March 13, 2015

 

 

Commonwealth Bank of Australia,  

599 Lexington Avenue, 17th Floor

New York, NY 10022

Attn:Director, Project Finance

 

 

Ladies and Gentlemen:

Reference is made to that certain Credit Agreement, dated as of July 18, 2014
(as amended, supplemented or otherwise modified from time to time prior to the
date hereof, the “Credit Agreement”), among MDW Pan LLP, as Borrower,
Commonwealth Bank of Australia, as Administrative Agent, Collateral Agent,
Technical Agent and Initial Lender, and the other Lenders named therein from
time to time.  Capitalized terms used but not defined herein shall have the
meanings ascribed to such terms in the Credit Agreement.

1.

Preliminary Statements

WHEREAS, the Borrower is currently not in satisfaction of the Cost to Complete
Test and the Time to Complete Test and, if such circumstance exists for more
than thirty (30) consecutive days, the Borrower will be in default of its
obligations under Section 7.01(y) of the Credit Agreement;

WHEREAS, the Borrower has requested a temporary waiver of its obligations under
Section 7.01(y) of the Credit Agreement (and certain other waivers and consents
as set forth herein, including waivers under the Guaranty);

WHEREAS, in addition to the above, the Lenders have requested additional
information and further due diligence by outside consultants with respect to the
Project; and

WHEREAS, the parties hereto acknowledge that, upon receipt of the additional
information and completion of the due diligence referenced above, the parties
may consider negotiating an amendment to the Credit Agreement, which amendment
may be substantial (it being understood that the Administrative Agent and the
Lenders have not agreed to enter into any such amendment and that only a written
agreement signed by the Administrative Agent and the requisite Lenders will
constitute such an agreement).

                                                                                                                                                        
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

2.

Consents and Waivers

In consideration of the foregoing and in accordance with Section 15.01 of the
Credit Agreement and Section 8.12 of the Guaranty, the Borrower and the
Guarantors hereby request that the Administrative Agent, the Collateral Agent
and the Majority Lenders evidence their approval and consent to the following by
signing the signature pages for such parties attached hereto:

(a)

The covenants set forth in Section 7.01(y) of the Credit Agreement shall be
waived until April 20, 2015 to the extent that the Borrower’s ability to comply
with such covenants is affected by matters previously disclosed by the Borrower
to the Administrative Agent in writing.  For the avoidance of doubt, (i) the
foregoing waiver shall not apply with respect to matters not previously
disclosed by the Borrower to the Administrative Agent in writing and (ii) any
failure to satisfy the Cost to Complete Test or the Time to Complete Test
following the expiration of the foregoing waiver shall continue to be subject to
the thirty (30) day cure period contemplated by Section 7.01(y) of the Credit
Agreement. 

(b)

Notwithstanding Section 9.01(i)(ii) of the Credit Agreement or Section
7.01(a)(ii) of the Guaranty, the financing statements delivered by the Borrower
and the Sponsor for Fiscal Year 2014 shall be permitted to include “going
concern” or like qualifications or exceptions relating to the Borrower’s
obligation to satisfy the Cost to Complete Test and Time to Complete Test and
other matters disclosed by the Borrower to the Administrative Agent prior to the
date hereof.

(c)

Notwithstanding clause (ii)(C) of the definition of “Risk Management Program” in
the Credit Agreement and Schedule III of the Credit Agreement, discretionary
diesel hedging by the Borrower currently in effect may exceed 75%, but shall not
exceed 90%, of projected diesel consumption in any month, with reference to the
most recent approved Financial Model.

3.

Miscellaneous

This letter shall become effective as of the date first written above only upon
(a) receipt by the Borrower and the Administrative Agent of counterparts of this
letter executed by the Borrower, the Guarantors, the Majority Lenders, the
Collateral Agent and the Administrative Agent and (b) payment of all fees and
expenses due and payable by the Loan Parties pursuant to Section 15.04 of the
Credit Agreement, including any fees of legal counsel for the Agents and the
Lenders to the extent the Borrower has received an invoice for such fees prior
to the date hereof.

In connection with this letter, the Borrower shall pay or cause to be paid to
the Administrative Agent  a waiver fee equal to US$200,000.00 (the “Waiver
Fee”).  The Waiver Fee shall be earned upon the effectiveness of this letter and
shall become due and payable in full on June 30, 2015.  The Borrower agrees
that, once paid, the Waiver Fee will not be refundable under any
circumstances.  The Waiver Fee will be paid in immediately available funds,
shall not be subject to reduction by way of set-off or counterclaim, and may be
shared among the Lenders and the Agents (and their respective affiliates) as the
Administrative Agent may determine in its sole discretion.    

                                                                                                                                                      
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

In consideration of the Administrative Agent’s and the Lenders’ willingness to
enter into this letter agreement, the Borrower and each Guarantor (including in
its capacity as an Equity Pledgor, as applicable) hereby release and forever
discharge the Secured Parties and each of their respective affiliates,
predecessors, successors and assigns, and the officers, managers, directors,
employees, agents, attorneys, advisors and representatives of the foregoing
(hereinafter all of the above collectively referred to as “Releasees”) from (and
agrees not to sue the Releasees for) any and all claims, counterclaims, demands,
damages, debts, suits, liabilities, actions and causes of action of any nature
whatsoever (whether arising in contract, tort, in law or in equity or otherwise)
that the Borrower, such Guarantor or any other Loan Party may have or claim to
have against any of the Releasees arising under or in connection with the Loan
Documents, any documents or instruments delivered pursuant thereto, the
transactions governed thereby or the dealings among the Loan Parties and their
Affiliates with the Releasees with respect thereto, or in any way based on or
related to any of the foregoing, including any transactions contemplated by or
funded with the proceeds of the foregoing, in each case based on facts,
circumstances, acts or omissions occurring or in existence on or prior to the
effective date hereof.

