respect of the FID decision.
		

		
			 
		

		
			5.5        Operatorship
		

		
			 
		

		
			A.  Subject to the Contract and Laws/Regulations, the Parties shall support and vote and campaign in favor of the following to be effective on the Operator Transfer Date:
		

		
			 
		

		
			(i)      Farmee to assume the role of Operator in respect of all evaluation/appraisal (including preparation of the appraisal plan), development, exploitation and production activities under the Contract upon the Completion Date;
		

		
			 
		

		
			(ii)     Farmee to perform the role of operator in respect of all Exploitation Perimeters (as defined under the Contract) in the Contract Area, including any unit which includes any Exploitation Perimeter in the Contract Area; and
		

		
			 
		

		
			(iii)    Farmor to perform the role of technical operator in respect of all exploration activities, including exploration drilling, under the Contract as set out in the JOA Novation.
		

		
			 
		

		
			B.  The provisions in Article 5.5A shall be reflected in the JOA Novation attached as Exhibit D.
		

		
			 
		

		
			C.  The agreed arrangements for the safe, smooth and efficient transition of the role of operator 
		

		
			
		

		
			

		 

		

			18

		

 

		

			 

		

		

		
			under the Contract and JOA are contained in Exhibit K.
		

		
			 
		

		
			5.6        Option to Sell LNG
		

		
			 
		

		
			A.  From the Completion Date, Farmee, as Operator, offers to work with Farmor and the other parties to the Interest Documents in a possible Tortue development, to develop a LNG marketing strategy and to use its experience and relationships in the market to jointly sell the LNG produced from the Tortue development.  Farmee is an experienced LNG industry player and already undertakes this role as the operator of other LNG projects also governed by a production sharing contract. 
		

		
			 
		

		
			B. Additionally, Farmee’s LNG trading business will offer to purchase some or all of the LNG produced from the Tortue development on a free on board “FoB” basis through a long term LNG purchase agreement.  Farmee’s LNG trading business believe the natural market for this LNG is in Europe and would plan to offer to purchase on the basis of delivery to the European market. Farmee’s LNG trading business has industry leading trading capability and track record, and will attempt to divert purchased LNG cargos to other more attractive markets outside of Europe where possible, the benefits of any upside value achieved (net of shipping and regasification costs) will be shared equally between buyer and seller.
		

		
			 
		

		
			C.  The foregoing is subject to applicable law joint selling limitations.
		

		
			 
		

		
			5.7        The provisions of this Article 5 shall only become effective upon the Completion Date.
		

		
			 
		

		
			ARTICLE 6
		

		
			INTERIM PERIOD OBLIGATIONS
		

		
			 
		

		
			6.1        Farmor Obligations
		

		
			 
		

		
			During the Interim Period, Farmor shall: 
		

		
			 
		

		
			(i)      having notified Farmee in advance of the subject matter thereof, consult with Farmee in relation to any material decision (including any voting matter under the Interest Documents) in connection with the Interests (including decisions relating to the location and timing of any exploration wells), and take due consideration of Farmee’s representations in respect thereof;
		

		
			 
		

		
			(ii)     consult with Farmee in relation to the negotiation of a term sheet and any definitive agreements with a third party liquefaction contractor, and take due consideration of Farmee’s representations in respect thereof.  Additionally Farmor will take all steps within its control to afford Farmee the opportunity to attend and participate in such negotiations;
		

		
			 
		

		
			(iii)    not incur, commit to incur or approve or amend any work programme, budget, expenditure or capital commitment  relating to the Interests involving expenditure or agree to do any of the foregoing, in any case other than:
		

		
			 
		

		
			(a)   any expenditure permitted and approved under the JOA and disclosed to Farmee at the date of this Agreement; 
		

		
			
		

		
			

		 

		

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			(b)   any expenditure required to carry out the Firm Work Programme (Exploration and Appraisal);
		

		
			 
		

		
			(c)   any expenditure required to carry out the Firm Work Programme (Development);
		

		
			 
		

		
			(d)   any such expenditure in respect of which Farmee has given its prior approval (not to be unreasonably withheld or delayed)
		

		
			 
		

		
			(e)   any expenditure necessitated by any emergency (in which case Farmor shall consult with Farmee to the extent practicable in the circumstances);
		

		
			 
		

		
			(iii) conduct operations regarding the Interests in the ordinary and usual course, past practice and with the intention that the same be protected and maintained in accordance with Good Industry Practice and all applicable laws;
		

		
			 
		

		
			(iv) not (by act or omission) breach any of the provisions of the Contract or JOA or new agreements concluded in the Interim Period in accordance with this Article (and notify Farmee in a timely manner of any facts or circumstances of which it is aware or becomes aware which indicate that there has been a breach of any of the Contract or JOA by any other party or that such a breach by Farmor has occurred);
		

		
			 
		

		
			(v) take all steps within its control (and Farmor shall procure that its Affiliates take all steps within their control) to maintain and renew all governmental licences, permits, authorizations, consents and permissions necessary to own and operate the Interests;
		

		
			 
		

		
			(vi) not amend, terminate or replace any of the Contract, JOA or new agreements concluded in the Interim Period in accordance with this Article or waive or surrender any right or grant any consent thereunder, or agree to do any of the foregoing, without the written consent of Farmee (such consent shall not be unreasonably withheld or delayed);
		

		
			 
		

		
			(vii) not, without Farmee’s written consent (not to be unreasonably withheld or delayed), create any Encumbrance in relation to, sell, lease or otherwise dispose of all or any part of, the Interests, or purport to or agree to do any of the same;
		

		
			 
		

		
			(viii) in respect of the Interests, not enter into or become a party to any new licences, operating agreements (other than the JOA for operations in the Block C6 portion of the Contract Area on terms substantially similar to the JOAs for operations in the Block C8, C12 and C13 portions of the Contract Area), farm-in or farm-out agreements, unitization agreements, liquefaction agreements, charterparties, development agreement or any other agreement or undertaking or any of them (by whatever name called) or trade, relinquish, surrender, sell, assign, transfer or amend the Interests (or agree to do any of the foregoing in the future) without the prior written approval of Farmee (such approval not to be unreasonably withheld or delayed); and
		

		
			 
		

		
			(vii)  keep Farmee informed in a timely manner of all material matters in relation to the Interests,
		

		
			 
		

		
			(viii) to the maximum extent permitted by law and confidentiality obligations under agreements, provide Farmee with copies of all communications with the Government, 
		

		
			
		

		
			

		 

		

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			Mauritanian Minister of Petroleum, Energy and Mines and SMHPM in relation to the Interest Documents, 
		

		
			 
		

		
			and Farmor undertakes to notify Farmee in writing promptly if it or any of its Affiliates becomes aware of any circumstance arising after the date of this Agreement which is or is reasonably likely to result in a breach of any of the covenants in this Article 6.1.
		

		
			 
		

		
			ARTICLE 7
		

		
			WARRANTIES
		

		
			 
		

		
			7.1        Farmor’s Representations and Warranties
		

		
			 
		

		
			Subject to the provisions of this Article 7, and save as disclosed under the terms of the Farmor Disclosure Letter, Farmor warrants and undertakes to Farmee as at the date of this Agreement that the Farmor Warranties and the warranty at paragraph 1 of Exhibit M are true and accurate in all respects, and the Farmor Warranties and the warranty at paragraph 1 of Exhibit M shall be deemed to be repeated at the Completion Date.
		

		
			 
		

		
			7.2        Farmee’s Representations and Warranties
		

		
			 
		

		
			Farmee warrants and undertakes to Farmor as at the date of this Agreement that the Farmee Warranties and the warranty at paragraph 1 of Exhibit M are true and accurate in all respects, and the Farmee Warranties and the warranty at paragraph 1 of Exhibit M shall be deemed to be repeated at the Completion Date.
		

		
			 
		

		
			7.3        Breach of Warranty
		

		
			 
		

		
			A. Each of the Parties agrees to indemnify and hold the other Party harmless against any costs, charges, expenses, duties, losses, liabilities and obligations which such other Party pays, suffers or is liable for at any time which arise out of or in connection with the breach by the indemnifying Party of, in the case of the Farmor, any of the Farmor Warranties, or, in the case of the Farmee, any of the Farmee Warranties.
		

		
			 
		

		
			B. Farmor shall have no liability in respect of any claim made by Farmee for a breach of the Farmor Warranties, and Farmee shall have no liability in respect of any claim made by Farmor for a breach of Farmee Warranties, unless such claim:
		

		
			 
		

		
			(i)   equals or exceeds one million Dollars (US$1,000,000); or
		

		
			 
		

		
			(ii)  when aggregated with all other valid claims the Party concerned may have against the other Party that are each of a value under one million Dollars (US$1,000,000), would mean such aggregate equals or exceeds one million Dollars (US$1,000,000),
		

		
			 
		

		
			and in either case the Party concerned shall be entitled to recover the whole amount of the 
		

		
			
		

		
			

		 

		

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			relevant claim(s) not only the amount the relevant claim(s) (alone or aggregated) exceed one million Dollars (US$1,000,000).
		

		
			 
		

		
			C.  The Farmor shall not be liable in respect of a claim for breach of a Farmor Warranty set out in paragraphs 15.1 or 15.2 of Exhibit H or the warranty at paragraph 1 of Exhibit M to the extent that, as at the date of this Agreement, the Farmee was actually aware: (i) of the facts or circumstances giving rise to the claim for breach of such Farmor Warranty or the warranty set out at paragraph 1 of Exhibit M; and (ii) that such facts or circumstances would give rise to a claim for breach of such Farmor Warranty or the warranty at paragraph 1 of Exhibit M.
		

		
			 
		

		
			7.4        Undertakings in relation to breaches
		

		
			 
		

		
			A. Farmor undertakes that:
		

		
			 
		

		
			(i)      it shall not at any time before the Completion Date do (or permit or suffer to subsist or be done) any act or thing which would constitute a breach of any of the Farmor Warranties or the warranty at paragraph 1 of Exhibit M or which would make any of the Farmor Warranties untrue or misleading at any time; and
		

		
			 
		

		
			(ii)      upon becoming aware before the Completion Date of the actual or impending occurrence or non-occurrence of any matter, event or circumstance (including any omission to act) which:
		

		
			 
		

		
			(a)    would or might reasonably be expected to cause or constitute a breach of any Farmor Warranty or the warranty at paragraph 1 of Exhibit M; 
		

		
			 
		

		
			(b)    would or might reasonably be expected to make any of the Farmor Warranties or the warranty at paragraph 1 of Exhibit M untrue or misleading; 
		

		
			 
		

		
			(c)    would have caused or constituted a breach of any Farmor Warranty or the warranty at paragraph 1 of Exhibit M had it been known to Farmor before the date of this Agreement; or
		

		
			 
		

		
			(d)    would or might reasonably be expected to adversely affect (or has so affected) the Interests,
		

		
			 
		

		
			it will immediately give Farmee notice of such matter, event or circumstance with sufficient details to enable Farmee accurately to assess its impact. 
		

		
			 
		

		
			B. Farmee undertakes that:
		

		
			 
		

		
			(i)      it shall not at any time before the Completion Date do (or permit or suffer to subsist or be done) any act or thing which would constitute a breach of any of the Farmee Warranties or the warranty at paragraph 1 of Exhibit M or which would make any of the Farmee Warranties or the warranty at paragraph 1 of Exhibit M untrue or misleading at any time; and
		

		
			 
		

		
			(ii)     upon becoming aware before the Completion Date of the actual or impending occurrence or non-occurrence of any matter, event or circumstance (including any omission to act) which:
		

		
			 
		

		
			
		

		
			

		 

		

			22

		

 

		

			 

		

		

		
			(a)    would or might reasonably be expected to cause or constitute a breach of any Farmee Warranty or the warranty at paragraph 1 of Exhibit M; 
		

		
			 
		

		
			(b)    would or might reasonably be expected to make any of the Farmee Warranties or the warranty at paragraph 1 of Exhibit M untrue or misleading; 
		

		
			 
		

		
			(c)    would have caused or constituted a breach of any Farmee Warranty or the warranty at paragraph 1 of Exhibit M had it been known to Farmee before the date of this Agreement; or
		

		
			 
		

		
			(d)    would or might reasonably be expected to adversely affect (or has so affected) the Interests,
		

		
			 
		

		
			it will immediately give Farmor notice of such matter, event or circumstance with sufficient details to enable Farmor accurately to assess its impact.  
		

		
			 
		

		
			7.5        Disclaimer of Other Representations and Warranties
		

		
			 
		

		
			A. Except for the Farmor Warranties and the warranty in paragraph 1 of Exhibit M, Farmor makes no, and disclaims any, warranty or representation of any kind, either express, implied, statutory, or otherwise, including, the accuracy or completeness of any data, reports, records, projections, information, or materials now, heretofore, or hereafter furnished or made available to Farmee in connection with this Agreement.
		

		
			 
		

		
			B. Except for the Farmee Warranties and the warranty in paragraph 1 of Exhibit M, Farmee makes no, and disclaims any, warranty or representation of any kind, either express, implied, statutory, or otherwise, including, without limitation, the accuracy or completeness of any data, reports, records, projections, information, or materials now, heretofore, or hereafter furnished or made available to Farmor in connection with this Agreement.
		

		
			 
		

		
			7.6        Fraud and Wilful Concealment
		

		
			 
		

		
			Notwithstanding anything to the contrary herein, nothing in this Agreement shall limit any Party’s liability for fraud or willful concealment.
		

		
			 
		

		
			7.7        Set-off
		

		
			 
		

		
			Farmee is hereby authorized and entitled at any time and from time to time, to the fullest extent permitted by law, to withhold and set-off from any payment otherwise due to be made to Farmor pursuant to Articles 4.3 to 4.6 of this Agreement or from any payment due to be made by BP Senegal pursuant to clauses 6 to 8 of the Senegal Agreement an amount equal to the amount owing pursuant to any and all Farmor Payment Failures. 
		

		
			 
		

		
			
		

		
			

		 

		

			23

		

 

		

			 

		

		

		
			ARTICLE 8
		

		
			TAX
		

		
			 
		

		
			8.1        Tax Obligations
		

		
			 
		

		
			Each Party shall be responsible for reporting and discharging its own Tax measured by the profit, gain or income of the Party and the satisfaction of such Party’s share of all contract obligations under the Contract and under this Agreement.  Each Party shall protect, defend and indemnify each other Party from any and all loss, cost or liability arising from the indemnifying Party’s failure to report and discharge such taxes or satisfy such obligations.  The Parties intend that all income under the Interest Documents will be allocated by the Government tax authorities to the Parties based on the share of income actually received by each Party.  The Parties intend that all Tax benefits (including deductions, depreciation, credits and capitalization) with respect to joint operating expenditures (whether incurred by carry or otherwise) made by the Parties hereunder or under the Interest Documents will be allocated by the Government tax authorities to the Parties based on their respective JOA Participating Interest share of each such Tax item.  If such allocation is not accomplished due to the application of the Laws/Regulations or other Government action, the Parties shall attempt to adopt mutually agreeable arrangements that will allow the Parties to achieve the financial results intended.  Operator shall provide each Party, in a timely manner and at such Party’s sole expense, with such information with respect to Joint Operations as such Party may reasonably request for preparation of its tax returns or responding to any audit or other tax proceeding.
		

		
			 
		

		
			8.2        Secondary tax liabilities
		

		
			 
		

		
			Each Party shall indemnify the other Party in respect of Tax demanded from the other Party which is the primary liability of the first mentioned Party.
		

