Document:

exv10w43

 

			
	C L I F F O R D
	 	CLIFFORD CHANCE LLP
	 	 	 
	C H A N C E
	 	EXHIBIT 10.43

EXECUTION COPY

Dated 21 February, 2007

TOREADOR RESOURCES CORPORATION

as Assignor

INTERNATIONAL FINANCE CORPORATION

as Assignee

 

SECURITY ASSIGNMENT

 

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page
	1

	 	Definitions And Interpretation
	 	 	1	 
	2

	 	Covenant To Pay
	 	 	2	 
	3

	 	Assignment
	 	 	2	 
	4

	 	Notice Of Assignment
	 	 	2	 
	5.

	 	Further Advances
	 	 	3	 
	6

	 	Assignor’s Representations
	 	 	3	 
	7

	 	Assignor’s Undertakings
	 	 	3	 
	8

	 	Enforcement
	 	 	4	 
	9.

	 	Exercise Of Rights
	 	 	4	 
	10

	 	Further Assurance
	 	 	5	 
	11

	 	Power Of Attorney
	 	 	5	 
	12

	 	Receiver
	 	 	5	 
	13

	 	Effectiveness Of Security
	 	 	6	 
	14

	 	Release Of Security
	 	 	6	 
	15

	 	Subsequent Interests And Accounts
	 	 	7	 
	16

	 	Costs And Expenses
	 	 	7	 
	17

	 	Currency Conversion
	 	 	7	 
	18.

	 	Application Of Moneys
	 	 	7	 
	19

	 	Assignment
	 	 	8	 
	20

	 	Successors
	 	 	8	 
	21

	 	Notices
	 	 	8	 
	22

	 	Governing Law And Jurisdiction
	 	 	9	 
	 
	Schedule 1            Form Of Notice Of Assignment	 	 	12	 
	 
	Schedule 2            Assigned 	 	 	 	 
	 

	 	                 Contracts
	 	 	13	 

 

 

THIS ASSIGNMENT is made as a deed on 21 February 2007.

BETWEEN:

	(1)	 	TOREADOR RESOURCES CORPORATION (the “Assignor”) of 4809 Cole Avenue, Suite 108,
Dallas, Texas 75205; and

	(2)	 	INTERNATIONAL FINANCE CORPORATION (the “Assignee”), an international organization
established by Articles of Agreement among its member countries including Romania.

IT IS AGREED as follows:

	1	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	In this Assignment:

“Assigned Contract” means any contract referred to in Schedule 2 (Assigned Contract).

“Assigned Property” means the rights and property expressed to be assigned in Clause 3.1
(Assignment).

“Collateral Rights” means all rights, powers and remedies of the Assignee provided by this
Assignment or by law.

“Loan and Guarantee Agreement” means the Loan and Guarantee Agreement dated December 28,
2006 between the Obligors and the Assignee.

“Notice of Assignment” means a notice of assignment substantially in the form of Schedule 1.

“Obligors” means Toreador Resources Corporation, Toreador Turkey Ltd., Toreador Romania
Ltd., Madison Oil France SAS (now known as Toreador France SAS), Toreador Energy France
S.C.S, and Toreador International Holding Limited Liability Company.

“Secured Obligations” means all obligations owing to the Assignee by any or all of the
Assignors and the other Obligors under or pursuant to the Loan and Guarantee Agreement,
including any liability in respect of any further advances made under the Loan and Guarantee
Agreement, whether present or future, actual or contingent (and whether incurred by the
Assignor or any Obligor alone or jointly, and whether as principal or surety or in some
other capacity).

	1.2	 	In this Assignment:

	 	(a)	 	Unless a contrary indication appears, a reference to (i) “this Assignment” is
a reference to this Assignment as amended or novated; (ii) the “Loan and Guarantee
Agreement” is a reference to the Loan and Guarantee Agreement as amended or novated;
and (iii) a “Clause” is a reference to a Clause of this Assignment.
	 
	 	(b)	 	Clause and Schedule headings are for ease of reference only.

- 1 -

 

	 	(c)	 	Any reference to an “Assignee”, an “Obligor” or the “Assignor” shall include
its and any subsequent successors and any permitted transferees in accordance with
their respective interests.
	 
	 	(d)	 	The rules of interpretation contained in Section 1.03 (Interpretation) of the
Loan and Guarantee Agreement shall apply to the construction of this Assignment.

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

	2	 	COVENANT TO PAY

The Assignor shall on demand of the Assignee discharge each of the Secured Obligations
and pay to the Assignee when due and payable each sum now or hereafter owing, due or
incurred by the Assignor in respect of the Secured Obligations.

	3	 	ASSIGNMENT

	3.1	 	The Assignor assigns absolutely and with full title guarantee to the Assignee all of its
right, title and interest, present and future, in, under and to:

	 	(a)	 	the Assigned Contract; and
	 
	 	(b)	 	any rights and claims to any compensation or other similar or special payments
in respect of any Assigned Contract or any other oil or gas concession held by it which
are payable by the government of Romania or any agency or instrumentality thereof, or
by any other person, in respect thereof,

including, in each case, without limitation, all present and future claims, causes of
action, payments and proceeds in respect thereof.

	3.2	 	The Assignee shall not be under any obligation in relation to the Assigned Property
or the Assigned Contract as a consequence of this Assignment and the Assignor shall at all
times remain liable to perform all obligations expressed to be assumed by it in respect of the
Assigned Property and the Assigned Contract.

	4	 	NOTICE OF ASSIGNMENT

	4.1	 	The Assignor shall promptly and in any event within five (5) days of the date of this
Assignment deliver to the Assignee a Notice of Assignment duly executed by or on behalf of the
Assignor and shall procure that a Notice of Assignment is acknowledged by each relevant
counterparty to the Assigned Contract listed in Part A of Schedule 2 in the form attached as
Schedule 1.

	4.2	 	The Assignor shall promptly, and in any event within five (5) days of the date of
execution of any Assigned Contract referred to in Part B of Schedule 2 deliver to the Assignee
a Notice of Assignment duly executed by or on behalf of the Assignor and shall procure that a
Notice of Assignment is acknowledged by each relevant counterparty to the Assigned Contract
listed in Part B of Schedule 2 in the form attached as Schedule 1.

- 2 -

 

	5.	 	FURTHER ADVANCES

Subject to the terms of the Loan and Guarantee Agreement, to the extent the Assignee is
under an obligation to make further advances to any Obligor, that obligation shall be deemed
to be incorporated into this Assignment as if set out in this Assignment.

	6	 	ASSIGNOR’S REPRESENTATIONS

The Assignor represents and warrants to the Assignee on the date specified above and on
each day for the duration of this Assignment that:

	 	(a)	 	the Assigned Contract is in full force and effect, enforceable in accordance
with its terms and at the date specified above it is not in breach of any term or
condition of the Assigned Contract;
	 
	 	(b)	 	there are no restrictions on the Assignor’s ability to assign all or any of
its rights under the Assigned Contract, whether contained in the Assigned Contract or
in any other document;
	 
	 	(c)	 	it is, and will be, the sole legal and beneficial owner of the Assigned
Property;
	 
	 	(d)	 	it has not sold or otherwise disposed of, or created, granted or permitted to
subsist any security interest over, all or any of its right, title and interest in the
Assigned Property;
	 
	 	(e)	 	it has the necessary power and authority to enable it to enter into and
perform its obligations under this Assignment;
	 
	 	(f)	 	this Assignment constitutes its legal, valid and binding obligation and
creates an effective security over the Assigned Property; and
	 
	 	(g)	 	all necessary authorisations and consents to enable it to enter into this
Assignment have been obtained and are in full force and effect.

	7	 	ASSIGNOR’S UNDERTAKINGS

	7.1	 	The Assignor undertakes to the Assignee for the duration of this Assignment that it
shall:

	 	(a)	 	not sell, assign, transfer or otherwise dispose of all or any part of the
Assigned Property;
	 
	 	(b)	 	not create, grant or permit to subsist any security interest over all or any
of its right, title and interest in the Assigned Property;
	 
	 	(c)	 	not do or permit to be done any act or thing which might jeopardise the rights
of the Assignee in the Assigned Property or which might adversely affect or diminish
the value of the Assigned Property;
	 
	 	(d)	 	promptly notify the Assignee of any circumstances which give rise, or may
reasonably be expected to give rise, to a claim on or under the Assigned Property;

- 3 -

 

	 	(e)	 	not vary in any material respect or rescind or amend the Assigned Contract
except with the prior written consent of the Assignee;
	 
	 	(f)	 	promptly comply with its obligations under the Assigned Contract;
	 
	 	(g)	 	not take or omit to take any action which might result in: (i) the alteration
or impairment of any rights in the Assigned Property; (ii) any default of any of its
obligations under the Assigned Contract; (iii) any right to terminate the Assigned
Contract becoming exercisable by Petrom Gas SRL; or (iv) any counterclaims or rights of
set-off arising under the Assigned Contract; and
	 
	 	(h)	 	promptly and in any event within five (5) days of the execution thereof,
notify the Assignee of the execution of any contract of the type referred to in Part B
of Schedule 2, and provide the Assignee with a certified copy thereof.

	8	 	ENFORCEMENT

	8.1	 	After the occurrence of an Event of Default under the Loan and Guarantee Agreement, the
Assignee shall be entitled, without prior notice to the Assignor or prior authorisation from
any court, to enforce all or any part of the security constituted by this Assignment in any
manner it sees fit. Without limiting any of the powers conferred on the Assignee by this
Clause 8, the Assignee shall be entitled to:

	 	(a)	 	take possession of the Assigned Property or otherwise exercise in relation to
it all of the rights of an absolute owner;
	 
	 	(b)	 	assign any or all of the Assigned Property to any person on such terms as the
Assignee considers appropriate; and
	 
	 	(c)	 	collect, recover or compromise, and give a good discharge for, any moneys paid
or payable to the Assignor under or in respect of the Assigned Property, and enforce
(in any way whatsoever including, without limitation, by way of instituting proceedings
in the Assignor’s name) any rights or claims arising under or in respect of the
Assigned Property.