Upon the effectiveness of this letter, (a) each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import
referring to the Credit Agreement, and each reference in the other Loan
Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement, as in effect after giving effect to this letter and (b) each
reference in the Guaranty to “this Agreement”, “hereunder”, “hereof” or words of
like import referring to the Guaranty, and each reference in the other Loan
Documents to “the Guaranty”, “thereunder”, “thereof” or words of like import
referring to the Guaranty, shall mean and be a reference to the Guaranty, as in
effect after giving effect to this letter.

The Credit Agreement and each of the other Loan Documents are and shall continue
to be in full force and effect and, except as otherwise waived in accordance
with the terms hereof, are hereby in all respects ratified and confirmed.  The
execution, delivery and effectiveness of this letter shall not, except as
expressly provided herein, constitute a waiver of any provision of any of the
Loan Documents.

In case any provision herein or obligation hereunder shall be invalid, illegal
or unenforceable in any jurisdiction, the validity, legality and enforceability
of the remaining provisions or obligations, or of such provision or obligation
in any other jurisdiction, shall not in any way be affected or impaired thereby.

This letter may be executed in any number of counterparts and by the different
parties hereto in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one
and the same agreement.  Delivery of an executed counterpart of a signature page
to this letter by electronic means shall be effective as delivery of a manually
executed counterpart of this letter.

This letter shall be governed by, and construed in accordance with, the law of
the State of New York. 

                                                                                                                                                      
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

[Signature pages follow]

 

 

                                                                                                                                                      
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

 

MDW PAN LLP, as Borrower

By: MDW Pan Holding Corp., its Managing Partner

 

 

By:   _______________________________
Name:
Title:

GEH (U.S.) HOLDING INC.,

By:   _______________________________
Name: Bradley Blacketor
Title:   Treasurer

MDW GOLD ROCK LLP,

By: MDW-GR Holding Corp., its Managing Partner

 

By:   _______________________________
Name: Bradley Blacketor
Title:   Treasurer

MDW‑GR HOLDING CORP.,

By:   _______________________________
Name: Bradley Blacketor
Title:   Treasurer

MDW PAN HOLDING CORP.,

By:   _______________________________
Name: Bradley Blacketor
Title:   Treasurer

 

SFDOCS01/318028
                                                                                                                                                           
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

 

MIDWAY GOLD CORP.,

By:   _______________________________
Name: Bradley Blacketor
Title:   Chief Financial Officer

MIDWAY EXPLORATION LLC,

      By: Midway Gold US Inc., its Sole Manager

 

 

By:   _______________________________
Name: Bradley Blacketor
Title:   Senior Vice President & Treasurer

MIDWAY GOLD REALTY LLC,

      By: Midway Gold US Inc., its Sole Member

 

 

By:   _______________________________
Name: Bradley Blacketor
Title:   Senior Vice President & Treasurer

MIDWAY GOLD ROCK MINE CO.,

By:   _______________________________
Name: Bradley Blacketor
Title:   Treasurer

MIDWAY GOLD US INC.,

By:   _______________________________
Name: Bradley Blacketor
Title:   Senior Vice President & Treasurer

 

SFDOCS01/318028
                                                                                                                                                           
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

 

MIDWAY PAN MINE CO.,

By:   _______________________________
Name: Bradley Blacketor
Title:   Treasurer

MIDWAY SERVICES COMPANY,

By:   _______________________________
Name: Bradley Blacketor
Title:   Treasurer

MINE SERVICES LLC,

      By: Midway Gold US Inc., its Sole Member

 

 

By:   _______________________________
Name: Bradley Blacketor
Title:   Senior Vice President & Treasurer

NEVADA TALON LLC,

By: Midway Gold US Inc., its Sole Member and Authorized Person

 

 

By:   _______________________________
Name: Bradley Blacketor
Title:   Senior Vice President & Treasurer

RR EXPLORATION LLC,

By: Midway Gold US Inc., its Sole Member   and Authorized Person

 

By:   _______________________________
Name: Bradley Blacketor
Title:   Senior Vice President & Treasurer

SFDOCS01/318028
                                                                                                                                                           
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

 

GEH (B.C.) HOLDING INC.,

By:   _______________________________
Name:
Title:  

 

GOLDEN EAGLE HOLDING INC.,

By:   _______________________________
Name:
Title:  

 

MDW MINE ULC,

By:   _______________________________
Name:
Title:  

SFDOCS01/318028
                                                                                                                                                           
Midway – Waiver Letter

--------------------------------------------------------------------------------

 

 

COMMONWEALTH BANK OF AUSTRALIA, as Administrative Agent, Collateral Agent and
Lender

By:   _______________________________
Name:
Title: 

SFDOCS01/318028
                                                                                                                                                           
Midway – Waiver Letter

--------------------------------------------------------------------------------