		
			 
		

		
			8.3        United States Tax Election
		

		
			 
		

		
			A. If, for United States federal income tax purposes, this Agreement and the operations under this Agreement are regarded as a partnership and if the Parties have not agreed to form a tax partnership, each Party elects to be excluded from the application of all of the provisions of Subchapter “K”, Chapter 1, Subtitle “A” of the United States Internal Revenue Code of 1986, as amended (the “Code”), to the extent permitted and authorized by Section 761(a) of the Code and the regulations promulgated under the Code.  Operator, if it is a U.S. Party, is authorized and directed to execute and file for each Party such evidence of this election as may be required by the Internal Revenue Service, including all of the returns, statements, and data required by United States Treasury Regulations Sections 1.761-2 and 1.6031(a)-1(b)(5) and shall provide a copy thereof to each U.S. Party.  However, if Operator is not a U.S. Party, the Party who holds 
		

		
			
		

		
			

		 

		

			24

		

 

		

			 

		

		

		
			the greatest Participating Interest among the U.S. Parties shall fulfill the obligations of Operator under this Article.  Should there be any requirement that any Party give further evidence of this election, each Party shall execute such documents and furnish such other evidence as may be required by the Internal Revenue Service or as may be necessary to evidence this election.
		

		
			 
		

		
			B. No US Party shall give any notice or take any other action inconsistent with the foregoing election.  If any income tax laws of any state or other political subdivision of the United States or any future income tax laws of the United States or any such political subdivision contain provisions similar to those in Subchapter “K”, Chapter 1, Subtitle “A” of the Code, under which an election similar to that provided by Section 761(a) of the Code is permitted, each Party shall make such election as may be permitted or required by such laws.  In making the foregoing election or elections, each U.S. Party states that the income derived by it from operations under this Agreement can be adequately determined without the computation of partnership taxable income. 
		

		
			 
		

		
			C.  Unless approved by every Non-U.S. Party, no activity shall be conducted under this Agreement that would cause any Non-U.S. Party to be deemed to be engaged in a trade or business within the United States under United States income tax laws and regulations.
		

		
			 
		

		
			8.4        Capital Gains Tax
		

		
			 
		

		
			Farmor shall pay, and shall indemnify and hold Farmee harmless against any liability for any capital gains tax (or equivalent tax) which may be, or become, payable in connection with the sale, assignment or transfer of the Interests and in respect of any costs (including reasonable legal costs), expenses, loss or damage occasioned by its failure to pay, or any delay in paying, such tax.
		

		
			 
		

		
			8.5        Transfer Taxes
		

		
			 
		

		
			Farmee shall be responsible for payment in a timely fashion of any and all transfer taxes, such as stamp duties and taxes (or equivalent duties and taxes) (including interest, penalties and/or fines thereof) (the “Transfer Taxes”) payable on or in respect of the assignment and transfer of the Interests including the execution and enforcement of this Agreement and shall indemnify and hold Farmor harmless in respect of any costs (including reasonable legal costs), expenses, loss or damage occasioned by its failure to pay, or any delay in paying, such Transfer Taxes.
		

		
			 
		

		
			
		

		
			

		 

		

			25

		

 

		

			 

		

		

		
			ARTICLE 9
		

		
			CONFIDENTIALITY
		

		
			 
		

		
			9.1        Except as otherwise provided in the Contract and the JOA, each Party agrees that the existence of and all terms of this Agreement and all information disclosed under this Agreement by either Party (except information in the public domain or lawfully in possession of a Party prior to the date of this Agreement) shall be considered confidential information and shall not be disclosed to any other person or entity without the prior written consent of the other Party. This obligation of confidentiality shall remain in force during the term of the Contract and for a period of three (3) years thereafter. Notwithstanding the foregoing, confidential information may be disclosed without consent and without violating the obligations contained in this Article 9 in the following circumstances:
		

		
			 
		

		
			(i)         to an Affiliate provided the Affiliate is bound to the provisions of this Article 9 and the Party disclosing is responsible for the violation of an Affiliate; 
		

		
			 
		

		
			(ii)        to a governmental agency or other entity when required by the Contract;
		

		
			 
		

		
			(iii)       to the extent such information is required to be furnished in compliance with the applicable Laws/Regulations, or pursuant to any legal proceedings or because of any order of any court binding upon a Party; 
		

		
			 
		

		
			(iv)       to attorneys engaged, or proposed to be engaged, by any Party where disclosure of such information is essential to such attorneys' work for such Party and such attorneys are bound by an obligation of confidentiality;
		

		
			 
		

		
			(v)        to contractors and consultants engaged, or proposed to be engaged, by any Party where disclosure of such information is essential to such contractor’s or consultant’s work for such Party;
		

		
			 
		

		
			(vi)       to a bank or other financial institution to the extent appropriate to a Party arranging for funding;
		

		
			 
		

		
			(vii)      to the extent such information must be disclosed pursuant to any rules or requirements of any government or stock exchange having jurisdiction over such Party, or its Affiliates; provided that such Party shall comply with the requirements of Article 14.10 hereunder;
		

		
			 
		

		
			(viii)     to its respective employees, subject to each Party taking sufficient precautions to ensure such information is kept confidential; 
		

		
			 
		

		
			(ix)       to the other parties to the Contract and the JOA and the Government solely to the extent as may be required in connection with the Preferential Rights to satisfy the Conditions Precedent; and
		

		
			 
		

		
			(x)        to the other parties, including the Government of the Republic of Senegal, to the Hydrocarbon Exploration and Production Sharing Contract granted by the Republic of Senegal dated January 17, 2012 covering the Saint Louis Offshore Profond Block, and the Hydrocarbon Exploration and Production Sharing Contract granted by the Republic of Senegal dated January 17, 2012 covering the Cayar Offshore Profond Block solely 
		

		
			
		

		
			

		 

		

			26

		

 

		

			 

		

		

		
			to the extent as may be required to satisfy the conditions precedent specified in that certain Farmout Agreement concerning the Saint-Louis Offshore Profond Block and the Cayar Offshore Profond Block, Offshore Senegal between Kosmos Energy Senegal and Farmee of even date with this Agreement.  
		

		
			 
		

		
			9.2        Disclosure as pursuant to Articles 9.1(v) and (vi) shall not be made unless prior to such disclosure the disclosing Party has obtained a written undertaking from the recipient party to keep the information strictly confidential for at least as long as the period set out above and to use the information for the sole purpose described in Articles 9.1(v) and (vi), whichever is applicable, with respect to the disclosing Party.
		

		
			 
		

		
			ARTICLE 10
		

		
			NOTICES 
		

		
			 
		

		
			A. All notices authorized or required between the Parties by any of the provisions of this Agreement shall be:
		

		
			 
		

		
			(i) in writing (in English) and addressed to the relevant Party as set out in this Article 10.A (unless such party gives notice in writing of a change of address or addressee as set out below);
		

		
			 
		

		
			(ii) must be signed or in the case of a facsimile, appear to have been signed, by an authorized representative of the sender;
		

		
			 
		

		
			(iii) regarded as given and received:
		

		
			 
		

		
			(a) if delivered by hand or by express courier, when delivered to the addressee; or
		

		
			 
		

		
			(b) if sent by post, three Business Days from and including the date of postage; or
		

		
			 
		

		
			(c) if sent by facsimile transmission, when the transmission is successfully transmitted as reported by the sender’s machine,
		

		
			 
		

		
			but if the delivery or receipt is on a day which is not a Business Day or is after 4.00pm (addressee’s time) it is regarded as received at 9:00am on the following Business Day.  E-mail notification of any notices delivered pursuant to this Article will also be provided for information only.
		

		
			 
		

		
			B. A facsimile transmission is not regarded as successfully transmitted if the addressee telephones the sender within four (4) hours after the transmission is received or regarded as received under Article 10.A(iii)(c) and informs the sender that it is not legible or incomplete.  E-mail addresses are provided for convenience only.
		

		
			 
		

		
			FARMOR:
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Kosmos Energy Mauritania

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						c/o Wilmington Trust (Cayman Islands)

					
					
						c/o Kosmos Energy, LLC

				
	
					
						4th Floor, Century Yard

					
					
						8176 Park Lane, Suite 500

				

		
			 
		

		
			
		

		
			

		 

		

			27

		

 

		

			 

		

		

		
			 
		

			
					
						Cricket Square, Hutchins Drive

					
					
						Dallas, TX  75231 USA

				
	
					
						Elgin Avenue, George Town

					
					
						 

				
	
					
						Grand Cayman KY1-1209

					
					
						E-mail: kosmosgeneralcounsel@kosmosenergy.com

				
	
					
						 

					
					
						Fax:  +1 214 445-9705

				
	
					
						E-mail: MauritaniaNotifications

					
					
						Attn.:  General Counsel

				
	
					
						@kosmosenergy.com

					
					
						 

				
	
					
						Fax: +1 214 445-9705

					
					
						 

				
	
					
						Attn.:  Jesse Noah, Vice President,

					
					
						 

				
	
					
						Exploration, North Africa

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						FARMEE:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						BP Exploration (West Africa) Limited

					
					
						 

				
	
					
						Chertsey Road

					
					
						 

				
	
					
						Sunbury-on-Thames

					
					
						 

				
	
					
						Middlesex

					
					
						 

				
	
					
						TW16 7BP

					
					
						 

				
	
					
						United Kingdom

					
					
						 

				
	
					
						E-mail: andy.lane@uk.bp.com

					
					
						 

				
	
					
						Attn.:  Andy C. Lane, Head of Business Development, Gas Value Chain.

					
					
						 

				

		
			 
		

		
			ARTICLE 11
		

		
			LAW AND DISPUTE RESOLUTION
		

		
			 
		

		
			 
		

		
			11.1       Governing Law
		

		
			 
		

		
			This Agreement, and any non-contractual rights or obligations arising out of or in connection with it or its subject matter, shall be governed by and construed in accordance with the laws of England and Wales, excluding any choice of law rules which would refer the matter to the laws of another jurisdiction.
		

		
			 
		

		
			11.2       Dispute Resolution
		

		
			 
		

		
			A. Except as may be otherwise agreed in the JOA, any and all claims, demands, causes of action, disputes, controversies and other matters in question arising out of or relating to this Agreement, including any question regarding its breach, existence, validity or termination, which the Parties do not resolve amicably within a period of twenty (20) days from the giving of a notice by one Party to the other Party notifying the dispute, shall be resolved by three arbitrators in accordance with the Arbitration Rules of the International Chamber of Commerce. Each Party shall appoint one arbitrator within thirty (30) days of the filing of the arbitration, and the two arbitrators so appointed shall select the presiding arbitrator within thirty (30) days after the latter of the two arbitrators have been appointed. If a Party fails to appoint its Party-appointed arbitrator or if the two Party-appointed arbitrators cannot reach an agreement on the presiding arbitrator within the applicable time period, then the remainder of the three arbitrators not yet appointed shall be appointed in accordance with said Rules. The seat of arbitration shall
		

		
			
		

		
			

		 

		

			28

		

 

		

			 

		

		

		
			be London, England.  The proceedings shall be in the English language.  The resulting arbitral award shall be final and binding, and judgment upon such award may be entered in any court having jurisdiction thereof.  A dispute shall be deemed to have arisen when either Party notifies the other Party in writing to that effect.  Any monetary award issued by the arbitrator shall be payable in United States Dollars.  It is expressly agreed that the arbitrators shall have no authority to award special, indirect, consequential, exemplary or punitive damages.  The Parties waive any right to refer any question of law and any right of appeal on the law and/or merits to any court.
		

		
			 
		

		
			B. All discussions, negotiations and arbitration conducted between the Parties under this Article 11.2 (including a settlement resulting from negotiation or an arbitral award, documents exchanged or produced during an arbitration proceeding, and memorials, briefs or other documents prepared for the arbitration) are confidential and may not be disclosed by the Parties, their employees, officers, directors, counsel, consultants, and expert witnesses, except (under Article 9) to the extent necessary to enforce this Article 11 or any arbitration award, to enforce other rights of a Party, or as required by law or stock exchange; provided, however, that breach of this confidentiality provision shall not void any settlement or award.
		

		
			 
		

		
			ARTICLE 12
		

		
			FORCE MAJEURE
		

		
			 
		

		
			If as a result of Force Majeure, any Party is rendered unable, wholly or in part, to carry out its rights or obligations under this Agreement, other than the obligation to pay any amounts due, then the rights or obligations of the Party giving such notice, so far as and to the extent that the rights or obligations are affected by such Force Majeure, shall be suspended during the continuance of any inability so caused and for such reasonable period thereafter as may be necessary for the Party to put itself in the same position that it occupied prior to the Force Majeure, but for no longer period.  The Party claiming Force Majeure shall notify the other Parties of the Force Majeure within a reasonable time after the occurrence of the facts relied on and shall keep all Parties informed of all significant developments. Such notice shall give reasonably full particulars of the Force Majeure and also estimate the period of time which the Party will probably require to remedy the Force Majeure.  The affected Party shall use all reasonable diligence to remove or overcome the Force Majeure situation as quickly as possible in a commercially reasonable manner but shall not be obligated to settle any labor dispute except on terms acceptable to it. All such disputes shall be handled within the sole discretion of the affected Party.  For the purposes of this Agreement, “Force Majeure” shall have the same meaning as is set out in the Contract.
		

		
			 
		

		
			
		

		
			

		 

		

			29

		

 

		

			 

		

		

		
			ARTICLE 13
		

		
			DEFAULT
		

		
			 
		

		
			If Farmee fails to pay any payment (or part thereof) that becomes due and payable pursuant to the terms of this Agreement by the due date for payment it shall pay interest on such sum for the period from and including the due date up to the date of actual payment at the rate per annum which is the aggregate of the one (1) month term, London Interbank Offered Rate (LIBOR rate) for U.S. dollar deposits (as published in London by the Financial Times or if not published, then by The Wall Street Journal) and five (5) percentage points. The interest will accrue from day to day on the basis of the actual number of days elapsed and a 365-day year and shall be payable and compounded monthly.  If the aforesaid rate is contrary to any applicable usury law, the rate of interest to be charged shall be the maximum rate permitted by such applicable law. 
		

		
			 
		

		
			ARTICLE 14
GENERAL PROVISIONS
		

		
			 
		

		
			14.1      Relationship of Parties
		

		
			 
		

		
			The rights, duties, obligations and liabilities of the Parties under this Agreement shall be individual, not joint or collective.  It is not the intention of the Parties to create, nor shall this Agreement be deemed or construed to create, a mining or other partnership, joint venture or association or a trust.  This Agreement shall not be deemed or construed to authorize any Party to act as an agent, servant or employee for any other Party for any purpose whatsoever except as explicitly set forth in this Agreement.  In their relations with each other under this Agreement, the Parties shall not be considered fiduciaries except as expressly provided in this Agreement.
		

		
			 
		

		
			14.2      Further Assurances
		

		
			 
		

		
			Each of the Parties shall do all such acts and execute and deliver all such documents as shall be reasonably required in order to fully perform and carry out the terms of this Agreement.
		

		
			 
		

		
			14.3      Waiver
		

		
			 
		

		
			No waiver by any Party of any one or more defaults by another Party in the performance of any provision of this Agreement shall operate or be construed as a waiver of any future default or defaults by the same Party whether of a like or of a different character.  Except as expressly provided in this Agreement, no Party shall be deemed to have waived, released or modified any of its right under this Agreement unless such Party has expressly stated, in writing, that it does waive, release or modify such right.
		

		
			 
		

		
			
		

		
			

		 

		

			30

		

 

		

			 

		

		

		
			14.4       Joint Preparation
		

		
			 
		

		
			Each provision of this Agreement shall be construed as though all Parties participated equally in the drafting of the same. Consequently, the Parties acknowledge and agree that any rule of construction that a document is to be construed against the drafting party shall not be applicable to this Agreement.
		

		
			 
		

		
			14.5       Severance of Invalid Provisions
		

		
			 
		

		
			If and for so long as any provision of this Agreement shall be deemed to be judged invalid for any reason whatsoever, such invalidity shall not affect the validity or operation of any other provision of this Agreement except only so far as shall be necessary to give effect to the construction of such invalidity, and any such invalid provision shall be deemed severed from this Agreement without affecting the validity of the balance of this Agreement.
		