	8.2	 	The power of sale or other disposal in Clause 8.2 shall operate as a variation and
extension of the statutory power of sale under Section 101 of the Law of Property Act 1925 and
such power shall arise (and the Secured Obligations shall be deemed due and payable for that
purpose) on execution of this Assignment. The restrictions contained in Sections 93 and 103
of the Law of Property Act 1925 shall not apply to this Assignment or to any exercise by the
Assignee of its right to consolidate mortgages or its power of sale.

	8.3	 	A certificate in writing by an officer or agent of the Assignee that the power of
sale or disposal has arisen and is exercisable shall be conclusive evidence of that fact in
favour of a purchaser of all or any part of the Assigned Property.

	9.	 	EXERCISE OF RIGHTS

Subject always to the terms of this Assignment, the Assignor, as agent for and on
behalf of the Assignee, shall be entitled to exercise all rights and powers which arise
under or in

- 4 -

 

respect of the Assigned Contract until notified in writing by the Assignee that an Event of
Default has occurred under the Loan and Guarantee Agreement. The Assignee shall be entitled
upon the giving of such notice to exercise all such rights and powers when they arise and
the Assignor shall thereupon cease to be the agent of the Assignee.

	10	 	FURTHER ASSURANCE

	10.1	 	The Assignor shall promptly execute all documents and do all things (including the
execution and delivery of any Notice of Assignment) that the Assignee may reasonably specify
for the purpose of (a) exercising the Collateral Rights, (b) securing and perfecting its
security over or title to all or any part of the Assigned Property or (c) facilitating any
dealings by the Assignee pursuant to the powers granted to the Assignee under this Assignment.

	10.2	 	Without prejudice to the generality of the foregoing, or the assignments created
hereby, the Assignor undertakes to the Assignee for the duration of the Assignment that in the
event that it enters into any contract of the type referred to in Part B of Schedule 2
relating to any of its operations in Romania, it will, at the request of the Assignee, enter
into a specific assignment of such contract in favor of the Assignee in substantially the same
form as this Assignment.

	11	 	POWER OF ATTORNEY

The Assignor, by way of security, irrevocably appoints the Assignee to be its attorney
and in its name, on its behalf and as its act and deed to execute, deliver and perfect all
documents (including any Notice of Assignment) and do all things that the Assignee may
consider to be necessary for (a) carrying out any obligation imposed upon the Assignor under
this Assignment or (b) exercising any of the Collateral Rights. The Assignor shall ratify
and confirm all things done and all documents executed by the Assignee in the exercise of
that power of attorney.

	12	 	RECEIVER

	12.1	 	Upon the occurrence of an Event of Default or if a petition or application is presented
for the making of an administration order in relation to the Assignor or if any person who is
entitled to do so gives written notice of its intention to appoint an administrator of the
Assignor or files such a notice with the court, the Assignee may by writing (acting through an
authorised officer of the Assignee) without notice to the Assignor appoint one or more persons
to be receiver of the whole or any part of the Assigned Property (each such person being (a)
entitled to act individually as well as jointly and (b) for all purposes deemed to be the
agent of the Assignor).

	12.2	 	In addition to the powers of the Assignee conferred by Clause 8.1, each
person appointed pursuant to Clause 12.1 shall have, in relation to the part of the Assigned
Property in respect of which he was appointed, all the powers (a) conferred by the Law of
Property Act 1925 on a receiver appointed under that Act and (b) all the other powers
exercisable by an administrative receiver in relation to the Assignor by virtue of the
Insolvency Act 1986.

- 5 -

 

	13	 	EFFECTIVENESS OF SECURITY

	13.1	 	The security created by this Assignment and the Collateral Rights shall be cumulative,
in addition to and independent of every other security which the Assignee may at any time hold
for the Secured Obligations or any rights, powers and remedies provided by law. No prior
security held by the Assignee over the whole or any part of the Assigned Property shall merge
into the security constituted by this Assignment.

	13.2	 	This Assignment shall remain in full force and effect as a continuing security for
the Secured Obligations unless and until the Assignee discharges it.

	13.3	 	No failure on the part of the Assignee to exercise, or delay on its part in
exercising, any Collateral Right shall operate as a waiver, nor shall any single or partial
exercise of a Collateral Right prevent any further or other exercise of that or any other
Collateral Right.

	13.4	 	If, at any time, any provision of this Assignment is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, the legality, validity or
enforceability of (a) the remaining provisions of this Assignment and (b) such provision under
the law of any other jurisdiction shall not in any way be affected or impaired thereby.

	13.5	 	None of the Assignee, its nominee(s) or any receiver appointed pursuant to this
Assignment shall be liable by reason of (a) taking any action permitted by this Assignment,
(b) any neglect or default in connection with the Assigned Property or (c) the taking
possession or realisation of all or any part of the Assigned Property, except in the case of
gross negligence or wilful default upon its part.

	14	 	RELEASE OF SECURITY

	14.1	 	Upon the Secured Obligations being discharged in full and the Assignee having no actual
or contingent obligation under the Loan and Guarantee Agreement, the Assignee shall, at the
request and expense of the Assignor, reassign to the Assignor the Assigned Property, subject
to Clause 14.2 and without recourse to, or any representation or warranty by, the Assignee.

	14.2	 	If the Assignee considers that any amount paid or credited to it is capable of being
avoided or reduced by virtue of any bankruptcy, insolvency, liquidation or similar laws, the
liability of the Assignor under this Assignment and the security constituted by this
Assignment shall continue and such amount shall not be considered to have been irrevocably
paid.

	14.3	 	The Assignee may retain this Assignment, the security constituted by or pursuant to
this Assignment and all documents relating to or evidencing ownership of all or any part of
the Assigned Property for a period of seven months after any discharge in full of the Secured
Obligations Provided that if at any time during that seven month period a petition or
application is presented for an order for the winding-up of, or the making of an
administration order in respect of, the Assignor or the Assignor or any person who is entitled
to do so gives written notice of its intention to appoint an administrator of the Assignor or
files such a notice with the court or the Assignor commences to be wound-

- 6 -

 

up voluntarily or any analogous proceedings are commenced
in respect of it, the Assignee may continue to retain such
security and such documents for such further period as the
Assignee may determine and the security and such documents
shall be deemed to have continued to be held as security
for the Secured Obligations.

	15	 	SUBSEQUENT INTERESTS AND ACCOUNTS

	15.1	 	If the Assignee at any time receives notice of any subsequent mortgage, assignment,
charge or other interest affecting all or any part of the Assigned Property, all payments made
by the Assignor to the Assignee after that time shall be treated as having been credited to a
new account of the Assignee and not as having been applied in reduction of the Secured
Obligations as at the time when the Assignee received notice.

	15.2	 	All monies received, recovered or realised by the Assignee under this Assignment
(including the proceeds of any conversion of currency) may in its discretion be credited to
and held in any suspense or impersonal account pending their application from time to time in
or towards the discharge of any of the Secured Obligations.

	16	 	COSTS AND EXPENSES

	16.1	 	The Assignor shall, on demand of the Assignee, reimburse the Assignee on a full
indemnity basis for all costs and expenses (including legal fees and any value added tax)
incurred by the Assignee in connection with (a) the execution of this Assignment or otherwise
in relation to it, (b) the perfection or enforcement of the security constituted by this
Assignment or (c) the exercise of any Collateral Right, together with interest from the date
the costs and expenses were incurred to the date of payment at such rates as the Assignee may
determine in accordance with the provisions of Section 2.05 of the Loan and Guarantee
Agreement.

	16.2	 	The Assignor shall pay all stamp, registration and other taxes to which this
Assignment, the security contemplated in this Assignment or any judgment given in connection
with it is, or at any time may be, subject and shall, from time to time, indemnify the
Assignee on demand against any liabilities, costs, claims and expenses resulting from any
failure to pay or delay in paying any such tax.

	17	 	CURRENCY CONVERSION

For the purpose of or pending the discharge of any of the Secured Obligations the
Assignee may convert any money received, recovered or realised or subject to application by
it under this Assignment from one currency to another, as the Assignee may think fit, and
any such conversion shall be effected at a published rate of exchange for the time being
selected by the Assignee (acting reasonably) for obtaining such other currency with the
first currency.

	18.	 	APPLICATION OF MONEYS

All moneys received or recovered by the Assignee or any receiver appointed pursuant to
this Assignment or the powers conferred by it shall (subject to the claims of any person
having prior rights thereto and by way of variation of the provisions of the Law of Property
Act 1925) be applied first in the payment of the costs, charges and expenses

- 7 -

 

incurred and payments made by such receiver, the payment of his remuneration and the
discharge of any liabilities incurred by the such receiver in, or incidental to, the
exercise of any of his powers, and thereafter shall be applied by the Assignee
(notwithstanding any purported appropriation by the Assignor) in such order and manner as
the Assignee shall think fit:

	 	(a)	 	in or towards the discharge of all or any of the Secured Obligations which are
then due and payable; or
	 
	 	(b)	 	if any of the Secured Obligations are then contingent, in payment to the
credit of any accounts selected by the Assignee to be held until such time as the
Assignee shall think fit pending their application in or towards the discharge of all
or any of the Secured Obligations which are at that time due and payable; or
	 
	 	(c)	 	in payment to the credit of any suspense or impersonal account for so long as
the Assignee shall think fit pending any further application of such moneys (as the
Assignee shall be entitled, but not obliged, to do in its discretion) in accordance
with the previous provisions of this Clause; and
	 
	 	(d)	 	if the Assignor is under no further actual or contingent liability under the
Loan and Guarantee Agreement, in payment of the surplus to the Assignor or any other
person entitled thereto.

	19	 	ASSIGNMENT

The Assignee may assign and transfer all or any of its rights and obligations under
this Assignment. The Assignee shall be entitled to disclose such information concerning the
Assignor and this Assignment as the Assignee considers appropriate to any actual or proposed
direct or indirect successor or to any person to whom information may be required to be
disclosed by any applicable law.

