Document:

ex10958k080510.htm

    
      
         

      

      
         

        
          

        

      

      
         

        
          
            	
                    CLIFFORD

                    CHANCE

                  	
                    CLIFFORD
      CHANCE LLP

                     

                  
	
                    FINAL
      VERSION

                  

          

          

        

      

    

    
      	
              Dated
      5 August 2010

            
	
              FX
      ENERGY POLAND SP. Z O.O.

              AS
      BORROWER

               

              WITH

               

              FX
      ENERGY, INC.

              FX
      ENERGY NETHERLANDS PARTNERSHIP C.V. AND

              FX
      ENERGY NETHERLANDS B.V.

              AS
      GUARANTORS

               

              ARRANGED
      BY

               

              THE
      ROYAL BANK OF SCOTLAND PLC

              ING
      BANK N.V.

              KBC
      BANK NV

              AS
      MANDATED LEAD ARRANGERS

               

              WITH

               

              THE
      ROYAL BANK OF SCOTLAND PLC

              ACTING
      AS AGENT

               

              WITH

               

              THE
      ROYAL BANK OF SCOTLAND PLC

              ACTING
      AS TECHNICAL BANK

               

              WITH

               

              THE
      ROYAL BANK OF SCOTLAND PLC

              ACTING
      AS SECURITY TRUSTEE

               

              AND

               

              THE
      FINANCIAL INSTITUTIONS LISTED HEREIN

               

               

            
	 	 	 
	 
      	
               

              USD
      55,000,000

              SENIOR
      RESERVE BASE LENDING FACILITY AGREEMENT

            	 
      

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              CONTENTS

            

    

    

    
      	
              Clause

            	
              Page

            
	
              1.

            	 	
              Definitions
      and Interpretation

            	
              1

            
	
              2.

            	 	
              The
      Facility

            	
              29

            
	
              3.

            	 	
              Purpose

            	
              29

            
	
              4.

            	 	
              Conditions
      of Utilisation

            	
              30

            
	
              5.

            	 	
              Utilisation
      – Loans

            	
              32

            
	
              6.

            	 	
              Projections

            	
              34

            
	
              7.

            	 	
              Project
      Accounts

            	
              43

            
	
              8.

            	 	
              Repayment

            	
              46

            
	
              9.

            	 	
              Prepayment
      and Cancellation

            	
              47

            
	
              10.

            	 	
              Interest

            	
              52

            
	
              11.

            	 	
              Interest
      Periods

            	
              53

            
	
              12.

            	 	
              Changes
      to the Calculation of Interest

            	
              54

            
	
              13.

            	 	
              Fees

            	
              55

            
	
              14.

            	 	
              Tax
      Gross Up and Indemnities

            	
              56

            
	
              15.

            	 	
              Increased
      Costs

            	
              60

            
	
              16.

            	 	
              Other
      Indemnities

            	
              62

            
	
              17.

            	 	
              Mitigation
      by the Lenders

            	
              63

            
	
              18.

            	 	
              Costs
      and Expenses

            	
              64

            
	
              19.

            	 	
              Guarantee
      and Indemnity

            	
              66

            
	
              20.

            	 	
              Representations

            	
              70

            
	
              21.

            	 	
              Information
      Undertakings

            	
              78

            
	
              22.

            	 	
              General
      Undertakings

            	
              87

            
	
              23.

            	 	
              Events
      of Default

            	
              101

            
	
              24.

            	 	
              Changes
      to the Lenders

            	
              108

            
	
              25.

            	 	
              Changes
      to the Obligors

            	
              112

            
	
              26.

            	 	
              Role
      of the Agent and the Mandated Lead Arrangers

            	
              114

            
	
              27.

            	 	
              Conduct
      of Business by the Finance Parties

            	
              121

            
	
              28.

            	 	
              Sharing
      among the Finance Parties

            	
              122

            
	
              29.

            	 	
              Payment
      Mechanics

            	
              124

            
	
              30.

            	 	
              Set-off

            	
              127

            
	
              31.

            	 	
              Notices

            	
              127

            
	
              32.

            	 	
              Calculations
      and Certificates

            	
              129

            

    

    

     

    
      
        
          
            	
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              33.

            	 	
              Partial
      Invalidity

            	
              129

            
	
              34.

            	 	
              Remedies
      and Waivers

            	
              130

            
	
              35.

            	 	
              Amendments
      and Waivers

            	
              130

            
	
              36.

            	 	
              Confidentiality

            	
              131

            
	
              37.

            	 	
              Counterparts

            	
              134

            
	
              38.

            	 	
              Governing
      Law

            	
              135

            
	
              39.

            	 	
              Enforcement

            	
              135

            
	
              Schedule
      1

            	 	
              The
      Original Parties

            	
              137

            
	
              PART
      I

            	 	
              The
      Original Borrower

            	
              137

            
	
              PART
      II

            	 	
              The
      Original Guarantors

            	
              138

            
	
              PART
      III

            	 	
              The
      Original Lenders

            	
              139

            
	
              Schedule
      2

            	 	
              Conditions
      Precedent

            	
              140

            
	
              PART
      I

            	 	
              Conditions
      Precedent to Initial Utilisation

            	
              140

            
	
              PART
      II

            	 	
              Conditions
      Precedent Required To Be Delivered By An Additional
    Guarantor

            	
              144

            
	
              Schedule
      3

            	 	
              Reduced
      Commitments

            	
              147

            
	
              Schedule
      4

            	 	
              Initial
      Borrowing Base Assets

            	
              148

            
	
              Schedule
      5

            	 	
              Utilisation
      Request

            	
              149

            
	
              Schedule
      6

            	 	
              Mandatory
      Cost Formulae

            	
              150

            
	
              Schedule
      7

            	 	
              Form
      of Transfer Certificate

            	
              152

            
	
              Schedule
      8

            	 	
              Form
      of Assignment Agreement

            	
              154

            
	
              Schedule
      9

            	 	
              Form
      of Compliance Certificate

            	
              157

            
	
              Schedule
      10

            	 	
              Form
      of Guarantor Accession Letter

            	
              158

            
	
              Schedule
      11

            	 	
              Existing
      Financial Indebtedness

            	
              159

            
	
              Schedule
      12

            	 	
              Schedule
      of Field Documents

            	
              160

            
	
              Schedule
      13

            	 	
              LMA
      Form of Confidentiality Undertaking

            	
              162

            
	
              Schedule
      14

            	 	
              Group
      Structure Chart

            	
              167

            
	
              Schedule
      15

            	 	
              Hedging
      Policy

            	
              168

            
	
              Schedule
      16

            	 	
              Timetables

            	
              171

            

    

     

     

    

      
        
          
            
              	
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    THIS AGREEMENT is dated 5
August 2010 and made

     

    BETWEEN:

     

    
      	
              (1)  

            	
              FX
      ENERGY POLAND SP. Z O.O. a limited liability
      company, established and organised under the laws of Poland with its
      registered office in Lipiny Stare at ul. Chałubińskiego 8, 00-613
      Warsaw, Poland, registered in the register of entrepreneurs of the
      National Court Register kept by the District Court for the Capital City of
      Warsaw in Warsaw, XII Commercial Department of the National Court Register,
      under number KRS 0000025459, having NIP number 5212751481, having REGON
      number 012659847 (the “Borrower”);

            

    

     

    
      	
              (2)  

            	
              THE ROYAL BANK OF SCOTLAND PLC,
      KBC BANK NV, AND ING BANK N.V. as mandated lead arrangers (the
      “Mandated Lead
      Arrangers”);

            

    

     

    
      	
              (3)  

            	
              THE FINANCIAL INSTITUTIONS
      listed in Part III of Schedule 1 (The Original Parties)
      as lenders (the “Original
      Lenders”);

            

    

     

    
      	
              (4)  

            	
              THE SUBSIDIARIES of the
      Parent listed in Part II of Schedule 1 (The Original Parties)
      as original guarantors (together with the Parent the “ Original
      Guarantors”);

            

    

     

    
      	
              (5)  

            	
              THE ROYAL BANK OF SCOTLAND
      PLC as technical bank (the “Technical
      Bank”);

            

    

     

    
      	
              (6)  

            	
              THE ROYAL BANK OF SCOTLAND
      PLC as agent of the other Finance Parties (the “Agent”);
      and

            

    

     

    
      	
              (7)  

            	
              THE ROYAL BANK OF SCOTLAND PLC
      as security trustee for the Secured Parties (the “Security
      Trustee”).

            

    

     

    IT IS AGREED as
follows:

     

    SECTION
1

     

    INTERPRETATION

     

    
      	
              1.  

            	
              DEFINITIONS
      AND INTERPRETATION

            

    

     

    
      	
              1.1  

            	
              Definitions

            

    

     

    In this
Agreement:

     

     “Abandonment Date” means, in
relation to each Borrowing Base Asset and each Projection, the date shown in
such Projection on which it is reasonably anticipated that such Borrowing Base
Asset and/or the relevant facilities relating thereto will be
abandoned.

     

     “Abandonment Liabilities” means
the obligations and liabilities of the Group or any member(s) of the Group
relating to the abandonment of any Borrowing Base Asset (including any such
obligations and liabilities arising under any Joint Operating Agreement relating
to such Borrowing Base Asset).

     

    
      
        
          
            	
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    “Accession Letter” means a
document substantially in the form set out in Schedule 10 (Form of Guarantor Accession
Letter).

     

    “Accession Undertaking” means
an accession undertaking in the form specified in Schedule 2 (Form of Accession
Undertaking) of the Assignment of Intercompany Loans.

     

    “Account Bank” means ING Bank
Slaski S.A., or any of its successors or assignees from time to time under the
Account Bank Agreement.

     

    “Account Bank Agreement” means
the agreement dated on or about the date of this Agreement, pursuant to which
the operation of the Project Accounts are regulated.

     

    “Additional Guarantor” means a
company which becomes an Additional Guarantor in accordance with Clause 25
(Changes to the
Obligors).

     

     “Additional Cost Rate” has the
meaning given to it in Schedule 6 (Mandatory Cost
formulae).

     

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

     

     “Agent’s Spot Rate of Exchange”
means the Agent’s spot rate of exchange for the purchase of the relevant
currency with the Base Currency in the London foreign exchange market at or
about 11:00 a.m. on a particular day.

     

    “Agreed Form” in relation to
any document means the form of such document initialled by the Borrower and the
Agent for the purposes of identification hereof.

     

     “Applicable Law” means all laws
(including common or customary law), statutes, constitutions, by-laws,
ordinances, regulations or any other legislative measure, judgments, decrees,
decisions, writs, awards, orders, rules, directives, guidelines and policies of
any Governmental Authority, treaties or any other agreements to which a
Governmental Authority is a party, governing or applicable to the business and
financial operations of any obligor or that otherwise relate to a Borrowing Base
Asset or the exercise by a Lender of its rights under any Finance
Document.

     

     “Applicable Polish Licensing
Authority” means the minister of the Republic of Poland competent in
environmental matters from time to time including the Minister of Environmental
Protection, National Resources and Forestry, the Minister of the Environment
and/or his legal successor, and any other authority responsible for licensing of
mining operations in Poland at the given time.

     

     “Assignment Agreement” means an
agreement substantially in the form set out in Schedule 8 (Form of Assignment Agreement)
or any other form agreed between the relevant assignor and
assignee.

     

     “Assignment of Insurances”
means the agreement dated on or about the date of this Agreement between the
Borrower and the Security Trustee assigning the proceeds of insurances in
respect of the Borrowing Base Assets to the Security Trustee on behalf of the
Lenders.

     

    
      
        
          
            	
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     “Assignment of Intercompany
Loans” means agreement dated on or about the date of this Agreement
between the Borrower and the Security Trustee assigning the rights in respect of
intercompany loans granted between members of the Group.

     

    “Assignment of Gas Sale
Agreements” means agreement dated on or about the date of this Agreement
between the Borrower and the Security Trustee assigning the Borrower’s rights
under the gas sale agreements relating to the Roszków and Zaniemysl
Fields.

     

     “Assumptions” means the
Economic Assumptions and the Technical Assumptions.

     

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

     

     “Availability Period” means the period from
and including the date of this Agreement to and including to and including the
date falling one month prior to the Final Maturity Date.

     

     “Available Facility” means the
aggregate for the time being of each Lender’s Available Commitment.

     

     “Base Currency” means
dollars.

     

     “Borrowing Base Amount” means,
in relation to any Calculation Period, the amount (in dollars) reflected in each
Projection which is the lesser of A and B where:

     

    
      	
              (a)  

            	
              “A”
      is the field life cover amount calculated by dividing the Field Life NPV
      relating to that Calculation Period by 1.5;
and

            

    

     

    
      	
              (b)  

            	
              “B”
      is the loan life cover amount calculated by dividing the Loan Life NPV
      relating to that Calculation Period by
1.3.

            

    

     

     “Borrowing Base Asset” means
(a) the Petroleum Assets listed in Schedule 4 (Initial Borrowing Base
Assets) and (b) any New Borrowing Base Asset but, in the case of (a) or
(b), excluding any Petroleum Asset which has ceased to be designated a Borrowing
Base Asset in accordance with Clause 6 (Projections).

     

     “Borrower Update” means a
report or other information prepared by or on behalf of the Borrower which
updates the information and/or evaluation(s) contained in the most recent
Reserves Report and including any additional information and/or evaluation(s) as
the Technical Bank may reasonably require.

     

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

     

    
      	
              (a)  

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

            

    

     

    
      
        
          
            	
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    exceeds:

     

    
      	
              (b)  

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

            

    

     

     “Budget” means, in relation to
each Borrowing Base Asset, a budget for that Borrowing Base Asset setting out
all the costs that are to be incurred in connection with that Borrowing Base
Asset for the period covered by the budget.

     

     “Business Day” means a day
(other than a Saturday or Sunday) on which banks are open for general business
in London, New York and Warsaw.

     

     “Calculation End Date” means,
in relation to each Projection, the last day of the last Calculation Period in
which any item of Gross Expenditure and/or Gross Income is projected to
arise.

     

     “Calculation Period” means each
period of six months commencing on 1 January or 1 July of each
year.

     

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

     

     “Commitment”
means:

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

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

     

     “Compliance Certificate” means
a certificate substantially in the form set out in Schedule 9 (Form of Compliance
Certificate).

     

     “Computer Model” means the
computer model used to prepare the Initial Projection, as amended from time to
time in accordance with Clause 6.11 (Computer Model) or as
otherwise agreed between the Borrower and the Agent.

     

     “Confidential Information”
means all information relating to the Borrower, the Parent, the Guarantors, the
Group,  the Finance Documents or the Facility of which a Finance Party
becomes aware in its capacity as, or for the purpose of becoming, a Finance
Party or which is received by a Finance Party in relation to, or for the purpose
of becoming a Finance Party under, the Finance Documents or the Facility from
either:

     

    
      	
              (a)  

            	
              any
      member of the Group or any of its advisers;
or

            

    

     

    
      
        
          
            	
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              (b)  

            	
              another
      Finance Party, if the information was obtained by that Finance Party
      directly or indirectly from any member of the Group or any of its
      advisers,

            

    

     

    in
whatever form, and includes information given orally and any document,
electronic file or any other way of representing or recording information which
contains or is derived or copied from such information but excludes information
that:

     

    
      	
              (i)  

            	
              is
      or becomes public information other than as a direct or indirect result of
      any breach by that Finance Party of Clause 36 (Confidentiality);
      or

            

    

     

    
      	
              (ii)  

            	
              is
      identified in writing at the time of delivery as non-confidential by any
      member of the Group or any of its advisers;
or

            

    

     

    
      	
              (iii)  

            	
              is
      known by that Finance Party before the date the information is disclosed
      to it in accordance with paragraphs (a) or (b) above or is lawfully
      obtained by that Finance Party after that date, from a source which is, as
      far as that Finance Party is aware, unconnected with the Group and which,
      in either case, as far as that Finance Party is aware, has not been
      obtained in breach of, and is not otherwise subject to, any obligation of
      confidentiality.

            

    

     

     “Confidentiality Undertaking”
means a confidentiality undertaking substantially in a recommended form of the
LMA as set out in Schedule 13 (LMA Form of Confidentiality
Undertaking) or in any other form agreed between the Borrower and the
Agent.

     

     “CTA” means the Corporation Tax
Act 2009.

     

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

     

     “Delegate” means any delegate,
agent, attorney or co-trustee appointed by the Security Trustee.

     

    “Disclosed Litigation” means
(i) the case In re FX Energy,
Inc., Securities Litigation, United States District Court, District of
Utah, case no. 2:07-cv-00874 where all claims were dismissed, and the time for
appeal lapsed and (ii) the case Leilani York, derivatively on behalf
of nominal defendant FX Energy, Inc., plaintiff, v. David N. Pierce, Dennis B.
Goldstein, Arnold S. Grundvig, Jr., Richard Hardman, Tom Lovejoy, Jerzy
Maciolek, Clay Newton, Andrew W. Pierce, and David Worrell, defendants, and FX
Energy, Inc., nominal defendant, United States District Court, District
of Utah, case no. 2:08-cv-00143 which was stayed pending a decision in the case
referred to in (i) above, in each case as disclosed in the Parent’s SEC Form
10-K (2009), Item 3. Legal Proceedings.

     

    
      
        
          
            	
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     “Disruption Event” means either
or both of:

     

    
      	
              (a)  

            	
              a
      material disruption to those payment or communications systems or to those
      financial markets which are, in each case, required to operate in order
      for payments to be made in connection with the Facility (or otherwise in
      order for the transactions contemplated by the Finance Documents to be
      carried out) which disruption is not caused by, and is beyond the control
      of, any of the Parties; or

            

    

     

    
      	
              (b)  

            	
              the
      occurrence of any other event which results in a disruption (of a
      technical or systems-related nature) to the treasury or payments
      operations of a Party preventing that, or any other
  Party:

            

    

     

    
      	
              (i)  

            	
              from
      performing its payment obligations under the Finance Documents;
      or

            

    

     

    
      	
              (ii)  

            	
              from
      communicating with other Parties in accordance with the terms of the
      Finance Documents,

            

    

     

    (and
which (in either such case)) is not caused by, and is beyond the control of, the
Party whose operations are disrupted.

     

    “Dutch Letter of Release “
means the Dutch law governed letter of release dated on or about the date of
this Agreement, releasing the security constituted by the Dutch law governed
Deed of Pledge of Shares in FX Energy Netherlands B.V. dated 18 December 2006
..

     

    “Dutch Obligor” means each
Original Obligor which is incorporated, registered or organised in the
Netherlands.

     

    “Dutch Share Pledge” means the
agreement dated on or about the date of this Agreement between Frontier
Exploration Company and FX Drilling Company Inc. in their capacity of general
partners of FX Energy Netherlands Partnership C.V. as pledgor, the Security
Trustee and FX Energy Netherlands B.V. creating Security over the shares of FX
Energy Netherlands B.V.

     

    “Economic Assumption” means
each of the following economic assumptions, and the values ascribed to such
assumptions, upon which each Projection or draft Projection and, in each case,
the calculations and information therein are, or are to be, based:

     

    
      	
              (a)  

            	
              Petroleum
      prices;

            

    

     

    
      	
              (b)  

            	
              cost
      of funding;

            

    

     

    
      	
              (c)  

            	
              Tax;

            

    

     

    
      	
              (d)  

            	
              currency
      exchange rates;

            

    

     

    
      	
              (e)  

            	
              inflation
      rates;

            

    

     

    
      	
              (f)  

            	
              discount
      rates;

            

    

     

    
      
        
          
            	
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              (g)  

            	
              interest
      rates; and

            

    

     

    
      	
              (h)  

            	
              any
      other assumption that the Technical Bank and the Borrower agree shall be
      treated as “Economic Assumptions”.

            

    

     

     “Emergency” means a condition
or situation which in the opinion of the Borrower:

     

    
      	
              (a)  

            	
              materially
      and adversely affects, or is likely to materially and adversely affect,
      the ability of the Borrower to operate a Borrowing Base Asset safely as a
      Reasonable and Prudent Operator; or

            

    

     

    
      	
              (b)  

            	
              presents
      or is likely to present a physical threat to persons or property or the
      security, integrity or reliability of a Borrowing Base
    Asset.

            

    

     

    “English Letter of Release”
means the English law governed letter of release dated on or about the date of
this Agreement, releasing the security constituted by the English law governed
(i) Deed of Assignment of Insurance dated 17 November 2006 and (ii) Deed of
Assignment of Subordinated Debt dated  21 December 2006.

     

    “Environmental Decision” means,
in relation to each Borrowing Base Asset, decyzja
o środowiskowych uwarunkowaniach, being the report prepared by the head
of the relevant municipality or the regional director of environmental
protection in the area of the Borrowing Base Asset which sets out the findings
of the applicable environmental impact assessment and the steps required by the
operator of the Borrowing Base Asset to ensure that the Borrowing Base Asset
complies with Polish Applicable Law and Polish Environmental
Requirements.

     

     “Environmental and Mining
Claim” means any claim by any person in connection with (a) a breach, or
alleged breach, of Environmental and Mining Laws; (b) any accident, fire,
explosion or other event of any type involving an emission or substance which is
capable of causing harm to any living organism or the environment; or (c) any
other environmental contamination or other infringement of third party rights
resulting from the search for, exploration and/or exploitation of
minerals.

     

     “Environmental and Mining Laws”
means any law or regulation concerning (a) the protection of health and safety;
(b) environment; (c) any emission or substance which is capable of causing harm
to any living organism or the environment, or (d) geological works as well as
search for, exploration and exploitation of minerals.

     

     “Environmental and Mining
Licences” means all Authorisations necessary under Environmental and
Mining Laws for the ownership of an interest in any Petroleum Asset, the
exploitation of such Petroleum Asset (or any aspect thereof), and/or the
carrying out of the operations and activities relating to such Petroleum Asset
(including in particular Mining Concessions).

     

     “Equivalent Financings” means
any secured borrowing based financings arranged in the London market relating to
any oil and gas project in North West Europe (a) that are comparable to the
credit facilities contemplated by this Agreement; and (b) to which a Lender is a
party as lender.

     

    
      
        
          
            	
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    “Existing Facility Agreement”
means the existing USD 25,000,000 senior debt facility agreement dated 17th
November 2006 entered into between the Borrower as borrower, FX Energy, Inc., FX
Energy Netherlands Partnership C.V., FX Energy Netherlands B.V. as guarantors
and The Royal Bank of Scotland plc as lender.

     

    “Existing Security” means the
Security constituted by:

     

    
      	
              (a)  

            	
              the
      Deed of Pledge of Shares in FX Energy Netherlands B.V. dated 18 December
      2006;

            

    

     

    
      	
              (b)  

            	
              the
      Deed of Assignment of Insurance dated 17 November
  2006;

            

    

     

    
      	
              (c)  

            	
              the
      Deed of Assignment of Subordinated Debt dated  21 December
      2006;

            

    

     

    
      	
              (d)  

            	
              the
      Agreement for Pledges Over Shares in FX Energy Poland sp. z o.o dated 18
      December 2006;

            

    

     

    
      	
              (e)  

            	
              the
      Agreement for Registered Pledge Over Enterprise dated 18 December
      2006;

            

    

     

    
      	
              (f)  

            	
              the
      Agreement for Pledges Over Bank Accounts dated 18 December
      2006;

            

    

     

    
      	
              (g)  

            	
              the
      Agreement for Pledges Over Mining Usufruct Rights dated 18 December
      2006;

            

    

     

    
      	
              (h)  

            	
              the
      Agreement for Collateral Assignment of Rights Under Project Documents
      dated 18 December 2006; and

            

    

     

    
      	
              (i)  

            	
              the
      Agreement for Pledge Over Receivables under Joint Operating Agreements
      dated 18 December 2006.

            

    

     

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

     

     “Facility” means the borrowing
base reserve revolving loan facility made available under this Agreement as
described in Clause 2 (The
Facility).

     

     “Facility Office” means the
office or offices notified by a Lender to the Agent in writing on or before the
date it becomes a Lender (or, following that date, by not less than five (5)
Business Days’ written notice) as the office or offices through which it will
perform its obligations under this Agreement.

     

     “Fee Letter” means any letter
or letters dated on or about the date of this Agreement between the Mandated
Lead Arrangers and the Borrower (or the Agent and the Borrower or the Security
Trustee and the Borrower) setting out any of the fees referred to in Clause 
‎13
(Fees).

     

    
      
        
          
            	
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     “Field Documents”
means:

     

    
      	
              (a)  

            	
              in
      relation to each Borrowing Base
Asset:

            

    

     

    
      	
              (i)  

            	
              each
      Joint Operating Agreement and/ or unitisation and unit operating agreement
      relating to that Borrowing Base
Asset;

            

    

     

    
      	
              (ii)  

            	
              each
      agreement relating to the transportation, processing and/or storage of
      production from that Borrowing Base
Asset;

            

    

     

    
      	
              (iii)  

            	
              each
      agreement for the sale or marketing of production from that Borrowing Base
      Asset;

            

    

     

    
      	
              (iv)  

            	
              each
      material agreement relating to that Borrowing Base Asset and/or Petroleum
      produced therefrom (including any tariff and offtake contract, pipeline
      transmission contract, drilling contract, equipment supply contract,
      installation, construction, contract, maintenance and management
      contract), other than the agreements set forth in items (i) to (iii)
      above;

            

    

     

    
      	
              (v)  

            	
              any
      Authorisation required for the lawful construction, exploitation,
      development or operation of that Borrowing Base Asset or the production,
      transportation or sale of Petroleum therefrom (and including any Petroleum
      production or exploration licence and any particular Environmental and
      Mining Licenses);

            

    

     

    
      	
              (vi)  

            	
              any
      development plan filed with and/or approved by any relevant operating
      committee and/or any appropriate governmental or other regulatory
      authority relating to that Borrowing Base
Asset;

            

    

     

    
      	
              (vii)  

            	
              such
      rights (if any) to geological documentation with respect to the Borrowing
      Base Assets which the Borrower may
have;

            

    

     

    
      	
              (viii)  

            	
              any
      applicable Mining Usufruct
Agreement;

            

    

     

    
      	
              (ix)  

            	
              agreements
      providing real property rights for the locations of the Borrowing Base
      Assets;

            

    

     

    
      	
              (b)  

            	
              any
      documents relating to the acquisition by any member of the Group of any
      interests in any Borrowing Base Asset or of any entity holding the
      interest in such Borrowing Base Asset;
and

            

    

     

    
      	
              (c)  

            	
              any
      other document designated as such by the Borrower and the
      Agent.

            

    

     

     “Field Life NPV” means, in
relation to any Calculation Period, the amount (in dollars) of the net present
value (as at the first day of that Calculation Period) of the aggregate of the
Projected Net Revenues (the “relevant
amount”)  for that Calculation Period and for each Calculation
Period occurring thereafter which ends on or before the Calculation End Date
(being the discounted value of the relevant amount calculated, using the
Computer Model, by applying the relevant discount rate agreed or determined in
accordance with Clause 6 (Projections) to the relevant
amount).

     

    
      
        
          
            	
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     “Final Maturity Date” means the
earlier of:

     

    
      	
              (a)  

            	
              30th
      June 2015; and

            

    

     

    
      	
              (b)  

            	
              the
      Reserve Tail Date.

            

    

     

     “Finance Document”
means:

     

    
      	
              (a)  

            	
               this
      Agreement;

            

    

     

    
      	
              (b)  

            	
              the
      Mandate Letter;

            

    

     

    
      	
              (c)  

            	
              the
      Security Documents;

            

    

     

    
      	
              (d)  

            	
              the
      Intercreditor Deed;

            

    

     

    
      	
              (e)  

            	
              the
      Account Bank Agreement;

            

    

     

    
      	
              (f)  

            	
              the
      Hedging Agreements;

            

    

     

    
      	
              (g)  

            	
              any
      Fee Letter; and

            

    

     

    any other
document designated as a “Finance Document” by the Agent and the
Borrower.

     

     “Finance Party” means the
Agent, the Mandated Lead Arrangers, the Security Trustee or a
Lender.

     

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

     

    
      	
              (a)  

            	
              moneys
      borrowed;

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

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

            

    

     

    
      	
              (e)  

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

            

    

     

    
      	
              (f)  

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

            

    

     

    
      	
              (g)  

            	
              any
      derivative transaction entered into in connection with protection against
      or benefit from fluctuation in any rate or price (and, when calculating
      the value of any derivative transaction, only the marked to market value
      shall be taken into account);

            

    

     

    
      
        
          
            	
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              (h)  

            	
              any
      counter-indemnity obligation in respect of a guarantee, indemnity, bond,
      standby or documentary letter of credit or any other instrument issued by
      a bank or financial institution;

            

    

     

    
      	
              (i)  

            	
              any
      amount raised by the issue of redeemable
shares;

            

    

     

    
      	
              (j)  

            	
              any
      amount of any liability under an advance or deferred purchase agreement if
      one of the primary reasons behind the entry into this agreement is to
      raise finance; and

            

    

     

    
      	
              (k)  

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

            

    

     

     “Frontier Exploration Company”
means a corporation established and organised under the laws of Utah with its
registered office 3006 Highland Drive, Suite 206, Salt Lake City, UT 84106 and
having company number 1023353-0142.

     

     “FX Drilling Company, Inc.”
means a corporation established and organised under the laws of the state of
Nevada, United States of America, having its registered office at 311 South
Division Street, Carson City, Nevada 89703, United States of America and
registered with Secretary of State in Nevada, United States of America under
number C4629-1994.

     

    “FX Energy, Inc.” means a
corporation established and organised under the laws of Nevada with its
registered office 3006 Highland Drive, Suite 206, Salt Lake City, UT 84106 and
having company number C576-1989.

     

    “FX Energy Netherlands B.V.”
means a private company with limited liability (besloten vennootschap met beperkte
aansprakelijkheid) incorporated under the laws of The Netherlands having
its corporate seat in Utrecht, The Netherlands, having its registered office at
Locatellikade 1, 1076 AZ Amsterdam, The Netherlands with the trade register of
the commercial register of the chamber of commerce in Amsterdam  under
number 30132757.

     

    “FX Energy Netherlands Partnership
C.V.” means a limited partnership (commanditaire vennootschap),
organised under the laws of the Netherlands, having its registered office at
Locatellikade 1, 1076 AZ Amsterdam, The Netherlands and registered with the
Dutch Commercial Register under number 33298513 and represented by its general
partners (beherende
vennoten) being  FX Drilling Company, Inc., and Frontier
Exploration Company, a company with limited liability incorporated under the
laws of the State of Utah, United States of America, having its registered
office at 3006 High-Land Drive, Suite 206, Salt Lake City, Utah 04106, United
States of America and registered with the Secretary of State, Utah, United
States of America under number 1023353-0142.

     

     “FX Producing Company, Inc.”
means a corporation established and organised under the laws of Nevada with its
registered office 311 South Division Street, Carson City, Nevada 89703 and
having company number C4628-1994.

     

    
      
        
          
            	
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     “GAAP/IFRS” means in relation
only to the Borrower, the Guarantors or any member of the Group that is not
incorporated in the UK, generally accepted accounting principles in that
person’s jurisdiction of incorporation, or, in each case, if IFRS has been
implemented by the Group or the relevant member thereof, IFRS.

     

     “Governmental Authority” means
the government of any country, or of any political subdivision thereof, whether
state, regional or local, and any agency, authority, branch, department,
regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government or any subdivision thereof (including any
supra-national bodies), and all officials, agents and representatives of each of
the foregoing.

     

    “Guarantors” means the Original
Guarantors and each Additional Guarantor.

     

     “Gross Expenditure” means, in
relation to any period and any Obligor, without double counting:

     

    
      	
              (a)  

            	
              to
      the extent that the same is payable in that period by that Obligor in
      respect of any Borrowing Base
Asset:

            

    

     

    
      	
              (i)  

            	
              all
      cash calls by the operator of that Borrowing Base Asset;
    and

            

    

     

    
      	
              (ii)  

            	
              to
      the extent not covered by paragraph (i)
above:

            

    

     

    
      	
              (A)  

            	
              all
      costs of producing, lifting, transporting, storing, processing and selling
      any Petroleum derived from that Borrowing Base
  Asset;

            

    

     

    
      	
              (B)  

            	
              all
      costs of reinstating any damaged facilities relating to that Borrowing
      Base Asset;

            

    

     

    
      	
              (C)  

            	
              all
      costs of satisfying any liability in respect of seepage, pollution and
      well control;

            

    

     

    
      	
              (D)  

            	
              all
      insurance premiums and all the fees, costs and expenses of insurance
      brokers;

            

    

     

    
      	
              (E)  

            	
              all
      exploration and appraisal expenditure on that Borrowing Base
      Asset;

            

    

     

    
      	
              (F)  

            	
              all
      costs of abandonment and any payments to make provision for abandonment
      costs in accordance with all relevant Field Documents relating to the
      whole or any part of that Borrowing Base Asset or any physical assets
      associated with it; and

            

    

     

    
      	
              (G)  

            	
              any
      royalties under any Petroleum production licence or other payments
      required by Applicable Law to be made to any Governmental Authority in
      Poland;

            

    

     

    
      	
              (b)  

            	
              (if
      that Obligor holds any interests in any Borrowing Base Assets) any Taxes
      payable by that Obligor in that
period;

            

    

     

    
      
        
          
            	
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              (c)  

            	
              any
      general and administrative expenditure not falling within paragraph (a)
      above which is payable by that Obligor in that period but only to the
      extent attributable to any Borrowing Base
Asset;

            

    

     

    
      	
              (d)  

            	
              any
      other expenses and payments not falling within the preceding paragraphs of
      this definition which are payable by that Obligor in that period in
      respect of any Borrowing Base Asset (including costs related to any
      hedging arrangements in respect of any Borrowing Base Asset);
      and

            

    

     

    
      	
              (e)  

            	
              any
      other expense or payment not falling in the preceding paragraphs of this
      definition which the Borrower elects (with the approval of the Majority
      Lenders) to treat as “Gross
Expenditure”.

            

    

     

     “Gross Income” means, in
relation to any period and any Obligor, without double counting:

     

    
      	
              (a)  

            	
              to
      the extent that the same is payable in that period to that Obligor in
      respect of any Borrowing Base
Asset:

            

    

     

    
      	
              (i)  

            	
              the
      gross proceeds (without deductions whatsoever) of any disposal of any
      Petroleum derived from that Borrowing Base Asset paid or payable to that
      Obligor in that period;

            

    

     

    
      	
              (ii)  

            	
              any
      gross proceeds (without any deductions whatsoever) payable to that Obligor
      in respect of the use or reservation of capacity of any pipeline forming
      part of, or relating to, that Borrowing Base
  Asset;

            

    

     

    
      	
              (iii)  

            	
              any
      other amounts paid or payable to that Obligor in that period in respect of
      that Borrowing Base Asset (including subject to Clause 6.3 (Key Principles) any
      proceeds of insurance or income from hedging arrangements relating to any
      Borrowing Base Asset); and

            

    

     

    
      	
              (b)  

            	
              (if
      that Obligor holds any interests in any Borrowing Base Assets) any refunds
      of Taxes payable to that Obligor in that
period;

            

    

     

    but
excluding:

     

    
      	
              (i)  

            	
              any
      amount paid or payable by way of loan or contribution to the equity
      capital of that Obligor in that
period;

            

    

     

    
      	
              (ii)  

            	
              any
      amount paid or payable to that Obligor by another member of the Group;
      and

            

    

     

    
      	
              (iii)  

            	
              any
      amount paid or payable to that Obligor in that period which does not
      relate to a Borrowing Base Asset (other than any amount referred to in
      paragraph (b) above).

            

    

     

    
      
        
          
            	
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     “Group” means, other than for
the purpose specified in each of Clause 20.1(c) (Representations) and Clause
22(b) (General
Undertakings), the Parent and its Subsidiaries for the time being, in
each case as a separate legal entity and not as consolidated with any other
member of the Group.

     

     “Group Structure Chart” means
the group structure chart annexed to this Agreement at Schedule 14 (Group Structure
Chart).

     

    “Hedging Agreements” means any
agreement or instrument relating to the hedging of commodity price exposure,
interest rate exposure or currency exposure (including a forward, swap or
option) or any other derivative or risk hedging instrument approved under Clause
5 (Hedging Banks: rights and
obligations) of the Intercreditor Deed.

     

    “Hedging Bank” has the meaning
given to it in the Intercreditor Deed.

     

     “Hedging Policy” means a
hedging strategy document, in a form annexed to this Agreement as Schedule 15
(Hedging Policy)
approved by the Majority Lenders which sets out, among other things, the hedging
transactions to be undertaken by the Obligors in the relevant period covered by
such document.

     

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

     

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

     

    “ISDA Agreement” means the 1992
ISDA Master Agreement (Multicurrency - Cross Border), as supplemented and
amended by a schedule.

     

     “Independent Engineer” means
RPS Group Plc or such other reputable independent petroleum engineer or other
expert approved by the Technical Bank (in consultation with the
Borrower).

     

     “Information Memorandum” means
the document in the form approved by the Borrower concerning the Group which, at
the Borrower’s request and on its behalf, was prepared in relation to this
transaction and distributed by The Royal Bank of Scotland plc to selected
financial institutions before the date of this Agreement.

     

     “Initial Approved Reserves” has
the meaning given in Clause 6.12 (Initial Approved
Reserves).

     

     “Initial Borrowing Base Assets”
means those assets specified in Schedule 4 (Initial Borrowing Base
Assets).

     

     “Initial Projection” means in
relation to the Initial Borrowing Base Assets, the relevant Projection described
in paragraph 7(n) of Part I of Schedule 2 (Conditions Precedent to Initial
Utilisation), which is delivered to the Agent pursuant to Clause 4.1
(Initial conditions
precedent).

     

    
      
        
          
            	
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     “Insolvency Officer” means any
liquidator, trustee in bankruptcy, judicial custodian or manager, compulsory
manager, receiver, administrative receiver, administrator or other similar
officer in each case, appointed in any jurisdiction, including a compulsory
manager appointed pursuant to Article 27 of the Polish law dated December 6,
1996 (as amended) on registered pledge and pledge register or pursuant to
Article 931 of the Polish Code of Civil Procedure.

     

     “Insurance Proceeds” means any
proceeds received by the Borrower under or pursuant to any Project Insurances
policy.

     

     “Intercreditor Deed” means the
intercreditor deed to be entered into pursuant to paragraph 2(a)(xi) of Part I
of Schedule 2 (Conditions
Precedent to Initial Utilisation).

     

     “Intercreditor Accession Deed”
has the meaning given to it in the Intercreditor Deed.

     

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

     

     “Interim Projection” means each
Projection that is adopted or due to be adopted on each Interim Recalculation
Date.

     

     “Interim Recalculation Date”
means any date nominated as such in any Designation Notice delivered pursuant to
Clause 6.1(b) (Adoption).

     

     “ITA” means the Income Tax Act
2007.

     

     “Joint Operating Agreement”
means any contract, agreement, joint venture or other arrangement entered into
by the Borrower and a third party regulating joint operations, physical
facilities and profits in relation to a Borrowing Base Asset.

     

    “KSK Fields” means each of the
Sroda Kromolice Field, Kromolice South Field and Środa Wielkopolska
Field (as described in Schedule 4 (Initial Borrowing Base
Assets)).

     

    “KSK First Production”
means:

     

    
      	
              (a)  

            	
              the
      KSK Fields and all related facilities have (without unremedied major or
      material malfunctions) demonstrated the ability to either produce, process
      and transport and make available for sale gas at an average aggregate
      gross production rate of 14 million standard cubic feet per day over a
      continuous 30 day period;

            

    

     

    
      	
              (b)  

            	
              the
      development and construction of all the facilities relating to the KSK
      fields have been completed in accordance with the development plan
      referred to in the latest Reserve Report in all material
      respects;

            

    

     

    
      	
              (c)  

            	
              the
      gas sales agreements for the KSK fields have been fully executed and the
      rights thereunder secured in favour of the Security Trustee on behalf of
      the Lenders in a manner in form and substance satisfactory to the Agent;
      and

            

    

     

    
      
        
          
            	
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              (d)  

            	
              the
      State Treasury of the Republic of Poland has consented to the transfer of
      a 49% interest in the mining usufruct rights for
      exploitation  to the Borrower for each of the KSK Fields and
      evidence of this consent and transfer has been provided to the Agent in
      form and substance satisfactory to the
Agent.

            

    

     

    “Legal Reservation” means any
qualifications as to matters of law set out in any legal opinion delivered under
paragraph 6 of Part I of Schedule 2 (Conditions Precedent to Initial
Utilisation).

     

     “Lender” means:

     

    
      	
              (a)  

            	
              any
      Original Lender; and

            

    

     

    
      	
              (b)  

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

            

    

     

    which in
each case has not ceased to be a Party in accordance with the terms of this
Agreement.

     

     “Lender’s Available Commitment” means a
Lender’s Commitment minus (subject as set out below):

     

    
      	
              (a)  

            	
              the
      amount of its participation in any outstanding Loans;
  and

            

    

     

    
      	
              (b)  

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

            

    

     

    For the
purposes of calculating a Lender’s Available Commitment in relation to any
proposed Utilisation, that Lender’s participation in any Loans that are due to
be repaid or prepaid on or before the proposed Utilisation Date shall not be
deducted from a Lender’s Commitment.

     

    “Letters of Release” means the
Dutch Letter of Release, the English Letter of Release and the Polish Letter of
Release.

     

     “LIBOR” means, in relation to
any Loan:

     

    
      	
              (a)  

            	
              the
      applicable Screen Rate; or

            

    

     

    
      	
              (b)  

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

            

    

     

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

     

     “LMA” means the Loan Market
Association.

     

    “Liquidation Account” has the
meaning given in the Account Bank Agreement.

     

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

     

     “Loan Life NPV” means, in
relation to any Calculation Period, the amount, in dollars, of the net present
value (as at the first day of that Calculation Period) of the aggregate of the
Projected Net Revenues (the “relevant
amount”)  for that Calculation Period and for each Calculation
Period occurring thereafter which ends on or before the Final Maturity Date
(being the discounted value of the relevant amount calculated, using the
Computer Model, by applying the relevant discount rate agreed or determined in
accordance with Clause 6 (Projections) to the relevant
amount).

     

     “Majority Lenders”
means:

     

    
      	
              (a)  

            	
              if
      there are no Loans then outstanding, a Lender or Lenders whose Commitments
      aggregate more than 662⁄3 per cent. of the Total Commitments (or, if the
      Total Commitments have been reduced to zero, aggregated more than 662⁄3 per
      cent. of the Total Commitments immediately prior to the reduction);
      or

            

    

     

    
      	
              (b)  

            	
              at
      any other time, a Lender or Lenders whose participations in the Loans then
      outstanding aggregate more than 662⁄3 per cent. of all the Loans then
      outstanding.

            

    

     

     “Mandate Letter” means the
letter dated 22 March 2010 between The Royal Bank of Scotland plc and the
Borrower.

     

     “Mandatory Cost” means the
percentage rate per annum calculated by the Agent in accordance with Schedule 6
(Mandatory Cost
formulae).

     

     “Margin” means:

     

    
      	
              (a)  

            	
              before
      30 June 2013, 4.00 per cent. per annum;
and

            

    

     

    
      	
              (b)  

            	
              thereafter,
      5.00 per cent. per annum.

            

    

     

     “Material Adverse Effect” means, in the reasonable
opinion of the Majority Lenders (save for the purposes of Clause 6.1(a)(ii)(A)
(Projections), in the
reasonable opinion of the Technical Bank,  if applicable), a material
adverse effect on:

     

    
      	
              (a)  

            	
              the
      financial condition of any Obligor;

            

    

     

    
      	
              (b)  

            	
              the
      ability of any Obligor to perform (i) its obligations under any Finance
      Document to which it is a party or (ii) its material obligations under any
      Transaction Document (other than a Finance Document) to which it is a
      party;

            

    

     

    
      	
              (c)  

            	
              the
      validity or enforceability of (i) any Finance Document (or any material
      provision thereof) or (ii) any Security purported to be created under any
      Security Document; or

            

    

     

    
      	
              (d)  

            	
              the
      rights and remedies of the Lenders under any Finance
    Document.

            

    

     

    
      
        
          
            	
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     “Mining Concession” means a
concession to search for, explore and/or exploit oil and gas issued by the
Applicable Polish Licensing Authority.

     

    “Mining Law” means the act of 4
February 1994 on Geological and Mining Law (Journal of Laws of the Republic of
Poland of 2005, No. 228, item 1947, as amended), as may be amended from time to
time, or any subsequent and/or superseding Polish legislative act applicable to
carrying out of mining operations in the Republic of Poland.

     

     “Mining Usufruct Agreement”
means an agreement pursuant to which the Borrower and/or other persons hold the
right of a mining usufruct.

     

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

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

            	
              if
      an Interest Period begins on the last Business Day of a calendar month,
      that Interest Period shall end on the last Business Day in the calendar
      month in which that Interest Period is to
end.

            

    

     

    The above
rules will only apply to the last Month of any period.

     

     “Monthly Cash Flow Projection”
means a report, in the Agreed Form, issued by the Parent at the end of a
quarter, which sets out, in respect of each month falling during the 12 month
period following the end of such quarter, the cash flow, debt and equity
position of the Group (on a consolidated basis) including a breakdown of all
planned, committed and uncommitted expenditure of the Group, forecast debt
service and estimated revenues.

     

     “New Borrowing Base Asset”
means any Petroleum Asset not listed in Schedule 4 (Initial Borrowing Base
Assets) and that has been designated as such in accordance with Clause 6
(Projections).

     

    “Non-Dutch Obligor” means each
Original Obligor which is not a Dutch Obligor.

     

     “Obligors” has the meaning
given to it in the Intercreditor Deed.

     

    “Onshore Proceeds Account” has
the meaning given in the Account Bank Agreement.

     

     “Original Financial Statements”
means:

     

    
      	
              (a)  

            	
              in
      relation to the Borrower, its audited financial statements for its
      financial year ended 31 December
2009;

            

    

     

    
      
        
          
            	
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              (b)  

            	
              in
      relation to the Parent:

            

    

     

    
      	
              (i)  

            	
              the
      audited consolidated financial statements of the Group for the financial
      year ending on 31 December 2009;

            

    

     

    
      	
              (ii)  

            	
              the
      unaudited consolidated financial statements of the Group for the quarter
      ending on 31 March 2010.

            

    

     

    
      	
              (c)  

            	
              in
      relation to FX Energy Netherlands Partnership C.V., the annual financial
      statements for its financial year ended 31 December 2008;
    and

            

    

     

    
      	
              (d)  

            	
              in
      relation to FX Energy Netherlands B.V., its annual financial statements
      for its financial year ended 31 December
2008.

            

    

     

    “Original Obligor” means the
Borrower or an Original Guarantor.

     

    “Parent” means FX Energy,
Inc.

     

    “Parent Operating Expenses”
means the reasonable general and administrative costs of the Parent reflected in
the then current Monthly Cash  Flow Projection and attributable to
activities on the Polish Fields.

     

     “Participating Member State”
means any member state of the European Union that adopts or has adopted the euro
as its lawful currency in accordance with legislation of the European Union
relating to Economic and Monetary Union.

     

     “Party” means a party to this
Agreement.

     

     “Permitted Expenditure”
means:

     

    
      	
              (a)  

            	
              any
      payment pursuant to Clause 3(a) and Clause 3(b) (Purpose);

            

    

     

    
      	
              (b)  

            	
              each
      item of Gross Expenditure reflected in the then current
      Projection;

            

    

     

    
      	
              (c)  

            	
              (without
      double counting) any item of expenditure in respect of Parent Operating
      Expenses reflected in the then current Monthly Cash Flow
      Projection;

            

    

     

    
      	
              (d)  

            	
              any
      item of expenditure (not being Gross Expenditure) reflected in the then
      current Monthly Cash Flow Projection and incurred by the Borrower in
      relation to any Polish Field which is not a  Borrowing Base
      Asset;

            

    

     

    
      	
              (e)  

            	
              any
      payment which the Borrower is required to make by law or as otherwise
      approved by the Agent into the Liquidation Account;
  and

            

    

     

    
      	
              (f)  

            	
              any
      other item of expenditure that the Majority Lenders and the Borrower agree
      to designate as “Permitted
Expenditure”.

            

    

     

     “Permitted Security”
means:

     

    
      	
              (a)  

            	
              any
      lien arising by operation of law and in the ordinary course of
      trading;

            

    

     

    
      
        
          
            	
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              (b)  

            	
              any
      Security constituted by any Finance
Document;

            

    

     

    
      	
              (c)  

            	
              any
      Security comprising a netting or set-off arrangement entered into by an
      Obligor or any other member of the Group in the ordinary course of its
      banking and trading arrangements for the purpose of netting debit and
      credit balances; and

            

    

     

    
      	
              (d)  

            	
              any
      Security granted to secure bids, tenders, contracts, leases, statutory
      obligations, surety and appeal bonds, and other obligations of a similar
      nature arising in the ordinary course of trading up to an aggregate limit
      of USD 1,000,000 and which Security may not continue for more than 24
      months following its date of
creation.

            

    

     

     “Petroleum” means any mineral,
oil or relative hydrocarbon (including condensate and natural gas liquids) and
natural gas existing in its natural condition in strata (but not including coal
or bituminous shale or other stratified deposits from which oil can be extracted
by destructive distillation).

     

     “Petroleum Asset” means (a) any
Petroleum field, pipeline transmission system or other Petroleum project, (b)
the facilities relating to such field, system or project and/or (c) the
interests in such field, system, project or facilities.

     

    “PGNiG” means Polskie Górnictwo
Naftowe i Gazownictwo SA.

     

     “Polish Environmental
Requirements” means Polish regulatory requirements for oil and gas
companies including in particular requirements under Environmental and Mining
Laws relating to licences and / or other aspects of the Borrowing Base Asset
approval and implementation processes.

     

     “Polish
Fields”  means any area covered by a licence issued by the
Applicable Polish Licensing Authority pursuant to the Mining Law in which the
Borrower has an interest in respect of the mining usufruct or the petroleum
accumulation in such area, including but not limited to any contractual
interest.

     

    “Polish Letter of Release”
means the Polish law governed letter of release dated on or about the date of
this Agreement, releasing  the security constituted by the Polish law
governed:

     

    
      	
              (a)  

            	
              Agreement
      for Pledges Over Shares in FX Energy Poland sp. z o.o dated 18 December
      2006;

            

    

     

    
      	
              (b)  

            	
              Agreement
      for Registered Pledge Over Enterprise dated 18 December
    2006;

            

    

     

    
      	
              (c)  

            	
              Agreement
      for Pledges Over Bank Accounts dated 18 December
  2006;

            

    

     

    
      	
              (d)  

            	
              Agreement
      for Pledges Over Mining Usufruct Rights dated 18 December
      2006;

            

    

     

    
      	
              (e)  

            	
              Agreement
      for Collateral Assignment of Rights Under Project Documents dated 18
      December 2006; and

            

    

     

    
      
        
          
            	
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              (f)  

            	
              Agreement
      for Pledge Over Receivables under Joint Operating Agreements dated 18
      December 2006.

            

    

     

     “Polish Financial Pledge over Bank Accounts”
means the agreement dated on or about the date of this Agreement between the
Borrower and the Security Trustee pledging all right, title and interest in
respect of specified bank accounts of the Borrower under the Certain Financial
Collateral Law (as defined therein).

     

     “Polish Financial Pledge over
Shares” means the agreement dated on or about the date of this Agreement
between FX Energy Netherlands B.V. and the Security Trustee and under the
Certain Financial Collateral Law (as defined therein) creating Security over the
shares of the Borrower.

     

     “Polish Registered Pledge over Bank Accounts”
means the agreement dated on or about the date of this Agreement between the
Borrower and the Security Trustee pledging all right, title and interest in
respect of specified bank accounts of the Borrower and registered under the
Registered Pledge Law (as defined therein).

     

     “Polish Registered Pledge over Moveable Assets”
means the agreement dated on or about the date of this Agreement between the
Borrower and the Security Trustee pledging all right, title and interest in the
moveable assets of the Borrower and registered under the Registered Pledge Law
(as defined therein).

     

    “Polish Registered Pledge over
Shares” means the agreement dated on or about the date of this Agreement
between FX Energy Netherlands B.V. and the Security Trustee and registered under
the Registered Pledge Law (as defined therein) creating Security over the shares
of the Borrower.

     

     “Polish Submission to
Execution” means a voluntary submission to enforcement in relation to the
Facility pursuant to Article 777 of the Polish Code of Civil Procedure to be
executed by the Borrower in favour of the Lenders.

     

     “Project Accounts” means the
Onshore Proceeds Accounts and the Liquidation Account.

     

     “Project Insurances” means all
insurances that the Borrower is required to maintain pursuant to Clause 22.12(a)
(Insurance).

     

     “Project Loans” means the
proceeds of Utilisations, drawings under any loan facilities or other Financial
Indebtedness incurred in connection with operating and developing the Polish
Fields.

     

     “Projected Net Revenues” means,
in relation to any period, an amount (which may be a negative or positive
figure) calculated by deducting “B” from “A” where:

     

    “A” is
the aggregate of the Gross Income of the Borrower projected to be received in
that period; and

     

    “B” is
the aggregate of the Gross Expenditure of the Borrower projected to be made in
that period.

     

    
      
        
          
            	
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     “Projection” means a
consolidated cashflow and debt service projection prepared or to be prepared
pursuant to this Agreement.

     

     “Probable Reserves” means, in
relation to any Petroleum Asset, those quantities of Petroleum which are as
likely as not to be recovered from that Petroleum Asset having regard to the
rules and regulations prescribed by the US Securities and Exchange
Commission.

     

    “Proved Reserves” means, in
relation to any Petroleum Asset, those quantities of Petroleum which geological
and engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and operating
conditions having regard to the rules and regulations prescribed by the US
Securities and Exchange Commission.

     

    “Proved and Probable Reserves”
means the Proved Reserves and the Probable Reserves.

     

     “Qualifying Lender” has the
meaning given to it in Clause 14 (Tax gross up and
indemnities).

     

     “Quotation Day” means, in
relation to any period for which an interest rate is to be determined, two
Business Days before the first day of that period unless market practice differs
in the Relevant Interbank Market, in which case the Quotation Day will be
determined by the Agent in accordance with market practice in the Relevant
Interbank Market (and if quotations would normally be given by leading banks in
the Relevant Interbank Market on more than one day, the Quotation Day will be
the last of those days).

     

     “Reasonable and Prudent
Operator” means a person acting in good faith, with the intention of
performing its contractual obligations and who, in so doing, and in the general
conduct of its undertaking, exercises that degree of skill, diligence, prudence
and foresight which would reasonably and ordinarily be exercised by a skilled
and experienced person complying with applicable laws and observing all
applicable standard industry practices and guidelines engaged in the same type
of undertaking in similar conditions and circumstances.

     

     “Recalculation Date” means any Scheduled
Recalculation Date or Interim Recalculation Date.

     

     “Receiver” means a receiver or
receiver and manager or administrative receiver of the whole or any part of the
Charged Property.

     

     “Reduction Date” means each
date specified in the first column (headed “Reduction Date”) of the table in
Schedule 3 (Reduced
Commitments).

     

     “Reference Banks” means the
principal London offices of The Royal Bank of Scotland plc, ING Bank N.V. and
KBC Bank NV or such other banks as may be appointed by the Agent in consultation
with the Borrower.

     

    
      
        
          
            	
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    “Refinancing Date” means the
date of payment or repayment in full of all amounts due under the Finance
Documents (as defined in the Existing Facility Agreement) such that no amounts
are outstanding thereunder.

     

     “Related Fund” in relation to a
fund (the “first fund”),
means a fund which is managed or advised by the same investment manager or
investment adviser as the first fund or, if it is managed by a different
investment manager or investment adviser, a fund whose investment manager or
investment adviser is an Affiliate of the investment manager or investment
adviser of the first fund.

     

     “Relevant Interbank Market”
means the London interbank market.

     

     “Relevant Jurisdiction”
means:

     

    
      	
              (a)  

            	
              the
      jurisdiction of incorporation or organisation of each member of the
      Group;

            

    

     

    
      	
              (b)  

            	
              the
      jurisdiction where any asset subject to or intended to be subject to the
      Transaction Security is situated;
and

            

    

     

    
      	
              (c)  

            	
              the
      jurisdiction where any member of the Group is conducting its
      business.

            

    

     

    “Relevant Obligor” means any Obligor (a)
that has granted Security under a Security Document over such of its assets as
specified by the Agent and (b) whose Holding Company(ies) have granted Security
over all of the shares in that Obligor to the Security Trustee.

     

     “Remaining Borrowing Base
Reserves” means, in relation to each Borrowing Base Asset and any date,
the quantities of Petroleum forecast in the then current Projection to be
produced by that Borrowing Base Asset in the period from that date up to (and
including) the Abandonment Date for such Borrowing Base Asset (which figure may
vary from Projection to Projection).

     

     “Repeating Representations”
means each of the representations set out in Clause 20 (Representations) other than
in Clause 20.7 (No proceedings
pending or threatened), paragraph (b) of Clause 20.11 (Security Matters), Clause
20.13 (Deduction of
Tax), Clause 20.16 (No
filing or stamp taxes), paragraph (a) of Clause 20.18 (Ownership) and Clause 20.30
(Offtake).

     

     “Representative” means any
delegate, agent, manager, administrator, nominee, attorney, trustee or
custodian.

     

     “Required Authorisation” means
each Authorisation required by an Obligor or any other member of the
Group:

     

    
      	
              (a)  

            	
              to
      enable it lawfully to enter into, exercise its rights and comply with its
      obligations in the Transaction Documents to which it is a
      party;

            

    

     

    
      	
              (b)  

            	
              to
      make the Transaction Documents to which it is a party admissible in
      evidence in its jurisdiction of incorporation;
  and/or

            

    

     

    
      
        
          
            	
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              (c)  

            	
              in
      connection with the ownership, development, construction, operation and/or
      exploitation of any Borrowing Base
Asset.

            

    

     

     “Reserves Report” means a
report prepared by the Independent Engineer containing such information and/or
evaluation(s) (relating to each Borrowing Base Asset or, as the case may be, any
other Petroleum Asset which the Borrower is seeking to have designated as a
Borrowing Base Asset) as the Technical Bank may reasonably require including
evaluation(s) of the recoverable reserves, production profiles, operational
expenditure, abandonments costs and/or capital expenditure of such Borrowing
Base Assets or, as the case may be, Petroleum Assets.

     

     “Reserve Tail Date” means the
Recalculation Date immediately following the date (reflected in the then current
Projection) on which the aggregate Remaining Borrowing Base Reserves for all
Borrowing Base Assets is forecast to fall below 25 per cent. of the Initial
Approved Reserves.

     

     “Rollover Loan” means one or
more Loans:

     

    
      	
              (a)  

            	
              made
      or to be made on the same day that a maturing Loan is due to be
      repaid;

            

    

     

    
      	
              (b)  

            	
              the
      aggregate amount of which is equal to or less than the amount of the
      maturing Loan; and

            

    

     

    
      	
              (c)  

            	
              made
      or to be made for the purpose of refinancing a maturing
    Loan.

            

    

     

     “Scheduled Projection” means
each Projection that is adopted or due to be adopted on a Scheduled
Recalculation Date.

     

     “Scheduled Recalculation Date”
means each 30 June and 31 December occurring on or before the Final Maturity
Date.

     

     “Screen Rate” means the British
Bankers’ Association Interest Settlement Rate for dollars for the relevant
period, displayed on the appropriate page of the Reuters screen.  If
the agreed page is replaced or service ceases to be available, the Agent may
specify another page or service displaying the appropriate rate after
consultation with the Borrower and the Lenders.

     

     “Secured Parties” has the
meaning given to it in the Intercreditor Deed.

     

     “Security” means a mortgage,
charge, pledge, lien or other security interest securing any obligation of any
person or any other agreement or arrangement having a similar
effect.

     

     “Security Documents” means each
of the documents specified in paragraph 2(a) (Transaction Documents) of
Part I 
‎of
Schedule 2 (Conditions
Precedent to Initial Utilisation), together with any other document
entered into by any Obligor creating or expressed to create any Security over
all or any part of its assets in respect of the obligations of any of the
Obligors under any of the Finance Documents.