		
			 
		

		
			14.6       Modifications and Assignment
		

		
			 
		

		
			(i) Subject to Article 14.6(ii) and Article 14.6(iii), there shall be no modification or assignment of this Agreement or the rights and obligations under it except by written consent of both Parties.
		

		
			 
		

		
			(ii) Farmee shall be entitled to assign, novate or transfer its rights and obligations under this Agreement to a Wholly-Owned Affiliate of Farmee and Farmor shall sign any documentation reasonably required in order to effect such assignment, novation or transfer.
		

		
			 
		

		
			(iii) Farmor shall be entitled to assign, novate or transfer its rights and obligations under this Agreement to a Wholly-Owned Affiliate of Farmor, provided that any assignment, novation or transfer of any of Farmor's obligations under this Agreement shall be subject to and conditional upon the Farmor having first delivered to the Farmee a legally binding and enforceable guarantee from the ultimate parent company of the Farmor and the Wholly-Owned Affiliate (in a form reasonably acceptable to Farmee) guaranteeing the performance and payment of all obligations and liabilities of the Farmor under this Agreement. Subject to satisfaction of the requirements of this Article 14.6(iii), Farmee shall sign any documentation reasonably required in order to effect such assignment, novation or transfer. In the event that a Farmor parent guarantee is delivered to Farmee in accordance with this Article 14.6(iii), the obligations of Farmor under Article 7.7 of this Agreement shall cease to apply from the effective date of such Farmor parent guarantee.
		

		
			 
		

		
			14.7     Priority of Agreement
		

		
			 
		

		
			In the event of any conflict between the provisions of the main body of this Agreement and its Exhibits, the provisions of the main body of the Agreement shall prevail. In the event of any 
		

		
			
		

		
			

		 

		

			31

		

 

		

			 

		

		

		
			conflict between this Agreement and the JOA, this Agreement shall prevail. In the event of any conflict between this Agreement and the Contract, this Agreement shall prevail unless such would be in violation of the Laws/Regulations of the Islamic Republic of Mauritania or the terms of the Contract.
		

		
			 
		

		
			14.8       Interpretation
		

		
			 
		

		
			A. Headings: The topical headings used in this Agreement are for convenience only and shall not be construed as having any substantive significance or as indicating that all of the provisions of this Agreement relating to any topic are to be found in any particular Article.
		

		
			 
		

		
			B. Singular and Plural: Reference to the singular includes a reference to the plural and vice versa.
		

		
			 
		

		
			C. Gender: Reference to any gender includes a reference to all other genders.
		

		
			 
		

		
			D. Article: Unless otherwise provided, reference to any Article or an Exhibit means an Article or Exhibit of the Agreement.
		

		
			 
		

		
			E. Include: "include" and "including" shall mean to be inclusive without limiting the generality of the description proceeding such term and are used in an illustrative sense and not a limiting sense.
		

		
			 
		

		
			F. Performance of an obligation of any kind by a Party must be carried out at that Party’s cost, unless this Agreement states otherwise.
		

		
			 
		

		
			G. The Exhibits form part of this Agreement and have full force and effect as expressly set out in the main body of this Agreement.
		

		
			 
		

		
			H. References in this Agreement to any agreement shall be construed as a reference to such agreement as the same may be supplemented, amended or novated from time to time.
		

		
			 
		

		
			14.9      Counterpart Execution
		

		
			 
		

		
			This Agreement may be executed in any number of counterparts and each such counterpart shall be deemed an original Agreement for all purposes; provided that no Party shall be bound to this Agreement unless and until all Parties have executed a counterpart. For purposes of assembling all counterparts into one document, Farmor is authorized to detach the signature page from one or more counterparts and, after signature thereof by the respective Party, attach each signed signature page to a counterpart.
		

		
			 
		

		
			14.10    Public Announcements
		

		
			 
		

		
			No public announcement or statement regarding the terms or existence of this Agreement shall be made without prior written consent of all Parties; provided that, notwithstanding any failure to obtain such approval, no Party shall be prohibited from issuing or making any such public announcement or statement to the extent it is necessary to do so in order to comply with the 
		

		
			
		

		
			

		 

		

			32

		

 

		

			 

		

		

		
			applicable laws, rules or regulations of any government, legal proceedings or stock exchange having jurisdiction over such Party or its Affiliates, however, any such required public announcement or statement shall include only that portion of information which the disclosing Party is advised by written opinion of counsel (including in-house counsel) is legally required.  Such opinion, along with the proposed public announcement or statement, shall be delivered to the other Party no later than two days prior to any such public announcement or statement.
		

		
			 
		

		
			14.11    Third Party Rights
		

		
			 
		

		
			The Parties agree that no term of this agreement is intended to be enforceable by a person, firm, company or other entity who is not a party to this agreement, whether pursuant to the Contracts (Rights of Third Parties) Act 1999 or otherwise.    
		

		
			 
		

		
			14.12    Entirety
		

		
			 
		

		
			With respect to the subject matter contained herein, this Agreement (i) is the entire agreement of the Parties; and (ii) supersedes all prior understandings and negotiations of the Parties, including the confidentiality agreement made between the Parties dated 5 April 2016 (as subsequently amended).
		

		
			
		

		
			

		 

		

			33

		

 

		

			 

		

		

		
			IN WITNESS of their agreement each Party has caused its duly authorized representative to sign this instrument on the date set out in the first sentence of this Agreement. 
		

		
			 
		

		
			 
		

			
					
						Executed for and on behalf of KOSMOS ENERGY MAURITANIA 

				
	
					
						 

					
					
						 

				
	
					
						Signed:

					
					
						/s/ Christopher Ball

				
	
					
						 

					
					
						 

				
	
					
						Print name:

					
					
						CHRISTOPHER BALL

				
	
					
						 

					
					
						 

				
	
					
						Executed for and on behalf of BP EXPLORATION (WEST AFRICA) LIMITED

				
	
					
						 

					
					
						 

				
	
					
						Signed:

					
					
						/s/ Andrew Lane

				
	
					
						 

					
					
						 

				
	
					
						Print name:

					
					
						ANDREW LANE

				
	
					
						 

					
					
						 

				

		
			
		

		
			

		 

		

			34

		

 

		

			 

		

		

		
			EXHIBIT A
		

		
			ELIGIBLE DISCOVERY
		

		
			 
		

		
			 
		

		
			 
		

		
			Part 1
		

		
			 
		

		
			Tortue Discovery Area
		

		
			 
		

		
			
		

		
			 
		

		
			
		

		
			

		 

		

			35

		

 

		

			 

		

		

		
			EXHIBIT A
		

		
			ELIGIBLE DISCOVERY
		

		
			 
		

		
			 
		

		
			 
		

		
			Part 2
		

		
			Marsouin Discovery Area
		

		
			 
		

		
			
		

		
			 
		

		
			
		

		
			

		 

		

			36

		

 

		

			 

		

		

		
			EXHIBIT B
		

		
			NOT USED
		

		
			 
		

		
			
		

		
			

		 

		

			37

		

 

		

			 

		

		

		
			EXHIBIT C
		

		
			CONTRACT AREA
		

		
			 
		

		
			
		

		
			 
		

		
			
		

		
			

		 

		

			38

		

 

		

			 

		

		

		
			EXHIBIT D
		

		
			FORM OF JOA NOVATION AGREEMENT
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			NOVATION AGREEMENT NO. __
		

		
			 
		

		
			 
		

		
			To
		

		
			 
		

		
			 
		

		
			AMENDED AND RESTATED JOINT OPERATING AGREEMENT
		

		
			 
		

		
			 
		

		
			IN RESPECT OF
		

		
			 
		

		
			 
		

		
			OFFSHORE MAURITANIA
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			Between
		

		
			 
		

		
			 
		

		
			Kosmos Energy Mauritania
		

		
			 
		

		
			 
		

		
			and
		

		
			 
		

		
			 
		

		
			LA SOCIETE MAURITANIENNE DES HYDROCARBURES ET DE PATRIMOINE MINIER
		

		
			 
		

		
			
		

		
			

		 

		

			39

		

 

		

			 

		

		

		
			JOA NOVATION AND AMENDMENT AGREEMENT NO. X_
		

		
			 
		

		
			(Block C_, Offshore Mauritania)
		

		
			 
		

		
			THIS JOA NOVATION AND AMENDMENT AGREEMENT (the “Agreement”) is made as a Deed this ___ day of _______________ 201_ by and among La Société Mauritanienne Des Hydrocarbures et de Patrimoine Minier, the national oil company of the Islamic Republic of Mauritania, incorporated by Decree No. 2005-106 dated 7 November 2005 as amended by Decree No. 2009-168 dated 3 May 2009 and Decree No. 2014-01 dated 6 January 2014 under the laws of the Islamic Republic of Mauritania and having its registered office at Ilot K, Rue 42-133,No. 349, BP 4344, Nouakchott, Islamic Republic of Mauritania (“SMHPM”), Kosmos Energy Mauritania, a Cayman Islands company whose office is located at 4th Floor, Century Yard, Cricket Square, Hutchins Drive, Elgin Avenue, George Town, Grand Cayman, KY1-1209, Cayman Islands (“Kosmos”), and BP Exploration (West Africa) Limited, registered in England and Wales and having it registered office at Chertsey Road, Sunbury-on-Thames, Middlesex. TW16 7BP, U.K. (“BP”), collectively referred to as the “Parties” and individually as a “Party”.
		

		
			 
		

		
			RECITALS
		

		
			 
		

		
			SMHPM and Kosmos have entered into that certain Exploration and Production Contract for Block C_ dated 5 April 2012 with the Islamic Republic of Mauritania, as amended and supplemented, (the “Petroleum Agreement”) and that certain Amended and Restated Joint Operating Agreement dated 1 December 2014, as amended and supplemented, (“JOA”), all documents covering the area known as Block C_, Offshore Mauritania;
		

		
			 
		

		
			Kosmos wishes to transfer (the “Transfer”) to BP an undivided sixty-two percent (62%) Participating Interest, as defined in the JOA (the “Transferred Interest”);
		

		
			 
		

		
			This Agreement will be effective from the earlier to occur of: (a) date of the letter from the Minister of Petroleum, Energy and Mines n° ................... dated ...................... approving the Transfer; and (b) the date on which the Minister of Petroleum, Energy and Mines is deemed to have approved the Transfer in accordance with the Petroleum Agreement   (the “Transfer Effective Date”); and
		

		
			 
		

		
			SMHPM, Kosmos and BP have agreed to execute this Agreement, confirming the release of Kosmos and consent to the assumption by BP, respectively, of the Transferred Interest and amending the JOA on the terms set out herein.
		

		
			 
		

		
			AGREEMENT 
		

		
			 
		

		
			Subject to the Minister of Petroleum, Energy and Mines approving (or being deemed to approve) the Transfer, and with effect from 00.01 hours (Mauritania time) on the Transfer Effective Date the Parties hereby agree as follows:
		

		
			 
		

		
			1.          Each of the Parties severally agrees:
		

		
			 
		

		
			(a)         Kosmos shall cease to be liable for the Transferred Interest and BP shall take the place of Kosmos in respect of the Transferred Interest and shall assume the obligations and liabilities and be entitled to the rights and benefits of Kosmos in such Transferred Interest as of the Transfer Effective Date;
		

		
			 
		

		
			(b)        Kosmos shall continue to be liable for all liabilities, obligations, duties and claims arising under the JOA in respect of the Transferred Interest, whether actual, accrued or contingent, relating to the period prior to the Transfer Effective Date;
		

		
			 
		

		
			(c)         BP undertakes and covenants to observe, perform, discharge and be bound by all liabilities, obligations, duties and claims arising under the JOA in respect of the
		

		
			

		 

		

			40

		

 

		

			 

		

		

		
			Transferred Interest accrued or otherwise arising on or after the Transfer Effective Date; and
		

		
			 
		

		
			(d)         SMHPM releases and discharges Kosmos from its liabilities, obligations, duties and claims assumed by BP pursuant to sub-clauses 1(a) and 1(c) above and accept the assumption by BP of such liabilities, obligations, duties and claims in place thereof.
		

		
			 
		

		
			2.          Article 3.2 (A) of the JOA is hereby amended and restated in its entirety as follows:
		

		
			 
		

		
			The Participating Interests of the Parties are:
		

		
			 
		

			
					
						SMHPM

					
					
						10%

				
	
					
						 

					
					
						 

				
	
					
						Kosmos

					
					
						28%

				
	
					
						 

					
					
						 

				
	
					
						BP

					
					
						62%

				
	
					
						 

					
					
						 

				
	
					
						TOTAL

					
					
						100%

				

		
			 
		

		
			3.          Additionally, the following provisions  of the JOA are hereby amended and restated in their entirety as follows:
		

		
			 
		

		
			(a)   In the opening paragraph, Party No 2 is deleted and replaced with:
		

		
			 
		

		
			“2.  BP Exploration (West Africa) Limited, a company incorporated under the laws of England and Wales and having its registered office at Chertsey Road, Sunbury-on-Thames, Middlesex. TW16 7BP, U.K.  (“BP”): and”
		

		
			 
		

		
			(b)   All references to “Chevron Mauritania Exploration Limited” are deleted and replaced by “BP Exploration (West Africa) Limited”; and all references to “Chevron” are deleted and replaced by “BP”.
		

		
			 
		

		
			(c)   Article 1.40 is deleted and all other references to the First Well and Chevron’s election regarding the First Well are deleted.
		

		
			 
		

		
			(d)  the third and fourth Recitals are deleted and replaced by the following:
		

		
			 
		

		
			“WHEREAS, Kosmos and BP entered into a Farmout Agreement dated 15 December 2016 and SMHPM elected not to exercise its pre-emption rights under this Agreement to acquire the Participating Interest proposed to be assigned to BP by letter n° ................... dated ......................:”
		

		
			 
		

		
			“WHEREAS, the Parties, following approval by the Minister of Petroleum, Energy and Mines by letter n° ................... dated ...................... and Kosmos’ transfer of a sixty two percent (62%) Participating Interest to BP, desire to define their respective rights and obligations with respect to their operations under the Contract.” 
		

		
			 
		

		
			(e)   Article 1.76 is deleted and replaced with the following:
		

		
			 
		

		
			“Technical Operations means exploration activities within the scope of the Agreement conducted by the Technical Operator on behalf of all Parties on or after the Operator Transfer Effective Date during the Exploration Period, as further designated in Articles 4.2(C) and 4.2(D).”
		

		
			 
		

		
			(f)   Article 1.77 is deleted and replaced with the following:
		

		
			
		

		
			

		 

		

			41

		

 

		

			 

		

		

		
			“Technical Operator means Kosmos or its Affiliate as designated under Article 4.1B.”
		

		
			 
		

		
			(g) The second paragraph of Article 3.4(E) is deleted and replaced with the following:
		

		
			 
		

		
			“For the avoidance of doubt, as from ________(Transfer Effective Date) the aggregate amount payable by each Party (other than the NOC) in respect of its Participating Interest and the portion of the Carried Interest Amount to be borne by such Party pursuant to Article 3.4(B) in respect of Joint Operations, based on the Participating Interests set out in Article 3.2(A) shall be:
		

		
			 
		

			
					
						Kosmos

					
					
						31.11%

				
	
					
						 

					
					
						 

				
	
					
						BP

					
					
						68.89%

				
	
					
						 

					
					
						 

				
	
					
						Total

					
					
						100%”

				

		
			 
		

		
			(h)   Articles 1.79 to 1.81 are renumbered as Articles 1.80 to 1.82, respectively, and the following is inserted as new Article 1.79:
		

		
			 
		

		
			"Transfer Effective Date has the meaning given in the Novation and Amendment Agreement entered into in respect of this Agreement on [....]."
		

		
			 
		

		
			(i)   Article 3.1(C) is deleted.
		

		
			 
		

		
			(j)  The fourth paragraph of Article 3.4(E) is deleted.
		