	20	 	SUCCESSORS

This Assignment shall remain in effect despite any amalgamation or merger (however
effected) relating to the Assignee; and references to the Assignee shall be deemed to
include any person who, under the laws of its jurisdiction of incorporation or domicile, has
assumed the rights and obligations of the Assignee under this Assignment or to which, under
such laws, those rights and obligations have been transferred.

	21	 	NOTICES

	21.1	 	Any communication to be made by one person to another under or in connection with this
Assignment shall be made in writing by fax or letter to the fax number or address specified in
Section 8.02 (Notices) of the Loan and Guarantee Agreement (or any substitute address or fax
number as that person may previously have specified).

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

	 	(a)	 	if by way of fax, when received in legible form; or

- 8 -

 

	 	(b)	 	if by way of letter, when it has been left at the relevant address or ten days
after being deposited in the post postage prepaid in an envelope addressed to it at
that address.

	21.3	 	Any communication or document to be made or delivered to the Assignee will be
effective only when actually received by the Assignee and then only if it is expressly marked
for the attention of the department or officer specified by the Assignee for such purpose.

	22	 	GOVERNING LAW AND JURISDICTION
	 
	22.1	 	Governing Law

This Assignment is governed by English law.

	22.2	 	Jurisdiction

	 	(a)	 	This Assignment is governed by and shall be construed in accordance with the
laws of England.
	 
	 	(b)	 	For the exclusive benefit of the Assignee, each Assignor irrevocably agrees
that any legal action, suit or proceeding arising out of or relating to this Assignment
or any other Transaction Document to which such Assignor is a party may be brought in
the courts of England. By the execution of this Assignment, each Assignor irrevocably
submits to the non-exclusive jurisdiction of such courts in any such action, suit or
proceeding. Final judgment against any Assignor in any such action, suit or proceeding
shall be conclusive and may be enforced in any other jurisdiction by suit on the
judgment, a certified or exemplified copy of which shall be conclusive evidence of the
judgment, or in any other manner provided by law.
	 
	 	(c)	 	Nothing in this Assignment shall affect the right of the Assignee to commence
legal proceedings or otherwise sue any Assignor in any other appropriate jurisdiction,
or concurrently in more than one jurisdiction, or to serve process, pleadings and other
papers upon any Assignor in any manner authorized by the laws of any such jurisdiction.
	 
	 	(d)	 	Each Assignor hereby irrevocably designates, appoints and empowers HTD
Services Ltd, with offices currently located at Irongate House, Duke’s Place, London,
EC3A 7HX, as its authorized agent solely to receive for and on its behalf service of
the writ of summons or other legal process in any action, suit or proceeding arising
out of or relating to this Assignment or any Transaction Document which the Assignee
may bring in the courts of England.
	 
	 	(e)	 	As long as this Assignment or any other Transaction Document to which an
Assignor is a party remains in force, such Assignor shall maintain a duly appointed and
authorized agent to receive for and on its behalf service of the writ of summons or
other legal process in any action, suit or proceeding brought by the Assignee in the
courts of England with respect to this Assignment or

- 9 -

 

such other Transaction Documents. Such Assignor shall keep the Assignee advised of
the identity and location of such agent.

	 	(f)	 	Each Assignor irrevocably waives:

	 	(i)	 	any objection which it may have now or in the future to the laying of
the venue of any action, suit or proceeding in any court referred to in this
Section; and
	 
	 	(ii)	 	any claim that any such action, suit or proceeding has been brought
in an inconvenient forum.

	 	(g)	 	To the extent that any Assignor may be entitled in any jurisdiction to claim
for itself or its assets immunity with respect to its obligations under this Assignment
or any other Transaction Document to which it is a party from any suit, execution,
attachment (whether provisional or final, in aid of execution, before judgment or
otherwise) or other legal process or to the extent that in any jurisdiction that
immunity (whether or not claimed), may be attributed to it or its assets, such Assignor
irrevocably agrees not to claim and irrevocably waives such immunity to the fullest
extent now or in the future permitted by the laws of such jurisdiction.
	 
	 	(h)	 	Each Assignor also consents generally with respect to any proceedings arising
out of or in connection with this Assignment or any other Transaction Document to which
it is a party to the giving of any relief or the issue of any process in connection
with such proceedings including, without limitation, the making, enforcement or
execution against any property whatsoever (irrespective of its use or intended use) of
any order or judgment which may be made or given in such proceedings.
	 
	 	(i)	 	To the extent that the Assignor may, in any suit, action or proceeding brought
in any of the courts referred to in Clause 22.2 (b) or a court elsewhere arising out of
or in connection with this Assignment or any other Transaction Document to which such
Assignor is a party, be entitled to the benefit of any provision of law requiring the
Assignee in such suit, action or proceeding to post security for the costs of such
Assignor, or to post a bond or to take similar action, such Assignor hereby irrevocably
waives such benefit, in each case to the fullest extent now or in the future permitted
under the laws of the jurisdiction in which such court is located.
	 
	 	(j)	 	Each Assignor also irrevocably consents, if for any reason such Assignor’s
authorized agent for service of process of summons, complaint and other legal process
in any action, suit or proceeding is not present in England, to service of such papers
being made out of those courts by mailing copies of the papers by registered air mail,
postage prepaid, to such Assignor at its address specified pursuant to Section 8.02
(Notices) of the Loan and Guarantee Agreement. In such a case, the Assignee shall also
send by facsimile, or have sent by facsimile, a copy of the papers to such Assignor.

- 10 -

 

IN WITNESS WHEREOF this Assignment has been signed on behalf of the Assignee and executed as a deed
by the Assignor and is intended to be and is hereby delivered by it as a deed on the date specified
above.

- 11 -

 

SCHEDULE 1

Part A

Form of Notice of Assignment

To: Petrom Gas SrL

Date: 21, February 2007

Dear Sirs,

	1.	 	We hereby give you notice that we have assigned to International Finance Corporation
(the “Assignee”) pursuant to an assignment entered into by us in favour of the Assignee dated
December 21, 2006 all our right, title and interest in and to the Natural Gas Sale and
Purchase Contract dated December 21, 2006, by and between Toreador Resources Corporation
(Sucursala Bucuresti) and Petrom Gas SrL (the “Assigned Contract”) including all moneys which
may be payable in respect of the Assigned Contract.
	 
	2.	 	With effect from your receipt of this notice:

	 	(a)	 	all payments by you to us under or arising from the Assigned Contract (the
“Payments”) shall be made to the account specified in paragraph 4, or otherwise as the
Assignee may specify in writing from time to time; and
	 
	 	(b)	 	you are authorised and instructed, without requiring further approval from us,
to provide the Assignee with such information relating to the Assigned Contract as it
may from time to time request and to send copies of all notices issued by you under the
Assigned Contract to the Assignee as well as to us.
	 
	 	(c)	 	you are authorised and instructed, without requiring further approval from us,
to provide the Assignee with such information relating to the Assigned Contracts as it
may from time to time request and to send copies of all notices issued by you under the
Assigned Contracts to the Assignee as well as to us.
	 
	 	(d)	 	all remedies provided for in the Assigned Contracts or available at law or in
equity shall be exercisable by, or at the direction of, the Assignee, although we shall
remain liable to perform all the obligations assumed by us under the Assigned
Contracts;;
	 
	 	(e)	 	all rights, interests and benefits whatsoever accruing to or for the benefit
of ourselves arising from the Contract shall belong to the Assignee; and
	 
	 	(f)	 	you should continue to give notices under each Assigned Contract to us, in
each case, unless and until you receive written notice from the Assignee to the
contrary.

	3.	 	With effect from your receipt of this notice, you are irrevocably instructed to pay
all payments due and payable under the Assigned Contract to the following account:

     Account Name: Toreador Resources Corporation USA (Sucursala Bucuresti)

- 12 -

 

Account Bank: ING BANK NV AMSTERDAM (Sucursala Bucuresti), 11-13, KISELEFF Avenue, PO BOX
2-202, 011342, Bucharest 1, Romania

	 	 	 	 	 	 	 	 	 
	Account Number:

	 	RON Account:
	 	 	8168598910	 	 	 
	 
	Bank SWIFT Code:

	 	INGBROBU	 	 	 	 	 	 
	 
	Bank IBAN Code:

	 	RON Account:
	 	 	RO79INGB0001008168598910
	 	 

(the “Specified Account”). We acknowledge and agree that any such payment into the
aforementioned accounts will constitute a payment to us in discharge of the applicable
obligation owed to us under the Assigned Contract.

	4.	 	The instructions contained in this notice may not be revoked, nor may the terms of the
Assigned Contract be amended, varied or waived in any material manner, or terminated without
the prior written consent of the Assignee.

	5.	 	Please acknowledge receipt of this notice by signing the acknowledgement on the
enclosed copy letter and returning it to the Assignee at 2121 Pennsylvania Avenue, N.W.,
Washington, D.C., 20433, USA marked for the attention of Director, Oil, Gas, Mining and
Chemicals Department.

     6. This notice is governed by English law.

Yours faithfully,

/s/ Nigel Lovett

For and on behalf of

TOREADOR RESOURCES CORPORATION, as Assignor

We confirm our agreement to the terms of this notice and instruct you, in accordance with Clause 2
of this notice, and with effect from the date of your receipt of this notice, that:

	(a)	 	the Payments shall be made to the Specified Account;
	 
	(b)	 	all remedies provided for in the Assigned Contract (or otherwise available) and all
rights to compel performance of the Assigned Contract shall be exercisable by Toreador
Resources Corporation; and
	 
	(c)	 	all rights, interests and benefits whatsoever accruing to or for the benefit of
ourselves arising from the Assigned Contract shall belong to Toreador Resources Corporation,

in each case until you receive written notification from us to the contrary.