     

     “Specified Time” means a time
determined in accordance with Schedule 16 (Timetables).

     

    
      
        
          
            	
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     “Subordinated Lender” means any
member of the Group that makes or proposes to make loans to the Borrower or any
other member of the Group under Subordinated Loan Agreements or equity
contributions and which loans or contributions are subject to the Intercreditor
Deed.

     

     “Subordinated Loan Agreements”
means any loan agreement (including, without limitation, those loan agreements
referred to in Schedule 11 (Existing Financial
Indebtedness) between a Subordinated Lender and (a) the Borrower or (b)
another Subordinated Lender and which are subject to the Intercreditor
Deed.

     

     “Subsidiary” means a subsidiary
undertaking within the meaning of section 1162 of the Companies Act 2006 which
for this purpose shall be treated as including any person the shares or
ownership interests in which are subject to Security and where the legal title
to the shares or ownership interests so secured are registered in the name of
the secured party or its nominee pursuant to such Security.

     

     “Tax” means any tax, levy,
impost, duty or other charge or withholding of a similar nature (including any
penalty or interest payable in connection with any failure to pay or any delay
in paying any of the same).

     

     “Technical Bank” means The
Royal Bank of Scotland plc.

     

     “Technical Assumption” means
any assumptions (other than an Economic Assumption), and the values ascribed to
such assumptions, upon which each Projection or draft Projection and, in each
case, the calculations and information therein are, or are to be,
based.

     

     “Total Commitments” means the
aggregate of each Lender’s Commitment from time to time, being USD 55,000,000 at
the date of this Agreement as may be reduced from time to time pursuant to
Clause 8.2 (Reduction).

     

     “Transaction Close” means the
date of satisfaction of all conditions precedent listed in Part I of Schedule 2
(Conditions Precedent to
Initial Utilisation).

     

     “Transaction Document” means
the Finance Documents and the Field Documents.

     

     “Transaction Security” means
the Security created or expressed to be created in favour of the Security
Trustee pursuant to the Security Documents.

     

     “Transfer Certificate” means a
certificate substantially in the form set out in Schedule 7 (Form of Transfer Certificate)
or any other form agreed between the Agent and the Borrower.

     

     “Transfer Date” means, in
relation to an assignment or a transfer, the later of:

     

    
      	
              (a)  

            	
              the
      proposed Transfer Date specified in the relevant Assignment Agreement or
      Transfer Certificate; and

            

    

     

    
      	
              (b)  

            	
              the
      date on which the Agent executes the relevant Assignment Agreement or
      Transfer Certificate.

            

    

     

    
      
        
          
            	
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     “Unitisation” means any
unitisation of, or affecting, any Borrowing Base Asset, or any adjustment of the
relevant member of the Group’s interests in any Borrowing Base Asset and/or any
Petroleum derived therefrom as a result of the pooling of production of that
Borrowing Base Asset with that of another field or otherwise.

     

     “Unpaid Sum” means any sum due
and payable but unpaid by an Obligor under the Finance Documents.

     

     “Utilisation” means a
utilisation of the Facility.

     

     “Utilisation Date” means the
date of a Utilisation, being the date on which the relevant Loan is to be
made.

     

     “Utilisation Request” means a
notice substantially in the form set out in Schedule 5 (Utilisation Request).

     

     “VAT” means value added tax as
provided for in the Value Added Tax Act 1994 and any other tax of a similar
nature.

     

    
      	
              1.2  

            	
              Construction

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (i)  

            	
              the
      “Agent”, the
      “Mandated Lead
      Arranger”, the “Security Trustee”, the
      “Technical Bank”
      any “Finance
      Party”, any “Secured Party”, any
      “Lender”, any
      “Obligor” or any
      “Party” shall be
      construed so as to include its successors in title, permitted assigns and
      permitted transferees and, in the case of the Security Trustee, any person
      for the time being appointed as Security Trustee or Security Trustees in
      accordance with this Agreement;

            

    

     

    
      	
              (ii)  

            	
              “assets” includes present
      and future properties, revenues and rights of every
      description;

            

    

     

    
      	
              (iii)  

            	
              a
      “Finance Document”
      or any other agreement or instrument is a reference to that Finance
      Document or other agreement or instrument as amended, novated,
      supplemented, extended, replaced or
restated;

            

    

     

    
      	
              (iv)  

            	
              “indebtedness” includes
      any obligation (whether incurred as principal or as surety) for the
      payment or repayment of money, whether present or future, actual or
      contingent;

            

    

     

    
      	
              (v)  

            	
              a
      “person” includes
      any individual, firm, company, corporation, government, state or agency of
      a state or any association, trust, joint venture, consortium or
      partnership (whether or not having separate legal
      personality);

            

    

     

    
      
        
          
            	
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              (vi)  

            	
              a
      “regulation”
      includes any regulation, rule, official directive, request or guideline
      (whether or not having the force of law) of any governmental,
      intergovernmental or supranational body, agency, department or of any
      regulatory, self-regulatory or other authority or
      organisation;

            

    

     

    
      	
              (vii)  

            	
              a
      “quarter” means
      each period of three months commencing on 1 January of each
      year;

            

    

     

    
      	
              (viii)  

            	
              a
      reference to “includes” means
      ‘includes without limitation’ and ‘includes’ and ‘including’ shall be
      construed accordingly;

            

    

     

    
      	
              (ix)  

            	
              a
      provision of law is a reference to that provision as amended or
      re-enacted; and

            

    

     

    
      	
              (x)  

            	
              a
      time of day is a reference to London
time.

            

    

     

    
      	
              (b)  

            	
              Section,
      Clause and Schedule headings are for ease of reference
    only.

            

    

     

    
      	
              (c)  

            	
              Unless
      a contrary indication appears, a term used in any other Finance Document
      or in any notice given under or in connection with any Finance Document
      has the same meaning in that Finance Document or notice as in this
      Agreement.

            

    

     

    
      	
              (d)  

            	
              A
      Default (other than an Event of Default) is “continuing” if it has
      not been remedied or waived and an Event of Default is “continuing” if it has
      not been waived.

            

    

     

    
      	
              1.3  

            	
              Dutch Terms

            

    

     

    In this
Agreement, where it relates to a Dutch entity, a reference to:

     

    
      	
              (a)  

            	
              a
      necessary action to authorise, where applicable, includes without
      limitation:

            

    

     

    
      	
              (i)  

            	
              any
      action required to comply with the Dutch Works Council Act (Wet op de
      ondernemingsraden); and

            

    

     

    
      	
              (ii)  

            	
              obtaining
      unconditional positive advice (advies) from each
      competent works council;

            

    

     

    
      	
              (b)  

            	
              a
      winding-up, administration or dissolution includes a Dutch entity
      being:

            

    

     

    
      	
              (i)  

            	
              declared
      bankrupt (failliet
      verklaard);

            

    

     

    
      	
              (ii)  

            	
              dissolved
      (ontbonden);

            

    

     

    
      	
              (c)  

            	
              a
      moratorium includes surséance van betaling
      and granted a moratorium includes surséance
      verleend;

            

    

     

    
      	
              (d)  

            	
              a
      trustee in bankruptcy includes a curator;

            

    

     

    
      
        
          
            	
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              (e)  

            	
              an
      administrator includes a bewindvoerder;

            

    

     

    
      	
              (f)  

            	
              a
      receiver or an administrative receiver does not include a curator or bewindvoerder;
      and

            

    

     

    
      	
              (g)  

            	
              an
      attachment includes a beslag.

            

    

     

    
      	
              1.4  

            	
              Currency
      Symbols and Definitions

            

    

     

    
      	
              (a)  

            	
              “USD”, “$” and “dollars” denote the
      lawful currency of the United States of
America.

            

    

     

    
      	
              (b)  

            	
              “zloty” denotes the
      lawful currency of the Republic of
Poland.

            

    

     

    
      	
              1.5  

            	
              Third
      party rights

            

    

     

    
      	
              (a)  

            	
              Unless
      expressly provided to the contrary in a Finance Document, a person who is
      not a Party has no right under the Contracts (Rights of Third Parties) Act
      1999 (the “Third Parties
      Act”) to enforce or to enjoy the benefit of any term of this
      Agreement.

            

    

     

    
      	
              (b)  

            	
              A
      Hedging Bank may enforce the terms of Clause 19 (Guarantee and
      indemnity) in accordance with Clause 38 (Governing law) and
      Clause 39 (Enforcement) and the
      provisions of the Third Parties
Act.

            

    

     

    
      	
              (c)  

            	
              Notwithstanding
      any term of any Finance Document, the consent of any person who is not a
      Party is not required to rescind or vary this Agreement at any
      time.

            

    

     

    
      
        
          
            	
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    SECTION
2
THE
FACILITY

     

    
      	
              2.  

            	
              THE
      FACILITY

            

    

     

    
      	
              2.1  

            	
              The
      Facility

            

    

     

    Subject
to the terms of this Agreement, the Lenders make available to the Borrower a
dollar revolving loan facility in an aggregate amount equal to the Total
Commitments.

     

    
      	
              2.2  

            	
              Finance
      Parties’ rights and obligations

            

    

     

    
      	
              (a)  

            	
              The
      obligations of each Finance Party under the Finance Documents are
      several.  Failure by a Finance Party to perform its obligations
      under the Finance Documents does not affect the obligations of any other
      Party under the Finance Documents.  No Finance Party is
      responsible for the obligations of any other Finance Party under the
      Finance Documents.

            

    

     

    
      	
              (b)  

            	
              The
      rights of each Finance Party under or in connection with the Finance
      Documents are separate and independent rights and any debt arising under
      the Finance Documents to a Finance Party from an Obligor shall be a
      separate and independent debt.

            

    

     

    
      	
              (c)  

            	
              A
      Finance Party may, except as otherwise stated in the Finance Documents,
      separately enforce its rights under the Finance
  Documents.

            

    

     

    
      	
              3.  

            	
              PURPOSE

            

    

     

    
      	
              (a)  

            	
              The
      Borrower shall make the first drawdown under the Facility within 5
      Business Days of Transaction Close, and shall apply such drawdown towards
      (i)  repayment in full of all amounts outstanding under and
      pursuant to the Existing Facility Agreement and (ii) payment of all fees
      and transaction costs referred to in paragraph 7(i) of Part I of Schedule
      2 (Conditions Precedent
      to Initial Utilisation), (and the Borrower shall request the Agent
      to apply the funds from such drawdown directly towards such purposes at
      the time of drawdown).

            

    

     

    
      	
              (b)  

            	
              Subject
      to Clause 3(a), the Borrower shall apply all amounts borrowed by it under
      the Facility:

            

    

     

    
      	
              (i)  

            	
               in
      payment of any fees or transaction costs related to the Facility;
      and

            

    

     

    
      	
              (ii)  

            	
              for
      its general corporate purposes in accordance with Clause 7.4 (Withdrawals from the Onshore
      Proceeds Account).

            

    

     

    
      	
              3.2  

            	
              Monitoring

            

    

     

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

     

    

      
        
          
            
              	
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              4.  

            	
              CONDITIONS
      OF UTILISATION

            

    

     

    
      	
              4.1  

            	
              Initial
      conditions precedent

            

    

     

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

     

    
      	
              4.2  

            	
              Further
      conditions precedent

            

    

     

    The
Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on
the date of the Utilisation Request and on the proposed Utilisation
Date:

     

    
      	
              (a)  

            	
              in
      the case of a Rollover Loan, no Event of Default is continuing or would
      result from the proposed Loan and, in the case of any other Loan, no
      Default is continuing or would result from the proposed
    Loan;

            

    

     

    
      	
              (b)  

            	
              the
      Repeating Representations to be made by each Obligor are true in all
      material respects;

            

    

     

    
      	
              (c)  

            	
              other
      than in the case of a Rollover Loan, any Projection which is due to be
      adopted by a Recalculation Date has been adopted in accordance with Clause
      6 (Projections)
      by such Recalculation Date unless such Projection has not been adopted
      because:

            

    

     

    
      	
              (i)  

            	
              of
      any failure on the part of any Finance Party to perform its obligations
      under this Agreement; or

            

    

     

    
      	
              (ii)  

            	
              the
      Majority Lenders (acting reasonably) are of the opinion that if such a
      Projection were to be adopted, the applicable Borrowing Base Amount that
      would be generated by such a Projection would exceed the aggregate amount
      of (1) all the outstanding Utilisations and (2) all the Utilisations
      proposed to be made on the proposed Utilisation Date;
  and

            

    

     

    
      	
              (d)  

            	
              the
      aggregate of:

            

    

     

    
      	
              (i)  

            	
              the
      amount of the Utilisation proposed to be made on the proposed Utilisation
      Date; and

            

    

     

    
      	
              (ii)  

            	
              the
      aggregate amount of all outstanding Utilisations on the proposed
      Utilisation Date less the aggregate amount of all outstanding Utilisations
      due to be repaid or prepaid on the proposed Utilisation
    Date,

            

    

     

    
      
        
          
            	
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    does not
exceed the least of (1) the Available Facility applicable on the proposed
Utilisation Date, (2) the Borrowing Base Amount applicable on the proposed
Utilisation Date and (3) if the proposed Utilisation Date occurs prior to KSK
First Production having been achieved (to the Majority Lenders’ satisfaction),
$40,000,000.

     

    
      	
              4.3  

            	
              Maximum
      number of Loans

            

    

     

    The
Borrower may not deliver a Utilisation Request if as a result of the proposed
Utilisation six (6) or more Loans would be outstanding.

     

    
      
        
          
            	
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    SECTION
3

     

    UTILISATION

     

    
      	
              5.  

            	
              UTILISATION
      - LOANS

            

    

     

    
      	
              5.1  

            	
              Delivery
      of a Utilisation Request

            

    

     

    The
Borrower may utilise the Facility by delivery to the Agent of a duly completed
Utilisation Request not later than the Specified Time.

     

    
      	
              5.2  

            	
              Completion
      of a Utilisation Request

            

    

     

    
      	
              (a)  

            	
              Each
      Utilisation Request is irrevocable and will not be regarded as having been
      duly completed unless:

            

    

     

    
      	
              (i)  

            	
              in
      respect of the first Utilisation Request, the proposed Loan is sufficient
      to repay in full all amounts outstanding under and pursuant to the
      Existing Facility Agreement and all fees and transaction costs referred to
      in paragraph 7(i) of Part I of Schedule 2 (Conditions Precedent to
      Initial Utilisation);

            

    

     

    
      	
              (ii)  

            	
              the
      proposed Utilisation Date is a Business Day within the Availability
      Period;

            

    

     

    
      	
              (iii)  

            	
              the
      currency and amount of the Utilisation comply with Clause 5.3 (Currency and
      amount);

            

    

     

    
      	
              (iv)  

            	
              the
      proposed Interest Period complies with Clause 11 (Interest Periods);
      and

            

    

     

    
      	
              (v)  

            	
              it
      has been duly signed by an authorised signatory of the
      Borrower.

            

    

     

    
      	
              (b)  

            	
              Only
      one Loan may be requested in each Utilisation
  Request.

            

    

     

    
      	
              5.3  

            	
              Currency
      and amount

            

    

     

    
      	
              (a)  

            	
              The
      currency specified in a Utilisation Request must be
    dollars.

            

    

     

    
      	
              (b)  

            	
              The
      proposed Loan must not exceed the maximum amount of the Facility that may
      be utilised for such Loan under Clause 4.2 (Further conditions
      precedent) and, except for an initial Loan equal to the total
      amount of fees and expenses associated with the Facility, the amount of
      the proposed Loan must be an amount which is a minimum of USD 1,000,000
      and an integral multiple of USD 1,000,000 or, if less, that maximum
      amount.

            

    

     

    
      
        
          
            	
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              5.4  

            	
              Lenders’
      participation

            

    

     

    
      	
              (a)  

            	
              If
      the conditions set out in this Agreement have been met, each Lender shall
      make its participation in each Loan available by the Utilisation Date
      through its Facility Office.

            

    

     

    
      	
              (b)  

            	
              The
      amount of each Lender’s participation in each Loan will be equal to the
      proportion borne by that Lender’s Available Commitment to the Available
      Facility immediately prior to making the
Loan.

            

    

     

    
      	
              (c)  

            	
              The
      Agent shall notify each Lender of the amount of each Loan and the amount
      of its participation in that Loan, in each case by the Specified
      Time.

            

    

     

    
      	
              5.5  

            	
              Cancellation
      of Commitment

            

    

     

    The
Commitments which, at that time, are unutilised shall be immediately cancelled
at the end of the Availability Period.

     

    
      
        
          
            	
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    SECTION
4

     

    PROJECTIONS

     

    
      	
              6.  

            	
              PROJECTIONS

            

    

     

    
      	
              6.1  

            	
              Adoption

            

    

     

    
      	
              (a)  

            	
              Until
      the adoption of the first new Projection in accordance with this Clause 6
      (Projections),
      the Initial Projection shall be the current Projection for the purposes of
      this Agreement.  A new Projection shall be prepared in
      accordance with this Clause 6 (Projections) and
      adopted as of:

            

    

     

    
      	
              (i)  

            	
              each
      Scheduled Recalculation Date; and

            

    

     

    
      	
              (ii)  

            	
              each
      Interim Recalculation Date if the Technical Bank or the Agent (acting on
      the instructions of the Majority Lenders) so requires at any
      time:

            

    

     

    
      	
              (A)  

            	
              following
      the occurrence of any event or circumstance which, in the reasonable
      opinion of the Technical Bank or the Majority Lenders, as applicable, has
      or is likely to have, a Material Adverse
Effect;

            

    

     

    
      	
              (B)  

            	
              where
      in reasonable opinion of the Technical Bank or the Majority Lenders, as
      applicable, if a new Projection were to be adopted, it would or is likely
      to:

            

    

     

    
      	
              (1)  

            	
              generate
      a Borrowing Base Amount (relating to the Calculation Period in which such
      new Projection is expected to be adopted) which is less than the aggregate
      amount of the outstanding Utilisations;
or

            

    

     

    
      	
              (2)  

            	
              demonstrate
      that the Obligors will not be able to meet their liabilities as they fall
      due or that the Facility will not be repaid by the Final Maturity
      Date;

            

    

     

    
      	
              (C)  

            	
              following
      any Unitisation; or

            

    

     

    
      	
              (D)  

            	
              following
      any change in the operator of any Borrowing Base
  Asset.

            

    

     

    
      	
              (iii)  

            	
              following
      any request pursuant to Clause 6.5 (Asset base) by the
      Borrower:

            

    

     

    
      	
              (A)  

            	
              for
      any Petroleum Asset to be designated a Borrowing Base Asset;
      or

            

    

     

    
      	
              (B)  

            	
              for
      any Borrowing Base Asset to cease to be designated a Borrowing Base
      Asset.

            

    

     

    
      
        
          
            	
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              (b)  

            	
              Promptly
      following any request for a new
Projection:

            

    

     

    
      	
              (i)  

            	
              pursuant
      to Clause 6.1(a)(ii) the Technical Bank shall specify and notify the
      Borrower of the date as of which such Projection is to be prepared and
      adopted; or

            

    

     

    
      	
              (ii)  

            	
              pursuant
      to Clause 6.1(a)(iii) the Borrower shall specify and notify the Technical
      Bank of the date as of which any Projection is to be prepared and
      adopted,

            

    

     

    both such
notices being a “Designation
Notice”.

     

    
      	
              6.2  

            	
              Content

            

    

     

    
      	
              (a)  

            	
              Each
      Projection and draft Projection prepared pursuant to this Clause 6 (Projections)
      must:

            

    

     

    
      	
              (i)  

            	
              be
      prepared using the Computer Model;

            

    

     

    
      	
              (ii)  

            	
              be
      in a form similar to the Initial Projection (or such other form as the
      Agent acting on the instructions of the Majority Lenders may approve) and
      include the same type of information (and in the same level of detail) as
      that included in the Initial
Projection;

            

    

     

    
      	
              (iii)  

            	
              be
      prepared on the basis of the Assumptions that are proposed, approved,
      agreed and/or determined in accordance with this Clause 6 (Projections);

            

    

     

    
      	
              (iv)  

            	
              without
      prejudice to paragraph (a)(ii) of Clause 6.2,
  include:

            

    

     

    
      	
              (A)  

            	
              details
      of all the Assumptions on which it is
based;

            

    

     

    
      	
              (B)  

            	
              calculations
      of:

            

    

     

    
      	
              (1)  

            	
              the
      Projected Net Revenues for each Calculation Period ending on or before the
      Calculation End Date;

            

    

     

    
      	
              (2)  

            	
              the
      Field Life NPV and the Loan Life NPV relating to each Calculation Period
      ending on or before the Calculation End Date;
  and

            

    

     

    
      	
              (3)  

            	
              the
      Borrowing Base Amount for each Calculation Period commencing on or before
      the Final Maturity Date.

            

    

     

    
      
        
          
            	
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              (b)  

            	
              The
      first Calculation Period shown in each Projection and draft Projection
      prepared pursuant to this Clause 6 (Projections) shall
      be:

            

    

     

    
      	
              (i)  

            	
              in
      the case of any Scheduled Projection, the Calculation Period that
      commences on the day after the Scheduled Recalculation Date;
      and

            

    

     

    
      	
              (ii)  

            	
              in
      the case of any Interim Projection, the Calculation Period that commences
      on the day after the Interim Recalculation Date specified in the
      Designation Notice or such other Calculation Period as may be specified by
      the Agent.

            

    

     

    
      	
              6.3  

            	
              Key
      principles

            

    

     

    In (a)
proposing, agreeing and/or determining Assumptions, (b) preparing and/or
approving any Projection or draft Projection or (c) otherwise carrying out their
obligations, and exercising their rights, under this Clause 6 (Projections), the Parties
shall have regard to and comply with the following principles:

     

    
      	
              (i)  

            	
              Each Projection shall,
      subject to Clause 6.3(ix), be based
on:

            

    

     

    
      	
              (A)  

            	
              where
      the Technical Bank is satisfied that a Borrowing Base Asset has
      demonstrated a history of production at a satisfactory level for a period
      of at least six (6) continuous months, the Proved and Probable Reserves of
      such Borrowing Base Asset; and

            

    

     

    
      	
              (B)  

            	
              the
      Proved Reserves of any other Borrowing Base Asset;
  or

            

    

     

    
      	
              (C)  

            	
              such
      other reserves basis as may be agreed between the Technical Bank and the
      Borrower.

            

    

     

    
      	
              (ii)  

            	
              Each
      Projection must disregard any income or expenditure of any Obligor that is
      not Gross Income or Gross
Expenditure.

            

    

     

    
      	
              (iii)  

            	
              Each
      Projection must disregard any VAT or similar Tax which is payable in
      respect of any Gross Income or Gross Expenditure except to the extent that
      such VAT or similar Tax will be payable by any Obligor and is not
      effectively recoverable by it.

            

    

     

    
      	
              (iv)  

            	
              All
      figures for Taxes included in any Projection must be based on tax
      legislation in force on the relevant Recalculation Date on which that
      Projection is due to be adopted and on any official announcements or
      publications in force as at such date stating that such legislation is to
      be altered, supplemented or replaced in whole or in
  part.

            

    

     

    
      	
              (v)  

            	
              For
      the purposes of determining the opening cash balance(s) and the closing
      cash balance(s) for each Calculation Period shown in any Projection, all
      amounts standing to the credit of accounts that are not Onshore Proceeds
      Accounts shall be disregarded.

            

    

     

    
      
        
          
            	
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              (vi)  

            	
              The
      Technical Assumptions to be used for any Projection relating to any
      Borrowing Base Asset shall be based
upon:

            

    

     

    
      	
              (A)  

            	
              the
      Reserves Report and Borrower Update that has most recently been delivered
      to the Agent under this Agreement, in the form and to the extent such
      Technical Assumptions are  recommended by the Technical Bank;
      or

            

    

     

    
      	
              (B)  

            	
              if
      the Technical Bank and the Borrower agree, information generated by the
      Borrower and supported by evidence in all respects satisfactory to the
      Technical Bank.

            

    

     

    
      	
              (vii)  

            	
              Each
      Projection must reflect the then current Budgets and all relevant
      circumstances (including Abandonment
  Liabilities).

            

    

     

    
      	
              (viii)  

            	
              Any
      proceeds of insurance paid or payable to any Obligor in respect of any
      Borrowing Base Asset shall only be included as an item of Gross Income to
      the extent that:

            

    

     

    
      	
              (A)  

            	
              the
      Borrower can demonstrate to the reasonable satisfaction of the Agent that
      such proceeds will be received by that Obligor when projected;
      and

            

    

     

    
      	
              (B)  

            	
              such
      proceeds are not paid or payable to that Obligor in respect of any third
      party liability.

            

    

     

    
      	
              (ix)  

            	
              If
      following any disposal referred to in Clause 22.16 (Disposals) the
      Borrowing Base Assets comprise only one Polish Field, projections shall
      henceforth, thereafter, be based on Proved Reserves of such Borrowing Base
      Asset.

            

    

     

    
      	
              6.4  

            	
              Preparatory
      Steps

            

    

     

    
      	
              (a)  

            	
              No
      later than 40 Business Days before each Recalculation Date or, in relation
      to any Interim Projection, such later date as the Agent may
      specify:

            

    

     

    
      	
              (i)  

            	
              the
      Agent shall submit to the Borrower its proposals for the Economic
      Assumptions; and

            

    

     

    
      	
              (ii)  

            	
              the
      Borrower shall submit to the Technical Bank its proposals for the
      Technical Assumptions,

            

    

     

    to be
used, in each case, for the Projection due to be adopted on such Recalculation
Date.

     

    
      	
              (b)  

            	
              The
      Borrower and the Technical Bank shall seek to agree on the Assumptions to
      be used for each Projection based on the proposals submitted in accordance
      with Clause 6.4(a) by (i) the date falling 30 Business Days before the
      Recalculation Date on which that Projection is due to be adopted or (ii)
      in relation to any Interim Projection, such later date as the Agent may
      specify.

            

    

     

    
      
        
          
            	
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              6.5  

            	
              Asset
      base

            

    

     

    
      	
              (a)  

            	
              On
      or before the date falling 10 Business Days before the date on which the
      Technical Bank and the Borrower are due to submit their proposals in
      respect of the Assumptions to be used for any Projection pursuant to
      Clause 6.4 (Preparatory
      Steps), the Borrower may submit a request to the Agent for its
      consent for any Petroleum Asset to be designated a Borrowing Base Asset
      and/or for any existing Borrowing Base Asset to cease to be designated a
      Borrowing Base Asset.

            

    

     

    
      	
              (b)  

            	
              If
      the Borrower has made a request under Clause 6.5(a) for any Petroleum
      Asset to be designated a Borrowing Base Asset or a Projection is being
      prepared pursuant to Clause 6.1(a)(iii) (Adoption), the Borrower
      must deliver to the Agent (at the same time it makes the relevant request
      for such Petroleum Asset to be designated a Borrowing Base Asset) all such
      information, documentation and evidence as the Agent may consider
      necessary with respect to such Petroleum Asset including, without
      limitation, the matters specified in Clause 6.6(c) (i) to (iv) (Draft
      Projections).

            

    

     

    
      	
              6.6  

            	
              Draft
      Projections

            

    

     

    
      	
              (a)  

            	
              The
      Technical Bank shall prepare a draft Projection
  using:

            

    

     

    
      	
              (i)  

            	
              all
      the Assumptions that have been agreed between the Borrower and the
      Technical Bank pursuant to Clause 6.4 (Preparatory Steps);
      and

            

    

     

    
      	
              (ii)  

            	
              to
      the extent that the Borrower and the Technical Bank have not been able to
      reach agreement on any such Assumptions by the date referred to in Clause
      6.4 (Preparatory
      Steps) such Assumptions as determined by the Technical Bank (provided that, in the
      case of any Economic Assumptions, such Assumptions are (from the
      Borrower’s perspective) no less favourable than the corresponding economic
      assumptions which are then being used for the production of forecasts and
      projections on Equivalent
Financings).

            

    

     

    
      	
              (b)  

            	
              The
      Technical Bank will endeavour to ensure that each draft Projection is
      delivered to the Borrower and the Lenders no later than (i) 25 Business
      Days prior to the Recalculation Date on which such Projection is due to be
      adopted or (ii) in the case of any draft Interim Projection, such later
      date as the Agent may specify.

            

    

     

    
      
        
          
            	
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              (c)  

            	
              Each
      draft Projection must be accompanied by details of the conditions (if any)
      that the Agent (acting reasonably) considers necessary to be satisfied in
      order for (if the Borrower has made a request under Clause 6.5 (Asset base)), the
      relevant Petroleum Asset(s) to be designated as Borrowing Base Asset(s)
      and/or, as the case may be, the relevant Borrowing Base Asset(s) to cease
      to be so designated.  The conditions for the designation of a
      Petroleum Asset as a Borrowing Base Asset shall include as a minimum (i)
      the completion of satisfactory economic, legal and technical due diligence
      relating to that Petroleum Asset (ii) creation of Security relating
      thereto in favour of the Security Trustee (iii) the production of
      satisfactory evidence that all Authorisations required for the development
      and/or exploitation of that Petroleum Asset have been obtained and (iv) a
      satisfactory Reserves Report.

            

    

     

    
      	
              6.7  

            	
              Consideration
      by Lenders

            

    

     

    
      	
              (a)  

            	
              Each
      Lender may, within 10 Business Days of receiving the draft Projection and
      other information under Clause 6.6 (Draft Projections),
      inform (through the Agent) the Technical Bank whether or not it approves
      each of:

            

    

     

    
      	
              (i)  

            	
              the
      adoption of each of the Assumptions used in the preparation of that draft
      Projection;

            

    

     

    
      	
              (ii)  

            	
              any
      relevant Petroleum Asset being designated as a Borrowing Base Asset and
      the conditions relating thereto (if any);
and/or

            

    

     

    
      	
              (iii)  

            	
              a
      Borrowing Base Asset ceasing to be so designated and to the conditions
      relating thereto (if any).

            

    

     

    
      	
              (b)  

            	
              Any
      Lender that does not inform, through Agent, the Technical Bank to the
      contrary within 10 Business Days of receiving the draft Projection and
      other information under Clause 6.6 (Draft Projections),
      shall be deemed to have approved (as the case may
  be):

            

    

     

    
      	
              (i)  

            	
              the
      adoption of all of the Assumptions used in the preparation of that draft
      Projection;

            

    

     

    
      	
              (ii)  

            	
              any
      proposed Petroleum Asset being designated a Borrowing Base Asset and the
      conditions relating thereto (if any);
and/or

            

    

     

    
      	
              (iii)  

            	
              the
      relevant Borrowing Base Asset ceasing to be so designated and the
      conditions relating thereto (if
any).

            

    

     

    
      	
              (c)  

            	
              In
      any event, the Agent shall on the date falling 10 Business Days after the
      date on which each draft Projection is delivered under Clause 6.6 (Draft Projections) to
      the Lenders, inform the Borrower and the Lenders of whether Clause 6.8
      (Lenders approve)
      or Clause 6.9 (Lenders
      do not approve) applies with respect to such draft
      Projection.

            

    

     

    
      
        
          
            	
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              6.8  

            	
              Lenders
      approve

            

    

     

    If (as
the case may be):

     

    
      	
              (a)  

            	
              the
      Majority Lenders approve, or are deemed to have approved, the use of each
      of the Assumptions for the preparation of the relevant Projection;
      and/or

            

    

     

    
      	
              (b)  

            	
              the
      Majority Lenders approve, or are deemed to have approved, any Petroleum
      Asset being designated a Borrowing Base Asset and the conditions relating
      thereto; and/or

            

    

     

    
      	
              (c)  

            	
              the
      Majority Lenders approve, or are deemed to have approved, any existing
      Borrowing Base Asset ceasing to be so designated and the conditions
      relating thereto,

            

    

     

    then (as
the case may be):

     

    
      	
              (a)  

            	
              the
      draft Projection shall be adopted in accordance with Clause 6.10 (Adoption of Projection)
      as the current Projection for the purposes of this
    Agreement;

            

    

     

    
      	
              (b)  

            	
              the
      proposed new Petroleum Asset shall become a Borrowing Base Asset (upon
      satisfaction of the relevant conditions);
and/or

            

    

     

    
      	
              (c)  

            	
              the
      relevant existing Borrowing Base Asset shall cease to be a Borrowing Base
      Asset (upon satisfaction of such the relevant
  conditions).

            

    

     

    
      	
              6.9  

            	
              Lenders
      do not approve

            

    

     

    
      	
              (a)  

            	
              If
      Majority Lenders do not approve any of the Assumptions used in any draft
      Projection delivered to the Lenders for approval pursuant to Clause 6.6
      (Draft
      Projections) and Clause 6.7 (Consideration by
      Lenders), then (i) the Technical Bank shall consult with the
      Lenders and the Borrower as to the Assumptions that should be adopted
      instead of the Assumptions that the Lenders have not approved (the “rejected Assumptions”)
      and (ii) the Assumptions that are to be adopted instead of the rejected
      Assumptions shall be determined by the Majority
  Lenders.

            

    

     

    
      	
              (b)  

            	
              The
      Technical Bank shall, through the Agent, promptly upon the Majority
      Lenders determining the Assumptions to be used instead of the rejected
      Assumptions, notify the Borrower and the Lenders of the Assumptions so
      determined by the Majority Lenders.  The Technical Bank (in
      consultation with the Borrower) shall, promptly,
      following  dispatch of such
notice:

            

    

     

    
      	
              (i)  

            	
              revise
      the relevant draft Projection to reflect the Assumptions so determined by
      the Majority Lenders; and

            

    

     

    
      	
              (ii)  

            	
              deliver
      (through Agent) a copy of such revised draft Projection to the Borrower
      and the Lenders (and such revised draft Projection shall be adopted in
      accordance with Clause 6.10 (Adoption of Projection)
      as the current Projection for the purposes of this
    Agreement).

            

    

     

    
      
        
          
            	
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              (c)  

            	
              If
      the Majority Lenders (i) do not approve the designation of any Petroleum
      Asset as a Borrowing Base Asset or (ii) require conditions relating to the
      designation of any Petroleum Asset as a Borrowing Base Asset which are not
      acceptable to the Borrower, then the Technical Bank
  will:

            

    

     

    
      	
              (i)  

            	
              promptly
      (in consultation with the Borrower) prepare a revised draft Projection
      based on the Assumptions that have been agreed, approved or determined in
      accordance with the preceding provisions of this Clause 6 (Projections) that does
      not take account of the proposed Petroleum Asset as a Borrowing Base
      Asset; and

            

    

     

    
      	
              (ii)  

            	
              deliver
      (through Agent) a copy of such revised draft Projection to the Borrower,
      and the Lenders (and such revised draft Projection shall be adopted in
      accordance with Clause 6.10 (Adoption of Projection)
      as the current Projection for the purposes of this
    Agreement).

            

    

     

    
      	
              (d)  

            	
              If
      the Majority Lenders (i) do not approve of an existing Borrowing Base
      Asset ceasing to be so designated or (ii) require conditions relating to
      an existing Borrowing Base Asset ceasing to be so designated which are not
      acceptable to the Borrower, then the Technical Bank
  will:

            

    

     

    
      	
              (i)  

            	
              promptly
      (in consultation with the Borrower) prepare a revised draft Projection
      based on the Assumptions that have been agreed, approved or determined in
      accordance with the preceding provisions of this Clause 6 (Projections) that takes
      account of the relevant Borrowing Base Asset as a Borrowing Base Asset;
      and

            

    

     

    
      	
              (ii)  

            	
              deliver
      (through the Agent) a copy of such revised draft Projection to the
      Borrower and the Lenders (and such revised draft Projection shall be
      adopted in accordance with Clause 6.10 (Adoption of Projection)
      as the current Projection for the purposes of this
    Agreement).

            

    

     

    
      	
              6.10  

            	
              Adoption
      of Projection

            

    

     

    
      	
              (a)  

            	
              Each
      draft Projection prepared pursuant to the preceding provisions of this
      Clause 6 (Projections) will not
      be adopted as the current Projection for the purposes of this Agreement
      until the latest of:

            

    

     

    
      	
              (i)  

            	
              the
      relevant Recalculation Date on which the relevant Projection is due to be
      adopted;

            

    

     

    
      	
              (ii)  

            	
              (in
      the case of any Projection to be adopted in accordance with the
      designation of any Petroleum Asset as a Borrowing Base Asset or the
      ceasing of an existing Borrowing Base Asset to be so designated) the date
      on which any relevant conditions (together with any additional conditions
      that the Majority Lenders may require in accordance with the preceding
      provisions of this Clause 6 (Projections)) are
      satisfied; and

            

    

     

    
      
        
          
            	
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              (iii)  

            	
              (in
      the case of any revised draft Projection that has been prepared pursuant
      to Clause 6.9 (Lenders
      do not approve)) the date on which the Technical Bank delivers
      (through the Agent) the relevant revised draft Projection to the Borrower
      and the Lenders.

            

    

     

    
      	
              (b)  

            	
              Upon
      such adoption of the Projection, the Agent shall inform the Borrower
      accordingly and shall send a copy of that Projection to the
      Borrower.

            

    

     

    
      	
              6.11  

            	
              Computer
      Model

            

    

     

    The
Technical Bank may, with the prior consent of the Borrower (such consent not to
be unreasonably withheld or delayed), make amendments to the Computer Model from
time to time  to correct any deficiencies in such Computer Model
(including any conflict between the Computer Model and any Field Document) or
otherwise to reflect any changes in circumstance since the date of this
Agreement.

     

    
      	
              6.12  

            	
              Initial
      Approved Reserves

            

    

     

    
      	
              (a)  

            	
              Subject
      to the remaining provisions of this Clause 6.12 (Initial Approved
      Reserves), the “Initial Approved
      Reserves” shall be the aggregate quantities of Petroleum forecast
      in the Initial Projection to be produced from the Borrowing Base
      Assets.

            

    

     

    
      	
              (b)  

            	
              If
      any Projection has been adopted in accordance with this Clause 6 (Projections) either in
      connection with (i) the designation of any Petroleum Asset as a New
      Borrowing Base Asset or (ii) any Borrowing Base Asset ceasing to be so
      designated, the Technical Bank (having regard to that Projection and after
      consulting the Borrower pursuant to Clause 6.5 (Asset base)) shall
      adjust the Initial Approved Reserves to reflect (as the case may
      be):

            

    

     

    
      	
              (A)  

            	
              any
      increase in the aggregate quantities of Petroleum forecast to be produced
      by the Borrowing Base Assets by reason of a Petroleum Asset being
      designated as a New Borrowing Base
Asset;

            

    

     

    
      	
              (B)  

            	
              any
      decrease in the aggregate quantities of Petroleum forecast to be produced
      by the Borrowing Base Assets by reason of a Borrowing Base Asset ceasing
      to be so designated; or

            

    

     

    
      	
              (C)  

            	
              any
      other change approved by the Majority
Lenders.

            

    

     

    
      	
              (c)  

            	
              The
      Agent shall promptly after making any adjustment pursuant to Clause 6.12,
      notify the Borrower and the Lenders of the same and until the next
      adjustment is made pursuant Clause 6.12(b), the adjusted figure so
      notified by the Agent shall be the “Initial Approved
      Reserves” for the purposes of this
  Agreement.

            

    

     

    
      
        
          
            	
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    SECTION
5

    PROJECT
ACCOUNTS

     

    
      	
              7.  

            	
              PROJECT
      ACCOUNTS

            

    

     

    
      	
              7.1  

            	
              Project
      Accounts

            

    

     

    The
Borrower shall establish and maintain the Project Accounts with the Account
Bank, in accordance with the provisions of the Account Bank
Agreement.

     

    
      	
              7.2  

            	
              Other
      Project Accounts

            

    

     

    The
Borrower may not establish any other bank accounts without the prior written
approval of the Agent and then only if such other accounts are opened with the
Account Bank and secured in favour of the Security Trustee on substantially the
same terms as the Project Accounts are secured and appropriate amendments are
made to the provisions of this Section 5 in accordance with the provisions of
Clause 35 (Amendments and
Waivers).

     

    
      	
              7.3  

            	
              Onshore
      Proceeds Accounts

            

    

     

    The
Borrower shall procure that:

     

    
      	
              (a)  

            	
              all
      Gross Income;

            

    

     

    
      	
              (b)  

            	
              all
      Project Loans;

            

    

     

    
      	
              (c)  

            	
              any
      receipts under any Hedging
Agreements;

            

    

     

    
      	
              (d)  

            	
              all
      Insurance Proceeds;

            

    

     

    
      	
              (e)  

            	
              all
      amounts received  in connection with the Polish Fields;
      and

            

    

     

    
      	
              (f)  

            	
              all
      other revenues not otherwise
allocated,

            

    

     

    shall be
deposited into the relevant Onshore Proceeds Account.

     

    
      	
              7.4  

            	
              Withdrawals
      from the Onshore Proceeds Accounts

            

    

     

    Provided
that there is no Default or Event of Default which is continuing, the Borrower
shall only be entitled to withdraw amounts from the Onshore Proceeds Accounts
for the following purposes and in the following order of priority:

     

    
      	
              (a)  

            	
              to
      meet Permitted Expenditure;

            

    

     

    
      	
              (b)  

            	
              on
      a pari passu
      basis:

            

    

     

    
      	
              (i)  

            	
              to
      pay any fees, interest and expenses due under the Finance Documents;
      and

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              to
      make any hedging payments under a Hedging Agreement which are of recurring
      nature and are not a direct or indirect result of a voluntary termination
      of that Hedging Agreement.

            

    

     

    
      	
              (c)  

            	
              to
      make mandatory prepayments pursuant to Clause 9.1 (Illegality), Clause 9.2
      (Change of
      control), Clause 9.3 (Refinancing), and
      Clause 9.6 (Right of
      replacement or repayment and cancellation in relation to a single
      Lender);

            

    

     

    
      	
              (d)  

            	
              to
      make repayments of principal under the Facility in accordance with Clause
      8.2 (Reduction);
      and

            

    

     

    
      	
              (e)  

            	
              if,
      following the Borrower’s request, the Agent is satisfied that immediately
      following such payment, the amount standing to the credit of the Onshore
      Proceeds Accounts would be at least equal to the Gross Expenditure (as
      forecasted in the then current Projection) to be incurred on the Borrowing
      Base Assets for the six (6) month period following the most recent
      Recalculation Date to:

            

    

     

    
      	
              (i)  

            	
               make
      voluntary repayments or prepayments under the Facility;
  and

            

    

     

    
      	
              (ii)  

            	
               make
      any non-recurring payments under the Hedging
  Agreements.

            

    

     

    
      	
              7.5  

            	
              Deposits
      into the Liquidation Account

            

    

     

    The
Borrower shall procure that sufficient funds are credited to the Liquidation
Account to comply with its obligations under Article 26c of the Polish
Geological and Mining Law.

     

    
      	
              7.6  

            	
              Withdrawals
      from the Liquidation Account

            

    

     

    The
Borrower shall not make any withdrawals from the Liquidation Account until it
has provided the Agent with a copy of the relevant approval from the appropriate
Polish mining supervisory authority.

     

    
      	
              7.7  

            	
              Permitted
      withdrawals – General

            

    

     

    
      	
              (a)  

            	
              No
      payments to any Project Account, or withdrawals from any Project Account
      shall be made except as expressly permitted by this Agreement and the
      Account Bank Agreement or with the approval of the Majority
      Lenders.

            

    

     

    
      	
              (b)  

            	
              All
      amounts withdrawn from any Project Account by the Borrower for application
      in or towards making a specific payment or meeting a specific liability
      shall be applied in or towards making that payment or meeting that
      liability and for no other purpose.

            

    

     

     

    

      
        
          
            
              	
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              7.8  

            	
              Withdrawals
      during a Default

            

    

     

    
      	
              (a)  

            	
              The
      Borrower may not:

            

    

     

    
      	
              (i)  

            	
              withdraw
      any moneys from any Project Account at any time when a Default or Event of
      Default has occurred and is continuing and has been notified by the Agent
      to the Borrower unless such withdrawal
is:

            

    

     

    
      	
              (A)  

            	
              to
      fund costs arising from the actions of the Borrower, acting as a
      Reasonable and Prudent Operator and directly resulting from an Emergency
      subject to the prior written consent of the Majority
    Lenders;

            

    

     

    
      	
              (B)  

            	
              in
      payment of Taxes; or

            

    

     

    
      	
              (ii)  

            	
              withdraw
      any moneys from any Project Account following receipt by the Borrower of a
      notice from the Agent pursuant to Clause 23.23 (Acceleration).

            

    

     

    
      	
              (b)  

            	
              The
      Borrower acknowledges that, upon any enforcement of any Transaction
      Security over the Project Accounts, the Security Trustee shall be entitled
      to require the Account Bank to pay any money standing to the credit of the
      Project Accounts to the Security
Trustee.

            

    

     

    

     

    
      
        
          
            	
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    SECTION
6

     

    REPAYMENT,
PREPAYMENT AND CANCELLATION

     

    
      	
              8.  

            	
              REPAYMENT

            

    

     

    
      	
              8.1  

            	
              Repayment
      of Loans

            

    

     

    
      	
              (a)  

            	
              The
      Borrower shall repay each Loan on the last day of its Interest
      Period.

            

    

     

    
      	
              (b)  

            	
              Subject
      to compliance with the other terms of this Agreement the Borrower may
      borrow a Rollover Loan on the last day of the Interest Period pertaining
      to a Loan after serving a Utilisation Request in accordance with Clause 5
      (Utilisation –
      Loans) and if the Borrower so serves a Utilisation Request, as
      specified in this paragraph (b) of Clause 8.1, then the relevant Loan
      shall be deemed to have been repaid to the Lenders on the last day of the
      relevant Interest Period and to have been immediately reborrowed as a
      Rollover Loan by the Borrower from the Lenders for the Interest Period
      selected in the relevant Utilisation
Request.

            

    

     

    
      	
              (c)  

            	
              Notwithstanding
      any other provision of this Agreement, all Utilisations and other amounts
      outstanding under the Facility shall be repaid on the Final Maturity Date
      and all Commitments cancelled.

            

    

     

    
      	
              8.2  

            	
              Reduction

            

    

     

    
      	
              (a)  

            	
              Subject
      to Clause 9.4 (Voluntary
      cancellation), the Total Commitments shall be reduced on each
      Reduction Date to the amount set out opposite each Reduction Date in
      Schedule 3 (Reduced
      Commitments) with each Lender’s Commitment reduced pro rata, provided that
      if such Reduction Date is not a Business Day that Reduction Date shall
      instead fall on the preceding Business
Day.

            

    

     

    
      	
              (b)  

            	
              The
      Borrower shall ensure that sufficient Loans are repaid on a Reduction Date
      to the extent necessary so that the aggregate of the outstanding Loans
      (after that repayment) is equal to or less than the reduced amount of the
      Total Commitments at that time.

            

    

     

    
      	
              (c)  

            	
              The
      Borrower shall ensure that sufficient Loans are repaid on a Recalculation
      Date to the extent necessary so that the aggregate of the outstanding
      Loans (after that repayment) is equal to or less than the Borrowing Base
      Amount (which, for the avoidance of doubt, shall take into account any
      permitted disposal of part or whole of a Borrowing Base Asset by way of
      share sale or asset sale pursuant to Clause 22.16 (Disposals)) applicable
      on the day after such Recalculation
Date.

            

    

     

    
      	
              (d)  

            	
              Any
      reduction of the Total Commitments shall reduce rateably the Commitment of
      each Lender.

            

    

     

    
      	
              (e)  

            	
              If
      the Borrower cancels the whole or any part of the Commitments in
      accordance with Clause 9.4 (Voluntary
      cancellation), then the amount of each Lender’s Commitment for each
      Reduction Date falling after that cancellation will reduce pro rata in
      chronological order by the amount
cancelled.

            

    

     

    
      
        
          
            	
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              (f)  

            	
              Any
      repayments of Loans under Clause 8.2(b) or Clause 8.2(c) shall be applied
      towards such Loans as the Agent (acting in consultation with the Borrower)
      shall determine.

            

    

     

    
      	
              (g)  

            	
              The
      Total Commitments shall reduce to zero on the Final Maturity
      Date.

            

    

     

    
      	
              9.  

            	
              PREPAYMENT
      AND CANCELLATION

            

    

     

    
      	
              9.1  

            	
              Illegality

            

    

     

    If, at
any time, it is or will become unlawful in any applicable jurisdiction for a
Lender to perform any of its obligations as contemplated by this Agreement or to
fund or maintain its participation in any Loan:

     

    
      	
              (a)  

            	
              that
      Lender shall promptly notify the Agent upon becoming aware of that
      event;

            

    

     

    
      	
              (b)  

            	
              upon
      the Agent notifying the Borrower, the Commitment of that Lender will be
      immediately cancelled; and

            

    

     

    
      	
              (c)  

            	
              the
      Borrower shall repay that Lender’s participation in the Loans made to the
      Borrower on the last day of the Interest Period for each Loan occurring
      after the Agent has notified the Borrower or, if earlier, the date
      specified by the Lender in the notice delivered to the Agent (being no
      earlier than the last day of any applicable grace period permitted by
      law).

            

    

     

    
      	
              9.2  

            	
              Change
      of control

            

    

     

    
      	
              (a)  

            	
              For
      the purpose of this Clause:

            

    

     

    “a Change of Control Event”
occurs if:

     

    
      	
              (i)  

            	
              the
      Parent does not or ceases to hold, directly or indirectly and both legally
      and beneficially, and have the right to vote as it sees fit, more than 50
      per cent. of the share capital of any
Obligor;

            

    

     

    
      	
              (ii)  

            	
              the
      Parent does not or ceases to have the right to direct the management of
      any Obligor to comply with the types of obligations imposed by the Finance
      Documents or to determine the composition of a majority of the board of
      directors of any Obligor;

            

    

     

    
      	
              (iii)  

            	
              any
      person or two or more persons acting in concert shall have acquired
      beneficial ownership, directly or indirectly, of, or shall have acquired
      by contract or otherwise, or shall have entered into a contract or
      arrangement that, upon consummation, will result in its or their
      acquisition of or control over, voting stock of the Parent (or other
      securities convertible into such voting stock) representing 50 per cent.
      or more of the combined voting power of all voting stock of the Parent;
      or

            

    

     

    
      
        
          
            	
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              (iv)  

            	
              during
      any period of up to 12 consecutive months, individuals who at the
      beginning of such 12-month period were directors of the Parent (together
      with any new director whose election by the Parent’s board of directors or
      whose nomination for election by Parent’s stockholders was approved by a
      vote of at least two-thirds of the directors then still in office who
      either were directors at the beginning of such period or whose election or
      nomination for election was previously so approved) cease for any reason
      to constitute a majority of the directors of Parent then in
      office.

            

    

     

    “acting in concert” means, a
group of persons who, pursuant to an agreement or understanding (whether formal
or informal), actively co-operate, through the acquisition by any of them,
either directly or indirectly, of shares in an Obligor, to obtain or consolidate
control of the Obligor.

     

    “control” means:

     

    
      	
               
      

            	
              (i)

            	
              the
      power (whether by way of ownership of shares, proxy, contract, agency or
      otherwise) to:

            

    

     

    
      	
              (A)  

            	
              cast,
      or control the casting of, more than one-half of the maximum number of
      votes that might be cast at a general meeting of an Obligor;
      or

            

    

     

    
      	
              (B)  

            	
              appoint
      or remove all, or the majority, of the directors or other equivalent
      officers of the Obligor; or

            

    

     

    
      	
              (C)  

            	
              give
      directions with respect to the operating and financial policies of the
      Obligor which the directors or other equivalent officers of the Obligor
      are obliged to comply with; or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      holding of more than one-half of the issued share capital of an Obligor
      (excluding any part of that issued share capital that carries no right to
      participate beyond a specified amount in a distribution of either profits
      or capital).

            

    

     

    
      	
              (b)  

            	
              If
      a Change of Control Event occurs:

            

    

     

    
      	
              (i)  

            	
              the
      Borrower and/or the Parent shall promptly notify the Agent upon becoming
      aware of that event; and

            

    

     

    
      	
              (ii)  

            	
              the
      Agent shall, by not less than ten (10) days notice to the Borrower, cancel
      the Total Commitments and declare all outstanding Loans, together with
      accrued interest and all other amounts accrued under the Finance
      Documents, immediately due and payable, whereupon the Total Commitments
      will be cancelled and all such outstanding amounts will become immediately
      due and payable.

            

    

     

    
      
        
          
            	
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              9.3  

            	
              Refinancing

            

    

     

    If this
Facility is refinanced at any time in whole or in part, then on the date on
which the first drawing is made under the credit facility or any other funding
arrangement entered into for the purposes of such refinancing:

     

    
      	
              (a)  

            	
              the
      Total Commitments shall be cancelled;
and

            

    

     

    
      	
              (b)  

            	
              the
      Borrower must repay all Utilisations and other amounts outstanding under
      the Finance Documents.

            

    

     

    
      	
              9.4  

            	
              Voluntary
      cancellation

            

    

     

    The
Borrower may, if it gives the Agent not less than ten (10) Business Days’ (or
such shorter period as the Majority Lenders may agree) prior notice, cancel the
whole or any part (being a minimum amount of USD 1,000,000 or if less, the
undrawn amount) of the Available Facility.  Any cancellation under
this Clause 9.4 shall reduce the Commitments of the Lenders
rateably.

     

    
      	
              9.5  

            	
              Voluntary
      Prepayment of Loans

            

    

     

    The
Borrower may, if it gives the Agent not less than ten (10) Business Days’ (or
such shorter period as the Majority Lenders may agree) prior notice, prepay the
whole or any part of a Loan (but if in part, being an amount that reduces the
amount of the Loan by a minimum amount of USD 1,000,000).

     

    
      	
              9.6  

            	
              Right
      of replacement or repayment and cancellation in relation to a single
      Lender

            

    

     

    
      	
              (a)  

            	
              If:

            

    

     

    
      	
              (i)  

            	
              any
      sum payable to any Lender by an Obligor is required to be increased under
      paragraph (c) of Clause 14.2 (Tax
      gross-up);

            

    

     

    
      	
              (ii)  

            	
              any
      Lender claims indemnification from the Borrower under Clause 14.3 (Tax indemnity) or
      Clause 15.1 (Increased
      costs); or

            

    

     

    
      	
              (iii)  

            	
              any
      Lender notifies the Agent of its Additional Cost Rate under paragraph 3 of
      Schedule 6 (Mandatory
      Cost formulae),

            

    

     

    the
Borrower may, whilst (in the case of paragraphs (i) and (ii) above) the
circumstance giving rise to the requirement for that increase or indemnification
continues or (in the case of paragraph (iii) above) that Additional Cost Rate is
greater than zero, give the Agent notice of cancellation of the Commitment of
that Lender and its intention to procure the repayment of that Lender’s
participation in the Loans or give the Agent notice of its intention to replace
that Lender in accordance with paragraph (d) below.

     

    
      	
              (b)  

            	
              On
      receipt of a notice of cancellation referred to in paragraph (a) above,
      the Commitment of that Lender shall immediately be reduced to
      zero.

            

    

     

    
      
        
          
            	
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              (c)  

            	
              On
      the last day of each Interest Period which ends after the Borrower has
      given notice of cancellation under paragraph (a) above (or, if earlier,
      the date specified by the Borrower in that notice), the Borrower shall
      repay that Lender’s participation in that
Loan.

            

    

     

    
      	
              (d)  

            	
              The
      Borrower may, in the circumstances set out in paragraph (a) above, on five
      (5) Business Days’ prior notice to the Agent and that Lender, replace that
      Lender by requiring that Lender to (and to the extent permitted by law,
      that Lender shall) transfer pursuant to Clause 24 (Changes to the Lenders)
      all (and not part only) of its rights and obligations under this Agreement
      to a Lender or other bank, financial institution, trust, fund or other
      entity selected by the Borrower which confirms its willingness to assume
      and does assume all the obligations of the transferring Lender in
      accordance with Clause 24 (Changes to the Lenders)
      for a purchase price in cash or other cash payment payable at the time of
      the transfer equal to the outstanding principal amount of such Lender’s
      participation in the outstanding Loans and all accrued interest, Break
      Costs and other amounts payable in relation thereto under the Finance
      Documents.

            

    

     

    
      	
              (e)  

            	
              The
      replacement of a Lender pursuant to paragraph (d) above shall be subject
      to the following conditions:

            

    

     

    
      	
              (i)  

            	
              the
      Borrower shall have no right to replace the
  Agent;

            

    

     

    
      	
              (ii)  

            	
              neither
      the Agent nor any Lender shall have any obligation to find a replacement
      Lender; and

            

    

     

    
      	
              (iii)  

            	
              in
      no event shall the Lender replaced under paragraph (d) above be required
      to pay or surrender any of the fees received by such Lender pursuant to
      the Finance Documents.

            

    

     

    
      	
              9.7  

            	
              Restrictions

            

    

     

    
      	
              (a)  

            	
              Any
      notice of cancellation or prepayment given by any Party under this Clause
      9 shall be irrevocable and, unless a contrary indication appears in this
      Agreement, shall specify the date or dates upon which the relevant
      cancellation or prepayment is to be made and the amount of that
      cancellation or prepayment.

            

    

     

    
      	
              (b)  

            	
              Any
      prepayment under this Agreement shall be made together with accrued
      interest on the amount prepaid and, subject to any Break Costs, without
      premium or penalty.

            

    

     

    
      	
              (c)  

            	
              Unless
      a contrary indication appears in this Agreement, any part of the Facility
      which is prepaid or repaid may be reborrowed in accordance with the terms
      of this Agreement.

            

    

     

    
      	
              (d)  

            	
              The
      Borrower shall not repay or prepay all or any part of the Loans or cancel
      all or any part of the Commitments except at the times and in the manner
      expressly provided for in this
Agreement.

            

    

     

    
      
        
          
            	
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              (e)  

            	
              No
      amount of the Total Commitments cancelled under this Agreement may be
      subsequently reinstated.

            

    

     

    
      	
              (f)  

            	
              If
      the Agent receives a notice under this Clause 9 it shall promptly forward
      a copy of that notice to either the Borrower or the affected Lender, as
      appropriate.

            

    

     

    
      
        
          
            	
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    SECTION
7

     

    COSTS
OF UTILISATION

     

    
      	
              10.  

            	
              INTEREST

            

    

     

    
      	
              10.1  

            	
              Calculation
      of interest

            

    

     

    The rate
of interest on each Loan for each Interest Period is the percentage rate per
annum which is the aggregate of the applicable:

     

    
      	
              (a)  

            	
              Margin;

            

    

     

    
      	
              (b)  

            	
              LIBOR;
      and

            

    

     

    
      	
              (c)  

            	
              Mandatory
      Cost, if any.

            

    

     

    
      	
              10.2  

            	
              Payment
      of interest

            

    

     

    On the
last day of each Interest Period the Borrower shall pay accrued interest on the
Loan to which that Interest Period relates (and, if the Interest Period is
longer than six Months, on the dates falling at six Monthly intervals after the
first day of the Interest Period).

     

    
      	
              10.3  

            	
              Default
      interest

            

    

     

    
      	
              (a)  

            	
              If
      an Obligor fails to pay any amount payable by it under a Finance Document
      on its due date, interest shall accrue on the overdue amount from the due
      date up to the date of actual payment (both before and after judgment) at
      a rate which, subject to paragraph (b) below, is two (2) per cent higher
      than the rate which would have been payable if the overdue amount had,
      during the period of non-payment, constituted a Loan in the currency of
      the overdue amount for successive Interest Periods, each of a duration
      selected by the Agent (acting reasonably).  Any interest
      accruing under this Clause 10.3 shall be immediately payable by the
      Obligor on demand by the Agent.

            

    

     

    
      	
              (b)  

            	
              If
      any overdue amount consists of all or part of a Loan which became due on a
      day which was not the last day of an Interest Period relating to that
      Loan:

            

    

     

    
      	
              (i)  

            	
              the
      first Interest Period for that overdue amount shall have a duration equal
      to the unexpired portion of the current Interest Period relating to that
      Loan; and

            

    

     

    
      	
              (ii)  

            	
              the
      rate of interest applying to the overdue amount during that first Interest
      Period shall be two (2) per cent. higher than the rate which would have
      applied if the overdue amount had not become
  due.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      
        
          
            	
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              10.4  

            	
              Notification
      of rates of interest

            

    

     

    The Agent
shall promptly notify the Lenders and the Borrower of the determination of a
rate of interest under this Agreement.