		
			 
		

		
			(k)  Article 4.1(A) is deleted and replaced with the following:
		

		
			 
		

		
			(A) “Operator.  Subject to Article 4.1(B) and with effect from 1 April 2017 (or such later date as is mutually agreed between the Parties) (the “Operator Transfer Effective Date”, each Party severally appoints BP as Operator for conducting Joint Operations other than Technical Operations within the Exploration Area during the Exploration Period and as Operator pursuant to any Exploitation Authorization and BP agrees to act as such in accordance with this Agreement as from the Operator Transfer Effective Date.”
		

		
			 
		

		
			(l)   Article 4.1(B) is deleted and replaced with the following:
		

		
			 
		

		
			“During the Exploration Period Kosmos will be the Technical Operator for Technical Operations until such time as the Exploration Period expires in accordance with article 3 of the Contract.  The costs arising in connection with those activities shall be charged to the Joint Account.  Articles 4.2(B)(1)-(4), (6)-(12) and (15)-(17), 4.2(E), 4.3, 4.4, 4.6, 4.8, 4.9, 4.10, 4.11, 4.12, 6.6, 6.7, 6.8, 10.1(D), 20.1(C) shall apply, mutatis mutandis, to the Technical Operator.  Exploitation Area operations will be conducted separately, with Exploration Area operations continuing in the other areas.”
		

		
			 
		

		
			(m)  Article 4.1(C) is deleted.
		

		
			 
		

		
			(n)  Article 4.2(D) is deleted and replaced with the following:
		

		
			 
		

		
			“Technical Operator is responsible for all exploration activities conducted prior to a decision by the Operating Committee to appraise a discovery pursuant to Article 6.1., including but not limited to:
		

		
			 
		

		
			
		

		
			

		 

		

			42

		

 

		

			 

		

		

		
			1.   Undertake petroleum system analysis (PSA) including basin/play assessment and prospect identification, evaluation, maturation and ranking;
		

		
			 
		

		
			2.   Formulate exploration strategy, in consultation with Operator, including:
		

		
			 
		

		
			a.   2D / 3D seismic
		

		
			 
		

		
			b.   Drilling – number, timing, sequencing and location of wells;
		

		
			 
		

		
			3.   Oversee post – well analysis and studies for all exploration drilling;
		

		
			 
		

		
			4.   Define exploration relinquishment areas, as necessary, in consultation with Operator;
		

		
			 
		

		
			5.   Propose extensions, if applicable, for exploration areas;
		

		
			 
		

		
			6.   Carry out all exploration operations in coordination with Operator, including:
		

		
			 
		

		
			a.  EIAs;
		

		
			 
		

		
			b.  2D / 3D seismic – survey planning, contracting, and acquisition / processing; and
		

		
			 
		

		
			c.  Wells – planning, design, permitting, contracting and operating of exploration well operations (including drilling, coring, logging and testing);
		

		
			 
		

		
			7.   Co – ordinate all daily activities in support of exploration operations including reports and meetings;
		

		
			 
		

		
			8.   Provide Operator as necessary and in a timely manner, with all exploration information in support of partner and government meetings, such as TCM’s, OCM’s and visits, including:
		

		
			 
		

			
	
			
				 a.
			

			
	
			
			Information and/or reports required by Operator for submission to JOA parties (i.e. OCM materials and resolutions, exploration WP&B, AFEs, costs, cash calls, etc.);

		
			 
		

		
			9.   Accompany and attend all Exploration–related meetings with partners and/or government; and
		

		
			 
		

		
			10.  Definition of discovery area under Article 6.1(C) by Technical Operator, in consultation with Operator.”
		

		
			 
		

		
			(o)   The reference to "Technical Operator (or Operator if he assumes the duties of Technical Operator)" in first sentence of Article 4.3(B) is replaced with a reference to "Operator".  
		

		
			 
		

		
			(p)   For the purpose of service of notices under the terms of Article 17 of the JOA, the contact details of BP are:
		

		
			 
		

		
			BP Exploration (West Africa) Limited
		

		
			Chertsey Road 
		

		
			Sunbury-on-Thames 
		

		
			Middlesex 
		

		
			TW16 7BP
		

		
			E-mail: andy.lane@uk.bp.com
		

		
			Attn.:Andy C. Lane, Head of Business Development, Gas values Chain.
		

		
			 
		

		
			4.          By executing this Agreement, SMHPM hereby: (a) gives its consent to the Transfer pursuant to Article 12.1(D) of the JOA; and (b) waives any rights in respect of the Transfer under Article 12.1(F) of the JOA. 
		

		
			 
		

		
			
		

		
			

		 

		

			43

		

 

		

			 

		

		

		
			 
		

		
			5.         This Agreement shall constitute all actions, consents, confirmations, agreements, and undertakings required under the JOA of Kosmos and SMHPM and BP in respect of: (a) the Transfer with effect from Transfer Effective Date; and (b) the appointment of BP as Operator (as defined in the JOA) and Kosmos as Technical Operator (as defined in the JOA, as amended herein) with effect from the Operator Transfer Effective Date.
		

		
			 
		

		
			6.          Except as expressly provided in this Agreement, all other provisions of the JOA shall remain in full force and effect and binding on the parties thereto, insofar as the same are in force and effect and binding on those parties immediately prior to the Transfer Effective Date.
		

		
			 
		

		
			7.          Except as expressly provided in this Agreement, the terms of this Agreement shall be effective as of the Transfer Effective Date.  Each reference in this Agreement (including the Recitals) to the JOA shall be construed and have effect as a reference to the same as it may have been supplemented, amended, extended, or novated prior to the date hereof.
		

		
			 
		

		
			8.          This Agreement may be executed in any number of counterparts with the same effect as if the signatures on the counterparts were upon a single engrossment of this Agreement provided that this Agreement shall not be effective until all Parties have executed a counterpart.
		

		
			 
		

		
			9.          Nothing in this Agreement shall confer on any third party any right to enforce any term of this Agreement.
		

		
			 
		

		
			10.        This Agreement is governed by and shall be construed in accordance with the laws of England and Wales, exclusive of any conflicts of law principles that could require the application of any other law.
		

		
			 
		

		
			11.        Any dispute, controversy or claim (of any and every kind or type, whether based on contract, tort, statute, regulation or otherwise) arising out of, relating to, or connected with this Agreement, including any dispute as to its construction, validity, interpretation, enforceability or breach of this Agreement shall be resolved in accordance with Article 18.2 of the JOA.
		

		
			 
		

		
			IN WITNESS WHEREOF this Agreement has been executed and delivered as a Deed on behalf of the Parties on the day and year first above written. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						LA SOCIETE MAURITANIENNE DES HYDROCARBURES ET DE PATRIMOINE MINIER

					
					
						   

					
					
						BP EXPLORATION (WEST AFRICA) LIMITED

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						BY:

					
					
						 

					
					
						 

					
					
						BY:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						NAME:

					
					
						 

					
					
						 

					
					
						NAME:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						TITLE:

					
					
						 

					
					
						 

					
					
						TITLE:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS:

					
					
						 

					
					
						 

					
					
						WITNESS:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			44

		

 

		

			 

		

		

		
			 
		

			
					
						KOSMOS ENERGY MAURITANIA

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						BY:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						NAME:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						TITLE:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS:

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			45

		

 

		

			 

		

		

		
			EXHIBIT E
		

		
			FORM OF DEED OF ASSIGNMENT
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			DEED OF ASSIGNMENT 
		

		
			 
		

		
			 
		

		
			 
		

		
			IN
		

		
			 
		

		
			 
		

		
			EXPLORATION AND PRODUCTION CONTRACT
		

		
			 
		

		
			 
		

		
			 
		

		
			FOR
		

		
			 
		

		
			 
		

		
			BLOCK C_
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			46

		

 

		

			 

		

		

		
			The present deed of assignment is concluded between:
		

		
			 
		

		
			KOSMOS ENERGY MAURITANIA, a company organized and established under the laws of the Cayman Islands, whose registered office is located at 4th Floor, Century Yard, Cricket Square, Hutchins Drive, Elgin Avenue, George Town, Grand Cayman KY1-1209, Cayman Islands, hereinafter named "KOSMOS", (the “Assignor”), herein represented by its __ [title, name of person signing]_, 
		

		
			 
		

		
			AND
		

		
			 
		

		
			BP EXPLORATION (WEST AFRICA) LIMITED, a company incorporated under the laws of the England and Wales, whose registered office is at Chertsey Road, Sunbury-on-Thames, Middlesex, TW167BP, England, hereinafter referred to as “BP” (the “Assignee”), herein represented by its [title, name of person signing]_;  
		

		
			 
		

		
			BP and KOSMOS are collectively referred to hereinafter as the “Parties” 
		

		
			 
		

		
			PREAMBLE
		

		
			 
		

		
			A.        The Islamic Republic of Mauritania and KOSMOS are parties to the Exploration and Production Contract for Block C_, offshore Mauritania, dated 5 April 2012 and with an effective date of 15 June 2012 and pursuant to article 21 of the Contract the Government through La Société Mauritanienne Des Hydrocarbures et de Patrimoine Minier ("SMHPM") acquired as at the effective date of the Contract a Participating Interest of ten percent (10%) (the “Petroleum Agreement”).  Pursuant to Article 3 of the Petroleum Agreement, an exploration authorization has been issued and extended by the Minister of Petroleum, Energy and Mines in accordance with the Petroleum Agreement.
		

		
			 
		

		
			B.        Chevron Mauritania Exploration Limited pursuant to an assignment agreement dated 1 December 2014 approved by the Minister of Petroleum, Energy and Mines (letter n° 221 dated 13 March 2015) acquired a Participating Interest of thirty percent (30%) in the Petroleum Agreement; and subsequently as of 9 June 2016 Chevron Mauritania Exploration Limited withdrew from and relinquished its Participating Interest in the Petroleum Agreement. 
		

		
			 
		

		
			D.        In accordance with the Petroleum Agreement, SMHPM and KOSMOS are holders of the exclusive right to perform Petroleum Operations, as defined in the Petroleum Agreement in the area defined by the Petroleum Agreement;
		

		
			 
		

		
			E.        Article 22 of the Petroleum Agreement permits the Parties to the Petroleum Agreement to assign and transfer in whole or in part their Percentage Interest as defined by the 
		

		
			 
		

		
			
		

		
			

		 

		

			1

		

 

		

			 

		

		

		
			Petroleum Agreement to a third party;
		

		
			 
		

		
			F.         Article 22 of the Petroleum Agreement require the approval of the Minister of Petroleum, Energy and Mines before an assignee may acquire any rights pursuant to the Petroleum Agreement;
		

		
			 
		

		
			G.        Kosmos requested the prior approval of the Minister of Petroleum, Energy and Mines by its letter n° ................... dated ......................; and the Minister of Petroleum, Energy and Mines provided the requested approval by letter n° ................... dated .......................
		

		
			 
		

		
			In witness whereof, the Parties have agreed the following between themselves in consideration of the obligations set out in the present deed of assignment:
		

		
			 
		

		
			Article 1
		

		
			Pursuant to the Petroleum Agreement, KOSMOS assigns and transfers, and BP accepts by the present document, an undivided sixty-two percent (62%) Percentage Interest in the Petroleum Agreement (the “BP Assigned Interest”) effective as of the date of the letter from the Minister of Petroleum, Energy and Mines n° ................... dated ...................... (the “Effective Date”), so that the Percentage Interest held by the parties in the Petroleum Agreement at the Effective Date is as follows:
		

		
			 
		

			
					
						SMHPM

					
					
						ten percent (10%)

				
	
					
						 

					
					
						 

				
	
					
						KOSMOS

					
					
						twenty-eight percent (28%)

				
	
					
						 

					
					
						 

				
	
					
						BP

					
					
						sixty-two percent (62%)

				

		
			 
		

		
			Article 2
		

		
			BP acknowledges and accepts that it shall assume and fulfil all the obligations, responsibilities and duties from the Effective Date, under the Petroleum Agreement that may arise after this date related to the BP Assigned Interest.
		

		
			 
		

		
			BP agrees to indemnify and hold KOSMOS harmless from and against all such obligations, liabilities, duties, costs and expenses arising out of operations relating to the Petroleum Agreement which accrue after the Effective Date to the extent they are related to the BP Assigned Interest.
		

		
			 
		

		
			Article 3
		

		
			KOSMOS declares and warrants by the present deed of assignment that immediately before the Effective Date it is the owner of the BP Assigned Interest and that it has not, with the exception of the transfers Participating Interest referenced in sections A and B of the Preamble, in any way previously transferred, assigned or pledged its interest under the Petroleum Agreement 
		

		
			
		

		
			

		 

		

			2

		

 

		

			 

		

		

		
			constituting the object of the present assignment to BP, and KOSMOS shall undertake to indemnify and shall hold BP harmless from all claims, losses or damages that BP may suffer or incur owing to a violation of the above declaration and warranty.
		

		
			 
		

		
			KOSMOS herein commits to indemnify and hold BP harmless from all responsibilities and obligations relating to the BP Assigned Interest which accrue before the Effective Date.
		

		
			 
		

		
			Article 4
		

		
			The Parties shall sign all other documents and shall carry out all other requirements that may be necessary or desirable in order to confirm or record the assignment of the BP Assigned Interest, and to put this into effect in accordance with the laws of the Islamic Republic of Mauritania.
		

		
			 
		

		
			Article 5
		

		
			All the terms used in the present deed of assignment (with the exception of the term “Parties”) have the same definition as that indicated in the Petroleum Agreement.
		

		
			 
		

		
			In witness whereof, the Parties have duly signed this deed of assignment in four (4) original copies in the French language and in three (3) copies in the English language on the ___ day of __________________.
		

		
			 
		

		
			 
		

			
					
						BP EXPLORATION (WEST AFRICA) LIMITED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Position:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Witness:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						KOSMOS ENERGY MAURITANIA

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Position:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Witness:

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			3

		

 

		

			 

		

		

		
			EXHIBIT F
		

		
			NOT USED
		

		
			 
		

		
			
		

		
			

		 

		

			4

		

 

		

			 

		

		

		
			EXHIBIT G
		

		
			NOT USED
		

		
			
		

		
			

		 

		

			5

		

 

		

			 

		

		

		
			EXHIBIT H
		

		
			 
		

		
			Farmor Warranties
		

		
			 
		

		
			1.            Incorporation and Capacity
		

		
			 
		

		
			1.1          Farmor is duly incorporated with limited liability and validly existing under the laws of the Cayman Islands.
		

		
			 
		

		
			1.2         The documents which contain or establish Farmor’s constitution incorporate provisions which authorise, and all necessary corporate action has been taken to authorise, Farmor to execute and deliver this Agreement and perform the transaction contemplated by this Agreement, which Agreement will constitute legally binding obligations on Farmor and not cause Farmor to violate any applicable law, judgment, order, permit or any other Agreement, consent or instrument binding on Farmor.
		

		
			 
		

		
			2.           Performance
		

		
			 
		

		
			Subject to fulfilment of the Conditions Precedent, the signing and delivery of this Agreement and the performance of any of the transactions contemplated by this Agreement will not contravene or constitute a default under any provision contained in any agreement, instrument, law, judgment, order, licence, permit or consent by which Farmor or any of its Affiliates or their respective assets is bound or affected or cause any limitation on Farmor or the powers of its directors, whether imposed by or contained in any document which contains or establishes its constitution or in any law, order, judgment, agreement, instrument or otherwise to be exceeded and which would result in Farmor being unable to perform its obligations under this Agreement.
		

		
			 
		

		
			3.           Solvency
		

		
			 
		

		
			No order has been made, petition presented or meeting convened for the purpose of considering a resolution for the winding up or for the appointment of a liquidator or provisional liquidator of Farmor.
		

		
			 
		

		
			4.           Sole Ownership
		

		
			 
		

		
			Farmor is a party to the Interest Documents and the sole legal and beneficial owner of the Interests.
		