/s/ Somit Varma

For and on behalf of

- 13 -

 

     INTERNATIONAL FINANCE CORPORATION

- 14 -

 

Part B

Acknowledgement

To: International Finance Corporation

We acknowledge receipt of a notice in the terms set out above and confirm that we have not received
notice of any previous assignments or charges of or over any of the rights, interests and benefits
in and to the Assigned Contract and that we will comply with the terms of the notice from the
Assignor.

We further confirm and agree that:

	(a)	 	we have not claimed or exercised and have no outstanding right to claim or exercise
any right of set-off, counterclaim or other right relating to the Payments;
	 
	(b)	 	no amendment, waiver or release in any material manner of any rights, interests and
benefits in and to the Assigned Contract shall be effective without your prior written
consent;
	 
	(c)	 	no termination of those rights, interests or benefits shall be effective unless we
have given you thirty (30) days written notice of the proposed termination, specifying the
action necessary to avoid such termination; and
	 
	(d)	 	all payments shall be paid by us into the Specified Account unless we are instructed
in writing by you to the contrary.

We acknowledge receipt of instructions from you in connection with the assignment of the Assigned
Contract and confirm that we shall act in accordance with them until we receive written
notification from you to the contrary.

For and on behalf of Petrom Gas SrL

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

- 15 -

 

SCHEDULE 2

Assigned Contract

Part A

Natural Gas Sale and Purchase Contract between Toreador Resources Corporation (Bucharest branch)
and Petrom Gas Srl dated December 21, 2006

Part B

Any contract entered into by the Assignor from time to time relating to oil or gas production in
Romania.

- 16 -

 

THE ASSIGNOR

EXECUTED as a DEED

TOREADOR RESOURCES CORPORATION

	 	 	 
	/s/ Nigel Lovett
	 	 
	 

Director

	 	 
	 
	 	 
	/s/ Shirley Z. Anderson
	 	 
	 

Director/Secretary

	 	 

	 	 	 	 	 
	THE ASSIGNEE	 	 
	 
	INTERNATIONAL FINANCE CORPORATION	 	 
	 
	By:

	 	/s/ Somit Varma	 	 
	 

	 	 	 	 
	Name:

	 	Somit Varma	 	 
	Title:

	 	Associate Director	 	 

- 17 -exv10w44

 

EXHIBIT 10.44

     Dr. Tóth Ádám és Dr. Gáspár Edina Közjegyzõi Iroda

Dr. Tóth Ádám közjegyzõ e-mail: notar@notar.hu

1092 Budapest Ráday u.34.I.em.8., tel: 1-476-0270,1-476-01-58,fax:1-476-02-71

Docet Number: 0327/2007.

Certified Office Copy

NOTARIAL DEED

     Before me, Dr. Csernák András, notarysubstitute (licence to act in English:
IM/IGKOD/2005/KÖZJ/3007) at Dr. Tóth, Ádám Notary at Budapest, at the date mentioned below in the
office of the notary (1092 Budapest, Ráday u. 34. I. em. 8.), appeared as client:

     1.) TOREADOR RESOURCES CORPORATION (a company incorporated under the laws of Delaware, having
its seat at US — Texas, 75205, Dallas, 4809 Cole Avenue, Suite 108, registered under number:
0448603) represented by Mr. Wetzlaugk, Travis Karl-Paul (born in Edmonton/Canada, 19. November
1965) Canadian Citizen, who established his identity by his Canadian Passport No.BC246265, acting
alone in the name of the said company, who established his power of procuration by the Power of
Attorney attached hereto, and

     2.) INTERNATIONAL FINANCE CORPORATION (registered seat at: 2121 Pennsylvania Avenue N.W.,
Washington, D.C. 20433, United States of America) represented by dr. Mestyán, Szabolcs (born in
Debrecen, 07. October 1981., mother’s maiden name: Varga, Marianna) domicilled at 1139 Budapest,
Petneházy u. 21. VI/26., who established his identity by his Identity Card No.427307EA, and his
Address Card No.938767JL, acting alone in the name of the said company, who established his power
of procuration by the Power of Attorney attached hereto.

     3.) Toreador International Holding Limited Liability Company (registered seat at: 1054 Budapest,
Szabadság tér 7., Hungary, registration number: 01-09-868606, tax number: 13698599-2-41,
statistical code: 13698599-7415-113-01) represented by Mr. Wetzlaugk, Travis Karl-Paul (born in
Edmonton/Canada, 19. November 1965) Canadian Citizen, who established his identity by his Canadian
Passport No.BC246265, acting alone in the name of the said company, who established his power of
procuration by the Extract of the Commercial Register.

     The representatives of the Contracting Parties declared, with full knowledge of their potential
criminal responsibility and liability, that the Contracting Party represented by them has been
properly established and is currently existing and that they, as representatives with signing
authority pursuant to the above, are authorised to make the declarations necessary for inclusion in
the present notarial deed in the name of the Contracting Party which they represent.

     The clients requested me to draw up into a notarial deed in English language spoken by them the
following:

QUOTA CHARGE AGREEMENT

This Quota Charge Agreement (the “Agreement”) is made on the 28th (twenty-eighth) day of
February in the year of 2007 (two thousand and seven) between:

(1) TOREADOR RESOURCES CORPORATION, as owner of the Quota (as defined below), as guarantor under
the Loan and Guarantee Agreement (as defined below) and chargor under this Agreement (hereinafter
referred to as the “Chargor”);
and

(2) INTERNATIONAL FINANCE CORPORATION, as chargee under this Agreement (hereinafter referred to as
the “IFC” or the “Chargee”);

(1), and (2) are together hereinafter referred to as the “Parties”.

This Agreement is hereby acknowledged and accepted by:

1

 

(3) TOREADOR INTERNATIONAL HOLDING LIMITED LIABILITY COMPANY (in Hungarian: TOREADOR INTERNATIONAL
BEFEKTETÉSI KFT.) (hereinafter referred to as the “Company”).

WHEREAS

(A) Pursuant to the Loan and Guarantee Agreement, IFC have agreed to make available to the
Borrowers (as defined below) term and revolving facilities in a maximum amount of USD 10,000,000
(i.e. ten million US Dollar) and USD 40,000,000 (i.e. forty million US Dollar) respectively on the
terms and conditions set out therein.

(B) The Chargor was requested to provide security to the Chargee as set out herein.

(C) It is a condition precedent of the Loan and Guarantee Agreement that the Parties enter into
this Agreement to create a security interest over the Quota in accordance with and subject to the
terms set out herein.

NOW IT IS HEREBY AGREED AS FOLLOWS:

1. INTERPRETATION

Unless a contrary indication appears, all terms defined and rules of interpretation set out in the
Loan and Guarantee Agreement shall have the same respective meanings when used herein.

1.1 Definitions

In this Agreement:

“Articles of Association” or ,,Deed of Foundation” means the articles of association or deed of
foundation of the Company as it exists and is in full force and effect since their latest
amendments on 19th (nineteenth) day of January in the year of 2006 (two thousand and
six) and on 05th (fifth) day of February in the year of 2007 (two thousand and seven)
and on 20th (twentieth) day of February in the year of 2007 (two thousand and seven),
provided that such amendments will be registered with the Court of Registration in the lack of
which “Articles of Association” shall mean the articles of association or deed of foundation of the
Company as it exists and is in full force and effect since their latest amendment on
31st (thirty-first) day of October in the year of 2006 (two thousand and six) .

“Borrowers” means collectively Toreador Turkey Ltd., Toreador Romania Ltd., Madison Oil France SAS
and Toreador Energy France S.C.S., each as a borrower under the Loan and Guarantee Agreement.

“Charge” means the charge created by, and pursuant to, this Agreement in connection with the Quota.

“Civil Code” means Act IV of 1959 on the Civil Code of the Republic of Hungary.

“Companies Act” means Act IV of 2006 on Business Associations.

“Court Enforcement Act” means Act LIII of 1994 on Judicial Execution.

“Court of Registration” means the relevant Hungarian court of registration having jurisdiction over
the Company (currently being “Fõvárosi Bíróság mint Cégbíróság”).

“Declaration” means a written declaration (in the form of a notarial deed) of the Chargee issued in
accordance with Section 21(2) of the Court Enforcement Act (i) declaring the failure to pay the
relevant amounts on the due date set forth in the Demand and (ii) stipulating the amount of
principal, interest and default interest due as at the date of such declaration as well as the
applicable rate of interest and default interest applicable from such date until the date of
receipt by the Chargee of the proceeds of the enforcement hereunder.

“Demand” means any demand made by IFC and sent to the Borrowers with a copy to the Chargor upon the
occurrence of an Enforcement Event (i) declaring the occurrence of an Event of Default under the
Loan and Guarantee Agreement and/or the Financing Documents; and (ii) setting (in the IFC’s total
discretion) a payment date for the payment by the Chargor of any amounts outstanding under or in
connection with the Loan and Guarantee Agreement and/or the Finance Documents and stipulating that if such payment is not made when due, the Chargee
becomes authorised to enforce the Charge.

2

 

“Enforcement Event” means:

(a) an occurrence of an Event of Default which is continuing unwaived; and

(b) a notice under Clause 7.01 (Acceleration after Default) of the Loan and Guarantee Agreement
(including, inter alia, the Demand) is served on the Chargor.

“Event of Default” means any event or circumstance specified as such in Clause 7.02 (Events of
Default) of the Loan and Guarantee Agreement.

“Financing Document” has the meaning given to that term in the Loan and Guarantee Agreement.

“Guarantors” has the meaning given to that term in the Loan and Guarantee Agreement (including the
Chargor).

“Loan and Guarantee Agreement” means the USD 40,000,000 (i.e. forty million US Dollar) revolving
and the USD 10,000,000 (i.e. ten million US Dollar) term facilities agreement dated 28th
(twenty-eighth) day of December in the year of 2006 (two thousand and six) and made between
Toreador Resources Corporation and Toreador International Holding Limited Liability Company as
guarantors, Toreador Turkey Ltd., Toreador Romania Ltd., Madison Oil France SAS and Toreador Energy
France S.C.S. as borrowers and guarantors and International Finance Corporation.