     

    
      	
              11.  

            	
              INTEREST
      PERIODS

            

    

     

    
      	
              11.1  

            	
              Selection
      of Interest Periods

            

    

     

    
      	
              (a)  

            	
              The
      Borrower may select an Interest Period for a Loan in the Utilisation
      Request for that Loan.

            

    

     

    
      	
              (b)  

            	
              Subject
      to this Clause 11, the Borrower may select an Interest Period of one, two,
      three or six Months or any other period agreed between the Borrower and
      the Agent (acting on the instructions of all the Lenders in relation to
      the relevant Loan).

            

    

     

    
      	
              (c)  

            	
              The
      Borrower may select an Interest Period of less than six Months which does
      not coincide with the periods specified in paragraph (b) of Clause 11.1
      for the purpose of ensuring that (i) the last day of such Interest Period
      coincides with a Reduction Date and (ii) there are sufficient Loans (with
      an aggregate amount equal to or greater than the amount required to be
      repaid under Clause 8.2 (Reduction) on such
      Reduction Date) which have an Interest Period ending on such Reduction
      Date.

            

    

     

    
      	
              (d)  

            	
              An
      Interest Period for a Loan shall not extend beyond the Final Maturity
      Date.

            

    

     

    
      	
              (e)  

            	
              Each
      Interest Period for a Loan shall start on the Utilisation
      Date.

            

    

     

    
      	
              (f)  

            	
              A
      Loan has one Interest Period only.

            

    

     

    
      	
              11.2  

            	
              Changes
      to Interest Periods

            

    

     

    
      	
              (a)  

            	
              Prior
      to determining the interest rate for a Loan, the Agent may shorten the
      Interest Period for any Loan to ensure that (i) the last day of such
      Interest Period coincides with a Reduction Date and (ii) there are
      sufficient Loans (with an aggregate amount equal to or greater than the
      amount required to be repaid under Clause 8.2 (Reduction) on such
      Reduction Date) which have an Interest Period ending on such Reduction
      Date.

            

    

     

    
      	
              (b)  

            	
              If
      the Agent makes any change to an Interest Period referred to in this
      Clause 11.2, it shall promptly notify the Borrower and the
      Lenders.

            

    

     

    
      	
              11.3  

            	
              Non-Business
      Days

            

    

     

    If an
Interest Period would otherwise end on a day which is not a Business Day, that
Interest Period will instead end on the next Business Day in that calendar month
(if there is one) or the preceding Business Day (if there is not).

     

    

      
        
          
            
              	
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              12.  

            	
              CHANGES
      TO THE CALCULATION OF INTEREST

            

    

     

    
      	
              12.1  

            	
              Absence
      of quotations

            

    

     

    Subject
to Clause 12.2 (Market
disruption), if LIBOR is to be determined by reference to the Reference
Banks but a Reference Bank does not supply a quotation by the Specified Time on
the Quotation Day, the applicable LIBOR shall be determined on the basis of the
quotations of the remaining Reference Banks.

     

    
      	
              12.2  

            	
              Market
      disruption

            

    

     

    
      	
              (a)  

            	
              If
      a Market Disruption Event occurs in relation to a Loan for any Interest
      Period, then the rate of interest on each Lender’s share of that Loan for
      the Interest Period shall be the percentage rate per annum which is the
      sum of:

            

    

     

    
      	
              (i)  

            	
              the
      Margin;

            

    

     

    
      	
              (ii)  

            	
              the
      rate notified to the Agent by that Lender as soon as practicable and in
      any event before interest is due to be paid in respect of that Interest
      Period, to be that which expresses as a percentage rate per annum the cost
      to that Lender of funding its participation in that Loan from whatever
      source it may reasonably select;
and

            

    

     

    
      	
              (iii)  

            	
              the
      Mandatory Cost, if any, applicable to that Lender’s participation in the
      Loan.

            

    

     

    
      	
              (b)  

            	
              In
      this Agreement “Market
      Disruption Event” means:

            

    

     

    
      	
              (i)  

            	
              at
      or about noon on the Quotation Day for the relevant Interest Period the
      Screen Rate is not available and none or only one of the Reference Banks
      supplies a rate to the Agent to determine LIBOR for dollars and the
      relevant Interest Period; or

            

    

     

    
      	
              (ii)  

            	
              before
      close of business in London on the Quotation Day for the relevant Interest
      Period, the Agent receives notifications from a Lender or Lenders (whose
      participations in a Loan exceed 35 per cent. of that Loan) that the cost
      to it of obtaining matching deposits in the Relevant Interbank Market
      would be in excess of LIBOR.

            

    

     

    
      	
              12.3  

            	
              Alternative
      basis of interest or funding

            

    

     

    
      	
              (a)  

            	
              If
      a Market Disruption Event occurs and the Agent or the Borrower so
      requires, the Agent and the Borrower shall enter into negotiations (for a
      period of not more than thirty days) with a view to agreeing a substitute
      basis for determining the rate of
interest.

            

    

     

    
      	
              (b)  

            	
              Any
      alternative basis agreed pursuant to paragraph (a) above shall, with the
      prior consent of all the Lenders and the Borrower, be binding on all
      Parties.

            

    

     

    
      
        
          
            	
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              12.4  

            	
              Break
      Costs

            

    

     

    
      	
              (a)  

            	
              The
      Borrower shall, within three Business Days of demand by a Finance Party,
      pay to that Finance Party its Break Costs attributable to all or any part
      of a Loan or Unpaid Sum being paid by the Borrower on a day other than the
      last day of an Interest Period for that Loan or Unpaid
  Sum.

            

    

     

    
      	
              (b)  

            	
              Each
      Lender shall, as soon as reasonably practicable after a demand by the
      Agent, provide a certificate confirming the amount of its Break Costs for
      any Interest Period in which they
accrue.

            

    

     

    
      	
              13.  

            	
              FEES

            

    

     

    
      	
              13.1  

            	
              Commitment
      fee

            

    

     

    
      	
              (a)  

            	
              The
      Borrower shall pay to the Agent (for the account of each Lender) a fee in
      dollars computed at the rate of 50 per cent. of the Margin payable on each
      Lender’s Available Commitment for the period from Transaction Close to the
      Final Maturity Date.

            

    

     

    
      	
              (b)  

            	
              The
      accrued commitment fee is payable on the last day of each successive
      period of three Months which ends during the Availability Period, on the
      last day of the Availability Period and, if cancelled in full, on the
      cancelled amount of the relevant Lender’s Commitment at the time the
      cancellation is effective.

            

    

     

    
      	
              13.2  

            	
              Arrangement
      fee

            

    

     

    The
Borrower shall pay to each Mandated Lead Arranger an arrangement fee in the
amount and at the times agreed in a Fee Letter.

     

    
      	
              13.3  

            	
              Agency
      fee

            

    

     

    The
Borrower shall pay to the Agent (for its own account) an agency fee in the
amount and at the times agreed in a Fee Letter.

     

    
      	
              13.4  

            	
              Security
      Trustee fee

            

    

     

    The
Borrower shall pay to the Security Trustee (for its own account) the security
trustee fee in the amount and at the times agreed in a Fee Letter.

     

    
      
        
          
            	
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    SECTION
8

     

    ADDITIONAL
PAYMENT OBLIGATIONS

     

    
      	
              14.  

            	
              TAX
      GROSS UP AND INDEMNITIES

            

    

     

    
      	
              14.1  

            	
              Definitions

            

    

     

    
      	
              (a)  

            	
              In
      this Agreement:

            

    

     

    “Certificate of Residence”
means a document issued by the appropriate tax authorities of a country of
residence of the Treaty Lender confirming its tax residency in that
country.

     

    “Protected Party” means a
Finance Party which is or will be subject to any liability, or required to make
any payment, for or on account of Tax in relation to a sum received or
receivable (or any sum deemed for the purposes of Tax to be received or
receivable) under a Finance Document.

     

    “Qualifying Lender” means a
Lender which is beneficially entitled to interest payable to that Lender in
respect of an advance under a Finance Document and is:

     

    
      	
              (i)  

            	
              a
      resident in Poland;

            

    

     

    
      	
              (ii)  

            	
              acting
      through a Facility office established in Poland and constituting a
      permanent establishment within the meaning of the relevant double taxation
      agreement; or

            

    

     

    
      	
              (iii)  

            	
              a
      Treaty Lender which has provided the Borrower with the Certificate of
      Residence.

            

    

     

    “Tax Credit” means a credit
against, relief or remission for, or repayment of any Tax.

     

    “Tax Deduction” means a
deduction or withholding for or on account of Tax from a payment under a Finance
Document.

     

    “Tax Payment” means either the
increase in a payment made by an Obligor to a Finance Party under Clause 14.2
(Tax gross-up) or a
payment under Clause 14.3 (Tax
indemnity).

     

    “Treaty Lender” means a Lender
which:

     

    
      	
               
      

            	
              (i)

            	
              is
      treated as a resident of a Treaty State for the purposes of the Treaty;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              does
      not carry on a business in Poland through a permanent establishment with
      which that Lender’s participation in the Loan is effectively
      connected.

            

    

     

    
      
        
          
            	
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    “Treaty State” means a
jurisdiction having a double taxation agreement (a “Treaty”) with Poland which
makes provision for full exemption from tax imposed by Poland on
interest.

     

    
      	
              (b)  

            	
              Unless
      a contrary indication appears, in this Clause 14 a reference to
      “determines” or “determined” means a determination made in the absolute
      discretion of the person making the
  determination.

            

    

     

    
      	
              14.2  

            	
              Tax
      gross-up

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor shall make all payments to be made by it without any Tax
      Deduction, unless a Tax Deduction is required by
  law.

            

    

     

    
      	
              (b)  

            	
              The
      Borrower shall promptly upon becoming aware that an Obligor must make a
      Tax Deduction (or that there is any change in the rate or the basis of a
      Tax Deduction)  notify the Agent
      accordingly.  Similarly, a Lender shall notify the Agent on
      becoming so aware in respect of a payment payable to that
      Lender.  If the Agent receives such notification from a Lender
      it shall notify each Obligor.

            

    

     

    
      	
              (c)  

            	
              If
      a Tax Deduction is required by law to be made by an Obligor, the amount of
      the payment due from that Obligor shall be increased to an amount which
      (after making any Tax Deduction) leaves an amount equal to the payment
      which would have been due if no Tax Deduction had been
      required.

            

    

     

    
      	
              (d)  

            	
              A
      payment shall not be increased under paragraph (c) above by reason of a
      Tax Deduction on account of Tax imposed by Poland, if on the date on which
      the payment falls due:

            

    

     

    
      	
              (i)  

            	
              the
      payment could have been made to the relevant Lender without a Tax
      Deduction if the Lender had been a Qualifying Lender, but on that date
      that Lender is not or has ceased to be a Qualifying Lender other than as a
      result of any change after the date it became a Lender under this
      Agreement in (or in the interpretation, administration, or application of)
      any law or Treaty, or any published practice or published concession of
      any relevant taxing authority; or

            

    

     

    
      	
              (ii)  

            	
              the
      relevant Lender is a Treaty Lender and the Obligor making the payment is
      able to demonstrate that the payment could have been made to the Lender
      without the Tax Deduction had that Lender complied with its obligations
      under paragraph (g) below.

            

    

     

    
      	
              (e)  

            	
              If
      an Obligor is required to make a Tax Deduction, that Obligor shall make
      that Tax Deduction and any payment required in connection with that Tax
      Deduction within the time allowed and in the minimum amount required by
      law.

            

    

     

    
      
        
          
            	
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              (f)  

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

            

    

     

    
      	
              (g)  

            	
              A
      Treaty Lender and each Obligor which makes a payment to which that Treaty
      Lender is entitled shall co-operate in completing any procedural
      formalities necessary for that Obligor to obtain authorisation to make
      that payment without a Tax
Deduction.

            

    

     

    
      	
              14.3  

            	
              Tax
      indemnity

            

    

     

    
      	
              (a)  

            	
              The
      Borrower shall (within three Business Days of demand by the Agent) pay to
      a Protected Party an amount equal to the loss, liability or cost which
      that Protected Party determines will be or has been (directly or
      indirectly) suffered for or on account of Tax by that Protected Party in
      respect of a Finance Document.

            

    

     

    
      	
              (b)  

            	
              Paragraph
      (a) above shall not apply:

            

    

     

    
      	
              (i)  

            	
              with
      respect to any Tax assessed on a Finance
Party:

            

    

     

    
      	
              (A)  

            	
              under
      the law of the jurisdiction in which that Finance Party is incorporated
      or, if different, the jurisdiction (or jurisdictions) in which that
      Finance Party is treated as resident for tax purposes;
  or

            

    

     

    
      	
              (B)  

            	
              under
      the law of the jurisdiction in which that Finance Party’s Facility Office
      is located in respect of amounts received or receivable in that
      jurisdiction,

            

    

     

    if that
Tax is imposed on or calculated by reference to the net income received or
receivable (but not any sum deemed to be received or receivable) by that Finance
Party; or

     

    
      	
              (ii)  

            	
              to
      the extent a loss, liability or
cost:

            

    

     

    
      	
              (A)  

            	
              is
      compensated for by an increased payment under Clause 14.2 (Tax gross-up);
      or

            

    

     

    
      	
              (B)  

            	
              would
      have been compensated for by an increased payment under Clause 14.2 (Tax gross-up) but was
      not so compensated solely because one of the exclusions in paragraph (d)
      of Clause 14.2 (Tax
      gross-up) applied.

            

    

     

    
      	
              (c)  

            	
              A
      Protected Party making, or intending to make a claim under paragraph (a)
      above shall promptly notify the Agent of the event which will give, or has
      given, rise to the claim, following which the Agent shall notify the
      Borrower.

            

    

     

    
      
        
          
            	
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              (d)  

            	
              A
      Protected Party shall, on receiving a payment from an Obligor under this
      Clause 14.3, notify the Agent.

            

    

     

    
      	
              14.4  

            	
              Tax
      Credit

            

    

     

    If an
Obligor makes a Tax Payment and the relevant Finance Party determines
that:

     

    
      	
              (a)  

            	
              a
      Tax Credit is attributable either to an increased payment of which that
      Tax Payment forms part, or to that Tax Payment;
  and

            

    

     

    
      	
              (b)  

            	
              that
      Finance Party has obtained, utilised and retained that Tax
      Credit,

            

    

     

    the
Finance Party shall pay an amount to the Obligor which that Finance Party
determines will leave it (after that payment) in the same after-Tax position as
it would have been in had the Tax Payment not been required to be made by the
Obligor (but without any obligation to arrange its tax affairs other than it
sees fit or disclose any information about its tax affairs).

     

    
      	
              14.5  

            	
              Lender
      Status Confirmation

            

    

     

    Each
Lender which becomes a Party to this Agreement after the date of this Agreement
shall indicate, in the Transfer Certificate or Assignment Agreement which it
executes on becoming a Party, and for the benefit of the Agent and without
liability to any Obligor, which of the following categories it falls
in:

     

    
      	
              (a)  

            	
              not
      a Qualifying Lender;

            

    

     

    
      	
              (b)  

            	
              a
      Qualifying Lender (other than a Treaty Lender);
  or

            

    

     

    
      	
              (c)  

            	
              a
      Treaty Lender.

            

    

     

    If a New
Lender fails to indicate its status in accordance with this Clause 14.5 then
such New Lender shall be treated for the purposes of this Agreement (including
by each Obligor) as if it is not a Qualifying Lender until such time as it
notifies the Agent which category applies (and the Agent, upon receipt of such
notification, shall inform the Borrower).  For the avoidance of doubt,
a Transfer Certificate or Assignment Agreement shall not be invalidated by any
failure of a Lender to comply with this Clause 14.5.

     

    
      	
              14.6  

            	
              Stamp
      taxes

            

    

     

    The
Borrower shall pay and, within three Business Days of demand, indemnify each
Secured Party and the Mandated Lead Arrangers against any cost, loss or
liability that Secured Party or Mandated Lead Arranger incurs in relation to all
stamp duty, registration and other similar Taxes payable in respect of any
Finance Document.

     

    
      
        
          
            	
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              14.7  

            	
              VAT

            

    

     

    
      	
              (a)  

            	
              All
      amounts set out, or expressed in a Finance Document to be payable by any
      Party to a Finance Party which (in whole or in part) constitute the
      consideration for a supply or supplies for VAT purposes shall be deemed to
      be exclusive of any VAT which is chargeable on such supply or supplies,
      and accordingly, subject to paragraph (b) below, if VAT is or becomes
      chargeable on any supply made by any Finance Party to any Party under a
      Finance Document, that Party shall pay to the Finance Party (in addition
      to and at the same time as paying any other consideration for such supply)
      an amount equal to the amount of such VAT (and such Finance Party shall
      promptly provide an appropriate VAT invoice to such
  Party).

            

    

     

    
      	
              (b)  

            	
              If
      VAT is or becomes chargeable on any supply made by any Finance Party (the
      “Supplier”) to any
      other Finance Party (the “Recipient”) under a
      Finance Document, and any Party other than the Recipient (the “Subject Party”) is
      required by the terms of any Finance Document to pay an amount equal to
      the consideration for such supply to the Supplier (rather than being
      required to reimburse the Recipient in respect of that consideration),
      such Party shall also pay to the Supplier (in addition to and at the same
      time as paying such amount) an amount equal to the amount of such
      VAT.  The Recipient will promptly pay to the Subject Party an
      amount equal to any credit or repayment obtained by the Recipient from the
      relevant tax authority which the Recipient reasonably determines is in
      respect of such VAT.

            

    

     

    
      	
              (c)  

            	
              Where
      a Finance Document requires any Party to reimburse or indemnify a Finance
      Party for any cost or expense, that Party shall reimburse or indemnify (as
      the case may be) such Finance Party for the full amount of such cost or
      expense, including such part thereof as represents VAT, save to the extent
      that such Finance Party reasonably determines that it is entitled to
      credit or repayment in respect of such VAT from the relevant tax
      authority.

            

    

     

    
      	
              (d)  

            	
              Any
      reference in this Clause 14.7 to any Party shall, at any time when such
      Party is treated as a member of a group for VAT purposes, include (where
      appropriate and unless the context otherwise requires) a reference to the
      representative member of such group at such time (the term “representative
      member” to have the same meaning as in the Value Added Tax Act
      1994).

            

    

     

    
      	
              15.  

            	
              INCREASED
      COSTS

            

    

     

    
      	
              15.1  

            	
              Increased
      costs

            

    

     

    
      	
              (a)  

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

            

    

     

    
      
        
          
            	
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              (b)  

            	
              In
      this Agreement “Increased
      Costs” means:

            

    

     

    
      	
              (i)  

            	
              a
      reduction in the rate of return from the Facility or on a Finance Party’s
      (or its Affiliate’s) overall
capital;

            

    

     

    
      	
              (ii)  

            	
              an
      additional or increased cost; or

            

    

     

    
      	
              (iii)  

            	
              a
      reduction of any amount due and payable under any Finance
      Document,

            

    

     

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

     

    
      	
              15.2  

            	
              Increased
      cost claims

            

    

     

    
      	
              (a)  

            	
              A
      Finance Party intending to make a claim pursuant to Clause 15.1 (Increased costs) shall
      notify the Agent of the event giving rise to the claim, following which
      the Agent shall promptly notify the
Borrower.

            

    

     

    
      	
              (b)  

            	
              Each
      Finance Party shall, as soon as practicable after a demand by the Agent,
      provide a certificate confirming the amount of its Increased
      Costs.

            

    

     

    
      	
              15.3  

            	
              Exceptions

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (i)  

            	
              attributable
      to a Tax Deduction required by law to be made by an
    Obligor;

            

    

     

    
      	
              (ii)  

            	
              compensated
      for by Clause 14.3 (Tax
      indemnity) (or would have been compensated for under Clause 14.3
      (Tax indemnity)
      but was not so compensated solely because any of the exclusions in
      paragraph (b) of Clause 14.3 (Tax indemnity)
      applied);

            

    

     

    
      	
              (iii)  

            	
              compensated
      for by the payment of the Mandatory Cost;
or

            

    

     

    
      	
              (iv)  

            	
              attributable
      to the wilful breach by the relevant Finance Party or its Affiliates of
      any law or regulation.

            

    

     

    
      	
              (b)  

            	
              In
      this Clause 15.3, a reference to a “Tax Deduction” has the
      same meaning given to the term in Clause 14.1 (Definitions).

            

    

     

    
      
        
          
            	
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              16.  

            	
              OTHER
      INDEMNITIES

            

    

     

    
      	
              16.1  

            	
              Currency
      indemnity

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (i)  

            	
              making
      or filing a claim or proof against that Obligor;
  or

            

    

     

    
      	
              (ii)  

            	
              obtaining
      or enforcing an order, judgment or award in relation to any litigation or
      arbitration proceedings,

            

    

     

    that
Obligor shall as an independent obligation, within three Business Days of
demand, indemnify each Secured Party and the Mandated Lead Arranger to whom that
Sum is due against any cost, loss or liability arising out of or as a result of
the conversion including any discrepancy between (A) the rate of exchange used
to convert that Sum from the First Currency into the Second Currency and (B) the
rate or rates of exchange available to that person at the time of its receipt of
that Sum.

     

    
      	
              (b)  

            	
              Each
      Obligor waives any right it may have in any jurisdiction to pay any amount
      under the Finance Documents in a currency or currency unit other than that
      in which it is expressed to be
payable.

            

    

     

    
      	
              16.2  

            	
              Other
      indemnities

            

    

     

    Each
Obligor shall, within three Business Days of demand, indemnify each Secured
Party and the Mandated Lead Arrangers against any cost, loss or liability
incurred by that Secured Party or Mandated Lead Arranger as a result
of:

     

    
      	
              (a)  

            	
              the
      occurrence of any Event of Default;

            

    

     

    
      	
              (b)  

            	
              a
      failure by an Obligor to pay any amount due under a Finance Document on
      its due date, including without limitation, any cost, loss or liability
      arising as a result of Clause 28 (Sharing among the Finance
      Parties);

            

    

     

    
      	
              (c)  

            	
              funding,
      or making arrangements to fund, its participation in a Loan requested by
      the Borrower in a Utilisation Request but not made by reason of the
      operation of any one or more of the provisions of this Agreement (other
      than by reason of default or negligence by that Finance Party alone);
      or

            

    

     

    
      	
              (d)  

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

            

    

     

    
      
        
          
            	
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              16.3  

            	
              Indemnity
      to the Agent

            

    

     

    The
Borrower shall promptly indemnify the Agent against any cost, loss or liability
incurred by the Agent (acting reasonably) as a result of:

     

    
      	
              (a)  

            	
              investigating
      any event which it reasonably believes is a Default;
  or

            

    

     

    
      	
              (b)  

            	
              acting
      or relying on any notice, request or instruction which it reasonably
      believes to be genuine, correct and appropriately
    authorised.

            

    

     

    
      	
              16.4  

            	
              Indemnity
      to the Security Trustee

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor shall promptly indemnify the Security Trustee and every Receiver
      and Delegate against any cost, loss or liability incurred by any of them
      as a result of:

            

    

     

    
      	
              (i)  

            	
              the
      taking, holding, protection or enforcement of the Transaction
      Security;

            

    

     

    
      	
              (ii)  

            	
              the
      exercise of any of the rights, powers, discretions and remedies vested in
      the Security Trustee and each Receiver and Delegate by the Finance
      Documents or by law; and

            

    

     

    
      	
              (iii)  

            	
              any
      default by any Obligor in the performance of any of the obligations
      expressed to be assumed by it in the Finance
  Documents.

            

    

     

    
      	
              (b)  

            	
              The
      Security Trustee may, in priority to any payment to the Secured Parties,
      indemnify itself out of the Charged Property in respect of, and pay and
      retain, all sums necessary to give effect to the indemnity in this Clause
      16.4 and shall have a lien on the Transaction Security and the proceeds of
      the enforcement of the Transaction Security for all monies payable to
      it.

            

    

     

    
      	
              17.  

            	
              MITIGATION
      BY THE LENDERS

            

    

     

    
      	
              17.1  

            	
              Mitigation

            

    

     

    
      	
              (a)  

            	
              Each
      Finance Party shall, in consultation with the Borrower, take all
      reasonable steps to mitigate any circumstances which arise and which would
      result in any amount becoming payable under or pursuant to, or cancelled
      pursuant to, any of Clause 9.1 (Illegality), Clause 12
      (Changes to the
      Calculation of Interest), Clause 14 (Tax gross up and
      indemnities), Clause 15 (Increased costs) or
      paragraph 3 of Schedule 6 (Mandatory Cost
      formulae) including (but not limited to) transferring its rights
      and obligations under the Finance Documents to another Affiliate or
      Facility Office.

            

    

     

    
      	
              (b)  

            	
              Paragraph
      (a) above does not in any way limit the obligations of any Obligor under
      the Finance Documents.

            

    

     

    
      
        
          
            	
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              17.2  

            	
              Limitation
      of liability

            

    

     

    
      	
              (a)  

            	
              The
      Borrower shall promptly indemnify each Finance Party for all costs and
      expenses reasonably incurred by that Finance Party as a result of steps
      taken by it under Clause 17.1 (Mitigation).

            

    

     

    
      	
              (b)  

            	
              A
      Finance Party is not obliged to take any steps under Clause 17.1 (Mitigation) if, in the
      opinion of that Finance Party (acting reasonably), to do so might be
      prejudicial to it.

            

    

     

    
      	
              18.  

            	
              COSTS
      AND EXPENSES

            

    

     

    
      	
              18.1  

            	
              Transaction
      expenses

            

    

     

    The
Borrower shall promptly on demand pay the Agent, the Mandated Lead Arrangers and
the Security Trustee the amount of all costs and expenses (including, but not
limited to, legal and consultancy fees) reasonably incurred by any of them (and,
in the case of the Security Trustee, by any Receiver or Delegate) in connection
with:

     

    
      	
              (a)  

            	
              the
      negotiation, preparation, printing, execution, syndication and perfection
      of:

            

    

     

    
      	
              (i)  

            	
              this
      Agreement and any other documents referred to in this Agreement and the
      Transaction Security; and

            

    

     

    
      	
              (ii)  

            	
              any
      other Finance Documents executed after the date of this
      Agreement.

            

    

     

    
      	
              (b)  

            	
              the
      designation or de-designation of any Petroleum Assets as Borrowing Base
      Assets; and

            

    

     

    
      	
              (c)  

            	
              the
      amount payable by the Borrower under paragraph (a) of Clause 18.1 in
      connection with the negotiation, preparation, printing and execution of
      (i) this Agreement and (ii) any other document relating thereto which is,
      or to be, executed on or before the date of the first Utilisation Date
      shall be paid on or before the first Utilisation
  Date.

            

    

     

    
      	
              18.2  

            	
              Amendment
      costs

            

    

     

    If (a) an
Obligor requests an amendment, waiver or consent or (b) an amendment is required
pursuant to Clause 29.9 (Change of currency), the
Borrower shall, within three Business Days of demand, reimburse each of the
Agent and the Security Trustee for the amount of all costs and expenses
(including, but not limited to, legal fees) reasonably incurred by the Agent and
the Security Trustee (and in the case of the Security Trustee, by any Receiver
or Delegate) in responding to, evaluating, negotiating or complying with that
request or requirement.

     

    
      
        
          
            	
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              18.3  

            	
              Security
      Trustee’s ongoing costs

            

    

     

    
      	
              (a)  

            	
              In
      the event of (i) the occurrence of a Default or (ii) the Security Trustee
      considering it necessary or expedient or (iii) the Security Trustee being
      requested by an Obligor or the Majority Lenders to undertake duties which
      the Security Trustee and the Borrower agree to be of an exceptional nature
      and/or outside the scope of the normal duties of the Security Trustee
      under the Finance Documents, the Borrower shall pay to the Security
      Trustee any additional remuneration that may be agreed between
      them.

            

    

     

    
      	
              (b)  

            	
              If
      the Security Trustee and the Borrower fail to agree upon the nature of the
      duties or upon any additional remuneration, that dispute shall be
      determined by an investment bank (acting as an expert and not as an
      arbitrator) selected by the Security Trustee and approved by the Borrower
      or, failing approval, nominated (on the application of the Security
      Trustee) by the President for the time being of the Law Society of England
      and Wales (the costs of the nomination and of the investment bank being
      payable by the Borrower) and the determination of any investment bank
      shall be final and binding upon the parties to this
    Agreement.

            

    

     

    
      	
              18.4  

            	
              Enforcement
      and preservation costs

            

    

     

    The
Borrower shall, within three Business Days of demand, pay to each Secured Party
and the Mandated Lead Arrangers the amount of all costs and expenses (including,
but not limited to, legal fees) incurred by that Secured Party and the Mandated
Lead Arrangers in connection with the enforcement of, or the preservation of any
rights under, any Finance Document and the Transaction Security and any
proceedings instituted by or against the Security Trustee as a consequence of
taking or holding the Transaction Security or enforcing these
rights.

     

    
      
        
          
            	
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    SECTION
9

     

    GUARANTEE

     

    
      	
              19.  

            	
              GUARANTEE
      AND INDEMNITY

            

    

     

    
      	
              19.1  

            	
              Guarantee
      and indemnity

            

    

     

    Each
Guarantor irrevocably and unconditionally jointly and severally:

     

    
      	
              (a)  

            	
              guarantees
      to each Finance Party punctual performance by the Borrower of all the
      Borrower’s obligations under the Finance
  Documents;

            

    

     

    
      	
              (b)  

            	
              undertakes
      with each Finance Party that whenever the Borrower does not pay any amount
      when due under or in connection with any Finance Document, the Guarantors
      shall immediately on demand pay that amount as if it was the principal
      obligor; and

            

    

     

    
      	
              (c)  

            	
              agrees
      with each Finance Party that if any obligation guaranteed by it is or
      becomes unenforceable, invalid or illegal it will, as an independent and
      primary obligation, indemnify that Finance Party immediately on demand
      against any cost, loss or liability it incurs as a result of the Borrower
      not paying any amount which would, but for such unenforceability,
      invalidity or illegality, have been payable by it under any Finance
      Document on the date when it would have been due.  The amount
      payable by a Guarantor under this indemnity will not exceed the amount it
      would have had to pay under this Clause 19 if the amount claimed had been
      recoverable on the basis of a
guarantee.

            

    

     

    
      	
              19.2  

            	
              Continuing
      guarantee

            

    

     

    This
guarantee is a continuing guarantee and will extend to the ultimate balance of
sums payable by any Obligor under the Finance Documents, regardless of any
intermediate payment or discharge in whole or in part.

     

    
      	
              19.3  

            	
              Reinstatement

            

    

     

    If any
discharge, release or arrangement (whether in respect of the obligations of any
Obligor or any security for those obligations or otherwise) is made by a Finance
Party in whole or in part on the basis of any payment, security or other
disposition which is avoided or must be restored in insolvency, liquidation,
administration or otherwise, without limitation, then the liability each
Guarantor under this Clause 19 will continue or be reinstated as if the
discharge, release or arrangement had not occurred.

     

    
      	
              19.4  

            	
              Waiver
      of defences

            

    

     

    The
obligations of each Guarantor under this Clause 19 will not be affected by any
act, omission, matter or thing which, but for this Clause, would reduce, release
or prejudice any of its obligations under this Clause 19 (without limitation and
whether or not known to it or any Finance Party) including:

     

    
      
        
          
            	
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              (a)  

            	
              any
      time, waiver or consent granted to, or composition with, any Obligor or
      other person;

            

    

     

    
      	
              (b)  

            	
              the
      release of any other Obligor or any other person under the terms of any
      composition or arrangement with any creditor of any member of the
      Group;

            

    

     

    
      	
              (c)  

            	
              the
      taking, variation, compromise, exchange, renewal or release of, or refusal
      or neglect to perfect, take up or enforce, any rights against, or security
      over assets of, any Obligor or other person or any non-presentation or
      non-observance of any formality or other requirement in respect of any
      instrument or any failure to realise the full value of any
      security;

            

    

     

    
      	
              (d)  

            	
              any
      incapacity or lack of power, authority or legal personality of or
      dissolution or change in the members or status of an Obligor or any other
      person;

            

    

     

    
      	
              (e)  

            	
              any
      amendment, novation, supplement, extension (whether of maturity or
      otherwise) or restatement (in each case however fundamental and of
      whatsoever nature, and whether or not more onerous) or replacement of a
      Finance Document or any other document or
  security;

            

    

     

    
      	
              (f)  

            	
              any
      unenforceability, illegality or invalidity of any obligation of any person
      under any Finance Document or any other document or security;
      or

            

    

     

    
      	
              (g)  

            	
              any
      insolvency or similar proceedings.

            

    

     

    
      	
              19.5  

            	
              Guarantor
      Intent

            

    

     

    Without
prejudice to the generality of Clause 19.4 (Waiver of defences), each
Guarantor expressly confirms that it intends that this guarantee shall extend
from time to time to any (however fundamental and of whatsoever nature and
whether or not more onerous) variation, increase, extension or addition of or to
any of the Finance Documents and/or any facility or amount made available under
any of the Finance Documents for the purposes of or in connection with any of
the following:  acquisitions of any nature; increasing working
capital; enabling investor distributions to be made; carrying out
restructurings; refinancing existing facilities; refinancing any other
indebtedness; making facilities available to new borrowers; any other variation
or extension of the purposes for which any such facility or amount might be made
available from time to time; and any fees, costs and/or expenses associated with
any of the foregoing.

     

    
      	
              19.6  

            	
              Immediate
      recourse

            

    

     

    Each
Guarantor waives any right it may have of first requiring any Finance Party (or
any trustee or agent on its behalf) to proceed against or enforce any other
rights or security or claim payment from any person before claiming from that
Guarantor under this Clause 19.  This waiver applies irrespective of
any law or any provision of a Finance Document to the contrary.

     

    
      
        
          
            	
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              19.7  

            	
              Appropriations

            

    

     

    Until all
amounts which may be or become payable by the Obligors under or in connection
with the Finance Documents have been irrevocably paid in full, each Finance
Party (or any trustee or agent on its behalf) may:

     

    
      	
              (a)  

            	
              refrain
      from applying or enforcing any other moneys, security or rights held or
      received by that Finance Party (or any trustee or agent on its behalf) in
      respect of those amounts, or apply and enforce the same in such manner and
      order as it sees fit (whether against those amounts or otherwise) and no
      Guarantor shall be entitled to the benefit of the same;
  and

            

    

     

    
      	
              (b)  

            	
              hold
      in an interest-bearing suspense account any moneys received from any
      Guarantor or on account of any Guarantor’s liability under this Clause
      19.

            

    

     

    
      	
              19.8  

            	
              Deferral
      of Guarantor’s rights

            

    

     

    Until all
amounts which may be or become payable by the Obligors under or in connection
with the Finance Documents have been irrevocably paid in full and unless the
Agent otherwise directs, no Guarantor will exercise any rights which it may have
by reason of performance by it of its obligations under the Finance Documents or
by reason of any amount being payable, or liability arising, under this Clause
19:

     

    
      	
              (a)  

            	
              to
      be indemnified by an Obligor;

            

    

     

    
      	
              (b)  

            	
              to
      claim any contribution from any other guarantor of any Obligor’s
      obligations under the Finance
Documents;

            

    

     

    
      	
              (c)  

            	
              to
      take the benefit (in whole or in part and whether by way of subrogation or
      otherwise) of any rights of the Finance Parties under the Finance
      Documents or of any other guarantee or security taken pursuant to, or in
      connection with, the Finance Documents by any Finance
    Party;

            

    

     

    
      	
              (d)  

            	
              to
      bring legal or other proceedings for an order requiring any Obligor to
      make any payment, or perform any obligation, in respect of which any
      Guarantor has given a guarantee, undertaking or indemnity under Clause
      19.1 (Guarantee and
      indemnity);

            

    

     

    
      	
              (e)  

            	
              to
      exercise any right of set-off against any Obligor;
  and/or

            

    

     

    
      	
              (f)  

            	
              to
      claim or prove as a creditor of any Obligor in competition with any
      Finance Party.

            

    

     

    If the
Guarantor receives any benefit, payment or distribution in relation to such
rights it shall hold that benefit, payment or distribution to the extent
necessary to enable all amounts which may be or become payable to the Finance
Parties by the Borrower under or in connection with the Finance Documents to be
repaid in full on trust for the Finance Parties and shall promptly pay or
transfer the same to the Agent or as the Agent may direct for application in
accordance with Clause 29 (Payment
mechanics).

     

    

      
        
          
            
              	
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              19.9  

            	
              Additional
      security

            

    

     

    This
guarantee is in addition to and is not in any way prejudiced by any other
guarantee or security now or subsequently held by any Finance
Party.

     

    
      	
              19.10  

            	
              Limitation

            

    

     

    Notwithstanding
any other provision of this Clause 19 (Guarantee and Indemnity) the
guarantee, indemnity and other obligations of any Dutch Obligor expressed to be
assumed in this Clause 19 (Guarantee and Indemnity)
shall be deemed not to be assumed by such Dutch Obligor to the extent that the
same would constitute unlawful financial assistance within the meaning of
Article 2:207c or 2:98c Dutch Civil Code or any other applicable financial
assistance rules under any relevant jurisdiction (the “Prohibition”) and the
provisions of this Agreement and the other Finance Documents shall be construed
accordingly.  For the avoidance of doubt it is expressly acknowledged
that the relevant Dutch Obligors will continue to guarantee all such obligations
which, if included, do not constitute a violation of the
Prohibition.

     

    
      
        
          
            	
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    SECTION
10

     

    REPRESENTATIONS,
UNDERTAKINGS AND EVENTS OF DEFAULT

     

    
      	
              20.  

            	
              REPRESENTATIONS

            

    

     

    
      	
              20.1  

            	
              Application

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor makes the representations and warranties set out in this Clause 20
      to each Finance Party on the date of this
  Agreement.

            

    

     

    
      	
              (b)  

            	
              Each
      Obligor makes the representations and warranties set out in Clause 20.11
      (Security
      matters) on the date on which each Security Document is entered
      into.

            

    

     

    
      	
              (c)  

            	
              Save
      in respect of Clause 20.9(c) (Compliance with Environmental
      and Mining Laws), Clause 20.10 (Compliance with laws)
      and Clause 20.23 (Group
      Liquidity Test), any reference to ‘Group’ in each of the
      representations and warranties set out in this Clause excludes reference
      to FX Drilling Company, Inc. and FX Producing Company,
  Inc.

            

    

     

    
      	
              20.2  

            	
              Non-conflict
      with other obligations

            

    

     

    The entry
into and performance by it of, or any member of the Group of, and the
transactions contemplated by, the Transaction Documents to which it, or such
member of the Group, is a party do not and will not conflict with:

     

    
      	
              (a)  

            	
              any
      law or regulation applicable to it or any member of the
    Group;

            

    

     

    
      	
              (b)  

            	
              its
      or any of its Subsidiaries’ constitutional documents or the constitutional
      documents of any member of the Group;
or

            

    

     

    
      	
              (c)  

            	
              any
      Transaction Document or any other agreement or instrument binding upon (i)
      it or any of its assets or (ii) any member of the Group or any assets of
      any member of the Group.

            

    

     

    
      	
              20.3  

            	
              Status

            

    

     

    
      	
              (a)  

            	
              It
      is a corporation, duly incorporated and validly existing under the law of
      its jurisdiction of incorporation or, in the case of FX Energy Netherlands
      Partnership C.V., duly organised or registered and validly existing under
      the laws of the Netherlands.

            

    

     

    
      	
              (b)  

            	
              It
      and each of its Subsidiaries has the power to own its assets and carry on
      its business as it is being
conducted.

            

    

     

    
      
        
          
            	
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              20.4  

            	
              Power
      and authority

            

    

     

    It and
each member of the Group has the power to enter into, perform and deliver, and
has taken all necessary action to authorise its entry into, performance and
delivery of, the Transaction Documents to which it is a party and the
transactions contemplated by those Transaction Documents.

     

    
      	
              20.5  

            	
              Binding
      obligations

            

    

     

    The
obligations expressed to be assumed by it, and each member of the Group, in each
Transaction Document are, subject to any Legal Reservations, legal, valid,
binding and enforceable obligations and are in full force and
effect.

     

    
      	
              20.6  

            	
              Pari
      passu ranking

            

    

     

    Its
indebtedness and payment obligations and the indebtedness and payment
obligations of each member of the Group under the Finance Documents rank at
least pari passu with
the claims of all its, or as the case may be, that Group member’s other
unsecured and unsubordinated creditors, except for obligations mandatorily
preferred by law applying to companies generally.

     

    
      	
              20.7  

            	
              No
      proceedings pending or threatened

            

    

     

    Save in
respect of the Disclosed Litigation, no litigation, arbitration or
administrative proceedings of or before any court, arbitral body or agency
which, if adversely determined, might reasonably be expected to have a Material
Adverse Effect has (to the best of its knowledge and belief) been started or
threatened against any member of the Group (or against the directors of any
member of the Group).

     

    
      	
              20.8  

            	
              Financial
      statements

            

    

     

    
      	
              (a)  

            	
              Its
      latest audited/unaudited financial statements were prepared in accordance
      with GAAP/IFRS consistently
applied.

            

    

     

    
      	
              (b)  

            	
              Its
      latest audited/unaudited financial statements fairly represent its
      financial condition and operations (consolidated in the case of the
      Parent) during the relevant financial
year.

            

    

     

    
      	
              (c)  

            	
              There
      has been no material adverse change in its business or financial condition
      (or the business or consolidated financial condition of the Group, in the
      case of the Parent) since the date on which its latest audited/unaudited
      financial statements were first provided pursuant to Clause 21.2 (Financial
      statements).

            

    

     

    
      
        
          
            	
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              20.9  

            	
              Compliance
      with Environmental and Mining Laws

            

    

     

    
      	
              (a)  

            	
              All
      Environmental and Mining Licences required in connection with the
      Borrowing Base Assets and/or their exploitation have been obtained and it
      and each member of the Group and the operator of each Borrowing Base Asset
      have at all times complied with those Environmental and Mining Licences
      and all applicable Environmental Decisions and all other applicable
      Environmental and Mining Laws.

            

    

     

    
      	
              (b)  

            	
              There
      is no material environmental contamination on any site connected with any
      Borrowing Base Asset.

            

    

     

    
      	
              (c)  

            	
              There
      are no Environmental and Mining Claims current, or to its knowledge,
      pending or threatened, against or connected with it, any member of the
      Group or any Borrowing Base Asset which have or may have a Material
      Adverse Effect.

            

    

     

    
      	
              (d)  

            	
              So
      far as each Obligor is aware, PGNiG has not received any notice of
      withdrawal or intention to withdraw any applicable Environmental and
      Mining Licence granted to it.

            

    

     

    
      	
              20.10  

            	
              Compliance
      with Laws

            

    

     

    Members
of the Group are in material compliance with all laws and regulations applicable
to them.

     

    
      	
              20.11  

            	
              Security
      matters

            

    

     

    
      	
              (a)  

            	
              No
      Security (or agreement to create the same) exists over any of its assets
      or the assets of any other member of the Group, in each case, save for any
      Permitted Security.

            

    

     

    
      	
              (b)  

            	
              Subject
      to (i) any Legal Reservation or (ii) any required registration of any
      Security Documents, each Security Document to which it, or any member of
      the Group, is a party:

            

    

     

    
      	
              (i)  

            	
              confers
      the Security of the type it purports to create over the assets over which
      the Security is purported to be given by that Security Document and each
      such Security is (subject to any Permitted Security which may be prior
      ranking) first ranking; and

            

    

     

    
      	
              (ii)  

            	
              is
      valid and enforceable against (A) it or, as the case may be, that member
      of the Group, and (B) its Insolvency Officers and its creditors or, as the
      case may be, the Insolvency Officers and creditors of that member of the
      Group; and

            

    

     

    
      	
              (iii)  

            	
              is
      not capable of being avoided or set aside, whether in the winding up,
      administration or dissolution or otherwise of it or any of its assets or,
      as the case may be, that member of the Group or any of that Group member’s
      assets.

            

    

     

    
      
        
          
            	
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              (c)  

            	
              Each
      member of the Group that has entered into any Security Document for the
      purposes of granting Security over all or any of its assets is the legal
      and beneficial owner of all of the assets (the “charged assets”)
      secured, or purported to be secured, under such Security Document free
      from any Security (other than the relevant Security created pursuant to
      that Security Document or any Permitted Security).  Where the
      charged assets comprise shares held by that member of the Group in another
      member of the Group, such charged assets are free from any restrictions as
      to transfer or registration and are not subject to any calls or other
      liability to pay money.

            

    

     

    
      	
              (d)  

            	
              With
      respect to the Borrowing Base Assets the Borrower holds the following
      interests:

            

    

     

    
      	
              
                Initial
      Borrowing Base Asset

              

            	
              
                Borrower’s
      Interest

              

            	
              
                Other
      Interests

              

            
	
              Zaniemysl
      Field

            	
              24.5%

            	
              51%

            
	 
      	 
      	
              24.5%

            
	
              Roszków
      Field

            	
              49%

            	
              51%

            
	
              Kromolice
      Field

            	
              49%

            	
              51%

            
	
              Kromolice
      S Field

            	
              49%

            	
              51%

            
	
              Środa
      Wielkopolska Field

            	
              49%

            	
              51%

            
	 
      	 
      	 
      

    

    
      	
              20.12  

            	
              Validity
      and admissibility in evidence

            

    

     

    All
Required Authorisations required or desirable:

     

    
      	
              (a)  

            	
              to
      enable it lawfully to enter into, exercise its rights and comply with its
      obligations in the Transaction Documents to which it is a party;
      and

            

    

     

    
      	
              (b)  

            	
              to
      make the Transaction Documents to which it is a party admissible in
      evidence in each Relevant
Jurisdiction,

            

    

     

    have been
obtained or effected and are in full force and effect and no steps have been
taken for the revocation, variation or refusal of any Required Authorisation
which has been granted.

     

    
      	
              20.13  

            	
              Deduction
      of Tax

            

    

     

    It is not
required to make any deduction for or on account of Tax from any payment it may
make under any Finance Document to a Lender which is a Qualifying
Lender.

     

    
      	
              20.14  

            	
              No
      default

            

    

     

    
      	
              (a)  

            	
              No
      Default or Event of Default is continuing or might reasonably be expected
      to result from the making of any
Utilisation.

            

    

     

    
      
        
          
            	
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              (b)  

            	
              No
      other event or circumstance is outstanding which constitutes a default
      under any other agreement or instrument which is binding on it or any of
      its Subsidiaries or to which its (or any of its Subsidiaries’) assets are
      subject which might have a Material Adverse
  Effect.

            

    

     

    
      	
              20.15  

            	
              Governing
      law and enforcement

            

    

     

    
      	
              (a)  

            	
              The
      choice of governing law of each of the Finance Documents to which it, or
      any member of the Group, is a party will, subject to any Legal
      Reservations, be recognised and enforced in its or, as the case may be,
      that group member’s Relevant
Jurisdiction.

            

    

     

    
      	
              (b)  

            	
              Any
      judgment obtained in England in relation to a Finance Document will,
      subject to any Legal Reservations, be recognised and enforced in each
      Relevant Jurisdiction.

            

    

     

    
      	
              20.16  

            	
              No
      filing or stamp taxes

            

    

     

    Subject
to (i) due registration of the Polish registered pledges (ii) notarial fees in
respect of any Security Documents and (iii) stamp duty on any power of attorney
presented to Polish authorities as well as common or administrative courts in
Poland, under the law of its jurisdiction of incorporation or the jurisdiction
of incorporation or organisation of any member of the Group it is not necessary
that the Finance Documents be filed, recorded or enrolled with any court or
other authority in that jurisdiction or that any stamp, registration or similar
tax be paid on or in relation to the Finance Documents or the transactions
contemplated by the Finance Documents.

     

    
      	
              20.17  

            	
              Borrowing
      Base Assets and Field Documents

            

    

     

    
      	
              (a)  

            	
              The
      Field Documents are in full force and effect in all material respects and
      contain no restrictions, covenants and conditions that would, in any
      material respect, adversely affect the use, ownership, possession or
      exploitation of any Borrowing Base Asset in the manner contemplated by the
      Transaction Documents, the then current Projection, and each then current
      Budget.  A complete list of Fields Documents existing on the
      date of the execution of this Agreement is set out in Schedule 12 (Schedule of Field
      Documents) hereto.

            

    

     

    
      	
              (b)  

            	
              No
      member of the Group that is a party to a Field Document is in material
      default under any Field Document and, to the best of its knowledge and
      belief, no other party to a Field Document is in material default under
      any Field Document.

            

    

     

    
      	
              (c)  

            	
              It,
      or a member of the Group, owns, or has sufficient access to and the right
      to use, all assets necessary for the exploitation of each Borrowing Base
      Asset as contemplated by the Transaction Documents, the then current
      Projection, and each then current
Budget.

            

    

     

    
      
        
          
            	
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              (d)  

            	
              The
      Borrower and other members of the Group have rights to all assets, which
      are required in order to allow the Borrower to own, operate (to the extent
      it is the operator in relation to such Borrowing Base Asset) and exploit
      the Borrowing Base Assets as contemplated in the Projections and Technical
      Assumptions.

            

    

     

    
      	
              (e)  

            	
              Additionally,
      the Borrower is the absolute legal and beneficial owner (or, subject to
      paragraph (d) of Clause 20.11, co-owner and/or co-venturer together with
      other parties holding interests with respect to the Borrowing Base Assets)
      of each Borrowing Base Asset free from any Security or other interest of
      any kind other than (i) the Security under the Security Documents, (ii)
      the Security permitted under Clause 22.13 (Negative pledge)
      (including, for the avoidance of doubt, Permitted Security) and (iii) the
      interests (if any) of any co-venturers under the Field Documents relating
      to that Borrowing Base Asset.

            

    

     

    
      	
              (f)  

            	
              No
      member of the Group is under any obligation to create any Security over
      any Borrowing Base Asset except by virtue of any Security Document or as
      permitted under Clause 22.13 (Negative
      pledge).

            

    

     

    
      	
              (g)  

            	
              Each
      copy of a Field Document delivered to the Agent by it is, at the time it
      is delivered, a correct and complete copy of the relevant document as in
      force at that time.

            

    

     

    
      	
              20.18  

            	
              Ownership

            

    

     

    
      	
              (a)  

            	
              As
      at the date of this Agreement, the only member of the Group that holds any
      interests in any Borrowing Base Assets is the
  Borrower.

            

    

     

    
      	
              (b)  

            	
              As
      at the date of this Agreement, the ownership structure of the Group is as
      set out in the Group Structure
Chart.

            

    

     

    
      	
              (c)  

            	
              Each
      member of the Group that holds any interest in any Borrowing Base Assets
      is a Relevant Obligor.

            

    

     

    
      	
              20.19  

            	
              Insurances

            

    

     

    All
insurances which are at any time required to be maintained or effected by it, or
any member of the Group, pursuant to the Finance Documents are in full force and
effect at that time, and to the best of its knowledge and belief, no event or
circumstance has occurred, nor has there been any omission to disclose a fact,
which would in either case entitle any insurer under those insurances to avoid
its liability or otherwise reduce its liability.

     

    
      	
              20.20  

            	
              Projections

            

    

     

    
      	
              (a)  

            	
              All
      information provided by, or on behalf of, it or any member of the Group
      for the purposes of preparing the current
  Projection:

            

    

     

    
      	
              (i)  

            	
              in
      the case of any factual information, was true in all material respects as
      at the date it was provided; and

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              have
      been prepared and provided in good faith and with due care on the basis of
      recent historical information and assumptions it considers to be
      reasonable.

            

    

     

    
      	
              (b)  

            	
              The
      current Projection:

            

    

     

    
      	
              (i)  

            	
              is
      based on reasonable assumptions;

            

    

     

    
      	
              (ii)  

            	
              is
      consistent with the provisions of the Transaction Documents in all
      material respects;

            

    

     

    
      	
              (iii)  

            	
              (to
      the extent prepared by any Obligor or other member of the Group) has been
      prepared in good faith and with due care;
and

            

    

     

    
      	
              (iv)  

            	
              fairly
      represents the expectations of the members of the
  Group,

            

    

     

    except,
in the case of paragraph (i) and (iv) above, to the extent the assumptions and
expectations of the members of the Group differ from those of the Majority
Lenders.

     

    
      	
              20.21  

            	
              No
      misleading information

            

    

     

    
      	
              (a)  

            	
              Any
      factual information provided by any member of the Group for the purposes
      of the Information Memorandum was true and accurate in all material
      respects as at the date it was provided or as at the date (if any) at
      which it is stated.

            

    

     

    
      	
              (b)  

            	
              The
      financial projections contained in the Information Memorandum have been
      prepared on the basis of recent historical information and on the basis of
      reasonable assumptions.

            

    

     

    
      	
              (c)  

            	
              Nothing
      has occurred or been omitted from the Information Memorandum and no
      information has been given or withheld that results in the information
      contained in the Information Memorandum being untrue or misleading in any
      material respect.

            

    

     

    
      	
              (d)  

            	
              All
      written information (other than the Information Memorandum) supplied by
      any member of the Group is true, complete and accurate in all material
      respects as at the date it was given and is not misleading in any
      respect.

            

    

     

    
      	
              20.22  

            	
              No
      Winding Up

            

    

     

    No member
of the Group has taken any corporate action nor have any other steps been taken
or legal proceedings been started or (to the best of its knowledge and belief
after making due enquiry) threatened against it for its bankruptcy, winding–up,
dissolution, administration or re–organisation or for the appointment of a
receiver, administrator, administrative receiver, trustee, bankruptcy trustee or
similar officer of it or of any or all of its assets or revenues.

     

    
      
        
          
            	
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              20.23  

            	
              Group
      Liquidity Test

            

    

     

    The
Monthly Cash Flow Projection most recently delivered to the Agent:

     

    
      	
              (a)  

            	
              is
      based on reasonable assumptions;

            

    

     

    
      	
              (b)  

            	
              has
      been prepared in good faith and with due
care;

            

    

     

    
      	
              (c)  

            	
              fairly
      represents the expectations of the Parent;
and

            

    

     

    
      	
              (d)  

            	
              includes
      a forecast of all of the outgoings, expenditures and liabilities that the
      members of the Group are expected to incur in the relevant forecast period
      for such Monthly Cash Flow
Projection.

            

    

     

    
      	
              20.24  

            	
              Taxation

            

    

     

    
      	
              (a)  

            	
              Each
      member of the Group has duly and punctually paid and discharged all Taxes
      imposed upon it or its assets within the time period allowed without
      incurring penalties (except to the extent that (i) payment is being
      contested in good faith, (ii) it has maintained adequate reserves for
      those Taxes and (iii) payment can be lawfully
  withheld).

            

    

     

    
      	
              (b)  

            	
              No
      member of the Group is materially overdue in the filing of any Tax
      returns.

            

    

     

    
      	
              (c)  

            	
              No
      claims are being or are reasonably likely to be asserted against it with
      respect to Taxes.

            

    

     

    
      	
              20.25  

            	
              Dutch
      Tax Status

            

    

     

    No notice
under Article 36 Tax Collection Act (Invorderingswet 1990) has
been given by any member of the Group.

     

    
      	
              20.26  

            	
              No
      Immunity

            

    

     

    In any
proceedings taken in a Relevant Jurisdiction in relation to the Finance
Documents, it will not be entitled to claim for itself or any of its assets
immunity from suit, execution, attachment or other legal process.

     

    
      	
              20.27  

            	
              Private
      and commercial acts

            

    

     

    Its
execution of the Finance Documents constitutes, and its exercise of its rights
and performance of its obligations under this Agreement will constitute, private
and commercial acts done and performed for private and commercial
purposes.

     

    
      	
              20.28  

            	
              Ranking

            

    

     

    As from
the Effective Date specified in each of the Letters of Release, the Transaction
Security will have first ranking priority and will not be subject to any prior
ranking or pari passu
ranking Security.

     

    
      
        
          
            	
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              20.29  

            	
              Good
      title to assets

            

    

     

    It has
good, valid and marketable title to, or valid leases or licences of, and all
appropriate Authorisations to use, the assets necessary to carry on its business
as presently conducted.

     

    
      	
              20.30  

            	
              Offtake

            

    

     

    The
Borrower has not entered into any agreement for the disposal of any Petroleum
produced from any Borrowing Base Asset except to PGNiG.

     

    
      	
              20.31  

            	
              Repetition

            

    

     

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

     

    
      	
              (a)  

            	
              the
      date of each Utilisation Request and the first day of each Interest
      Period;

            

    

     

    
      	
              (b)  

            	
              in
      the case of an Additional Guarantor, the day on which it becomes (or it is
      proposed that it becomes) an Additional Guarantor;
  and

            

    

     

    
      	
              (c)  

            	
              each
      Recalculation Date.

            

    

     

    
      	
              21.  

            	
              INFORMATION
      UNDERTAKINGS

            

    

     

    
      	
              21.1  

            	
              Application

            

    

     

    
      	
              (a)  

            	
              The
      undertakings in this Clause 21 remain in force from the date of this
      Agreement for so long as any amount is outstanding under the Finance
      Documents or any Commitment is in
force.

            

    

     

    
      	
              (b)  

            	
              Any
      projection, report or other document provided to the Agent pursuant to
      Clauses 21.2 (Financial
      statements) 21.4 (Operations Report),
      21.5 (Group Liquidity
      Test) 21.6 (Compliance
      Certificate), 21.7 (Information:
      Miscellaneous), 21.8 (Information: Borrowing Base
      Assets), 21.9 (Information: Projections and
      Reserve Reports), 21.10 (Budgets) and
      21.11(Notification of
      Default) , shall following receipt thereof in final form be
      provided by the Agent to the
Lenders.

            

    

     

    
      	
              21.2  

            	
              Financial
      statements

            

    

     

    The
Parent shall supply, or shall procure the Borrower to supply to the
Agent:

     

    
      	
              (a)  

            	
              as
      soon as the same become available, but in any event within 90 days after
      the end of each of their financial
years:

            

    

     

    
      	
              (i)  

            	
              the
      audited financial statements of the Borrower for that financial
      year;

            

    

     

    
      	
              (ii)  

            	
              the
      audited consolidated financial statements of the Parent for that financial
      year; and

            

    

     

    
      
        
          
            	
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              (iii)  

            	
              the
      annual unaudited statements of FX Drilling Company, Inc. and FX Producing
      Company, Inc.

            

    

     

    
      	
              (b)  

            	
              as
      soon as the same become available, but in any event within 270 days after
      the end of each of their financial years the annual financial statements
      of FX Energy Netherlands Partnership C.V. and FX Energy Netherlands B.V.
      for that financial year; and

            

    

     

    
      	
              (c)  

            	
              as
      soon as the same become available, but in any event within 90 days after
      the end of each quarter the Parent’s unaudited consolidated quarterly
      management accounts for that
period.

            

    

     

    
      	
              21.3  

            	
              Requirements
      as to financial statements

            

    

     

    
      	
              (a)  

            	
              The
      Parent shall provide with its financial statements delivered pursuant to
      Clause 21.2 (Financial
      statements):

            

    

     

    
      	
              (i)  

            	
              a
      certificate by a director of the Parent certifying such financial
      statements as fairly representing its financial condition as at the date
      at which those financial statements were drawn up;
  or

            

    

     

    
      	
              (ii)  

            	
              a
      copy of the certifications by each of the chief executive officer and the
      chief financial officer of the Parent pursuant to 18 U.S.C. section 1350,
      as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
      and/or Rule 13a-14 of the Securities Exchange Act of
  1934.

            

    

     

    
      	
              (b)  

            	
              The
      Borrower shall procure that each set of financial statements delivered
      pursuant to Clause 21.2 (Financial statements)
      is prepared using GAAP/IFRS.

            

    

     

    Any
reference in this Agreement to “those financial statements” shall be construed
as a reference to those financial statements as adjusted to reflect the basis
upon which the Original Financial Statements were prepared.