		
			 
		

		
			5.           Right to Assign
		

		
			 
		

		
			Following fulfilment of the Conditions Precedent, Farmor will have the right, subject to Approval, to transfer and assign full legal and beneficial ownership of the Interests to Farmee.
		

		
			 
		

		
			6.           No Encumbrance
		

		
			 
		

		
			Subject to the provisions of the Interest Documents, no Encumbrance is in existence and in force over the Interests nor, subject as aforesaid, is there in effect any agreement or commitment to create the same; nor are there any other matters which restrict Farmor’s ability freely to dispose of the Interests.
		

		
			 
		

		
			7.           Interests and Interest Documents
		

		
			 
		

		
			7.1         Farmor has not committed any breach of the Interest Documents nor received notice (in its role as Operator under the Contract and JOA) and not otherwise aware that any of the other parties to any of the above-mentioned documents has committed any breach.
		

		
			 
		

		
			
		

		
			

		 

		

			6

		

 

		

			 

		

		

		
			7.2         The Interests and all rights and interests of Farmor thereunder or deriving therefrom are in full force and effect.
		

		
			 
		

		
			7.3         No notice has been given to Farmor or, that Farmor is aware of, to any party to the Interest Documents (other than Farmor and Farmee) by the Government of any intention to terminate, amend or revoke the Contract.
		

		
			 
		

		
			7.4         No area under the Contract is in the course of being surrendered or relinquished in whole or in part, and there is no proposal to do so.
		

		
			 
		

		
			7.5         Farmor has not given any notice of withdrawal from the Contract.
		

		
			 
		

		
			7.6         Farmor is not aware of any facts which would have a material adverse impact on the value of the Interests.
		

		
			 
		

		
			7.7         The Contract is currently in the first renewal phase of the exploration period and no party to the Contract has issued a notice under the Contract to apply for an extension of any current Exploration Period (as defined in the Contract) or for entry into a new phase of the Exploration Period.
		

		
			 
		

		
			7.8         All guarantees required pursuant to the terms of the Contract have been provided by Farmor, accepted by the Government and are in full force and effect.
		

		
			 
		

		
			7.9         No vote to remove Farmor in its capacity as operator under the Contract or JOA is pending or has been proposed, and Farmor, in its capacity as operator under the Contract or JOA, has not intimated that it intends to resign as such.
		

		
			 
		

		
			7.10       Not Used
		

		
			 
		

		
			7.11       The Contract Area is the accurate delineated area covering the Contract and is not, in full or in part, subject to any competing or overlaying claim by a third party or group of parties.
		

		
			 
		

		
			8.           No Litigation
		

		
			 
		

		
			8.1         Farmor is not a party to any litigation or arbitration or administrative proceedings in respect of which a writ or summons or other formal pleading has been served or judgement issued, nor is there any claim (whether or not formulated within a formal pleading as aforesaid) or dispute in relation to, and which is likely materially to prejudice or detrimentally affect in any manner, the Interests, and Farmor is not aware that any such litigation, arbitration, administrative proceedings, claim or dispute are threatened or pending either by or against Farmor, and there are no facts known to Farmor which are likely to give rise to any claim or dispute which is likely so to prejudice or detrimentally affect in any manner the Interests, and none of the parties to the Interest Documents is a party to any litigation, arbitration or administrative proceedings or any claim or dispute or judgment in relation to, and which is likely to prejudice or detrimentally affect in any manner, the Interests.
		

		
			 
		

		
			8.2         There are no overlaps, competing claims or disputes in relation to the Contract Area from any third party.
		

		
			 
		

		
			9.           Insurance
		

		
			 
		

		
			9.1         The insurance policies maintained by Farmor in respect of the Interests have at all material times afforded to Farmor adequate cover against such risks as companies carrying on the same
		

		
			
		

		
			

		 

		

			7

		

 

		

			 

		

		

		
			type of business as Farmor commonly cover, and the full terms of all such insurance policies are included in the Disclosure Documents.
		

		
			 
		

		
			9.2         All premiums due in respect of those insurance policies have been fully paid and there are no circumstances which may lead to liability under any such insurances being avoided by the insurers and none of the insurances is subject to any special or unusual terms or restrictions.
		

		
			 
		

		
			9.3         No claim is outstanding under any of the insurances and no circumstances exist which are likely to give rise to any such claim.
		

		
			 
		

		
			10.         Interest Documents
		

		
			 
		

		
			The Interest Documents are the only documents of which Farmor is aware which govern or relate to the creation, existence and validity of the Interests and are the only agreements to which Farmor is party relating to the Interests, and Farmor has made available to Farmee accurate and complete copies of the Interest Documents, save that, where Farmor has provided any translation of a document, Farmor has done so as a courtesy to Farmee and Farmor makes no warranty as to the accuracy of such translation. 
		

		
			 
		

		
			11.         Provision of Information
		

		
			 
		

		
			11.1       Farmor has in its possession or has access to all Data and information relating to the Interests (including complete copies of all material geological, geophysical, well and field development data and any other information in the possession of Farmor or any of its Affiliates relating to the evaluation of the proven, probable and possible reserves in the Contract Area and on reservoir volume and performance) to which it is entitled under the terms of the Interest Documents and all such Data and information is included in the Disclosure Documents.
		

		
			 
		

		
			11.2       Each Answer is true and accurate in every material respect.
		

		
			 
		

		
			12.         No Force Majeure
		

		
			 
		

		
			Farmor is not aware of any force majeure event or other event which would excuse or has excused performance of any of the obligations of Farmor which have arisen under any of the Interest Documents and this Agreement.
		

		
			 
		

		
			13.         Tax
		

		
			 
		

		
			13.1       Farmor has, since it acquired the Interests, complied with all statutory requirements, regulations, orders, provisions, directions or conditions in relation to the Interests concerning Tax including the making on time of accurate returns and payments and the proper maintenance and preservation of records and Farmor has not been given any penalty, notice or warning regarding the same.
		

		
			 
		

		
			13.2       Farmor is not involved in any dispute, and is not the subject of any enquiries, with any Tax authority or any other appropriate fiscal authority, whether of the Islamic Republic of Mauritania or elsewhere, concerning any matter likely to affect the Interests in any way other than routine enquiries of a minor nature following the submission of computations and returns.
		

		
			 
		

		
			13.3       All documents under which Farmor derives title to the Interests and which attract transfer tax have been duly stamped, if required, and are in the possession of Farmor or under its control.
		

		
			 
		

		
			14.         Environmental
		

		
			

		 

		

			8

		

 

		

			 

		

		

		
			14.1       Farmor has not been notified of the occurrence of any environmental incident concerning the Interests and operations related thereto.
		

		
			 
		

		
			14.2       Farmor has not received any demands, notices, orders or directives under any environmental laws, whether or not with respect to any breach thereof, nor in relation to any environmental liabilities which require any remedial work, clean up or any other such work, repairs, construction or capital expenditures with respect to the Interests or the operations related thereto or use or ownership thereof which have not been fully complied with.
		

		
			 
		

		
			14.3       No complaint has been filed by any governmental department, body or agency or any non-governmental group or organization in respect of the Interests concerning any environmental damage, injury, alleged damage or breach of any legislation, rules, regulations and orders relating to the environment.
		

		
			 
		

		
			15.         Bribery and Anti-Corruption
		

		
			 
		

		
			15.1     Neither Farmor nor any of its Affiliates nor their respective Associated Persons:
		

		
			 
		

		
			(i)      has been, is or will be engaged in any activity, practice or conduct related to the Interest Documents or to this Agreement that would constitute a violation of the Anti-Corruption Laws and Obligations either with respect to itself or with respect to the Farmee;
		

		
			 
		

		
			(ii)     has paid, offered, promised or authorized the payment, directly or indirectly, of any monies or anything of value to any Government Official (as defined in the Joint Operating Agreements), for the purpose of improperly influencing any act or decision of such Government Official or improperly inducing such Government Official to use his or her influence with a government or instrumentality thereof to obtain or retain business or direct business to any Person in connection with the Interest Documents or this Agreement; or 
		

		
			 
		

		
			(iii)     Farmor is not aware that it is the subject of any investigation, inquiry or enforcement proceedings by any government, administrative or regulatory body regarding any offence or alleged offence under the Anti-Corruption Laws and Obligations related to the Interest Documents or this Agreement, and no such investigation, inquiry or proceedings has been threatened, and there are no circumstances likely to give rise to any such investigation, inquiry or proceedings.
		

		
			 
		

		
			15.2     Farmor is not aware after due inquiry, that any Person:
		

		
			 
		

		
			(i) has engaged in any activity, practice or conduct related to the Interest Documents or to this Agreement that would violate the terms of the Anti-Corruption Laws and Obligations, even if that Person is outside the jurisdiction or scope of those laws; 
		

		
			 
		

		
			(ii) has paid, offered, promised or authorized the payment, directly or indirectly, of any monies or anything of value to any Government Official, for the purpose of improperly influencing any act or decision of such Government Official or improperly inducing such Government Official to use his or her influence with a government or instrumentality thereof to obtain or retain business or direct business to any Person in connection with the Interest Documents or this Agreement.
		

		
			 
		

		
			15.3       No principal, shareholder (or other equity holder), director, officer or employee of Farmor is or will become during the term of this Agreement a Government Official in the Islamic Republic of Mauritania.
		

		
			 
		

		
			16.         No Fees
		

		
			 
		

		
			
		

		
			

		 

		

			9

		

 

		

			 

		

		

		
			Farmor has not incurred any obligation or entered into any agreement for any investment banking, brokerage, finder’s fee, commission, agency or similar payment in respect of any transaction contemplated by this Agreement for which Farmee may incur any liability.
		

		
			 
		

		
			17.         Operator
		

		
			 
		

		
			17.1       All material permits and licences required to carry out Joint Operations (as defined under the Contract) are held by the Farmor as Operator and valid and subsisting and there has been no material violation thereof.
		

		
			 
		

		
			17.2       Farmor as Operator has complied with the Contract and all applicable laws (including environmental laws) in carrying out the Joint Operations (as defined under the Contract).
		

		
			 
		

		
			17.3       No sole risk activities (as defined under the JOA) have been approved under the Interest Documents and no notices have been received for sole risk activities, or so far as the Farmor as Operator is aware, are likely to be issued. 
		

		
			
		

		
			

		 

		

			10

		

 

		

			 

		

		

		
			EXHIBIT I
		

		
			Farmee Warranties
		

		
			 
		

		
			1.           Incorporation and Capacity
		

		
			 
		

		
			1.1         Farmee is duly incorporated with limited liability and validly existing under the laws of England and Wales.
		

		
			 
		

		
			1.2         The documents which contain or establish Farmee’s constitution incorporate provisions which authorize, and all necessary corporate action has been taken to authorize, Farmee to execute and deliver this Agreement and perform the transaction contemplated by this Agreement, which Agreement will constitute legally binding obligations on Farmee and not cause Farmee to violate any applicable law, judgment, order, permit or any other Agreement, consent or instrument binding on Farmee.
		

		
			 
		

		
			2.           Performance
		

		
			 
		

		
			Subject to fulfilment of the Conditions Precedent, the signing and delivery of this Agreement and the performance of any of the transactions contemplated by this Agreement will not contravene or constitute a default under any provision contained in any agreement, instrument, law, judgment, order, licence, permit or consent by which Farmee or any of its Affiliates or their respective assets is bound or affected or cause any limitation on Farmee or the powers of its directors, whether imposed by or contained in any document which contains or establishes its constitution or in any law, order, judgment, agreement, instrument or otherwise to be exceeded and which would result in Farmee being unable to perform its obligations under this Agreement.
		

		
			 
		

		
			3.           Solvency
		

		
			 
		

		
			No order has been made, petition presented or meeting convened for the purpose of considering a resolution for the winding up or for the appointment of a liquidator or provisional liquidator of Farmee.
		

		
			 
		

		
			4.           No Litigation
		

		
			 
		

		
			No litigation, arbitration, administrative proceeding, dispute or judgment against Farmee or to which Farmee is a party which might by itself or together with any such other proceedings have a material adverse effect on its business, assets or condition and which would materially and adversely affect its ability to observe or perform its obligations under this Agreement and the transactions contemplated hereby, is subsisting or threatened or pending against Farmee or any of its assets.
		

		
			 
		

		
			5.           Anti Bribery and Corruption
		

		
			 
		

		
			5.1         Neither Farmee nor any of its Affiliates nor their respective Associated Persons:
		

		
			 
		

		
			(i)      has been, is or will be engaged in any activity, practice or conduct related to the Interest Documents or to this Agreement that would constitute a violation of the Anti-Corruption Laws and Obligations either with respect to itself or with respect to the Farmor;
		

		
			 
		

		
			(ii)     has paid, offered, promised or authorized the payment, directly or indirectly, of any monies or anything of value to any Government Official (as defined in the Joint Operating Agreements), for the purpose of improperly influencing any act or decision of such Government Official or improperly inducing such Government Official to use his or her influence with a government or
		

		
			
		

		
			

		 

		

			11

		

 

		

			 

		

		

		
			instrumentality thereof to obtain or retain business or direct business to any Person in connection with the Interest Documents or this Agreement; or 
		

		
			 
		

		
			(iii)Farmee is not aware that it is the subject of any investigation, inquiry or enforcement proceedings by any government, administrative or regulatory body regarding any offence or alleged offence under the Anti-Corruption Laws and Obligations related to the Interest Documents or this Agreement, and no such investigation, inquiry or proceedings has been threatened, and there are no circumstances likely to give rise to any such investigation, inquiry or proceedings.
		

		
			 
		

		
			5.2         No principal, shareholder (or other equity holder), director, officer or employee of Farmee is or will become during the term of this Agreement a Government Official in the Islamic Republic of Mauritania.
		

		
			 
		

		
			6.           No Fees
		

		
			 
		

		
			Farmee has not incurred any obligation or entered into any agreement for any investment banking, brokerage, finder’s fee, commission, agency or similar payment in respect of any transaction contemplated by this Agreement for which Farmor may incur any liability.
		

		
			
		

		
			

		 

		

			12

		

 

		

			 

		

		

		
			EXHIBIT J
		

		
			 
		

		
			 
		

		
			EXHIBIT J
		

		
			Part 1
		

		
			 
		

		
			Firm Work Programme (Exploration and Appraisal)
		

		
			 
		

		
			1.   Exploration Wells
		

		
			 
		

		
			a.   Two firm Exploration Wells in Mauritania to target outboard basin floor fan fairways, with the objective of testing the northern and southern source kitchens within the Contract Area 
		

		
			 
		

		
			i.   Each of the Exploration Wells to be drilled to the top of 106_Albian;
		

		
			 
		

		
			ii.  The two firm Exploration Wells in Mauritania, will target, unless otherwise mutually agreed:
		

		
			 
		

		
			1.   A prospect in Block C8 or C13; and
		

		
			 
		

		
			2.   The Lamantin prospect in C12/C6 or an alternative C12/C6 prospect to be mutually agreed by the Parties
		

		
			 
		

		
			2.   DST
		

		
			 
		

		
			a.   A drill stem test (“DST”) within the Tortue Discovery Area
		

		
			 
		

		
			3.   Wells and Schedule
		

		
			 
		

		
			a.   The objective, design and duration of each Exploration Well and the DST to be determined pursuant to the JOA, Operator and Technical Operator to consult, including with the Steering Committee, if necessary, on all recommendations to the Operating Committee.
		

		
			 
		

		
			b.   It is anticipated that the drilling and testing program for the Exploration Wells and the DST will be continuous and conducted in an agreed order.
		

		
			 
		

		
			c.   The program will commence no later May 1 2017.  If for technical reasons beyond the Parties control the entire program cannot be completed in 2017, then the program will be completed as soon thereafter as practicable.
		