“Obligors” means the Borrowers and the Guarantors under the Loan and Guarantee Agreement, and

“Obligor” shall be construed accordingly.

“Quota” means the quota owned by Chargor in the Company representing its ownership interest in the
Company from time to time.

“Quotaholders’ Resolution” means any resolution passed by the Chargor in respect of the Company.

“Registry of Charges” means the central registry of charges, fixed charges and floating charges
kept and maintained by the Chamber of Hungarian Public Notaries.

“Secured Obligations” means all obligations which any Obligor may at any time have to IFC under or
pursuant to the Financing Documents, including without limitation any liability in respect of any
future advances made hereunder, whether present or future, actual or contingent (and whether
incurred solely or jointly and whether as principal or as surety or in some other capacity). For
the avoidance of doubt, the Charge secure the abovementioned obligations up to an aggregate amount
set out under Clause 2.1.

“Security Documents” has the meaning given to that term in the Loan and Guarantee Agreement.

“Termination Date” means the date currently scheduled for 15th (fifteenth) day of June
in the year of 2015 (two thousand and fifteen).

1.2 Interpretation

1.2.1 Headings are for convenience of reference only.

1.2.2 Where the context so permits, the singular includes the plural and vice versa.

1.2.3 References to Clause shall, subject to any indication to the contrary, mean the respective
Clause of this Agreement.

1.2.4 Save where the contrary is indicated, any reference in this Agreement to any “Borrower”, the
“Chargor”, the “Chargee” or any “Guarantor” shall be construed so as to include its or their
respective successors, transferees and assigns under the Loan and Guarantee Agreement from time to
time and any successor of such a successor, transferee or assign in accordance with their
respective interests.

1.2.5 References to the Loan and Guarantee Agreement, the Financing Documents, this Agreement or
any other agreement or document shall, where applicable, be deemed to be references to such Loan
and Guarantee Agreement, Finance Documents, this Agreement or
such other agreement or document as the same may have been, or may from time to time be, extended,
prolonged, amended, restated, supplemented, renewed or novated, as persons may accede thereto as a
party or withdraw therefrom as a party in part or in whole or be released

3

 

thereunder in part or in
whole, and as facilities and financial services are or may from time to time be granted, extended,
prolonged, increased, reduced, cancelled, withdrawn, amended, restated, supplemented, renewed or
novated thereunder.

1.2.6 References to any element of the legislation, statute, act, law, regulation or any provision
thereof shall, where applicable, be deemed to be references to that element of the legislation, as
amended or re-enacted.

1.2.7 Any amount paid to IFC under any Financing Document will be deemed, for the purposes of this
Agreement, irrevocably paid in full if it has been paid in full and there is no evidence such as to
give a reasonable belief that any claim will be brought to revoke such payment.

1.3 Security Period

The security period is commencing on the date of this Agreement and terminating on the date (being
the Termination Date) when the Secured Obligations have been duly and fully discharged.

2. CREATION OF THE CHARGE

2.1 In order to secure the Secured Obligations up to the amount of:

(i) USD 50,000,000 (i.e. fifty million US Dollar) principal; plus

(ii) all accrued interest (to be calculated in accordance with Clause 3.2 (Calculation of
Interest)), plus

(iii) all accrued default interest (to be calculated in accordance with Clause 3.4 (Calculation of
Interest)), plus

(iv) any other indemnities, fees, commissions, costs and expenses (including expenses arising in
connection with the enforcement of this Agreement) arising under or in connection with the Loan and
Guarantee Agreement and/or the Financing Documents,
the Chargor hereby grants to the Chargee for the benefit of the Chargee a Charge over its Quota in
the Company and over any rights and/or benefits arising out of, or in connection with its Quota,
including, without limitation all cash dividends or distributions payable at any time hereafter on
the Quota.

2.2 The Charge constituted by this Agreement will come into existence upon the execution of this
Agreement in the form of a notarial deed and the parties hereby request the registration of the
Charge in the Registry of Charges.

2.3 By signing this Agreement the Company acknowledges the creation of Charge over the Quota and
undertakes to indicate such Charge in the members’ list of Company, submit such members’ list to
the Court of Registration and evidences such submission to the Chargee.

3. CALCULATION OF INTEREST

3.1 For the purposes of this Clause 3 (Calculation of Interest),

3.1.1 “A Loan” shall mean the principal amount of each borrowing under the A Loan Facility or, as
the context requires, the principal amount outstanding of that borrowing; provided that for
avoidance of doubt, and in accordance with Section 2.02(c) of the Loan and Guarantee Agreement, on
each Interest Payment Date all A Loans (including Rollover Loans) outstanding prior to such
Interest Payment Date shall (to the extent not repaid and subject to the fulfillment of the
conditions for the making of each Rollover Loan set forth in Clause 5.02 (Conditions of All
Disbursements) and Clause 5.04 (Certification) of the Loan and Guarantee Agreement) be rolled over
into a single A Loan on such Interest Payment Date;

3.1.2 “A Loan Facility” shall mean the facility specified in Clause 2.01(a)(i) (Loan Procedure and
Rollover) of the Loan and Guarantee Agreement or, as the context requires, its principal amount
from time to time outstanding thereunder;

3.1.3 “Applicable Margin” shall mean:

(a) with respect to the A Loan, two percent (2%) per annum; and

(b) with respect to the C Loan:

4

 

(i) one point five percent (1.5%) per annum, until the date of disbursement of the first A Loan;
and

(ii) zero point five percent (0.5%) per annum, on and after the date of disbursement of the first A
Loan;

3.1.4 “A Loan Interest Rate” shall mean for any Interest Period, the rate at which interest is
payable on each A Loan during that Interest Period, determined in accordance with Clause 3.2 and,
if applicable, Clause 3.3 below;

3.1.5 “Business Day” shall mean a day when banks are open for business in New York, New York or,
solely for the purpose of determining the applicable Interest Rate other than pursuant to Clause
2.03 (d) (ii) (Interest) of the Loan and Guarantee Agreement (as stipulated in Clause 3.2.4(b) of
this Agreement), London, England;

3.1.6 “C Loan” shall mean the principal amount of the C Loan Facility or, as the context requires,
the principal amount outstanding of that facility;

3.1.7 “C Loan Facility” shall mean the facility specified in Clause 2.01(a)(ii) (The Facility) of
the Loan and Guarantee Agreement or, as the context requires, its principal amount from time to
time outstanding;

3.1.8 “C Loan Interest Rate” shall mean for any Interest Period, the rate at which interest is
payable on the C Loan during that Interest Period, determined in accordance with Clause 3.2 and, if
applicable, Clause 3.3 below;

3.1.9 “Interest Determination Date” shall mean except as otherwise provided in Clause 2.03 (d) (ii)
(Interest) of the Loan and Guarantee Agreement (as stipulated in Clause 3.2.4(b) of this
Agreement), the second Business Day before the beginning of each Interest Period;

3.1.10 “Interest Payment Date” shall mean June 15. (fifteenth) and December 15. (fifteenth) in each
year or, in the case of any Interest Period of less than six (6) months, pursuant to Clause 2.04
(Change in Interest Period) of the Loan and Guarantee Agreement (as stipulated in Clause 3.3 of
this Agreement), any day that is the 15. (fifteenth) day of the month in which the relevant
Interest Period ends;

3.1.11 “Interest Period” shall mean each period of six (6) months or, in the circumstances referred
to in Clause 2.04 (Change in Interest Period) of the Loan and Guarantee Agreement (as stipulated in
Clause 3.3 of this Agreement), each period of three (3) months or one (1) month determined pursuant
to that Clause, in each case beginning on an Interest Payment Date and ending on the day
immediately before the next following Interest Payment Date, except in the case of the first period
applicable to each Loan when it means the period beginning on the date on which that Loan is made
and ending on the day immediately before the next following Interest Payment Date;

3.1.12 “Interest Rate” shall mean

(a) with respect to the A Loan, the A Loan Interest Rate; and

(b) with respect to the C Loan, the C Loan Interest Rate;

3.1.13 “LIBOR” shall mean the British Bankers’ Association (“BBA”) interbank offered rates for
deposits in the Loan Currency which appear on the relevant page of the Telerate Service (currently
page 3750) or, if not available, on the relevant pages of any other service (such as Reuters
Service or Bloomberg Financial Markets Service) that displays such BBA rates; provided that if BBA
for any reason ceases (whether permanently or temporarily) to publish interbank offered rates for
deposits in the Loan Currency, “LIBOR” shall mean the rate determined pursuant to Clause 2.03 (d)
(Interest) of the Loan and Guarantee Agreement (as stipulated in Clause 3.2.4 of this Agreement);

3.1.14 “Loan Currency” shall mean US Dollars;

3.1.15 “Loans” shall mean together, the A Loan and the C Loan or, as the context requires, their
principal amount from time to time outstanding and “Loan” means either of them or, as the context
requires, its principal amount from time to time outstanding;

5

 

3.1.16 “Potential Event of Default” any event or circumstance which would, with notice, lapse of
time, the making of a determination or any combination thereof, become an Event of Default; and

3.1.17 “Rollover Loan” shall mean a Loan made on an Interest Payment Date in the same amount as all
or a portion of an outstanding Loan or Loans maturing on such Interest Payment Date, and which is
applied solely in refinancing all or a portion of such maturing Loan, all in accordance with Clause
2.02(c) (Loan Procedure and Rollover) of the Loan and Guarantee Agreement;

3.2 Subject to the provisions of Clause 3.4 below, each of the Borrowers shall, on a joint and
several basis, pay interest on each Loan in accordance with this Clause 3.2:

3.2.1 During each Interest Period, the Loans shall bear interest at the applicable Interest Rate
for that Interest Period.

3.2.2 Interest on each Loan shall accrue from day to day, be prorated on the basis of a 360 (i.e.
three hundred and sixty)-day year for the actual number of days in the relevant Interest Period and
be payable in arrears on the Interest Payment Date immediately following the end of that Interest
Period; provided that with respect to any Loan made less than fifteen (15) days before an Interest
Payment Date, interest on that Loan shall be payable on the second Interest Payment Date following
the date of that Loan.