     

    
      	
              21.4  

            	
              Operations
      Report

            

    

     

    The
Borrower must provide to the Agent within 15 calendar days of the last Business
Day of every month (and in respect of such month), updates, in a form and
substance satisfactory to the Agent in respect of each Borrowing Base Asset to
include all material technical and other information in relation to each of the
Borrowing Base Assets, including (for the avoidance of doubt and without
limitation):

     

    
      	
              (a)  

            	
              information
      in respect of any delay in achieving first gas/oil in respect of each
      Borrowing Base Asset for the month in
question;

            

    

     

    
      	
              (b)  

            	
              the
      production performance and Petroleum sales figures in respect of each
      Borrowing Base Asset for the month in
question;

            

    

     

    
      	
              (c)  

            	
              information
      in respect of all maintenance work and operational activities carried out
      in connection with each Borrowing Base Asset during the month in question;
      and

            

    

     

    
      
        
          
            	
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              (d)  

            	
              all
      forward activities anticipated in respect of the Borrowing Base Assets
      during the forthcoming calendar
months.

            

    

     

    
      	
              21.5  

            	
              Group
      Liquidity Test

            

    

     

    The
Parent shall ensure that:

     

    
      	
              (a)  

            	
              a
      Monthly Cash Flow Projection is prepared confirming that sufficient funds
      (cash flow, debt and equity) are available to meet all of the Group’s
      obligations as and when they fall
due;

            

    

     

    
      	
              (b)  

            	
              each
      such Monthly Cash Flow Projection is delivered to the Agent by the date
      falling five Business Days after the relevant date as of which such
      Monthly Cash Flow Projection is required to be
  prepared;

            

    

     

    
      	
              (c)  

            	
              it
      (i) promptly considers and addresses any amendments that the Lenders
      suggest to the assumptions used for each such Monthly Cash Flow
      Projection  (ii) shall revise the relevant Monthly Cash Flow
      Projection in accordance with such amendments and (iii) shall deliver to
      the Agent such revised Monthly Cash Flow Projection;
  and

            

    

     

    
      	
              (d)  

            	
              if
      it becomes aware of any event, circumstance or information which results
      in any assumption, data or item of information included in the Monthly
      Cash Flow Projection most recently delivered to the Agent becoming
      inaccurate or otherwise out-of-date, in each case, in any material
      respect, it will promptly notify the Agent of the
  same.

            

    

     

    
      	
              21.6  

            	
              Compliance
      Certificate

            

    

     

    
      	
              (a)  

            	
              Within
      10 Business Days after the end of each quarter, the Parent shall supply to
      the Agent a Compliance Certificate setting out (in reasonable detail)
      computations as to compliance with Clause 21.5 (Group Liquidity Test)
      as of the end of that quarter.

            

    

     

    
      	
              (b)  

            	
              Each
      Compliance Certificate shall be signed by one director of the
      Parent.

            

    

     

    
      	
              (c)  

            	
              Any
      material change to the information contained in the most recent Compliance
      Certificate shall be notified promptly to the
  Agent.

            

    

     

    
      	
              21.7  

            	
              Information:  miscellaneous

            

    

     

    The
Borrower shall supply to the Agent:

     

    
      	
              (a)  

            	
              all
      documents despatched by the Borrower to its shareholders (or any class of
      them) or its creditors generally at the same time as they are
      dispatched;

            

    

     

    
      	
              (b)  

            	
              copies
      of all documents filed publicly by, or on behalf of, the Guarantors with
      the relevant stock exchange at the same time as they are filed (where for
      these purposes, “relevant stock exchange” means the Nasdaq Global
      Market);

            

    

     

    
      
        
          
            	
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              (c)  

            	
              promptly
      upon becoming aware of them, the details of any litigation, arbitration or
      administrative proceedings which are current, threatened or pending
      against any member of the Group (or against the directors of any member of
      the Group), and which might, if adversely determined, have a Material
      Adverse Effect;

            

    

     

    
      	
              (d)  

            	
              promptly
      upon becoming aware of the same, details of any event or circumstance or
      any new information which results in any material information previously
      provided to the Agent by it or its advisors being misleading or inaccurate
      in any material respect;

            

    

     

    
      	
              (e)  

            	
              information
      regarding any decisions concerning registration of (or refusal to
      register) any Security required to be registered in the applicable
      registers, promptly after such
information;

            

    

     

    
      	
              (f)  

            	
              promptly
      upon becoming aware of the same, any notice or information relating to the
      withdrawal of, or intention to withdraw, any applicable Environmental and
      Mining Licence granted to PGNiG;

            

    

     

    
      	
              (g)  

            	
              promptly
      upon becoming aware of the same, details of any payment or other material
      default by PGNiG in the performance of its obligations towards the
      Borrower under any Field Document;
and

            

    

     

    

     

    
      	
              (h)  

            	
              promptly,
      such further information regarding the financial condition, business and
      operations of any member of the Group as any Finance Party (through the
      Agent) may reasonably request.

            

    

     

    
      	
              21.8  

            	
              Information:  Borrowing
      Base Assets

            

    

     

    The
Obligors must supply to the Agent:

     

    
      	
              (a)  

            	
              promptly
      upon receipt by it of the same, a copy of any notice of default (howsoever
      called) served upon it under any Field
Document;

            

    

     

    
      	
              (b)  

            	
              promptly
      upon becoming aware of the same, the details of any claims and/or
      proceedings which are current, threatened or pending in relation to any
      Borrowing Base Asset which, if adversely determined, would have a Material
      Adverse Effect;

            

    

     

    
      	
              (c)  

            	
              promptly
      upon becoming aware of the same, the details of any event or circumstance
      which has resulted in the production, recovery or transportation of
      Petroleum with respect to any Borrowing Base Asset being suspended or
      interrupted for a period of 20 days or more (excluding scheduled
      shutdowns);

            

    

     

    
      	
              (d)  

            	
              promptly
      upon becoming aware of the same, details of any potential or actual
      warranty claim or any other material dispute under the then current Field
      Documents;

            

    

     

    
      
        
          
            	
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              (e)  

            	
              promptly
      upon becoming aware of the same, details of (i) any incident involving any
      material physical damage to a Borrowing Base Asset and (ii) any proposal
      for reinstatement;

            

    

     

    
      	
              (f)  

            	
              promptly
      upon request by the Agent, a copy of any reports or budgets in respect of
      each Borrowing Base Asset prepared by the operator or operating committee
      thereof;

            

    

     

    
      	
              (g)  

            	
              promptly
      upon becoming aware of the same, any other information relating to a
      Borrowing Base Asset or Obligor that could reasonably be expected to
      change any Assumption in the current Projection (in a material respect) or
      impose any additional material liability on any
  Obligor;

            

    

     

    
      	
              (h)  

            	
              promptly
      upon request by any Lender:

            

    

     

    
      	
              (i)  

            	
              a
      copy of any Field Document and

            

    

     

    
      	
              (ii)  

            	
              such
      information as that Lender may reasonably require in respect of a
      Borrowing Base Asset or a member of the
Group;

            

    

     

    
      	
              (i)  

            	
              promptly
      upon such document being entered into or otherwise executed or issued, a
      copy of any Field Document, copies of which have not previously been
      provided to the Agent;

            

    

     

    
      	
              (j)  

            	
              no
      later than seven days prior to the date on which any member of the Group
      proposes to enter into, execute or file for any new Field Document or make
      a material amendment or request a material amendment to the terms of any
      existing Field Document, a copy of the then current draft of the relevant
      new Field Document that any member of the Group proposes to enter into
      after the date of this Agreement or, as the case may be, details of the
      proposed material amendment;

            

    

     

    
      	
              (k)  

            	
              at
      the same time as the same is submitted, copies of any information provided
      by any member of the Group to, or any application made by any member of
      the Group to, the Applicable Polish Licensing Authority or any other
      governmental agency or body in relation to any Borrowing Base Asset;
      and

            

    

     

    
      	
              (l)  

            	
              promptly
      upon becoming aware of the same, the details of any Unitisation or
      potential Unitisation or any steps that have been, or are being, taken
      with respect to any Unitisation or potential
  Unitisation.

            

    

     

    
      	
              21.9  

            	
              Information:  Projections
      and Reserves Reports

            

    

     

    
      	
              (a)  

            	
              The
      Borrower shall commission, at the expense of the Obligors, the Independent
      Engineer to prepare a Reserves
Report:

            

    

     

    
      	
              (i)  

            	
              on
      an annual basis as of 31 December for the purposes of the Scheduled
      Projections to be adopted in accordance with Clause 6 (Projections) to the
      satisfaction of the Technical Bank;

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              if
      at any time the Borrower makes a request for a Petroleum Asset to be
      designated a Borrowing Base Asset or for a Borrowing Base Asset to cease
      to be so designated;

            

    

     

    
      	
              (iii)  

            	
              if
      any request for an Interim Projection is made pursuant to paragraph
      (a)(ii) of Clause 6.1 (Adoption) by the
      Technical Bank or by the Agent (on behalf of the Majority
      Lenders);

            

    

     

    
      	
              (iv)  

            	
              if
      the Technical Bank so requests following any acquisition of any asset by
      the Borrower or any member of the Group that, in the reasonable opinion of
      the Technical Bank, has a material effect on the risk profile of the
      Group;

            

    

     

    
      	
              (v)  

            	
              if
      at any time the Borrower notifies the Technical Bank that an event has
      happened or a circumstance has arisen that will have a material impact on
      the Loan Life NPV or the Field Life NPV attributable to any Borrowing Base
      Asset and that it wishes for such event or circumstance to be taken into
      account for the purposes of the next Scheduled
  Projection.

            

    

     

    
      	
              (b)  

            	
              The
      Borrower shall ensure that each Reserves Report which is commissioned and
      prepared:

            

    

     

    
      	
              (i)  

            	
              pursuant
      to paragraph (a)(i) of this Clause 21.9 is delivered to the Agent within
      120 days of 31 December of each year;
and

            

    

     

    
      	
              (ii)  

            	
              pursuant
      to paragraph (a)(ii) to paragraph (a)(v) of this Clause 21.9 is delivered
      to the Agent within 30 days of the relevant request being made by the
      Borrower.

            

    

     

    
      	
              (c)  

            	
              The
      Borrower shall:

            

    

     

    
      	
              (i)  

            	
              ensure
      that each Reserves Report that is prepared pursuant to this Clause 21.9
      (Information:  Projections
      and Reserves Reports) is addressed to the Agent in a manner which
      ensures that the Independent Engineer owes a duty of care to the Lenders;
      and

            

    

     

    
      	
              (ii)  

            	
              instruct
      the Independent Engineer to include in each Reserves Report prepared by it
      the operating costs, capital expenditure and production profiles that it
      takes into consideration for each Borrowing Base
  Asset.

            

    

     

    
      	
              (d)  

            	
              At
      the Technical Bank’s request the Borrower must supply to the Agent a
      reconciliation report which reconciles (i) the projected costs and
      revenues set out in the then current Projection and the then current
      Budgets for that Calculation Period with (ii) the actual costs incurred
      and revenues received in that
period.

            

    

     

    
      
        
          
            	
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              (e)  

            	
              The
      Borrower shall, at the expense of the Obligor, prepare or procure the
      preparation of Borrower Updates and deliver each such Borrower Update to
      the Agent no later than 45 Business Days before 31 December of each year
      (unless a Reserves Report is scheduled pursuant to paragraph (b) of Clause
      21.9 to be delivered to the Agent within one month of such
      date).

            

    

     

    
      	
              (f)  

            	
              The
      Obligors must supply, and the Borrower must procure that each member of
      the Group supplies, promptly upon request made by the Agent, in connection
      with the procedures provided for in Clause 6 (Projections) and the
      preparation and/or adoption of the Projections, all such information and
      documents as the Agent may reasonably
request.

            

    

     

    
      	
              21.10  

            	
              Information:  Budgets

            

    

     

    
      	
              (a)  

            	
              The
      Borrower must supply to the Agent:

            

    

     

    
      	
              (i)  

            	
              a
      Budget for each Borrowing Base Asset referred to in Schedule 4 (Initial Borrowing Base
      Assets) pursuant to Clause 4.1 (Initial conditions
      precedent); and

            

    

     

    
      	
              (ii)  

            	
              a
      Budget for each other Borrowing Base Asset on or before the date on which
      that Borrowing Base Asset becomes designated as such pursuant to Clause 6
      (Projections).

            

    

     

    
      	
              (b)  

            	
              Thereafter,
      the Borrower must supply the Agent with a Budget for each Borrowing Base
      Asset which updates the information contained in the then current
      Budget:

            

    

     

    
      	
              (i)  

            	
              no
      later than 31 March of each year;
and

            

    

     

    
      	
              (ii)  

            	
              if
      any circumstance or event has arisen which results, or might reasonably be
      expected to result, in any information contained in the then current
      Budget being inaccurate in any material
respect.

            

    

     

    
      	
              (c)  

            	
              The
      Borrower shall ensure that the Budget supplied by it pursuant to this
      Agreement is in a form satisfactory to the Technical Bank and contains
      such information as the Technical Bank may reasonably
    require.

            

    

     

    
      	
              21.11  

            	
              Notification
      of default

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor shall notify the Agent of any Default (and the steps, if any,
      being taken to remedy it) promptly upon becoming aware of its occurrence
      (unless that Obligor is aware that a notification has already been
      provided by another Obligor).

            

    

     

    
      	
              (b)  

            	
              Promptly
      upon a request by the Agent, the Borrower shall supply to the Agent a
      certificate signed by two of its directors or senior officers on its
      behalf certifying that no Default is continuing (or if a Default is
      continuing, specifying the Default and the steps, if any, being taken to
      remedy it).

            

    

     

    
      
        
          
            	
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              21.12  

            	
              Inspection
      of data

            

    

     

    Each
Obligor shall allow any representative of the Agent, upon reasonable notice
following the occurrence of a Default, to have access to and to inspect any and
all books, records and other relevant data or information in the possession of
or available to each Obligor during regular business hours.

     

    
      	
              21.13  

            	
              Additional
      due diligence

            

    

     

    If the
Agent so requires following the Agent becoming aware of any event, circumstance
or any matter which in the reasonable opinion of Agent has, or would have, a
material and adverse impact on (a) any Assumption in the current Projection, (b)
any Budget, (c) on the progress of any Borrowing Base Asset; or (d) otherwise on
the operation and/or exploitation of any Borrowing Base Asset, then the Agent
may carry out, or appoint expert(s) or adviser(s) to carry out, such due
diligence with regard to any Borrowing Base Asset as it considers necessary and
the Borrower shall (i) take all such steps as may reasonably be necessary to
facilitate the same and (ii) be responsible for all reasonable costs (including
legal and other advisory fees) that may be incurred by the Agent in connection
with such due diligence.

     

    
      	
              21.14  

            	
              Use
      of websites

            

    

     

    
      	
              (a)  

            	
              The
      Borrower may satisfy its obligation under this Agreement to deliver any
      information in relation to those Lenders (the “Website Lenders”) who
      accept this method of communication by posting this information onto an
      electronic website designated by the Borrower and the Agent (the “Designated Website”)
      if:

            

    

     

    
      	
              (i)  

            	
              the
      Agent expressly agrees (after consultation with each of the Lenders) that
      it will accept communication of the information by this
      method;

            

    

     

    
      	
              (ii)  

            	
              both
      the Borrower and the Agent are aware of the address of and any relevant
      password specifications for the Designated Website;
  and

            

    

     

    
      	
              (iii)  

            	
              the
      information is in a format previously agreed between the Borrower and the
      Agent.

            

    

     

    If any
Lender (a “Paper Form
Lender”) does not agree to the delivery of information electronically
then the Agent shall notify the Borrower accordingly and the Borrower shall
supply the information to the Agent (in sufficient copies for each Paper Form
Lender) in paper form.  In any event the Borrower shall supply the
Agent with at least one copy in paper form of any information required to be
provided by it.

     

    
      	
              (b)  

            	
              The
      Agent shall supply each Website Lender with the address of and any
      relevant password specifications for the Designated Website following
      designation of that website by the Borrower and the
  Agent.

            

    

     

    
      	
              (c)  

            	
              The
      Borrower shall promptly upon becoming aware of its occurrence notify the
      Agent if:

            

    

     

    
      	
              (i)  

            	
              the
      Designated Website cannot be accessed due to technical
      failure;

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              the
      password specifications for the Designated Website
  change;

            

    

     

    
      	
              (iii)  

            	
              any
      new information which is required to be provided under this Agreement is
      posted onto the Designated Website;

            

    

     

    
      	
              (iv)  

            	
              any
      existing information which has been provided under this Agreement and
      posted onto the Designated Website is amended;
  or

            

    

     

    
      	
              (v)  

            	
              the
      Borrower becomes aware that the Designated Website or any information
      posted onto the Designated Website is or has been infected by any
      electronic virus or similar
software.

            

    

     

    If the
Borrower notifies the Agent under paragraph (c)(i) or paragraph (c)(v) above,
all information to be provided by the Borrower under this Agreement after the
date of that notice shall be supplied in paper form unless and until the Agent
and each Website Lender is satisfied that the circumstances giving rise to the
notification are no longer continuing.

     

    
      	
              (d)  

            	
              Any
      Website Lender may request, through the Agent, one paper copy of any
      information required to be provided under this Agreement which is posted
      onto the Designated Website.  The Borrower shall comply with any
      such request within ten Business
Days.

            

    

     

    
      	
              21.15  

            	
              “Know
      your customer” checks

            

    

     

    
      	
              (a)  

            	
              If:

            

    

     

    
      	
              (i)  

            	
              the
      introduction of or any change in (or in the interpretation, administration
      or application of) any law or regulation made after the date of this
      Agreement;

            

    

     

    
      	
              (ii)  

            	
              any
      change in the status of the Borrower or the composition of the
      shareholders of the Borrower after the date of this Agreement;
      or

            

    

     

    
      	
              (iii)  

            	
              a
      proposed assignment or transfer by a Lender of any of its rights and
      obligations under this Agreement to a party that is not a Lender prior to
      such assignment or transfer,

            

    

     

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

     

    
      
        
          
            	
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              (b)  

            	
              Each
      Lender shall promptly upon the request of the Agent supply, or procure the
      supply of, such documentation and other evidence as is reasonably
      requested by the Agent (for itself) in order for the Agent to carry out
      and be satisfied it has complied with all necessary “know your customer”
      or other similar checks under all applicable laws and regulations pursuant
      to the transactions contemplated in the Finance
  Documents.

            

    

     

    
      	
              (c)  

            	
              The
      Borrower shall, by not less than ten Business Days’ prior written notice
      to the Agent, notify the Agent of its intention to request that one of its
      Affiliates becomes an Additional Guarantor pursuant to Clause 25 (Changes to the
      Obligors).

            

    

     

    
      	
              (d)  

            	
              Following
      the giving of any notice pursuant to Clause 21.15(c) above, if the
      accession of such Additional Guarantor obliges the Lenders to comply with
      “know your customer” or similar identification procedures in circumstances
      where the necessary information is not already available to it, the
      Borrower shall promptly upon the request of the relevant Lender supply, or
      procure the supply of, such documentation and other evidence as is
      reasonably requested by that Lender (for itself or on behalf of any
      prospective new Lender) in order for that Lender or any prospective new
      Lender to carry out and be satisfied it has complied with all necessary
      “know your customer” or other similar checks under all applicable laws and
      regulations pursuant to the accession of such Affiliate to this Agreement
      as an Additional Guarantor.

            

    

     

    
      	
              22.  

            	
              GENERAL
      UNDERTAKINGS

            

    

     

    
      	
              (a)  

            	
              The
      undertakings in this Clause 22 remain in force from the date of this
      Agreement for so long as any amount is outstanding under the Finance
      Documents or any Commitment is in
force.

            

    

     

    
      	
              (b)  

            	
              Save
      in respect of Clause 22.2 (Corporate existence),
      Clause 22.4 (Compliance
      with laws), Clause 22.13 (Negative pledge),
      Clause 22.14 (Indebtedness) and
      Clause 22.26 (a) and (b) (Environmental matters),
      in this Clause 22 any reference to the ‘Group’ shall exclude reference to
      FX Drilling Company, Inc., and FX Producing Company,
  Inc.

            

    

     

    
      	
              22.2  

            	
              Corporate
      existence

            

    

     

    Each
Obligor shall, and shall ensure that each member of the Group shall, maintain
its corporate or other existence (as the case may be) under the laws of its
jurisdiction of incorporation or establishment and no member of the Group may
change its corporate or other domicile, or attempt to resolve to do
so.

     

    
      	
              22.3  

            	
              Compliance
      with documents

            

    

     

    Each
Obligor shall comply with its obligations under the Transaction Documents save
to the extent any failure to do so would, or would be reasonably likely to, have
a Material Adverse Effect.

     

    
      
        
          
            	
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              22.4  

            	
              Compliance
      with laws

            

    

     

    Each
Obligor shall, and shall ensure that each member of the Group shall, comply in
all material respects with all laws to which it may be subject.

     

    
      	
              22.5  

            	
              Authorisations

            

    

     

    Each
Obligor shall, and shall ensure that each member of the Group shall,
promptly:

     

    
      	
              (a)  

            	
              obtain,
      comply with and do all that is necessary to maintain in full force and
      effect; and

            

    

     

    
      	
              (b)  

            	
              supply
      certified copies to the Agent of,

            

    

     

    any
Authorisation required under any law or regulation of the Relevant Jurisdictions
to enable it to perform its obligations under the Transaction Documents and to
ensure the legality, validity, enforceability or admissibility in evidence in
each Relevant Jurisdiction of any Transaction Document.

     

    
      	
              22.6  

            	
              Taxation

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor shall (and the Parent shall ensure that each member of the Group
      will) duly and punctually pay and discharge all Taxes imposed upon it or
      its assets within the time period allowed without incurring penalties
      (except to the extent that (i) such payment is being contested in good
      faith, adequate reserves are being maintained for those Taxes and (ii)
      such payment can be lawfully
withheld).

            

    

     

    
      	
              (b)  

            	
              Each
      Obligor shall, and shall ensure that each member of the Group shall, file
      all tax returns required to be filed by it in any jurisdiction within the
      period required by law.

            

    

     

    
      	
              22.7  

            	
              Security
      Documents

            

    

     

    Each
Obligor shall, and shall ensure that each member of the Group will, promptly
take all steps (including the making or delivery of filings and the payment of
fees) which are within its power and reasonably necessary for the purposes of
ensuring that each Security Document to which it, or member of the Group, is a
party:

     

    
      	
              (a)  

            	
              confers
      the Security of the type it purports to create over the assets over which
      the Security is purported to be given by that Security Document and each
      such Security is (subject to any Permitted Security that may be prior
      ranking) first ranking;

            

    

     

    
      	
              (b)  

            	
              is
      valid and enforceable against (i) it or, as the case may be, that member
      of the Group, and (ii) its Insolvency Officers and its creditors or, as
      the case may be, the Insolvency Officers and creditors of that member of
      the Group; and

            

    

     

    
      	
              (c)  

            	
              is
      not capable of being avoided or set aside, whether in the winding up,
      administration or dissolution or otherwise of it or any of its assets or,
      as the case may be, that member of the Group or any of that Group member’s
      assets.

            

    

     

    
      
        
          
            	
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              22.8  

            	
              Pari
      passu ranking

            

    

     

    Each
Obligor shall, and shall ensure that each member of the Group will, procure that
at all times its indebtedness and obligations under the Finance Documents rank
at least pari passu
with the claims of all its, or as the case may be, that Group member’s, other
unsecured and unsubordinated creditors, except for obligations mandatorily
preferred by law applying to companies generally.

     

    
      	
              22.9  

            	
              Borrowing
      Base Assets

            

    

     

    Each
Obligor shall, and shall ensure that each member of the Group will:

     

    
      	
              (a)  

            	
              exercise
      such votes and other rights as it may have under the Field Documents for
      the purposes of ensuring that each Borrowing Base Asset is at all times
      developed, operated, maintained and/or exploited in a reasonable and
      prudent manner and in accordance with good oil industry practice, all
      applicable laws and regulations, the Environmental Decisions, and the
      provisions of the Transaction
Documents;

            

    

     

    
      	
              (b)  

            	
              not
      abandon all or any material part of any Borrowing Base Asset in which it
      has an interest before its scheduled Abandonment
  Date;

            

    

     

    
      	
              (c)  

            	
              not
      concur in any proposal or decision to abandon all or any material part of
      any Borrowing Base Asset in which it has an interest and vote against any
      such proposal or decision before its scheduled Abandonment
      Date;

            

    

     

    
      	
              (d)  

            	
              not
      exercise its rights on any operating or similar committee in a manner that
      would be materially prejudicial to the interests of the Lenders under the
      Finance Documents;

            

    

     

    
      	
              (e)  

            	
              maintain
      full and proper technical and financial records in relation to each
      Borrowing Base Asset in which it has an interest, and ensure (so far as it
      is able) that the Agent (and/or any person nominated by the Agent) is
      afforded reasonable access to each of such Borrowing Base Asset and all
      such records during normal business hours on reasonable notice;
      and

            

    

     

    
      	
              (f)  

            	
              not
      concur in any proposal or decision, nor exercise such votes and other
      rights as it may have under the Field Documents, to change the operator in
      relation to any Borrowing Base Asset without the prior written consent of
      the Majority Lenders.

            

    

     

    
      	
              22.10  

            	
              Field
      Documents

            

    

     

    Each
Obligor shall, and shall ensure that each member of the Group will:

     

    
      	
              (a)  

            	
              ensure
      that none of its rights under or in respect of any of the Field Documents
      are at any time terminated, suspended or limited in any material
      way;

            

    

     

    
      	
              (b)  

            	
              not
      agree to any waiver, material amendment, termination or cancellation of
      any of the Field Documents without the prior consent of the
      Agent;

            

    

     

    
      
        
          
            	
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              (c)  

            	
              duly
      and properly perform, in all material respects, its obligations under the
      Field Documents (except to the extent, if any, they are inconsistent with
      its obligations under the Finance
Documents);

            

    

     

    
      	
              (d)  

            	
              exercise
      its rights, and (so far as within its power) ensure that others exercise
      their respective rights, under and in respect of the Field Documents
      consistently with its obligations under the Finance
    Documents;

            

    

     

    
      	
              (e)  

            	
              not
      enter into any Field Document the entry into, performance, termination or
      breach of which would, or would be reasonably likely to, result in a
      Material Adverse Effect; and

            

    

     

    
      	
              (f)  

            	
              ensure
      that, to the extent possible, all rights of the Borrower under any Field
      Document are assigned to the Security Trustee on behalf of the Lenders or
      are otherwise subject to Security under a Security Document for the
      benefit of the Lenders in a manner which is in form and substance
      satisfactory to the Agent.

            

    

     

    
      	
              22.11  

            	
              Gas
      Sale Agreements

            

    

     

    The
Borrower shall grant Security over each Borrowing Base Asset gas sale agreement
in favour of the Security Trustee on behalf of the Lenders in a manner in form
and substance satisfactory to the Agent.

     

    
      	
              22.12  

            	
              Insurance

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor shall, and shall ensure that each member of the Group
      will:

            

    

     

    
      	
              (i)  

            	
              take
      out and maintain, or cause to be taken out and maintained, with respect to
      the Borrowing Base Assets and all activities relating thereto all
      insurances:

            

    

     

    
      	
              (A)  

            	
              in
      such amounts and on such terms and against such risks as would be taken
      out by prudent owners and/or operators (acting in accordance with good oil
      industry practice) of comparable assets and/or carrying out comparable
      activities in the region in which the relevant Borrowing Base Assets are
      located or the relevant activities are taking
  place;

            

    

     

    
      	
              (B)  

            	
              against
      any other risks which the Agent acting on behalf of the Majority Lenders
      may reasonably require as a result of any material change(s) in
      circumstances, risks or the Majority Lenders’ reasonable perception
      of  risk;

            

    

     

    
      	
              (ii)  

            	
              ensure
      that all insurances required under this Agreement are maintained with
      insurers or underwriters acceptable to the Agent (acting
      reasonably);

            

    

     

    
      
        
          
            	
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              (iii)  

            	
              procure
      that all moneys received or receivable by it under any insurance policy
      required by this Agreement relating to third party liability are applied
      directly to the person to whom the liability to which the sum relates was
      incurred, or to the relevant insured party in reimbursement of moneys
      expended in satisfaction of such
liability;

            

    

     

    
      	
              (iv)  

            	
              procure
      that the Security Trustee (as security trustee for the Finance Parties) is
      named as a co-insured or an additional insured party upon the policy,
      certificate or cover note relating to each material insurance policy
      required pursuant to this Agreement and that the Security Trustee is named
      as loss-payee;

            

    

     

    
      	
              (v)  

            	
              not
      do, or knowingly permit anything to be done, which may make any insurance
      policy required pursuant to this Agreement void, voidable, unavailable or
      unenforceable or render any sums which may be paid out under such
      insurance policies repayable in whole or in
  part;

            

    

     

    
      	
              (vi)  

            	
              promptly
      pay all premiums, calls and contributions and do all other things
      necessary to keep each insurance policy required pursuant to this
      Agreement maintained in full force and
effect;

            

    

     

    
      	
              (vii)  

            	
              on
      demand by the Agent, produce to the Agent (A) the policy, certificate or
      cover note relating to any insurance policy required by this Agreement (B)
      the receipt for the payment of any premium for any such insurance policy
      and (C) such other details of any such insurance policy as the Agent may
      reasonably request;

            

    

     

    
      	
              (viii)  

            	
              if
      the Agent so requires (acting reasonably), ensure that every policy
      relating to insurances required by this Agreement contains a non-vitiation
      clause and any other lender endorsements that the Agent may reasonably
      request, in each case, in such form as the Agent (acting reasonably) may
      approve (where, for these purposes, “lender endorsements” means any
      endorsements or clauses relating to the protection of the Security Trustee
      and/or the Finance Parties with respect to its or their interests in such
      insurance policies);

            

    

     

    
      	
              (ix)  

            	
              if
      the Security Trustee so requires:

            

    

     

    
      	
              (A)  

            	
              enter
      into a Security Document (in form and substance satisfactory to the
      Security Trustee) for the purposes of granting Security over any insurance
      policy required pursuant to this Agreement and the proceeds thereof in
      favour of the Security Trustee unless such Security has been granted under
      an existing Security Document;

            

    

     

    
      	
              (B)  

            	
              without
      prejudice to Clause 22.5 (Authorisations),
      promptly obtain all such Authorisations as may be necessary in order for
      such Security to be granted; and

            

    

     

    
      
        
          
            	
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              (C)  

            	
              deliver
      to the Security Trustee, or procure the delivery to the Security Trustee
      of, any documents that may be required in connection with the provision of
      any legal opinion that the Security Trustee may reasonably require in
      connection with the entry into such Security
  Document.

            

    

     

    
      	
              (b)  

            	
              No
      Finance Party shall have any liability for the payment of premiums or any
      other amount owing in respect of any insurances and the Obligors shall use
      their reasonable endeavours to ensure that this is the case
      notwithstanding the inclusion of the Security Trustee as co-insured,
      additional insured and/or loss payee upon the policy, certificate or cover
      note relating to any insurance policy required pursuant to this
      Agreement.

            

    

     

    
      	
              (c)  

            	
              If
      any Obligor fails to pay any costs relating to any insurance policy
      required pursuant to this Agreement the Agent may, at its sole discretion,
      pay any costs due and the Obligors shall immediately pay such costs to the
      Agent.

            

    

     

    
      	
              (d)  

            	
              The
      Borrower shall provide the Agent with a yearly insurance letter confirming
      that the insurances specified in Clause 22.12 (Insurance) relating to
      the Borrowing Base Assets are in full force and
  effect.

            

    

     

    
      	
              22.13  

            	
              Negative
      pledge

            

    

     

    In this
Clause 22.13, “Quasi-Security” means an
arrangement or transaction described in paragraph ‎(b)
below.

     

    
      	
              (a)  

            	
              Save
      with the prior written consent of the Agent acting on behalf of the
      Majority Lenders, no Obligor shall (and the Parent shall ensure that no
      other member of the Group will) create or permit to subsist any Security
      over any of its assets.

            

    

     

    
      	
              (b)  

            	
              No
      Obligor shall (and the Parent shall ensure that no other member of the
      Group will):

            

    

     

    
      	
              (i)  

            	
              sell,
      transfer or otherwise dispose of any of its assets on terms whereby they
      are or may be leased to or re-acquired by an Obligor or any other member
      of the Group;

            

    

     

    
      	
              (ii)  

            	
              sell,
      transfer or otherwise dispose of any of its receivables on recourse
      terms;

            

    

     

    
      	
              (iii)  

            	
              enter
      into any arrangement under which money or the benefit of a bank or other
      account may be applied, set-off or made subject to a combination of
      accounts; or

            

    

     

    
      	
              (iv)  

            	
              enter
      into any other preferential arrangement having a similar
      effect,

            

    

     

    in
circumstances where the arrangement or transaction is entered into primarily as
a method of raising Financial Indebtedness or of financing the acquisition of an
asset.

     

    
      
        
          
            	
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              (c)  

            	
              Paragraphs
      (a) and (b) above do not apply to any Security (or as the case may be)
      Quasi-Security, listed below:

            

    

     

    
      	
              (i)  

            	
              any
      Existing Security prior to the Refinancing
Date;

            

    

     

    
      	
              (ii)  

            	
              any
      netting or set-off arrangement entered into by any member of the Group in
      the ordinary course of its banking arrangements for the purpose of netting
      debit and credit balances;

            

    

     

    
      	
              (iii)  

            	
              any
      payment or close out netting or set-off arrangement pursuant to any
      hedging transaction entered into by a member of the Group for the purpose
      of:

            

    

     

    
      	
              (A)  

            	
              hedging
      any risk to which any member of the Group is exposed in its ordinary
      course of trading; or

            

    

     

    
      	
              (B)  

            	
              its
      interest rate or currency management operations which are carried out in
      the ordinary course of business and for non-speculative purposes
      only.

            

    

     

    excluding,
in each case, any Security or Quasi-Security under a credit support arrangement
in relation to a hedging transaction;

     

    
      	
              (iv)  

            	
              any
      lien arising by operation of law and in the ordinary course of
      trading;

            

    

     

    
      	
              (v)  

            	
              any
      Security or Quasi-Security over or affecting any asset acquired by a
      member of the Group after the date of this Agreement
  if:

            

    

     

    
      	
              (A)  

            	
              the
      Security or Quasi-Security was not created in contemplation of the
      acquisition of that asset by a member of the
  Group;

            

    

     

    
      	
              (B)  

            	
              the
      principal amount secured has not been increased in contemplation of, or
      since the acquisition of that asset by a member of the Group;
      and

            

    

     

    
      	
              (C)  

            	
              the
      Security or Quasi-Security is removed or discharged within three months of
      the date of acquisition of such
asset;

            

    

     

    
      	
              (vi)  

            	
              any
      Security or Quasi-Security over or affecting any asset of any company
      which becomes a member of the Group after the date of this Agreement,
      where the Security or Quasi-Security is created prior to the date on which
      that company becomes a member of the Group,
if:

            

    

     

    
      	
              (A)  

            	
              the
      Security or Quasi-Security was not created in contemplation of the
      acquisition of that company;

            

    

     

    
      	
              (B)  

            	
              the
      principal amount secured has not increased in contemplation of or since
      the acquisition of that company;
and

            

    

     

    
      
        
          
            	
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              (C)  

            	
              the
      Security or Quasi-Security is removed or discharged within three months of
      that company becoming a member of the
Group;

            

    

     

    
      	
              (vii)  

            	
              the
      Transaction Security; and

            

    

     

    
      	
              (viii)  

            	
              any
      Security or Quasi-Security arising under any retention of title, hire
      purchase or conditional sale arrangement or arrangements having similar
      effect in respect of goods supplied to a member of the Group in the
      ordinary course of trading and on the supplier’s standard or usual terms
      and not arising as a result of any default or omission by any member of
      the Group.

            

    

     

    
      	
              22.14  

            	
              Indebtedness

            

    

     

    
      	
              (a)  

            	
              Save
      with the prior written consent of the Agent acting on behalf of the
      Majority Lenders, the Parent shall ensure that no member of the Group
      shall incur, create or permit to subsist or have outstanding any Financial
      Indebtedness or enter into any agreement or arrangement whereby it is
      entitled to incur, create or permit to subsist any Financial
      Indebtedness.

            

    

     

    
      	
              (b)  

            	
              Paragraph
      (a) above does not apply to any Financial Indebtedness granted by a member
      of the Group:

            

    

     

    
      	
              (i)  

            	
              arising
      under or permitted by the Finance Documents (including any guarantee of
      such Financial Indebtedness); or

            

    

     

    
      	
              (ii)  

            	
              where:

            

    

     

    
      	
              (A)  

            	
              the
      relevant member of the Group has acceded as a Subordinated Lender under
      the Intercreditor Deed in respect of such Financial Indebtedness by
      delivering a duly completed and executed Intercreditor Accession Deed to
      the Agent;

            

    

     

    
      	
              (B)  

            	
              the
      rights in respect of such Financial Indebtedness are assigned to the
      Security Trustee in favour of the Lenders by the relevant creditor
      delivering a duly completed and executed Accession Undertaking, or
      otherwise providing Security in respect of such Financial Indebtedness in
      form and substance satisfactory to the Agent;
or

            

    

     

    
      	
              (iii)  

            	
              where
      the aggregate amount of such Financial Indebtedness does not exceed USD
      1,000,000 (or its equivalent).

            

    

     

    
      	
              22.15  

            	
              Loans
      and Guarantees

            

    

     

    
      	
              (a)  

            	
              Save
      with the prior written consent of the Agent acting on behalf of the
      Majority Lenders, no Obligor may, and each Obligor shall ensure that no
      member of the Group will:

            

    

     

    
      
        
          
            	
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              (i)  

            	
              be
      a creditor in respect of any Financial Indebtedness or provide (or allow
      to subsist) any other form of credit or financial accommodation to any
      person, other than intercompany loans and/or advances made for financing
      purposes by the Parent to its Subsidiaries from its own financial
      resources and not from proceeds from the Loans or Financial Indebtedness
      and, in the case of any Financial Indebtedness provided by an Obligor to
      the Borrower, on terms that such Financial Indebtedness is subordinated
      and subject to the Intercreditor Deed;
or

            

    

     

    
      	
              (ii)  

            	
              save
      in respect of any guarantee or surety provided pursuant to the terms of
      any Field Document, give (or allow to subsist) any guarantee or indemnity
      in respect of any contractual obligation of any other
    person.

            

    

     

    
      	
              (b)  

            	
              The
      Borrower undertakes that it will not maintain any bank accounts apart from
      the Project Accounts.

            

    

     

    
      	
              (c)  

            	
              Clause
      22.15(a) does not apply to:

            

    

     

    
      	
              (i)  

            	
              credit
      extended on normal trade terms by any member of the Group to its trading
      counterparties in the ordinary course of its oil and gas trading including
      advances of operating costs under any Mining Usufruct Agreement and Joint
      Operating Agreement and compliance with gas balancing provisions under gas
      sales agreements; or

            

    

     

    
      	
              (ii)  

            	
              any
      guarantee or indemnity given by any member of the Group in the ordinary
      course of its business in respect of any contractual obligation of any
      other member of the Group which is incurred in accordance with the Finance
      Documents.

            

    

     

    
      	
              22.16  

            	
              Disposals

            

    

     

    
      	
              (a)  

            	
              No
      Obligor may, and each Obligor shall ensure that no member of the Group
      will, enter into a single transaction or a series of transactions (whether
      related or not) and whether voluntary or involuntary to sell, lease,
      transfer or otherwise dispose of any of its material assets including any
      Borrowing Base Asset or any interests therein or any of its shareholding
      in any person holding any interest in any Borrowing Base Asset, without
      the prior written consent of the Agent acting on behalf of the Majority
      Lenders, which shall not be unreasonably withheld
  if:

            

    

     

    
      	
              (i)  

            	
              at
      the time of and immediately after such transaction or series of
      transactions no Event of Default shall subsist or occur (as the case may
      be);

            

    

     

    
      	
              (ii)  

            	
              such
      disposal is for fair value on terms resulting from arm’s length
      negotiations independently verified by valuers acceptable to the
      Agent;

            

    

     

    
      	
              (iii)  

            	
              following
      such disposal the Majority Lenders do not consider that an unreasonable
      concentration of risk will arise in connection with the remaining
      Borrowing Base Assets; and

            

    

     

    
      
        
          
            	
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              (iv)  

            	
              the
      proceeds of any such disposal are applied towards repaying the
      Loans.

            

    

     

    
      	
              (b)  

            	
              Paragraph
      (a) of Clause 22.16 does not apply
to:

            

    

     

    
      	
              (i)  

            	
              any
      sale of Petroleum on terms no less favourable to the Borrower than would
      result from arm’s length negotiations of cash-only consideration in the
      ordinary course of trading;

            

    

     

    
      	
              (ii)  

            	
              any
      disposal for cash not otherwise prohibited under the terms of any Finance
      Document;

            

    

     

    
      	
              (iii)  

            	
              any
      disposal of surplus materials or of materials that are forthwith replaced
      with materials of equivalent
utility;

            

    

     

    
      	
              (iv)  

            	
              any
      disposal arising solely by virtue of a
  Unitisation;

            

    

     

    
      	
              (v)  

            	
              any
      disposal of materials used in the course of a Group member’s operations
      where such disposal is made in the ordinary course of business and on
      terms no less favourable to the Borrower than would result from arm’s
      length negotiations; and

            

    

     

    
      	
              (vi)  

            	
              any
      disposals of a Petroleum Asset which has ceased to be designated as a
      Borrowing Base Asset in accordance with Clause 6 (Projections) where the
      amount of all Utilisations are reduced in accordance with Clause 8.2
      (Reduction), in
      each case, following the adoption of the new Projection which takes
      account of such Petroleum Asset ceasing to be designated a Borrowing Base
      Asset.

            

    

     

    
      	
              22.17  

            	
              Change
      of business

            

    

     

    No
Obligor may, and each Obligor shall ensure that no member of the Group will,
carry on any business other than the ownership, development and exploitation of
the Borrowing Base Assets and the exploration for, and development and
production of, Petroleum.

     

    
      	
              22.18  

            	
              Distributions

            

    

     

    
      	
              (a)  

            	
              For
      the purposes of this Agreement, “Distribution” means, in
      relation to any person:

            

    

     

    
      	
              (i)  

            	
              any
      payment, dividend or other distribution (whether in cash or in kind) in
      relation to any of its share
capital;

            

    

     

    
      	
              (ii)  

            	
              any
      redemption, reduction, repayment, or retirement of any of its share
      capital or any other payments resulting in a reduction of the payer’s own
      funds (including, in particular, reserve and supplementary
      capital);

            

    

     

    
      
        
          
            	
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              (iii)  

            	
              save
      for any payments in respect of Parent Operating Expenses, any payments in
      respect of, or any repayment, prepayment, redemption, retirement,
      discharge or purchase of, or sub-participation in, any loans or other
      financial accommodation made available to it by any Affiliate (including
      any such payments under the Subordinated Loan Agreement or Financial
      Indebtedness subject to the Intercreditor
Deed);

            

    

     

    
      	
              (iv)  

            	
              any
      other payments (including any management, advisory or other fees) or
      distributions to any of its shareholders or its
  Affiliates,

            

    

     

    in each
case, whether in cash or in kind and whether by way of actual payment, set-off,
counter-claim or otherwise.

     

    
      	
              (b)  

            	
              No
      Obligor (other than the Parent) may make or pay, or permit to be made or
      paid, any Distribution.

            

    

     

    
      	
              22.19  

            	
              Subordinated
      Loan Agreement

            

    

     

    The
Borrower and the Subordinated Lenders may not amend or waive any material term
of a Subordinated Loan Agreement without the prior written consent of the
Majority Lenders.

     

    
      	
              22.20  

            	
              Transactions
      with Affiliates

            

    

     

    Save for
any intercompany loans or equity contributions made by the Parent or any of its
Affiliates to the Borrower in accordance with the terms of the Finance Documents
and which are subject to the Intercreditor Deed, the Parent or any of its
Affiliates will not enter into any transaction with any Affiliate (other than
transactions on terms no less favourable than would result from arm’s length
negotiations for cash-only consideration in the ordinary course of trading)
without the consent of the Agent (such consent not to be unreasonably withheld
or delayed).

     

    
      	
              22.21  

            	
              Acquisitions

            

    

     

    
      	
              (a)  

            	
              The
      Borrower may not make any acquisitions or investments without the consent
      of the Majority Lenders.

            

    

     

    
      	
              (b)  

            	
              Paragraph
      (a) of Clause 22.21 does not apply
to:

            

    

     

    
      	
              (i)  

            	
              any
      Permitted Expenditure incurred by the
Borrower;

            

    

     

    
      	
              (ii)  

            	
              any
      acquisitions or investments made by the Parent or any member of the Group
      that is not a party to any Finance Document from its own financial
      resources and not from proceeds from the Loans or other Financial
      Indebtedness.

            

    

     

    
      	
              (iii)  

            	
              any
      acquisitions or investments in the ordinary course of trading and/or which
      have a value which is less than a sum equal to an increase of 15 per cent.
      of the then current Budget for any Borrowing Base Asset;
    and

            

    

     

    
      
        
          
            	
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              (iv)  

            	
              any
      acquisitions or investments by the Borrower from its own financial
      resources and not from proceeds from Loans or other Financial Indebtedness
      over oil and gas assets for cash or shares where the applicable reserves
      and purchase consideration are audited by engineers and/or valuers
      acceptable to the Agent.

            

    

     

    
      	
              22.22  

            	
              Merger

            

    

     

    No
Obligor shall (and the Parent shall ensure that no other member of the Group
will) enter into any amalgamation, demerger, merger, corporate reconstruction or
winding-up without the prior written consent of the Majority Lenders, such
consent not to be unreasonably withheld.

     

    
      	
              22.23  

            	
              Hedging

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor will, and the Parent shall procure that each Obligor will,
      implement the agreed Hedging Policy within the agreed timeframe stated
      therein and comply at all times with the most recently adopted version of
      the Hedging Policy.

            

    

     

    
      	
              (b)  

            	
              No
      Obligor may enter into any Hedging Agreement
  unless:

            

    

     

    
      	
              (i)  

            	
              such
      Hedging Agreement is an ISDA
Agreement;

            

    

     

    
      	
              (ii)  

            	
              such
      Hedging Agreement has been entered into by the Obligor in compliance with,
      and on terms consistent with, the terms of this Agreement and the Hedging
      Policy;

            

    

     

    
      	
              (iii)  

            	
              the
      counterparty to such Hedging Agreement is a Hedging Bank;
    and

            

    

     

    
      	
              (iv)  

            	
              such
      Hedging Agreement has been entered into for prudent treasury management
      purposes so as to cover the genuine commercial exposure of the Obligors
      and not for speculative purposes or for the purposes of raising
      finance.

            

    

     

    
      	
              (c)  

            	
              Save
      for:

            

    

     

    
      	
              (i)  

            	
              any
      Security constituted by any Security Document;
  and

            

    

     

    
      	
              (ii)  

            	
              any
      guarantee given pursuant to Clause 19 (Guarantee and
      indemnity),

            

    

     

    no
Obligor may enter into any margin call arrangement, post any collateral or
credit support, grant any Security or otherwise give any guarantee, indemnity or
other financial accommodation in respect of any Hedging Agreement entered into
by any Obligor.

     

    
      	
              (d)  

            	
              Each
      Obligor shall, promptly, on becoming a party to any Hedging
      Agreement:

            

    

     

    
      
        
          
            	
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              (i)  

            	
              enter
      into a Security Document (in form and substance satisfactory to the
      Security Trustee) for the purposes of granting Security over that Hedging
      Agreement in favour of the Security Trustee unless Security over such
      Hedging Agreement has been granted to the Security Trustee under any
      existing Security Document;

            

    

     

    
      	
              (ii)  

            	
              promptly
      obtain all such Authorisations as may be necessary in order for such
      Security to be granted; and

            

    

     

    
      	
              (iii)  

            	
              deliver
      to the Security Trustee, or procure the delivery to the Security Trustee,
      such documents as may be requested in connection with the provision of any
      legal opinion that the Security Trustee may reasonably require in
      connection with the entry into such Security
  Document.

            

    

     

    
      	
              (e)  

            	
              A
      Hedging Policy (or any updated version thereof) shall only be “adopted”
      upon (i) the Majority Lenders confirming their approval of the same and
      (ii) the Agent providing a copy of such approved version of the Hedging
      Policy to all Lenders (and “adoption” shall be
      construed accordingly).

            

    

     

    
      	
              (f)  

            	
              No
      Obligor shall, and the Parent shall procure that no Obligor shall, enter
      into any hedging arrangement outside the Hedging
  Policy.

            

    

     

    
      	
              22.24  

            	
              Preservation
      of Assets

            

    

     

    The
Obligor shall, and the Parent shall ensure that each member of the Group will,
maintain and preserve all of its assets that are necessary or desirable, in the
opinion of the Agent, for the conduct of its business, as conducted at the date
of this Agreement, in good working order and condition, ordinary wear and tear
excepted.

     

    
      	
              22.25  

            	
              Access

            

    

     

    The
Obligor shall, and the Parent shall ensure that each member of the Group whose
shares are the subject of the Transaction Security will:

     

    
      	
              (a)  

            	
              on
      request of the Agent, provide the Agent and Security Trustee with any
      information the Agent or Security Trustee may reasonably require about
      that company’s business and affairs, the Charged Property and its
      compliance with the terms of the Security Documents;
  and

            

    

     

    
      	
              (b)  

            	
              permit
      the Security Trustee, its representatives, delegates, professional
      advisers and contractors, free access at all reasonable times and on
      reasonable notice at the cost of the Obligors, (i) to inspect and take
      copies and extracts from the books, accounts and records of that company
      and (ii) to view the Charged Property (without becoming liable as
      mortgagee in possession).

            

    

     

    
      	
              22.26  

            	
              Environmental
      matters

            

    

     

    
      	
              (a)  

            	
              Each
      Obligor shall, and shall ensure that each member of the Group will, comply
      in all material respects with all Environmental and Mining Laws and
      Environmental and Mining Licences applicable to it and/or any of its
      assets.

            

    

     

    
      
        
          
            	
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              (b)  

            	
              Each
      Obligor shall, and shall ensure that each member of the Group will,
      promptly upon becoming aware of the same notify the Agent
    of:

            

    

     

    
      	
              (i)  

            	
              any
      Environmental and Mining Claim current, or to its knowledge, pending or
      threatened;

            

    

     

    
      	
              (ii)  

            	
              any
      circumstances reasonably likely to result in an Environmental and Mining
      Claim; or

            

    

     

    
      	
              (iii)  

            	
              any
      material environmental contamination on any site connected with any
      Borrowing Base Asset.

            

    

     

    
      	
              (c)  

            	
              Each
      Obligor shall, and shall ensure that each member of the Group will, comply
      in all material respects with any Environmental Decision that is
      applicable to it and/or any of its
assets.

            

    

     

    
      	
              22.27  

            	
              Mining
      Usufruct Rights

            

    

     

    
      	
              (a)  

            	
              The
      Borrower and the Parent shall use best endeavours to obtain (by way of
      transfer from PGNiG to the Borrower) a 49% interest in the mining usufruct
      rights for exploitation for each of the KSK Fields and the consent of the
      State Treasury of the Republic of Poland to such transfer. Failure by the
      Borrower and/or the Parent to obtain such transfer and/or consent shall in
      no way prejudice the conditions that need to be satisfied for KSK First
      Production to have been achieved.

            

    

     

    
      	
              (b)  

            	
              To
      the extent the Borrower is legally able to do so, the Borrower will grant
      and perfect a pledge (or pledges) in favour of the Security Trustee, in
      form and substance satisfactory to the Agent, over mining usufruct rights
      in respect of any applicable Borrowing Base Asset which the Agent requires
      to be pledged to the Security Trustee within 60 days of the Borrower so
      being able to grant such pledge.

            

    

     

    
      	
              22.28  

            	
              Offtake

            

    

     

    Save as
otherwise agreed with the Agent acting on behalf of the Majority Lenders, the
Borrower shall not dispose of any Petroleum produced from any Borrowing Base
Asset except to PGNiG.

     

    
      	
              22.29  

            	
              UCC Filings

            

    

     

    Following
the Refinancing Date, the Borrower shall, and the Parent shall ensure that the
Borrower shall (i) promptly release any Uniform Commercial Code security filings
in Utah and Nevada relating to the Existing Facility Agreement and (ii) file
necessary Uniform Commercial Code security filings in relation to the Finance
Documents to ensure first priority ranking for the Transaction Security in Utah
and Nevada.

     

    
      
        
          
            	
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              22.30  

            	
              Certificate
      from the Polish Tax Office

            

    

     

    The
Borrower shall, and the Parent shall procure that the Borrower shall, within ten
(10) Business Days of the date of this Agreement obtain a Certificate from the
Polish Tax Office (Urząd
Skarbowy) and Polish Social Security Office (ZUS) confirming whether the
Borrower has any outstanding taxes or social security payments, such certificate
to be issued no earlier than 30 days before the date of the first Utilisation
Request.

     

    
      	
              22.31  

            	
              Termination
      of Accounts

            

    

     

    The
Borrower shall, and the Parent shall procure that the Borrower shall, within 30
days of the date of this Agreement:

     

    
      	
              (a)  

            	
              close
      the account with ING Bank Slaski S.A. with IBAN 61 1050 0086 1000 0023
      1214 1837; and

            

    

     

    
      	
              (b)  

            	
              cease
      to hold the joint account with ING Bank Slaski S.A. with IBAN 54 1050 0086
      1000 0022 7509 7760.

            

    

     

    
      	
              23.  

            	
              EVENTS
      OF DEFAULT

            

    

     

    Each of
the events or circumstances set out in this Clause 23 is an Event of Default
(save as for Clause 23.23 (Acceleration)).

     

    
      	
              23.1  

            	
              Non-payment

            

    

     

    An
Obligor does not pay on the due date any amount payable pursuant to a Finance
Document at the place at and in the currency in which it is expressed to be
payable unless:

     

    
      	
              (a)  

            	
              its
      failure to pay is caused by:

            

    

     

    
      	
              (i)  

            	
              administrative
      or technical error; or

            

    

     

    
      	
              (ii)  

            	
              a
      Disruption Event; and

            

    

     

    
      	
              (b)  

            	
              payment
      is made within three (3) Business Days of its due
  date.

            

    

     

    
      	
              23.2  

            	
              Breach
      of Key Covenants

            

    

     

    An
Obligor does not comply with any provision set out in any of Clauses 22.2 (Corporate existence), 22.13
(Negative pledge),
22.14 (Indebtedness),
22.15 (Loans and
guarantees), 22.16 (Disposals), 22.18 (Distributions), or 22.21
(Acquisitions).

     

    
      	
              23.3  

            	
              Other
      obligations

            

    

     

    
      	
              (a)  

            	
              An
      Obligor does not comply with any provision of the Finance Documents (other
      than those referred to in Clause 23.1 (Non-payment)).

            

    

     

    
      
        
          
            	
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              (b)  

            	
              No
      Event of Default under paragraph (a) above will occur if the failure to
      comply is capable of remedy and is remedied within 21 days of the earlier
      of (A) the Agent giving notice to the Borrower and (B) the Borrower
      becoming aware of the failure to
comply.

            

    

     

    
      	
              23.4  

            	
              Misrepresentation

            

    

     

    Any
representation or statement made or deemed to be made by an Obligor in the
Finance Documents or any other document delivered by or on behalf of any Obligor
under or in connection with any Finance Document is or proves to have been
incorrect or misleading in any material respect when made or deemed to be made
unless the circumstances giving rise to the misrepresentation:

     

    
      	
              (a)  

            	
              are
      capable of remedy; and

            

    

     

    
      	
              (b)  

            	
              are
      remedied to the reasonable satisfaction of the Agent within 21 days of the
      date on which the relevant representation or statement was made or deemed
      to be made.

            

    

     

    
      	
              23.5  

            	
              Cross
      default

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

            	
              Any
      Financial Indebtedness of any member of the Group is declared to be or
      otherwise becomes due and payable prior to its specified maturity as a
      result of an event of default (however
  described).

            

    

     

    
      	
              (c)  

            	
              Any
      commitment for any Financial Indebtedness of any member of the Group is
      cancelled or suspended by a creditor of any member of the Group as a
      result of an event of default (however
  described).

            

    

     

    
      	
              (d)  

            	
              Any
      creditor of any member of the Group becomes entitled to declare any
      Financial Indebtedness of any member of the Group due and payable prior to
      its specified maturity as a result of an event of default (however
      described).

            

    

     

    
      	
              (e)  

            	
              No
      Event of Default will occur under this Clause 23.5 if the aggregate amount
      of Financial Indebtedness or commitment for Financial Indebtedness falling
      within paragraphs (a) to (d) above is less than USD 250,000 (or its
      equivalent in any other currency or
currencies).

            

    

     

    
      	
              23.6  

            	
              Insolvency

            

    

     

    
      	
              (a)  

            	
              A
      member of the Group is unable or admits inability to pay its debts as they
      fall due, suspends making payments on any of its debts or, by reason of
      actual or anticipated financial difficulties, commences negotiations with
      one or more of its creditors with a view to rescheduling any of its
      indebtedness.

            

    

     

    
      	
              (b)  

            	
              The
      value of the assets of any member of the Group is less than its
      liabilities (taking into account contingent and prospective
      liabilities).

            

    

     

    
      
        
          
            	
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              (c)  

            	
              A
      moratorium is declared in respect of any indebtedness of any member of the
      Group.

            

    

     

    
      	
              23.7  

            	
              Insolvency
      proceedings

            

    

     

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

     

    
      	
              (a)  

            	
              the
      suspension of payments, a moratorium of any indebtedness, winding-up,
      dissolution, administration or reorganisation (by way of voluntary
      arrangement, scheme of arrangement or otherwise) of any member of the
      Group other than a solvent liquidation or reorganisation of any member of
      the Group which is not an Obligor;

            

    

     

    
      	
              (b)  

            	
              a
      composition, compromise, assignment or arrangement with any creditor of
      any member of the Group;

            

    

     

    
      	
              (c)  

            	
              the
      appointment of a liquidator (other than in respect of a solvent
      liquidation of a member of the Group which is not an Obligor), receiver,
      administrative receiver, administrator, compulsory manager or other
      similar officer in respect of any member of the Group or any of its
      assets; or

            

    

     

    
      	
              (d)  

            	
              enforcement
      of any Security over any assets of any member of the
  Group,

            

    

     

    or any
analogous procedure or step is taken in any jurisdiction.

     

    This
Clause 23.7 shall not apply to any winding-up petition which is frivolous or
vexatious and is discharged, stayed or dismissed within fourteen days of
commencement.

     

    
      	
              23.8  

            	
              Creditors’
      process

            

    

     

    Any
expropriation, attachment, sequestration, distress or execution affects any
asset or assets of a member of the Group having an aggregate value of USD
250,000 and is not discharged within 14 days.

     

    
      	
              23.9  

            	
              Unlawfulness

            

    

     

    It is or
becomes unlawful for an Obligor to perform any of its obligations under the
Transaction Documents or any Transaction Security created or expressed to be
created or evidenced by the Security Documents ceases to be
effective.

     

    
      	
              23.10  

            	
              Repudiation

            

    

     

    A
Transaction Document is repudiated or becomes void or unenforceable against an
Obligor or any Obligor evidences an intention to repudiate any Transaction
Document.

     

    
      	
              23.11  

            	
              Transaction
      Security

            

    

     

    
      	
              (a)  

            	
              Any
      Obligor fails to perform or comply with any of the obligations assumed by
      it in the Security Documents.

            

    

     

    
      
        
          
            	
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              (b)  

            	
              At
      any time the guarantee provided by the Guarantors pursuant to Clause 19
      (Guarantee and
      indemnity) or any of the Transaction Security is or becomes
      unlawful or is not, or ceases to be legal, valid, binding or enforceable
      or otherwise ceases to be effective or is alleged by any Obligor or the
      grantor of such Security to be ineffective or any Security Document
      otherwise ceases to confer the Security it purports to
    create.

            

    

     

    
      	
              (c)  

            	
              If
      at any time following the Refinancing Date, any of the Transaction
      Security fails to have first ranking priority or is subject to any prior
      ranking or pari
      passu ranking Security.