		
			 
		

		
			
		

		
			

		 

		

			13

		

 

		

			 

		

		

		
			EXHIBIT J
		

		
			Part 2
		

		
			 
		

		
			 
		

		
			Firm Work Programme (Development)
		

		
			 
		

		
			1.   Development Studies
		

		
			 
		

		
			a.   Operator shall conduct the following activities:
		

		
			 
		

		
			i.    Studies to establish (a) location of breakwater and pre-treatment facility; (b) scope of phase 1 pre-treatment facility; (c) breakwater configuration capable of expansion; and (d) LNG cooling solution capable of expansion
		

		
			 
		

		
			ii.   metocean survey/ report results; 
		

		
			 
		

		
			iii.  G&G site survey results at breakwater and Tortue sites; 
		

		
			 
		

		
			iv.  Negotiate and finalize  all agreements required with a third party  FLNG contractor;
		

		
			 
		

		
			v.   concept screening to allow expansion of LNG facilities; 
		

		
			 
		

		
			vi.  concept process safety, environmental studies and operations philosophy; 
		

		
			 
		

		
			vii. flow assurance and water breakthrough risk mitigation studies; and
		

		
			 
		

		
			viii. Any other activities or studies to enable an investment decision on Tortue by the end of 2017.
		

		
			 
		

		
			2.   Schedule
		

		
			 
		

		
			a.   Operator will aim to complete this program by the end of first quarter 2017 to enable an investment decision on Tortue by the end of 2017.
		

		
			
		

		
			

		 

		

			14

		

 

		

			 

		

		

		
			EXHIBIT K
		

		
			Operator Transition Provisions
		

		
			 
		

		
			Transition Plan Key Principles
		

		
			 
		

		
			Purpose:
		

		
			 
		

		
			Ensure the joint venture continues to be highly efficient and the transition is seamless
		

		
			 
		

		
			Ensure the Tortue Project continues along its contemplated timeline safely and reliably
		

		
			 
		

		
			Ensure the host Governments view the joint venture transition as a highly efficient and seamless process
		

		
			 
		

		
			Period: Post Initialing – Pre Signing (~6 weeks)
		

			
	
			
				 ·
			

			
	
			
			Kosmos will inform and consult with BP on all key discussions and key decisions with respect to:

		
			oThe Governments of Mauritania and Senegal
		

		
			oEngagement with Co-venturers in Mauritania and Senegal
		

		
			oa third party liquefaction contractor
		

		
			oICA & UOA
		

		
			oCommitted exploration activities within the Area of Interest
		

		
			oTortue DST operations planning & readiness
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Kosmos and BP identify Joint Transition Team to be charged with creating Transition Plan and a Steering Committee to provide oversight to the Transition process

			
	
			
				 ·
			

			
	
			
			BP implements New Country Entry visit with support from Kosmos

		
			 
		

		
			Period: Post Signing – Pre Close (~6 weeks)
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Joint Transition Team develops detailed plan to transition operatorship and assisting BP in the establishment of relationships post close with the objective of delivering the Purpose outlined above

			
	
			
				 ·
			

			
	
			
			Kosmos will continue to inform and consult with BP on all key discussions and key decisions with respect to Co-venturers in Mauritania and Senegal

			
	
			
				 ·
			

			
	
			
			BP to participate in discussions with any third party liquefaction contractor and participate as an observer in all other joint venture discussions/ working groups as permitted by the National Oil Companies and relevant agreements

			
	
			
				 ·
			

			
	
			
			Kosmos and BP to initiate engagement on activities under the Exploration Partnering Agreement (EPA)

		
			 
		

		
			Period: Post-Close
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Transfer Operatorship to BP with effect from Operator Transfer Date and execute transition plan 

			
	
			
				 ·
			

			
	
			
			Kosmos becomes Technical Operator and maintains: 

		
			oIts presence in Country with Country offices and Country Managers
		

		
			oIts key government and NOC relationships in both countries
		

			
	
			
				 ·
			

			
	
			
			Kosmos is represented in all  key meetings with the governments and national oil companies and other key stakeholders

			
	
			
				 ·
			

			
	
			
			BP to initiate set up in Country Presence in line with the transition with support from Kosmos

		
			
		

		
			

		 

		

			15

		

 

		

			 

		

		

		
			EXHIBIT L
		

		
			Questions and Answers
		

		
			
		

		
			

		 

		

			16

		

 

		

			 

		

		

		
			EXHIBIT M
		

		
			ABC Obligations
		

		
			 
		

		
			1.        Neither Party nor any of its Affiliates nor their respective Associated Persons:
		

		
			 
		

		
			(i)        has been, is or will be engaged in any activity, practice or conduct related to the Interest Documents or to this Agreement that would constitute a violation of the Anti-Corruption Laws and Obligations either with respect to itself or with respect to the other Party;
		

		
			 
		

		
			(ii)       has paid, offered, promised or authorized, or will pay, offer, promise or authorize, the payment, directly or indirectly, of any monies or anything of value to any Government Official (as defined in the Joint Operating Agreements), for the purpose of improperly influencing any act or decision of such  Government Official or improperly inducing such Government Official to use his or her influence with a government or instrumentality thereof to obtain or retain business or direct business to any Person in connection with the Interest Documents or this Agreement; or 
		

		
			 
		

		
			(iii)      has been or is  the subject of any investigation, inquiry or enforcement proceedings by any government, administrative or regulatory body regarding any offence or alleged offence under the Anti-Corruption Laws and Obligations related to the Interest Documents or this Agreement, and no such investigation, inquiry or proceedings has been or will be threatened, and to the best of such Party’s knowledge, information and belief (after making reasonable enquiries) there are no circumstances likely to give rise to any such investigation, inquiry or proceedings.
		

		
			 
		

		
			2.        Each Party shall as soon as possible notify the other Parties of any suspected violations, including any investigation or proceeding initiated by a governmental authority relating to an alleged violation of applicable Anti-Corruption Laws and Obligations by such Party, or its Affiliates, or any Associated Persons, concerning operations and activities under the JOA and the Contracts. Such Party shall use reasonable efforts to keep the other Parties informed as to the progress and disposition of such investigation or proceeding, except that such Party shall not be obligated to disclose to the other Parties any information that would be considered legally privileged. 
		

		
			 
		

		
			3.        Each Party shall defend, indemnify and hold harmless the other Parties for any claims, damages, losses, penalties, costs (including reasonable legal costs and attorneys’ fees), and liabilities arising from, or related to: 
		

		
			 
		

		
			(a)       any breach by such Party of the warranties and undertakings set out in paragraph 1; 
		

		
			 
		

		
			(b)       such Party’s admission of allegations made by a governmental authority concerning operations and/or activities under this Agreement or the Interest Documents (or any agreements relating thereto) that such Party or its Associated Persons have violated Anti-Corruption Laws and Obligations applicable to such Party; or 
		

		
			 
		

		
			(c)       the final adjudication concerning operations and/or activities under this Agreement or the Interest Documents (or any agreements relating hereto) that such Party or its Affiliates or their directors, officers, employees and personnel have violated Anti-Bribery Laws and Obligations applicable to such Party, such indemnity obligations shall survive termination or expiration of this Agreement.    
		

		
			 
		

		
			4.          Each Party undertakes to each other Party that, to the extent it has not already done so, it shall: 
		

		
			 
		

		
			(a)        Devise and maintain adequate internal controls concerning such Party’s undertakings under paragraph 1; 
		

		
			 
		

		
			
		

		
			

		 

		

			17

		

 

		

			 

		

		

		
			 
		

		
			(b)       design, implement and maintain comprehensive, “best practice” written policies, resources and procedures to ensure compliance with applicable Anti-Corruption Laws and Obligations and which will address, without limitation, sponsorship and donations, gifts and entertainment, hosting of Public Officials, anti-money laundering, whistle-blowing and responding to demands for improper payments or allegations of bribery, in each case in connection with the activities and operations conducted under or in relation to the Interest Documents and this Agreement (“Anti-Corruption Policies”); and
		

		
			 
		

		
			(c)       Retain books and records evidencing compliance with these paragraphs 1 -7 for a period of at least six (6) Calendar Years. 
		

		
			 
		

		
			5.        Each Party shall promptly respond in reasonable detail to any reasonable request from any other Party concerning a notice sent by such Party under paragraph 2 and shall furnish applicable documentary support for such Party’s response, including showing such Party’s compliance with the undertakings set out in paragraph 1.
		

		
			 
		

		
			6.        Each Party warrants that in connection with the Joint Operations it shall obligate any contractor, including but not limited to any sub-agent, representative or other service provider it may engage, that:
		

		
			 
		

		
			(a)       it will conduct appropriate due diligence prior to appointing or engaging such contractor to reasonably assure itself that they are duly qualified to perform the tasks for which they will be engaged and that they are of good reputation; and
		

		
			 
		

		
			(b)       it will impose and secure from the contractor when appropriate given the risk, in writing compliance with the Anti-Corruption Laws and Obligations or a similar obligation.
		

		
			 
		

		
			7.        Each Party undertakes to the other Party that, from time to time and at the reasonable request of each other Party, it shall:
		

		
			 
		

		
			(a)       provide written certification (by providing a certificate of compliance in the form agreed between the Parties and attached at Appendix A and signed by its authorized representative)) that it has complied with its undertakings under paragraph 1; and
		

		
			 
		

		
			(b)       in support of such compliance, provide the other Party with reasonable access to its personnel and to the facilities, warehouses and offices directly or indirectly serving the operation of the JOA and the Contracts and the books, records and other information relating to the JOA and the Contracts, together with the right, where reasonably requested, to make and retain copies of such books, records and information.
		

		
			
		

		
			

		 

		

			18

		

 

		

			 

		

		

		
			Appendix A
		

		
			 
		

		
			FORM OF CERTIFICATE OF ANTI-BRIBERY COMPLIANCE
		

		
			 
		

		
			[Certifying Party Letterhead]
		

		
			 
		

		
			To:     [.......................], [.......................], [.......................], and [.......................]
		

		
			 
		

		
			Re:     Periodic Certification
		

		
			 
		

		
			Dear Sir,
		

		
			 
		

		
			Pursuant to paragraph 7 of Exhibit M of the Farm out Agreement dated [.......................] between Kosmos Energy Mauritania, and BP Exploration (West Africa) Limited (“Agreement”), the undersigned hereby confirms that throughout the twelve (12) months ending 31st December [.......................], [Certifying Party], its Affiliates and their respective directors, officers, employees and personnel, have complied with their warranties and covenants set out in paragraph 1 of Exhibit M of the Agreement.
		

		
			 
		

		
			The certificate is issued by the undersigned duly authorized representative for and on behalf of [Certifying Party] to the best of his or her knowledge after having made due enquiry as to the matters set out above, but without personal liability on the part of such authorized representative.
		

		
			 
		

		
			Yours faithfully,
		

		
			 
		

		
			 
		

		
			Name and Title:...................................................................................................
		

		
			[an executive director or officer of Certifying Party]
		

		
			
		

		
			

		 

		

			19

		

 

		

			 

		

		

		
			EXHIBIT N
		

		
			Farmor Retained Liabilities
		

		
			 
		

		
			Farmor retains responsibility for payment of the signature bonus for Block C6.
		

		
			 
		

		
			There are no other Farmor Retained Liabilities.
		

		 

		

			20kos_Ex10-64

		

			Exhibit 10.64

		

		
			KOSMOS ENERGY LTD.
		

		
			LONG TERM INCENTIVE PLAN
(amended and restated as of January 23, 2017)
		

		

		
			TABLE OF CONTENTS
		

		
			Page
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Section 1.

					
					
						Purpose

					
1
				
	
					
						Section 2.

					
					
						Definitions

					
1
				
	
					
						Section 3.

					
					
						Eligibility

					
6
				
	
					
						Section 4.

					
					
						Administration

					
6
				
	
					
						Section 5.

					
					
						Shares Available for Awards

					
7
				
	
					
						Section 6.

					
					
						Options

					
8
				
	
					
						Section 7.

					
					
						Stock Appreciation Rights

					
9
				
	
					
						Section 8.

					
					
						Restricted Stock and RSUs

					
9
				
	
					
						Section 9.

					
					
						Performance Awards

					
10
				
	
					
						Section 10.

					
					
						Other Stock-Based Awards

					
11
				
	
					
						Section 11.

					
					
						Effect of Termination of Service or a Change in Control on Awards

					
12
				
	
					
						Section 12.

					
					
						General Provisions Applicable to Awards

					
12
				
	
					
						Section 13.

					
					
						Amendments and Termination

					
13
				
	
					
						Section 14.

					
					
						Miscellaneous

					
14
				
	
					
						Section 15.

					
					
						Effective Date of the Plan

					
15
				
	
					
						Section 16.

					
					
						Term of the Plan

					
15
				
	
					
						Section 17.

					
					
						Cancellation or “Clawback” of Awards

					
16
				
	
					
						Section 18.

					
					
						Section 409A of the Code

					
16
				

		
			 
		

		

		
			 
		

		
			 
		

		
			

		 

 

		

			Exhibit 10.64

		

		

		
			Kosmos Energy Ltd.
		

		
			Long Term Incentive Plan
(amended and restated as of January 23, 2017)
		

		
			Section 1.   Purpose.  The purpose of the Kosmos Energy Ltd. Long Term Incentive Plan (the “Plan”) is to motivate and reward those employees and other individuals who are expected to contribute significantly to the success of Kosmos Energy Ltd. (the “Company”) and its Affiliates to perform at the highest level and to further the best interests of the Company and its shareholders.    
		

		
			Section 2.   Definitions.  As used in the Plan, the following terms shall have the meanings set forth below:
		

		
			(a)   “Affiliate” means, except as provided in Section 2(h), (i) any entity that, directly or indirectly, is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, in each case as determined by the Committee.
		

		
			(b)   “Award” means any Option, SAR, Restricted Stock, RSU, Performance Award, Other Stock-Based Award granted under the Plan.
		

		
			(c)   “Award Document” means any agreement, contract or other instrument or document evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant.
		

		
			(d)   “Beneficial Owner” has the meaning ascribed to such term in Rule 13d-3 under the Exchange Act.
		

		
			(e)   “Beneficiary” means a Person entitled to receive payments or other benefits or exercise rights that are available under the Plan in the event of a Participant’s death.  If no such Person is or can be named by such Participant, or if no Beneficiary designated by such Participant is eligible to receive payments or other benefits or exercise rights that are available under the Plan at such Participant’s death, such Participant’s Beneficiary shall be such Participant’s estate.  
		

		
			(f)   “Board” means the board of directors of the Company.
		

		
			(g)   “Cause” means, with respect to any Participant, “cause” as defined such Participant’s Employment Agreement, if any, or if not so defined, except as otherwise provided in such Participant’s Award Document, such Participant’s:
		

		
			(i)    failure to perform his or her duties to the Company or any Affiliate (other than any such failure resulting from his or her physical or mental incapacity); 
		

		
			(ii)   having engaged in misconduct, negligence or a breach of fiduciary duty, or breach of any applicable Employment Agreement; 
		

		
			
		

		
			

		 

 

		

		
			(iii)  having been convicted of, or having entered a plea bargain or settlement admitting guilt or the imposition of unadjudicated probation for, any crime of moral turpitude or felony under any applicable law; 
		

		
			(iv)   breach of any restrictive covenant to which he or she is subject contained in any applicable Employment Agreement or other agreement with the Company or any Affiliate; 
		

		
			(v)    breach of any policy of the Company or any Affiliate, including without limitation any such policy that relates to expense management, human resources or the Foreign Corrupt Practices Act; 
		

		
			(vi)   unlawful use or possession of illegal drugs on the premises of the Company or any Affiliate or while performing his or her duties to the Company or any Affiliate; or 
		

		
			(vii)  commission of an act of fraud, embezzlement or misappropriation, in each case, against the Company or any Affiliate.
		

