Document:

EXHIBIT 10.11

 

SUPPLEMENTARY AGREEMENT No.1

to the General Loan Agreement

(on establishment of loan limit)

No.2000/03/40 dated June 02,
2003

 

The present Supplementary Agreement No.1 (hereinafter – Supplementary Agreement) to the General
Loan Agreement (on establishment
of loan limit) No.2000/03/40
dated June 02, 2003 (hereinafter
– Agreement) has been concluded in
Almaty on January 28, 2005 between:

 

Joint-Stock Company “Bank TuranAlem”, hereinafter referred to as
the «Creditor», in the person of Vice Chief
Executive Officer Mr. Saparov Arsen Kuandykovich acting on the basis of the
Power of Attorney No. 07/1 dated January 05,2005,

 

Subsidiary Open Joint-Stock Company “Caspi Neft TME”, hereinafter referred to as the «Borrower», in the person of Chief Executive Officer Mr.
Anatole Kunevich, acting on the basis the Charter,

 

TransMeridian Exploration Inc. (BVI), hereinafter referred to as the «Shareholder 1», in the person of President Mr. Lorrie
Olivier acting on the basis the Charter, and

 

Bramex Management Inc., hereinafter referred to as
the «Shareholder 2», in the person of
authorized representative Mr. Sadykov Kairat Aryngaziyevich., acting on the
basis of the Power of Attorney dated October 18, 2004.

 

Hereinafter the
Creditor, the Borrower, the Shareholder 1 and the Shareholder 2 under the
present Supplementary Agreement jointly referred to as the «Parties», and separate as the «Party».

 

Taking into consideration Agreement dated January 28, 2005, the
Parties have agreed to amend and modify the Agreement as follows:

 

1. The Creditor grants
to the Borrower an extension for payment of all next payments under the
Agreement until July 15, 2005, including the principal amount of a debt
under the outstanding credits, subject to payment within the limits of the specified
period of the extension, accrued interest for using Credits (at the standard
rate of 15% per annum), any other payments which are subject to payment within
the limits of the specified period of extension according to the contracts and
agreements which have been executed between the Parties within the framework of
the Agreement.

 

All payments of the
principal amount of a debt under the Credits and the Interest, which should
have been paid by the Borrower for the period of extension discussed in paragraph
1 of herein, according to the terms of the Agreement shall be made by the
Borrower in full concurrently with planned payments on the corresponding Loan
Agreements, provided on July 2005.

 

3. The Creditor within the extension period
stipulated by paragraph 1 of this Supplementary Agreement, accrues the Interest
for the total amount of the principal debt under the Agreement, basing on the
actual debt amount. At that, the Company undertakes to make payments on payment
of the Interest accrued according to the provisions of this sub-paragraph, in
full measure.

 

4. To add sub-item 7.1.17. to the Item 7.1. of the article 7 of the
Agreement as follows:

 

«7.1.17.                           Nonfulfillment by the Shareholder 1 of its obligations
determined in items 2.1.1-2.1.3., item.2.1. and/or item 2.2. of the Agreement
dated January 28, 2005.

 

1

 

5. All other conditions of the Agreement unaffected by the
present Supplementary Agreement shall remain unchanged.

 

6. This Agreement shall become effective immediately upon
it’s signing by the authorized representatives of the Parties and shall remain
in effect till the date of complete performance of obligations by the Parties.

 

7. Supplementary Agreement is an integral part of the
Agreement.

 

This Agreement has been executed in 5 (five) original exemplars having
equal legal force, two exemplars are for the Creditor and one for the Borrower,
the Shareholder 1 and the Shareholder 2

 

The present Supplementary Agreement has been signed by the authorized
hereto:

 

	
   

  	
   

  	
  On behalf
  of the CREDITOR

  	
   

  	
   

  
	
   

  	
   

  	
  Vice Chief Executive
  Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/: Saparov A.K.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On behalf
  of the BORROWER

  	
   

  	
   

  
	
   

  	
   

  	
  Chief Executive Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/: Kunevich A.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On behalf
  of the SHAREHOLDER1

  	
   

  	
   

  
	
   

  	
   

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/: L. Olivier

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  On behalf
  of the SHAREHOLDER 2

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized representative

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/: Sadykov K.A.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  stamp
  here

  	
   

  	
   

  
												

 

2Exhibit 10.12

 

AGREEMENT

 

	
  Almaty

  	
   

  	
  January 28,
  2005

  

 

This agreement
(hereinafter – Agreement) is executed and signed
between:

 

“Caspi
Neft TME” Subsidiary Open Joint Stock Company (hereinafter –
the Company),
represented by its Chairman of the Board, Mr. Anatole Kunevich, acting on the
basis of the Charter,

 

“Bank
TuranAlem” Joint Stock Company (hereinafter – BTA), represented by its Deputy Chairman of the Board, Mr.
Saparov Arsen Kuandykovich, acting on the basis of the Power of Attorney # 07/1
dated January 05, 2005,

 

TransMeridian
Exploration Inc. (BVI) (hereinafter – TME),
represented by its President Mr. Lorrie Olivier, acting on the basis of the
Articles of Associations, and

