OROYA
PRODUCTION UNIT, EXCEPT FOR THE PERMITTED LIENS AND THE DISPOSAL OF ASSETS
REFERRED IN CLAUSE 11.11 HEREOF, INCLUDING DISPOSAL OF THE COBRIZA MINE ASSETS.
12.12
EXPROPRIATION:
IF ON A DATE AFTER THE CLOSING DATE, THE PERUVIAN
GOVERNMENT SHOULD CARRY OUT ANY ACT THAT IN THE REASONABLE OPINION AND JUDGEMENT
OF THE BANKS' MAJORITY, (I) COULD RESULT IN DEPRIVING THE BANKS OF ANY OF THEIR
RIGHTS AS CREDITORS UNDER THIS CREDIT LINE AGREEMENT OR THE SECURITY AGREEMENTS,
OR (II) CONFISCATES, EXPROPRIATES OR NATIONALIZES DRP'S OWNERSHIP OR CONTROL OF
THE PROPERTIES MATTER OF THIS CREDIT LINE AGREEMENT OR OF THE SECURITY
AGREEMENTS.
12.13
POLITICAL VIOLENCE:
IF ON A DATE AFTER THE CLOSING DATE, OCCURS ANY
ACT OF WAR (DECLARED OR UNDECLARED), CIVIL WAR, REVOLUTION, INSURRECTION OR
TERRORISM IN THE REPUBLIC OF PERU THAT HAS A MATERIAL ADVERSE EFFECT ON DRP'S
ABILITY TO COMPLY WITH ITS OBLIGATIONS UNDER THIS CREDIT LINE AGREEMENT OR THE
SECURITY AGREEMENTS.
12.14
MATERIAL ADVERSE EFFECT:
IF ON THE DATE AFTER THE SIGNING OF THIS
CREDIT LINE AGREEMENT OCCURS ANY ACT OR CIRCUMSTANCE THAT, IN THE BANKS'
MAJORITY REASONABLE JUDGEMENT AND OPINION, COULD HAVE A MATERIAL ADVERSE EFFECT.
12.15
MATERIAL ADVERSE CHANGE:
IF ON THE DATE AFTER THE SIGNING OF THIS
CREDIT LINE AGREEMENT ANY ACT OR CIRCUMSTANCE SHOULD OCCUR, WHICH IN THE BANKS'
MAJORITY REASONABLE JUDGEMENT AND OPINION MAY CAUSE A MATERIAL ADVERSE CHANGE.
12.16
FAILURE TO COMPLY WITH THE PAMA:
IF DRP HAS FAILED TO COMPLY WITH
ANY OF ITS OBLIGATIONS ASSUMED BY VIRTUE OF THE PAMA, AS AMENDED FROM TIME TO
TIME, PURSUANT TO THE AGREEMENTS IN FORCE, WHICH WERE ENTERED INTO WITH THE
COMPETENT GOVERNMENT AUTHORITIES; EXCEPT IF IT INVOLVES THE FINAL CLOSURE OF THE
COBRIZA MINE OR IF THEY HAVE BEEN DISCLOSED TO THE AGENT PURSUANT TO THE
PROVISIONS SET FORTH IN THE SECOND PARAGRAPH OF CLAUSE ELEVEN, SUBCLAUSE 11.7
HEREOF.
The AGENT hereby recognizes that DRP is not fulfilling with the obligations
contained in the PAMA corresponding to the Cobriza Mine, since the term of
effect of the same has already expired.
In the case of the Cobriza mine, DRP
shall abide by the provisions set forth in Supreme Decree No. 022-2002-EM.
33
12.17
FAILURE TO COMPLY WITH INVESTMENTS:
IF DRP FAILS TO COMPLY WITH THE
INVESTMENT COMMITMENTS AGREED UPON WITH THE COMPETENT GOVERNMENT AUTHORITIES AND
DOES NOT CURE THE SAME IN THE MANNER PERMITTED BY SUCH AUTHORITIES.
CLAUSE THIRTEEN:
CONSEQUENCES OF THE EVENTS OF DEFAULT
13.1
SHOULD ANY OF THE EVENTS OF DEFAULT DESCRIBED IN THE PRECEDING
CLAUSE TAKE PLACE, AND PROVIDED THE TERM, SHOULD THERE BE SUCH A TERM, TO REMEDY
SAID EVENT OF DEFAULT WOULD HAVE EXPIRED WITHOUT DRP HAVING CURED IT, THE AGENT
IS ENTITLED, PROVIDED THE BANKS' MAJORITY REQUESTS IT, TO DECLARE THIS CREDIT
LINE AGREEMENT CANCELLED PURSUANT TO THE PROVISIONS SET FORTH IN ARTICLE 1430 OF
THE CIVIL CODE, BY MEANS OF A WRITTEN COMMUNICATION SERVED THROUGH NOTARIAL MEAN
TO DRP ATTACHING THERETO THE STATEMENT OF THE OWED BALANCE IN ACCORDANCE WITH
THE PROVISIONS SET