		
			(h)   “Change in Control”  means the occurrence of any one or more of the following events:
		

		
			(i)    any Person (other than the Initial Investors (as defined below), the Company, any trustee or other fiduciary holding securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the shareholders of the Company immediately prior to the occurrence with respect to which the evaluation is being made in substantially the same proportions as their ownership of the common shares of the Company) becomes the Beneficial Owner (except that a Person shall be deemed to be the Beneficial Owner of all shares that any such Person has the right to acquire pursuant to any agreement or arrangement or upon exercise of conversion rights, warrants or options or otherwise, without regard to the 60-day period referred to in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities;
		

		
			(ii)   during any period of 12 consecutive months, individuals who at the beginning of such period constitute the Board, and any new director whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of such 12-month period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the Board;
		

		
			(iii)   the consummation of a merger, amalgamation or consolidation of the Company with any other entity, other than a merger, amalgamation or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving or resulting entity) more than 50% of the combined 
		

		
			
		

		
			

		 

		

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			voting power of the surviving or resulting entity outstanding immediately after such merger, amalgamation or consolidation; or
		

		
			(iv)   the consummation of a transaction (or series of transactions within a 12-month period) that constitutes the sale or disposition of all or substantially all of the consolidated assets of the Company having a gross fair market value of 50% or more of the total gross fair market value of all of the consolidated assets of the Company (other than such a sale or disposition immediately after which such assets will be owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of the common shares of the Company immediately prior to such sale or disposition), and the subsequent distribution of the proceeds from such transaction (or series of transactions) to the Company’s shareholders having a fair market value that is greater than 50% of the fair market value of the Company and its subsidiaries immediately prior to such transaction (or series of transactions).
		

		
			For purposes of clause (i) above, “Initial Investors” means the “Blackstone Group,” the “Warburg Group” and their respective “Affiliates” (as all such terms are defined in that certain Shareholders Agreement dated as of May 10, 2011, by and among the Company and the other parties thereto).
		

		
			(i)   “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance thereunder.  Any reference to a provision in the Code shall include any successor provision thereto.
		

		
			(j)   “Committee” means the Compensation Committee of the Board or such other committee as may be designated by the Board.  If the Board does not designate the Committee, references herein to the “Committee” shall refer to the Board.
		

		
			(k)   “Covered Employee” means an individual who is, for a given fiscal year of the Company, (i) a “covered employee” within the meaning of Section 162(m) of the Code or (ii) designated by the Committee by not later than 90 days following the start of such year (or such other time as may be required or permitted by Section 162(m) of the Code) as an individual whose compensation for such fiscal year may be subject to the limit on deductible compensation imposed by Section 162(m) of the Code.
		

		
			(l)   “Disability” means, with respect to any Participant, “disability” as defined in such Participant’s Employment Agreement, if any, or if not so defined, except as otherwise provided in such Participant’s Award Document, at any time that the Company or any Affiliate sponsors a long-term disability plan that covers such Participant, “disability” as defined in such plan for the purpose of determining such Participant’s eligibility for benefits; provided that if such plan contains multiple definitions of disability, then “Disability” shall refer to that definition of disability which, if Participant qualified for such benefits, would provide coverage for the longest period.  The determination of whether Participant has a Disability shall be made by the person or persons required to make final disability determinations under such plan.  At any time that the Company and the Affiliates do not sponsor a long-term disability plan that covers such Participant, Disability shall mean Participant’s physical or mental incapacity that renders him or 
		

		
			
		

		
			

		 

		

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			her unable for a period of 90 consecutive days or an aggregate of 120 days in any consecutive 12-month period to perform his or her duties to the Company or any Affiliate.
		

		
			(m)  “Employment Agreement” means any employment, severance, consulting or similar agreement between the Company or any of its Affiliates and a Participant.
		

		
			(n)   “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules, regulations and guidance thereunder.  Any reference to a provision in the Exchange Act shall include any successor provision thereto.
		

		
			(o)   “Exchange Awards” means the Awards of Restricted Stock granted in exchange for unvested profit units in Kosmos Energy Holdings in connection with the initial public offering of the Shares.
		

		
			(p)   “Fair Market Value” means, with respect to Shares, the closing price of a Share on the date in question (or, if there is no reported sale on such date, on the last preceding date on which any reported sale occurred) on the principal stock market or exchange on which the Shares are quoted or traded, or if Shares are not so quoted or traded, fair market value as determined by the Committee, and with respect to any property other than Shares, the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee.
		

		
			(q)   “Good Reason” means, with respect to any Participant, “good reason” as defined in such Participant’s Employment Agreement, if any, or if not so defined, except as otherwise provided in such Participant’s Award Document, the occurrence of any of the following events, in each case without such Participant’s consent:
		

		
			(i)    a reduction in such Participant’s base salary or target bonus, other than any such reduction that applies generally to similarly situated employees of the Company and the Affiliates; 
		

		
			(ii)   relocation of the geographic location of such Participant’s principal place of employment by more than 50 miles; or
		

		
			(iii)  a material reduction in such Participant’s duties or responsibilities that occurs within two years following a Change in Control;
		

		
			provided that, in each case, (A) such Participant shall provide the Company with written notice specifying the circumstances alleged to constitute Good Reason within 90 days following the first occurrence of such circumstances, (B) the Company shall have 30 days following receipt of such notice to cure such circumstances, and (C) if the Company has not cured such circumstances within such 30-day period, then the date of such Participant’s Termination of Service must occur not later than 60 days after the end of such 30-day period.
		

		
			(r)   “Incentive Stock Option” means an option representing the right to purchase Shares from the Company, granted pursuant to Section 6, that meets the requirements of Section 422 of the Code. 
		

		
			
		

		
			

		 

		

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			(s)   “Intrinsic Value” means, with respect to an Option or SAR Award, the product of (i) the excess, if any, of (A) the price or implied price per Share in a Change in Control or other event over (B) the exercise or hurdle price of such Award multiplied by (ii) the number of Shares covered by such Award.
		

		
			(t)   “Lock Up Agreement” means any agreement between the Company or any of its Affiliates and a Participant that provides for restrictions on the transfer of Shares held by such Participant.
		

		
			(u)   “Non-Qualified Stock Option” means an option representing the right to purchase Shares from the Company, granted pursuant to Section 6, that is not an Incentive Stock Option.
		

		
			(v)   “Option” means an Incentive Stock Option or a Non-Qualified Stock Option.
		

		
			(w)  “Other Stock-Based Award” means an Award granted pursuant to Section 10.
		

		
			(x)   “Participant” means the recipient of an Award granted under the Plan.
		

		
			(y)   “Performance Award” means an Award granted pursuant to Section 9.
		

		
			(z)   “Performance Period” means the period established by the Committee at the time any Performance Award is granted or at any time thereafter during which any performance goals specified by the Committee with respect to such Award are measured.
		

		
			(aa)  “Person” has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including “group” as defined in Section 13(d) thereof.
		

		
			(bb)  “Replacement Award” means an Award granted in assumption of, or in substitution for, an outstanding award previously granted by a company or other business acquired by the Company or with which the Company combines.
		

		
			(cc)  “Restricted Stock” means any Share granted pursuant to Section 8.
		

		
			(dd)  “RSU” means a contractual right granted pursuant to Section 8 that is denominated in Shares.  Each RSU represents a right to receive the value of one Share (or a percentage of such value) in cash, Shares or a combination thereof.  Awards of RSUs may include the right to receive dividend equivalents. 
		

		
			(ee)  “SAR” means any right granted pursuant to Section 7 to receive upon exercise by a Participant or settlement, in cash, Shares or a combination thereof, the excess of (i) the Fair Market Value of one Share on the date of exercise or settlement over (ii) the exercise or hurdle price of the right on the date of grant, or if granted in connection with an Option, on the date of grant of the Option.
		

		
			(ff)  “Section 162(m) Compensation” means “qualified performance-based compensation” under Section 162(m) of the Code.
		

		
			
		

		
			

		 

		

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			(gg)  “Shares” means shares of the Company’s common shares.
		

		
			(hh)  “Termination of Service” means, with respect to any Participant:
		

		
			(i)    the cessation of all services performed by such Participant for the Company and the Affiliates, including by reason of death or Disability; or 
		

		
			(ii)   the permanent decrease in the level of services performed by such Participant for the Company and the Affiliates (whether as an employee or as an independent contractor) to no more than 20 percent of the average level of services performed (whether as an employee or an independent contractor) over the immediately preceding 36-month period (or the full period of services to the Company and the Affiliates, if such Participant has been providing such services for less than 36 months).
		

		
			Section 3.   Eligibility.
		

		
			(a)   Any employee, non-employee director, consultant or other advisor of, or any other individual who provides services to, the Company or any Affiliate shall be eligible to be selected to receive an Award under the Plan.
		

		
			(b)   Holders of options and other types of awards granted by a company acquired by the Company or with which the Company combines are eligible for grants of Replacement Awards under the Plan. 
		

		
			Section 4.   Administration.
		

		
			(a)   The Plan shall be administered by the Committee.  The Committee shall be appointed by the Board and shall consist of not fewer than three directors of the Board.  All decisions of the Committee shall be final, conclusive and binding upon all parties, including the Company, its shareholders, Participants and any Beneficiaries thereof. The Committee may issue rules and regulations for the administration of the Plan. It shall meet at such times and places as it may determine. 
		

		
			(b)   To the extent necessary to comply with applicable regulatory regimes, any action by the Committee shall require the approval of Committee members who are (i) independent, within the meaning of and to the extent required by applicable rulings and interpretations of the applicable stock market or exchange on which the Shares are quoted or traded; (ii) a non-employee director within the meaning of Rule 16b-3 under the Exchange Act; and (iii) an outside director pursuant to Section 162(m) of the Code.  The Board may designate one or more directors as alternate members of the Committee who may replace any absent or disqualified member at any meeting of the Committee.  To the extent permitted by applicable law, the Committee may delegate to one or more officers of the Company the authority to grant Awards, except that such delegation shall not be applicable to any Award for a Person then covered by Section 16 of the Exchange Act, and the Committee may delegate to one or more committees of the Board (which may consist of solely one director) the authority to grant all types of Awards, in accordance with applicable law.  
		

		
			
		

		
			

		 

		

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			(c)   Subject to the terms of the Plan and applicable law, the Committee (or its delegate) shall have full power and authority to:  (i) designate Participants; (ii) determine the type or types of Awards (including Replacement Awards) to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights or other matters are to be calculated in connection with) Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent and under what circumstances Awards may be settled or exercised in cash, Shares, other Awards, other property, net settlement, or any combination thereof, or canceled, repurchased, forfeited or suspended, and the method or methods by which Awards may be settled, exercised, canceled, repurchased, forfeited or suspended; (vi) determine whether, to what extent and under what circumstances cash, Shares, other Awards, other property and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (vii) amend the terms or conditions of any outstanding Awards, including without limitation to accelerate the time or times at which the Awards become vested or unrestricted, will be settled or may be exercised; (viii) correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Document, in the manner and to the extent it shall deem desirable to carry the Plan into effect; (ix) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan; (x) establish, amend, suspend or waive such rules and regulations and appoint such agents and advisors and determine the terms of such appointments, in each case as it shall deem appropriate for the proper administration of the Plan and due compliance with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations; and (xi) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan and due compliance with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations.  Notwithstanding anything to the contrary contained herein, the Board may, in its sole discretion, at any time and from time to time, grant Awards or administer the Plan.  In any such case, the Board shall have all of the authority and responsibility granted to the Committee herein. 
		

		
			Section 5.   Shares Available for Awards.
		

		
			(a)   Subject to adjustment as provided in Section 5(c) and except for Replacement Awards and Exchange Awards, the maximum number of Shares available for issuance under the Plan shall not exceed 39,503,000 Shares in the aggregate, which includes (i) the initial reserve of 24,503,000 Shares under the Plan and (ii) an increase of 15,000,000 Shares, as approved by the Board, subject to approval by the Company’s shareholders.
		

		
			(b)   Any Shares subject to an Award (other than a Replacement Award or Exchange Award) that expires, is canceled, repurchased or forfeited or otherwise terminates, without the delivery of such Shares, including (i) the number of Shares surrendered or withheld in payment of any grant, purchase, exercise or hurdle price of an Award or taxes related to an Award and (ii) any Shares subject to an Award to the extent that Award is settled without the issuance of Shares, shall again be, or shall become, available for issuance under the Plan.
		

		
			(c)   In the event that the Committee determines that, as a result of any dividend or other distribution (whether in the form of cash, Shares or other securities, but excluding any ordinary cash dividend), recapitalization, stock split, reverse stock split, reorganization, merger, 
		

		
			
		

		
			

		 

		

			7

		

 

		

		
			amalgamation, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, issuance of Shares pursuant to the anti-dilution provisions of securities of the Company, or other similar corporate transaction or event affecting the Shares, or of changes in applicable laws, regulations or accounting principles, an adjustment is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, subject to compliance with Section 409A of the Code, adjust equitably any or all of:
		

		
			(i)    the number and type of Shares (or other securities) which thereafter may be made the subject of Awards, including the aggregate limit specified in Section 5(a) and the individual limits specified in Section 5(e);
		

		
			(ii)   the number and type of Shares (or other securities) subject to outstanding Awards; and 
		

		
			(iii)  the grant, purchase, exercise or hurdle price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; 
		

		
			provided, however, that the number of Shares subject to any Award denominated in Shares shall always be a whole number.
		

		
			(d)   Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or Shares acquired by the Company.
		

		
			(e)   No Participant may receive under the Plan in any calendar year, subject to adjustment as provided in ‎Section 5(c):  (i) Options and SARs that relate to more than 3,950,300 Shares in the aggregate; (ii) Restricted Stock and RSUs that relate to more than 3,950,300 Shares in the aggregate; (iii) Share-based Performance Awards and Other Stock-Based Awards that relate to more than 3,950,300 Shares in the aggregate; and (iv) cash-based Performance Awards that relate to more than $15,000,000 in the aggregate.
		

		
			Section 6.   Options.    The Committee is authorized to grant Options to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:
		

		
			(a)   The exercise price per Share under an Option shall be determined by the Committee; provided,  however, that, except in the case of Replacement Awards, and subject to Section 6(e), such exercise price shall not be less than the Fair Market Value of a Share on the date of grant of such Option.
		

		
			(b)   The term of each Option shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such Option.
		

		
			(c)   The Committee shall determine the time or times at which an Option may be exercised in whole or in part.
		

		
			
		

		
			

		 

		

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			(d)   The Committee shall determine the method or methods by which, and the form or forms, including cash, Shares, other Awards, other property, net settlement, broker-assisted cashless exercise or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which payment of the exercise price with respect thereto may be made or deemed to have been made. 
		

		
			(e)   The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code.  
		

		
			Section 7.   Stock Appreciation Rights.  The Committee is authorized to grant SARs to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine: 
		

		
			(a)   SARs may be granted under the Plan to Participants either alone (“freestanding”) or in addition to other Awards granted under the Plan (“tandem”) and may, but need not, relate to a specific Option granted under Section 6.
		

		
			(b)   The exercise or hurdle price per Share under a SAR shall be determined by the Committee; provided,  however, that, except in the case of Replacement Awards, such exercise or hurdle price shall not be less than the Fair Market Value of a Share on the date of grant of such SAR.
		

		
			(c)   The term of each SAR shall be fixed by the Committee but shall not exceed 10 years from the date of grant of such SAR.
		

		
			(d)   The Committee shall determine the time or times at which a SAR may be exercised or settled in whole or in part. 
		

		
			Section 8.   Restricted Stock and RSUs.  The Committee is authorized to grant Awards of Restricted Stock and RSUs to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine: 
		

		
			(a)   Shares of Restricted Stock and RSUs shall be subject to such restrictions as the Committee may impose (including any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend, dividend equivalent or other right), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate.
		

		
			(b)   Any Share of Restricted Stock granted under the Plan shall be evidenced by entry in the register of members of the Company and in such other manner as the Committee may deem appropriate, including issuance of a share certificate or certificates.  In the event any share certificate is issued in respect of shares of Restricted Stock granted under the Plan, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock.
		