3.2.3 The Interest Rate for any Interest Period shall be the rate which is the sum of:

(a) the Applicable Margin; and

(b) LIBOR on the Interest Determination Date for that Interest Period for six (6) months (or, in
the case of the first Interest Period for any Loan, for one (1) month, two (2) months, three (3)
months or six (6) months, whichever period is closest to the duration of the relevant Interest
Period (or, if two periods are equally close, the longer one)) rounded upward to the nearest three
decimal places.

3.2.4 If, for any Interest Period, IFC cannot determine LIBOR by reference to the Telerate Service
or any other service that displays BBA rates, IFC shall notify Borrowers and shall instead
determine LIBOR:

(a) on the second Business Day before the beginning of the relevant Interest Period by calculating
the arithmetic mean (rounded upward to the nearest three decimal places) of the offered rates
advised to IFC on or around 11:00 a.m., London time, for deposits in the Loan Currency and
otherwise in accordance with Clause 3.2.3 (b), by any four (4) major banks active in the Loan
Currency in the London interbank market, selected by IFC; provided that if less than four
quotations are received, IFC may rely on the quotations so received if not less than two (2); or

(b) if less than two (2) quotations are received from the banks in London in accordance with
subsection (a) above, on the first day of the relevant Interest Period, by calculating the
arithmetic mean (rounded upward to the nearest three decimal places) of the offered rates advised
to IFC on or around 11:00 a.m., New York time, for loans in the Loan Currency and otherwise in
accordance with Clause 3.2.3(b), by a major bank or banks in New York, New York selected by IFC.

3.2.5 On each Interest Determination Date for any Interest Period, IFC shall determine the Interest
Rate applicable to that Interest Period and promptly notify the Borrowers of those rates.

3.2.6 The determination by IFC, from time to time, of the applicable Interest Rate shall be final
and conclusive and bind the Borrowers (unless the Borrowers show to IFC’s satisfaction that the
determination involves manifest error).

3.3 Without prejudice to the provisions of Clause 3.4 (Default Interest), if at any time any of the
Borrowers fails to pay any amount of principal of, or interest on, any Loan when due (whether at
stated maturity or upon acceleration), and any part of that amount remains unpaid

6

 

on the third Business Day immediately preceding any Interest Payment Date falling after that amount became due,
then:

3.3.1 IFC may elect that the duration of the Interest Period commencing on that Interest Payment
Date and, subject to Clause 3.3.3, any subsequent Interest Period shall be either three (3) months
or one (1) month and shall notify the Borrowers of that election in the notice referred to in
Clause 3.2.5 above;

3.3.2 the Interest Rates applicable to any Interest Period which is three (3) months or one (1)
month shall be determined in accordance with Clause 3.2 in all respects, except that any reference
in Clause 3.2.3(b) to six (6) months shall be deemed to be a reference to three (3) months or, as
the case may be, one (1) month; and

3.3.3 unless an Event of Default or Potential Event of Default has occurred and is continuing, IFC
shall reinstate Interest Periods of six (6) months as of the first Interest Payment Date which is
June 15. (fifteenth) or December 15. (fifteenth) falling at least three (3) Business Days after the
payment default is remedied in full and shall inform the Borrowers of that reinstatement in the
notice referred to in Clause 3.2.5 above.

3.4 Default Interest

3.4.1 Without limiting the remedies available to IFC under this Agreement or otherwise (and to the
maximum extent permitted by applicable law), if the Borrowers fail to make any payment of principal
or interest (including interest payable pursuant to this Clause) or any other payment provided for
in Clause 2.08 (Fees) of the Loan and Guarantee Agreement when due as specified in this Agreement
(whether at stated maturity or upon acceleration), the Borrowers shall, on a joint and several
basis, pay interest on the amount of that payment due and unpaid at the rate which shall be the sum
of two per cent (2%) per annum and the Interest Rate in effect from time to time.

3.4.2 Interest at the rate referred to in Clause 3.4.1 shall accrue from the date on which payment
of the relevant overdue amount became due until the date of actual payment of that amount (as well
after as before judgment), and shall be payable on demand or, if not demanded, on each Interest
Payment Date falling after any such overdue amount became due.

4. RANKING AND CHARACTERISTICS OF THE CHARGE

4.1 The Charge constituted by this Agreement shall be first ranking.

4.2 The Charge constituted by, and pursuant to, this Agreement shall:

(a) be a continuing security for the payment, satisfaction and discharge in full of the Secured
Obligations and shall not be considered as satisfied or discharged or prejudiced by any
intermediate payment, satisfaction or settlement of any part of the Secured Obligations or any
other matter or thing whatsoever;

(b) be in addition to and shall not operate so as in any way to prejudice or affect or be
prejudiced or affected by any encumbrance, security interest, guarantee, suretyship, indemnity or
other right or remedy which the Chargee (or any person on its behalf) may now or at any time
hereafter hold for or in respect of the Secured Obligations or any part thereof; and

(c) not be prejudiced by any time or indulgence granted to any person, or any abstention or delay
by the Chargee (or any person on its behalf) in perfecting or enforcing any encumbrance, security
interest, guarantee, suretyship, indemnity or other right or remedy that any of them may now or at
any time hereafter have from or against the Chargor.

4.3 The Parties agree and confirm that any person becoming a transferee of any rights and
obligations of IFC under the Loan and Guarantee Agreement shall thereupon become entitled to the
benefit of the provisions contained herein as if it had originally been and had been named as a
party hereto.

4.4 This Agreement shall be construed so as to constitute a separate security agreement between the
Chargor on the one hand and the Chargee on the other hand and if such separate agreement between
the Chargor and the Chargee becomes invalid or unenforceable, is terminated, rescinded, released,
void, voidable, amended, restated, renewed, novated,

7

 

supplemented or otherwise affected, the
Secured Obligations of the Chargor is satisfied or any of the rights of charge created thereby is
ineffective, the foregoing shall, to the fullest extent permitted by law, not affect the validity
or enforceability of any of the other agreements between the Chargor on the one hand and the
Chargee on the other hand.

5. VOTING RIGHTS AND DIVIDENDS

5.1 The Chargee confirms that until the occurrence of an Enforcement Event, the Chargor shall be
entitled to:

5.1.1 receive, retain and utilise all dividends, interest and other monies arising on its Quota to
the extent permitted under the Loan and Guarantee Agreement; and

5.1.2 exercise all voting rights in relation to its Quota, provided that the Chargor observe all of
its obligations under this Agreement and the Financing Documents.

5.2 So long as the Company shall not have received a written notice from the Chargee that an Event
of Default has occurred or would occur as a result of the payment or other distribution of such
dividend by the Company, it shall be authorised to pay such cash dividends directly to the Chargor.
By signing this Agreement, the Company confirms that a written notice from the Chargee to the
Company stating that an Event of Default (which is continuing unremedied and unwaived) has
occurred, shall be sufficient for the Company to accept the Chargee as being exclusively entitled
to such rights and other powers which it is entitled to exercise upon the occurrence of such an
Event of Default (which is continuing unremedied and unwaived).

5.3 Upon the occurrence of an Enforcement Event, the Chargee may, at its discretion (in the name of
the Chargor or otherwise and without any further consent or authority from the Chargor), but
subject to the provisions of this Agreement:

5.3.1 exercise (or refrain from exercising) any voting rights in respect of the Quota;

5.3.2 apply all dividends, interest and other monies arising on the Quota as though they were the
proceeds of sale under this Agreement; and

5.3.3 transfer the Quota into the name of such nominee(s) of the Chargee as it shall require.

6. REPRESENTATIONS, WARRANTIES AND COVENANTS

6.1 Representations and Warranties
In addition and without prejudice to those representations and warranties made by or in respect of
the Chargor herein or in the Financing Documents, the Chargor hereby represents and warrants that,
so long as this Agreement shall be in force:

(a) it is a company duly incorporated and validly existing under the laws of its jurisdiction of
incorporation and has the power and authority to own its properties and to transact the business in
which it is engaged in at all places where it engages in business;

(b) it has all necessary power, has taken all necessary corporate action, has obtained all
necessary consents of all government agencies and has taken all action necessary or required by law
to enable it to execute and perform this Agreement;

(c) the obligations expressed to be assumed by it in this Agreement constitute its legal, valid,
binding and enforceable obligations;

(d) the Company is a company duly incorporated and validly existing under the laws of Hungary;

(e) it is the sole owner of its respective Quota; and it has not sold, transferred or otherwise
disposed of, nor has it agreed to sell, transfer or otherwise dispose of any or all of its rights
in the Quota to any third person other than as permitted under the Loan and Guarantee Agreement;

(f) according to the Quota Sale and Purchase Agreement concluded between the Chargor and Madison
Oil Company Europe dated on the 20th (twentieth) day of February in the year of
2007 (two thousand and seven) its Quota represents a 100% (i.e. one hundred percent) ownership
interest in the Company and the respective documents will be filed within 3 (i.e. three) Business
Days while such fact will be registered with the Court of Registration within 90 (i.e. ninety) days
following the date of this Agreement;

8

 

(g) its Quota is free and clear of any and all encumbrances and of any rights of third parties,
save for pre-emption rights stipulated in the Companies Act and it is entitled to charge the Quota
as envisaged hereby other than as permitted under the Loan and Guarantee Agreement;

(h) its Quota is not subject to any pending litigation, other legal procedures or actions or any
claims of any third parties;

(i) it has not reserved a priority position in respect of its Quota (as regulated by Section 264
(2) of the Civil Code);

(j) this Agreement, together with the act of registration, as set out in Clause 2.2 constitutes a
valid first ranking Charge over its Quota;

(k) it has not taken any action or allowed the Company or any of its authorised signatories to take
any action that alters or impedes the Chargee’s rights hereunder;

(l) its Quota is fully paid up and there are no liabilities outstanding in respect thereof; and

(m) no decrease in the registered capital (törzstõke) of the Company or any other change that might
adversely affect the execution and performance or enforceability of this Agreement has occurred
since the date of the extract (cégkivonat) obtained from the Court of Registration.