 

Bramex
Management Inc. (hereinafter – BM),
represented by Mr. Sadykov A. Kairat, acting on the basis of the Power of
Attorney dated October 18, 2004;

 

Jointly named as “the
Parties”, and separately – as a “Party”. At that, BM and TME may be jointly
referred to as “the Shareholders”, 

 

With
regard to that BTA is a Creditor of the Company according to the General Loan
Agreement # 02-0402-2 of February 04, 2002 (bank loan agreement)
(hereinafter – “GLA1”) and

 

the
General Loan Agreement (on establishment of the loan limit) # 2000/03/40
dated June 02, 2003 (hereinafter – “GLA2”), hereinafter GLA1 and GLA2 are
collectively referred to as “ Loan Agreements”,

 

have
entered into this agreement with regard to the following:

 

1. General Provisions

 

1.1.
TME grants to the Company the monies for conducting of operations for the
period of I – II quarters of year 2005, within the limits of the Company’s
Budget, approved by the Minute of the Board of Directors of the Company dated January 17,
2005, and by the Minute of the Minute of the Shareholders’ General Meeting
dated January 25, 2005 (hereinafter – “Approved
Budget”), in amount $ 10 000 000 (ten million USD). The
monies shall be contributed to the Company in the order and within the terms,
provided by this Agreement. 

 

1.1.      BTA,
upon the fact of fulfillment by TME of undertakings listed in paragraphs 2.1.1.
– 2.1.2. of paragraph 2.1. of herein, immediately revokes the Notification No.06-31/4445 dated September 17, 2004
with a requirement of early repayment by the Company of the full amount of
indebtedness to BTA, as to the Creditor on the Loan Agreements, addressed to
the Company, as well as all further notifications on the Company’s failure fulfill
its obligations under the Agreements sent to the Company and/or to the
Shareholders that has been sent to the 
or to the Shareholders Company and/or to the Shareholders before the
date of signing of this Agreement, including the notifications on reverse of
collection to the assets of the Company and Shares of the Company owned by the
Shareholders. 

 

1.3.
In addition, BTA, on BM’s petition provides to the Company an extension on
payment of all regular payments under the Loan Agreements up to July 15,
2005, including the amount of principal debt under the loans granted to the
Company, due for payment within the said period of extension, the Interest
charged for using of the Loans and all other payments that shall be paid to the
BTA by the Company as to the Creditor under the Loan Agreements, within the
said period of extension, as well as under the contracts and agreements
concluded between the Company and BTA within the framework of the Loan
Agreements. The provisions on extension that is granted by BTA in accordance
with the provisions of this paragraph will be additionally detailed in
Addendums to the Loan Agreements and Addendums to the agreements concluded
within the frameworks of the Loan Agreements.

 

All
the payments that has to be executed by the Company to
BTA in accordance with the Loan Agreements within the extension period
discussed in the first part of this paragraph, shall be executed in the following
order: 

 

1

 

a)
payments on repayment of the principal debt under the loans and on payment of
the Interest according to the terms of GLA1 shall be executed by the Company in
full scale on July 15, 2005;

 

b)
payments on repayment of the principal debt under the loans and on payment of
the Interest according to the terms of GLA2 shall be executed by the Company in
full scale at the same time as the planned (regular) payments under the
corresponding loan agreements stipulated for July 2005;

 

c)
BTA, within the extension period foreseen by the first part of this paragraph,
charges the interest for the total amount of GLA1 and GLA2 basing on the actual
debt amount. At that, the Company undertakes to make payments on payment of the
interest charged according to the provisions of this sub-paragraph, in full
scale.

 

1.4.
Within the extension period discussed in paragraph 1.3. of herein, BTA will not
demand early repayment of the amount of the Company’s debt under the Loan
Agreements, in full or in part, by the Borrower or by other persons/entities
including the Shareholders of the Company, except the cases when TME breaks its
obligations under this agreement, directly foreseen by paragraphs 2.1.1. –
2.1.3. of paragraph 2.1. and paragraph 2.2. of this Agreement. 

 

2. UNDERTAKINGS OF THE SHAREHOLDERS OF THE COMPANY

 

2.1.
TME hereby undertakes an obligation to grant to the Company the monies for
conducting of operations within I – II quarters of year 2005, approved by the
Minute of the Board of Directors of the Company dated January 17, 2005 and
by the Minute of the Shareholders’ General Meeting dated January 25, 2005
(hereinafter – ‘Approved Budget’), in amount of $ 10 000 000 (ten
millions of USD). The monies shall be contributed in the following order:

 

2.1.1.
The first amount of $5 000 000 (five millions USD) shall be
contributed to the Company not later than on February 15, 2005. Te date of
receipt of monies by the Company from TME shall be the date of credit of monies
to the correspondent account of BTA;

 

2.1.2.
TME not later than on February 15, 2005 issued a corporate guarantee
addressed to BTA and Company, for the second amount of $ 5 000 000
(five millions USD). The said corporate guarantee shall be accompanied with all
necessary documents (guarantees and warranties) confirming and guarantying the
authority and full capacity of the person signing of the guarantee on behalf of
TME.

