Loan Agreement for EUR 15,000 with interest at 5% per annum between EDI Holding (as lender) and EDI Germany (as borrower) dated November 16, 2007 (translated from German to English)
LOAN AGREEMENT
between
Exploration Drilling International Holding GmbH
represented by the Managing Director
Günter Thiemann
Goethestraße 59, 45721 Haltern am See
- in the following referred to as lender -
and
Exploration Drilling International GmbH
represented by the managing director
Rainer Rotthäuser
Goethestrasse 59 in 46721 Haltern am See
- in the following referred to as borrower -
§ 1 Granting of loan
| (1) | The lender grants the borrower a loan in the amount of |
Euro 15,000.00
(in words: Euro fifteen thousand)
| (2) | The loan shall be paid out by transfer into the borrower’s account at the Sparkasse Münsterland Ost, bank code 400 501 50, account number 46 44 46. |
§ 2 Interest, term and repayment of loan
| (1) | The annual interest payable on the loan shall be 5.0 %. | |
| (2) | The term of the loan shall be approximately 13 months, ending on 31/12/2008. | |
| (3) | The loan shall be repaid on 31/12/2008 by transfer into the lender’s account. |
§ 3 Early repayment
The borrower is entitled to repay the loan including accumulated interest in one lump sum at any time, including before the end of the term of the loan. A prepayment penalty shall not be due.
[Initials]
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§ 4 Extraordinary right of cancellation
The lender is entitled to recall the loan effective immediately, if the borrowers’ financial circumstances deteriorate considerably, thus putting the claim of repayment at risk.
§ 5 Securities
The borrower irrevocably transfers all of his claims as managing director or shareholder from any benefits, to which he is entitled, (salary claims, profit distributions, new shares issued, profit and loss transfers, liquidation proceeds, etc.) to the lender.
§ 6 Supplementary agreements, amendments, severability, executed copies
| (1) | There are no supplementary agreements. Amendments, additions as well as deletions of individual provisions of this agreement must be made in writing in order to be effective. | |
| (2) | Should individual provisions of this agreement be invalid, the remainder of the agreement shall not be affected. In this case, the parties to the agreement are required to assume that a replacement provision has been agreed to, which fulfils the economic purpose of the invalid provision as much as possible. | |
| (3) | This contract shall be issued in duplicate. The lender and the borrower shall each receive a copy signed by both parties to the agreement. |
| Haltern, on 16/11/2007 | ||
| [Signature] | ||
| EDI Exploration Drilling International Holding GmbH | EDI Exploration Drilling International GmbH | |
| Managing Director, Günter Thiemann | Managing director, Rainer Rotthäuser | |
| - Lender - | - Borrower - |
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