6.2 Covenants
In addition and without prejudice to those covenants, undertakings, commitments and obligations
made by or in respect of the Chargor herein and in the Financing Documents, the Chargor hereby
covenants that, so long as this Agreement shall be in force, it shall:

(a) ensure that the Chargor bears all the costs and expenses in relation to the notarisation of
this Agreement and the registration of the Charge in the Registry of Charge and with the Court of
Registration (including, without limitation stamp duties and fees payable to the Hungarian public
notary and the Court of Registration);

(b) not take or omit to take any action the taking or omission of which might result in the
alteration or impairment of any rights under the Charge or which might adversely affect or diminish
the value of the Quota;

(c) notify the Chargee immediately of any event or circumstance which might adversely affect, alter
or impair the Chargee’s rights under or pursuant to this Agreement or diminish the value of the
Quota, such as (without limitation) the filing of a petition for the bankruptcy (csõdeljárás) or
insolvency (felszámolási eljárás) of the Company, the initiation of an execution in respect of the
Quota in accordance with Court Enforcement Act or similar laws applicable in other jurisdictions,
the termination of the Company’s commercial activities or the winding up of the Company;

(d) at its own cost and expense execute and do all such acts and things as the Chargee may require
from time to time to create, perfect or protect the Charge or any part thereof or to facilitate the
realisation of the Charge or any part thereof and as are required in the exercise of all powers,
authorities and discretion vested in the Chargee in respect of the Charge or any part thereof;

(d) at its own cost and expense from time to time obtain, comply with the terms of and do all that
is necessary to maintain in full force and effect all authorisations, approvals, licences and
consents required by the laws and regulations of Hungary to enable it to lawfully execute and
perform its obligations under this Agreement and to ensure the legality, validity, enforceability
or admissibility in evidence (subject to translation into the Hungarian language) in Hungary of
this Agreement;

(e) not reserve a priority position in respect of the Quota under Section 264 (2) of the Civil
Code;

(f) ensure that the Charge created hereunder shall be at all times first ranking Charge over the
Quota and not sell, transfer or otherwise dispose of any or all of its rights in the Quota (whether
with or without consideration), not encumber the Quota or grant any further security interest or
any right over the Quota to any other person, during the term of this Agreement

9

 

other than as permitted under the Loan and Guarantee Agreement or with the prior written consent of the Chargee;

(g) ensure and make all steps necessary in order to effect that its 100% (i.e. one hundred percent)
ownership interest in the Company is become registered with the Court of Registration within 90
(i.e. ninety) days following the date of this Agreement;

(h) not pass any Quotaholders’ Resolution (taggyûlési határozat) (i) to amend the Articles of
Association of the Company in a manner that may adversely effect on the Chargee’s rights hereunder
without the prior written consent of the Chargee or (ii) to dissolve and liquidate the Company or
to authorise an application for the bankruptcy (csõdeljárás) or insolvency (felszámolási eljárás)
of the Company or (iii) to reduce the registered capital (törzstõke) of the Company, save for a
decrease of registered capital to be made in accordance with a mandatory statutory requirement set
out in the relevant provisions of the Companies Act;

(i) after an Event of Default which is continuing unremedied and unwaived has occurred, only pass
Quotaholders’ Resolutions with the prior written consent of the Chargee; and

(j) promptly provide the Chargee upon its request with statements on such other matters and
information as the Chargee may from time to time request.

7. CHARGEE’S RIGHTS

7.1 The powers conferred by this Agreement on the Chargee in relation to the Quota or any part
thereof shall be in addition to and not in substitution for the rights conferred on the Chargee by
applicable law except insofar as they are expressly excluded by this Agreement and, where there is
any ambiguity or conflict between the rights contained in any such applicable law and those
conferred by this Agreement, then the terms of this Agreement shall prevail to the extent permitted
by such law.

7.2 The Chargee shall not, in any circumstances, be liable to the Chargor for any loss or damage
arising from any act or omission of the Chargee in relation to the Quota or any part thereof or
from any exercise or non-exercise by the Chargee of any rights conferred upon it in relation to the
Quota or any part thereof pursuant to this Agreement or by applicable law unless such loss or
damage shall be caused by the gross negligence or wilful misconduct of the Chargee.

7.3 The Chargee shall be entitled at any time to take any such action as it in its reasonable
discretion thinks fit for the purpose of protecting the security constituted by this Agreement and
the Chargor hereby agrees to indemnify the Chargee on demand against any losses incurred by the
Chargee in the protection or attempted protection of the security constituted by this Agreement.
For the avoidance of doubt, enforcement action shall be governed by Clause 8 of this Agreement.

7.4 The Chargee may, at any time and from time to time, delegate by power of attorney to any person
all or any of the rights which are for the time being exercisable by the Chargee hereunder in
relation to the Quota or any part thereof and the Chargee shall inform the Chargor of such a
delegation or appointment of a delegate.

7.5 The Chargee need not, before it exercises any of the rights conferred upon it by this Agreement
or by law (i) initiate proceedings or obtain a judgement against the Chargor or any other person in
any court; (ii) make or file a claim in a bankruptcy or liquidation with respect to the Chargor or
any other person; or (iii) enforce any of its rights in respect of any of the Secured Obligations,
except as required by Hungarian law from time to time.

8. ENFORCEMENT

8.1 The Chargor hereby acknowledges that the Chargee may enforce the Charge upon an Enforcement
Event.

8.2 Upon the occurrence of an Enforcement Event the Charge may be enforced, pursuant to the
decision of the Chargee made in its sole discretion, by way of:

10

 

(a) any court enforcement proceedings available under the Court Enforcement Act (with or without
any court proceedings in relation to the merit of the claim pursuant to Section 255 (1) of the
Civil Code);

(b) to the extent possible under Hungarian law, sale of the Quota by the Chargee (as set out in
Section 257(2) of the Civil Code);

(c) if the Chargee so elects, it can instruct Hungarian institution instructed by the Chargee
engaged as business activity or ex officio in granting secured loans or arranging auctions, to sell
the Quota, which sale shall be effected by a public auction to the highest bidder (as set out in
Section 257 (3) of the Civil Code); or

(d) joint sale by the Chargee and the Chargor.

8.3 The Parties hereby agree that without prejudice to the provisions of Clause 8.2, upon the
occurrence of an Enforcement Event, at the request of the Chargee, the Parties will enter into
negotiations in good faith regarding the possible acquisition of any or all of the Quota by the
Chargee.

8.4 If the Chargee elects to conduct the enforcement in accordance with Articles 10(b), 20 and 21
of Court Enforcement Act, then it shall become immediately entitled to so enforce the Charge upon
obtaining the Declaration after the elapse of the payment date set by the Chargee in the Demand
without receipt of the payment in full of the amount set out in the Demand.

8.5 If the enforcement is conducted in accordance with Clause 8.2 (b) to (d), then the sale of the
Quota shall be subject to the following conditions: (i) the bidder must offer a minimum purchase
price of the Quota being at least at 50% (i.e. fifty percent) of the fair market value as
determined by an independent expert of international repute (such expert is to be selected by the
Chargee, hereafter the “Expert”); and (ii) the sale must be completed within 12 (i.e. twelve)
months of the Chargor receiving a written notice from the Chargee of its intention to proceed with
the sale of the Quota in accordance with Clause 8.2 (b) to (d). For the avoidance of doubt the
Chargee will be considered to have acted to obtain the best price reasonably obtainable where it
accepts the highest bid offered during the sale for the Quota.

8.6 The Chargor shall, upon the request of the Chargee, in the case of an Enforcement Event,
deliver any document relating to the Company, which is required by the Chargee for the purposes of
exercising its rights under this Agreement. The Chargor may request to receive a copy of the
valuation report obtained from the Expert by the Chargee in respect of the Quota and the Chargee
shall provide the same to the Chargor where the Chargee considers it reasonable to do so. The
appointed Hungarian institution under Clause 8.2 (c) above is entitled to request all necessary
documents for the sale from the Chargor.

8.7 The Chargee shall within 15 (fifteen) days before the sale notify the Chargor in writing of (i)
the method, (ii) the place and (iii) the date of such sale. The Chargee hereby confirms that it
will comply with the provisions of Government Decree 12/2003 (I. 30.), including but not limited to
notifying the Chargor of its intention to sell the Quota, at least 30 (thirty) days before the
intended sale.

8.8 If the Chargee is not capable by the termination of the period available for sale pursuant to
Clause 8.5 above to conduct the enforcement in accordance with Clause 8.2 (b); (c) or (d), it shall
immediately be entitled to conduct the enforcement in accordance with Clause 8.2 (a), and in that
case it shall become immediately entitled to enforce the Charge as set out in Clause 8.4 above.

8.9 The Chargee shall utilise the revenues of the sale towards the fulfilment of the Secured
Obligations after deducting costs incurred by it in connection with the sale of the Quota.

8.10 If, as a result of enforcement proceedings the Chargee receives proceeds from the sale of the
Quota in excess of the aggregate value of the Secured Obligations plus the costs of sale, it
shall within 30 (i.e. thirty) days of receipt of the proceeds, return the excess proceeds of such
sales to the Chargor.

11

 

8.11 No purchaser or other person shall be bound or concerned to see or enquire whether the right
of the Chargee to exercise any of the powers hereby conferred has arisen, nor be concerned with
notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

9. GENERAL PROVISIONS

9.1 Immediate Recourse

To the fullest extent allowed by applicable law, the Chargor waives any right it may have of first
requiring the Chargee to proceed against or claim payment from any other person or entity or
enforce any guarantee, suretyship or security granted by any other person or entity before
enforcing this Agreement and/or its rights hereunder or pursuant hereto.

9.2 Certificates

A certificate signed by any duly authorised officer of the Chargee setting forth any amount due to
IFC or from the Obligors in respect of the Secured Obligations shall be prima facie evidence of
such amount against the Obligors unless in case of manifest error or fraud on the part of the
Chargee.

