THEY REFLECT
DRP'S FINANCIAL CONDITION IN A PRECISE MANNER.
AS OF THE CLOSING DATE, DRP DOES
NOT HAVE ANY DIRECT OR CONTINGENT LIABILITIES, WHICH SHOULD BE REFLECTED IN ITS
FINANCIAL STATEMENTS ACCORDING TO THE GAAP IN PERU, OTHER THAN THOSE
(I) REFERRED TO OR REFLECTED IN THE AFOREMENTIONED
24
FINANCIAL STATEMENTS ON SAID DATES, (II) ARISING FROM THIS CREDIT LINE
AGREEMENT, THE SECURITY AGREEMENTS AND OTHER FINANCING DOCUMENTS, OR (III) THOSE
INFORMED TO THE AGENT; OR (IV) THAT RESULT FROM DRP'S THE REGULAR BUSINESS
ACTIVITIES AND THAT ARE CONSIDERED AN AUTHORIZED DEBT.
AS OF THE CLOSING DATE,
NO MATERIAL ADVERSE CHANGE HAS OCCURRED IN DRP'S CONSOLIDATED FINANCIAL
CONDITION REFLECTED ON THE FINANCIAL STATEMENTS AS OF DECEMBER 31, 2001, UNLESS
(A) SAID MATERIAL ADVERSE CHANGE HAS BEEN CORRECTED OR REMEDIED BY DRP, OR THE
AGENT OR THE BANKS HAVE WAIVED THEIR RIGHT TO COMPLAIN AGAINST SAID MATERIAL
ADVERSE CHANGE; OR (B) DRP HAD INFORMED THE AGENT OF SAID MATERIAL ADVERSE
CHANGE BEFORE THE CLOSING DATE, INCLUDING THOSE CONSIDERED IN THE INFORMATIVE
PROSPECTUS
10.8
LEGAL PROCEEDINGS:
EXCEPT FOR WHAT WAS DISCLOSED TO THE AGENT
BEFORE THE SIGNING OF THIS CREDIT LINE AGREEMENT, THERE IS NO PENDING ACTION,
INVESTIGATION, SUIT, WRITTEN COMPLAINT OR JUDICIAL PROCEEDING AGAINST DRP OR ITS
PROPERTY IN ANY COURT, GOVERNMENT COMMISSION OR COMMITTEE, BOARD, GOVERNMENT
AGENCY OR ARBITRATOR, OF WHICH ANY OF THE MEMBERS OF THE ADMINISTRATION OR
MANAGEMENT MAY BE AWARE, AND THAT COULD HAVE A MATERIAL ADVERSE EFFECT ON DRP.
10.9
DISCLOSURE:
AS OF THE CLOSING DATE, EXCEPT FOR WHAT HAS BEEN
INFORMED TO THE AGENT, THE DECLARATIONS MADE BY DRP MEMBERS OF THE
ADMINISTRATION OR MANAGEMENT IN THIS DOCUMENT AND IN THE SECURITY AGREEMENTS, DO
NOT INCLUDE ANY FALSE STATEMENT REGARDING ANY FACT OR INTENTIONAL OMISSION OF A
MATERIAL FACT THAT COULD CAUSE THE INFORMATION FURNISHED BY DRP TO LEAD THE
BANKS TO ERR.
AS OF THE CLOSING DATE, THERE IS NOT A FACT KNOWN BY DRP, WHICH
HAS NOT BEEN DISCLOSED TO THE AGENT, AND THAT COULD BRING AS A RESULT A MATERIAL
ADVERSE EFFECT ON DRP.
10.10
NON-EXISTENCE OF ACTS OF GOD AND EVENTS OF FORCE MAJEURE:
DRP'S
BUSINESS AND PROPERTY HAVE NOT BEEN AFFECTED BY FIRE, EXPLOSION, ACCIDENTS,
STRIKES, FORCED UPON STOPPAGES OR ANY OTHER LABOR PROBLEM, DROUGHT, STORM, HAIL,
EARTHQUAKES, EMBARGOES OR BY ANY OTHER CIRCUMSTANCE THAT IN A REASONABLE MANNER
MAY HAVE A MATERIAL ADVERSE EFFECT ON DRP.
10.11
NON-EXISTENCE OF DAMAGES TO THE ENVIRONMENT:
DRP OPERATES ITS
BUSINESS IN COMPLIANCE WITH ALL ENVIRONMENTAL LEGAL AND REGULATORY STANDARDS
APPLICABLE TO MINING-METALLURGICAL ACTIVITIES, AS AMENDED, TAKING INTO
CONSIDERATION THE PROVISIONS STIPULATED IN ITS RESPECTIVE ENVIRONMENTAL
ADJUSTMENT AND MANAGEMENT PROGRAM (PAMA).
IN THE CASE OF THE COBRIZA PAMA,
WHICH HAS ALREADY EXPIRED, DRP WILL ABIDE BY THE PROVISIONS SET FORTH IN SUPREME
DECREE NO. 022-2002-EM.
NO HARMFUL, TOXIC OR HAZARDOUS MATERIAL, AS DEFINED BY
THE AFOREMENTIONED STANDARDS, HAS BEEN OR IS DISCHARGED, DISPOSED OF, SPREAD OR
FREED BY DRP VIOLATING ANY APPLICABLE MINING-METALLURGICAL LAW OR REGULATORY
STANDARDS, UNLESS SUITABLE MEASURES ACCEPTED BY