            

    

     

    
      	
              23.12  

            	
              Cessation
      of business

            

    

     

    Any
Obligor or any member of the Group that is a party to any Finance Document
ceases, or threatens to cease, to carry on all or a substantial part of its
business.

     

    
      	
              23.13  

            	
              Borrowing
      Base Assets

            

    

     

    
      	
              (a)  

            	
              All
      or any part of any Borrowing Base Asset, or any Petroleum or revenues
      derived from any Borrowing Base Asset is nationalised, expropriated,
      compulsorily acquired or seized by any government or other governmental or
      public sector agency or body or any government or other governmental or
      public sector agency, takes, or officially announces that it will take,
      any step with a view to such nationalisation, expropriation, compulsory
      acquisition or seizure.

            

    

     

    
      	
              (b)  

            	
              Any
      of the following occurs:

            

    

     

    
      	
              (i)  

            	
              any
      decision is taken to abandon any Borrowing Base Asset prior to its
      Abandonment Date; or

            

    

     

    
      	
              (ii)  

            	
              there
      has been an interruption or suspension of the production or recovery of
      any Petroleum derived from or relating to any Borrowing Base Asset for (A)
      a period of 60 days (or more) and (B) such interruption or suspension is
      likely to have a Material Adverse
Effect.

            

    

     

    
      	
              23.14  

            	
              Field
      Documents

            

    

     

    
      	
              (a)  

            	
              Any
      Authorisation relating to any Borrowing Base Asset (including any
      Environmental and Mining License) is materially modified, refused,
      suspended, revoked, rescinded, withheld or terminated or not obtained
      within a timeframe required to duly operate the respective Borrowing Base
      Assets and comply with the respective
  Projections.

            

    

     

    
      	
              (b)  

            	
              It
      is or becomes unlawful for any party to perform any of its obligations
      under any Field Document or any Field Document otherwise ceases to be
      valid, binding or enforceable in whole or in part and the same, in each
      case, in the reasonable opinion of the Agent has, or is likely to have, a
      Material Adverse Effect.

            

    

     

    
      
        
          
            	
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              (c)  

            	
              Any
      party to a Field Document repudiates, or evidences an intention in writing
      to repudiate, a Field Document and the repudiation of such Field Document
      in the reasonable opinion of the Agent has, or is likely to have, a
      Material Adverse Effect.

            

    

     

    
      	
              (d)  

            	
              There
      has been a default by a party to any Field Document and the same, in the
      reasonable opinion of the Agent has, or is likely to have, a Material
      Adverse Effect.

            

    

     

    
      	
              (e)  

            	
              PGNiG
      fails to comply with any payment or other material obligation under the
      Field Documents.

            

    

     

    
      	
              (f)  

            	
              Any
      Field Document is terminated or otherwise ceases to be in full force and
      effect, amended, modified or subject to the grant of any waiver having the
      effect of an amendment or modification of such Field Document and the
      same, in each case, in the reasonable opinion of the Agent has, or is
      likely to have, a Material Adverse
Effect.

            

    

     

    
      	
              23.15  

            	
              Material
      adverse change

            

    

     

    Any event
or series of events occurs which, in the reasonable opinion of the Agent acting
on behalf of the Majority Lenders, has or would be likely to have a Material
Adverse Effect unless the effects of such event or series of events are capable
of remedy and:

     

    
      	
              (a)  

            	
              the
      Borrower (i) commences consultations with the Agent (as to the possible
      steps that need to be taken to remedy and/or mitigate those effects)
      within 5 Business Days of the date of issue of a notice from the Agent on
      behalf of the Lenders or, if earlier, of the date of the occurrence of the
      relevant event or series of events and (ii) continues with such
      consultations for such period as the Lenders may reasonably request;
      and

            

    

     

    
      	
              (b)  

            	
              the
      relevant effects are remedied or mitigated to the satisfaction of the
      Agent within the remedy period (where, for these purposes, “remedy period”
      means (i) the period of ten (10) Business Days commencing on the date of
      the relevant notice from the Agent on behalf of the Lenders, or if
      earlier, the date of occurrence of the relevant event or series of events
      or (ii) such longer period as may be approved by the Agent pursuant to the
      consultations referred to in paragraph
(a)).

            

    

     

    
      	
              23.16  

            	
              Unitisation

            

    

     

    Any
Unitisation occurs and the Projection which is adopted in accordance with Clause
6 (Projections)
following such Unitisation demonstrates that the Obligors will not be able to
meet their liabilities as they fall due.

     

    
      	
              23.17  

            	
              Ownership

            

    

     

    The
Parent ceases to hold indirectly or directly the entire issued share capital of
the Borrower.

     

    
      
        
          
            	
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              23.18  

            	
              Insurances

            

    

     

    The
Obligor fails to take out or maintain, or cause to be taken out and maintained,
any insurance required by Clause 20.19 (Insurances) or any such
required insurance is vitiated, becomes invalid or void or otherwise ceases to
be in full force and effect and, in any case, the same is not remedied to the
reasonable satisfaction of the Agent within ten (10) Business Days of the Agent
(acting on behalf of the Lenders) giving notice to the Borrower or, if earlier,
the Borrower becoming aware of the same.

     

    
      	
              23.19  

            	
              Adverse
      proceedings

            

    

     

    Any
litigation, arbitration or administrative proceedings (the “relevant proceedings”) of or
before any court, arbitral body or agency have been started against any Obligor
or any other member of the Group that is a party to any Finance Document; and
such relevant proceedings, if adversely determined, would (in the reasonable
opinion of the Agent) have or be reasonably likely to have a Material Adverse
Effect; and it is reasonably likely that such relevant proceedings will be
adversely determined.

     

    
      	
              23.20  

            	
              Qualification
      of accounts

            

    

     

    The
auditors of the Group adversely qualify their report(s) on any audited financial
statements, or (as the case may be) any audited consolidated financial
statements, of any Obligor or any other member of the Group that is a party to
any Finance Document in any way save where such qualification is technical in
nature or related to Section 404 of the Sarbanes-Oxley Act and immaterial in the
context of the Facility and any weakness or deficiency does not impair the
ability of the Borrower to make full and timely payments to the Lenders as and
when required under the Facility.

     

    
      	
              23.21  

            	
              Group
      Liquidity Test

            

    

     

    The
Parent is unable to make the certification required in Clause 21.6 (Compliance Certificate) or
any such certification is subsequently shown to be untrue or misleading in any
material respect.

     

    
      	
              23.22  

            	
              Dutch
      Tax Status

            

    

     

    A notice
under Article 36 Tax Collection Act (Invorderingswet 1990) has
been given by any member of the Group.

     

    
      	
              23.23  

            	
              Acceleration

            

    

     

    On and at
any time after the occurrence of an Event of Default which is continuing the
Agent may, and shall if so directed by the Majority Lenders, by notice to the
Borrower:

     

    
      	
              (a)  

            	
              cancel
      the Total Commitments, at which time they shall immediately be
      cancelled;

            

    

     

    
      	
              (b)  

            	
              declare
      that all or part of the Loans, together with accrued interest, and all
      other amounts accrued or outstanding under the Finance Documents be
      immediately due and payable, at which time they shall become immediately
      due and payable;

            

    

     

     

    

      
        
          
            
              	
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              (c)  

            	
              declare
      that all or part of the Loans be payable on demand, at which time they
      shall immediately become payable on demand by the Agent on the
      instructions of the Majority Lenders;
and/or

            

    

     

    
      	
              (d)  

            	
              exercise,
      or direct the Security Trustee (subject to the Intercreditor Deed) to
      exercise, any or all of its rights, remedies and powers under any of the
      Finance Documents.

            

    

     

    
      
        
          
            	
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    SECTION
11

     

    CHANGES
TO PARTIES

     

    
      	
              24.  

            	
              CHANGES
      TO THE LENDERS

            

    

     

    
      	
              24.1  

            	
              Assignments
      and transfers by the Lenders

            

    

     

    Subject
to this Clause 24, a Lender (the “Existing Lender”)
may:

     

    
      	
              (a)  

            	
              assign
      any of its rights; or

            

    

     

    
      	
              (b)  

            	
              transfer
      by novation any of its rights and
obligations,

            

    

     

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

     

    
      	
              24.2  

            	
              Conditions
      of assignment or transfer

            

    

     

    
      	
              (a)  

            	
              An
      assignment will only be effective
on:

            

    

     

    
      	
              (i)  

            	
              receipt
      by the Agent (whether in the Assignment Agreement or otherwise) of written
      confirmation from the New Lender (in form and substance satisfactory to
      the Agent) that the New Lender will assume the same obligations to the
      other Finance Parties and the other Secured Parties as it would have been
      under if it was an Original Lender;
and

            

    

     

    
      	
              (ii)  

            	
              performance
      by the Agent of all necessary “know your customer” or
      other similar checks under all applicable laws and regulations in relation
      to such assignment to a New Lender, the completion of which the Agent
      shall promptly notify to the Existing Lender and the New
      Lender.

            

    

     

    
      	
              (b)  

            	
              A
      transfer will only be effective if the procedure set out in Clause 24.5
      (Procedure for
      transfer) is complied with.

            

    

     

    
      	
              (c)  

            	
              If:

            

    

     

    
      	
              (i)  

            	
              a
      Lender assigns or transfers any of its rights or obligations under the
      Finance Documents or changes its Facility Office;
  and

            

    

     

    
      	
              (ii)  

            	
              as
      a result of circumstances existing at the date the assignment, transfer or
      change occurs, an Obligor would be obliged to make a payment to the New
      Lender or Lender acting through its new Facility Office under Clause 15
      (Increased
      costs),

            

    

     

    
      
        
          
            	
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    then the
New Lender or Lender acting through its new Facility Office is only entitled to
receive payment under those Clauses to the same extent as the Existing Lender or
Lender acting through its previous Facility Office would have been if the
assignment, transfer or change had not occurred.  This paragraph (c)
shall not apply in respect of an assignment or transfer made in the ordinary
course of the primary syndication of the Facility.

     

    
      	
              (d)  

            	
              Each
      New Lender, by executing the relevant Transfer Certificate or Assignment
      Agreement, confirms, for the avoidance of doubt, that the Agent has
      authority to execute on its behalf any amendment or waiver that has been
      approved by or on behalf of the requisite Lender or Lenders in accordance
      with this Agreement on or prior to the date on which the transfer or
      assignment becomes effective in accordance with this Agreement and that it
      is bound by that decision to the same extent as the Existing Lender would
      have been had it remained a Lender.

            

    

     

    
      	
              24.3  

            	
              Assignment
      or transfer fee

            

    

     

    Save in
the case of a transfer to a New Lender which is an Affiliate of an Existing
Lender, the New Lender shall, on the date upon which an assignment or transfer
takes effect, pay to the Agent (for its own account) a fee
of  $5,000.

     

    
      	
              24.4  

            	
              Limitation
      of responsibility of Existing
Lenders

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (i)  

            	
              the
      legality, validity, effectiveness, adequacy or enforceability of the
      Finance Documents, the Transaction Security or any other
      documents;

            

    

     

    
      	
              (ii)  

            	
              the
      financial condition of any Obligor;

            

    

     

    
      	
              (iii)  

            	
              the
      performance and observance by any Obligor of its obligations under the
      Finance Documents or any other documents;
or

            

    

     

    
      	
              (iv)  

            	
              the
      accuracy of any statements (whether written or oral) made in or in
      connection with any Finance Document or any other
  document,

            

    

     

    and any
representations or warranties implied by law are excluded.

     

    
      	
              (b)  

            	
              Each
      New Lender confirms to the Existing Lender and the other Finance Parties
      that it:

            

    

     

    
      	
              (i)  

            	
              has
      made (and shall continue to make) its own independent investigation and
      assessment of the financial condition and affairs of each Obligor and its
      related entities in connection with its participation in this Agreement
      and has not relied exclusively on any information provided to it by the
      Existing Lender in connection with any Finance Document;
    and

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              will
      continue to make its own independent appraisal of the creditworthiness of
      each Obligor and its related entities whilst any amount is or may be
      outstanding under the Finance Documents or any Commitment is in
      force.

            

    

     

    
      	
              (c)  

            	
              Nothing
      in any Finance Document obliges an Existing Lender
  to:

            

    

     

    
      	
              (i)  

            	
              accept
      a re-transfer or re-assignment from a New Lender of any of the rights and
      obligations assigned or transferred under this Clause 24;
    or

            

    

     

    
      	
              (ii)  

            	
              support
      any losses directly or indirectly incurred by the New Lender by reason of
      the non-performance by any Obligor of its obligations under the Finance
      Documents or otherwise.

            

    

     

    
      	
              24.5  

            	
              Procedure
      for transfer

            

    

     

    
      	
              (a)  

            	
              Subject
      to the conditions set out in Clause 24.2 (Conditions of assignment or
      transfer) a transfer is effected in accordance with paragraph (c)
      below when the Agent executes an otherwise duly completed Transfer
      Certificate delivered to it by the Existing Lender and the New
      Lender.  The Agent shall, subject to paragraph (b) below, as
      soon as reasonably practicable after receipt by it of a duly completed
      Transfer Certificate appearing on its face to comply with the terms of
      this Agreement and delivered in accordance with the terms of this
      Agreement, execute that Transfer
Certificate.

            

    

     

    
      	
              (b)  

            	
              The
      Agent shall only be obliged to execute a Transfer Certificate delivered to
      it by the Existing Lender and the New Lender once it is satisfied it has
      complied with all necessary “know your customer” or other similar checks
      under all applicable laws and regulations in relation to the transfer to
      such New Lender.

            

    

     

    
      	
              (c)  

            	
              On
      the Transfer Date:

            

    

     

    
      	
              (i)  

            	
              to
      the extent that in the Transfer Certificate the Existing Lender seeks to
      transfer by novation its rights and obligations under the Finance
      Documents and in respect of the Transaction Security each of the Obligors
      and the Existing Lender shall be released from further obligations towards
      one another under the Finance Documents and in respect of the Transaction
      Security and their respective rights against one another shall be
      cancelled (being the “Discharged Rights and
      Obligations”);

            

    

     

    
      	
              (ii)  

            	
              each
      of the Obligors and the New Lender shall assume obligations towards one
      another and/or acquire rights against one another which differ from the
      Discharged Rights and Obligations only insofar as that Obligor and the New
      Lender have assumed and/or acquired the same in place of that Obligor and
      the Existing Lender;

            

    

     

    
      
        
          
            	
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              (iii)  

            	
              the
      Agent, the Mandated Lead Arrangers, the Security Trustee, the New Lender
      and the other Lenders shall acquire the same rights and assume the same
      obligations between themselves and in respect of the Transaction Security
      as they would have acquired and assumed had the New Lender been an
      Original Lender with the rights and/or obligations acquired or assumed by
      it as a result of the transfer and to that extent the Agent, the Mandated
      Lead Arrangers, the Security Trustee and the Existing Lender shall each be
      released from further obligations to each other under the Finance
      Documents; and

            

    

     

    
      	
              (iv)  

            	
              the
      New Lender shall become a Party as a
“Lender”.

            

    

     

    
      	
              24.6  

            	
              Procedure
      for assignment

            

    

     

    
      	
              (a)  

            	
              Subject
      to the conditions set out in Clause 24.2 (Conditions of assignment or
      transfer) an assignment may be effected in accordance with
      paragraph (c) below when the Agent executes an otherwise duly completed
      Assignment Agreement delivered to it by the Existing Lender and the New
      Lender.  The Agent shall, subject to paragraph (b) below, as
      soon as reasonably practicable after receipt by it of a duly completed
      Assignment Agreement appearing on its face to comply with the terms of
      this Agreement and delivered in accordance with the terms of this
      Agreement, execute that Assignment
Agreement.

            

    

     

    
      	
              (b)  

            	
              The
      Agent shall only be obliged to execute an Assignment Agreement delivered
      to it by the Existing Lender and the New Lender once it is satisfied it
      has complied with all necessary “know your customer” or other similar
      checks under all applicable laws and regulations in relation to the
      assignment to such New Lender.

            

    

     

    
      	
              (c)  

            	
              On
      the Transfer Date:

            

    

     

    
      	
              (i)  

            	
              the
      Existing Lender will assign absolutely to the New Lender the rights under
      the Finance Documents expressed to be the subject of the assignment in the
      Assignment Agreement;

            

    

     

    
      	
              (ii)  

            	
              the
      Existing Lender will be released by each Obligor and the other Finance
      Parties from the obligations owed by it (the “Relevant Obligations”)
      and expressed to be the subject of the release in the Assignment
      Agreement; and

            

    

     

    
      	
              (iii)  

            	
              the
      New Lender shall become a Party as a “Lender” and will be bound by
      obligations equivalent to the Relevant
  Obligations.

            

    

     

    
      
        
          
            	
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              (d)  

            	
              Lenders
      may utilise procedures other than those set out in this Clause 24.6 to
      assign their rights under the Finance Documents (but not, without the
      consent of the relevant Obligor or unless in accordance with Clause 24.5
      (Procedure for
      transfer), to obtain a release by that Obligor from the obligations
      owed to that Obligor by the Lenders nor the assumption of equivalent
      obligations by a New Lender) provided that they
      comply with the conditions set out in Clause 24.2 (Conditions of assignment or
      transfer).

            

    

     

    
      	
              24.7  

            	
              Copy
      of Transfer Certificate or Assignment Agreement to
  Borrower

            

    

     

    The Agent
shall, as soon as reasonably practicable after it has executed a Transfer
Certificate or an Assignment Agreement, send to the Borrower a copy of that
Transfer Certificate or Assignment Agreement.

     

    
      	
              24.8  

            	
              Security
      over Lenders’ rights

            

    

     

    In
addition to the other rights provided to Lenders under this Clause 24.8, each
Lender may without consulting with or obtaining consent from any Obligor at any
time charge, assign or otherwise create Security in or over (whether by way of
collateral or otherwise) all or any of its rights under any Finance Document to
secure obligations of that Lender including, without limitation:

     

    
      	
              (a)  

            	
              any
      charge, assignment or other Security to secure obligations to a federal
      reserve or central bank; and

            

    

     

    
      	
              (b)  

            	
              in
      the case of any Lender which is a fund, any charge, assignment or other
      Security granted to any holders (or trustee or representatives of holders)
      of obligations owed, or securities issued, by that Lender as Security for
      those obligations or securities,

            

    

     

    except
that no such charge, assignment or Security shall:

     

    
      	
              (i)  

            	
              release
      a Lender from any of its obligations under the Finance Documents or
      substitute the beneficiary of the relevant charge, assignment or Security
      for the Lender as a party to any of the Finance Documents;
    or

            

    

     

    
      	
              (ii)  

            	
              require
      any payments to be made by an Obligor or grant to any person any more
      extensive rights than those required to be made or granted to the relevant
      Lender under the Finance Documents.

            

    

     

    
      	
              25.  

            	
              CHANGES
      TO THE OBLIGORS

            

    

     

    
      	
              25.1  

            	
              Assignments
      and transfers by Obligors

            

    

     

    No
Obligor may assign any of its rights or transfer any of its rights or
obligations under the Finance Documents.

     

    
      
        
          
            	
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              25.2  

            	
              Additional
      Guarantors

            

    

     

    
      	
              (a)  

            	
              Subject
      to compliance with the provisions of Clauses 21.15(c) and 21.15(d) of
      Clause 21.15 (“Know your
      customer” checks), the Borrower may request that any of the
      Parent’s Subsidiaries become an Additional Guarantor.  That
      Subsidiary shall become an Additional Guarantor
  if:

            

    

     

    
      	
              (i)  

            	
              the
      Borrower delivers to the Agent a duly completed and executed Accession
      Letter;

            

    

     

    
      	
              (ii)  

            	
              the
      Subsidiary accedes to the Intercreditor Deed as a Guarantor by delivering
      to the Agent a duly completed and executed  Intercreditor
      Accession Deed; and

            

    

     

    
      	
              (iii)  

            	
              the
      Agents has received all of the documents and other evidence listed in Part
      II of Schedule 2 (Conditions Precedent
      Required To Be Delivered
      By An Additional Guarantor) in relation to that Additional
      Guarantor, each in form and substance satisfactory to the
      Agent.

            

    

     

    
      	
              (b)  

            	
              The
      Agent shall notify the Borrower promptly upon being satisfied that it has
      received (in form and substance satisfactory to it) all the documents and
      other evidence listed in Part II of Schedule 2 (Conditions Precedent Required
      To Be Delivered By An Additional
  Guarantor).

            

    

     

    
      	
              25.3  

            	
              Repetition
      of Representations

            

    

     

    Delivery
of an Accession Letter constitutes confirmation by the relevant Subsidiary that
the Repeating Representations are true and correct in relation to it as at the
date of delivery as if made by reference to the facts and circumstances then
existing.

     

    
      
        
          
            	
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    SECTION
12

     

    THE
FINANCE PARTIES

     

    
      	
              26.  

            	
              ROLE
      OF THE AGENT AND THE MANDATED LEAD
ARRANGERS

            

    

     

    
      	
              26.1  

            	
              Appointment
      of the Agent

            

    

     

    
      	
              (a)  

            	
              Each
      other Finance Party (other than the Security Trustee) appoints the Agent
      to act as its agent under and in connection with the Finance
      Documents.

            

    

     

    
      	
              (b)  

            	
              Each
      other Finance Party authorises the Agent to exercise the rights, powers,
      authorities and discretions specifically given to the Agent under or in
      connection with the Finance Documents together with any other incidental
      rights, powers, authorities and
discretions.

            

    

     

    
      	
              26.2  

            	
              Duties
      of the Agent

            

    

     

    
      	
              (a)  

            	
              Subject
      to paragraph (b) below, the Agent shall promptly forward to a Party the
      original or a copy of any document which is delivered to the Agent for
      that Party by any other Party.

            

    

     

    
      	
              (b)  

            	
              Without
      prejudice to Clause 24.7 (Copy of Transfer Certificate
      or Assignment Agreement to Borrower), paragraph (a) above shall not
      apply to any Transfer Certificate or to any Assignment
      Agreement.

            

    

     

    
      	
              (c)  

            	
              Except
      where a Finance Document specifically provides otherwise, the Agent is not
      obliged to review or check the adequacy, accuracy or completeness of any
      document it forwards to another
Party.

            

    

     

    
      	
              (d)  

            	
              If
      the Agent receives notice from a Party referring to this Agreement,
      describing a Default and stating that the circumstance described is a
      Default, it shall promptly notify the other Finance
    Parties.

            

    

     

    
      	
              (e)  

            	
              If
      the Agent is aware of the non-payment of any principal, interest,
      commitment fee or other fee payable to a Finance Party (other than the
      Agent, the Mandated Lead Arrangers or the Security Trustee) under this
      Agreement it shall promptly notify the other Finance
    Parties.

            

    

     

    
      	
              (f)  

            	
              The
      Agent’s duties under the Finance Documents are solely mechanical and
      administrative in nature.

            

    

     

    
      	
              (g)  

            	
              The
      Agent shall promptly forward to the Security Trustee a copy of all notices
      issued pursuant to Clause 23.23 (Acceleration).

            

    

     

    
      	
              26.3  

            	
              Role
      of the Mandated Lead Arrangers

            

    

     

    Except as
specifically provided in the Finance Documents, the Mandated Lead Arrangers have
no obligations of any kind to any other Party under or in connection with any
Finance Document.

     

    
      
        
          
            	
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              26.4  

            	
              No
      fiduciary duties

            

    

     

    
      	
              (a)  

            	
              Nothing
      in this Agreement constitutes the Agent or the Mandated Lead Arrangers as
      a trustee or fiduciary of any other
person.

            

    

     

    
      	
              (b)  

            	
              Neither
      the Agent nor the Mandated Lead Arrangers shall be bound to account to any
      Lender for any sum or the profit element of any sum received by it for its
      own account.

            

    

     

    
      	
              26.5  

            	
              Business
      with the Group

            

    

     

    The Agent
and the Mandated Lead Arrangers may accept deposits from, lend money to and
generally engage in any kind of banking or other business with any member of the
Group.

     

    
      	
              26.6  

            	
              Rights
      and discretions of the Agent

            

    

     

    
      	
              (a)  

            	
              The
      Agent may rely on:

            

    

     

    
      	
              (i)  

            	
              any
      representation, notice or document believed by it to be genuine, correct
      and appropriately authorised; and

            

    

     

    
      	
              (ii)  

            	
              any
      statement made by a director, authorised signatory or employee of any
      person regarding any matters which may reasonably be assumed to be within
      his knowledge or within his power to
verify.

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (i)  

            	
              no
      Default has occurred (unless it has actual knowledge of a Default arising
      under Clause 23.1 (Non-payment));

            

    

     

    
      	
              (ii)  

            	
              any
      right, power, authority or discretion vested in any Party or the Majority
      Lenders has not been exercised; and

            

    

     

    
      	
              (iii)  

            	
              any
      notice or request made by the Borrower (other than a Utilisation Request)
      is made on behalf of and with the consent and knowledge of the
      Guarantors.

            

    

     

    
      	
              (c)  

            	
              The
      Agent may engage, pay for and rely on the advice or services of any
      lawyers, accountants, surveyors or other
  experts.

            

    

     

    
      	
              (d)  

            	
              The
      Agent may act in relation to the Finance Documents through its personnel
      and agents.

            

    

     

    
      	
              (e)  

            	
              The
      Agent may disclose to any other Party any information it reasonably
      believes it has received as Agent under this
  Agreement.

            

    

     

    
      
        
          
            	
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              (f)  

            	
              Notwithstanding
      any other provision of any Finance Document to the contrary, neither the
      Agent nor the Mandated Lead Arrangers are obliged to do or omit to do
      anything if it would or might in its reasonable opinion constitute a
      breach of any law or regulation or a breach of a fiduciary duty or duty of
      confidentiality.

            

    

     

    
      	
              26.7  

            	
              Majority
      Lenders’ instructions

            

    

     

    
      	
              (a)  

            	
              Unless
      a contrary indication appears in a Finance Document, the Agent shall (i)
      exercise any right, power, authority or discretion vested in it as Agent
      in accordance with any instructions given to it by the Majority Lenders
      (or, if so instructed by the Majority Lenders, refrain from exercising any
      right, power, authority or discretion vested in it as Agent) and (ii) not
      be liable for any act (or omission) if it acts (or refrains from taking
      any action) in accordance with an instruction of the Majority
      Lenders.

            

    

     

    
      	
              (b)  

            	
              Unless
      a contrary indication appears in a Finance Document, any instructions
      given by the Majority Lenders will be binding on all the Finance Parties
      other than the Security Trustee.

            

    

     

    
      	
              (c)  

            	
              The
      Agent may refrain from acting in accordance with the instructions of the
      Majority Lenders (or, if appropriate, the Lenders) until it has received
      such security as it may require for any cost, loss or liability (together
      with any associated VAT) which it may incur in complying with the
      instructions.

            

    

     

    
      	
              (d)  

            	
              In
      the absence of instructions from the Majority Lenders, (or, if
      appropriate, the Lenders) the Agent may act (or refrain from taking
      action) as it considers to be in the best interest of the
      Lenders.

            

    

     

    
      	
              (e)  

            	
              The
      Agent is not authorised to act on behalf of a Lender (without first
      obtaining that Lender’s consent) in any legal or arbitration proceedings
      relating to any Finance Document.

            

    

     

    
      	
              26.8  

            	
              Responsibility
      for documentation

            

    

     

    Neither
the Agent nor the Mandated Lead Arrangers are responsible for:

     

    
      	
              (a)  

            	
              the
      adequacy, accuracy and/or completeness of any information (whether oral or
      written) provided by the Agent, the Mandated Lead Arrangers, an Obligor or
      any other person given in or in connection with any Finance Document, the
      Information Memorandum or the transactions contemplated by the Finance
      Documents; or

            

    

     

    
      	
              (b)  

            	
              the
      legality, validity, effectiveness, adequacy or enforceability of any
      Finance Document or the Transaction Security or any other agreement,
      arrangement or document entered into, made or executed in anticipation of
      or in connection with any Finance Document or the Transaction Security;
      or

            

    

     

    
      
        
          
            	
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              (c)  

            	
              any
      determination as to whether any information provided or to be provided to
      any Finance Party is non-public information the use of which may be
      regulated or prohibited by applicable law or regulation relating to
      insider dealing or otherwise.

            

    

     

    
      	
              26.9  

            	
              Exclusion
      of liability

            

    

     

    
      	
              (a)  

            	
              Without
      limiting paragraph (b) below (and without prejudice to the provisions of
      paragraph (e) of Clause 29.10 (Disruption to Payment Systems
      etc.), the Agent will not be liable (including, without limitation,
      for negligence or any other category of liability whatsoever) for any
      action taken by it under or in connection with any Finance Document or the
      Transaction Security, unless directly caused by its gross negligence or
      wilful misconduct.

            

    

     

    
      	
              (b)  

            	
              No
      Party (other than the Agent) may take any proceedings against any officer,
      employee or agent of the Agent in respect of any claim it might have
      against the Agent or in respect of any act or omission of any kind by that
      officer, employee or agent in relation to any Finance Document and any
      officer, employee or agent of the Agent may rely on this Clause subject to
      Clause 1.5 (Third Party
      Rights) and the provisions of the Third Parties
  Act.

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

            	
              Nothing
      in this Agreement shall oblige the Agent or the Mandated Lead Arrangers to
      carry out any “know your customer” or other checks in relation to any
      person on behalf of any Lender and each Lender confirms to the Agent and
      the Mandated Lead Arrangers that it is solely responsible for any such
      checks it is required to carry out and that it may not rely on any
      statement in relation to such checks made by the Agent or the Mandated
      Lead Arrangers.

            

    

     

    
      	
              26.10  

            	
              Lenders’
      indemnity to the Agent

            

    

     

    Each
Lender shall (in proportion to its share of the Total Commitments or, if the
Total Commitments are then zero, to its share of the Total Commitments
immediately prior to their reduction to zero) indemnify the Agent, within three
Business Days of demand, against any cost, loss or liability (including, without
limitation, for negligence or any other category of liability whatsoever)
incurred by the Agent (otherwise than by reason of the Agent’s gross negligence
or wilful misconduct) (or, in the case of any cost, loss or liability pursuant
to Clause 29.10 (Disruption to
Payment Systems etc.) notwithstanding the Agent’s negligence, gross
negligence or any other category of liability whatsoever but not including any
claim based on the fraud of the Agent) in acting as Agent under the Finance
Documents (unless the Agent has been reimbursed by an Obligor pursuant to a
Finance Document).

     

    
      
        
          
            	
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              26.11  

            	
              Resignation
      of the Agent

            

    

     

    
      	
              (a)  

            	
              The
      Agent may resign and appoint one of its Affiliates acting through an
      office in the United Kingdom as successor by giving notice to the other
      Finance Parties and the Borrower.

            

    

     

    
      	
              (b)  

            	
              Alternatively
      the Agent may resign by giving 30 days’ notice to the other Finance
      Parties and the Borrower, in which case the Majority Lenders (after
      consultation with the Borrower) may appoint a successor
    Agent.

            

    

     

    
      	
              (c)  

            	
              If
      the Majority Lenders have not appointed a successor Agent in accordance
      with paragraph (b) above within 20 days after notice of resignation was
      given, the retiring Agent (after consultation with the Borrower) may
      appoint a successor Agent.

            

    

     

    
      	
              (d)  

            	
              The
      retiring Agent shall, at its own cost, make available to the successor
      Agent such documents and records and provide such assistance as the
      successor Agent may reasonably request for the purposes of performing its
      functions as Agent under the Finance
Documents.

            

    

     

    
      	
              (e)  

            	
              The
      Agent’s resignation notice shall only take effect upon the appointment of
      a successor.

            

    

     

    
      	
              (f)  

            	
              Upon
      the appointment of a successor, the retiring Agent shall be discharged
      from any further obligation in respect of the Finance Documents but shall
      remain entitled to the benefit of this Clause 26.  Any successor
      and each of the other Parties shall have the same rights and obligations
      amongst themselves as they would have had if such successor had been an
      original Party.

            

    

     

    
      	
              (g)  

            	
              After
      consultation with the Borrower, the Majority Lenders may, by notice to the
      Agent, require it to resign in accordance with paragraph (b)
      above.  In this event, the Agent shall resign in accordance with
      paragraph (b) above.

            

    

     

    
      	
              26.12  

            	
              Resignation
      of the Technical Bank

            

    

     

    
      	
              (a)  

            	
              The
      Technical Bank may resign and appoint one of its Affiliates acting through
      an office in the United Kingdom as successor by giving notice to the Agent
      and the Borrower.

            

    

     

    
      	
              (b)  

            	
              Alternatively
      the Technical Bank may resign by giving 30 days’ notice to the Agent and
      the Borrower, in which case the Majority Lenders (after consultation with
      the Borrower) may appoint a successor Technical
  Bank.

            

    

     

    
      	
              (c)  

            	
              If
      the Majority Lenders have not appointed a successor Technical Bank in
      accordance with paragraph (b) above within 20 days after notice of
      resignation was given, the retiring Technical Bank (after consultation
      with the Borrower) may appoint a successor Technical
  Bank.

            

    

     

    
      
        
          
            	
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              (d)  

            	
              The
      retiring Technical Bank shall, at its own cost, make available to the
      successor Technical Bank such documents and records and provide such
      assistance as the successor Agent may reasonably request for the purposes
      of performing its functions as Agent under the Finance
      Documents.

            

    

     

    
      	
              (e)  

            	
              The
      Technical Bank’s resignation notice shall only take effect upon the
      appointment of a successor.

            

    

     

    
      	
              (f)  

            	
              Upon
      the appointment of a successor, the retiring Technical Bank shall be
      discharged from any further obligation in respect of the Finance Documents
      but shall remain entitled to the benefit of this Clause 26.  Any
      successor and each of the other Parties shall have the same rights and
      obligations amongst themselves as they would have had if such successor
      had been an original Party.

            

    

     

    
      	
              (g)  

            	
              After
      consultation with the Borrower, the Majority Lenders may, by notice to the
      Technical Bank, require it to resign in accordance with paragraph (b)
      above.  In this event, the Technical Bank shall resign in
      accordance with paragraph (b)
above.

            

    

     

    
      	
              26.13  

            	
              Confidentiality

            

    

     

    
      	
              (a)  

            	
              In
      acting as agent for the Finance Parties, the Agent shall be regarded as
      acting through its agency division which shall be treated as a separate
      entity from any other of its divisions or
  departments.

            

    

     

    
      	
              (b)  

            	
              If
      information is received by another division or department of the Agent, it
      may be treated as confidential to that division or department and the
      Agent shall not be deemed to have notice of
it.

            

    

     

    
      	
              26.14  

            	
              Relationship
      with the Lenders

            

    

     

    
      	
              (a)  

            	
              The
      Agent may treat the person shown in its records as Lender at the opening
      of business (in the place of the Agent’s principal office as notified to
      the Finance Parties from time to time) as the Lender acting through its
      Facility Office:

            

    

     

    
      	
              (i)  

            	
              entitled
      to or liable for any payment due under any Finance Document on that day;
      and

            

    

     

    
      	
              (ii)  

            	
              entitled
      to receive and act upon any notice, request, document or communication or
      make any decision or determination under any Finance Document made or
      delivered on that day,

            

    

     

    unless it
has received not less than five (5) Business Days’ prior notice from that Lender
to the contrary in accordance with the terms of this Agreement.

     

    
      	
              (b)  

            	
              Each
      Lender shall supply the Agent with any information required by the Agent
      in order to calculate the Mandatory Cost in accordance with Schedule 6
      (Mandatory Cost
      formulae).

            

    

     

    
      
        
          
            	
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              (c)  

            	
              Any
      Lender may by notice to the Agent appoint a person to receive on its
      behalf all notices, communications, information and documents to be made
      or despatched to that Lender under the Finance Documents.  Such
      notice shall contain the address, fax number and (where communication by
      electronic mail or other electronic means is permitted under Clause 31.5
      (Electronic
      communication)) electronic mail address and/or any other
      information required to enable the sending and receipt of information by
      that means (and, in each case, the department or officer, if any, for
      whose attention communication is to be made) and be treated as a
      notification of a substitute address, fax number, electronic mail address,
      department and officer by that Lender for the purposes of Clause 31.2
      (Addresses) and
      paragraph (a)(iii) of Clause 31.5 (Electronic
      communication) and the Agent shall be entitled to treat such person
      as the person entitled to receive all such notices, communications,
      information and documents as though that person were that
      Lender.

            

    

     

    
      	
              (d)  

            	
              Each
      Secured Party shall supply the Agent with any information that the
      Security Trustee may reasonably specify (through the Agent) as being
      necessary or desirable to enable the Security Trustee to perform its
      functions as security trustee.  Each Lender shall deal with the
      Security Trustee exclusively through the Agent and shall not deal directly
      with the Security Trustee.

            

    

     

    
      	
              26.15  

            	
              Credit
      appraisal by the Lenders

            

    

     

    Without
affecting the responsibility of any Obligor for information supplied by it or on
its behalf in connection with any Finance Document, each Lender confirms to the
Agent and the Mandated Lead Arrangers that it has been, and will continue to be,
solely responsible for making its own independent appraisal and investigation of
all risks arising under or in connection with any Finance Document including but
not limited to:

     

    
      	
              (a)  

            	
              the
      financial condition, creditworthiness, condition, affairs, status and
      nature of each member of the Group;

            

    

     

    
      	
              (b)  

            	
              the
      legality, validity, effectiveness, adequacy or enforceability of any
      Finance Document and the Transaction Security and any other agreement,
      arrangement or document entered into, made or executed in anticipation of,
      under or in connection with any Finance Document or the Transaction
      Security;

            

    

     

    
      	
              (c)  

            	
              whether
      that Lender has recourse, and the nature and extent of that recourse,
      against any Party or any of its respective assets under or in connection
      with any Finance Document, the Transaction Security, the transactions
      contemplated by the Finance Documents or any other agreement, arrangement
      or document entered into, made or executed in anticipation of, under or in
      connection with any Finance
Document;

            

    

     

    
      
        
          
            	
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              (d)  

            	
              the
      adequacy, accuracy and/or completeness of the Information Memorandum and
      any other information provided by the Agent, the Security Trustee, any
      Party or by any other person under or in connection with any Finance
      Document, the transactions contemplated by the Finance Documents or any
      other agreement, arrangement or document entered into, made or executed in
      anticipation of, under or in connection with any Finance Document;
      and

            

    

     

    
      	
              (e)  

            	
              the
      right or title of any person in or to, or the value or sufficiency of any
      part of the Charged Property, the priority of any of the Transaction
      Security or the existence of any Security affecting the Charged
      Property,

            

    

     

    and each
Lender warrants to the Agent and the Mandated Lead Arrangers that it has not
relied on and will not at any time rely on the Agent or the Mandated Lead
Arrangers in respect of any of these matters.

     

    
      	
              26.16  

            	
              Reference
      Banks

            

    

     

    If a
Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it
is an Affiliate) ceases to be a Lender, the Agent shall (in consultation with
the Borrower) appoint another Lender or an Affiliate of a Lender to replace that
Reference Bank.

     

    
      	
              26.17  

            	
              Agent’s
      Management Time

            

    

     

    Any
amount payable to the Agent under Clause 16.3 (Indemnity to the Agent),
Clause 18 (Costs and
expenses) and Clause 26.10 (Lenders’ indemnity to the
Agent) shall include the cost of utilising the Agent’s management time or
other resources and will be calculated on the basis of such reasonable daily or
hourly rates as the Agent may notify to the Borrower and the Lenders, and is in
addition to any fee paid or payable to the Agent under Clause 13 (Fees).

     

    
      	
              26.18  

            	
              Deduction
      from amounts payable by the Agent

            

    

     

    If any
Party owes an amount to the Agent under the Finance Documents the Agent may,
after giving notice to that Party, deduct an amount not exceeding that amount
from any payment to that Party which the Agent would otherwise be obliged to
make under the Finance Documents and apply the amount deducted in or towards
satisfaction of the amount owed.  For the purposes of the Finance
Documents that Party shall be regarded as having received any amount so
deducted.

     

    
      	
              27.  

            	
              CONDUCT
      OF BUSINESS BY THE FINANCE PARTIES

            

    

     

    No
provision of this Agreement will:

     

    
      	
              (a)  

            	
              interfere
      with the right of any Finance Party to arrange its affairs (tax or
      otherwise) in whatever manner it thinks
fit;

            

    

     

    
      	
              (b)  

            	
              oblige
      any Finance Party to investigate or claim any credit, relief, remission or
      repayment available to it or the extent, order and manner of any claim;
      or

            

    

     

    
      
        
          
            	
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              (c)  

            	
              oblige
      any Finance Party to disclose any information relating to its affairs (tax
      or otherwise) or any computations in respect of
  Tax.

            

    

     

    
      	
              28.  

            	
              SHARING
      AMONG THE FINANCE PARTIES

            

    

     

    
      	
              28.1  

            	
              Payments
      to Finance Parties

            

    

     

    If a
Finance Party (a “Recovering
Finance Party”) receives or recovers any amount from an Obligor other
than in accordance with Clause 29 (Payment mechanics) (a “Recovered Amount”) and applies
that amount to a payment due under the Finance Documents then:

     

    
      	
              (a)  

            	
              the
      Recovering Finance Party shall, within three Business Days, notify details
      of the receipt or recovery, to the
Agent;

            

    

     

    
      	
              (b)  

            	
              the
      Agent shall determine whether the receipt or recovery is in excess of the
      amount the Recovering Finance Party would have been paid had the receipt
      or recovery been received or made by the Agent and distributed in
      accordance with Clause 29 (Payment mechanics),
      without taking account of any Tax which would be imposed on the Agent in
      relation to the receipt, recovery or distribution;
  and

            

    

     

    
      	
              (c)  

            	
              the
      Recovering Finance Party shall, within three Business Days of demand by
      the Agent, pay to the Agent an amount (the “Sharing Payment”) equal
      to such receipt or recovery less any amount which the Agent determines may
      be retained by the Recovering Finance Party as its share of any payment to
      be made, in accordance with Clause 29.5 (Partial
      payments).

            

    

     

    
      	
              28.2  

            	
              Redistribution
      of payments

            

    

     

    The Agent
shall treat the Sharing Payment as if it had been paid by the relevant Obligor
and distribute it between the Finance Parties (other than the Recovering Finance
Party) (the “Sharing Finance
Parties”) in accordance with Clause 29.5 (Partial payments) towards the
obligations of that Obligor to the Sharing Finance Parties.

     

    
      	
              28.3  

            	
              Recovering
      Finance Party’s rights

            

    

     

    On a
distribution by the Agent under Clause 28.2 (Redistribution of payments)
of a payment received by a Recovering Finance Party from an Obligor as between
the relevant Obligor and the Recovering Finance Party, an amount of the
Recovered Amount equal to the Sharing Payment will be treated as not having been
paid by that Obligor.

     

    
      	
              28.4  

            	
              Reversal
      of redistribution

            

    

     

    If any
part of the Sharing Payment received or recovered by a Recovering Finance Party
becomes repayable and is repaid by that Recovering Finance Party,
then:

     

    
      
        
          
            	
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              (a)  

            	
              each
      Sharing Finance Party shall, upon request of the Agent, pay to the Agent
      for the account of that Recovering Finance Party an amount equal to the
      appropriate part of its share of the Sharing Payment (together with an
      amount as is necessary to reimburse that Recovering Finance Party for its
      proportion of any interest on the Sharing Payment which that Recovering
      Finance Party is required to pay) (the “Redistributed Amount”);
      and

            

    

     

    
      	
              (b)  

            	
              as
      between the relevant Obligor and each relevant Sharing Finance Party, an
      amount equal to the relevant Redistributed Amount will be treated as not
      having been paid by that Obligor.

            

    

     

    
      	
              28.5  

            	
              Exceptions

            

    

     

    
      	
              (a)  

            	
              This
      Clause 28 shall not apply to the extent that the Recovering Finance Party
      would not, after making any payment pursuant to this Clause, have a valid
      and enforceable claim against the relevant
  Obligor.

            

    

     

    
      	
              (b)  

            	
              A
      Recovering Finance Party is not obliged to share with any other Finance
      Party any amount which the Recovering Finance Party has received or
      recovered as a result of taking legal or arbitration proceedings,
      if:

            

    

     

    
      	
              (i)  

            	
              it
      notified that other Finance Party of the legal or arbitration proceedings;
      and

            

    

     

    
      	
              (ii)  

            	
              that
      other Finance Party had an opportunity to participate in those legal or
      arbitration proceedings but did not do so as soon as reasonably
      practicable having received notice and did not take separate legal or
      arbitration proceedings.

            

    

     

    
      
        
          
            	
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    SECTION
13

     

    ADMINISTRATION

     

    
      	
              29.  

            	
              PAYMENT
      MECHANICS

            

    

     

    
      	
              29.1  

            	
              Payments
      to the Agent

            

    

     

    
      	
              (a)  

            	
              On
      each date on which an Obligor or a Lender is required to make a payment
      under a Finance Document, that Obligor or Lender shall make the same
      available to the Agent (unless a contrary indication appears in a Finance
      Document) for value on the due date at the time and in such funds
      specified by the Agent as being customary at the time for settlement of
      transactions in the relevant currency in the place of
    payment.

            

    

     

    
      	
              (b)  

            	
              Payment
      shall be made to such account in the principal financial centre of the
      country of that currency with such bank as the Agent
      specifies.

            

    

     

    
      	
              29.2  

            	
              Distributions
      by the Agent

            

    

     

    Each
payment received by the Agent under the Finance Documents for another Party
shall, subject to Clause 29.3 (Distributions to an Obligor),
Clause 29.4 (Clawback)
and Clause 26.18 (Deduction
from amounts payable by the Agent) be made available by the Agent as soon
as practicable after receipt to the Party entitled to receive payment in
accordance with this Agreement (in the case of a Lender, for the account of its
Facility Office), to such account as that Party may notify to the Agent by not
less than five (5) Business Days’ notice with a bank in the principal financial
centre of the country of that currency.

     

    
      	
              29.3  

            	
              Distributions
      to an Obligor

            

    

     

    The Agent
may (with the consent of the Obligor or in accordance with Clause 30 (Set-off)) apply any amount
received by it for that Obligor in or towards payment (on the date and in the
currency and funds of receipt) of any amount due from that Obligor under the
Finance Documents or in or towards purchase of any amount of any currency to be
so applied.

     

    
      	
              29.4  

            	
              Clawback

            

    

     

    
      	
              (a)  

            	
              Where
      a sum is to be paid to the Agent under the Finance Documents for another
      Party, the Agent is not obliged to pay that sum to that other Party (or to
      enter into or perform any related exchange contract) until it has been
      able to establish to its satisfaction that it has actually received that
      sum.

            

    

     

    
      	
              (b)  

            	
              If
      the Agent pays an amount to another Party and it proves to be the case
      that the Agent had not actually received that amount, then the Party to
      whom that amount (or the proceeds of any related exchange contract) was
      paid by the Agent shall on demand refund the same to the Agent together
      with interest on that amount from the date of payment to the date of
      receipt by the Agent, calculated by the Agent to reflect its cost of
      funds.

            

    

     

    
      
        
          
            	
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              29.5  

            	
              Partial
      payments

            

    

     

    
      	
              (a)  

            	
              If
      the Agent receives a payment that is insufficient to discharge all the
      amounts then due and payable by an Obligor under the Finance Documents,
      the Agent shall apply that payment towards the obligations of that Obligor
      under the Finance Documents in the following
  order:

            

    

     

    
      	
              (i)  

            	
              first,
      in or towards payment pro rata of any unpaid
      fees, costs and expenses of the Agent, the Security Trustee (including of
      any Receiver or Delegate) and the Mandated Lead Arrangers under the
      Finance Documents;

            

    

     

    
      	
              (ii)  

            	
              secondly,
      in or towards payment pro rata of any accrued
      interest, fee or commission due but unpaid under this
      Agreement;

            

    

     

    
      	
              (iii)  

            	
              thirdly,
      in or towards payment pro rata of any
      principal due but unpaid under this Agreement;
  and

            

    

     

    
      	
              (iv)  

            	
              fourthly,
      in or towards payment pro rata of any other
      sum due but unpaid under the Finance
Documents.

            

    

     

    
      	
              (b)  

            	
              The
      Agent shall, if so directed by the Majority Lenders, vary the order set
      out in paragraphs (a)(ii) to (iv)
above.

            

    

     

    
      	
              (c)  

            	
              Paragraphs
      (a) and (b) above will override any appropriation made by an
      Obligor.

            

    

     

    
      	
              29.6  

            	
              No
      set-off by Obligors

            

    

     

    All
payments to be made by an Obligor under the Finance Documents shall be
calculated and be made without (and free and clear of any deduction for) set-off
or counterclaim.

     

    
      	
              29.7  

            	
              Business
      Days

            

    

     

    
      	
              (a)  

            	
              Any
      payment which is due to be made on a day that is not a Business Day shall
      be made on the next Business Day in the same calendar month (if there is
      one) or the preceding Business Day (if there is
  not).

            

    

     

    
      	
              (b)  

            	
              During
      any extension of the due date for payment of any principal or Unpaid Sum
      under this Agreement interest is payable on the principal or Unpaid Sum at
      the rate payable on the original due
date.

            

    

     

    
      	
              29.8  

            	
              Currency
      of account

            

    

     

    
      	
              (a)  

            	
              Subject
      to paragraphs (b) and (c) below, dollars is the currency of account and
      payment for any sum from an Obligor under any Finance
      Document.

            

    

     

    
      	
              (b)  

            	
              Each
      payment in respect of costs, expenses or Taxes shall be made in the
      currency in which the costs, expenses or Taxes are
    incurred.

            

    

     

    
      
        
          
            	
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              (c)  

            	
              Any
      amount expressed to be payable in a currency other than dollars shall be
      paid in that other currency.

            

    

     

    
      	
              29.9  

            	
              Change
      of currency

            

    

     

    
      	
              (a)  

            	
              Unless
      otherwise prohibited by law, if more than one currency or currency unit
      are at the same time recognised by the central bank of any country as the
      lawful currency of that country,
then:

            

    

     

    
      	
              (i)  

            	
              any
      reference in the Finance Documents to, and any obligations arising under
      the Finance Documents in, the currency of that country shall be translated
      into, or paid in, the currency or currency unit of that country designated
      by the Agent (after consultation with the Borrower);
  and

            

    

     

    
      	
              (ii)  

            	
              any
      translation from one currency or currency unit to another shall be at the
      official rate of exchange recognised by the central bank for the
      conversion of that currency or currency unit into the other, rounded up or
      down by the Agent (acting
reasonably).

            

    

     

    
      	
              (b)  

            	
              If
      a change in any currency of a country occurs, this Agreement will, to the
      extent the Agent (acting reasonably and after consultation with the
      Borrower) specifies to be necessary, be amended to comply with any
      generally accepted conventions and market practice in the Relevant
      Interbank Market and otherwise to reflect the change in
      currency.

            

    

     

    
      	
              29.10  

            	
              Disruption
      to Payment Systems etc.

            

    

     

    If either
the Agent determines (in its discretion) that a Disruption Event has occurred or
the Agent is notified by the Borrower that a Disruption Event has
occurred:

     

    
      	
              (a)  

            	
              the
      Agent may, and shall if requested to do so by the Borrower, consult with
      the Borrower with a view to agreeing with the Borrower such changes to the
      operation or administration of the Facility as the Agent may deem
      necessary in the circumstances;

            

    

     

    
      	
              (b)  

            	
              the
      Agent shall not be obliged to consult with the Borrower in relation to any
      changes mentioned in paragraph (a) if, in its opinion, it is not
      practicable to do so in the circumstances and, in any event, shall have no
      obligation to agree to such
changes;

            

    

     

    
      	
              (c)  

            	
              the
      Agent may consult with the Finance Parties in relation to any changes
      mentioned in paragraph (a) but shall not be obliged to do so if, in its
      opinion, it is not practicable to do so in the
    circumstances;

            

    

     

    
      	
              (d)  

            	
              any
      such changes agreed upon by the Agent and the Borrower shall (whether or
      not it is finally determined that a Disruption Event has occurred) be
      binding upon the Parties as an amendment to (or, as the case may be,
      waiver of) the terms of the Finance Documents notwithstanding the
      provisions of Clause 35 (Amendments and
      Waivers);

            

    

     

    
      
        
          
            	
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              (e)  

            	
              the
      Agent shall not be liable for any damages, costs or losses
      whatsoever  (including, without limitation for negligence, gross
      negligence or any other category of liability whatsoever but not including
      any claim based on the fraud of the Agent) arising as a result of its
      taking, or failing to take, any actions pursuant to or in connection with
      this Clause 29.10; and

            

    

     

    
      	
              (f)  

            	
              the
      Agent shall notify the Finance Parties of all changes agreed pursuant to
      paragraph (d) above.

            

    

     

    
      	
              30.  

            	
              SET-OFF

            

    

     

    A Finance
Party may set off any matured obligation due from an Obligor under the Finance
Documents (to the extent beneficially owned by that Finance Party) against any
matured obligation owed by that Finance Party to that Obligor, regardless of the
place of payment, booking branch or currency of either obligation.  If
the obligations are in different currencies, the Finance Party may convert
either obligation at a market rate of exchange in its usual course of business
for the purpose of the set-off.

     

    
      	
              31.  

            	
              NOTICES

            

    

     

    
      	
              31.1  

            	
              Communications
      in writing

            

    

     

    Any
communication to be made under or in connection with the Finance Documents shall
be made in writing and, unless otherwise stated, may be made by fax or
letter.

     

    
      	
              31.2  

            	
              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 the Finance
Documents is:

     

    
      	
              (a)  

            	
              in
      the case of the Borrower, that identified with its name
    below;

            

    

     

    
      	
              (b)  

            	
              in
      the case of each Lender or any other Obligor, that notified in writing to
      the Agent on or prior to the date on which it becomes a Party;
      and

            

    

     

    
      	
              (c)  

            	
              in
      the case of the Agent and Security Trustee, that identified with its name
      below,

            

    

     

    or any
substitute address or fax number or department or officer as the Party may
notify to the Agent (or the Agent may notify to the other Parties, if a change
is made by the Agent) by not less than five (5) Business Days’
notice.

     

    
      	
              31.3  

            	
              Delivery

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (i)  

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

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              if
      by way of letter, when it has been left at the relevant address or five
      (5) 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 31.2 (Addresses), if addressed to
that department or officer.

     

    
      	
              (b)  

            	
              Any
      communication or document to be made or delivered to the Agent or to the
      Security Trustee will be effective only when actually received by the
      Agent or the Security Trustee and then only if it is expressly marked for
      the attention of the department or officer identified with the Agent’s or
      the Security Trustee’s signature below (or any substitute department or
      officer as the Agent shall specify for this
  purpose).

            

    

     

    
      	
              (c)  

            	
              All
      notices from or to an Obligor shall be sent through the
    Agent.

            

    

     

    
      	
              (d)  

            	
              Any
      communication or document made or delivered to the Borrower in accordance
      with this Clause will be deemed to have been made or delivered to the each
      of the Guarantors.

            

    

     

    
      	
              (e)  

            	
              All
      notices to a Lender from the Security Trustee shall be sent through the
      Agent.

            

    

     

    
      	
              31.4  

            	
              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 31.2 (Addresses) or changing its
own address or fax number, the Agent shall notify the other
Parties.

     

    
      	
              31.5  

            	
              Electronic
      communication

            

    

     

    
      	
              (a)  

            	
              Any
      communication to be made between the Agent or the Security Trustee and a
      Lender or the Obligors under or in connection with the Finance Documents
      may be made by electronic mail or other electronic means, if the Agent,
      the Security Trustee and the relevant Lender or
  Obligor:

            

    

     

    
      	
              (i)  

            	
              agree
      that, unless and until notified to the contrary, this is to be an accepted
      form of communication;

            

    

     

    
      	
              (ii)  

            	
              notify
      each other in writing of their electronic mail address and/or any other
      information required to enable the sending and receipt of information by
      that means; and

            

    

     

    
      	
              (iii)  

            	
              notify
      each other of any change to their address or any other such information
      supplied by them.

            

    

     

    
      
        
          
            	
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              (b)  

            	
              Any
      electronic communication made between the Agent and a Lender, Obligor or
      the Security Trustee will be effective only when actually received in
      readable form and in the case of any electronic communication made by a
      Lender or Obligor to the Agent or the Security Trustee only if it is
      addressed in such a manner as the Agent or Security Trustee shall specify
      for this purpose.

            

    

     

    
      	
              31.6  

            	
              English
      language

            

    

     

    
      	
              (a)  

            	
              Any
      notice given under or in connection with any Finance Document must be in
      English.

            

    

     

    
      	
              (b)  

            	
              All
      other documents provided under or in connection with any Finance Document
      must be:

            

    

     

    
      	
              (i)  

            	
              in
      English; or

            

    

     

    
      	
              (ii)  

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

            

    

     

    
      	
              32.  

            	
              CALCULATIONS
      AND CERTIFICATES

            

    

     

    
      	
              32.1  

            	
              Accounts

            

    

     

    In any
litigation or arbitration proceedings arising out of or in connection with a
Finance Document, the entries made in the accounts maintained by a Finance Party
are prima facie
evidence of the matters to which they relate.

     

    
      	
              32.2  

            	
              Certificates
      and determinations

            

    

     

    Any
certification or determination by a Finance Party of a rate or amount under any
Finance Document is, in the absence of manifest error, conclusive evidence of
the matters to which it relates.

     

    
      	
              32.3  

            	
              Day
      count convention

            

    

     

    Any
interest, commission or fee accruing under a Finance Document will accrue from
day to day and is calculated on the basis of the actual number of days elapsed
and a year of 360 days or, in any case where the practice in the Relevant
Interbank Market differs, in accordance with that market practice.

     

    
      	
              33.  

            	
              PARTIAL
      INVALIDITY

            

    

     

    If, at
any time, any provision of the Finance Documents is or becomes illegal, invalid
or unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of such provision under the law of any
other jurisdiction will in any way be affected or impaired.

     

    
      
        
          
            	
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              34.  

            	
              REMEDIES
      AND WAIVERS

            

    

     

    No
failure to exercise, nor any delay in exercising, on the part of any Secured
Party or the Mandated Lead Arrangers, any right or remedy under the Finance
Documents shall operate as a waiver of any such right or remedy or constitute an
election to affirm any of the Finance Documents.  No election to
affirm any of the Finance Documents on the part of any Secured Party or the
Mandated Lead Arrangers shall be effective unless it is in
writing.  No single or partial exercise of any right or remedy shall
prevent any further or other exercise or the exercise of any other right or
remedy.  The rights and remedies provided in this Agreement are
cumulative and not exclusive of any rights or remedies provided by
law.

     

    
      	
              35.  

            	
              AMENDMENTS
      AND WAIVERS

            

    

     

    
      	
              35.1  

            	
              Required
      consents

            

    

     

    
      	
              (a)  

            	
              Subject
      to Clause 35.2 (Exceptions) any term of
      the Finance Documents may be amended or waived only with the consent of
      the Majority Lenders and the Obligors and any such amendment or waiver
      will be binding on all Parties.

            

    

     

    
      	
              (b)  

            	
              The
      Agent, or in respect of the Security Documents the Security Trustee, may
      effect, on behalf of any Finance Party, any amendment or waiver permitted
      by this Clause.

            

    

     

    
      	
              35.2  

            	
              Exceptions

            

    

     

    
      	
              (a)  

            	
              An
      amendment or waiver that has the effect of changing or which relates
      to:

            

    

     

    
      	
              (i)  

            	
              the
      definition of “Majority Lenders” in Clause 1.1 (Definitions);

            

    

     

    
      	
              (ii)  

            	
              an
      extension to the date of payment of any amount under the Finance
      Documents;

            

    

     

    
      	
              (iii)  

            	
              a
      reduction in the Margin or a reduction in the amount of any payment of
      principal, interest, fees or commission
payable;

            

    

     

    
      	
              (iv)  

            	
              an
      increase in or an extension of any
Commitment;

            

    

     

    
      	
              (v)  

            	
              a
      change to the Borrower or
Guarantors;

            

    

     

    
      	
              (vi)  

            	
              any
      provision which expressly requires the consent of all the
      Lenders;;

            

    

     

    
      	
              (vii)  

            	
              Clause
      2.2 (Finance Parties’
      rights and obligations), Clause 24 (Changes to the Lenders)
      or this Clause 35;

            

    

     

    
      	
              (viii)  

            	
              the
      nature or scope of the guarantee and indemnity granted under Clause 19
      (Guarantee and
      indemnity); or

            

    

     

    
      
        
          
            	
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              (ix)  

            	
              the
      nature or scope of the Charged Property, the Transaction Security or the
      manner in which the proceeds of enforcement of the Transaction Security
      are distributed,

            

    

     

    shall not
be made without the prior consent of all the Lenders.