9.3 Discharge

Where any discharge (whether in respect of this Agreement, or other Security Document for the
Secured Obligations or otherwise) is made in whole or in part or any arrangement is made on the
faith of any payment, security or other disposition which is subsequently avoided or must be
restored on bankruptcy (csõdeljárás), insolvency (felszámolási eljárás) or otherwise without
limitation, the liability of the Chargor under this Agreement and the rights of the Chargee created
hereby and pursuant hereto shall continue as if there had been no discharge or arrangement and the
foregoing shall serve as a condition precedent to any such discharge or arrangement. The Chargee
shall be under no obligation to challenge, contest or otherwise take any steps to remedy any
avoidance of any payment, security or other disposition or the restoration thereof by any
liquidator, receiver or similar officer on bankruptcy, insolvency or otherwise.

10. COSTS AND EXPENSES

Any and all:

(a) costs, charges and expenses (including, but not limited to, stamp duties, all notarial and
legal fees) incurred and all payments made by the Chargee in the lawful exercise of the powers
hereby conferred upon it (whether or not occasioned by any act, neglect or default of the Chargor)
in relation to the negotiation, preparation and administration of this Agreement, and any costs,
charges and expenses in relation to the execution, perfection or enforcement of this Agreement, the
realisation of the security granted hereunder as well as in connection with any variation,
amendment or supplement to any of the terms of this Agreement and/or any consent or waiver required
from the Chargee in relation to this Agreement, in each case regardless of whether the same is
actually implemented, completed or granted, as the case may be; and

(b) amounts expressed herein to be for the account of the Chargor but paid by the Chargee and any
amounts for which the Chargor has undertaken to indemnify or reimburse the Chargee,
shall be paid by the Chargor to the Chargee on first demand.

11. REMEDIES AND WAIVERS

No failure on the part of the Chargee to exercise, and no delay on its part in exercising, any
right or remedy under this Agreement will operate as a waiver thereof, nor will any single or
partial exercise of any right or remedy preclude any other or further exercise thereof or the
exercise of any other right or remedy. The rights and remedies provided in this Agreement are
cumulative and not exclusive of any rights or remedies provided by the chosen law, any applicable
laws of a foreign jurisdiction or the Financing Documents.

12. SEVERABILITY

12

 

If any of the terms hereof is or becomes invalid or unenforceable (or the security interests
purported to be created hereunder or pursuant hereto are ineffective) for any reason under the laws
of any jurisdiction or in relation to the Chargor, such invalidity or unenforceability shall to the
fullest extent possible under applicable law not affect its validity or enforceability in any other
jurisdiction or invalidate or make unenforceable any other term hereof. The parties hereto agree
that they will negotiate in good faith to replace any provision hereof held invalid, illegal or
unenforceable with a valid provision which is as similar as possible in substance to the invalid,
illegal or unenforceable provision.

13. ATTORNEY

To the fullest extent permitted by applicable law, the Chargor hereby appoints the Chargee, such
appointment being made for the benefit of the Chargee and shall be effective from the date of this
Agreement, to be its true and lawful attorney (with full power of substitution and delegation) for
and on behalf of the Chargor and in its name or in the name of the Chargee and as the Chargor’s
attorney in act and deed to sign, execute, seal, deliver, acknowledge, file, register and perfect
any and all such assurances, documents, instruments, agreements (including any agreements to which
the Chargee itself is a party, certificates and consents and to do any and all such acts and things
as the Chargor themselves could do in relation to the Quota or in relation to any matters dealt
with in this Agreement and which the Chargee may reasonably deem to be necessary in order to give
full effect to the purposes of this Agreement. The Chargor will ratify and confirm whatever the
Chargee shall do or cause to be done in pursuance of the powers conferred to it hereunder.

14. TERMINATION

14.1 This Agreement will terminate when all Secured Obligations have been unconditionally and
irrevocably discharged or paid in full.

14.2 The Chargee is, at all times, entitled to terminate (in whole or in part) the Charge and/or
limit the Secured Obligations to those obligations as specified in a written notification to the
Chargor. The Chargor agrees in advance to such termination (in whole or in part) or to such
limitation.

14.3 Upon termination of this Agreement, the Chargee shall promptly (but in any event no later than
30 days) issue all certificates or other documents as are required by law or requested reasonably
by the Chargor in order that the Charge can be deleted from the Registry of Charges.

15. NOTICES

15.1 Communications in writing
Any communication to be made under or in connection with this Agreement shall be made in writing
and, unless otherwise stated, may be made by fax or letter.

15.2 Addresses
The address and fax number (and the department or officer, if any, for whose attention the
communication is to be made) of each Party for any communication or document to be made or
delivered under or in connection with this Agreement is:

(a) Notices to the Chargor shall be delivered to the following address:

Address: 4809 Cole Avenue Suite 108 Dallas, Texas 75205 USA

Attention: Douglas W. Weir

Facsimile: (214) 559 3933

(b) Notices to the Company shall be delivered to the following address:

Address: 4809 Cole Avenue Suite 108 Dallas, Texas 75205 USA

Attention: Douglas W. Weir

Facsimile: (214) 559 3933

(c) Notices to the Chargee shall be delivered to the following address:

Address: 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 USA

Facsimile: (202) 974-4322

13

 

Attention: Director, Oil, Gas, Mining and Chemicals Department

or any substitute address or fax number or department or officer as the Chargor or the Company may
notify IFC (or IFC may notify to the Chargor and the Company, if a change is made by IFC) by not
less than five Business Days’ notice.

15.3 Delivery

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

(a) if by way of fax, when received in legible form; or

(b) if by way of letter, when it has been left at the relevant address or [five] Business Days
after being deposited in the post postage prepaid in an envelope addressed to it at that address,
and, if a particular department or officer is specified as part of its address details provided
under Clause 15.2 (Addresses), if addressed to that department or officer.

15.4 Notification of address and fax number

Promptly upon receipt of notification of an address and fax number or change of address or fax
number pursuant to Clause 15.2 (Addresses) or changing its own address or fax number IFC shall
notify the Chargor and the Company.

15.5 English language

15.5.1 Any notice given under or in connection with this Agreement must be in English.

15.5.2 All other documents provided under or in connection with this Agreement be:

(a) in English; or

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

16. GOVERNING LAW

This Agreement shall be governed by, and construed in accordance with, Hungarian law.

17. JURISDICTION

The Parties agree that any dispute arising out of or in connection with this Agreement (including a
dispute regarding the existence, validity or termination of this Agreement or the consequences of
its nullity) (“Dispute”) shall be referred to a Hungarian court and that the Metropolitan Court of
Budapest shall have non-exclusive jurisdiction to settle any such Dispute.

18. LANGUAGE

This Agreement shall be executed in English only. This Agreement may be translated into Hungarian
but, in the event of any conflict between the two versions, the English version shall prevail.

19. AMENDMENTS

This Agreement may be amended only by a written instrument executed by the Parties and, in case of
an amendment effecting the registered data in the Registry of Charges, in the form of a notarial
deed.

     The Parties hereby request the notary to register the above mentioned pledge on quota in the
Registry of Pledges.

     Parties hereby declare that they are aware of being bound by the obligation of reporting
(submitting a petition for the registration of changes) if the mortgage relationship contemplated
in this contract changes or terminates, or if the data recorded in the mortgage register are
modified (collectively: Change), as defined in IM Decree no. 11/2001 (September 1) on the
Definition of the detailed rules of the mortgage register.

     We the undersigned Contracting Parties declare, that we know and acknowledge, all the
obligations result from the Agreements incorporated into this notarial deed, and bind ourselves
to fulfil contractually, promptly, and remnantlessly all the obligations, and to comply
remnantlessly with the terms and conditions stipulated in them.

14

 

     The Contracting Parties being informed hereby by the Notarysubstitute that a civil enforcement
may be initiated upon a notarial deed before the Court, if that notarial deed including duty of
both the performance and the valuable consideration thereof, stating names and adresses of both the
obligee and the obligor, the subject, amount and title of the commitment, the mode and terms of
performance, provided that the claim being enforceable by an action under this title and the
performance being in arrears.

     In case of deficiency of the above mentioned data, their existence, amount, quantity,
fulfillment must be proved by notarial document. In case of maturity dependant on condition or
terms, the fulfillment of the condition or terms must be proved by notarial document.—

     The Parties hereby acknowledge the warning of the Notarysubstitute, that a Notarial deed,
concluded according to the above facts, and rules is a European executory deed (relating to the not
disputed claim for money), in so far as it is in conformity with the conditions of direct judicial
enforceability, to be applied in the territory of the Republic of Hungary, in respect to the fact,
that the deed is entered into a notarial deed by a notary as public authority.

     Certified office copies of this deed can be delivered to the parties unrestrictedly.

     I, the undersigned Notarysubstitute have drawn the original of this Notarial Deed. After
reading it out and summing up the contents and legal consequences of it to the appearers and after
they have declared to have taken due notice of the contents of the instrument which is fully
complying to their will, this instrument is signed by the appearers and by me, Notarysubstitute.

     Budapest, this 28th (twenty-eighth) day of February in the year of 2007 (two
thousand and seven).

     Mr. Wetzlaugk, Travis Karl-Paul sm., TOREADOR RESOURCES CORPORATION, dr. Mestyán, Szabolcs
sm., INTERNATIONAL FINANCE CORPORATION, Mr. Wetzlaugk, Travis Karl-Paul sm. Toreador International
Holding Limited Liability Company, Dr. Csernák András s.m. Notarysubstitute L.S.

     Countersigned: Dr. Tóth, Ádám Notary sm.

15

 

     It is hereby certified that the present Certified Office Copy being true and faithful copy of
the original of the notarial deed deposited with the archives of the Notary under registration
number above.-

     Budapest, this 01st (first) day of March in the year of 2007 (two thousand and
seven).

Dr. Csernák András

Notarysubstitute

16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]