 

2.1.3.
The second amount of $ 5 000 000 (five millions USD) shall be
contributed by TME to the Company not later than on April 25, 2005.

 

2.1.5.
Granting of monies by TME to the Company according to the terms of this
Agreement (paragraphs 2.1.1. and 2.1.3.) 
shall be executed as the loans on the following terms:

 

a)
without payment by the Company of the Interest for using of this loan;

 

b) the
term for using of the loan shall be not less than five (5) years;

 

c)
with providing to the Company of grace period for repayment of the loan not
less than for 2 (two) years.

 

2.2.
TME as well undertakes an obligation to provide for consideration of the
Company and BTA, within the term before July 25, 2005, an offer of stable
and trustworthy financial institute on financing of the Company’s activity for
III and IV quarter of year 2005 and 2006. At that, this offer shall contain
specific terms on financing of the Company that shall meet both interests of
the Company and Shareholders.

 

2.3.
BM, for its turn, undertakes to apply to BTA on granting to the Company of
extension period for any payments that shall be executed by the Company in the
frameworks and on the terms of Loan Agreements.

 

2

 

3. RIGHT OF BTA TO REQUIRE PRE-TERM PAYMENT-OFF OF
THE DEBT

 

3.1. In case TME fails to
fulfill its undertaking to contribute to the Company the monies, as it is
stated by paragraphs 2.1.1. – 2.1.3. of paragraph 2.1. of herein and/or
undertaking of paragraph 2.2. of herein, BTA reserve a right to demand of
pre-term repayment of the full amount of Company’s debt to BTA under the Loan
Agreements and take all measures for protection of its interests as a creditor,
including, but not limited to impose of collection to the pledged assets of the
Company and/or to the shares of the Company, owned by the Shareholders. 

 

At
that, the extension on payments within the framework of the Loan Agreements,
provided by BTA to the company as per paragraph 1.3. of this Agreement, does
not anyway limit the right of BTA for declaring of the demands to the Company
on pre-term repayment of debt under the Loan agreements in full in cases
foreseen by this Agreement or by the Loan Agreements.) 

 

3.2.
For the purposes of paragraph 3.1. of this Agreement, TME’s failure to
contribute money into the Company, fully or in part, as it is stipulated by provisions
of this Agreement, and/or TME’s failure to fulfill an obligation defined in
paragraph 2.2. of this Agreement, will be considered as a ground for
declaration by BTA of the demand to the Company on pre-term repayment of the
amount of debt under the Loan Agreements, fully or partially. 

 

3.3. In case TME fulfills
all its obligations, listed in paragraphs 2.1.1.– 2.1.3. of paragraph 2.1 of
herein and in paragraph 2.2. of herein, BTA undertakes not demand from the
Company of pre-term repayment of the amount of the amount of the debt.

 

However, the Parties
agree, that this waiver does not limits the right of BTA to decline
unilaterally fulfillment of the Loan Agreements and demand of pre-term
repayment of the full amount of the debt under the Loan agreements on the basis
of the foundations directly stipulated by this Agreement or by the Loan
Agreements.  

 

3.4.
In case BTA makes a decision to require from the Company of pre-term repayment
of the full amount of the debt under the Loan Agreement, as it is prescribed by
paragraph 3.1 of this Agreement, BTA undertakes to notify the Company at least
in thirty days in advance before the required date of repayment.

 

4. ADDITIONAL TERMS

 

4.1.
This Addendum is executed in Russian and English, in four counterparts, each
having equal legal force.  In the event
there is a conflict between the Russian and English versions, the Russian
version of this Addendum shall prevail.

 

4.2. Hereby the Parties agree and warrant that the
representatives of the Parties signing this Agreement are properly authorized
and delegated and have the right to sign this Agreement.  The Parties acknowledge and agree that, after
signing of this Agreement by their authorized representatives, the provisions
of this Agreement become binding upon the Parties and the Parties shall have no
right to refer to the absence of proper authorities of their representatives as
a reason for the invalidation of the Agreement.

 

4.3.
This Agreement shall become effective upon its signing by the authorized
representatives of the Parties.

 

7. LEGAL ADDRESSES AND DETAILS OF THE PARTIES:

BTA:

Bank
TuranAlem JSC,

97
Zholdasbekov Str., Microdistrict Samal-2,

050051 Almaty, Republic of Kazakhstan,

IIK
300166019 with the Payment Systems Office of the National Bank of the Republic
of Kazakhstan,

BIK
190501319, RNN 600900114104.

 

3

 

COMPANY:

“CASPI
NEFT TME” SOJSC

50 A)
Gazizy Zhubanovoi Str., Aktobe,

463000,
Republic of Kazakhstan

RNN 600900159346

 

S/account
# 35467925 (Kazakhstan Tenge)

 

TransMeridian
Exploration Inc. BVI

397
North Sam Houston Pkwy, Suite #300, Houston Texas 77060, USA

 

BRAMEX
MANAGEMENT INC.

Sea
Meadow House, Blackburn Highway, P.O.B. 116, Road Town, Tortola, British Virgin
Islands

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]