     

    
      	
              (b)  

            	
              An
      amendment or waiver which relates to the rights or obligations of the
      Agent, the Security Trustee or the Mandated Lead Arrangers (each in their
      capacity as such) may not be effected without the consent of the Agent,
      the Security Trustee or the Mandated Lead Arrangers as the case may
      be.

            

    

     

    
      	
              36.  

            	
              CONFIDENTIALITY

            

    

     

    
      	
              36.1  

            	
              Confidential
      Information

            

    

     

    Each
Finance Party agrees to keep all Confidential Information confidential and not
to disclose it to anyone, save to the extent permitted by Clause 36.2 (Disclosure of Confidential
Information), and to ensure that all Confidential Information is
protected with security measures and a degree of care that would apply to its
own confidential information.

     

    
      	
              36.2  

            	
              Disclosure
      of Confidential Information

            

    

     

    Any
Finance Party may disclose:

     

    
      	
              (a)  

            	
              to
      any of its Affiliates and Related Funds and any of its or their officers,
      directors, employees, professional advisers, auditors, partners and
      Representatives such Confidential Information as that Finance Party shall
      consider appropriate if any person to whom the Confidential Information is
      to be given pursuant to this paragraph (a) is informed in writing of its
      confidential nature and that some or all of such Confidential Information
      may be price-sensitive information except that there shall be no such
      requirement to so inform if the recipient is subject to professional
      obligations to maintain the confidentiality of the information or is
      otherwise bound by requirements of confidentiality in relation to the
      Confidential Information;

            

    

     

    
      	
              (b)  

            	
              to
      any person:

            

    

     

    
      	
              (i)  

            	
              to
      (or through) whom it assigns or transfers (or may potentially assign or
      transfer) all or any of its rights and/or obligations under one or more
      Finance Documents and to any of that person’s Affiliates, Related Funds,
      Representatives and professional
advisers;

            

    

     

    
      	
              (ii)  

            	
              with
      (or through) whom it enters into (or may potentially enter into), whether
      directly or indirectly, any sub-participation in relation to, or any other
      transaction under which payments are to be made or may be made by
      reference to, one or more Finance Documents and/or one or more Obligors
      and to any of that person’s Affiliates, Related Funds, Representatives and
      professional advisers;

            

    

     

    
      
        
          
            	
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              (iii)  

            	
              appointed
      by any Finance Party or by a person to whom sub paragraph (b)(i) or (ii)
      above applies to receive communications, notices, information or documents
      delivered pursuant to the Finance Documents on its behalf (including,
      without limitation, any person appointed under paragraph (c) of Clause
      26.14 (Relationship with
      the Lenders));

            

    

     

    
      	
              (iv)  

            	
              who
      invests in or otherwise finances (or may potentially invest in or
      otherwise finance), directly or indirectly, any transaction referred to in
      paragraph b(i) or (b)(ii) above;

            

    

     

    
      	
              (v)  

            	
              to
      whom information is required or requested to be disclosed by any court of
      competent jurisdiction or any governmental, banking, taxation or other
      regulatory authority or similar body, the rules of any relevant stock
      exchange or pursuant to any applicable law or
  regulation;

            

    

     

    
      	
              (vi)  

            	
              to
      whom or for whose benefit that Finance Party charges, assigns or otherwise
      creates Security (or may do so) pursuant to Clause 24.8 (Security over Lenders’
      rights);

            

    

     

    
      	
              (vii)  

            	
              to
      whom information is required to be disclosed in connection with, and for
      the purposes of, any litigation, arbitration, administrative or other
      investigations, proceedings or
disputes;

            

    

     

    
      	
              (viii)  

            	
              who
      is a Party; or

            

    

     

    
      	
              (ix)  

            	
              with
      the consent of the Borrower;

            

    

     

    in each
case, such Confidential Information as that Finance Party shall consider
appropriate if:

     

    
      	
              (A)  

            	
              in
      relation to paragraphs (b)(i), (b)(ii) and b(iii) above, the person to
      whom the Confidential Information is to be given has entered into a
      Confidentiality Undertaking except that there shall be no requirement for
      a Confidentiality Undertaking if the recipient is a professional adviser
      and is subject to professional obligations to maintain the confidentiality
      of the Confidential Information;

            

    

     

    
      	
              (B)  

            	
              in
      relation to paragraph (b)(iv) above, the person to whom the Confidential
      Information is to be given has entered into a Confidentiality Undertaking
      or is otherwise bound by requirements of confidentiality in relation to
      the Confidential Information they receive and is informed that some or all
      of such Confidential Information may be price-sensitive
      information;

            

    

     

    
      
        
          
            	
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              (C)  

            	
              in
      relation to paragraphs (b)(v), (b)(vi) and (b)(vii) above, the person to
      whom the Confidential Information is to be given is informed of its
      confidential nature and that some or all of such Confidential Information
      may be price-sensitive information except that there shall be no
      requirement to so inform if, in the opinion of that Finance Party, it is
      not practicable so to do in the
circumstances;

            

    

     

    
      	
              (c)  

            	
              to
      any person appointed by that Finance Party or by a person to whom
      paragraph (b)(i) or (b)(ii) above applies to provide administration or
      settlement services in respect of one or more of the Finance Documents
      including without limitation, in relation to the trading of participations
      in respect of the Finance Documents, such Confidential Information as may
      be required to be disclosed to enable such service provider to provide any
      of the services referred to in this paragraph (c) if the service provider
      to whom the Confidential Information is to be given has entered into a
      confidentiality agreement substantially in the form of the LMA Master
      Confidentiality Undertaking for Use With Administration/Settlement Service
      Providers or such other form of confidentiality undertaking agreed between
      the Borrower and the relevant Finance
Party;

            

    

     

    
      	
              (d)  

            	
              to
      any rating agency (including its professional advisers) such Confidential
      Information as may be required to be disclosed to enable such rating
      agency to carry out its normal rating activities in relation to the
      Finance Documents and/or the
Obligors.

            

    

     

    
      	
              36.3  

            	
              Entire
      agreement

            

    

     

    This
Clause 36 (Confidentiality) constitutes
the entire agreement between the Parties in relation to the obligations of the
Finance Parties under the Finance Documents regarding Confidential Information
and supersedes any previous agreement, whether express or implied, regarding
Confidential Information.

     

    
      	
              36.4  

            	
              Inside
      information

            

    

     

    Each of
the Finance Parties acknowledges that some or all of the Confidential
Information is or may be price-sensitive information and that the use of such
information may be regulated or prohibited by applicable legislation including
securities law relating to insider dealing and market abuse and each of the
Finance Parties undertakes not to use any Confidential Information for any
unlawful purpose.

     

    
      	
              36.5  

            	
              Notification
      of disclosure

            

    

     

    Each of
the Finance Parties agrees (to the extent permitted by law and regulation) to
inform the Borrower:

     

    
      
        
          
            	
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              (a)  

            	
              of
      the circumstances of any disclosure of Confidential Information made
      pursuant to paragraph (b)(v) of Clause 36.2 (Disclosure of Confidential
      Information) except where such disclosure is made to any of the
      persons referred to in that paragraph during the ordinary course of its
      supervisory or regulatory function;
and

            

    

     

    
      	
              (b)  

            	
              upon
      becoming aware that Confidential Information has been disclosed in breach
      of this Clause 36 (Confidentiality).

            

    

     

    
      	
              36.6  

            	
              Continuing
      obligations

            

    

     

    The
obligations in this Clause 36 (Confidentiality) are
continuing and, in particular, shall survive and remain binding on each Finance
Party for a period of twelve months from the earlier of:

     

    
      	
              (a)  

            	
              the
      date on which all amounts payable by the Obligors under or in connection
      with this Agreement have been paid in full and all Commitments have been
      cancelled or otherwise cease to be available;
  and

            

    

     

    
      	
              (b)  

            	
              the
      date on which such Finance Party otherwise ceases to be a Finance
      Party.

            

    

     

    
      	
              37.  

            	
              COUNTERPARTS

            

    

     

    Each
Finance Document may be executed in any number of counterparts, and this has the
same effect as if the signatures on the counterparts were on a single copy of
the Finance Document.

     

    
      
        
          
            	
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    SECTION
14

     

    GOVERNING
LAW AND ENFORCEMENT

     

    
      	
              38.  

            	
              GOVERNING
      LAW

            

    

     

    This
Agreement and any non-contractual obligations arising out of or in connection
with it is governed by English law.

     

    
      	
              39.  

            	
              ENFORCEMENT

            

    

     

    
      	
              39.1  

            	
              Jurisdiction

            

    

     

    
      	
              (a)  

            	
              The
      courts of England have exclusive jurisdiction to settle any dispute
      arising out of or in connection with this Agreement (including a dispute
      relating to the existence, validity or termination of this Agreement or
      the consequences of its nullity or any non-contractual obligations arising
      out of or in connection with this Agreement) (a “Dispute”).

            

    

     

    
      	
              (b)  

            	
              The
      Parties agree that the courts of England are the most appropriate and
      convenient courts to settle Disputes and accordingly no Party will argue
      to the contrary.

            

    

     

    
      	
              (c)  

            	
              This
      Clause 39.1 (Jurisdiction) is for
      the benefit of the Finance Parties only.  As a result, and
      notwithstanding paragraph (a) of Clause 39.1, any Finance Party may take
      proceedings relating to a Dispute in any other courts with
      jurisdiction.  To the extent allowed by law, the Finance Parties
      may take concurrent proceedings in any number of
      jurisdictions.

            

    

     

    
      	
              39.2  

            	
              Service
      of process

            

    

     

    Without
prejudice to any other mode of service allowed under any relevant law, each
Obligor (other than an Obligor incorporated in England and Wales):

     

    
      	
              (a)  

            	
              irrevocably
      appoints Law Debenture Corporate Services Limited as its agent for service
      of process in relation to any proceedings before the English courts in
      connection with any Finance Document;
and

            

    

     

    
      	
              (b)  

            	
              agrees
      that failure by an agent for service of process to notify the relevant
      Obligor of the process will not invalidate the proceedings
      concerned.

            

    

     

    
      	
              39.3  

            	
              Waiver
      of Immunity

            

    

     

    The
Borrower waives generally all immunity it or its assets or revenues may
otherwise have in any jurisdiction, including immunity in respect
of:

     

    
      	
              (a)  

            	
              the
      giving of any relief by way of injunction or order for specific
      performance or for the recovery of assets or revenues;
  and

            

    

     

    
      
        
          
            	
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              (b)  

            	
              the
      issue of any process against its assets or revenues for the enforcement of
      a judgment or, in an action in rem, for the arrest,
      detention or sale of any of its assets and
  revenues.

            

    

     

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

     

    
      
        
          
            	
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    SCHEDULE
1
THE
ORIGINAL PARTIES

     

    PART
I

    The
Original Borrower

     

    
      	
              Name
      of Borrower

            	 
      
	
              FX
      Energy Poland sp. z o.o.

            	 
      
	 
      	 
      

    

    

     

    
      
        
          
            	
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    PART
II
The
Original Guarantors

     

    

     

    
      	
              Name
      of Guarantor

            
	
              FX
      Energy, Inc.

            
	
              Frontier
      Exploration Company and FX Drilling Company, Inc. in their capacity
      of general partners of FX Energy Netherlands Partnership
    C.V.

            
	
              FX
      Energy Netherlands B.V.

            

    

    

     

    

     

    

     

    
      
        
          
            	
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    PART
III

    The
Original Lenders

     

    
      	
              
                Name
      of Original Lender

                 

              

            	
              
                Commitment

                 

              

            
	
              The
      Royal Bank of Scotland plc

            	
              US$
      20,000,000

            
	
              ING
      Bank N.V.

            	
              US$
      20,000,000

            
	
              KBC
      Bank NV

            	
              US$
      15,000,000

            
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

    
      
        
          
            	
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    SCHEDULE
2
CONDITIONS
PRECEDENT

     

    PART
I

    Conditions
Precedent to Initial Utilisation

     

    
      	
              1.  

            	
              Corporate
      Documents

            

    

     

    
      	
              (a)  

            	
              A
      copy of the constitutional documents of each Non-Dutch
      Obligor.

            

    

     

    
      	
              (b)  

            	
              A
      copy of a resolution of the board of directors of each Non-Dutch
      Obligor:

            

    

     

    
      	
              (i)  

            	
              approving
      the terms of, and the transactions contemplated by, the Finance Documents
      to which it is a party and resolving that it execute the Finance Documents
      to which it is a party;

            

    

     

    
      	
              (ii)  

            	
              authorising
      a specified person or persons to execute the Finance Documents to which it
      is a party on its behalf; and

            

    

     

    
      	
              (iii)  

            	
              authorising
      a specified person or persons, on its behalf, to sign and/or despatch all
      documents, powers of attorney, deeds and notices (including, if relevant,
      any Utilisation Request) to be signed and/or despatched by it under or in
      connection with the Finance Documents to which it is a
    party.

            

    

     

    
      	
              (c)  

            	
              A
      specimen of the signature of each person authorised by the resolution
      referred to in paragraph (b) above.

            

    

     

    
      	
              (d)  

            	
              A
      certificate of each Original Obligor (signed by a director or partner (as
      applicable) of
      each Original Obligor) confirming that borrowing or guaranteeing, as
      appropriate, the Total Commitments would not cause any borrowing,
      guaranteeing or similar limit binding on any Original Obligor to be
      exceeded.

            

    

     

    
      	
              (e)  

            	
              A
      certificate of each Original Obligor (signed by a director) confirming its
      solvency and confirming that it has not registered any establishment with
      the Registrar of Companies in England and
Wales.

            

    

     

    
      	
              (f)  

            	
              A
      certificate of an authorised signatory of the relevant Original Obligor
      certifying that each copy document relating to it specified in this Part I
      is correct, complete and in full force and effect as at a date no earlier
      than the date of this Agreement.

            

    

     

    
      	
              (g)  

            	
              The
      Group Structure Chart certified by the Parent as being true at the date of
      this Agreement.

            

    

     

    
      	
              (h)  

            	
              A
      copy of the articles of association (statuten) as well as an
      extract (uittreksel) from the
      Dutch Commercial Register (Handelsregister) of FX
      Energy Netherlands B.V. and a copy of the limited partnership agreement
      (c.v.
      overeenkomst) dated 23 December 1997  as supplemented by
      the Addendum (as defined below) (the “Association Agreement”)
      as well as an extract (uittreksel) from the
      Dutch Commercial Register (Handelsregister) of FX
      Energy Netherlands Partnership C.V.

            

    

     

    
      
        
          
            	
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              (i)  

            	
              A
      copy of a resolution of the board of managing directors or general
      partners of the Dutch Obligors:

            

    

     

    
      	
              (i)  

            	
              approving
      the terms of, and the transactions contemplated by, the Finance Documents
      to which it is a party and resolving that it execute the Finance Documents
      to which it is a party;

            

    

     

    
      	
              (ii)  

            	
              if
      applicable, authorising a specified person or persons to execute the
      Finance Documents to which it is a party on its behalf;
  and

            

    

     

    
      	
              (iii)  

            	
              if
      applicable, authorising a specified person or persons, on its behalf, to
      sign and/or despatch all documents and notices (including, if relevant,
      any Utilisation Request) to be signed and/or despatched by it under or in
      connection with the Finance Documents to which it is a
    party.

            

    

     

    
      	
              (j) 

            	
              A
      copy of the resolution of the shareholder of FX Energy Netherlands B.V.
      and of the resolution of the limited member of FX Energy Netherlands
      Partnership C.V. approving the resolutions of the board of managing
      directors or general partners referred to under paragraph (i) above and in
      the case of FX Energy Netherlands B.V. only, appointing an authorised
      person to represent the relevant Dutch Obligor in case of a conflict of
      interest.

            

    

     

    
      	
              (k)  

            	
              A
      specimen of the signature of each member of the board of managing
      directors of each Dutch Obligor and, if applicable, each person authorised
      by the resolutions referred to in paragraph (i) sub-paragraph (ii) and/or
      (iii) above in relation to the Finance
  Documents.

            

    

     

    
      	
              (l)  

            	
              A
      copy of the executed Addendum to the Association Agreement in form and
      substance satisfactory to the Lenders (the “Addendum”).

            

    

     

    
      	
              2.  

            	
              Transaction
      Documents

            

    

     

    
      	
              (a)  

            	
              The
      following Security Documents duly executed by the relevant Original
      Obligors and the Security Trustee:

            

    

     

    
      	
              (i)  

            	
              Polish
      Financial Pledge over Shares;

            

    

     

    
      	
              (ii)  

            	
              Polish
      Registered Pledge over Shares;

            

    

     

    
      	
              (iii)  

            	
              Polish
      Financial Pledge over Bank
Accounts;

            

    

     

    
      	
              (iv)  

            	
              Polish
      Registered Pledge over Bank
Accounts;

            

    

     

    
      	
              (v)  

            	
              Polish
      Registered Pledge over Moveable
Assets;

            

    

     

    
      	
              (vi)  

            	
              Dutch
      Share Pledge;

            

    

     

    
      	
              (vii)  

            	
              Assignment
      of Insurances;

            

    

     

    
      
        
          
            	
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              (viii)  

            	
              Assignment
      of Hedging Agreements;

            

    

     

    
      	
              (ix)  

            	
              Assignment
      of Intercompany Loans;

            

    

     

    
      	
              (x)  

            	
              Assignment
      of Gas Sale Agreements; and

            

    

     

    
      	
              (xi)  

            	
              Intercreditor
      Deed.

            

    

     

    
      	
              (b)  

            	
              An
      executed copy of this Agreement.

            

    

     

    
      	
              (c)  

            	
              A
      copy of all Field Documents listed in Schedule 12 (Schedule of Field
      Documents).

            

    

     

    
      	
              (d)  

            	
              A
      copy of any notices of assignment and/or a motion to be filed for
      registration at the relevant register required pursuant to any Security
      Document.

            

    

     

    
      	
              (e)  

            	
              Executed
      copies of the Letters of Release.

            

    

     

    
      	
              (f)  

            	
              An
      executed copy of the Account Bank
Agreement.

            

    

     

    
      	
              3.  

            	
              Bank
      Accounts

            

    

     

    
      	
              (a)  

            	
              A
      letter from the Borrower to the Agent specifying each of the accounts
      subject to or intended to be subject to the Transaction Security including
      details of the account name, account number and the name and address of
      the bank or financial institution where the account is
    held.

            

    

     

    
      	
              (b)  

            	
              A
      copy of notice(s) executed by the Borrower addressed to and acknowledged
      by the banks or financial institutions holding the secured Project
      Accounts.

            

    

     

    
      	
              4.  

            	
              Shares

            

    

     

    
      	
              (a)  

            	
              All
      share certificates and stock transfer forms duly executed by FX Energy
      Poland sp z o.o and FX Energy Netherlands B.V. in blank in relation to the
      certificated shares subject to or expressed to be subject to the
      Transaction Security.

            

    

     

    
      	
              (b)  

            	
              A
      copy of the register of members or shareholders register of FX Energy
      Poland sp z o.o and FX Energy Netherlands
B.V.

            

    

     

    
      	
              (c)  

            	
                    
                A
      copy of any shareholders’ agreement or resolution amending or varying the
      rights attaching to the shares of FX Energy Poland sp z o.o and FX Energy
      Netherlands B.V.

              

            

       

    

     

    
      
        
          
            	
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              5.  

            	
              Insurance

            

    

     

    
      	
              (a)  

            	
              A
      letter, in form and substance satisfactory to the Agent, from Newman
      Martin & Buchan LLP insurance broker dated the date of this Agreement
      addressed to the Agent, the Mandated Lead Arrangers, the Security Trustee
      and the Lenders confirming (i) the insurance policies of the Group at the
      date of this Agreement and that such policies are in full force and effect
      and (ii) the Insurance Policies relating to the Borrower name the Security
      Trustee as loss payee and co-insured and/or additional insured, the
      Borrower as principal insured.

            

    

     

    
      	
              (b)  

            	
              A
      copy of all insurance policies required pursuant to Clause 22.12 (Insurance).

            

    

     

    
      	
              6.  

            	
              Legal
      opinions

            

    

     

    
      	
              (a)  

            	
              A
      legal opinion of Clifford Chance LLP, legal advisers to the Mandated Lead
      Arrangers and the Agent in England, substantially in the form distributed
      to the Original Lenders prior to signing this
  Agreement.

            

    

     

    
      	
              (b)  

            	
              A
      legal opinion of Clifford Chance LLP, legal advisers to the Mandated Lead
      Arrangers and the Agent in Poland, substantially in the form distributed
      to the Original Lenders prior to signing this
  Agreement.

            

    

     

    
      	
              (c)  

            	
              A
      legal opinion of Clifford Chance LLP, legal advisers to the Mandated Lead
      Arrangers and the Agent in Amsterdam, substantially in the form
      distributed to the Original Lenders prior to signing this
      Agreement.

            

    

     

    
      	
              (d)  

            	
              A
      legal opinion of Kruse Landa Maycock & Ricks, LLC, legal advisers to
      the Parent in Utah, substantially in the form distributed to the Original
      Lenders prior to signing this
Agreement.

            

    

     

    
      	
              (e)  

            	
              A
      legal opinion of Woodburn and Wedge legal advisers to the Parent in
      Nevada, substantially in the form distributed to the Original Lenders
      prior to signing this Agreement.

            

    

     

    
      	
              7.  

            	
              Other
      documents and evidence

            

    

     

    
      	
              (a)  

            	
              Evidence
      that any agent for service of process referred to in Clause 39.2 (Service of process) has
      accepted  its
appointment.

            

    

     

    
      	
              (b)  

            	
              Delivery
      of the Hedging Policy.

            

    

     

    
      	
              (c)  

            	
              The
      Agreed Form of the Monthly Cash Flow
Projection.

            

    

     

    
      	
              (d)  

            	
              A
      copy of any other Authorisation or other document, opinion or assurance
      which the Agent considers to be necessary or desirable (if it has notified
      the Borrower accordingly) in connection with the entry into and
      performance of the transactions contemplated by any Finance Document or
      for the validity and enforceability of any Finance
    Document.

            

    

     

    
      	
              (e)  

            	
              The
      Original Financial Statements of each Original
  Obligor.

            

    

     

    
      
        
          
            	
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              (f)  

            	
              A
      copy of the most recent Reserves Report from the Independent
      Engineer.

            

    

     

    
      	
              (g)  

            	
              A
      copy of the operations report required by Clause 21.4 (Operations
      Report).

            

    

     

    
      	
              (h)  

            	
              A
      copy of the signed Compliance Certificate (including supporting documents)
      required by Clause 21.6 (Compliance Certificate)
      certifying compliance as of the date of this
  Agreement.

            

    

     

    
      	
              (i)  

            	
              Evidence
      that the fees, costs and expenses then due from the Borrower pursuant to
      Clause 13 (Fees),
      Clause 18 (Costs and
      expenses) and Clause 14.6 (Stamp Taxes) have been
      paid or will be paid by the first Utilisation
  Date.

            

    

     

    
      	
              (j)  

            	
              The
      executed Fee Letters.

            

    

     

    
      	
              (k)  

            	
              A
      copy of the Clifford Chance LLP legal due diligence report prepared in
      relation to the Borrowing Base Assets and the relevant Field
      Documents.

            

    

     

    
      	
              (l)  

            	
              A
      certificate issued by the Central Register of Treasury Pledges confirming
      that the Borrower is not enrolled as
pledgor.

            

    

     

    
      	
              (m)  

            	
              Excerpts
      from the Polish Register of Pledges confirming that there are no
      registered pledges established over the assets of the Borrower save in
      respect of the Existing Facility
Agreement.

            

    

     

    
      	
              (n)  

            	
              A
      copy of (i) the Initial Projection as agreed between all Lenders and the
      Borrower and (ii) confirmation from the Borrower’s auditors as to the tax
      position to be used in the Initial
Projection.

            

    

     

    
      	
              (o)  

            	
              A
      certified copy of all Subordinated Loan Agreements including all
      amendments thereto.

            

    

     

    
      	
              (p)  

            	
              Any
      other document required by a Lender for ‘know your customer’
      purposes.

            

    

     

    

     

    PART
II

    Conditions
Precedent Required To Be Delivered By An Additional Guarantor

     

    
      	
              (a)  

            	
              An
      Accession Letter, duly executed by the Additional Guarantor and the
      Borrower.

            

    

     

    
      	
              (b)  

            	
              A
      copy of the constitutional documents of the Additional
      Guarantor.

            

    

     

    
      	
              (c)  

            	
              A
      copy of a resolution of the board of directors of the Additional
      Guarantor:

            

    

     

    
      	
              (i)  

            	
              approving
      the terms of, and the transactions contemplated by, the Finance Documents
      to which it is a party and resolving that it execute the Finance Documents
      to which it is a party;

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              authorising
      a specified person or persons to execute the Finance Documents to which it
      is a party on its behalf; and

            

    

     

    
      	
              (iii)  

            	
              authorising
      a specified person or persons, on its behalf, to sign and/or despatch all
      documents, powers of attorney, deeds and notices (including, if relevant,
      any Utilisation Request) to be signed and/or despatched by it under or in
      connection with the Finance Documents to which it is a
    party.

            

    

     

    
      	
              (d)  

            	
              A
      specimen of the signature of each person authorised by the resolution
      referred to in paragraph (b) above.

            

    

     

    
      	
              (e)  

            	
              A
      certificate of the Additional Guarantor (signed by a director of
      the Additional Guarantor) confirming that borrowing or guaranteeing, as
      appropriate, the Total Commitments would not cause any borrowing,
      guaranteeing or similar limit binding on any Original Obligor to be
      exceeded.

            

    

     

    
      	
              (f)  

            	
              A
      certificate of the Additional Guarantor (signed by a director or
      equivalent officer) confirming its solvency and confirming that it has not
      registered any establishment with the Registrar of Companies in England
      and Wales.

            

    

     

    
      	
              (g)  

            	
              A
      certificate of an authorised signatory of the relevant Original Obligor
      certifying that each copy document relating to it specified in this Part
      II is correct, complete and in full force and effect as at a date no
      earlier than the date of this
Agreement.

            

    

     

    
      	
              (h)  

            	
              The
      Group Structure Chart certified by the Parent as being true at the date of
      this Agreement.

            

    

     

    
      	
              (i)  

            	
              A
      copy of any other Authorisation or other document, opinion or assurance
      which the Agent considers to be necessary or desirable in connection with
      the entry into and performance of the transactions contemplated by the
      Accession Letter or for the validity and enforceability of any Finance
      Document.

            

    

     

    
      	
              (j)  

            	
              If
      available, the latest audited financial statements of the Additional
      Guarantor.

            

    

     

    
      	
              (k)  

            	
              A
      certificate issued by the Central Register of Treasury Pledges confirming
      that the Additional Guarantor incorporated in Poland is not enrolled as
      pledgor.

            

    

     

    
      	
              (l)  

            	
              Excerpts
      from the Polish Register of Pledges confirming that there are no
      registered pledges established over the assets of the Additional Guarantor
      incorporated in Poland.

            

    

     

    
      	
              (m)  

            	
              A
      legal opinion of Clifford Chance LLP, legal advisers to the Mandated Lead
      Arrangers in England.

            

    

     

    
      	
              (n)  

            	
              If
      the Additional Guarantor is incorporated in a jurisdiction other than
      England and Wales, a legal opinion of the legal advisers to the Lenders in
      the jurisdiction in which the Additional Guarantor is
      incorporated.

            

    

     

    
      
        
          
            	
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              (o)  

            	
              If
      the proposed Additional Guarantor is incorporated in a jurisdiction other
      than England and Wales, evidence that the agent for service of process
      specified in Clause 39.2 (Service of process), if
      not an Obligor, has accepted its appointment in relation to the proposed
      Additional Guarantor.

            

    

     

    
      	
              (p)  

            	
              A
      copy of the signed Compliance Certificate (including supporting documents)
      required by Clause 21.6 (Compliance Certificate)
      dated the date of the Accession
Letter.

            

    

     

    

     

    
      
        
          
            	
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    SCHEDULE
3
REDUCED
COMMITMENTS

     

    
      	
              Reduction
      Date

            	
              Total
      Commitments

            
	
              30 June 2013

            	
              USD  44,000,000

            
	
              31 December 2013

            	
              USD  33,000,000

            
	
              30 June 2014

            	
              USD  22,000,000

            
	
              31 December 2014

            	
              USD  11,000,000

            
	
              30 June 2015

            	
              0

            

    

    
      
        
          
            	
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    SCHEDULE
4
INITIAL
BORROWING BASE ASSETS

     

    
      	
              (a)  

            	
              The
      Borrower’s 24.5 per cent. interest in the mining usufruct for
      exploitation over the deposit of natural gas located in the area of
      Zaniemyśl municipality, Wielkopolskie Voivideship, known as the
      “Zaniemyśl
      Field” in accordance with the agreement on transfer of the mining
      usufruct dated 30 June 2009 between the Borrower, CalEnergy Resources
      Poland sp. z o.o. and PGNiG, relating to the agreement on establishment of
      the mining usufruct dated 16 September 2008 between the Applicable Polish
      Licensing Authority and PGNiG and relating to the Licence no. 12/2008
      dated 16 September 2008 issued in favour of PGNiG (together with the
      Borrower’s interests in all related facilities and
      infrastructure).

            

    

     

    
      	
              (b)  

            	
              The
      Borrower’s 49 per cent. interest in the mining usufruct for exploitation
      over the deposit of natural gas located in the area of Jarocin city and
      municipality and Jaraczewo municipality, Wielkopolskie voivodeship known
      as the “Roszków
      Field” in accordance with the agreement dated 28 May 2009 between
      the Borrower and PGNiG, relating to the agreement on establishment of the
      mining usufruct dated 26 February 2009 between the Applicable Polish
      Licensing Authority and PGNiG and relating to the Licence no. 3/2009 dated
      26 February 2009 issued in favour of PGNiG  (together with the
      Borrower’s interest in all related facilities and interests in all related
      facilities and infrastructure).

            

    

     

    
      	
              (c)  

            	
              The
      Borrower’s 49
      per cent. interest in the mining usufruct for exploration and appraisal of
      crude oil and natural gas in the area of Września, Dominowo, Kleszczewo,
      Kostrzyn, Krzykosy, Kórnik, Zaniemyśl, Miłosław, Mosina, Środa
      Wielkopolska, Nekla, Nowe Miasto nad Wartą, Żerków municipalities and
      Poznań and Puszczykowo cities, Wielkopolskie voivodeship, known as the
      “Kórnik-Środa
      Area”, in accordance with the agreement regarding cooperation
      within the Poznan Area dated 8 January 2003 between the Borrower and
      PGNiG, relating to the agreement on establishment of the mining usufruct
      dated 16 July 1996, as amended from time to time, between the Applicable
      Polish Licensing Authority and PGNiG and relating to the Licence no.
      32/96/p dated 19 July 1996, as amended from time to time, issued in favour
      of PGNiG and the Borrower’s rights in connection to joint
      operations of the Borrower and PGNiG in the Kórnik-Środa Area relating to
      exploitation of natural gas from the fields known as the “Kromolice Field”, “Kromolice S Field” and
      “Środa
      Wielkopolska Field”, located in the
      Kórnik-Środa Area, relating to the relevant agreements on
      establishment of the mining usufruct rights for exploitation of natural
      gas from these fields concluded between PGNiG and the State Treasury and
      relating to the licences no. 8/2010, 9/2010 and 10/2010 dated 9 July 2010
      for exploitation of natural gas from these fields issued in favour of
      PGNiG.

            

    

     

    

     

    
      
        
          
            	
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    SCHEDULE
5
UTILISATION
REQUEST

     

    From:     
FX Energy Poland sp. z o.o

     

    To:          [Agent]

     

    Dated:

     

    Dear
Sirs

     

    FX
Energy Poland sp. z o.o – USD 55,000,000 Facility Agreement

    dated
[•] August 2010 (the “Agreement”)

     

    
      	
              1.  

            	
              We
      refer to the Agreement.  This is a Utilisation
      Request.  Terms defined in the Agreement have the same meaning
      in this Utilisation Request unless given a different meaning in this
      Utilisation Request.

            

    

     

    
      	
              2.  

            	
              We
      wish to borrow a Loan on the following
terms:

            

    

     

    
      	 	
              Proposed
      Utilisation Date:

            	
              [•]
      (or, if that is not a Business Day, the next Business
  Day)

            
	 	
              Currency
      of Loan:

            	
              USD

            
	 	
              Amount:

            	
              [•]
      or, if less, the Available Facility

            
	 	
              Interest
      Period:

            	
              [•]

            

    

     

    
      	
              3.  

            	
              We
      confirm that each condition specified in Clause 4.2 (Further conditions
      precedent) is satisfied on the date of this Utilisation
      Request.

            

    

     

    
      	
              4.  

            	
              [The
      proceeds of this Loan should be credited to the following Onshore Proceeds
      Account [ ] .] / [This Utilisation pertains to a Rollover
      Loan]

            

    

     

    
      	
              5.  

            	
              This
      Utilisation Request is irrevocable.

            

    

     

    Yours
faithfully

     

    

    _______________________
authorised
signatory for

    FX
Energy Poland sp.  z o.o

     

    
      
        
          
            	
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    SCHEDULE
6
MANDATORY
COST FORMULAE

     

    
      	
              1.  

            	
              The
      Mandatory Cost is an addition to the interest rate to compensate Lenders
      for the cost of compliance with (a) the requirements of the Bank of
      England and/or the Financial Services Authority (or, in either case, any
      other authority which replaces all or any of its functions) or (b) the
      requirements of the European Central
Bank.

            

    

     

    
      	
              2.  

            	
              On
      the first day of each Interest Period (or as soon as possible thereafter)
      the Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”)
      for each Lender, in accordance with the paragraphs set out
      below.  The Mandatory Cost will be calculated by the Agent as a
      weighted average of the Lenders’ Additional Cost Rates (weighted in
      proportion to the percentage participation of each Lender in the relevant
      Loan) and will be expressed as a percentage rate per
  annum.

            

    

     

    
      	
              3.  

            	
              The
      Additional Cost Rate for any Lender lending from a Facility Office in a
      Participating Member State will be the percentage notified by that Lender
      to the Agent.  This percentage will be certified by that Lender
      in its notice to the Agent to be its reasonable determination of the cost
      (expressed as a percentage of that Lender’s participation in all Loans
      made from that Facility Office) of complying with the minimum reserve
      requirements of the European Central Bank in respect of loans made from
      that Facility Office.

            

    

     

    
      	
              4.  

            	
              The
      Additional Cost Rate for any Lender lending from a Facility Office in the
      United Kingdom will be calculated by the Agent as
  follows:

            

    

     

    E x 0.01 per cent. per
annum.
    300

     

    Where:

     

    
      	
               
      

            	
              E

            	
              is
      designed to compensate Lenders for amounts payable under the Fees Rules
      and is calculated by the Agent as being the average of the most recent
      rates of charge supplied by the Reference Banks to the Agent pursuant to
      paragraph 7 below and expressed in pounds per
  £1,000,000.

            

    

     

    
      	
              5.  

            	
              For
      the purposes of this Schedule:

            

    

     

    
      	
              (a)  

            	
              “Fees Rules” means the
      rules on periodic fees contained in the FSA Fees Manual or such other law
      or regulation as may be in force from time to time in respect of the
      payment of fees for the acceptance of
deposits;

            

    

     

    
      	
              (b)  

            	
              “Fee Tariffs” means the
      fee tariffs specified in the Fees Rules under the activity group A.1
      Deposit acceptors (ignoring any minimum fee or zero rated fee required
      pursuant to the Fees Rules but taking into account any applicable discount
      rate); and

            

    

     

    
      	
              (c)  

            	
              “Tariff Base” has the
      meaning given to it in, and will be calculated in accordance with, the
      Fees Rules.

            

    

     

    
      
        
          
            	
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              6.  

            	
              If
      requested by the Agent, each Reference Bank shall, as soon as practicable
      after publication by the Financial Services Authority, supply to the
      Agent, the rate of charge payable by that Reference Bank to the Financial
      Services Authority pursuant to the Fees Rules in respect of the relevant
      financial year of the Financial Services Authority (calculated for this
      purpose by that Reference Bank as being the average of the Fee Tariffs
      applicable to that Reference Bank for that financial year) and expressed
      in pounds per £1,000,000 of the Tariff Base of that Reference
      Bank.

            

    

     

    
      	
              7.  

            	
              Each
      Lender shall supply any information required by the Agent for the purpose
      of calculating its Additional Cost Rate.  In particular, but
      without limitation, each Lender shall supply the following information on
      or prior to the date on which it becomes a
  Lender:

            

    

     

    
      	
              (a)  

            	
              the
      jurisdiction of its Facility Office;
and

            

    

     

    
      	
              (b)  

            	
              any
      other information that the Agent may reasonably require for such
      purpose.

            

    

     

    Each
Lender shall promptly notify the Agent of any change to the information provided
by it pursuant to this paragraph.

     

    
      	
              8.  

            	
              the
      rates of charge of each Reference Bank for the purpose of E above shall be
      determined by the Agent based upon the information supplied to it pursuant
      to paragraphs 7 above.

            

    

     

    
      	
              9.  

            	
              The
      Agent shall have no liability to any person if such determination results
      in an Additional Cost Rate which over or under compensates any Lender and
      shall be entitled to assume that the information provided by any Lender or
      Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct
      in all respects.

            

    

     

    
      	
              10.  

            	
              The
      Agent shall distribute the additional amounts received as a result of the
      Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for
      each Lender based on the information provided by each Lender and each
      Reference Bank pursuant to paragraphs 3, 7 and 8
  above.

            

    

     

    
      	
              11.  

            	
              Any
      determination by the Agent pursuant to this Schedule in relation to a
      formula, the Mandatory Cost, an Additional Cost Rate or any amount payable
      to a Lender shall, in the absence of manifest error, be conclusive and
      binding on all Parties.

            

    

     

    
      	
              12.  

            	
              The
      Agent may from time to time, after consultation with the Borrower and the
      Lenders, determine and notify to all Parties any amendments which are
      required to be made to this Schedule in order to comply with any change in
      law, regulation or any requirements from time to time imposed by the Bank
      of England, the Financial Services Authority or the European Central Bank
      (or, in any case, any other authority which replaces all or any of its
      functions) and any such determination shall, in the absence of manifest
      error, be conclusive and binding on all
Parties.

            

    

     

    
      
        
          
            	
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    SCHEDULE
7
FORM
OF TRANSFER CERTIFICATE

     

    To:          [•]
as Agent

     

    
      	
              From:

            	
              [The Existing Lender]
      (the “Existing
      Lender”) and [The
      New Lender] (the “New
    Lender”)

            

    

     

    Dated:

     

    FX
Energy Poland sp. z o.o – USD 55,000,000 Facility Agreement

    dated
[•] August 2010 (the “Agreement”)

     

    
      	
              1.  

            	
              We
      refer to the Agreement.  This is a Transfer
      Certificate.  Terms defined in the Agreement have the same
      meaning in this Transfer Certificate unless given a different meaning in
      this Transfer Certificate.

            

    

     

    
      	
              2.  

            	
              We
      refer to Clause 24.5 (Procedure for
      transfer):

            

    

     

    
      	
              (a)  

            	
              The
      Existing Lender and the New Lender agree to the Existing Lender
      transferring to the New Lender by novation all or part of the Existing
      Lender’s Commitment, rights and obligations referred to in the Schedule in
      accordance with Clause 24.5 (Procedure for
      transfer).

            

    

     

    
      	
              (b)  

            	
              The
      proposed Transfer Date is [•].

            

    

     

    
      	
              (c)  

            	
              The
      Facility Office and address, fax number and attention details for notices
      of the New Lender for the purposes of Clause 31.2 (Addresses) are set out
      in the Schedule.

            

    

     

    
      	
              3.  

            	
              The
      New Lender confirms, for the benefit of the Agent and without liability to
      any Obligor, that it is:

            

    

     

    
      	
              (a)  

            	
              [a
      Qualifying Lender (which is not a Treaty
  Lender;]

            

    

     

    
      	
              (b)  

            	
              [a
      Treaty Lender;]

            

    

     

    
      	
              (c)  

            	
              [not
      a Qualifying Lender].1

            

    

     

    
      	
              4.  

            	
              The
      New Lender expressly acknowledges the limitations on the Existing Lender’s
      obligations set out in paragraph (c) of Clause 24.4 (Limitation of responsibility
      of Existing Lenders).

            

    

     

    
      	
              5.  

            	
              [The
      New Lender confirms that the person beneficially entitled to interest
      payable to that Lender in respect of an advance under a Finance Document
      is either:

            

    

     

    
      	
              (a)  

            	
              a
      company resident in the United Kingdom for United Kingdom tax purposes;
      or

            

    

     

    __________________  

    
      
        	
                1

              	
                Delete
      as applicable - each New Lender is required to confirm which of these
      three categories it falls within.

              

      

       

    

    
      
        
          
            	
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              (b)  

            	
              a
      partnership each member of which
is:

            

    

     

    
      	
              (i)  

            	
              a
      company so resident in the United Kingdom;
or

            

    

     

    
      	
              (ii)  

            	
              a
      company not so resident in the United Kingdom which carries on a trade in
      the United Kingdom through a permanent establishment and which brings into
      account in computing its chargeable profits (within the meaning of section
      19 of the CTA) the whole of any share of interest payable in respect of
      that advance that falls to it by reason of Part 17 of the CTA;
      or

            

    

     

    
      	
              (c)  

            	
              a
      company not so resident in the United Kingdom which carries on a trade in
      the United Kingdom through a permanent establishment and which brings into
      account interest payable in respect of that advance in computing the
      chargeable profits (within the meaning of section 19 of the CTA) of that
      company.]

            

    

     

    
      	
              [4/5].

            	
              This
      Transfer Certificate may be executed in any number of counterparts and
      this has the same effect as if the signatures on the counterparts were on
      a single copy of this Transfer
Certificate.

            

    

     

    
      	
              [5/6].

            	
              This
      Transfer Certificate [and any non-contractual obligations arising out of
      or in connection with it] [is/are] governed by English
  law.

            

    

     

    
      	
              [6/7].

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

            

    

     

    THE
SCHEDULE

     

    Commitment/rights
and obligations to be transferred

     

    [insert relevant
details]

     

    [Facility Office address, fax number
and attention details for notices and account details for
payments,]

     

    
      	
              [Existing
      Lender]

            	
              [New
      Lender]

            
	 
      	 
      
	
              By:                                                               

            	
              By:                                                               

            
	
              This
      Transfer Certificate is accepted by the Agent and the Transfer Date is
      confirmed as [•].

            
	
              [Agent]

            	 
      
	 
      	 
      
	
              By:                                                               

            	 
      

    

    

     

    
      
        
          
            	
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    SCHEDULE
8
FORM
OF ASSIGNMENT AGREEMENT

     

    To:          [•]
as Agent and [•] as Borrower

     

    
      	
              From:

            	
              [the
      Existing Lender]
      (the “Existing
      Lender”) and [the New Lender] (the “New
    Lender”)

            

    

     

    Dated:

     

    FX Energy Poland sp. z o.o
– USD 55,000,000 Facility
Agreement

    dated
[•] August 2010 (the “Agreement”)

     

    
      	
              1.  

            	
              We
      refer to the Agreement.  This is an Assignment
      Agreement.  Terms defined in the Agreement have the same meaning
      in this Assignment Agreement unless given a different meaning in this
      Assignment Agreement.

            

    

     

    
      	
              2.  

            	
              We
      refer to Clause 24.6 (Procedure for
      assignment):

            

    

     

    
      	
              (a)  

            	
              The
      Existing Lender assigns absolutely to the New Lender all the rights of the
      Existing Lender under the Agreement and the other Finance Documents which
      relate to that portion of the Existing Lender’s Commitments and
      participations in Loans under the Agreement as specified in the
      Schedule.

            

    

     

    
      	
              (b)  

            	
              The
      Existing Lender is released from all the obligations of the Existing
      Lender which correspond to that portion of the Existing Lender’s
      Commitments and participations in Loans under the Agreement specified in
      the Schedule.

            

    

     

    
      	
              (c)  

            	
              The
      New Lender becomes a Party as a Lender and is bound by obligations
      equivalent to those from which the Existing Lender is released under
      paragraph (b) above.

            

    

     

    
      	
              3.  

            	
              The
      proposed Transfer Date is [•].

            

    

     

    
      	
              4.  

            	
              On
      the Transfer Date the New Lender becomes Party to the Finance Documents as
      a Lender.

            

    

     

    
      	
              5.  

            	
              The
      Facility Office and address, fax number and attention details for notices
      of the New Lender for the purposes of Clause 31.2 (Addresses) are set out
      in the Schedule.

            

    

     

    
      	
              6.  

            	
              The
      New Lender expressly acknowledges the limitations on the Existing Lender’s
      obligations set out in paragraph (c) of Clause 24.4 (Limitation of responsibility
      of Existing Lenders).

            

    

     

    
      	
              7.  

            	
              The
      New Lender confirms, for the benefit of the Agent and without liability to
      any Obligor, that it is:

            

    

     

    
      	
              (a)  

            	
              [a
      Qualifying Lender falling within paragraph (i)(A) [or paragraph (ii) of
      the definition of Qualifying
Lender;]

            

    

     

    
      
        
          
            	
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              (b)  

            	
              [a
      Treaty Lender;]

            

    

     

    
      	
              (c)  

            	
              [not
      a Qualifying Lender].2

            

    

     

    
      	
              8.  

            	
              [The
      New Lender confirms that the person beneficially entitled to interest
      payable to that Lender in respect of an advance under a Finance Document
      is either:

            

    

     

    
      	
              (a)  

            	
              a
      resident in Poland;

            

    

     

    
      	
              (b)  

            	
              acting
      through a Facility office established in Poland and constituting a
      permanent establishment within the meaning of the relevant double taxation
      agreement; or

            

    

     

    a Treaty
Lender which has provided the Borrower with the Certificate of
Residence.]

     

    
      	
              [8/9].

            	
              This
      Assignment Agreement acts as notice to the Agent (on behalf of each
      Finance Party) and, upon delivery in accordance with Clause 24.7 (Copy of Transfer Certificate
      or Assignment Agreement to Borrower), to the Borrower (on behalf of
      each Obligor) of
      the assignment referred to in this Assignment
  Agreement.

            

    

     

    
      	
              [9/10].

            	
              This
      Assignment Agreement may be executed in any number of counterparts and
      this has the same effect as if the signatures on the counterparts were on
      a single copy of this Assignment
Agreement.

            

    

     

    
      	
              [10/11].

            	
              This
      Assignment Agreement and any non-contractual obligations arising out of or
      in connection with it is governed by English
  law.

            

    

     

    
      	
              [11/12].

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

            

    

     

    __________________  

    
      
        	
                2

              	
                Delete
      as applicable - each New Lender is required to confirm which of these
      three categories it falls within.

              

      

       

    

    
      
        
          
            	
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    THE
SCHEDULE

     

    Rights
to be assigned and obligations to be released and undertaken

     

    [insert relevant
details]

     

    [Facility
office address, fax number and attention details for notices and account details
for payments]

     

    
      	
              [Existing
      Lender]

            	
              [New
      Lender]

            
	 
      	 
      
	
              By:                                                               

            	
              By:                                                               

            
	 
	
              This
      Assignment Agreement is accepted by the Agent and the Transfer Date is
      confirmed as [•].

            
	 
	
              Signature
      of this Assignment Agreement by the Agent constitutes confirmation by the
      Agent of receipt of notice of the assignment referred to herein, which
      notice the Agent receives on behalf of each Finance
  Party.

            
	 	 
	
              [Agent]

            	 
      
	 
      	 
      
	
              By:                                                               

            	 
      

    

    

     

    
      
        
          
            	
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    SCHEDULE
9
FORM
OF COMPLIANCE CERTIFICATE

     

    To:          [•]
as Agent

     

    From:      FX
Energy, Inc.

     

    Dated:

     

    Dear
Sirs

     

    FX
Energy Poland sp. z o.o – USD 55,000,000 Facility Agreement

    dated
[•] August 2010 (the “ Agreement”)

     

    
      	
              1.  

            	
              We
      refer to the Agreement.  This is a Compliance
      Certificate.  Terms defined in the Agreement have the same
      meaning when used in this Compliance Certificate unless given a different
      meaning in this Compliance
Certificate.

            

    

     

    
      	
              2.  

            	
              We
      confirm that as of the date of the last Monthly Cash Flow Projection, we
      have sufficient funds available to meet all of the Group’s obligations as
      and when they fall due for each month falling during the 12 month period
      following the date of such Monthly Cash Flow
  Projection.

            

    

     

    
      	
              3.  

            	
              We
      confirm that no Default or Event of Default is
  continuing.

            

    

     

    

     

    
      	
              Signed:                                                               

            	 
      
	
              Director

              of

              FX
      ENERGY, INC.

            	 
      

    

    

     

    
      
        
          
            	
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    SCHEDULE
10
FORM
OF GUARANTOR ACCESSION LETTER

     

    To:          [Agent]

     

    From:      [Subsidiary]
and [Borrower]

     

    Dated:

     

    Dear
Sirs

     

    FX Energy Poland sp. z o.o – USD
55,000,000 Facility
Agreement

    dated
[•] August 2010 (the “Agreement”)

    

    
      	
              1.  

            	
              We
      refer to the Agreement.  This is an Accession
      Letter.  Terms defined in the Agreement have the same meaning in
      this Accession Letter unless given a different meaning in this Accession
      Letter.

            

    

     

    
      	
              2.  

            	
              [Subsidiary]
      agrees to become an Additional Guarantor and to be bound by the terms of
      the Agreement as an Additional Guarantor pursuant to Clause 25.2 (Additional Guarantors)
      of the Agreement.  [Subsidiary] is a company duly incorporated
      under the laws of [name of relevant
  jurisdiction].

            

    

     

    
      	
              3.  

            	
               [Subsidiary’s]
      administrative details are as
follows:

            

    

     

    Address:

     

    Fax
No:

     

    Attention:

     

    
      	
              4.  

            	
              This
      Accession Letter is governed by English
law.

            

    

     

    [This
Guarantor Accession Letter is entered into by deed.]

     

    

     

    

     

    [Company]                                                                                                [Subsidiary]

     

                 By:                                                                                                           By:

     

    
      
        
          
            	
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    SCHEDULE
11
EXISTING
FINANCIAL INDEBTEDNESS

     

    
      	
              1.  

            	
              A
      loan agreement with an effective date of 1 January 2006 between FX Energy
      Netherlands B.V. and FX Energy Poland sp. z o.o. and all amendments
      thereto.

            

    

     

    
      	
              2.  

            	
              A
      loan agreement with an effective date of 1 January 2006, between FX Energy
      Netherlands Partnership C.V. and FX Energy Netherlands B.V. and all
      amendments thereto.

            

    

     

    
      
        
          
            	
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    SCHEDULE
12
SCHEDULE
OF FIELD DOCUMENTS

     

    
      	
              1.  

            	
              ZANIEMYŚL
      FIELD

            

    

     

    
      	
              (a)  

            	
              Licences

            

    

     

    
      	
              (i)  

            	
              License
      No. 12/2008 dated 16 September 2008 issued by the Minister of Environment
      to the benefit of PGNiG.

            

    

     

    
      	
              (b)  

            	
              Mining
      usufruct

            

    

     

    
      	
              (i)  

            	
              Mining
      usufruct agreement dated 16 September 2008 between the State Treasury and
      PGNiG; and

            

    

     

    
      	
              (ii)  

            	
              Agreement
      dated 30 June 2009 between PGNiG, the Borrower  and CalEnergy
      Resources Poland sp. z o.o. transferring 24.5 per cent. interest in the
      mining usufruct to the Borrower.

            

    

     

    
      	
              (c)  

            	
              Other
      documents

            

    

     

    
      	
              (i)  

            	
              The
      Joint Operating Agreement covering the Greater Zaniemysl Area between
      PGNiG, the Borrower and CalEnergy Resources Poland sp. z o.o., dated 27
      October 2005;

            

    

     

    
      	
              (ii)  

            	
              The
      gas sale agreement dated 8 December 2005 relating to the Greater Zaniemysl
      Area between the Borrower and PGNiG, as amended from time to
      time.

            

    

     

    
      	
              2.  

            	
              ROSZKÓW
      FIELD

            

    

     

    
      	
              (a)  

            	
              Licences

            

    

     

    
      	
              (i)  

            	
              License
      No. 3/2009 dated 26 February 2009 issued by the Minister of Environment to
      the benefit of PGNiG.

            

    

     

    
      	
              (b)  

            	
              Mining
      usufruct

            

    

     

    
      	
              (i)  

            	
              Mining
      usufruct agreement dated 26 February 2009 between the State Treasury and
      PGNiG; and

            

    

     

    
      	
              (ii)  

            	
              Agreement
      dated 28 May 2009 between PGNiG and the Borrower transferring
      49  per cent. interest in the mining usufruct to the
      Borrower.

            

    

     

    
      	
              (c)  

            	
              Other
      documents

            

    

     

    
      	
              (i)  

            	
              The
      joint operating agreement covering areas in the Foresudetic Moncline
      between PGNiG and the Borrower, dated 12 May 2000;
  and

            

    

     

    
      
        
          
            	
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              (ii)  

            	
              The
      gas sale agreement relating the Roszków Field dated 19 June 2009 between
      the Borrower and PGNiG.

            

    

     

    
      	
              3.  

            	
              KROMOLICE
      FIELD, KROMOLICE S FIELD AND ŚRODA WIELKOPOLSKA
      FIELD

            

    

     

    
      	
              (a)  

            	
              Licences

            

    

     

    
      	
              (i)  

            	
              License
      No. 32/96/p dated 19 July 1996 issued by the Minister of Environment to
      the benefit of PGNiG, relating to exploration and processing in the
      Kórnik-Środa Area;

            

    

     

    
      	
              (ii)  

            	
              License No. 8/2010
      dated 9 July 2010 issued by the Minister of Environment in favour
      of PGNiG, relating to exploitation from the Środa Wielkopolska
      Field;

            

    

     

    
      	
              (iii)  

            	
              License
      No. 9/2010 dated 9 July 2010 issued by the Minister of Environment in
      favour of PGNiG, relating to exploitation from the Kromolice Field;
      and

            

    

     

    
      	
              (iv)  

            	
              License
      No. 10/2010 dated 9 July 2010 issued by the Minister of Environment in
      favour of PGNiG, relating to exploitation from the Kromolice S
      Field.

            

    

     

    
      	
              (b)  

            	
              Mining
      usufruct

            

    

     

    
      	
              (i)  

            	
              Mining
      usufruct agreement dated 16 July 1996, as amended from time to time,
      between the State Treasury and PGNiG,
      relating to exploration and processing in the Kórnik-Środa
      Area;

            

    

     

    
      	
              (ii)  

            	
              Agreement
      regarding cooperation within the Poznan Area 8 January 2003 between PGNiG
      and the Borrower  transferring 49 per cent. interest in the
      mining usufruct for exploration and processing in the
      Kórnik-Środa Area to the
Borrower;

            

    

     

    
      	
              (iii)  

            	
              Mining
      usufruct agreement dated 9 July 2010 between the State Treasury and PGNiG,
      relating to exploitation from the Środa Wielkopolska Field;
      and

            

    

     

    
      	
              (iv)  

            	
              Mining
      usufruct agreement dated 9 July 2010 between the State Treasury and PGNiG,
      relating to exploitation from the Kromolice Field;
  and

            

    

     

    
      	
              (v)  

            	
              Mining
      usufruct agreement dated 9 July 2010 between the State Treasury and PGNiG,
      relating to exploitation from the Kromolice S
  Field.

            

    

     

    
      	
              (c)  

            	
              Other
      documents

            

    

     

    
      	
              (i)  

            	
              The
      Joint Operating Agreement covering Poznan Area between PGNiG and the
      Borrower, dated 1 June 2004.

            

    

     

    
      
        
          
            	
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    SCHEDULE
13
LMA
FORM OF CONFIDENTIALITY UNDERTAKING

     

    [Letterhead
of Seller]

     

    To:

     

    
      	 
      	
              [insert
      name of Potential Purchaser]

            

    

    

     

    Re:           The Agreement

     

    
      	
              Company:                                                   (the
      “Company”)

              Date:

              Amount:

              Agent:

            

    

    

     

    Dear
Sirs

     

    We
understand that you are considering acquiring an interest in the Agreement
which, subject to the Agreement, may be by way of novation, assignment, the
entering into, whether directly or indirectly, of a sub-participation or any
other transaction under which payments are to be made or may be made by
reference to one or more Finance Documents and/or one or more Obligors or by way
of investing in or otherwise financing, directly or indirectly, any such
novation, assignment, sub-participation or other transaction (the “Acquisition”).  In
consideration of us agreeing to make available to you certain information, by
your signature of a copy of this letter you agree as follows:

     

    
      	
              1.  

            	
              CONFIDENTIALITY
      UNDERTAKING

            

    

     

    You
undertake (a) to keep all Confidential Information confidential and not to
disclose it to anyone, save to the extent permitted by paragraph 2 below and to
ensure that all Confidential Information is protected with security measures and
a degree of care that would apply to your own confidential information, and (b)
until the Acquisition is completed to use the Confidential Information only for
the Permitted Purpose.

     

    
      	
              2.  

            	
              PERMITTED
      DISCLOSURE

            

    

     

    We agree
that you may disclose:

     

    
      
        
          
            	
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              2.1  

            	
              to
      any of your Affiliates and any of your or their officers, directors,
      employees, professional advisers and auditors such Confidential
      Information as you shall consider appropriate if any person to whom the
      Confidential Information is to be given pursuant to this paragraph 2.1 is
      informed in writing of its confidential nature and that some or all of
      such Confidential Information may be price-sensitive information, except
      that there shall be no such requirement to so inform if the recipient is
      subject to professional obligations to maintain the confidentiality of the
      information or is otherwise bound by requirements of confidentiality in
      relation to the Confidential
Information;

            

    

     

    
      	
              2.2  

            	
              subject
      to the requirements of the Agreement, to any
  person:

            

    

     

    
      	
              (a)  

            	
              to
      (or through) whom you assign or transfer (or may potentially assign or
      transfer) all or any of your rights and/or obligations which you may
      acquire under the Agreement such Confidential Information as you shall
      consider appropriate if the person to whom the Confidential Information is
      to be given pursuant to this sub-paragraph (a) of paragraph 2.2 has
      delivered a letter to you in equivalent form to this
    letter;

            

    

     

    
      	
              (b)  

            	
              with
      (or through) whom you enter into (or may potentially enter into) any
      sub-participation in relation to, or any other transaction under which
      payments are to be made or may be made by reference to the Agreement or
      any Obligor such Confidential Information as you shall consider
      appropriate if the person to whom the Confidential Information is to be
      given pursuant to this sub-paragraph (b) of paragraph 2.2 has delivered a
      letter to you in equivalent form to this
letter;

            

    

     

    
      	
              (c)  

            	
              to
      whom information is required or requested to be disclosed by any
      governmental, banking, taxation or other regulatory authority or similar
      body, the rules of any relevant stock exchange or pursuant to any
      applicable law or regulation such Confidential Information as you shall
      consider appropriate; and

            

    

     

    
      	
              2.3  

            	
              notwithstanding
      paragraphs 2.1 and 2.2 above, Confidential Information to such persons to
      whom, and on the same terms as, a Finance Party is permitted to disclose
      Confidential Information under the Agreement, as if such permissions were
      set out in full in this letter and as if references in those permissions
      to Finance Party were references to
you.

            

    

     

    
      	
              3.  