		
			
		

		
			

		 

		

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			(c)   If the Committee intends that an Award granted under this Section 8 shall constitute or give rise to Section 162(m) Compensation, then, to the extent the Committee determines the following to be necessary under Section 162(m) of the Code, such Award may be structured in accordance with the requirements of Section 9, including the performance criteria set forth therein and the Award limitation set forth in Section 5(e), and any such Award shall be considered a Performance Award for purposes of the Plan.
		

		
			(d)   The Committee may provide in an Award Document that an Award of Restricted Stock is conditioned upon the Participant making or refraining from making an election with respect to the Award under Section 83(b) of the Code.  If a Participant makes an election pursuant to Section 83(b) of the Code with respect to an Award of Restricted Stock, such Participant shall be required to file promptly a copy of such election with the Company and the applicable Internal Revenue Service office.
		

		
			Section 9.   Performance Awards.  The Committee is authorized to grant Performance Awards to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:
		

		
			(a)   Performance Awards may be denominated as a cash amount, number of Shares or a combination thereof and are Awards which may be earned upon achievement or satisfaction of performance conditions specified by the Committee.  In addition, the Committee may specify that any other Award shall constitute a Performance Award by conditioning the right of a Participant to exercise the Award or have it settled, and the timing thereof, upon achievement or satisfaction of such performance conditions as may be specified by the Committee.  The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions.  Subject to the terms of the Plan, the performance goals to be achieved during any Performance Period, the length of any Performance Period, the amount of any Performance Award granted and the amount of any payment or transfer to be made pursuant to any Performance Award shall be determined by the Committee. 
		

		
			(b)   Every Performance Award shall, if the Committee intends that such Award qualify as Section 162(m) Compensation and the Committee determines the following to be necessary under Section 162(m) of the Code, include a pre-established formula, such that payment, retention or vesting of the Award is subject to the achievement during a Performance Period or Performance Periods, as determined by the Committee, of a level or levels of, or increases in, in each case as determined by the Committee, one or more of the following performance measures with respect to the Company: captured prospects, prospecting licenses signed, operated prospects matured to drill ready, drilling programs commenced, drillable prospects, capabilities and critical path items established, operating budget, third-party capital sourcing, captured net risked resource potential, acquisition cost efficiency, acquisitions of oil and gas interests, increases in proved, probable or possible reserves, finding and development costs, recordable or lost time incident rates, overhead costs, general and administration expense, market price of a Share, cash flow, reserve value, net asset value, earnings, net income, operating income, cash from operations, revenue, margin, EBITDA (earnings before interest, taxes, depreciation and amortization), EBITDAX (earnings before interest, taxes, depreciation, amortization and exploration expense), net capital employed, return on assets, shareholder return, reserve 
		

		
			

		 

		

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			replacement, return on equity, return on capital employed, production, assets, unit volume, sales, market share, market capitalization, enterprise value, economic value added or strategic business criteria consisting of one or more objectives based on meeting specified goals relating to acquisitions or divestitures, each as determined in accordance with generally accepted accounting principles, where applicable, as consistently applied by the Company.  Performance criteria may be measured on an absolute (e.g., plan or budget) or relative basis, may be established on a corporate-wide basis or with respect to one or more business units, divisions, subsidiaries or business segments, may be based on a ratio or separate calculation of any performance criterion and may be made relative to an index or one or more of the performance goals themselves.  Relative performance may be measured against a group of peer companies, a financial market index or other acceptable objective and quantifiable indices.  Except in the case of an Award intended to qualify as Section 162(m) Compensation, if the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which the Company conducts its business, or other events or circumstances render the performance objectives unsuitable, the Committee may modify the performance objectives or the related minimum acceptable level of achievement, in whole or in part, as the Committee deems appropriate and equitable.  Performance measures may vary from Performance Award to Performance Award and from Participant to Participant, and may be established on a stand-alone basis, in tandem or in the alternative.  The Committee shall have the power to impose such other restrictions on Awards subject to this Section 9(b) as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for Section 162(m) Compensation or of any applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations.  Notwithstanding any provision of the Plan to the contrary, with respect to any Award intended to qualify as Section 162(m) Compensation, the Committee shall not be authorized to increase the amount payable under any Award to which this Section 9(b) applies upon attainment of such pre‐established formula.
		

		
			(c)   Settlement of Performance Awards shall be in cash, Shares, other Awards, other property, net settlement, or any combination thereof, as determined in the discretion of the Committee.  
		

		
			(d)   Performance Awards that are intended to qualify as Section 162(m) Compensation shall be settled only after the end of the relevant Performance Period.  The Committee may, in its discretion, increase or reduce the amount of a settlement otherwise to be made in connection with a Performance Award but, to the extent required by Section 162(m) of the Code, may not exercise discretion to increase any amount payable to a Covered Employee in respect of a Performance Award intended to qualify as Section 162(m) Compensation.  Any settlement that changes the form of payment from that originally specified shall be implemented in a manner such that the Performance Award and other related Awards do not, solely for that reason, fail to qualify as Section 162(m) Compensation.  The Committee shall specify the circumstances in which, and the extent to which, Performance Awards shall be paid or forfeited, including by way of repurchase by the Company at par value, in the event of a Participant’s Termination of Service.
		

		
			Section 10.   Other Stock-Based Awards.  The Committee is authorized, subject to limitations under applicable law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or 
		

		
			
		

		
			

		 

		

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			related to, Shares or factors that may influence the value of Shares, including convertible or exchangeable debt securities, other rights convertible or exchangeable into Shares, purchase rights for Shares, Awards with value and payment contingent upon performance of the Company or business units thereof or any other factors designated by the Committee.  Shares delivered pursuant to an Award in the nature of a purchase right granted under this Section 10 shall be purchased for such consideration, and paid for at such times, by such methods and in such forms, including cash, Shares, other Awards, other property, net settlement, broker-assisted cashless exercise or any combination thereof, as the Committee shall determine. Cash awards, as an element of or supplement to any other Award under the Plan, may also be granted pursuant to this Section 10. 
		

		
			Section 11.   Effect of Termination of Service or a Change in Control on Awards.
		

		
			(a)   The Committee may provide, by rule or regulation or in any Award Document, or may determine in any individual case, the circumstances in which, and the extent to which, an Award may be exercised, settled, vested, paid or forfeited, including by way of repurchase by the Company at par value, in the event of the Participant’s Termination of Service prior to the end of a Performance Period or vesting, exercise or settlement of such Award.
		

		
			(b)   The Committee may set forth the treatment of an Award upon a Change in Control in the applicable Award Document.  
		

		
			(c)   In the case of an Option or SAR Award, except as otherwise provided in the applicable Award Document, upon a Change in Control, a merger or consolidation involving the Company or any other event with respect to which the Committee deems it appropriate, the Committee may cause such Award to be canceled in consideration of (i) the full acceleration of such Award and either (A) a period of at least ten days prior to such Change in Control to exercise the Award or (B) a payment in cash or other consideration to such Participant who holds such Award in an amount equal to the Intrinsic Value of such Award (which may be equal to but not less than zero), which, if in excess of zero, shall be payable upon the effective date of such Change in Control, merger, consolidation or other event or (ii) a substitute award (which immediately upon grant shall have an Intrinsic Value equal to the Intrinsic Value of such Award).
		

		
			Section 12.   General Provisions Applicable to Awards.
		

		
			(a)   Awards shall be granted for such cash or other consideration, if any, as the Committee determines; provided that in no event shall Awards be issued for less than such minimal consideration as may be required by applicable law.
		

		
			(b)   Awards may, in the discretion of the Committee, be granted either alone or in addition to or in tandem with any other Award or any award granted under any other plan of the Company.  Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company, may be granted either at the same time as or at a different time from the grant of such other Awards or awards.
		

		
			(c)   Subject to the terms of the Plan, unless otherwise provided in the applicable Award Document, the Committee shall determine, in its sole discretion, whether payments or transfers 
		

		
			
		

		
			

		 

		

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			to be made by the Company upon the grant, exercise or settlement of an Award shall be made in the form of cash, Shares, other Awards, other property, net settlement, or any combination thereof, as determined by the Committee in its discretion at the time of grant, and whether such payments or transfers shall be made in a single payment or transfer, in installments or on a delayed basis, in each case in accordance with rules and procedures established by the Committee.  Such rules and procedures may include provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred payments.
		

		
			(d)   No Award and no right under any Award shall be assignable, alienable, saleable or transferable by a Participant otherwise than by will or pursuant to Section 12(e), and during a Participant’s lifetime, each Award, and each right under any Award, shall be exercisable only by such Participant or, if permissible under applicable law, by such Participant’s guardian or legal representative; provided that the foregoing restrictions shall not apply to any Award (other than an Incentive Stock Option) to the extent authorized by the Committee or as specifically provided in an Award Document.  The provisions of this Section 12(d) shall not apply to any Award that has been fully exercised or settled, as the case may be, and shall not preclude forfeiture, including by way of repurchase by the Company at par value, of an Award in accordance with the terms thereof.
		

		
			(e)   A Participant may designate a Beneficiary or change a previous Beneficiary designation at such times prescribed by the Committee by using forms and following procedures approved or accepted by the Committee for that purpose.    
		

		
			(f)   All certificates for Shares and/or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations and other requirements of the Securities and Exchange Commission, any stock market or exchange upon which such Shares or other securities are then quoted, traded or listed, and any applicable securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.
		

		
			(g)   The Committee may impose restrictions on any Award with respect to non-competition, confidentiality and other restrictive covenants as it deems necessary or appropriate in its sole discretion.
		

		
			Section 13.   Amendments and Termination.
		

		
			(a)   Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Document or in the Plan, the Board may amend, alter, suspend, discontinue or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension, discontinuation or termination shall be made without (i) shareholder approval if such approval is required by applicable law or the rules of the stock market or exchange, if any, on which the Shares are principally quoted, traded or listed or (ii) the consent of the affected Participant, if such action would materially adversely affect the rights of such Participant under any outstanding Award, except (x) to the extent any such amendment, alteration, suspension, discontinuance or termination is made to cause the Plan to comply with 
		

		
			
		

		
			

		 

		

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			applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations or (y) to impose any “clawback” or cancellation provisions on any Awards (including any amounts or benefits arising from such Awards) in accordance with Section 17.  Notwithstanding anything to the contrary in the Plan, the Committee may amend the Plan, in such manner as may be necessary to enable the Plan to achieve its stated purposes in any jurisdiction in a tax‐efficient manner and in compliance with local rules and regulations.
		

		
			(b)   The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or Beneficiary of an Award; provided, however, that no such action shall materially adversely affect the rights of any affected Participant or holder or Beneficiary under any Award theretofore granted under the Plan, except (x) to the extent any such action is made to cause the Plan to comply with applicable law, stock market or exchange rules and regulations or accounting or tax rules and regulations or (y) to impose any “clawback” or cancellation provisions on any Awards (including any amounts or benefits arising from such Awards) in accordance with Section 17; provided,  further, that, except as provided in Section 5(c), no such action shall directly or indirectly, through cancellation and regrant or any other method, reduce, or have the effect of reducing, the exercise price of any Award established at the time of grant thereof; provided further, that the Committee’s authority under this Section 13(b) is limited in the case of Awards that are intended to qualify as Section 162(m) Compensation, as provided in Section 9.
		

		
			(c)   Except as provided in Section 9, the Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of events (including the events described in Section 5(c)) affecting the Company, or the financial statements of the Company, or of changes in applicable laws, regulations or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan.
		

		
			(d)   The Committee may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect.
		

		
			Section 14.   Miscellaneous.
		

		
			(a)   No employee, Participant or other Person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of employees, Participants or holders or Beneficiaries of Awards under the Plan.  The terms and conditions of Awards need not be the same with respect to each recipient.  Any Award granted under the Plan shall be a one-time Award that does not constitute a promise of future grants.  The Company, in its sole discretion, maintains the right to make available future grants under the Plan.
		

		
			(b)   The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of, or to continue to provide services to, the Company or any Affiliate.  Further, the Company or the applicable Affiliate may at any time dismiss a Participant, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in 
		

		
			
		

		
			

		 

		

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			any Award Document or in any other agreement binding the parties.  The receipt of any Award under the Plan is not intended to confer any rights on the receiving Participant except as set forth in the applicable Award Document.
		

		
			(c)   Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases.
		

		
			(d)   The Company shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other Awards, other property, net settlement, or any combination thereof) of applicable withholding taxes due in respect of an Award, its exercise or settlement or any payment or transfer under such Award or under the Plan and to take such other action (including providing for elective payment of such amounts in cash or Shares by such Participant) as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes.
		

		
			(e)   If any provision of the Plan or any Award Document is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction, or as to any Person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award Document, such provision shall be stricken as to such jurisdiction, Person or Award, and the remainder of the Plan and any such Award Document shall remain in full force and effect.  
		

		
			(f)   Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a Participant or any other Person.  To the extent that any Person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company.
		

		
			(g)   No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash or other securities shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.
		

		
			Section 15.   Effective Date of the Plan.  The Plan was originally adopted on April 28, 2011.  The Plan, as amended herein, is effective as of January 23, 2015, subject to approval by the Company’s shareholders.
		

		
			Section 16.   Term of the Plan.  No Award shall be granted under the Plan after the earliest to occur of (i) January 23, 2025, (ii) the maximum number of Shares available for issuance under the Plan have been issued or (iii) the Board terminates the Plan in accordance with Section 13(a).  However, unless otherwise expressly provided in the Plan or in an applicable Award Document, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust, suspend, discontinue or terminate any such 
		

		
			
		

		
			

		 

		

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			Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.
		

		
			Section 17.   Cancellation or “Clawback” of Awards.  The Committee shall have full authority to implement any policies and procedures necessary to comply with Section 10D of the Exchange Act and any other applicable regulatory regimes.  Notwithstanding anything to the contrary contained herein, any Awards granted under the Plan (including any amounts or benefits arising from such Awards) shall be subject to any “clawback” or recoupment policies or arrangements the Company may have in effect from time to time, and the Committee may, to the extent permitted by applicable law and stock exchange rules or by any applicable Company policy or arrangement, and shall, to the extent required by any such law, rule, policy or arrangement, cancel or require reimbursement of any Awards granted to the Participant or any Shares issued or cash received upon vesting, exercise or settlement of any such Awards or sale of Shares underlying such Awards.
		

		
			Section 18.   Section 409A of the Code.  With respect to Awards subject to Section 409A of the Code, the Plan is intended to comply with the requirements of Section 409A of the Code, and the provisions of the Plan and any Award Document shall be interpreted in a manner that satisfies the requirements of Section 409A of the Code, and the Plan shall be operated accordingly.  If any provision of the Plan or any term or condition of any Award would otherwise frustrate or conflict with this intent, the provision, term or condition shall be interpreted and deemed amended so as to avoid this conflict.  Notwithstanding anything in the Plan to the contrary, if the Board considers a Participant to be a “specified employee” under Section 409A of the Code at the time of such Participant’s “separation from service” (as defined in Section 409A of the Code), and any amount hereunder is “deferred compensation” subject to Section 409A of the Code, any distribution of such amount that otherwise would be made to such Participant with respect to an Award as a result of such “separation from service” shall not be made until the date that is six months after such “separation from service,” except to the extent that earlier distribution would not result in such Participant’s incurring interest or additional tax under Section 409A of the Code.  If an Award includes a “series of installment payments” (within the meaning of Section 1.409A-2(b)(2)(iii) of the Treasury Regulations), the Participant’s right to such series of installment payments shall be treated as a right to a series of separate payments and not as a right to a single payment, and if an Award includes “dividend equivalents” (within the meaning of Section 1.409A-3(e) of the Treasury Regulations), the Participant’s right to such dividend equivalents shall be treated separately from the right to other amounts under the Award.  Notwithstanding the foregoing, the tax treatment of the benefits provided under the Plan or any Award Document is not warranted or guaranteed, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by any Participant on account of non-compliance with Section 409A of the Code.
		

		
			 
		

		 

		

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