            	
              NOTIFICATION
      OF DISCLOSURE

            

    

     

    You agree
(to the extent permitted by law and regulation) to inform us:

     

    
      	
              3.1  

            	
              of
      the circumstances of any disclosure of Confidential Information made
      pursuant to sub-paragraph (c) of paragraph 2.2 above except where such
      disclosure is made to any of the persons referred to in that paragraph
      during the ordinary course of its supervisory or regulatory function;
      and

            

    

     

    
      	
              3.2  

            	
              upon
      becoming aware that Confidential Information has been disclosed in breach
      of this letter.

            

    

     

    
      
        
          
            	
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              4.  

            	
              RETURN
      OF COPIES

            

    

     

    If you do
not enter into the Acquisition and we so request in writing, you shall return
all Confidential Information supplied to you by us and destroy or permanently
erase (to the extent technically practicable) all copies of Confidential
Information made by you and use all reasonable endeavours to ensure that anyone
to whom you have supplied any Confidential Information destroys or permanently
erases (to the extent technically practicable) such Confidential Information and
any copies made by them, in each case save to the extent that you or the
recipients are required to retain any such Confidential Information by any
applicable law, rule or regulation or by any competent judicial, governmental,
supervisory or regulatory body or in accordance with internal policy, or where
the Confidential Information has been disclosed under sub-paragraph (c) of
paragraph 2.2 above.

     

    
      	
              5.  

            	
              CONTINUING
      OBLIGATIONS

            

    

     

    The
obligations in this letter are continuing and, in particular, shall survive and
remain binding on you until (a) if you acquire an interest in the Agreement by
way of novation, the date on which you acquire such an interest; (b) if you
enter into the Acquisition other than by way of novation, the date falling
twelve (12) months after termination of that Acquisition; or (c) in any other
case twelve (12) months after the date of this letter.

     

    
      	
              6.  

            	
              NO
      REPRESENTATION; CONSEQUENCES OF BREACH,
ETC

            

    

     

    You
acknowledge and agree that:

     

    
      	
              6.1  

            	
              neither
      we, nor any member of the Group nor any of our or their respective
      officers, employees or advisers (each a “Relevant Person”) (i)
      make any representation or warranty, express or implied, as to, or assume
      any responsibility for, the accuracy, reliability or completeness of any
      of the Confidential Information or any other information supplied by us or
      the assumptions on which it is based or (ii) shall be under any obligation
      to update or correct any inaccuracy in the Confidential Information or any
      other information supplied by us or be otherwise liable to you or any
      other person in respect of the Confidential Information or any such
      information; and

            

    

     

    
      	
              6.2  

            	
              we
      or members of the Group may be irreparably harmed by the breach of the
      terms of this letter and damages may not be an adequate remedy; each
      Relevant Person may be granted an injunction or specific performance for
      any threatened or actual breach of the provisions of this letter by
      you.

            

    

     

    
      	
              7.  

            	
              ENTIRE
      AGREEMENT:  NO WAIVER; AMENDMENTS,
ETC

            

    

     

    
      	
              7.1  

            	
              This
      letter constitutes the entire agreement between us in relation to your
      obligations regarding Confidential Information and supersedes any previous
      agreement, whether express or implied, regarding Confidential
      Information.

            

    

     

    
      	
              7.2  

            	
              No
      failure or delay in exercising any right or remedy under this letter will
      operate as a waiver thereof nor will any single or partial exercise of any
      right or remedy preclude any further exercise thereof or the exercise of
      any other right or remedy under this
letter.

            

    

     

    
      
        
          
            	
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              7.3  

            	
              The
      terms of this letter and your obligations under this letter may only be
      amended or modified by written agreement between
  us.

            

    

     

    
      	
              8.  

            	
              INSIDE
      INFORMATION

            

    

     

    You
acknowledge that some or all of the Confidential Information is or may be
price-sensitive information and that the use of such information may be
regulated or prohibited by applicable legislation including securities law
relating to insider dealing and market abuse and you undertake not to use any
Confidential Information for any unlawful purpose.

     

    
      	
              9.  

            	
              NATURE
      OF UNDERTAKINGS

            

    

     

    The
undertakings given by you under this letter are given to us and are also given
for the benefit of the Company and each other member of the Group.

     

    
      	
              10.  

            	
              THIRD
      PARTY RIGHTS

            

    

     

    
      	
              10.1  

            	
              Subject
      to this paragraph 10 and to paragraphs 6 and 9, a person who is not a
      party to this letter has no right under the Contracts (Rights of Third
      Parties) Act 1999 (the “Third Parties Act”) to
      enforce or to enjoy the benefit of any term of this
  letter.

            

    

     

    
      	
              10.2  

            	
              The
      Relevant Persons may enjoy the benefit of the terms of paragraphs 6 and 9
      subject to and in accordance with this paragraph 10 and the provisions of
      the Third Parties Act.

            

    

     

    
      	
              10.3  

            	
              Notwithstanding
      any provisions of this letter, the parties to this letter do not require
      the consent of any Relevant Person to rescind or vary this letter at any
      time.

            

    

     

    
      	
              11.  

            	
              GOVERNING
      LAW AND JURISDICTION

            

    

     

    
      	
              11.1  

            	
              This
      letter (including the agreement constituted by your acknowledgement of its
      terms)  (the “Letter”) and any
      non-contractual obligations arising out of or in connection with it
      (including any non-contractual obligations arising out of the negotiation
      of the transaction contemplated by this Letter)  are governed by
      English law.

            

    

     

    
      	
              11.2  

            	
              The
      courts of England have non-exclusive jurisdiction to settle any dispute
      arising out of or in connection with this Letter (including a dispute
      relating to any non-contractual obligation arising out of or in connection
      with either this Letter or the negotiation of the transaction contemplated
      by this Letter).

            

    

     

    
      	
              12.  

            	
              DEFINITIONS

            

    

     

    In this
letter (including the acknowledgement set out below) terms defined in the
Agreement shall, unless the context otherwise requires, have the same meaning
and:

     

    
      
        
          
            	
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     “Confidential Information”
means all information relating to the Company, any Obligor, the Group, the
Finance Documents, the Facility and/or the Acquisition which is provided to you
in relation to the Finance Documents or the Facility by us or any of our
affiliates or advisers, in whatever form, and includes information given orally
and any document, electronic file or any other way of representing or recording
information which contains or is derived or copied from such information but
excludes information that:

     

    
      	
              (a)  

            	
              is
      or becomes public information other than as a direct or indirect result of
      any breach by you of this letter;
or

            

    

     

    
      	
              (b)  

            	
              is
      identified in writing at the time of delivery as non-confidential by us or
      our advisers; or

            

    

     

    
      	
              (c)  

            	
              is
      known by you before the date the information is disclosed to you by us or
      any of our affiliates or advisers or is lawfully obtained by you after
      that date, from a source which is, as far as you are aware, unconnected
      with the Group and which, in either case, as far as you are aware, has not
      been obtained in breach of, and is not otherwise subject to, any
      obligation of confidentiality.

            

    

     

     “Group” means the Company and
its subsidiaries for the time being (as such term is defined in the Companies
Act 2006).

     

     “Permitted Purpose” means
considering and evaluating whether to enter into the Acquisition.

     

    Please
acknowledge your agreement to the above by signing and returning the enclosed
copy.

     

    Yours
faithfully

     

    

     

    

    For and
on behalf of

    [Seller]

     

    To:           [Seller]

     

    The
Company and each other member of the Group

     

    

     

    We
acknowledge and agree to the above:

     

    

     

    

    For and
on behalf of

    [Potential
Purchaser]

     

    

     

    
      
        
          
            	
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    SCHEDULE
14
GROUP
STRUCTURE CHART

     

     

    Visio No. 2463598

     

     

    

     

     

     

     

    
      
        
          
            	
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    SCHEDULE
15
HEDGING
POLICY

     

    
      	
              1.  

            	
              FOREIGN
      EXCHANGE HEDGING

            

    

     

    
      	
              1.1  

            	
              General

            

    

     

    
      	
              (a)  

            	
              The
      Borrower may from time to time enter into such Hedging Agreements as it
      considers necessary, for the purposes of protecting its exposure to
      fluctuations in foreign exchange
rates.

            

    

     

    
      	
              (b)  

            	
              Any
      Hedging Agreement entered into pursuant to paragraph 1.1.(a) above shall
      be entered into by the Borrower by means of foreign exchange swaps, and/or
      the purchase by the Borrower of foreign exchange put/call options, and/or
      foreign exchange collar agreements.

            

    

     

    
      	
              1.2  

            	
              Minimum
      hedging requirement in relation to PLN/USD exchange rate
      exposure:

            

    

     

    
      	
              (a)  

            	
              If
      on any Recalculation Date, the Projection shows that repayment of
      principal will be due over the next 12 months (whether it is due to the
      Borrowing Base Amount reducing or a scheduled Reduction Date occurring),
      then the Borrower will be required to enter into Hedging Agreements to
      cover its exposure to adverse fluctuations of PLN against USD over a 12
      month period.

            

    

     

    
      	
              (b)  

            	
              The
      notional amount to be hedged will be 70% of the principal repayments due
      over the next 12 months as shown in the then current
      Projection.

            

    

     

    
      	
              2.  

            	
              PETROLEUM
      PRICE HEDGING

            

    

     

    
      	
              2.1  

            	
              Objectives
      for hedging

            

    

     

    The
Borrower may from time to time enter into such Hedging Agreements as it
considers necessary, for the purposes of protecting its exposure to fluctuations
in Petroleum prices, to ensure that it will be able to meet (i) its (and all
other Obligors’) payment obligations under the Facility Agreement when they fall
due and (ii) the Obligors’ ongoing expenditure and investment program in
relation to the Borrowing Base Assets.

     

    
      	
              2.2  

            	
              Limitation
      on hedge volume

            

    

     

    In order
to avoid excessive exposure to hedging liabilities, each Obligor
shall:

     

    
      	
              (a)  

            	
              consult
      with the Technical Bank prior to entering into any Hedging Agreement for
      the purposes of hedging its or any other Obligor’s exposure to
      fluctuations in Petroleum prices;
and

            

    

     

    
      	
              (b)  

            	
              not
      enter into any Hedging Agreement unless (a) a maximum volume profile has
      been agreed between the Technical Bank and the relevant Obligor (each
      acting reasonably) and (b) such Hedging Agreement is in compliance with
      such maximum volume profile.

            

    

     

    
      
        
          
            	
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              2.3  

            	
              Limitation
      on hedge tenor

            

    

     

    No
Obligor may (without the prior written consent of the Majority Lenders) enter
into any Hedging Agreement for the purposes of hedging its or any other
Obligor’s exposure to fluctuations in Petroleum prices if such Hedging Agreement
results or could result in any Obligor and/or the Obligors’ collectively hedging
their exposure to fluctuations in Petroleum prices in respect of any period in
excess of three years following the end of the month in which such Hedging
Agreement is entered into.

     

    
      	
              2.4  

            	
              Permitted
      Hedge Instruments

            

    

     

    Subject
to the above, any Hedging Agreement entered into by any Obligor shall be entered
into by means of any of the following:

     

    
      	
              (a)  

            	
              a
      swap agreement by which the relevant Obligor agrees to sell a notional
      quantity of oil or gas to a counterparty at a fixed, specified price and
      to purchase the same notional quantity of oil or gas from such
      counterparty at a floating price over a fixed, specified
      period;

            

    

     

    
      	
              (b)  

            	
              a
      forward sale agreement by which the relevant Obligor agrees to sell a
      specified quantity of oil or gas to a counterparty at a fixed, specified
      price on a fixed, specified future
date;

            

    

     

    
      	
              (c)  

            	
              a
      put option agreement by which the relevant Obligor acquires the right to
      sell a notional quantity of oil or gas to a counterparty at a fixed,
      specified price over a fixed, specified
period;

            

    

     

    
      	
              (d)  

            	
              a
      collar agreement (including a “zero cost collar”) by which the relevant
      Obligor acquires the right to sell a notional quantity of oil or gas to a
      counterparty at a fixed, specified price (i.e. buys a put option) and
      sells to such counterparty the right to purchase the same notional
      quantity of oil or gas from the relevant Obligor at a fixed, specified
      price (i.e. sells a call option) over a fixed, specified period (provided
      that the call strike price is greater than the put strike price);
      or

            

    

     

    
      	
              (e)  

            	
              any
      other hedging transaction as may be approved in writing by the Majority
      Lenders (acting reasonably).

            

    

     

    
      	
              3.  

            	
              INTEREST
      RATE HEDGING

            

    

     

    
      	
              3.1  

            	
              The
      Borrower may from time to time enter into such Hedging Agreements as it
      considers necessary, for the purposes of protecting its exposure to
      fluctuations in interest rates.

            

    

     

    
      	
              3.2  

            	
              Any
      Hedging Agreement entered into pursuant to paragraph 3.1 above shall be
      entered into by the Borrower by means of interest rate swaps, and/or the
      purchase by the Borrower of interest rates put/call options, and/or
      interest rates collar agreements.

            

    

     

    
      
        
          
            	
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              3.3  

            	
              No
      Obligor may (without the prior written consent of the Majority Lenders)
      enter into any Hedging Agreement for the purposes of hedging its or any
      other Obligor’s exposure to fluctuations in interest rates if such Hedging
      Agreement results or could result in any Obligor and/or the Obligors’
      collectively hedging their exposure to fluctuations in interest rates in
      respect of any amounts in excess of 105% of the amount of debt outstanding
      from time to time under the Facility
Agreement.

            

    

     

    
      
        
          
            	
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    SCHEDULE
16
TIMETABLES

     

    
      	 
      	
              Loans
      in Dollars

            
	
              Delivery
      of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation
      Request)

            	
              U-3

              11.00am

            
	 	 
	
              Agent
      notifies the Lenders of the Loan in accordance with Clause 5.4 (Lenders’
      participation)

            	
              U-3

              3.00pm

            
	 	 
	
              LIBOR
      is fixed

            	
              Quotation
      Day as of

              11:00
      a.m.

            

    

    

     

    “U” =
date of utilisation

     

    “U - X” =
Business Days prior to date of utilisation

     

    

     

    

     

    
      
        
          
            	
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    SIGNATURES

     

    THE
BORROWER

     

    FX ENERGY
POLAND SP. Z O.O.

     

    By: /s/
Antoni Minkiewicz

     

    Address:

     

    Fax:

     

    Attention:

     

    

     

    THE
BORROWER

     

    FX ENERGY
POLAND SP. Z O.O.

     

    By: /s/
David N. Pierce

     

    Address:
Ul. Chalubinskiego 8, 00-613 Warsaw, Poland

     

    Fax:
1-801-486-5575

     

    Attention:
David N. Pierce

     

    

     

    THE
ORIGINAL GUARANTORS

     

    FX
ENERGY, INC.

     

    By: /s/
David N. Pierce

     

    Address:
3006 Highland Drive, Salt Lake City, UT USA

     

    Fax:
1-801-486-5575

     

    Attention:
David N. Pierce

     

    

     

    
      
        
          
            	
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    FX
NETHERLANDS PARTNERSHIP C.V. by:

     

    
      	
              FX
      DRILLING COMPANY, INC.

            	
              FRONTIER
      EXPLORATION COMPANY

            
	
              By:
      /s/ David N. Pierce

            	
              By:
      /s/ Andrew W. Pierce

            
	
              as
      authorised agent

            	 
      
	
              Address:

            	
              Address:

            
	
              Fax:
      1-801-486-5575

            	
              Fax:
      1-801-486-5575

            
	
              Attention:
      David Pierce

            	
              Attention:
      Andrew Pierce

            

    

    acting in
their capacity as general partners of FX Netherlands Partnership
C.V.

     

    

     

    FX ENERGY
NETHERLANDS B.V.

     

    By: /s/
Clay Newton

     

    Address:
Locatellikade 1, 1076 AZ Amsterdam, The Netherlands

     

    Fax:
1-801-486-5575

     

    Attention:
Clay Newton

     

    

     

    THE
MANDATED LEAD ARRANGERS

     

    THE ROYAL
BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:
135 Bishopsgate, London EC2M 3UR

     

    Fax: +44
(0)20 7085 4003

     

    Attention:
Shenth Ravindra  / Emma-Marie Mayes

     

    

     

    
      
        
          
            	
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    ING BANK
N.V.

     

    
      	
              By:
      /s/ M.F.E. de Haan

            	
              By:
      /s/ Michael Klemme

            
	
              Managing
      Director

            	
              Managing
      Director

            

    

    Address:

     

    Fax:

     

    Attention:

     

    

     

    KBC BANK
NV

     

    
      	
              By:
      /s/ Katrijn Quaghebeur

            	
              By:
      /s/ David Barry

            

    

    Address:
Havenlaan 2, 1080 Brussels, Belgium

     

    
      	
              Fax:
      32 2 429 8694

            	
              Fax:
      353 603 5437

            
	
              Attention:
      Katrijn Quaghebeur

            	
              Attention:
      David Barry

            

    

    

     

    THE
TECHNICAL BANK

     

    THE ROYAL
BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:
280 Bishopsgate, London EC2M 4RB

     

    Fax:  +44
(0) 20 7085 8766

     

    Attention:
James Cowlrick

     

    

     

    
      
        
          
            	
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    THE
AGENT

     

    THE ROYAL
BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:
135 Bishopsgate, London, EC2M 3UR

     

    Fax: +44
(0) 20 7085 4564

     

    Attention:
Philip A. Pentney

     

    

     

    THE
SECURITY TRUSTEE

     

    THE ROYAL
BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:

     

    Fax:

     

    Attention:

     

    

     

    THE
ORIGINAL LENDERS

     

    THE ROYAL
BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:
135 Bishopsgate, London EC2M 3UR

     

    Fax: +44
(0)20 7085 4003

     

    Attention:
Shenth Ravindra  / Emma-Marie Mayes

     

    

     

    
      
        
          
            	
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    ING BANK
N.V.

     

    
      	
              By:
      /s/ M.F.E. de Haan

            	
              By:
      /s/ Michael Klemme

            
	
              Managing
      Director

            	
              Managing
      Director

            

    

    Address:

     

    Fax:

     

    Attention:

     

    

     

    KBC BANK
NV

     

    
      	
              By:
      /s/ Katrijn Quaghebeur

            	
              By:
      /s/ David Barry

            

    

    Address:
Havenlaan 2, 1080 Brussels, Belgium

     

    
      	
              Fax:
      32 2 429 8694

            	
              Fax:
      353 603 5437

            
	
              Attention:
      Katrijn Quaghebeur

            	
              Attention:
      David Barry

            

    

    

     

    

     

    
      
        
          
            	
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                    CLIFFORD 

                    CHANCE

                  	
                    CLIFFORD
      CHANCE LLP

                     

                  
	 
      

          

          

        

      

    

    
      	 
      	
              EXECUTION
      VERSION

            
	 
      	 
      
	 
      	 
      
	
              DATED
      5 August 2010

            
	
               

              FX
      ENERGY POLAND SP. Z O.O

              AS
      BORROWER

               

              THE
      ROYAL BANK OF SCOTLAND PLC

              AS
      AGENT

               

              THE
      ROYAL BANK OF SCOTLAND PLC

              AS
      SECURITY TRUSTEE

               

              THE
      SENIOR LENDERS

               

              AND

               

              THE
      SUBORDINATED LENDERS

               

               

            
	 	 	 
	 
      	
               

              INTERCREDITOR
      DEED

               

            	 
      

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              CONTENTS

            
	
              Clause

            	
              Page

            
	
              1.

            	
              Definitions
      and Interpretation

            	
              1

            
	
              2.

            	
              Ranking
      and Priority

            	
              7

            
	
              3.

            	
              Senior
      Lenders:  Rights and Obligations

            	
              8

            
	
              4.

            	
              Subordinated
      Lenders:  Rights and Obligations

            	
              8

            
	
              5.

            	
              Hedging
      Banks:  Rights and Obligations

            	
              9

            
	
              6.

            	
              Permitted
      Payments

            	
              11

            
	
              7.

            	
              Entitlement
      to Enforce

            	
              11

            
	
              8.

            	
              Effect
      of Insolvency Event

            	
              12

            
	
              9.

            	
              Turnover
      of Receipts

            	
              13

            
	
              10.

            	
              Sharing

            	
              14

            
	
              11.

            	
              Enforcement
      of Security

            	
              15

            
	
              12.

            	
              Disposals
      by Security Trustee

            	
              16

            
	
              13.

            	
              Application
      of Proceeds

            	
              16

            
	
              14.

            	
              The
      Security Trustee

            	
              18

            
	
              15.

            	
              Change
      of Security Trustee and Delegation

            	
              24

            
	
              16.

            	
              Change
      of Party

            	
              26

            
	
              17.

            	
              Fees
      and Expenses

            	
              27

            
	
              18.

            	
              Indemnities

            	
              28

            
	
              19.

            	
              Information

            	
              29

            
	
              20.

            	
              Notices

            	
              29

            
	
              21.

            	
              Preservation

            	
              31

            
	
              22.

            	
              Counterparts

            	
              32

            
	
              23.

            	
              Governing
      Law

            	
              32

            
	
              24.

            	
              Enforcement

            	
              33

            
	
              Schedule
      1

            	
              Form
      of Obligor Accession Deed

            	
              34

            
	
              Schedule
      2

            	
              Form
      of Intercreditor Accession Deed

            	
              36

            

    

    

     

    
      
        
          
            	
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    THIS AGREEMENT is dated 5
August 2010 and made between:

     

    
      	
              (1)  

            	
              FX ENERGY POLAND SP. Z
      O.O  as Borrower;

            

    

     

    
      	
              (2)  

            	
              FX ENERGY, INC. as
      Original Guarantor;

            

    

     

    
      	
              (3)  

            	
              FX DRILLING COMPANY, INC. AND
      FRONTIER EXPLORATION COMPANY IN THEIR CAPACITY AS GENERAL PARTNERS OF FX
      ENERGY NETHERLANDS PARTNERSHIP C.V. as Original
      Guarantor;

            

    

     

    
      	
              (4)  

            	
              FX ENERGY NETHERLANDS B.V.
      as Original Guarantor;

            

    

     

    
      	
              (5)  

            	
              THE ROYAL BANK OF SCOTLAND
      PLC as agent under the Senior Facility Agreement (the “Agent”);

            

    

     

    
      	
              (6)  

            	
              THE ROYAL BANK OF SCOTLAND
      PLC as trustee for the Secured Parties (the “Security
      Trustee”);

            

    

     

    
      	
              (7)  

            	
              THE FINANCIAL
      INSTITUTIONS named on the signing pages as Senior Lenders (the
      “Senior
      Lenders”);

            

    

     

    
      	
              (8)  

            	
              THE ENTITIES named on
      the signing pages as Subordinated Lenders (the “Subordinated Lenders”);
      and

            

    

     

    
      	
              (9)  

            	
              THE ENTITIES named on
      the signing pages as Group Subordinated Lenders (the “Group Subordinated
      Lenders”)

            

    

     

    IT IS AGREED as
follows:

     

    
      	
              1.  

            	
              
DEFINITIONS AND
      INTERPRETATION

            

    

     

    
      	
              1.1  

            	
              Definitions

            

    

     

    In this
Agreement:

     

    “Agent’s Spot Rate of Exchange”
means the Agent’s spot rate of exchange for the purchase of the relevant
currency with the Base Currency in the London foreign exchange market at or
about 11:00 a.m. on a particular day.

     

    “Base Currency” means
dollars.

     

     “Borrower” means the Borrower
as defined in the Senior Facility Agreement.

     

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

     

     “Delegate” means any delegate,
agent, attorney or co-trustee appointed by the Security Trustee.

     

    
      
        
          
            	
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     “Enforcement Action”
means:

     

    
      	
              (a)  

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

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

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

            

    

     

    
      	
              (d)  

            	
              the
      exercise of any right of set-off against any Obligor in respect of any
      Liabilities;

            

    

     

    
      	
              (e)  

            	
              the
      suing for, commencing or joining of any legal or arbitration proceedings
      against any Obligor to recover or in respect of any
      Liabilities;

            

    

     

    
      	
              (f)  

            	
              the
      entering into of any composition, assignment or arrangement with any
      Obligor; or

            

    

     

    
      	
              (g)  

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

            

    

     

     “Event of Default” means any
event or circumstance specified as such in the Senior Facility Agreement and the
Subordinated Documents.

     

     “Facility Agreement” means each
of the Senior Facility Agreement or the Subordinated Documents, as the case may
be.

     

     “Finance Document” means each
of this Agreement, the Senior Finance Documents, the Subordinated Documents, the
Security Documents, the Hedging Agreements and any other document designated as
such by the Security Trustee and the Borrower.

     

     “Group” means the Parent and
its Subsidiaries for the time being, in each case as a separate legal entity and
not as consolidated with any other member of the Group.

     

     “Hedging Agreement” means any
agreement or instrument relating to the hedging of commodity price exposure,
interest rate exposure or currency exposure (including a forward, swap or
option) or any other derivative or risk hedging instrument approved under Clause
5 (Hedging Banks: rights and
obligations).

     

     “Hedging Banks” means a
counterparty to a Hedging Agreement which (i) is a Lender (as defined in the
Senior Facility Agreement) and (ii) has acceded to this Agreement in accordance
with the terms of Clause 5 (Hedging Banks: rights and
obligations) as a Hedging Bank.

     

    
      
        
          
            	
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    “Hedging Liabilities” means the
Liabilities owed by any Obligor to the Hedging Banks under the Hedging
Agreements.

     

    “Hedging Transaction” means
transactions under Hedging Agreements.

     

     “Intercreditor Accession Deed”
means an undertaking in substantially the form set out in Schedule 2 (Form of Intercreditor Accession
Deed).

     

    “ISDA Agreement” means the 1992
ISDA Master Agreement (Multicurrency - Cross Border), as supplemented and
amended by a Schedule.

     

     “Insolvency Event” means, in
relation to any Obligor:

     

    
      	
              (a)  

            	
              any
      resolution is passed or order made for the winding up, dissolution,
      administration or reorganisation of that Obligor, a moratorium is declared
      in relation to any indebtedness of that Obligor or an administrator is
      appointed to that Obligor;

            

    

     

    
      	
              (b)  

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

            

    

     

    
      	
              (c)  

            	
              the
      appointment of any liquidator, receiver, administrator, administrative
      receiver, compulsory manager or other similar officer in respect of that
      Obligor or any of its assets; or

            

    

     

    
      	
              (d)  

            	
              any
      analogous procedure or step is taken in any
  jurisdiction.

            

    

     

     “Instructing Group” means those
Senior Creditors whose Senior Credit Participations at that time aggregate more
than 662/3 percent of
the total Senior Credit Participations at that time.

     

     “Lenders” means the Senior
Lenders and the Subordinated Lenders.

     

     “Liabilities” means all present
and future liabilities and obligations at any time of any Obligor to any Lender
or Hedging Bank under the Finance Documents, both actual and contingent and
whether incurred solely or jointly or in any other capacity together with any of
the following matters relating to or arising in respect of those liabilities and
obligations:

     

    
      	
              (a)  

            	
              any
      refinancing, novation, deferral or
extension;

            

    

     

    
      	
              (b)  

            	
              any
      claim for damages or restitution;
and

            

    

     

    
      	
              (c)  

            	
              any
      claim as a result of any recovery by any Obligor of a payment or discharge
      on the grounds of preference,

            

    

     

    and any
amounts which would be included in any of the above but for any discharge,
non-provability or unenforceability of those amounts in any insolvency or other
proceedings.

     

     “Majority Senior Lenders” means
the Majority Lenders as defined in the Senior Facility Agreement.

     

     “Obligor Accession Deed” means
a deed in substantially the form set out in Schedule 1 (Form of Obligor Accession
Deed).

     

     “Obligor” means the Borrower
and the Guarantors, and any person which becomes a Party to this Agreement as an
Obligor in accordance with Clause 16 (Change of
Party).

     

    
      
        
          
            	
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     “Party” means a party to this
Agreement.

     

     “Permitted Payment”
means:

     

    
      	
              (a)  

            	
              scheduled
      payments of principal and interest (including default
      interest);

            

    

     

    
      	
              (b)  

            	
              costs,
      expenses, commitment commission and fees payable to and sums payable under
      indemnities to any agent or
trustee;

            

    

     

    
      	
              (c)  

            	
              sums
      payable in respect of any applicable tax gross-up or indemnity or of any
      increased costs in accordance with the terms of the Senior Facility
      Agreement;

            

    

     

    
      	
              (d)  

            	
              prepayment
      in accordance with the terms of the Senior Facility Agreement as a result
      of it becoming unlawful for a Lender to perform its obligations under, or
      of any mandatory prepayment arising under, any of the Finance
      Documents;

            

    

     

    
      	
              (e)  

            	
              save
      in respect of the circumstances described in Clause 7.3(b) (Hedging Bank: Permitted
      Enforcement), scheduled payments arising under the terms of the
      Hedging Agreements (excluding, for the purposes of this paragraph (e), any
      payments as a result of the premature close out or termination of a
      Hedging Agreement);

            

    

     

    
      	
              (f)  

            	
              payments
      under the Hedging Agreements in respect of any (i) applicable tax gross-up
      or indemnity under those Hedging Agreements and (ii) any close out or
      termination in accordance with Clause 7.3(c) (Hedging Banks: Permitted
      Enforcement); and

            

    

     

    
      	
              (g)  

            	
              any
      prepayments of any Liabilities arising as a result of the application of
      the proceeds of permitted under Clause 6 (Permitted
      Payments).

            

    

     

     “Receiver” means a receiver or
receiver and manager or administrative receiver of the whole or any part of the
Trust Property.

     

     “Relevant Liabilities”
means:

     

    
      	
              (a)  

            	
              in
      the case of a Lender, the Liabilities owed to Lenders ranking (in
      accordance with the terms of this Agreement) pari passu with or in
      priority to that Lender together with all present and future liabilities
      and obligations, actual and contingent, of the Obligors to the Agent and
      the Security Trustee;

            

    

     

    
      	
              (b)  

            	
              in
      the case of a Hedging Bank, the Liabilities owed to Hedging Banks ranking
      (in accordance with the terms of this Agreement) pari passu with or in
      priority to that Hedging Bank together with all present and future
      liabilities and obligations, actual and contingent, of the Obligors to the
      Agent and the Security Trustee; and

            

    

     

    
      	
              (c)  

            	
              in
      the case of an Obligor, the Liabilities owed to the Lenders and Hedging
      Banks together with all present and future liabilities and obligations,
      actual and contingent, of the Obligors to the Agent and the Security
      Trustee.

            

    

     

     “Secured Obligations” means all
the Liabilities and all other present and future obligations at any time due,
owing or incurred by the Borrower or the Guarantors to any Secured Party under
the Finance Documents, including the obligations set out in Clause 14.2 (Parallel Debt (Covenant to pay the Security
Trustee)) whether present or future, actual and contingent (and whether
incurred solely or jointly and as principal or surety or in any other
capacity).

     

    
      
        
          
            	
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     “Secured Parties” means the
Security Trustee, any Receiver or Delegate, the Agent and the Senior Creditors
from time to time but, in the case of the Agent or Senior Creditor, only if it
is a party to this Agreement or has delivered to the Security Trustee a duly
executed Lender Accession Deed accepted by the Security Trustee and the
Agent.

     

     “Security” means a mortgage,
charge, pledge, lien or other security interest securing any obligation of any
person or any other agreement or arrangement having a similar
effect.

     

     “Senior Creditors” means the
Senior Lenders and the Hedging Banks.

     

     “Senior Credit Participation”
means, in relation to a Senior Creditor, the aggregate of:

     

    
      	
              (a)  

            	
              if
      there is no Loan then outstanding under the Senior Facility Agreement, its
      Commitment, and otherwise its participation in the Loans then outstanding
      under the Senior Facility Agreement;
and

            

    

     

    
      	
              (b)  

            	
              in
      respect of any Hedging Transaction of that Senior Creditor under any
      Hedging Agreement that has, as of the date the calculation is made, been
      terminated or closed out in accordance with Clause 7.3(a) (Hedging Banks: Permitted
      Enforcement) of this Agreement, the amount, if any, payable to it
      under any Hedging Agreement in respect of that termination or close out as
      of the date of termination or close out (and before taking into account
      any interest accrued on that amount since the date of termination or close
      out) to the extent that amount is unpaid (that amount to be certified by
      the relevant Senior Creditor and as calculated in accordance with the
      relevant Hedging Agreement).

            

    

     

     “Senior Facility Agreement”
means the USD 55,000,000 reserve based lending facility agreement dated on or
about the date of this agreement between FX Energy Poland sp. z o.o as borrower
and the Senior Lenders.

     

     “Senior Finance Documents”
means the Finance Documents as defined in the Senior Facility
Agreement.

     

     “Senior Liabilities” means the
Liabilities owed by the Obligors to the Senior Creditors under the Senior
Finance Documents and the Hedging Liabilities.

     

     “Subordinated Documents” means
any document pursuant to which the Borrower has incurred or may incur Financial
Indebtedness to an Affiliate (except for any such document which is a Field
Document) and any document designated as such by the Agent and the Borrower,
acting reasonably.

     

     “Subordinated Liabilities”
means the Liabilities owed by the Borrower to the Subordinated Lenders under the
Subordinated Documents.

     

     “Trust Property”
means:

     

    
      	
              (a)  

            	
              the
      Transaction Security and all proceeds of the Transaction
      Security;

            

    

     

    
      	
              (b)  

            	
              all
      obligations expressed to be undertaken by an Obligor to pay amounts in
      respect of the Liabilities to the Security Trustee as trustee for the
      Secured Parties and secured by the Transaction Security together with all
      representations and warranties expressed to be given by an Obligor in
      favour of the Security Trustee as trustee for the Secured
      Parties;

            

    

     

    
      
        
          
            	
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              (c)  

            	
              the
      Security Trustee’s interest in any trust fund created pursuant to Clause 9
      (Turnover of
      Receipts);

            

    

     

    
      	
              (d)  

            	
              any
      guarantee, indemnity or other assurance against loss offered to the
      Security Trustee as trustee for Secured Parties (or any of them) under
      Clauses 3.2 (Security);
      and

            

    

     

    
      	
              (e)  

            	
              any
      other amounts or property, whether rights, entitlements, choses in action
      or otherwise, actual or contingent, which the Security Trustee is required
      by the terms of the Finance Documents to hold as trustee on trust for the
      Secured Parties.

            

    

     

    
      	
              1.2  

            	
              Construction

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (i)  

            	
              any
      “Agent”, the “
      Security Trustee”,
      any “Lender”, any
      “Hedging Bank”,
      any “Obligor” or
      any “Party” shall
      be construed so as to include its successors in title, permitted assignees
      and permitted transferees and, in the case of the Security Trustee, any
      person for the time being appointed as security trustee or security
      trustees in accordance with this
Agreement;

            

    

     

    
      	
              (ii)  

            	
              “assets” includes present
      and future properties, revenues and rights of every
      description;

            

    

     

    
      	
              (iii)  

            	
              a
      “Finance Document”
      or any other agreement or instrument is a reference to that Finance
      Document, or other agreement or instrument, amended, novated,
      supplemented, extended, replaced or restated (in each case however
      fundamentally) as permitted by this
Agreement;

            

    

     

    
      	
              (iv)  

            	
              “indebtedness” includes
      any obligation (whether incurred as principal or as surety) for the
      payment or repayment of money, whether present or future, actual or
      contingent;

            

    

     

    
      	
              (v)  

            	
              a
      “person” includes
      any person, firm, company, corporation, government, state or agency of a
      state or any association, trust or partnership (whether or not having
      separate legal personality) of two or more of the
    foregoing;

            

    

     

    
      	
              (vi)  

            	
              a
      “regulation”
      includes any regulation, rule, official directive, request or guideline
      (whether or not having the force of law) of any governmental,
      intergovernmental or supranational body, agency, department or regulatory,
      self-regulatory or other authority or organisation;
  and

            

    

     

    
      	
              (vii)  

            	
              a
      provision of law is a reference to that provision as amended or
      re-enacted.

            

    

     

    
      	
              (b)  

            	
              Section,
      Clause and Schedule headings are for ease of reference
    only.

            

    

     

    
      	
              (c)  

            	
              A
      Default (other than an Event of Default) is “continuing” if it has
      not been remedied or waived and an Event of Default is “continuing” if it has
      not been waived.

            

    

     

    
      	
              1.3  

            	
              Dutch
      terms

            

    

     

    In this
Agreement, where it relates to a Dutch entity, a reference to:

     

    
      	
              (a)  

            	
              a
      necessary action to authorise, where applicable, includes without
      limitation:

            

    

     

    
      
        
          
            	
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              (i)  

            	
              any
      action required to comply with the Dutch Works Council Act (Wet op de
      ondernemingsraden); and

            

    

     

    
      	
              (ii)  

            	
              obtaining
      unconditional positive advice (advies) from each
      competent works council;

            

    

     

    
      	
              (b)  

            	
              a
      winding-up, administration or dissolution includes a Dutch entity
      being:

            

    

     

    
      	
              (i)  

            	
              declared
      bankrupt (failliet
      verklaard);

            

    

     

    
      	
              (ii)  

            	
              dissolved
      (ontbonden);

            

    

     

    
      	
              (c)  

            	
              a
      moratorium includes surséance van betaling
      and granted a moratorium includes surséance
      verleend;

            

    

     

    
      	
              (d)  

            	
              a
      trustee in bankruptcy includes a curator;

            

    

     

    
      	
              (e)  

            	
              an
      administrator includes a bewindvoerder;

            

    

     

    
      	
              (f)  

            	
              a
      receiver or an administrative receiver does not include a curator or bewindvoerder;
      and

            

    

     

    
      	
              (g)  

            	
              an
      attachment includes a beslag.

            

    

     

    
      	
              1.4  

            	
              Terms
      defined in other Finance Documents

            

    

     

    Unless
defined in this Agreement or the context otherwise requires, a term defined in
the Senior Facility Agreement has the same meaning in this Agreement or any
notice given under or in connection with this Agreement.

     

    
      	
              1.5  

            	
              Currency
      symbols and definitions

            

    

     

    
      	
              (a)  

            	
              “USD”, “$” and “dollars” denote the
      lawful currency of the United States of
America.

            

    

     

    
      	
              (b)  

            	
              “zloty” denotes the
      lawful currency of the Republic of
Poland.

            

    

     

    
      	
              1.6  

            	
              Third
      party rights

            

    

     

    
      	
              (a)  

            	
              Unless
      expressly provided to the contrary in this Agreement, a person who is not
      a Party has no right under the Contracts (Rights of Third Parties) Act
      1999 to enforce or to enjoy the benefit of any term of this
      Agreement.

            

    

     

    
      	
              (b)  

            	
              Notwithstanding
      any term of this Agreement, the consent of any person who is not a Party
      is not required to rescind or vary this Agreement at any
    time.

            

    

     

    
      	
              1.7  

            	
              Intercreditor
      Deed prevails

            

    

     

    In the
event of any inconsistency between the terms of any Finance Document and this
Agreement, the terms of this Agreement shall prevail.

     

    
      	
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              2.  

            	
              RANKING
      AND PRIORITY

            

    

     

    Each of
the Parties agrees that the Liabilities owed by the Obligors to the Lenders and
the Hedging Banks rank in the following order and are postponed and subordinated
to any prior ranking Liabilities as follows:

     

    
      	
              (a)  

            	
              first,
      the Senior Liabilities, pari passu as between
      the Liabilities owed by the Obligors to the Senior Creditors under the
      Senior Finance Documents and the Hedging Liabilities;
  and

            

    

     

    
      	
              (b)  

            	
              second,
      the Subordinated Liabilities.

            

    

     

    
      	
              3.  

            	
              SENIOR
      LENDERS:  RIGHTS AND
OBLIGATIONS

            

    

     

    
      	
              3.1  

            	
              Payment

            

    

     

    The
Obligors may pay, repay, redeem or acquire the Senior Liabilities at any time in
accordance with the terms of the Senior Finance Documents.

     

    
      	
              3.2  

            	
              Security

            

    

     

    The
Senior Lenders may take, accept or receive the benefit of any Security,
guarantee, indemnity or other assurance against loss in respect of the Senior
Liabilities in addition to the Transaction Security if and to the extent legally
possible, at the same time, it is also offered to the Security Trustee on behalf
of the Hedging Banks in respect of, and ranking in the same order of priority
as, the Hedging Liabilities.

     

    
      	
              3.3  

            	
              Amendments

            

    

     

    The
Senior Lenders may in accordance with their terms amend the Senior Finance
Documents at any time.

     

    
      	
              4.  

            	
              SUBORDINATED
      LENDERS:  RIGHTS AND
OBLIGATIONS

            

    

     

    
      	
              4.1  

            	
              Payment

            

    

     

    The
Borrower may pay, repay, redeem or acquire the Subordinated Liabilities at any
time only if that action is permitted under Clause 6.2 (Payments to Subordinated
Lenders) or if the prior consent of the Majority Senior Lenders is
obtained.

     

    
      	
              4.2  

            	
              Security

            

    

     

    The
Subordinated Lenders may not take, accept or receive the benefit of any
Security, guarantee, indemnity or other assurance against loss in respect of the
Subordinated Liabilities.

     

    
      	
              4.3  

            	
              Amendments
      and waivers

            

    

     

    The
Subordinated Lenders and the Borrower may not amend or waive any material term
of the Subordinated Documents without the prior written consent of the Majority
Senior Lenders.

     

    
      	
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              4.4  

            	
              Representations

            

    

     

    
      	
              (a)  

            	
              Each
      Subordinated Lender represents and warrants to the Senior Creditors,
      Security Trustee and Agent that it has not made available any Financial
      Indebtedness to the Borrower under any agreement other than a Subordinated
      Document.

            

    

     

    
      	
              (b)  

            	
              The
      Borrower represents and warrants to the Senior Creditors, Security Trustee
      and Agent that it has not received any Financial Indebtedness from any
      member of the Group save from the Subordinated Lenders under the
      Subordinated Documents.

            

    

     

    
      	
              (c)  

            	
              The
      representations in (a) and (b) above are also deemed to be made by each of
      the Subordinated Lenders (by reference to the facts and circumstances then
      existing) on each date that a person accedes as a Subordinated Lender
      under this Agreement  by executing and delivering to the
      Security Trustee a Lender Accession
Deed.

            

    

     

    
      	
              5.  

            	
              HEDGING
      BANKS:  RIGHTS AND
OBLIGATIONS

            

    

     

    
      	
              5.1  

            	
              Identity
      of Hedging Banks

            

    

     

    No person
providing hedging facilities to the Borrower shall be entitled to share in any
of the Transaction Security in respect of any of the liabilities arising in
relation to those hedging facilities unless it is a party to this Agreement as a
Hedging Bank.  No person may become a Hedging Bank nor shall any
liabilities arising in respect of its hedging facilities be treated as Hedging
Liabilities unless:

     

    
      	
              (a)  

            	
              that
      person has executed and delivered to the Security Trustee a Lender
      Accession Deed acceding to this Agreement as a Hedging Bank in accordance
      with Clause 16 (Change
      of Party);

            

    

     

    
      	
              (b)  

            	
              the
      proposed Hedging Agreements comply with the Hedging Policy;
      and

            

    

     

    
      	
              (c)  

            	
              the
      Agent has received a copy of the documents proposed to be Hedging
      Agreements.

            

    

     

    
      	
              5.2  

            	
              Payment

            

    

     

    The
Obligors may pay, repay, redeem or acquire the Hedging Liabilities at any time
if that action is a Permitted Payment or payment pursuant to Clause 8.1 (Acceleration and claim) or if
the prior consent of the Majority Senior Lenders is obtained.

     

    
      	
              5.3  

            	
              Security

            

    

     

    The
Hedging Banks may not take, accept or receive the benefit of any Security,
guarantee, indemnity (other than the indemnities under the ISDA Agreement) or
other assurance against loss in respect of the Hedging Liabilities other
than:

     

    
      	
              (a)  

            	
               the
      Transaction Security; and

            

    

     

    
      	
              (b)  

            	
              any
      guarantee, indemnity or other assurance against loss contained in the
      Senior Facility Agreement.

            

    

     

    
      
        
          
            	
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              5.4  

            	
              Amendments
      and waivers

            

    

     

    The
Hedging Banks may not amend or waive any term of the Hedging Agreements save
if:

     

    
      	
              (a)  

            	
              the
      amendment or waiver would not constitute a breach of the Hedging Policy;
      or

            

    

     

    
      	
              (b)  

            	
              the
      prior consent of the Majority Senior Lenders is
  obtained.

            

    

     

    
      	
              5.5  

            	
              Terms
      of Hedging Agreements

            

    

     

    The
Borrower and Hedging Banks agree that any Hedging Agreement will be based on the
standard ISDA Agreement and will provide for payments under the “Second Method”
in the event of a termination of the Hedging Transaction (whether as a result of
a termination event or an event of default, as defined in that Hedging
Agreement).

     

    
      	
              5.6  

            	
              Termination
      of Hedging Transactions

            

    

     

    If, on
termination of any Hedging Transaction occurring after the commencement of any
Enforcement Action, a settlement amount or other amount falls due from a Hedging
Bank to the Borrower then that amount shall, without prejudice to the terms of
any Security Document, be paid by that Hedging Bank to the Security Trustee,
treated as the proceeds of enforcement of the Transaction Security and applied
in accordance with the terms of this Agreement.

     

    
      	
              5.7  

            	
              Hedging
      Bank undertakings

            

    

     

    Each
Hedging Bank undertakes and agrees with each of the Senior Lenders that it will
not:

     

    
      	
              (a)  

            	
              demand
      or receive payment, prepayment or repayment of, or any distribution in
      respect of (or on account of) any of the Hedging Liabilities in cash or in
      kind, or apply any money or property in or towards discharge of the
      Hedging Liabilities other than:

            

    

     

    
      	
              (i)  

            	
              scheduled
      payments and deliveries and amounts in respect of Tax, commission and
      indemnities under the terms of a Hedging Agreement or a Hedging
      Transaction and any netting, set–off or automatic discharge pursuant to
      the terms of a Hedging Agreement;
or

            

    

     

    
      	
              (ii)  

            	
              on
      termination or closing out (in whole or in part) of a Hedging Agreement or
      a Hedging Transaction in accordance with Clause 7.2 (Hedging Banks: Permitted
      Enforcement); or

            

    

     

    
      	
              (iii)  

            	
              proceeds
      of the enforcement of the Security Documents applied in the order
      permitted by Clause 13 (Application of
      Proceeds);

            

    

     

    
      	
              (b)  

            	
              discharge
      all or any part of the Hedging Liabilities by set–off, any right of
      combination of accounts or otherwise save to the extent permitted under
      paragraph ‎(a)
      above;

            

    

     

    
      	
              (c)  

            	
              assign,
      sell, transfer or otherwise dispose of any interest in any of the Hedging
      Liabilities owing to it to any person except by way of novation to a
      Hedging Bank, and then (unless the Borrower is a Defaulting Party (as
      defined in the ISDA Agreement)) not if as a result there would be a Tax
      Event (as defined in the ISDA Agreement) with respect to which the
      Borrower would be the sole Affected Party (as defined in the ISDA
      Agreement); or

            

    

     

    
      
        
          
            	
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              (d)  

            	
              commence
      any proceedings against the Borrower or take any action for or in respect
      of the recovery of any of sums due to it or any part of such sums
      (including, without limitation, any action or step in connection with
      liquidation, administration, winding-up proceedings or any voluntary
      arrangement or assignment for the benefit of creditors or any similar
      proceedings involving the Borrower or the enforcement of any Security
      created or evidenced by a Security Document securing the Hedging
      Liabilities) other than notifying the Borrower, and the Agent that the
      Borrower is in breach of a Hedging Agreement and reserving its rights to
      take action when permitted to do so by this
  Agreement.

            

    

     

    
      	
              6.  

            	
              PERMITTED
      PAYMENTS

            

    

     

    
      	
              6.1  

            	
              Permitted
      Payments to Senior Creditors

            

    

     

    The
Obligors may make Permitted Payments to the Senior Creditors from time to time
in accordance with Clause 7.4 (Withdrawals from the Onshore
Proceeds Account) of the Senior Facility Agreement.

     

    
      	
              6.2  

            	
              Payments
      to Subordinated Lenders

            

    

     

    The
Borrower may not make any payments in respect of the Subordinated Liabilities
save for payments in respect of Parent Operating Expenses in accordance with the
terms of the Senior Facility Agreement.

     

    
      	
              6.3  

            	
              Payment
      obligations continue

            

    

     

    No
Obligor shall be released from the liability to make any payment (including of
default interest, which shall continue to accrue) under any Finance Document by
the operation of this Clause 6 even if its obligation to make that payment is
restricted at any time by the terms of this Clause 6.

     

    
      	
              7.  

            	
              ENTITLEMENT
      TO ENFORCE

            

    

     

    
      	
              7.1  

            	
              Subordinated
      Lenders:  Permitted
Enforcement

            

    

     

    Subject
to Clause 8 (Effect of
Insolvency Event), the Subordinated Lenders shall not be entitled to take
any Enforcement Action unless all the Liabilities of the Senior Creditors have
been repaid and discharged in full.

     

    
      	
              7.2  

            	
              Group
      Subordinated Lenders:  Permitted
  Enforcement

            

    

     

    Subject
to Clause 8 (Effect of
Insolvency Event), the Group Subordinated Lenders shall not be entitled
to take any Enforcement Action unless all the Liabilities of the Senior
Creditors have been repaid and discharged in full.

     

    
      	
              7.3  

            	
              Hedging
      Banks:  Permitted
Enforcement

            

    

     

    Subject
to Clause 8 (Effect of
Insolvency Event) and without prejudice to each Hedging Bank’s rights
under Clause 11.1 (Instructing
Group’s directions), the Hedging Banks shall not take any Enforcement
Action at any time except that they may terminate or close out any Hedging
Transaction prior to its stated maturity (and shall notify the Agent if they do
so) if:

     

    
      	
              (a)  

            	
              the
      Senior Lenders have accelerated their Liabilities or declared them
      prematurely due and payable;

            

    

     

    
      
        
          
            	
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              (b)  

            	
              the
      Borrower has defaulted on a payment due under the Hedging Agreements
      (after allowing any applicable notice or grace periods) and the default
      has continued unwaived for more than 30 days after notice of that default
      has been given to the Agent;

            

    

     

    
      	
              (c)  

            	
              it
      becomes unlawful for the relevant Hedging Bank or the Borrower to give
      effect to any of its obligations under, and as contemplated by, the
      relevant Hedging Agreement; or

            

    

     

    
      	
              (d)  

            	
              the
      consent of the Majority Senior Lenders is
  obtained.

            

    

     

    
      	
              8.  

            	
              EFFECT
      OF INSOLVENCY EVENT

            

    

     

    
      	
              8.1  

            	
              Acceleration
      and claim

            

    

     

    After the
occurrence of an Insolvency Event in relation to any Obligor, each Senior Lender
or Hedging Bank shall be entitled (if it has not already done so) to (and, if so
directed by the  Agent, each Subordinated Lender or Group Subordinated
Lender shall) exercise any right it may have in respect of that Obligor
to:

     

    
      	
              (a)  

            	
              accelerate
      any of its Liabilities or declare them prematurely due and payable or
      payable on demand or (in the case of a Hedging Bank) prematurely close out
      or terminate any Hedging
Liabilities;

            

    

     

    
      	
              (b)  

            	
              make
      a demand under any guarantee, indemnity or other assurance against loss in
      respect of any Liabilities of that
Obligor;

            

    

     

    
      	
              (c)  

            	
              exercise
      any right of set off or take or receive any payment in respect of any
      Liabilities; or

            

    

     

    
      	
              (d)  

            	
              claim
      and prove in the liquidation of that Obligor for the Liabilities owing to
      it.

            

    

     

    
      	
              8.2  

            	
              Payment
      of distributions

            

    

     

    After the
occurrence of an Insolvency Event in relation to any Obligor, the person
responsible for the distribution of the assets of that Obligor shall be directed
to pay any distributions in respect of any of the Subordinated Liabilities to
the Security Trustee until the Senior Liabilities have been paid in
full.

     

    
      	
              8.3  

            	
              Set-Off

            

    

     

    To the
extent that any of the Liabilities is discharged by way of set-off (mandatory or
otherwise) after the occurrence of an Insolvency Event, any Lender or Hedging
Bank which benefited from that set-off shall pay an amount equal to the amount
of its Liabilities discharged by that set-off to the Security Trustee for
application in accordance with Clause 13 (Application of
Proceeds).

     

    
      	
              8.4  

            	
              Filing
      of claims

            

    

     

    After the
occurrence of an Insolvency Event each of the Secured Parties irrevocably
authorise the Security Trustee to:

     

    
      	
              (a)  

            	
              take
      any Enforcement Action (in accordance with the terms of this
      Agreement);

            

    

     

    
      	
              (b)  

            	
              demand,
      sue, prove and give receipt for any or all of the
    Liabilities;

            

    

     

    
      
        
          
            	
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              (c)  

            	
              collect
      and receive all distributions on, or on account of, any or all of the
      Liabilities; and

            

    

     

    
      	
              (d)  

            	
              file
      claims, take proceedings and do all other things the Security Trustee
      considers reasonably necessary to recover the
  Liabilities.

            

    

     

    
      	
              8.5  

            	
              Further
      Assurances

            

    

     

    The
Lenders and Hedging Banks will do all things that the Security Trustee
reasonably requests in order to give effect to this Clause 8 and, if the
Security Trustee is not entitled to take any of the actions contemplated by this
Clause 8 or if the Security Trustee requests any Lender or Hedging Bank to take
that action, that Lender or Hedging Bank will undertake those actions itself in
accordance with the reasonable instructions of the Security
Trustee.

     

    
      	
              8.6  

            	
              Subordinated
      Lenders:  power of
attorney

            

    

     

    Each
Subordinated Lender by way of security for its obligations under this Agreement,
irrevocably appoints the Security Trustee to be its attorney to do anything
which that Subordinated Lender has authorised the Security Trustee or any other
Party to do under this Agreement or is itself required to do under this
Agreement but has failed to do (and the Security Trustee may delegate that power
on such terms as it sees fit).

     

    
      	
              9.  

            	
              TURNOVER
      OF RECEIPTS

            

    

     

    
      	
              9.1  

            	
              Turnover
      by the Lenders and Hedging Banks

            

    

     

    Subject
to Clause 9.2 (Permitted
assurance and receipts) if at any time prior to the discharge in full of
the Liabilities of the Senior Creditors, any Lender or Hedging Bank receives or
recovers:

     

    
      	
              (a)  

            	
              any
      payment or distribution of, or on account of or in relation to, any of the
      Liabilities which is not permitted by either Clause 6 (Permitted Payments) or
      Clause 13 (Application
      of Proceeds);

            

    

     

    
      	
              (b)  

            	
              any
      amount by way of set-off in respect of any of the Liabilities owed to them
      which does not give effect to a payment permitted by Clause 6 (Permitted
      Payments);

            

    

     

    
      	
              (c)  

            	
              the
      proceeds of any enforcement of any Transaction Security except in
      accordance with Clause 13 (Application of
      Proceeds); or

            

    

     

    
      	
              (d)  

            	
              any
      distribution in cash or in kind made as a result of the occurrence of an
      Insolvency Event in respect of any
Obligor,

            

    

     

    that
Lender or Hedging Bank will:

     

    
      	
              (i)  

            	
              in
      relation to receipts and recoveries described in paragraphs (a), (c) and
      (d) above:

            

    

     

    
      	
              (A)  

            	
              hold
      an amount of that receipt or recovery equal to the Relevant Liabilities
      (or if less, the amount received or recovered) on trust for the Security
      Trustee and promptly pay that amount to the Security Trustee for
      application in accordance with the terms of this Agreement;
      and

            

    

     

    
      
        
          
            	
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              (B)  

            	
              promptly
      pay an amount equal to the amount (if any) by which the receipt or
      recovery exceeds the Relevant Liabilities to the Security Trustee for
      application in accordance with the terms of this Agreement;
      and

            

    

     

    
      	
              (ii)  

            	
              in
      relation to recoveries described in paragraph (b) above, promptly pay an
      amount equal to that receipt or recovery to the Security Trustee to be
      held on trust by the Security Trustee for application in accordance with
      the terms of this Agreement.

            

    

     

    
      	
              9.2  

            	
              Permitted
      assurance and receipts

            

    

     

    Nothing
in this Agreement shall restrict the ability of any Senior Creditor
to:

     

    
      	
              (a)  

            	
              arrange
      with any person (other than a member of the Group) any assurance against
      loss in respect of, or reduction of its credit exposure to, the Borrower
      (including assurance by way of credit based derivative or
      sub-participation); or

            

    

     

    
      	
              (b)  

            	
              to
      receive or recover any sum in respect of its Liabilities as a result of
      any assignment or transfer permitted by Clause 16 (Change of
      Party),

            

    

     

    and that
Senior Creditor shall not be obliged to account to any other Party for any sum
received by it as a result of that action.

     

    
      	
              9.3  

            	
              Sums
      received by Obligors

            

    

     

    If any of
the Obligors receives or recovers any sum which, under the terms of any of the
Finance Documents, should have been paid to the Security Trustee, that Obligor
will:

     

    
      	
              (a)  

            	
              hold
      an amount of that receipt or recovery equal to the Relevant Liabilities
      (or if less, the amount received or recovered) on trust for the Security
      Trustee and promptly pay that amount to the Security Trustee for
      application in accordance with the terms of this Agreement;
      and

            

    

     

    
      	
              (b)
       

            	
              promptly
      pay an amount equal to the amount (if any) by which the receipt or
      recovery exceeds the Relevant Liabilities to the Security Trustee for
      application in accordance with the terms of this
  Agreement.

            

    

     

    
      	
              9.4  

            	
              Saving
      provision

            

    

     

    If, for
any reason, any of the trusts expressed to be created in this Clause 9 (Turnover of Receipts) should
fail or be unenforceable, the affected Lender, Hedging Bank or Obligor will
promptly pay an amount equal to that receipt or recovery to the Security Trustee
to be held on trust by the Security Trustee for application in accordance with
the terms of this Agreement.

     

    
      	
              10.  

            	
              SHARING

            

    

     

    
      	
              10.1  

            	
              Recovering
      Party’s rights

            

    

     

    
      	
              (a)  

            	
              Any
      amount paid by a Lender or Hedging Bank (a “Recovering Party”) to
      the Security Trustee under Clause 8 (Effect of Insolvency
      Event) or Clause 9 (Turnover of Receipts)
      shall be treated as having been paid by the relevant Obligor and
      distributed in accordance with the terms of this
  Agreement.

            

    

     

    
      
        
          
            	
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              (b)  

            	
              On
      a distribution of that amount by the Security Trustee, the Recovering
      Party will be subrogated to the rights of the Lenders or Hedging Banks
      which have shared in the
redistribution.

            

    

     

    
      	
              (c)  

            	
              If
      and to the extent that the Recovering Party is unable to rely on its
      rights under paragraph (b) of this Clause 10.1 the relevant Obligor shall
      be liable to the Recovering Party for a debt equal to the amount received
      or recovered by the Recovering Party and paid to the Security Trustee (the
      “Shared Amount”)
      which is immediately due and
payable.

            

    

     

    
      	
              10.2  

            	
              Reversal
      of redistribution

            

    

     

    If any
part of the Shared Amount received or recovered by a Recovering Party becomes
repayable to an Obligor and is repaid by that Recovering Party to that Obligor,
then:

     

    
      	
              (a)  

            	
              each
      Lender or Hedging Bank which has received a share of the relevant Shared
      Amount shall, upon request of the Security Trustee, pay to the Security
      Trustee for the account of that Recovering Party an amount equal to the
      appropriate part of its share of the Shared Amount (together with an
      amount as is necessary to reimburse that Recovering Party for its
      proportion of any interest on the Shared Amount which that Recovering
      Party is required to pay); and

            

    

     

    
      	
              (b)  

            	
              that
      Recovering Party’s rights of subrogation in respect of any reimbursement
      shall be cancelled and that Obligor will be liable to each reimbursing
      Lender or Hedging Bank for the amount so
  reimbursed.

            

    

     

    
      	
              10.3  

            	
              Deferral
      of subrogation

            

    

     

    No
Subordinated Lender or Obligor will exercise any rights which it may have by
reason of the performance by it of its obligations under the Finance Documents
to take the benefit (in whole or in part and whether by way of subrogation or
otherwise) of any rights under the Finance Documents of any Senior Lender which
ranks ahead of it in accordance with the priorities set out in Clause 2 (Ranking and Priority) until
such time as all of the Liabilities of each Senior Lender have been irrevocably
paid in full.

     

    
      	
              11.  

            	
              ENFORCEMENT
      OF SECURITY

            

    

     

    
      	
              11.1  

            	
              Instructing
      Group’s directions

            

    

     

    The
Security Trustee will enforce the Transaction Security only at the request of
Instructing Group.  At all times after the request to commence
enforcement has been issued and subject to the terms of this Agreement, the
Security Trustee will act on the directions of the Instructing Group, who shall
be entitled to give directions and do any other things in relation to the
enforcement of the Transaction Security (including in connection with, but not
limited to, the disposal, collection or realisation of assets subject to the
Transaction Security) that it considers appropriate including (without
limitation) determining the timing and manner of enforcement against any
particular person or asset.

     

    
      
        
          
            	
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              11.2  

            	
              Obligors’
      waiver

            

    

     

    To the
extent permitted under applicable law and subject to Clause 13 (Application of Proceeds),
each of the Obligors waives all rights it may otherwise have to require that the
Transaction Security be enforced in any particular order or manner or at any
particular time or that any sum received or recovered from any person, or by
virtue of the enforcement of any of the Transaction Security or of any other
security interest, which is capable of being applied in or towards discharge of
any of the Secured Obligations is so applied.

     

    
      	
              12.  

            	
              DISPOSALS
      BY SECURITY TRUSTEE

            

    

     

    If any
assets are sold or otherwise disposed of by (or on behalf of) the Security
Trustee or by an Obligor at the request of the Security Trustee either as a
result of the enforcement of any of the Transaction Security or if that disposal
is permitted under the Senior Facility Agreement:

     

    
      	
              (a)  

            	
              the
      Security Trustee shall be authorised (at the cost of the Obligors) to
      release those assets from the Transaction Security and is authorised to
      execute, on behalf of and without the need for any further authority from,
      any of the Lenders or Hedging Banks, any release of the Transaction
      Security or any other claim over those assets and to issue any
      certificates of non-crystallisation of any floating charge that may, in
      the absolute discretion of the Security Trustee, be considered necessary
      or desirable;

            

    

     

    
      	
              (b)  

            	
              if
      the asset which is disposed of consists of all of the shares (which are
      held by an Obligor) in the capital of an Obligor or any holding company of
      that Obligor, the Security Trustee is authorised to, and may execute on
      behalf of each Lender, Hedging Bank and each Obligor, as appropriate, a
      release of the Obligor or holding company whose shares are being disposed
      of from all liabilities it may have to any Lender, Hedging Bank or
      Obligor, both actual and contingent in its capacity as a guarantor or
      borrower (including any liability to any other Obligor by way of
      guarantee, contribution, subrogation or indemnity) and a release of any
      Transaction Security granted by that Obligor or holding company over any
      of its assets under any of the Security Documents;
  and

            

    

     

    
      	
              (c)  

            	
              the
      Lenders, Hedging Banks and Obligors shall execute any releases or other
      documents that the Security Trustee may consider to be necessary to give
      effect to those releases provided that the
      proceeds of that disposal are applied in accordance with this
      Agreement.

            

    

     

    
      	
              13.  

            	
              APPLICATION
      OF PROCEEDS

            

    

     

    
      	
              13.1  

            	
              Order
      of application

            

    

     

    All
amounts from time to time received or recovered by the Security Trustee pursuant
to the terms of any Finance Document or in connection with the realisation or
enforcement of all or any part of the Transaction Security shall be held by the
Security Trustee on trust to apply them at any time the Security Trustee sees
fit, to the extent permitted by applicable law (and subject to the provisions of
this Clause 13 (Application of
Proceeds)), in the following order of priority:

     

    
      	
              (a)  

            	
              in
      discharging any sums owing to the Security Trustee (in its capacity as
      security trustee), any Receiver or any
Delegate;

            

    

     

    
      
        
          
            	
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              (b)  

            	
              in
      payment of all costs and expenses reasonably incurred by the Agent or any
      Senior Creditor in connection with any realisation or enforcement of the
      Transaction Security taken in accordance with the terms of this Agreement
      or any action taken at the request of the Security Trustee under Clause
      8.5 (Further
      Assurances);

            

    

     

    
      	
              (c)  

            	
              in
      payment to the Agent and Account Bank of all amounts due and payable to
      them under the Finance Documents;

            

    

     

    
      	
              (d)  

            	
              in
      payment to the Agent on behalf of the Senior Lenders and Hedging Banks for
      application (in accordance with the terms of the Senior Finance Documents
      and Hedging Agreements) towards the discharge of the Senior Liabilities on
      a pari passu
      basis;

            

    

     

    
      	
              (e)  

            	
              in
      payment to the Subordinated Lenders for application on a pari passu
      basis  towards the discharge of the Subordinated
      Liabilities;

            

    

     

    
      	
              (f)  

            	
              if
      none of the Obligors is not under any further actual or contingent
      liability under any Finance Document, in payment to any person to whom the
      Security Trustee is obliged to pay in priority to that Obligor;
      and

            

    

     

    
      	
              (g)  

            	
              the
      balance, if any, in payment to the relevant
  Obligor.

            

    

     

    
      	
              13.2  

            	
              Investment
      of proceeds

            

    

     

    Prior to
the application of the proceeds of the Trust Property in accordance with Clause
13.1 (Order of
application) the Security Trustee may, at its discretion, hold all or
part of those proceeds in an interest bearing suspense or impersonal account(s)
in the name of the Security Trustee or the Agent with such financial institution
(including itself) and for so long as the Security Trustee shall think fit (the
interest being credited to the relevant account) pending the application from
time to time of those monies at the Security Trustee’s discretion in accordance
with the provisions of this Clause 13.2.

     

    
      	
              13.3  

            	
              Currency
      conversion

            

    

     

    
      	
              (a)  

            	
              For
      the purpose of, or pending the discharge of, any of the Secured
      Obligations the Security Trustee may convert any moneys received or
      recovered by the Security Trustee from one currency to another, at the
      spot rate at which the Security Trustee is able to purchase the currency
      in which the Secured Obligations are due with the amount
      received.

            

    

     

    
      	
              (b)  

            	
              The
      obligations of any Obligor to pay in the due currency shall only be
      satisfied to the extent of the amount of the due currency purchased after
      deducting the costs of conversion.

            

    

     

    
      	
              13.4  

            	
              Permitted
      deductions

            

    

     

    The
Security Trustee shall be entitled (a) to set aside by way of reserve amounts
required to meet and (b) to make and pay, any deductions and withholdings (on
account of taxes or otherwise) which it is or may be required by any applicable
law to make from any distribution or payment made by it under this Agreement,
and to pay all Taxes which may be assessed against it in respect of any of the
Trust Property, or as a consequence of performing its duties, or by virtue of
its capacity as Security Trustee under any of the Finance Documents or otherwise
(other than in connection with its remuneration for performing its duties under
this Agreement).

     

    
      
        
          
            	
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              13.5  

            	
              Good
      discharge

            

    

     

    
      	
              (a)  

            	
              Any
      payment to be made in respect of the Secured Obligations by the Security
      Trustee may be made to the Agent on behalf of the Senior Lenders or the
      Hedging Banks, or directly to the Subordinated Lenders and any payment
      made in that way shall be a good discharge, to the extent of that payment,
      by the Security Trustee.

            

    

     

    
      	
              (b)  

            	
              The
      Security Trustee is under no obligation to make the payments to the Agent
      or the Subordinated Lenders under paragraph (a) of this Clause 13.5 in the
      same currency as that in which the Liabilities of the relevant Lender or
      Hedging Bank are denominated.

            

    

     

    
      	
              13.6  

            	
              Application
      of Parallel Debt

            

    

     

    In
consideration for the covenants given to the Security Trustee by each Obligor in
Clause 14.2 (Parallel Debt
(Covenant to pay the Security Trustee)), the Security Trustee agrees with
each Obligor to apply all moneys from time to time paid by such Obligor to the
Security Trustee in accordance with the provisions of Clause 13.1 (Order of
Application).

     

    
      	
              13.7  

            	
              Calculation
      of amounts

            

    

     

    For the
purpose of calculating any person’s share of any sum payable to or by it, the
Security Trustee shall be entitled to:

     

    
      	
              (a)  

            	
              notionally
      convert the Liabilities owed to any person into a common base currency
      (decided in its discretion by the Security Trustee), that notional
      conversion to be made at the spot rate at which the Security Trustee is
      able to purchase the notional base currency with the actual currency of
      that person ‘s Liabilities at the time at which that calculation is to be
      made; and

            

    

     

    
      	
              (b)  

            	
              assume
      that all moneys received or recovered as a result of the enforcement or
      realisation of the Trust Property are applied in discharge of the
      Liabilities in accordance with the terms of the Finance Documents under
      which those Liabilities have
arisen.

            

    

     

    
      	
              14.  

            	
              THE
      SECURITY TRUSTEE

            

    

     

    
      	
              14.1  

            	
              Trust

            

    

     

    
      	
              (a)  

            	
              The
      Security Trustee declares that it shall hold the Trust Property on trust
      for the Secured Parties on the terms contained in this
      Agreement.

            

    

     

    
      	
              (b)  

            	
              Each
      of the parties to this Agreement agrees that the Security Trustee shall
      have only those duties, obligations and responsibilities expressly
      specified in this Agreement or in the Security Documents to which the
      Security Trustee is expressed to be a party (and no others shall be
      implied).

            

    

     

    
      
        
          
            	
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              14.2  

            	
              Parallel
      Debt (Covenant to pay the Security
Trustee)

            

    

     

    
      	
              (a)  

            	
              Notwithstanding
      any other provision of this Agreement, each Obligor hereby irrevocably and
      unconditionally undertakes to pay to the Security Trustee, as creditor in
      its own right and not as representative of the other Secured Parties, sums
      equal to and in the currency of each amount payable by such Obligor to
      each of the Secured Parties under each of the Finance Documents as and
      when that amount falls due for payment under the relevant Finance Document
      or would have fallen due but for any discharge resulting from failure of
      another Secured Party to take appropriate steps, in insolvency proceedings
      affecting that Obligor, to preserve its entitlement to be paid that
      amount.

            

    

     

    
      	
              (b)  

            	
              The
      Security Trustee shall have its own independent right to demand payment of
      the amounts payable by each Obligor under this Clause 14.2 (Parallel Debt (Covenant to pay the Security
      Trustee)), irrespective of any discharge of such Obligor’s
      obligation to pay those amounts to the other Secured Parties resulting
      from failure by them to take appropriate steps, in insolvency proceedings
      affecting that Obligor, to preserve their entitlement to be paid those
      amounts.

            

    

     

    
      	
              (c)  

            	
              Any
      amount due and payable by an Obligor to the Security Trustee under this
      Clause 14.2 (Parallel
      Debt (Covenant to
      pay the Security Trustee)) shall be decreased to the extent that
      the other Secured Parties have received (and are able to retain) payment
      in full of the corresponding amount under the other provisions of the
      Finance Documents and any amount due and payable by an Obligor to the
      other Secured Parties under those provisions shall be decreased to the
      extent that the Security Trustee has received (and is able to retain)
      payment in full of the corresponding amount under this Clause 14.2 (Parallel Debt (Covenant to pay the Security
      Trustee)).

            

    

     

    
      	
              (d)  

            	
              The
      rights of the Secured Parties (other than the Security Trustee) to receive
      payment of amounts payable by each Obligor under the Finance Documents are
      several and are separate and independent from, and without prejudice to,
      the rights of the Security Trustee to receive payment under this Clause
      14.2 (Parallel
      Debt (Covenant to
      pay the Security Trustee)). Each Obligor’s parallel obligation
      under this Clause 14.2 (Parallel Debt (Covenant to pay the Security
      Trustee)) towards the Security Trustee constitutes a single and
      separate obligation from any other debt of each Obligor under the Finance
      Documents.

            

    

     

    
      	
              (e)  

            	
              Notwithstanding
      that the amounts payable by each Obligor under the Finance Documents (the
      “Principal
      Obligations”) may be expressed in different currencies, the
      parallel obligation of each Obligor to the Security Trustee under this
      Clause 14.2 (Parallel
      Debt (Covenant to
      pay the Security Trustee)) (each a “Parallel Obligation”)
      shall be expressed in dollars.  For the purposes of establishing
      the amount of the Parallel Obligation from time to time, the Principal
      Obligations expressed in other currencies shall be notionally converted to
      zloty at the Agent’s Spot Rate of
Exchange.

            

    

     

    
      	
              14.3  

            	
              No
      independent power

            

    

     

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

     

    
      
        
          
            	
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              14.4  

            	
              Security
      Trustee’s instructions

            

    

     

    The
Security Trustee shall:

     

    
      	
              (a)  

            	
              unless
      a contrary indication appears in this Agreement, act in accordance with
      any instructions given to it by the Instructing Group  and shall
      be entitled to assume that, unless it has received actual notice of
      revocation, that those instructions or directions have not been
      revoked;

            

    

     

    
      	
              (b)  

            	
              be
      entitled to request instructions, or clarification of any direction, from
      the Instructing Group as to whether, and in what manner, it should
      exercise or refrain from exercising any rights, powers and discretions and
      the Security Trustee may refrain from acting unless and until those
      instructions or clarification are received by
  it.

            

    

     

    
      	
              14.5  

            	
              Security
      Trustee’s actions

            

    

     

    Subject
to the provisions of Clause 14.4 (Security Trustee’s
instructions):

     

    
      	
              (a)  

            	
              the
      Security Trustee may, in the absence of any instructions to the contrary,
      take such action in the exercise of any of its powers and duties under the
      Finance Documents which in its absolute discretion it considers to be for
      the protection and benefit of all the Secured Parties;
  and

            

    

     

    
      	
              (b)  

            	
              at
      any time after receipt by the Security Trustee of notice from the
      Instructing Group directing the Security Trustee to exercise all or any of
      its rights, remedies, powers or discretions under any of the Finance
      Documents, the Security Trustee may, and shall if so directed by the
      Instructing Group, take any action as in its sole discretion it thinks fit
      to enforce the Transaction
Security.

            

    

     

    
      	
              14.6  

            	
              Security
      Trustee’s discretions

            

    

     

    The
Security Trustee may:

     

    
      	
              (a)  

            	
              assume
      (unless it has received actual notice to the contrary from the Instructing
      Group in its capacity as security trustee for the Secured Parties) that
      (i) no Default has occurred and no Obligor is in breach of or default
      under its obligations under any of the Finance Documents and (ii) any
      right, power, authority or discretion vested by any Finance Document in
      any person has not been exercised;

            

    

     

    
      	
              (b)  

            	
              if
      it receives any instructions or directions from the Instructing Group to
      take any action in relation to the Transaction Security, assume that all
      applicable conditions under the Finance Documents for taking that action
      have been satisfied;

            

    

     

    
      	
              (c)  

            	
              engage,
      pay for and rely on the advice or services of any lawyers, accountants,
      surveyors or other experts (whether obtained by the Security Trustee or by
      any other Secured Party) whose advice or services may at any time seem
      necessary, expedient or desirable;

            

    

     

    
      	
              (d)  

            	
              rely
      upon any communication or document believed by it to be genuine and, as to
      any matters of fact which might reasonably be expected to be within the
      knowledge of a Secured Party, the Subordinated Lender or an Obligor, upon
      a certificate signed by or on behalf of that person;
  and

            

    

     

    
      
        
          
            	
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              (e)  

            	
              refrain
      from acting in accordance with the instructions of the Instructing Group
      (including bringing any legal action or proceeding arising out of or in
      connection with the Finance Documents) until it has received any
      indemnification and/or security that it may in its absolute discretion
      require (whether by way of payment in advance or otherwise) for all costs,
      losses and liabilities which it may incur in bringing any action or
      proceedings.

            

    

     

    
      	
              14.7  

            	
              Security
      Trustee’s obligations

            

    

     

    The
Security Trustee shall promptly inform the Secured Parties of:

     

    
      	
              (a)  

            	
              the
      contents of any notice or document received by it in its capacity as
      Security Trustee from any Obligor under any Finance Document;
      and

            

    

     

    
      	
              (b)  

            	
              the
      occurrence of any Default or any default by an Obligor in the due
      performance of or compliance with its obligations under any Finance
      Document of which the Security Trustee has received notice from any other
      party to this Agreement.

            

    

     

    
      	
              14.8  

            	
              Excluded
      obligations

            

    

     

    Notwithstanding
anything to the contrary expressed or implied in the Finance Documents, the
Security Trustee shall not:

     

    
      	
              (a)  

            	
              be
      bound to enquire as to (i) whether or not any Default has occurred or (ii)
      the performance, default or any breach by an Obligor of its obligations
      under any of the Finance Documents;

            

    

     

    
      	
              (b)  

            	
              be
      bound to account to any other Party for any sum or the profit element of
      any sum received by it for its own
account;

            

    

     

    
      	
              (c)  

            	
              be
      bound to disclose to any other person (including but not limited to any
      Secured Party) (i) any confidential information or (ii) any other
      information if disclosure would or might in its reasonable opinion
      constitute a breach of any law or be a breach of fiduciary
      duty;

            

    

     

    
      	
              (d)  

            	
              be
      under any obligations other than those which are specifically provided for
      in the Finance Documents; or

            

    

     

    
      	
              (e)  

            	
              have
      or be deemed to have any duty, obligation or responsibility to, or
      relationship of trust or agency with, any Obligor or any Subordinated
      Lender.

            

    

     

    
      	
              14.9  

            	
              Exclusion
      of Security Trustee’s liability

            

    

     

    The
Security Trustee shall not accept responsibility or be liable for:

     

    
      	
              (a)  

            	
              the
      adequacy, accuracy and/or completeness of any information (whether oral or
      written) supplied by the Security Trustee or any other person in or in
      connection with any Finance Document or the Information Memorandum or the
      transactions contemplated in the Finance Documents, or any other
      agreement, arrangement or document entered into, made or executed in
      anticipation of, under or in connection with any Finance
      Document;

            

    

     

    
      
        
          
            	
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              (b)  

            	
              the
      legality, validity, effectiveness, adequacy or enforceability of any
      Finance Document, the Trust Property or any other agreement, arrangement
      or document entered into, made or executed in anticipation of, under or in
      connection with any Finance Document or the Trust
  Property;

            

    

     

    
      	
              (c)  

            	
              any
      losses to any person or any liability arising as a result of taking or
      refraining from taking any action in relation to any of the Finance
      Documents, the Trust Property or otherwise, whether in accordance with an
      instruction from the Agent or otherwise unless directly caused by its
      gross negligence or wilful
misconduct;

            

    

     

    
      	
              (d)  

            	
              the
      exercise of, or the failure to exercise, any judgment, discretion or power
      given to it by or in connection with any of the Finance Documents, the
      Trust Property or any other agreement, arrangement or document entered
      into, made or executed in anticipation of, under or in connection with the
      Finance Documents or the Trust Property;
or

            

    

     

    
      	
              (e)  

            	
              any
      shortfall which arises on the enforcement or realisation of the Trust
      Property.

            

    

     

    
      	
              14.10  

            	
              No
      proceedings

            

    

     

    No Party
(other than the Security Trustee) may take any proceedings against any officer,
employee or agent of the Security Trustee in respect of any claim it might have
against the Security Trustee or in respect of any act or omission of any kind by
that officer, employee or agent in relation to any Finance Document or any Trust
Property and any officer, employee or agent of the Security Trustee may rely on
this Clause subject to Clause 1.6 (Third Party Rights) and the
provisions of the Third Parties Act.

     

    
      	
              14.11  

            	
              Own
      responsibility

            

    

     

    Without
affecting the responsibility of any Obligor for information supplied by it or on
its behalf in connection with any Finance Document, each Secured Party confirms
to the Security Trustee that it has been, and will continue to be, solely
responsible for making its own independent appraisal and investigation of all
risks arising under or in connection with any Finance Document including but not
limited to:

     

    
      	
              (a)  

            	
              the
      financial condition, creditworthiness, affairs, status and nature of each
      member of the Group;

            

    

     

    
      	
              (b)  

            	
              the
      legality, validity, effectiveness, adequacy and enforceability of any
      Finance Document, the Trust Property and any other agreement, arrangement
      or document entered into, made or executed in anticipation of, under or in
      connection with any Finance Document or the Trust
  Property;

            

    

     

    
      	
              (c)  

            	
              whether
      that Secured Party has recourse, and the nature and extent of that
      recourse, against any Party or any of its respective assets under or in
      connection with any Finance Document, the Trust Property, the transactions
      contemplated by the Finance Documents or any other agreement, arrangement
      or document entered into, made or executed in anticipation of, under or in
      connection with any Finance Document or the Trust
  Property;

            

    

     

    
      
        
          
            	
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              (d)  

            	
              the
      adequacy, accuracy and/or completeness of the Information Memorandum and
      any information provided by the Security Trustee or by any other person
      under or in connection with any Finance Document, the transactions
      contemplated by the Finance Documents or any other agreement, arrangement
      or document entered into, made or executed in anticipation of, under or in
      connection with any Finance Document;
and

            

    

     

    
      	
              (e)  

            	
              the
      right or title of any person in or to, or the value or sufficiency of any
      part of the Trust Property, the priority of any of the Transaction
      Security or the existence of any Security affecting the Trust
      Property,

            

    

     

    and each
Secured Party warrants to the Security Trustee that it has not relied on and
will not at any time rely on the Security Trustee in respect of any of these
matters.

     

    
      	
              14.12  

            	
              No
      responsibility to perfect Transaction
Security

            

    

     

    The
Security Trustee shall not be liable for any failure to:

     

    
      	
              (a)  

            	
              require
      the deposit with it of any deed or document certifying, representing or
      constituting the title of any Obligor to any of the Trust
      Property;

            

    

     

    
      	
              (b)  

            	
              obtain
      any licence, consent or other authority for the execution, delivery,
      legality, validity, enforceability or admissibility in evidence of any of
      the Finance Documents or the Transaction
  Security;

            

    

     

    
      	
              (c)  

            	
              register,
      file or record or otherwise protect any of the Transaction Security (or
      the priority of any of the Transaction Security) under any applicable laws
      in any jurisdiction or to give notice to any person of the execution of
      any of the Finance Documents or of the Transaction
    Security;

            

    

     

    
      	
              (d)  

            	
              take,
      or to require any Obligor to take, any steps to perfect its title to any
      of the Trust Property or to render the Transaction Security effective or
      to secure the creation of any ancillary Security under the laws of any
      jurisdiction; or

            

    

     

    
      	
              (e)  

            	
              require
      any further assurances in relation to any of the Security
      Documents.

            

    

     

    
      	
              14.13  

            	
              Insurance
      by Security Trustee

            

    

     

    
      	
              (a)  

            	
              The
      Security Trustee shall not be under any obligation to insure any of the
      Trust Property, to require any other person to maintain any insurance or
      to verify any obligation to arrange or maintain insurance contained in the
      Finance Documents.  The Security Trustee shall not be
      responsible for any loss which may be suffered by any person as a result
      of the lack of or inadequacy of any such
  insurance.

            

    

     

    
      	
              (b)  

            	
              Where
      the Security Trustee is named on any insurance policy as an insured party,
      it shall not be responsible for any loss which may be suffered by reason
      of, directly or indirectly, its failure to notify the insurers of any
      material fact relating to the risk assumed by such insurers or any other
      information of any kind, unless the Agent or the Subordinated Lenders
      shall have requested it to do so in writing and the Security Trustee shall
      have failed to do so within fourteen days after receipt of that
      request.

            

    

     

    
      
        
          
            	
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              14.14  

            	
              Custodians
      and nominees

            

    

     

    The
Security Trustee may appoint and pay any person to act as a custodian or nominee
on any terms in relation to any assets of the trust as the Security Trustee may
determine, including for the purpose of depositing with a custodian this
Agreement or any document relating to the trust created under this Agreement and
the Security Trustee shall not be responsible for any loss, liability, expense,
demand, cost, claim or proceedings incurred by reason of the misconduct,
omission or default on the part of any person appointed by it under this
Agreement or be bound to supervise the proceedings or acts of any
person.

     

    
      	
              14.15  

            	
              Acceptance
      of title

            

    

     

    The
Security Trustee shall be entitled to accept without enquiry, and shall not be
obliged to investigate, any right and title that any Obligor may have to any of
the Trust Property and shall not be liable for or bound to require any Obligor
to remedy any defect in its right or title.

     

    
      	
              14.16  

            	
              Refrain
      from illegality

            

    

     

    The
Security Trustee may refrain from doing anything which in its opinion will or
may be contrary to any relevant law, directive or regulation of any jurisdiction
which would or might otherwise render it liable to any person, and the Security
Trustee may do anything which is, in its opinion, necessary to comply with any
such law, directive or regulation.

     

    
      	
              14.17  

            	
              Business
      with the Obligors

            

    

     

    The
Security Trustee may accept deposits from, lend money to, and generally engage
in any kind of banking or other business with any of the Obligors.

     

    
      	
              14.18  

            	
              Releases

            

    

     

    Upon a
disposal of any of the Trust Property:

     

    
      	
              (a)  

            	
              pursuant
      to the enforcement of the Transaction Security by a Receiver or the
      Security Trustee; or

            

    

     

    
      	
              (b)  

            	
              if
      that disposal is permitted under the Senior Finance
    Documents,

            

    

     

    the
Security Trustee shall (at the cost of the Obligors) release that property from
the Transaction Security and is authorised to execute, without the need for any
further authority from the Secured Parties, any release of the Transaction
Security or other claim over that asset.

     

    
      	
              14.19  

            	
              Winding
      up of trust

            

    

     

    If the
Security Trustee, with the approval of the Instructing Group, determines that
(a) all of the Secured Obligations and all other obligations secured by the
Security Documents have been fully and finally discharged and (b) none of the
Secured Parties is under any commitment, obligation or liability (actual or
contingent) to make advances or provide other financial accommodation to any
Obligor pursuant to the Finance Documents, the trusts set out in this Agreement
shall be wound up and the Security Trustee shall release, without recourse or
warranty, all of the Transaction Security and the rights of the Security Trustee
under each of the Security Documents.

     

    
      
        
          
            	
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              14.20  

            	
              Powers
      supplemental

            

    

     

    The
rights, powers and discretions conferred upon the Security Trustee by this
Agreement shall be supplemental to the Trustee Act 1925 and the Trustee Act 2000
and in addition to any which may be vested in the Security Trustee by general
law or otherwise.

     

    
      	
              14.21  

            	
              Security
      Trustee division separate

            

    

     

    
      	
              (a)  

            	
              In
      acting as security trustee for the Secured Parties, the Security Trustee
      shall be regarded as acting through its trustee division which shall be
      treated as a separate entity from any of its other divisions or
      departments.

            

    

     

    
      	
              (b)  

            	
              If
      information is received by another division or department of the Security
      Trustee, it may be treated as confidential to that division or department
      and the Security Trustee shall not be deemed to have notice of
      it.

            

    

     

    
      	
              14.22  

            	
              Disapplication

            

    

     

    Section 1
of the Trustee Act 2000 shall not apply to the duties of the Security Trustee in
relation to the trusts constituted by this Agreement.  Where there are
any inconsistencies between the Trustee Act 1925 and the Trustee Act 2000 and
the provisions of this Agreement, the provisions of this Agreement shall, to the
extent allowed by law, prevail and, in the case of any inconsistency with the
Trustee Act 2000, the provisions of this Agreement shall constitute a
restriction or exclusion for the purposes of that Act.

     

    
      	
              15.  

            	
              CHANGE
      OF SECURITY TRUSTEE AND DELEGATION

            

    

     

    
      	
              15.1  

            	
              Resignation
      of the Security Trustee

            

    

     

    
      	
              (a)  

            	
              The
      Security Trustee may resign and appoint one of its affiliates as successor
      by giving notice to the Secured
Parties.

            

    

     

    
      	
              (b)  

            	
              Alternatively
      the Security Trustee may resign by giving notice to the Secured Parties in
      which case the Instructing Group may appoint a successor Security Trustee
      (which shall be a Senior Lender).

            

    

     

    
      	
              (c)  

            	
              If
      the Instructing Group have not appointed a successor Security Trustee in
      accordance with paragraph (b) above within 30 days after the notice of
      resignation was given, the Security Trustee (after consultation with the
      Agent) may appoint a successor Security Trustee (which shall be a Senior
      Lender).

            

    

     

    
      	
              (d)  

            	
              The
      retiring Security Trustee shall, at its own cost, make available to the
      successor Security Trustee such documents and records and provide such
      assistance as the successor Security Trustee may reasonably request for
      the purposes of performing its functions as Security Trustee under the
      Finance Documents.

            

    

     

    
      	
              (e)  

            	
              The
      Security Trustee’s resignation notice shall only take effect upon (i) the
      appointment of a successor and (ii) the transfer of all of the Trust
      Property to that successor.

            

    

     

    
      
        
          
            	
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              (f)  

            	
              Upon
      the appointment of a successor, the retiring Security Trustee shall be
      discharged from any further obligation in respect of the Finance Documents
      but shall remain entitled to the benefit of Clause 14 (The Security
      Trustee).  Its successor and each of the other Parties
      shall have the same rights and obligations amongst themselves as they
      would have had if that successor had been an original
    Party.

            

    

     

    
      	
              (g)  

            	
              The
      Instructing Group may, by notice to the Security Trustee, require it to
      resign in accordance with paragraph (b) above.  In this event,
      the Security Trustee shall resign in accordance with paragraph (b)
      above.

            

    

     

    
      	
              15.2  

            	
              Delegation

            

    

     

    
      	
              (a)  

            	
              The
      Security Trustee may, at any time, delegate (by power of attorney or
      otherwise) to any person for any period, all or any of the rights, powers
      and discretions vested in it by any of the Finance
    Documents.

            

    

     

    
      	
              (b)  

            	
              The
      delegation may be made upon any terms and conditions (including the power
      to sub-delegate) and subject to any restrictions that the Security Trustee
      may think fit in the interests of the Secured Parties and it shall not be
      bound to supervise, or be in any way responsible for any loss incurred by
      reason of any misconduct or default on the part of any such delegate or
      sub-delegate.

            

    

     

    
      	
              15.3  

            	
              Additional
      Security Trustees

            

    

     

    
      	
              (a)  

            	
              The
      Security Trustee may at any time appoint (and subsequently remove) any
      person to act as a separate trustee or as a co-trustee jointly with it (i)
      if it considers that appointment to be in the interests of the Secured
      Parties or (ii) for the purposes of conforming to any legal requirements,
      restrictions or conditions which the Security Trustee deems to be relevant
      or (iii) for obtaining or enforcing any judgment in any jurisdiction, and
      the Security Trustee shall give prior notice to the Obligors and the
      Secured Parties of that
appointment.

            

    

     

    
      	
              (b)  

            	
              Any
      person so appointed shall have the rights, powers and discretions (not
      exceeding those conferred on the Security Trustee by this Agreement) and
      the duties and obligations that are conferred or imposed by the instrument
      of appointment.

            

    

     

    
      	
              (c)  

            	
              The
      remuneration that the Security Trustee may pay to that person, and any
      costs and expenses incurred by that person in performing its functions
      pursuant to that appointment shall, for the purposes of this Agreement, be
      treated as costs and expenses incurred by the Security
      Trustee.

            

    

     

    
      
        
          
            	
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              16.  

            	
              CHANGE
      OF PARTY

            

    

     

    
      	
              16.1  

            	
              Change
      of Party

            

    

     

    No party
may assign any of its rights and benefits or transfer any of its rights,
benefits and obligations in respect of any Finance Documents or the Liabilities
except as permitted by this Clause 16.

     

    
      	
              16.2  

            	
              Change
      of Lender or Hedging Bank

            

    

     

    
      	
              (a)  

            	
              A
      Senior Lender may assign any of its rights and benefits or transfer any of
      its rights, benefits and obligations in respect of any Senior Finance
      Documents or its Liabilities if that assignment or transfer is in
      accordance with the terms of the Senior Facility Agreement and any
      assignee or transferee has executed and delivered to the Security Trustee
      a Lender Accession Deed.

            

    

     

    
      	
              (b)  

            	
              A
      Subordinated Lender may not assign any of its rights and benefits or
      transfer any of its rights, benefits and obligations in respect of the
      Subordinated Documents or the Subordinated
  Liabilities.

            

    

     

    
      	
              (c)  

            	
              A
      Group Subordinated Lender may not assign any of its rights and benefits or
      transfer any of its rights, benefits and obligations in respect of the
      Liabilities.

            

    

     

    
      	
              (d)  

            	
              A
      Hedging Bank may assign any of its rights and benefits or transfer any of
      its rights, benefits and obligations in respect of any Hedging Agreement
      if the conditions set out in Clause 5.1 (Identity of Hedging
      Banks) and Clause 5.7 (Hedging Bank
      undertakings) have been
satisfied.

            

    

     

    
      	
              (e)  

            	
              A
      Senior Lender which is also Security Trustee may not transfer all of its
      rights, benefits and obligations in respect of any Senior Finance
      Documents or its Liabilities pursuant to (a) if at as a result of such
      transfer the Security Trustee shall not be Senior Lender, and any such
      purported transfer shall be void.

            

    

     

    
      	
              16.3  

            	
              Change
      of Agent

            

    

     

    Any
person which becomes an Agent as defined in, and in accordance with, the terms
of the Senior Facility Agreement, shall at the same time accede to this
Agreement by executing and delivering to the Security Trustee a Lender Accession
Deed.

     

    
      	
              16.4  

            	
              Lender
      Accession Deed

            

    

     

    With
effect from the date of acceptance by the Security Trustee and, if appropriate,
the Agent of a Lender Accession Deed (which shall in each case be accepted as
soon as reasonably practicable after receipt by it of a duly completed Lender
Accession Deed) or, if later the date specified in that Lender Accession
Deed:

     

    
      	
              (a)  

            	
              any
      Party ceasing entirely to be a Lender and/or Agent shall be discharged
      from further obligations towards the Security Trustee and other Parties
      under this Agreement and their respective rights against one another shall
      be cancelled (except in each case for those rights which arose prior to
      that date); and

            

    

     

    
      
        
          
            	
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              (b)  

            	
              as
      from that date, the replacement or new Lender and/or Agent shall assume
      the same obligations, and become entitled to the same rights, as if it had
      been an original Party to this
Agreement.

            

    

     

    
      	
              16.5  

            	
              New
      Obligor

            

    

     

    
      	
              (a)  

            	
              If
      any member of the Group gives any security, guarantee, indemnity or other
      assurance against loss in respect of any of the Liabilities, the Borrower
      will procure that the person giving that assurance becomes a Party to this
      Agreement as an Obligor by executing and delivering to the Security
      Trustee an Obligor Accession Deed.

            

    

     

    
      	
              (b)  

            	
              The
      Borrower shall procure that each Additional Guarantor (as defined in the
      Senior Facility Agreement) will become a Party to this Agreement as an
      Obligor by executing and delivering to the Security Trustee an Obligor
      Accession Deed.

            

    

     

    
      	
              (c)  

            	
              With
      effect from the date of acceptance by the Security Trustee of an Obligor
      Accession Deed or, if later, the date specified in the Obligor Accession
      Deed, the new Obligor shall assume the same obligations and become
      entitled to the same rights as if it had been an original Party to this
      Agreement.

            

    

     

    
      	
              16.6  

            	
              Additional
      Parties

            

    

     

    Each of
the Parties appoints the Security Trustee to receive on its behalf each Obligor
Accession Deed and Lender Accession Deed delivered to the Security Trustee and
to accept and sign it if, in the Security Trustee’s opinion, it is complete and
appears on its face to be authentic and duly executed and until accepted and
signed by the Security Trustee that document shall not be
effective.

     

    
      	
              17.  

            	
              FEES
      AND EXPENSES

            

    

     

    
      	
              17.1  

            	
              Security
      Trustee’s ongoing fees

            

    

     

    
      	
              (a)  

            	
              In
      the event of (i) the occurrence of a Default or (ii) the Security Trustee
      considering it necessary or expedient or (iii) the Security Trustee being
      requested by an Obligor or the Instructing Group to undertake duties which
      the Security Trustee and the Borrower agree to be of an exceptional nature
      and/or outside the scope of the normal duties of the Security Trustee
      under the Finance Documents, the Borrower shall pay to the Security
      Trustee any additional remuneration (together with any applicable VAT) as
      may be agreed between them.

            

    

     

    
      	
              (b)  

            	
              If
      the Security Trustee and the Borrower fail to agree upon the nature of
      those duties or upon any additional remuneration, that dispute shall be
      determined by an investment bank (acting as an expert and not as an
      arbitrator) selected by the Security Trustee and approved by the Borrower
      or, failing that approval, nominated (on the application of the Security
      Trustee) by the President for the time being of the Law Society of England
      and Wales (the costs of that nomination and of the investment bank being
      payable by the Borrower) and the determination of any such investment bank
      shall be final and binding upon the parties to this
    Agreement.

            

    

     

    
      
        
          
            	
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              17.2  

            	
              Transaction
      and enforcement expenses

            

    

     

    The
Borrower shall, from time to time on demand of the Security Trustee, reimburse
the Security Trustee for all costs and expenses (including legal fees) on a full
indemnity basis together with any applicable VAT incurred by the Security
Trustee and any Receiver and Delegate in connection with:

     

    
      	
              (a)  

            	
              the
      negotiation, preparation and execution of this Agreement and the Security
      Documents and the completion of the transactions and perfection of the
      security contemplated in the Security Documents;
  and

            

    

     

    
      	
              (b)  

            	
              the
      exercise, preservation and/or enforcement of any of the rights, powers and
      remedies of the Security Trustee and of the Transaction Security and any
      proceedings instituted by or against the Security Trustee as a consequence
      of taking or holding the Transaction Security or of enforcing those
      rights, powers and remedies.

            

    

     

    
      	
              17.3  

            	
              Stamp
      taxes

            

    

     

    The
Borrower shall pay all stamp, registration, notarial and other taxes or fees to
which this Agreement, the Transaction Security or any judgment given in
connection with them, is or at any time may be, subject and shall, from time to
time, indemnify the Security Trustee on demand against any liabilities, costs,
claims and expenses resulting from any failure to pay or any delay in paying any
tax or fee.

     

    
      	
              17.4  

            	
              Interest
      on demands

            

    

     

    If any
Obligor, Hedging Bank or Lender fails to pay any amount payable by it under this
Agreement on its due date, interest shall accrue on the overdue amount (and be
compounded with it) from the due date up to the date of actual payment (both
before and after judgment and to the extent interest at a default rate is not
otherwise being paid on that sum) at the rate which is two (2) percent, per
annum over the rate at which the Security Trustee was being offered, by prime
banks in the London Interbank Market, deposits in an amount comparable to the
unpaid amounts in the currencies of those amounts for any period(s) that the
Security Trustee may from time to time select.

     

    
      	
              18.  

            	
              INDEMNITIES

            

    

     

    
      	
              18.1  

            	
              Obligor
      indemnity

            

    

     

    The
Obligors jointly and severally shall promptly indemnify the Security Trustee and
every Receiver and Delegate against any cost, loss or liability (together with
any applicable VAT), whether or not reasonably foreseeable, incurred by any of
them:

     

    
      	
              (a)  

            	
              in
      relation to or arising out of:

            

    

     

    
      	
              (i)  

            	
              any
      failure by the Borrower to comply with obligations under Clause 17 (Fees and
      expenses);

            

    

     

    
      	
              (ii)  

            	
              the
      taking, holding, protection or enforcement of the Transaction
      Security;

            

    

     

    
      	
              (iii)  

            	
              the
      exercise of any of the rights, powers, and discretions vested in any of
      them by the Finance Documents or by
law;

            

    

     

    
      
        
          
            	
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              (iv)  

            	
              any
      default by any Obligor in the performance of any of the obligations
      expressed to be assumed by it in the Finance Documents;
  or

            

    

     

    
      	
              (b)  

            	
              which
      otherwise relate to any of the Trust Property or the performance of the
      terms of this Agreement (otherwise than as a result of its gross
      negligence or wilful misconduct).

            

    

     

    
      	
              18.2  

            	
              Priority
      of indemnity

            

    

     

    The
Security Trustee may, in priority to any payment to the Secured Parties,
indemnify itself out of the Trust Property in respect of, and pay and retain,
all sums necessary to give effect to the indemnity in Clause 18.1 (Obligor indemnity) from the
Obligors and shall have a lien on the Transaction Security and the proceeds of
the enforcement of the Transaction Security for all moneys payable to it under
this Clause.

     

    
      	
              18.3  

            	
              Senior
      Creditors’ indemnity to Security
Trustee

            

    

     

    Each
Senior Creditor shall (in the proportion that its Senior Credit Participation
bears to the aggregate of the Senior Credit Participations), indemnify the
Security Trustee, within three business days of demand, against any cost, loss
or liability incurred by the Security Trustee (otherwise than by reason of the
Security Trustee’s gross negligence or wilful misconduct) in acting as Security
Trustee under the Finance Documents (unless the Security Trustee has been
reimbursed by an Obligor pursuant to a Finance Document) and the Obligors shall
indemnify each Senior Creditor against any payment made by it under this
Clause.

     

    
      	
              19.  

            	
              INFORMATION

            

    

     

    
      	
              19.1  

            	
              Information
      and dealing

            

    

     

    The
Lenders and Hedging Banks shall provide to the Security Trustee from time to
time (through the Agent if relevant) any information that the Security Trustee
may reasonably specify as being necessary or desirable to enable the Security
Trustee to perform its functions as Security Trustee.  Each Senior
Creditor shall deal with the Security Trustee exclusively through the Agent and
shall not deal directly with the Security Trustee.

     

    
      	
              19.2  

            	
              Disclosure

            

    

     

    Each
Obligor and Subordinated Lender consents, until such time as all of the
Liabilities owed by it to the Senior Creditors have been discharged in full, to
the disclosure by any of the Senior Creditors to each other of such information
concerning the Obligors as any Senior Creditor shall see fit.

     

    
      	
              20.  

            	
              NOTICES

            

    

     

    
      	
              20.1  

            	
              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.

     

    
      
        
          
            	
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              20.2  

            	
              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 the Finance
Documents is:

     

    
      	
              (a)  

            	
              identified
      with its name below; or

            

    

     

    
      	
              (b)  

            	
              specified
      on the Lender Accession Deed or Obligor Accession Deed to which it is a
      party,

            

    

     

    or any
substitute details which that Party may notify to the Security Trustee (or the
Security Trustee may notify to the other Parties, if a change is made by the
Security Trustee) by not less than five business days’ notice and promptly upon
receipt of any notification of any new or changed details, the Security Trustee
shall notify the other Parties.

     

    
      	
              20.3  

            	
              Delivery

            

    

     

    
      	
              (a)  

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

            

    

     

    
      	
              (i)  

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

            

    

     

    
      	
              (ii)  

            	
              if
      by way of letter, when it has been left at the relevant address or five
      (5) 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 20.2 (Addresses), if addressed to
that department or officer.

     

    
      	
              (b)  

            	
              Any
      communication or document to be made or delivered to the Security Trustee
      will be effective only when actually received by the Security Trustee and
      then only if it is expressly marked for the attention of the department or
      officer identified with the Security Trustee’s signature below (or any
      substitute department or officer as the Security Trustee shall specify for
      this purpose).

            

    

     

    
      	
              (c)  

            	
              Any
      communication or document made or delivered to the Borrower in accordance
      with this Clause 20 (Notices) will be deemed
      to have been made or delivered to each of the
  Obligors.

            

    

     

    
      	
              20.4  

            	
              Electronic
      communication

            

    

     

    
      	
              (a)  

            	
              Any
      communication to be made between the Security Trustee, the Agent, the
      Subordinated Lenders or a Senior Creditor under or in connection with the
      Finance Documents may be made by electronic mail or other electronic
      means, if the Security Trustee, Agent, Subordinated Lenders or Senior
      Creditor:

            

    

     

    
      	
              (i)  

            	
              agree
      that, unless and until notified to the contrary, this is to be an accepted
      form of communication;

            

    

     

    
      	
              (ii)  

            	
              notify
      each other in writing of their electronic mail address and/or any other
      information required to enable the sending and receipt of information by
      that means; and

            

    

     

    
      
        
          
            	
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              (iii)  

            	
              notify
      each other of any change to their address or any other such information
      supplies by them.

            

    

     

    
      	
              (b)  

            	
              Any
      electronic communication made between the Security Trustee, Agent,
      Subordinated Lenders or Senior Creditor will be effective only when
      actually received in readable form and in the case of any electronic
      communication made by a Senior Creditor, the Agent or a Subordinated
      Lender to the Security Trustee only if it is addressed in such a manner as
      the Security Trustee shall specify for this
  purpose.

            

    

     

    
      	
              20.5  

            	
              English
      language

            

    

     

    
      	
              (a)  

            	
              Any
      notice given under or in connection with any Finance Document must be in
      English.

            

    

     

    
      	
              (b)  

            	
              All
      other documents provided under or in connection with any Finance Document
      must be:

            

    

     

    
      	
              (i)  

            	
              in
      English; or

            

    

     

    
      	
              (ii)  

            	
              if
      not in English, and if so required by the Security Trustee, 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.

            

    

     

    
      	
              21.  

            	
              PRESERVATION

            

    

     

    
      	
              21.1  

            	
              Partial
      invalidity

            

    

     

    If, at
any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under any law of any jurisdiction, neither the
legality, validity or enforceability of the remaining provisions nor the
legality, validity or enforceability of that provision under the law of any
other jurisdiction will in any way be affected or impaired.

     

    
      	
              21.2  

            	
              Remedies
      and waivers

            

    

     

    No
failure to exercise, nor any delay in exercising, on the part of any Secured
Party, any right or remedy under this Agreement shall operate as a waiver of any
such right or remedy or constitute an election to affirm this
Agreement.  No election to affirm this Agreement shall be effective
unless it is in writing. No single or partial exercise of any right or remedy
shall prevent any further or other exercise or the exercise of any other right
or remedy.  The rights and remedies provided in this Agreement are
cumulative and not exclusive of any rights or remedies provided by
law.

     

    
      	
              21.3  

            	
              Waiver
      of defences

            

    

     

    The
provisions of this Agreement will not be affected by an act, omission, matter or
thing which, but for this Clause 21.3, would reduce, release or prejudice the
subordination and priorities in this Agreement including:

     

    
      	
              (a)  

            	
              any
      time, waiver or consent granted to, or composition with, any Obligor or
      other person;

            

    

     

    
      
        
          
            	
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              (b)  

            	
              the
      taking, variation, compromise, exchange, renewal or release of, or refusal
      or neglect to perfect, take up or enforce, any rights against, or security
      over assets of, any Obligor or other person or any non-presentation or
      non-observance of any formality or other requirement in respect of any
      instrument or any failure to realise the full value of any Transaction
      Security;

            

    

     

    
      	
              (c)  

            	
              any
      incapacity or lack of power, authority or legal personality of or
      dissolution or change in the members or status of any Obligor or other
      person;

            

    

     

    
      	
              (d)  

            	
              any
      amendment, novation, supplement, extension (whether of maturity or
      otherwise) or restatement (in each case, however fundamental and of
      whatsoever nature, and whether or not more onerous) or replacement of a
      Finance Document or any other document or
  security;

            

    

     

    
      	
              (e)  

            	
              any
      unenforceability, illegality or invalidity of any obligation of any person
      under any Finance Document or any other document or security;
      or

            

    

     

    
      	
              (f)  

            	
              any
      intermediate payment or discharge of any of the Liabilities of the Senior
      Creditors in whole or in part.

            

    

     

    
      	
              21.4  

            	
              Priorities
      not affected

            

    

     

    Except as
otherwise provided in this Agreement the priorities referred to in Clause 2
(Ranking and Priority)
will:

     

    
      	
              (a)  

            	
              not
      be affected by any reduction or increase in the principal amount secured
      by the Transaction Security in respect of the Liabilities of the Senior
      Creditors or by any intermediate reduction or increase in, amendment or
      variation to any of the Finance Documents, or by any variation or
      satisfaction of, any of the Liabilities or any other
      circumstances;

            

    

     

    
      	
              (b)  

            	
              apply
      regardless of the order in which or dates upon which the Finance Documents
      and this Agreement are executed or registered or notice of them is given
      to any person; and

            

    

     

    
      	
              (c)  

            	
              secure
      the Senior Liabilities in the order specified, regardless of the date upon
      which any of the Liabilities arise or of any fluctuations in the amount of
      any of the Liabilities outstanding.

            

    

     

    
      	
              22.  

            	
              COUNTERPARTS

            

    

     

    This
Agreement may be executed in any number of counterparts, and this has the same
effect as if the signatures on the counterparts were on a single copy of this
Agreement.

     

    
      	
              23.  

            	
              GOVERNING
      LAW

            

    

     

    This
Agreement and any non-contractual obligations arising out of or in connection
with it are governed by English law.

     

    
      
        
          
            	
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              24.  

            	
              ENFORCEMENT

            

    

     

    
      	
              24.1  

            	
              Jurisdiction
      of English courts

            

    

     

    
      	
              (a)  

            	
              The
      courts of England have exclusive jurisdiction to settle any dispute
      arising out of or in connection with this Agreement (including a dispute
      relating to the existence, validity or termination of this Agreement or
      the consequences of its nullity or any non-contractual obligation arising
      out of or in connection with this Agreement) (a “Dispute”).

            

    

     

    
      	
              (b)  

            	
              The
      Parties agree that the courts of England are the most appropriate and
      convenient courts to settle Disputes and accordingly no Party will argue
      to the contrary.

            

    

     

    
      	
              (c)  

            	
              This
      Clause 24.1 is for the benefit of the Secured Parties only.  As
      a result, no Secured Party shall be prevented from taking proceedings
      relating to a Dispute in any other courts with jurisdiction.  To
      the extent allowed by law, the Secured Parties may take concurrent
      proceedings in any number of
jurisdictions.

            

    

     

    
      	
              24.2  

            	
              Service
      of Process

            

    

     

    Without
prejudice to any other mode of service allowed under any relevant law, each
Obligor (other than an Obligor incorporated in England and Wales):

     

    
      	
              (a)  

            	
              irrevocably
      appoints Law Debenture Corporate Services Limited as its agent for service
      of process in relation to any proceedings before the English courts in
      connection with this Agreement; and

            

    

     

    
      	
              (b)  

            	
              agrees
      that failure by a process agent to notify the relevant Obligor of the
      process will not invalidate the proceedings
  concerned.

            

    

     

    This Agreement has been entered into
on the date stated at the beginning of this Agreement and executed as a deed by
the Subordinated Lenders and is intended to be and is delivered by them as a
deed on the date specified above.

     

    
      
        
          
            	
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    SCHEDULE
1
FORM
OF OBLIGOR ACCESSION DEED

     

    THIS AGREEMENT is made on
[date]

     

    BETWEEN:

     

    
      	
              (1)  

            	
              [insert full name of new
      Obligor] (the “Acceding Obligor”);
      and

            

    

     

    
      	
              (2)  

            	
              [insert full name of Security
      Trustee] (the “Security Trustee”), for
      itself and each of the other parties to the Intercreditor Deed referred to
      below.

            

    

     

    This
agreement is made on [date] by the Acceding Obligor in relation to an
Intercreditor Deed (the “Intercreditor Deed”) dated [•] August 2010 between
[insert name of Security
Trustee] as security trustee, [insert name of Agent] as
agent, the Lenders and the Borrower.

     

    The
Acceding Obligor has entered into [insert details (date, parties and
description) of relevant Security Documents] (the “Additional Security
Document[s]”) giving Security or a guarantee, indemnity or other
assurance against loss in respect of Liabilities.

     

    IT IS AGREED as
follows:

     

    Terms
defined in the Intercreditor Deed shall, unless otherwise defined in this
Agreement, bear the same meaning when used in this Agreement.

     

    The
Acceding Obligor and the Security Trustee agree that the Security Trustee shall
hold (a) the Security, guarantee, indemnity or other assurance against loss in
respect of Liabilities created or expressed to be created pursuant to the
Additional Security Document[s] and (b) all moneys from time to time received or
recovered by the Security Trustee in connection with the realisation or
enforcement of that Security, guarantee, indemnity or other assurance against
loss in respect of Liabilities, on trust for the Secured Parties on the terms
and conditions contained in the Intercreditor Deed.

     

    The
Acceding Obligor confirms that it intends to be party to the Intercreditor Deed
as an Obligor, undertakes to perform all the obligations expressed to be assumed
by an Obligor under the Intercreditor Deed and agrees that it shall be bound by
all the provisions of the Intercreditor Deed as if it had been an original party
to the Intercreditor Deed.

     

    This
Agreement and any non-contractual obligations arising out of or in connection
with it is governed by, and construed in accordance with, English
law.

     

    THIS AGREEMENT has been signed
on behalf of the Security Trustee and executed as a deed by the Acceding Obligor
and is delivered on the date stated above.

     

    The
Acceding Obligor

     

    EXECUTED
AS A DEED )

     

    by [Full name of Acceding
Obligor] )

     

    The
Security Trustee

     

    [Full name of Security
Trustee]

     

    By:

     

    Date:

     

    
      
        
          
            	
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    SCHEDULE
2
FORM
OF INTERCREDITOR ACCESSION DEED

     

    
      	
              To:

            	
              [Insert full name of current
      Security Trustee], for itself and each of the other Parties to the
      Intercreditor Deed referred to
below.

            

    

     

    THIS
UNDERTAKING is made on [date] by [insert full name of new
Lender/Guarantor/Hedging Bank/Agent] (the “Acceding
[Lender/Guarantor/Hedging Bank/Agent]”) in relation to the Intercreditor Deed
(the “Intercreditor Deed”) dated [•] August 2010 between [INSERT NAME OF
SECURITY TRUSTEE] as security trustee, [INSERT NAMES OF AGENT] as agent, the
Lenders and the Obligor.  Terms defined in the Intercreditor Deed
shall bear the same meanings when used in this Undertaking.

     

    In
consideration of the Acceding [Lender/ Guarantor/Hedging Bank/Agent] being
accepted as [a Senior/Subordinated Lender]/[Guarantor]/[Agent]/[Hedging Bank]
for the purposes of the Intercreditor Deed, the Acceding
[Lender/Guarantor/Hedging Bank/Agent] hereby confirms that, as from [date], it
intends to be party to the Intercreditor Deed as a [[Senior/Subordinated
Lender]/ [Guarantor]/[Agent]/[Hedging Bank], undertakes to perform all the
obligations expressed in the Intercreditor Deed to be assumed by [an Agent]/[a
Senior/Subordinated Lender] [Guarantor]//[Hedging Bank] and agrees that it shall
be bound by all the provisions of the Intercreditor Deed, as if it had been an
original party to the Intercreditor Deed.

     

    [The
following documents, having been approved in accordance with the terms of the
Intercreditor Deed, shall be treated as “Hedging Agreements” for the purpose of
the Intercreditor Deed: [specify
documents].]

     

    This
Undertaking and any non-contractual obligations arising out of or in connection
with it is governed by and construed in accordance with English
law.

     

    THIS UNDERTAKING has been
entered into and executed as a deed by the [Acceding [Lender/Guarantor/Hedging
Bank/Agent] and is delivered on the date stated above.

     

    EXECUTED
AS A DEED

    by [Acceding [Lender/Guarantor/Hedging
Bank/Agent]

    

    By:

     

    Address:

     

    Fax:

     

    
      	
              Accepted
      by the Security Trustee:

            	
              Accepted,
      in the case of Senior Lenders by  [Agent/outgoing
      Agent]

            
	 
      	 
      
	 
      	 
      
	
              for
      and on behalf of

            	
              for
      and on behalf of

            
	
              [Insert actual name of Security
      Trustee]

            	
              [Insert actual name of Agent or
      outgoing Agent as appropriate]

            
	
              Date:

            	
              Date:

            

    

    

     

    
      
        
          
            	
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    SIGNATURES

     

    The
Borrower

     

    As a
Borrower FX ENERGY POLAND SP. Z
O.O

     

    By: /s/
Antoni Minkiewicz

     

    Address:

     

    Fax:

     

    

     

    The
Borrower

     

    As a
Borrower FX ENERGY POLAND SP. Z
O.O

     

    By: /s/
David N. Pierce

     

    David N.
Pierce

     

    Address:
Ul Chalubinskiego 8, 00-613 Warsaw, Poland

     

    Fax:
1-801-486-5575

     

    

     

    The
Original Guarantors

     

    FX
ENERGY, INC.

     

    By: /s/
David N. Pierce

     

    David N.
Pierce

     

    Address:
3006 Highland Drive, Salt Lake City, UT  USA

     

    Fax:
1-801-486-5575

     

    

     

    FX NETHERLANDS PARTNERSHIP
C.V. by:

     

    
      	
              FX
      DRILLING COMPANY, INC.

            	
              FRONTIER
      EXPLORATION COMPANY

            
	
              By:
      /s/ David N. Pierce

            	
              By:
      /s/ Andrew W. Pierce

            
	
              David
      N. Pierce

            	
              Andrew
      W. Pierce

            

    

    acting as
authorised agent

     

    acting in
their capacity as general partners of FX Netherlands Partnership
C.V.

     

    
      
        
          
            	
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    FX
ENERGY NETHERLANDS B.V.

     

    By: /s/
Clay Newton

     

    Address:
Locatellikade 1, 1076 AZ Amsterdam, The Netherlands

     

    Fax:
1-801-486-5575

     

    

     

    The
Agent

     

    THE
ROYAL BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:
135 Bishopsgate, London, EC2M 3UR

     

    Fax: +44
(0) 20 7085 4564

     

    Attention:
Philip A. Pentney

     

    

     

    The
Security Trustee

     

    THE
ROYAL BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:
135 Bishopsgate, London, EC2M 3UR

     

    Fax: +44
(0) 20 7085 4564

     

    Attention:
Philip A. Pentney

     

    

     

    The
Senior Lenders

     

    THE
ROYAL BANK OF SCOTLAND PLC

     

    By: /s/
Kevin Maddick

     

    Address:
135 Bishopsgate, London EC2M 3UR

     

    Fax: +44
(0)20 7085 4003

     

    Attention:
Shenth Ravindra / Emma-Marie Mayes

     

    

     

    
      
        
          
            	
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    ING
BANK N.V.

     

    
      	
              By:
      /s/ M.F.E. de Haan

            	
              /s/
      Michael Klemme

            
	
              M.F.E.
      de Haan

              Managing
      Director

            	
              Michael
      Klemme

              Managing
      Director

            

    

    Address:

     

    Fax:

     

    

     

    KBC
BANK NV

     

    
      	
              By:
      /s/ Katrijn Quaghebeur

            	
              By:
      /s/ David Barry

            

    

    Address:
Havenlaan 2, 1080 Brussels, Belgium

     

    
      	
              Fax:
      32 2 429 8694

            	
              Fax:
      353 603 5437

            

    

    

     

    The
Subordinated Lenders

     

    EXECUTED
as a DEED by

    FX
ENERGY NETHERLANDS B.V.

    

    By: /s/
Clay Newton

     

    Clay
Newton

     

    Address:
Locatellikade 1, 1076 AZ, Amsterdam

     

    Fax:
1-801-486-5575

     

    

     

    
      
        
          
            	
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    The
Group Subordinated Lenders

     

    EXECUTED
as a DEED by

    FX ENERGY NETHERLANDS C.V.
by

    

    
      	
              FX
      DRILLING COMPANY, INC.

            	
              FRONTIER
      EXPLORATION COMPANY

            
	
              By:
      /s/ David N. Pierce

            	
              By:
      /s/ Andrew W. Pierce

            
	
              David
      N. Pierce

            	
              Andrew
      W. Pierce

            

    

    acting as
authorised agent

     

    
      	
              Address:

            	
              Address:

            
	
              Fax:
      1-801-486-5575

            	
              Fax:
      1-801-486-5575

            
	
              Attention:
      David N. Pierce

            	
              Attention:
      Andrew W. Pierce

            

    

    acting in
their capacity as general partners of FX Netherlands Partnership
C.V.

     

    
      
        
          
            	
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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]